Agenda packet — Santa Barbara City Council, March 1, 2022 (part 2 of 3)

 That after the first year the ordinance has been enacted, vendors will be issued a Notice of Violation for their first offense in a 12 month period instead of an immediate monetary fine;
 The City Administrator is directed to provide a report of implementation and outreach efforts, along with any recommendations for amendments to the Odrinance no later than April 2023.

The aforementioned changes have been implemented into the Ordinance under Section 1 as well as Sections 9.49.070 (B) and 9.49.120 (A)(1).

The Council Agenda Report (Attachment) contains a summary of all the other regulations contained in the Ordinance.

ATTACHMENT: February 8, 2022 City Council Agenda Report PREPARED BY: John Doimas, Assistant City Attorney
SUBMITTED BY: Ariel Calonne, City Attorney
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 8, 2022
TO: Mayor and Councilmembers
FROM: Economic Development Division, Community Development Department
SUBJECT: Introduction Of An Ordinance Amending Municipal Code To Regulate Sidewalk Vending
RECOMMENDATION:

That Council, introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending Title 9 of the Santa Barbara Municipal Code by the Addition of Chapter 9.49 to Regulate Sidewalk Vending in Accordance with State Law.

EXECUTIVE SUMMARY:

Santa Barbara Municipal Code (SBMC) § 9.48.010 generally prohibits all commercial use of City streets, sidewalks, pathways, and other public areas, subject to certain exceptions.

In January 2019, Government Code Sections 51036–51039 went into effect disallowing cities from prohibiting vendors from operating on public sidewalks or parks except in accordance with certain objective performance standards. The purpose of the proposed ordinance is to provide a clear pathway for microenterprise businesses, entrepreneurs, and individuals to lawfully and safely conduct sidewalk vending with performance criteria and regulations that protect the public health, neighborhoods, and business districts, and is consistent with state statute.

DISCUSSION:

Background
On August 3, 2021, staff presented a proposed sidewalk vending ordinance to the City Council Ordinance Committee (Ordinance Committee) for review and comment (Attachment 1). The Ordinance Committee members had a range of questions and

ATTACHMENT
City Council Agenda Report
Introduction Of An Ordinance Amending Municipal Code To Regulate Sidewalk Vending February 8, 2022

Page 2 ends

comments for staff regarding how the proposed ordinance would regulate sidewalk vending. The Committee expressed a desire to accommodate sidewalk vendors during Old Spanish Days and directed staff to seek additional community input.

On December 7, 2021, staff returned to the Ordinance Committee with an updated ordinance to reflect the committee’s feedback from the public as highlighted in the staff report (Attachment 2). The feedback focused on protecting public access and an accessible path of travel on sidewalks, crosswalks, and other high volume pedestrian areas such as Stearns Wharf, portions of the waterfront, and Downtown State Street sidewalks as well as implementing a low cost and a clear process for obtaining a permit.

Additionally, a provision was added to the ordinance based on feedback from the Ordinance Committee allowing for sidewalk vending of cascarónes and other non-food items on State Street and on the sidewalk adjacent to the curb downtown during the week of the Old Spanish Days Fiesta.

Lastly, the Council-adopted Economic Development Plan includes an objective to address opportunities for the creation and operation of microenterprise businesses. The recommended adoption of the proposed sidewalk vending ordinance would address this economic development objective.

The following sections provide an overview of the California Senate Bill 946 permits sidewalk vending and a summary of the proposed sidewalk vending ordinance.

State Law — Senate Bill 946
Currently, the City regulates street vendors under SBMC §9.48.010 (a general prohibition), § 15.16.010 (a general prohibition against vending in parks), and Chapter

5.32 (a tax permit requirement for door-to-door vendors). There are certain exceptions to this prohibition either created by ordinance (such as the exceptions contained within SBMC § 9.48.010 itself, the outdoor dining permit program established under SBMC Chapter 9.95, and the temporary authorization under the Emergency Economic Recovery Ordinance) or by operation of case law (such as the current limitation on the City’s ability to prohibit vending from legally parked vehicles that the staff intends to remedy by an ordinance that will be brought forward in the near future).

On September 17, 2018, Senate Bill 946 was signed into law, which limits the oversight that cities (charter cities included) have on sidewalk vendors and establishes statewide governance of vending in public parks and rights-of-way. Cities may adopt certain regulations so long as they are directly related to objective health, safety, and welfare concerns. The law went into effect on January 1, 2019, and is codified under Government Code Sections 51036–51039.

The stated intent of the legislation is to create entrepreneurial and economic development opportunities for immigrant and low-income communities. The Legislature found that sidewalk vending increases access to desired goods, such as culturally significant food City Council Agenda Report
Introduction Of An Ordinance Amending Municipal Code To Regulate Sidewalk Vending February 8, 2022

Page 3 ends

and merchandise; contributes to a safe and dynamic public space; and promotes public safety and welfare by encouraging local authorities to support and properly regulate sidewalk vending and decriminalize sidewalk vending.

State law also permits sidewalk vending in public parks unless there is a concession agreement that exclusively permits the sale of food or merchandise by the concessionaire. State law also allows park authorities to limit sidewalk vending in parks to ensure the public’s use and enjoyment of natural resources and recreational opportunities or to prevent an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of the park.

Lastly, State law makes any violation of the proposed ordinance punishable only by an administrative fine and requires a local authority to take into consideration the individual’s ability to pay the fine, reducing the fine if the assessment warrants reduction.

Although the passage of Senate Bill 946 restricted some aspects of the City’s regulatory oversight, the City is still able to adopt time, place, and manner restrictions on vending on public property that respond to objective health, safety, or welfare concerns. The proposed ordinance was written to be consistent with state law.

Proposed Ordinance
Sidewalk vendors include individuals who sell food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian paths. In addition, sidewalk vendors may be one of two types: roaming or stationary. A roaming sidewalk vendor moves from place to place and stops only to complete a transaction, whereas a stationary sidewalk vendor vends from a fixed location. The proposed ordinance regulates both stationary and roaming sidewalk vendors. Sidewalk vendors do not include an owner, employee, agent, or independent contractor of a business having an established storefront or other fixed business location within the City.

The proposed ordinance establishes business license, health permit, operational and location requirements, as well as special requirements for parks and the State Street Promenade area. Specific requirements are detailed in the proposed ordinance attached to this report; a summary of the requirements is provided below:

City Approvals:
• Sidewalk vendors must pay the applicable business tax under SBMC Chapter 5.04 and display a business tax receipt; however, no additional City permit or license is required.
• In issuing a business tax receipt, the Finance Department will accept a California driver's license or identification number, or an individual taxpayer number in lieu of a social security number.

City Council Agenda Report
Introduction Of An Ordinance Amending Municipal Code To Regulate Sidewalk Vending February 8, 2022

Page 4 ends

• Sidewalk vendors who vend food must obtain and display a County Health Department Permit.

Prohibited Items:
• Alcoholic Beverages, tobacco products and electronic smoking devices, cannabis and cannabis products, weapons, pharmaceuticals, and other merchandise prohibited by law.

Location Regulations Include:
• Roaming sidewalk vendors are permitted in residential zones between the hours of 8 a.m. and one-half hour after sunset and must move continuously except when stopped to complete a sale and must not reduce the path of travel on a sidewalk to less than 5 feet. Stationary sidewalk vendors are prohibited in all residential zones.
• Sidewalk vending is prohibited within 500 feet of any elementary, middle, junior high, or high school during the hours of 7:30 a.m. to 4:00 p.m. on days that school is in session.
• Sidewalk vending is prohibited within 200 feet of the entrance to any library, city hall, police station, government administration building, a fire station, or a hospital. • Sidewalk vending is prohibited within 18 inches from the edge of the curb, the roadway of any street or highway, off-street bicycle or multi-use path, bridge or in a location or manner where placement or operation endangers the safety of persons or creates a dangerous condition of property.
• Sidewalk vending is prohibited within 500 feet of a City-permitted special event. • Sidewalk vending is prohibited within 5 feet of a marked or unmarked crosswalk, fire hydrant, and the area directly in front of a transparent window. • Sidewalk vending is prohibited within 10 feet of marked bus zone, bench, or transit shelter, driveway, or an entry or exit of a business during operating hours. • Vending is prohibited within 100 feet of playgrounds, recreational fields, skate parks, ball courts, and an outdoor dining or patio dining area. • Sidewalk vending is prohibited in any City park or beach where the City has entered into an exclusive concessionaire’s agreement for the sale of food or merchandise. • Sidewalk vending is prohibited during times the park or beach is closed and in park, waterfront, and beach parking lots.
• Sidewalk vending is prohibited from the Cabrillo Boulevard intersection to the end of Stearns Wharf to address path of travel and pedestrian and vehicular conflicts. • Stationary sidewalk vending is prohibited on the north side of Cabrillo Boulevard or within 4 feet of an entry or exit of a business fronting on a public street. • Stationary sidewalk vending is permitted on the south side of Cabrillo Boulevard as long as the vending cart is located furthest from the street and a clear pedestrian path of travel of at least 8 feet is maintained along the sidewalk. • All sidewalk vending activities in parks shall be conducted from a sidewalk or pedestrian pathway within the park in an area designated for sidewalk vending by the Parks and Recreation Director.

City Council Agenda Report
Introduction Of An Ordinance Amending Municipal Code To Regulate Sidewalk Vending February 8, 2022

Page 5 ends

• Vending carts may not be placed or operated in a manner that impedes the flow of pedestrian traffic, including persons with disabilities using a mobility device, by reducing the path of travel on a sidewalk or pedestrian pathway to less than 5 feet.

Operational Requirements Include:
• Vendors must keep all waste generated by the preparation or service of food products or other products within cart, and stationary vendors must maintain a clean and trash-free vending location including a 10-foot radius. • Vending carts or vending displays cannot exceed a length of 74 inches, a width of 34 inches, or a height of 80 inches.
• Attached umbrellas on vending carts cannot exceed 48 inches in diameter and can be no shorter than 80 inches.
• Stationary sidewalk vendors and roaming sidewalk vendors cannot operate in commercial zones between the hours of midnight and 6:00 a.m. • Vending carts may not be stored in any zone on the sidewalk or other City property overnight and must be removed from the sidewalk after the hours of operation. • Vending carts cannot be left unattended.
• Vending carts cannot be locked, chained, or otherwise secured to any pole, sign, tree, or other object in the public right-of-way.
• Sidewalk vendors cannot use or set up tables, chairs, or other structures on sidewalks. Stationary vendors may use a stool or chair for personal use. • Sidewalk vendors that vend food items shall provide a trash receptacle for customers.
• A stationary sidewalk vendor that vends food shall operate within 200 feet travel distance of an approved and readily available toilet and handwashing facility. • Carts must be self-contained, including power sources. Vendors cannot connect to or use a water or electrical source owned by the City or private party without authorization. Gas generators are prohibited.

Penalties: The proposed ordinance establishes administrative citation fines ranging from $100 to $500 for licensed vendors who violate the provisions of the ordinance. Criminal penalties for violation of sidewalk vending regulations are prohibited by state law.

The Ordinance Committee Agenda Report (Attachment 1) provides a summary of all the regulations minus those referenced above.

BUDGET/FINANCIAL INFORMATION:

No budget impact is expected.

ATTACHMENTS: 1. August 3, 2021 Ordinance Committee Agenda Report

2. December 7, 2021 Ordinance Committee Agenda Report
PREPARED BY: Jason Harris, Economic Development Manager City Council Agenda Report
Introduction Of An Ordinance Amending Municipal Code To Regulate Sidewalk Vending February 8, 2022

Page 6 ends

SUBMITTED BY: Eli Isaacson, Community Development Director APPROVED BY: Community Development Department

CITY OF SANTA BARBARA

ORDINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: August 3, 2021
TO: Ordinance Committee
FROM: City Attorney’s Office
SUBJECT: Sidewalk Vending Ordinance
RECOMMENDATION:

That Ordinance Committee consider a proposed Ordinance of the Council of the City of Santa Barbara Amending Title 9 of the Santa Barbara Municipal Code by the Addition of Chapter 9.49 to Regulate Sidewalk Vending in Accordance With State Law.

EXECUTIVE SUMMARY:

Santa Barbara Municipal Code (SBMC) § 9.48.010 generally prohibits all commercial use of City streets, sidewalks, pathways, and other public areas, subject to certain exceptions.

In January 2019, Government Code Sections 51036–51039 went into effect preventing cities from prohibiting vendors from operating on public sidewalks or parks except in accordance with certain objective performance standards. The purpose of the proposed ordinance is to establish performance criteria for sidewalk vendors in the City consistent with state statute.

DISCUSSION:

State Law- SB 946
Currently, the City regulates street vendors under SBMC §9.48.010 (a general prohibition), § 15.16.010 (a general prohibition against vending in parks), and Chapter

ATTACHMENT 1
Ordinance Committee Agenda Report
Sidewalk Vending Ordinance
August 3, 2021

Page 2 ends

On September 17, 2018, Senate Bill 946 was signed into law, which limits the oversight cities (charter cities included) have on sidewalk vendors and establishes statewide governance of vending in public parks and rights-of-way. Cities may adopt certain regulations so long as they are directly related to objective health, safety and welfare concerns. The law went into effect on January 1, 2019 and is codified under Government Code Sections 51036–51039.

The stated intent of the legislation is to create entrepreneurial and economic development opportunities for immigrant and low-income communities. The Legislature found that sidewalk vending increases access to desired goods, such as culturally significant food and merchandise; contributes to a safe and dynamic public space; and that the safety and welfare of the public is promoted by encouraging local authorities to support and properly regulate sidewalk vending and decriminalizing sidewalk vending.

Lastly, State law makes any violation of the proposed ordinance punishable only by an administrative fine and also requires a local authority to take into consideration the individual’s ability-to-pay the fine, reducing the fine if the assessment warrants reduction.

While the passage of SB 946 restricted some aspects of the City’s regulatory oversight, the City is still able to adopt time, place, and manner restrictions on vending on public property that are in response to objective health, safety, or welfare concerns. The proposed ordinance has been prepared to be consistent with state law.

Proposed Ordinance
Sidewalk vendors include individuals who sell food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian paths. In addition, sidewalk vendors may be one of two types: roaming or stationary. A roaming sidewalk vendor is a sidewalk vendor who moves from place to place and stops only to complete a transaction while a stationary sidewalk vendor is a sidewalk vendor who vends from a fixed location. Sidewalk vendors do not include an owner, employee, agent, or independent contractor of a business having an established storefront or other fixed business location within the City. The proposed ordinance regulates both stationary and roaming sidewalk vendors.

The proposed ordinance establishes business license, health permit, operational, and location requirements, as well as special requirements for parks and the State Street Ordinance Committee Agenda Report
Sidewalk Vending Ordinance
August 3, 2021

Page 3 ends

Promenade area. For specific requirements, please refer to the proposed ordinance that is attached to this report, however, a summary of the requirements is provided below:

City Approvals-
 Sidewalk vendors must pay the applicable business tax under SBMC Chapter 5.04 and display a business tax receipt. However, no additional City permit or license is required.
 In issuing a business tax receipt, the Finance Department will accept a California driver's license or identification number, or an individual taxpayer number in lieu of a social security number.
 Sidewalk vendors who vend food must obtain and display a County Health Department Permit.

Prohibited Items:
 Alcoholic Beverages, tobacco products and electronic smoking devices, cannabis and cannabis products, weapons, pharmaceuticals, and other merchandise prohibited by law.

Location regulations include:
 Roaming sidewalk vendors are permitted in residential zones between the hours of 8 a.m. and one-half hour after sunset and must move continuously except when stopped to complete a sale. Stationary sidewalk vendors are prohibited in all residential zones.
 Sidewalk vending is prohibited within 500 feet of any elementary, middle, junior high, or high school during the hours of 7:30 a.m. to 4:00 p.m. on days that school is in session.
 Sidewalk vending is prohibited within 200 feet of the entrance to any library, city hall, police station, government administration building, a fire station, or a hospital.  Sidewalk vending is prohibited in a location or manner where placement or operation endangers the safety of persons or creates a dangerous condition of property.
 Sidewalk vending is prohibited within 500 feet of a City-permitted special event.  Sidewalk vending is prohibited within 5 feet of a bicycle rack and the area directly in front of a transparent window or within 4 feet of an entry or exit of a business.  Vending is prohibited within 100 feet of playgrounds, recreational fields, skate parks, ball courts, and designated parking stalls.
 Sidewalk vending is prohibited in any City park or beach where the City has entered into an exclusive concessionaire’s agreement for the sale of food or merchandise.
 All sidewalk vending activities in parks shall be conducted from a sidewalk or pedestrian pathway within the park in an area designated for sidewalk vending by the Parks and Recreation Director. A vending cart may not be placed or operated in a manner that impedes the flow of pedestrian traffic, including persons with Ordinance Committee Agenda Report
Sidewalk Vending Ordinance
August 3, 2021

Page 4 ends

disabilities using a mobility device, by reducing the path of travel on a sidewalk or pedestrian pathway to less than 4 feet.

Operational requirements include:
 Requires vendors to keep their vending area clean and litter-free, and the vending cart must have a container for disposal of waste generated from vending activity.  Vending carts cannot exceed a length of 74 inches, a width of 34 inches, or a height of 80 inches.
 Vending carts cannot operate in commercial zones between the hours of midnight and 6:00 a.m.
 Vending carts may not be stored in any zone on the sidewalk or other City property overnight and must be removed from the sidewalk after the hours of operation.  Vending carts cannot be left unattended.
 Vending carts cannot be locked, chained, or otherwise secured to any pole, sign, tree, or other object in the public right-of-way.
 Sidewalk vendors cannot use or set up tables, chairs, or other structures on sidewalks.

State Street Promenade - Sidewalk vending is permitted within that portion of the State Street Promenade roadway that is authorized pursuant to guidelines issued by the City Administrator for outdoor dining or other commercial use.

Penalties - The proposed ordinance establishes administrative citation fines that range from $100 to $500 for licensed vendors who violate the provisions of the ordinance. Criminal penalties for violation of sidewalk vending regulations are prohibited by state law.

ATTACHMENT: Draft Sidewalk Vending Ordinance
PREPARED BY: Daniel S. Hentschke, Assistant City Attorney John S. Doimas, Assistant City Attorney
SUBMITTED BY: Ariel Calonne, City Attorney
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

ORDINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: December 7, 2021
TO: Ordinance Committee
FROM: Community Development Department
SUBJECT: Sidewalk Vending Ordinance
RECOMMENDATION:

That the Ordinance Committee consider a proposed Ordinance of the Council of the City of Santa Barbara Amending Title 9 of the Santa Barbara Municipal Code by the Addition of Chapter 9.49 to Regulate Sidewalk Vending in Accordance with State Law.

DISCUSSION:

On August 3, 2021, staff presented a proposed sidewalk vending ordinance to the City Council Ordinance Committee (Ordinance Committee) for review and comment (Attachment 1). The Ordinance Committee members had a range of questions and comments for staff regarding how the proposed ordinance would regulate sidewalk vending. The Committee expressed concern about accommodating sidewalk vendors during Old Spanish Days and directed staff to seek additional community input.

Based on the Ordinance Committee’s comments and feedback, the proposed sidewalk vending ordinance was updated (Attachment 2) to reflect the committee’s feedback and input from several business organizations. Overall, the feedback was focused on protecting public access and path of travel on sidewalks, crosswalks, and other high volume pedestrian areas such as Stearns Wharf, portions of the waterfront, and Downtown State Street sidewalks. Also, a provision has been added allowing for sidewalk vending of cascarónes and other non-food items on State Street and on the sidewalk adjacent to the curb in downtown during the week of the Old Spanish Days Fiesta.

In addition, public messaging on the updated proposed ordinance and the Ordinance Committee’s December 7, 2021, meeting was conducted via social media and the City’s website. Outreach to sidewalk vendors was conducted by staff from various departments who distributed summary fact sheets, both in English and Spanish, of the proposed ordinance and a notice of the Ordinance Committee meeting.

ATTACHMENT 2
Ordinance Committee Agenda Report
Sidewalk Vending Ordinance
December 7, 2021

Page 2 ends

Updates to the Proposed Ordinance
Location regulations:
• Sidewalk vending is prohibited in park, waterfront, and beach parking lots. • State Street Promenade – Sidewalk vending is prohibited on sidewalks in downtown State Street from Cabrillo Boulevard to Victoria Street with the exception of the week of Old Spanish Days.
• Stearns Wharf – Sidewalk vending is prohibited from the Cabrillo Boulevard intersection to the end of Stearns Wharf.
• Stationary sidewalk vending is permitted on the south side of Cabrillo Boulevard as long as the vending cart is located furthest from the street and a clear pedestrian path of travel of at least eight feet is maintained along the sidewalk. Stationary sidewalk vending is prohibited on the north side of Cabrillo Boulevard.

Operational requirements include:
• Attached umbrellas on vending carts cannot exceed 48 inches in diameter and can be no shorter than 80 inches.

ATTACHMENT(S): 1. August 3, 2021, Ordinance Committee Agenda Report

2. Draft Sidewalk Vending Ordinance
PREPARED BY: Jason Harris, Economic Development Manager SUBMITTED BY: Eli Isaacson, Community Development Director APPROVED BY: Community Development Department
COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
1 AN ORDINANCE OF THE COUNCIL OF THE

CITY OF SANTA BARBARA AMENDING TITLE
9 OF THE SANTA BARBARA MUNICIPAL
CODE BY THE ADDITION OF CHAPTER 9.49

TO REGULATE SIDEWALK VENDING IN

ACCORDANCE WITH STATE LAW

THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

SECTION 1. Title 9 of the Santa Barbara Municipal Code is amended by the addition of Chapter 9.49 as follows:

Chapter 9.49
Sidewalk Vendors

9.49.010 Purpose.

9.49.020 Definitions.

9.49.030 Measurements.

9.49.040 Sidewalk Vending Authorized – Violations Prohibited.

9.49.050 Sidewalk Vending in Residential Zones.

9.49.060 Prohibited Merchandise.

9.49.070 Business License – Health Department Permit.

9.49.080 Operational Requirements.

9.49.090 Locational Requirements.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
2 9.49.100 Sidewalk Vending in Parks and Beaches.

9.49.110 State Street Promenade.

9.49.120 Administrative Penalty.

9.49.130 Removal of Carts.

9.49.140 Exemptions.

9.49.010 Purpose.

This Chapter establishes regulations of sidewalk vending in accordance with California Government Code Sections 51036 – 51039.

9.49.020 Definitions.

A. FOOD. Any type of edible substance or beverage intended for human consumption.

B. HEALTH DEPARTMENT. The County of Santa Barbara Environmental Health Services.

C. HEALTH DEPARTMENT PERMIT. All licenses, permits, certifications, and courses required and issued by the Health Department to vend food within the City.

D. MERCHANDISE. Any item, good, or tangible personal property of any kind that is not food intended for human consumption.

E. RESIDENTIAL ZONE. Areas designated on the Sectional Zoning Map of the City of Santa Barbara as: A-1 A-2, E-1, E-2, E-3, R-1, R-2, R-3, R-4, or S-H under COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
3 Title 28 of this Code; RS, R-2, R-M, R-MH under Title 30 of this Code; or within any overlay zone for mobilehome or residential planned unit or common interest development.

F. ROAMING SIDEWALK VENDOR. A sidewalk vendor who moves from place to place and stops only to complete a transaction, or as otherwise defined by Government Code Section 51036(b), as it may be amended.

G. SIDEWALK. The portion of a public street or highway, other than the roadway, set apart by curbs, barriers, markings or other delineation for pedestrian travel.

Sidewalk excludes, public paseos, plazas, and other public pedestrian pathways that are not part of a public street or highway.

H. SIDEWALK VENDOR. A person who vends food or merchandise from a vending cart or from one’s person upon a sidewalk. A sidewalk vendor does not include an owner, employee, agent, or independent contractor of a business having an established storefront or other fixed business location within the City.

I. STATIONARY SIDEWALK VENDOR. A sidewalk vendor who vends from a fixed location, or as otherwise defined by Government Code Section 51036(c), as it may be amended.

J. STATE STREET PROMENADE. The portions of State Street generally between Victoria Street and Haley Street closed to use by motor vehicles pursuant to City Council ordinance or resolution.

K. SUNSET. A time of day as determined by the National Weather Service.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
4 L. VEND OR VENDING. To sell, offer for sale, expose or display for sale, solicit offers to sell, barter, or exchange anything of value, even if the transaction is characterized as a donation.

M. VENDING CART. A pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance used by a sidewalk vendor to sell food or merchandise.

9.49.030 Measurements.

Distance shall be measured along a sidewalk as the closes points between the items or places being measured. When a distance is being measured between a vending cart and the entrance to a location, the measurement will be made to the point where the pathway to the entrance intersects the sidewalk. When a distance is measured to a school or other building or facility, measurement shall be made to the exterior boundary of the grounds on which the school or other building or facility is located.

9.49.040 Sidewalk Vending Authorized – Violations Prohibited.

Notwithstanding Chapter 9.48 of this Code, sidewalk vendors may vend on sidewalks in the City in compliance with all the requirements of this Chapter. A sidewalk vendor who vends in the City in violation of this Chapter is subject to an administrative citation punishable by an administrative penalty pursuant to Section 9.49.110 only.

9.49.050 Sidewalk Vending in Residential Zones.

A. Stationary sidewalk vendors are prohibited in residential zones.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
5 B. Roaming sidewalk vendors are permitted in residential zones between the hours of 8 a.m. and one-half hour after sunset. Roaming vendors must move continuously except when stopped to complete a sale. For purposes of this Section, “move continuously” means not staying in the same location for more than 5 minutes, except to complete a sale commenced during the initial 5 minutes.

9.49.060 Prohibited Merchandise.

Notwithstanding Section 9.49.040, sidewalk vending of the following merchandise is prohibited and punishable pursuant to Chapter 1.28 of this Code:

1. Alcoholic beverages;

2. Tobacco, tobacco products, or electronic smoking devices;

3. Cannabis or cannabis products;

4. Weapons, including knives, guns, or explosive devices;

5. Pharmaceuticals;

6. Any other merchandise prohibited by law from being vended from a vending cart.

9.49.070 Business License – Health Department Permit.

A. Sidewalk vendors are prohibited from vending without first paying the applicable business tax pursuant to Chapter 5.04 of this Code and obtaining and displaying a business tax receipt.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
6 B. When accepting business tax payments and issuing a business tax receipt to a sidewalk vendor, the Finance Department shall accept either a California driver's license or identification number, or an individual taxpayer number in lieu of a social security number. The Finance Director will keep the information exempt from public inspection, confidential, and not disclosable except as required to administer the permit or licensure program or comply with a state law or state or federal court order as required by Government Code Section 51038(c)(4).

C. Before issuance or renewal of a business tax receipt, a sidewalk vendor must provide the following information to the Finance Department:

1. The name and current mailing address of the sidewalk vendor;

2. A description of the merchandise offered for sale or exchange;

3. A statement whether the vendor intends to operate as a stationary or a roaming vendor;

4. All other information required by Chapter 5.04 of this Code;

5. The vendor’s California seller’s permit number (California Department of Tax and Fee Administration sales tax number);

6. If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal;

7. A certification by the vendor that to his or her knowledge and belief, the information provided is true.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
7 D. No sidewalk vendor may vend food anywhere within the City without first obtaining a Health Department Permit.

E. A copy of the business license certificate and, if applicable, the Health Department Permit, must be prominently displayed on each vending cart used by the licensed sidewalk vendor or carried by a sidewalk vendor when vending without a cart.

9.49.080 Operational Requirements.

A. Sidewalk vendors shall comply with each of the operational requirements in this Section.

B. Sidewalk vendors who vend food shall comply with the requirements of the Health Department Permit issued to the sidewalk vendor.

C. Vending carts shall not exceed a length of 74 inches, a width of 34 inches, or a height of 80 inches. A vending cart may have an attached umbrella with a diameter that does not exceed 48 inches and a height that does not exceed 94less than 80 inches.

D. Stationary sidewalk vendors and roaming sidewalk vendors shall not operate in commercial zones between the hours of midnight and 6:00 a.m.

E. Vending carts shall not be stored overnight in any zone on the sidewalk or other City property and must be removed from the sidewalk or other City property after the hours of operation.

F. Vending carts shall not be left unattended.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
8 G. Vending carts shall not be locked, chained, or otherwise secured to any pole, sign, tree, or other object in the public right-of-way.

H. Stationary sidewalk vendors shall maintain a clean and trash-free vending location including a 10-foot radius from the stationary cart. All waste generated by the preparation or service of food products or other products shall be maintained within cart until properly disposed of in a proper receptacle that is lawfully available for use of a stationary or roaming sidewalk vendor.

I. Sidewalk vendors that vend food items shall provide a trash receptacle for customers. The trash receptacle shall be large enough to accommodate customer trash.

The trash receptacle may be attached to the vending cart or placed adjacent to it. The trash receptacle shall be regularly emptied and available for customer use. Sidewalk vendors shall dispose of all waste, including all waste generated from preparation or service of food or other products and customer trash, in a proper receptacle that is lawfully available for use of the vendor.

J. A stationary sidewalk vendor that vends food shall operate within 200 feet travel distance of an approved and readily available toilet and handwashing facility, as required by California Health & Safety Code Section 114315.

K. Freestanding signs are prohibited. A vending cart may have signs advertising the sidewalk vendor and the products vended attached to the cart.

L. Sidewalk vendors shall not use or set up tables, chairs, or other structures, provided however, that a stationary vendor may use a stool or chair for personal use.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
9 M. Carts shall be self-contained, including any power sources. Sidewalk vendors shall not connect to or use a water or an electricity source owned by the City or a private party without authorization from the City or the private party. Gas powered generators are prohibited.

N. Sidewalk vendors shall comply with all laws regulating noise and must not create a noise nuisance.

O. Sidewalk vendors shall comply with all applicable rules, regulations and requirements promulgated by the City, including but not limited to, park regulations and regulations related to the State Street Promenade.

9.49.090 Locational Requirements.

A. Sidewalk vendors shall comply with each of the locational requirements in this Section.

B. Sidewalk vending is prohibited within 500 feet of any elementary, middle, junior high, or high school during the hours of 7:30 a.m. to 4:00 p.m. on days that school is in session.

C. A roaming sidewalk vendor shall not stop to make a sale in a manner that impedes the flow of pedestrian traffic, including persons with disabilities using a mobility device, by reducing the path of travel on a sidewalk to less than 45 feet, or that blocks entrance to a driveway.

D. Sidewalk vending is prohibited within 500 feet of a City-permitted special event. Permitted special events include certified farmers’ markets, the Santa Barbara Arts COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
10 and Crafts Show, parades, and other events conducted pursuant to a special event permit or other authorization issued by the City. This prohibition does not apply to a sidewalk vendor who has been authorized to participate as a vendor in the Santa Barbara Arts and Craft Show pursuant to Chapter 15.08. This prohibition does not apply to a sidewalk vendor who has been authorized to vend at a special event by the organizer of the event.

E. A stationary sidewalk vendor shall not place a vending cart or vend, and a roaming sidewalk vendor shall not stop to vend, in any of the following locations:

1. Within 5 feet of a marked crosswalk;

2. Within 5 feet of an unmarked crosswalk at the intersection of two streets;

3. Within 5 feet of any fire hydrant;

4. Within 5 feet ahead and 45 feet to the rear of a sign designating a bus stop;

5. Within 10 feet of a driveway or driveway apron;

6. Within 100 feet of an outdoor dining or patio dining area;

7. Within 18 inches from the edge of the curb;

8. Within the roadway of any street or highway;

9. On a sidewalk having a slope greater than 5 percent;

10. In a location or manner where placement or operation endangers the safety of persons or creates a dangerous condition of property; COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
11 11. Within 200 feet of the entrance to any library, city hall, police station, government administration building, a fire station, or a hospital;

12. Within 10 feet of the entrance to any business, during the hours that any business is open to the public;

13. Within 10 feet of a bicycle rack;

14. Within a City Class 1 off-street bicycle or multi-use path;

15. Within the approach to or on a vehicular, bike or pedestrian bridge.

F. Stationary sidewalk vendors shall not occupy the area directly in front of a transparent window or within 4 feet of an entry or exit of a business fronting on a public street.

G. In order to limit obstructions caused by a congregation of customers during periods of operations, and to clearly delineate responsibilities in operation, stationary sidewalk vendors shall not locate and roaming sidewalk vendors shall not vend closer than 50 feet from another sidewalk vendor.

H. Stationary sidewalk vendors are prohibited on the north side of Cabrillo Boulevard. Stationary sidewalk vendors are permitted on the sidewalk on the south side of Cabrillo Boulevard provided that the vending cart is located on the portion of the sidewalk furthest from the street and that a clear pedestrian path of travel of at least 8 feet is maintained along the sidewalk, except in areas where sidewalk vending is prohibited by subdivision D of this Section or by subdivision C of Section 9.49.100.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
12 9.49.100 Sidewalk Vending in Parks and Beaches.

A. Sidewalk vending is prohibited in City parks or beach, except when conducted in compliance with Subsection D, below.

B. Stationary sidewalk vending is prohibited in any City park or beach where the City has entered into an exclusive concessionaire’s agreement for the sale of food or merchandise in that City park, and signs have been posted at each entrance notifying sidewalk vendors.

C. Sidewalk vending is prohibited on Stearns Wharf and the sidewalks between the intersection of State Street and Cabrillo Boulevard and the entry to Stearns Wharf.

D. Sidewalk vendors shall comply with each of the following vending requirements:

1. Sidewalk vending shall not be conducted during times the park or beach is closed;

2. All sidewalk vending activities in parks shall be conducted from a sidewalk or pedestrian pathway within the park in an area designated for sidewalk vending by the Parks and Recreation Director. A vending cart may not be placed or operated in a manner that impedes the flow of pedestrian traffic, including persons with disabilities using a mobility device, by reducing the path of travel on a sidewalk or pedestrian pathway to less than 4 feet;
COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
13 3. Sidewalk vending is prohibited within 100 feet of playgrounds, recreational fields, skate parks, ball courts, and designated parking stalls;

4. Sidewalk vending is prohibited in areas set aside for special events or reserved use during the time period authorized for the special event or reserved use;

5. Sidewalk vending is prohibited in park, waterfront, and beach, parking lots.

E. The Parks and Recreation Director may adopt additional rules and requirements consistent with this Section and Government Code Section 51038(b)(2)(B) for conduct of sidewalk vending within parks. The additional rules will be effective upon publication of the rules in English and in Spanish.

9.49.110 State Street Promenade.

A. Sidewalk vending is permitted within that portion of the State Street Promenade roadway that is available for outdoor dining or other commercial activity under guidelines issued by the City Administrator and subject to all other requirements of this Chapter. Sidewalk vending is prohibited on the sidewalks within the State Street Promenade.

B. Notwithstanding Subsection A, sidewalk vending is prohibited entirely on the 500 block of State Street.

SHOWING CHANGES FROM CURRENT CODE
14 curb of the State Street Promenade provided that an 8 foot pedestrian path of travel along the sidewalk is maintained at all times. Use of the sidewalk authorized by this subdivision is limited to the week of the Old Spanish Days Fiesta.

9.49.120 Administrative Penalty.

A. A violation of this Chapter is punishable only by the following:

1. An administrative fine not exceeding $100 for a first violation;

2. An administrative fine not exceeding $200 for a second violation within one year of the first violation;

3. An administrative fine not exceeding $500 for each additional violation within one year of the first violation.

B. Administrative citations may be issued by any city employee designated by the City Administrator as responsible for enforcement of this Chapter.

C. Administrative citations and business license revocation issued pursuant to this Section may be appealed according to the provisions of Sections 1.25.080 – 1.25.130 of this Code. For purposes of this appeal, the employee issuing the citation will be deemed to be the Director as that term is used in Sections 1.25.080 – 1.25.130.

D. In reviewing an appeal, the Hearing Administrator shall take into consideration the person’s ability to pay the fine. The citation must include notice of the right to appeal, including the right to request an ability-to-pay determination and shall make available information regarding how to file an appeal. A person may request an ability-to-pay determination at adjudication or while the judgment remains unpaid, COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
15 including when a case is delinquent or has been referred to a comprehensive collection program.

E. If a person meets the criteria described in Government Code Section 68632 (a) or (b), the City will accept, in full satisfaction, 20 percent of the administrative fine imposed pursuant to Subsection A of this Section.

9.49.130 Removal of Carts.

A. The placement of a vending cart on a sidewalk in violation of the provisions of this Chapter is a public nuisance. A City employee authorized to enforce this Chapter may direct a sidewalk vendor to remove a cart placed in violation of this Chapter. If the sidewalk vendor refuses to remove the cart, or if the cart has been left unattended overnight, the City may impound the cart and its contents.

B. Impounded carts will be stored at a location designated by the City Administrator and may be retrieved by the sidewalk vendor during normal City business hours beginning on the day following impoundment. The City Administrator is directed to provide reasonable notice to sidewalk vendors, which notice may be by posting in a prominent location on the City’s Internet website or by written notice distributed to sidewalk vendors in connection with the issuance or renewal of a business license. A vending cart will be released to a sidewalk vendor upon proper identification of the cart, execution by the vendor of a statement under penalty of perjury declaring ownership of the cart, and payment of an impound fee in an amount set by City Council resolution not to exceed the reasonable cost to impound and store the cart.

COUNCIL INTRODUCTION DRAFT 02/08/22

SHOWING CHANGES FROM CURRENT CODE
16 C. Carts not retrieved within 30 days following the date of impound will be deemed abandoned property and may be may be sold or destroyed by the City.

Perishable food items may be discarded immediately.

9.49.140 Exemptions.

This Chapter does not apply to:

A. Traveling salespersons, commercial travelers or the like who exclusively or primarily sell to, or solicit orders for future delivery from local retailers, local businesses, local governments, local schools or local wholesale firms.

B. The occasional sales of goods and services, including admission to local events, by local school students to a function of their school; or fund raising sales by service clubs or groups such as Elks, Kiwanis, Lions, Boy Scouts or Girl Scouts.

C. Peddlers operating pursuant to a permit issued under Chapter 5.32 of this Code.

D. Solicitation of charitable or political contributions that do not involve the exchange of any merchandise or food in exchange for the donation. Such activity may be subject to Chapter 5.06 of this Code.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
1 AN ORDINANCE OF THE COUNCIL OF THE

CITY OF SANTA BARBARA AMENDING TITLE
9 OF THE SANTA BARBARA MUNICIPAL
CODE BY THE ADDITION OF CHAPTER 9.49

TO REGULATE SIDEWALK VENDING IN

ACCORDANCE WITH STATE LAW

THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

SECTION 1. Background and Introduction.

Senate Bill 946, which took effect on January 1, 2019, provides that cities and counties may not regulate sidewalk vending except in accordance with sections 51038 and 51039 of the California Government Code. California Government Code Section 51038 generally requires local regulation of sidewalk vending to be “directly related to objective health, safety, or welfare concerns.” The City seeks to adopt a sidewalk vending Ordinance to ensure compliance with the requirements of state law. Regulating sidewalk vending will benefit the entire Santa Barbara community as it will encourage entrepreneurship and provide for equal economic opportunities while ensuring orderly commerce and protection of the public safety and welfare. The City Administrator is directed to provide educational materials and outreach campaigns in English and Spanish to assist vendor compliance with the new regulations. Further, it is the City Council’s policy that administrative penalties will not be imposed for violations of this Chapter 9.49 as adopted by this ordinance for the first year following its enactment. The City Administrator is directed to provide a report of implementation and outreach efforts, along COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
2 with any recommendations for amendments, if any, to Chapter 9.49, no later than April 2023.

SECTION 2 1. Title 9 of the Santa Barbara Municipal Code is amended by the addition of Chapter 9.49 as follows:

Chapter 9.49
Sidewalk Vendors

9.49.010 Purpose.

9.49.020 Definitions.

9.49.030 Measurements.

9.49.040 Sidewalk Vending Authorized – Violations Prohibited.

9.49.050 Sidewalk Vending in Residential Zones.

9.49.060 Prohibited Merchandise.

9.49.070 Business License – Health Department Permit.

9.49.080 Operational Requirements.

9.49.090 Locational Requirements.

9.49.100 Sidewalk Vending in Parks and Beaches.

9.49.110 State Street Promenade.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
3 9.49.120 Administrative Penalty.

9.49.130 Removal of Carts.

9.49.140 Exemptions.

9.49.010 Purpose.

This Chapter establishes regulations of sidewalk vending in accordance with California Government Code Sections 51036 – 51039.

9.49.020 Definitions.

A. FOOD. Any type of edible substance or beverage intended for human consumption.

B. HEALTH DEPARTMENT. The County of Santa Barbara Environmental Health Services.

C. HEALTH DEPARTMENT PERMIT. All licenses, permits, certifications, and courses required and issued by the Health Department to vend food within the City.

D. MERCHANDISE. Any item, good, or tangible personal property of any kind that is not food intended for human consumption.

E. RESIDENTIAL ZONE. Areas designated on the Sectional Zoning Map of the City of Santa Barbara as: A-1 A-2, E-1, E-2, E-3, R-1, R-2, R-3, R-4, or S-H under Title 28 of this Code; RS, R-2, R-M, R-MH under Title 30 of this Code; or within any overlay zone for mobilehome or residential planned unit or common interest development.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
4 F. ROAMING SIDEWALK VENDOR. A sidewalk vendor who moves from place to place and stops only to complete a transaction, or as otherwise defined by Government Code Section 51036(b), as it may be amended.

G. SIDEWALK. The portion of a public street or highway, other than the roadway, set apart by curbs, barriers, markings or other delineation for pedestrian travel.

Sidewalk excludes, public paseos, plazas, and other public pedestrian pathways that are not part of a public street or highway.

I. STATIONARY SIDEWALK VENDOR. A sidewalk vendor who vends from a fixed location, or as otherwise defined by Government Code Section 51036(c), as it may be amended.

J. STATE STREET PROMENADE. The portions of State Street generally between Victoria Street and Haley Street closed to use by motor vehicles pursuant to City Council ordinance or resolution.

K. SUNSET. A time of day as determined by the National Weather Service.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
5 L. VEND OR VENDING. To sell, offer for sale, expose or display for sale, solicit offers to sell, barter, or exchange anything of value, even if the transaction is characterized as a donation.

M. VENDING CART. A pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance used by a sidewalk vendor to sell food or merchandise.

9.49.030 Measurements.

9.49.040 Sidewalk Vending Authorized – Violations Prohibited.

9.49.050 Sidewalk Vending in Residential Zones.

A. Stationary sidewalk vendors are prohibited in residential zones.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
6 B. Roaming sidewalk vendors are permitted in residential zones between the hours of 8 a.m. and one-half hour after sunset. Roaming vendors must move continuously except when stopped to complete a sale. For purposes of this Section, “move continuously” means not staying in the same location for more than 5 minutes, except to complete a sale commenced during the initial 5 minutes.

9.49.060 Prohibited Merchandise.

Notwithstanding Section 9.49.040, sidewalk vending of the following merchandise is prohibited and punishable pursuant to Chapter 1.28 of this Code:

1. Alcoholic beverages;

2. Tobacco, tobacco products, or electronic smoking devices;

3. Cannabis or cannabis products;

4. Weapons, including knives, guns, or explosive devices;

5. Pharmaceuticals;

6. Any other merchandise prohibited by law from being vended from a vending cart.

9.49.070 Business License – Health Department Permit.

A. Sidewalk vendors are prohibited from vending without first paying the applicable business tax pursuant to Chapter 5.04 of this Code and obtaining and displaying a business tax receipt.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
7 B. When accepting business tax payments and issuing a business tax receipt to a sidewalk vendor, the Finance Department shall accept either a California driver's license or identification number, or an individual taxpayer number in lieu of a social security number, or such other forms of identification as the Finance Director deems acceptable. The Finance Director will keep the information exempt from public inspection, confidential, and not disclosable except as required to administer the permit or licensure program or comply with a state law or state or federal court order as required by Government Code Section 51038(c)(4).

C. Before issuance or renewal of a business tax receipt, a sidewalk vendor must provide the following information to the Finance Department:

1. The name and current mailing address of the sidewalk vendor;

2. A description of the merchandise offered for sale or exchange;

3. A statement whether the vendor intends to operate as a stationary or a roaming vendor;

4. All other information required by Chapter 5.04 of this Code;

5. The vendor’s California seller’s permit number (California Department of Tax and Fee Administration sales tax number);

6. If the sidewalk vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal; COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
8 7. A certification by the vendor that to his or her knowledge and belief, the information provided is true.

D. No sidewalk vendor may vend food anywhere within the City without first obtaining a Health Department Permit.

9.49.080 Operational Requirements.

A. Sidewalk vendors shall comply with each of the operational requirements in this Section.

B. Sidewalk vendors who vend food shall comply with the requirements of the Health Department Permit issued to the sidewalk vendor.

D. Stationary sidewalk vendors and roaming sidewalk vendors shall not operate in commercial zones between the hours of midnight and 6:00 a.m.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
9 E. Vending carts shall not be stored overnight in any zone on the sidewalk or other City property and must be removed from the sidewalk or other City property after the hours of operation.

F. Vending carts shall not be left unattended.

G. Vending carts shall not be locked, chained, or otherwise secured to any pole, sign, tree, or other object in the public right-of-way.

I. Sidewalk vendors that vend food items shall provide a trash receptacle for customers. The trash receptacle shall be large enough to accommodate customer trash.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
10 J. A stationary sidewalk vendor that vends food shall operate within 200 feet travel distance of an approved and readily available toilet and handwashing facility, as required by California Health & Safety Code Section 114315.

K. Freestanding signs are prohibited. A vending cart may have signs advertising the sidewalk vendor and the products vended attached to the cart.

L. Sidewalk vendors shall not use or set up tables, chairs, or other structures, provided however, that a stationary vendor may use a stool or chair for personal use.

M. Carts shall be self-contained, including any power sources. Sidewalk vendors shall not connect to or use a water or an electricity source owned by the City or a private party without authorization from the City or the private party. Gas powered generators are prohibited.

N. Sidewalk vendors shall comply with all laws regulating noise and must not create a noise nuisance.

9.49.090 Locational Requirements.

A. Sidewalk vendors shall comply with each of the locational requirements in this Section.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
11 B. Sidewalk vending is prohibited within 500 feet of any elementary, middle, junior high, or high school during the hours of 7:30 a.m. to 4:00 p.m. on days that school is in session.

D. Sidewalk vending is prohibited within 500 feet of a City-permitted special event. Permitted special events include certified farmers’ markets, the Santa Barbara Arts and Crafts Show, parades, and other events conducted pursuant to a special event permit or other authorization issued by the City. This prohibition does not apply to a sidewalk vendor who has been authorized to participate as a vendor in the Santa Barbara Arts and Craft Show pursuant to Chapter 15.08. This prohibition does not apply to a sidewalk vendor who has been authorized to vend at a special event by the organizer of the event.

E. A stationary sidewalk vendor shall not place a vending cart or vend, and a roaming sidewalk vendor shall not stop to vend, in any of the following locations:

1. Within 5 feet of a marked crosswalk;

2. Within 5 feet of an unmarked crosswalk at the intersection of two streets;

3. Within 5 feet of any fire hydrant;
COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
12 4. Within 5 feet ahead and 45 feet to the rear of a sign designating a bus stop;

5. Within 10 feet of a driveway or driveway apron;

6. Within 100 feet of an outdoor dining or patio dining area;

7. Within 18 inches from the edge of the curb;

8. Within the roadway of any street or highway;

9. On a sidewalk having a slope greater than 5 percent;

10. In a location or manner where placement or operation endangers the safety of persons or creates a dangerous condition of property;

11. Within 200 feet of the entrance to any library, city hall, police station, government administration building, a fire station, or a hospital;

12. Within 10 feet of the entrance to any business, during the hours that any business is open to the public;

13. Within 10 feet of a bicycle rack;

14. Within a City Class 1 off-street bicycle or multi-use path;

15. Within the approach to or on a vehicular, bike or pedestrian bridge.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
13 F. Stationary sidewalk vendors shall not occupy the area directly in front of a transparent window or within 4 feet of an entry or exit of a business fronting on a public street.

9.49.100 Sidewalk Vending in Parks and Beaches.

A. Sidewalk vending is prohibited in City parks or beach, except when conducted in compliance with Subsection D, below.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
14 C. Sidewalk vending is prohibited on Stearns Wharf and the sidewalks between the intersection of State Street and Cabrillo Boulevard and the entry to Stearns Wharf.

D. Sidewalk vendors shall comply with each of the following vending requirements:

1. Sidewalk vending shall not be conducted during times the park or beach is closed;

3. Sidewalk vending is prohibited within 100 feet of playgrounds, recreational fields, skate parks, ball courts, and designated parking stalls;

4. Sidewalk vending is prohibited in areas set aside for special events or reserved use during the time period authorized for the special event or reserved use;

5. Sidewalk vending is prohibited in park, waterfront, and beach, parking lots.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
15 E. The Parks and Recreation Director may adopt additional rules and requirements consistent with this Section and Government Code Section 51038(b)(2)(B) for conduct of sidewalk vending within parks. The additional rules will be effective upon publication of the rules in English and in Spanish.

9.49.110 State Street Promenade.

B. Notwithstanding Subsection A, sidewalk vending is prohibited entirely on the 500 block of State Street.

C. In addition to vending authorized by subdivision A of this section, persons may vend cascarones (confetti filled eggs), and other non-food items from vending carts, tables, temporary stands placed within the roadway or on the sidewalk adjacent to the curb of the State Street Promenade provided that an 8 foot pedestrian path of travel along the sidewalk is maintained at all times. Use of the sidewalk authorized by this subdivision is limited to the week of the Old Spanish Days Fiesta.

9.49.120 Administrative Penalty.

A. A violation of this Chapter is punishable only by the following:

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
16 1. A Notice of Violation for a first violation;

2. An administrative fine not exceeding $100 for a second first violation within one year of the first violation;

32. An administrative fine not exceeding $200 for a thirdsecond violation within one year of the first violation;

43. An administrative fine not exceeding $500 for each additional violation within one year of the first violation.

B. Administrative citations may be issued by any city employee designated by the City Administrator as responsible for enforcement of this Chapter.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
17 E. If a person meets the criteria described in Government Code Section 68632 (a) or (b), the City will accept, in full satisfaction, 20 percent of the administrative fine imposed pursuant to Subsection A of this Section.

9.49.130 Removal of Carts.

COUNCIL INTRODUCTION DRAFT 03/01/22

SHOWING CHANGES FROM CURRENT CODE/
COUNCIL INTRODUCTION ON 02/08/22

BY DOUBLE UNDERLINE & DOUBLE STRIKETHROUGH
18 C. Carts not retrieved within 30 days following the date of impound will be deemed abandoned property and may be may be sold or destroyed by the City.

Perishable food items may be discarded immediately.

9.49.140 Exemptions.

This Chapter does not apply to:

C. Peddlers operating pursuant to a permit issued under Chapter 5.32 of this Code.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Introduction Of An Ordinance Approving The 2019-2022 Firefighters’ Association Bargaining Unit Memorandum Of Understanding RECOMMENDATION:

That Council ratify the Memorandum of Understanding between the City and the Santa Barbara Firefighters’ Association by introduction and subsequent adoption of, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Adopting A Memorandum of Understanding Between the City of Santa Barbara and the Santa Barbara Firefighters’ Association for the period of July 1, 2019 through June 30, 2022.

DISCUSSION:

In spring of 2020, staff was directed by the City Council to work with all of the bargaining units and unrepresented employees on salary and benefit modifications that would help the City reduce the overall budget as a result of fiscal impact of Covid-19.

As part of these benefit modifications (concessions), City negotiators agreed to a limited reopener on education pay with the Santa Barbara City Fire Association (SBCFA) by June 30, 2022.

City and SBCFA negotiators have reached an agreement for California State Firefighter I and Company Officer Certification Pay. These new Certification pays incentivize Fire Personnel to pursue courses and certifications that further develop the Department and provide a path for succession planning. Firefighters will be eligible to receive these specific certification pays in Fiscal Year 2022. The agreement is expected to be ratified by the membership of the Firefighters’ Association on February 25, 2022.

Agenda Item No. 5
Council Agenda Report
Introduction of Ordinance Approving The 2019-2022 Firefighters’ Association Bargaining Unit Memorandum of Understanding
March 1, 2022

Page 2 ends

BUDGET/FINANCIAL INFORMATION:

The costs of the additional certifications in Fiscal Year (FY) 2022 is estimated to be $110,122. This estimated cost was not part of the FY2022 Adopted Budget. The Fire Department is projected to have adequate expenditure savings in FY2022 to be able to fund the additional certification expenses.

ATTACHMENT(S): The 2019-2022 Fire Association Bargaining Unit Memorandum of Understanding
PREPARED BY: Sam Ramirez, Administrative Analyst III
SUBMITTED BY: Wendy Levy, Human Resources Director
APPROVED BY: City Administrator’s Office
SA390\036\9413360.v1-10/5/20
ORDINANCE NO. _______

AN ORDINANCE OF THE COUNCIL OF THE CITY OF
SANTA BARBARA ADOPTING THE 2019-2022

MEMORANDUM OF UNDERSTANDING BETWEEN THE

CITY OF SANTA BARBARA AND THE SANTA BARBARA

CITY FIREFIGHTERS' ASSOCIATION

THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

SECTION 1. The Memorandum of Understanding between the City of Santa Barbara and the Santa Barbara City Firefighters' Association entered into as of July 1, 2019 and attached hereto and incorporated herein by reference as Exhibit "A" is hereby adopted.

SECTION 2. During the term of the agreement, the City Administrator is hereby authorized to implement the terms of the Memorandum of Understanding between the City of Santa Barbara and the Santa Barbara City Firefighters' Association without further action by the City Council, unless such further action is explicitly required by state or federal law.

SA390\036\9413360.v1-10/5/20
2019-2022 AMENDED MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF SANTA BARBARA
AND

SANTA BARBARA
CITY FIREFIGHTERS ASSOCIATION, INC.

THIS AGREEMENT, SIGNED ON __________, IS ENTERED INTO AS OF JULY 1, 2019 BETWEEN THE CITY OF SANTA BARBARA (HEREINAFTER REFERRED TO AS "CITY") AND THE SANTA BARBARA CITY FIREFIGHTERS ASSOCIATION, INC. (HEREINAFTER REFERRED TO AS "SBCFA" OR “ASSOCIATION”). IT

SUPERSEDES AND REPLACES THE TERMS SET FORTH IN ANY PRIOR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND SBCFA.

Pursuant to Section 3500 et seq. of the Government Code of the State of California, the duly authorized representatives of the City and SBCFA, having met and conferred in good faith over the issues of wages, hours, and terms and conditions of employment as herein set forth, declare their agreement to the provisions of this Amended Memorandum of Understanding.

FOR THE CITY: FOR SBCFA:

Wendy Levy, Human Resources Director Robert Kendall, Fire Captain Sam Ramirez, Administrative Analyst III,
Labor Relations
Renzo Durbiano, Fire Engineer
Keith DeMartini, Finance Director Jon Turner, Fire Captain John Doimas, Assistant City Attorney Alex Kargbo, Firefighter _________________________________
Ashlan Allredge, Firefighter
Stuart Adams, Counsel

EXHIBIT A
SA390\036\9413360.v1-10/5/20

THIS PAGE INTENTIONALLY LEFT BLANK
i
SA390\036\9413360.v1-10/5/20

TABLE OF CONTENTS
Alphabetical by Article Title

ARTICLE- TITLE PAGE
1- BENEFITS DURING SICK LEAVE OR AUTHORIZED LEAVE WITHOUT PAY 1 2- BENEFITS - PART-TIME EMPLOYEES 1
3- BENEFITS - DOMESTIC PARTNERS 1
4- BEREAVEMENT LEAVE 1
5- BIWEEKLY PAY PERIOD 2
6- CAFETERIA PLAN 2
7- CALL BACK 2
8- CATASTROPHIC LEAVE 3
9- CERTIFICATE OF ILLNESS 3
10- CONDUCT UNBECOMING OF A FIREFIGHTER (CUB-F) 3
11- CONFERENCE ATTENDANCE 4
12- DEPENDENT CARE 4
13- DISABILITY RETIREMENT 4
14- DISCIPLINARY ACTION 4
15- DRIVER'S LICENSE 4
16- DRUG AND ALCOHOL TESTING POLICY 5
17- EDUCATIONAL REIMBURSEMENT 5
18- GRIEVANCE PROCEDURE 5
19- HAZARDOUS MATERIALS TEAM ASSIGNMENT 7
20- HEALTH INSURANCE FOR UNIT MEMBERS’ SURVIVORS 7
21- HOLIDAY COMPENSATION 7
22- HOLIDAY- ILLNESS OR INJURY 8
23- IMPLEMENTATION OF MOU 8
24- INDUSTRIAL LEAVE 8
25- LAYOFF PROCEDURE 9
26- LEAD CAPTAIN AND LEAD FIREFIGHTER ASSIGNMENT 9
27- LIFE INSURANCE 9
28- LOSS CONTROL SUPPORT (SAFETY) 9
29- MAINTENANCE OF BENEFITS 10
30- MANAGEMENT RIGHTS 10
ii
SA390\036\9413360.v1-10/5/20
31- MATERNITY/PARENTAL LEAVE 12
32- MEAL CONTRIBUTION 12
33- MEDICAL AND DENTAL INSURANCE 12
34- MEDICAL AND FITNESS EXAMINATIONS 13
35- MEETING AND CONFERRING 13
36- MINIMUM STAFFING 13
37- MODIFIED DUTY 15
38- MUNICIPAL CODE CHANGES 16
39- NO STRIKE OR LOCKOUT 16
40- NON-DISCRIMINATION 16
41- OUT-OF-CLASSIFICATION WORK 17
42- OVERTIME/FAIR LABOR STANDARDS ACT (FLSA) 19
43- PAYROLL DEDUCTIONS 20
44- PREMIUM PAY FOR USE OF SPANISH LANGUAGE SKILLS 20
45- PROBATIONARY PERIOD 21
46- PROFESSIONAL CERTIFICATION PAY 22
47- RETIREE MEDICAL INSURANCE CONTRIBUTION 23
48- RETIREMENT 24
49- SALARIES 25
50- SBCFA ACCESS TO WORK LOCATIONS 26
51- SBCFA BULLETIN BOARDS 26
52- SCOPE OF THE BARGAINING UNIT 26
53- SERVICE BETTERMENT PAY (EDUCATION) 27
54- SHIFT TRADES 27
55- SICK LEAVE 28
56- STANDBY PAY 29
57- STATION MAINTENANCE 29
58- STEP INCREASE PLAN 29
59- TERM OF AGREEMENT 29
60- UNAUTHORIZED LEAVE/SUSPENSION 30
61- UNIFORM ALLOWANCE 30
62- VACATION 30
63- WAIVER 32
iii
SA390\036\9413360.v1-10/5/20
64- WORK SCHEDULES 33
SA390\036\9413360.v1-10/5/20
1- BENEFITS DURING SICK LEAVE OR AUTHORIZED LEAVE WITHOUT PAY No sick leave, vacation, or holidays shall accrue to any employee during any full biweekly pay period in which the employee is on authorized leave without pay.

Employee on leave without pay shall also be responsible for full payment of insurance premiums.
2- BENEFITS - PART-TIME EMPLOYEES
Employees filling positions authorized by City Council in the official Position and Salary Control Resolution at more than 20 hours per week on a less-than-full time basis shall receive benefits as follows:
i. Cafeteria plan contribution, medical contribution, dental contribution, vision contribution, holiday and other benefits under this Agreement equal to the percent of time regularly scheduled versus a regular full-time (40 hour or 56 hour) schedule rounded up to the nearest ten percent (10%). ii. Vacation and sick leave equal to the percent of time actually worked versus a regular full-time (40 hour or 56 hour) schedule rounded up to the nearest ten percent (10%).
3- BENEFITS - DOMESTIC PARTNERS
The City shall allow same sex and opposite sex domestic partners dependent coverage under the medical, dental, and vision plans. In order to receive this benefit, domestic partners must be registered with the City Clerk’s office or the Secretary of State. The affected employee(s) shall be responsible for all tax consequences of this benefit.
4- BEREAVEMENT LEAVE
In case of death of a member of an employee's immediate family, a 40-hour employee shall be granted three (3) working days (24 hours) with pay, up to a maximum of five (5) days (40 hours), subject to the approval of the Department Head.

Employees of the Fire Department assigned to shift work shall be granted leave not to exceed two (2) shifts (48 hours) off with pay.

Immediate family is defined as mother, father, brother, sister, spouse, registered domestic partner, child, grandparents by blood or marriage, mother-in-law, fatherin-law, brother-in-law, sister-in-law, daughter-in-law, son-in-law, grandchildren by blood or marriage, step family members, or person standing in loco parentis. “In- SA390\036\9413360.v1-10/5/20 2
law” and “step” relationships shall include the immediate family of a registered domestic partner on the same basis as that of a spouse.

The intent of bereavement leave is to provide employees with adequate time to be with their immediate family during a period of anguish, whether it be at the time of death, preparation of funeral arrangements, and/or to attend a funeral.

Responsibility for proper administration of this section shall rest with the Fire Chief. 5- BIWEEKLY PAY PERIOD
All references to "hours, shifts, or days" may be considered on the basis of "hours per biweekly pay period" through conversion factors providing substantially equal employee benefits.
6- CAFETERIA PLAN
a. A flexible benefits plan known as a "125 Cafeteria Plan" and the "pre-tax advantage" provisions related to an employee’s eligible insurance premium contributions within the meaning of Section 125(d) of the Internal Revenue Code, shall be provided to employees.
b. Each employee shall be eligible to allocate a discretionary amount of $232.84 per month.
c. If medical and dental insurance selections exceed the cafeteria plan allocation in “b” above, the City will pay the difference of these respective insurance premiums up to the amounts in the Medical and Dental Insurance article of this MOU; said excess premium payments cannot be applied to any other element of the cafeteria plan.
7- CALL BACK
a. 40 hour per week employees called back to work from an off-duty status shall be compensated in accordance with the overtime provision of this Agreement.
b. If an employee is called back to duty on an overtime basis, such employee shall be compensated for no less than two hours overtime. c. Call back time commences upon the employee's receipt of the City's request for the employee to return to duty provided the employee promptly departs for his/her designated duty location.

SA390\036\9413360.v1-10/5/20 3
d. The Fire Chief retains the right to set administrative criteria governing when a fire investigator call-out, or other call back, is warranted and authorized.
e. Call back is defined as an employee remaining available to return physically to the workplace, at any time outside of normal working hours, and not limited to fielding a call or logging into a computer workstation. 8- CATASTROPHIC LEAVE
Employees will be covered by the Citywide Catastrophic Leave Policy, dated September 22, 2016, and incorporated herein by reference. This policy allows employee donation of eligible accrued time off to a coworker dealing with a catastrophic illness or injury to the coworker and/or the coworker’s spouse, registered domestic partner, or child.
9- CERTIFICATE OF ILLNESS
Section 3.08.170 of the Municipal Code regarding presentation of a physician's statement as proof of illness or sick leave absences, if for more than three consecutive working days, shall be interpreted to mean that such a physician's statement shall be required for absences of more than two consecutive shifts for shift personnel.

Employees may use up to 48 hours of accrued sick leave, or (or the equivalent of 6 months of sick leave accrual) per calendar year for the diagnosis, care or treatment of an existing health condition or preventative care (e.g. medical appointments) of a child, parent, spouse, domestic partner, child of a domestic partner of the employee, grandparents, grandchildren, siblings and parents-inlaw, as provided under state law.

An employee’s use of the first one-half of paid sick leave in a calendar year for any qualifying reason, is considered “Protected Sick Leave.” As such, no physician’s statement is required for sick leave utilized during this period. 10- CONDUCT UNBECOMING OF A FIREFIGHTER (CUB-F)
Firefighters are emergency responders held to a higher standard of behavior than ordinary employees because they respond to serious health and safety matters and at times may enter private property or residences. While off duty, firefighters shall not behave in a manner, or undertake actions that, reasonably considered, undermine the efficiency, cohesiveness, morale, or mission of the Department.

SA390\036\9413360.v1-10/5/20 4
11- CONFERENCE ATTENDANCE
SBCFA representatives shall be permitted not more than an aggregate total of eight (8) shifts (192 hours) of time off with pay to attend conferences or seminars related to SBCFA activities for each fiscal year (July 1 - June 30). Such attendance is subject to approval of the Fire Chief.
12- DEPENDENT CARE
The City will provide a pre-tax salary reduction plan for employee dependent care needs in accordance with Section 129 of the Internal Revenue Code. 13- DISABILITY RETIREMENT
An employee found physically or mentally incompetent to perform his/her regular duties, even with a reasonable accommodation of a disability, shall be terminated pursuant to City Charter Section 1007 or retired, if eligible, pursuant to State law and City regulations. An employee eligible to retire for non-industrial disability shall be entitled to use a maximum of 180 days (2,160 hours for shift personnel and 1,440 hours for 40-hour per week employees) sick leave benefits prior to the date the employee is eligible for retirement benefits. In no case shall an industrially injured employee be entitled to use sick leave benefits. 14- DISCIPLINARY ACTION
The City may provide the option of forfeiture of vacation time in lieu of taking other disciplinary action pursuant to Charter Section 1007 and enabling ordinances. 15- DRIVER'S LICENSE
Employees shall perform all activities necessary to maintain a Class 'C' or equivalent driver's license on their own time and at their own expense. The cost of any additional required driver's licenses, or the certificates or examinations necessary to obtain such licenses, shall be paid by the City. On-duty time, at the Fire Department's convenience, shall be provided for required testing and/or examinations.

SA390\036\9413360.v1-10/5/20 5
16- DRUG AND ALCOHOL TESTING POLICY
Employees in the job classifications of Administrative Fire Captain, Fire Captain, Fire Engineer, Firefighter, and Fire Inspector I, II and II are covered by the "City of Santa Barbara Drug and Alcohol Testing Policy for Fire Unit Employees" dated September 2000.
17- EDUCATIONAL REIMBURSEMENT
a. Educational Reimbursement Program: Employees shall be eligible for tuition reimbursement through the City of Santa Barbara’s Educational Reimbursement Program.
b. Fire Service Education Travel Expenses and Promotional Study List Materials: The Fire Department will provide up to a $400 reimbursement per fiscal year for the costs of lodging, meals, and mileage for fire service related courses, as outlined in the Standard Operating Procedures Manual, that are satisfactorily completed and receive the prior written reimbursement approval of the Fire Chief.

Reimbursement for the costs of books on the current Fire Engineer and Fire Captain promotional study list, but not eligible for reimbursement under the Educational Reimbursement Program, will also be permitted. The policies regarding reimbursement under this section shall be established by the Fire Chief and become part of the Santa Barbara City Fire Department's Standard Operating Procedures Manual. Reimbursement for lodging, meals and mileage shall be based upon the City of Santa Barbara Travel and Expense Reimbursement Policy for City Employees. The $400 per year available under this section will be accrued on July 1st of each fiscal year, up to a maximum ongoing accrual of $800.”
18- GRIEVANCE PROCEDURE
a. Grievances shall be defined as an alleged violation of this Agreement or dispute regarding interpretations, application or enforcement of this Agreement or the City Charter, City ordinances, resolutions, and written policies related to personnel practices and working conditions. Grievances shall not include disagreements regarding employment (including promotional) exams, disciplinary action, performance evaluations, probationary terminations, and items subject to meet and confer. b. Employees shall be assured freedom from reprisal for using the grievance procedure.

SA390\036\9413360.v1-10/5/20 6
c. Grievances shall be invalid unless filed within thirty (30) calendar days of the date the alleged grievable activity occurred or the employee could reasonably have known of its occurrence.
d. Step One - Immediate Supervisor. Any employee who has a grievance shall first try to get it settled through discussion with his immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of supervision. e. Step Two - Fire Chief. If after such discussion the employee does not believe the grievance has been satisfactorily resolved, he may file a formal appeal in writing to the Fire Chief within ten (10) calendar days after receiving the informal decision of his immediate supervisor. Fire Chief shall render his written decision and comment to the employee within ten (10) calendar days after receiving the appeal.
f. Step Three - Mediator. If, within fifteen (15) calendar days after receipt of the written decision of the Fire Chief the employee is still dissatisfied, he or she may request the services of a mediator from the State Mediation and Conciliation Service.
g. Step Four - City Administrator. If within fifteen (15) calendar days after the mediation process has been completed, or if mediation was not requested within fifteen (15) calendar days after receipt of the written decision of the Fire Chief, and the employee is still dissatisfied, he may appeal the decision to the City Administrator. Such appeal shall be made by filing a written appeal with the City Administrator. The City Administrator shall review the decision of the Fire Chief, and his/her decision, which shall be rendered within twenty-five (25) working days after the appeal is made, shall be final.

The City Administrator may request the advice of the Board of Civil Service Commissioners in any grievance proceeding, but he/she shall not be bound to follow any recommendation of the Board.
h. The time limitations for filing and responding to grievances may be waived or extended by mutual agreement of the parties. If either party to the grievance so requests, an informal hearing shall be conducted at the Fire Chief or City Administrator appeal levels. Employees may be represented by counsel or other person at any stage in the grievance process. For purposes of this Article "working days" refers to days in which the City Hall is open for business.
i. Grievances which are general in character and which involve interpretation or application of this MOU or City policies or which involve matters requiring resolution outside the authority of the Fire Chief shall be filed directly with SA390\036\9413360.v1-10/5/20 7
the Administrative Services Director who shall provide a written response within ten (10) working days.

An employee may appeal the response of the Administrative Services Director. The employee's appeal shall be handled in accordance with the procedures in steps three and four above.
j. Complaints regarding performance evaluation (non-grievable) may be discussed with next highest level of supervision above the individual initiating the evaluation and taken to Fire Chief for final review. k. Examinations for employment and promotions shall not be grievable but shall be protested in accordance with approved administrative policy. City will consult with SBCFA prior to adopting and amending said policy. 19- HAZARDOUS MATERIALS TEAM ASSIGNMENT
Any employee holding the rank of Firefighter, Fire Engineer, or Fire Captain who holds either a Hazardous Materials Technician Certificate or a Hazardous Materials Specialist Certificate from the State of California shall be paid in addition to his/her salary range an increase of either five percent (5%) for a Hazardous Materials Technician Certificate or seven percent (7%) for a Hazardous Materials Specialist Certificate while assigned to the Hazardous Materials Team. 20- HEALTH INSURANCE FOR UNIT MEMBERS’ SURVIVORS
The City shall maintain and pay for the existing level of insurance benefits for up to twelve (12) months for the surviving family of a unit member who dies in the line of duty, or for such greater period of time required by state or federal law. 21- HOLIDAY COMPENSATION
Employees shall be eligible to receive holiday time at the general employee holiday and personal leave schedule for 40-hour employees, and six and one-half (6-1/2) twenty-four hour shifts (156 hours) per year for shift personnel.

Each employee will have the option to receive holiday compensation earned during the payroll year in time off or cash, or any combination thereof. Cash-out will be at the straight time rate of pay at the same time and in the same manner as the vacation cash-out process. Cash-out must be taken at the end of the same payroll year in which the holiday time was accrued. An employee who does not cash-out holiday pay accrued during the year must bid to take the time off in the next year, and will not later be eligible to cash-out this time in lieu of taking time off.

SA390\036\9413360.v1-10/5/20 8
Holiday time for suppression personnel shall be taken annually only in conjunction with vacation unless otherwise authorized by the Fire Chief. 22- HOLIDAY- ILLNESS OR INJURY
When an employee is assigned to work on a day which is a holiday for said employee and by reason of illness or job-related illness or injury is unable to work as assigned, such employee shall not be charged with a loss of holiday time in addition to sick leave or injury leave.

An employee unable to work due to extended illness or injury may cash-out holiday time through the holiday/vacation cash-out process at the end of the payroll year by notifying the department of the employee's desire to do so in writing prior to December 15 of the payroll year. Cash-out must be taken at the end of the same payroll year in which the holiday time was accrued. An employee who does not cash-out holiday pay accrued during the year must bid to take the time off in the next year, and will not later be eligible to cash-out this time in lieu of taking time off.
23- IMPLEMENTATION OF MOU
City shall implement the provisions of this Memorandum of Understanding by adopting appropriate resolutions, ordinances, and administrative policies.

An employee will be eligible for any increases to salaries and benefits that were effective prior to adoption of this Agreement, retroactive to the effective dates specified, if the employee was an active City employee and bargaining unit member on the date that the City Council ratified the Agreement. 24- INDUSTRIAL LEAVE
The City shall not deduct either State or Federal withholding taxes from Labor Code Section 4850 payments as long as that practice remains in accordance with the law and the employee is receiving 4850 payments for the entire biweekly pay period. Employees will hold harmless the City of Santa Barbara for any tax or other consequences that may arise from not deducting taxes in accordance with this provision.

SA390\036\9413360.v1-10/5/20 9
25- LAYOFF PROCEDURE
In cases of abolition of positions which result in layoff of personnel or reduction in force, the following seniority policy shall apply to sworn members of the bargaining unit:
a. The individual with the least time in rank shall be first reduced. Where equal time in rank is the case, total time with the Fire Department shall be used to determine seniority.
b. The individual affected shall have the right to "bump" downward to the next lower sworn rank formerly held by the affected employee such that the last hired employee in the lowest sworn rank shall be the first employee laid off.

Rehiring shall be accomplished pursuant to Section 3.16.350 of the Municipal Code.
26- LEAD CAPTAIN AND LEAD FIREFIGHTER ASSIGNMENT
Any employee holding the rank of Fire Captain and assigned responsibility as Fire Station #1 Lead Captain shall be paid in addition to his/her salary range an increase in pay equal to ten percent (10%).

Any employee holding the rank of Firefighter and assigned responsibility as Fire Rescue Truck Lead Firefighter shall be paid in addition to his/her salary range an increase of seven and one-half percent (7.5%).
27- LIFE INSURANCE
The City will provide a term life insurance policy in the amount of $75,000 covering the employees only, with equal accidental death and dismemberment coverage. 28- LOSS CONTROL SUPPORT (SAFETY)
a. The City and SBCFA will abide by all provisions of the California Plan approved in accordance with the provisions of the Federal Occupational Safety & Health Act of 1970, and any applicable legislation as may be passed by the State of California to implement that plan. b. Any safety courses the employees are required to take will be provided on City time with pay.
c. The City will conduct a Safety Program on City time for the purpose of educating the employees concerning the provisions of the Occupational Safety & Health Act as well as the City safety policies.

SA390\036\9413360.v1-10/5/20 10
d. SBCFA will support without qualification the City's Safety Program and will encourage its members to attend safety courses if required by the City and made available on City time.
e. Both the City and SBCFA recognize the need and will strive to reduce the number of industrial injuries among the employees.
f. The City will either provide all safety equipment or will reimburse the employee for purchasing the equipment, whenever such equipment has been required by the City as necessary for the job. Such equipment may include, but not be limited to, safety shoes, safety glasses, helmets, gloves, safety boots, life jackets, and all related safety items. The City will purchase wildland boots for new employees only The City shall retain the right to determine the minimum specifications of the safety equipment, procurement, procedures, and limitations and exclusions. 29- MAINTENANCE OF BENEFITS
a. All benefits (other than direct wages) as provided by ordinances, resolutions, and City Charter, in existence at the commencement of this Agreement, shall not be diminished, lessened, altered or reduced except as may be herein provided for the duration of the Agreement. b. Wage adjustments as provided for from time to time by ordinance, resolution, or City Charter, as such may be amended in accordance with this Agreement, shall also continue for the duration of this Agreement. c. The City has the right and prerogative to assign duties to and direct employees in accordance with applicable job specifications and Section

3.12 of the Santa Barbara Municipal Code.
30- MANAGEMENT RIGHTS
This section is to be interpreted in a manner consistent with applicable laws and with due regard for the provisions of this Agreement.

The City has an exclusive right to manage and direct the performance of services and the work force performing such services unless the City has specifically delegated, abridged, or modified any such rights in this Agreement. Such rights shall include but not be limited to the sole right to determine the organizational structure of the City, establish levels and types of services to be provided, determine the methods, means, and number of personnel by which operations are to be conducted including sole authority to contract or subcontract for municipal services, and to exercise complete control and discretion over the technology of performing the City's work.

SA390\036\9413360.v1-10/5/20 11
The City retains complete authority over the policies and direction and administration of the Fire Department, including but not limited to standards and methods of selection for employment, promotion and performance evaluation, disciplinary action; relief of employees from duty because of lack of work or other legitimate reasons; maintenance of the efficiency of government operations; establishment of the work week and work schedules; and determination of the content of job classifications.

SA390\036\9413360.v1-10/5/20 12
31- MATERNITY/PARENTAL LEAVE
An employee may request to take pregnancy and/or parental leave as provided under the City’s “FMLA/CFRA Family Care and Medical Leave Policy”, “Maternity Leave Policy”, and/or “Parental Leave Policy, or as provided under state or federal law.
32- MEAL CONTRIBUTION
Employees are required by the City as a condition of employment to contribute financially to meals in the Fire Station at a charge equal to the value of the meal, irrespective of whether the employee chooses to eat the meal. Employees shall be solely responsible for any financial or tax liability regarding this provision.

Accordingly, the City shall be held harmless from any such liability. The City also shall not be responsible for maintaining any records or providing administration regarding this provision.
33- MEDICAL AND DENTAL INSURANCE
For the length of this Agreement the City will pay 100% of the premium for medical insurance for the employee only up to a maximum monthly amount of $1412.70.

Should the amount of "employee only" premium be less than the dollar limits herein described, the difference between the "employee only" premium and said dollar amount limits shall be applied to employee dependent medical coverage, if any.

Effective January 1, 2015, for an employee enrolled in a PPO plan that is coordinated with a Health Savings Account (HSA), the City will match the employee’s contribution to the HSA on a dollar-for-dollar basis, not to exceed a maximum City contribution of $50.00 per month, provided however that the total combined employer and employee amount will not exceed the annual indexed allowable HSA contribution limits. Effective January 1, 2016, this amount will be increased to a match not to exceed $75.00 per month.

For the length of this Agreement the City shall pay 100% of the premium for dental insurance coverage for the employee only up to a maximum monthly amount of $52.00.

The dental insurance shall provide for payments based upon 100% of reasonable and customary charges. The City will update dental schedule to reflect current, usual, customary, and reasonable charges in the Santa Barbara area.

SA390\036\9413360.v1-10/5/20 13
The City retains full and complete control over the selection, approval, and administration of insurance programs to include selection of the carrier, insurance contract renewal, and changes in program specifications.

The City will administer the medical plans option and the City will provide a vision care option for unit employees.
34- MEDICAL AND FITNESS EXAMINATIONS
The City shall continue to provide a program of annual medical exams for unit employees regularly assigned to the Hazardous Materials Response Team (HAZMAT); as well as, continuing a program of periodic fitness exams for all unit employees. The City retains full and complete control over these programs.

The City will provide voluntary medical examinations with a provider agreed to between the Association and the Fire Chief for employees who do not receive an annual HAZMAT exam, at cost not to exceed $18,000 annually to the City.

Medical examinations will be provided for eligible employees not more frequently than every two years, on a first-come-first-served basis, unless otherwise agreed between the Association and the Fire Chief.

The parties will reopen negotiations, upon either party’s 30 day prior written notice to the other, with regard to implementing a health and/or fitness maintenance program, which may establish requirements to demonstrate minimum job-related levels of health and/or fitness, and/or establish a program to reward employees for achieving and maintaining such level of fitness.
35- MEETING AND CONFERRING
Meeting and conferring over the renewal or continuation of this Agreement shall be initiated at the request of either party after September 1 of the last year of this Agreement, but not later than October 1 of the last year of this Agreement. Every effort will be made to reach an agreement prior to the expiration of this Agreement. 36- MINIMUM STAFFING
For the duration of the Agreement, subject to the requirements of Article X, Section 1008 of the City Charter, the City agrees to initially maintain the following minimum staffing levels:
a. The minimum staffing requirements of the Department shall be as follows:
(1) For Non-ARFF suppression, 25 sworn fire suppression personnel per shift within the City, not including sworn management, consisting of 7 engine companies and 1 truck company. Each engine company shall be comprised of one Fire Captain, one Fire SA390\036\9413360.v1-10/5/20 14
Engineer and one Firefighter. The truck company shall be staffed with one Fire Captain, one Fire Engineer, and two Firefighters. (2) For the Aircraft Rescue and Fire Fighting (ARFF) Suppression Company, there will be 3 sworn fire suppression personnel per shift, comprised of one Fire Captain and two Fire Engineers. (3) Staff on mutual aid of a duration of 12 hours or less will be included in the above numbers, in which case back filling shall be at the discretion of the Fire Chief.
(4) Employee assigned and paid in an “acting” capacity on a shift will be included in the above numbers at the acting rank. As provided under the department’s Standard Operating Procedure
“Overtime/Mandate”, acting employees will only be assigned where not enough personnel of the needed rank have made themselves available to work. City acknowledges that it is not its intent to permanently staff vacancies at the Engineer or Captain rank with acting employees. Out of classification work shall not exceed ten (10) consecutive shifts unless operational needs require a longer duration. The ten (10) consecutive shifts may be extended if operational needs require an extension and after the City has met and consulted with the Association.
(5) For the Prevention Bureau there shall be a minimum of 6 authorized positions on the official list of authorized positions. The City Council may direct that these positions, if vacated by the incumbent employee for reasons other than an involuntary termination, remain unfunded and unfilled without violating this section.
(6) There shall also remain a Training Captain position on the official list of authorized positions. The City Council may direct that this position, if vacated by the incumbent employee for reasons other than an involuntary termination, remain unfunded and unfilled without violating this section, however it is the intent of this section for the Training Captain position remain funded and filled if fiscal conditions permit.
b. If the City Council exercises its rights under Article X, Section 1008 of the City Charter, or otherwise discontinues the minimum staffing levels in Section 3(a), as outlined above, without the express written consent of the Association:
(1) The City will give the Association a minimum of 60 days written notice prior to the effective date of the change to minimum staffing (the “change date”), and
(2) In the event the Association believes that such intended action will affect the safety or workload of affected employees, it shall so advise the City, whereupon the City and the Association shall meet and confer in good faith over the impacts of the change, Such meeting and conferring, however, shall not prevent the City from SA390\036\9413360.v1-10/5/20 15
implementing the staffing change on an interim basis not less than 60 days after notice to the Association, but prior to the conclusion of negotiations over the impacts of the change.
c. Prior to making a decision to “contract out” work currently being performed by ARFF Suppression staff, the City will provide notice to the Association and the opportunity to meet and confer over both the decision and the effects of such decision.
d. If the City Council exercises its rights under Article X, Section 1008 of the City Charter, or otherwise discontinues the minimum staffing levels in Section 34(a)(ii) Non-ARFF Suppression, Section 34(a)(v) Prevention, or Section 34(a)(vi) Training Captain, without the express written consent of the Association the City will prospectively increase salaries across-the-board by 3%. This subsection “d” shall not apply to a reduction in ARFF Suppression staffing. 37- MODIFIED DUTY
a. The City’s Modified Work Program, which can be found in Chapter 4 and in Appendix 20 of the Injury and Illness Prevention Program (IIPP), shall apply to members of the Association.
b. The following provisions will apply to temporary modified duty assignments at the Fire department.
(1) Industrial Injury/Illness
i. The Fire Chief or his/her designee will coordinate all modified duty assignments for industrial injury or illness. ii. An employee unable to work due to an industrial injury or illness shall immediately notify the on-duty Battalion Chief whenever there is a change to the employee’s work restrictions.
iii. An employee shall immediately make himself or herself available to return to available modified duty upon authorization by the treating physician.
iv. Refusal by an employee with a job related injury or illness to accept a modified duty assignment under the work restrictions approved by the treating physician may result in loss of compensation and benefits under California Worker’s Compensation law and/or Labor Code §4850, consistent with applicable law.
v. An employee on modified duty will not be denied normal promotional or training opportunities based on his or her modified duty status.
vi. Modified duty assignments will be scheduled as follows, unless otherwise scheduled by the Fire Chief:

A. Short term: For modified duty of less than three
SA390\036\9413360.v1-10/5/20 16
weeks (21 consecutive calendar days) the employee will work 8:00 a.m. to 5:00 p.m. on the regularly assigned shift.

B. Long term: For modified duty of more than three
weeks, the employee will be converted to a 40-hour work week (typically four 10-hour days).
(2) Non-Industrial Injury/Illness
i. The Fire Chief may consider requests for a voluntary modified duty assignment from an employee who sustains a non-industrial injury/illness.
ii. If approved, a fire department employee will work a modified duty assignment in lieu of using sick leave or other disability benefits. iii. For all non-industrial injury or illness the employee will be converted to a 40-hour work week (typically four 10-hour days). iv. The Fire Chief may end any such modified duty assignment at his or her sole discretion.
38- MUNICIPAL CODE CHANGES
During the term of this Agreement the City and the SBCFA shall meet and confer with regard to any City proposed updates to Municipal Code Title 3 to reflect current practices.
39- NO STRIKE OR LOCKOUT
a. During the term of this Agreement, the City will not lockout employees and SBCFA will not engage in labor practices detrimental to providing services to the citizens of Santa Barbara or detrimental to the interests of the City; nor will SBCFA sanction, support, condone, approve, or engage in any strike, sick-in, slow-down, work stoppage, or speed-up. All matters of controversy coming within the scope of this Agreement will be settled by established grievance procedures.
b. Violation of the above shall be just cause for disciplinary action including termination.
c. City and SBCFA will not breach the terms of this Memorandum of Understanding or commit any unfair labor practices during the term of this Agreement.
40- NON-DISCRIMINATION
a. The provisions of this Agreement shall be applied equally to all employees covered herein without favor or discrimination because of race, religious SA390\036\9413360.v1-10/5/20 17
creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, pregnancy, age, sexual orientation, political or religious affiliations, union membership, or military and veteran status. b. The City and SBCFA will commit themselves to the goal of equal employment opportunity in all City services. Further, the Union agrees to encourage their members to assist in the implementation of the equal employment opportunity program.
c. The taking of FMLA leave, or other leaves of absence protected under state and federal law, will not be used as a negative factor in employment actions, such as hiring, promotions, or disciplinary actions, nor will such leave be counted as a negative factor under attendance policies, provided that the employee has complied with any and all notice and proof requirements applicable to such leave.
f. Repeated discourteous treatment by any City employee of fellow coworkers may be reported to the supervisor or Human Resources. Such behavior, or retaliation against a coworker for reporting such behavior in good faith, may subject the employee to corrective action up to and including discipline. g. Complaints may also be made under the terms of the Citywide Violence in the Workplace Policy (contained in the Injury and Illness Prevention Program) or Non-discrimination and Harassment Policy, as appropriate. 41- OUT-OF-CLASSIFICATION WORK
a. Suppression Employees. When a certified employee has worked out-ofclassification, the certified employee shall be compensated at the rate of the higher classification while the out-of-classification work continues.

Compensation for working out-of-class shall be as follows:
(1) Firefighters working as Acting Engineer, and Engineers working as Acting Captain:

The lowest salary step of the higher classification that is at least 5% above the employee's current base pay.

SA390\036\9413360.v1-10/5/20 18
(2) Firefighters working as Acting Captain:

The lowest salary step of the higher classification that is at least 10% above the employee's current base salary.

For the purposes of this subsection, an out-of-classification assignment is defined as the full-time performance of all the duties of an authorized, funded, permanent, full-time position in one classification by an employee in a position in another classification. Credit or pay for out-of-classification work shall accrue in half or full shift increments only. b. An employee assigned to work as a Battalion Chief shall be compensated at the greater of either minimum base salary assigned to that class or at least receive a 15% (fifteen percent) increase in base salary (up to maximum of range) for each full shift or day the employee is assigned such work.
c. Prevention Employees. Working a Fire Prevention employee out-ofclassification that is not certified as an Inspector II or III will occur only to meet the work requirements within the City and that such out-ofclassification work will terminate fifteen (15) consecutive work days or thirty (30) work days in any one calendar year, or if extended beyond fifteen (15) consecutive or thirty (30) work days, the employee shall be compensated at the rate of the higher classification while the out-of-classification work continues. When an employee with certification has worked out-ofclassification, the certified employee shall be compensated at the rate of the higher classification while the out-of-classification work continues.

For purposes of this subsection, an out-of-classification assignment is defined as assignment by the Fire Chief or designee of the full-time performance of the significant duties of an authorized, funded, permanent, full-time position in one or more higher classification(s) by an employee in a position in another classification. "Significant duties" shall be as defined on the appropriate class specification.

When an employee works out-of-classification continuously for fifteen (15) working days or more, the City shall place a letter in the employee's personnel file acknowledging the out-of-classification work.

It is the intent of this subsection to compensate employees for assigned outof-class work which extends beyond fifteen (15) consecutive or thirty (30) work days in any one calendar year.

SA390\036\9413360.v1-10/5/20 19
42- OVERTIME/FAIR LABOR STANDARDS ACT (FLSA)
a. All unit members are exempt under the provisions of the 7K exemption of the Fair Labor Standards Act (FLSA).
b. Suppression employees shall be on a 24-day work period. c. Overtime compensation for employees shall be as follows:
(1) Suppression Employees. Suppression employees shall be compensated at time and one-half their regular rate of pay for all hours worked in excess of 182 hours in a 24-day work period. Paid leave time shall count as time worked for purposes of this section.

All emergency call back and hold over time shall be compensated at time and one-half.
(2) Prevention Employees. Prevention employees shall be compensated at one and one-half times their regular rate of pay for all hours worked in excess of their regularly scheduled shift and/or in excess of 40 hours per week. Paid leave time shall count as time worked for purposes of this section.
d. Hourly rates for suppression employees shall be based on the established biweekly salary divided by 112 hours.
e. Employees assigned to fire watch overtime hours (e.g. movie sets, concerts) will be paid at time plus one-half.
f. Emergency callback overtime is paid from time of notification to time of departure from the station or other assigned reporting site. Other overtime, including but not limited to scheduled and mandated overtime, is paid from arrival to until departure from the station or other assigned reporting site. g. Comp Time may be earned and used as follows:

1. Employees shall have the option to be compensated by CTO for any portion of overtime worked at a time and one-half CTO rate, subject to a CTO accrual limit of 108 hours for suppression employees and 60 hours for prevention employees. Unless employees specifically designate CTO compensation for overtime worked, employees will receive monetary compensation for such overtime.

2. Effective July1, 2019, employees will be limited to no more than 120 hours of compensatory time used as paid time off in any calendar year.

SA390\036\9413360.v1-10/5/20 20

3. CTO shall be taken off under the same policies and procedures that govern vacation including the ability to utilize when an employee attends fire-related training.

4. An employee may also request, in the same manner as vacation time, to utilize CTO beyond the maximum five employees per shift if sufficient staffing will be available. The availability of sufficient staffing will be determined by the department at 0630 hours on the day of intended use. The employee requesting the CTO will be responsible for calling the department between 0630 and 0700 hours on the day of intended use to see if the CTO request is granted.

5. In limited circumstances, the department may approve a greater accrual of CTO as follows: 1) Suppression employees may be approved to accrue up to 144 CTO hours for use to attend scheduled, fire-related training and classes; or 2) An employee who has had to deplete his/her vacation time to extend a recovery period due to sickness or off-duty injury may be approved to accrue up to 144 CTO hours.
h. Members that respond to emergencies outside of the City’s jurisdiction will be paid “portal to portal” while in the course of their employment and assigned to an emergency incident, or pre-positioned for emergency response outside of the City’s jurisdiction.
43- PAYROLL DEDUCTIONS
The City will continue deducting monies from payroll and remit same to SBCFA as authorized by employee payroll deduction authorizations in accordance with present policy. Any changes in dues deductions shall be subject to indemnification of the City by SBCFA.

SBCFA will meet and confer at the City's request regarding the addition or deletion of other payroll deductions.
44- PREMIUM PAY FOR USE OF SPANISH LANGUAGE SKILLS
For all employees designated by the Fire Chief, who establish to the satisfaction of the Chief and the Human Resources Manager proficiency in conversing and reading skills in Spanish as demonstrated by appropriate testing, the City will pay premium pay of $51.20 each biweekly pay period.

Employees receiving such premium pay may be required to show continued proficiency as demonstrated by an annual recertification exam that is the same as the initial qualifying exam.

SA390\036\9413360.v1-10/5/20 21
Employees who are off-duty for an extended period of time due to illness or injury (including industrial-related illness or injury) and are designated by the Fire Chief to take the exam, may take the test to establish proficiency in Spanish language skills; however, he or she will not begin receiving the premium pay until they return to active duty.
45- PROBATIONARY PERIOD
The City may extend the probationary period upon written agreement of the employee. A consecutive period of time served by an employee in an acting capacity immediately prior to his/her regular appointment to the position shall be applied to the one year probationary period.

In addition, any period of ten (10) or more shifts served by an employee in an acting capacity within the six (6) months immediately prior to promotion shall be credited to the employee's probationary period.

SA390\036\9413360.v1-10/5/20 22
46- PROFESSIONAL CERTIFICATION PAY
a. Employees who meet the certification and eligibility requirements set forth herein shall receive the following pays effective the first full pay period following ratification of the MOU amendment. The percentage listed multiplied by the employee’s base salary rate constitutes the amount of the pay. The certificates listed below enhance the employees’ ability to do their job and a program or system is in place to evaluate and approve acceptable courses.

EMT-D* 0.5%
California State FF1 Certification
OR
California State Fire Inspector I
2%
California State FF II Certificate
OR Completion of FFI Certified Fire Academy
plus 1 year as a professional Firefighter
OR California State Fire Investigator I
Certificate
2%
Completion of Company Officer Courses
(2A, 2B, 2C, 2D, 2E, Instructor 1)
OR
Completion of State Fire Inspector II Courses
(2A,2B, 2C, 2D)
1%
California State Company Officer Certificate
OR
California State Fire Inspector II Certificate
2%
b. Certification Requirements
*EMT-D certification requirement as determined by the Santa Barbara County Emergency Medical Services Agency. Employee shall lose the certification pay and eligibility if recertification requirements are not met as determined and required by the Santa Barbara County Emergency Medical Services Agency. c. Eligibility Requirements
All eligible members will begin receiving pay effective the first full pay period following ratification of the MOU amendment. Subsequently, upon providing proof of eligibility, all newly eligible members will receive pay effective no later than two pay periods following submission.

d. Change in Criteria Meet and Confer
SA390\036\9413360.v1-10/5/20 23
In the event that the requirements/criteria for either the courses and/or certificates changes from current July 1, 2021 standards in such a manner so as to adversely impact the members’ ability to obtain the percentages specified herein, the parties agree to meet and confer to ensure that the ability to maintain/obtain the percentages in this section are preserved. 47- RETIREE MEDICAL INSURANCE CONTRIBUTION
a. This provision is applicable to employees who retire from City service on or after July 1, 1994, and

1. Have 15 or more years of classified or unclassified service; or

2. Retire from City with an industrial disability.
b. For employees who retire on or after the date this Agreement is ratified by the City Council, the City shall contribute $12.00 per month, per year of service up to a maximum of 35 years (i.e., $420.00/month) towards the purchase of medical insurance for the retiree and his/her spouse or registered domestic partner, if applicable.

Employees who retire from the City with an industrial disability shall receive a minimum contribution based upon 15 years of service, or actual years of service, whichever is greater.
c. The retiree is not limited to purchase of a City sponsored plan, provided however, that if the retiree purchases another insurance plan, the retiree must supply the City with adequate proof of insurance coverage prior to any contribution from the City. Proof of such coverage shall be provided to the City on a periodic basis, as reasonably determined by the City. d. The City shall continue to make its contribution until the retiree reaches age 65 or dies, whichever occurs first, provided however, that if the retiree dies before reaching the age of 65 and there is a surviving spouse or registered domestic partner, the City's contribution shall cease when the retiree would have reached age 65. Thereafter, the spouse or registered domestic partner may remain on the insurance plan, at his/her own cost, subject to the conditions set forth by the insurance company.
e. In the event Health Care legislation is passed which affects the nature of the benefit described above, the parties will reopen negotiations and modify SA390\036\9413360.v1-10/5/20 24
this benefit, if necessary, so as to maintain their original intent (e.g., eligibility, scope, cost).
48- RETIREMENT
a. Classic Employee For employees who are “Classic” employees under the Public Employees Retirement System (PERS):
(1) The City shall provide the 3% at age 50 PERS retirement formula for Fire safety employees.
(2) The employee will pay the full member contribution. (3) Classic employees will pay an additional cost share amount as follows:
i. Effective June 23, 2018, “Classic” employees under CalPERS will pay an additional 1.5% to CalPERS as cost-sharing under section 20516 (f), the “MOU Method,” of cost-sharing. This amount will be in addition to the 9% member contribution, for a total employee contribution of

10.5%.
ii. To the extent allowable by CalPERS, and consistent with the results of any required member election, these contributions will be tax-deferred and credited to the member account through the “Amendment Method” of cost-sharing. The City agrees to use reasonable haste to determine the eligibility of the cost-share under the amendment method, and to conduct any administrative processes necessary to achieve such amendment.
(4) The City shall provide One-Year Highest Compensation pursuant to Section 20042 of the California Government Code.
b. PEPRA Employee Effective January 1, 2013, “New” Fire Safety members as defined by California Public Employees’ Pension Reform Act of 2013 (hereinafter “PEPRA Employees) will be covered under the 2.7% at 57 Safety retirement formula, with a final compensation measurement period of the average of the highest three (3) consecutive years, as well as all other statutory requirements..

Effective January 1, 2013, new employees and/or members as defined by statute shall contribute half the normal cost for benefits, as defined by statute; the City will not pay any portion of these employees’ required contributions. c. For both “Classic” and “PEPRA” PERS members:
(1) The City shall provide Post-Retirement Survivor Allowance to Continue After Remarriage pursuant to Section 21635 of the California Government Code. This provides that if the surviving spouse remarries on or after January 1, 1985, the Post-Retirement Survivor Continuance will not cease.

This section will apply on account of remarriages that occur on and after the contract inclusion date for survivors or contracting agency members. (2) The City shall provide Increased Level of 1959 Survivor Benefits pursuant to Section 21572 of the California Government Code. This benefit allows SA390\036\9413360.v1-10/5/20 25
the City to provide 25% higher levels of 1959 Survivor Benefits than the level one benefits provided under section 21571 of the California Government Code.
(3) Suppression employees will have fifty-six (56) hours of regular salary reported to PERS.
(4) The City shall provide for employees to convert unused accumulated sick leave to additional PERS service credit at the time of retirement. (Government Code Section 20965).
(5) The City’s contract with PERS shall provide that Fire Inspectors I, II and III shall be designated as safety employees for purposes of retirement. (Government Code Section 20433).
d. Notwithstanding the above, the unclassified classification of Firefighter-Entry shall be enrolled in the CalPERS Miscellaneous retirement plan and subject to the contribution requirements applicable to the Miscellaneous plan. 49- SALARIES
a. The compensation which shall be paid to fire personnel shall be in accordance with Section 1211 (b) of the City Charter as amended. b. Further, the City agrees to provide employees with a minimum 5% increase in base salary upon promotion up to the maximum of the salary provided in the salary range for the position.
c. The following across-the-board increases will go into effect as indicated:

Effective Date Base Salary Increase
July 6, 2019 3.0%
July 4, 2020 No salary increase
e. Limited reopener – The SBCFA and City agree to commence limited reopener negotiations before June 30, 2021 as to education incentive pay only. f. Should a formal salary/compensation survey occur, the following survey agencies will be used:
(1) Santa Cruz
(2) Santa Monica
(3) Huntington Beach
(4) Oxnard
(5) Ventura
SA390\036\9413360.v1-10/5/20 26
(6) Newport Beach
(7) Pasadena
(8) Burbank
(9) Montecito
(10) Carpinteria
(11) Glendale
(12) Beverly Hills
50- SBCFA ACCESS TO WORK LOCATIONS
a. SBCFA officers or employees shall be permitted reasonable access to work locations for the purpose of processing grievances or contacting members concerning issues of wages, hours, or terms and conditions of employment.

Work locations will not be entered without the knowledge and consent of the Chief Officer on duty. Access shall not interfere with normal department operations or established safety or security requirements. b. Solicitation of membership and activities concerning SBCFA internal management shall not be conducted during working hours without the consent of the Fire Chief. The right to solicit members and conduct SBCFA activities shall not be unreasonably withheld if said activities are conducted during non-scheduled activity hours.
c. SBCFA shall submit requests to the Chief or his designee at least twentyfour (24) hours in advance of its desire to conduct a SBCFA meeting on City property. The Fire Chief or his designee has the discretion to approve any request but may not withhold approval unreasonably. The Fire Chief's response to SBCFA will be made within a reasonable time so that SBCFA can make other arrangements if necessary.
51- SBCFA BULLETIN BOARDS
The Association may furnish a bulletin board at each main work location for the conduct of Association business. The size and location of the boards must be approved by the City. All materials to be posted on such bulletin board shall be non-defamatory, must be approved and signed by an Association official and shall be used only for information related to the following subjects: Association recreational, social and related news bulletins, meeting notices, election notices and results, and other official Association business such as Committee reports. 52- SCOPE OF THE BARGAINING UNIT
SA390\036\9413360.v1-10/5/20 27
The bargaining unit will represent all employees in the classifications of Firefighter – Entry, Firefighter, Fire Engineer, Fire Captain, Fire Inspector I, Fire Inspector II and Fire Inspector III.
53- SERVICE BETTERMENT PAY (EDUCATION)
The former City Service Betterment Pay Plan was eliminated January 1, 1977. 54- SHIFT TRADES
Employees may voluntarily exchange work shifts or any portion of a shift with 24 hours advance notice and approval from the Fire Chief or designated representative. Employees exchanging shift time shall be of equal rank.

The City and Fire Department are not responsible for shift exchange arrangements made between employees. Outstanding shift exchange paybacks are the responsibility of the individual employee.

SA390\036\9413360.v1-10/5/20 28
55- SICK LEAVE
a. Employees shall be eligible to accrue sick leave at the rate of 12 days (144 hours for shift personnel and 96 hours for 40-hour per week employees) per year. Sick leave may be accumulated up to a maximum of 180 days (2,160 hours for shift personnel and 1,440 hours for 40-hour per week employees).

Sick leave may be used for the diagnosis, care or treatment of the employee’s existing health condition or preventative care (e.g. medical appointments). Employees may also use sick leave if they are a victim or domestic violence, sexual assault, or stalking, as provided under state law.

In no case shall sick leave be used in lieu of or in addition to vacation or industrial injury/illness leave.

An employee’s use of the first one-half of paid sick leave in a calendar year (72 hours for Shift personnel and 48 hours for 40-hour per week employees) for any qualifying reason, is considered “Protected Sick Leave.” As such, no physician’s statement is required for sick leave utilized during this period. Thereafter, Section 3.08.170 of the Municipal Code regarding presentation of a physician's statement as proof of illness or sick leave absences, of for more than three consecutive working days, shall be interpreted to mean that such a physician's statement shall be required for absences of more than two consecutive shifts for shift personnel.

Employees may use up to 6 days (72 hours for Shift personnel and 48 hours for 40-hour per week employees) of accrued sick leave per calendar year for the diagnosis, care or treatment of an existing health condition or preventative care (e.g. medical appointments) of a child, parent, spouse, domestic partner, child of a domestic partner of the employee, grandparents, grandchildren, siblings and parents-in-law, as provided under state law.
b. Sick Leave Annuity Upon Retirement At the time of retirement, the City shall calculate the amount of an annuity for sick leave for the retiring employee using the formula for sick leave conversion that is set forth in Government Code section 20965. The following conditions apply to this benefit:
(13) In order to qualify for payout of sick leave upon retirement, the retiring employee must have at least thirty (30) years of service and at least 500 accrued sick leave hours;
(14) The conversion rate of 0.004 year of service credit for each 8-hour day of sick leave is utilized.
(15) The retiring employee will be paid out in a lump sum amount based upon the value of the sick leave annuity.

SA390\036\9413360.v1-10/5/20 29
56- STANDBY PAY
When department management assigns 40 hour per week prevention employees to be on standby duty, the employees shall be compensated and governed by the following:
a. Employees shall be ready to respond to calls for their services. b. Employees shall be readily reachable by telephone or paging device. c. Employees shall remain within sixty minutes travel time from Santa Barbara City.
d. Employees shall refrain from activities which might impair their ability to perform their assigned duties.

The hourly standby pay amount will be $5.41 per hour.

Employees shall not accrue standby pay simultaneously with overtime pay. 57- STATION MAINTENANCE
Employees shall be responsible for interior and exterior day-to-day routine maintenance necessary to maintain cleanliness of fire stations, related buildings and appurtenant grounds. Any additional work other than that which is necessary to maintain cleanliness shall not be required unless mutually agreed by the Association and the City.
58- STEP INCREASE PLAN
a. Entry Level Firefighters shall be appointed at the A step. Entry level personnel shall be eligible for a salary step increase to the B step upon satisfactory completion of a probationary period of one year and a "probationary firefighters examination."
b. Further step increases through the salary range shall require, in addition to satisfactory performance, a period of one year of actual service in each step.
59- TERM OF AGREEMENT
The term of this Memorandum of Understanding is for three years commencing on July 1, 2019 and expiring on June 30, 2022.

SA390\036\9413360.v1-10/5/20 30
60- UNAUTHORIZED LEAVE/SUSPENSION
No sick leave, vacation, or holiday time shall accrue or be paid during any period of unauthorized leave or suspension. Should the suspension later be overturned, employee shall receive "back" pay and benefits that would have accrued to the employee as if the suspension had not taken place.
61- UNIFORM ALLOWANCE
a. The City shall provide employees in the bargaining unit an annual uniform allowance of $595 per full year that provides the entire City contribution for maintenance, cleaning and replacement of any authorized uniforms.

Payment of the uniform allowance will be paid to employees who are on the payroll during the pay period ending two (2) weeks prior to the payday on which the uniform allowance is paid in June or December of each year.

Payment will be made in a separate check, one-half ($297.50) in December and one-half ($297.50) in June, per the following schedule:

December, 2019; June, 2020; December 2020; June 2021;
December, 2021; June, 2022.
b. Newly hired employees will receive the full annual uniform allowance upon their commencement of employment with the City. Following twelve (12) months of employment, employees will receive their uniform allowance pursuant to the provisions of paragraph 'a' above.
c. The Fire Department's dress, fatigue and physical fitness exercise uniforms are for official on-duty use only and are not to be mixed with personal clothing or worn off-duty. Any use of fire equipment or the wearing of the Fire Department uniform by fire personnel not on duty will only occur with the express permission of the Fire Chief or designee.
d. The Fire Department will exchange uniforms destroyed in the line of duty. e. The City will clean employee turnouts as needed.
62- VACATION
a. The following vacation schedule shall apply to shift personnel:
 0 - 9 years continuous service accrues at 11 days (132 hours) per year.  10 years continuous service & over accrues at 17 days (204 hours) per year.

SA390\036\9413360.v1-10/5/20 31
b. Employees assigned to 40-hour work week prevention function shall receive the general employees vacation schedule.
c. Vacation hours bid in any vacation year must be taken by the end of that vacation year or the employee will cease accruing vacation, unless the employee elects to cash-out “unscheduled” vacation time pursuant to paragraph “e” below. It shall be the employees’ responsibility to monitor their vacation accrual and schedule their unbid vacation days. Said limitation on accumulation of vacation hours shall not apply if scheduled vacations are canceled by the City for emergencies or canceled due to illness, injury or personal emergencies of employees. All vacation hours carried over due to the cancellation of a scheduled vacation shall either be taken or cashed in by the end of the following vacation year. d. Employees may maintain a bank of unbid vacation hours not to exceed their previous year's accrual. These unbid vacation hours may be taken with prior scheduling and approval by the City consistent with the staffing needs of the department.

Each year an employee must bid sufficient vacation hours so that his/her unbid hours do not exceed an amount equal to his/her previous year's vacation accrual.
e. If a 40-hour employee takes a minimum of 80 hours of vacation during a payroll year, that employee is eligible to cash out any remaining vacation time. If a 56-hour employee takes a minimum of 96 hours of vacation during a payroll year, the employee is eligible to cash out any remaining "unscheduled" vacation time. Cash-outs of vacation time shall occur annually in conjunction with the vacation scheduling process. f. Vacations shall be scheduled in accordance with Municipal Code Chapter

3.08. A maximum of four (4) employees per shift may schedule vacation, holiday, or compensatory time off during any vacation year.

Effective with the 2008 vacation year, a 5th employee may be scheduled for vacation, holiday, or compensatory time off during any shift. The 5th slot will be available for bid during the normal 2008 vacation bid process. Once the vacation bid period is complete, an employee may request to use unbid vacation for an available 5th slot, provided he/she arranges to cover his/her own shift under the practice commonly referred to as a “wild card process”.

Based on unforeseen operational impacts of the new 5th vacation slot and following informal consultation with the Association to explore alternatives, the Fire Chief may require that an employee requesting to take vacation in SA390\036\9413360.v1-10/5/20 32
the 5th slot during the annual bid process must arrange to cover his/her own shift under the wild card process.
g. The City retains the right to cancel scheduled time off during emergencies. 63- WAIVER
Except as otherwise provided in this Agreement, each party voluntarily and unqualifiably waives the right and each agrees that the other party shall not be obligated to meet and confer with respect to any subject or matter pertaining to or covered by this Agreement. Nothing in the foregoing however, shall preclude the parties from meeting and consult during the term of this Agreement on matters of mutual concern. Such meeting and consulting shall be by mutual consent only.

Nothing in this Agreement shall in any way diminish the rights of the employees, the City, or the SBCFA as established by the Meyers-Milias-Brown Act of the State of California and all amendments thereto, or Santa Barbara Municipal Code, Chapter 3.12, except as herein provided.

SA390\036\9413360.v1-10/5/20 33
64- WORK SCHEDULES
a. Suppression Employees
(1) Suppression employees shall be regularly scheduled to work a 48/96 schedule. The following will apply to employees on a 48/96 work schedule:
i. A duty shift will be a period of 24 consecutive hours, starting at 0800 hours one day and continuing to 0800 hours the next day. A scheduled rotation will occur after 2 shifts (48 hours), followed by 96 hours off. This will result in 10 hours of scheduled overtime per 24- day FLSA work period.
ii. During the month of December annually, a “holiday black-out period” will be imposed wherein no vacation time off will be authorized between December 22nd and December 25th. However, a
supervisor may approve an employee’s use of vacation time off during this period if the employee arranges his or her own relief coverage.
iii. Except for off-district assignments through mutual aid or unusual circumstances, such as a local disaster, after 96 continuous duty hours an employee may request a minimum 12-hour period off duty for safety reasons before the employee returns to any duty. The Fire Chief or his/her designee also has the discretion to limit continuous duty to 96 hours for safety reasons.
iv. Vacation, comp-time, holiday, and sick leave may be scheduled only in blocks of 12 or 24 hours, except as required by state, local or federal law.
(2) City shall designate the employee's work week and may change an employee to a 40-hour week by providing 30 calendar days advance notice unless mutually agreed by employee and City or unless unanticipatable circumstances, other than discipline or retraining, necessitate lesser notice in order to maintain service levels and normal activities. The 30 calendar day notice will not apply to an employee whose schedule changes when starting or ending a temporary modified duty assignment. (3) Any firefighter, fire engineer, or fire captain that is either:
i. Assigned by the Fire Chief or his/her designee to a 40-hour work schedule while on mandatory temporary modified duty due to an industrial illness or injury; or
ii. Designated by the Fire Chief to work in an administrative capacity on a schedule of 40 hours a week to meet the needs of the City, will receive a biweekly “administrative assignment pay”. The biweekly amount will be approximately equal to 3 hours at the straight time hourly SA390\036\9413360.v1-10/5/20 34
rate of pay for an employee in the same job classification, but assigned to a 56-hours per week schedule.

The purpose of this pay will be to maintain a salary for the employee on a 40-hour per week administrative assignment that is approximately equal to that of an employee assigned to a 56-hour per week schedule. Any previous practice designed to achieve this salary equivalency will be discontinued. An employee assigned to a 40-hour schedule at his or her own request (e.g., due to a non-industrial illness or injury) will not be eligible for administrative assignment pay.
(4) If the City desires to change the regular work schedule, it shall notify the Association and provide it the opportunity to meet and confer. b. Prevention/Investigation Employees
Employees shall be regularly scheduled to work an average 40-hour work week and shall receive a minimum of two (2) consecutive days off subject to emergency call back, overtime or standby. The City shall designate the employees' work week.
c. Moving from 40-hour to 56-hour shift
When an employee moves from a 40 hour shift to a 56 hour shift, and vice versa, no conversion shall be made to the hours in the employee’s accrued leave banks.

An employee may use previously accrued vacation on an hour-for-hour basis.

However, the employee will begin accruing leave at the new rate applicable to that new schedule

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: Water Resources Division, Public Works Department SUBJECT: Adoption Of Resolution For A Lease Amendment With The State Of California State Lands Commission To Allow Unused Wastewater Outfall Pipeline To Remain In Its Current Location For The Remainder Of The Lease Agreement
RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Public Works Director to execute an amendment to Lease No. PRC 4924 with the State of California State Lands Commission.

DISCUSSION:

Background
On July 21, 2015, City Council approved a lease agreement with the State of California State Lands Commission (SLC) as part of the reactivation of the Charles E. Meyer Desalination Facility. The lease agreement, Lease No. PRC 4924, covers the existing 48-inch outfall pipeline for the El Estero Water Resource Center and the existing 42-inch diameter nonoperational outfall pipeline that was associated with the original wastewater plant. The SLC added a special condition to the lease agreement requiring the City of Santa Barbara (City) to submit a plan to the SLC for removal or other disposition of the non-operational 42-inch pipeline. The current lease expires on June 28, 2040.

Current Status
Before the June 2020 deadline for submission of the plan, the City performed several investigations of the pipeline and prepared a biological survey and impact assessment to evaluate the impacts of the pipeline removal. The assessments found that removal of the abandoned outfall pipe and pipe segments from the seafloor could have temporary and permanent impacts on the marine environment. The City submitted the biological survey and impact assessments to SLC staff and requested that the SLC allow the pipeline to be left in place to avoid negative impacts to the environment caused by removing the pipe.

Agenda Item No. 6
Council Agenda Report
Adoption Of Resolution For A Lease Amendment With The State Of California State Lands Commission To Allow Unused Wastewater Outfall Pipeline To Remain In Its Current Location For The Remainder Of The Lease Agreement
March 1, 2022

Page 2 ends

SLC staff agreed with the City’s request and prepared an amendment to the existing lease to reflect this change in the special provisions. Under the amendment, the 42-inch pipeline will remain in place for the duration of the lease. Further, in Fiscal Year 2038-2039 the City will be required to perform an additional biological and environmental assessment of both pipelines before submission of a lease renewal application by June 29, 2039. The amendment is scheduled for approval by the SLC at its February 25, 2022, meeting.

BUDGET/FINANCIAL INFORMATION:

There are minor costs to the City associated with the special provisions included in the lease amendment. These include the requirement that the City perform pipeline inspections, an impact analysis, and a biological survey of the pipeline before submission of the application for lease renewal. The purpose of these requirements is to assess whether maintenance should continue under a new lease. There are cost savings to the City associated with not being required to pursue removal of the abandoned pipeline.

A copy of the lease amendment may be requested from the Public Works Department for public review by contacting [email protected].

ENVIRONMENTAL REVIEW:

This action is categorically exempt from environmental review under California Environmental Quality Act Regulations § 15301 (existing facilities).

WATER COMMISSION RECOMMENDATION:

This item was presented to the Water Commission at its meeting on February 17, 2022, and the Commission voted 4-0 in support of staff’s recommendation (Commissioner Kammeyer was absent).

PREPARED BY: Joshua Haggmark, Water Resources Manager/AS/rb SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
RESOLUTION NO. _____

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AUTHORIZING THE PUBLIC WORKS
DIRECTOR TO EXECUTE AN AMENDMENT TO LEASE NO.

PRC 4924 WITH THE STATE OF CALIFORNIA STATE

LANDS COMMISSION
WHEREAS, on February 25, 2022, the State of California State Lands Commission approved an amendment to a Lease No. PRC 4925 to allow for the continued placement of one 42-inch diameter non-operational wastewater outfall pipeline, diffuser, rock ballast, and anchors; and
WHEREAS, the amendment, on file with the Public Works Department, is in the interest of the City;

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

SECTION 1. The Public Works Director is authorized to execute the amendment to Lease No. PRC 4925 as approved by the State Lands Commission and on file with the Public Works Department.

SECTION 2. The Public Works Director is further authorized to take all actions and execute all documents necessary or convenient to implementation of Lease No. 4925 as amended. The Public Works Director may cause recordation of the lease amendment the Official Records of the County of Santa Barbara.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: January 2022 Investment Report
RECOMMENDATION:

That Council accept the January 2022 Investment Report.

DISCUSSION:

The attached investment report includes Investment Activity, Interest Revenue, a Summary of Cash and Investments, and Investment Portfolio detail as of January 31, 2022.

ATTACHMENT: January 2022 Investment Report
PREPARED BY: Salvatore Parrilla, Finance Analyst
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 7
File Code No. 260.02

INVESTMENT ACTIVITY INVESTMENT INCOME

PURCHASES OR DEPOSITS POOLED INVESTMENTS
1/12 USTN 3,000,000 $ Interest Earned on Investments 164,542 $ 1/18 USTN 3,000,000 Amortization 10,777
1/18 USTN 3,000,0001/26 FHLB 3,000,0001/27 FFCB 3,000,0001/31 USTN 3,000,000 Total 18,000,000 $ Total 175,319 $

SALES, MATURITIES, CALLS OR WITHDRAWALS
1/6 MSFT (2,000,000) $
Total (2,000,000) $
ACTIVITY TOTAL 16,000,000 $ INCOME TOTAL 175,319 $

CITY OF SANTA BARBARA
Activity and Interest Report
January 31, 2022

ATTACHMENT
1 ENDING BALANCE AS OF December 31, 2021
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account 36,839,917 $ 0.450% 13.47% 1 (1) State of California LAIF 75,000,000 0.212% 27.42% 1 (2)Treasury Securities 32,816,801 0.877% 12.00% 1,048Federal Agency Issues - Coupon 95,974,098 0.900% 35.08% 1,152Corporate/Medium Term Notes 22,960,617 2.364% 8.39% 608Supranationals Obligations 9,977,854 0.511% 3.65% 1,275

0.757% 100.00% 628 273,569,287
Totals and Averages $ 0.757% 100.00% 628 273,569,287
Total Cash and Investments 273,569,287 $
NET CASH AND INVESTMENT ACTIVITY FOR January 2022 16,028,748 $ ENDING BALANCE AS OF January 31, 2022 Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account 37,012,562 $ 0.450% 12.78% 1 (1) State of California LAIF 75,000,000 0.234% 25.90% 1 (2)Treasury Securities 44,668,207 0.965% 15.42% 1,022Federal Agency Issues - Coupon 101,974,908 0.952% 35.21% 1,162Corporate/Medium Term Notes 20,963,997 2.345% 7.24% 632Supranationals Obligations 9,978,361 0.511% 3.45% 1,244

0.790% 100.00% 656 289,598,035
Totals and Averages $ 0.790% 100.00% 656 289,598,035
Total Cash and Investments 289,598,035 $
Note: (1) Earnings Credit Rate (ECR) is provided at the rate of 0.450% by MUFG Union Bank, N.A. to help offset banking fees. (2) The average life of the LAIF portfolio as of January 31, 2022 is 322 days.

CITY OF SANTA BARBARA
Summary of Cash and Investments
January 31, 2022
2 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS LOCAL AGENCY INVESTMENT FUNDSLOCAL AGENCY INVESTMENT FUND - - - - 0.234 0.234 75,000,000.00 75,000,000.00 75,000,000.00 0.00 Subtotal, LAIF 75,000,000.00 75,000,000.00 75,000,000.00 0.00TREASURY SECURITIES - COUPONU S TREASURY NOTE 05/03/19 04/30/24 Aaa AA+ 2.250 2.342 2,000,000.00 1,996,128.15 2,044,920.00 48,791.85U S TREASURY NOTE 06/27/19 08/31/22 Aaa AA+ 1.875 1.743 2,000,000.00 2,001,476.64 2,015,400.00 13,923.36U S TREASURY NOTE 01/22/20 02/28/23 Aaa AA+ 1.500 1.527 2,000,000.00 1,999,432.37 2,013,980.00 14,547.63U S TREASURY NOTE 01/22/20 06/30/23 Aaa AA+ 1.375 1.534 2,000,000.00 1,995,648.41 2,010,540.00 14,891.59U S TREASURY NOTE 01/12/21 09/15/23 Aaa AA+ 0.125 0.185 3,000,000.00 2,997,090.60 2,954,760.00 (42,330.60)U S TREASURY NOTE 01/21/21 10/31/22 Aaa AA+ 0.125 0.118 3,000,000.00 3,000,147.57 2,989,350.00 (10,797.57)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,986,514.67 2,875,680.00 (110,834.67)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,980,089.62 1,922,260.00 (57,829.62)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,975,031.62 1,912,740.00 (62,291.62)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,978,122.20 1,919,540.00 (58,582.20)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,981,556.32 1,933,280.00 (48,276.32)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,989,172.15 1,930,620.00 (58,552.15)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,975,862.47 1,916,320.00 (59,542.47)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,977,352.49 1,925,540.00 (51,812.49)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,987,273.62 1,934,760.00 (52,513.62)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,956,709.61 2,944,680.00 (12,029.61)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,913,923.88 2,899,110.00 (14,813.88)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.207 3,000,000.00 2,992,623.73 2,977,980.00 (14,643.73)U S TREASURY NOTE 01/31/22 01/31/24 Aaa AA+ 0.875 1.145 3,000,000.00 2,984,051.26 2,981,850.00 (2,201.26) Subtotal, Treasury Securities 45,000,000.00 44,668,207.38 44,103,310.00 (564,897.38)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 05/09/19 04/03/23 - - 2.360 2.371 2,000,000.00 1,999,759.54 2,034,280.00 34,520.46FED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,996,456.68 2,009,100.00 12,643.32FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.480 3,000,000.00 3,000,000.00 2,886,060.00 (113,940.00) Callable 09/22/23, Q FEDERAL FARM CREDIT BANK 01/31/19 10/23/23 Aaa AA+ 2.650 2.670 2,000,000.00 1,999,371.42 2,054,820.00 55,448.58 FEDERAL FARM CREDIT BANK 06/24/19 06/14/22 Aaa AA+ 1.875 1.839 2,000,000.00 2,000,256.06 2,010,760.00 10,503.94FEDERAL FARM CREDIT BANK 06/27/19 12/12/22 Aaa AA+ 1.875 1.830 2,000,000.00 2,000,744.40 2,022,960.00 22,215.60FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,943,340.00 (56,660.00) Callable 06/15/22, P FEDERAL FARM CREDIT BANK 05/06/21 05/06/25 Aaa AA+ 0.710 0.710 2,000,000.00 2,000,000.00 1,951,800.00 (48,200.00) Callable 05/06/22, PFEDERAL FARM CREDIT BANK 09/08/21 09/08/26 Aaa AA+ 0.870 0.870 2,000,000.00 2,000,000.00 1,930,580.00 (69,420.00) Callable 09/08/22, PFEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,978,320.09 2,949,210.00 (29,110.09) Callable 12/22/21, PFEDERAL FARM CREDIT BANK 12/23/21 06/23/25 Aaa AA+ 1.170 1.170 3,000,000.00 3,000,000.00 2,977,170.00 (22,830.00) Callable 03/23/22, PFEDERAL FARM CREDIT BANK 12/22/21 06/22/26 Aaa AA+ 1.390 1.390 3,000,000.00 3,000,000.00 2,975,910.00 (24,090.00) Callable 03/22/22, PFEDERAL FARM CREDIT BANK 01/27/22 01/26/27 Aaa AA+ 1.780 1.780 3,000,000.00 3,000,000.00 2,996,400.00 (3,600.00) Callable 01/26/23, PFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.580 0.580 3,000,000.00 3,000,000.00 2,904,000.00 (96,000.00) Callable 01/28/22, QFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,923,470.00 (76,530.00) S/U 0.25-0.70%, callable 01/28/22,, 1xFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,929,320.00 (70,680.00) S/U 0.25-0.75%, 1x Call 01/28/22FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,884,020.00 (115,980.00) Callable 02/25/22, AFEDERAL HOME LOAN BANK 03/16/21 03/16/26 Aaa AA+ 0.500 0.798 2,000,000.00 2,000,000.00 1,954,020.00 (45,980.00) S/U 0.50-1.00%, Callable 03/16/22 - QFEDERAL HOME LOAN BANK 05/20/21 05/20/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,957,560.00 (42,440.00) Callable 05/20/22, QFEDERAL HOME LOAN BANK 05/26/21 12/26/25 Aaa AA+ 0.900 0.900 3,000,000.00 3,000,000.00 2,926,050.00 (73,950.00) Callable 02/26/22, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,955,600.00 (44,400.00) Callable 02/26/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,945,180.00 (54,820.00) Callable 06/10/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,956,560.00 (43,440.00) Callable 06/10/22, Q

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
January 31, 2022
3 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
January 31, 2022
FEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,947,320.00 (52,680.00) Callable 03/28/22, Q FEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,953,240.00 (46,760.00) Callable 09/23/22, QFEDERAL HOME LOAN BANK 09/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,946,340.00 (53,660.00) Callable 03/28/22, QFEDERAL HOME LOAN BANK 09/28/21 09/28/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,943,600.00 (56,400.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 10/28/21 10/28/26 Aaa AA+ 0.625 1.122 2,000,000.00 2,000,000.00 1,972,900.00 (27,100.00) S/U 1.25% on 10/28/22, 1xFEDERAL HOME LOAN BANK 12/28/21 06/28/24 Aaa AA+ 0.920 0.920 3,000,000.00 3,000,000.00 2,970,630.00 (29,370.00) Callable 03/28/22, QFEDERAL HOME LOAN BANK 12/28/21 02/28/25 Aaa AA+ 1.125 1.125 3,000,000.00 3,000,000.00 2,970,570.00 (29,430.00) Callable 03/28/22, QFEDERAL HOME LOAN BANK 12/29/21 12/29/23 Aaa AA+ 0.700 0.700 3,000,000.00 3,000,000.00 2,975,670.00 (24,330.00) Callable 06/29/22, PFEDERAL HOME LOAN BANK 12/30/21 12/30/24 Aaa AA+ 1.000 1.000 3,000,000.00 3,000,000.00 2,972,910.00 (27,090.00) Callable 06/30/22, PFEDERAL HOME LOAN BANK 01/26/22 01/26/27 Aaa AA+ 1.125 1.788 3,000,000.00 3,000,000.00 2,992,590.00 (7,410.00) Callable 01/26/24, S/U 1.125%-2.250%FEDERAL HOME LOAN MTG CORP 05/25/17 05/25/22 Aaa AA+ 2.050 2.050 2,000,000.00 2,000,000.00 2,010,640.00 10,640.00 FEDERAL HOME LOAN MTG CORP 11/25/20 11/25/25 Aaa AA+ 0.625 0.625 3,000,000.00 3,000,000.00 2,916,150.00 (83,850.00) Callable on 11/25/22, A FEDERAL HOME LOAN MTG CORP 11/24/20 11/24/23 Aaa AA+ 0.320 0.320 3,000,000.00 3,000,000.00 2,957,280.00 (42,720.00) Callable 02/24/22, QFEDERAL HOME LOAN MTG CORP 09/09/20 12/09/24 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,918,730.00 (81,270.00) Callable 03/09/22, QFEDERAL NATL MORTGAGE ASSN 08/17/20 08/17/23 Aaa AA+ 0.310 0.310 3,000,000.00 3,000,000.00 2,973,180.00 (26,820.00) Callable 02/17/2022, QFEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,873,240.00 (126,760.00) Callable 08/26/22, QFEDERAL NATL MORTGAGE ASSN 11/17/20 05/17/24 Aaa AA+ 0.375 0.375 3,000,000.00 3,000,000.00 2,949,840.00 (50,160.00) Callable on 11/17/2022, Q Subtotal, Federal Agencies 102,000,000.00 101,974,908.19 100,323,000.00 (1,651,908.19) SUPRANATIONAL OBLIGATIONSINTERNATIONAL BANK FOR RECONST 01/22/21 10/28/25 Aaa AAA 0.500 0.500 3,000,000.00 3,000,000.00 2,882,460.00 (117,540.00)INTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,627.21 2,909,070.00 (90,557.21)INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,995,524.00 1,945,520.00 (50,004.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,983,209.71 1,919,780.00 (63,429.71) Subtotal, Supranationals 10,000,000.00 9,978,360.92 9,656,830.00 (321,530.92)CORPORATE/MEDIUM TERM NOTESAPPLE INC 01/24/19 05/11/22 Aaa AA+ 2.300 2.847 2,000,000.00 1,997,117.10 2,007,920.00 10,802.90APPLE INC 04/23/19 05/03/23 Aaa AA+ 2.400 2.718 2,000,000.00 1,992,481.21 2,031,760.00 39,278.79APPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,994,892.67 2,014,920.00 20,027.33APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,394.05 2,880,570.00 (118,824.05)BERKSHIRE HATHAWAY INC 04/05/18 03/15/23 Aa2 AA 2.750 3.016 2,000,000.00 1,994,489.26 2,032,220.00 37,730.74BERKSHIRE HATHAWAY FIN 12/12/18 05/15/22 Aa2 AA 3.000 3.204 2,000,000.00 1,998,889.99 2,013,320.00 14,430.01MICROSOFT CORP 05/23/19 08/08/23 Aaa AAA 2.000 2.535 2,000,000.00 1,984,655.12 2,025,000.00 40,344.88TOYOTA MOTOR CREDIT 07/27/18 07/20/23 A1 A 3.419 3.392 2,000,000.00 2,000,719.89 2,065,920.00 65,200.11TOYOTA MOTOR CREDIT 06/14/19 09/08/22 A1 A 2.150 2.182 2,000,000.00 1,999,627.15 2,017,240.00 17,612.85TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,001,730.39 2,002,380.00 649.61 Subtotal, Corporate Securities 21,000,000.00 20,963,996.83 21,091,250.00 127,253.17CHECKING ACCOUNTMUFG UNION BANK NA CHKNG ACCNT - - - - 0.450 0.450 37,012,561.90 37,012,561.90 37,012,561.90 0.00 Subtotal, Checking Account 37,012,561.90 37,012,561.90 37,012,561.90 0.00TOTALS 290,012,561.90 289,598,035.22 287,186,951.90 (2,411,083.32) Market values have been obtained from the City's safekeeping agent, MUFG Union Bank, N.A. - The Private Bank (UBTPB). 4 5

0.790

1.180

0.220

0.234
-

0.5 1.0 1.5
Jan'21
($0.100)
Feb'21
$(0.324)
Mar'21
($0.260)
Apr'21
$0.114
May'21
$0.078
Jun'21
($0.299)
Jul'21
$0.393
Aug'21
($0.138)
Sep'21
($0.360)
Oct'21
($0.720)
Nov'21
($0.281)
Dec'21
($0.351)
Jan'22
($1.550)

INVESTMENT YIELDS
City Portfolio 2-Year USTN90-Day T-Bill LAIF Rate
Market
Gain/Loss
(Dollars in
Millions)
Yield - %

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Fiscal Year 2022 Second Quarter Review
RECOMMENDATION:

That Council:

A. Receive a report from staff on the status of revenues and expenditures in relation to the budget for the six months ended December 31, 2021; B. Accept the Fiscal Year 2022 Interim Financial Statements for the six months ended December 31, 2021; and
C. Approve the proposed second quarter adjustments to Fiscal Year 2022 Appropriations and Estimated Revenues as detailed in the attached Schedule of Proposed Second Quarter Adjustments.

DISCUSSION:

Each month, staff presents the interim financial statements (Attachment 1) showing the status of revenues and expenditures in relation to budget for each of the City’s Funds.

Each quarter, the interim financial statements are expanded to include a detailed narrative analysis of the General Fund and Enterprise Funds. This narrative analysis is included in Attachment 2.

In addition to the second quarter budget analysis, staff brings forward recommended adjustments for City Council approval. These adjustments are the result of new information and/or unanticipated events that occurred since the adoption of the budget in June 2021. A listing and description of each proposed adjustment to the current year budget is provided in Attachment 3.

Staff implemented a second quarter review process to review revenue and expenditure line items to assess any material changes that may occur during the fiscal year. Given the continued economic uncertainty related to impacts from COVID-19, staff analyzed Agenda Item No. 8
File Code No. 230.04
Council Agenda Report
Fiscal Year 2022 Second Quarter Review
March 1, 2022

Page 2 ends

revenue and expenditure impacts to develop a year-end projection with the best information available at the time this report is produced.

For General Fund departments, staff reviewed their operating budget reduction targets and have identified specific plans in order to meet these targets. This approach to identify and confirm specific budget reduction line items will provide the best ability for staff to ensure required cost savings in order to achieve a balanced budget by the end of the fiscal year.

The table below summarizes the General Fund revenue and expenditure budget, including actuals through the second quarter. The total adopted revenue budget is $168.5 Million and the total adopted expenditure budget is $169.5 Million, resulting in an operating deficit of $1 Million. The revised budget includes additional expenditures from encumbrances from prior year contractual commitments.

General Fund
(in $ Millions)
FY2022
Adopted
Budget
FY2022
Revised
Budget
Q2
Actuals
FY2022
Projection
Q2 Actuals
Percent of
Revised
Budget
Revenues $168.5 $169.6 $89.4 $177.2 52.7%
Expenditures 169.5 176.1 86.3 $170.7 49.0%
Surplus/(Deficit) ($1.0) ($6.5) $3.1 $6.5
Staff is anticipating continued economic recovery from the impacts of COVID-19 that will likely result in additonal sales tax and transient occupancy tax revenues compared to last fiscal year. Department revenues are projected to be lower by $1 Million compared to the revised budget. General Fund departments are projected to implement the $6.8 Million of expenditure reduction targets included in the adopted budget, and many departments are projected to realize additional expenditure savings primarily from salary and fringe savings due to vacant positions.

Overall, staff is projecting an operating surplus in the General Fund of $6.5 Million. City Council Resolution 12-066 requires that 50% of the year-end surplus be transferred to the capital fund to implement priority capital projects; therefore, the revised projected surplus for the General Fund is $3.25 Million.

Staff is not recommending any additional budget actions at this time in order to balance the budget by fiscal year end; furthermore, staff will continue to closely monitor revenues and expenditures each month and provide a comprehensive financial projection during the third-quarter report. Also, staff will continue to monitor fund balance and reserve implications due to any additional economic changes, and present potential impacts in the third-quarter report.

Council Agenda Report
Fiscal Year 2022 Second Quarter Review
March 1, 2022

Page 3 ends

ATTACHMENTS: 1. Statement of Revenues and Expenditures Summary by Fund for the Six Months Ended December 31, 2021

2. Fiscal Year 2022 Interim Financial Statements for the Six Months Ended December 31, 2021 (Narrative Analysis)

3. Schedule of Proposed Second Quarter Adjustments
PREPARED BY: Doug Smith, Accounting Manager
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office

Page 1 ends

ATTACHMENT 1
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
GENERAL FUND (pages 3-7)
Revenue 169,608,948 89,411,508 53,651 80,251,091 52.7% 71,497,660 Expenditures 176,158,357 86,302,420 5,397,628 84,458,309 52.1% 81,189,105 Addition to / (use of) reserves (6,549,409) 3,109,089 (5,451,279) (9,691,445) SOLID WASTE FUND (page 9)
Revenue 31,602,045 16,863,260 - 14,738,785 53.4% 14,804,720 Expenditures 30,719,105 14,042,511 189,207 16,487,387 46.3% 13,508,149 Addition to / (use of) reserves 882,940 2,820,749 (189,207) 1,296,571 WATER OPERATING FUND (page 10)
Revenue 64,257,072 35,462,815 - 28,794,257 55.2% 34,003,213 Expenditures 69,413,711 29,518,975 6,031,425 33,863,310 51.2% 29,088,492 Addition to / (use of) reserves (5,156,639) 5,943,840 (6,031,425) 4,914,721 WASTEWATER OPERATING FUND (page 11)
Revenue 25,635,664 12,946,681 - 12,688,983 50.5% 12,263,681 Expenditures 26,374,869 11,065,580 2,218,581 13,090,709 50.4% 9,261,797 Addition to / (use of) reserves (739,205) 1,881,101 (2,218,581) 3,001,884 DOWNTOWN PARKING FUND (page 12)
Revenue 7,521,906 3,400,028 - 4,121,878 45.2% 2,324,815 Expenditures 8,377,760 3,773,357 829,469 3,774,934 54.9% 4,526,929 Addition to / (use of) reserves (855,854) (373,329) (829,469) (2,202,114) AIRPORT OPERATING FUND (page 13)
Revenue 27,465,652 12,447,360 - 15,018,292 45.3% 14,399,169 Expenditures 28,721,445 12,501,998 2,663,720 13,555,728 52.8% 11,562,724 Addition to / (use of) reserves (1,255,793) (54,638) (2,663,720) 2,836,445 GOLF COURSE FUND (page 14)
Revenue 3,385,220 1,976,789 - 1,408,431 58.4% 2,082,762 Expenditures 3,107,696 1,390,733 1,423,402 293,561 90.6% 1,340,309 Addition to / (use of) reserves 277,524 586,056 (1,423,402) 742,453 FACILITIES MANAGEMENT FUND (page 15)
Revenue 6,647,183 3,050,426 - 3,596,757 45.9% 3,149,495 Expenditures 7,272,791 3,177,251 481,025 3,614,515 50.3% 3,628,496 Addition to / (use of) reserves (625,608) (126,825) (481,025) (479,001)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

Page 2 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year) FLEET REPLACEMENT FUND (page 16)
Revenue 3,496,596 1,705,676 - 1,790,920 48.8% 1,761,739 Expenditures 6,747,667 1,399,521 1,631,286 3,716,860 44.9% 1,517,855 Addition to / (use of) reserves (3,251,071) 306,154 (1,631,286) 243,884 FLEET MAINTENANCE FUND (page 17)
Revenue 2,986,453 1,493,772 - 1,492,681 50.0% 1,471,353 Expenditures 3,169,206 1,468,457 332,956 1,367,792 56.8% 1,356,790 Addition to / (use of) reserves (182,753) 25,315 (332,956) 114,562 SELF INSURANCE TRUST FUND (page 18)
Revenue 10,404,522 4,898,261 - 5,506,261 47.1% 4,319,764 Expenditures 10,438,418 5,533,571 155,407 4,749,439 54.5% 4,404,293 Addition to / (use of) reserves (33,896) (635,310) (155,407) (84,530) INFORMATION TECHNOLOGY FUND (page 19)
Revenue 4,520,985 2,277,991 - 2,242,994 50.4% 1,930,321 Expenditures 4,639,575 2,748,025 81,438 1,810,112 61.0% 2,265,772 Addition to / (use of) reserves (118,590) (470,033) (81,438) (335,451) WATERFRONT OPERATING FUND (page 20)
Revenue 15,659,001 8,983,888 - 6,675,113 57.4% 7,814,625 Expenditures 15,884,875 7,665,426 901,629 7,317,819 53.9% 7,985,036 Addition to / (use of) reserves (225,874) 1,318,462 (901,629) (170,411) SANTA BARBARA CLEAN ENERGY FUND (page 21)
Revenue 12,523,116 1,428,751 - 11,094,364 11.4% -
Expenditures 10,222,025 1,151,872 55,845 9,014,308 11.8% 71,489 Addition to / (use of) reserves 2,301,090 276,879 (55,845) (71,489) ENERGY MANAGEMENT FUND (page 22)
Revenue 2,538,071 1,354,137 - 1,183,934 53.4% 1,205,083 Expenditures 2,784,561 897,781 188,801 1,697,978 39.0% 721,271 Addition to / (use of) reserves (246,490) 456,355 (188,801) 483,812

TOTAL FOR ALL FUNDS
Revenue 388,252,433 197,701,344 53,651 190,604,741 50.9% 173,028,400 Expenditures 404,032,059 182,637,478 22,581,819 198,812,762 50.8% 172,428,507 Addition to / (use of) reserves (15,779,626) 15,063,866 (22,635,470) 599,893 ** It is City policy to adopt a balanced budget. In most cases, encumbrance balances exist at year-end. These encumbrance balances are obligations of each fund and must be reported at the beginning of each fiscal year. In addition, a corresponding appropriations entry must be made in order to accommodate the 'carried-over' encumbrance amount. Most differences between budgeted annual revenues and expenses are due to these encumbrance carryovers.

Page 3 ends

Revised YTD Remaining Percent Previous Change Over
Budget Actual Balance Received YTD Prior Year
TAXES
Sales and Use 23,239,045 14,591,000 8,648,045 62.8% 11,436,706 27.6% Measure C Sales Tax 24,988,418 15,347,468 9,640,950 61.4% 12,077,308 27.1% Property Taxes 42,347,386 14,417,238 27,930,148 34.0% 13,743,452 4.9% Utility Users Tax 7,315,292 3,805,251 3,510,041 52.0% 3,656,786 4.1% Transient Occupancy Tax 19,500,000 14,825,408 4,674,592 76.0% 8,041,528 84.4% Business License 2,556,359 1,259,019 1,297,340 49.3% 1,118,171 12.6% Cannabis Excise Tax 1,847,469 925,419 922,050 50.1% 845,317 9.5% Real Property Transfer Tax 923,776 718,248 205,528 77.8% 539,928 33.0% Total Tax Revenues 122,717,745 65,889,050 56,828,695 53.7% 51,459,197 28.0%

LICENSES & PERMITS
Licenses & Permits 151,666 90,274 61,392 59.5% 88,608 1.9% Total 151,666 90,274 61,392 59.5% 88,608 1.9%

FINES & FORFEITURES
Police 2,468,500 1,467,804 1,000,696 59.5% 874,047 67.9% Other Fines & Forfeitures 665,602 23,773 641,829 3.6% 25,812 -7.9% Total 3,134,102 1,491,577 1,642,525 47.6% 899,858 65.8%

USE OF MONEY & PROPERTY
Investment Income 312,661 174,488 138,173 55.8% 205,446 -15.1% Rents & Concessions 1,008,355 391,354 617,001 38.8% 173,612 125.4% Total 1,321,016 565,842 755,174 42.8% 379,058 49.3%

INTERGOVERNMENTAL
Library 1,139,127 165,460 973,667 14.5% 681,233 -75.7%
Fire 1,528,000 625,004 902,996 40.9% 85,821 628.3%
Other Intergovernmental 1,014,487 324,509 689,978 32.0% 1,362,512 -76.2% Total 3,681,614 1,114,973 2,566,641 30.3% 2,129,566 -47.6%

FEES & SERVICE CHARGES
Community Development 5,555,380 3,878,013 1,677,367 69.8% 2,509,020 54.6% Parks & Recreation 3,309,994 1,920,295 1,389,699 58.0% 992,409 93.5% Other Service Charges 3,896,007 1,625,773 2,270,234 41.7% 1,427,062 13.9% Total 12,761,381 7,424,081 5,337,300 58.2% 4,928,491 50.6%

OTHER REVENUES
Interfund Charges & Reimbursement 11,001,907 4,946,606 6,055,301 45.0% 4,876,856 1.4% Overhead Indirect Allocations 9,025,888 4,493,529 4,532,359 49.8% 4,307,645 4.3% Interfund Transfers 1,810,258 947,058 863,200 52.3% 319,992 196.0% Interfund Loans 24,140 12,070 12,070 50.0% 12,070 0.0%
Miscellenous 132,692 358,286 (225,594) 270.0% 206,272 73.7% Donations 139,709 44,789 94,920 32.1% 50,974 -12.1%
Franchise Fees 3,706,830 2,033,373 1,673,457 54.9% 1,839,072 10.6% Total 25,841,424 12,835,711 13,005,713 49.7% 11,612,882 10.5% Subtotal Non-Tax Revenues 46,891,203 23,522,458 23,368,745 50.2% 20,038,463 17.4% TOTAL REVENUES 169,608,948 89,411,508 80,197,440 52.7% 71,497,660 25.1%

CITY OF SANTA BARBARA
General Fund
Interim Statement of Budgeted and Actual Revenues
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

Page 4 ends

YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD

GENERAL GOVERNMENT
Mayor & City Council
MAYOR & CITY COUNCIL 975,974 456,097 - 519,878 46.7% 450,634 ARTS AND COMMUNITY PROMOTIONS 2,622,626 1,177,243 1,395,846 49,538 98.1% 1,430,984 Total 3,598,600 1,633,339 1,395,846 569,415 84.2% 1,881,618 City Attorney
CITY ATTORNEY-ADMINISTRATION 1,550,969 501,325 556,339 493,305 68.2% 453,286 CITY ATTORNEY-ADVISORY 1,446,858 728,416 - 718,442 50.3% 668,978 CITY ATTORNEY-CIVIL LITIGATION 1,352,424 530,594 - 821,829 39.2% 652,606 CITY ATTORNEY-CODE ENFORCEMENT 460,595 245,969 - 214,625 53.4% 226,884 Total 4,810,845 2,006,304 556,339 2,248,202 53.3% 2,001,754 Administration
CITY ADMINISTRATOR 2,567,516 992,631 128,338 1,446,547 43.7% 1,047,352 EMPLOYEE RELATIONS 344,138 115,950 81,701 146,488 57.4% 127,016 CITY TV 641,236 298,446 111,686 231,103 64.0% 259,631
CITY CLERK 1,075,004 369,597 12,626 692,782 35.6% 289,016 ELECTIONS 35,000 - - 35,000 0.0% 7,018
Total 4,662,894 1,776,624 334,351 2,551,920 45.3% 1,730,032 Human Resources
HUMAN RESOURCES 1,879,001 860,269 53,976 964,757 48.7% 780,265 EMPLOYEE DEVELOPMENT 44,447 2,708 - 41,739 6.1% 8,027
Total 1,923,448 862,977 53,976 1,006,496 47.7% 788,292
Finance
ADMINISTRATION 362,842 211,069 53,321 98,453 72.9% 150,108 REVENUE & CASH MANAGEMENT 550,472 270,669 11,584 268,219 51.3% 245,240 CASHIERING & COLLECTION 618,100 291,894 - 326,206 47.2% 276,181 LICENSES & PERMITS 562,195 223,771 3,935 334,489 40.5% 221,578 BUDGET MANAGEMENT 546,104 281,030 - 265,075 51.5% 270,879 ACCOUNTING 1,032,004 486,885 56,669 488,450 52.7% 490,744 PAYROLL 472,293 248,729 - 223,563 52.7% 217,938
ACCOUNTS PAYABLE 260,466 134,828 - 125,639 51.8% 127,288 CITY BILLING & CUSTOMER SERVICE 774,094 302,157 2,548 469,389 39.4% 258,298 PURCHASING 873,018 431,921 158 440,938 49.5% 428,554
CENTRAL WAREHOUSE 234,511 118,718 - 115,793 50.6% 109,446 MAIL SERVICES 154,384 72,531 5,764 76,089 50.7% 74,347
Total 6,440,482 3,074,201 133,980 3,232,301 49.8% 2,870,601 TOTAL GENERAL GOVERNMENT 21,436,270 9,353,444 2,474,491 9,608,334 55.2% 9,272,298

CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

Page 5 ends

YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD

CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

PUBLIC SAFETY
Police
CHIEF'S STAFF (1,032,776) 926,686 19,852 (1,979,314) -91.6% 416,167 BUSINESS OFFICE 727,247 270,081 4,927 452,240 37.8% 268,900 RECORDS BUREAU 1,995,696 881,082 2,359 1,112,256 44.3% 909,312 STRATEGIC OPERATIONS AND PERSONNEL 1,699,992 965,151 168,289 566,552 66.7% 989,027 PROPERTY ROOM 263,397 102,180 - 161,217 38.8% 130,980
TRAINING, RECRUITMENT AND WELLNESS 1,803,345 819,352 135,914 848,079 53.0% 577,928 RANGE AND EQUIPMENT 1,468,880 743,329 15,653 709,898 51.7% 642,369 COMMUNITY & MEDIA RELATIONS 500,694 186,309 - 314,385 37.2% 178,691 INFORMATION TECHNOLOGY/CRIME ANALYSIS 1,682,962 1,030,268 40,234 612,459 63.6% 953,555 CRIMINAL INVESTIGATIONS & INTERNAL OP'S 6,184,585 2,705,151 1,200 3,478,234 43.8% 2,927,380 CRIME LAB 161,786 78,682 - 83,104 48.6% 84,038
FIELD OPERATIONS DIVISION 21,515,335 9,417,148 4,037 12,094,150 43.8% 9,704,952 TRAFFIC 690,535 615,608 - 74,928 89.1% 285,407
SPECIAL EVENTS 577,248 444,761 2,790 129,697 77.5% 131,177 STREET CRIMES UNIT 1,334,643 642,277 - 692,365 48.1% 678,381 SPECIAL ENFORCEMENT TEAM 816,022 478,105 - 337,917 58.6% 535,804 PARKING AND STREET SWEEPING 377,057 188,237 - 188,820 49.9% 173,970 PARKING ENFORCEMENT 1,407,378 461,618 138,656 807,104 42.7% 634,057 COMBINED COMMUNICATIONS CENTER 3,004,092 1,690,883 - 1,313,209 56.3% 1,627,445 ANIMAL CONTROL 903,665 343,012 10,176 550,477 39.1% 340,088 Total 46,081,784 22,989,920 544,087 22,547,777 51.1% 22,189,629 Fire
ADMINISTRATION 1,167,135 567,329 - 599,806 48.6% 516,811 EMERGENCY SERVICES AND PUBLIC ED 493,941 246,896 - 247,045 50.0% 223,115 PREVENTION 1,364,541 617,737 525 746,280 45.3% 714,618
WILDLAND FIRE MITIGATION PROGRAM 549,627 122,295 11,227 416,105 24.3% 121,659 OPERATIONS 25,055,824 13,813,090 149,845 11,092,890 55.7% 13,957,597 TRAINING AND RECRUITMENT 821,690 327,476 - 494,213 39.9% 310,394 ARFF 2,847,019 1,550,785 - 1,296,234 54.5% 1,432,717
Total 32,299,777 17,245,608 161,596 14,892,572 53.9% 17,276,911 TOTAL PUBLIC SAFETY 78,381,561 40,235,528 705,683 37,440,349 52.2% 39,466,540

PUBLIC WORKS
Public Works
ADMINISTRATION 1,425,256 629,065 18,990 777,201 45.5% 549,064 ENGINEERING SVCS 6,342,121 2,889,821 102,141 3,350,158 47.2% 2,803,048 PUBLIC RT OF WAY MGMT 1,810,855 793,568 40,901 976,386 46.1% 731,516 ENVIRONMENTAL PROGRAMS 996,355 336,560 81,767 578,028 42.0% 205,549 Total 10,574,587 4,649,015 243,799 5,681,773 46.3% 4,289,177 TOTAL PUBLIC WORKS 10,574,587 4,649,015 243,799 5,681,773 46.3% 4,289,177

Page 6 ends

YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD

CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

COMMUNITY SERVICES
Parks & Recreation
REC PROGRAM MGMT 530,589 304,845 4,121 221,623 58.2% 297,787 FACILITIES & SPECIAL EVENTS 1,315,871 584,173 174,906 556,792 57.7% 453,323 YOUTH ACTIVITIES 1,412,918 663,405 1,810 747,703 47.1% 429,351 ACTIVE ADULTS 876,402 426,738 9,954 439,711 49.8% 350,911 AQUATICS 1,916,866 1,003,749 144,366 768,750 59.9% 965,247 SPORTS 681,063 320,802 22,597 337,665 50.4% 193,478
TENNIS 370,714 195,748 2,615 172,351 53.5% 160,498
NEIGHBORHOOD & OUTREACH SERV 1,104,618 491,608 10,938 602,072 45.5% 452,663 ADMINISTRATION 1,001,762 521,683 6,439 473,640 52.7% 458,103 PROJECT MANAGEMENT TEAM 719,048 250,096 52,969 415,983 42.1% 244,936 PARK OPERATIONS MANAGEMENT 826,514 312,153 14,178 500,183 39.5% 433,470 GROUNDS & FACILITIES MAINTENANCE 5,532,539 2,611,578 145,138 2,775,822 49.8% 2,602,019 FORESTRY 1,430,817 694,105 7,846 728,866 49.1% 657,826
BEACH MAINTENANCE 141,703 72,471 7,521 61,711 56.5% 32,495 MEDIANS PARKWAYS & CONTRACTS 565,570 251,199 92,932 221,439 60.8% 173,122 Total 18,426,993 8,704,353 698,329 9,024,311 51.0% 7,905,228 Library
ADMINISTRATION 711,247 326,484 40,548 344,215 51.6% 286,762 CENTRAL LIBRARY 5,334,044 2,244,404 136,382 2,953,258 44.6% 1,961,663 EASTSIDE LIBRARY 354,477 151,933 5,669 196,875 44.5% 115,168 LIBRARY ON THE GO 117,343 48,224 - 69,119 41.1% -
Total 6,517,111 2,771,044 182,599 3,563,468 45.3% 2,363,593 TOTAL COMMUNITY SERVICES 24,944,104 11,475,397 880,928 12,587,779 49.5% 10,268,820

COMMUNITY DEVELOPMENT
Community Development
ADMINISTRATION 1,526,055 700,157 28,953 796,946 47.8% 560,662 RENTAL HOUSING MEDIATION 284,959 148,350 - 136,609 52.1% 136,825 HUMAN SERVICES 1,035,172 348,360 515,941 170,871 83.5% 351,850 LONG RANGE PLAN & SPEC STUDY 1,025,531 522,261 323 502,947 51.0% 526,161 DEVEL & ENVIRONMENTAL REVIEW 1,618,900 752,270 22,904 843,726 47.9% 707,165 ZONING INFO & ENFORCEMENT 1,542,278 685,628 36,740 819,910 46.8% 708,906 DESIGN REV & HIST PRESERVATION 1,566,419 772,165 3,717 790,537 49.5% 652,044 BLDG INSP & CODE ENFORCEMENT 2,129,213 890,496 77,631 1,161,086 45.5% 831,080 RECORDS ARCHIVES & CLER SVCS 772,449 332,495 52,689 387,265 49.9% 328,577 BLDG COUNTER & PLAN REV SVCS 2,483,649 1,045,508 282,029 1,156,112 53.5% 1,106,486 Total 13,984,624 6,197,688 1,020,927 6,766,009 51.6% 5,909,755 TOTAL COMMUNITY DEVELOPMENT 13,984,624 6,197,688 1,020,927 6,766,009 51.6% 5,909,755

Page 7 ends

YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD

CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

SUSTAINABILITY AND RESILIENCE
Sustainability and Resilience
ADMINISTRATION 250,068 28,425 71,800 149,843 40.1% 17,938 Total 250,068 28,425 71,800 149,843 40.1% 17,938
TOTAL SUSTAINABILITY AND RESILIENCE 250,068 28,425 71,800 149,843 40.1% 17,938

NON-DEPARTMENTAL
Non-Departmental
ANTICIPATED SALARY SAVINGS (2,100,000) - - (2,100,000) 0.0% - TRANSFERS OUT 2,713,725 1,536,214 - 1,177,512 56.6% 319,700 CAPITAL OUTLAY TRANSFER 25,788,418 12,826,709 - 12,961,709 49.7% 11,644,877 APPROP. RESERVE 185,000 - - 185,000 0.0% -
Total 26,587,143 14,362,923 - 12,224,221 54.0% 11,964,576 TOTAL NON-DEPARTMENTAL 26,587,143 14,362,923 - 12,224,221 54.0% 11,964,576 TOTAL EXPENDITURES 176,158,357 86,302,420 5,397,628 84,458,309 52.1% 81,189,105 ** The legal level of budgetary control is at the department level for the General Fund. Therefore, as long as the department as a whole is within budget, budgetary compliance has been achieved. The City actively monitors the budget status of each department and takes measures to address potential over budget situations before they occur.

For Enterprise and Internal Service Funds, the level of budgetary control is at the fund level. The City also monitors and addresses these fund types for potential over budget situations.

Included in the FY22 adopted and revised General Fund budgets are departmental targeted savings that were loaded as negative expenditures within one program of each department. This has the impact of distorting the annual budget and variances for those programs until such time as the department reallocates the negative expenditure against other approved appropriations. This task is scheduled to be completed by January 31, 2022, and has no impact on the total appropriations by General Fund department as adopted and approved by council.

Page 8 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

TRAFFIC SAFETY FUND
Revenue 233,000 112,029 - 120,971 48.1% 75,840
Expenditures 233,000 112,029 - 120,971 48.1% 75,840
Revenue Less Expenditures - - - - -

CREEK RESTORATION/WATER QUALITY IMPRVMT
Revenue 4,010,347 3,023,889 - 986,458 75.4% 3,265,440
Expenditures 4,335,949 1,726,044 524,688 2,085,217 51.9% 1,561,192 Revenue Less Expenditures (325,602) 1,297,845 (524,688) (1,098,759) 1,704,247

COMMUNITY DEVELOPMENT BLOCK GRANT
Revenue 2,014,181 313,621 - 1,700,560 15.6% 756,245
Expenditures 2,514,258 576,220 1,026,367 911,671 63.7% 961,186 Revenue Less Expenditures (500,077) (262,600) (1,026,367) 788,889 (204,941)

COUNTY LIBRARY
Revenue 1,073,708 2,310 - 1,071,398 0.2% 258,289
Expenditures 1,068,933 386,801 18,281 663,851 37.9% 369,528 Revenue Less Expenditures 4,775 (384,491) (18,281) 407,547 (111,239)

STREETS FUND
Revenue 12,243,914 6,327,106 - 5,916,808 51.7% 6,259,176 Expenditures 12,400,631 5,864,931 194,850 6,340,851 48.9% 5,606,471 Revenue Less Expenditures (156,717) 462,176 (194,850) (424,043) 652,705

MEASURE A FUND
Revenue 4,055,709 2,190,455 - 1,865,254 54.0% 1,813,404 Expenditures 4,180,416 1,899,564 315,518 1,965,333 53.0% 1,584,763 Revenue Less Expenditures (124,707) 290,891 (315,518) (100,080) 228,640

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Special Revenue Funds
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

Page 9 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service charges 31,266,595 15,939,442 - 15,327,153 51.0% 14,366,607 Other Fees & Charges 30,000 892,109 - (862,109) 2973.7% 144,440 Investment Income 23,645 15,215 - 8,430 64.3% 15,725
Grants 23,570 23,211 - 359 98.5% 23,145
Miscellaneous 258,235 (6,718) - 264,953 -2.6% 254,804
TOTAL REVENUES 31,602,045 16,863,260 - 14,738,785 53.4% 14,804,720

EXPENSES
Salaries & Benefits 1,524,648 747,405 - 777,243 49.0% 642,909 Materials, Supplies & Services 27,443,925 13,205,772 167,301 14,070,853 48.7% 12,663,590 Special Projects 1,452,286 51,901 9,670 1,390,715 4.2% 23,260 Transfers-Out 50,000 25,000 - 25,000 50.0% 25,000
Capital Outlay Transfers 1,946 973 - 973 50.0% 104,025
Equipment 185,000 11,459 12,237 161,304 12.8% 49,366
Other 40,000 - - 40,000 0.0% -
Appropriated Reserve 21,300 - - 21,300 0.0% -
TOTAL EXPENSES 30,719,105 14,042,511 189,207 16,487,387 46.3% 13,508,149 Revenue Less Expense 882,940 2,820,749 (189,207) (1,748,602) 1,296,571

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

SOLID WASTE FUND

Page 10 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Water Sales- Metered 57,330,939 32,232,158 - 25,098,781 56.2% 31,116,849 Service Charges 208,765 164,140 - 44,625 78.6% 131,825
Cater JPA Treatment Charges 2,359,556 943,641 - 1,415,915 40.0% 1,314,089 Investment Income 684,620 336,994 - 347,626 49.2% 500,530 Reimbursements 3,310,043 1,195,543 - 2,114,500 36.1% 393,101 Miscellaneous 227,206 454,396 - (227,190) 200.0% 266,876 Operating Transfers-In 135,943 135,943 - - 100.0% 279,943 TOTAL REVENUES 64,257,072 35,462,815 - 28,794,257 55.2% 34,003,213

EXPENSES
Salaries & Benefits 12,755,762 6,018,326 - 6,737,436 47.2% 5,745,135 Materials, Supplies & Services 17,729,372 6,186,857 5,617,708 5,924,806 66.6% 7,143,893 Special Projects 695,792 170,411 284,546 240,836 65.4% 105,642 Water Purchases 9,228,839 4,415,664 - 4,813,175 47.8% 3,931,878 Debt Service 9,190,636 5,469,967 - 3,720,669 59.5% 5,420,258 Capital Outlay Transfers 19,122,471 7,114,135 - 12,008,336 37.2% 6,604,611 Equipment 239,755 32,848 17,981 188,926 21.2% 36,781
Capitalized Fixed Assets 259,783 79,292 111,190 69,301 73.3% 70,136 Other 41,300 31,475 - 9,825 76.2% 30,159
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 69,413,711 29,518,975 6,031,425 33,863,310 51.2% 29,088,492 Revenue Less Expense (5,156,639) 5,943,840 (6,031,425) (5,069,054) 4,914,721 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

WATER OPERATING FUND
from the operating fund is shown in the Capital Transfers.

Page 11 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 24,869,491 12,619,422 - 12,250,069 50.7% 11,808,836 Fees 548,856 225,194 - 323,662 41.0% 143,773
Investment Income 151,245 67,093 - 84,152 44.4% 112,529 Rents & Concessions 61,072 30,536 - 30,536 50.0% 30,536 Miscellaneous 5,000 4,437 - 563 88.7% 16,500
Operating Transfers-In - - - - 0.0% 151,507
TOTAL REVENUES 25,635,664 12,946,681 - 12,688,983 50.5% 12,263,681

EXPENSES
Salaries & Benefits 7,776,281 3,768,220 - 4,008,061 48.5% 3,800,373 Materials, Supplies & Services 9,047,278 3,894,436 1,924,169 3,228,673 64.3% 3,433,741 Special Projects 680,865 243,411 289,101 148,353 78.2% 175,875 Debt Service 3,558,338 600,166 - 2,958,172 16.9% 620,292 Capital Outlay Transfers 4,939,840 2,469,920 - 2,469,920 50.0% 1,150,549 Equipment 106,000 45,042 1,653 59,304 44.1% 29,175
Capitalized Fixed Assets 111,767 42,899 658 68,210 39.0% 50,307 Other 4,500 1,485 3,000 15 99.7% 1,485
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 26,374,869 11,065,580 2,218,581 13,090,709 50.4% 9,261,797 Revenue Less Expense (739,205) 1,881,101 (2,218,581) (401,726) 3,001,884 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

WASTEWATER OPERATING FUND
from the operating fund is shown in the Capital Transfers.

Page 12 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Improvement Tax 750,000 470,564 - 279,436 62.7% 296,280 Parking Fees 5,541,456 2,241,326 - 3,300,130 40.4% 1,473,657 Other Fees & Charges 12,925 17,078 - (4,153) 132.1% 7,618 Investment Income 53,545 14,220 - 39,325 26.6% 42,906
Rents & Concessions 136,820 81,880 - 54,940 59.8% 69,880 Miscellaneous 295,466 209,113 - 86,353 70.8% 143,627
Operating Transfers-In 731,694 365,847 - 365,847 50.0% 290,847 TOTAL REVENUES 7,521,906 3,400,028 - 4,121,878 45.2% 2,324,815

EXPENSES
Salaries & Benefits 4,139,845 2,008,178 - 2,131,667 48.5% 1,973,315 Materials, Supplies & Services 3,449,178 1,458,835 534,346 1,455,997 57.8% 1,149,338 Special Projects 497,659 190,210 288,680 18,769 96.2% 281,981 Capital Outlay Transfers 226,425 113,213 - 113,213 50.0% 1,108,223 Equipment 54,653 2,921 6,444 45,289 17.1% 14,073
Appropriated Reserve 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 8,377,760 3,773,357 829,469 3,774,934 54.9% 4,526,929 Revenue Less Expense (855,854) (373,329) (829,469) 346,944 (2,202,114) NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

DOWNTOWN PARKING FUND
from the operating fund is shown in the Capital Transfers.

Page 13 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Leases-Commercial/Industrial 5,531,982 2,628,032 - 2,903,950 47.5% 2,534,968 Leases-Terminal 5,551,935 4,568,012 - 983,923 82.3% 1,601,098 Leases-Non-Commercial Aviation 4,562,386 2,482,837 - 2,079,549 54.4% 2,128,876 Leases-Commercial Aviation 5,121,457 2,524,375 - 2,597,082 49.3% 1,885,318 Investment Income 109,045 70,594 - 38,451 64.7% 73,377
Grants 6,344,534 - - 6,344,534 0.0% 5,003,428
Service Charges - 637 - (637) 100.0% -
Miscellaneous 119,196 47,755 - 71,441 40.1% 46,675
Operating Transfers-In 125,117 125,117 - - 100.0% 1,125,428 TOTAL REVENUES 27,465,652 12,447,360 - 15,018,292 45.3% 14,399,169

EXPENSES
Salaries & Benefits 9,136,921 4,357,947 - 4,778,975 47.7% 3,838,905 Materials, Supplies & Services 11,506,016 4,914,905 2,172,007 4,419,104 61.6% 4,102,846 Special Projects 2,241,696 252,889 449,171 1,539,636 31.3% 485 Transfer-Out 250,000 - - 250,000 0.0% 289,350
Debt Service 1,555,750 777,875 - 777,875 50.0% 776,500
Capital Outlay Transfers 3,698,242 2,131,689 - 1,566,553 57.6% 2,486,648 Equipment 227,860 66,692 42,541 118,627 47.9% 67,990
Appropriated Reserve 104,959 - - 104,959 0.0% -
TOTAL EXPENSES 28,721,445 12,501,998 2,663,720 13,555,728 52.8% 11,562,724 Revenue Less Expense (1,255,793) (54,638) (2,663,720) 1,462,564 2,836,445 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

AIRPORT OPERATING FUND
from the operating fund is shown in the Capital Transfers.

Page 14 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Fees & Card Sales 3,169,264 1,882,013 - 1,287,251 59.4% 1,982,906 Investment Income 10,745 8,289 - 2,456 77.1% 7,587
Rents & Concessions 205,211 87,676 - 117,535 42.7% 84,011 Miscellaneous - (1,189) - 1,189 100.0% 8,258
TOTAL REVENUES 3,385,220 1,976,789 - 1,408,431 58.4% 2,082,762

EXPENSES
Salaries & Benefits 82,612 39,320 - 43,292 47.6% 33,518 Materials, Supplies & Services 2,773,018 1,246,095 1,423,402 103,522 96.3% 1,205,828 Debt Service 41,430 - - 41,430 0.0% -
Capital Outlay Transfers 210,636 105,318 - 105,318 50.0% 100,963 TOTAL EXPENSES 3,107,696 1,390,733 1,423,402 293,561 90.6% 1,340,309 Revenue Less Expense 277,524 586,056 (1,423,402) 1,114,870 742,453 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

GOLF COURSE FUND

Page 15 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 3,087,902 1,543,952 - 1,543,950 50.0% 1,561,454 Work Orders - Bldg Maint. 3,548,781 1,504,872 - 2,043,909 42.4% 1,586,632 Miscellaneous 10,500 1,602 - 8,898 15.3% 1,409
TOTAL REVENUES 6,647,183 3,050,426 - 3,596,757 45.9% 3,149,495

EXPENSES
Salaries & Benefits 4,438,079 1,968,874 - 2,469,204 44.4% 2,086,509 Materials, Supplies & Services 1,899,329 871,951 271,720 755,658 60.2% 776,857 Special Projects 363,120 95,516 209,305 58,299 83.9% 80,907 Capital Outlay Transfers 477,198 238,599 - 238,599 50.0% 678,281 Equipment 10,000 2,311 - 7,689 23.1% 5,943
Appropriated Reserve 85,065 - - 85,065 0.0% -
TOTAL EXPENSES 7,272,791 3,177,251 481,025 3,614,515 50.3% 3,628,496 Revenue Less Expense (625,608) (126,825) (481,025) (17,758) (479,001)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

FACILITIES MANAGEMENT FUND

Page 16 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Vehicle Rental Charges 3,063,053 1,504,400 - 1,558,653 49.1% 1,480,931 Investment Income 168,561 61,138 - 107,423 36.3% 96,082 Rents & Concessions 123,982 59,801 - 64,181 48.2% 77,967 Miscellaneous 112,000 51,336 - 60,664 45.8% 106,758
Operating Transfers-In 29,000 29,000 - - 100.0% -
TOTAL REVENUES 3,496,596 1,705,676 - 1,790,920 48.8% 1,761,739

EXPENSES
Salaries & Benefits 247,988 97,373 - 150,614 39.3% 116,134 Materials, Supplies & Services 19,553 8,742 - 10,811 44.7% 9,465 Special Projects 75,000 - - 75,000 0.0% -
Transfer-Out - - - - 0.0% 55,668
Capital Outlay Transfers 1,054,838 540,332 - 514,506 51.2% 46,690 Capitalized Fixed Assets 5,350,289 753,074 1,631,286 2,965,929 44.6% 1,289,899 TOTAL EXPENSES 6,747,667 1,399,521 1,631,286 3,716,860 44.9% 1,517,855 Revenue Less Expense (3,251,071) 306,154 (1,631,286) (1,925,939) 243,884

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

FLEET REPLACEMENT FUND

Page 17 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Vehicle Maintenance Charges 2,921,453 1,454,004 - 1,467,449 49.8% 1,403,421 Reimbursements 5,000 2,500 - 2,500 50.0% 26,155
Miscellaneous 60,000 37,268 - 22,732 62.1% 41,777
TOTAL REVENUES 2,986,453 1,493,772 - 1,492,681 50.0% 1,471,353

EXPENSES
Salaries & Benefits 1,646,976 748,627 - 898,349 45.5% 752,796 Materials, Supplies & Services 1,375,257 638,758 228,501 507,997 63.1% 584,332 Special Projects 147,205 36,850 70,958 39,397 73.2% 10,979 Debt Service - - - - 0.0% 7,290
Capital Outlay Transfers 31,934 30,467 - 1,467 95.4% -
Equipment 7,147 764 - 6,383 10.7% 970
Capitalized Fixed Assets 46,488 12,991 33,497 - 100.0% 424 Appropriated Reserve (85,800) - - (85,800) 0.0% -
TOTAL EXPENSES 3,169,206 1,468,457 332,956 1,367,792 56.8% 1,356,790 Revenue Less Expense (182,753) 25,315 (332,956) 124,889 114,562

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

FLEET MAINTENANCE FUND

Page 18 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Insurance Premiums 5,056,793 2,046,526 - 3,010,267 40.5% 1,724,009 Workers' Compensation Premiums 4,219,100 2,082,050 - 2,137,050 49.3% 2,066,356 OSH Charges 290,230 145,115 - 145,115 50.0% 137,948
Unemployment Insurance Premium 277,529 138,765 - 138,764 50.0% 113,780 Investment Income 53,545 14,464 - 39,081 27.0% 39,217
Miscellaneous - 1,930 - (1,930) 100.0% 200,541
Operating Transfers-In 507,325 469,412 - 37,913 92.5% 37,913 TOTAL REVENUES 10,404,522 4,898,261 - 5,506,261 47.1% 4,319,764

EXPENSES
Salaries & Benefits 744,822 392,395 - 352,427 52.7% 360,746 Materials, Supplies & Services 9,692,777 5,140,767 155,407 4,396,603 54.6% 4,043,547 Capital Outlay Transfers 818 409 - 409 50.0% -
TOTAL EXPENSES 10,438,418 5,533,571 155,407 4,749,439 54.5% 4,404,293 Revenue Less Expense (33,896) (635,310) (155,407) 756,821 (84,530) The Self Insurance Trust Fund is an internal service fund of the City, which accounts for the cost of providing workers' compensation, property and liability insurance as well as unemployment insurance and certain self-insured employee benefits on a city-wide basis. Internal Service Funds charge other funds for the cost of providing their specific services.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

SELF INSURANCE TRUST FUND

Page 19 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service charges 4,485,985 2,242,991 - 2,242,994 50.0% 1,868,450 Operating Transfers-In 35,000 35,000 - - 100.0% 61,871
TOTAL REVENUES 4,520,985 2,277,991 - 2,242,994 50.4% 1,930,321

EXPENSES
Salaries & Benefits 2,877,470 1,254,176 - 1,623,294 43.6% 1,293,829 Materials, Supplies & Services 1,694,740 1,338,825 67,140 288,775 83.0% 834,177 Special Projects 21,091 9,382 14,116 (2,407) 111.4% 194 Capital Outlay Transfers 232,127 141,064 - 91,064 60.8% 134,103 Equipment 12,130 4,579 182 7,369 39.2% 3,469
Appropriated Reserve (197,983) - - (197,983) 0.0% -
TOTAL EXPENSES 4,639,575 2,748,025 81,438 1,810,112 61.0% 2,265,772 Revenue Less Expense (118,590) (470,033) (81,438) 432,882 (335,451) NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

INFORMATION TECHNOLOGY FUND

Page 20 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Leases - Commercial 1,850,000 1,246,856 - 603,144 67.4% 1,024,594 Leases - Food Service 2,795,000 1,840,009 - 954,991 65.8% 1,391,909 Slip Rental Fees 4,829,458 2,449,561 - 2,379,897 50.7% 2,368,215 Visitors Fees 649,459 467,340 - 182,119 72.0% 348,134
Slip Transfer Fees 1,200,000 722,100 - 477,900 60.2% 869,075 Parking Revenue 2,814,685 1,585,314 - 1,229,371 56.3% 1,235,546 Wharf Parking 180,000 143,135 - 36,865 79.5% 122,492
Other Fees & Charges 235,562 133,302 - 102,260 56.6% 117,166 Investment Income 89,945 48,396 - 41,549 53.8% 59,507
Rents & Concessions 385,000 207,947 - 177,053 54.0% 193,622 Miscellaneous 629,892 139,927 - 489,965 22.2% 84,366
TOTAL REVENUES 15,659,001 8,983,888 - 6,675,113 57.4% 7,814,625

EXPENSES
Salaries & Benefits 7,710,675 3,825,270 - 3,885,405 49.6% 3,475,602 Materials, Supplies & Services 5,504,592 2,211,262 867,171 2,426,158 55.9% 2,064,845 Special Projects 233,348 87,185 195 145,969 37.4% 58,557 Debt Service 2,038,500 1,467,989 - 570,511 72.0% 1,469,709 Capital Outlay Transfers 109,414 54,707 - 54,707 50.0% 880,621 Equipment 132,428 17,501 19,416 95,511 27.9% 34,189
Capitalized Fixed Assets 53,544 - 13,847 39,697 25.9% - Other 2,375 1,513 1,000 (138) 105.8% 1,513
Appropriated Reserve 100,000 - - 100,000 0.0% -
TOTAL EXPENSES 15,884,875 7,665,426 901,629 7,317,819 53.9% 7,985,036 Revenue Less Expense (225,874) 1,318,462 (901,629) (642,707) (170,411)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

WATERFRONT OPERATING FUND
NOTE - These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

Page 21 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 10,972,584 689,812 - 10,282,772 6.3% -
Investment Income - 73 - (73) 100.0% -
Operating Transfers-In 1,550,532 738,867 - 811,665 47.7% - TOTAL REVENUES 12,523,116 1,428,751 - 11,094,364 11.4% -

EXPENSES
Salaries & Benefits 152,590 64,388 - 88,202 42.2% -
Materials, Supplies & Services 9,276,308 924,485 42,718 8,309,105 10.4% 7,489 Special Projects 744,127 162,999 13,127 568,001 23.7% 64,000 Other 49,000 - - 49,000 0.0% -
TOTAL EXPENSES 10,222,025 1,151,872 55,845 9,014,308 11.8% 71,489 Revenue Less Expense 2,301,090 276,879 (55,845) 2,080,056 (71,489)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

SANTA BARBARA CLEAN ENERGY FUND

Page 22 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service charges 2,369,071 1,184,535 - 1,184,536 50.0% 926,230 Grants 169,000 169,601 - (601) 100.4% -
Miscellaneous - 1 - (1) 100.0% -
Operating Transfers-In - - - - 0.0% 278,853
TOTAL REVENUES 2,538,071 1,354,137 - 1,183,934 53.4% 1,205,083

EXPENSES
Salaries & Benefits 619,869 252,943 - 366,926 40.8% 166,818 Materials, Supplies & Services 1,839,379 575,669 137,058 1,126,652 38.7% 484,643 Special Projects 145,774 6,665 51,744 87,365 40.1% 7,740 Debt Service 24,140 12,070 - 12,070 50.0% 12,070
Capital Outlay Transfers 100,870 50,435 - 50,435 50.0% 50,000 Equipment 4,000 - - 4,000 0.0% -
Capitalized Fixed Assets 169,000 - - 169,000 0.0% -
Appropriated Reserve (118,471) - - (118,471) 0.0% -
TOTAL EXPENSES 2,784,561 897,781 188,801 1,697,978 39.0% 721,271 Revenue Less Expense (246,490) 456,355 (188,801) (514,044) 483,812 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Six Months Ended December 31, 2021 (50.0% of Fiscal Year)

ENERGY MANAGEMENT FUND
Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 1 General Fund Revenues
The table below summarizes preliminary General Fund revenues for the six months ended December 31, 2021. For interim financial statement purposes, revenues are reported on a cash basis (i.e. when the funds are received). Each of these revenues below have unique cycles for collections, which may vary from other revenues, and which can cause fluctuations from previous years.

This table includes the annual adopted budget as well as any budget adjustments to date, and actual collections for the first six months of Fiscal Year 2022. The City’s general tax revenues, Franchise Fees, and Fees & Charges are projected in the table above, all other revenues assume the revised budget for the yearend projections. The largest general tax revenues are discussed in more detail below.

Variance
Revised **Projected Projection to Percent Prior Year Change Budget YTD Actual Full-Year Budget Rec'd YTD Actual From FY21 Property Tax $42,347,386 $14,417,238 41,587,997 $ (759,389) $ 34% $13,743,452 5% Sales & Use Tax 23,239,045 14,591,000 26,058,990 2,819,945 63% 11,436,706 28% Measure C Sales Tax 24,988,418 15,347,468 27,381,162 2,392,744 61% 12,077,308 27% TOT 19,500,000 14,825,408 22,676,493 3,176,493 76% 8,041,528 84% UUT 7,315,292 3,805,251 7,610,033 294,741 52% 3,656,786 4% Bus License 2,556,359 1,259,019 2,612,311 55,952 49% 1,118,171 13% Cannabis Excise Tax 1,847,469 925,419 1,843,798 (3,671) 50% 845,317 9% Prop Trans Tax 923,776 718,248 1,289,532 365,756 78% 539,928 33% Total Taxes $122,717,745 $65,889,050 131,060,316 8,342,571 54% $51,459,196 28% License & Permits 151,666 90,274 151,666 - 60% 88,608 2% Fines & Forfeitures 3,134,102 1,491,577 3,134,102 - 48% 899,858 66% Franchise Fee 3,706,830 2,033,373 3,962,740 255,910 55% 1,839,072 11% Use of Money & Property 1,321,016 565,842 1,321,016 - 43% 379,058 49% Intergovernmental 3,681,614 1,114,973 3,681,614 - 30% 2,129,566 (48%) Fee & Charges 12,761,381 7,424,081 11,727,979 (1,033,402) 58% 4,928,491 51% Miscellaneous 22,134,594 10,802,338 22,134,594 - 49% 9,773,810 11% Total Other $46,891,203 $23,522,458 46,113,711 (777,492) 50% $20,038,463 17% $169,608,948 $89,411,508 177,174,027 7,565,079 53% $71,497,660 25% Anticipated YE Var - - -
Total Revenues $169,608,948 $89,411,508 177,174,027 $ 7,565,079 $ 53% $71,497,660 25% **Projected Full-Year column projects only the general non-departmental revenues and Franchise Fees. All other revenues assume the same as budget for this table. Departments will be presenting more detailed projections during the Budget presentations in the upcoming months, and staff will provide more complete projections of all General Fund Revenues, as well.

Total Before Budgeted
Variances
Summary of Revenues
For the Six Months Ended December 31, 2021 Fiscal Year 2022

GENERAL FUND
Current Year Analysis FY2022 Prior Year Analysis FY2021 ATTACHMENT 2
Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 2 Property Tax
As of December 31, 2021, $14.4 Million in property tax revenues had been received to date.

During the budget process, it was expected the City would see growth of approximately 5% from the prior year, however more recent information now shows lower growth of approximately 3% to

3.5%. Some of this is due to Proposition 13, in which the assessed value of properties increases each January to the lesser of 2% or CPI. In the last several years this increase was 2%, however CPI for 2021-2022 was only 1.016%. Staff now anticipates the actual property tax revenues will below budget by approximately $760,000 at yearend.

Sales Taxes
Sales tax revenue received to date is approximately $14.6 Million. While representing six months of sales tax payments collected through December 31, 2021, on a cash basis; $5.4 million of this represents sales prior to Fiscal Year 2022, and will be accrued back to the prior year.

Sales tax has been trending in a positive direction for several months, likely due to a combination of increased consumer spending (particularly in online sales and auto sales), and the results of higher than expected inflation. If current economic conditions hold, sales tax will likely be higher than budget by year end by over $2.8 Million. Staff will continue to monitor this revenue closely.

Measure C Sales Taxes
Voters approved a one-cent Measure C sales tax in Fiscal Year 2018, which became effective April 1, 2018. Measure C sales tax revenue received to date is approximately $15.3 Million on a cash basis. On an economic basis, Measure C sales tax tracks very similar to the other sales taxes. Similar to sales tax, if economic conditions hold, Measure C sales tax will also likely be higher than budget by $2.4 Million by year end. Staff will be monitoring this revenue closely, as well.

Transient Occupancy Tax
Transient occupancy tax (TOT) revenue to date is $14.8 Million, which is significantly higher than collections as of December last year, due to COVID-19. The local travel industry is now seeing increases in demand for rooms, now higher than pre-pandemic levels. However the main cause of the growth is largely the result of increases in average daily rates, which are 30%-40% higher than Fiscal Year 2019 pre-pandemic rates. TOT revenues will likely be higher than budget by $3.2 Million by yearend if demand continues to hold at the current rate.

Department Revenues
Departmental revenues comprise approximately $32.8 Million of the General Fund budgeted revenues. They span various revenue categories listed in the table above, however for simplicity of reporting, the variance is shown in the Fees & Charges category. Departments will be presenting more detailed projections during the Budget hearing process in upcoming months and staff will provide more complete projections of all General Fund Revenues, as well.

Overall, departmental revenues are projected to end the year approximately $1 Million below budget. The table below provides variances by department.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 3 Projected
Revised Projected vs.

Department Budget Full Year Budget
Mayor & Council $120,000 $61,362 51% 120,000 0
City Attorney 331,302 86,115 26% 290,000 (41,302)
City Administrator 224,102 35,609 16% 215,072 (9,030)
Human Resources - - - - 0
Finance 527,931 94,372 18% 272,853 (255,078)
General Government $1,203,335 $277,458 23% 897,925 (305,410) Police 4,384,220 2,312,679 53% 3,822,351 (561,869)
Fire 6,175,064 1,805,958 29% 6,618,860 443,796
Public Safety $10,559,284 $4,118,637 39% 10,441,211 (118,073) Parks & Recreation 5,992,779 3,092,293 52% 6,033,552 40,773 Library 1,246,127 195,493 16% 1,190,048 (56,079)
Community Services $7,238,906 $3,287,786 45% 7,223,600 (15,306) Public Works 7,426,180 3,282,308 44% 6,651,951 (774,229) Sustainability & Resiliency 100,000 - 0% 100,000 0
Community Development 6,264,728 4,044,562 65% 6,444,344 179,616 Total $32,792,433 $15,010,751 46% 31,759,031 $ (1,033,402) % of annual budget 45.8% -3.2%
Actual

SUMMARY OF DEPARTMENTAL REVENUES

GENERAL FUND
For the Six Months Ended December 31, 2021 Fiscal Year 2022 YTD
Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 4 General Fund Expenditures
The table below summarizes the General Fund budget and year-to-date expenditures through December 31, 2021. The “Revised Budget” column represents the adopted budget, appropriation carryovers from the prior year, and any supplemental appropriations approved by the City Council in the current year.

The table includes actual expenditures without encumbrances. Inclusion of encumbrances can significantly distort the analysis of budgeted and actual expenditures during the year, as actual receipt of services or goods can occur in later periods. Outstanding encumbrances include certain appropriations that were carried forward from prior year and contracts or blanket purchase orders that have been executed in the current year but are expected to be used throughout the year. The following discussion of actual expenditures does not include the impact of encumbrances.

In some cases, COVID-19 caused increased expenditures as the City has quickly pivoted in response to unprecedented impacts and potential threats of the pandemic. The FY2022 adopted budget included a number of targeted reduction plans designed to reduce the City’s overall expenditures. These targeted reductions were spread over departments in the General Fund and total $6.8 Million. The first six months of actual financial performance reflect the best efforts of staff, fiscal conservatism, and an element of optimism that vaccines and continued adherence to local health measures will see steady, gradual improvements in the local economy.

The General Fund revised budget, including $6,699,596 of carried forward appropriations and encumbrances, and any new FY2022 council approved amendments, is $176,158,356, of which $86,302,421 has been spent as of December 31, 2021. The table below shows performance at department level.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 5 Expenditure Analysis by General Fund
The General Fund Expenditure Budget for FY2022 was adopted at $169,458,760, with an additional $6,699,596 added as a result of carried over budget from FY2021 and any other council approved adjustments. 44% of the total budget, including Non-Departmental Expenditures, is appropriated to provide public safety services through the Police and Fire Departments.

Community Services combines the City’s Parks and Recreation and Library Departments, and comprises 14% of the total budget. General Government makes up 12% of the appropriations and is the total of all costs for Finance, City Administration, Mayor and Council, City Attorney, Human Resources, and City Clerk.

All departments are targeted with achieving expenditure savings that were included in the adopted budget. Most departments are on track to meet or have already met this goal as originally determined at $6.8 Million for all departments through FY2022. With continued uncertainty in how the economic impact of the pandemic will be felt by the City, staff has confidence that expenditures will end the year below budget and meet expenditure reduction targets.

General Fund expenditures were $86.3 Million as at December 31, 2021, representing 49.0% of the revised budget, with an additional $5.4 Million (3.1%) encumbered.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 6 General Government actual spending of $9.4 Million, represents 44% of the annual budget. This includes salary savings from holding several positions vacant through the second quarter of FY2022.

Public Safety has expenditures of $40.2 Million, representing 51% of the annual budget, with savings achieved from keeping a number of positions vacant.

The Police Department (PD) expended $23.0 Million (50%) of its budget. Reduced staffing has resulted in increased overtime to cover staffing needs. The Department expects overtime costs to increase due to impacts of COVID-19 on staffing levels, necessitating implementation of an emergency schedule to meet minimum staffing requirements starting on January 8, 2022. Even with increased overtime expenditure, the department is saving in salary and benefits through continued vacancies, projecting salary savings of $2.2 Million by the end of FY2022.

The ongoing officer staffing shortage has necessitated staffing reassignments and suspension of some programs until minimum staffing levels can be met. PD currently has 19 officer positions and 16 professional service positions open. To meet the COVID-19 reduction target, several positions will be held open through the end of FY2022. Discussions regarding staffing needs continue between the Police Chief and the City Administrator and levels with adjustments to be made accordingly.

The Fire Department (FD) expended $17.2 Million (53%) of its budget, attributing additional expenditures beyond budgeted amounts to overtime needed to meet required minimum staffing levels and mutual aid. An additional, unanticipated settlement payment also contributed to increased expenditures during the First Quarter. In contrast, the department has met its planned reduction target of $1.6 Million by keeping open administrative positions and eliminating or deferring certain programs to FY2023. Fire deployed personnel and equipment to fourteen emergency incidents including the largest fire in California history (the Dixie Fire). This mutual aid accounted for $1.2 Million in overtime, but also generated 20 invoices totaling $2 Million, creating additional revenue for the department.

Community Services had actual expenditures of $11.5 Million, or 46% of budget. This performance is the result of significantly reduced operations over the first half of the year with many programs and services cancelled due to health orders.

The Library Department spent $2.8 Million, or 43% of its annual budget, during Second Quarter 2022. Library has reopened for full in-person services, but currently operates with reduced hours, capacity restrictions, and time limits on visits. Despite a reduction of 19 open hours to the public and continued significant short staffing, the Library has continued to deliver materials and robust services in-person, virtually, and through offsite outreach using the new Library on the Go Van.

The Library has held two full-time positions vacant as well as hourly positions vacant. The Library achieved its targeted reduction of $265,726 at the end of first quarter through the salary and benefits savings from these vacancies.

The Parks and Recreation Department had expenditures of $8.7 Million (47% of annual budget). The Department continues to provide essential services, such as park maintenance to ensure community access to save and clean open spaces, food distribution and senior meal programs to provide nutrition for the community, and recreation programming, camps, and affordable activities both for youth and adults, while complying with required safety protocols to be open during COVID-19. At the same time, they continue to advance key capital infrastructure Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 7 planning, design, and construction in anticipation of operations post pandemic. By holding open most currently vacant permanent staff and hourly positions, delaying recruitments, and reducing non-essential operating expenditure, the department expects to meet its expenditure reduction targets for FY2022.

The Public Works Department (PW) had expenditures of $4.6 Million (44% of annual budget) at Second Quarter FY2022. Savings from holding several positions open were partially offset by increased Professional Services Agreements, Non-Contractual Services, and increased hourly staff expenses to cover vacancies. Encumbrances are expected to be fully spent in FY2022. The Department Administration continues to monitor and reduce costs with all Divisions on track for their reduction targets. In particular, the Administration Division will rely on internal staff for outreach needs to save over half of its $65,906 target. Additional savings will be made by staff telecommuting, resulting in expense reductions for the City Bike Program, Employee Buss Pass Program, and Rideshare Program, including pool car maintenance and replacement costs.

The Sustainability and Resilience Department (S&R) had expenditures of $28,425 (11% of annual budget). A new department in FY2021, S&R achieved its targeted savings for FY2022 by holding a director position open. All encumbered funds ($71,800) are due to an outsourced vendor to service the CalRecycle program and will be fully spent by the end of FY2022. The department expects to end FY2022 below budget.

The Community Development Department (CD) had expenditures of $6.2 Million or 44% of annual budget. Other than Salaries and Benefits, expenditures are generally tracking as expected. The Department has experienced very high employee attrition during the first half of FY2022, with a current vacancy rate of approximately 20%. The vacancies are naturally contributing to significant salary and benefit savings. The department is on track to meet its targeted reductions.

Non-Departmental expenditures include transfers from the General Fund to other funds, the majority of which includes transfers to the Measure C fund for various capital maintenance and improvement projects. In prior fiscal years, the revenue summary table included anticipated yearend budget variances. This represented approximately 1.5% of budgeted operating expenditures in the General Fund and, represents staff’s estimate of the favorable expenditure variances (i.e. expenditures under budget primarily from attrition savings from position vacancies) for the year.

The anticipated year-end variance budget is now reported in non-departmental expenditures in the adopted FY2022 budget.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 8 General Fund Reserves Projection:

The table below summarizes the reserves projected in the General Fund by the end of FY2022, compared to the FY2022 adopted budget and prior year actual reserves. The table summarizes the General Fund reserve targets of 15% disaster and 10% contingency reserves as required by City Council resolution 12-066. Staff will continue to include a projection of anticipated changes to reserves based on likely revenue and expenditure projections included in future reports during quarterly reports to the City Council.

General Fund, Fund Balance
FY2019 FY2020 FY2021 FY2022 FY2022 vs
FY2021
Actual Actual Actual Projected
at Q2
Projected
Change in
Reserve
Contingency Reserve Target
10% 13,910,966 13,799,412 14,255,661 $14,965,025 $709,364 Disaster Reserve Target 15% $20,866,449 $20,699,118 $21,383,491 22,447,538 1,064,047 Total Policy Reserve Target $34,777,415 $34,498,530 $35,639,152 $37,412,563 $1,773,411 (Below) / Above Policy (1,513,888) (8,526,275) (1,419,589) 53,863 1,473,452 Actual Reserves $33,263,527 $25,972,255 $34,219,563 $37,466,426 $3,246,863 Self-Insurance Fund UnderReserve* (2,109,073) (4,580,532) (4,758,252) (5,889,878) (1,131,626) Remaining Contingency
Reserve $10,288,005 $692,605 $8,077,820 $15,018,888 $6,941,068 The FY2022 adopted budget required the strategic use of a small amount of reserves in order to balance the budget. Due to the favorable revenue growth in sales tax and TOT during the first half of FY2022, along with additional operating and capital savings from departments, the General Fund reserve position is projected to grow by the end of FY2022. Both disaster and contingency reserves are projected to be replenished by the end of FY2022.

The graph below summarizes the General Fund Reserves since FY2005, including a projection of ending reserves at the end of FY2022.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Actual Disaster Reserves Actual Contingency Reserves Policy Reserves Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 9 Enterprise Operating Fund Revenues and Expenses
Unlike the General Fund, which relies primarily on taxes to fund programs and services, Enterprise Fund operations is financed primarily from user fees and other non-tax revenues. The table below summarizes Enterprise Fund revenues and expenses through December 31, 2021, with a comparison to the current fiscal year budget and prior fiscal year expenses.

The expenses shown in the preceding table do not include outstanding encumbrances at December 31, 2021. Inclusion of encumbrances can distort the analysis of budgeted and actual expenditures. Outstanding encumbrances include appropriations that were carried forward from prior year as part of the appropriation carryovers and contracts or blanket purchase orders that have been added in the current year but are expected to be spent over the coming months.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 10 Solid Waste Fund
Solid Waste Revenues are $16.9 Million at the end of Second Quarter, representing 53.4% of budget Revenues include $864,000 from the ReSource Center, which was generated by an excess in their Rate Stabilization Fund. According to the Master agreement, when there is excess money in the Rate Stabilization Fund, the County returns the surplus based on a percentage of material delivered by each member. Due to delays in construction, the Rate Stabilization Fund had an excess amount, of which the City of Santa Barbara received $864,000. This disbursement is considered a one-time event and is unlikely to occur in future periods. In addition, the City expects to generate about $1.2 Million in additional solid waste rate revenues due in part to stable residential and commercial card usage, and higher than expected adopted rates.

Expenditures are $14.0 Million and 46% of the budget. Staff turnover, specifically vacancies in Code Enforcement Officer and an Environmental Services Specialist, is expected to generate about $51,000 in compensation savings by year end. The City expects to see an additional savings of $42,000 over multiple line items, resulting in approximately $102,000 savings by the end of FY2022.

Water Fund
Through the first six months of the fiscal year, Water Fund revenues have totaled approximately $35.5 Million, or 55% of the adopted budget, which is on target with staff expectations. At midyear, total revenue is ahead of budget as customer rate revenue, the Water Fund’s primary Revenue source, is exceeding budget, which is a common trend at mid-year due to typically higher water demands in the summer months. In addition, the $10 Million grant reimbursement is expected this year, and inter-agency water supply agreements are providing new revenue to the Water Fund, further improving the mid-year financial position.

Expenditures are below budget through the first half of the fiscal year, with $29.5 Million (43% of annual budget), but many of the largest positive variances are due to the timing of invoice payments, items that will correct by year-end. When encumbrances are considered, expenditures are at 51% of budget, and staff anticipates budgetary savings at year-end.

Wastewater Fund
Overall, at mid-year, revenues are right on target at 51% of the annual budget ($12.9 Million).

Leading this trend is customer rate revenue, which makes up the majority of revenue for the Wastewater Fund. Other less significant revenue sources are trailing budget.

Expenditures are below budget at $11.1 Million (42% of annual budget) at mid-year, mainly due to the timing of vendor and debt service payments in the supplies and services, transfers, debt service categories. Staff continues to cautiously spend financial resources as the City emerges from the pandemic and resumes more normal operations.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 11 Downtown Parking Fund
At mid-year, revenues are at 45% of budget, or $3.4 Million. This is expected due to the impacts of the pandemic. Although demand for employee parking permits is beginning to recover, it remains well below pre-COVID-19 levels because many offices continue to ask their employees to work from home. Demand for hourly parking has returned to pre-pandemic levels on weekends, but remains lower than normal on weekdays. Despite this recovery, hourly revenues remain well below pre-pandemic levels because Downtown Parking is having difficulty hiring and retaining enough hourly lot operators to return to normal hours of operation. Hours of revenue collection remain limited.

Expenditures came in at $3.8 Million (45% of annual budget). A considerable amount of savings at first quarter is mainly due to large encumbrances in supplies and services for maintenance of the plaza and lots, as well as savings in Special Project lines for the PBIA assessment study, downtown maintenance contract, and Safe Parking Program that are expected to be fully spent by year end. The Downtown Parking Fund reserves have gradually declined over the past 4 years and the impacts of COVID-19 have further deteriorated the reserve position. The fund is projected to be below the policy reserve target by the end of FY2022.

Clean Energy Fund
The City’s Clean Energy program launched to all residents in October of 2021, and started receiving revenue in the second quarter of FY2022, with a total of $1.4 Million (11% of annual budget) by December 31, 2021. Because of better than expected participation from rate payers, staff expects revenues of $14.5 Million, about $1.9 above budget, by year end. In addition, a $2 Million General Fund loan has been available to cover startup costs. The loan is disbursed on an as-needed basis as costs occur. $738,000 was disbursed from the loan to cover costs in the first six months of the year.

Expenditures for the Fund were $1.2 Million at mid-year, predominantly due to the program’s launch in the second quarter. As the year progresses and the second phase of the program launches (bringing in commercial customers), staff expects costs to accelerate accordingly.

Recent estimates suggest program expenditures to reach approximately $14.0 Million by year end. This increase is due to better than expected customer participation as well as significant increases in power costs due to the recent run up in energy markets.

Airport Fund
Santa Barbara Airport remained open and operating 24/7 throughout the pandemic; although with significantly reduced activity at times. The Airport’s mid-year FY2022 results reflected a better than anticipated recovery of service, with revenues coming in at $12.4 Million (45% of annual budget). SBA’s recovery, which is attributed to a strong leisure market, is leading a better than anticipated recovery and not experienced by all airports across the nation. In other lines of business, the Airport remained stable. None of SBA’s commercial-industrial tenants have requested a deferral of rent, and private/corporate aviation remains consistently active.

Fortunately, Congress recognized early the devastating effects that the pandemic would have on most of the aviation industry. Santa Barbara Airport has been awarded $19.3 Million in grant funding to support its revenue shortfalls; $9.5 Million was received in Congress’ first CARES Act relief package, another $3.5 Million was approved on December 27, 2021 for the remainder of Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 12 FY2021 from the CRRSAA Act. Approximately $6.3 Million in ARPA grant was awarded to support the recovery in FY2022 and is expected to be reflected in airport revenues in the next quarter.

Expenditures were $27.8 Million, or 44% of the annual budget. This includes savings due to unfilled vacancies and other related operating expenses across most programs. As vacancies persist and possibly increase with planned retirements and difficulties in the labor market, overtime costs have risen and may increase further to back fill these positions.

Golf Fund
Golf Fund Revenues are above budget at $2.0 Million, or 58% of annual budget. Golf continues to maintain its popularity this year as a safe recreational activity during the ongoing COVID-19 pandemic. As a result, paid rounds are projected to achieve budget fiscal year with total rounds played at the Golf Course expected to exceed 63,000 this year, more than 3,000 above budget projection. Additionally, eased health restrictions have allowed for concessions revenues, which at mid-year totaled $100,971, a 32% increase over pre-pandemic performance.

Expenditures were $1.4 Million, or 45% of annual budget. Due to continued high use of the Course, the City anticipated the operator achieve its incentive fee for the second consecutive year, thus increasing overall expenditures for FY2022. Golf expects to meet its reduction targets by the end of FY2022 and end within budget.

Waterfront Fund
The COVID-19 pandemic continues to negatively impact Waterfront Department revenues through the second quarter of FY2022; however, the Department has seen improvements in parking revenues as well as commercial and restaurant revenues over the first two quarters, indicating a return to pre-COVID-19 revenues may be on the horizon. Waterfront Revenues were $9.0 Million (57.4% of annual budget) at mid-year. Slip permit transfer fees remain relatively strong, although down nearly 17% versus last year at the same time. Commercial leases at both Stearns Warf and the Harbor are up 22%, food service leases are up 32%, and parking revenues up 27% over the same time last year. The Fund currently expects to meet or exceed FY2022 budgeted revenues by year end.

Expenditures were $7.7 Million, or 46% of annual budget. Cost savings were achieved by maintaining numerous position vacancies and reducing supplies and services costs across Waterfront Divisions. Additionally, Capital Outlay has been drastically reduced as COVID-19 delayed many capital projects, with planning and activities for future projects continuing at lower than initial costs. The Department continues to monitor costs and anticipates over $635,000 in savings for FY2022.

Enterprise Operating Funds: Year-End Projected Reserves.

The table below summarizes the anticipated impact on reserves in each of the major enterprise funds at the end of FY2022 compared to policy reserve targets.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 13 Current staff projections for Downtown Parking would result in using $970,472 of reserves in FY2022. The Clean Energy fund will propose a reserve policy target during the upcoming FY2023 budget process, as a formal policy has yet to be established being the enterprise is in its infancy stage. Staff developed and presented balancing strategies as part of the FY2022 budget process to minimize the use of reserves and a plan for replenishment, as per Resolution 12-066.

Fiscal Year 2022 Interim Financial Statements
For the Six Months Ended December 31, 2021 (50% of Year Elapsed) 14 Interdepartmental Services Operating Fund Revenues and Expenses The City has established internal service funds for centralized services that provide support across most or all funds and departments. These functions primarily include fleet, facilities, risk management, and information technology. The interim quarterly reports would typically not discuss in detail major changes in the City’s internal services departments and funds as major changes typically do not occur during the year.

Self-Insurance Fund (SIF)
The City purchases insurance policies to cap its exposure to loss for specific hazards. The SIF accumulates revenues through an annual allocation from departments as an expenditure to each department. The SIF then pays for the program’s annual renewals for insurance coverage, claims that may need to be paid during the fiscal year, and the staff administering the programs.

The SIF has experienced financial challenges in recent years. The annual allocations coming in to the SIF from departments has remained relatively flat because of the budgetary challenges facing the City’s General Fund and other funds. The cost to the City to retain the existing property, excess general liability, and other insurance programs has increased substantially over the years.

Liability coverage has become more expensive across the nation due to recent large losses from law enforcement and other claims. And property coverage has become more expensive due to insurance companies factoring in increased costs due to recent droughts and wildfires in the Western United States and California, in particular.

The most recent actuarial report recommended that the City have an $18.3 Million reserve balance in the SIF to be able to continue to fund the City’s existing insurance program and cover reasonably anticipated claim activities. The FY2022 budget assumed an ending fund balance of $7.5 Million in the SIF, but the revised projection for year-end indicates the ending reserve will be lower by $1 Million resulting in an ending fund balance of $6.5 Million.

On November 16, 2021, staff presented an overview to the Finance Committee regarding major changes anticipated in the insurance industry, budget considerations for FY2022 and FY2023, and substantial increases to operating department allocations into the SIF to ensure ongoing premium and claim payment costs can be met and adequate reserves can be achieved. The Finance Committee unanimously supported implementing a plan to gradually increase allocations into the SIF over the next nine fiscal years to target achieving reserves at or near the actuarial recommended level. Staff will build in these allocation increases into the FY2023 recommended budget and beyond.

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
GENERAL FUND (Fund 1000)
Increase appropriation of $39,000 from General Fund Reserves to cover the cost of City Hall security services through June 30, 2022. $ - 39,000 $ (39,000) $
Increase estimated revenue and appropriations for Mutual Aid activity that exceeded budgetary expectations. $ 100,000 100,000 $ - $ Total General Fund (1000) $ 100,000 139,000 $ (39,000) $

SPECIAL REVENUE FUNDS
Library Miscellaneous Grants Fund (2850)
Increase estimated revenue and appropriations as the Science Fiction and Fantasy Writers of America (SFWA) awarded the Library a $2,735 grant to support book clubs and collections. The Library requests to appropriate the full grant amount and additional revenue.
$ 2,735 2,735 $ - $
The Friends of the Library contribute funds annually to support Library programs, materials, and services. The Friends of the Library contribution in FY22 will be $65,000 and the Library would like to request to appropriate the full amount. $ - 65,000 $ (65,000) $ Increase estimated revenue and appropriations as the American Library Association awarded the Library an additional award of $3,000 for another round of the Libraries Transforing Communuties grant to support community connection and engagement. The Library requests to appropriate the funds. Funds will be used to purchase books and supplies for the program.
$ 3,000 3,000 $ - $
Total Library Miscellaneous Grants Fund (2850) 70,735 $ 5,735 $ (65,000) $ Parks and Recreation Miscellaneous Grants Fund (2860)
Increase estimated revenue and appropriations to receive a grant from the Parma Park Trust. $ 103,087 103,087 $ - $ Total Parks and Recreation Miscellaneous Grants Fund (2860) 103,087 $ 103,087 $ - $

ENTERPRISE FUNDS
Solid Waste Fund (5400)
Increase estimated revenue and appropriations as the City and Union Pacific have a standing MOU in which Union Pacific reimburses the City for work performed in the Union Pacific Right of Way. The reimbursements include specific homeless camp abatement related costs that have not been previously claimed by the City. This budget adjustment will increase appropriations for homeless camp abaement costs, to be funded from reimbursements from Union Pacific. $ 27,988 27,988 $ - $
Total Solid Waste Fund (5400) $ 27,988 27,988 $ - $
Golf Course Fund (5600)
Increase estimated revenue and appropriations as the golf course anticipates higher revenues and performance incentive costs. $ 27,989 27,989 $ - $
Total Golf Course Fund (5600) $ 27,989 27,989 $ - $
Airport Operating Fund (5700)
Increase appropriations to transfer $300,000 from the Airport Operating Fund to Airport Capital Fund. $ - 300,000 $ (300,000) $ Reduce Appropriations from Airport Operating Fund for the 495 Fairview Hangar project. $ - (300,000) $ 300,000 $ Total Airport Operating Fund (5700) $ - - $ - $
City of Santa Barbara
Fiscal Year 2022 Financial Statements for the Six Months Ending December 31, 2021 Proposed Budget Adjustments

Page 1 of 3 ends

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
ENTERPRISE FUNDS (Continued)
Airport Capital Fund (5710)
Increase estimated revenue to transfer in $300,000 from the Airport Operating Fund to Airport Capital Fund. $ 300,000 - $ 300,000 $ Reduce appropriations from Airport Capital Fund for the General Western Aero Hangar Restoration project. $ - (15,000) $ 15,000 $ Increase appropriations to complete the 6190 Botello Remodel project. $ - 100,000 $ (100,000) $ Increase appropriations as the Airport seeks to create tenant signage guidelines that will create a more unified campus around the Airport, while also providing connection to the City’s downtown sign standards. $ - 20,000 $ (20,000) $ Increase appropriations as additional funds needed for Parking Structure, Terminal Expansion bid project. $ - 166,000 $ (166,000) $ Increase appropriations for the 495 Fairview Roof Replacement project. $ - 575,446 $ (575,446) $ Increase appropriations for the Terminal Boiler and Air Conditioning System Replacement project. $ - 100,000 $ (100,000) $ Reduce appropriations for the Airline Lavatory Pretreatment Facility project. $ - (596,297) $ 596,297 $ Increase appropriations for the South Airfield Development project. $ - 322,611 $ (322,611) $ Increase appropriations for the Parking Revenue Control project. $ - 500,000 $ (500,000) $ Increase appropriations for LED upgrade of exterior lighting at the Santa Barbara Airport. Includes fixture replacement on the terminal, hangars, and parking lots and pole lights in the parking lots. $ - 55,000 $ (55,000) $ Increase appropriations of $30K for Nursing Station & $30K for Animal Relief Area. $ - 60,000 $ (60,000) $ Reduce appropriations for the Terminal Modular Building project due to excessive cost. $ - (987,760) $ 987,760 $ Total Airport Capital Fund (5710) $ 300,000 300,000 $ - $ Waterfront Operating Fund (5800)
Increase appropriations to transfer $312,031 from the Waterfront Operating Fund to Watefront Capital Fund in an effort to true up the capital fund. $ - 312,031 $ (312,031) $
Increase appropriations to transfer $15,407 from the Waterfront Operating Fund to the Harbor Preservation Fund in order to maintain $2,000,000 in the Harbor Preservation Fund. $ - 15,407 $ (15,407) $ Total Waterfront Operating Fund (5800) $ - 327,438 $ (327,438) $ Waterfront Capital Fund (5810)
Increase estimated revenues to receive $312,031 from the Waterfront Operating Fund to Watefront Capital Fund in an effort to true up the capital fund. $ 312,031 - $ 312,031 $ Total Waterfront Capital Fund (5810) $ 312,031 - $ 312,031 $ Waterfront Harbor Preservation Fund (5820)
Increase estimated revenues to receive $15,407 from the Waterfront Operating Fund to the Harbor Preservation Fund in order to maintain $2,000,000 in the Harbor Preservation Fund. $ 15,407 - $ 15,407 $ Total Waterfront Harbor Preservation Fund (5820) $ 15,407 - $ 15,407 $

Page 2 of 3 ends

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves

INTERNAL SERVICE FUNDS
Self Insurance Trust Fund (6100)
Increase appropriations for additional workers' compensation claim payments in FY2022 compared to the adopted budget. 500,000 $ - $ (500,000) $ Increase appropriations for additional general liability claim payments in FY2022 compared to the adopted budget. 400,000 $ - $ (400,000) $ Total Self Insurance Trust Fund (6100) $ - 900,000 $ (900,000) $ Energy Management Fund (6500)
Increase estimated revenue and appropriations as the California State Energy Commission recently awarded a grant to Santa Barbara MTD to create a planning and strategy document that eventually electrify medium-duty and heavy-duty MTD equipment. The City has entered into agreement with MTD to provide certain outreach and community engagement services as part of the grant project. Staff has found that the project is consistent with the City’s Strategic Energy Plan.

The budget adjustment request will add appropriations to cover outreach and engagement costs, to be funded from MTD’s CEC grant.
$ 15,000 15,000 $ - $
Total Energy Management Fund (6500) $ 15,000 15,000 $ - $

Page 3 of 3 ends

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: Energy & Climate Division, Sustainability & Resilience Department SUBJECT: Approve Entering Into Assignment And Assumption Agreements For Long-Term Renewable Energy With Duran Mesa LLC And Manzana Wind LLC On Behalf Of Santa Barbara Clean Energy
RECOMMENDATION: That Council:

A. Approve and Authorize the City Administrator to Execute an Assignment and Assumption Agreement for Long-Term Renewable Energy by and Among the City of Baldwin Park, a California municipal corporation (“Assignor”), the City of Santa Barbara, a California municipal corporation (“Assignee”) and Duran Mesa LLC (“PPA Seller”); and
B. Approve and Authorize the City Administrator to Execute an Assignment and Assumption Agreement for Long-Term Renewable Energy by and Among the City of Baldwin Park, a California municipal corporation (“Assignor”), the City of Santa Barbara, a California municipal corporation (“Assignee”) and Manzana Wind LLC (“PPA Seller”).

DISCUSSION:

The City’s Community Choice Aggregation (CCA) Program, Santa Barbara Clean Energy (SBCE), was established by the City Council through the adoption of Ordinance 5915 on October 22, 2019, and began serving customers in October 2021.

In October 2015, the State of California enacted SB 350, also known as The Clean Energy and Pollution Reduction Act of 2015 (the Act). The Act established new clean energy, clean air, and greenhouse gas reduction goals for the state. Specifically, the Act requires that all load-serving entities, including Community Choice Aggregators (CCAs), enter into long-term renewable energy contracts with energy delivery to begin by the 2021 – 2024 compliance period (Compliance Period 4).

The Act also revised the Renewables Portfolio Standard (RPS), with which SBCE is required to comply. Specifically, it increased the minimum renewable energy standards from 33% by December 31, 2020, to 50% by December 31, 2030. The Santa Barbara City Council has established a default energy product that is sourced from 100% carbon-free resources, and Agenda Item No. 9
Council Agenda Report
Approve Entering Into Assignment And Assumption Agreements For Long-Term Renewable Energy With Duran Mesa LLC And Manzana Wind LLC On Behalf Of Santa Barbara Clean Energy
March 1, 2022

Page 2 ends

Rev 041619
75% renewable energy at launch, therefore already meeting and surpassing the state’s goals.

In order to meet the requirements of the Act, California Choice Energy Authority (CalChoice), on behalf of SBCE and its other member agencies, has been seeking viable projects through solicitations and offers.

CalChoice and its legal and technical team spent several months negotiating and finalizing commercial and contract terms on behalf of its member agencies with Pattern Energy Group LLC (Pattern) for the Duran Mesa LLC project (Duran Mesa), and Avangrid Renewables (Avangrid) for the Manzana Wind LLC project (Manzana).

The original Power Purchase Agreements (PPAs) were entered into by the City of Baldwin Park (Baldwin Park) for their CCA program. However, Baldwin Park recently made a political decision to return their CCA customers to Southern California Edison for a variety of reasons related to priorities of its new City Council and no longer has a need for the renewable energy to be delivered under the PPAs. One of the benefits of being a member of CalChoice is the ability to transfer agreements between members when an opportunity arises. Currently, SBCE has fulfilled 67% of its long-term requirements for Compliance Period 4. By assuming these contracts, SBCE will have fulfilled 100% of the requirement as mandated by the Act.

Santa Barbara Clean Energy is receiving the energy and ancillary benefits through these PPAs at well below market value. In addition to renewable energy, SBCE will also receive added benefits of Resource Adequacy and Mid-Term Reliability attributes, of which a certain amount of each is required under California Public Utility Commission rules for load-serving entities, such as CCAs. Though the actual energy price cannot be publicly disclosed under SBCE’s Cost Confidentiality Policy, staff has done their due diligence to ascertain the value of the contracts.

One of the central priorities of CCAs, including SBCE, is to expand the construction of new renewable projects providing clean and renewable power. These two power purchase agreements support that goal and underscore CCAs’ ability to dramatically enhance the availability of these clean power sources.

The Duran Mesa wind project is a sub-project within Pattern’s suite of Western Spirit Wind power projects. The total project, which was completed and began operations in December 2021, is more than 1,050 megawatts and is currently the largest renewable energy project in the United States. The wind project is located in New Mexico and provides clean, renewable energy to California and New Mexico as part of the collaborative nature of the western grid system represented by the Western Electricity Coordinating Council.

The Manzana wind project is in the Tehachapi region of Kern County, California. The project is currently delivering clean, renewable energy to the state and is one of more Council Agenda Report
Approve Entering Into Assignment And Assumption Agreements For Long-Term Renewable Energy With Duran Mesa LLC And Manzana Wind LLC On Behalf Of Santa Barbara Clean Energy
March 1, 2022

Page 3 ends

Rev 041619
than 50 renewable energy projects operated by Avangrid in the country. Avangrid is currently expanding this project with delivery to SBCE scheduled to begin in August 2023.

Both agreements recognize and accept the secured deposit account that already exists in the name of the City of Santa Barbara as credit and collateral with River City Bank, and no other security or credit backed by the City is required.

On January 12, 2021, Council adopted Resolution No. 21-001 acknowledging that SBCE is a “utility” under the Santa Barbara Charter and, as such, long-term contracts over fiveyears in duration for the procurement of energy do not require City Council approval by ordinance, but do require City Council review and approval, where feasible. The power purchase agreements are available for review by request to [email protected]; however, per the SBCE Cost Confidentiality Policy adopted by Council on May 25, 2021, sensitive pricing information has been redacted.

BUDGET/FINANCIAL INFORMATION:

The total contract value for the Duran Mesa agreement over the 15 year term of the agreement is $3,770,910 ($251,394 annually), and the total contract value for the Manzana agreement over the 11 year term of the agreement is $2,108,600 (approximately $191,700 per year). There will be sufficient revenues generated to cover operating expenses, including power procurement, and to fund reserves to provide financial and rate stability to the program.

SUSTAINABILITY IMPACT:

SBCE will offer substantially more renewable and cleaner (carbon free) electricity than currently delivered by Southern California Edison (SCE). Surplus revenues generated by SBCE may be used to develop energy programs and local projects and incentives to further achieve the objectives set forth in the Strategic Energy Plan or other City goals outlined in other plans, such as the Climate Action Plan.

ENVIRONMENTAL REVIEW:

The City of Santa Barbara has determined that Santa Barbara Clean Energy does not constitute a project subject to environmental review under the provisions of the California Environmental Quality Act (CEQA). The activity to implement and operate SBCE is an administrative action that will not result in a direct physical change to the environment or a reasonably foreseeable indirect change to the environment. The activity is therefore exempt from CEQA environmental review pursuant to the CEQA statute (Public Resources Code Section 21065) and the State CEQA Guidelines (California Code of Regulations Section 15060 and 15378) under which a project subject to CEQA environmental review does not include “organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment.” Implementing and operating SBCE presents no foreseeable significant adverse impact to Council Agenda Report
Approve Entering Into Assignment And Assumption Agreements For Long-Term Renewable Energy With Duran Mesa LLC And Manzana Wind LLC On Behalf Of Santa Barbara Clean Energy
March 1, 2022

Page 4 ends

Rev 041619
the environment over existing conditions because State regulations apply equally to CCAs as they do to investor-owned utilities such as SCE.

PREPARED BY: Alelia Parenteau, Acting Sustainability & Resilience Director SUBMITTED BY: Rebecca J. Bjork, City Administrator
APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Memorandum Of Understanding With County Of Santa Barbara To Provide Parking At City Parking Lot 6 In Support Of Dignity Moves Project
RECOMMENDATION:

That Council Authorize the City Administrator to enter into a Memorandum of Understanding with the County of Santa Barbara to provide parking in support of the Dignity Moves Homeless Housing project.

DISCUSSION:

With the homelessness crisis affecting the State of California, including the County and City of Santa Barbara, the County and City agree programs are necessary to meet the social needs of the unhoused community. The County in partnership with Dignity Moves is creating a transitional housing project at their Garden Street Parking Lot, located on the 1000 block of Garden Street. This project will place on the parking lot 33 temporary small, portable housing units and related facilities to provide shelter and supportive services to assist the unhoused population. Dignity Moves is expected to have the project operational in April 2022. The County has committed to target appropriate unhoused residents in downtown Santa Barbara as priority recipients of housing. Outreach and inclusion in the Continuum of Care system is already underway. The initial term of the project is for three years, with a goal of serving at least 66 individuals.

In order to further the public interest and community benefit provided by the Dignity Moves project, a portion of the County-owned parking lot will not be usable for County and Superior County employees. To partner with the County on this needed project, the City is offering to provide up to 46 parking permits for use of the City’s Parking Lot 6 (Granada Garage) for the duration of the project. On February 8, 2022, the County Board of Supervisors approved the MOU for parking with the City.

Agenda Item No. 10
Council Agenda Report
Memorandum Of Understanding With County of Santa Barbara To Provide Parking At City Parking Lot 6 In Support of Dignity Moves Project
March 1, 2022

Page 2 ends

BUDGET/FINANCIAL INFORMATION:

The City of Santa Barbara is being requested to support this transitional housing project by providing up to 46 parking permits at a current value of $88,320 per year for a total of $294,400 for the 40-month initial term of the project. Parking Lot 6 is operated by Downtown Parking, whose own budget has been impacted by lost parking revenue directly related to the pandemic. As this is a project with a citywide community benefit, staff will make a recommendation at an upcoming City Council meeting to replace this lost revenue from the second tranche of the City’s American Rescue Plan Act funding, which is scheduled to be received in May of 2022.

ENVIRONMENTAL REVIEW:

The recommended Council actions are categorically exempt from CEQA under CEQA Guidelines §15301 (operation of existing facilities). The County is lead agency for environmental review of the Dignity Moves Housing Project on County property.

ATTACHMENT(S): Memorandum Of Understanding Between The City Of Santa Barbara And The County Of Santa Barbara
PREPARED BY: René Eyerly, Interim Assistant City Administrator SUBMITTED BY: Rebecca Bjork, City Administrator
APPROVED BY: City Administrator's Office
Attachment

ATTACHMENT
Memorandum of Understanding
with City of Santa Barbara to
provide Parking Permits for use of
City Parking Lot 6, 1st District
DocuSign Envelope ID: 8F134CEC-A42C-4C99-B56D-0BC0B367EBC3 MOU Between City and County of Santa Barbara

Page 1 of 4 ends

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF SANTA BARBARA

AND THE COUNTY OF SANTA BARBARA
THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is made and entered into this 8th day of February, 2022, by and between
CITY OF SANTA BARBARA, a municipal corporation
(hereinafter referred to as “CITY”);
and
COUNTY OF SANTA BARBARA, a political subdivision of
the State of California (hereinafter referred to as
“COUNTY”)
Whereas, homelessness is a crisis affecting the State of California, including the County and City of Santa Barbara; and
Whereas, homelessness is detrimental to the health and safety of both people experiencing it and the communities in which they live; and Whereas, the CITY and COUNTY agree that transitional housing provides critical support services to people experiencing homelessness and a path to permanent housing; and Whereas, the COUNTY has partnered with Dignity Moves, Inc., to provide transitional supportive housing in the COUNTY parking lot located on the 1000 block of Garden Street (“Parking Lot”); and
Whereas, this parking lot is currently used by Superior Court of California and County of Santa Barbara employees (“Employees”), who have use of dedicated and non-dedicated parking areas that will be displaced for the duration of the Transitional Supportive Housing Program (“Project”); and
Whereas the COUNTY has certain obligations to provide dedicated parking to the Superior Court of California employees and non-dedicated parking to Superior Court of California and County of Santa Barbara employees; and
Whereas, the CITY desires to further the public interest and community benefit provided by the Project though providing replacement parking, required by the COUNTY, for the Employees as provided in this MOU.

DocuSign Envelope ID: 8F134CEC-A42C-4C99-B56D-0BC0B367EBC3 MOU Between City and County of Santa Barbara

Page 2 of 4 ends

NOW, THEREFORE, CITY and COUNTY express their understanding as follows:

A. The initial term of this MOU between the CITY and the COUNTY shall commence on February 15, 2022, and run until June 30, 2025, with two COUNTY options to extend an additional five years each, provided that the Parking Lot continues to be used, including the demobilization and removal of any and all improvements for the Project. COUNTY shall give notice of its intent to extend at least 30-days prior to the expiration of the then-current term. It is anticipated the Project will be retained as available inventory for transitional supportive housing resources for homeless persons for at least a 10-year period after the initial term. This MOU shall remain in place regardless of the active operation of the Project.

B. CITY agrees to provide, at no cost to the COUNTY, 46 parking permits for use of CITY Parking Lot 6 (the Granada Garage, located at 1221 Anacapa Street) by the Employees. The permits will be provided at no cost to the COUNTY for eligible Employees receiving a permit.

C. COUNTY shall determine in its sole discretion which Employees are eligible to receive permits for the Granada Garage.

D. COUNTY’s Fleet Manager (“Fleet Manager”) or designee shall be the designated point-of-contact for all matters relating to the permits provided pursuant to this MOU. The point-of-contact will be responsible for designating Employees eligible to receive a permit and informing the CITY of Employees’ eligibility. Fleet Manager will inform the CITY when and if any individual Employee is no longer eligible to hold a permit under this MOU.

E. Employees eligible to receive a permit must complete the CITY’S Parking Permit Application, for CITY to review and process, prior to CITY issuing and the Employees receiving a permit. Permits may be obtained by submitting applications to the Downtown Parking Office, located at 1221 Anacapa Street, or through the Downtown Parking website. Employees shall submit the completed permit application to the Fleet Manager and the Fleet Manager shall forward the Permit Application to the CITY.

F. Permits are subject to the standard terms and conditions for use. Permits are valid for use only by the individual named on the permit (“Permit Holder”) and may not be transferred to other individuals without the Permit Holder notifying the CITY and Fleet Manager, in advance, and providing all required application materials. The Permit Holder, and not the Superior Court of California, or the Fleet Manager, will be responsible for knowing and complying with terms and conditions that are part of the parking permit application. The CITY may terminate a permit if the Permit Holder violates the terms and DocuSign Envelope ID: 8F134CEC-A42C-4C99-B56D-0BC0B367EBC3 MOU Between City and County of Santa Barbara

Page 3 of 4 ends

conditions for use or is no longer eligible for a permit. Terminated Permit Holders may be eligible for reinstatement at the commencement of each newterm.

G. Permits are intended for commuter use only and shall not be used to store vehicles overnight or for extended periods of time.

H. This MOU constitutes the entire agreement between CITY and COUNTY with respect to the subject matter contained herein and it supersedes all prior MOUs, discussions, and negotiations, either oral or written. This MOU may not be amended or modified in any respect whatsoever except by an instrument in writing and approved by the CITY and COUNTY
IN WITNESS WHEREOF, CITY and COUNTY have executed this MOU by the respective authorized officers as set forth below to be effective on February 15, 2022. “CITY”

CITY OF SANTA BARBARA
a municipal corporation
By:

Rebecca Bjork
Acting City Administrator
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

By: By:

Daniel S. Hentschke Clifford Maurer
Assistant City Attorney Public Works Director
(COUNTY OF SANTA BARBARA signatures continue on next page) DocuSign Envelope ID: 8F134CEC-A42C-4C99-B56D-0BC0B367EBC3 MOU Between City and County of Santa Barbara

Page 4 of 4 ends

IN WITNESS WHEREOF, CITY and COUNTY have executed this MOU by the respective authorized officers as set forth below to be effective on February 15, 2022. “COUNTY”

COUNTY OF SANTA BARBARA
a political subdivision of the State of California
APPROVED AS TO FORM: By:

RACHEL VAN MULLEM Joan Hartmann, Chair
COUNTY COUNSEL Board of Supervisors
Date:

By:

Johannah L. Hartley
Deputy County Counsel
APPROVED AS TO CONTENT: APPROVED AS TO CONTENT:

By:

Janette D. Pell, Director
General Services Department
By:

Terri Maus-Nisich
Assistant Executive Officer
County Executive Office
DocuSign Envelope ID: 8F134CEC-A42C-4C99-B56D-0BC0B367EBC3 MOU Between City and County of Santa Barbara

Page 3 of 4 ends

conditions for use or is no longer eligible for a permit. Terminated Permit Holders may be eligible for reinstatement at the commencement of each newterm.

G. Permits are intended for commuter use only and shall not be used to store vehicles overnight or for extended periods of time.

CITY OF SANTA BARBARA
a municipal corporation
By:

Rebecca Bjork
Acting City Administrator
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

By: By:

Page 4 of 4 ends

IN WITNESS WHEREOF, CITY and COUNTY have executed this MOU by the respective authorized officers as set forth below to be effective on February 15, 2022. “COUNTY”

COUNTY OF SANTA BARBARA
a political subdivision of the State of California
APPROVED AS TO FORM: By:

RACHEL VAN MULLEM Joan Hartmann, Chair
COUNTY COUNSEL Board of Supervisors
Date:

By:

Johannah L. Hartley
Deputy County Counsel
APPROVED AS TO CONTENT: APPROVED AS TO CONTENT:

By:

Janette D. Pell, Director
General Services Department
By:

Terri Maus-Nisich Assistant
Executive Officer County
Executive Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: Engineering Division, Public Works Department
SUBJECT: Contract For Design Of El Estero Water Resource Center SCADA Upgrades Project
RECOMMENDATION:

That Council authorize the Public Works Director to execute a City Professional Services contract with Aspect Engineering Group for the El Estero Water Resource Center SCADA Upgrades Project in the initial amount of $124,637 for phase 1 design services with phase 2 installation services subject to future contract amendment and Council approval, and authorize the Public Works Director to approve expenditures of up to $12,464 for extra services that may result from necessary changes in the scope of work.

DISCUSSION:

Background
The City’s El Estero Water Resources Center (El Estero) plays an essential role in protecting public health and the environment. El Estero is responsible for treating approximately 6 million gallons of municipal wastewater per day from the City of Santa Barbara (City). The plant sits on 13 acres in Downtown Santa Barbara and treats water to secondary standards for discharge to the Pacific Ocean, or to Title 22 standards for distribution in the recycled water system. The treatment system consists of many large process units and motorized equipment such as pumps, tanks, blowers, mixers, and instrumentation. The process is monitored and controlled by a series of remote Programmable Logic Controllers (PLC) throughout the plant. The information from all the instruments captured and controlled in these PLCs is read and trended by a Supervisory Control and Data Acquisition (SCADA) system. The SCADA system is made up of a combination of software packages and hardware within the plant. SCADA allows plant operators to remotely access and control equipment like pumps, valves, and gates, trends historical data, and sends alarms when a parameter is out of its acceptable range. This remote monitoring and control greatly improves the efficiency of plant operation, and more importantly, it improves treatment through precise process adjustments, and allows operators to quickly respond to dynamic process conditions. The existing SCADA system is nearing the end of its useful life and is in need of both software and hardware updates.

Agenda Item No. 11
Council Agenda Report
Contract For Design Of El Estero Water Resource Center SCADA Upgrades Project March 1, 2022

Page 2 ends

The older technology currently used puts the plant at increased cybersecurity risk, as well as the risk of failure to a critical system for plant operation.

Project Description
This contract provides design services from Aspect Engineering Group (Aspect) to assess and design an updated SCADA system for El Estero. Aspect will review the existing SCADA system and perform a gap analysis to identify areas for improvement. With this holistic understanding, Aspect will use their industry expertise to recommend combinations of software and hardware that will both update the existing system and improve functionality.

The hardware portion of the work consists of replacing much of the SCADA equipment around El Estero, such as servers, operator computers, and any needed hardware in PLC cabinets to meet the demands of updated software. The software portion of the work will assess and selectively choose modules and updates to the main SCADA software, the alarm callout system, data trending software, and reporting software that will best meet the needs of current and future plant operations. It will take approximately five months to produce the design package, which includes in-depth collaboration with El Estero staff.

The design package will include hardware and software specifications, an implementation plan including transition sequencing, and start-up testing procedures among other necessary documentation to procure and install the new system.

Implementation Phase
The Request for Proposal (RFP) included language to retain the same integrator for both design and implementation due to the specialized and technical nature of this work. It is critical for project success that the same firm design and implement the work. Consultant continuity ensures key decisions and logic processes are upheld during implementation and reduces potential errors when installing such a complex system. Aspect is qualified to provide these services. Both portions of work are considered professional services.

The City will enter negotiations with Aspect on cost and scope for the implementation phase after successful completion of the design. Staff will return to Council for approval of the implementation contract, which is anticipated to be in the fall of 2022.

Design Phase Consultant Engineering Services
Staff recommends that Council authorize the Public Works Director to execute a contract with Aspect in the amount of $124,637 for design and $12,464 for potential extra services, for a total amount of $137,101. The installation work will be based on the design work accomplished in phase 1 and is subject to a future contract amendment that will require Council approval. Aspect is experienced in this type of work and was selected as part of a competitive RFP process. The City sent the RFP to four integration firms and received three proposals. Aspect was selected based on its strong qualifications and detailed, thoughtful approach to upgrading El Estero’s SCADA system.

Council Agenda Report
Contract For Design Of El Estero Water Resource Center SCADA Upgrades Project March 1, 2022

Page 3 ends

BUDGET/FINANCIAL INFORMATION:

The following summarizes all estimated total Project costs:

ESTIMATED TOTAL PROJECT COST:

Design (by Contract) $137,101
Estimated Project Administration – City Staff
(Design and Implementation)
$30,000
Estimated Peer Review of Design (by Contract) $20,000
Subtotal $187,101
Estimated Implementation Contract w/Change
Order Allowance (FY23)
$814,000
Subtotal $814,000
TOTAL PROJECT COST $1,001,101
There are sufficient appropriated funds in the Wastewater Capital Fund to cover the cost of design. Implementation funding will be budgeted as part of the Fiscal Year 2023 Wastewater Capital Budget.

A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

ENVIRONMENTAL REVIEW:

This project does not require California Environmental Quality Act review, as it entails software and computer hardware upgrades to an existing facility.

WATER COMMISSION RECOMMENDATION:

This item was presented to the Water Commission at its meeting on February 17, 2022, and the Commission voted 4-0 in support of staff’s recommendation.

PREPARED BY: Philip Maldonado, P.E., Acting Principal Civil Engineer/ZS/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: March 1, 2022
TO: Mayor and Councilmembers
FROM: Field Operations, Police Department
SUBJECT: Police Canine Emergency Veterinary Servcies Contract RECOMMENDATION:

That Council approve the Professional Services Agreement with Sage Veterinary Centers for a term of three (3) years, with two one-year optional extensions, to provide emergency care for the Santa Barbara Police Department canines.

DISCUSSION:

The Canine Unit Program was established to augment police services provided to the community. Canine units are used to supplement police operations when locating individuals or contraband, and to apprehend criminal offenders. Canine units play an important role for both the community and the officers who work to provide a presence and safety. The Canine Unit Program relies entirely on donations from the community for the continued development of highly skilled and trained teams of handlers and canines.

The funds in the Canine Unit Trust Fund are used for the purchase of new canines, for regular care and maintenance of the canines, and for necessary training for the handlers.

The current program consists of two canines, “Murdoch” and “Kyra.” While the training and day-to-day deployment of the canines seek to reduce the probability of injury to the canines, the unpredictability of the job remains constant.. Sage Veterinary Centers have been determined to have the most comprehensive local medical treatement facility for emergency use. This contract is for as-needed services. The hospital must obtain permission from a Police Department manager prior to any one service that exceeds $2,500.

Agenda Item No. 12
Council Agenda Report
Police Canine Emergency Veterinary Services Contract
March 1, 2022

Page 2 ends

BUDGET/FINANCIAL INFORMATION:

The Police Department staff seeks approval to enter into a 3-year emergency services contract with Sage Veterinary Centers with an annual service cost capped at $35,000 and a total value of $105,000 for the three years. The Canine Unit Trust fund has sufficient funds available to cover the potential costs of emergency care for the length of this service contract through continued donations.

PREPARED BY: Marylinda Arroyo, Police Commander
SUBMITTED BY: Bernard Melekian, Interim Chief of Police APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 1, 2022
TO: Mayor and Councilmembers
FROM: Transportation Planning and Parking and Engineering Divisions, Public Works Department
SUBJECT: Increase The Contracts For Construction Management And Environmental Mitigation And Monitoring Services Of The Las Positas And Modoc Roads Multiuse Path Project
RECOMMENDATION: That Council:

A. Authorize the Public Works Director to execute the First Amendment to the City Professional Services Contract No. 26,724 with Rincon Consultants Inc., in the amount of $348,836 for environmental monitoring and restoration specialist services, and approve expenditures of up to $34,883 for extra services that may result from necessary changes in the scope of work; for a total contract amount of $1,328,667;
B. Authorize the Public Works Director to execute the First Amendment to the City Professional Services Contract No. 26,723 with Filippin Engineering Inc., in the amount of $41,625 for construction management services, for a total contract amount of $1,039,125; and
C. Approve the allocation of available appropriations in the Pavement Maintenance Program in the Measure C Capital Fund in the amount of $383,719, to cover the cost increase for the Las Positas and Modoc Roads Multiuse Path Project.

DISCUSSION:

Background
The Las Positas and Modoc Roads Multiuse Path Project (Project) recently constructed a separated pathway for bicyclists, runners, and pedestrians of all ages and abilities along Las Positas and Modoc Roads. The pathway begins on Modoc Road at the western City limits and continues east for approximately one mile toward the intersection of Modoc and Las Positas Roads, then veers south for approximately 1.6 miles along the west side of Las Positas Road to Cliff Drive. The Project removed a significant safety barrier along the Pacific Coastal Bike Route and the Crosstown Bike Route.

Agenda Item No. 13
Council Agenda Report
Increase The Contracts For Construction Management And Environmental Mitigation And Monitoring Services Of The Las Positas And Modoc Roads Multiuse Path Project March 1, 2022

Page 2 ends

In 2016, the City adopted a Mitigated Negative Declaration (MND) under the California Environmental Quality Act (CEQA) for the Project that established habitat mitigation measures, including a Tree Protection and Replacement Plan and requirements for the replacement of permanently impacted habitat areas. There are limited potential habitat mitigation opportunity areas on City-owned land within the immediate Project vicinity along the Arroyo Burro Creek watershed corridor. As a result, the MND included an additional offsite Mitigation Plan for coastal sage scrub habitat loss and tree removal impacts at either Arroyo Burro Open Space or at Barger Canyon. However, further analysis concluded that the topography constraints at Barger Canyon would make the coastal sage scrub installation and seven-year landscaping maintenance cost infeasible. It was also later determined that a grant conservation easement at Arroyo Burro Open Space prohibited the installation of mitigation projects at that site. Therefore, staff investigated two alternative locations for offsite mitigation, including Mesa Creek, located just southeast of the Cliff Drive roundabout, and Elings Park.

On June 16, 2020, Council awarded the Project construction contract to C.A. Rasmussen, Inc., in the amount of $11,762,731. Council also authorized the Public Works Director to execute a contract with Filippin Engineering, Inc., (Filippin) in the amount of $971,107 for construction management services, and Rincon Consultants, Inc., (Rincon), in the amount of $859,044 for environmental monitoring and restoration specialist services during construction, including maintenance and monitoring of all landscape material for seven years after their installation. Rincon has been assisting the City finalize the off-site mitigation planning efforts for the Project, including the coordination effort with the Elings Park Foundation (Foundation), where a majority of the off-site mitigation planting is proposed. The Project, Elings Park, and Mesa Creek are all located within the Arroyo Burro Creek watershed.

The Foundation and the City have cooperated and signed an agreement to develop and implement part of the off-site mitigation plan for the required restoration to be placed along the Veterans Walk and Oak Grove, both located within Elings Park on a parcel that is owned by the City. City staff have verified that this mitigation plan will fulfill the CEQA mitigation requirements for oak tree and coastal sage scrub mitigation for the Project and will not interfere with existing hazardous remediation efforts at Elings Park. Use of City property for habitat mitigation furthers the Foundation’s charitable purposes and benefits the City property by enhancing its environmental quality and use for community recreation and open space purposes.

Additional Environmental Mitigation and Monitoring Services Rincon’s original scope of work was limited to habitat restoration work within the 2.6 miles of the multiuse path and did not include the addition of installation at Elings Park or at Mesa Creek. Adjustments to the original scope now include three off-site mitigation sites, including 4.12 acres of coastal sage scrub at Mesa Creek, 102 coast live oaks at Elings Park Oak Grove, and 1.49 acres of coastal sage scrub at Elings Park Veterans Memorial Walk (see Attachment). The added costs will cover the purchase and installation of additional plants from native nurseries. The added off-site mitigation locations will become Council Agenda Report
Increase The Contracts For Construction Management And Environmental Mitigation And Monitoring Services Of The Las Positas And Modoc Roads Multiuse Path Project March 1, 2022

Page 3 ends

part of the maintenance and monitoring for seven years, as required by the regulatory permitting agencies.

City staff followed strict Caltrans Local Assistance Procedures Manual (LAPM) requirements in selecting Rincon’s services and agreed upon fair and reasonable compensation for the services to be provided.

Additional Construction Management Services
The Project’s construction completion was originally scheduled for October 27, 2021, per the contractor’s approved baseline schedule. However, a time extension for Project completion was required and was attributed to the following reasons:
 weather (rain) days accounted for 21 working days;
 delays related to the re-design of certain segments to the pathway alignment during construction in order to reduce the number of impacts to native trees, and opportunities for significant cost savings resulting from the reduction of retaining wall quantities;
 nesting birds caused a delay in the construction of the retaining wall at Veronica Springs Road;
 additional scope added to the Project as requested by the City;  material shortages and delivery delays, particularly for the cable railing, caused by the COVID-19 pandemic; and
 contractor’s failure to meet certain critical items of work per the approved baseline schedule.

Filippin was selected as the best-qualified firm after a competitive selection process following Caltrans LAPM requirements to provide construction management, inspection, labor compliance, and material testing for the Project. Filippin’s professional services have increased due to the time extension and delays in the Project completion, as well as to cover the cost for negotiations with the contractor for any potential delay claims.

Current Project Status
The Project is substantially complete, and a ribbon-cutting ceremony is scheduled for Thursday, March 3, 2022. Rincon will be performing the maintenance and monitoring for all trees and habitat restoration areas installed for the Project for the next seven years.

Council Agenda Report
Increase The Contracts For Construction Management And Environmental Mitigation And Monitoring Services Of The Las Positas And Modoc Roads Multiuse Path Project March 1, 2022

Page 4 ends

BUDGET/FINANCIAL INFORMATION
The following summarizes the expenditures recommended in this report:

CONTRACTS FUNDING SUMMARY
Rincon Consultants, Inc.

Base
Contract
Change Order Total
Initial Contract Amount $859,044 $85,904 $944,948
Proposed Increase $348,836 $34,883 $383,719
Total $1,207,880 $120,787 $1,328,667
Filippin Engineering, Inc.

Base
Contract
Change Order Total
Initial Contract Amount $971,107 $26,393 $997,500
Proposed Increase $41,625 $0 $41,625
Total $1,012,732 $26,393 $1,039,125
This Project is funded primarily with Active Transportation Program grant funds. There are sufficient appropriations available from Council’s previous grant appropriation to cover Filippin’s additional cost due to the Project’s overall cost savings. Also, with the recommended allocation of $383,719 of Measure C funds from the Pavement Maintenance Program, there will be sufficient appropriations in the Streets Grant Capital Fund to cover Rincon’s additional costs for the support services contract.

Council Agenda Report
Increase The Contracts For Construction Management And Environmental Mitigation And Monitoring Services Of The Las Positas And Modoc Roads Multiuse Path Project March 1, 2022

Page 5 ends

Santa Barbara City CouncilMarch 1, 2022

Santa Barbara City Council
March 1, 2022