Santa Barbara City Council
June 7, 2022

These scope changes necessitate an amendment to the existing contract with Electric Citizen, LLC, the City’s primary contractor on the project.

The expected go-live for the new website platform is early summer 2022.

BUDGET/FINANCIAL INFORMATION:

The required changes to the scope of work requires a change order to the existing contract with Electric Citizen, LLC in the amount of $67,150. This will bring the total notto-exceed amount to $367,050.

To offset some of the additional unanticipated costs, it was determined that it would be beneficial to bring project management of the website replacement in house to be performed by the IT Director. Plante & Moran, PLLC was being utilized for project management, but this scope of work was cancelled in January 2022. Staff plans to use the cost savings to fund a portion of the change order.

Inadequate expenditure appropriations exist in the Information Technology Capital Fund budget in Fiscal Year 2022. However, adequate, available reserve funds exist in the Information Technology Capital Fund to fund the requested change order. Staff recommends that Council approve an increase in appropriations in the amount of $44,500.

After approval of this appropriation request, the Information Technology Capital Fund is still projected to achieve reserve policy targets by the end of Fiscal Year 2022.

A copy of the contract will be available for public review via request to [email protected].

ATTACHMENTS: Budget Overages for WARP Project
PREPARED BY: Scott Nelson, Webmaster
SUBMITTED BY: Justin Cure, Information Technology Director APPROVED BY: City Administrator's Office
Here is a detailed breakdown of current budget overages for the WARP project. >\SQSXJV1_MQN^ 5\YWB1
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RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 21-045,
ADOPTING THE BUDGET FOR FISCAL YEAR 2022, FOR

NEW WEBSITE CONTENT MANAGEMENT SYSTEM

PROJECT
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2021; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2021;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 21-045, this Resolution approves the amendment to the budget as provided herein.

NOW, THEREFORE, be it resolved by the Council of the City of Santa Barbara that in accordance with the provisions of Section 1205 of the City Charter, the budget for the fiscal year 2022, as adopted by Resolution No. 21-045, is hereby amended as follows:

1. The Council approves of appropriating available reserve funds that exist in the Information Technology Capital Fund into the Information Technology Capital budget in Fiscal Year 2022 in the amount of $44,500 in order to fund the revised Electric Citizen, LLC contract for the new Website Content Management System project.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Transportation Division, Public Works Department
Administration Division, Parks and Recreation Department SUBJECT: Adoption Of A Resolution Prohibiting Overnight Stopping On The 1200 Block Of Shoreline Drive Adjacent To Shoreline Park RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Prohibiting Stopping, Parking, or Standing of Vehicles on the 1200 Block of Shoreline Drive Adjacent to Shoreline Park from 12:00 am to 4:00 am and Authorizing Removal of Vehicles Unlawfully Parked or Left Standing in Violation of the Prohibition.

DISCUSSION:

Over the course of the last several years, the City has received multiple community requests to restrict street parking on the south side of Shoreline Drive adjacent to Shoreline Park. Parking on the ocean side of Shoreline Drive adjacent to the Park is currently restricted due to the existence of a bike lane, except at the east end of the park where there is a parking turnout. The parking turnout is currently unrestricted and provides parking for both the park as well as for access to Leadbetter Beach. However, this area is frequently used overnight when the park is closed. Community members expressed concerns about vehicle occupants using Shoreline Park during closure hours.

Parking is prohibited in the Shoreline Park parking lots when the Park is closed.

It is recommended that the City Council prohibit parking and stopping from 12:00 a.m. to 4:00 a.m. in the 1200 block of Shoreline Drive adjacent to Shoreline Park. The proposed prohibition is intended to provide a tool for enforcement of after-hours use of City parks and to deter misuse of the park and adjacent neighborhood. In addition, it is recommended that the City Council authorize towing of vehicles parking in violation of the no parking and stopping restrictions, consistent with the tow authorization that applies to parking lots within parks. Establishment of the parking restriction and tow authorization would allow the Police Department to issue citations and also tow vehicles if needed.

Agenda Item No. 7
File Code No. 570.05
Council Agenda Report
Adoption Of A Resolution Prohibiting Overnight Stopping On The 1200 Block Of Shoreline Drive Adjacent To Shoreline Park
June 7, 2022

This restriction will not have an adverse impact on coastal access. The no parking and stopping hours are consistent with other areas in the coastal zone including the harbor and beach parking lots. Untimed parking will continue to be free and available from 4:00 a.m. to 12:00 a.m. every day. The Harbor Parking Lot will also continue to operate 24 hours per day for night-time coastal access.

Adoption of the parking restriction and tow authorization is accomplished by a City Council resolution pursuant to Vehicle Code Sections 22507 and 22651(n). Upon adoption of the proposed resolution, the Public Works Streets Division will post signs advising motorists of the restrictions. The restrictions will be effective upon posting the required signs. If this resolution is approved, staff will issue warnings rather than citations for the first eight weeks after posting to help educate impacted community members of this change.

OUTREACH:

On May 31, staff placed temporary signs, which are still in place, every 50 feet along the affected parking area on Shoreline Drive with information about the proposed resolution, how to submit feedback on it, and the City Council date.

BUDGET/FINANCIAL INFORMATION:

The Public Works Department has sufficient appropriations in the Fiscal Year 2022 budget for needed signage associated with this resolution.

PREPARED BY: Jazmin LeBlanc, Assistant Parks and Recreation Director SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office
1 RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA PROHIBITING STOPPING,

PARKING, OR STANDING OF VEHICLES ON THE
1200 BLOCK OF SHORELINE DRIVE ADJACENT TO
SHORELINE PARK FROM 12:00 AM TO 4:00 AM

AND AUTHORIZING REMOVAL OF VEHICLES

UNLAWFULLY PARKED OR LEFT STANDING IN

VIOLATION OF THE PROHIBITION
PURSUANT TO CALIFORNIA VEHICLE CODE SECTIONS 22507 AND
22651(n), THE COUNCIL OF THE CITY OF SANTA BARBARA RESOLVES AS FOLLOWS:

1. It is unlawful to stop, park, or leave standing any vehicle on the 1200 block of Shoreline Drive adjacent to Shoreline Park from 12:00 AM to 4:00 AM in violation of any sign giving notice of the prohibition.

2. Any City police officer, park ranger, peace officer, or regularly employed and salaried employee responsible for enforcing parking laws and regulations within the City is authorized to remove any vehicle parked or left standing on the 1200 block of Shoreline Drive adjacent to Shoreline Park from 12:00 AM to 4:00 AM provided that a sign has been posted giving notice of the removal.

3. The Public Works Director is authorized to develop, acquire, and post appropriate signs to implement this resolution.

4. Removal of vehicles pursuant to this resolution shall be at the expense of the vehicle owner.

5. Restriction of parking between the hours of 12:00 AM and 4:00 AM on the 1200 block of Shoreline Drive adjacent to Shoreline Park is consistent with Policy 3.1-36 of the City’s Local Coastal Program because it will not have an adverse impact on coastal access. The restriction is consistent with similar parking restrictions that apply to other areas in the coastal zone including the City’s harbor and beach parking lots. Further, Shoreline Park and the parking lots within Shoreline Park are closed to public use every day from one-half hour after sunset to sunrise.

6. This resolution is effective upon adoption and remains in effect until superseded or repealed.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Public Works Downtown Team, Public Works Department SUBJECT: Adoption Of Resolution Regarding Intention To Levy Parking And Business Improvement Area Assessment Rates And Parking And Business Improvement Area Annual Assessment Report For Fiscal Year 2023 – Intention To Levy
RECOMMENDATION: That Council:

A. Approve the Parking and Business Improvement Area Annual Assessment Report 2023; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Declaring Council’s Intention to Levy Parking and Business Improvement Area Assessment Rates for Fiscal Year 2023, at a Public Hearing to be held on June 21, 2022, at 2:00 p.m.

DISCUSSION:

The City Council, as the governing body of the Parking and Business Improvement Area (PBIA), is required by California State Law to prepare and adopt an annual report describing any proposed changes to the PBIA District’s boundaries, benefit zones, business classification, and method and basis of levying assessments. The annual report must be prepared prior to the beginning of each fiscal year. On May 12, 2022, the Downtown Parking Committee, serving as the PBIA Advisory Board, recommended approval of the PBIA Annual Assessment Report for Fiscal Year 2023, included as the Exhibit to the Resolution. The PBIA is the assessment mechanism that allows the City of Santa Barbara to provide affordable parking rates to customers, visitors, and clients of the Downtown area.

The Downtown Parking Program budget is funded primarily by hourly parking revenues and, to a lesser extent, by PBIA assessments and parking permit sales. PBIA revenues are used for the operation of the Downtown Parking System. These funds partially finance the operation and maintenance of the parking lots. This 49-year partnership between the Downtown business community and the Downtown Parking Program has helped to keep Santa Barbara’s Downtown economically viable.

Agenda Item No. 8
File Code No. 550.01
Council Agenda Report
Adoption Of Resolution Regarding Intention To Levy Parking And Business Improvement Area Assessment Rates And Parking And Business Improvement Area Annual Assessment Report For Fiscal Year 2023 – Intention To Levy
June 7, 2022

Rev. 040120
For Fiscal Year 2023, staff proposes a status quo Draft Annual Report with no changes proposed for the PBIA benefit zones, the basis for levying assessments, or for the calculations and formulas or classifications of businesses.

In Fiscal Year 2020, the City hired Walker Consultants to review the PBIA’s assessment methodologies, calculate the parking benefit, and comment on the Downtown Parking Program’s operational model. Due to the COVID-19 crisis, that effort was placed on hold.

Downtown Parking staff will evaluate whether changes to the PBIA assessment methodology are warranted prior to or in concert with the implementation of the State Street Master Plan.

BUDGET/FINANCIAL INFORMATION:

The PBIA assessment usually generates approximately $1 million in revenue each year.

Due to the ongoing impacts of the COVID-19 pandemic, revenues for Fiscal Year 2022 will be lower than usual. PBIA contributions for Fiscal Year 2022 are estimated to be $974,445. PBIA revenues for Fiscal Year 2023 are proposed at $900,000. However, the FY 2023 budget was prepared prior to the receipt of PBIA revenues for the first quarter of 2022. PBIA receipts for the first quarter were stronger than expected, causing an upward revision of the year-end projection for FY 2022. Based on these receipts, staff expects to receive approximately $1 million in PBIA revenue for FY 2023.

The Annual Report will be filed with the City Clerk’s Office as required by law and is available upon request by contacting the Public Works Department at [email protected] or (805) 564-5377.

ATTACHMENT: Annual Assessment Report Draft
PREPARED BY: Jessica Grant, Interim Public Works Downtown Manager/SC/MS/em SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
Attachment
City of Santa Barbara
Parking and Business
Improvement Area
(PBIA)
Fiscal Year 2023
ANNUAL

ASSESSMENT
REPORT

TABLE OF CONTENTS
Page Number
INTRODUCTION ......................................................................................... 1 SECTION I. PROPOSED CHANGES ...................................................... 1 SECTION II. IMPROVEMENTS AND ACTIVITIES ................................... 1 SECTION III. ESTIMATED OPERATING COSTS OF THE CITY'S

DOWNTOWN PARKING PROGRAM
FOR 2023............................................................................. 2 SECTION IV. PROJECTED DOWNTOWN PARKING PROGRAM
REVENUES DERIVED......................................................... 2 SECTION V. REVENUE CARRYOVERS.................................................. 3 SECTION VI. PBIA RATES SECTION .................................................... 3-4 -1-

INTRODUCTION
This report, filed annually as required by the California Parking and Business Improvement Law of 1989, will provide an explanation of any proposed changes, including, but not limited to the boundaries of the adopted City of Santa Barbara Downtown Parking and Business Improvement Area (PBIA) or any benefit zones within the area, the basis for levying the assessments, and any changes in the classifications of businesses.

The PBIA assessments benefit the City of Santa Barbara’s Downtown Parking Management Program, which operates and maintains seven public parking lots and five structures in the downtown core business area, providing a total of 3,215 parking spaces. The Program is oriented towards clients and shoppers, and is directed by the City’s Circulation Element to increase the available public parking and reduce the need for employee parking in the downtown core. Employee parking is mitigated by Alternative Transportation initiatives to increase carpooling, bicycling, and mass transit programs. The Downtown Parking budget is funded primarily by hourly parking revenues, and to a lesser extent, by the PBIA assessment and parking permits revenues. The PBIA revenues are directed solely towards hourly employee salaries and utility costs in support of the operation and maintenance of the parking lots.

Revenues derived from hourly parking fees and monthly permits support the balance of operating expenses remaining from the PBIA assessment and Alternative Transportation programs.

Attached hereto and incorporated by reference is the “Addendum to the Parking and Business Improvement Area Final Engineer's Report of Formula and Methodology of Assessment dated October 5, 1999” (Addendum), which is on file at the City Clerk's Office, and which shall form the basis of the Annual Report.

I. PROPOSED CHANGES
For Fiscal Year 2023, there are no changes to the PBIA benefit zones, the basis for levying the assessments or any changes in the classifications of businesses.

II. IMPROVEMENTS AND ACTIVITIES
The PBIA assessments replace the requirements placed on businesses to provide their own onsite customer parking. A parking rate, designed to promote short-term customer and client parking is currently in effect in all City-operated Downtown Parking lots. These facilities are maintained and operated by the City's Downtown Parking staff. -2-
IV. PROJECTED FISCAL YEAR 2023 DOWNTOWN PARKING PROGRAM REVENUES Revenue Total
Hourly Revenue $6,770,682
Monthly Parking $827,622
Commuter Parking $213,360
Billed Revenue $15,000
Bicycle Parking $2,160
Electric Vehicle Charging Fees $30,000
Interest Income $37,400
Pass-Through $773,986
Permit Replacements $600
Project Planner Revenue $72,023
Rents $503,365
Residential Permits $96,295
Special Parking $13,004
Misc & Insurance Reimbursements $11,500
Total Operating Revenues $9,366,997
PBIA Assessment $900,000
Total Revenue $10,266,997
III. ESTIMATED OPERATING COSTS OF THE CITY'S DOWNTOWN PARKING PROGRAM FOR FISCAL YEAR 2023
Expenses PBIA Parking Program Total
Allocated Costs $2,051,734 $2,051,734
Appropriated Reserves $10,000 $10,000
Credit Card Fees $96,414 $96,414
Crossing Guards $107,188 $107,188
Downtown Ambassador Program $285,036 $285,036
Hourly Salaries & Benefits $1,726,447 $200 $1,726,647
New Beginnings RV Program $43,500 $43,500
Permanent Salaries & Benefits $3,143,183 $3,143,183
Plaza Support & Maintenance $902,942 $902,942
Special Projects $200 $200
Supplies & Services $897,812 $897,812
Utilities $219,000 $115,225 $334,225
Total Operating Expenses $1,945,447 $7,653,434 $9,598,881 Capital Program Expenses $718,750 $718,750
Total Expenses $1,945,447 $8,372,184 $10,317,631
-3-
The PBIA assessments, as estimated, will cover approximately 9% of the annual operating expenses for Fiscal Year 2023.

IV. REVENUE CARRYOVERS
No excess PBIA revenues will be carried over from the Fiscal Year 2022 Operating Budget.

V. PBIA RATES
A more detailed basis for levying the assessment is explained in the Addendum to the 1999 Engineer's Report.

I. Retail and/or Wholesale Businesses (Including Restaurants):

Group A: Average sale of less than $20, $0.56 per $100 of gross sales.

Group B: Average sale between $20 and $100, $0.29 per $100 of gross sales.

Group C: Average sale of more than $100, $0.16 per $100 of gross sales.

Group D: Movie theaters only, $0.16 per $100 of gross sales.

Group E: Fitness Facilities/Health Clubs, $0.29 per $100 of gross sales.

Average sale is computed by dividing the total gross sales for the year by the number of sales transactions.

II. Financial Institutions:
$0.48* per square foot of usable space.

III. Stock and Bond Brokerage Offices:
$81.30* per broker.

IV. Transit Facilities and Bus Depots:
$0.06* cents per square-foot of usable building space.

V. Professional:
$32.50* per person practicing the profession, and $16.30* for each nonprofessional.

VI. All Categories Not Otherwise Provided For:
-4-
Group A: Educational Facilities (non-public) - $0.19* per square foot of usable building space.

Group B: Miscellaneous: $0.19* per square foot of usable space.

VII. Hotel and Motels:
# of assessed rooms x $1.50/day x 30 days x 3 months x .50 occupancy = quarterly charges
Assessed rooms = # of guest rooms (-) on-site parking spaces provided No patron parking credit would be offered as it is part of the calculation. *Rates for these categories are shown for annual assessment. To determine quarterly payments, divide rates by four.

RESOLUTION NO. _____

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

INTENTION TO LEVY PARKING AND BUSINESS

IMPROVEMENT AREA ASSESSMENT RATES FOR
FISCAL YEAR 2023, AT A PUBLIC HEARING TO BE
HELD ON JUNE 21, 2022, AT 2:00 P.M.

WHEREAS, pursuant to Section 36534 California Streets and Highways Code, it is the intention of the Council of the City of Santa Barbara, to conduct a public hearing to determine whether to fix and assess a Fiscal Year 2023 Downtown Parking and Business Improvement Area (hereinafter referred to as PBIA), as such benefit assessment area has been established by Chapter 4.37 of the Santa Barbara Municipal Code, adopted on September 10, 1991;
WHEREAS, upon the completion of a public hearing, it shall be the intention of the City Council to Levy and Collect a benefit assessment within the PBIA as that area is described in the Final Engineer’s Report, approved by the City Council on October 5, 1999, and in the 1999 PBIA Area Map, on file with the City Clerk of the City of Santa Barbara;
WHEREAS, for Fiscal Year 2023, the improvements and activities to be provided shall consist of a transfer of funds to the City’s Public Works Downtown Team of the Public Works Department, which shall be exclusively used to support the maintenance of the low hourly parking rates to all persons who park automobiles within the City-owned or operated hourly public parking lots within the PBIA area; and WHEREAS, a more detailed description of the improvements and activities to be provided to the Downtown area of Santa Barbara and the benefit to the assessed businesses may be found in the Final Engineer’s Report, the Addendum to the Final Engineer’s Report of Formula and Methodology of Assessments dated April 7, 2010, and the PBIA Annual Assessment Report for Fiscal Year 2023 (hereinafter referred to as Annual Report, attached as Exhibit), which was reviewed and approved by the City’s Downtown Parking Committee, serving as the PBIA Advisory Board, as required by Section 4.37.145 of the Santa Barbara Municipal Code, and which Annual Report is on file with the City Clerk and available for review or copying by the public by contacting the Public Works Department.

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

SECTION 1. It is the intention of the City Council to levy and collect assessments with the PBIA for the Fiscal Year of 2023, within the boundaries of the PBIA, as such boundaries were established upon the enactment of Chapter 4.37 of the Santa Barbara Municipal Code on September 10, 1991, as amended by the City Ordinance No. 5126, adopted October 5, 1999, and by the approval of the related map on file with the City Clerk. It is also the City Council’s intention to confirm the method and basis of assessment as established by the City Council upon the enactment of Santa Barbara Municipal Code Chapter 4.37, and as described in the Annual Report.

SECTION 2. The proposed improvements and activities to be provided within the Downtown PBIA for Fiscal Year 2023 will consist of the benefit of reduced on-site parking requirements due to proximity to a public lot, and the maintenance of the low hourly parking rates for those persons using the City’s Downtown public off-street parking facilities, as more fully described in the Annual Report.

The actual assessments to be levied and collected are described in more detail in the Final Engineer’s Report, approved by the City Council on October 5, 1999, and the Addendum to the Final Engineer’s Report of Formula and Methodology of Assessments, approved by the City Council on May 25, 2010.

SECTION 3. Time and place for the public hearing to consider the intention of the City Council shall be during the 2:00 p.m. session of the Council’s regularly scheduled meeting of June 21, 2022. On Thursday, June 16, 2022 an Agenda with all items to be heard on Tuesday, June 21, 2022, including the public hearing will be available online at www.SantaBarbaraCA.gov/CAP. The agenda includes instructions for participation in the meeting.

SECTION 4. Written and oral protests to the proposed Downtown PBIA Annual Assessments for Fiscal Year 2023, as described in the Annual Report, may be made at the above-described public hearing provided that such protests are in the form and manner required by Sections 36524 and 36525 of the California Streets and Highways Code.

SECTION 5. The City Clerk shall give notice of the above-described public hearing by causing a copy of this resolution of intention to be published in a newspaper of general circulation in the City, no less than seven days prior to June 21, 2022.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Public Works Downtown Team and Engineering Divisions, Public Works Department
SUBJECT: Award Of Contract And Adoption Of Resolution Regarding Appropriations For Construction Of Westside Community Paseos Project
RECOMMENDATION: That Council:

A. Award a contract with Lash Construction, Inc., in their low bid amount of $2,423,489 for construction of the Westside Community Paseos Project, Bid No. 3914, and authorize the Public Works Director to execute the contract and approve expenditures up to $557,402 to cover any cost increases that may result from contract change orders for extra work and differences between estimated bid quantities and actual quantities measured for payment; and B. Adopt a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 21-045, Adopting the Budget for Fiscal Year 2022, to Appropriate Active Transportation Program Grant Funds and City Funds for the Westside Community Paseos Project.

EXECUTIVE SUMMARY:

The Westside Community Paseos Project (Project) is a Vision Zero project that will create safe and efficient walking and biking connections within and from the Westside neighborhood to the Downtown area, the Eastside neighborhoods, and to schools and parks. The Project is funded primarily through Active Transportation Program (ATP) grant funds. Staff recommends that City Council award a contract for construction with Lash Construction, Inc., (Lash), appropriate ATP grant funds for construction, and appropriate City funds for remaining design costs.

DISCUSSION:

Project Description
The Project creates low vehicular volume, bike-friendly streets through the Westside neighborhood (primarily on Gillespie and San Pascual Streets) connecting neighborhood Agenda Item No. 9
File Code No. 670.08
Council Agenda Report
Award Of Contract And Adopiton of Resolution Regarding Appropriations For Construction Of Westside Community Paseos Project
June 7, 2022

schools. It also provides a commuter and cross-town route for cyclists traveling through the Westside to other destinations. The route will extend from San Andres Street on the Westside, over U.S. Highway 101 along Micheltorena Street, leading to the Downtown areas. It will connect to new bike routes constructed through the Eastside Community Paseos Project at Santa Barbara High School.

The Project’s limits are shown in the Attachment. The Project includes the following:
 Class III bike-friendly routes;
 Class I separated multiuse path;
 Class IV protected contraflow bike lane;
 Buffered and raised bike lanes;
 Access ramps;
 Landscaped peninsulas and speed humps;
 Traffic diverters;
 Green conflict markings at intersections;
 Enhanced crosswalks;
 Traffic signals;
 Rectangular rapid flashing beacons;
 Improved signage and street lighting; and
 Landscaping and street trees.

Contract Bids
A total of three bids were received for the subject work, ranging as follows:

BIDDER BID AMOUNT

1. Lash Construction, Inc.

Santa Barbara, CA
$2,423,488.50

2. Granite Construction
Santa Barbara, CA
$3,491,491.00

3. Toro Enterprises
Oxnard, CA
$3,520,891.25
The low bid of $2,423,488.50, submitted by Lash is an acceptable bid that is responsive to, and meets the requirements of, the bid specifications.

The change order funding recommendation is $557,402, or twenty-three percent of the total bid.

Community Outreach
Council Agenda Report
Award Of Contract And Adopiton of Resolution Regarding Appropriations For Construction Of Westside Community Paseos Project
June 7, 2022

The Project is included in the Council-adopted 2016 Bicycle Master Plan (BMP) to address community feedback indicating the need for strong north-south connections to neighborhood schools within the Westside, and a strong bike commuter connection within the Westside and to the Downtown and Eastside neighborhoods. In addition to robust community engagement during the BMP planning effort, the Project was part of the discussion in the Westside and Lower West Neighborhood Transportation Planning effort that consisted of several workshops and public hearings in 2019 and 2020. During that time, the Project’s scope was modified to include the design of bike-friendly streets on Gillespie and San Pascual Streets instead of Chino Street in the Westside. After Council adopted the Westside and Lower West Neighborhood Transportation Plan, there were three community workshops in 2020 during the Project’s design phase, as well as Council hearings related to design fund appropriations and one hearing on the design treatments along Sola Street. Residents who live directly on the Project routes were notified by a combination of mailed notices, media posts, interested parties lists, City News in Brief, and Nextdoor.com.

Community outreach will continue before and during construction. Signs have been posted at various intersections and midblock crosswalks along portions of Gillespie, San Pascual, West Mission, West Micheltorena, Castillo, Sola, and Nopal Streets to inform residents what to expect. Project construction updates will be posted to the City’s Project website at SantaBarbaraCA.gov/WestsideCommunityPaseos .

BUDGET/FINANCIAL INFORMATION:

The Project is primarily funded by an ATP grant. Staff recommends appropriating ATP grant funds in the amount of $4,042,000 for the construction of the Project, and allocating available expenditure appropriations in the amount of $35,430 from the Sidewalk Repairs Project in the Measure A Capital Fund to cover remaining design costs exceeding previously appropriated ATP grant and City match funds for design.

The following tables summarize the expenditures recommended in this report:

CONSTRUCTION CONTRACT FUNDING SUMMARY
Contractor Basic Contract Change Funds Total
Lash Construction $2,423,488.50 $557,402.00 $2,980,890.50 TOTAL RECOMMENDED AUTHORIZATION $2,980,890.50
The following summarizes all Project design costs, construction contract funding, and other Project costs:

Council Agenda Report
Award Of Contract And Adopiton of Resolution Regarding Appropriations For Construction Of Westside Community Paseos Project
June 7, 2022

ESTIMATED TOTAL PROJECT COST
*Cents have been rounded to the nearest dollar in this table.

ATP
GRANT
CITY
SHARE
TOTAL
City Staff Costs for Design Phase $339,007 $50,423 $389,430 Survey (by Contract) $27,100 $32,208 $59,308
Soil and Infiltration Testing (by Contract) $28,893 $0 $28,893 Landscape Architect (by Contract) $0 $8,680 $8,680
Community Outreach (by Contract) $0 $11,362 $11,362
Design Subtotal $395,000 $102,673 $497,673
Construction Contract $2,423,489 $0 $2,423,489
Construction Change Order Allowance $557,402 $0 $557,402 Subtotal $2,980,891 $0 $2,980,891
Construction Management/Inspection (by
City Staff)
$259,377 $0 $259,377
Estimated Construction Management,
Inspection, and Material Testing (by Contract
– award in July)
$510,000 $0 $510,000
City Supplied Equipment $285,000 $285,000
Tree Removal (by Contract) $6,732 $0 $6,732
Landscape Architect (by Contract) $0 $4,920 $4,920
Subtotal $1,061,109 $4,920 $1,066,029
Construction Subtotal $4,042,000 $4,920 $4,046,920
TOTAL PROJECT COST $4,437,000 $107,593 $4,544,593
With the recommended appropriation of the ATP grant funds and Measure A Capital funds, there will be sufficient expenditure appropriations in the Streets Grant Capital Fund to fund all remaining Project costs. Staff anticipate returning to Council in July for award of a contract for Construction Management, Inspection, and Material Testing services.

The estimated useful life of the assets included in this Project range from fifteen to fifty years. Ongoing operational and maintenance costs are associated with the new lighting, traffic signals, rectangular rapid flashing beacons, landscaping, and street trees that will Council Agenda Report
Award Of Contract And Adopiton of Resolution Regarding Appropriations For Construction Of Westside Community Paseos Project
June 7, 2022

be installed by this Project. Approximately 6,185 square feet of landscaping, mostly within the El Pueblo Viejo District, and 46 new street trees will be added by this Project. The total cost for landscaping and new street trees, including an 18-month plant establishment period, is $136,300. In the event of policy changes due to the City’s drought, the installation of landscaping may occur at a later date.

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

ENVIRONMENTAL REVIEW
The Project received a Categorical Exemption under the California Environmental Quality Act per State Guidelines Sections 15301-Existing Facilities and 15304-Minor Alterations to Land. The Notice of Exemption was filed at the County Clerk’s Office on July 9, 2020.

ATTACHMENT: Project Location Map
PREPARED BY: Laura Yanez, P.E., Principal Civil Engineer Jessica Grant, Public Works Downtown Manager/AF/sk
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
(In Construction)
Westside Community Paseos Project
Project Location Map

ATTACHMENT
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 21-045,
ADOPTING THE BUDGET FOR FISCAL YEAR 2022, TO

APPROPRIATE ACTIVE TRANSPORTATION PROGRAM

GRANT FUNDS AND CITY FUNDS FOR THE WESTSIDE

COMMUNITY PASEOS PROJECT
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2021; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2021;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 21-045, this Resolution approves the amendment to the budget as provided herein.

NOW, THEREFORE, be it resolved by the Council of the City of Santa Barbara that in accordance with the provisions of Section 1205 of the City Charter, the budget for fiscal year 2022, as adopted by Resolution No. 21-045, is hereby amended as follows:

1. The Council approves an increase in revenue and expenditure appropriations in the Streets Grant Capital Fund in the amount of $4,042,000 for the proposed Lash Construction, Inc., contract for construction of the Westside Community Paseos Project.

2. The Council approves the allocation of available expenditure appropriations in the Sidewalk Repairs Project in the Measure A Capital Fund in the amount of $35,430 to increase revenue and expenditure appropriations in the Fiscal Year 2022 Westside Community Paseos Project in the Streets Capital Grant Fund in the amount of $35,430 to fund the non-participating costs and costs exceeding the ATP grant in the design phase of the Westside Community Paseos Project.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Fiscal Year 2022 Interim Financial Statements For The Ten Months Ended April 30, 2022
RECOMMENDATION:

That Council accept the Fiscal Year 2022 Interim Financial Statements for the ten months ended April 30, 2022.

DISCUSSION:

The interim financial statements for the ten months ended April 30, 2022 (83.3% of the fiscal year) are attached. The interim financial statements include budgetary activity in comparison to actual activity for the General Fund, Enterprise Funds, Internal Service Funds, and select Special Revenue Funds.

ATTACHMENT: Interim Financial Statements for the Ten Months Ended April 30, 2022
PREPARED BY: Doug B. Smith, Accounting Manager
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 10
File Code No. 250.02

ATTACHMENT
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
GENERAL FUND (pages 3-7)
Revenue 169,909,818 154,697,132 71,794 15,284,481 91.1% 115,696,032 Expenditures 176,893,476 139,891,039 3,800,836 33,201,602 81.2% 129,956,432 Addition to / (use of) reserves (6,983,658) 14,806,093 (3,872,630) (14,260,401) SOLID WASTE FUND (page 9)
Revenue 31,630,033 27,711,700 - 3,918,333 87.6% 24,525,061 Expenditures 30,746,869 23,612,905 706,051 6,427,912 79.1% 22,526,131 Addition to / (use of) reserves 883,164 4,098,795 (706,051) 1,998,931 WATER OPERATING FUND (page 10)
Revenue 74,257,072 55,787,225 - 18,469,847 75.1% 51,726,203 Expenditures 69,465,601 52,437,827 3,723,565 13,304,209 80.8% 45,065,399 Addition to / (use of) reserves 4,791,471 3,349,397 (3,723,565) 6,660,804 WASTEWATER OPERATING FUND (page 11)
Revenue 25,635,664 21,214,803 - 4,420,861 82.8% 20,224,819 Expenditures 26,365,890 20,210,746 1,745,710 4,409,434 83.3% 17,181,224 Addition to / (use of) reserves (730,226) 1,004,057 (1,745,710) 3,043,595 DOWNTOWN PARKING FUND (page 12)
Revenue 7,521,906 5,713,474 - 1,808,432 76.0% 4,101,355 Expenditures 8,377,227 6,425,211 444,978 1,507,038 82.0% 6,820,651 Addition to / (use of) reserves (855,321) (711,737) (444,978) (2,719,296) AIRPORT OPERATING FUND (page 13)
Revenue 27,465,652 25,551,478 - 1,914,173 93.0% 20,853,195 Expenditures 29,080,912 20,511,986 2,417,257 6,151,669 78.8% 17,941,313 Addition to / (use of) reserves (1,615,260) 5,039,492 (2,417,257) 2,911,882 GOLF COURSE FUND (page 14)
Revenue 3,413,209 3,262,523 - 150,686 95.6% 3,242,021
Expenditures 3,135,685 2,311,887 645,876 177,922 94.3% 2,190,519 Addition to / (use of) reserves 277,524 950,636 (645,876) 1,051,502 FACILITIES MANAGEMENT FUND (page 15)
Revenue 6,647,183 5,273,746 - 1,373,437 79.3% 5,599,825 Expenditures 7,272,791 5,262,262 252,836 1,757,692 75.8% 5,689,088 Addition to / (use of) reserves (625,608) 11,483 (252,836) (89,264)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year) FLEET REPLACEMENT FUND (page 16)
Revenue 3,496,596 2,836,343 - 660,253 81.1% 2,865,279
Expenditures 6,738,361 2,654,255 1,137,171 2,946,934 56.3% 1,963,548 Addition to / (use of) reserves (3,241,765) 182,088 (1,137,171) 901,731 FLEET MAINTENANCE FUND (page 17)
Revenue 2,986,453 2,491,432 - 495,021 83.4% 2,454,242
Expenditures 3,169,206 2,469,789 240,950 458,468 85.5% 2,199,453 Addition to / (use of) reserves (182,753) 21,643 (240,950) 254,789 SELF INSURANCE TRUST FUND (page 18)
Revenue 10,404,522 8,686,667 - 1,717,855 83.5% 7,064,459 Expenditures 11,338,418 9,470,691 99,410 1,768,316 84.4% 7,522,413 Addition to / (use of) reserves (933,896) (784,025) (99,410) (457,955) INFORMATION TECHNOLOGY FUND (page 19)
Revenue 4,520,985 3,773,319 - 747,666 83.5% 3,220,496
Expenditures 4,639,575 3,791,886 60,911 786,778 83.0% 3,232,891 Addition to / (use of) reserves (118,590) (18,567) (60,911) (12,395) WATERFRONT OPERATING FUND (page 20)
Revenue 15,659,001 14,762,146 - 896,855 94.3% 12,763,239 Expenditures 16,211,779 12,538,012 738,878 2,934,890 81.9% 12,306,851 Addition to / (use of) reserves (552,778) 2,224,134 (738,878) 456,389 SANTA BARBARA CLEAN ENERGY FUND (page 21)
Revenue 12,523,116 6,254,780 - 6,268,335 49.9% 349,954
Expenditures 10,222,025 6,357,919 878,929 2,985,177 70.8% 106,464 Addition to / (use of) reserves 2,301,090 (103,139) (878,929) 243,490 ENERGY AND CLIMATE MANAGEMENT FUND (page 22)
Revenue 2,553,071 2,143,827 - 409,244 84.0% 2,065,705
Expenditures 2,799,561 1,683,738 265,047 850,775 69.6% 1,716,320 Addition to / (use of) reserves (246,490) 460,089 (265,047) 349,385

TOTAL FOR ALL FUNDS
Revenue 398,624,280 340,160,594 71,794 58,535,481 85.3% 276,751,884 Expenditures 406,457,374 309,630,153 17,158,403 79,668,818 80.4% 276,418,697 Addition to / (use of) reserves (7,833,094) 30,530,441 (17,230,198) 333,187 ** 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.

Revised YTD Remaining Percent Previous Change Over
Budget Actual Balance Received YTD Prior Year
TAXES
Sales and Use 23,239,045 23,609,094 (370,049) 101.6% 18,176,793 29.9% Measure C Sales Tax 24,988,418 25,205,709 (217,291) 100.9% 19,614,441 28.5% Property Taxes 42,347,386 32,851,626 9,495,761 77.6% 21,836,793 50.4% Utility Users Tax 7,315,292 6,467,997 847,295 88.4% 6,116,819 5.7% Transient Occupancy Tax 19,500,000 21,426,012 (1,926,012) 109.9% 10,808,051 98.2% Business License 2,556,359 2,415,737 140,622 94.5% 2,132,663 13.3% Cannabis Excise Tax 1,847,469 1,367,808 479,661 74.0% 1,293,214 5.8% Real Property Transfer Tax 923,776 1,175,685 (251,909) 127.3% 881,761 33.3% Total Tax Revenues 122,717,745 114,519,667 8,198,078 93.3% 80,860,535 41.6%

LICENSES & PERMITS
Licenses & Permits 151,666 163,963 (12,297) 108.1% 154,947 5.8% Total 151,666 163,963 (12,297) 108.1% 154,947 5.8%

FINES & FORFEITURES
Police 2,408,500 1,959,034 449,466 81.3% 1,475,191 32.8% Other Fines & Forfeitures 665,602 77,197 588,405 11.6% 45,509 69.6% Total 3,074,102 2,036,231 1,037,871 66.2% 1,520,700 33.9%

USE OF MONEY & PROPERTY
Investment Income 312,661 372,016 (59,355) 119.0% 336,583 10.5% Rents & Concessions 1,008,355 768,536 239,819 76.2% 271,287 183.3% Total 1,321,016 1,140,552 180,464 86.3% 607,870 87.6%

INTERGOVERNMENTAL
Library 1,139,127 1,111,796 27,331 97.6% 1,175,329 -5.4% Fire 1,628,000 2,247,430 (619,430) 138.0% 2,044,907 9.9% Other Intergovernmental 1,057,357 597,562 459,795 56.5% 1,653,699 -63.9% Total 3,824,484 3,956,788 (132,304) 103.5% 4,873,935 -18.8%

FEES & SERVICE CHARGES
Community Development 5,755,380 6,048,610 (293,230) 105.1% 4,565,124 32.5% Parks & Recreation 3,342,994 2,571,022 771,972 76.9% 1,273,362 101.9% Other Service Charges 3,896,007 2,817,239 1,078,768 72.3% 2,454,584 14.8% Total 12,994,381 11,436,871 1,557,510 88.0% 8,293,070 37.9%

OTHER REVENUES
Interfund Charges & Reimbursement 11,001,907 8,257,041 2,744,866 75.1% 8,098,175 2.0% Overhead Indirect Allocations 9,025,888 7,489,216 1,536,672 83.0% 7,179,408 4.3% Interfund Transfers 1,795,258 1,491,732 303,526 83.1% 537,551 177.5% Interfund Loans 24,140 20,117 4,023 83.3% 20,117 0.0%
Miscellenous 132,692 620,775 (488,083) 467.8% 255,416 143.0% Donations 139,709 100,301 39,408 71.8% 76,813 30.6%
Franchise Fees 3,706,830 3,463,878 242,952 93.4% 3,217,495 7.7% Total 25,826,424 21,443,060 4,383,364 83.0% 19,384,974 10.6% Subtotal Non-Tax Revenues 47,192,073 40,177,465 7,014,609 85.1% 34,835,496 15.3% TOTAL REVENUES 169,909,818 154,697,132 15,212,686 91.0% 115,696,032 33.7%

CITY OF SANTA BARBARA
General Fund
Interim Statement of Budgeted and Actual Revenues
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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

GENERAL GOVERNMENT
Mayor & City Council
MAYOR & CITY COUNCIL 975,974 738,011 - 237,963 75.6% 715,672 ARTS AND COMMUNITY PROMOTIONS 2,633,806 2,143,307 490,368 132 100.0% 2,512,215 Total 3,609,780 2,881,318 490,368 238,095 93.4% 3,227,888 City Attorney
CITY ATTORNEY-ADMINISTRATION 1,527,051 896,624 194,814 435,613 71.5% 740,359 CITY ATTORNEY-ADVISORY 1,415,419 1,167,753 - 247,666 82.5% 1,054,018 CITY ATTORNEY-CIVIL LITIGATION 1,233,695 880,283 - 353,412 71.4% 966,943 CITY ATTORNEY-CODE ENFORCEMENT 454,872 380,444 - 74,427 83.6% 355,114 Total 4,631,037 3,325,104 194,814 1,111,119 76.0% 3,116,435 Administration
CITY ADMINISTRATOR 2,791,336 1,805,622 133,147 852,568 69.5% 1,580,008 EMPLOYEE RELATIONS 344,138 192,797 73,832 77,509 77.5% 219,412 CITY TV 641,236 515,222 32,756 93,258 85.5% 413,255
CITY CLERK 1,075,004 885,784 5,268 183,952 82.9% 457,648 ELECTIONS - - - - 0.0% 7,940
Total 4,851,714 3,399,424 245,003 1,207,287 75.1% 2,678,262 Human Resources
HUMAN RESOURCES 2,315,001 1,540,107 177,582 597,312 74.2% 1,281,018 EMPLOYEE DEVELOPMENT 43,447 7,175 - 36,272 16.5% 15,651 Total 2,358,448 1,547,282 177,582 633,585 73.1% 1,296,669 Finance
ADMINISTRATION 471,842 319,885 40,280 111,678 76.3% 242,599 REVENUE & CASH MANAGEMENT 543,260 436,378 4,953 101,930 81.2% 413,797 CASHIERING & COLLECTION 617,850 477,633 - 140,217 77.3% 427,842 LICENSES & PERMITS 562,195 365,126 3,935 193,133 65.6% 357,571 BUDGET MANAGEMENT 619,838 547,331 - 72,508 88.3% 416,782 ACCOUNTING 1,031,524 757,967 51,494 222,063 78.5% 797,454 PAYROLL 470,993 396,595 - 74,398 84.2% 346,394
ACCOUNTS PAYABLE 260,466 221,432 - 39,034 85.0% 203,888 CITY BILLING & CUSTOMER SERVICE 774,094 551,023 748 222,323 71.3% 504,438 PURCHASING 872,971 688,446 128 184,397 78.9% 688,714
CENTRAL WAREHOUSE 234,111 193,465 - 40,645 82.6% 173,738 MAIL SERVICES 147,358 122,004 9,255 16,099 89.1% 121,647 Total 6,606,501 5,077,285 110,792 1,418,425 78.5% 4,694,865 TOTAL GENERAL GOVERNMENT 22,057,481 16,230,412 1,218,558 4,608,510 79.1% 15,014,119

CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

PUBLIC SAFETY
Police
CHIEF'S STAFF 1,005,733 1,425,661 19,407 (439,336) 143.7% 794,404 BUSINESS OFFICE 727,247 472,369 4,120 250,758 65.5% 448,775 RECORDS BUREAU 1,958,461 1,362,095 1,117 595,249 69.6% 1,429,502 STRATEGIC OPERATIONS AND PERSONNEL 1,760,828 1,616,813 72,127 71,888 95.9% 1,640,084 PROPERTY ROOM 263,397 181,766 - 81,631 69.0% 206,294
TRAINING, RECRUITMENT AND WELLNESS 1,700,477 1,287,078 80,003 333,395 80.4% 926,964 RANGE AND EQUIPMENT 1,474,880 1,270,065 25,837 178,978 87.9% 1,101,216 COMMUNITY & MEDIA RELATIONS 342,196 253,925 - 88,271 74.2% 283,798 INFORMATION TECHNOLOGY/CRIME ANALYSIS 1,707,962 1,450,276 83,249 174,437 89.8% 1,328,058 CRIMINAL INVESTIGATIONS & INTERNAL OP'S 5,060,903 4,383,805 - 677,099 86.6% 4,903,291 CRIME LAB 161,786 126,869 - 34,918 78.4% 133,184
FIELD OPERATIONS DIVISION 20,780,941 15,459,247 77,343 5,244,351 74.8% 15,059,854 TRAFFIC 686,625 884,371 - (197,746) 128.8% 485,677
SPECIAL EVENTS 487,913 548,992 544 (61,623) 112.6% 173,532 STREET CRIMES UNIT 1,334,643 1,134,795 - 199,848 85.0% 1,047,109 SPECIAL ENFORCEMENT TEAM 816,022 666,490 - 149,532 81.7% 892,140 PARKING AND STREET SWEEPING 371,967 316,032 - 55,934 85.0% 283,660 PARKING ENFORCEMENT 1,404,878 689,862 138,656 576,360 59.0% 985,969 COMBINED COMMUNICATIONS CENTER 3,004,092 2,630,893 - 373,199 87.6% 2,607,020 ANIMAL CONTROL 914,529 571,118 201,782 141,629 84.5% 684,736 Total 45,965,479 36,732,522 704,184 8,528,773 81.4% 35,415,268 Fire
ADMINISTRATION 1,167,135 931,138 1,375 234,622 79.9% 768,616 EMERGENCY SERVICES AND PUBLIC ED 493,941 400,559 - 93,382 81.1% 368,316 PREVENTION 1,364,541 998,977 525 365,040 73.2% 1,224,698 WILDLAND FIRE MITIGATION PROGRAM 549,627 230,572 37,422 281,632 48.8% 197,720 OPERATIONS 25,153,063 21,394,914 99,909 3,658,240 85.5% 21,088,373 TRAINING AND RECRUITMENT 821,690 538,137 - 283,553 65.5% 603,693 ARFF 2,847,019 2,474,770 - 372,248 86.9% 2,243,180
Total 32,397,015 26,969,067 139,231 5,288,717 83.7% 26,494,595 TOTAL PUBLIC SAFETY 78,362,495 63,701,589 843,415 13,817,491 82.4% 61,909,864

PUBLIC WORKS
Public Works
ADMINISTRATION 1,425,256 1,034,923 18,998 371,335 73.9% 775,047 ENGINEERING SVCS 6,342,121 4,569,707 105,784 1,666,630 73.7% 4,497,537 PUBLIC RT OF WAY MGMT 1,810,855 1,263,132 36,886 510,836 71.8% 1,161,930 ENVIRONMENTAL PROGRAMS 996,355 499,351 159,511 337,493 66.1% 358,235 Total 10,574,587 7,367,114 321,178 2,886,295 72.7% 6,792,749 TOTAL PUBLIC WORKS 10,574,587 7,367,114 321,178 2,886,295 72.7% 6,792,749

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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

COMMUNITY SERVICES
Parks & Recreation
REC PROGRAM MGMT 834,120 557,787 28,080 248,252 70.2% 481,767 FACILITIES & SPECIAL EVENTS 1,315,871 1,023,514 93,608 198,748 84.9% 738,967 YOUTH ACTIVITIES 1,351,818 926,232 21,915 403,672 70.1% 629,754 ACTIVE ADULTS 868,202 640,996 9,670 217,536 74.9% 557,499 AQUATICS 1,794,956 1,436,512 76,409 282,035 84.3% 1,317,263 SPORTS 644,825 469,773 4,606 170,446 73.6% 292,420
TENNIS 366,021 297,823 3,885 64,313 82.4% 252,248
NEIGHBORHOOD & OUTREACH SERV 1,000,818 778,150 12,714 209,954 79.0% 751,595 ADMINISTRATION 1,119,272 881,510 14,342 223,420 80.0% 746,305 PROJECT MANAGEMENT TEAM 601,538 401,155 34,862 165,520 72.5% 417,360 PARK OPERATIONS MANAGEMENT 875,096 559,806 5,220 310,070 64.6% 700,198 GROUNDS & FACILITIES MAINTENANCE 5,534,264 4,268,375 91,494 1,174,396 78.8% 4,107,013 FORESTRY 1,430,817 1,096,876 41,862 292,079 79.6% 1,061,951 BEACH MAINTENANCE 141,703 111,360 3,777 26,566 81.3% 76,217 MEDIANS PARKWAYS & CONTRACTS 540,570 390,727 44,608 105,235 80.5% 345,109 Total 18,419,891 13,840,596 487,051 4,092,244 77.8% 12,475,665 Library
ADMINISTRATION 711,247 535,271 40,801 135,175 81.0% 441,528 CENTRAL LIBRARY 5,333,721 3,894,641 60,146 1,378,933 74.1% 3,303,484 EASTSIDE LIBRARY 354,477 264,092 776 89,609 74.7% 208,108 LIBRARY ON THE GO 117,343 87,508 - 29,835 74.6% -
Total 6,516,788 4,781,513 101,723 1,633,552 74.9% 3,953,120 TOTAL COMMUNITY SERVICES 24,936,679 18,622,109 588,774 5,725,796 77.0% 16,428,786

COMMUNITY DEVELOPMENT
Community Development
ADMINISTRATION 1,552,741 1,161,941 36,307 354,493 77.2% 995,213 RENTAL HOUSING MEDIATION 284,959 236,966 - 47,993 83.2% 217,223 HUMAN SERVICES 1,035,172 617,062 328,873 89,237 91.4% 634,434 LONG RANGE PLAN & SPEC STUDY 1,025,531 796,882 264 228,385 77.7% 842,557 DEVEL & ENVIRONMENTAL REVIEW 1,618,900 1,255,707 13,334 349,859 78.4% 1,148,352 ZONING INFO & ENFORCEMENT 1,510,992 1,118,697 23,416 368,879 75.6% 1,174,492 DESIGN REV & HIST PRESERVATION 1,566,419 1,173,659 2,597 390,162 75.1% 1,088,561 BLDG INSP & CODE ENFORCEMENT 2,129,213 1,394,016 43,800 691,397 67.5% 1,309,222 RECORDS ARCHIVES & CLER SVCS 772,449 533,636 39,473 199,340 74.2% 517,411 BLDG COUNTER & PLAN REV SVCS 2,683,649 1,648,388 272,249 763,011 71.6% 1,696,594 Total 14,180,024 9,936,954 760,313 3,482,757 75.4% 9,624,058 TOTAL COMMUNITY DEVELOPMENT 14,180,024 9,936,954 760,313 3,482,757 75.4% 9,624,058

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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

SUSTAINABILITY AND RESILIENCE
Sustainability and Resilience
ADMINISTRATION 250,068 63,236 68,597 118,235 52.7% 25,919 Total 250,068 63,236 68,597 118,235 52.7% 25,919
TOTAL SUSTAINABILITY AND RESILIENCE 250,068 63,236 68,597 118,235 52.7% 25,919

NON-DEPARTMENTAL
Non-Departmental
ANTICIPATED SALARY SAVINGS (2,100,000) - - (2,100,000) 0.0% - TRANSFERS OUT 2,713,725 2,591,776 - 121,949 95.5% 752,811 CAPITAL OUTLAY TRANSFER 25,788,418 21,377,848 - 4,410,570 82.9% 19,408,128 APPROP. RESERVE 130,000 - - 130,000 0.0% -
Total 26,532,143 23,969,625 - 2,562,519 90.3% 20,160,938 TOTAL NON-DEPARTMENTAL 26,532,143 23,969,625 - 2,562,519 90.3% 20,160,938 TOTAL EXPENDITURES 176,893,476 139,891,039 3,800,836 33,201,602 81.2% 129,956,432 ** 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.

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

TRAFFIC SAFETY FUND
Revenue 233,000 182,151 - 50,849 78.2% 134,330
Expenditures 233,000 182,151 - 50,849 78.2% 134,330
Revenue Less Expenditures - - - - -

CREEK RESTORATION/WATER QUALITY IMPRVMT
Revenue 4,010,347 4,399,807 - (389,460) 109.7% 3,869,262 Expenditures 4,335,949 2,912,467 342,381 1,081,101 75.1% 3,579,847 Revenue Less Expenditures (325,602) 1,487,339 (342,381) (1,470,561) 289,415

COMMUNITY DEVELOPMENT BLOCK GRANT
Revenue 2,014,181 900,421 - 1,113,760 44.7% 1,698,305
Expenditures 2,514,258 908,891 851,126 754,241 70.0% 2,292,655 Revenue Less Expenditures (500,077) (8,470) (851,126) 359,519 (594,350)

COUNTY LIBRARY
Revenue 1,073,708 683,108 - 390,600 63.6% 868,371
Expenditures 1,068,933 769,432 17,092 282,410 73.6% 598,647 Revenue Less Expenditures 4,775 (86,324) (17,092) 108,190 269,724

STREETS FUND
Revenue 12,243,914 10,269,161 - 1,974,753 83.9% 10,165,883 Expenditures 12,397,100 9,620,996 271,023 2,505,081 79.8% 9,070,146 Revenue Less Expenditures (153,186) 648,165 (271,023) (530,329) 1,095,737

MEASURE A FUND
Revenue 4,055,709 3,921,862 - 133,847 96.7% 3,219,956
Expenditures 4,180,416 3,104,115 176,005 900,295 78.5% 2,672,731 Revenue Less Expenditures (124,707) 817,747 (176,005) (766,448) 547,225

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Special Revenue Funds
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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

REVENUES
Service charges 31,266,595 26,756,470 - 4,510,125 85.6% 24,064,126 Other Fees & Charges 30,000 903,625 - (873,625) 3012.1% 154,269 Investment Income 23,645 32,030 - (8,385) 135.5% 28,659 Grants 23,570 23,211 - 359 98.5% 23,145
Miscellaneous 286,223 (3,636) - 289,859 -1.3% 254,862
TOTAL REVENUES 31,630,033 27,711,700 - 3,918,333 87.6% 24,525,061

EXPENSES
Salaries & Benefits 1,524,648 1,189,657 - 334,991 78.0% 1,025,226 Materials, Supplies & Services 27,753,925 22,252,890 517,939 4,983,096 82.0% 21,148,276 Special Projects 1,170,049 106,269 58,478 1,005,303 14.1% 77,473 Transfers-Out 50,000 41,667 - 8,333 83.3% 41,667
Capital Outlay Transfers 1,946 1,622 - 324 83.3% 173,375 Equipment 185,000 20,800 129,635 34,565 81.3% 60,114
Other 40,000 - - 40,000 0.0% -
Appropriated Reserve 21,300 - - 21,300 0.0% -
TOTAL EXPENSES 30,746,869 23,612,905 706,051 6,427,912 79.1% 22,526,131 Revenue Less Expense 883,164 4,098,795 (706,051) (2,509,579) 1,998,931

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

SOLID WASTE FUND

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

REVENUES
Water Sales- Metered 57,330,939 48,110,516 - 9,220,423 83.9% 47,396,335 Service Charges 208,765 244,679 - (35,914) 117.2% 215,684 Cater JPA Treatment Charges 2,359,556 2,011,729 - 347,827 85.3% 1,504,225 Investment Income 684,620 616,651 - 67,969 90.1% 802,260 Grants 10,000,000 710,798 - 9,289,202 7.1% -
Reimbursements 3,310,043 3,185,526 - 124,517 96.2% 918,133 Miscellaneous 227,206 771,382 - (544,176) 339.5% 609,622 Operating Transfers-In 135,943 135,943 - - 100.0% 279,943 TOTAL REVENUES 74,257,072 55,787,225 - 18,469,847 75.1% 51,726,203

EXPENSES
Salaries & Benefits 12,755,762 9,680,580 - 3,075,182 75.9% 9,094,845 Materials, Supplies & Services 17,781,795 11,865,224 3,495,289 2,421,282 86.4% 12,055,542 Special Projects 695,792 330,498 176,916 188,378 72.9% 370,354 Water Purchases 9,228,839 7,828,788 - 1,400,051 84.8% 6,609,828 Debt Service 9,190,636 5,639,668 - 3,550,968 61.4% 5,636,284 Capital Outlay Transfers 19,122,471 16,819,692 - 2,302,779 88.0% 11,007,684 Equipment 239,755 90,167 12,540 137,048 42.8% 89,020
Capitalized Fixed Assets 259,250 151,130 38,819 69,301 73.3% 171,078 Other 41,300 32,080 - 9,220 77.7% 30,764
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 69,465,601 52,437,827 3,723,565 13,304,209 80.8% 45,065,399 Revenue Less Expense 4,791,471 3,349,397 (3,723,565) 5,165,638 6,660,804 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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

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

REVENUES
Service Charges 24,869,491 20,590,988 - 4,278,503 82.8% 19,428,656 Fees 548,856 422,783 - 126,073 77.0% 355,059
Investment Income 151,245 123,313 - 27,932 81.5% 176,263 Rents & Concessions 61,072 46,870 - 14,202 76.7% 50,893 Miscellaneous 5,000 30,849 - (25,849) 617.0% 24,361
Operating Transfers-In - - - - 0.0% 189,586
TOTAL REVENUES 25,635,664 21,214,803 - 4,420,861 82.8% 20,224,819

EXPENSES
Salaries & Benefits 7,776,281 6,076,199 - 1,700,082 78.1% 5,965,360 Materials, Supplies & Services 9,038,832 6,919,097 1,527,458 592,276 93.4% 5,722,540 Special Projects 680,865 389,915 208,915 82,036 88.0% 495,066 Debt Service 3,558,338 2,553,312 - 1,005,026 71.8% 2,573,437 Capital Outlay Transfers 4,939,840 4,116,533 - 823,307 83.3% 2,179,703 Equipment 106,000 81,856 6,712 17,432 83.6% 44,160
Capitalized Fixed Assets 111,234 71,849 124 39,260 64.7% 199,473 Other 4,500 1,985 2,500 15 99.7% 1,485
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 26,365,890 20,210,746 1,745,710 4,409,434 83.3% 17,181,224 Revenue Less Expense (730,226) 1,004,057 (1,745,710) 11,427 3,043,595 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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

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

REVENUES
Improvement Tax 750,000 887,915 - (137,915) 118.4% 575,049 Parking Fees 5,541,456 3,799,183 - 1,742,273 68.6% 2,527,460 Other Fees & Charges 12,925 24,108 - (11,183) 186.5% 13,078 Investment Income 53,545 25,002 - 28,543 46.7% 61,479
Rents & Concessions 136,820 131,987 - 4,833 96.5% 130,467 Miscellaneous 295,466 235,535 - 59,932 79.7% 174,915
Operating Transfers-In 731,694 609,745 - 121,949 83.3% 618,907 TOTAL REVENUES 7,521,906 5,713,474 - 1,808,432 76.0% 4,101,355

EXPENSES
Salaries & Benefits 4,139,845 3,266,475 - 873,370 78.9% 3,141,029 Materials, Supplies & Services 3,449,178 2,637,684 289,162 522,332 84.9% 1,950,857 Special Projects 497,659 323,074 155,816 18,769 96.2% 520,802 Capital Outlay Transfers 226,425 188,688 - 37,738 83.3% 1,185,127 Equipment 54,120 9,290 - 44,830 17.2% 22,836
Appropriated Reserve 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 8,377,227 6,425,211 444,978 1,507,038 82.0% 6,820,651 Revenue Less Expense (855,321) (711,737) (444,978) 301,394 (2,719,296) 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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

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

REVENUES
Leases-Commercial/Industrial 5,531,982 4,269,937 - 1,262,045 77.2% 4,216,081 Leases-Terminal 5,551,935 6,598,446 - (1,046,511) 118.8% 2,816,103 Leases-Non-Commercial Aviation 4,562,386 4,114,885 - 447,501 90.2% 3,566,921 Leases-Commercial Aviation 5,121,457 4,273,702 - 847,755 83.4% 3,152,613 Investment Income 109,045 144,361 - (35,316) 132.4% 123,693 Grants 6,344,534 5,907,498 - 437,036 93.1% 5,003,428
Service Charges - 1,102 - (1,102) 100.0% -
Miscellaneous 119,196 116,431 - 2,765 97.7% 124,952
Operating Transfers-In 125,117 125,117 - - 100.0% 1,849,403 TOTAL REVENUES 27,465,652 25,551,478 - 1,914,173 93.0% 20,853,195

EXPENSES
Salaries & Benefits 9,036,921 7,042,016 - 1,994,906 77.9% 6,216,226 Materials, Supplies & Services 12,162,953 8,009,656 2,055,527 2,097,769 82.8% 6,886,084 Special Projects 1,741,696 581,602 330,312 829,782 52.4% 27,549 Transfer-Out 250,000 - - 250,000 0.0% 82,843
Debt Service 1,555,750 1,296,458 - 259,292 83.3% 1,294,167 Capital Outlay Transfers 3,998,242 3,476,058 - 522,184 86.9% 3,346,323 Equipment 230,390 106,197 31,418 92,776 59.7% 88,122
Appropriated Reserve 104,959 - - 104,959 0.0% -
TOTAL EXPENSES 29,080,912 20,511,986 2,417,257 6,151,669 78.8% 17,941,313 Revenue Less Expense (1,615,260) 5,039,492 (2,417,257) (4,237,495) 2,911,882 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

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

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

REVENUES
Fees & Card Sales 3,197,253 3,094,941 - 102,312 96.8% 3,092,203 Investment Income 10,745 15,764 - (5,019) 146.7% 12,978 Rents & Concessions 205,211 152,759 - 52,452 74.4% 129,170 Miscellaneous - (942) - 942 100.0% 7,670
TOTAL REVENUES 3,413,209 3,262,523 - 150,686 95.6% 3,242,021

EXPENSES
Salaries & Benefits 82,612 63,669 - 18,943 77.1% 46,041 Materials, Supplies & Services 2,801,007 2,072,687 645,876 82,443 97.1% 1,976,206 Debt Service 41,430 - - 41,430 0.0% -
Capital Outlay Transfers 210,636 175,530 - 35,106 83.3% 168,272 TOTAL EXPENSES 3,135,685 2,311,887 645,876 177,922 94.3% 2,190,519 Revenue Less Expense 277,524 950,636 (645,876) (27,236) 1,051,502 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

GOLF COURSE FUND

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

REVENUES
Service Charges 3,087,902 2,573,257 - 514,645 83.3% 2,602,423 Work Orders - Bldg Maint. 3,548,781 2,698,887 - 849,894 76.1% 2,631,712 Miscellaneous 10,500 1,602 - 8,898 15.3% 1,409
Operating Transfers-In - - - - 0.0% 364,281
TOTAL REVENUES 6,647,183 5,273,746 - 1,373,437 79.3% 5,599,825

EXPENSES
Salaries & Benefits 4,438,079 3,143,652 - 1,294,427 70.8% 3,241,484 Materials, Supplies & Services 1,899,329 1,492,909 159,847 246,573 87.0% 1,331,189 Special Projects 363,120 223,415 92,989 46,716 87.1% 169,157 Capital Outlay Transfers 477,198 397,665 - 79,533 83.3% 941,315 Equipment 10,000 4,621 - 5,379 46.2% 5,943
Appropriated Reserve 85,065 - - 85,065 0.0% -
TOTAL EXPENSES 7,272,791 5,262,262 252,836 1,757,692 75.8% 5,689,088 Revenue Less Expense (625,608) 11,483 (252,836) (384,255) (89,264)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

FACILITIES MANAGEMENT FUND

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

REVENUES
Vehicle Rental Charges 3,063,053 2,515,713 - 547,340 82.1% 2,464,455 Investment Income 168,561 109,731 - 58,830 65.1% 150,082 Rents & Concessions 123,982 99,668 - 24,314 80.4% 127,026 Miscellaneous 112,000 82,232 - 29,768 73.4% 123,716
Operating Transfers-In 29,000 29,000 - - 100.0% -
TOTAL REVENUES 3,496,596 2,836,343 - 660,253 81.1% 2,865,279

EXPENSES
Salaries & Benefits 247,988 149,523 - 98,464 60.3% 184,737 Materials, Supplies & Services 19,553 17,830 - 1,723 91.2% 17,690 Special Projects 75,000 - - 75,000 0.0% -
Transfer-Out - - - - 0.0% 92,780
Capital Outlay Transfers 1,054,838 883,336 - 171,502 83.7% 77,817 Capitalized Fixed Assets 5,340,983 1,603,566 1,137,171 2,600,245 51.3% 1,590,524 TOTAL EXPENSES 6,738,361 2,654,255 1,137,171 2,946,934 56.3% 1,963,548 Revenue Less Expense (3,241,765) 182,088 (1,137,171) (2,286,682) 901,731

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

FLEET REPLACEMENT FUND

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

REVENUES
Vehicle Maintenance Charges 2,921,453 2,427,412 - 494,041 83.1% 2,344,429 Reimbursements 5,000 4,167 - 833 83.3% 29,488
Miscellaneous 60,000 59,854 - 146 99.8% 80,325
TOTAL REVENUES 2,986,453 2,491,432 - 495,021 83.4% 2,454,242

EXPENSES
Salaries & Benefits 1,546,176 1,186,121 - 360,056 76.7% 1,190,294 Materials, Supplies & Services 1,375,257 1,153,692 161,539 60,025 95.6% 969,614 Special Projects 147,205 65,104 49,136 32,965 77.6% 22,677 Debt Service - - - - 0.0% 12,149
Capital Outlay Transfers 31,934 31,445 - 489 98.5% -
Equipment 7,147 17,214 - (10,067) 240.9% 4,720
Capitalized Fixed Assets 46,488 16,213 30,275 - 100.0% - Appropriated Reserve 15,000 - - 15,000 0.0% -
TOTAL EXPENSES 3,169,206 2,469,789 240,950 458,468 85.5% 2,199,453 Revenue Less Expense (182,753) 21,643 (240,950) 36,553 254,789

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

FLEET MAINTENANCE FUND

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

REVENUES
Insurance Premiums 5,056,793 4,213,995 - 842,798 83.3% 2,873,349 Workers' Compensation Premiums 4,219,100 3,470,083 - 749,017 82.2% 3,443,926 OSH Charges 290,230 241,859 - 48,371 83.3% 229,913
Unemployment Insurance Premium 277,529 231,274 - 46,255 83.3% 189,633 Investment Income 53,545 30,266 - 23,279 56.5% 63,610
Miscellaneous - 4,502 - (4,502) 100.0% 200,841
Operating Transfers-In 507,325 494,687 - 12,638 97.5% 63,188 TOTAL REVENUES 10,404,522 8,686,667 - 1,717,855 83.5% 7,064,459

EXPENSES
Salaries & Benefits 744,822 636,156 - 108,666 85.4% 581,750 Materials, Supplies & Services 10,592,777 8,833,854 99,410 1,659,514 84.3% 6,940,664 Capital Outlay Transfers 818 682 - 136 83.3% -
TOTAL EXPENSES 11,338,418 9,470,691 99,410 1,768,316 84.4% 7,522,413 Revenue Less Expense (933,896) (784,025) (99,410) (50,461) (457,955) 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

SELF INSURANCE TRUST FUND

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

REVENUES
Service charges 4,485,985 3,738,319 - 747,666 83.3% 3,111,959 Operating Transfers-In 35,000 35,000 - - 100.0% 108,538 TOTAL REVENUES 4,520,985 3,773,319 - 747,666 83.5% 3,220,496

EXPENSES
Salaries & Benefits 2,679,487 2,066,305 - 613,181 77.1% 2,021,853 Materials, Supplies & Services 1,694,740 1,507,549 44,908 142,283 91.6% 983,934 Special Projects 21,091 9,382 14,116 (2,407) 111.4% 194 Capital Outlay Transfers 232,127 201,773 - 30,355 86.9% 223,504 Equipment 12,130 6,878 1,887 3,366 72.3% 3,406
TOTAL EXPENSES 4,639,575 3,791,886 60,911 786,778 83.0% 3,232,891 Revenue Less Expense (118,590) (18,567) (60,911) (39,112) (12,395) 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

INFORMATION TECHNOLOGY FUND

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

REVENUES
Leases - Commercial 1,850,000 1,859,176 - (9,176) 100.5% 1,566,059 Leases - Food Service 2,795,000 2,892,097 - (97,097) 103.5% 2,226,211 Slip Rental Fees 4,829,458 4,085,236 - 744,222 84.6% 3,945,703 Visitors Fees 649,459 653,333 - (3,874) 100.6% 554,187
Slip Transfer Fees 1,200,000 1,268,350 - (68,350) 105.7% 1,420,325 Parking Revenue 2,814,685 2,705,882 - 108,803 96.1% 2,065,475 Wharf Parking 180,000 230,452 - (50,452) 128.0% 180,971 Grants - 12,752 - (12,752) 100.0% 10,707
Other Fees & Charges 235,562 207,744 - 27,818 88.2% 190,067 Investment Income 89,945 90,620 - (675) 100.8% 94,741
Rents & Concessions 385,000 359,406 - 25,594 93.4% 334,476 Miscellaneous 629,892 397,097 - 232,795 63.0% 174,317
TOTAL REVENUES 15,659,001 14,762,146 - 896,855 94.3% 12,763,239

EXPENSES
Salaries & Benefits 7,710,675 6,072,704 - 1,637,971 78.8% 5,551,703 Materials, Supplies & Services 5,479,592 3,848,449 682,778 948,364 82.7% 3,627,026 Special Projects 233,348 126,740 195 106,414 54.4% 97,337 Debt Service 2,038,500 2,038,500 - (0) 100.0% 2,042,191 Capital Outlay Transfers 436,852 418,616 - 18,236 95.8% 927,702 Equipment 131,895 30,490 19,262 82,143 37.7% 58,379
Capitalized Fixed Assets 78,544 - 36,643 41,901 46.7% - Other 2,375 2,513 - (138) 105.8% 2,513
Appropriated Reserve 100,000 - - 100,000 0.0% -
TOTAL EXPENSES 16,211,779 12,538,012 738,878 2,934,890 81.9% 12,306,851 Revenue Less Expense (552,778) 2,224,134 (738,878) (2,038,035) 456,389

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Ten Months Ended April 30, 2022 (83.3% 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.

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

REVENUES
Service Charges 10,972,584 4,704,176 - 6,268,408 42.9% - Investment Income - 73 - (73) 100.0% 184
Operating Transfers-In 1,550,532 1,550,532 - - 100.0% 349,769 TOTAL REVENUES 12,523,116 6,254,780 - 6,268,335 49.9% 349,954

EXPENSES
Salaries & Benefits 152,590 118,510 - 34,080 77.7% -
Materials, Supplies & Services 9,276,308 5,757,099 865,802 2,653,407 71.4% 26,464 Special Projects 744,127 482,310 13,127 248,690 66.6% 80,000 Other 49,000 - - 49,000 0.0% -
TOTAL EXPENSES 10,222,025 6,357,919 878,929 2,985,177 70.8% 106,464 Revenue Less Expense 2,301,090 (103,139) (878,929) 3,283,158 243,490

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

SANTA BARBARA CLEAN ENERGY FUND

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

REVENUES
Service charges 2,369,071 1,974,226 - 394,845 83.3% 1,543,717 Grants 184,000 169,601 - 14,399 92.2% 175,561
Miscellaneous - 1 - (1) 100.0% 48,339
Operating Transfers-In - - - - 0.0% 298,088
TOTAL REVENUES 2,553,071 2,143,827 - 409,244 84.0% 2,065,705

EXPENSES
Salaries & Benefits 501,398 412,410 - 88,988 82.3% 292,940 Materials, Supplies & Services 1,839,379 1,066,751 134,704 637,924 65.3% 923,756 Special Projects 160,774 9,402 51,744 99,628 38.0% 16,382 Transfer-Out - - - - 0.0% 250,000
Debt Service 24,140 20,117 - 4,023 83.3% 20,117
Capital Outlay Transfers 100,870 84,058 - 16,812 83.3% 213,124 Equipment 4,000 - - 4,000 0.0% -
Capitalized Fixed Assets 169,000 91,000 78,600 (600) 100.4% - TOTAL EXPENSES 2,799,561 1,683,738 265,047 850,775 69.6% 1,716,320 Revenue Less Expense (246,490) 460,089 (265,047) (441,531) 349,385 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 Ten Months Ended April 30, 2022 (83.3% of Fiscal Year)

ENERGY AND CLIMATE MANAGEMENT FUND

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: April 2022 Investment Report
RECOMMENDATION:

That Council accept the April 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 April 30, 2022.

ATTACHMENT: April 2022 Investment Report
PREPARED BY: Salvatore Parrilla, Finance Analyst
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 11
File Code No. 260.02

INVESTMENT ACTIVITY INVESTMENT INCOME

PURCHASES OR DEPOSITS POOLED INVESTMENTS
4/21 FHLB 2,000,000 $ Interest Earned on Investments 224,621 $ 4/25 FHLB 2,000,000 Amortization 15,859
Total $ 4,000,000 Total $ 240,480

SALES, MATURITIES, CALLS OR WITHDRAWALS
Total $ -
ACTIVITY TOTAL $ 4,000,000 INCOME TOTAL $ 240,480

CITY OF SANTA BARBARA
Activity and Interest Report
April 30, 2022

ATTACHMENT
1 ENDING BALANCE AS OF March 31, 2022
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account $ 18,210,183 0.450% 6.20% 1 (1) State of California LAIF 75,000,000 0.365% 25.53% 1 (2)Treasury Securities 55,616,594 1.144% 18.93% 1,008 Federal Agency Issues - Coupon 110,976,528 1.037% 37.78% 1,132 Corporate/Medium Term Notes 20,970,144 2.345% 7.14% 573 Supranationals Obligations 12,955,373 0.700% 4.41% 994
293,728,822 0.928% 100.00% 704
Totals and Averages $ 293,728,822 0.928% 100.00% 704
Total Cash and Investments $ 293,728,822
NET CASH AND INVESTMENT ACTIVITY FOR April 2022 $ 14,682,467 ENDING BALANCE AS OF April 30, 2022
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account $ 28,876,790 0.450% 9.36% 1 (1) State of California LAIF 75,000,000 0.523% 24.32% 1 (2)Treasury Securities 55,625,999 1.144% 18.04% 978 Federal Agency Issues - Coupon 114,977,338 1.101% 37.28% 1,108 Corporate/Medium Term Notes 20,973,218 2.345% 6.80% 543 Supranationals Obligations 12,957,943 0.700% 4.20% 964
308,411,289 0.975% 100.00% 667
Totals and Averages $ 308,411,289 0.975% 100.00% 667
Total Cash and Investments $ 308,411,289
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 April 30, 2022 is 315 days.

CITY OF SANTA BARBARA
Summary of Cash and Investments
April 30, 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 - - - - 0.523 0.523 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 1,996,548.90 1,982,120.00 (14,428.90)U S TREASURY NOTE 06/27/19 08/31/22 Aaa AA+ 1.875 1.743 2,000,000.00 2,000,853.79 2,004,620.00 3,766.21U S TREASURY NOTE 01/22/20 02/28/23 Aaa AA+ 1.500 1.527 2,000,000.00 1,999,561.25 1,991,960.00 (7,601.25)U S TREASURY NOTE 01/22/20 06/30/23 Aaa AA+ 1.375 1.534 2,000,000.00 1,996,401.89 1,978,820.00 (17,581.89)U S TREASURY NOTE 01/12/21 09/15/23 Aaa AA+ 0.125 0.185 3,000,000.00 2,997,528.74 2,906,610.00 (90,918.74)U S TREASURY NOTE 01/21/21 10/31/22 Aaa AA+ 0.125 0.118 3,000,000.00 3,000,099.28 2,979,840.00 (20,259.28)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,987,455.26 2,751,930.00 (235,525.26)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,981,548.08 1,843,900.00 (137,648.08)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,976,586.68 1,822,180.00 (154,406.68)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,979,686.16 1,839,680.00 (140,006.16)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,982,942.71 1,856,260.00 (126,682.71)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,989,782.07 1,830,620.00 (159,162.07)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,977,171.58 1,814,060.00 (163,111.58)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,978,558.01 1,821,400.00 (157,158.01)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,987,939.10 1,828,280.00 (159,659.10)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,961,501.71 2,867,100.00 (94,401.71)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,918,869.50 2,751,810.00 (167,059.50)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.207 3,000,000.00 2,993,232.15 2,863,590.00 (129,642.15)U S TREASURY NOTE 01/31/22 01/31/24 Aaa AA+ 0.875 1.145 3,000,000.00 2,985,998.36 2,909,070.00 (76,928.36)U S TREASURY NOTE 02/28/22 02/29/24 Aaa AA+ 1.500 1.548 2,000,000.00 1,998,284.03 1,958,360.00 (39,924.03)U S TREASURY NOTE 02/28/22 11/30/26 Aaa AA+ 1.625 1.863 2,000,000.00 1,979,207.59 1,886,400.00 (92,807.59)U S TREASURY NOTE 03/15/22 03/15/25 Aaa AA+ 1.750 1.827 3,000,000.00 2,993,574.18 2,906,250.00 (87,324.18)U S TREASURY NOTE 03/17/22 05/31/24 Aaa AA+ 2.000 2.006 2,000,000.00 1,999,733.74 1,970,160.00 (29,573.74)U S TREASURY NOTE 03/17/22 12/31/26 Aaa AA+ 1.750 2.170 2,000,000.00 1,962,934.27 1,895,700.00 (67,234.27) Subtotal, Treasury Securities 56,000,000.00 55,625,999.03 53,260,720.00 (2,365,279.03)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 05/09/19 04/03/23 - - 2.360 2.371 2,000,000.00 1,999,810.83 2,004,900.00 5,089.17FED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,996,892.93 1,957,760.00 (39,132.93)FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.480 3,000,000.00 3,000,000.00 2,759,670.00 (240,330.00) 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 1,999,462.37 2,007,180.00 7,717.63 FEDERAL FARM CREDIT BANK 06/24/19 06/14/22 Aaa AA+ 1.875 1.839 2,000,000.00 2,000,082.79 2,002,480.00 2,397.21FEDERAL FARM CREDIT BANK 06/27/19 12/12/22 Aaa AA+ 1.875 1.830 2,000,000.00 2,000,528.98 2,001,260.00 731.02FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,845,380.00 (154,620.00) 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 1,874,240.00 (125,760.00) 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 1,828,620.00 (171,380.00) Callable 09/08/22, PFEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,980,560.26 2,860,230.00 (120,330.26) Callable, PFEDERAL FARM CREDIT BANK 12/23/21 06/23/25 Aaa AA+ 1.170 1.170 3,000,000.00 3,000,000.00 2,831,700.00 (168,300.00) 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 2,838,660.00 (161,340.00) 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 2,828,430.00 (171,570.00) Callable 01/26/23, PFEDERAL FARM CREDIT BANK 02/16/22 02/16/27 Aaa AA+ 2.180 2.180 3,000,000.00 3,000,000.00 2,874,750.00 (125,250.00) Callable 02/16/24, PFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.580 0.580 3,000,000.00 3,000,000.00 2,766,840.00 (233,160.00) Callable 04/28/22, QFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,781,180.00 (218,820.00) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,786,490.00 (213,510.00)FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,752,560.00 (247,440.00) Callable 02/25/23, A

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
April 30, 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
April 30, 2022
FEDERAL HOME LOAN BANK 03/16/21 03/16/26 Aaa AA+ 0.500 0.798 2,000,000.00 2,000,000.00 1,862,240.00 (137,760.00) S/U 0.50-1.00%, Callable 03/16/22 - Q FEDERAL HOME LOAN BANK 05/20/21 05/20/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,861,440.00 (138,560.00) 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 2,791,620.00 (208,380.00) Callable 05/26/22, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,889,580.00 (110,420.00) Callable 05/26/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,865,940.00 (134,060.00) 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 1,859,260.00 (140,740.00) Callable 06/10/22, QFEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,872,800.00 (127,200.00) Callable 03/28/22, QFEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,889,740.00 (110,260.00) 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 1,871,880.00 (128,120.00) 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 1,840,860.00 (159,140.00) 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 1,874,240.00 (125,760.00) 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 2,885,940.00 (114,060.00) 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 2,855,400.00 (144,600.00) 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 2,913,540.00 (86,460.00) 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 2,871,600.00 (128,400.00) 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 2,847,240.00 (152,760.00) Callable 01/26/24, S/U 1.125%-2.250%FEDERAL HOME LOAN BANK 02/28/22 05/28/24 Aaa AA+ 1.450 1.450 3,000,000.00 3,000,000.00 2,929,620.00 (70,380.00) Callable 02/28/23, 1xFEDERAL HOME LOAN BANK 03/29/22 03/29/27 Aaa AA+ 2.375 2.375 3,000,000.00 3,000,000.00 2,902,980.00 (97,020.00) Callable 03/29/23, QFEDERAL HOME LOAN BANK 04/21/22 04/21/26 Aaa AA+ 3.000 3.000 2,000,000.00 2,000,000.00 1,984,340.00 (15,660.00) Callable 04/21/23, AFEDERAL HOME LOAN BANK 04/25/22 04/25/25 Aaa AA+ 2.750 2.750 2,000,000.00 2,000,000.00 1,990,160.00 (9,840.00) Callable 04/25/23, 1xFEDERAL HOME LOAN MTG CORP 05/25/17 05/25/22 Aaa AA+ 2.050 2.050 2,000,000.00 2,000,000.00 2,001,600.00 1,600.00 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 2,756,190.00 (243,810.00) 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 2,893,170.00 (106,830.00) Callable 05/24/22, 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 2,820,870.00 (179,130.00) 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 2,920,350.00 (79,650.00) Callable 05/17/2022, QFEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,708,160.00 (291,840.00) 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 2,863,380.00 (136,620.00) Callable on 11/17/2022, Q Subtotal, Federal Agencies 115,000,000.00 114,977,338.16 109,226,470.00 (5,750,868.16) 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 2,752,110.00 (247,890.00)INTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,663.64 2,818,710.00 (180,953.64)INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,995,794.00 1,848,460.00 (147,334.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,984,423.47 1,841,020.00 (143,403.47)INTERNATIONAL FINANCE CORP 03/14/22 03/20/23 Aaa AAA 0.500 1.334 3,000,000.00 2,978,062.21 2,954,400.00 (23,662.21) Subtotal, Supranationals 13,000,000.00 12,957,943.32 12,214,700.00 (743,243.32)CORPORATE/MEDIUM TERM NOTESAPPLE INC 01/24/19 05/11/22 Aaa AA+ 2.300 2.847 2,000,000.00 1,999,711.71 2,000,460.00 748.29APPLE INC 04/23/19 05/03/23 Aaa AA+ 2.400 2.718 2,000,000.00 1,993,978.32 2,001,800.00 7,821.68APPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,995,381.67 1,954,160.00 (41,221.67)APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,431.74 2,739,900.00 (259,531.74)BERKSHIRE HATHAWAY INC 04/05/18 03/15/23 Aa2 AA 2.750 3.016 2,000,000.00 1,995,716.90 2,008,300.00 12,583.10BERKSHIRE HATHAWAY FIN 12/12/18 05/15/22 Aa2 AA 3.000 3.204 2,000,000.00 1,999,850.58 2,000,800.00 949.42MICROSOFT CORP 05/23/19 08/08/23 Aaa AAA 2.000 2.535 2,000,000.00 1,987,179.87 1,993,500.00 6,320.13TOYOTA MOTOR CREDIT 07/27/18 07/20/23 A1 A 3.419 3.392 2,000,000.00 2,000,597.41 2,013,300.00 12,702.59TOYOTA MOTOR CREDIT 06/14/19 09/08/22 A1 A 2.150 2.182 2,000,000.00 1,999,781.79 2,002,880.00 3,098.21TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,001,587.78 1,913,600.00 (87,987.78) Subtotal, Corporate Securities 21,000,000.00 20,973,217.77 20,628,700.00 (344,517.77) 4 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
April 30, 2022
CHECKING ACCOUNTMUFG UNION BANK NA CHKNG ACCNT - - - - 0.450 0.450 28,876,790.36 28,876,790.36 28,876,790.36 0.00 Subtotal, Checking Account 28,876,790.36 28,876,790.36 28,876,790.36 0.00TOTALS 308,876,790.36 308,411,288.64 299,207,380.36 (9,203,908.28) Market values have been obtained from the City's safekeeping agent, MUFG Union Bank, N.A. - The Private Bank (UBTPB). 5 5

0.975

2.700

0.850

0.523
-

0.5 1.0 1.5 2.0 2.5 3.0
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)
Feb'22
($1.074)
Mar'22
($3.641)
Apr'22
($1.858)

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

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Information Technology Department
SUBJECT: Professional Services Agreement With Electric Citizen, LLC For Website Maintenance, Support, And Improvement
RECOMMENDATION:

That Council authorize the Information Technology Director to execute a five-year professional services agreement with Electric Citizen, LLC in an amount not to exceed $194,978.

DISCUSSION:

Background
On July 20, 2021, Council approved the award of a contract with Electric Citizen, LLC for development and delivery of a new content management system to replace the City’s website. The website had become increasingly unstable and experienced critical outages that made it difficult for City residents and businesses to utilize the website for information, to pay fees, obtain licenses, reserve City facilities, and to access a myriad of City services.

Over the following year, the Information Technology Web Team and every department within the organization have worked tirelessly to replace the City’s existing website platform keeping the two priorities expressed by Council for the new platform: 1) native multi-lingual architecture; and, 2) improved features to assist users with various physical limitations.

The expected go-live for the new website platform is early summer 2022.

Current Status
Once the new website platform is operational, it will require maintenance, support, and additional improvements so that it is well-maintained, secure, and constantly evolving.

Agenda Item No. 12
File Code No. 170.04
Council Agenda Report
Professional Services Agreement With Electric Citizen, LLC For Website Maintenance, Support, And Improvement
June 7, 2022

Electric Citizen, LLC is the website developer and thus they are currently the sole source of support.

Maintenance, support, and improvement tasks can include appearance changes, feature enhancements, bug fixes, menu changes, uptime monitoring, user training, performance tuning, new feature development, security updates, among other tasks.

BUDGET/FINANCIAL INFORMATION:

Costs for this contract is included in the Information Technology’s recommended Fiscal Year 2023 operating budget, which is currently before Council for consideration. For Fiscal Year 2024 and beyond, the costs of the contract will be included in future budget proposals.

The costs for annual website maintenance, support, and improvements are as follows:

Item FY2023 FY2024 FY2025 FY2026 FY2027 Total
Website
maintenance,
support, and
improvements
$36,000 $38,000 $39,140 $40,314 $41,524 $194,978
Payment terms Planned Planned Not to Exceed Not to Exceed Not to Exceed Not to Exceed A copy of the contract will be available in the Clerk’s Office for public review.

PREPARED BY: Scott Nelson, Webmaster
SUBMITTED BY: Justin Cure, Information Technology Director APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Golf Division, Parks and Recreation Department
SUBJECT: Emergency Purchase Order To Courseco For Pre-Owned Toro Rough Mower
RECOMMENDATION:

That Council receive the report of the Parks and Recreation Director of the need to make an emergency purchase order (EPO #32201400) to Courseco for a pre-Owned Toro Rough Mower.

DISCUSSION:

The Santa Barbara Golf Club has two rough mowers that are critical for Golf Course maintenance. One is a backup mower that is old and due for replacement. Before a new mower could be purchased, the backup mower broke down. Repairs to the old mower will cost over $22,000. Given the cost, it did not make fiscal sense to repair the old mower due to its advanced age and poor condition. CourseCo located a preowned Toro Rough Mower in excellent condition ready for purchase. Due to the immediate need for a backup mower, it was determined that a preowned equipment purchase was the best course of action as the timeline to purchase a new mower is currently at least 8 months. The Department consulted with Purchasing, which advised the use of an emergency purchase order for this acquisition due to the unexpected or unplanned break or failure of the critical piece of equipment that is necessary for providing essential public recreational service at the public course.

BUDGET/FINANCIAL INFORMATION:

Total cost of the purchase order is $35,343.75. This project is funded by the Golf Fund.

There is sufficient expenditure appropriation in the Fiscal Year 2022 Golf Capital Improvement Fund to cover the cost of this Project.

PREPARED BY: Tina Nelson, Business Manager
SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director Agenda Item No. 13
Council Agenda Report
Emergency Purchase Order To Courseco For Pre-Owned Toro Rough Mower June 7, 2022

Rev. 041619
APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Recreation Division, Parks and Recreation Department SUBJECT: Personal Services Agreements For Classes, Clinics, Camps, And Tournaments For Youth And Adults
RECOMMENDATION: That Council:

A. Authorize the Parks and Recreation Director to execute a personal services agreement with 805 Beach Volleyball Club, a Limited Liability Company, for the provision of Fiscal Year 2023 Beach Volleyball Camps, Clinics, Classes, and Tournaments for youth and adults, with compensation equal to 65% of the total basic fees collected and the total compensation estimated at $175,000 based on the projected number of participants;
B. Authorize the Parks and Recreation Director to execute a personal services agreement with Shane Carmody, an individual, for the provision of Fiscal Year 2023 Tennis and Beach Camps and After School Tennis Clinics, with compensation equal to 65% of the total basic fees collected and the total compensation estimated at $60,000 based on the projected number of participants;
C. Authorize the Parks and Recreation Director to execute a personal services agreement with Dave Wilcox, an individual, for the provision of Fiscal Year 2023 Pickleball Classes and Clinic for youth and adults, with compensation equal to 65% of the total basic fees collected and the total compensation estimated at $175,000 based on the projected number of participants; and D. Authorize the Parks and Recreation Director to execute a personal services agreement with Isaac Rosas, an individual doing business as Youth Evolution Activities, for the provision of Fiscal Year 2023 Basketball and Soccer Classes, Clinics, and Camps for youth, with compensation equal to 65% of the total basic fees collected and the total compensation estimated at $70,000 based on the projected number of participants.

Agenda Item No. 14
File Code No. 570.06
Council Agenda Report
Personal Services Agreements For Classes, Clinics, Camps, And Tournaments For Youth And Adults
June 7, 2022

DISCUSSION:

The Recreation Division of the Parks and Recreation Department (Department) offers various classes, clinics, camps, and tournaments for youth and adults that are organized and delivered by a third-party contractor. Parents and participants continue to overwhelmingly support the programs provided by these four contractors. On July 1, 2022, the City will enter into personal services agreements as follows:

1. 805 Beach Volleyball Club, in the amount of $175,000 for the provision of 11 oneweek youth beach volleyball camps in spring and summer, four two-week after school youth clinics, four four-week adult evening classes, and one one-day adult tournament.

2. Shane Carmody, in the amount of $60,000 for the provision of seven one-week Tennis and Beach Camps in summer, and twenty three-day after school tennis clinics.

3. Dave Wilcox, in the amount of $175,000 for the provision of four six-week adult clinics, six three-day adult clinics, four three-day youth clinics, and two five-day youth summer camps.

4. Isaac Rosas, in the amount of $70,000 for the provision of three one-week soccer camps, three one-week basketball camps, four six-week basketball clinics, and four six-week soccer clinics.

BUDGET/FINANCIAL INFORMATION:

Per the agreements, the contractors are paid 65% of each registration fee collected, calculated using the basic resident rate. Contract amounts are based on the projected number of participants.

The Parks and Recreation Department proposed Fiscal Year 2023 General Fund operating budget includes sufficient appropriations to cover the costs of these services.

Copies of the agreements may be requested from the Parks and Recreation Department for public review by contacting Rose Nevarez at [email protected].

PREPARED BY: Adam Porte, Acting Senior Recreation Supervisor SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Water Resources Division, Public Works Department SUBJECT: Emergency Purchase Order To Quinn Company To Repair The 900 KW Generator At El Estero Water Resource Center
RECOMMENDATION:

That Council receive the report from the Public Works Director of the need to make an emergency purchase order (EPO #32201058) to Quinn Company (Quinn) for repairs to the 900 KW Generator at El Estero Water Resource Center and rental of a temporary generator during the repair period.

DISCUSSION:

On January 13, 2022, upon completion of regular preventative maintenance at El Estero Resource Center (EEWRC), staff responded to an alarm for a fault on the 900KW Generator during a test run. Quinn, the City’s contracted maintenance provider, responded onsite to investigate and troubleshoot the fault. It was discovered that coolant was in the engine oil, which lead to a failed head gasket being found and rendering the engine inoperable. Quinn deployed a temporary generator on January 14, 2022 to maintain plant emergency power service and began repairs to the existing generator on January 19, 2022. The repairs were completed on February 16, 2022 and final negotiations and invoicing with Quinn were completed on April 7, 2022.

The 900KW provides emergency power directly to essential electrical circuits at EEWRC bypassing the main distribution grid, which is aging and is slated for replacement.

EEWRC recently had a transformer require replacement, and the reliability of the other equipment was of concern. Staff contracted with Quinn to rent an emergency generator to supply power to the emergency distribution grid while Quinn performed repairs on the 900KW generator. Since the EEWRC is the only facility capable of treating the City’s wastewater this facility is in operation 24 hours per day, 7 days per week, thus making it imperative that a temporary generator be available under emergency provisions to protect public health and the environment until the 900KW Generator can be repaired.

The standard procurement process would require extended time to solicit proposals and execute a contract. The time to solicit multiple proposals would significantly delay the repair and increased the probability and risks associated relying solely on aging electrical Agenda Item No. 15
File Code No. 540.13
Council Agenda Report
Emergency Purchase Order To Quinn Company To Repair The 900 KW Generator At El Estero Water Resource Center
June 7, 2022

equipment that is slated for replacement. Given the significance of EEWRC and its role in protecting public health and the environment the need to get this work done via an emergency purchase order is justified.

BUDGET/FINANCIAL INFORMATION:

Total cost of the purchase order is $81,730.51. There are sufficient expenditure appropriations in the adopted Wastewater Operating Fund budget in Fiscal Year 2022 to cover the cost of the emergency purchase order with Quinn Company.

ENVIRONMENTAL REVIEW:

Public Works declared this event as an emergency per SBMC § 4.52.080 in order to maintain services essential to the public health, safety and welfare. Such work is exempt from the California Environmental Quality Act under Public Resources Code § 21080 (b)(2) and CEQA Guidelines § 15269(b).

PREPARED BY: Amanda L. Flesse, P.E., Wastewater System Manager/TW/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: June 7, 2022
TO: Mayor and Councilmembers
FROM: Recreation Division, Parks and Recreation Department SUBJECT: Lease Agreements With Non-Profit Organizations At The Westside And Franklin Community Centers
RECOMMENDATION: That Council:

A. Authorize the Parks and Recreation Director to execute annual lease agreements for office space at the Westside Community Center for the Independent Living Resource Center and Momentum Work, Inc. (a recent merge of UCP Work, Inc., and UCP of Los Angeles, Ventura, and Santa Barbara Counties); and B. Authorize the Parks and Recreation Director to execute annual lease agreements for office space at the Franklin Community Center for California Rural Legal Assistance, Inc., and the Santa Barbara County Immigrant Legal Defense Center.

DISCUSSION:

The Parks and Recreation Department administers lease agreements for facility space at below-market rates with local non-profit social service providers at two of its three Community centers; specifically, the Westside and Franklin Community Centers. Leases are negotiated annually and commence on July 1, 2022, and all four lease agreements are renewals.

BUDGET/FINANCIAL INFORMATION:

The monthly rental rate for leased space is $1.49 per square foot as proposed in the Fiscal Year 2023 Schedule of Fees and Charges. The total annual revenue from the four lease agreements is $163,548.36 which is appropriated in the Park and Recreation operating budget.

A copy of the agreements may be requested from the Parks and Recreation Department for public review by contacting Rose Nevarez at [email protected].

Agenda Item No. 16
File Code No. 580.04
Council Agenda Report
Lease Agreements With Non-Profit Organizations At The Westside And Franklin Community Centers
June 7, 2022

PREPARED BY: Michelle McDonnell, Recreation Supervisor
REVIEWED BY: Rich Hanna, Recreation Manager
SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Finance Department,Treasury Division
SUBJECT: Agreement For Armored Courier Services For Fiscal Year 2022 RECOMMENDATION:

That Council authorize the Finance Director to extend the agreement for Fiscal Year 2022 with Garda World in the amount not to exceed $40,000 for armored courier services.

DISCUSSION:

In July 2018, the City entered into a one year agreement for armored courier services to securely transport cash deposits from various city locations to Union Bank, the bank which provides the City’s banking services, for Fiscal Year (FY) 2019. In September 2019, the City entered into a second agreement, extending services for FY2020. The term of the second agreement included a clause for an automatic annual renewal.

Since the onset of the COVID 19 pandemic, the City has utilized this automatic renewal clause to extend the agreement for FY2021 and FY2022. In FY2019 through FY2021, the annual agreement cost was maintained around $28,000. In 2014, the City passed Resolution 14-065, which delegates authority up to $35,000 to the City Administrator to approve contracts below this amount. This is the authority for which this contract has been renewed each year.

Due to the pandemic and new economic conditions, the courier’s fuel costs, insurance, regulatory costs related to COVID-19, and security costs have increased. The courier has begun charging additional surchanges to the base agreement costs. The contract includes a fuel surcharge index and methodology with adds on a fuel surcharge based on the average cost of fuel for any 3-week U.S. national average diesel fuel price, for fuel prices between $2.50 – $4.00 per gallon, the surcharge ranges from an additional 1% to 6%. For prices over $4.00, it includes an additional 1% for every $0.25 per gallon increase. The current US National average for diesel fuel is $5.25, which equates to another 11% increase to the surcharge.

Agenda Item No. 17
File Code No. 210.01
Council Agenda Report
Agreement For Armored Courier Services For Fiscal Year 2022 June 7, 2022

In December 2021, the courier notified the City they also added another 10% “regulatory surcharge” to offset the additional insurance, security, and COVID-19 related costs they have incurred. The agreement also stipulates the dollar amount of the deposits as well as the number of deposit bags transported by the courier. Any deposit over a certain threshold also incurs “excess charges”. These excess charges average an additional $300 per month. With these increases, the annual cost to the City is now anticipated to end FY2022 closer to $38,000. If fuel prices continue to rise, the cost could be higher, therefore staff recommend a not-to-exceed amount of $40,000 for the agreement. With these new increased costs, the agreement amount now exceeds the authority granted under Resolution 14-065.

City staff will review the courier’s contract renewal proposal in FY2023 and evaluate the possibility of issuing an RFP. Given economic conditions, however, it is likely the cost will remain much higher than historical levels.

BUDGET/FINANCIAL INFORMATION:

The Finance Department’s FY2022 adopted budget has sufficient expenditure appropriation authority to cover the agreement costs.

PREPARED BY: Jennifer Tomaszewski, Finance & Treasury Manager SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Fire Prevention Division, Fire Department
SUBJECT: Adoption Of Resolution Regarding Renewal Of Levy For Fiscal Year 2023 For The Wildland Fire Suppression Assessment District RECOMMENDATION:

That Council adopt, by reading of title only, A Resolution of the Council of the City of Santa Barbara Declaring its Intention to Continue Vegetation Road Clearance, Implementation of a Defensible Space Inspection and Assistance Program, and Implementation of a Vegetation Management Program Within the Foothill and Extreme Foothill Zones; Declaring the Work to be of More Than General or Ordinary Benefit and Describing the District to be Assessed to Pay the Costs and Expenses Thereof; Approving the Updated Engineer’s Report; Confirming Diagram and Assessment; and Ordering Levy of the Wildland Fire Suppression Assessment for Fiscal Year 2023.

DISCUSSION:

On July 11, 2006, the City Council adopted Resolution 06-064 which declared the Council’s intention to order expansion of vegetation road clearance, implementation of a defensible space inspection and assistance program, and implementation of a vegetation management program within the Foothill and Extreme Foothill Zones of the High Fire Hazard Area. The Resolution described the special benefit to be assessed and approved an Engineer’s Report, confirmed the diagram and assessment, and ordered levy of the Wildland Fire Suppression Assessment for Fiscal Year 2007. As required by the Resolution, the assessment must be renewed annually by Council. The City has renewed the Wildland Fire Suppression Assessment for the past eleven years.

Assessment funds continue to reduce the risk and severity of wildland fires through the reduction of flammable vegetation. The assessment provides three primary services:

1. Vegetation Road Clearance: Each year the assessment provides approximately 14 miles of road clearance. The frequency is such that most roads in the District are cleared of impeding vegetation every three years. Clearing vegetation from the roadways is required of property owners by law and allows for safer egress of residents and ingress of first responders during an emergency. In Fiscal Year 2022 Agenda Item No. 18
File Code No. 520.03
Council Agenda Report
Adoption Of Resolution Regarding Renewal Of Levy For Fiscal Year 2023 For The Wildland Fire Suppression Assessment District
June 7, 2022

we cleared 12 Miles of roadways, representing 110 tons of vegetation. We expect to complete 14 Miles of roadway clearance by the end of FY 2023.

2. Defensible Space Inspection and Assistance: This element of the assessment provides assistance to property owners in creating defensible space around their homes. Defensible space is a key element in preventing the ignition of homes during a wildfire by reducing the exposure of the home to burning vegetation. Defensible space assistance will again involve scores of site visits to assist homeowners. In addition, the assessment provides chipping services to residents of the District after the vegetation has been cut. Chipping provides a cost effective way for homeowners to dispose of cut material. The chipped vegetation may be reused as a ground cover in landscaping.

3. Vegetation Management: Vegetation management is the selective removal of flammable vegetation in open land outside of property owner’s defensible space.

The goal is to lessen the severity of a fire, in the event that one occurs, by depriving the fire of a large amount of fuel. This is accomplished by preferentially removing exotic plants, thinning, pruning and limbing vegetation to remove fire ladders, limbing up the canopy and pruning out dead material. Vegetation management retains the overall look of wildland areas and minimizes impacts to natural resources while reducing the amount of flammable vegetation. Vegetation management was successfully completed on 10 acres in Fiscal Year 2022. These projects require staff to strengthen the public-private relationship by working with multiple, individual property owners and contract crews to link individual parcels across larger areas of adjacent land. By working in cooperation with multiple property owners, there is a greater impact on reducing the community threat from wildfire. In addition to vegetation removal, this project also accomplished education, protection of natural resources unique to the area and outlined individual maintenance programs. The project areas are identified in the 2021 Community Wildfire Protection Plan (CWPP).

Annual Levy:

The Wildland Fire Assessment may be annually increased by the Consumer Price Index (CPI) in an amount not to exceed 4% per year. In adjusting for the CPI, the allowable increase is calculated using the CPI from the past year plus any deferred increases from previous years. For Fiscal Year 2023, staff and the Assessment Engineer propose a CPI increase of 4.0%. The rate for Fiscal Year 2023, as suggested in the Engineer’s Report (see Attachment), will therefore be set at $92.18 per single family home located within the boundary of the Foothill Zone and $114.30 per single family home located within the Extreme Foothill Zone boundary. Total anticipated revenues to be generated from the assessment are $307,617 for Fiscal Year 2023. For comparison, the Fiscal Year 2022 rates were $88.64 and $109.91 respectively, generating a total of $295,542. The increased revenue anticipated for Fiscal Year 2023 will allow us to continue to provide the same level of service in all three areas.

Council Agenda Report
Adoption Of Resolution Regarding Renewal Of Levy For Fiscal Year 2023 For The Wildland Fire Suppression Assessment District
June 7, 2022

Hearing
On May 3, 2022, the Council adopted Resolution No. 22-030 to declare its intent to renew the Wildland Fire Suppression Assessment within the Foothill and Extreme Foothill Zones and to set a time of 2:00 p.m. on Tuesday, June 7, 2022, for a public hearing on the Wildland Fire Suppression Assessment District. Staff recommends that the Wildland Fire Suppression Assessment be continued for Fiscal Year 2023 to fund and deliver these successful mitigation programs.

BUDGET/FINANCIAL INFORMATION:

The estimated $307,617 cost of providing services in Fiscal Year 2023 is recovered through the resident-approved Wildland Fire Suppression Assessment levied on the annual property tax bills of property owners within the Assessment District boundaries.

Both the cost of providing the services and the Assessment District revenue have been included in the Wildland Fire Suppression Assessment District Fund budget for Fiscal Year 2023. No additional budget appropriations are necessary.

SUSTAINABILITY IMPACT:

Vegetation removed through vegetation road clearance and the defensible space chipping assistance program is chipped and spread back on to the ground or in areas of local parks where feasible. The goal is reuse at least 80% of all chipped material locally avoiding the cost of disposal fees, extra vehicle trips and landfill use. Non-native pest plants are not chipped, but rather hauled off-site to be disposed of properly. In 2022 we exceeded that goal, achieving 100% reuse.

ATTACHMENT: Preliminary Engineer’s Report
PREPARED BY: Ryan DiGuilio, Fire Marshal
SUBMITTED BY: Chris Mailes, Fire Chief
APPROVED BY: City Administrator’s Office
FY 2022‐23
City of Santa Barbara
Wildland Fire Suppression Assessment
PRELIMINARY ENGINEER’S REPORT
April 2022
Pursuant to California Government Code Section 50078 et seq., and Article XIIID of the California Constitution

ATTACHMENT
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23
Page i
(This Page Intentionally Left Blank)
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23
Page ii
City of Santa Barbara
City Council
Randy Rowse, Mayor
Eric Friedman, Councilmember
Oscar Gutierrez, Councilmember
Alejandra Gutierrez, Councilmember
Meagan Harmon, Councilmember
Mike Jordan, Councilmember
Kristen Sneddon, Councilmember
Fire Prevention Bureau
Chris Mailes, Fire Chief
Ryan DiGuilio, Fire Marshal
Chris Braden, Fire Services Specialist
City Attorney’s Office
Ariel Pierre Calonne, City Attorney
Sarah Knecht, Assistant City Attorney
Engineer of Work
SCI Consulting Group
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23
Page iii

Table of Contents
0BIntroduction ...................................................................................................... 1 1BDescription of Services ...................................................................................... 9 2BCost and Budget .............................................................................................. 11 2BMethod of Apportionment ............................................................................. 12 Method of Apportionment ......................................................................................... 12 Discussion of Benefit .................................................................................................. 12 Benefit Factors ........................................................................................................... 13 Benefit Finding ........................................................................................................... 15 General Versus Special Benefit .................................................................................. 15 Calculating General Benefit ........................................................................................ 17 Zones of Benefit ......................................................................................................... 19 Assessment Apportionment ....................................................................................... 21 Method of Assessment ............................................................................................... 22 Criteria and Policies .................................................................................................... 27 4BAssessment ..................................................................................................... 28 5BAssessment Diagram ....................................................................................... 31 5BAppendices ..................................................................................................... 33 Appendix A – Assessment Roll, FY 2022‐23................................................................ 33 Appendix B – California Government Code Section 50078 et. seq. ........................... 34 Appendix C – Article XIIID of the California Constitution ........................................... 37 End Notes ....................................................................................................... 41 City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23
Page iv

List of Figures
Figure 1 – Wildland Fire History in Santa Barbara County .................................................. 1 Figure 2 ‐ Cost and Budget FY 2022‐23 ............................................................................. 11 Figure 3 ‐ Relative Hazard/Risk Scoring for High Fire Hazard Area Zones ........................ 20 Figure 4 ‐ Scoring System .................................................................................................. 20 Figure 5 ‐ Wildland Fire Risk Factors ................................................................................. 21 Figure 6 – Structure Value Factors .................................................................................... 23 Figure 7 ‐ Relative Benefit Factors for Foothill and Extreme Foothill Zones .................... 25 0 BIntroduction
The City of Santa Barbara is located about  100 miles northwest of Los Angeles, largely on  the slopes  between  the  Pacific  Ocean  and  the  Santa  Ynez  Mountains.  The  City  of  Santa  Barbara provides fire services throughout the City limits. Fire services include fire suppression, protection, prevention, evacuation planning, and education.

Due  to  topography,  location,  climate  and  infrastructure,  the  Santa  Barbara  community  has  a relatively high inherent risk of wildland fires. Listed below are some of the major wildland fires that have occurred in Santa Barbara County since 1970:

Figure 1 – Wildland Fire History in Santa Barbara County Year  Fire Name  Acres  Homes Lost
1971  Romero Canyon Fire  14,538 4
1977  Sycamore Canyon Fire  805 234
1977  Hondo Canyon Fire  10,000 0
1979  Eagle Canyon Fire  4,530 5
1990  Painted Cave Fire  4,900 524
1993  Marre Fire  43,864 0
2002  Sudden Fire  7,160 0
2004  Gaviota Fire  7,440 1
2007  Zaca Fire  240,207 0
2008  Gap Fire  9,443 0
2008  Tea Fire  1.940 210
2009  Jesusita Fire  8,733 80
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

2016  Sherpa Fire  7,474 0
2016  Rey Fire  32,606 0
2016  Canyon Fire  12,518 0
2017  Thomas Fire  281,893 1,063
2019  Holiday Fire  113 24
2019  Cave Fire  3,126 0
2021  Loma Fire  7 0
2021  Alisal Fire  16,970 12
In  response  to  the  considerable  wildland  fire  risk  in  the  area,  the  City  of  Santa  Barbara  Fire Department prepared a Wildland Fire Plan in January, 2004, in which it identified four High Fire Hazard Zones: The Coastal Zone,  the Coastal Interior Zone,  the Foothill Zone, and  the Extreme Foothill  Zone.  The  two  Zones  with  the  highest  wildland  fire  risk  are  the  Foothill  and  Extreme Foothill Zones (the “Zones”), and these are the Zones that are included in this assessment.

These Zones are at a high risk of wildland fires due to the following factors:
 Climate. The climate consists of cool, moist winters and hot, dry summers. The low humidity and high summer temperatures increase the likelihood that a spark will ignite a fire in the area, and that the fire will spread rapidly.  Topography. Periodic wind conditions known as “Sundowner” and “Santa Ana” winds interact with the steep slopes in the Santa Ynez Mountains and the ocean influence, resulting in an increase in the speed of the wind to severe levels. These two types of wind conditions increase the likelihood that fires will advance downslope towards the Foothill and Extreme Foothill Zones. In addition, these winds can greatly increase the rate at which a fire will spread.
 Chaparral. Much of the undeveloped landscape is covered with chaparral. Chaparral sheds woody, dead, and organic materials rich in flammable oils, which accumulate over time. Areas covered with chaparral typically experience wildland fires which burn the accumulated plant materials, and renew the chaparral for its next cycle of growth.

Therefore, areas of chaparral which are not thinned, and from which the dead plant City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

materials are not removed or burned off in prescribed fires, provide ample opportunities for wildland fires to occur and to spread.  Road Systems. Many of the roads in the Foothill and Extreme Foothill Zones do not meet current Fire Department access and vegetation road clearance standards, and many are made even more narrow due to the encroachment of vegetation. A number of the bridges have weight requirements that are below Fire Department weight standards. In addition, many driveways are long and steep, posing a safety hazard. All of these factors make it more difficult and more hazardous for the Fire Department to provide fire suppression services in these areas.
 Water Supply. In the Extreme Foothill Zone, the City water supply is limited in some areas, and not available in others. These factors increase the risks associated with fires, due to the reduced availability of water to fight any fires that occur.  Fire Response Time. Much of the Extreme Foothill Zone, and some of the Foothill Zone, is outside the City’s 4 minute Fire Department response time. As a result, fires in these areas may have more time to spread and to increase in severity before fire suppression equipment can reach them.
 Proximity to the Los Padres National Forest. The Los Padres National Forest (LPNF) is a large forest to the north of the Foothill and Extreme Foothill zones.  The LPNF provides a great deal of potential fuel for any wildland fire in the area. Wildland fires that start in the LPNF have the potential to move south toward the Foothill and Extreme Foothill zones.

This Engineer’s Report  (the "Report") was prepared  to: 1) contain  the information  required by Government Code Section 50078.4, including  a) a description of each lot or parcel of property to be subject to the assessment, b) the amount of the assessment for each lot or parcel for the initial fiscal year, c) the maximum amount of the assessment which may be levied for each lot or parcel during any fiscal year, d) the duration of the assessment, e) the basis of the assessment, f) the schedule  of  the  assessment,  and  g)  a  description  specifying  the  requirements  for  protest  and hearing  procedures  for  the  assessment  pursuant  to  Section  50078.6;  2)  establish  a  budget  to provide services to reduce the severity and damage from wildland fires (the "Services") that will be funded by the 2022‐23 assessments; 3) determine the benefits received from the Services by property  within  the  City  of  Santa  Barbara Wildland  Fire  Suppression  Assessment  District  (the "Assessment District") and; 4) assign a method of assessment apportionment to lots and parcels within the Assessment District. This Report and the assessments have been made pursuant to the California Government Code Section 50078 et. seq. (the "Code") and Article XIIID of the California Constitution (the “Article”).

In Fiscal Year 2006‐07, the City of Santa Barbara City Council (the “Council”) by Resolution called for an assessment ballot proceeding and public hearing on the then‐proposed establishment of a wildland fire suppression assessment.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

On May 5, 2006 a notice of assessment and assessment ballot was mailed to property owners within  the proposed Assessment District boundaries. Such notice included a description of  the Services  to be  funded by  the proposed assessments, a proposed assessment amount  for each parcel owned, and an explanation of the method of voting on the assessments. Each notice also included a postage prepaid ballot on which the property owner could mark his or her approval or disapproval of the proposed assessments as well as affix his or her signature.

After  the  ballots  were  mailed  to  property  owners  in  the  Assessment  District,  the  required minimum 45 day time period was provided  for the return of the assessment ballots. Following this 45 day time period, a public hearing was held on June 20, 2006 for the purpose of allowing public testimony regarding the proposed assessments. At the public hearing, the public had the opportunity to speak on the issue. After the conclusion of the public input portion of the hearing, the hearing was continued to July 11, 2006 to allow time for the tabulation of ballots.

With the passage of Proposition 218 on November 6, 1996, The Right to Vote on Taxes Act, now Article XIIIC and XIIID of the California Constitution, the proposed assessments could be levied for fiscal year 2006‐07, and continued in  future years, only if the ballots submitted in  favor of the assessments  were  greater  than  the  ballots  submitted  in  opposition  to  the assessments.  (Each ballot is weighted by the amount of proposed assessment for the property that it represents).

After the conclusion of the public input portion of the Public Hearing held on June 20, 2006, all valid received ballots were tabulated by the City of Santa Barbara Clerk. At the continued public hearing on July 11, 2006, after the ballots were tabulated, it was determined that the assessment ballots  submitted  in  opposition  to  the  proposed  assessments  did  not  exceed  the  assessment ballots submitted in favor of the assessments (weighted by the proportional financial obligation of the property for which ballots are submitted).

As a result, the Council gained the authority to approve the levy of the assessments for fiscal year 2006‐07 and to continue to levy them in future years. The Council took action, by a Resolution passed on July 31, 2006, to approve the first year levy of the assessments for fiscal year 2006‐07.

The authority granted by the ballot proceeding was for a maximum assessment rate of $65.00 per single  family  home,  increased each  subsequent  year  by  the  Los  Angeles  Area  Consumer  Price Index (CPI) not to exceed 4% per year. In the event that the annual change in the CPI exceeds 4%, any percentage change in excess of 4% can be cumulatively reserved and can be added  to the annual change in the CPI for years in which the CPI change is less than 4%.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

In  each  subsequent  year  for  which  the  assessments  will  be  continued,  the  Council  must preliminarily  approve  at  a  public  meeting  a  budget  for  the  upcoming  fiscal  year’s  costs  and services, an updated annual Engineer’s Report, and an updated assessment roll listing all parcels and  their  proposed  assessments  for  the  upcoming  fiscal  year.      A  new  Engineer’s  Report  is prepared each year in order  to establish  the CPI adjustment  for  that year;  the new maximum authorized assessment rate for that year; the budget for that year; and the amount to be charged to each parcel in the District that year, subject to that year’s assessment rate and any changes in the attributes of the properties in the District, including but not limited to use changes, parcel subdivisions,  and/or  parcel  consolidations.  At  this  meeting,  the  Council  will  also  call  for  the publication in a local newspaper of a legal notice of the intent to continue the assessments for the next fiscal year and set the date for the noticed public hearing. At the annual public hearing, members  of  the  public  can  provide  input  to  the  Council  prior  to  the  Council’s  decision  on continuing the services and assessments for the next fiscal year.

If  the  assessments  are  so  confirmed  and  approved,  the  levies  will  be  submitted  to  the  Santa Barbara County Auditor/Controller for inclusion on the property tax roll for Fiscal Year 2022‐23.

The levy and collection of the assessments will continue year‐to‐year until terminated by the City Council.

If the City Council approves this Engineer's Report for fiscal year 2022‐23 and the assessments by Resolution, a notice of assessment levies must be published in a local paper at least 10 days prior to the date of the public hearing. Following the minimum 10‐day time period after publishing the notice,  a  public  hearing  will  be  held  for  the  purpose  of  allowing  public  testimony  about  the proposed continuation of the assessments for fiscal year 2022‐23.

A Public Hearing is scheduled for June 7, 2022.  At this hearing, the Council will consider approval of a resolution confirming the assessments for fiscal year 2022‐23. If so confirmed and approved, the assessments will be submitted to the Santa Barbara County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2022‐23.

The  Assessment  District  is  narrowly  drawn  to  include  only  properties  that  benefit  from  the additional  fire protection services  that are provided by  the assessment  funds. The Assessment Diagram included in this report shows the boundaries of the Assessment District.

In  2008  per  California  Public  Resource  Code  4201‐4204 and Government  Code  51175  ‐89,  the Office of the State Fire Marshal (OSFM) completed an analysis to identify Local Responsibility Area areas  of  Very  High  Fire  Hazard  Severity  Zones  (VHFHSZ)  within  the  City  of  Santa  Barbara.

Discussions  between OSFM and  the  City  of Santa Barbara Fire Department were  concluded in 2010. As a result, additional parcels have been added to the 2004 City of Santa Barbara high fire hazard  area,  Foothill  Zone.  These  additional  parcels  are  not  included  in  the  Wildland  Fire Suppression  Assessment  District  at  this  time,  and  Services  provided  to  these  parcels  are  not funded from this assessment.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Proposition 218
This assessment was  formed consistent with Proposition 218, The Right  to Vote on Taxes Act, which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to  fund  the  cost  of  providing  services,  improvements,  as  well  as  maintenance  and  operation expenses to a public improvement which benefits the assessed property.

Proposition  218  describes  a  number  of  important  requirements,  including  a  property‐owner balloting,  for  the  formation  and  continuation  of  assessments,  and  these  requirements  were satisfied by the process used to establish this assessment.

Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority
In  July  of  2008,  the  California  Supreme  Court  issued  its  ruling  on  the  Silicon  Valley  Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA vs. SCCOSA”) case.  This ruling is  the most significant legal decision clarifying Proposition 218.  Several of  the most important elements of the ruling included further emphasis that:
 Benefit assessments are for special, not general benefit  The services and/or improvements funded by assessments must be clearly defined  Special benefits are directly received by and provide a direct advantage to property in the Assessment District
This Engineer’s Report is consistent with the SVTA vs. SCCOSA decision and with the requirements of  Article  XIIIC  and  XIIID  of  the  California  Constitution  because  the  Services  to  be  funded  are clearly defined;  the Services are available to all benefiting property in the Assessment District, the benefiting property in the Assessment District will directly and tangibly benefit from improved protection  from  fire damage, increased safety of property and other special benefits and such special  benefits  provide  a  direct  advantage  to  property  in  the Assessment  District  that  is  not enjoyed by the public at large or other property. There have been a number of clarifications made to the analysis, findings and supporting text in this Report to ensure that this consistency is well communicated.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Dahms v. Downtown Pomona Property
On  June 8, 2009,  the Court of Appeal for  the Second District of California amended its original opinion upholding a benefit assessment district for property in the downtown area of the City of Pomona.  On July 22, 2009, the California Supreme Court denied review and the court's decision in Dahms became binding precedent for assessments.  In Dahms, the court upheld an assessment that conferred a 100% special benefit to the assessed parcels on the rationale that the services and improvements funded by the assessments were provided directly and only to property in the assessment  district over  and  above  those  services  or  improvements  provided  by  the  city generally.

Bonander v. Town of Tiburon
On December 31, 2009, the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon.  The Court invalidated the assessments on the ground that the assessments had been apportioned  to  assessed  property  based,  in  part,  on  relative  costs  within  sub‐areas  of  the assessment district instead of proportional special benefits.

Beutz v. County of Riverside
On May 26, 2010 the 4th District Court of Appeals issued a decision on the Steven Beutz v. County of Riverside (“Beutz”) appeal.  This decision overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits.

Golden Hill Neighborhood Association v. City of San Diego On  September  22,  2011,  the  San  Diego  Court  of  Appeal  issued  a  decision  on  the  Golden  Hill Neighborhood Association v. City of San Diego appeal.  This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Compliance with Current Law
This  Engineer’s  Report  is  consistent  with  the  requirements  of  Article  XIIIC  and  XIIID  of  the California Constitution and with the SVTA decision because the Services to be funded are clearly defined; the Services are available to and will be directly provided to all benefiting property in the Assessment District; and the Services provide a direct advantage to property in the Assessment District that would not be received in absence of the Assessments.

This  Engineer’s  Report  is  consistent  with  Dahms  because,  similar  to  the  Downtown  Pomona assessment  validated  in  Dahms,  the  Services  will  be  directly  provided  to  property  in  the Assessment District.  Moreover, while Dahms could be used as the basis for a finding of 0% general benefits, this Engineer’s Report establishes a more conservative measure of general benefits.

The  Engineer’s  Report  is  consistent  with  Bonander  because  the  Assessments  have  been apportioned based on the overall cost of the Services and proportional special benefit to each property. Finally, the Assessments are consistent with Buetz because the general benefits have been explicitly calculated and quantified and excluded from the Assessments.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

1 BDescription of Services
The City of Santa Barbara Fire Department provides a range of fire protection, prevention, and educational services to the City and its residents.

The following is a description of the wildland fire suppression Services that are provided for the benefit  of  property within  the Assessment District.   Prior  to  the  passage  of  the assessment in 2006, the baseline level of service was below the standard described in the City’s 2004 Wildland Fire Plan.  Due to inadequate funding, the level of service continued to diminish and would have diminished further had this assessment not been instituted.  With the passage of this assessment, the services were enhanced significantly.  The formula below describes the relationship between the final level of improvements, the baseline level of service (pre 2006) had the assessment not been instituted, and the enhanced level of improvements funded by the assessment.

Baseline level of service is pre‐2006.

The services (the “Services”) undertaken by the City of Santa Barbara Fire Department and the cost  thereof  paid  from  the  levy  of  the  annual  assessment  provide  special  benefit  to  Assessor Parcels within the Assessment District as defined in the Method of Assessment herein.  In addition to  the  definitions  provided  by  the  California  Government  Code  Section  50078  et.  seq.,  (the “Code”) the Services are generally described as follows:
 Expansion of the vegetation road clearance program to cover all public roads within the Foothill and Extreme Foothill Zones. This program reduces fuel, enhance evacuation routes, and decrease fire response times
 Implementation of a defensible space and fire prevention inspection and chipping assistance program for all properties in the Foothill and Extreme Foothill Zones  Implementation of a vegetation management program in the Foothill and Extreme Foothill Zones
As  applied  herein,  “vegetation  road  clearance”  means  the  treatment,  clearing,  reducing,  or changing  of  vegetation  near  roadways  in  the  Foothill  and  Extreme  Foothill  Zones  where vegetation poses a fire hazard and does not meet Fire Department Vegetation Road Clearance Standards within the high fire hazard area (As provided in Santa Barbara Municipal Code Section

8.04).

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

“Defensible space” is a perimeter created around a structure where vegetation is treated, cleared or reduced to slow the spread of wildfire towards a structure, reduce the chance of a structure fire burning to the surrounding area, and provides a safe perimeter for firefighters to protect a structure (As provided in Chapter 49 of the California Fire Code, as adopted by the City of Santa Barbara pursuant to Santa Barbara Municipal Code Section 8.04). “Vegetation  management”  means  the  reduction  of  fire  hazard  through  public  education, vegetation hazard reduction, and other methods as needed to manage vegetation in areas with unique hazards such as heavy, flammable vegetation, lack of access due to topography and roads, and/or firefighter safety.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

2 BCost and Budget
Figure 2 ‐ Cost and Budget FY 2022‐23
Total
Budget
Services Costs
Evacuation Planning - Evacuation Roadway Clearing1
Staffing $64,000
Materials $5,500
Project Costs $57,000
Defensible Space2
Staffing $48,000
Materials $7,500
Chipping Program $68,000
Vegetation Management3
Staffing $62,000
Project Costs $10,973
Totals for Installation, Maintenance and Servicing $322,973 Less: District Contribution for General Benefits ($25,000) Net Cost of Installation, Maintenance and Servicing to Assessment District $297,973 Incidental Costs:

District Administration and Project Management $6,150
Allowance for County Collection $3,494
Subtotals - Incidentals $9,644
Total Wildland Fire Suppression District Budget $307,617 (Net Amount to be Assessed)
Assessment District Budget Allocation to Parcels
Total Assessment Budget $307,617
Single Family Equivalent Benefit Units in District 3 ,337 Assessment per Single Family Equivalent Unit (SFE) $92.18

CITY OF SANTA BARBARA
Wildland Fire Suppression Assessment
Estimate of Costs
Notes:

1.  Evacuation Planning ‐ Evacuation Roadway Clearing: Staffing costs include City Fire Department staff. Materials Costs includes traffic signage, notification letters, and door hangers to inform homeowners of start dates. Project costs include the utilization of contractors, equipment and manpower required to complete Roadway Clearance.

2.  Defensible Space: Staffing costs include City Fire Department staff and inputting Defensible Space Evaluation reports into Accela. Materials Costs for Annual Chipping includes traffic signage, notification letters, door hangers and sandwich boards to inform homeowners of start dates. Chipping program includes direct costs to coordinate, communicate and provide equipment and manpower in support of chipping program. This includes the cost of contracting a chipper and truck to dispose of chipped material.

3. Vegetation Management: Staffing costs include City Fire Department staff including the coordination, communication and cooperation of homeowners involved in projects. Project costs include contractor, roll‐off dumpster, porta‐potty, on‐site signage and notification to homeowners on starting dates.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

2 BMethod of Apportionment
Method of Apportionment
This section includes an explanation of the special benefits derived from the Services, the criteria for  the  expenditure  of  assessment  funds  and  the  methodology  used  to  apportion  the  total assessments to properties within the Assessment District.

The  Assessment  District  area  consists  of  all  Assessor  Parcels  within  the  Foothill  and  Extreme Foothill zones of the High Fire Hazard Area as defined by the 2004 Wildland Fire Plan. The method used for apportioning the assessment is based upon the proportional special benefits from the Services  derived  by  the  properties  in  the  assessment  area  over  and  above  general  benefits conferred on real property or to the public at large.  Special benefit is calculated for each parcel in the Assessment District using the following process:

1. Identification of all benefit factors derived from the Improvements

2. Calculation of the proportion of these benefits that are general

3. Determination  of  the  relative  special  benefit  within  different  areas  within  the Assessment District

4. Determination of the relative special benefit per property type

5. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit; location, property type, property characteristics, improvements on property and other supporting attributes
Discussion of Benefit
California  Government  Code  Section  50078  et.  seq.    allows  agencies  which  provide  fire suppression services, such as the City of Santa Barbara Fire Department, to levy assessments for fire suppression services. Section 50078 states the following:
“Any local agency which provides fire suppression services directly or by contract with the state  or  a  local  agency  may,  by  ordinance  or  by  resolution  adopted  after  notice  and hearing, determine and levy an assessment for fire suppression services pursuant to this article.”
In addition, California Government Code Section 50078.1 defines the term “fire suppression” as follows:
“(c) "Fire suppression" includes firefighting and fire prevention, including, but not limited to, vegetation removal or management undertaken, in whole or in part, for the reduction of a fire hazard.”
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Therefore, the Services provided by the Assessment District fall within the scope of services that may be funded by assessments under the Code.

The  assessments  can  only  be  levied  based  on  the  special  benefit  to  property.    This  benefit  is received by property over and above any general benefits. Moreover, such benefit is not based on  any  one  property  owner’s  specific  use  of  the  Services  or  a  property  owner’s  specific demographic status. With reference to the requirements for assessments, Section 50078.5 of the California Government Code states:
"(b) The benefit assessment shall be levied on a parcel, class of improvement to property, or  use  of  property  basis,  or  a  combination  thereof,  within  the  boundaries  of  the  local agency, zone, or area of benefit.”
“The assessment may be levied against any parcel, improvement, or use of property to which such services may be made available whether or not the service is actually used." Proposition  218,  as  codified  in  Article  XIIID  of  the  California  Constitution,  has  confirmed  that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." Since  assessments  are  levied  on the  basis  of  special  benefit,  they  are  not  a  tax  and  are  not governed by Article XIIIA of the California Constitution.

The  following  section  describes  how  and  why  the  Services  specially  benefit  properties.    This benefit is particular and distinct from its effect on property in general or the public at large.

Benefit Factors
In order to allocate the assessments, the Engineer identified the types of special benefit arising from the Services that are provided to property in the Assessment District.  These benefit factors confer a direct advantage to the assessed properties; otherwise they would be general benefit.

The following benefit categories have been established that represent the types of special benefit conferred to residential, commercial, industrial, institutional and other lots and parcels resulting from the services to reduce the severity and damage from wildland fires that are provided in the Assessment District. These categories of special benefit are derived from the statutes passed by the California Legislature and other studies, which describe the types of special benefit received by  property  from  the  Services  of  the  Assessment  District.  These  types  of  special  benefit  are summarized as follows:

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Increased safety and protection of real property assets for all property owners within the Assessment District.

As summarized previously, properties in the Assessment District are currently at higher risk for wildland  fires. Uncontrolled  fires would have a devastating impact on all properties within  the Assessment District. The assessments  fund an increase in services to mitigate  the wildland  fire threat, and  thereby can significantly  reduce  the  risk of property damage associated with  fires.

Clearly,  fire mitigation helps  to protect and specifically benefits both improved properties and vacant properties in the Assessment District.
"Fire is the largest single cause of property loss in the United States. In the last decade, fires have caused direct losses of more  than $120 billion and countless billions more in related cost."D
1 “Over 140,000 wildfires occurred on average each year, burning a  total of almost 14.5 million  acres.  And  since  1990,  over  900  homes  have  been  destroyed  each  year  by wildfires.”D
2 “A wildfire sees your home as just another fuel source. The survivable space you construct around your home will keep all but the most ferocious wildfires at bay.”D 3 “A  reasonably  disaster‐resistant  America  will  not  be  achieved  until  there  is  greater acknowledgment of  the importance of  the  fire  service and a willingness at all levels of government to adequately fund the needs and responsibilities of the fire service.”D 4 “The  strategies  and  techniques  to  address  fire  risks  in  structures  are  known.  When implemented, these means have proven effective in the reduction of losses.” D 5 “Statistical  data  on  insurance  losses  bears  out  the  relationship  between  excellent  fire protection…and low fire losses.” D
6 Protection of views, scenery and other resource values, for property in the Assessment District
The Assessment District provides funding for the mitigation of the wildland fire threat to protect public and private resources in the Assessment District. This benefits even those properties that are not directly damaged by fire by maintaining and improving the aesthetics and attractiveness of public and private resources in the community, as well as ensuring that such resources remain safe and well maintained.
“Intensely burned forests are rarely considered scenic.” D 7 “Smoke affects people…for example; in producing haze that degrades the visual quality of a sunny day…The other visual quality effect is that of the fire on the landscape. To many people, burned landscapes are not attractive and detract from the aesthetic values of an area.”D
8 “A visually preferred landscape can be the natural outcome of fuels treatments.”D 9 City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Enhanced utility and desirability of the properties in the Assessment District.

The  assessments  fund  Services  to  reduce  the  severity  and  damage  from  wildland  fires  in  the Assessment District. Such Services enhance the overall utility and desirability of the properties in the Assessment District.
“Residential  satisfaction  surveys  have  found  that  having  nature  near  one’s  home  is extremely important in where people choose to live…This is especially true at the wildland‐ urban interface where some of the most serious fuels management must occur.” D 10 “People are coming to the [Bitterroot] valley in part because of its natural beauty which contributes to the quality of life that so many newcomers are seeking.”D 11 Benefit Finding
In summary, real property located within the boundaries of the Assessment District distinctly and directly benefits from increased safety and protection of real property, increased protection of scenery and views, and enhanced utility of properties in the Assessment District.  These are special benefits to property in much the same way that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of property and make them more functional to use, safer and easier to access.

General Versus Special Benefit
Article  XIIIC  of  the  California  Constitution  requires  any  local  agency  proposing  to  increase  or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.”  The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. The assessment can fund special benefits but cannot fund general benefits.  Accordingly, a separate estimate of the special and general benefit is given in this section.

In other words:

There  is  no  widely‐accepted  or  statutory  formula  for  general  benefit.    General  benefits  are benefits  from improvements or services  that are not special in nature, are not “particular and distinct”  and  are  not  “over  and  above”  benefits  received  by  other  properties.  SVTA  vs.

SCCOSA provides  some  clarification  by  indicating  that  general  benefits  provide  “an  indirect, derivative advantage” and are not necessarily proximate to the improvements.

Total
Benefit =
General
Benefit + Special Benefit
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

The  starting  point  for evaluating general and  special benefits is  the pre  2006  baseline level of service, had  the assessment not  been approved by  the  community.  The assessment will  fund Services “over and above” this general, baseline level and the special benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.”  The SVTA v. SCCOSA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).”   In this assessment, as noted, the improved Services are available when needed to all properties in the Assessment District, so the overwhelming proportion of the benefits conferred to property is special, and are only minimally received by property outside the Assessment District or the public at large.

Proposition 218  twice uses  the phrase “over and above” general benefits in describing special benefit.    (Art.  XIIID,  sections  2(i)  &  4(f).)    Arguably,  all  of  the  Services  being  funded  by  the assessment would be a special benefit because the Services particularly and distinctly benefit the properties in the Assessment District over and above the baseline benefits.

Nevertheless, arguably some of the Services benefit the public at large and properties outside the Assessment District.  In this report, the general benefit is conservatively estimated and described, and then budgeted so that it is funded by sources other than the assessment. (In the 2009 Dahms case, the court upheld an assessment that conferred a 100% special benefit to the  assessed  parcels  on  the  rationale  that  the  services and  improvements  funded  by  the assessments  were  provided directly  and only  to  property  in  the  assessment  district  over  and above those services or improvements provided by the city generally. Similarly, the Assessments described in this Engineer’s Report fund wildland fire services directly and only to the assessed parcels located within  the assessment area.  Moreover, every property within  the Assessment District will receive the Services. While the Dahms decision would permit an assessment based on 100% special benefit and zero or minimal general benefits, in this report, the general benefit is estimated and described and budgeted so that it is funded by sources other than the Assessment.) City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Calculating General Benefit
This section provides a measure of the general benefits from the assessments Benefit to Property Outside the Assessment District
Properties  within  the  Assessment  District  receive  almost  all  of  the  special  benefits  from  the Services  because  the  Services  will  be  provided  solely  in  the  Assessment  District  boundaries.

Properties proximate to, but outside of, the boundaries of the Assessment District receive some benefit  from  the Services due  to some degree of indirectly  reduced  fire  risk  to  their property.

These parcels that are proximate to the boundaries of the Assessment District are estimated to receive less than 50% of the benefits relative to parcels within the Assessment District because they do not directly receive the improved fire protection resulting from the Services funded by the Assessments.

At  the  time  the  Assessment  District  was  formed,  there  were  approximately  550  of  these “proximate” properties.

Although it can reasonably be argued that properties protected inside, but near the Assessment District boundaries are offset by similar fire protection provided outside, but near the Assessment District’s boundaries, we use the more conservative approach of finding that 6.7% of the Services may be of general benefit to property outside the Assessment District.

Benefit to Property Inside the District that is Indirect and Derivative The  “indirect and  derivative”  benefit  to  property within  the Assessment District is  particularly difficult to calculate. A solid argument can be presented that all benefit within the Assessment District is special, because the Services are clearly “over and above” and “particular and distinct” when  compared  with  the  pre‐2006  baseline  level  of  Services,  had  the  assessment  district  not passed.

Assumptions:
550 parcels outside the district but proximate to the District Boundaries 3,550 parcels in the Assessment District.
50% relative benefit compared to property within the Assessment District.

Calculation:

General Benefit to property outside the Assessment District = (550/(550+3,550))*0.5=6.7%
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

In determining the Assessment District boundaries, the District has been careful to limit it to an area  of  parcels  that will  directly  receive  the  benefit  of  the improved Services.  All  parcels will directly benefit from the use of the improved Services throughout the Assessment District in order to  achieve  the  desired  level  of  wildland  fire  suppression  and  protection  throughout  the Assessment District.  Fire protection and suppression will be provided as needed throughout the area.

The SVTA vs. SCCOSA decision indicates that the fact that a benefit is conferred throughout the Assessment District area does not make the benefit general rather than special, so long as the Assessment District is narrowly drawn and limited to the parcels directly receiving shared special benefits  from  the  service.    This  concept  is  particularly  applicable  in  situations  involving  a landowner‐approved assessment‐funded extension of a local government service to benefit lands previously not receiving that particular service.  The Fire Department therefore concludes that, other  than  the  small  general  benefit  to  properties  outside  the Assessment  District  (discussed above) and to the public at large (discussed below), all of the benefits of the Services to the parcels within the Assessment District are special benefits and it is not possible or appropriate to separate any general benefits from the benefits conferred on parcels in the Assessment District.

Benefit To The Public At Large
With  the  type and  scope  of Services  provided  to  the Assessment District, it is very  difficult  to calculate and quantify the scope of the general benefit conferred on the public at large.  Because the Services directly serve and benefit all of the property in the Assessment District, any general benefit conferred on the public at large would be small.  Nevertheless, there may be some indirect general benefit to the public at large.

The public at large uses the public highways and other regional  facilities when traveling in and through the Assessment District and they may benefit from the services without contributing to the assessment. Although the protection of this critical infrastructure is certainly a benefit to all the property within the Assessment District, it is arguably “indirect and derivative” and possibly benefits people rather than property. A fair and appropriate measure of the general benefit to the  public  at  large  therefore  is  the  amount  of  highway,  and  regional  facilities  within  the Assessment  District  relative  to  the  overall  land  area.    An  analysis  of  maps  of  the  Assessment District  shows  that  less  than  1.0%  of  the  land  area  in  the  Assessment  District  is  covered  by highways and  regional  facilities.  This  1.0%  therefore is a  fair and appropriate measure  of  the general benefit to the public at large within the Assessment District Summary of General Benefits
Using  a  sum  of  the  measures  of  general  benefit  for  the  public  at  large  and  land  outside  the Assessment District, we find that approximately 7.7% of the benefits conferred by the Assessment District may be general in nature and should be funded by sources other than the assessment.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

The  Assessment District’s  total  budget  for  2022‐23  is  $322,973.  The  Assessment District must obtain  funding  from  sources  other  than  the assessment  in  the  amount  of at  least  $24,868.92 ($322,973*7.7%) to pay for the cost of the general benefits. This is because the assessments levied by the Fire Department may not exceed the special benefits provided by the Services, and  the Assessment Engineer concluded that a combined total of 7.7% of the cost of Services provide a general benefit to properties outside the Assessment District and a benefit to the public at large.

For Fiscal Year 2022‐23, the City will contribute at least $24,868, or 7.7% of the total Assessment District budget, to the Assessment District from sources other than this assessment to cover the cost of the general benefits.

Zones of Benefit
Initially,  the Fire Department evaluated  the geographic area within and around  the  City limits (including the City of Santa Barbara, Santa Barbara County, Montecito and National Forest lands) based  upon  three  fire  hazard  risk  variables:  vegetation  (fuel),  topography  and  weather.  This analysis was used to narrowly determine the boundaries of the “high fire hazard area.”  Further, zones  were  narrowly  drawn  within  the  high  fire  hazard  area  and  graded  “extreme,”  “high,” “moderate” or “low”. Next, the Fire Department evaluated the roof type, proximity of structures, road systems, water supply, fire response times and historic fire starts within the high fire hazard area and developed 4 specific zones:
 Extreme Foothill Zone
 Foothill Zone
 Coastal Zone
 Coastal Interior Zone
These zones were used to apply appropriate policies and actions based upon hazard and risk. The results of this analysis were tabulated and presented in Tables 2 through 4 in the 2004 Wildland Fire Plan.

General Benefit Calculation

6.7%  (Outside the Assessment District)
+   0.0%    (Inside the district – indirect and derivative) +  1.0%   (Public at Large)
=  7.7%  (Total General Benefit)
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Accordingly, “Zones of Benefit” corresponding to the fire risk zones are used to equitably assign special benefit, and are used for the basis of the “Fire Risk Factors” discussed below. Each zone was narrowly drawn, and has been given a score, based upon the evaluated risk criteria, as shown in Figure 3. (The assessment provides Services in the Extreme Foothill Zone and the Foothill Zone only.)
Figure 3 ‐ Relative Hazard/Risk Scoring for High Fire Hazard Area Zones Hazard/Risk
Attribute
Extreme
Foothill
Zone
Foothill
Zone
Coastal
Zone
Coastal
Interior
Zone
Combined Hazard
Assessment ‐
vegetation (fuel),
topography,
weather*
40  30  20  10

Roof Type**  1  2  2  3
Proximity  1  3  1  3
Road  3  3  1  1
Water  3  1  1  1
Response  3  2  2  2
Ignitions  1  1  1  1

Total Score  52  42  28  21
* The Hazard Assessment element of this analysis is the most significant. Scores have been “weighted” by a factor of 10.
** In the Extreme Foothill Zone fire retardant roofing materials are more prevalent, resulting in lower risk in this area.

Figure 4 shows the numeric scoring system used to develop the relative total scores.

Figure 4 ‐ Scoring System
Qualititative
Score
Numeric
Score
Very High 4
High 3
Moderate 2
Low 1
The total relative scores for each zone are tabulated and normalized, based up the Foothill Zone, and shown in Figure 5.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Figure 5 ‐ Wildland Fire Risk Factors
Zone  Raw Score  Wildland Fire Risk Factor
Extreme Foothill Zone  52  1.24
Foothill Zone  42  1.00
Coastal Zone**  28  .67
Coastal Interior Zone**  21  .50
**Coastal Zone and Coastal Interior Zone are included in this analysis for clarity; however these zones are not included in the Assessment District.

Assessment Apportionment
In the process of determining the appropriate method of assessment, the Assessment Engineer considered  various  alternatives.  For  example,  an  assessment  only  for  all  residential  improved property was considered but was determined to be inappropriate because vacant, commercial, industrial and other properties also receive special benefits from the assessments.

Moreover,  a  fixed  or  flat  assessment  for  all  properties  of  similar  type  was  deemed  to  be inappropriate  because  larger  commercial/industrial  properties  and  residential  properties  with multiple dwelling units receive a higher degree of benefit than other similarly used properties that are  significantly  smaller.  For  two  properties  used  for  commercial  purposes,  there  clearly  is  a higher benefit provided to the larger property in comparison to a smaller commercial property because  the  larger  property  generally  supports  a  larger  building  and  has  higher  numbers  of employees,  customers  and  guests  that  benefit  from  reduced  wildland  fire  risk.  This  benefit ultimately flows to the property. Larger parcels, therefore, receive an increased benefit from the assessments.

The  Assessment  Engineer  determined  that  the  appropriate  method  of  assessment  should  be based on the type of property, the relative size of the property and the potential use of property by residents and employees. This method is further described below.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Method of Assessment
The next step in apportioning assessments is to determine the relative special benefit for each property.  This  process  involves  determining  the  relative  benefit  received  by  each  property  in relation to a "benchmark" property, a single family detached dwelling on one parcel of one acre or  less  in  the  Foothill  Zone  (one  “Single  Family  Equivalent  Benefit  Unit”  or  “SFE”).  This  SFE methodology  is  commonly  used  to  distribute  assessments  in  proportion  to  estimated  special benefits and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. In this Engineer’s Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single family home on one parcel.

The relative benefit to properties from fire related Services is:

Equation 1 – Relative Benefit to Properties
Benefit   ≈  ∑ (Fire Risk Factors)   ∗ ∑ (Structure Value Factors) That is, the benefit conferred to property is the “sum” the risk factors multiplied by the “sum” of the structure values factors.

Fire Risk Factors
Typical  fire  assessments  (non‐wildland)  are  evaluated  based  upon  the  fire  risk  of  a  certain property type. These evaluations consider factors such as use of structure (e.g. used for cooking), type of structure (centralized heating), etc.

Wildland  fires, on  the other hand, are initiated largely  from external ignitions and are  far less affected by  structural, mechanical and electrical  systems inherent  to  the building  (except  roof type). The principle Wildland fire risk factors are:
 Vegetation (fuel)
 Topography
 Weather
 Roof type
 Proximity of Structure
 Road Systems
 Water Supply
 Response
 Ignitions
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

These  factors  were  fully  evaluated  in  the  2004 Wildland  Fire  Plan  and  are  manifested  in  the relative  zone  scores as  shown in Figures  3,  4 and  5, above. Hence,  the Fire  Risk  Factor  for all properties within the Foothill Zone is 1.00 and the Fire Risk Factor for all properties in the Extreme Foothill Zone is 1.24.

Structure Value Factors
The relative value of different property types was evaluated within the high fire hazard area to determine the Structure Value Factor according to the following formula:

Equation 2 ‐ Structure Value Factors
∑ (Structure Value
Factors)
≈
(Structure Weighting
Factor
∗
Average Improved
Value)
∗
(Land Weighting
Factor
∗
Average Total
Value)
∗ (Unit Density
Factor)
Where:
“Structure Weight Factor” = 10 to “weight” relative importance of structure over land. “Average Improved Value” is average of value of all improvements (e.g. structures), per property type, as provide by County Assessor records.

Land Weighting Factor = 1
“Average Total Value” is average of value of all land + improvements (e.g. structures), per property type, as provide by County Assessor records.  County assessor land values were not used directly because experience has shown total values to be more comprehensive. “Unit Density Factor” corresponds values with units (i.e. “per residential unit” or “per acre”) based upon effective density of structure on parcel.

Figure  6  below  is  a  tabulation  of  the  Structure  values  for  each  property  type  as  defined  by Equation 2, above.

Figure 6 – Structure Value Factors
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Property Type  Structure Value Factor  Unit
Single Family  1.0000  per each*
Multi‐Family  0.3683
per res.
unit
Commercial/Industrial  0.8187  per acre
Office  0.7058  per acre
Institutional  0.3841  per each
Storage  0.0952  per acre
Agricultural  0.0809  per acre
RangeLand  0.0181  per acre
Vacant  0.0324  per each
*for homes on an acre or less. For homes on more than one acre, the Structure Value Factor is increased by 0.0809 per acre
Residential Properties
All improved residential properties with a single residential dwelling unit on one acre or less are assigned one Single Family Equivalent or 1.0 SFE in the Foothill Zone. In the Extreme Foothill Zone, all  improved  residential  properties  on  one  acre  or  less  are  assessed  1.24  SFEs  (See  Table  5).

Residential properties on parcels  that are larger  than 1 acre receive additional benefit and are assigned additional SFEs on a “per acre” basis. Detached or attached houses, zero‐lot line houses and town homes are included in this category.

Properties  with  more  than  one  residential  unit  are  designated  as  multi‐family  residential properties. These properties benefit from the Services in proportion to the number of dwelling units that occupy each property. The relative benefit for multi‐family properties was determined as  per  Equation  1  to  be  0.3683  SFEs  per  residential  unit  in  the  Foothill  Zone  and  0.4567  per residential unit in the Extreme Foothill Zone. This rate applies to condominiums as well.

Commercial/Industrial & Office Properties
Commercial  and  industrial  properties  are  assigned  benefit  units  per  acre,  since  there  is  a relationship  between  parcel  size,  structure  size  and  relative  benefits.  The  relative  benefit  for commercial and industrial properties was determined as per Equation 1  to be 0.8187 SFEs per acre in the Foothill Zone and 1.0151 per acre in the Extreme Foothill Zone. The relative benefit for office properties was determined as per Equation 1 to be 0.7058 SFEs per acre in the Foothill Zone and 0.8751 per acre in the Extreme Foothill Zone.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Vacant/Undeveloped, Open Space and Agricultural Properties The relative benefit for vacant properties was determined as per Equation 1 to be 0.0324 SFEs per parcel in the Foothill Zone and 0.04012 per parcel in the Extreme Foothill Zone. Open space and agricultural land have minimal improvements and few, if any; structures that require defensible space, and are assigned benefit “per acre.” The relative benefit  for open space properties was determined as per Equation 1 to be 0.0181 SFEs per acre in the Foothill Zone and 0.0224 per acre in the Extreme Foothill Zone. The relative benefit for agricultural properties was determined as per Equation 1 to be 0.0809 SFEs per acre in the Foothill Zone and 0.1002 per acre in the Extreme Foothill Zone.

Other Properties
Institutional properties, such as publicly owned properties (and are used as such), for example, churches,  are  assessed  at  0.3841  per  parcel  in  the  Foothill  zone  and  0.4762  per  Parcel  in  the Extreme Foothill zone. The relative benefit for storage properties was determined as per Equation 1 to be 0.0952 SFEs per acre in the Foothill Zone and 0.1180 per acre in the Extreme Foothill Zone.

Article XIIID, Section 4 of the California Constitution states that publicly owned properties shall not  be  exempt  from  assessment  unless  there  is  clear  and  convincing  evidence  that  those properties receive no special benefit.

All public properties  that are specially benefited are assessed. Publicly owned property  that is used  for  purposes  similar  to  private  residential,  commercial,  industrial  or  institutional  uses  is benefited and assessed at the same rate as such privately owned property.

Summary of Benefits for Each Property Type
Figure 7 summarizes the relative benefit for each property type.

Figure 7 ‐ Relative Benefit Factors for Foothill and Extreme Foothill Zones Foothill Zone
Extreme Foothill
Zone
Property Type
Benefit Factors
(SFEs) Unit
Benefit Factors
(SFEs) Unit
Single Family 1.0000 per each 1.2400 per each
Multi-Family 0.3683 per unit 0.4567 per unit
Commercial/Industrial 0.8187 per acre 1.0152 per acre
Office 0.7058 per acre 0.8752 per acre
Institutional 0.3841 per each 0.4763 per each
Storage 0.0952 per acre 0.1181 per acre
Agricultural 0.0809 per acre 0.1003 per acre
RangeLand 0.0181 per acre 0.0225 per acre
Vacant 0.0324 per each 0.0402 per each
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Appeals of Assessments Levied to Property
Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the Fire Chief of the City of Santa Barbara Fire Department or his or her designee. Any such appeal is limited to correction of an assessment during the then current fiscal year. Upon the filing of any such appeal, the Chief or his or her designee will promptly review the appeal and any information provided by the property owner. If the Chief or his or her designee finds  that  the  assessment  should  be  modified,  the  appropriate  changes  shall  be  made  to  the assessment roll. If any such changes are approved after the assessment roll has been filed with the County for collection, the Chief or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the Chief or his or her designee shall be referred to the City Council and the decision of the Council shall be final.

Additional Background on Relative Benefit
In  essence,  when  property  owners  are  deciding  how  to  cast  their  ballot  for  a  proposed assessment, each property owner must weigh the perceived value of the Services proposed to them and their property with the proposed cost of the assessment to their property. If property owners of a certain type of property are either opposed or in support of the assessment in much greater percentages than owners of other property types, this is an indication that, as a group, these  property  owners  perceive  that  the  proposed  assessment  has  relatively  higher  or  lower “utility” or value to their property relative to owners of other property types. One can also infer from these hypothetical ballot results, that the apportionment of benefit (and assessments) was too high or too low for that property type. In other words, property owners, by their balloting, ultimately indicate if they perceive the special benefits to their property to exceed the cost of the assessment, and, as a group, whether the determined level of benefit and proposed assessment (the  benefit  apportionment made  by  the  Assessment  Engineer)  is  consistent  with  the  level  of benefits perceived by the owners of their type of property relative to the owners of other types of property.

Duration of the Assessment
The duration of the assessment is one year, and may be continued each year by a vote of the City Council.  The  assessment  cannot  be  increased  in  future  years  without  approval  from  property owners in another assessment  ballot  proceeding, except  for an annual adjustment  tied  to  the change in the Los Angeles‐Riverside‐Orange County Area Consumer Price Index, not to exceed 4% per year.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Criteria and Policies
This sub‐section describes the criteria that shall govern the expenditure of assessment funds and ensures  equal  levels  of  benefit  for  properties  of  similar  type.  The  criteria  established  in  this Report, as finally confirmed, cannot be substantially modified; however, the Council may adopt additional  criteria  to  further  clarify  certain  criteria  or  policies  established  in  this  Report  or  to establish additional criteria or policies that do not conflict with this Report.

Assessment Funds Must Be Expended Within the Foothill and Extreme Foothill Zones
The net available assessment  funds, after incidental, administrative,  financing and other costs, shall  be  expended  exclusively  for  Services  within  the  boundaries  of  the  Assessment  District, namely, the Foothill and Extreme Foothill Zones.

Existing General Funds
Prior  to  formation  of  the  assessment,  these  Wildland  Fire  Services  were  funded  with approximately $200,000 from the City of Santa Barbara general fund. A general fund contribution of at least $200,000 has been provided each year, and will continue to be provided in future years by the City, to the extent feasible.

This $200,000+ contribution, which comes in the form of direct funds and manpower, is used to support Wildland Fire Services throughout the City including the Coast area, as well as broad, city‐ wide public outreach, planning and policy etc., and to pay for any and all general benefits from the assessment‐related services, as required and as described on page 18, above.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

4 BAssessment
WHEREAS, the City Council of the City of Santa Barbara is proceeding with the proposed levy of assessments under California Government Code sections 50078 et seq. (the “Code”) and Article XIIID of the California Constitution (the “Article”);
WHEREAS, the  undersigned  Engineer  of  Work  has  prepared  and  filed  a  report  presenting  an estimate of costs, a diagram for the Assessment District and an assessment of the estimated costs of the Services upon all assessable parcels within the Assessment District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under said Code and Article and the order of the Council of said City, hereby make the following assessment to cover the portion of the estimated cost of said Services, and the costs and expenses incidental thereto to be paid by the Assessment District.

The amount  to be paid  for said Services and the expense incidental  thereto,  to be paid by the Assessment District for the fiscal year 2022‐23 is generally as follows:

Summary Cost Estimate FY 2022‐23
Evacuation Planning – Evacuation Roadway Clearing $126,500 Defensible Space $123,500
Vegetation Management $72,973
Total for Installation, Maintenance and Servicing $322,973 Less: Contribution for General Benefits ($25,000)
Incidental Costs:

Administration and Project Management $6,150
Allowance for County collection $3,494
Subtotal – Incidentals $9,644
Total Wildland Fire Suppression Assessment Budget $307,617 Budget
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

An  Assessment  Diagram  is  hereto  attached  and  made  a  part  hereof  showing  the  exterior boundaries of said Assessment District. The distinctive number of each parcel or lot of land in said Assessment District is its Assessor Parcel Number appearing on the Assessment Roll.

I  do  hereby  assess  and  apportion said  net  amount  of  the  cost  and  expenses  of  said  Services, including the costs and expenses incident thereto, upon the parcels and lots of land within said Assessment District, in accordance with the special benefits to be received by each parcel or lot, from the Services, and more particularly set forth in the Cost Estimate and Method of Assessment hereto attached and by reference made a part hereof.

The assessment is subject to an annual adjustment tied to the annual change in the Consumer Price Index for the Los Angeles‐Riverside‐Orange County Area as of January of each succeeding year, with the maximum annual adjustment not to exceed 4%.

In  the event  that the actual assessment rate  for any given year is not increased by an amount equal to the maximum of 4% or the yearly CPI change plus any CPI change in previous years that was in excess of 4%, the maximum authorized assessment shall increase by this amount. In such event,  the  maximum  authorized  assessment  shall  be  equal  to  the  base  year  assessment  as adjusted by the increase to the CPI, plus any and all CPI adjustments deferred in any and all prior years. The CPI change above 4% can be used in a future year when the CPI adjustment is below 4%. For 2022‐23, the allowable CPI increase is 6.569%.

Hence,  the  proposed  rates  for 2022‐23 will  increase  by  4.00%  from  the  2021‐22  rates –  from $88.64 to $92.18 per single family home in the Foothill Zone and from $109.91 to $114.30 per single family home in the Extreme Foothill Zone. The excess, unused CPI of 2.569% will be banked for potential use in future years.  The total revenue derived from the assessment is $307,617 for 2022‐23.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the City of Santa Barbara for the fiscal year 2022‐23. For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of Santa Barbara County.

I hereby place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the fiscal year 2022‐23 for each parcel or lot of land within the said Assessment District.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Dated: May 3, 2022
Engineer of Work
By
John W. Bliss, License No. C052091
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

5 BAssessment Diagram
The  Assessment  District  includes  all  properties  within  the  boundaries  of  the  Wildland  Fire Suppression District.  The boundaries of the Assessment District are displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Assessment District are  those lines and dimensions as  shown on  the maps of  the Assessor of  the County of Santa Barbara, for fiscal year 2022‐23, and are incorporated herein by reference, and made a part of this Diagram and this Report.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

5 BAppendices
Appendix A – Assessment Roll, FY 2022-23
The Assessment Roll is made part of this report and is available for public inspection during normal office hours. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor  records and  these  records are,  by  reference, made  part  of  this  report. There records shall govern for all details concerning the description of the lots of parcels.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Appendix B – California Government Code Section 50078 et. seq. 50078. Any local agency which provides fire suppression services directly or by contract with the state  or  a  local  agency  may,  by  ordinance  or  by  resolution  adopted  after  notice  and  hearing, determine  and  levy  an  assessment  for  fire  suppression  services  pursuant  to  this  article.  The assessment may be made for the purpose of obtaining, furnishing, operating, and maintaining fire suppression equipment or apparatus  or  for  the purpose of paying  the  salaries and benefits of firefighting personnel, or both, whether or not fire suppression services are actually used by or upon a parcel, improvement, or property.
50078.1. As used in this article:
(a) "Legislative body" means the board of directors, trustees, governors, or any other governing body of a local agency specified in subdivision (b).
(b) "Local agency" means any city, county, or city and county, whether general law or chartered, or special district, including a county service area created pursuant to the County Service Area Law, Chapter 2.2 (commencing with Section 25210.1) of Part 2 of Division 2 of Title 3. (c)  "Fire  suppression"  includes  firefighting  and  fire  prevention,  including,  but  not  limited  to, vegetation removal or management undertaken, in whole or in part, for the reduction of a fire hazard.
50078.2. (a) The ordinance or resolution shall establish uniform schedules and rates based upon the type of use of property and the risk classification of the structures or other improvements on, or the use of, the property. The risk classification may include, but need not be limited to, the amount  of  water  required  for  fire  suppression  on  that  property,  the  structure  size,  type  of construction, structure use, and other factors relating to potential fire and panic hazards and the costs of providing the fire suppression by the district to that property. The assessment shall be related to the benefits to the property assessed.
(b) The benefit assessment levies on land devoted primarily to agricultural, timber, or livestock uses, and being used for the commercial production of agricultural, timber, or livestock products, shall be related to the relative risk to the land and its products. The amount of the assessment shall recognize normal husbandry practices that serve to mitigate risk, onsite or proximate water availability, response time, capability of the fire suppression service, and any other factors which reflect  the  benefit  to  the  land  resulting  from  the  fire  suppression  service  provided.  A  benefit assessment shall not be levied  for wildland or watershed  fire suppression on land located in a state responsibility area as defined in Section 4102 of the Public Resources Code. This subdivision is  not  applicable  to  any  benefit  assessment  levied  prior  to  January  1,  1984,  on  land  devoted primarily to agricultural, timber, or livestock uses.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

50078.3.  Any  ordinance  or  resolution  adopted  by  a  local  agency  pursuant  to  this  article establishing  uniform  schedules  and  rates  for  assessments  for  fire  suppression  services  which substantially conforms with the model ordinance which the State Fire Marshal is authorized to adopt  pursuant  to  Section  13111  of  the  Health  and  Safety  Code  shall  be  presumed  to  be  in compliance with the requirements of Section 50078.2.
50078.4. The legislative body of the local agency shall cause to be prepared and  filed with  the clerk of the local agency a written report which shall contain all of the following:
(a) A description of each lot or parcel of property proposed to be subject to the assessment. (b) The amount of the assessment for each lot or parcel for the initial fiscal year. (c) The maximum amount of the assessment which may be levied for each lot or parcel during any fiscal year.
(d) The duration of the assessment.
(e) The basis of the assessment.
(f) The schedule of the assessment.
(g) A description specifying the requirements for protest and hearing procedures for the proposed assessment pursuant to Section 50078.6.
50078.5. (a) The legislative body may establish zones or areas of benefit within the local agency and may restrict the imposition of assessments to areas lying within one or more of the zones or areas of benefit established within the local agency.
(b) The benefit assessment shall be levied on a parcel, class of improvement to property, or use of property basis, or a combination thereof, within the boundaries of the local agency, zone, or area  of  benefit.  The  assessment  may  be  levied  against  any  parcel,  improvement,  or  use  of property to which such services may be made available whether or not the service is actually used. 50078.6. The clerk of the local agency shall cause the notice, protest, and hearing procedures to comply with Section 53753. The mailed notice shall also contain the name and telephone number of  the  person  designated  by  the  legislative  body  to  answer  inquiries  regarding  the  protest proceedings.
50078.13.  The  local  agency  shall  pay  the  county  for  costs,  if  any,  incurred  by  the  county  in conducting the election. An election called by a legislative body pursuant to this article is subject to all provisions of the Elections Code applicable to elections called by the local agency. The local agency may recover the costs of the election and any other costs of preparing and levying the assessment from the proceeds of the assessment.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

50078.16.  The  legislative  body  may  provide  for  the  collection  of  the  assessment  in  the  same manner, and subject to the same penalties as, other fees, charges, and taxes fixed and collected by, or on behalf of the local agency. If the assessments are collected by the county, the county may deduct its reasonable costs incurred for that service before remittal of the balance to the local agency's treasury.
50078.17.  Chapter  9  (commencing with  Section  860)  of Title  10  of  Part  2  of  the  Code  of  Civil Procedure applies to any judicial action or proceeding to validate, attack, review, set aside, void, or annul an ordinance or resolution levying an assessment or modifying or amending an existing ordinance or resolution. If an ordinance or resolution provides for an automatic adjustment in an assessment, and the automatic adjustment results in an increase in the amount of an assessment, any  action  or  proceeding  to  attack,  review,  set  aside,  void,  or  annul  the  increase  shall  be commenced within 90 days of the effective date of the increase. Any appeal from a final judgment in  the action or proceeding brought pursuant  to  this section shall be  filed within 30 days after entry of the judgment.
50078.19. This article does not limit or prohibit  the levy or collection of any other  fee, charge, assessment, or tax for fire suppression services authorized by any other provisions of law. 50078.20. Any fire protection district may specifically allocate a portion of the revenue generated pursuant to this article to pay the interest and that portion of the principal as will become due on an annual basis on indebtedness incurred pursuant to Section 8589.13 of this code and Section 13906 of the Health and Safety Code.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Appendix C – Article XIIID of the California Constitution Proposition 218 was approved by voters as a Constitutional Amendment on November 6, 1996.

It  became  Article  XIIIC  and  Article  XIIID  of  the  California  State  Constitution  and  has  imposed additional requirements for assessment districts.  Following is a summary of the Article.

SEC.1. Application.  Notwithstanding any other provision of law, the provisions of this article shall apply to all assessments, fees and charges, whether imposed pursuant to state statute or local government charter authority. Nothing in this article or Article XIIIC shall be construed to:
(a) Provide any new authority to any agency to impose a tax, assessment, fee, or charge. (b) Affect existing laws relating  to  the imposition of  fees or charges as a condition of property development.
(c) Affect existing laws relating to the imposition of timber yield taxes.

SEC. 2. Definitions.  As used in this article:
(a) "Agency" means any local government as defined in subdivision (b) of Section 1 of Article XIIIC. (b) "Assessment" means any levy or charge upon real property by an agency for a special benefit conferred  upon  the  real  property.  "Assessment"  includes,  but  is  not  limited  to,  "special assessment," "benefit assessment," "maintenance assessment" and "special assessment tax." (c)  "Capital  cost"  means  the  cost  of  acquisition,  installation,  construction,  reconstruction,  or replacement of a permanent public improvement by an agency. (d) "District" means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property‐related service. (e) "Fee" or "charge" means any levy other than an ad valorem tax, a special tax, or an assessment, imposed  by  an agency  upon a  parcel  or  upon a  person as an  incident  of  property  ownership, including a user fee or charge for a property related service. (f)  "Maintenance  and  operation  expenses"  means  the  cost  of  rent,  repair,  replacement, rehabilitation, fuel, power, electrical current, care, and supervision necessary to properly operate and maintain a permanent public improvement.
(g) "Property ownership" shall be deemed to include tenancies of real property where tenants are directly liable to pay the assessment, fee, or charge in question.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

(h) "Property‐related  service"  means  a  public  service  having  a  direct  relationship  to  property ownership.
(i) "Special  benefit"  means  a  particular  and  distinct  benefit  over  and  above  general  benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit." SEC. 3. Property Taxes, Assessments, Fees and Charges Limited. (a) No tax, assessment, fee, or charge shall be assessed by any agency upon any parcel of property or upon any person as an incident of property ownership except: (1) The ad valorem property tax imposed pursuant to Article XIII and Article XIIIA. (2) Any special tax receiving a two‐thirds vote pursuant to  Section  4  of  Article  XIIIA.  (3)  Assessments  as  provided  by  this  article.  (4)  Fees  or charges for property related services as provided by this article. (b) For purposes of this article, fees for the provision of electrical or gas service shall not be deemed charges or fees imposed as an incident of property ownership.

SEC. 4. Procedures and Requirements for All Assessments. (a) An agency which proposes to levy an assessment shall identify all parcels which will have a special  benefit  conferred  upon  them  and  upon  which  an  assessment  will  be  imposed.  The proportionate special benefit derived by each identified parcel shall be determined in relationship to  the  entirety  of  the  capital  cost  of  a  public  improvement,  the  maintenance  and  operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and an agency shall separate  the general benefits  from  the special benefits conferred on a parcel. Parcels within a district that are owned or used by any agency, the State of California or the United States shall not  be  exempt  from  assessment  unless  the  agency  can  demonstrate  by  clear  and  convincing evidence that those publicly owned parcels in fact receive no special benefit. (b) All assessments shall be supported by a detailed engineer's report prepared by a registered professional engineer certified by the State of California.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

(c) The amount of the proposed assessment for each identified parcel shall be calculated and the record owner of each parcel shall be given written notice by mail of the proposed assessment, the total amount  thereof  chargeable  to  the entire  district,  the amount  chargeable  to  the  owner's particular parcel, the duration of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated, together with the date, time, and location  of  a  public  hearing  on  the  proposed  assessment.  Each  notice  shall  also  include,  in  a conspicuous place thereon, a summary of the procedures applicable to the completion, return, and tabulation of the ballots required pursuant to subdivision (d), including a disclosure statement that the existence of a majority protest, as defined in subdivision (e), will result in the assessment not being imposed.
(d) Each notice mailed to owners of identified parcels within the district pursuant to subdivision (c)  shall  contain  a  ballot  which  includes  the  agency's  address  for  receipt  of  the  ballot  once completed by any owner receiving the notice whereby the owner may indicate his or her name, reasonable  identification  of  the  parcel,  and  his  or  her  support  or  opposition  to  the  proposed assessment.
(e) The agency shall conduct a public hearing upon the proposed assessment not less than 45 days after mailing the notice of the proposed assessment to record owners of each identified parcel. At the public hearing, the agency shall consider all protests against the proposed assessment and tabulate the ballots. The agency shall not impose an assessment if there is a majority protest. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. (f) In any legal action contesting the validity of any assessment, the burden shall be on the agency to  demonstrate  that  the  property  or  properties in  question  receive a  special  benefit  over and above  the  benefits  conferred  on  the  public  at  large  and  that  the  amount  of  any  contested assessment is proportional  to, and no greater  than,  the benefits conferred on  the property or properties in question.
(g) Because only special benefits are assessable, electors residing within the district who do not own  property  within  the  district  shall  not  be  deemed  under  this  Constitution  to  have  been deprived of the right to vote for any assessment. If a court determines that the Constitution of the United States or other federal law requires otherwise, the assessment shall not be imposed unless approved by a two‐thirds vote of the electorate in the district in addition to being approved by the property owners as required by subdivision (e).

SEC. 5. Effective Date.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

Pursuant to subdivision (a) of Section 10 of Article II, the provisions of this article shall become effective the day after the election unless otherwise provided. Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article. Notwithstanding the foregoing, the following  assessments  existing  on  the  effective  date  of  this  article  shall  be  exempt  from  the procedures and approval process set forth in Section 4:
(a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control.

Subsequent  increases  in  such  assessments  shall  be  subject  to  the  procedures  and  approval process set forth in Section 4.
(b) Any assessment imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment is initially imposed. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section

4. (c) Any assessment the proceeds of which are exclusively used to repay bonded indebtedness of which the failure to pay would violate the Contract Impairment Clause of the Constitution of the United States.
(d) Any assessment which previously received majority voter approval from the voters voting in an election on the issue of the assessment. Subsequent increases in those assessments shall be subject to the procedures and approval process set forth in Section 4.

City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

End Notes
1 Insurance Services Offices Inc.

HUhttp://www.rockwall.com/FireDepartment/Insurance%20Services%20Office%20Rating%20Infor mation.pdfU
2 Institute for Business & Home Safety, “Protect Your Home Against Wildfire Damage,” HUhttp://www.ibhs.org/publications/view.asp?id=125U
3 Institute for Business & Home Safety, “Is Your Home Protected from Wildfire Damage? A Homeowner’s Guide to Retrofit,” HUhttp://www.ibhs.org/publications/view.asp?id=130U 4 U.S.  Fire  Administration,  Department  of  Homeland  Security,  “America  Burning, Recommissioned: Principal Findings and Recommendations,” p.1, HUhttp://www.usfa.fema.gov/downloads/pdf/abr‐rep.PDFU
5 U.S.  Fire  Administration,  Department  of  Homeland  Security,  “America  Burning, Recommissioned: Principal Findings and Recommendations,” p.2, HUhttp://www.usfa.fema.gov/downloads/pdf/abr‐rep.PDFU
6 Insurance Services Offices Inc., p. 1,
HUhttp://www.rockwall.com/FireDepartment/Insurance%20Services%20Office%20Rating%20Infor mation.pdfU
7 Renewable  Natural  Resources  Foundation,  “Workshop  on  National  Parks  Fire  Policy:  Goals, Perceptions, and Reality,” Renewable Resources Journal, Volume 11, Number 1, Spring 1993, p. 6 8 Weldon, Leslie A. C., “Dealing with Public Concerns in Restoring Fire to the Forest,” General Technical Report INT‐GTR‐341 The Use of Fire in Forest Restoration, U.S. Forest Service, June 1996, p. 3
9 U.S. Forest Service, Department of Agriculture, “Social Science to Improve Fuels Management:

A Synthesis of Research on Aesthetics and Fuels Management,” p. 1, HUhttp://ncrs.fs.fed.us/pubs/gtr/gtr_nc261.pdfU
City of Santa Barbara
Wildland Fire Suppression Assessment
Preliminary Engineer’s Report, FY 2022‐23

10 U.S. Forest Service, Department of Agriculture, “Social Science to Improve Fuels Management:

A Synthesis of Research on Aesthetics and Fuels Management,” p. 25, HUhttp://ncrs.fs.fed.us/pubs/gtr/gtr_nc261.pdfU
11 Weldon, Leslie A. C., “Dealing with Public Concerns in Restoring Fire to the Forest,” General Technical Report INT‐GTR‐341 The Use of Fire in Forest Restoration, U.S. Forest Service, June 1996, p. 2

RESOLUTION NO. 22-____

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA DECLARING ITS INTENTION TO

CONTINUE VEGETATION ROAD CLEARANCE,

IMPLEMENTATION OF A DEFENSIBLE SPACE

INSPECTION AND ASSISTANCE PROGRAM, AND

IMPLEMENTATION OF A VEGETATION MANAGEMENT

PROGRAM WITHIN THE FOOTHILL AND EXTREME
FOOTHILL ZONES; DECLARING THE WORK TO BE OF

MORE THAN GENERAL OR ORDINARY BENEFIT AND

DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY
THE COSTS AND EXPENSES THEREOF; APPROVING
THE UPDATED ENGINEER’S REPORT; CONFIRMING
DIAGRAM AND ASSESSMENT; AND ORDERING LEVY

OF THE WILDLAND FIRE SUPPRESSION ASSESSMENT
FOR FISCAL YEAR 2023
WHEREAS, on July 11, 2006, by its Resolution No. 06-064, after receiving a weighted majority of ballots in support of the proposed assessment, this Council ordered the formation of and levied the first assessment within the City of Santa Barbara Wildland Fire Suppression Assessment, pursuant to the authority provided in California Government Code Section 50078 et seq. and Article XIIID of the California Constitution; WHEREAS, although the methodology by which the assessments are applied to properties in the District does not change from year to year, a new Engineer’s Report is prepared each year in order to establish the CPI adjustment for that year; the new maximum authorized assessment rate for that year; the budget for that year; and the amount to be charged to each parcel in the District that year, subject to that year’s assessment rate and any changes in the attributes of the properties in the District, including but not limited to use changes, parcel subdivisions, and/or parcel consolidations;
WHEREAS, it is the intention of this Council to continue to levy and collect assessments for the Wildland Fire Suppression Assessment for Fiscal Year 2022-23. Within the Assessment District, the proposed services to be funded by the assessments (“Services”) are generally described as including but not limited to, the following: (1) continuation of the vegetation road clearance program to cover all public roads within the Foothill and Extreme Foothill Zones, continuing this program will reduce fuel, enhance evacuation routes, and decrease fire response times; (2) enhancing the defensible space fire prevention inspection and assistance program for all properties in the Foothill and Extreme Foothill Zones; and (3) implementation of a vegetation management program in the Foothill and Extreme Foothill Zones. As applied herein, “vegetation road clearance” means the treatment, clearing, reducing, or changing of vegetation near roadways in the Foothill and Extreme Foothill Zones where vegetation poses a fire hazard and does not meet Fire Department Vegetation Road Clearance Standards within the high fire hazard

area (As provided in Santa Barbara Municipal Code Section 8.04.020.M). “Defensible space” is a perimeter created around a structure where vegetation is treated, cleared or reduced to slow the spread of wildfire towards a structure, reduce the chance of a structure fire burning to the surrounding area, and provides a safe perimeter for firefighters to protect a structure (As provided in Chapter 47 of the California Fire Code, as adopted by the City of Santa Barbara pursuant to Santa Barbara Municipal Code Section 8.04). “Vegetation management” means the reduction of fire hazard through public education, vegetation hazard reduction, and other methods as needed to manage vegetation in areas with unique hazards such as heavy, flammable vegetation, lack of access due to topography and roads, and/or firefighter safety; WHEREAS, by Resolution No. 22-030 the City Council preliminarily approved the Engineer’s Report for said District and set a date for a Public Hearing; WHEREAS, the Public Hearing was held on June 7, 2022;
WHEREAS, said report was duly made and filed with the City Clerk and duly considered by this Council and found to be sufficient in every particular, whereupon it was determined that the report should stand as the Engineer’s Report for all subsequent proceedings under and pursuant to the aforesaid resolution, and that June 7, 2022, at the hour of 2:00 p.m. in the Council Chambers, City Hall, 735 Anacapa Street, Santa Barbara, were appointed as the time and place for a hearing by this Council on the question of the levy of the proposed assessment, notice of which hearing was given as required by law; and WHEREAS, at the appointed time and place the hearing was duly and regularly held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters and things pertaining to the levy were fully heard and considered by the Council, and all oral statements and all written protests or communications were duly heard, considered and overruled, and this council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer’s Report to pay the costs and expenses thereof.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The public interest, convenience and necessity require that the levy be made.

SECTION 2. The Assessment District benefited by the fire suppression services and assessed to pay the costs and expenses thereof, and the exterior boundaries thereof, are as shown by a map thereof filed in the office of the City Clerk, which map is made a part hereof by reference thereto.

SECTION 3. The Engineer's Report as a whole and each part thereof, to wit:
(a) the Engineer's estimate of the itemized and total costs and expenses of the fire suppression services and of the incidental expenses in connection

therewith;
(b) the diagram showing the assessment district, plans and specifications for the fire suppression services and the boundaries and dimensions of the respective lots and parcels of land within the Assessment District; and (c) the assessment of the total amount of the cost and expenses of the proposed fire suppression services upon the several lots and parcels of land in the Assessment District in proportion to the estimated special benefits to be received by such lots and parcels, respectively, from the maintenance, and of the expenses incidental thereto; are finally approved and confirmed.

SECTION 4. Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, estimate of the costs and expenses, the diagram and the assessment, as contained in the report as hereinabove determined and ordered, is intended to and shall refer and apply to the report, or any portion thereof as amended, modified, or revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, heretofore duly adopted or made by this Council.

SECTION 5. The assessments for fiscal year 2022-23 shall be levied at the rate of NINETY-TWO DOLLARS AND EIGHTEEN CENTS ($92.18) per single-family equivalent benefit unit in the Foothill Zone and ONE HUNDRED AND FOURTEEN DOLLARS AND THIRTY CENTS ($114.30) in the Extreme Foothill Zone for fiscal year 2022-23 per single family equivalent benefit. The estimated fiscal year 2022-23 cost of providing the Services is $307,617.

SECTION 6. The assessment to pay the costs and expenses of the fire suppression services for fiscal year 2022-23 is hereby levied.

SECTION 7. Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, this Council expressly finds and determines (a) that each of the several lots and parcels of land will be specially benefited by the fire suppression services at least in the amount if not more than the amount, of the assessment apportioned against the lots and parcels of land, respectively, and (b) that there is substantial evidence to support, and the weight of the evidence preponderates in favor of, the aforesaid finding and determination as to special benefits.

SECTION 8. Immediately upon the adoption of this resolution, but in no event later than the third Monday in August following such adoption, the City Clerk shall file a certified copy of the diagram and assessment and a certified copy of this resolution with the Auditor of the County of Santa Barbara. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments, After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the

City of Santa Barbara Wildland Fire Suppression Assessment District.

SECTION 9. Upon receipt of the moneys representing assessments collected by the County, the County shall deposit the moneys in the City Treasury to the credit of the improvement fund previously established under the distinctive designation of the Assessment District. Moneys in the improvement fund shall be expended only for the maintenance, servicing, construction or installation of the fire suppression services.

SECTION 10. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Community Development Department
SUBJECT: Coast Village Community Benefit Improvement District Resolution Of Formation And Levying Assessment
RECOMMENDATION: That Council:

A. Hold a public hearing regarding the formation of the Coast Village Community Benefit Improvement District (Coast Village CBID); and tabulate all assessment ballots returned to the City pursuant to procedures set forth in the Resolution of Intention; and
B. If the assessment balloting does not result in a majority protest, then waive first reading and adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Establishing and Forming the Coast Village Community Benefit Improvement District Pursuant to Chapter 4.45 of the Santa Barbara Municipal Code and Levying the Assessment in Connection with Such District.

EXECUTIVE SUMMARY:

On March 15, 2022, Coast Village property owners met the requirements to conduct the balloting process to form the proposed Coast Village CBID by submitting the required number of qualified petitions. A Coast Village Community Benefit Improvement District Management District Plan, certified by a qualified District Assessment Engineer, was prepared and submitted to the Santa Barbara City Clerk.

On March 29, 2022, Council adopted a Resolution of Intention (Council Resolution 22- 023) to establish the Coast Village CBID. The Resolution of Intention states that the assessment proposed to be levied and collected for Fiscal Year 2023 is $296,749. A vote of the property owner Board of Directors may increase the amount levied and collected for the subsequent years by an amount not to exceed five percent per year.

Agenda Item No. 19
File Code No. 290.00
Council Agenda Report
Coast Village Community Benefit Improvement District Resolution Of Formation And Levying Assessment
June 7, 2022

Due to the special benefit nature of assessments levied within a community benefit improvement district, program costs are distributed among all identified specially benefited properties based on the proportional amount of special program benefits each property is expected to derive from the assessments collected. The purpose of the assessments is to fund physical improvements, attract new customers, and increase business sales through maintenance, special events, marketing, and other such activities.

The methodology used for the assessment is calculated based on a given property’s linear frontage, lot size square footage, and building square footage. Future residential condominiums constructed within the District will have a separate calculation as identified in the management district plan included in this packet, in that linear frontage and lot size are not relevant to residential condominiums. A more detailed breakdown of the assessment methodology can be found in Section 4 of the Management District Plan.

DISCUSSION:

Balloting Process
Per the City’s CBID Ordinance and State Proposition 218, official ballots as well as a notice of the June 7 public hearing and a copy of the Management District Plan were mailed to affected property owners in the proposed Coast Village CBID (Attachment 1).

The City Council may establish the District and levy assessments for the Fiscal Year that begins on July 1, 2022, if, at the close of the Public Hearing, a majority of the weighted returned ballots vote in favor of the formation. Weight is determined by the dollar amount that each property owner will be paying into the proposed CBID. The owners of the largest properties (bigger buildings, greater lot size, more street frontage) located within a specific benefit zone, will be subject to paying more into the District, and will therefore have their votes count proportionally to what they will pay. A simple majority of the returned weighted ballot is required to form the CBID.

The City Council may not impose an assessment if there is a weighted majority protest.

A majority protest exists if, upon the conclusion of the Public Hearing, the weighted ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment.

If the Coast Village CBID is established, an annual assessment will be collected from each property owner through their County property tax bills beginning with the first property tax bill issued in December 2022. The total first-year assessment revenue in the proposed CBID is calculated to be $296,749.

District Boundaries
The area proposed to be the Coast Village CBID comprises approximately five to six square blocks consisting of 115 parcels owned by 94 property owners. The district will consist of two benefit zones, with boundaries generally defined as follows:

Council Agenda Report
Coast Village Community Benefit Improvement District Resolution Of Formation And Levying Assessment
June 7, 2022

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues running westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side of the street up to parcel 211-038-000.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ending at parcel 391-001-000 on the far west end of Los Palos Way.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

Eastern Boundary
The eastern boundary of the proposed CBID includes the two parcels on Olive Mill Road, parcel 760-1-10-000 and parcel 293-007-000.

Per the Management District Plan and Assessment Engineer’s Report (Attachment 2), the initial term for the CBID is five years. The term for renewal may be up to 20 years, though the plan and report provide that the CBID may be dissolved in the manner in which it was formed. It also establishes the metrics to calculate each parcel’s special assessment. There will be five factors used to determine proportional costs for the parcels in the District. These five factors are:
 Linear frontage on all sides (excluding alleys)
 Lot square footage or the footprint of the parcel
 Building square footage
 Residential condominiums that currently exist or will be constructed within the District
 Location within one of the two geographic benefit zones of the district Benefit Zones
Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest number of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Coast Village Road in the District’s core area.

Benefit Zone 2 parcels will pay anywhere from 66 percent to 75 percent of the annual assessments paid by Zone 1. This is consistent with the anticipated frequency and type of services each zone will require. The district map in the Management District Plan details the district boundaries and benefit zones.

Council Agenda Report
Coast Village Community Benefit Improvement District Resolution Of Formation And Levying Assessment
June 7, 2022

There are five general categories of services articulated in the Management District Plan, summarized as follows:

Category of Services Percentage of
Budget
1st Year
Allocation
Civil Sidewalks 40% $ 120,000
District Identity and
Placemaking
28% $ 83,000
Administration 18% $ 54,000
Capital Improvements –
Traffic Management
10% $ 30,000
Contingency/Reserve 4% $ 9,749
Total 1st Year Budget 100% $ 296,749
The Assessment Engineer’s Report elaborates on the direct link of the assessments to the services to be rendered, as required by law. The proposed distribution of revenues by service level percentages will remain in place for the life of the District unless amended by another petition and balloting process. There is a cost of living increase provision that provides for up to a five percent annual increase in rates at the discretion of the Management Board.

The Coast Village Improvement Association will be formed as a 501(c)3 organization, and will be the management organization of the Coast Village CBID. Per the proposed draft bylaws of the Coast Village Improvement Association, at least two-thirds of the Board of Directors will be owners of real property within the boundaries of the District, with the remaining one-third of the seats open to owners of businesses, residents within the District boundaries, or at-large directors. If the Coast Village CBID is formed, the City will need to enter into an administrative agreement with the Coast Village Improvement Association to ensure that the organization follows the state’s Brown Act and adheres to the Management District Plan. Staff will return to Council for authorization.

The establishment of this CBID will create an annual administrative workload responsibility for the Economic Development Manager to prepare and submit an annual property assessment statement to Santa Barbara County in order for the property assessments to be added to the property tax bills. The Coast Village CBID organization will contract with Santa Barbara County for the property assessment funds to be issued directly to the CBID organization, the City will not have any administrative role in the collection or disbursement of property assessment funds.

BUDGET/FINANCIAL IMPACT:

Approval of this resolution does not have a direct fiscal impact on the General Fund; however, if the CBID is formed, the City’s $30,000 loan of Measure C Business Corridor Council Agenda Report
Coast Village Community Benefit Improvement District Resolution Of Formation And Levying Assessment
June 7, 2022

funds to the Coast Village Association to cover the costs of the formation effort will be repaid in the first three years of the district’s formation.

ATTACHMENTS: 1. Ballot Packet

2. Coast Village Community Benefit Improvement District Management District Plan and Engineer’s Report
PREPARED BY: Jason Harris, Economic Development Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office
Record Owner Name:

Mailing Address:

City, State, Zip Code:

PROPERTY OWNER ASSESSMENT BALLOT
Proposed Coast Village Community Benefit Improvement District Mail or deliver this completed ballot to:

City Clerk
City of Santa Barbara
735 Anacapa Street
Santa Barbara, CA 93101
Mailed ballots must be received by City Clerk’s Office by: 2:00 P.M. on June 7, 2022 or may be submitted in person, no later than the close of the public input portion of such hearing, at the City Council hearing scheduled for 2:00 P.M., on Tuesday, June 3, 2022 in the Santa Barbara City Council Chambers, 735 Anacapa Street, Santa Barbara, CA 93101
To complete your ballot, mark the square before the word “YES” or before the word “NO”, sign and date the ballot, and return it to the City Clerk. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk to obtain another. Please use enclosed ballot return envelope in order to maintain the confidentiality of your ballot prior to tabulation. The returned ballot will not be opened by the City prior to the close of public testimony at the public hearing, but will be a disclosable public record during and after tabulation.

BE SURE TO SIGN YOUR BALLOT IN INK

UNSIGNED BALLOTS CANNOT BE COUNTED
This ballot represents: Name: ________________________ Owner of Record APN: _________________________
Situs Address: __________________
Proposed 2022/2023 Assessment Amount: $________*
This Assessment Amount is subject to an annual adjustment of up to five percent per year over the five year initial term of the District.
 Yes, I support the proposed five-year annual assessment against my parcel.  No, I oppose the proposed five-year annual assessment against my parcel.

I hereby declare, under penalty of perjury, that I am the record owner or authorized representative of the record owner of the parcel identified on this ballot.

Signed ____________________________________ Date _____________________________ Printed Name _______________________________
Attachment 1
Notice of Public Hearing

PROPOSED COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT 2:00 P.M.

Tuesday, June 7, 2022
Santa Barbara City Council Chambers
735 Anacapa Street
Santa Barbara, CA 93101
You are receiving this notice because you are the record owner of a parcel of real property located in the proposed Coast Village Community Benefit Improvement District (the “CBID”). The CBID, if established, would fund Civil Sidewalks, District Identity and Placemaking, Administration/Program Management, Capital Improvements/Traffic Management, and Contingency/City & County Fees/Reserve expenses that specially benefit property within the boundaries of the CBID. The CBID would be governed by the Management District Plan that is on file in the office of the City Clerk. That Plan provides that a new Coast Village CBID District Management Corporation will serve as owner’s association for the CBID.

The CBID and the Proposed Assessment
On March 29, 2022, the City Council of the City of Santa Barbara adopted a resolution stating its intention to establish the CBID. If established, an assessment would be annually levied on property located in the CBID. This assessment would generally be billed by the City on the property tax bill prepared and collected annually by Santa Barbara County. The Assessment would be collected annually for a period of five years, after which the CBID would need to be renewed, and a new assessment balloting would need to occur, in order for the assessment to continue.

In the initial year, the assessment against all properties in the CBID would total approximately $296,749. The assessment amount for your parcel is printed on the enclosed assessment ballot. That assessment was calculated on the following basis:

Property Variable Benefit Zone 1 Benefit Zone 2
Lot Size $0.10 per sq. ft. $0.06 per sq. ft.

Linear Frontage $8.00 per linear ft. $6.00 per linear ft.

Building Square Footage
Commercial Building $0.18 per sq. ft. $0.14 per sq. ft.

Residential Building $0.12 per sq. ft. $0.12 per sq. ft.

Commercial, apartment, and mixed use buildings pay the sum of the lot size, linear frontage, and building square footage rates. Residential condominiums pay only the building square footage rate. The enclosed map shows the boundaries of the two benefit zones.

CBID assessments may be used to fund the following services:

CIVIL SIDEWALKS:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the district
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the district • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) • Organization and oversight of trash collection
• Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams. • Farmers market assistance
DISTRICT IDENTITY AND PLACEMAKING:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but are not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CAPITAL IMPROVEMENTS/TRAFFIC MANAGEMENT
Examples of this category of special benefit services and costs may include, but are not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins • In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road
• Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but are not limited to:
• Delinquencies, City/County fees, reserves, capital project improvement Public Hearing
At the date, time, and place shown at the top of this notice, the City Council will hold a public hearing on the establishment of the CBID and the levy of assessments in connection with the CBID. You are invited to present oral or written testimony at the public hearing. Written testimony can be submitted at the hearing or mailed to the City Clerk at the address shown below.

Ballot Proceeding
The City is conducting an assessment ballot proceeding in connection with the formation of the CBID. An assessment ballot for your parcel is enclosed. While this notice and ballot was mailed to the record owner of the parcel as shown on the last equalized property tax rolls, the ballot may be executed and returned by any owner of the parcel. Ownership is defined as set forth in Article XIII D, Section 2(g) of the California Constitution. If an owner spoils the ballot or does not receive a ballot, or needs a replacement ballot or a proportional ballot, they should contact the City Clerk at : (805) 564-5309 or [email protected] Ballots can be mailed or otherwise delivered to the City Clerk’s Office located at 735 Anacapa Street, Santa Barbara, CA 93101. Ballots delivered to that Office must be received no later than 2:00 P.M. on June 7, 2022. Ballots can also be submitted in person at the public hearing no later than the close of the public input portion of that hearing. Note that returned ballots will not be opened by the City prior to the close of public testimony. However, during and after tabulation, all ballots are public records.

The City Council will not establish the CBID or impose the assessment if there is a majority protest. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, each ballot will be weighted by the proportional financial obligation of (ie dollar amount of the assessment against) the affected property.

Questions?
For a complete description of the proposed CBID and the proposed assessment, please refer to the Management District Plan for the District and the Resolution of intention for the CBID. These documents can be found at www.coastvillageroad.com/community-business-improvement-district-overview If you have any other questions about the CBID, please contact: Jason Harris at [email protected] or (805) 564-5306. If you have questions about the balloting process, please contact: Shirley Zawadzki at [email protected]
1 THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Final Plan – March 22nd, 2022
.

Prepared for the:

The Coast Village Association
City of Santa Barbara
Prepared by:

New City America, Inc.

Corporate Office ▪ 2011 W. California Street ▪ San Diego, CA 92110 ▪ 888 256-2726 ▪ Fax 619-239-7105 Midwest Office: 300 State Street ▪ Ste 4710 ▪ Chicago, Ill ▪ 60654 New England Office: 42 Pearl Street ▪ New Bedford, MA ▪ 02740 [email protected] ▪ www.newcityamerica.com ▪ Facebook: New City America, Inc. 2 Section Number

1. Management District Plan Summary 3

2. Coast Village CBID Boundaries 9

3. District Improvement and Activity Plan 11

4. Assessment Methodology 17

5. District Rules, Regulations and Governance 26

6. Implementation Timetable 26

7. Assessment Roll of Properties Included 27
Attachment:
a. Engineer’s Report
The Coast Village Community Benefit Improvement District 2022 Management District Plan
3 The name of this Community Benefit Improvement District (“CBID”) is the Coast Village Community Benefit Improvement District (“Coast Village CBID” or the “District”). The District is being formed under the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code Chapter 4.45).

The levy of assessments on real property within the proposed District will fund physical and maintenance and operational improvements to individual properties, with the intent to attract new customers, tenants, and increase business sales. throughout the Coast Village District.

Coast Village CBID Steering Committee
For decades, the Coast Village Association has led the effort to improve and enhance the experience and overall ambiance of working, visiting, shopping in and residing in the Coast Village district. Its efforts have paid off well but are hindered by a lack of sustainable revenue to fund the improvements as well as not having staff to oversee the short- and long-term needs of the district.

In the summer of 2020, the Coast Village Association hired New City America, a Southern California company that specializes in CBID and PBID investigations and formations, to investigate the likelihood of conceptual support for a new Coast Village District Community Benefit Improvement District. We conducted a survey to gauge support within the community for a new Special Benefit District for the Coast Village District property owners.

Priority Special Benefit Services/Survey
This past September, a survey was sent out to all the property owners in the proposed CBID area to ascertain their level of conceptual support for the services that would be funded through the establishment of a new Coast Village Improvement District (CVCBID). The survey results informed us of the priority services desired by the property owners and those special benefits have been incorporated into this plan and will be articulated in the plan as well as the Engineer’s report.

We received responses from over 50% of the property owners in the proposed district, (based upon property data in the district). In their response to the survey, the property owners prioritized the following special benefit services, among issues that property owners have had concerns about the public rights of way.
• First, the response prioritized funding marketing and promotions, social media and branding programs to attract new tenants to the district.
• Second, property owners supported funding special events such as Holiday décor, street festivals etc. to improve the identity and bring positive attention to the Coast Village district. • Third, property owners supported planting, trimming and maintenance of trees, flowers and shrubs throughout Coast Village.
• Fourth, the priority stated was to create a more orderly environment in the public rights of way, over and above what the City of Santa Barbara City staff is currently providing Section 1
Management District Plan Summary
4 Changes in Santa Barbara’s Coast Village District
The investigation of a new Coast Village District CBID centered on these 5 questions:

1. How to fund the programs that will make the Coast Village District brand become more positive in Southern California.

2. How to create greater demand for Coast Village District’s buildings resulting in greater rental rates and commerce to businesses and tenants, particularly in light of the devasting impact of the COVID 19 pandemic.

3. How to drive more tenants to the buildings in the Coast Village District and attract more customers and visitors to rebuild the retail and restaurant sectors here.

4. How to ensure that the public rights of way will become more beautiful, and attractive and promote the culture and history of the Coast Village District.

5. How to fund and sustain the improvements needed to provide adequate lighting and landscaping as well as mitigation of the 101-realignment project and its impact on Coast Village Road and its businesses.

How can a new CBID benefit property owners in Coast Village District? In summary, a Coast Village CBID is a Special Benefits Assessment District allowable in the state constitution that allows for the levy of assessments on benefitting property owners with the purpose of funding special benefit services that convey these benefits to the property owners within the proposed district boundaries. The special benefit services to be funded through this plan include responded to:
• Sidewalk cleanliness
• Increase the trimming and replacement of damaging trees and landscaping • Install/improve decorative amenities such as street furniture/fixtures/equipment/lighting • Promote and enhance the brand/image of Coast Village
• Manage events at in and around the district
• Create a strong social media presence, and facilitate public relations for Coast Village businesses
• Provide parking directional services and other mobility related activities • Promote public space development and placemaking

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage, on all sides of the parcel (excluding alleys) • Lot size or the footprint of the parcel
• Building square footage
5 • Current and future residential condominiums that will be constructed within the District • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated benefit with the current land uses:

1. Residential condominiums will be assessed for their specific parcel building square footage only.

2. All private, public and tax-exempt owned and operated parcels will be assessed for linear frontage, building square footage and lot size

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District.

The data that was obtained from Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Broken down by benefit zone:

Zones Building
Square Feet
Lot
Square Feet
Linear
Frontage
Residential
Condos/Apt
1 394,680 sq. ft 1,063,657 sq. ft. 8,085 linear feet 157,322 sq. ft. 2 70,155 sq. ft. 238,747 sq. ft. 1,842 linear feet 4,868 sq. ft.

Total 464,835 sq. ft 1,302,404 sq. ft 9,927 linear feet 162,190 sq. ft.

Boundaries:

The following description summarizes the two different Benefit Zones within the proposed Coast Village Community Benefit Improvement District. Both of the Benefit Zones are predominantly geographically based, In general, the Benefit Zone boundaries are proposed as follows:

Zone 1. Core Area: on the east side, commencing at Olive Mill Road and heading westward including parcels on both sides of the Coast Village Road between the 101 Freeway on the south and Hot Springs Road on the west. Parcels facing the 101 freeway with no frontage along Coast Village Road will instead be included in Benefit Zone 2 assessment rates since they will not receive the same benefit as parcels fronting directly onto Coast Village Road. 6 Zone 2: Peripheral area: on the far west side of the district on the south side of the 101-freeway beginning at Cabrillo Road on the east and ending at parcel # 391-001-000 on the west, which include those parcels north of Highway 101 which do not front along Coast Village Road.

Costs:

The costs per parcel are based upon the five factors listed on Page 7 above. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district along Coast Village Road, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received.

Proposed First Year Coast Village District CBID Budget - 2022 Category of Services Percentage of
budget
1st Year
Allocation
Civil Sidewalks 40% $ 120,000
District Identity and Placemaking 28% $ 83,000
Administration 18% $ 54,000
Capital Improvements – Traffic
Management
10% $ 30,000
Contingency/Reserve 4% $ 9,749
Total 1st year Budget 100% $ 296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square
Footage $0.18 per square foot
$0.14 per square
foot
Commercial Lot Size $0.10 per square foot
$0.06 per square
foot
Commercial Linear Frontage $8.00 per linear foot
$6.00 per linear
foot
Residential Condos Building
Square Footage $0.12 per square foot
$0.12 per square
foot
Residential apartments
(Residential apartments and
mixed-use developments will
pay for Benefit Zone 1 lot size
and linear frontage costs in
addition to the reduced building
square footage costs.)
$0.12 per square
foot.
$0.10 per square foot
of lot size;
$8.00 per linear foot
$0.12 per square
foot; $0.10 per
square foot of
lot size;
$8.00 per linear
foot
7 Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid over the first three years of the formation of the district.

Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in Land Use
Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

District Formation
Under the local enabling ordinance, District formation requires a submission of petitions from property owners in the proposed district representing more than 30% of the total assessments to be paid into the CBID. Once the City verifies the petitions totaling a minimum of 30%, ($89,025) of the first-year annual budget which is projected to be $296,749.00 in assessments in the District, the Santa Barbara City Council may adopt a Resolution of Intention to mail out ballots to all affected property owners. The City will then hold a public hearing and tabulate the ballots. The Coast Village CBID will be formed if the weighted majority of all returned mail ballots support District formation and if the City Council adopts a Resolution of Formation to levy the assessments on the benefiting parcels. The date for that public hearing has not been scheduled but is assumed that it will be held in late March 2022, based upon the successful completion of the petition drive.

Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period.

Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. 8 Public and Tax-Exempt Parcels
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.

Governance
Pursuant to Section 36650 of the California Streets and Highway Code, an Owners’ Association will report on District budgets and policies annually to the Santa Barbara City Council. The Management Corporation, which will be under contract with the City of Santa Barbara, must file Annual Reports with the City as the Owners Association will oversee the day-to-day implementation of services as defined in the Management District Plan.
“Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway. Code § 36612.)
An existing or new public benefit non-profit corporation (501c3) will be established once the district has been approved by the property owners and it will serve in the capacity of the Owners Association. The current Coast Village Road Association seeks to become a new public benefit, non-profit corporation and will therefore create a successor organization, serving as the Owners Association, to administer the district under contract with the City.

Disestablishment
Under the local enabling ordinance, the Coast Village CBID property owners will have an annual period in which to submit petitions to the City Council to disestablish the CBID. If the property owners vote by weighted majority to disestablish the District, assessments will be removed from the parcels the following fiscal year. Unexpended surplus funds will be returned to property owners based upon a parcel’s percentage contribution to the previous fiscal year’s assessments. This disestablishment procedure is articulated in both the Santa Barbara City Municipal Code, Section 4.45.100 as well as the California Streets and Highway Code, Section 36670.
9 Boundaries
The proposed Coast Village CBID consists of approximately 5 to 6 square blocks consisting of 115 parcels owned by 94 property owners. See the Coast Village proposed CBID map in Section 2, page 17.

Benefit Zones
The District consists of two benefit zones.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues running westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side of the street up to parcel 211-038-000.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

Summation
A list of all parcels included in the proposed Coast Village CBID are shown as Appendix 1, attached to this report identified by their respective Santa Barbara County assessor parcel numbers. The boundary of the proposed Coast Village CBID is shown on the map to be found on pages 17 of this report. All identified assessed parcels within the above- described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Management District Plan. All Coast Village CBID funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District.

Section 2
Boundaries
10 11
Explanation of Special Benefit Services
All of the improvements and activities detailed below are provided only to properties within the boundaries of the Coast Village CBID, as the improvements and activities will provide special benefits to the owners of these properties.

The City will continue to provide general benefit services from the general fund in the Coast Village District which will include public safety programs, street sweeping, tree trimming, roadwork repairs, sidewalk repair, trash collection of public refuse containers, etc. The frequency of these general benefits may change from year to year and time to time based upon budget constraints. However, City general benefits will not be withdrawn from Coast Village District unless they are withdrawn by an equal frequency City wide. The CBID funded special benefits will not replace City funded general benefits, but rather will provide special benefits to parcel owners over and above the general benefits provided by the City of Santa Barbara.

All services funded by the assessments outlined in the Management District Plan are intended to specifically benefit the properties within the District to support increased commerce, business attraction and retention, to retain and increase commercial property rentals, attract new residential developments, enhance safety and cleanliness in the District, improve District identity, and eventually fund specialized beautification and enhanced services for the property owners, businesses, visitors and residents within the District.

Special Benefit Budget Category Analysis
This Plan gives property owners greater flexibility in determining the type and frequency of special benefit services that will be allocated on a year-to-year basis. As Santa Barbara’s Coast Village District evolves, services that are needed one year may not be needed the next. Therefore, “bundles” or categories of special benefit funding have been created and divided into five broad categories – Civil Sidewalks, District Identity and Placemaking, Capital Improvements/Traffic Management, Administration and Contingency. The bundles are allocated funding percentages with the flexibility to prioritize or minimize a service within each bundle.

The bundles or categories of services and their percentages represent the service plan the Coast Village District property owners will be voting on when the Coast Village District CBID comes up for a mail ballot later in the Winter of 2022.

The proposed “bundles” of special benefit services are listed below and are supplemental to current City services.

CIVIL SIDEWALKS:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the district
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the district • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) • Organization and oversight of trash collection
Section 3
District Improvement and Activity Plan
12 • Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams. • Farmers market assistance
DISTRICT IDENTITY AND PLACEMAKING:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

ADMINISTRATION/PROGRAM MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CAPITAL IMPROVEMENTS/TRAFFIC MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins • In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road
• Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves, capital project improvements

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments upon real properties 13 that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII (d) of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage on all sides (excluding alleys)
• Lot square footage or the footprint of the parcel
• Building square footage.
• Residential condominiums that currently exist or will be constructed within the District. • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated based upon the current land uses:

1. Residential condominiums will be assessed for their actual parcel building square footage only.

2. All public and tax-exempt owned and operated parcels will be assessed similarly to other parcels based upon their location in their Benefit Zone.

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District. The data that was obtained by Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Data broken down by benefit zone:

Benefit
Zone
Building Square
Footage Lot Square Footage
Linear
Frontage
Residential
Condos/Apt
1 394,680
sq. ft
1,063,657
sq ft
8,085
linear
feet
157,322
sq ft.
2 70,155
sq. ft.
238,747
sq ft
1,842
linear
feet
4,868
Total 464,835
sq. ft
1,302,404
sq. ft
9,927
linear
feet
162,190
sq. ft
Costs
The costs per parcel are based upon the five factors listed on page 18. The Benefit Zones are determined 14 by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received so we have agreed upon the following Benefit Zones.

Proposed First Year Coast Village District CBID Budget
Category of Services
Percentage
of Budget 1st Year Allocation
Civil Sidewalks * 40% $120,000
District Identity and
Placemaking 28% $83,000
Administration 18% $54,000
Capital Improvements –
Traffic Management 10% $30,000
Contingency/Reserve 4% $9,749
Total 1st year Budget 100% $296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square Footage $0.18 per square foot $0.14 per square foot Commercial Lot Size $0.10 per square foot $0.06 per square foot Commercial Linear Frontage $8.00 per linear foot $6.00 per linear foot Residential Condos Building Square
Footage $0.12 per square foot $0.12 per square foot
Residential apartments (Residential
apartments and mixed-use
developments will pay for Benefit Zone
1 lot size and linear frontage costs in
addition to the reduced building square
footage costs.)
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to 15 cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid in the first three years of the formation of the district.

Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

Operating Budget
A projected operating budget, based upon the local enabling ordinance, has an initial 5 - year term and may be renewed for up to 20 years more. New City America has listed the maximum percentage of allowable annual increases based upon the current data within the district, with the following assumptions:

Assessments may be subject to annual increase, based upon the action of the new Owners Association corporation Board, not to exceed 5% per year.

Changes in land use, demolition of existing buildings, and new development will occur and will change the improvements to that parcel, normally due to redevelopment of the site and the addition of new building square footage which shall be assessed based upon the provisions laid out in this Management Plan.

The budget for specific programs may be reallocated within each budget category by up to 10% during the term of the District. The Management Corporation Board may alter the budget based upon service needs and such changes shall be included in the Annual report and submitted to the Santa Barbara City Council for review and approval.

Five-Year Projection of Maximum Assessment for the Coast Village CBID 16 Civil Sidewalks DISI Admin
Capital
Improvements/
Traffic
Management
Contingency TOTAL
Y1 $ 120,000.00 $ 83,000.00 $ 54,000.00 $ 30,000.00 $ 9,749.00 $ 296,749.00 Y2 $ 126,000.00 $ 87,150.00 $ 56,700.00 $ 31,500.00 $ 10,236.45 $ 311,586.45 Y3 $ 132,300.00 $ 91,507.50 $ 59,535.00 $ 33,075.00 $ 10,748.27 $ 327,165.77 Y4 $ 138,915.00 $ 96,082.88 $ 62,511.75 $ 34,728.75 $ 11,285.69 $ 343,524.06 Y5 $ 145,860.75 $ 100,887.02 $ 65,637.34 $ 36,465.19 $ 11,849.97 $ 360,700.26 Notes:
• Assumes a possible 5% maximum yearly increase on all budget items, if approved annually by the District Management Corporation Board of Directors
• Any accrued interest or delinquent payments will be expended in the above categories. 17 The proposed Coast Village CBID is a property-based special benefit assessment district being established pursuant to the Santa Barbara local enabling ordinance as well as Section 36600 of the California Streets and Highway Code.

The state constitution refers to the requirement that benefits received from CBID funded programs and activities be used to determine the amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be received.

General vs. Special Benefits
As provided by Proposition 218, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. “Special Benefit” as defined by the California State Constitution, Article XIII (d), means “a particular and distinct benefit over and above general benefits conferred on real property located in the District or to the public at large.” For the purposes of this analysis, “General Benefits” are benefits provided within Coast Village District that are not special in nature, are not "particular and distinct" and are not over and above the benefits that other city parcels receive.

General benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. “At large” means not limited to any particular person – and means all members of the public - including those who live, work, and shop within the district - and not simply transient visitors.

The property uses within the boundaries of the proposed Coast Village CBID which will receive special benefits from CBID funded programs and services are currently a mix of retail, service, office, mixed use, residential, public visitor related, cultural and parking. Services, programs and improvements provided by the Coast Village CBID are primarily designed to provide special benefits to identified parcels within the boundaries of the District.

Parcels that derive benefit from the special benefit programs, services, activities and improvements outlined in this Management District Plan will attract more customers, employees, tenants and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales transactions, occupancies, and rental income, and for future residents, make Coast Village District more walkable, attractive and livable. These benefits are particular and distinct in that they are not provided to nonassessed parcels within or outside of the District. Because these programs, services and improvements will only be provided to each individual
Section 4
Assessment Methodology
18 assessed parcel within the Coast Village CBID boundaries, these programs, services and improvements will constitute "special benefits.”
Existing City of Santa Barbara services will not be replaced or duplicated by the Coast Village CBID funded services. The purpose of this District is to fund supplemental programs, improvements and services within the Coast Village District boundaries beyond what is being currently funded either via normal tax supported methods or other funding sources. The assessments to be levied on parcels within the Coast Village CBID are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased commercial property rental income and improved District identity. No CBID funded services, activities or programs will be provided beyond the Coast Village District CBID boundaries.

While every attempt is made to provide CBID services and programs to confer benefits only to those identified assessed parcels within the District, the California State Constitution, Article XIII (d), was amended via Proposition 218 to provide that general benefits exist, either by design or unintentionally, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the District, or “spillover” onto parcels surrounding the District, or to the public at large who might be passing through the District with no intention of transacting business or residing within the District or interest in the District itself. Empirical assessment engineering analysis throughout California has found that general benefits within a given similar special benefit district tend to range from 1-5% of the total costs.

There are three methods that have been used by the Coast Village CBID Assessment Engineer for determining general and special benefit values within assessment districts:
(1) The parcel-by-parcel allocation method
(2) The program/activity line-item allocation method, and (3) The composite district overlay determinant method.

A majority of PBIDs and CBIDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which will be used for this CBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the District, general benefit to the public at large within the District and general benefit to parcels outside the District.

Coast Village CBID Programs and Improvements
The total special and general benefit program activities and budget allocations that will be provided to each individual parcel assessed in the proposed Coast Village CBID are shown in the chart below:
19 Total Year 1 – 2022 Special + General Benefit Costs
Table 4-A
Category of Special
Benefit Services
Year 1
Annual Amount
(assessments to
fund special
benefits)
Year 1
Non-Assessment
Costs (general
benefits ratio)
Year 1
Total Costs
(special and
general benefits) % Of Total
Civil Sidewalks $120,000 $2,449 $122,449 40%
District Identity
/Placemaking $83,000 $1,694 $84,694 28%
Administration $54,000 $1,102 $55,102 18%
Capital
Improvements,
Traffic
Management
$30,000 $614 $30,614 10%
Contingency $9,749 $197 $9,946 4%
Total $296,749 $6,056 $ 302,805.00 100%
All program costs associated with general benefits will be derived from sources or credits other than CBID assessments. Sample “other” revenue sources can be derived from special events, grants, volunteer hours and must simply equal a total of $6,056 per year which would equal the general benefit cost of 2% of the computed total CBID cost of $302,805 from the table above. Here, program costs are spread among property variables that are common to each parcel include linear frontage, lot or parcel size and building square footage, and residential condominium parcels and benefit zone. Assessed valuation cannot be used as the basis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations. We must therefore spread the assessments among the consistent factors of each parcel, based upon 2021 data.

Assessable Data in the Coast Village CBID Table 4-B
Benefit Zone Building
Sq. Ft.

Lot SF Linear frontage Residential Condo/Apt.
1 394,680 1,063,657 8,085 157,322
2 70,155 238,747 1,842 4,868
Total 464,835 1,302,404 9,927 162,190
20 Assessment District Revenue Generation in Fiscal Year 2022 from Each Assessable Property Variable:

Table 4 - C
Property Variable
Total
Revenue Generated Percent of Budget
Building Sq. Ft. $80,864 27%
Lot Sq. Ft. $120,690 41%
Linear Frontage $75,732 25%
Residential Condos Bldg. Sq. Ft. $19,463 7%
Total $296,749 100%
Annual Costs per property variable and Benefit Zone, first year, FY 2022 Table 4 – D
Property Variable Benefit Zone 1 Benefit Zone 2
Building Square Footage $0.18 $0.14
Lot size $0.10 $0.06
Linear Frontage $8.00 $6.00
Residential Condos
Building Square Foot
$0.12 $0.12
Residential apartments, mixed use
developments
$0.12 $0.12
Explanation of Costs
Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Coast Village Road in the core area of the District. Benefit Zone 1 properties are the historic core of Santa Barbara’s Coast Village District dating back almost 60 years built around Coast Village Road. Zone 1 properties include retail, restaurants, residential, office, hotel and residential condominiums and apartments. These parcels will benefit the most from the CBID special benefit services, therefore their assessments have been set to fund the costs of services to these parcels.

The higher costs assessed to Benefit Zone 1 parcels are based upon:
• 6 to 7 day per week services, particularly for cleaning and beautification services. • Benefit Zone 1 parcels are predominantly retail, visitor related, service and pedestrian oriented therefore they will need civil sidewalk special benefit services daily, particularly on the weekends.

Holiday traffic will also necessitate cleaning services. • Traffic control during the Highway 101 reconstruction will also impact Coast Village Road, Benefit Zone 1 properties, more than the Benefit Zone 2 properties. • District identity services will also be proportionally higher and confer special benefit services relative to Benefit Zone 2 parcels. Special events will be held in Benefit Zone 1, thereby benefitting property owners and their tenants there, no special events will probably be held in Zone 2. • Benefit Zone 2 parcels have completely different land uses. Their stated desire for special benefit services includes those that are primarily found in Civil Sidewalk services. • Benefit Zone 2 parcels will need regular public rights of way cleaning and landscaping services 3 - 5 days per week compared to Zone 1 parcels which will need similar services daily. 21 The assessment costs of Benefit Zone 1 versus Benefit Zone 2 costs result in Benefit Zone 2 parcels paying anywhere from 66% to 75% per cent of the Zone 1 annual assessments. This is consistent with the anticipated frequency and type of services each Zone will require.

Benefit Zone 2 parcels include the parcels that are not fronting on Coast Village Road but rather front along Highway 101, including the far western parcels of the business district that are to be found just south of Highway 101. The land uses of Benefit Zone 2 parcels are office, retail, residential, and related parking uses.

The costs in Benefit Zone 2 are lower than that of Benefit Zone 1 due to the lack of density in this portion of the district and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties along Coast Village Road.

Linear Frontage Defined
Individual parcels will be assessed for all sides of each parcel fronting on a public street. Alley frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Civil Sidewalks special benefit services. The linear front footage data was obtained from the County Assessor’s parcel maps.

Building Square Footage Defined
Building square footage is defined as gross building square footage throughout the Coast Village CBID.

Lot Square Footage Defined
Lot square footage is defined as the total amount of area within the borders of the parcel. The lot square footage of a parcel has been verified by the County Assessor’s parcel maps.

Commercial Condominium (non-residential portion of mixed-use buildings) - Parcels Defined Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building.

Ground floor commercial condominiums will pay 100% of the special benefits for the assessment, based upon which benefit zone they are within.

Residential Condominium Unit Parcels Defined
Residential condominium units building square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the Coast Village CBID. Unlike the other commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Current and future residential condominium parcels are assessed as a separate category. These residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.12 per square foot per year for the first year of the CBID, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the building square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and property owner have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future residential apartment buildings can be bought or 22 sold just as like commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e., ownership rights), as opposed to renters who only have a possessory interest.

2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners and have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to current and future residential condominium individual assessed parcels since residential condominium owners have expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the improvement or the maintenance and operation expenses of an improvement or for the cost of property service being provided. Per California Constitution Article XIII D, Section 2(i), “Special Benefit,” means a and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost of the proportional special benefits conferred upon that parcel. Only special benefits are assessable, and these benefits must be separated from any general benefits. Properties are assessed as defined on the County Assessor’s most current parcel maps. The preceding methodology is applied to the database of parcels within the District. The process for compiling the property database includes the following steps:

A report was generated from data obtained from the Santa Barbara County Tax Assessors office.

A list of properties to be included within the District is provided in Section 7. 23 First Year (2022) Parcel Assessment Calculation:

The annual assessment method to calculate all parcels for Benefit Zone 1 will be:

Total Linear Frontage X $8.00 per foot
+
Total Building Square Footage X $0.18 per sq. ft. or $0.12 per sq. ft. for Mixed Use Apartments Total Lot Size x 0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all commercial parcels for Benefit Zone 2 will be:

Total Linear Frontage x $6.00 per square foot
+
Total Building Square Footage X $0.14 per square foot
+
Total Lot Size x $0.06 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all parcels for Mixed Use residential parcels in Zone 1 and 2 will be:

Total Linear Frontage x 8.00 per square foot
+
Total Building Square Footage X $0.12 per square foot
+
Total Lot Size x $0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate the residential condominiums throughout the district will be:

Total Residential Condo Building Square Footage X $0.12 per square foot =

TOTAL PARCEL ASSESSMENT
24 Future Development
As a result of continued new development, the Coast Village CBID will experience the addition or subtraction of assessable commercial and residential buildings or the conversion of vacant parcels into new commercial and residential units. The Management District Plan assessment methodology will reflect any and all land use changes in the District with annual adjustments being submitted to the City, as these assessment calculation and property variable alterations occur. Therefore, parcels will be assessed each year based upon their then-current characteristics.

Maximum Assessment
Assessments may be subject to annual increases not to exceed 5% per year. Increases will be determined by the CBID District Management Corporation and will vary between 0% and 5% in any given year. The maximum the assessments may be increased is 5% over the previous fiscal year’s base assessments. The absence of increase in any given year does not give the District Management Corporation the authority to accumulate increases above 5% in any successive year. The following projections illustrate a potential 5% annual increase.

Maximum Assessments by Property Variable
Table 4 – E
Projected Assessments- Benefit Zone 1
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft.

Residential
Condo/Apt.

Bldg.

Sq. Ft.

Y1 $ 0.100 $ 8.000 $ 0.180 $ 0.120
Y2 $ 0.105 $ 8.400 $ 0.189 $ 0.126
Y3 $ 0.110 $ 8.820 $ 0.198 $ 0.132
Y4 $ 0.116 $ 9.261 $ 0.208 $ 0.139
Y5 $ 0.122 $ 9.724 $ 0.219 $ 0.146
Projected Assessments- Benefit Zone 2
Lot Sq. Ft Linear Frontage Non-Mixed Use
Bldg. Sq. Ft.

Residential
Condo/Apt Bldg.

Sq. Ft.

Y1 $ 0.10 $ 8.00 $ 0.140 $ 0.120
Y2 $ 0.630 $ 6.300 $ 0.147 $ 0.126
Y3 $ 0.662 $ 6.615 $ 0.154 $ 0.132
Y4 $ 0.695 $ 6.946 $ 0.162 $ 0.139
Y5 $ 0.729 $ 7.293 $ 0.170 $ 0.146
Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period. 25 Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. directly to the CBID property owners in late 2021 or early 2022 to fund the services outlined in this plan.

Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year’s budget. Assessments will be set annually. Revenues from delinquent accounts may be expended in the year they are received.

Disestablishment
California Streets and Highways Code section 36670 as well as the local CBD enabling ordinance provides for the disestablishment of a District. Provisions for annual disestablishment of the District are provided for in the local enabling ordinance. Property owners dissatisfied with the results, management or quality of the services may petition the City Council to disestablish the District, in the same method in which they petitioned the City Council to establish it. The same petition threshold needed to establish the District will also be needed to trigger a disestablishment of the District on an annual basis.

Section 36670 of the State Streets and Highway Code states:
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

Unexpended surplus funds will be returned to property owners based upon each property owner’s percentage contribution to the previous fiscal year’s assessments.

Government Assessments
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.
26 There are no specific rules and regulations prescribed for the proposed Coast Village Community Benefit Improvement District Management Corporation except that it will adhere to the open meeting and open records provisions of the Public Records Act. Under the Ralph M. Brown Act the Owners Association will seek to be as open and transparent to the CBID assessees and the public at large as is reasonably possible.

A new Coast Village CBID District Management Corporation (501c3), will be established once the district has been formed and shall serve in the capacity of the Owners Association consistent with State Statute and the local enabling ordinance.

The Coast Village CBID is expected to be established and begin assessing benefiting parcels as of the fourth quarter of calendar year 2022. The delivery of services is scheduled to commence in or around the winter of 2023.

Section 5
District Rules and Regulations and Governance
Section 6
Implementation Timetable
27 Annual
Assessment
009-211-012 $4,208.30
009-211-013 $6,035.10
009-211-014 $4,805.52
009-211-035 $3,209.52
009-211-038 $5,472.20
009-211-040 $13,901.38
009-211-043 $17,088.54
009-212-012 $2,350.60
009-212-013 $989.60
009-221-006 $6,828.02
009-222-010 $7,820.44
009-222-011 $4,783.32
009-222-025 $19,556.02
009-222-027 $11,692.76
009-230-001 $3,490.32
009-230-002 $6,188.90
009-230-031 $2,005.90
009-230-032 $1,331.24
009-230-035 $3,795.20
009-230-037 $8,648.30
009-230-038 $2,664.98
009-281-003 $5,538.90
009-291-001 $4,039.16
009-291-002 $2,564.60
009-291-003 $3,220.00
009-291-004 $3,224.00
009-291-005 $4,697.06
009-291-007 $7,739.00
009-291-008 $10,946.80
009-291-009 $2,751.86
009-291-010 $2,088.14
009-291-011 $1,188.40
009-291-012 $2,063.60
009-291-013 $7,546.86
009-291-019 $2,469.52
009-291-023 $5,907.86
009-291-025 $1,249.44
009-291-027 $939.90
009-291-029 $3,539.20
009-291-034 $4,278.90
009-291-035 $4,332.92
009-291-036 $4,479.24
009-291-037 $4,682.70
009-293-001 $3,147.28
009-293-002 $2,652.70
009-293-005 $2,768.24
009-293-006 $2,098.08
009-293-007 $16,907.38
009-530-001 $145.08
009-530-002 $145.08
009-530-003 $145.08
009-530-004 $125.64
009-530-005 $129.24
009-530-006 $149.64
009-530-007 $157.56
009-530-008 $139.80
009-530-009 $143.76
009-530-010 $155.16
009-530-011 $147.60
009-530-012 $145.08
009-540-001 $145.08
009-540-002 $145.08
009-540-003 $145.08
009-540-004 $125.64
009-540-005 $129.24
009-540-006 $145.08
009-540-007 $162.72
009-540-008 $141.72
009-540-009 $143.76
009-540-010 $155.16
009-540-011 $147.60
009-540-012 $145.08
009-540-013 $145.08
009-550-001 $145.08
009-550-002 $145.08
009-550-003 $145.08
009-550-004 $125.64
009-550-005 $129.24
009-550-006 $145.08
009-550-007 $162.72
009-550-008 $141.72
009-550-009 $143.76
009-550-010 $155.16
009-550-011 $147.60
009-550-012 $145.08
009-550-013 $145.08
009-730-001 $788.98
009-730-002 $1,861.22
009-730-003 $1,500.40
009-730-004 $1,111.20
009-730-005 $0.00
009-740-001 $213.60
Section 7
Assessment Roll of Properties Included
28 009-740-002 $257.28
009-740-003 $1,003.92
009-740-004 $521.08
009-740-005 $488.12
009-740-006 $889.28
009-740-007 $236.88
009-740-008 $235.76
009-740-009 $254.52
009-740-010 $2,169.90
009-760-001 $378.36
009-760-002 $356.28
009-760-003 $284.16
009-760-004 $374.28
009-760-005 $447.00
009-760-006 $496.00
009-760-007 $421.12
009-760-008 $585.00
009-760-009 $768.36
009-760-010 $2,485.50
017-391-001 $3,821.86
017-391-002 $1,323.66
017-391-003 $2,049.92
017-391-008 $12,016.52
29 1

THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Final Plan – March 22nd, 2022
.

Prepared for the:

The Coast Village Association
City of Santa Barbara
Prepared by:

New City America, Inc.

Corporate Office ▪ 2011 W. California Street ▪ San Diego, CA 92110 ▪ 888 256-2726 ▪ Fax 619-239-7105 Midwest Office: 300 State Street ▪ Ste 4710 ▪ Chicago, Ill ▪ 60654 New England Office: 42 Pearl Street ▪ New Bedford, MA ▪ 02740 [email protected] ▪ www.newcityamerica.com ▪ Facebook: New City America, Inc.

Attachment 2
2 Section Number

1. Management District Plan Summary 3

2. Coast Village CBID Boundaries 9

3. District Improvement and Activity Plan 11

4. Assessment Methodology 17

5. District Rules, Regulations and Governance 26

6. Implementation Timetable 26

7. Assessment Roll of Properties Included 27
Attachment:
a. Engineer’s Report
The Coast Village Community Benefit Improvement District 2022 Management District Plan
3 The name of this Community Benefit Improvement District (“CBID”) is the Coast Village Community Benefit Improvement District (“Coast Village CBID” or the “District”). The District is being formed under the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code Chapter 4.45).

The levy of assessments on real property within the proposed District will fund physical and maintenance and operational improvements to individual properties, with the intent to attract new customers, tenants, and increase business sales. throughout the Coast Village District.

Coast Village CBID Steering Committee
For decades, the Coast Village Association has led the effort to improve and enhance the experience and overall ambiance of working, visiting, shopping in and residing in the Coast Village district. Its efforts have paid off well but are hindered by a lack of sustainable revenue to fund the improvements as well as not having staff to oversee the short- and long-term needs of the district.

In the summer of 2020, the Coast Village Association hired New City America, a Southern California company that specializes in CBID and PBID investigations and formations, to investigate the likelihood of conceptual support for a new Coast Village District Community Benefit Improvement District. We conducted a survey to gauge support within the community for a new Special Benefit District for the Coast Village District property owners.

Priority Special Benefit Services/Survey
This past September, a survey was sent out to all the property owners in the proposed CBID area to ascertain their level of conceptual support for the services that would be funded through the establishment of a new Coast Village Improvement District (CVCBID). The survey results informed us of the priority services desired by the property owners and those special benefits have been incorporated into this plan and will be articulated in the plan as well as the Engineer’s report.

We received responses from over 50% of the property owners in the proposed district, (based upon property data in the district). In their response to the survey, the property owners prioritized the following special benefit services, among issues that property owners have had concerns about the public rights of way.
• First, the response prioritized funding marketing and promotions, social media and branding programs to attract new tenants to the district.
• Second, property owners supported funding special events such as Holiday décor, street festivals etc. to improve the identity and bring positive attention to the Coast Village district. • Third, property owners supported planting, trimming and maintenance of trees, flowers and shrubs throughout Coast Village.
• Fourth, the priority stated was to create a more orderly environment in the public rights of way, over and above what the City of Santa Barbara City staff is currently providing Section 1
Management District Plan Summary
4 Changes in Santa Barbara’s Coast Village District
The investigation of a new Coast Village District CBID centered on these 5 questions:

1. How to fund the programs that will make the Coast Village District brand become more positive in Southern California.

2. How to create greater demand for Coast Village District’s buildings resulting in greater rental rates and commerce to businesses and tenants, particularly in light of the devasting impact of the COVID 19 pandemic.

3. How to drive more tenants to the buildings in the Coast Village District and attract more customers and visitors to rebuild the retail and restaurant sectors here.

4. How to ensure that the public rights of way will become more beautiful, and attractive and promote the culture and history of the Coast Village District.

5. How to fund and sustain the improvements needed to provide adequate lighting and landscaping as well as mitigation of the 101-realignment project and its impact on Coast Village Road and its businesses.

How can a new CBID benefit property owners in Coast Village District? In summary, a Coast Village CBID is a Special Benefits Assessment District allowable in the state constitution that allows for the levy of assessments on benefitting property owners with the purpose of funding special benefit services that convey these benefits to the property owners within the proposed district boundaries. The special benefit services to be funded through this plan include responded to:
• Sidewalk cleanliness
• Increase the trimming and replacement of damaging trees and landscaping • Install/improve decorative amenities such as street furniture/fixtures/equipment/lighting • Promote and enhance the brand/image of Coast Village
• Manage events at in and around the district
• Create a strong social media presence, and facilitate public relations for Coast Village businesses
• Provide parking directional services and other mobility related activities • Promote public space development and placemaking

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage, on all sides of the parcel (excluding alleys) • Lot size or the footprint of the parcel
• Building square footage
5 • Current and future residential condominiums that will be constructed within the District • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated benefit with the current land uses:

1. Residential condominiums will be assessed for their specific parcel building square footage only.

2. All private, public and tax-exempt owned and operated parcels will be assessed for linear frontage, building square footage and lot size

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District.

The data that was obtained from Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Broken down by benefit zone:

Zones Building
Square Feet
Lot
Square Feet
Linear
Frontage
Residential
Condos/Apt
1 394,680 sq. ft 1,063,657 sq. ft. 8,085 linear feet 157,322 sq. ft. 2 70,155 sq. ft. 238,747 sq. ft. 1,842 linear feet 4,868 sq. ft.

Total 464,835 sq. ft 1,302,404 sq. ft 9,927 linear feet 162,190 sq. ft.

Boundaries:

The following description summarizes the two different Benefit Zones within the proposed Coast Village Community Benefit Improvement District. Both of the Benefit Zones are predominantly geographically based, In general, the Benefit Zone boundaries are proposed as follows:

Zone 1. Core Area: on the east side, commencing at Olive Mill Road and heading westward including parcels on both sides of the Coast Village Road between the 101 Freeway on the south and Hot Springs Road on the west. Parcels facing the 101 freeway with no frontage along Coast Village Road will instead be included in Benefit Zone 2 assessment rates since they will not receive the same benefit as parcels fronting directly onto Coast Village Road. 6 Zone 2: Peripheral area: on the far west side of the district on the south side of the 101-freeway beginning at Cabrillo Road on the east and ending at parcel # 391-001-000 on the west, which include those parcels north of Highway 101 which do not front along Coast Village Road.

Costs:

The costs per parcel are based upon the five factors listed on Page 7 above. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district along Coast Village Road, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received.

Proposed First Year Coast Village District CBID Budget - 2022 Category of Services Percentage of
budget
1st Year
Allocation
Civil Sidewalks 40% $ 120,000
District Identity and Placemaking 28% $ 83,000
Administration 18% $ 54,000
Capital Improvements – Traffic
Management
10% $ 30,000
Contingency/Reserve 4% $ 9,749
Total 1st year Budget 100% $ 296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square
Footage $0.18 per square foot
$0.14 per square
foot
Commercial Lot Size $0.10 per square foot
$0.06 per square
foot
Commercial Linear Frontage $8.00 per linear foot
$6.00 per linear
foot
Residential Condos Building
Square Footage $0.12 per square foot
$0.12 per square
foot
Residential apartments
(Residential apartments and
mixed-use developments will
pay for Benefit Zone 1 lot size
and linear frontage costs in
addition to the reduced building
square footage costs.)
$0.12 per square
foot.
$0.10 per square foot
of lot size;
$8.00 per linear foot
$0.12 per square
foot; $0.10 per
square foot of
lot size;
$8.00 per linear
foot
7 Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid over the first three years of the formation of the district.

Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in Land Use
Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

District Formation
Under the local enabling ordinance, District formation requires a submission of petitions from property owners in the proposed district representing more than 30% of the total assessments to be paid into the CBID. Once the City verifies the petitions totaling a minimum of 30%, ($89,025) of the first-year annual budget which is projected to be $296,749.00 in assessments in the District, the Santa Barbara City Council may adopt a Resolution of Intention to mail out ballots to all affected property owners. The City will then hold a public hearing and tabulate the ballots. The Coast Village CBID will be formed if the weighted majority of all returned mail ballots support District formation and if the City Council adopts a Resolution of Formation to levy the assessments on the benefiting parcels. The date for that public hearing has not been scheduled but is assumed that it will be held in late March 2022, based upon the successful completion of the petition drive.

Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period.

Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. 8 Public and Tax-Exempt Parcels
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.

Governance
Pursuant to Section 36650 of the California Streets and Highway Code, an Owners’ Association will report on District budgets and policies annually to the Santa Barbara City Council. The Management Corporation, which will be under contract with the City of Santa Barbara, must file Annual Reports with the City as the Owners Association will oversee the day-to-day implementation of services as defined in the Management District Plan.
“Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway. Code § 36612.)
An existing or new public benefit non-profit corporation (501c3) will be established once the district has been approved by the property owners and it will serve in the capacity of the Owners Association. The current Coast Village Road Association seeks to become a new public benefit, non-profit corporation and will therefore create a successor organization, serving as the Owners Association, to administer the district under contract with the City.

Disestablishment
Under the local enabling ordinance, the Coast Village CBID property owners will have an annual period in which to submit petitions to the City Council to disestablish the CBID. If the property owners vote by weighted majority to disestablish the District, assessments will be removed from the parcels the following fiscal year. Unexpended surplus funds will be returned to property owners based upon a parcel’s percentage contribution to the previous fiscal year’s assessments. This disestablishment procedure is articulated in both the Santa Barbara City Municipal Code, Section 4.45.100 as well as the California Streets and Highway Code, Section 36670.
9 Boundaries
The proposed Coast Village CBID consists of approximately 5 to 6 square blocks consisting of 115 parcels owned by 94 property owners. See the Coast Village proposed CBID map in Section 2, page 17.

Benefit Zones
The District consists of two benefit zones.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues running westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side of the street up to parcel 211-038-000.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

Summation
A list of all parcels included in the proposed Coast Village CBID are shown as Appendix 1, attached to this report identified by their respective Santa Barbara County assessor parcel numbers. The boundary of the proposed Coast Village CBID is shown on the map to be found on pages 17 of this report. All identified assessed parcels within the above- described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Management District Plan. All Coast Village CBID funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District.

Section 2
Boundaries
10 11
Explanation of Special Benefit Services
All of the improvements and activities detailed below are provided only to properties within the boundaries of the Coast Village CBID, as the improvements and activities will provide special benefits to the owners of these properties.

The City will continue to provide general benefit services from the general fund in the Coast Village District which will include public safety programs, street sweeping, tree trimming, roadwork repairs, sidewalk repair, trash collection of public refuse containers, etc. The frequency of these general benefits may change from year to year and time to time based upon budget constraints. However, City general benefits will not be withdrawn from Coast Village District unless they are withdrawn by an equal frequency City wide. The CBID funded special benefits will not replace City funded general benefits, but rather will provide special benefits to parcel owners over and above the general benefits provided by the City of Santa Barbara.

All services funded by the assessments outlined in the Management District Plan are intended to specifically benefit the properties within the District to support increased commerce, business attraction and retention, to retain and increase commercial property rentals, attract new residential developments, enhance safety and cleanliness in the District, improve District identity, and eventually fund specialized beautification and enhanced services for the property owners, businesses, visitors and residents within the District.

Special Benefit Budget Category Analysis
This Plan gives property owners greater flexibility in determining the type and frequency of special benefit services that will be allocated on a year-to-year basis. As Santa Barbara’s Coast Village District evolves, services that are needed one year may not be needed the next. Therefore, “bundles” or categories of special benefit funding have been created and divided into five broad categories – Civil Sidewalks, District Identity and Placemaking, Capital Improvements/Traffic Management, Administration and Contingency. The bundles are allocated funding percentages with the flexibility to prioritize or minimize a service within each bundle.

The bundles or categories of services and their percentages represent the service plan the Coast Village District property owners will be voting on when the Coast Village District CBID comes up for a mail ballot later in the Winter of 2022.

The proposed “bundles” of special benefit services are listed below and are supplemental to current City services.

CIVIL SIDEWALKS:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the district
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the district • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) • Organization and oversight of trash collection
Section 3
District Improvement and Activity Plan
12 • Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams. • Farmers market assistance
DISTRICT IDENTITY AND PLACEMAKING:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

ADMINISTRATION/PROGRAM MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CAPITAL IMPROVEMENTS/TRAFFIC MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins • In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road
• Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves, capital project improvements

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments upon real properties 13 that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII (d) of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage on all sides (excluding alleys)
• Lot square footage or the footprint of the parcel
• Building square footage.
• Residential condominiums that currently exist or will be constructed within the District. • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated based upon the current land uses:

1. Residential condominiums will be assessed for their actual parcel building square footage only.

2. All public and tax-exempt owned and operated parcels will be assessed similarly to other parcels based upon their location in their Benefit Zone.

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District. The data that was obtained by Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Data broken down by benefit zone:

Benefit
Zone
Building Square
Footage Lot Square Footage
Linear
Frontage
Residential
Condos/Apt
1 394,680
sq. ft
1,063,657
sq ft
8,085
linear
feet
157,322
sq ft.
2 70,155
sq. ft.
238,747
sq ft
1,842
linear
feet
4,868
Total 464,835
sq. ft
1,302,404
sq. ft
9,927
linear
feet
162,190
sq. ft
Costs
The costs per parcel are based upon the five factors listed on page 18. The Benefit Zones are determined 14 by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received so we have agreed upon the following Benefit Zones.

Proposed First Year Coast Village District CBID Budget
Category of Services
Percentage
of Budget 1st Year Allocation
Civil Sidewalks * 40% $120,000
District Identity and
Placemaking 28% $83,000
Administration 18% $54,000
Capital Improvements –
Traffic Management 10% $30,000
Contingency/Reserve 4% $9,749
Total 1st year Budget 100% $296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square Footage $0.18 per square foot $0.14 per square foot Commercial Lot Size $0.10 per square foot $0.06 per square foot Commercial Linear Frontage $8.00 per linear foot $6.00 per linear foot Residential Condos Building Square
Footage $0.12 per square foot $0.12 per square foot
Residential apartments (Residential
apartments and mixed-use
developments will pay for Benefit Zone
1 lot size and linear frontage costs in
addition to the reduced building square
footage costs.)
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to 15 cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid in the first three years of the formation of the district.

Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

Operating Budget
A projected operating budget, based upon the local enabling ordinance, has an initial 5 - year term and may be renewed for up to 20 years more. New City America has listed the maximum percentage of allowable annual increases based upon the current data within the district, with the following assumptions:

Assessments may be subject to annual increase, based upon the action of the new Owners Association corporation Board, not to exceed 5% per year.

Changes in land use, demolition of existing buildings, and new development will occur and will change the improvements to that parcel, normally due to redevelopment of the site and the addition of new building square footage which shall be assessed based upon the provisions laid out in this Management Plan.

The budget for specific programs may be reallocated within each budget category by up to 10% during the term of the District. The Management Corporation Board may alter the budget based upon service needs and such changes shall be included in the Annual report and submitted to the Santa Barbara City Council for review and approval.

Five-Year Projection of Maximum Assessment for the Coast Village CBID 16 Civil Sidewalks DISI Admin
Capital
Improvements/
Traffic
Management
Contingency TOTAL
Y1 $ 120,000.00 $ 83,000.00 $ 54,000.00 $ 30,000.00 $ 9,749.00 $ 296,749.00 Y2 $ 126,000.00 $ 87,150.00 $ 56,700.00 $ 31,500.00 $ 10,236.45 $ 311,586.45 Y3 $ 132,300.00 $ 91,507.50 $ 59,535.00 $ 33,075.00 $ 10,748.27 $ 327,165.77 Y4 $ 138,915.00 $ 96,082.88 $ 62,511.75 $ 34,728.75 $ 11,285.69 $ 343,524.06 Y5 $ 145,860.75 $ 100,887.02 $ 65,637.34 $ 36,465.19 $ 11,849.97 $ 360,700.26 Notes:
• Assumes a possible 5% maximum yearly increase on all budget items, if approved annually by the District Management Corporation Board of Directors
• Any accrued interest or delinquent payments will be expended in the above categories. 17 The proposed Coast Village CBID is a property-based special benefit assessment district being established pursuant to the Santa Barbara local enabling ordinance as well as Section 36600 of the California Streets and Highway Code.

The state constitution refers to the requirement that benefits received from CBID funded programs and activities be used to determine the amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be received.

General vs. Special Benefits
As provided by Proposition 218, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. “Special Benefit” as defined by the California State Constitution, Article XIII (d), means “a particular and distinct benefit over and above general benefits conferred on real property located in the District or to the public at large.” For the purposes of this analysis, “General Benefits” are benefits provided within Coast Village District that are not special in nature, are not "particular and distinct" and are not over and above the benefits that other city parcels receive.

General benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. “At large” means not limited to any particular person – and means all members of the public - including those who live, work, and shop within the district - and not simply transient visitors.

The property uses within the boundaries of the proposed Coast Village CBID which will receive special benefits from CBID funded programs and services are currently a mix of retail, service, office, mixed use, residential, public visitor related, cultural and parking. Services, programs and improvements provided by the Coast Village CBID are primarily designed to provide special benefits to identified parcels within the boundaries of the District.

Parcels that derive benefit from the special benefit programs, services, activities and improvements outlined in this Management District Plan will attract more customers, employees, tenants and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales transactions, occupancies, and rental income, and for future residents, make Coast Village District more walkable, attractive and livable. These benefits are particular and distinct in that they are not provided to nonassessed parcels within or outside of the District. Because these programs, services and improvements will only be provided to each individual
Section 4
Assessment Methodology
18 assessed parcel within the Coast Village CBID boundaries, these programs, services and improvements will constitute "special benefits.”
Existing City of Santa Barbara services will not be replaced or duplicated by the Coast Village CBID funded services. The purpose of this District is to fund supplemental programs, improvements and services within the Coast Village District boundaries beyond what is being currently funded either via normal tax supported methods or other funding sources. The assessments to be levied on parcels within the Coast Village CBID are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased commercial property rental income and improved District identity. No CBID funded services, activities or programs will be provided beyond the Coast Village District CBID boundaries.

While every attempt is made to provide CBID services and programs to confer benefits only to those identified assessed parcels within the District, the California State Constitution, Article XIII (d), was amended via Proposition 218 to provide that general benefits exist, either by design or unintentionally, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the District, or “spillover” onto parcels surrounding the District, or to the public at large who might be passing through the District with no intention of transacting business or residing within the District or interest in the District itself. Empirical assessment engineering analysis throughout California has found that general benefits within a given similar special benefit district tend to range from 1-5% of the total costs.

There are three methods that have been used by the Coast Village CBID Assessment Engineer for determining general and special benefit values within assessment districts:
(1) The parcel-by-parcel allocation method
(2) The program/activity line-item allocation method, and (3) The composite district overlay determinant method.

A majority of PBIDs and CBIDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which will be used for this CBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the District, general benefit to the public at large within the District and general benefit to parcels outside the District.

Coast Village CBID Programs and Improvements
The total special and general benefit program activities and budget allocations that will be provided to each individual parcel assessed in the proposed Coast Village CBID are shown in the chart below:
19 Total Year 1 – 2022 Special + General Benefit Costs
Table 4-A
Category of Special
Benefit Services
Year 1
Annual Amount
(assessments to
fund special
benefits)
Year 1
Non-Assessment
Costs (general
benefits ratio)
Year 1
Total Costs
(special and
general benefits) % Of Total
Civil Sidewalks $120,000 $2,449 $122,449 40%
District Identity
/Placemaking $83,000 $1,694 $84,694 28%
Administration $54,000 $1,102 $55,102 18%
Capital
Improvements,
Traffic
Management
$30,000 $614 $30,614 10%
Contingency $9,749 $197 $9,946 4%
Total $296,749 $6,056 $ 302,805.00 100%
All program costs associated with general benefits will be derived from sources or credits other than CBID assessments. Sample “other” revenue sources can be derived from special events, grants, volunteer hours and must simply equal a total of $6,056 per year which would equal the general benefit cost of 2% of the computed total CBID cost of $302,805 from the table above. Here, program costs are spread among property variables that are common to each parcel include linear frontage, lot or parcel size and building square footage, and residential condominium parcels and benefit zone. Assessed valuation cannot be used as the basis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations. We must therefore spread the assessments among the consistent factors of each parcel, based upon 2021 data.

Assessable Data in the Coast Village CBID Table 4-B
Benefit Zone Building
Sq. Ft.

Lot SF Linear frontage Residential Condo/Apt.
1 394,680 1,063,657 8,085 157,322
2 70,155 238,747 1,842 4,868
Total 464,835 1,302,404 9,927 162,190
20 Assessment District Revenue Generation in Fiscal Year 2022 from Each Assessable Property Variable:

Table 4 - C
Property Variable
Total
Revenue Generated Percent of Budget
Building Sq. Ft. $80,864 27%
Lot Sq. Ft. $120,690 41%
Linear Frontage $75,732 25%
Residential Condos Bldg. Sq. Ft. $19,463 7%
Total $296,749 100%
Annual Costs per property variable and Benefit Zone, first year, FY 2022 Table 4 – D
Property Variable Benefit Zone 1 Benefit Zone 2
Building Square Footage $0.18 $0.14
Lot size $0.10 $0.06
Linear Frontage $8.00 $6.00
Residential Condos
Building Square Foot
$0.12 $0.12
Residential apartments, mixed use
developments
$0.12 $0.12
Explanation of Costs
Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Coast Village Road in the core area of the District. Benefit Zone 1 properties are the historic core of Santa Barbara’s Coast Village District dating back almost 60 years built around Coast Village Road. Zone 1 properties include retail, restaurants, residential, office, hotel and residential condominiums and apartments. These parcels will benefit the most from the CBID special benefit services, therefore their assessments have been set to fund the costs of services to these parcels.

The higher costs assessed to Benefit Zone 1 parcels are based upon:
• 6 to 7 day per week services, particularly for cleaning and beautification services. • Benefit Zone 1 parcels are predominantly retail, visitor related, service and pedestrian oriented therefore they will need civil sidewalk special benefit services daily, particularly on the weekends.

Holiday traffic will also necessitate cleaning services. • Traffic control during the Highway 101 reconstruction will also impact Coast Village Road, Benefit Zone 1 properties, more than the Benefit Zone 2 properties. • District identity services will also be proportionally higher and confer special benefit services relative to Benefit Zone 2 parcels. Special events will be held in Benefit Zone 1, thereby benefitting property owners and their tenants there, no special events will probably be held in Zone 2. • Benefit Zone 2 parcels have completely different land uses. Their stated desire for special benefit services includes those that are primarily found in Civil Sidewalk services. • Benefit Zone 2 parcels will need regular public rights of way cleaning and landscaping services 3 - 5 days per week compared to Zone 1 parcels which will need similar services daily. 21 The assessment costs of Benefit Zone 1 versus Benefit Zone 2 costs result in Benefit Zone 2 parcels paying anywhere from 66% to 75% per cent of the Zone 1 annual assessments. This is consistent with the anticipated frequency and type of services each Zone will require.

Benefit Zone 2 parcels include the parcels that are not fronting on Coast Village Road but rather front along Highway 101, including the far western parcels of the business district that are to be found just south of Highway 101. The land uses of Benefit Zone 2 parcels are office, retail, residential, and related parking uses.

The costs in Benefit Zone 2 are lower than that of Benefit Zone 1 due to the lack of density in this portion of the district and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties along Coast Village Road.

Linear Frontage Defined
Individual parcels will be assessed for all sides of each parcel fronting on a public street. Alley frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Civil Sidewalks special benefit services. The linear front footage data was obtained from the County Assessor’s parcel maps.

Building Square Footage Defined
Building square footage is defined as gross building square footage throughout the Coast Village CBID.

Lot Square Footage Defined
Lot square footage is defined as the total amount of area within the borders of the parcel. The lot square footage of a parcel has been verified by the County Assessor’s parcel maps.

Commercial Condominium (non-residential portion of mixed-use buildings) - Parcels Defined Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building.

Ground floor commercial condominiums will pay 100% of the special benefits for the assessment, based upon which benefit zone they are within.

Residential Condominium Unit Parcels Defined
Residential condominium units building square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the Coast Village CBID. Unlike the other commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Current and future residential condominium parcels are assessed as a separate category. These residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.12 per square foot per year for the first year of the CBID, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the building square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and property owner have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future residential apartment buildings can be bought or 22 sold just as like commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e., ownership rights), as opposed to renters who only have a possessory interest.

2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners and have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to current and future residential condominium individual assessed parcels since residential condominium owners have expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the improvement or the maintenance and operation expenses of an improvement or for the cost of property service being provided. Per California Constitution Article XIII D, Section 2(i), “Special Benefit,” means a and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost of the proportional special benefits conferred upon that parcel. Only special benefits are assessable, and these benefits must be separated from any general benefits. Properties are assessed as defined on the County Assessor’s most current parcel maps. The preceding methodology is applied to the database of parcels within the District. The process for compiling the property database includes the following steps:

A report was generated from data obtained from the Santa Barbara County Tax Assessors office.

A list of properties to be included within the District is provided in Section 7. 23 First Year (2022) Parcel Assessment Calculation:

The annual assessment method to calculate all parcels for Benefit Zone 1 will be:

Total Linear Frontage X $8.00 per foot
+
Total Building Square Footage X $0.18 per sq. ft. or $0.12 per sq. ft. for Mixed Use Apartments Total Lot Size x 0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all commercial parcels for Benefit Zone 2 will be:

Total Linear Frontage x $6.00 per square foot
+
Total Building Square Footage X $0.14 per square foot
+
Total Lot Size x $0.06 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all parcels for Mixed Use residential parcels in Zone 1 and 2 will be:

Total Linear Frontage x 8.00 per square foot
+
Total Building Square Footage X $0.12 per square foot
+
Total Lot Size x $0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate the residential condominiums throughout the district will be:

Total Residential Condo Building Square Footage X $0.12 per square foot =

TOTAL PARCEL ASSESSMENT
24 Future Development
As a result of continued new development, the Coast Village CBID will experience the addition or subtraction of assessable commercial and residential buildings or the conversion of vacant parcels into new commercial and residential units. The Management District Plan assessment methodology will reflect any and all land use changes in the District with annual adjustments being submitted to the City, as these assessment calculation and property variable alterations occur. Therefore, parcels will be assessed each year based upon their then-current characteristics.

Maximum Assessment
Assessments may be subject to annual increases not to exceed 5% per year. Increases will be determined by the CBID District Management Corporation and will vary between 0% and 5% in any given year. The maximum the assessments may be increased is 5% over the previous fiscal year’s base assessments. The absence of increase in any given year does not give the District Management Corporation the authority to accumulate increases above 5% in any successive year. The following projections illustrate a potential 5% annual increase.

Maximum Assessments by Property Variable
Table 4 – E
Projected Assessments- Benefit Zone 1
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft.

Residential
Condo/Apt.

Bldg.

Sq. Ft.

Y1 $ 0.100 $ 8.000 $ 0.180 $ 0.120
Y2 $ 0.105 $ 8.400 $ 0.189 $ 0.126
Y3 $ 0.110 $ 8.820 $ 0.198 $ 0.132
Y4 $ 0.116 $ 9.261 $ 0.208 $ 0.139
Y5 $ 0.122 $ 9.724 $ 0.219 $ 0.146
Projected Assessments- Benefit Zone 2
Lot Sq. Ft Linear Frontage Non-Mixed Use
Bldg. Sq. Ft.

Residential
Condo/Apt Bldg.

Sq. Ft.

Y1 $ 0.10 $ 8.00 $ 0.140 $ 0.120
Y2 $ 0.630 $ 6.300 $ 0.147 $ 0.126
Y3 $ 0.662 $ 6.615 $ 0.154 $ 0.132
Y4 $ 0.695 $ 6.946 $ 0.162 $ 0.139
Y5 $ 0.729 $ 7.293 $ 0.170 $ 0.146
Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period. 25 Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. directly to the CBID property owners in late 2021 or early 2022 to fund the services outlined in this plan.

Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year’s budget. Assessments will be set annually. Revenues from delinquent accounts may be expended in the year they are received.

Disestablishment
California Streets and Highways Code section 36670 as well as the local CBD enabling ordinance provides for the disestablishment of a District. Provisions for annual disestablishment of the District are provided for in the local enabling ordinance. Property owners dissatisfied with the results, management or quality of the services may petition the City Council to disestablish the District, in the same method in which they petitioned the City Council to establish it. The same petition threshold needed to establish the District will also be needed to trigger a disestablishment of the District on an annual basis.

Section 36670 of the State Streets and Highway Code states:
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

Unexpended surplus funds will be returned to property owners based upon each property owner’s percentage contribution to the previous fiscal year’s assessments.

Government Assessments
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.
26 There are no specific rules and regulations prescribed for the proposed Coast Village Community Benefit Improvement District Management Corporation except that it will adhere to the open meeting and open records provisions of the Public Records Act. Under the Ralph M. Brown Act the Owners Association will seek to be as open and transparent to the CBID assessees and the public at large as is reasonably possible.

A new Coast Village CBID District Management Corporation (501c3), will be established once the district has been formed and shall serve in the capacity of the Owners Association consistent with State Statute and the local enabling ordinance.

The Coast Village CBID is expected to be established and begin assessing benefiting parcels as of the fourth quarter of calendar year 2022. The delivery of services is scheduled to commence in or around the winter of 2023.

Section 5
District Rules and Regulations and Governance
Section 6
Implementation Timetable
27 Annual
Assessment
009-211-012 $4,208.30
009-211-013 $6,035.10
009-211-014 $4,805.52
009-211-035 $3,209.52
009-211-038 $5,472.20
009-211-040 $13,901.38
009-211-043 $17,088.54
009-212-012 $2,350.60
009-212-013 $989.60
009-221-006 $6,828.02
009-222-010 $7,820.44
009-222-011 $4,783.32
009-222-025 $19,556.02
009-222-027 $11,692.76
009-230-001 $3,490.32
009-230-002 $6,188.90
009-230-031 $2,005.90
009-230-032 $1,331.24
009-230-035 $3,795.20
009-230-037 $8,648.30
009-230-038 $2,664.98
009-281-003 $5,538.90
009-291-001 $4,039.16
009-291-002 $2,564.60
009-291-003 $3,220.00
009-291-004 $3,224.00
009-291-005 $4,697.06
009-291-007 $7,739.00
009-291-008 $10,946.80
009-291-009 $2,751.86
009-291-010 $2,088.14
009-291-011 $1,188.40
009-291-012 $2,063.60
009-291-013 $7,546.86
009-291-019 $2,469.52
009-291-023 $5,907.86
009-291-025 $1,249.44
009-291-027 $939.90
009-291-029 $3,539.20
009-291-034 $4,278.90
009-291-035 $4,332.92
009-291-036 $4,479.24
009-291-037 $4,682.70
009-293-001 $3,147.28
009-293-002 $2,652.70
009-293-005 $2,768.24
009-293-006 $2,098.08
009-293-007 $16,907.38
009-530-001 $145.08
009-530-002 $145.08
009-530-003 $145.08
009-530-004 $125.64
009-530-005 $129.24
009-530-006 $149.64
009-530-007 $157.56
009-530-008 $139.80
009-530-009 $143.76
009-530-010 $155.16
009-530-011 $147.60
009-530-012 $145.08
009-540-001 $145.08
009-540-002 $145.08
009-540-003 $145.08
009-540-004 $125.64
009-540-005 $129.24
009-540-006 $145.08
009-540-007 $162.72
009-540-008 $141.72
009-540-009 $143.76
009-540-010 $155.16
009-540-011 $147.60
009-540-012 $145.08
009-540-013 $145.08
009-550-001 $145.08
009-550-002 $145.08
009-550-003 $145.08
009-550-004 $125.64
009-550-005 $129.24
009-550-006 $145.08
009-550-007 $162.72
009-550-008 $141.72
009-550-009 $143.76
009-550-010 $155.16
009-550-011 $147.60
009-550-012 $145.08
009-550-013 $145.08
009-730-001 $788.98
009-730-002 $1,861.22
009-730-003 $1,500.40
009-730-004 $1,111.20
009-730-005 $0.00
009-740-001 $213.60
Section 7
Assessment Roll of Properties Included
28 009-740-002 $257.28
009-740-003 $1,003.92
009-740-004 $521.08
009-740-005 $488.12
009-740-006 $889.28
009-740-007 $236.88
009-740-008 $235.76
009-740-009 $254.52
009-740-010 $2,169.90
009-760-001 $378.36
009-760-002 $356.28
009-760-003 $284.16
009-760-004 $374.28
009-760-005 $447.00
009-760-006 $496.00
009-760-007 $421.12
009-760-008 $585.00
009-760-009 $768.36
009-760-010 $2,485.50
017-391-001 $3,821.86
017-391-002 $1,323.66
017-391-003 $2,049.92
017-391-008 $12,016.52
29 0

THE COAST VILLAGE

COMMUNITY BENEFIT IMPROVEMENT DISTRICT
ASSESSMENT ENGINEER’S
REPORT
Being established pursuant to the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code - Chapter 4.45)
Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates
February 6, 2022
v 3.0
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
1 ASSESSMENT ENGINEER’S REPORT
To Whom It May Concern:

I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Coast Village Community Benefit Improvement District ("CVCBID") being established for a five (5) year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property.

Introduction
This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution to support the benefit property assessments to be levied within the proposed CVCBID in the City of Santa Barbara, California being established for a five (5) year term. The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits derived by real properties within the proposed CVCBID.

February 6, 2022
3/31/22
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
2 Background
The CVCBID is a is a property-based benefit assessment type district being established for a five (5) year term pursuant to the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code - Chapter 4.45. The Ordinance was modeled after Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 (the “Act”). Due to the benefit assessment nature of assessments levied within a community benefit improvement district (“CBID”), district program costs are to be distributed amongst all identified benefiting properties based on the proportionate amount of special program benefit each property is projected to derive from the assessments levied. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportionate to the special benefits expected to be conferred on each assessed property.

Supplemental Article XIIID Section 4(b) California Constitution Procedures and Requirements
Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the CVCBID. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution (hereinafter Article XIIID).

Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the CVCBID, these supplemental requirements will be taken into account. The key provisions of Article XIIID along with a description of how the CVCBID complies with each of these provisions are delineated below.
(Note: All section references below pertain to Article XIII D of the California Constitution):

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
3 Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed”
Boundaries
The proposed CVCBID consists of 5-6 commercial blocks centered primarily along Coast Village Road generally between Olive Mill Road on the east and US Highway 101/just west of Cabrillo Boulevard on the west. The CVCBID includes 115 parcels owned by 94 property owners. See the CVCBID map in Appendix 2 of this Report.

The CVCBID is generally bounded by:
• On the south: bounded by the 101 freeway which runs on the south side of the CVCBID for most of Benefit Zone 1 properties and borders the north side of the CVCBID for the remaining Benefit Zone 2 properties.

• On the north: in general, the northern boundary of CVCBID is represented by the northern parcel lines for all of the parcels fronting along Coast Village Road. • On the west: The parcels included in Benefit Zone 2 ending at parcel 391-001-000 at the far end of the west side of the CVCBID.
• On the east: at Olive Mill Road or the entrance to the CVCBID from Highway 101.

Benefit Zones
The CVCBID consists of two benefit zones. Benefit Zone 1 properties front along Coast Village Road.

Parcels that front along both Highway 101 to the south side of in the core area will be classified as Zone 2 parcels, along with those parcels forming the western portion of the District, which are just south of the 101.

CVCBID Boundary Rationale
The CVCBID boundaries are comprised of parcels that showcase an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side to parcel 211-038-000.

The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided north of the northern CVCBID boundary.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
4 The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided west of the western CVCBID boundary.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided south of the southern CVCBID boundary.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided east of the eastern CVCBID boundary.

All identified parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Plan and in this Assessment Engineer’s Report. All CVCBID funded services, programs and improvements provided within the above described boundaries shall confer special benefit to identified assessed parcels inside the CVCBID boundaries and none will be provided outside of the CVCBID. Each assessed parcel within the CVCBID will proportionately specially benefit from the CVCBID funded Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve as described in more detail under “Work Plan”, beginning on page 11 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents and commercial/residential occupancy rates of parcels and businesses within the CVCBID by improving safety, reducing litter and debris and professionally marketing goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district. All CVCBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of assessed parcels within the boundaries of the CVCBID.

A list of all parcels included in the proposed CVCBID is shown as Appendix 1, attached to this Report with their respective Santa Barbara County assessor parcel number. The boundary of the proposed CVCBID and parcels within it are shown on the map of the CVCBID attached as Appendix 2 to this Report.
.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
5 Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “

QUANTITATIVE BENEFIT ANALYSIS
As stipulated in Article XIIID, assessment district programs and activities confer a combination of general and special benefits, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special benefit” as defined by the Article XIIID means a distinct benefit over and above general benefits conferred on real property located in the district.

The property uses within the boundaries of the CVCBID that will receive special benefits from CVCBID funded programs and services are currently an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums.

No parcels within the CVCBID are zoned solely residential. Services, programs and improvements provided and funded by the CVCBID are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the CVCBID.

The proposed CVCBID programs, improvements and services and Year 1 budget allocation are as follows:

Year 1 - CVCBID Special Benefit Cost Allocations (Assessment Revenue Only)

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 40.4382% 27.9698% 18.1972% 10.1096% 3.2853% 100%
1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967 87.9418% 2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782 12.0582% TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749 100.00% Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all CVCBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, CVCBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, safety and aesthetic appeal for patrons, visitors and employees of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the array of goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district.

For residential parcels and residential portions of mixed-use parcels within the CVCBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit, but differently than commercial type parcels, from CVCBID funded programs and services which are designed to improve the cleanliness, safety, marketability and livability of these parcels COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
6 and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the CVCBID. For these parcels, CVCBID programs, services and improvements are designed to increase residential rental occupancies and income. These programs, services and improvements are designed to improve safety and aesthetic appeal for tenants, visitors and landlords of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the availability of residential rental units within the CVCBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

These benefits are particular and distinct to each and every identified and assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

In the case of the CVCBID, the very nature of the purpose of this CBID is to fund supplemental programs, services and improvements to assessed parcels within the CVCBID boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the CVCBID are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the CVCBID. No CVCBID funded services, activities or programs will be provided outside of the CVCBID boundaries.

While every attempt is made to provide CVCBID services and programs to confer special benefits only to those identified assessed parcels within the CVCBID, Article XIIID stipulates that general benefits exist either by design or unintentional in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues.

Empirical assessment engineering analysis throughout California has found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for the CVCBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the CVCBID, general benefit to the public at large within the CVCBID and general benefit to parcels outside the CVCBID.
.

General Benefit – Assessed Parcels within the CVCBID
CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 115 parcels within the CVCBID are distinct and special but in the case of the CVCBID, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the CVCBID funded programs and services are specially geared to the unique needs of each parcel within the CVCBID and are directed specially only to these parcels within the CVCBID. This concept is further reinforced by COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
7 the proportionality of special benefits conferred on each parcel within the CVCBID as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 115 parcels within the CVCBID equates to $748 or (.25% x $296,749).

General Benefits – Outside Parcels
While CVCBID programs and services will not be provided directly to parcels outside the CVCBID boundaries, it is reasonable to conclude that CVCBID services may confer an indirect general benefit on parcels adjacent to the CVCBID boundaries. An inventory of the CVCBID boundaries finds that the CVCBID is immediately surrounded by 35 parcels. Of these 35 parcels, 2 are commercial zoned parcels with commercial uses, 30 are residentially zoned parcels with residential uses and 3 are publicly owned parcels with public uses.

The 35 parcels directly outside the CVCBID boundaries can reasonably be assumed to receive some indirect general benefit as a result of CVCBID funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 115 parcels within the CVCBID, a benefit factor of 0.05 be attributed to general benefits conferred on the 2 commercial parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID, a benefit factor of 0.01 be attributed to general benefits conferred on the 30 residential parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID and, a benefit factor of 0.01 be attributed to general benefits conferred on the 3 publicly owned parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID.

The cumulative dollar value of this general benefit type equates to $1,109 ($258 + $77 + $774) as delineated in the following Table:

Parcel Type Quantity Benefit
Factor
Benefit
Units
Benefit
Percent
Benefit
Value
Parcels within CVCBD 115 1.000 115.00 99.6275% $296,749 Commercial parcels outside of CVCBD 2 0.050 0.10 0.0866% $258 Public parcels outside of CVCBD 3 0.010 0.03 0.0260% $77 Residential use parcels outside of CVCBD 30 0.010 0.30 0.2599% $774 TOTAL 115.43 100.00% $297,859
General Benefit - Public At Large
While the CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID, these programs also provide general benefits to the public at large within the CVCBID.

For CBID type activities, assessment Engineering experience in California has found that generally over 95% of people moving about within CBID boundaries are engaged in business related to assessed parcels and businesses contained on them within a CBID, while the public at large “just passing through” is typically 5% or less.

Based on experience curves and the nature of the proposed CVCBID funded programs and over 30 years of assessment engineering experience, it is the opinion of this Engineer that districtwide general benefit factors for each of the CVCBID funded special benefit program element costs that most likely provide a COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
8 general benefit to the public at large are as shown in the Table below. These factors are applied to each program element costs in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $3,284 as delineated in the following Table:

A B C E
Program Element Dollar
Allocation
General
Benefit
Percent
General
Benefit
Factor
General Benefit
Value (A x C)
CIVIL SIDEWALKS $120,000 2.00% 0.020 $2,400
DISTRICT IDENTITY & PLACEMAKING $83,000 0.50% 0.005 $415 CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $30,000 0.50% 0.005 $150 ADMINISTRATION & PROGRAM MANAGEMENT $54,000 0.50% 0.005 $270 CONTINGENCY & RESERVE $9,749 0.50% 0.005 $49
TOTAL $296,749 $3,284
Composite General Benefit
Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the CVCBID, on parcels outside the CVCBID, and on the public at large, equates to $5,135 ($742 + $1,109 + $3,284) or 1.701%. For the purposes of this analysis, the districtwide general benefit factor of 1.701% will be rounded up to 2% or $6,056. This leaves a value of 98% assigned to special benefit related costs. The districtwide general benefit value of $6,056 when added to the special benefit value of $296,749 (Year 1 assessments) equates to a total Year 1 program cost of $302,805. Remaining costs that are attributed to districtwide general benefits, will need to be derived from other non-assessment sources.

The program special benefit related cost allocations of the CVCBID assessment revenues for Year 1 are shown in the Table on page 14 of this Report. The projected program special benefit related cost allocations of the CVCBID assessment revenues for the 5-year CVCBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

A breakdown of projected special and districtwide general benefits for each year of the 5-year term, assuming a 5% maximum annual assessment rate increase is shown in the following Table:
5-year Special + Districtwide General Benefits
(Assumes 5% max rate increase per year)

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 1 1 CIVIL SIDEWALKS $105,530 $2,154 $107,684 40.4382% DISTRICT IDENTITY & PLACEMAKING $72,992 $1,490 $74,482 27.9698% ADMINISTRATION & PROGRAM MANAGEMENT $47,489 $969 $48,458 18.1972% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $26,383 $538 $26,921 10.1096% CONTINGENCY & RESERVE $8,573 $175 $8,748 3.2853%
SUBTOTAL $260,967 $5,326 $266,293 100%
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
9 2 CIVIL SIDEWALKS $14,470 $295 $14,765 40.4382%
DISTRICT IDENTITY & PLACEMAKING $10,008 $204 $10,212 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $6,511 $133 $6,644 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $3,617 $74 $3,691 10.1096% CONTINGENCY & RESERVE $1,176 $24 $1,200 3.2853%
SUBTOTAL $35,782 $730 $36,512 100%
1&2 CIVIL SIDEWALKS $120,000 $2,449 $122,449 40.4382%
DISTRICT IDENTITY & PLACEMAKING $83,000 $1,694 $84,694 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $54,000 $1,102 $55,102 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $30,000 $612 $30,612 10.1096% CONTINGENCY & RESERVE $9,749 $199 $9,948 3.2853%
TOTAL YEAR 1 $296,749 $6,056 $302,805 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 2 1 CIVIL SIDEWALKS $110,807 $2,262 $113,069 40.4382% DISTRICT IDENTITY & PLACEMAKING $76,642 $1,565 $78,207 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $49,863 $1,017 $50,880 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $27,702 $565 $28,267 10.1096% CONTINGENCY & RESERVE $9,002 $184 $9,186 3.2853%
SUBTOTAL $274,016 $5,593 $279,609 100%
2 CIVIL SIDEWALKS $15,194 $310 $15,504 40.4382%
DISTRICT IDENTITY & PLACEMAKING $10,508 $214 $10,722 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $6,837 $140 $6,977 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $3,798 $78 $3,876 10.1096% CONTINGENCY & RESERVE $1,235 $25 $1,260 3.2853%
SUBTOTAL $37,572 $767 $38,339 100%
1&2 CIVIL SIDEWALKS $126,001 $2,572 $128,573 40.4382%
DISTRICT IDENTITY & PLACEMAKING $87,150 $1,779 $88,929 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $56,700 $1,157 $57,857 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $31,500 $643 $32,143 10.1096% CONTINGENCY & RESERVE $10,237 $209 $10,446 3.2853%
TOTAL YEAR 2 - 2023 $311,588 $6,360 $317,948 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 3 1 CIVIL SIDEWALKS $116,347 $2,375 $118,722 40.4382% DISTRICT IDENTITY & PLACEMAKING $80,474 $1,643 $82,117 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $52,356 $1,068 $53,424 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $29,087 $593 $29,680 10.1096% CONTINGENCY & RESERVE $9,452 $193 $9,645 3.2853%
SUBTOTAL $287,716 $5,872 $293,588 100%
2 CIVIL SIDEWALKS $15,954 $326 $16,280 40.4382%
DISTRICT IDENTITY & PLACEMAKING $11,033 $225 $11,258 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $7,179 $147 $7,326 18.1972% COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
10 ADMINISTRATION & PROGRAM MANAGEMENT $3,988 $82 $4,070 10.1096% CONTINGENCY & RESERVE $1,297 $26 $1,323 3.2853%
SUBTOTAL $39,451 $806 $40,257 100%
1&2 CIVIL SIDEWALKS $132,301 $2,701 $135,002 40.4382%
DISTRICT IDENTITY & PLACEMAKING $91,507 $1,868 $93,375 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $59,535 $1,215 $60,750 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $33,075 $675 $33,750 10.1096% CONTINGENCY & RESERVE $10,749 $219 $10,968 3.2853%
TOTAL YEAR 3 - 2024 $327,167 $6,678 $333,845 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 4 1 CIVIL SIDEWALKS $122,164 $2,494 $124,658 40.4382% DISTRICT IDENTITY & PLACEMAKING $84,498 $1,725 $86,223 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $54,974 $1,121 $56,095 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $30,541 $623 $31,164 10.1096% CONTINGENCY & RESERVE $9,925 $203 $10,128 3.2853%
SUBTOTAL $302,102 $6,166 $308,268 100%
2 CIVIL SIDEWALKS $16,752 $342 $17,094 40.4382%
DISTRICT IDENTITY & PLACEMAKING $11,585 $236 $11,821 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $7,538 $154 $7,692 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $4,187 $86 $4,273 10.1096% CONTINGENCY & RESERVE $1,362 $27 $1,389 3.2853%
SUBTOTAL $41,424 $845 $42,269 100%
1&2 CIVIL SIDEWALKS $138,916 $2,836 $141,752 40.4382%
DISTRICT IDENTITY & PLACEMAKING $96,083 $1,961 $98,044 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $62,512 $1,275 $63,787 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $34,728 $709 $35,437 10.1096% CONTINGENCY & RESERVE $11,287 $230 $11,517 3.2853%
TOTAL YEAR 4 - 2025 $343,526 $7,011 $350,537 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 5 1 CIVIL SIDEWALKS $128,272 $2,619 $130,891 40.4382% DISTRICT IDENTITY & PLACEMAKING $88,723 $1,811 $90,534 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $57,723 $1,177 $58,900 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $32,068 $654 $32,722 10.1096% CONTINGENCY & RESERVE $10,421 $213 $10,634 3.2853%
SUBTOTAL $317,207 $6,474 $323,681 100%
2 CIVIL SIDEWALKS $17,590 $359 $17,949 40.4382%
DISTRICT IDENTITY & PLACEMAKING $12,164 $248 $12,412 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $7,915 $162 $8,077 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $4,396 $90 $4,486 10.1096% CONTINGENCY & RESERVE $1,430 $28 $1,458 3.2853%
SUBTOTAL $43,495 $887 $44,382 100%
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
11 1&2 CIVIL SIDEWALKS $145,862 $2,978 $148,840 40.4382% DISTRICT IDENTITY & PLACEMAKING $100,887 $2,059 $102,946 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $65,638 $1,339 $66,977 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $36,464 $744 $37,208 10.1096% CONTINGENCY & RESERVE $11,851 $241 $12,092 3.2853%
TOTAL YEAR 5 - 2026 $360,702 $7,361 $368,063 100%

CVCBID WORK PLAN
Overview
The services, programs and improvements to be funded by the CVCBID include Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve. The property uses within the boundaries of the CVCBID that will receive special benefits from CVCBID funded programs, services and improvements are currently an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums. Services, programs and improvements provided and funded by the CVCBID are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the CVCBID. The varying programmed service levels in each benefit zone are delineated within each work plan element description.

These special benefits are particular and distinct to each and every identified assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

The very nature of the purpose of the CVCBID is to fund supplemental programs, services and improvements to assessed parcels within the CVCBID boundaries above and beyond the base line services provided by the City of Santa Barbara. The City of Santa Barbara does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the CVCBID are for services, programs and improvements directly benefiting each individual assessed parcel within the CVCBID. No CVCBID funded services, activities or programs will be provided outside of the CVCBID boundaries.

The program special benefit cost allocations of the CVCBID assessment revenues for Year 1 are shown in the Table on page 14 of this Report. The projected program special benefit cost allocations of the CVCBID assessment revenues for the 5-year CVCBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

WORK PLAN DETAILS
The services to be provided by the CVCBID (i.e. Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve) are all designed to contribute to the cohesive commercial and residential fabric to ensure economic success and vitality of the CVCBID. The assessed parcels in the CVCBID will specially benefit from the CVCBID programs in the form of increasing commerce and improving economic success and COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
12 vitality through meeting the CVCBID Goals: to improve safety, cleanliness, beautification, landscaping, livability and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel.

Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all CVCBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, CVCBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, safety and aesthetic appeal for patrons, visitors and employees of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the array of goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district.

For residential parcels and residential portions of mixed-use parcels within the CVCBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit, but differently than commercial type parcels, from CVCBID funded programs and services which are designed to improve the cleanliness, safety, marketability and livability of these parcels and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the CVCBID. For these parcels, CVCBID programs, services and improvements are designed to increase residential rental occupancies and income. These programs, services and improvements are designed to improve safety and aesthetic appeal for tenants, visitors and landlords of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the availability of residential rental units within the CVCBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

These benefits are particular and distinct to each and every identified and assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

The following programs, services and improvements are proposed by the CVCBID to specially benefit each and every individually assessed parcel within the CVCBID boundaries. CVCBID services, programs and improvements will not be provided to parcels outside the CVCBID boundary. Assessment funds generated in each benefit zone shall only be used to provide services which specially benefit individual assessed parcels within that benefit zone.

CIVIL SIDEWALKS:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the CVCBID
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the CVCBID • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
13 • Organization and oversight of trash collection & news racks • Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams.
• Farmers market assistance
• Refurbishment of street signs and monuments
CVCBID IDENTITY & PLACEMAKING:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins
• In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road • Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
14 ADMINISTRATION & PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CONTINGENCY & RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves, capital project improvements In summary, all CVCBID funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the CVCBID boundaries and none will be provided outside of the CVCBID. Each assessed parcel within the CVCBID will proportionately specially benefit from Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve. These services, programs and improvements are intended to improve commerce, employment, rents and occupancy rates of assessed parcels within the CVCBID by deterring crime, reducing litter, installing physical improvements and professionally marketing goods, services and spaces available within the CVCBID, all necessary in a competitive properly managed contemporary mixed-use business district. All CVCBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of each and every assessed parcel within the boundaries of the CVCBID.

WORK PLAN BUDGET
Each identified assessed parcel within the CVCBID will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of CVCBID funded services provided within each benefit zone. The projected CVCBID program special benefit (assessments) allocation budget for Year 1 is shown in the following Table:

CVCBID Year 1 - Special Benefit Assessment Budget by Zone

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 40.4382% 27.9698% 18.1972% 10.1096% 3.2853% 100%
1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967 87.9418% 2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782 12.0582% TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749 100.00% In order to carry out the CVCBID programs outlined in the previous section, a Year 1 assessment budget of $296,749 is projected. Since the CVCBID is planned for a 5-year term, projected program costs for COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
15 future years (Years 2-5) are set at the inception of the CVCBID. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year CVCBID term.

Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with The Management District Plan. Detailed annual budgets will be prepared by the Owners’ Association Board and included in the Annual Report for the City Council’s review and approval.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed CVCBID. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories, based on such cost fluctuations subject to the review and approval by the Owners’ Association Board. Such reallocation will be included in the Annual Report for the approval by the City of Santa Barbara City Council pursuant to the Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category in accordance with The Management District Plan.

A 5-year projected CVCBID special benefit budget is shown in the following Table:

YEARS 1-5 PROJECTED CVCBID ASSESSMENT BUDGET SUMMARY (Special Benefits) (Assumes 5% max rate increase per year)

YEAR

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL
% 40.4382% 27.9698% 18.1972% 10.1096% 3.29% 100.00%
1 1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967
2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782
TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749
2 1 $110,807 $76,642 $49,863 $27,702 $9,002 $274,016
2 $15,194 $10,508 $6,837 $3,798 $1,235 $37,572
TOTAL $126,001 $87,150 $56,700 $31,500 $10,237 $311,588 3 1 $116,347 $80,474 $52,356 $29,087 $9,452 $287,716
2 $15,954 $11,033 $7,179 $3,988 $1,297 $39,451
TOTAL $132,301 $91,507 $59,535 $33,075 $10,749 $327,167 4 1 $122,164 $84,498 $54,974 $30,541 $9,925 $302,102
2 $16,752 $11,585 $7,538 $4,187 $1,362 $41,424
TOTAL $138,916 $96,083 $62,512 $34,728 $11,287 $343,526 5 1 $128,272 $88,723 $57,723 $32,068 $10,421 $317,207
2 $17,590 $12,164 $7,915 $4,396 $1,430 $43,495
TOTAL $145,862 $100,887 $65,638 $36,464 $11,851 $360,702 COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
16 The CVCBID assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of Santa Barbara City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the CVCBID) shall determine the percentage increase, if any, to the annual assessment, not to exceed 5% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the CVCBID operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Santa Barbara. No bonds are to be issued in conjunction with the proposed CVCBID.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewal budget or returned to stakeholders in accordance with State Law. CVCBID assessment funds may be used to pay for costs related to the following CVCBID renewal term. If the CVCBID is not renewed or terminated for any reason, unencumbered/unexpended funds will be returned to the property owners in accordance with State Law.

Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided.

Each identified assessed parcel within the CVCBID will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified assessed parcel within the CVCBID as a whole and the Benefit Zone in which it is located. Larger parcels and those with larger buildings and/or street frontages and/or ones located in Zone 1 are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings and/or street frontages and/or located in Zone 2 and thus, are assigned a greater proportionate degree of assessment program and service costs. The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes.

The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed as an attachment to the Management District Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) is computed by dividing the individual parcel assessment by the total special benefit program related costs.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
17 Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed CVCBID, they are also considerably less than other options considered by the CVCBID Formation Advisory Committee. The actual assessment rates for each parcel within the CVCBID directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”
Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are currently no publicly owned parcels within the boundaries of the proposed CVCBID. In, the future, should any other parcels be acquired by a public agency, it is the opinion of this Assessment Engineer that there is no clear and convincing evidence that such parcels would not receive special benefits and thus, would not be exempt from assessments nor assessed differently than privately owned parcels.

Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed CVCBID.

Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.”
The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Management District Plan and this Report. The proposed CVCBID and resultant assessment levies will continue for 5 years and may be renewed again at that time. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each CVCBID assessed parcel within two benefit zones, except as noted herein.

Assessment Formula Methodology
Step 1. Select “Basic Benefit Unit(s)”
Background - Assessment Formula Development
The method used to determine special benefits derived by each identified assessed property within a CBID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
18 as those proposed in the CVCBID, the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by a CBID in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis.

Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the assessment formula, different factors may be assigned different “weights” or percentage of values based on their relationship to programs/services to be funded.

Next, all program and activity costs, including incidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or “special” benefits related costs may be used. Indirect or general benefits must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See page 17 of this Report for discussion regarding publicly owned parcels within the CVCBID).

From the estimated net program costs, the value of a basic benefit unit or “basic net unit cost” can be computed by dividing the total amount of estimated net program costs by the total number of benefit units.

The amount of assessment for each parcel can be computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionally or “spread” amongst all benefitting properties within the CBID.

The method and basis of spreading program costs varies from one CBID to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBIDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or “stepped-down” benefits derived.

CVCBID Assessment Formula
Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. civil sidewalks, district identity & placemaking, capital improvements & traffic management, administration & program management and contingency & reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage (excluding public alleys) of each parcel within two benefit zones, except as noted herein.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
19 The “Basic Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”), and in the case of residential condo parcels, building square footage (Benefit Unit “D”). Based on the shape of the proposed CVCBID, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage within two benefit zones, except as noted herein.

In the opinion of this Assessment Engineer, the targeted weight of Zone 1 revenue to match the projected costs of Zone 1 services, should generate approximately 90% of the total CVCBID revenue (87.9418% when adjusted for precise parcel measurements and program costs and service levels).

In the opinion of this Assessment Engineer, the targeted weight of Zone B revenue to match the projected costs of Zone B services, should generate approximately 10% of the total CVCBID revenue (12.0582% when adjusted for precise parcel measurements and program costs and service levels).

The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBID funded services, programs and improvements. These factors directly relate to the degree of special benefit each assessed parcel will receive from CVCBID funded activities within each benefit zone.

Building area (Benefit Unit A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on CVCBID funded activities. The combined weight of Units A & D is

33.808625%. Unit A will generate 27.24996% of the overall assessment revenue. Unit D will generate

6.504689% of the overall assessment revenue
Land area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on CVCBID funded activities. Unit B will generate

40.670852% of the overall assessment revenue.

Street frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on CVCBID funded activities. Unit C will generate 25.520521% of the overall assessment revenue.

Special Assessment Circumstances

1. Internal Structured Parking Building Area
It is the opinion of this Assessment Engineer that building area for private parking within a building shall not be assessed. Public parking, whether internal or external, will be assessed for the building area of such parking as well as the underlying parcel land area and street frontage.

2. Residential Condominiums
There are currently 45 residential condominium units within the CVCBID. It is the opinion of this Assessment Engineer that these residential condominium parcels will proportionately specially benefit from CVCBID funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
20 3. Multi-Unit Residential (rental)
In the opinion of this Engineer, parcels with multi-unit residential uses (currently 2) within the proposed CVCBID), will proportionately specially benefit from CVCBID funded programs, services and improvements but different than commercial parcels and uses. In the opinion of this Engineer, the level of benefit for the proposed CVCBID funded programs, services and improvements for multi-unit residential use parcels shall be based on the reduced building rate applied to residential condominiums but the same as the respective zone rates of commercial parcels and uses for parcel land area and street frontage.

4. Commercial and Mixed-Use Condominiums
Ground floor commercial condominiums within the CVCBID shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows:

Multi-Floor Commercial Only Condominiums (Upper Floors) - Building area assessed at respective building area rate Multi-Floor Mixed-Use Condominiums
- Commercial condo (See # 5 above)
- Residential condo (See # 2 above)
Changes to Building and/or Parcel Size
Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments.

Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Plan would require a new Article XIIID ballot procedure in order to approve any such changes.

Step 2. Quantify Total Basic Benefit Units
Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table:

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
21 Year 1 - Assessable Benefit Units

BENEFIT
ZONE

BLDG AREA
(SQ FT)

LAND AREA
(SQ FT)
STREET

FRONTAGE
(LN FT)
RESID
CONDO

BLDG AREA
(SQ FT)
# of

PARCELS
1 394,680 1,063,657 8,085 157,322 104
2 70,155 238,747 1,842 4,868 11
TOTAL 464,835 1,302,404 9,927 162,190 115
Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative assessment revenue by factor and zone are shown in the following Table:

Year 1 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE
RESID
CONDO

BLDG AREA

REVENUE
TOTAL
REVENUE %
1 $71,042.40 $106,365.70 $64,680.00 $18,878.64 $260,966.74 87.9418% 2 $9,821.70 $14,324.82 $11,052.00 $584.16 $35,782.68 12.0582% TOTAL $80,864.10 $120,690.52 $75,732.00 $19,462.80 $296,749.42 100.00% 1 23.940198% 35.843608% 21.796167% 6.361812% 87.9418%
2 3.309762% 4.827244% 3.724354% 0.196853% 12.0582%
TOTAL 27.249960% 40.670852% 25.520521% 6.558665% 100.0000% Step 3. Calculate Benefit Units for Each Property.

The number of Benefit Units for each identified benefiting parcel within the proposed CVCBID was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the CVCBID for their review. If a property owner believes there is an error on a parcel’s assessed footages, the CVCBID may confirm the data with the Santa Barbara County Assessor’s office. If CVCBID data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the CVCBID assessment may be corrected.

Step 4. Determine Assessment Formula
In the opinion of this Engineer, the assessment formula for the proposed CVCBID is as follows:

Assessment = Building Area (Unit A) Sq Ft x Unit A Rate, plus Land Area (Unit B) Sq Ft x Unit B Rate, plus
Street Frontage (Unit C) Lin Ft x Unit C Rate
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
22 or
= Residential Condo Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates
Based on figures from the Assessable Benefit Units Table on page 21, the assessment rates for each factor and zone are shown as calculated in the Table below:

YEAR 1 - Assessment Rates

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)

RESID CONDO

BLDG AREA

ASSMT RATE
($/SQ FT)
1 $0.1800 $0.1000 $8.0000 $0.1200
2 $0.1400 $0.0600 $6.0000 $0.1200
The complete Year 1 assessment roll of all parcels to be assessed by the CVCBID is included in this Plan as Appendix I.

Step 5. Estimate Total CVCBID Costs
The total projected 5-year CVCBID special benefit costs are shown in the Table on page 15 of this Report assuming a maximum 5% increase per year.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $302,805. Districtwide general benefits are factored at 2% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit value is computed to be $6.056 with a resultant 98% special benefit limit computed at $296,749. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All program costs associated with district wide and site/activity specific general benefits will be derived from sources other than CVCBID assessments.

Step 7. Calculate “Basic Unit Cost”
With a YR 1 assessment revenue portion of the budget set at $296,749 (special benefit only), the Basic Unit Costs (rates) are shown earlier in Step 4. Since the CVCBID is proposed for a 5-year term, maximum assessments for future years must be set at the inception of the proposed CVCBID. An annual inflationary assessment rate increase of up to 5%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the CVCBID Property Owner’s Association.

The maximum assessment rates for the 5-year proposed CVCBID term of are shown in the Table below.

The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the proposed CVCBID term.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
23 CVCBID – 5-year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)
RESID

CONDO BLDG

AREA ASSMT
RATE ($/SQ
FT)
YEAR 1
1 $0.1800 $0.1000 $8.0000 $0.1200
2 $0.1400 $0.0600 $6.0000 $0.1200
YEAR 2
1 $0.1890 $0.1050 $8.4000 $0.1260
2 $0.1470 $0.0630 $6.3000 $0.1260
YEAR 3
1 $0.1985 $0.1103 $8.8200 $0.1323
2 $0.1544 $0.0662 $6.6150 $0.1323
YEAR 4
1 $0.2084 $0.1158 $9.2610 $0.1389
2 $0.1621 $0.0695 $6.9458 $0.1389
YEAR 5
1 $0.2188 $0.1216 $9.7241 $0.1458
2 $0.1702 $0.0730 $7.2931 $0.1458
Step 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the CVCBID are shown in the Management District and this Report and were determined by applying the CVCBID assessment formula to each identified benefiting property.

Miscellaneous CVCBID Provisions
Time and Manner of Collecting Assessments:

Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of Santa Barbara. The CVCBID assessments shall appear as a separate line item on the property tax bills issued by the Santa Barbara County Assessor. The City of Santa Barbara is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Management District Plan.

Bonds:

No bonds are to be issued in conjunction with this proposed CVCBID.

Duration
As allowed by the Ordinance, the CVCBID will have a five (5) year operational term.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
24 APPENDIX 1
CVCBID
YEAR 1

ASSESSMENT ROLL
25 APN Year 1
Assessment
009-211-012 $4,208.30
009-211-013 $6,035.10
009-211-014 $4,805.52
009-211-035 $3,209.52
009-211-038 $5,472.20
009-211-040 $13,901.38
009-211-043 $17,088.54
009-212-012 $2,350.60
009-212-013 $989.60
009-221-006 $6,828.02
009-222-010 $7,820.44
009-222-011 $4,783.32
009-222-025 $19,556.02
009-222-027 $11,692.76
009-230-001 $3,490.32
009-230-002 $6,188.90
009-230-031 $2,005.90
009-230-032 $1,331.24
009-230-035 $3,795.20
009-230-037 $8,648.30
009-230-038 $2,664.98
009-281-003 $5,538.90
009-291-001 $4,039.16
009-291-002 $2,564.60
009-291-003 $3,220.00
009-291-004 $3,224.00
009-291-005 $4,697.06
009-291-007 $7,739.00
009-291-008 $10,946.80
009-291-009 $2,751.86
009-291-010 $2,088.14
009-291-011 $1,188.40
009-291-012 $2,063.60
009-291-013 $7,546.86
009-291-019 $2,469.52
009-291-023 $5,907.86
009-291-025 $1,249.44
009-291-027 $939.90
009-291-029 $3,539.20
009-291-034 $4,278.90
009-291-035 $4,332.92
009-291-036 $4,479.24
009-291-037 $4,682.70
009-293-001 $3,147.28
009-293-002 $2,652.70
009-293-005 $2,768.24
009-293-006 $2,098.08
009-293-007 $16,907.38
009-530-001 $145.08
009-530-002 $145.08
009-530-003 $145.08
009-530-004 $125.64
009-530-005 $129.24
009-530-006 $149.64
009-530-007 $157.56
009-530-008 $139.80
009-530-009 $143.76
009-530-010 $155.16
009-530-011 $147.60
009-530-012 $145.08
009-540-001 $145.08
009-540-002 $145.08
009-540-003 $145.08
009-540-004 $125.64
009-540-005 $129.24
009-540-006 $145.08
009-540-007 $162.72
009-540-008 $141.72
009-540-009 $143.76
009-540-010 $155.16
009-540-011 $147.60
009-540-012 $145.08
009-540-013 $145.08
009-550-001 $145.08
009-550-002 $145.08
009-550-003 $145.08
009-550-004 $125.64
009-550-005 $129.24
009-550-006 $145.08
009-550-007 $162.72
009-550-008 $141.72
009-550-009 $143.76
009-550-010 $155.16
009-550-011 $147.60
009-550-012 $145.08
009-550-013 $145.08
009-730-001 $788.98
009-730-002 $1,861.22
009-730-003 $1,500.40
009-730-004 $1,111.20
009-730-005 $0.00
009-740-001 $213.60
009-740-002 $257.28
009-740-003 $1,003.92
009-740-004 $521.08
009-740-005 $488.12
009-740-006 $889.28
009-740-007 $236.88
009-740-008 $235.76
009-740-009 $254.52
009-740-010 $2,169.90
009-760-001 $378.36
009-760-002 $356.28
009-760-003 $284.16
009-760-004 $374.28
009-760-005 $447.00
009-760-006 $496.00
009-760-007 $421.12
009-760-008 $585.00
009-760-009 $768.36
009-760-010 $2,485.50
017-391-001 $3,821.86
017-391-002 $1,323.66
017-391-003 $2,049.92
017-391-008 $12,016.52
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
26 APPENDIX 2

CVCBID BOUNDARY MAP
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
27 1
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA ESTABLISHING AND FORMING THE

COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT
DISTRICT PURSUANT TO CHAPTER 4.45 OF THE SANTA

BARBARA MUNICIPAL CODE AND LEVYING THE

ASSESSMENT IN CONNECTION WITH SUCH DISTRICT
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (“CBID Ordinance”) authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (“State Law”), except to the extent the provisions of the State Law are inconsistent with the provisions of the CBID Ordinance; and
WHEREAS, on March 29, 2022, in response to a petition by property owners that satisfied the requirements of Section 4.45.060 of the CBID Ordinance, the City Council adopted Resolution No 22-023 (“Resolution of Intention”), declaring the intention of the City Council to establish the Coast Village Community Benefit Improvement District (“District”) pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District (“Assessment”); and
WHEREAS, a Management District Plan for the District (“MDP”) is attached hereto as Exhibit A and incorporated herein by reference; and
WHEREAS, the MDP is unchanged from the Management District Plan that was incorporated into the Resolution of Intention; and
WHEREAS, the Assessment is supported by a detailed engineers’ report dated February 6, 2022, which is on file in the Office of the City Clerk and available for public inspection (“Engineers’ Report”); and
WHEREAS, the Resolution of Intention set June 7, 2022 at 2:00 PM or as soon thereafter as the matter could be heard, in the City Council Chambers located at 735 Anacapa Street, Santa Barbara, CA 93101 as the time and place for a public hearing on the establishment of the District and the levy of assessments in connection with the District (“Public Hearing”); and
2 WHEREAS, notice of the hearing was mailed to affected property owners in the manner required by Section 36623(a) of the State Law, Section 53753 of the California Government Code, and Article XIII D, Section 4 of the California Constitution; and WHEREAS, as required by applicable law, such notice was accompanied by a property owner assessment ballot; and
WHEREAS, at the appointed time and place, the City Council held the Public Hearing; and
WHEREAS, at the Public Hearing, the City Council accepted and considered oral and written testimony and protests from all persons seeking to present such testimony; and
WHEREAS, the City Clerk accepted ballots at the City Clerk’s Office at the beginning of the Public Hearing, and at the Public Hearing through the close of the public input portion of such hearing; and
WHEREAS, the City Clerk has tabulated the ballots submitted and has determined that ballots representing $_______ in proportionate financial obligation were submitted in opposition to the Assessment and ballots representing $_______ in proportionate financial obligation were submitted in support of the Assessment; and WHEREAS, the proportionate financial obligation represented by the ballots returned in opposition to the proposed assessment did not exceed the proportionate financial obligation represented by the ballots returned in favor of the proposed assessment; and
WHEREAS, the City Council now desires to establish and form the District and levy the proposed assessment in connection with the District.

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

1. The above recitals are true and correct.

2. The District, as described in the MDP, is hereby formed and established pursuant to the CBID Ordinance.
3 3. The District is generally located in the Coast Village Road Commercial District. For a full and complete description of the boundaries of the District, reference is made to the map printed at Page 10 of the MDP.

4. The Assessment will be used to fund the following categories of improvements, maintenance and activities: (i) civil sidewalks, (ii) district identity and placemaking, (iii) administration/program management, and (iv) capital improvements/traffic management, as well as to fund contingency reserves and certain costs charged by the County of Santa Barbara in connection with the collection of assessments. Reference is made to the MDP for a more complete description of authorized expenditures.

5. The initial term of the District will run for five years, beginning in Fiscal Year 2022-23 and running through Fiscal Year 2026-27, unless the District is disestablished pursuant to the CBID Ordinance or applicable law. The District will terminate on June 30, 2027 unless renewed pursuant to the CBID Ordinance.

6. The properties in the District shall be subject to any amendments to the State Law.

7. The Assessment will be levied annually against real property in the District.

Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax.

The rate of the proposed assessment is set forth in the MDP, particularly in the rate table set forth on page 24 of the MDP. The total amount of the assessment for fiscal year 2022- 23 is proposed to be $296,749. The amount to be levied and collected for subsequent years is subject to a potential annual adjustment to not exceed five percent per year.

8. The improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the Assessment.

The revenue from the Assessment will not be used to provide improvements, maintenance, or activities outside the District or for any purpose other than the purposes set forth in this Resolution. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels may be provided, but shall be limited to marketing or signage pointing to the district.
4 9. The property within the area of the District will be benefited by the improvements, maintenance, and activities funded by the Assessment, and that property within the district will receive a special benefit.

10. The total amount of all special benefits to be conferred on the properties within the District is $296,749 in Fiscal Year 2022-23.

11. A majority protest against the District and the Assessment does not exist.

11. The City Clerk is directed to record the notice and map required by Section 36627 of the State Law.

12. The adoption of this Resolution and recordation of the notice and map pursuant to Section 36627 shall constitute the levy of the Assessment in each of the fiscal years referred to in the MDP.
1 THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Final Plan – March 22nd
, 2022
Prepared for the:

The Coast Village Association
City of Santa Barbara
Prepared by:

New City America, Inc.

Corporate Office  2011 W. California Street  San Diego, CA 92110  888 256-2726  Fax 619-239-7105 Midwest Office: 300 State Street  Ste 4710  Chicago, Ill  60654 New England Office: 42 Pearl Street  New Bedford, MA  02740 [email protected]  www.newcityamerica.com  Facebook: New City America, Inc.

Exhibit A
2 Section Number

1. Management District Plan Summary 3

2. Coast Village CBID Boundaries 9

3. District Improvement and Activity Plan 11

4. Assessment Methodology 17

5. District Rules, Regulations and Governance 26

6. Implementation Timetable 26

7. Assessment Roll of Properties Included 27
Attachment:
a. Engineer’s Report
The Coast Village Community Benefit Improvement District 2022 Management District Plan
3 The name of this Community Benefit Improvement District (“CBID”) is the Coast Village Community Benefit Improvement District (“Coast Village CBID” or the “District”). The District is being formed under the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code Chapter 4.45).

The levy of assessments on real property within the proposed District will fund physical and maintenance and operational improvements to individual properties, with the intent to attract new customers, tenants, and increase business sales. throughout the Coast Village District.

Coast Village CBID Steering Committee
For decades, the Coast Village Association has led the effort to improve and enhance the experience and overall ambiance of working, visiting, shopping in and residing in the Coast Village district. Its efforts have paid off well but are hindered by a lack of sustainable revenue to fund the improvements as well as not having staff to oversee the short- and long-term needs of the district.

In the summer of 2020, the Coast Village Association hired New City America, a Southern California company that specializes in CBID and PBID investigations and formations, to investigate the likelihood of conceptual support for a new Coast Village District Community Benefit Improvement District. We conducted a survey to gauge support within the community for a new Special Benefit District for the Coast Village District property owners.

Priority Special Benefit Services/Survey
This past September, a survey was sent out to all the property owners in the proposed CBID area to ascertain their level of conceptual support for the services that would be funded through the establishment of a new Coast Village Improvement District (CVCBID). The survey results informed us of the priority services desired by the property owners and those special benefits have been incorporated into this plan and will be articulated in the plan as well as the Engineer’s report.

We received responses from over 50% of the property ownersin the proposed district, (based upon property data in the district). In their response to the survey, the property owners prioritized the following special benefit services, among issues that property owners have had concerns about the public rights of way.
• First, the response prioritized funding marketing and promotions, social media and branding programs to attract new tenants to the district.
• Second, property owners supported funding special events such as Holiday décor, street festivals etc. to improve the identity and bring positive attention to the Coast Village district. • Third, property owners supported planting, trimming and maintenance of trees, flowers and shrubs throughout Coast Village.
• Fourth, the priority stated was to create a more orderly environment in the public rights of way, over and above what the City of Santa Barbara City staff is currently providing Section 1
Management District Plan Summary
4 Changes in Santa Barbara’s Coast Village District
The investigation of a new Coast Village District CBID centered on these 5 questions:

1. How to fund the programs that will make the Coast Village District brand become more positive in Southern California.

2. How to create greater demand for Coast Village District’s buildings resulting in greater rental rates and commerce to businesses and tenants, particularly in light of the devasting impact of the COVID 19 pandemic.

3. How to drive more tenants to the buildings in the Coast Village District and attract more customers and visitors to rebuild the retail and restaurant sectors here.

4. How to ensure that the public rights of way will become more beautiful, and attractive and promote the culture and history of the Coast Village District.

5. How to fund and sustain the improvements needed to provide adequate lighting and landscaping as well as mitigation of the 101-realignment project and its impact on Coast Village Road and its businesses.

How can a new CBID benefit property owners in Coast Village District? In summary, a Coast Village CBID is a Special Benefits Assessment District allowable in the state constitution that allows for the levy of assessments on benefitting property owners with the purpose of funding special benefit services that convey these benefits to the property owners within the proposed district boundaries. The special benefit services to be funded through this plan include responded to:
• Sidewalk cleanliness
• Increase the trimming and replacement of damaging trees and landscaping • Install/improve decorative amenities such as street furniture/fixtures/equipment/lighting • Promote and enhance the brand/image of Coast Village
• Manage events at in and around the district
• Create a strong social media presence, and facilitate public relations for Coast Village businesses
• Provide parking directional services and other mobility related activities • Promote public space development and placemaking

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage, on all sides of the parcel (excluding alleys) • Lot size or the footprint of the parcel
• Building square footage
• Current and future residential condominiums that will be constructed within the District 5 • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated benefit with the current land uses:

1. Residential condominiums will be assessed for their specific parcel building square footage only.

2. All private, public and tax-exempt owned and operated parcels will be assessed for linear frontage, building square footage and lot size

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District.

The data that was obtained from Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Broken down by benefit zone:

Zones Building
Square Feet
Lot
Square Feet
Linear
Frontage
Residential
Condos/Apt
1 394,680 sq. ft 1,063,657 sq. ft. 8,085 linear feet 157,322 sq. ft. 2 70,155 sq. ft. 238,747 sq. ft. 1,842 linear feet 4,868 sq. ft.

Total 464,835 sq. ft 1,302,404 sq. ft 9,927 linear feet 162,190 sq. ft.

Boundaries:

The following description summarizes the two different Benefit Zones within the proposed Coast Village Community Benefit Improvement District. Both of the Benefit Zones are predominantly geographically based, In general, the Benefit Zone boundaries are proposed as follows:

Zone 1. Core Area: on the east side, commencing at Olive Mill Road and heading westward including parcels on both sides of the Coast Village Road between the 101 Freeway on the south and Hot Springs Road on the west. Parcels facing the 101 freeway with no frontage along Coast Village Road will instead be included in Benefit Zone 2 assessment rates since they will not receive the same benefit as parcels fronting directly onto Coast Village Road.

Zone 2: Peripheral area: on the far west side of the district on the south side of the 101-freeway beginning 6 at Cabrillo Road on the east and ending at parcel # 391-001-000 on the west, which include those parcels north of Highway 101 which do not front along Coast Village Road.

Costs:

The costs per parcel are based upon the five factors listed on Page 7 above. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district along Coast Village Road, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received.

Proposed First Year Coast Village District CBID Budget - 2022 Category of Services Percentage of
budget
1st Year
Allocation
Civil Sidewalks 40% $ 120,000
District Identity and Placemaking 28% $ 83,000
Administration 18% $ 54,000
Capital Improvements – Traffic
Management
10% $ 30,000
Contingency/Reserve 4% $ 9,749
Total 1st year Budget 100% $ 296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square
Footage $0.18 per square foot
$0.14 per square
foot
Commercial Lot Size $0.10 per square foot
$0.06 per square
foot
Commercial Linear Frontage $8.00 per linear foot
$6.00 per linear
foot
Residential Condos Building
Square Footage $0.12 per square foot
$0.12 per square
foot
Residential apartments
(Residential apartments and
mixed-use developments will
pay for Benefit Zone 1 lot size
and linear frontage costs in
addition to the reduced building
square footage costs.)
$0.12 per square
foot.
$0.10 per square foot
of lot size;
$8.00 per linear foot
$0.12 per square
foot; $0.10 per
square foot of
lot size;
$8.00 per linear
foot
7 Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid over the first three years of the formation of the district.

Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in Land Use
Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

District Formation
Under the local enabling ordinance, District formation requires a submission of petitions from property owners in the proposed district representing more than 30% of the total assessments to be paid into the CBID. Once the City verifies the petitions totaling a minimum of 30%, ($89,025) of the first-year annual budget which is projected to be $296,749.00 in assessments in the District, the Santa Barbara City Council may adopt a Resolution of Intention to mail out ballots to all affected property owners. The City will then hold a public hearing and tabulate the ballots. The Coast Village CBID will be formed if the weighted majority of all returned mail ballots support District formation and if the City Council adopts a Resolution of Formation to levy the assessments on the benefiting parcels. The date for that public hearing has not been scheduled but is assumed that it will be held in late March 2022, based upon the successful completion of the petition drive.

Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period.

Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes.

Public and Tax-Exempt Parcels
8 The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.

Governance
Pursuant to Section 36650 of the California Streets and Highway Code, an Owners’ Association will report on District budgets and policies annually to the Santa Barbara City Council. The Management Corporation, which will be under contract with the City of Santa Barbara, must file Annual Reports with the City as the Owners Association will oversee the day-to-day implementation of services as defined in the Management District Plan.
“Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway. Code § 36612.)
An existing or new public benefit non-profit corporation (501c3) will be established once the district has been approved by the property owners and it will serve in the capacity of the Owners Association. The current Coast Village Road Association seeks to become a new public benefit, non-profit corporation and will therefore create a successor organization, serving as the Owners Association, to administer the district under contract with the City.

Disestablishment
Under the local enabling ordinance, the Coast Village CBID property owners will have an annual period in which to submit petitions to the City Council to disestablish the CBID. If the property owners vote by weighted majority to disestablish the District, assessments will be removed from the parcels the following fiscal year. Unexpended surplus funds will be returned to property owners based upon a parcel’s percentage contribution to the previous fiscal year’s assessments. This disestablishment procedure is articulated in both the Santa Barbara City Municipal Code, Section 4.45.100 as well as the California Streets and Highway Code, Section 36670.

Boundaries
The proposed Coast Village CBID consists of approximately 5 to 6 square blocks consisting of 115 parcels owned by 94 property owners. See the Coast Village proposed CBID map in Section 2, page 17.

Benefit Zones
The District consists of two benefit zones.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues running westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side of the street up to parcel 211-038-000.

Section 2
Boundaries
9 Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

Summation
A list of all parcels included in the proposed Coast Village CBID are shown as Appendix 1, attached to this report identified by their respective Santa Barbara County assessor parcel numbers. The boundary of the proposed Coast Village CBID is shown on the map to be found on pages 17 of this report. All identified assessed parcels within the above- described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Management District Plan. All Coast Village CBID funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District.
10 11
Explanation of Special Benefit Services
All of the improvements and activities detailed below are provided only to properties within the boundaries of the Coast Village CBID, as the improvements and activities will provide special benefits to the owners of these properties.

The City will continue to provide general benefit services from the general fund in the Coast Village District which will include public safety programs, street sweeping, tree trimming, roadwork repairs, sidewalk repair, trash collection of public refuse containers, etc. The frequency of these general benefits may change from year to year and time to time based upon budget constraints. However, City general benefits will not be withdrawn from Coast Village District unless they are withdrawn by an equal frequency City wide. The CBID funded special benefits will not replace City funded general benefits, but rather will provide special benefits to parcel owners over and above the general benefits provided by the City of Santa Barbara.

All services funded by the assessments outlined in the Management District Plan are intended to specifically benefit the properties within the District to support increased commerce, business attraction and retention, to retain and increase commercial property rentals, attract new residential developments, enhance safety and cleanliness in the District, improve District identity, and eventually fund specialized beautification and enhanced services for the property owners, businesses, visitors and residents within the District.

Special Benefit Budget Category Analysis
This Plan gives property owners greater flexibility in determining the type and frequency of special benefit services that will be allocated on a year-to-year basis. As Santa Barbara’s Coast Village District evolves, services that are needed one year may not be needed the next. Therefore, “bundles” or categories of special benefit funding have been created and divided into five broad categories – Civil Sidewalks, District Identity and Placemaking, Capital Improvements/Traffic Management, Administration and Contingency. The bundles are allocated funding percentages with the flexibility to prioritize or minimize a service within each bundle.

The bundles or categories of services and their percentages represent the service plan the Coast Village District property owners will be voting on when the Coast Village District CBID comes up for a mail ballot later in the Winter of 2022.

The proposed “bundles” of special benefit services are listed below and are supplemental to current City services.

CIVIL SIDEWALKS:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the district
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the district • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) • Organization and oversight of trash collection
Section 3
District Improvement and Activity Plan
12 • Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams. • Farmers market assistance
DISTRICT IDENTITY AND PLACEMAKING:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

ADMINISTRATION/PROGRAM MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CAPITAL IMPROVEMENTS/TRAFFIC MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins • In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road
• Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves, capital project improvements

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments upon real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII (d) of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage on all sides (excluding alleys)
13 • Lot square footage or the footprint of the parcel
• Building square footage.
• Residential condominiums that currently exist or will be constructed within the District. • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated based upon the current land uses:

1. Residential condominiums will be assessed for their actual parcel building square footage only.

2. All public and tax-exempt owned and operated parcels will be assessed similarly to other parcels based upon their location in their Benefit Zone.

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District. The data that was obtained by Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Data broken down by benefit zone:

Benefit
Zone
Building Square
Footage Lot Square Footage
Linear
Frontage
Residential
Condos/Apt
1 394,680
sq. ft
1,063,657
sq ft
8,085
linear
feet
157,322
sq ft.
2 70,155
sq. ft.
238,747
sq ft
1,842
linear
feet
4,868
Total 464,835
sq. ft
1,302,404
sq. ft
9,927
linear
feet
162,190
sq. ft
Costs
The costs per parcel are based upon the five factors listed on page 18. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received so we have agreed upon the following Benefit Zones.
14 Proposed First Year Coast Village District CBID Budget Category of Services
Percentage
of Budget 1st Year Allocation
Civil Sidewalks 40% $120,000
District Identity and
Placemaking 28% $83,000
Administration 18% $54,000
Capital Improvements –
Traffic Management 10% $30,000
Contingency/Reserve 4% $9,749
Total 1st year Budget 100% $296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square Footage $0.18 per square foot $0.14 per square foot Commercial Lot Size $0.10 per square foot $0.06 per square foot Commercial Linear Frontage $8.00 per linear foot $6.00 per linear foot Residential Condos Building Square
Footage $0.12 per square foot $0.12 per square foot
Residential apartments (Residential
apartments and mixed-use
developments will pay for Benefit Zone
1 lot size and linear frontage costs in
addition to the reduced building square
footage costs.)
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid in the first three years of the formation of the district. 15 Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

Operating Budget
A projected operating budget, based upon the local enabling ordinance, has an initial 5 - year term and may be renewed for up to 20 years more. New City America has listed the maximum percentage of allowable annual increases based upon the current data within the district, with the following assumptions:

Assessments may be subject to annual increase, based upon the action of the new Owners Association corporation Board, not to exceed 5% per year.

Changes in land use, demolition of existing buildings, and new development will occur and will change the improvements to that parcel, normally due to redevelopment of the site and the addition of new building square footage which shall be assessed based upon the provisions laid out in this Management Plan.

The budget for specific programs may be reallocated within each budget category by up to 10% during the term of the District. The Management Corporation Board may alter the budget based upon service needs and such changes shall be included in the Annual report and submitted to the Santa Barbara City Council for review and approval.

Five-Year Projection of Maximum Assessment for the Coast Village CBID Civil Sidewalks DISI Admin
Capital
Improvements/
Traffic
Management
Contingency TOTAL
Y1 $ 120,000.00 $ 83,000.00 $ 54,000.00 $ 30,000.00 $ 9,749.00 $ 296,749.00 Y2 $ 126,000.00 $ 87,150.00 $ 56,700.00 $ 31,500.00 $ 10,236.45 $ 311,586.45 Y3 $ 132,300.00 $ 91,507.50 $ 59,535.00 $ 33,075.00 $ 10,748.27 $ 327,165.77 Y4 $ 138,915.00 $ 96,082.88 $ 62,511.75 $ 34,728.75 $ 11,285.69 $ 343,524.06 Y5 $ 145,860.75 $ 100,887.02 $ 65,637.34 $ 36,465.19 $ 11,849.97 $ 360,700.26 16 Notes:
• Assumes a possible 5% maximum yearly increase on all budget items, if approved annually by the District Management Corporation Board of Directors
• Any accrued interest or delinquent payments will be expended in the above categories. 17 The proposed Coast Village CBID is a property-based special benefit assessment district being established pursuant to the Santa Barbara local enabling ordinance as well as Section 36600 of the California Streets and Highway Code.

The state constitution refers to the requirement that benefits received from CBID funded programs and activities be used to determine the amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be received.

General vs. Special Benefits
As provided by Proposition 218, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. “Special Benefit” as defined by the California State Constitution, Article XIII (d), means “a particular and distinct benefit over and above general benefits conferred on real property located in the District or to the public at large.” For the purposes of this analysis, “General Benefits” are benefits provided within Coast Village District that are not special in nature, are not "particular and distinct" and are not over and above the benefits that other city parcels receive.

General benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. “At large” means not limited to any particular person – and means all members of the public - including those who live, work, and shop within the district - and not simply transient visitors.

The property uses within the boundaries of the proposed Coast Village CBID which will receive special benefits from CBID funded programs and services are currently a mix of retail, service, office, mixed use, residential, public visitor related, cultural and parking. Services, programs and improvements provided by the Coast Village CBID are primarily designed to provide special benefits to identified parcels within the boundaries of the District.

Parcels that derive benefit from the special benefit programs, services, activities and improvements outlined in this Management District Plan will attract more customers, employees, tenants and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales transactions, occupancies, and rental income, and for future residents, make Coast Village District more walkable, attractive and livable. These benefits are particular and distinct in that they are not provided to nonassessed parcels within or outside of the District. Because these programs, services and improvements will only be provided to each individual
Section 4
Assessment Methodology
18 assessed parcel within the Coast Village CBID boundaries, these programs, services and improvements will constitute "special benefits.”
Existing City of Santa Barbara services will not be replaced or duplicated by the Coast Village CBID funded services. The purpose of this District is to fund supplemental programs, improvements and services within the Coast Village District boundaries beyond what is being currently funded either via normal tax supported methods or other funding sources. The assessments to be levied on parcels within the Coast Village CBID are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased commercial property rental income and improved District identity. No CBID funded services, activities or programs will be provided beyond the Coast Village District CBID boundaries.

While every attempt is made to provide CBID services and programs to confer benefits only to those identified assessed parcels within the District, the California State Constitution, Article XIII (d), was amended via Proposition 218 to provide that general benefits exist, either by design or unintentionally, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the District, or “spillover” onto parcels surrounding the District, or to the public at large who might be passing through the District with no intention of transacting business or residing within the District or interest in the District itself. Empirical assessment engineering analysis throughout California has found that general benefits within a given similar special benefit district tend to range from 1-5% of the total costs.

There are three methods that have been used by the Coast Village CBID Assessment Engineer for determining general and special benefit values within assessment districts:
(1) The parcel-by-parcel allocation method
(2) The program/activity line-item allocation method, and (3) The composite district overlay determinant method.

A majority of PBIDs and CBIDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which will be used for this CBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the District, general benefit to the public at large within the District and general benefit to parcels outside the District.

Coast Village CBID Programs and Improvements
The total special and general benefit program activities and budget allocations that will be provided to each individual parcel assessed in the proposed Coast Village CBID are shown in the chart below:
19 Total Year 1 – 2022 Special + General Benefit Costs
Table 4-A
Category of Special
Benefit Services
Year 1
Annual Amount
(assessments to
fund special
benefits)
Year 1
Non-Assessment
Costs (general
benefits ratio)
Year 1
Total Costs
(special and
general benefits) % Of Total
Civil Sidewalks $120,000 $2,449 $122,449 40%
District Identity
/Placemaking $83,000 $1,694 $84,694 28%
Administration $54,000 $1,102 $55,102 18%
Capital
Improvements,
Traffic
Management
$30,000 $614 $30,614 10%
Contingency $9,749 $197 $9,946 4%
Total $296,749 $6,056 $ 302,805.00 100%
All program costs associated with general benefits will be derived from sources or credits other than CBID assessments. Sample “other” revenue sources can be derived from special events, grants, volunteer hours and must simply equal a total of $6,056 per year which would equal the general benefit cost of 2% of the computed total CBID cost of $302,805 from the table above. Here, program costs are spread among property variables that are common to each parcel include linear frontage, lot or parcel size and building square footage, and residential condominium parcels and benefit zone. Assessed valuation cannot be used as the basis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations. We must therefore spread the assessments among the consistent factors of each parcel, based upon 2021 data.

Assessable Data in the Coast Village CBID Table 4-B
Benefit Zone Building
Sq. Ft.

Lot SF Linear frontage Residential Condo/Apt.
1 394,680 1,063,657 8,085 157,322
2 70,155 238,747 1,842 4,868
Total 464,835 1,302,404 9,927 162,190
20 Assessment District Revenue Generation in Fiscal Year 2022 from Each Assessable Property Variable:

Table 4 - C
Property Variable
Total
Revenue Generated Percent of Budget
Building Sq. Ft. $80,864 27%
Lot Sq. Ft. $120,690 41%
Linear Frontage $75,732 25%
Residential Condos Bldg. Sq. Ft. $19,463 7%
Total $296,749 100%
Annual Costs per property variable and Benefit Zone, first year, FY 2022 Table 4 – D
Property Variable Benefit Zone 1 Benefit Zone 2
Building Square Footage $0.18 $0.14
Lot size $0.10 $0.06
Linear Frontage $8.00 $6.00
Residential Condos
Building Square Foot
$0.12 $0.12
Residential apartments, mixed use
developments
$0.12 $0.12
Explanation of Costs
Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Coast Village Road in the core area of the District. Benefit Zone 1 properties are the historic core of Santa Barbara’s Coast Village District dating back almost 60 years built around Coast Village Road. Zone 1 properties include retail, restaurants, residential, office, hotel and residential condominiums and apartments. These parcels will benefit the most from the CBID special benefit services, therefore their assessments have been set to fund the costs of services to these parcels.

The higher costs assessed to Benefit Zone 1 parcels are based upon:
• 6 to 7 day per week services, particularly for cleaning and beautification services. • Benefit Zone 1 parcels are predominantly retail, visitor related, service and pedestrian oriented therefore they will need civil sidewalk special benefit services daily, particularly on the weekends.

Holiday traffic will also necessitate cleaning services. • Traffic control during the Highway 101 reconstruction will also impact Coast Village Road, Benefit Zone 1 properties, more than the Benefit Zone 2 properties. • District identity services will also be proportionally higher and confer special benefit services relative to Benefit Zone 2 parcels. Special events will be held in Benefit Zone 1, thereby benefitting property owners and their tenants there, no special events will probably be held in Zone 2. • Benefit Zone 2 parcels have completely different land uses. Their stated desire for special benefit services includes those that are primarily found in Civil Sidewalk services. • Benefit Zone 2 parcels will need regular public rights of way cleaning and landscaping services 3 - 5 days per week compared to Zone 1 parcels which will need similar services daily. 21 The assessment costs of Benefit Zone 1 versus Benefit Zone 2 costs result in Benefit Zone 2 parcels paying anywhere from 66% to 75% per cent of the Zone 1 annual assessments. This is consistent with the anticipated frequency and type of services each Zone will require.

Benefit Zone 2 parcels include the parcels that are not fronting on Coast Village Road but rather front along Highway 101, including the far western parcels of the business district that are to be found just south of Highway 101. The land uses of Benefit Zone 2 parcels are office, retail, residential, and related parking uses.

The costs in Benefit Zone 2 are lower than that of Benefit Zone 1 due to the lack of density in this portion of the district and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties along Coast Village Road.

Linear Frontage Defined
Individual parcels will be assessed for all sides of each parcel fronting on a public street. Alley frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Civil Sidewalks special benefit services. The linear front footage data was obtained from the County Assessor’s parcel maps.

Building Square Footage Defined
Building square footage is defined as gross building square footage throughout the Coast Village CBID.

Lot Square Footage Defined
Lot square footage is defined as the total amount of area within the borders of the parcel. The lot square footage of a parcel has been verified by the County Assessor’s parcel maps.

Commercial Condominium (non-residential portion of mixed-use buildings) - Parcels Defined Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building.

Ground floor commercial condominiums will pay 100% of the special benefits for the assessment, based upon which benefit zone they are within.

Residential Condominium Unit Parcels Defined
Residential condominium units building square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the Coast Village CBID. Unlike the other commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Current and future residential condominium parcels are assessed as a separate category. These residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.12 per square foot per year for the first year of the CBID, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the building square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and property owner have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future residential apartment buildings can be bought or 22 sold just as like commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e., ownership rights), as opposed to renters who only have a possessory interest.

2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners and have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to current and future residential condominium individual assessed parcels since residential condominium owners have expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the improvement or the maintenance and operation expenses of an improvement or for the cost of property service being provided. Per California Constitution Article XIII D, Section 2(i), “Special Benefit,” means a and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost of the proportional special benefits conferred upon that parcel. Only special benefits are assessable, and these benefits must be separated from any general benefits. Properties are assessed as defined on the County Assessor’s most current parcel maps. The preceding methodology is applied to the database of parcels within the District. The process for compiling the property database includes the following steps:

A report was generated from data obtained from the Santa Barbara County Tax Assessors office.

A list of properties to be included within the District is provided in Section 7. 23 First Year (2022) Parcel Assessment Calculation:

The annual assessment method to calculate all parcels for Benefit Zone 1 will be:

Total Linear Frontage X $8.00 per foot
+
Total Building Square Footage X $0.18 per sq. ft. or $0.12 per sq. ft. for Mixed Use Apartments Total Lot Size x 0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all commercial parcels for Benefit Zone 2 will be:

Total Linear Frontage x $6.00 per square foot
+
Total Building Square Footage X $0.14 per square foot
+
Total Lot Size x $0.06 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all parcels for Mixed Use residential parcels in Zone 1 and 2 will be:

Total Linear Frontage x 8.00 per square foot
+
Total Building Square Footage X $0.12 per square foot
+
Total Lot Size x $0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate the residential condominiums throughout the district will be:

Total Residential Condo Building Square Footage X $0.12 per square foot =

TOTAL PARCEL ASSESSMENT
24 Future Development
As a result of continued new development, the Coast Village CBID will experience the addition or subtraction of assessable commercial and residential buildings or the conversion of vacant parcels into new commercial and residential units. The Management District Plan assessment methodology will reflect any and all land use changes in the District with annual adjustments being submitted to the City, as these assessment calculation and property variable alterations occur. Therefore, parcels will be assessed each year based upon their then-current characteristics.

Maximum Assessment
Assessments may be subject to annual increases not to exceed 5% per year. Increases will be determined by the CBID District Management Corporation and will vary between 0% and 5% in any given year. The maximum the assessments may be increased is 5% over the previous fiscal year’s base assessments. The absence of increase in any given year does not give the District Management Corporation the authority to accumulate increases above 5% in any successive year. The following projections illustrate a potential 5% annual increase.

Maximum Assessments by Property Variable
Table 4 – E
Projected Assessments- Benefit Zone 1
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft.

Residential
Condo/Apt.

Bldg.

Sq. Ft.

Y1 $ 0.100 $ 8.000 $ 0.180 $ 0.120
Y2 $ 0.105 $ 8.400 $ 0.189 $ 0.126
Y3 $ 0.110 $ 8.820 $ 0.198 $ 0.132
Y4 $ 0.116 $ 9.261 $ 0.208 $ 0.139
Y5 $ 0.122 $ 9.724 $ 0.219 $ 0.146
Projected Assessments- Benefit Zone 2
Lot Sq. Ft Linear Frontage Non-Mixed Use
Bldg. Sq. Ft.

Residential
Condo/Apt Bldg.

Sq. Ft.

Y1 $ 0.10 $ 8.00 $ 0.140 $ 0.120
Y2 $ 0.630 $ 6.300 $ 0.147 $ 0.126
Y3 $ 0.662 $ 6.615 $ 0.154 $ 0.132
Y4 $ 0.695 $ 6.946 $ 0.162 $ 0.139
Y5 $ 0.729 $ 7.293 $ 0.170 $ 0.146
Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period. 25 Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. directly to the CBID property owners in late 2021 or early 2022 to fund the services outlined in this plan.

Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year’s budget. Assessments will be set annually. Revenues from delinquent accounts may be expended in the year they are received.

Disestablishment
California Streets and Highways Code section 36670 as well as the local CBD enabling ordinance provides for the disestablishment of a District. Provisions for annual disestablishment of the District are provided for in the local enabling ordinance. Property owners dissatisfied with the results, management or quality of the services may petition the City Council to disestablish the District, in the same method in which they petitioned the City Council to establish it. The same petition threshold needed to establish the District will also be needed to trigger a disestablishment of the District on an annual basis.

Section 36670 of the State Streets and Highway Code states:
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

Unexpended surplus funds will be returned to property owners based upon each property owner’s percentage contribution to the previous fiscal year’s assessments.

Government Assessments
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.
26 There are no specific rules and regulations prescribed for the proposed Coast Village Community Benefit Improvement District Management Corporation except that it will adhere to the open meeting and open records provisions of the Public Records Act. Under the Ralph M. Brown Act the Owners Association will seek to be as open and transparent to the CBID assessees and the public at large as is reasonably possible.

A new Coast Village CBID District Management Corporation (501c3), will be established once the district has been formed and shall serve in the capacity of the Owners Association consistent with State Statute and the local enabling ordinance.

The Coast Village CBID is expected to be established and begin assessing benefiting parcels as of the fourth quarter of calendar year 2022. The delivery of services is scheduled to commence in or around the winter of 2023.

Section 5
District Rules and Regulations and Governance
Section 6
Implementation Timetable
27 Annual
Assessment
009-211-012 $4,208.30
009-211-013 $6,035.10
009-211-014 $4,805.52
009-211-035 $3,209.52
009-211-038 $5,472.20
009-211-040 $13,901.38
009-211-043 $17,088.54
009-212-012 $2,350.60
009-212-013 $989.60
009-221-006 $6,828.02
009-222-010 $7,820.44
009-222-011 $4,783.32
009-222-025 $19,556.02
009-222-027 $11,692.76
009-230-001 $3,490.32
009-230-002 $6,188.90
009-230-031 $2,005.90
009-230-032 $1,331.24
009-230-035 $3,795.20
009-230-037 $8,648.30
009-230-038 $2,664.98
009-281-003 $5,538.90
009-291-001 $4,039.16
009-291-002 $2,564.60
009-291-003 $3,220.00
009-291-004 $3,224.00
009-291-005 $4,697.06
009-291-007 $7,739.00
009-291-008 $10,946.80
009-291-009 $2,751.86
009-291-010 $2,088.14
009-291-011 $1,188.40
009-291-012 $2,063.60
009-291-013 $7,546.86
009-291-019 $2,469.52
009-291-023 $5,907.86
009-291-025 $1,249.44
009-291-027 $939.90
009-291-029 $3,539.20
009-291-034 $4,278.90
009-291-035 $4,332.92
009-291-036 $4,479.24
009-291-037 $4,682.70
009-293-001 $3,147.28
009-293-002 $2,652.70
009-293-005 $2,768.24
009-293-006 $2,098.08
009-293-007 $16,907.38
009-530-001 $145.08
009-530-002 $145.08
009-530-003 $145.08
009-530-004 $125.64
009-530-005 $129.24
009-530-006 $149.64
009-530-007 $157.56
009-530-008 $139.80
009-530-009 $143.76
009-530-010 $155.16
009-530-011 $147.60
009-530-012 $145.08
009-540-001 $145.08
009-540-002 $145.08
009-540-003 $145.08
009-540-004 $125.64
009-540-005 $129.24
009-540-006 $145.08
009-540-007 $162.72
009-540-008 $141.72
009-540-009 $143.76
009-540-010 $155.16
009-540-011 $147.60
009-540-012 $145.08
009-540-013 $145.08
009-550-001 $145.08
009-550-002 $145.08
009-550-003 $145.08
009-550-004 $125.64
009-550-005 $129.24
009-550-006 $145.08
009-550-007 $162.72
009-550-008 $141.72
009-550-009 $143.76
009-550-010 $155.16
009-550-011 $147.60
009-550-012 $145.08
009-550-013 $145.08
009-730-001 $788.98
009-730-002 $1,861.22
009-730-003 $1,500.40
009-730-004 $1,111.20
009-730-005 $0.00
009-740-001 $213.60
Section 7
Assessment Roll of Properties Included
28 009-740-002 $257.28
009-740-003 $1,003.92
009-740-004 $521.08
009-740-005 $488.12
009-740-006 $889.28
009-740-007 $236.88
009-740-008 $235.76
009-740-009 $254.52
009-740-010 $2,169.90
009-760-001 $378.36
009-760-002 $356.28
009-760-003 $284.16
009-760-004 $374.28
009-760-005 $447.00
009-760-006 $496.00
009-760-007 $421.12
009-760-008 $585.00
009-760-009 $768.36
009-760-010 $2,485.50
017-391-001 $3,821.86
017-391-002 $1,323.66
017-391-003 $2,049.92
017-391-008 $12,016.52
29 CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 7, 2022
TO: Mayor and Councilmembers
FROM: Planning Division, Community Development Department SUBJECT: Interim Urgency Ordinance Limiting New Hotel Development Pending Completion Of The 2023 Housing Element
RECOMMENDATION: That Council:

A. Receive a staff report regarding an interim urgency ordinance to temporarily limit development or expansion of hotels; and
B. Adopt by reading in full, and by a four-fifths vote, an Interim Urgency Ordinance of the Council of the City of Santa Barbara Limiting the Development or Use of New Hotel Rooms Pending Adoption of the 2023 Housing Element; or C. Direct staff to return on June 28, 2022 with an interim urgency ordinance to temporarily prohibit development, use, or expansion of hotels pending adoption of the 2023 Housing Element.

EXECUTIVE SUMMARY:

On May 17, 2022, the City Council approved goals for the City’s 6th Cycle 2023 Housing Element. These goals include commitments to prioritizing housing development that is affordable to the City’s workforce and discouraging conversion of housing to other uses.

Council also directed the City Attorney and the City Administrator to schedule, in early June, further consideration of interim urgency zoning that would prevent new hotel development pending completion of the 2023 Housing Element.

Community Development staff recommend allowing some pending hotel development projects to proceed while the 2023 Housing Element is being drafted. A draft interim urgency ordinance is proposed to reflect that recommendation. In order to facilitate an informed Council deliberation, this report outlines other options to govern the point in the development review process at which the temporary hotel prohibition could apply. In addition, this report and interim urgency ordinance give Council the opportunity to enact Agenda Item No. 20
File Code No. 650.06
Council Agenda Report
Interim Urgency Ordinance Limiting New Hotel Development Pending Completion Of The 2023 Housing Element
June 7, 2022