Agenda packet, first session — Santa Barbara City Council, September 13, 2022

CITY OF SANTA BARBARA

CITY COUNCIL
Randy Rowse
Mayor
Rebecca Bjork
City Administrator
Meagan Harmon
Mayor Pro Tempore
Kristen W. Sneddon
Ordinance Committee Chair
Ariel Pierre Calonne
City Attorney
Eric Friedman
Finance Committee Chair
Alejandra Gutierrez
Oscar Gutierrez
Mike Jordan
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
SEPTEMBER 13, 2022, 2:00 PM
AGENDA
IN-PERSON PUBLIC COMMENT: At the beginning of each meeting of the City Council, Finance Committee, or Ordinance Committee, any member of the public may address the City Council concerning any item not on the Council's agenda. Any person wishing to make such address should first complete and deliver a "Request to Speak" form prior to the time that public comment is taken up by the City Council. Each speaker will be given a total of 3 minutes to address the Council. Pooling of time is not allowed during general public comment. The time allotted for general public comment at the beginning of the 2:00 p.m. session is 30 minutes.

Any member of the public who did not speak during the 2:00 p.m. session but who submitted a request to do so during the 2:00 30 minute session may do so at the end of the meeting when the additional “Public Comment (If Necessary)” is announced. The City Council, upon majority vote, may decline to hear a speaker on the grounds that the subject matter is beyond their jurisdiction.

REMOTE PUBLIC COMMENT: Members of the public wishing to speak must “raise their hand” in the Zoom platform by selecting the virtual hand icon when their item is called. The keyboard shortcut for this is Alt+Y for Windows and Option+Y for Macs. City staff will activate the speaker’s microphone when the speaker’s name is called. The speaker will then need to unmute themselves. The keyboard shortcut for this is Alt+M for Windows or Command-Shift-A for Macs.

HOW TO REMOTELY OBSERVE AND/OR SPEAK LIVE AT A MEETING
• Web: https://santabarbaraca-gov.zoom.us/webinar/register/WN_BHXU9bk1SWq0ntGHplRq0Q (Participation via Zoom)
• Telephone: Dial 1-669-900-6833, Enter Webinar ID: 948 7481 3299 (press *9 to raise/lower hand; press *6 to mute/unmute) • Online Streaming: Council meetings are streamed live at www.SantaBarbaraCA.gov/CAP • TV: Each regular City Council meeting is broadcast live in English and Spanish on City TV Channel 18 and rebroadcast in English on Wednesdays and Thursdays at 7:00 p.m. and Saturdays at 8:00 a.m., and in Spanish on Sundays at 3:00 p.m.

Each televised Council meeting is closed captioned for the hearing impaired. Check the City TV program guide at www.santabarbaraca.gov/citytv for rebroadcasts of Finance and Ordinance Committee meetings.

WRITTEN PUBLIC COMMENT: Public comments may also be submitted via email to [email protected] prior to the beginning of the Council Meeting. All public comments submitted via email will be provided to City Council and will become part of the public record.

ORDER OF BUSINESS: Regular meetings of the Finance Committee and the Ordinance Committee begin at 12:30 p.m. The regular City Council meeting begins at 2:00 p.m. in the Council Chambers at City Hall. (CONTINUED ON NEXT PAGE)
REPORTS: Copies of the reports relating to agenda items are available for review at http://www.SantaBarbaraCA.gov/CAP.In accordance with state law requirements, this agenda generally contains only a brief general description of each item of business to be transacted or discussed at the meeting. Should you wish more detailed information regarding any particular agenda item, you are encouraged to obtain a copy of the Council Agenda Report (a "CAR") online at the City's website (http://www.SantaBarbaraCA.gov/CAP). Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are posted to the City’s website as soon as reasonably feasible.

CONSENT CALENDAR: The Consent Calendar is comprised of items that will not usually require discussion by the City Council. A Consent Calendar item is open for discussion by the City Council upon request of a Councilmember, City staff, or member of the public. Items on the Consent Calendar may be approved by a single motion. Should you wish to comment on an item listed on the Consent Agenda, after turning in your "Request to Speak" form, you should come forward to speak or raise your hand in Zoom at the time the Council considers the Consent Calendar.

SPANISH INTERPRETATION: If you need interpretation of your communications to Council from Spanish into English, please contact the City Clerk’s Office at 564-5309 or by email at [email protected]. If possible, notification of at least 48 hours will usually enable the City to make arrangements.

INTERPRETACIÓN EN ESPAÑOL: Si necesita una interpretación del español al inglés, para sus comunicaciones al Consejo, comuníquese con la Oficina del Secretario Municipal al 564-5309, o por correo electrónico a [email protected]. Si es posible, la notificación de al menos 48 horas generalmente permitirá a la Ciudad hacer los arreglos.

AMERICANS WITH DISABILITIES ACT: If you need auxiliary aids or services or staff assistance to attend or participate in this meeting, please contact the City Administrator's Office at 564-5305 or by email at [email protected]. If possible, notification at least 48 hours prior to the meeting will usually enable the City to make reasonable arrangements. For those who need accessibility accommodation in using the “raise hand” function and/or registering to participate in the Zoom session, please contact the Clerk’s office by 5:00 p.m. the day before the meeting for assistance. Additionally, a speaker may email [email protected] by 5:00 p.m. the day before a meeting, stating which item they wish to speak on. Specialized services, such as sign language interpretation or documents in Braille, may require additional lead time to arrange. 09/13/2022 Santa Barbara City Council Final Agenda Page 1 SEPTEMBER 13, 2022 AGENDA
SPECIAL FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Parks and Recreation Department Financial Review (570.05) Recommendation: That the Finance Committee receive a presentation from staff on the Parks and Recreation Department’s programs and services, including sources of funding, expenditure analysis, and other operational topics.

2. Subject: Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units (660.04)
Recommendation: That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement to the Housing Authority of the City of Santa Barbara in the Amount of $940,000 to be Secured by a Deed of Trust for the Acquisition of Property Located at 602 and 619 Kentia Avenue, and the Affordability Control Covenant Imposed on Real Property, and Authorize the Community Development Director to Execute Such Agreements and Related Documents, Subject to Approval as to Form by the City Attorney, as Necessary; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 22-059, Adopting the Budget for Fiscal Year 2023, to Approve an increase in Fiscal Year 2023 expenditure appropriations in the City Affordable Housing Fund in the amount of $940,000 from available reserve funds to fund the requested property acquisition loan.
https://santabarbaraca-gov.zoom.us/webinar/register/WN_cGIoDBo4TIKhJ4afaewT5Q 09/13/2022 Santa Barbara City Council Final Agenda Page 2 REGULAR CITY COUNCIL MEETING – 2:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CEREMONIAL ITEMS

1. Subject: Employee Recognition – Service Award Pins (120.04) Recommendation: That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through September 30, 2022.

2. Subject: National Preparedness Month: September 2022 (120.04)

CHANGES TO THE AGENDA

PUBLIC COMMENT

CONSENT CALENDAR

3. Subject: Approving the 2022-2024 Management and Professional Attorneys Salary Plans [Ordinance Adoption] (410.01)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Adopting the 2022-2024 Salary Plan Applicable to Unrepresented Managers and Professional Attorneys and the 2022- 2024 Salary Plan Applicable to Certain Unrepresented Safety Managers.

4. Subject: Waterfront Department Lease Agreement with the Regents of the University of California for Dock Space in the Harbor [Ordinance Introduction; Agreement] (330.04)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Authorizing the Waterfront Director to Execute a Five Year Lease Agreement with One Five-Year Option with the Regents of the University of California, for 5,563 Square Feet of Water Area Located at 139 Cabrillo Boulevard, Commencing Upon the Effective Date of the Enabling Ordinance.

5. Subject: July 2022 Investment Report (260.02)
Recommendation: That Council accept the July 2022 Investment Report. 09/13/2022 Santa Barbara City Council Final Agenda Page 3

6. Subject: Recruitment for Advisory Groups (140.02)
Recommendation: That Council:

A. Authorize and direct the City Clerk’s Office to accept applications through Monday, October 10, 2022, at 5:00 p.m. to fill scheduled vacancies on various City Advisory Groups and the unscheduled vacancies resulting from resignations received in the City Clerk’s Office through Wednesday, September 21, 2022;
B. Direct scheduling of City Council interviews of applicants for vacancies on various City Advisory Groups on Tuesday, November 1, 2022, at 4:00 p.m. (Estimated Time), Tuesday, November 8, 2022, at 4:00 p.m. (Estimated Time), and Tuesday, November 15, 2022, at 6:00 p.m. (Estimated Time); and
C. Direct scheduling of City Council appointments to fill the vacancies on various City Advisory Groups on Tuesday, December 6, 2022.

This concludes the Consent Calendar.

REPORT FROM THE FINANCE COMMITTEE

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ADMINISTRATOR

7. Subject: Communications Office Outreach Update and Website Test Drive (170.04)
Recommendation: That Council receive an annual update on implementation of the City’s communication efforts and website launch.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS

PUBLIC COMMENT (IF NECESSARY)
09/13/2022 Santa Barbara City Council Final Agenda Page 4

CLOSED SESSION

8. Subject: Conference with City Attorney – Existing Litigation – Gov. Code §54956.9(d)(1) (160.03)
Recommendation: That Council hold a closed session to consider pending litigation pursuant to subsection (d)(1) of section 54956.9 of the Government Code and take appropriate action as needed.

The pending litigation is Kenneth Young v. City of Santa Barbara, et al. SBSC Case No. 21CV04618.

SCHEDULING: Duration 15 mins; anytime
REPORT: None anticipated

ADJOURNMENT

CITY OF SANTA BARBARA

SPECIAL FINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: September 13, 2022 Eric Friedman, Chair
TIME: 12:00 PM Alejandra Gutierrez
PLACE: David Gebhard Public Meeting Room Meagan Harmon
630 Garden Street
Rebecca Bjork Keith DeMartini
City Administrator Finance Director
Members of the public may participate in person or via Zoom. Zoom instructions are below.  Web: (Participation via Zoom)
Register in advance for this webinar:
https://santabarbaraca-gov.zoom.us/webinar/register/WN_cGIoDBo4TIKhJ4afaewT5Q Webinar ID: 843 4689 5494
Passcode: 983949
After registering, you will receive a confirmation email containing information about joining the webinar.
 Telephone: Dial 1-669-900-6833, Enter Webinar ID: 843 4689 5494 (press *9 to raise/lower hand; press *6 to mute/unmute) REMOTE PUBLIC COMMENT: Members of the public wishing to speak must “raise their hand” in the Zoom platform by selecting the virtual hand icon when their item is called. The keyboard shortcut for this is Alt+Y for Windows and Option+Y for Macs. City staff will activate the speaker’s microphone when the speaker’s name is called. The speaker will then need to unmute themselves. They keyboard shortcut for this is Alt+M for Windows or Command-Shift-A for Macs.

For those who need accessibility accommodation in using the “raise hand” function and/or registering to participate in the Zoom session, please contact the Finance Department by 5:00 p.m. the day before the meeting for assistance. Additionally, a speaker may email [email protected] by 5:00 p.m. the day before a meeting, stating the item on which they wish to speak.

ITEMS FOR CONSIDERATION:

1. Subject: Parks and Recreation Department Financial Review Recommendation: That Finance Committee receive a presentation from staff on the Parks and Recreation Department’s programs and services, including sources of funding, expenditure analysis, and other operational topics.

File Code No. 120.03

2. Subject: Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units Recommendation: That the Finance Committee consider and recommend that City Council:

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Finance Committee
FROM: Administration Division, Parks and Recreation Department SUBJECT: Parks and Recreation Department Financial Review RECOMMENDATION:

That the Finance Committee receive a presentation from staff on the Parks and Recreation Department’s programs and services, including sources of funding, expenditure analysis, and other operational topics.

DISCUSSION:

On June 14, 2022, the Finance Committee received a presentation from Finance staff regarding the Fiscal Sustainability Initiative. Finance staff presented an overview of a number of budgetary and financial challenges that the City has faced in recent years. In order to address these fiscal challenges in the long-term, staff initiated a Fiscal Sustainability Initiative to develop recommendations and solutions to ensure the City continues to meet the needs of the Santa Barbara community now and for many years to come. The objectives of this initiative are to identify and assess options that will increase revenues, create efficiencies, eliminate redundancies, and make continual process improvements that may ultimately reduce costs.

As part of the Fiscal Sustainability Initiative, the Community Development, Parks and Recreation, and Library departments, and possibly other departments, are scheduled to provide informational presentations to the Finance Committee.

At this second Fiscal Sustainability Initiative departmental presentation, the Parks and Recreation Department will provide information on the programs and services provided by the department, how they are funded, which priorities are fully funded, and which ones are legally mandated versus discretionary functions, among other topics.

BUDGET/FINANCIAL INFORMATION:

There is no budgetary or financial impact associated with this item.

Agenda Item No. 1
File Code No. 570.05
Finance Committee Agenda Report
Parks and Recreation Department Financial Review
September 13, 2022

Page 2 ends

PREPARED BY: Tina Nelson, Parks and Recreation Business Manager SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office

CITY OF SANTABARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Finance Committee Members
FROM: Housing and Human Services Division, Community Development Department
SUBJECT: Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units
RECOMMENDATION: That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement to the Housing Authority of the City of Santa Barbara in the Amount of $940,000 to be Secured by a Deed of Trust for the Acquisition of Property Located at 602 and 619 Kentia Avenue, and the Affordability Control Covenant Imposed on Real Property, and Authorize the Community Development Director to Execute Such Agreements and Related Documents, Subject to Approval as to Form by the City Attorney, as Necessary; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 22-059, Adopting the Budget for Fiscal Year 2023, to Approve an Increase in Fiscal Year 2023 Expenditure Appropriations in the City Affordable Housing Fund in the Amount of $940,000 from Available Reserve Funds to Fund the Requested Property Acquisition Loan.

EXECUTIVE SUMMARY:

The Housing Authority of the City of Santa Barbara (HACSB) has been a valuable City partner, serving as both an award-winning affordable housing developer and operator for over 50 years in the Santa Barbara community. The agency provides access to muchneeded affordable housing that would otherwise not exist for lower-income households. In an effort to preserve existing Section 8 affordable housing, HACSB is requesting $940,000 in loan funding from the City to acquire two properties located at 602 and 619 Kentia Agenda Item No. 2
File Code No. 660.04
Finance Committee Agenda Report
Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units
September 13, 2022

Page 2 ends

Avenue with eight units that provide housing to special needs/disabled low-income residents (Attachment 1). HACSB is proposing to purchase the property from the owner utilizing seller carryback financing and the requested City funding. If approved, the City will be able to record a 90-year affordability covenant to restrict the units to low-income tenants in order to secure the affordable housing for years to come.

DISCUSSION:

Background
HACSB was created as a political arm by the Santa Barbara City Council in 1969 with a mission of creating safe, affordable, and quality housing opportunities for families and individuals while promoting self-sufficiency and neighborhood revitalization. HACSB currently serves over 3,000 households largely composed of working families, seniors on fixed incomes, and persons with disabilities.

Proposal
Property
The property proposed for acquisition is two parcels with a combined total of approximately 12,197 square feet. Together, they contain eight residential units—two one-bedroom units and six two-bedroom units. The properties have been very well maintained and appear to have only minor immediate repair needs that will be covered by HACSB. All eight of the units have been renovated and have new kitchen cabinets, flooring, etc. 602 Kentia Avenue
The site area is 6,534 square feet. The fourplex (two units upstairs and two units downstairs) was built in 1963. It is a stucco building with a composition shingle roof. The building contains two one-bedroom/one-bathroom units and two two-bedroom/onebathroom units. The building contains 2,868 net rentable square feet of residential space (717 square foot average unit size).
619 Kentia Avenue
The site area is 5,663 square feet. The fourplex (two units upstairs and two units downstairs) was built in 1960. It is a stucco building with a composition shingle roof. The building contains four two-bedroom/one-bathroom units. The building contains 3,060 net rentable square feet of residential space (765 square foot average unit size).

Leasing and Tenancy
These two properties have been owned by the Gonzalez Trust since July 26, 1994. The original owners passed away, leaving their daughter, Janette Johnson, as the main heir.

Finance Committee Agenda Report
Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units
September 13, 2022

Page 3 ends

She has continued her parents’ tradition of leasing the apartments to clients of the Coalition for Housing Accessibility, Needs, Choices and Equality (CHANCE Housing), a local social service nonprofit that helps adults and children with intellectual, cognitive, and developmental disabilities find and maintain affordable, accessible community-based housing.

Currently, all eight units are occupied by tenants placed through CHANCE Housing who are Section 8 program participants. If successful in purchasing the property, the Housing Authority intends to fill any future vacancies using the same method through CHANCE Housing and project basing the property with Section 8 vouchers.

Summary of Costs
The current owner obtained appraisals of both properties in July of 2021. On a combined basis, the properties were valued at $3,400,000 ($425,000 per unit). The City plans to receive an updated appraisal that will likely support the planned purchase price of $3,500,000. The seller has indicated an interest and willingness to provide seller financing for the acquisition. The Housing Authority has signed a purchase agreement at $3,500,000 with $2,600,000 of seller financing. The requested loan amount of $940,000 would make up much of the remaining gap. Any other funds needed to close would be covered by the Housing Authority from its own reserves. The breakdown of sources and uses are as follows:

Sources: Amount Amount Per Unit
Seller Financing $ 2,600,000 $ 325,000
City Affordable Housing Fund $ 940,000 $ 117,500
HACSB Equity $ 3,750 $ 469
Total Sources: $ 3,543,750 $ 442,969
Uses:

Purchase Price $ 3,500,000 $ 437,500
Escrow Costs $ 43,750 $ 5,469
Renovation Costs $ 0 $ 0
Total Uses: $ 3,543,750 $ 442,969
Finance Committee Agenda Report
Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units
September 13, 2022

Page 4 ends

Funding Request
HACSB is seeking a loan to acquire the Property for the purpose of retaining the housing of the current special needs/disabled low-income residents to prevent the possibility of the property being sold on the open market and the tenants losing their housing.

HACSB Loan
The buyer and seller have agreed to a purchase price of $3,500,000 for the two properties and are currently in escrow. HACSB will make monthly payments in the amount of $12,537.11 to the seller for a seller carryback loan of $2,600,000 at an annual interest rate of five percent amortized over a 40-year term. A balloon payment for the full remaining balance will be made at the end of the fifteenth year.

City Loan
HACSB requests funding from the City in the amount of $940,000 to cover the $900,000 down payment and $40,000 to be applied toward escrow costs. If approved, the proposed $940,000 will be in the form of a City loan with a 30-year term bearing 4.5 percent annual interest and a maturity date of 2052. Payments on the loan will be due on a “residual receipts” basis. No payments will be due until the net income of the Project is sufficient to support such payments, after payment of necessary operating expenses and debt service.

Any unpaid balance remaining at the end of the 30-year term is due and payable in full.

These terms are typical of affordable housing loans. A deed of trust will be recorded against the property to secure the City loan.

There are sufficient funds available for this Project from reserves in the City’s Affordable Housing Fund, which holds repayments from past redevelopment loans. This Project would increase the number of affordable housing units in the City’s affordable housing portfolio, which is an important goal of the City’s housing programs.

Project Budget
The Housing Authority will continue to utilize Project-Based Section 8 vouchers on all eight residential units. A proposed operating pro forma of the project is illustrated in Attachment 2, and the allowable increases in Section 8 standard rents that will be applied to the Project are shown in Attachment 3.

Long-Term Affordability
As a condition for the City’s loan, a City Affordability Control Covenant Imposed on Real Property (Covenant) will be recorded concurrently with the required loan documents Finance Committee Agenda Report
Loan to Housing Authority for $940,000 for Acquisition of Property Located at 602 and 619 Kentia Avenue to Preserve Affordable Housing Units
September 13, 2022

Page 5 ends

requiring that the Project remain affordable to low-income residents for 90 years. The Housing Authority has several other projects with the City and has always maintained full compliance with the City’s affordability and reporting requirements.

Conclusion
Staff supports the proposed loan request, because this Project contributes to the City’s goals as outlined in the City’s General Plan Housing Element, Housing Opportunities Policy, Section H2, which states, “Promote equal housing opportunities for all segments of the community, with special emphasis given to extremely low, very low, low, moderate, middle income and special needs households.”
The Housing Authority has an excellent record of providing successful affordable housing projects to help address the needs of the community and provides permanent housing opportunities for community members who would otherwise be unable to secure affordable housing.

Staff requests that the Finance Committee recommend that City Council approve the $940,000 loan to acquire the property located at 602 and 619 Kentia Avenue in order to continue to provide the much-needed affordable housing units for the special needs/disabled low-income tenants.

BUDGET/FINANCIAL INFORMATION:

There are sufficient funds available in the Affordable Housing Fund reserve to fully fund the proposed $940,000 City loan. The Affordable Housing Fund has approximately $2.3 million in available reserve funds. If the proposed $940,000 City loan is approved, the Affordable Housing Fund will be left with approximately $1.36 million in available reserve funds.

ATTACHMENTS: 1) Housing Authority’s Request Letter
2) Operating Pro Forma
3) Current Rent Roll
4) Draft Ordinance
5) Draft Resolution
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office
June 28, 2022
Ms. Laura Dubbels
Housing and Human Services Manager
City of Santa Barbara Community Development
630 Garden Street
Santa Barbara, CA 93101
RE: REQUEST FOR GRANT OF FUNDS FOR ACQUISITION OF TWO APARTMENT COMPLEXES USED TO HOUSE SPECIAL NEEDS/DISABLED RESIDENTS LOCATED AT 602 AND 619 KENTIA AVENUE, SANTA BARBARA Dear Laura:

The Housing Authority is requesting a grant of HOME-ARP funds in the total amount of $940,000 for the acquisition of two apartment properties which house special needs/disabled residents. If the Housing Authority was not to be the buyer, there is a good chance that the property would be acquired by a private market investor, increasing the risk that these vulnerable residents would be displaced from their housing and become homeless.

Description of the Project
Both properties are located on Kentia Avenue on the west side of the city of Santa Barbara. Together, they contain 8 residential units – 2 one-bedroom units and 6 two-bedroom units. The properties have been very well maintained. All eight of the units have been renovated and have new kitchen cabinets, flooring, etc. While a more detailed inspection will be done as part of closing due diligence, a recent walk-through by Housing Authority staff resulted in no identified immediate repair needs at either of the properties. 602 Kentia has the Assessor Parcel Number of 043-050-007. The site area is 6,534 square feet. The fourplex (two units upstairs and two downstairs) was built in 1963. It is a stucco building with a composition shingle roof. The building contains 2 one-bedroom/one-bathroom units and 2 two-bedroom/one-bathroom units. The building contains 2,868 net rentable square feet of residential space (717 square foot average unit size). 619 Kentia has the Assessor Parcel Number of 043-050-013. The site area is 5,663 square feet. The fourplex (two units upstairs and two downstairs) was built in 1960. It is a stucco building with a composition shingle roof. The building contains 4 two-bedroom/one-bathroom units. The building contains 3,060 net rentable square feet of residential space (765 square foot average unit size).

Leasing and Tenancy
These two properties have been owned for decades by the Gonzalez Trust dated July 26, 1994. The original owners have passed away, leaving their daughter, Janette Johnson, as the main heir. She has continued the tradition started by her parents of leasing the apartments to clients of the Coalition for Housing Accessibility, Needs, Choices and Equality (CHANCE Housing). This is a local non-profit social service organization which helps adults and children with intellectual, cognitive, and developmental disabilities find and maintain affordable, accessible community-based housing.

Attachment 1

Page 2 ends

Letter to Laura Dubbels
June 28, 2022
At the current time, all of the eight units are occupied (the one vacant unit was recently leased). All of the existing tenants were sourced through CHANCE Housing and are Section 8 program participants. If successful in purchasing the property, the Housing Authority intends to fill vacancies using the same method through CHANCE Housing and project basing the property with mainstream vouchers. We are prepared to record a restrictive covenant on the properties.

There is some upside available in the current rents as compared to the current Section 8 payment standard rents.

The current one-bedroom apartments are rented at $1,855 per month. This compares to the current Section 8 payment standard of $2,372. The two-bedroom units are rented at an average monthly rent of $2,083. This compares to the current Section 8 payment standard of $2,767.

Summary of Cost:

The current owner obtained appraisals of both properties in July of 2021. On a combined basis, the properties were valued at $3,400,000 ($425,000 per unit). We plan to receive an updated appraisal that we anticipate will support the planned purchase price of $3,500,000. The seller has indicated an interest and willingness to provide seller financing for the acquisition. The attached economic proforma analysis reflects the current status of negotiations, if the Housing Authority is able to sign a purchase agreement at $3,500,000 and arrange for $2,600,000 of seller financing, the requested grant amount of $940,000 would make up much of the remaining gap. Any other funds needed to close would be covered by the Housing Authority from its own reserves.

Attachments
Attached please find:

1. Recent preliminary title reports for both properties;

2. Recent appraisals for both properties, which include photographs; and

3. The Housing Authority’s economic proforma analysis.

I am sure you will have further questions so please let me know what additional information you will need.

Thank you for your consideration of this grant request.

Sincerely,
Dale Fathe-Aazam
Director of Property, Development and Administration
cc: Rob Fredericks
Skip Szymanski
Tracey Taylor
Clarissa Montenegro
Proforma 602 Kentia 602 Kentia 619 Kentia 619 Kentia Combined 2021 Actual Projected 2021 Actual Projected 2021 Actual Projected Monthly Yearly Monthly Yearly Monthly Yearly Monthly Yearly Yearly Yearly Income $ 7,662 $ 91,947 $ 10,278 $ 123,336 $ 7,637 $ 91,640 $ 11,068 $ 132,816 $ 183,587 $ 256,152 Rental Income $ $ $ $ $ $ $ $ $ $
Laundry/Other Income
$ 7,662 $ 91,947 $ 10,278 $ 123,336 $ 7,637 $ 91,640 $ 11,068 $ 132,816 $ 183,587 $ 256,152 Gross Income $ $ $ (514) $ (6,167) $ $ $ (553) $ (6,641) $ $ (12,808) Vacancy rate @ 5.00%
$ 7,662 $ 91,947 $ 9,764 $ 117,169 $ 7,637 $ 91,640 $ 10,515 $ 126,175 $ 183,587 $ 243,344 Effective GroSs Income
Expenses $ 125 $ 1,499 $ $ $ 228 $ 2,737 $ $ $ 4,236 $
Property Tax
$ 62 $ 747 $ 185 $ 2,218 $ 82 $ 988 $ 185 $ 2,218 $ 1,735 $ 4,436 Insurance $ 5,294 $ 488 $ 5,858 $ 305 $ 3,661 $ 526 $ 6,309 $ 8,955 $ 12,167 Management Fee 5% $ 441
$ 400 $ 4,802 $ $ 463 $ 5,558 $ $ 10,360
Utilities $ $ 97 $ 1,159 $ $ $ 97 $ 1,159 $ $ 2,318
Edison $
$ $ $ 59 $ 706 $ $ $ 59 $ 706 $ $ 1,412
Gas $ $ 277 $ 3,326 $ $ $ 291 $ 3,492 $ $ 6,818
Sewer and Water $
$ $ $ 88 $ 1,058 $ $ $ 93 $ 1,111 $ $ 2,169
Trash $ 120 $ 1,440 $ 206 $ 2,470 $ 123 $ 1,480 $ 206 $ 2,470 $ 2,920 $ 4,940 Gardening
Maintenance and Repairs $ 376 $ 4,508 $ 500 $ 6,000 $ 292 $ 3,499 $ 500 $ 6,000 $ 8,007 $ 12,000 General and Administrative $ 161 $ 1,929 $ 50 $ 605 $ 14 $ 164 $ 50 $ 605 $ 2,093 $ 1,210 $ $ $ 100 $ 1,200 $ $ $ 100 $ 1,200 $ $ 2,400
Reserves for Replacement
Total operating Expenses $ 1,685 $ 20,219 $ 2,050 $ 24,600 $ 1,507 $ 18,086 $ 2,106 $ 25,270 $ 38,306 $ 49,870 $ 5,977 $ 71,728 $ 7,714 $ 92,569 $ 6,129 $ 73,554 1$ 8,409 $ 100,905 $145,281 $193,474 Net operating Income
• •
Debt Service
$ 150,445 $ 150,445
Cash Flow After Debt Service
$ (5,164) $ 43,029
Debt Service Coverage Ratio

0.97 1.29
./
Attachment 2

ATTACHMENT 4
1 ORDINANCE NO.____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A LOAN AGREEMENT

TO THE HOUSING AUTHORITY OF THE CITY OF
SANTA BARBARA, IN THE AMOUNT OF $940,000 TO BE

SECURED BY A DEED OF TRUST FOR THE
ACQUISITION OF PROPERTY LOCATED AT 602 AND
619 KENTIA AVENUE, AND THE AFFORDABILITY

CONTROL COVENANT IMPOSED ON REAL

PROPERTY, AND AUTHORIZE THE COMMUNITY

DEVELOPMENT DIRECTOR TO EXECUTE SUCH

AGREEMENTS AND RELATED DOCUMENTS, AS

NECESSARY
WHEREAS, HOUSING AUTHORITY (“Owner”) is acquiring real property commonly known as 602 and 619 Kentia Avenue in the City of Santa Barbara ("Property); and
WHEREAS, by minute action on September 20, 2022, the City Council approved a 30-year loan in the amount of Nine Hundred Forty Thousand Dollars ($940,000) from the Affordable Housing Fund (“City Loan”); and
WHEREAS, in exchange for the City Loan, Owner and City agree to record an Affordability Control Covenant imposed on Real Property restricting the rental of the Property to Low-Income residents (“Covenant”) for a total of ninety (90) years to comply with the City’s Affordable Housing Policies and Procedures; and WHEREAS, on September 20, 2022, the City Council, introduced and subsequently adopted an ordinance approving the City Loan, Deed of Trust and Covenant; and
ATTACHMENT 4
2 WHEREAS, the City Loan is secured by the Deed of Trust recorded in the office of the County Recorder on ________, 2022, as Instrument No. __________________of official records for the purpose of securing Owner’s obligations under the City Loan; and WHEREAS, Owner agrees to comply with Covenant recorded in the office of the County Recorder on _________, 2022, as Instrument No. ____________ of official records.

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

In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, an Ordinance of the Council of the City of Santa Barbara approving the City Loan, Deed of Trust and Covenant is hereby approved.

ATTACHMENT 5
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 22-059,
ADOPTING THE BUDGET FOR FISCAL YEAR 2023, TO
APPROVE AN INCREASE IN FISCAL YEAR 2023

EXPENDITURE APPROPRIATIONS IN THE CITY

AFFORDABLE HOUSING FUND IN THE AMOUNT OF
$940,000 FROM AVAILABLE RESERVE FUNDS TO FUND
THE REQUESTED PROPERTY ACQUISITION LOAN.

WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2022; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2022;
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. 22-059, 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 2023, as adopted [or amended] by Resolution No. 22-059, is hereby amended as follows:

1. The Council approves of appropriating available reserve funds that exist in the Affordable Housing Fund into the Affordable Housing Fund budget in Fiscal Year 2023 in the amount of $940,000 in order to fund a loan to the Housing Authority of the City of Santa Barbara for the acquisition of property located at 602 and 619 Kentia Avenue to preserve affordable housing units.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Employee Recognition – Service Award Pins
RECOMMENDATION:

That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through September 30, 2022.

DISCUSSION:

The City appreciates the loyalty to the community and the dedication to public service that are demonstrated by City employees throughout the organization every day. Since 1980, the City Employees’ Recognition Program has recognized length of City Service. Service award pins are presented to employees for every five years of service. Those employees achieving 25 years of service or more are eligible to receive their pins in front of the City Council.

Attached is a list of those employees who will be awarded pins for their service through September 30, 2022.

ATTACHMENT(S): September 2022 Service Awards
PREPARED BY: Talhia Dorado, Administrative Specialist
SUBMITTED BY: Rebecca Bjork, City Administrator
APPROVED BY: City Administrator's Office
Agenda Item No. 1
File Code No. 120.04

ATTACHMENT
September 2022 SERVICE AWARDS
September 13, 2022 Council Meeting
5 Years
Morgan Downey, Police Property Evidence Assistant, Police Department Justine Baker, Parking Enforcement Officer, Police Department Chia Yen, Library Systems Technician I, Library Department Debra Rose, Administrative Specialist, Airport Department Noe Lopez, Airport Security Aide, Airport Department
Kyle Langelier, Waterfront Maintenance Coordinator, Waterfront Department 10 YEARS
John Doimas, Assistant City Attorney III, City Attorney’s Office Taylor Benson, Library Technician, Library Department
Antoine Kyle, Grounds Maintenance Worker I, Parks & Recreations Department 15 YEARS
Erik Uchida, Human Resources Technician, Human Resources James Lombardo, Police Officer, Police Department
Sarita King, Administrative Assistant, Public Works Department Adam Hendel, Principal Engineer, Public Works Department Daniel Takacs, Water Treatment Plant Operator III, Public Works Department Chris Schmidtchen, Wastewater Treatment Plant Operator III, Public Works Department James Rumbley, Project Manager, Parks & Recreation Department Luis Quesada, Grounds Maintenance Crew Leader, Parks & Recreation Department 20 YEARS
Randell Graham, Maintenance Worker II, Public Works Department Robert Cerda, Treatment Plant Technician, Public Works Department 25 YEARS
Ronald Liechti, Fire Business Manager, Fire Department
Susan Bardick, Senior Recreation Supervisor, Parks & Recreation Department Agenda Item No. 2
File Code No. 120.04

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Approving the 2022-2024 Management and Professional Attorneys Salary Plans
RECOMMENDATION:

That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Adopting the 2022-2024 Salary Plan Applicable to Unrepresented Managers and Professional Attorneys and the 2022-2024 Salary Plan Applicable to Certain Unrepresented Safety Managers.

DISCUSSION:

The Ordinance adopting the 2022-2024 Salary Plan for Unrepresented Managers and Professional Attorneys and the Plan Applicable to Certain Unrepresented Safety Managers is presented here for Council adoption.

Additionally, a corrected version of the “Management Performance and Compensation Plan” is attached to this Council Agenda Report as Attachment 1. Due to a drafting error, the version of this document that was presented to Council with the August 30, 2022 agenda included incorrect language in section 4 of the document. The corrected version includes the language: “The City will maintain Manager Classifications fifteen (15) percent above the highest paid subordinate classification salary.” The previous version stated erroneously, that “The City will strive to maintain” the classifications.

BUDGET/FINANCIAL INFORMATION:

There are no additional fiscal impacts with this language change as it is not possible, at this time, to determine what potential future salary adjustments may be required to ensure manager classifications are 15% above the highest paid subordinate classification salary.

Agenda Item No. 3
File Code No. 410.01
Council Agenda Report
Approving the 2022-2024 Management and Professional Attorneys Salary Plans September 13, 2022

Page 2 ends

ATTACHMENT(S): 1. Management Performance and Compensation Plan PREPARED BY: Sam Ramirez, Labor Relations Manager
SUBMITTED BY: Wendy Levy, Human Resources Director
APPROVED BY: City Administrator’s Office
1 Attachment 1

CITY OF SANTA BARBARA

MANAGEMENT

PERFORMANCE
AND

COMPENSATION
PLAN
(REVISED September 13, 2022)

MANAGEMENT

PERFORMANCE AND COMPENSATION PLAN

TABLE OF CONTENTS
COMPENSATION PLAN .................................................................................1

1. BACKGROUND...............................................................................................1

2. PARTICIPANTS...............................................................................................1

3. COMPENSATION PLAN FUNCTION ............................................................2

4. GOALS OF MANAGEMENT COMPENSATION PLAN ................................2

5. MARKET COMPARISON STRATEGY .........................................................2

6. PLAN DESIGN - CONTROL POINT (C/P) PAY SYSTEM ............................3

7. SALARY CONTROL POINT ADJUSTMENT PROCESS..............................3

8. SALARY RANGE ADJUSTMENT RECOMMENDATIONS ..........................3

9. PAY FOR PERFORMANCE ...........................................................................3

10. SPECIAL ASSIGNMENT PAY........................................................................4 PERFORMANCE EVALUATION SYSTEM.....................................................5

11. GOALS OF EVALUATION SYSTEM .............................................................5

12. PERFORMANCE EVALUATION PERIOD.....................................................5

13. AUTHORITY TO EVALUATE PERFORMANCE ...........................................5

14. INDIVIDUAL PERFORMANCE GOALS.........................................................5

15. CITYWIDE PERFORMANCE OBJECTIVES .................................................6

16. RATINGS .........................................................................................................6

17. PROMOTIONS AND NEW APPOINTMENTS TO MANAGEMENT .............7 BENEFITS ........................................................................................................8

18. BENEFIT GROUPS I AND II...........................................................................8

19. HEALTH AND WELFARE BENEFITS ...........................................................8 A. CAFETERIA PLAN CONTRIBUTION..................................................8 B. DOMESTIC PARTNERSHIP BENEFITS.............................................9 C. EMPLOYEE ASSISTANCE PROGRAM (EAP)...................................9 D. LIFE INSURANCE................................................................................9 E. LONG TERM DISABILITY..................................................................10 F. SHORT-TERM DISABILITY...............................................................10 G. ACCIDENT/CANCER INSURANCE ..................................................10 H. TAX-QUALIFIED EXPENSE ACCOUNTS ........................................10 I. EXECUTIVE CAR ALLOWANCE ......................................................10

20. TIME OFF AND LEAVE BENEFITS.............................................................10 A. VACATION & SICK LEAVE ADVANCED CREDIT UPON HIRE
............................................................................................................10 B. VACATION..........................................................................................11 C. LEGAL HOLIDAYS.............................................................................12 D. PERSONAL LEAVE DAYS ................................................................12 E. MANAGEMENT LEAVE.....................................................................12 F. SICK LEAVE.......................................................................................13 G. NON-REPLENISHABLE SICK LEAVE ..............................................13 H. CATASTROPHIC LEAVE – See Appendix A ....................................14 I. LEAVES OF ABSENCE .....................................................................14

21. RETIREMENT BENEFITS ............................................................................15 A. RETIREMENT PLAN (PERS) ............................................................15 B. DEFERRED COMPENSATION .........................................................15 C. SERVICE CREDIT FOR SICK LEAVE UPON RETIREMENT .........15 D. RETIREE MEDICAL INSURANCE CONTRIBUTION .......................16

22. EDUCATION BENEFITS...............................................................................17 A. LEAP TRAINING PROGRAM ............................................................17 B. EDUCATIONAL REIMBURSEMENT PROGRAM.............................17 C. MANAGEMENT MASTER’S DEGREE PROGRAM – See
Appendix B..........................................................................................17

23. HOUSING BENEFITS ...................................................................................17 A. COASTAL HOUSING PARTNERSHIP (CHP) ..................................17 B. CALPERS MEMBER HOME LOAN PROGRAM...............................17 SPECIAL PROVISIONS.................................................................................17

24. UNREPRESENTED POLICE SAFETY MANAGEMENT
EMPLOYEES.................................................................................................18

25. UNREPRESENTED FIRE SAFETY MANAGEMENT EMPLOYEES.........18 APPENDIX A: Catastrophic Leave Policy- Management
APPENDIX B: Management Master’s Degree Program
APPENDIX C: ICMA CODE OF ETHICS
1 COMPENSATION PLAN

1. BACKGROUND
After considerable evaluation and staff review, and approval by the City Council, a new Management Performance and Compensation Plan was adopted in the 1977-1978 fiscal year.

Through an ongoing series of revisions this plan continues to effectively direct the evaluation and compensation of the City's management employees.

This Management Performance and Compensation Plan emphasizes the need for a high level of performance by managers and provides adequate incentives and rewards for said performance.

This plan recognizes that:

1. Managers are not extended technicians, but rather are individuals with the unique responsibility for analyzing and synthesizing the input of subordinates, peers, and the public in making decisions regarding the allocation of human and financial resources for which they should be held accountable; and

2. A compensation plan for management should not just provide a financial gain for employees, but should also create direct benefits to the City organization and the public it serves.

The overall objective of the plan is to establish regularly utilized, practical, and uniform performance measurements and related compensation procedures.

2. PARTICIPANTS
Management positions, subject to the Management Performance and Compensation Plan, are regular (not hourly) positions designated as Management in the adopted Position and Salary Control Resolution.

Managers in a recognized bargaining unit (Police Management Association, Fire Management Association) are covered by compensation and benefits provisions of the Management Performance and Compensation Plan only to the extent outlined in the applicable labor agreement.

Some provisions of the Management Performance and Compensation Plan are applicable only to Police Safety Management and Fire Safety Management employees, and these are included in the designated “Special Provisions” section of this document.

Professional Attorneys are defined as the City Attorney, Assistant City Attorney III, Assistant City Attorney II, Assistant City Attorney I, and the Deputy City Attorney. The COLAs and benefits provided under this Compensation Plan apply to professional attorneys as specifically provided in the Professional Attorneys Compensation Plan adopted by the City Council. -2-
The Management Performance and Compensation Plan and the Professional Attorneys’ Compensation Plan, will be amended, as necessary, to include changes to compensation and benefits.

3. COMPENSATION PLAN FUNCTION
The primary function of the Management Performance and Compensation Plan is to regularly review and assess the City's compensation practices, carefully analyze labor market data and internal salary relationships among the various classes of work and, based on this analysis, assign a salary range to each classification and recommend modifications to the City's approach to compensation, as needed. This provides an integrated salary plan for all of the City's management classifications.

4. GOALS OF MANAGEMENT COMPENSATION PLAN
The main goal of the Management Compensation Plan is to attract and retain quality managers for service with the City of Santa Barbara. The compensation package is designed to deal effectively with the demand of the labor market and to keep up with the cost of living.

Individual City management employees should perceive the plan as recognizing personal performance, being motivational, and being consistently applied City-wide without regard to age, ancestry, color, mental or physical disability including HIV and AIDS, gender identity and expression, marital status, medical condition, national origin, race, religious belief, or sexual orientation. The Management Compensation Plan should be seen as flexible, rewarding exceptional performers, and allowing for the hiring of individual managers above entry level as necessary. The plan should be clearly understood by all City management employees and have participant acceptance.

The City will strive to maintain Manager Classifications fifteen (15) percent above the highest paid subordinate classification salary. For purposes of this Section, “salary” shall only include base pay at the maximum of the range for the classifications. The City shall review Manager Classifications in May of each fiscal year, and provide the Unit with a summary report of this review. If, during the fiscal year, a compaction situation is identified, the Unit shall inform the City, and Human Resources shall review the classification in question. It is the responsibility of the association to maintain and update accurate Manager-to-subordinate reporting relationship information in the City payroll system. The City shall provide a determination within 30 calendar days of notification from the Unit. Implementation of the salary adjustments will be effective the first pay period following Council approval of the mid-year or new fiscal year budget.

In addition, the plan should avoid being overly complex, not be perceived as negative, and should solve salary compaction or compression problems.

5. MARKET COMPARISON STRATEGY
-3-
The City of Santa Barbara's management compensation strategy provides policy guidance relative to the selection of labor market employers, and scope of external market surveys.

In overall terms, the City's comparison labor market should:
 Focus on full service coastal and/or urban cities, which are comparable to Santa Barbara with respect to budget, service structure, and service area population.  Include, when necessary, specialized markets for selected jobs; e.g. harbors, airports, utilities and parks and recreation.
 Recognize the impact of tourism on service demands.
 Recognize agencies located within a defined, competitive recruitment area within the Santa Barbara region, i.e. Ventura County area.

The City's preferred competitive position should be based on total cash compensation and should take into account the cost of living, especially as it relates to housing and difficulties in recruitment and retention of management staff.

6. PLAN DESIGN - CONTROL POINT (C/P) PAY SYSTEM
The design of the pay system is based on the control point pay concept. The control point (the top of the salary range) is the placement of a salary at the City's desired position relative to its labor market for any given position. City policy for managers entering City employment will be to pay within a 20% range of the control point salary. An individual manager's salary movement from salary at hire or promotion to the control point is to be based on merit and determined through the use of the management performance evaluation process.

7. SALARY CONTROL POINT ADJUSTMENT PROCESS
Salary control point adjustments are to be made periodically and may be based on a cost of living adjustment (COLA), external market survey data, anticipated labor market movement, maintaining salary differentials between management classes in a series, and/or maintaining salary differentials between managers and other subordinate classes. The City's ability to pay for adjustments will also be a consideration.

8. SALARY RANGE ADJUSTMENT RECOMMENDATIONS
Adjustments to existing salary ranges will be recommended by the City Administrator to the City Council. Management salary adjustments will be adopted by the City Council and reflected in the City’s official salary schedules.

9. PAY FOR PERFORMANCE
The City's management performance evaluation system will determine a manager's pay for performance. The guidelines and criteria for individual salary adjustments will be as follows:
-4-

COLA (RANGE) INCREASE
Cost-of-Living Adjustments (COLAs) are increases to management salary ranges recommended by the City Administrator. When a COLA increase adjustment is made to the salary range for a management position, management employees in that position who obtained an Overall Rating of “Successful” or “Exceptional Work” or “Needs Improvement” on their last annual Management Performance Evaluation will receive the same adjustment to their individual salaries. COLAs may be scheduled in advance through adoption of a management salary plan. Approved COLAs are scheduled as follows:
1) Police Captains and Police Lieutenants: Police Lieutenants and Police Captains will receive salary increases as provided in the applicable Police Management Association labor agreement.
2) Fire Battalion Chiefs and the Fire Division Chief-Prevention: will receive salary increases as provided in the applicable Fire Management Association labor agreement.
3) Other managers, including the Fire Chief, Fire Division Chief- Operations, Police Chief and Deputy Police Chief, will receive salary increases as provided by Salary Plan(s) adopted by the City Council by ordinance.

MERIT INCREASE
Eligibility for a merit adjustment is for those individuals who are not already at the Control Point (top of the range) for their position. Merit increases are individual increases, based on each manager’s performance, allowing the managers to work toward the Control Point.

The merit increase is based on the Evaluator’s assessment of the Manager’s Overall Rating for the evaluation period. The Manager qualifies for a merit increase only if he/she obtains an Overall Rating of “Successful” or “Exceptional Work”. The merit increase may be between 0 to 10 %.The exact percentage of merit awarded will be determined by the Evaluator with appropriate approval.

Any merit increase of greater than 5% must first be approved by the City Administrator.

A manager's actual salary may not exceed (unless "Y-rated") the Control Point (top of the salary range). A manager's actual salary may fall below the minimum set for a range if performance is “Unacceptable”. An employee whose salary falls below the minimum shall not be entitled to receive COLA or merit increases until performance reaches a level which would justify such an increase.

10. SPECIAL ASSIGNMENT PAY
When a Manager is temporarily assigned special duties or a special project, that employee may be eligible for Special Assignment Pay. In these cases, the Management employee may not be working in an "Acting" capacity, where he or she is performing the essential functions and duties -5-
of another management classification, but is given a special assignment or a special project above and beyond what is expected from his/her current job classification.

The City Administrator or his/her designee will determine the special pay rate, if any, ranging from 1% to 20% of the manager's salary. This special pay provision may be provided to the management employee on a temporary basis, reviewed at least annually and is not to exceed two years on the same assignment. The completion of a special pay assignment project may be followed by new special pay assignments.

PERFORMANCE EVALUATION SYSTEM

11. GOALS OF EVALUATION SYSTEM
The key element of this compensation plan is the performance evaluation system. The effectiveness of the system is dependent upon the planning that supports it and may be measured by the quality of actual management performance. The primary purpose of the appraisal program is to motivate each manager to work at his/her fullest capacity. A secondary purpose is to provide a basis for rewarding management personnel in accordance with their individual performance and to identify those managers whose work is not in keeping with appropriate standards.

The City's management evaluation program is designed as a communications process which not only permits, but requires input and feedback from all organization levels in establishing goals, objectives, work responsibilities, and standards of performance measurement. The methods and techniques are intended to be applied uniformly in all departments and divisions. The program is flexible enough to be adaptable to the philosophy, characteristics, and operating methods of various organizational units. This plan establishes an accurate, objective, and reliable method of measuring performance that will benefit the City and develop the individual manager.

12. PERFORMANCE EVALUATION PERIOD
Annual management performance evaluation periods correspond to the July-June fiscal year.

Each manager's performance will be formally reviewed at mid-year and again following the end of the fiscal year, although the manager and evaluator have a continuing responsibility throughout the year to review performance progress.

13. AUTHORITY TO EVALUATE PERFORMANCE
Authority and responsibility for approving management performance goals, completing performance evaluations, and recommending merit increases will be assigned as follows:
o For department heads and City Administrator's staff, the City Administrator has the authority.
o For division managers, the department heads have the authority in consultation with the City Administrator.
o For all other management employees, the division managers have the authority in consultation with the department head.
-6-

14. INDIVIDUAL PERFORMANCE GOALS
At the beginning of each fiscal year a subordinate manager and his or her Evaluator will jointly develop the performance objectives for the subordinate manager in the upcoming fiscal year, including any:

1. “P3” Performance Program Objectives

2. Other Projects / Programs (or stages thereof) for Completion

3. Day to Day Operations Objectives

4. Professional Development Objectives (for Manager and his/her Staff) A measure (qualitative or quantitative) should be provided for each objective. At the end of the fiscal year, each manager's performance will be evaluated based, in part, upon the completion of the outlined responsibilities. The Evaluator will assign a performance rating to each objective.

At times, conditions outside the individual manager’s control will alter the manager's activities.

These adjustments and any corresponding changes to the manager’s individual performance goals should be discussed as they become apparent throughout the evaluation period.

15. CITYWIDE PERFORMANCE OBJECTIVES
In addition to the manager’s individual performance goals, each manager will be evaluated on performance related to important City-wide objectives and management skills, including but not limited to the following:

A. Section 2: Citywide Objectives: These are programs and interests that have been deemed to be important to the welfare of the whole City, and must be actively supported by all management personnel
o “P3” Performance Program Implementation
o Department/City-wide Communication
o Staff Development
o Diversity
o Injury/Illness and Prevention Program
B. Section 3: Management Skills Objectives: The development and effective use of these skills are deemed important for all management personnel o Budgeting / Financial Management
o Policy Development / Implementation
o Public and Community Relations
o Leadership
o Judgment
o Managing / Supporting Employees
o Encourage Creativity and Innovation
o Oral Communication / Presentation Skills
o Written Communication
-7-
The Evaluator will use his/her judgment as to the fit between the specific job skill and the manager’s job and assign a performance rating to each Citywide objective.

16. RATINGS
Each manager will receive an overall rating on his or her evaluation based on his or her performance. The Evaluator may consider factors such as the amount of time the manager has been in the job, the amount of previous or on-the-job training he/she has had, the type and complexity of projects he/she has been assigned, and the pace and complexity of the work environment in developing the overall rating.

The ratings, both for individual performance objectives and for the overall rating, are as follows:

Exceptional Work: Means the Manager’s overall performance, during this review period, has significantly exceeded expected levels of performance. This rating should be used sparingly to indicate exceptional performance (a breakthrough to a new higher level of accomplishment and/or unexpectedly superior performance on a special or emergency assignment.)
Successful: Means the Manager’s performance, during this review period, has made a contribution to the success of the department and the City, and indicates the achievement of competency in this skill area. The Manager consistently meets, and at times exceeds, expectations and performance standards. Performance is within the expected scope and is indicative of a competent manager. It is expected that managers who are performing both at and above expectations will receive this rating.

Needs Improvement: Means the Manager’s overall performance, during this review period, has been below the expected level of quality or quantity. The Manager needs to take steps to correct identified deficiencies.

Unacceptable: Means that on an overall basis the Manager has, during this review period, performed in a manner significantly below the level to be expected considering the manager’s previous experience, tenure in the class and the Manager’s duties and responsibilities, and that it appears to be reasonably certain that the manager is either unwilling or unable to perform successfully.

Not Applicable/ Not Observed: The skill or characteristic does not apply to this position, is new and not yet measurable, or the activity was not under the Manager’s control.

17. PROMOTIONS AND NEW APPOINTMENTS TO MANAGEMENT
The process for assimilating newly promoted or appointed managers into the evaluation system is as follows:
-8-

1. The initial performance goals will be developed during the first three (3) months of employment.

2. The beginning date of the evaluation period may be between one (1) and three (3) months from the date of employment as agreed to by the manager and his/her supervisor.

3. All evaluation periods must cover a period of at least three (3), but no more than twelve (12) months with the end of the evaluation being June 30.

4. The manager will be evaluated at the conclusion of each evaluation period (June 30).

5. The beginning salary for a management employee will be negotiated within the salary range for the position.

6. All subsequent changes in salary will be made based upon performance evaluation.

Salary adjustments, except for those hired between April 1 and July 1, will be as follows:
 If rating is “Successful” or “Exceptional Work”: COLA + (X/12 x Merit Increase) = % total salary increase, where X is the number of full months contained in the evaluation period for the last fiscal year.
 If rating is “Needs Improvement”: COLA only
 If rating is “Unacceptable”: Not eligible for salary increase.

Those not evaluated because they were hired between April 1 and July 1 will receive the amount of the COLA adjustment in order to maintain their relative position in the range.

BENEFITS

18. BENEFIT GROUPS I AND II
All management classifications will be designated as belonging to Benefit Group I or Benefit Group II. This designation will determine the amount/level of benefits that will accrue to each management employee.

Group I: City Administrator, Assistant City Administrator, all Department Heads.

Group II: All other management classifications.

19. HEALTH AND WELFARE BENEFITS
A. CAFETERIA PLAN CONTRIBUTION
-9-
Managers will receive a monthly contribution to the cafeteria plan for the purchase of health and welfare benefits and/or optional cash-out. The dollar value of full family medical and dental will be determined based on the premiums for the least expensive comprehensive plans.

The cafeteria plan amount will be periodically adjusted so that it is equal to no less than:

Group I Managers: Group II Managers:

Effective 1-1-2013 $1718 per month $1676 per month
Information about the benefits available and their cost will be distributed to all management employees at the beginning of each benefit year (i.e. calendar year). The City retains full and complete control over the selection, approval and administration of the City's group insurance program.

The benefits will be subject to the following rules:

1. Benefit selections must be made prior to the beginning of each benefit year.

Employee changes in benefit plan selections, such as adding or deleting coverage and/or dependents, may only be made in accordance with Section 125 of the Internal Revenue Code and City policy.

2. All benefits selected from the cafeteria plan must be paid for in full from the maximum benefit provided except when the maximum is insufficient to cover all insurance coverage selected. In such cases, the premium amount not funded by the City-provided benefit will be paid through an employee deduction applied against the medical premiums.

3. No unexpended dollar amounts associated with selected benefits may be disbursed to a terminating employee.

4. All benefit selections are subject to State and Federal rules, regulations, and laws regarding employee benefits and tax status. No guarantee is made regarding the tax-exempt status of any and all benefits presented or selected.

5. Management employees will be eligible for benefits coverage and the respective Group I or Group II monthly cafeteria plan contribution, on the first day of the month following their hire date.

B. DOMESTIC PARTNERSHIP BENEFITS
The cafeteria plan allowance can be used toward same sex and opposite sex domestic partner dependent coverage under the medical, dental, and vision plans, and any other plan where such coverage is allowed. In order to receive this benefit, domestic partners must be registered with the City Clerk’s Office and/or the Secretary of State of California, and the employee must provide proof of registration. The affected employee(s) will be responsible for all tax consequences of this benefit.

Additionally, Domestic Partners who are registered with the City Clerk’s Office and/or the Secretary of State of California are treated the same as spouses under all City policies related -10-
to employees’ families.

C. EMPLOYEE ASSISTANCE PROGRAM (EAP)
Managers and their families will have access to the City’s Employee Assistance Program for free confidential counseling services. This amount will not be counted against the cafeteria plan allowance.

D. LIFE INSURANCE
Life Insurance will be provided equal to an amount of one times annual salary. An equal amount will be provided for accidental death and dismemberment (ADD) coverage. This amount will not be counted against the cafeteria plan allowance.

E. LONG TERM DISABILITY
Each management employee will receive coverage under the City's long term disability insurance program. This amount will not be counted against the cafeteria plan allowance.

F. SHORT-TERM DISABILITY
Managers are eligible to participate in an optional Short-term Disability plan at their own cost.

G. ACCIDENT/CANCER INSURANCE
Managers are eligible to participate in an optional Supplemental Accident and Cancer insurance plan at their own cost.

H. TAX-QUALIFIED EXPENSE ACCOUNTS
The City offers several tax-qualified arrangements to allow managers to set aside money to pay for eligible expenses on a pre-tax basis. These include:
 Medical Flexible Spending Account
 Dependent Care Account
I. EXECUTIVE CAR ALLOWANCE
Executives are eligible for a monthly car allowance. This allowance is adjusted based upon the IRS mileage rate. Please contact the Finance Department for the current allowance.

J. CELL PHONE ALLOWANCE
Managers are eligible for $50.00 a month cell phone allowance if they are not issued a City paid for Cell Phone.

20. TIME OFF AND LEAVE BENEFITS
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A. VACATION & SICK LEAVE ADVANCED CREDIT UPON HIRE
a. An employee who is appointed from outside City of Santa Barbara government service within one (1) year of leaving employment with either the City of Santa Barbara or another city, county, state agency, federal agency or special district and who, in the opinion of the Human Resources Manager, possesses government experience directly related to the position to which he or she has been appointed, may be offered credit for years of prior service with the City of Santa Barbara and/or his or her immediate previous government employer in the following ways:
i. Vacation Accrual: At the discretion of the Human Resources Manager, the employee may be offered credit for up to the total number of prior full years of service at the City of Santa Barbara and/or his or her immediate previous government employer toward the initial vacation accrual rate. The employee will not be eligible to progress to a higher accrual rate until employee has the normal required minimum amount of City of Santa Barbara service for that accrual rate.
ii. Sick bank: At the discretion of the Human Resources Manager, the employee may be credited with up to 96 hours of sick leave. Thereafter, employee will accrue sick leave at the normal rate.
b. A former City of Santa Barbara employee reemployed within one year under Santa Barbara Municipal Code Section 3.16.320 will automatically qualify for the full vacation accrual credit under (i), above, for his or her prior City of Santa Barbara service. However, under no circumstance will prior accrued vacation balances cashed out to the employee upon termination be reinstated.

B. VACATION
Managers will accrue vacation as follows:

Years of Days
Service Per Year
Group I
0-3 160 hours
4-5 200 hours
6+ 224 hours
Group II
0-2 120 hours
3-5 160 hours
6-7 200 hours
8+ 224 hours
Vacation for management employees will be used within the following parameters:

1. The maximum vacation accrual will be 500 hours.
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2. The maximum vacation accrual may be waived if scheduled vacations are cancelled by the City for emergencies or cancelled by the manager due to the illness, injury, or personal emergency. The manager will submit to the City Administrator, via the Department Head, a memo requesting approval for the accrual beyond the maximum. The City Administrator may establish a deadline by which the manager must reduce the vacation accrual to at or below the maximum, or be subject to the accrual discontinuance provisions outlined in item #3 below.

3. Effective October 22, 2022, A manager whose vacation balances exceed the maximum accrual of 500 hours will not be eligible to accrue further vacation until such time as the manager has reduced his or her accrued leave balances through time off, catastrophic leave donation, or buy-back, to below the maximum accrual.

There is no retroactive grant of vacation compensation for the period of time the vacation compensation was at the cap.

4. In order to qualify for vacation cash-out, an employee must take a minimum of forty (40) hours of accrued leave time (personal leave, management leave, vacation leave, or any combination) during a fiscal year to be eligible to receive cash out of up to hundred (100) hours of vacation time for the same fiscal year. Vacation can only be "cashed out" in 10 hour increments (i.e. 10, 20, 20), and the amount to be cashed out will not exceed the employee's vacation balance at the end of the vacation year. Employees eligible for vacation cash out shall follow the procedures established by the City.

C. LEGAL HOLIDAYS
Paid holidays include:

January 1st (New Year's Day)
3rd Monday in January (M. L. King Jr.'s Birthday)
3rd Monday in February (President's Birthday)
March 31st (Cesar Chavez’s Birthday)
Last Monday in May (Memorial Day)
June 19th (Juneteenth)
July 4th (Independence Day)
1st Monday in September (Labor Day)
November 11th Veteran’s Day
4th Thursday in November (Thanksgiving Day)
4th Friday in November (Day following Thanksgiving)
December 25th (Christmas Day)
Paid holiday time is awarded based on regularly scheduled work day hours per holiday for a fulltime manager (pro-rated for part-time employees). When a holiday falls on a Saturday or Sunday the preceding Friday or following Monday, respectively, will be observed as a legal holiday.

Whenever a holiday occurs on a manager's regularly scheduled day off, the manager is entitled to an additional day off. Such day off shall be taken within sixty (60) calendar days, or shall be compensated at straight pay.
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D. PERSONAL LEAVE DAYS
Managers will be entitled to thirty-two (32) paid personal leave hours (pro-rated for part-time employees) each fiscal year per the following schedule:

On the payroll July 1st 32 hours
Hired between July 2 and October 1 24 hours
Hired between October 2 and Jan 1 16 hours
Hired between Jan 2 and April 1 8 hours
Personal leave days must be taken by the end of each fiscal year or lost. Personal leave will be scheduled on the same basis as vacation. In no case will managers be entitled to cash payment for personal leave days not taken.

E. MANAGEMENT LEAVE
The purpose of management leave is to provide a process for authorizing paid leave time, on a flexible basis, to management employees who are not eligible to receive overtime compensation or compensatory time off. Due to the nature of their positions, managers are required to place greater emphasis on the accomplishment of program objectives, rather than on the actual number of hours worked. Their activities are regulated by fulfilling program responsibilities rather than by scheduled hours. They may be required to periodically or routinely work long or irregular hours, and to attend various meetings and functions to fulfill the responsibilities of their positions.

Eligibility: This management leave policy applies to all regular management employees designated as being exempt from the overtime provisions of the Fair Labor Standards Act, subject to department head, City Attorney, or City Administrator approval, as outlined below.

Award: Each eligible management employee is awarded forty (40) hours of management leave (pro-rated for part-time employees) for the fiscal year as follows:

Managers on the payroll July 1 (inclusive) 40 hours
Managers hired between July 2 and October 1 (inclusive) 30 hours Managers hired between October 2 and January 1 (inclusive) 20 hours Managers hired between January 2 and April 1 (inclusive) 10 hours A manager on a Leave of Absence without Pay on July 1st will receive the Management Leave hours (prorated) when s/he returns to work.

The department head, City Attorney, or City Administrator may grant additional paid leave to each eligible management employee during the year. The amount of additional paid leave, if any, will be subject to discretion of the department head, City Attorney, or City Administrator.
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Use: Management Leave is scheduled like vacation. The leave provided by this program is not related to hours worked nor subject to accrual, and may not be carried over beyond the end of the fiscal year. Upon resignation or termination, a manager will not be entitled to any payout of management leave.

Approval: Administration of this policy is subject to the discretion and approval of the department head, except for City Attorney or City Administrator appointment positions, which are subject to the discretion and approval of the City Attorney or City Administrator respectively. Final resolution of any disputes arising from this policy will rest with the City Attorney or City Administrator as appropriate.

F. SICK LEAVE
Sick leave allowance will accrue at the rate of 8 hours per month.

G. NON-REPLENISHABLE SICK LEAVE
Management employees are eligible for non-replenishable sick leave. After five (5) years of continuous service, a manager may accumulate additional sick leave at the rate of sixteen (16) hours at full salary for each additional year of continuous service. The maximum accumulation is two hundred and forty (240) hours and is not replenishable. Non-replenishable sick leave hours may only be used after the manager’s entire regular sick leave bank is exhausted.

H. CATASTROPHIC LEAVE – See Appendix A
The management catastrophic leave policy allows managers to donate vacation time to the applicable leave banks of full-time and part-time employees who are incapacitated due to a catastrophic illness or injury or who must care for a spouse or child who has a catastrophic illness or injury. A catastrophic illness or injury is a severe illness or injury which is unusual, unexpected, and immediate in nature; and which is expected to preclude an employee from returning to work for an extended period of time, during which the employee will exhaust all of his/her accumulated leave balances.

Donated vacation time will be converted and credited to the recipient in equivalent hours of sick leave at the recipient's base hourly rate (e.g. employee A makes $20/hour and donates 1 hour of vacation time to employee B who earns $10/hour. Employee B's applicable leave bank is increased by 2 hours for each hour donated by A).

I. LEAVES OF ABSENCE
Medical Leave: Managers are eligible to request a medical or family leave of absence of up to one year under the City’s FMLA/CFRA Family Medical Leave Policy, the Leave without Pay (Medical Reasons) Policy, the Maternity Leave Policy, and/or the Parental Leave Policy.

The City Administrator may grant an extra leave of absence, in addition to that provided under the various sick leave policies to a manager who has been continuously employed by the City -15-
for five (5) years or more. When all sick leave has been exhausted, the manager can make a request, in writing, for extra leave and attach a report from his/her medical doctor stating the extent of the illness and the approximate time required for recovery. If approved the request shall be based on the following schedule:

Service in Years (active & continuous): Maximum # of Months of Extra Leave Allowable:
5- 10 3
10-15 6 (including the 3 above)
15-20 9 (including the 6 above)
20 + 12 (including the 9 above)
During such period of extra leave, the manager shall receive an amount equal to 50% of his/her regular salary (MC 3.08.210).

Non-Medical Leave: Managers may also request a personal leave of absence of up to one year for non-medical reasons under the City’s Leave of Absence without Pay (Non-medical reasons) Policy. A sabbatical may constitute a reason for a leave of absence. An approved leave of absence without pay will not constitute a break in continuous service.

21. RETIREMENT BENEFITS
A. RETIREMENT PLAN (PERS)
Each management employee will be enrolled in the Public Employee's Retirement System (PERS), in either the miscellaneous or safety category as determined by the individual's job classification.

New Members: Effective January 1, 2013, new members as defined by California Public Employees’ Pension Reform Act of 2013 (hereinafter “AB 340”) will be covered under the 2.7% at 57 Safety retirement formula or the 2% at 62 Miscellaneous retirement formula, with a final compensation measurement period of the average of the highest three (3) consecutive years, as well as all other statutory requirements of AB 340. Effective July 1, 2013, new employees and/or members as defined by AB 340 shall contribute half the normal cost for benefits, as defined by AB 340; the City will not pay any portion of these employees’ required contributions.

Classic Members: Employees who qualify as “Classic” PERS members by virtue of service with the City or another qualified employer prior to January 1, 2013 will be covered under the following plans:

1. Police and Fire Safety Managers: The City’s Fire and Police Managers are covered under the PERS 3% at age 50 benefit formula, with a final compensation measurement period of the single highest year.
a. Represented Police and Fire Safety Managers contribute toward retirement as -16-
outlined in the applicable labor agreement.
b. Unrepresented Police and Fire Safety managers contribute toward retirement as outlined in the as provided by Salary Plan(s) adopted by the City Council by ordinance.

2. Miscellaneous Managers: The City’s Miscellaneous Managers are covered under the PERS

2.7% at age 55 benefit formula, with a final compensation measurement period of the single highest year. The employee’s contribution toward the employee’s required member contribution, if any, is adjusted upward or downward from year to year depending on the City’s employer rate from PERS.

Managers also have the option, at their own expense, to receive PERS service credit for any military service time or other service time eligible for service credit purchase under the applicable PERS plan.

B. DEFERRED COMPENSATION
In addition to the City’s retirement plans, managers may elect to participate in the deferred compensation program to save for retirement. The deferred compensation program is a taxqualified Section 457 government defined contribution retirement program.

C. ANNUITY FOR SICK LEAVE UPON RETIREMENT
At the time of retirement, the City shall calculate the amount of an annuity for the retiring manager similar to the PERS amendment that provides service credit for sick leave. Note: This provision does not apply to Fire Safety Managers since credit for sick leave is included in their PERS contract, nor to Police Management Association (PMA) members, who are covered under the provisions of their labor agreement.
1) The following conditions apply to this benefit:
a. In order to qualify for payout of sick leave upon retirement, the retirement eligible manager must have at least five (5) years of service and at least 300 sick leave hours;
b. The conversion rate of 0.004 years of service credit for each day of sick leave is utilized;
2) Safety group members who obtain 90% of final compensation upon retirement are not eligible for this benefit. (All safety group PERS contract evaluations limit a safety member's maximum annual pension to no more than 90% of final compensation regardless of the length of service and this benefit carries the same restriction); and 3) If the City amends its PERS Miscellaneous or Police contract evaluation to include service credit for sick leave upon retirement, non-safety or Police members, respectively, will be included in that PERS contract amendment and the annuity program will be discontinued for that group.
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4) The retiring manager will be paid out in a lump sum amount based upon the value of the sick leave annuity.

This provision is not intended to provide a benefit when a similar benefit would not be available from PERS under the service credit for sick leave contract amendment.

D. RETIREE MEDICAL INSURANCE CONTRIBUTION

1. This provision is applicable to managers who retire from City service and a. Have 10 or more years of classified or unclassified service; or b. Retire from the City with an industrial disability retirement.

2. The City will contribute $12.00 per month, per year of service, toward the purchase of retiree medical insurance, up to a maximum of 35 years (i.e. $420.00 per month).

3. The retiree is not limited to the purchase of a City sponsored plan, provided however, that if the retiree purchases another insurance plan, the retiree must supply the City with adequate proof of insurance coverage prior to any contribution from the City. Proof of such coverage will be provided to the City on a periodic basis, as reasonably determined by the City.

4. The City will continue to make its contribution until the retiree reaches age 65 or dies, whichever occurs first, provided however, that if the retiree dies before reaching the age of 65 and there is a surviving spouse or registered domestic partner, the City's contribution will cease when the retiree would have reached 65. Thereafter, the spouse may remain on the insurance plan, at his/her cost, subject to the conditions set forth by the insurance company.

22. EDUCATION BENEFITS
A. LEAP TRAINING PROGRAM
The City is committed to providing quality in-house training to managers through the Learning for Excellence and Achievement Program (LEAP).

B. EDUCATIONAL REIMBURSEMENT PROGRAM
(Note: Due to financial conditions, this program was suspended effective July 1, 2009.

The program is scheduled to be reinstated in July 2014.) Managers are eligible for up to $1,000 per year in educational reimbursement through the Citywide Educational Reimbursement Policy.

C. MANAGEMENT MASTER’S DEGREE PROGRAM – See Appendix B
(Note: Due to financial conditions, this program was suspended effective July 1, 2009 and remains suspended)
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The City will pay the cost for a manager to obtain a master’s degree from an accredited institution, as detailed under the Management Master’s Degree Program.

23. HOUSING BENEFITS
A. COASTAL HOUSING PARTNERSHIP (CHP)
The City is a member employer of this organization which assists regular employees in becoming homeowners in the local community by providing financial assistance and educational services.

The package provides financial-assistance programs addressing common obstacles to purchasing a home, such as the down payment and closing costs. Refinancing for homeowners, and other housing programs are also available.

B. CALPERS MEMBER HOME LOAN PROGRAM
PERS offers its members a variety of options for purchasing or refinancing a home.

SPECIAL PROVISIONS

24. UNREPRESENTED POLICE SAFETY MANAGEMENT EMPLOYEES
Uniform Allowance
The Deputy Police Chief and Police Chief will receive a uniform allowance equal to the amount established for a Police Officer under the Police Unit M.O.U. in effect at the time.

P.O.S.T.

The Deputy Police Chief and Police Chief will receive advanced Police Officers Standards and Training (POST) pay equal to the amount established for a Police Sergeant.

25. UNREPRESENTED FIRE SAFETY MANAGEMENT EMPLOYEES
Uniform
The Fire Chief and the Fire Division Chief- Operations will receive an annual uniform allowance equal to the amount established for a Firefighter per the Fire Unit M.O.U. in effect at the time.

Emergency Overtime:
o Overtime will be accrued or paid to Fire Chief and the Fire Division Chief-Operations at straight time only when assigned to emergency suppression or prevention duties. o Overtime will not be accrued for performing administrative duties. o Overtime shall be accrued or paid out at the rate of time and one-half when providing mutual aid for which the City is reimbursed at the rate of time and one half. o Overtime may be accrued in a bank of hours not to exceed 48 hours. -19-

APPENDIX A

CATASTROPHIC LEAVE POLICY- MANAGEMENT
I. PURPOSE: To establish a program whereby City employees can donate vacation and/or compensatory time, if applicable, to:

A. The sick leave banks of permanent full-time and permanent part-time employees who are incapacitated due to a catastrophic illness or injury; or B. The vacation leave banks of permanent full-time and permanent part-time employees who are caring for a spouse or child who has a catastrophic illness or injury.

II. DEFINITION: A catastrophic illness or injury is a severe illness or injury which is unusual, unexpected, or immediate in nature; and which is expected to preclude an employee from returning to work for an extended period of time, during which the employee will exhaust all of his/her applicable accumulated leave balances.

III. POLICY: City employees may donate vacation and/or compensatory time, if applicable, to a permanent full-time or permanent part-time employee if:

A. An employee experiences a catastrophic illness or injury or must care for a spouse or child who has a catastrophic illness or injury which requires the employee to be absent from work for an extended period of time;
B. The employee has nearly exhausted all applicable leave balances (sick, vacation, personal leave, and compensatory time in the case of the employee’s off-duty catastrophic illness or injury; vacation, personal leave and compensatory time due to caring for a spouse or child who has experienced a catastrophic illness or injury); and
C. The employee or if incapacitated, the legally recognized representative, has agreed to accept the donation if approved by the department head and the City Administrator.

D. The department head will take action to help ensure that each employee's decision to donate or not donate to a Personal Catastrophic Leave Account is kept confidential and that the donor and recipient employees are not pressured to participate.

E. State and Federal income tax on the value of vacation and/or compensatory time, if applicable, donated will be deducted from the recipient employee's pay at the time the hours are used.
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IV. PROCEDURES:

A. A request is made by the recipient employee or if incapacitated, the legally recognized representative, to the department head for the establishment of a Personal Catastrophic Leave Account. This request may be made prior to the employee exhausting all of his/her applicable paid leave balances so that time donated may be utilized immediately upon exhaustion of the employee's leave balances, but not before.

B. Upon approval of the department head and the City Administrator, and upon agreement of the recipient employee, a Personal Catastrophic Leave Account will be established. The employee or if incapacitated, the legally recognized representative, will sign the "Request to Receive Donation(s)" form allowing publication and distribution of information regarding his/her situation.

C. The employee or if incapacitated, the legally recognized representative, will be required to provide verification of the catastrophic illness or injury from an attending physician before and while using time donated under this program. All information provided by the attending physician will remain confidential.

D. The request for donations will occur in three month intervals and may be extended up to a maximum of twelve (12) continuous months for any one catastrophic illness/injury, based upon approval of the department head and City Administrator.

E. Donated vacation and/or compensatory time will be converted and credited to the recipient’s applicable leave bank in equivalent hours based upon the recipient's base hourly rate. (e.g., employee A makes $20/hour and donates 1 hour of vacation time to employee B who earns $10/hour. B's applicable leave bank is increased by 2 hours for each hour donated by A.)
F. Employees will use the "Donation of Vacation and/or Compensatory Time" form to submit donations of vacation and/or compensatory time, if applicable, directly to Human Resources. All donations will be reviewed for compliance with this policy.

After review, the form will be forwarded to Payroll for action and adjustment to the donor's and recipient's paid leave balances.

G. All donations of vacation and/or compensatory time, if applicable, will be in increments of 4 hours or more (e.g. 4, 8, 12 hours) and will be made in three month increments. An employee may not donate vacation or compensatory time, if applicable, which would reduce his or her total accrued combined balance of vacation, compensatory time, personal leave and sick leave to less than 120 hours after the donation.

H. The donation of vacation and/or compensatory time, if applicable, is irreversible.

Should the recipient employee not use all the donated time for the catastrophic illness or injury, any balance will revert to a City-wide "Catastrophic Leave Bank" for -21-
future use by employees with need for that donated time pursuant to the provisions of this Catastrophic Leave Policy.

I. A report on the usage of Personal Catastrophic Leave Accounts and status of the City-wide "Catastrophic Leave Bank" will be available to recognized labor organizations and others with a need to know. The report will include the identity of the recipient(s), hours donated, hours used and the remaining balance(s). -22-

APPENDIX A

CITY OF SANTA BARBARA

CATASTROPHIC LEAVE POLICY - MANAGEMENT
(Attachment A)

REQUEST TO RECEIVE DONATION(S)
This form is for those City employees who are incapacitated due to a catastrophic illness or injury and wish to benefit from a City-established employee-donated Catastrophic Leave Bank. To be eligible to participate in the program, it is foreseen that an employee will use all of his/her accumulated leave balances because of a catastrophic illness or injury; however, any hours donated may not be utilized until the employee's leave balances are actually exhausted.

The purpose of this form is not to be intrusive into the personal life of any employee. The goal is to obtain enough information so that the decision to establish a Catastrophic Leave Bank for any given employee will be based on appropriate considerations. The intent is to establish a Catastrophic Leave Bank for those employees truly in need.

Name: Date:

Job Title: Department:

Please describe why you are requesting use of the Catastrophic Leave Bank including specific information such as the nature of the catastrophe. (A doctor's Certificate of Disability and/or more pertinent information will be required by the City.)

How much donated time do you estimate you may need?
I agree to allow this information to be released to those employees wishing to donate their vacation time to me, as well as those people involved in the administration of the program.

Signed by the Requesting Employee or if incapacitated, the Legally Recognized Representative _________________________________________Date________________________

Signed by the Department Head _________________Date _____________________ Signed by the City Administrator __________________Date _____________________ -23-

APPENDIX A

CITY OF SANTA BARBARA

CATASTROPHIC LEAVE POLICY - MANAGEMENT
(Attachment B)

DONATION OF VACATION TIME

CONFIDENTIAL
TO: Human Resources
FROM:
(Employee Name and Department)
DATE:

I understand that this donation of my vacation time is irrevocable. Should the employee receiving the donation not use all of the donated time for the catastrophic illness or injury, the balance will remain with the Catastrophic Leave Bank for future use by other employees with need for the donated time.

I understand that I may only donate vacation time and that time may only be donated in increments of four hours or more.

I understand that I cannot donate vacation time which would reduce my total accumulated vacation, personal leave, and sick leave to less than 120 hours after my donation.

I have read and understand all of the above and I freely and without restraint elect to donate ____ vacation hours to a Catastrophic Leave Bank established for the benefit of ___________________________.
(employee's name)
NAME: ________________________________________________
(Please Print)
SIGNATURE: ___________________________________________
DATE: ________________________________________________
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APPENDIX B

CITY OF SANTA BARBARA
MANAGEMENT MASTER’S DEGREE REIMBURSEMENT PROGRAM

PROGRAM CURRENTLY SUSPENDED
7/1/05

1. Objective
The City of Santa Barbara believes that continuing formal education has a positive impact on a manager’s contribution to the City; therefore, the City supports self-development and educational efforts of its managers by providing reimbursements for many of the expenses associated with obtaining a Master’s Degree related to the employee’s current profession as approved by the City Administrator.

2. Determining Program Eligibility (Note: this program suspended effective July 1, 2009) Effective July 1, 2005 a regular management employee is eligible for this program after successfully completing one-year of employment.

A participating manager will complete and submit a Master’s Degree Reimbursement Application to their Department Head for approval prior to starting the program. The application will include the outline/schedule of the courses for the Master’s Degree.

Upon approval from the Department Head, the Application will be sent to the Human Resources Office for final approval. The Human Resources Manager or designee has sole approval of courses to reimburse.

Depending on the potential impact of a manager’s absence on department operations and workload, the manager’s Department Head may allow the manager to rearrange work schedules or use accrued vacation, personal leave, or holiday (Police only) time to help accommodate coursework during off-duty hours.

Managers enrolled in the Master’s Degree Reimbursement Program are also eligible to receive the annual $1,000 from the Education Reimbursement Program for books related to their Master’s Degree and for non-Master’s degree related courses that qualify under the Education Reimbursement Program.

3. Eligible Expenses
The Program will reimburse the expenses of tuition, required textbooks, registration, program and lab fees and other fees directly related to the Master’s Degree. All other expenses such as parking, hotel accommodations, and travel expenses are not eligible for reimbursement. -25-

4. Program Budget
Funding for the program is limited to the total amount designated by the City Administrator.

Course approval is contingent on the availability of funds in the Master’s Degree Reimbursement Program fund administered by Human Resources.

5. Reimbursement Amount
The City will reimburse up to a maximum of $9,000 for a Master’s Degree in Public or Business Administration. This amount is based on the cost of a Master’s Degree in Public Administration at Cal-State Northridge (non-cohort model). This amount will be contingent on the total funding available for reimbursements. These funds will be increased in the future as necessary as the non-cohort tuition at Cal-State Northridge increases.

City reimbursement will be reduced by any other financial aid that does not have to be repaid (such as the GI Bill, scholarships and grants).

6. Course Approval Reimbursement Process
A participating employee will complete and submit a Master’s Degree Reimbursement Application to their Department Head for approval. Before the course starts and after the Department Head has approved the Application, the Application will be sent to the Human Resources Office for final approval and confirmation that funds are available. The Human Resources Manager or designee has sole approval of courses to reimburse.

Note: Effective July 1, 2005: with the implementation of this new Master’s Degree Reimbursement Program, managers who have received prior approval, through the Educational Reimbursement Program, for a current in-session Master’s Degree-related course in Public or Business Administration will be switched to and covered by this new program. These managers will need to complete the Application related to approval of the degree program.

7. Reimbursement Following Completion of a Course
To be eligible for Reimbursement, the manager must complete approved courses in a satisfactory manner. Proof of course completion is required and a grade of “C” or better or a “pass,” if the course is held in a pass/fail format, is required for reimbursement.

Following the completion of the course, the manager will submit receipts and proof of a completed course with a satisfactory grade to his or her Department Head within 90 days of the approved course completion date. Valid receipts are original receipts from a school or organization approved by the department. The Department Head will send the appropriate form, claim and receipts to the Finance Department.

The manager will be required to re-pay the Master’s Degree reimbursement if they do not complete the following work commitment:
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o If the manager leaves City employment within 12 months or less of completion of the degree they will be required to pay back 100% of the costs;
o If a manager leaves between 13 months to 24 months of completion of the degree they will be required to pay back 75% of the costs; and
o If they leave between 25 and 36 months of completion of the degree they will be required to pay back 25% of the cost.

To be reimbursed for the Master’s Degree, the manager must be a current employee of the City.

6. Taxation
Reimbursements provided by this program may be subject to state and federal income taxes.

More information regarding taxation of these reimbursements should be obtained from a licensed tax professional.
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APPENDIX B

CITY OF SANTA BARBARA
MANAGEMENT MASTER’S DEGREE PROGRAM
(Attachment A)

PROMISSORY NOTE
(UNSECURED)
$ XX,XXX Santa Barbara, California
_______________, 200_
FOR VALUE RECEIVED, and in connection with a City of Santa Barbara Master’s Degree Reimbursement Agreement dated _____________, the undersigned, (Employee Name), [hereinafter the “Maker”] promises to pay to the City of Santa Barbara, [“City”] as Holder, [or its order] at City Hall, [De La Guerra Plaza] 735 Anacapa Street, Santa Barbara, California 93101 [or at such other place as the holder may from time to time designate by written notice to Makers], the principal sum of ____________________ Dollars [$XX,XXX,] without interest from this date, as established in more detail specifically in the Master’s Degree Reimbursement Agreement dated ___________ (“The Agreement”).

Unless due earlier by reason of the exercise by the Holder of any remedies on default as set forth below, the principal sum set forth above shall be due and payable in the manner and at the times set forth in the Agreement dated, _____________________between the Maker and the Holder.

Maker agree to pay the following costs, expenses, and attorneys’ fees paid or incurred by the City or a subsequent holder of this note, or as may be adjudged by a Court: 1.) reasonable costs of loan collection, costs, expenses, and attorneys’ fees paid or incurred in connection with the collection or enforcement of this note, whether nor not suit is filed; and 2.) costs of suit and such sum as the Court may adjudge as attorneys’ fees in an action to enforce payment of this note or any part of it.

This Promissory Note is unsecured and Maker is personally liable for any deficiency on this Note.

City may pursue any remedies legally available to it to enforce the provisions of this Note and Agreement to which this Note relates.

The Maker, for him/herself and his/her successors and assigns, waives demand, presentment for payment, notice of dishonor, protest, notice of protest and diligence in collection and all notices or demands whatsoever with respect to this Note and the indebtedness evidenced hereby may be extended from time to time by the Holder and assents to any substitution, exchange or release of collateral permitted by the Holder, all without in any way modifying, altering, releasing, affecting or limiting the liability of the Maker under this Note. No failure of acceptance of a past due payment, or indulgences granted from time to time shall be construed (1) as a notation of this Note, (2) as a reinstatement of the indebtedness evidenced by this Note, (3) as a waiver of such right of acceleration or of the right of the Holder to insist upon strict compliance with the terms of this Note, -28-
or (4) to prevent the exercise of such right of acceleration or any other right granted under this Note or by any applicable law. No extension of time for the payment of this Note, made by agreement with any person now or hereafter liable for the payment of this Note, shall operate to release, discharge, modify, change or affect the original liability of the Maker under this Note, either in whole or in part, unless the Holder agrees otherwise in writing.

This Note is the Note referred to in and is entitled to the benefits of the Agreement. All the duties, responsibilities and obligations of the Maker and the rights of the Payee under the City of Santa Barbara Master’s Degree Reimbursement Agreement shall continue until the principal amount and any other sums due hereunder have been paid in full or as set forth in the Agreement. All rights, benefits and the terms of the City of Santa Barbara Master’s Degree Reimbursement Agreement shall inure to the benefit of any Holder. Any default under the City of Santa Barbara Master’s Degree Reimbursement Agreement shall be an event of default hereunder.

The Maker hereby waives and renounces for him/herself and his/her successors and assignees, all rights to the benefits of any moratorium, reinstatement, marshalling, forbearance, valuation, stay, extension, redemption, appraisement, exemption and homestead now provided, or which may hereafter be provided by the Constitution and laws of the United States of America or of any state thereof, both as to herself and to all of her property, real and personal, against the enforcement and collection of the obligations evidenced by this Note.

Time is of the essence hereunder. The failure or forbearance of the Holder to execute any rights under this Note or under any documents executed in connection with this Note shall not affect or release the liability of any obligor, including guarantors or sureties, or against property securing this Note without enforcing any other rights or remedies against any other obligor, including guarantors or sureties or against property securing this Note. The Maker agrees to pay all costs of collection, including reasonable attorneys' fees.

This Note may not be changed orally, but only in writing, signed by the party against whom enforcement of any waiver, change modification or discharge is sought.

Any notice required or permitted under this Note shall be given to the Maker or the Holder at the address set forth above (or at such other address as such party shall designated to the other party or parties in writing).

If any of the provisions of this Note shall contravene or be invalid or unenforceable under the laws of any jurisdiction where it is in effect, such contravention, invalidity or unenforceability shall not invalidate this entire Note, and this Note shall be construed as if it did not contain the particular provision or provisions held to be illegal, invalid or unenforceable, and all the rights of the Holder and obligations of the Maker shall be construed and enforced accordingly; always provided, however, that such invalid provision or provisions do not go to the essence of this Note so that is or their invalidity relieves the Maker from the obligation of rendering substantial performance under this Note.

This Note shall be construed and enforced in accordance with the laws of the State of California, without regard to the conflict of laws provisions of such State. -29-
As used in this Note, the terms "Maker" and "Holder" shall be deemed to include her respective heirs, successors, legal representatives and assigns, whether by voluntary action of the parties or by operation of law.

IN WITNESS WHEREOF, the Maker has executed this Note as of the ___________________________.
[Name of Maker]
____________________________
Signature of Maker
Sworn to and subscribed before me this _____day of_________, 20__.

NOTARY PUBLIC
My Commission Expires:
-30-

APPENDIX C

ICMA CODE OF ETHICS
The mission of ICMA is to create excellence in local governance by developing and fostering professional local government management worldwide. To further this mission, certain principles, as enforced by the Rules of Procedure, shall govern the conduct of every member of ICMA, who shall:

1. We believe professional management is essential to efficient and democratic local government by elected officials.

2. Affirm the dignity and worth of local government services and maintain a deep sense of social responsibility as a trusted public servant.

3. Demonstrate by word and action the highest standards of ethical conduct and integrity in all public, professional, and personal relationships in order that the member may merit the trust and respect of the elected and appointed officials, employees, and the public.

4. Serve the best interests of the people.

5. Submit policy proposals to elected officials; provide them with facts, and technical and professional advice about policy options; and collaborate with them in setting goals for the community and organization.

6. Recognize that elected representatives are accountable to their community for the decisions they make; members are responsible for implementing those decisions.

7. Refrain from all political activities which undermine public confidence in professional administrators.

Refrain from participation in the election of the members of the employing legislative body.

8. Make it a duty continually to improve the member’s professional ability and to develop the competence of associates in the use of management techniques.

9. Keep the community informed on local government affairs; encourage communication between the citizens and all local government officers; emphasize friendly and courteous service to the public; and seek to improve the quality and image of public service.

10. Resist any encroachment on professional responsibilities, believing the member should be free to carry out official policies without interference, and handle each problem without discrimination on the basis of principle and justice.

11. Handle all matters of personnel on the basis of merit so that fairness and impartiality govern a member’s decisions pertaining to appointments, pay adjustments, promotions, and discipline.

12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit.

Adopted by the ICMA Executive Board in 1924, and most recently revised by the membership in June 2020.

ORDINANCE NO. _______

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA
BARBARA ADOPTING THE 2022-2024 SALARY PLAN

APPLICABLE TO UNREPRESENTED MANAGERS AND
PROFESSIONAL ATTORNEYS AND THE 2022-2024 SALARY

PLAN APPLICABLE TO CERTAIN UNREPRESENTED SAFETY

MANAGERS

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

SECTION 1. The 2022-2024 Management Salary Plan applicable to unrepresented managers and professional attorneys and the 2022-2024 Management Salary Plan applicable to certain unrepresented safety managers, effective as of July 1, 2022, and attached hereto, and incorporated herein by reference as Exhibit “A” and Exhibit “B” (hereinafter the “2022-2024 Management Salary Plan”) is hereby approved.

Section 2. During the term of the Salary Plan, the City Administrator is hereby authorized to implement the terms of the 2022-2024 Management Salary Plan without further action by the City Council, unless such further Council action is required by state or federal law. This authorization shall include, but not be limited to, the authority to implement employee salary increases and changes to the salary schedule(s) that were adopted with the annual budget.
2022-2024 Management Salary Plan
Applicable to Unrepresented Managers and Professional Attorneys

1. This Management Salary Plan sets forth a plan for salary and benefit adjustments for certain unrepresented management employees for the period of July 1, 2022 through June 30, 2024.

2. This Salary Plan will apply to all management employees and professional attorneys not represented by a recognized employee organization, except the City Administrator and the City Attorney.

3. Salary Increases:

A. The following across-the-board base salary increases will be implemented for all employees except the City Administrator and City Attorney:

Effective September 24, 2022: 3.5%
Effective July 1, 2023: 3.0%

4. Vacation Cash-Out:

In order to qualify, an employee must take a minimum of forty (40) hours of accrued leave time (personal leave, management leave, vacation leave, or any combination of time during a fiscal year to be eligible to receive cash out of up to hundred (100) hours of vacation time for the same fiscal year. Vacation can only be "cashed out" in 10 hour increments (i.e. 10, 20, 30), and the amount to be cashed out will not exceed the employee's vacation balance at the end of the vacation year. Employees eligible for vacation cash out shall follow the procedures established by the City.

5. Vacation Accrual Max:

Effective October 22, 2022, the maximum vacation accrual will be 500 hours. Any employees who have a vacation balance above 500 hours will be cashed-out.

6. Salary Compaction:

The City will maintain Manager Classifications fifteen (15) percent above the highest paid subordinate classification salary. For purposes of this Section, “salary” shall only include base pay at the maximum of the range for the classifications. The City shall review Manager Classifications in May of each fiscal year, and provide the Unit with a summary report of this review. If, during the fiscal year, a compaction situation is identified, the Unit shall inform the City, and Human Resources shall review the classification in question. It is the responsibility of the association to maintain and update accurate Manager-to-subordinate reporting relationship information in the City payroll system. The City shall provide a determination within 30 calendar days of

EXHIBIT A
notification from the Unit. Implementation of the salary adjustments will be effective the first pay period following Council approval of the mid-year or new fiscal year budget.

7. The Management Performance and Compensation Plan and the Professional Attorneys Compensation Plan, will be amended, as necessary, to include these changes and any other language or de minimus changes to compensation and benefits.

EXHIBIT B
2022-2024 Management Salary Plan
Applicable to Certain Unrepresented Safety Managers
(“Management Salary Plan 2”)

1. This Management Salary Plan sets forth a plan for salary and benefit adjustments for unrepresented management employees for the period of July 1, 2022 through June 30, 2024.

2. This salary plan will apply only to the following unrepresented safety management employees: Fire Division Chief-Operations, the Fire Chief, and the Police Chief. This salary plan shall not apply to police management employees represented by the Police Management Association, nor to the Fire Division Chief-Prevention or the Fire Battalion Chiefs.

3. Salary Increases:

A. The following across-the-board base salary increases will be implemented for all employees except the City Administrator and City Attorney:

Effective September 24, 2022: 3.5%
Effective July 1, 2023: 3.0%

4. Vacation Cash-Out:

5. Vacation Accrual Max:

Effective October 22, 2022, the maximum vacation accrual will be 500 hours. Any employees who have a vacation balance above 500 hours will be cashed-out.

6. Salary Compaction:

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Mayor and Councilmembers
FROM: Business Services Division, Waterfront Department SUBJECT: Waterfront Department Lease Agreement with the Regents of the University of California for Dock Space in the Harbor [Ordinance Introduction; Agreement]
RECOMMENDATION:

That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Authorizing the Waterfront Director to Execute a Five Year Lease Agreement with One Five-Year Option with the Regents of the University of California, for 5,563 Square Feet of Water Area Located at 139 Cabrillo Boulevard, Commencing Upon the Effective Date of the Enabling Ordinance.

DISCUSSION:

The Regents of the University of California have leased dock space from the City since 1970. The site is to be used for education, research, and recreational sailing activities operated through University of California Santa Barbara’s (UCSB) Department of Recreation. Participation in recreational sailing and boating activities is limited by enrollment through the UCSB Department of Recreation. Students enrolled in Westmont College, City College, and other local schools and educational institutions may, by consent of the UCSB Department of Recreation, participate in sailing and boating programs conducted on the Site. Only vessels officially owned and registered to the University may be docked or moored at its facility.

The basic terms of the proposed lease are as follows:
 Term: Five years with one five-year option to extend
 Rent: $2,700.00 per month
 Annual Rent Adjustment: Cost of Living increases based on the Consumer Price Index (CPI)
Agenda Item No. 4
File Code No. 330.04
Council Agenda Report
Waterfront Department Lease Agreement with the Regents of the University of California for Dock Space in the Harbor [Ordinance Introduction; Agreement] September 13, 2022

Page 2 ends

UCSB is considered by the Department to be a tenant in good standing as they are prompt with rental payments and have no lease compliance problems on file.

Compliance with Coastal Land Use Plan
UCSB’s Sailing Center is considered an ocean-dependent use per the Waterfront Department’s Five-Year Review of Uses in the Harbor Commercial Zone. The Waterfront Department’s leasing priorities are as follows:
 First Priority: ocean-dependent business;
 Second Priority: ocean-related business; and
 Third Priority: visitor-serving business.

Ocean-dependent uses include those uses that assure the Harbor will remain a working harbor. The Harbor currently includes 20 ocean-dependent uses occupying 15,840 square feet of industrial space and 176,012 square feet of exterior space. Oceandependent uses range from boat mooring and marine-oriented government facilities (e.g.

Channel Islands National Marine Sanctuary offices) to a boatyard/repair facility and a marine fuel dock. The proposed uses by UCSB meet the Waterfront’s leasing priorities and conform to the City’s Coastal Land Use Plan.

BUDGET/FINANCIAL INFORMATION:

The lease revenues are assumed in the Waterfront Department’s Fiscal Year 2023 operating budget, and will be included in future budgets as well.

The Harbor Commission recommended approval of the proposed lease assignment at their June 16, 2022, meeting. A copy of the lease assignment is available for public review from the Waterfront Department; please email [email protected] to request a copy.

ATTACHMENT: Site Plan
PREPARED BY: Cesar Barrios, Acting Waterfront Busienss Manager SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: City Administrator's Office

ATTACHMENT
COUNCIL INTRODUCTION DRAFT 09/13/22
1 ORDINANCE NO.____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA AUTHORIZING THE WATERFRONT DIRECTOR TO

EXECUTE A FIVE YEAR LEASE AGREEMENT WITH ONE, FIVE

YEAR OPTION WITH THE REGENTS OF THE UNIVERSITY OF
CALIFORNIA, FOR 5,563 SQUARE FEET OF WATER AREA
LOCATED AT 139 CABRILLO BOULEVARD, COMMENCING

UPON THE EFFECTIVE DATE OF THE ENABLING ORDINANCE

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

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, the Agreement for a five year lease with one, five year option with the Regents of The University of California, for 5,563 square feet of water area located at 139 Cabrillo Boulevard, commencing upon the effective date of the enabling ordinance, a copy of which is on file with the City Clerk, is hereby approved.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: July 2022 Investment Report
RECOMMENDATION:

That Council accept the July 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 July 31, 2022.

ATTACHMENT: July 2022 Investment Report
PREPARED BY: Salvatore Parrilla, Finance Analyst
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 5
File Code No. 260.02

INVESTMENT ACTIVITY INVESTMENT INCOME

PURCHASES OR DEPOSITS POOLED INVESTMENTS
Interest Earned on Investments 287,960 $ Amortization 15,045 Total - $ Total 303,005 $

SALES, MATURITIES, CALLS OR WITHDRAWALS
7/18 LAIF (20,000,000) $
Total (20,000,000) $
ACTIVITY TOTAL (20,000,000) $ INCOME TOTAL 303,005 $

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

ATTACHMENT
1 ENDING BALANCE AS OF June 30, 2022
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account 41,827,911 $ 0.500% 12.66% 1 (1) State of California LAIF 75,000,000 0.861% 22.70% 1 (2)Treasury Securities 55,645,123 1.144% 16.84% 917Federal Agency Issues - Coupon 127,978,991 1.339% 38.74% 1,079Corporate/Medium Term Notes 16,977,433 2.185% 5.14% 607Supranationals Obligations 12,963,083 0.701% 3.92% 902

1.110% 100.00% 639 330,392,541
Totals and Averages $ 1.110% 100.00% 639 330,392,541
Total Cash and Investments 330,392,541 $
NET CASH AND INVESTMENT ACTIVITY FOR July 2022 (27,667,337) $ ENDING BALANCE AS OF July 31, 2022 Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account 34,145,529 $ 0.580% 11.28% 1 (1) State of California LAIF 55,000,000 1.090% 18.17% 1 (2)Treasury Securities 55,654,842 1.144% 18.38% 886Federal Agency Issues - Coupon 127,979,859 1.339% 42.28% 1,048Corporate/Medium Term Notes 16,979,321 2.185% 5.61% 576Supranationals Obligations 12,965,653 0.701% 4.28% 871

1.192% 100.00% 676 302,725,204
Totals and Averages $ 1.192% 100.00% 676 302,725,204
Total Cash and Investments 302,725,204 $
Note: (1) Earnings Credit Rate (ECR) is provided at the rate of 0.580% by MUFG Union Bank, N.A. to help offset banking fees. (2) The average life of the LAIF portfolio as of July 31, 2022 is 308 days.

CITY OF SANTA BARBARA
Summary of Cash and Investments
July 31, 2022
2 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS LOCAL AGENCY INVESTMENT FUNDSLOCAL AGENCY INVESTMENT FUND - - - - 1.090 1.090 55,000,000.00 55,000,000.00 55,000,000.00 0.00 Subtotal, LAIF 55,000,000.00 55,000,000.00 55,000,000.00 0.00TREASURY SECURITIES - COUPONU S TREASURY NOTE 05/03/19 04/30/24 Aaa AA+ 2.250 2.342 2,000,000.00 1,996,983.83 1,976,720.00 (20,263.83)U S TREASURY NOTE 06/27/19 08/31/22 Aaa AA+ 1.875 1.743 2,000,000.00 2,000,209.95 1,999,380.00 (829.95)U S TREASURY NOTE 01/22/20 02/28/23 Aaa AA+ 1.500 1.527 2,000,000.00 1,999,694.47 1,983,680.00 (16,014.47)U S TREASURY NOTE 01/22/20 06/30/23 Aaa AA+ 1.375 1.534 2,000,000.00 1,997,180.78 1,971,020.00 (26,160.78)U S TREASURY NOTE 01/12/21 09/15/23 Aaa AA+ 0.125 0.185 3,000,000.00 2,997,981.64 2,906,490.00 (91,491.64)U S TREASURY NOTE 01/21/21 10/31/22 Aaa AA+ 0.125 0.118 3,000,000.00 3,000,049.37 2,983,350.00 (16,699.37)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,988,427.56 2,777,940.00 (210,487.56)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,983,055.70 1,859,380.00 (123,675.70)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,978,194.17 1,842,740.00 (135,454.17)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,981,302.83 1,856,020.00 (125,282.83)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,984,375.83 1,869,620.00 (114,755.83)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,990,412.55 1,853,040.00 (137,372.55)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,978,524.81 1,839,220.00 (139,304.81)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,979,804.16 1,846,320.00 (133,484.16)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,988,627.01 1,853,440.00 (135,187.01)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,966,455.33 2,872,020.00 (94,435.33)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,923,981.84 2,784,600.00 (139,381.84)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.210 3,000,000.00 2,993,861.08 2,876,730.00 (117,131.08)U S TREASURY NOTE 01/31/22 01/31/24 Aaa AA+ 0.875 1.145 3,000,000.00 2,988,011.10 2,908,140.00 (79,871.10)U S TREASURY NOTE 02/28/22 02/29/24 Aaa AA+ 1.500 1.548 2,000,000.00 1,998,520.01 1,955,240.00 (43,280.01)U S TREASURY NOTE 02/28/22 11/30/26 Aaa AA+ 1.625 1.863 2,000,000.00 1,980,350.30 1,909,620.00 (70,730.30)U S TREASURY NOTE 03/15/22 03/15/25 Aaa AA+ 1.750 1.827 3,000,000.00 2,994,137.74 2,916,450.00 (77,687.74)U S TREASURY NOTE 03/17/22 05/31/24 Aaa AA+ 2.000 2.006 2,000,000.00 1,999,765.93 1,967,500.00 (32,265.93)U S TREASURY NOTE 03/17/22 12/31/26 Aaa AA+ 1.750 2.170 2,000,000.00 1,964,934.30 1,919,840.00 (45,094.30) Subtotal, Treasury Securities 56,000,000.00 55,654,842.29 53,528,500.00 (2,126,342.29)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 05/09/19 04/03/23 - - 2.360 2.371 2,000,000.00 1,999,862.11 1,992,340.00 (7,522.11)FED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,997,329.18 1,955,120.00 (42,209.18)FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.480 3,000,000.00 3,000,000.00 2,782,260.00 (217,740.00) Callable 09/22/23, Q FED AGRICULTURAL MTG CORP 06/09/22 08/20/24 - - 2.910 2.911 3,000,000.00 3,000,000.00 2,977,650.00 (22,350.00) Callable 06/09/23, QFEDERAL FARM CREDIT BANK 01/31/19 10/23/23 Aaa AA+ 2.650 2.670 2,000,000.00 1,999,553.33 1,993,360.00 (6,193.33) FEDERAL FARM CREDIT BANK 06/27/19 12/12/22 Aaa AA+ 1.875 1.830 2,000,000.00 2,000,313.56 1,994,600.00 (5,713.56)FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,863,300.00 (136,700.00) Callable, 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 1,885,580.00 (114,420.00) Callable, PFEDERAL FARM CREDIT BANK 09/08/21 09/08/26 Aaa AA+ 0.870 0.870 2,000,000.00 2,000,000.00 1,830,220.00 (169,780.00) Callable 09/08/22, PFEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,982,800.44 2,861,310.00 (121,490.44) 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 2,839,980.00 (160,020.00) Callable, PFEDERAL FARM CREDIT BANK 12/22/21 06/22/26 Aaa AA+ 1.390 1.390 3,000,000.00 3,000,000.00 2,859,060.00 (140,940.00) Callable, PFEDERAL FARM CREDIT BANK 01/27/22 01/26/27 Aaa AA+ 1.780 1.780 3,000,000.00 3,000,000.00 2,823,870.00 (176,130.00) 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 2,893,980.00 (106,020.00) 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 2,791,200.00 (208,800.00) Callable 10/28/22, QFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,787,780.00 (212,220.00) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,792,730.00 (207,270.00)FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,776,740.00 (223,260.00) Callable 02/25/23, A

QUALITY RATING

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

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
July 31, 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 1,856,800.00 (143,200.00) S/U 0.50-1.00%, Callable 09/16/22 - 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 1,877,720.00 (122,280.00) Callable 08/20/22, QFEDERAL HOME LOAN BANK 05/26/21 12/26/25 Aaa AA+ 0.900 0.900 3,000,000.00 3,000,000.00 2,813,190.00 (186,810.00) Callable 08/26/22, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,884,120.00 (115,880.00) Callable 08/26/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,878,060.00 (121,940.00) Callable 09/10/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,876,060.00 (123,940.00) Callable 09/10/22, QFEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,871,400.00 (128,600.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,896,460.00 (103,540.00) 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 1,871,400.00 (128,600.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 09/28/21 09/28/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,860,260.00 (139,740.00) 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 1,896,300.00 (103,700.00) 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 2,888,760.00 (111,240.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 12/28/21 02/28/25 Aaa AA+ 1.125 1.125 3,000,000.00 3,000,000.00 2,849,940.00 (150,060.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 12/29/21 12/29/23 Aaa AA+ 0.700 0.700 3,000,000.00 3,000,000.00 2,909,070.00 (90,930.00) Callable, PFEDERAL HOME LOAN BANK 12/30/21 12/30/24 Aaa AA+ 1.000 1.000 3,000,000.00 3,000,000.00 2,850,420.00 (149,580.00) Callable, PFEDERAL HOME LOAN BANK 01/26/22 01/26/27 Aaa AA+ 1.125 1.788 3,000,000.00 3,000,000.00 2,851,080.00 (148,920.00) 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 2,927,040.00 (72,960.00) 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 2,917,500.00 (82,500.00) Callable 03/29/23, QFEDERAL HOME LOAN BANK 04/21/22 04/21/26 Aaa AAA 3.000 3.000 2,000,000.00 2,000,000.00 1,969,240.00 (30,760.00) 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 1,986,520.00 (13,480.00) Callable 04/25/23, 1xFEDERAL FARM CREDIT BANK 05/26/22 05/26/26 Aaa AA+ 3.375 3.375 3,000,000.00 3,000,000.00 2,982,690.00 (17,310.00) Callable 05/26/23, PFEDERAL HOME LOAN MTG CORP 11/25/20 11/25/25 Aaa AA+ 0.625 0.625 3,000,000.00 3,000,000.00 2,776,290.00 (223,710.00) Callable on 11/25/22, AFEDERAL HOME LOAN MTG CORP 11/24/20 11/24/23 Aaa AA+ 0.320 0.320 3,000,000.00 3,000,000.00 2,897,670.00 (102,330.00) Callable 08/24/22, 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 2,835,780.00 (164,220.00) Callable 09/09/22, QFEDERAL HOME LOAN MTG CORP 06/22/22 03/22/24 Aaa AA+ 2.750 2.751 4,000,000.00 4,000,000.00 3,977,000.00 (23,000.00) Callable 06/22/23, 1xFEDERAL HOME LOAN MTG CORP 06/23/22 06/23/27 Aaa AA+ 3.500 3.500 3,000,000.00 3,000,000.00 2,987,880.00 (12,120.00) Callable 12/23/22, QFEDERAL HOME LOAN MTG CORP 06/28/22 06/28/24 Aaa AA+ 3.050 3.050 4,000,000.00 4,000,000.00 3,983,200.00 (16,800.00) Callable 09/28/22, QFEDERAL NATL MORTGAGE ASSN 08/17/20 08/17/23 Aaa AA+ 0.310 0.310 3,000,000.00 3,000,000.00 2,911,380.00 (88,620.00) Callable 08/17/2022, QFEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,735,520.00 (264,480.00) 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 2,867,280.00 (132,720.00) Callable on 11/17/2022, Q Subtotal, Federal Agencies 128,000,000.00 127,979,858.62 122,387,110.00 (5,592,748.62) 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 2,772,750.00 (227,250.00)INTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,700.07 2,822,130.00 (177,570.07)INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,996,064.00 1,861,620.00 (134,444.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,985,637.22 1,858,040.00 (127,597.22)INTERNATIONAL FINANCE CORP 03/14/22 03/20/23 Aaa AAA 0.500 1.334 3,000,000.00 2,984,251.56 2,952,120.00 (32,131.56) Subtotal, Supranationals 13,000,000.00 12,965,652.85 12,266,660.00 (698,992.85)CORPORATE/MEDIUM TERM NOTESAPPLE INC 04/23/19 05/03/23 Aaa AA+ 2.400 2.718 2,000,000.00 1,995,475.42 1,991,200.00 (4,275.42)APPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,995,870.67 1,957,180.00 (38,690.67)APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,469.43 2,771,790.00 (227,679.43)BERKSHIRE HATHAWAY INC 04/05/18 03/15/23 Aa2 AA 2.750 3.016 2,000,000.00 1,996,944.54 1,996,200.00 (744.54)MICROSOFT CORP 05/23/19 08/08/23 Aaa AAA 2.000 2.535 2,000,000.00 1,989,704.62 1,983,440.00 (6,264.62)TOYOTA MOTOR CREDIT 07/27/18 07/20/23 A1 A 3.419 3.392 2,000,000.00 2,000,474.94 2,001,460.00 985.06TOYOTA MOTOR CREDIT 06/14/19 09/08/22 A1 A 2.150 2.182 2,000,000.00 1,999,936.43 1,999,420.00 (516.43)TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,001,445.16 1,925,180.00 (76,265.16) Subtotal, Corporate Securities 17,000,000.00 16,979,321.21 16,625,870.00 (353,451.21) 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
July 31, 2022
CHECKING ACCOUNTMUFG UNION BANK NA CHKNG ACCNT - - - - 0.580 0.580 34,145,528.87 34,145,528.87 34,145,528.87 0.00 Subtotal, Checking Account 34,145,528.87 34,145,528.87 34,145,528.87 0.00TOTALS 303,145,528.87 302,725,203.84 293,953,668.87 (8,771,534.97) Market values have been obtained from the City's safekeeping agent, MUFG Union Bank, N.A. - The Private Bank (UBTPB). 5 6

1.192

2.890

2.410

1.090
-

0.5 1.0 1.5 2.0 2.5 3.0 3.5
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)
May'22
$0.955
Jun'22
($1.429)
Jul'22
$1.042

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: September 13, 2022
TO: Mayor and Councilmembers
FROM: City Clerk’s Office
SUBJECT: Recruitment For City Advisory Groups
RECOMMENDATION: That Council:

A. Authorize and direct the City Clerk’s Office to accept applications through Monday, October 10, 2022, at 5:00 p.m. to fill scheduled vacancies on various City Advisory Groups and the unscheduled vacancies resulting from resignations received in the City Clerk’s Office through Wednesday, September 21, 2022; B. Direct scheduling of City Council interviews of applicants for vacancies on various City Advisory Groups on Tuesday, November 1, 2022, at 4:00 p.m. (Estimated Time), Tuesday, November 8, 2022, at 4:00 p.m. (Estimated Time), and Tuesday, November 15, 2022, at 6:00 p.m. (Estimated Time); and C. Direct scheduling of City Council appointments to fill the vacancies on various City Advisory Groups on Tuesday, December 6, 2022.

PREPARED BY: Niko Lopez, Deputy City Clerk
SUBMITTED BY: Rebecca Bjork, City Administrator
APPROVED BY: City Administrator's Office
Agenda Item No. 6
File Code No. 140.02

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Communications Office Outreach Update and Website Test Drive RECOMMENDATION:

That Council receive an annual update on implementation of the City’s communication efforts and website launch.

EXECUTIVE SUMMARY:

This report provides an update on the City's communication efforts and goals for increasing inclusivity and language access. The update highlights the strategies for outreach, achievements, actions in progress, and goals for the coming year. Additionally, the update provides a look at the City’s new website that launched in June of 2022.

DISCUSSION:

Situated within the City Administrator’s Office, the Public Information Officer (PIO)/Community Engagement Manager, coordinates the City’s overall outreach efforts and is responsible for developing citywide guidance for communications and outreach. A Communications Specialist and City TV staff also contribute to those efforts.

A major initiative of the City Administrator’s Office has been to improve outreach to extend to a greater portion of the community, and to increase transparency and invite public engagement.

Inclusivity
Staff has worked toward greater inclusivity in the City’s outreach efforts in the following ways:

Agenda Item No. 7
File Code No. 170.04
Council Agenda Report
Communications Office Outreach Update and Website Test Drive September 13, 2022

Page 2 ends

 Interpretation
 Language Access Discussion at the Start of Projects
 Online Accessibility and Translation
 Technology Assistance
Interpretation
In addition to City Council meetings, staff also contracts with an interpreter to assist at select public meetings.

Language Access Discussion at the Start of Projects
Staff is encouraged to think of inclusivity at the start of a project rather than addressing topics like content translation and accessibility once the project is underway. Addressing this at the start creates more efficient planning to address the need for Spanish translation and interpretation and online accessibility.

Online Accessibility and Translation
In addition to translating documents and online posts into Spanish, thought is given to fonts, colors, and text size so that information can be read better by users with visual impairments. Alternative text (Alt text) is used on graphics for web and social media posts.

Alt text allows screen readers to help a visually impaired user better understand an onpage image by reading the text description.

Technology Assistance
For City Council meetings, the City has incorporated the use of the Listen Everywhere application. This allows attendees at meetings to download the application, use their own earphones, and get hearing assistance in English or translation to Spanish. For those who opt to view the meetings from home, there are a variety of ways to view the meetings online in both English and Spanish. The use of closed captioning is also available on meeting videos.

Future Goals
Language Access Plan
The PIO continues to work with the City’s entire communications team to draft and approve a Spanish language access plan that will guide City efforts in presenting a unified approach to creating messaging that reaches Spanish-speaking audiences.

Council Agenda Report
Communications Office Outreach Update and Website Test Drive September 13, 2022

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Community State of the City
Planning will begin in just a few weeks for a community-oriented State of the City Address/Open House that will allow the community to engage with staff and public officials, hear about upcoming projects and accomplishments, and get questions answered.

Growth and Training for Spanish Cadre
In times of emergency, it is imperative that language is not a barrier to communicating essential information. The City has a Spanish Cadre in place that is activated in emergencies to provide that communication, but staff continues to work toward growing the number of employee participants and providing formal training.

Branding and Social Media Guidance
The Communications Staff continues to work toward developing a comprehensive and updated guide to brand identity and social media use to ensure communication consistency across Departments.

Spanish Translation
Work continues toward not only identifying and translating existing documents but increasing our capability of creating as much content as possible in Spanish.

Improvements in this area will take time and are ongoing.

In addition to these efforts, we have re-evaluated many of the ways we are currently delivering messaging and made some improvements.

These include:
 Redesigning the weekly newsletter;
 Relaunching the quarterly business newsletter; and
 Re-launching the quarterly 50-minute magazine show as a bi-weekly, 5- to 7- minute show that better suits today’s busy audiences.

Outreach and Messaging
Redesign of City News in Brief Weekly Newsletter
The City News in Brief weekly newsletter needed a refresh, aesthetically, but also to make it more mobile friendly and to eliminate many of the technical challenges that made putting the content into the design time-consuming. Staff worked to deliver a streamlined redesign of City News in Brief that considers accessibility and mobile design. The new look was welcomed and cut down production time by at least 1-2 hours per week.

Council Agenda Report
Communications Office Outreach Update and Website Test Drive September 13, 2022

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Business Newsletter and Branded e-Blast
Staff has worked with the Economic Development Manager and the City’s graphic designer to relaunch the quarterly business newsletter with new, intentional content and a fresh design. The effort is on track for a fall launch. We are currently working on the new template and deciding on regular content features that will add benefit to the business community. Along with the newsletter, there will be a newly designed and branded business e-blast to regularly address the business community with timely messaging.

This will be an important vehicle to proactively deliver business information, and along with the branding and consistency, provide a reliable go-to source of news that complements the new website.

City Connection News Programming
We have restructured the Inside Santa Barbara television show to be more social mediafriendly with shorter, shareable stories. The new show is called City Connection and will present a look at City news in a news-broadcast style with a host. The bi-weekly show will be 5-7 minutes, will take less production time than the previous show, provide more frequent programming, and will allow us to multipurpose the content into even smaller videos for use on social media.

In addition, staff is planning a Spanish-language version of City Connection, presented in Spanish—not dubbed or subtitled. This will be an effort that will take some extra bandwidth, so we are trying to get our initial programming off the ground and to identify efficiencies in other areas before we take this on.

Increased Engagement Through Social Media
Increasingly, people are turning to social media to find news and information. To better utilize this platform, staff has shifted its approach to posting so that the information is more relatable, approachable, and invites engagement. With these changes we have seen follower counts and engagement numbers increase, in most instances, by double digits.

Website Launch
The City’s website is one of our most robust outreach tools. The site launched in June and from the start of website planning, staff has made a solid and ongoing commitment toward inclusivity of all website visitors. The City's website was designed with Section 508 of the Rehabilitation Act and Web Content Accessibility Guidelines (WCAG 2.1) in mind for making web content accessible to people with disabilities (ADA compliance).

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This was accomplished in the following ways:
 Simple and consistent information architecture;
 Using “Skip to” navigation links that allow a visitor to easily jump to the main content area of a page;
 Main Site Navigation and Sub-Navigation uses lists that are easier for screen readers without unnecessary code;
 Images have Alt text;
 UserWay Website Accessibility Widget is installed on every page allowing improved compliance with the Web Content Accessibility Guidelines; and  Use of PDFs that integrate with Adobe tools to assist blind and visually impaired users.

Website Analytics
Since launch, a web analytics comparison of pre vs. post launch shows the following:
 People are more engaged with the website while spending less time on it. This demonstrates that they are getting what they need more often and finding it quicker than before.
 Traffic coming from social media is engaging much more with the website.  Traffic from mobile, search, and social channels has increased because we’ve optimized our content and design for search. Our website is scoring higher in algorithms like Google’s that take page quality into account.  Overall traffic has decreased, however, primarily thought to be due to a drop in direct link traffic and could be attributed to the migration of documents from the previous site.

Ongoing Commitment
The City has engaged in an annual contract with SiteImprove, a recognized leader in web accessibility testing, to regularly scan the City’s website to identify and remediate accessibility barriers on the site. SiteImprove’s web accessibility tools index the City website every five days, catalogs, and prioritizes accessibility, as well as functionality issues, such as broken links. A reporting system allows City staff to easily follow and adhere to international Web Content Accessibility Guidelines (WCAG).

OnBase is the City of Santa Barbara’s enterprise document archive system. OnBase allows for the search and retrieval of documents, with in some cases full-text search capability. As part of the integration into OnBase, all PDFs are processed for optical character recognition (OCR), which allows PDFs to be read by assistive reading software.

Council Agenda Report
Communications Office Outreach Update and Website Test Drive September 13, 2022

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BUDGET/FINANCIAL IMPACT:

The costs incurred for the comprehensive website update and contracts to support expanded accessibility and language translation were budgeted and approved by Council in previous fiscal years. For example, the Listen Everywhere application and hardware was part of an $86,000 audio equipment upgrade in Council Chambers and the David Gebhard Room in December 2021 and January 2022. The application servers were $5,000 total, funded by City TV PEG fees. Meeting interpretation services are sourced as needed at $125 per hour.

PREPARED BY: Shelly Cone, Public Information Officer/Community Engagement Manager
SUBMITTED BY: Rebecca Bjork, City Administrator
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 13, 2022
TO: Mayor and Councilmembers
FROM: City Attorney’s Office
SUBJECT: Conference With City Attorney – Existing Litigation – Gov. Code § 54956.9(d)(1)
RECOMMENDATION:

That Council hold a closed session to consider pending litigation pursuant to subsection (d)(1) of section 54956.9 of the Government Code and take appropriate action as needed.

The pending litigation is Kenneth Young v. City of Santa Barbara, et al. SBSC Case No. 21CV04618.

Scheduling: Duration 10 mins; anytime
Report: None anticipated
PREPARED BY: Sarah Knecht, Acting City Attorney
SUBMITTED BY: Sarah Knecht, Acting City Attorney
APPROVED BY: City Administrator's Office
Agenda Item No. 8
File Code No. 160.03

Santa Barbara City CouncilSeptember 13, 2022

Santa Barbara City Council
September 13, 2022