Agenda packet — Santa Barbara City Council, July 25, 2023

CITY OF SANTA BARBARA

CITY COUNCIL
Randy Rowse
Mayor
Rebecca Bjork
City Administrator
Alejandra Gutierrez
Mayor Pro Tempore
Oscar Gutierrez
Ordinance Committee Chair
Sarah J. Knecht
City Attorney
Eric Friedman
Finance Committee Chair
Meagan Harmon
Mike Jordan
Kristen W. Sneddon
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
JULY 25, 2023, 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 p.m. 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_6qBzhd1OQ_iNFgvfSw-R0Q (Participation via Zoom)
• Telephone: Dial 1-669-900-6833, Enter Webinar ID: 859 7587 0615 (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. (CONTINUED ON NEXT PAGE)
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 12:00 p.m. The regular City Council meeting begins at 2:00 p.m. in the Council Chambers at City Hall.

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. 07/25/2023 Santa Barbara City Council Final Agenda Page 1 JULY 25, 2023 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue (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 Turner Foundation in the Amount of $457,500 for Acquisition of the Real Property Located at 2011 Oak Avenue to Be Used for Low-Income Transitional Age Youth Housing, to Be Secured by a Deed of Trust and a Ninety-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements as Necessary;
B. Approve the subordination of the City’s Loan Agreement, Deed of Trust, and Affordability Covenant to both the California Department of Housing and Community Development (HCD) and County of Santa Barbara agreements, liens, and regulatory agreements; and
C. Authorize the Community Development Director to execute a formal reservation of funding letter to be submitted to State Housing and Community Development as part of the Homekey project application.

2. Subject: Reserve Policy Discussion and Direction (120.03) Recommendation: That Finance Committee:

A. Review and provide direction regarding staff recommended changes to Resolution No. 22-126 establishing policies for reserves for the City’s General Fund, Enterprise Funds, and Internal Service Funds; and B. Recommend that the City Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara amending the Santa Barbara Municipal Code by repealing Chapter 17.40 pertaining to the purpose, accumulation, and use of funds within the Harbor Preservation Fund.
07/25/2023 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: National Disability Independence Day - July 26, 2023 (120.04)

CHANGES TO THE AGENDA

CONSENT CALENDAR

2. Subject: Noise Ordinance Update [Ordinance Adoption] (630.09) Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Municipal Code by Amending Sections 9.16.030 and 9.16.080 Pertaining to Noise.

3. Subject: Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction, Agreement] (660.04)
Recommendation: That 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 Turner Foundation in the Amount of $457,500 for Acquisition of the Real Property Located at 2011 Oak Avenue to Be Used for Low-Income Transitional Youth Housing, to Be Secured by a Deed of Trust, and Approving a Ninety-Year Affordability Control Covenant Imposed on Real Property, and Authorizing the Community Development Director to Execute Such Agreements as Necessary;
B. Approve the Subordination of the City’s Loan Agreement, Deed of Trust, and Affordability Covenant to the California Department of Housing and Community Development (HCD) and County of Santa Barbara Agreements, Liens, and Regulatory Agreements; and
C. Authorize the Community Development Director to execute a formal reservation of funding letter to be submitted to State HCD as part of the Homekey project application.
07/25/2023 Santa Barbara City Council Final Agenda Page 3

4. Subject: Amendments to the Schedule of Penalties, Fees, and Service Charges Related to Downtown Parking, Water, and Wastewater [Resolution] (230.05)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing the City Clerk to Correct Clerical Errors by Inserting Replacement Pages into Resolution 23-078 Adopted on June 13, 2023, Which Became Effective on July 1, 2023, or as Provided Therein, and Amend the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges.

5. Subject: June 30, 2023, Investment Report and June 30, 2023, Fiscal Agent Report (260.02)
Recommendation: That Council:

A. Accept the June 30, 2023, Investment Report; and
B. Accept the June 30, 2023, Fiscal Agent Report.

6. Subject: Contract with Santa Barbara International Film Festival [Agreement] (170.01)
Recommendation: That Council authorize the City Administrator to execute an annual community promotion contract with Santa Barbara International Film Festival in the amount of $76,665 to support film festival programming and yearround administrative expenses.

7. Subject: Contract with Visit Santa Barbara for Tourism Marketing Services [Agreement] (170.01)
Recommendation: That Council authorize the City Administrator to execute an annual community promotion contract with Visit Santa Barbara to provide marketing services that promote Santa Barbara as a tourism destination, in an amount of $950,000.
07/25/2023 Santa Barbara City Council Final Agenda Page 4

8. Subject: Amendments to Professional Services Agreements for Permit, Plan Check, and Inspection Services [Agreement] (640.01)
Recommendation: That Council:

A. Authorize the Community Development Director to execute the fifth amendment to increase the amount of Santa Barbara City Agreement No. 26978 with Bureau Veritas North America, Inc., by $115,000, for a total contract amount of $1,060,000, to provide permit, plan check, and inspection services; and
B. Authorize the Community Development Director to execute the fifth amendment to increase the amount of Santa Barbara City Agreement No. 26979 with Interwest Consulting Group by $100,000, for a total contract amount of $585,000, to provide permit, plan check, and inspection services.

9. Subject: Lease with First Friends By the Sea for Childcare Center at 130 East Cota Street [Agreement] (570.05)
Recommendation: That Council authorize the Parks and Recreation Director to execute a lease agreement with First Friends By the Sea for temporary use of the Parks and Recreation facility at 130 East Cota Street within Plaza Vera Cruz Park.

This concludes the Consent Calendar.

REPORT FROM THE FINANCE COMMITTEE

PUBLIC COMMENT

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: July 25, 2023 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_K4doCT89RpuEzLSRz6iq1A Webinar ID: 842 4767 6238
Passcode: 061119
After registering, you will receive a confirmation email containing information about joining the webinar.
 Telephone: Dial 1-669-900-6833, Enter Webinar ID: 842 4767 6238 (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.

File Code No. 120.03
ITEM FOR CONSIDERATION:

1. Subject: Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
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 Turner Foundation in the Amount of $457,500 for Acquisition of the Real Property Located at 2011 Oak Avenue to Be Used for Low-Income Transitional Age Youth Housing, to Be Secured by a Deed of Trust and a Ninety-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements as Necessary; B. Approve the subordination of the City’s Loan Agreement, Deed of Trust, and Affordability Covenant to both the California Department of Housing and Community Development (HCD) and County of Santa Barbara agreements, liens, and regulatory agreements; and
C. Authorize the Community Development Director to execute a formal reservation of funding letter to be submitted to State Housing and Community Development as part of the Homekey project application.

2. Subject: Reserve Policy Discussion and Direction
Recommendation: That Finance Committee:

A. Review and provide direction regarding staff recommended changes to Resolution No. 22-126 establishing policies for reserves for the City’s General Fund, Enterprise Funds, and Internal Service Funds; and B. Recommend that the City Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Repealing Chapter 17.40 Pertaining to the Purpose, Accumulation, and Use of Funds within the Harbor Preservation Fund.

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Finance Committee
FROM: Housing and Human Services Division, Community
Development Department
SUBJECT: Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
RECOMMENDATION: That Finance Committee consider and recommend that City Council:

EXECUTIVE SUMMARY:

According to the 2023 County of Santa Barbara Point-in-Time Count performed on January 25, 2023, Transitional Age Youth (TAY) whose ages are between 18 and 24 years represents five percent of our community’s homeless population. State HCD has recently File Code No. 660.04
Finance Committee Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
July 25, 2023

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begun measuring progress toward ending youth homelessness and has set aside funding to help house our most vulnerable young adults.

In partnership with the Turner Foundation, State HCD, and the County of Santa Barbara, the City has an opportunity to help acquire property in the City of Santa Barbara to provide permanent housing and supportive services to address the needs of this growing at-risk population.

DISCUSSION:

Background
The Turner Foundation has a 65-year track record of providing low-income housing with supportive services to adult and family populations. In 2020, they launched The Foundation House, a program specifically designed to address the housing needs of transitional-age youth (ages 18–24) who have experienced unstable housing situations.

Through their partnership with My Home, a program of the Channel Islands YMCA Youth and Family Services, they have provided weekly case management meetings in which participants receive coaching on budgeting, job preparedness, and other essential life skills.

Historically, participants have experienced difficulty qualifying for permanent housing without adequate credit, rental history, or income, and have lacked supportive services as they transition to independent living. The Turner Foundation believes that acquiring the property will greatly enhance their ability to serve the TAY population in Santa Barbara by providing them with stable housing, case management support, and access to the foundation’s resources.

Discussion
State HCD Homekey Program Funding
The Turner Foundation is applying for competitive State HCD Homekey funds to help finance the acquisition and rehabilitation of the property, which will provide eight permanent housing units for transitional-age youth who are homeless or at-risk of homelessness. The County of Santa Barbara’s Community Action Plan to Address Homelessness identified the need for 835 permanent supportive housing units.

A key consideration by the State for the award of Homekey funding is a local funding match. The Turner Foundation must provide reasonable assurance to the State of matching contributions to cover operations and service costs for five years. The estimated cost of operations is $215,400 annually. The Homekey application would provide an estimated $403,000 in operations funding for three years. The remaining operations and service costs for the first four years will be funded with tenant and Section 8 rents; no additional operations and services subsidy is required for the first seven years. The staff- Finance Committee Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
July 25, 2023

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recommended actions do not commit the City to ongoing funding support for the project thereafter.

If awarded State HCD Homekey funding, the majority of the overall property acquisition costs will come from Homekey funding. AB 140 (2021) provided the statutory basis for Homekey Round 3, which is administered by State HCD. The State has made available approximately $736 million in Homekey funding. Homekey is a significant statewide effort to sustain and expand housing for persons at risk of homelessness or experiencing homelessness. Of the $736 million in Homekey funding, $435 million is from the State’s allocation of the federal ARPA Coronavirus State Fiscal Recovery Fund, and $301 million is from the State General Fund. Projects receiving an award from the State’s direct allocation of ARPA funds must expend such funds within eight months of the date of award.

The portion of a project’s award derived from the State General Fund must be expended by June 30, 2026. The Notice of Funding Availability (NOFA) for Homekey Round 3 was released on March 29, 2023. The project will not move forward if Homekey funding is not awarded.

To help ensure equitable distribution of Homekey funds throughout California, the State created eight regions, with Santa Barbara County falling into the Central Coast region, along with Monterey, San Benito, San Luis Obispo, and Santa Cruz counties. Using a formula that considers a 2022 Point-in-Time Count and the number of severely rentburdened households, the Central Coast region has an estimated allocation of $22.6 million in Homekey funds. Other set-asides were established for Homeless Youth and Tribal Entities. State HCD opened an application portal on April 24, 2023, and awards will be made on a continuous, over-the-counter basis, with a final application due date of July 28, 2023, or until funds are exhausted (whichever occurs first). Eligible applicants are cities, counties, cities and counties, Local Public Entities such as housing authorities, and councils of government or tribal entities. The application allows for governmental entities to apply independently or jointly with a nonprofit or for-profit corporation as a co-applicant.

The Homekey application evaluates and scores the following criteria for projects qualified for award, including evidence of site control and suitability for development (20 points); rental or operating subsidies (40 points); experience and coordination (40 points); community impact and site selection (76 points); and relocation impacts (-20 points).

Projects must score a minimum of 100 points to receive an award of Homekey funds.

Proposed Property
The Turner Foundation has executed a purchase and sale agreement on the property, which is an eight-unit, two-story property near Mission Street on the Westside. If funded, the project will provide permanent supportive housing for TAY.

The Turner Foundation’s State HCD Homekey grant funding application will be submitted with the County listed as co-applicant. The property would be owned by the Turner Finance Committee Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
July 25, 2023

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Foundation as per the purchase and sale agreement, and State HCD Homekey funds would be awarded directly to the Turner Foundation.

The State Homekey grant NOFA includes a formula for applicants to estimate a potential State award amount and local match requirements based on the number of interior doors in a property. The estimated grant amount is based on 8 residential units, or “doors.” The Homekey grant, if awarded, would provide an estimated total operating subsidy of up to $403,000 per year.

Relocation Plan
The Turner Foundation has developed a comprehensive relocation plan for current tenants of the property who will need to be relocated. The Lighthouse and the Village, which are reserved for low-income households and are both owned by the Turner Foundation, are located in the same neighborhood as the proposed property. There are currently four oneunit apartments available that can be provided as relocation options. The size of these units is comparable to the size of the units in the property and would be offered at comparable rents, ensuring the base rent the tenants are currently paying remains the same.

According to Homekey program conditions, the Turner Foundation would have one year upon acquiring the property to relocate the tenants. Historically, the Turner Foundation has provided that a one-bedroom unit becomes available at the Lighthouse or the Village every month, so the Turner Foundation anticipates being able to relocate the remaining four individuals within that timeframe. As part of the relocation plan, all individuals will receive support from both the Turner Foundation and the County.

Funding Request
If the application for approximately $3,100,000 in State Homekey grant funds is awarded, $915,000 in matching funds, on a one-time basis, will be required for capital costs. Staff has been in discussions with both The Turner Foundation and the County on the proposal for this acquisition. On July 18, 2023, the County of Santa Barbara Board of Supervisors approved matching the City’s one-half contribution requirement, meaning each agency will provide one-half, or $457,500, of the total amount of $915,000.

City Loan
If approved, the proposed $457,500 will be in the form of a City loan with a 30-year term bearing 4.5 percent simple interest and a maturity date in November 2053. Payments will be due on the loan on a “residual receipts” basis, meaning payments will be due after the property’s net cash flow (after operating expenses) is sufficient to support such payments.

Any unpaid balance remaining at the end of the term is due and payable in full on maturity.

These terms are typical of affordable housing loans. The loan agreement and a deed of Finance Committee Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
July 25, 2023

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trust are recorded against the property to secure the City loan.

Long-Term Affordability
As a condition of the City’s loan, a City Affordability Control Covenant Imposed on Real Property (Covenant) is required to ensure that the property remains affordable to Low-Income residents for 90 years. The City’s portion of $457,500 in funding results in a per-unit cost of approximately $57,000. This is an excellent opportunity to place eight housing units under a long-term City covenant, given that building new units currently costs over $700,000 per unit.

Key Homekey Contract Risks
If the State awards Homekey funds, the Turner Foundation will be required to sign and record regulatory agreements to operate the property as supportive housing for the target population of youth experiencing homelessness or at-risk of homelessness for a period of at least 55 years, or risk being required to repay the Homekey funds to the State, plus penalties.

All entities in the grantee structure (including the County and City) shall be bound by the Homekey Program requirements and shall remain jointly and severally liable to State HCD for performance under the Standard Agreement and for compliance with all Homekey Program requirements. To mitigate this risk, the County will be requiring the Turner Foundation to execute and record a deed of trust against the property in favor of the County, and has requested first-priority, senior lien position on title with respect to other liens to be recorded against the property. This requires the City to agree to subordinate the City’s loan agreement, deed of trust, and affordability covenant to all State HCD and County agreements, liens, and regulatory agreements, which is typical for that top-down government structure order.

The State will conduct ongoing monitoring to ensure that the property is being administered in accordance with the Homekey Program. The State will enter into a Standard Agreement with the Turner Foundation. City housing staff will be responsible for ensuring compliance with the City’s loan agreement and affordability covenant.

Conclusion
Staff recommends approval of the City’s participation in the acquisition of the property as outlined above in the Recommendation section. This is an excellent opportunity for leveraging funding from both the State HCD Homekey Program and the County of Santa Barbara in a partnership with the City to acquire eight permanent low-income housing units with supportive housing services for TAY who are homeless or at-risk of homelessness.

Finance Committee Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue
July 25, 2023

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BUDGET/FINANCIAL INFORMATION:

There are sufficient funds available for this City loan project in the adopted Fiscal Year 2024 HOME-ARP Fund budget. HOME-ARP funding may be used to address certain populations that are homeless or at risk of homelessness, including transitional-age youth.

If approved, the total City contribution will be $457,500. This project would use 26% of the total amount of available HOME-ARP funding and leave approximately $1.3 million for future projects.

ATTACHMENTS: 1. The Turner Foundation’s Request Letter

2. County of Santa Barbara Board of Supervisors Agenda
Letter for July 18, 2023

3. Draft Ordinance
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’sOffice
ATTACHMENT 1

BOARD OF SUPERVISORS

AGENDA LETTER
Clerk of the Board of Supervisors
105 E. Anapamu Street, Suite 407
Santa Barbara, CA 93101
(805) 568-2240
Agenda Number:

Department Name: Community Services
Department No.: 057
For Agenda Of: July 18, 2023
Placement: Administrative
Estimated Time: N/A
Continued Item: No
If Yes, date from:

Vote Required: Majority
TO: Board of Supervisors
FROM: Department
Director(s)
George Chapjian, Community Services Director (805)568-2485 Contact Info: Kimberlee Albers, Homelessness Assistance Program Manager (805)560-1090
SUBJECT: 2023 Homekey Program Application for District 1 County Counsel Concurrence Auditor-Controller Concurrence As to form: Yes As to form: Yes
Risk Management
As to form: Yes
Recommended Actions: That the Board of Supervisors:

A) Authorize the Community Services Director or designee to submit to the State of California Department of Housing and Community Development (State HCD) a grant application for the 2023 Homekey Program in an amount not to exceed $3,100,000 for the acquisition of 2011 Oak Avenue, Santa Barbara, CA 93101 (Property), including all certifications, standard forms, and other related documents (Application);
B) Adopt a Resolution authorizing the Application and participation in the Homekey Program, and the acceptance and administration of Homekey funds (Attachment 2); C) Approve a reservation of up to $915,000 in funds made available by the Coronavirus Aid, Relief and Economic Security Act (CARES), or other available local, State or federal funds that have been allocated to the County, which will serve as capital matching funds required under the Homekey program for the acquisition of the Property by the Turner Foundation, and authorize the Community Services Director to execute a Reservation Letter (Attachment 1); and D) Determine that the recommended actions are exempt from the California Environmental Quality Act (CEQA) pursuant to California Health and Safety Code Section 50675.1.4, finding that the proposed “Homekey” project is to provide housing for individuals and families who are experiencing homelessness. and that the project satisfies the requirements described more fully in Section 50675.1.4.

ATTACHMENT 2
Submission of Homekey Grant Applications
July 18, 2023

Page 2 of 4 ends

Summary Text:

This Board Letter is before the Board because the Turner Foundation requested that the County satisfy CEQA requirements and provide local capital match as required for submitting a Homekey application to purchase the Property (Project). The Project would provide 8 permanent housing units for youth who are homeless or at-risk of homelessness. The Community Action Plan to Address Homelessness identifies the need for 835 permanent supportive housing units. The Turner Foundation is applying for competitive State of California Department of Housing and Community Development (State HCD) Homekey funds to help finance acquisition and rehabilitation of the Property. A key consideration by the State for the award of Homekey funding is a local funding match.

If the application for approximately $3,100,00 in State Homekey grant funds is awarded, the County provide $457,500 in one-time matching funds for capital costs. These funds are not to exceed $915,000 of CARES funds previously set aside by the Board of Supervisors on July 14, 2020, for supporting vulnerable populations including unsheltered individuals during COVID-19 Recovery. The Turner Foundation must also provide reasonable assurance to the State of matching contributions to cover operations and service costs for five (5) years. The estimated cost of operations is $215, 400. The Homekey application would provide an estimated $403,000 in operations funding for three years. The remaining operations and service costs for the first four (4) years will be funded with tenant and Section 8 rents; no additional operations and services subsidy is required for the first seven years. The recommended actions do not commit the County to ongoing funding support for the Project thereafter.

According to Project Homekey program guidelines, the local funding match requirement can be evidenced in the application by a letter demonstrating the intent to commit funds to the Project. The attached reservation letter evidences intent to commit funds, but is non-binding; if the Homekey application is awarded, the County will need to commit matching funds by approving funding agreements with the Turner Foundation. The City of Santa Barbara will consider contributing approximately $457,500 towards the Project.

Background:

AB 140 (2021) provided the statutory basis for Homekey Round 3, which is administered by State HCD.

The State has made available approximately $736 million in Homekey funding. Homekey provides a significant statewide effort to sustain and expand housing for persons experiencing homelessness or at risk of homelessness. Of the $736 million in Homekey funding, $435 million is from the State’s allocation of the federal ARPA Coronavirus State Fiscal Recovery Fund, and $301 million is from the State General Fund. Projects receiving an award from the State’s direct allocation of ARPA funds must expend such funds within eight months of the date of award. The portion of a project’s award derived from the State General Fund must be expended by June 30, 2026. The Notice of Funding Availability for Homekey Round 3 was released on March 29, 2023. To date, applicants in Santa Barbara County have been awarded over $28 million in Homekey funds through the following three projects:
• Homekey Studios, Lompoc ($3.12 million)
• Hedges House of Hope, Isla Vista ($6.99 million)
• Buena Terra, Goleta ($18.35 million)
To help ensure equitable distribution of Homekey funds throughout the State, the State created eight regions, with Santa Barbara County falling into the Central Coast region, along with Monterey, San Benito, San Luis Obispo, and Santa Cruz counties. Using a formula that considers a 2022 Point-In-Time Submission of Homekey Grant Applications
July 18, 2023

Page 3 of 4 ends

count, and the number of severely rent-burdened households, the Central Coast region has an estimated allocation of $22.6 million in Homekey funds. Other set-asides were established for Homeless Youth and Tribal Entities. State HCD opened an application portal on April 24, 2023, and awards will be made on a continuous, over-the-counter basis, with a final application due date of July 28, 2023, or until funds are exhausted (whichever occurs first). Eligible applicants are cities, counties, cities and counties, Local Public Entities such as housing authorities, councils of government or tribal entities. The application allows for governmental entities to apply independently or jointly with a nonprofit or for-profit corporation as a co-applicant.

Santa Barbara Project
On July __, 2023 the Turner Foundation executed a property purchase and sale agreement for 2011 Oak Avenue in the city of Santa Barbara. The Property is an 8-unit, two-story property near Mission Street on the Westside. If funded, the Project will provide permanent supportive housing for transitional age youth.

Attachment 2 is a Board resolution (Resolution) authorizing the submission of the Turner Foundation’s State HCD Homekey grant funding application for the Project, with the County listed as co-applicant. The Property would be owned by the Turner Foundation of the purchase and sale agreement, and State HCD Homekey funds would be awarded directly to the Turner Foundation. The Application must identify potential funding sources to provide a reasonable assurance of matching contributions to cover operations and services for five (5) years. Because of application funding variables, the resolution reflects a Homekey grant application request not to exceed $3.1 million. The Resolution further specifies that the Community Services Department Director, or designee, is authorized to execute the Application and the Homekey documents on behalf of the County as co-applicant.

The State Homekey grant NOFA includes a formula for applicants to estimate a potential State award amount and local match requirements based on the number of interior doors in a property. The estimated grant amount is based on 8 residential units, or “doors”. The Homekey grant, if awarded, would provide an estimated total operating subsidy of up to $403,000 per year.

Fiscal and Facilities Impacts:

Budgeted: No. Staff will return with a Budget Revision request with the actual grant award amount, if application is successful.

Fiscal Analysis:

Submission of Homekey Grant Applications
July 18, 2023

Page 4 of 4 ends

General Fund
State
Federal 457,500
Fees
Other:

Total $ - $ 457,500.00 $ -
Narrative: This Board letter identifies County’s estimated total recommended contribution (match of up to $915,000 to the Turner Foundation), in capital match. The City of Santa Barbara is anticipated to contribute $457,500 in match funding, making the County’s match $457,500 as well.

Key_Contract_Risks:

If the State awards Homekey funds, the Turner Foundation will be required to sign and record regulatory agreements to operate the Project as supportive housing for the target population of youth experiencing homelessness or at risk of homelessness for a period of at least 55 years, or risk being required to repay the Homekey funds to the State, plus penalties.

All entities in the Grantee structure (including the County) shall be bound by the Homekey Program Requirements, and shall remain jointly and severally liable to State HCD for performance under the Standard Agreement and for compliance with all Homekey Program Requirements. To mitigate this risk, the County would require that the Turner Foundation execute and record a deed of trust against the Property in favor of the County, and has requested first priority, senior lean position with respect to other liens to be recorded against the Property.

The State will conduct ongoing monitoring to assure that the Property is being administered in accordance with the Homekey Program. The State will enter into a Standard Agreement with the Turner Foundation.

Staffing Impacts:

Legal Positions: FTEs:

No new staffing impacts. The Project will be administered by the Turner Foundation. Administration of operating match funds will be overseen by existing County staff.

Special Instructions:

1. Staff will provide an agreement date to the Clerk of the Board before July 18th. If an agreement date in not set by July 18th, staff will withdraw this item from the Administrative Agenda.

2. Please return one copy of the Minute Order to Kimberlee Albers at [email protected] Electronic signatures and transmittal are acceptable.

Attachments: Reservation of Funding for the State Homekey Project

2. Resolution
1 ATTACHMENT 3
DRAFT
ORDINANCE NO._____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A LOAN AGREEMENT

TO TURNER FOUNDATION IN THE AMOUNT OF
$457,500 FOR ACQUISITION OF THE REAL PROPERTY
LOCATED AT 2011 OAK AVENUE TO BE USED FOR

LOW-INCOME TRANSITIONAL AGE YOUTH HOUSING,

TO BE SECURED BY A DEED OF TRUST AND A

NINETY-YEAR AFFORDABILITY CONTROL COVENANT

IMPOSED ON REAL PROPERTY AND AUTHORIZING

THE COMMUNITY DEVELOPMENT DIRECTOR TO

EXECUTE SUCH AGREEMENTS AS NECESSARY
WHEREAS, THE TURNER FOUNDATION ("Owner'') is acquiring real property commonly known as 2011 Oak Avenue in the City of Santa Barbara ("Property); and WHEREAS, by minute action on July 25, 2023, the City Council introduced an ordinance to approve a 30- year loan in the amount of Four Hundred Fifty-Seven Thousand Five Hundred Dollars ($457,500) from the HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) Fund ("City Loan"), secured by a deed of trust and a ninety-year affordability control covenant; 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 August 1, 2023, the City Council, adopted by reading of title only an ordinance approving the City Loan, Deed of Trust and Covenant; and WHEREAS, the City Loan is secured by the Deed of Trust recorded in the office of the County Recorder on ____ , 2023, as Instrument No. of official records for the purpose of securing Owner's obligations under the City Loan; and 2 WHEREAS, Owner agrees to comply with Covenant recorded in the office of the County Recorder on , 2023, 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 and authorizing approval by resolution of subsequent minor amendments to the agreements that do not extend their term, is hereby approved.

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Finance Committee
FROM: Administration Division, Finance Department
SUBJECT: Reserve Policy Discussion and Direction
RECOMMENDATION: That Finance Committee:

A. Review and provide direction regarding staff recommended changes to Resolution No. 22-126 establishing policies for reserves for the City’s General Fund, Enterprise Funds, and Internal Service Funds; and
B. Recommend that the City Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Repealing Chapter 17.40 Pertaining to the Purpose, Accumulation, and Use of Funds within the Harbor Preservation Fund.

DISCUSSION:

The establishment, adherence, and continuous monitoring of a reserve policy is a local government best practice. The City strategically leveraged reserves in recent years to be able to respond to local fires and other disasters, impacts from COVID, and other annual budget fluctuations in order to sustain operations and continue to provide services to the public. The City’s reserve policy sets reserve amounts for disaster and contingency reserves as well as laying out a process for requiring a balancing strategy and plan for replenishment.

Disaster reserves are calculated on 15% of the most recently adopted expenditure budget and are restricted to use in addressing impacts of natural disasters, such as storm, floods, wildfires, and droughts, among other events. Contingency reserves are calculated on 10% of the most recently adopted expenditure budget and may be used to address fiscal impacts of unexpected events, such as an unexpected loss of funding and damage to a City facility, among other events.

File Code No. 120.03 ile Code No. 120.03
Finance Committee Agenda Report
Reserve Policy Discussion and Direction
July 25, 2023

Page 2 ends

Any use of disaster or contingency reserves requires an assessment of the fiscal condition and outlook, a balancing strategy to minimize the use of reserves in the future, and a plan to replenish reserves.

On December 7, 2021, the Finance Committee received a presentation from staff regarding the significant pension costs and liabilities and considerations for implementing various pension management strategies to control and reduce pension costs in the future.

The Committee directed staff to research and propose a pension management policy for consideration. Staff is developing the pension management policy and plans to bring it to the Finance Committee early in FY2024 for consideration. Direction was also provided to staff during FY2023 budget hearings to consider revisions to the reserve policy to address pensions and possibly other priorities.

At the Finance Committee meeting on September 27, 2022, staff proposed eliminating the requirement that 50% of any annual operating General Fund surplus go to capital and require that a proportional share of annual operating surpluses in the City’s General Fund, Enterprise and Internal Service funds be allocated to address pension-related expenses and future liabilities. On December 6, 2022, the City Council voted unanimously to approve Resolution No. 22-126 establishing one, consolidated, citywide reserve policy including staff’s proposed change of 50% of annual operating surplus be allocated to address pension-related expenses.

The Waterfront Department’s capital reserve requirement is currently met through the Harbor Preservation Fund (HPF). Pursuant to Chapter 17.40 of the Santa Barbara Municipal Code, the HPF is required to maintain no less than $2 Million for preservation and enhancement of properties, with a target amount of $5 Million. Staff is recommending repealing Chapter 17.40 and transferring the HPF funds into the Waterfront Capital Fund to be more effectively managed. The Waterfront Department, like all other Enterprise Funded departments, will be required to adhere to Section 5 of the Reserve Policy which will establish a capital reserve of 5% of the value of capital assets or an amount equal to the average of the planned capital program budgets for the upcoming three years. This change will help to ensure that the Waterfront Department is adequately planning for and funding capital improvement projects in the future.

During the FY2024 budget deliberation public hearing on June 7, 2023, the City Council gave direction to staff to review Resolution No. 22-126 and direct staff to work with the Finance Committee during FY2024 to develop a plan to replenish reserves by FY2026.

Staff is seeking the Finance Committee’s direction regarding staff’s recommended changes to the City’s reserve policy and direction to replenishing reserves.

BUDGET/FINANCIAL INFORMATION:

There is no direct budget or financial impact by receiving direction from the Finance Committee regarding potential changes to the City’s reserve policy. Reserves have been utilized in recent years to minimize the impact to the City’s budget from fluctuations in the Finance Committee Agenda Report
Reserve Policy Discussion and Direction
July 25, 2023

Page 3 ends

economy and natural and other disasters. Through exercising strong fiscal discipline and budgetary practices, the City has been able to replenish reserves that can be utilized in future years.

If the existing reserve policy were to be amended by reducing the disaster and/or contingency reserve percent, fewer reserves will be required to adhere to the policy, which will result in fewer resources available to be used to address budget fluctuations and natural and other disasters. It may also affect the City’s credit rating which is evaluated annually and will be considered by rating agencies for the planned debt issuance for the Policy Headquarters capital project.

ATTACHMENTS: 1. Resolution No. 22-126 Establishing Policies for Reserves for the City’s General Fund, Enterprise Funds, and Internal Service Funds

2. Staff’s Recommended Changes to the City’s Reserve Policy PREPARED BY: Keith DeMartini, Finance Director
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
RESOLUTION NO. 22-126

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA ESTABLISHING POLICIES FOR

RESERVES FOR THE CITY'S GENERAL FUND,

ENTERPRISE FUNDS, AND INTERNAL SERVICE FUNDS,
AND AMENDING RESOLUTION NO. 12-066 AND
RESCINDING RESOLUTION NO. 18-056.

WHEREAS, the City desires to establish policies regarding reserves for the various City funds for the purpose of providing consistent designations for different categories of reserves, ensuring fiscal security for the funds, and defining standards for minimum amounts to be maintained in reserves;
WhlEREAS, such reserves policies will be most readily communicated and understood if they are consolidated and formally adopted in a single document; WHEREAS, the Council has considered the proposed reserve policies applicable to the General Fund, Enterprise Funds, and Internal Sen/ice Funds at a regular Council meeting on December 6, 2022.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CIT»' OF SANTA BARBARA THAT the following reserves policies are adopted:

SECTION 1: CALCULATION OF RESERVE AMOUNTS
Final reserve balances will be calculated at end of each fiscal year after the closing of the City's accounting records. An amount will be established for each fund, as applicable, as a commitment of fund balance for each type of reserve established by this policy.

As soon as practical after the close of a fiscal year, staff will provide City Council a report showing the status of reserves as of June 30. At any time it is proposed to utilize reserves pursuant to this policy, staff will provide a similar report on reserves and projected fiscal impact from the proposed use of reserves.

SECTION 2: DISASTER RESERVES
The amount of the required Disaster Reserve is calculated based on 15% of the most recently adopted fiscal year operating expenditure budget.

The Disaster Reserve is restricted to use in addressing the financial impacts of natural disasters, such as storm, floods, wildfires, droughts, tsunamis, earthquakes and any other event that results in significant damage to City facilities and infrastructure or a significant reduction of normal operating revenues.
1 ATTACHMENT 1
The use of Disaster Reserves should generally be limited to federal or state declared disasters. The use of Disaster Reserves is also allowable in cases where the natural disaster, is less severe, such as a major fire to a City building that requires temporary facilities to be leased. Disaster reserves may be used only after other available funds are exhausted, including the Contingency Reserve.

Examples of financial impacts that would justify the use of Disaster Reserves include. . Extraordinary costs incurred in connection with the immediate emergency response to address public safety matters. , ..
. Revenue losses resulting from a significant decline or temporary halt in services due to major damage to facilities, infrastructure and local businesses. . Additional costs necessary to maintain City operations. . Long-term costs incurred to rebuild City facilities and infrastructure.

SECTION 3: CONTINGENCY RESERVES
The Contingency Reserve is calculated based on 10% of the most recently adopted fiscal year operating expenditure budget.

The purpose of the Contingency Reserve is to allow for the orderly implementation of a balancing strategy to address the fiscal impacts of unexpected events in order to minimize the impacts to the organization and community. The most common of these events would be an economic recession that results in a significant impact on key revenues such as sales, transient occupancy or property taxes.

Other unexpected events for which these reserves could be used include the following:
. Natural disasters, as described above for Disaster Reserves; . Revenue impacts resulting from State of California actions or unfunded State mandates;
. Unexpected loss of external funding from sources such as grants or entitlements; . An unplanned loss of, or damage to, a City facility such as the loss of a building due to fire;
. Mitigation of an emergency that poses a threat to public health and safety; and . An adverse judicial action that requires large cash payments to third parties and is not covered by insurance.

The general intent of the Contingency Reserve is for unexpected events or situations. In general, its purpose is not to fund known or anticipated financial impacts, such as negotiated salary and benefit increases or scheduled increases to health insurance premiums or retirement costs.

SECTION 4: COUNCIL APPROVAL OF DISASTER AND CONTINGENCY RESERVES 2 Any use of the Disaster or Contingency reserves described in Sections 2 and 3 requires a majority vote of approval by the City Council.

When the use of reserves is recommended to the City Council by staff, the justification should include the following elements:

An Assessment of the Fiscal Condition and Outlook:

This assessment should include an objective evaluation ofthe, operating fund's fiscal condition and an evaluation of the impacts of the event that triggered the need to use reserves. The purpose of this evaluation is to measure and define the scope and duration of the problem to assist in developing an appropriate balancing strategy.

This assessment of fiscal condition should include the use of available and relevant financial and non-financial data, including economic and demographic indexes and trends; historical revenue and expenditures results; and local economic forecasts developed by recognized academic and financial institutions and paid consultants.

Balancin Strate
The balancing strategy should include measures that minimize the use of Contingency Reserves, such as:
. Expenditure reductions achieved through efficiency measures, cuts to programs, services and associated staffing;
. Revenue enhancement measures that generate new or increased revenues; . Use of existing one-time funds; and
. Use of available reserves in other funds, as allowable and appropriate.

The balancing strategy should also be consistent with the nature of the fiscal impact.

For example, a one-time impact may be resolved fully with the use of reserves, depending on its severity. However, an event that has an ongoing financial impact, such as decline in revenues due to a major recession, will require a balancing strategy that includes ongoing budget and programmatic adjustments to "linimize the use of reserves.

Plan of Re lenishment
The replenishment plan should include the following elements, as appropriate:
. A one-time (one-year) use of reserves should be accompanied by a specific plan for how and when the reserves will be restored.
. An extended use of reserves for more than one year should be accompanied by a long-term strategy that includes a more general plan for how the reserves will be restored.
3 SECTION 5: ENTERPRISE FUNDS
Enterprise Funds will be subject to the same Disaster and Contingency Resen/e and approval requirements as described inSections 2, 3 and 4 of this Resolution.

Appropriations from Capital reserves are intended to address an unexpected capital project or unanticipated increase in capital projects. Capital reserves might also be funded in excess of the minimum in preparation for major (pay-go or cash funded) capital projects.

Another option for funding major future capital projects is a Working Capital reserve.

These specific capital reserves would be designated for the replacement of critical infrastructure projected to be funded within a ten-year period. There is no minimum for these reserves as they will function as a working capital reserve for funding of large and costly infrastructure on a routine basis. These include the Council approved Desalination Reserve (Resolution No. 21-082), as well as Main Replacement Reserves (restricted to maintaining, rehabilitating, and installing new main or transmission pipelines) in the Water and Wastewater Enterprise Funds.

Bond funding for the Water and Wastewater Enterprise Funds requires a rate stabilization reserve (as outlined in the 2013 and 2016 bond documents, Resolution No. 13-029 and 16- 168 respectively). The minimum reserve requirement for the rate stabilization fund is $2.9 million and $1. 0 million for the Water and Wastewater Funds respectively. These funds are differentiated from Disaster, Contingency and Capital reserves as they can be considered revenue for the purpose of debt service coverage in a given fiscal year, if they are transferred within 150 days of the end of the prior fiscal year. These reserve funds are restricted and must be maintained and used only for this purpose. Staff may make additional deposits to this reserve if there are anticipated threats to revenues that might exceed the minimum reserve. This might include increasing probability of drought and the need for mandatory water conservation, or other negative impacts on revenues that might reasonably be expected. Deposits into the rate stabilization fund must be reflected as reductions in revenues for the year the deposits are made.

For the Waterfront Enterprise Fund, the Capital Reserve requirement will be met through reserves accumulated in the Harbor Preservation Fund (HFP). Pursuant to Chapter 17.40 of the Santa Barbara Municipal Code, the HFP is required to maintain reserves of no less than $2 million for preservation, enhancement and management of Waterfront and State 4 Tidelands Trust properties.

Where applicable, each Enterprise shall maintain any required debt service reserve to support the long-term borrowing and shall be restricted to the level of indebtedness of the utility.

The City shall also consider establishing a line of credit with a banking institution that may be leveraged for financing capital projects and in the event of a disaster. Leveraging a line of credit is a viable risk management approach and may address short-term cash flow needs and lessen the need to require disaster reserves in the future. A line of credit shall not be used to pay for operating expenses. The cost of establishing a line of credit shall be considered in relation to the investment earnings that may be achieved through investing funds in line with the City's investment policy and other operating considerations.

SECTION 6: RESERVE REQUIREMENTS FOR INTERNAL SERVICE FUNDS Internal Service Funds are not subject to the reserve requirements for Disaster Reserves or Contingency Reserves. Instead, Internal Service Funds will maintain an operating reserve equal to 10% of the operating budget of the most recently adopted budget. This reserve will be available to address unexpected events and natural disasters that affect the operations and revenue streams of the Internal Service Funds.

All Internal Service Funds will be subject to the 10% reserve requirement, with the exception of the Self-lnsurance Fund, which by design builds up assets for the payment of claims several years into the future, and the Facilities Management Fund, which is based on 10% of the adopted Building Maintenance Program Budget. As a result, there should be adequate cash reserves to cover unanticipated costs. In addition, the reserve requirements do not apply to Internal Service Funds that are specifically designed to accumulate reserves for capital, such as the Vehicle Replacement Fund.

SECTION 7: APPROPRIATED RESERVES
An Appropriated Reserve will be included in each operating fund's adopted budget to provide for unanticipated expenditures or to meet unexpected small increases in service delivery costs within the fiscal year. For the General Fund, the appropriated reserve should be at least $250, 000. For Enterprise and Internal Service operating funds, this reserve will be at least one-half of one percent of the operating budget. Any unused portion of the appropriated reserve in each fund will be returned to fund balance at the end of the fiscal year.

SECTION 8: ALLOCATION OF GENERAL FUND, ENTERPRISE FUNDS AND

INTERNAL SERVICE FUNDS YEAR-END SURPLUS TO PENSION EXPENSES AND

LIABILITIES
At the end of each fiscal year, any General Fund, Enterprise Funds and Internal Service Funds surplus realized from actual revenues exceeding actual expenditures including the annual capital program will be used to maintain reserve balances at levels required by this policy as well as address pension-related expenses and future liabilities. The amount of reserves to be transferred to a Section 115 trust to addresspension-related expenses and future liabilities will be determined based on the proportional bjyrden of expenses and liabilities in each fund. Maintaining reserve balances will be the highest priority, followed by addressing pension-related expenses and future liabilities.

SECTION 9. RESOLUTION NO. 18-056
Resolution No. 18-056 is hereby rescinded in its entirety RESOLUTION NO. 22-126

STATE OF CALIFORNIA )
)
COUNTY OF SANTA BARBARA ) ss.
)

CITI' OF SANTA BARBARA )
I HEREBY CERTIFY that the foregoing resolution was adopted by the Council of the City of Santa Barbara at a meeting held on December 6, 2022, by the following roll call voteAYES: Councilmembers Eric Friedman, Oscar Gutierrez, Meagan Harmon, Mike Jordan Kristen W. Sneddon, Mayor Randy Rowse
NOES: None
ABSENT: CouncilmemberAlejandra Gutierrez
ABSTENTIONS: None
IN WITNESS WhlEREOF, I have hereto set my hand and affixed the official seal of the City of Santa Barbara on Decembefc8.^2022.
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1 RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OFSANTA

BARBARA ESTABLISHING POLICIES FOR RESERVES FOR
THE CITY’S GENERAL FUND, ENTERPRISE FUNDS AND

INTERNAL SERVICE FUNDS, AND AMENDING RESOLUTION
NO. 12-066 AND RESCINDING RESOLUTION NO. 18-056.

WHEREAS, the City desires to establish policies regarding reserves for the various City funds for the purpose of providing consistent designations for different categories of reserves, ensuring fiscal security for the funds, and defining standards for minimum amounts to be maintained in reserves;
WHEREAS, such reserves policies will be most readily communicated and understood if they are consolidated and formally adopted in a single document; WHEREAS, the Council has considered the proposed reserves policies applicable to the General Fund, Enterprise Funds, and Internal Service Funds at a regular Council meeting on ; and
WHEREAS, the Council has considered the proposed reserve policies applicable to the General Fund, Enterprise Funds, and Internal Service Funds at a regular Council meeting on _________.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT the following reserves policies are adopted:

SECTION 2: DISASTER RESERVES
The amount of the required Disaster Reserve is calculated based on 15% of the most recently adopted fiscal year operating expenditure budget.

The use of Disaster Reserves should generally be limited to federal or state declared disasters. The use of Disaster Reserves is also allowable in cases where the natural disaster is less severe, such as a major fire to a City building that requires temporary facilities to be leased. Disaster reserves may be used only after other available funds are exhausted, including the Contingency Reserve.

Examples of financial impacts that would justify the use of Disaster Reserves include:
 Extraordinary costs incurred in connection with the immediate emergency response to address public safety matters.
 Revenue losses resulting from a significant decline or temporary halt in services due to major damage to facilities, infrastructure and local businesses.  Additional costs necessary to maintain City operations.  Long-term costs incurred to rebuild City facilities and infrastructure.

SECTION 3: CONTINGENCY RESERVES
The Contingency Reserve is calculated based on 10% of the most recently adopted fiscal year operating expenditure budget.

Other unexpected events for which these reserves could be used include the following:
 Natural disasters, as described above for Disaster Reserves;  Revenue impacts resulting from State of California actions or unfunded State mandates;
 Unexpected loss of external funding from sources such as grants or entitlements;  An unplanned loss of, or damage to, a City facility such as the loss of a building due to fire;
 Mitigation of an emergency that poses a threat to public health and safety; and  An adverse judicial action that requires large cash payments to third parties and is not covered by insurance.

3 SECTION 4: COUNCIL APPROVAL OF DISASTER AND CONTINGENCY

RESERVES
Any use of the Disaster or Contingency reserves described in Sections 2 and 3 requires a majority vote of approval by the City Council.

When the use of reserves is recommended to the City Council by staff, the justification should include the following elements:

An Assessment of the Fiscal Condition and Outlook:

This assessment should include an objective evaluation of the operating fund's fiscal condition and an evaluation of the impacts of the event that triggered the need to use reserves. The purpose of this evaluation is to measure and define the scope and duration of the problem to assist in developing an appropriate balancing strategy.

Balancing Strategy
The balancing strategy should include measures that minimize the use of Contingency Reserves, such as:
 Expenditure reductions achieved through efficiency measures, cuts to programs, services and associated staffing;
 Revenue enhancement measures that generate new or increased revenues;  Use of existing one-time funds; and
 Use of available reserves in other funds, as allowable and appropriate.

The balancing strategy should also be consistent with the nature of the fiscal impact. For example, a one-time impact may be resolved fully with the use of reserves, depending on its severity. However, an event that has an ongoing financial impact, such as decline in revenues due to a major recession, will require a balancing strategy that includes ongoing budget and programmatic adjustments to minimize the use of reserves.

Plan of Replenishment
The replenishment plan should include the following elements, as appropriate:
 A one-time (one-year) use of reserves should be accompanied by a specific plan for how and when the reserves will be restored.
4  An extended use of reserves for more than one year should be accompanied by a long-term strategy that includes a more general plan for how the reserves will be restored.

SECTION 5: ENTERPRISE FUNDS
Enterprise Funds will be subject to the same Disaster and Contingency Reserve and approval requirements as described in Sections 2, 3 and 4 of this resolution.

Each Enterprise Operating Fund will establish a Capital Reserve, funded to at least 5% of the value of its capital assets. Alternatively, the Capital Reserve may also be established at an amount equal to the average of the planned capital program budgets for the upcoming three fiscal years, excluding major capital projects that will be debt funded. Appropriations from Capital reserves are intended to address an unexpected capital project or unanticipated increase in capital projects. Capital reserves might also be funded in excess of the minimum in preparation for major (pay-go or cash funded) capital projects.

Another option for funding major future capital projects is a Working Capital reserve.

Bond funding for the Water and Wastewater Enterprise Funds requires a rate stabilization reserve (as outlined in the 2013 and 2016 bond documents, Resolution No. 13-029 and 16-168 respectively). The minimum reserve requirement for the rate stabilization fund is $2.9 million and $1.0 million for the Water and Wastewater Funds respectively. These funds are differentiated from Disaster, Contingency and Capital reserves as they can be considered revenue for the purpose of debt service coverage in a given fiscal year, if they are transferred within 150 days of the end of the prior fiscal year. These reserve funds are restricted and must be maintained and used only for this purpose. Staff may make additional deposits to this reserve if there are anticipated threats to revenues that might exceed the minimum reserve. This might include increasing probability of drought and the need for mandatory water conservation, or other negative impacts on revenues that might reasonably be expected. Deposits into the rate stabilization fund must be reflected as reductions in revenues for the year the deposits are made.

The Solid Waste and Clean Energy Enterprise Operating Funds shall utilize the contingency reserve to buffer a significant loss in revenue or the impacts of significant rate increases. The use of these reserves should be considered one-time revenue as future rates will need to be adjusted to address any ongoing expense increases to operating the enterprise.
5 For the Waterfront Enterprise Fund, the Capital Reserve requirement will be met through reserves accumulated in the Harbor Preservation Fund (HFP). Pursuant to Chapter 17.40 of the Santa Barbara Municipal Code, the HFP is required to maintain reserves of no less than $2 million for preservation, enhancement and management of Waterfront and State Tidelands Trust properties.

Where applicable, each Enterprise shall maintain any required debt service reserve to support the long-term borrowing and shall be restricted to the level of indebtedness of the utility.

The City shall also consider establishing a line of credit with a banking institution that may be leveraged for financing capital projects and in the event of a disaster. Leveraging a line of credit is a viable risk management approach and may address short-term cash flow needs and lessen the need to require disaster reserves in the future. A line of credit shall not be used to pay for operating expenses. The cost of establishing a line of credit shall be considered in relation to the investment earnings that may be achieved through investing funds in line with the City’s investment policy and other operating considerations.

All Internal Service Funds will be subject to the 10% reserve requirement, with the exception of the Self-Insurance Fund, which by design builds up assets for the payment of claims several years into the future, and the Facilities Management Fund, which is based on 10% of the adopted Building Maintenance Program Budget. As a result, there should be adequate cash reserves to cover unanticipated costs. In addition, the reserve requirements do not apply to Internal Service Funds that are specifically designed to accumulate reserves for capital, such as the Vehicle Replacement Fund.

SECTION 7: APPROPRIATED RESERVES
An Appropriated Reserve will be included in each operating fund's adopted budget to provide for unanticipated expenditures or to meet unexpected small increases in service delivery costs within the fiscal year. For the General Fund, the appropriated reserve should be at least $250,000. For Enterprise and Internal Service operating funds, this reserve will be at least one-half of one percent of the operating budget. Any unused portion of the appropriated reserve in each fund will be returned to fund balance at the end of the fiscal year.
6 SECTION 8: ALLOCATION OF GENERAL FUND, ENTERPRISE FUNDS AND

INTERNAL SERVICE FUNDS YEAR-END SURPLUS TO PENSION EXPENSES AND

LIABILITIES
At the end of each fiscal year, any General Fund, Enterprise Funds and Internal Service Funds surplus realized from actual revenues exceeding actual expenditures including the annual capital program will be used to maintain reserve balances at levels required by this policy as well as address pension-related expenses and future liabilities. The amount of reserves to be transferred to a Section 115 trust to address pension-related expenses and future liabilities will be determined based on the proportional burden of expenses and liabilities in each fund. Maintaining reserve balances will be the highest priority, followed by addressing pension-related expenses and future liabilities.

SECTION 9. RESOLUTION NO. 18-056.

Resolution No. 18-056 is hereby rescinded in its entirety.

Agenda Item No. 1
File Code No. 120.04
1 ORDINANCE NO. _____

AN ORDINANCE OF THE COUNCIL OF THE CITY

OF SANTA BARBARA AMENDING THE

MUNICIPAL CODE BY AMENDING SECTIONS

9.16.030 AND 9.16.080 PERTAINING TO NOISE

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

SECTION 1. Section 9.16.030 of Chapter 9.16 of Title 9 of the Santa Barbara Municipal Code is amended to read as follows:

9.16.030 Specific Conduct Prohibited.

A. The following Subsections set forth specific conduct which shall be unlawful:

1. Radios, Television Sets, Musical Instruments and Similar Devices.

Operating, playing or permitting the operation or playing of any radio, television set, music player, drum, musical instrument, or similar device which produces or reproduces sound between the hours of 10:00 p.m. and 7:00 a.m. in such a manner as to create a noise disturbance audible by a person of ordinary sensitivity across a residential or commercial real property line.

2. Loudspeakers and Amplified Sound. Using or operating for any purpose any loudspeaker, loudspeaker system or similar device between the hours of 10:00 p.m. and 7:00 a.m. in such a manner that the sound creates a noise disturbance audible by a person of ordinary sensitivity across a residential real property line. The applicable hours shall be extended to 1:30 a.m. on the night before New Year's Day.

3. Animals and Birds. Keeping, maintaining or possessing or harboring any animal or bird which frequently or for long duration, howls, barks, meows, squawks or makes other sounds which create a noise disturbance audible by a person of ordinary sensitivity across a residential or commercial real property line.

B. Exclusions.

1. Amplification of sound by a person as part of an event or activity sponsored or approved by the County of Santa Barbara on property owned by or leased to the County, provided the County has adopted or approved a sound control plan for the property which is applicable to the event or activity.

2. Amplification of sound by a person as a part of an event or activity sponsored or approved by the County of Santa Barbara on property owned by or leased to the County of Santa Barbara and for which property the County has not developed a sound control plan.

Agenda Item No. 2
File Code No. 630.09
2 3. Amplification of sound by a person as part of an activity or event sponsored or approved by the City of Santa Barbara on property owned by or leased to the City of Santa Barbara.

4. Amplification of sound by a person as part of an activity or event sponsored by or approved by a nursery school or day care, elementary school, secondary school or college or university on property owned by or leased to the educational institution.

5. Amplification of sound by a person as part of an activity or event sponsored by or approved by a public entity on property owned by or leased to the public entity.

SECTION 2. Section 9.16.080 of Chapter 9.16 of Title 16 of the Santa Barbara Municipal Code is amended to read as follows:

9.16.080 Sound Amplification.

No person shall amplify sound using sound amplifying equipment contrary to any of the following:

A. The only amplified sound permitted shall be either music or the human voice or both.

B. Sound emanating from any public park or place shall not be amplified above the ambient noise level so as to be audible within any hospital, rest home, convalescent hospital, or church while services therein are being conducted.

C. The volume of amplified sound shall not exceed 60dB(A) when measured outdoors at or beyond the property line of the property from which the sound emanates.

D. The volume of amplified sound inside a structure shall not exceed 45dB(A) when measured inside a building used for residential purposes. This maximum noise level shall not apply to the dwelling unit from which the sound is emanating.

E. The limits set forth above shall not apply to the following:

3. Amplification of sound by a person as part of an activity or event sponsored or approved by the City of Santa Barbara on property owned by or leased to the City of Santa Barbara.
3 4. Amplification of sound by a person as part of an activity or event sponsored by or approved by a nursery school, elementary school, secondary school or college or university on property owned by or leased to said educational institution.

5. Amplification of sound by a person as part of an activity or event sponsored by or approved by a public entity on property owned by or leased to said public entity.

6. Up to 1:30 a.m. on the night before New Year's Day.

CITY OF SANTABARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: Housing and Human Services Division, Community
Development Department
SUBJECT: Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction; Agreement]
RECOMMENDATION: That 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 Turner Foundation in the Amount of $457,500 for Acquisition of the Real Property Located at 2011 Oak Avenue to Be Used for Low-Income Transitional Youth Housing, to Be Secured by a Deed of Trust, and Approving a Ninety-Year Affordability Control Covenant Imposed on Real Property, and Authorizing the Community Development Director to Execute Such Agreements as Necessary;
B. Approve the Subordination of the City’s Loan Agreement, Deed of Trust, and Affordability Covenant to the California Department of Housing and Community Development (HCD) and County of Santa Barbara Agreements, Liens, and Regulatory Agreements; and
C. Authorize the Community Development Director to execute a formal reservation of funding letter to be submitted to State HCD as part of the Homekey project application.

EXECUTIVE SUMMARY:

According to the 2023 County of Santa Barbara Point-in-Time Count performed on January 25, 2023, Transitional Age Youth (TAY) whose ages are between 18 and 24 years represents five percent of our community’s homeless population. State HCD has recently Agenda Item No. 3
File Code No. 660.04
Council Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction; Agreement]
July 25, 2023

Page 2 ends

begun measuring progress toward ending youth homelessness and has set aside funding to help house our most vulnerable young adults.

DISCUSSION:

A key consideration by the State for the award of Homekey funding is a local funding match. The Turner Foundation must provide reasonable assurance to the State of matching contributions to cover operations and service costs for five years. The estimated cost of operations is $215,400 annually. The Homekey application would provide an estimated $403,000 in operations funding for three years. The remaining operations and service costs for the first four years will be funded with tenant and Section 8 rents; no additional operations and services subsidy is required for the first seven years. The staff- Council Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction; Agreement]
July 25, 2023

Page 3 ends

recommended actions do not commit the City to ongoing funding support for the project thereafter.

Projects must score a minimum of 100 points to receive an award of Homekey funds.

The Turner Foundation’s State HCD Homekey grant funding application will be submitted with the County listed as co-applicant. The property would be owned by the Turner Council Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction; Agreement]
July 25, 2023

Page 4 ends

Foundation as per the purchase and sale agreement, and State HCD Homekey funds would be awarded directly to the Turner Foundation.

Any unpaid balance remaining at the end of the term is due and payable in full on maturity.

These terms are typical of affordable housing loans. The loan agreement and a deed of Council Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction; Agreement]
July 25, 2023

Page 5 ends

trust are recorded against the property to secure the City loan.

Council Agenda Report
Loan to the Turner Foundation for $457,500 for Acquisition of Property Located at 2011 Oak Avenue [Ordinance Introduction; Agreement]
July 25, 2023

Page 6 ends

BUDGET/FINANCIAL INFORMATION:

If approved, the total City contribution will be $457,500. This project would use 26% of the total amount of available HOME-ARP funding and leave approximately $1.3 million for future projects.

ATTACHMENTS: 1. The Turner Foundation’s Request Letter

2. County of Santa Barbara Board of Supervisors Agenda
Letter for July 18, 2023
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’sOffice
ATTACHMENT 1

BOARD OF SUPERVISORS

AGENDA LETTER
Clerk of the Board of Supervisors
105 E. Anapamu Street, Suite 407
Santa Barbara, CA 93101
(805) 568-2240
Agenda Number:

Department Name: Community Services
Department No.: 057
For Agenda Of: July 18, 2023
Placement: Administrative
Estimated Time: N/A
Continued Item: No
If Yes, date from:

ATTACHMENT 2
Submission of Homekey Grant Applications
July 18, 2023

Page 2 of 4 ends

Summary Text:

Background:

AB 140 (2021) provided the statutory basis for Homekey Round 3, which is administered by State HCD.

Page 3 of 4 ends

The State Homekey grant NOFA includes a formula for applicants to estimate a potential State award amount and local match requirements based on the number of interior doors in a property. The estimated grant amount is based on 8 residential units, or “doors”. The Homekey grant, if awarded, would provide an estimated total operating subsidy of up to $403,000 per year.

Fiscal and Facilities Impacts:

Budgeted: No. Staff will return with a Budget Revision request with the actual grant award amount, if application is successful.

Fiscal Analysis:

Submission of Homekey Grant Applications
July 18, 2023

Page 4 of 4 ends

General Fund
State
Federal 457,500
Fees
Other:

Key_Contract_Risks:

Staffing Impacts:

Legal Positions: FTEs:

No new staffing impacts. The Project will be administered by the Turner Foundation. Administration of operating match funds will be overseen by existing County staff.

Special Instructions:

1. Staff will provide an agreement date to the Clerk of the Board before July 18th. If an agreement date in not set by July 18th, staff will withdraw this item from the Administrative Agenda.

2. Please return one copy of the Minute Order to Kimberlee Albers at [email protected] Electronic signatures and transmittal are acceptable.

Attachments: Reservation of Funding for the State Homekey Project

2. Resolution
1 ORDINANCE NO._____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A LOAN AGREEMENT

TO TURNER FOUNDATION IN THE AMOUNT OF
$457,500 FOR ACQUISITION OF THE REAL PROPERTY
LOCATED AT 2011 OAK AVENUE TO BE USED FOR

LOW-INCOME TRANSITIONAL YOUTH HOUSING, TO

BE SECURED BY A DEED OF TRUST AND APPROVING

A NINETY-YEAR AFFORDABILITY CONTROL

COVENANT IMPOSED ON REAL PROPERTY, AND

AUTHORIZING THE COMMUNITY DEVELOPMENT

DIRECTOR TO EXECUTE SUCH AGREEMENTS AS

NECESSARY
WHEREAS, THE TURNER FOUNDATION ("Owner'') is acquiring real property commonly known as 2011 Oak Avenue in the City of Santa Barbara ("Property); and WHEREAS, by minute action on July 25, 2023, the City Council approved a 30- year loan in the amount of Four Hundred Fifty-Seven Thousand Five Hundred Dollars ($457,500) from the HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) 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 August 1, 2023, the City Council, introduced and subsequently adopted by reading of title only an ordinance approving the City Loan, Deed of Trust and Covenant; and
WHEREAS, the City Loan is secured by the Deed of Trust recorded in the office of the County Recorder on ____ , 2023, as Instrument No. of official records for the purpose of securing Owner's obligations under the City Loan; and 2 WHEREAS, Owner agrees to comply with Covenant recorded in the office of the County Recorder on , 2023, as Instrument No. of official records.

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

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: Downtown Team and Water Resources Divisions, Public Works Department
SUBJECT: Amendments to the Schedule of Penalties, Fees, and Service Charges Related to Downtown Parking, Water, and Wastewater [Resolution]
RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing the City Clerk to Correct Clerical Errors by Inserting Replacement Pages into Resolution 23-078 Adopted on June 13, 2023, Which Became Effective on July 1, 2023, or as Provided Therein, and Amend the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges.

DISCUSSION:

City of Santa Barbara staff wish to correct the published, adopted version of the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges in two areas.

For Downtown Parking fees, staff originally proposed eliminating the validation for disabled customers and replacing it with a discounted prepaid card. The Finance Committee recommended reinstating the validation, so staff recommended updating it from a 2.5-hour subsidized period to a 2- hour subsidized period to mirror the proposed change for the general public from a 75-minute subsidized period to a 60-minute subsidized period. The fee schedule that went to Council for approval included the 2-hour subsidized period for disabled customers. Following deliberations, Council ultimately decided to keep the 75-minute subsidized period for the general public. However, the subsidized period for disabled customers was not reverted to 2.5 hours.

For water and wastewater capacity fees, the Fiscal Year 2024 adopted fee schedule did not incorporate the proposed fees for Fiscal Year 2024, as presented to the Finance Committee, and instead reflected the current Fiscal Year 2023 fee amounts. The capacity charges were proposed to increase as part of an annual update based on the change in the March Engineering News Record Construction Cost Index from the previous year.

Capacity charges are collected when a new connection is made to the City water or Agenda Item No. 4
File Code No. 230.05
Council Agenda Report
Amendment to the Schedule of Penalties, Fees, and Service Charges Related to Downtown Parking, Water, and Wastewater [Resolution]
July 25, 2023

Page 2 ends

wastewater system, discharge is commenced into the wastewater system from a newly permitted dwelling unit, or the size of an existing water meter is increased.

Staff recommends that Council adopt the fees reflected in the updated resolution to:
 Revert the subsidized period for disabled customers to 2.5 hours to maintain it as double the subsidized period offered to the general public; and  Update water and wastewater capacity charges, as originally proposed.

BUDGET/FINANCIAL INFORMATION:

Staff anticipate the proposed action has minimal financial impact on the Downtown Parking, Water, and Wastewater Fund budgets. All proposed fee changes were presented during multiple public hearings during the Fiscal Year 2024 budget process in May and June 2023, and the adoption of the resolution corrects clerical errors to the Schedule of Penalties, Fees and Service Charges.

ENVIRONMENTAL REVIEW:

This resolution is not subject to environmental review pursuant to the State Guidelines for Implementation of the California Environmental Quality Act Sections 15060(c)(2) and 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under Section 15378. This resolution has no potential for resulting in physical change to the environment directly or indirectly in that it corrects clerical errors.

PREPARED BY: Brian J. Bosse, Downtown Team Manager/SC/nv Joshua Haggmark, Water Resources Manager/GC/lm
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
RESOLUTION NO. _____

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA DIRECTING THE CITY CLERK TO

CORRECT CLERICAL ERRORS BY INSERTING
REPLACEMENT PAGES INTO RESOLUTION 23-078
ADOPTED ON JUNE 13, 2023, WHICH BECAME
EFFECTIVE ON JULY 1, 2023, OR AS PROVIDED

THEREIN, AND AMEND THE CITY OF SANTA BARBARA

SCHEDULE OF PENALTIES, FEES, AND SERVICE

CHARGES
WHEREAS, the City Council adopted Resolution No. 23-078 Amending the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges on June 13, 2023 as part of the Operating and Capital Budget for Fiscal Year 2024;
WHEREAS, the final adopted resolution contained clerical errors that Council directs the City Clerk to correct by inserting the replacement pages attached hereto as Attachment A; and
WHEREAS, the fee replacement page for Downtown Parking as corrected is consistent with the direction received from Council during budget deliberations.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT the Council hereby directs the City Clerk to insert the replacement pages attached hereto as Attachment A into Resolution No. 23-078, adopted on June 13, 2023, effective July 1, 2023, or as provided herein.

ATTACHMENT A

DOWNTOWN PARKING FEES
For all Downtown lots and streets except as noted:

1. First 75 minutes Subsidized

2. After first 75 minutes, for each following hour or any portion thereof
$3.00

3. Maximum charge for parking in any Downtown
Parking lot for one 24-hour period
$33.00

4. Failure to surrender entrance ticket upon exiting $20/Occurrence plus applicable service charge and applicable
hourly parking fees

5. Service charge – Request for late payment of parking fees made at lot exit
$5 per request

6. Failure to pay fees will result in the billing of a flat fee of $33 plus service charge
$33.00 plus service charge

7. Monthly Parking in City Downtown Parking Lots Nos.
2, 3, 4, 5, 6 (Granada Garage), 7 (Library Garage), 8,
9 (Lobero Garage), 11, 12, and 13 (Depot Lot)
$165/month

8. Monthly Parking in Lobero Garage (Lot 9) Private
Basement Level
$180/month

9. Monthly Parking in City Downtown Parking Lot No. 10 $145/month

10. Restricted Monthly Parking in City Downtown Parking Lot No. 10
$85/month

11. Restricted Monthly Parking in City Downtown Parking Lot No. 2
$95/month

12. Persons with Disabilities who display Disabled
Parking Placard
First 2.5 hours free
$12 max per day

13. Collection Surcharge for all charges unpaid after the second billing and upon assignment to a collection
agency
45% of charge

14. Refuse enclosure rental $40/month

15. Refuse enclosure cleaning fee $200/incident

16. Multi-day construction staging, per space occupied or reserved 24/7
$30/day/space

17. Returned check charge: See Delinquent Check Payment Fee under Finance Administrative Fees.

18. Permit Replacement fee $20 per occurrence

19. Permit proximity card initiation fee $15

20. Pre-paid card initiation fee $15

21. Parking in City Carrillo Commuter Parking Lot $40/month

ATTACHMENT A

WATER AND WASTEWATER CAPACITY CHARGES AND POLICIES

1. CAPACITY CHARGES
Except as provided herein, the following water and wastewater capacity charges shall be collected prior to the Public Works Director’s approval to: 1) make a new connection to the City water or wastewater system, 2) commence a discharge into the City wastewater system from a newly permitted dwelling unit, or 3) increase the size of an existing water meter. Such capacity charges shall be in addition to fees assessed under other resolutions for the labor, materials, equipment, and other City costs necessary to construct the actual connection to the water or wastewater system.

Water capacity charges for: 1) non-residential uses, 2) newly created single family residential units, or 3) a multi-family residential dwelling unit served by a meter larger than 5/8”, are as follows, per meter*:

Meter Size
Effective
July 1, 2022
Effective
July 1, 2023
Effective
July 1, 2024
Effective
July 1, 2025
Effective
July 1, 2026
5/8” meter: $10,248 $10,555 *** *** ***
¾” meter: $15,373 $15,834 *** *** ***
1” meter: $25,621 $26,390 *** *** ***
1 ½” meter: $51,242 $52,779 *** *** ***
2” meter: $81,988 $84,448 *** *** ***
3” meter: $153,727 $158,339 *** *** ***
4” meter: $256,212 $263,898 *** *** ***
6” meter: $512,423 $527,796 *** *** ***
8” meter: $819,877 $844,473 *** *** ***
10” meter: $1,178,574 $1,213,931 *** *** ***
* For multi-family residential properties in which a City-owned submeter is installed downstream of a City-owned master meter, the capacity charge shall be based on the size of the City submeter instead of the size of the City master meter.
*** See Future Year Charge Calculation subheading, below.

Wastewater capacity charges for: 1) non-residential uses, or 2) newly created single family dwelling units, are as follows**:

Meter Size
Effective
July 1, 2022
Effective
July 1, 2023
Effective
July 1,
2024
Effective
July 1, 2025
Effective
July 1, 2026
Single
Family
$3,744 $3,856 *** *** ***
Non-Residential
5/8” meter: $3,744 $3,856 *** *** ***

ATTACHMENT A
¾” meter: $5,616 $5,784 *** *** ***
1” meter: $9,361 $9,642 *** *** ***
1 ½” meter: $18,721 $19,283 *** *** ***
2” meter: $29,954 $30,853 *** *** ***
3” meter: $56,164 $57,849 *** *** ***
4” meter: $93,607 $96,415 *** *** ***
6” meter: $187,214 $192,830 *** *** ***
8” meter: $299,542 $308,528 *** *** ***
10” meter: $430,592 $443,510 *** *** ***
** Should a multi-family or single family residential property require a meter size larger than 5/8” to primarily serve indoor domestic capacity needs, wastewater capacity charges shall not be capped at the 5/8” meter charge and shall be determined by the Non-Residential meter sizes as reflected in the chart above. The property may be subject to a site inspection by City staff to verify water use. *** See Future Year Charge Calculation subheading, below.

Capacity Charges for Multi-Family and Accessory Dwelling Unit Projects Except as provided above, the water and wastewater capacity charges for newly permitted multi-family dwelling units and accessory dwelling units served by a separate and dedicated City water meter shall be calculated by multiplying the total number of newly proposed water supply Fixture Units times the applicable Fixture Unit cost as established in the tables below; provided, however, the wastewater capacity charge per dwelling unit for multi-family and accessory dwelling units shall not exceed the wastewater capacity charge for a 5/8” meter.

Fixture Unit Costs ($/Fixture Unit)
System
Effective
July 1,
2022
Effective
July 1, 2023
Effective
July 1, 2024
Effective
July 1, 2025
Effective
July 1, 2026
Water $341.60 $351.85 *** *** ***
Wastewater $124.81 $128.59 *** *** ***
*** See Future Year Charge Calculation subheading, below Future Year Charge Calculation
Charges shall be escalated annually based on the change in the March Engineering News Record (ENR) Construction Cost Index (CCI) 20-City Average from the previous year. For example, if the March 2024 ENR CCI is 3% higher than the March 2023 ENR CCI, then capacity charges will increase by 3% in July 2024 (start of FY25).

2. REGULATIONS REGARDING ASSESSMENT OF CAPACITY CHARGES The following regulations shall apply to the assessment of water and wastewater

ATTACHMENT A
capacity charges:

A. The term “multi-family residential dwelling unit” as used herein shall mean any attached dwelling unit, including attached apartments, condominiums, and secondary dwelling units.

B. Water and wastewater capacity charges shall not apply to:

1. Water system connections for public fire hydrants, private fire hydrants, and private fire lines; and

2. Common area meters to serve irrigation on multi-family residential properties.

C. A wastewater capacity charge shall not apply to a water meter that is classified as “Irrigation” in the City billing system.

D. Water and wastewater capacity charges shall not apply to a connection to the City’s recycled water distribution system to the extent that the connection offsets existing potable water capacity.

E. In the case of an application for a water connection to serve a parcel where connections already exist, credit shall be given for existing connections such that the water capacity charges shall be based on the net increase in metered capacity. In the case of an application for a Wastewater connection to serve a parcel where connections already exist, capacity charges shall be based on the net increase in meter capacity for non-residential meters, or in the case of residential meters, the net increase in the number of dwelling units. The credit shall only be valid when the existing connections are abandoned within six months of the installation of new services.

F. There shall be no capacity charge assessed for the installation of a meter to serve a legally existing residential dwelling unit that is already being legally served by another City water meter when such installation is done for the purpose of providing separate metering to such dwelling unit.

G. There shall be no capacity charge assessed for the installation of a 5/8” irrigation meter to serve existing irrigated landscaping that is already being legally served by another City water meter when such installation is done for the purpose of providing separate metering of indoor uses and irrigation. Water use history for the property must show patterns of irrigation watering for at least two years. The property maybe subject to a site inspection by City staff to verify the landscaping is existing and irrigated. Should a customer request an irrigation meter size larger than 5/8”, the capacity charge will be calculated at the applicable fee based on the meter size as provided in Section 1, less the applicable fee for a 5/8” meter.

All other applicable fees, charges, and costs shall apply.

ATTACHMENT A
H. A reduction in meter size may be approved by the Public Works Director in accordance with applicable resolutions; however, there shall be no refund of capacity charges upon such reduction.

I. When a customer voluntarily downsizes a meter, the original meter capacity will be reserved for the service connection for 12 months. If, before 12 months has elapsed from the time of the smaller meter being installed, the customer requests the original meter size to be re-installed at the same service connection, no capacity charge shall apply. If more than 12 months has elapsed, the customer will be charged the difference in capacity charge between the meter size currently installed and the size of the meter to be installed.

J. In cases where an applicant asserts that the water or wastewater capacity charge imposed under this Resolution exceeds the reasonable cost of providing the service for which the charge is imposed, or does not reasonably reflect the proportionate benefit of existing public facilities using the methods contained herein, an applicant may appeal the determination of the capacity charge to the Public Works Director, and may subsequently appeal the Public Works Director’s Decision to the City Council, for determination of a different capacity charge.

Appeals under this section, shall be made as follows:

1. Prior to installation of water meters, the applicant shall submit a written notice of appeal to the Public Works Director. The notice of appeal shall set forth the grounds upon which the appeal is based, a proposed alternate capacity charge calculation, and all relevant issues, facts, information, and analysis necessary to substantiate the appeal.

2. Within 21 days of receiving the written notice of appeal, the Public Works Director shall provide a written decision on the appeal to the applicant.

3. The Public Works Director shall have the authority to continue the determination on the appeal beyond 21 days to request additional information from the applicant, and consider new issues and facts raised by the applicant.

4. The applicant may appeal the decision of the Public Works Director to the City Council by filing a written notice of appeal with the City Clerk within 10 days of the date of the Public Works Director’s Decision. The notice of appeal shall set forth in detail the grounds upon which the appeal is based and provide all supplemental documents upon which the applicant intends to reply. The City Clerk shall require payment of a fee for such appeal as is provided by resolution of the City Council for the matter.

Prior to setting the appeal for hearing before the City Council, the Water Commission, at their soonest available meeting after the notice of

ATTACHMENT A
appeal is filed with the City Clerk, shall consider the Public Works Director’s decision on the appeal and shall make a recommendation to City Council on the appeal. No new information, documents or evidence shall be filed or considered by the Water Commission.

5. Within 21 days of receiving the recommendation from the Water Commission, the City Clerk shall set a date for hearing on the appeal before the City Council.

6. At the time and place of the hearing, the City Council shall hear and receive any relevant information and document regarding the appeal.

The City Council may continue the hearing from time to time as may be required, or may grant or deny the appeal, in whole or in part.

7. The decision of the City Council shall be final on the day of the decision.

K. The Public Works Director is authorized to establish Administrative Guidelines to determine eligibility criteria to pay capacity charges previously established in lieu of capacity charges established herein for development projects that have achieved specific milestones in the development review process.

3. REGULATIONS REGARDING RESERVED CAPACITY CHARGES FOR

INACTIVE ACCOUNTS
A. As system capacity continues to be reserved for inactive accounts even when connections are not in use, accounts that have been inactive for more than 6 months shall be subject to reserved capacity charges before service can be reinstated. Charges shall be determined by the following formulas:

1. WATER
The current monthly service charge multiplied by the number of months that have passed since the expiration of the 6-month grace period.

2. WASTEWATER
For Residential Accounts: The current monthly basic charge per dwelling unit, multiplied by the number of dwelling units on the account, multiplied by the number of months that have passed since the expiration of the 6- month grace period.

For Commercial Class 1-4 Accounts: The minimum monthly service charge based on meter size, multiplied by the number of months that have passed since the expiration of the 6-month grace period.

3. The water monthly service charge and wastewater minimum monthly service charge shall be based on the meter size at the time of account termination.

B. If the above calculation exceeds the current capacity charge for the meter size in question, the charge is capped at the current capacity charge amount.

ATTACHMENT A
Accounts that are inactive due to catastrophic circumstances, such as fire or other natural disasters, may apply for a waiver of reserved capacity charges that have accrued within 5 years of the catastrophic circumstance, subject to approval by the Public Works Director. The Public Works Director may adopt an administrative policy for implementation of this section.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: June 30, 2023, Investment Report and June 30, 2023, Fiscal Agent Report RECOMMENDATION: That Council:

A. Accept the June 30, 2023, Investment Report; and
B. Accept the June 30, 2023, Fiscal Agent Report.

DISCUSSION:

On a quarterly basis, staff
submits a comprehensive
report on the City’s portfolio
and related activity pursuant
to the City’s Annual
Statement of Investment
Policy. The current report
covers investment activity
for the three-month period
of April 2023 through June
2023.

By the end of the quarter,
Treasury yields increased
across the yield curve, as shown in the table above, with changes ranging between +18 and +81 basis points (“bps”).

The City generally invests in securities of one to five years in duration. Within this duration, interest rates ranged from 4.13 percent to 5.40 percent for Treasury securities at the end of the quarter. On May 3, the Federal Reserve (“Fed”) raised the federal funds rate, which in turn influences Treasury yields, bringing it to a range of 5.00 percent to 5.25 percent.

Additionally, the Fed continued the Quantitative Tightening, a process whereby it reduces the liquidity in the bond markets, thus withdrawing the ample monetary policy accommodation Agenda Item No. 5
File Code No. 260.02
Council Agenda Report
June 30, 2023, Investment Report and June 30, 2023, Fiscal Agent Report July 25, 2023

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introduced during the pandemic. As a reaction to the Fed signaling its resolve to counter the current high inflation, interest rates across the yield curve have moved higher. In the current interest rate environment, the City interest earnings are forecast to gradually inch higher.

Investment Activity
As shown in the Investment Activity table above, during the quarter the City invested $20.0 Million in AAA-rated federal agency securities, $2.0 Million in AAA-rated supranational obligations, and $4.0 Million in AAA-rated US treasury notes. The overall redemptions amounted to $9.0 Million.

Summary of Cash and Investments
The book rate of return, or portfolio yield, measures the rate of return of actual earnings generated from the portfolio. As shown in the table to the right, during the quarter the City’s book rate of return increased by 29 basis points, from 2.007 percent at March 31, 2023 to 2.296 percent at June 30, 2023.

In the second quarter of the current fiscal year, the City’s realized interest earnings amounted to $1.76 Million. The portfolio’s average days to maturity increased by 33 days from 559 to 592 days, reflecting reinvestment of maturities and calls during the quarter in the one-to-five year range in accordance with the City’s Annual Statement of Investment Policy. The Annual Statement of Investment Policy requires that the average days to maturity on the portfolio not exceed 2.5 years, excluding any investments with a final maturity longer than five years that Council Agenda Report
June 30, 2023, Investment Report and June 30, 2023, Fiscal Agent Report July 25, 2023

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were separately authorized by Council. The average LAIF rate at which the City earned interest for funds invested was at 3.36 percent for the quarter ended June 30, 2023, an increase of 62 basis point from the previous quarter. The City’s LAIF holdings at the end of the quarter were $75.0 Million.

Credit Quality on Corporate Notes
There were no changes to the credit profiles of the corporate issuers of the medium-term notes held in the portfolio (i.e., Apple Inc., Microsoft Inc., Toyota Motor Co.). For the quarter ending June 30, the ratings of all corporate notes remained within the City’s Investment Policy guidelines of “A” or better.

Portfolio Market Gains/Losses
As shown in the Investment Yields chart below, at the end of the quarter, the City’s portfolio yield settled below the LAIF rate, the 90-day Treasury Bill, and the 2-year Treasury Note.

These benchmarks serve as indicators of the City’s performance, although, at times, they can show more pronounced swings, either higher or lower than the City’s portfolio, especially in volatile markets such as the current one. Trends over time that substantially deviate from these benchmarks would warrant further analysis and review.

Council Agenda Report
June 30, 2023, Investment Report and June 30, 2023, Fiscal Agent Report July 25, 2023

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On a quarterly basis, staff reports the five securities with the largest percentage of unrealized losses.

On a quarterly basis, staff also reports the five securities with the largest market declines of greater than one percent compared to the prior month’s market value.

The Fed’s removal of monetary policy accommodation to tame the current high inflation has prompted a sharp downside repricing across bond markets. However, because securities in the City’s portfolio are held to maturity, no market losses are expected to be realized.

Additional Reporting Requirements
The following confirmations are made pursuant to California Code Sections 53600, et seq.:
(1) the City’s portfolio as of June 30, 2023, is in compliance with the City’s Statement of Investment Policy; and (2) there are sufficient funds available to meet the City’s expenditure requirements for the next six months.

Fiscal Agent Investments
In addition to reporting requirements for public agency portfolios, a description of any of the agency’s investments under the management of contracted parties is also required on a quarterly basis. Attachment #2 includes bond funds as of June 30, 2023.

ATTACHMENTS: 1. June 30, 2023, Investment Report

2. June 30, 2023, Fiscal Agent Report
PREPARED BY: Salvatore Parrilla, Treasury Analyst
SUBMITTED BY: Lyndsay Maas, Assistant Finance Director
APPROVED BY: City Administrator's Office

INVESTMENT ACTIVITY INVESTMENT INCOME

PURCHASES OR DEPOSITS POOLED INVESTMENTS
6/26 IBRD 2,000,000 $ Interest Earned on Investments 534,213 $ 6/26 FHLB 2,000,000 Amortization 35,525
6/28 USTN 2,000,0006/28 USTN 2,000,0006/28 FHLB 2,000,0006/30 FFCB 2,000,0006/30 FHLB 2,000,000 Total 14,000,000 $ Total 569,738 $

SALES, MATURITIES, CALLS OR WITHDRAWALS
6/19 FHLMC (3,000,000) $
6/30 USTN (2,000,000)
Total (5,000,000) $
ACTIVITY TOTAL 9,000,000 $ INCOME TOTAL 569,738 $

CITY OF SANTA BARBARA
Activity and Interest Report
June 30, 2023
ATTACHMENT 1
1 ENDING BALANCE AS OF May 31, 2023
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityUS Bank Checking Account 31,855,307 $ 0.750% 8.89% 1 (1) State of California LAIF 75,000,000 2.993% 20.92% 1 (2)Treasury Securities - Coupon 48,752,049 1.167% 13.60% 694Treasury Discount 5,899,439 4.553% 1.65% 140Federal Agency Issues - Coupon 172,967,593 2.173% 48.25% 794Corporate/Medium Term Notes 10,996,253 1.938% 3.07% 488Supranationals Obligations 12,986,469 1.317% 3.62% 944

2. 358,457,109 082% 100.00% 529
Totals and Averages $ 2. 358,457,109 082% 100.00% 529
Total Cash and Investments 358,457,109 $
NET CASH AND INVESTMENT ACTIVITY FOR June 2023 (12,517,776) $ ENDING BALANCE AS OF June 30, 2023 Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityUS Bank Checking Account 10,315,906 $ 0.750% 2.98% 1 (1) State of California LAIF 75,000,000 3.167% 21.68% 1 (2)Treasury Securities - Coupon 50,756,637 1.383% 14.67% 767Treasury Discount 5,920,868 4.553% 1.71% 110Federal Agency Issues - Coupon 177,964,258 2.273% 51.44% 812Corporate/Medium Term Notes 10,997,181 1.938% 3.18% 458Supranationals Obligations 14,984,482 1.745% 4.33% 1,035

2. 345,939,333 296% 100.00% 592
Totals and Averages $ 2. 345,939,333 296% 100.00% 592
Total Cash and Investments 345,939,333 $
Note: (1) Earnings Credit Rate (ECR) is provided at the rate of 0.750% by US Bank to help offset banking fees. (2) The average life of the LAIF portfolio as of June 30, 2023 is 260 days.

CITY OF SANTA BARBARA
Summary of Cash and Investments
June 30, 2023
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 - - - - 3.167 3.167 75,000,000.00 75,000,000.00 75,000,000.00 0.00 Subtotal, LAIF 75,000,000.00 75,000,000.00 75,000,000.00 0.00TREASURY SECURITIES - DISCOUNTU S TREASURY BILL 10/13/22 10/05/23 Aaa AA+ 4.047 4.289 3,000,000.00 2,967,626.22 2,959,470.00 (8,156.22)U S TREASURY BILL 11/04/22 11/02/23 Aaa AA+ 4.525 4.817 3,000,000.00 2,953,241.67 2,947,110.00 (6,131.67) Subtotal, Treasury Securities 6,000,000.00 5,920,867.89 5,906,580.00 (14,287.89)TREASURY SECURITIES - COUPONU S TREASURY NOTE 05/03/19 04/30/24 Aaa AA+ 2.250 2.342 2,000,000.00 1,998,562.83 1,948,360.00 (50,202.83)U S TREASURY NOTE 01/12/21 09/15/23 Aaa AA+ 0.125 0.185 3,000,000.00 2,999,625.86 2,969,400.00 (30,225.86)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,991,957.42 2,729,880.00 (262,077.42)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,988,529.00 1,830,240.00 (158,289.00)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,984,030.02 1,802,740.00 (181,290.02)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,987,172.05 1,826,560.00 (160,612.05)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,989,578.70 1,840,160.00 (149,418.70)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,992,701.48 1,796,480.00 (196,221.48)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,983,437.63 1,781,800.00 (201,637.63)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,984,328.25 1,783,760.00 (200,568.25)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,991,124.43 1,789,380.00 (201,744.43)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,984,439.15 2,884,110.00 (100,329.15)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,942,541.83 2,701,410.00 (241,131.83)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.210 3,000,000.00 2,996,144.38 2,821,170.00 (174,974.38)U S TREASURY NOTE 01/31/22 01/31/24 Aaa AA+ 0.875 1.145 3,000,000.00 2,995,318.20 2,922,540.00 (72,778.20)U S TREASURY NOTE 02/28/22 02/29/24 Aaa AA+ 1.500 1.548 2,000,000.00 1,999,376.71 1,948,600.00 (50,776.71)U S TREASURY NOTE 02/28/22 11/30/26 Aaa AA+ 1.625 1.863 2,000,000.00 1,984,498.85 1,826,020.00 (158,478.85)U S TREASURY NOTE 03/15/22 03/15/25 Aaa AA+ 1.750 1.827 3,000,000.00 2,996,183.71 2,837,820.00 (158,363.71)U S TREASURY NOTE 03/17/22 05/31/24 Aaa AA+ 2.000 2.006 2,000,000.00 1,999,882.79 1,938,760.00 (61,122.79)U S TREASURY NOTE 03/17/22 12/31/26 Aaa AA+ 1.750 2.170 2,000,000.00 1,972,195.27 1,831,800.00 (140,395.27)U S TREASURY NOTE 06/28/23 10/31/27 Aaa AA+ 4.125 4.124 2,000,000.00 2,000,000.00 1,989,540.00 (10,460.00)U S TREASURY NOTE 06/28/23 02/29/28 Aaa AA+ 4.000 4.058 2,000,000.00 1,995,008.79 1,985,240.00 (9,768.79) Subtotal, Treasury Securities 51,000,000.00 50,756,637.35 47,785,770.00 (2,970,867.35)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,998,928.76 1,950,020.00 (48,908.76)FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.480 3,000,000.00 3,000,000.00 2,722,050.00 (277,950.00) 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 2,913,780.00 (86,220.00) Callable 09/09/23, QFED AGRICULTURAL MTG CORP 05/15/23 05/15/26 - - 3.625 3.625 2,000,000.00 2,000,000.00 1,942,140.00 (57,860.00) FED AGRICULTURAL MTG CORP 05/19/23 05/19/27 - - 4.100 4.100 2,000,000.00 2,000,000.00 1,946,100.00 (53,900.00) Callable 05/19/25, 1x FEDERAL FARM CREDIT BANK 01/31/19 10/23/23 Aaa AA+ 2.650 2.670 2,000,000.00 1,999,886.82 1,983,180.00 (16,706.82) FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,790,340.00 (209,660.00) 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 1,846,520.00 (153,480.00) 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 1,779,500.00 (220,500.00) Callable, P

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
June 30, 2023
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
June 30, 2023
FEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,991,014.41 2,855,220.00 (135,794.41) Callable, P FEDERAL FARM CREDIT BANK 12/23/21 06/23/25 Aaa AA+ 1.170 1.170 3,000,000.00 3,000,000.00 2,769,930.00 (230,070.00) 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 2,723,730.00 (276,270.00) 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 2,728,530.00 (271,470.00) Callable, PFEDERAL FARM CREDIT BANK 02/16/22 02/16/27 Aaa AA+ 2.180 2.180 3,000,000.00 3,000,000.00 2,761,080.00 (238,920.00) Callable 02/16/24, PFEDERAL FARM CREDIT BANK 08/30/22 02/25/26 Aaa AA+ 3.320 3.470 3,000,000.00 2,988,849.94 2,894,580.00 (94,269.94) FEDERAL FARM CREDIT BANK 05/26/22 05/26/26 Aaa AA+ 3.375 3.375 3,000,000.00 3,000,000.00 2,858,730.00 (141,270.00) Callable, P FEDERAL FARM CREDIT BANK 09/20/22 10/17/23 Aaa AA+ 4.125 4.089 3,000,000.00 3,000,000.00 2,987,610.00 (12,390.00) FEDERAL FARM CREDIT BANK 10/19/22 10/19/26 Aaa AA+ 4.250 4.264 3,000,000.00 2,998,762.50 2,953,950.00 (44,812.50)FEDERAL FARM CREDIT BANK 11/29/22 11/18/24 Aaa AA+ 4.500 4.650 3,000,000.00 2,994,111.71 2,970,690.00 (23,421.71)FEDERAL FARM CREDIT BANK 03/29/23 03/29/27 Aaa AA+ 4.000 4.000 2,000,000.00 2,000,000.00 1,966,260.00 (33,740.00)FEDERAL FARM CREDIT BANK 04/05/23 04/05/27 Aaa AA+ 5.270 5.270 2,000,000.00 2,000,000.00 1,979,100.00 (20,900.00) Callable 04/05/24, P FEDERAL FARM CREDIT BANK 05/09/23 05/09/28 Aaa AA+ 5.020 5.020 2,000,000.00 2,000,000.00 1,962,300.00 (37,700.00) Callable 05/09/24, PFEDERAL FARM CREDIT BANK 06/30/23 06/30/28 Aaa AA+ 5.000 5.000 2,000,000.00 2,000,000.00 1,995,940.00 (4,060.00) Callable 06/30/25, PFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.580 0.580 3,000,000.00 3,000,000.00 2,695,890.00 (304,110.00) Callable 07/28/23, QFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,703,330.00 (296,670.00) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,706,900.00 (293,100.00)FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,713,050.00 (286,950.00) Callable 02/25/24, A FEDERAL HOME LOAN BANK 03/16/21 03/16/26 Aaa AA+ 1.000 0.800 2,000,000.00 2,000,000.00 1,809,340.00 (190,660.00) FEDERAL HOME LOAN BANK 05/20/21 05/20/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,801,460.00 (198,540.00) Callable 08/20/23, Q FEDERAL HOME LOAN BANK 05/26/21 12/26/25 Aaa AA+ 0.900 0.900 3,000,000.00 3,000,000.00 2,727,540.00 (272,460.00) Callable 08/26/23, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,869,260.00 (130,740.00) Callable 08/26/23, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,839,820.00 (160,180.00) Callable 09/10/23, QFEDERAL HOME LOAN BANK 06/10/21 06/10/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,796,320.00 (203,680.00) Callable 09/10/23, QFEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,849,260.00 (150,740.00) Callable 09/28/23, QFEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,874,320.00 (125,680.00) Callable 09/23/23, QFEDERAL HOME LOAN BANK 09/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,849,260.00 (150,740.00) Callable 09/28/23, QFEDERAL HOME LOAN BANK 09/28/21 09/28/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,778,560.00 (221,440.00) Callable 09/28/23, QFEDERAL HOME LOAN BANK 10/28/21 10/28/26 Aaa AA+ 1.250 1.125 2,000,000.00 2,000,000.00 1,794,040.00 (205,960.00) FEDERAL HOME LOAN BANK 12/28/21 06/28/24 Aaa AA+ 0.920 0.920 3,000,000.00 3,000,000.00 2,868,690.00 (131,310.00) Callable 09/28/23, Q FEDERAL HOME LOAN BANK 12/28/21 02/28/25 Aaa AA+ 1.125 1.125 3,000,000.00 3,000,000.00 2,803,680.00 (196,320.00) Callable 09/28/23, QFEDERAL HOME LOAN BANK 12/29/21 12/29/23 Aaa AA+ 0.700 0.700 3,000,000.00 3,000,000.00 2,929,050.00 (70,950.00) 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 2,812,620.00 (187,380.00) 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 2,731,080.00 (268,920.00) Callable 01/26/24, 1x - S/UFEDERAL HOME LOAN BANK 02/28/22 05/28/24 Aaa AA+ 1.450 1.450 3,000,000.00 3,000,000.00 2,890,800.00 (109,200.00) FEDERAL HOME LOAN BANK 03/29/22 03/29/27 Aaa AA+ 2.375 2.375 3,000,000.00 3,000,000.00 2,777,670.00 (222,330.00) Callable 09/29/23, Q FEDERAL HOME LOAN BANK 04/21/22 04/21/26 Aaa AAA 3.000 3.000 2,000,000.00 2,000,000.00 1,901,320.00 (98,680.00) Callable 04/21/24, AFEDERAL HOME LOAN BANK 04/25/22 04/25/25 Aaa AA+ 2.750 2.750 2,000,000.00 2,000,000.00 1,920,040.00 (79,960.00) FEDERAL HOME LOAN BANK 09/20/22 07/20/23 Aaa AA+ 3.500 3.590 3,000,000.00 2,999,867.00 2,997,360.00 (2,507.00)FEDERAL HOME LOAN BANK 11/29/22 11/28/23 Aaa AA+ 4.875 4.875 3,000,000.00 3,000,000.00 2,989,950.00 (10,050.00)FEDERAL HOME LOAN BANK 03/23/23 03/13/26 Aaa AA+ 4.125 4.137 2,000,000.00 1,999,218.77 1,965,800.00 (33,418.77)FEDERAL HOME LOAN BANK 05/08/23 02/08/24 Aaa AA+ 5.000 5.010 2,000,000.00 2,000,000.00 1,991,260.00 (8,740.00) Callable 11/08/23, 1x FEDERAL HOME LOAN BANK 06/26/23 06/09/28 Aaa AA+ 4.000 4.071 2,000,000.00 1,993,617.95 1,987,560.00 (6,057.95) FEDERAL HOME LOAN BANK 06/28/23 06/28/27 Aaa AA+ 5.300 5.300 2,000,000.00 2,000,000.00 1,996,020.00 (3,980.00) Callable 06/28/24, 1x FEDERAL HOME LOAN BANK 06/30/23 06/26/26 Aaa AA+ 5.300 5.300 2,000,000.00 2,000,000.00 2,000,280.00 280.00 Callable 12/26/23, 1xFEDERAL HOME LOAN MTG CORP 11/25/20 11/25/25 Aaa AA+ 0.625 0.625 3,000,000.00 3,000,000.00 2,721,090.00 (278,910.00) Callable on 11/25/23, 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 2,938,290.00 (61,710.00) Callable 08/24/23, 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 2,797,890.00 (202,110.00) Callable 09/09/23, QFEDERAL HOME LOAN MTG CORP 06/22/22 03/22/24 Aaa AA+ 2.750 2.738 4,000,000.00 4,000,000.00 3,915,880.00 (84,120.00)FEDERAL HOME LOAN MTG CORP 06/23/22 06/23/27 Aaa AA+ 3.500 3.500 3,000,000.00 3,000,000.00 2,864,010.00 (135,990.00) Callable 09/23/23, Q 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
June 30, 2023
FEDERAL HOME LOAN MTG CORP 06/28/22 06/28/24 Aaa AA+ 3.050 3.050 4,000,000.00 4,000,000.00 3,893,800.00 (106,200.00) Callable 09/28/23, Q FEDERAL HOME LOAN MTG CORP 09/29/22 09/29/27 Aaa AA+ 4.750 4.750 3,000,000.00 3,000,000.00 2,924,370.00 (75,630.00) Callable 09/29/23, QFEDERAL HOME LOAN MTG CORP 09/19/22 09/19/24 Aaa AA+ 3.700 3.700 3,000,000.00 3,000,000.00 2,935,680.00 (64,320.00) Callable 09/19/23, 1xFEDERAL HOME LOAN MTG CORP 11/22/22 11/22/27 Aaa AA+ 5.125 5.125 3,000,000.00 3,000,000.00 2,975,040.00 (24,960.00) Callable 11/22/24, 1xFEDERAL HOME LOAN MTG CORP 11/30/22 08/28/24 Aaa AA+ 5.000 5.005 3,000,000.00 3,000,000.00 2,979,960.00 (20,040.00) Callable 08/28/23, 1xFEDERAL HOME LOAN MTG CORP 04/12/23 07/12/27 Aaa AA+ 4.750 4.703 2,000,000.00 2,000,000.00 1,965,360.00 (34,640.00) Callable 07/12/24, AFEDERAL NATL MORTGAGE ASSN 08/17/20 08/17/23 Aaa AA+ 0.310 0.310 3,000,000.00 3,000,000.00 2,980,890.00 (19,110.00)FEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,647,760.00 (352,240.00) Callable 08/26/23, QFEDERAL NATL MORTGAGE ASSN 11/17/20 05/17/24 Aaa AA+ 0.375 0.375 3,000,000.00 3,000,000.00 2,867,220.00 (132,780.00) Callable 08/17/23, Q Subtotal, Federal Agencies 178,000,000.00 177,964,257.86 169,060,050.00 (8,904,207.86) 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 2,722,920.00 (277,080.00)INTERNATIONAL BANK FOR RECONST 09/09/22 09/09/27 Aaa AAA 4.000 4.000 3,000,000.00 3,000,000.00 2,896,620.00 (103,380.00) Callable 09/09/24, A INTERNATIONAL BANK FOR RECONST 06/26/23 06/26/28 Aaa AAA 4.500 4.528 2,000,000.00 1,997,506.94 1,987,900.00 (9,606.94) Callable 06/26/26, 1xINTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,833.64 2,822,760.00 (177,073.64) INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,997,054.00 1,794,800.00 (202,254.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,990,087.66 1,828,840.00 (161,247.66) Subtotal, Supranationals 15,000,000.00 14,984,482.24 14,053,840.00 (930,642.24)CORPORATE/MEDIUM TERM NOTESAPPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,997,663.67 1,923,700.00 (73,963.67)APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,607.62 2,704,410.00 (295,197.62)MICROSOFT CORP 05/23/19 08/08/23 Aaa AAA 2.000 2.535 2,000,000.00 1,998,962.05 1,994,100.00 (4,862.05)TOYOTA MOTOR CREDIT 07/27/18 07/20/23 A1 A 3.419 3.392 2,000,000.00 2,000,025.86 1,998,420.00 (1,605.86)TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,000,922.24 1,892,420.00 (108,502.24) Subtotal, Corporate Securities 11,000,000.00 10,997,181.44 10,513,050.00 (484,131.44)CHECKING ACCOUNTUS BANK CHKNG ACCNT - - - - 0.750 0.750 10,315,906.25 10,315,906.25 10,315,906.25 0.00 Subtotal, Checking Account 10,315,906.25 10,315,906.25 10,315,906.25 0.00TOTALS 346,315,906.25 345,939,333.03 332,635,196.25 (13,304,136.78) Market values have been obtained from the City's safekeeping agent, US Bank. 5 2.296

4.8705.430

3.167

0.00.51.01.52.02.53.03.54.04.55.05.56.0 Jun'22 Jul'22 Aug'22 Sep'22 Oct'22 Nov'22 Dec'22 Jan'23 Feb'23 Mar'23 Apr'23 May'23 Jun'23 Yield ‐ %
Month
INVESTMENT YIELDS
City Portfolio 2‐yr Treasury 3‐mo Treasury LAIF

CASH & CASH

EQUIVALENTS
Guaranteed
Investment Contracts
(GIC) US GOVT & AGENCIES TOTALS
Book & Market Book & Market Book Market Book Market

BOND FUNDS

RESERVE FUNDS
2011 Water - 1,699,731.16 - - - 1, 1, 699,731.16 699,731.16 Safe Drinking Water State Loan
2013 Water - 664,297.78 - 428,069.44 - 1, 1, 092,367.22 092,367.22 Refunding COPS
2016 Sewer - 0.70 - - - 0.70 0.70
Refunding Bonds
2019 Airport - 2.46 - - - 2.46 2.46
Refunding Bonds
2014 Waterfront - 10,100.37 - 581,455.74 - 591,556.11 591,556.11 Refunding BondsSubtotal, Reserve Funds 1, 2,374,132.47 - 009,525.18 - 3, 3, 383,657.65 383,657.65 TOTAL FISCAL AGENTINVESTMENTS 2,374,132.47 1, - 009,525.18 - 3, 3, 383,657.65 383,657.65 Notes:
(1) Cash & cash equivalents include money market funds.(2) Market values have been obtained from the following trustees: US Bank ATTACHMENT 2

CITY OF SANTA BARBARA
Fiscal Agent Investments
June 30, 2023

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Contract with Santa Barbara International Film Festival [Agreement] RECOMMENDATION:

That Council authorize the City Administrator to execute an annual community promotion contract with Santa Barbara International Film Festival in the amount of $76,665 to support film festival programming and year-round administrative expenses.

DISCUSSION:

The Mayor and Council’s Office Arts and Community Promotion budget includes funding for the Santa Barbara International Film Festival for Fiscal Year 2024. The funding will be used for the promotion of the festival and year-round administrative expenses. The term of the contract would extend through June 30, 2024.

The festival has been recognized as one of the premiere film festivals, drawing thousands of visitors from outside Santa Barbara. The economic impact from arts and cultural events in Santa Barbara is significant. Cultural arts programs and events provide a major boost to the local economy through ticket sales, sponsorships, services, supplies, and employee salaries.

BUDGET/FINANCIAL INFORMATION:

The Fiscal Year 2023 Adopted Budget includes $76,665 for this agreement. No additional expenditure appropriations are required.

The contract is available for review in the City Clerk’s Office at City Hall at 735 Anacapa Street or by contacting Nicole Grisanti at [email protected].

Agenda Item No. 6
File Code No. 170.01
Council Agenda Report
Community Promotion Contract with Santa Barbara International Film Festival [Agreement] July 25, 2023

Page 2 ends

PREPARED BY: Nicole Grisanti, Supervisor, City Administrator’s Office SUBMITTED BY: Rebecca J. Bjork, City Administrator
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Contract with Visit Santa Barbara for Tourism Marketing Services [Agreement]
RECOMMENDATION:

That Council authorize the City Administrator to execute an annual community promotion contract with Visit Santa Barbara to provide marketing services that promote Santa Barbara as a tourism destination, in an amount of $950,000.

DISCUSSION:

The City’s annual budget includes $950,000 for Visit Santa Barbara to promote Santa Barbara as a tourist destination. This contract will help support year-round administrative expenses for Visit Santa Barbara, including salaries and benefits, advertising, consumer and trade information services, public relations, and sales. The term of the contract would extend through June 30, 2024.

Visit Santa Barbara work efforts will be focused on recovery for the travel and hospitality industry and returning to traditional levels of visitation, economic impact, employment and tax generation.

BUDGET/FINANCIAL INFORMATION:

The City’s Fiscal Year 2023 budget includes $950,000 for this agreement. No additional expenditure appropriations are required.

The contract is available for review in the City Clerk’s Office at City Hall at 735 Anacapa Street or by contacting Nicole Grisanti at [email protected] PREPARED BY: Nicole Grisanti, Supervisor, City Administrator’s Office SUBMITTED BY: Rebecca J. Bjork, City Administrator
APPROVED BY: City Administrator's Office
Agenda Item No. 7
File Code No. 170.01

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: Building and Safety Division, Community Development Department SUBJECT: Amendments to Professional Services Agreements for Permit, Plan Check, and Inspection Services [Agreement]
RECOMMENDATION: That Council:

A. Authorize the Community Development Director to execute the fifth amendment to increase the amount of Santa Barbara City Agreement No. 26,978 with Bureau Veritas North America, Inc., by $115,000, for a total contract amount of $1,060,000, to provide permit, plan check, and inspection services; and B. Authorize the Community Development Director to execute the fifth amendment to increase the amount of Santa Barbara City Agreement No. 26,979 with Interwest Consulting Group by $100,000, for a total contract amount of $585,000, to provide permit, plan check, and inspection services.

DISCUSSION:

Thorough and timely building permit plan reviews and inspection services help the community establish and maintain a safe, accessible, and healthy built environment.

During periods of increased demand and staffing shortages, contract services help ensure acceptable turnaround times for permit, plan check, and inspection services; prevent and reduce building permit plan check backlogs; and expedite plan check processes according to City priorities.

The Building and Safety Division continues to experience plan check staff vacancies.

Sustained vacancies have resulted in increased demand for third-party plan review services and accelerated the rate at which contract services are used.

The Building and Safety Division has an established working relationship with Bureau Veritas and Interwest, both of which have provided consistent plan check review and adhered to the required turnaround schedule. Authorizing the recommended contract amendments will allow the Building and Safety Division to continue to provide timely, professional service.

Agenda Item No. 8
File Code No. 640.01
Council Agenda Report
Amendments to Professional Services Agreements for Permit, Plan Check, and Inspection Services [Agreement]
July 25, 2023

Page 2 ends

BUDGET/FINANCIAL IMPACT:

There are existing expenditure appropriations in the adopted FY2024 Community Development General Fund budget to fund the recommended contract amendments.

Funding sources for the contract amendments with Bureau Veritas and Interwest are listed in the table below:

Vendor Funding Source Amount
Bureau Veritas Existing General Fund Appropriations $115,000 Interwest Existing General Fund Appropriations $100,000 Total: $215,000
A copy of the agreements and amendments may be requested from the Community Development Department for public review. Please contact [email protected] to request a copy.

PREPARED BY: Marck Aguilar, Building and Safety Business Analyst SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 25, 2023
TO: Mayor and Councilmembers
FROM: Administration Division, Parks and Recreation Department SUBJECT: Lease with First Friends By the Sea for Childcare Center at 130 East Cota Street [Agreement]
RECOMMENDATION:

That Council authorize the Parks and Recreation Director to execute a lease agreement with First Friends By the Sea for temporary use of the Parks and Recreation facility at 130 East Cota Street within Plaza Vera Cruz Park.

DISCUSSION:

The Parks and Recreation Department (Department) administers a number of lease agreements for facility space at below-market rates to local social service providers at its neighborhood centers. The Department also supports recreation and community service programs through co-sponsorships, collaborative initiatives, and temporary use of parks and recreational facilities.

For many years, the building, located within Plaza Vera Cruz, was leased by CommUnify and used as a head start school serving local families with preschool-aged children.

Earlier this year, Communify vacated the facility to focus on providing care in other parts of Santa Barbara County. This lease will allow a new licensed childcare operator to step in to provide care to local children. This agreement is not anticipated to roll-over in future years because the location is expected to be impacted and possibly utilized during construction of the future police station across the street at Santa Barbara and Cota Streets.

The term of the lease is 12 months beginning August 1, 2024 and may extend month to month beyond August 1, 2024 if the police station construction has not yet started. If the building may continue to be used for childcare purposes during construction, the Department will negotiate a new lease for a longer term and bring that to City Council for consideration.

Agenda Item No. 9
File Code No. 570.05
Council Agenda Report
Lease with First Friends By the Sea for Childcare Center at 130 East Cota Street [Agreement]
July 25, 2023

Page 2 ends

BUDGET/FINANCIAL INFORMATION:

The monthly rental rate for leased space is $1.56 per square foot consistent with other leased spaces at community centers. The total revenue from the lease agreement is $28,304.64, which will be appropriated in the Parks and Recreation Department operating budget. Staff will request a budget adjustment as part of the upcoming first quarter financial review. Future lease payments will be appropriated in the FY2025 budget.

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

PREPARED BY: Jazmin LeBlanc, Assistant Parks and Recreation Director SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office

Santa Barbara City CouncilJuly 25, 2023

Santa Barbara City Council
July 25, 2023