Santa Barbara City Council
October 24, 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
OCTOBER 24, 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.

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. (CONTINUED ON NEXT PAGE)
REPORTS: Copies of the reports relating to agenda items are available for review at http://www.SantaBarbaraCA.gov/CAP.In accordance with state law requirements, this agenda generally contains only a brief general description of each item of business to be transacted or discussed at the meeting. Should you wish more detailed information regarding any particular agenda item, you are encouraged to obtain a copy of the Council Agenda Report (a "CAR") online at the City's website (http://www.SantaBarbaraCA.gov/CAP). Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are posted to the City’s website as soon as reasonably feasible.

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

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

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

AMERICANS WITH DISABILITIES ACT: If you need auxiliary aids or services or staff assistance to attend or participate in this meeting, please contact the City Administrator's Office at 564-5305 or by email at [email protected]. If possible, notification at least 48 hours prior to the meeting will usually enable the City to make reasonable arrangements. For those who need accessibility accommodation in using the “raise hand” function and/or registering to participate in the Zoom session, please contact the Clerk’s office by 5:00 p.m. the day before the meeting for assistance. Additionally, a speaker may email [email protected] by 5:00 p.m. the day before a meeting, stating which item they wish to speak on. Specialized services, such as sign language interpretation or documents in Braille, may require additional lead time to arrange. 10/24/2023 Santa Barbara City Council Final Agenda Page 1 OCTOBER 24, 2023 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Restructure of Santa Barbara Community Housing Corporation’s Loan on Property Located at 821 Bath Street (120.03)
Recommendation: That Finance Committee consider and recommend that City Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Restated Loan Agreement with Santa Barbara Community Housing Corporation, a California Nonprofit Public Benefit Corporation, Secured by a Restated Deed of Trust, and New 90-Year Affordability Control Covenant Imposed on Real Property Located at 821 Bath Street; and Authorizing the Community Development Director to Execute Such Agreements, Subject to Approval as to Form by the City Attorney, as Necessary.

2. Subject: Recommend Adoption of a Pension Management Policy and Section 115 Trust (120.03)
Recommendation: That Finance Committee:

A. Recommend that Council adopt a resolution approving a pension management policy;
B. Recommend that Council adopt a resolution approving the establishment of a post-employment benefits trust (115 Trust) administered by Public Agency Retirement Services (PARS), by appointing the City’s Finance Director as Plan Administrator, authorizing the plan administrator to execute the agreement for administrative services and establish the investment policy statement with PARS; and
C. Recommend that Council adopt a resolution appropriating the transfer of funds from Enterprise, Internal Service, and other Funds from available reserves into the 115 Trust in Fiscal Year (FY) 2024.
10/24/2023 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 Arts & Humanities Month, October 2023 (120.04)

CHANGES TO THE AGENDA

CONSENT CALENDAR

2. Subject: Acceptance of State of California Office of Traffic Safety Selective Traffic Enforcement Grant [Resolution; Agreement] (520.04) Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 23-076, Adopting the Budget for Fiscal Year 2024, to Approve an Increase of Revenue and Expenditure Appropriations in Fiscal Year 2024 in the Police Department Miscellaneous Grants Fund Budget in the Amount of $180,000; and
B. Accept the State of California, Office of Traffic Safety Grant in the amount of $180,000 and authorize the Chief of Police to execute the grant agreement.

3. Subject: Agreement Between the Library Department and Family Service Agency of Santa Barbara for Community Support Services [Agreement] (570.04)
Recommendation: That Council authorize the Library Director to execute a City Professional Services Agreement in the amount of $126,833 with Family Service Agency of Santa Barbara to provide a Community Support Specialist contracted position that would work in collaboration with Library staff through June 30, 2024. 10/24/2023 Santa Barbara City Council Final Agenda Page 3

4. Subject: Increase in Professional Service Agreement with CIO Solutions, Limited Partnership, For Network Administration Services [Agreement] (520.04)
Recommendation: That Council authorize an increase in the professional service agreement with CIO Solutions, Limited Partnership (CIO Solutions), for Network Administration services, in the amount of $60,000, for a total not to exceed amount of $95,000.

5. Subject: Professional Services Agreement with Crossroads Software, Inc. for Electronic Traffic Citation Software Services (eCitation) [Agreement] (520.04)
Recommendation: That Council approve a professional service agreement with Crossroads Software, Inc. for the purchase of electronic traffic citation issuance software services (eCitation) in the amount of $39,500.

6. Subject: Purchase of Motorola Solutions, Inc. Radio Equipment (520.04) Recommendation: That Council authorize a purchase order in the amount of $1,834,205 for the purchase of radio equipment, accessories, and accompanying licenses from Motorola Solutions, Inc.

This concludes the Consent Calendar.

REPORT FROM THE FINANCE COMMITTEE

PUBLIC COMMENT

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ATTORNEY

7. Subject: Exception to the 180-Day Waiting Period to Hire a CalPERS Retired Annuitant in Accordance with Government Code Sections 7522.56 and 21224 [Resolution] (430.08)
Recommendation: That Council adopt, by reading of title only, a Resolution Approving Exception to the 180-day Waiting Period to Hire a CalPERs Retired Annuitant in Accordance with Government Code Sections 7522.56 and 21224. 10/24/2023 Santa Barbara City Council Final Agenda Page 4

PUBLIC WORKS DEPARTMENT

8. Subject: Capital Program Procurement Update and Need for Recommended Ballot Measure to Amend City Charter Enabling Additional Procurement Options (110.03)
Recommendation: That Council:

A. Receive a report from staff on current capital program procurement limitations and opportunities for improved project delivery through additional procurement methods; and
B. Direct staff to initiate procedural steps to place a ballot measure on the March 5, 2024, Presidential Primary Election.

MAYOR AND COUNCIL REPORTS

9. Subject: Interviews for City Advisory Groups (140.05) Recommendation: That Council:

A. Hold interviews of applicants to various City Advisory Groups (Est. time 4:00 p.m.); and
B. Continue interviews of applicants to October 31, 2023 (Est. time 4:00 p.m.) and November 7, 2023 (Est. time 6:00 p.m.).

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)
10/24/2023 Santa Barbara City Council Final Agenda Page 5

CLOSED SESSIONS

10. Subject: Conference with Labor Negotiator (440.05)
Recommendation: That Council hold a closed session pursuant to the authority of Government Code Section 54957.6 to consider instructions to City negotiator Wendy Levy, Human Resources Director, Sam Ramirez, Labor Relations Manager, Assistant City Attorney John Doimas, and Oliver Yee, Attorney with Liebert Cassidy Whitmore, regarding negotiations with, Service Employees’ International Union, Local 620, Treatment and Patrol Bargaining Units, Santa Barbara City Employees’ Association (General Bargaining Unit) Local 620 Service Employees’ International Union, Fire Management Association, Santa Barbara City Firefighters Association, Police Officers Association, Police Management Association, Santa Barbara City Supervisory Employees, and Unrepresented Management and Confidential Employees.

Scheduling: Duration, 45 Minutes; anytime
Report: None anticipated

11. Subject: Public Employment/Public Employee Appointment (440.05) Recommendation: That Council hold a closed session, per Government Code Section 54957(b)(1), to discuss appointment for the position of Interim City Administrator and, if appropriate, make a decision regarding that appointment.

Scheduling: Duration: 30 minutes; anytime
Report: Report anticipated.

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: October 24, 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_0UkDf36dR4uiNTjOOe2jZQ Webinar ID: 843 7012 3359
Passcode: 479952
After registering, you will receive a confirmation email containing information about joining the webinar.
 Telephone: Dial 1-669-900-6833, Enter Webinar ID: 843 7012 3359 (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
ITEMS FOR CONSIDERATION:

1. Subject: Restructure of Santa Barbara Community Housing Corporation’s Loan on Property Located at 821 Bath Street
Recommendation: That Finance Committee consider and recommend that City Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Restated Loan Agreement with Santa Barbara Community Housing Corporation, a California Nonprofit Public Benefit Corporation, Secured by a Restated Deed of Trust, and New 90-Year Affordability Control Covenant Imposed on Real Property Located at 821 Bath Street; and Authorizing the Community Development Director to Execute Such Agreements, Subject to Approval as to Form by the City Attorney, as Necessary.

2. Subject: Recommend Adoption of a Pension Management Policy and Section 115 Trust
Recommendation: That Finance Committee:

A. Recommend that Council adopt a resolution approving a pension management policy;
B. Recommend that Council adopt a resolution approving the establishment of a post-employment benefits trust (115 Trust) administered by Public Agency Retirement Services (PARS), by appointing the City’s Finance Director as Plan Administrator, authorizing the plan administrator to execute the agreement for administrative services and establish the investment policy statement with PARS, and
C. Recommend that Council adopt a resolution appropriating the transfer of funds from Enterprise, Internal Service, and other Funds from available reserves into the 115 Trust in Fiscal Year (FY) 2024.

CITY OF SANTABARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Finance Committee
FROM: Housing and Human Services Division, Community
Development Department
SUBJECT: Restructure of Santa Barbara Community Housing Corporation’s Loan on Property Located at 821 Bath Street
RECOMMENDATION:

That Finance Committee consider and recommend that City Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Restated Loan Agreement with Santa Barbara Community Housing Corporation, a California Nonprofit Public Benefit Corporation, Secured by a Restated Deed of Trust, and New 90-Year Affordability Control Covenant Imposed on Real Property Located at 821 Bath Street; and Authorizing the Community Development Director to Execute Such Agreements, Subject to Approval as to Form by the City Attorney, as Necessary.

DISCUSSION:

Loan History and Default
In 1989, Santa Barbara Community Housing Corporation (SBCHC) acquired property located at 821 Bath Street (property). The multifamily property has 12 total residential units, consisting of 11 two-bedroom units and a one-bedroom unit. On July 14, 1989, the City’s Redevelopment Agency provided a loan in the amount of $470,000 to SBCHC for acquisition and rehabilitation of the Property. The loan term was for 30 years accruing simple interest at 4.5 percent annually, with residual receipt1 payments due any year ending with a positive net cash flow.

As of October 1, 2023, the total loan balance with accrued interest is $913,821 This is the original principal balance of $470,000 with accrued interest in the amount of $443,821. 1 Residential receipts are annual revenues minus annual costs.

Agenda Item No. 1
File Code No. 120.03
Finance Committee Agenda Report
Restructure of Santa Barbara Community Housing Corporation’s Loan on Property Located at 821 Bath Street
October 24, 2023

Payments in the amount of $256,815.02 have been made over the history of the loan; however, this has not fully paid off the loan principal or accrued interest, and the loan was due and payable in full on July 14, 2019.

SBCHC has submitted a request to the City for restructuring the loan to extend the time for repayment (Attachment 1) to allow for the continued financial viability of the property and to provide well maintained affordable housing for an additional 90 years as required for the proposal.

Proposed Restructured Loan
The loan will be restructured to allow an additional 30 years for repayment; however, the repayments will be amortized to ensure full repayment at loan maturity in 2053. The total monthly payment will be approximately $3,632 per month over 30 years. This amount includes the following considerations:
 The original $470,000 principal will be rewritten at 4.5 percent for 30 years, which equals $2,382 per month.
 The unpaid accrued interest of approximately $450,000 will be amortized at zero percent during the same 30 years to avoid accruing compound interest, which equals approximately $1,250 per month. (The actual amount will adjust according to the day of escrow closing).
 An extended 90-year City Affordability Control Covenant Imposed on Real Property (Covenant) will be recorded on the property to restrict tenancies to five Low-Income households whose total income does not exceed 80 percent of the Area Median Income (AMI) and seven Very-Low-Income households whose total income does not exceed 50 percent of the AMI2 (in accordance with SBCHC’s request to be more restrictive than the usual 80 percent AMI maximum). These units may be adjusted between the two income-level categories upon vacancies as long as the total mix of units restricted conforms to the above requirements.  SBCHC’s request that City not unreasonably withhold consent to subordinate City debt to conventional financing will be considered according to City policy. SBCHC’s request that City subordinate City’s covenant is contrary policy and typically will not be approved.

Long-Term Affordability
2 As determined and published by the U.S. Department of Housing and Urban Development (HUD) Finance Committee Agenda Report
Restructure of Santa Barbara Community Housing Corporation’s Loan on Property Located at 821 Bath Street
October 24, 2023

The Covenant that was recorded on the property in 1989 has expired. SBCHC has always held affordable housing as the organization’s mission and has continued to lease the units to Lower-Income households, in accordance with their core goal, despite the expiration of the City’s Covenant. As a condition of the restructured loan, the City will record a new 90- year Covenant concurrently with the required loan documents requiring that the property remain affordable to Lower-Income households for 90 years (2114), with five units restricted to Low-Income at 80 percent AMI or below and seven units restricted to Very Low-Income at 50 percent AMI or below, as requested by SBCHC.

Conclusion
Staff supports the proposed loan restructure request because it supports the City’s General Plan Housing Element, Housing Opportunities Policy, Section H2, which states, “Promote equal housing opportunities for all segments of the community, with special emphasis given to extremely low, very low, low, moderate, middle income and special needs households.”
Staff requests that the Finance Committee recommend that City Council approve the loan restructure request for property located at 821 Bath Street to cure the current default condition and to continue to provide the much-needed affordable housing units for the Lower-Income households for an additional 90 years.

BUDGET/FINANCIAL INFORMATION:

Funding for the original loan provided in the amount of $470,000 has already been disbursed from the City’s, now-dissolved, Redevelopment Agency, and no additional funding will be needed to accomplish the restructuring of the original principal and unpaid accrued interest amounts. All outstanding unpaid accrued interest will be added to the new restructured loan terms. Once the loan documents are finalized and recorded, monthly payments of $3,632 will commence, generating additional revenue in the City’s Affordable Housing Fund of approximately $43,500 annually.

ATTACHMENTS: 1. Santa Barbara Community Housing Corporation’s Request Letter Dated 9/29/23

2. Restructured Loan Amortization Schedules

3. Ordinance Draft
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director Finance Committee Agenda Report
Restructure of Santa Barbara Community Housing Corporation’s Loan on Property Located at 821 Bath Street
October 24, 2023

APPROVED BY: City Administrator’sOffice
Attachment 1
Loan amount 470,000
Loan term 30 years 0 months
Interest rate 4.5
Calculate Clear
Monthly Pay: $2,381.42
55% 45%
Principal
Interest
Total of 360 monthly
payments $857,311.54
Total interest $387,311.54
Year
$0
$200K
$400K
$600K
$800K
0 5 10 15 20 25 30
Balance
Interest
Payment
Annual Schedule Monthly Schedule
Year Interest Principal Ending
Balance
1 $20,994.89 $7,582.17 $462,417.83
2 $20,646.56 $7,930.49 $454,487.35
3 $20,282.24 $8,294.81 $446,192.53
4 $19,901.18 $8,675.88 $437,516.66
5 $19,502.61 $9,074.44 $428,442.21
6 $19,085.73 $9,491.32 $418,950.89
7 $18,649.70 $9,927.35 $409,023.53
8 $18,193.64 $10,383.41 $398,640.12
9 $17,716.63 $10,860.43 $387,779.70
10 $17,217.70 $11,359.35 $376,420.34
11 $16,695.85 $11,881.20 $364,539.15
12 $16,150.03 $12,427.02 $352,112.13
13 $15,579.14 $12,997.91 $339,114.21
14 $14,982.02 $13,595.04 $325,519.18
15 $14,357.46 $14,219.59 $311,299.59
16 $13,704.22 $14,872.83 $296,426.75
17 $13,020.96 $15,556.09 $280,870.66
18 $12,306.32 $16,270.73 $264,599.93
19 $11,558.84 $17,018.21 $247,581.72
20 $10,777.03 $17,800.02 $229,781.70
21 $9,959.30 $18,617.75 $211,163.95
22 $9,104.00 $19,473.05 $191,690.90
Amortization Calculator
Amortization schedule
Optional: make extra payments
Attachment 2
23 $8,209.41 $20,367.64 $171,323.26
24 $7,273.73 $21,303.32 $150,019.94
25 $6,295.06 $22,281.99 $127,737.94
26 $5,271.43 $23,305.62 $104,432.32
27 $4,200.77 $24,376.28 $80,056.04
28 $3,080.93 $25,496.12 $54,559.92
29 $1,909.64 $26,667.41 $27,892.51
30 $684.55 $27,892.51 $-0.00
by Calculator.net
Loan amount 450,000
Loan term 30 years 0 months
Interest rate 0
Calculate Clear
Monthly Pay: $1,250.00
100%
0% Principal
Interest
Total of 360 monthly
payments $450,000.00
Total interest $0.00
Year
$0
$100K
$200K
$300K
$400K
0 5 10 15 20 25 30
Balance
Interest
Payment
Annual Schedule Monthly Schedule
Year Interest Principal Ending
Balance
1 $0.00 $15,000.00 $435,000.00
2 $0.00 $15,000.00 $420,000.00
3 $0.00 $15,000.00 $405,000.00
4 $0.00 $15,000.00 $390,000.00
5 $0.00 $15,000.00 $375,000.00
6 $0.00 $15,000.00 $360,000.00
7 $0.00 $15,000.00 $345,000.00
8 $0.00 $15,000.00 $330,000.00
9 $0.00 $15,000.00 $315,000.00
10 $0.00 $15,000.00 $300,000.00
11 $0.00 $15,000.00 $285,000.00
12 $0.00 $15,000.00 $270,000.00
13 $0.00 $15,000.00 $255,000.00
14 $0.00 $15,000.00 $240,000.00
15 $0.00 $15,000.00 $225,000.00
16 $0.00 $15,000.00 $210,000.00
17 $0.00 $15,000.00 $195,000.00
18 $0.00 $15,000.00 $180,000.00
19 $0.00 $15,000.00 $165,000.00
20 $0.00 $15,000.00 $150,000.00
21 $0.00 $15,000.00 $135,000.00
22 $0.00 $15,000.00 $120,000.00
Amortization Calculator
Amortization schedule
Optional: make extra payments
23 $0.00 $15,000.00 $105,000.00
24 $0.00 $15,000.00 $90,000.00
25 $0.00 $15,000.00 $75,000.00
26 $0.00 $15,000.00 $60,000.00
27 $0.00 $15,000.00 $45,000.00
28 $0.00 $15,000.00 $30,000.00
29 $0.00 $15,000.00 $15,000.00
30 $0.00 $15,000.00 $0.00
by Calculator.net
ATTACHMENT 3
ORDINANCE NO.____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A RESTATED LOAN

AGREEMENT WITH SANTA BARBARA COMMUNITY

HOUSING CORPORATION, A CALIFORNIA NONPROFIT

PUBLIC BENEFIT CORPORATION, SECURED BY A

RESTATED DEED OF TRUST, AND NEW NINETY-YEAR

AFFORDABILITY CONTROL COVENANT IMPOSED ON
REAL PROPERTY LOCATED AT 821 BATH STREET;

AND AUTHORIZING THE COMMUNITY DEVELOPMENT

DIRECTOR TO EXECUTE SUCH AGREEMENTS,

SUBJECT TO APPROVAL AS TO FORM BY THE CITY

ATTORNEY, AS NECESSARY

WHEREAS, SANTA BARBARA COMMUNITY HOUSING CORPORATION
(“Owner”) is restating an existing loan on the real property commonly known as 821 Bath Street in the City of Santa Barbara ("Property); and
WHEREAS, by minute action on October 31, 2023, the City Council approved a 30-year repayment of an existing loan in the amount of Four Hundred Seventy Thousand ($470,000) with a rate of 4.5% simple interest and a 30-year repayment of an existing loan’s interest in the amount of approximately Four Hundred Fifty Thousand ($450,000) with a zero percent interest rate (“City Loan”); and
WHEREAS, in exchange for the City Loan restructure, Owner and City agree to record an Affordability Control Covenant imposed on Real Property restricting the rental of the Property to Lower-Income residents (“Covenant”) for a total of ninety (90) years to comply with the City’s Affordable Housing Policies and Procedures; and WHEREAS, on October 31, 2023, the City Council, introduced and subsequently Adopted an ordinance approving the restated City Loan, restated Deed of Trust and Covenant; and
WHEREAS, the City Loan is secured by the Restated 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 Restated City Loan; and
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 Restated City Loan, Restated Deed of Trust and Covenant is hereby approved.

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Finance Committee
FROM: Accounting Division, Finance Department
SUBJECT: Recommend Adoption of a Pension Management Policy and Section 115 Trust
RECOMMENDATION: That Finance Committee:

A. Recommend that Council adopt a resolution approving a pension management policy;
B. Recommend that Council adopt a resolution approving the establishment of a postemployment benefits trust (115 Trust) administered by Public Agency Retirement Services (PARS), by appointing the City’s Finance Director as Plan Administrator, authorizing the plan administrator to execute the agreement for administrative services and establish the investment policy statement with PARS; and C. Recommend that Council adopt a resolution appropriating the transfer of funds from Enterprise, Internal Service, and other Funds from available reserves into the 115 Trust in Fiscal Year (FY) 2024.

EXECUTIVE SUMMARY:

As a member of the California Public Employees’ Retirement System (CalPERS), the City contributes funds towards employees’ and retirees’ pension benefits. The City’s costs to make required, minimum payments have grown significantly in recent years, and is projected to continue to grow. The City is also projected to have a $431.6 Million liability on its consolidated balance sheet representing the present value of future benefits the City will be required to pay in the future. Staff is recommending that Finance Committee recommend that Council approve of a pension management policy to govern the City’s pension strategies and establish a Section 115 Trust to manage the City’s pension costs and earn greater earnings over time that can be used to more quickly reduce future pension payments and liabilities more effectively.

Agenda Item No. 2
File Code No. 120.03
Finance Committee Agenda Report
Recommend Adoption of a Pension Management Policy and Section 115 Trust October 24, 2023

DISCUSSION:

The Governmental Accounting Standards Board (GASB) issued GASB Statement No. 68, Accounting and Financial Reporting for Pensions, which required governmental employers to recognize a Net Pension Liability on their balance sheet, which is the difference between the City’s total pension liability (actuarial accrued liability) and actual plan assets. GASB 68 (which replaces the requirements of GASB 27) became effective for fiscal years starting after June 15, 2014.

The City has three main pension plans with CalPERS for Miscellaneous (Plan 181), Police (Plan 183), and Fire (Plan 182) employees with varying rates of contribution required based on the benefits offered for each bargaining unit. Each plan has both Classic and new members (Public Employees' Pension Reform Act/PEPRA) associated. An unfunded pension liability (UAL) exists on the City’s balance sheet (as required by GASB Statement No. 68), representing the present value of future payments being greater than the present value of current assets and assumed investment returns at the CalPERS discount rate.

There are not enough current assets to meet future expected costs of the promised retirement benefits. In addition to UAL, the City has seen increases in normal cost rates, which only perpetuates the UAL growth in future fiscal years.

Without intervention, the cost of pension benefits will reduce capacity for the City (and many cities across the nation) to pay for programs and services. There is also high importance and value in attracting and retaining high-performing public employees to design and deliver those vital programs and services. It is critical that efforts are continued to reduce this liability and that all options are considered when addressing the commitments to employees and expectations of the community.

A UAL payment is calculated using CalPERS methodology and is impacted by numerous variables where actual events can be different to the actuarial assumptions. Some key inputs to consider that impact pension liability include but is not limited to the discount rate used to assume investment return; salary growth requires higher contributions (MOU contracts); living longer means longer draw on pension (mortality rates); maturity measures based on ratio of active employees supporting retirees; amortization schedule changes; inflation; and pension policy. Pension policy implementation can help guide proactive pension contributions while preventing service delivery challenges related to increased costs of pension obligations, as does implementing diverse investment strategies through an exclusive benefit trust.

An Internal Revenue Service (IRS) Section 115 trust helps invest cash at higher rates of return, while diversifying investment assets and strategies that are separate from CalPERS. Cash invested into a 115 Trust is irrevocable and must be used for pension liability. An action will be required to direct funds from the trust to CalPERS to reduce pension liability, and the amount of reserves to be transferred to a Section 115 trust will be determined based on the proportional burden of expenses and liabilities in each fund.

Finance Committee Agenda Report
Recommend Adoption of a Pension Management Policy and Section 115 Trust October 24, 2023

Maintaining reserve balances will be the highest priority, followed by addressing pensionrelated expenses and future liabilities.

PARS established the first Section 115 Trust and is a predominant provider to cities in California. Approximately 500 public agencies (including 160 cities/towns) have adopted programs through PARS to reduce liabilities. Some local agencies include Goleta, Calabasas, Camarillo, Morro Bay, Thousand Oaks, and Port Hueneme. PARS partners with US Bank (trustee) and Highmark Capital Management, Inc. (management services) both of which the City has existing business.

BUDGET/FINANCIAL INFORMATION:

The FY2024 CalPERS UAL lump sum payment was $32,186,563 (56% Misc. Plan 181, 20% Classic Fire Plan 182, and 24% Police Plan 183). The City received an interest discount of roughly 3 percent by prepaying the annual UAL obligation in July, saving approximately $1,000,000. At the end of each pay period, the City is also projected to pay CalPERS the normal cost of $14,925,211 for a total projected payment to CalPERS in FY2024 of $47,111,774.

The graph below shows the expected annual minimum employer contribution amount for the unfunded liability through FY2030, based on the most recent CalPERS actuarial reports. The projections assume that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. Future requirements may differ significantly from those shown below, as long-term costs of the plans will depend on actual benefits and expense paid, and actual investment experience in the fund.
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FY2022-23 FY2023-24 FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 Expected Annual Minimum Employer Unfunded Liability
Contribution
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Finance Committee Agenda Report
Recommend Adoption of a Pension Management Policy and Section 115 Trust October 24, 2023

The graph below shows the City’s total UAL over the past three fiscal years and the overall funded status of all plans. The total UAL projected in FY2025 is $431.6 Million, resulting in an overall funded status of 67%, far below the City’s CORE performance measure target of 90%.

Staff recommends establishing a 115 Trust where funds are anticipated to yield better returns than what the City is saving through UAL prepayment and interest earnings in the City’s investment portfolio, including the Local Agency Investment Fund (LAIF).

Investment diversification can help the City reduce risk, improve returns, and ultimately reduce the UAL in future years.

Staff have not yet determined the City’s overall risk tolerance or when the invested funds are projected to be utilized to smooth UAL payments. In collaboration with PARS, Highmark Capital, and direction received from the Finance Committee and City Council, the City will establish a 115 Trust investment policy statement to guide investment management functions. There is no obligation for an initial deposit; however, as required by the City’s reserve policy, a portion of any year-end surplus will be the method in which deposits into the 115 Trust will be determined.

On December 6, 2022, the City Council adopted a resolution to appropriate $1,566,774 from the FY2022 General Fund operating surplus to be transferred to the 115 Trust once it’s established. These funds currently reside in the General Fund reserves. Staff has developed an allocation methodology based on the proportional burden of expenses and liabilities in each fund so that each fund contributes their proportional share into the 115 Trust.

The table below shows the General Fund allocation, which has already been approved by the City Council, and staff’s recommendation for allocation for all other Funds that have pension expense and liability. The total, initial allocation into the 115 Trust would be $2,232,958.
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FY2022-23 FY2023-24 FY2024-25
Unfunded Actuarial Liability Funded Ratio
CalPERS Unfunded Actuarial Liability & Funded Ratio Trend Millions
Finance Committee Agenda Report
Recommend Adoption of a Pension Management Policy and Section 115 Trust October 24, 2023

Fund Percent Allocation
General Fund 70.2% $1,566,774
Water Operating Fund 5.8% $129,507
Airport Operating Fund 4.2% $94,484
Waterfront Operating Fund 3.8% $84,437
Wastewater Operating Fund 3.8% $84,170
Streets Fund 2.4% $53,157
Facilities Management Fund 2.2% $49,554
Information Technology Fund 1.5% $32,970
Downtown Parking Fund 1.5% $32,880
Fleet Maintenance Fund 0.8% $18,120
Solid Waste Fund 0.7% $16,476
Creek Restoration/Water Quality Imp 0.7% $16,441
Measure A 0.5% $11,252
Self-Insurance Trust Fund 0.4% $8,513
City Affordable Housing 0.4% $7,821
Energy and Climate Management 0.3% $5,871
Police-Suppl Law Enforcement (SLESF) 0.2% $3,537
County Library 0.1% $2,749
Fleet Replacement Fund 0.1% $2,748
Community Development Block Grant 0.1% $2,240
Police Asset Forfeiture and Grants 0.1% $1,577
Wildland Fire Suppress Assessment 0.1% $1,412
Street Sweeping Fund 0.1% $1,351
Water Drought 0.1% $1,187
SB Clean Energy 0.0% $964
Golf Course Fund 0.0% $878
Perm Local Housing Allocation Fund 0.0% $683
Federal Home Loan Program Fund 0.0% $570
Revolving Rehab Loan Fund 0.0% $462
Misc. Grants Library 0.0% $172
Total 100.0% $2,232,958
Establishing the 115 Trust and adopting a pension management policy is a core objective of Vision 2030 and the Fiscal Sustainability Initiative to more effectively manage and control expenses in the long-term. By taking no action and continuing to make only the minimum required UAL payments, the City is at greater risk realizing higher and increasing pension expenses and liabilities. Once the 115 Trust is established, funds will be transferred, based on the method established within the Pension Management Policy, into the trust and immediately invested. In consultation with PARS and Highmark Capital Management, staff will recommend an appropriation time, dependent on market and investment conditions, when funds in the 115 Trust should be transferred to CalPERS, as an additional discretionary payment (ADP).

Finance Committee Agenda Report
Recommend Adoption of a Pension Management Policy and Section 115 Trust October 24, 2023

Establishing a 115 Trust now does not preclude the City from pursuing other or additional policy options in the future as part of a potential multi-faceted approach to addressing the large liability.

ATTACHMENTS: 1. Pension Management Policy

2. Investment Policy Statement
PREPARED BY: Jessica Yates, Accounting Supervisor
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
1 City of Santa Barbara
Pension Management Policy
Approved By: Rebecca Bjork,
City Administrator
Policy Effective: December xx, 2023
Purpose
This policy establishes guidelines, standards, and procedures for the management and effective controls of employee pension, including associated unfunded liability (long-term debt). By establishing set standards, the City can address immediate and long-term pressures related to meeting required minimum contributions, servicing its unfunded liability, providing competitive compensation to employees while continuing to provide essential services to the community.

Statement of City Policy
The Pension Management Policy covers methods currently in place and options to be considered for the effective management of employee pensions. While there are many ways to manage pension liability, several methods include, but are not limited to discretionary payments to the California Public Employees’ Retirement System (CalPERS), fresh-starts, Section 115 trusts, employee cost sharing, limiting pay increases, or the issuance of Pension Obligation Bonds (POB). All pension management activities serve the purpose of reducing unfunded pension liability obligations while continuing to provide high levels of service with the best interest of the public in mind.

It is a financial health goal of the City to maintain a minimum funding level of 90% in its defined pension plan. Decisions and strategies made regarding the management of City pensions are ultimately the decision of City Council and must be adopted by Resolution to be made effective.

It is the objective of this policy to demonstrate prudent financial management and long-term fiscal and budgetary sustainability.

Background
The City has three main pension plans with CalPERS for Miscellaneous, Police, and Fire employees with varying rates of contribution required based on the benefits offered for each bargaining unit. Each plan has both Classic and new members (Public Employees' Pension Reform Act/PEPRA) associated. An unfunded pension liability (UAL) exists on the City’s balance sheet, representing the present value of future payments being greater than the present value of current assets and assumed investment returns at the CalPERS discount rate. There are not enough current assets to meet future expected costs of the promised retirement ATTACHMENT 1
2 benefits. In addition to UAL, the City has seen increases in normal cost rates, which only perpetuates the UAL growth in future fiscal years.

The City sends CalPERS payments in the following two ways:

1. Bi-weekly payroll process whereby a CalPERS determined Normal Cost percentage is deducted from the employee (EE contribution) and from the employee’s associated department (ER contribution), and

2. Annual payment towards the UAL. UAL payments do not have to be paid in one lump sum, but can be spread over 12 monthly payments, albeit at a cost to the City.

By paying the annual UAL required payment in advance for the fiscal year ahead, the City can take advantage of the discount rate applied. There is an investment benefit to paying ahead as CalPERS assumes to make higher rates of return. If CalPERS makes less than 6.8% annual returns in any given year(s), CalPERS will likely reflect additional UAL over a longer duration compared to the current actuarial report projections.

The UAL payment is calculated using CalPERS’ methodology and is impacted by numerous variables where actual events can be different to the actuarial assumptions. Some key inputs to consider that impact pension liability include, but are not limited to, the discount rate used to assume investment return; salary growth requires higher contributions (MOU contracts); mortality rates, living longer means longer draw on pension; maturity measures based on ratio of active employees supporting retirees; amortization schedule changes; inflation; and pension policy. Pension policy implementation can help guide proactive pension contributions while preventing service delivery challenges related to increased costs of pension obligations.

Pension Funding Guide
A Guide for Elected Officials, issued by eleven national groups including the U.S. Conference of Mayors, the International Agency/County Management Association, and the Government Finance Officers Association, established the following five general policy objectives for a pension funding policy:

1. Actuarially Determined Contributions (ADC): A pension funding plan should be based upon an ADC that incorporates both the cost of benefits in the current year and the amortization of the plan’s unfunded actuarial accrued liability.

2. Fund discipline: A commitment to make timely, actuarially determined contributions to the retirement system is needed to ensure that sufficient assets are available for all current and future retirees.

3. Intergenerational equity: Annual contributions should be reasonably related to the expected and actual cost of each year of service so that the cost of employee benefits is paid by the generation of taxpayers who receives from those employees.

4. Contributions as a stable percentage of payroll: Contributions should be managed so that employer costs remain consistent as a percentage of payroll over time. 3 5. Accountability and transparency: Clear reporting of pension funding should include an assessment of whether, how, and when the plan sponsor will ensure sufficient assets are available for all current and future retirees.

UAL Reduction Strategies
Paying Normal Costs (rate of contributions) alone will not address the present value of current and future pension benefits exceeding the market value of the assets (lower investment returns than discount rate). The Public Employees’ Pension Reform Act (PEPRA) has provided some relief by limiting the maximum annual compensation eligible for pension calculations and it mandates a different retirement formula (reduced employee benefits for hires after January 1, 2013), however, additional pension management strategies are needed. Uncertainty is inevitable and generally understated, but with diligent assessment and action backed with facts and figures, pension stabilization can occur and reduce cost while maintaining fair compensation for employees and vital City services.

Prepayment of Annual UAL: The City will continue to make prepayments to the annual UAL when financially able and will budget adequate expenditure appropriation in each budget cycle to prepay the UAL.

Additional Discretionary Payments (ADP): When making additional payments to CalPERS, the City shall be required to select which base these monies should be applied. The City should select a shorter-term base to have the maximum impact on budgetary savings, and a longer-term base to maximize total UAL savings. To the extent that CalPERS discount rate (expected rate of return) exceeds the City’s expected investment returns, the City shall apply a portion of its excess reserves, above stated policy goals/objectives, to pay unfunded liabilities.

Cost Sharing Opportunities: The City will continue to negotiate with labor units to address pension contributions and cost sharing strategies in the event of significant or unexpected changes.

Amortization Schedule Adjustment: The City shall consider the pros and cons of selecting an alternative amortization schedule than currently offered by CalPERS as an alternative to ADP when evaluating ADPs.

Pension Stabilization Reserve: At the end of each fiscal year, 50% of 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 address pension-related expenses and future liabilities (Resolution 22-126). Annual contributions need to be enough to accumulate earnings and reduce UAL, but contributions should not be done in a way that operating budgets are impacted. Funds within the Pension Stabilization Reserve will be transferred annually to the Section 115 Trust for future ADP payments.

Section 115 Trust: A Section 115 trust helps invest cash at higher rates of return, while diversifying investment assets and strategies that are separate from CalPERS. Cash 4 invested into a Section 115 Trust is irrevocable and must be used for pension liability only. Action is required to direct funds from the trust to CalPERS to reduce pension liability. The amount 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 healthy citywide fund balances will be the highest priority, followed by addressing pension-related expenses and future liabilities.

The City, in partnership with a selected financial advisor that specializes in pension/OBEB issues, will manage the Section 115 trust investments and annually report trust earnings. The management and administration of the Section 115 Trust will be contracted out to a professional and competent fiduciary, but direction of resources must be agreed to by the City. The firm to manage the trust will be a full-service program, including administration, management, and trustee. The selected firm will create and manage the City’s pension investment policy, asset allocation guidelines, and funding strategies (based on risk tolerance), and will provide periodic reporting (quarterly and annually). The selected firm will also coordinate contributions and process distribution requests, educate on the trust program, complete GASB 74/75 reporting, and will remain in full compliance with the related contract and state/federal laws.

Pension Obligation Bond (POB): the City may consider use of pension obligation bonds (formal debt agreement to pay bond holders a fixed percentage over the lifetime of the bond), given the right economic circumstances. POBs can help reduce the short term and overall cash outflows for the City, while enhancing long-term sustainability and predictability (lower/fixed annual costs). Any POB issuance requires market consideration and majority vote from City Council prior to adoption. A POB should be used only for strategic management of pension liabilities and not under financial duress.

Before POBs are considered, a complete risk analysis should be conducted and presented in a public meeting. Any POB issuance shall be consistent with the City’s debt management policy.

Since these bonds are issued on a taxable basis, they carry a higher interest rate than traditional municipal “tax-exempt” debt. The City shall adhere to the following general criteria:

1. Unfunded liabilities should not exceed the 95% funding level, after the application of bond proceeds.

2. Bonds shall not be structured to defer payments or extend the final maturity date.

3. Bonds shall be structured with standard call provisions (e.g., 100%-102% in 10 years).

4. Bonds shall not finance current or normal costs; they shall only be used to refinance unfunded pension and other post employee benefit (OPEB) liabilities.

5. Interest rate on bonds shall be at least 2.0-2.5% less than the current /projected CalPERS Discount Rate.
5 6. Bonds should provide demonstrated cash flow savings - a target minimum of 10% NPV savings (except for refunding bonds).

7. To maximize the benefit of POBs, the City shall seek the reinvestment of cash flow savings into other liability reduction strategies, such as additional payments into a Section 115 Trust.

Tax-Exempt Exchange: When it is fiscally prudent and responsible under the prevailing economic conditions, and in compliance with the City’s debt management policy, the City may seek a tax-exempt exchange by utilizing debt proceeds from typical pay-go capital improvement projects to apply to the UAL.

Superfunded Status: If the City achieves “superfunded” status, where asset values exceed the accrued liability (i.e., funding level exceeds 100%), any excess amount shall be reported to City Council and staff will provide a recommendation on the handling of these excess funds.

Fresh Start: A Fresh Start is the re-amortization of one or more of the Unfunded Accrued Liability amortization bases over a shorter period. The goal of a Fresh Start is to reduce the UAL more quickly and provide significant long-term savings.

Other: As alternative methods are determined to help reduce the City’s pension liability; it will be the responsibility of the Finance Department to complete due diligence to ensure the selected method will achieve the desired outcome of reducing the City’s overall liability.

Responsible Parties
The Finance Department will be responsible for coordinating all pension-related payments and reduction strategies in conjunction with this policy and CalPERS requirements. It shall also be their responsibility to identify budgetary savings and recommend allocations as deemed necessary with consideration to impending General Fund and other fund obligations. After the release of the most current CalPERS actuarial report, staff shall present a summary of each plan’s funding status. New amortization levels shall be specifically addressed. This information shall be presented during a Finance Committee meeting, which shall include a summary of funding status, funding progress compared to prior years, as well as any recommended actions and/or budget adjustments to address areas of concern.

It shall be the responsibility of the City Council to understand pension liability obligations and make decisions necessary to protect the health and vitality of the City. It shall be the responsibility of the investment authority to purchase, sell, exchange, invest, reinvest, and manage the designated assets held in the Section 115 Trust in coordination with the City and in alignment with their contract and this policy.

It shall be the responsibility of all authorized individuals to prevent service delivery challenges related to the increased costs of pension obligations and to proactively identify impacts and recommend mitigation strategies, as appropriate, through the budget development process. 6 Policy Amendments
This policy is intended to provide general guidelines. Each individual decision shall require analysis and review on a case-by-case basis. This policy document requires periodic review and update to consider changes in the City’s financial position and funding status. Any amendments to this Policy shall be made by Resolution during a City Council meeting to provide transparency to the public and the opportunity for input. Nothing in this funding policy shall constitute an obligation upon the City, nor an implied contract. The City Council may revoke or amend this policy in the best interests of the City.

Reporting
The Finance Director shall submit Section 115 Trust investment reports to the Finance Committee and the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the Section 115 Trust. Based on the discretion of the Finance Committee, an independent advisor may be contracted, from time to time, to perform one or more of the following functions: confirm that the Section 115 Trust is in compliance with the Government Code of the State of California and with the Statement of the Pension Management Policy of the City of Santa Barbara; present an evaluation of the Section 115 Trust and recommendations; and, provide any other information that may be helpful to the Finance Committee in review of the Section 115 Trust and related UAL.

City of Santa Barbara
Finance Department
Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023
ATTACHMENT 2
Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023

Scope and Purpose
The purpose of this Investment Policy Statement is to:
• Facilitate the process of ongoing communication between the Plan Sponsor and its plan fiduciaries;
• Confirm the Plan’s investment goals and objectives and management policies applicable to the investment portfolio identified below and obtained from the Plan Sponsor; • Provide a framework to construct a well-diversified asset mix that can potentially be expected to meet the account’s short- and long-term needs that is consistent with the account’s investment objectives, liquidity considerations and risk tolerance; • Identify any unique considerations that may restrict or limit the investment discretion of its designated investment managers;
• Help maintain a long-term perspective when market volatility is caused by short-term market movements.

Key Plan Sponsor Account Information
Plan Sponsor: City of Santa Barbara
Governance: The City Council for the City of Santa Barbara Plan Name (“Plan”): City of Santa Barbara Employee Benefit Fund Pension Plan Trustee: US Bank
Contact: Sue Hughes, 949-224-7209 [email protected] Type of Account: Pension Plan
ERISA Status: Not subject to ERISA
Investment Manager: US Bank, as discretionary trustee, has delegated investment management responsibilities to HighMark Capital Management, Inc. (“Investment Manager”), an SEC-registered investment adviser Contact: Salvatore ‘Tory’ Milazzo, CFA, 208-284-9245
[email protected]
Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023

Investment Authority: Except as otherwise noted, the Trustee, US Bank, has delegated investment authority to HighMark Capital Management, an SEC-registered investment adviser. Investment Manager has full investment discretion over the managed assets in the account. Investment Manager is authorized to purchase, sell, exchange, invest, reinvest and manage the designated assets held in the account, all in accordance with account’s investment objectives, without prior approval or subsequent approval of any other party(ies).

Investment Objectives and Constraints
The goal of the Plan’s investment program is to generate adequate long-term returns that, when combined with contributions, will result in sufficient assets to pay the present and future obligations of the Plan. The following objectives are intended to assist in achieving this goal:
• The Plan should seek to earn a return in excess of its policy benchmark over the life of the Plan.
• The Plan’s assets will be managed on a total return basis which takes into consideration both investment income and capital appreciation. While the Plan Sponsor recognizes the importance of preservation of capital, it also adheres to the principle that varying degrees of investment risk are generally rewarded with compensating returns. To achieve these objectives, the Plan Sponsor allocates its assets (asset allocation) with a strategic perspective of the capital markets.

Investment Time Horizon: Intermediate-term 5-8 years
Anticipated Cash Flows: Assets in the Plan will seek to mitigate the impact of future rate increases from CalPERS. It is anticipated that cash flow requirements will be modest in the early years of the Plan.

Investment Objective: The primary objective is to generate a reasonable level of growth. The assets in this Plan will eventually be used to fund Pension Plan obligations for assets managed in the CalPERS Trust.

Risk Tolerance: Moderate
The account’s risk tolerance has been rated moderate, which demonstrates that the account can accept price fluctuations to pursue its investment objectives.

Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023

Strategic Asset Allocation: The asset allocation ranges for this objective are listed below:

Strategic Asset Allocation Ranges
Cash Fixed Income Equity
0-20% 40%-60% 40%-60%
Policy: 5% Policy: 45% Policy: 50%
Market conditions may cause the account’s asset allocation to vary from the stated range from time to time. The Investment Manager will rebalance the portfolio no less than quarterly and/or when the actual weighting differs substantially from the strategic range, if appropriate and consistent with your objectives.

Security Guidelines:

Equities
With the exception of limitations and constraints described above, Investment Manager may allocate assets of the equity portion of the account among various market capitalizations (large, mid, small) and investment styles (value, growth). Further, Investment Manager may allocate assets among domestic, international developed and emerging market equity securities.

Total Equities 40%-60%
Equity Style Range
Domestic Large Cap Equity 15%-45%
Domestic Mid Cap Equity 0%-10%
Domestic Small Cap Equity 0%-15%
International Equity (incl. Emerging Markets) 0%-15%
Real Estate Investment Trust (REIT) 0%-15%
Fixed Income
In the fixed income portion of the account, Investment Manager may allocate assets among various sectors and industries, as well as varying maturities and credit quality that are consistent with the overall goals and objectives of the portfolio.

Total Fixed Income 40%-60%
Fixed Income Style Range
Long-term bonds (maturities >7 years) 0%-25%
Intermediate-term bonds (maturities 3-7
years)
25%-60%
Short-Term bonds (maturities <3 years) 0%-25%
High Yield bonds 0%-10%
Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023

Performance Benchmarks:

The performance of the total Plan shall be measured over a three and five-year periods. These periods are considered sufficient to accommodate the market cycles experienced with investments.

The performance shall be compared to the return of the total portfolio blended benchmark shown below.

Total Portfolio Blended Benchmark

26.50% S&P500 Index

5.00% Russell Mid Cap Index

7.50% Russell 2000 Index

3.25% MSCI Emerging Market Index

6.00% MSCI EAFE Index

1.75% Wilshire REIT Index

33.50% Bloomberg U.S. Aggregate Bond Index

10.00% ICE BofA 1-3 Year US Corp/Gov’t

1.50% ICE BofA High Yield Master II Index

5.00% FTSE 1Mth T-Bill
Asset Class/Style Benchmarks
Over a market cycle, the long-term objective for each investment strategy is to add value to a market benchmark. The following are the benchmarks used to monitor each investment strategy:

Large Cap Equity S&P 500 Index
Growth S&P 500 Growth Index
Value S&P 500 Value Index
Mid Cap Equity Russell Mid Cap Index
Growth Russell Mid Cap Growth Index
Value Russell Mid Cap Value Index
Small Cap Equity Russell 2000 Index
Growth Russell 2000 Growth Index
Value Russell 2000 Value Index
REITs Wilshire REIT Index
International Equity MSCI EAFE Index
Investment Grade Bonds Bloomberg U.S Aggregate Bond Index High Yield ICE BofA High Yield Master II Index
Security Selection
Investment Manager may utilize a full range of investment vehicles when constructing the investment portfolio, including but not limited to individual securities, mutual funds, and exchange-traded funds.

In addition, to the extent permissible, Investment Manager is authorized to invest in shares of mutual funds in which the Investment Manager serves as advisor or sub-adviser.

Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023

Investment Limitations:

The following investment transactions are prohibited:
• Direct investments in precious metals (precious metals mutual funds and exchange-traded funds are permissible).
• Venture Capital
• Short sales*
• Purchases of Letter Stock, Private Placements, or direct payments • Leveraged Transactions*
• Commodities Transactions Puts, calls, straddles, or other option strategies* • Purchases of real estate, with the exception of REITs • Derivatives, with exception of ETFs*
*Permissible in diversified mutual funds and exchange-traded funds Duties and Responsibilities
Responsibilities of Plan Sponsor
The Plan Administrator (Plan Administrator for the Plan) is responsible for:
 Confirming the accuracy of this Investment Guidelines Document, in writing.  Advising Trustee and Investment Manager of any change in the plan/account’s financial situation, funding status, or cash flows, which could possibly necessitate a change to the account’s overall risk tolerance, time horizon or liquidity requirements; and thus would dictate a change to the overall investment objective and goals for the account.  Monitoring and supervising all service vendors and investment options, including investment managers.
 Avoiding prohibited transactions and conflicts of interest.

Responsibilities of Trustee
The Plan Trustee is responsible for:
 Valuing the holdings.
 Collecting all income and dividends owed to the Plan.  Settling all transactions (buy-sell orders).

Responsibilities of Investment Manager
The Investment Manager is responsible for:
 Assisting the Plan Administrator with the development and maintenance of this Investment Policy Guideline document annually.
 Meeting with the Plan Administrator annually to review portfolio structure, holdings, and performance and assisting in presenting the annual review to City Council.

Investment Policy Statement
Employee Benefits Fund Pension Plan
December XX, 2023

 Designing, recommending and implementing an appropriate asset allocation consistent with the investment objectives, time horizon, risk profile, guidelines and constraints outlined in this statement.
 Researching and monitoring investment advisers and investment vehicles.  Purchasing, selling, and reinvesting in securities held in the account.  Monitoring the performance of all selected assets.
 Voting proxies, if applicable.
 Recommending changes to any of the above.
 Periodically reviewing the suitability of the investments, being available to meet with the City Administrator at least once each year and being available at such other times within reason at your request.
 Preparing and presenting appropriate reports.
 Informing the Plan Administrator if changes occur in personnel that are responsible for portfolio management or research.

Acknowledgement and Acceptance
I/We being the Plan Sponsor with responsibility for the account(s) held on behalf of the Plan Sponsor specified below, designate Investment Manager as having the investment discretion and management responsibility indicated in relation to all assets of the Plan or specified Account. If such designation is set forth in the Plan/trust, I/We hereby confirm such designation as Investment Manager.

I have read the Investment Guidelines Document, and confirm the accuracy of it, including the terms and conditions under which the assets in this account are to be held, managed, and disposed of by Investment Manager. This Investment Guidelines Document supersedes all previous versions of an Investment Guidelines Document or investment objective instructions that may have been executed for this account.
__________________________________________________ Date:________________ Plan Sponsor: Keith DeMartini, Finance Director, City of Santa Barbara __________________________________________________ Date:________________ Investment Manager: Salvatore ‘Tory’ Milazzo, CFA, Senior Portfolio Manager, 208-284-9245 Investment Strategy Selection and Disclosure Form
PARS Pension / OPEB Trust Program
ʄ This document is entered into by client and U.S. Bank National Association (“U.S. Bank”), as trustee. ʄ Employer:
ʄ Plan/Trust Name: Public Agencies Post-Employment Benefits Trust ʄ To: HighMark Capital Management, Inc. and U.S. Bank:

U.S. Bank has been or is hereby appointed Investment Manager of the above-referenced Plan/Trust. Please invest the assets of the above-referenced Plan/ Trust for which you have been appointed Investment Manager in the (select one of the strategies listed below for each Plan funded by the Trust):
‰ OPEB Account ‰‰ Pension Account Primary Goal Strategic Range
‰ Liquidity Management (US Treasury) ‰ Liquidity Management (US Treasury) Provide current income with
liquidity and stability of principal
through investments in short-term
U.S. Treasury obligations.

Money Market Fund
‰ Liquidity Management (Prime Obligation) ‰ Liquidity Management (Prime Obligation) Generate current income with liquidity. Money Market Fund

DIVERSIFIED PORTFOLIOS
‰ Conservative HighMark PLUS ‰ Conservative HighMark PLUS Provide a consistent level of inflation-protected income over the
long-term.

Equity:

Fixed Income:

Cash:
5-20%
60-95% ‰ Conservative Index PLUS ‰ Conservative Index PLUS 0-20% ‰ Moderately Conservative HighMark PLUS ‰ Moderately Conservative HighMark PLUS Provide current income with capital appreciation as a secondary
objective.

Equity:

Fixed Income:

Cash:
20-40%
50-80% ‰ Moderately Conservative Index PLUS ‰ Moderately Conservative Index PLUS 0-20% ‰ Moderate HighMark PLUS ‰ Moderate HighMark PLUS Provide current income and moderate capital appreciation.

Equity:

Fixed Income:

Cash:
40-60%
40-60% ‰ Moderate Index PLUS ‰ Moderate Index PLUS 0-20% ‰ Balanced HighMark PLUS ‰ Balanced HighMark PLUS Provide growth of principal and income.

Equity:

Fixed Income:

Cash:
50-70%
30-50% ‰ Balanced Index PLUS ‰ Balanced Index PLUS 0-20% ‰ Capital Appreciation HighMark PLUS ‰ Capital Appreciation HighMark PLUS Primary goal is growth of principal.

Equity:

Fixed Income:

Cash:
65-85%
10-30% ‰ Capital Appreciation Index PLUS ‰ Capital Appreciation Index PLUS 0-20% ‰ Custom ‰ Custom Refer to Investment Guidelines Document.

Note: HighMark PLUS portfolios are diversified portfolios of actively managed mutual funds. Index PLUS portfolios are diversified portfolios of Index-based mutual funds or exchange-traded funds.

Acknowledged and Approved
Signature of Authorized Signer Title of Authorized Signer Print Name of Authorized Signer Date
PENSION OPEB HM MANAGED  ISSDF 203 02.09.2018
Exhibit A to the Adoption Agreement
SAMPLE
Agenda Item No. 1
File Code No. 120.04

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Field Operations, Police Department
SUBJECT: Acceptance of State of California Office of Traffic Safety Selective Traffic Enforcement Grant [Resolution; Agreement]
RECOMMENDATION: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 23-076, Adopting the Budget for Fiscal Year 2024, to Approve an Increase of Revenue and Expenditure Appropriations in Fiscal Year 2024 in the Police Department Miscellaneous Grants Fund Budget in the Amount of $180,000; and
B. Accept the State of California, Office of Traffic Safety Grant in the amount of $180,000 and authorize the Chief of Police to execute the grant agreement.

DISCUSSION:

The Santa Barbara Police Department applied for and received funding from the State of California, Office of Traffic Safety, for the Selective Traffic Enforcement Program. The goals of this program are to reduce the number of victims killed and injured in alcoholimpaired collisions, as well as collisions that result from other common vehicle code violations.

The grant covers the period of October 1, 2023 - September 30, 2024. The grant funds will be used to cover overtime and benefits for first line supervisors, officers, and staff who are assigned to meet the grant reporting requirements.

Agenda Item No. 2
File Code No. 520.04
Council Agenda Report
Acceptance of State of California Office of Traffic Safety Selective Traffic Enforcement Grant [Resolution; Agreement]
October 24, 2023

BUDGET/FINANCIAL INFORMATION:

The funding from these grants will increase the department’s Miscellaneous Grants Fund estimated revenue and related appropriations by $180,000.

A copy of the grant agreement may be requested from the Police Department for public review by emailing [email protected] .

PREPARED BY: Charles Katsapis, Commander
SUBMITTED BY: Kelly Gordon, Chief of Police
APPROVED BY: City Administrator's Office
RESOLUTION NO. _____

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 23-076,
ADOPTING THE BUDGET FOR FISCAL YEAR 2024, TO

APPROVE AN INCREASE OF REVENUE AND
EXPENDITURE APPROPRIATIONS IN FISCAL YEAR 2024

IN THE POLICE DEPARTMENT MISCELLANEOUS
GRANTS FUND BUDGET IN THE AMOUNT OF $180,000.

WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2023; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2023;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, this Resolution adopted by the City Council shall memorialize that action to amend the budget as provided herein.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA that in accordance with the provisions of Section 1205 of the City Charter, the budget for the fiscal year 2024, as adopted by Resolution No.23-076, is hereby amended as follows:

1. The Council accepts the State of California, Office of Traffic Safety Grant.

2. The Council approves of the increase in revenue and expenditure appropriation of $180,000 in the Fiscal Year 2024 Police Department Miscellaneous Grants Fund.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Administration, Library Department
SUBJECT: Agreement Between the Library Department and Family Service Agency of Santa Barbara for Community Support Services
[Agreement]
RECOMMENDATION:

That Council authorize the Library Director to execute a City Professional Services Agreement in the amount of $126,833 with Family Service Agency of Santa Barbara to provide a Community Support Specialist contracted position that would work in collaboration with Library staff through June 30, 2024.

BACKGROUND:

In FY21, City Council directed staff to investigate models for providing a social services support worker that would be based out of the Library and to consider the human resources, legal, and liability issues associated with such a position. Considerations also included whether the position was under the City’s control compared with options for contracted services through the County of Santa Barbara, City Net, or another agency.

After reviewing several options, staff recommended entering into a contract with Family Service Agency of Santa Barbara in FY22 to provide services and outreach to individuals and families experiencing homelessness and housing insecurity that spend time in the building and on the grounds of the Santa Barbara Public Library, as well as provide support for other vulnerable patrons through referrals to community resources.

In the Library setting, the Community Support Specialist position provides one-to-one support for library patrons, supports Library outreach, and collaborates with other Library staff including Youth and Family staff and Literacy Education for Adults and Family staff to connect patrons to services in and outside of the Library. In addition to Community Connections appointments, the Community Support Specialist attends Stay and Play events, developing relationships with families and learning about their needs. The Community Support Specialist can then make referrals to community resources such as Agenda Item No. 3
File Code No. 570.04
Council Agenda Report
Agreement Between the Library Department and Family Service Agency of Santa Barbara for Community Support Services [Agreement]
October 24, 2023

Unity Shoppe for basic needs and provide assistance with paperwork for preschool enrollment.

In addition to direct service in the Library, the Community Support Specialist also completed Homelessness Management Information System (HMIS) training to be able to view individuals in the system and their case worker details, if any, as well as update individuals as document ready. The position is also working with partnering agencies and attending SB ACT Regional Action Plan (RAP) neighborhood walks downtown and on the Eastside alongside contracted outreach workers, City staff, and elected officials.

Family Service Agency divides one-to-one sessions into three categories reflecting the intensity and complexity of the case: Tier 1: Information and Referral; Tier 2: Referral and Linkage; Tier 3: Case Management. From October 2022 through June 2023, the Community Support Specialist supported 76 families with 146 sessions and 337 adults (with no children under 18) with 447 sessions at the Tier 1 level. Additionally, 13 sessions at the Tier 2 level supported eight families and three adults. No case management services were offered.

Additionally, the Library was able to help with emergency needs due to the storm and flooding in early 2023. The Community Support Specialist was able to navigate Federal Emergency Management Agency (FEMA) applications and assisted 20 individuals seeking assistance. This made response and recovery efforts more efficient and effective for the City, since the Library had an existing mechanism for making appointments for assistance and the staff to support it.

Overall, the Community Support Specialist position as part of the City’s pilot program for addressing the social service needs of both vulnerable and housing-insecure families as well as unhoused individuals who frequent the Library has been successful. Library staff at all levels are better informed of resources, can focus more on Library-related patron needs, and refer more complex social service needs to the Community Support Specialist. The position complements the City’s other efforts to address housing insecurity and homelessness through contracted street outreach with City Net and the coordination and collaboration provided through SB ACT and the ACT on Homelessness Collaborative.

This Agreement is to renew the City’s contract with Family Service Agency of Santa Barbara to continue providing these services at the Library in FY24.

BUDGET/FINANCIAL INFORMATION:

The total cost for an annual contract with Family Service Agency of Santa Barbara is $126,833. There is sufficient Fiscal Year 2024 expenditure budget for the agreement.

A copy of the contract/agreement may be requested from the Library for public review; please email [email protected] to request a copy.

Council Agenda Report
Agreement Between the Library Department and Family Service Agency of Santa Barbara for Community Support Services [Agreement]
October 24, 2023

PREPARED BY: Molly Wetta, Library Services Manager
SUBMITTED BY: Jessica Cadiente, Library Director
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Internal Operations, Police Department
SUBJECT: Increase in Professional Service Agreement with CIO Solutions, Limited Partnership, For Network Administration Services [Agreement] RECOMMENDATION:

That Council authorize an increase in the professional service agreement with CIO Solutions, Limited Partnership (CIO Solutions), for Network Administration services, in the amount of $60,000, for a total not to exceed amount of $95,000.

DISCUSSION:

In May 2023, the Police Department's Network Administrator retired after 40 years of service. As part of the preparation for their retirement, the Department hired CIO Solutions to provide network administration assistance during the transition period and the recruitment process. The Department anticipated that the recruitment process would take two to three months and entered into a professional service agreement with CIO Solutions for $35,000.

While there is now an applicant in the background process for the position, additional services are needed until the applicant begins onboarding.

As a qualified service provider, CIO Solutions staff were required to pass a CJIS level background and possess a SOC 2 Compliance certification by being audited for their organization's controls based on security, availability, processing integrity, confidentiality, and privacy. iMoreover, in a significant service outage, CIO Solutions staff must physically respond to the Department's data center within 15 minutes of notification of the outage.

This professional service agreement for network administration services would allow for an additional $60,000 of services for a new total value not to exceed $95,000.

Agenda Item No. 4
File Code No. 520.04
Council Agenda Report
Increase in Professional Service Agreement with CIO Solutions, Limited Partnership, For Network Administration Services [Agreement]
October 24, 2023

BUDGET/FINANCIAL INFORMATION:

There are funds available in the Fiscal Year 2023 Police Department equipment budget for this purchase.

A copy of the agreement may be requested from the Police Department for public review by emailing [email protected] .

PREPARED BY: Lori Pedersen, Administrative Manager
SUBMITTED BY: Kelly Gordon, Chief of Police
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Field Operations, Police Department
SUBJECT: Professional Services Agreement with Crossroads Software, Inc. for Electronic Traffic Citation Software Services (eCitation) [Agreement] RECOMMENDATION:

That Council approve a professional service agreement with Crossroads Software, Inc. for the purchase of electronic traffic citation issuance software services (eCitation) in the amount of $39,500.

DISCUSSION:

As a primary function, the Santa Barbara Police Department (SBPD) issues a variety of citations for violations of the law. Currently, all traffic citations are written on paper forms and are manually processed by SBPD Records Bureau staff. The manual entry can be time-consuming. Additionally, any changes the law may require the reprinting of these forms and the disposal of unused forms.

State statutory requirements necessitate the redesign of existing citation forms to increase readability. Due to these new requirements, the current paper citations would need to be updated and re-ordered. Consequently, the SBPD is recommending replacing the hard copy process with the more efficient electronic citations.

Crossroads Software Inc. is a reputable distributer of “eCitation” electronic citation software. The use of “eCitation” software is beneficial in many ways including the following: increasing the speed at which citations can be entered/printed; decreasing error rates through automation; providing field validation to ensure completeness; and providing expanded data tracking and analytics. The SBPD already uses related Crossroads software for electronic traffic collision reporting. The addition of “eCitation” software would serve to expedite the overall citation process, improving workflow for our personnel, greater flexibility for changes in laws, and providing a more efficient service to the public.

Agenda Item No. 5
File Code No. 520.04
Council Agenda Report
Professional Services Agreement with Crossroads Software, Inc. for Electronic Traffic Citation Software Services (eCitation) [Agreement]
October 24, 2023

This professional service agreement for software services with Crossroads Software, Inc. is for $39,500.

BUDGET/FINANCIAL INFORMATION:

There are funds available in the Fiscal Year 2023 Police Department equipment budget for this purchase.

A copy of the agreement may be requested from the Police Department for public review by emailing [email protected] .

PREPARED BY: Charles Katsapis, Commander
SUBMITTED BY: Kelly Gordon, Chief of Police
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Chief’s Staff, Police Department
Information Technology Department
SUBJECT: Purchase of Motorola Solutions, Inc. Radio Equipment RECOMMENDATION:

That Council authorize a purchase order in the amount of $1,834,205 for the purchase of radio equipment, accessories, and accompanying licenses from Motorola Solutions, Inc.

DISCUSSION:

The Police and Information Technology Departments are replacing outdated portable and mobile radios used by sworn and non-sworn field personnel. This replacement is required to comply with the communications encryption specifications detailed by the Department of Justice’s (DOJ) October 2020 radio communications encryption requirements. Per the requirement, all CLETS (California Law Enforcement Telecommunications System) subscribing agencies must use encrypted radio channels to transmit confidential criminal justice information and personally identifiable information. A workaround was developed until the radio infrastructure and equipment can be upgraded. As a CLETS subscribing agency, the Police Department’s current radio equipment is not encrypted and does not currently comply with the DOJ’s requirements; warranting the purchase of radio equipment that satisfies these specifications.

The Departments would be procuring the identified radio equipment under the cooperative terms, conditions, and pricing of the established County of Los Angeles Agreement # MA-IS-2240882-1 with Motorola Solutions, Inc; valid July 1, 2022, through June 30, 2025. Section 35 of the agreement allows other municipalities, such as the City, to participate in the agreement under the same terms, conditions, and pricing as the County of Los Angeles. This agreement was awarded based on the resultant award being made to the lowest, responsible bidder that fully met and complied with all of the specifications and requirements of the solicitation. To participate in the agreement, the City must request a quote from Motorola Solutions, Inc. and issue a purchase order for Agenda Item No. 6
File Code No. 520.04
Council Agenda Report
Purchase of Motorola Solutions, Inc. Radio Equipment
October 24, 2023

the selected equipment. The radio communications equipment available under this agreement satisfies DOJ encryption standards.

The City of Santa Barbara would be procuring radio equipment under the terms and conditions of the County of Los Angeles Agreement # MA-IS-2240882-1; valid July 1, 2022, through June 30, 2025, with a second-quarter customer loyalty discount incentive of 50% off portables, 37% off mobile radios and 25% off accessories. Accessories include batteries, chargers, and a radio speaker mic. This is a significant cost savings for the city with the Motorola Discount. Delaying the decision will increase the price due to the sunset of the discount currently available.

The new APX radios are all P25 TDMA Digital compliant, which will allow us to operate on Analog Conventional, Digital, or encrypted trunked radio system. The new radios also include the AES encryption required by the Department of Justice. Each radio is equipped with frequency bands that will allow interoperable communications with other firstresponders, which enhances public safety. Included in the agreement is seven (7) years of maintenance on both the portable radios and police fleet radios.

To upgrade to current industry standards with improved public safety interoperability and to be compliant with the DOJ, the Departments plan to upgrade officer/non-sworn field personnel handheld portable radios to the Motorola APX8000 and upgrade fleet vehicle mobile radios to the Motorola APX8500.

BUDGET/FINANCIAL INFORMATION:

There are funds available in the Fiscal Year 2024 Police and Information Technology Department budgets to support this purchase.

PREPARED BY: Kelly Gordon, Chief of Police
SUBMITTED BY: Kelly Gordon, Chief of Police
Justin Cure, Information Technology Director
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: City Attorney’s Office
SUBJECT: Exception to the 180-Day Waiting Period to Hire a CalPERS Retired Annuitant in Accordance with Government Code Sections 7522.56 and 21224 [Resolution]
RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution Approving Exception to the 180- day Waiting Period to Hire a CalPERs Retired Annuitant in Accordance with Government Code Sections 7522.56 and 21224.

BACKGROUND:

In 2012, the Public Employees’ Pension Reform Act of 2013 (PEPRA) was passed and went into effect January 1, 2013. One of the provisions of PEPRA governs post-retirement employment for retirees. Specifically, all CalPERS retirees working in any capacity for CalPERS employers are subject to the following requirements:
 A 180-day wait period between the retirement date and the date employment begins, unless an exception applied;
 The work is of limited duration in a retired annuitant-designated position (not a permanent part-time position);
 The time worked is 960 hours or less in a fiscal year;  The compensation paid is an hourly pay rate that is within the salary schedule for the equivalent position performing comparable duties;
 No additional compensation or benefits are paid.

Retirees are generally prohibited from being employed in any capacity by a CalPERS covered employer for a period of 180 days following the date of retirement. However, there are exceptions to the 180-day wait period. One exception allows an employer to employ a recent retiree before the expiration of the 180-day wait period if the governing Agenda Item No. 7
File Code No. 430.08
Council Agenda Report
Exception to the 180-Day Waiting Period to Hire a CalPERS Retired Annuitant in Accordance with Government Code Sections 7522.56 and 21224 [Resolution] October 24, 2023

body certifies through the adoption of a resolution that the appointment is necessary to fill a critical need.

The attached resolution authorizes the City Council to make the required findings to allow Daniel Hentschke to fill a critically needed role in the City Attorney’s Office on major projects upon his retirement on December 26, 2023. Mr. Hentschke will continue to act in the capacity of an Assistant City Attorney V. The Assistant City Attorney V is paid at $119.7396 per hour for up to 960 hours in a fiscal year, as directed by the City Attorney.

The pay rate is commensurate with his current step of the full-time classification of an Assistant City Attorney V.

DISCUSSION:

On December 26, 2023, Mr. Hentschke will separate from full time City employment from the City of Santa Barbara. Mr. Hentschke retires after more than six years of exemplary public service with the City and over 40 years of service in public law. He has invaluable knowledge and experience in all facets municipal law and has been lead counsel on significant ongoing projects in the City that include the following: Continuing State Street closure and related issues, Charles E. Myers Desal plant operations, Paseo Nuevo redevelopment, Police Station building construction and financing.

To avoid interruption and delay for legal services on these major projects, the City Attorney’s Office requests that the Council adopt the proposed Resolution and waive the CalPERS 180-day wait period pursuant to Government Code Sections 7522.56 and 21224. Moreover, this waiver will help save the City a significant amount of money as the alternative would be to hire an outside law firm to provide the community with this high level of municipal law services for these important projects.

As required under Government Code Sections 7522.56 and 21224, Mr. Hentschke will be paid similar to other employees performing comparable duties. His hours will not exceed 960 hours in a fiscal year, and no other benefits will be provided.

BUDGET/FINANCIAL INFORMATION:

Sufficient funds are available in the City Attorney’s current budget to finance the proposed appointment.

PREPARED BY: John Doimas, Assistant City Attorney
SUBMITTED BY: Sarah Knecht, City Attorney
APPROVED BY: City Administrator's Office
1 RESOLUTION NO. ____
A RESOLUTION APPROVING EXCEPTION TO THE 180-

DAY WAITING PERIOD TO HIRE A CALPERS RETIRED

ANNUITANT IN ACCORDANCE WITH GOVERNMENT
CODE SECTIONS 7522.56 AND 21224
WHEREAS, in compliance with Government (Gov.) Code Section 7522.56 of the Public Employees’ Retirement Law, the City Council of the City of Santa Barbara must provide CalPERS with this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and
WHEREAS, Daniel Hentschke (Employee) will retire from the City of Santa Barbara City Attorney’s Office, as an Assistant City Attorney V, effective December 26, 2023; and
WHEREAS, Gov. Code Section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is June 23, 2024, without this certification; and
WHERAS, Gov. Code Section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the City desires to appoint Employee as an extra help retired annuitant to perform special projects, such as the Continuing State Street closure and related issues, Charles E. Myers Desal plant operations, Paseo Nuevo redevelopment, and Police Station building construction and financing, on a temporary and non-permanent basis; and
WHEREAS, the City has determined that Employee is specially trained, experienced, competent and possesses the requisite specialized skills, training, and certifications necessary to perform such special projects; and WHEREAS, Employee certifies that he is above normal retirement formula age and has not received an early retirement incentive; and WHEREAS, the City of Santa Barbara hereby ratifies the appointment of Employee as an extra-help retired annuitant to perform similar duties as an Assistant City Attorney V, for the City of Santa Barbara under Government Code Section 21224, effective January 8, 2024; and
2 WHEREAS, the entire employment agreement, contract or appointment document between Employee and the City of Santa Barbara has been reviewed by this body and is attached hereto; and
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; and WHEREAS, the employment authorized by this Resolution shall be limited to 960 hours per fiscal year; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the current maximum base monthly salary for the Assistant City Attorney V is $20,754.87 and the hourly equivalent is $119.7396, and the minimum base monthly salary for this position is $17,075.02 and the hourly equivalent is $98.5097; and WHEREAS, the hourly rate paid to Employee will be $119.7396, or the maximum hourly equivalent for the Assistant City Attorney V position as established by the compensation plan adopted by the City Council; and
WHEREAS, Employee has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate.

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

1. The City Council hereby certifies and ratifies the nature of the appointment of Daniel Hentschke as described herein and detailed in the attached employment agreement, and that this appointment was necessary to fill a critical need for the City of Santa Barbara due to his expertise and knowledge in providing legal services for major City projects that include the Continuing State Street closure and related issues, Charles E. Myers Desal plant operations, Paseo Nuevo redevelopment, and Police Station building construction and financing, and other special projects of a limited nature and duration as determined necessary by the City Attorney.

Attachment: Employment Agreement

ATTACHMENT TO RESOLUTION
1 EMPLOYMENT AGREEMENT
For

RETIRED ANNUITANT TO PROVIDE LEGAL SERVICES FOR SPECIAL PROJECTS TO THE CITY ATTORNEY’S OFFICE
This Employment Agreement (“Agreement”) is made and entered into this 24th day of October 2023, by and between the City of Santa Barbara, a California municipal corporaƟon (“CITY”), and Daniel S.

Hentschke (“HENTSCHKE”) on the following terms and condiƟons:

RECITALS
A. CITY desires to employ the temporary services of HENTSCHKE, commencing on January 2, 2024, as a reƟred annuitant to provide special assistance to the City Ʃorney, in providing legal services related to the ConƟnuing State Street Closure, the Charles E. Myers Desal plant operaƟons, the Paseo Nuevo redevelopment, the Police StaƟon building construcƟon and Įnancing, and other special projects of a limited nature and duraƟon as determined necessary by the City AƩorney, subject to the terms, condiƟons, and beneĮts set forth in this Agreement.

B. CITY has an immediate and temporary need for employee to provided uninterrupted legal services for the City on the criƟcally essenƟal projects referenced above.

C. HENTSCHKE will be a reƟred annuitant and receiving a beneĮt from the California Public Employees’ ReƟrement System (“CalPERS”) within the meaning of Government Code §§ 7522.56 and 21224 as of December 26, 2023. Once a reƟred annuitant, HENTSCHKE acknowledges that he is restricted to working no more than a combined 960 hours for CITY, a state agency, or other CalPERS contracƟng agencies (collecƟvely “CalPERS Agencies”) during CITY’s 2023-2024 and 2024-2025 Įscal years, or for any addiƟonal or subsequentĮscal year, and that his compensaƟon is statutorily limited as provided in Government Code §§ 7522.56(d) and 21224. HENTSCHKE represents that he has not received any unemployment compensaƟon from any CalPERS Agencies during the 12-month period preceding the ĞīecƟve date of this Agreement. HENTSCHKE further represents his CalPERS reƟrement date will become ĞīecƟve prior to the 180-day period preceding the eīecƟve date of this Agreement; that he has not received a reƟrement incenƟve upon reƟrement within the meaning of Government Code § 7522.56(g), and that he has aƩained normal reƟrement age within the meaning of Government Code § 21220.5.

D. CITY has determined that it is necessary to hire HENTSCHKE, as a reƟred annuitant, to avoid the interrupƟon of legal skills to projects for which HENTSCHKE has the special skills and knowledge that is required.

In consideraƟon of the promises and covenants contained herein, the parƟes agree as follows:

1. PosiƟon and DuƟes.

1.1 PosiƟon. HENTSCHKE accepts employment with CITY as a reƟred annuitant to provide special assistance to the City AƩorney’s Kĸce with special projects such as the ConƟnuing State Street Closure, the Charles E. Myers Desal plant operaƟons, the Paseo Nuevo redevelopment, the Police StaƟon

ATTACHMENT TO RESOLUTION
2 building construcƟon and Įnancing and other special projects of a limited nature and duraƟon as determined necessary by the City AƩorney. HENTSCHKE shall report directly to the City AƩorney.

1.2 Term. This Agreement shall not be eīecƟve and operaƟve unƟl the following occurs: a) it is approved by Council on October 24, 2023, and then executed by the parƟes and b) upon HENTSCHKE’s reƟrement on December 26, 2023. If HENTSCHKE withdraws his reƟrement, this Agreement becomes void.

1.3 At-Will. HENTSCHKE acknowledges that as of January 2, 2024, he will be an at-will, temporary reƟred annuitant employee of CITY who shall serve at the pleasure of CITY at all Ɵmes during the period of his service under this Agreement and that his employment may be terminated at any Ɵme and for any or no reason with or without cause or by operaƟon of California or federal law. Nothing in this Agreement is intended to, or does, confer upon HENTSCHKE any right to any property interest in conƟnued employment, or any due process right to a hearing before or aŌer a decision by CITY to terminate his employment.

1.4 Hours of Work. HENTSCHKE shall devote the Ɵme necessary to adequately perform his duƟes as a temporary reƟred annuitant providing legal services to the assigned special projects given by the City AƩorney. Toward that end, HENTSCHKE shall be allowed Ňexibility in seƫng his own hours.

1.5 Other AcƟvity. In accordance with Government Code SecƟon 1126, during the period of his employment, HENTSCHKE shall not accept, without the express prior wriƩen consent of City Council, any other employment or engage, directly or indirectly, in any other business, commercial, or professional acƟvity, whether or not to pecuniary advantage, that is or may be compeƟƟve with CITY, that might cause a conŇict-of-interest with CITY, or that otherwise might interfere with the business or operaƟon of CITY.

1.6 Reasonable Reimbursement of Expenses. In accordance with City policy and pracƟce, HENTSCHKE may submit, and receive reimbursement for necessary and reasonable expenses that he incurs in connecƟon with his employment as a reƟred annuitant. The Agreement also provides authorizaƟon to send HENTSCHKE to any trainings that would assist in his work for the beneĮt of CITY.

HENTSCHKE will be paid for the hours of aƩendance and reimbursed expenses.

2. CompensaƟon.

2.1 Rate of Pay. For all services performed by HENTSCHKE under this Agreement, CITY shall pay HENTSCHKE compensaƟon at the rate of $119.7396 per hour, to be paid according to the payroll schedule in place for City employees and the hourly rate is subject to change predicated upon any salary increases to the classŝĮcaƟon of Assistant City AƩorney V.

2.2 Compliance with CalPERS Requirements. It is the intent of the parƟes to compensate HENTSCHKE only to the extent permiƩed under Government Code §§ 21224 and 7522.56(d) and corresponding CalPERS regulaƟons and policy statements. The parƟes acknowledge and agree that the rate of pay set forth above neither exceeds nor falls below the salary limitaƟons established by CalPERS based on the rates set forth in CITY’s publicly available salary schedule for an Assistant City AƩorney V.

2.2.1 Recording and ReporƟng of Hours Worked. HENTSCHKE will comply with all applicable CalPERS regulaƟons governing employment aŌer reƟrement including the recording and reporƟng of all hours worked for CITY to CalPERS as may be required. CITY shall assist in any such reporƟng

ATTACHMENT TO RESOLUTION
3 obligaƟons to CalPERS. AddiƟonally, HENTSCHKE shall keep CITY conƟnually apprised of any hours worked by HENTSCHKE for other CalPERS Agencies during the term of this Agreement.

3. BeneĮts.

Pursuant to Government Code §21224 and related CalPERS regulaƟons and policy statements, HENTSCHKE shall not receive from CITY any beneĮts CITY commonly provides to its employees including, without limitaƟon, health, dental, or vision insurance coverage, life insurance, employee assistance programs, and similar beneĮts.

4. VacaƟon and Leave.

HENTSCHKE and CITY agree that HENTSCHKE in accordance with Government Code §21224 and related CalPERS regulaƟons and policy statements, shall not be provided or accrue any personal Ɵme, vacaƟon, sick leave, administraƟve leave, paid holidays or similar paid leave beneĮts.

5. Ʃorney Client Work Product.

Any work and communicaƟon to City employees involving work assigned to HENTSCHKE shall be covered under the ĂƩorney client work product and communicaƟon privilege. HENTSCHKE’s obligaƟons under this SecƟon shall survive the expiraƟon of this Agreement.

6. ConŇict Of Interest.

HENTSCHKE represents and warrants to CITY that he presently has no interest, and represents that he will not acquire any interest, direct or indirect, Įnancial, or otherwise, which would conŇict in any manner or interfere in any way with performance of his services under this Agreement. HENTSCHKE will Įle a Form 700 and comply with the requirements of the City’s Local ConŇict of Interest Code in the same manner as persons serving in the full-Ɵme capacity as Assistant City AƩorney V.

7. IntegraƟon.

This Agreement is intended to be the Įnal, complete, and exclusive statement of the terms of HENTSCHKE’s employment by CITY. This Agreement may not be amended except in a wriƩen document signed by HENTSCHKE and approved by the City Council and signed by the City Ʃorney.

8. Assignment.

HENTSCHKE shall not assign any rights or obligaƟons under this Agreement.

9. Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of California, and any acƟon in connecƟon with or arising out of this Agreement or any dispute between the parƟes shall be commenced and maintained in the Superior Court of the State of California for the County of Santa Barbara or the United States District Court for the Southern District of California.

10. InterpretaƟon.

This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitaƟon, this Agreement shall not be construed in favor

ATTACHMENT TO RESOLUTION
4 of the party receiving a beneĮt nor against the party responsible for any parƟcular language in this Agreement. CapƟons are used for reference purposes only and should be ignored in the interpretaƟon of the Agreement. This Agreement may be altered, amended or modiĮed only by an instrument in wriƟng, executed by the parƟes to this Agreement and by no other means. Each party waives their future right to claim, contest or assert that this Agreement was modiĮed, cancelled superseded or changed by any oral agreement, course of conduct, waiver or estoppel.

11. Acknowledgment.

HENTSCHKE acknowledges that he has had the opportunity to consult legal counsel regarding this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal eīect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representaƟons or promises other than those contained in this Agreement.

IN WITNESS WHEREOF, CITY has caused this Agreement to be signed and executed as of the date set forth above.

APPROVED AND AUTHORIZED:
___________________________
Sarah Knecht, City AƩorney

APPROVED AS TO FORM
John Doimas, Assistant City AƩorney
ACCEPTED AND AGREED TO:
__________________________
Daniel S. Hentschke

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Capital Program Procurement Update and Need for Recommended Ballot Measure to Amend City Charter Enabling Additional Procurement Options
RECOMMENDATION: That Council:

A. Receive a report from staff on current capital program procurement limitations and opportunities for improved project delivery through additional procurement methods; and
B. Direct staff to initiate procedural steps to place a ballot measure on the March 5, 2024, Presidential Primary Election.

DISCUSSION:

Background
The Charter of the City of Santa Barbara (Charter) limits the procurement of contracts for construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks, playgrounds, Harbor facilities, and Airport facilities (public works contracts), excepting maintenance and repair. With limited exceptions for certain water resources contracts, the Charter exclusively limits the award of public works contracts to the lowest responsive, responsible bidder following a public notice in a newspaper of general circulation. This procurement method involves the contractual separation of design and construction services and was the backbone of public works construction contract procurement used by public agencies for most of the last century.

Over many decades, this low-bid procurement method provided taxpayers with adequate, safe, and efficient public infrastructure at the lowest price that responsible, competitive bidders can offer. For the most part, it resulted in a reasonable degree of quality and effectively prevented favoritism in spending public funds while stimulating competition.

However, this process can foster adversarial relationships with contractors, restrict innovation, and result in high project cost and time growth. Increasingly, this process does not provide the best value to the contracting agency.

Agenda Item No. 8
File Code No. 110.03
Council Agenda Report
Capital Program Procurement Update and Need for Recommended Ballot Measure to Amend City Charter Enabling Additional Procurement Options October 24, 2023

Public contracting is a municipal affair and charter cities have broad constitutional authority to establish contracting procedures subject only to the limitations of their respective charters. Most charter cities in California now have adopted alternative procurement methods that promote improved efficiency and quality. The California Legislature has also established alternative procurement methods for other local and state agencies. These alternative procurement methods, when applied appropriately, better meet the needs of the agency, result in a fair and reasonable price, and incentivize on-time and effective performance. The result is a product that is superior in value to the agency. The City of Santa Barbara (City) cannot currently take advantage of these contracting methods because of the language of Charter Section 519.

The shift to alternative procurement methods, first by the private sector and more recently by most public agencies, has resulted in a dramatic decline in the pool of interested toptier contractors for low-bid contracts. Interest in construction work in the City is further limited due to geographic constraints and the availability of local labor. The combined effects of these factors have often left recent City projects with fewer than three bidders and in some cases no bidders at all.

With little competition, the bid prices for City projects have frequently come in at 15% or more above the engineer’s estimate. In many cases the low-bid contractor, while technically responsible, is minimally qualified and/or experienced with the type of work.

In cases where a low bid comes in at or below the engineer’s estimate, the contractor is often unfamiliar with the unique logistic and labor realities of doing work in the City. The all-too-common result is poor quality work, lack of adherence to schedule, and unsatisfactory work site cleanliness, as the low-bid method does not incentivize high-level performance in these areas. These issues all lead to excessive City staff and consultant overhead to manage the contract and a higher risk of claims and/or legal action including default.

Additional Procurement Methods
In addition to low-bid contracting, there are other procurement methods that are now widely adopted for use by many public agencies. Some of the most used procurement methods along with the benefits are described below.

Method Contract(s) Applicability
Low-Bid*
Standard civil construction work with
few unknowns (e.g., pavement
maintenance)
Best-Value
Separate design services and
construction contracts
(Design-bid-build)
Most effective to select contractors
for projects with complex design,
delivery, and/or installation
requirements (e.g., specialized work
at City facilities)
Council Agenda Report
Capital Program Procurement Update and Need for Recommended Ballot Measure to Amend City Charter Enabling Additional Procurement Options October 24, 2023

Design-Build
Single contract covering both
the design services and
construction of a project
Complex projects that must follow
an expedited timeline and require
frequent collaboration between
design entity and contractor (e.g.,
Desal Plant reactivation)
Construction
Manager At
Risk
Negotiated contract with
construction manager during
design phase with guaranteed
maximum price
Very large complex construction
projects with need for price
guarantee (e.g., large building
construction)
*Only option currently allowed by City Charter
In addition to the procurement methods summarized in the table, staff recommends additional provisions for direct negotiation of small value contracts (<$75k) and a process for establishing, through simplified bidding, a list of qualified contractors who may be chosen to perform work with an estimated value between $75,000 and $500,000.

Provision for the use of these additional competitive procurement methods would put the City on par with many local agencies and provide staff with improved options to deliver quality projects with efficiency.

Proposed Charter Amendment
A modification to the Charter is required to allow for expanded use of procurement methods beyond low bidding. Any modification to the Charter requires a ballot measure.

It is recommended that Council direct staff to initiate the procedural steps necessary to place a ballot measure on the March 5, 2024, Presidential Primary Election. If Council directs staff to proceed, staff will return to Council within the next couple of weeks with proposed ballot measure language and a resolution directing the City Clerk and City Attorney to prepare all necessary actions and documents to place a measure before the voters in the March 5, 2024, Presidential Primary Election.

The Charter Amendment would provide the Public Works Director with the flexibility to use different procurement methods as appropriate for the work to be accomplished. The specific procurement methods permitted will be codified in the City’s Municipal Code through ordinance adopted by the City Council.

BUDGET/FINANCIAL INFORMATION:

The expansion of allowable procurement methods via an amendment to the Charter has the potential for significant cost savings and/or improved quality for the construction of public works projects.

Placing the ballot measure on the Presidential Primary Election will require some onetime costs to the City. These costs include an estimate of $134,000 that must be paid to the County Elections office to run the special election, which is not currently budgeted in Council Agenda Report
Capital Program Procurement Update and Need for Recommended Ballot Measure to Amend City Charter Enabling Additional Procurement Options October 24, 2023

the City’s Fiscal Year (FY) 2024 adopted budget. Additional City costs would be mostly limited to already budgeted staff time for establishing the ballot measure and development of the implementation ordinance.

SUSTAINABILITY IMPACT:

There are no relevant sustainability impacts related to the recommendations.

ENVIRONMENTAL REVIEW:

The recommendation action does not constitute a Project under California Environmental Quality Act (CEQA) Guidelines. Every individual project, regardless of procurement method, will undergo environmental review to ensure CEQA compliance.

PREPARED BY: Daniel S. Hentschke, Assistant City Attorney Brian D’Amour, PE, City Engineer
SUBMITTED BY: Clifford M. Maurer P.E., Public Works Director APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: City Clerk’s Office, City Administrator’s Office
SUBJECT: Interviews for City Advisory Groups
RECOMMENDATION: That Council:

A. Hold interviews of applicants to various City Advisory Groups (Est. time 4:00 p.m.); and
B. Continue interviews of applicants to October 31, 2023 (Est. time 4:00 p.m.) and November 7, 2023 (Est. time 6:00 p.m.).

DISCUSSION:

Interviews of applicants for various positions on City Advisory Groups are to be held on October 24, 2023, at an estimated time of 4:00 p.m. Applicants will also have the option to be interviewed on October 31, 2023, at an estimated time of 4:00 p.m., and on November 7, 2023 at an estimated time of 6:00 p.m.

There are currently 66 vacancies. A list of eligible applicants and pertinent information about the City Advisory Groups is attached. Applicants have been notified that to be considered for appointment they must be interviewed. Applicants have been requested to prepare a two to three minute verbal presentation in response to a set of questions. Those questions are specific to the group for which they are applying. Applicants applying to more than one advisory group may have up to five minutes for their presentation.

Appointments are scheduled to take place on December 5, 2023.

ATTACHMENT: List of Applicants
PREPARED BY: Niko Lopez, Deputy City Clerk
SUBMITTED BY: Sarah Gorman, MMC, City Clerk Services Manager APPROVED BY: City Administrator's Office
Agenda Item No. 9
File Code No. 140.05

ATTACHMENT
1 Annual Recruitment 2023

ACCESS ADVISORY COMMITTEE
 Four vacancies.
 Term Expirations:
 Disability Community: December 31, 2027
 Qualifications/Category: Members shall be residents of the City during their terms in office. They shall have a demonstrated interest, experience, and commitment to issues pertaining to disability and access.  Two members from the Disability Community; and
 Two members from the Architectural/Engineering/Building Community.  Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Michael Rassler
12/8/2020
(3 years) - City resident
Disability Community (2)
Adelaida Ortega - City resident
James Marston
12/8/2015; 12/12/2017; 12/8/2020
(8 years) - City resident
Susanne Tejada
12/11/2018; 12/8/2020
(5 years) - City resident Architectural/Engineering/Buil ding Community (2)
Elizabeth Sorgman
- City resident
- Current member of Building & Fire
Code Board of Appeals
2 October 18, 2023

ARCHITECTURAL BOARD OF REVIEW
 Two vacancies.
 Term Expirations:
 December 31, 2027 – Licensed Architect
 Qualifications/Category: Either or both new appointees may be qualified electors of the County and must remain so during their terms on the Board. Members must be licensed architects, or possess professional experience in related fields, including but not limited to, landscape architecture, building design, structural engineering, or industrial design.
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Dennis Whelan
11/12/2019
(4 years) - County resident
Carolyn Adams - City resident
Licensed Architect –
City/County (2)
Andrew Petrovsky - City resident
3 October 18, 2023

ARTS ADVISORY COMMITTEE
 Two vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Category: Members may be residents of the South Coast area of Santa Barbara County. Members should be persons who demonstrate an interest in and commitment to cultural and arts activities.  Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Margie Yahyavi
12/09/2014; 12/8/2015; 11/12/2019
(9 years) - City resident
Teri Ball - County resident
Diane Mackenzie - City resident
Nicholas Ragheb - City resident
Sophia Rasura - City resident
George Yatchisin - City resident
City/County Resident (2)
Chryss Yost - City resident
BUILDING AND FIRE CODE BOARD OF APPEALS – no applicants CITIZENS’ OVERSIGHT COMMITTEE – no applicants
4 October 18, 2023

CIVIL SERVICE COMMISSION
 Three vacancies.
 Term Expirations:
 December 31, 2027
 Qualifications/Categories: Qualified elector of the City.  Appointee may not hold any full-time paid office or employment in City government, and for one year after ceasing to be a member, shall not be eligible for any salaried office or employment with the City.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Alan Kasehagen*
11/25/2003; 12/18/2007;
12/13/2011; 12/8/2015; 11/12/2019
(20 years)
- City resident
Qualified Elector of the City
(3)
Donna Lewis*
6/28/2005; 12/18/2007; 12/13/2011;
12/8/2015; 11/12/2019
(18 years)
- City resident
*Has confirmed that they are a Qualified elector of the City. 5 October 18, 2023

COMMUNITY DEVELOPMENT AND HUMAN SERVICES COMMITTEE
 Seven vacancies.
 Term Expirations:
 December 31, 2024 (Downtown Area Neighborhood);
 June 30, 2026 (Business Community); and
 December 31, 2027 (Human Services Organization; Latino Community; Westside/Lower Westside Neighborhood; Youth Oriented Services Organization).
 Qualifications/Category: Members must be residents or employees of the designated organizations/neighborhoods, and be qualified electors of the County.
 Business Community;
 Downtown Area Neighborhood;
 Human Services Organization;
 Latino Community;
 Westside/Lower Westside Neighborhood; and
 Youth Oriented Services Organization
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Business Community (1)
Downtown Area Neighborhood
(1)
Human Services Organization
(1)
CONTINUED ON THE NEXT PAGE.
6 October 18, 2023
COMMUNITY DEVELOPMENT AND HUMAN SERVICES COMMITTEE (cont’d)  Seven vacancies.
 Term Expirations:
 December 31, 2024 (Downtown Area Neighborhood);
 June 30, 2026 (Business Community); and
 December 31, 2027 (Human Services Organization; Latino Community; Westside/Lower Westside Neighborhood; Youth Oriented Services Organization).
 Qualifications/Category: Members must be residents or employees of the designated organizations/neighborhoods, and be qualified electors of the County.
 Business Community;
 Downtown Area Neighborhood;
 Human Services Organization;
 Latino Community;
 Westside/Lower Westside Neighborhood; and
 Youth Oriented Services Organization
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Latino Community (1)
Westside/Lower Westside
Neighborhood (1)
Jenna Hamilton-Rolle** 11/12/2019
(4 years) - County resident
Youth Oriented Services
Organization (1)
**Has confirmed that they are a Qualified elector of the County. 7 October 18, 2023

COMMUNITY EVENTS AND FESTIVALS COMMITTEE
 Four vacancies.
 Term Expiration: December 31, 2026
 Qualifications/Category: Members must represent one of the following categories:
 Business/Lodging/Retail Industry; and
 Cultural Arts.
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)
APPLICANT Incumbent
Appt. Dates
(Years Served)
Notes
Antoinette Chartier 11/12/2019
(4 years) - County resident Business/Lodging/Retail
Industry (3) Terra Taylor - City resident
Cultural Arts (1)
8 October 18, 2023

CREEKS ADVISORY COMMITTEE
 Four vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Category: Up to two appointees may be non-City residents. Members must meet the following categories:
 Member from the Hotel/Lodging Industry; and
 Members with some experience in ocean use, business, environmental issues, and/or provide community at large representation.
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Hotel/Lodging Industry
Representative (1)
Chris Cline 12/7/2021
(2 years) - City resident
Stephanie Moore 6/27/2023
(6 months)
- City resident
- Environmental/Land Use/Ocean
Use Category
Lee Heller
12/7/2021
(2 years)
- City resident
- Environmental Land
Use/Business/Community Issues
Category
City/non-City Resident (3)
Wendy Wittl
- City resident
- At-large representation category
9 October 18, 2023

DOWNTOWN PARKING COMMITTEE
 Two vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Categories: Residents of the City or of the County. All members shall demonstrate an interest in, and knowledge of, downtown parking issues.
 Appointee may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
City/County Resident (2) Andrew Newkirk
6/26/2018; 11/12/2019
(5 years, 6 months) - City resident
10 October 18, 2023

HARBOR COMMISSION
 Two vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Categories: Qualified elector of the City; one member may be a qualified elector of the County.  Appointee may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Alexandra Benjamin* - City resident
Jaime Diamond - County resident
Merit McCrea* 6/28/2016; 11/12/2019
(7 years, 6 months) - City resident
Michael Nelson
11/12/2019
(4 years) - City resident
Jeff Escola - City resident
Conrad Metzenberg* - City resident
Amber Noelle - City resident
Qualified Elector of the
City/County (2)
Richard Smalldon - City resident
*Has confirmed that they are a Qualified elector of the City. 11 October 18, 2023

HISTORIC LANDMARKS COMMISSION
 One vacancy.
 Term Expiration: December 31, 2027
 Qualifications/Categories: All members shall have demonstrated interest in and knowledge of the history and architecture of the City. Appointee may be a qualified elector of the City or a non-City resident representing one of the following categories:
 Licensed Architect;
 Professional Architectural Historian;
 Licensed Landscape Architect; or
 Public at large.
 Appointee may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Sarah Boyajian - City resident
- Public at large category
Michael Drury
7/1/2008; 12/13/2011; 12/8/2015;
11/12/2019
(15 years, 5, months)
- City resident
- Public at large category
Stephanie Farmer - County resident
- Public at large category
Rebecca Heald - City resident
- Public at large category
Licensed Architect;
Professional Architectural
Historian; Licensed
Landscape Architect; or
Public at Large (1)
Sophia Rasura - City resident
- Public at large category
12 October 18, 2023

HOUSING AUTHORITY COMMISSION
 One vacancy.
 Term Expiration: August 6, 2027
 Qualifications/Category: Members should have some interest and background in housing development, management, or other comparable experience. Member may be a non-City resident representing the public at large.  Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
David Rowell
6/18/2019
(4 years, 6 months) - County resident
Public at Large (1)
Hannah Sullivan - County resident
13 October 18, 2023

LIBRARY BOARD
 One vacancy.
 Term Expiration: December 31, 2027
 Qualifications/Categories: Qualified elector of the City.  Appointee may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Leslie Dinaberg*
12/8/2020
(3 years) - City resident Qualified Elector of the City (1)
Brian Barnwell - City resident
*Has confirmed that they are a Qualified elector of the City.

LIVING WAGE ADVISORY COMMITTEE – no applicants
14 October 18, 2023

NEIGHBORHOOD ADVISORY COUNCIL
 Eight vacancies.
 Term Expirations:
 December 31, 2024 (Neighborhood Representative- 1; and Public at large- 1); and  December 31, 2027 (Neighborhood Representative- 6)
 Qualifications/Categories: Public at large representatives may reside anywhere within City limits. Neighborhood representatives must be residents of the following neighborhoods, and no more than three members can represent one specific neighborhood:
 Eastside (3 openings);
 Lower Eastside (3 openings);
 Laguna (3 openings);
 West Downtown (3 opening);
 Westside (3 opening);
 Lower Westside (2 opening); and
 Public at Large (2 openings).
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Neighborhood Representative
or Public at Large (8) Mickey Cornish - Laguna Neighborhood 15 October 18, 2023

PARKS AND RECREATION COMMISSION
 One vacancy.
 Term Expiration:
 June 30, 2024 (Youth Intern*); and
 December 31, 2027 (Qualified Elector)
 Qualifications/Categories: Members of the Commission must be qualified electors of the City.  *Youth Intern: One youth intern who is not a member of the Commission and is a high school student volunteer who resides within the Santa Barbara High School District or attends other high schools within the City limits and is nominated by the principal of the student’s high school. The student shall be either in their junior or senior year of high school and shall be and remain a student in good standing as is determined by the high school. A student that graduates shall not serve for more than three (3) months following graduation.  Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Youth Intern (1)
Qualified Elector of the City (1) Jacob Lesner-Buxton
6/28/2016; 11/12/2019
(7 years, 6 months) - City resident
16 October 18, 2023

PLANNING COMMISSION
 Two vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Categories: Qualified electors of the City.  Appointee may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Donald DeLuccio* 1/31/2023
(11 months) - City resident
Fred Sweeney - City resident
Rebecca Heald - City resident
Qualified Elector of the City
(2)
Sara Wylder - City resident
*Has confirmed that they are a Qualified elector of the City. 17 October 18, 2023

RENTAL HOUSING MEDIATION BOARD
 Nine vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Categories One appointee may be a non-City resident; remaining appointees must be City residents. Non-City residents must reside in a jurisdiction which contracts with the Rental Housing Mediation Program for services (currently Goleta and Carpinteria). All appointees must also meet one of the following qualifications:
 Landlord Mediator who owns or manages residential properties for consideration or compensation, whether single or multiple units;
 Tenant Mediator who rents or leases a dwelling with no ownership of residential properties; and  Homeowner Mediator who owns and resides in a single-family residence with no ownership of other residential properties.
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of
Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
John Beardsmore 6/28/2022
(1 years, 6 months)
Michelle Roberson 11/12/2019; 12/11/2018
(4 years)
Landlord Mediator
(4)
Teresa Patino 6/28/2022
(1 years, 6 months)
Marilyn Loperfido 11/12/2019
(4 years) Tenant Mediator (4)
Cathy Murillo
Leesa Beck
11/12/2019; 12/11/2012; 6/28/2011; Prior
Service (2007 – 2011)
(16 years) Homeowner
Mediator (1)
Bruce Wollenberg
18 October 18, 2023

SANTA BARBARA YOUTH COUNCIL
 Four vacancies.
 Term Expirations:
 June 30, 2024
 Qualifications/Categories: Members must be between the ages of 13-19 years. One appointee must be a resident of the City; the remaining appointees may be residents of the County. Appointees must also meet one of the following categories:
 One member must be a student attending a Local Private School or independent studies;  Two members from a local alternative, community, or continuation high school; or  One member representing the Public at Large.
 Note: All applicants also fit the category of Public at Large.  Applicants must appear for an interview before the Santa Barbara Youth Council and City Council.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Sophia Probstel - City resident
- Laguna Blanca student
Eloise Lowther-Phillips - County resident
- Laguna Blanca student
Local Private High
School/Independent Studies
(1)
Sindy Zavala - County resident
- Bishop Diego student
Local Alternative, Community,
or Continuation High School
(2)
Kaarlo Anderson - County resident; DPHS student
Evan Pinsker - County resident; DPHS student
Gabriele Scussat - County resident; DPHS student
Kavya Suresh - County resident; SMHS student
Alok Thakrar - County resident; DPHS student
Public at Large (1)
Parikshit Mehta - County resident; DPHS student
19 October 18, 2023

SISTER CITIES BOARD
 One vacancy.
 Term Expiration: December 31, 2024
 Qualifications/Category: Qualified elector of the City or County.  Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Qualified Elector of the
City/County (1) Taylor Terra - City resident
20 October 18, 2023

WATER COMMISSION
 Three vacancies.
 Term Expiration: December 31, 2027
 Qualifications/Category: Members must be qualified electors of the City; one member may be a qualified elector of the County.
 Appointees may not hold any full-time paid office or employment in City government.

CATEGORY
(Number of Vacancies)

APPLICANT
Incumbent
Appt. Dates
(Years Served)
Notes
Arturo Keller* 6/26/2018; 11/12/2019
(5 years, 6 months) - City resident Qualified Elector of the City/County (3)
Jeffrey Young 11/12/2019
(4 years, 1 month) - City resident
*Has confirmed that they are a Qualified elector of the City.

One applicant indicated they would be interested in any Advisory Group – Daiquiri Beebe –City Resident

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Conference with Labor Negotiator
RECOMMENDATION:

That Council hold a closed session pursuant to the authority of Government Code Section 54957.6 to consider instructions to City negotiator Wendy Levy, Human Resources Director, Sam Ramirez, Labor Relations Manager, Assistant City Attorney John Doimas, and Oliver Yee, Attorney with Liebert Cassidy Whitmore, regarding negotiations with, Service Employees’ International Union, Local 620, Treatment and Patrol Bargaining Units, Santa Barbara City Employees’ Association (General Bargaining Unit) Local 620 Service Employees’ International Union, Fire Management Association, Santa Barbara City Firefighters Association, Police Officers Association, Police Management Association, Santa Barbara City Supervisory Employees, and Unrepresented Management and Confidential Employees.

Scheduling: Duration, 45 Minutes; anytime
Report: None anticipated
PREPARED BY: Sam Ramirez, Labor Relations Manager
SUBMITTED BY: Sam Ramirez, Labor Relations Manager
APPROVED BY: City Administrator's Office
Agenda Item No. 10
File Code No. 440.05

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 24, 2023
TO: Mayor and Councilmembers
FROM: Human Resources Department
SUBJECT: Public Employment/Public Employee Appointment
RECOMMENDATION:

That Council hold a closed session, per Government Code Section 54957(b)(1), to discuss appointment for the position of Interim City Administrator and, if appropriate, make a decision regarding that appointment.

Scheduling: Duration: 30 minutes; anytime
Report: Report anticipated
PREPARED BY: Wendy Levy, Human Resources Director
SUBMITTED BY: Wendy Levy, Human Resources Director
APPROVED BY: Rebecca J. Bjork, City Administrator
Agenda Item No. 11
File Code No. 440.05