Agenda packet, first session — Santa Barbara City Council, December 5, 2023 (part 1 of 4)

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
DECEMBER 5, 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. 12/05/2023 Santa Barbara City Council Final Agenda Page 1 DECEMBER 5, 2023 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street (120.03)
Recommendation: That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement with Transition House in the Amount of $1,284,850 for Acquisition of the Real Property Located at 712 West Anapamu Street to Be Used for Transitional Housing, to Be Secured by a Deed of Trust and a 90-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements, subject to approval as to form by the City Attorney, as Necessary; B. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program (HOME) Fund in the amount of $759,487 to fund a portion of the requested property acquisition loan; and C. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program – American Rescue Plan (HOMEARP) Fund in the amount of $525,363 to fund the remaining requested property acquisition loan.

2. Subject: Resolution of Opposition to the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) (120.03)
Recommendation: That Finance Committee hear a report from staff and recommend that the City Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara in opposition to Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) scheduled for the November 2024 Ballot.
12/05/2023 Santa Barbara City Council Final Agenda Page 2

3. Subject: Increase the City Administrator’s Contracting Authority and Increase the Competitive Threshold for the Purchase of Goods and Services (120.03)
Recommendation: That Finance Committee recommends that Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the City Administrator to Bind the City for the Acquisition of Certain Items and Rescinding Resolution No. 14-065; and B. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending Santa Barbara Municipal Code Sections 4.52.060 and 4.52.070 to Update Monetary Thresholds and Adding Section 4.52.072 to Authorize Best Value Competitive Contracting for Goods and Services.

4. Subject: Fiscal Year 2024 First-Quarter Review (120.03) Recommendation: That Finance Committee:

A. Receive a report from staff on the status of revenues and expenditures in relation to the budget for the three months ending on September 30, 2023; B. Accept the Fiscal Year (FY) 2024 Interim Financial Statements for the three months ending on September 30, 2023; and
C. Recommend that Council approve proposed First Quarter (Q1) adjustments to FY2024 revenue and expenditure appropriations as detailed in the attached schedule of Proposed Q1 adjustments.

ORDINANCE COMMITTEE MEETING - 12:00 P.M. IN THE COUNCIL CHAMBER (120.03)

1. Subject: Tenant Protection Ordinance (120.03)
Recommendation: That Ordinance Committee consider and forward to City Council, for introduction and subsequent adoption, an Ordinance of the Council of the City of Santa Barbara amending the Santa Barbara Municipal Code by amending Sections 26.50.010, 26.50.040, 26.50.060, and 26.50.070 relating to Just Cause Eviction; by adding Section 26.50.055 to provide a Tenant Right of First Refusal to Re-rent following a No-Fault Just Cause Eviction; by adding Section 26.50.075 relating to Occupancy following a Substantial Remodel, and by adding Chapter 26.60 relating to Protection of Tenants from Harassment. 12/05/2023 Santa Barbara City Council Final Agenda Page 3 REGULAR CITY COUNCIL MEETING - 2:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CEREMONIAL ITEMS

1. Subject: Employee Recognition – Service Award Pins (120.04) Recommendation: That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through December 31, 2023.

CHANGES TO THE AGENDA

CONSENT CALENDAR

2. Subject: Minutes
Recommendation: That Council waive reading and approve the minutes for the regular meetings of July 18, 2023, September 26, 2023, October 3, 2023, and October 10, 2023.

3. Subject: Elimination of Average Unit-Size Density Incentive Program Expiration Date [Ordinance Adoption] (610.04)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending Santa Barbara Municipal Code Sections 30.20.030, 30.25.030, 30.30.30, 30.140.220, 30.150.010, 30.150.040, and 30.150.050 to Eliminate the Expiration Date from the Average Unit-Size Density Incentive Program.

4. Subject: Communication Facilities License Agreement with COX Business and SBA RAC Participants/DBA AvAirPros Services [Ordinance Adoption] (560.01)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Airport Director to Execute a Communication Facilities License Agreement with COX Business and SBA RAC Participants/DBA AvAirPros Services, Located at 25 David Love Place, Commencing Upon the Effective Date of the Enabling Ordinance. 12/05/2023 Santa Barbara City Council Final Agenda Page 4

5. Subject: Prohibiting Heavy Vehicles on Portions of Alisos Streets and Sola Street [Ordinance Introduction] (530.05)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Municipal Code by Amending Section 10.60.040 Pertaining to Prohibiting Heavy Vehicles on Portions of Alisos Street and Sola Street.

6. Subject: Lease Amendment with Captain’s Cove, LLC DBA The Anchor Rose Lounge, Located at 113 Harbor Way [Ordinance Introduction] (330.04) Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Waterfront Director to Execute the Amendment to Lease Agreement No. 28,360 with Captain’s Cove, LLC, Deferring Three Months Base Rent with Lease Terms Ending December 31, 2025, Commencing Upon the Effective Date of the Enabling Ordinance.

7. Subject: Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street [Ordinance Introduction] (660.04) Recommendation: That Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement with Transition House in the Amount of $1,284,850 for Acquisition of the Real Property Located at 712 West Anapamu Street to Be Used for Transitional Housing, to Be Secured by a Deed of Trust and a 90-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements, Subject to Approval as to Form by the City Attorney, as Necessary; B. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program (HOME) Fund in the amount of $759,487 to fund a portion of the requested property acquisition loan; and C. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program – American Rescue Plan (HOMEARP) Fund in the amount of $525,363 to fund the remaining requested property acquisition loan.
12/05/2023 Santa Barbara City Council Final Agenda Page 5

8. Subject: Introduction of Ordinance Approving the 2022-2025 Fire Management Association Bargaining Unit Memorandum of Understanding [Ordinance Introduction] (440.02)
Recommendation: That Council ratify the Memorandum of Understanding between the City of Santa Barbara and the Santa Barbara Fire Management Association Bargaining Unit, by introduction and subsequent adoption of, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Adopting the 2022- 2025 Memorandum of Understanding Between the City of Santa Barbara and the Santa Barbara Fire Management Association.

9. Subject: Introduction of Ordinance Approving the 2023-2025 Treatment Plants’ and Patrol Officers’ Memorandum of Understanding, and Amendment of Resolution No. 23-081, the Position and Salary Control Resolution for Fiscal Year 2024 [Ordinance Intro.; Resolution] (440.02) Recommendation: That Council:

A. Ratify the Memorandum of Understanding between the City and the Service Employees' International Union, Local 620, Airport and Harbor Patrol Officers' and Treatment Plants' Bargaining Units, for the period of October 1, 2023 through December 31, 2025, by introduction and subsequent adoption of, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Adopting the 2023-2025 Memorandum of Understanding Between the City of Santa Barbara and the Patrol Officers' and Treatment Plants' Bargaining Units (TAP UNITS); and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 23-081, the Position and Salary Control Resolution for Fiscal Year 2024, Affecting the Salaries of Certain Classifications in the Treatment and Patrol Bargaining Unit Effective December 2, 2023.

10. Subject: Waterfront Department Amendment to Resolution No. 23-079 Waterfront Harbor Slip, Mooring, and User Fees [Resolution] (570.03) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing the City Clerk to Correct Clerical Errors by Correcting a Fee in Resolution No. 23-079 Adopted on June 13, 2023, Which Became Effective on July 1, 2023, or as Provided Therein, and Amend the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges. 12/05/2023 Santa Barbara City Council Final Agenda Page 6

11. Subject: Community Project Funding Grant in the Amount of $1,500,000 for the Dwight Murphy Field Renovation Project [Resolution] (570.05) Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara, State of California, Authorizing the Parks and Recreation Director to Enter Into a Community Project Funding Grant Agreement in the Amount of $1,500,000 with the United States Department of Housing and Urban Development for the Dwight Murphy Renovation Project; and B. 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 the Parks and Recreation Department Fiscal Year 2024, to Appropriate United States Department of Housing and Urban Development Community Project Funds for the Dwight Murphy Renovation Project.

12. Subject: Grant Funding for CalRecycle Solid Waste Reduction Programs [Resolution] (630.02)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Sustainability and Resilience Director to Execute all Necessary Documents and Submit Grant Applications for all California Department of Resources Recycling and Recovery Grant Programs for Which the City is Eligible.
12/05/2023 Santa Barbara City Council Final Agenda Page 7

13. Subject: Contract Amendments for Design and Construction Support Services for the Central Library Renovation Project [Resolution; Agreement] (570.04)
Recommendation: That Council:

A. Authorize the Public Works Director to execute the Fourth Amendment to the City Professional Services Contract No. 26,298 with Arcadia Studio, Inc. in the amount of $76,800 for construction management and design services for a total contract amount of $341,796.22;
B. Authorize the Public Works Director to execute the Fourth Amendment to the City Professional Services Contract No. 26,177 with LMA Architects, Inc. in the amount of $37,655 for construction management services for a total contract amount of $241,861.83;
C. Authorize the Public Works Director to execute the Second Amendment to the City Professional Services Contract No. 21900123 with Bildsten Architecture and Planning, Inc. in the amount of $44,200 for construction management services for a total contract amount of $191,589; D. Authorize the Public Works Director to execute the Second Amendment to the City Professional Services Contract No. 22300162 with TynanGroup, LP in the amount of $93,000 for construction management services for a total contract amount of $268,625;
E. That Council authorize an increase in the Public Works Director’s Change Order Authority to approve expenditures for extra work for the Central Library Renovation Project with Nationwide Contracting Services Inc., Contract No. 28,050, in the amount of $250,000, for a total project expenditure authority of $10,576,525; and
F. 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 Appropriate Funds for the Construction of the Central Library Renovation Project.
12/05/2023 Santa Barbara City Council Final Agenda Page 8

14. Subject: Fiscal Year 2024 First-Quarter Review (230.04) Recommendation: That Council:

A. Receive a report from staff on the status of revenues and expenditures in relation to budget for the three months ending on September 30, 2023; B. Accept the Fiscal Year (FY) 2024 Interim Financial Statements for the three months ending on September 30, 2023; and
C. Approve proposed First Quarter (Q1) adjustments to FY2024 revenue and expenditure appropriations as detailed in the attached schedule of Proposed Q1 adjustments.

15. Subject: October 2023 Investment Report (260.02)
Recommendation: That Council accept the October 2023 Investment Report.

16. Subject: Three-Year Software License Agreement with OpenGov, Inc. for Budget Planning and Performance Measurement [Agreement] (210.01) Recommendation: That Council authorize the Finance Director to execute a threeyear software license agreement with OpenGov, Inc., for a total of $594,654, to continue with the Budget & Planning Suite module and performance measurement functionality to improve budget and performance management processes and transparency.

17. Subject: Independent Audit Agreement Extension [Agreement] (210.01) Recommendation: That Council approve and authorize the Finance Director to execute an extension of the existing Professional Services Agreement for three years with CliftonLarsonAllen LLP (CLA) to perform an independent audit of the City of Santa Barbara for fiscal years ending June 30, 2024, June 30, 2025, and June 30, 2026 in the amount of $306,711.

18. Subject: Interim City Administrator Employment Agreement and Amended City Attorney Employment Agreement [Agreement] (170.01) Recommendation: That Council approve and authorize the Mayor to execute an agreement with Sarah Knecht to serve as the Interim City Administrator effective December 30, 2023, and an Amended City Attorney Employment Agreement. 12/05/2023 Santa Barbara City Council Final Agenda Page 9

19. Subject: Waterfront Department Proposed Assignment of License Agreement No. 27,014 – Epic Cruises For Santa Barbara Water Taxi [Agreement] (330.04)
Recommendation: That Council approve the Assignment of License Agreement No. 27,014 from Epic Cruises Inc., doing business as Celebration Cruises, to Sagamore Stearns, LLC for Water Taxi Lil’ Toot.

20. Subject: Contract Amendment for Design Services for the Santa Barbara Airport Taxiways M, J, and G Pavement Improvements Project [Agreement] (560.04)
Recommendation: That Council authorize the Public Works Director to execute the First Contract Amendment with Mead and Hunt, Inc., for design engineering services for the Taxiways M, J, and G Pavement Improvement Project, Contract No. 28,261, in the amount of $117,668, for a total expenditure authority of $380,448.

21. Subject: First Amendment to Contract for Cruise Ship Passenger Shuttle Service with Santa Barbara Airbus [Agreement] (570.03)
Recommendation: That Council authorize the Waterfront Director to increase Professional Service Agreement No. 28,040 with Santa Barbara Airbus, Inc. in the amount of $45,000 for a total contract amount of $128,705 for cruise ship shuttle services

22. Subject: Agreement with Governmentjobs.com, INC. (DBA “NEOGOV”) for Additional Human Resources Information System Modules to Improve Onboarding, Training, and Administration [Agreement] (410.01) Recommendation: That Council:

A. Authorize an addition to the Master Customer Agreement contract with Governmentjobs.com, INC, (DBA “NEOGOV”) for software product licensing, maintenance and support; and
B. Authorize the Information Technology Director to execute a new order form with Governmentjobs.com, INC, (DBA “NEOGOV”) in the amount of $215,170.11 for the setup and subscription of additional software products and services to be delivered over three years.
12/05/2023 Santa Barbara City Council Final Agenda Page 10

23. Subject: License Agreement with Metropolitan Transit District to Operate a Transit Signal Priority System [Agreement] (530.05)
Recommendation: That Council authorize the City Administrator to execute a license agreement with Santa Barbara Metropolitan Transit District for the operation of a Transit Signal Priority System.

24. Subject: Contract Amendment with KTUA in the Amount of $10,000 for the Chumash Cultural Project at Ambassador Park [Agreement] (570.05) Recommendation: That Council authorize the Parks and Recreation Director to execute a first contract amendment with KTUA for the Chumash Cultural Project at Ambassador Park, Contract No. 27,059, in the amount of $10,000 for a total project expenditure authority of $55,000.

25. Subject: Waterfront Department Proposed Assignment of Lease Agreement No. 26,890 – Epic Cruises, Inc. at 125 Harbor Way #14 [Agreement] (330.04) Recommendation: That Council approve the assignment of Lease Agreement No. 26,890 from Epic Cruises Inc. to Sagamore Stearns LLC for office space located at 125 Harbor Way, Suite #14.

26. Subject: Contract with the Santa Barbara South Coast Chamber of Commerce to Support Visitor Information Center Operations [Agreement] (180.01)
Recommendation: That Council authorize the City Administrator to execute an annual community promotion contract with the Santa Barbara South Coast Chamber of Commerce in an amount of $59,500.

27. 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 $65,000, for a new not to exceed total in the amount of $160,000.
12/05/2023 Santa Barbara City Council Final Agenda Page 11

28. Subject: Purchase Order for Pilot Control Lighting Upgrade at Santa Barbara Airport (560.04)
Recommendation: That Council find it is in the best interest of the City to waive formal bidding requirements pursuant to Santa Barbara Municipal Code Section

4.52.070(L) and authorize the Airport Director to execute a purchase order with ADB Safegate Americas, LLC. in the amount of $90,000 for the software and hardware upgrades to the airport lighting control system.

CONSENT PUBLIC HEARING

29. Subject: Specific Plan (SP11-CHC) and General Plan Amendment for 3237 State Street [Ordinance Introduction] (650.05)
Recommendation: That Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Municipal Code by Adding Chapter 30.136 to Establish the Community Health Center Specific Plan Zone; and
B. At the time of Ordinance adoption, adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the General Plan Map of the City of Santa Barbara Pertaining to Assessor's Parcel Number 051-112-026 Located at 3237 State Street.

30. Subject: Designation of Proposed Nonresidential Building at 621 West Micheltorena Street as a Community Benefit Project (610.04) Recommendation: That Council designate the proposed Santa Barbara Neighborhood Clinics project at 621 West Micheltroena Street as a Community Benefit Project pursuant to Santa Barbara Municipal Code (SBMC) Chapter

30.170, and allocate 3,352 square feet of nonresidential floor area to the project from the Nonresidential Growth Management Program’s Community Benefit category.

REPORT FROM THE FINANCE COMMITTEE

REPORT FROM THE ORDINANCE COMMITTEE

PUBLIC COMMENT

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
12/05/2023 Santa Barbara City Council Final Agenda Page 12

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

FINANCE DEPARTMENT

31. Subject: Adoption of a Pension Management Policy and Section 115 Trust [Resolution] (210.01)
Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Approving a Pension Management Policy;
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara 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, Subject to Approval as to Form by the City Attorney, the Agreement for Administrative Services and Establish the Investment Policy Statement with PARS; and C. 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 (FY) 2024, to Appropriate the Transfer Funds from Enterprise, Internal Service, and Other Funds from Available Reserves into the 115 Trust.

PUBLIC WORKS DEPARTMENT

32. Subject: Ordinance Authorizing and Regulating Parklets for Outdoor Dining in the Public Right of Way [Ordinance Introduction] (530.04) Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by the Addition of Chapter 9.180 Relating to Parklets in the Public Right of Way.

33. Subject: Monthly Update on State Street Interim Operations (530.04) Recommendation: That Council receive an update on State Street Interim Operations.
12/05/2023 Santa Barbara City Council Final Agenda Page 13

MAYOR AND COUNCIL REPORTS

34. Subject: Appointments to City Advisory Groups (140.05) Recommendation: That Council make appointments to various City Advisory Groups.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: December 5, 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_yil_qInCQKWZ-6xVXgYxig Webinar ID: 897 4556 2341
Passcode: 011611
After registering, you will receive a confirmation email containing information about joining the webinar.

Telephone: Dial 1-669-900-6833, Enter Webinar ID: 897 4556 2341 (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. The 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: Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street
Recommendation: That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement with Transition House in the Amount of $1,284,850 for Acquisition of the Real Property Located at 712 West Anapamu Street to Be Used for Transitional Housing, to Be Secured by a Deed of Trust and a 90-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements, subject to approval as to form by the City Attorney, as Necessary; B. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program (HOME) Fund in the amount of $759,487 to fund a portion of the requested property acquisition loan; and C. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP) Fund in the amount of $525,363 to fund the remaining requested property acquisition loan.

2. Subject: Resolution of Opposition to the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) [Resolution]
Recommendation: That Finance Committee hear a report and recommend that the City Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara in opposition to Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) scheduled for the November 2024 Ballot.

3. Subject: Increase the City Administrator’s Contracting Authority and Increase the Competitive Threshold for the Purchase of Goods and Services Recommendation: That Finance Committee recommends that Council:

4. Subject: Fiscal Year 2024 First-Quarter Review
Recommendation: That Finance Committee:

A. Receive a report from staff on the status of revenues and expenditures in relation to budget for the three months ended September 30, 2023; B. Accept the Fiscal Year (FY) 2024 Interim Financial Statements for the three months ended September 30, 2023; and
C. Recommend that Council approve proposed First Quarter (Q1) adjustments to FY2024 revenue and expenditure appropriations as detailed in the attached schedule of Proposed Q1 adjustments.

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Finance Committee
FROM: Housing and Human Services Division, Community Development Department
SUBJECT: Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street
RECOMMENDATION:

That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement with Transition House in the Amount of $1,284,850 for Acquisition of the Real Property Located at 712 West Anapamu Street to Be Used for Transitional Housing, to Be Secured by a Deed of Trust and a 90-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements, subject to approval as to form by the City Attorney, as Necessary; B. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program (HOME) Fund in the amount of $759,487 to fund a portion of the requested property acquisition loan; and C. Approve the allocation of available appropriations in the Fiscal Year 2023 HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP) Fund in the amount of $525,363 to fund the remaining requested property acquisition loan.

EXECUTIVE SUMMARY:

Transition House, a local nonprofit organization that operates shelter, transitional, and permanent housing programs for homeless families, has requested $1,284,850 in funding from the City to acquire property located at 712 West Anapamu Street (property) to provide ten additional units of transitional housing with supportive services for homeless families in Santa Barbara (Attachment 1). The Santa Barbara County Point in Time Count for 2023 found “the number of households with minor children counted has increased, 63 Agenda Item No. 1
File Code No. 120.03
Finance Committee Agenda Report
Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street
December 5, 2023

Page 2 ends

in 2022 to 93 in 2023 (47 percent).” This statistic shows a dire need for more housing for homeless families in the community.

DISCUSSION:

Background
Since 1984, Transition House has provided shelter and antipoverty programming to area families experiencing homelessness so that they can increase their income and develop the life skills necessary to achieve and maintain rental housing. Along with shelter, Transition House operates an existing transitional housing program for up to six families, two small apartment complexes, and three single-family homes, totaling 38 units with accompanying support services. All of the units are occupied by formerly homeless families with children.

Property
Transition House is purchasing the subject property in order to provide additional transitional family housing units that will provide a place for homeless families to live while completing the program to self-sufficiency. The property includes a two-story, eight-unit apartment building that has been extensively renovated, and two newly built Accessory Dwelling Units (ADUs). The configuration consists of nine one-bedroom and one two-bedroom units, all of which would comfortably accommodate smaller families of three to four members. The site includes approximately eight parking spaces, a private office for the case manager, and individual washers and dryers. A parcel map and recent pictures of the renovated property are shown in Attachment 2.

Funding Request
Transition House is seeking a loan from the City to fill the financial gap in their proposed project funding, as illustrated below.

Project Financing Summary
Project Costs:

Property Purchase Price $5,350,000 + closing costs
Furnishings 75,000
Miscellaneous Site Work 75,000
Total: $5,500,000
Project Financing:

Transition House (secured) 2,215,150 + closing costs
Private Funding (secured) 2,000,000
City of Santa Barbara Loan 1,284,850
Total: $5,500,000
Finance Committee Agenda Report
Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street
December 5, 2023

Page 3 ends

The total cost per unit is $550,000. Under the proposed funding, $150,000 per unit would be provided by the City. This $150,000 per-unit loan is substantially less than the cost of building a new unit, which is $700,000 according to recent figures.

Program Fees
As a transitional housing project, family households will enter into an occupancy agreement, paying a fee for their unit according to their income; therefore, no set rent for each unit will be charged or collected. The program fees collected will be sufficient only to support the program’s operations.

Estimate of Clients Served
Based on Transition House’s experience, in a ten-year period, a ten-unit permanent supportive housing complex may only serve 10 to 14 families; however, in the same timeframe, this ten-unit transitional housing project will serve 50 families or more, giving many more families the tools needed to break the cycle of poverty.

City Loan
If approved, the proposed $1,284,850 City loan will have a 30-year term at zero percent interest with a maturity date of 2054. Payments on the loan will be due on a “residual receipts” basis, meaning no payments will be due unless the net income of the project, after payment of necessary operating expenses and debt service, is sufficient to support such payments. Due to the use of the property, payments are not anticipated since no rent will be charged for the units.

There will also be no interest accrual on the loan as this property will be a public benefit that will require financial support from the City for its success. Any unpaid balance remaining at the end of the term is due and payable in full; however it is highly unlikely that Transition House will be able to pay the balance in full at that time, unless there is a change of use of the property approved by the City. This may result in possible consideration of full loan forgiveness at maturity.

Long-Term Affordability
As a condition for the City’s subsidy, a City Affordability Control Covenant Imposed on Real Property (covenant) will be recorded concurrently with the loan documents requiring that the project remain transitional housing for homeless families for 90 years. Transition House has several other projects with the City and has always been in full compliance with the City’s affordability and reporting requirements.

HOME Program Requirement
Section 231 of the Cranston-Gonzalez National Affordable Housing Act of 1990 requires that 15 percent of each HOME allocation be reserved for housing developed, sponsored, or owned by a Community Housing Development Organization (CHDO) within 24 months Finance Committee Agenda Report
Loan to Transition House for $1,284,850 for Acquisition of Property Located at 712 West Anapamu Street
December 5, 2023

Page 4 ends

after HOME funds have been made available to the participating jurisdiction (the City).

Transition House has committed to being certified as the City’s CHDO for this project, not only to access the 15 percent set-aside funding, but also to assist the City with fulfilling its federal requirement set by the U.S. Department of Housing and Urban Development Department (HUD).

Conclusion
Staff supports the proposed loan request because this project contributes to the City’s goals as outlined in the City’s General Plan 2023–2031 Housing Element Update, Transitional and Supportive Housing Policy 3.2, which states, “Promote innovative strategies and increase transitional and supportive housing opportunities for people experiencing homelessness.”
Transition House has an excellent record of providing successful transitional programs and effective support services that enable impoverished families to secure permanent housing opportunities. Their organization is taking the initiative, even risking their own reserves, to provide more transitional housing by acquiring property to house families in an extraordinarily challenging real estate market.

Staff requests that the Finance Committee recommend that City Council approve the $1,284,850 loan to acquire the property located at 712 West Anapamu Street in order to assist Transition House in providing more very valuable and much needed housing units with support services for homeless families in our community.

BUDGET/FINANCIAL INFORMATION:

Funding for the proposed $1,284,850 City loan will come from a combination of $759,487 in HOME entitlement funds and $525,363 from HOME-ARP funds. Both accounts have sufficient funds for this request.

ATTACHMENTS: 1. Transition House’s Request Letter

2. Property Parcel Map and Pictures

3. Draft Ordinance
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office
1 | Page
October 26, 2023
Laura Dubbels
Housing and Human Services Manager
Community Development
City of Santa Barbara
630 Garden Street
Santa Barbara, CA 93101
RE: REQUEST FOR TRANSITIONAL HOUSING FUNDING
Dear Ms. Dubbels,
Thank you for speaking with me over the last three weeks regarding Transition House’s desire to develop transitional housing with intensive program services for local homeless families with children. This letter represents Transition House’s formal request for $1,284,850 from the City of Santa Barbara to help us acquire a newly renovated, 10-unit apartment complex located at 712 W. Anapamu St. Attached you will find financials including a sources and uses budget for acquisition and a 15-year operating proforma.

The property includes a two-story, eight-unit apartment building that has been extensively renovated, and two brand new ADUs. The configuration consists of nine one-bedroom and one two-bedroom units, and all would comfortably accommodate smaller families with up to three to four members. The site includes approximately eight parking spaces, a private office for our case manager, and individual washer/dryers. The complex is located on a quiet block on the Westside of Santa Barbara, surrounded by other multifamily housing projects of similar size.

Transition House was able to negotiate a purchase price of $5,350,000. We are happy to report that thanks to the generosity of the Santa Barbara community, Transition House is able to contribute $4,065,150 in private funding to acquire the property and and additional $150,000 to furnish all units and do some minor site work to prepare for our families.

Transition House would own, operate, and maintain the property. Operations would be funded by monthly occupancy fees paid by transitional residents, and fundraising income generated by Transition House for services. Transition House has served the Santa Barbara community since 1984 and has a positive track record of successfully raising its annual operating budget.

Board of Directors
Mary Stern
President
Nancy Rapp
Vice President
Kristin Linehan
Secretary
Andy Carnaghe
Treasurer
Florence Michel
Auxiliary President
Samantha Alvarez
Jim Buckley
Steven Epstein
Lynn Goebel
Robert Kooyman
Ed Northup
Anita Peca, CPA
Pat Wheatley
Jessica Yacoub
Executive Director
Kathleen Baushke
425 E. Cota St.

Santa Barbara, CA
93101
805-966-9668
transitionhouse.com
Attachment 1
2 | Page
Since 1984, Transition House has provided shelter and antipoverty programming to area families experiencing homelessness, so that they might increase their income and develop the life skills necessary to sustain rental housing. Along with shelter, Transition House operates an existing transitional housing program for up to six families at 3030 De La Vina St. Transition House also owns two small apartment complexes and three single family homes totaling 38 units with accompanying support services. Our units are occupied by formerly homeless families with children.

In the four decades we have served the Santa Barbara community, Transition House has learned that family homelessness is very complex, and multiple barriers to housing stability must be addressed. For most families, many months are required to stabilize and identify a plan to achieve their goals. Transitional housing with onsite support services is the best way to give families the time and structure they need to leave poverty and homelessness behind--forever.

Our support services are aimed at increasing income earning potential and developing money management skills. At the end of the two-year program, families will receive assistance locating permanent housing and re-entering the rental marketplace.

Our programs are successful! Each year, roughly 93 percent of families that participate in our transitional housing program move on to permanent rental housing.

The time is right for a family transitional housing project like this one. Based on our experience, in a ten-year period, a 10-unit permanent housing complex may serve just 10 to 14 families. In the same timeframe, a 10-unit transitional project would serve 50 families or more, giving them the tools needed to help break the cycle of poverty. As a transitional housing project, family households would enter into an occupancy agreement, paying a fee for their unit. This income would support the operations of the program.

We can assure the City of Santa Barbara that we are committed to honoring an affordability covenant, and operating the program for many years to come.

Please let me know what additional information the City might require to consider our request. I am happy to share more about our vision with you if the City determines the project is of interest. Thank you for taking the time to assist Transition House with this project.

Very sincerely,
Kathleen Baushke
Executive Director
Enc: all transitional financials
Attachment 2

ATTACHMENT 3
1 ORDINANCE NO._____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A LOAN AGREEMENT

WITH TRANSITION HOUSE IN THE AMOUNT OF
$1,284,850 FOR ACQUISITION OF THE REAL
PROPERTY LOCATED AT 712 WEST ANAPAMU

STREET TO BE USED FOR TRANSITIONAL HOUSING,
TO BE SECURED BY A DEED OF TRUST AND A 90-

YEAR AFFORDABILITY CONTROL COVENANT

IMPOSED ON REAL PROPERTY AND AUTHORIZING

THE COMMUNITY DEVELOPMENT DIRECTOR TO

EXECUTE SUCH AGREEMENTS AS NECESSARY
WHEREAS, TRANSITION HOUSE (“Owner”) is acquiring real property commonly known as 712 West Anapamu Street in the City of Santa Barbara ("Property); and WHEREAS, by minute action on December 5, 2023, the City Council introduced an ordinance to approve a 30-year loan in the amount of One Million Two Hundred Eighty Four Thousand Eight Hundred and Fifty Dollars ($1,284,850), consisting of $759,487 from the HOME Investment Partnerships Program (HOME) and $525,363 from the HOME Investment Partnerships Program American Rescue Plan Program (HOME-ARP) Fund ("City Loan"), secured by a deed of trust and a 90-year affordability control covenant; and WHEREAS, in exchange for the City Loan, Owner and City agree to record an Affordability Control Covenant imposed on Real Property restricting the rental of the Property to Transitional Housing (“Covenant”) for a total of 90 years to comply with the City's Affordable Housing Policies and Procedures; and
WHEREAS, on December 12, 2023, the City Council, adopted by reading of title only an ordinance approving the City Loan, Deed of Trust and Covenant; and ATTACHMENT 3
2 WHEREAS, the City Loan is secured by the Deed of Trust recorded in the office of the County Recorder on ____, 2023, as Instrument No. of official records for the purpose of securing Owner's obligations under the City Loan; and WHEREAS, Owner agrees to comply with Covenant recorded in the office of the County Recorder on , 2023, as Instrument No. of
official records.

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

In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, an Ordinance of the Council of the City of Santa Barbara approving the City Loan, Deed of Trust and Covenant and authorizing approval by resolution of subsequent minor amendments to the agreements that do not extend their term, is hereby approved.

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Finance Committee
FROM: City Administrator’s Office
SUBJECT: Resolution of Opposition to the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1)
RECOMMENDATION:

That Finance Committee hear a report from staff and recommend that the City Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara in opposition to Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) scheduled for the November 2024 Ballot.

DISCUSSION:

The City’s 2022 legislative platform affirms that the City opposes legislation that would pre-empt or threaten local taxation authority. Furthermore, it supports legislation that generates additional revenue to state/local governments to meet the requirements of a growing population and deteriorating services and facilities.

The proposed Taxpayer Protection and Government Accountability Act (AG# 21-0042A1) is a proposed statewide ballot measure that would interfere with local discretion over taxes and fees, undermining the City's ability to fund local services and infrastructure and issue fines to those that violate laws intended to protect our environment, public health and safety, and our neighborhoods. Additionally, this measure would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent.

On Jan. 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act or AG# 21-0042A1. On February 2, 2023, the measure qualified for the November 2024 ballot. Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative.

Agenda Item No. 2
File Code No. 120.03
Finance Committee Agenda Report
Resolution of Opposition to the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1)
December 5, 2023

Page 2 ends

The Taxpayer Protection and Government Accountability Act limits voters’ authority, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold violators of State and local laws accountable.

The proposed measure (included in the agenda packet) would do the following:
(1) Limit voter authority and accountability
 Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures.  Invalidates the City of Upland decision that allows a majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months. (2) Restrict local fee authority to provide local services  Impacts franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.”
 Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence. (3) Restrict authority of State and local governments to issue fines and penalties for violations of law
 Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.
(4) Restrict local tax authority to provide local services  Requires voter approval to expand existing taxes (e.g., Utility Users Tax, Transient Occupancy Tax) to new territory (e.g., annexation) or expanding the base (e.g., new utility service).
 City charters may not be amended to include a tax or fee.  New taxes can be imposed only for a specific time period.  Taxes adopted after Jan. 1, 2022 that do not comply with the new rules are void unless reenacted.
 All State taxes require majority voter approval.

Finance Committee Agenda Report
Resolution of Opposition to the Taxpayer Protection and Government Accountability Act (AG# 21-0042A1)
December 5, 2023

Page 3 ends

 Prohibits any surcharge on property tax rate and allocation of property tax to State.

The proposed bill could result in the following fiscal impact if passed by voters:
 Billions of local government fee and charge revenues placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for transportation, and public facility use.
 Hundreds of millions of dollars of annual revenues, statewide, from dozens of tax and bond measures approved by voters between January 1, 2022 and November 9, 2022 would be subject to additional voter approval if not in compliance with the Initiative.
 Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements.
 The delay and deterrence of municipal annexations and associated impacts on housing and commercial development.
 Service and infrastructure impacts including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.

BUDGET/FINANCIAL INFORMATION:

Adopting the resolution has no direct financial implications. Existing Sales Tax revenues for the City would remain intact. However, it would place the City in financial jeopardy by limiting its ability to generate revenue to provide essential services, including local infrastructure, protecting our environment, water quality, and natural resources.

ATTACHMENTS: 1. CBRT Fiscal Analysis (01-14-23)

2. CBRT Measure Opposition Fact Sheet (02-01-23)

3. 21-0042A1 (Taxes)

4. Proposed Resolution
PREPARED BY: Brandon Beaudette, Senior Assistant to the City Administrator SUBMITTED BY: Rebecca Bjork, City Administrator
APPROVED BY: City Administrator's Office
CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
 Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for drinking water, sewer sanitation, and public health and safety.  About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to legal peril.
1  Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between January 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance with the initiative.
 Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements.  The delay and deterrence of municipal annexations.
 Substantially higher legal and administrative cost of public infrastructure financing which will delay and deter new residential and commercial development.
 Service and infrastructure declines including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.

1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
 Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures.  Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).3
o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through the effective date of the Act should it pass would be void a year after the effective date of the initiative.  Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes.  A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of cities that do not already have such authority in their charters to adopt Property Transfer Taxes. o There are no more than a few of these every few years, but it is a valuable tax for those that adopt it.
1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the Initiative.
2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the election results of the November 5, 2024 election.
3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority voter approval.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
Rev. January 14, 2023
ATTACHMENT 1
– 2 – rev January 14, 2023
CaliforniaCityFinance.com
 Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative. o If past election patterns and elections in 2022 are an indication, over 200 tax measures approving more than $2 billion annual revenues to support local public services would not be in compliance and would be subject to reenactment. Most will be taxes without a specific end date and special taxes (including parcel taxes). Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, the measures would each require declaration of emergency and unanimous vote of the governing board to be placed on a special election ballot within a year for approval or the tax will be void after that date. I would expect most to succeed, but some will not, in particular citizen initiative majority vote special taxes which would have to meet a higher voter approval threshold to continue.  Requires voter approval to expand an existing tax to new territory (annexations). This would require additional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions would each require unanimous vote of the agency board to be placed on a special election ballot or would be void a year later.

1.a. Number of Measures and Value of Local Taxes at Risk4 Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative 21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the effective date of the measure, reducing the local public services funded by these measures. We can expect a similar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual local funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion.

Citizen Initiative Special Taxes in 2022.

Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less than two-thirds of the voters are out of compliance with Initiative 21-0042A1.

On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21- 0042A1.

On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these 4 Source: Compilation and summary of data from County elections offices.

June 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
John C. Fremont
Healthcare District Mariposa Measure N Transactions & Use Tax 1 cent $ 150,000 hospital 40yrs 69.6% PASS County of Kings Kings Measure F Transactions
& Use Tax 1/2 cent $ 11,700,000 fire none 37.6% FAIL
Manhattan Beach
USD Los Angeles Measure A School Parcel Tax $1095/yr $ 12,000,000 schools 12yrs 31.2% FAIL ATTACHMENT 1
– 3 – rev January 14, 2023
CaliforniaCityFinance.com
measures failed with less than majority voter approval. The other seven measures received majority, but less than two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21- 0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4 billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness prevention, and schools in these communities.

Non-Specific Tax Durations in 2022
Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved local measures generate $561 million per year that will expire a year after the effective date of the initiative if Initiative 21-0042A1 passes.

November 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
Crockett Community
Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8% PASS Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5% PASS County of Mendocino Measure O Transactions
& Use Tax
1/8 cent then 1/4
cent in 2027 $ 4,000,000 library none 60.8% PASS
Los Angeles Los Angeles Measure ULA Property
Transfer Tax
4% if >$5m, 5.5%
if >$10m $600 m to $1.1 b affordable housing none 57.3% PASS County of Sacramento Measure A Transactions
& Use Tax same 1/2 cent $ 212,512,500 transportati
on
40yrs 55.3% PASS
San Francisco Proposition M Business
Operations Tax
$2500-$5000/
vacant resid unit $ 20,000,000 housing 30yrs 54.5% PASS Santa Monica Los Angeles Measure GS Property
Transfer Tax
$56/$1000 if
>$8m $ 50,000,000
schools,
homelessne
ss, afford.
housing
none 53.3% PASS
Total $900,000 to
$1.4 billion
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
County of Calaveras Measure A Transactions
& Use Tax 1 cent $ 5,000,000 fire none 49.4% FAIL
South San Francisco
(for Schools) San Mateo Measure DD School Parcel Tax $2.50/sf $ 55,900,000 schools none 47.2% FAIL County of Fresno (for CSU ) Measure E Transactions
& Use Tax
1/5 ct,
1/40 ct (Reedley) $ 36,000,000 Calif State Univ 20yrs 46.9% FAIL Santa Cruz Santa Cruz Measure N Parcel Tax $6k/vacant SFU xxx vacant property
xxx 44.2% FAIL
County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1% FAIL San Francisco City
College
San
Francisco Measure O School Parcel Tax $150/sfu $ 37,000,000 schools 10yrs 36.7% FAIL Morro Bay San Luis
Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0% FAIL Inverness Public
Utility District Marin Measure O Parcel Tax $0.20/sf, $150/vacant $ 276,000 fire none 27.0% FAIL ATTACHMENT 1
– 4 – rev January 14, 2023
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Oakland Alameda Measure T Business Tax
General various $ 20,900,000 none 71.4% PASS
Culver City Los Angeles Measure BL Business Tax
General various $ 10,000,000 none 60.5% PASS
El Segundo Los Angeles Measure BT Business Tax
General various $ 3,000,000 none 51.2% PASS
Pico Rivera Los Angeles Measure AB Business Tax
General various $ 5,800,000 none 75.5% PASS
Santa Ana Orange Measure W Business Tax
General various neutral none 64.8% PASS
Tracy San Joaquin Measure B Business Tax
General various $ 3,200,000 none 72.6% PASS
Burlingame San Mateo Measure X Business Tax
General various $ 2,500,000 none 75.1% PASS
Los Gatos Santa Clara Measure J Business Tax
General various $ 1,100,000 none 53.4% PASS
Santa Clara Santa Clara Measure H Business Tax
General
$45/employee,
$15/rental unit $ 6,000,000 none 59.5% PASS
Brisbane San Mateo Measure O Business Tax
lodging busn $2.50/rm/day $ 250,000 none 69.2% PASS
East Palo Alto San Mateo Measure L Business Tax
resid. rentals

2.5%
grossRcpts $ 1,480,000 none 69.9% PASS
County of Santa Cruz Unincorporated Measure C Busn Tax - disp cups 12.5cents/cup $ 700,000 none 68.2% PASS
South Lake Tahoe El Dorado Measure G Busn Tax
Cannabis
6% retail,
manufacturing $ 950,000 none 62.9% PASS
McFarland Kern Measure O Busn Tax
Cannabis
8% of gross
receipts retail, $ 1,800,000 none 63.5% PASS
Avenal Kings Measure C Busn Tax
Cannabis
$25+/sf or
15% gr rcpts $ 600,000 none 61.8% PASS
Baldwin Park Los Angeles Measure CB Busn Tax
Cannabis
4%
grossRcpts $ 300,000 none 51.3% PASS
Claremont Los Angeles Measure CT Busn Tax
Cannabis
4%-7% gr
rcpts, $1- $ 500,000 none 61.1% PASS
County of Los Angeles Unincorporated Measure C Busn Tax Cannabis
4% gross
receipts retail, $ 15,170,000 none 60.1% PASS
Cudahy Los Angeles Measure BA Busn Tax
Cannabis
15%
grossRcpts $ 3,600,000 none 54.0% PASS
El Segundo Los Angeles Measure Y Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 72.8% PASS
Hermosa Beach Los Angeles Measure T Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 67.6% PASS
Lynwood Los Angeles Measure TR Busn Tax
Cannabis 5%to10% $ 3,000,000 none 66.4% PASS
Santa Monica Los Angeles Measure HM Busn Tax
Cannabis
10% gross
Rcpts $ 5,000,000 none 66.4% PASS
South El Monte Los Angeles Measure CM Busn Tax
Cannabis
6% special
excise tax on $ 126,000 none 53.7% PASS
Monterey Monterey Measure J Busn Tax
Cannabis 6% grossRcpt $ 1,300,000 none 65.2% PASS
Pacific Grove Monterey Measure N Busn Tax
Cannabis 6% grossRcpt $ 300,000 none 70.8% PASS
Huntington Beach Orange Measure O Busn Tax
Cannabis
6% retail, 1%
other $ 600,000 none 54.7% PASS
ATTACHMENT 1
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Notes
?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1. n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November statewide ballot.

Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Laguna Woods Orange Measure T Busn Tax
Cannabis
4%-10% of
gross receipts $ 750,000 none 61.1% PASS
Corona Riverside Measure G Busn Tax
Cannabis
9% of gross
receipts for $ 5,000,000 none 61.6% PASS
Montclair San Bernardino Measure R Busn Tax
Cannabis
7%
grossRcpts $ 3,500,000 none 70.3% PASS
County of San Diego Unincorporated Measure A Busn Tax
Cannabis
6% retail, 3%
distribution, $ 5,600,000 none 57.4% PASS
Encinitas San Diego Measure L Busn Tax
Cannabis
4% to 7% of
gross receipts $ 1,400,000 none 65.1% PASS
Healdsburg Sonoma Measure M Busn Tax
Cannabis 8% grossRcpt $ 500,000 none 72.7% PASS
Exeter Tulare Measure B Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 66.5% PASS
Tulare Tulare Measure Y Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 65.2% PASS
Woodland Yolo Measure K Busn Tax
Cannabis
10%
grossRcpts
? none 66.2% PASS
Redlands San Bernardino Measure J Busn Tax
Distrib centers
from $0.047/sf
to $0.105/sf $ 530,000 none 53.5% PASS
Arcadia Los Angeles Measure SW Busn Tax
Sports Betting
5%
grossRcpts
n/a* none 63.9% PASS
Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS none 76.0% PASS Cameron Park Airport
District El Dorado Measure J ParcelTax by $600 to $900/parcel $ 117,900 airport/ streets none 78.2% PASS Highlands Village
Lighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3% PASS Knolls Property
Owners CSD El Dorado Measure P ParcelTax by $300+ to $600+/parcel $ 8,400 streets none 75.5% PASS Sundance Trail Zone of
Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2% PASS South Pasadena Los Angeles Measure LL ParcelTax xxx ? library none 86.2% PASS River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1% PASS Emeryville Alameda Measure O PropTransfTax $15/$1000 if $1m-$2m, $ 5,000,000 none 71.6% PASS
San Mateo San Mateo Measure CC PropTransfTax by 1% to 1.5% if >$10m $ 4,800,000 none 71.8% PASS
Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2% PASS Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7% PASS Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3% PASS Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6% PASS Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2% PASS Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1% PASS Santa Monica Los Angeles Measure CS TOT by 1%, 3%
home shares $ 4,100,000 none 73.7% PASS
ATTACHMENT 1
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Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Anaheim Orange Measure J TOT online travel
companies $ 3,000,000 none 59.2% PASS
La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1% PASS Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5% PASS Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8% PASS Roseville Placer Measure C TOT by 4% to 10% $ 3,000,000 none 73.0% PASS Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 none 54.4% PASS Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9% PASS Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9% PASS Imperial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4% PASS El Paso de Robles San Luis ObispoMeasure F TOT by 1% to 11% $ 750,000 none 61.2% PASS Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3% PASS Millbrae San Mateo Measure N TOT by 2% to 14% $ 1,500,000 none 75.8% PASS County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,080,000 none 63.3% PASS County of Placer -
North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0% PASS County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2,300,000 none 69.2% PASS County of El Dorado -
East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8% PASS Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4% PASS Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2% PASS Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4% PASS Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3% PASS County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000,000 none 50.8% PASS McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2% PASS Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2% PASS Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5% PASS Susanville Lassen Measure P TrUT 1 cent $ 1,750,000 none 54.7% PASS Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1% PASS Malibu Los Angeles Measure MC TrUT 1/2 cent $ 3,000,000 none 52.6% PASS Monterey Park Los Angeles Measure MP TrUT 3/4 cent $ 6,000,000 none 58.5% PASS Torrance Los Angeles Measure SST TrUT 1/2 cent $ 18,000,000 none 55.0% PASS Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4% PASS Sand City Monterey Measure L TrUT by 1/2cent to

1.5cents $ 1,400,000 none 68.7% PASS
Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0% PASS Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1% PASS Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4% PASS Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8% PASS Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2% PASS Solana Beach San Diego Measure S TrUT 1 cent $ 3,000,000 none 66.7% PASS Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9% PASS Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7% PASS Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1% PASS ATTACHMENT 1
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Co-temporal Advisory Measures in 2022
At the November 2022 election, there was just one local general tax measure that was accompanied by an advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with just 34 percent approval as voters instead chose the citizen initiative Measure GS.

There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P passes, should the revenues be used to balance the budget to maintain and enhance existing public safety services (police and fire), and provide funding to support street infrastructure improvements and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative (i.e., in December 2025).

1.b. Additional Costs and Public Service Effects of the Tax Provisions Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously legally approved by voters, will be in the tens of millions in total statewide.

2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
 Subjects new fees and charges for a product or service to a new "actual and reasonable test."  Subjects fees and charges for entrance to local government property; and rental and sale of local government property to a new, undefined, “reasonable” test.  Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1, 5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures.

Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Watsonville Santa Cruz Measure R TrUT 1/2 cent $ 5,000,000 none 64.4% PASS Vallejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7% PASS Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8% PASS County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4% PASS Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fire none 73.7% PASS Truckee Nevada Measure U TrUT 2/3 by 1/4 cent to
1/2 cent $ 3,000,000 open space / trails none 76.4% PASS Palo Alto Santa Clara Measure L UtilityTransfer 18% gas $ 7,000,000 none 77.7% PASS Santa Clara Santa Clara Measure G UtilityTransfer 5 % $ 30,000,000 none 84.2% PASS Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3% PASS Carson Los Angeles Measure UU UUT 2% electr, gas $ 8,000,000 none 78.4% PASS Sebastopol Sonoma Measure N UUT 3.75% (same) $ 700,000 none 83.5% PASS ATTACHMENT 1
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CaliforniaCityFinance.com
2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal challenge.
 Subjects a challenged fee to new, higher burdens of proof if legally challenged.

2.a. Value on New Local Government Fees and Charges at Risk6 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $2 billion per year including those adopted since January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40 percent) is cities, and $300 million (15 percent) is counties.7 Major examples of affected fees and charges are:

1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees.

2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.

3. Emergency response fees - such as in connection with DUI.

4. Advanced Life Support (ALS) transport charges.

5. Business improvement district charges.

6. Fees for processing of land use and development applications such as plan check fees, use permits, design review, environmental assessment, plan amendment, subdivision map changes.

7. Document processing and duplication fees.

8. Facility use charges, parking fees, tolls.

9. Fines, penalties.

10. Fees for parks and recreation services.

2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. ***********
mc
6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts, summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 7 School fees are also affected but the amount is negligible by comparison.

ATTACHMENT 1
1 The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A11
Feb. 1, 2023
Effective date: Any new or increased tax or fee adopted by the Legislature, a city council, or the local voters after January 1, 2022, must comply with the Act’s new rules.

Voters
• Local advisory measures are prohibited. No measure may appear on the ballot asking for approval of a general tax that would allow the voters to express a preference for how the revenue from the general tax will, could, or should be used.
• Overturns Upland decision which upheld a special tax that had been placed on the ballot by the voters to be approved by a majority vote. Taxes proposed by initiative will be subject to the same rules as taxes placed on the ballot by a city council.
• Voters may not amend a city charter to impose, extend, or increase a tax or fee.

Local taxes
• Requires voter approval in order to apply an existing tax:
o to territory that is annexed.
o to a new service or product, for example when a utility user tax is applied to a new service.
• All new or increased taxes adopted after Jan. 1, 2022, must include a sunset date.

State taxes
• All new or increased state taxes require statewide voter approval. • Prohibits a property tax “surcharge” (increase). Prohibits any allocation of property tax to the state.
1 This is a summary of some of the more significant provisions of the Act. Please review the Act for a complete understanding of the changes it makes to the Constitution.

ATTACHMENT 2
2 Fees and charges
• Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking.
• State and cities have the burden of proving by “clear and convincing evidence” that a fee/charge is not a tax, that the amount is reasonable, and that it does not exceed “actual cost.”
• Franchise fees — historically considered fees, not taxes — will more likely be considered taxes due to the elimination of an existing category of “fee” and the requirement that charges to entrance, purchase, rental, or lease of government property be “reasonable.” The state and cities issue franchises to oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations.
• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.

Fines and penalties (administrative enforcement of state law and municipal codes)
• May require voter approval of fines and penalties for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property.

ATTACHMENT 2
BELL, McANDREWS & HILTACHK, LLP
Anabel Renteria
Initiative Coordinator
ATTORNEYS AND COUNSEL-ORS AT I.AW
455 C APITO L MALL, S UITE 600
SACRAMENTO, CALIFOE=INIA 95014
(916) 44;a-7757
FAX [916) 44-;a-77 59
www.bmhlaw.com
January 4, 2022
2 1 - 0 0 4 2

RECEIVED
JAN O 4 2022
Office of the Attorney General
State of California

INITIATIVE COORDINATOR

ATTORNEY GENERAL'S OFFICE
PO Box 994255
Sacramento, CA 94244-25550
Re: Initiative 21-0042 - Amendment Number One
Dear Initiative Coordinator:

Pursuant to subdivision (b) of Section 9002 of the Elections Code, enclosed please find Amendment #1 to Initiative No. 21-0042 "The Taxpayer Protection and Government Accountability Act." The amendments are reasonably germane to the theme, purpose or subject of the initiative measure as originally proposed.

I am the proponent of the measure and request that the Attorney General prepare a circulating title and summary of the measure as provided by law, using the amended language.

Thank you for your time and attention processing my request.

Sincerely,
Thomas W.
~ Hiltachk
2 1 - 0 0 4 2 Arndt. # /
The Taxpayer Protection and Government Accountability Act [Deleted codified text is denoted in strikeout. Added codified text is denoted by italics and underline.] Section 1. Title
This Act shall be known, and may be cited as, the Taxpayer Protection and Government Accountability Act.

Section 2. Findings and Declarations
(a) Californians are overtaxed. We pay the nation's highest state income tax, sales tax, and gasoline tax. According to the U.S. Census Bureau, California's combined state and local tax burden is the highest in the nation. Despite this, and despite two consecutive years of obscene revenue surpluses, state politicians in 2021 alone introduced legislation to raise more than $234 billion in new and higher taxes and fees.
(b) Taxes are only part of the reason for California's rising cost-of-living crisis. Californians pay billions more in hidden "fees" passed through to consumers in the price they pay for products, services, food, fuel, utilities and housing. Since 2010, government revenue from state and local "fees" has more than doubled.
(c) California's high cost of living not only contributes to the state's skyrocketing rates of poverty and homelessness, they are the pushing working families and job-providing businesses out of the state. The most recent Census showed that California's population dropped for the first time in history, costing us a seat in Congress. In the past four years, nearly 300 major corporations relocated to other states, not counting thousands more small businesses that were forced to move, sell or close. (d) California voters have tried repeatedly, at great expense, to assert control over whether and how taxes and fees are raised. We have enacted a series of measures to make taxes more predictable, to limit what passes as a "fee," to require voter approval, and to guarantee transparency and accountability. These measures include Proposition 13 (1978), Proposition 62 (1986), Proposition 218 (1996), and Proposition 26 (2010).
(e) Contrary to the voters' intent, these measures that were designed to control taxes, spending and accountability, have been weakened and hamstrung by the Legislature, government lawyers, and the courts, making it necessary to pass yet another initiative to close loopholes and reverse hostile court decisions.

Section 3. Statement of Purpose
(a) In enacting this measure, the voters reassert their right to a voice and a vote on new and higher taxes by requiring any new or higher tax to be put before voters for approval. Voters also intend that all fees and other charges are passed or rejected by the voters themselves or a governing body elected by voters and not unelected and unaccountable bureaucrats.
(b) Furthermore, the purpose and intent of the voters in enacting this measure is to increase transparency and accountability over higher taxes and charges by requiring any tax measure placed on the ballot1 either at the state or local level-to clearly state the type and rate of any tax, how long it will be in effect, and the use of the revenue generated by the tax.
(c) Furthermore, the purpose and intent of the voters in enacting this measure is to clarify that any new or increased form of state government revenue, by any name or manner of extraction paid directly or indirectly by Californians, shall be authorized only by a vote of the Legislature and signature of the Governor to ensure that the purposes for such charges are broadly supported and transparently debated. (d) Furthermore, the purpose and intent of the voters in enacting this measure is also to ensure that taxpayers have the right and ability to effectively balance new or increased taxes and other charges with the rapidly increasing costs Californians are already paying for housing, food, childcare, gasoline, energy, healthcare, education, and other basic costs of living, and to further protect the existing constitutional limit on property taxes and ensure that the revenue from such taxes remains local, without changing or superseding existing constitutional provisions contained in Section 1{c) of Article XIII A. (e) In enacting this measure, the voters also additionally intend to reverse loopholes in the legislative twothirds vote and voter approval requirements for government revenue increases created by the courts including, but not limited to, Cannabis Coalition v. City of Upland, Chamber of Commerce v. Air Resources Board, Schmeer v. Los Angeles County, Johnson v. County of Mendocino, Citizens Assn. of Sunset Beach v.

Orange County Local Agency Formation Commission, and Wilde v. City of Dunsmuir.

Section 4. Section 3 of Article XIII A of the California Constitution is amended to read:

Sec. 3(a} Every levy, charge. or exaction of any kind imposed by state law is either a tax or an exempt charge.
illlJ1l ~ Any change in state statute Jaw which results in any taxpayer paying a new or higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature, and submitted to the electorate and approved by a maiority vote, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property, may be imposed. Each Act shall include:
(A) A specific duration of time that the tax will be imposed and an estimate of the annual amount expected to be derived from the tax.
(BJ A specific and legally binding and enforceable limitation on how the revenue from the tax can be spent.

If the revenue from the tax can be spent for unrestricted general revenue purposes. then a statement that the tax revenue can be spent for "unrestricted general revenue purposes" shall be included in a separate, stand-alone section. Any proposed change to the use of the revenue from the tax shall be adopted by a separate act that is passed by not less than two-thirds of all members elected to each of the two houses of the Legislature and submitted to the electorate and approved by a maiority vote. (2) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, including a measure proposed by an elector pursuant to Article II, include:
{A) The type and amount or rate of the tax;
(BJ The duration of the tax: and
2 (CJ The use of the revenue derived from the tax.
(c} Any change in state law which results in any taxpayer paying a new or higher exempt charge must be imposed by an act passed by each of the two houses of the Legislature. Each act shall specify the type of exempt charge as provided in subdivision (e ), and the amount or rate of the exempt charge to be imposed.

Ml._fbt As used in this section and in Section 9 of Article II, "tax" means every aA1f levy, charge, or exaction of any kind imposed by the State state law that is not an exempt charge. e1<eept the follo•Ning:
(e) As used in this section. "exempt charge" means only the following:
(1) a el:iarge imposes fer a s1=1eeifie eenefit eonferreEl or pri'+'ilege granteEl aireetly to tl:ie 13ayor tl:iat is not 1=1ro>viaeEl to tl:iose not et:iargeEI, anEI whiel:i aoes not e1<ceeEl tl:ie reasonal3Ie costs to tl:ie State of eonferring the benefit or granting the pri¥ilege to the 1=1a¥OF.
ill {-2+ A reasonable charge irnposeEl for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the rnasonable actual costs to the State of providing the service or product to the payor. f.11 ~ A charge in,poseEl for the reasonable regulatory costs to the State incident to issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. (3) A levy, charge. or exaction collected from local units of government. health care providers or health care service plans that is primarily used by the State of California for the purposes of increasing reimbursement rates or payments under the Medi-Cal program, and the revenues of which are primarily used to finance the non-federal portion of Medi-Cal medical assistance expenditures. (4) A reasonable charge iR'l13oseEl for entrance to or use of state property, or the purchase. rental, or lease of state property, except charges governed by Section 15 of Article XI. (5} A fine, or penalty, or other monetary el:large including any applicable interest for nonpayment thereot imposed by the judicial branch of government or the State, as a result of a state administrative enforcement agency pursuant to adiudicatorv due process, to punish a violation of law. (6} A levy, charge, assessment, or exaction collected for the promotion of California tourism pursuant to Chapter 1 (commencing with Section 13995) of Part 4.7 of Division 3 of Title 2 of the Government Code. flL~Any tax or exempt charge adopted after January 1, 2022 ~, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt charge is reenacted B'l the begislatuFe anel signea into law ey tl:ie <iio¥ernoF in compliance with the requirements of this section. [gl[.JlJG:} The State bears the burden of proving by a preponEleranee oftl:le clear and convincing evidence that a levy, charge, or other exaction is an exempt charge and not a tax. The State bears the burden of proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount charged does not exceed the actual cost of providing the service or product to the payor. ,tR-a-t tl:ie amouRt is RO n,ore tl:ian neeessary to cover the reasonable costs of the go•.•emn,ental actii,•i:t>,• ane 3 that the manner in •Nhiel.:i these cests are allecated ts a pa·1er bear a fair er reasenable relatienshi13 ts the 13a·1or's b1:1relens on, or benefits reeei11eel from, the go•.ieFRmental actit.iit'( (2) The retention ofrevenue by, or the payment to. a non-governmental entity ofa levv. charge, or exaction of any kind imposed by state law, shall not be a factor in determining whether the levy. charge, or exaction is a tax or exempt charge.
(3) The characterization of a levy, charge, or exaction of any kind as being voluntary, or paid in exchange for a benefit, privilege, allowance, authorization, or asset, shall not be a factor in determining whether the levy, charge, or exaction is a tax or an exempt charge. /4} The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge. (h) As used in this section:
(1) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor, and {ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In computing "actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes, other exempt charges, grants, and state or federal funds received to provide such service or product.
(2) "Extend" includes, but is not limited to, doing any of the following with respect to a tax or exempt charge: lengthening its duration. delaying or eliminating its expiration, expanding its application to a new territory or class ofpayor, or expanding the base to which its rate is applied. (3) "Impose" means adopt, enact, reenact, create, establish, collect, increase or extend. (4) "State law" includes, but is not limited to. any state statute, state regulation, state executive order. state resolution, state ruling, state opinion Jetter, or other legal authority or interpretation adopted, enacted. enforced, issued, or implemented by the legislative or executive branches of state government. "State law" does not include actions taken by the Regents of the University of California, Trustees of the California State University, or the Board of Governors of the California Community Colleges.

Section 5. Section 1 of Article XIII C of the California Constitution is amended, to read:

Sec. 1. Definitions. As used in this article:
{a) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor. and {ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In computing "actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes. other exempt charges, grants, and state or federal funds received to provide such service or product.
(b) "Extend" includes, but is not limited to. doing any of the following with respect to a tax. exempt charge, or Article XIII D assessment. fee, or charge: lengthening its duration, delaying or eliminating its expiration. expanding its application to a new territory or class of payor, or expanding the base to which its rate is applied.
4 .lfl..W 11General tax" means any tax imposed for general governmental purposes. (d} "Impose" means adopt, enact, reenact, create, establish, collect, increase, or extend. {clJb} "Local government" means any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity, or an elector pursuant to Article fl or the initiative power provided by a charter or statute.
(f) "Local law" includes. but is not limited to, any ordinance, resolution, regulation. ruling, opinion letter, or other legal authority or interpretation adopted, enacted, enforced, issued, or implemented by a local government.
{gl_{t} "Special district" means an agency of the State, formed pursuant to general law or a special act, for the local performance of governmental or proprietary functions with limited geographic boundaries including, but not limited to, school districts and redevelopment agencies. f11L{d} "Special tax" means any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.
111 i@} As used in this article, and in Section 9 of Article II, "tax" means every aRV-levy, charge, or exaction of any kind, imposed by a local go,;ernmeRt law that is not an exempt charge., exeept tl=le fellowiRg:
(i) As used in this section, "exempt charge" means only the following:
(1) A cl=large imposeel fer a speeifie beAefit eoAferreel or pri,;ilege graAteel eliFeetl')' to tl=le pa1,ior tl=lat is Rot pre1,•ieleel to these Rot ehargea, aA£l which £lees Rot exeeeel tl=le reaseAable costs to tl=le loeal gm,·ernFAeAt of conferriAg the beAefit or graAting tl:1e pri¥ilege.
ill R} A reasonable charge imposes for a specific local government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasoAable actual costs to the local government of providing the service or product. fl1 WA charge im13ose£l for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.

W {4t A reasonable charge imposeel for entrance to or use of local government property, or the purchase, rental, or lease of local government property.

Ml. fSt A fine, or penalty, or other FAOA@tar,· eharge including any applicable interest for nonpayment thereat imposed by the judicial branch of government or a local government administrative enforcement agency pursuant to adiudicatorv due process, as a res1,1lt of to punish a violation of law. ill -f6t A charge imposed as a condition of property development. No levv, charge, or exaction regulating or related to vehicle miles traveled may be imposed as a condition of property development or occupancy. f.i1 f7t An AssessFAeRts a Rel property relate el fees assessment. fee. or charge imJ;1oseel iA aeeoraanee witl=l the pro¥isio A5 of subject to Article XI 11 D, or an assessment imposed upon a business in a tourism marketing district, a parking and business improvement area, or a property and business improvement district. 5 (7) A charge imposed for a specific health care service provided directly to the payor and that is not provided to those not charged. and which does not exceed the reasonable costs to the local government of providing the health care service. As used in this paragraph, a "health care service" means a service licensed or exempt from licensure by the state pursuant to Chapters 1. 1.3, or 2 of Division 2 of the Health and Safety Code.

The local government bears the b1:1rden of proving by a preponderance of the e .. ·ielence that a lew, charge, or other exaction is not a ta1<, that the amo1:1nt is no more than necessaPJ' to cover the reasonable costs of the go•,ernfflental acti•.«ity anel that tJ:ie manner in which those costs are allocateel to a pa•ror bear a fair or reasonable relationship to the pa•ror's blslrdens on, or bene:fits receiveel from, the go1a1ernmental acfa•ity.

Section 6. Section 2 of Article XIII C of the California Constitution is amended to read:

Sec. 2. Local Government Tax Limitation. Notwithstanding any other provision of this Constitution:
(a) Every levy. charge. or exaction of any kind imposed by local law is either a tax or an exempt charge. All taxes imposed by any local government shall be deemed to be either general taxes or special taxes. Special purpose districts or agencies, including school districts, shall have no power to levy general taxes. (b) No local Jaw go,.·ernment whether proposed by the governing body or by an elector, may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body. (c) An•r general tax imposed, el<tended, or increaseel, •.-.iitho1:1t •.·oter approval, lay any local go,.·ernment on or after Janlslary 1, 1995, ana prior ta the effecti,.·e date of this article, shall contin1:1e to be imposed only if appro,.·ea b1• a majority vote of the voters voting in an election OR the issye of the in:iposition, whicl::i election sl::iall be l::ield witl::iin t•Ne 1•ears ef the effectii.ie date of this article and in com13liance with slslbdi\·isien (b}. {El) No local law government. whether proposed by the governing body or by an elector. may impose, eMteRd, er increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote. A special tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. {d) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, include:
(1) The type and amount or rate of the tax;
(2) the duration of the tax; and
(3) The use of the revenue derived from the tax. If the proposed tax is a general tax. the phrase "for general government use" shall be required, and no advisory measure may appear on the same ballot that would indicate that the revenue from the general tax will. could. or should be used for a specific purpose. (e) Only the governing body of a local government. other than an elector pursuant to Article II or the initiative power provided by a charter or statute. shall have the authority to impose any exempt charge.

The governing body shall impose an exempt charge by an ordinance specifying the type of exempt charge 6 as provided in Section l(i) and the amount or rate of the exempt charge to be imposed. and passed by the governing body. This subdivision shall not apply to charges specified in paragraph (7) of subdivision (i) of Section 1.
ff) No amendment to a Charter which provides for the imposition, extension, or increase of a tax or exempt charge shall be submitted to or approved by the electors. nor shall any such amendment to a Charter hereafter submitted to or approved by the electors become effective for any purpose. (q) Any tax or exempt charge adopted after January 1, 2022, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt charge is reenacted in compliance with the requirements of this section.
{h)(1) The focal government bears the burden of proving by clear and convincing evidence that a levy, charge or exaction is an exempt charge and not a tax. The local government bears the burden of proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount charged does not exceed the actual cost of providing the service or product to the payor. (2} The retention of revenue by, or the payment to, a non-governmental entity of a levy. charge, or exaction of any kind imposed by a local law, shall not be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge.
(3) The characterization of a levy. charge. or exaction of any kind imposed by a local law as being paid in exchange for a benefit. privilege, allowance, authorization, or asset, shall not be factors in determining whether the levy, charge, or exaction is a tax or an exempt charge. (4) The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge.

Section 7. Section 3 of Article XIII D of the California Constitution is amended, to read:

Sec. 3. Property Taxes, Assessments, Fees and Charges Limited (a) No tax, assessment, fee, 6f charge, or surcharge, including a surcharge based on the value ofpropertv, shall be assessed 13y a Ry ageRC'f upon any parcel of property or upon any person as an incident of property ownership except:
(1) The ad valorem property tax impeseEI p1::1rsYaRt te described in Section 1(a) of Article XIII and Section 1/a) of Article XIII A, and described and enacted pursuant to the voter approval requirement in Section 1/b) Q[Article XII I A.
(2) Any special non-ad valorem tax receiving a two-thirds vote of qualified electors pursuant to Section 4 of Article XIII A, or after receiving a two-thirds vote of those authorized to vote in a community facilities district by the Legislature pursuant to statute as it existed on December 31, 2021. (3) Assessments as provided by this article.
(4) Fees or charges for property related services as provided by this article. 7 (b) For purposes of this article, fees for the provision of electrical or gas service shall not be deemed charges or fees imposed as an incident of property ownership.

Section 8. Sections 1 and 14 of Article XIII are amended to read:

Sec. 1 Unless otherwise provided by this Constitution or the laws of the United States:
(a) All property is taxable and shall be assessed at the same percentage of fair market value. When a value standard other than fair market value is prescribed by this Constitution or by statute authorized by this Constitution, the same percentage shall be applied to determine the assessed value. The value to which the percentage is applied, whether it be the fair market value or not, shall be known for property tax purposes as the full value.
(b) All property so assessed shall be taxed in proportion to its full value. (c) All proceeds from the taxation of property shall be apportioned according to law to the districts within the counties.

Sec. 14. All property taxed by state or local government shall be assessed in the county, city, and district in which it is situated. Notwithstanding any other provision of/aw, such state or local property taxes shall be apportioned according to law to the districts within the counties.

Section 9. General Provisions
A. This Act shall be liberally construed in order to effectuate its purposes.

B. (1) In the event that this initiative measure and another initiative measure or measures relating to state or local requirements for the imposition, adoption, creation, or establishment of taxes, charges, and other revenue measures shall appear on the same statewide election ballot, the other initiative measure or measures shall be deemed to be in conflict with this measure. In the event that this initiative measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions ofthe other initiative measure or measures shall be null and void. (2) In furtherance of this provision, the voters hereby declare that this measure conflicts with the provisions of the "Housing Affordability and Tax Cut Act of 2022" and "The Tax Cut and Housing Affordability Act," both of which would impose a new state property tax (called a "surcharge") on certain real property, and where the revenue derived from the tax is provided to the State, rather than retained in the county in which the property is situated and for the use of the county and cities and districts within the county, in direct violation of the provisions of this initiative. (3) If this initiative measure is approved by the voters, but superseded in whole or in part by any other conflicting initiative measure approved by the voters at the same election, and such conflicting initiative is later held invalid, this measure shall be self-executing and given full force and effect.

C. The provisions of this Act are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this Act is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Act. The People of the State of California hereby declare that they would have adopted this Act and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not 8 declared invalid or unconstitutional without regard to whether any portion of this Act or application thereof would be subsequently declared invalid.

D. If this Act is approved by the voters of the State of California and thereafter subjected to a legal challenge alleging a violation of state or federal law, and both the Governor and Attorney General refuse to defend this Act, then the following actions shall be taken:
(1) Notwithstanding anything to the contrary contained in Chapter 6 of Part 2 of Division 3 ofTitle 2 of the Government Code or any other law, the Attorney General shall appoint independent counsel to faithfully and vigorously defend this Act on behalf of the State of California. (2) Before appointing or thereafter substituting independent counsel, the Attorney General shall exercise due diligence in determining the qualifications of independent counsel and shall obtain written affirmation from independent counsel that independent counsel will faithfully and vigorously defend this Act. The written affirmation shall be made publicly available upon request. (3) A continuous appropriation is hereby made from the General Fund to the Controller, without regard to fiscal years, in an amount necessary to cover the costs of retaining independent counsel to faithfully and vigorously defend this Act on behalf of the State of California. (4) Nothing in this section shall prohibit the proponents of this Act, or a bona fide taxpayers association, from intervening to defend this Act.
9 ATTACHMENT 4
1 RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA BARBARA IN OPPOSITION TO THE TAXPAYER

PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT
(AG# 21-0042A1).

WHEREAS, On Jan. 4, 2022, the California Business Roundtable filed the “Taxpayer Protection and Government Accountability Act” or AG# 21-0042A1. On Feb. 1, 2023, the measure qualified for the November 2024 ballot; and WHEREAS, on February 2, 2023, the Secretary of State reported that proponents of the Taxpayer Protection and Government Accountability Act submitted 1,075,585 valid signatures, thus exceeding the 997,139 valid signatures required to qualify for the November 5, 2024 ballot; and
WHEREAS, the measure creates barriers for cities to maintain and generate revenue to provide services to communities, including local infrastructure, protecting our environment, water quality, air quality, and natural resources; and WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure; and
WHEREAS, according to municipal finance experts, should the Taxpayer Protection and Government Accountability Act be passed by voters, billions of local government fee and charge revenues placed at heightened legal peril. This will result in related public service reductions across virtually every aspect of city, county, special district, and school services especially for transportation, and public facility use; and WHEREAS, hundreds of millions of dollars of annual revenues from dozens of tax and bond measures approved by voters between January 1, 2022 and November 9, 2022 subject to additional voter approval if not in compliance with the initiative; and WHEREAS, this initiative would affect the City of Santa Barbara’s ability to generate revenue that could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, harbors, affordable housing, services to support homeless residents, mental health services, and more.

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

The City of Santa Barbara opposes Initiative 21-0042A, deceivingly called the “Taxpayer Protection and Government Accountability Act,”

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Finance Committee
FROM: General Services Division, Finance Department
SUBJECT: Increase the City Administrator’s Contracting Authority and Increase the Competitive Threshold for the Purchase of Goods and Services RECOMMENDATION: That Finance Committee recommends that Council:

DISCUSSION:

Section 518 of the City Charter provides that the City Council may authorize the City Administrator to bind the City for the acquisition of equipment, materials, supplies, labor, services, or other items included within the budget approved by the City Council. The Council may also impose a monetary limit on this authority.

On September 23, 2014, the City Council granted the City Administrator the aforementioned authority with a monetary limit of $35,000 with no adjustment for inflation. Since then, the consumer price index (CPI) has grown by 33%, indicating the increased price of goods and services over the last nine years. The table below summarizes the existing signature authority of local county and city agencies as a comparison.

Agenda Item No. 3
File Code No. 120.03
Finance Committee Agenda Report
Increase the City Administrator’s Contracting Authority and Increase the Competitive Threshold for the Purchase of Goods and Services
December 5, 2023

Page 2 ends

Organization Signature Authority
County of
Santa Barbara
Services less than $200,000; No limit for competitively awarded tangible products; Public projects less than $200,000
City of Santa Cruz Supplies & services less than $100,000; Contracts for Public Works or improvements less than $100,000
County of Ventura Services less than $200,000
City of Oxnard Contracts less than $100,000 – Purchasing Agent, Public Works less than $100,000 – Public Works Director
City of Monterey
Goods & general services less than $75,000; Professional services less than $75,000; Public Works projects less than $150,000
City of Ventura
Goods & non-professional services, Public Works contracts less than $300,000 – City Manager or designee, Professional services less than $60,000 – City Manager or designee
With the above price inflation, staff recommends increasing the City Administrator’s contract authority from $35,000 to $100,000 to reflect the increased cost to purchase goods and services, to improve operational efficiencies, and to increase the authority by the Consumer Price Index (CPI) for All Urban Consumers, Los Angeles-Long Beach (Series ID CUURS49ASA0) for January 1 to December 31 rounding to the nearest $100. Increasing the City Administrator’s authority will streamline the purchasing processes without materially impacting Council’s oversight given that over 75% of contracts awarded last fiscal year were over $100,000, and less than 6% of purchase orders were awarded as sole sources. Staff will also plan to recommend changes to the authority at least every five years to ensure that it keeps pace with inflation and other economic factors.

On June 27, 2023, Council approved increasing the City Administrator’s authority to $100,000 for resolving insurance claims for damages for general liability and workers’ compensation. Increasing the contracting authority is consistent with this recent authority granted by Council.

The City last updated its bidding thresholds in 2015. Since 2015, inflation has increased by 30% and the Federal government increased its micro purchasing threshold from $3,500 to $10,000. Therefore, staff recommends increasing the market price purchase limit from $7,500 to $10,000 by adopting an ordinance updating Municipal Code section

4.52.060. Further, staff recommends amending the Municipal Code to update the threshold between the informal and formal bidding to match the $100,000 amount recommended for the City Administrator’s contracting authority.

Best Value Procurement Pilots started in 2012 for the California Community Colleges and the University of California systems and in 2014 for Caltrans (AB 1857). Since then, many California public agencies such as the City of Santa Monica, County of San Diego, UC system, and Caltrans are using Best Value as an alternative bidding method when factors Finance Committee Agenda Report
Increase the City Administrator’s Contracting Authority and Increase the Competitive Threshold for the Purchase of Goods and Services
December 5, 2023

Page 3 ends

other than cost are critical such as experience, safety record, warranties, life cycle costing, etc.

Staff recommends that Council approve adding Best Value contracting as an option to formal bidding. Adding Best Value Procurement is consistent with the City’s Vision 2030 Operations Group recommendations for Procurement Process Improvements. It is also consistent with the action taked by Council on November 7, 2023, to add a proposed measure to amend Charter Section 518 at the March 2024 election.

BUDGET/FINANCIAL INFORMATION:

No budgetary or fiscal impact is associated with this change. All City purchases made through contracts and purchase orders will need to have City Council appropriations.

ATTACHMENTS: 1. Proposed Resolution

2. Proposed Ordinance
PREPARED BY: Bill Hornung, General Services Manager
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SANTA BARBARA AUTHORIZING THE CITY

ADMINISTRATOR TO BIND THE CITY FOR THE

ACQUISITION OF CERTAIN ITEMS UP TO AN AMOUNT
OF $100,000 AND RESCINDING RESOLUTION NO. 14-
065
WHEREAS, Section 518 of the Charter of the City of Santa Barbara provides that the City Council may authorize the City Administrator to contract for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council and impose a monetary limit upon that authority; and WHEREAS, the City Council desires to increase the City Administrator’s contracting authority to $100,000;
NOW, THEREFORE, be it resolved by the City Council of the City of Santa Barbara as follows:

Section 1. The City Administrator of the City of Santa Barbara is authorized to contract for the acquisition of equipment, materials, supplies, labor, services, or other items included within the budget approved by the City Council up to a contract value of $100,000, subject to the provisions of Chapter 4.52 of the Santa Barbara Municipal Code.

The monetary limit will be increased annually commencing January 1, 2025, by the increase in Consumer Price Index (CPI) for All Urban Consumers, Los Angeles-Long Beach (Series ID CUURS49ASA0) for January 1 to December 31 rounding to the nearest $100.

Section 2. Resolution No. 14-065 is rescinded.

ATTACHMENT 1
DRAFT
ORDINANCE NO.__________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING SANTA BARBARA
MUNICIPAL CODE SECTIONS 4.52.060 AND 4.52.070

TO UPDATE MONETARY THRESHOLDS AND ADDING
SECTION 4.52.072 TO AUTHORIZE BEST VALUE

COMPETITIVE CONTRACTING FOR GOODS AND

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

SECTION 1. Section 4.52.060 of the Santa Barbara Municipal is amended to read as follows:

4.52.060 Contracts Up to $75,000.00100,000.

A. REQUISITIONS. Purchases of supplies via purchase orders or Blanket Purchase Orders, general services, and equipment, of a value up to $75,000.00100,000 shall be made pursuant to this section, except as otherwise authorized by this chapter. All departments of the City shall submit requests for equipment, supplies, routine laboratory tests, or general services to the Purchasing Agent by standard requisition request forms.

B. BIDDING PROCEDURE. Purchases of equipment, supplies, routine laboratory tests, or general services of a value of up to $75,000.00100,000, may be made by the Purchasing Agent in the open market pursuant to the bidding procedures described herein.

1. Purchases of up to $7,500.0010,000. Purchases of goods or services of a value up to $7,500.0010,000 may be made without competitive bidding.

2. Purchases over $7,500.00100,000 and up to $75,000.00100.000. Purchases of goods or services of a value over $7,500.0010,000 and up to $75,000.00100,000 shall be bid in the following manner:

ATTACHMENT 2
DRAFT
a. Minimum Number of Quotations. Purchases shall whenever possible be based on at least three quotations, and shall be awarded to the person submitting the lowest responsible quotation.
b. Notice Inviting Quotations. The Purchasing Agent shall solicit quotations by written requests to prospective vendors or by telephone.
c. Written quotations shall be submitted to the Purchasing Agent who shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders.

C. WRITTEN QUOTATIONS. All quotations over $2,500.00 must be in writing.

D. AWARD OF CONTRACTS BY PURCHASING AGENT. The Purchasing Agent is authorized to award contracts to the lowest responsible bidder when the City Council has approved a departmental budget that includes funds specifically for the purchase of the item(s) and the amount of the award is not more than the budgeted amount.

E. TIE QUOTATIONS. If two or more quotes received are for the same total amount or unit price, quality, service and delivery being equal, the Purchasing Agent may award a contract: after negotiation with the vendors submitting equivalent quotations; giving preference to the local vendor (maintains a business within the City limits); or by lottery when tied vendors are not local or all are local.

F. PERFORMANCE SECURITY. The Purchasing Agent shall have the authority to require a performance security before entering into a contract in such amount as he or she finds reasonably necessary to protect the best interests of the City. If the Purchasing Agent requires a performance security, the form and amount of the security shall be described in the terms, conditions or general provisions of bid documents.

DRAFT
G. SOLE SOURCE PURCHASES. Except when the purchase amount is within the monetary authority delegated to the City Administrator, purchases of goods or services which can be obtained from only one source may be made by the Purchasing Agent without advertising and after a determination by the City Council that the goods or services are only available from one source, and approval of the purchase by the City Council. Purchases within the monetary authority delegated to the City Administrator by the City Council, which can be obtained from only one source may be made by the City Administrator without advertising after a determination that the goods or services are only available from one source and the City Administrator may approve the purchase.

H. BEST INTEREST WAIVER. The City Council may authorize purchase of equipment, supplies, and general services without complying with the above procedures when, in the opinion of the Council, compliance with the procedure is not in the best interest of the City. For purchases within the monetary authority delegated to the City Administrator by the City Council, the City Administrator may authorize purchase of equipment, supplies, and general services without complying with the above procedures when, in the opinion of the City Administrator, compliance with the procedure is not in the best interest of the City.

I. ENCUMBRANCE OF FUNDS. Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for equipment, supplies, or services for which there is an insufficient appropriation in the budgetary account against which said purchase is to be charged.

SECTION 2. Section 4.52.070 of the Santa Barbara Municipal is amended to read as follows:

DRAFT

4.52.070 Formal ContractBidding Procedures (Purchases Greater than $75,000.00100,000).

A. REQUISITION. Purchases of supplies via purchase orders or Blanket Purchase Orders, general services, and equipment, of a value greater than $75,000.00100,000 shall be made pursuant to this section, except as otherwise authorized by this chapter.

All departments of the City shall submit requests for equipment, supplies, and general services to the Purchasing Agent by standard City requisition forms.

B. NOTICE INVITING BIDS. The Purchasing Agent shall issue a notice inviting bids that includes a general description of the articles to be purchased or the services sought, states where the bid forms and specifications may be secured, and announces the time and place for opening bids.

1. Notice. Notices inviting bids shall be publicly advertised not less than 14 days before the date of opening of bids by at least one of the following methods:
a. Publication at least once in a newspaper of general circulation published in the City; b. Publication in an electronic bidding system established by the Purchasing Agent; c. Distribution in such other manner determined by the Purchasing Agent to be appropriate under the circumstances.

2. Upon advertisement as provided in subsection (B)(1) above, notices inviting bids shall be publicly accessible through a link posted on the City’s webpage.

3. Bidders’ List. The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on the City’s bidders’ list or who have requested their names to be added thereto.

DRAFT
C. BIDDERS’ SECURITY. When deemed necessary by the Purchasing Agent, bidders’ security may be required. Bidders shall be entitled to a return of bid security upon execution of the contract or upon the re-advertisement for bids, provided that the successful bidder shall forfeit his or her bid security upon refusal or failure to execute the contract within 10 days after notice of contract has been deposited in the United States mail. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest responsible bidder, the bidder first awarded the contract shall forfeit only the portion of his or her security which is equal to the difference between his or her bid and the bid of the next lowest responsible bidder. If the next lowest responsible bidder is awarded the contract, he or she shall forfeit his or her bid security if he or she fails or refuses to execute the contract.

D. BID OPENING PROCEDURE. Bids may be submitted in physical form or electronically through an electronic bidding platform established by the Purchasing Agent, as specified in the notice inviting bids. Bids shall be submitted in a manner that conceals the bid until the time of opening of all bids. Bids shall be opened at a location open to the public at the time and place stated on the notice inviting bids or as may otherwise be announced to all bidders. A tabulation of all bids received shall be open for public inspection during regular City business hours for a period of not less than 30 calendar days after the bid opening. The manner of submission and the time and location of bid opening shall be stated in the notice inviting bids.

E. REJECTION OF BIDS. In its discretion, the City Council may reject any and all bids presented and re-advertise for bids pursuant to the procedure described herein. In cases DRAFT
where the Purchasing Agent is authorized to award a contract, the Purchasing Agent may, in his or her discretion, reject any and all bids presented and re-advertise for bids pursuant to the procedure described herein.

F. AWARD OF CONTRACTS. Contracts shall be awarded by the City Council to the lowest responsible bidder who submits a bid responsive to the specifications except as otherwise provided herein.

G. AWARD OF CONTRACTS BY PURCHASING AGENT. The Purchasing Agent is authorized to award contracts to the lowest responsible bidder when the City Council has approved a Departmental budget that includes funds specifically for the purchase of the item(s) and the amount of the award is not more than the budgeted amount.

H. TIE BIDS. If two or more bids received are for the same total amount or unit price, quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council shall award a contract: after negotiation with the bidders who were tied at the time of the bid opening; giving preference the local bidder (maintains a business within the City limits); or by lottery when tied bidders are not local or all are local.

I. NO BIDS RECEIVED. If no bids are received within 10 days of the publication of the notice inviting bids or such other time specified in the notice inviting bids for the receipt of bids, the Purchasing Agent may either publish a new notice inviting bids or solicit bids without further publication.

J. PERFORMANCE SECURITY. The Purchasing Agent shall have the authority to require a performance security before entering into a contract in such amount as he or she shall find reasonably necessary to protect the best interests of the City. If the DRAFT
Purchasing Agent requires a performance security, the form and amount of the security shall be described in the terms, conditions or general provisions of bid documents.

K. SOLE SOURCE PURCHASES. Purchases of goods or services which can be obtained from only one source may be made by the Purchasing Agent without advertising and after a determination by the City Council that the goods or services are only available from one source and approval of the purchase by the City Council.

L. BEST INTEREST WAIVER. The City Council may authorize purchase of equipment, supplies, and general services without complying with the above procedures when, in the opinion of the Council, compliance with the procedure is not in the best interest of the City.

M. ENCUMBRANCE OF FUNDS. Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for equipment, supplies, or services for which there is an insufficient appropriation in the budgetary account against which said purchase is to be charged
SECTION 3. Chapter 4.52 of the Santa Barbara Municipal is amended by adding Section 4.52.072 to read as follows

4.52.072 Best Value / Competitive Negotiation
A. In addition to procurement under Section 4.52.070, general services having a estimated contract value greater than $100,000 may be let under best value or competitive negotiation procurement procedures established by the Purchasing Agent whenever the City Administrator determines it to be in the best interest of the City.

B. The procedures established by the Purchasing Agent must meet the following minimum requirements:

DRAFT

1. The Purchasing Agent will solicit formal proposals. Notice of request for proposals must be posted for not less than 30 days on the City’s website and may be given in any other manner determined by the Purchasing Agent to be appropriate for the project. The request for proposals must: specify the date, time, and place for submission of proposals; contain a description of the project and the location where plans and specifications for the project may be obtained; contain a description of the information to be submitted by each proposer: contain the factors for evaluation of each proposal including the relative weight to be given to each factor.

2. In addition to price, the factors for selection of a successful proposer may include the following:
a. Demonstrated experience performing the same or similar work; b. Experience of core personnel to be assigned to the project; c. Financial condition and stability;
d. Successful performance of the same or similar work;
e. Prior record of performance on projects for the City; f. History of compliance with local, state, and federal laws, regulations, and policies governing public contracts;
g. Proposed quality control and quality assurance plan for the scope of work; h. Proposed performance plan and schedule for the scope of work; i. Other factors the Purchasing Agent deems relevant to obtaining the best value for the City.

DRAFT

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Finance Committee
FROM: Accounting Division, Finance Department
SUBJECT: Fiscal Year 2024 First-Quarter Review
RECOMMENDATION: That Finance Committee:

DISCUSSION:

Each month, staff presents interim financial statements (Attachment 1) showing the status of revenues and expenditures in relation to budget for City Funds. Each quarter, the interim financial statements are expanded to include a detailed analysis of General Fund and Enterprise Funds (Attachment 2).

In addition to the Q1 budget analysis, staff proposes recommended budget adjustments for City Council approval. These adjustments are the result of new information and/or unanticipated events that occurred since the adoption of the budget in June 2023. A listing and description of each proposed FY2024 adjustment is provided in Attachment 3.

Due to economic uncertainties articulated in the FY2024 adopted budget, a required budget reduction plan of $2.7 Million was implemented and allocated amongst all General Fund departments. All budget reduction targets that were instituted are projected to be met by the end of the fiscal year.

The table below summarizes the General Fund revenue and expenditure budget including actuals through Q1. The total adopted revenue budget is $171.7 Million and the total adopted expenditure budget is $174.6 Million, resulting in an operating deficit of Agenda Item No. 4
File Code No. 120.03
Finance Committee Agenda Report
Fiscal Year 2024 First-Quarter Review
December 5, 2023

Page 2 ends

approximately $2.9 Million. The revised budget includes additional expenditures from encumbrances carried forward from prior year contractual commitments, along with any City Council approved adjustments since beginning of the year. There are still several pending adjustments that will have an impact on the bottom line, however, the overall Q1 result is substantivelycorrect and will only show minor changes moving forward. Q1 adjustments are also not represented in the tables below:

GENERAL
FUND
FY2024

ADOPTED
BUDGET
FY2024

REVISED
BUDGET
Q1

ACTUALS
FY2024

PROJECTION

ACTUALS

PERCENT

OF REVISED
BUDGET
Revenues $172,636,505 $171,833,233 $31,391,394 $171,833,233 18.2% Expenditures 175,538,984 184,431,387 40,266,410 184,431,386 21.9% Surplus/(Deficit) ($2,902,479) ($12,598,154) ($8,875,015) ($12,598,153) The table below summarizes the Measure C sales tax revenue and expenditure budget including actuals through Q1. The FY2024 adopted budget called for additional project expenditures using Measure C utilizing revenues received from prior fiscal years as well.

MEASURE C
FY2024

ADOPTED
BUDGET
FY2024

REVISED
BUDGET
Q1 ACTUALS FY2024

PROJECTION

ACTUALS

PERCENT OF

REVISED
BUDGET
Revenues $31,900,000 $31,900,000 $7,887,470 $31,900,000 24.7% Expenditures 46,837,855 46,837,855 11,709,464 46,837,855 25.0% Surplus/(Deficit) ($14,937,855) ($14,937,855) ($3,821,994) ($14,937,855) Revenues from tax is 18% of the budget or $26.5 Million. Property taxes are typically received at the beginning of November and February. A 4.3% growth in property tax revenue is projected for this year. Based on the latest estimates provided by the County, the City will likely receive an additional $1.7 Million, 3.6% above budget. Staff are projecting a $2.9 Million deficit in the General Fund when factoring in expenditure budgets for actions taken by the City Council during FY2023 and for commitments into FY2024.

ATTACHMENTS: 1. Summary by Fund Statement of Revenues and Expenditures for Three Months Ended September 30, 2023

2. Interim Financial Statements for Three Months Ended
September 30, 2023 (Narrative Analysis)

3. Schedule of Proposed First Quarter Adjustments
PREPARED BY: Nathalie Lecolley, Controller
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
ATTACHMENT 1
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
GENERAL FUND (pages 3-7)
Revenue 171,833,233 31,391,395 503 140,442,340 18.3% 31,773,827 Expenditures 184,431,386 40,266,409 6,909,594 137,255,383 25.6% 35,021,279 Addition to / (use of) reserves (12,598,153) (8,875,013) (6,909,091) (3,247,452) MEASURE C (pages 3-7)
Included in GF su
Revenue 31,900,000 7,887,470 - 24,012,530 24.7% 8,104,704 Expenditures 46,837,855 11,709,464 - 35,128,391 25.0% 7,099,853 Addition to / (use of) reserves (14,937,855) (3,821,994) - 1,004,851 SOLID WASTE FUND (page 9)
Revenue 38,291,420 9,558,367 - 28,733,053 25.0% 8,431,160 Expenditures 38,621,250 7,466,978 16,418,711 14,735,562 61.8% 6,219,736 Addition to / (use of) reserves (329,830) 2,091,389 (16,418,711) 2,211,424 WATER OPERATING FUND (page 10)
Revenue 74,712,846 18,389,604 - 56,323,242 24.6% 18,491,656 Expenditures 77,359,032 14,983,434 8,781,714 53,593,884 30.7% 13,758,305 Addition to / (use of) reserves (2,646,186) 3,406,170 (8,781,714) 4,733,351 WASTEWATER OPERATING FUND (page 11)
Revenue 29,143,452 7,161,728 - 21,981,724 24.6% 6,780,995 Expenditures 30,394,347 5,546,748 3,417,883 21,429,716 29.5% 5,218,368 Addition to / (use of) reserves (1,250,895) 1,614,980 (3,417,883) 1,562,627 DOWNTOWN PARKING FUND (page 12)
Revenue 11,363,643 2,564,425 - 8,799,218 22.6% 2,408,266 Expenditures 12,011,205 2,609,843 1,716,288 7,685,075 36.0% 2,186,189 Addition to / (use of) reserves (647,562) (45,417) (1,716,288) 222,076 AIRPORT OPERATING FUND (page 13)
Revenue 29,944,075 6,356,152 - 23,587,923 21.2% 6,332,773 Expenditures 31,223,042 6,215,794 3,607,951 21,399,297 31.5% 5,555,445 Addition to / (use of) reserves (1,278,967) 140,358 (3,607,951) 777,329 GOLF COURSE FUND (page 14)
Revenue 4,206,765 1,370,268 - 2,836,497 32.6% 1,247,974 Expenditures 3,788,996 715,919 2,578,320 494,757 86.9% 697,744 Addition to / (use of) reserves 417,769 654,350 (2,578,320) 550,230 FACILITIES MANAGEMENT FUND (page 15)
Revenue 7,296,218 1,715,288 - 5,580,930 23.5% 1,703,976 Expenditures 7,592,543 1,614,563 521,040 5,456,940 28.1% 1,527,523 Addition to / (use of) reserves (296,325) 100,725 (521,040) 176,454

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

Page 1 ends

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

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For One Month Ended September 30, 2023 ( 25% of Fiscal Year) FLEET REPLACEMENT FUND (page 16)
Revenue 5,387,373 1,453,442 - 3,933,931 27.0% 1,035,442 Expenditures 7,837,741 99,051 1,919,196 5,819,494 25.8% 78,355 Addition to / (use of) reserves (2,450,368) 1,354,391 (1,919,196) 957,087 FLEET MAINTENANCE FUND (page 17)
Revenue 3,282,335 803,933 - 2,478,401 24.5% 831,317
Expenditures 3,559,810 827,842 404,927 2,327,041 34.6% 709,455 Addition to / (use of) reserves (277,475) (23,908) (404,927) 121,862 SELF INSURANCE TRUST FUND (page 18)
Revenue 17,330,117 4,404,957 - 12,925,160 25.4% 3,255,512 Expenditures 20,103,670 3,323,497 1,086,240 15,693,934 21.9% 2,654,396 Addition to / (use of) reserves (2,773,553) 1,081,460 (1,086,240) 601,116 INFORMATION TECHNOLOGY FUND (page 19)
Revenue 6,537,548 1,584,138 - 4,953,410 24.2% 1,259,501 Expenditures 6,718,420 1,889,869 146,590 4,681,961 30.3% 1,430,710 Addition to / (use of) reserves (180,872) (305,731) (146,590) (171,209) WATERFRONT OPERATING FUND (page 20)
Revenue 19,027,470 5,731,416 - 13,296,054 30.1% 5,340,214 Expenditures 19,337,385 4,702,127 1,328,654 13,306,604 31.2% 4,490,943 Addition to / (use of) reserves (309,915) 1,029,289 (1,328,654) 849,271 SANTA BARBARA CLEAN ENERGY FUND (page 21)
Revenue 47,660,583 7,811,477 - 39,849,106 16.4% 5,647,233 Expenditures 39,580,699 3,491,100 1,526,062 34,563,537 12.7% 3,548,853 Addition to / (use of) reserves 8,079,884 4,320,376 (1,526,062) 2,098,380 ENERGY AND CLIMATE MANAGEMENT FUND (page 22)
Revenue 3,078,032 730,238 - 2,347,794 23.7% 638,142
Expenditures 3,607,296 585,189 292,565 2,729,542 24.3% 412,782 Addition to / (use of) reserves (529,264) 145,049 (292,565) 225,360

TOTAL FOR ALL FUNDS
Revenue 500,995,110 108,914,299 503 392,081,314 21.7% 103,282,692 Expenditures 533,004,678 106,047,825 50,655,736 376,301,118 29.4% 90,609,936 Addition to / (use of) reserves (32,009,568) 2,866,474 (50,656,239) 12,672,756 ** It is City policy to adopt a balanced budget. In most cases, encumbrance balances exist at year-end. These encumbrance balances are obligations of each fund and must be reported at the beginning of each fiscal year. In addition, a corresponding appropriations entry must be made in order to accommodate the 'carried-over' encumbrance amount. Most differences between budgeted annual revenues and expenses are due to these encumbrance carryovers.

Page 2 ends

Revised YTD Remaining Percent Previous Change Over
Budget Actual Balance Received YTD Prior Year
TAXES
Sales and Use 30,650,000 7,646,268 23,003,732 24.9% 7,408,720 3.2% Measure C Sales Tax 31,900,000 7,887,470 24,012,530 24.7% 8,104,704 -2.7% Property Taxes 46,371,460 - 46,371,460 0.0% - 0.0%
Utility Users Tax 7,375,415 1,853,273 5,522,142 25.1% 2,138,098 -13.3% Transient Occupancy Tax 27,414,000 8,485,664 18,928,336 31.0% 9,047,587 -6.2% Business License 2,850,000 174,517 2,675,483 6.1% 506,812 -65.6% Cannabis Excise Tax 1,518,910 261,188 1,257,722 17.2% 368,558 -29.1% Real Property Transfer Tax 1,200,000 224,250 975,750 18.7% 294,470 -23.8% Total Tax Revenues 149,279,785 26,532,628 122,747,157 17.8% 27,868,950 -4.8%

LICENSES & PERMITS
Licenses & Permits 233,310 44,753 188,557 19.2% 39,539 13.2% Total 233,310 44,753 188,557 19.2% 39,539 13.2%

FINES & FORFEITURES
Police 2,346,201 386,234 1,959,967 16.5% 276,092 39.9%
Other Fines & Forfeitures 664,600 53,808 610,792 8.1% 297,607 -81.9% Total 3,010,801 440,042 2,570,759 14.6% 573,699 -23.3%

USE OF MONEY & PROPERTY
Investment Income 1,456,485 477,284 979,201 32.8% 246,429 93.7% Rents & Concessions 1,584,288 345,317 1,238,971 21.8% 376,270 -8.2% Total 3,040,773 822,601 2,218,172 27.1% 622,700 32.1%

INTERGOVERNMENTAL
Library 943,479 19,631 923,847 2.1% 16,454 19.3%
Fire 1,500,000 3,442 1,496,558 0.2% 19,123 -82.0%
Other Intergovernmental 565,734 154,550 411,184 27.3% 50,690 204.9% Total 3,009,213 177,624 2,831,588 5.9% 86,267 105.9%

FEES & SERVICE CHARGES
Community Development 7,101,000 1,818,861 5,282,139 25.6% 1,866,861 -2.6% Parks & Recreation 4,400,928 1,747,628 2,653,300 39.7% 1,524,955 14.6% Other Service Charges 2,749,281 752,225 1,997,056 27.4% 1,198,461 -37.2% Total 14,251,209 4,318,714 9,932,495 30.3% 4,590,277 -5.9%

OTHER REVENUES
Interfund Charges & Reimbursemen 13,289,997 3,262,678 10,027,319 24.5% 2,594,714 25.7% Overhead Indirect Allocations 9,380,779 2,313,517 7,067,262 24.7% 2,402,595 -3.7% Interfund Transfers 270,000 58,734 211,266 21.8% 124,034 -52.6% Interfund Loans 24,140 - 24,140 0.0% 6,035 -100.0%
Miscellaneous 1,374,847 285,639 1,089,208 20.8% 21,742 1213.8% Donations 110,509 766 109,744 0.7% 724 5.8%
Franchise Fees 6,457,869 1,021,168 5,436,701 15.8% 947,256 7.8% Total 30,908,141 6,942,503 23,965,639 22.5% 6,097,099 13.9% Subtotal Non-Tax Revenues 54,453,448 12,746,237 41,707,210 23.4% 12,009,581 6.1% TOTAL REVENUES 203,733,233 39,278,866 164,454,367 19.3% 39,878,531 -1.5%

CITY OF SANTA BARBARA
General Fund
Interim Statement of Budgeted and Actual Revenues
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

Page 3 ends

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

GENERAL GOVERNMENT
Mayor & City Council
MAYOR & CITY COUNCIL 1,153,795 265,231 2,936 885,628 23.2% 234,980 ARTS AND COMMUNITY PROMOTIONS 2,251,993 355,896 836,813 1,059,284 53.0% 423,679 Total 3,405,788 621,127 839,749 1,944,912 42.9% 658,659 City Attorney
CITY ATTORNEY 67,375 16,844 - 50,531 25.0% -
CITY ATTORNEY-ADMINISTRATION 1,340,439 239,904 203,853 896,682 33.1% CITY ATTORNEY-ADVISORY 1,520,824 314,959 22,100 1,183,765 22.2% 348,942 CITY ATTORNEY-CIVIL LITIGATION 1,701,377 313,513 - 1,387,864 18.4% 288,011 CITY ATTORNEY-CODE ENFORCEMENT 1,877,769 129,769 35,000 1,713,000 8.8% 95,502 Total 6,507,784 1,014,990 260,953 5,231,842 19.6% 732,456 Administration
CITY ADMINISTRATOR 2,590,934 519,423 158,406 1,913,105 26.2% 466,272 EMPLOYEE RELATIONS 2,857 714 - 2,143 25.0% -
CITY TV 656,271 121,839 39,618 494,813 24.6% 166,690
CITY CLERK 812,245 170,203 46,433 595,609 26.7% 147,020 Total 4,062,306 812,179 244,457 3,005,670 26.0% 779,981 Human Resources
HUMAN RESOURCES 2,453,643 530,263 297,547 1,625,833 33.7% 458,690 EMPLOYEE RELATIONS 348,635 89,309 74,550 184,775 47.0% 61,685 EMPLOYEE DEVELOPMENT 90,234 5,513 3,621 81,100 10.1% 4,461 Total 2,892,512 625,085 375,718 1,891,708 34.6% 524,836 Finance
ADMINISTRATION 346,675 80,239 483 265,953 23.3% 69,719
REVENUE & CASH MANAGEMENT 983,660 138,047 39,282 806,331 18.0% 145,998 CASHIERING & COLLECTION 773,844 142,889 - 630,955 18.5% 131,803 LICENSES & PERMITS 982,237 143,254 264,708 574,275 41.5% 132,718 BUDGET MANAGEMENT 895,252 157,422 9,401 728,429 18.6% 128,032 ACCOUNTING 1,086,039 248,760 75,644 761,635 29.9% 242,881 Miscellaneous 477,161 117,295 - 359,866 24.6% 111,487
ACCOUNTS PAYABLE 262,472 65,347 16,450 180,675 31.2% 66,395 CITY BILLING & CUSTOMER SERVICE 906,178 175,931 - 730,247 19.4% 139,234 PURCHASING 775,791 190,034 103 585,654 24.5% 197,335
CENTRAL WAREHOUSE 224,348 49,428 - 174,920 22.0% 61,965 MAIL SERVICES 173,614 35,910 5,654 132,051 23.9% 35,696 Total 7,887,271 1,544,557 411,725 5,930,990 24.8% 1,463,262 TOTAL GENERAL GOVERNMENT 24,755,661 4,617,938 2,132,602 18,005,121 27.3% 4,159,193 `
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

Page 4 ends

YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
`
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

PUBLIC SAFETY
Police
CHIEF'S STAFF 2,595,149 619,641 35,222 1,940,286 25.2% 295,231 BUSINESS OFFICE 948,093 173,610 1,584 772,899 18.5% 133,154 RECORDS BUREAU 2,124,211 403,521 2,986 1,717,703 19.1% 376,461 STRATEGIC OPERATIONS AND PERSONNEL 1,501,653 411,266 6,610 1,083,777 27.8% 432,445 PROPERTY ROOM 289,940 64,996 - 224,944 22.4% 62,511
TRAINING, RECRUITMENT AND WELLNESS 4,532,964 561,003 162,671 3,809,290 16.0% 405,950 RANGE AND EQUIPMENT 2,873,961 445,292 933,564 1,495,105 48.0% 368,465 COMMUNITY & MEDIA RELATIONS 213,986 39,238 - 174,748 18.3% 37,038 INFORMATION TECHNOLOGY/CRIME ANALYSIS 1,866,758 547,811 220,123 1,098,825 41.1% 529,677 CRIMINAL INVESTIGATIONS & INTERNAL OP'S 8,357,836 1,439,121 5,173 6,913,542 17.3% 1,328,790 CRIME LAB 192,961 41,635 - 151,326 21.6% 36,213
FIELD OPERATIONS DIVISION 24,047,070 5,041,796 33,950 18,971,324 21.1% 4,794,096 TRAFFIC 945,346 202,606 18,014 724,726 23.3% 120,286
SPECIAL EVENTS 663,763 375,048 26,636 262,079 60.5% 297,076 STREET CRIMES UNIT 2,423,619 359,286 - 2,064,333 14.8% 358,839 SPECIAL ENFORCEMENT TEAM 426,323 31,059 - 395,264 7.3% 57,100 PARKING AND STREET SWEEPING 491,120 67,941 - 423,179 13.8% 104,358 PARKING ENFORCEMENT 1,068,289 127,763 - 940,526 12.0% 190,105 COMBINED COMMUNICATIONS CENTER 3,769,483 914,251 - 2,855,232 24.3% 791,533 ANIMAL CONTROL 1,034,843 127,546 508,334 398,963 61.4% 101,997 Total 60,367,368 11,994,432 1,954,867 46,418,069 23.1% 10,821,326 Fire
ADMINISTRATION 1,681,732 440,627 - 1,241,105 26.2% 287,382 EMERGENCY SERVICES AND PUBLIC ED 437,760 98,256 - 339,503 22.4% 114,685 PREVENTION 1,511,797 323,416 525 1,187,856 21.4% 304,012 WILDLAND FIRE MITIGATION PROGRAM 975,722 139,927 25,089 810,706 16.9% 86,422 OPERATIONS 25,911,035 6,923,947 74,293 18,912,795 27.0% 6,438,651 TRAINING AND RECRUITMENT 951,609 212,724 7,920 730,965 23.2% 169,810 ARFF 3,164,463 851,963 - 2,312,500 26.9% 769,241
Total 34,634,116 8,990,859 107,826 25,535,431 26.3% 8,170,204 TOTAL PUBLIC SAFETY 95,001,485 20,985,291 2,062,693 71,953,500 24.3% 18,991,530

PUBLIC WORKS
Public Works
ADMINISTRATION 1,728,007 360,681 15,785 1,351,541 21.8% 311,608 ENGINEERING SVCS 9,014,644 1,802,407 41,615 7,170,622 20.5% 1,312,839 PUBLIC RT OF WAY MGMT 2,112,717 443,484 28,282 1,640,951 22.3% 369,724 ENVIRONMENTAL PROGRAMS 182,969 10,411 72,316 100,242 45.2% 88,255 WATER RESOURCES 25,569 6,392 - 19,177 25.0% -
Total 13,063,906 2,623,375 157,999 10,282,533 21.3% 2,082,427 TOTAL PUBLIC WORKS 13,063,906 2,623,375 157,999 10,282,533 21.3% 2,082,427

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COMMUNITY SERVICES
Parks & Recreation
REC PROGRAM MGMT 1,381,894 314,445 20,016 1,047,433 24.2% 219,465 FACILITIES & SPECIAL EVENTS 2,090,050 437,720 299,273 1,353,057 35.3% 347,893 YOUTH ACTIVITIES 1,611,551 455,651 9,139 1,146,761 28.8% 481,396 ACTIVE ADULTS 1,039,085 292,930 6,344 739,811 28.8% 262,193 AQUATICS 1,953,262 762,356 40,781 1,150,125 41.1% 683,552 SPORTS 881,635 261,522 152,188 467,925 46.9% 189,395
TENNIS 580,339 132,054 158,795 289,491 50.1% 111,278
NEIGHBORHOOD & OUTREACH SERV 1,296,583 279,956 16,745 999,881 22.9% 257,102 ADMINISTRATION 1,474,716 320,633 858 1,153,226 21.8% 270,739 PROJECT MANAGEMENT TEAM 878,707 178,742 20,929 679,036 22.7% 145,488 PARK OPERATIONS MANAGEMENT 1,250,419 283,767 5,115 961,536 23.1% 232,913 GROUNDS & FACILITIES MAINTENANCE 6,783,208 1,454,470 223,118 5,105,620 24.7% 1,312,741 FORESTRY 1,984,435 368,367 91,736 1,524,332 23.2% 324,865 BEACH MAINTENANCE 176,154 46,094 17,675 112,385 36.2% 27,477 MEDIANS PARKWAYS & CONTRACTS 551,350 120,055 235,620 195,676 64.5% 110,836 Total 23,933,387 5,708,760 1,298,333 16,926,294 29.3% 4,977,335 Library
ADMINISTRATION 1,086,543 219,610 253 866,680 20.2% 245,949 CENTRAL LIBRARY 5,711,149 1,090,214 91,781 4,529,155 20.7% 1,145,827 EASTSIDE LIBRARY 671,927 81,703 3,773 586,451 12.7% 68,670 LIBRARY ON THE GO 279,290 34,404 - 244,886 12.3% 26,957 ADULT EDUCATION 368,863 71,856 - 297,007 19.5% 7,105
Total 8,117,772 1,497,786 95,807 6,524,179 19.6% 1,494,508 TOTAL COMMUNITY SERVICES 32,051,159 7,206,547 1,394,139 23,450,473 26.8% 6,471,842

COMMUNITY DEVELOPMENT
Community Development
ADMINISTRATION 2,295,105 478,774 58,914 1,757,417 23.4% 480,925 RENTAL HOUSING MEDIATION 353,565 73,374 309 279,882 20.8% 70,142 HUMAN SERVICES 984,325 177,067 594,421 212,837 78.4% 5,628 LONG RANGE PLAN & SPEC STUDY 1,064,257 232,662 1,011 830,584 22.0% 221,214 DEVEL & ENVIRONMENTAL REVIEW 1,897,314 368,274 27,234 1,501,806 20.8% 348,219 ZONING INFO & ENFORCEMENT 1,678,785 308,853 13,746 1,356,185 19.2% 314,092 DESIGN REV & HIST PRESERVATION 1,708,212 351,962 3,182 1,353,069 20.8% 342,273 BLDG INSP & CODE ENFORCEMENT 1,947,325 399,150 59,453 1,488,722 23.6% 295,181 RECORDS ARCHIVES & CLER SVCS 759,957 170,552 38,134 551,271 27.5% 152,276 BLDG COUNTER & PLAN REV SVCS 2,877,157 540,828 317,592 2,018,736 29.8% 461,392 CODE COMPLIANCE 972,361 192,917 175 779,269 19.9% 121,619 Total 16,538,362 3,294,413 1,114,171 12,129,778 26.7% 2,812,961 TOTAL COMMUNITY DEVELOPMENT 16,538,362 3,294,413 1,114,171 12,129,778 26.7% 2,812,961

Page 6 ends

SUSTAINABILITY AND RESILIENCE
Sustainability and Resilience
ADMINISTRATION 58,635 1,452 47,990 9,193 84.3% 29,237
ABATEMENT 569,036 34,077 - 534,959 6.0% -
Total 627,671 35,530 47,990 544,151 13.3% 29,237
TOTAL SUSTAINABILITY AND RESILIENCE 627,671 35,530 47,990 544,151 13.3% 29,237

NON-DEPARTMENTAL
Non-Departmental
ANTICIPATED SALARY SAVINGS (6,000,000) - - (6,000,000) 0.0% - MEASURE C SALES TAX 46,837,855 11,709,464 - 35,128,391 25.0% 7,099,853 TRANSFERS OUT 4,228,142 175,725 - 4,052,417 4.2% 214,686 CAPITAL OUTLAY TRANSFER 3,945,000 1,327,591 - 2,617,409 33.7% 259,403 APPROP. RESERVE 220,000 - - 220,000 0.0% -
Total 49,230,997 13,212,780 - 36,018,217 26.8% 7,573,942 TOTAL NON-DEPARTMENTAL 49,230,997 13,212,780 - 36,018,217 26.8% 7,573,942 TOTAL EXPENDITURES 231,269,241 51,975,872 6,909,594 172,383,774 25.5% 42,121,132 ** The legal level of budgetary control is at the department level for the General Fund. Therefore, as long as the department as a whole is within budget, budgetary compliance has been achieved. The City actively monitors the budget status of each department and takes measures to address potential over budget situations before they occur.

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

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Budget Actual brances Balance Budget YTD

TRAFFIC SAFETY FUND
Revenue 245,000 49,477 - 195,523 20.2% 17,131
Expenditures 245,000 49,477 - 195,523 20.2% 17,131
Revenue Less Expenditures - - - - -

CREEK RESTORATION/WATER QUALITY IMPRVMT
Revenue 6,047,071 1,852,443 - 4,194,628 30.6% 1,858,445 Expenditures 6,690,726 1,254,501 835,350 4,600,874 31.2% 914,071 Revenue Less Expenditures (643,655) 597,942 (835,350) (406,246) 944,374

COMMUNITY DEVELOPMENT BLOCK GRANT
Revenue 2,103,297 214,555 - 1,888,741 10.2% 44,835
Expenditures 2,092,104 111,104 334,649 1,646,351 21.3% 85,732 Revenue Less Expenditures 11,193 103,451 (334,649) 242,391 (40,897)

COUNTY LIBRARY
Revenue 222,458 252 - 222,206 0.1% 844
Expenditures 492,344 85,779 3,104 403,461 18.1% 89,226
Revenue Less Expenditures (269,886) (85,527) (3,104) (181,255) (88,383)

STREETS FUND
Revenue 13,231,712 2,662,730 - 10,568,982 20.1% 3,187,807 Expenditures 14,407,840 3,760,610 152,226 10,495,004 27.2% 2,958,996 Revenue Less Expenditures (1,176,128) (1,097,880) (152,226) 73,978 228,811

MEASURE A FUND
Revenue 5,298,579 977,743 - 4,320,836 18.5% 1,016,980
Expenditures 6,153,018 1,514,727 508,909 4,129,382 32.9% 1,019,870 Revenue Less Expenditures (854,439) (536,984) (508,909) 191,454 (2,890)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Special Revenue Funds
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

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Budget Actual brances Balance Budget YTD

REVENUES
Service charges 37,623,904 9,351,985 - 28,271,919 24.9% 8,374,994 Other Fees & Charges 355,650 11,744 - 343,906 3.3% 9,133 Investment Income 130,300 42,818 - 87,482 32.9% 20,956
Grants 152,678 151,250 - 1,428 99.1% 23,279
Miscellaneous 28,888 569 - 28,319 2.0% 2,799
TOTAL REVENUES 38,291,420 9,558,367 - 28,733,053 25.0% 8,431,160

EXPENSES
Salaries & Benefits 2,021,072 410,117 - 1,610,955 20.3% 320,052 Materials, Supplies & Services 34,921,143 6,960,529 16,054,819 11,905,795 65.9% 5,814,317 Special Projects 1,292,874 81,209 249,901 961,764 25.6% 37,020 Transfers-Out 50,000 12,500 - 37,500 25.0% 12,500
Capital Outlay Transfers - - - - 0.0% 243
Equipment 272,744 2,622 113,991 156,131 42.8% 35,604
Other 40,000 - - 40,000 0.0% -
Appropriated Reserve 23,417 - - 23,417 0.0% -
TOTAL EXPENSES 38,621,250 7,466,978 16,418,711 14,735,562 61.8% 6,219,736 Revenue Less Expense (329,830) 2,091,389 (16,418,711) 13,997,492 2,211,424

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

SOLID WASTE FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Water Sales- Metered 61,627,176 16,269,685 - 45,357,491 26.4% 16,888,815 Service Charges 251,460 67,250 - 184,210 26.7% 91,534
Cater JPA Treatment Charges 2,400,000 (174) - 2,400,174 0.0% - Investment Income 1,915,150 602,498 - 1,312,652 31.5% 327,873 Grants - 15,212 - (15,212) 0.0% -
Reimbursements 8,386,167 1,281,568 - 7,104,599 15.3% 1,162,722 Miscellaneous 132,893 153,565 - (20,672) 115.6% 20,713
TOTAL REVENUES 74,712,846 18,389,604 - 56,323,242 24.6% 18,491,656

EXPENSES
Salaries & Benefits 14,359,118 3,159,563 - 11,199,555 22.0% 2,880,459 Materials, Supplies & Services 26,552,284 3,838,505 8,609,152 14,104,627 46.9% 3,224,198 Special Projects 840,997 28,109 81,837 731,051 13.1% 84,215 Water Purchases 9,800,000 1,903,539 - 7,896,461 19.4% 2,050,915 Debt Service 9,188,111 2,023,098 - 7,165,013 22.0% 1,983,899 Capital Outlay Transfers 15,706,950 3,926,738 - 11,780,213 25.0% 3,520,046 Equipment 315,888 38,778 35,433 241,677 23.5% 1,875
Capitalized Fixed Assets 411,883 64,396 50,291 297,196 27.8% 11,991 Other 33,800 708 5,000 28,092 16.9% 708
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 77,359,032 14,983,434 8,781,714 53,593,884 30.7% 13,758,305 Revenue Less Expense (2,646,186) 3,406,170 (8,781,714) 2,729,358 4,733,351

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

WATER OPERATING FUND

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

REVENUES
Service Charges 28,099,437 6,920,654 - 21,178,783 24.6% 6,563,385 Fees 613,443 120,328 - 493,115 19.6% 140,741
Investment Income 364,500 123,101 - 241,399 33.8% 61,440 Rents & Concessions 61,072 12,856 - 48,216 21.1% 12,251 Grants - (15,212) - 15,212 0.0% -
Miscellaneous 5,000 - - 5,000 0.0% 3,179
TOTAL REVENUES 29,143,452 7,161,728 - 21,981,724 24.6% 6,780,995

EXPENSES
Salaries & Benefits 9,225,935 2,034,642 - 7,191,293 22.1% 1,862,660 Materials, Supplies & Services 11,911,193 2,104,138 2,594,231 7,212,824 39.4% 1,811,822 Special Projects 1,338,161 9,015 711,229 617,917 53.8% 11,617 Debt Service 3,552,087 341,981 - 3,210,106 9.6% 341,981 Capital Outlay Transfers 4,056,315 1,014,079 - 3,042,236 25.0% 1,185,764 Equipment 161,175 26,397 11,633 123,145 23.6% 3,012
Capitalized Fixed Assets 145,381 14,983 94,290 36,108 75.2% - Other 4,100 1,513 6,500 (3,913) 195.4% 1,513
TOTAL EXPENSES 30,394,347 5,546,748 3,417,883 21,429,716 29.5% 5,218,368 Revenue Less Expense (1,250,895) 1,614,980 (3,417,883) 552,009 1,562,627 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

WASTEWATER OPERATING FUND

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

REVENUES
Improvement Tax 1,000,000 162,181 - 837,819 16.2% 263,563 Parking Fees 9,023,365 2,016,091 - 7,007,275 22.3% 1,869,909 Other Fees & Charges 15,606 - - 15,606 0.0% 3,939
Investment Income 77,000 29,718 - 47,282 38.6% 11,909
Rents & Concessions 374,590 126,628 - 247,962 33.8% 40,940 Miscellaneous 170,183 54,082 - 116,101 31.8% 39,570
Operating Transfers-In 702,899 175,725 - 527,174 25.0% 178,436 TOTAL REVENUES 11,363,643 2,564,425 - 8,799,218 22.6% 2,408,266

EXPENSES
Salaries & Benefits 5,769,667 1,255,910 - 4,513,757 21.8% 1,101,348 Materials, Supplies & Services 4,716,200 1,115,809 1,231,388 2,369,003 49.8% 862,973 Special Projects 575,730 8,125 484,900 82,705 85.6% 39,455 Transfer-Out 4,600 - - 4,600 0.0% -
Capital Outlay Transfers 905,000 226,250 - 678,750 25.0% 180,272 Equipment 30,008 3,748 - 26,260 12.5% 2,142
Appropriated Reserve 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 12,011,205 2,609,843 1,716,288 7,685,075 36.0% 2,186,189 Revenue Less Expense (647,562) (45,417) (1,716,288) 1,114,143 222,076 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

DOWNTOWN PARKING FUND

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

REVENUES
Leases-Commercial/Industrial 5,500,077 1,399,052 - 4,101,025 25.4% 1,196,238 Leases-Terminal 10,778,396 2,200,702 - 8,577,694 20.4% 2,246,240 Leases-Non-Commercial Aviation 4,689,174 1,207,444 - 3,481,730 25.7% 1,247,915 Leases-Commercial Aviation 6,914,542 1,333,611 - 5,580,931 19.3% 1,555,046 Investment Income 467,500 145,420 - 322,080 31.1% 81,943 Grants 437,036 - - 437,036 0.0% -
Service Charges 1,669 - - 1,669 0.0% 412
Miscellaneous 155,682 39,624 - 116,058 25.5% 4,978
Operating Transfers-In 1,000,000 30,300 - 969,700 3.0% - TOTAL REVENUES 29,944,075 6,356,152 - 23,587,923 21.2% 6,332,773

EXPENSES
Salaries & Benefits 11,411,379 2,404,777 - 9,006,601 21.1% 2,194,377 Materials, Supplies & Services 13,657,540 2,762,267 2,767,942 8,127,331 40.5% 2,394,793 Special Projects 1,847,707 141,132 833,777 872,798 52.8% 161,758 Transfer-Out 628,167 98,287 - 529,880 15.6% 62,500
Debt Service 1,559,205 389,801 - 1,169,404 25.0% 387,938 Capital Outlay Transfers 1,676,136 419,034 - 1,257,102 25.0% 338,138 Equipment 258,353 495 1,232 256,625 0.7% 15,942
Capitalized Fixed Assets 53,000 - - 53,000 0.0% -
Other - - 5,000 (5,000) 0.0% -
Appropriated Reserve 131,556 - - 131,556 0.0% -
TOTAL EXPENSES 31,223,042 6,215,794 3,607,951 21,399,297 31.5% 5,555,445 Revenue Less Expense (1,278,967) 140,358 (3,607,951) 2,188,626 777,329 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

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

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Revised YTD Encum- Remaining Percent of Previous
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REVENUES
Fees & Card Sales 3,918,765 1,276,032 - 2,642,733 32.6% 1,175,608 Investment Income 57,000 21,661 - 35,339 38.0% 9,447
Rents & Concessions 231,000 71,761 - 159,239 31.1% 63,230 Miscellaneous - 814 - (814) 0.0% (311)
TOTAL REVENUES 4,206,765 1,370,268 - 2,836,497 32.6% 1,247,974

EXPENSES
Salaries & Benefits 110,567 21,977 - 88,590 19.9% 19,244 Materials, Supplies & Services 3,376,451 618,942 2,578,320 179,189 94.7% 621,500 Capital Outlay Transfers 301,978 75,000 - 226,978 24.8% 57,000 TOTAL EXPENSES 3,788,996 715,919 2,578,320 494,757 86.9% 697,744 Revenue Less Expense 417,769 654,350 (2,578,320) 2,341,740 550,230 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

GOLF COURSE FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 3,645,995 877,839 - 2,768,156 24.1% 838,972 Work Orders - Bldg Maint. 3,644,723 837,449 - 2,807,274 23.0% 865,004 Miscellaneous 5,500 - - 5,500 0.0% -
TOTAL REVENUES 7,296,218 1,715,288 - 5,580,930 23.5% 1,703,976

EXPENSES
Salaries & Benefits 5,150,098 962,128 - 4,187,970 18.7% 989,049 Materials, Supplies & Services 2,129,675 572,019 343,844 1,213,811 43.0% 404,013 Special Projects 299,172 77,712 177,195 44,265 85.2% 83,879 Capital Outlay Transfers 3,598 899 - 2,699 25.0% 48,399 Equipment 10,000 1,804 - 8,196 18.0% 2,183
TOTAL EXPENSES 7,592,543 1,614,563 521,040 5,456,940 28.1% 1,527,523 Revenue Less Expense (296,325) 100,725 (521,040) 123,990 176,454

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

FACILITIES MANAGEMENT FUND

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REVENUES
Vehicle Rental Charges 4,963,096 1,281,592 - 3,681,503 25.8% 742,403 Investment Income 351,897 119,582 - 232,315 34.0% 53,968 Rents & Concessions 4,380 25,793 - (21,413) 588.9% 25,793 Miscellaneous 68,000 26,474 - 41,526 38.9% 14,500
Operating Transfers-In - - - - 0.0% 198,778
TOTAL REVENUES 5,387,373 1,453,442 - 3,933,931 27.0% 1,035,442

EXPENSES
Salaries & Benefits 207,091 39,315 - 167,776 19.0% 41,759 Materials, Supplies & Services 25,316 10,105 - 15,211 39.9% 970 Debt Service 606,372 - - 606,372 0.0% -
Capitalized Fixed Assets 6,998,962 49,632 1,919,196 5,030,135 28.1% 35,626 TOTAL EXPENSES 7,837,741 99,051 1,919,196 5,819,494 25.8% 78,355 Revenue Less Expense (2,450,368) 1,354,391 (1,919,196) (1,885,563) 957,087

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

FLEET REPLACEMENT FUND

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REVENUES
Vehicle Maintenance Charges 3,162,732 771,525 - 2,391,207 24.4% 789,535 Reimbursements 5,000 2,500 - 2,500 50.0% 1,250
Miscellaneous 114,602 29,908 - 84,694 26.1% 40,531
TOTAL REVENUES 3,282,335 803,933 - 2,478,401 24.5% 831,317

EXPENSES
Salaries & Benefits 1,675,980 363,488 - 1,312,492 21.7% 351,456 Materials, Supplies & Services 1,757,837 442,242 347,953 967,642 45.0% 346,460 Special Projects 71,367 21,744 26,699 22,923 67.9% 10,679 Capital Outlay Transfers 1,467 367 - 1,100 25.0% 367
Equipment 7,884 - - 7,884 0.0% 494
Capitalized Fixed Assets 30,275 - 30,275 - 100.0% -
Appropriated Reserve 15,000 - - 15,000 0.0% -
TOTAL EXPENSES 3,559,810 827,842 404,927 2,327,041 34.6% 709,455 Revenue Less Expense (277,475) (23,908) (404,927) 151,360 121,862

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

FLEET MAINTENANCE FUND

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REVENUES
Insurance Premiums 11,001,421 2,752,124 - 8,249,297 25.0% 1,914,650 Workers' Compensation Premiums 5,724,102 1,492,639 - 4,231,463 26.1% 1,142,315 OSH Charges 301,269 78,560 - 222,709 26.1% 73,244
Unemployment Insurance Premium 200,000 47,978 - 152,022 24.0% 102,566 Investment Income 27,500 14,700 - 12,800 53.5% 3,782
Operating Transfers-In 75,825 18,956 - 56,869 25.0% 18,956 TOTAL REVENUES 17,330,117 4,404,957 - 12,925,160 25.4% 3,255,512

EXPENSES
Salaries & Benefits 838,683 199,005 - 639,678 23.7% 188,379 Materials, Supplies & Services 19,264,578 3,123,934 1,086,240 15,054,404 21.9% 2,465,915 Capital Outlay Transfers 409 102 - 307 25.0% 102
Equipment - 456 - (456) 0% -
TOTAL EXPENSES 20,103,670 3,323,497 1,086,240 15,693,934 21.9% 2,654,396 Revenue Less Expense (2,773,553) 1,081,460 (1,086,240) (2,768,774) 601,116 The Self Insurance Trust Fund is an internal service fund of the City, which accounts for the cost of providing workers' compensation, property and liability insurance as well as unemployment insurance and certain self-insured employee benefits on a city-wide basis. Internal Service Funds charge other funds for the cost of providing their specific services.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

SELF INSURANCE TRUST FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Service charges 6,208,379 1,548,351 - 4,660,028 24.9% 1,259,501 Operating Transfers-In 329,169 35,787 - 293,382 10.9% - TOTAL REVENUES 6,537,548 1,584,138 - 4,953,410 24.2% 1,259,501

EXPENSES
Salaries & Benefits 3,901,398 846,413 - 3,054,985 21.7% 625,552 Materials, Supplies & Services 2,559,813 983,480 146,590 1,429,744 44.1% 776,578 Special Projects 200 150 - 50 75.0% -
Capital Outlay Transfers 240,830 60,208 - 180,622 25.0% 27,919 Equipment 13,000 (382) - 13,382 -2.9% 660
Appropriated Reserve 3,179 - - 3,179 0.0% -
TOTAL EXPENSES 6,718,420 1,889,869 146,590 4,681,961 30.3% 1,430,710 Revenue Less Expense (180,872) (305,731) (146,590) 271,449 (171,209) from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

INFORMATION TECHNOLOGY FUND
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

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Budget Actual brances Balance Budget YTD

REVENUES
Leases - Commercial 2,350,000 746,476 - 1,603,524 31.8% 745,097 Leases - Food Service 3,575,000 1,132,118 - 2,442,882 31.7% 1,133,878 Slip Rental Fees 5,578,030 1,419,618 - 4,158,412 25.5% 1,293,147 Visitors Fees 765,000 221,960 - 543,040 29.0% 182,828
Slip Transfer Fees 1,100,000 411,275 - 688,725 37.4% 341,725 Parking Revenue 3,596,500 1,362,288 - 2,234,212 37.9% 1,223,457 Wharf Parking 325,000 101,638 - 223,362 31.3% 99,381
Other Fees & Charges 272,740 64,140 - 208,600 23.5% 63,747 Investment Income 243,200 87,679 - 155,521 36.1% 45,303 Rents & Concessions 435,000 116,621 - 318,379 26.8% 119,135 Miscellaneous 787,000 67,604 - 719,396 8.6% 92,515
TOTAL REVENUES 19,027,470 5,731,416 - 13,296,054 30.1% 5,340,214

EXPENSES
Salaries & Benefits 8,342,167 1,866,034 - 6,476,133 22.4% 1,766,088 Materials, Supplies & Services 6,787,027 1,451,040 1,309,282 4,026,705 40.7% 1,257,866 Special Projects 225,565 60,848 0 164,718 27.0% 70,380
Debt Service 2,035,239 889,263 - 1,145,976 43.7% 889,263 Capital Outlay Transfers 1,650,000 412,500 - 1,237,500 25.0% 500,000 Equipment 174,040 22,443 525 151,072 13.2% 7,346
Capitalized Fixed Assets 21,347 - 13,847 7,500 64.9% -
Other 2,000 - 5,000 (3,000) 250.0% -
Appropriated Reserve 100,000 - - 100,000 0.0% -
TOTAL EXPENSES 19,337,385 4,702,127 1,328,654 13,306,604 31.2% 4,490,943 Revenue Less Expense (309,915) 1,029,289 (1,328,654) (10,551) 849,271 Miscellaneous
NOTE - These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

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

Page 20 ends

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

REVENUES
Service Charges 47,660,583 7,788,829 - 39,871,754 16.3% 5,647,233 Investment Income - 1,587 - (1,587) 0.0% -
Grants - 21,060 - (21,060) 0.0% -
TOTAL REVENUES 47,660,583 7,811,477 - 39,849,106 16.4% 5,647,233

EXPENSES
Salaries & Benefits 527,742 95,982 - 431,760 18.2% 42,761 Materials, Supplies & Services 37,154,402 3,176,474 1,508,669 32,469,258 12.6% 3,322,741 Special Projects 1,387,254 218,644 17,393 1,151,218 17.0% 183,351 Debt Service 34,695 - - 34,695 0.0% -
Other 476,606 - - 476,606 0.0% -
TOTAL EXPENSES 39,580,699 3,491,100 1,526,062 34,563,537 12.7% 3,548,853 Revenue Less Expense 8,079,884 4,320,376 (1,526,062) 5,285,569 2,098,380

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

SANTA BARBARA CLEAN ENERGY FUND

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

REVENUES
Service charges 3,014,426 710,961 - 2,303,465 23.6% 638,142 Grants 1,606 - - 1,606 0.0% -
Miscellaneous 62,000 19,277 - 42,723 31.1% -
TOTAL REVENUES 3,078,032 730,238 - 2,347,794 23.7% 638,142

EXPENSES
Salaries & Benefits 916,003 192,405 - 723,598 21.0% 139,127 Materials, Supplies & Services 2,377,971 390,890 169,243 1,817,838 23.6% 267,511 Special Projects 313,022 1,654 123,322 188,045 39.9% -
Debt Service - - - - 0.0% 6,035
Capital Outlay Transfers - - - - 0.0% 109
Equipment 300 240 - 60 80.0% -
TOTAL EXPENSES 3,607,296 585,189 292,565 2,729,542 24.3% 412,782 Revenue Less Expense (529,264) 145,049 (292,565) (381,748) 225,360 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For One Month Ended September 30, 2023 ( 25% of Fiscal Year)

ENERGY AND CLIMATE MANAGEMENT FUND

Page 22 ends

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 1 General Fund Revenues
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Summary of Revenues, General Fund table below reports preliminary General Fund revenues for the month ending September 30, 2023, in Fiscal Year (FY) 2024. For interim financial statement purposes, revenues are reported on a cash basis (i.e., when funds are received). All revenues below have unique collection cycles, therefore may vary from other revenues and result in fluctuations when comparing historical actuals. This table highlights the annual revised budget and actual collections for general tax revenues, franchise fees, and other fees/charges. The largest general tax revenues are discussed in more detail below.

Revised **Projected Percent Prior Year Change
Budget YTD Actual Variance Full-Year Rec'd YTD Actual From FY23 Property Tax 46,371,460 - ($46,371,460) 46,371,460 0% - #DIV/0! Sales & Use Tax 30,650,000 7,646,268 (23,003,732) 30,650,000 25% 7,408,720 3% Measure C Sales Tax 31,900,000 7,887,470 (24,012,530) 31,900,000 25% 8,104,704 (3%) Transient Occupancy Tax 27,414,000 8,485,664 (18,928,336) 27,414,000 31% 9,047,587 (6%) Utility Users Tax 7,375,415 1,853,273 (5,522,142) 7,375,415 25% 2,138,098 (13%) Business License 2,850,000 174,517 (2,675,483) 2,850,000 6% 506,812 (66%) Cannabis Excise Tax 1,518,910 261,188 (1,257,722) 1,518,910 17% 368,558 (29%) Property Transfer tax 1,200,000 224,250 (975,750) 1,200,000 19% 294,470 (24%) Total Taxes 149,279,785 $26,532,627 ($122,747,157) $149,279,785 18% $27,868,950 (5%) License & Permits 233,310 44,753 (188,557) 233,310 19% 39,539 13% Fines & Forfeitures 3,010,801 440,042 (2,570,759) 3,010,801 15% 573,699 (23%) Franchise Fee 6,457,869 1,021,168 (5,436,701) 6,457,869 16% 947,256 8% Use of Money & Property 3,040,773 822,601 (2,218,172) 3,040,773 27% 622,700 32% Intergovernmental 3,009,213 177,624 (2,831,588) 3,009,213 6% 86,267 106% Fee & Charges 14,251,209 4,318,714 (9,932,495) 14,251,209 30% 4,590,277 (6%) Miscellaneous 24,450,272 5,921,334 (18,528,938) 24,450,272 24% 5,149,843 15% Total Other $54,453,448 $12,746,237 ($41,707,210) $54,453,448 23% $12,009,581 6% Total Revenues $203,733,233 $39,278,865 ($164,454,367) $203,733,233 19% $39,878,531 (2%) **Projected Full-Year column projects only the general non-departmental revenues and Franchise Fees. All other revenues assume same as budget for this table. Departments will be presenting more detailed projections during the Budget presentations in the upcoming months, and staff will provide more complete projections of all General Fund Revenues, as well.

SUMMARY OF REVENUES
For the Three Months Ended September 30, 2023 Fiscal Year 2024

GENERAL FUND
Current Year Analysis FY2024 Prior Year Analysis FY2023 Summary of Revenues, General Fund
Property Tax
In 1978, a State constitutional amendment (Article XIIIA) provided that the ad valorem real property tax rate be limited to 1.0% of market value and be levied only by the county and shared with all other jurisdictions. The County of Santa Barbara collects the property taxes and distributes them to taxing jurisdictions because of the taxing jurisdictions’ assessed valuations, subject to ATTACHMENT 2
Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 2 adjustments for voter approved debt. Property taxes are formally due on November 1 and February 1 and become delinquent as of December 10 and April 10, respectively. Taxes become a lien on a property effective March 1 of the preceding year.

As of September 30, 2023, no property tax revenues had been received to date. Typically, the County does not start issuing property tax payments to the City until November or December each year. During the budget process, it was expected the City would see growth of approximately

4.3% from the prior year’s projected revenue of $44.0 Million; however, the prior year’s actual revenue came in higher, at $46.0 Million. Based on the latest estimates provided by the County, the projected revenues at year end are approximately $48.0 Million, or $1.7 Million above budget (+3.6%).

Sales Taxes
Based on the two months of actual collections available for the First Quarter (Q1) and on the City’s sales tax consultant projections, quarterly sales tax revenues are estimated at $7.5 Million, or around $580,000 below budget (-7.0%), at the end of Q1. After the prior year’s strong growth due to increased consumer spending (particularly in online sales and auto sales) and higher-thanexpected inflation, sales taxes are showing signs of flattening. It is likely that actual sales tax revenues will be at or below budget at year end. Staff continue to monitor this revenue closely and will evaluate a revised projection as additional tax remittances are received in preparation for the Second Quarter (Q2) report.

Measure C Sales Tax
Voters approved a one-cent Measure C sales tax in FY2018, which became effective April 1, 2018. Measure C sales tax revenues are estimated at $7.7 Million, or around $600,000 below budget (-7.0%), at the end of Q1. Similar to sales taxes, it is likely that actual Measure C sales tax revenues will be at or below budget at year end. Staff continue to monitor this revenue closely and will evaluate a revised projection as additional tax remittances are received in preparation for the Q2 report.

Transient Occupancy Tax
Transient occupancy tax (TOT) revenue in the Q1 is $8.8 Million, which includes $380,000 in short term rental (STR) and $87,000 in STR settlement revenue from the recently initiated enforcement program. The local travel industry is seeing a slowdown in demand, compared to the prior year’s strong activity. TOT revenues were $480,000 below budget (-5.0%) at the end of Q1. It is likely that actual TOT revenues will be at or below budget at year end. Staff continue to monitor this revenue closely and will evaluate a revised projection as additional tax remittances are received in preparation for the Q2 report.

Department and Other Revenues
Cannabis tax revenues have seen a decline of (29.0%) with last year. This decrease is primarily attributable to one Cannabis business as well as consolidation of operations and reduced sales in FY2024 compared to FY2023. Business License revenue decreased by 66.0% with Q1 FY2023. The main reason for this change is due to the implementation of a new online business portal that is set up to renew licenses on a calendar year versus a 12-month cycle. Various General Fund departments throughout the City generate revenue. These revenue sources combined generated $8.9 Million for Q1 FY2024. Revenues from departments are comprised of various categories in the Summary of Revenues, General Fund table above, but for transparency purposes these variances are broken out by department in the Summary of Departmental Revenues, General Fund table below.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 3 Revised Projected
Department Budget Full Year
Mayor & Council $105,000 $24,027 23% $105,000
City Attorney $0 $250,000 $250,000
City Administrator $569,494 $46,787 8% $569,494
Human Resources $20,000 $4,122 21% $20,000
Finance $850,631 $112,584 13% $850,631
General Government $1,545,125 $437,520 28% $1,795,125
Police $3,834,554 $676,628 18% $3,834,554
Fire $5,589,969 $996,229 18% $5,589,969
Public Safety $9,424,523 $1,672,856 18% $9,424,523
Parks & Recreation $7,916,178 $2,537,066 32% $7,916,178 Library $1,052,079 $40,223 4% $1,052,079
Community Services $8,968,257 $2,577,289 29% $8,968,257 Public Works $8,896,428 $2,234,283 25% $8,896,428
Sustainability & Resiliency $26,342 $6,586 25% $26,342
Community Development $7,724,967 $2,016,680 26% $7,724,967 Total $36,585,642 $8,945,214 24% $36,835,642
% of Annual Budget 24.5%

SUMMARY OF DEPARTMENTAL REVENUES

GENERAL FUND
For the Three Months Ended September 30, 2023 Fiscal Year 2024 YTD
Actual
Summary of Departmental Revenues, General Fund
General Fund Expenditures
The Summary of Departmental Expenditures, General Fund table below summarizes General Fund expenditures through September 30, 2023, compared to the Revised Budget. The Revised Budget column represents the adopted budget, appropriation carryovers from the prior year, and all supplemental appropriations approved by the City Council in the current year. Encumbrances as of September 30, 2023, are shown separately from expense actuals as the inclusion of encumbrances within actuals can distort trends. The City uses encumbrances to control expenditure commitments for the year and to enhance cash management. Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled (executory contracts and open purchase orders). Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities but, rather, as restricted or committed governmental fund balance.

The FY2024 adopted budget included several targeted reduction plans to assist with lowering City expenditures. A balancing strategy of roughly $2.7 Million is allocated across General Fund departments, including general reductions and salary-saving measures.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 4 YTD Variance Remaining
Revised Projected Without Encum- Budget After
Department Budget Full Year Encumbrance brance Encumbrances Mayor & Council $3,405,788 $621,127 18% $3,405,788 $2,784,661 $839,749 $1,944,912 City Attorney $6,507,784 $1,014,990 16% $6,507,784 5,492,794 $260,953 5,231,841 City Administrator $4,062,306 $812,179 20% $4,062,306 3,250,127 $244,457 3,005,670 Human Resources $2,892,512 $625,085 22% $2,892,512 2,267,426 $375,718 1,891,709 Finance $7,887,271 $1,544,557 20% $7,887,271 6,342,715 $411,725 5,930,990 General Government $24,755,662 $4,617,938 19% $24,755,661 $20,137,723 $2,132,603 $18,005,121 Police $60,367,368 $11,994,432 20% $60,367,368 48,372,936 $1,954,867 46,418,070 Fire $34,634,116 $8,990,859 26% $34,634,116 25,643,257 $107,826 25,535,431 Public Safety $95,001,485 $20,985,292 22% $95,001,485 $74,016,193 $2,062,692 $71,953,500 Parks & Recreation $23,933,387 $5,708,760 24% $23,933,387 18,224,627 $1,298,333 16,926,294 Library $8,117,772 $1,497,786 18% $8,117,772 6,619,986 $95,807 6,524,178 Community Services $32,051,159 $7,206,547 22% $32,051,159 $24,844,613 $1,394,139 $23,450,472 Public Works $13,063,906 $2,623,375 20% $13,063,906 10,440,531 $157,999 10,282,533 Sustainability & Resiliency $627,671 $35,530 6% $627,671 592,141 $47,990 544,151 Community Development $16,538,362 $3,294,413 20% $16,538,362 13,243,949 $1,114,171 12,129,778 Measure C Sales Tax $46,837,855 $11,709,464 25% $46,837,855 35,128,391 $0 35,128,391 Non-Departmental $2,393,142 $1,503,316 63% $2,393,142 889,826 $0 889,826 Total $231,269,242 $51,975,873 22% $231,269,241 $179,293,369 $6,909,594 $172,383,773

22.5% 77.5% 3.0% 74.5%

SUMMARY OF DEPARTMENTAL EXPENDITURES

GENERAL FUND
For the Three Months Ended September 30, 2023 Fiscal Year 2024 YTD
Actual
% of Annual Budget
Summary of Departmental Expenditures, General Fund
Expenditure Analysis by General Fund
The General Fund revised budget of $231.3 Million, which includes $6.9 Million in carried forward encumbrances is 22.6% exhausted ($51.9 Million) as of September 30, 2023. The Summary of Departmental Expenditures, General Fund table below shows performance at department level.

41.1% of the total budget, including Non-Departmental Expenditures, is appropriated to provide public safety services through the Police and Fire Departments. Community Services comprises

13.5% of the total budget, which includes the City’s Parks and Recreation and Library Departments. General Government makes up 10.7% of appropriations which includes Finance, City Administration, Mayor and City Council, City Attorney, Human Resources, and City Clerk Departments.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 5 Revised Projected
Character Type Budget Full Year
Salaries $85,369,826 $ 19,132,905 22% $ 85,369,826
Benefits $53,989,084 $ 11,890,078 22% $ 53,989,084
Attrition Savings ($6,000,000) $0 0% $ (6,000,000)
Salaries & Benefits $133,358,909 $31,022,983 23% $133,358,909 Supplies & Services $16,405,284 $ 2,510,145 15% $ 16,405,284 Allocated Costs $17,788,203 $ 4,350,325 24% $ 17,788,203 Special Projects $5,797,541 $ 690,526 12% $ 5,797,541
Other $0 $0 #DIV/0! $ -
Supplies & Other $39,991,028 $7,550,996 19% $39,991,028 Equipment $2,265,396 $ 160,026 7% $ 2,265,396
Measure C Sales Tax $46,837,855 $ 11,709,464 25% $ 46,837,855 Transfers $8,578,122 $ 1,532,403 18% $ 8,578,122
Debt Service $237,931 $0 0% $ 237,931
Equipment & Capital $57,919,304 $13,401,893 23% $57,919,304 Expenditure Reductions $ - $ - 0% $ -
Total $231,269,241 $51,975,872 22% $231,269,241
% of Annual Budget 22.5%
Actual
YTD

SUMMARY OF EXPENDITURES BY TYPE

GENERAL FUND
For the Three Months Ended September 30, 2023 Fiscal Year 2024 Summary of Departmental Expenditures by Character Code, General Fund General Government actual spending of approximately $4.6 Million represents 19.0% of its associated annual budget. All divisions are below 25.0% of the budget, which indicates a conservative approach to spending.

Public Safety actual spending is approximately $20.9 Million or 22.0% of the associated annual budget. Lower expense trends are mainly related to staffing shortages.

The Police Department (PD) expended $12.0 Million (20.0%) of its budget in Q1, a 10.8% increase for the same period last year. At the end of Q1, salaries were at 18.8% ($4.9 Million) and overtime reached 33.1% ($674k) however, there is a 4.0% reduction compared to the prior year which is attributed to the Department’s new Patrol shift plan and additional staff hires. As part of the FY2024 Budget Reductions, the Department has removed the Range Master position and has held (1) Specialty Sergeant, and (2) Specialty Officer positions.

The Fire Department (FD) spent $9.0 Million, using 26.0% of its budget. Salary projections show favorable variances for Prevention and Operations due to vacant positions. However, overtime projections show unfavorable variances for Constant Staffing Overtime, Mutual Aid Overtime, and FLSA Overtime. At Q1, overtime is overspent by 5.0% mainly driven by station coverage for vacation, sick leave, holiday, industrial injuries, and administrative leave. This will be partially offset with mutual aid reimbursements and salary savings generated by vacant positions: One Fire Inspector II and two Firefighters.

Community Services has actual expenditures of $7.2 Million, or 23.0% of associated budget for FY2024. Salaries and benefits – the largest expenditure – is 21.0% of budget for Q1. Ongoing Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 6 vacancies due to staff turnover is the main reason for this lower-than-expected variance. Supplies and services have $430K encumbered. This amount is related mainly to professional service agreements for plan check services, building inspections. As a result, 52.0% of the budget has been used for this line item. An additional $684K is encumbered in Special projects largely made up of Human Services Grant Awards. Including encumbrance, the Special projects category used 72% of its budget in Q1.

Parks and Recreation (P&R) Department is right on target with 24.0% of expenditures against budget or $5.7 Million. There is no significant variance at this point. The department expects to meet its targets for FY2024 unless unprecedent events arise.

The Library Department spent $1.4 Million, or 20.0% of its annual budget. Savings in the General Fund at Q1 is due to unexpected vacancies and grant funding coverage of salaries. The department follows a consistent trend with the prior year except for a slight difference in Adult Education.

The Public Works Department (PWD) had expenditures of $ 2.6 Million, or 21.3% of its annual budget for Q1 FY2024. Overall, actual expenditures follow the same trend as last year, Q1 FY2023.

The Sustainability & Resilience (S&R) Department had expenditures of $35.5K or only 6.0% of its FY2024 budget. It is expected to have expenses starting with Q2 and FY2024 should be fully utilized.

The Community Development Department (CDD) had expenditures of $3.2 Million and encumbrance of $1.1 Million or 26.7% of its annual budget. At Q1 the Community Development General Fund budget is tracking the budget plan very closely. The largest expenditure category of Salaries and Benefits is at 21.0% in the Q1. In comparison to FY2023, no significant variances stand alone at the exception of Human Services which represents 78.4% of its FY2024 budget.

One program for $726K is supported by an annual grant and another for $220K is related to Homelessness and Habitat for Humanity home repair programs.

Non-Departmental expenditure includes transfers from the General Fund to other funds. Most transfers occurring are to the Measure C fund which supports various capital maintenance and improvement projects. Anticipated year-end attrition savings are also recorded here, which helps balance variances achieved. $13.2 Million is currently allocated to this non-departmental section.

It is mainly driven by capital outlay transfers to revenue General Fund Capital Improvement Program (CIP) for $1.3 Million and Measure C – Capital fund for $11.7 Million.

General Fund Reserves Projection
The General Fund, Fund Balance table below summarizes reserve projections for FY2024, compared to actual reserves from prior years. General Fund has two reserve targets, Disaster Reserves and Contingency Reserves.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 7 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY24 v FY23 Actual Actual Actual Actual Actual
Projected at
Q1
Projected Change
in Reserve
Contingency Reserve Target 10% $13,910,966 $13,799,412 $14,255,661 $15,650,447 $16,862,261 $17,892,131 $1,029,870 Disaster Reserve Target 15% 20,866,449 20,699,118 21,383,491 23,475,670 25,293,392 26,838,197 1,544,805 Total Policy Reserve Target $34,777,415 $34,498,530 $35,639,152 $39,126,117 $42,155,653 $44,730,328 $2,574,675 (Below) / Above Policy (1,513,888) (8,526,275) (1,419,589) 464,613 (3,841,688) (19,014,516) (15,172,828) Actual Reserves $33,263,527 $25,972,255 $34,219,563 $39,590,730 $38,313,965 $25,715,812 ($12,598,153) Self-Insurance Fund Under-Reserve* (2,109,073) (4,580,532) (4,758,252) (5,889,878) (7,118,379) ($8,555,105) (1,436,726) Remaining Contingency Reserve $10,288,005 $692,605 $8,077,820 $10,225,182 $5,902,194 ($9,677,490) ($15,579,684) *SIF Note: The SIF under-reserve assumes that 46% of the lower reserve position compared to the actuarial recommended level is the responsibility of the General Fund.

Actual reserves account for encumbrances and discretional appropriation carryforwards that are non-spendable commitments on the ACFR General Fund, Fund Balance
General Fund Reserves, Balance Summary
The Disaster Reserve is restricted to use in addressing the financial impacts of natural disasters, such as storms, floods, wildfires, droughts, tsunamis, earthquakes, and any other event that results in significant damage to City facilities and infrastructure, or a significant reduction of normal operating revenues. The amount of the required Disaster Reserve is calculated based on 15.0% of the most recently adopted fiscal year operating expenditure budget.

The purpose of the Contingency Reserve is to allow for the orderly implementation of a balancing strategy to address the fiscal impacts of unexpected events to minimize the impacts to the organization and community. The most common of these events would be an economic recession that results in a significant impact on key revenues such as sales, transient occupancy, or property taxes. The Contingency Reserve is calculated based on 10.0% of the most recently adopted fiscal year operating expenditure budget. This table summarizes General Fund reserve targets of 15.0% Disaster and 10.0% Contingency as required by City Council Resolution No. 23-124. Any use of the Disaster or Contingency reserves requires a majority vote of approval by the City Council.

Staff will continue to address anticipated changes to reserves based on projections in future quarterly reports to the City Council.

The FY2024 adopted budget required a strategic use of a small number of reserves to balance the budget. Reserves were largely replenished in FY2022; however, they are projected to decline slightly in FY2024. The Self-Insurance Fund (SIF) is still underfunded based on the actuarial recommended level, which continues to present a burden on the General Fund.

The graph below summarizes the General Fund Reserves since FY2005, including a projection of ending reserves at the end of FY2024. The FY2024 adopted budget appropriated use of $1.5 Million of reserves to balance the budget. FY2024 also includes the use of carryforward appropriation from FY2023, which is included in the revised budget.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 8 $0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Actual Disaster Reserves Actual Contingency Reserves Actual Additional Reserves Policy Reserves General Fund Reserves, Summary
(FY2024 are projections, whereas other years are actuals) Enterprise Operating Fund Revenues and Expenses
Unlike the General Fund, that relies primarily on taxes to fund programs and services, Enterprise Funds, also known as Proprietary Funds, are financed primarily from user fees and other non-tax revenues. The Summary of Revenues & Expenses, Enterprise Funds table below reports Enterprise Fund revenues and expenses through September 30, 2023, associated Annual Budget, projected end-of-year actuals and prior year actuals for this same twelve-month period.

Encumbrances as of September 30, 2023, are shown separately from expense actuals as the inclusion of encumbrances within actuals can distort trends. Proprietary funds of the City include the Water Fund, Wastewater Fund, Airport Fund, Waterfront Fund, Solid Waste Fund, Downtown Parking Fund, Clean Energy Fund, and Golf Fund.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 9 Revised YTD Projected YTD Encumbered YTD %
Budget Actual Year End Percent Actual Variance
Solid Waste Fund
Revenues 38,291,420 9,558,367 38,291,420 25.0% - 8,431,160 13.4% Expenses 38,621,250 7,466,978 38,621,250 19.3% 16,418,711 6,219,736 20.1% Add / (Use) Reserves ($329,830) $2,091,388 ($329,830) ($16,418,712) $2,211,423 Water Fund
Revenues 74,712,846 18,389,604 74,712,846 24.6% 0 18,491,656 -0.6% Expenses 77,359,032 14,983,434 77,359,032 19.4% 8,781,714 13,758,305 8.9% Add / (Use) Reserves ($2,646,186) $3,406,170 ($2,646,186) ($8,781,714) $4,733,351 Wastewater Fund
Revenues 29,143,452 7,161,728 29,143,452 24.6% 0 6,780,995 5.6% Expenses 30,394,347 5,546,748 30,394,347 18.2% 3,417,883 5,218,368 6.3% Add / (Use) Reserves ($1,250,895) $1,614,979 ($1,250,895) ($3,417,884) $1,562,626 Downtown Parking Fund
Revenues 11,363,643 2,564,425 11,363,643 22.6% 0 2,408,266 6.5% Expenses 12,011,205 2,609,843 12,011,205 21.7% 1,716,288 2,186,189 19.4% Add / (Use) Reserves ($647,562) ($45,417) ($647,562) ($1,716,288) $222,076 Clean Energy Fund
Revenues 47,660,583 7,811,477 47,660,583 16.4% 0 5,647,233 100.0% Expenses 39,580,699 3,491,100 39,580,699 8.8% 1,526,062 3,548,853 -1.6% Add / (Use) Reserves $8,079,884 $4,320,376 $8,079,884 ($1,526,062) $2,098,380 Airport Fund
Revenues 29,944,075 6,356,152 29,944,075 21.2% 0 6,332,773 0.4% Expenses 31,223,042 6,215,794 31,223,042 19.9% 3,607,951 5,555,445 11.9% Add / (Use) Reserves ($1,278,967) $140,358 ($1,278,967) ($3,607,951) $777,329 Golf Fund
Revenues 4,206,765 1,370,268 4,206,765 32.6% 0 1,247,974 9.8% Expenses 3,788,996 715,919 3,788,996 18.9% 2,578,320 697,744 2.6% Add / (Use) Reserves $417,769 $654,350 $417,769 ($2,578,320) $550,230 Waterfront Fund
Revenues 19,027,470 5,731,416 19,027,470 30.1% 0 5,340,214 7.3% Expenses 19,337,385 4,702,127 19,337,385 24.3% 1,328,654 4,490,943 4.7% Add / (Use) Reserves ($309,914) $1,029,289 ($309,915) ($1,328,654) $849,271

SUMMARY OF REVENUES & EXPENSES
For the Three Months Ended September 30, 2023 Fiscal Year 2024

ENTERPRISE FUNDS
Current Year Analysis FY2024 Prior Year FY2023
Summary of Revenues & Expenses, Enterprise Funds
Solid Waste Fund
The Solid Waste Fund accounts for trash and recycling services and related programs. Solid Waste Revenues are $9.6 Million for Q1, which aligns with the budget (25.0%). A large majority of this revenue comprises of trash and recycling service charged to customers. The main costs are for hauling service (provided by the City’s franchise hauler MarBorg Industries), for processing and disposal services through the Resource Center at the Tajiguas Landfill (administered by the County of Santa Barbara). The City and MarBorg entered into a new franchise agreement in June 2023. During the final reconciliation, additional compensation related to the prior agreement was identified. Staff are still finalizing and confirming with MarBorg the final compensation amount, but staff expect it to be about $1.7 Million. Furthermore, as part of the old franchise agreement, MarBorg paid the County for trash disposal fees of both regular trash, recycling, and green waste.

Under the new agreement the City directly pays the County for trash and recycling tipping fees as well as green waste fees. These last ones were not considered in the FY2024 adopted budget, and staff expect the cost to be about $250,000 above budget. Staff are requesting a budget amendment at Q1 to cover these additional costs, to be funded from reserves.

Water Fund
The Water Fund accounts for the provision of water services to the residents of the City and some residents of the County. For Q1 FY2024, Water Fund revenues have totaled $18.3 Million, or Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 10 24.6% of its adopted budget. Actual is currently in line with projection. Expenditures ended Q1 at $14.9 Million or 19.4% of the budget. The slight peak in comparison to FY2023 is related to capital outlay with equipment, hardware, and software purchased for ongoing operations.

Wastewater Fund
The Wastewater Fund accounts for the provision of sewer services to the residents of the City and some residents of the County. FY2024 revenues are on target at $7.1 Million (25.0% of its annual budget). Only a portion of Wastewater rates depend on water usage, which explains why there is less variability in Wastewater rate revenue when compared to Water rate revenue.

Various other revenue sources such as interest income, sewer tap fees, pre-treatment analysis, and Fats-Oils-Grease (FOG) disposal fees experienced small variances that contributed to the overall balance of revenues. For Q1, interest income exceeded its normal trend by 8.8% or 33.8% due to favorable market.

Expenditures (including encumbrances) are at $9.0 Million (30.0% of budget). The main drivers for this increase are encumbrances for supplies, services, equipment, and capitalized fixed assets. Under special project, the Ocean outfall monitoring and root control are in full mode and should be completed in Q2.

Downtown Parking Fund
Downtown Parking Fund accounts for the provision of parking services in the downtown area of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, billing and collection of fees, capital acquisition, construction, and financing and related debt service. At Q1, actual revenues for Downtown Parking are approximately $2.6 Million or 22.6% of its annual budget. Revenue shortfalls can be attributed to changes in parking behavior due to the FY2024 hourly parking fee increase and reduced enforcement of on-street parking restrictions. Rents and concessions revenue for $127K was 33.8% of budget. Due to a favorable market, investment income reached $29.7K or 38.6% of its budget. Overall expenditure for Q1 is $2.6 Million. With encumbrances of $1.7 Million, expenses are at 36.0% of budget. The main bulk of the encumbrance is with Facilities maintenance which includes janitorial contracts, landscape maintenance, street sweeping, and other miscellaneous items ($912K).

Clean Energy Fund
The Clean Energy Fund accounts for the cost to procure clean and renewable electric energy on behalf of the Santa Barbara Community. The Santa Barbara Clean Energy Fund began operation in October 2021 and started receiving revenue in Q2 FY2022. Q1 Revenues are $7.8 Million or

16.0% of budget. Revenues are expected to exceed the budget by $1.5 Million. Expenditures for the SBCE Fund through Q1 is approximately $3.5 Million or 13.0% of the budget. There is expected to be a $1.7 Million favorable variance to the budget at yearend.

Airport Fund
The Airport Fund accounts for the operation of the municipal airport and the administration of leases of airport property. The Airport Department sustained a robust level of commercial airline passenger activity for Q1. However, it is important to acknowledge that certain external factors have had a moderating influence on passenger counts. Unfavorable weather conditions, coupled with nationwide airline staffing shortages and technical challenges, contributed to a marginal monthly decline in passenger counts observed in both April and June. Despite these challenges, it is evident that the Airport Department's performance remains on an upward trajectory. Indeed, without these transient setbacks, the potential for even more pronounced growth in passenger Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 11 activity would have been realized. This resilience and dedication to excellence position the Airport Department for continued success in the dynamic aviation landscape. Total revenues of $6.4 Million are slightly lower, reaching 21.0% of the annual budget. Commercial/industrial leases cover predominantly the source of revenues (43.0%), when non-commercial aviation reflects

19.0% and Terminal leases, 38.0%.

Total Airport expenses for Q1 are $6.3 Million and $3.6 Million in encumbrances. Its level of expenditure is 32.0% of the FY2024 budget. Salaries and benefits are projected to end the fiscal year as budgeted. All vacancies are projected to be filled with savings offset by over-hired positions and overtime exceeding budget.

Golf Fund
The Golf Course Fund accounts for the operation of the municipal golf course. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, capital acquisition and construction, financing and related debt service, and billing and collection of fees. At Q1, actual golf revenues are $1.4 Million or 32.6% of budget. Paid rounds remain strong with 32.0% of the budget achieved by the end of Q1. Expenditure in Q1 ended at $715K with a further $2.5 Million encumbered. Actual expenditure is 19.0% of the budget. $1.2 Million was encumbered under Golf course maintenance for management fees, operations, maintenance, lessons, and incentive. There are no other major variances.

Waterfront Fund
The Waterfront Fund accounts for the operation of the City managed waterfront that includes a public wharf, a small craft harbor, and parking facilities. Actual revenues for Q1 are $5.7 Million or 30.0% of its annual budget. Parking and Marina Management is tracking favorable due to increased fees.

Actual expenditure for Q1 is $4.7 Million (31.0% of annual budget) and encumbrances are $1.3 Million. Salaries and benefits are expected to end the year under budget due to leaving some positions vacant.

Enterprise Operating Funds: Projected Reserves
The Enterprise Operating Funds, Reserves table below summarizes the anticipated impact on reserves in each major enterprise fund at the end of FY2023 compared to policy reserve targets.

Enterprise
Operating Funds
FY2022
Policy Reserves
FY2022
Available
Reserves*
FY2024 Projected
Add (Use) of
Reserves
FY2024 Projected
Available Reserves
Solid Waste 5,174,504 2,441,640 (329,830) 2,111,810
Water 32,648,426 15,106,164 (2,646,186) 12,459,978
Wastewater 11,112,046 658,121 (1,250,895) (592,774)
Downtown Parking 2,784,756 58,443 (647,562) (589,119)
Clean Energy 8,306,226 (9,694,992) 8,079,884 (1,615,108) Airport 7,632,879 5,403,913 (1,278,967) 4,124,946
Golf 969,828 1,546,063 417,769 1,963,832
Waterfront 3,932,918 4,207,206 (309,915) 3,897,291
* Year end entries may affect results
Enterprise Operating Funds, Reserves
Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 12 For FY2024, all enterprises aside from Clean Energy, Downtown Parking, and Wastewater are anticipated to have a funded position.

Interdepartmental Services Operating Fund Revenues and Expenses The City has established internal service funds for centralized services that provide support across most or all funds and departments. These functions primarily include Fleet, Facilities, Risk Management, Creeks, and Information Technology. The interim quarterly reports would typically not discuss in detail major changes in the City’s internal services departments and funds, as major changes typically do not occur during the year. For additional information, please see Attachment 1, Interim Statement of Revenues and Expenditures for additional details.

Self-Insurance Fund (SIF)
The City purchases insurance policies to cap its exposure to loss for specific hazards. The SIF accumulates revenues through an annual allocation from departments as an expenditure to each department. The SIF then funds the program’s annual renewals for insurance coverage for claims that may arise and to cover salaries/benefits of staff administering the program.

The SIF continues to experience challenges in receiving adequate annual allocations to the fund from operating departments and not having adequate reserves in the fund to pay future claims.

The cost to the City to retain existing property, excess general liability, and other insurance programs has increased substantially over the years. Liability coverage has become more expensive across the nation due to various substantial claims; notable claims related to law enforcement and droughts and wildfires in the Western United States and California included.

The adopted budget included additional allocations into the SIF to begin to increase reserves to achieve the actuarial recommended level over the next eight years. Expenditures of $3.3 Million represent 21.9% of total budgeted expenditures. The most current actuarial report recommended the SIF maintain a reserve balance of $24.1 Million by the end of FY2023, a $5.9 Million increase from the prior fiscal year.

Staff presented an overview to the Finance Committee of major changes anticipated in the insurance industry, budget considerations for FY2023 and FY2024. The presentation recommended substantial increases to allocations into the SIF from the operating departments to ensure the SIF can meet the ongoing premium and claim payments costs can be met, and adequate reserves are achieved. The Finance Committee unanimously supported implementing a plan to gradually increase allocations into the SIF over the next eight fiscal years to achieve target reserves at or near the actuarial recommended level. Staff built these allocation increases into the FY2024 budget.

Staff proposed a $4.0 Million transfer from the General Fund into the SIF by the end of FY2024.

This action will help stabilize the SIF reserves further to fund the City’s insurance programs and reduce future funding challenges.

The graph below, Self-Insurance Fund, Actuarial Recommendation, shows the actuarial recommended reserve, the actual/projected cash in the SIF over the past 12 years, and the gradual/substantial reduced reserve levels in recent years.

Fiscal Year 2024 Interim Financial Statements
for the Three Months Ended September 30, 2023 (25.0% of Year Elapsed) 13 $0
$5
$10
$15
$20
$25
$30
$35
$40
Self-Insurance Fund
Actuarial Recommended Reserve vs. Actual/Projected Cash Total Actuarial Recommended Reserve Cash Held in SIF
ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
GENERAL FUND (Fund 1000)
($30,000) $30,000
$30,000 ($30,000)
Increase appropriation in Finance to transfer out to the Measure C Fund (3010) for excess revenue from FY2023. $2,299,450 ($2,299,450) Reduce Mutual Aid Revenue in Fire Operations to reflect end of wildland season and actual claims submitted for reimbursement ($400,000) ($400,000)
Increase appropriations in Fire Prevention's overtime to reflect actual deployment costs (reimbursed by Mutual Aid) $2,929 ($2,929) Reduce appropriations in Fire Prevention's salaries to reflect Fire Inspector II vacancy for year ($196,000) $196,000 $2,643 ($2,643)
$11,310 ($11,310)
$1,754 ($1,754)
$321 ($321)
$111,165 ($111,165)
$101 ($101)
$11,924 ($11,924)
$2,929 ($2,929)
$586 ($586)
$284,708 ($284,708)
$4,100 ($4,100)
Increase appropriations in overtime budget in Fire - Incidents to reflect required OT to maintain constant staffing $29 ($29) Increase appropriations in overtime budget in Fire ARFF to reflect required OT to maintain constant staffing $57,619 ($57,619) Reduce appropriations in Fire Operation's salaries for known vacancies of 1 FF for 4 quarters and 1 FF for 3 quarters ($306,965) $306,965 Increase appropriations in Fire's Overtime FLSA budget to reflect trend $248,553 ($248,553) ($55,000) $55,000
$55,000 ($55,000)
($9,959) $9,959
($76) $76
($15,514) $15,514
($20) $20
($200,000) $200,000
$200,000 ($200,000)
Decrease appropriations of $156,272 in the Public Works General Fund to reprogram to Solid Waste Fund (5400). As part of the FY24 Budget adoption, the administration of the Environmental Compliance program was moved from Public Works - Facilities, to the Sustanability & Resilience - Environmental Services Division. This request moves existing budget appropriations from the General Fund to the Solid Waste Fund for the one position. ($156,272) $156,272
Increase appropriations by $9,800 for Special Projects in Sustainability and Resilience. As part of the FY24 budget process, a 5% reduction was approved, but a 10% reduction was actually implemented in the course of budget adoption ($9,800 appears to have been reduced twice). Staff is asking to restore $9,800 in additional project funding for underground tank abatement funding.
$9,800 ($9,800)
Increase estimated revenues and appropriations by $28,305 for an executed lease with First Friends by the Sea. CAR approved 7/25/23. $28,305 $28,305 $0
Increase estimated revenues and appropriations by $7,528 for reimbursement Stipend(s) received for Child Care services from SB County of Education Office. $7,528 $7,528 $0
Increase estimated revenues and appropriations by $440 for reimbursement stipends from State of CA/CalWORK for child care services. $440 $440 $0
GENERAL FUND (Continued)
Increase estimated revenues and appropriations for a new camp, "Ice N Paradise". $20,000 $20,000 $0 City of Santa Barbara
Fiscal Year 2024 Financial Statements for the Three Months Ended Sep 30, 2023 Schedule of Proposed First Quarter Budget Adjustments
Increase appropriations to transfer in to City Administrators budget in the General Fund for Economic Development Initiatives from the Community Development Misc Grant Fund (2810)
Decrease and increase appropriations in the Wildfire Mitigation General Fund reserve to transfer out to Measure A Capital Fund (3440) to begin the installation of temporary bike lanes.

Transfer allocated cost budget from General Fund to the Water Operations Fund (5000) in the Water Resources program that was erroneously budgeted in General Fund. Decrease $25,569 in appropriations.

Decrease and increase in appropriations in the General Fund to transfer out Rental Housing Outreach, Professional Services, to the Downtown Parking Fund (5300) for revenue replacement that occurred during the COVID-19 pandemic, from the ARPA funding
Increase appropriations in Fire Department's FLSA Overtime to reflect actual expense plus small reserve for future OT accrued in FY 24
Increase appropriations in overtime budget in Fire Operations to reflect required OT to maintain constant staffing Increase appropriations in Fire Operation's overtime allocation for Mutual Aid overtime based on known time worked

Page 1 of 6 ends

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
($58,914) $58,914
($47,483) $47,483
($49,242) $49,242
($47,515) $47,515
($9,297) $9,297
($9,297) $9,297
Total General Fund (1000) $2,199,641 ($343,727) ($2,543,368)

SPECIAL REVENUE FUNDS
Federal Home Loan Program Fund (2140)
Decrease estimated revenues and appropriations by $13,660 in the HOME Fund. Each year there is a requirement to award the program income received during the prior fiscal year. This adjustment is necessary to reduce appropriations to the correct amount for FY24.
($13,660) ($13,660) $0
Total Federal Home Loan Program Fund (2140) ($13,660) ($13,660) $0 Street Sweeping Fund (2405)
($344,273) $344,273
($51,295) $51,295
Total Street Sweeping Fund (2405) ($395,568) $0 $395,568 Transportation Development Fund (2420)
($1,000) $1,000
$1,000 ($1,000)
SBCAG provided the revised apportionment for the FY24 Local Transporation Fund (LTF) allocation to $103,356, which is higher than the original estimate of $98,892 with a difference of $4,464. $4,464 $4,464 $0 Total Transportation Development Fund (2420) $4,464 $4,464 $0 Increase expenditure appropriations in the San Andres Safe Crossing Project in the Transportaion Development Act Fund for in the amount of $1,000 for the City match funds for the San Andres Safe Crossings Project from the Bicycle Improvement Project.

Decrease appropriations to correct clerical error for over charging Workers Compensation Benefits in four Recreation Programs.

Decrease appropriations in the Street Sweeping Fund to reprogram to Creek Restore/Water Quality Imp Fund (2640). As part of the FY24 Budget adoption, the administration of the residential street sweeping program was moved from Public Works - Streets Division to the Sustainability & Resilience - Creeks Restoration and Water Quality Improvement Division. This request moves existing budget appropriations from the Street Sweeping Fund to the Creeks Fund to complete the administrative change.

Decrease appropriations to correct clerical error generated when hourly medicare object code was deleted.

Page 2 of 6 ends

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
SPECIAL REVENUE FUNDS (Continued)
Creek Restore/Water Quality Imp Fund (2640)
$344,273 ($344,273)
$51,295 ($51,295)
Total Creek Restore/Water Quality Imp Fund (2640) $395,568 $0 ($395,568) FEMA Hazard Mitigation Fund (2710)
$0 $752,003 $752,003
$1,002,671 ($1,002,671)
$250,668 $250,668
Total FEMA Hazard Mitigation Fund (2710) $1,002,671 $1,002,671 $0 Community Development Miscellaneous Grants Fund (2810)
($30,000) ($30,000)
($10,000) $10,000
($20,000) $20,000
Total Community Development Miscellaneous Grants Fund (2810) ($30,000) ($30,000) $0 Police Miscellaneous Grants Fund (2830)
Increase estimated revenues and appropriations of $101,425.48 for Opioid Settlement funds received. $101,425 $101,425 $0 Total Police Miscellaneous Grants Fund (2830) $101,425 $101,425 $0 Library Miscellaneous Grants Fund (2850)
Increase estimated revenues and appropriations by $1,000. The Library was awarded an additional $1,000 to be utilized for Lunch at the Library core supplies and books. $1,000 $1,000 $0 Increase estimated revenue and appropriations to use $12,000 from the Yardi Education Trust and $1,200 from the Wais Trust to fund giveaway books for Banned Books Week. $13,200 $13,200 $0 Increase estimated revenues and appropriations from $250,000 received from Yardi for collections through the Santa Barbara Public Library Foundation. $250,000 $250,000 $0
$5,000 $5,000 $0
$27,000 $27,000
$100,000 $100,000 $0
The Friends of the Central Library fundraises for the Library. This increase in estimated revenue and appropriation lines accounts for an increase in their annual contributions. $5,000 $5,000 $0 $0
Total Library Miscellaneous Grants Fund (2850) $401,200 $401,200 $0 Decrease appropriations from the Community Development Misc Grants Fund to transfer to the City Administrator in the General Fund (1000) for Economic Development Initiatives.

Increase appropriations in the Creek Restore/Water Quality Imp Fund to reprogram from the Street Sweeping Fund (2405). As part of the FY24 Budget adoption, the administration of the residential street sweeping program was moved from Public Works - Streets Division to the Sustainability & Resilience - Creeks Restoration and Water Quality Improvement Division. This request moves existing budget appropriations from the Street Sweeping Fund to the Creeks Fund to complete the administrative change.

Increase revenue and expenditure appropriations in the FEMA Other Projects Fund for Phase II of the Desalination Pump Platform Hardening Project in the amount of $1,002,671, funded by reserves in the Water Operating Fund and anticipated FEMA reimbursement.

The Santa Barbara Public Library Foundation fundraises and campaigns for funds for the Library. This increase in estimated revenue and appropriation lines accounts for a donation for digital literacy, OG Readers/Family Literacy, and SB Reads.

Page 3 of 6 ends

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
SPECIAL REVENUE FUNDS (Continued)
Measure C Capital Fund (3010)
Increase estimated revenues to transfer in from the General Fund (1000) due to excess revenue $2,299,450 $2,299,450 ($155,952) $155,952
$155,952 ($155,952)
Total Measure C Capital Fund (3010) $0 $2,299,450 $2,299,450 Streets Grant Capital Fund (3410)
Increase revenue and expenditure appropriations in the Streets Grant Capital Fund in the amount of $5,000, funded by the Highway Safety Improvement Project grant funds, for the right-of-way phase of the San Andres St. & Sola St. Highway Safety Improvement Project.
$5,000 $5,000 $0
Increase revenue and expenditure appropriations in the Streets Grant Capital Fund in the amount of $35,000, funded by the Highway Safety Improvement Project grant funds, for the right-of-way phase of the Cliff Dr. at Alan Rd. Highway Safety Improvement Project.
$35,000 $35,000 $0
Increase revenue and expenditure appropriations in the Streets Grant Capital Fund in the amount of $5,000, funded by the Highway Safety Improvement Project grant funds, for the right-of-way phase of the De La Vina St. and Los Olivos St. Highway Safety Improvement Project.
$5,000 $5,000 $0
Increase revenue and expenditure appropriations in the Streets Grant Capital Fund in the amount of $37,000, funded by the Active Transportation Program grant funds, for the right-of-way phase and plans, specifications, and estimates phase of the Upper De La Vina Active Transportation Program.
$37,000 $37,000 $0
Correct estimated revenue and expenditure appropriations in the Streets Grant Capital Fund received to reflect $129,048.10 as of Fiscal Year 2024 for federal grant funding for the environmental mitigation & monitoring of the Quinientos Bridge Replacement Project
($257,243) ($257,243)
Total Streets Grant Capital Fund (3410) ($175,243) ($175,243) $0 Measure A Capital Fund (3440)
Increase estimated revenues and appropriations in Measure A Capital Fund to tranfer in from the Wildfire Mitigation General Fund reserve (1000) to begin the installation of temporary bike lanes. $55,000 $55,000 $0 ($20,000) $20,000
$20,000 ($20,000)
Total Measure A Capital Fund (3440) $55,000 $55,000 $0
Appropriate $20,000 from Sidewalk Repairs to Coronel Path Repair Project in the Measure A Capital Fund to the new project.

Move expenditure appropriations in the amount of $155,952 from Measure C Capital - Elevator to Measure C Capital - Plaza because of unforeseen costs in connection with the Library Plaza renovation.

Page 4 of 6 ends

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

ENTERPRISE FUNDS
Water Operating Fund (5000)
Increase appropriations to transfer out the amount of $3,000,000 from Water Operating Fund reserves to the Water Capital Fund (5010), for costs related to emergency repairs due to the winter storm damage, including Gibraltar Reservoir log-boom replacement and golf course reservoir repairs.
$3,000,000 ($3,000,000)
Increase revenue and expenditure appropriations in the FEMA Other Projects Fund for Phase II of the Desalination Pump Platform Hardening Project in the amount of $1,002,671, funded by reserves in the Water Operating Fund and anticipated FEMA reimbursement.
$250,668 ($250,668)
$9,959 ($9,959)
$76 ($76)
$15,514 ($15,514)
$20 ($20)
Total Water Operating Fund (5000) $3,276,237 $0 ($3,276,237) Water Capital Fund (5010)
Increase estimated revenues and appropriations to the Water Capital Fund to transfer in the amount of $3,000,000 from Water Operating Fund reserves (5000) for costs related to emergency repairs due to the winter storm damage, including Gibraltar Reservoir log-boom replacement and golf course reservoir repairs. $3,000,000 $3,000,000 $0
Total Water Capital Fund (5010) $3,000,000 $3,000,000 $0 Downtown Parking Operating Fund (5300)
Increase estimated revenue in the Downtown Parking Fund by transfering in from the General Fund (1000) for revenue replacement that occured during the COVID-19 pandemic, from the ARPA funding received to replenish prior years revenue loss.
$0 $200,000 $200,000
Total Downtown Parking Operating Fund (5300) $0 $200,000 $200,000 Solid Waste Fund (5400)
Increase appropriations of $156,272 for Solid Waste Fund from the Public Works General Fund(1000). As part of the FY24 Budget adoption, the administration of the Environmental Compliance program was moved from Public Works - Facilities, to the Sustanability & Resilience - Environmental Services Division. This request moves existing budget appropriations from the General Fund to the Solid Waste Fund for the one position. $156,272 ($156,272)
Increase appropriation by $1,700,000 for Professional Services. The City and MarBorg entered into a new franchise agreeement in June 2023. As the final reconciliation, additional compensation related to the prior agreement was identified.

Staff is still finalizing and confirming with MarBorg the final compensation amount, but staff expect it to be about $1.7 million or so.
$1,700,000 ($1,700,000)
Increase appropriations by $250,000 for Solid Waste. As part of the old franchise agreement, MarBorg had been paying the County for trash disposal fees of both regular trash, recycling, and greenwaste. As part of the new agreement between the City and the County, the City began paying for trash and recycling tipping fees directly in FY23. Beginning in FY24, the City will also begin to pay greenwaste fees directly. Howerver these greenwaste fees were not originally included in the adopted budget, and staff expect the cost to be about $250,000 above budget. $250,000 ($250,000)
Total Solid Waste Fund (5400) $2,106,272 $0 ($2,106,272) Transfer allocated cost budget from General Fund to the Water Operations Fund in the Water Resources program that was erroneously budgeted in General Fund. Move $25,569 in appropriations.

Page 5 of 6 ends

ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
ENTERPRISE FUNDS (Continued)
Airport Capital Fund (5710)
($300,000) $300,000
$300,000 ($300,000)
$0
($394,433) $394,433
$394,404 ($394,404)
$0
($466,000) $466,000
$466,029 ($466,029)
($252,117) $252,117
$252,117 ($252,117)
$0
Total Airport Capital Fund (5710) $0 $0 $0
Library Gift Fund (7120)
Increase estimated revenues and appropriations by $200,000. The Library received a distribution from the William Wagner 1988 Inter Vivos Trust. $200,000 $200,000 $0
Total Library Gift Fund (7120) $200,000 $200,000 $0
Reprogram Excess Appropriations from Airport - Airline Terminal Expenses to Terminal Boilers.

Reprogram Excess Appropriations from Airfield Marking Signage Design to Passenger Boarding Bridge Maintenance.

Reprogram Excess Appropriations from South Terminal Apron Rehab to South Airfield Development.

Reprogram Excess Appropriations from Lessee Building Maintenance to 6190 Botello Remodel.

Page 6 of 6 ends

CITY OF SANTA BARBARA

ORDINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: December 5, 2023 Oscar Gutierrez, Chair
TIME: 12:00 p.m. Mike Jordan
PLACE: Council Chambers Kristen W. Sneddon
Office of the City Office of the City
Administrator Attorney
Nicole Grisanti Sarah J. Knecht
Supervisor, City Administrator’s Office City Attorney
IN-PERSON PUBLIC COMMENT: Any person wishing to address the Ordinance Committee should first complete and deliver a "Request to Speak" form prior to the time that public comment is taken up by the Committee Member. Each speaker will be given a total of 3 minutes to address the Committee. The Ordinance Committee, upon majority vote, may decline to hear a speaker on the grounds that the subject matter is beyond their jurisdiction.

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

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.

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.

Please click the link below to join the webinar:
https://santabarbaraca-gov.zoom.us/j/82617934816?pwd=TDE2RmNVdzdlK1BpOVVKTFNaa1UvZz09 Passcode: 426505
Or One tap mobile:

Webinar ID: 826 1793 4816
International numbers available: https://santabarbaraca-gov.zoom.us/u/kenXH43DJm File Code No. 120.03
Ordinance Committee Agenda
December 5, 2023

Page 2 ends

ITEMS FOR CONSIDERATION
SUBJECT: Tenant Protection Ordinance
RECOMMEDATION: That Ordinance Committee consider and forward to City Council, for introduction and subsequent adoption, an Ordinance of the Council of the City of Santa Barbara amending the Santa Barbara Municipal Code by amending Sections 26.50.010, 26.50.040,

26.50.060, and 26.50.070 relating to Just Cause Eviction; by adding Section 26.50.055 to provide a Tenant Right of First Refusal to Re-rent following a No-Fault Just Cause Eviction; by adding Section 26.50.075 relating to Occupancy following a Substantial Remodel, and by adding Chapter 26.60 relating to Protection of Tenants from Harassment.

CITY OF SANTA BARBARA

ORDINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Ordinance Committee
FROM: City Attorney’s Office
SUBJECT: Tenant Protection Ordinance
RECOMMENDATION:

That Ordinance Committee consider and forward to City Council, for introduction and subsequent adoption, an Ordinance of the Council of the City of Santa Barbara amending the Santa Barbara Municipal Code by amending Sections 26.50.010, 26.50.040, 26.50.060, and 26.50.070 relating to Just Cause Eviction; by adding Section 26.50.055 to provide a Tenant Right of First Refusal to Re-rent following a No-Fault Just Cause Eviction; by adding Section 26.50.075 relating to Occupancy following a Substantial Remodel, and by adding Chapter 26.60 relating to Protection of Tenants from Harassment.

BACKGROUND:

The Tenant Protection Act of 2019 (Stats. 2019, ch. 597; AB 1482) established statewide just cause eviction and relocation assistance protections for residential tenants, but also authorized cities to enact more protective local regulations which supersede State law.

On December 8, 2020, the City Council adopted Ordinance No. 5979 to establish local regulations that were more protective than the provisions of Civil Code Section 1946.2 as it existed at that time. On March 21, 2023, the City Council adopted Ordinance No. 6107 as an urgency measure further amending Municipal Code Chapter 26.50 to strengthen tenant protections regarding no-fault just cause eviction.

Shortly thereafter, the County Board of Supervisors adopted similar tenant protection measures applicable to unincorporated areas, and on July 11, 2023, the Board of Supervisors adopted an ordinance to provide tenants a right of first refusal to re-rent a unit following a no-fault just cause eviction.

During the current legislative session, the Legislature adopted Senate Bill 567 further amending Civil Code Section 1946.2 to provide additional tenant protections. The bill was signed by the Governor and is chaptered as 2023 Statutes, Chapter 290. The proposed Agenda Item No. 1
File Code No. 120.03
Ordinance Committee Agenda Report
Tenant Protection Ordinance
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ordinance will continue to provide greater protections than under Civil Code Section 1946.2 by providing higher relocation assistance amounts than State law, making permanent the temporary protections provided under Civil Code Section 1946.2, which were scheduled to sunset in 2030, and having an earlier effective date than some of the provisions adopted by Senate Bill 567. Further, the proposed ordinance adds a new Municipal Code chapter designed to prevent tenant harassment, which is modeled after similar ordinances of other California cities including Oakland and Los Angeles.

On October 27, 2023 a copy of the draft ordinance was distributed for review and comment to interested persons, including tenant and rental owner organizations and representatives.

DISCUSSION:

This report is organized by subject matter. The ordinance sections and page numbers that correspond to the subject matter are noted in parenthesis following each subject heading.

Right of First Refusal to Re-rent following a No-fault Just Cause Eviction (Section 6, page 12)
The new right of first refusal to re-rent is modeled after the recently adopted County ordinance. It is contained in Section 6 of the proposed ordinance, which adds Section

26.50.055 to the Municipal Code to do the following:
 Require an owner to give written notice to tenants of the right of first refusal at the same time the tenant is given notice of the termination of tenancy and notice of right to relocation benefits.
 Give tenants who are evicted for no-fault just cause a right of first refusal to re-rent the unit or a comparable unit for a period of two years.  Require tenants who wish to take advantage of the right of first refusal to keep the owner apprised of the tenants’ contact information.
 Require owners to make the offer to re-rent in the form of a written lease that complies with the City’s existing requirements under Chapter 26.40.  Require owners to establish the rental price in accordance with Civil Code § 1954.53, when applicable.
 Limit the rent for a re-rental following a no-fault eviction based on substantial remodel to an increase of 10% or 5% plus CPI, whichever is lower, of the rent at the time of the no-fault eviction.

The right to re-rent is additional to rights to re-rent under Civil Code Section 1946.2 (b)(2)(A)(vi) [right to re-rent if an intended family member fails to occupy a unit as their primary residence for at least 12 months] and 1946.2 (b)(2)(D)(iv) [right to re-rent if substantial remodel is not commenced or completed].

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Tenant Protection from Harassment (Section 8, Pages 13 - 17) Section 8 of the proposed ordinance will add a new Municipal Code Chapter 26.60 to protect tenants from willful harassment by owners and owners’ agents, contactors, subcontractors, or employees. Examples of activities that could constitute prohibited harassment include:
 Reducing or eliminating housing services required by a lease, contract, or law, including the elimination of parking if provided in the tenant’s lease or contract, or access to common areas or amenities.
 Failing to perform and timely complete legally required repairs and maintenance.  Failing to exercise due diligence in completing repairs and maintenance once undertaken or failing to follow appropriate industry standards designed to minimize exposure to noise, dust, lead paint, mold, asbestos, or other building materials with potentially harmful health impacts.
 Abusing the owner's right of access into a rental housing unit as established and limited by California Civil Code Section 1954, including entering or photographing portions of a rental unit that are beyond the scope of lawful entry or inspection.  Threatening a tenant, by work or gesture, with physical harm.  Misrepresenting to a tenant that the tenant is required to vacate a rental unit or enticing a tenant to vacate a rental unit through intentional misrepresentation or the concealment or omission of a material fact.
 Repeatedly offering unwanted payments or other inducements to a tenant to vacate.
 Threatening to report a tenant or other persons to any local, state, or federal agency on the basis of their perceived or actual immigration status.  Inquiring as to the immigration or citizenship status of a tenant, prospective tenant additional tenant, occupant, or prospective additional occupant of a rental unit.  Refusing to acknowledge or accept receipt of lawful rent payments.  Engaging in activity prohibited by federal, state, or local housing anti-discrimination laws.
 Retaliating, threatening, or interfering with tenant organizing activities, including forming or participating in tenant associations and unions.  Retaliating, threatening, or interfering with a tenant’s right to appear at Council meetings or file complaints with the City.
 Interfering with a tenant's right to privacy, including video or audio recording that captures the interior of a tenant's bedroom, bathroom, changing room, fitting room, dressing room, or the interior of any other area in which the occupant has a reasonable expectation of privacy.

The items are stated in full in proposed Section 26.60.010.

Enforcement of the anti-harassment protections would be by civil proceedings brought by an aggrieved tenant. Remedies include:

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 Actual damages.
 In the court’s discretion, reasonable attorney’s fees and costs.  Upon a showing that the owner has acted with oppression, fraud, or malice, up to three times the actual damages.
 An award may also be entered for punitive damages for the benefit of the tenant against the owner. Civil penalties up to $10,000 per violation, tenant relocation, and other appropriate relief.
 Injunctive relief and any other remedy provided by law.

Updates to Existing Just Cause Provisions (Sections 2 – 5, 7, Pages 2 – 13) Currently, Municipal Code Section 26.50.010 precludes owners of rental units from terminating a tenancy except for just cause. Just cause is either at-fault just cause or nofault just cause as defined in Municipal Code Section 26.50.070. Section 2 of the proposed ordinance will incorporate the definitions of at-fault just cause and no-fault just cause as adopted by Senate Bill 567. The amendment also declares existing law through an express statement that a termination of tenancy subject to the just cause requirement includes any attempt by an owner to recover a rental unit, including through expiration of a lease or failing or choosing not to renew a lease.

Ordinance Section 3 amends Municipal Code Section 26.50.040 to add a requirement for notification of a tenant’s right of first refusal to re-rent in connection with a no-fault just cause termination of a tenancy. It also adds a requirement to provide all notices required under Civil Code Section 1946.2 as amended by Senate Bill 567.

Existing remedies for violations of the just cause requirements include defense to an unlawful detainer action, civil damages, and administrative or criminal enforcement.

Section 4 of the proposed ordinance amends Municipal Code Section 26.50.060 to add civil damage awards mirroring those under amendments made by Senate Bill 567, including the potential for a court to award for up to three times actual damages in civil cases where the owner’s conduct is willful or done with fraud, malice, or oppression.

Just cause for termination of a tenancy is defined in Municipal Code Section 26.50.070.

Several amendments to the definitions of no-fault just cause are proposed in Section 5 of the draft ordinance starting at page 9. First, Subsection B. 2. a. amends requirements for no-fault just cause based upon recovery of a rental unit for the purpose of occupancy by the owner or a member of the owner’s family. The amendment will require the intended occupant of the unit to move into the rental unit within 90 days after the tenant vacates and to live at the unit for at least 12 consecutive months, otherwise, the tenant will have the right to re-rent the unit on the same terms as when the tenancy was terminated along with reimbursement of moving expenses. An exception exists where the intended occupant moves into the rental unit within 90 days but dies before having occupied the unit for 12 months. Second, Subsection B. 2. d. relating to demolition or substantial remodel of unit is amended to add a requirement for an opinion from an independent Ordinance Committee Agenda Report
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construction expert that the work cannot be reasonably accomplished in a safe manner with the tenant in place and that the work requires the tenant to vacate the unit for at least 30 consecutive days. That subsection is also amended to delete the requirement for early tenant alter notices because the notices were causing confusion and not serving their intended purpose. Further, with respect to the definition of substantial remodel, Subsection G of Section 26.50.070 will be amended to make it clear that any days where a tenant could continue living in a rental unit without violating health, safety, and habitability laws cannot be counted when determining if the work requires a tenant to vacate for at least 30 days.

Finally, Section 7 of the draft ordinance adds Municipal Code Section 26.50.075 to preclude an owner from re-renting a unit that has been substantially remodeled until all the permitted work has been inspected and certified as complete by the Building & Safety Division.

ENVIRONMENTAL REVIEW:

This Ordinance is not subject to environmental review pursuant to the State CEQA Sections 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and 15061 (b)(3), the common sense exception, because this Ordinance has no potential for resulting in physical change to the environment directly or indirectly in that it merely regulates existing physical development.

ATTACHMENT: Proposed Ordinance
PREPARED BY: Daniel S. Hentschke, Assistant City Attorney SUBMITTED BY: Sarah J. Knecht, City Attorney
APPROVED BY: City Administrator's Office

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1 ORDINANCE NO. _____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING THE SANTA BARBARA
MUNICIPAL CODE BY AMENDING SECTIONS 26.50.010,

26.50.040, 26.50.060, AND 26.50.070 RELATING TO JUST
CAUSE EVICTION; BY ADDING SECTION 26.50.055 TO
PROVIDE A TENANT RIGHT OF FIRST REFUSAL TO RERENT FOLLOWING A NO-FAULT JUST CAUSE EVICTION; BY ADDING SECTION 26.50.075 RELATING TO

OCCUPANCY FOLLOWING A SUBSTANTIAL REMODEL,
AND BY ADDING CHAPTER 26.60 RELATING TO

PROTECTION OF TENANTS FROM HARASSMENT

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

SECTION 1. Findings and Determinations. The City Council finds and determines as follows:

A. Safe, decent, and sanitary housing is a human necessity and right.

B. The City Council reaffirms its General Plan Housing Element goal, first stated in 2005, of “ensuring affordable housing opportunities for all economic levels in the community, while protecting the character of established neighborhoods.” (2015 Housing Element, p.57.) The City Council also recognizes that providing a wide range of housing options is important to maintain an economically viable and socially diverse population, and to retain and house the City’s local workforce. The City’s General Plan Housing Element identifies renter-occupied housing units as comprising nearly 60% of the housing available in the City. (2015 Housing Element, p.26.) The Housing Element also documents that given local housing costs, nearly 44% of all households and almost 50% of renters are overpaying for housing. (2015 Housing Element, p.50.) Both the total percentage of City renters and the percentage of renters overpaying for housing are

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2 higher than statewide averages. Therefore, the City Council desires to establish reasonable protections for City residents living in rental housing that recognize the important role that rental housing plays in the provision of affordable housing.

C. The Tenant Protection Act of 2019 (Stats. 2019, ch. 597; AB 1482) established statewide just cause eviction and relocation assistance protections for residential tenants, but also authorized cities to enact more protective local regulations which supersede state law. In 2020, the City Council adopted Ordinance No. 5979 to establish local regulations that were more protective than the provisions of Civil Code Section 1946.2 as it existed at that time. The Legislature has amended Civil Code Section 1946.2 to provide additional tenant protections by the adoption of SB 567 in 2023 (Stats. 2023, ch. 290.) The amendments to Chapter 26.50 made by this ordinance provide greater protections than under Civil Code Section 1946.2. The City Council makes this binding finding because this Ordinance provides higher relocation assistance amounts than state law. In addition, this Ordinance provides additional tenant protections by making permanent the temporary protections provided under Civil Code Section 1946.2, which would otherwise sunset in 2030.

SECTION 2. Section 26.50.010 of Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows:

26.50.010 Just Cause for Residential Evictions.

A. The owner of a rental unit shall not terminate the tenancy of a qualified tenant without just cause stated in full in the termination notice.

B. Just cause includes at-fault just cause or no-fault just cause as defined in Section 26.50.070.

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3 C. Just cause also includes at-fault just cause as defined in Civil Code Section 1946.2 (b)(1) and no-fault just cause as defined in Civil Code Section 1946.2(b)(2) as adopted by Section 2 of Chapter 290 of 2023 California Statutes.

D. If there is a conflict in a definition of just cause under Subsection B and Subsection C the definition under Subsection C will be applied unless the definition under Subsection B is more protective of tenant rights.

E. Termination of tenancy includes any attempt by an owner to recover possession of a rental unit, including any attempt to recover possession of the rental property for expiration of a lease, or choosing not or failing to offer a renewal of a lease.

This Subsection is declarative of existing law.

SECTION 3. Section 26.50.040 of Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows:

26.50.040 Just Cause Eviction Notice Requirements.

A. The written notice to terminate tenancy shall state in full the facts and circumstances constituting the at-fault just cause or no-fault just cause for termination.

B. A written notice to terminate tenancy based upon no-fault just cause shall be accompanied by a supplemental notice informing each qualified tenant of their right to and the amount of a relocation assistance payment required by this Chapter.

C. Before the owner of a rental unit issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to each qualified tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the

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4 time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.

D. A written notice to terminate tenancy based upon a no-fault just cause eviction shall be accompanied by a supplemental notice informing each qualified tenant of the right of first refusal under Section 26.50.055. The notice shall advise the tenant of the owner’s contact information and of the tenant’s obligation to provide the tenant’s contact information to owner.

E. In addition to the requirements of this Section, a written notice of termination must contain all of the information required by Civil Code Section 1946.2 as adopted by Section 2 of Chapter 290 of 2023 California Statutes.

SECTION 4. Section 26.50.060 of Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows :

26.50.060 Remedies.

A. Failure to provide each of the notices required by this chapter shall be a defense to any unlawful detainer action.

B. Failure to include all required information in the notices required by this chapter shall be a defense to any unlawful detainer action.

C. Failure to make a relocation assistance payment in a timely manner shall be a defense to any unlawful detainer action.

D. Any violation of this chapter shall entitle the aggrieved tenant to actual damages according to proof and costs and attorney’s fees.

E. The City Attorney is authorized to enforce this chapter through administrative, civil, or criminal action. The City Attorney is further authorized to bring

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5 actions for injunctive relief on behalf of the City. The City Attorney shall seek recovery of costs, expenses, and attorney’s fees as allowed by law.

F. An owner who attempts to terminate a tenancy in material violation of this Chapter shall be liable to the tenant in a civil action for all the following:

1. Actual damages.

2. In the court’s discretion, reasonable attorney’s fees and costs.

3. Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.

SECTION 5. Section 26.50.070 of Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows:

26.50.070 Definitions.

A. EARLY TENANT ALERT NOTICE. An additional written notice of no-fault just cause termination of a tenancy provided at least 60 days before the notice of termination required by Section 26.50.040 A.

B. JUST CAUSE. At-fault just cause and no-fault just cause, as follows:

1. At-fault just cause, which is any of the following:
a. Default in the payment of rent.
b. A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.

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6 c. Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
d. Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
e. The tenant had a written lease that terminated on or after the effective date of this chapter, and after a written offer from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of the same duration and with similar other terms, provided that those terms do not violate this chapter or any other provision of law.
f. Criminal activity by the tenant on the rental unit, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the rental unit, that is directed at any owner or agent of the owner of the rental unit; provided that criminal activity or criminal threat directed at a tenant who is a victim of domestic violence shall not be the basis for at-fault or no-fault just cause eviction of the tenant who is a victim of domestic violence. g. Assigning or subletting the premises in violation of the tenant’s lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. h. The tenant’s refusal to allow the owner to enter the rental unit as authorized by Sections 1101.5 and 1954 of the Civil Code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.

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7 i. Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. j. The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
k. When the tenant fails to deliver possession of the rental unit after providing the owner written notice as provided in Civil Code Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.

2. No-fault just cause is any of the following:
a. The owner seeks in good faith to recover possession of the rental unit for use and occupancy by the owner or their spouse, domestic partner, children, grandchildren, parents, or grandparents if a provision of the lease allows the owner to terminate the lease when the owner, or their spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the rental unit. for a minimum of 12 continuous months as that person’s primary residence. This Subsection does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property. The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall

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8 additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner. The proof shall be provided upon request and may include an operating agreement and other non-public documents. This subsection applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the residential unit as a primary residence for at least 12 consecutive months. If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.

However, if the intended occupant moves into the rental unit within 90 days after the tenant vacates but dies before having occupied the rental unit as a primary residence for 12 months, this will not be considered a failure to comply with this section or a material violation of this section by the owner.
b. The owner seeks in good faith to recover possession to permanently withdraw the rental unit from the rental market. c. The owner seeks in good faith to comply with any of the following:
i. An order issued by a government agency or court relating to habitability that necessitates vacating the rental unit.

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9 ii. An order issued by a government agency or court to vacate the rental unit.
iii. A local ordinance that expressly requires vacating the rental unit.
d. The owner seeks in good faith to recover possession to totally demolish or to substantially remodel the rental unit, provided the owner has done all of the following:
i. Given the tenants an early tenant alert notice advising the tenants of the owner’s intent to terminate the lease in reliance on this subsection.
iii. Obtained all permits necessary to carry out the demolition or substantial remodel from the applicable governmental agencies. ii. For a proposed substantial remodel, obtained a written opinion supported by a detailed explanation and signed under penalty of perjury from an independent construction expert, who holds a current and valid California Contractors State License Board license with classifications in A, B, or B-2, as applicable to the proposed work, stating that the work cannot be reasonably accomplished in a safe manner with the tenant in place and that the proposed work requires the tenant to vacate the rental unit for at least consecutive 30 days. The person preparing the report may not be the owner, the licensed contractor retained to perform the work, or otherwise be financially interested in the work other than payment for preparation of the report. The

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10 report must be filed concurrently with the building permit application for the proposed work.
iii. Served the tenants with a copy of the permits along with a written notice stating the reason for the termination, the type and scope of work to be performed, why the work cannot be reasonably accomplished in a safe manner with the tenant in place, and why the work requires the tenant to vacate the residential real property for at least 30 consecutive days. The copy and notice shall be contained in or served concurrently with the notice of termination required by Section 26.50.040. iv. Filed with the Community Development Department a copy of the written opinion signed under penalty of perjury from the construction expert and the documents served on the tenant under subsection 2.d.iii.

C. OWNER. An owner as defined in Civil Code Section 1954.51. For purposes of Subsection B. 2. a. of this Section, owner also has the meaning defined in Civil Code Section 1946.2 (a)(2)(viii)(II).

D. QUALIFIED TENANT. A tenant who has continuously and lawfully occupied a rental unit for 12 months.

E. RENT. The total consideration charged or received by an owner in exchange for the use or occupancy of a rental unit.

F. RENTAL UNIT. Any unit in any real property, regardless of zoning status, including the land appurtenant thereto, that is rented or available for rent for residential use or occupancy (regardless of whether the unit is also used for other purposes),

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11 together with all housing services connected with use or occupancy of such property, such as common areas and recreational facilities held out for use by the tenant.

G. SUBSTANTIALLY REMODEL. The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable Federal, State, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the rental unit for at least 30 consecutive days. Substantial remodeling does not include cosmetic improvements, including painting and decorating, minor repairs, routine maintenance, or other work that can be performed safely without having the rental unit vacated. For purposes of this Subsection, a tenant is not required to vacate a rental unit on any days where a tenant could continue living in the rental unit without violating health, safety, and habitability codes and laws.

H. TENANT. Any renter, tenant, subtenant, lessee, or sublessee, or person entitled by written or oral agreement to occupy a rental unit, or any successor of any of the foregoing.

SECTION 6. Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended by adding Section 26.50.055 to read as follows:

26.50.055 Right to Re-rent Following No-Fault Just Cause Eviction.

A. The provisions of this Section are additional to the rights to re-rent provided to tenants under subsections (b)(2)(A)(vi) and (b)(2)(D)(iv) of Civil Code Section 1946.2 as adopted by Section 2 of Chapter 290 of 2023 California Statutes.

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12 B. A qualified tenant subject to a no-fault just cause termination of tenancy shall have a right of first refusal to re-rent the rental unit or a comparable new rental unit at the same property for a period of two years following the termination of tenancy, provided that the tenant has kept the owner notified of the tenant’s contact information according to the notice provided under Section 26.50.040 C.

C. An owner seeking to rent a unit to which a person has a right of first refusal to re-rent under subsection B. shall:

1. Have given the supplemental notice required by Section 26.50.040 D.

2. Offer each qualified tenant having a right of first refusal with respect to a unit a rental agreement in compliance with Section 26.40.010 of this Code. The offer shall be in the form of a written lease and shall remain open for acceptance for a period of not less than 30 days.

3. For a re-rental following a no-fault just cause termination of tenancy on grounds of a substantial remodel of the unit, establish the rental price for the unit at no more than gross rental rate charged for the unit at the time of the notice of termination of tenancy plus 5 percent plus the change in the cost of living, or 10 percent, whichever is lower, of the gross rental rate charged for the unit at the time of the notice of termination of tenancy.

4. For a tenancy not subject to paragraph 3, establish the rental price in accordance with Civil Code § 1954.53 when applicable.

SECTION 7. Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended by adding Section 26.50.075 to read as follows:

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13 26.50.075 Completion of Substantial Remodel Work.

An owner who has recovered possession of a rental unit for purposes of substantial remodel must not re-rent the unit until all permitted work has been completed and the Chief Building Official or his or her authorized representative has inspected the work and confirmed in writing that the permitted work has been completed.

SECTION 8. Title 26 of the Santa Barbara Municipal Code is amended by adding Chapter 26.60 to read as follows:

Chapter 26.60 Protection of Tenants

26.60.010 Tenant protections

26.60.020 Civil Enforcement

26.60.010 Tenant Protections.

A. It is a violation of this Section for an owner or the owner's agent, contractor, subcontractor, or employee, to willfully engage in a course of conduct that adversely affects a tenant’s use or enjoyment of a rental unit, housing opportunity, or housingrelated services or facilities, that serves no lawful purpose, and includes but is not limited to the following:

1. Reducing or eliminating housing services required by a lease, contract, or law, including the elimination of parking if provided in the tenant’s lease or contract, or access to common areas or amenities, except as necessary to comply with court order or local or state law, or to lawfully create an accessory dwelling unit or additional housing.

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14 2. Failing to perform and timely complete necessary repairs and maintenance required by local or state law.

3. Failing to exercise due diligence in completing repairs and maintenance once undertaken or failing to follow appropriate industry repair, containment or remediation protocols designed to minimize exposure to noise, dust, lead paint, mold, asbestos, or other building materials with potentially harmful health impacts.

4. Abusing the owner's right of access into a rental housing unit as established and limited by California Civil Code Section 1954, including entering or photographing portions of a rental unit that are beyond the scope of lawful entry or inspection.

5. Threatening a tenant, by work or gesture, with physical harm.

6. Misrepresenting to a tenant that the tenant is required to vacate a rental unit or enticing a tenant to vacate a rental unit through intentional misrepresentation or the concealment or omission of a material fact. This includes misrepresenting a tenant’s rights under Chapters 26.40 and 26.50 of this Code.

7. Offering payments or other inducements to a tenant to vacate more than once in any six months, after the tenant has notified the owner in writing that the Tenant does not desire to receive further offers of payments or other inducements to vacate

8. Threatening to report a tenant or other person known to the owner to be associated with a tenant to any local, state, or federal agency on the basis of their

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15 perceived or actual immigration status. The prohibition shall not be construed as preventing communication with such agencies regarding an alleged immigration violation.

9. Inquiring as to the immigration or citizenship status of a tenant, prospective tenant additional tenant, occupant, or prospective additional occupant of a rental unit, or requiring any of these people to make any statement, representation, or certification concerning their immigration or citizenship status.

10. Refusing to acknowledge or accept receipt of lawful rent payments as set forth in a lease agreement or as established by the usual practices of the parties or applicable law.

11. Engaging in activity prohibited by federal, state, or local housing antidiscrimination laws.

12. Retaliating, threatening, or interfering with tenant organizing activities, including forming or participating in tenant associations and unions.

13. Retaliating, threatening, or interfering with a tenant’s right to petition the government for redress of grievances.

14. Interfering with a tenant's right to privacy. This includes, but is not limited to: video or audio recording that captures the interior of a tenant's bedroom, bathroom, changing room, fitting room, dressing room, or the interior of any other area in which the occupant has a reasonable expectation of privacy with the intent to invade the privacy of a person or persons inside, entering or photographing portions of a Rental Unit that are beyond the scope of a lawful entry or inspection, unreasonable inquiry into a

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16 Tenant's relationship status or criminal history, and unreasonable restrictions on or inquiry into overnight guests.

B. An owner or an owner's agent, contractor, subcontractor, or employee, in the course of the leasing or offering to lease a rental unit, is prohibited from requesting information that violates a Tenant's right to privacy, including but not limited to residence or citizenship status or social security number, except as required by law or, in the case of a social security number, for the purpose of obtaining information for the qualifications for a tenancy, or not release such information except as required or authorized by law.

This includes a refusal to accept equivalent alternatives to information or documentation that does not concern immigration or citizenship status, e.g., an Individual Taxpayer Identification Number (ITIN).

C. An owner or an owner’s agent, contractor, subcontractor, or employee is prohibited from retaliating against a tenant because of the tenant's exercise of rights under this Section or Chapter 26.40 or 26.50 of this Code.

D. Nothing in this Section shall be construed as to prevent an owner or an owner’s agent, contractor, subcontractor, or employee from lawfully exercising the owner’s rights under Chapter 26.40 or 26.50 of this Code.

E. As used in this Chapter, owner has the same meaning as defined in Section

26.50.070 and includes landlord as defined in Section 26.40.030 of this Code.

26.60.020 Civil Enforcement.

A. An aggrieved tenant under this Chapter may institute civil proceedings as provided by law against an owner or an owner’s agent, contractor, subcontractor, or

ORDINANCE COMMITTEE

STAFF DRAFT SHOWING CHANGES
FROM CURRENT CODE 12/05/23
17 employee alleged to have violated the provisions of this Chapter, regardless whether the rental unit remains occupied or has been vacated due to the alleged violation.

B. A tenant prevailing in court may be awarded:

1. Actual damages.

2. In the court’s discretion, reasonable attorney’s fees and costs.

3. Upon a showing that the owner has acted with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.

C. The court may impose civil penalties up to $10,000 per violation, tenant relocation, and other appropriate relief.

D. Injunctive relief and any other remedy provided by law.

SECTION 9. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter or any part hereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Chapter of any part hereof. The City Council declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional.

SECTION 10. The City Council finds that, on the basis of the whole record and exercising its independent judgment, this Ordinance is not subject to environmental review pursuant to the State Guidelines for Implementation of the California Environmental Quality Act Sections 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and 15061 (b)(3) because this Ordinance has no potential for resulting in physical change to the environment directly or indirectly in that it merely regulates existing physical development.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Employee Recognition – Service Award Pins
RECOMMENDATION:

That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through December 31, 2023.

DISCUSSION:

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

Attached is a list of those employees who will be awarded pins for their service through December 31, 2023.

ATTACHMENT: December 2023 Service Awards
PREPARED BY: Talhia Dorado, Administrative Specialist
SUBMITTED BY: Rebecca Bjork, City Administrator
APPROVED BY: City Administrator's Office
Agenda Item No. 1
File Code No. 120.04

ATTACHMENT
December 2023 SERVICE AWARDS
December 5, 2023 Council Meeting
5 Years
Wendy Levy, Human Resources Director, Human Resources Department Beate Bjoerklund, Supervising Librarian, Library Department Alena Leonatti, Grounds Maintenance Worker II, Parks & Recreation Department Caitlin Walker, Project Engineer II, Public Works Department Alexis Flores, Senior Project Engineer Unclassified, Public Works Department Matthew Thomas, Fleet Services Technician I, Public Works Department 10 YEARS
Marisa Kahn, Risk Analyst II, Finance Department
Christopher Clark, Environmental Services Specialist I, Sustainability & Resilience Department
15 YEARS
Mike Witbeck, Senior Traffic Signal Technician, Public Works Department 25 YEARS
Alec Hardy, Information Technology Supervisor, Information Technology Department Michael Brown, Police Sergeant, Police Department
Scott Klacking, Police Officer, Police Department
George Jimenez, Treatment Plant Technician, Public Works Department 30 YEARS
Alfonso Lopez, Water Distribution Operator Technician I, Public Works Department Amador Escalante, Wastewater Collection System Superintendent, Public Works Department
40 YEARS
Richard Marshall, Water Distribution Operator Technician II, Public Works Department 07/18/2023 Santa Barbara City Council Minutes Page 1 of 8

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
JULY 18, 2023
COUNCIL CHAMBERS, CITY HALL, 735 ANACAPA STREET,
SANTA BARBARA, CA 93101; AND 1030 CACIQUE STREET,
SANTA BARBARA, CA 93103

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:00 p.m. (The Finance Committee and Ordinance Committee, which normally meet at 12:00 p.m., did not meet on this day.)

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Alejandra Gutierrez (remote participation), Oscar Gutierrez, Meagan Harmon, Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: None.

Staff present: Assistant City Administrator Rene Eyerly, City Attorney Sarah Knecht, City Clerk Niko Lopez.

CEREMONIAL ITEMS

1. Subject: Parks Make Life Better Month - July 2023 (120.04) Action: Proclamation presented by Mayor Rowse, received with remarks by Evelyn Feck.

2. Subject: Employee Recognition – Service Award Pins
Recommendation: That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through July 31, 2023.

Agenda Item No. 2
File Code No.
07/18/2023 Santa Barbara City Council Minutes Page 2 of 8 Action: Assistant City Administrator Rene Eyerly read the names of employees who received service award pins for their years of service. Mayor Rowse presented a proclamation to Patrick Henry, who made a brief statement.

CHANGES TO THE AGENDA
Assistant City Administrator Rene Eyerly announced that the following items are to be rescheduled to be heard at a future meeting:

4. Subject: Resolution Denying the Appeal and Upholding the Decision of the Single Family Design Board Regarding 1269 Ferrelo Road [Resolution] (640.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Denying the Appeal of Rose Wills, Charlie Boss, Derek Booth, and A. Michael Marzolla to Reverse the Single Family Design Board’s Decision Approving a Three-Story, Single-Unit Residence, an Attached Garage, and Site Improvements Located at 1269 Ferrelo Road and Making the Findings Supporting the Action.

6. Subject: Resolution Denying the Appeal and Upholding the Decision of the Single Family Design Board Regarding 3208 Laurel Canyon Road [Resolution] (640.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Denying the Appeal of the Law Office of Marc Chytilo on Behalf of Anita Williamson to Reverse the Single Family Design Board’s Decision Approving a Two-Story, Single Unit Residence Development with First and Second Story Additions and a New One-Car Carport at 3208 Laurel Canyon Road and Making the Findings Supporting the Action.

CONSENT CALENDAR (Items Nos. 7 – 16)
The titles of the Resolutions were read.

Motion:

Councilmembers Friedman/Jordan to approve the Consent Calendar as recommended.

Vote:

Unanimous roll call vote.

7. Subject: Summary Vacation of Portions of Alisal Road at 444 Las Alturas Road [Resolution] (530.04)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Ordering the Summary Vacation of a Portion 07/18/2023 Santa Barbara City Council Minutes Page 3 of 8 of Public Street Adjacent to the Real Property Commonly Known as 444 Las Alturas Road (APN 019-282-010).

Action: Approved the recommendation; Resolution No. 23-096 (July 18, 2023 Council Agenda Report and any attachments; proposed Resolution).

8. Subject: Approving Amendments to the Records Retention Policy Held by the Human Resources Department [Resolution] (160.06)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Approving a Revised Records Retention Schedule, Authorization to Destroy Applicable Records Pursuant to That Schedule and Rescinding Resolution No.16-005.

Action: Approved the recommendation; Resolution No. 23-097 (July 18, 2023 Council Agenda Report and any attachments; proposed Resolution).

9. Subject: Fiscal Year 2023 Interim Financial Statements for the Eleven Months Ended May 31, 2023 (250.02)
Recommendation: That Council accept the Fiscal Year 2023 Interim Financial Statements for the eleven months ended May 31, 2023.

Action: Approved the recommendation (July 18, 2023 Council Agenda Report and any attachments).

10. Subject: Waterfront Department Proposed Assignment of License Agreement No. 27,013 – Epic Cruises Inc. [Agreement] (330.04) Recommendation: That Council approve the Assignment of License Agreement No. 27,013 from Epic Cruises Inc. DBA Celebration Cruises to Sagamore Stearns LLC for Azure Seas and Whisper.

Action: Approved the recommendation; Agreement No. 27,013 (July 18, 2023 Council Agenda Report and any attachments).

11. Subject: Contract Amendment for Habitat Restoration Maintenance and Monitoring for the Westmont Road Storm Drain Rehabilitation Project [Agreement] (530.04)
Recommendation: That Council authorize the Public Works Director to execute the First Contract Amendment with Dudek, for habitat restoration maintenance and monitoring services for the Westmont Road Storm Drain Rehabilitation Project, Contract No. 2200116, in the amount of $48,130, for a total expenditure authority of $83,130.
07/18/2023 Santa Barbara City Council Minutes Page 4 of 8 Action: Approved the recommendation; Agreement No. 28,387 (July 18, 2023 Council Agenda Report and any attachments).

12. Subject: Contract Extension for Armored Courier Services [Agreement] (210.01)
Recommendation: That Council authorize the Finance Director to extend the agreement for Fiscal Year 2024 with Garda World in an amount not to exceed $50,000 for armored courier services.

Action: Approved the recommendation; Agreement No. 28,388 (July 18, 2023 Council Agenda Report and any attachments).

13. Subject: Approval of Final Map and Execution of Agreements for 691 North Hope Avenue, Oak Terrace Residences [Agreement] (640.08) Recommendation: That Council approve and authorize the City Administrator to execute and record Final Map Number 20,840 and standard Agreements relating to the approved 6-lot residential subdivision at 691 North Hope Avenue, Oak Terrace Residences.

Action: Approved the recommendation; Agreement Nos. 28,389, 28,390, 28,391 (July 18, 2023 Council Agenda Report and any attachments).

14. Subject: Special Recruitment for the Fire and Police Commission (140.05) Recommendation: That Council authorize and direct the City Clerk’s Office to accept applications through Thursday, August 17, 2023 at 5:00 p.m. for the special recruitment of one member to the Fire and Police Commission, with the interviews to be held at the August 29, 2023 City Council meeting, with appointments at the September 12, 2023 City Council meeting.

Action: Approved the recommendation (July 18, 2023 Council Agenda Report and any attachments).

15. Subject: Special Recruitment for the Architectural Board of Review Recommendation: That Council authorize and direct the City Clerk’s Office to accept applications through Thursday, August 17, 2023, at 5:00 p.m. for the special recruitment of one member to the Architectural Board of Review (ABR), with the interviews held and appointments made at the August 29, 2023, City Council meeting.

Action: Approved the recommendation (July 18, 2023 Council Agenda Report and any attachments).
07/18/2023 Santa Barbara City Council Minutes Page 5 of 8

16. Subject: Appointment of Councilmember Harmon as Liaison to United Way of Santa Barbara County Brighter Futures Childcare Coalition (140.05) Recommendation: That Council consider the appointment of Councilmember Harmon as Liaison to the United Way of Santa Barbara County Brighter Futures Childcare Coalition.

Action: Approved the recommendation (July 18, 2023 Council Agenda Report and any attachments).

This concluded the Consent Calendar.

PUBLIC COMMENT
Members of the Public: David Crocket Williams; Steve Leider; Bryan Rosen; Graham Martin-Setaro.

PULLED CONSENT ITEMS

3. Subject: Resolution Denying the Appeal and Upholding the Decision of the Architectural Board of Review Regarding 425 Santa Barbara Street [Resolution] (640.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Denying the Appeal of A. Barry Cappello (representing Platform SB, LLC) to Reverse the Architectural Board of Review’s Decision Approving a Multi-Unit Housing Project Located at 425 Santa Barbara Street and Making the Findings Supporting the Action.

Documents:
- July 18, 2023, report from the Community Development Director; - Proposed Resolution.

Speakers:
- Staff: None.
- Members of the Public: No one wished to speak.

Motion:

Councilmembers O.Gutierrez/A. Gutierrez to approve the recommendation.

Vote:

Majority roll call vote (Ayes: Councilmembers Harmon, Friedman, O.

Gutierrez, A. Gutierrez, Jordan, Mayor Rowse; Noes: Councilmember Sneddon); Resolution No. Resolution No. 23-094.
07/18/2023 Santa Barbara City Council Minutes Page 6 of 8

5. Subject: Resolution Denying the Appeal and Upholding the Decision of the Single Family Design Board Regarding 101 Santa Cruz Boulevard [Resolution] (640.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Denying the Appeal of Jorene Lopez and Jeffrey Yen to Reverse the Single Family Design Board’s Decision Approving a New Residence Located at 101 Santa Cruz Boulevard and Making the Findings Supporting the Action.

Documents:
- July 18, 2023, report from the Community Development Director; - Proposed Resolution.

Speakers:
- Staff: None.
- Members of the Public: No one wished to speak.

Motion:

Councilmembers Friedman/O. Gutierrez to approve the recommendation.

Vote:

Majority roll call vote (Ayes: Councilmembers Harmon, Friedman, O.

Gutierrez, A. Gutierrez, Jordan, Mayor Rowse; Noes: Councilmember Sneddon); Resolution No. 23-095.

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember Sneddon attended the following meeting or event: 1. 4th of July celebration; 2. Concert in the Park; 3. Cachuma Operation and Maintenance Board (COMB) meeting; and 4. Cachuma Conservation Release Board (CCRB) meeting.

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ATTORNEY

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

The title of the Ordinance was read.

Documents:
- July 18, 2023, report from the City Attorney;
- PowerPoint presentation prepared and made by staff;
07/18/2023 Santa Barbara City Council Minutes Page 7 of 8 - Proposed Ordinance.

Speakers:
- Staff: Assistant City Attorney John Doimas;
- Members of the Public:

Motion:

Councilmembers Friedman/O. Gutierrez to approve the recommendation.

Vote:

Majority roll call vote (Ayes: Councilmembers Harmon, Friedman, O.

Gutierrez, Sneddon, Jordan, Mayor Rowse; Noes: Councilmember A.

Gutierrez).

MAYOR AND COUNCIL REPORTS

18. Subject: Additional Advisory Group Appointments (140.05) Recommendation: That Council make additional appointments to the Santa Barbara Youth Council.

Documents:
- July 18, 2023, report from the City Administrator.

Speakers:
- Staff: Deputy City Clerk Niko Lopez.
- Members of the Public: No one wished to speak.

Nominations:
- Councilmember Sneddon: Amelia Vander May, Sagarika Manian. - Councilmember Jordan: Amelia Vander May, Sagarika Manian. - Councilmember Harmon: Amelia Vander May, Sagarika Manian. - Councilmember Friedman: Amelia Vander May, Sagarika Manian. - Councilmember O. Gutierrez: Amelia Vander May, Sagarika Manian. - Councilmember A. Gutierrez: Amelia Vander May, Sagarika Manian. - Mayor Rowse: Amelia Vander May, Sagarika Manian.

Appointments:

Applicants Amelia Vander May and Sagarika Manian were reappointed to the Santa Barbara Youth Council SBUSD High School - County Resident positions with terms expiring June 30, 2025.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
07/18/2023 Santa Barbara City Council Minutes Page 8 of 8 - Councilmember Sneddon attended the following meeting or event: 1. 4th of July celebration; 2. Concert in the Park; 3. Cachuma Operation and Maintenance Board (COMB) meeting; and 4. Cachuma Conservation Release Board (CCRB) meeting. - Mayor Rowse attended the following meeting or event: 1. Lobero Theater event; 2.

Announced benefit fund raiser organized for Brian Bosse. - Councilmember O. Gutierrez: 1. Ordinance Committee Workshop; 2. SB Coral Society; 3. Committee planning Centennial Anniversary for the Santa Barbara earthquake; 4. Forester’s game; 5. Local Homeless-related meetings with SBACT; 6.

Sister Cities event; 7. Various ribbon cutting ceremonies; 8. Birthday honoring Dalai Lama; 9. Concerts in the Park; 10. Horse show at the Show Grounds; 11. Artist Showcase at the SB County Education Office; 12. Mixer at Hispanic Chamber of Commerce; 13. Communify Board Meeting; 14. Friends of State Street; 15. MLK Celebration; 16. Your Choice Upper State Street Block Party; 17. PATH clean-up; 18.

Strong Town meeting; 19. Direct Relief tour; 20. Expressed gratitude and appreciation for his current years of service.

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT
Mayor Rowse adjourned the meeting at 3:01 p.m. in honor of Ron Liechti.

Approved and adopted by the City Council of the City of Santa Barbara on December 5, 2023.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
09/26/2023 Santa Barbara City Council Minutes Page 1 of 8

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
SEPTEMBER 26, 2023
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:00 p.m. (The Finance Committee met at 12:00 p.m. The Ordinance Committee, which ordinarily meets at 12:00 p.m., did not meet on this day.)

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Alejandra Gutierrez (2:12 p.m.) Oscar Gutierrez, Meagan Harmon, Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: None.

Staff present: City Administrator Rebecca Bjork, City Attorney Sarah Knecht, Deputy City Clerk Niko Lopez.

CHANGES TO THE AGENDA
There were no changes to the agenda.

CONSENT CALENDAR (Item Nos. 1 – 10)
The titles of the Ordinances and Resolutions were read.

Motion:

Councilmembers O. Gutierrez/Jordan to approve all Consent Calendar items as recommended.

Vote:

Unanimous roll call vote (Absent: Mayor Pro Tempore A. Gutierrez). 09/26/2023 Santa Barbara City Council Minutes Page 2 of 8

1. Subject: Amendment to Section 16.04.120, Local Limitations on Wastewater Strength of Municipal Code Title 16, Liquid and Industrial Waste Disposal [Ordinance Adoption] (540.13)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Amending Section 16.04.120 Relating to Local Limitations on Wastewater Strength.

Action: Approved the recommendation; Ordinance No. 6124 (September 26, 2023 Council Agenda Report and any attachments).

2. Subject: Resolution Denying the Appeal and Upholding the Decision of the Planning Commission Regarding 125 and 145 S. Calle Cesar Chavez and 110 and 114 S. Quarantina Street [Resolution] (640.07)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Denying the Appeal and Upholding the Decision of the Planning Commission Granting Approval of a Coastal Development Permit at 125 and 145 South Calle Cesar Chavez and 110 and 114 South Quarantina Street.

Action: Approved the recommendation; Resolution No. 23-118 (September 26, 2023 Council Agenda Report and any attachments).

3. Subject: August 2023 Investment Report (260.02)
Recommendation: That Council accept the August 2023 Investment Report.

Action: Approved the recommendation (September 26, 2023 Council Agenda Report and any attachments).

4. Subject: Fiscal Year 2024 Interim Financial Statements for the One Month Ended July 31, 2023 (250.02)
Recommendation: That Council accept the Fiscal Year 2024 Interim Financial Statements for the one month ended July 31, 2023.

Action: Approved the recommendation (September 26, 2023 Council Agenda Report and any attachments).
09/26/2023 Santa Barbara City Council Minutes Page 3 of 8

5. Subject: Fiscal Year 2023 Fourth-Quarter Review (230.05) Recommendation: That Council:

A. Receive a report from staff on the status of revenues and expenditures in relation to budget for the twelve months ended June 30, 2023; B. Accept the Fiscal Year (FY) 2023 Interim Financial Statements for the twelve months ended June 30, 2023; and
C. Approve proposed Fourth Quarter (Q4) adjustments to FY 2023 appropriations and estimated revenues as detailed in the attached schedule of Proposed Q4 adjustments.

Action: Approved the recommendations (September 26, 2023 Council Agenda Report and any attachments).

6. Subject: Annual Contract with the Santa Barbara County Office of Arts and Culture [Agreement] (150.04)
Recommendation: That Council authorize the City Administrator to execute an agreement with the Santa Barbara County Office of Arts and Culture in the amount of $451,345, of which $245,175 will be regranted, as approved in the Fiscal Year 2024 adopted budget.

Action: Approved the recommendation; Agreement No. 28,421 (September 26, 2023 Council Agenda Report and any attachments).

7. Subject: Grant Agreement with South Coast Community Media Access Center, dba TV Santa Barbara [Agreement] (170.01)
Recommendation: That Council authorize the City Administrator to execute a twoyear grant agreement with the South Coast Community Media Access Center for management of the public and educational access television channels in an amount of $297,445 plus an amount for public, educational and government access (PEG) capital expenditures equal to 50% of the actual PEG fees received by the City for Fiscal Year 2024.

Action: Approved the recommendation; Agreement No. 28,420 (September 26, 2023 Council Agenda Report and any attachments).
09/26/2023 Santa Barbara City Council Minutes Page 4 of 8

8. Subject: Construction of the Santa Barbara Airport Airfield Markings, Signage, and Lighting Upgrades Project [Agreement] (560.04) Recommendation: That Council:

A. Award a contract with Vellutini Corporation dba Royal Electric Company in their low bid amount of $5,555,555 for construction of the Santa Barbara Airport Airfield Markings, Signage, and Lighting Upgrades Project, Bid No. 4062; and authorize the Public Works Director to execute the contract and approve expenditures up to $555,555 to cover any cost increases that may result from contract change orders for extra work and differences between estimated bid quantities and actual quantities measured for payment; and B. Authorize the Public Works Director to execute a contract with Mead and Hunt, Inc. in the amount of $405,310 for construction administration support and authorize $40,531 for potential extra services.

Action: Approved the recommendations; Agreement Nos. 28,422 and 28,423 (September 26, 2023 Council Agenda Report and any attachments).

9. Subject: First Amendment to Agreement for Labor Negotiations [Agreement] (440.03)
Recommendation: That Council approve and authorize the Human Resources Director to execute an amendment to the Labor Relations agreement (Santa Barbara Agreement #22400045) with the Law Firm of Liebert Cassidy Whitmore increasing the contract amount by $23,000, for a total not to exceed $46,000.

Action: Approved the recommendation; Agreement No. 28,424 (September 26, 2023 Council Agenda Report and any attachments).

10. Subject: Approval of Final Map for 501 Ninos Drive, Dwight Murphy Field (640.08)
Recommendation: That Council approve and authorize the Parks and Recreation Director and City Administrator to execute and record Final Map Number 20,838, relating to the approved lot merger and vacation of unused streets and related actions at 501 Ninos Drive, Dwight Murphy Field.

Action: Approved the recommendation; Agreement No. 28,425 (September 26, 2023 Council Agenda Report and any attachments).
09/26/2023 Santa Barbara City Council Minutes Page 5 of 8

REPORT FROM THE FINANCE COMMITTEE
Finance Committee Chair Friedman reported that Finance Committee heard the fourth quarter financials for Fiscal Year 2023 and approved recommended adjustments to the previous fiscal year.

PUBLIC COMMENT
Members of the Public: Stanley Tsankov; Carmen Angulano; James Henry; Steven Ley Amber Asher; Max Golding; Lauren Russ; Makayla; Tara Zanecki.

PULLED CONSENT ITEMS
No items were pulled from consent.

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember Friedman reported on their attendance at the following events or made the following comments: 1. League of Cities annual conference. - Councilmember O. Gutierrez reported on their attendance at the following events or made the following comments: 1. League of Cities annual conference; 2. Santa Barbara Youth Council.
- Councilmember Sneddon reported on their attendance at the following events or made the following comments: 1. Water Commission meeting; 2. COMB meeting.

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

COMMUNITY DEVELOPMENT DEPARTMENT

PUBLIC HEARINGS

11. Subject: Development Agreement for 400 W. Carrillo Street Residential Building [Ordinance Introduction; Agreement] (640.1)
Recommendation: That Council:

A. Make the findings that the project meets the requirements for a statutory exemption pursuant to California Environmental Quality Act Statute Section 21155.1 [Implementation of the Sustainable Communities Strategy]; and B. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Development Agreement for a 63-Unit Residential Building at 400 W. Carrillo Street by and Between the City of Santa Barbara and the Housing Authority of the City of Santa Barbara.
09/26/2023 Santa Barbara City Council Minutes Page 6 of 8 The title of the Ordinance was read.

Public Hearing Opened: 2:39 p.m.

Documents:
- September 26, 2023 Council Agenda Report and any attachments. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: Project Planner Megan Arciniega.
- Housing Authority: Director of Real Estate and Technology, Dale FatheAazam; Christine Peron. - Members of the Public: Daquiri Beebe, Linda Honikman.

Discussion:
- Councilmembers’ questions were answered.

Public Hearing Closed: 3:20 p.m.

Motion:

Councilmembers Harmon/Sneddon to approve the staff recommendations.

Vote:

Unanimous roll call vote; Agreement No. 28,425.

PUBLIC WORKS DEPARTMENT

12. Subject: Continuing the State Street Promenade Pilot Program, Adding Title 31 to the Santa Barbara Municipal Code, and Update on State Street Interim Operations [Ordinance Introduction] (530.04)
Recommendation: That Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Adding Title 31 Relating to the State Street Promenade; and
B. Receive an update on State Street Interim Operations.

The title of the Ordinance was read.

Public hearing opened: 3:36 p.m.

Documents:
- September 26, 2023 Council Agenda Report and any attachments. - PowerPoint presentation prepared and made by staff.
09/26/2023 Santa Barbara City Council Minutes Page 7 of 8 Speakers:
- Staff: Assistant City Attorney Dan Hentschke; Public Works Manager Brian Bosse; Downtown Plaza Parking Manager Sarah Clark; Principal Traffic Engineer Derrick Bailey; State Street Master Planner Tess Harris; Police Chief Kelly Gordon
- Metropolitan Transit District: General Manager Jerry Estrada - Members of the Public: Michael Schaumburg; Gretchen Murray; Martin Hladyniuk; Alice Post; David Wienert; Eileen Piatek; Leslie Colasse; Collette Cosentino; Jim Knell; Brendan Searls; Joan Rutkowski; Caren Rager; Kathryn Martin; Daniel Ramirez; Cass Ensberg; Jim Youngson; Tristan Miller; Richard Yates; Lynne Tahmisian; Bonnie Donovan; Gloria Navaroo-Easter; Richard Llyod; Bertrand Rand; Barry Remis; Lee Heller, Nick Cauits; Joanna Kaufman; Anna Marie Gott; Doug Ford; Tammy Hughes; Sullivan Israel; Kira Pusch; Alex Gravenor; Luca D’Agruma; Loy Beardsmore.

Discussion:
- Councilmembers’ questions were answered.

Public Hearing Closed: 6:36 p.m.

Motion:

Councilmembers Friedman/Harmon to adopt a hybrid approach to the promenade reducing it to just the 500 and 600 blocks of State Street and to amend the ordinance appropriately.

Vote:

Motion fails (Yes: Councilmembers Friedman, A. Gutierrez, Mayor Rowse; No: Councilmembers Harmon, O. Gutierrez, Sneddon, Jordan.) Motion:

Councilmembers Sneddon/Harmon to introduce, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Adding Title 31 Relating to the State Street Promenade; and including the addition of the words “and on the 400 block of State Street in Section 3130.040(c) and with the additional technical correction to section 3130.010 (a)(3) referenced in the staff presentation and also with the change to title 22 Chapter 11b to read ‘title 24 Chapter 11b’ and to be sure that any changes to vehicle patterns or uses come to Council for approval.”
Vote:

Majority roll call vote (Noes: Councilmembers Friedman, Rowse) 09/26/2023 Santa Barbara City Council Minutes Page 8 of 8 Motion:

Councilmembers Sneddon/O. Gutierrez to approve the Granada drop off and pick up zone by opening the 1200 block of State Street to one way traffic north.

Vote:

Unanimous roll call vote.

Motion:

Councilmembers Sneddon/O. Gutierrez with relation to cleaning option, to try the least expensive first and then return to discuss other options at later meetings if deemed necessary; explore microshuttle options as described in slide 21 A with mini micro transit using one lane and consult with MTD regarding a waterfront/circulator shuttle.

Vote:

Majority roll call vote (Noes: Councilmembers Friedman/Sneddon).

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember Friedman reported on their attendance at the following events or made the following comments: 1. Wished his wife a happy 20th anniversary.

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT
Mayor Rowse adjourned the meeting at 8:51 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on December 5, 2023.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
10/03/2023 Santa Barbara City Council Minutes Page 1 of 6

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
OCTOBER 3, 2023
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:01 p.m. (The Finance Committee and Ordinance Committee, which normally meet at 12:00 p.m., did not meet on this day)

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Alejandra Gutierrez, Oscar Gutierrez, Meagan Harmon, Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: Councilmember Friedman.

Staff present: City Administrator Rebecca Bjork, City Attorney Sarah Knecht, City Clerk Services Manager Sarah Gorman.

CEREMONIAL ITEMS

1. Subject: Employee Recognition – Service Award Pins
Recommendation: That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through October 31, 2023.

2. Subject: Breast Cancer Awareness Month October 2023 (120.04) Action: Proclamation presented by Mayor Rowse and received by Sadie Carr and Chief Gordon of the Santa Barbara Police Department, and Silvana Kelly of Breast Cancer Resource Center.

CHANGES TO THE AGENDA
There were no changes to the agenda.
10/03/2023 Santa Barbara City Council Minutes Page 2 of 6 CONSENT CALENDAR (Item Nos. 3, 5-6, 8)
The titles of the Ordinances and Resolutions were read.

Motion:

Councilmembers Jordan/Harmon to approve all Consent Calendar items as recommended, except for items 4 and 7.

Vote:

Unanimous roll call vote (Absent: Councilmember Friedman).

3. Subject: Minutes
Recommendation: That Council waive reading and approve the minutes of the special meetings of August 29, 2023; September 12, 2023; and the regular meetings of August 29, 2023; September 12, 2023.

Action: Approved the recommendation (October 3, 2023 Council Agenda Report and any attachments).

5. Subject: Development Agreement for 400 W. Carrillo Street Residential Building [Ordinance Adoption] (640.1)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Development Agreement for a 63-Unit Residential Building at 400 W. Carrillo Street by and Between the City of Santa Barbara and Housing Authority of the City of Santa Barbara.

Action: Approved the recommendation; Ordinance No. 6126 (October 3, 2023 Council Agenda Report and any attachments).

6. Subject: Third Increase and Time Extension for Aviation Planning Services Contract for the Fixed Based Operator Redevelopment Project [Resolution; Agreement] (560.01)
Recommendation: That Council:

A. Authorize the Airport Director to execute a third amendment to Contract No. 26,343 with Jacobs Engineering Group Inc., to increase the contract by $52,000 and to extend the term of the contract to June 30, 2024 to continue professional support for aviation planning services for the Fixed Based Operator Redevelopment Project; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 22-059, Adopting the Budget for Fiscal Year 2024, to Appropriate Funds for an Increase in Aviation Planning 10/03/2023 Santa Barbara City Council Minutes Page 3 of 6 Services for the Fixed Based Operator Redevelopment Project in the Amount of $52,000.

Action: Approved the recommendation; Resolution No. 23,119; Agreement No. 26,343.3 (October 3, 2023 Council Agenda Report and any attachments).

8. Subject: Professional Services Agreement with HDR Engineering, Inc., for Multi-Year Water and Wastewater Rate Studies [Agreement] (540.11) Recommendation: That Council authorize the Public Works Director to execute a City Professional Services Agreement with HDR Engineering, Inc., in the amount of $165,595 for comprehensive Water and Wastewater Rate Studies and authorize the Public Works Director to approve expenditures of up to $16,560 for extra services that may result from necessary changes in the scope of work for a total contract amount not to exceed $182,155.

Action: Approved the recommendation; Agreement No. 28,428 (October 3, 2023 Council Agenda Report and any attachments).

PUBLIC COMMENT
Members of the public: Steve Price; Dean Noble; Adelaida Ortega; Rick Hansen; Steven Ley; Stanley Tzankov; Dein Sofley; Amber Asher; Wendy Santamaria; Frank Rodriguez; Darryl Scheck; Ryan Collom; Brad Klein; Zac Smith; Max Golding; Steven St. Onge; Aron Ashland.

PULLED CONSENT ITEMS

4. Subject: Continuing the State Street Promenade Pilot Program, Adding Title 31 to the Santa Barbara Municipal Code, and Update on State Street Interim Operations [Ordinance Adoption] (530.04)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Adding Title 31 Relating to the State Street Promenade.

Documents:
- Ordinance as introduced on September 26, 2023.

Motion:

Councilmembers Jordan/Sneddon to approve the recommended action.

Vote:

Majority roll call vote (Noes: Mayor Rowse; Absent: Councilmember Friedman); Ordinance No. 6125.
10/03/2023 Santa Barbara City Council Minutes Page 4 of 6

7. Subject: Appropriate Funds and Authorize a Professional Services Agreement for a Report to Determine Property Financial Assessments for the Creation of a Utilities Undergrounding Assessment District for the 800 Block of Jimeno Road [Resolution; Agreement] (530.07)
Recommendation: That Council:

A. Authorize the Public Works Director to execute a professional services agreement with Harris & Associates, Inc., in the amount of $52,210 to prepare an Assessment Engineer’s Report; and
B. 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 Appropriate Funds for the 800 Block of Jimeno Road Underground Utilities Assessment Engineer’s Report.

Documents:
- October 3, 2023, report from the Public Works Director. - Proposed Resolution.

Speakers:
- Staff: Assistant City Attorney Dan Hentschke.
- Members of the public: Stan Tsunoda.

Motion:

Councilmembers Sneddon/ Harmon to approve the recommended action.

Vote:

Unanimous roll call vote (Absent: Councilmember Friedman); Resolution No. 23-120; Agreement No. 28,427.

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember O. Gutierrez reported on their attendance at the following events or made the following comments: 1. Santa Barbara Youth Council meeting; 2. Fire and Police Commission meeting; 3. Planning Commission 100 year anniversary celebration.
10/03/2023 Santa Barbara City Council Minutes Page 5 of 6

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

PUBLIC WORKS DEPARTMENT

9. Subject: Annual Capital Improvement Program Project Status Report (230.01)
Recommendation: That Council receive this status report regarding recently completed Capital Improvement Program projects, as well as projects currently in design or construction.

Documents:
- October 3, 2023, report from the Public Works Director. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: City Engineer Brian D’Amour; Public Works Director Cliff Maurer; Parks and Recreation Director Jill Zachary.
- Members of the Public: None.

Discussion:
- Councilmembers’ questions were answered.

COMMUNITY DEVELOPMENT DEPARTMENT

10. Subject: Application Process for Permitting Outdoor Dining on Private Property [Resolution] (530.04)
Recommendation: That Council:

A. Receive an informational report on the application process for permitting outdoor dining on private property; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara to Amend the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges to Add a New Permit Fee for a Coastal Development Permit for Outdoor Dining on Private Property by Inserting a Replacement Page into Resolution No. 23-078 Adopted on June 13, 2023, which Became Effective on July 1, 2023, or as Provided Therein.

The title of the Resolution was read.

Documents:
- October 3, 2023, report from the Community Development Director. - Proposed Resolution.
- PowerPoint presentation prepared and made by staff.
10/03/2023 Santa Barbara City Council Minutes Page 6 of 6 Speakers:
- Staff: State Street Master Planner Tess Harris; Building Official Tina Dye; Planning Manager Allison DeBusk; Police Chief Kelly Gordon; Assistant City Attorney Dan Hentschke.
- Members of the Public: Sherry Villanueva; Robin Elander.

Discussion:
- Councilmembers’ questions were answered.

Moton:

Councilmembers Jordan/Sneddon to approve recommended action.

Vote:

Unanimous roll call vote (Absent: Councilmember Friedman); Resolution No. 23-121.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember O. Gutierrez reported on their attendance at the following events or made the following comments: 1. Pay respects to Stan Hatch family.

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT
Mayor Rowse adjourned the meeting at 5:31 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on December 5, 2023.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
10/10/2023 Santa Barbara City Council Minutes Page 1 of 5

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
OCTOBER 10, 2023
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:00 p.m. (The Finance Committee and Ordinance Committee, which ordinarily meet at 12:00 p.m., did not meet on this day.)

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Alejandra Gutierrez (2:02 p.m.), Oscar Gutierrez, Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: Meagan Harmon.

Staff present: City Administrator Rebecca Bjork, City Attorney Sarah Knecht, City Clerk Services Manager Sarah Gorman.

CEREMONIAL ITEMS

1. Subject: Fire Prevention Week (120.04)
Action: Mayor Rowse presented the Proclamation to Fire Marshal Ryan DiGiulio, Fire Public Education Coordinator Liliana Encinas.

CHANGES TO THE AGENDA
There were no changes to the agenda.

CONSENT CALENDAR (Item Nos. 2-6)
The titles of the Resolutions were read.
10/10/2023 Santa Barbara City Council Minutes Page 2 of 5 Motion:

Councilmembers Friedman/A. Gutierrez to approve the consent calendar as recommended.

Vote:

Unanimous roll call vote (Absent: Councilmember Harmon).

2. Subject: Library Department Acceptance of Stay & Play Donation [Resolution] (570.04)
Recommendation: That Council:

A. Accept a donation in the amount of $6,000 from the Packard Foundation to cover Stay & Play program expenses; and
B. 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 Accept a Donation in the Amount of $6,000 Funded by the Packard Foundation.

Action: Approved the recommendations; Resolution No. 23-122 (October 10, 2023, report from the Library Director; proposed Resolution).

3. Subject: Library Department Acceptance of Adult & Family Literacy Grant [Resolution] (570.04)
Recommendation: That Council:

A. Accept a grant in the amount of $56,218 from the California State Library for adult and family literacy services; and
B. 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 Accept a Grant in the Amount of $56,218 Funded by the California State Library.

Action: Approved the recommendations; Resolution No. 23-123 (October 10, 2023, report from the Library Director; proposed Resolution).

4. Subject: Reserve Policy Adoption [Resolution] (210.01) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Establishing Policies for Reserves for the City’s General Fund, Enterprise Funds and Internal Service Funds, and Amending Resolution No. 22-126.
10/10/2023 Santa Barbara City Council Minutes Page 3 of 5 Action: Approved the recommendations; Resolution No. 23-124 (October 10, 2023, report from the Finance Director; proposed Resolution).

5. Subject: Proposed Amendment to Direct the City Clerk to Correct Clerical Errors with the 2024 Fiscal Year Parks and Recreation Department Schedule of Fees and Changes by Inserting Replacement Pages into Resolution No. 23-078 [Resolution] (230.05)
Recommendation: That Council:

A. Approve proposed changes to the Fiscal Year 2024 Parks and Recreation Department Schedule of Fees and Charges to correct a clerical error; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing the City Clerk to Correct Clerical Errors by Inserting Replacement Pages into Resolution No. 23-078 Adopted on June 13, 2023, which Became Effective on July 1, 2023, or as Provided Therein, and Amend the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges.

Action: Approved the recommendations; Resolution No. 23-125 (October 10, 2023, report from the Parks and Recreation Director; proposed Resolution).

6. Subject: Set a Date for a Public Hearing Regarding Planning Commission's Approval for 710-720 State and 15 East Ortega Streets (640.07) Recommendation: That Council:

A. Set the date of January 23, 2024, at 2:00 p.m. for hearing the appeals filed by Steve Johnson and Gareth Kelly of the Planning Commission’s approval of the Development Plan at 710-720 State and 15 East Ortega Streets (APN: 037-092-013, 019, 020, 021, 034 and 014) Zoned C-G (Commercial General); and
B. Set the date of January 22, 2024, at 1:30 p.m. for a site visit to the property located at 710-720 State and 15 East Ortega Streets.

Action: Approved the recommendations.

PUBLIC COMMENT
Members of the Public: Wendy Santamaria; Amber Asher; Max Golding.

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
10/10/2023 Santa Barbara City Council Minutes Page 4 of 5

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

COMMUNITY DEVELOPMENT DEPARTMENT

7. Subject: Fiscal Year 2025 Community Development Block Grant Funding Process, Priorities, and Criteria (610.05)
Recommendation: That Council:

A. Approve the Community Development Block Grant (CDBG) proposed application-review process and provide direction to the Community Development and Human Services Committee (CDHSC) on funding CDBG criteria and priorities; and
B. Authorize staff to solicit proposals for CDBG grants for Fiscal Year 2025.

Documents:
- October 10, 2023, report from the Community Development Director. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: Housing and Human Services Manager Laura Dubbels; Senior Community Development Programs Specialist Lindsey Drewes - Members of the Public: None.

Discussion:
- Councilmembers’ questions were answered.

Motion:

Councilmembers A Gutierrez/Friedman to approve the recommended actions.

Vote:

Unanimous roll call vote. (Absent: Councilmember Harmon).

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember A. Gutierrez attended the following meeting or event: 1. Pride and Joy LGBTQ+ community event.
- Councilmember O. Gutierrez attended the following meeting or event: 1. Senior Expo;

2. Harding Resource Center project meeting; 3. Santa Barbara Historical Museum missions exhibit; 4. Westmont “what are churches for” discussion; 5. Elected Leaders Forum to Address Homelessness; 6. Met with Japanese Consulate in Los Angeles; 7.

Community Leaders’ Briefing at Planned Parenthood; 8. AIA walking tour; 9. Bread 10/10/2023 Santa Barbara City Council Minutes Page 5 of 5 and roses Fundraiser; 10. Indigenous Peoples’ Day recognition; 11. NAC meeting cancelled due to lack of quorum.
- Councilmember Sneddon attended the following meeting or event: 1. Arts and Lectures series with Martha Graham; 2. Rescue Mission fundraiser. - Mayor Rowse attended the following meeting or event: 1. Visited one of the smaller cruise ships and received briefing on environmental precautions.

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT
Mayor Rowse adjourned the meeting at 2:55 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on December 5, 2023.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
1 ORDINANCE NO. __________

AN ORDINANCE OF THE COUNCIL OF THE CITY

OF SANTA BARBARA AMENDING SANTA
BARBARA MUNICIPAL CODE SECTIONS 30.20.030,

30.25.030, 30.30.30, 30.140.220, 30.150.010,

30.150.040, AND 30.150.050 TO ELIMINATE THE
EXPIRATION DATE FROM THE AVERAGE UNITSIZE DENSITY INCENTIVE PROGRAM

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

SECTION 1. Section 30.20.030 of Chapter 30.20 of Title 30 of the Santa Barbara Municipal Code is amended to read as follows:

30.20.030 Development Standards.

Tables 30.20.030A and 30.20.030B prescribe the development standards for Residential Zones. Section numbers refer to other sections of this title, while individual letters refer to subsections that directly follow the tables. Additional regulations that apply throughout the City are located in Division III, Citywide Regulations.

TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.
unless noted)
See also Chapter 27.60, Parcel Maps for Urban Lot
Splits
Average Slope less than 10%,
and all lots with frontage on
the Pacific Ocean regardless
of slope
1 acre 25,000 15,000 10,000 7,500 6,000
Average Slope 10% to 20% 1.5
acre
37,500 22,500 15,000 11,250 9,000
Average Slope over 20% to
30% 2 acres 50,000 30,000 20,000 15,000 12,000
Average Slope over 30% 3 acres 75,000 45,000 30,000 22,500 18,000 100 100 90 75 60 60 Minimum Public Street
Frontage (ft.) See also §30.140.180, Street Frontage and Access; and §30.140.120, Location of Lot Lines
Maximum Base Residential Density
Agenda Item No. 3
File Code No. 610.04
2 TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
Maximum Density (per lot) 1 unit 1 unit 1 unit 1 unit 1 unit 1 unit Additional Residential Density Allowances
All lots, in compliance with the
applicable section
See §30.185.050, Additional Residential Unit
See §30.185.040, Accessory Dwelling Units
See Chapter 30.145, Affordable Housing and Density
Bonus and Development Incentives
Maximum Floor Area
Maximum Floor Area
(Floor to Lot Area Ratio) (sq.
ft.)
Applicable only to lots developed, or proposed to be
developed, with a building with two or more stories or
17 feet or more in height.

Less than 4,000 sq. ft. Net Lot
Area
2,200. See also A, Maximum Floor Area (Floor to Lot
Area Ratio)
4,000 to 9,999 sq. ft. Net Lot
Area
1,200 + (0.25 multiplied by the net lot area) = Maximum Floor Area. See also (A), Maximum Floor Area (Floor to
Lot Area Ratio)
10,000 to 14,999 sq. ft. Net
Lot Area
2,500 + (0.125 multiplied by the net lot area) =
Maximum Floor Area. See also A, Maximum Floor Area
(Floor to Lot Area Ratio)
15,000 and more sq. ft. Net
Lot Area Not Applicable
Structure Form and Location
Minimum Residential Unit Size
Studio: 220 square feet;
All other units: 400 square feet
See §30.140.150, Residential Unit
Maximum Height (ft.) 30, except as further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.),
Residential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
Front 35 30 30 25 20
Portions of
structures 15
feet or less in
height: 15;
Portions of
structures
more than 15
3 TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
feet in height:
20;
Street facing
covered
parking: 20
See also B, Setback Reduction for Sloping Lots
Interior 15 10 10 8 6 5
Minimum Setbacks (ft.),
Nonresidential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
Front Same as for Residential Structures
Interior (Conversion and
Alterations)
Conversions of existing residential structures to
nonresidential structures, or alterations of existing
structures that contain nonresidential uses, are subject to the setback requirements for residential structures. 30 20 20 12 12 10
Interior (New or Additions) Exception: Community Gardens are subject to the setback requirements for residential structures.

Minimum Setbacks, MixedUse
Portions of structures that contain residential uses are subject to the setback for residential structures, and
portions of structures used for nonresidential uses are subject to the setback requirement for nonresidential
structures.

Portions of structures used by both the residential and nonresidential uses are subject to the setback
requirement for nonresidential structures.

Minimum Setbacks,
Uncovered Parking
See §30.175.060, Location of Required Automobile and
Bicycle Parking
Materials
Roofing and siding materials shall be nonreflective.

Shiny, mirror like, or glossy metallic finishes are
prohibited.

Open Yard
Open Yards See §30.140.140, Open Yards
TABLE 30.20.030.B: DEVELOPMENT STANDARDS–TWO-UNIT AND MULTI-UNIT ZONES
Zone R-2 R-M R-MH
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.)
Average Slope less than 10% 7,000 14,000 14,000
4 TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
Average Slope 10% to 20% 10,500
Average Slope over 20% to
30% 14,000
Average Slope over 30% 21,000
60 60 60 Minimum Public Street
Frontage (ft.) See §30.140.180, Street Frontage and Access; and §30.140.120, Location of Lot Lines
Maximum Base Residential Density
Less than 5,000 sq. ft. Net Lot
Area 1 unit 1 unit
5,000 to 5,999 sq. ft. Net Lot
Area 1 unit 2 units
6,000 to 6,999 sq. ft. Net Lot
Area
2 units if
average slope
less than
10%, 1 unit
otherwise
2 units
7,000 and more sq. ft. Net Lot
Area
Average Slope less than 10%
1 unit/3,500 sq.
ft. of net lot
area
Average Slope 10% to 20%
1 unit/5,250 sq.
ft. of net lot
area
Average Slope over 20% to
30%
1 unit/7,000 sq.
ft. of net lot
area
Average Slope over 30%
1 unit/10,500
sq. ft. of net lot
area
3 units, or 1 unit/3,500 sq. ft. of net lot
area, whichever is greater
Additional Residential Density Allowances
All lots, in compliance with the
applicable section
See §30.185.040, Accessory Dwelling Units
See Chapter 30.150, Average Unit-Size Density
Incentive Program
See Chapter 30.145, Affordable Housing and Density
Bonus and Development Incentives
Structure Form and Location
Minimum Residential Unit
Size See §30.140.150, Residential Unit
5 TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
30 45 45
Maximum Height (ft.) Except as further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.),
Residential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
See Chapter 30.150, Average Unit-Size Density
Incentive Program
1st and 2nd Stories: 10
Portions of structures above 2nd story:
20 Front
Portions of
structures 15
feet or less in
height: 15;
Portions of
structures more
than 15 feet in
height: 20;
Street facing
covered
parking: 20
See also (B),
Setback
Reduction for
Sloping Lots
Covered parking: 10
Covered parking, street-facing: 20
1st and 2nd Stories: 6
Portions of structures above 2nd story:
10 Interior
Covered
parking: 3
Other
structures: 6
Covered parking:
● Single-Unit Residential and Two-Unit
Residential: 3
● Multi-Unit Residential: 6 except as
provided in C, Interior Setback
Reduction for Covered Parking on Lots
55 Feet or Less and D, Interior Setback
for Covered Parking Opposite the
Primary Front Lot Line
Minimum Setbacks (ft.),
Nonresidential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
6 TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
Front Same as for Residential Structures
Interior (Conversions and
Alterations)
Conversions of existing residential structures to
nonresidential structures, or alterations of existing
structures that contain nonresidential uses, are subject to the setback requirements for residential structures.

Interior (New or Additions) 12
New nonresidential structures or
additions to existing nonresidential
structures are subject to the following
interior setback:
● 1st and 2nd Stories: 12
● Portions of structures above
2 nd story: 20
● Exception: Neighborhood Markets
and Community Gardens are subject to
the setback requirements for residential
structures.

Portions of structures used by both the residential and nonresidential uses are subject to the setback
requirement for nonresidential structures.

Minimum Setbacks,
Uncovered Parking
See §30.175.060, Location of Required Automobile and
Bicycle Parking
Open Yard
Open Yards
See §30.140.140, Open Yards
See Chapter 30.150, Average Unit-Size Density
Incentive Program
Additional Residential Zone Development Regulations
A. Maximum Floor Area (Floor to Lot Area Ratio).

1. Floor Area, Precluded Development-RS Zones. No application for a Building Permit may be approved for a project in an RS Zone that will: (1) result in an increase of the floor area on the lot; (2) change the location of any floor area on the 7 second or higher story of any structure on the lot; or (3) increase the height of any portion of a structure on the lot to 17 feet or higher if any of the following will occur:
a. The floor area will exceed the allowable maximum floor area for the lot; or
b. The floor area will exceed 85% of the allowable maximum floor area and any of the following apply:
i. The average slope of the lot or the building site is 30% or greater,
ii. The height of any structure on the lot is more than 25 feet, or
iii. The lot is located in the Hillside Design District and 500 or more cubic yards of grading is proposed to occur outside the footprint of the main or accessory buildings. Soil located within five feet of an exterior wall of a main or accessory building that is excavated and re compacted shall not be included in the calculation of the volume of grading outside the building footprint.

2. Measuring Floor Area Pursuant to this Section. In determining floor area pursuant to this section see Section 30.15.070, Measuring Floor Area, and the following:
a. Below Grade Excluded. On any floor which is partly below and partly above grade, such as a basement, cellar, or understory, the total floor area of that floor may be excluded from the floor to lot area ratio (FAR) if no more than a cumulative total width of 12 feet per elevation has a distance from finished grade to ceiling greater than four feet.
b. Partially Below Grade Reduced. On any floor which is partly below and partly above grade, such as a basement, cellar or understory, the total floor area of that floor may be reduced by 50% from the floor to lot area ratio (FAR) if more than 12 feet, but less than one half the entire length of the perimeter has a distance from grade to ceiling greater than four feet.
c. All Other Floor Area Included. If more than one half the entire length of the perimeter of any floor has a distance from grade to ceiling greater than four feet, it is included in the floor to lot area ratio (FAR). d. Accessory Dwelling Unit and Junior Accessory Dwelling Unit Included. Floor area within a portion of a structure designed and permitted as an accessory dwelling unit or junior accessory dwelling unit is included. 8 FIGURE 30.20.030.A.2: MEASURING FLOOR AREA
B. Setback Reduction for Sloping Lots.

1. Residential Single Unit Zones. In Residential Single Unit zones, where the average natural slope of the area within 50 feet of the front lot line is more than 20%, the required front setback for all stories is reduced by five feet.

2. R-2 Zone. In the R-2 Zone, where the average natural slope of the area within 50 feet of the front lot line is more than 20%, the required front setback for all stories is reduced to 10 feet.

C. Interior Setback Reduction for Covered Parking on Lots 55 Feet or Less.

The required interior setback for covered parking on lots in the R-M or R-MH zone less than 55 feet in width, measured at the location of the covered parking structure, and developed with multi-unit residential may be reduced to three feet by the appropriate Design Review body provided the covered parking opening does not face a street or alley and the interior depth of the covered parking structure does not exceed 20 feet.

D. Interior Setback Reduction for Covered Parking Opposite the Primary Front Lot Line. The required interior setback for covered parking on lots in the R-M or RMH zone developed with multi-unit residential may be reduced to three feet on the lot line opposite the primary front lot line. In the event of two or more front lot lines, the setback of only one opposite lot line may be reduced to three feet.

FIGURE 30.20.030.C AND D: INTERIOR SETBACK REDUCTION FOR COVERED

PARKING
9 SECTION 2. Section 30.25.030 of Chapter 30.25 of Title 30 of the Santa Barbara Municipal Code is amended to read as follows:

30.25.03 Development Standards.

Table 30.25.030 prescribes the development standards for Commercial and Office Zones. Section numbers refer to other sections of this Title, while individual letters refer to subsections that directly follow the table. Additional regulations that apply throughout the City are located in Division III, Citywide Regulations.

TABLE 30.25.030: DEVELOPMENT STANDARDS–COMMERCIAL AND OFFICE ZONES
Zone O-R O-M C-R C-G
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.)
None; except 3,500 sq. ft. of net lot area is required for lots that include residential uses
Minimum Public Street
Frontage (ft.)
None, See §30.140.180, Street Frontage and Access; and
§30.140.120, Location of Lot Lines
Maximum Base Residential Density
Less than 5,000 sq. ft. Net
Lot Area 1 unit
10 TABLE 30.25.030: DEVELOPMENT STANDARDS–COMMERCIAL AND OFFICE ZONES
Zone O-R O-M C-R C-G
5,000 to 6,999 sq. ft. Net
Lot Area 2 units
7,000 and more sq. ft. Net
Lot Area
3 units, or 1 unit/3,500 sq. ft. of net lot area, whichever is greater
Additional Residential Density Allowances
All lots, in compliance with
the applicable section
See §30.185.040, Accessory Dwelling Units
See Chapter 30.150, Average Unit-Size Density Incentive Program
See Chapter 30.145, Affordable Housing and Density
Bonus and Development Incentives
Structure Form and Location
Minimum Residential Unit
Size
Studio: 220 square feet;
All other units: 400 square feet
See §30.140.150, Residential Unit
Maximum Height (ft.) 45 45 45
45;
60 for Community
Benefit Project or
Community Benefit
Housing Project
(§30.140.100.B)
See also A,
Theater Additions
Additional Height
Limitations Adjacent to all
Residential Zones
Height is further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.)
See also §30.140.090, Encroachments into Setbacks and
Open Yards
See Chapter 30.150, Average Unit-Size Density Incentive Program
Front
Residential only development: Same
as R-M Zone
Nonresidential and mixed-use
development:

Residential only
development:

Same as R-M Zone
11 TABLE 30.25.030: DEVELOPMENT STANDARDS–COMMERCIAL AND OFFICE ZONES
Zone O-R O-M C-R C-G
● 1st and 2nd Stories: 10
● Portions of structure above
2 nd story: 20
Nonresidential and
mixed-use
development: 0
Interior, Adjacent to a
Nonresidential Zone
Residential only
development: Same as
R-M Zone
Nonresidential and
mixed-use development:
● 1st and 2nd Stories: 6
● Portions of structure
above 2nd story: 10
Residential only
development: Same as R-M
Zone
Nonresidential and mixed-use
development: 0
Interior, Adjacent to a
Residential Zone
Residential structures, and the residential portion of any mixed-use development: Same as R-M Zone
Nonresidential structures, and the nonresidential portion of any structure in a mixed-use development, 30 feet or less in height: 15
Nonresidential structures, and the nonresidential portion of any structure in a mixed-use development, more than
30 feet in height: 20
Portions of structures used by both the residential and nonresidential uses are subject to the setback
requirement for nonresidential structures.

Uncovered Parking See §30.175.060, Location of Required Automobile and Bicycle Parking
Open Yard
Open Yards
Any lot developed with residential uses shall provide open yard pursuant to §30.140.140, Open Yards.

See Chapter 30.150, Average Unit-Size Density Incentive Program
Additional Commercial and Office Zone Development Regulations A. Theater Additions. A stage addition to a live performance theater shall not be considered as part of the height of the structure under the following circumstances:
12 1. The stage addition is devoted solely to rigging fly systems,

2. The addition is made to a theater that existed as of December 31, 2003, and

3. The stage addition does not exceed the height of the theater as such theater existed on December 31, 2003.

SECTION 3. Section 30.30.030 of Chapter 30.30 of Title 30 of the Santa Barbara Municipal Code is amended to read as follows:

30.30.030 Development Standards.

Table 30.30.030 prescribes the development standards for Manufacturing Zones.

Section numbers refer to other sections of this Title. Additional regulations that apply throughout the City are located in Division III, Citywide Regulations.

TABLE 30.30.030: DEVELOPMENT STANDARDS–MANUFACTURING ZONES Zone M-C M-I
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.)
None; except 3,500 sq. ft. of net lot area is required for lots that include residential uses
Minimum Public Street
Frontage (ft.)
None, See §30.140.180, Street Frontage and Access;
and §30.140.120, Location of Lot Lines
Maximum Base Residential Density
Less than 5,000 sq. ft. Net Lot
Area 1 unit
5,000 to 6,999 sq. ft. Net Lot
Area 2 units
7,000 and more sq. ft. Net Lot
Area
3 units, or 1 unit/3,500 sq. ft. of
net lot area, whichever is
greater
One Caretaker Unit
See §30.185.120,
Caretaker Unit
Additional Residential Density Allowances
All lots, in compliance with the
applicable section
See §30.185.040, Accessory
Dwelling Units
See Chapter 30.150, Average
Unit-Size Density Incentive
Program
See Chapter 30.145, Affordable
Housing and Density Bonus
and Development Incentives
None applicable
Structure Form and Location
Minimum Residential Unit
Size
Studio: 220 square feet;
13 TABLE 30.30.030: DEVELOPMENT STANDARDS–MANUFACTURING ZONES Zone M-C M-I
All other units: 400 square feet
See §30.140.150, Residential Unit
Maximum Height (ft.)
45;
60 for Community Benefit Project or Community Benefit
Housing Project (§30.140.100.B)
Additional Height Limitations
Adjacent to all Residential
Zones
Height is further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.)
See also §30.140.090, Encroachments into Setbacks
and Open Yards
See Chapter 30.150, Average Unit-Size Density
Incentive Program
Front
Residential only structures: Same as R-M Zone
Nonresidential and mixed-use development: 0
Interior, Adjacent to a
Nonresidential Zone
Residential only structures: Same as R-M Zone
Nonresidential and mixed-use development: 0
Interior, Adjacent to a
Residential Zone
Residential structures and the residential portion of any mixed-use development: Same as R-M Zone
Nonresidential, and the nonresidential portion of any
structure in a mixed-use development, 30 feet in height or less: 15
Nonresidential structures, and the nonresidential portion of any structure in a mixed-use development, more than
30 feet in height: 20
Portions of structures used by both the residential and nonresidential uses are subject to the setback
requirement for nonresidential structures.

Uncovered Parking See §30.175.060, Location of Required Automobile and Bicycle Parking
Open Yard
Open Yards
Any lot developed with residential use shall provide
open yard pursuant to §30.140.140, Open Yards.

See Chapter 30.150, Average Unit-Size Density
Incentive Program
14 SECTION 4. Section 30.140.220 of Chapter 30.140 of Title 30 of the Santa Barbara Municipal Code is deleted in its entirety.

SECTION 5. Section 30.150.010 of Chapter 30.150 of Title 30 of the Santa Barbara Municipal Code is amended to read as follows:

30.150.010 Purpose.

The Average Unit-Size Density Incentive Program carries out a key program directed by the 2011 General Plan. The Program facilitates the construction of smaller housing units by allowing increased density and development standard incentives in selected areas of the City. Housing types that provide housing opportunities to the City’s workforce are encouraged and facilitated by the program.

SECTION 6. Section 30.150.040 of Chapter 30.150 of Title 30 of the Santa Barbara Municipal Code is deleted in its entirety as follows:

SECTION 7. Section 30.150.050 of Chapter 30.150 of Title 30 of the Santa Barbara Municipal Code is amended to read as follows:

30.150.050 Status of R-M and R-MH Residential Density.

Notwithstanding the provisions of Chapter 30.20, Residential Zones, the following incentive program is available regarding the residential density of new development projects in zones of the City which otherwise would apply the R-M residential density:

A. Average Unit-Size Density Incentive Program. Projects developed in accordance with the provisions of the Average Unit-Size Density Incentive Program established in Section 30.150.070, Average Unit-Size Density Incentives, hereof are exempt from the standard R-M residential density provisions specified in Table

30.20.030.B, Development Standards–Two-Unit and Multi-Unit Zones.

B. Development of Affordable Housing. Projects that meet the affordability criteria of the State Density Bonus Law or the City’s Affordable Housing Policies and Procedures may continue to propose development pursuant to the density incentives established in Chapter 30.145, Affordable Housing and Density Bonus and Development Incentives.

SECTION 8. Elimination of the program expiration date is categorically exempt from the California Environmental Quality Act under Section 15305 of the CEQA Guidelines [Minor Alterations in Land Use Limitations] and Santa Barbara Municipal Code (SBMC) section 22.100.070.C.5 Minor Alterations in Land Use Limitations. SBMC Section 22.100.070.C.5(c) specifies that that categorical exemptions in this class include “Adoption or amendment of land use or development ordinances, regulations, standards, or guidelines that substantially maintain existing land use intensity or density”. In addition, SBMC Section 22.100.070.C.5(g) specifies that exemptions include “Extension of time 15 limits on approved projects where circumstances have not changed.” Eliminating the Average Unit-Size Density Incentive Program expiration date continues a program that was previously analyzed without changes, and maintains existing land use intensity or density.

ORDINANCE NO.____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA APPROVING AND AUTHORIZING THE AIRPORT

DIRECTOR TO EXECUTE A COMMUNICATION FACILITIES

LICENSE AGREEMENT WITH COX BUSINESS AND SBA RAC
PARTICIPANTS/DBA AVAIRPROS SERVICES, LOCATED AT 25

DAVID LOVE PLACE, COMMENCING UPON THE EFFECTIVE

DATE OF THE ENABLING ORDINANCE

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

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, an Ordinance of the Council of the City of Santa Barbara approving and authorizing execution of a communication facilities license agreement with Cox Business and SBA RAC Participants/DBA AvAirPros Services, located at 25 David Love Place, a copy of which is on file with the City Clerk, is approved.

Agenda Item No. 4
File Code No. 560.01

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: December 5, 2023
TO: Mayor and Councilmembers
FROM: Streets Operations & Infrastructure Management Division, Public Works Department
SUBJECT: Prohibiting Heavy Vehicles on Portions of Alisos Streets and Sola Street [Ordinance Introduction]
RECOMMENDATION:

That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Municipal Code by Amending Section

10.60.040 Pertaining to Prohibiting Heavy Vehicles on Portions of Alisos Street and Sola Street.

DISCUSSION:

The Eastside Community Paseos Project and the Westside Community Paseos Project (Project) are both nearing construction completion. Part of the Project includes the construction of traffic diverters to eliminate end-to-end traffic on Alisos Street and Sola Street.

The traffic diverters were designed to accommodate turning movements by local commercial-sized vehicles such as trash collection, emergency vehicles, and local couriers. Highway-sized (67-foot long) commercial truck traffic has been observed using Alisos Street for end-to-end traffic as a bypass to Milpas Street. Commercial truck traffic is generally incompatible with local streets, and in this case, should be using arterial streets rather than local streets.

Staff recommends the following be added to 10.60.040 – Schedule of Heavy Vehicle Prohibition, as illustrated in the Attachment.
 Alisos Street from Cacique Street to Canon Perdido Street (100 south through 800 north blocks);
 Sola Street from Chapala Street to Bath Street (100 through 200 west blocks); and  Sola Street from Anacapa Street to Garden Street (100 through 200 east blocks).

The prohibition does not preclude trucks that need to use Alisos Street or Sola Street to make local deliveries, but prohibits heavy vehicles from using these as through streets.

Agenda Item No. 5
File Code No. 530.05
Council Agenda Report
Prohibiting Heavy Vehicles on Portions of Alisos Streets and Sola Street [Ordinance Introduction]
December 5, 2023

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Santa Barbara City CouncilDecember 5, 2023

Santa Barbara City Council
December 5, 2023