BUDGET/FINANCIAL INFORMATION:
This action includes the acceptance and appropriation of $85,800 in funds from Southern California Edison to complete maintenance and capital reinvestment work on City-owned land.
SUSTAINABILITY IMPACT:
The Mission Canyon Trailhead Repaving Project will assist with meeting the City’s sustainability goals by maintaining access to a popular recreational experience on Tunnel Trail.
A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].
ENVIRONMENTAL REVIEW:
The Public Works Director has determined that the Project is exempt under California Environmental Quality Act (CEQA) Guideline § 15301 (c) Existing Facilities.
CEQA Exemption Criteria
CEQA Guidelines§ 15301 (also known as the Class 1 exemption) covers the operation, repair, maintenance, or minor alteration of existing facilities involving no or negligible expansion of existing or former use. This Project falls under subdivision (c) of § 15301.
The Project complies with subdivision (c) as the repair and maintenance of the existing pavement does not result in an increase in use or capacity, but rather repairs the existing facilities and maintains access for recreation.
Therefore, the City Council is requested to confirm the exemption, approve the Project for CEQA purposes, and authorize the filing of a Notice of Exemption for the Project.
ATTACHMENTS: 1. Vicinity Map
2. Site Photograph
PREPARED BY: Adam Hendel, P.E., Principal Engineer/JH/MW/lm SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
This service has been provided to allow a visual display of City information. Every effort has been made to ensure the accuracy of the map and data. The City of Santa Barbara assumes no responsibility arising from the use of this information. THE MAPS AND ASSOCIATED DATA ARE PROVIDED WITHOUT A WARRANTY OF ANY KIND. This map was created using the City of Santa Barbara Mapping Analysis and Printing System application. 6,000 © City of Santa Barbara 1,000.000 Legend 1: WGS_1984_Web_Mercator_Auxiliary_Sphere0 500.000 1,000.000 Feet MAP DISCLAIMER Notes Vicinity Map Reported on 11/22/2023 09:10 AM City Limits Assessor's Parcels - City Street Centerlines 2015 Aerial Imagery Red: Band_1 Green: Band_2 Blue: Band_3 World Street Map ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA ACCEPTING FUNDS FROM SOUTHERN
CALIFORNIA EDISON AND AMENDING RESOLUTION NO.
23-076, ADOPTING THE BUDGET FOR FISCAL YEAR
2024, FOR THE MISSION CANYON TRAILHEAD
REPAVING PROJECT
WHEREAS, in accordance with Section 1205 of the City Charter, the City Administrator filed with the City Council a proposed budget for Fiscal Year 2024 (Fiscal Year) beginning July 1, 2023;
WHEREAS, the City Council is required to adopt a budget before the beginning of the Fiscal Year on July 1, 2023;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, this Resolution approves the amendment to the budget as provided herein.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT in accordance with the provisions of Section 1205 of the City Charter, the budget for the Fiscal Year 2024, as adopted by Resolution No. 23-076, is hereby amended as follows:
SECTION 1. The Council accepts funds from Southern California Edison for voluntary mitigation measures associated with the Tunnel Trail grading violation for the Mission Canyon Trailhead Repaving Project.
SECTION 2. The Council approves an increase in revenue and expenditure appropriations in the Water Capital Fund budget in Fiscal Year 2024 in the amount $85,800 for the Mission Canyon Trailhead Repaving Project.
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: November 2023 Investment Report
RECOMMENDATION:
That Council accept the November 2023 Investment Report.
DISCUSSION:
The attached investment report includes Investment Activity, Interest Revenue, a Summary of Cash and Investments, and Investment Portfolio detail as of November 30, 2023.
ATTACHMENT: November 2023 Investment Report
PREPARED BY: Salvatore Parrilla, Treasury Analyst
SUBMITTED BY: Lyndsay Maas, Assistant Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 8
File Code No. 260.02
INVESTMENT ACTIVITY INVESTMENT INCOME
PURCHASES OR DEPOSITS POOLED INVESTMENTS
11/15 LAIF 10,000,000 $ Interest Earned on Investments 681,612 $ 11/29 FFCB 2,000,000 Amortization 17,587
11/29 FHLB 2,000,000
Total 14,000,000 $ Total 699,199 $
SALES, MATURITIES, CALLS OR WITHDRAWALS
11/2 USTB (3,000,000) $
11/24 FHLMC (3,000,000)11/28 FHLB (3,000,000)
Total (9,000,000) $
ACTIVITY TOTAL 5,000,000 $ INCOME TOTAL 699,199 $
CITY OF SANTA BARBARA
Activity and Interest Report
November 30, 2023
ATTACHMENT
1 ENDING BALANCE AS OF October 31, 2023
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityUS Bank Checking Account 19,334,925 $ 0.750% 5.69% 1 (1) State of California Local Agency Investment Fund (LAIF) 65,000,000 3.670% 19.12% 1 (2)Treasury Securities - Coupon 51,745,955 1.752% 15.22% 670Treasury Discount 2,999,623 4.817% 0.88% 1Federal Agency Issues - Coupon 178,931,074 2.446% 52.63% 785Corporate/Medium Term Notes 6,998,706 1.352% 2.06% 580Supranationals Obligations 14,986,676 1.745% 4.41% 912
2.445% 100.00% 567 339,996,957
Totals and Averages $ 2.445% 100.00% 567 339,996,957
Total Cash and Investments 339,996,957 $
NET CASH AND INVESTMENT ACTIVITY FOR November 2023 7,222,478 $ ENDING BALANCE AS OF November 30, 2023 Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityUS Bank Checking Account 21,534,916 $ 0.750% 6.20% 1 (1) State of California Local Agency Investment Fund (LAIF) 75,000,000 3.845% 21.60% 1 (2)Treasury Securities - Coupon 51,759,766 1.752% 14.91% 640Federal Agency Issues - Coupon 176,938,696 2.495% 50.96% 792Corporate/Medium Term Notes 6,998,834 1.352% 2.02% 550Supranationals Obligations 14,987,224 1.745% 4.32% 882
2.512% 100.00% 548 347,219,435
Totals and Averages $ 2.512% 100.00% 548 347,219,435
Total Cash and Investments 347,219,435 $
Note: (1) Earnings Credit Rate (ECR) is provided at the rate of 0.750% by US Bank to help offset banking fees. (2) The average life of the LAIF portfolio as of Nov 30, 2023 is 244 days.
CITY OF SANTA BARBARA
Summary of Cash and Investments
November 30, 2023
2 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS LOCAL AGENCY INVESTMENT FUNDSLOCAL AGENCY INVESTMENT FUND - - - - 3.845 3.845 75,000,000.00 75,000,000.00 75,000,000.00 0.00 Subtotal, LAIF 75,000,000.00 75,000,000.00 75,000,000.00 0.00TREASURY SECURITIES - COUPONU S TREASURY NOTE 05/03/19 04/30/24 Aaa AA+ 2.250 2.342 2,000,000.00 1,999,286.14 1,974,460.00 (24,826.14)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,993,574.39 2,781,690.00 (211,884.39)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,991,036.23 1,866,320.00 (124,716.23)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,986,703.33 1,832,820.00 (153,883.33)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,989,860.65 1,860,160.00 (129,700.65)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,991,962.04 1,875,240.00 (116,722.04)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,993,750.00 1,822,500.00 (171,250.00)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,985,688.11 1,806,800.00 (178,888.11)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,986,400.66 1,808,280.00 (178,120.66)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,992,268.46 1,812,120.00 (180,148.46)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,992,677.25 2,946,090.00 (46,587.25)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,951,043.86 2,741,730.00 (209,313.86)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.210 3,000,000.00 2,997,190.32 2,869,920.00 (127,270.32)U S TREASURY NOTE 01/31/22 01/31/24 Aaa AA+ 0.875 1.145 3,000,000.00 2,998,665.47 2,977,620.00 (21,045.47)U S TREASURY NOTE 02/28/22 02/29/24 Aaa AA+ 1.500 1.548 2,000,000.00 1,999,769.15 1,980,860.00 (18,909.15)U S TREASURY NOTE 02/28/22 11/30/26 Aaa AA+ 1.625 1.863 2,000,000.00 1,986,399.23 1,842,500.00 (143,899.23)U S TREASURY NOTE 03/15/22 03/15/25 Aaa AA+ 1.750 1.827 3,000,000.00 2,997,120.94 2,878,470.00 (118,650.94)U S TREASURY NOTE 03/17/22 05/31/24 Aaa AA+ 2.000 2.006 2,000,000.00 1,999,936.32 1,967,120.00 (32,816.32)U S TREASURY NOTE 03/17/22 12/31/26 Aaa AA+ 1.750 2.170 2,000,000.00 1,975,521.40 1,847,960.00 (127,561.40)U S TREASURY NOTE 06/28/23 10/31/27 Aaa AA+ 4.125 4.124 2,000,000.00 2,000,000.00 1,981,480.00 (18,520.00)U S TREASURY NOTE 06/28/23 02/29/28 Aaa AA+ 4.000 4.058 2,000,000.00 1,995,456.94 1,972,500.00 (22,956.94)U S TREASURY NOTE 09/27/23 07/31/24 Aaa AA+ 3.000 5.456 2,000,000.00 1,968,441.56 1,970,160.00 1,718.44U S TREASURY NOTE 09/27/23 07/31/25 Aaa AA+ 4.750 5.160 2,000,000.00 1,987,013.37 1,996,720.00 9,706.63 Subtotal, Treasury Securities 52,000,000.00 51,759,765.82 49,413,520.00 (2,346,245.82)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,999,655.85 1,983,960.00 (15,695.85)FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.540 3,000,000.00 3,000,000.00 2,774,430.00 (225,570.00) Callable 12/22/23, Q FED AGRICULTURAL MTG CORP 06/09/22 08/20/24 - - 2.910 2.911 3,000,000.00 3,000,000.00 2,948,460.00 (51,540.00) Callable 12/09/23, QFED AGRICULTURAL MTG CORP 05/15/23 05/15/26 - - 3.625 3.625 2,000,000.00 2,000,000.00 1,957,600.00 (42,400.00) FED AGRICULTURAL MTG CORP 05/19/23 05/19/27 - - 4.100 4.100 2,000,000.00 2,000,000.00 1,949,340.00 (50,660.00) Callable 05/19/25, 1x FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,817,840.00 (182,160.00) Callable, PFEDERAL FARM CREDIT BANK 05/06/21 05/06/25 Aaa AA+ 0.710 0.710 2,000,000.00 2,000,000.00 1,881,540.00 (118,460.00) Callable, PFEDERAL FARM CREDIT BANK 09/08/21 09/08/26 Aaa AA+ 0.870 0.870 2,000,000.00 2,000,000.00 1,805,780.00 (194,220.00) Callable, PFEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,994,748.03 2,917,710.00 (77,038.03) Callable, PFEDERAL FARM CREDIT BANK 12/23/21 06/23/25 Aaa AA+ 1.170 1.170 3,000,000.00 3,000,000.00 2,828,820.00 (171,180.00) Callable, PFEDERAL FARM CREDIT BANK 12/22/21 06/22/26 Aaa AA+ 1.390 1.390 3,000,000.00 3,000,000.00 2,767,110.00 (232,890.00) Callable, PFEDERAL FARM CREDIT BANK 01/27/22 01/26/27 Aaa AA+ 1.780 1.780 3,000,000.00 3,000,000.00 2,752,500.00 (247,500.00) Callable, PFEDERAL FARM CREDIT BANK 02/16/22 02/16/27 Aaa AA+ 2.180 2.180 3,000,000.00 3,000,000.00 2,760,660.00 (239,340.00) Callable 02/16/24, PFEDERAL FARM CREDIT BANK 08/30/22 02/25/26 Aaa AA+ 3.320 3.470 3,000,000.00 2,990,603.10 2,913,270.00 (77,333.10)
QUALITY RATING
CITY OF SANTA BARBARA
Investment Portfolio
November 30, 2023
3 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS
QUALITY RATING
CITY OF SANTA BARBARA
Investment Portfolio
November 30, 2023
FEDERAL FARM CREDIT BANK 05/26/22 05/26/26 Aaa AA+ 3.375 3.375 3,000,000.00 3,000,000.00 2,901,450.00 (98,550.00) Callable, P FEDERAL FARM CREDIT BANK 10/19/22 10/19/26 Aaa AA+ 4.250 4.264 3,000,000.00 2,998,918.75 2,975,190.00 (23,728.75) FEDERAL FARM CREDIT BANK 11/29/22 11/18/24 Aaa AA+ 4.500 4.650 3,000,000.00 2,995,888.86 2,979,810.00 (16,078.86)FEDERAL FARM CREDIT BANK 03/29/23 03/29/27 Aaa AA+ 4.000 4.000 2,000,000.00 2,000,000.00 1,969,060.00 (30,940.00)FEDERAL FARM CREDIT BANK 04/05/23 04/05/27 Aaa AA+ 5.270 5.270 2,000,000.00 2,000,000.00 1,982,060.00 (17,940.00) Callable 04/05/24, P FEDERAL FARM CREDIT BANK 05/09/23 05/09/28 Aaa AA+ 5.020 5.020 2,000,000.00 2,000,000.00 1,968,060.00 (31,940.00) Callable 05/09/24, PFEDERAL FARM CREDIT BANK 06/30/23 06/30/28 Aaa AA+ 5.000 5.000 2,000,000.00 2,000,000.00 1,974,320.00 (25,680.00) Callable 06/30/25, PFEDERAL FARM CREDIT BANK 08/25/23 07/17/26 Aaa AA+ 4.625 4.750 2,000,000.00 1,993,844.64 2,000,700.00 6,855.36 FEDERAL FARM CREDIT BANK 08/30/23 06/23/26 Aaa AA+ 4.820 5.068 2,000,000.00 1,988,167.82 1,987,280.00 (887.82) Callable 06/23/25, P FEDERAL FARM CREDIT BANK 11/29/23 11/24/27 Aaa AA+ 5.120 5.120 2,000,000.00 2,000,000.00 2,000,020.00 20.00 Callable 11/24/25, PFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.580 0.580 3,000,000.00 3,000,000.00 2,745,510.00 (254,490.00) Callable 01/28/24, QFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,764,380.00 (235,620.00) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,767,410.00 (232,590.00)FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,752,380.00 (247,620.00) Callable 02/25/24, A FEDERAL HOME LOAN BANK 03/16/21 03/16/26 Aaa AA+ 1.000 0.800 2,000,000.00 2,000,000.00 1,845,040.00 (154,960.00) FEDERAL HOME LOAN BANK 05/20/21 05/20/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,831,980.00 (168,020.00) Callable 02/20/24, Q FEDERAL HOME LOAN BANK 05/26/21 12/26/25 Aaa AA+ 0.900 0.900 3,000,000.00 3,000,000.00 2,769,090.00 (230,910.00) Callable 02/26/24, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,909,020.00 (90,980.00) Callable 02/26/24, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,873,480.00 (126,520.00) Callable 12/10/23, QFEDERAL HOME LOAN BANK 06/10/21 06/10/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,827,960.00 (172,040.00) Callable 12/10/23, QFEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,884,360.00 (115,640.00) Callable 12/28/23, QFEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,915,920.00 (84,080.00) Callable 12/23/23, QFEDERAL HOME LOAN BANK 09/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,884,360.00 (115,640.00) Callable 12/28/23, QFEDERAL HOME LOAN BANK 09/28/21 09/28/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,804,400.00 (195,600.00) Callable 12/28/23, QFEDERAL HOME LOAN BANK 10/28/21 10/28/26 Aaa AA+ 1.250 1.125 2,000,000.00 2,000,000.00 1,822,760.00 (177,240.00) FEDERAL HOME LOAN BANK 12/28/21 06/28/24 Aaa AA+ 0.920 0.920 3,000,000.00 3,000,000.00 2,925,960.00 (74,040.00) Callable 12/28/23, Q FEDERAL HOME LOAN BANK 12/28/21 02/28/25 Aaa AA+ 1.125 1.125 3,000,000.00 3,000,000.00 2,853,240.00 (146,760.00) Callable 12/28/23, QFEDERAL HOME LOAN BANK 12/29/21 12/29/23 Aaa AA+ 0.700 0.700 3,000,000.00 3,000,000.00 2,989,290.00 (10,710.00) Callable, PFEDERAL HOME LOAN BANK 12/30/21 12/30/24 Aaa AA+ 1.000 1.000 3,000,000.00 3,000,000.00 2,865,900.00 (134,100.00) Callable, PFEDERAL HOME LOAN BANK 01/26/22 01/26/27 Aaa AA+ 1.125 1.788 3,000,000.00 3,000,000.00 2,776,620.00 (223,380.00) Callable 01/26/24, 1x - S/UFEDERAL HOME LOAN BANK 02/28/22 05/28/24 Aaa AA+ 1.450 1.450 3,000,000.00 3,000,000.00 2,944,800.00 (55,200.00) FEDERAL HOME LOAN BANK 03/29/22 03/29/27 Aaa AA+ 2.375 2.375 3,000,000.00 3,000,000.00 2,792,370.00 (207,630.00) Callable 12/29/23, Q FEDERAL HOME LOAN BANK 04/21/22 04/21/26 Aaa AA+ 3.000 3.000 2,000,000.00 2,000,000.00 1,921,960.00 (78,040.00) Callable 04/21/24, AFEDERAL HOME LOAN BANK 04/25/22 04/25/25 Aaa AA+ 2.750 2.750 2,000,000.00 2,000,000.00 1,937,160.00 (62,840.00) FEDERAL HOME LOAN BANK 03/23/23 03/13/26 Aaa AA+ 4.125 4.137 2,000,000.00 1,999,339.33 1,980,820.00 (18,519.33)FEDERAL HOME LOAN BANK 05/08/23 02/08/24 Aaa AA+ 5.000 5.010 2,000,000.00 2,000,000.00 1,998,380.00 (1,620.00)FEDERAL HOME LOAN BANK 06/26/23 06/09/28 Aaa AA+ 4.000 4.071 2,000,000.00 1,994,156.37 1,968,660.00 (25,496.37)FEDERAL HOME LOAN BANK 06/28/23 06/28/27 Aaa AA+ 5.300 5.300 2,000,000.00 2,000,000.00 1,990,900.00 (9,100.00) Callable 06/28/24, 1x FEDERAL HOME LOAN BANK 06/30/23 06/26/26 Aaa AA+ 5.300 5.300 2,000,000.00 2,000,000.00 1,997,000.00 (3,000.00) Callable 12/26/23, 1xFEDERAL HOME LOAN BANK 08/24/23 09/10/27 Aaa AA+ 4.500 4.511 2,000,000.00 1,999,178.63 2,003,340.00 4,161.37 FEDERAL HOME LOAN BANK 11/29/23 11/17/26 Aaa AA+ 4.625 4.535 2,000,000.00 2,004,890.82 2,003,180.00 (1,710.82)FEDERAL HOME LOAN MTG CORP 11/25/20 11/25/25 Aaa AA+ 0.625 0.625 3,000,000.00 3,000,000.00 2,767,170.00 (232,830.00) Callable 11/25/24, A FEDERAL HOME LOAN MTG CORP 09/09/20 12/09/24 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,854,920.00 (145,080.00) Callable 12/09/23, QFEDERAL HOME LOAN MTG CORP 06/22/22 03/22/24 Aaa AA+ 2.750 2.751 4,000,000.00 4,000,000.00 3,967,760.00 (32,240.00) FEDERAL HOME LOAN MTG CORP 06/23/22 06/23/27 Aaa AA+ 3.500 3.500 3,000,000.00 3,000,000.00 2,872,530.00 (127,470.00) Callable 12/23/23, Q 4 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS
QUALITY RATING
CITY OF SANTA BARBARA
Investment Portfolio
November 30, 2023
FEDERAL HOME LOAN MTG CORP 06/28/22 06/28/24 Aaa AA+ 3.050 3.050 4,000,000.00 4,000,000.00 3,948,040.00 (51,960.00) Callable 12/28/23, Q FEDERAL HOME LOAN MTG CORP 09/29/22 09/29/27 Aaa AA+ 4.750 4.750 3,000,000.00 3,000,000.00 2,946,030.00 (53,970.00) Callable 12/29/23, QFEDERAL HOME LOAN MTG CORP 09/19/22 09/19/24 Aaa AA+ 3.700 3.700 3,000,000.00 3,000,000.00 2,960,550.00 (39,450.00) FEDERAL HOME LOAN MTG CORP 11/22/22 11/22/27 Aaa AA+ 5.125 5.125 3,000,000.00 3,000,000.00 2,974,920.00 (25,080.00) Callable 11/22/24, 1x FEDERAL HOME LOAN MTG CORP 11/30/22 08/28/24 Aaa AA+ 5.000 5.005 3,000,000.00 3,000,000.00 2,987,550.00 (12,450.00) FEDERAL HOME LOAN MTG CORP 04/12/23 07/12/27 Aaa AA+ 4.750 4.703 2,000,000.00 2,000,000.00 1,969,120.00 (30,880.00) Callable 07/12/24, A FEDERAL HOME LOAN MTG CORP 08/30/23 07/26/28 Aaa AA+ 5.650 5.684 2,000,000.00 1,997,154.59 1,997,800.00 645.41 Callable 07/26/24, QFEDERAL HOME LOAN MTG CORP 10/19/23 07/18/28 Aaa AA+ 5.000 5.212 2,000,000.00 1,982,930.08 2,000,480.00 17,549.92 Callable 07/18/25, 1xFEDERAL HOME LOAN MTG CORP 10/19/23 10/17/28 Aaa AA+ 6.000 6.009 2,000,000.00 1,999,218.69 2,006,060.00 6,841.31 Callable 07/17/24, QFEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,714,400.00 (285,600.00) Callable 02/26/24, QFEDERAL NATL MORTGAGE ASSN 11/17/20 05/17/24 Aaa AA+ 0.375 0.375 3,000,000.00 3,000,000.00 2,931,780.00 (68,220.00) Callable 02/17/24, Q Subtotal, Federal Agencies 177,000,000.00 176,938,695.56 170,043,710.00 (6,894,985.56) SUPRANATIONAL OBLIGATIONSINTERNATIONAL BANK FOR RECONST 01/22/21 10/28/25 Aaa AAA 0.500 0.500 3,000,000.00 3,000,000.00 2,766,270.00 (233,730.00)INTERNATIONAL BANK FOR RECONST 09/09/22 09/09/27 Aaa AAA 4.000 4.000 3,000,000.00 3,000,000.00 2,895,990.00 (104,010.00) Callable 09/09/24, A INTERNATIONAL BANK FOR RECONST 06/26/23 06/26/28 Aaa AAA 4.500 4.528 2,000,000.00 1,997,715.28 1,988,200.00 (9,515.28) Callable 06/26/26, 1xINTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,894.36 2,887,770.00 (112,124.36) INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,997,504.00 1,822,600.00 (174,904.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,992,110.59 1,859,820.00 (132,290.59) Subtotal, Supranationals 15,000,000.00 14,987,224.23 14,220,650.00 (766,574.23)CORPORATE/MEDIUM TERM NOTESAPPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,998,478.67 1,947,820.00 (50,658.67)APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,670.44 2,751,210.00 (248,460.44)TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,000,684.55 1,921,080.00 (79,604.55) Subtotal, Corporate Securities 7,000,000.00 6,998,833.66 6,620,110.00 (378,723.66)CHECKING ACCOUNTUS BANK CHKNG ACCNT - - - - 0.750 0.750 21,534,916.07 21,534,916.07 21,534,916.07 0.00 Subtotal, Checking Account 21,534,916.07 21,534,916.07 21,534,916.07 0.00TOTALS 347,534,916.07 347,219,435.34 336,832,906.07 (10,386,529.27) Market values have been obtained from the City's safekeeping agent, US Bank. 5 2.51%
4.73%5.45%
3.85%
0.00.51.01.52.02.53.03.54.04.55.05.56.0 Nov'22 Dec'22 Jan'23 Feb'23 Mar'23 Apr'23 May'23 Jun'23 Jul'23 Aug'23 Sep'23 Oct'23 Nov'23 Yield ‐ %
INVESTMENT YIELDS (1‐Yr Period)
City Portfolio 2‐yr Treasury 3‐mo Treasury LAIF
2.51%
4.73%
5.45%3.85%
0.00.51.01.52.02.53.03.54.04.55.05.56.0 Nov'19 Nov'20 Nov'21 Nov'22 Nov'23 Yield ‐ %
INVESTMENT YIELDS (5‐yr Period)
City Portfolio 2‐yr Treasury 3‐mo Treasury LAIF
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: City Attorney’s Office
SUBJECT: Authorization to Amend Legal Services Agreement with Colantuono Highsmith & Whatley, PC [Agreement]
RECOMMENDATION:
That Council authorize the City Attorney to increase the not to exceed amount for the legal service agreement with Colantuono Highsmith & Whatley, a professional corporation, for legal services relating to 1210 Cacique Street, LLC v. COSB, et al. USDC Case No. 2:23- cv-08152-PA-RAO in an amount not to exceed $325,000.
DISCUSSION:
In October 2023, the City entered into an agreement with Colantuono Highsmith & Whatley for legal advice and representation with respect to the above litigation. Expenditures on the contract are anticipated to exceed the current contract amount of $35,000. Increasing the contract amount by an additional $290,000 is necessary to avoid an interruption of service.
BUDGETARY IMPACTS:
The cost for legal support and related costs for this case will be paid from the Self Insurance Fund.
SUBMITTED BY: Tava Ostrenger, Acting City Attorney
APPROVED BY: Tava Ostrenger, Acting City Attorney
APPROVED BY: City Administrator's Office
Agenda Item No. 9
File Code No. 160.03
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2023
TO: Mayor and Councilmembers
FROM: Internal Operations, Police Department
SUBJECT: Increase in Professional Services Agreement No. 26,871 with Data Ticket, Inc. for Electronic Parking Citation Services [Agreement] RECOMMENDATION:
That Council authorize the execution of a one-year contract extension of the established Professional Service Agreement No. 26,871 with Data Ticket, Inc., and increase agreement by $246,000 for electronic parking citation services in FY 2024; this amendment will bring the total value of the three-year agreement to $971,000.
DISCUSSION:
Background
The Police Department provides parking enforcement of on-street parking regulations within City limits (approximately 42 square miles), which includes regulations related to timed zones, residential parking permit areas, and street sweeping. The Parking Enforcement Officers (PEO) also enforce five surface City parking lots for appropriate permits.
In January 2020, the City entered into a new parking citation services agreement with Data Ticket, Inc. for a period of three years. We are now at the end of the initial agreement and are requesting to implement the first of two one year extensions. Data Ticket process all parking citations, noticing, billing and revenue collection. The one year extension will cost $246,000.
BUDGET/FINANCIAL INFORMATION:
There are funds available in the Fiscal Year 2024 Police Department budget for this agreement.
A copy of the agreement may be requested from the Police Department for public review by emailing [email protected].
Agenda Item No. 10
File Code No. 520.04
Council Agenda Report
Increase in Professional Services Agreement No. 26,871 with Data Ticket, Inc. for Electronic Parking Citation Services [Agreement]
January 9, 2024
PREPARED BY: Alec Ayala, Business Manager
SUBMITTED BY: Kelly Gordon, Chief of Police
APPROVED BY: City Administrator's Office
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: Police Department; Downtown Team Division, Public Works Department
SUBJECT: Amendments to Automated License Plate Recognition Policy RECOMMENDATION:
That Council approve amendments to the City of Santa Barbara Automated License Plate Recognition Policy to assist public safety in response to critical incidents or investigations and improve customer service at Downtown parking lots.
DISCUSSION:
Background
The City of Santa Barbara (City) manages approximately 7,360 parking spaces in the City lots located at the Waterfront, Airport, and Downtown corridor. The City Departments use Parking Access and Revenue Control Systems (PARCS) to collect parking fees, control lot access, and ensure customer compliance with rules and regulations. Newer PARCS incorporate Automated License Plate Recognition (ALPR) technology to optimize revenue collection and enhance the customer experience.
The City’s ALPR-equipped PARCS use specialized cameras to capture images of license plates when a vehicle enters or exits a parking lot. These images are fed through programs that use character recognition algorithms to convert the images into computerreadable data. This data is then used to determine what time a vehicle entered and exited a parking lot and to calculate parking fees for each customer. If no fees are owed, the ALPR system enables the PARCS to automatically raise the exit gate without the customer needing to supply a ticket or have further interaction with the system. ALPR also enables parking permit holders to pass in and out of lots without having to display or scan a permit or pay fees upon exit. The license plate number takes the place of a traditional access card, hang tag, or permit sticker.
The City’s ALPR-equipped PARCS only capture a vehicle’s license plate number, entrance time, exit time, and fees due. These systems do not collect any information about the registered owner of a vehicle, the driver of a vehicle, the occupant(s) of a vehicle, vehicle registration status, or vehicle type.
Agenda Item No. 11
File Code No. 550.01
Council Agenda Report
Amendments to Automated License Plate Recognition Policy January 9, 2024
California Civil Code 1798.90.51 requires the City, as a public ALPR operator, to adopt a usage and privacy policy to ensure that the collection, use, maintenance, sharing, and dissemination of ALPR information is consistent with respect for individuals’ privacy, security, and civil liberties. Civil Code Section 1798.90.55 also requires that the City provide an opportunity for the public to review and comment on this Policy at a Council meeting.
Accordingly, on September 29, 2020, the City Council adopted the City of Santa Barbara Automated License Plate Recognition Policy, pursuant to the requirements under California Civil Code Section 1798.90.51. This policy governs the City’s collection, use, storage, and distribution of ALPR data for parking operations.
Proposed Amendments
Having operated ALPR systems in compliance with this policy for three years, City staff recommends two changes to improve parking management and address public safety issues.
1. Update the process for disclosure of ALPR data to law enforcement:
The current adopted policy permits the City to provide ALPR information to law enforcement agencies only if a warrant or other type of court order is issued. The proposed change removes this requisite and instead requires a case or incident number to be provided to respond to a public safety incident or to assist in a criminal investigation. There are many occasions where there is an immediate need to obtain this information without the delay that the warrant process presents.
Some examples of this need include the identification of missing persons, responses to AMBER alerts, and the presence of a stolen vehicle.
It is important to again note that ALPR data only consists of the captured images of license plates and the times a vehicle has entered and exited a public parking lot. To that point, there are several federal and state court opinions that have determined that ALPR checks of license plate numbers do not qualify as searches under the Fourth Amendment. For example, the Ninth Circuit Court of Appeals ruled in U.S. v. Diaz-Castaneda that a license plate check was not a search under the Fourth amendment. The court noted that individuals do not enjoy a subjective expectation of privacy for their license plates, and even if they did, the court concluded that society would not recognize this belief as reasonable. License plates are visible on a car’s exterior for anyone to see and are intended to provide information about a vehicle to the police. It is not reasonable for a person to believe that their expectation of privacy has been breached when an officer sees what is visible and uses that information to check the status of the vehicle and its registered owner. Nevertheless, the Santa Barbara Police Department will predicate their requests on a need-to-know basis when making an ALPR data request in that such a request will assist in investigations and/or responding to incidents.
Council Agenda Report
Amendments to Automated License Plate Recognition Policy January 9, 2024
2. Increase the length of data retention for Downtown Parking:
The adopted policy allows Airport and Waterfront parking to retain ALPR data for up to 30 days but requires Downtown Parking to purge data after 72 hours. Staff recommends revising the policy to enable Downtown Parking to retain ALPR data for up to 30 days, in keeping with other departments. Downtown Parking offers long-term parking at the Depot Lot and for 24/7 (resident) permit holders in designated locations. Additionally, though prohibited, customers frequently park for longer durations in other Downtown lots. Increasing the amount of time data is retained will improve customer service by eliminating delays and confusion created when a customer, whose entry time has been purged, attempts to exit a parking lot. Aligning Downtown Parking data retention limits with other departments would not result in any changes to customer privacy protections.
BUDGET/FINANCIAL INFORMATION:
This action has no financial/budget impact on the City.
ENVIRONMENTAL REVIEW:
The proposed amendments to the Automated License Plate Recognition Policy are not subject to CEQA. They involve a change to administrative policy and have no effect on the physical environment.
ATTACHMENT: City of Santa Barbara Automated License Plate Recognition Policy PREPARED BY: Sarah Clark, Public Works Downtown Team Manager/KG/JD/nv SUBMITTED BY: Chief Kelly Gordon, Santa Barbara Police Department Clifford M. Maurer, P.E., Public Works Director
APPROVED BY: City Administrator’s Office
City of Santa Barbara
Automated License Plate Recognition Policy
Adopted September 28, 2020
Updated January 9, 2024
What is it: Automated License Plate Recognition (ALPR) technology utilizes cameras to capture and store digital images of license plates and uses character recognition algorithms to identify license plate characters. An ALPR system creates a searchable computerized database resulting from the data collected by fixed cameras located at the entrance/exit of numerous City-operated public parking lots, and vehicle-mounted or handheld cameras for on-street parking spaces designated as priced or paid parking.
ALPR system data includes license plate numbers as well the date, time, and location when the image was collected.
Purpose: The purpose of this policy is to define the City’s appropriate use, maintenance, collection, security, and retention of all ALPR information, and the authorized users of the City’s ALPR technology, in compliance with all applicable federal, state, and local laws. This policy is separate from any ALPR technology used by the Santa Barbara Police Department (SBPD). The SBPD maintains their own policy for ALPR.
The City of Santa Barbara utilizes ALPR technology to capture, analyze, and store digital license plate data and images to enable the rapid identification of vehicles in support of parking operations and compliance activities. ALPR shall supplement or replace paper tickets to log the times at which a vehicle enters or exits a City parking lot in order to determine the fee due upon exit. ALPR and customer license plate data shall also supplement or replace proximity access cards and permit stickers to grant lot entry to monthly and annual parking permit holders.
License plate information paired to vehicles entering City-operated public parking lots is used to improve access control and the enforcement of City parking ordinance violations in the lots that utilize ALPR. For example, information on vehicles coming into a lot is anonymized and aggregated to analyze various metrics including parking patterns, permit-type usage, and compliance.
Restricted Uses: The City only uses ALPR technology to collect license plate data within public view. The City does not use ALPR technology for the purpose of monitoring individual activities that are otherwise protected by the First Amendment to the United States Constitution. The cameras shall not be used in areas where there is a reasonable expectation of privacy, and shall not be used to harass, intimidate, or discriminate against any individual or group.
Training: Pursuant to California Civil Code Section 1798.90.51(b), all authorized users
ATTACHMENT
shall receive training prior to being granted access to an ALPR system and data. A record of all completed training is maintained by the respective City departments. ALPR operators receive initial training from the vendor providing the ALPR software and hardware. The training includes the procedure and proper use of the system prior to being granted access to an ALPR system. In addition, each user also receives an annual refresher training from the Program Manager or designee. The training includes:
1. Applicable federal and state law;
2. Functionality of the equipment; and
3. Safeguarding of password information, access to ALPR systems, and ALPR information.
Access: Authorized users with access to ALPR data shall include staff with a City operational need to specifically oversee such a system and/or are responsible for parking operations and enforcement within City Departments including Public Works, Waterfront, and Airport, as well as City-contracted parking operations and enforcement vendors. The Program Manager for each City Department employing an ALPR system is the custodian and head administrator of its ALPR systems and their operation. The only individuals with access and the ability to query data in the system are:
• Program Manager, and their designee(s);
• Parking Supervisors;
• Parking Coordinators;
• Parking Resources Specialist;
• Parking Office Specialist;
• Waterfront Operations Manager;
• Downtown Plaza and Parking Manager;
• Harbor Patrol Supervisor;
• Airport Patrol Supervisor;
• Harbor Patrol Officers; and
• Airport Patrol Officers.
All logins and queries are stored and monitored, and contain the following information:
• Username;
• Date;
• Time;
• Purpose of query; and
• License plate and other criteria used to query the system.
This data shall be stored and monitored by each respective Department’s Program Manager, Harbor Patrol, Airport Patrol, Parking Services, and Parking Operations staff.
License plates are only referenced against the respective Department’s Annual Parking/Parking Permit vehicle database, and tickets generated at the entrance columns.
The Program Manager or their designee also run periodic audits to ensure access to the data was made by authorized persons for authorized uses.
ATTACHMENT
Information Collected: The following information may be collected by the ALPR system:
• License plate image captured;
• License plate number;
• License plate state;
• Date;
• Time; and
• Location.
Information Stored & Data Retention: ALPR data shall be sent to and stored in the ALPR vendor’s regional database. The database stores license plate numbers of monthly and annual parking permit holders and hourly customers. This information is used by the ALPR system to allow permit holders to gain entry to the City parking lot for which their permit is valid and to exit without having to provide payment. The permit holder’s license plate number is used to supplement or replace proximity access cards, plastic hang tags, stickers, and other permit materials.
Routine data collection for Airport and Waterfront parking shall not be stored beyond 30 days, and for Downtown parking 72 hours except when lawfully required by court order.
After the aforementioned retention times elapse, the vendor shall purge routine data records. The data records stored on the regional ALPR server include photographs of the vehicle (close-up of the license plate and context photo of the rear of the vehicle), and accompanying license plate number, date, time, and location in the field; such records do not directly identify a particular person.
Security: The City of Santa Barbara uses administrative, operational, technical and physical safeguards to protect ALPR information from unauthorized access, use, destruction, modification or disclosure including the following safeguards:
• Administrative: Username and password-protected access to the ALPR system.
The system shall document all information accessed by username, and the database usage shall be monitored and audited.
• Operational: Training system users on proper use and secure practices when using ALPR and its database.
• Physical: All network equipment and servers containing sensitive data are maintained in a secure off-site location, and accessed only by authorized personnel. This includes the secure storage of computers with access to the offsite database. • Technical: All information is encrypted to protect any personally identifiable information. ALPR system workstations and servers shall be updated with the latest security patches on a regular basis. ALPR data shall be secured, encrypted, and backed up regularly.
In the very unlikely event of an information breach that constitutes a violation under California Penal Code Section 502, all individuals who are believed to be affected or
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have their information compromised shall be notified by the City of Santa Barbara, via the affected City Department(s).
Quality Assurance: Collection of ALPR data is automated so the license plate images and details of collection are included in the system without review. Although infrequent, license plate translation may be incomplete or inaccurate. The Program Manager or their designee ensure accuracy and correct license plate translation errors when identified.
Users also confirm the computer translation prior to taking any action based on ALPR results.
Releasing ALPR Data: The City does not share ALPR information with any commercial or private entity, other than City parking contractors and enforcement vendors, as necessary to conduct City parking operations. The City includes confidentiality provisions in its agreements with any parking contractors and/or vendors to prohibit any use or distribution of ALPR information for any purpose other than the authorized Uses under this Policy. Information gathered or collected and records retained by the City of Santa Barbara must not be:
• Sold, published, exchanged, or disclosed for commercial purposes. • Disclosed or published without authorization.
• Disseminated to persons not authorized to access or use the information.
The City shall provide ALPR data to a federal, state, or local law enforcement agency or any other public agency only if a warrant or other court order is issued and served. The City shall provide ALPR data to a federal, state, or local law enforcement agency for use in criminal investigations or to respond to public safety incidents upon receipt of a request that contains a case or incident number. In addition, information gathered shall not be disclosed to the public or in a civil matter unless such disclosure is required by law or court order.
Requests for Images from Members of the Public: Persons that have a court order or preservation letter, and are interested in requesting ALPR data, are directed to the Santa Barbara City Clerk’s Office. Persons that do not have a court order or preservation letter and are interested in requesting ALPR data are also directed to the Santa Barbara City Clerk’s Office.
Enforcement: Violation of this Policy by a City employee, contractor, or other authorized user, may lead to suspension or termination of that user’s access to the ALPR system.
ATTACHMENT
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Appointment Of Mayor Pro Tempore, Ordinance Committee, and Finance Committee
RECOMMENDATION:
That Council consider the appointment of a Mayor Pro Tempore, and Chairs and Members of the Ordinance and Finance Committees.
DISCUSSION:
Designation of Mayor Pro Tempore - Section 504 of the Charter says that "The City Council shall designate one (1) of its members as Mayor Pro Tempore, who shall serve in such capacity at the pleasure of the City Council." Councilmember Alejandra Gutierrez presently holds the position.
Appointment of Ordinance Committee – Santa Barbara Municipal Code Section 2.050.020, adopted in 2023, provides that members of the Ordinance Committee shall be appointed by the City Council for a specific or indefinite term. The City Council shall designate one of its members as the Chairperson of the Committee. The current membership of this committee is as follows:
Oscar Gutierrez, Chair
Kristen W. Sneddon
Mike Jordan
Mayor Randy Rowse, Alternate
Appointment of Finance Committee – Santa Barbara Municipal Code Section 2.06.020, adopted in 2023, provides that members of the Finance Committee shall be appointed by the City Council for a specific or indefinite term. The City Council shall designate one of its members as the Chairperson of the Committee. The current membership of the Finance Committee is as follows:
Eric Friedman, Chair
Meagan Harmon
Alejandra Gutierrez
Mayor Randy Rowse, Alternate
Agenda Item No. 12
File Code No. 120.03
Council Agenda Report
Appointment Of Mayor Pro Tempore, Ordinance Committee, and Finance Committee January 9, 2024
PREPARED BY: Nicole Grisanti, Administrator’s Office Supervisor SUBMITTED BY: Sarah J. Knecht, Interim City Administrator APPROVED BY: City Administrator's Office
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Advisory Groups and Council Liaisons Appointments RECOMMENDATION:
That Council consider the appointments of Council Liaisons to Advisory Groups and Boards and Commissions.
DISCUSSION:
It is recommended that Council appoint liaisons to the Advisory Groups and Boards and Commissions listed on the attachment.
ATTACHMENT: 2023 Advisory Groups Council Liaisons
PREPARED BY: Nicole Grisanti, Administrator’s Office Supervisor SUBMITTED BY: Sarah J. Knecht, Interim City Administrator APPROVED BY: City Administrator's Office
Agenda Item No. 13
File Code No. 120.02
2023 COUNCIL LIAISON APPOINTMENTS
2023
Mayor Pro Tempore...........................................................................................A. Gutierrez Advisory Groups:
Access Advisory Committee............................................................................... O. Gutierrez Airport Commission ............................................................................................... Friedman Architectural Board of Review..................................................... Harmon; Alt: A. Gutierrez Arts Advisory Committee...................................................................................O. Gutierrez Building and Fire Code Board of Appeals ...................................................................Rowse Citizens’ Oversight Committee ..........................................................................A. Gutierrez Civil Service Commission....................................................................................A. Gutierrez Community Development and Human Services Committee.................................. Sneddon Community Events and Festivals Committee ....................................................O. Gutierrez Creeks Advisory Committee................................................................. Sneddon; Alt: Jordan Downtown Parking Committee ............................................................Jordan; Alt: Harmon Fire and Police Commission...............................................................................O. Gutierrez Harbor Commission ....................................................................................................Jordan Historic Landmarks Commission.................................................Sneddon; Alt: O. Gutierrez Housing Authority Commission ................................................... Harmon; Alt: A. Gutierrez Library Board.......................................................................................................... Friedman Living Wage Advisory Committee..........................................A. Gutierrez; Alt: O. Gutierrez Neighborhood Advisory Council ........................................................................O. Gutierrez Parks and Recreation Commission ............................................. A. Gutierrez; Alt: Sneddon Planning Commission..................................................................................................Jordan Rental Housing Mediation Board...........................................A. Gutierrez; Alt: O. Gutierrez Santa Barbara Youth Council ....................................................... O. Gutierrez, A. Gutierrez Single Family Design Board.............................................................Jordan; Alt: A. Gutierrez Sister Cities Board ...........................................................................O. Gutierrez; Alt: Rowse Transportation and Circulation Committee................................................................Jordan Water Commission.......................................................................... Sneddon; Alt: Friedman Standing Committees:
Finance Committee.................................................Chair: Friedman; A. Gutierrez, Harmon Ordinance Committee................................................ Chair: O. Gutierrez; Jordan, Sneddon Sustainability Council Committee...........................................Friedman, Harmon, Sneddon State Street Advisory Committee ............................................... Jordan, Harmon, Sneddon Attachment
2023 COUNCIL LIAISON APPOINTMENTS
2023
Ad Hoc Committees:
Committee on Legislation.......................................................Friedman, Harmon, Sneddon De La Guerra Plaza Revitalization Design Advisory Committee ..............Harmon, Sneddon Land Development Team Oversight Subcommittee............Friedman, A. Gutierrez, Jordan State Street Interim Operations Ad Hoc Committee……..……Sneddon, O. Gutierrez, Jordan City Related Agencies:
Coast Village Association ........................................................................................ Sneddon Downtown Santa Barbara....................................................................... Jordan; Alt: Rowse Looking Good Santa Barbara ...............................................................Sneddon; Alt: Rowse PATH Neighborhood Partnership...........................................O. Gutierrez; Alt: A. Gutierrez Presidio Joint Powers Committee............................................................................ Harmon Santa Barbara Beautiful ......................................................................................... Friedman Santa Barbara Center for the Performing Arts......................O. Gutierrez; Alt: A. Gutierrez Visit Santa Barbara......................................................................................................Jordan Santa Barbara Chamber of Commerce…. ...........................................Jordan; Alt: Friedman PARC Foundation………………………………………………………………………………….……..…….Friedman Regional Agencies:
Beach Erosion Authority for Clean Oceans and Nourishment (BEACON)Friedman; Alt: Jordan Cachuma Conservation Release Board (CCRB)............................... Sneddon; Alt: Friedman Cachuma Operation and Maintenance Board (COMB) .................. Sneddon; Alt: Friedman Home For Good............................................................................................Jordan, Harmon Central Coast Water Authority (CCWA).......................................... Friedman; Alt: Sneddon City/County Affordable Housing Task Group........................................... Sneddon, Harmon Coastal Rail Coordinating Council (appointed by SBCAG) ..........................................Rowse Community Action Commission.........................................................................O. Gutierrez Los Angeles-San Diego Rail Corridor Agency (LOSSAN) (appointed by SBCAG) .........Rowse Santa Barbara Co. Air Pollution Control District Bd. Of Directors (APCD) Rowse; Alt: Friedman Santa Barbara County Association of Governments (SBCAG) ............Rowse; Alt: Friedman Santa Barbara Metropolitan Transit District Board....................................................Rowse South Coast Youth Safety Partnership........................................ A. Gutierrez; Alt: Sneddon National and State Organizations:
League of California Cities Board................................................................................Rowse U.S. Conference of Mayors Hunger and Homelessness Task Group (Chair) ..............Rowse
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Anniversary of January 9, 2018 Debris Flow
RECOMMENDATION:
That Council receive a presentation from staff to remember the lives lost during the January 9, 2018 Debris Flow and share some of the proactive steps the City is taking to address these threats and others in response to a changing climate.
DISCUSSION:
On January 9, 2018, the Montecito debris flow tragically struck our community leading to the loss of 23 lives. This natural disaster, which occurred in the aftermath of the Thomas Fire, one of the largest wildfires in California’s history, resulted when large areas of vegetation in the hills above Montecito were burned by the fire. The slopes were then left vulnerable to erosion and mudslides when heavy rainfall occurred, resulting in devastating consequences. During the event, emergency response teams, including firefighters, search and rescue personnel, and volunteers, worked tirelessly to rescue survivors and recover victims.
The disaster highlighted the interconnected nature of wildfire and subsequent debris flows, emphasizing the importance of proper land management, early warning systems, and preparedness measures in regions prone to natural hazards. The response to the Montecito debris flow prompted increased awareness and discussions about the risks associated with urban development in fire-prone areas and the need for improved mitigation strategies to protect vulnerable communities from the these and other climate change impacts.
On the five-year anniversary of the debris flow, the City of Santa Barbara again experienced torrential rains and flooding which significantly impacted low-lying areas within the city. Benefiting from the lessons learned from the previous natural disasters, City staff worked around the clock to notify residents, including our most vulnerable populations, as well as to ensure the availability of emergency response resources, and to implement mitigation measures to reinforce our critical infrastructure.
Agenda Item No. 14
File Code No. 520.02
Council Agenda Report
Anniversary of January 9, 2018 Debris Flow
January 9, 2024
The City recognizes that, as the climate continues to change, extreme weather events such as these will continue to occur. Therefore, the City continues to lead efforts to proactively address the ongoing and escalating impacts of climate change on our region that increase the likelihood and severity of these natural disasters. Taking measures such as hardening critical infrastructure against energy outages and wildfire threats, creating resilience centers to provide essential resources and information to community members during disasters, and working diligently to mitigate factors that contribute to climate change as well as to adapt to the changes that are already occurring are several ways in which the City is protecting the community.
Though no two disasters are alike, the City of Santa Barbara is committed to remaining vigilant and ensuring that we learn and adapt from every emergency the City responds to in an effort to continuously improve systems, essential services, and communication as well as continue to take action to lessen the impacts of climate change on the community.
PREPARED BY: Barbara Andersen, Senior Assistant to the City Administrator SUBMITTED BY: Sarah Knecht, Interim City Administrator
APPROVED BY: City Administrator’s Office
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Annual Presentation from Visit Santa Barbara
RECOMMENDATION:
That Council receive a presentation from Visit Santa Barbara.
DISCUSSION:
Pursuant to the Streets and Highways Code § 36650, the City Council will receive a presentation from Visit Santa Barbara as part of their annual report requirement for the Santa Barbara South Coast Tourism Improvement District. The report will provide a look back on the Fiscal Year 2023 industry performance and a look ahead to Visit Santa Barbara’s sales and marketing plan.
ATTACHMENT: Santa Barbara South Coast Tourism Business Improvement District Annual Report for Fiscal Year 2024
PREPARED BY: Brandon Beaudette, Senior Assistant to the City Administrator SUBMITTED BY: Sarah J. Knecht, Interim City Administrator APPROVED BY: City Administrator's Office
Agenda Item No. 15
File Code No. 180.02
Santa Barbara South Coast Tourism Business Improvement District 2016 – 2017 Annual Report
Santa Barbara South Coast Tourism Business Improvement District Submitted to the City of Santa Barbara pursuant to Streets and Highways Code section 36650 For July 2023 – June 2024
Annual Report
Attachment
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 2
Contents
Boundaries....................................................................................................................................... 4 Accomplishments............................................................................................................................ 6 Improvements and Activities......................................................................................................... 23 Cost of Activities............................................................................................................................ 26 FY23/24 (July 2023 – June 2024) Estimated Collections........................................................... 26 Surplus / Deficit............................................................................................................................. 27 Contributions................................................................................................................................. 27 Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 3
Executive Summary
Dear Partners, Stakeholders and Community Members,
The allure of the Santa Barbara South Coast will never cease to mesmerize those who set foot here. Thanks to Visit Santa Barbara (VSB)’s proactive approach in narrating the destination’s tale, we’ve overcome recent challenges, emerging more vibrant than before.
The following 2023-2024 Annual Report is a testament to the remarkable accomplishments of the VSB team, achieved through the unwavering support and active engagement of our stakeholders and partners. Data-driven strategies laid the foundation for this past year’s success, further solidifying the organization’s impact within the community.
Through strategic marketing efforts, our brand advertising campaign garnered over 376 million impressions and over 24 million completed video views. Our official destination website set new records, outperforming all past benchmarks, with a notable 8% rise in referrals to our partner businesses.
Through targeted pitching and media engagement, the PR team generated over 1,000 stories and organized press visits for an impressive 95 vetted journalists. Media highlights included destination and hotel features in Forbes, Cosmopolitan, Thrillist, LA Weekly, DuJour, Penta and others.
The group sales department seized the resurgence in demand for extended bookings, securing an outstanding 23,000 room nights contracted by Santa Barbara South Coast hotels.
Familiarization (FAM) tours and webinars were pivotal in enlightening travel advisors; at this year’s IPW in San Antonio, the team accomplished 112 client meetings alone.
Finally, the revamp of popular member events, including I Am Santa Barbara hospitality trainings, Lunch and Learn sessions and the introduction of Meet and Mingle member networking events increased our collaboration within the community and served to inspire partner businesses to increase their engagement within the destination.
We look forward to another successful year ahead!
Gratefully yours,
Kathy Janega-Dykes
President/CEO
Visit Santa Barbara
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 4
Boundaries
No changes to the Santa Barbara South Coast Tourism Business Improvement District (SBSCTBID) boundaries are proposed. Three (3) new lodging businesses have open and are now subject to assessment, two (2) lodging businesses have changed names, and one (1) lodging business has closed:
New Lodging Businesses:
- Courtyard by Marriott Santa Barbara Downtown (re-opened): 1601 State St, Santa Barbara, CA 93101
- Drift Santa Barbara: 524 State St, Santa Barbara, CA 93101 - ITH Santa Barbara Beach Hostel: 134 Chapala St, Santa Barbara, CA 93101 Lodging Businesses with Changed Names:
- Hotel Virginia Santa Barbara, Tapestry Collection (formerly Holiday Inn Express): 17 W Haley St, Santa Barbara, CA 93101
- The Steward, Santa Barbara, a Tribute Portfolio Hotel (formerly Pacifica Suites): 5490 Hollister Ave, Santa Barbara, CA 93111
Closed Lodging Business:
- Super 8 by Wyndham Santa Barbara/Goleta: 6021 Hollister Ave, Goleta, CA 93117 The SBSCTBID continues to encompass all territory within the boundaries of cities of Santa Barbara and Goleta, and portions of unincorporated southern Santa Barbara County. In connection with the SBSCTBID, an assessment is levied against all lodging businesses, including both existing lodging businesses and lodging businesses that open during the existence of the SBSCTBID.
Lodging business means: any structure, or any portion of any structure, which is occupied or intended for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes and hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. As used herein, the term “transient” means: any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a lodging business will be deemed a transient until the period of thirty (30) days has expired unless there is an agreement in writing between the lodging business operator and the occupant providing for a longer period of occupancy; provided that the occupant of an apartment unit, constructed under a building permit as such, or in building which have been legally converted into apartments, will not be deemed to be a transient if his or her occupancy is for a period of more than thirty (30) days and with or without such written agreement.
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report5
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 6
Accomplishments
For Fiscal Year 22/23, the SBSCTBID aimed to drive room night sales with four strategiespositioning, amplifying the Santa Barbara brand, and to grow overnight demand for the destination, championing positive visitor experiences, and membership. The following is summary of the activities of the SBSCTBID for fiscal year 22/23.
1. STRATEGY ONE: POSITION AND AMPLIFY THE SANTA BARBARA BRAND TO
TARGET MARKETS
MARKETING
“The Santa Barbara Effect” Advertising Campaign
VSB successfully navigated a competitive landscape for travel advertising, adapting to changes in consumer behavior and unfavorable weather throughout the winter and spring season. VSB used these obstacles to refine its brand campaign messaging, staying relevant to the post-pandemic traveler by leveraging “The Santa Barbara Effect” in new and authentic ways. This refreshed concept emphasized the abundance of quintessential vacation luxuries available in the Santa Barbara South Coast, offering relaxing and re-energizing experiences from start to finish.
A record advertising budget allowed VSB to amplify awareness of Santa Barbara and boost overnight visitation from California and Arizona, Colorado, Idaho, Illinois, Minnesota, Montana, Nevada, New York, Texas, Utah, Oregon, Washington and Washington D.C. Audience selection was data-driven and focused on potential travelers residing in ZIP codes with a proven propensity for traveling to the region’s hotels.
VSB’s paid media strategy utilized platforms such as Facebook, Instagram, Pinterest, TikTok, YouTube and Google. These digital channels were chosen for their hypertargeting capabilities, allowing for flexible adjustments based on seasonal ad performance.
Throughout the year, VSB masterfully employed its brand pillars–outdoor recreation, culinary, wine, arts and culture, wellness and the Santa Barbara lifestyle–to allure and inspire potential visitors. The brand campaign’s videos showcased the emotion and beauty of the Santa Barbara South Coast. Accompanying long-form website content provided valuable destination information and booking resources for trip planning.
Additional print advertising was placed in high-profile magazines such as San Francisco Magazine, Silicon Valley Magazine, Westways, Hemispheres, San Diego Magazine and Visit California’s Road Trips Guide.
VSB’s paid advertising exceeded the performance outlined in the 2022-2023 Annual Business Plan in order to increase awareness and facilitate trip planning to Santa Barbara.
Brand Advertising
Ad Impressions 376,395,305
Ad Clicks 2,954,447
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 7
Completed Video
Views
24,646,521
TBID Co-Op Advertising Campaign
To further enhance the awareness and reach of the Santa Barbara South Coast and its diverse lodging offerings, VSB developed a targeted co-op advertising program, available exclusively for TBID lodging properties. TBID properties were offered discounted advertising opportunities with pre-vetted, third-party publications and VSB-owned channels. These thoughtfully selected placements focused on reaching high-value travelers within VSB’s target in- and out-of-state markets. Advertising opportunities included dedicated newsletter placements with Dunhill Travel Deals, Luxury Link, Shermans Travel, Sunset Magazine and Visit California. Additionally, Virtuoso hotel partners were given the opportunity to buy a full-page ad in Virtuoso’s Travel Themed Catalog, as well as digital programming on Virtuoso.com.
This campaign provided new and meaningful opportunities for lodging partners to take advantage of VSB’s marketing expertise and media buying power. As a result of these efforts, this dedicated campaign successfully delivered low-cost referrals to lodging websites, ranging from luxury to budget.
Brand Advertising- TBID Co-Op
Ad Impressions 4,371,311
Ad Clicks 15,243
Air Service Campaign
To promote nonstop flights to Santa Barbara from Sacramento and Chicago, VSB joined forces with Southwest Airlines® and United® to launch a paid social media campaign aimed at raising awareness of Santa Barbara and encouraging bookings for travel during the 2022 summer season.
What set this campaign apart was the overwhelmingly positive response from the audience, with travelers expressing their genuine affection for Santa Barbara and their excitement around the newfound convenience of traveling to The American Riviera®.
Air Service Advertising
Ad Impressions 4,388,592
Ad Clicks 23,004
2023 Santa Barbara Visitors Magazine & Direct Response Campaign VSB unveiled a revitalized edition of the Santa Barbara Visitors Magazine, underscored by a contemporary redesign and vibrant imagery for a reader-friendly experience.
Across 124 pages, the highlights of this year’s magazine included: neighborhood overviews, signature events, thrilling outdoor excursions, ways to achieve wellness and the latest mouth-watering restaurants across the Santa Barbara South Coast. With 70,000 copies, the magazine’s circulation reached key fly and drive markets while serving as a an essential tool in showcasing Santa Barbara’s irresistible charm to prospective travelers to the destination. Locally, visitors had access to the publication at strategically placed, high-volume tourist hubs, including the Santa Barbara Airport and Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 8
multiple visitors centers. The annual publication was launched in April and will continue to be distributed through June 2024. To further extend reach to potential travelers, a paid media strategy across Facebook, Visit California and National Park Trips–Yosemite Edition was deployed to ensure the guide was delivered to travelers inspired to plan their next getaway to The American Riviera®.
Direct Response
Ad Impressions 1,134,952
Magazines Mailed 5,923
Lead Generation
To inspire wanderlust and entice travelers to explore the wonders of the Santa Barbara South Coast, VSB deployed a lead generation campaign that encouraged audiences to register for the bimonthly consumer newsletter: a gateway to what’s new and exciting within the destination.
Lead Generation
Ad Impressions 802,183
Leads Generated 6,163
VISUAL ASSETS & PRODUCTION
VSB embarked on several exciting projects, all designed to showcase the beauty and diversity of the Santa Barbara South Coast. In July 2022, a five-day video and photoshoot took place, capturing new visual assets that depicted a wide range of destination activities and traveler profiles. The production team explored 28 locations, highlighting unique experiences in Goleta, Summerland and more, while featuring three different target demographics: families, millennials and seniors.
In October 2022, VSB undertook a supplemental production, visiting eight locations over two days, with a focus on fall activities in the downtown Santa Barbara and waterfront area. The objective was to cultivate a year-round visual library of the Santa Barbara South Coast, enabling travelers to appreciate the destination’s allure during non-peak summer months. The new creative assets emerged as a source of inspiration for visitors, encouraging them to explore Santa Barbara outside the traditional tourist season.
Most notably, VSB kicked off a multi-year project to capture photo and video assets of signature, visitor-focused events that have a significant influence on total visitation numbers to the Santa Barbara South Coast. This year, four beloved events: the Harbor and Seafood Festival, California Wine Festival, Summer Solstice and Summer Courthouse Film Series were extensively covered and documented. By thoughtfully preplanning and gathering assets from these events, VSB can better promote future visitation around destination seasonality and timely reasons to visit.
The resulting creative assets helped to breathe new life into the region’s marketing strategy, presenting updated photography and captivating 15-, 30- and 60-second video spots. This comprehensive effort not only provided a fresh look at Santa Barbara but Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 9
also offered a warm and inviting backdrop for all travelers, inspiring them to book a truly unforgettable getaway.
SantaBarbaraCA.com
Overview
VSB’s official destination website experienced a remarkable surge this year, surpassing all previously achieved figures. This significant increase in traffic played a pivotal role in driving an unprecedented number of referrals to partner businesses, particularly within the lodging community. This notable increase in website visitors stands as a testament to the effectiveness of VSB’s collective marketing efforts in captivating and inspiring travelers to explore the Santa Barbara South Coast.
Year-over-year performance metrics include:
• 8% increase in referrals to partner businesses
• 10% increase in referrals to hotels*
• 22% increase in users
• 7% increase in pageviews
Key milestones to SantaBarbaraCA.com through strategic software updates and an enhanced user experience included:
• Significant efforts were made to ensure accessibility was a priority in content and user experience. Highlights included the publication of, “Navigating Santa Barbara in a Wheelchair,” implementation of accessible color contrast, alt text descriptions for all uploaded photos, the restructuring of existing and new article formatting, such as the implementation of easily identifiable call-toaction buttons and 2,662 web accessibility issues resolved, achieving an impressive score of nearly 80%.
• Extra measures were implemented to guarantee the visibility and accuracy of all TBID lodging properties on BookDirect, SantaBarbaraCA.com’s online booking widget.
• The ongoing optimization of Bound, a personalization content tool used to provide website visitors with dedicated content pieces based on their current location. Content highlights included:
o Timely itineraries and articles featuring a variety of trending themes o Seasonal features including signature and first-time events in the area o Strategic messaging designed for travelers in drive and flight markets • Increased frequency of automatic event loading on the website, ensuring the accurate display of newly added special events to the online calendar. • A comprehensive audit of all business listings populated to SantaBarbaraCA.com.
• The integration of a new social link icon for TikTok on business listing pages, allowing for additional referrals and exposure for businesses. *This metric includes all referrals specifically to lodging partners within the Santa Barbara South Coast.
Social Media
VSB boasts a thriving online community, with an impressive count of over 435,500 engaged followers across seven social media channels–Facebook, Instagram, TikTok, Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 10
Pinterest, YouTube and LinkedIn. The primary objective remains to spark wanderlust and provide valuable insights to travelers by sharing a dynamic mix of captivating photos, videos and stories that showcase the distinct and unique facets of the Santa Barbara South Coast.
Organic social media efforts generated over 13.9 million impressions, surpassing the previous fiscal year by an impressive 17%. Simultaneously, diligent efforts helped to maintain a positive sentiment of 19%, which was partially attributed to the beautiful weather following this past winter season and a decrease in the number of sensitive news articles. VSB successfully achieved the goal of attaining a greater than 20% positive sentiment around Santa Barbara, with the year ending with an exceptional 23% positive sentiment, accompanied by a reduction in negative sentiment to 16% and 61% neutral sentiment.
Facebook maintained its position as a front leader in driving impressions, generating an impressive count of over 7.1 million, while Instagram demonstrated consistent growth in engaged followers, ultimately reaching over 143,000 followers. 242 new posts were shared with unique content ranging from fresh itinerary-style posts, engaging reels, food recommendations, inspirational landscapes and more.
In conjunction with Instagram Reels, similar content was consistently re-produced for TikTok—adapting to the platform’s unique look and feel. Moreover, acknowledging the undeniable appeal of short-form videos on TikTok, VSB tailored content to align with the app’s fun and quick consumption nature. In an approach to TikTok, VSB combined visually captivating clips of stunning landscapes, picturesque beaches and iconic landmarks with engaging storytelling to create an authentic and memorable experience for viewers. This resulted in gaining over 2,300 new followers.
A primary focus on producing short-form video content resulted in over 18 million organic video views. Of the Reels and TikToks produced, top performance came from videos highlighting unique events, attractions and accommodations. These videos garnered the highest engagement rates–including saves and shares–indicating that users resonated with the content and were eager to share the same inspiration with fellow travelers.
Lastly, VSB established comprehensive style guidelines for Instagram video content and itinerary-based posts to ensure harmonious alignment with the Santa Barbara Effect brand identity and voice. A particularly successful strategy involved the use of cover pages on these posts, resulting in an increased number of saves and rendering them among the most cherished pieces of content.
Social Media Results
Video Views 18, 149,168
Impressions 13,941,527
Engagement 599,521
Website Referrals 244,246
Facebook Followers 248,073
Instagram Followers 143,144
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 11
Twitter Followers 34,380
Pinterest Followers 5,447
TikTok Followers 4,521
SantaBarbara.com
Paid and Organic Search Traffic
VSB’s marketing team continued to refine and optimize its content strategy to better serve inquiring travelers. By remaining up-to-date on trending themes and keeping content relevant with key search words, newly published itineraries and articles remained timely and engaging. The development of a comprehensive content calendar helped to cater to the needs of stakeholders while simultaneously addressing prevailing travel trends. At year’s end, SantaBarbaraCA.com achieved a 14% increase year-overyear in page 1 keywords on Google.
These combined efforts resulted in an impressive 57 new itineraries, with topperforming website articles including:
• Things to Do This Summer in Santa Barbara
• 11 Top-Rated Hotel Suites in Santa Barbara
• New Restaurants in Santa Barbara
• Top 6 Eco-Friendly Hotels in Santa Barbara
• 3 Days in Santa Barbara for Nature Lovers
• Antique, Vintage and Secondhand Stores in Santa Barbara Beyond new articles, the marketing team worked tirelessly to ensure accurate information was available to website visitors, resulting in 268 on-page optimizations.
Additional updates were facilitated by proactively collaborating with members and local attractions to ensure business microsites were up-to-date with current offerings, events and special offers.
The landscape for organic traffic continued to remain extremely competitive, which was reflected in a 6% drop in organic visits to SantaBarbaraCA.com. To offset this decrease, an aggressive paid search effort to mitigate lost organic traffic was deployed, generating 3,599,871 impressions and 530,296 clicks to SantaBarbaraCA.com, a 30% increase yearover-year. Additional assistance was provided through Performance Max, a sophisticated digital advertising platform that utilizes AI technology to optimize keyword targeting, ad placement, and bidding strategy to maximize conversions.
Lastly, VSB delivered 1.3 million newsletters to opt-in consumer inboxes, generating an average open rate of 48.4% and a total of 34,016 unique clicks, for an average clickthrough-rate of 2.24%.
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 12
Santa Barbara.com Engagement
Pageviews 8,343,879
Sessions 5,120,094
Users 4,230,927
Average Time on Site 1 min. 28 sec.
Bounce Rate 62%
SantaBarbara.com Goals
Referrals to Businesses 1,550,908
eNewsletters Delivered 1,364,313
Visitor Magazine Requests 8,346
eNewsletter Subscriptions
Added
3,525
Go Goleta Website & Social Media
The Santa Barbara South Coast Chamber led the Go Goleta initiative to provide travelers with insights into the unique features that make Goleta an exceptional choice for a memorable stay. VSB subsidized GoGoleta.com and its three social media accounts:
Facebook, Instagram and Twitter.
Newly redesigned as of December 2023, GoGoleta.com provided trip planners with everything they needed to know about The Good Land, acting as a one-stop-shop for hidden gems and signature festivals of this beautiful region and the tools to plan a vacation with ease.
Go Goleta’s social media accounts offered a visually rich and engaging way for visitors to digitally explore the area. Through captivating photographs, informative captions and inspiring content, visitors could experience the unique charm of Goleta, whether by visiting notable landmarks, indulging in local cuisine, or experiencing the beauty of the natural surroundings. By shining a spotlight on the area’s best-kept secrets and mustsee attractions, travelers could make the most out of their visit to this vibrant destination.
GoGoleta.com Engagement
Pageviews 53,883
Sessions 37,627
Users 33,854
Average Time on Site 48 sec.
Bounce Rate 72%
VSB Press Trips and Media Trade Shows
The press trip program supported visits from 95 journalists in the 2022-2023 fiscal year, representing 75 domestic media and 20 international media. FAMs were instrumental in providing first-hand reporting opportunities tailored to individual outlets and journalists, and led to travel coverage from national, regional and international outlets. For many Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 13
journalists, press trips were their first introduction to the destination, while returning media were exposed to new developments in the South Coast.
With Canada dropping its pandemic-era travel restrictions in October 2022, favorable conditions returned for pitching and hosting media, paving the way for seven visits from journalists ranging from Vancouver to Toronto.
Headline-making rainstorms in January and inclement weather made for a challenging spring for local hotels and attractions. To restore demand, VSB’s PR team continuously pitched stories and ramped up press visits, with 14 FAMs in March alone. VSB also partnered on individual and group press trips initiated by area businesses, such as hotels and restaurants, as well as Visit California, amplifying its PR efforts with destination experiences and South Coast perspectives.
PR director Karna Hughes hit the road to network with top-tier media and showcase the destination at out-of-market media trade shows throughout the year. Events included International Media Marketplace in New York, IPW in San Antonio, Visit California’s media receptions in San Francisco and Los Angeles, as well as Visit California media missions to the U.K. and Canada.
Public Relations Results
Online Unique Visitors per
Month
9,757,597,203
Print Circulation &
Broadcast Impressions
33,365,312
Media Placements (NonLocals Only)1,013
Media Familiarization Tours 95
Media Events 6
What the Media Are Saying
“Two hours—and a world away—from L.A., the laid-back city is the jewel of the Central Coast.” DuJour, April 2023
“From the moment you take a breath of fresh salty air or stroll storied State Street, you’ll understand why it’s often referred to as the American Riviera. … Anyone who enjoys nature and fine food and wine in a casual setting will love Santa Barbara.” TravelAwaits, April 2023
“In Santa Barbara, there’s a whole world of unexpected attractions just perfect for a second, third, or fifteenth visit.” Tripadvisor, May 2023 “The mile-long newly dubbed State Street Promenade feels like Santa Barbara’s answer to Barcelona’s La Rambla: a lively pedestrian thoroughfare with shops, restaurants, and outdoor dining.” Westways, May 2023
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“With a historical background of lemon orchards (memorialized in the annual Goleta Lemon Festival with a pie-eating contest), today in Goleta you’ll find craft breweries, free livemusic at a historical ranch, and even an old-time fiddlers’ festival.” Time Out, June 2023.
National Media Highlights
• Shermans Travel named Santa Barbara one of “The Best Smart Luxury Destinations for 2023” (368,000Unique Viewers per Month (UVM)). • In two separate destination features, Forbes explored several of the South Coast’s “best” hotels and top-tierrestaurants, calling Santa Barbara “Southern California’s top destination for a gourmand getaway” (124 millionUVM). • Penta, Barron’s luxury outlet deemed the South Coast “one of the most dynamic and attractive destinations onthe American West Coast” in a dedicated travel feature (2.64 million UVM).
• DuJour Online delved into the region’s hotels, restaurants, wineries and shops in a “Weekender” travel feature,which is expected to run again in print in late 2023 (64,300 UVM).
• Cosmopolitan Online brought a playful perspective to its South Coast hotels story, “Yes, Bestie, Your NextTrip *Should* Be to Santa Barbara,” as well as social media posts and Instagram Reels (48 million UVM). • Thrillist writers extolled the region’s charms in several stories, including an updated Santa Barbara guide(which also ran on MSN, 64.5 million UVM), “The 20 Greatest Beach Towns in America,” “What to do inCalifornia When it’s Raining,” plus “best” California spas and bird-watching road trip pieces (7 million UVM).
• Popular travel site Johnny Jet provided an exhaustive look at the South Coast’s hidden gems, from restaurantsand hotels to downtown attractions (387,000 UVM).
• Time Out celebrated Goleta as one of the “10 most underrated beach towns in America” in a story that waspicked up by more than a dozen outlets. It also included Santa Barbara as one of “10 best wine vacations in theU.S.” (27.2 million UVM).
• Nerdwallet named Santa Barbara Airport one of “America’s Most Charming Airports” in a story that waspicked up by 466 other outlets across the U.S., including SF Weekly, San Francisco Examiner, Napa ValleyRegister, The Oakland Press, The Denver Post, Arizona Daily Star and Boston Herald (21.2 million UVM).
• Naturally, Danny Seo ran a six-page feature on Summerland shopping experiences, calling out the town’swalkability and unique treasures (350,000 print circulation).
• TripSavvy took a closer look at “13 Best Beaches in Santa Barbara, California.” A separate story namedMontecito one of “18 Best Beach Towns in the U.S.” (5.2 million UVM).
• Matador Network explored “Fun, Outdoorsy, and Educational Things to do with Kids in Santa Barbara”and in a separate feature, got to the bottom (pun intended) of Santa Barbara’s beer scene (2.1 millionUVM).
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 15
• AFAR Online recognized Santa Barbara as one of “8 Best Destinations for Your Next Winter Getaway,”as well as one of California’s best wine regions (1.9 million UVM).
• Good Housekeeping Online heralded Santa Barbara as a tempting place to travel in December, at thebeginning of summer and as a family vacation destination (56 million UVM).
• TravelAwaits shined the spotlight on Santa Barbara in separate features on wellness and “fabulous thingsto do” (3 million UVM).
• Bon Traveler published stories throughout the year mentioning Santa Barbara, including top restaurantsin the region, California family getaways, slow road trips, and “best” things to do in Santa Barbara (99,000UVM).
Regional and International Media Highlights
• In a cover story, LA Weekly explored the allure of Santa Barbara, with its plentiful outdoor spaces, theState Street Promenade, museums, festivals and more (90,000 print, 1.5 million UVM).
• Los Angeles Times explored “What to do, see and eat in California’s nine best college towns,” throughthe lens of local insiders (532,000 print, 12 million UVM).
• Beverly Hills Courier recommended Santa Barbara as a late summer getaway, mentioning Stearns Wharf’s 150th anniversary, plus new eateries and attractions (40,000 print and 36,000 UVM).
• San Diego Magazine shone a spotlight on Santa Barbara culinary experiences for May travelers (54,000 print).
• Westways named State Street one of 23 “great getaways in Southern California and beyond” becauseof the new State Street Promenade (5 million print; 10 million UVM). The AAA website includedOld Spanish Days Fiesta among “fun things to do in Southern California” (10 million UVM).
• M Magazine, a regional publication reaching Silicon Valley and the East Bay, shared where to stay,eat, and what to do in its Santa Barbara winter getaway story (125,000 print).
• In a dedicated travel guide, SFGate showcased the South Coast’s range of hotel options, frombudget-friendly to luxe, including VSB’s “Third Night Free” promotion. A separate guide describedwhy Santa Barbara is an ideal wellness destination (35.4 million UVM).
• A two-page travel feature in Diablo Magazine explored how to spend “One Fine Weekend in SantaBarbara” including Southwest Airlines’ nonstop flight from Oakland. Appearing in print and onlineeditions, it reached an affluent East Bay readership (40,000 print, 27,000 UVM).
• D Magazine described Santa Barbara as a “refreshing escape” for Dallas residents in a lengthyfeature praising the area’s lodging, wine scene, architecture and other attractions (770,000 UVM).
• Metrosource, a bimonthly lifestyle magazine geared toward the LGBTQ community, educatedreaders on Santa Barbara’s unique history, architecture and what to do today in a four-page feature(128,000 print).
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 16
• New York Sun published a love letter to The American Riviera® in a travel feature with detailedculinary notes and unique historical insights. The Sun also ran a separate story on Montecito (450,000UVM).
• New York Observer Online named Santa Barbara one of “The 5 Best Weekend Getaways fromLA” (1.3 million UVM).
• The Beacon Newspapers, an East Coast monthly publication for seniors, showcased areabusinesses and attractions in a travel piece, “Mellowing Out in Santa Barbara” (550,000 print, 8,000UVM). It also made an appearance on the website Active Over 50 and e-newsletter The AdventureGeezer, reaching San Francisco readers (200,000 UVM).
• A syndicated Postmedia travel story on the Central Coast showcased eclectic activities in SantaBarbara, from biking and roller skating to painting with wine. It was picked up by 116 Canadianoutlets, including the National Post, Vancouver Sun, Montreal Gazette and Edmonton Journal (1.5million print, 3.3 million UVM cumulative).
• MoneyWise, a popular Postmedia column, highlighted VSB’s “Third Night Free” promotion andarea attractions in a round-up on seasonal travel deals. It was picked up by 20 Canadian websites,from MSN Canada to Toronto Sun and Calgary Herald (80 million UVM cumulative).
• In a four-page travel story, 7 Jours, a popular weekly magazine from Montreal, focused onMontecito and Santa Barbara’s celebrity appeal, describing the stars’ favorite haunts, from hotels torestaurants (502,000 print).
Throughout the year, VSB’s PR team pitched the “Third Night Free” and “Retreat & Restore with 25% Off” lodging promotions, which led to coverage in outlets including Thrillist (6.9 million UVM), The Knot Online (2.5 million UVM), NBC Los Angeles Online (1.3 million UVM), Tinybeans (785,000 UVM), Johnny Jet (442,000 UVM), TravelPulse (327,000 UVM), Islands Magazine Online (162,000 UVM), Clark Deals (256,000 UVM), Heat Magazine (U.K., 113,000 print), Travelweek Online (Canada, 70,000 UVM), Diablo Magazine (40,000 print, 27,000 UVM) and in a syndicated Postmedia story across Canada (see above), among others.
2. STRATEGY TWO: GROW OVERNIGHT DEMAND FOR THE DESTINATION
GROUP SALES
The past year represented record breaking performance from the group sales team. An impressive 23,000 group room nights were sold, marking a significant 34% increase from the previous year. Additionally, 21,000 group room nights were held, a 22% increase when adjusted for factors such as “Love Island” and UCSB student housing. Looking ahead to the 2023-2024 fiscal year, 15,000 room nights have already been sold, showcasing strong demand and representing 72% of VSB’s goals for total room nights booked in the next 12 months. With long term bookings making a comeback this past fiscal year, the team has seen an impressive 172% increase, which reflects a return to pre-COVID normalcy and comfort zones for group planners. Interestingly, despite the substantial growth in group sales performance, the program budget experienced a more modest 18% increase year-over-year. This indicates that the group sales team managed Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 17
to outpace budget growth by efficiently maximizing resources, minimizing acquisition costs and maintaining high productivity and efficiency as a team.
Site Tours and Client Meetings
Throughout the year, the group sales team was highly active in cultivating relationships with hotel partners and engaging with clients through different partner events. Partner client events included a Del Mar nail salon visit, dinner in Denver, a charter cruise on the Sacramento Brew Boat, a private suite experience at Top Golf El Segundo and a centerpiece creation class at Roger’s Gardens in Orange County. Additional sales missions, in partnership with Visit California, included events where the Santa Barbara story was showcased to planners in Austin, Dallas, Denver and Seattle. The sales team also hosted two extensive in-market FAM trips, the first for a top producing team from ConferenceDirect and the second for a group of key incentive buyers from the Midwest.
Trade Shows
Third-party trade shows proved to be an excellent source for establishing new business contacts. The VSB sales team once again showcased its expertise at esteemed annual events such as IMEX, CALSAE, Destination California and MPI NCC. The team participated in new shows in order to uncover fresh leads and develop relationships with planners from untested markets. These additional shows included MPI Cascadia, AMEX Interaction, Prestige Partner Conference, Lamont Partner Showcase and the SITE Southeast Incentive Conference Experience. By staying actively engaged with an array of diverse industry events, the sales team effectively broadened its reach and strengthened VSB’s connection with the professional community, solidifying the position as a premier destination for planners and clients alike.
Industry Events and Affiliations
One key strategy that has proven successful time and time again is the sales team’s active participation in DMO Alliances. Each sales manager had a focus in either Southern California, Northern California or the Chicago and Midwest regions, working to create opportunities through networking and client events in partnership with other sales representatives from California destinations. Furthermore, VSB made strategic investments in sponsorships with Prestige, HPN, Lamont, HelmsBriscoe, CALSAE and MPI, increasing the exposure of the sales team among prominent meeting planners.
TRAVEL TRADE SALES
Educating the Travel Trade
FAM tours and webinars served as the primary tools for educating travel advisors and ensuring they were well-informed of the Santa Barbara South Coast’s exceptional offerings. Through a partnership with Virtuoso, VSB created an Immersion Program consisting of a Web15 training platform containing multiple training chapters and videos, which travel advisors could access and view on their own time. The program also included two 30-minute live webinars, “Santa Barbara South Coast Wine Experiences” and “Santa Barbara Outdoor Adventures.”
VSB had the privilege of presenting the destination along with other California destinations as part of Visit California’s partnership with Virtuoso, with additional training webinars shown to the National Tour Association and Adventure Travel Trade Association. Throughout the year, multiple groups of esteemed travel advisors visited Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 18
the Santa Barbara South Coast to gain firsthand knowledge and experience. Notable clients who participated in FAMs included industry leaders such as Audley Travel, Virgin Holidays, Lusso Travel and a post-FAM from Virtuoso On Tour Toronto.
Trade Shows
VSB had a significant presence at this year’s IPW in San Antonio, where hotel partners joined the sales team to complete over 112 client appointments as well as participate in multiple networking events. Additionally, VSB took part in the annual Cal Cup multi-day golf event with key owners and executives from international tour operators. Other travel trade shows this year included ILTM North America, Signature Travel Network, Ultra Luxury Summit, Connections Luxury Forum and TravPro’s Luxury Expo, all of which included scheduled appointments with travel advisors as well as networking opportunities.
Making Connections
VSB partnered with Visit Greater Palm Springs to organize two exceptional travel advisor client events, one in Sacramento and the other in San Francisco. In addition to client events, VSB’s dedicated travel trade team actively pursued several air service development projects. These projects included hosting a reception for the Alaska Airlines executive team, assisting with the Alaska Airlines community relations team and attending the Jumpstart Conference alongside representatives from Santa Barbara Airport.
“Third Night Free” Lodging Promotion
VSB’s “Third Night Free” promotion achieved remarkable growth in driving incremental, non-commissioned bookings directly to lodging partners. The campaign saw an impressive 19% increase in referrals and 29% increase in consumed room nights.
Twenty-eight properties participated across the luxury, mid-tier and economy categories offering one free night on a three-night stay as well as other hotel offers and discounts designed to increase the length of stay within the destination. VSB executed a robust advertising plan consisting of paid consumer emails, paid social media and dedicated content through VSB’s owned channels (website, email and social media). In addition, the VSB public relations team was able to secure editorial coverage to further support the promotion.
An expanded series of dedicated third-party emails through Travelzoo, Dunhill Travel Deals, Luxury Link and Shermans Travel garnered incredible results. The dedicated emails promoting the offers were sent to over 42 million opt-in subscribers across the U.S., with efforts focused on reaching audiences in Northern and Southern California, Phoenix, Denver, Seattle and Portland. Over 107,712 referrals were sent to participating hotels.
An ongoing paid social media strategy ensured that a steady stream of media drove quality referrals to participating hotel properties. Through a series of dynamic ads targeted to pre- qualified English and Spanish-speaking audiences within key drive and fly markets, Facebook and Instagram advertising drove a total of 40,992 partner referrals. This metric is especially impressive as overall paid social advertising costs saw Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 19
significant increases and fluctuation throughout the year. The team remained vigilant, optimizing ads regularly to achieve the lowest ad costs possible.
Campaign Results
Paid Media Impression 73,340,201
Paid Media Clicks 511,390
Total Partner Referrals 198,437
Referrals from All Paid Media Sources 153,824
Room Nights Consumed 12,119
ADVERTISING
“Retreat & Restore with 25% Off ”
In addition to “Third Night Free,” VSB launched a secondary lodging promotion in the fall to test fresh messaging and time sensitive discounted lodging offers. Designed to drive immediate bookings over the course of a seven-day booking window, “Retreat & Restore with 25% Off ” incentivised audiences with a discounted stay that could be applied to stays one, two or three plus nights.
A series of dedicated consumer emails were deployed through trusted media partners– Travelzoo, Dunhill Travel Deals, Luxury Link and LA Times–all geared towards capturing pre-qualified travelers within California. Digital ads through Facebook and Google reached audiences in California, in addition to recovering the attention of past website visitors to SantaBarbaraCA.com. Unique to this lodging promotion, local advertising was purchased to stimulate staycations and inspire friends and family visiting for the holiday season to take advantage of the discount. Local media partners included The Santa Barbara Independent and Noozhawk.
3. STRATEGY THREE: CHAMPION POSITIVE VISITOR EXPERIENCES
WORKFORCE DEVELOPMENT
Hospitality Inspiration Campaign
VSB collaborated with the Santa Barbara South Coast Chamber on the Hospitality Inspiration Campaign, aimed to attract and retain employees in the hospitality industry by showcasing success stories of local service workers. The paid advertisements included OTT (streaming), cross-device display, digital online and social media videos (Facebook and Instagram) in both English and Spanish. The campaign directed interested individuals to the Hospitality Inspiration Campaign website which featured motivational stories and a list of current hospitality job openings in the area. The advertising efforts resulted in 4,255,370 impressions across all digital channels and the campaign website received over 114,535 pageviews.
Career Fairs
To address the staffing needs of local hospitality businesses and enhance visitor experiences on the Santa Barbara South Coast, VSB consistently prioritized workforce development. In October, VSB hosted a career fair as part of a series aimed at connecting job seekers with businesses offering hospitality-related positions.
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 20
Approximately 20 businesses participated, with the fair attracting job seekers through digital, social and radio advertising, and several attendees were even offered on-site interviews. VSB also partnered with several local organizations participating in the State Street Job Fairs held in April and September. Both events showcased nearly 150 local businesses seeking to hire staff across a range of positions—from entry-level to upper management. The job fairs saw a significant turnout, with an estimated 1,400 job seekers in total attending.
UCSB Extension Hospitality Program
VSB worked in partnership with the UCSB Extension program to provide guidance in the development of a new hospitality-focused curriculum and certification. The primary goal was to inspire and encourage students
to pursue careers in the hospitality field. The new certification program encompassed three tiers for entrylevel, mid-management and senior management positions. The program launched its first one-day boot camp
during the Spring quarter and by the close of 2023, UCSB will offer the full hospitality certificate for the midand managerial level professional courses.
FRONTLINE HOSPITALITY TRAINING
VSB reintroduced the highly popular I Am Santa Barbara ambassador training program, which is now offered on a monthly basis free of charge for frontline hospitality staff. The program aims to empower and educate Santa Barbara businesses and their employees about the destination and its offerings. The 60-minute training covers various topics including tourism’s impact, local history and architecture, an overview of destination offerings, hospitality services and how to handle sensitive topics. Upon completion of the course, attendees received an official certificate and had the opportunity to win prizes including free passes for attractions, museums, tours and wineries. Since its relaunch, 168 hospitality workers have attended the training and become certified as Santa Barbara Ambassadors. Feedback from attendees was overwhelmingly positive, with several comments highlighting the course’s benefits, including its relevance for front desk agents and concierge teams, its thoroughness and the enjoyable experience facilitated by the training team.
COMMUNITY EVENTS
As part of its dedication to the Santa Barbara South Coast community, VSB sponsored a range of local events throughout the year including the Goleta Lemon Festival, Santa Barbara Culinary Experience, Stearns Wharf 150th Anniversary, UCSB Alumni Weekend, World of Pinot Noir and Pianos on State Street. In addition to financial sponsorship, VSB provided invaluable in-kind marketing support for these and many other local events and festivals through owned channels, including SantaBarbaraCA.com, social media platforms, consumer e-newsletters and public relations outreach. By leveraging these channels, VSB aimed to generate increased interest and attract more attendees to these events, further enhancing their success and impact within the community.
In September, VSB participated in the third annual Hospitality Summer Games, an exciting Olympicsstyle competition featuring a range of teambuilding events aimed at promoting the Santa Barbara destination. The event successfully Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 21
showcased the strong camaraderie within the local hospitality community and served as a fun platform for boosting employee morale. The challenges included engaging activities such as cake wars, bike building, bed making, golf putting, a server obstacle course and a captivating talent competition. Furthermore, the participating organizations generously contributed raffle items, and the proceeds were donated to support the culinary program at Santa Barbara City College. As part of the event’s charitable efforts, seven bicycles were also donated to the local chapter of the Boys & Girls Club.
4. STRATEGY FOUR: MEMBERSHIP
MEMBERSHIP
This year, VSB established a dedicated community partnerships department with the aim of enhancing current relationships and fostering new partnerships with members, stakeholders, local hospitality businesses and the community at large. The department actively engaged with VSB members and the community through a diverse range of events, including member gatherings, training sessions, seminars and educational classes. The team strengthened existing relationships while actively seeking out new partnerships and collaborations. Another notable addition this year was the introduction of a monthly industry e-newsletter, providing valuable updates and beneficial information to the industry.
MEMBER EVENTS
Tourism Summit
The picturesque Cabrillo Pavilion served as the venue for VSB’s annual Tourism Summit held in January. The summit provided a platform for sharing valuable insights and updates on VSB’s marketing, sales and community partnership programs, all aimed at supporting the Santa Barbara South Coast travel industry. Attendees learned about the current travel climate and future travel trends. Clayton Reid, CEO of MMGY Global and a renowned expert in travel marketing, delivered the keynote address. He discussed the dynamic nature of travel conditions, their impact on future travel behaviors and innovative approaches to reaching visitors. The event’s 172 attendees included VSB members, professionals from the Santa Barbara County hospitality industry, local press and community leaders as well as city and county officials.
Annual General Meeting
In May, as part of the National Travel and Tourism Week celebration, VSB held its Annual General Meeting with a special focus on enhancing the destination’s accessibility for all visitors, particularly those with disabilities. Held at Santa Barbara Zoo, Victoria Strong, founder and executive director of the Gwendolyn Strong Foundation, and John Sage, CEO of Accessible Travel Solutions, delivered insightful presentations centered around accessibility. Afterwards, attendees explored local accessibility resources from the Gwendolyn Strong Foundation, PathPoint, Autism Embrace, NatureTrack and Alpha Resource Center. The event attracted over 200 guests, including VSB members, city and county officials and community leaders. This robust attendance demonstrated the collective commitment within the tourism industry to making the destination accessible for all visitors.
Lunch and Learn Series
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VSB reintroduced the highly anticipated Lunch and Learn monthly series, offering a wide range of topics to members. These complementary events provided valuable learning opportunities while also serving as a platform for networking and connecting with other businesses. Sessions delved into various subjects, including emerging social media platforms, travel trade, air service development, hotel performance data, the waterfront cruise ship program, graphic design/branding and cooperative opportunities.
To conclude the series, a fun and interactive wine seminar was held in collaboration with the Santa Barbara Vintners and Margerum Wine Company.
Participants expressed gratitude for the organization and professionalism of the events, highlighting the valuable content and networking opportunities provided. The Lunch and Learn events garnered 162 total attendees across the 10 sessions.
Sales
Meet and Mingle Events
VSB introduced a new series of quarterly Meet and Mingle member networking events aimed at creating an engaging environment where attendees could foster connections, share insights and strengthen partnerships. The inaugural event took place aboard Celebration Cruises’ Azure Seas, offering a picturesque setting on the water. In March, M. Special hosted in downtown Santa Barbara, and the event featured Santa Barbarathemed trivia inspired by the I Am Santa Barbara training. In June, attendees played a fun and interactive bingo game at Samsara Wine Company tasting room in Goleta. Over 70 members attended across the three events, with opportunities at each to win prizes and experiences generously donated by VSB members. These contributions from VSB members added an extra element of appreciation and demonstrated the strong support and collaboration within the local business community.
VISIT CALIFORNIA DESTINATION MIXER
In June 2023, VSB exhibited at the Visit California Central Coast Destination Mixer held in Sacramento. During the event, they had the opportunity to pitch the Santa Barbara South Coast to over 75 VCA staff and agency partners. Santa Barbara was chosen as one of five featured central coast destinations, allowing the team to highlight the unique experiences and attractions available to visitors.
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 23
Improvements and Activities
The improvements and activities to be provided for FY 22/23 are consistent with the Management District Plan. There are no proposed changes.
DESTINATION MARKETING, SALES, AND DESTINATION IMPROVEMENT PROGRAMS Develop an annual destination marketing, sales and management programs strategy to generate demand for the assessed businesses targeting leisure, meetings and events. Develop marketing programs to attract overnight visitors. The destination marketing, sales and management programs may include, with limitation, the following activities:
Marketing & Public Relations
Marketing promotes Santa Barbara South Coast lodging businesses through paid media including digital and print. This includes paid brand marketing campaigns, retail promotions that highlight special offers, co-op marketing campaigns between VSB and local lodging businesses, air carriers that service Santa Barbara and/or tour operators that promote Santa Barbara, and direct response marketing that generate requests for visitor magazines and email newsletter subscriptions.
Content marketing amplifies lodging businesses through storytelling on owned media channels including SantaBarbaraCA.com, social media accounts, consumer databases and third-party websites. This includes the production of our website, visitor magazine, social media content and community management, consumer newsletters and cooperative partnerships.
Public relations generate earned media coverage that excites and inspires travelers to choose the Santa Barbara South Coast over other competing destinations, while elevating lodging business awareness and reinforcing key motivators for overnight travel to the Santa Barbara South Coast.
The marketing and public relations program will build greater awareness of assessed lodging businesses in an effort to drive room night sales. The following list includes examples of the marketing and public relations activities that may be provided:
Hosting journalist familiarization trips, bringing key media influencers in-market to experience the Santa Barbara South Coast first-hand in an effort to generate overnight visitation and room sales to assessed businesses.
Managing SantaBarbaraCA.com and Visit Santa Barbara social media channels to showcase the breadth of reasons to visit the destination to generate overnight visitation and room sales to assessed businesses.
Conducting research to drive overnight visitation and room sales to assessed businesses.
Media programs providing targeted reach of growth markets to generate overnight visitation and room sales to assessed businesses.
Maintaining a robust library of fresh photos, videos other digital assets to be used by VSB and assessed businesses to generate overnight visitation and room sales to assessed businesses.
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 24
Local destination marketing may be used for programs which drive room night sales to assessed lodging businesses in Santa Barbara, Goleta, Montecito and/or Summerland. Programs included in this service may include content marketing via specialized websites and visitor magazines, visitor centers, and support for community events that generate overnight visitation and room sales to assessed businesses. These services do not preclude assessed businesses from the benefits conveyed through their inclusion within programs promoting the broader Santa Barbara brand. These activities may be conducted directly by VSB, or through grants from VSB to other organizations such as the Santa Barbara South Coast Chamber of Commerce, or others.
Sales
Group sales strategies convert leads to hotel contracts from clients looking to hold conferences, meetings, retreats and other programs in the Santa Barbara South Coast. Leads are converted from meeting planners in corporate, incentive, social, wedding, regional, state, and national association markets. Sales efforts are direct and indirect through research, sales call prospecting, in-person client appointments, tradeshows, organized client events, local site inspections, and destination familiarization tours. Separately, travel trade sales generate individual and group bookings through selling Santa Barbara South Coast lodging businesses to domestic and international travel agents, wholesaler operators, receptive operators, and tour operators.
The sales program will promote the Santa Barbara South Coast area as a destination and will work to attract overnight groups and individual travelers. The following list includes examples of the sales activities that may be provided:
Maintaining an experienced sales staff to target the meeting and conference market to generate overnight visitation and room sales to assessed businesses.
Maximizing alliances with professional organizations that target group business, or database services that track group opportunities to develop new leads for assessed businesses.
Incentivizing conferences and meetings to book at Santa Barbara South Coast.
Destination Improvement
In order to maximize the benefit of VSB’s marketing, public relations and sales programs, funds may be used in limited ways to increase the appeal and accessibility of the destination for overnight visitors. Such services, if budgeted by the TBID Committee and VSB Board of Directors, will focus on items that are critical to the local lodging industry. These services are not intended to supplant government services or provide direct benefit to the general public or to nonassessed businesses. Programs may include, but are not limited to:
• Visitors center operations that provide visitors with information designed to improve the visitor experience and encourage overnight visitation and future room sales to assessed businesses.
• Incentives to attract and promote new air service to increase inbound visitation and room sales to assessed businesses.
• Developing a cruise itinerary program designed to attract repeat visitation at assessed businesses.
• Local workforce development that positions the hospitality industry as an attractive career option for residents and local students. Service may include job fairs, outreach to improve vocational instruction/internships through high schools and colleges, local Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 25
marketing and public relations campaigns to encourage job seekers to consider professions in the lodging industry and relevant industry employment research. • Services to improve the visitor’s experience.
• Hospitality education and training support aimed at improving the visitor experience leading to increased demand for overnight visitation and room sales to assessed businesses.
ADMINISTRATION AND POLICY DEVELOPMENT
The administrative and operations portion of the budget will be utilized for administrative staffing costs, all office costs, board and committee meeting support, policy development, and other general administrative costs such as telecommunications, information technology, insurance, legal and accounting fees.
RESERVE/CONTINGENCY
Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund will be set by the VSB Board of Directors. Policies relating to the contributions to the reserve fund, the target amount of the reserve fund, and expenditures of monies from the reserve fund shall be set by the VSB Board. The reserve fund may also be used for the costs of renewing the TBID or debt service.
COLLECTION COSTS
The County of Santa Barbara and the City of Goleta, if they collect District assessments, will each be paid one percent (1%) of the amount collected in their respective jurisdictions to cover the costs of collection and administration. The City of Santa Barbara will be paid three percent (3%) of the amount collected to cover the costs of collection and administration. The City of Santa Barbara shall have the right to audit the SBSCTBID.
Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 26
Cost of Activities
FY 22/23 (July 2022- June 2023) Actuals
The total estimated amount collected from July 2022 to June 2023 was $9,549,847.
Expenditures for FY 2022-2023 were consistent with the categorical allocations in the Management District Plan and did not exceed the fifteen percent (15%) adjustment limitation of the total budget from the prior year.
Service 22/23 $
Destination Marketing & Promotion 85% 7,468,932
Administration & Policy
Development
13%
1,163,083
City Administration Fee 2% 197,285
Total 100% 8,829,300
FY23/24 (July 2023 – June 2024) Estimated Collections
The estimated budget for FY 2023 – 2024 is $8,833,793, with $720,547 in carryover. The estimated cost for activities by category for FY2023 – 2024 is shown in the table below. The proposed allocations are within the guidelines of the Management District Plan and do not exceed the fifteen (15%) adjustment limitation of the total budget from the prior year.
Service 23/24 $
Destination Marketing & Promotion 87% 7,657,527
Administration & Policy
Development
11%
982,186
City Administration Fee 2% 194,080
Total 100% 8,833,793
Assessment
In accordance with the SBSCTBID Management District Plan, the assessment rate is two percent (2%) of gross short term room rental revenue. The assessment rate may be subject to increases during the ten (10) year term if initiated by the TBID Committee and approved by assessees who pay more than fifty percent (50%) of the total annual assessment. If the TBID Committee wishes to increase the assessment rate, VSB shall provide a notice and ballot to assessed lodging businesses of the proposed increase. The assessment rate may be increased up to a maximum rate of three percent (3%) of gross short-term room rental revenue.
Lodging business means: any structure, or any portion of any structure, which is occupied or intended for occupancy by transients for dwelling, lodging, or sleeping purposes, and includes Santa Barbara South Coast Tourism Business Improvement District 2023-2024 Annual Report 27
and hotel, inn, tourist home or house, short term vacation rental, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. As used herein, the term “transient” means: any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a lodging business will be deemed a transient until the period of thirty (30) days has expired unless there is an agreement in writing between the lodging business operator and the occupant providing for a longer period of occupancy; provided that the occupant of an apartment unit, constructed under a building permit as such, or in building which have been legally converted into apartments, will not be deemed to be a transient if his or her occupancy is for a period of more than thirty (30) days and with or without such written agreement.
Surplus / Deficit
There are carry over fund from FY2022-2023 to FY2023-2024. The excess is $720,547.
Contributions
The SBSCTBID funds are supplemented by funding from the County, the City of Santa Barbara, and private sources. The total additional revenue to programs for FY2023-2024 is $1,452,830, as shown in the table below.
Source Amount
Federal Funds 79,122
City of Santa Barbara 1,000,000
County of Santa Barbara 75,316
Private Sources 298,392
Total 1,452,830
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and Councilmembers
FROM: City Attorney’s Office
SUBJECT: Local Housing Trust Fund [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 Santa Barbara Municipal Code by Adding Chapter 26.80 Establishing the City of Santa Barbara Local Housing Trust Fund.
DISCUSSION:
Housing Trust Funds are established by local public entities as an important tool to increase the stock of permanently affordable housing units within their respective jurisdictions. A Local Housing Trust Fund (LHTF) provides a local funding source for financial and technical assistance to help developers produce and preserve affordable housing.
Key requirements of a local housing trust fund are that a dedicated source of funding be provided for On-going Revenue for a minimum of five years to support the fund’s operations and that Matching Funds be available at the time of application to receive State funding on a dollar-for-dollar basis. The Matching Funds cannot be from a funding source that is otherwise restricted for housing uses by state or federal law such as Home Investment Partnership Program (“HIPP”), Community Development Block Grant (CDBG) programs, or former redevelopment agency low- and moderate-income housing funds.
In-lieu fees, Permanent Local Housing Allocation Funds (PHLA), taxes, and loan repayments are available sources that can be used.
An additional requirement is that the City have an adopted and State compliant Housing Element. The City’s proposed Housing Element went before the Council on December 12th and was approved. If the HCD approves the City’s Housing element and the City’s LHTF is in place, then the City would become eligible to apply for the next round of State funding in the Spring of 2024. As a new LHTF, the City would also be eligible to participate in the 15% funding set-aside for new local housing trust funds.
Agenda Item No. 16
File Code No. 660.01
Council Agenda Report
Local Housing Trust Fund [Ordinance Introduction]
January 9, 2024
Previous History
The Ordinance Committee met on June 28, 2023, to review a draft ordinance to create “The Housing Opportunities, Preservation, and Equity (HOPE) Fund.” At that meeting, the Committee asked for further information on the requirements to establish a local housing trust fund that met the requirements to qualify for Matching Funds through the California Department of Housing and Community Development (HCD). At that meeting, the City Attorney’s office requested additional time to research the requirements for formation of a local housing trust fund and return to the Committee with that information.
On September 19, 2023, the Ordinance Committee heard a presentation on the key requirements for a local housing trust ordinance. First and foremost is the requirement to have a dedicated source of funding to provide for On-going Revenue for a minimum of five years in order to support the fund’s operations. On-going Revenue may not include one-time donations, such as land donations or large bequests. Matching Funds must be on-deposit or evidenced by a legally binding commitment for deposit at the time of application and on-deposit prior to disbursement of Program Funds.
The Ordinance Committee voted unanimously to send the item to the Finance Committee to determine the funding sources for: 1) Matching Funds on a dollar-for-dollar basis available at the time of funding application, and 2) On-going Revenue for a minimum of five years to support the fund’s operation.
The Finance Committee met on October 17, 2023, to identify a dedicated source of funding for On-going Revenue and Matching Funds. The Finance Committee identified the allocation of $2,883,548.00 made by Council on December 6, 2022, to be the starting amount for Matching Funds in the new LHTF and the City’s Inclusionary Fund / In-Lieu Fees as the dedicated source for the On-going Revenue. The Finance Committee voted to return this item to the Ordinance Committee with their recommendations for review of a draft ordinance establishing the LHTF.
On December 12, 2023, the Ordinance Committie met and reviewed the proposed ordinance and made several recommendations that are incorporated into the draft before City Council today. The basis behind the recommendations is to ensure efficiency and expediency in the application and administration of funds from the LHTF. The most significant change is contained in SBMC Section 26.80.050 (a), which provides that the Community Development Director develop aapplication form to obtain funding. The applications will meet HCD requirements and follow the already existing and familiar City of Santa Barbara Affordable Housing Policies and Procedures Handbook. A list of examples of the Application requirements is provided under Attachment 1. The City will work with HCD to develop the actual application form. There will be no requirement for the submittals of a request for proposal or a NOFA application. In addition, sole approval of the disbursement of funds from any project will come from the City Council.
Council Agenda Report
Local Housing Trust Fund [Ordinance Introduction]
January 9, 2024
The LHTF Ordinance
The proposed LHTF Ordinance contains the following key provisions:
The dedicated source of funding for On-going Revenue and Matching Funds for the LHTF is the $2,883,548allocated by the City Council on December 6, 2022, from the General Fund (which was established to be used specifically for the LHTF), and Inclusionary Housing In-lieu fees collected under Municipal Code Sections, 28.43.030, 28.43.070, 28.43.130, and 30.160.070 which will serve as the dedicated and continuous source for the first five years of the Fund’s existence. In addition, the Ordinance allows for the flexibility to receive funds from other sources, which can include contributions from private individuals and entities. Funding from the LHTF will be distributed per priorities identified by the City Council to construct, acquire, rehabilitate or subsidize very low, low, and moderate income housing.
There will be a yearly report from City staff to the City Council based off of the required HCD annual report which contains the information such as revenues collected, funds committed, and expenditures made (projects). The City Council will hold Public Hearings on eligible projects under the LHTF. Disbursement of the funds will follow the constraints imposed by the HCD. For example, at least 30 percent of the funds must be expended on assistance to Extremely Low-Income Households as defined in the Ordinance. In addition, no more than 20 percent of the funds can be expended on assistance to Moderate Income Households.
BUDGET/FINANCIAL INFORMATION:
To establish the Fund, the dedicated money for the LHTF will be the $2,883,548 from the City’s General Fund allocated by the City Council on December 6, 2022, along with Inclusionary Housing In-lieu fees collected under the Municipal Code. Once the LHTF Ordinance is established and in place, Council can direct staff to include an annual transfer of additional funds from the General Fund into the LHTF during future annual budget processes.
The FY2024 General Fund adopted budget has a structural operating deficit of $2.7 million, with the deficit increasing into FY2025 and beyond as ongoing revenue growth is not adequate to address the ongoing expenditure growth, primarily due to pension, Council Agenda Report
Local Housing Trust Fund [Ordinance Introduction]
January 9, 2024
healthcare, and inflationary costs. If an annual transfer is approved, it will add to the deficit going forward requiring the use of additional reserves to balance the annual operating budget.
ATTACHMENT: SBLHTF Application Requirements
PREPARED BY: John Doimas, Assistant City Attorney
SUBMITTED BY: Tava Ostrenger, Acting City Attorney
APPROVED BY: City Administrator's Office
Attachment
City of Santa Barbara
Local Housing Trust Fund (SBLHTF) Application Requirements Applications are processed and prioritized on a first-come, first-served basis according to available funding. To be considered for approval of funding from the Local Housing Trust Fund, the applications must be submitted to the City Community Development Director for review, with final approval required by the City Council. There are no Request for Proposals or NOFA applications in this process to ensure efficiency and timeliness. The information required for the application include the following:
Detailed description of project including property to be acquired and developed, converted or rehabilitated, and the long-term use of the property Number of proposed units for the funding
Income levels of residents of residents to be served. Program Description – consisting of description of proposed program – who the project will serve, examples include the following – homeless, low income households, moderate income households, etc.
20-year project proforma
Property and project manager contact information
Title Report from a local Title Company
COUNCIL INTRODUCTION DRAFT
SHOWING CHANGES FROM
CURRENT CODE 01/09/24
1 ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING THE SANTA BARBARA
MUNICIPAL CODE BY ADDING CHAPTER 26.80
ESTABLISHING THE CITY OF SANTA BARBARA LOCAL
HOUSING TRUST FUND
THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:
SECTION 1. Title 26 of the Santa Barbara Municipal Code is amended by adding Chapter 26.80 which reads as follows:
26.80.010 Establishment and Purpose.
In accordance with Santa Barbara Charter Section 1215, the City Council hereby establishes the City of Santa Barbara Local Housing Trust Fund (“SBLHTF”), for the purpose of utilizing and leveraging locally generated dollars for the production and preservation of affordable housing units.
26.80.020 Definitions.
The following definitions shall apply to the interpretation of this Chapter:
A. AREA MEDIAN INCOME or AMI. The most recent applicable county median family income published by the State of California Department of Housing and Community Development (“HCD”).
B. ELIGIBLE PROJECT. Shall have the definition given in Cal. Code Regs.
Tit. 25 § 7302.
C. EXTREMELY LOW INCOME HOUSEHOLDS. Shall have the definition given in California Health & Safety Code Section 50106.
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2 D. HCD or DEPARTMENT. Shall mean the State of California Department of Housing and Community Development.
E. HCD GUIDELINES. As adopted by HCD to implement, interpret and make specific Health and Safety Code (HSC) Sections 50842.1, 50842.2, 50843.5 and 54006(f) which governs the Local Housing Trust Fund Program.
F. LOWER INCOME HOUSEHOLDS. Shall have the definition given in Health and Safety Code Section 50079.5.
G. MATCHING FUNDS. Funds to the SBLHTF that are provided on an ongoing basis from both private and public contributions or public sources and that are not otherwise restricted for housing use under federal or state law.
H. MODERATE INCOME HOUSEHOLDS. Shall have the definition given in Health and Safety Code Section 50093.
I. VERY LOW INCOME. Shall have the definition given in Health and Safety Code Section 50105.
26.80.030 Funding Sources.
SBLHTF shall receive funding from the sources set forth below. SBLHTF may also receive funding from any other legally available source.
A. MATCHING FUNDS. The SBLHTF shall receive Matching Funds in the amount of $2,883,548.00, that was allocated by the City Council on December 6, 2022, from the General Fund and specifically dedicated to a local housing trust fund.
B. ONGOING REVENUE. All inclusionary housing in-lieu fees collected under Sections 28.43.030, 28.43.070, 28.43.130, and 30.160.070 in the Municipal Code shall
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3 be deposited in the Local Housing Trust Fund as a dedicated and continuous source for operations of the Fund for a minimum of the required first five years of the Fund’s existence.
C. City Council may allocate funds as Ongoing Revenue and Matching Funds to the SBLHTF to provide additional funding as needed.
26.80.040 Eligible Uses of SBLHTF.
A. Monies deposited in the SBLHTF shall be used to secure Program Funds under the applicable HCD Guidelines and statutes. Program Funds and Matching Funds shall be used for payment of predevelopment costs, acquisition, construction, or rehabilitation of Eligible Projects. Monies in the SBLHTF not used as Matching Funds or as Ongoing Revenue sources, may be used in accordance with the priorities identified by the Council approved Housing Element and financing strategy to construct, acquire, rehabilitate, or subsidize Very Low, Lower, and Moderate income housing.
B. Administrative expenses of up to five percent of Program Funds and Matching Funds are permitted.
C. At least 30 percent of Program Funds and Matching Funds shall be expended on assistance to Extremely Low Income Households.
D. No more than 20 percent of Program Funds and Matching Funds, shall be expended on assistance to Moderate Income Households.
E. The remaining Program Funds and Matching Funds may be expended on assistance to Lower Income Housing.
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4 F. Expenditures from the SBLHTF shall be controlled, authorized, and paid in accordance with general City budgetary policies. Execution of contracts related to the use or administration of SBLHTF monies shall be in accordance with requirements expressly contained in the City’s Charter, the Municipal Code, and City policy.
26.80.050 Administration of Funds.
A. Applications for funding shall be in a form approved by the Community Development Director and shall specify the Eligible Project and the number of Extremely Low, Very Low, Lower, and Moderate-income housing units to be included in the Project.
The application shall include all documentation and information deemed necessary by the Community Development Director that meet HCD requirements and the requirements of the City of Santa Barbara Affordable Housing Policies and Procedures Handbook. The application process will not require a request for proposal or a NOFA application. Once reviewed for compliance, the Community Development Director will then forward the application to the City Council for consideration of financial assistance from the SBLHTF.
B. The SBLHTF funds shall be controlled and disbursed by the Finance Director.
C. Not later than July 31st of each year, the City shall provide the HCD with an annual report which contains the information required by the Guidelines, as may be amended from time to time. Additionally, revenues collected, funds committed, expenditures made, and any decisions made as to requests for reductions or exceptions shall be forwarded by the Finance Director and the Community Development Director and presented to the City Council.
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5 SECTION 2. 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 3. 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 Section 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under Section 15378. This 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
CITY COUNCIL AGENDA REPORT
AGENDA DATE: January 9, 2024
TO: Mayor and City Councilmembers
FROM: City Attorney’s Office
SUBJECT: Tenant Protection Ordinances [Ordinance Introduction] 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 Amending Sections 26.50.010, 26.50.040, 26.50.060, 26.50.070 and by Adding Section 26.50.080 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; and
B. 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 Amending Sections 26.40.020 and 26.40.030 Relating to Required One-Year Lease Offers to Residential Tenants.
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 Agenda Item No. 17
File Code No. 660.01
Council Agenda Report
Tenant Protection Ordinances [Ordinance Introduction]
January 9, 2024
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 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 are 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 prevent tenant harassment, which is modeled after similar ordinances of other California cities including Oakland and Lost Angeles.
On October 27, 2023, a copy of the draft ordinance amending Chapter 26.50 relating to just-cause evictions and the addition of Chapter 26.60 relating to tenant harassment was distributed for review and comment to interested persons, including tenant and rental owner organizations and representatives. On December 5, 2023, the Ordinance Committee considered the matter and after public input continued it for further consideration at its meeting on December 12, 2023. The Committee directed the City Attorney to include amendments responding to suggestions by Legal Aid, the League of Women Voters, and Councilmember Jordan for consideration at the December 12 meeting. On December 12, 2023, the Committee considered a draft ordinance including additional amendments as distributed and described at that meeting. Following further public input, the Committee unanimously approved and recommended for introduction and adoption the draft ordinance as presented at the December 12 meeting. The Committee also unanimously directed the City Attorney’s Office to draft and present directly to the City Council an additional ordinance amending Chapter 26.40, which relates to required one-year lease offers to residential tenants. Both ordinances are presented with this Agenda Report.
DISCUSSION
Staff recommendation A. Ordinance amending Chapter 26.50 relating to just-cause evictions and adding Chapter 26.60 relating to protecting tenants from harassment.
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.
Updates to Existing Just Cause Provisions (Sections 2 – 6, 8, Pages 2 – 14.) 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 Council Agenda Report
Tenant Protection Ordinances [Ordinance Introduction]
January 9, 2024
an express statement that a termination of tenancy subject to the just cause requirement includes any attempt by an owner to recover possession of a rental unit, including through expiration of a lease or failing, choosing not to renew a lease, or court proceeding.
Ordinance Section 3 clarifies that the exclusion of deed restricted units from operation of Chapter 26.50 does not apply to tenancies assisted by Section 8 Housing Choice Vouchers where the housing is not otherwise restricted.
Ordinance Section 4 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. Further, it clarifies that the dollar amount of tenant relocation assistance must be included in the notice.
Existing remedies for violations of the just cause requirements include defense to an unlawful detainer action, civil damages, and administrative or criminal enforcement.
Section 5 of the proposed ordinance amends Municipal Code Section 26.50.060 clarifying that it is the owner’s burden to plead and prove just cause and 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. The amendment also clarifies that an incomplete notice is void.
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 6 of the draft ordinance starting at page 8. 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. b. would be amended to require an owner seeking to permanently withdraw a rental unit from the market to file a notice with the Community Development Department specifying the intended new use. This will help enforce the good faith and permanent removal elements of this reason for removal. Third, Subsection B. 2. d. relating to demolition or substantial remodel of unit is amended to add a requirement for an opinion from an independent 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.
Fourth, 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 Council Agenda Report
Tenant Protection Ordinances [Ordinance Introduction]
January 9, 2024
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.
Section 8 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 Department.
Finally, Section 9 of the draft ordinance will add Municipal Code Section 26.50.080 to preclude a new owner of property having five or more rental units from initiating no-fault just cause evictions to demolish or substantially remodel a unit for a period of one year following the owner’s acquisition of the property.
Right of First Refusal to Re-rent following a No-fault Just Cause Eviction (Section 7, page
12.)
The new right of first refusal to re-rent is modeled after the recently adopted County ordinance. It is contained in Section 7 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. For purposes of the right of first refusal to re-rent following a termination of tenancy for a substantial remodel, which by definition includes any recovery of possession, is considered for all purposes to be a temporary interruption of the tenant’s right to a unit, and the exercise of the right to re-rent is considered a continuation of the pre-existing lease subject to the potential of a limited rent increase.
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].
Council Agenda Report
Tenant Protection Ordinances [Ordinance Introduction]
January 9, 2024
Tenant Protection from Harassment (Section 10, Pages 13 - 17.) Section 10 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 word 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 an aggrieved tenant. Remedies that a judge could impose in a civil case include:
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January 9, 2024
Actual damages or a minimum amount of $1000 per violation, whichever is greater. In the court’s discretion, reasonable attorney’s fees and costs. Up to three times the actual damages upon a showing that the owner has acted with oppression, fraud, or malice.
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.
Staff Recommendation B. Ordinance amending Municipal Code Sections 26.40.020 and 26.40.030 relating to required one-year lease offers to Residential Tenants.
The second ordinance amends Chapter 26.40, which was adopted in 2019. The first proposed amendment is to Section 26.40.020 to remove confusing, limiting language.
After amendment, the section will clearly state that a failure to comply with the provisions of Chapter 26.40 is a defense to a legal action brought to recover possession of a unit.
The second proposed amendment is to Section 26.40.030, to amend the definition rental unit so that the types of units covered under Chapter 26.40 and Chapter 26.50 are the same.
ENVIRONMENTAL REVIEW
These ordinances are 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 the ordinances have no potential for resulting in physical change to the environment directly or indirectly in that it merely regulates existing physical development.
PREPARED BY: Daniel S. Hentschke, Assistant City Attorney SUBMITTED BY: Tava Ostrenger, Acting 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 AND BY ADDING
SECTION 26.50.080 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
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 unless the owner is able to prove just cause, which must be stated in full in the notice of termination notice.
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3 B. Just cause includes at-fault just cause or no-fault just cause as defined in Section 26.50.070.
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, choosing not or failing to offer a renewal of a lease, or recovery of possession through a court proceeding. This Subsection is declarative of existing law.
SECTION 3. Subsection I of Section 26.50.030 of Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows:
I. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
This exception does not apply to tenancies assisted by Section 8 Housing Choice Vouchers where the housing is not otherwise restricted by deed, regulatory restriction
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4 contained in an agreement with a government agency, or recorded document or agreement requiring the owner to offer housing at below market rent.
SECTION 4. 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 dollar denominated 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 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.
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5 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 5. 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 render the notice void and 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. Failure by an owner to plead and prove compliance with this Chapter shall be a defense to any unlawful detainer action.
E. Any violation of this chapter shall entitle the aggrieved tenant to actual damages according to proof and costs and attorney’s fees.
F. The City Attorney is authorized to enforce this chapter through administrative, civil, or criminal action. The City Attorney is further authorized to bring 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.
G. 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.
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6 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 6. 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.
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.
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7 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.
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
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8 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 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
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9 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. The notice of termination must be filed with the Community Development Department when it is given to the tenant and must specify the intended use of the unit and the lot on which the rental unit is located. 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. 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:
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10 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 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.
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11 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 or had the legal right to occupy 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), 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
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12 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 7. 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.
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
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13 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. For purposes of this paragraph, a no-fault just cause termination of tenancy shall be deemed for all purposes to be a temporary interruption of the tenant’s rights to the unit and the exercise of the right of first refusal to be a continuation of the pre-existing lease subject to the rent increase authorized by this paragraph.
4. For a tenancy not subject to paragraph 3, establish the rental price in accordance with Civil Code § 1954.53 when applicable.
SECTION 8. Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended by adding Section 26.50.075 to read as follows:
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 9. Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended by adding Section 26.50.080 to read as follows:
26.50.080 Additional Limitation on No-Fault Just Cause Eviction for Demolition or Substantial Remodel.
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14 An owner who acquires property having five or more rental units shall not commence a no-fault just cause eviction of any qualified tenant to demolish or substantially remodel a unit for a period of one year following the owner’s acquisition of the property.
SECTION 10. 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, aid, or incite a course of conduct that adversely affects a tenant’s use or enjoyment of a rental unit, housing opportunity, or housing-related 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.
2. Failing to perform and timely complete necessary repairs and maintenance required by local or state law.
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15 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 word 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 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
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16 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 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
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17 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 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 or a minimum amount of $1000 per violation, whichever is greater.
2. In the court’s discretion, reasonable attorney’s fees and costs.
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18 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 11. The provisions of this Ordinance shall apply to proceedings to terminate a tenancy or recover possession of a unit that have not been fully completed before the effective date of this Ordinance. If a final judgment awarding possession of a unit has not been entered or the owner has not otherwise lawfully obtained possession of a unit under Chapter 26.50 of the Santa Barbara Municipal Code as it existed before the effective date of this Ordinance, then the owner must comply with the provisions of this Ordinance, including giving a new notice of termination, before termination of the tenancy or recovery of possession of a unit.
SECTION 12. 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 13. 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.
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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 26.40.020
AND 26.40.030 RELATING TO REQUIRED ONE-YEAR
LEASE OFFERS TO RESIDENTIAL TENANTS
THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 26.40.020 of Chapter 26.40 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows:
26.40.020 Remedies.
A. DEFENSE TO ACTION TO RECOVER POSSESSION. Failure of a landlord to comply with any of the provisions of this chapter shall provide the tenant, for a period of one year from the date of the failure of the landlord to comply with this chapter, with a defense in any legal action brought by the landlord to recover possession of the rental unit.
B. DEFENSE TO ACTION TO COLLECT RENT. Failure of a landlord to comply with any of the provisions of this chapter shall provide the tenant with a defense in any legal action brought by the landlord to collect rent increases made in violation of this chapter.
C. INJUNCTIVE RELIEF. A tenant may seek injunctive relief on his or her own behalf and on behalf of other affected tenants to enjoin the landlord's violation of this chapter.
D. REMEDIES ARE NON-EXCLUSIVE. Remedies provided in this section are in addition to any other existing legal remedies and are not intended to be exclusive.
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2 SECTION 3. Section 26.40.030 of Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to read as follows:
26.40.030 Definitions.
The following words and phrases used in this chapter shall have the meaning indicated, in this section unless the context or usage clearly requires a different meaning.
A. LANDLORD. An owner, lessor, or sublessor, or the agent, representative, or successor of any of the foregoing persons or entities who receives, or is entitled to receive, rent for the use and occupancy of any rental unit or portion thereof.
B. RENT. The consideration, including any bonus, benefit, or gratuity demanded or received by a landlord for or in connection with the use or occupancy of a rental unit and any separately charged amenities available to tenants such as parking, storage or other similar charges.
C. RENT INCREASE. Any additional rent demanded of or paid by a tenant for a rental unit.
D. RENTAL UNIT. A dwelling unit in the City of Santa Barbara with the land and appurtenant buildings thereto and all housing services, privileges, and facilities supplied in connection with the use or occupancy thereof, which unit is in a multiple-family dwelling (including a duplex) or boarding house. The except, the term "rental unit" shall does not include:
1. A single-family dwelling;
2. Rooms or accommodations in hotels or boarding houses which are lawfully rented to transient guests for a period of less than 30 days;
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3 3. Dwelling units in a condominium, community apartment, planned development or stock cooperative, or in a limited equity stock cooperative as defined in the California Business and Professions Code;
4. Dwelling units in which housing accommodations are shared by landlord and tenant;
5. Housing accommodations in any hospital, extended care facility, asylum, non-profit home for the aged, or in dormitories owned and operated by an institution of higher education, a high school or an elementary school;
6. Housing accommodations rented by a medical institution which are then subleased to a patient or patient's family;
7. Dwelling units whose rents are controlled or regulated by any government unit, agency, or authority, or whose rent is subsidized by any government unit, agency, or authority;
8. Dwelling units acquired by the City of Santa Barbara or any other governmental unit, agency or authority and intended to be used for a public purpose; or
9. Accessory Dwelling Units.
1. Any tenancy, occupancy, housing accommodation, or dwelling exempted from Chapter 26.50 of this Code under Section 26.50.030.
2. A rental unit occupied by a tenant who subleases the unit to a subtenant for a period less than one year.
3. A tenancy where the owner of the rental unit is renting the unit to the tenant as an express condition of, or consideration for employment under a written rental agreement.
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4 4. Lawfully operated vacation rentals.
E. TENANT. A person or persons entitled by written or oral agreement to occupy a rental unit to the exclusion of others.