Agenda packet, first session — Santa Barbara City Council, January 23, 2024

CITY OF SANTA BARBARA

CITY COUNCIL
Randy Rowse
Mayor
Sarah J. Knecht
Interim City Administrator
Mike Jordan
Mayor Pro Tempore
Mike Jordan
Ordinance Committee Chair
Tava Ostrenger
Acting City Attorney
Alejandra Gutierrez
Finance Committee Chair
Eric Friedman
Oscar Gutierrez
Meagan Harmon
Kristen W. Sneddon
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
JANUARY 23, 2024, 2:00 PM
AGENDA
IN-PERSON PUBLIC COMMENT: At the beginning of each meeting of the City Council, Finance Committee, or Ordinance Committee, any member of the public may address the City Council concerning any item not on the Council's agenda. Any person wishing to make such address should first complete and deliver a "Request to Speak" form prior to the time that public comment is taken up by the City Council. Each speaker will be given a total of 3 minutes to address the Council. Pooling of time is not allowed during general public comment. The time allotted for general public comment at the beginning of the 2:00 p.m. session is 30 minutes.

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

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

HOW TO REMOTELY OBSERVE AND/OR SPEAK LIVE AT A MEETING
• Web: https://santabarbaraca-gov.zoom.us/webinar/register/WN_JJS2kazqRyu2i83tshCkPw (Participation via Zoom)
• Telephone: Dial 1-669-900-6833, Enter Webinar ID: 894 2384 2846 (press *9 to raise/lower hand; press *6 to mute/unmute) • Online Streaming: Council meetings are streamed live at www.SantaBarbaraCA.gov/CAP • TV: Each regular City Council meeting is broadcast live in English and Spanish on City TV Channel 18 and rebroadcast in English on Wednesdays and Thursdays at 7:00 p.m. and Saturdays at 8:00 a.m., and in Spanish on Sundays at 3:00 p.m.

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

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

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

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

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

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

AMERICANS WITH DISABILITIES ACT: If you need auxiliary aids or services or staff assistance to attend or participate in this meeting, please contact the City Administrator's Office at 564-5305 or by email at [email protected]. If possible, notification at least 48 hours prior to the meeting will usually enable the City to make reasonable arrangements. For those who need accessibility accommodation in using the “raise hand” function and/or registering to participate in the Zoom session, please contact the Clerk’s office by 5:00 p.m. the day before the meeting for assistance. Additionally, a speaker may email [email protected] by 5:00 p.m. the day before a meeting, stating which item they wish to speak on. Specialized services, such as sign language interpretation or documents in Braille, may require additional lead time to arrange. 01/23/2024 Santa Barbara City Council Final Agenda Page 1 JANUARY 23, 2024 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street (120.03)
Recommendation: That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement with the Housing Authority of the City of Santa Barbara in the Amount of $6,000,000 for Acquisition of Real Property Located at 3055 De La Vina Street to Be Used for Permanent Affordable Housing, to Be Secured by a Deed of Trust and a 90-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements, subject to approval as to form by the City Attorney, as Necessary; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 23-076, Adopting the Budget for Fiscal Year 2024, to Approve an Increase in Fiscal Year 2024 Expenditure Appropriations in the Affordable Housing Fund in the Amount of $6,000,000 Funded by Affordable Housing Fund Reserves to Fund a Loan Agreement with the Housing Authority of the City of Santa Barbara for Acquisition of Real Property Located at 3055 De La Vina Street.

2. Subject: Appoint a Vice-Chair to the Finance Committee Recommendation: That Finance Committee appoint a Vice-Chair to the Finance Committee for calendar year 2024.
01/23/2024 Santa Barbara City Council Final Agenda Page 2 REGULAR CITY COUNCIL MEETING - 2:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CEREMONIAL ITEMS

1. Subject: Human Trafficking Awareness Month - January 2024 (120.04)

CHANGES TO THE AGENDA

CONSENT CALENDAR

2. Subject: Local Housing Trust Fund [Ordinance Adoption] (660.01) Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Adding Chapter 26.80 Establishing the City of Santa Barbara Local Housing Trust Fund.

3. Subject: Tenant Protection Ordinances [Ordinance Adoption] (660.01) Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Amending Sections 26.50.010, 26.50.030, 26.50.040, 26.50.060, and

26.50.070 Relating To Just Cause Eviction; by Adding Section 26.50.055 to Provide a Tenant Right of First Refusal to Re-Rent Following a No-Fault Just Cause Eviction; by Adding Section 26.50.075 Relating to Occupancy Following a Substantial Remodel, and by Adding Chapter 26.60 Relating to Protection of Tenants From Harassment.

4. Subject: City of Santa Barbara Gifting the Vessel Falcon to Channel Island 241 Management, a California LLC, dba Seabridge Marina [Resolution] (570.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Gifting the Vessel Falcon to Channel Islands 241 Management, a California LLC, dba Seabridge Marina. 01/23/2024 Santa Barbara City Council Final Agenda Page 3

5. Subject: Fiscal Year 2024 Interim Financial Statements for the Five Months Ended November 30, 2023 (250.02)
Recommendation: That Council accept the Fiscal Year 2024 Interim Financial Statements for the five months ended November 30, 2023.

6. Subject: Increase Purchase Order for the U.S. 101 State Street Undercrossing Project (530.04)
Recommendation: That Council authorize an increase to Purchase Order No. 32400530 with Upton Construction, Inc. for payment and performance bonding as well as steel post fabrication for the U.S. 101 State Street Undercrossing Project, in the amount of $322,668.25 for a total expenditure authority of $794,022.25.

7. Subject: Designation of Proposed Development at 531 East Ortega Street (Providence School) as a Community Benefit Project (640.09) Recommendation: That Council designate the proposed project at 531 East Ortega Street as a Community Benefit Project pursuant to Santa Barbara Municipal Code Chapter 30.170 and allocate 3,000 square feet (net) of nonresidential floor area to the project from the Nonresidential Growth Management Program’s Community Priority Project Category.

8. Subject: Water Supply Update and Annual Water Supply Management Report (540.08)
Recommendation: That Council:

A. Receive an update on the Three-Year Water Supply Strategy; and B. Approve and adopt the City of Santa Barbara Water Supply Management Report for the 2023 Water Year, finding that the groundwater resources are in long-term balance in accordance with the conjunctive management element of the City’s Enhanced Urban Water Management Plan.

REPORT FROM THE FINANCE COMMITTEE

PUBLIC COMMENT

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
01/23/2024 Santa Barbara City Council Final Agenda Page 4

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ADMINISTRATOR

PUBLIC HEARING

9. Subject: Public Hearing for the 2024 Downtown and Old Town Business Improvement Districts Assessments [Resolution] (290.00) Recommendation: That Council:

A. Conduct a public hearing and consider appropriate protests to the renewal of the Downtown and Old Town Business Improvement Districts Assessments for 2024, as required under the California Parking and Business Improvement Area Law of 1989; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Confirming the Fiscal Year 2024 Downtown and Old Town Business Improvement District Annual Assessment Report and Renewing the Downtown Business Improvement District and Old Town Business Improvement District Assessments for 2024.
01/23/2024 Santa Barbara City Council Final Agenda Page 5

COMMUNITY DEVELOPMENT DEPARTMENT

10. Subject: Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street [Ordinance Introduction; Resolution] (660.01)
Recommendation: That Council:

QUASI-JUDICIAL HEARING RULES APPLY TO THE FOLLOWING AGENDA ITEM

PUBLIC HEARING

11. Subject: Appeal of Planning Commission’s Approval of a Development Plan for 710–720 State and 15 East Ortega Streets (640.07)
Recommendation: That Council:

A. Deny the appeals of Steven A. Johnson and Gareth Kelly, and uphold the Planning Commission’s findings and approval of a Development Plan for the hotel project at 710-720 State and 15 East Ortega, and the Planning Commission’s determination that the project is exempt from further environmental review under California Environmental Quality Act Guidelines Section 15332 (Infill Development); and
B. Direct staff to return to Council with a Decision and Findings Resolution reflecting the outcome of the appeal hearing.
01/23/2024 Santa Barbara City Council Final Agenda Page 6

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: January 23, 2024 Alejandra Gutierrez, Chair
TIME: 12:00 PM Eric Friedman
PLACE: David Gebhard Public Meeting Room Meagan Harmon
630 Garden Street
Sarah Knecht Keith DeMartini
Interim City Administrator Finance Director
Members of the public may participate in person or via Zoom. Zoom instructions are below.  Web: (Participation via Zoom)
Register in advance for this webinar:
https://santabarbaraca-gov.zoom.us/webinar/register/WN_Ew9mgJKLQNeppMLEnpsm2A Webinar ID: 884 6050 4424
Passcode: 157412
After registering, you will receive a confirmation email containing information about joining the webinar.
 Telephone: Dial 1-669-900-6833, Enter Webinar ID: 884 6050 4424 (press *9 to raise/lower hand; press *6 to mute/unmute) REMOTE PUBLIC COMMENT: Members of the public wishing to speak must “raise their hand” in the Zoom platform by selecting the virtual hand icon when their item is called. The keyboard shortcut for this is Alt+Y for Windows and Option+Y for Macs. City staff will activate the speaker’s microphone when the speaker’s name is called. The speaker will then need to unmute themselves. They keyboard shortcut for this is Alt+M for Windows or Command-Shift-A for Macs.

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

File Code No. 120.03
ITEMS FOR CONSIDERATION:

1. Subject: Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street
Recommendation: That Finance Committee consider and recommend that City Council:

2. Subject: Appoint a Vice Chair to the Finance Committee Recommendation: That Finance Committee appoint a Vice-Chair to the Finance Committee for the calendar year 2024.

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Finance Committee
FROM: Housing and Human Services Division, Community Development Department
SUBJECT: Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street
RECOMMENDATION: That Finance Committee consider and recommend that City Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Loan Agreement with the Housing Authority of the City of Santa Barbara in the Amount of $6,000,000 for Acquisition of Real Property Located at 3055 De La Vina Street to Be Used for Permanent Affordable Housing, to Be Secured by a Deed of Trust and a 90-Year Affordability Control Covenant Imposed on Real Property and Authorizing the Community Development Director to Execute Such Agreements, subject to approval as to form by the City Attorney, as Necessary; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 23-076, Adopting the Budget for Fiscal Year 2024, to Approve an Increase in Fiscal Year 2024 Expenditure Appropriations in the Affordable Housing Fund in the Amount of $6,000,000 Funded by Affordable Housing Fund Reserves to Fund a Loan Agreement with the Housing Authority of the City of Santa Barbara for Acquisition of Real Property Located at 3055 De La Vina Street.

EXECUTIVE SUMMARY:

The Housing Authority of the City of Santa Barbara (HACSB) was created as a political arm by the Santa Barbara City Council in 1969 with a mission of creating safe, affordable, and quality housing opportunities for families and individuals while promoting selfsufficiency and neighborhood revitalization. For over 50 years, HACSB has been a valuable City partner, serving as both an award-winning affordable housing Agenda Item No. 1
File Code No. 120.03
Finance Committee Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street
January 23, 2024

Page 2 ends

developer and operator in the Santa Barbara community. The agency provides much-needed affordable housing opportunities for lower-income households.

HACSB is seeking $6,000,000 in loan funding from the City to acquire property located at 3055 De La Vina Street (Attachment 1) to provide 34 total studio apartments (33 units for tenants and a single manager’s unit) of permanent affordable housing for homeless individuals.

DISCUSSION:

Background
Property
The property is currently a 34-room hotel that sits on a 24,393-square-foot lot (0.56 acres). It is commonly known as the Quality Inn and is located at the intersection of De La Vina Street and State Street, on the edge of the Upper State and Samarkand neighborhoods (Attachment 2). It is situated between MacKenzie Park and the Trader Joe’s supermarket and is a short walk to the CVS drugstore.

Project
HACSB proposes to convert each of the 34 hotel rooms into studio apartments by adding small kitchenettes to each unit. With this addition, the studios will be eligible for Section 8 vouchers for rental assistance. The project will be owned, managed, and operated by HACSB. The complex will have an on-site manager, and supportive services will be provided to assist and work with the tenants. The property is ideal for the intended use because:
 The renovations needed are relatively straightforward (adding a kitchenette to each unit and removing/filling in the swimming pool);
 The property has an excellent location near many stores, services, and transportation arterials;
 The property configuration is well-suited for the proposed use as there is a single point-of-entry into the complex, and the unit entries are mostly internally oriented; and
 There is office space that can be used for the manager’s office and support services.

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

Finance Committee Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street
January 23, 2024

Page 3 ends

Project Financing Summary
Project Costs:

Property Purchase Price $10,000,000 + closing costs
Renovation Costs 2,500,000
Soft Costs 500,000
Total: $13,000,000
Project Financing:

Santa Barbara Foundation Loan $2,000,000
HACSB Equity 5,000,000 + closing costs
City of Santa Barbara Loan 6,000,000
Total: $13,000,000
The total cost per unit is $382,353. Under the proposed funding, $176,471 per unit would be provided by the City. This $176,471 per-unit cost is substantially less than the cost of building a new unit, which is approximately $700,000 according to recent figures.

City Loan
If approved, the proposed $6,000,000 City loan will have a 30-year term at three percent interest with a maturity date of 2054. Payments on the loan will be due on a “residual receipts” basis, meaning no payments will be due unless the net income of the project, after payment of necessary operating expenses and debt service, is sufficient to support such payments. Due to the use of Section 8 vouchers for the project, payments are anticipated since rent will be charged for the units.

Available Funding
The California Department of Housing and Community Development (HCD) has recently issued a Notice of Funding Availability for $170 million from the National Housing Trust Fund (NHTF) Program. Based on HACSB’s preliminary review of this program, this project has a high likelihood of getting awarded and HACSB plans to apply. If awarded, and depending on the size of award, the Santa Barbara Foundation’s loan, and possibly the City’s loan, could be repaid, probably in 2024 or 2025.

Santa Barbara County is designated as one of the disaster areas in the NHTF program; therefore, the state allocates extra funds to the area. Funding amounts can be up to $20 million per project. The proposed project falls within the per-unit cap determined by the California Tax Credit Allocation Committee limit of $387,116. Eligible activities include acquisition, rehabilitation, and permanent financing, all of which to this project. If awarded, the funding is provided in the form of a residual receipts loan, with an interest rate of zero percent and an initial 55-year minimum term. One hundred percent of the NHTF funds must benefit Extremely Low-Income households defined as at or below 30 percent Area Median Income or below the poverty line (whichever is greater) at move-in. Applications were due December 28, 2023, and the awards are expected to be announced around Finance Committee Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street
January 23, 2024

Page 4 ends

May 2024. The construction start deadline is October 1, 2024, and all funding must be expended by October 1, 2027.

Alternatively, if the NHTF application is not successful, the project would also qualify for the renewed HCD HomeKey program funding, which is anticipated to be announced early in the new year. HACSB plans to apply to that program for funding consideration should the NHTF application be denied.

Long-Term Affordability
As a condition for the City’s subsidy, a City Affordability Control Covenant Imposed on Real Property (covenant) will be recorded concurrently with the loan documents, requiring that the project remain affordable to Extremely Low-Income households for formerly homeless individuals for 90 years. HACSB has several other projects with the City and has always been compliant with the City’s affordability and reporting requirements.

Conclusion
Staff supports the proposed loan request because this project would contribute to the City’s goals as outlined in the City’s General Plan 2023–2031 Housing Element, specifically Goal 2 – Prioritize Affordable Housing, Policy 2.1, which states, “Encourage and provide development opportunities and incentives to increase production of affordable housing,” as well as Goal 3 – Provide Housing Assistance, Policy 3.4, which states, “Support rental assistance and emergency rent relief to lower-income households, including those with extremely low-incomes, and encourage landlords and property managers to participate in the Section 8 Housing Choice Voucher Program.” The Housing Authority has an excellent record of providing successful, innovative, efficient, and aesthetically pleasing projects that provide permanent housing opportunities to community members who would otherwise be unable to secure affordable housing. Their agency has been a valuable partner with the City in many projects in the past and has delivered exceptional projects on time and within budget for well over 50 years.

Staff requests that the Finance Committee recommend that City Council approve the $6,000,000 loan to acquire the property located at 3055 De La Vina Street to assist HACSB in providing valuable and much-needed permanent affordable housing units with support services for Extremely Low-Income, formerly homeless individuals in our community.

BUDGET/FINANCIAL INFORMATION:

Funding for the proposed $6,000,000 City loan will come from reserves in the City’s Affordable Housing fund, which has sufficient funds for this request. The Affordable Housing Fund has approximately $15,000,000 in available reserves; if the recommended loan is approved, that amount will be reduced to $9,000,000.

Finance Committee Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street
January 23, 2024

Page 5 ends

Additional financial impacts of approving the loan include reduced interest income in the Affordable Housing Fund, loss of Transient Occupancy Tax (TOT) in both the General Fund and the Creeks Fund, and reduced Tourism Business Improvement District (TBID) assessment revenue. The TOT and TBID reductions would be the result of the Quality Inn no longer operating as a hotel.

Reduced interest income resulting from a decreased cash balance in the Affordable Housing Fund is anticipated to be fully offset by future loan repayments. The TOT impact is projected to be a reduction of approximately $180,000 in the General Fund and $36,000 in the Creeks Fund. These amounts represent a reduction in revenue of approximately

0.65 percent of the overall TOT budget. The TBID reduction is anticipated to be approximately $1,000 in City TBID administration revenue and $35,000 in TBID revenue for Visit Santa Barbara.

ATTACHMENTS: 1. HACSB’s Request Letter

2. Property Information

3. Draft Ordinance

4. Draft Resolution
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office
November 20, 2023
Ms. Laura Dubbels
Housing and Human Services Manager
City of Santa Barbara Community Development
630 Garden Street
Santa Barbara, CA 93101
RE: FUNDING REQUEST FOR PURCHASE AND REHABILITATION OF 3055 DE LA VINA STREET Dear Laura:

The Housing Authority requests that the City of Santa Barbara Community development department consider providing $6,000,000 or more in residual receipts financing towards the purchase and rehabilitation of a 34-room hotel currently flagged as a Quality Inn located at 3055 De La Vina Street. The business plan for this property is to convert each of the 34 rooms into a studio apartment through the addition of a small kitchenette. These studios will then be eligible for Section 8 vouchers and used to house extremely low-income individuals that were formerly homeless. The complex will have an onsite manager and will have all of the necessary support services needed to assist and work with the tenant population. The property is ideal for this use since:
• The renovations needed are relatively straightforward; • The property has an excellent location in close proximity to many stores, services and transportation arterials;
• The property configuration is well suited to the proposed use as there is a single point of entry into the complex and the unit entries are mostly internally oriented; • There is office space that can be used for the manager’s office and support services; and • There is a reasonably good chance that the project will qualify for either the National Housing Trust Fund program or a renewed HomeKey allocation in 2024, which would allow for the repayment of the Foundation’s loan.

This property is located at the intersection of De La Vina Street and State Street on the edge of the Upper State and Samarkand neighborhoods. (Please see the attached draft marketing brochure that provides photographs, map and basic information.) It is situated between Mackenzie Park and the Trader Joe’s supermarket and a short walk from a CVS drugstore. The lot contains 24,393 square feet (0.56 acre). The seller is currently operating the property as a motel under a Quality Inn franchise. That franchise expires in May 2024, providing the flexibility to execute the proposed business plan unhindered after that date. While additional due diligence will need to be done to make sure that the building and environmental condition of the property is well understood, we believe that the primary rehab task will be to add a kitchenette into each unit and to remove/fill in the swimming pool.

We are estimating that this renovation work can be done for $2,500,000.

We anticipate that we will be able to purchase the property for $10,000,000. Including the renovation and soft costs, the total required uses of funds are approximately $13,000,000. (See attached proforma/projections model.) This represents an all-in cost of approximately $382,000 per unit, a number that is very reasonable for studio apartments in the current Santa Barbara real estate market. The Housing Authority is requesting financing from the City of Santa Barbara and hopes to be able to receive at least $6,000,000 from its Low- and ModerateIncome Housing Asset Fund for the project, as this will be a permanent affordable housing operation. We have also requested for the Santa Barbara Foundation to provide an additional $2,000,000. We will need to determine Attachment 1
Funding request letter to City of Santa Barbara
November 20, 2023

Page 2 of 2 ends

priority between the City’s funding and the Foundation’s funding. If both of these requests were approved, then the required equity that the Housing Authority would need to commit would be $5,000,000.

The property will be managed by the Housing Authority, which has substantial experience and track record in development and management of varying types of rental housing projects. The County of Santa Barbara has indicated that they will be able to assist with funding the support services, therefore reducing the operating costs. (Please note that, while conversations about this have taken place and we have been told that funding is likely, this is not reflected in the attached proforma model.)
The California Department of Housing and Community Development has recently issued a Notice of Funding Availability for $170 million from the National Housing Trust Fund (NHTF) Program. Based on our preliminary review of this program, this project would be a very good fit and we think that our likelihood of getting an award is very good. This would then enable the Foundation’s loan to be repaid, probably in 2024 or 2025.

For the NHTF program, Santa Barbara County is designated as one of the disaster areas and so has extra funds available to it. Funding amounts can be up to $20 million per project. The per unit cap is based on California Tax Credit Allocation Committee limits which is $387,116. Eligible activities include Acquisition, New Construction, Rehabilitation, and Permanent Financing. This funding takes the form of a residual receipts loan, with an interest rate of 0% an initial 55-year minimum term. Note that 100% of the NHTF funds must benefit Extremely LowIncome households defined as at or below 30% AMI or below the poverty line (whichever is greater) at move-in.

Applications are due December 28th. The award announcements are anticipated approximately May 2024. The construction start deadline is Oct. 1st, 2024 and all of the funded must be expended by October 1 st, 2027.

If the NHTF funds were not to work out for any reason, an alternative source of repayments could be the renewed HomeKey funding program which is anticipated to be announced early in the new year. The project would definitely meet the requirements of the HomeKey program. If neither the NHTF nor the HomeKey programs were awarded for the project, the Housing Authority would either seek alternative financing or - as a last resort – sell the property. Given the desirability of this location and the demand for hotel properties in Santa Barbara, the risk of repayment to the Foundation is low.

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

Thank you for your consideration of this grant request.

Sincerely,
Rob Fredericks
Executive Director/CEO
cc: Elias Isaacson
Skip Szymanski
Dale Fathe-Aazam
3055 De La Vina St

SANTA BARBARA

FOR SALE
34-key Hotel in
Vibrant Corridor
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
Attachment 2
HayesCommercial.com | Santa Barbara, CA

PROPERTY SUMMARY
Hospitality nvestment opportunity in the lively Upper De La Vina corridor. This 34-key hotel is situated on a prominent, high visibility corner where three streets intersect, near essential amenities like Starbucks and Trader Joe’s, ensuring convenience for guests. A swimming pool and spacious parking lot also provide ease and relaxation. The hotel is poitioned to offer both developers and hotel operators an opportunity to capitalize on the vibrant De La Vina scene. This offering is ideal for creative visionaries who can elevate its charm and functionality, shaping the future of this promising hotel in Santa Barbara’s flourishing hospitality landscape.

Incredible mountain views from the second floor
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 2 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA

PROPERTY DETAILS
Price $10,250,000
Keys 34
Floors Two
Lot Size 24,394 SF
APN 051-112-004
Zoning C-G
Operator Quality Inn/Choice
Hotels through
May 2024
To Show Call listing agent
Guests can unwind at the pool
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 3 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 4 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA
Building A
22 keys
Building B
12 keys
Lobby
Pool
Outdoor
seating

SITE PLAN
De La Vina St
State St
Samarkand Dr
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 5 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA

AERIAL OVERVIEW
Trader Joe’s
Los Agaves
Starbucks Flavor of India
Shintori Sushi
BevMo!
CVS
Cottage
Hospital
Downtown
Santa Barbara
SITE
State Street
De La Vina St
Samarkand Dr
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 6 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA
HOSPITALIT Y MARKET Big-city art and culture with the heart and hospitality of a small coastal town
Economy. Renowned for its fine restaurants, shopping, hotels and architecture, the tourism industry is the region’s main economic driver. The city economy also includes a large service sector, education, tech, health care, finance, agriculture and manufacturing.

Culture. The city’s history is evident in its Spanish architecture, emanating from the majestic Mission Santa Barbara. Downtown is brimming with eateries, theaters, museums, and hosts an annual international film festival.

Wine lovers can sample the Urban Wine Trail or take a short drive to the world-class vineyards of Santa Ynez Valley.

BEACH | ART | HISTORY | WINE
$383 Hospitality Average daily rate
Area Tourism
72%
hotel occupancy (2022)

6.1 million
visitors annually
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 7 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA

RENOVATION POTENTIAL
Plans for a complete revitalization of the property have been submitted to the Architectural Board of Review and received positive feedback.

The renovation would include new non-slip tiling along pedestrian areas creating clear paths from rooms and the pool to outdoor seating areas and the lobby, new planter areas creating a garden setting and improving privacy, parking lot re-paving, and myriad fixture and furnishing upgrades providing the property with a modern, refreshed look.

To be confirmed
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 8 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA
The subject property is situated in the Upper De La Vina Corridor, a highly trafficked and walkable sub-market consisting of popular restaurants, coffee shops, and services.

The surrounding residential areas of San Roque, Samarkand, and Hope Ranch provide outstanding neighborhood demographics for restaurant or retail. It has become a burgeoning center of new energy and businesses in recent years, with retailers like Trader Joe’s and beloved local favorites like Los Agaves joined by newer restaurants and coffee shops that have succeeded elsewhere in town, moving to this area in recent years. Popular, lively spots like Handlebar Coffee, Bree’osh Bakery, and Yellow Belly continue to enjoy success as new retailers like Westward General and Alamar Barbershop join the neighborhood.

In addition to dining and shopping amenities, the subject property is close to US 101, Highway 154, two major medical facilities and downtown Santa Barbara.

UPPER DE LA VINA
neighborhood
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 9 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA
Santa Barbara
89,570
current residents
$144,564
Avg. household income
Trendsetters
dominant tapestry segment
Trendsetters are young, well-educated, tech
savvy people living in upscale, high-rent areas. Hip culture, social media and spontaneous vacations abound.

Santa Barbara is 90 miles north of Los Angeles and is served by Santa Barbara Airport and Amtrak. Tucked between the Santa Ynez Mountains and the Pacific Ocean, Santa Barbara enjoys a mild, Mediterranean climate averaging 300 sunny days a year.

Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 10 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
HayesCommercial.com | Santa Barbara, CA

CONFIDENTIALITY AGREEMENT
The Seller, through Hayes Commercial Group (“Sales Agent”), has available for study certain information (“Evaluation Materials”) regarding 3055 De La Vina St in Santa Barbara, CA (the “Property”). We are prepared to furnish the Evaluation Materials to you in connection with discussions concerning your possible investment in the Property only on the condition that you agree to treat the Evaluation Materials confidentially and agree specifically as follows:

1. The Evaluation Materials furnished to you will not be used for any purpose other than to evaluate a possible investment in the Property by you as a Principal or broker;

2. You will not make any of the Evaluation Materials available, or disclose or distribute, either orally or in writing, any of the contents of the Evaluation Materials, to any person other than your counsel, analyst(s), equity partner(s), broker(s), or potential lender(s) (hereinafter “Excluded Persons”);

3. You will not disclose to any person, other than Excluded Persons, either the fact that discussions or negotiations are taking place concerning a possible investment in the Property by you or any of the terms, conditions or other facts with respect to any such possible investment, including the status thereof;

4. You agree that you will not contact the tenant or property management staff of the Property in connection with your review of the Evaluation Materials. Any and all questions related to the Evaluation Materials must be directed solely to Dylan Ward and Rob Adams at Hayes Commercial Group;

5. You acknowledge that neither the Seller, nor Hayes Commercial Group, nor any affiliate of either of such persons, nor any partner, director, officer, employee, agent of or consultant to any such persons (collectively, “Seller/Agent”) has made any representation or warranty as to the completeness or accuracy of the Evaluation Materials, and any representation or warranty in connection therewith is hereby expressly excluded. The Evaluation Materials provided to you are subject to change of price or terms, withdrawal from market without notice, and prior sale. You agree that the Seller/Agent shall have no liability to you resulting from the delivery to, or use by, you of the Evaluation Materials or otherwise with respect thereto, and you agree to defend, indemnify and hold the Seller/Agent harmless from and against all loss, damage or expense sustained or incurred by Seller/Agent by reason of any unauthorized distribution or disclosure of the Evaluation Materials by you or by any Excluded Person;

6. We may elect at any time to terminate access to the Evaluation Materials, and you agree that you will, following any request by us or if you do not wish to invest in the Property, promptly redeliver to us all written Evaluation Materials and any other written material (and agree to delete any analyses contained in a database or spreadsheet type format) containing information in the Evaluation Materials and will not retain copies of such written material;

7. You acknowledge that you have not dealt with any broker other than Hayes Commercial Group concerning the investment in the Property; and

8. You acknowledge that when you make available the Evaluation Materials to any Excluded Person, you will inform such Excluded Persons of the confidential nature of the Evaluation Materials and the existence and terms of this Agreement.

Please acknowledge your agreement to and acceptance of the foregoing by signing where indicated below and returning one (1) executed copy of the to our attention.

ACCEPTED AND AGREED effective as of __________________, 2023

PRINCIPAL BROKER
By: ___________________________ By: ____________________________ Name: ________________________ Name: _________________________ Company: _____________________ Company: ______________________ Tel: ___________________________ Tel: ____________________________ Email: _________________________ Email: __________________________ Mailing address: Hayes Commercial Group, 222 E Carrillo St, Suite 101, Santa Barbara, CA 93101. Fax: 805-456-0805 3055 DE LA VINA ST

SANTA BARBARA, CA
Dylan Ward
805.898.4392
[email protected]
lic. 01472452
Experience. Integrity. Trust.

Since 1993
P. 11 11/10/23 The information contained herein has been obtained from the owner of the property or from other sources deemed reliable. We have no reason to doubt its accuracy, but we do not guarantee it.

Rob Adams, ccim
805.898.4386
[email protected]
lic. 01344315
ATTACHMENT 3
ORDINANCE NO._____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A LOAN AGREEMENT

WITH THE HOUSING AUTHORITY OF THE CITY OF
SANTA BARBARA IN THE AMOUNT OF $6,000,000 FOR
ACQUISITION OF REAL PROPERTY LOCATED AT 3055

DE LA VINA STREET TO BE USED FOR PERMANENT

AFFORDABLE HOUSING, TO BE SECURED BY A DEED
OF TRUST AND A 90-YEAR AFFORDABILITY CONTROL

COVENANT IMPOSED ON REAL PROPERTY AND

AUTHORIZING THE COMMUNITY DEVELOPMENT

DIRECTOR TO EXECUTE SUCH AGREEMENTS,

SUBJECT TO APPROVAL AS TO FORM BY THE CITY

ATTORNEY, AS NECESSARY

WHEREAS, THE HOUSING AUTHORITY OF THE CITY OF SANTA BARBARA ("Owner'') is acquiring real property commonly known as 3055 De La Vina Street in the City of Santa Barbara ("Property); and
WHEREAS, by minute action on January 23, 2024, the City Council introduced an ordinance to approve a 30-year loan in the amount of Six Million Dollars ($6,000,000), from the City’s Affordable Housing Fund ("City Loan"), secured by a deed of trust and a ninety (90)-year affordability control covenant; and
WHEREAS, in exchange for the City Loan, Owner and City agree to record an Affordability Control Covenant imposed on Real Property restricting the rental of the Property to Extremely Low-Income residents ("Covenant") for a total of ninety (90) years to comply with the City's Affordable Housing Policies and Procedures; and WHEREAS, on January 30, 2024, the City Council, adopted by reading of title only an ordinance approving the City Loan, Deed of Trust and Covenant; and WHEREAS, the City Loan is secured by the Deed of Trust recorded in the office of the County Recorder on __________, 2024, as Instrument No. __________ of official records for the purpose of securing Owner's obligations under the City Loan; and ATTACHMENT 3
WHEREAS, Owner agrees to comply with Covenant recorded in the office of the County Recorder on ___________, 2024, as Instrument No. __________ of official records.

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

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

ATTACHMENT 4
RESOLUTION NO.

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

EXPENDITURE APPROPRIATIONS IN THE AFFORDABLE
HOUSING FUND IN THE AMOUNT OF $6,000,000 FUNDED

BY AFFORDABLE HOUSING FUND RESERVES TO FUND

A LOAN AGREEMENT WITH THE HOUSING AUTHORITY

OF THE CITY OF SANTA BARBARA FOR ACQUISITION OF
REAL PROPERTY LOCATED AT 3055 DE LA VINA
STREET.

WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2023; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2023;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 23-076, 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 [or amended] by Resolution No. 23-076, is hereby amended as follows:

1. City Council approves of appropriating available Affordable Housing Fund reserve funds in Fiscal Year 2024 in the amount of $6,000,000 in order to fund a loan agreement with the Housing Authority of the City of Santa Barbara for acquisition of real property located at 3055 De La Vina Street.

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

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING THE 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 be defined as projects that are considered eligible and in compliance with the California Department of Housing and Development guidelines.

C. EXTREMELY LOW INCOME HOUSEHOLDS. Shall have the definition given in California Health & Safety Code Section 50106.

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.

Agenda Item No. 2
File Code No. 660.01
2 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 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. 3 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.

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 Director for the evaluation of the application for compliance with State HCD requirements and City Council priorities. The application process will not require a request for proposal or a NOFA application. Application requirements will be based upon compliance with the State HCD requirements and the requirements of the established City of Santa Barbara Affordable Housing Policies and Procedures Handbook. 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 shall be administered by the Finance Director and applications for funding shall be submitted to the Community Development Director as described in

26.80.050 (A).

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.

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.
4 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.
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,

26.50.030, 26.50.040, 26.50.060, AND 26.50.070 RELATING TO JUST CAUSE EVICTION; BY ADDING SECTION

26.50.055 TO PROVIDE A TENANT RIGHT OF FIRST

REFUSAL TO RE-RENT FOLLOWING A NO-FAULT JUST
CAUSE EVICTION; BY ADDING SECTION 26.50.075

RELATING TO OCCUPANCY FOLLOWING A

SUBSTANTIAL REMODEL, AND BY ADDING CHAPTER

26.60 RELATING TO PROTECTION OF TENANTS FROM

HARASSMENT

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 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 Agenda Item No. 3
File Code No. 660.01
2 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.

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 3 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.

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.
4 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.

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.
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 5 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 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 6 and may include an operating agreement and other non-public documents. This subsection applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the residential unit as a primary residence for at least 12 consecutive months. If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.

However, if the intended occupant moves into the rental unit within 90 days after the tenant vacates but dies before having occupied the rental unit as a primary residence for 12 months, this will not be considered a failure to comply with this section or a material violation of this section by the owner.
b. The owner seeks in good faith to recover possession to permanently withdraw the rental unit from the rental market. 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:
i. Obtained all permits necessary to carry out the demolition or substantial remodel from the applicable governmental agencies. ii. 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. iii. 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. 7 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 (b)(2)(A)(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 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 D. 8 C. An owner seeking to rent a unit to which a person has a right of first refusal to re-rent under subsection B. shall:

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

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

3. 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. 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.
9 2. Failing to perform and timely complete necessary repairs and maintenance required by local or state law.

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

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

5. Threatening a tenant, by 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 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.
10 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 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. 11 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 10. 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 11. 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 12. The City Council finds that, on the basis of the whole record and exercising its independent judgment, this Ordinance is not subject to environmental review pursuant to the State Guidelines for Implementation of the California Environmental Quality Act Sections 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and 15061 (b)(3) because this Ordinance has no potential for resulting in physical change to the environment directly or indirectly in that it merely regulates existing physical development.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: Harbor Operations Division, Waterfront Department SUBJECT: City of Santa Barbara Gifting the Vessel Falcon to Channel Island 241 Management, a California LLC, dba Seabridge Marina [Resolution] RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Gifting the Vessel Falcon to Channel Islands 241 Management, a California LLC, dba Seabridge Marina.

DISCUSSION:

On December 12, 2023, Council adopted Resolution 23-156 declaring the vessel Falcon (the “Vessel”) abandoned property pursuant to California Harbors and Navigation Code Section 522 (“Section 522”). As a result of the Resolution, title of the abandoned Vessel was transferred to the City of Santa Barbara for purposes of abatement as permitted by Section 522. Presently, the Vessel remains docked at the Santa Barbara Waterfront with a continuously running de-watering pump affixed to prevent the Vessel from sinking into the Santa Barbara Harbor and causing environmental and safety hazards. The Vessel and de-watering pump are constantly monitored by Harbor Patrol Officers, causing the City to continually expend resources in order to maintain the boat afloat. Furthermore, the Vessel is taking up a significant amount of dock space at the accommodation dock and its poor condition has been a source of public complaints. Waterfront Department personnel desire to remove the Vessel from the Harbor District in an expedient costeffective manner.

To that end, the private entity, Channel Islands 241 Management, LLC dba Seabridge Marina (“Seabridge”), located in the Channel Islands Harbor, wishes to take immediate possession of the Vessel and has agreed to remove and transport the Vessel at no cost to the City of Santa Barbara. It is the intention of the Waterfront Department to gift the Vessel to Seabridge to save on the considerable cost of storage, disposal, and transport.

Agenda Item No. 4
File Code No. 570.03
Council Agenda Report
City of Santa Barbara Gifting the Vessel Falcon to Channel Island 241 Management, a California LLC, dba Seabridge Marina [Resolution]
January 23, 2024

Page 2 ends

THE BENEFITS PROVIDED TO THE PUBLIC:

Should the City decide to undertake disposal of the Vessel at its own expense, the estimated fees would be approximately $40,000. As of January 11, 2024, the Vessel has already accrued a balance of $25,007.75 from unpaid slip and impound fees and has prevented visiting vessels from using the guest tie up. The daily cost to monitor and run the de-watering pump is estimated at $100.00.

Letting Seabridge take title to the Vessel provides many benefits to the public. These benefits include: avoiding the high costs associated with Vessel transport and disposal; eliminating the threat of the Vessel sinking in harbor waters causing unknown environmental damage and safety hazards; redirects staff time from constant monitoring of the sinking Vessel to more useful duties; and eliminates the need for the de-watering pump and its associated costs.

As a Charter City, the City Council has the authority to issue a public gift for any reason including a public benefit.

PREPARED BY: Nathan Alldredge, Harbor Operations Manager SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: City Administrator's Office
1 RESOLUTION NO. _________

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA GIFTING THE VESSEL FALCON TO
CHANNEL ISLANDS 241 MANAGEMENT, A CALIFORNIA

LLC, DBA SEABRIDGE MARINA
WHEREAS, the City of Santa Barbara is the current titleholder of the Vessel Falcon (USCG Doc #636324) for the purposes of abatement; and
WHEREAS, the Vessel is located in the Santa Barbara Harbor in the visitor’s slip.

The Vessel is in poor condition and being kept afloat by a continuously running dewatering pump that requires constant monitoring by Harbor Patrol Officers at a significant cost to the City; and
WHEREAS, the estimated cost to the City of disposing the dilapidated Vessel is $40,000; and
WHEREAS, Channel Islands 241 Management, LLC dba Seabridge Marina, a single asset entity, desires to take immediate possession of the Vessel and has agreed to remove and transport the Vessel at no cost to the City of Santa Barbara; and WHEREAS, the City Council desires to gift the Vessel to Seabridge Marina for the public benefit of the costs that will be saved for the City not having to dispose of the Vessel.

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

1. The City of Santa Barbara declares that the Vessel Falcon (USCG Doc #636324) is abated by way of a gift to Channel Islands 241 Management, LLC dba Seabridge Marina.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Fiscal Year 2024 Interim Financial Statements for the Five Months Ended November 30, 2023
RECOMMENDATION:

That Council accept the Fiscal Year 2024 Interim Financial Statements for the five months ended November 30, 2023.

DISCUSSION:

The interim financial statements for the five months ended November 30, 2023 (42% of the fiscal year) are attached. The interim financial statements include budgetary activity in comparison to actual activity for the General Fund, Enterprise Funds, Internal Service Funds, and select Special Revenue Funds.

ATTACHMENT: Interim Financial Statements for the Five Months Ended November 30, 2023
PREPARED BY: Nathalie Lecolley, Controller
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 5
File Code No. 250.02
ATTACHMENT 1
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
GENERAL FUND (pages 3-7)
Revenue 171,655,791 59,007,122 503 112,649,172 34.4% 57,788,772 Expenditures 184,513,723 72,606,895 6,088,652 105,818,177 42.7% 60,171,507 Addition to / (use of) reserves (12,857,933) (13,599,773) (6,088,149) (2,382,735) MEASURE C (pages 3-7)
Included in GF summary
Revenue 31,900,000 13,529,582 - 18,370,418 42.4% 13,722,527 Expenditures 46,837,855 19,515,773 - 27,322,082 41.7% 11,833,089 Addition to / (use of) reserves (14,937,855) (5,986,191) - 1,889,438 SOLID WASTE FUND (page 9)
Revenue 38,291,420 16,058,017 - 22,233,403 41.9% 14,496,220 Expenditures 38,620,601 13,558,626 13,161,291 11,900,684 69.2% 12,852,908 Addition to / (use of) reserves (329,180) 2,499,391 (13,161,291) 1,643,312 WATER OPERATING FUND (page 10)
Revenue 74,712,846 33,099,292 - 41,613,554 44.3% 32,375,564 Expenditures 78,404,497 25,492,263 8,049,195 44,863,040 42.8% 22,522,273 Addition to / (use of) reserves (3,691,651) 7,607,029 (8,049,195) 9,853,290 WASTEWATER OPERATING FUND (page 11)
Revenue 29,143,452 12,228,473 - 16,914,979 42.0% 11,457,345 Expenditures 30,394,347 10,085,610 2,776,380 17,532,357 42.3% 9,026,101 Addition to / (use of) reserves (1,250,895) 2,142,863 (2,776,380) 2,431,244 DOWNTOWN PARKING FUND (page 12)
Revenue 11,363,643 4,273,491 - 7,090,152 37.6% 4,229,590 Expenditures 12,011,205 4,917,416 1,252,945 5,840,844 51.4% 3,869,971 Addition to / (use of) reserves (647,562) (643,925) (1,252,945) 359,619 AIRPORT OPERATING FUND (page 13)
Revenue 29,944,075 12,328,336 - 17,615,739 41.2% 11,178,770 Expenditures 31,275,042 10,994,897 3,667,515 16,612,630 46.9% 9,787,573 Addition to / (use of) reserves (1,330,967) 1,333,439 (3,667,515) 1,391,196 GOLF COURSE FUND (page 14)
Revenue 4,206,765 2,099,230 - 2,107,535 49.9% 1,856,492 Expenditures 3,788,996 1,308,927 2,091,737 388,332 89.8% 1,271,075 Addition to / (use of) reserves 417,769 790,302 (2,091,737) 585,417 FACILITIES MANAGEMENT FUND (page 15)
Revenue 7,296,218 2,848,176 - 4,448,042 39.0% 2,853,867 Expenditures 7,592,543 2,764,332 404,935 4,423,276 41.7% 2,588,959 Addition to / (use of) reserves (296,325) 83,844 (404,935) 264,908

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

Page 1 ends

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

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year) FLEET REPLACEMENT FUND (page 16)
Revenue 5,387,373 2,418,159 - 2,969,214 44.9% 1,659,344 Expenditures 7,837,741 909,739 1,997,289 4,930,714 37.1% 380,292 Addition to / (use of) reserves (2,450,368) 1,508,420 (1,997,289) 1,279,051 FLEET MAINTENANCE FUND (page 17)
Revenue 3,282,335 1,343,811 - 1,938,524 40.9% 1,364,628 Expenditures 3,559,810 1,447,591 342,743 1,769,475 50.3% 1,267,158 Addition to / (use of) reserves (277,475) (103,781) (342,743) 97,469 SELF INSURANCE TRUST FUND (page 18)
Revenue 17,330,117 7,260,912 - 10,069,205 41.9% 5,425,834 Expenditures 20,103,670 5,781,562 1,056,376 13,265,732 34.0% 5,161,171 Addition to / (use of) reserves (2,773,553) 1,479,350 (1,056,376) 264,664 INFORMATION TECHNOLOGY FUND (page 19)
Revenue 6,537,548 2,641,128 - 3,896,420 40.4% 2,114,897 Expenditures 6,718,420 3,046,156 122,526 3,549,738 47.2% 2,578,498 Addition to / (use of) reserves (180,872) (405,028) (122,526) (463,601) WATERFRONT OPERATING FUND (page 20)
Revenue 19,027,470 9,161,092 - 9,866,378 48.1% 8,612,967 Expenditures 19,337,385 8,057,698 1,203,781 10,075,906 47.9% 7,843,110 Addition to / (use of) reserves (309,915) 1,103,394 (1,203,781) 769,857 SANTA BARBARA CLEAN ENERGY FUND (page 21)
Revenue 47,660,583 17,661,765 - 29,998,818 37.1% 13,085,817 Expenditures 39,573,105 10,465,594 2,715,442 26,392,069 33.3% 11,060,788 Addition to / (use of) reserves 8,087,478 7,196,171 (2,715,442) 2,025,029 ENERGY AND CLIMATE MANAGEMENT FUND (page 22)
Revenue 3,078,032 1,215,453 - 1,862,579 39.5% 1,142,170 Expenditures 3,607,216 1,091,289 312,103 2,203,823 38.9% 799,152 Addition to / (use of) reserves (529,184) 124,164 (312,103) 343,018

TOTAL FOR ALL FUNDS
Revenue 500,817,668 197,174,039 503 303,644,132 39.4% 183,364,803 Expenditures 534,176,157 192,044,368 45,242,909 296,888,879 44.4% 163,013,626 Addition to / (use of) reserves (33,358,488) 5,129,671 (45,243,412) 20,351,178 ** It is City policy to adopt a balanced budget. In most cases, encumbrance balances exist at year-end. These encumbrance balances are obligations of each fund and must be reported at the beginning of each fiscal year. In addition, a corresponding appropriations entry must be made in order to accommodate the 'carried-over' encumbrance amount. Most differences between budgeted annual revenues and expenses are due to these encumbrance carryovers.

Page 2 ends

Revised YTD Remaining Percent Previous Change Over
Budget Actual Balance Received YTD Prior Year
TAXES
Sales and Use 30,650,000 12,898,781 17,751,219 42.1% 12,786,838 0.9% Measure C Sales Tax 31,900,000 13,529,582 18,370,418 42.4% 13,722,527 -1.4% Property Taxes 46,371,460 6,382,437 39,989,023 13.8% 6,090,018 0.0% Utility Users Tax 7,375,415 3,488,036 3,887,379 47.3% 2,969,831 17.4% Transient Occupancy Tax 27,586,000 13,597,127 13,988,873 49.3% 14,108,393 -3.6% Business License 2,850,000 290,409 2,559,591 10.2% 655,606 -55.7% Cannabis Excise Tax 1,518,910 545,516 973,394 35.9% 583,993 -6.6% Real Property Transfer Tax 1,200,000 343,983 856,017 28.7% 492,528 -30.2% Total Tax Revenues 149,451,785 51,075,871 98,375,914 34.2% 51,409,734 -0.6%

LICENSES & PERMITS
Licenses & Permits 233,310 54,349 178,961 23.3% 59,407 -8.5% Total 233,310 54,349 178,961 23.3% 59,407 -8.5%

FINES & FORFEITURES
Police 2,346,201 556,961 1,789,240 23.7% 524,244 6.2%
Other Fines & Forfeitures 664,600 211,463 453,137 31.8% 308,366 -31.4% Total 3,010,801 768,425 2,242,376 25.5% 832,610 -7.7%

USE OF MONEY & PROPERTY
Investment Income 1,456,485 778,090 678,395 53.4% 438,719 77.4% Rents & Concessions 1,584,288 619,130 965,158 39.1% 602,883 2.7% Total 3,040,773 1,397,221 1,643,552 45.9% 1,041,603 34.1%

INTERGOVERNMENTAL
Library 872,292 19,631 852,660 2.3% 16,454 19.3%
Fire 1,500,000 381,082 1,118,918 25.4% 128,314 197.0%
Other Intergovernmental 565,734 200,181 365,553 35.4% 139,543 43.5% Total 2,938,026 600,895 2,337,131 20.5% 284,311 111.4%

FEES & SERVICE CHARGES
Community Development 7,101,000 3,017,256 4,083,744 42.5% 3,283,348 -8.1% Parks & Recreation 4,400,928 2,288,250 2,112,678 52.0% 2,024,164 13.0% Other Service Charges 2,749,281 1,333,913 1,415,368 48.5% 1,898,817 -29.8% Total 14,251,209 6,639,419 7,611,790 46.6% 7,206,329 -7.9%

OTHER REVENUES
Interfund Charges & Reimbursement 13,289,997 5,305,734 7,984,263 39.9% 4,270,293 24.2% Overhead Indirect Allocations 9,380,779 3,855,862 5,524,917 41.1% 4,004,325 -3.7% Interfund Transfers 270,000 99,163 170,837 36.7% 277,427 -64.3% Interfund Loans 24,140 - 24,140 0.0% 10,058 -100.0%
Miscellaneous 1,096,592 425,774 670,818 38.8% 222,317 91.5% Donations 110,509 18,137 92,373 16.4% 1,165 1456.3%
Franchise Fees 6,457,869 2,295,855 4,162,014 35.6% 1,891,720 21.4% Total 30,629,886 12,000,524 18,629,362 39.2% 10,677,305 12.4% Subtotal Non-Tax Revenues 54,104,006 21,460,833 32,643,173 39.7% 20,101,565 6.8% TOTAL REVENUES 203,555,791 72,536,703 131,019,087 35.6% 71,511,299 1.4%

CITY OF SANTA BARBARA
General Fund
Interim Statement of Budgeted and Actual Revenues
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

Page 3 ends

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

GENERAL GOVERNMENT
Mayor & City Council
MAYOR & CITY COUNCIL 1,153,795 461,079 2,936 689,780 40.2% 389,223 ARTS AND COMMUNITY PROMOTIONS 2,251,993 1,188,206 858,294 205,494 90.9% 1,133,101 Total 3,405,788 1,649,285 861,230 895,273 73.7% 1,522,324 City Attorney
CITY ATTORNEY - - - - #DIV/0! -
CITY ATTORNEY-ADMINISTRATION 1,407,814 426,198 152,547 829,069 41.1% 387,861 CITY ATTORNEY-ADVISORY 1,555,824 577,960 - 977,864 37.1% 598,196 CITY ATTORNEY-CIVIL LITIGATION 1,701,377 550,729 - 1,150,648 32.4% 498,235 CITY ATTORNEY-CODE ENFORCEMENT 1,877,769 290,874 8,750 1,578,145 16.0% 170,846 Total 6,542,784 1,845,761 161,297 4,535,726 30.7% 1,655,138 Administration
CITY ADMINISTRATOR 2,667,934 1,023,425 135,510 1,508,999 43.4% 815,364 EMPLOYEE RELATIONS 2,857 1,190 - 1,667 41.7% -
CITY TV 656,271 218,142 29,868 408,261 37.8% 293,401
CITY CLERK 812,245 298,554 40,937 472,754 41.8% 255,187 Total 4,139,306 1,541,311 206,314 2,391,681 42.2% 1,363,953 Human Resources
HUMAN RESOURCES 2,453,643 952,228 324,278 1,177,137 52.0% 775,969 EMPLOYEE RELATIONS 348,635 161,382 72,567 114,686 67.1% 113,776 EMPLOYEE DEVELOPMENT 90,234 10,273 3,621 76,340 15.4% 4,701 Total 2,892,512 1,123,882 400,467 1,368,163 52.7% 894,446 Finance
ADMINISTRATION 346,675 148,718 483 197,474 43.0% 125,426 REVENUE & CASH MANAGEMENT 983,660 243,502 34,467 705,691 28.3% 233,332 CASHIERING & COLLECTION 773,844 281,591 - 492,253 36.4% 220,245 LICENSES & PERMITS 982,237 213,414 264,708 504,115 48.7% 211,085 BUDGET MANAGEMENT 895,252 283,065 9,401 602,786 32.7% 384,410 ACCOUNTING 1,086,039 463,408 55,364 567,267 47.8% 412,479 Miscellaneous 477,161 208,101 - 269,060 43.6% 190,008
ACCOUNTS PAYABLE 262,472 115,561 16,450 130,461 50.3% 114,914 CITY BILLING & CUSTOMER SERVICE 906,178 300,069 - 606,109 33.1% 235,820 PURCHASING 775,791 334,590 67 441,135 43.1% 329,064
CENTRAL WAREHOUSE 224,348 87,703 - 136,645 39.1% 97,181 MAIL SERVICES 173,608 66,907 2,534 104,167 40.0% 62,085 Total 7,887,265 2,746,628 383,474 4,757,163 39.7% 2,616,047 TOTAL GENERAL GOVERNMENT 24,867,655 8,906,866 2,012,783 13,948,006 43.9% 8,051,908 `
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

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YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
`
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

PUBLIC SAFETY
Police
CHIEF'S STAFF 2,595,149 1,103,076 22,380 1,469,694 43.4% 537,435 BUSINESS OFFICE 948,093 315,269 1,374 631,449 33.4% 230,811 RECORDS BUREAU 2,124,211 751,282 2,446 1,370,483 35.5% 648,986 STRATEGIC OPERATIONS AND PERSONNEL 2,339,144 739,975 5,559 1,593,610 31.9% 772,444 PROPERTY ROOM 289,940 118,812 - 171,128 41.0% 104,569
TRAINING, RECRUITMENT AND WELLNESS 3,709,897 1,029,690 127,783 2,552,424 31.2% 690,684 RANGE AND EQUIPMENT 2,830,350 1,371,533 407,279 1,051,538 62.8% 660,098 COMMUNITY & MEDIA RELATIONS 213,986 65,397 - 148,589 30.6% 61,730 INFORMATION TECHNOLOGY/CRIME ANALYSIS 1,866,758 939,648 67,309 859,802 53.9% 894,095 CRIMINAL INVESTIGATIONS & INTERNAL OP'S 7,854,189 2,554,639 6,442 5,293,108 32.6% 2,219,806 CRIME LAB 192,961 73,365 - 119,596 38.0% 61,499
FIELD OPERATIONS DIVISION 23,466,662 9,166,290 36,166 14,264,206 39.2% 8,247,499 TRAFFIC 1,165,373 368,005 15,530 781,838 32.9% 190,300
SPECIAL EVENTS 663,763 516,475 544 146,744 77.9% 385,285 STREET CRIMES UNIT 3,282,102 745,234 - 2,536,869 22.7% 601,117 SPECIAL ENFORCEMENT TEAM 45,723 51,765 - (6,041) 113.2% 95,166 PARKING AND STREET SWEEPING 491,120 123,497 - 367,623 25.1% 165,873 PARKING ENFORCEMENT 1,068,289 243,646 - 824,643 22.8% 291,446 COMBINED COMMUNICATIONS CENTER 4,006,882 1,678,968 - 2,327,914 41.9% 1,349,467 ANIMAL CONTROL 1,034,843 213,197 508,334 313,312 69.7% 285,037 Total 60,189,435 22,169,761 1,201,144 36,818,530 38.8% 18,493,345 Fire
ADMINISTRATION 1,681,732 774,499 - 907,233 46.1% 522,993 EMERGENCY SERVICES AND PUBLIC ED 437,760 177,841 - 259,919 40.6% 180,468 PREVENTION 1,511,797 542,381 525 968,891 35.9% 520,082
WILDLAND FIRE MITIGATION PROGRAM 975,722 217,826 52,379 705,516 27.7% 144,153 OPERATIONS 25,910,566 12,156,895 37,847 13,715,825 47.1% 10,549,413 TRAINING AND RECRUITMENT 951,609 393,330 - 558,279 41.3% 306,456 ARFF 3,164,463 1,488,006 - 1,676,457 47.0% 1,273,455
Total 34,633,648 15,750,777 90,751 18,792,120 45.7% 13,497,019 TOTAL PUBLIC SAFETY 94,823,083 37,920,538 1,291,895 55,610,650 41.4% 31,990,364

PUBLIC WORKS
Public Works
ADMINISTRATION 1,728,007 637,541 15,528 1,074,938 37.8% 532,917 ENGINEERING SVCS 9,014,644 3,287,054 46,931 5,680,659 37.0% 2,289,705 PUBLIC RT OF WAY MGMT 2,112,717 797,524 24,182 1,291,011 38.9% 632,196 ENVIRONMENTAL PROGRAMS 165,788 - - 165,788 0.0% 181,765 WATER RESOURCES 25,569 10,654 - 14,915 41.7% -
Total 13,046,726 4,732,773 86,640 8,227,312 36.9% 3,636,583 TOTAL PUBLIC WORKS 13,046,726 4,732,773 86,640 8,227,312 36.9% 3,636,583

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COMMUNITY SERVICES
Parks & Recreation
REC PROGRAM MGMT 1,381,894 482,761 12,853 886,280 35.9% 343,817 FACILITIES & SPECIAL EVENTS 2,090,050 737,208 261,644 1,091,197 47.8% 611,228 YOUTH ACTIVITIES 1,607,551 647,410 13,487 946,653 41.1% 682,745 ACTIVE ADULTS 1,039,085 438,720 4,190 596,176 42.6% 378,877 AQUATICS 1,953,262 1,003,739 29,383 920,140 52.9% 915,655 SPORTS 885,635 384,762 126,379 374,494 57.7% 284,530
TENNIS 580,339 207,862 183,705 188,773 67.5% 181,051
NEIGHBORHOOD & OUTREACH SERV 1,296,583 467,292 15,387 813,904 37.2% 438,514 ADMINISTRATION 1,474,716 580,738 858 893,121 39.4% 462,894 PROJECT MANAGEMENT TEAM 878,707 319,900 16,533 542,273 38.3% 254,854 PARK OPERATIONS MANAGEMENT 1,250,419 510,048 4,436 735,935 41.1% 399,673 GROUNDS & FACILITIES MAINTENANCE 6,783,208 2,631,905 244,492 3,906,811 42.4% 2,283,981 FORESTRY 1,984,435 708,359 143,960 1,132,117 43.0% 549,894 BEACH MAINTENANCE 176,154 80,398 16,989 78,767 55.3% 42,172 MEDIANS PARKWAYS & CONTRACTS 551,350 201,718 215,808 133,824 75.7% 164,585 Total 23,933,387 9,402,819 1,290,103 13,240,465 44.7% 7,994,470 Library
ADMINISTRATION 1,086,543 386,604 127,086 572,853 47.3% 413,350 CENTRAL LIBRARY 5,915,118 2,187,577 66,874 3,660,668 38.1% 2,103,459 EASTSIDE LIBRARY 672,882 184,650 1,489 486,743 27.7% 110,932 LIBRARY ON THE GO 290,540 69,128 - 221,412 23.8% 48,450 ADULT EDUCATION 368,863 130,269 - 238,594 35.3% 12,844
Total 8,333,946 2,958,228 195,449 5,180,269 37.8% 2,689,035 TOTAL COMMUNITY SERVICES 32,267,333 12,361,047 1,485,552 18,420,734 42.9% 10,683,505

COMMUNITY DEVELOPMENT
Community Development
ADMINISTRATION 2,353,636 902,858 93,252 1,357,525 42.3% 799,841 RENTAL HOUSING MEDIATION 353,565 139,484 218 213,863 39.5% 118,533 HUMAN SERVICES 984,325 230,438 565,116 188,771 80.8% 173,087 LONG RANGE PLAN & SPEC STUDY 1,064,257 423,949 956 639,352 39.9% 365,857 DEVEL & ENVIRONMENTAL REVIEW 1,897,314 665,644 17,683 1,213,987 36.0% 595,709 ZONING INFO & ENFORCEMENT 1,678,785 558,846 9,386 1,110,554 33.8% 521,354 DESIGN REV & HIST PRESERVATION 1,708,212 647,132 2,569 1,058,511 38.0% 553,845 BLDG INSP & CODE ENFORCEMENT 1,897,325 723,682 9,244 1,164,398 38.6% 518,240 RECORDS ARCHIVES & CLER SVCS 759,957 291,271 33,592 435,093 42.7% 261,826 BLDG COUNTER & PLAN REV SVCS 2,877,157 926,606 367,781 1,582,770 45.0% 855,694 CODE COMPLIANCE 972,361 360,259 145 611,957 37.1% 213,930 Total 16,546,893 5,870,169 1,099,941 9,576,782 42.1% 4,977,916 TOTAL COMMUNITY DEVELOPMENT 16,546,893 5,870,169 1,099,941 9,576,782 42.1% 4,977,916

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SUSTAINABILITY AND RESILIENCE
Sustainability and Resilience
ADMINISTRATION 58,387 3,238 46,205 8,944 84.7% 41,083
ABATEMENT 569,036 58,820 65,635 444,581 21.9% -
Total 627,423 62,057 111,840 453,525 27.7% 41,083
TOTAL SUSTAINABILITY AND RESILIENCE 627,423 62,057 111,840 453,525 27.7% 41,083

NON-DEPARTMENTAL
Non-Departmental
ANTICIPATED SALARY SAVINGS (6,000,000) - - (6,000,000) 0.0% - MEASURE C SALES TAX 46,837,855 19,515,773 - 27,322,082 41.7% 11,833,089 TRANSFERS OUT 4,228,142 415,791 - 3,812,351 9.8% 357,810 CAPITAL OUTLAY TRANSFER 3,945,000 2,337,652 - 1,607,348 59.3% 432,339 APPROP. RESERVE 161,469 - - 161,469 0.0% -
Total 49,172,466 22,269,216 - 26,903,250 45.3% 12,623,237 TOTAL NON-DEPARTMENTAL 49,172,466 22,269,216 - 26,903,250 45.3% 12,623,237 TOTAL EXPENDITURES 231,351,578 92,122,668 6,088,652 133,140,259 42.5% 72,004,596 ** The legal level of budgetary control is at the department level for the General Fund. Therefore, as long as the department as a whole is within budget, budgetary compliance has been achieved. The City actively monitors the budget status of each department and takes measures to address potential over budget situations before they occur.

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

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

TRAFFIC SAFETY FUND
Revenue 245,000 51,425 - 193,575 21.0% 70,854
Expenditures 245,000 83,533 - 161,467 34.1% 70,854
Revenue Less Expenditures - (32,108) - 32,108 -

CREEK RESTORATION/WATER QUALITY IMPRVMT
Revenue 6,047,071 3,005,113 - 3,041,958 49.7% 2,909,634 Expenditures 6,603,659 2,242,310 699,585 3,661,765 44.5% 1,695,414 Revenue Less Expenditures (556,588) 762,803 (699,585) (619,807) 1,214,220

COMMUNITY DEVELOPMENT BLOCK GRANT
Revenue 2,103,297 281,269 - 1,822,028 13.4% 119,773
Expenditures 2,092,104 147,933 529,139 1,415,032 32.4% 226,762 Revenue Less Expenditures 11,193 133,336 (529,139) 406,996 (106,989)

COUNTY LIBRARY
Revenue 492,475 798 - 491,677 0.2% 1,630
Expenditures 492,344 164,864 1,495 325,985 33.8% 157,383 Revenue Less Expenditures 131 (164,066) (1,495) 165,692 (155,754)

STREETS FUND
Revenue 13,231,712 5,571,621 - 7,660,091 42.1% 5,407,188 Expenditures 14,540,720 6,252,656 98,700 8,189,364 43.7% 4,980,079 Revenue Less Expenditures (1,309,008) (681,035) (98,700) (529,273) 427,110

MEASURE A FUND
Revenue 5,298,579 1,828,177 - 3,470,402 34.5% 1,915,934 Expenditures 6,153,018 2,407,999 425,483 3,319,535 46.1% 1,702,341 Revenue Less Expenditures (854,439) (579,822) (425,483) 150,867 213,593

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Special Revenue Funds
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

Page 8 ends

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

REVENUES
Service charges 37,623,904 15,810,148 - 21,813,756 42.0% 13,991,100 Other Fees & Charges 355,650 21,536 - 334,114 6.1% 15,655 Investment Income 130,300 73,943 - 56,357 56.7% 40,136
Grants 152,678 151,250 - 1,428 99.1% 155,450
Miscellaneous 28,888 1,139 - 27,749 3.9% 293,880
TOTAL REVENUES 38,291,420 16,058,017 - 22,233,403 41.9% 14,496,220

EXPENSES
Salaries & Benefits 2,021,072 742,299 - 1,278,772 36.7% 540,415 Materials, Supplies & Services 34,921,015 12,638,770 12,864,866 9,417,378 73.0% 12,170,248 Special Projects 1,292,874 93,316 240,758 958,800 25.8% 70,255 Transfers-Out 50,000 20,833 - 29,167 41.7% 20,833
Capital Outlay Transfers - - - - 0.0% 405
Equipment 272,223 63,407 55,666 153,150 43.7% 50,752
Other 40,000 - - 40,000 0.0% -
Appropriated Reserve 23,417 - - 23,417 0.0% -
TOTAL EXPENSES 38,620,601 13,558,626 13,161,291 11,900,684 69.2% 12,852,908 Revenue Less Expense (329,180) 2,499,391 (13,161,291) 10,332,719 1,643,312

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

SOLID WASTE FUND

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

REVENUES
Water Sales- Metered 61,627,176 28,200,869 - 33,426,307 45.8% 28,207,653 Service Charges 251,460 102,952 - 148,508 40.9% 126,774 Cater JPA Treatment Charges 2,400,000 580,884 - 1,819,116 24.2% 683,750 Investment Income 1,915,150 1,048,106 - 867,044 54.7% 628,460 Grants - 15,212 - (15,212) 0.0% -
Reimbursements 8,386,167 2,895,305 - 5,490,862 34.5% 2,649,008 Miscellaneous 132,893 255,963 - (123,070) 192.6% 79,918 TOTAL REVENUES 74,712,846 33,099,292 - 41,613,554 44.3% 32,375,564

EXPENSES
Salaries & Benefits 14,359,118 5,680,525 - 8,678,593 39.6% 4,845,892 Materials, Supplies & Services 26,547,749 6,792,828 7,981,473 11,773,448 55.7% 6,231,127 Special Projects 840,997 124,160 27,355 689,482 18.0% 156,118 Water Purchases 9,800,000 3,061,177 - 6,738,823 31.2% 3,318,345 Debt Service 9,188,111 2,023,098 - 7,165,013 22.0% 2,006,993 Capital Outlay Transfers 16,756,950 7,594,563 - 9,162,388 45.3% 5,866,744 Equipment 315,888 55,921 34,254 225,713 28.5% 20,236
Capitalized Fixed Assets 411,883 124,486 1,112 286,285 30.5% 42,330 Other 33,800 35,504 5,000 (6,704) 119.8% 34,488
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 78,404,497 25,492,263 8,049,195 44,863,040 42.8% 22,522,273 Revenue Less Expense (3,691,651) 7,607,029 (8,049,195) (3,249,486) 9,853,290

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

WATER OPERATING FUND

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

REVENUES
Service Charges 28,099,437 11,754,856 - 16,344,581 41.8% 11,047,217 Fees 613,443 248,866 - 364,577 40.6% 267,596
Investment Income 364,500 218,536 - 145,964 60.0% 118,936 Rents & Concessions 61,072 21,427 - 39,645 35.1% 20,418 Grants - (15,212) - 15,212 0.0% -
Miscellaneous 5,000 - - 5,000 0.0% 3,179
TOTAL REVENUES 29,143,452 12,228,473 - 16,914,979 42.0% 11,457,345

EXPENSES
Salaries & Benefits 9,225,935 3,737,459 - 5,488,476 40.5% 3,155,138 Materials, Supplies & Services 11,911,193 3,964,895 2,111,177 5,835,121 51.0% 3,345,943 Special Projects 1,338,161 176,120 551,768 610,273 54.4% 20,700 Debt Service 3,552,087 458,880 - 3,093,207 12.9% 480,880 Capital Outlay Transfers 4,056,315 1,690,131 - 2,366,184 41.7% 1,976,273 Equipment 161,175 41,629 12,645 106,901 33.7% 18,794
Capitalized Fixed Assets 145,381 14,983 94,290 36,108 75.2% 26,860 Other 4,100 1,513 6,500 (3,913) 195.4% 1,513
TOTAL EXPENSES 30,394,347 10,085,610 2,776,380 17,532,357 42.3% 9,026,101 Revenue Less Expense (1,250,895) 2,142,863 (2,776,380) (617,378) 2,431,244 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

WASTEWATER OPERATING FUND

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

REVENUES
Improvement Tax 1,000,000 281,685 - 718,315 28.2% 550,433 Parking Fees 9,023,365 3,380,455 - 5,642,910 37.5% 3,158,708 Other Fees & Charges 15,606 - - 15,606 0.0% 6,463
Investment Income 77,000 50,936 - 26,064 66.2% 25,240
Rents & Concessions 374,590 188,328 - 186,262 50.3% 136,771 Miscellaneous 170,183 79,212 - 90,971 46.5% 54,583
Operating Transfers-In 702,899 292,875 - 410,024 41.7% 297,393 TOTAL REVENUES 11,363,643 4,273,491 - 7,090,152 37.6% 4,229,590

EXPENSES
Salaries & Benefits 5,769,667 2,300,300 - 3,469,367 39.9% 1,888,524 Materials, Supplies & Services 4,716,200 2,029,925 965,007 1,721,268 63.5% 1,596,666 Special Projects 575,730 205,087 287,938 82,705 85.6% 79,541 Transfer-Out 4,600 - - 4,600 0.0% -
Capital Outlay Transfers 905,000 377,083 - 527,917 41.7% 300,453 Equipment 30,008 5,021 - 24,987 16.7% 4,787
Appropriated Reserve 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 12,011,205 4,917,416 1,252,945 5,840,844 51.4% 3,869,971 Revenue Less Expense (647,562) (643,925) (1,252,945) 1,249,308 359,619 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

DOWNTOWN PARKING FUND

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

REVENUES
Leases-Commercial/Industrial 5,500,077 2,338,835 - 3,161,241 42.5% 2,043,490 Leases-Terminal 10,778,396 4,267,046 - 6,511,350 39.6% 4,449,122 Leases-Non-Commercial Aviation 4,689,174 2,103,235 - 2,585,939 44.9% 2,019,383 Leases-Commercial Aviation 6,914,542 2,533,017 - 4,381,525 36.6% 2,464,619 Investment Income 467,500 252,762 - 214,738 54.1% 153,523 Grants 437,036 437,036 - - 100.0% -
Service Charges 1,669 - - 1,669 0.0% 676
Miscellaneous 155,682 81,304 - 74,378 52.2% 47,957
Operating Transfers-In 1,000,000 315,100 - 684,900 31.5% - TOTAL REVENUES 29,944,075 12,328,336 - 17,615,739 41.2% 11,178,770

EXPENSES
Salaries & Benefits 11,411,379 4,339,641 - 7,071,738 38.0% 3,726,243 Materials, Supplies & Services 13,709,540 4,804,648 2,954,512 5,950,380 56.6% 4,404,308 Special Projects 1,847,707 332,694 643,933 871,080 52.9% 272,540 Transfer-Out 628,167 163,808 - 464,359 26.1% 104,167
Debt Service 1,559,205 649,669 - 909,536 41.7% 646,563
Capital Outlay Transfers 1,676,136 698,390 - 977,746 41.7% 614,933 Equipment 258,353 6,048 64,071 188,234 27.1% 18,820
Capitalized Fixed Assets 53,000 - - 53,000 0.0% -
Other - - 5,000 (5,000) 0.0% -
Appropriated Reserve 131,556 - - 131,556 0.0% -
TOTAL EXPENSES 31,275,042 10,994,897 3,667,515 16,612,630 46.9% 9,787,573 Revenue Less Expense (1,330,967) 1,333,439 (3,667,515) 1,003,109 1,391,196 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

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

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

REVENUES
Fees & Card Sales 3,918,765 1,954,393 - 1,964,372 49.9% 1,742,034 Investment Income 57,000 38,713 - 18,287 67.9% 18,236
Rents & Concessions 231,000 105,094 - 125,906 45.5% 95,399 Miscellaneous - 1,029 - (1,029) 0.0% 824
TOTAL REVENUES 4,206,765 2,099,230 - 2,107,535 49.9% 1,856,492

EXPENSES
Salaries & Benefits 110,567 40,803 - 69,764 36.9% 33,060 Materials, Supplies & Services 3,376,451 1,143,125 2,091,737 141,590 95.8% 1,142,852 Capital Outlay Transfers 301,978 125,000 - 176,978 41.4% 95,000 TOTAL EXPENSES 3,788,996 1,308,927 2,091,737 388,332 89.8% 1,271,075 Revenue Less Expense 417,769 790,302 (2,091,737) 1,719,203 585,417 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

GOLF COURSE FUND

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

REVENUES
Service Charges 3,645,995 1,463,065 - 2,182,930 40.1% 1,398,286 Work Orders - Bldg Maint. 3,644,723 1,385,112 - 2,259,612 38.0% 1,455,492 Miscellaneous 5,500 - - 5,500 0.0% 89
TOTAL REVENUES 7,296,218 2,848,176 - 4,448,042 39.0% 2,853,867

EXPENSES
Salaries & Benefits 5,150,098 1,723,553 - 3,426,545 33.5% 1,680,502 Materials, Supplies & Services 2,129,675 911,457 251,857 966,361 54.6% 677,951 Special Projects 299,172 125,997 153,078 20,097 93.3% 147,184 Capital Outlay Transfers 3,598 1,499 - 2,099 41.7% 80,666 Equipment 10,000 1,826 - 8,174 18.3% 2,655
TOTAL EXPENSES 7,592,543 2,764,332 404,935 4,423,276 41.7% 2,588,959 Revenue Less Expense (296,325) 83,844 (404,935) 24,766 264,908

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

FACILITIES MANAGEMENT FUND

Page 15 ends

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

REVENUES
Vehicle Rental Charges 4,963,096 2,137,284 - 2,825,812 43.1% 1,234,346 Investment Income 351,897 211,411 - 140,486 60.1% 102,166 Rents & Concessions 4,380 42,989 - (38,609) 981.5% 42,989 Miscellaneous 68,000 26,474 - 41,526 38.9% 81,065
Operating Transfers-In - - - - 0.0% 198,778
TOTAL REVENUES 5,387,373 2,418,159 - 2,969,214 44.9% 1,659,344

EXPENSES
Salaries & Benefits 207,091 72,737 - 134,354 35.1% 70,586 Materials, Supplies & Services 25,316 11,464 - 13,852 45.3% 1,617 Debt Service 606,372 303,186 303,186 1 100.0% -
Capitalized Fixed Assets 6,998,962 522,352 1,694,103 4,782,507 31.7% 308,090 TOTAL EXPENSES 7,837,741 909,739 1,997,289 4,930,714 37.1% 380,292 Revenue Less Expense (2,450,368) 1,508,420 (1,997,289) (1,961,500) 1,279,051

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

FLEET REPLACEMENT FUND

Page 16 ends

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

REVENUES
Vehicle Maintenance Charges 3,162,732 1,287,544 - 1,875,188 40.7% 1,312,013 Reimbursements 5,000 4,167 - 833 83.3% 2,083
Miscellaneous 114,602 52,100 - 62,502 45.5% 50,531
TOTAL REVENUES 3,282,335 1,343,811 - 1,938,524 40.9% 1,364,628

EXPENSES
Salaries & Benefits 1,675,980 668,016 - 1,007,964 39.9% 594,646 Materials, Supplies & Services 1,757,837 753,285 287,779 716,773 59.2% 648,383 Special Projects 71,367 24,741 24,689 21,936 69.3% 23,019 Capital Outlay Transfers 1,467 611 - 856 41.7% 611
Equipment 7,884 938 - 6,947 11.9% 499
Capitalized Fixed Assets 30,275 - 30,275 - 100.0% -
Appropriated Reserve 15,000 - - 15,000 0.0% -
TOTAL EXPENSES 3,559,810 1,447,591 342,743 1,769,475 50.3% 1,267,158 Revenue Less Expense (277,475) (103,781) (342,743) 169,048 97,469

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

FLEET MAINTENANCE FUND

Page 17 ends

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

REVENUES
Insurance Premiums 11,001,421 4,586,873 - 6,414,548 41.7% 3,191,083 Workers' Compensation Premiums 5,724,102 2,407,316 - 3,316,786 42.1% 1,903,858 OSH Charges 301,269 126,701 - 174,568 42.1% 122,073
Unemployment Insurance Premium 200,000 79,963 - 120,037 40.0% 170,944 Investment Income 27,500 28,465 - (965) 103.5% 6,284
Operating Transfers-In 75,825 31,594 - 44,231 41.7% 31,594 TOTAL REVENUES 17,330,117 7,260,912 - 10,069,205 41.9% 5,425,834

EXPENSES
Salaries & Benefits 838,683 360,823 - 477,860 43.0% 317,438 Materials, Supplies & Services 19,264,578 5,420,113 1,056,376 12,788,089 33.6% 4,843,083 Capital Outlay Transfers 409 170 - 239 41.7% 170
Equipment - 456 - (456) 0% 479
TOTAL EXPENSES 20,103,670 5,781,562 1,056,376 13,265,732 34.0% 5,161,171 Revenue Less Expense (2,773,553) 1,479,350 (1,056,376) (3,196,528) 264,664 The Self Insurance Trust Fund is an internal service fund of the City, which accounts for the cost of providing workers' compensation, property and liability insurance as well as unemployment insurance and certain self-insured employee benefits on a city-wide basis. Internal Service Funds charge other funds for the cost of providing their specific services.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

SELF INSURANCE TRUST FUND

Page 18 ends

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

REVENUES
Service charges 6,208,379 2,581,487 - 3,626,892 41.6% 2,114,897 Operating Transfers-In 329,169 59,641 - 269,528 18.1% - TOTAL REVENUES 6,537,548 2,641,128 - 3,896,420 40.4% 2,114,897

EXPENSES
Salaries & Benefits 3,901,398 1,558,893 - 2,342,505 40.0% 1,059,415 Materials, Supplies & Services 2,559,813 1,385,014 122,526 1,052,272 58.9% 1,457,510 Special Projects 200 150 - 50 75.0% 632
Capital Outlay Transfers 240,830 100,346 - 140,484 41.7% 46,532 Equipment 13,000 1,752 - 11,248 13.5% 14,409
Appropriated Reserve 3,179 - - 3,179 0.0% -
TOTAL EXPENSES 6,718,420 3,046,156 122,526 3,549,738 47.2% 2,578,498 Revenue Less Expense (180,872) (405,028) (122,526) 346,682 (463,601) from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

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

Page 19 ends

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

REVENUES
Leases - Commercial 2,350,000 1,131,500 - 1,218,500 48.1% 1,135,841 Leases - Food Service 3,575,000 1,721,257 - 1,853,743 48.1% 1,726,507 Slip Rental Fees 5,578,030 2,368,572 - 3,209,458 42.5% 2,156,597 Visitors Fees 765,000 356,617 - 408,383 46.6% 318,792
Slip Transfer Fees 1,100,000 674,250 - 425,750 61.3% 587,900 Parking Revenue 3,596,500 1,856,026 - 1,740,474 51.6% 1,688,207 Wharf Parking 325,000 146,564 - 178,436 45.1% 144,292
Other Fees & Charges 272,740 115,261 - 157,479 42.3% 115,598 Investment Income 243,200 149,600 - 93,600 61.5% 84,804 Rents & Concessions 435,000 193,988 - 241,012 44.6% 192,479 Miscellaneous 787,000 447,457 - 339,543 56.9% 449,198
TOTAL REVENUES 19,027,470 9,161,092 - 9,866,378 48.1% 8,612,967

EXPENSES
Salaries & Benefits 8,132,167 3,280,744 - 4,851,423 40.3% 2,997,251 Materials, Supplies & Services 6,997,027 2,512,663 1,170,337 3,314,027 52.6% 2,192,936 Special Projects 225,565 81,963 0 143,603 36.3% 92,144
Debt Service 2,035,239 1,466,594 - 568,645 72.1% 1,467,316 Capital Outlay Transfers 1,650,000 687,500 - 962,500 41.7% 1,083,333 Equipment 174,040 26,721 14,597 132,721 23.7% 8,617
Capitalized Fixed Assets 21,347 - 13,847 7,500 64.9% -
Other 2,000 1,513 5,000 (4,513) 325.6% 1,513
Appropriated Reserve 100,000 - - 100,000 0.0% -
TOTAL EXPENSES 19,337,385 8,057,698 1,203,781 10,075,906 47.9% 7,843,110 Revenue Less Expense (309,915) 1,103,394 (1,203,781) (209,529) 769,857 Miscellaneous
NOTE - These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

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

Page 20 ends

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

REVENUES
Service Charges 47,660,583 17,637,934 - 30,022,649 37.0% 13,085,817 Investment Income - 2,771 - (2,771) 0.0% -
Grants - 21,060 - (21,060) 0.0% -
TOTAL REVENUES 47,660,583 17,661,765 - 29,998,818 37.1% 13,085,817

EXPENSES
Salaries & Benefits 527,742 181,046 - 346,696 34.3% 70,599 Materials, Supplies & Services 37,149,413 9,840,880.93 2,705,928 24,602,604 33.8% 10,604,114 Special Projects 1,384,649 443,667 9,514 931,468 32.7% 386,075 Debt Service 34,695 - - 34,695 0.0% -
Other 476,606 - - 476,606 0.0% -
TOTAL EXPENSES 39,573,105 10,465,594 2,715,442 26,392,069 33.3% 11,060,788 Revenue Less Expense 8,087,478 7,196,171 (2,715,442) 3,606,749 2,025,029

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

SANTA BARBARA CLEAN ENERGY FUND

Page 21 ends

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

REVENUES
Service charges 3,014,426 1,184,935 - 1,829,491 39.3% 1,063,570 Grants 1,606 - - 1,606 0.0% 78,600
Miscellaneous 62,000 30,518 - 31,482 49.2% -
TOTAL REVENUES 3,078,032 1,215,453 - 1,862,579 39.5% 1,142,170

EXPENSES
Salaries & Benefits 916,003 338,943 - 577,060 37.0% 233,317 Materials, Supplies & Services 2,377,891 729,314 161,021 1,487,556 37.4% 555,596 Special Projects 313,022 22,333 151,082 139,607 55.4% - Debt Service - - - - 0.0% 10,058
Capital Outlay Transfers - - - - 0.0% 181
Equipment 300 699 - (399) 233.1% -
TOTAL EXPENSES 3,607,216 1,091,289 312,103 2,203,823 38.9% 799,152 Revenue Less Expense (529,184) 124,164 (312,103) (341,244) 343,018 Miscellaneous
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Four Month Ended November 30, 2023 ( 42% of Fiscal Year)

ENERGY AND CLIMATE MANAGEMENT FUND

Page 22 ends

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: Engineering Division, Public Works Department
SUBJECT: Increase Purchase Order for the U.S. 101 State Street Undercrossing Project
RECOMMENDATION:

That Council authorize an increase to Purchase Order No. 32400530 with Upton Construction, Inc. for payment and performance bonding as well as steel post fabrication for the U.S. 101 State Street Undercrossing Project, in the amount of $322,668.25 for a total expenditure authority of $794,022.25.

DISCUSSION:

Background
The U.S. 101 State Street Undercrossing (Undercrossing) has among the highest concentration of serious injuries to pedestrians and cyclists in the City, and the improvement of safety for active transportation users through the Undercrossing is a priority. This Vision Zero Priority Project reallocates space through the Undercrossing between Yanonali and Gutierrez Streets to improve safety and rebalance space for vehicles, pedestrians, and cyclists. The U.S. 101 State Street Undercrossing Project (Project) is currently in construction.

Council previously authorized the Public Works Director to execute a sole source contract with Upton Construction, Inc. (Upton) in the total expenditure amount of $471,354 for the fabrication and installation of nonstructural tiled columns and capitals. Upton is uniquely qualified to perform this work due to their proven ability to perform the work based on their accepted scale mock-up provided during the design phase of the Project. However, the required payment and performance bonding costs were not included in Upton’s original proposal. Payment and performance bonding is required to maintain and meet Public Works’ contracting law. The Project also requires steel bases, posts, hardware, and precast columns with capitals, which were not originally identified in Upton’s proposal for the 24 columns per the plan. These services are required in order to complete the nonstructural tile column installations and finish the Project.

Agenda Item No. 6
File Code No. 530.04
Council Agenda Report
Increase Purchase Order for the U.S. 101 State Street Undercrossing Project January 23, 2024

Page 2 ends

Current Status
The initially identified scope required Upton to provide and install the tile for the 24 columns including all materials necessary to attach the tiles to the columns, grout, and sealer. The additional services requested are required to meet Public Works’ contracting law, install the steel base embedded hardware, and provide and install the steel posts, precast columns, and capitals for the 24 columns.

BUDGET/FINANCIAL INFORMATION:

Funding
The following summarizes Upton’s construction purchase order funding.

PURCHASE ORDER FUNDING SUMMARY
Base Contract
Extra Service
Allowance
Total
Initial Purchase Order $428,504.00 $42,850.00 $471,354.00 Proposed Increase $322,668.25 $0.00 $322,668.25
Total $751,172.25 $42,850.00 $794,022.25
If the recommendation is approved, the total purchase order expenditure authority will increase to $794,022.25. There are sufficient expenditure appropriations in the Measure C Capital Fund to cover the cost of the proposed increase to the purchase order with Upton.

ENVIRONMENTAL REVIEW:

The Project was determined to be exempt under the California Environmental Quality Act, Section 15301, Existing Facilities. This exemption covers the operation, repair, maintenance, and minor alterations to existing facilities involving no or negligible expansion of existing or former use. The Project falls under subdivisions b, c, f, and h of Section 15301. The Project involves minor alterations (bicycle lane improvements, pedestrian improvements, addition of street trees, and vehicle lane reduction) of an existing public street, involving negligible or no expansion of use. A Notice of Exemption was filed on September 9, 2020.

PREPARED BY: Brian D’Amour, P.E., City Engineer/TB/sk
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: Planning Division, Community Development Department SUBJECT: Designation of Proposed Development at 531 East Ortega Street (Providence School) as a Community Benefit Project
RECOMMENDATION:

That Council designate the proposed project at 531 East Ortega Street as a Community Benefit Project pursuant to Santa Barbara Municipal Code Chapter 30.170 and allocate 3,000 square feet (net) of nonresidential floor area to the project from the Nonresidential Growth Management Program’s Community Priority Project Category.

DISCUSSION:

Proposed Project
The project consists of redevelopment of the existing site (formerly Girls Inc.) to accommodate a junior/high school (grades 6–12) campus for Providence School. The project involves additions and alterations to the existing single-story main building, demolition of the existing gymnasium and construction of a new 10,500-square-foot gymnasium, a new 4,969-square-foot two-story building comprised of a theater, library, and chapel, and a new 4,244-square-foot two-story building comprised of classroom and office administration space. The project includes alterations to the existing surface parking lot to accommodate a total of 40 uncovered vehicle spaces, new bicycle parking, grading, and landscape/hardscape improvements throughout the site. The application requires a Conditional Use Permit (CUP) to allow for the operation of a school in the R-M (Residential Multi-Unit) zone and a Development Plan to allow the construction of new nonresidential floor area.

On June 27, 2023, City Council designated the project as a Community Benefit project and allocated 6,500 square feet under the Community Priority Project Category. Since that time, the project plans have evolved to include an upper floor for the theater to accommodate a library and chapel. The design has received positive feedback from the Historic Landmarks Commission. The applicant has now requested an additional 3,000 square feet, 2,000 of which will come from the Small Addition category, and 27 square Agenda Item No. 7
File Code No. 640.09
Council Agenda Report
Designation of Proposed Development at 531 East Ortega Street (Providence School) as a Community Benefit Project
January 23, 2024

Page 2 ends

feet from the Minor Addition category. This additional space will allow for the proposed site redevelopment to accommodate the school use and allow the project to request Development Plan approval from the Planning Commission. The request also includes a 244-square-foot buffer to accommodate any changes that may occur within the proposed design. The applicant discusses the additional requested nonresidential square footage and project goals in the attachment (applicant’s letter).

Nonresidential Growth Management Ordinance
Adopted in 2013, the City’s Nonresidential Growth Management Program limits certain new nonresidential growth to a total of 1.35 million net new square feet until December 31, 2033. This floor area limitation is divided among three development categories:

Community Benefit Projects, Small Additions, and Vacant Property. The initial allocations by City Council were: 600,000 square feet for Community Benefit Projects; 400,000 square feet for Small Additions; and 350,000 square feet for Vacant Property.

New nonresidential projects must be allocated floor area from one or more of the three categories and must also be consistent with the City’s Traffic Management Strategy as implemented by Santa Barbara Municipal Code (SBMC) Section 30.170.030. The project site is in the Downtown Development Area.

Community Benefit Projects include three subcategories: Community Priority Projects, Economic Development Projects, and New Vehicle Sales Projects. The applicant requests designation of the proposed project as a Community Priority Project.

Community Benefit Project Designation
As stated above, the City Council previously designated the project as a Community Benefit project with an allocation of 6,500 square feet. The proposal qualified under the subcategory “Community Priority Project,” which is described as having a broad public benefit, not principally operated for private profit, and necessary to meet a present or projected need directly related to public health, safety, or general welfare (e.g., museums, childcare facilities, health clinics).

The 3,000 square feet of additional requested Community Benefit Project floor area represents 0.5 percent of the original 600,000 square feet allocated to Community Benefit Projects in the Nonresidential Growth Management Program until 2033. To date, City Council has allocated a total of 216,383 square feet from the Community Benefit Category to 15 projects, as identified in the table below. Additionally, 106,668 square feet of expired Small Addition floor area has been reallocated to the Community Benefit category by the Planning Commission since 2013, when the allocations were initially established. To date (approximately halfway through the 20-year allocation period), a total of 490,285 square feet, or 81 percent, of the floor area remains available for Community Benefit Projects through 2033.

Council Agenda Report
Designation of Proposed Development at 531 East Ortega Street (Providence School) as a Community Benefit Project
January 23, 2024

Page 3 ends

COMMUNITY BENEFIT ALLOCATIONS (2013 - Present)
Allocations Entity Amount (sf)
Original Allocation 600,000
1130 State Street Santa Barbara Museum of Art (8,990)
400 Hitchcock Way Tesla (9,700)
6100 Hollister Avenue Direct Relief (110,000)
350 Hitchcock Way Maserati (39,000)
402 S. Hope Avenue Mercedes-Benz (242)
35 Anacapa Street Museum of Contemporary Art (3,007)
115 W. Anapamu Street Sanctuary Center Care Clinic (7,928) 2407 Bath Street Cottage Hospital Medical Office (9,926) 621 W. Micheltorena Street Westside Medical/Dental Clinic (3,352) (975)
402 S. Hope Avenue Automobile Dealership (6,061)
3237 State Street
American Indian Health &
Services (2,500)
540 W. Pueblo Street Cancer Center (1,614)
138 Powers Avenue High Seas Mead (750)
3237 State Street
American Indian Health &
Services (5,838)
531 E. Ortega Street Providence School (6,500)
Subtotal after allocated cases 383,617
Expired/ Reallocated Small
Addition 106,668
Total Community Benefit
floor area available 490,285
Current Requests Pending
531 E. Ortega Street Providence School (3,000)
Total that would remain 487,285
The proposed use is the same as when it was designated on June 27, 2023; therefore, staff recommends that City Council designate the project as a Community Benefit Project and allocate the additional 3,000 square feet of nonresidential floor area from the Community Priority Project Category. The project is in the Downtown Development Area and is therefore eligible for an allocation of floor area from the Community Priority Project category pursuant to the City’s Traffic Management Strategy. Additionally, educational institutions are included in the Community Priority Development category described in General Plan Policy LG7 Community Benefit Non-Residential Land Uses as a possible implementation action to be considered.

Council Agenda Report
Designation of Proposed Development at 531 East Ortega Street (Providence School) as a Community Benefit Project
January 23, 2024

Page 4 ends

GENERAL PLAN (2011)
LG7. Community Benefit Non-Residential Land Uses. Community Benefit Land Uses are determined and defined by City Council and shall include the following categories:

Possible Implementation Action to be Considered
LG7.1 Findings. Develop project level findings of approval for the following Community Benefit Non-residential development uses:
a. Community Priority Development. This type of project addresses a present or projected need directly related to public health, safety or general welfare including but not limited to:
 Parks and recreation facilities;
 Community centers;
 Educational institutions and uses including schools;
 Public cultural or art facilities;
 Youth development programs and childcare facilities; and  Community gardens and urban farming
LG9. Multigenerational Facilities and Services. The City recognizes that there is an increasing need for multigenerational facilities and services. The City shall encourage development which provides for multigenerational facilities and services.

Possible Implementation Actions to be Considered
LG9.3 Site Identification. Identify specific suitable areas and encourage the development of schools, preschools, or day care centers that are compatible with surrounding land uses and that minimize travel demand.

BUDGET/ FINANCIAL INFORMATION:

The requested designation would have no budgetary or financial impact.

ENVIRONMENTAL REVIEW:

The designation of a project as a Community Benefit Project and reservation of floor area enables the City to accept the development application for processing, but does not commit City Council or the Planning Commission to a definite course of action (CEQA Guidelines §15352(a) Approval); therefore, the Community Benefit designation and allocation of floor area are not subject to environmental review pursuant to the California Environmental Quality Act. If the requested Community Benefit floor area is allocated for the project, the application will continue through the City’s standard review process.

Environmental review would be completed as part of the development application review.

Council Agenda Report
Designation of Proposed Development at 531 East Ortega Street (Providence School) as a Community Benefit Project
January 23, 2024

Page 5 ends

CONCLUSION:

Providence School (531 E Ortega Street) qualifies as a Community Priority Project and can be allocated 3,000 net square feet of new nonresidential floor area from the Community Benefit category of the City’s Nonresidential Growth Management Program.

In addition, the proposed project is consistent with the City’s Traffic Management Strategy as implemented by SBMC Section 30.170.030, because it is in the Downtown Development Area, which allows allocations from the Community Priority Project category by the City Council.

ATTACHMENT: Applicant Letter Dated December 13, 2023
PREPARED BY: Pilar Plummer, Associate Planner
SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office

ATTACHMENT

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: Water Resources Division, Public Works Department SUBJECT: Water Supply Update and Annual Water Supply Management Report RECOMMENDATION: That Council:

EXECUTIVE SUMMARY:

This water supply update provides an overview of the City of Santa Barbara (City)’s water supplies following the conclusion of Water Year (WY) 2023 and includes an analysis with the conclusion that the City’s available water supplies are sufficient to meet demands for at least the next three years. Heavy winter 2023 rainfall filled Gibraltar Reservoir to 100% capacity; the reservoir began spilling on January 5, 2023, and continued spilling until July 6, 2023. Lake Cachuma also filled to capacity and began spilling on February 26, 2023, and continued spilling until June 30, 2023. The 2023 winter storms dramatically improved the City’s water supply situation, eliminating the potential for a supply shortage for at least the next three years. This report also provides a summary of the 2023 Annual Water Supply Management Report (WSMR), which is a backward-looking document summarizing water supplies and issues for WY 2023 (October 1, 2022, through September 30, 2023). The report fulfills a mitigation requirement for the Coastal Branch of the State Water Project (SWP) to manage water supplies in a manner that prevents the long-term overdraft of local groundwater supplies.

DISCUSSION:

Water Supply Update
WY 2024 began on October 1, 2023, at the end of WY 2023. At the start of each new water year, staff updates the City’s water supply planning charts to reflect the actual amount of water used during the previous water year (in this case, October 1, 2022, through September 30, 2023) and extend the three-year water supply strategy one additional year. Thus, this supply strategy extends through WY 2026. Updates to the Agenda Item No. 8
File Code No. 540.08
Council Agenda Report
Water Supply Update and Annual Water Supply Management Report January 23, 2024

Page 2 ends

City’s water supply planning strategy are conservative to ensure water security for our community. This conservative planning approach allows staff to determine if the City has sufficient water to meet demands under three additional years of drought, or during unanticipated supply interruptions due to equipment or infrastructure failure.

The recent update to the City’s water supply planning strategy demonstrates that even if drought conditions return next year, or the City experiences supply interruptions, the City’s water demands can be met for at least the next three water years (through WY 2026) using water from Lake Cachuma, Gibraltar Reservoir, Mission Tunnel infiltration, desalination, the State Water Project, and recycled water. A more than half-full Gibraltar Reservoir and a nearly full Lake Cachuma means the City can primarily rely on its surface water supplies over the next several years to meet community demands. However, assuming drought conditions return next year and persist for the next three years, the City should continue to embrace conservation as a way of life.

In May 2022, in response to statewide drought conditions, the California State Water Resources Control Board (SWRCB) adopted regulations requiring water agencies to implement the water-saving actions associated with a Stage Two Water Shortage, as defined in their Water Shortage Contingency Plans. In June 2022, Council adopted a Stage Two Water Shortage Alert in response to the SWRCB’s regulations. In response to the wet 2023 winter, Governor Newsom rescinded the statewide emergency drought declaration per Executive Order N-5-2023, dated March 24, 2023. Santa Barbara rescinded its Stage Two Water Shortage Alert on June 13, 2023.

Annual Water Supply Management Report
The WSMR summarizes activities of the past water year (October 2022 through September 2023). The WSMR fulfills a mitigation requirement of the Coastal Branch of the SWP for managing water supplies to prevent long-term overdraft of local groundwater.

City staff also use the WSMR to inform Council and the public of recent activities and current water supply conditions. Summarized below are key issues in the WSMR for each City water source.

Lake Cachuma
One of the most important indicators of the City’s water supply status is storage in Lake Cachuma, which ended WY 2023 at 93% capacity. As a result of declining lake elevation and diminished water available for allocation at the beginning of the water year, the U.S.

Bureau of Reclamation (Reclamation) initially granted zero Cachuma allocation to the Cachuma Member Units for WY 2023. However, due to above-average winter rains filling Lake Cachuma, the allocation was reassessed and amended to 100%, or 8,277 AF, in February 2023. On February 26, 2023, Bradbury Dam spilled for the first time since 2011, and the City lost approximately 16,500 AF of stored carryover water. The dam continued to spill, and surplus conditions remained through June 30, 2023. While in surplus conditions, all Cachuma water used by Cachuma Member Units, including the City, is not Council Agenda Report
Water Supply Update and Annual Water Supply Management Report January 23, 2024

Page 3 ends

counted against the current year’s allocation. The City used 2,226 AF of “free” surplus water. In total, Lake Cachuma’s supply in WY 2023 was 4,322 AF, or about 42% of water demand. Reclamation granted the City a 100% allocation for WY 2024. The City plans to use Lake Cachuma to supply approximately 55% of the City’s WY 2024 demand.

Gibraltar Reservoir
In WY 2023, the City received 2,232 AF of water from Gibraltar, including 528 AF from Devil’s Canyon Creek. Winter rains replenished a nearly empty reservoir, and a spill began on January 5, 2023, and ended on July 6, 2023. At the end of WY 2023, the City had resumed diversions from Gibraltar, and the reservoir was 54% full, with approximately 2,548 AF of stored water remaining. Gibraltar is expected to supply approximately 16% of the City’s WY 2024 demand. Siltation related to the 2007 Zaca Fire, the 2016 Rey Fire, and the 2017 Thomas Fire has resulted in a significant reduction in storage capacity in Gibraltar. A bathymetric survey performed in November 2022 indicates Gibraltar has a maximum storage capacity of 4,719 AF, which is approximately one-third of its original capacity. The continued reduction in storage capacity was the impetus for initiating the Pass-Through option under the 1989 Upper Santa Ynez River Operations Agreement (Pass-Through Agreement). A Warren Act Contract from Reclamation is needed before the City can fully implement the Pass-Through Agreement. Reclamation has yet to release the Warren Act Contract. Staff worked with Reclamation in 2019 to review and negotiate the draft Warren Act Contract language. Staff continues to wait for a response from Reclamation regarding outstanding issues.

Mission Tunnel
Groundwater that seeps into Mission Tunnel is an important part of the City’s water supply. The City received 1,481 AF, or 14% of its annual water demand, from Mission Tunnel infiltration in WY 2023. As a conservative estimate based on historical data, lower flows of 50 AF per month (600 AF per water year) are expected for WY 2024.

Groundwater
The City’s practice is to conjunctively use its groundwater basins by increasing pumping during droughts when surface water is limited. In response to recent drought conditions, increased groundwater pumping in WYs 2015 through 2018 provided an important water supply. The City has been resting its groundwater basins since the spring of 2017, and has relied more on surface water supplies and desalinated water. In WY 2022, in response to continued dry conditions, City wells were turned on from July through September, and produced 203 AF. Before the 2023 winter rains, the wells were used from October 2022 to January 2023, and produced a total of 375 AF in WY 2023. The City will continue to rest its groundwater basins and does not plan to use any groundwater in WYs 2024-2026. Based on the remaining estimated yield of the basins, groundwater resources are in long-term balance, and groundwater production does not exceed the estimated basin yield. The City has factored this into its water supply planning and does not plan to use groundwater supplies beyond the estimated remaining yield to ensure groundwater Council Agenda Report
Water Supply Update and Annual Water Supply Management Report January 23, 2024

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resources are kept in long-term balance. The City continues to monitor groundwater levels and water quality for seawater intrusion.

State Water Project
The City receives imported water from the SWP through the Central Coast Water Authority, a joint powers authority formed in 1991 to finance, construct, manage, and operate regional treatment and conveyance facilities delivering State water to member agencies, including the City. The 2023 SWP allocation was initially historically low at 5% of Table A contract amounts (165 AF). The City’s SWP allocation was increased to 100%, or 3,300 AF, after heavy rainfall in January 2023 across the State. In WY 2023, the City used zero AF of its SWP water. However, with the increased allocation, the City was able to pay off its remaining 2,000 AF of remaining water debt in the spring of 2023. The City exchanged 147 AF of SWP water for Cachuma allocation with the Sana Ynez River Water Conservation District, Improvement District No. 1, pursuant to the exchange agreement between both parties. Currently, the City has approximately 2,400 AF of 2023 SWP allocation stored in San Luis Reservoir. This water will convert to carryover water in January 2024, and has a high probability of spilling shortly thereafter. City staff has been working with the Central Coast Water Authority to identify sales or storage options for this water, but nothing has materialized because the system is so wet statewide, and demand for water is low. Staff conservatively estimates the City will receive a 35% SWP allocation for 2024, but does not plan to use any SWP in WY 2024.

Desalination
In response to the severity of the recent drought, the City reactivated the Charles E. Meyer Desalination Plant (Plant) in 2017, which has a production capacity of 3,125 AFY. The City-owned Plant is operated under a contract with IDE Americas. The Plant delivered 1,396 AF of desalinated water to the City’s water system in 2023.

In February 2021, Council changed the role of desalinated water within the City’s water supply portfolio from a drought relief/recovery supply to a drought preparedness, response, and recovery supply. Due to the continuous production of desalinated water since the Plant’s reactivation, the City has been able to store much of its Cachuma allocation in Lake Cachuma as carryover water. The City currently has nearly 8,000 AF of carryover water stored in Lake Cachuma on top of its WY 2024 allocation of 8,277 AF for a total of approximately 16,100 AF, which provides water supply security and stretches water supplies for future dry years.

Recycled Water
The City’s upgraded recycled water filtration plant went online on November 2, 2015, replacing the previous filtration plant constructed in 1989. The goal of this project was to eliminate or significantly reduce the need to use potable water for blending to meet Title 22 water quality requirements. In 2023, the City supplied recycled water customers with Council Agenda Report
Water Supply Update and Annual Water Supply Management Report January 23, 2024

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716 AF of recycled water and 15 AF of potable blend water, marking a continued significant reduction in potable water use due to the project. Recycled water is an important component of the City’s water supply portfolio since every drop of recycled water used to irrigate landscapes or flush toilets offsets potable water that would have been used instead. WY 2023 did have lower-than-average demands due to lower irrigation needs with the wet weather. Approximately 900 AF recycled water use is expected in WY 2024.

Water Conservation
In accordance with the 2020 Enhanced Urban Water Management Plan, the City’s Water Conservation Program functions to minimize the use of potable water supplies, meet the requirements of the California Water Efficiency Partnership Best Management Practices, and achieve compliance with State mandates. Water conservation measures are evaluated for cost-effectiveness based on the avoided cost of additional water supplies.

The City updated its Water Conservation Strategic Plan in 2020, including its adopted conservation measures and programs. In WY 2023, City customers continued to conserve water at high levels at 32% compared to 2013 pre-drought water demands.

Supply Summary
The total water supply produced in WY 2023 was 10,307 AF, with 83 gallons used per person per day. The community continues to make water conservation a way of life, with the total demand for water in 2023 comparable to demands in the late 1950s.

BUDGET/FINANCIAL INFORMATION:

This action has no financial/budget impact on the City.

SUSTAINABILITY IMPACT:

A diverse and reliable water supply is essential for sustaining the City. Groundwater resources are in long-term balance in accordance with the conjunctive management element of the City’s Enhanced Urban Water Management Plan.

ENVIRONMENTAL REVIEW:

Receiving water supply updates and approving and adopting a water supply management report are exempt from California Environmental Quality Act under California Water Code § 10652.

WATER COMMISSION RECOMMENDATION:

The Water Supply Update was presented to the Water Commission on November 16, 2023, and the Annual Water Supply Management Report was presented on December 21, 2023. The Commission voted 5:0:0 in support of staff’s recommendations.

Council Agenda Report
Water Supply Update and Annual Water Supply Management Report January 23, 2024

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ATTACHMENT: 2023 Draft Water Supply Management Report
PREPARED BY: Joshua Haggmark, P.E., Water Resources Manager/DC/lm SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office

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City of Santa Barbara
Draft Water Supply Management Report
2023 Water Year (October 1, 2022 – September 30, 2023)
Water Resources Division, Public Works Department
January 23, 2024

INTRODUCTION
The City of Santa Barbara operates the water utility to provide water for its citizens, certain out-of-City areas, and visitors. Santa Barbara has an arid climate, so providing an adequate water supply requires careful management of water resources. The City has a diverse water supply portfolio, including local reservoirs (Lake Cachuma and Gibraltar Reservoir), groundwater, State Water Project water, desalination, and recycled water. The City also considers water conservation an important tool for balancing water supply and demand. The City's Enhanced Urban Water Management Plan (EUWMP) was adopted by City Council on June 29, 2021. The EUWMP details the City’s water supply and management strategy for the next 30 years.

This annual report summarizes the following information:

The status of water supplies at the end of the water year (WY) (September 30, 2023)
Water supply outlook
Water conservation and demand
Major capital projects that affect the City’s ability to provide safe clean water Significant issues that affect the security and reliability of the City’s water supplies Appendix A provides supplemental detail. Additional information about the City's water supply can be found on-line at: www.SantaBarbaraCA.gov/Water.

WATER SUPPLIES
The City has one of the most diverse water supply portfolios in the state, including local surface water; local groundwater (which includes water that seeps into Mission Tunnel); State Water Project water; desalinated seawater; and recycled water. Typically, most of the City’s demand is met by local surface water reservoirs, desalination, and recycled water, and is augmented as necessary by local groundwater and State Water Project water.

The City’s local surface water comes from Gibraltar Reservoir and Lake Cachuma, both located in the upper Santa Ynez River watershed. The inflow to these reservoirs is rainwater, so rainfall data for Gibraltar Reservoir has important water supply management implications. Figure 1 shows rainfall for the past ten years as compared to the 50-year average. Figure 2 provides additional historic rainfall information by showing 50 years of rainfall data, 50-year average rainfall, and 10-year average rainfall. Rainfall in the Santa Ynez River watershed during WY 2023, as measured at Gibraltar, was 232% of the 50- year rainfall average, with most of the rain falling during large storms in January, February, and March.

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Runoff generated by average rainfall is generally enough to fill Gibraltar; however, it typically takes above-average rainfall to produce any significant inflow to Cachuma.

Figure 1. 10-Year Rainfall History at Gibraltar Reservoir Figure 2. 50-Year Gibraltar Rainfall by Water Year
At the end of WY 2023, Lake Cachuma and Gibraltar were at approximately 93% and 54%, respectively, of their total capacities.

To enhance rainfall, the City has historically participated in the cloud-seeding program administered by the County of Santa Barbara. Minimal seeding was needed in fiscal year 2023 due to winter rains. The City does not plan to participate in cloud seeding during fiscal year 2024 because enhanced rainfall could result in Cachuma spilling again and the loss of Member Units’ stored carryover water.
0 10
20 30
40 50
60 70
10-Year Rainfall History at Gibraltar (inches/year)
50-year
Average:

28.01"
Average
2014-2023:

24.22"

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Table 1. summarizes the status of the City’s water supplies at year-end.

Table 1. End of Year Status of City Water Supplies
The Water Year runs from October 1 through September 30. All data is as of September 30, 2023.

Lake
Cachuma
Total Capacity: 192,978 AF
(2021 capacity revision surcharged to 753 feet spill elevation for fish release water) End of Year Storage: 179,436 AF (93% of total capacity) The City’s share of the Cachuma Project’s normal annual entitlement is 8,277 AF. The City’s final WY 2023 allocation was 100%. Bradbury dam spilled February 26, 2023, and spill conditions remained through June 30, 2023. The City lost approximately 16,500 AF of stored carryover water. Cachuma supply in WY 2023 was 4,322 AF, including 2,226 AF of “free” water used during surplus conditions. Water used during surplus conditions does not count against the City’s Cachuma allocation. Total carryover water for the City as of October 1, 2023 was 7,933 AF, and the City has over 16,000 AF of water in Cachuma, inclusive of the City’s WY 2024 allocation.

Gibraltar
Reservoir
/Devil’s
Canyon
Total Capacity: 4,693 AF (August 2021 survey)
End of Year Storage: 2,548 AF (54% of Total Capacity)
Gibraltar Reservoir spilled January 5, 2023 and spill conditions remained until July 6, 2023. Total deliveries from Gibraltar and Devil’s Canyon Creek in 2023 were 2,060 AF.

The projected long-term average supply from Gibraltar is 4,330 AF under Pass Through Operations1.

Mission
Tunnel
Groundwater that seeps into Mission Tunnel is an important part of the City’s water supply. Mission Tunnel provided 1,418 AF in WY 2023, about 126% of the long-term average of 1,125 AFY2.

GroundwaterThe City conjunctively manages its groundwater with its surface water supplies, providing for groundwater replenishment during wet years. Groundwater was pumped beginning in October 2022 and stopped after the January 2023 rains. Total groundwater use was 375 AF. The City continues to monitor water levels and seawater intrusion. The groundwater levels in the Foothill Basin are showing signs of recovery and are back to early 1990s levels.

State
Water
Project
The City has a 3,300 AF “Table A” allotment (with drought buffer), subject to availability.

In 2023, the State Water Project (SWP) allocation was 100%, or 3,300 AF for the City.

The Coastal Branch and Santa Ynez Extension of the SWP are in place to deliver the City’s water into Lake Cachuma. The City did not deliver any SWP for City usage in WY 2023, but did use 2,000 AF of its SWP water to pay off existing water debt. The City exchanged 147 AF with Santa Ynez River Water Conservation District, Improvement District No. 1 (ID#1) pursuant to the Exchange Agreement.

Desal The desalination plant was reactivated in May 2017 and serves as a drought preparedness, response, and recovery supply for the City. It produced and delivered 1,396 AF of water to the City’s distribution system in WY 2023, allowing the City to use less water from Lake Cachuma and store it as carryover water in preparation for the next dry period.

Recycled
Water
The City’s recycled water system serves parks, schools, golf courses, other large landscaped areas, and some public restrooms. Demand from the system was 731 AF, or 7% of the total customer water demand, plus 269 AF of process water at El Estero Water Resource Center (El Estero). In WY 2023, the recycled system demands were supplemented with 15 AF of potable blend water.
1 Stetson, 2013. Hydrologic Analysis of the Pass Through Operations at Gibraltar Reservoir. Prepared for the City of Santa Barbara. July 2013.
2 SWRCB et al., 2011. Final Environmental Impact Report for the Cachuma Project Water Rights Hearings.

Prepared for the State Water Resources Control Board. December 2011.

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MONITORING WATER SUPPLY AND DEMAND
In June 2021, City Council adopted the 2020 Enhanced Urban Water Management Plan (EUWMP). The EUWMP evaluates the City’s water supplies for adequacy and reliability and provides a long-term view of the City’s water supply management strategy for the next 30 years. Analysis of the City’s current water supply portfolio suggests the City currently has adequate supplies to meet demands, even under reduced supply scenarios, except during extended periods of drought when supplementary supplies or extraordinary conservation are needed. A triple-bottom line analysis was performed to measure the performance of a diverse range of possible future water supply portfolios against social, environmental, and financial criteria. Results of this analysis indicate that expanding the City’s Charles E. Meyer Desalination facility from a production capacity of 3,125 acre-feet per year (AFY) to 5,000 AFY is the City’s best performing new supply when balancing social, environmental, and financial criteria as part of an adaptive water management approach. The timing for expanding the desalination plant will depend on the pace of demand growth and the ongoing availability and reliability of existing supplies. The EUWMP outlines an Adaptive Implementation Plan (Figure 3) that prioritizes water conservation, leverages the City’s current supplies, and identifies supply and demand triggers and corresponding next steps to guide the City in adapting to future changes in water supply and demand conditions. The yellow star in Figure 3 represents the City’s supply and demand for WY 2024. Currently in Phase 1, staff is monitoring supplies and demands, and will notify Water Commission and City Council when it is time to move into Phase 2 and start planning for a new supply (expansion of the desalination facility).

Water demand has historically been measured by total water production, which is the total amount of supply from all sources needed to serve demands on the potable and recycled distribution systems. Figure 4 illustrates historical demands based on total water supply produced, including recycled water. Future demand projections from the EUWMP are shown in blue. Total water production was 10,038 AF for 2023 (excluding 269 AF of water produced for El Estero’s process demands). Past State requirements for water conservation established a “20% by 2020” target based on gallons used per capita per day (GPCD) for potable water use.

Figure 3. Adaptive Management Plan

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Figure 5 shows monthly potable water GPCD water use values, as well as a moving 12- month GPCD average. Average usage for 2023 was 83 GPCD - significantly lower than the City’s 2020 target of 117 GPCD. The State is currently in the final rule making process of developing new water use budgets for water suppliers that will include residential GPCD (R-GPCD), as part of the state’s 2018 “Making Water Conservation a California Way of Life” legislation3. The City’s R-GPCD has been added to the chart in green. The City’s 12- month average R-GPCD for 2023 was 56-GPCD. In both Figure 4 and Figure 5, demands show a decline beginning in 2014 in response to the Stage 2 and 3 drought conditions that instituted mandatory reductions of water use. GPCD and system production decreased over the course of WY 2023 compared to WY 2020 as heavy winter rains reduced irrigation demand for all customers.

Figure 4.
3 2018 Legislation on Water Conservation and Drought Planning Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman)

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Figure 5.

WATER SUPPLY OUTLOOK
Water year 2023 included an extremely wet winter with total rainfall at Gibraltar Reservoir of

61.8 inches, 237% of an average wet year. The City’s local surface water supplies, Lake Cachuma and Gibraltar Reservoir, both filled this winter. Heavy January and February rains in 2023 replenished Lake Cachuma to its maximum storage capacity of over 193,000 AF, with Bradbury dam spilling on February 26, 2023. The City lost approximately 16,500 AF of stored carryover water when the dam spilled but did enter surplus conditions through June 30, 2023. In surplus conditions, all Cachuma water used by Cachuma Member Units is not counted against their current year allocation, and the City utilized 2,226 AF of “free” surplus water. Cachuma storage was at 93% of capacity at the end of WY 2023. The U.S. Bureau of Reclamation (Reclamation) determines the Member Unit’s allocation for the upcoming water year. Reclamation granted the City a 100% allocation for WY 2024. The 2023 winter rains also filled Gibraltar reservoir and a spill began January 5, 2023 and ended July 6, 2023. In July 2023, water quality at Gibraltar improved following the winter storms, and the City began diversions from the reservoir. Utilizing Gibraltar water allowed for other water supply sources to receive needed maintenance (desal) or be saved in storage (Cachuma, groundwater). Gibraltar ended WY 2023 at 54% of capacity. Gibraltar Reservoir (excluding Devil’s Canyon Creek) supplied approximately 17%, or 1,700 AF, of the City’s water supply in WY 2023.

Figure 6 shows the current water supply strategy over a 15-year period. The first twelve years reflect actual water supply, and the last three years reflect projected water supply assuming drought conditions. Updates to the City’s water supply planning strategy are conservative. Under the planning scenario, there is little to no rainfall assumed for three

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years, resulting in no inflows into Lake Cachuma. As a result, a 100 percent Cachuma allocation is assumed for Water Year 2024 and 80 percent allocation is assumed for Water Years 2025 and 2026. A minimal amount of inflow – resulting in 1,000 AF of water supply in Water Years 2025 and 2026 – is assumed for Gibraltar Reservoir, since even below average rainfall can result in available Gibraltar supplies. The planning scenario also assumes that there are drought conditions statewide, which reduce the SWP water allocation to 35 percent in Water Years 2024 through 2026. The analysis also assumes the desalination plant is operated continuously through Water Year 2026 at an 80 percent production rate (2,500 AF). This conservative planning approach allows staff to evaluate if the City has sufficient water to meet demands under three additional years of extreme drought. The supply strategy reflects the management policies adopted in the 2020 EUWMP. The 2020 EUWMP addresses a new “historical drought of record” based on hydrological conditions from the most recent drought (2012-2019), with three additional drought years added to create a 10- year record drought.

Figure 6. Current Drought Water Supply Strategy
On June 21, 2022, the City Council implemented water conservation actions associated with a Stage Two Water Shortage Alert in response to California Governor Newson’s executive order declaring a statewide drought emergency and mandating that urban water suppliers move to a higher level of drought response. In response to the wet 2023 winter statewide, Governor Newsom rescinded the statewide emergency drought declaration per Executive Order N-5-2023, dated March 24, 2023. Santa Barbara rescinded its Stage Two Water Shortage Alert on June 13, 2023.

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CITY WATER CONSERVATION PROGRAM
In accordance with the EUWMP and the Water Conservation Strategic Plan, the Water Conservation Program is operated to minimize the use of potable water supplies, implement the best management practices of the U.S. Bureau of Reclamation, and achieve compliance with State-mandated water conservation targets. Water conservation measures are evaluated for cost effectiveness based on the avoided cost of additional water supplies. Highlights of the City’s Water Conservation Program include the following activities:

Conservation Hotline and Water Checkups: Customer service is provided to customers to analyze water use patterns, investigate high water use, troubleshoot leaks, provide recommendations for water efficiency, explain rate structure, and enroll in rebate programs. In WY 2023, 435 over-the-phone water consultations and 23 inperson Water Checkups were conducted.

Landscape Training: Lectures and workshops geared toward homeowners and landscape professionals, many are offered in conjunction with horticultural organizations and local irrigation stores. Trainings include Green Gardener classes, UCCE Master Gardener training, and Firewise Landscaping 101 with 151 participants in WY 2023.

Marketing and Outreach: Continued implementation of regional outreach through the Countywide Regional Water Efficiency Program. Highlights from WY 2023 include:
the 2023 WaterWise Garden Contest, countywide advertising about landscape transformations and irrigation repairs, Landscaper Survey, and new Garden Wise TV show episodes.

Water Education Program: Free take-home water efficiency kits and musical assemblies to highlight where the City’s water comes from and how to conserve it. 1,488 students were reached in WY 2023.

Rebate Program Participation: There were 28 high efficiency washing machine rebates, 71 mulch delivery rebates, 14 irrigation efficiency rebates (launched in January 2023), 10 Sustainable Lawn Replacement rebates (launched in January 2023), and 171 Flume water system device rebates in WY 2023.

CAPITAL PROJECTS
Staff continues work on a number of projects to improve the reliability and maintain quality of City water supplies:

Conveyance Pipeline (Desal Link): This new pipeline is part of a series of projects that will convey desalinated water from the City’s desalination plant to the City’s Cater Water Treatment Plant. Design of this project began in FY2019, and construction began 2021. Construction was completed in spring 2023 and the City is currently in the process of closing out the construction contract. The project will improve overall water system quality and provide the opportunity to convey desalinated water to the City’s entire service area, as well as other South Coast agencies.

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Desal Product Water Pump Station: This pump station is being upgraded so desalinated water can be pumped to the Cater Water Treatment Plant via the newly constructed Conveyance Pipeline and repurposed existing transmission mains.

Onsite construction has commenced, and the pump station is scheduled to start up in the summer of 2024. Piping modifications at Cater will also be needed as the final step to convey desalinated water into Cater’s finished water reservoir. These modifications are in the design phase. The project will improve the overall water system quality and provide the opportunity to convey desalinated water City-wide and to other South Coast water agencies.

Alameda Well Water Line: The Alameda Well Waterline Project will construct a new waterline to convey groundwater from the Alameda Groundwater Well to the Ortega Groundwater Treatment Plant for treatment, which will improve water quality and supply reliability for the City of Santa Barbara. This project is expected to be completed in the spring of 2024.

Aquifer Storage and Recovery Project: In August 2021 the State Water Resources Control Board approved pilot testing of the City’s Aquifer Storage and Recovery (ASR) Project. The ASR project consists of injecting potable drinking water into the Foothill Groundwater Basin through San Roque well to replenish the aquifer and store water in wet years and recover the water from the basin in drier years. After completing needed well repairs in 2022, the first two of three pilot injection phases were conducted in spring and summer 2023. The pilot to date has successfully injected and recovered 10 AF of water with no observed changes to groundwater quality. The final pilot phase will be conducted in 2024 followed by a 9-month period of continuous injection. Staff will seek long-term injection permitting of the well, which could inject up to 500 AF per year.

AMI: The City is working to enhance customer service offerings by implementing Automated Metering Infrastructure (AMI). AMI is a system of meters, communication networks, and software that transfers water usage information and service alerts over a secure, wireless network to a central database. This information will be used to prepare water bills, analyze water usage trends, provide customers with hourly water usage information, and notify customers of potential leaks. Set up of the AMI network and installation of AMI radios on customer meters is complete as of July 2023. The final phase of AMI implementation is launching the customer portal, WaterSmart.

Through WaterSmart, customers can receive leak alert emails, view their hourly water usage information, and view and pay their City utility bill online. WaterSmart will become available to all City utility customers in early 2024.

WATER SUPPLY ISSUES
There are a number of significant issues related to the City’s water supplies, which are discussed briefly below.

Cachuma Project State Water Rights Order: The U.S. Bureau of Reclamation (Reclamation) operates the Cachuma Project pursuant to a water rights permit issued by the State Water Resources Control Board (SWRCB). The project provides water to the City of Santa Barbara, Carpinteria Valley Water District, Goleta Water District, Montecito Water District, and Santa Ynez River Water Conservation District, Improvement District No. 1 (often referred to collectively as the Cachuma Member Units). The first water right permit for the Cachuma Project was issued in 1958. On September 17, 2019, the SWRCB adopted an order for a new water rights permit for the Cachuma Project. The current

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permit is the culmination of nearly 20 years of legal proceedings to protect water rights holders and address long-term declines in native Southern California steelhead populations in the Lower Santa Ynez River (downstream of Lake Cachuma’s Bradbury Dam). The new order requires higher downstream flows during wet years, which will reduce available storage in Lake Cachuma going into normal and dry years and a reduction in supplies available to Cachuma Member Units, including the City. The order also requires multiple operating plans from Reclamation. The Cachuma Conservation Release Board (CCRB), of which the City is a member, is providing technical (e.g., biological, hydrological) assistance to Reclamation in the development of these plans. In WY 2023, CCRB’s efforts focused on the Term 18 and Term 19 plans, which, respectively, identify how Reclamation will comply with multiple flow targets imposed in the water rights permit, and require Reclamation to study the effectiveness of the newly imposed higher wet-year flows on enhancing steelhead and its habitat downstream of Bradbury dam.

Cachuma Project Biological Opinion: In 2000, a Biological Opinion (BO) was issued by the National Marine Fisheries Service (NMFS) for Reclamation's operation and maintenance of Bradbury Dam (the Cachuma Project). NMFS is the federal agency that oversees protection of Southern California steelhead, which was federally listed as endangered in 1997. The BO addresses the effects of the Cachuma Project’s operations on steelhead and its designated critical habitat in accordance with Section 7 of the Endangered Species Act of 1973. Reclamation, in cooperation with the Cachuma Project Member Units, submitted a new Biological Assessment (BA) in 2013, which included proposed revisions to the Project operations to improve habitat conditions for steelhead while still maintaining water supplies. In 2016, NMFS issued a draft BO, for which the BA served as a basis document. Reclamation could not accept aspects of NMFS’s draft BO and submitted a new proposed operating plan and supporting BA in 2019. After additional exchange between the two federal agencies, Reclamation submitted a revised BA in December 2020 that incorporates the operating requirements of the 2019 Water Rights Order. CCRB is currently assisting Reclamation in responding to NMFS’s input and requests for additional information regarding the revised BA. When this revised BA is finalized, NMFS will use it to produce a new Biological Opinion that governs Cachuma Project operations. The desired outcome of this BO process is a non-jeopardy determination for steelhead by NMFS.

Similar to the State water rights decision, the new BO is important because it could affect Cachuma Project operations and the amount of water supply available to the City and other Cachuma members.

Cachuma Contract 2020: Since the construction of the Cachuma Project, the Santa Barbara County Water Agency (SBCWA) has been the nominal contractor with Reclamation. The SBCWA was formed in 1945 by the State Legislature to facilitate development of the Cachuma Project and to provide a water supply to the City of Santa Barbara, Carpinteria Valley Water District, Goleta Water District, Montecito Water District, Summerland Water District4, and Santa Ynez Water Conservation District Improvement District No. 1. The City and these districts are collectively known as the “Cachuma Member Units.” The SBCWA Act (Act), which created the SBCWA and specifies its powers, designates the County Board of Supervisors as the legislative body of the agency. The SBCWA’s authority is limited by the Act to supplying water to the Cachuma Member Units. 4 Summerland Water District was subsequently merged into the Montecito Water District.

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In 1949, the SBCWA entered into a long-term agreement with Reclamation for the development of the Cachuma Project and supplying water to the Cachuma Member Units (the Original Master Contract). Concurrently with the execution of the Original Master Contract, the SBCWA executed essentially identical water supply agreements with each of the Cachuma Member Units.

In the mid-1990s, the SBCWA, on behalf of the Cachuma Member Units, requested renewal of the Original Master Contract. The renewed Master Contract was entered into by the SBCWA “acting as agent of the Cachuma Member Units” in 1996 and was set to expire on September 30, 2020. The Cachuma Member Units are the beneficiaries of the water supplied by the Cachuma Project. They are responsible for paying for all Project costs and paid off the capital component of the Cachuma Project in 2015.

On May 2, 2017, the Santa Barbara County Board of Supervisors authorized its staff to initiate renewal of the Cachuma Contract with Reclamation. Reclamation has stated that they generally conduct the contract renewal process only with the direct contractor, SBCWA. However, given the unique connection that the Master Contract has with the Cachuma Member Units (e.g. Member Units are water recipients and are responsible for the associated payments to Reclamation), Reclamation determined it was appropriate for Cachuma Member Units to participate alongside the SBCWA in the technical and negotiation sessions for the contract renewal process.

After completing negotiations on a three-year extension and necessary environmental review, Reclamation signed an amendment to the contract with the SBCWA for water service from the Cachuma Project on September 28, 2020, extending the contract through September 30, 2023. Concurrently, on September 24, 2020, the Santa Barbara County Public Works Director signed the First Amendment to the City’s Cachuma Member Unit Agreement with the SBCWA to provide for continued delivery of water from the Cachuma Project to the City. The City’s contract with the County incorporates the same terms and conditions as the Master Contract three-year extension. In 2023, another short-term contract extension was created and the effort to develop a long-term Master Contract was once again postponed. The Second Amendment extends the contract through September 30, 2026. Reclamation has yet to schedule negotiations of another short-term contract extension.

A significant element of the long-term Master Contract negotiations will be carryover water.

Carryover water is annually allocated Cachuma water that has not been used by a Cachuma Member Unit in the year it was allocated. Historically, Member Units have been allowed to bank carryover water in Lake Cachuma until it is either used, or Lake Cachuma’s Bradbury Dam spills. During a spill event, banked carryover water spills first, and that spilled carryover water is lost. In WY 2023 the City lost approximately 16,500 AF of stored carryover water when Bradbury Dam spilled. Carryover water is an important water supply for the Cachuma Member Units, as it allows these water agencies to build up a drought buffer and also provides them the opportunity to better manage their various other water supplies. At the end of WY 2023 the City once again had just under 8,000 AF of carryover water, or approximately 80 percent of the City’s annual demand, stored in Lake Cachuma.

During the 2020 Master Contract extension discussions, Reclamation expressed a strong desire to limit, or cap, the amount of carryover water Cachuma Member Units can bank in Lake Cachuma. Such a substantial change would cause the Cachuma Member Units to

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reconsider how they manage their water supplies and would impact their ability to prepare for a drought. SBCWA staff has verbally stated that SBCWA supports the Cachuma Member Units desire to not limit carry over water. However, carryover water is likely to remain a point of concern for Reclamation and be a major component of long-term Master Contract negotiation.

Another significant element of the Master Contract negotiations will be the safe yield of Lake Cachuma. In June 2020 the SBCWA shared a draft study prepared by Stetson Engineers, Safe and Operational Yields of the Cachuma Project, with the Cachuma Member Units. Prior to completion of the draft study, SBCWA did not consult or confer with the Cachuma Member Units, and, upon review of the draft study, the Cachuma Member Units found it to be flawed in its approach, methodology and conclusions. The Cachuma Member Units sent a letter to the SBCWA stating their objections to the draft study in August 2020 and contracted with Woodard and Curran to develop their own safe yield study for Lake Cachuma. Results of the Cachuma Member Units’ study are being finalized.

The goal of this study is to analyze operating scenarios for effective management of the Cachuma Project under the current operational yield of the Project, 25,714 AFY, while meeting other beneficial uses of the Project, including downstream water rights obligations and environmental release requirements. Conclusions from this study are likely to be another important point of discussion in the long-term Master Contract negotiations.

Gibraltar Pass Through Operations: The 2007 Zaca Fire burned approximately 60% of the Gibraltar Reservoir watershed, which normally contributes up to 40% of the City’s water supply. On top of historical siltation, the additional sediment load resulting from the Zaca Fire reduced the reservoir’s storage capacity by 1,535 AF. The Rey Fire in Fall 2016 also burned within the Gibraltar watershed, which resulted in an additional loss of 303 AF. The full extent of change in reservoir capacity from the 2017 Thomas Fire is still unknown, as sediment will continue to make its way through the watershed and into the reservoir for several years. A bathymetric survey conducted in August of 2021 demonstrated an overall reduction of 275 AF since August of 2017, while the survey performed in November 2022 showed an increase in capacity from 2021 of 112 AF, for a maximum storage volume of 4,719 AF, demonstrating that years with high precipitation may serve to flush some of the sediment out of the reservoir.

In 1989, the City entered into the Upper Santa Ynez River Operations Agreement (the “Pass Through Agreement”) with other Santa Ynez River water agencies. The City agreed to defer its planned enlargement of Gibraltar Reservoir in exchange for provisions that would allow the City to “pass through” a portion of its Gibraltar water to Lake Cachuma for storage and delivery through Cachuma Project facilities. As a result of the Zaca Fire impacts to Gibraltar Reservoir, the City elected to commence the “pass through” phase of operations and is working with the Reclamation to negotiate a Warren Act Contract as the preferred approach for accounting for the City’s Pass Through water. To execute a Warren Act Contract, Reclamation must prepare an environmental assessment under the National Environmental Policy Act (NEPA). Reclamation released a draft environmental assessment (EA) that has gone through public review. The final EA has yet to be released by Reclamation. Staff worked with Reclamation in 2019 to review and negotiate draft Warren Act Contract language. Staff continues to wait for a response from Reclamation regarding outstanding EA issues. Reclamation has indicated that they are unlikely to finalize the Warren Act Contract until a new Biological Opinion is issued by NMFS. The Pass Through operations will allow the City to maximize its Gibraltar water rights, while the reservoir continues to lose capacity from sediment settling in the reservoir.

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State Water Project/Delta Issues: Significant issues include:

Delta Conveyance: The Sacramento-San Joaquin Delta is a critical conveyance link for all water moved from northern California to southern California by the SWP. However, the reliability of State Water supply is at risk due to drought, environmental restrictions, and seismic events. The Bay Delta Conservation Plan (BDCP) proposed a solution to balance coequal goals of water supply and environmental benefits. A Draft Environmental Impact Report (EIR) and Draft Environmental Impact Statement (EIS) for the BDCP were made available for public review from December 2013 to July 2014.

In April 2015, State and Federal agencies announced a new alternative which would replace the BDCP as the State’s proposed project. The new alternative reflected proposals by Governor Jerry Brown and the California Department of Water Resources to separate the conveyance facility and habitat restoration measures into two separate efforts: California WaterFix and California EcoRestore. These two efforts are a direct reflection of public comments on the BDCP EIR/EIS and fulfill the requirement of the 2009 Delta Reform Act to meet coequal goals.

On July 21, 2017, the DWR certified the Final EIR/EIS for the project, approved the California WaterFix (Alternative 4a), and filed a Notice of Determination with the Governor’s office. The California WaterFix included two large, four-story tall tunnels to carry fresh water from the Sacramento River under the Sacramento-San Joaquin Delta toward the intake stations for the SWP. The certification was a major milestone that came after more than a decade of analysis, review, and public comment.

In May 2019 the DWR began taking formal steps to withdraw proposed permits for the WaterFix project and begin a renewed environmental review and planning process for a smaller, single tunnel conveyance project, known as the Delta Conveyance Project. This action followed Governor Gavin Newsom’s executive order directing state agencies to develop a comprehensive statewide strategy to build a climate-resilient water system. Governor Newsom envisions a smaller, single tunnel through the Sacramento-San Joaquin Delta that would protect water supplies from sea-level rise and saltwater intrusion into the Delta, as well as earthquake risk. It will be designed to protect water supply reliability while limiting impacts on local Delta communities and fish. The Draft Environmental Impact Report was released in July 2022. Project approval will be considered after the conclusion of the environmental review process, which is not expected to conclude until 2024.

The Central Coast Water Authority (CCWA) is one of the 29 SWP contractors.

CCWA represents the Member Agencies on SWP matters. CCWA Member Agencies include the City, Santa Ynez River Water Conservation District Improvement District No. 1, City of Buellton, City of Santa Maria, Montecito Water District, Goleta Water District, City of Guadalupe, and Carpinteria Valley Water District. CCWA and its members have chosen not to participate in the new Delta Conveyance facility at this time. This does not preclude individual agencies from possibly purchasing SWP water from a participating SWP agency in the future.

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However, there are concerns that by not participating in the new Delta conveyance project, CCWA members will have less secure water banking opportunities in the state’s San Luis Reservoir. This is a result of the new Delta Conveyance project, which is anticipated to cause the San Luis Reservoir to spill more frequently (every other year versus every ten years, historically), resulting in a loss of available storage to CCWA. For this reason, CCWA undertook a Water Management Strategies Study to identify and evaluate cost-effective strategies to optimize the yield from the SWP. The report included recommendations for water management alternatives that CCWA is now investigating further, including groundwater banking and water exchanges and transfers that involve SWP water and other supplies. One interesting recommendation involves exploring a program to transfer excess Table A water between San Luis Obispo Flood Control and Water Conservation District (SLOFCWCD) and CCWA, since SLOFCWCD often has excess Table A water, but is limited in conveyance capacity, and CCWA has available conveyance capacity, but is often short in available Table A water in dry years. (Table A water is the amount of SWP water an agency has available, via contract, annually, subject to allocation percentages determined by DWR. The City’s Table A amount is 3,300 AFY). The City is actively engaged in evaluating the water management projects along with CCWA and focused on groundwater banking opportunities in WY 2023. This work is ongoing.

State Water Contract Assignment: The City of Santa Barbara receives imported water from the SWP through the CCWA. The CCWA is a JPA formed in 1991 to finance, construct, manage and operate regional treatment and conveyance facilities that deliver State Water to its member agencies, including the City of Santa Barbara.

While the CCWA is responsible for financial and operational management of regional SWP facilities, the CCWA does not hold the current State Water Contract with DWR. The State Water Contract with DWR was first executed in 1963 and is currently held by the SBCWA. On October 31, 2017, the Santa Barbara City Council authorized amending existing agreements with CCWA to effectuate the assignment of the State Water Contract from the County to CCWA. All of the CCWA member agencies have also provided such authorization. CCWA has also received written confirmation of DWR’s willingness to accept assignment of the contract to CCWA. CCWA has been trying to work with Santa Barbara County for the remaining approval to assign the contract to CCWA; however, the County Board of Supervisors has not taken any action to work toward contract reassignment.

Legal Action Against the County of Santa Barbara: In early 2021, the Department of Water Resources and many of the 29 individual State Water Project Contractors (including the Central Coast Water Authority through the Santa Barbara County Flood Control and Water Conservation District) executed an amendment to the State Water Project Contract, commonly referred to as the “Water Management Amendments.” These new contract amendments were designed to improve the flexibility and efficiency of buying and selling water across the SWP, allowing Member Agencies to better manage supplies during drought and climate challenges. They also provide significant financial benefits to CCWA and its Member Agencies by creating opportunities to either offset the expense of State Water for the benefit of their customers or help offset the cost of developing local supplies.

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While the County did execute the Water Management Amendments, they imposed significant and unreasonable conditions on sales and exchanges of state water, depriving the CCWA Member Agencies of the benefits of the new contract amendments. In June 2021, CCWA and each of its Member Agencies, including the City, filed a lawsuit against the County of Santa Barbara regarding management of the SWP. The lawsuit is ongoing.

Groundwater Management Plan: The City’s groundwater basins are relatively small, but groundwater plays an important role in meeting demand during drought and emergency periods. Located on the southern side of the Santa Ynez Mountains, groundwater and desalination are the City’s only existing potable water supplies that are truly local. This is important in case of a potential catastrophic interruption of one or both tunnels (Tecolote Tunnel and Mission Tunnel) that convey water supplies to the City through the Santa Ynez Mountains, such as in a seismic event.

The City relies on two groundwater basins for water supply, see Figure 7: the Foothill Basin and the Santa Barbara Basin, which is comprised of Storage Units I and III. The City maintains nine groundwater wells – seven in Storage Unit I, and two in Foothill.

Figure 7. Map of City Groundwater Basins
For decades, the City has been working with the United States Geological Survey (USGS) to monitor water levels and water quality of the groundwater basins and develop a detailed model to estimate the sustainable groundwater yield for use in the City’s water supply planning. The City has also adopted local ordinances regarding groundwater wells to protect the groundwater resource.

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In 2014, the State of California adopted the Sustainable Groundwater Management Act (SGMA). In addition, the State developed rankings of recognized groundwater basins based on their condition. For State-ranked “high” or “medium” priority basins, SGMA requires the formation of a local groundwater sustainability agency (GSA) and adoption of locally-based management plans. SGMA provides local GSAs with tools and authority to 1) require registration of groundwater wells, 2) measure and manage extractions, 3) require reports and assess fees, and 4) request revisions of basin boundaries.

The City’s groundwater basins are currently ranked by the State as “very low” priority. As a result, there is no current requirement to form a GSA or develop a groundwater management plan in order to be in compliance with SGMA. However, the EUWMP made several recommendations regarding groundwater management in the City:

1. The City should work with the USGS to update the City’s sustainable yield estimate and drought storage estimate for the Foothill Basin and Storage Unit I.

2. The City should prepare an annual report on the current basin conditions to inform annual water supply planning efforts. The City could consider creating a Groundwater Sustainability Plan (GSP) in accordance with SGMA, or an equivalent GSP that meets the City’s needs, but is outside of SGMA compliance and reporting requirements.

The City entered into a contract with USGS in 2022 to better define sustainable yield and drought storage for the City. This project is ongoing with an expected completion in 2024.

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Appendix A – Supplemental Water Supply Information
Groundwater Balance
Project conditions of the SWP require the City to use SWP water to offset any demonstrated groundwater basin overdraft. Under the EUWMP, the City uses groundwater conjunctively with surface supplies, such that significant groundwater use only occurs when surface supplies are reduced. In response to the unprecedented drought, groundwater pumping increased in Water Years 2015 through 2018, providing a critical water supply. In WY 2019, the City pumped two groundwater wells to help meet peak summer demand from May through August, producing 318 AF. In WY 2020 the City only pumped 22 AF of groundwater, and in WY 2021 the wells were exercised to maintain function, but no groundwater was produced in order to rest the groundwater basins. In WY 2022, in response to continued dry conditions, City wells were turned on July through September, producing 203 AF. Before the 2023 winter rains, the wells were used from October 2022 to January 2023, producing a total of 375 AF in WY 2023.

The estimated groundwater yield available to the City over a 5-year drought period, assuming no seawater intrusion, was originally based on numerical groundwater modeling performed by the United States Geological Survey (USGS) in 1998. In 2018, USGS updated their modeling efforts of the Santa Barbara (Storage Unit I) and Foothill Basins using a 10-year drought period and assuming some level of acceptable seawater intrusion.

Groundwater yield estimates in this report have been updated based on that more recent effort. As summarized in Table A-1, the estimated 10-year yield for City use is 16,090 AF in Storage Unit I and 8,130 AF in the Foothill Basin.

The City’s groundwater pumping over the last 12 years is shown in Table A-1. In addition, any significant City pumping from storage that occurred prior to the drought is also shown.

In normal conditions, the City limits pumping of Storage Unit I and the Foothill Basin to be equal or less than the City’s share of the perennial yield of the basins (assumed to be 800 AFY and 450 AFY, respectively). However, in 2005-2011, some additional pumping from Foothill Basin storage reserves was necessary to meet drinking water quality regulations prior to completion of the Cater Ozone project. To estimate the remaining groundwater storage available, the City’s actual pumping over the last twelve years was accounted for, as well as previous City pumping from storage (or pumping that exceeded its estimated share of the perennial yield). Based on the remaining yield, the City’s primary groundwater basins are in long-term balance with no overdraft projected in the next year. The City has factored this into its water supply planning such that the City does not plan to use groundwater beyond the estimated remaining storage yield to prevent overdraft conditions.

The City will continue to rest its groundwater basins and does not plan to use any groundwater in WY 2024.

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Table A-1 Groundwater Balance
Storage Unit 1 Basin
Estimated 10-Year Drought Storage Yield for City Use1: 16,090 AF City Groundwater Production last 12 years (October 2011 – September 2023): 6,410 AF Previous City Use of Groundwater Storage (October 2005 – September 2011)2: 0 AF Remaining Drought Storage Yield for City Use: 9,680AF
Projected City Groundwater Production for 2023: 0 AF
Foothill Basin
Estimated 10-Year Drought Storage Yield for City Use1: 8,130 AF City Groundwater Production last 12 years (October 2011 – September 2023): 3,574 AF Previous City Use of Groundwater Storage (October 2005-September 2011)2: 740 AF Remaining Drought Storage Yield for City Use: 3,816 AF
Projected City Groundwater Production for 2024: 0 AF
1 Nishikawa, Tracy, ed., 2018, Santa Barbara and Foothill groundwater basins geohydrology and optimal water resources management - developed using density dependent solute transport and optimization models: U.S. Geological Survey Scientific Investigations Report 2018-5059, 4 chap. (A-D), variously paged, https://doi.org/10.3133/sir20185059 2 This represents City pumping exceeding the assumed perennial yield available to the City, thereby drawing from stored groundwater reserves. The assumed perennial yield available to the City is 450 AFY from Foothill and 800 AFY from Storage Unit I (source: City of Santa Barbara 2015 Urban Water Management Plan). Note that in WYs 2008-2010, the City increased pumping from Foothill Basin to meet water quality regulations as required prior to completion of the Cater Ozone project.

The City uses non-potable groundwater from Valle Verde Well located in Storage Unit III to augment supply to the recycled water system as needed. The historical maximum annual pumping by the City from Storage Unit III is 216 AF, which occurred in 1990. The estimated average annual Storage Unit III yield available for use by the City is approximately 200 AFY. The City did not extract any water from Storage Unit III in WY 2023. Although the City does not plan on using any water from Valle Verde Well in WY 2024, the City may use the well as needed during short periods should the recycled water plant go offline for repair or maintenance.

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Projection of Supply Availability
Table A-2 summarizes the City's water supply sources and fulfills a requirement of the project conditions for the SWP. The Water Year 2023-2024 Supply Plan reflects a projected total demand of 12,012 AF including ~180 AF for El Estero process water.

Table A-2 Sources of Supply (AF)
Source of Supply
WY 2023
Original Supply
Plan
WY 2023
Actual
WY 2024
Supply Plan
(Projected)
Gibraltar Reservoir 0 1,704 1,800
Cachuma Project 4,821 4,322 6,060
Mission Tunnel 528 1,481 600
Devil's Canyon 0 356 0
Juncal Res. (300 AF from MWD) (w/ Cachuma) (w/ Cachuma) (w/ Cachuma) State Water/Water Purchases 0 0 0
Groundwater (potable)A 1,965 375 0
Desalination 2,323 1,396 2,496
Recycled WaterC 1,092 1,001 1,092
Groundwater (non-potable)A 0 0 0
Net Other SuppliesB-36 -328 -36
Total Production: 10,693 10,307 12,012
Total DemandD: 10,693 10,307 E 12,012
A The City uses potable groundwater supply from Storage Unit I and Foothill, and non-potable groundwater supply from Storage Unit III.

B Represents miscellaneous production sources (positive values) and water used from the distribution system for purposes such as transfers to adjacent water purveyors, potable water transfers to the recycled water system for blending, or groundwater recharge (negative values). WY 2023 actuals included 302 AF in transfers to a neighboring agency,15 AF of blend water, and 11 AF in groundwater recharge.

C Planned and actual recycled water demands include El Estero process water and blend water.

D Actual 2023 demand includes 9,306 AFY potable demand, 731 AFY recycled demand, and 269 AFY El Estero process demand.

E Total demands do not include the 1,430 AFY sold to Montecito Water District as part of the Water Sales Agreement. The demands in this table represent City demands only. WY 2024 projected demands assume no mandatory conservation.

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CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Public Hearing for the 2024 Downtown and Old Town Business Improvement Districts Assessments [Resolution]
RECOMMENDATION: That Council:

DISCUSSION:

The Downtown and Old Town Business Improvement Districts have provided marketing and promotional services for Downtown businesses for several decades. The merchants in both business improvement districts pay for these services through an assessment based on their business license fee, location, and type of business. The assessment revenue is collected each year by the City and then remitted to Downtown Santa Barbara.

Downtown Santa Barbara is a 501 (c) 3 organization that operates both improvement districts after merging with the Old Town Merchants Association in 2005.

The Downtown Business Improvement District serves businesses between Chapala and Anacapa Streets, from Ortega Street north to Micheltorena Street, as authorized under Municipal Code Section 4.39, which regulates Downtown Parking and Business Improvement Area charges. The Old Town Improvement District serves businesses between Chapala and Anacapa Streets, from Gutierrez Street north to Ortega Street, as Agenda Item No. 9
File Code No. 290.00
Council Agenda Report
Public Hearing for the 2024 Downtown and Old Town Business Improvement Districts Assessments [Resolution]
January 23, 2024

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authorized under Municipal Code 4.43 which regulates the Old Town Parking and Business Improvement Area charges.

On December 12, 2023, Council approved an annual assessment report and adopted a resolution of intention to levy an annual assessment for 2024, in accordance with state law. The annual report outlines the assessment to be levied and collected from businesses to pay for activities planned for the upcoming year with the estimated cost.

The report also provides the method and basis of the assessment in sufficient detail for business owners to estimate the assessment amount for their business. For the calendar year of 2024, there are no proposed changes to the boundaries or assessment rates in the Downtown and Old Town Improvement Districts. The annual assessment report is attached as an Exhibit to the Resolution.

On December 12, 2023, Council also set the date for the public hearing on January 23, 2024. Notices to levy and collect the assessment were mailed to all affected businesses in the districts, informing businesses of the public hearing where written or oral protests could be made.

Under state law, the City Council is required to conduct an annual public hearing to consider protests to renew the assessments. Prior to submittal of this report, staff received 32 protests from a total of 1,163 businesses in the Downtown District and 240 in the Old Town District. At the public hearing, the Council will confirm whether there is a lack of majority protest (protests received from business owners who pay 50% or more of the total assessments to be levied), and adopt a resolution to assess the rates in accordance with the annual report.

BUDGET/FINANCIAL INFORMATION:

The Downtown and Old Town Business Improvement District revenues are projected to be approximately $236,000 in business assessments to fund marketing and promotional activities for downtown businesses. On June 27, 2023, the City Council approved an annual agreement with Downtown Santa Barbara to provide $303,800 for marketing, promotion, and event planning services. Combined with other revenue sources, Downtown Santa Barbara has an estimated total budget of $754,020.

ATTACHMENT: 2024 Annual Report for the Downtown Business Improvement District and the Old Town Business Improvement District PREPARED BY: Brandon Beaudette, Senior Assistant to the City Administrator SUBMITTED BY: Sarah J. Knecht, Interim City Administrator APPROVED BY: City Administrator's Office
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Exhibit A
Downtown Organization of Santa Barbara, Inc.
2023-2024 Annual Report for the
Downtown Business Improvement District
and the Old Town Business Improvement District
This Annual Report from the Downtown Organization of Santa Barbara, Inc. dba Downtown Santa Barbara was prepared for the Santa Barbara City Council to review for the annual reauthorization of both the Downtown Santa Barbara Business Improvement District (Downtown BID) and the Old Town Business Improvement District (OTBID). This is the fifty-eighth year of operations for the two BIDs, managed under contract by Downtown Santa Barbara, a non-profit membership organization incorporated in 1966 whose purpose is to promote and protect the vitality of downtown Santa Barbara. This report is required by Section 36533 of the California Streets and Highways Code. This report is for both BIDs, commencing January 1, 2024 and ending December 31, 2024.

EXECUTIVE SUMMARY: Downtown Santa Barbara's relationship with the City of Santa Barbara is as vital now as at any point in the organization's long history. We have a contractual relationship with the City through a Promotions contract, a financial relationship through renewal and collection of BID fees, and a personal relationship through which we collaborate on ways to strengthen downtown Santa Barbara. Over the past almost three years, Downtown Santa Barbara's board and staff have been responsive to the needs of businesses who have been faced with the challenges of the pandemic and most recently severe rain storms and flooding. Our organization’s priority areas are the following: economic vitality; business retention, marketing and promotion; advocacy; activations and special events, and maintaining a clean, green, and safe downtown. Staff and committees have been reorganized based on the priority areas to promote and support businesses with the challenges of the pandemic. We have a keen focus on economic recovery and revitalization of our downtown and leveraging community relationships.

BACKGROUND: These two Downtown BIDs were established separately by ordinance, at different times and for different purposes, and therefore have slightly different formulas for their respective assessments.

MANAGEMENT SERVICES: Once the BIDs were established, the City of Santa Barbara contracted for their management and the provision of services with the Downtown Organization of Santa Barbara, Inc. The Downtown Organization then merged with the Old Town Business Association in 2004. The two BIDs have continued to operate separately in compliance with their respective ordinances. Their combined revenues support the operations and programs managed by the Downtown Santa Barbara organization, under the contract for BID services with the City of Santa Barbara.

DOWNTOWN BID BOUNDARIES: The Improvement Area is defined as follows in the original ordinance establishing the district: The business improvement area bounded by Attachment
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Anacapa, Chapala, Micheltorena, and Cota Streets.

OLD TOWN BID BOUNDARIES: The Improvement Area is defined as follows in the original ordinance establishing the district: The Business Improvement bounded by Anacapa, Chapala, Gutierrez and Ortega streets and businesses fronting on the area bounded by said streets and businesses fronting the intersections of said streets, except that the area north of the centerline of Ortega Street is not included.
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As required by California law, this combined Annual BID Report for the Downtown BID and the Old Town BID contains the following information:

1. Proposed Changes to the District Boundary:

There are no changes proposed to either the Downtown BID or the Old Town BID boundaries.

2. Planned Improvements and Activities for 2024:

The following Downtown Santa Barbara projects and programs are planned for 2024. 2020-2025 STRATEGIC PLAN

2.1 Strategic Plan – Review and update strategies to create a thriving, welcoming and clean, downtown in the face diverse challenges and changes, locally and nationally.

2.2 Committee Structure for DSB –Work to increase engagement of business owners and community members in the work of DSB through committee working groups.

2.3 Metrics for Success – Develop metrics for success for each priority area and track progress quarterly.

2.4 Downtown Master Planning Process - DSB will work with partners and the City to complete the design plan for downtown Santa Barbara and the reenvisioning of State Street as well as support the implementation of the plan.

2.5 Focus on Storytelling – Focus on telling the story of our downtown and the people who make it special- new businesses opening, old favorites thriving, food offerings for every palate, entertainment for all ages, buildings wearing the vibrant color of SB, and events inviting locals and tourists alike to experience anew our downtown.

MARKETING, COMMUNICATIONS, AND ADVERTISING

2.6 Website and Communications –Continuous updating of Downtown Santa Barbara website to include business member pages, event calendars, neighborhood shopping guide, business directory, video shopping tours and more. Continue to promote and leverage the downtown website, with additional outreach to downtown businesses to build their own pages, content, and to feature and showcase the new businesses and attractions.

2.7 Social Media: Continue to engage customers, the general public, and business members through all social media outlets offering individualized promotion to our 35,000+ Instagram followers with an annual reach of 1.3 million (impressions/views of the content).

2.8 Marketing/Media Campaigns – Provide year-round leadership and management services for advertising partnerships and trade with partner organizations, media outlets, and community service venues to leverage year-round promotions and retail activities. Strong social media efforts designed to raise awareness of downtown’s history, events, and businesses. We are looking at ways to re-vamp the “Downtown Business Spotlight" for 2023 to keep it fresh and address downtown issues. The Downtown Business Spotlight series has 4 | Page
been an interview series with downtown business owners in diverse industries in partnership with the Santa Barbara Independent marketed and distributed in print, Santa Barbara Independent e-newsletters, Downtown SB e-newsletters and social media and recorded for businesses to use as well.

2.9 Downtown Map & Guide – Expand visibility for more than 100,000 full color brochures, delivered year-round to hotels, destinations, cruise ship patrons, downtown events, California Visitor Center locations, and other visitor-oriented outlets.

2.10 Cruise Ship Volunteer Program and Visitor Outreach – Support with volunteer and staff hospitality services for cruise ship visits, in partnership with the Santa Barbara Waterfront, Visit Santa Barbara, and the South Coast Santa Barbara Chamber.

2.11 Marketing/Advertising for Major Festivals/Events –Provide marketing/social media support for other signature events (i.e. Solstice, Fiesta). Staging and production services on State Street in support of all community parade operations, and direct marketing to all downtown businesses.

2.12 Retail Promotions – Continue to expand Small Business Saturday, building on our prior success. Offer strategic retail-oriented events such as ShopTEMBER, to drive sales and attendance at key times as advised by the retail committee.

PROGRAMMING AND SPECIAL EVENTS

2.13 District and Community Promotion – Promote the various districts within our downtown. Manage year-round State Street flag display program with over 40 non-profit community partners. Develop new opportunities for entry into the program through reduced cost measures.

2.14 1st Thursday, ArtWalk–Year-round monthly program showcasing culture, art and music the vitality of downtown, and providing participation opportunities, marketing and promotion for retailers, galleries, wineries, and restaurants.

2.15 Annual Awards Breakfast – Design and produce our Annual Downtown Awards Breakfast Event: Highlighting deserving individuals and organizations in the following award categories: Business Champion of the Year, Volunteer of the Year, Citizen of the Year, Harriet Miller Youth Leadership Scholarship and Entrepreneur of the Year award.

2.16 Holiday Tree and Seasonal Programming –Secure sponsorship support to procure Holiday Tree and produce tree lighting ceremony, and diverse holiday activations, concerts and social media engagement in support of holiday shopping and programming.

2.17 Business District Holiday Décor Program – Partner with the city to implement the holiday décor program to include lighting on all palm and street trees; seasonal décor, window display contests among the merchants. 5 | Page

2.18 Downtown Networking Meetings – Continue to host downtown networking mixers to engage business owners and community leaders and provide opportunities to increase communication.

2.19 Rock the Block: Block Parties & Seasonal Activations– Host regular seasonal programming to increase activity in the downtown to include; block parties, concerts, art exhibits, fitness classes, fashion show, and family oriented activities.

BUSINESS RETENTION, OUTREACH, INVOLVEMENT, AND ADVOCACY

2.20. Outreach Materials and Mailings – Weekly e-newsletter highlighting downtown happenings and downtown businesses.

2.21 Online Calendar of Events: Businesses can add their happenings directly to an online calendar. These are featured on our website and populates our enewsletter and social media calendars.

2.22. Membership Portal: Businesses update their listings on the DSB website, and include different photos, descriptions, and contact info at any time. This is an important way to have locals and visitors and locals find downtown businesses. Tutorials and trainings offered.

2.23. Free Business 1 x 1 Strategy Calls by appointment are available with Downtown Santa Barbara staff and our partner organization business strategy specialists to support downtown businesses.

2.24. Business resources and trainings: DSB shares in Business Update e-newsletter educational resources in partnership with the Economic Development Collaborative, Women’s Economic Ventures and others.

2.25 Community Involvement and Engagement – Active participation in community, civic groups year-round.

2.26 Facilitation of Committees: Downtown Santa Barbara hosts a number of committees to support our downtown business community. They are accessible and open to all BID businesses to participate. Committees include: Marketing & Promotion, Retail, Food and Beverage, CBID meetings and other Adhoc Committees as needed.

2.27. Support of Downtown Events & Initiatives – Continue to work with organizers as conditions allow to promote and support downtown events and activations including: SBIFF, CycleMAYnia, the Summer Movie Series at the Santa Barbara Courthouse amongst others. Continue sponsorship of Pianos on State program and other arts programming on downtown art pads.

2.28 Economic Development –Further collaborative efforts with county-wide agencies to business retention, recovery, revitalization and economic development for our region.

2.29 Safety & Social Services Initiatives –Serve on the SB Act steering committee to support with mitigating issues around homelessness, Facilitate business engagement as part of the State Street and Waterfront Regional Action Plan on homelessness. Collaborate with businesses, the police department, 6 | Page
ambassadors program for outreach and education efforts to promote a safe and welcoming downtown environment.

ADMINISTRATION

2.30 Administrative Services – Continue to provide administrative services for all programs, services, events and marketing services provided to members.

2.31 Accounting Services – Continue to staff and administer all accounting, finance responsibilities for accounts payable, receivable, reports, etc.

3. Estimated Costs of BID-Related Improvements and Activities Proposed for 2024 PROJECTED BID ASSESSMENT EXPENSES for 2024
Expense Type BID Other Total
Program and Promotion Expense 91000 71990 162990
Salaries and Benefits 50000 412930 462933
Professional Services 70000 32000 104200
General and Administrative 25000 1100 23897
$236,000 $518,020 $ 754,020
NOTE: These financial summaries are limited to the operations and overhead of Downtown Santa Barbara.

PROJECTED DOWNTOWN ORGANIZATION EARNED NON-ASSESSMENT REVENUES FOR 2024
City Promotions Funding $303,800
Associate Membership Dues $3,500
Flag Admin Fees $19,000
Programs Income $125,800
Map and Brochure $19,800
Board Contributions $5,000
$476,900 Total
Projected Downtown Combined BIDs ASSESSMENT $236,000
Total Projected Revenues for 2024 $754,020

4. Method and Basis of Levying the Assessment Shall Continue as Follows:

The benefit assessments will be collected by the City in one installment. There are no proposed changes to the formulas or rates for the two Downtown BIDs as outlined in the 7 | Page
original establishment of the BIDs.

Old Town BID assessment formula:

Category Charge
Businesses located on State Street Equal to 100% of business license. Minimum of $100.00
Businesses not located on State Street Equal to 75% of business license. Minimum of $100.00
Automobile Sales and Service
Businesses
Businesses in Classification “B” of
Section 5.04.390 shall pay a maximum
charge of $600.00 per year
Other Businesses: Wholesale,
Professional, and Real Estate business
as shown in Category 5.04.400
$100.00
Downtown BID assessment formula:

Category Charge
Professionals Equal to 15% of business tax
paid. Minimum of $50.00
All Others Equal to 100% of business license.

5. Surplus Carryover from 2022:

There is not a surplus of assessment dollar funds being carried over from the FY 2023 budget; assessment dollars are spent first on services and programs to benefit the ratepayers for the BIDs before non-assessment dollars are spent.

6. Sources of Contributions From Other than Levied Assessments:

Downtown Santa Barbara generates other sources of funds and earned revenues through a variety of programs and third-party contracts for services. These include earned revenues from grants and sponsorships, a promotions contract with the city, ticket sales for events, flag administration fees, associate membership dues, advertising sales, and donations.

7. Prior Year Assessed Income Expenditures 2023
As of November 1, 2023 the total collected by the City of Santa Barbara and remitted to the Downtown Organization for the Old Town and Downtown BID in 2023 was $201,755.

The following services were provided as benefits to the ratepayers from January 2023 – December 2023.

Downtown website-
• Continually updated with event highlights, new events, shopping directory of businesses, business features via video, photos, press releases etc. • Average 50,000 visitors per quarter.
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Earned Media Features -
• Over 70 features in regional newspapers, tv stations, magazines etc.

Print Marketing -
• Produced and distributed Map and Guide.
• Advertisement buys in various local and regional publications. • Weekly ads in Voice Magazine and the Santa Barbara Independent, • Ad placement in California 101 Travelers Guide
• Created Shoptember marketing brochure and branded downtown tote bags • Monthly 1st Thursday ArtWalk Passport
Social Media -
• More than 200 businesses featured per quarter on Instagram and Facebook • Increased Instagram following from 35,000 to 40,000 Instagram followers with an annual reach of 1.5 million (impressions/views of the content).

Video Production -
• Developed and produced numerous videos for Downtown Santa Barbara social media, website, YouTube
E-Newsletters – Weekly e-newsletters to community and businesses including business highlights, programs, events, webinars, resources and more (average of 49% open rate)
State Street Flag Program – Full year of flags with new non-profit participants Business Outreach & Support –Business outreach, DSB Staff held hundreds of meetings with business leaders, property owners, and community leaders, educational webinars, pandemic relief and recovery efforts, business strategy sessions and more.

Business Openings, Ribbon Cuttings and Anniversary Celebrations - Promote the opening of new businesses with local officials, present placards and commemorative certificates for business anniversaries. Conduct new business orientation meetings and presentations.

Community Outreach – provided presentations to community groups about downtown issues and opportunities
Support of downtown initiatives – provided support, marketing, programming, and staff to downtown initiatives
Market and Promote Community Events - Worked with organizers to promote and support downtown events and activations including: SBIFF, CycleMAYnia, the Summer Movie Series at the Santa Barbara Courthouse, Pianos on State program, Brazillian Arts Day, Fall Festival, Youth Makers Market, and other arts programming on downtown art pads.
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DSB Produced Events -
• Annual Awards Ceremony (June)
• 1st Thursday ArtWalk Series, (every 1st Thursday of the month) • Small Business Saturday (November)
• Business Networking Mixers (quarterly)
• Downtown Live Art and Wine Tour (May)
• Rock the Block: Block Party Series (seasonally)
• Downtown Live: Concert Series (Seasonally)
• Holiday Tree Lighting Ceremony and Holiday Events series • Business Spotlight Series: Every other week regular Interview series featuring different business owners in collaboration with the Santa Barbara Independent Advocacy – Provided public testimony and/or comments and advocated for businesses on issues affecting downtown Santa Barbara such as homelessness, youth bicycling, outdoor dining and the future of State Street.

Convener - Monthly Board meetings with city and business leaders, Committee meetings including Marketing & Promotion, Government Relations, Safety, Food and Beverage Committee meeting, Downtown Activation & Events Meetings, Adhoc Committees as needed
Actively Participate in: State Street Advisory Committee, State Street Regional Action Plan on Homelessness, Old Spanish Days Fiesta meetings; International Downtown Association; California Downtown Association; Visit Santa Barbara; Summer Solstice; De la Guerra Plaza and Farmer’s Market, Bicycle Community, AIA Advocacy Committee, Community Environmental Council programming, Arts Advisory Committee, Downtown Housing conversations, and many more.

Professional Memberships:

Member: CDA, International Downtown Association, ICSC, NAWBO Questions about this report can be directed to:

Robin Elander
Executive Director
[email protected]
www.downtownsb.org
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA
BARBARA CONFIRMING THE FISCAL YEAR 2024

DOWNTOWN AND OLD TOWN BUSINESS IMPROVEMENT

DISTRICT ANNUAL ASSESSMENT REPORT AND

RENEWING THE DOWNTOWN BUSINESS

IMPROVEMENT DISTRICT AND OLD TOWN BUSINESS
IMPROVEMENT DISTRICT ASSESSMENTS FOR 2024
WHEREAS, pursuant to the California Streets and Highways Code, the Council conducted a public hearing to renew the 2023 Downtown Business Improvement District assessment (hereinafter referred to as Downtown BID), as established by Chapter 4.39 of the Santa Barbara Municipal Code, adopted on May 7, 1985; WHEREAS, pursuant to the California Streets and Highways Code, the Council conducted a public hearing to renew the 2024 Old Town Business Improvement District assessment (hereinafter referred to as Old Town BID), as established by Chapter 4.43 of the Santa Barbara Municipal Code, adopted on June 3, 1986; WHEREAS, Council considered all protests and confirmed a lack of a majority protests to levy a benefit assessment within Downtown BID and Old Town BID as described in the Fiscal Year 2024 Downtown and Old Town Business Improvement District Annual Assessment Report, attached as Exhibit A;
WHEREAS, the improvements and activities to be provided by Downtown Santa Barbara shall consist of marketing and promotional activities for the businesses in the Downtown area; and

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

1. The annual assessment shall begin on January 23, 2024.

2. The Fiscal Year 2024 Downtown and Old Town Business Improvement District Annual Assessment Report (Exhibit A) has been approved.

Downtown Business Improvement District
Assessment: The assessment will be collected on an annual basis by the City of Santa Barbara and remitted to Downtown Santa Barbara.

Category Charge
Professionals Equal to 15% of business tax paid.

Minimum of $50.00
All Others Equal to 100% of business license.

Boundaries: The area bounded by Anacapa, Chapala, Micheltorena and Ortega Streets, and includes businesses fronting on each street within or bounding the area, except the businesses located south of the centerline of Ortega Street.

Old Town Business Improvement District
Assessment: The assessment will be collected on an annual basis by the City of Santa Barbara and remitted to Downtown Santa Barbara.

Category Charge
Businesses located on State Street Equal to 100% of business license.

Minimum of $100.00
Businesses not located on State Street Equal to 75% of business license.

Minimum of $100.00
Automobile Sales and Service Businesses Businesses in Classification “B” of Section 5.04.390 shall pay a
maximum charge of $600.00 per year
Other Businesses: Wholesale, Professional,
and Real Estate business as shown in
Category 5.04.400
$100.00
Boundaries: The area bounded by Anacapa, Chapala, Gutierrez and Ortega Streets and businesses fronting on each street within or bounding the area, except businesses located north of the centerline of Ortega Street.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: January 23, 2024
TO: Mayor and Councilmembers
FROM: Housing and Human Services Division, Community Development Department
SUBJECT: Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street [Ordinance Introduction; Resolution]
RECOMMENDATION: That Council:

EXECUTIVE SUMMARY:

The Housing Authority of the City of Santa Barbara (HACSB) was created as an operating arm, but a legally distinct public entity, of the City in 1969. HACSB’s mission is to create safe, affordable, and quality housing opportunities for families and individuals while promoting self-sufficiency and neighborhood revitalization. For over 50 years, HACSB has been a valuable City partner, serving as both an award-winning Agenda Item No. 10
File Code No. 660.01
Council Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street [Ordinance Introduction; Resolution]
January 23, 2024

Page 2 ends

affordable housing developer and operator in the Santa Barbara community. The agency provides much-needed affordable housing opportunities for lower-income households. HACSB is seeking $6,000,000 in loan funding from the City to acquire property located at 3055 De La Vina Street (Attachment 1) to provide 34 studio apartments (33 units for tenants and a single manager’s unit) of permanent affordable housing for homeless individuals.

DISCUSSION:

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

Council Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street [Ordinance Introduction; Resolution]
January 23, 2024

Page 3 ends

Project Financing Summary
Project Costs:

Property Purchase Price $10,000,000 + closing costs
Renovation Costs 2,500,000
Soft Costs 500,000
Total: $13,000,000
Project Financing:

Santa Barbara Foundation Loan $2,000,000
HACSB Equity 5,000,000 + closing costs
City of Santa Barbara Loan 6,000,000
Total: $13,000,000
The total cost per unit is $382,353. Under the proposed funding, $176,471 of that cost per unit would be provided by the City under the proposed loan. This $176,471 per-unit cost is substantially less than the cost of building a new unit, which is $700,000 according to recent estimates.

City Loan
If approved, the proposed $6,000,000 City loan will have a 30-year term at three percent interest with a maturity date of 2054. Payments on the loan will be due on a “residual receipts” basis, meaning no payments will be due unless the net income of the project, after payment of necessary operating expenses and debt service, is sufficient to support payments. Due to the use of Section 8 vouchers for the project, payments are anticipated since rent will be charged for the units.

Santa Barbara County is designated as one of the disaster areas in the NHTF program; therefore, the state allocates extra funds to the area. Funding amounts can be up to $20 million per project. The proposed project falls within the per-unit cap determined by the California Tax Credit Allocation Committee limit of $387,116. Eligible activities include acquisition, rehabilitation, and permanent financing, all of which apply to this project. If awarded, the funding is provided in the form of a residual receipts loan, with an interest rate of zero percent and an initial 55-year minimum term. One hundred percent of the NHTF funds must benefit Extremely Low-Income households defined as at or below 30 percent Area Median Income or below the poverty line (whichever is greater) at move-in.

Council Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street [Ordinance Introduction; Resolution]
January 23, 2024

Page 4 ends

Applications were due December 28, 2023, and the awards are expected to be announced around May 2024. The construction start deadline is October 1, 2024, and all funding must be expended by October 1, 2027.

Conclusion
Staff supports the proposed loan request because this project would contribute to the City’s goals as outlined in the City’s General Plan 2023–2031 Housing Element, specifically Goal 2 – Prioritize Affordable Housing, Policy 2.1, which states, “Encourage and provide development opportunities and incentives to increase production of affordable housing,” as well as Goal 3 – Provide Housing Assistance, Policy 3.4, which states, “Support rental assistance and emergency rent relief to lower-income households, including those with extremely low-incomes, and encourage landlords and property managers to participate in the Section 8 Housing Choice Voucher Program.” The Housing Authority has an excellent record of providing and maintaining successful, innovative, efficient, and aesthetically pleasing projects that provide permanent housing opportunities to community members who would otherwise be unable to secure affordable housing. The agency has been a valuable partner with the City in many projects in the past and has delivered exceptional projects on time and within budget for well over 50 years.

Finance Committee met on January 23, 2024, and recommended that City Council approve the $6,000,000 loan agreement with HASB to acquire the property located at 3055 De La Vina Street. Staff requests that City Council, in turn, approve the loan in order to assist HACSB in providing valuable and much-needed permanent affordable housing units with support services for Extremely Low-Income, formerly homeless individuals in our community.

BUDGET/FINANCIAL INFORMATION:

Funding for the proposed $6,000,000 City loan will come from reserves in the City’s Affordable Housing fund, which has sufficient funds for this request. The Affordable Council Agenda Report
Loan to Housing Authority for $6,000,000 for Acquisition of Property Located at 3055 De La Vina Street [Ordinance Introduction; Resolution]
January 23, 2024

Page 5 ends

Housing Fund has approximately $15,000,000 in available reserves; if the recommended loan is approved, that amount will be reduced to $9,000,000.

0.65 percent of the overall TOT budget. The TBID reduction is anticipated to be approximately $1,000 in City TBID administration revenue and $35,000 in TBID revenue for Visit Santa Barbara.

ATTACHMENTS: 1. HACSB’s Request Letter

2. Property Information
PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office
November 20, 2023
Ms. Laura Dubbels
Housing and Human Services Manager
City of Santa Barbara Community Development
630 Garden Street
Santa Barbara, CA 93101
RE: FUNDING REQUEST FOR PURCHASE AND REHABILITATION OF 3055 DE LA VINA STREET Dear Laura: