Santa Barbara City Council
February 27, 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
Meagan Harmon
Oscar Gutierrez
Kristen W. Sneddon
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
FEBRUARY 27, 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.

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. 02/27/2024 Santa Barbara City Council Final Agenda Page 1 FEBRUARY 27, 2024 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Water and Wastewater Rate Studies Revenue Requirements (120.03)
Recommendation: That Finance Committee:

A. Receive a presentation on the City’s water and wastewater rate studies and the required rate revenue increases; and
B. Recommend that City Council direct staff to complete a cost-of-service analysis and return with a proposed rate notice.
02/27/2024 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: Peace Corps Week February 25 - March 2, 2024 (120.04)

CHANGES TO THE AGENDA

CONSENT CALENDAR

2. Subject: Minutes
Recommendation: That Council waive reading and approve the minutes for the regular meeting of October 24, 2023.

3. Subject: Amend Street Improvement and Permitting Requirements [Ordinance Adoption] (530.04)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Amending Chapter 22.44 Relating to Street Dedication and Improvement Requirements, Chapter 22.60 Relating to Permits for Work on Street and Sidewalks, Chapter 22.32 Relating to Building Numbering, Section 22.64.010 Relating to Gates Adjacent to Streets or Sidewalks, Section 27.08.010 Relating to Subdivision Requirements for Streets and Sidewalks, Section 10.56.010 Relating to Obstruction of Sidewalks, and by the Addition of Chapter 22.46 Relating to Acquisition of Property for Public Improvements.

4. Subject: Lease Amendment with Sanbros, LLC DBA The Harbor Restaurant, Located at 210 Stearns Wharf [Ordinance Adoption; Agreement] (570.03) Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Waterfront Director to Execute the Amendment to Lease Agreement No. 20,493 with Sanbros, LLC, Deferring Three Months Base Rent with Lease Terms Ending December 31, 2028, Commencing Upon the Effective Date of the Enabling Ordinance. 02/27/2024 Santa Barbara City Council Final Agenda Page 3

5. Subject: Corrected Headers in Table 30.20.030.B and Corrected Section Number 30.25.030 in Title 30 of the Santa Barbara Municipal Code Pertaining to the Average Unit-Size Density Incentive Program [Ordinance Introduction] (110.01)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code to Correct Clerical Errors in the Headers in Table

30.20.030.B and Section Number 30.25.030 Pertaining to the Average Unit-Size Density Incentive Program.

6. Subject: Rescission of the Prohibition of Natural Gas in New Construction [Ordinance Introduction] (640.04)
Recommendation: That Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara amending the Santa Barbara Municipal Code by repealing Chapter 22.120 Prohibiting Natural Gas Infrastructure in New Buildings; and
B. Direct staff to return to Council with recommendations for alternative pathways to achieve the City’s climate action goals for new buildings.

7. Subject: January 2024 Investment Report (260.02)
Recommendation: That Council accept the January 2024 Investment Report.

8. Subject: Second Contract Amendment with Architectural Resources Group in the amount of $20,400 for the Plaza del Mar Band Shell Repair Project [Agreement] (160.01)
Recommendation: That Council authorize the Parks and Recreation Director to execute a Second Amendment to the Agreement with Architectural Resources Group for the Plaza del Mar Band Shell Repair Project, Contract No. 26,895, in the amount of $20,400 for a total project expenditure authority of $121,250.

9. Subject: Third Amendment to the Workplace Investigations Services Agreement [Agreement] (160.03)
Recommendation: That Council authorize the City Administrator to execute a third amendment to Agreement No. 22300249/28,381 for special investigation services with Aisha Shelton Adam of Adam Investigations Counsel, P.C. to increase the not-to-exceed amount from $130,000 to $155,000 for services related to existing personnel matters.
02/27/2024 Santa Barbara City Council Final Agenda Page 4

10. Subject: HOME Tenant-Based Rental Assistance Grants [Agreement] (610.05)
Recommendation: That Council:

A. Approve a new agreement with New Beginnings Counseling Center in the amount of $500,000 using federal HOME Investment Partnerships Program (HOME) Funds to continue providing Tenant-Based Rental Assistance services;
B. Approve a new agreement with Transition House in the amount of $200,000 using HOME Funds to continue providing Tenant-Based Rental Assistance services;
C. Approve a new agreement with the Housing Authority of the City of Santa Barbara in the amount of $250,000, using HOME Funds to continue providing Tenant-Based Rental Assistance services; and
D. Authorize the Community Development Director to execute such agreements, amendments, and related documents, subject to approval as to form by the City Attorney.

11. Subject: City Administrator Employment Agreement [Agreement] (440.03) Recommendation: That Council approve and authorize the Mayor to execute an employment agreement with Kelly McAdoo to serve as the permanent City Administrator effective May 20, 2024.

12. Subject: Accept Donations from One805 for Thermal Imaging Cameras, Extrication Equipment, and Socks (520.03)
Recommendation: That Council accept donations from the One805 charity organization for thermal imaging cameras, a $10,000 donation for a batteryoperated extrication tool, and a donation of 106 socks for fire personnel.

REPORT FROM THE FINANCE COMMITTEE

PUBLIC COMMENT

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS
02/27/2024 Santa Barbara City Council Final Agenda Page 5

PUBLIC WORKS DEPARTMENT

13. Subject: Water and Wastewater Rate Studies Revenue Requirements (540.1) Recommendation: That Council:

A. Receive a presentation on the City’s water and wastewater rate studies and the required rate revenue increases; and
B. Direct staff to complete a cost-of-service analysis and return with a proposed rate notice.

14. Subject: Monthly Update on State Street Interim Operations (650.05) Recommendation: That Council receive an update on State Street Interim Operations and discuss, evaluate, and direct pilot program activities.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
DATE: February 27, 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_mq1ksXGjSUO_AUS_ECeKXQ Webinar ID: 897 1674 2326
Passcode: 373367
After registering, you will receive a confirmation email containing information about joining the webinar.
 Telephone: Dial 1-669-900-6833, Enter Webinar ID: 897 1674 2326 (press *9 to raise/lower hand; press *6 to mute/unmute) REMOTE PUBLIC COMMENT: Members of the public wishing to speak must “raise their hand” in the Zoom platform by selecting the virtual hand icon when their item is called. The keyboard shortcut for this is Alt+Y for Windows and Option+Y for Macs. City staff will activate the speaker’s microphone when the speaker’s name is called. The speaker will then need to unmute themselves. The keyboard shortcut for this is Alt+M for Windows or Command-Shift-A for Macs.

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

ITEM FOR CONSIDERATION:

Subject: Water and Wastewater Rate Studies Revenue Requirements Recommendation: That Finance Committee:

A. Receive a presentation on the City’s water and wastewater rate studies and the required rate revenue increases; and
B. Recommend that City Council direct staff to complete a cost-of-service analysis and return with a proposed rate notice.

File Code No. 120.03

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Finance Committee
FROM: Water Resources Division, Public Works Department SUBJECT: Water and Wastewater Rate Studies Revenue Requirements RECOMMENDATION: That Finance Committee:

A. Receive a presentation on the City’s water and wastewater rate studies and the required rate revenue increases; and
B. Recommend that City Council direct staff to complete a cost-of-service analysis and return with a proposed rate notice.

EXECUTIVE SUMMARY:

In accordance with State law, the Water Fund and Wastewater Fund revenues must be sufficient to meet the City’s expenditures for providing water and wastewater services.

Several factors are requiring an increase in funding such as: higher than anticipated inflation, revised methodologies for allocating costs for internal services, lower than anticipated water sales, and increasing policy reserves to keep pace with increasing capital costs. Below are the revenue requirement options for Water with staff recommending Option 2:

Option FY25 FY26 FY27 FY28
Water Option 1
Funds Planned Capital
Reserves at Policy

16.0% 12.0% 5.0% 5.0%
Water Option 2
Funds Planned Capital
Reserves Below Policy

12.0% 12.0% 9.0% 9.0%
Water Option 3
Reduced Capital
Reserves Below Policy

10.0% 9.5% 9.5% 9.5%
Agenda Item No. 1
File Code No. 120.03
Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

Below are the revenue requirement options for Wastewater with staff recommending Option 2:

Option FY25 FY26 FY27 FY28
Wastewater Option 1
Funds Planned Capital
Reserves Below Policy

12.0% 12.0% 12.0% 12.0%
Wastewater Option 2
Defers Planned Capital
Reserves Below Policy

10.5% 10.0% 10.0% 9.5%
Both staff-recommended options for Water and Wastewater result in funding planned capital needs while mitigating rate increases to customers by utilizing reserves. Reserves will return to policy levels by the end of the rate-setting period (FY28) for both funds.

DISCUSSION:

Background
The City regularly conducts water and wastewater rate studies, which include rate revenue projections for the next 10 years. On October 3, 2023, City Council approved a contract with HDR Engineering Inc. (HDR) to conduct a comprehensive study. The last water rate study was completed in 2021 and the last wastewater rate study was completed in 2022.

The City provides water and wastewater services to a population of 95,000, with a service area of 20 square miles. The City’s water and wastewater utilities depend on customer rate revenue to fund most of the operations, maintenance, and capital improvements needed to keep the utility functioning reliably and in compliance with federal and state regulations.

HDR is creating 10-year financial plans and multi-year rate studies for both water and wastewater with the intention to set rates for the next four fiscal years. A comprehensive rate study consists of three interrelated analyses to address the adequacy and equity of a utility’s rates: a revenue requirement analysis, a cost-of-service analysis, and a rate design analysis. The rate studies are currently in the revenue requirement analysis phase, in which staff and HDR determine the amount of revenue that must be generated from the proposed rates to sufficiently fund the costs of operations and maintenance, capital improvements, mandated standards, debt obligations, contributions to reserves, and other obligations. The projected costs and the revenues generated must be in line to meet the costs of the City’s water and wastewater systems.

As mentioned, some of the main drivers contributing to the rate increases include:
 Inflation outpaced assumptions in previous water and wastewater models for both operations & maintenance and capital.
 Significant increases in allocated costs for internal services (IT, Fleet).

Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

 Property and liability insurance rates increasing 20% and 17% annually over the rate-setting period.
 Reduction in water demand and thus revenues (10%) due to an above average wet winter in calendar 2023.
 Increased capital policy reserve minimum due to increased capital costs.

Reserves
The City’s Reserves Policy (Resolution No. 23-124, adopted on October 11, 2023) established guidelines regarding minimum reserve levels for the various City funds to ensure ongoing fiscal security. There are several types of reserves detailed below that apply to the Water Resources Enterprise funds:
 Disaster – calculated at 15% of the most recently adopted fiscal year operating expenditure budget. This reserve is restricted for use in addressing impacts of natural disasters, such as storms, fires, droughts, etc. and may be used only after other available funds are exhausted, including Contingency reserves. The use of this reserve requires Council action.
 Contingency – calculated at 10% of the most recently adopted fiscal year operating expenditure budget. This reserve may be used to address the fiscal impacts of unexpected events such as economic recession. The use of this reserve requires Council action.
 Capital – calculated at the lesser of 5% of the value of capital assets or the average of the planned capital program for the upcoming three years. This reserve is intended to address unexpected capital projects or unanticipated increases in capital project costs.
 Rate Stabilization – required by debt agreements, the minimum requirement is $1M for Wastewater and $2.9M for Water. These reserves are unique in that they can be considered revenue for the purpose of debt service coverage in a given year. Staff may make additional contributions to these reserves if there are anticipated threats to revenues, such as mandatory water conservation or other negative impacts on revenues.

For options where the proposed use of reserves brings reserves below Policy level, staff are recommending only the use of Capital Reserves. The recommendation is that Disaster, Contingency, and Rate Stabilization Reserves remain at Policy levels in all options. In addition, for all options, reserves will return to Policy levels by the end of the rate-setting period (FY28).

WATER
Three options have been developed for meeting the Water revenue requirement that balances the different levels of capital improvements and funding from reserves. It is important to note that before the recent spike in inflation, the 2021 water rate study identified the need for a 5% rate revenue increase in FY25, 4.5% in FY26, and 4% in FY27 and FY28.

Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

Option 1 – Fund the Planned Capital Program and Maintain Reserve Levels at City Policy The water system will need to maintain rates that support upcoming projects identified in the Water Distribution Infrastructure Plan and other capital improvements, including replacing ~2% or six miles of water mains annually. Approximately $178M in necessary capital investments in the water system have been identified over the four-year rate study period (FY25-28). A combination of financing (long-term borrowing) and pay-as-you-go funding will be utilized to meet these capital improvement needs in addition to the use of reserves at a level that will keep reserves at or above City policy.

Option 2 – Fund the Planned Capital Program and Allow Reserve Levels to Drop Below City Policy
This option includes the same planned capital program as Option 1 but funds the program using capital reserves to mitigate rate impacts. Under this option, capital reserves go below City policy by about $6M (~20%) before returning to City policy levels by the end of the rate-making period (FY28).

Option 3 – Reduce Water Main Replacement Funding and Allow Reserve Levels to Drop Below City Policy
This option reduces the Water Main Replacement Program funding by 17%, which equates to approximately five miles of mains annually, gradually restoring funding for the full six miles of replacement in the fourth year of the rate study. This will bring the necessary capital investments down to approximately $170M over the four-year rate study period (FY25-28). In addition to a combination of long-term borrowing and pay-asyou-go funding, this option uses capital reserves to mitigate rate impacts. Capital reserves drop below City policy by about $2.8M (~10%) before returning to City policy levels by the end of the rate-making period (FY28).

Analysis of the three options indicates the approximate annual revenue increases in the table below will be sufficient to meet the needs of the water system.

Option FY25 FY26 FY27 FY28
Water Option 1
Fully Funded Capital
Reserves at Policy

16.0% 12.0% 5.0% 5.0%
Water Option 2
Fully Funded Capital
Reserves Below Policy

12.0% 12.0% 9.0% 9.0%
Water Option 3
Reduced Capital
Reserves Below Policy

10.0% 9.5% 9.5% 9.5%
It is important to note that revenue increases do not equate to rate increases (or bill impacts) to individual customer classes of service. During the cost-of-service analysis phase of the project, the revenue requirements (e.g., costs) are proportionally distributed Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

to each customer class, which may result in rate increases that are lower and/or higher than the revenue requirement percent increase for each customer class.

Water Conservation
Water usage in FY23 was lower than in past years due to the wet winter the City experienced in early 2023. The unplanned drop in water use in FY23 resulted in a decrease in planned revenue of $4.6M. The Enhanced Urban Water Management Plan had anticipated around 3% increases in water use annually between WY2020-2027, which assumed some moderate growth in demand as the City emerges from the last drought, along with decreases in demand from typical water conservation associated with changes in landscaping and plumbing fixtures. However, rate increases of the magnitude proposed in this study and the recent wet winter are anticipated to keep water usage at relatively low levels. For this rate study, water usage is assumed to remain steady (similar to FY23) for the next four years. The model also assumes 0.5% annual growth in the number of customers within the multi-family customer class as a result of new developments.

Water Customer Class Prioritization
One aspect of creating the City’s volumetric water rates is assigning and distributing the City’s various water supplies to the different customer classes and tiers. The water sources are allocated based on priority levels set by the City Council. The highest priority customer tiers receive the least expensive sources of water. The current prioritization is as follows:

Existing Customer Class Prioritization
Customer Class/Tier Priority Usage (HCF) % of Total
Tier 1 Irrigation Agriculture 1 43,662 1.19%
Tier 1 Irrigation Recreation 2 46,360 1.26%
Tier 1 Single Family Residential 2 681,764 18.53%
Tier 1 Multi-Family Residential 2 819,235 22.27%
Tier 1 Commercial 3 665,981 18.10%
Tier 2 Single Family Residential 4 685,009 18.62%
Tier 2 Multi-Family Residential 4 203,482 5.53%
Tier 1 Irrigation Urban (Res/Comm) 4 94,672 2.57%
Tier 2 Commercial 5 120,122 3.27%
Tier 3 Single Family Residential 5 219,400 5.96%
Tier 3 Multi-Family Residential 5 67,879 1.85%
Tier 2 Irrigation Agriculture 5 688 0.02%
Tier 2 Irrigation Recreation 5 3,406 0.09%
Tier 2 Irrigation Urban (Res/Comm) 5 26,973 0.73%
Total 3,678,632 100%
Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

The residential customer classes have three tiers of service, reflecting basic health and sanitation water usage, discretionary water usage, and excessive water usage. Irrigation and commercial customer classes have two tiers of usage, reflecting water usage within their customized water budgets, and water usage above their budgets.

The effect of the current ranking shown in the above table is that water usage in tiers considered excessive use or outside the customer’s water budget are allocated to more expensive water sources, resulting in a higher $/HCF* rate. Staff recommendation is to retain this existing prioritization.
*HCF = Hundred Cubic Feet (1 HCF = 748 gallons)
Fixed vs. Volumetric
The City’s water rates consist of a fixed monthly service charge based on meter size, and volumetric charges based on metered customer water use. Historically, the City’s rate design has resulted in a collection of 30% of revenues through fixed charges and 70% of revenues through volumetric charges. It is considered both a water conservation and water rate affordability best management practice to keep fixed charges low so customers may control their bill to the greatest extent possible through their water use.

However, lower revenues from fixed charges create more revenue instability for the Water Fund. About 85% of Water Fund costs are fixed, so decreases in customer demand do not result in a reduction in these fixed operational costs. Therefore, the Water Fund must balance the ratio of revenues from fixed and volumetric rates while considering water conservation, affordability, and financial stability goals.

Staff does not recommend dropping the target percentage of revenue from fixed rates below 30%. This would make the Water Fund increasingly vulnerable to unexpected decreases in customer demand. Decreases in demand would result in decreased revenues and require unplanned use of reserves to cover costs, or delay maintenance and capital projects to reduce costs. In the long term, it is staff’s recommendation that the target revenue derived from fixed charges increase above 30% to elevate the financial stability of the Water Fund. However, as increased fixed charges could have an undesired affordability impact on low-income customers, staff does not recommend adjusting the target now. This adjustment to the target should be investigated following the implementation of low-income water rate affordability programs to help offset increases that would disproportionately impact low-income customers with low water use.

It is important to note that the revenue ratio from the fixed vs. volumetric rate components is a design target for the City’s rates. However, the rates proposed will be based on the cost-of-service analysis and the appropriate and proportionate allocation and distribution of costs to meet the intent of Proposition 218 and its requirements.

Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

WASTEWATER
Two options are presented for meeting the necessary revenue requirements for Wastewater, which balance different levels of capital improvements and funding from reserves. It is important to note the last rate study completed in 2022 anticipated the need for a 6.5% rate increase in FY25, and a 6% increase in FY26-28.

Option 1 – Fund the Planned Capital Program and Allow Reserve Levels to Drop Below City Policy
The wastewater system will need to maintain rates that support upcoming capital improvements to the collection and treatment systems and fund reserves to meet City policy levels. In FY24, reserves were used to balance the budget to offset the record-high inflationary impacts not captured in the existing rates. Approximately $69M in necessary capital investments have been identified over the four-year rate study period (FY25-FY28) which will be funded with a combination of financing (long-term borrowing), pay-as-yougo funding, and the use of capital reserves. Under this option, capital reserves dip below City policy by about $1M (10%) before returning to City policy levels by the end of the rate-making period (FY28).

Option 2 – Reduce Capital Funding and Allow Reserve Levels to Drop Below City Policy This option defers several capital projects totaling $6M to outside of the rate-setting period (FY25-FY28), including rehabilitation of six lift stations, the implementation of an Air Pollution Control District Master Plan, and collection system capacity improvements at the 101 Freeway and near Santa Barbara Junior High School. Funding for the Sanitary Sewer Overflow program is prioritized over this period. Approximately $63M in necessary capital investments have been identified over the four-year rate study period under this option which will be funded with a combination of financing (long-term borrowing), payas-you-go funding, and the use of capital reserves. Under this option, capital reserves drop below City policy by about $300K before returning to City policy levels by the end of the rate-making period (FY28).

Analysis of the two options indicates the approximate annual revenue increases in the table below will be sufficient to meet the needs of the wastewater system.

Option FY25 FY26 FY27 FY28
Wastewater Option 1
Fully Funded Capital
Reserves Below Policy

12.0% 12.0% 12.0% 12.0%
Wastewater Option 2
Defer Capital
Reserves Below Policy

10.5% 10.0% 10.0% 9.5%
It is important to note that revenue increases do not equate to rate increases, or bill impacts, to individual customer classes of service. During the cost-of-service analysis phase of the study, the revenue requirements (e.g., costs) are proportionally distributed Finance Committee Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

to each customer class, which may result in rate increases that are lower and/or higher than the revenue requirement percent increase for each customer class.

BUDGET/FINANCIAL INFORMATION:

The proposed revenue requirements ensure that both the Water and Wastewater Funds will remain solvent and continue to fund critical capital improvements and ongoing operations. The next step is the cost-of-service analysis, which determines how to equitably allocate the revenue requirements to the different customer classes.

WATER COMMISSION RECOMMENDATION:

This item was presented to the Water Commission on January 18, 2024, and February 15, 2024. The Commission voted 4:0:1 on February 15, 2024, in support of the following actions:
 Water revenue requirement Option 2,
 Wastewater revenue requirement Option 2,
 Maintain current Water customer class prioritization; and  Maintain the target balance of Water revenues at ~30% from fixed charges and ~70% from volumetric charges.

PREPARED BY: Joshua Haggmark, Water Resources Manager/GC/lm SUBMITTED BY: Clifford M. Maurer, Public Works Director APPROVED BY: City Administrator’s Office
Agenda Item No. 1
File Code No. 120.04
10/24/2023 Santa Barbara City Council Minutes Page 1 of 8

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
OCTOBER 24, 2023
COUNCIL CHAMBERS, 735 ANACAPA STREET

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

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Alejandra Gutierrez (2:15 p.m.), Oscar Gutierrez, Meagan Harmon (2:09 p.m.), Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: None.

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

CEREMONIAL ITEMS

1. Subject: National Arts & Humanities Month, October 2023 (120.04) Action: Mayor Rowse presented the proclamation to Sarah York-Rubin, who then presented the following speakers: Jennie Reinish, Adrienne de Guevara, Debra Herrick, Cheri Owen.

CHANGES TO THE AGENDA
City Administrator Rebecca Bjork announced that the following agenda item will not be heard by Council:

Agenda Item No. 2
10/24/2023 Santa Barbara City Council Minutes Page 2 of 8

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

Scheduling: Duration, 45 Minutes; anytime
Report: None anticipated
CONSENT CALENDAR (Item Nos. 2 – 6)
The title of the Resolution was read.

Motion:

Councilmembers Friedman/O. Gutierrez to approve the Consent Calendar as recommended.

Vote:

Unanimous roll call vote (Absent: Councilmembers Harmon, A. Gutierrez).

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

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

Action: Approved the recommendations; Resolution No. 23-129; Agreement 28,407 (October 24, 2023 Council Agenda Report and any attachments). 10/24/2023 Santa Barbara City Council Minutes Page 3 of 8

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

Action: Approved the recommendations; Agreement No.28,408 (October 24, 2023 Council Agenda Report and any attachments).

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

Action: Approved the recommendation; Agreement No. 28,431 (October 24, 2023 Council Agenda Report and any attachments).

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

Action: Approved the recommendation; Agreement No. 28,432 (October 24, 2023 Council Agenda Report and any attachments).

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

Action: Approved the recommendation (October 24, 2023 Council Agenda Report and any attachments).

This concluded the Consent Calendar.
10/24/2023 Santa Barbara City Council Minutes Page 4 of 8

REPORT FROM THE FINANCE COMMITTEE
Finance Committee Chair Friedman reported that Finance Committee considered and recommended that City Council approve the restructure of Santa Barbara Community Housing Corporation’s loan on property located at 821 Bath Street, and recommended Council adoption of a pension management policy and Section 115 Trust.

PUBLIC COMMENT
Members of the public: Cyndi Silverman; Faris Sanjakdar; Liron Brish; Ashley Miners; Cassandra Ensberg; Izzy Sawyer; Rabbi Evan Goodman; Ruth Bar-Shalom; Sullivan Israel; L Johanna Israel; Phyliss Cohen; Amy Katz.

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
Councilmember O. Gutierrez attended the following meeting or event: 1. Events and Festivals Committee meeting; 2. Arts Advisory Committee meeting.

Councilmember Sneddon attended the following meeting or event: 1. Commented that taking the flags down is unacceptable; thanked the Jewish Federation for support of the community; 2. Water Commission meeting; 3. Dia de Los Muertos event at the Art Museum; 4. Riviera Association meeting with Mayor Rowse; 5. Upper East Association;

6. State Street Advisory Committee; 7. COMB meeting.

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ATTORNEY

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

The title of the Resolution was read.

Documents:
- October 24, 2023, report from the City Attorney.
- PowerPoint presentation prepared and made by staff.
- Proposed Resolution.
10/24/2023 Santa Barbara City Council Minutes Page 5 of 8 Speakers:
- Staff: City Attorney Sarah Knecht.
- Members of the public: Daquiri Beebe.

Discussion:
- Councilmembers’ questions were answered.

Motion:

Councilmembers Sneddon/A. Gutierrez to approve the recommended action.

Vote:

Unanimous roll call vote; Resolution No. 23-130.

PUBLIC WORKS DEPARTMENT

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

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

Documents:
- October 24, 2023, report from the Public Works Director. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: Public Works Director Clifford Maurer; City Engineer Brian D’Amour; Assistant City Attorney Dan Hentschke.
- Members of the public: Margaret Crocco.

Discussion:
- Councilmembers’ questions were answered.

Motion:

Councilmembers Jordan/Friedman to approve the recommended actions.

Vote:

Unanimous roll call vote.
10/24/2023 Santa Barbara City Council Minutes Page 6 of 8

MAYOR AND COUNCIL REPORTS

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

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

Documents:
- October 24, 2023, report from the City Administrator.

Speakers:
- Staff: Deputy City Clerk Niko Lopez.
- Members of the Public: None.

Applicant Speakers: Committee:

David Rowell Housing Authority Commission
Michael Rassler Access Advisory Committee

CHANGES TO THE AGENDA
The Mayor announced that the closed session will be heard before the completion of the Advisory Group interviews.

RECESS
Mayor Rowse recessed to closed session at 3:15 p.m. and stated that no reportable action is anticipated.
10/24/2023 Santa Barbara City Council Minutes Page 7 of 8

CLOSED SESSION

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

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

Time: 3:26 p.m. – 4:13 p.m.

Report: No report was made.

9. Subject: Interviews for City Advisory Groups (140.05) (CONT’D) Applicant Speakers: Committee:

Lee Heller Creeks Advisory Committee
Suzanne Tejada Access Advisory Committee
Margie Yahyavi Arts Advisory Committee
Chryss Yost Arts Advisory Committee
Alan Kasehagen Civil Service Commission
Jenna Hamilton-Rolle Community Dev. & Human Services Committee Chris Cline Creeks Advisory Committee
Andrew Newkirk Downtown Parking Committee
Merit McCrea Harbor Commission
Amber Noelle Harbor Commission
Stephanie Farmer Historic Landmarks Commission
Michael Drury Historic Landmarks Commission
Sophia Rasura Historic Landmarks Commission
Jacob Lesner-Buxton Parks and Recreation Commission
Donald DeLuccio Planning Commission
Leesa Beck Rental Housing Mediation Board

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
Councilmember Friedman attended the following meeting or event: 1. Sustainability Summit; 2. Airport Commission; 3. Coastal Cities committee meeting; 4. Harbor and Seafood Festival; 5. Sierra Club breakfast; 6. Sri Lanka Film Festival kickoff.

Councilmember O. Gutierrez attended the following meeting or event: 1. Boys and Girls Club event; 2. Brawling Bettys roller derby event.

PUBLIC COMMENT (IF NECESSARY)
10/24/2023 Santa Barbara City Council Minutes Page 8 of 8

ADJOURNMENT
Mayor Rowse adjourned the meeting at 5:06 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on February 27, 2024.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
1 ORDINANCE NO. _________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA AMENDING THE SANTA BARBARA MUNICIPAL
CODE BY AMENDING CHAPTER 22.44 RELATING TO STREET

DEDICATION AND IMPROVEMENT REQUIREMENTS,
CHAPTER 22.60 RELATING TO PERMITS FOR WORK ON
STREET AND SIDEWALKS, CHAPTER 22.32 RELATING TO
BUILDING NUMBERING, SECTION 22.64.010 RELATING TO

GATES ADJACENT TO STREET OR SIDEWALKS, SECTION

27.08.010 RELATING TO SUBDIVISION REQUIREMENTS FOR
STREETS AND SIDEWALKS, SECTION 10.56.010 RELATING TO

OBSTRUCTIONS OF SIDEWALKS, AND BY THE ADDITION OF
CHAPTER 22.46 RELATING TO ACQUISITION OF PROPERTY

FOR PUBLIC IMPROVEMENTS

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

Section 1. Chapter 22.44 of Title 22 of the Santa Barbara Municipal Code is amended to read as follows:

Chapter 22.44

STREET DEDICATION AND IMPROVEMENT REQUIREMENTS FOR BUILDING

PERMITS

22.44.005 Purpose and Definitions.

22.44.010 Dedication and Improvement Requirements.

22.44.020 Exceptions.

22.44.030 Dedication Procedure.

22.44.040 Improvement Procedure.

22.44.050 Issuance of Building Permits.

22.44.060 Lots Affected by Street Widening.

22.44.070 Improvement Standards.

22.44.080 Appeal.

22.44.005 Purpose and Definitions.

A. The purpose of this Chapter is to implement the Circulation Element of the General Plan, the Bicycle Master Plan, and the Pedestrian Master Plan by establishing requirements for dedication and improvement of public right of way in connection with the construction or reconstruction of buildings for which a building permit is required. The provisions of this Chapter are supplemental to the dedication and improvement requirements for the subdivision of property under Title 27 or as the condition of a development permit or approval under Title 28 or Title 30 of this Code.

Agenda Item No. 3
File Code No. 530.04
2 B. The following definitions apply to the interpretation of this Chapter:

1. NEW MAIN BUILDING. This includes any new main building, or substantial redevelopment (as defined in paragraph 7, below) of, or addition greater than 500 square feet to an existing main building, that requires a building permit under Chapter

22.04 of this Code for which the construction cost exceeds $100,000 as determined by building permit valuation.

2. PUBLIC IMPROVEMENTS. This includes sidewalks, parkways, gutters, pavement, driveways, curbs, streets, alleys, public utilities (including relocation of existing utilities), storm drain facilities, street lighting, fire protection installation, and pavement transitions.

3. PERSON. Any person, entity, firm, partnership, association, corporation, company or organization of any kind.

4. PUBLIC WORKS DIRECTOR. The Public Works Director and any employee of the Public Works Department to whom the Public Works Director has delegated authority to enforce or implement this Chapter.

5. .A person having legal or equitable title or other ownership interest to real property.

6. SIDEWALK CORRIDOR. The area from the boundary of the right-ofway and the edge of the closest curb or roadway if there is no curb. The Sidewalk Corridor contains four distinct zones: the Curb Zone, the Furnishings Zone, the Through Pedestrian Zone, and the Frontage Zone.
a. CURB ZONE defines the area between the sidewalk and the edge of the street pavement or gutter.
b. FURNISHING ZONE lies between the Curb Zone and the
Through Pedestrian Zone. All fixtures and street furniture must be contained in the Furnishing Zone to keep the Through Pedestrian Zone free for pedestrians. The Furnishing Zone may also include areas for the loading and unloading of persons or freight.
c. THROUGH PEDESTRIAN ZONE is the sidewalk area
intended for pedestrian travel and is located between the Furnishing Zone and Frontage Zone. This zone must be free of permanent and temporary objects. d. FRONTAGE ZONE is the area between the Through
Pedestrian Zone and the building. The frontage zone may exist on private property if unobstructed by buildings or by fences or walls greater than 42 inches in height.

7. SUBSTANTIAL REDEVELOPMENT. This has the meaning
described in Section 30.140.200 of this Code.

22.44.010 Dedication and Improvement Requirement.

A. Except as otherwise provided in this Chapter, no building permit may be issued for a new main building as defined in Section 22.44.005 B. 1. on any lot, unless one-half of the public street or dedicated street right-of-way abutting the lot has been dedicated and improved to meet the objective standards, conditions, and policies of this Chapter. If a lot is not located on a public street, the access for the lot must be improved to meet minimum vehicle access dimensions and surfacing standards of the California Fire Code as adopted under Section 8.04.010 and amended under Section 8.04.020 of 3 this Code, the City’s Parking Access and Design Standards, and the parking design standards established under Titles 28 or 30 of this Code.

B. As a condition to issuance of a building permit for construction of a new main building on a lot, the owner of the lot must have provided the rights-of-way necessary to meet the requirement of Subsection A of this Section by means of a deed, an irrevocable offer of dedication, or other appropriate conveyance instrument as approved by the City Attorney. Rights-of-way shall also be provided for any improvements to existing facilities, including rights-of-way for storm drains or other required public facilities. All rights-of-way dedications must be accompanied by a title examination and be free of all liens and encumbrances and a processing fee in an amount set by City Council resolution. The maximum area of land required to be dedicated shall not exceed 25% of the area of the lot.

C. As a condition to issuance of a building permit for a new main building on a lot, the owner of the lot must construct or cause to be constructed in accordance with city specifications upon the lot and along all street frontages adjoining the lot upon which the new main building will be constructed, unless adequate improvements already exist as determined by the Public Works Director.

D. No structure may be erected on a lot within the street right-of-way, area of an irrevocable offer of dedication, or the additional widening limits of street right-of-way as required by this Chapter, except pursuant to an encroachment permit issued pursuant to this Code.

E. New or altered street lighting, in accordance with Public Works Construction Standard Details is a required improvement for lots that are located at a corner of two or more intersecting public streets, or lots having 50% or more of the frontage of a block, or lots having at least 100 feet of street frontage, unless the Public Works Director determines that new or altered street lighting is not required because existing street lights are adequate for public safety or because of the circumstances of the neighborhood in which the lot is located. New or altered street lighting is not required for building permits on a lot having two or fewer residential units.

F. Buildings for which a complete building permit application was filed with the Community Development Department before March 6, 2024, will be subject to the dedication and improvement requirements of this Chapter in effect on the date of the application.

22.44.020 Exceptions.

A. The provisions of Section 22.44.010 shall not apply to the following:

1. Building permits for structures other than a new main building as defined in Section 22.44.010.

2. Building permits for single unit residential buildings located on a lot where the adjoining lots do not have an existing curb, gutter, and sidewalk.

B. The City Engineer may waive the requirement for construction of sidewalk improvements due to any of the following reasons:

1. It is in the City’s interest to include the sidewalk improvements in a pending street or utility construction project.
4 2. Construction of the sidewalk improvements would interfere with existing storm drainage or major public utility facilities and the relocation or reconstruction of the facilities is not reasonably feasible without the expenditure of public funds.

3. Construction of sidewalk improvements would require removal of a mature tree protected under Chapter 15.24.

4. Construction of sidewalk improvements would create a dangerous condition or is currently not in the public interest due to the grade, topography, or other conditions of the lot or adjacent lots.

5. Construction of the sidewalk improvements would adversely impact a historic structure or resource.

The City Engineer’s determination must be in writing stating the facts upon which the determination is made.

22.44.030 Dedication Procedure.

Any person required to dedicate land by the provisions of this Chapter shall make an irrevocable offer to dedicate or other appropriate conveyance instrument approved by the City Attorney and Public Works Director. The offer or other instrument must be properly executed by all parties of interest including beneficiaries and trustees in deeds of trust as shown by current preliminary title report prepared by a title company, approved by the City for that purpose and shall be in such terms as to be binding on the owner of the lot involved, the owner’s heirs, assignees or successors in interest. The City will not accept the offer of dedication or conveyance by other instrument before issuance of the building permit.

22.44.040 Improvement Procedure.

A. When the estimated cost of the public improvements required under Section

22.44.010 is $25,000 or less as determined by the City Engineer, the improvements must be constructed before the issuance of a final inspection or certificate of occupancy. When the cost of the public improvements required under Section 22.44.010 is greater than $25,000 as determined by the City Engineer, the work must be completed before the issuance of a final inspection or certificate of occupancy, or the owner may enter into a secured agreement to construct all required improvements by a later date is established by the Public Works Director in the secured agreement. The secured agreement must be in a form approved by the City Attorney. All improvements must be constructed pursuant to plans approved by the City Engineer.

B. An agreement to construct must be secured by one of the following:

1. A bond or bonds by one or more duly authorized corporate sureties authorized to do business in California, in a form approved by the City Attorney.

2. A with a responsible escrow agent or trust company approved by the City, of cash or negotiable instruments of the kind approved for securing deposits of public money.

3. An irrevocable letter of credit from one or more responsible financial institutions regulated by the federal or state government, pledging that the funds are guaranteed for payment on demand by the city, in a form approved by the City Attorney and from a financial institution approved by the Finance Director. 5 The security must be in an amount equal to the cost of the required improvements as estimated by the building permit applicant and approved by the City Engineer.

C. When a substantial proportion of the required improvement has been completed to the satisfaction of the City Engineer, and the completion of the remaining improvements is delayed due to conditions beyond the owner’s control, the Public Works Director may accept the completed portion and reduce the improvement security to account for the completed work; provided, however, that the security will not be reduced to less than an amount sufficient to cover the one year warranty obligation under Section

22.60.030.

D. The Public Works Director is authorized to administer and enforce this Chapter and to:

1. Execute improvement agreements, subject to approval as to form by the City Attorney.

2. Administer and enforce improvement agreements.

3. Accept and release security for improvement agreements.

4. Accept completed improvements upon recommendation by the City Engineer.

5. Complete improvements upon default of an improvement agreement either through City forces or by contract. Contracts under this provision may be let to any qualified contractor without a requirement for bidding.

6. Accept, or conditionally accept subject to completion of improvements, offers of dedication and other instruments conveying rights-of-way, in a form approved by the City Attorney.

22.44.050 Issuance of Building Permits.

A. A person applying for a building permit must pay a fee in an amount established by City Council resolution for the reasonable costs of administration of this Chapter and inspection of improvements.

B. When all dedication and improvements required by this Chapter have been completed or satisfactorily guaranteed as to completion, a building permit may be issued, provided all structural and zoning requirements directly applicable to the building permit have been satisfactorily complied with.

C. An entity exempt from the issuance of a building permit shall comply with the requirements of this Chapter before occupancy of a new building or substantial reconstruction of an existing building.

22.44.060 Lots Affected by Street Widening.

On a lot affected by street widening required by the provisions of this chapter, all required yards, setbacks, parking area, loading space and building locations for new buildings or structures or additions to buildings or structures shall be measured and calculated from the new lot line created by said widening; however, in applying all other provisions of this Chapter, the area of such lots shall be considered as that which existed immediately prior to such required street widening.
6 22.44.070 Public Improvement Standards.

A. The following dimensional street standards and improvements shall be applicable in the requirement for dedication and improvement, as required by this Chapter, and by the street deficiency study of the City made pursuant to Section 2156 of the Streets and Highways Code, on file in the Office of the Public Works Director, and shall include proposed street right-of-way to be acquired as well as existing street rightof-way. When this Section requires measurement from a curb face, the measurement will be taken from the existing face of curb, except in the case of a new street or where street widening is part of the improvements, in which case the measurement will be based on the new face of curb.

TABLE 22.44.070.A: Public Improvement Standards
Right
of
Way
Width
Standards Illustration
100
feet or
more
Each one-half of the street shall consist of not less
than 32 feet of paved section measured between
curb faces. The sidewalk corridor width shall be a
minimum of 15 feet including:
 6-inch curb,
 4 feet or more of furnishing zone,
 8 feet or more of through pedestrian zone,
and
 2.5 feet of frontage zone.

The frontage zone may be located on the lot
adjacent to the right-of-way. Where outdoor dining
seating is desired, the frontage zone may be
wider, so long as the through pedestrian zone is
maintained. The remaining right of way area may
be used as a portion of divider or median strip
width.
80 to
99 feet
Each one-half of the street shall consist of not less
than 30 feet of paved section measured from the
center line of pavement to the curb face. The
sidewalk corridor width shall be a minimum of 15
feet including:
 6-inch curb,
 4 feet of furnishing zone,
 8 feet of through pedestrian zone, and
 2.5 feet of frontage zone.

The frontage zone may be located on the lot
adjacent to the right of way. Where outdoor
dining seating is desired, the frontage zone
7 TABLE 22.44.070.A: Public Improvement Standards
Right
of
Way
Width
Standards Illustration
may be wider, so long as the through
pedestrian zone is maintained.
60 to
79 feet
Each half of the street shall consist of not less than
20 feet of pavement measured from the center line
of pavement to the curb face. The sidewalk
corridor width shall be a minimum of 12 feet
including:
 6-inch curb,
 4 feet of furnishing zone,
 6 feet of through pedestrian zone, and
 1.5 feet of frontage zone.

The frontage zone may be located on the lot
adjacent to the right of way.
50-59
feet
Each half of the street shall have a paved width of
not less than 17 feet measured from the center
line of pavement to the curb face. The sidewalk
corridor width shall be a minimum of 11 feet
including:
 6-inch curb,
 4 feet of furnishing zone,
 6 feet of through pedestrian zone, and
 6 inches of frontage zone.

The frontage zone may be located on the lot
adjacent to the right of way.

B. All construction of improvements required under this Chapter shall be done in accordance with the applicable provisions of the Public Works Construction Standard Details on file in the Public Works Department and pursuant to a permit issued under Chapter 22.60 of this Code.

C. The City Engineer may approve variations from the requirements of this Section as necessary because of conditions of the terrain and the existing improvements contiguous to the property involved.

22.44.080 Appeal.

Any person may appeal any determination of the Public Works Director made in connection with the administration and enforcement of the improvement provisions of this Chapter by making such appeal to the City Council pursuant to the provisions of Section

1.30.050 of this Code.
8 SECTION 2. Title 22 of the Santa Barbara Municipal Code is amended by adding Chapter 22.46 to read as follows:

Chapter 22.46

ACQUISITION OF PROPERTY FOR PUBLIC WORKS PROJECTS

22.44.010 Delegation of Authority

22.44.020 Compliance with Laws Governing Acquisition

22.44.030 Limitation

22.44.040 Acquisition by Eminent Domain

22.44.050 Scope

22.46.010 Delegation of Authority.

The Public Works Director may acquire real property necessary or convenient for an approved City project in accordance with the procedures established by this Chapter whenever the acquisition is consistent with any approved budget and funds have been appropriated. Inclusion of a capital project in an adopted budget constitutes authorization for the Public Works Director to acquire all real property necessary or convenient to implement the project subject to appropriation. A project subject to the California Environmental Quality Act or National Environmental Policy Act will not be deemed approved for the purposes of this Subsection until after completion of applicable environmental review.

22.46.020 Compliance with Laws Governing Acquisition.

The Public Works Director shall comply with applicable state or federal laws governing the acquisition of real property, including the relocation assistance act (California Government Code Section 7260 et seq.). Acquisitions under this Chapter must be for fair market value and by voluntary negotiation.

22.46.030 Limitation.

The Public Works Director may not acquire property contaminated with hazardous materials or hazardous waste unless a remediation plan has been approved by federal, state or local agencies with jurisdiction and the remediation plan will be implemented at the cost and liability of the person conveying the property, or unless the acquisition has otherwise been authorized by the City Council.

22.46.040 Acquisition by Eminent Domain.

When the City Council has adopted a resolution of necessity for acquisition of property by eminent domain, the Public Works Director and City Attorney are authorized to take all actions necessary to accomplish the acquisition, subject to appropriations.

22.46.050 Scope.

Acquisition of real property includes, without limitation, purchase, license, easements, acceptance of gift, dedication, or bequest, or any other lawful means of conveyance of any estate or interest in real property. The Public Works Director may execute, subject to approval as to form by the City Attorney, any contract, lease, 9 easement, deed, license, certificate of acceptance or other document necessary to accomplish the transfer to the City of any estate, interest, or right in land to implement the authority delegated under this Chapter. Leases of property shall not exceed 5 years unless separately approved by ordinance adopted under Charter Section 521.

SECTION 3. Chapter 22.60 of Title 22 of the Santa Barbara Municipal Code is amended to read as follows:

Chapter 22.60 STREETS AND SIDEWALKS

22.60.010 Definitions.

22.60.020 Permit Required, Issuance, Time for Completion.

22.60.030 Permit Required for House Moving or Heavy Load Transportation.

22.60.040 Fees for Permits.

22.60.050 Warranty of Work.

22.60.060 Standards of Materials and Workmanship.

22.60.070 Acceptance of Work.

22.60.080 Permittee’s Duty to Protect Work.

22.60.090 Closing Access Openings in Sidewalks - Generally.

22.60.100 Notice to Close Access Opening - Appeal.

22.60.110 Barricading Street During Paving, Prohibition of Parking, Detour of Traffic - Generally.

22.60.120 Replacing Pavement.

22.60.130 Improvements and Construction Requirements for Subdivisions.

22.60.140 Completion of Street Construction Before Issuance of Building Permit.

22.60.150 Permit Required for Joining Private Street to Official Street System.

22.60.160 City Personnel to Exert No Dominion Over Private Streets.

22.60.010 Definitions.

For the purpose of this Chapter the following words shall have the meaning indicated:

A. CONTRACTOR.A contractor licensed in accordance with Chapter 9 of Division 3 of the Business and Professions Code (Contractors License Law) of the State of California.

B. PERMITEE.A person who has obtained a permit under this Chapter.

C. PERSON. Any person, entity, firm, partnership, association, corporation, company or organization of any kind, except an employee or contractor of the City performing work within the scope of their employment or retained services.

D. PUBLIC WORKS DIRECTOR. Includes the Public Works Director and any employee of the Public Works Department to whom the Public Works Director has delegated authority to enforce or implement this Chapter.

E. PUBLIC WORKS CONSTRUCTION STANDARD DETAILS. The most current plans, drawings, diagrams, specifications, and other standards for construction of public improvements approved by the City Engineer and Public Works Director and on file in the Public Works Department.

F. WORKING DAY. A day that City offices are open for business. 10 22.60.020 Permit Required, Issuance, Time for Completion.

A. No person shall construct, reconstruct, repair, remove, or replace any pavement, sidewalk, driveway, curb, gutter, or any other improvements in any public street, alley, court, right-of-way, utility easement, or public place within the City, or commence any excavation therein, or construct any improvements on public property, easements or rights-of-way owned or to be conveyed to the City without first making application for and obtaining a written permit from the Public Works Director to perform such work. The application must be accompanied by a fee in an amount established by City Council resolution.

B. Notwithstanding Subsection A, emergency repair work by public utilities or other excavation work necessary for the protection of the public safety may be commenced immediately; provided, however that the person must notify the Public Works Department before commencement of the work if feasible and not later than 24 hours after commencement of the work. Further, a complete application for a permit must be filed and the required fees paid, within three working days after commencement of work.

The provisions of this Subsection B do not apply to water and sewer connection work, which are subject to the requirements of Title 14 of this Code.

C. Permits under Section 22.60.020 will be issued only to:

1. A contractor with the appropriate classification required to perform the work for which the permit is issued; or

2. The owner of a single unit residence for the construction of a concrete sidewalk, driveway, curb and gutter adjacent to the parcel upon which said residence is located.

D. All work pursuant to a permit must be completed to the satisfaction of the City Engineer within 90 days after the date the permit is issued unless otherwise stated on the permit or extended in writing by the Public Works Director. All work must be performed according to the day, hour, and duration limits stated the permit and shall be diligently pursued from start to finish without suspension of work of more than 5 working days unless approved in writing by the Public Works Director.

E. A permittee must notify the Public Works Department and request inspection not less than 24 hours in advance of the commencement of work under a permit.

22.60.030 Permit Required for House Moving, or Heavy Load Transportation.

No person shall commence any house moving, or heavy load transportation until a vehicle haul route for that work has been approved by the Public Works Director. A heavy load is defined as greater than 20,000 pounds per axle or 34,000 pounds for tandem axles. A permit may also be required for vehicle haul routes for work as stated in the conditions of approval for a development project or grading permit.

22.60.040 Fees for Permits.

Permits fees under this Chapter will be established by resolution of the City Council in an amount not to exceed the reasonable cost of permit issuance and enforcement of this Chapter, including inspection costs. When a person fails to obtain a permit as required by Section 22.60.020, the person must pay an additional fee in the amount of the permit 11 established permit fee to cover the additional costs of enforcement, inspection, and permit issuance.

22.60.050 Warranty of Work.

A. If required by the Public Works Director, performance of work under a permit must be secured in a manner provided under Section 22.44.040, Subsection B. Every permit shall include a warranty that there will be no failure of any work performed under the permit. The warranty period is one year following completion and acceptance of the work. The warranty is in addition to any other warranty provided elsewhere by law. The permittee shall be exonerated from this warranty when it is determined, on appeal pursuant to Subsection C of this Section, that a failure of an improvement did not result from work performed by the permittee.

Whenever there is any failure of such work within said one-year period, the Public Works Department will give the permittee notice to repair such work to the satisfaction of the Public Works Department. A new one year warranty period shall commence to run with the completion of repairs to any work that has been reconstructed or repaired pursuant to notice by the City.

B. If the permittee fails to repair or correct the failed work within 48 hours or within a greater time that is specified in the above notice, the City will have the failed work repaired and the costs will be charged to and paid by the permittee within 30 days after receipt of a billing from the City. If the permittee does not pay said billing, or has not posted adequate security to guarantee payment of said billing upon determination of an appeal, the permittee shall not be entitled to a permit under this chapter.

C. A permittee may appeal any charges made under this chapter by filing a notice of appeal pursuant to the provisions of Section 1.30.050 of this code.

D. A permittee must notify the Public Works Department of any change of address within one year after the completion of any work under such permit so that there can be prompt notification regarding any failed work.

22.60.060 Standards of Materials and Workmanship.

The materials and workmanship of all improvements under a permit must conform to the Public Works Construction Standard Details. When required by Chapter 22.44, improvements must meet the dimension requirements of Section 22.44.080.

22.60.070 Acceptance of Work.

All work under a permit must be inspected and approved by the Public Works Director before acceptance by the City. The Public Works Director may require a permittee to remove or replace defective construction or materials removed or replaced before acceptance of the work. The warranty period under Section 22.60.050 will not begin until the work is finally accepted.

22.60.080 Permittee’s Duty to Protect Work.

The permittee shall adequately protect the work at all times and take all necessary precautions to prevent accidents during the progress thereof up to the time of final acceptance and shall hold the City, its officers and employees free and save them harmless from any and all liability arising directly or indirectly out of or on account of the 12 prosecution of the work performed under this Chapter. Protective measures shall include furnishing and maintaining adequate barriers, lights, signs, temporary bridges, guards, watchman and the maintenance of detours as the same may be required for the safe and satisfactory execution of the work and the protection of the public up to the final acceptance of the project. Surplus materials, equipment and debris shall be removed immediately following the completion of the work.

22.60.090 Closing Access Openings in Sidewalks.

The Public Works Director is authorized to inspect all existing driveways, entrances, entries and other access openings through curb lines to streets in the City, and when the use of adjacent property is abandoned, or consolidated with the use of other property, or changed in nature, so as to no longer require the driveway, entrance, entry or access for the use of the property, or creates an unsafe condition and there is alternative access to the property, the Public Works Director is authorized to close, or order the property owner to close, such openings by replacing curb, gutter, sidewalk or other work as necessary to restore normal pedestrian, parking and gutter use. The Public Works Director may require a property owner to close a driveway and restore curb, gutter, and sidewalk as a condition of issuance of a building permit for the property.

22.60.100 Notice to Close Access Opening – Appeal.

Except when closure is in connection with issuance of a building permit, the Public Works Director must give the owner of the property served by a driveway or other access 30 days’ written notice of the Director’s intention to take action under Section 22.60.090.

The notice must be given by first class mail, postage prepaid, to the property owner as shown on the last equalized assessment roll. The Public Works Director may also post notice on the property. The notice must advise the owner of the Director’s intended action and of the date by which the property owner may submit a request for a meeting with the Director to present reasons why the intended action should not be taken. If a property owner requests a meeting with the Director and is dissatisfied with the Director’s decision, the property owner may appeal the decision to the City Council under Section 1.30.050 of this Code.

22.60.110 Barricading Street During Paving, Prohibition of Parking, Detour of Traffic – Generally.

Whenever any street or portion of street in the City is being improved by grading, paving or other street improvement the Public Works Department may barricade and close such street or any portion of the street, prohibit parking thereon and detour traffic for such length of time as may be necessary to complete such work of improvement or allow such work of improvement to harden properly, set or become in condition for travel.

The Public Works Department shall place, or cause to be placed, barriers, obstructions, or legible notices to indicate the closed condition of the closed area.

22.60.120 Replacing Pavement.

No person shall remove, disturb or displace any part of the bituminous, concrete, or asphalt pavement of any street within the limits of the City for laying pipes or conduit, 13 repairing streets, or for any other purposes, unless pursuant to the Public Works Construction Standard Details.

22.60.130 Improvements and Construction Requirements for Subdivisions.

A. Each lot created by a subdivision as to which a tentative map is approved after December 16, 1986 shall front upon a public street constructed according to the applicable specifications for streets, unless (i) the lot is served by a private road, lane, drive or driveway which serves no more than two lots, or (ii) the advisory body or approval authority under Title 27 of this Code waives this requirement. All public street in a subdivision must meet the standards of Chapter 22.44 and be consistent with the Circulation Element of the General Plan, the Bicycle Master Plan, and the Pedestrian Master Plan. Private streets must, at a minimum, be improved as determined by the Fire Marshal to fire code standards as adopted under Section 8.04.010 and amended under Section 8.04.020 of this Code.

B. An application for a waiver shall be made as part of an application for a tentative parcel map or tentative map under Title 27 of this Code.

C. The advisory body or approval authority under Title 27 of this Code, shall consider that waiver request in connection with consideration of the tentative parcel map or tentative map.

D. A waiver may be granted upon a finding of all of the following:

1. The proposed roadway, lane, drive, or driveway will provide adequate access to the subject property and other properties using said roadway, lane, drive or driveway.

2. The proposed roadway, lane, drive or driveway and adjacent paved areas will provide adequate access for fire suppression vehicles as required by applicable fire regulations, including but not limited to, turnaround area, width, grade and construction.

3. There is adequate provision for maintenance of the proposed private road, lane, drive or driveway by either of the following:
a. There is a recorded agreement that provides for adequate maintenance of said road, lane, drive or driveway, or
b. The owner of the subject property has agreed to adequately maintain said private road, lane, drive or driveway and said agreement has been or will be recorded prior to recordation of the final or parcel map.

4. The waiver is in the best interests of the City and will improve the quality and reduce the impacts of the proposed development.

E. If a waiver is granted, the following conditions shall be imposed:

1. The owner must execute and cause to be recorded on form provided by the City, a waiver of the right to protest the formation of an assessment district proposed for the purpose of street, roadway or related improvements.

2. The private roads, lanes, drives and driveways permitted under this section shall be constructed and installed in compliance with the Subdivision Design and Improvement Standards approved by resolution of the City Council.

3. The proposed private road, lane, drive or driveway has been or will be constructed to the standard approved by the Public Works Director and if the road, lane, 14 drive or driveway has not been constructed, adequate improvement security to guarantee such construction has been given to the Public Works Department.

4. An agreement for maintenance of the proposed private road, lane, drive or driveway, subject to the review and approval of the Public Works Director and City Attorney, has been or will be recorded.

F. The advisory body or approval authority under Title 27 of this Code may impose other conditions on a waiver which are consistent with the intent and purposes of this Section.

22.60.140 Completion of Street Construction Before Issuance of Building Permit.

No building permit shall be granted for building construction upon new lots or parcels created by a subdivision under Title 27 of this Code until construction of required streets and private roads, lanes, drives and driveways has been completed or improvement security for such completion has been filed with and accepted by the Public Works Department, and in any event before issuance of a final inspection or certificate of occupancy.

22.60.150 Permit Required for Joining Private Street to Official Street System.

No street, lane, alley, way, road, right-of-way, passage or thoroughfare shall be connected with the official street system of the City, without a written permit therefor issued by the Public Works Department. The word “street” as used in this Section shall be defined as any lane, alley, way, road, right-of-way, passage or thoroughfare serving more than two separate lots or parcels.

22.60.160 City Personnel to Exert No Dominion Over Private Streets.

No officer, agent or employee of the City shall perform any repair, maintenance, upkeep, or take any remedial or corrective action, nor exert any dominion, control or jurisdiction, nor to do any act upon or in connection with any street, lane, alley, way, road, right-of-way, driveway, passage or thoroughfare in the City which is not an official street of the City, as designated upon the official street map of the City. This shall not be construed to prevent the Public Works Department from carrying on its service functions pursuant to its rules and regulations, or from installing mains and incidental facilities in any such street, lane, alley, way, road, right-of-way, driveway, passage or thoroughfare within specially granted easements for use of the subsurface thereof.

SECTION 4. Section 27.08.010 of Chapter 27.08 of Title 27 of the Santa Barbara Municipal Code is amended to read as follows:

27.08.010 General.

A. The subdivider shall provide for the construction and installation of all improvements in the subdivision.

B. The improvements shall be constructed and installed in compliance with the Subdivision Design and Improvement Standards prescribed by resolution of the City Council which standards are incorporated herein by reference. Said standards have been prepared in booklet form and are available for public use and examination in the Office of the City Clerk.
15 C. All public street in a subdivision must meet the standards of Chapter 22.44 and be consistent with the Circulation Element of the General Plan, the Bicycle Master Plan, and the Pedestrian Master Plan. Private streets must, at a minimum, be improved to meet minimum vehicle access and surfacing standards of the California Fire Code as adopted under Section 8.04.010 and amended under Section 8.04.020 of this Code, the City’s Parking Access and Design Standards, and the parking design standards in the established under Titles 28 or 30 of this Code as determined by the Fire Marshal to fire code standards as adopted under Section 8.04.010 and amended under Section 8.04.020 of this Code.

SECTION 5. Chapter 22.32 of Title 22 of the Santa Barbara Municipal Code is amended to read as follows:

NUMBERING BUILDINGS
Sections:

22.32.010 Assignment of Numbers.

22.32.020 Failure to Place Number Unlawful.

22.32.030 Size, Color and Location of Numbers.

22.32.040 Numbering System Generally.

22.32.010 Assignment of Numbers.

The City Engineer shall have charge of the matter of numbering houses, buildings, unit, and other property. The property owner is responsible for posting the number assigned by the City Engineer. The City Engineer may order a property owner to place the number for a house, building, unit, or other property as required by this Chapter. The City Engineer may give the order to the owner in writing, by first class mail, postage prepaid, to the owner at the address as shown on the last equalized assessment roll.

22.32.020 Failure to Place Number Unlawful.

It is unlawful for an owner of property to fail to place a number upon a building or separately addressed unit within 10 days from the giving of the notice under Section

22.32.010.

22.32.030 Size, Color and Location of Numbers.

The numbers required by this chapter shall meet the requirements of the California Building Code and shall be so located that they are clearly visible from the street. The numbers shall be in a color contrasting to the background on which they are placed.

22.32.040 Numbering System Generally.

All houses, buildings and developed lots fronting on streets or public thoroughfares shall be numbered in the following manner:

A. Beginning at State Street the lots, houses and buildings shall be numbered consecutively to the City limits on streets extending in northeasterly, northerly and southwesterly, southerly directions respectively. The even numbers shall be on the southeast or east side of streets running in a northeasterly or northerly direction 16 respectively from State Street and odd numbers shall be on the northwesterly or westerly sides respectively of such streets. On streets running in a southwesterly or southerly direction from State Street, even numbers shall be on the northwesterly and westerly sides and odd numbers on the southeasterly and easterly sides respectively of such streets. One hundred numbers shall be assigned to each block beginning with number one at the opposite sides of State Street.

B. Beginning at Quinientos Street, lots, houses and buildings shall be numbered consecutively to the City limits on streets extending in northwesterly and southeasterly directions respectively. On streets northwesterly of Quinientos Street and generally parallel to State Street, the numbers shall be even on the northeasterly or northerly sides and odd on the southwesterly or southerly sides. On streets southeasterly of Quinientos Street and generally parallel to the prolongation of the southerly end of State Street, the numbers shall be even on the southwesterly side and odd on northeasterly side. One hundred numbers shall be assigned for each block starting with the number one on opposite sides of Quinientos Street and the numbers southeasterly of Quinientos Street shall be followed by the letter S.

C. All avenues, alleys or other places occupied or used for residence or business purposes shall be numbered in a like manner, and the numbers shall correspond with the numbers in the block in which such avenues, alleys or places are situated.

D. Secondary addressing for individual unit numbers or letters in a house or building and formatting shall comply with the most current Postal Addressing Standards adopted by the United States Postal Service. The use of fractional numbers and other secondary addressing items that impact the United States Postal Service sorting operations is not permitted.

E. Addresses for electrical meter pedestals in the public right-of-way may be assigned an address that is not deliverable for mail per utility company requirements.

22.32.050 Mailboxes Generally.

Mailbox installations shall follow the United States Postal Service standards.

Roadway posts are permitted only in residential zones without sidewalks, unless otherwise authorized by the City Engineer. Mailboxes are subject to local postmaster approval and upon assignment of an address by the City Engineer, the property owner shall perform final registration steps with the Post Office to receive mail.

SECTION 6. Section 22.64.010 of Chapter 22.64 of Title 22 of the Santa Barbara Municipal Code is amended to read as follows:

22.64.010 Generally.

Each gate on or near the line of any public street or alley of the City shall be so hung that the same shall swing inward from such street or alley; or such gate shall be provided with a spring, or other arrangement, so as to make such gate self-closing, and so that the same shall not obstruct, or be liable to obstruct, the free use in the customary manner of any such street or alley, nor be, or liable to become inconvenient, injurious or dangerous to a person walking along any such street or alley, or the sidewalk. Gates must comply with the standards for placement and operation issued by the Public Works 17 Director and on file with the Public Works Department, and height setback limitations specified in Titles 28 or 30 as applicable.

SECTION 7. Section 10.56.010 of Chapter 10.56 of Title 10 of the Santa Barbara Municipal Code is amended to read as follows:

10.56.010 Impounding of Miscellaneous Property in Streets, Etc. Authorized - Nuisance.

A. Except when otherwise authorized by this Code or a permit issued by the Public Works Director, any item placed or left in the through pedestrian zone of a sidewalk as defined in Section 22.44.005 B. 6. c. of this Code in a manner that interferes with the unobstructed use of the sidewalk is a public nuisance subject to immediate removal or impoundment by any employee of the Public Works Department.

B. In the event any property of any description, except a vehicle, whether an animal or other obstruction, shall be found existing, standing, parked, erected or lying in or upon any part of any public street, avenue, alley, sidewalk, thoroughfare, parkway, park or other public place within the City in violation of and contrary to any of the rules, regulations and ordinances of the City that are in effect, it is hereby declared to be a nuisance, and may be removed and conveyed by or under the direction of the Community Development Director, Public Works Director or a member of the Police Department, or a duly constituted agent thereof, to a designated place of impounding, to be kept until redeemed or sold as provided in this Chapter.

ORDINANCE NO._____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING AND AUTHORIZING THE

WATERFRONT DIRECTOR TO EXECUTE THE
AMENDMENT TO LEASE AGREEMENT NO. 20,493 WITH

SANBROS, LLC, DEFERRING THREE MONTHS BASE
RENT WITH LEASE TERMS ENDING DECEMBER 31, 2028,

COMMENCING UPON THE EFFECTIVE DATE OF THE
ENABLING ORDINANCE.

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

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, An Ordinance of the Council of the City of Santa Barbara Approving the Amendment to Lease Agreement No. 20,493 With Sanbros LLC, upon the effective date of the enabling ordinance.

Agenda Item No. 4
File Code No. 570.03

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Planning Division, Community Development Department SUBJECT: Corrected Headers in Table 30.20.030.B and Corrected Section Number 30.25.030 in Title 30 of the Santa Barbara Municipal Code Pertaining to the Average Unit-Size Density Incentive Program [Ordinance Introduction]
RECOMMENDATION:

That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code to Correct Clerical Errors in the Headers in Table 30.20.030.B and Section Number

30.25.030 Pertaining to the Average Unit-Size Density Incentive Program.

DISCUSSION:

Ordinance No. 6129, which eliminated the expiration date from the Average Unit-Size Density Incentive Program, was introduced by City Council on November 7, 2023, and adopted on December 5, 2023. Both versions of the Ordinance included inaccurate headers in Table 30.20.030.B: Development Standards—Two-Unit and Multi-Unit Zones (which labeled it as 30.20.030.A with the associated single-unit zones). Additionally, Section 30.25.030 was written as 30.25.03 and must be corrected.

The accompanying Ordinance corrects these clerical errors.

BUDGET/FINANCIAL IMPACT:

This action does not have a budget/financial impact on the City.

PREPARED BY: Allison De Busk, City Planner
SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office
Agenda Item No. 5
File Code No. 110.01
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
1 ORDINANCE NO. __________

AN ORDINANCE OF THE COUNCIL OF THE CITY

OF SANTA BARBARA AMENDING THE SANTA

BARBARA MUNICIPAL CODE TO CORRECT

CLERICAL ERRORS IN THE HEADERS IN TABLE

30.20.030.B AND SECTION NUMBER 30.25.030

PERTAINING TO THE AVERAGE UNIT-SIZE

DENSITY INCENTIVE PROGRAM

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

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

30.20.030 Development Standards.

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

TABLE 30.20.030.A: DEVLOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.
unless noted)
See also Chapter 27.60, Parcel Maps for Urban Lot
Splits
Average Slope less than 10%,
and all lots with frontage on
the Pacific Ocean regardless
of slope
1 acre 25,000 15,000 10,000 7,500 6,000
Average Slope 10% to 20% 1.5
acre
37,500 22,500 15,000 11,250 9,000
Average Slope over 20% to
30% 2 acres 50,000 30,000 20,000 15,000 12,000
Average Slope over 30% 3 acres 75,000 45,000 30,000 22,500 18,000 100 100 90 75 60 60 Minimum Public Street
Frontage (ft.) See also §30.140.180, Street Frontage and Access; and §30.140.120, Location of Lot Lines
Maximum Base Residential Density
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
2 Maximum Density (per lot) 1 unit 1 unit 1 unit 1 unit 1 unit 1 unit Additional Residential Density Allowances
All lots, in compliance with the
applicable section
See §30.185.050, Additional Residential Unit
See §30.185.040, Accessory Dwelling Units
See Chapter 30.145, Affordable Housing and Density
Bonus and Development Incentives
Maximum Floor Area
Maximum Floor Area
(Floor to Lot Area Ratio) (sq.
ft.)
Applicable only to lots developed, or proposed to be
developed, with a building with two or more stories or
17 feet or more in height.

Less than 4,000 sq. ft. Net Lot
Area
2,200. See also A, Maximum Floor Area (Floor to Lot
Area Ratio)
4,000 to 9,999 sq. ft. Net Lot
Area
1,200 + (0.25 multiplied by the net lot area) = Maximum Floor Area. See also (A), Maximum Floor Area (Floor to
Lot Area Ratio)
10,000 to 14,999 sq. ft. Net
Lot Area
2,500 + (0.125 multiplied by the net lot area) =
Maximum Floor Area. See also A, Maximum Floor Area
(Floor to Lot Area Ratio)
15,000 and more sq. ft. Net
Lot Area Not Applicable
Structure Form and Location
Minimum Residential Unit Size
Studio: 220 square feet;
All other units: 400 square feet
See §30.140.150, Residential Unit
Maximum Height (ft.) 30, except as further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.),
Residential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
Front 35 30 30 25 20
Portions of
structures 15
feet or less in
height: 15;
Portions of
structures
more than 15
feet in height:
20;
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
3 Street facing
covered
parking: 20
See also B, Setback Reduction for Sloping Lots
Interior 15 10 10 8 6 5
Minimum Setbacks (ft.),
Nonresidential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
Front Same as for Residential Structures
Interior (Conversion and
Alterations)
Conversions of existing residential structures to
nonresidential structures, or alterations of existing
structures that contain nonresidential uses, are subject to the setback requirements for residential structures. 30 20 20 12 12 10
Interior (New or Additions) Exception: Community Gardens are subject to the setback requirements for residential structures.

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

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

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

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

Open Yard
Open Yards See §30.140.140, Open Yards
TABLE 30.20.030.B: DEVELOPMENT STANDARDS–TWO-UNIT AND MULTI-UNIT ZONES
Zone R-2 R-M R-MH
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.)
TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
TABLE 30.20.030.B: DEVELOPMENT STANDARDS–TWO-UNIT AND MULTI-UNIT COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
4 ZONES
Zone R-2 R-M R-MH
Average Slope less than 10% 7,000
Average Slope 10% to 20% 10,500
Average Slope over 20% to
30% 14,000
Average Slope over 30% 21,000
14,000 14,000
60 60 60 Minimum Public Street
Frontage (ft.) See §30.140.180, Street Frontage and Access; and §30.140.120, Location of Lot Lines
Maximum Base Residential Density
Less than 5,000 sq. ft. Net Lot
Area 1 unit 1 unit
5,000 to 5,999 sq. ft. Net Lot
Area 1 unit 2 units
6,000 to 6,999 sq. ft. Net Lot
Area
2 units if
average slope
less than
10%, 1 unit
otherwise
2 units
7,000 and more sq. ft. Net Lot
Area
Average Slope less than 10%
1 unit/3,500 sq.
ft. of net lot
area
Average Slope 10% to 20%
1 unit/5,250 sq.
ft. of net lot
area
Average Slope over 20% to
30%
1 unit/7,000 sq.
ft. of net lot
area
Average Slope over 30%
1 unit/10,500
sq. ft. of net lot
area
3 units, or 1 unit/3,500 sq. ft. of net lot
area, whichever is greater
Additional Residential Density Allowances
All lots, in compliance with the
applicable section
See §30.185.040, Accessory Dwelling Units
See Chapter 30.150, Average Unit-Size Density
Incentive Program
See Chapter 30.145, Affordable Housing and Density
Bonus and Development Incentives
Structure Form and Location
TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
5 ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
TABLE 30.20.030.B: DEVELOPMENT STANDARDS–TWO-UNIT AND MULTI-UNIT ZONES
Zone R-2 R-M R-MH
Minimum Residential Unit
Size See §30.140.150, Residential Unit
30 45 45
Maximum Height (ft.) Except as further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.),
Residential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
See Chapter 30.150, Average Unit-Size Density
Incentive Program
1st and 2nd Stories: 10
Portions of structures above 2nd story:
20 Front
Portions of
structures 15
feet or less in
height: 15;
Portions of
structures more
than 15 feet in
height: 20;
Street facing
covered
parking: 20
See also (B),
Setback
Reduction for
Sloping Lots
Covered parking: 10
Covered parking, street-facing: 20
1st and 2nd Stories: 6
Portions of structures above 2nd story:
10 Interior
Covered
parking: 3
Other
structures: 6
Covered parking:
● Single-Unit Residential and Two-Unit
Residential: 3
● Multi-Unit Residential: 6 except as
provided in C, Interior Setback
Reduction for Covered Parking on Lots
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
6 55 Feet or Less and D, Interior Setback
for Covered Parking Opposite the
Primary Front Lot Line
TABLE 30.20.030.A: DEVELOPMENT STANDARDS–RESIDENTIAL SINGLE UNIT ZONES
Zone RS-1A RS-25 RS-15 RS-10 RS-7.5 RS-6
TABLE 30.20.030.B: DEVELOPMENT STANDARDS–TWO-UNIT AND MULTI-UNIT ZONES
Zone R-2 R-M R-MH
Minimum Setbacks (ft.),
Nonresidential Structures
See also §30.140.090, Encroachments into Setbacks
and Open Yards
Front Same as for Residential Structures
Interior (Conversions and
Alterations)
Conversions of existing residential structures to
nonresidential structures, or alterations of existing
structures that contain nonresidential uses, are subject to the setback requirements for residential structures.

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

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

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

Minimum Setbacks,
Uncovered Parking
See §30.175.060, Location of Required Automobile and
Bicycle Parking
Open Yard
Open Yards See §30.140.140, Open Yards
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
7 Additional Residential Zone Development Regulations
A. Maximum Floor Area (Floor to Lot Area Ratio).

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

2. Measuring Floor Area Pursuant to this Section. In determining floor area pursuant to this section see Section 30.15.070, Measuring Floor Area, and the following:
a. Below Grade Excluded. On any floor which is partly below and partly above grade, such as a basement, cellar, or understory, the total floor area of that floor may be excluded from the floor to lot area ratio (FAR) if no more than a cumulative total width of 12 feet per elevation has a distance from finished grade to ceiling greater than four feet.

See Chapter 30.150, Average Unit-Size Density
Incentive Program
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
8 b. Partially Below Grade Reduced. On any floor which is partly below and partly above grade, such as a basement, cellar or understory, the total floor area of that floor may be reduced by 50% from the floor to lot area ratio (FAR) if more than 12 feet, but less than one half the entire length of the perimeter has a distance from grade to ceiling greater than four feet. c. All Other Floor Area Included. If more than one half the entire length of the perimeter of any floor has a distance from grade to ceiling greater than four feet, it is included in the floor to lot area ratio (FAR). d. Accessory Dwelling Unit and Junior Accessory Dwelling Unit Included. Floor area within a portion of a structure designed and permitted as an accessory dwelling unit or junior accessory dwelling unit is included.

FIGURE 30.20.030.A.2: MEASURING FLOOR AREA
B. Setback Reduction for Sloping Lots.

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

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

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

COUNCIL INTRODUCTION DRAFT 02/27/2024

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

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

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

30.25.030 Development Standards.

Table 30.25.030 prescribes the development standards for Commercial and Office Zones.

Section numbers refer to other sections of this Title, while individual letters refer to subsections that directly follow the table. Additional regulations that apply throughout the City are located in Division III, Citywide Regulations.

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SHOWING CHANGES FROM CURRENT CODE
10 TABLE 30.25.030: DEVELOPMENT STANDARDS–COMMERCIAL AND OFFICE ZONES
Zone O-R O-M C-R C-G
Lot Size and Street Frontage
Minimum Net Lot Area for
Newly Created Lots (sq. ft.)
None; except 3,500 sq. ft. of net lot area is required for lots that include residential uses
Minimum Public Street
Frontage (ft.)
None, See §30.140.180, Street Frontage and Access; and
§30.140.120, Location of Lot Lines
Maximum Base Residential Density
Less than 5,000 sq. ft. Net
Lot Area 1 unit
5,000 to 6,999 sq. ft. Net
Lot Area 2 units
7,000 and more sq. ft. Net
Lot Area
3 units, or 1 unit/3,500 sq. ft. of net lot area, whichever is greater
Additional Residential Density Allowances
All lots, in compliance with
the applicable section
See §30.185.040, Accessory Dwelling Units
See Chapter 30.150, Average Unit-Size Density Incentive Program
See Chapter 30.145, Affordable Housing and Density
Bonus and Development Incentives
Structure Form and Location
Minimum Residential Unit
Size
Studio: 220 square feet;
All other units: 400 square feet
See §30.140.150, Residential Unit
Maximum Height (ft.) 45 45 45
45;
60 for Community
Benefit Project or
Community Benefit
Housing Project
(§30.140.100.B)
See also A,
Theater Additions
Additional Height
Limitations Adjacent to all
Residential Zones
Height is further limited in accordance with §30.140.170, Solar Access Height Limitations
Minimum Setbacks (ft.)
See also §30.140.090, Encroachments into Setbacks and
Open Yards
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
11 TABLE 30.25.030: DEVELOPMENT STANDARDS–COMMERCIAL AND OFFICE ZONES
Zone O-R O-M C-R C-G
See Chapter 30.150, Average Unit-Size Density Incentive Program
Front
Residential only development: Same
as R-M Zone
Nonresidential and mixed-use
development:
● 1
st and 2nd Stories: 10
● Portions of structure above
2 nd story: 20
Residential only
development:

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

Uncovered Parking See §30.175.060, Location of Required Automobile and Bicycle Parking
Open Yard
COUNCIL INTRODUCTION DRAFT 02/27/2024

SHOWING CHANGES FROM CURRENT CODE
12 TABLE 30.25.030: DEVELOPMENT STANDARDS–COMMERCIAL AND OFFICE ZONES
Zone O-R O-M C-R C-G
Open Yards
Any lot developed with residential uses shall provide open yard pursuant to §30.140.140, Open Yards.

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

1. The stage addition is devoted solely to rigging fly systems,

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

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

SECTION 3. Correction of these clerical errors is categorically exempt from the California Environmental Quality Act under Section 15305 of the CEQA Guidelines [Minor Alterations in Land Use Limitations] and Santa Barbara Municipal Code (SBMC) section

22.100.070.C.5 Minor Alterations in Land Use Limitations. SBMC Section

22.100.070.C.5(c) specifies that categorical exemptions in this class include “Adoption or amendment of land use or development ordinances, regulations, standards, or guidelines that substantially maintain existing land use intensity or density.” The listed clerical corrections have no impact on existing land use intensity or density.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Sustainability & Resilience Department
SUBJECT: Rescission of the Prohibition of Natural Gas in New Construction [Ordinance Introduction]
RECOMMENDATION: That Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara amending the Santa Barbara Municipal Code by repealing Chapter 22.120 Prohibiting Natural Gas Infrastructure in New Buildings; and
B. Direct staff to return to Council with recommendations for alternative pathways to achieve the City’s climate action goals for new buildings.

DISCUSSION:

On July 27, 2021, Council adopted Ordinance No. 6014 (later amended by Ordinance No. 6031 to correct a clerical error) prohibiting natural gas infrastructure in newly constructed buildings in support of the City’s goal of achieving carbon neutrality by 2035. On April 17, 2023, a three-judge panel of the Ninth Circuit Court of Appeals ruled that a City of Berkeley ordinance requiring all-electric new buildings was pre-empted by the federal Energy Policy and Conservation Act of 1975 (EPCA) and was, therefore, invalid (California Restaurant Association v. City of Berkeley, No. 21-16278 (9th Cir. 2023)).

On June 15, 2023, in response to the uncertainty created by the Berkeley ruling, the City Attorney’s Office issued a memorandum directing the temporary suspension of enforcement of the natural gas infrastructure prohibition ordinance until such a time that the Ninth Circuit Court of Appeals determined whether it would rehear the Berkeley ruling. On January 2, 2024, the court denied City of Berkeley’s request to rehear the case.

The proposed ordinance states Council’s disagreement with the Ninth Circuit opinion but repeals the ordinance based on the desire to eliminate legal risk to the City while alternatives are explored.

Agenda Item No. 6
File Code No. 640.04
Council Agenda Report
Rescission of the Prohibition of Natural Gas in New Construction [Ordinance Introduction] February 27, 2024

Next Steps:

Though the Berkeley ruling limits how the City can reduce emissions from new buildings, several other potential pathways exist to encourage and/or require all electric buildings.

These include local amendments to the California Energy Code (also known as a “reach code”) to reduce greenhouse gas emissions in new buildings, using greenhouse gas emissions thresholds (such as limitations on nitrous oxide emissions), and other options that cities throughout the state are exploring. Staff is recommending that Council direct staff to return to Council in the future with an alternative recommended approach to achieving the City’s climate action goals for new buildings.

BUDGET/FINANCIAL INFORMATION:

There is no financial impact to the City related to the rescission of this ordinance.

Developing an alternative pathway will require staff time in the Sustainability & Resilience, Community Development, and City Attorney Departments, using existing appropriations.

SUSTAINABILITY IMPACT:

All-electric buildings benefit the health, welfare, and resiliency of Santa Barbara and its residents. Due to the launch of Santa Barbara Clean Energy in 2021, the City of Santa Barbara is largely served by 100% carbon-free electricity, meaning that all-electric buildings are virtually emissions-free. This is a critical piece of achieving and maintaining the City’s ambitious goal of carbon neutrality by 2035.

Building energy use is the second largest source of building emissions in Santa Barbara and the overwhelming majority of those emissions are related to the combustion of natural gas within the building. The primary uses of natural gas within the building are for space and water heating.

The Natural Gas Infrastructure Prohibition Ordinance was particularly effective because the most cost-effective time to integrate all-electric infrastructure is at new construction. Staff plan to evaluate multiple options to promote all-electric buildings that maintain costeffectiveness and equity for the community.

ENVIRONMENTAL REVIEW:

Pursuant to Public Resources Code Section 21083, CEQA does not apply to projects which a public agency rejects or disapproves. Additionally, the proposed rescission does not change State energy standards, air quality regulations, and GHG reduction goals that remain in place and serve to limit greenhouse gas emission and air quality impacts from new development.

Council Agenda Report
Rescission of the Prohibition of Natural Gas in New Construction [Ordinance Introduction] February 27, 2024

PREPARED BY: Alelia Parenteau, Sustainability & Resilience Director SUBMITTED BY: Alelia Parenteau, Sustainability & Resilience Director APPROVED BY: City Administrator’s Office

COUNCIL INTRODUCTION DRAFT

SHOWING CHANGES FROM
CURRENT CODE 02/27/24
1 ORDINANCE NO. _____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING THE SANTA BARBARA
MUNICIPAL CODE BY REPEALING CHAPTER 22.120

PROHIBITING NATURAL GAS INFRASTRUCTURE IN NEW

BUILDINGS

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. Scientific evidence has established that natural gas combustion, procurement and transportation produce significant greenhouse gas emissions that contribute to global warming and climate change.

B. As a coastal city, Santa Barbara is vulnerable to sea level rise. Human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, which contribute to melting of glaciers and thermal expansion of ocean water, resulting in rising sea levels.

C. Santa Barbara is already experiencing the repercussions of excessive greenhouse gas emissions as rising sea levels threaten the City’s shoreline and infrastructure, have caused significant erosion, have increased impacts to infrastructure during extreme tides, and have caused the City to expend funds to modify the sewer system.

D. Santa Barbara is situated along a wildland-urban interface and is extremely vulnerable to wildfires and firestorms, and human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, drought conditions, vegetative fuel, and length of fire seasons.

E. Prohibition of new natural gas infrastructure is also reasonably necessary because of health and safety concerns as City residents suffer from asthma and other health conditions associated with poor indoor and outdoor air quality exacerbated by the combustion of natural gas.

F. The City Council has adopted a Climate Action Plan, Strategic Energy Plan, and Sea Level Rise Adaptation Plan, which all recognize that rapid, far-reaching and unprecedented changes in all aspects of society are required to limit global warming and the resulting environmental threat posed by climate change, including the prompt phasing out of natural gas as a fuel for heating and cooling infrastructure in new buildings.

G. Using electric heating and cooling infrastructure in new buildings fueled by less greenhouse gas intensive electricity is linked to significantly lower greenhouse gas emissions and is cost competitive because of the cost savings associated with all-electric designs that avoid new gas infrastructure.

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SHOWING CHANGES FROM
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2 H. All-electric building design benefits the health, welfare, and resiliency of Santa Barbara and its residents.

I. The most cost-effective time to integrate electrical infrastructure is in the design phase of a building project because building systems and spaces can be designed to optimize the performance of electrical systems and the project can take full advantage of avoided costs and space requirements from the elimination of natural gas piping and venting for combustion air safety.

J. The City Council adopted Santa Barbara Municipal Code Chapter 22.110 to eliminate obsolete natural gas infrastructure and associated greenhouse gas emissions in new buildings where all-electric infrastructure can be most practicably integrated, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas.

K. Santa Barbara Municipal Code Chapter 22.110 was modelled after a similar ordinance adopted by the City of Berkeley.

L. The Berkeley ordinance was found to be preempted by the Energy Policy and Conservation Act (“EPCA”) and particularly 42 U.S.C § 6297(c), by an opinion of the 9 th Circuit Court of Appeal in the case of California Restaurant Association v. City of Berkeley89 F. 4th 1094, 2024 WL 23986 (amended opinion on denial of rehearing).

O. The city suspended enforcement of Santa Barbara Municipal Code Chapter

22.110 in 2023 following the initial 9th Circuit opinion reported at 65 F. 4th 1045.

N. The City Council while stating its disagreement with the 9th Circuit opinion, desires to eliminate any legal risk associated with continuation of Chapter 22.110 as part of its Municipal Code.

M. The City Council encourages all persons involved in the development or substantial redevelopment of new buildings in the City to incorporate all-electrical design and to voluntarily eliminate gas infrastructure from their development and redevelopment projects.

SECTION 2. Chapter 22.110 of the Santa Barbara Municipal Code is repealed.

Chapter 22.110 PROHIBITING NATURAL GAS INFRASTRUCTURE IN NEW

BUILDINGS

22.110.010 Findings and Purpose.

22.110.020 Applicability.

22.110.030 Definitions.

22.110.040 Prohibited Natural Gas Infrastructure in Newly Constructed Buildings.

22.110.050 Public Interest Exemption.

22.110.060 Appeal of Permitting Authority Decisions.

22.110.070 Periodic Review of Standards.

22.110.010 Findings and Purpose.

The City Council finds and declares as follows:

COUNCIL INTRODUCTION DRAFT

SHOWING CHANGES FROM
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3 A. Scientific evidence has established that natural gas combustion, procurement and transportation produce significant greenhouse gas emissions that contribute to global warming and climate change.

B. As a coastal city, Santa Barbara is vulnerable to sea level rise. Human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, which contribute to melting of glaciers and thermal expansion of ocean water, resulting in rising sea levels.

C. Santa Barbara is already experiencing the repercussions of excessive greenhouse gas emissions as rising sea levels threaten the City’s shoreline and infrastructure, have caused significant erosion, have increased impacts to infrastructure during extreme tides, and have caused the City to expend funds to modify the sewer system.

D. Santa Barbara is situated along a wildland-urban interface and is extremely vulnerable to wildfires and firestorms, and human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, drought conditions, vegetative fuel, and length of fire seasons.

E. This chapter is also reasonably necessary because of health and safety concerns as City residents suffer from asthma and other health conditions associated with poor indoor and outdoor air quality exacerbated by the combustion of natural gas.

F. The City Council has adopted a Climate Action Plan, Strategic Energy Plan, and Sea Level Rise Adaptation Plan, which all recognize that rapid, far-reaching and unprecedented changes in all aspects of society are required to limit global warming and the resulting environmental threat posed by climate change, including the prompt phasing out of natural gas as a fuel for heating and cooling infrastructure in new buildings.

G. Using electric heating and cooling infrastructure in new buildings fueled by less greenhouse gas intensive electricity is linked to significantly lower greenhouse gas emissions and is cost competitive because of the cost savings associated with all-electric designs that avoid new gas infrastructure.

H. All-electric building design benefits the health, welfare, and resiliency of Santa Barbara and its residents.

I. The most cost-effective time to integrate electrical infrastructure is in the design phase of a building project because building systems and spaces can be designed to optimize the performance of electrical systems and the project can take full advantage of avoided costs and space requirements from the elimination of natural gas piping and venting for combustion air safety.

J. It is the intent of the City Council to eliminate obsolete natural gas infrastructure and associated greenhouse gas emissions in new buildings where all-electric infrastructure

COUNCIL INTRODUCTION DRAFT

SHOWING CHANGES FROM
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4 can be most practicably integrated, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas.

22.110.020 Applicability.

A. This chapter applies to all newly constructed buildings as provided in Section

22.110.040.

B. The requirements of this chapter shall not apply to the use of portable propane appliances for outdoor cooking and heating.

C. This chapter neither amends the California Energy Code as adopted by Section

22.04.010 of this Code, nor requires the use or installation of any specific appliance or system as a condition of approval.

22.110.030 Definitions.

APPLICANT. Any person, firm, partnership, association, joint venture, corporation, or any other entity or combination of entities, or State or local government agency applying for a permit for a newly constructed building.

DIRECTOR. The Director of the Sustainability and Resilience Department.

ENERGY CODE. The most current version of the California Energy Code published by the California Building Standards Commission as adopted by reference pursuant to Chapter 22.04 and any local amendments thereto.

GREENHOUSE GAS EMISSIONS. Gases that trap heat in the atmosphere.

MECHANICAL CODE. The California Mechanical Code published by the California Building Standards Commission as adopted by reference to Chapter 22.04 and any local amendments thereto.

NATURAL GAS. Natural gas has the same meaning as “Fuel Gas” as defined in the Plumbing Code and in the Mechanical Code.

NATURAL GAS INFRASTRUCTURE. Natural gas or fuel gas piping, other than service pipe, in or in connection with a building or within the property lines of a parcel, extending from the point of delivery at the gas meter as specified in the Plumbing Code or in the Mechanical Code.

NEWLY CONSTRUCTED BUILDING. A new structure that has never before been used or occupied for any purpose or removal and replacement of an existing structure. An existing structure is removed and replaced for purposes of this definition when either: (1) it is completely demolished and replaced with a new structure; or (2) it is partially removed and replaced and the removal and replacement involves any two of the following:

COUNCIL INTRODUCTION DRAFT

SHOWING CHANGES FROM
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5 1. More than 75% of the structural elements of the roof or roof framing are removed;

2. More than 75% of the structural exterior walls (or vertical supports such as posts or columns when a structure has no walls) of a structure are removed or are no longer a necessary and integral structural component of the overall building;

3. More than 75% of the foundation system is removed, or is no longer a necessary and integral structural component of the overall structure, including, but not limited to:
perimeter concrete foundation, retaining walls, post and pier foundations, or similar elements that connect a structure to the ground and transfer gravity loads from the structure to the ground.

The calculation with respect to a wall will be based on a horizontal measurement of the affected portion of the perimeter exterior wall between the structure’s footings and the structure’s ceiling. The calculation with respect to a roof will be based on the overall square footage of the area affected. The calculation with respect to a foundation system will be based on the lineal feet of the affected foundation system, count of post and piers, and overall square footage of the affected elements in relationship to the system as a whole.

PERMITTING AUTHORITY. The Building Official or a city employee exercising authority delegated by the Building Official.

PLUMBING CODE. The California Plumbing Code published by the California Building Standards Commission as adopted by reference to Chapter 22.04 and any local amendments thereto.

22.110.040 Prohibited Natural Gas Infrastructure in Newly Constructed Buildings.

A. Natural gas infrastructure is prohibited in newly constructed buildings for which a building permit for construction is issued after January 1, 2022, unless a complete building permit application is submitted on or before December 31, 2021.

B. Notwithstanding subsection A above, the permitting authority may authorize natural gas infrastructure in a newly constructed building if the applicant establishes that it is not physically feasible to construct the building without natural gas infrastructure. For purposes of this exception, it is physically feasible to construct the building without natural gas infrastructure if an all-electric prescriptive compliance approach is available for the building under the Energy Code or the building is able to achieve the performance compliance standards under the Energy Code using commercially available technology and an approved calculation method.

C. When natural gas infrastructure is permitted for a newly constructed building pursuant to subsection B above, it may be extended to any system, device, or appliance

COUNCIL INTRODUCTION DRAFT

SHOWING CHANGES FROM
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6 within a building for which an equivalent all-electric system or design is not available.

Further, newly constructed buildings with natural gas infrastructure must also have sufficient electric capacity, wiring, and conduit to facilitate future full building electrification when it becomes feasible.

D. The requirements of this section shall be deemed objective planning standards under Government Code Section 65913.4 and objective development standards under Government Code Section 65589.5.

E. The requirements of this section do not apply to a junior accessory dwelling unit or an accessory dwelling unit that is attached to an existing primary residential unit that has natural gas infrastructure. The definitions of Section 30.185.040 of this Code apply to this subsection.

22.110.050 Public Interest Exemption.

A. Notwithstanding the requirements of Section 22.110.040.A, minimally necessary and specifically tailored natural gas infrastructure may be allowed in a newly constructed building if the permitting authority finds that the use serves the public interest. In determining whether the construction of natural gas infrastructure is in the public interest, the permitting authority may consider:

1. The availability of alternative technologies or systems that do not use natural gas;

2. Any other impacts that the decision to allow natural gas infrastructure may have on the health, safety, or welfare of the public.

B. If the installation of natural gas infrastructure is granted under a public interest exemption, the newly constructed buildings shall nonetheless be required at the minimum to have sufficient electric capacity, wiring and conduit to facilitate future full building electrification.

C. For purposes this section, provision of natural gas infrastructure for cooking appliances in commercial kitchens in restaurants and institutional cooking facilities shall be deemed to be in the public interest provided that the infrastructure is limited to the capacity necessary to operate the appliances as designed.

D. For purposes of this section, provision of natural gas infrastructure for laboratory equipment or clean-rooms in buildings designed for scientific or medical uses shall be deemed to be in the public interest provided that the infrastructure is limited to the capacity necessary for designated laboratory or clean-room areas.

22.110.060 Appeal of Permitting Authority Decisions.

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SHOWING CHANGES FROM
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7 Decisions of the permitting authority under this chapter may be appealed to the City Council as provided in Section 1.30.050 of this Code.

22.110.070 Periodic Review of Standards.

The Director shall review the requirements of this chapter every 18 months for ongoing consistency with the California Energy Code and the Energy Commission’s mid-cycle amendments and triennial code adoption cycle and make a report and recommendation to the City Council.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: January 2024 Investment Report
RECOMMENDATION:

That Council accept the January 2024 Investment Report.

DISCUSSION:

The attached investment report includes Investment Activity, Interest Revenue, a Summary of Cash and Investments, and Investment Portfolio detail as of January 31, 2024.

ATTACHMENTS: 1. January 2024 Investment Report

2. January 2024 Clean Energy CCE Report
PREPARED BY: Salvatore Parrilla, Treasury Analyst
SUBMITTED BY: Lyndsay Maas, Assistant Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 7
File Code No. 260.02

INVESTMENT ACTIVITY INVESTMENT INCOME

PURCHASES OR DEPOSITS POOLED INVESTMENTS
1/25 USTN 3,000,000 $ Interest Earned on Investments 780,141 $ 1/25 USTN 3,000,000 Amortization 18,5331/25 USTN 3,000,000 1/25 USTN 2,000,000
1/25 USTN 2,000,000
1/25 USTN 2,000,000
1/25 USTN 2,000,000
1/25 USTN 2,000,000
Total $ 19,000,000 Total $ 798,674

SALES, MATURITIES, CALLS OR WITHDRAWALS
1/31 USTN $ (3,000,000)
Total $ (3,000,000)
ACTIVITY TOTAL $ 16,000,000 INCOME TOTAL $ 798,674

CITY OF SANTA BARBARA
Activity and Interest Report
January 31, 2024
ATTACHMENT 1
1 ENDING BALANCE AS OF December 31, 2023
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityUS Bank Checking Account $ 32,251,339 0.750% 9.04% 1 (1) State of California Local Agency Investment Fund (LAIF) 75,000,000 3.929% 21.01% 1 (2)Treasury Securities - Coupon 51,774,037 1.752% 14.50% 609Federal Agency Issues - Coupon 175,941,289 2.561% 49.29% 792 Corporate/Medium Term Notes 6,998,962 1.352% 1.96% 519
Supranationals Obligations 14,987,773 1.745% 4.20% 851
356,953,400 2.509% 100.00% 525
Totals and Averages $ 356,953,400 2.509% 100.00% 525
Total Cash and Investments $ 356,953,400
NET CASH AND INVESTMENT ACTIVITY FOR January 2024 $ 12,348,607 ENDING BALANCE AS OF January 31, 2024
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityUS Bank Checking Account $ 28,805,391 0.750% 7.80% 1 (1) State of California Local Agency Investment Fund (LAIF) 75,000,000 4.012% 20.31% 1 (2)Treasury Securities - Coupon 67,565,322 2.423% 18.30% 876Federal Agency Issues - Coupon 175,943,882 2.561% 47.64% 761 Corporate/Medium Term Notes 6,999,090 1.352% 1.90% 488
Supranationals Obligations 14,988,321 1.745% 4.06% 820
369,302,007 2.633% 100.00% 566
Totals and Averages $ 369,302,007 2.633% 100.00% 566
Total Cash and Investments $ 369,302,007
Note: (1) Earnings Credit Rate (ECR) is provided at the rate of 0.750% by US Bank to help offset banking fees. (2) The average life of the LAIF portfolio as of Jan 31, 2024 is 212 days.

CITY OF SANTA BARBARA
Summary of Cash and Investments
January 31, 2024
2 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS LOCAL AGENCY INVESTMENT FUNDSLOCAL AGENCY INVESTMENT FUND - - - - 4.012 4.012 75,000,000.00 75,000,000.00 75,000,000.00 0.00 Subtotal, LAIF 75,000,000.00 75,000,000.00 75,000,000.00 0.00TREASURY SECURITIES - COUPONU S TREASURY NOTE 05/03/19 04/30/24 Aaa AA+ 2.250 2.342 2,000,000.00 1,999,579.25 1,985,000.00 (14,579.25)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,994,229.63 2,820,240.00 (173,989.63)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,992,052.24 1,890,860.00 (101,192.24)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,987,786.64 1,859,540.00 (128,246.64)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,990,950.15 1,886,020.00 (104,930.15)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,992,927.84 1,899,460.00 (93,467.84)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,994,174.89 1,851,640.00 (142,534.89)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,986,600.07 1,837,340.00 (149,260.07)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,987,240.46 1,839,060.00 (148,180.46)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,992,732.05 1,842,580.00 (150,152.05)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,996,015.56 2,969,880.00 (26,135.56)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,954,489.13 2,783,790.00 (170,699.13)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.210 3,000,000.00 2,997,614.16 2,898,870.00 (98,744.16)U S TREASURY NOTE 02/28/22 02/29/24 Aaa AA+ 1.500 1.548 2,000,000.00 1,999,928.18 1,994,040.00 (5,888.18)U S TREASURY NOTE 02/28/22 11/30/26 Aaa AA+ 1.625 1.863 2,000,000.00 1,987,169.32 1,873,360.00 (113,809.32)U S TREASURY NOTE 03/15/22 03/15/25 Aaa AA+ 1.750 1.827 3,000,000.00 2,997,500.73 2,906,130.00 (91,370.73)U S TREASURY NOTE 03/17/22 05/31/24 Aaa AA+ 2.000 2.006 2,000,000.00 1,999,958.01 1,978,900.00 (21,058.01)U S TREASURY NOTE 03/17/22 12/31/26 Aaa AA+ 1.750 2.170 2,000,000.00 1,976,869.25 1,877,580.00 (99,289.25)U S TREASURY NOTE 06/28/23 10/31/27 Aaa AA+ 4.125 4.124 2,000,000.00 2,000,000.00 2,012,500.00 12,500.00U S TREASURY NOTE 06/28/23 02/29/28 Aaa AA+ 4.000 4.058 2,000,000.00 1,995,638.55 2,005,700.00 10,061.45U S TREASURY NOTE 09/27/23 07/31/24 Aaa AA+ 3.000 5.456 2,000,000.00 1,976,493.51 1,979,220.00 2,726.49U S TREASURY NOTE 09/27/23 07/31/25 Aaa AA+ 4.750 5.160 2,000,000.00 1,988,337.67 2,009,380.00 21,042.33U S TREASURY NOTE 01/25/24 12/31/28 Aaa AA+ 3.750 4.042 3,000,000.00 2,961,244.88 2,982,900.00 21,655.12U S TREASURY NOTE 01/25/24 04/30/28 Aaa AA+ 3.500 4.060 2,000,000.00 1,956,680.00 1,967,900.00 11,220.00U S TREASURY NOTE 01/25/24 07/31/28 Aaa AA+ 4.125 4.060 3,000,000.00 3,007,916.25 3,028,470.00 20,553.75U S TREASURY NOTE 01/25/24 05/31/28 Aaa AA+ 3.625 4.065 2,000,000.00 1,965,333.49 1,978,120.00 12,786.51U S TREASURY NOTE 01/25/24 03/31/28 Aaa AA+ 3.625 4.070 2,000,000.00 1,966,175.77 1,978,120.00 11,944.23U S TREASURY NOTE 01/25/24 01/31/28 Aaa AA+ 3.500 4.080 2,000,000.00 1,957,617.21 1,968,980.00 11,362.79U S TREASURY NOTE 01/25/24 12/31/27 Aaa AA+ 3.875 4.083 3,000,000.00 2,977,609.68 2,994,150.00 16,540.32U S TREASURY NOTE 01/25/24 11/30/27 Aaa AA+ 3.875 4.095 2,000,000.00 1,984,457.82 1,995,240.00 10,782.18 Subtotal, Treasury Securities 68,000,000.00 67,565,322.39 65,894,970.00 (1,670,352.39)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,999,946.68 1,997,640.00 (2,306.68)FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.540 3,000,000.00 3,000,000.00 2,812,080.00 (187,920.00) Callable 03/22/24, Q FED AGRICULTURAL MTG CORP 06/09/22 08/20/24 - - 2.910 2.911 3,000,000.00 3,000,000.00 2,967,030.00 (32,970.00) Callable 03/09/24, QFED AGRICULTURAL MTG CORP 05/15/23 05/15/26 - - 3.625 3.625 2,000,000.00 2,000,000.00 1,978,840.00 (21,160.00) FED AGRICULTURAL MTG CORP 05/19/23 05/19/27 - - 4.100 4.100 2,000,000.00 2,000,000.00 1,970,400.00 (29,600.00) Callable 05/19/25, 1x FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,847,040.00 (152,960.00) Callable, PFEDERAL FARM CREDIT BANK 05/06/21 05/06/25 Aaa AA+ 0.710 0.710 2,000,000.00 2,000,000.00 1,903,980.00 (96,020.00) Callable, P

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
January 31, 2024
3 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
January 31, 2024
FEDERAL FARM CREDIT BANK 09/08/21 09/08/26 Aaa AA+ 0.870 0.870 2,000,000.00 2,000,000.00 1,831,180.00 (168,820.00) Callable, P FEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,996,241.48 2,941,800.00 (54,441.48) Callable, PFEDERAL FARM CREDIT BANK 12/23/21 06/23/25 Aaa AA+ 1.170 1.170 3,000,000.00 3,000,000.00 2,866,740.00 (133,260.00) Callable, PFEDERAL FARM CREDIT BANK 12/22/21 06/22/26 Aaa AA+ 1.390 1.390 3,000,000.00 3,000,000.00 2,801,910.00 (198,090.00) Callable, PFEDERAL FARM CREDIT BANK 01/27/22 01/26/27 Aaa AA+ 1.780 1.780 3,000,000.00 3,000,000.00 2,798,640.00 (201,360.00) Callable, PFEDERAL FARM CREDIT BANK 02/16/22 02/16/27 Aaa AA+ 2.180 2.180 3,000,000.00 3,000,000.00 2,830,680.00 (169,320.00) Callable 02/16/24, PFEDERAL FARM CREDIT BANK 08/30/22 02/25/26 Aaa AA+ 3.320 3.470 3,000,000.00 2,991,304.36 2,948,760.00 (42,544.36) FEDERAL FARM CREDIT BANK 05/26/22 05/26/26 Aaa AA+ 3.375 3.375 3,000,000.00 3,000,000.00 2,925,840.00 (74,160.00) Callable, P FEDERAL FARM CREDIT BANK 10/19/22 10/19/26 Aaa AA+ 4.250 4.264 3,000,000.00 2,998,981.25 3,004,320.00 5,338.75 FEDERAL FARM CREDIT BANK 11/29/22 11/18/24 Aaa AA+ 4.500 4.650 3,000,000.00 2,996,599.72 2,990,940.00 (5,659.72)FEDERAL FARM CREDIT BANK 03/29/23 03/29/27 Aaa AA+ 4.000 4.000 2,000,000.00 2,000,000.00 1,997,420.00 (2,580.00)FEDERAL FARM CREDIT BANK 04/05/23 04/05/27 Aaa AA+ 5.270 5.270 2,000,000.00 2,000,000.00 1,991,720.00 (8,280.00) Callable 04/05/24, P FEDERAL FARM CREDIT BANK 05/09/23 05/09/28 Aaa AA+ 5.020 5.020 2,000,000.00 2,000,000.00 1,984,020.00 (15,980.00) Callable 05/09/24, PFEDERAL FARM CREDIT BANK 06/30/23 06/30/28 Aaa AA+ 5.000 5.000 2,000,000.00 2,000,000.00 1,994,580.00 (5,420.00) Callable 06/30/25, PFEDERAL FARM CREDIT BANK 08/25/23 07/17/26 Aaa AA+ 4.625 4.750 2,000,000.00 1,994,235.05 2,020,820.00 26,584.95 FEDERAL FARM CREDIT BANK 08/30/23 06/23/26 Aaa AA+ 4.820 5.068 2,000,000.00 1,988,937.81 2,000,940.00 12,002.19 Callable 06/23/25, P FEDERAL FARM CREDIT BANK 11/29/23 11/24/27 Aaa AA+ 5.120 5.120 2,000,000.00 2,000,000.00 2,017,360.00 17,360.00 Callable 11/24/25, PFEDERAL FARM CREDIT BANK 12/06/23 12/06/27 Aaa AA+ 5.380 5.380 2,000,000.00 2,000,000.00 2,000,280.00 280.00 Callable 12/06/24, PFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.580 0.580 3,000,000.00 3,000,000.00 2,787,780.00 (212,220.00) Callable 04/28/24, QFEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,805,390.00 (194,610.00) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,808,210.00 (191,790.00)FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,788,110.00 (211,890.00) Callable 02/25/24, A FEDERAL HOME LOAN BANK 03/16/21 03/16/26 Aaa AA+ 1.000 0.800 2,000,000.00 2,000,000.00 1,872,580.00 (127,420.00) FEDERAL HOME LOAN BANK 05/20/21 05/20/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,855,160.00 (144,840.00) Callable 02/20/24, Q FEDERAL HOME LOAN BANK 05/26/21 12/26/25 Aaa AA+ 0.900 0.900 3,000,000.00 3,000,000.00 2,801,040.00 (198,960.00) Callable 02/26/24, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,929,700.00 (70,300.00) Callable 02/26/24, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,903,120.00 (96,880.00) Callable 03/10/24, QFEDERAL HOME LOAN BANK 06/10/21 06/10/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,852,220.00 (147,780.00) Callable 03/10/24, QFEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,916,500.00 (83,500.00) Callable 03/28/24, QFEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,935,460.00 (64,540.00) Callable 03/23/24, QFEDERAL HOME LOAN BANK 09/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,916,500.00 (83,500.00) Callable 03/28/24, QFEDERAL HOME LOAN BANK 09/28/21 09/28/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,829,320.00 (170,680.00) Callable 03/28/24, QFEDERAL HOME LOAN BANK 10/28/21 10/28/26 Aaa AA+ 1.250 1.125 2,000,000.00 2,000,000.00 1,853,280.00 (146,720.00) FEDERAL HOME LOAN BANK 12/28/21 06/28/24 Aaa AA+ 0.920 0.920 3,000,000.00 3,000,000.00 2,948,580.00 (51,420.00) Callable 03/28/24, Q FEDERAL HOME LOAN BANK 12/28/21 02/28/25 Aaa AA+ 1.125 1.125 3,000,000.00 3,000,000.00 2,900,130.00 (99,870.00) Callable 03/28/24, QFEDERAL HOME LOAN BANK 12/30/21 12/30/24 Aaa AA+ 1.000 1.000 3,000,000.00 3,000,000.00 2,896,200.00 (103,800.00) Callable, PFEDERAL HOME LOAN BANK 01/26/22 01/26/27 Aaa AA+ 2.250 1.800 3,000,000.00 3,000,000.00 2,838,330.00 (161,670.00)FEDERAL HOME LOAN BANK 02/28/22 05/28/24 Aaa AA+ 1.450 1.450 3,000,000.00 3,000,000.00 2,964,240.00 (35,760.00) FEDERAL HOME LOAN BANK 03/29/22 03/29/27 Aaa AA+ 2.375 2.375 3,000,000.00 3,000,000.00 2,831,580.00 (168,420.00) Callable 03/29/24, Q FEDERAL HOME LOAN BANK 04/21/22 04/21/26 Aaa AA+ 3.000 3.000 2,000,000.00 2,000,000.00 1,935,340.00 (64,660.00) Callable 04/21/24, AFEDERAL HOME LOAN BANK 04/25/22 04/25/25 Aaa AA+ 2.750 2.750 2,000,000.00 2,000,000.00 1,954,040.00 (45,960.00) FEDERAL HOME LOAN BANK 03/23/23 03/13/26 Aaa AA+ 4.125 4.137 2,000,000.00 1,999,387.55 1,996,760.00 (2,627.55)FEDERAL HOME LOAN BANK 05/08/23 02/08/24 Aaa AA+ 5.000 5.010 2,000,000.00 2,000,000.00 1,999,880.00 (120.00)FEDERAL HOME LOAN BANK 06/26/23 06/09/28 Aaa AA+ 4.000 4.071 2,000,000.00 1,994,371.73 2,004,800.00 10,428.27FEDERAL HOME LOAN BANK 06/28/23 06/28/27 Aaa AA+ 5.300 5.300 2,000,000.00 2,000,000.00 1,994,800.00 (5,200.00) Callable 06/28/24, 1x FEDERAL HOME LOAN BANK 08/24/23 09/10/27 Aaa AA+ 4.500 4.511 2,000,000.00 1,999,214.89 2,034,100.00 34,885.11 FEDERAL HOME LOAN BANK 11/29/23 11/17/26 Aaa AA+ 4.625 4.535 2,000,000.00 2,004,615.54 2,028,760.00 24,144.46FEDERAL HOME LOAN MTG CORP 11/25/20 11/25/25 Aaa AA+ 0.625 0.625 3,000,000.00 3,000,000.00 2,801,940.00 (198,060.00) Callable 11/25/24, A FEDERAL HOME LOAN MTG CORP 09/09/20 12/09/24 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,891,670.00 (108,330.00) Callable 03/09/24, QFEDERAL HOME LOAN MTG CORP 06/22/22 03/22/24 Aaa AA+ 2.750 2.751 4,000,000.00 4,000,000.00 3,985,800.00 (14,200.00) 4 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS

QUALITY RATING

CITY OF SANTA BARBARA
Investment Portfolio
January 31, 2024
FEDERAL HOME LOAN MTG CORP 06/23/22 06/23/27 Aaa AA+ 3.500 3.500 3,000,000.00 3,000,000.00 2,900,400.00 (99,600.00) Callable 03/23/24, Q FEDERAL HOME LOAN MTG CORP 06/28/22 06/28/24 Aaa AA+ 3.050 3.050 4,000,000.00 4,000,000.00 3,964,640.00 (35,360.00) Callable 03/28/24, QFEDERAL HOME LOAN MTG CORP 09/29/22 09/29/27 Aaa AA+ 4.750 4.750 3,000,000.00 3,000,000.00 2,985,330.00 (14,670.00) Callable 03/29/24, QFEDERAL HOME LOAN MTG CORP 09/19/22 09/19/24 Aaa AA+ 3.700 3.700 3,000,000.00 3,000,000.00 2,973,840.00 (26,160.00) FEDERAL HOME LOAN MTG CORP 11/22/22 11/22/27 Aaa AA+ 5.125 5.125 3,000,000.00 3,000,000.00 2,991,810.00 (8,190.00) Callable 11/22/24, 1x FEDERAL HOME LOAN MTG CORP 11/30/22 08/28/24 Aaa AA+ 5.000 5.005 3,000,000.00 3,000,000.00 3,001,020.00 1,020.00 FEDERAL HOME LOAN MTG CORP 04/12/23 07/12/27 Aaa AA+ 4.750 4.703 2,000,000.00 2,000,000.00 1,983,860.00 (16,140.00) Callable 07/12/24, A FEDERAL HOME LOAN MTG CORP 08/30/23 07/26/28 Aaa AA+ 5.650 5.684 2,000,000.00 1,997,256.51 2,003,940.00 6,683.49 Callable 07/26/24, QFEDERAL HOME LOAN MTG CORP 10/19/23 07/18/28 Aaa AA+ 5.000 5.212 2,000,000.00 1,983,544.47 2,026,880.00 43,335.53 Callable 07/18/25, 1xFEDERAL HOME LOAN MTG CORP 10/19/23 10/17/28 Aaa AA+ 6.000 6.009 2,000,000.00 1,999,245.38 2,010,120.00 10,874.62 Callable 07/17/24, QFEDERAL HOME LOAN MTG CORP 12/04/23 12/04/28 Aaa AA+ 5.550 5.550 2,000,000.00 2,000,000.00 2,010,900.00 10,900.00 Callable 12/04/24, AFEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,770,040.00 (229,960.00) Callable 02/26/24, QFEDERAL NATL MORTGAGE ASSN 11/17/20 05/17/24 Aaa AA+ 0.375 0.375 3,000,000.00 3,000,000.00 2,955,390.00 (44,610.00) Callable 02/17/24, Q Subtotal, Federal Agencies 176,000,000.00 175,943,882.42 170,864,450.00 (5,079,432.42) SUPRANATIONAL OBLIGATIONSINTERNATIONAL BANK FOR RECONST 01/22/21 10/28/25 Aaa AAA 0.500 0.500 3,000,000.00 3,000,000.00 2,804,730.00 (195,270.00)INTERNATIONAL BANK FOR RECONST 09/09/22 09/09/27 Aaa AAA 4.000 4.000 3,000,000.00 3,000,000.00 2,924,670.00 (75,330.00) Callable 09/09/24, A INTERNATIONAL BANK FOR RECONST 06/26/23 06/26/28 Aaa AAA 4.500 4.528 2,000,000.00 1,997,798.61 2,012,020.00 14,221.39 Callable 06/26/26, 1xINTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,918.64 2,917,320.00 (82,598.64) INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,997,684.00 1,842,080.00 (155,604.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,992,919.76 1,883,900.00 (109,019.76) Subtotal, Supranationals 15,000,000.00 14,988,321.01 14,384,720.00 (603,601.01)CORPORATE/MEDIUM TERM NOTESAPPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,998,804.67 1,958,640.00 (40,164.67)APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,695.56 2,786,280.00 (213,415.56)TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,000,589.47 1,937,820.00 (62,769.47) Subtotal, Corporate Securities 7,000,000.00 6,999,089.70 6,682,740.00 (316,349.70)CHECKING ACCOUNTUS BANK CHKNG ACCNT - - - - 0.750 0.750 28,805,391.12 28,805,391.12 28,805,391.12 0.00 Subtotal, Checking Account 28,805,391.12 28,805,391.12 28,805,391.12 0.00TOTALS 369,805,391.12 369,302,006.64 361,632,271.12 (7,669,735.52) Market values have been obtained from the City's safekeeping agent, US Bank. 5 2.63%

4.27%

5.42%

4.01%

0.00.51.01.52.02.53.03.54.04.55.05.56.0 Jan'23 Feb'23 Mar'23 Apr'23 May'23 Jun'23 Jul'23 Aug'23 Sep'23 Oct'23 Nov'23 Dec'23 Jan'24 Yield ‐ %
INVESTMENT YIELDS (1‐Yr Period)
City Portfolio 2‐yr Treasury 3‐mo Treasury LAIF

2.63%

4.27%

5.42%

4.01%

0.00.51.01.52.02.53.03.54.04.55.05.56.0 Jan'20 Jan'21 Jan'22 Jan'23 Jan'24 Yield ‐ %
INVESTMENT YIELDS (5‐yr Period)
City Portfolio 2‐yr Treasury 3‐mo Treasury LAIF
ENDING BALANCE AS OF January 31, 2024
Book
Description ValueRiver City Bank Lockbox Account 5,049,674 $ River City Bank ICS (Investment Account) 11,882,385Total Cash and Investments $ 16,932,058 January 31, 2024
ATTACHMENT 2

COMMUNITY CHOICE ENERGY (CCE)

CITY OF SANTA BARBARA
Summary of Cash and Investments
1 1

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Administration Division, Parks and Recreation Department SUBJECT: Second Contract Amendment with Architectural Resources Group in the Amount of $20,400 for the Plaza del Mar Band Shell Repair Project [Agreement]
RECOMMENDATION:

That Council authorize the Parks and Recreation Director to execute a Second Amendment to the Agreement with Architectural Resources Group for the Plaza del Mar Band Shell Repair Project, Contract No. 26,895, in the amount of $20,400 for a total project expenditure authority of $121,250.

DISCUSSION:

Originally constructed in 1919, the Plaza del Mar Band Shell was designed by Windsor Soule in the Mission Revival Style. The Plaza del Mar Band Shell Repair Project (Project) has been undertaken to rehabilitate this important City landmark by providing necessary structural repairs, repairs of the roofing and associated waterproofing, and completing exterior envelope repairs. Included in the Project's scope of work are electrical upgrades including new stage lighting and security lighting and needed accessibility upgrades such as a wheelchair ramp with stage access and a new paved accessible path between the ramp and lawn seating area.

On March 30, 2021, the Parks and Recreation Department (Department) entered into an architectural and engineering professional service agreement (Agreement) with Architectural Resources Group (ARG). The agreed compensation for all services under the Agreement was $82,593. An additional compensation allowance of $8,259 was included in the Agreement to cover any additional costs resulting from necessary changes in the scope of work.

Prior to the start of construction, the Department and ARG executed the First Amendment to the Agreement to add additional work hours at varying rates for extra services during Agenda Item No. 8
File Code No. 160.01
Council Agenda Report
Second Contract Amendment with Architectural Resources Group in the Amount of $20,400 for the Plaza Del Mar Band Shell Repair Project [Agreement] February 27, 2024

construction administration along with a $10,000 increase in the compensation amount to allow for the continuation of extra services throughout the renovation process. Prior to approval of the construction drawings, Public Works Engineering required ARG to provide plan clarifications which expended the $8,259 extra services contingency.

Currently, the Project remains under construction with seventy percent of the work completed. The time for performance under the Agreement was originally contemplated to be five months; however, significant termite damage of the Plaza del Mar band Shell has necessitated that the Project time for completion be extended by an additional four months with a new completion date of April 12, 2024. Furthermore, due to this significant unforeseen structural damage, the construction administration time has been greater than anticipated and will deplete the $10,000 extra services contingency.

Consequently, in order to complete the project, an additional amount of $20,400 is needed for construction administration services, cost estimating, and the design options for a temporary protective fence. The Project is Categorically Exempt under CEQA Guidelines section 15301 for Existing Facilities and has received a Coastal Exemption.

BUDGET/FINANCIAL INFORMATION:

The existingAgreement, including the two previously authorized extra services increases, totals $100,852. The proposed Second Agreement Amendment with ARG will increase the total not-to-exceed amount by $20,400 for a new not-to-exceed total of $121,250. There is sufficient expenditure appropriation in the Department’s Fiscal Year 2024 Budget for the Project.

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

PREPARED BY: Justin Van Mullem, Capital Project Supervisor SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Finance Department
SUBJECT: Third Amendment to the Workplace Investigation Services Agreement [Agreement]
RECOMMENDATION:

That Council authorize the City Administrator to execute a third amendment to Agreement No. 22300249/28,381 for special investigation services with Aisha Shelton Adam of Adam Investigations Counsel, P.C. to increase the not-to-exceed amount from $130,000 to $155,000 for services related to existing personnel matters.

DISCUSSION:

There is a need to contract with an outside investigator on personnel matters. The dominant purpose of the workplace investigation is for the investigator to gather facts and issue a report to the assigned attorney from the City Attorney’s Office. The staff attorney will rely upon the facts and report to provide legal advice to the City. Therefore, this investigation and accompanying work product falls under the attorney-client privilege that belongs to the City.

The staff from the City Attorney’s Office and the Human Resources Department selected the firm Adam Investigations Counsel, P.C. to address the current needs. Staff selected the firm based on its unique skills and expertise to address the assigned personnel matters.

Risk Management provides funding and financial oversight for contracts related to claims and litigation. The tasks assigned to the investigator exceed the established $130,000 threshold. Increasing the value of the agreement allows the firm to complete the investigation and submit its findings to the City Attorney’s Office.

BUDGETARY IMPACTS:

The Self-Insurance Fund (SIF) uses the existing appropriations established in the adopted budget to pay for legal support and related investigation costs for these types of Agenda Item No. 9
File Code No. 160.03
Council Agenda Report
Third Amendment to the Workplace Investigation Services Agreement [Agreement] February 27, 2024

cases. Risk Management continues to monitor expenditure appropriations and actual expenses related to all the open cases. The additional costs associated with these investigations combined with expenses on other open cases may lead Risk Management to propose additional expenditure appropriation using SIF available reserves as part of the quarterly budget review process as necessary.

SUBMITTED BY: Mark W. Howard, Risk Manager
APPROVED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Community Vitality Initiatives Division, Community Development Department
SUBJECT: HOME Tenant-Based Rental Assistance Grants [Agreement} RECOMMENDATION: That Council:

A. Approve a new agreement with New Beginnings Counseling Center in the amount of $500,000 using federal HOME Investment Partnerships Program (HOME) Funds to continue providing Tenant-Based Rental Assistance services; B. Approve a new agreement with Transition House in the amount of $200,000 using HOME Funds to continue providing Tenant-Based Rental Assistance services; C. Approve a new agreement with the Housing Authority of the City of Santa Barbara in the amount of $250,000, using HOME Funds to continue providing Tenant-Based Rental Assistance services; and
D. Authorize the Community Development Director to execute such agreements, amendments, and related documents, subject to approval as to form by the City Attorney.

EXECUTIVE SUMMARY:

In addition to allowing property acquisition, new construction, and rehabilitation, the Federal HOME program authorizes participating jurisdictions to create flexible programs that provide rental assistance to low-income households, enabling them to rent market-rate units. These programs are known as Tenant-Based Rental Assistance (TBRA). The City of Santa Barbara has been utilizing a portion of its annual HOME entitlement award to fund TBRA programs since 2012.

Agenda Item No. 10
File Code No. 610.05
Council Agenda Report
HOME Tenant-Based Rental Assistance Grants [Agreement]
February 27, 2024

The City last awarded TBRA funds to New Beginnings, Transition House, and the Housing Authority of the City of Santa Barbara in 2021. These funds are now nearly depleted, and all three organizations have submitted written requests for additional HOME funds for continued operation of their TBRA programs. As discussed below, all three applicants are recommended for additional funding.

DISCUSSION:

HOME TBRA Programs
HOME TBRA Programs operate similarly to the Section 8 Program. TBRA grants may facilitate a one-time utility and/or security deposit payment and/or monthly rental housing assistance for up to 24 months to low-income households, including homeless persons and those at imminent risk of becoming homeless. Participants’ incomes may be no more than 60 percent of the Area Median Income (AMI), as determined by the U.S. Department of Housing and Urban Development (HUD), adjusted for household size. For example, to qualify for TBRA assistance, the maximum annual income limit for a family of four would currently be $88,740.

Tenant-Based Rental Assistance is provided through the issuance of a housing voucher from the program administrator (the subrecipient organization) to the tenant. Once a unit is identified, the program administrator inspects the unit to ensure it meets federal Housing Quality Standards. The program administrator reviews the monthly rent amount to ensure it is appropriate given the unit’s size, location, and condition. Administrators also review the lease to ensure that it does not contain terms prohibited by HUD. Once these requirements are met, the owner and tenant execute a lease.

Rent is paid directly to the unit owner from two sources: 1. the portion paid by the tenant (tenant share), which equals 30 percent of household income; and 2. the portion paid by the TBRA administrator (rental subsidy), which covers the difference between the rent and the tenant share. TBRA-subsidized units are inspected annually to ensure that they continue to meet Housing Quality Standards, and household income is also reviewed annually to ensure that households are still eligible.

Each proposed program described below conforms to guidelines established by HUD for administering TBRA programs and satisfies the housing needs and priorities established in the City’s Five-Year Consolidated Plan for use of federal funds, including HOME.

Following are descriptions of the organizations recommended for HOME TBRA funds. The number of assisted households anticipated to be served by each organization are estimates only, as they depend on various factors such as individual household income, rent amounts, and length of assistance necessary.

Council Agenda Report
HOME Tenant-Based Rental Assistance Grants [Agreement]
February 27, 2024

New Beginnings
New Beginnings will utilize TBRA funding for rapid rehousing under its Safe Parking Program and its Veterans Administration–accredited Supportive Services for Veteran Families (SSVF) Program. The population to be served includes homeless individuals, vehicular homeless individuals, and homeless veterans.

The Safe Parking Program is a nationally recognized model that provides safe overnight parking shelter to people living in their vehicles.1 Services include rapid rehousing, case management, and temporary financial assistance to move people into secure housing and employment. The program also provides job training and crisis intervention.

New Beginnings has been a recipient of City TBRA funds since 2017 and, to date, has provided rental assistance to 131 households. Funds under the current grant that Council approved in 2021 are nearly depleted, and the agency will not be able to continue assistance without new funds. New Beginnings requested $500,000 to continue housing 13 existing households, and to assist up to 65 new households with security deposit, and/or monthly rental assistance. If approved, this agreement will be in effect until December 31, 2026.

Case management will be provided to all clients and paid for through other funding sources.

Transition House
Transition House’s rapid rehousing program moves homeless families with children into permanent rental housing while providing ongoing case management aimed at housing stabilization. Case management is provided from six months (minimum) to 24 months and includes employment assistance, landlord engagement, and medical and mental health support, among other services.

Transition House has been a recipient of City TBRA funds since 2012 and, to date, has provided rental assistance to 134 households. Funds under the current grant that Council approved in 2021 are nearly depleted, and Transition House will not be able to continue assistance without new funds. If approved, this agreement will be in effect until December 31, 2026. TBRA includes security deposit and monthly rent assistance. Case management will be funded through Transition House’s other funding sources. Transition House requested $200,000 and anticipates assisting up to 25 households.

Housing Authority of the City of Santa Barbara
The Housing Authority has an established track record of providing affordable rental assistance in the community for more than 50 years. The Housing Authority has been a recipient of City TBRA funds since Fiscal Year 2012 and has provided rental assistance to 125 households to date.
1 The 2023 Santa Barbara County Point in Time Count showed that 51 percent of the countywide unsheltered population lives in their vehicles.

Council Agenda Report
HOME Tenant-Based Rental Assistance Grants [Agreement]
February 27, 2024

The proposed Housing Authority TBRA program is designed to provide housing first, with rental assistance vouchers and security deposit assistance given to those on Housing Authority’s Section 8 waiting list, chronically homeless individuals, and unhoused families residing in Santa Barbara. Veterans, elderly and disabled individuals, and families will benefit from the funding. The TBRA program provided security deposit assistance to persons moving into Vera Cruz Village last summer.

Case management is provided to TBRA participants by the Housing Authority through its Supportive Services program. This is a well-established clinical case management program that offers individualized support to any Housing Authority client in need, including individuals and families with a history of homelessness. By pairing rental assistance with these essential supportive services, the clientele have a greater chance of stability.

Funds under the current grant that Council approved in 2021 are nearly depleted, and the Housing Authority will not be able to continue assistance without new funds. If approved, this agreement will be in effect until December 31, 2026. The Housing Authority has requested $250,000 and will provide continued assistance to 14 existing households and eight new households.

BUDGET/FINANCIAL IMPACT:

There are sufficient expenditure appropriations in the Fiscal Year 2024 HOME Fund budget to support the recommended contracts. The recommended TBRA grants will exhaust all available HOME funds. Additional HOME funds will be available in Fiscal Year 2025 when HUD releases annual funding allocations.

Copies of the contracts/agreements are available for public review by contacting Liz Stotts, Homelessness Programs Analyst, at [email protected].

PREPARED BY: Liz Stotts, Homelessness Programs Analyst
SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Wendy Levy, Human Resources Director
SUBJECT: City Administrator Employment Agreement [Agreement] RECOMMENDATION:

That Council approve and authorize the Mayor to execute an employment agreement with Kelly McAdoo to serve as the permanent City Administrator effective May 20, 2024.

DISCUSSION:

On February 13, 2024, City Council appointed Kelly McAdoo to serve as the new permanent City Administrator. Ms. McAdoo was selected through a comprehensive national recruitment process and is an experienced public administrator with over 20 years of local government experience.

Ms. McAdoo comes to the City of Santa Barbara from the City of Hayward, where she has served as the City Manager/Chief Executive Officer since 2016. Prior to that role, she served in various high-level positions with the cities of Hayward, Palo Alto, and Fremont.

Ms. McAdoo is known for building effective community relationships, fostering productive and creative leadership teams, and cultivating successful employer – employee relations through transparency and collaboration. Her commitment to innovation, diligence in community engagement efforts and organizational development have paved the way for successful partnerships in all aspects of government administration.

Ms. McAdoo holds bachelor’s degrees in Political Science, Economics, and International Studies, and a master’s degree in Public Administration, all from the University of Kansas. Her commitment to lifelong learning and leadership development is evident through her completion of the Harvard Kennedy School State and Local Executives Program and a two-year Leadership Program with the International City/County Management Association. Ms. McAdoo’s background and service with other agencies complement the City of Santa Barbara’s needs and demonstrate that her selection will serve our city well.

Agenda Item No. 11
File Code No. 440.03
Council Agenda Report
City Administrator Employment Agreement [Agreement]
February 27, 2024

The proposed employment agreement is attached. Ms. McAdoo will be appointed with a compensation level of $342,281 plus benefits. This compensation will be reviewed annually with her performance evaluation.

BUDGET / FINANCIAL INFORMATION:

In addition to the salary outlined in the employment agreement, Ms. McAdoo will receive the fringe benefit package budgeted in fiscal year 2024 in accordance with Group I of the Management Performance and Compensation Plan. Adequate expenditure appropriations exist in the City Administrator department budget for FY 2024.

ATTACHMENT: Employment Agreement with Kelly McAdoo
SUBMITTED BY: Wendy Levy, Human Resources Director
APPROVED BY: Randy Rowse, Mayor

EMPLOYMENT AGREEMENT
Agreement No.

The City of Santa Barbara, a municipal corporation, hereinafter referred to as "Employer" and Kelly McAdoo, an individual, hereinafter referred to as "Employee" enter into this Agreement on February 27, 2024, for Employee's services as City Administrator for the City of Santa Barbara.

WHEREAS, this Agreement is made under Article VI of the Santa Barbara City Charter, as a municipal affair; and
WHEREAS, the City Council of Employer, hereinafter "City Council," determined that Employee has the necessary qualifications and experience for the Office of City Administrator as required by the City Charter; and WHEREAS, on February 27, 2024, the City Council appointed Employee to the Office of City Administrator, with an effective date of May 20, 2024; and WHEREAS, Employer and Employee enter into this Agreement to document the terms and conditions of employment.

NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

SECTION 1. TERM AND STATUS.

A. Employer employs Employee to serve as City Administrator and in that capacity, to also hold the offices of City Clerk and City Treasurer (“ancillary offices”). The duties of the ancillary offices may be delegated to the Director of Finance and the City Clerk Services Manager. The term of this Agreement shall be from the Effective Date until terminated pursuant to the terms of this Agreement.

B. Employee's employment status is at-will and at the pleasure of the City Council. Employee understands and agrees that the City Council may terminate her City employment at any time, subject only to the notice, removal and severance provisions of Section 5 of this Agreement and Section 606 of the City Charter.

Employee understands and agrees that Employer has made no implied or express oral or written assurances of continued employment with the City. Employee further understands and agrees that she has no property right in City employment and that Employer requires no cause to suspend or terminate her City employment.

SECTION 2. POWERS AND DUTIES.

A. Employee shall perform the duties of City Administrator as set forth in Article VI of the City Charter and as determined and controlled by the City Council. Employee shall report directly and solely to the City Council.

ATTACHMENT

B. In the performance of the duties of City Administrator, Employee agrees to comply with all federal, state and local laws, ordinances, rules, regulations and City Charter, which are applicable to the Office of the City Administrator. Employee acknowledges that she is subject to the common law and statutory conflict-of-interest provisions, including, but not limited to, the Political Reform Act set forth in California Government Code Section 87100 and following, the Fair Political Practices Commission Regulations set forth in California Code of Regulations, Title 2, Section 18700 and following, and California Government Code Section 1090 and following, as they may be amended. Employee agrees that she will be acquainted with the above- referenced provisions, comply fully with them and not take any action, which results or could appear to result, in a violation of such provisions.

SECTION 3. COMPENSATION.

A. Base Salary.

As compensation for Employee's services, Employer agrees to pay Employee, on a bi-weekly basis, an annual base salary of $342,281.

B. Changes to Compensation.

Employee's compensation, as provided herein, shall be reviewed annually and may, from time to time, be increased based on Employee's satisfactory performance, as solely determined by the City Council. Such increases will be established by ordinance. Any increases so approved shall inure to Employee without amendment of this Agreement.

C. Health and Welfare Benefits.

Employee shall receive the same health and welfare benefits provided to the City's Group 1 Managers ("Executives"), including, but not limited to, long term disability and life insurance, as set forth in the Management Performance and Compensation Plan.

D. Retirement.

Employee shall receive retirement benefits through the Public Employees Retirement System (hereinafter "PERS") Miscellaneous Plan. Employee shall pay a variable contribution toward retirement under the same formula applicable to the City's Group 1 Managers.

E. AutomobileAllowance.

Employee shall receive an automobile allowance of $755 per month which shall be indexed on a percentage basis with changes in the Internal Revenue Service mileage reimbursement rate for business travel, as provided under Resolution 90- 012, and increased or decreased, as appropriate, without amendment of this Agreement.

F. Leave.

Employee shall receive the same leave benefits provided to the City's Group 1 Managers, including, but not limited to, holiday leave and catastrophic leave, as set forth in the Management Performance and Compensation Plan.

G. Relocation Expenses.

Employer shall reimburse Employee for documented moving expenses incurred as a result of Employee relocating her residence to a location within the boundaries of the City per Charter Section 601, provided that such reimbursement shall be capped at $16,820 and shall be paid only if such documented moving expenses are incurred within one year of the effective date of this Agreement.

Additionally, Employee will receive a monthly housing allowance of $3423 for a period of 36 months.

F. Professional Development and Business Expenses.

Employer acknowledges its mutual interest in the continuing professional development of Employee. Employee agrees to devote all professional time and attention to the City's business during the term of this Agreement.

Employer agrees to allow and pay for professional dues and subscriptions of Employee for continuation and full participation in national, regional, state, and local associations, including, but not limited to, International City/County Management Association (ICMA), the League of California Cities, and such other organizations necessary and desirable for Employee's continued professional participation, growth, and advancement and for the good of the Employer.

Employer agrees to pay travel and subsistence expenses of Employee for conferences in a manner consistent with the treatment of other Executive employees and consistent with the City's policies and procedures for travel and training reimbursement. Employer agrees to reimburse Employee for reasonable business expenses to conduct non-conference related City business including meals, travel, and lodging.

Employee will present a proposed budget for professional development and business expenses to the City Council for review and approval at the beginning of each fiscal year.

SECTION 4. PERFORMANCE EVALUATION.

Employer shall evaluate the performance of Employee, as City Administrator, on an annual basis. Employee shall be responsible for providing written notice to the City Council of the need to complete the performance evaluation.

Employee understands and agrees that the failure to evaluate Employee annually, shall not affect the rights of the parties in this Agreement, including termination of Employee's employment.

SECTION 5. TERMINATION.

A. Termination by Employee.

Employee may voluntarily resign as City Administrator by delivering a letter of resignation to the City Council not less than 30 days prior to the effective date of termination. Employee is not entitled to any severance pay detailed in Section 5(B)(3) if she resigns or retires.

B. Termination by Employer.

1. Employer may unilaterally terminate Employee's employment, with or without cause, in accordance with Sections 600 and 606 of the City Charter. No cause for termination need exist because Employee recognizes that she serves at the pleasure of the City Council as an at-will employee. Except as otherwise provided by this Agreement or by law, Employee agrees that she is exemptfrom any pre- or post-termination due process rights (such as Skelly rights or a name clearing hearing).

2. Employer shall provide Employee at least 30 days’ notice prior to the effective date of termination except if termination is for cause as detailed in Section 6 below.

3. Employee shall receive six (6) months’ severance pay consisting of Employee's base salary, the cash value of twelve (12) months of cafeteria plan and automobile allowances at the effective date of termination and a cash payment of accrued leaves. The PERS Retirement contribution shall not be included in the severance pay. Nothing in this Section shall extend the amount of time served for purposes of receiving any benefit provided in thisAgreement.

SECTION 6. TERMINATION FOR CAUSE.

If Employee is terminated “for cause”, City shall have no obligation to notice to Employee prior to any “for cause” termination or to provide severance benefits. All payments of salaries and benefits in this Agreement shall cease, however, Employee will be paid salary and benefits through the date of termination in accordance to City policy and the law. The term “for cause”, as used in this Agreement, shall mean any of the following: a) conviction of a felony; b) conviction of an act involving moral turpitude or illegal gain; c) a plea of nolo contendere involving a conviction of a felony or an act involving moral turpitude or illegal gain; d) any act constituting a knowing and intentional violation of the City’s Conflict of Interest Code.

SECTION 7. INDEMNIFICATION.

A. In accordance with and to the extent provided by California’s Tort Claims Act (Government Code Section 825 et seq.) and Government Code Sections 995- 996.5, the City shall defend and indemnify Employee against and for all losses sustained by Employee in direct consequences of the discharge of Employee’s duties on the City’s behalf for the period of Employee.

B. In addition to the requirements under Section 7A, City shall defend, save harmless and indemnify Employee against any tort, professional liability claim, demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Administrator or resulting from the exercise of judgment or discretion in connection with the performance of program duties or responsibilities unless the act or omission involved willful or wanton conduct. City shall indemnify Employee against any and all losses, damages, judgments, interest, settlements, fines, court costs, and other costs and expenses of legal proceedings including attorneys' fees, and any liabilities incurred by, imposed upon, or suffered by such Employee in connection with or resulting from any claim, action, suit, or proceeding, actual, or threatened, arising out of or in connection with the performance of her duties. Any settlement of any claim must be made with prior approval of the City in order for indemnification to be available, as provided in this Section.

SECTION 8. PROVISIONS OF GOVERNMENT CODE SECITON 53243.4 et seq.

A. In the event that the City provides paid leave to City Administrator pending an investigation of a crime involving abuse of her office or position covered by Government Code Section 53243.4, and should that investigation lead to either a criminal conviction or a civil or administrative penalty by the FPPC or any similarly authorized agency, City Administrator shall fully reimburse the City for any salary provided for that purpose.

B. In the event that the City provides funds for the legal criminal defense of

City Administrator pending an investigation of a crime involving abuse of her office or position covered by Government Code Section 53243.4, and should that investigation lead to either a criminal conviction or a civil or administrative penalty by the FPPC or any similarly authorized agency, City Administrator shall fully reimburse the City for any funds provided for that purpose.

C. In the event that the City provides City Administrator with severance, or any other type of cash settlement related to the termination of City Administrator, and City Administrator subsequently is convicted of a crime, or subjected to civil or administrative penalties, resulting from abuse of her office or position covered by Government Code Section 53243.4, City Administrator shall fully reimburse the City for any such severance or cash settlement.

D. This provision shall not be interpreted or construed as creating a contractual obligation on the City to provide paid leave, a legal criminal defense or cash settlement related to an investigation or termination of City Administrator.

SECTION 9. WAIVER OF CLAIMS.

Acceptance by the City Administrator of the severance pay benefits provided by this Agreement shall operate as a full and complete waiver and release of any and all rights, claims, and/or causes of action which the City Administrator may have, or have had, at any time, in the past or in the future, arising out of the City Administrator's employment by the City, including, but not limited to, claims for wrongful termination of this Agreement. If the City Administrator wishes to retain any such rights, the City Administrator must decline to accept the severance benefits provided by this paragraph. The City Administrator shall notify the City of this election to accept or reject these severance benefits within seven (7) days of notice of termination of this Agreement, or within such other time period as the Parties may agree to in writing.

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR

AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY

HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH
THE DEBTOR.

The severance provisions of this Agreement shall not apply in the event the City Administrator is terminated for cause as provided for in Section 6.

SECTION 10. MISCELLANEOUS.

A. Use and administration of benefits shall conform to the requirements of the Management Performance and Compensation Plan and any other City policy or regulation, unless otherwise specified in thisAgreement.

B. This Agreement may be amended at any time by mutual agreement of

the City and the City Administrator. Any amendments are to be negotiated, put in writing, and adopted by the City Council.

This Agreement is a personal services agreement, and as such, may not be assigned by either party.

C. This Agreement shall be construed in accordance with the laws of the State of California, and the Parties agree that venue shall be in Santa Barbara County, California, notwithstanding any conflicting provisions of the California Code of Civil Procedure.

D. If any clause, sentence, part, section, or portion of this Agreement is found by a court of competent jurisdiction to be illegal or unenforceable, such clause, sentence, part, section, or portion so found shall be regarded as though it were not part of this Agreement and the remaining parts of this Agreement shall be fully binding and enforceable by the Parties hereto.

The parties hereto have executed this Agreement in duplicate the day and year noted above.

CITY OF SANTA BARBARA
_________________________
Randy Rowse
Mayor
Attest:
__________________________
Sarah Gorman
City Clerk Services Manager
Approved as to form:
__________________________
John Doimas
Assistant City Attorney
________________________
Kelly McAdoo, an individual

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Administration Division, Fire Department
SUBJECT: Accept Donations from One805 for Thermal Imaging Cameras, Extrication Equipment, and Socks
RECOMMENDATION:

That Council accept donations from the One805 charity organization for thermal imaging cameras; a $10,000 donation for a battery-operated extrication tool; and a donation of 106 socks; for fire personnel.

DISCUSSION:

One805 has made three generous donations to the Fire Department that will enhance operations and improve community safety:

1. Eight thermal imaging cameras were donated and placed on all frontline apparatus. The cameras display infrared imaging of thermal anomalies providing firefighters a clear view into the darkest, smokiest environments. Thermal images improve the ability to navigate, make accurate decisions, and find victims faster.

The value of this donation is around $8,000.

2. One805 also donated $10,000 for the purchase of a battery-operated extrication device. The extraction tool uses hydraulic technology to rescue people from emergency situations, primarily car crashes.

3. One805 also donated 106 pairs of hiking socks for fire personnel.

BUDGET/FINANCIAL INFORMATION:

The total cost for a Hurst combi-tool battery-operated extrication device is $17,085.81.

The balance will be paid with Fire Department Measure C equipment replacement funds allocated for Fiscal Year 2024.

Agenda Item No. 12
File Code No. 520.03
Council Agenda Report
Accept Donations from One805 for Thermal Imaging Cameras, Extrication Equipment, and Socks
February 27, 2024

PREPARED BY: Amy Van Atta, Fire Business Manager
SUBMITTED BY: Chris Mailes, Fire Chief
APPROVED BY: City Administrator's Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Water Resources Division, Public Works Department SUBJECT: Water and Wastewater Rate Studies Revenue Requirements RECOMMENDATION: That Council:

A. Receive a presentation on the City’s water and wastewater rate studies and the required rate revenue increases; and
B. Direct staff to complete a cost-of-service analysis and return with a proposed rate notice.

EXECUTIVE SUMMARY:

In accordance with State law, the Water Fund and Wastewater Fund revenues must be sufficient to meet the City’s expenditures for providing water and wastewater services.

Several factors are requiring an increase in funding such as: higher than anticipated inflation, revised methodologies for allocating costs for internal services, lower than anticipated water sales, and increasing policy reserves to keep pace with increasing capital costs. Below are the revenue requirement options for Water with staff recommending Option 2:

Option FY25 FY26 FY27 FY28
Water Option 1
Funds Planned Capital
Reserves at Policy

16.0% 12.0% 5.0% 5.0%
Water Option 2
Funds Planned Capital
Reserves Below Policy

12.0% 12.0% 9.0% 9.0%
Water Option 3
Reduced Capital
Reserves Below Policy

10.0% 9.5% 9.5% 9.5%
Agenda Item No. 13
File Code No. 540.1
Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

Below are the revenue requirement options for Wastewater with staff recommending Option 2:

Option FY25 FY26 FY27 FY28
Wastewater Option 1
Funds Planned Capital
Reserves Below Policy

12.0% 12.0% 12.0% 12.0%
Wastewater Option 2
Defers Planned Capital
Reserves Below Policy

10.5% 10.0% 10.0% 9.5%
Both staff-recommended options for Water and Wastewater result in funding planned capital needs while mitigating rate increases to customers by utilizing reserves. Reserves will return to policy levels by the end of the rate-setting period (FY28) for both funds.

DISCUSSION:

Background
The City regularly conducts water and wastewater rate studies, which include rate revenue projections for the next 10 years. On October 3, 2023, City Council approved a contract with HDR Engineering Inc. (HDR) to conduct a comprehensive study. The last water rate study was completed in 2021 and the last wastewater rate study was completed in 2022.

The City provides water and wastewater services to a population of 95,000, with a service area of 20 square miles. The City’s water and wastewater utilities depend on customer rate revenue to fund most of the operations, maintenance, and capital improvements needed to keep the utility functioning reliably and in compliance with federal and state regulations.

HDR is creating 10-year financial plans and multi-year rate studies for both water and wastewater with the intention to set rates for the next four fiscal years. A comprehensive rate study consists of three interrelated analyses to address the adequacy and equity of a utility’s rates: a revenue requirement analysis, a cost-of-service analysis, and a rate design analysis. The rate studies are currently in the revenue requirement analysis phase, in which staff and HDR determine the amount of revenue that must be generated from the proposed rates to sufficiently fund the costs of operations and maintenance, capital improvements, mandated standards, debt obligations, contributions to reserves, and other obligations. The projected costs and the revenues generated must be in line to meet the costs of the City’s water and wastewater systems.

As mentioned, some of the main drivers contributing to the rate increases include:
 Inflation outpaced assumptions in previous water and wastewater models for both operations & maintenance and capital.

Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

 Significant increases in allocated costs for internal services (IT, Fleet).  Property and liability insurance rates increasing 20% and 17% annually over the rate-setting period.
 Reduction in water demand and thus revenues (10%) due to an above average wet winter in calendar 2023.
 Increased capital policy reserve minimum due to increased capital costs.

Reserves
The City’s Reserves Policy (Resolution No. 23-124, adopted on October 11, 2023) established guidelines regarding minimum reserve levels for the various City funds to ensure ongoing fiscal security. There are several types of reserves detailed below that apply to the Water Resources Enterprise funds:
 Disaster – calculated at 15% of the most recently adopted fiscal year operating expenditure budget. This reserve is restricted for use in addressing impacts of natural disasters, such as storms, fires, droughts, etc. and may be used only after other available funds are exhausted, including Contingency reserves. The use of this reserve requires Council action.
 Contingency – calculated at 10% of the most recently adopted fiscal year operating expenditure budget. This reserve may be used to address the fiscal impacts of unexpected events such as economic recession. The use of this reserve requires Council action.
 Capital – calculated at the lesser of 5% of the value of capital assets or the average of the planned capital program for the upcoming three years. This reserve is intended to address unexpected capital projects or unanticipated increases in capital project costs.
 Rate Stabilization – required by debt agreements, the minimum requirement is $1M for Wastewater and $2.9M for Water. These reserves are unique in that they can be considered revenue for the purpose of debt service coverage in a given year. Staff may make additional contributions to these reserves if there are anticipated threats to revenues, such as mandatory water conservation or other negative impacts on revenues.

For options where the proposed use of reserves brings reserves below Policy level, staff are recommending only the use of Capital Reserves. The recommendation is that Disaster, Contingency, and Rate Stabilization Reserves remain at Policy levels in all options. In addition, for all options, reserves will return to Policy levels by the end of the rate-setting period (FY28).

WATER
Three options have been developed for meeting the Water revenue requirement that balances the different levels of capital improvements and funding from reserves. It is important to note that before the recent spike in inflation, the 2021 water rate study identified the need for a 5% rate revenue increase in FY25, 4.5% in FY26, and 4% in FY27 and FY28.

Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

Option 1 – Fund the Planned Capital Program and Maintain Reserve Levels at City Policy The water system will need to maintain rates that support upcoming projects identified in the Water Distribution Infrastructure Plan and other capital improvements, including replacing ~2% or six miles of water mains annually. Approximately $178M in necessary capital investments in the water system have been identified over the four-year rate study period (FY25-28). A combination of financing (long-term borrowing) and pay-as-you-go funding will be utilized to meet these capital improvement needs in addition to the use of reserves at a level that will keep reserves at or above City policy.

Option 2 – Fund the Planned Capital Program and Allow Reserve Levels to Drop Below City Policy
This option includes the same planned capital program as Option 1 but funds the program using capital reserves to mitigate rate impacts. Under this option, capital reserves go below City policy by about $6M (~20%) before returning to City policy levels by the end of the rate-making period (FY28).

Option 3 – Reduce Water Main Replacement Funding and Allow Reserve Levels to Drop Below City Policy
This option reduces the Water Main Replacement Program funding by 17%, which equates to approximately five miles of mains annually, gradually restoring funding for the full six miles of replacement in the fourth year of the rate study. This will bring the necessary capital investments down to approximately $170M over the four-year rate study period (FY25-28). In addition to a combination of long-term borrowing and pay-asyou-go funding, this option uses capital reserves to mitigate rate impacts. Capital reserves drop below City policy by about $2.8M (~10%) before returning to City policy levels by the end of the rate-making period (FY28).

Analysis of the three options indicates the approximate annual revenue increases in the table below will be sufficient to meet the needs of the water system.

Option FY25 FY26 FY27 FY28
Water Option 1
Fully Funded Capital
Reserves at Policy

16.0% 12.0% 5.0% 5.0%
Water Option 2
Fully Funded Capital
Reserves Below Policy

12.0% 12.0% 9.0% 9.0%
Water Option 3
Reduced Capital
Reserves Below Policy

10.0% 9.5% 9.5% 9.5%
It is important to note that revenue increases do not equate to rate increases (or bill impacts) to individual customer classes of service. During the cost-of-service analysis phase of the project, the revenue requirements (e.g., costs) are proportionally distributed Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

to each customer class, which may result in rate increases that are lower and/or higher than the revenue requirement percent increase for each customer class.

Water Conservation
Water usage in FY23 was lower than in past years due to the wet winter the City experienced in early 2023. The unplanned drop in water use in FY23 resulted in a decrease in planned revenue of $4.6M. The Enhanced Urban Water Management Plan had anticipated around 3% increases in water use annually between WY2020-2027, which assumed some moderate growth in demand as the City emerges from the last drought, along with decreases in demand from typical water conservation associated with changes in landscaping and plumbing fixtures. However, rate increases of the magnitude proposed in this study and the recent wet winter are anticipated to keep water usage at relatively low levels. For this rate study, water usage is assumed to remain steady (similar to FY23) for the next four years. The model also assumes 0.5% annual growth in the number of customers within the multi-family customer class as a result of new developments.

Water Customer Class Prioritization
One aspect of creating the City’s volumetric water rates is assigning and distributing the City’s various water supplies to the different customer classes and tiers. The water sources are allocated based on priority levels set by the City Council. The highest priority customer tiers receive the least expensive sources of water. The current prioritization is as follows:

Existing Customer Class Prioritization
Customer Class/Tier Priority Usage (HCF) % of Total
Tier 1 Irrigation Agriculture 1 43,662 1.19%
Tier 1 Irrigation Recreation 2 46,360 1.26%
Tier 1 Single Family Residential 2 681,764 18.53%
Tier 1 Multi-Family Residential 2 819,235 22.27%
Tier 1 Commercial 3 665,981 18.10%
Tier 2 Single Family Residential 4 685,009 18.62%
Tier 2 Multi-Family Residential 4 203,482 5.53%
Tier 1 Irrigation Urban (Res/Comm) 4 94,672 2.57%
Tier 2 Commercial 5 120,122 3.27%
Tier 3 Single Family Residential 5 219,400 5.96%
Tier 3 Multi-Family Residential 5 67,879 1.85%
Tier 2 Irrigation Agriculture 5 688 0.02%
Tier 2 Irrigation Recreation 5 3,406 0.09%
Tier 2 Irrigation Urban (Res/Comm) 5 26,973 0.73%
Total 3,678,632 100%
Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

The residential customer classes have three tiers of service, reflecting basic health and sanitation water usage, discretionary water usage, and excessive water usage. Irrigation and commercial customer classes have two tiers of usage, reflecting water usage within their customized water budgets, and water usage above their budgets.

The effect of the current ranking shown in the above table is that water usage in tiers considered excessive use or outside the customer’s water budget are allocated to more expensive water sources, resulting in a higher $/HCF* rate. Staff recommendation is to retain this existing prioritization.
*HCF = Hundred Cubic Feet (1 HCF = 748 gallons)
Fixed vs. Volumetric
The City’s water rates consist of a fixed monthly service charge based on meter size, and volumetric charges based on metered customer water use. Historically, the City’s rate design has resulted in a collection of 30% of revenues through fixed charges and 70% of revenues through volumetric charges. It is considered both a water conservation and water rate affordability best management practice to keep fixed charges low so customers may control their bill to the greatest extent possible through their water use.

However, lower revenues from fixed charges create more revenue instability for the Water Fund. About 85% of Water Fund costs are fixed, so decreases in customer demand do not result in a reduction in these fixed operational costs. Therefore, the Water Fund must balance the ratio of revenues from fixed and volumetric rates while considering water conservation, affordability, and financial stability goals.

Staff does not recommend dropping the target percentage of revenue from fixed rates below 30%. This would make the Water Fund increasingly vulnerable to unexpected decreases in customer demand. Decreases in demand would result in decreased revenues and require unplanned use of reserves to cover costs, or delay maintenance and capital projects to reduce costs. In the long term, it is staff’s recommendation that the target revenue derived from fixed charges increase above 30% to elevate the financial stability of the Water Fund. However, as increased fixed charges could have an undesired affordability impact on low-income customers, staff does not recommend adjusting the target now. This adjustment to the target should be investigated following the implementation of low-income water rate affordability programs to help offset increases that would disproportionately impact low-income customers with low water use.

It is important to note that the revenue ratio from the fixed vs. volumetric rate components is a design target for the City’s rates. However, the rates proposed will be based on the cost-of-service analysis and the appropriate and proportionate allocation and distribution of costs to meet the intent of Proposition 218 and its requirements.

Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

WASTEWATER
Two options are presented for meeting the necessary revenue requirements for Wastewater, which balance different levels of capital improvements and funding from reserves. It is important to note the last rate study completed in 2022 anticipated the need for a 6.5% rate increase in FY25, and a 6% increase in FY26-28.

Option 1 – Fund the Planned Capital Program and Allow Reserve Levels to Drop Below City Policy
The wastewater system will need to maintain rates that support upcoming capital improvements to the collection and treatment systems and fund reserves to meet City policy levels. In FY24, reserves were used to balance the budget to offset the record-high inflationary impacts not captured in the existing rates. Approximately $69M in necessary capital investments have been identified over the four-year rate study period (FY25-FY28) which will be funded with a combination of financing (long-term borrowing), pay-as-yougo funding, and the use of capital reserves. Under this option, capital reserves dip below City policy by about $1M (10%) before returning to City policy levels by the end of the rate-making period (FY28).

Option 2 – Reduce Capital Funding and Allow Reserve Levels to Drop Below City Policy This option defers several capital projects totaling $6M to outside of the rate-setting period (FY25-FY28), including rehabilitation of six lift stations, the implementation of an Air Pollution Control District Master Plan, and collection system capacity improvements at the 101 Freeway and near Santa Barbara Junior High School. Funding for the Sanitary Sewer Overflow program is prioritized over this period. Approximately $63M in necessary capital investments have been identified over the four-year rate study period under this option which will be funded with a combination of financing (long-term borrowing), payas-you-go funding, and the use of capital reserves. Under this option, capital reserves drop below City policy by about $300K before returning to City policy levels by the end of the rate-making period (FY28).

Analysis of the two options indicates the approximate annual revenue increases in the table below will be sufficient to meet the needs of the wastewater system.

Option FY25 FY26 FY27 FY28
Wastewater Option 1
Fully Funded Capital
Reserves Below Policy

12.0% 12.0% 12.0% 12.0%
Wastewater Option 2
Defer Capital
Reserves Below Policy

10.5% 10.0% 10.0% 9.5%
It is important to note that revenue increases do not equate to rate increases, or bill impacts, to individual customer classes of service. During the cost-of-service analysis phase of the study, the revenue requirements (e.g., costs) are proportionally distributed Council Agenda Report
Water and Wastewater Rate Studies Revenue Requirements
February 27, 2024

to each customer class, which may result in rate increases that are lower and/or higher than the revenue requirement percent increase for each customer class.

BUDGET/FINANCIAL INFORMATION:

The proposed revenue requirements ensure that both the Water and Wastewater Funds will remain solvent and continue to fund critical capital improvements and ongoing operations. The next step is the cost-of-service analysis, which determines how to equitably allocate the revenue requirements to the different customer classes.

WATER COMMISSION RECOMMENDATION:

This item was presented to the Water Commission on January 18, 2024, and February 15, 2024. The Commission voted 4:0:1 on February 15, 2024, in support of the following actions:
 Water revenue requirement Option 2,
 Wastewater revenue requirement Option 2,
 Maintain current Water customer class prioritization; and  Maintain the target balance of Water revenues at ~30% from fixed charges and ~70% from volumetric charges.

PREPARED BY: Joshua Haggmark, Water Resources Manager/GC/lm SUBMITTED BY: Clifford M. Maurer, Public Works Director APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 27, 2024
TO: Mayor and Councilmembers
FROM: Downtown Team Division, Public Works Department
SUBJECT: Monthly Update on State Street Interim Operations RECOMMENDATION:

That Council receive an update on State Street Interim Operations and discuss, evaluate, and direct pilot program activities.

DISCUSSION:

On August 29, 2023, Council requested staff provide monthly updates about Interim Operations of the State Street Promenade. At this meeting, Staff will provide an update on various directives from Council, including the following:

1. Introduce shuttle service on State Street
Staff is developing a Request for Proposals (RFP) to select a micro-shuttle operator. Per Council’s direction, the RFP will require that the service be accessible to people with disabilities. While publication of the RFP was originally expected by the end of 2023, staffing and workload have delayed this effort.

Publication is now expected by the end of the first quarter of 2024.

2. Implement temporary bike lanes on State Street
Installation of bike lanes on the 500-1200 block of State Street was completed in early December of 2023. Staff continues to work with the Historic Landmarks Commission’s interim operations working group to select appropriate vertical elements to provide and encourage orderly movement on State Street. Initially, the vertical elements will be piloted on the 1200 block, with expansion to other blocks depending on effectiveness.

3. Create accessible passenger drop-off at the Granada Theatre On January 4, 2024, Staff met with management from the Granada Theatre to discuss accessibility requirements for passenger drop-off. Theatre management will assess the feasibility of a temporary accessible ramp. Installation would follow review and approval by City staff. Separately, City staff are evaluating design options for a permanent accessible passenger loading zone at this location.

Agenda Item No. 14
File Code No. 650.05
Council Agenda Report
Monthly Update on State Street Interim Operations
February 27, 2024

4. Establish a fire lane on 00 block of West Victoria Street As discussed at the Interim Operations update on December 5, 2023, a 20-footwide fire lane is required for public safety on the 00 block of West Victoria Street.

The City’s Traffic Engineer developed plans to establish the fire lane and restore two-way traffic to improve circulation. Widening the traffic lanes requires parklets at Bouchon and Olio e Limone, which currently extend approximately 15 feet from the curb to be reduced in width to approximately 9 feet, plus an additional 2 feet for traffic safety barriers. Although there is not a parklet at the Santa Barbara Public Market, any future parklet would be limited to approximately 4 feet in width, with an additional 2 feet for traffic barriers. Traffic safety barriers are required for all parklets adjacent to active roadways. Plans showing the new configuration are included in the attached memorandum.

The roadway will remain in the one-way configuration through the conclusion of the Santa Barbara International Film Festival (SBIFF). The deadline for parklet reconfiguration will be March 4, 2024. Staff began formal outreach to other affected businesses the week of January 8, 2024. As of January 4, 2024, the Public Market had removed their parklet from the street.

5. Examine the configuration of the 1300 block
During the discussion of the 00 block of West Victoria at the Council meeting on December 5, 2023, questions were raised about the configuration of the 1300 block. The City Engineer, City Traffic Engineer, Fire Marshall, and Assistant Chief of Police reviewed the current configuration of the block and identified safety concerns with potential conflicts between contra-flow bicyclists and vehicles backing out of parking spaces.

To address these concerns and improve circulation for both bicycle and vehicle traffic, a revised roadway configuration was approved by the City Administrator on December 18, 2023, pursuant to her authority under Title 31. This revised configuration features a two-way protected bike lane along the southwest curb, a passenger drop-off area in front of the Arlington Theatre, 26 angled parking spaces, and two-way vehicle lanes. This configuration increases loading zone curb space by eliminating the westbound to southbound left turn lane on East Victoria Street. Details of the new configuration are included in Attachment 1).

This change requires the removal of the outdoor business facilities at Opal Restaurant and Carlito’s. Staff began outreach to businesses on the 1300 block the week of January 8, 2024, but paused to allow further consideration of the revised roadway configuration with businesses, the City Engineer, City Traffic Engineer, Fire Marshall, Police Chief, Assistant Chief, and the Interim City Administrator. After considerable further review of many factors, and with particular focus on safety, it was decided that the revised configuration approved by the former City Administrator on December 18, 2023 would be implemented. Title 31 Section 20.020 grants the City Administrator the authority to alter the traffic Council Agenda Report
Monthly Update on State Street Interim Operations
February 27, 2024

patterns on Victoria Street between State Street and Chapala Street and the 1300 Block of State Street.

It is important to note that the proposed configuration is temporary, and the design of this area may change further subject to the State Street Master Planning process.

Notification to business owners of the revised traffic configuration will begin on February 28 and the existing outdoor business facilities must be removed by May 1, 2024.

Implementation of the following previous Council directives is complete:

1. Reprioritize State Street pressure wash schedule. Completed November 2023.

2. Restore northbound vehicle traffic on the 1200 block of State Street. Completed December 2023.

BUDGET/FINANCIAL INFORMATION:

Changes to the 1300 block will require re-paving and re-striping the street, fabricating new storm drain covers, and installing wheel stops. This block was already scheduled for paving and striping, funded by the Streets Operations budget, so these changes will not require any additional funding.

The storm drain covers and wheel stops are estimated to cost approximately $15,000 which will be paid from Measure C Business Corridor Improvement funds.

ENVIRONMENTAL REVIEW:

All of the actions discussed in this report are within the scope of the pilot program under Municipal Code Title 31. Section 5 of the ordinance adopting Title 31 contains a specific finding that the program is exempt from the California Environmental Quality Act (CEQA).

Further, these program changes are exempt from CEQA for the following reasons:

Project Components:

1. Introduce shuttle service on State Street
Per CEQA Guidelines Section 15301 (c) Existing Facilities, this Class 1 exemption consists of the operation of existing public facilities involving negligible or no expansion of use. Subsection (c) exempts the operation of existing streets and transit improvements, such as the shuttle service. This activity meets the criteria of Section 15301 (c) as the introduction of a shuttle service is a transit improvement on existing public facilities and will involve no increase in capacity.

Council Agenda Report
Monthly Update on State Street Interim Operations
February 27, 2024

2. Implement temporary bike lanes on State Street
Per CEQA Guidelines Section 15304 (h) Minor Alterations to Land, Class 4 consists of minor public alterations on the condition of land that does not involve the removal of healthy, mature, scenic trees. Subsection (h) exempts the creation of bicycle lanes on existing rights-of-way. This activity meets the criteria of Section 15304 (h) as the implementation of temporary bicycle lane striping on State Street is a minor alteration that has been designed by the City’s Principal Traffic Engineer and will not result in the removal of trees.

3. Create accessible passenger drop-off at the Granada Theatre Per CEQA Guidelines Section 15301 (c) Existing Facilities, Class 1 consists of the operation of existing public facilities involving negligible or no expansion of use.

Subsection (c) exempts the operation of existing streets such as creating an accessible passenger drop-off at the Granada Theatre, which does not result in expansion of use.

This reconfiguration for the purposes of safety and accessibility meets the criteria of Section 15301 (c) as the accessible passenger drop-off will not result in an expansion of use.

4. Establish Fire Lane on 00 West Victoria Street
Per CEQA Guidelines Section 15301 (c) Existing Facilities, Class 1 consists of the operation of existing public facilities involving negligible or no expansion of use.

Subsection (c) exempts the operation of existing streets such as establishing a fire lane, which do not create additional automobile lanes. The creation of the fire lane will reintroduce two-way traffic (original configuration) and improve circulation. This activity meets the criteria of Section 15301 (c) as the establishment of the fire lane and returning to two-way traffic circulation will not create additional automobile lanes.

5. Examine the configuration of the 1300 block
Per CEQA Guidelines Section 15301 (c) Existing Facilities, Class 1 consists of the operation of existing public facilities involving negligible or no expansion of use.

Subsection (c) exempts the operation of existing streets such as a revised roadway configuration that addresses safety concerns and improves circulation for both bicycle and vehicle traffic. This reconfiguration meets the criteria of Section 15301 (c) as the revised configuration features a two-way protected bike lane along the southwest curb, a passenger drop-off area in front of the Arlington Theatre, 26 angled parking spaces, and two-way vehicle lanes that does not result in an expansion of use.

ATTACHMENT: Memorandum Re: Recommendations for Temporary State Street Promenade Configuration: 00 West Victoria Street, 1300 State Street, and Traffic Safety Barriers
PREPARED BY: Sarah Clark, Downtown Team Manager/nv
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
ATTACHMENT 1
Recommendations for Temporary State Street Promenade Configuration: 00 West Victoria Street, 1300 State Street, and Traffic Safety Barriers December 13, 2023

In November 2023, the 1200 block of State Street was opened to northbound vehicle traffic to accommodate passenger loading activities at the Granada Theatre. Currently, the northern-most block closed to vehicle traffic in both directions is the 1100 block of State Street (Figueroa to Anapamu Streets).

Operational Concerns
The Economic Recovery Extension and Transition Ordinance (ERETO) expires on December 31, 2023. As a result, the Santa Barbara City Council (City Council) has provided direction to maintain a promenade configuration on State Street as the State Street Master Planning Effort continues. The Fire Department, Police Department, and Public Works Department analyzed the temporary configurations and have identified the following operational concerns:

1. Sub-standard width fire lane on the 00 W. Block. The existing fire lane does not comply with the 20-feet width requirement as stated in the California Fire Code section 503.2.0. The current configuration does not provide adequate space for emergency vehicle maneuvering, passing, and outrigger deployment (see Attachments 1 and 2).

2. The one-way eastbound configuration of the 00 W. Block limits east/west emergency access routes (see Attachment 3).

3. The one-way northbound configuration of the 1300 block of State Street has created contra-flow bicycle movements. Coupled with the nose-in parking configuration and frequent commercial loading activities, the contra-flow bicycle movements are counter to driver expectancy, and conflicts between backing vehicles and cyclists have been observed.

4. Lack of traffic safety protection around parklets adjacent to moving traffic within the Promenade area.

RECOMMENDATIONS:

To address these concerns, we recommend the following:

1. Establish a minimum 20-foot-wide fire lane on the 00 West block of Victoria Street.

A compliant fire lane will provide for improved maneuverability for apparatus turning movements at intersections, proper space for outrigger deployment and staging, and space for emergency vehicles to pass one another if needed.

2. Re-establish two-way traffic on the 00 West block of Victoria Street. The space provided by the fire lane will be sufficient to re-establish two-way traffic. Two-way traffic will improve the ability of emergency responders to quickly move east/west through the Downtown. See Attachment 5.

3. Reconfigure the 1300 block of State Street. We recognize that the addition of nosein parking has benefited businesses. We recommend the configuration illustrated in Attachment 5. This configuration eliminates the conflicts between southbound cyclists and backing vehicles as observed, providing safer conditions for all road users, and provides an increased parking supply compared to pre-pandemic ATTACHMENT 1
Recommendations for Temporary State Street Promenade Configuration: 00 West Victoria Street, 1300 State Street, and Traffic Safety Barriers December 13, 2023

conditions (26 spaces versus the pre-pandemic 23). We also recommend eliminating the westbound to southbound left turn lane on Victoria Street (to turn onto southbound State Street) to increase loading-zone curb space.

4. Require businesses with parklets adjacent to moving traffic to surround their parklets with traffic safety barriers approved by the City Engineer.

Brian D'Amour, P.E., City Engineer
Ryan DiGuilio, Fire Battalion Chief Fire Marshal
Marylinda Arroyo, Assistant Chief of Police
1� b£L
ATTACHMENTS:

1. Current Emergency Vehicle Constraints On West Victoria Street

2. Ladder Truck With Extended Outriggers During Operations

3. Current Emergency Access Constraints With Delivery Trucks On West Victoria Street

4. Recommended 00 West Victoria Street Configuration

5. Recommended 1300 State Street Configuration
Cc: Kelly Gordon, Chief of Police
Chris Mailes, Fire Chief
Clifford M. Maurer, P.E., Public Works Department Director Sarah J. Knecht, City Attorney
ATTACHMENT 1
ATTACHMENT 1 – CURRENT EMERGENCY VEHICLE CONSTRAINTS ON WEST VICTORIA STREET ATTACHMENT 1
ATTACHMENT 2 – LADDER TRUCK WITH EXTENDED OUTRIGGERS DURING OPERATIONS ATTACHMENT 1
ATTACHMENT 3 – CURRENT EMERGENCY ACCESS CONSTRAINTS WITH DELIVERY

TRUCKS ON WEST VICTORIA STREET
ATTACHMENT 1

VICTORIA

CHAPALA

VICTORIA STATE
6 50'
6 STOP
STOP
STOP

PARKLET LOCATION

PARKLET LOCATION STOP
12'
4' 6' 6'
12'
4' 6' 6'

ENTER 'O NOT
3'

VICTORIA
STATE
NO
PARKING 6.56.5

N SHEET
SCALE
'ATE
'RA:N BY
CITY OF SANTA BARBARA TRAFFIC ENGINEERING STATE ST CLOS8RE LAYO8TS SERVICE RE48EST :ORK OR'ER
1 50' 122023'VB NA NA POT K2 BOLLAR' :HITE 2 GORILLA POST YELLO:  GORILLA POST B8SINESS S8PPLIE' TRAFFIC SAFETY BARRIER :ESTBO8N' TRAFFIC EASTBO8N' TRAFFIC FIRE LANE FIRE LANE ATTACHMENT 4 - RECOMMENDED 00 WEST VICTORIA STREET CONFIGURATION

LOA'ING
PARKINGLOA'ING
ATTACHMENT 1

ARLINGTON
SOLA STATE STATE 12'STOP STOP STOP STOP STOP

SOLA STATE STOP STATE KEEP LEFT NO PARKING NO PARKING
12' 11'
12' 11'
12' 11'

6.56.5 VICTORIA STATE STOPSTOP STOP STOP
12' 4' 6' 6' ENTER 'O NOT

VICTORIA STATE NO PARKING NO PARKING
12' 11'
12' 11'

6.56.5 N SHEET
ATTACHMENT 2 SCALE
'ATE
'RA:N BY
CITY OF SANTA BARBARA TRAFFIC ENGINEERING STATE ST PROMENA'E LAYO8TS SERVICE RE48EST :ORK OR'ER
1 2' 1222'VB NA NA POT K2 BOLLAR' YELLO:  GORILLA POST SEE BELO: LEFT

SEE ABOVE RIGHT
ATTACHMENT 5 - RECOMMENDED 1300 STATE STREET CONFIGURATION ANGLE' PARKING SPACES T:O:AY BIKE LANE ANGLE' PARKING SPACES T:O:AY BIKE LANE SO8THBO8N' TRAFFIC NORTHBO8N' TRAFFIC SO8THBO8N' TRAFFIC NORTHBO8N' TRAFFIC ATTACHMENT 1