The Harbor Commission recommended approval of the lease at their March 21, 2024 meeting.
A copy of the agreement is available for public review by the Waterfront Department.
Please contact Niko Lopez at [email protected] to request a copy.
ATTACHMENT: Site Plan
PREPARED BY: Cesar Barrios, Waterfront Business Manager SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: City Administrator's Office
Attachment
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: April 9, 2024
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Professional Services Agreement Extension with Foster & Foster Consulting Actuaries, Inc. for Actuarial Services [Agreement] RECOMMENDATION:
That Council authorize the Finance Director to approve and execute a professional services agreement extension with Foster & Foster Consulting Actuaries, Inc., to perform actuarial services in connection with the City’s Post-Retirement Health Benefits, Sick Leave Benefits, and Article XV and XVA Safety Retirement Plans covering Fiscal Years 2024 and 2025, in an amount of $43,000 for a new not to exceed amount of $128,000.
DISCUSSION:
Governmental accounting standards require that an actuarial valuation be performed every two years for any post-retirement benefits provided by the City to its employees.
The purpose of the valuations is to calculate the actuarially determined contributions and obligations associated with the post-retirement benefits as of the valuation date; and to determine their funded status. The actuarial information will be necessary for GASBS 75 and 73 including Notes, RSI, support exhibits and calculations, and journal entries.
GASBS 75 and 73 is used for financial and accounting purposes for matter such as pensions.
Valuations will be performed for the following items:
Post-Retirement Health Benefits: This includes two components: (1) Monthly distributions paid to City employees from their retirement date until age 65 to cover medical expenses. Employees must meet certain vesting requirements, including being employed with the City for at least ten or fifteen years, depending on the bargaining unit, or retire from the City with an industrial disability retirement; and (2) subsidized health insurance premiums.
Agenda Item No. 12
File Code No. 210.01
Council Agenda Report
Professional Services Agreement Extension with Foster & Foster Consulting Actuaries, Inc. for Actuarial Services [Agreement]
Amendment 2
Sick Leave Retirement Benefits: The City provides additional retirement benefits based on unused accumulated sick leave to eligible employees who retire from the City immediately upon termination of employment. Accumulated sick leave balances are converted to credited service that is used to provide additional retirement benefits.
Employees must have accrued at least 500 hours of unused sick leave, have a minimum of five years of service and retire at a minimum age of 50.
Safety Retirement Plan: The City provides a retirement plan for fire and police personnel hired between 1927 and 1965. The Safety Retirement Plan was established for those fire and police employees that retired from the City and who were disabled due to workrelated injuries. The plan has been closed to new employees since May 1965.
The results of the valuations will be included both in the financial statements and in required footnote disclosures within the City’s Annual Comprehensive Financial Report (ACFR) for Fiscal Years 2024 and 2025.
The City Council approved of the original agreement on June 28, 2016 with Bartel Associates, LLC (“Bartel”). Since then, Bartel was acquired by Foster & Foster Consulting Actuaries, Inc. (“Foster”), and the original agreement has been assigned to Foster. The First Amendment to this agreement was dated as of September 20, 2022, which increased the total compensation for all services for that period by $39,100 (June 30, 2021, valuations used for fiscal years 2021/22 and 2022/23). The fees associated with the proposed second agreement extension are comprised of a fixed annual fixed fee of $43,000 for two years, resulting in a new not-to-exceed amount of $128,000.
BUDGET/FINANCIAL INFORMATION:
The Fiscal Year 2024 Adopted Budget includes adequate expenditure appropriations to cover the $43,000 fees for these services.
A copy of the agreement extension is available for public review in the City Clerk’s Office.
PREPARED BY: Nathalie Lecolley, Controller
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: April 9, 2024
TO: Mayor and Councilmembers
FROM: Engineering Division, Public Works Department
SUBJECT: Pre-Bid Constructability Review Services for the Cater Water Treatment Plant Reservoir Resiliency Project [Agreement] RECOMMENDATION:
That Council authorize the Public Works Director to execute a City Professional Services contract with Mimiaga Engineering Group Inc., in the amount of $275,740 for pre-bid constructability review services for the Cater Water Treatment Plant Reservoir Resiliency Project and authorize the Public Works Director to authorize $27,574 for potential extra services, for a total expenditure authority of $303,314.
DISCUSSION:
Background
The existing Cater Water Treatment Plant (Cater) Clear Well was constructed in 1962.
The Clear Well is a reservoir that stores filtered water and allows for sufficient chlorine contact time for disinfection. The Clear Well also provides storage capacity to accommodate changing water system demands. The existing Clear Well is a buried concrete structure with a maximum operating storage volume of approximately five million gallons. The Cater Water Treatment Plant Reservoir Resiliency Project (Project) will install an approximately 2.5-million-gallon second reservoir as a chlorine contact basin adjacent to the existing Clear Well. The Project will address several operational concerns, including improving chlorine contact time for the disinfection process, providing the ability to bypass the existing Clear Well for maintenance purposes, and enhancing the system’s resiliency by improving storage and supply balancing capabilities. Additional work includes seismic retrofits to the existing Clear Well, modified stormwater design, and the design of a new solar power installation.
Current Status
In June 2021, Council approved Professional Services Agreement No. 26,976 with Carollo Engineers Inc., (Carollo) for the Project’s design. In October 2022, Council authorized staff to apply for a Drinking Water State Revolving Fund (SRF) installment agreement to fund the Project’s planning, design, and construction. Council determined Agenda Item No. 13
File Code No. 540.1
Council Agenda Report
Pre-Bid Constructability Review Services for the Cater Water Treatment Plant Reservoir Resiliency Project [Agreement]
April 9, 2024
the Project to be exempt under California Environmental Quality Act (CEQA) guidelines in February 2023. In June 2023, Council approved an increase to Professional Services Agreement No. 26,976 to accommodate changes identified in the preliminary design. The Project’s design is currently 90% complete. Pending the final funding agreement, the Project is anticipated to be publicly advertised in winter 2024 and construction is anticipated to begin in summer 2025, with an estimated duration of 30 months.
Pre-Bid Consultant Engineering Services
The contract recommended for approval in this report will provide pre-bid constructability review services, which will consist of a review of the Project’s plans, specifications, cost estimate, permits, reports, schedules, and work sequencing and phasing. All relevant information will be checked, corrected, and backchecked for accuracy and completeness.
A technical memorandum will be prepared with recommended phasing requirements and findings from the plans, specifications, and cost estimate review, which will be delivered prior to bidding on the Project and incorporated into the final construction documents.
This contract will also support the Project through the bidding and award process.
Mimiaga Engineering Group Inc., (MEG) is experienced in this type of work and was selected through a competitive Request For Proposals (RFP) process that received proposals from three qualified firms. The RFP included the full scope of work for a consultant to provide pre-bid constructability review services, support during bidding and award, and construction management and inspection services during the Project’s construction. This contract includes only the scope of work to provide pre-bid services and support during bidding and award. A separate contract for construction management and inspection services will be recommended for approval concurrent with the construction contract award.
Staff recommends that Council authorize the Public Works Director to execute a contract with MEG in the amount of $275,740 for pre-bid constructability review and authorize the Public Works Director to authorize $27,574 for potential extra services, for a total expenditure authority of $303,314.
A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].
BUDGET/FINANCIAL INFORMATION:
There are sufficient expenditure appropriations in the Water Capital Fund in Fiscal Year 2024 to cover the recommended contract for MEG’s pre-bid Constructability Review for the Project. A SRF loan is anticipated to fund the Project’s construction and to reimburse the City for planning and design costs.
The following summarizes all estimated total Project costs:
Council Agenda Report
Pre-Bid Constructability Review Services for the Cater Water Treatment Plant Reservoir Resiliency Project [Agreement]
April 9, 2024
ESTIMATED TOTAL PROJECT COST
Design (Carollo) $1,338,506
Other Design Costs (City staff) $268,000
Design Subtotal $1,606,506
Pre-bid Constructability Review (MEG) $303,314
Estimated Construction Contract with Change Order Allowance $35,750,000 Estimated Construction Management/Inspection (Contract) $3,300,000 Estimated Construction Administration (City staff) $220,000 Estimated Other Construction Costs (testing, etc.) $280,000 Construction Subtotal $39,853,314
TOTAL PROJECT COST $41,459,820
SUSTAINABILITY IMPACT:
Cater is a critical facility for maintaining regional drinking water quality and supply. This Project will increase the reliability of the treatment process, and the supporting infrastructure provides the opportunity to develop solar power installation at this site, helping to reduce energy costs while meeting the City’s 100% renewable electricity goal.
ENVIRONMENTAL REVIEW:
On February 14, 2023, Council determined that the Project is exempt under CEQA Guidelines §15301 Existing Facilities (b) and (d) and §15302 Replacement or Reconstruction (c). The Notice of Exemption was filed with the County Clerk, and State Clearinghouse (SCH# 2023020382) on February 15, 2023.
WATER COMMISSION RECOMMENDATION:
This item was presented to the Water Commission at its meeting on March 21, 2024, and the Commission voted 3-0-2 in support of staff’s recommendations.
PREPARED BY: Brian D’Amour, P.E., City Engineer/PM/rl
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: April 9, 2024
TO: Mayor and Councilmembers
FROM: Administrative Division, Waterfront Department
SUBJECT: Santa Barbara Cruise Ship Program Update
RECOMMENDATION: That Council:
A. Approve the proposed Cruise Ship Program improvements recommended by both Waterfront staff and Harbor Commission;
B. Provide input and direction on establishing a cap of twenty cruise ship visits per year versus relying on limiting available cruise ship visit dates with no annual cap; and C. Provide additional input and recommendations for the Cruise Ship Program as necessary.
EXECUTIVE SUMMARY:
The Waterfront Department has had a successful Cruise Ship Program for over 20 years.
Over the past 24 months, Waterfront staff, the Harbor Commission, and the Cruise Ship Workgroup have held numerous public meetings with the goal of evaluating the benefits and impacts of the Cruise Ship Program to make improvements to the program. Various programmatic recommendations were provided by Waterfront staff, Santa Barbara Channelkeeper, Channel Islands National Marine Sanctuary Advisory Council, and the Cruise Ship Workgroup. The Harbor Commission reviewed the list of proposed improvements at the February 15, 2024, Harbor Commission meeting and forwarded their recommendations to City Council.
BACKGROUND:
The Waterfront Department established a Cruise Ship Program and welcomed its first visiting ships in 2002. Since that time, Santa Barbara has hosted numerous ships, typically seeing between 15 and 30 visits per year. With few exceptions, cruise ship visits are limited to non-peak tourist months of September through May.
Agenda Item No. 15
File Code No. 570.03
Council Agenda Report
Santa Barbara Cruise Ship Program Update
April 9, 2024
Santa Barbara is a “tender” port, which means the visiting ships anchor roughly 1 mile offshore and passengers are transported ashore by smaller tender vessels. Once ashore, passengers have the option of exploring independently, utilizing Waterfront-provided shuttles, or joining various pre-arranged excursions. Ship sizes vary from 250 to 3,500 passengers but, typically, not all guests come ashore.
Numerous entities provide shoreside services in support of visiting passengers including Waterfront and Police Department staff, Chamber of Commerce and Downtown Organization volunteers, and Santa Barbara Landing staff. These entities have worked well together for many years to provide an efficient, effective, and welcoming experience for visiting cruise ship passengers.
The Waterfront Department collects a fee of $15/passenger (raised from $10/passenger on July 1, 2023) from visiting cruise ships. This fee is based on manifested passengers regardless of whether they come ashore. This amounts to roughly $500,000 in direct annual revenue for the Waterfront Department. Additionally, Santa Barbara Landing, which is a Waterfront Department tenant, acts as the Coast Guard approved site operator.
As such, they provide docking space, site security, and coordination with visiting passengers in compliance with federal law. Santa Barbara Landing receives roughly $12,500 per ship to provide these services. In addition to direct fees received by the Waterfront Department and Santa Barbara Landing, Visit Santa Barbara estimates a positive economic impact from visiting cruise ships of roughly $3M to $5M annually to local businesses.
After a two-year pause due to COVID, the Waterfront Department resumed the Cruise Ship Program on March 16, 2022. Prior to resuming visits, the topic of cruise ships was brought in front of Harbor Commission for discussion on January 20, 2022, and City Council on March 8, 2022. At the time, the Cruise Ship Program was favored by the majority of Council and Harbor Commission, although there was some interest expressed in further evaluating the impacts, benefits, and regulations that govern cruise ships.
As a result, the Harbor Commission formed the Cruise Ship Workgroup on April 22, 2022, to further review the program, its impacts, and benefits/detriments. The Cruise Ship Workgroup held multiple public meetings over the last two years covering a broad range of topics including:
- Overview of the Cruise Ship Program
- Main community concerns
- Discussion on air emissions and ocean discharge with SB Channelkeeper and Channel Islands National Marine Sanctuary Advisory Council - Discussion on regulatory practices
- Discussion on economic benefits with Visit Santa Barbara and the Chamber of Commerce
- Presentation from the Air Pollution Control District (APCD) - Presentation from Cruise Lines International Association (CLIA) Council Agenda Report
Santa Barbara Cruise Ship Program Update
April 9, 2024
- Presentation from the United States Coast Guard
- Discussion on proposed improvements to the Cruise Ship Program The goal of the Cruise Ship Workgroup was to gather public input, disseminate information, better understand cruise ship operations, better understand cruise ship impacts and benefits, and report back to the full Harbor Commission.
DISCUSSION:
Over the past two years, the Cruise Ship Workgroup and Waterfront staff have held informative, well-attended, public meetings aimed at gathering input on the impacts, benefits, regulations, and practices of cruise ships visiting Santa Barbara. The intent of this process was to gather information to help inform potential improvements to the Santa Barbara Cruise Ship Program.
Most recently, at the February 15, 2024 meeting, the Harbor Commission received input from Waterfront staff and the Cruise Ship Workgroup and made recommendations on improvements to the Cruise Ship Program going forward. Harbor Commission reviewed a list of 20 program improvements (Attachment 1). Many of the recommended improvements were largely informed by the Channel Islands National Marine Sanctuary Advisory Council (Attachment 2) and Santa Barbara Channelkeeper (Attachment 3), as well as input from the public during the Cruise Ship Workgroup process. The Cruise Ship Workgroup also put forth a set of recommendations to be considered by staff and the full Harbor Commission (Attachment 4).
Waterfront staff and Harbor Commission were aligned on 15 of the 20 recommended improvements, as shown in Attachment 1 and listed below.
The following recommendations were unanimously supported by Waterfront staff and the Harbor Commission:
1. Request cruise ships calling on Santa Barbara be equipped with Advanced Wastewater Treatment Systems (AWTS) by 2025
2. Continue the local requirement of no discharges of any kind within 12 nautical miles of Santa Barbara
3. Request cruise ships calling on Santa Barbara to reduce speeds, when feasible, to 10 knots or less within the Santa Barbara Channel Vessel Speed Reduction (VSR) Zone between May 1 and December 15
4. Continue to prohibit cruise ship visitation from Memorial Day through Labor Day and prohibit cruise ship visits on weekends year-round
5. Encourage cruise lines to further involve local businesses during visits
6. Encourage cruise lines to explore the feasibility of supplying local seafood to visiting ships
7. Encourage cruise lines to engage with educational institutions to enhance career development in the maritime sector
Council Agenda Report
Santa Barbara Cruise Ship Program Update
April 9, 2024
8. Continue charging the increased per passenger fees from $10 to $15 for FY24 and FY25
9. Continue charging the implemented 500 passenger minimum fee of $7,500 for FY24 and FY25
10.Continue charging the implemented cancellation fee of $2,500 for ships that cancel 15-30 days prior to call, and $6,500 for ships that cancel 14 days or less prior to call for FY24 and FY25
11.Require visiting cruise ships to receive written approval from City Administrator or designated representative
12.Establish a publicly available cruise ship best practices informational resource for Santa Barbara which includes an annual report on cruise ship statistics, ship technologies, and incidents
13.Conduct periodic reviews of the Cruise Ship Program to ensure it continues to align with Council priorities and City's goals
14.Evaluate the need for licensed ship pilots to assist with cruise ships in Santa Barbara
15.Request cruise ships calling on Santa Barbara to consider at-anchor emissions control systems when such technologies become commercially feasible The following recommendations were not supported by Waterfront staff:
16.Establish a limit of twenty (20) annual cruise ship visits
17.Prioritize cruise ships without scrubber technology or with closed loop scrubber technology
18.Prioritize cruise ships with shore power connectivity
19.Prioritize cruise lines with exemplary environmental compliance records
20.Maintain the Cruise Ship Workgroup
Staff do not support an artificial cap on visits as there are currently no operational limitations with the program at this time. Additionally, cruise ships typically book 1 to 3 years in advance and often cancel or reschedule dates. This would make administering a hard cap on visits difficult and cause impacts making a specific target difficult to attain.
Ships also vary in passenger count from 250 to 3500. Limiting the number of ships could make revenues volatile as fees are charged per passenger, not per ship. Additionally, Santa Barbara already has strict limitations on scheduling with no visits during the summer months, leaving limited days, which has resulted in a natural demand of 15 to 30 ships per year. In addition to the existing no summer visits policy, staff and the Harbor Commission are proposing prohibiting weekend visits. This would further constrain the available dates and naturally limit ship visits. By using date ranges, as opposed to a hard cap, to limit the number of ships it allows the industry, and staff, to have some flexibility when arranging schedules.
Staff do not support prioritizing ships without scrubber technology or with shore power connectivity, as there are already strict regulatory agencies, such as the California Air Resource Board and International Maritime Organization, governing when these systems Council Agenda Report
Santa Barbara Cruise Ship Program Update
April 9, 2024
can and cannot be used in ocean-going vessels. Staff’s preference is to lean on these agencies to evaluate and regulate the industry in a uniform manner.
Staff do not support prioritizing cruise lines with exemplary environmental compliance records as this is very subjective nor is the waterfront Department equipped to be a regulatory agency as to this issue, hence, there could be legal ramifications associated with approving and denying ships based on subjective, unsubstantiated data from third party sources. It is also important to note that the City does not have the legal authority to prevent anchoring off Santa Barbara waters.
Staff also do not support maintaining the Cruise Ship Workgroup as it could be a violation of the Brown Act. Ad-hoc workgroups are intended to have a defined purpose that is short in duration and does not continue in perpetuity. Staff recommends regularly reviewing the Cruise Ship Program at the full Harbor Commission level to provide guidance on future actions.
CONCLUSION:
Waterfront Staff and the Harbor Commission have thoroughly reviewed the Cruise Ship Program over the last two years.
Based on direction received from City Council, Waterfront staff will work to implement proposed program improvements. It is the intent of staff to conduct a periodic review of the Santa Barbara Cruise Ship Program with Harbor Commission to assess the compatibility with the City's goals and evolving industry sustainability best practices.
ATTACHMENTS: 1. Recommended Improvements to the SB Cruise Ship Program
2. 11/18/2022, Channel Islands National Marine Sanctuary Advisory Council Recommendation Letter
3. 06/09/2023, Santa Barbara Channelkeeper Recommendation Letter
4. 02/09/2024, Cruise Ship Workgroup Recommendation Letter PREPARED BY: Mike Wiltshire, Waterfront Director
SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: City Administrator's Office
Recommendations Impacts/Notes Staff
Recommended
Harbor Commission
Recommended
1 Wastewater Treatment Request cruise ships calling on Santa Barbara be equipped with Advanced Wastewater Treatment Systems (AWTS) by 2025
Restricts some cruise lines. May result in fewer visiting cruise ships. Industry is moving in this direction YES YES
2 Wastewater Discharge Continue the local requirement of no discharges of any kind within 12 nautical miles of Santa Barbara Continue compliance. Existing requirement YES YES 3 Vessel Speed
Request cruise ships calling on Santa Barbara to reduce speeds, when feasible, to 10 knots or less within the Santa Barbara Channel Vessel Speed Reduction (VSR) Zone between May 1 and December 15
Existing Assembly Bill AB953 in process. Requires Ocean Protection Council (OPC) to administer vessel speed program.
Defer to this or other programs when they become available
YES YES
4 Scheduling/Limiting Visits Continue to prohibit cruise ship visitation from Memorial Day through Labor Day. Prohibit cruise ship visits on weekends year round Formalizes a current practice YES YES 5 Business/Community Encourage cruise lines to further involve local businesses during visits Has already been occurring. Can continue efforts YES YES 6 Business/Community Encourage cruise lines to explore the feasibility of supplying local seafood to visiting ships
Being investigated. Tough to establish a program with so few cruise ship visits YES YES
7 Business/Community Encourage cruise lines to engage with educational institutions to enhance career development in the maritime sector Being investigated. Can continue efforts YES YES 8 Fees Continue charging the increased per passenger fees from $10 to $15 for FY24 and FY25 Implemented as of July 1, 2023 YES YES
9 Fees Continue charging the implemented 500 passenger minimum fee of $7,500 for FY24 and FY25 Implemented as of July 1, 2023 YES YES 10 Fees
Continue charging the implemented cancellation fee of $2,500 for ships that cancel 15-30 days prior to call, and $6,500 for ships that cancel 14 days or less prior to call for FY24 and FY25
Implemented as of July 1, 2023 YES YES
11 Approval Process Require visiting cruise ships to receive written approval from City Administrator or designated representative
Formalizes a current practice. Visiting cruise ships receive written confirmation from Waterfront YES YES
12 Policy/Documentation
Establish a publicly available cruise ship best practices informational resource for Santa Barbara which includes an annual report on cruise ship statistics, ship technologies, and incidents
Staff can administer. Slight cost to staff due to staff time requirements. Can report Cruise Ship Program details to Harbor Commission
YES YES
13 Program Review Conduct periodic reviews of the Cruise Ship Program to ensure it continues to align with Council priorities and City's goals
Can review at Harbor Commission and Council level
periodically YES YES
14 Evaluate Need for Pilots Evaluate the need for licensed ship pilots to assist with cruise ships in Santa Barbara
Evaluated during workgroup process. Very difficult to
implement with little benefit. Pilot transportation issues YES YES 15 Technology - At Anchor
Request cruise ships calling on Santa Barbara to consider at-anchor emissions control systems when such technologies become commercially feasible
Difficult to prioritize. Subjective technology that doesn't specifically exist. Revisit and implement when specific technologies arise
YES YES
16 Scheduling Limit Establish a limit of twenty (20) annual cruise ship visits Will result in volatile revenue as cruise ship sizes vary.
Removes scheduling flexibility. Impacts cruise line itineraries.
Already limitations in place on available booking dates.
NO COUNCIL
INPUT
17 Technology - Scrubbers Prioritize cruise ships without scrubber technology or with closed loop scrubber technology
Difficult to prioritize. Defer to regulatory agencies that govern when various technologies can and can't be used NO YES
18 Technology - Plug-In ElectricPrioritize cruise ships with shore power connectivity Difficult to prioritize. Defer to regulatory agencies that govern when various technologies can and can't be used NO YES
19 Environmental Compliance Prioritize cruise lines with exemplary environmental compliance records Difficult to administer. Subjective. Significant staff time to evaluate and substantiate data. May be legal implications with wrongfully denying cruise ships based on unsubstantiated data NO YES
20 Cruise Ship Working Group Maintain the Cruise Ship Workgroup Defies the definition of a workgroup. Possible Brown Act issues. Needs a specific task and conclusion. Suggest future cruise ship discussion occuring at Harbor Commission level and reforming a workgroup as needed
NO YES
Recommended Improvements to the Cruise Ship Program
Attachment 1
November 18, 2022
John Stedman
Chair, City of Santa Barbara Harbor Commission
735 Anacapa Street
Santa Barbara, CA 93101
Kristen Sneddon
Chair, City of Santa Barbara Sustainability Council Committee 735 Anacapa Street
Santa Barbara, CA 93101
Re: City of Santa Barbara cruise ship visits and protecting Channel Islands National Marine Sanctuary
Dear Chair Stedman and Chair Sneddon:
I write to you on behalf of the Channel Islands National Marine Sanctuary (CINMS) Advisory Council to provide our perspectives as the City of Santa Barbara evaluates its cruise ship program. 1 The Sanctuary Advisory Council brings together community members and representatives from government agencies to advise the National Oceanic and Atmospheric Administration’s (NOAA’s) Office of National Marine Sanctuaries on the protection, management, and compatible use of sanctuary waters and associated resources. We represent the general public, tourism, business, recreational fishing, commercial fishing, non-consumptive recreation, education, research, and conservation community interests, Chumash interests, as well as ten local, State, and Federal government agencies.
1 The advisory council is an advisory body to the sanctuary superintendent. The opinions and findings of this letter do not necessarily reflect the position of the National Oceanic and Atmospheric Administration.
CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
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Attachment 2
The CINMS is one of 15 national marine sanctuaries in U.S. waters. NOAA’s National Marine Sanctuary System works to achieve many program-wide goals related to conservation, education, and human-use within sanctuaries. Importantly, among these goals is the commitment to “maintain the natural biological communities in sanctuaries and to protect and, where appropriate, restore and enhance natural habitats, populations, and ecological processes.”2 Human use of sanctuaries is also facilitated through the Sanctuary System to the extent such uses are compatible with the primary mandate of resource protection.3
Concerns with Santa Barbara’s Cruise Ship Program
The Advisory Council recognizes that the cruise ship industry is an important economic driver to segments of many coastal communities. We also recognize several environmental impacts and risks associated with cruise ships that may harm sanctuary resources. Accordingly, the CINMS prohibits all discharges from cruise ships within its boundary (15 CFR 922.72(3)(i)) and restricts cruise ships and other large vessels from navigating closer than one (1) nautical mile from island shores (15 CFR 922.72(6).4
While sanctuary regulations may help protect the CINMS from the most direct impacts of cruise ships, this Advisory Council recognizes that the impacts of pollution within our oceans and atmosphere transcend jurisdictional boundaries in the following ways:
● Sewage and greywater waste discharged into the Santa Barbara Channel may be transported by currents into the CINMS.
● Many wildlife species that the CINMS strives to protect (including migratory whales and other marine mammals) regularly travel across the sanctuary boundary (as well across state and national boundaries) where cruise ships travel and harmful discharge of pollution (including acidic scrubber waste) from cruise ships occurs. ● Large vessel traffic throughout the Santa Barbara Channel increases the risk of ship strikes on whales. According to Whale Safe,5 a program initiated by the Benioff Ocean Initiative (Marine Science Institute, University of California, Santa Barbara) to track cooperation with NOAA’s Voluntary Vessel Speed Reduction (VSR) Zone6 and the Protecting Blue Whales and Blue Skies VSR Program,7 many cruise ships are not consistently cooperating with the 7 https://www.bluewhalesblueskies.org/
6 https://channelislands.noaa.gov/manage/resource/ship-strikes.html 5 https://whalesafe.com
4 https://channelislands.noaa.gov/manage/regulations.html 3 Id.
2 https://nmschannelislands.blob.core.windows.net/channelislands-prod/media/archive/management/manplan/cin ms_fmp_2009.pdf
CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
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voluntary program. The Southern California Region VSR Zone extends from Pt. Arguello to south of Dana Point.
● Air emissions from cruise ships, including greenhouse gas emissions, may contribute disproportionately to local air quality exceedances and to climate change, compared to other marine and land based modes of transportation.8 These emissions threaten the integrity of CINMS resources.9
Climate change impacts to the CINMS
The CINMS Advisory Council supports NOAA’s efforts to increase public understanding and awareness of the impacts of climate change, which are significant and potentially detrimental to both the Channel Islands ecosystem and commercial fisheries of economic value to Santa Barbara. The following impacts of climate change, of which cruise ships are a contributor, are cause for concerns to CINMS resources:
● Ocean acidification threatens the survival of deep water coral populations in the CINMS.10,11
● Warming ocean temperatures can reduce kelp habitat12, which is critical to the CINMS marine ecosystem.
● Lower oxygen levels caused by increasing ocean temperatures could decrease rockfish habitat in the sanctuary by 50%13 and reduce breeding habitat for market squid.14 ● Climate change is altering the frequency and intensity of harmful algal blooms (HABs), such as the bloom that we experienced this summer in the Santa Barbara Channel that resulted in domoic acid poisoning of hundreds of sea lions and other animals.15 15 Southern California Coastal Ocean Observing System (2022) Summer 2022 Newsletter. https://sccoos.org/wp-content/uploads/2022/09/SCCOOS-Summer-2022-Newsletter.pdf 14Navarro et al. (2018) Development of Embryonic Market Squid, Doryteuthis opalescens, under Chronic Exposure to Low Environmental pH and [O2]. PLoS One
13 McClatchie et al. (2010) Oxygen in the Southern California Bight: Multidecadal trends and implications for demersal fisheries. Geophys. Res. Lett.
12 Cavanaugh et al. (2019) Spatial variability in the resistance and resilience of giant kelp in Southern and Baja California to a multiyear heatwave. Front. Mar. Sci
11 Wickes (2014) The effect of acidified water on the cold-water coral, Lophelia pertusa: Distribution in the Southern California Bight and analysis of skeletal dissolution. PQDT Open 10 Gomez et al. (2018) Growth and feeding of deep-sea coral Lophelia pertusa from the California margin under simulated ocean acidification conditions. PeerJ
9 Of ice of National Marine Sanctuaries, National Oceanic and Atmospheric Administration. (2020) Climate Change Impacts, Channel Islands National Marine Sanctuary. https://nmssanctuaries.blob.core.windows.net/sanctuaries-prod/media/docs/20200820-climate-change-impactschannel-islands-national-marine-sanctuary.pdf 8 https://www.sciencedirect.com/science/article/pii/S0025326X21010134#bb0330 CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
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● Increased and more severe occurrences of HABs have recently resulted in closures of Santa Barbara and CINMS commercial fisheries such as mussels, lobster, and rock crab.16,17
Advisory Council Recommendations
The CINMS Advisory Council asks that the City of Santa Barbara be mindful that increased cruise ship traffic through the Santa Barbara Channel logically results in an increased risk of environmental impact to CINMS resources. We recommend that the City carefully consider approaches that could both reduce the likelihood of potential impacts to CINMS resources and potentially incentivize advancement of the cruise industry towards less impactful practices and technologies. Such approaches may include, but not be limited to, adopting policies such as:
● Cap and/or reduce the existing number of annual visits; ● Limit visitation to ships with advanced sewage treatment systems installed, and prohibit ships with Tier 2 marine sanitation devices;
● Limit visitation to ships with best technologies (i.e. Tier 3 engines, plug-in technology, closed-loop scrubber technologies incorporating shore-side hazardous waste disposal, etc.) to minimize marine waste disposal as well as greenhouse gas and other criteria air pollutant emissions;
● Restrict visitation of ships with poor records of environmental compliance; ● Adopt additional limitations to balance the City’s economic interests with environmental considerations relevant to the CINMS;
● Modify the City’s voluntary 12-mile VSR request to require cooperation within the entire vicinity of the VSR Zone to reduce nitrogen dioxide (NOx) emissions and help bring Santa Barbara County into compliance with California Ambient Air Quality Standards; ● Phase in the required use of at-anchor emissions control systems when such technologies become feasible; and
● Periodic review of the City’s cruise ship policies to update measures based on evolving industry sustainability best practices.
The CINMS Advisory Council appreciates the City’s willingness to create forums to receive public input regarding the cruise ship program. As a multi-stakeholder body, we offer our Council’s support as the City explores the future direction of the cruise ship program. We also invite the City to engage 17 Moore et al (2019) An index of fisheries closures due to harmful algal blooms and a framework for identifying vulnerable fishing communities on the U.S. West Coast
16 Ocean Science Trust (2016) Frequently Asked Questions, Harmful Algal and California Fisheries, Developed in Response to the 2015-16 Domoic Acid Event
CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
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with CINMS staff, who offer significant expertise as partners working to protect the sanctuary and Santa Barbara Channel.
Sincerely,
Kristen Hislop, Chair
CINMS Advisory Council
cc: William J. Douros, Regional Director, West Coast Region, NOAA Office of National Marine Sanctuaries
Chris Mobley, Superintendent, NOAA Channel Islands National Marine Sanctuary Enclosure: Sanctuary Advisory Council voting record on the motion to approve this letter.
CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
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ENCLOSURE: Voting Results: Advisory Council letter on City of Santa Barbara cruise ship visits and protecting Channel Islands National Marine Sanctuary, November 18, 2022.
Name Advisory Council Seat Vote on letter
Michael Cohen Tourism member Yes
Morgan Coffey Tourism alternate absent
Ben Pitterle Non-Consumptive Recreation member Yes
Anthony Knight, Ph.D. Non-Consumptive Recreation alternate n/a Giles Pettifor Business member absent
Paul Amaral Business alternate absent
Kristen Hislop Conservation member Yes
Samantha Macks Franz Conservation alternate absent
Kim Selkoe, Ph.D. Commercial Fishing member absent
Timothy Athens Commercial Fishing alternate absent
Capt. David Bacon Recreational Fishing member Yes
Merit McCrea Recreational Fishing alternate absent
Cliff Rodrigues Education member Yes
Andrea Mills Education alternate absent
Phyllis Grifman Research member Yes
Robert Miller, Ph.D. Research alternate absent
Douglas Williams,
Ph.D. Public-At-Large member absent
Mary Byrd Public At-Large alternate absent
Stuart Kasdin, Ph.D. Public-At-Large member Yes
Amanda Allen Public At-Large alternate absent
Eva Pagaling Chumash Community member absent
Tano Cabugos Chumash Community alternate absent
Daniel Studt National Marine Fisheries Service member Abstain <vacant> National Marine Fisheries Service alternate -- Ken Convery National Park Service member absent
<vacant> National Park Service alternate --
CDR Ariel Berrios U.S. Coast Guard member absent
LT Lelea Lingo U.S. Coast Guard alternate absent
Donna Schroeder Bureau of Ocean Energy Management member Abstain Jeremy Potter Bureau of Ocean Energy Management alternate absent Adam Melerski Dept. of Defense member absent
Stephen Duboyce Dept. of Defense alternate Yes
Carlos Mireles California Dept. of Fish & Wildlife member Abstain John Ugoretz California Dept. of Fish & Wildlife alternate absent Jenn Eckerle California Natural Resources Agency member absent Lindsay Bonito California Natural Resources Agency alternate absent CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
Cassidy Teufel California Coastal Commission member absent Jacqueline Phelps California Coastal Commission alternate absent Erin Briggs County of Santa Barbara member Yes
David Villalobos County of Santa Barbara alternate absent Jed Chernabaeff County of Ventura member Yes
<vacant> County of Ventura alternate --
Vote results:
10 yes, 0 no, 3 abstain
Seats absent for vote: 8
CINMS Advisory Council • UCSB Ocean Science Education Bldg • MC-6155 • Santa Barbara, California 93106
https://channelislands.noaa.gov/sac/welcome.html
www.sbck.org
714 Bond Avenue
Santa Barbara, CA 93103
805.563.3377
June 9, 2023
City of Santa Barbara Harbor Commission
132-A Harbor Way
Santa Barbara, CA 93109
Re: Recommendations for the Future of City of Santa Barbara’s Cruise Ship Program Dear Commissioners:
I submit this letter in advance of the June 15, 2023, City of Santa Barbara’s Harbor Commission (Commission) regular meeting. I ask that the letter be included in the public record for any Agenda Item on the Cruise Ship Subcommittee (Subcommittee) activities and distributed to Commissioners prior to the meeting.
Santa Barbara Channelkeeper is a local non-profit organization that works to protect and restore the Santa Barbara Channel and its watersheds. Channelkeeper was founded in 1999 as a program of the Environmental Defense Center. In 2001, we became an independent, 501(c)(3) organization. We have a long-standing history of working for clean water and healthy habitats in the Santa Barbara region through our education, community engagement, monitoring, and advocacy programs.
The Santa Barbara Channel is one of the most biologically productive ecosystems on Earth.
Channelkeeper is concerned about the risks that cruise ship traffic through the Santa Barbara Channel has on the magnificent biodiversity and environmental sensitivity of the area.
We are also concerned about the public health and environmental impacts of air emissions of cruise ships transiting to and from, and anchoring off the coast, as well as wastewater discharges from the cruise ships. In December, an engineer with the Santa Barbara County Air Pollution Control District reported to the Subcommittee that a large cruise ship with 3,575 passengers emits 2.2 times more greenhouse gas emissions as the equivalent of more than 1,788 passenger car roundtrips between Los Angeles and Santa Barbara. He also reported that this sized cruise ship emits approximately 150 times more nitrogen oxide (NOx) and sulfur oxide (SOx) pollution than these car trips.
Attachment 3
www.sbck.org
State law prohibits discharges of sewage, greywater, and bilge water within three miles of shore.
The U.S. Clean Water Act allows cruise ships to discharge treated sewage and greywater between three and twelve miles from shore. Beyond twelve miles, cruise ships can discharge untreated sewage, greywater, bilge water, and food waste. The monitoring and reporting requirements under the Clean Water Act for cruise ship discharges, especially sewage, are not robust.
The City of Santa Barbara has taken positive steps to address localized environmental impacts of its cruise ship program by securing voluntary commitments with the cruise ship captains aimed at preventing use of the ships’ incinerators and the discharge of sewage or greywater within twelve miles of shore. It is a challenge to monitor for compliance. The City relies largely on good faith that ships comply with these commitments.
Last year, Channelkeeper recommended that the Commission establish a subcommittee to involve the public in a review of the City’s cruise ship program. We were concerned about the more than 30 cruise ships scheduled to visit Santa Barbara in 2022, which would set an all-time record for cruise ship visits in one year. Approximately 200 ships have visited Santa Barbara since the program’s inception in 2002. So, approximately 13 percent (30 of 230) of the visits in the 20-year history of the program were scheduled to occur in one year. We were concerned that the 2022 schedule was a sign of the future. We also thought it was a good time for the City to review how the cruise ship program aligns with other environmental and community goals, such as the commitment to be carbon neutral by 2035.
We applaud the Commission, members of the Subcommittee, and Waterfront staff for undertaking a review of the City’s cruise ship program.
For the past several months, Channelkeeper has attended and regularly provided comments to the Subcommittee as it reviewed the City’s cruise ship program. There has been a strong, enthusiastic community turn-out and participation at these meetings. The overwhelming majority of those speaking during public comment periods are calling for changes.
At the December Subcommittee meeting, the chair of the Channel Islands National Marine Sanctuary (CINMS) Advisory Council submitted for the public record a letter (CINMS Advisory Council letter) to John Stedman, City of Santa Barbara Harbor Commission Chair and Kristen Sneddon, Chair of the City of Santa Barbara Sustainability Council Committee with several recommendations. I have included the CINMS Advisory Council letter as Attachment 1 to this letter so that it can also be part of this meeting’s public record.
Last month, Waterfront Staff presented their recommendations to the Subcommittee. Some of the newly recommended changes, such as not scheduling visits between Memorial Day and Labor Day, during weekends, or on consecutive days, are steps in the right direction. A few Staff recommendations add further requests of cruise ships and lines.
We believe more can and should be included in an updated cruise ship program. We believe there should be a hard cap on the annual number of cruise ship calls. We believe that the ships visiting Santa Barbara should be demonstrating a commitment to install and use advanced technologies that reduce their impacts to marine resources and public health. We support maintaining a Cruise Ship www.sbck.org
Subcommittee to provide the public with opportunities for continued engagement in the program.
As the Commission and City continue to review the cruise ship program, we believe the City should establish more requirements for cruise ships/lines who make calls to Santa Barbara.
Channelkeeper recommends the City adopt the following improvements to its cruise ship program.
We recommend that these improvements be in place in time to cover cruise ships visiting Santa Barbara for the 2025 spring season.
• Reduce and cap the number of cruise ship calls to Santa Barbara to no more than 18 annually. Channelkeeper recommends a hard cap on the number of cruise ships making calls to Santa Barbara Harbor. Our recommended cap is the average number of cruise ships that visited Santa Barbara between 2010 and 2019 (and similar to the number of visits in 2018 and 2019). According to the Waterfront Department’s staff presentation at the September 22, 2022, Subcommittee meeting, 181 cruise ships visited Santa Barbara during these ten years, for an average of 18 calls per year (see slide). • Require that visiting ships have Advanced Wastewater Treatment Systems (AWTS) installed. Over the past 20 years, cruise lines have improved their wastewater practices by installing advanced wastewater treatment systems on new ships. Monitoring data from the State of Alaska shows that these systems improve the condition of the effluent as compared to traditional Marine Sanitation Device (MSD) technology, which is required to be used by the International Maritime Organization (IMO) and the U.S. Environmental Protection Agency. According to the Cruise Line Industry Association, 78 percent of the cruise ship www.sbck.org
fleet of Association members has AWTS installed and 100 percent of the new ships on order are set to have AWTS.
Most ships in the cruise lines that visit Santa Barbara are already equipped with AWTS.
Thus, a requirement that cruise ships must have AWTS installed would not significantly shrink the number of ships visiting Santa Barbara. It would, however, prevent ships that still use outdated technologies from visiting Santa Barbara, and help to reduce the risks associated with wastewater discharges in the Channel.
• Prohibit cruise ships with scrubbers from visiting Santa Barbara. Cruise ships have traditionally burned heavy fuel oil or bunker fuel, which are some of the dirtiest fuels and result in significant emissions of sulfur oxide (SOx) air pollution. In 2020, the IMO announced standards to lower sulfur emissions throughout the marine shipping industry, including cruise ships. California has established even stricter sulfur emissions standards, and ships are required to comply by using cleaner burning fuels. Outside California, however, the same ships that visit Santa Barbara are legally allowed to comply with IMO standards by using “equivalent” compliance measures instead of shifting to cleaner fuels.
The cheapest way for cruise ships to do so is to install devices known as scrubbers in their exhaust stacks. The use of scrubbers has increased in the shipping industry over the last several years.
Scrubbers use seawater to spray down exhaust in smokestacks, resulting in the accumulation of highly acidic and toxic scrubber sludge containing heavy metals and polycyclic aromatic hydrocarbons (PAHs) that accumulate in the ocean food web. U.S., Canadian, and IMO regulations allow for ships to dump scrubber sludge directly to the ocean. Studies have demonstrated that scrubber discharge has damaging effects on marine ecosystems.
Santa Barbara should lead by example and avoid doing business with ships that pollute our oceans and marine ecosystems with toxic scrubber waste, thereby creating incentives for the cruise industry to commit to the use of cleaner burning fuels and investments in hybrid technologies.
• Expand the voluntary Vessel Speed Reduction (VSR) Zone, urge ships to reduce speed to 10 knots or less when in this zone, and track how cruise ships adhere to these voluntary speed reduction measures. The National Oceanic Atmospheric Administration, working with the U.S. Coast Guard and U.S. Environmental Protection Agency, issues requests for large vessels transiting off southern California, Monterey, and San Francisco to reduce speeds to 10 knots or less. These speed reductions are recommended to decrease the risk of ship strikes with endangered blue, fin, and humpback whales, reduce ocean noise, reduce greenhouse gas emissions, and improve public health protections. In 2023, the agencies expanded the southern California Zone to include more areas of the Santa Barbara Channel.
To be consistent with federal agencies’ voluntary speed reduction issuances, Channelkeeper recommends that the City modify the City’s voluntary 12-mile VSR request in its Captain’s www.sbck.org
agreement to include the recently expanded voluntary VSR zone and specify speed reduction to 10 knots or less in this VSR zone. In addition, we recommend that City staff review transit data to track how well this recommendation is being followed and consider this information on program participation as it negotiates future cruise ship visits and schedules. • Phase in the required use of at-anchor emissions control systems when these technologies become feasible. When anchored offshore, cruise ships run auxiliary engines to provide electrical power to the ship. This produces emissions of sulfur dioxide (SO2), nitrogen oxide (NO), and particulate matter (PM). Channelkeeper recommends that as technologies to control at-anchor emissions are developed, they be required for cruise ships visiting Santa Barbara.
• Prioritize ships that have capacity to plug into shoreside electricity. One way to significantly reduce air emissions is for ships to plug into shore-power when at port since land-based energy sources are typically cleaner than auxiliary engines. In 2020, the California Air Resources Board updated its At-Berth Regulation requiring cruise ships to plug into shore-power when at port. However, Santa Barbara is exempt from this regulation.
Nevertheless, Channelkeeper recommends giving prioritization to ships equipped with plugin technology to support the move within the industry to upgrade its fleet with this advanced technology.
• Prioritize cruise lines with the best environmental and public health compliance records. Channelkeeper recommends that Waterfront staff regularly review enforcement data as it develops its schedule and prioritize ships that have the lowest number of environmental violations, penalties, and fines and the least number of violations in inspections by the Center for Disease Control Vessel Sanitation Program. • Maintain the Cruise Ship Subcommittee. Channelkeeper recommends that the Commission keep the Subcommittee in place to allow Commissioners an opportunity to provide ongoing advice on the cruise ship program and cruise ship schedules, and to allow for further public engagement. The Subcommittee would also provide a forum to periodically review the City’s cruise ship policies to update measures based on evolving industry technology. We recommend that the Subcommittee meet two to three times per year.
Thank you for considering these recommendations for improving the City’s cruise ship program.
Sincerely,
Ted Morton
Executive Director
www.sbck.org
Attachment 1: Channel Islands National Marine Sanctuary Advisory Council letter to John Stedman, City of Santa Barbara Harbor Commission Chair and Kristen Sneddon, Chair of the City of Santa Barbara Sustainability Council Committee (November 18, 2022) Date: February 9th, 2024
To: Harbor Commission
From: Cruise Ship Working Group Members; Chair Seth Anderson, John Stedman and Suzanne Cohen
Subject: Proposed Changes to the City of Santa Barbara Cruise Ship Program ___________________________________________________________________________ After the COVID pandemic when the Cruise Ship program went live again the Harbor Commission heard concerns over the program regarding the environmental impacts of cruise ships entering the Santa Barbara harbor. In reaction to the concerns raised by the public, the Harbor Commission created a Cruise Ship Working Group (later a Sub Committee and finally back to a working group) to review the program and discuss possible changes. A number of public meetings were held over the last 2 years in an effort to listen to community concerns and bring in expert speakers to inform and answer questions. We had expert representatives inform us of environmental impacts, economic impacts, government regulation and cruise ship industry representatives attend these public meetings. The primary goal of this action was to assess if updates were needed to the current program and to fully understand any changes the citizens of the City of Santa Barbara were advocating for to the existing program as well. Notably, the program has not undergone a comprehensive evaluation since its inception in 2002.
Citizens and environmental groups including Channelkeepers, Sierra Club and the Sanctuary Advisory Council have raised significant concerns regarding air quality impacts due to ship emissions, including sulfur dioxide and nitrogen oxides. There have also been concerns related to impacts on the marine environment as these vessels carry and discharge wastewater, sewage, and ballast water discharge.
However, it is vital to acknowledge that tourism represents a significant economic driver in our community. We heard from the South Coast Chamber of Commerce and Visit Santa Barbara who discussed the economic benefits of bringing cruise visitors to the city. Striking a balance between these economic benefits and the environmental impacts associated with cruise ship activities is preferred. Therefore, it is imperative that policies take into account the practical demands required for effective cruise ship services while also considering and mitigating the environmental consequences. This approach aims to benefit both the tourism industry and the city as a whole.
The recommendations presented below have resulted from 2 years of examining various facets of the Cruise Ship program. This assessment includes an evaluation of economic drivers, environmental impacts, and public input to ensure an equitable decision-making process. We hold the view that the following suggestions to the Santa Barbara City Council balance both the Attachment 4
environmental and economic concerns voiced from the community. We desire they be put into action to improve the Santa Barbara Cruise Ship Program:
1. Reporting Requirement: Recommend the Waterfront Staff to furnish an annual report on cruise ship activity. This report should encompass the number of cruise ship visits, passenger statistics, fee collections, safety and security incidents during port stays, and forthcoming year projections and schedules. Additionally it is recommended that staff begin to collect data on each ship's waste water treatment system, scrubber technology, and shoreline power connectivity technology to aid in any future decision making.
Any known environmental incidents from cruise ships that visit our Harbor must be promptly reported to both the City Council and the Harbor Commission.
2. Cruise Ship Visit Limitation: Implement and enforce an annual capacity limit for cruise ship visits or passengers receiving passenger landing services, aimed at preventing further expansion of the program. The average number of annual cruise ship visits over the past 10 years, excluding closure during COVID, is 18. We understand from staff hitting that exact number each year can be difficult due to how bookings work but recommend the program not to exceed 20 visits a year. Once the bookings for the year are within that range the city would no longer provide passenger landing services for that year. City staff receives and processes passengers consistent with the U.S. Department of Homeland Security policy. The City Council has the ability to, as is being recommended, authorize the City Manager to limit Cruise Ship Passenger Landing Services by the City of Santa Barbara.
3. Continue Restrictions on Visits during High Impact Times: Prohibit cruise ship visitation from Memorial Day to Labor Day, Prohibit cruise ship visits on weekends year round.
4. Approval Process: Mandate that all cruise ship visits receive written approval or denial from the City Administrator or delegated representative before cruise ship passenger services can commence in the City of Santa Barbara.
5. Advanced Wastewater Treatment Systems (AWTS): Require all ships visiting Santa Barbara to be equipped with Advanced Wastewater Treatment Systems (AWTS) by the year 2025.
6. Scrubber Technology: Prioritize ships without scrubber technology and those that utilize closed-looped scrubber technologies incorporating shore-side hazardous waste disposal.
7. No Discharge Zone: Maintain the current policy that prohibits any discharge within a 12 nautical mile radius of Santa Barbara.
8. Vessel Speed Reduction Zone: Request that all visiting ships follow the speed recommendations from the County of Santa Barbara “Blue Whales and Blue Skies” Program. Their current recommendation is 10 knots or less.
9. At-Anchor Emissions Control Systems: Gradually introduce the mandatory use of at-anchor emissions control systems as these technologies become available.
10. Shoreside Electricity Priority: Give preference to vessels equipped with shore power connectivity. Although the City of Santa Barbara does not currently provide these services, prioritizing such ships acknowledges their City’s commitment to environmental sustainability and encourages environmentally responsible practices.
11. Environmental and Compliance Records: Give preference to cruise lines with exemplary environmental and public health compliance records, and deny entry to ships with poor environmental track records at staff discretion.
12. Maintain the Cruise Ship Working Group: Working group will be tasked with analyzing the reports mentioned in point 1 with staff, keep open lines of communication for the community and report on the program to the full commission regularly.
13. Guideline Review: Require that the City of Santa Barbara City Council review and reapprove the established guidelines as needed, at a minimum of every three years.
14. Fiscal Implications: The recommendations as provided should stabilize and maintain the current cruise ship program at similar levels seen in recent years. However, ships do vary from 250 - 2,500 in passenger capacity, if one year has higher than average small or large shifts there will be variance. If and when more local business integrations, local seafood supply programs and community outreach programs commence (as noted below) this may increase the overall economic impact of cruise ship visits.
The increases to the per-passenger visitation fee paid by the cruise ships to the harbor are expected to gradually rise as well over the coming years..
Additional Waterfront Policy Suggestions:
15. Local Business Integration: Encourage cruise lines to further involve local businesses in shoreside excursion operations with a focus on businesses within the City of Santa Barbara.
16. Local Seafood Supply Programs: Encourage cruise lines and the local commercial fishing industry to explore the feasibility of supplying local seafood to visiting cruise ships.
17. Community Outreach: Encourage cruise lines to engage in community outreach with local educational institutions to enhance connections for education and career development in the maritime sector.
18. Per Passenger Visitation Fee Increase: Increase per passenger fees from $10 to $15 for FY24 and FY25. Review fees annually for appropriate changes.
19. Minimum Capacity Visitation Fee: Implement a minimum capacity visitation fee.
20. Last-Minute Cancellation Fee: Establish a last-minute cancellation fee.
21. Cruise Ship Best Practices Document: Create a publicly accessible Cruise Ship best practices informational document for Santa Barbara.
22. State or Federally Licensed Pilots: Suggest a state review for the requirement of State or Federally licensed ship pilots for large vessels entering the Santa Barbara port by sending a letter to our State representatives. Licensed Pilots have extensive knowledge of the local waterways and navigational hazards. In many coastal areas and ports, state regulations require ships of a certain size or type to use a licensed pilot when entering or departing. At this time Santa Barbara’s waterways do not require a licensed pilot.
23. Program Review: Conduct annual assessments of the Santa Barbara Cruise Ship program to ensure alignment with the city's goals and evolving industry sustainability best practices.
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: April 9, 2024
TO: Mayor and Councilmembers
FROM: Water Resources Division, Public Works Department; Environmental Services Division, Sustainability & Resilience Department
SUBJECT: Proposed Utility Rates
RECOMMENDATION: That Council:
A. Receive a presentation on proposed water and wastewater rates for Fiscal Years 2025 - 2028, and solid waste rates for Fiscal Year 2025; B. Set a Public Hearing date for June 25, 2024, at 2:00 p.m., for consideration of increases to the City’s water, wastewater, and solid waste rates; and C. Direct staff to send a Notice of Public Hearing to customers informing them of the Public Hearing and proposed changes to water, wastewater, and solid waste rates.
EXECUTIVE SUMMARY:
The City operates water and wastewater utilities and administers a solid waste contract with Marborg Industries. The City recovers the costs for operating water, wastewater, and solid waste services through a monthly utility bill. The revenues from these services must be sufficient to meet the ongoing cost of operating each utility. The water and wastewater enterprises are a full-service operation, which includes all necessary staffing to operate and maintain the utility, ongoing investments in capital improvements, servicing long-term debt obligations, and maintaining adequate policy reserves to provide safe and reliable drinking water and discharge of wastewater effluent both meeting strict State and Federal requirements.
To evaluate water and wastewater utilities’ revenue sufficiency, the City’s rate consultant analyzed a 10-year planning period and a four-year rate setting period (Fiscal Years 2025- 2028). Over the rate setting period, the total revenue requirements for the Water and Wastewater Funds are increasing due to inflation outpacing assumptions in previous water and wastewater rate models. The City has experienced significant increases in nearly all aspects of operations including supplies, materials, electricity, chemicals, capital construction, property and liability insurance, and increased capital policy reserve Agenda Item No. 16
File Code No. 540.11
Council Agenda Report
Proposed Utility Rates
April 9, 2024
minimums due to increases in operating and capital costs. As a result, the City’s rate consultant is recommending increases in the City’s water and wastewater rates to sufficiently meet the needs of the water and wastewater utilities over the next four years.
The factors affecting the proposed FY 2025 solid waste rates include most significantly an increase in County tipping fees, and also an adjustment to the Franchise Fee and changes to Clean Community program fees.
DISCUSSION:
Background
On October 3, 2023, City Council approved a contract with HDR Engineering Inc. (HDR) to conduct comprehensive water and wastewater rate studies and 10-year financial plans for each utility. The City regularly conducts water and wastewater rate studies, which include rate revenue projections for the next 10 years. The last water rate study was completed in 2021 and the last wastewater rate study was completed in 2022. HDR and staff have been presenting regularly to the Water Commission, Finance Committee, and City Council to receive feedback and input on the policy direction of the proposed rates.
Included below is a summary of the public meetings:
Meeting Date Meeting Body Meeting Summary
September 21, 2023 Water
Commission
Recommended that City Council authorize staff
to execute a contract with HDR for a rate study.
October 3, 2023 City Council Authorized staff to execute a contract with HDR for a rate study.
October 19, 2023 Water
Commission
Introduced the governing principles and goals
of the water and wastewater rate study.
January 18, 2024 Water
Commission
Presented revenue requirement options for
water and wastewater. The options for each
utility included varying levels of capital funding
and use of reserves below policy level.
Received input from the Commission on which
option to pursue.
February 27, 2024 Finance
Committee
Presented revenue requirement options for
water and wastewater. The options for each
utility included varying levels of capital funding
and use of capital reserves below policy level.
Recommended that City Council direct staff to
complete a cost of service analysis and return
with a final rate notice.
February 27, 2024 City Council Presented revenue requirement options for water and wastewater. The options for each
utility included varying levels of capital funding
and use of capital reserves below policy level.
City Council directed staff to complete a cost of
Council Agenda Report
Proposed Utility Rates
April 9, 2024
service analysis and return with a final rate
notice.
Wastewater Rate Changes for Fiscal Years 2025 - 2028
The City’s wastewater system plays an essential role in protecting public health and the environment. Maintaining the City’s wastewater system requires a proactive commitment to investing in the capital infrastructure and resources necessary to keep this vital system operating 24 hours a day, 365 days per year. The City’s complex wastewater system includes 256 miles of sewer mains, 7 lift stations, 25 creek crossings, over 7,000 access structures (manholes and cleanouts), 2 miles of pressurized force mains, and the El Estero Water Resource Center (El Estero) – all of which must operate seamlessly to process approximately 2 billion gallons of wastewater annually.
Revenue Requirement and Cost of Service Analysis
During the rate setting period, revenues must be sufficient to meet the cost of the City’s wastewater system, including operations and maintenance expenses, capital improvements, mandated standards of treatment, principal and interest payments on existing debt, reserves, and other obligations. In addition, recent inflation has outpaced the assumptions in previous wastewater models for both operations and maintenance and capital costs. The wastewater utility is also experiencing significant increases in allocated costs including property and liability insurance, and increased reserve minimums due to increased operating and capital costs. The sum of these factors contributes to the need for an average annual revenue increase1 of 9.5% for FY 2025 – FY 2028.
To help mitigate rate impacts to customers, capital reserves are being drawn down below minimum policy levels. This results in capital reserves dropping below City policy in multiple years, with a maximum of $1.3M (~10%) below Council policy in FY 2028. Reserves are projected to return to City policy levels in FY 2030 (outside of this 4-year rate setting period) based on the 10-year financial plan assumptions, which include future wastewater rate adjustments.
The total revenue requirement less non-rate revenue from other sources is defined as the “cost of service” for any given fiscal year. After determining the cost of service, rates are then designed to apportion the cost of service among the customer classes, according to the proportionate share of costs of service attributable to each customer class. A cost of service analysis is forward-looking and determines the proportional distribution of the revenue requirement to the City’s customer classes of service (i.e., residential, commercial). 1 It is important to note that rate revenue increases do not equate precisely to rate increases or bill impacts to individual customer classes of service. For example, a single-family residence with average wastewater use may see different impacts than a commercial customer.
Council Agenda Report
Proposed Utility Rates
April 9, 2024
Rate Structure
No changes to the City’s wastewater rate structure are proposed for this study. Residential wastewater bills are made up of two components: (1) a volumetric charge based on water usage, and (2) a fixed monthly base charge based on the number of dwelling units served by the account. For single-family customers, wastewater volumetric charges are capped at 8 hundred cubic feet (HCF) of water use. The purpose of limiting the volumetric charges is to recognize that water use above this level is likely being used for outdoor watering, which does not enter the wastewater collection system or receive treatment at El Estero. The multifamily customer class does not exhibit a strong outdoor irrigation pattern, meaning most water usage is being used primarily indoors and discharged to the City’s wastewater system.
Therefore, there is no volumetric cap for multi-family residential customers.
There are two commercial classes of service: Commercial, and Commercial High Strength/Industrial. Both classes are charged the greater of their volumetric charges or minimum monthly bill amount based on water meter size.
The City has a High Strength Surcharges fee to cover the additional treatment costs associated with high strength wastewater streams. Discharges that fall in this category include, but are not limited to, domestic septic tank/portable restroom discharges, industrial laundry services, and alcohol beverage manufacturing (e.g., breweries, wineries, and distilleries). The cost of service analysis has determined the proportional allocation of costs on a per pound basis for Biochemical Oxygen Demand, Total Suspended Solids, and Ammonia. The vast majority of commercial customers do not receive High Strength Surcharges.
Water Rate Changes for Fiscal Years 2025-2028
Revenue Sufficiency
On a long-term basis, revenues must be sufficient to meet the cost of the City’s Water System, including operations and maintenance expenses, capital improvements, mandated standards of treatment, principal and interest payments on existing debt, Council policy reserves, and other obligations. Additional rate impacts are due to inflation outpacing assumptions in previous water rate models for both operations and maintenance and capital, significant increases in allocated costs including property and liability insurance, and increased reserve minimums due to increased operating and capital costs. The sum of these factors contributes to an annual revenue increase2 of 10.5% for Fiscal Years 2025- 2026 and 10% for Fiscal Years 2027-2028.
Capital reserve funds are being drawn down to mitigate rate impacts to customers. This results in capital reserves dropping below City policy in multiple years, with a maximum of $6.3M (~20%) below Council policy in FY 2026. Reserves are anticipated to return to City 2 It is important to note that rate revenue increases do not equate precisely to rate increases or bill impacts to individual customer classes of service. For example, a single-family residence with average water use may see different impacts than a commercial customer.
Council Agenda Report
Proposed Utility Rates
April 9, 2024
policy levels in FY 2029 (outside of this 4-year rate setting period) based on the 10-year financial plan assumptions, which include future water rate adjustments.
Upcoming capital improvements include replacing six miles of water main annually (2% of the system), transmission system upgrades, reservoir replacement, and water treatment facility upgrades. Continued investment in the water system is essential to providing safe and reliable drinking water to the City’s customers. Additionally, the proposed rates will be sufficient to meet all financial obligations of the utility, including debt service and coverage requirements.
Rate Structure
Water bills are made up of two components: (1) a volumetric charge based on water usage, and (2) a fixed monthly service charge based on meter size. Even though the majority (~85%) of costs to maintain and operate the water system are fixed, the City’s water rate structure is designed to minimize increases to fixed charges and collect the majority (~70%) of revenue through volumetric charges, which are dependent on water usage. This gives customers an opportunity to reduce their water bill by decreasing water usage.
City Council has established priorities for allocating water sources to the different customer classes and tiers within the customer classes. The lowest-cost water sources are allocated to Tier 1 customers, and the more expensive water sources are allocated to the highest tiers, as water supplies are limited and higher water use is generally for discretionary purposes beyond efficient irrigation use and basic health and sanitation needs.
The City’s tiered rate structure is supported by a diverse water supply portfolio, with different supply costs for each of the City’s associated water sources. It is important to recognize that water used from the City’s various water sources can change from year to year based on hydrology, availability, and operational and management objectives aimed to provide reliable and cost-effective water service. To improve stability in water rates, the City’s rate consultant has calculated the volumetric water rates based on the estimated long-term potential supply yield from each of the City’s water sources, subject to capacity or operational constraints. This approach reduces rate volatility resulting from year-toyear changes in supply sources without affecting the potential yields used in water rate calculations.
Rates Based on Proposition 218 Cost of Service Analysis The total revenue requirement, less non-rate revenue from other sources, such as payments made by other agencies that use the City’s water treatment plant and interest earnings, is defined as the “cost of service.” This cost of service is used as the basis for proportionally distributing costs to the City’s customer classes. Rates, including tiers within each customer class, are designed in accordance with Proposition 218 so that each customer class pays a proportionate share of costs, based on the cost of service to supply water.
Council Agenda Report
Proposed Utility Rates
April 9, 2024
The tables below show examples of wastewater and water bills for single family homes based on various usage levels.
Wastewater
Usage
Level
Monthly
Usage (HCF)
Current
Bill
Proposed
FY 25 Bill
Proposed
FY 26 Bill
Proposed
FY 27 Bill
Proposed
FY 28 Bill
Low 4 $44.12 $48.02 $52.58 $57.57 $63.06
Moderate 10 $61.24 $66.14 $72.42 $79.29 $86.86
High 20 $61.24 $66.14 $72.42 $79.29 $86.86
1 HCF = 748 gallons
Water
Below example based on a 5/8” meter
Usage
Level
Monthly
Usage (HCF)
Current
Bill
Proposed
FY 25 Bill
Proposed
FY 26 Bill
Proposed
FY 27 Bill
Proposed
FY 28 Bill
Low 4 $53.00 $58.17 $64.25 $70.69 $77.77
Moderate 10 $144.14 $150.03 $165.77 $182.35 $200.59
High 20 $349.44 $381.49 $421.53 $463.69 $510.05
1 HCF = 748 gallons
Wastewater and Water Rate Outreach
The City has been ramping up public outreach associated with the anticipated water and wastewater rate changes. Since potential bill increases are larger than have been experienced in recent years, staff is undertaking a heightened level of outreach to raise awareness and ensure customers understand the facts behind the rate study cost drivers.
Key messages and talking points have been developed to guide communication efforts and touch on the most common questions.
In April, the Proposition 218 Notice that is required to be sent to customers (and is quite prescriptive), will also include a supplemental fact sheet that will discuss the infrastructure investments that are needed for our aging water and wastewater systems (see Attachment 2). The City has been including infrastructure investment information in the monthly utility bill insert, weekly City News in Brief email newsletter, and the quarterly Water Resources email newsletter. Additional outreach will be sent through these avenues as the rate noticing period commences. Staff will create a webpage specific to the current rate changes and the reasons for the increases, as well as a frequently asked questions (FAQs) section. The Council Agenda Report
Proposed Utility Rates
April 9, 2024
supplemental fact sheet, webpage, and FAQs will be translated into Spanish. Social media outreach will be conducted on Facebook, Nextdoor, and X (formerly Twitter) as well as an announcement on the new WaterSmart customer portal. Additionally, staff are planning a public webinar for May 22, 2024 to share information about the rates process and gather feedback.
The City is not alone with the significant jump in costs of service. Many agencies locally and around the state are taking actions to increase rates to match the costs of service.
Solid Waste Rate Change for Fiscal Year 2025
Several factors inform the proposed FY 2025 rates, as outlined below.
Waste Processing and Disposal
In 2016, the County of Santa Barbara and the Cities of Santa Barbara, Goleta, Buellton, and Solvang worked together to develop and build the ReSource Center at the Tajiguas Landfill. The ReSource Center is a state-of-the-art resource management facility that significantly increases the diversion of trash from landfill disposal, thereby extending the life of Tajiguas, and providing a long-term waste management solution for the South Coast.
The ReSource Center consists of a Materials Recovery Facility (MRF) that sorts trash and recovers recyclable commodities, as well as an anaerobic digester that converts organics recovered from the MRF into compostable material and biogas. In December 2018, the City executed a 22-year Materials Delivery Agreement (MDA) with the County that commits the City’s waste and associated tipping fees for processing at the ReSource Center. The County is increasing tipping fees from $176 per ton in FY 2024 to $189 per ton in FY 2025 to keep up with inflation and other cost increases.
Waste Collection and Hauling
The City adopted its current solid waste franchise hauler agreement with MarBorg Industries (MarBorg) on April 18, 2023, which went into effect on June 8, 2023. As part of this agreement, MarBorg’s base compensation for curbside cart collection and other collection services remains flat in FY 2025. In future years, increases to compensation will be based on inflation.
Franchise Fees
Franchise fees are paid by MarBorg to the City for the use of the City’s rights-of-way and impact of the solid waste service on municipal infrastructure. These fees are part of the negotiated franchise agreement and represent costs the City incurs for the right of use of City infrastructure. Franchise fees are incorporated into the rates.
Council Agenda Report
Proposed Utility Rates
April 9, 2024
City Programs
In addition to paying for waste hauling and disposal, solid waste rate revenue also pays for various City programs managed by the Clean Community Division. These programs include abandoned waste removal in the public rights-of-way, maintenance of public containers (i.e., public trash cans), clean-up and abatement of encampments throughout the City, public education and outreach, compliance with City reserve policies, and other environmental programs that ensure the City complies with rapidly developing State regulations and maintains its status as an environmentally forward City.
Fiscal Year 2025 Rate Increase
Several factors inform the proposed FY 2025 rates. As mentioned above, the increase of County tipping fees to $189 per ton in FY 2025 will increase overall solid waste rates by
2.8%. An adjustment to the Franchise Fee will reduce overall rates by 0.2%. Changes to Clean Community program fees will decrease overall rates by 0.7%.
The combination of these adjustments results in a 1.9% total increase for solid waste rates, as shown in the table below.
Santa Barbara Rate Increases Effective July 2, 2024
Hauler (MarBorg) Compensation 0.0%
Tipping Fee Increase (County) 2.8%
Other City Programs -0.9%
TOTAL Change to Customer Charges 1.9%
BUDGET/FINANCIAL INFORMATION:
The proposed rate schedules support the Water and Wastewater Funds budget submittals for Fiscal Year 2025, and aligns the funds with their 10-year financial plan.
Over the four-year rate setting period, the proposed water and wastewater rates will generate necessary rate revenue, which when combined with non-rate revenue and use of reserves, will be sufficient to support the costs of operating and maintaining the water and wastewater systems. Under the proposed water and wastewater rate structures, the City will utilize non-rate revenue and capital reserves below policy level to reduce, or “buy down”, the revenue requirement, which is the total amount of funding that needs to be generated from rate payers in any given year.
The City has executed two long-term water supply agreements: (1) a Recycled Water Agreement with the La Cumbre Mutual Water Company, and (2) a Water Supply Agreement (WSA) with Montecito Water District for the sale of potable water secured by the Charles E. Meyer Desalination Plant. Without these agreements, particularly the WSA, the City would need to either significantly increase rates above what is being proposed, reduce planned capital investments in aging infrastructure, or execute a Council Agenda Report
Proposed Utility Rates
April 9, 2024
combination of these actions. Continuous deferral of capital funding would lead to underinvestment in the water system, leading to more frequent emergency repairs and higher maintenance costs in the future.
Under the proposed solid waste rates, the City will fulfill its contractual obligations to the County for waste processing and to MarBorg for franchised waste hauling services. The proposed rates also enable compliance with State regulations and fund additional management of encampment and community clean-up.
WATER COMMISSION RECOMMENDATION:
The water and wastewater rates were presented to the Water Commission on March 21, 2024, and the Commission voted 4:0:1 in support of staff’s recommendations.
ATTACHMENTS: 1. Draft Notices of Public Hearing on Utility Rates
2. Draft Supplemental Rate Fact Sheet
PREPARED BY: Joshua Haggmark, P.E., Water Resources Manager/GC/lm Dustin Merback, Environmental Services Specialist
SUBMITTED BY: Clifford M. Maurer, P.E, Public Works Director Alelia Parenteau, Sustainability and Resilience Director APPROVED BY: City Administrator’s Office
Date: Tuesday, June 25, 2024, 2:00 p.m.
Place: City of Santa Barbara Council Chambers, City Hall, 735 Anacapa Street, Santa Barbara Meeting details will be posted no less than 72 hours prior to the start of the Public Hearing on the City Council meeting agenda located at SantaBarbaraCA.gov/CAP NOTICE OF PUBLIC HEARING:
PROPOSED CHANGES TO CITY OF SANTA BARBARA WATER RATES
CHECK OUT THE WATER RATE CALCULATOR AT:
www.SantaBarbaraCA.gov/RateCalculator
The average single family home uses 8 HCF per month and would see their water bill increase from $113.76 to $119.41, for FY25, reflecting a difference of $5.65 (or an increase of approximately 5%).
When do the new rates take effect? City Council will consider adopting water rates on July 2, 2024. The new rates will be effective July 2, 2024.
How do I stay informed?
• Watch City Council meetings online at SantaBarbaraCA.gov/CityTV or tune in to City TV Channel 18. • Explore updated information on water rate changes at SantaBarbaraCA.gov/RateChanges. • Contact City staff at (805) 564-5387.
• Attend City Council meetings in person or electronically; visit SantaBarbara.gov/CAP for meeting details.
Please note, the rates included in this Notice are the highest possible rates that could go into effect July 2, 2024.
PROPOSED WATER RATES FOR:
FISCAL YEARS 2025, 2026, 2027, AND 2028
You are receiving this notice because our records indicate that you are a City of Santa Barbara utility customer.
If you are not a City water customer, please disregard this Notice.
This Notice describes proposed changes to water rates and explains how you can participate in the public process. The City’s water rate structure is based on a comprehensive rate study that uses a rate model to evaluate the cost of water service, as required by Article XIII D, Section 6 of the California constitution.
Why are water rates changing?
The proposed water rates will ensure that the City continues to provide safe and reliable water service by funding the ongoing cost of operating and maintaining the City’s water system, including investing in capital infrastructure, meeting water quality standards, servicing debt obligations, and funding reserves.
What goes into a water bill?
Most water bills are made up of two key components: (1) a volumetric charge based on water usage, and (2) a fixed monthly service charge based on meter size. The City’s rate structure limits the amount of revenue recovered from fixed charges, resulting in customers having more control over the total cost of their water bill by reducing water usage. Please refer to the second page of this notice for detailed information on proposed volumetric and fixed monthly charges.
How will the proposed changes impact my water bill?
Customers are encouraged to use the online water rate calculator at SantaBarbaraCA.gov/RateCalculator to see how the new rates could impact their bill. The table below shows sample water bills for single family homes based on various levels of usage and a 5/8” meter for Fiscal Years (FY) 2025 - 2028.
Usage Level Monthly Usage
(HCF) Current Bill Proposed FY25 Bill
Proposed
FY26 Bill
Proposed
FY27 Bill
Proposed
FY28 Bill
Low 4 $53.00 $58.17 $64.25 $70.69 $77.77
Moderate 10 $144.14 $150.03 $165.77 $182.35 $200.59
High 20 $349.44 $381.49 $421.53 $463.69 $510.05
ATTACHMENT 1
TABLE 2—PROPOSED MAXIMUM FIXED MONTHLY SERVICE CHARGES
*What is a Monthly Water Budget? The Monthly Water Budget for irrigation accounts is a calculation of Tier 1 allotment based on the property’s irrigated landscape area and the monthly watering needs of plants.
TABLE 3—PROPOSED MAXIMUM FIXED MONTHLY PRIVATE FIRE SERVICE CHARGES (IF REQUIRED) Note: Multi-family auxiliary master meters that serve submeters owned by the City are subject to a monthly operations and maintenance fee not to exceed $136 per month in FY25, escalated annually by the Engineering New Record Construction Cost Index.
How do I protest? If you wish to submit a written protest of any of the above increases, your protest must be received by the City Clerk of the City of Santa Barbara at 735 Anacapa Street, Santa Barbara, CA, 93101, prior to the close of the public hearing on June 25, 2024. Protests must include your name, service address, and whether you are protesting the amount of the fee increase, the basis for calculation of the fee, or both. Written protests may be mailed to or delivered in-person at the address above, or deposited in the bill payment drop box slot located on the exterior of the building on the De La Guerra Plaza side. Only written protests received before the close of the public hearing on June 25, 2024, will be counted. During the hearing, the City Council will consider all protests and public testimony. Protests are public records. One written protest per parcel or service address will be tabulated. If you later challenge the rates in court, you may be limited to the grounds stated in your protest. If you challenge the City's rate setting action in court, you may be limited to the issues and grounds raised in a written protest or in public testimony at the public hearing. There is a 120-day statute of limitation for challenging any new, increased, or extended fee or charge (California Government Code Section 53759).
TABLE 1 – PROPOSED MAXIMUM VOLUMETRIC CHARGES
All rates are in $/HCF. (1 HCF [Hundred Cubic Feet] = 748 gallons) Proposed Customer Class Tiers Current FY25 FY26 FY27 FY28
Single Family Residential
First 4 HCF $5.10 $5.49 $6.06 $6.67 $7.34
Next 12 HCF $15.19 $15.31 $16.92 $18.61 $20.47
All other HCF $28.54 $34.90 $38.56 $42.42 $46.66
Multi-Family Residential
First 4 HCF (per dwelling unit) $5.10 $5.49 $6.06 $6.67 $7.34 Next 4 HCF (per dwelling unit) $15.19 $15.31 $16.92 $18.61 $20.47 All other HCF $28.54 $34.90 $38.56 $42.42 $46.66
Commercial/Industrial 100% of base allotment $7.77 $8.19 $9.05 $9.96 $10.96 All other HCF $28.45 $37.82 $41.80 $45.98 $50.58
Irrigation – Residential &
Commercial
100% of monthly water budget* $15.19 $15.31 $16.92 $18.61 $20.47 All other HCF $28.54 $34.90 $38.56 $42.42 $46.66
Irrigation – Recreation/Parks/
Schools
100% of monthly water budget* $5.98 $7.26 $8.02 $8.82 $9.70 All other HCF $28.54 $34.90 $38.56 $42.42 $46.66
Irrigation – Agriculture 100% of monthly water budget* $3.98 $5.13 $5.67 $6.24 $6.86 All other HCF $28.54 $34.90 $38.56 $42.42 $46.66
Recycled Water All HCF $4.99 $6.10 $6.74 $7.41 $8.15
5/8” 3/4” 1” 1 ½” 2” 3” 4” 6” 8” 10”
Current $32.60 $47.73 $77.97 $153.59 $244.33 $531.67 $955.12 $1,968.37 $3,631.93 $5,749.18 Proposed FY25 $36.21 $52.50 $85.09 $166.55 $264.30 $573.86 $1,030.06 $2,121.66 $3,913.84 $6,194.80 FY26 $40.01 $58.01 $94.02 $184.04 $292.05 $634.12 $1,138.22 $2,344.43 $4,324.79 $6,845.25 FY27 $44.01 $63.81 $103.42 $202.44 $321.26 $697.53 $1,252.04 $2,578.87 $4,757.27 $7,529.78 FY28 $48.41 $70.19 $113.76 $222.68 $353.39 $767.28 $1,377.24 $2,836.76 $5,233.00 $8,282.76 1" 1 ½” 2" 4" 6" 8" 10" 12"
Current $3.33 $5.18 $8.37 $39.58 $110.47 $232.76 $416.70 $671.63 Proposed
FY25 $4.67 $6.67 $10.12 $43.86 $120.51 $252.72 $451.58 $727.20 FY26 $5.16 $7.37 $11.18 $48.47 $133.16 $279.26 $499.00 $803.56 FY27 $5.68 $8.11 $12.30 $53.32 $146.48 $307.19 $548.90 $883.92 FY28 $6.25 $8.92 $13.53 $58.65 $161.13 $337.91 $603.79 $972.31 ATTACHMENT 1
Date: Tuesday, June 25, 2024, 2:00 p.m.
Place: City of Santa Barbara Council Chambers, City Hall, 735 Anacapa Street, Santa Barbara Meeting details will be posted no less than 72 hours prior to the start of the Public Hearing on the City Council meeting agenda located at SantaBarbaraCA.gov/CAP NOTICE OF PUBLIC HEARING:
PROPOSED CHANGES TO CITY OF SANTA BARBARA WASTEWATER RATES *Applicable to all accounts serving two to four detached dwelling units, Accessory Dwelling Units served by their own water meter, and all accounts serving a dwelling unit attached to no more than 3 additional dwelling units. **Applicable to all accounts serving five or more dwelling units, and to accounts serving a dwelling unit attached to 4 or more additional dwelling units.
PROPOSED WASTEWATER RATES FOR:
FISCAL YEARS 2025, 2026, 2027, AND 2028
You are receiving this notice because our records indicate that you are a City of Santa Barbara utility customer. If you are not a City wastewater customer, please disregard this Notice.
This Notice describes proposed changes to wastewater rates and explains how you can participate in the public process. The City’s wastewater rates are based on a comprehensive rate study that uses a rate model to evaluate the cost of wastewater service, as required by Article XIII D, Section 6 of the California constitution.
Why are wastewater rates changing?
The City’s wastewater system plays a leading role in the protection of public health and the environment.
Maintaining the wastewater system requires a proactive commitment to investing in the capital infrastructure and resources necessary to keep this vital system operating 24 hours a day, 365 days per year. The proposed rate changes will enable the City to meet the needs of the wastewater system, including operation and maintenance costs, capital improvements, mandated standards of treatment, debt service, contingency reserves, and other financial obligations.
What goes into a wastewater bill?
Residential wastewater bills are made up of two key components: (1) a volumetric charge based on water usage, and (2) a fixed monthly base charge. For single-family customers, wastewater volumetric charges are not charged above a certain level of water use. Commercial customers are charged the greater of their volumetric charges or minimum monthly bill amount based on meter size.
How do I stay informed?
• Watch City Council meetings online at SantaBarbaraCA.gov/CityTV or tune in to City TV Channel 18. • Explore information on rate changes at SantaBarbaraCA.gov/RateChanges. • Contact City staff at (805) 564-5387.
• Attend City Council meetings in person or electronically: visit SantaBarbaraCA.gov/CAP for meeting details.
How will the proposed changes impact my wastewater bill? The table below shows sample wastewater bills for common service levels.
Customer Class Account Characteristics
Usage Total Monthly Wastewater Charges
(hcf/mth) Current Bill FY 25 Proposed Bill Difference
Single Family Residential 5/8” meter 8 $61.24 $66.14 $4.90 Multi-Family Residential: 1-4
attached units*
1 unit in a small multi-unit
complex 4 $44.12 $48.02 $2.90
Multi-Family Residential: 5 or
more attached units**
1 unit in a large multi-unit
complex 4 $44.12 $48.02 $2.90
Commercial 1" Meter 14 $90.46 $93.24 $2.78
ATTACHMENT 1
Proposed
Customer Class Charge Type Current FY25 FY26 FY27 FY28
Single Family Residential Monthly Base Charge ($/Dwelling Unit) $27.00 $29.90 $32.74 $35.85 $39.26 Usage Charge up to 8 HCF ($/HCF) $4.28 $4.53 $4.96 $5.43 $5.95 Multi-Family Residential
4 or less Dwellings
Monthly Base Charge ($/Dwelling Unit on account) $27.00 $29.90 $32.74 $35.85 $39.26 Usage Charge ($/HCF) $4.28 $4.53 $4.96 $5.43 $5.95
Multi-Family Residential
5+ Dwellings
Monthly Base Charge ($/Dwelling Unit on account) $27.00 $29.90 $32.74 $35.85 $39.26 Usage Charge ($/HCF) $4.28 $4.53 $4.96 $5.43 $5.95
Commercial and Commercial High Strength/Industrial customers are charged a fixed charge dependent on meter size (Tables 2-3), or a volumetric charge dependent on the quantity of water consumed (Table 4), whichever is greater.
TABLE 2— WASTEWATER PROPOSED COMMERCIAL FIXED CHARGES BY METER SIZE 5/8” 3/4” 1” 1 ½” 2” 3” 4” 6” 8” 10”
Current $51.69 $77.54 $90.46 $129.23 $206.76 $387.68 $646.13 $1,292.25 $2,067.60 $2,972.18 FY 2025 $53.28 $79.93 $93.24 $133.21 $213.12 $399.61 $666.01 $1,332.00 $2,131.20 $3,063.61 FY 2026 $58.34 $87.51 $102.10 $145.85 $233.36 $437.55 $729.25 $1,458.50 $2,333.60 $3,354.55 FY 2027 $63.88 $95.82 $111.79 $159.70 $255.52 $479.10 $798.50 $1,597.00 $2,555.20 $3,673.10 FY 2028 $69.95 $104.92 $122.41 $174.87 $279.79 $524.61 $874.36 $1,748.72 $2,797.94 $4,022.04 5/8” 3/4” 1” 1 ½” 2” 3” 4” 6” 8” 10”
Current $59.70 $89.55 $104.48 $149.25 $238.80 $447.75 $746.25 $1,492.50 $2,388.00 $3,432.75 FY 2025 $66.31 $99.46 $116.05 $165.78 $265.24 $497.33 $828.88 $1,657.75 $2,652.40 $3,812.83 FY 2026 $72.61 $108.91 $127.07 $181.53 $290.44 $544.58 $907.63 $1,815.25 $2,904.40 $4,175.08 FY 2027 $79.51 $119.26 $139.15 $198.78 $318.04 $596.33 $993.88 $1,987.75 $3,180.40 $4,571.83 FY 2028 $87.06 $130.59 $152.37 $217.66 $348.25 $652.98 $1,088.30 $2,176.59 $3,482.54 $5,005.15 TABLE 3— WASTEWATER PROPOSED COMMERCIAL HIGH STRENGTH/INDUSTRIAL FIXED CHARGES BY
METER SIZE
Proposed
Customer Class Current FY25 FY26 FY27 FY28
Commercial $5.27 $6.56 $7.18 $7.86 $8.61
Commercial High Strength/Industrial $6.65 $7.23 $7.92 $8.67 $9.49 TABLE 4— WASTEWATER PROPOSED VOLUMETRIC RATES ($/HCF)
***If the City’s Water Resources Laboratory determines that a customer has exceeded the high strength discharge
limit for Biochemical Oxygen (BOD), Total
Suspended Solids (TSS), or Ammonia, a
surcharge will be assessed for each constituent in excess of its relative limit.
TABLE 1—WASTEWATER PROPOSED RESIDENTIAL FIXED & VOLUMETRIC RATES 1 HCF (hundred cubic feet) = 748 gallons. FY = fiscal year July 1—June 30 TABLE 5— WASTEWATER PROPOSED STRENGTH SURCHAGES ($/LB)*** Current FY25 FY26 FY27 FY28
BOD (>750 mg/l) $0.34 $0.30 $0.33 $0.36 $0.39
TSS (>850 mg/l) $0.48 $0.58 $0.64 $0.70 $0.77
Ammonia (>90 mg/l) $1.17 $1.37 $1.50 $1.64 $1.80
How do I protest? If you wish to submit a written protest of any of the above increases, your protest must be received by the City Clerk of the City of Santa Barbara at 735 Anacapa Street, Santa Barbara, CA, 93101, prior to the close of the public hearing on June 25, 2024. Protests must include your name, service address, and whether you are protesting the amount of the fee increase, the basis for calculation of the fee, or both. Written protests may be mailed to or delivered in-person at the address above, or deposited in the bill payment drop box slot located on the exterior of the building on the De La Guerra Plaza side. Only written protests received before the close of the public hearing on June 25, 2024, will be counted. During the hearing, the City Council will consider all protests and public testimony. Protests are public records. One written protest per parcel or service address will be tabulated. If you later challenge the rates in court, you may be limited to the grounds stated in your protest. If you challenge the City's rate setting action in court, you may be limited to the issues and grounds raised in a written protest or in public testimony at the public hearing. There is a 120- day statute of limitation for challenging any new, increased, or extended fee or charge (California Government Code Section 53759).
ATTACHMENT 1
PROPOSED TRASH & RECYCLING
RATE CHANGES FOR FISCAL YEAR 2025
You are receiving this Notice because our records indicate that you are a City of Santa Barbara utility customer. This Notice describes the proposed trash and recycling rate changes, and explains how you can file a protest and participate in the process. Some customers are billed by the City for some, but not all, services. This Notice applies only to the services that appear on your bill from the City.
Trash & Recycling Revenue Requirement Increases
The proposed July 2, 2024 rate schedule increase for all sectors is a total of 1.9%.
Santa Barbara Rate Increases Effective July 2, 2024
Hauler (MarBorg) Compensation 0.0%
Tipping Fee Increase (County) 2.8%
Other City Programs -0.9%
TOTAL Change to Customer Charges 1.9%
How can I lower my trash bill?
In general, some customers may be able to lower their bills by “right-sizing” their service. Customers can make sure that they are diverting lower-cost recyclables from their higher-cost trash containers, increasing recycling service while decreasing trash service, if possible. Many Business and Large Residential (5+ unit) customers are also subscribed to more greenwaste service than they need, especially if they have landscapers that can selfhaul trimmings instead of using greenwaste containers for disposal.
When do the new rates take effect?
City Council will consider adopting these rates on July 2, 2024 (one week after the public hearing). The new rates will be effective starting July 2, 2024.
How do I stay informed?
• Watch City Council meetings live online at SantaBarbaraCA.gov/CityTV or tune in to City TV Channel18. • Attend City Council meetings; visit SantaBarbaraCA.gov/CAP for meeting participation details. • Explore updated information on recycling, waste reduction, and program enhancements at SantaBarbaraCA.gov/Recycling.
NOTICE OF PUBLIC HEARING:
PROPOSED CHANGES TO CITY OF SANTA BARBARA TRASH & RECYCLING RATES Date: Tuesday, June 25, 2024 - 2:00 p.m.
Place: City of Santa Barbara Council Chambers, City Hall, 735 Anacapa Street, Santa Barbara.
Social Distancing orders may require the hearing to be held electronically. Meeting details will be posted no less than 72 hours prior to the start of the Public Hearing on the City Council meeting agenda located at SantaBarbaraCA.gov/CAP.
ATTACHMENT 1
How will the proposed changes impact my monthly trash & recycling bill? Representative trash and recycling service levels are demonstrated in the table below.
To preview your July 2024 estimated bill please visit our Trash & Recycling Bill Calculator at SantaBarbaraCA.gov/TrashRates or call City Trash & Recycling at (805) 564-5631.
Customer Profile Representative
Service
Current
Rates
Proposed
Rates % Change
1 Unit
Small Residential
65 gal trash,
65 gal greenwaste,
65 gal recycle,
1x/week
$59.82 $60.60 1.30%
2-4 Unit
Small Residential (Cart/Can Service)
3-65 gal trash,
95 gal greenwaste,
3-95 gal recycle,
1x/week
$106.06 $107.44 1.30%
5+ Unit
Large Residential (Cart/Can Service)
5-95 gal trash,
95-gal greenwaste,
5-95 gal recycle,
1x/week
$468.85 $475.36 1.39%
5+ Unit
Large Residential
(Small/Medium Dumpster Service)
4 yard trash,
2 yard recycle,
1x/week
$618.20 $626.80 1.39%
Business
(Cart/Can
Service)
3-95 gal trash,
3-95 gal recycle,
2x/week
$621.87 $635.40 2.18%
Business
(Dumpster
Service)
4 yard trash,
4 yard recycle,
2x/week
$1,749.26 $1,787.31 2.18%
How can I get more information and copies of the proposed rate schedules? Please visit SantaBarbaraCA.gov/TrashRates or call (805) 564-5631 for trash & recycling questions.
How do I protest?
If you wish to submit a written protest of any of the above increases, your protest must be received by the City Clerk of the City of Santa Barbara at 735 Anacapa Street, Santa Barbara, CA, 93101, prior to the City Council’s consideration of this item on June 25, 2024. Protests must include your name, service address, and whether you are protesting the amount of the fee increase, the basis for calculation of the fee, or both. In the event that social distancing practices remain in place, mailed protests are encouraged. Written protests may be delivered in-person at the address above, deposited in the bill payment drop box slot located on the exterior of the building on the De La Guerra Plaza side. Only protests received before the close of the public hearing on June 25, 2024, will be counted. During the hearing, the City Council will consider all written protests and public testimony. Protests are public records. The public hearing may be conducted via teleconference or other electronic meeting format. Submission of written protests by personal delivery during the meeting may not be permitted. One written protest per parcel or service address will be tabulated. If you challenge the City's rate setting action in court, you may be limited to the issues and grounds raised in a written protest or in public testimony during the publichearing.
CHECK OUT THE TRASH & RECYCLING RATE CALCULATOR AT:
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 2