Agenda packet, first session — Santa Barbara City Council, September 10, 2024 (part 3 of 6)

I. OVERVIEW
Background
The California Department of Housing and Community Development (“HCD”), through its Local Housing Trust Fund (“LHTF”) Program, announced the release of a Notice of Funding Availability (“NOFA”) for approximately $53 million in funds for the LHTF Program. This funding is authorized by Health and Safety Code (“HSC”) Section 50843.5 and provides dollar-for-dollar Matching Grants to Local Housing Trust Funds established by cities and counties, Native American Tribes and incorporated 501(c)(3) nonprofit organizations.

Program Funds awarded under this NOFA shall be used to provide construction loans and/or permanent financing loans at simple interest rates of no higher than 3 percent per annum, for payment of predevelopment costs, acquisition, construction, or rehabilitation of Affordable rental housing projects, Emergency Shelters, Permanent Supportive Housing, Transitional Housing, or Affordable homebuyer/homeowner projects, including assistance to income-eligible households to purchase for-sale units. Funds may also be used to construct, convert, reconstruct, rehabilitate, and/or repair Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs).

In January 2024, the City Council of the City of Santa Barbara established a Local Housing Trust Fund (“SBLHTF”) by adopting an ordinance, which amended the Santa Barbara Municipal Code by adding Chapter 26.80. This action was taken to provide a local funding source to increase the stock of permanently affordable housing units in their jurisdiction. It also provided an opportunity to apply annually to the State LHTF Program for Matching Funds to further the financial feasibility of affordable housing projects.

The State LHTF Program has reserved fifteen percent of the funds made available by their NOFA for Local or Regional Housing Trust Funds meeting the definition of New Local Housing Trust Fund. The City’s new SBLHTF meets this criterion this year and will be eligible for consideration of these additional reserved funds.

Program Information
Proposal Applicants should read and understand the State LHTF Program, Final 2020 Guidelines (“LHTF Guidelines”), which can be accessed at the following website:
https://www.hcd.ca.gov/grants-funding/active-funding/lhtf/docs/2020-FinalGuidelines.pdf Further State LHTF Program information may be accessed at HCD’s website:
https://www.hcd.ca.gov/grants-and-funding/programs-active/local-housing-trust-fund Terminology
Capitalized terms not defined herein have the meaning given to them in the LHTF Guidelines.

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City Applicant – means the City of Santa Barbara, a local government which has created a Local Housing Trust Fund to receive specific revenue to address local housing needs (“City”).

City website – Additional information may be found on the City’s website at:
https://santabarbaraca.gov/services/housing-human-services/affordable-housing Eligible Project – means any of the following:
(1) Rental housing projects including Permanent Supportive Housing. The affordability of all units assisted by Program Funds shall be income and rent restricted for not less than 90 years according to the City of Santa Barbara’s Affordable Housing Policies and Procedures manual.
(2) Emergency Shelters and Transitional Housing, with a required minimum term of 15 years;
(3) Homeownership Projects of Units Within a Homeownership Project, consisting of homebuyer assistance and rehabilitation of homes owned by income-eligible owner-occupants. Homebuyer and owner-occupied rehabilitation activities may include construction, conversion, or rehabilitation of ADUs or JADUs. (4) Construction, conversion, or rehabilitation of ADUs or JADUs without an Eligible Homeownership Project, consisting of a loan to a homeowner to build, convert, or rehabilitate an ADU or JADU.

Matching Funds – means eligible funding according to LHTF Guidelines, Section 104 available in the SBLHTF that will be utilized to match on a dollar-for-dollar basis with LHTF Program funds.

Program Administrative Costs – means pursuant to LHTF Guidelines, Section 105(b), if an application is awarded, not more than 5 percent of the Program Funds and not more than 5 percent of the Matching Funds may be used for administrative costs.

Program Funds – means funds provided by HCD on a dollar-by-dollar match with the City’s Matching Funds for awarded project(s).

Proposal Applicant – means a private or tax-exempt 501(c)(3) non-profit organization incorporated or organized in the State of California or another state of the United States, or local units of government, who demonstrate the required experience, commitment, and capacity to carry out one or more of the eligible project criteria defined in this RFP in accordance with federal and state regulations and is submitting a proposal in response to this RFP.

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Program Objective
The objective of the LHTF Program is to expand sources of funding for housing, and to expand the supply of Affordable housing through the creations of new Local Housing Trust Funds, and to support the on-going operation of existing Local Housing Trust Funds.

The objective of the SBLHTF is to provide a local funding source to increase the stock of permanently affordable housing units in the City of Santa Barbara. It also provides an opportunity to apply annually to the State LHTF Program for Matching Funds to further the financial feasibility of affordable housing projects.

Program Funding
The City of Santa Barbara (City) currently has $2.9 million eligible for application to the LHTF Program for Matching Funds. The City is accepting proposals for eligible projects and will determine the amount of funding for application to the LHTF Program according to the project’s feasibility and financial needs, as well as the amount of available Matching Funds. Program Administrative Costs will apply to each awarded project. The City may apply for up to $2.9 million in Matching Funds, which may be utilized in combination with other sources of funding. Projects applying for LHTF Program Funds may apply for or receive other funds from the City. Funds from sources other than the City may also be used by projects as long as the requirements of the other funding source(s) are not in conflict with the requirements of the LHTF Program. The City reserves the right to allocate funding and amend the level of funding available.

Form of Program Funding
The City will provide LHTF Program and Matching Funds to successful Proposal Applicant(s) in the form of loan(s) at simple interest rate(s) of 3 percent per annum.

II. FUNDING RESTRICTIONS & ELIGIBILITY
Funding Request Restrictions
The LHTF Program has specific funding specifications:
• The minimum application amount that will be awarded is $500,000 and the maximum is $5 million.
• Projects must be located in the City of Santa Barbara’s jurisdiction. • Administrative expenses may not exceed 5 percent of Program Funds and Matching Funds
III. PROJECT REQUIREMENTS
Project Income Limit Restrictions
LHTF Program funds shall be allocated to Eligible Projects in compliance with all of the following:
• A minimum of 30 percent of Program Funds and Matching Funds, after deducting administrative expense, shall be expended on assistance to Extremely LowIncome Households. To comply with this requirement, dwelling units or shelter City of Santa Barbara – HCD LHTF Program Request for Proposals

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beds must be Affordable to and restricted for Extremely Low-Income Households with household income of no more than 30 percent of Area Median Income (AMI). • No more than 20 percent of the Program Funds and Matching Funds, after deducting administrative expense, shall be expended on assistance to ModerateIncome Households. To comply with this requirement, dwelling units must be Affordable to and restricted for Moderate-Income Households with household income of no more than 120 percent of AMI.
• The remaining Program Funds and Matching Funds shall be expended on assistance to Lower-Income Households. To comply with this requirement, dwelling units must be Affordable to and restricted for Lower-Income Households with household income of no more than 80 percent AMI.

IV. PROPOSAL PROCESS
Proposal Criteria
Proposal Applicants (including affiliates) cited for non-compliance in federal or state housing programs or in a development/program administered by the City shall not receive an approval for application for LHTF Program funds unless or until such non-compliance is cleared to the satisfaction of the City in its sole discretion.

Timeline
The proposal dates/milestones are as follows:

Date Event
July 9, 2024 HCD LHTF Program NOFA released
August 2, 2024 SBLHTF RFP released
August 23, 2024 RFP Proposals due to the City by 4:00 p.m.

August 30, 2024 Notification to Proposal Applicant(s) of award recommendations to Council.

September 10, 2024 Finance Committee and City Council project approvals September 17, 2024 HCD LHTF Program NOFA application deadline December 2024 HCD LHTF Program award announcements
Proposal Materials
Complete and submit a proposal and required attachments:
• Project Type and Activity
• Project Contact Information
• Name of Project
• Detailed Project Description
• Explanation of Site Control
• Description of Land Use Approvals Obtained or Required • Site Map, Plans and Development Renderings
• Total Number of Units and mix of number of bedrooms and bathrooms City of Santa Barbara – HCD LHTF Program Request for Proposals

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• Total Number of Restricted Units with Income-level restrictions identified with size of units and number of bedrooms and bathrooms
• Partnership Agreement (if applicable)
• Qualifications of Development Team (e.g., resumes)
• Developer’s Experience
• Developer/Partnership Financial Statements
• Developer’s Corporate Status
• Project Timeline/Schedule
• Map demonstrating the development is not in a High Fire Zone (if the project is not subject to WUI building codes)
• Documentation explaining where the project is in the City’s planning/building division’s processes
• Market Assessment or Study
• Affirmative Marketing Plan
• Tenant Selection Plan
• Supportive Services Plan (if applicable)
• Status of CEQA and NEPA environmental reviews
• Total Development Cost Line-Item Budget and Sources and Uses Statement • Listing of all Funding Sources Identified or Committed (and any letters of commitment obtained)
• 20-Year Operating Proforma
• Required debt coverage ratio
• Minimum projected operating expenses
• Required replacement reserve
• Required capitalized operating reserve
• Requirements for positive cash flow
• Required projected vacancy rate
• Requirements for construction contingency if construction financing is being provided with LHTF funds
• Requirements for senior lender loan types and junior lender loan types • Leasehold security requirements
The full proposal with the Proposal Applicant’s cover letter signed by the Proposal Applicant’s authorized representative and attachments must be saved in a single zipped folder and submitted via email to:

[email protected].

The subject line shall include the following text:

LHTF PROGRAM Proposal – Proposal Applicant’s Name.

No other formats of submission will be accepted unless approved in advance by the City. Hard copies will not be required but should be kept in your files for auditing purposes.

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The complete PDF of the proposal and attachments as instructed above must arrive by the deadline below:
* * PROPOSAL DEADLINE: Friday, August 23, 2024, by 4:00 p.m. * * V. REVIEW PROCESS AND SCORING
The City’s selection process will include the following reviews: eligibility review, assessment of long-term project viability, verification of financial feasibility and cost reasonableness, project timeliness and schedule, and Proposal Applicant’s capacity.

Award Process
Method of Award – Complete proposals received on or before the deadline will compete against each other for recommendation of funding. Recommendations for application to the LHTF Program will be made by the City Council for one or more of the complete proposal(s). The number and funding amount of recommendations will be subject to the availability of requested funding.

Point System
Points will be awarded according to the Rating Criteria described in Section VI of this RFP.

Review Process
Proposals will be reviewed by a committee comprised of Community Development Department staff who will review and score all proposals based on the requirements and Rating Criteria described herein.

1. Communication with Contact Person. The City will communicate only with the contact person(s) listed in the proposal. Information received from persons other than the contact person(s) will be disregarded by the City.

2. Completeness. The review process will begin with a review for completeness.

Proposals that are incomplete may be rejected without further review or opportunity to complete the proposal.

3. Potential City Requests for Clarification. The City may, but shall not be obligated to, follow up with a proposal’s contact person during the proposal review process in a telephone conversation or in writing in order to obtain clarification should the City determine it to be advisable or necessary. Proposals should endeavor to provide thorough and complete proposals as they may not have an opportunity for subsequent communications about submitted proposals.

4. Order of Award. During the competitive proposal period, complete proposals without deficiencies (including proposals that cure deficiencies within the allowed response period), and that are determined to meet threshold requirements and comply with the requirements hereof, will be recommended as projects to the City Council in descending order of point score (subject to availability of SBLHTF City of Santa Barbara – HCD LHTF Program Request for Proposals

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funding). The City reserves the right to reduce requested awards and number of LHTF Program-assisted units at its sole discretion.

Underwriting Review
Underwriting requirements, as shown in Appendix B of this RFP, will be used to assess project proposals.

Duplication of Benefits
The City will review proposal materials to ensure that there is no duplication of benefits.

Successfully funded projects will also be reviewed for duplication of benefits by the City at the time the loan documents are executed and at project close-out.

VI. RATING CRITERIA
HCD’s Rating Criteria for City’s Application to HCD
LHTF Program applications shall be scored competitively based upon the following criteria:

Rating Criteria Max
Pts.

Non-Residential Matching Funds:

Extent to which the City Applicant provides Matching Funds from sources other than residential Local Impact Fees or In Lieu Fees (Guidelines Section, 106(f)(1))
• 0% – 25% from other sources ~ 5 points
• 26% - 50% from other sources ~ 10 points
• 51% or more from other sources ~ 15 points
15 Deeper Income Targeting:

Extent to which the City Applicant commits to expend less than 20 percent of Program Funds and Matching Funds to serve Moderate-Income Households (Guidelines, Section 106(f)(2)
• 11% - 18% funding for Moderate-Income Household ~ 5 points • 6% - 10% funding for Moderate-Income Household ~ 10 points • 1% - 5% funding for Moderate-Income Household ~ 15 points • 100% funding for Lower-Income Household ~ 20 points
20 City of Santa Barbara – HCD LHTF Program Request for Proposals

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Readiness:

Extent to which the City Applicant has completed a first phase funding process for multifamily rental projects and announced on its website the status of each project, including those projects that were approved to submit a final application upon award of Program Funds by the Department (Guidelines, Section 106(f)(3)).
• Website posting of pipeline projects with status ~ 5 points, PLUS EITHER of the next two (2) factors:
• Projects included posting of pipeline projects with first phase funding completed representing two (2) times the application request (e.g., if requesting $5 million, pipeline projects must total at least $10 million) ~ 5 points OR
15 Increasing the Supply of Lower-Income Rental Housing:

Extent to which the City Applicant commits to use Program Funds and Matching Funds for the new construction of rental housing developments affordable and restricted to households with average incomes of no more than 60 percent of AMI (Guidelines, Section 106(f)(4))
• ≤50% funding for 60% AMI or less ~ 0 points
• 51% - 74% funding for 60% AMI or less ~ 10 points
• 75% - 99% funding for 60% AMI or less ~ 15 points
• 100% funding for 60% AMI or less ~ 20 points
20 Community Need:

Percentage of Lower-Income Households paying more than 50 percent of their household income for rent or owner expenses, in jurisdictions to be served by the application, in comparison with jurisdictions to be served by other applications (Guidelines, Section 106(f)(5)) • 0% - 25% ~ 5 points
• 26% - 44% ~ 10 points
• 45% or higher ~ 15 points
Note: This section will be scored by HCD using CHAS data (Comprehensive Housing Affordability Strategy):
https://www.huduser.gov/portal/datasets/cp.html#2006-2016- datacollapse. 15 • Projects included public posting of pipeline projects with first phase funding completed representing three (3) times the application request (e.g., if requesting $5 million, pipeline projects must total at least $15 million) ~ 10 points
Note: applications requesting funds solely for single family activities will receive zero points in the category.

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Performance:

Extent to which City Applicants exceed the minimum 40 percent commitment threshold stated in Guidelines, Section 102(d) OR
New City Applicants (no previous LHTF award) who have committed 40 percent or more of local Matching Funds.
10 Total maximum points possible: 100
Tie Breaker
In the event of tied point scores, HCD shall rank tied applications based on the extent to which the application identifies specific multifamily rental projects for which the SBLHTF has issued Letters of Intent to developers for construction or permanent financing.

City’s Rating Criteria for Proposals to this RFP
Proposals submitted to the City in response to this RFP shall be scored competitively based upon the following criteria:

A. Site Control – 25 points
Points will be allocated as follows:
• Already have site control – 25 points
• Have purchase agreement for site – 15 points
• Negotiating purchase of site (Letter of Intent or Option to Purchase the Site) – 5 points
B. Project Readiness – 35 points
(1) Proposal is Complete with all Required Attachments and Adheres to the State’s Notice of Funding Availability Guidelines Necessary to Complete the Project (20 points).
(2) Compliance with the City’s General Plan, Zoning and Permit Readiness (15 points). Points will be awarded as follows:
• 10 points for demonstrated compliance with General Plan and Zoning of the existing site
• 5 points for demonstration of permits pulled or permit-ready projects.

C. Increasing the Supply of Lower-Income Rental Housing – 20 points max.

Points will be awarded to projects prioritizing housing for households with incomes ≤ 60% AMI.
• ≤50% funding for 60% AMI or less ~ 0 points
• 51% - 74% funding for 60% AMI or less ~ 10 points
• 75% - 99% funding for 60% AMI or less ~ 15 points
• 100% funding for 60% AMI or less ~ 20 points
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D. Other – 20 points max.

Past Performance (20 points). All proposals start with full points. Points will be deducted if a Proposal Applicant has negative findings on past awards with the City or with other state or federal agencies. For Proposal Applicants without previous experience with the City, demonstration of successful state/federal funding contracts, including references, will be required. The number of points deducted will be based upon the number and severity of negative findings, at the City’s discretion.

VII. LOCAL APPEAL PROCESS
For an appeal to be considered, the appeal must be made in writing, signed by the Proposal Applicant or the Proposal Applicant’s authorized representative, scanned, and submitted via email to the Housing and Human Services Division of the Community Development Department, at [email protected]. The City of Santa Barbara reserves the right to refuse to consider appeals that do not follow these procedures.

Appeals must be received by the Community Development Department no later than five (5) calendar days after the Proposal Applicant is notified of the City’s award recommendations.

Appeal Content – All appeals must include the following information:
• Name, address, and telephone number of the party appealing the decision. • Signature of the authorized representative of the appealing party. • Detailed and specific statement of the legal and/or factual grounds for the appeal. The Proposal Applicant must provide a detailed reference to the area or areas of the proposal that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a competitive advantage to a Proposal Applicant. • Description of the form of relief requested.

No Proposal Applicant shall have the right to appeal a decision relating to another Proposal Applicant’s proposal (e.g., eligibility, award).

The Housing and Human Services Division will review the appeal and provide a response within 5 calendar days of receipt. If the response is accepted, there is no further action required. If the Proposal Applicant is still not satisfied, the issue will be referred to the Director of the Community Development Department who will make a determination on the issue. This determination shall be final.

VIII. HCD APPROVAL
A. After review and selection of proposal(s) by the City Council, successful proposal(s) will be submitted in the City’s application to HCD for review and approval.

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Proposals selected by the City are not deemed fully approved until HCD approval is received.

B. Should HCD reject an application, the City may, at its discretion, appeal the decision, in accordance with section III.D of the NOFA.

C. After award of funds by HCD, HCD will enter into a Standard Agreement with the City. The Standard Agreement contains all the relevant state and federal requirements, as well as specific information about the award and the work to be performed.

A condition of an award will be that a Standard Agreement must be executed by the awardee within 30 days (contracting period) of the awardee’s receipt of the Standard Agreement(s). Failure to execute the Standard Agreement(s) within the Contracting Period may result in award cancellation. The Awardee(s) shall remain a party to the Standard Agreement for the entire term of the Standard Agreement; removal of the Awardee(s) shall be prohibited.

IX. STATE AND FEDERAL REQUIREMENTS
Climate Adaptation - Executive Order B-30-15 addressed the need for climate adaptation and ordered that:

1. All state agencies with jurisdiction over sources of greenhouse gas emissions shall implement measures, pursuant to statutory authority, to achieve reductions of greenhouse gas emissions to meet the 2030 and 2050 greenhouse gas emissions reductions targets.

2. State agencies shall take climate change into account in their planning and investment decisions and employ full life-cycle cost accounting to evaluate and compare infrastructure investments and alternatives.

3. State agencies planning and investments shall be guided by the following principles:
• Priority should be given to actions that both build climate preparedness and reduce greenhouse gas emissions;
• Where possible, flexible and adaptive approaches should be taken to prepare for uncertain climate impacts;
• Actions should protect the state's most vulnerable populations; and • Natural infrastructure solutions should be prioritized.

In response to the Governor’s Executive Order, the Department strongly encourages Awardees to implement the LHTF-funded project in a manner that reduces greenhouse gas emissions and adapts to climate change. In addition, Awardees must obtain specific information from local governments indicating the progress made in planning to adapt to climate change.

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X. OTHER STATE REQUIREMENTS
A. Parking
Recipients of Program funding shall examine the feasibility of shared parking agreements to replace new parking construction or limit the number of new parking spaces that will be constructed. These requirements do not apply to proposals located on land owned or leased by the state (Gov. Code, § 65863.1, subd. (j)). An examination of the feasibility of shared parking shall include, at a minimum, identification of parking facilities on contiguous properties or nearby properties that would not require users to cross a street and then consideration of the apparent availability of those facilities for shared parking (Gov. Code, § 65863.1, subd. (i)(3)). The examination of the feasibility of shared parking shall be submitted to the Department prior to the execution and approval of the Standard Agreement.

Tribal Entities are not required to examine the feasibility of shared parking for Projects located in Indian Country where an Indian tribe exercises jurisdiction.

B. Housing First practices
Housing First is an evidence-based model designed to permanently house an individual and make available optional supportive services to help them remain stably housed. Housing First means that housing is made available with very low barriers to entry and applicants are not rejected due to poor credit, financial history, lack of rental history, criminal convictions unrelated to tenancy, or behaviors that indicate a lack of housing readiness. Supportive services providers shall also utilize Housing First principles and offer services as needed and/or requested on a voluntary basis. Housing shall not be contingent upon participation in services.

Proposal Applicants will certify and document adherence to Housing First practices in the application, property management plan, and supportive services plan.

Adherence to Housing First practices shall be subject to periodic compliance monitoring.

C. Pet Friendly Housing Act of 2017
Housing funded through the LHTF Program is subject to the Pet Friendly Housing Act of 2017 (HSC Section 50466). Each Awardee is required to submit a signed and dated certification that residents of the LHTF Program-funded housing development will be authorized to own or otherwise maintain one or more common household pets.

D. Prevailing wage law requirements
LHTF Program Funds awarded under this NOFA are subject to state prevailing wage law, as set forth in Labor Code Section 1720 et seq., and require the payment of prevailing wages unless the project meets one of the exceptions of Labor Code, City of Santa Barbara – HCD LHTF Program Request for Proposals

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Section 1720 (c), as determined by the Department of Industrial Relations (DIR).

The DIR can be contacted via its website at:
https://www.dir.ca.gov/oprl/DPreWageDetermination.htm. Proposal Applicants are urged to seek professional advice as to how to comply with state prevailing wage law.

E. Accessibility and Non-discrimination
All projects or programs shall adhere to the accessibility requirements set forth in California Building Code, Chapter 11A and 11B and the Americans with Disabilities Act, Title II. In addition, projects or programs shall adhere to either the Uniform Federal Accessibility Standards, 24 Code of Federal Regulations (CFR) Part 8, or U.S. Department of Housing and Urban Development’s (HUD) modified version of the 2010 American Disabilities Act Standards for Accessible Design (Alternative 2010 ADAS), HUD-2014-0042-0001, 79 F.R. 29671 (5/27/14) (commonly referred to as "the Alternative Standards" or "HUD Deeming Memo"). Accessible units shall, to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout the project and be available in a sufficient range of sizes and amenities consistent with 24 CFR, Section 8.26.

Recipients shall adopt a written non-discrimination policy requiring that no person shall, on the grounds of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, age, medical condition, genetic information, citizenship, primary language, immigration status (except where explicitly prohibited by federal law), arbitrary characteristics, and all other classes of individuals protected from discrimination under federal or state fair housing laws, individuals perceived to be a member of any of the preceding classes, or any individual or person associated with any of the preceding classes be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with Program funds made available pursuant to this NOFA.

Recipients shall comply with the requirements contained in the Americans with Disabilities Act, the Fair Housing Amendments Act, the California Fair Employment and Housing Act, the Unruh Act, Government Code Section 11135, Section 504 of the Rehabilitation Act, and regulations promulgated pursuant to those statutes, including 24 CFR Part 100, 24 CFR Part 8, and 28 CFR Part 35, in all of the Sponsor's activities.

F. Disclosure of proposal and application
Information provided in the proposal and application will become a public record available for review by the public, pursuant to the California Public Records Act (Chapter 1473, Statutes of 1968). As such, any materials provided will be City of Santa Barbara – HCD LHTF Program Request for Proposals

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disclosable to any person making a request under this Act. The City and HCD cautions Proposal Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, and home addresses. By providing this information to the City and HCD, the Proposal Applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request.

XI. INSURANCE REQUIREMENTS
All recipients of City of Santa Barbara SBLHTF funds will be required to purchase and maintain at their sole cost and expense the following minimum coverage:

A. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits of no less than One Million Dollars ($1,000,000) per occurrence. If a general aggregate limit applies, either the aggregate limit shall apply separately to this project or location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

B. Property insurance: Insurance coverage against loss of or damage to the Property or equipment and fixtures thereon resulting from fire, lightning, vandalism, malicious mischief, or those risks ordinarily defined as 'all risk coverage', at full replacement cost with no coinsurance penalty provision.

The policy shall include business interruption coverage, with adequate limits to cover the term of this agreement.

In addition thereto, the insurance policy shall provide coverage for loss or damage resulting from flood, surface water, waves, tidal water, or tidal waves, overflow of streams or other bodies of water, or spray from any of the foregoing, all whether driven by wind or not and including, but not limited to, water which backs up through sewers or drains or water below the ground which exerts pressure on or flows, seeps or leaks through sidewalks, driveways, foundations, walls, basement or other floors or through doors, windows or any other openings in such sidewalks, driveways, foundations, walls or floors. Borrower's obligation to obtain flood, wave, tidal wave and earthquake casualty coverage shall be conditioned upon such coverage being readily available at commercially reasonable rates for commercially reasonable amounts of coverage.

Such insurance shall be in amount equal to 100% of the full replacement cost of Improvements on the Property, other related equipment and fixtures. The insurance coverage shall be placed and maintained with one insurance company or companies which is or are acceptable to City. Such insurance shall be modified periodically to ensure that, at all times, the limits of said policies are large enough to provide coverage for one hundred percent (100%) of the replacement costs of all structures, equipment, and improvements on the Property.

City may require that Borrower submit to it at the commencement of each third calendar year during the term hereof, an appraisal of the replacement value of the City of Santa Barbara – HCD LHTF Program Request for Proposals

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Improvements on the Property so that City can determine whether the insurance coverage is sufficient. Certificates of insurance evidencing such insurance coverage as modified shall be promptly filed with City. All such insurance policies, along with their endorsements, shall name City and Borrower as named insured, and Loss Payee.

If the Borrower maintains higher coverage limits than the amounts shown above, then the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Borrower. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Self-Insured Retentions
Self-insured retentions (SIRs) must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the SIR may be satisfied by either the named insured or City. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties.

The City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any SIR provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.

OTHER INSURANCE PROVISIONS
Each insurance policy shall contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City of Santa Barbara, its officers, officials, employees, volunteers, and agents, shall be covered as additional insureds on the Commercial General Liability policy with respect to liability arising out of work or operations performed by or on behalf of the Borrower including materials, parts, or equipment furnished in connection with such work or operations. Additional Insured coverage shall be provided in the form of an endorsement to the Lessee’s insurance (at least as broad as Insurance Services Office Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later edition is used). A copy of the endorsement evidencing that the City of Santa Barbara has been added as an additional insured on the policy, must be attached to the certificate of insurance.

Primary Coverage
For any claims related to this contract, the Lessee’s insurance coverage shall be primary and non-contributory at least as broad as Insurance Services Office Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance City of Santa Barbara – HCD LHTF Program Request for Proposals

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or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Lessee’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.

Legal Liability Coverage
The property insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the leased property.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be cancelled or subject to reduction without written notice provided to the City Clerk, addressed to P.O.

Box 1990, Santa Barbara, California 93102-1990.

Waiver of Subrogation
Borrower hereby grants to the City a waiver of any right to subrogation which any insurer of Borrower may acquire against the City by virtue of the payment of any loss under such insurance. Borrower agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Lessee, its employees, agents, and subcontractors.

Umbrella or Excess Policy
The Borrower may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Lessee’s primary and excess liability policies are exhausted.

Acceptability of Insurers
All insurance coverage shall be placed with insurers authorized to conduct business in the State of California with a current AM Best’s rating of no less than A: VII. All other insurers require prior approval of the City.

City of Santa Barbara – HCD LHTF Program Request for Proposals

Page 17 of 18 ends

Verification of Coverage
Borrower shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Lessee’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Borrower shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Borrower shall ensure that the City is an additional insured on insurance required from subcontractors.

Coverage Limits Specifications
Approval of the insurance by City or acceptance of the certificate of insurance by City shall not relieve or decrease the extent to which the Borrower may be held responsible for payment of damages resulting from Lessee's services or operation pursuant to this Agreement, nor shall it be deemed a waiver of City's rights to insurance coverage hereunder.

If, for any reason, Borrower fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract.

City, at its sole option, may terminate this Agreement and obtain damages from the Borrower resulting from said breach. Alternately, City may purchase such required insurance coverage, and without further notice to Lessee, City may deduct from sums due to Borrower any premium costs advanced by City for such insurance.

Use of Insurance Proceeds
Upon the occurrence of any loss, the proceeds of any insurance shall be paid to a financial institution or trust company with an office in Santa Barbara County designated by Borrower and approved by City (the 'Insurance Trustee'). In the event of such loss, to the extent of available insurance proceeds received by Borrower, Borrower shall be obligated to rebuild or replace the destroyed or damaged Improvements, equipment or fixtures in the same or better condition as they existed prior to such loss. All sums deposited with the Insurance Trustee shall be held in trust by the Insurance Trustee with the following powers and duties:
1) The Insurance Trustee shall pay the contractor retained by Borrower for the restoration in installments as the construction progresses. A retention fund of ten percent (10%) of the total contract price shall be established. The contractor shall be City of Santa Barbara – HCD LHTF Program Request for Proposals

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paid the retained amount upon the completion of the restoration, acceptance of the work by the Borrower and City, payment of all costs, expiration of all applicable lien periods and proof that the Premises is free of all mechanics' liens and lienable claims. 2) Payments to the contractor shall be made on presentation of certificates or vouchers from the architect or engineer retained by Borrower showing the amount due. If the Insurance Trustee, in the Insurance Trustee's reasonable discretion, determines that the certificates or vouchers are being improperly approved by the architect or engineer retained by Borrower, the Insurance Trustee shall have the right to appoint an architect or engineer to supervise the construction and to make payments to the contractor on certificates or vouchers approved by the architect or engineer retained by the Insurance Trustee. The reasonable expenses and charges of the architect or engineer retained by the Insurance Trustee shall be paid by the Insurance Trustee out of the trust fund.
3) If the sums held by the Insurance Trustee are insufficient to pay the actual cost of the repair, restoration or replacement, Borrower shall have the right but not the obligation to deposit the amount of the deficiency with the Insurance Trustee within thirty (30) days after request by the Insurance Trustee indicating the amount of the deficiency. 4) Any undistributed funds following compliance with the provisions of this section shall be delivered to Borrower.
5) All actual costs of the Insurance Trustee shall first be paid from the insurance proceeds, then by Borrower. If the Insurance Trustee resigns or for any reason is unable or unwilling to act or continue to act in accordance with these provisions, Borrower shall substitute a new trustee for the designated trustee. The new trustee must be a financial institution or trust company with an office in Santa Barbara County approved by City.
6) Both Parties shall promptly execute all documents and perform all acts reasonably required by the Insurance Trustee in order for the Insurance Trustee to perform its obligations under this section.

XII. RESERVATION OF RIGHTS
The City of Santa Barbara reserves the right, at its sole discretion, to award all, a portion, or none of the available SBLHTF funding, and may reject any and all proposals based on the quality and/or merits of the proposals, or when it is determined to be in the public interest to do so. Furthermore, the City may extend deadlines and timeframes, as needed.

The City of Santa Barbara reserves the right to substantiate any Proposal Applicant’s qualifications, financial information, capability to perform, availability, and past development performance.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF STATE FINANCIAL ASSISTANCE
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
7/9/2024
MEMORANDUM FOR: ALL POTENTIAL APPLICANTS
FROM: Jennifer Seeger, Deputy Director
Division of State Financial Assistance
SUBJECT: 2024 Local Housing Trust Fund Program
Notice of Funding Availability
The California Department of Housing and Community Development (HCD) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $53 million in funds for the Local Housing Trust Fund (LHTF) Program. This funding provides Matching Grants to Local Housing Trust Funds established by cities and counties, Native American Tribes and incorporated 501(c)(3) nonprofit organizations.

Fifteen percent of the funds made available by this NOFA shall be reserved for Local or Regional Housing Trust Funds meeting the definition of New Local Housing Trust Fund.

In the event that there are insufficient applications from New Local Housing Trust Funds that pass threshold, the funds shall be used for applications from Existing Local Housing Trust Funds.

Application materials must be submitted electronically through the Department’s website. Requirements for uploading the Application Workbook and required supporting documentation, including naming conventions, are described in the application instructions available at https://www.hcd.ca.gov/grants-and-funding/programsactive/local-housing-trust-fund. The Department no longer requires a hardcopy submittal of the Application Workbooks or supplemental documentation.

The application portal is open beginning on August 20, 2024 through September 17, 2024. The portal will close at 4 p.m. on September 17, 2024. Please note that the on-line support and technical assistance closes at 3:30 p.m. Pacific Standard Time on September 17, 2024.

To receive information on workshops and other updates, please subscribe to the LHTF Program listserv. If you have any further questions, please contact [email protected].

Attachment
Attachment 6
Local Housing Trust Fund Program
2024 Notice of Funding Availability
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 651 Bannon Street, Sacramento, CA 95811
Telephone: (916) 263-2771
Website: http://www.hcd.ca.gov
LHTF email: [email protected]
7/9/2024
Table of Contents
I. Overview ................................................................................................................2 A. Notice of Funding Availability ................................................................................... 2 B. Timeline.................................................................................................................... 2 C. Authorizing Legislation and Regulations (Regulatory Authority)............................... 2 II. Program requirements..........................................................................................3 A. Eligible Applicants .................................................................................................... 3 B. Eligible activities....................................................................................................... 3 C. Funding Limits.......................................................................................................... 4 D. Matching funds requirements ................................................................................... 4 E. Ongoing Revenues .................................................................................................. 5 G. Underwriting, administration, and reporting requirements........................................ 5 H. Application requirements.......................................................................................... 6 I. State and federal requirements .............................................................................. 10 III. Application, submission, workshops, and appeals..........................................10 A. Application forms.................................................................................................... 10 B. Application submission process ............................................................................. 11 C. Application workshops............................................................................................ 11 D. Disclosure of application ........................................................................................ 12 IV. Award announcements and contracts...............................................................13 A. Award Announcements .......................................................................................... 13 B. Contracts................................................................................................................ 13 V. Other state requirements....................................................................................13 A. Housing First practices........................................................................................... 13 B. Pet Friendly Housing Act of 2017........................................................................... 14 C. Prevailing wage law requirements.......................................................................... 14 D. Accessibility and Non-discrimination ...................................................................... 14 VI. Other terms and conditions................................................................................15 A. Right to modify or suspend..................................................................................... 15 B. Conflicts ................................................................................................................. 15 California Department of Housing and Community Development Page 2 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability I. Overview
A. Notice of Funding Availability
The California Department of Housing and Community Development (Department) is announcing the availability of approximately $53 million in funding for the Local Housing Trust Fund (LHTF) Program. Funding for this Notice of Funding Availability (NOFA) is provided by the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1), adopted by voters on November 6, 2018.

Program Funds awarded under this NOFA shall be used to provide construction loans and/or permanent financing loans to pay for construction or rehabilitation of Affordable rental housing projects, Emergency Shelters, Permanent Supportive Housing, Transitional Housing and Affordable homebuyer/homeowner projects.

Program Funds may also be used to assist income-eligible first-time homebuyers to purchase homes and to rehabilitate houses owned by income-eligible occupants, as well as to construct, convert, reconstruct, rehabilitate and/or repair Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs).

B. Timeline
NOFA Release July 09, 2024
Application Due Date September 17, 2024
Award Announcements December 2024
C. Authorizing Legislation and Regulations (Regulatory Authority) Health and Safety Code (HSC) Section 50842.2 established the LHTF Matching Grant Program.

HSC Section 50843.5(a) authorized the Department to provide matching funds to Local Housing Trust Funds established by cities and counties, Native American Tribes, and/or incorporated 501(c)(3) nonprofit organizations.

Senate Bill 3 (SB 3) (Chapter 365, Statutes of 2017) authorized the Veterans and Affordable Housing Bond Act of 2018 and authorized the issuance of bonds in the amount of $4 billion under the State General Obligation Bond Law. Specifically, SB 3 allows for the allocation of $300 million of the Bond proceeds for the LHTF Program.

SB 3 also allowed the Department to adopt Guidelines instead of regulations for the LHTF Program, establishing requirements for administration of the Program. The Department adopted Guidelines in April 2020.

Applications submitted under this NOFA are subject to the Guidelines, all applicable statutory requirements, and this NOFA. All section references in this NOFA refer to the Guidelines unless otherwise noted. The Guidelines and NOFA are available on the Department’s website.

California Department of Housing and Community Development Page 3 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability Capitalized terms not otherwise defined in this NOFA shall have the meanings set forth in Guidelines Section 101.

II. Program requirements
The following is provided as a summary for the allocation of the LHTF Program funds to Local Housing Trust Funds. This is not to be considered a complete representation of the eligibility, threshold, or other requirements, terms, and conditions.

A. Eligible Applicants
An applicant must be:

1. A city, county, or city and county that has created, funded, and operated an Existing Local Housing Trust Fund or that has created and funded a New Local Housing Trust Fund in compliance with Guidelines Sections 102(a)(1), 102(a)(2), and 102(a)(3).

A Local Housing Trust Fund or Regional Housing Trust Fund that was created, funded, and operated by a combination of two or more cities or counties must agree in its application to utilize Program funds only for Eligible Projects located in cities or counties that at the time of application have met the requirements outlined in Guidelines Section 102(a)(4).

2. A charitable nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code that is an Existing Local Housing Trust Fund or a New Local Housing Trust Fund and which complies with Guidelines Section 102(b)(1), 102(b)(2) and 102(b)(3).

3. A Native American Tribe, or sect of Tribes, that has created, funded, and operated an Existing Local Housing Trust Fund, or that has created and funded a new Local Housing Trust Fund in compliance with Guidelines Section 102(c)(1), 102(c)(2), and 102(c)(3).

B. Eligible activities
PLEASE NOTE: LHTF is not a reimbursement Program.

Pursuant to Guidelines, Section 105, the LHTF funds shall be allocated in compliance with all of the following:

1. To provide construction loans and/or permanent financing loans at simple interest rates of no higher than 3 percent per annum for payment of predevelopment costs, acquisition, construction, or rehabilitation associated with Affordable rental housing projects, Emergency Shelters, Transitional Housing, Permanent Supportive Housing, homebuyer/homeowner projects to purchase for-sale housing units or to rehabilitate an owner-occupied dwelling. Funds may also be used for the construction, conversion, repair, and rehabilitation of Accessory Dwelling Units or Junior Accessory Dwelling Units.

California Department of Housing and Community Development Page 4 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability

2. Administrative expenses may not exceed 5 percent of Program Funds and Matching Funds.

3. A minimum of 30 percent of Program Funds and Matching Funds, after deducting administrative expense, shall be expended on assistance to Extremely LowIncome Households. To comply with this requirement, dwelling units or shelter beds must be Affordable to and restricted for Extremely Low-Income Households with household income of no more than 30 percent of Area Median Income (AMI).

4. No more than 20 percent of the Program Funds and Matching Funds, after deducting administrative expense, shall be expended on assistance to ModerateIncome Households. To comply with this requirement, dwelling units must be Affordable to and restricted for Moderate-Income Households with household income of no more than 120 percent of AMI.

5. The remaining Program Funds and Matching Funds shall be expended on assistance to Lower-Income Households. To comply with this requirement, dwelling units must be Affordable to and restricted for Lower-Income Households with household income of no more than 80 percent AMI.

C. Funding Limits
Pursuant to Guidelines, Section 103, the funding minimums and maximums apply as detailed below.

The minimum application request by an Applicant that is an Existing Local Housing Trust Fund shall be $1 million.

The minimum application request by an Applicant that is a New Local Housing Trust Fund, but which is not a Regional Housing Trust Fund, shall be $500,000.

The minimum application request by an Applicant that is a New Local Housing Trust Fund, which is also a Regional Housing Trust Fund, and which is utilizing Permanent Local Housing Allocation Funds as Matching Funds, shall be $750,000.

The maximum application request for all Applicants shall be $5 million.

Fifteen percent of the funds made available by this NOFA shall be reserved for Local or Regional Housing Trust Funds meeting the definition of “new Local Housing Trust Fund.” In the event there are insufficient applications from new Local Housing Trust Funds that pass threshold, the funds shall be used for applications from existing Local Housing Trust Funds.

D. Matching funds requirements

1. All Program Funds provided pursuant to this section shall be matched on a dollarfor-dollar basis with dedicated sources of funding, such as taxes, fees, or loan repayments, or public or private contributions by the Applicant. Lines of credit and loans received by the Local Housing Trust Fund are not eligible sources of Matching Funds.

California Department of Housing and Community Development Page 5 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability

2. An application for Program Funds shall not be considered unless the application contains required documentation of the deposit in the Local Housing Trust Fund account of the local Matching Funds, and the identity of the source of Matching Funds, or evidence of a Legally Binding Commitment to deposit the required Matching Funds, and the identity of the source of Matching Funds.

3. Funds restricted for housing use by state or federal law (such as funds from the Home Investment Partnerships Program, the Community Development Block Grant Program, redevelopment agency low- and moderate-income housing fund set-aside funds, or state housing programs administered by the Department) shall not be considered Matching Funds. However, Permanent Local Housing Allocation program funds may be considered Matching Funds for Regional Housing Trust Funds.

4. Matching Funds shall be On Deposit prior to disbursement of Program Funds.

5. Program Funds must be utilized on a dollar-for-dollar basis for the same Eligible Project for which local Matching Funds are used, as required by HSC Section 50843.5(c).

E. Ongoing Revenues

1. For an Existing Housing Trust Fund, a public or private source, or sources, of Ongoing Revenues totaling at least an average of $100,000 per year for three years after the date of the Program award is required.

2. For a New Housing Trust Fund, public or private sources of Ongoing Revenues sufficient to pay for the Trust Fund’s operating costs for a minimum of five years after the date of the Program award is required.

3. Ongoing Revenues are required to be derived from dedicated sources of consistent funding, such as taxes, fees, repayments of loans made by the Trust Fund, or regular annual public or private contributions. Ongoing Revenues may not include one-time donations, such as land donations or large bequests, and may not include loans or lines of credit.

F. Program administrative costs
Pursuant to Guidelines, Section 105(b), a Local Housing Trust Fund that receives an award under this NOFA shall not use more than 5 percent of the allocation and not more than 5 percent of Matching Funds for administrative costs related to the execution of eligible activities.

G. Underwriting, administration, and reporting requirements California Department of Housing and Community Development Page 6 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability A grantee of the LHTF Program must comply with the underwriting and loan requirements of Guidelines, Section 107, the administrative requirements of Sections 108 and 109 (b), and the reporting requirements of Section 112.

H. Application requirements

1. Threshold
Only complete applications on forms made available by the Department submitted on or before the application deadline stated in this NOFA shall be considered for funding. Applications must meet the requirements set forth in Guidelines, Sections 106(d) and 106(e).

An application must have all of the information requested and provide adequate documentation and information for the Department to determine the Local Housing Trust Fund's eligibility for funding pursuant to HSC, Section 50843.5(b), and the Guidelines, and the eligibility of the Project pursuant to HSC, Section 50843.5(d), and the Guidelines.

HSC, Section 50843.5(b) requires that Housing Trusts eligible for funding shall have the following characteristics:
a. Utilization of a public or joint public and private fund established by legislation, ordinance, resolution, or a public-private partnership to receive specific revenue to address local housing needs.
b. Receipt of ongoing revenues from dedicated sources of funding such as taxes, fees, loan repayments, or public or private contributions.

Previously awarded applicants must have committed at least 40 percent of the previous award(s) to be eligible to submit an application for this NOFA.

Previously awarded applicants must have submitted the most recently required LHTF Annual Report in order to be eligible to submit an application for this NOFA.

In addition, the following requirements must be met and demonstrated in each application:
a. City or County Applicants must have a housing element that was adopted by the Applicant’s governing body and subsequently determined by the Department to be in compliance with state Housing Element Law by the time awards are announced. If an applicant is determined to be out of compliance at the time awards are announced, it will be ineligible to receive funding and the next highest scoring eligible application may be funded in its place. b. City or County Applicants must have submitted to the Department the Annual Progress Report on the housing element for the 2023 Calendar Year by the application deadline date.

California Department of Housing and Community Development Page 7 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability c. Nonprofit Charitable Organization Applicants shall in their application agree to utilize Program Funds only for Eligible Projects located in cities or counties that have, at the time of award, an adopted housing element determined by the Department to be in compliance with state Housing Element Law, and which have submitted to the Department the Annual Progress Report on the housing element for the 2023 Calendar Year by the application deadline date. d. A Native American Tribe or Tribes shall, in their application, agree to utilize Program Funds only for Eligible Projects either (A) located on Native American Lands or (B) in cities and counties that have, at the time of award, an adopted housing element determined by the Department to be in compliance with state Housing Element Law and which shall have submitted to the Department the Annual Progress Report on the housing element for the 2023 Calendar Year by the application deadline date.
e. Only applications containing the required documentation of the deposit in the Local Housing Trust Fund of the local Matching Funds, and that identify the source(s) of Matching Funds or provide evidence of a Legally Binding Commitment to deposit the required Matching Funds, and the identity of the source(s) of Matching Funds, shall be considered eligible. f. Only applications including the required application resolution shall be considered eligible. This includes “Attachment 1” to be completed as part of the resolution prior to approval by the governing body. The resolution and “Attachment 1” can be found on the LHTF website.
g. The Applicant shall submit documentation of its loan guidelines and underwriting standards and procedures for review by the Department as part of its Program application. Below are the factors that must be addressed in underwriting standards that Applicants must submit to ensure project feasibility:
• Required debt coverage ratio
• Minimum projected operating expenses
• Required replacement reserve
• Required capitalized operating reserve
• Requirements for positive cash flow
• Required projected vacancy rate
• Requirements for construction contingency if construction financing is being provided with LHTF funds
• Requirements for senior lender loan types and junior lender loan types • Simple interest rate no higher than 3 percent per annum • Leasehold security requirements

2. Rating and Ranking
California Department of Housing and Community Development Page 8 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability In the event that the amount of funding requested in complete and eligible applications exceeds the funds available, applications shall be evaluated and funded using the criteria outlined below.
a. The Department’s Negative Points Policy (Administrative Notice Number 2022- 01) dated March 30, 2022 and published on the Department’s website, is hereby incorporated by this reference to this LHTF NOFA as if set forth in full herein, and shall apply with equal force as all other provisions set forth herein.

If the Applicant is subject to a negative points assessment based on the criteria outlined in the Department’s Negative Points Policy, or is determined to be ineligible for funding, the Department shall notify the Applicant in writing in the initial point score letter.

Rating Criteria
Max
Pts.

Non-Residential Matching Funds:

Extent to which the Applicant provides Matching Funds from sources other than residential Local Impact Fees or In Lieu Fees (Guidelines Section, 106(f)(1)) • 0% – 25% from other sources ~ 5 points
• 26% - 50% from other sources ~ 10 points
• 51% or more from other sources ~ 15 points
15 Deeper Income Targeting:

Extent to which the Applicant commits to expend less than 20 percent of Program Funds and Matching Funds to serve Moderate-Income Households (Guidelines, Section 106(f)(2)
• 11% - 18% funding for Moderate-Income Household ~ 5 points • 6% - 10% funding for Moderate-Income Household ~ 10 points • 1% - 5% funding for Moderate-Income Household ~ 15 points • 100% funding for Lower-Income Household ~ 20 points
20 Readiness:

Extent to which the Applicant has completed a first phase funding process for multifamily rental projects and announced on its website the status of each project, including those projects that were approved to submit a final application upon award of Program Funds by the Department (Guidelines, Section 106(f)(3)).
• Website posting of pipeline projects with status ~ 5 points, PLUS EITHER of the next two (2) factors:
 Projects included posting of pipeline projects with first phase funding completed representing two (2) times the application request (e.g., if requesting $5 million, pipeline projects must total at least $10 million) ~ 5 points OR
15 California Department of Housing and Community Development Page 9 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability  Projects included public posting of pipeline projects with first phase funding completed representing three (3) times the application request (e.g., if requesting $5 million, pipeline projects must total at least $15 million) ~ 10 points
Note: applications requesting funds solely for single family activities will receive zero points in the category.

Increasing the Supply of Lower-Income Rental Housing:

Extent to which the Applicant commits to use Program Funds and Matching Funds for the new construction of rental housing developments affordable and restricted to households with average incomes of no more than 60 percent of AMI (Guidelines, Section 106(f)(4)) • ≤50% funding for 60% AMI or less ~ 0 points
• 51% - 74% funding for 60% AMI or less ~ 10 points
• 75% - 99% funding for 60% AMI or less ~ 15 points
• 100% funding for 60% AMI or less ~ 20 points
20 Community Need:

Applicants which are a Regional Housing Trust Fund meeting the description herein get all points in this category. A Regional Housing Trust Fund, for the purposes of these points, is one that includes six jurisdictions (in counties with total populations of 250,000 or less), or eight jurisdictions (in counties with more than 250,000), or that meet the minimum threshold (two jurisdictions with more than one million people, three jurisdictions in counties with total populations of 250,000 or less, or four jurisdictions in counties with more than 250,000, and include more than 66 percent of the population of the county or counties (Guidelines, Section 106(f)(6)). 5 California Department of Housing and Community Development Page 10 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability Performance:

Extent to which Applicants exceed the minimum 40 percent commitment threshold stated in Guidelines, Section 102(d) OR
New Applicants (no previous LHTF award) who have committed 40 percent or more of local Matching Funds.
10 Total maximum points possible: 100

3. Tie Breaker
In the event of tied point scores, the Department shall rank tied applications based on the extent to which the application identifies specific multifamily rental projects for which the Trust Fund has issued Letters of Intent to developers for construction or permanent financing.

I. State and federal requirements
Climate Adaptation - Executive Order B-30-15 addressed the need for climate adaptation and ordered that:

III. Application, submission, workshops, and appeals
A. Application forms
Applications must be on the Department’s forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format, not a PDF document.

Applications that do not meet the Program requirements outlined in this NOFA will not California Department of Housing and Community Development Page 11 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability be eligible for funding. Application forms are available for download on the LHTF webpage.

B. Application submission process
Application materials must be submitted electronically to the Department’s website. Requirements for uploading the Application Workbook and required supporting documentation, including naming conventions, are described in the application instructions available at https://www.hcd.ca.gov/grants-andfunding/programs-active/local-housing-trust-fund. The application instructions and submittal portal will be available beginning August 20, 2024. The Department no longer requires a hardcopy submittal of the Application Workbooks or supplemental documentation.

Applicants must upload all application materials to the Department’s website.

The application portal is open beginning on August 20, 2024, through 4:00 p.m. Pacific Standard Time on September 17, 2024. Please note that the on-line support and technical assistance closes at 3:30 p.m. Pacific Standard Time on September 17, 2024.

Personal deliveries will not be accepted. No facsimiles, incomplete applications, application revisions, or walk-in application packages will be accepted. Applications that do not meet the filing deadline requirements will not be eligible for funding.

C. Application workshops
The Department will conduct application webinars for the LHTF Program application submittal process. Applicants are strongly encouraged to attend an application workshop to gain information critical for preparing the application. LHTF Program workshop details and related Program information will be posted on the LHTF webpage.

D. Appeals

1. Basis of Appeals
a. Applicants may appeal HCD’s written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an award (including point scoring and tie breaker).
b. At the sole discretion of the Department, the Department’s written determination may include a request for clarifying and/or corrective information. For purposes of this section, “clarifying information” includes information and/or documentation that resolves ambiguities in any application materials that will inform the Department’s threshold, scoring and feasibility determinations.
c. No Applicant shall have the right to appeal a decision of HCD relating to another Applicant’s application (e.g., eligibility, award).

California Department of Housing and Community Development Page 12 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability d. Any request to appeal HCD’s decision regarding an application shall be reviewed for compliance with the Guidelines and this NOFA. All decisions rendered shall be made by the Program Manager or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of HCD.
e. The appeal process provided herein applies solely to decisions of HCD made pursuant to this NOFA.

2. Appeal Process and Deadlines
a. Process: To file an appeal, Applicants must submit to HCD, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a competitive advantage to an Applicant. Once the written appeal is submitted to HCD, no further information or materials will be accepted or considered thereafter. Appeals are to be submitted to HCD at [email protected] according to the deadline set forth in HCD review letters.
b. Filing Deadline: Appeals must be received by HCD no later than five (5) business days from the date of HCD’s threshold review, or initial score letters, as applicable, representing HCD’s decision made in response to the application.

D. Disclosure of application
Information provided in the application will become a public record available for review by the public, pursuant to the California Public Records Act (Chapter 1473, Statutes of 1968). As such, any materials provided will be disclosable to any person making a request under this Act. The Department cautions applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, and home addresses. By providing this information to the Department, the applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request.

California Department of Housing and Community Development Page 13 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability IV. Award announcements and contracts
A. Award Announcements
Awards will be announced in August 2024. Awards will be posted on the LHTF Program website.

B. Contracts
Successful Applicants (Awardee(s)) will enter into a Standard Agreement with the Department. The Standard Agreement contains all the relevant state and federal requirements, as well as specific information about the award and the work to be performed.

V. Other state requirements
A. Parking
Recipients of Program funding shall examine the feasibility of shared parking agreements to replace new parking construction or limit the number of new parking spaces that will be constructed. These requirements do not apply to proposals located on land owned or leased by the state (Gov. Code, § 65863.1, subd. (j)). An examination of the feasibility of shared parking shall include, at a minimum, identification of parking facilities on contiguous properties or nearby properties that would not require users to cross a street and then consideration of the apparent availability of those facilities for shared parking (Gov. Code, § 65863.1, subd. (i)(3)).

The examination of the feasibility of shared parking shall be submitted to the Department prior to the execution and approval of the Standard Agreement. Tribal Entities are not required to examine the feasibility of shared parking for Projects located in Indian Country where an Indian tribe exercises jurisdiction.

Housing shall not be contingent upon participation in services. Applicants will certify and document adherence to Housing First practices in the application, property management plan, and supportive services plan. Adherence to Housing First practices shall be subject to periodic compliance monitoring.

California Department of Housing and Community Development Page 14 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability C. Pet Friendly Housing Act of 2017
Housing funded through the LHTF Program is subject to the Pet Friendly Housing Act of 2017 (HSC Section 50466). Each Awardee is required to submit a signed and dated certification that residents of the LHTF Program-funded housing development will be authorized to own or otherwise maintain one or more common household pets.

D. Prevailing wage law requirements
LHTF Program Funds awarded under this NOFA are subject to state prevailing wage law, as set forth in Labor Code Section 1720 et seq., and require the payment of prevailing wages unless the project meets one of the exceptions of Labor Code, Section 1720 (c), as determined by the Department of Industrial Relations (DIR).

The DIR can be contacted via its website at
https://www.dir.ca.gov/oprl/DPreWageDetermination.htm. Applicants are urged to seek professional advice as to how to comply with state prevailing wage law.

California Department of Housing and Community Development Page 15 of 15 Local Housing Trust Fund Program - 2024 Notice of Funding Availability VI. Other terms and conditions
A. Right to modify or suspend
The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website.

You may subscribe to the Department’s email list.

B. Conflicts
In the event of any conflict between the terms of this NOFA and either applicable state or federal law or regulation, the terms of the applicable state or federal law or regulation shall control. Applicants are deemed to have fully read and understand all applicable state and federal laws, regulations, and guidelines pertaining to the LHTF Program, and understand and agree that the Department shall not be responsible for any errors or omissions in the preparation of this NOFA.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 10, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Employee Recognition – Service Award Pins
RECOMMENDATION:

That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through September 30, 2024.

DISCUSSION:

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

Attached is a list of those employees who will be awarded pins for their service through September 30, 2024.

ATTACHMENT: September 2024 Service Awards
PREPARED BY: Talhia Dorado, Administrative Specialist
SUBMITTED BY: Kelly McAdoo, City Administrator
APPROVED BY: City Administrator's Office
Agenda Item No. 1
File Code No. 120.04

ATTACHMENT
September 2024 SERVICE AWARDS
September 10, 2024 Council Meeting
5 Years
Scott Mattchen, Water Distribution Operator Technician II, Public Works Department 10 Years
Richard Carvalho, Information Technology Supervisor, Information Technology Department Eric Goodall, Supervising Engineer, Public Works Department 25 Years
Jeffrey Burns, Fire Engineer, Fire Department
Kell Hardin, Fire Captain, Fire Department
Kevin Hokom, Fire Captain, Fire Department
Jose Delgado, Water Distribution Chief Operator, Public Works Department Joaquin Ortega, Senior Treatment Plant Technician, Public Works Department 08/20/2024 Santa Barbara City Council Minutes Page 1 of 3

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

SPECIAL MEETING
AUGUST 20, 2024
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 10:30 a.m.

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Alejandra Gutierrez (10:49 a.m.), Oscar Gutierrez (10:39 a.m.), Meagan Harmon, Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: None.

Staff present: City Administrator Kelly McAdoo, Assistant City Attorney Tava Ostrenger, Deputy City Clerk Norma Welche.

PUBLIC COMMENT ON ITEMS LISTED ON THE AGENDA
No one wished to speak.

RECESS
Mayor Rowse recessed to closed session at 10:31 a.m. and stated that no reportable action is anticipated.

Agenda Item No. 2
File Code No. 000.00
08/20/2024 Santa Barbara City Council Minutes Page 2 of 3

CLOSED SESSIONS

1. Subject: Conference with City Attorney – Existing Litigation – Gov. Code §54956.9(d)(1) (160.03)
Recommendation: That Council hold a closed session to consider pending litigation pursuant to subsection (d)(1) of section 54956.9 of the Government Code and take appropriate action as needed.

The pending litigation is Grand Santa Barbara LLC v. City of Santa Barbara, et al., SBSC Case No. 24CV03870.

Scheduling: Duration 15 mins; anytime
Report: None anticipated
Document:
- August 20, 2024, report from the City Attorney.

Time:
- 10:31 a.m. – 10:55 a.m.

Report:

No report made.

2. Subject: Conference with Real Property Negotiators (330.03) Recommendation: That Council hold a closed session pursuant to Government Code Section 54956.8 to discuss the proposal of price and terms of payment for a lease of the real property located at 916, 918, and 920 State Street.

Real Property: 916, 918, and 920 State Street (APN 039-322-052) City Negotiators: Sarah J. Knecht, City Attorney; John S. Doimas, Assistant City Attorney; Heather Minter, Deputy City Attorney-Lessor
Negotiating Party: David Corwin; Metropolitan Theatres Corporation - Lessee Under Negotiation: Price and terms of lease agreement
Scheduling: Duration, 15 mins; anytime
Report: None anticipated
08/20/2024 Santa Barbara City Council Minutes Page 3 of 3

2. Subject: Conference with Real Property Negotiators (330.03) (CONT’D) Document:
- August 20, 2024, report from the City Attorney.

Time:
- 10:56 a.m. – 11:13 a.m.

Report:

No report made.

ADJOURNMENT
Mayor Rowse adjourned the meeting at 11:13 a.m.

Approved and adopted by the City Council of the City of Santa Barbara on September 10, 2024.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
08/27/2024 Santa Barbara City Council Minutes Page 1 of 3

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

SPECIAL MEETING
AUGUST 27, 2024
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 10:31 a.m. and announced that the meeting is being held via teleconference; Councilmember Harmon announced that she is participating remotely due to a just cause.

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Alejandra Gutierrez (10:35 a.m.), Oscar Gutierrez (10:44 a.m.), Meagan Harmon, Mike Jordan, Kristen W. Sneddon (10:33 a.m.), Mayor Randy Rowse.

Councilmembers absent: None.

Staff present: City Administrator Kelly McAdoo, City Attorney Sarah J. Knecht, City Clerk Services Manager Sarah Gorman.

RECESS
City Attorney Sarah Knecht stated that the City Council would hear the items in the following order: 2, 3, 1.

Mayor Rowse recessed to closed session at 10:34 a.m. and stated that no reportable action is anticipated.

CLOSED SESSIONS

1. Subject: Public Employee Performance Evaluation – Government Code Section 54957 (170.01)
Recommendation: That Council hold a closed session for a Public Employee Performance Evaluation per Government Code Section 54957. 08/27/2024 Santa Barbara City Council Minutes Page 2 of 3 Title: City Administrator
Scheduling: Duration, 60 minutes; anytime
Report: None anticipated
Document:
- August 27, 2024, report from the City Attorney.

Time:
- 11:35 a.m. – 11:53 a.m.

Report:
- No report made.

2. Subject: Conference with City Attorney -- Anticipated Litigation -- Gov. Code § 54956.9(d)(4): Initiation of Litigation on One Matter (160.03) Recommendation: That Council hold a closed session to consider initiating litigation pursuant to subsection (d)(4) of Section 54956.9 of the Government Code and take appropriate action as needed (one potential case).

The litigation involves the installation of the City’s Desalination Conveyance Main Pipeline by the contractor Toro Enterprises Inc. and a rupture that occurred on June 21, 2024, that released a significant amount of water onto City streets and caused damage to surrounding public and private property.

Scheduling: Duration, 30 minutes; anytime
Report: Report may be announced if Council takes an action in closed session.

Document:
- August 27, 2024, report from the City Attorney.

Time:
- 10:31 a.m. – 11:10 a.m.

Report:
- No report made.

3. Subject: Conference with Real Property Negotiators (330.03) Recommendation: That Council hold a closed session pursuant to Government Code Section 54956.8 to discuss the proposal of price and terms of payment for a lease of the real property located at 916, 918, and 920 State Street.

Real Property: 916, 918, and 920 State Street (APN 039-322-052) 08/27/2024 Santa Barbara City Council Minutes Page 3 of 3 City Negotiators: City Attorney Sarah J. Knecht; Assistant City Attorney John S.

Doimas; Deputy City Attorney - Lessor Heather Minter
Negotiating Party: Roger Durling; Santa Barbara International Film Festival (SBIFF) a 501(c)(3) non-profit arts and educational
organization
Under Negotiation: Price and terms of lease agreement
Scheduling: Duration, 30 mins; anytime
Report: None anticipated
Document:
- August 27, 2024, report from the City Attorney.

Time:
- 11:10 a.m. – 11:35 a.m.

Report:
- No report made.

PUBLIC COMMENT ON ITEMS LISTED ON THE AGENDA
No one wished to speak.

ADJOURNMENT
Mayor Rowse adjourned the meeting at 11:53 a.m.

Approved and adopted by the City Council of the City of Santa Barbara on September 10, 2024.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
08/20/2024 Santa Barbara City Council Minutes Page 1 of 9

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
AUGUST 20, 2024
COUNCIL CHAMBERS, 735 ANACAPA STREET &
320-A WEST ORTEGA STREET, SANTA BARBARA, CA 93101

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

PLEDGE OF ALLEGIANCE
Mayor Rowse.

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

Councilmembers absent: None.

Staff present: City Administrator Kelly McAdoo, Assistant City Attorney Tava Ostrenger, Deputy City Clerk Norma Welche.

Councilmember Meagan Harmon participated remotely from the address noted on the agenda.

CEREMONIAL ITEMS

1. Subject: Recognition of Gary Fruin (120.04)
Action: Mayor Rowse presented the proclamation to Gary Fruin.

Speakers:
- Members of the Public: Brian Davis; Catherine Resnak; Tim Tremblay. 08/20/2024 Santa Barbara City Council Minutes Page 2 of 9 RECESS
2:19 p.m. – 2:24 p.m.

2. Subject: Employee Recognition – Service Award Pins (120.04) Recommendation: That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through August 31, 2024.

Action: City Administrator Kelly McAdoo expressed her gratitude towards all City employees that were recognized on this day. Mayor Rowse presented proclamations to Senior Maintenance Worker Brad Klein and Senior Assistant to the City Administrator Brandon Beaudette.

CHANGES TO THE AGENDA
City Administrator Kelly McAdoo announced that the following item will not be heard at today’s meeting:

7. Subject: Fiscal Year 2024 Fourth-Quarter Budget Adjustments (230.05) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 23-076, Adopting the Budget for Fiscal Year (FY) 2024, to Approve Proposed Fourth-Quarter (Q4) Budget Adjustments to FY2024 Revenue and Expenditure Appropriations.

CONSENT CALENDAR (Item Nos. 3-6, 8, 9, and 12)
The titles of the Ordinances and Resolutions related to the consent calendar were read.

Motion:

Councilmembers Jordan/A. Gutierrez to approve consent item nos. 3-6, 8, 9, and

12. Vote:

Unanimous roll call vote.

3. Subject: Minutes (000.00)
Recommendation: That Council waive reading and approve the minutes for the special meetings of July 23, 2024, July 26, 2024, and July 30, 2024; and the regular meetings of July 23, 2024, and July 30, 2024.

Action: Approved the recommendation.
08/20/2024 Santa Barbara City Council Minutes Page 3 of 9

4. Subject: Affordability Covenant Amendment for the Village Apartments Property Located At 518–524 West Canon Perdido Street [Ordinance Introduction] (640.08)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Second Amendment to Affordability Control Covenant Imposed on Real Property with The Turner Foundation – Since 1958, for Property Located at 518–524 West Canon Perdido Street, and Authorizing the Community Development Director to Execute Such Amendment.

Action: Approved the recommendation (August 20, 2024, report from the Community Development Director; proposed Ordinance).

5. Subject: Contract for Construction of the Carrillo Gymnasium Minor Renewal Project [Resolution; Agreement] (570.07)
Recommendation: That Council:

A. Award a contract with McGillivray Construction Inc., in the amount of $2,111,802 for construction of the Carrillo Gymnasium Renewal Project, and authorize the Public Works Director to execute the contract and approve expenditures up to $211,180 to cover any cost increases that may result from contract change orders for extra work and differences between estimated bid quantities and actual quantities measured for payment; B. Authorize the Public Works Director to execute the First Contract Amendment with Architectural Resources Group for construction support services for the Carrillo Gymnasium Renewal Project, Contract No. 26,869, in the amount of $72,433, for a total expenditure authority of $155,213; C. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Babara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Reallocate Funds for the Construction of Carrillo Gymnasium Renewal Project; and
D. Determine that the project is exempt under California Environmental Quality Act Guidelines §15301 (d) Existing Facilities and direct the filing of a Notice of Exemption in compliance with California Environmental Quality Act Guidelines § 15062.

Action: Approved the recommendations; Resolution No. 24-089; Agreement Nos. 28,556; 28,869.1 (August 20, 2024, report from the Public Works Director; proposed Resolution).
08/20/2024 Santa Barbara City Council Minutes Page 4 of 9

6. Subject: Authorization to Amend the Legal Services Agreement with Richards Watson & Gershon [Resolution; Agreement] (530.01) Recommendation: That Council:

A. Authorize the City Attorney to execute a second amendment to the legal services agreement with Richards Watson & Gershon, a professional corporation, relating to litigation to enforce the City’s waterline easements by increasing the agreement not to exceed amount by $170,000 (from $70,000 to $240,000), to be paid from funds appropriated to the Public Works Water Resources Division; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Appropriate Funds for the Small Tunnel Air Binding Project.

Action: Approved the recommendations; Resolution No. 24-090; Agreement No. 28,437.2 (August 20, 2024, report from the City Attorney; proposed Resolution).

8. Subject: Approval of Quinn Corporation Inc., for the Maintenance, Repair, Upgrade, Rental, and New Installation of Caterpillar Generator Systems (530.01)
Recommendation: That Council:

A. Find it to be in the City of Santa Barbara’s best interest to approve Quinn Corporation Inc., as the vendor for maintenance, repair, upgrade, rental, and new installation of Caterpillar emergency backup generators and associated systems at the City of Santa Barbara’s Water Resources facilities, without bids, as authorized by Municipal Code Section 4.52.070 (k); and
B. Authorize the Public Works Director to award purchase order contracts to Quinn Corporation Inc., for such services and equipment as needed for the next five-year period, expiring on August 19, 2029.

Action: Approved the recommendations (August 20, 2024, report from the Public Works Director).

9. Subject: Contract Amendment for Construction Support Services for the Santa Barbara Airport South Terminal Apron Redevelopment Project [Agreement] (560.04)
Recommendation: That Council authorize the Public Works Director to execute the Second Contract Amendment with Applied Earthworks, Inc., for archaeological and Native American monitoring services for the Santa Barbara Airport South 08/20/2024 Santa Barbara City Council Minutes Page 5 of 9 Terminal Apron Redevelopment Project, Contract No. 28,270, in the amount of $19,289, for a total expenditure authority of $139,409.

Action: Approved the recommendation; Agreement No. 28,270.2 (August 20, 2024, report from the Public Works Director).

12. Subject: Authorization to Amend the Legal Services Agreement with Best, Best & Krieger, LLP [Agreement] (560.01)
Recommendation: That Council authorize the City Attorney to execute an amended legal services agreement with Best, Best & Krieger, LLP to increase the not-to-exceed amount from $85,000 to $135,000 for special counsel services related to investigation of groundwater and communication with the Regional Water Quality Control Board regarding the same.

Action: Approved the recommendation; Agreement No. 28,561 (August 20, 2024, report from the City Attorney).

REPORT FROM THE FINANCE COMMITTEE
Finance Committee Chair A. Gutierrez reported that the Committee met to discuss the priorities for the expenditure of revenue generated from the Santa Barbara essential local services measure, and they approved to forward the list for Council approval and for Council to dictate the order of priorities pending on passage of the measure by the voters.

GENERAL PUBLIC COMMENT
Members of the Public: Kathy Jenega-Dykes; Clint Orr; Cy Madrone.

PULLED CONSENT ITEMS

10. Subject: Recreation Afterschool Program with Santa Barbara Unified School District [Agreement] (570.06)
Recommendation: That Council authorize the Parks and Recreation Director to enter into an agreement with the Santa Barbara Unified School District for the Recreation Afterschool Program.

Speaker:
- Staff: Parks and Recreation Director Jill Zachary.
08/20/2024 Santa Barbara City Council Minutes Page 6 of 9

11. Subject: Contracts with Santa Barbara Unified School District for Park Ranger Patrol Services and Junior High Afterschool Sports [Agreement] (570.06)
Recommendation: That Council:

A. Authorize the Parks and Recreation Director to enter into a six-month agreement with Santa Barbara Unified School District (SBUSD) for Park Ranger Patrol Services at SBUSD properties at a cost to SBUSD in the amount of $17,273; and
B. Authorize the Parks and Recreation Director to enter into a one-year agreement with Santa Barbara Unified School District (SBUSD) for the Junior High Afterschool Sports Program at SBUSD properties at a cost to the City in the amount of $32,000.

Speakers:
- Staff: Parks and Recreation Director Jill Zachary; Chief of Police Kelly Gordon.

13. Subject: Contract Amendment for Extra Design Services for the Via Lucero Wastewater Forcemain Replacement Project [Agreement] (540.13) Recommendation: That Council authorize the Public Works Director to execute the First Contract Amendment with Dudek, for extra design services for the Via Lucero Wastewater Forcemain Replacement Project, Contract No. 28,493, in the amount of $63,648, for a total contract amount of $319,196, and a total expenditure authority of $344,751.

Speaker:
- Staff: Principal Engineer Ashleigh Sizoo.

Motion:

Councilmembers Friedman/Jordan to approve the staff recommendations for consent item nos. 10, 11, and 13; Agreement Nos. 28,558; 28,559; 28,560; 28,493.1.

Vote:

Unanimous roll call vote.

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember Sneddon attended the following meetings or events: 1. Historic Landmarks Commission; 2. Water Commission; 3. Sustainability Council. - Mayor Rowse attended the following meetings or events: 1. PAL Awards; 2. Partners in Education; 3. 100th Year Anniversary at the Lobero Theater. 08/20/2024 Santa Barbara City Council Minutes Page 7 of 9

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ADMINISTRATOR

14. Subject: Response to the Santa Barbara County Grand Jury Report on Homeless Encampments in Santa Barbara County (150.04)
Recommendation: The Council authorize the Mayor to send a letter of response to the Santa Barbara County Grand Jury report titled “Homeless Encampments in Santa Barbara County: Becoming Part of the Community Again.” Documents:
- August 20, 2024, report from the City Administrator.
- PowerPoint presentation prepared and made by Staff.

Speakers:
- Staff: Senior Assistant to the City Administrator Barbara Andersen. - Members of the Public: Elizabeth Adams.

Motion:

Councilmembers Jordan/O. Gutierrez to approve the staff recommendation.

Vote:

Unanimous roll call vote.

POLICE DEPARTMENT

15. Subject: Response to the Santa Barbara County Grand Jury Report on Individuals in Crisis (150.04)
Recommendation: That Council authorize the Mayor to send a letter of response to the Santa Barbara County Grand Jury Report titled “Individuals in Crisis: The Right Care at the Right Time.”
Documents:
- August 20, 2024, report from the Chief of Police.

Speakers:
- Staff: Chief of Police Kelly Gordon; Commander Charles Katsapis. - Members of the Public: None.

Councilmember O. Gutierrez was excused from the meeting at 3:37 p.m.

Motion:

Councilmembers Sneddon/Friedman to approve the staff recommendation.

Vote:

Unanimous roll call vote (Absent: Councilmember O. Gutierrez). 08/20/2024 Santa Barbara City Council Minutes Page 8 of 9 Councilmember O. Gutierrez returned to the meeting at 3:50 p.m.

MAYOR AND COUNCIL REPORTS

16. Subject: Request from Mayor Pro Tempore Mike Jordan and Councilmember Eric Friedman to Discuss Redevelopment of the La Cumbre Plaza Macy’s into Residential Housing (170.01)
Recommendation: That Council consider the request from Mayor Pro Tempore Jordan and Councilmember Friedman to discuss redevelopment of the La Cumbre Plaza Macy’s into residential uses and other improvements and to direct staff to initiate negotiations with the project owners regarding a term sheet as a basis for a possible development agreement.

Documents:
- August 20, 2024, report from the City Administrator.

Speakers:
- Staff: Community Development Director Eli Issacson; City Planner Allison DeBusk.
- Members of the Public: Richard Appelbaum; Lisa Sands; Dianne Black; Elizabeth Adams; Leif Ourston; Pedro Toscano; Nancy Avoce; Steve Johnson; Linda Honikman; Steve Fort.

Motion:

Councilmembers Friedman/Jordan to give staff direction to have discussions with the owners of the Macy’s project based on the staff memo and comments heard at this meeting, and then return at a future date with a pre-term sheet for finalization.

Vote:

Unanimous roll call vote.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember Sneddon attended the following meetings or events: 1. Sadako Peace Day; 2. SB PAL Appreciation Breakfast; 3. Buena Tierra ribbon cutting; 4. Neighborhood Clinic Staff Appreciation Breakfast.

PUBLIC COMMENT (IF NECESSARY)
No one wished to speak.
08/20/2024 Santa Barbara City Council Minutes Page 9 of 9

ADJOURNMENT
Mayor Rowse adjourned the meeting at 5:04 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on September 10, 2024.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
08/27/2024 Santa Barbara City Council Minutes Page 1 of 5

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
AUGUST 27, 2024
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:01 p.m. and announced that the meeting is being held via teleconference; Councilmember Harmon announced that she is participating remotely due to a just cause. (The Finance Committee and Ordinance Committee, which generally meet at 12:00 p.m., did not meet on this day.)

PLEDGE OF ALLEGIANCE
Mayor Rowse.

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

Councilmembers absent: None.

Staff present: City Administrator Kelly McAdoo, City Attorney Sarah J. Knecht, City Clerk Services Manager Sarah Gorman.

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

CONSENT CALENDAR (Item nos. 1-7)
The titles of the Ordinances and Resolutions related to the consent calendar were read.

Motion:

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

Vote:

Unanimous roll call vote.
08/27/2024 Santa Barbara City Council Minutes Page 2 of 5

1. Subject: Affordability Covenant Amendment for the Village Apartments Property Located At 518–524 West Canon Perdido Street [Ordinance Adoption] (660.04)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Second Amendment to Affordability Control Covenant Imposed on Real Property with The Turner Foundation – Since 1958, for Property Located at 518–524 West Canon Perdido Street, and Authorizing the Community Development Director to Execute Such Amendment.

Action: Approved the recommendation; Ordinance No. 6160.

2. Subject: License Agreement with Coast Living, LLC [Resolution; Agreement] (330.08)
Recommendation: That Council:

A. Authorize the Parks and Recreation Director to execute a four-month license agreement with Coast Living, LLC to operate a rental concession at East Beach; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to increase revenue appropriations by $14,115 in the Parks and Recreation Department Fiscal Year 2025 General Fund for the East Beach Rental Concession License Agreement.

Action: Approved the recommendations; Resolution No. 24-091; Agreement No. 28,562 (August 27, 2024, report from the Parks and Recreation Director; proposed Resolution).

3. Subject: July 2024 Investment Report (260.02)
Recommendation: That Council accept the July 2024 Investment Report.

Action: Approved the recommendation (August 27, 2024, report from the Finance Director).

4. Subject: Professional Services Agreement Between the Library and Family Service Agency of Santa Barbara for Community Support Services and Outreach [Agreement] (570.04)
Recommendation: That Council authorize the Library Director to execute a City Professional Services Agreement in the amount of $137,500 with Family Service 08/27/2024 Santa Barbara City Council Minutes Page 3 of 5 Agency of Santa Barbara to provide a Community Support Specialist contracted position that would work in collaboration with Library staff through July 30, 2025.

Action: Approved the recommendation; Agreement No. 28,563 (August 27, 2024, report from the Acting Library Director).

5. Subject: Skofield Park Resident Caretaker [Agreement] (570.05) Recommendation: That Council authorize the Parks and Recreation Director to execute a Caretaker Rental Agreement for Skofield Park with Todd Newell, commencing September 1, 2024, through August 31, 2025.

Action: Approved the recommendation; Agreement No. 28,564 (August 27, 2024, report from the Parks and Recreation Director).

6. Subject: Vic Trace Radio Tower FEMA Replacement [Agreement] (170.04) Recommendation: That Council authorize the Information Technology Director to execute a sole source Purchase Order to Tower Systems in the amount of $279,059 for the replacement of the Vic Trace Radio Tower.

Action: Approved the recommendation; Agreement No. 28,565 (August 27, 2024, report from the Information Technology Director).

7. Subject: Recruitment for City Advisory Groups (140.02) Recommendation:

A. The City Clerk’s Office will accept applications through Wednesday, September 25, 2024, at 5:00 p.m. to fill scheduled vacancies on various City Advisory Groups and the unscheduled vacancies resulting from resignations received in the City Clerk’s Office through Monday, September 9, 2024, at 5:00 p.m.;
B. The City Council will conduct in-person interviews of applicants for vacancies on various City Advisory Groups on Tuesday, October 15, 2024, at 6:00 p.m. (Estimated Time), Tuesday, October 22, 2024, at 4:00 p.m. (Estimated Time), and Tuesday, October 29, 2024, at 4:00 p.m. (Estimated Time); and
C. The City Council will make appointments to fill the vacancies on various City Advisory Groups on Tuesday, November 19, 2024.

Action: Approved the recommendations.
08/27/2024 Santa Barbara City Council Minutes Page 4 of 5

PUBLIC COMMENT
Members of the Public: David Crockett Williams; Sullivan Israel; Peter Smith.

PULLED CONSENT ITEMS
None.

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember Friedman attended the following meeting or event: 1. Library Board;

2. Southwest Chamber public policy meeting.
- Councilmember O. Gutierrez attended the following meeting or event: 1. Police and Fire Commission meeting; 2. Southwest Chamber public policy committee meeting with Councilmember Friedman; 3. Viewed Access Advisory Committee meeting. - Councilmember Sneddon attended the following meeting or event: 1. Creeks Advisory Committee meeting; 2. COMB meeting.
- Mayor Rowse attended the following meeting or event: 1. Coastal Rail Coordinating Council meeting in San Luis Obispo.

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

FINANCE DEPARTMENT

8. Subject: City Council Prioritization of Revenue Generated by Proposed Ballot Measure on Transaction and Use Tax Increase to Maintain Essential Local Services [Resolution] (110.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Establishing Priorities for the Expenditure of Revenue from the Santa Barbara Essential Local Services Measure.

The title of the Resolution was read.

Documents:
- August 27, 2024, report from the Finance Director.
- PowerPoint presentation prepared and made by Staff.
- Proposed Resolution.

Speakers:
- Staff: Finance Director Keith DeMartini.
- Members of the Public: Pat Wheatley; Cecilia Harris; Susan Renehan; Lauren Trujillo; Anne Howard; Megan Turley.
08/27/2024 Santa Barbara City Council Minutes Page 5 of 5 Motion:

Councilmembers Friedman/Sneddon to approve the staff recommendation, with the following changes: adding the word “collective” after “generally allocated according to the following” and before “priorities.”, and to add the word “maintaining” before “stormwater”; Resolution No. 24-092.

Vote:

Unanimous roll call vote.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember Friedman attended the following meeting or event: 1. League of Cities Coastal Cities’ group meeting; 2. Will attend Coastal Commission meeting; 3. State of the County meeting; 4. Santa Barbara Neighborhood Walk of La Cumbre Plaza; 4.

Board Meeting of Martin Luther King Jr Foundation.
- Councilmember Sneddon attended the following meeting or event: 1. Black Youth Summit; 2. Pride Festival; 3. Plaza Del Mar Bandshell opening; 4. Santa Barbara Trust for Historic Preservation meeting; 5. Riviera Association meeting.

PUBLIC COMMENT (IF NECESSARY)
No one wished to speak.

ADJOURNMENT
Mayor Rowse adjourned the meeting at 3:08 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on September 10, 2024.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 10, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution]
RECOMMENDATION: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Downtown Community Benefit Improvement District Special Assessment on the 2024-2025 Tax Roll; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Coast Village Community Benefit District Special Assessment on the 2024-2025 Tax Roll.

DISCUSSION:

The City Council adopted Chapter 4.45 of the Santa Barbara Municipal Code in 2021 to facilitate the formation of Community Benefit Improvement Districts (CBID) to establish a procedure for property owners to petition to fund special services through special benefit assessments on their properties.

The levy of assessments may pay for services above and beyond general municipal service levels. The assessments may pay for services such as additional sidewalk sweeping; beautification programs; district branding and marketing and promotions; parking mitigation programs; district administration; and possibly programs to mitigate the homeless issues in the area. These are outlined in each district's Management District Plan (Plan). The Plan also establishes the methodology to calculate each parcel’s special assessment.

At the June 7, 2022 City Council meeting, Council adopted a resolution establishing the Coast Village CBID and levying the assessment in connection with the district. At the June Agenda Item No. 3
File Code No. 290.00
Council Agenda Report
Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution] September 10, 2024

Page 2 ends

25, 2024, Council adopted a resolution establishing the Downtown CBID and levying the assessment. To assure that the assessments are collected on the tax roll and as part of the annual process to collect these assessments, a resolution requesting the assessment amounts for that specific fiscal year must be adopted by the City Council and a request must be sent to the County Board of Supervisors requesting the approved assessment amounts be included on the Parcel Tax Roll. The adoption of these resolutions is essentially ministerially and is not an opportunity to change any aspect of the CBID.

For Tax Roll 2024-2025, this will be the first year of the Downtown CBID and the total amount for Non-Governmental parcels to be placed on the tax roll is $1,695,715.03. The total amount for all parcels is $2,202,753.

For Tax Roll 2024-2025, this will be the third year for the Coast Village CBID. There is no increase proposed to the Non-Governmental parcels to be placed on the tax roll. The total amount is $308,025.87.

The Downtown CBID resolution also clarifies that the assessments will be collected by the County of Santa Barbara Tax Assessor and not the City of Santa Barbara for the first assessment year.

BUDGET/FINANCIAL INFORMATION:

There is no direct financial impact to the City of Santa Barbara with the adoption of these resolutions. However, as stated in the Downtown CBID Plan, the City would be assessed approximately $179.191.51 in Fiscal Year 2024-2025 for properties located in the Downtown CBID.

ATTACHMENTS: 1. Downtown CBID Management Plan

2. Coast Village CBID Management Plan
PREPARED AND SUBMITTED BY: Brandon Beaudette, Acting Library Director APPROVED BY: Kelly McAdoo, City Administrator

THE DOWNTOWN SANTA BARBARA

COMMUNITY BENEFIT IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Final Plan -
April 4, 2024
Prepared pursuant to the City of Santa Barbara’s Community Benefit Ordinance # 5995, Amending the Santa Barbara Municipal Code by adding Chapter 4.45 relating to Community Benefit Districts.

Prepared for:

The Downtown Organization of Santa Barbara
The Santa Barbara South Coast Chamber of Commerce
City of Santa Barbara
Prepared by:

New City America, Inc.

The Downtown Santa Barbara
Community Benefit Improvement District Steering Committee Corporate Office  2011 W. California Street  San Diego, CA 92110  619-233-5009  Midwest Office  300 N. State Street  Ste 4710  Chicago ILL.  60654  888-356-2726 New England Office: 42 Pearl Street,  New Bedford, MA  02740 [email protected]  www.newcityamerica.com  Facebook: New City America, Inc.

ATTACHMENT 1
The Downtown Santa Barbara
Community Benefit Improvement District
2024 Management District Plan
Section Number

1. Management District Plan Summary 3

2. Downtown Santa Barbara CBID Boundaries 11

3. District Improvement and Activity Plan 18

4. Assessment Methodology 23

5. District Rules, Regulations and Governance 34

6. Implementation Timetable 34

7. Assessment Roll of Properties Included 35

Attachment:

A. Engineer’s Report

EXHIBIT A
Section 1
Management District Plan Summary
The name of this Community Benefit Improvement District (“CBID”) is the Downtown Santa Barbara Community Benefit Improvement District (“Downtown Santa Barbara CBID” or the “District”). The District is being formed under the City of Santa Barbara’s Community Benefit Ordinance # 5995, amending the Santa Barbara Municipal Code by adding Chapter 4.45 relating to Community Benefit Districts.

The levy of assessments on real property within the proposed District will fund physical improvements to individual properties, attract new customers, tenants, and increase business sales resulting in stabilized rents, particularly after the impact of COVID 19 on property owners throughout Downtown Santa Barbara District. The assessments will fund maintenance, special events and activities, and other special benefits within the District, revitalizing the Downtown Santa Barbara district and creating jobs, attracting and retaining businesses, and reducing crime.

Downtown Santa Barbara CBID Steering Committee
For decades, downtown stakeholders have worked to improve and enhance the experience and overall ambiance of working, visiting, shopping, and residing in the Downtown Santa Barbara district. Despite this ongoing work, efforts have been hindered by a lack of sufficient, sustainable funds to appropriately staff and fund the necessary improvements for the long-term needs of the district.

To ameliorate this situation, in the summer of 2022 the Downtown Organization and the Santa Barbara South Coast Chamber of Commerce hired New City America, a Southern California company that specializes in CBID and PBID investigations and formations, to investigate the likelihood of conceptual support for a new Downtown Santa Barbara District Community Benefit Improvement District. A survey was conducted to gauge support within the community for a new Special Benefit District for both the Downtown Santa Barbara District property owners and the business community alike.

Since the initiation of work last fall, the Downtown Santa Barbara Community Benefit Improvement District Steering Committee has worked diligently to outreach to property owners and build a level of support for the new CBID. The Downtown Santa Barbara CBID Steering Committee has met multiple times, has reviewed multiple versions of a management plan, and finalized the boundaries, services, costs, and term at its March 2023, CBID Steering Committee meeting.

The meeting dates of the Steering Committee included the following:

October 5th, 2022
November 2nd, 2022
November 10th, 2022
December 1st, 2022
January 19th, 2023
February 27th, 2023
March 9th, 2023
March 21st, 2023
April 10th, 2023
May 31st, 2023

EXHIBIT A
The business and property owners who participated in the Downtown Santa Barbara CBID Steering Committee meetings included:

Warren Nocon, Art Prado, Anne Petersen, Richard Berti, Marina Satoafaiga, Tom Luria, Brittany Zajic, Jim Knell, Adam Geeb, Rick Ostrander, Scott San Filippo, Dustin Hoiseth.

Steering Committee: Joe Corazza, Trey Pinner, Crosby Slaught, Janet Garufis, Ron Robertson, Trevor Large, Geoffrey Carter, Peter Lewis, Mitchell Sjerven, Matt LaBrie, David de L'Arbre, Dan Burnham, CJ Young, Kristen Miller, Mary Lynn Harms-Romo, Cortney Rintoul, Robin Elander, Daniel Ramirez, Consultant, Marco Li Mandri/New City America.

Priority Special Benefit Services/Survey
This past October 2022, a survey was sent out to all the property owners in the proposed CBID area, to ascertain their level of conceptual support for the services that would be funded through the establishment of a new Downtown Santa Barbara Community Benefit Improvement District.) New City America, who is consulting on the formation, tallied the support based upon the property variables that would be assessed in the ultimate funding of the special benefit services of the district. Those property variables include parcel lot size, linear frontage and building square footage. The results were as follows:

We received responses from over 104 property owners representing 213 parcels in the Downtown. In their response to the survey, they prioritized the following special benefit services:
• 95 of the respondents believed that Downtown, as portrayed in the media, has been negative.
• 103 of the respondents believe that Downtown is safe but suffers from an unsafe image. • 122 of the respondents believe that safety ambassadors or private security should be funded to ensure order in Downtown.
• 128 respondents believe that homeless outreach services to respond to panhandling and loitering issues should be funded with the CBID.
• 101 respondents would support enhanced sidewalk and gutter sweeping services and sidewalk pressure washing services in Downtown.
• 119 of the respondents’ support property owner funded special events such as Holiday décor, street festivals, etc. to improve the identity and bring positive attention to downtown Santa Barbara
• 100 of the respondents’ support property owner funded marketing, promotions, social media and branding programs or campaigns to bring new business and attract new tenants to downtown Santa Barbara
Based upon these results, the Downtown Santa Barbara CBID Steering Committee determined this past January there was enough support to come up with a preliminary Management District plan.

How can a new CBID benefit property owners in Downtown Santa Barbara District? In summary, a Downtown Santa Barbara CBID is a Special Benefits Assessment District whereby property owners vote, through a mail ballot procedure, to supplement their property tax bills to pay for and control the assessments they generate through the CBID. The CBID will not replace current City services, but it can fund solutions to supplement City services in the areas including:
• Safety, petty criminal, and homeless/vacancy problems • Sidewalk cleanliness
• Increase the trimming and replacement of damaging trees and landscaping

EXHIBIT A
• Install/improve decorative amenities such as street
furniture/fixtures/equipment/lighting
• Promote and enhance the brand/image of Downtown Santa Barbara • Manage events in and around the district
• Create a strong social media presence, and facilitate public relations for Downtown Santa Barbara businesses
• Provide parking directional services and other mobility related activities. • Promote public space development and placemaking

MOST IMPORTANTLY, THESE PROPERTY ASSESSMENT FUNDS WILL NOT REPLACE EXISTING

CITY SERVICES IN THE DOWNTOWN SANTA BARBARA DISTRICT AND WILL BE CONTROLLED

BY AN EXISTING OR NEW NON-PROFIT CORPORATION OF PROPERTY AND BUSINESS OWNERS, ESTABLISHED AFTER THE DISTRICT IS VOTED IN BY PROPERTY OWNERS.

Special Benefit Budget Category Analysis
The Downtown Santa Barbara CBID Management District Plan gives the property owners greater flexibility in determining the type and frequency of special benefit services that will be allocated on a year-to-year basis.

The proposed Downtown Santa Barbara Community Benefit Improvement District, will fund special benefit services, over and above, what the City of Santa Barbara, are currently providing. Special benefits and supplemental to the general benefits paid for out of the City and County budgets. Those categories of special benefit services include the following:

All services listed below are special benefits and supplemental to current City services.

CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION

Examples of this category of special benefit services and costs may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Regular sidewalk steam cleaning
• Beautification of the district
• Enhanced trash emptying (over and above city services) • Timely graffiti removal, within 72 hours as necessary • Maintenance of existing and new public spaces that are not part of the City of Santa Barbara Park’s and Recreation responsibilities.
• Installation and maintenance of hanging plants, planting flowers throughout the district.
• Personnel to manage in-house or contracted maintenance and/or security teams. • Private security or SBPD overtime officers, and homeless outreach workers

EXHIBIT A

DISTRICT IDENTITY AND PLACEMAKING

Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Enhancing the current City holiday and seasonal decorations • Branding of the Downtown Santa Barbara CBID properties so a positive image is promoted to the public including the development of a new logo. • Banner programs
• Public art displays
• Public space design and improvements
• Events and Programming
• Business support, retention services including leasing strategies, special marketing to specific categories of businesses, filling of vacancies. • Personnel to manage in-house or contracted public relations, web site maintenance or social media contractors.

ADMINISTRATION/PROGRAM MANAGEMENT

Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work
• Grant writing

CONTINGENCY/CITY AND COUNTY FEES/RESERVE

Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves
Proposed First Year Downtown Santa Barbara District CBID Budget Category of Services Percentage of budget 1st Year Allocation (rounded)
Civil Sidewalks/Safety and Cleanliness 66% $1,450,000
District Identity and Placemaking 14% $308,000
Administration 15% $330,000
Contingency/Reserve 5% $114,753
Total 1st year Budget 100% $2,202,753

EXHIBIT A

METHOD OF FINANCING
The financing of the Downtown Santa Barbara CBID is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage, on all sides of the parcel (excluding alleys) • Lot square footage
• Building square footage
• Current and future residential condominiums
• Location within one of the two geographic benefit zones of the district Costs:

The costs per parcel are based upon the five factors listed above. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district along State Street, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received.

First Year Annual Costs Per Benefit Zone

Property Variable Benefit Zone 1 Benefit Zone 2
Building Square Footage $0.22 $0.16
Lot size $0.18 $0.13
Linear Frontage $6.00 $4.50
Residential Condos Unit Sq. Ft. $0.22 $0.22
In addition, other factors will be used to determine assessments based upon the anticipated benefit with the current land uses:
• Residential condominiums will be assessed for parcel unit building square footage only.
• All publicly owned and operated parcels will be assessed for linear frontage and lot size only.

Data and Benefit Zones
There are 542 individual parcels owned by 371 property owners in the proposed Downtown Santa Barbara Community Benefit Improvement District. The data was obtained by Santa Barbara County Assessors as well as input from the various property owners in the Downtown Santa Barbara District and Co-Star (a real estate software). The following data is used as the basis for the generation of the CBID.

EXHIBIT A
Property Data by Benefit Zone
Zones Building
Square Feet
Lot
Square Feet
Linear
Frontage
Residential
Condos/Apt
1 4,320,260 sq. ft 4,183,510 sq. ft. 39,784 linear feet 68,982 sq. ft. 2 408,940 sq. ft. 1,002,709 sq. ft. 9,885 linear feet 23,270 sq. ft.

Total 4,729,200 sq. ft 5,186,219 sq. ft 49,669 linear feet 92,252 sq. ft.

Boundaries:

The following description summarizes the two different Benefit Zones within the proposed Downtown Santa Barbara Community Benefit Improvement District. Both Benefit Zones are predominantly geographically based. The key differences in the assessment methodology and service levels will be based only on:

1. the location in one benefit zone or the other,

2. whether the parcels are publicly owned and

3. if the parcel is a single residential condominium.

Otherwise, the assessment methodology will be applied equally to all land uses, with the exceptions listed above. State Street and the other related streets run diagonally from the northwest to the southeast, ending at the Pacific.

Zone 1: Core Area:

Zone 2: In general, all the parcels on the east side of Anacapa Street from Sola Street on the northwest side to Highway 101 on the southeast side.

Reimbursement of Formation Funds
This plan pre-authorizes the repayment of formation funds advanced by Downtown Santa Barbara District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive, and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $150,000 shall be equally reimbursed to the two organizations who invested in this process, and they shall be repaid in the first year of the formation of the district, based upon request and need.

Cap
The District budget and assessments may be subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association/District Management Corporation and will vary between 0% and 5% annually. Changes in land uses, the development of vacant parcels, the conversion of tax exempt to for-profit developments, the demolition of buildings, building improvements that increase square footages, and new

EXHIBIT A
building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

Once the City verifies the petitions totaling a minimum of 30%, ($660,826) of the first year annual budget which is projected to be $2,202,753 in assessments, the Santa Barbara City Council may adopt a Resolution of Intention to mail out ballots to all affected property owners. The City will then hold a public hearing and tabulate the ballots. The Downtown Santa Barbara CBID will be formed if the weighted majority of all returned mail ballots support District formation and if the City Council adopts a Resolution of Formation to levy the assessments on the benefiting parcels. The date for that public hearing has not been scheduled but is assumed that it will be held in late the early summer of 2024, based upon the successful completion of the petition drive.

Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. State law and the local enabling ordinance permit this annual disestablishment of the District based upon petition and vote of the property owners. The threshold needed to trigger the balloting for the formation of the district is the same as the process for disestablishment of the district.

Time and Manner for Collecting Assessments
The Downtown Santa Barbara CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. Any delinquent assessments owed for the first year will be added to the property tax roll for the following year together with any applicable interest and penalties. The “property owner” means any person shown as the owner/taxpayer on the last equalized assessment roll or otherwise known to be the owner/taxpayer by the City. Publicly owned properties of the City and County shall not be collected by the County Tax Assessor, but rather by a manual billing by the City of Santa Barbara.

EXHIBIT A
During the first year of operation for calendar year 2025, the City of Santa Barbara shall bill the CBID property owners in two installments, which carries the same force of law as the County Tax Assessor, to launch the CBID programs in early 2024. Commencing December 2024 forward, the County Tax Assessor will include the CBID assessments as a separate line item for the remaining four years of the first phase of the district term.

Government Assessments
The Downtown Santa Barbara CBID Management Plan assumes that any public or tax-exempt parcels shall pay into the CBID in proportion to the assessments paid for their specific special benefit services. There are currently many City and County properties in the proposed Downtown Santa Barbara CBID. The services these publicly owned parcel will be receiving are predominantly based upon the Civil Sidewalks and Administrative services in the budget.

Since their buildings will not be marketed and promoted by the District Identity services in the CBID, their building square footage will not be assessed by the CBID plan.

Governance
Pursuant to Section 36650 of the California Streets and Highway Code, a District Management Corporation or Owners’ Association will review District budgets and policies annually within the limitations of the Management District Plan. The Management Corporation must file Annual Reports with the City of Santa Barbara and will oversee the day-to-day implementation of services as defined in the Management District Plan. “Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway.

Code § 36612.)
A new public benefit non-profit corporation [501(c)(3)], will be established once the district has been approved by the property owners and they will serve in the capacity of the Owners Association to run the day-to-day operations of the district.

Disestablishment
Under the local enabling ordinance, the Downtown Santa Barbara CBID property owners will have an annual period in which to submit petitions to the City Council to disestablish the CBID. If the property owners vote by weighted majority to disestablish the District, assessments will be removed from the parcels the following fiscal year. Unexpended surplus funds will be returned to property owners based upon a parcel’s percentage contribution to the previous fiscal year’s assessments.

EXHIBIT A
Section 2 Downtown Santa Barbara Community Benefit Improvement District Boundaries

Boundaries
The proposed Downtown Santa Barbara CBID consists of approximately 37 square blocks (blocks vary in size on each side of Highway 101), consisting of 542 parcels owned by 371 property owners. See the Downtown Santa Barbara proposed CBID map in Section 2, pages 13 - 17. The District is generally bounded by:

Zone 1: Core Area:

Zone 2: In general, all the parcels on the east side of Anacapa Street from Sola Street on the northeast corner side to Highway 101 on the southeast corner.

Benefit Zones
The district consists of two benefit zones.

District Boundary Rationale
The Downtown Santa Barbara CBID boundaries are comprised of parcels that highlight an array of high-quality restaurants, retailers, office buildings, market rate and residential condominiums apartment units, hotels, industrial and civic buildings. Benefit Zone 1 properties front along State Street up to Chapala Street on the west and Anacapa on the east side. Zone 2 properties, in general, are to be found on the eastern side of Anacapa Street. (See maps on pages 13 – 17). The grid layout for Downtown Santa Barbara runs from the 101 freeway northwesterly diagonally up to Sola Street.

ZONE 1

Zone 1 Northern Boundary -
The northern boundary of the proposed Downtown Santa Barbara CBID includes all parcels on the south side of Sola Street at the intersection of Sola and Chapala Street, parcel number 039-131-021 and runs northeasterly ending at the intersection of Anacapa and Sola Street at parcel number 039-132-008. The District will only provide services to the individual assessed parcels within the boundaries; special benefit services will not be provided to parcels that are not assessed.

Zone 1 Southern Boundary -
The southern boundary of the proposed Downtown Santa Barbara CBID begins at the parcel at the intersection of Highway 101 and Chapala, parcel 037-252-007 and runs northeasterly along the north side of Highway 101 ending at parcel 031-254-019 at the intersection of

EXHIBIT A
Anacapa Street and Highway 101. The District will only provide services to the individual assessed parcels within the CBID boundaries; services will not be provided to parcels that are not assessed.

Zone 1 Eastern Boundary:

The eastern boundary starts at the corner of the 101 freeway and Anacapa Street 037-254- 019, and continues along the west side of Anacapa Street ending at parcel number 039-132- 008 at the intersection of Sola and Ancapa Streets. The District will only provide services to the individual assessed parcels within the CBID boundaries, Zone 1 Western Boundary:

The western boundary of the proposed Downtown Santa Barbara CBID includes all the parcels fronting the east side of Chapala Street starting at the corner of Highway 101 and Chapala Street, parcel 037-252-007 and then continues northwesterly ending at the intersection of Sola and Chapala Streets, parcel 039-131-021. The District will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed.

ZONE 2
Zone 2 parcels include all of those parcels that start on the north at the intersection of Sola and Anacapa Streets, east side parcel 029-071-001 and continues down Anacapa Street including all of the parcels fronting on the east side of Anacapa Street ending at the intersection of Highway 101 and Anacapa Street, (east side) parcel number 031-331-022. The District will only proide services to the individual parcels withint the boundaries; services will not be provide to parcels that are not assessed.

Summation
A list of all parcels included in the proposed Downtown Santa Barbara CBID are shown as Appendix 1, attached to this report identified by their respective Santa Barbara County assessor parcel numbers. All identified assessed parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Management District Plan. All Downtown Santa Barbara CBID funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District.

EXHIBIT A

EXHIBIT A
Section 3
District Improvement and Activity Plan

Explanation of Special Benefit Services

All of the improvements and activities detailed below are provided only to properties within the boundaries of the Downtown Santa Barbara CBID, as the improvements and activities will provide special benefits to the owners of these properties.

The City will continue to provide general benefit services in Downtown Santa Barbara District which will include public safety programs, street sweeping, tree trimming, roadwork repairs, sidewalk repair, trash collection of public refuse containers, etc. The frequency of these general benefits may change from year to year and time to time based upon budget constraints. However, City general benefits will not be withdrawn from Downtown Santa Barbara District unless they are withdrawn by an equal frequency City wide. The CBID funded special benefits will not replace City funded general benefits, but rather will provide special benefits to parcel owners over and above the general benefits provided by the City of Santa Barbara.

All services funded by the assessments outlined in the Management District Plan are intended to directly benefit the properties within the District to support increased commerce, business attraction and retention, to retain and increase commercial property rentals, attract new residential developments, enhance safety and cleanliness in the District, improve District identity, and eventually fund specialized beautification and enhanced services for the property owners, businesses, visitors and residents within the District.

Special Benefit Budget Category Analysis
This Plan gives property owners greater flexibility in determining the type and frequency of special benefit services that will be allocated on a year-to-year basis. As Santa Barbara’s Downtown Santa Barbara District evolves, services that are needed one year may not be needed the next. Therefore, “bundles” or categories of special benefit funding have been created and divided into four broad categories – Civil Sidewalks, District Identity and Placemaking, Administration, and Contingency. The bundles are allocated funding percentages with the flexibility to prioritize or minimize a service within each bundle.

The bundles or categories of services and their percentages represent the service plan the Downtown Santa Barbara District property owners will be voting on when the Downtown Santa Barbara District CBID comes up for a mail ballot later this summer.

EXHIBIT A
The proposed “bundles” of special benefit services are listed below and are supplemental to current City services.

CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION
Examples of this category of special benefit services and costs may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Regular sidewalk steam cleaning
• Beautification of the district
• Enhanced trash emptying (over and above city services) • Timely graffiti removal, within 72 hours as necessary • Maintenance of existing and new public spaces that are not part of the City of Santa Barbara Park and Recreation Dept. responsibilities.
• Installation and maintenance of hanging plants, planting flowers throughout the district.
• Personnel to manage in-house or contracted maintenance and/or security teams. • Private security or SBPD overtime officers, and homeless outreach workers

DISTRICT IDENTITY AND PLACEMAKING
Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Enhancing the current City holiday and seasonal decorations • Branding of the Downtown Santa Barbara CBID properties so a positive image is promoted to the public including the development of a new logo. • Banner programs
• Public art displays
• Public space design and improvements
• Events, 1st Thursday, Craft Beer Festival, Live Art and Wine tour, holiday tree lighting, etc.
• Business support, retention services including leasing strategies, special marketing to specific categories of businesses, filling of vacancies. • Personnel to manage in-house or contracted public relations, web site maintenance or social media contractors.

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work, grant writing

EXHIBIT A

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves

METHOD OF FINANCING
The financing of the Downtown Santa Barbara CBID is based upon the levy of special assessments upon real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII (d) of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage on all sides excluding alleys
• Lot square footage
• Building square footage
• Current and future residential condominiums that currently exist or will be constructed within the District
• Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determine assessments based upon the anticipated benefit with the current land uses:
• Residential condominiums will be assessed for unit square footage only. • All publicly owned and operated parcels will be assessed for linear frontage and lot size only.
• Hotels within the boundaries of the proposed district will not pay for the District Identity and Placemaking services since they are currently funding the Tourism Improvement District, which funds those special benefit services.

Property Data by Benefit Zone

Zones Building
Square Feet
Lot
Square Feet
Linear
Frontage
Residential
Condos/Apt
1 4,320,260 sq. ft 4,183,510 sq. ft. 39,784 linear feet 68,982 sq. ft. 2 408,940 sq. ft. 1,002,709 sq. ft. 9,885 linear feet 23,270 sq. ft.

Total 4,729,200 sq. ft 5,186,219 sq. ft 49,669 linear feet 92,252 sq. ft.

EXHIBIT A
Costs
The costs per parcel are based upon the five factors listed on page 20. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received so we have agreed upon the following Benefit Zones.

Proposed First Year Downtown Santa Barbara District CBID Budget

Category of Services Percentage of budget 1st Year Allocation (rounded)
Civil Sidewalks 66% $1,450,000
District Identity and Placemaking 14% $308,000
Administration 15% $330,000
Contingency/Reserve 5% $114,753
Total 1st year Budget 100% $2,202,753
First Year Annual Costs Per Benefit Zone
Property Variable Benefit
Zone 1
Benefit
Zone 2
Building Square Footage $0.22 $0.16
Lot size $0.18 $0.13
Linear Frontage $6.00 $4.50
Residential Condos
Building Square Foot
$0.22 $0.22
Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Downtown Santa Barbara District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive, and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $100,000, split equally by the Downtown Organization and the Santa Barbara South Coast Chamber, shall be reimbursed to those organizations and property owners who invested in this process, and they shall be repaid in the first three years of the formation of the district, based upon request of the funders.

EXHIBIT A
Linear frontage and parcel size are normally not altered in the redevelopment of a site.

Changes to assessments are more likely to occur upon changes to building square footages.

Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

Operating Budget
A projected operating budget, based upon the local enabling ordinance, has an initial 5 - year term and may be renewed for up to 20 years more. New City America has listed the maximum percentage of allowable annual increases based upon the current data within the district, with the following assumptions:
• Assessments may be subject to annual increase, based upon the action of the new District Management Corporation Board, not to exceed 5% per year. • Changes in land use, demolition of existing buildings, and new development will occur and will change the improvements to that parcel, normally due to redevelopment of the site and the addition of new building square footage which shall be assessed based upon the provisions laid out in this Management Plan.

The budget for specific programs may be reallocated within each budget category by up to 10% during the 5-year term of the District. The Management Corporation Board may alter the budget based upon service needs and such changes shall be included in the Annual report and submitted to the Santa Barbara City Council for review and approval.

Five-Year Projection of Maximum Assessment for the
Downtown Santa Barbara CBID
Civil Sidewalks
District
Identity Administration Contingency Total
Y1 $ 1,450,000 $ 308,000 $ 330,000 $ 114,753 $ 2,202,753 Y2 $ 1,522,500 $ 323,400 $ 346,500 $ 120,491 $ 2,312,891 Y3 $ 1,598,625 $ 339,570 $ 363,825 $ 126,515 $ 2,428,535 Y4 $ 1,678,556 $ 356,549 $ 382,016 $ 132,841 $ 2,549,962 Y5 $ 1,762,484 $ 374,376 $ 401,117 $ 139,483 $ 2,677,460 Notes:
• Assumes a possible 5% maximum yearly increase on all budget items, if approved annually by the District Management Corporation Board of Directors • Any accrued interest or delinquent payments will be expended in the above categories.

EXHIBIT A
Section 4
Assessment Methodology
The proposed Downtown Santa Barbara CBID is a property-based special benefit assessment district being established pursuant to the Santa Barbara local enabling ordinance as well as Section 36600 of the California Streets and Highway Code. Due to the special benefit nature of assessments levied within a CBID, program costs are to be distributed amongst all identified specially benefited properties based on the proportional amount of special program benefits each property is expected to derive from the assessments collected.

The state constitution refers to the requirement that relative benefit received from CBID funded programs and activities be used to determine the amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be received.

General vs. Special Benefits
As provided by Proposition 218, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. “Special Benefit” as defined by the California State Constitution, Article XIII (d), means “a particular and distinct benefit over and above general benefits conferred on real property located in the District or to the public at large.” For the purposes of this analysis, “General Benefits” are benefits provided within Downtown Santa Barbara District that are not special in nature, are not "particular and distinct" and are not over and above the benefits that other city parcels receive.

General benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. “At large” means not limited to any person and means all members of the public - including those who live, work, and shop within the district, and not simply transient visitors.

The property uses within the boundaries of the proposed Downtown Santa Barbara CBID which will receive special benefits from CBID funded programs and services are currently a mix of retail, service, office, religious, residential, public visitor related, cultural and parking.

Services, programs and improvements provided by the Downtown Santa Barbara CBID are primarily designed to provide special benefits to identified parcels within the boundaries of the District.

Parcels that receive the special benefit programs, services and improvements outlined in this Management District Plan will attract more customers, employees, tenants, and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales transactions, occupancies, and rental income, and for future residents, make Downtown Santa Barbara District more walkable, attractive and livable. These benefits are particular and distinct in that they are not provided to non-assessed parcels within or outside of the

EXHIBIT A
District. Because these programs, services and improvements will only be provided to each individual assessed parcel within the Downtown Santa Barbara CBID boundaries, these programs, services, and improvements will constitute "special benefits.” Existing City of Santa Barbara services will not be replaced or duplicated by the Downtown Santa Barbara CBID funded services. The purpose of this District is to fund supplemental programs, improvements, and services within the Downtown Santa Barbara District boundaries above and beyond what is currently being funded either via normal tax supported methods or other funding sources. The assessments to be levied on parcels within the Downtown Santa Barbara CBID are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased commercial property rental income and improved District identity. No CBID funded services, activities or programs will be provided beyond the Downtown Santa Barbara District CBID boundaries.

While every attempt is made to provide CBID services and programs to confer benefits only to those identified assessed parcels within the District, the California State Constitution, Article XIII D, was added via Proposition 218 to provide that general benefits exist, either by design or unintentionally, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the District, or “spillover” onto parcels surrounding the District, or to the public at large who might be passing through the District with no intention of transacting business or residing within the District or interest in the District itself. Empirical assessment engineering analysis throughout California has found that general benefits within a given similar special benefit district tend to range from 1-5% of the total costs.

There are three methods that have been used by the Downtown Santa Barbara CBID Assessment Engineer for determining general and special benefit values within assessment districts:

1. The parcel-by-parcel allocation method

2. The program/activity line-item allocation method, and

3. The composite district overlay determinant method.

A majority of PBIDs and CBIDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which will be used for this CBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit; general benefit to assessed parcels within the District, general benefit to the public at large within the District, and general benefit to parcels outside the District.

Downtown Santa Barbara CBID Programs and Improvements
The total special and general benefit program activities and budget allocations that will be provided to each individual parcel assessed in the proposed Downtown Santa Barbara CBID are shown in the chart below:

EXHIBIT A
Total Year 1 – 2024 Special + General Benefit Costs

Category of Special
Benefit Services

Year 1
Annual Amount
(assessments to fund
special benefits)
Year 1
NonAssessment
Costs (general
benefits ratio)
Year 1
Total Costs
(special and
general
benefits)
% of Total
Civil Sidewalks $1,450,000 $17,981 $1,467,981 66%
District
Identity/Placemaking
$308,000 $15,734 $323,734 14%
Administration $330,000 $8,991 $338,991 15%
Contingency $114,753 $2,248 $117,001 5%
Total $2,202,753 $44,954 $2,247,707 100%

All program costs associated with general benefits will be derived from sources or credits other than CBID assessments. Sample “other” revenue sources can be derived from special events, grants, volunteer hours and must simply equal a total of $ 44,954 per year which would equal the general benefit cost of 2% of the computed total CBID cost $2,202,753 from the table above. Here, program costs are spread among property variables that are common to each parcel include linear frontage, lot or parcel size and building square footage, and residential condominium parcels and benefit zone. Assessed valuation cannot be used as the basis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations. We must therefore spread the assessments among the consistent factors of each parcel, based upon 2023 data.

Proposed First Year Downtown Santa Barbara District CBID Budget Category of Services Percentage of budget 1st Year Allocation (rounded off)
Civil Sidewalks 66% $1,450,000
District Identity and Placemaking 14% $308,000
Administration 15% $330,000
Contingency/Reserve 5% $114,753
Total 1st year Budget 100% $2,202,753

Annual Costs per property variable and Benefit Zone
Property Variable Benefit Zone 1 Benefit Zone 2
Building Square Footage $0.22 $0.16
Lot size $0.18 $0.13
Linear Frontage $6.00 $4.50
Residential Condos
Unit Square Foot
$0.22 $0.22

EXHIBIT A
Explanation of Difference in Benefit Zone Assessments:

Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along State Street, the west side of Anacapa Street and the east side of Chapala Street, which represents the core area of the District. Benefit Zone 1 properties are the historic core of Downtown Santa Barbara’s District dating back almost 90 years and built around State Street. The individual parcels being assessed include high quality retail, restaurants, services, civic buildings, parking lots and structures, residential, office, hotel and residential condos and apartments. These parcels will benefit the most from the CBID special benefit services, therefore their assessments have been set to fund the costs of services to these parcels.

Benefits Zone 2 parcels represent the parcels on the east side of Anacapa Street from Sola Street to Highway 101. The predominant uses of Benefit Zone 2 parcels are office space, the County Administration center, various office and retail and other commercial uses. Since they will be getting services 5 out of 7 days per week, their assessments have been reduced to accommodate this weekly schedule and uses. The costs in Benefit Zone 2 are lower than that of Benefit Zone 1 due to the lack of density in this portion of the district and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties with the core areas around State Street and the Funk Zone.

Linear Frontage Defined
Individual parcels will be assessed for all sides of each parcel fronting a public street. Alley frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Civil Sidewalks special benefit services based upon the frequency of services articulated in this plan, linear front footage data was obtained from the County Assessor’s parcel maps.

Building Square Footage Defined
Building square footage is defined as gross building square footage throughout the Downtown Santa Barbara CBID.

Lot Square Footage Defined
Lot square footage is defined as the total amount of area within the borders of the parcel.

The lot square footage of a parcel has been verified by the County Assessor’s parcel maps.

Commercial Condominium Parcels Defined
Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building. Ground floor commercial condominiums will pay 100% of the special benefits for the assessment, based upon which benefit zone they are within.

Current and Future Residential Condominium Unit Parcels Defined Current and future residential condominiums unit square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the

EXHIBIT A
commercial parcels within the Downtown Santa Barbara CBID. Unlike the commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Current and future residential condominium parcels are assessed as a separate category.

These residential condominium individual parcels will be assessed for their unit square footage only at the rate of $0.22 per square foot per year for the first year of the CBID, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the unit square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings as well as legally mandated affordable units due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and landlord have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future apartment buildings can be bought or sold just like commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e., ownership rights), as opposed to renters who only have a possessory interest.

2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due to the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to current and future residential condominium individual assessed parcels since future residential condominium owners have unique expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

EXHIBIT A
Exemptions or Reductions in Rates
Under this Management District Plan and consistent with Proposition 218 and Article XIII (D) of the State Constitution, no parcel receiving special benefits from the establishment of a property assessment district is exempt from payment of the assessment.

The eight hotels in the proposed Downtown CBID, and any other future hotels within the boundaries of the proposed Downtown CBID, shall receive a 15% reduced rate from their gross assessments since they already are paying into the Santa Barbara County Tourism Improvement District, which is another special benefit district whose sole purpose it to market and promote the hotels. The 15% reduced rate is roughly equal to the District Identity and Placemaking portion of the overall CBID budget and that is the justification for their proposed rate from the gross assessments. The hotel reduced rate has been incorporated into the assessment rolls in Section 7 of this plan.

Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the improvement or the maintenance and operation expenses of an improvement or for the cost of property service being provided. Per California Constitution Article XIII D, Section 2(i), “Special Benefit,” means a and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost of the proportional special benefits conferred upon that parcel. Only special benefits are assessable, and these benefits must be separated from any general benefits. Properties are assessed as defined on the County Assessor’s most current parcel maps. The preceding methodology is applied to the database of parcels within the District. The process for compiling the property database includes the following steps:
• A report was generated from data obtained from the Santa Barbara County Tax Assessors office.
• A list of properties to be included within the District is provided in Section 7. • We extracted data from CoStar and a property verification form was mailed to all property owners to correct or confirm their property characteristics.

EXHIBIT A

Parcel Assessment Calculation
The annual assessment method to calculate all parcels for Benefit Zone 1 will be:

Total Linear Frontage x $6.00 per foot
+
Total Building Square footage X $0.22 per sq. ft.
+
Total Lot Size x $0.18 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all parcels for Benefit Zone 2 will be:

Total Linear Frontage x $4.50 per square foot
+
Total Building Square footage x $0.16 per square foot
+
Total Lot Size x $0.13 per square foot
=

TOTAL PARCEL ASSESSMENT

The annual assessment method to
calculate the residential condominiums throughout the district will be:

Total Residential Condo Unit Square footage X $0.22 per square foot =

TOTAL PARCEL ASSESSMENT
Future Development
As a result of continued new development, the Downtown Santa Barbara CBID will experience the addition or subtraction of assessable commercial and residential buildings or the conversion of vacant parcels into new commercial and residential units. The Management District Plan assessment methodology will reflect any and all land use changes in the District with annual adjustments being submitted to the City, as these assessment calculations, and property variable alterations occur. Undeveloped parcels within the boundaries of the proposed Downtown CBID shall pay only for linear frontage and lot size assessments due to the lack of building square footage on the parcel. When that parcel is redeveloped, the building assessments will be levied on that parcel as soon as a certificate of occupancy has been issued to that owner, by the City of Santa Barbara.

Maximum Annual Assessment Adjustments:

Assessments may be subject to annual increases not to exceed 5% per year. Increases will be determined by the CBID District Management Corporation and will vary between 0% and 5% in any given year. The maximum the assessments may be increased is 5% over the previous fiscal year’s base assessments. The absence of increase in any given year does not

EXHIBIT A
give the District Management Corporation the authority to accumulate increases above 5% in any successive year. The following projections illustrate a potential 5% annual increase.

Maximum Assessments by Property Variable
Projected Assessments- Benefit Zone 1
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft. Condo Sq. Ft.

Y1 $ 0.180 $ 6.000 $ 0.220 $ 0.220
Y2 $ 0.189 $ 6.300 $ 0.231 $ 0.231
Y3 $ 0.198 $ 6.615 $ 0.243 $ 0.243
Y4 $ 0.208 $ 6.946 $ 0.255 $ 0.255
Y5 $ 0.219 $ 7.293 $ 0.267 $ 0.267
Projected Assessments- Benefit Zone 2
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft. Condo Sq. Ft.

Y1 $ 0.130 $ 4.500 $ 0.160 $ 0.220
Y2 $ 0.137 $ 4.725 $ 0.168 $ 0.231
Y3 $ 0.143 $ 4.961 $ 0.176 $ 0.243
Y4 $ 0.150 $ 5.209 $ 0.185 $ 0.255
Y5 $ 0.158 $ 5.470 $ 0.194 $ 0.267

Government Assessments
The Downtown Santa Barbara CBID Management Plan assumes that the any public or taxexempt parcels shall pay into the district in proportion to the assessments paid for services.

The County and City owned properties shall be assessed for two property variables including linear frontage and lot size. Buildings and Parking structures owned and operated by the City of Santa Barbara as well as buildings owned by the County shall not pay assessments on building square footage since the CBID will not be marketing and promoting these buildings to the public. Their assessments will primarily be used to fund the Civil Sidewalks/Safety and Beautification special benefit services from which they will benefit.

EXHIBIT A
APN Legal Owner Benefit Zone Site Address Annual Assessment Percent 029-291-020 CITY OF SANTA BARBARA 2 100-144 E CARRILLO ST $4,872.79 0.22% 037-092-037 CITY OF SANTA BARBARA 1 20 E DE LA GUERRA ST $21,864.18 0.99% 037-132-035 CITY OF SANTA BARBARA 1 POBOX 1990 $1,127.82 0.05% 037-132-036 CITY OF SANTA BARBARA 1 621 ANACAPA ST $11,617.20 0.53% 037-132-038 CITY OF SANTA BARBARA 1 621 ANACAPA ST $2,708.76 0.12% 037-173-047 CITY OF SANTA BARBARA 1 POBOX 1990 $240.00 0.01% 037-173-049 CITY OF SANTA BARBARA 1 POBOX 1990 $342.00 0.02% 037-173-055 CITY OF SANTA BARBARA 1 523 ANACAPA ST $16,052.22 0.73% 037-252-011 CITY OF SANTA BARBARA 1 11 W GUTIERREZ ST $11,534.58 0.52% 039-181-019 CITY OF SANTA BARBARA 1 $14,887.26 0.68%
039-181-020 CITY OF SANTA BARBARA 1 $2,081.52 0.09%
039-183-046 CITY OF SANTA BARBARA 1 1221 ANACAPA ST $8,598.06 0.39% 039-231-034 CITY OF SANTA BARBARA 1 $10,388.34 0.47%
039-232-002 CITY OF SANTA BARBARA 1 40 E ANAPAMU ST $13,662.06 0.62% 039-232-019 CITY OF SANTA BARBARA 1 1125 ANACAPA ST $10,214.40 0.46% 039-281-041 CITY OF SANTA BARBARA 1 9 W FIGUEROA ST $14,441.70 0.66% 039-282-033 CITY OF SANTA BARBARA 1 $2,178.72 0.10%
039-282-034 CITY OF SANTA BARBARA 1 $4,023.36 0.18%
039-321-045 CITY OF SANTA BARBARA 1 920 CHAPALA ST $612.42 0.03% 039-321-047 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $10,525.92 0.48% 039-321-048 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $1,121.58 0.05% 039-321-051 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $853.56 0.04% 039-321-054 CITY OF SANTA BARBARA 2 $468.00 0.02%
039-321-055 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $408.60 0.02% 039-321-056 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $127.98 0.01% 039-322-052 CITY OF SANTA BARBARA 1 916 STATE ST $14,238.48 0.65% Total $179,191.51 8.13%
029-121-020 COUNTY OF SANTA BARBARA 2 1226 ANACAPA ST $ 1,889.66 0.09% 029-121-022 COUNTY OF SANTA BARBARA 2 105 E ANAPAMU ST $ 17,012.19 0.77% 029-161-001 COUNTY OF SANTA BARBARA 2 1120 ANACAPA ST $ 34,949.55 1.59% 029-211-025 COUNTY OF SANTA BARBARA 2 123 E CARRILLO ST $ 6,343.39 0.29% 039-232-020 COUNTY OF SANTA BARBARA 1 1130 STATE ST $ 7,357.20 0.33% Total $ 67,551.99 3.07%
The Downtown Santa Barbara CBID Management Plan assumes that any public or tax-exempt parcels shall pay into the CBID in proportion to the assessments paid for their specific special benefit services. There are currently many City and County properties in the proposed Downtown Santa Barbara CBID. The services these publicly owned parcel will be receiving are predominantly based upon the Civil Sidewalks and Administrative services in the budget.

Since their buildings will not be marketed and promoted by the District Identify services in the CBID, their building square footage will not be assessed by the CBID plan.

Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as

EXHIBIT A
20 years and shall not exceed 20 years. State law and the local enabling ordinance permit this annual disestablishment of the District based upon petition and vote of the property owners. The threshold needed to trigger the balloting for the formation of the district is the same as the process for disestablishment of the district.

Time and Manner for Collecting Assessments
The Downtown Santa Barbara CBID assessments will appear as a separate line item on annual property tax bills prepared by the Santa Barbara County Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. Any delinquent assessments owed for the first year will be added to the property tax roll for the following year together with any applicable interest and penalties. The “property owner” means any person shown as the owner/taxpayer on the last equalized assessment roll or otherwise known to be the owner/taxpayer by the City. During the first year of operation (2025), the City shall be the billing agency and mail ballots directly to the CBID property owners in late 2024 to fund the services outlined in this plan.

Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year’s budget. Assessments will be set annually. Revenues from delinquent accounts may be expended in the year they are received.

Disestablishment
California Streets and Highways Code section 36670 as well as the local CBD enabling ordinance provides for the disestablishment of a District. Provisions for annual disestablishment of the District are provided for in the local enabling ordinance. Property owners dissatisfied with the results, management or quality of the services may petition the City Council to disestablish the District, in the same method in which they petitioned the City Council to establish it. The same petition threshold needed to establish the District will also be needed to trigger a disestablishment of the District on an annual basis.

Section 36670 of the State Streets and Highway Code states:
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

Unexpended surplus funds will be returned to property owners based upon each property owner’s percentage contribution to the previous fiscal year’s assessments.

EXHIBIT A
Governance
Pursuant to Section 36650 of the California Streets and Highway Code, a District Management Corporation or Owners’ Association will review District budgets and policies annually within the limitations of the Management District Plan. The Management Corporation must file Annual Reports with the City of Santa Barbara and will oversee the day-to-day implementation of services as defined in the Management District Plan. “Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway. Code § 36612.) A new public benefit non-profit corporation (501c3) will be established once the district has been approved by the property owners and they will serve in the capacity of the Owners Association to run the day-to-day operations of the district. The new non-profit public benefit corporation shall enter into an agreement with the City of Santa Barbara to administer the new Downtown CBID and to adhere to the open meeting and open records provisions of the Brown Act and Public Records Act. The contract shall be entered into by both parties as soon as the Resolution of Formation has been adopted by the City Council, expected sometime in the Fall of 2024.

EXHIBIT A
Section 5
District Rules and Regulations and Governance
There are no specific rules and regulations prescribed for the proposed Downtown Santa Barbara Community Benefit Improvement District Management Corporation except that it will adhere to the open meeting and open records provisions of the Ralph M. Brown Act and will seek to be as open and transparent to the CBID assesses, and the public at large as is reasonably possible.

Pursuant to Article V and Section 36650 of the California Streets and Highway Code, a District Management Corporation or Owners’ Association, will review District budgets and policies annually within the limitations of the Management District Plan. The Management Corporation will file Annual Reports with the City of Santa Barbara and will oversee the dayto-day implementation of services as defined in the Management District Plan.

Section 6
Implementation Timetable
The Downtown Santa Barbara CBID is expected to be established and begin assessing benefiting parcels as of the first quarter of calendar year 2024. Due to the timing of revenue collection by the City of Santa Barbara (for the first year of operation) and the need to establish the contract between the Owners’ Association and the City of Santa Barbara, implementation of the Management District Plan and the delivery of services is scheduled to commence in or around the winter of 2025. The first-year billings will be issued by the City of Santa Barbara. Thereafter, in years 2 – 5, the CBID assessments will show up on the annual property tax bill.

EXHIBIT A
Section 7
Assessment Roll of Properties
APN Annual Assessment
029-071-001 $ 2,750.31
029-071-013 $ 6,967.88
029-071-014 $ 1,334.96
029-121-001 $ 7,594.17
029-121-020 $ 1,889.66
029-121-022 $ 17,012.19
029-161-001 $ 34,949.55
029-211-001 $ 3,585.48
029-211-010 $ 2,197.97
029-211-011 $ 578.16
029-211-012 $ 528.56
029-211-014 $ 1,609.56
029-211-015 $ 765.69
029-211-020 $ 646.02
029-211-024 $ 4,899.52
029-211-025 $ 6,343.39
029-211-026 $ 5,500.60
029-291-002 $ 4,964.45
029-291-018 $ 7,351.99
029-291-020 $ 4,872.79
029-291-022 $ 2,976.39
029-291-024 $ 1,479.23
029-410-001 $ 1,377.04
029-410-002 $ 722.69
029-410-003 $ 463.17
029-410-004 $ 520.45
029-410-005 $ 783.53
029-410-006 $ 1,063.80
029-410-007 $ 409.70
029-410-008 $ 681.68
029-410-009 $ 856.94
029-410-010 $ 331.65
029-410-012 $ 626.34
029-410-013 $ 978.47
029-490-001 $ 3,935.86
029-490-002 $ 252.59
029-490-003 $ 1,181.60
029-490-004 $ 176.00
029-490-005 $ 297.00
031-011-001 $ 15,493.75
031-011-014 $ 7,378.26
031-081-001 $ 1,684.76
031-081-002 $ 1,381.97
031-081-012 $ 3,393.24
031-081-013 $ 1,950.57
031-081-014 $ 5,181.64
031-081-015 $ 3,129.85
031-081-016 $ 1,083.37
031-081-017 $ 812.94
031-151-017 $ 12,438.29
031-151-020 $ 8,983.00
031-201-021 $ 1,101.18
031-201-022 $ 1,408.11
031-201-023 $ 1,083.00
031-201-026 $ 2,201.69
031-201-029 $ 3,891.19
031-201-031 $ 3,900.19
031-271-001 $ 1,656.69
031-271-016 $ 1,559.57
031-271-017 $ 1,102.78
031-271-018 $ 1,909.38
031-271-020 $ 2,028.24
031-271-021 $ 773.88
031-271-022 $ 916.06
031-271-023 $ 792.55
031-271-032 $ 2,808.54
031-271-035 $ 2,173.87
031-331-001 $ 2,106.32
031-331-019 $ 3,077.50
031-331-022 $ 2,273.62
031-331-023 $ 1,895.30
031-331-024 $ 2,378.71
031-540-001 $ 639.98
031-540-002 $ 582.56
031-540-003 $ 629.20
031-540-004 $ 639.98
031-540-005 $ 660.00
031-540-006 $ 443.74
031-540-007 $ 399.30
031-540-008 $ 827.64
031-540-009 $ 458.18
031-540-010 $ 499.66
031-540-011 $ 197.19
037-052-003 $ 1,327.84
037-052-006 $ 4,366.86
037-052-010 $ 3,242.76
037-052-020 $ 7,696.56
037-052-021 $ 10,394.86
037-052-022 $ 1,343.88
037-052-024 $ 16,928.86
037-052-026 $ 2,155.74
037-052-027 $ 6,687.30
037-052-032 $ 2,776.92
037-052-033 $ 22,019.08
037-092-001 $ 8,031.72

EXHIBIT A
037
-092-009 $ 764.42
037-092-010 $ 3,289.94
037-092-013 $ 6,393.82
037-092-014 $ 592.70
037-092-015 $ 1,227.54
037-092-016 $ 4,333.40
037-092-017 $ 1,268.46
037-092-018 $ 1,064.34
037-092-019 $ 818.38
037-092-020 $ 951.64
037-092-021 $ 1,466.54
037-092-024 $ 969.36
037-092-025 $ 935.82
037-092-026 $ 1,180.76
037-092-027 $ 1,137.48
037-092-028 $ 1,033.50
037-092-029 $ 1,553.52
037-092-034 $ 545.88
037-092-036 $ 21,363.42
037-092-037 $ 21,864.18
037-131-001 $ 6,076.02
037-131-002 $ 2,938.28
037-131-005 $ 858.84
037-131-006 $ 918.74
037-131-009 $ 1,075.62
037-131-010 $ 2,878.10
037-131-012 $ 669.24
037-131-013 $ 1,832.10
037-131-014 $ 582.06
037-131-015 $ 580.28
037-131-016 $ 537.06
037-131-017 $ 521.76
037-131-018 $ 509.44
037-131-019 $ 4,034.28
037-131-020 $ 13,740.74
037-131-021 $ 15,222.26
037-131-022 $ 6,836.32
037-131-023 $ 11,883.66
037-132-001 $ 2,770.62
037-132-017 $ 887.12
037-132-019 $ 8,749.82
037-132-025 $ 2,282.98
037-132-026 $ 1,664.58
037-132-027 $ 1,602.96
037-132-028 $ 2,208.14
037-132-030 $ 4,545.78
037-132-031 $ 6,765.60
037-132-033 $ 24,403.00
037-132-035 $ 1,127.82
037-132-036 $ 11,617.20
037-132-037 $ 2,525.82
037-132-038 $ 2,708.76
037-171-001 $ 3,666.34
037-171-004 $ 6,528.50
037-171-005 $ 2,085.16
037-171-006 $ 1,622.12
037-171-007 $ 2,974.90
037-171-008 $ 8,145.58
037-171-009 $ 1,945.06
037-171-010 $ 1,300.86
037-171-011 $ 5,200.00
037-172-002 $ 1,667.36
037-172-003 $ 1,827.00
037-172-004 $ 2,182.52
037-172-005 $ 1,750.00
037-172-006 $ 3,309.64
037-172-009 $ 1,826.56
037-172-01 $ 14,567.60
037-172-010 $ 1,686.86
037-172-011 $ 10,879.72
037-172-012 $ 3,286.16
037-173-001 $ 2,506.98
037-173-003 $ 4,642.00
037-173-004 $ 909.16
037-173-009 $ 3,897.70
037-173-015 $ 3,261.08
037-173-016 $ 1,694.48
037-173-020 $ 7,079.92
037-173-021 $ 1,139.88
037-173-025 $ 820.18
037-173-026 $ 6,707.60
037-173-027 $ 734.10
037-173-028 $ 1,096.66
037-173-037 $ 4,075.76
037-173-041 $ 9,724.80
037-173-045 $ 3,645.82
037-173-046 $ 886.78
037-173-047 $ 240.00
037-173-049 $ 342.00
037-173-051 $ 3,320.84
037-173-052 $ 1,919.92
037-173-053 $ 279.54
037-173-055 $ 16,052.22
037-211-002 $ 5,597.76
037-211-003 $ 7,297.84
037-211-004 $ 328.08
037-211-005 $ 1,568.16
037-211-006 $ 2,233.36
037-211-007 $ 1,128.00
037-211-008 $ 1,073.12
037-211-009 $ 1,087.44
037-211-010 $ 1,093.40
037-211-011 $ 1,637.40
037-211-012 $ 1,602.84
037-211-015 $ 2,088.78
037-211-016 $ 1,804.32
037-211-017 $ 1,080.68
037-211-018 $ 2,931.76

EXHIBIT A
037
-211-019 $ 7,371.76
037-211-021 $ 2,544.12
037-211-022 $ 2,410.88
037-211-026 $ 4,216.22
037-211-027 $ 8,508.64
037-211-028 $ 3,157.84
037-211-029 $ 3,134.82
037-211-031 $ 10,238.52
037-211-032 $ 1,716.72
037-211-033 $ 1,978.64
037-211-034 $ 432.40
037-211-035 $ 1,778.80
037-211-036 $ 1,778.80
037-212-001 $ 2,567.88
037-212-002 $ 414.30
037-212-003 $ 3,114.24
037-212-004 $ 4,799.88
037-212-008 $ 2,072.04
037-212-010 $ 1,847.82
037-212-011 $ 2,625.56
037-212-012 $ 2,232.18
037-212-013 $ 1,307.84
037-212-021 $ 4,954.56
037-212-022 $ 7,701.12
037-212-023 $ 3,193.08
037-212-024 $ 2,862.58
037-212-025 $ 7,331.50
037-212-026 $ 733.66
037-212-027 $ 1,596.30
037-212-028 $ 660.16
037-212-030 $ 4,545.30
037-212-032 $ 1,052.34
037-212-033 $ 764.40
037-212-034 $ 4,270.90
037-212-035 $ 6,076.38
037-251-003 $ 13,153.80
037-252-007 $ 4,321.68
037-252-008 $ 5,870.18
037-252-011 $ 11,534.58
037-254-003 $ 811.44
037-254-004 $ 1,750.16
037-254-005 $ 3,074.58
037-254-006 $ 1,856.10
037-254-007 $ 1,844.40
037-254-014 $ 7,055.08
037-254-016 $ 3,671.40
037-254-019 $ 8,705.06
037-254-020 $ 20,443.16
037-320-001 $ 451.74
037-320-002 $ 272.66
037-320-003 $ 331.94
037-320-004 $ 687.66
037-320-005 $ 477.76
037-320-006 $ 530.68
037-320-007 $ 319.60
037-320-008 $ 370.40
037-320-009 $ 308.16
037-400-001 $ 45,498.48
037-400-002 $ 133,646.48
037-400-003 $ 21,030.54
037-400-004 $ 5,249.82
037-400-006 $ 366.30
037-400-007 $ 19,483.42
037-400-008 $ 4,831.50
037-400-009 $ 2,593.12
037-400-010 $ 1,918.68
037-400-011 $ 6,004.90
037-400-012 $ 18,382.80
037-400-013 $ 3,249.30
037-400-014 $ 23,361.20
037-400-015 $ 16,232.36
037-400-016 $ 2,598.36
037-400-018 $ 5,834.06
037-400-019 $ 269.70
037-450-001 $ 259.38
037-450-002 $ 246.62
037-450-003 $ 246.62
037-450-004 $ 250.36
037-450-005 $ 263.34
037-450-006 $ 249.04
037-450-007 $ 249.04
037-450-008 $ 249.04
037-450-009 $ 249.04
037-450-010 $ 251.46
037-450-011 $ 251.46
037-450-012 $ 188.10
037-450-013 $ 195.58
037-450-014 $ 198.00
037-450-015 $ 365.64
037-450-016 $ 365.64
037-450-017 $ 360.80
037-450-019 $ 1,264.40
037-450-022 $ 996.38
037-450-023 $ 1,477.88
037-450-024 $ 1,518.58
037-480-001 $ 7,778.96
037-480-002 $ 912.18
037-480-003 $ 4,049.16
039-131-002 $ 4,104.00
039-131-005 $ 1,012.12
039-131-006 $ 1,700.00
039-131-008 $ 2,272.74
039-131-009 $ 1,153.78
039-131-010 $ 1,464.00
039-131-011 $ 1,408.00
039-131-012 $ 836.40
039-131-013 $ 851.36
039-131-014 $ 836.40

EXHIBIT A
039
-131-015 $ 1,371.86
039-131-017 $ 2,229.54
039-131-018 $ 1,873.20
039-131-021 $ 20,747.50
039-131-022 $ 24,003.24
039-132-001 $ 5,788.00
039-132-002 $ 1,194.96
039-132-003 $ 1,214.04
039-132-004 $ 2,119.86
039-132-005 $ 2,314.94
039-132-006 $ 1,718.94
039-132-007 $ 1,550.38
039-132-008 $ 2,442.46
039-132-009 $ 1,915.16
039-132-010 $ 2,701.66
039-132-011 $ 3,739.74
039-132-015 $ 8,893.80
039-133-001 $ 2,972.70
039-133-002 $ 3,017.18
039-133-005 $ 3,194.08
039-133-007 $ 2,092.62
039-133-008 $ 1,758.98
039-133-009 $ 2,749.70
039-133-010 $ 1,848.54
039-133-011 $ 5,449.56
039-133-013 $ 5,340.46
039-133-014 $ 5,807.04
039-181-002 $ 2,451.78
039-181-018 $ 4,409.30
039-181-019 $ 14,887.26
039-181-020 $ 2,081.52
039-182-001 $ 10,281.06
039-182-002 $ 2,658.92
039-182-003 $ 12,192.46
039-182-004 $ 1,088.30
039-182-005 $ 5,921.90
039-182-008 $ 2,947.24
039-182-016 $ 7,171.46
039-182-017 $ 2,360.00
039-182-018 $ 4,179.78
039-182-019 $ 3,929.92
039-182-021 $ 2,957.02
039-183-001 $ 2,866.08
039-183-005 $ 1,185.94
039-183-006 $ 2,928.60
039-183-007 $ 3,687.12
039-183-018 $ 1,156.42
039-183-021 $ 1,270.76
039-183-026 $ 2,404.96
039-183-027 $ 3,583.40
039-183-028 $ 5,616.48
039-183-031 $ 5,723.76
039-183-035 $ 3,021.86
039-183-040 $ 5,941.86
039-183-041 $ 1,680.90
039-183-045 $ 42,054.82
039-183-046 $ 8,598.06
039-183-053 $ 2,341.88
039-183-054 $ 6,111.54
039-231-001 $ 2,607.44
039-231-002 $ 5,650.76
039-231-003 $ 3,616.04
039-231-004 $ 3,496.10
039-231-012 $ 1,956.08
039-231-013 $ 4,430.28
039-231-014 $ 2,131.16
039-231-015 $ 1,523.50
039-231-016 $ 2,458.30
039-231-017 $ 2,303.60
039-231-018 $ 1,306.66
039-231-019 $ 1,830.04
039-231-020 $ 680.60
039-231-021 $ 3,067.12
039-231-030 $ 4,592.52
039-231-034 $ 10,388.34
039-231-035 $ 13,819.90
039-231-037 $ 42,539.02
039-231-038 $ 256.56
039-232-002 $ 13,662.06
039-232-009 $ 35,054.20
039-232-010 $ 4,722.42
039-232-018 $ 6,337.86
039-232-019 $ 10,214.40
039-232-020 $ 7,357.20
039-232-021 $ 2,020.06
039-281-007 $ 4,079.66
039-281-008 $ 1,705.48
039-281-012 $ 2,271.64
039-281-013 $ 1,532.76
039-281-014 $ 1,383.46
039-281-015 $ 1,775.08
039-281-016 $ 3,158.34
039-281-017 $ 1,151.84
039-281-018 $ 1,101.96
039-281-019 $ 1,830.78
039-281-020 $ 949.88
039-281-028 $ 2,642.34
039-281-029 $ 3,594.70
039-281-032 $ 7,535.00
039-281-040 $ 4,348.30
039-281-041 $ 14,441.70
039-281-043 $ 769.96
039-281-044 $ 1,134.04
039-281-045 $ 22,412.32
039-282-001 $ 11,337.26
039-282-006 $ 9,853.00
039-282-009 $ 7,366.64
039-282-012 $ 5,329.08

EXHIBIT A
039
-282-014 $ 9,426.24
039-282-015 $ 1,003.64
039-282-019 $ 1,028.18
039-282-020 $ 1,147.98
039-282-022 $ 713.46
039-282-024 $ 5,255.20
039-282-026 $ 3,428.34
039-282-027 $ 2,582.50
039-282-029 $ 6,837.08
039-282-031 $ 4,258.50
039-282-032 $ 1,717.68
039-282-033 $ 2,178.72
039-282-034 $ 4,023.36
039-282-035 $ 11,491.24
039-282-036 $ 6,476.08
039-321-002 $ 5,971.70
039-321-003 $ 1,455.18
039-321-004 $ 1,837.24
039-321-005 $ 2,579.86
039-321-006 $ 9,832.60
039-321-007 $ 2,577.62
039-321-01 $ 21,560.76
039-321-015 $ 6,292.80
039-321-019 $ 6,637.68
039-321-028 $ 8,326.30
039-321-029 $ 224.28
039-321-033 $ 20,989.90
039-321-035 $ 1,787.76
039-321-037 $ 2,320.96
039-321-039 $ 3,445.94
039-321-041 $ 2,463.52
039-321-045 $ 612.42
039-321-046 $ 1,276.16
039-321-047 $ 10,525.92
039-321-048 $ 1,121.58
039-321-049 $ 683.60
039-321-050 $ 2,127.38
039-321-051 $ 853.56
039-321-054 $ 468.00
039-321-055 $ 408.60
039-321-056 $ 127.98
039-322-009 $ 10,418.50
039-322-023 $ 1,221.96
039-322-024 $ 1,320.60
039-322-029 $ 6,909.18
039-322-032 $ 6,022.92
039-322-034 $ 3,706.28
039-322-038 $ 2,665.26
039-322-044 $ 10,330.80
039-322-045 $ 5,256.52
039-322-047 $ 4,531.72
039-322-050 $ 14,339.54
039-322-051 $ 725.78
039-322-052 $ 14,238.48
039-530-001 $ 728.50
039-530-002 $ 755.12
039-530-003 $ 758.86
039-530-004 $ 343.86
039-590-002 $ 872.52
039-590-003 $ 522.00
039-590-004 $ 272.40
039-590-005 $ 636.90
039-590-006 $ 664.62
039-590-007 $ 17.38
039-590-008 $ 666.38
039-590-009 $ 668.80
039-590-010 $ 670.34
039-590-011 $ 75.68
039-590-012 $ 705.54
039-590-013 $ 947.10
039-590-014 $ 81.18
039-590-015 $ 47.96
039-590-016 $ 46.20
039-590-017 $ 47.08
039-610-001 $ 161.70
039-610-002 $ 161.26
039-610-003 $ 280.72
039-610-004 $ 242.00
039-610-005 $ 264.66
039-610-006 $ 219.56
039-610-007 $ 234.52
039-610-008 $ 229.46
039-610-009 $ 216.48
039-610-010 $ 205.04
039-610-011 $ 182.16
039-610-012 $ 224.84
039-610-013 $ 177.32
039-610-014 $ 9,612.22
039-610-015 $ 2,020.00
039-610-016 $ 2,156.00
039-610-017 $ 157.74
039-610-018 $ 150.04
039-610-019 $ 158.18
039-610-020 $ 280.72
039-610-021 $ 287.54
039-610-022 $ 264.44
039-610-023 $ 240.68
039-610-024 $ 234.52
039-610-025 $ 231.44
039-610-026 $ 224.40
039-610-027 $ 236.94
039-610-028 $ 407.44
039-610-029 $ 302.06
039-610-030 $ 311.08
039-610-031 $ 170.94
039-610-032 $ 150.04
039-610-033 $ 163.02
039-610-034 $ 237.82

EXHIBIT A
039-610-035 $ 284.46
039-610-036 $ 256.08
039-610-037 $ 216.04
039-610-038 $ 425.70
039-610-039 $ 269.72
039-610-040 $ 279.62
039-630-001 $ 6,308.36
039-630-002 $ 5,857.22
039-650-001 $ 542.34
039-650-002 $ 392.04
039-650-003 $ 235.08
039-650-004 $ 5,350.08
039-650-006 $ 745.56
039-650-007 $ 3,406.64
039-650-008 $ 1,514.02

EXHIBIT A
ATTACHMENT 1

THE DOWNTOWN SANTA BARBARA

COMMUNITY BENEFIT IMPROVEMENT DISTRICT
ASSESSMENT ENGINEER’S
REPORT
Being established pursuant to the City of Santa Barbara’s Community Benefit Ordinance # 5995, Amending the Santa Barbara Municipal Code by adding Chapter 4.45 relating to Community Benefit Districts.

Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates
April 4, 2024
v 2.0

EXHIBIT A
ASSESSMENT ENGINEER’S REPORT
To Whom It May Concern:

I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Downtown Santa Barbara Community Benefit Improvement District ("DSB CBID") being established for a five (5) year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property.

Introduction
This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution to support the special benefit assessments to be levied on real properties within the proposed DSB CBID in the City of Santa Barbara, California being established for a five (5) year term.

The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits conferred on real properties within the proposed DSB CBID.

April 4, 2024
3/31/26

EXHIBIT A
Background
The DSB CBID is a is a property-based benefit assessment district being established for a five (5) year term pursuant to the City of Santa Barbara’s Community Benefit Ordinance # 5995, amending the Santa Barbara Municipal Code by adding Chapter 4.45 relating to Community Benefit Districts. The Ordinance was modeled after Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 (the “Act”). Due to the special benefit nature of assessments to be levied within the DSB CBID, district program costs are to be distributed amongst all identified benefiting properties based on the proportional amount of special program benefit each property is expected to derive from the assessments levied. Within the Ordinance and the Act, frequent references are made to the concept of relative “benefit” received from assessment funded programs and activities relative to the amount of assessment levied. Only those properties expected to derive special benefits from assessment funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be conferred on each property.

Supplemental Article XIIID Section 4(b) California Constitution Procedures and Requirements
Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the DSB CBID. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution (hereinafter Article XIIID).

Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the DSB CBID, each of these supplemental requirements will be taken into account and addressed in this Report. The key provisions of Article XIIID along with a description of how the DSB CBID complies with each of these provisions are delineated herein. (Note: All section references below pertain to Article XIII D of the California Constitution):

EXHIBIT A
Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed”
Boundaries
The proposed DSB CBID consists of 30 +/- commercial blocks centered primarily along State St generally lying between Santa Barbara St on the northeast, Chapala St on the southwest, Sola St on the northwest and Highway 101 on the southeast. The DSB CBID includes 542 parcels. See the DSB CBID map in Appendix 2 of this Report.

The DSB CBID is generally bounded by:

Zone 1: Core Area:

In general,
On the northwest side: the southern side of Sola Street On the northeast side, the parcels on west side of Anacapa Street On the southwest side, the eastern side of Chapala Street On the southeast side, the north side of Highway 101
Zone 2: In general, all of the parcels on the east side of Anacapa Street from Sola Street on the northeast corner to Highway 101 on the southeast corner.

Benefit Zones
The DSB CBID consists of two benefit zones. Benefit Zone 1 includes all properties not within Zone 2.

Zone 2 includes all district properties northeast of Anacapa between Sola St and Hwy 101. Zone 2 properties will receive approximately 30% less service frequency than Zone 1 (i.e. 5 days of services vs 7 days) and, in turn, will be conferred 30% less special benefits and be assessed at 30% lower assessment rates than Zone 1 properties.

DSB CBID Boundary Rationale
The DSB CBID boundaries are comprised of parcels that showcase an array of high-quality restaurants, retailers, offices, service businesses, hotels, mixed use apartment units and residential condominiums.

Northwestern (“Northern”) Boundary -
The northwestern boundary of the proposed DSB CBID includes all parcels on the southern side of Sola St between parcel 029-071-01 on the east side and parcel 039-131-21 on the west side.

Services will only be provided to the individual assessed parcels within the DSB CBID boundaries; services will not be provided to parcels that are not assessed. No DSB CBID programs and services will be provided north of the northern DSB CBID boundary.

Southwestern (“Western”) Boundary
The southwestern boundary of the proposed DSB CBID includes all parcels on the eastern side of Chapala Street from the intersection of Sola Street and Chapala on the northwest corner, parcel number 039-131-21, then southeasterly to Highway 101 ending at parcel number 037-252-07.

EXHIBIT A
Services will only be provided to the individual assessed parcels within the DSB CBID boundaries; services will not be provided to parcels that are not assessed. No DSB CBID programs and services will be provided west of the southwestern DSB CBID boundary.

Southeastern (“Southern”) Boundary:

The southeastern boundary runs adjacent to Highway 101 between parcel 037-252-07 and 031-331-

22. Services will only be provided to the individual assessed parcels within the DSB CBID boundaries; services will not be provided to parcels that are not assessed. No DSB CBID programs and services will be provided south of the southeastern DSB CBID boundary.

Northeastern (“Eastern”) Boundary
The northeastern boundary of the proposed DSB CBID includes all the parcels fronting the east side of Anacapa Street between Highway 101 and Sola Street as well as those parcels on both sides of Cabrillo between Anacapa Street and Santa Barbara Street.

ZONE 2
Zone 2 will receive 30% less maintenance and security services as compared to Zone 1 parcels in the core area. Zone 2 parcels include all parcels along the east side of Anacapa Street commencing at the northeastern parcel at the intersection of Sola Street and Anacapa Street, parcel number 029-071-01, continuing on the eastern side of Anacapa Street, including all of the parcels ending at parcel number 031-331-22 at Highway 101.

All identified parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Management District Plan and this Assessment Engineer’s Report. All DSB CBID funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the DSB CBID boundaries and none will be provided outside of the DSB CBID. Each assessed parcel within the DSB CBID will proportionately specially benefit from the DSB CBID funded Civil Sidewalks, District Identity & Placemaking, Administration and Contingency as described in more detail under “Work Plan”, beginning on page 11 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents and commercial/residential occupancy rates of parcels and businesses within the DSB CBID by deterring crime, reducing litter and debris and professionally marketing goods and services available within the DSB CBID, all considered necessary in a competitive properly managed contemporary mixed-use business district. All DSB CBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of assessed parcels within the boundaries of the DSB CBID.

EXHIBIT A
A list of all parcels included in the proposed DSB CBID is shown as Appendix 1, attached to this Report with their respective Santa Barbara County assessor parcel number. The boundary of the proposed DSB CBID and parcels within it are shown on the map of the DSB CBID attached as Appendix 2 to this Report.

Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “

QUANTITATIVE BENEFIT ANALYSIS
As stipulated in Article XIIID, assessment district programs and activities confer a combination of general and special benefits, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special benefit” as defined by the Article XIIID means a distinct benefit over and above general benefits conferred on real property located in the district.

The property uses within the boundaries of the DSB CBID that will receive special benefits from DSB CBID funded programs and services are currently an array of high-quality restaurants, retailers, offices, service businesses, hotels, mixed use apartment units and residential condominiums. No parcels within the DSB CBID are zoned solely residential. Services, programs and improvements provided and funded by the DSB CBID are designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the proposed DSB CBID.

The proposed DSB CBID programs, improvements and services and Year 1 – 2025 budget allocation are as follows:

Year 1 – 2025 DSB CBID Special Benefit Cost Allocations (Assessment Revenue Only)

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 65.8267% 13.9825% 14.9813% 5.2095% 100.00%
1 $1,288,471 $273,689 $293,238 $101,970 $1,957,031 88.8601% 2 $161,529 $34,311 $36,762 $12,783 $245,722 11.1399%
TOTAL $1,450,000 $308,000 $330,000 $114,753 $2,202,753 100.00% Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all DSB CBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, DSB CBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, security and aesthetic appeal for patrons, visitors and employees of these parcels within the DSB CBID by deterring crime, reducing litter and debris and professionally marketing

EXHIBIT A
the array of goods and services available within the DSB CBID, all considered necessary in a competitive properly managed contemporary mixed-use business district.

For residential parcels and residential portions of mixed-use parcels within the DSB CBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit from DSB CBID funded programs and services which are designed to improve the cleanliness, security, marketability and livability of these parcels and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the DSB CBID. For these parcels, DSB CBID programs, services and improvements are designed to increase residential rental occupancies and income.

These programs, services and improvements are designed to improve security and aesthetic appeal for tenants, visitors and landlords of these parcels within the DSB CBID by deterring crime, reducing litter and debris and professionally marketing the availability of residential units for rent or sale within the DSB CBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

These benefits are particular and distinct to each and every identified and assessed parcel within the DSB CBID and are not provided to non-assessed parcels outside of the DSB CBID. These programs, services and improvements will only be provided to each individual assessed parcel within the DSB CBID boundaries and, in turn, confer proportionate "special benefits” on each assessed parcel.

In the case of the DSB CBID, the very nature of the purpose of this CBID is to fund supplemental programs, services and improvements to assessed parcels within the DSB CBID boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources.

All benefits derived from the assessments to be levied on assessed parcels within the DSB CBID are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the DSB CBID. No DSB CBID funded services, activities or programs will be provided outside of the DSB CBID boundaries.

While every attempt is made to provide DSB CBID services and programs to confer special benefits only to those identified assessed parcels within the DSB CBID, Article XIIID stipulates that general benefits exist, either by design or unintentional, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the DSB CBID, or “spillover” onto parcels surrounding the DSB CBID, or to the public at large who might be passing through the DSB CBID with no intention of transacting business within the DSB CBID or interest in the DSB CBID itself.

Empirical assessment engineering analysis throughout California has found that general benefits within a given business improvement district tend to range from 2-6% of the total costs. There are three methods that have been used by this Assessment Engineer for determining general and special benefit values within assessment districts:
(1) The parcel-by-parcel allocation method
(2) The program/activity line-item allocation method, and (3) The composite district overlay determinant method.

EXHIBIT A
A majority of PBID type districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used Method #3, the composite district overlay determinant method which will be used for the DSB CBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the DSB CBID, general benefit to the public at large within the DSB CBID and general benefit to parcels immediately outside the DSB CBID.

General Benefit – Assessed Parcels within the DSB CBID
DSB CBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed DSB CBID parcels and are only provided for the special benefit to each and every assessed parcel within the DSB CBID. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 542 parcels within the DSB CBID are distinct and special and in the case of the DSB CBID, it is projected that there are 0.25% general benefits conferred on these parcels. While this factor can typically range from 0.10% to 1.0%, this high ratio of special benefits to general benefits is because the DSB CBID funded programs and services are specially geared to the unique needs of each parcel within the DSB CBID and are directed specially only to these parcels within the DSB CBID. This concept is further reinforced by the proportionality of special benefits conferred on each parcel within the DSB CBID as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed

0.25% general benefit value on the 542 parcels within the DSB CBID equates to $5,507 (.25% x $2,202,753).

General Benefits – Outside Parcels
While DSB CBID programs and services will not be provided directly to parcels outside the DSB CBID boundaries, it is reasonable to conclude that DSB CBID services (clean and safe) may confer an indirect general benefit on parcels adjacent to the DSB CBID boundaries. An inventory of the DSB CBID boundaries finds that the DSB CBID is immediately surrounded by 102 parcels. Of these 102 parcels, 75 are commercial zoned parcels with commercial uses, 9 are residentially zoned parcels with residential uses and 18 are public/non-profit owned parcels with public/non-profit uses. Assessment Engineering practice has found that for districts such as the DSB CBID that primarily provide clean and safe services, they may have a ”spillover” general benefit on neighboring parcels immediately outside the district.

Typically, a factor of 100% (1.0) is first assigned to assessed parcels within the district, then a factor range from 3% to 6% (0.03 to 0.06) is assigned to commercial zoned and used parcels directly outside the district, then a factor range from 0.5% to 1.5% (0.005 to 0.015) is assigned to residential zoned and used parcels directly outside the district, and finally, a factor range from 0.5% to 1.5% (0.005 to 0.015) is assigned to public and/or non-profit owned and fully occupied parcels directly outside the district.

The 102 parcels directly outside the DSB CBID boundaries can reasonably be assumed to receive some indirect general benefit as a result of DSB CBID funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 542 parcels within the DSB CBID, a benefit factor of 0.05 be attributed to general benefits conferred on the 75 commercial parcels and uses located adjacent to or across the street from assessed parcels within the DSB CBID, a benefit factor of 0.005 be attributed to general benefits conferred on the 9 residential parcels and uses located adjacent to or across the street from assessed parcels within the DSB CBID and, a benefit factor of 0.005 be attributed to general benefits conferred on the 18 publicly owned or non-profit owned parcels and uses located adjacent to or across the street from assessed parcels within the DSB CBID. The cumulative dollar value of this general benefit type equates to $15,812

EXHIBIT A
($15,242 + $366 + $204) as delineated in the following Table:

Parcel Type Quantity Benefit
Factor
Benefit
Units
Benefit
Percent
Benefit
Value
Parcels within DSB CBID 542 1.000 542.00 99.2874% $2,202,753 Commercial parcels outside of DSB CBID 75 0.050 3.75 0.6870% $15,242 Public/non-profit parcels outside of DSB CBID 18 0.005 0.09 0.0165% $366 Residential use parcels outside of DSB CBID 9 0.005 0.05 0.0092% $204 TOTAL 545.89 100.00% $2,218,562
General Benefit - Public At Large
While the DSB CBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed DSB CBID parcels and are only provided for the special benefit to each and every assessed parcel within the DSB CBID, these programs also provide general benefits to the public at large within the DSB CBID.

For districts such as the proposed DSB CBID, assessment Engineering experience in California has found that generally over 95% of people moving about within district boundaries are engaged in business related to assessed parcels and buildings and businesses/residences contained in them within the district, while the public at large “just passing through” is typically 5% or less. Districts with high levels of transit connecting nodes and patrons may have higher levels of general benefits conferred on non-engaged “passers-through”, i.e. the public at large.

Tangible services and improvements such as security, benches and shade trees would confer higher levels of general benefits on the public at large than say steam cleaned sidewalks, planters, decorative pavement and other general district management and operation activities. Typically, a factor range from 3% to 8% (0.03 to 0.08) is assigned to tangible streetscape/sidewalk type services, programs and improvements such as security, benches and shade trees; in turn, a factor range from 0.5% to 1.5% (0.005 to 0.015) is assigned to intangible services, programs and improvements such as sidewalk and pavement cleaning, general landscape improvements and ancillary services such as district management, operations and overhead.

Based on experience curves and the nature of the proposed DSB CBID funded programs and over 30 years of assessment engineering experience, it is the opinion of this Engineer that districtwide general benefit factors for each of the DSB CBID funded special benefit program element costs that most likely provide a general benefit to the public at large are as shown in the Table below. It is noted that these general benefit factors are set low due to the extremely high level of tourist/destination foot traffic that frequents Downtown Santa Barbara versus foot traffic merely passing through or catching public transit to travel to a neighboring or even a distant community. These factors are applied to each program element costs in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $23,256 as delineated in the following Table:

EXHIBIT A

A B C E
Program Element Dollar
Allocation
General
Benefit
Percent
General
Benefit
Factor
General
Benefit Value
(A x C)

CIVIL SIDEWALKS, SAFETY, CLEANLINESS &
BEAUTIFICATION $1,450,000 1.50% 0.015 $21,750
DISTRICT IDENTITY & PLACEMAKING $308,000 0.20% 0.002 $616 ADMINISTRATION & PROGRAM MANAGEMENT $330,000 0.20% 0.002 $660 CONTINGENCY & RESERVE $114,753 0.20% 0.002 $230
TOTAL $2,202,753 $23,256
Composite General Benefit
Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the DSB CBID, on parcels outside the DSB CBID, and on the public at large, equates to $44,575 ($5,507 + $15,812 + $23,256) or 1.9835%. For the purposes of this analysis, the districtwide general benefit factor of 1.9835% will be rounded up to 2% or $44,954.

This leaves a value of 98% assigned to special benefit related costs. The districtwide general benefit value of $44,954 when added to the special benefit value of $2,202,753 (Year 1 – 2025 assessments) equates to a total Year 1 – 2025 program cost of $2,247,707. Remaining costs that are attributed to districtwide general benefits will need to be derived from other non-assessment sources such as grants, underwriting and event proceeds.

The program special benefit related cost allocations of the DSB CBID assessment revenues for Year 1 (2025) are shown in the Table on page 14 of this Report. The projected program special benefit related cost allocations of the DSB CBID assessment revenues for the 5-year DSB CBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

A breakdown of projected special and districtwide general benefits for each year of the 5-year term, assuming a 5% maximum annual assessment rate increase is shown in the following Table:
5-year Special + Districtwide General Benefits
(Assumes 5% max rate increase per year)

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 1 - 2025 1 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,288,471 $26,296 $1,314,767 65.8267% DISTRICT IDENTITY & PLACEMAKING $273,689 $5,585 $279,274 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $293,238 $5,984 $299,222 14.9813% CONTINGENCY & RESERVE $101,970 $2,081 $104,051 5.2095%
SUBTOTAL $1,957,368 $39,946 $1,997,314 100%
2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $161,529 $3,297 $164,826 65.8267%

EXHIBIT A
DISTRICT IDENTITY & PLACEMAKING $34,311 $700 $35,011 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $36,762 $750 $37,512 14.9813% CONTINGENCY & RESERVE $12,783 $261 $13,044 5.2095%
SUBTOTAL $245,385 $5,008 $250,393 100%
1&2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,450,000 $29,593 $1,479,593 65.8267% DISTRICT IDENTITY & PLACEMAKING $308,000 $6,285 $314,285 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $330,000 $6,734 $336,734 14.9813% CONTINGENCY & RESERVE $114,753 $2,342 $117,095 5.2095%
TOTAL YEAR 1 - 2025 $2,202,753 $44,954 $2,247,707 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 2 - 2026 1 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,352,895 $27,611 $1,380,506 65.8267% DISTRICT IDENTITY & PLACEMAKING $287,373 $5,864 $293,237 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $307,900 $6,283 $314,183 14.9813% CONTINGENCY & RESERVE $107,069 $2,185 $109,254 5.2095%
SUBTOTAL $2,055,237 $41,943 $2,097,180 100%
2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $169,605 $3,462 $173,067 65.8267% DISTRICT IDENTITY & PLACEMAKING $36,027 $735 $36,762 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $38,600 $788 $39,388 14.9813% CONTINGENCY & RESERVE $13,422 $274 $13,696 5.2095%
SUBTOTAL $257,654 $5,259 $262,913 100%
1&2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,522,500 $31,073 $1,553,573 65.8267% DISTRICT IDENTITY & PLACEMAKING $323,400 $6,599 $329,999 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $346,500 $7,071 $353,571 14.9813% CONTINGENCY & RESERVE $120,491 $2,459 $122,950 5.2095%
TOTAL YEAR 2 - 2026 $2,312,891 $47,202 $2,360,093 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 3 - 2027 1 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,420,540 $28,992 $1,449,532 65.8267% DISTRICT IDENTITY & PLACEMAKING $301,742 $6,157 $307,899 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $323,295 $6,597 $329,892 14.9813% CONTINGENCY & RESERVE $112,422 $2,294 $114,716 5.2095%
SUBTOTAL $2,157,999 $44,040 $2,202,039 100%
2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $178,085 $3,635 $181,720 65.8267% DISTRICT IDENTITY & PLACEMAKING $37,828 $772 $38,600 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $40,530 $827 $41,357 14.9813% CONTINGENCY & RESERVE $14,093 $288 $14,381 5.2095%
SUBTOTAL $270,536 $5,522 $276,058 100%
1&2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,598,625 $32,627 $1,631,252 65.8267% DISTRICT IDENTITY & PLACEMAKING $339,570 $6,929 $346,499 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $363,825 $7,424 $371,249 14.9813% CONTINGENCY & RESERVE $126,515 $2,582 $129,097 5.2095%
TOTAL YEAR 3 - 2027 $2,428,535 $49,562 $2,478,097 100%

EXHIBIT A

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 4 - 2028 1 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,491,567 $30,442 $1,522,009 65.8267% DISTRICT IDENTITY & PLACEMAKING $316,829 $6,465 $323,294 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $339,460 $6,927 $346,387 14.9813% CONTINGENCY & RESERVE $118,043 $2,409 $120,452 5.2095%
SUBTOTAL $2,265,899 $46,243 $2,312,142 100%
2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $186,989 $3,817 $190,806 65.8267% DISTRICT IDENTITY & PLACEMAKING $39,719 $811 $40,530 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $42,557 $868 $43,425 14.9813% CONTINGENCY & RESERVE $14,798 $302 $15,100 5.2095%
SUBTOTAL $284,063 $5,798 $289,861 100%
1&2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,678,556 $34,259 $1,712,815 65.8267% DISTRICT IDENTITY & PLACEMAKING $356,548 $7,276 $363,824 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $382,017 $7,795 $389,812 14.9813% CONTINGENCY & RESERVE $132,841 $2,711 $135,552 5.2095%
TOTAL YEAR 4 - 2028 $2,549,962 $52,041 $2,602,003 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 5 - 2029 1 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,566,145 $31,964 $1,598,109 65.8267% DISTRICT IDENTITY & PLACEMAKING $332,670 $6,788 $339,458 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $356,433 $7,273 $363,706 14.9813% CONTINGENCY & RESERVE $123,945 $2,529 $126,474 5.2095%
SUBTOTAL $2,379,193 $48,554 $2,427,747 100%
2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $196,338 $4,008 $200,346 65.8267% DISTRICT IDENTITY & PLACEMAKING $41,705 $852 $42,557 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $44,685 $911 $45,596 14.9813% CONTINGENCY & RESERVE $15,538 $317 $15,855 5.2095%
SUBTOTAL $298,266 $6,088 $304,354 100%
1&2 CIVIL SIDEWALKS, SAFETY, CLEANLINESS & BEAUTIFICATION $1,762,483 $35,972 $1,798,455 65.8267% DISTRICT IDENTITY & PLACEMAKING $374,375 $7,640 $382,015 13.9825% ADMINISTRATION & PROGRAM MANAGEMENT $401,118 $8,184 $409,302 14.9813% CONTINGENCY & RESERVE $139,483 $2,846 $142,329 5.2095%
TOTAL YEAR 5 - 2029 $2,677,459 $54,642 $2,732,101 100%

DSB CBID WORK PLAN
Overview
The services, programs and improvements to be funded by the DSB CBID include Civil Sidewalks, District Identity & Placemaking, Administration and Contingency. The property uses within the boundaries of the DSB CBID that will receive special benefits from DSB CBID funded programs, services

EXHIBIT A
and improvements are currently an array of high-quality restaurants, retailers, offices, service businesses, hotels, mixed use apartment units and residential condominiums. Services, programs and improvements provided and funded by the DSB CBID are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the DSB CBID. The varying programmed service levels in each benefit zone are delineated within each work plan element description.

These special benefits are particular and distinct to each and every identified assessed parcel within the DSB CBID and are not provided to non-assessed parcels outside of the DSB CBID. These programs, services and improvements will only be provided to each individual assessed parcel within the DSB CBID boundaries and, in turn, confer proportionate "special benefits” on each assessed parcel.

The very nature of the purpose of the DSB CBID is to fund supplemental programs, services and improvements to assessed parcels within the DSB CBID boundaries above and beyond the base line services provided by the City of Santa Barbara. The City of Santa Barbara does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the DSB CBID are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the DSB CBID. No DSB CBID funded services, activities or programs will be provided outside of the DSB CBID boundaries.

The program special benefit cost allocations of the DSB CBID assessment revenues for Year 1 (2025) are shown in the Table on page 14 of this Report. The projected program special benefit cost allocations of the DSB CBID assessment revenues for the 5-year DSB CBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

WORK PLAN DETAILS
The services to be provided by the DSB CBID (i.e. Civil Sidewalks, District Identity & Placemaking, , Administration and Contingency) are all designed to contribute to the cohesive commercial and residential fabric to ensure economic success and vitality of the DSB CBID. The assessed parcels in the DSB CBID will specially benefit from the DSB CBID programs in the form of increasing commerce and improving economic success and vitality through meeting the DSB CBID goals: to improve security, cleanliness, beautification, landscaping, livability and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel.

Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all DSB CBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, DSB CBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, security and aesthetic appeal for patrons, visitors and employees of these parcels within the DSB CBID by deterring crime, reducing litter and debris and professionally marketing the array of goods and services available within the DSB CBID, all considered necessary in a competitive properly managed contemporary mixed-use business district.

For residential parcels and residential portions of mixed use parcels within the DSB CBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit from DSB CBID funded programs and services which are designed to improve the

EXHIBIT A
cleanliness, security, marketability and livability of these parcels and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the DSB CBID. For these parcels, DSB CBID programs, services and improvements are designed to increase residential rental occupancies and income.

These programs, services and improvements are designed to improve security and aesthetic appeal for tenants, visitors and landlords of these parcels within the DSB CBID by deterring crime, reducing litter and debris and professionally marketing the availability of residential rental units within the DSB CBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

The following programs, services and improvements are proposed by the DSB CBID to specially benefit each and every individually assessed parcel within the DSB CBID boundaries. DSB CBID services, programs and improvements will not be provided to parcels outside the DSB CBID boundary. Assessment funds generated in each benefit zone shall only be used to provide services which specially benefit individual assessed parcels within that benefit zone.

CIVIL SIDEWALKS/SAFETY & CLEANLINESS/BEAUTIFICATION:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Regular sidewalk steam cleaning
• Beautification of the district
• Enhanced trash emptying (over and above city services) • Timely graffiti removal, within 72 hours as necessary • Maintenance of existing and new public spaces that are not part of the City of Santa Barbara Park and Recreation Dept. responsibilities.
• Installation and maintenance of hanging plants, planting flowers throughout the district. • Personnel to manage in-house or contracted maintenance and/or security teams. • Private security or SBPD overtime officers, and homeless outreach workers DISTRICT IDENTITY & PLACEMAKING:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Enhancing the current City holiday and seasonal decorations • Branding of the DSB CBID properties so a positive image is promoted to the public including the development of a new logo.
• Banner programs
• Public art displays
• Public space design and improvements
• Events, 1st Thursday, Craft Beer Festival, Live Art and Wine tour, holiday tree lighting, etc. • Business support, retention services including leasing strategies, special marketing to specific categories of businesses, filling of vacancies.

EXHIBIT A
• Personnel to manage in-house or contracted public relations, web site maintenance or social media contractors.

ADMINISTRATION & PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work, grant writing

CONTINGENCY & RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves
In summary, all DSB CBID funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the DSB CBID boundaries and none will be provided outside of the DSB CBID. Each assessed parcel within the DSB CBID will proportionately specially benefit from Civil Sidewalks, District Identity & Placemaking, Administration and Contingency. These services, programs and improvements are intended to improve commerce, employment, livability, rents and occupancy rates of assessed parcels within the DSB CBID by deterring crime, reducing litter, installing physical improvements and professionally marketing goods, services and spaces available within the DSB CBID, all necessary in a competitive properly managed contemporary mixed-use business district. All DSB CBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of each and every assessed parcel within the boundaries of the DSB CBID.

WORK PLAN BUDGET
Each identified assessed parcel within the DSB CBID will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of DSB CBID funded services provided within each benefit zone. The projected DSB CBID program special benefit (assessments) allocation budget for Year 1 (2025) is shown in the following Table:

DSB CBID Year 1 (2025) Special Benefit Assessment Budget by Zone

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

EXHIBIT A
In order to carry out the DSB CBID programs outlined in the previous section, a Year 1-2025 assessment budget of $2,202,753 is projected. Since the DSB CBID is planned for a 5-year term, projected program costs for future years (Years 2-5) are set at the inception of the DSB CBID. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year DSB CBID term.

Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with The Management District Plan. Detailed annual budgets will be prepared by the Owners’ Association Board and included in the Annual Report for the City Council’s review and approval.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed DSB CBID. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories, based on such cost fluctuations subject to the review and approval by the Owners’ Association Board. Such reallocation will be included in the Annual Report for the approval by the City of Santa Barbara City Council pursuant to the Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category in accordance with The Management District Plan.

A 5-year projected DSB CBID special benefit budget is shown in the following Table:

YEAR 1-5 PROJECTED DSB CBID ASSESSMENT BUDGET SUMMARY (Special Benefits) (Assumes 5% max rate increase per year)
YEAR

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL
% 65.8267% 13.9825% 14.9813% 5.2095% 100.00%
1 1 $1,288,471 $273,689 $293,238 $101,970 $1,957,031
2025 2 $161,529 $34,311 $36,762 $12,783 $245,722
TOTAL $1,450,000 $308,000 $330,000 $114,753 $2,202,753
2 1 $1,352,895 $287,373 $307,900 $107,069 $2,055,237
2026 2 $169,605 $36,027 $38,600 $13,422 $257,654
TOTAL $1,522,500 $323,400 $346,500 $120,491 $2,312,891
3 1 $1,420,540 $301,742 $323,295 $112,422 $2,157,999
2027 2 $178,085 $37,828 $40,530 $14,093 $270,536
TOTAL $1,598,625 $339,570 $363,825 $126,515 $2,428,535
4 1 $1,491,567 $316,829 $339,460 $118,043 $2,265,899
2028 2 $186,989 $39,719 $42,557 $14,798 $284,063
TOTAL $1,678,556 $356,548 $382,017 $132,841 $2,549,962
5 1 $1,566,145 $332,670 $356,433 $123,945 $2,379,193
2029 2 $196,338 $41,705 $44,685 $15,538 $298,266
TOTAL $1,762,483 $374,375 $401,118 $139,483 $2,677,459

EXHIBIT A
The DSB CBID assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and approved by the City of Santa Barbara City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the DSB CBID) shall determine the percentage increase, if any, to the annual assessment, not to exceed 5% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the DSB CBID operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Santa Barbara. No bonds are to be issued in conjunction with the proposed DSB CBID.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewal budget or returned to stakeholders in accordance with City and State Law. DSB CBID assessment funds may be used to pay for costs related to the following DSB CBID renewal term. If the DSB CBID is not renewed or terminated for any reason, unencumbered/unexpended funds will be returned to the property owners in accordance with City and State Law.

Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided.

Each identified assessed parcel within the DSB CBID will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DSB CBID (i.e. Civil Sidewalks, District Identity & Placemaking, Administration and Contingency), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified assessed parcel within the DSB CBID as a whole and the Benefit Zone in which it is located. Larger parcels and those with larger buildings and/or street frontages and/or ones located in Zone 1 are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings and/or street frontages and/or located in Zone 2 and thus, are assigned a greater proportionate degree of assessment program and service costs. The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes.

The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed as an attachment to the Management District Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) is computed by dividing the individual parcel assessment by the total special benefit program related costs.

EXHIBIT A
Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed DSB CBID, they are also considerably less than other options considered by the DSB CBID Formation Advisory Committee. The actual assessment rates for each parcel within the DSB CBID directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”
Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are currently 31 publicly owned parcels within the boundaries of the proposed DSB CBID with 26 owned by the City of Santa Barbara and 5 by the County of Santa Barbara. Each identified and assessable publicly owned parcel and facility within the proposed DSB CBID will proportionately specially benefit as delineated herein from the proposed DSB CBID funded supplemental services, programs and improvements, but differently than privately owned parcels.

For publicly owned parcels and facilities within the proposed DSB CBID, each of these parcels specially benefit from District funded programs services and improvements. The special benefits include cleaner and safer facility entrances and perimeters for their employees, visitors, vendors and other users of these public locations and facilities. Publicly owned parcels and facilities are active components of Downtown Santa Barbara’s identity and fabric.

It is the opinion of this Assessment Engineer that publicly owned parcels and public facilities will not specially benefit to the same extent as privately owned parcels from the proposed DSB CBID funded services, programs and improvements, primarily district identity and placemaking. To offset this special benefit differential, publicly owned parcels with public facilities on them will not be assessed for public building areas located on these parcels but will be assessed for parcel land area and street frontages, the same as privately owned parcels. Publicly owned parcels with non-government uses on them will be assessed for building areas not occupied by government uses and facilities.

It is the opinion of this Assessment Engineer that there is no clear and convincing evidence that publicly owned parcels and public facilities would not receive special benefits except as noted above and thus, will not be exempt from assessments and will be assessed as described above. A listing of each publicly owned parcel and the respective Year 1 assessment within the proposed DSB CBID is shown in the Table below:

EXHIBIT A
APN Legal Owner Benefit Zone Site Address Annual Assessment Percent 029-291-020 CITY OF SANTA BARBARA 2 100-144 E CARRILLO ST $4,872.79 0.22% 037-092-037 CITY OF SANTA BARBARA 1 20 E DE LA GUERRA ST $21,864.18 0.99% 037-132-035 CITY OF SANTA BARBARA 1 POBOX 1990 $1,127.82 0.05% 037-132-036 CITY OF SANTA BARBARA 1 621 ANACAPA ST $11,617.20 0.53% 037-132-038 CITY OF SANTA BARBARA 1 621 ANACAPA ST $2,708.76 0.12% 037-173-047 CITY OF SANTA BARBARA 1 POBOX 1990 $240.00 0.01% 037-173-049 CITY OF SANTA BARBARA 1 POBOX 1990 $342.00 0.02% 037-173-055 CITY OF SANTA BARBARA 1 523 ANACAPA ST $16,052.22 0.73% 037-252-011 CITY OF SANTA BARBARA 1 11 W GUTIERREZ ST $11,534.58 0.52% 039-181-019 CITY OF SANTA BARBARA 1 $14,887.26 0.68%
039-181-020 CITY OF SANTA BARBARA 1 $2,081.52 0.09%
039-183-046 CITY OF SANTA BARBARA 1 1221 ANACAPA ST $8,598.06 0.39% 039-231-034 CITY OF SANTA BARBARA 1 $10,388.34 0.47%
039-232-002 CITY OF SANTA BARBARA 1 40 E ANAPAMU ST $13,662.06 0.62% 039-232-019 CITY OF SANTA BARBARA 1 1125 ANACAPA ST $10,214.40 0.46% 039-281-041 CITY OF SANTA BARBARA 1 9 W FIGUEROA ST $14,441.70 0.66% 039-282-033 CITY OF SANTA BARBARA 1 $2,178.72 0.10%
039-282-034 CITY OF SANTA BARBARA 1 $4,023.36 0.18%
039-321-045 CITY OF SANTA BARBARA 1 920 CHAPALA ST $612.42 0.03% 039-321-047 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $10,525.92 0.48% 039-321-048 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $1,121.58 0.05% 039-321-051 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $853.56 0.04% 039-321-054 CITY OF SANTA BARBARA 2 $468.00 0.02%
039-321-055 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $408.60 0.02% 039-321-056 CITY OF SANTA BARBARA 1 W CANON PERDIDO ST $127.98 0.01% 039-322-052 CITY OF SANTA BARBARA 1 916 STATE ST $14,238.48 0.65% Total $179,191.51 8.13%
029-121-020 COUNTY OF SANTA BARBARA 2 1226 ANACAPA ST $ 1,889.66 0.09% 029-121-022 COUNTY OF SANTA BARBARA 2 105 E ANAPAMU ST $ 17,012.19 0.77% 029-161-001 COUNTY OF SANTA BARBARA 2 1120 ANACAPA ST $ 34,949.55 1.59% 029-211-025 COUNTY OF SANTA BARBARA 2 123 E CARRILLO ST $ 6,343.39 0.29% 039-232-020 COUNTY OF SANTA BARBARA 1 1130 STATE ST $ 7,357.20 0.33% Total $ 67,551.99 3.07%
Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

This Report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed DSB CBID.

EXHIBIT A
1 to the Management District Plan and this Report. The proposed DSB CBID and resultant assessment levies will continue for 5-year and may be renewed again at that time for up to 20 years each renewal. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each DSB CBID assessed parcel within two benefit zones, except as noted herein.

Assessment Formula Methodology
Step 1. Select “Basic Benefit Unit(s)”
Background - Assessment Formula Development
The method used to determine special benefits conferred on each identified assessed property within an assessment district begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the DSB CBID, the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by an assessment district in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis.

Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the assessment formula, different factors may be assigned different “weights” or percentage of values based on their relationship to programs/services to be funded.

Next, all program and activity costs, including incidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or “special” benefits related costs may be used. Indirect or general benefits, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See page 17 of this Report for discussion regarding publicly owned parcels within the DSB CBID).

From the estimated net program costs, the value of a basic benefit unit or “basic net unit cost” can be computed by dividing the total amount of estimated net program costs by the total number of benefit units.

The amount of assessment for each parcel can be computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionally or “spread” amongst all benefitting properties within the assessment district.

EXHIBIT A
The method and basis of spreading program costs varies from one assessment district to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. Assessment districts may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or “stepped-down” special benefits derived.

DSB CBID Assessment Formula
Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DSB CBID (i.e. Civil Sidewalks, District Identity & Placemaking, Administration and Contingency) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

The “Basic Benefit Units” will be expressed as a combined function of gross exterior building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”), and in the case of residential condominium parcels, internal building square footage (Benefit Unit “D”).

Based on the shape of the proposed DSB CBID, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage within two benefit zones, except as noted herein.

In the opinion of this Assessment Engineer, the targeted weight of Zone 1 revenue to match the projected costs of Zone 1 services, should generate approximately 90% of the total DSB CBID revenue (88.8601% when adjusted for precise parcel measurements and program costs and service levels).

In the opinion of this Assessment Engineer, the targeted weight of Zone 2 revenue to match the projected costs of Zone 2 services, should generate approximately 10% of the total DSB CBID revenue (11.1399% when adjusted for precise parcel measurements and program costs and service levels).

The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of district funded services, programs and improvements. These factors directly relate to the degree of special benefit each assessed parcel will receive from DSB CBID funded activities within each benefit zone.

Building area (Benefit Unit A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on DSB CBID funded activities. The targeted combined assessment weight of building area (Units A & D) is 45%. The actual combined weight of Units A & D is 47.040353%. Unit A will generate 46.118986% of the overall assessment revenue. Unit D will generate 0.921367% of the overall assessment revenue
Land area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on DSB CBID funded activities. The targeted assessment weight of land area (Unit B) is 40%. Unit B will actually generate 40.103623% of the overall assessment revenue.

Street frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on DSB CBID funded activities. The targeted assessment weight for street frontage is 15%. Unit C will actually generate 12.856023% of the overall assessment revenue.

EXHIBIT A
Special Assessment Circumstances

1. Residential Condominiums
There are currently 66 residential condominium units within the DSB CBID. It is the opinion of this Assessment Engineer that these residential condominium parcels will proportionately specially benefit from DSB CBID funded programs and activities, but differently than commercial parcels and other residential rental parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit.

2. Multi-Unit Residential (rental)
In the opinion of this Assessment Engineer, parcels with multi-unit residential rental uses within the proposed DSB CBID), will proportionately specially benefit from DSB CBID funded programs, services and improvements the same as commercial parcels and uses. In the opinion of this Engineer, the level of benefit for the proposed DSB CBID funded programs, services and improvements for multiunit residential use parcels is the same as commercial use parcels and the assessments shall be based on the zone assessment rates for gross exterior building area, land area and street frontage.

3. Publicly Owned and Fully Occupied Parcels
In the opinion of this Assessment Engineer that publicly owned parcels within the proposed DSB CBID will proportionately specially benefit from DSB CBID funded programs, services and improvements but different than commercial parcels. The reason for this finding is rooted in the fact that commercial parcels and buildings provide the double benefit of directly generating income for the parcel in the form of market driven rents and, in turn, generate income to business owners as a function of retail sales areas, food and other service business space and office space to house revenue generating employees.

This double benefit does not hold true for publicly owned parcels and facilities. In the opinion of this Engineer, the assessment for publicly owned parcels and facilities shall be based on land area and street frontage with no assessment levied on building area. Assessments shall be set at the same respective zone rates as commercial parcels and uses.

4. Commercial and Mixed-Use Condominiums
Because such uses are typically developed as part of a multi-floor complex, special methodologies are needed to address the levy of assessments on such land uses as follows:

A. Multi-Floor Commercial Only Condominiums (no residential units) - Building area (interior) assessed at respective zone building area rate - Land area assessed at zone land area rate but pro-rated for each unit relative to the unit interior building area compared to the total (cumulative) interior building area of the complex - Street frontage assessed at land street frontage rate but pro-rated for each unit relative to the unit interior building area compared to the total (cumulative) interior building area of the complex

EXHIBIT A
B. Multi-Floor Mixed-Use Condominiums
- Commercial condo interior building area assessed at respective zone building area rate - Residential condo interior building area assessed at residential condominium building area rate
- Commercial land area assessed at zone land area rate, pro-rated for each unit relative to the unit interior building area compared to the total (cumulative) interior commercial building area of the complex
- Commercial street frontage assessed at commercial street frontage rate, pro-rated for the unit interior building area compared to the total (cumulative) interior commercial building area of the complex
Changes to Building and/or Parcel Size
Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments.

Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Report and the Plan would require a new Article XIIID ballot procedure in order to approve any such changes.

Step 2. Quantify Total Basic Benefit Units
Considering all identified specially benefiting parcels within the DSB CBID and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table:

Year 1 – 2025 - Assessable Benefit Units

BENEFIT
ZONE
BLDG
AREA
(SF)
LAND
AREA
(SF)
STREET

FRONTAGE
(LF)
RESID
CONDO

BLDG AREA
(SF)
# of

PARCELS
1 4,320,260 4,183,510 39,784 68,982 459
2 408,940 1,002,709 9,885 23,270 83
TOTAL 4,729,200 5,186,219 49,669 92,252 542
Considering all identified specially benefiting parcels within the DSB CBID and their respective assessable benefit units, the cumulative assessment revenue by factor and zone are shown in the following Table:

EXHIBIT A
Year 1 – 2025 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE

RESID CONDO

BLDG AREA

REVENUE
TOTAL

REVENUE
1 $950,457.20 $753,031.80 $238,704.00 $15,176.04 $1,957,369.04 2 $65,430.40 $130,352.17 $44,482.50 $5,119.40 $245,384.47 TOTAL $1,015,887.60 $883,383.97 $283,186.50 $20,295.44 $2,202,753.51 1 43.148595% 34.185931% 10.836619% 0.688958% 88.8601%
2 2.970391% 5.917692% 2.019404% 0.232409% 11.1399%
TOTAL 46.118986% 40.103623% 12.856023% 0.921367% 100.0000% Step 3. Calculate Benefit Units for Each Property.

The number of Benefit Units for each identified benefiting parcel within the proposed DSB CBID was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the DSB CBID for their review. If a property owner believes there is an error on a parcel’s assessed footages, the DSB CBID may confirm the data with the Santa Barbara County Assessor’s office. If DSB CBID data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the DSB CBID assessment may be corrected.

Step 4. Determine Assessment Formula
In the opinion of this Assessment Engineer, the assessment formula for the proposed DSB CBID, except as noted herein, is as follows:

Assessment = Building Area (Unit A) Sq Ft x Unit A Rate, plus Land Area (Unit B) Sq Ft x Unit B Rate, plus
Street Frontage (Unit C) Lin Ft x Unit C Rate
or
= Residential Condo Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates
Based on figures from the Assessable Benefit Units Table on page 22, the assessment rates for each factor and zone are shown as calculated below:

EXHIBIT A
Zone 1
Building Area Rate (Unit A-1)
($2,202,753.51 x 43.148595%) / 4,320,260 assessable building area units = $0.22/sq ft bldg area Land Area Rate (Unit B-1)
($2,202,753.51 x 34.185931%) / 4,183,510 assessable land area units = $0.18/sq ft land area Street Frontage Rate (Unit C-1)
($2,202,753.51 x 10.836619%) / 39,784 assessable street frontage units = $6.00/LF street frontage Zone 2
Building Area Rate (Unit A-2)
($2,202,753.51 x 2.970391%) / 408,940 assessable building area units = $0.16/sq ft bldg area Land Area Rate (Unit B-2)
($2,202,753.51 x 5.917692%) / 1,002,709 assessable land are units = $0.13/sq ft land area Street Frontage Rate (Unit C-2)
($2,202,753.51 x 2.019404%) / 9,885 assessable street frontage units = $4.50/LF street frontage Zone 1 & 2
Residential Condominium Building Area Rate (Unit D-1/D-2) ($2,202,753.51 x 0.921367%) / 92,252 assessable building area units = $0.22/sq ft bldg area

YEAR 1 –2025 Assessment Rates

BENEFIT ZONE
BLDG
AREA
ASSMT
RATE
($/SF)
LAND
AREA
ASSMT
RATE
($/SF)
STREET

FRONTAGE
ASSMT
RATE
($/LF)
RESID
CONDO

BLDG AREA
ASSMT
RATE ($/SF)
YEAR 1
1 $0.2200 $0.1800 $6.0000 $0.2200
2 $0.1600 $0.1300 $4.5000 $0.2200
The complete Year 1 – 2025 assessment roll of all parcels to be assessed by the DSB CBID is included in this Report as Appendix I.

EXHIBIT A
Step 5. Estimate Total DSB CBID Costs
The total projected 5-year DSB CBID special benefit costs for 2025 – 2029 are shown in the Table on page 15 of this Report assuming a maximum 5% increase per year.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $2,247,707.

Districtwide general benefits are factored at 2% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit value is computed to be $44,954 with a resultant 98% special benefit limit computed at $2,202,753. Based on current property data and land uses, this is the maximum amount of Year 1 (2025) revenue that can be derived from property assessments from the subject District. All program costs associated with district wide and site/activity specific general benefits will be derived from sources other than DSB CBID assessments such as grants, underwriting, event proceeds and volunteer credits.

Step 7. Calculate “Basic Unit Cost”
With a YR 1 - 2025 assessment revenue portion of the budget set at $2,202,753 (special benefit only), the Basic Unit Costs (rates) are shown earlier in Step 4. Since the DSB CBID is proposed to be formed for a 5-year term, maximum assessments for future years (2026-2029) must be set at the inception of the proposed DSB CBID. An annual inflationary assessment rate increase of up to 5%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the DSB CBID Property Owner’s Association. The maximum assessment rates for the 5-year proposed DSB CBID term of 2025-2029 are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the proposed DSB CBID term (2025- 2029).

DSB CBID – 5-year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

YEAR &

BENEFIT
ZONE
BLDG
AREA
ASSMT
RATE
($/SF)
LAND
AREA
ASSMT
RATE
($/SF)
STREET

FRONTAGE
ASSMT
RATE
($/LF)
RESID
CONDO

BLDG AREA
ASSMT
RATE ($/SF)
YEAR 1
1 $0.2200 $0.1800 $6.0000 $0.2200
2 $0.1600 $0.1300 $4.5000 $0.2200
YEAR 2
1 $0.2310 $0.1890 $6.3000 $0.2310
2 $0.1680 $0.1365 $4.7250 $0.2310
YEAR 3
1 $0.2426 $0.1985 $6.6150 $0.2426

EXHIBIT A
2 $0.1764 $0.1433 $4.9613 $0.2426
YEAR 4
1 $0.2547 $0.2084 $6.9458 $0.2547
2 $0.1852 $0.1505 $5.2094 $0.2547
YEAR 5
1 $0.2674 $0.2188 $7.2931 $0.2674
2 $0.1945 $0.1580 $5.4699 $0.2674
Step 8. Spread the Assessments
The resultant assessment spread calculation for each parcel within the DSB CBID are shown in the Management District and this Report and were determined by applying the DSB CBID assessment formula to each identified benefiting property. The complete Year 1 – 2025 assessment roll of all parcels to be assessed by the DSB CBID is included in this Report as Appendix I.

Miscellaneous DSB CBID Provisions
Time and Manner of Collecting Assessments:

Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of Santa Barbara (Operation Years 2025-2029). The DSB CBID assessments shall appear as a separate line item on the property tax bills issued by the Santa Barbara County Assessor. The City of Santa Barbara is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Management District Plan.

Bonds:

No bonds are to be issued in conjunction with this proposed DSB CBID.

Duration
As allowed by the Ordinance, the DSB CBID will have a five (5) year operational term from January 1, 2025 to December 31, 2029. The proposed DSB CBID operation is expected to begin services on January 1, 2025. If the DSB CBID is not renewed again at the end of the proposed 5-year term, services will end on December 31, 2029.

EXHIBIT A
APPENDIX 1

DSB CBID
YEAR 1 – 2025

ASSESSMENT ROLL

EXHIBIT A
APN Year 1 Assessment
029-071-001 $ 2,750.31
029-071-013 $ 6,967.88
029-071-014 $ 1,334.96
029-121-001 $ 7,594.17
029-121-020 $ 1,889.66
029-121-022 $ 17,012.19
029-161-001 $ 34,949.55
029-211-001 $ 3,585.48
029-211-010 $ 2,197.97
029-211-011 $ 578.16
029-211-012 $ 528.56
029-211-014 $ 1,609.56
029-211-015 $ 765.69
029-211-020 $ 646.02
029-211-024 $ 4,899.52
029-211-025 $ 6,343.39
029-211-026 $ 5,500.60
029-291-002 $ 4,964.45
029-291-018 $ 7,351.99
029-291-020 $ 4,872.79
029-291-022 $ 2,976.39
029-291-024 $ 1,479.23
029-410-001 $ 1,377.04
029-410-002 $ 722.69
029-410-003 $ 463.17
029-410-004 $ 520.45
029-410-005 $ 783.53
029-410-006 $ 1,063.80
029-410-007 $ 409.70
029-410-008 $ 681.68
029-410-009 $ 856.94
029-410-010 $ 331.65
029-410-012 $ 626.34
029-410-013 $ 978.47
029-490-001 $ 3,935.86
029-490-002 $ 252.59
029-490-003 $ 1,181.60
029-490-004 $ 176.00
029-490-005 $ 297.00
031-011-001 $ 15,493.75
031-011-014 $ 7,378.26
031-081-001 $ 1,684.76
031-081-002 $ 1,381.97
031-081-012 $ 3,393.24
031-081-013 $ 1,950.57
031-081-014 $ 5,181.64
031-081-015 $ 3,129.85
031-081-016 $ 1,083.37
031-081-017 $ 812.94
031-151-017 $ 12,438.29
031-151-020 $ 8,983.00
031-201-021 $ 1,101.18
031-201-022 $ 1,408.11
031-201-023 $ 1,083.00
031-201-026 $ 2,201.69
031-201-029 $ 3,891.19
031-201-031 $ 3,900.19
031-271-001 $ 1,656.69
031-271-016 $ 1,559.57
031-271-017 $ 1,102.78
031-271-018 $ 1,909.38
031-271-020 $ 2,028.24
031-271-021 $ 773.88
031-271-022 $ 916.06
031-271-023 $ 792.55
031-271-032 $ 2,808.54
031-271-035 $ 2,173.87
031-331-001 $ 2,106.32
031-331-019 $ 3,077.50
031-331-022 $ 2,273.62
031-331-023 $ 1,895.30
031-331-024 $ 2,378.71
031-540-001 $ 639.98
031-540-002 $ 582.56
031-540-003 $ 629.20
031-540-004 $ 639.98
031-540-005 $ 660.00
031-540-006 $ 443.74
031-540-007 $ 399.30
031-540-008 $ 827.64
031-540-009 $ 458.18
031-540-010 $ 499.66
031-540-011 $ 197.19
037-052-003 $ 1,327.84
037-052-006 $ 4,366.86
037-052-010 $ 3,242.76
037-052-020 $ 7,696.56
037-052-021 $ 10,394.86
037-052-022 $ 1,343.88
037-052-024 $ 16,928.86
037-052-026 $ 2,155.74
037-052-027 $ 6,687.30
037-052-032 $ 2,776.92
037-052-033 $ 22,019.08
037-092-001 $ 8,031.72
037-092-009 $ 764.42
037-092-010 $ 3,289.94
037-092-013 $ 6,393.82
037-092-014 $ 592.70
037-092-015 $ 1,227.54
037-092-016 $ 4,333.40
037-092-017 $ 1,268.46
037-092-018 $ 1,064.34

EXHIBIT A
037
-092-019 $ 818.38
037-092-020 $ 951.64
037-092-021 $ 1,466.54
037-092-024 $ 969.36
037-092-025 $ 935.82
037-092-026 $ 1,180.76
037-092-027 $ 1,137.48
037-092-028 $ 1,033.50
037-092-029 $ 1,553.52
037-092-034 $ 545.88
037-092-036 $ 21,363.42
037-092-037 $ 21,864.18
037-131-001 $ 6,076.02
037-131-002 $ 2,938.28
037-131-005 $ 858.84
037-131-006 $ 918.74
037-131-009 $ 1,075.62
037-131-010 $ 2,878.10
037-131-012 $ 669.24
037-131-013 $ 1,832.10
037-131-014 $ 582.06
037-131-015 $ 580.28
037-131-016 $ 537.06
037-131-017 $ 521.76
037-131-018 $ 509.44
037-131-019 $ 4,034.28
037-131-020 $ 13,740.74
037-131-021 $ 15,222.26
037-131-022 $ 6,836.32
037-131-023 $ 11,883.66
037-132-001 $ 2,770.62
037-132-017 $ 887.12
037-132-019 $ 8,749.82
037-132-025 $ 2,282.98
037-132-026 $ 1,664.58
037-132-027 $ 1,602.96
037-132-028 $ 2,208.14
037-132-030 $ 4,545.78
037-132-031 $ 6,765.60
037-132-033 $ 24,403.00
037-132-035 $ 1,127.82
037-132-036 $ 11,617.20
037-132-037 $ 2,525.82
037-132-038 $ 2,708.76
037-171-001 $ 3,666.34
037-171-004 $ 6,528.50
037-171-005 $ 2,085.16
037-171-006 $ 1,622.12
037-171-007 $ 2,974.90
037-171-008 $ 8,145.58
037-171-009 $ 1,945.06
037-171-010 $ 1,300.86
037-171-011 $ 5,200.00
037-172-002 $ 1,667.36
037-172-003 $ 1,827.00
037-172-004 $ 2,182.52
037-172-005 $ 1,750.00
037-172-006 $ 3,309.64
037-172-009 $ 1,826.56
037-172-01 $ 14,567.60
037-172-010 $ 1,686.86
037-172-011 $ 10,879.72
037-172-012 $ 3,286.16
037-173-001 $ 2,506.98
037-173-003 $ 4,642.00
037-173-004 $ 909.16
037-173-009 $ 3,897.70
037-173-015 $ 3,261.08
037-173-016 $ 1,694.48
037-173-020 $ 7,079.92
037-173-021 $ 1,139.88
037-173-025 $ 820.18
037-173-026 $ 6,707.60
037-173-027 $ 734.10
037-173-028 $ 1,096.66
037-173-037 $ 4,075.76
037-173-041 $ 9,724.80
037-173-045 $ 3,645.82
037-173-046 $ 886.78
037-173-047 $ 240.00
037-173-049 $ 342.00
037-173-051 $ 3,320.84
037-173-052 $ 1,919.92
037-173-053 $ 279.54
037-173-055 $ 16,052.22
037-211-002 $ 5,597.76
037-211-003 $ 7,297.84
037-211-004 $ 328.08
037-211-005 $ 1,568.16
037-211-006 $ 2,233.36
037-211-007 $ 1,128.00
037-211-008 $ 1,073.12
037-211-009 $ 1,087.44
037-211-010 $ 1,093.40
037-211-011 $ 1,637.40
037-211-012 $ 1,602.84
037-211-015 $ 2,088.78
037-211-016 $ 1,804.32
037-211-017 $ 1,080.68
037-211-018 $ 2,931.76
037-211-019 $ 7,371.76
037-211-021 $ 2,544.12
037-211-022 $ 2,410.88
037-211-026 $ 4,216.22

EXHIBIT A
037
-211-027 $ 8,508.64
037-211-028 $ 3,157.84
037-211-029 $ 3,134.82
037-211-031 $ 10,238.52
037-211-032 $ 1,716.72
037-211-033 $ 1,978.64
037-211-034 $ 432.40
037-211-035 $ 1,778.80
037-211-036 $ 1,778.80
037-212-001 $ 2,567.88
037-212-002 $ 414.30
037-212-003 $ 3,114.24
037-212-004 $ 4,799.88
037-212-008 $ 2,072.04
037-212-010 $ 1,847.82
037-212-011 $ 2,625.56
037-212-012 $ 2,232.18
037-212-013 $ 1,307.84
037-212-021 $ 4,954.56
037-212-022 $ 7,701.12
037-212-023 $ 3,193.08
037-212-024 $ 2,862.58
037-212-025 $ 7,331.50
037-212-026 $ 733.66
037-212-027 $ 1,596.30
037-212-028 $ 660.16
037-212-030 $ 4,545.30
037-212-032 $ 1,052.34
037-212-033 $ 764.40
037-212-034 $ 4,270.90
037-212-035 $ 6,076.38
037-251-003 $ 13,153.80
037-252-007 $ 4,321.68
037-252-008 $ 5,870.18
037-252-011 $ 11,534.58
037-254-003 $ 811.44
037-254-004 $ 1,750.16
037-254-005 $ 3,074.58
037-254-006 $ 1,856.10
037-254-007 $ 1,844.40
037-254-014 $ 7,055.08
037-254-016 $ 3,671.40
037-254-019 $ 8,705.06
037-254-020 $ 20,443.16
037-320-001 $ 451.74
037-320-002 $ 272.66
037-320-003 $ 331.94
037-320-004 $ 687.66
037-320-005 $ 477.76
037-320-006 $ 530.68
037-320-007 $ 319.60
037-320-008 $ 370.40
037-320-009 $ 308.16
037-400-001 $ 45,498.48
037-400-002 $ 133,646.48
037-400-003 $ 21,030.54
037-400-004 $ 5,249.82
037-400-006 $ 366.30
037-400-007 $ 19,483.42
037-400-008 $ 4,831.50
037-400-009 $ 2,593.12
037-400-010 $ 1,918.68
037-400-011 $ 6,004.90
037-400-012 $ 18,382.80
037-400-013 $ 3,249.30
037-400-014 $ 23,361.20
037-400-015 $ 16,232.36
037-400-016 $ 2,598.36
037-400-018 $ 5,834.06
037-400-019 $ 269.70
037-450-001 $ 259.38
037-450-002 $ 246.62
037-450-003 $ 246.62
037-450-004 $ 250.36
037-450-005 $ 263.34
037-450-006 $ 249.04
037-450-007 $ 249.04
037-450-008 $ 249.04
037-450-009 $ 249.04
037-450-010 $ 251.46
037-450-011 $ 251.46
037-450-012 $ 188.10
037-450-013 $ 195.58
037-450-014 $ 198.00
037-450-015 $ 365.64
037-450-016 $ 365.64
037-450-017 $ 360.80
037-450-019 $ 1,264.40
037-450-022 $ 996.38
037-450-023 $ 1,477.88
037-450-024 $ 1,518.58
037-480-001 $ 7,778.96
037-480-002 $ 912.18
037-480-003 $ 4,049.16
039-131-002 $ 4,104.00
039-131-005 $ 1,012.12
039-131-006 $ 1,700.00
039-131-008 $ 2,272.74
039-131-009 $ 1,153.78
039-131-010 $ 1,464.00
039-131-011 $ 1,408.00
039-131-012 $ 836.40
039-131-013 $ 851.36
039-131-014 $ 836.40

EXHIBIT A
039
-282-001 $ 11,337.26
039-282-006 $ 9,853.00
039-282-009 $ 7,366.64
039-282-012 $ 5,329.08
039-282-014 $ 9,426.24
039-282-015 $ 1,003.64
039-282-019 $ 1,028.18
039-282-020 $ 1,147.98
039-282-022 $ 713.46
039-282-024 $ 5,255.20
039-282-026 $ 3,428.34
039-282-027 $ 2,582.50
039-282-029 $ 6,837.08
039-282-031 $ 4,258.50
039-282-032 $ 1,717.68
039-282-033 $ 2,178.72
039-282-034 $ 4,023.36
039-282-035 $ 11,491.24
039-282-036 $ 6,476.08
039-321-002 $ 5,971.70
039-321-003 $ 1,455.18
039-321-004 $ 1,837.24
039-321-005 $ 2,579.86
039-321-006 $ 9,832.60
039-321-007 $ 2,577.62
039-321-01 $ 21,560.76
039-321-015 $ 6,292.80
039-321-019 $ 6,637.68
039-321-028 $ 8,326.30
039-321-029 $ 224.28
039-321-033 $ 20,989.90
039-321-035 $ 1,787.76
039-321-037 $ 2,320.96
039-321-039 $ 3,445.94
039-321-041 $ 2,463.52
039-321-045 $ 612.42
039-321-046 $ 1,276.16
039-321-047 $ 10,525.92
039-321-048 $ 1,121.58
039-321-049 $ 683.60
039-321-050 $ 2,127.38
039-321-051 $ 853.56
039-321-054 $ 468.00
039-321-055 $ 408.60
039-321-056 $ 127.98
039-322-009 $ 10,418.50
039-322-023 $ 1,221.96
039-322-024 $ 1,320.60
039-322-029 $ 6,909.18
039-322-032 $ 6,022.92
039-322-034 $ 3,706.28
039-322-038 $ 2,665.26
039-322-044 $ 10,330.80
039-322-045 $ 5,256.52
039-322-047 $ 4,531.72
039-322-050 $ 14,339.54
039-322-051 $ 725.78
039-322-052 $ 14,238.48
039-530-001 $ 728.50
039-530-002 $ 755.12
039-530-003 $ 758.86
039-530-004 $ 343.86
039-590-002 $ 872.52
039-590-003 $ 522.00
039-590-004 $ 272.40
039-590-005 $ 636.90
039-590-006 $ 664.62
039-590-007 $ 17.38
039-590-008 $ 666.38
039-590-009 $ 668.80
039-590-010 $ 670.34
039-590-011 $ 75.68
039-590-012 $ 705.54
039-590-013 $ 947.10
039-590-014 $ 81.18
039-590-015 $ 47.96
039-590-016 $ 46.20
039-590-017 $ 47.08
039-610-001 $ 161.70
039-610-002 $ 161.26
039-610-003 $ 280.72
039-610-004 $ 242.00
039-610-005 $ 264.66
039-610-006 $ 219.56
039-610-007 $ 234.52
039-610-008 $ 229.46
039-610-009 $ 216.48
039-610-010 $ 205.04
039-610-011 $ 182.16
039-610-012 $ 224.84
039-610-013 $ 177.32
039-610-014 $ 9,612.22
039-610-015 $ 2,020.00
039-610-016 $ 2,156.00
039-610-017 $ 157.74
039-610-018 $ 150.04
039-610-019 $ 158.18
039-610-020 $ 280.72
039-610-021 $ 287.54
039-610-022 $ 264.44
039-610-023 $ 240.68
039-610-024 $ 234.52
039-610-025 $ 231.44
039-610-026 $ 224.40

EXHIBIT A
039
-610-027 $ 236.94
039-610-028 $ 407.44
039-610-029 $ 302.06
039-610-030 $ 311.08
039-610-031 $ 170.94
039-610-032 $ 150.04
039-610-033 $ 163.02
039-610-034 $ 237.82
039-610-035 $ 284.46
039-610-036 $ 256.08
039-610-037 $ 216.04
039-610-038 $ 425.70
039-610-039 $ 269.72
039-610-040 $ 279.62
039-630-001 $ 6,308.36
039-630-002 $ 5,857.22
039-650-001 $ 542.34
039-650-002 $ 392.04
039-650-003 $ 235.08
039-650-004 $ 5,350.08
039-650-006 $ 745.56
039-650-007 $ 3,406.64
039-650-008 $ 1,514.02

EXHIBIT A
APPENDIX 2

DSB CBID BOUNDARY MAP

EXHIBIT A

EXHIBIT A
1 THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
Final Plan – March 22nd, 2022
.

Prepared for the:

The Coast Village Association
City of Santa Barbara
Prepared by:

New City America, Inc.

Corporate Office ▪ 2011 W. California Street ▪ San Diego, CA 92110 ▪ 888 256-2726 ▪ Fax 619-239-7105 Midwest Office: 300 State Street ▪ Ste 4710 ▪ Chicago, Ill ▪ 60654 New England Office: 42 Pearl Street ▪ New Bedford, MA ▪ 02740 [email protected] ▪ www.newcityamerica.com ▪ Facebook: New City America, Inc.

ATTACHMENT 2
2 Section Number

1. Management District Plan Summary 3

2. Coast Village CBID Boundaries 9

3. District Improvement and Activity Plan 11

4. Assessment Methodology 17

5. District Rules, Regulations and Governance 26

6. Implementation Timetable 26

7. Assessment Roll of Properties Included 27
Attachment:
a. Engineer’s Report
The Coast Village Community Benefit Improvement District 2022 Management District Plan
3 The name of this Community Benefit Improvement District (“CBID”) is the Coast Village Community Benefit Improvement District (“Coast Village CBID” or the “District”). The District is being formed under the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code Chapter 4.45).

The levy of assessments on real property within the proposed District will fund physical and maintenance and operational improvements to individual properties, with the intent to attract new customers, tenants, and increase business sales. throughout the Coast Village District.

Coast Village CBID Steering Committee
For decades, the Coast Village Association has led the effort to improve and enhance the experience and overall ambiance of working, visiting, shopping in and residing in the Coast Village district. Its efforts have paid off well but are hindered by a lack of sustainable revenue to fund the improvements as well as not having staff to oversee the short- and long-term needs of the district.

In the summer of 2020, the Coast Village Association hired New City America, a Southern California company that specializes in CBID and PBID investigations and formations, to investigate the likelihood of conceptual support for a new Coast Village District Community Benefit Improvement District. We conducted a survey to gauge support within the community for a new Special Benefit District for the Coast Village District property owners.

Priority Special Benefit Services/Survey
This past September, a survey was sent out to all the property owners in the proposed CBID area to ascertain their level of conceptual support for the services that would be funded through the establishment of a new Coast Village Improvement District (CVCBID). The survey results informed us of the priority services desired by the property owners and those special benefits have been incorporated into this plan and will be articulated in the plan as well as the Engineer’s report.

We received responses from over 50% of the property owners in the proposed district, (based upon property data in the district). In their response to the survey, the property owners prioritized the following special benefit services, among issues that property owners have had concerns about the public rights of way.
• First, the response prioritized funding marketing and promotions, social media and branding programs to attract new tenants to the district.
• Second, property owners supported funding special events such as Holiday décor, street festivals etc. to improve the identity and bring positive attention to the Coast Village district. • Third, property owners supported planting, trimming and maintenance of trees, flowers and shrubs throughout Coast Village.
• Fourth, the priority stated was to create a more orderly environment in the public rights of way, over and above what the City of Santa Barbara City staff is currently providing Section 1
Management District Plan Summary
4 Changes in Santa Barbara’s Coast Village District
The investigation of a new Coast Village District CBID centered on these 5 questions:

1. How to fund the programs that will make the Coast Village District brand become more positive in Southern California.

2. How to create greater demand for Coast Village District’s buildings resulting in greater rental rates and commerce to businesses and tenants, particularly in light of the devasting impact of the COVID 19 pandemic.

3. How to drive more tenants to the buildings in the Coast Village District and attract more customers and visitors to rebuild the retail and restaurant sectors here.

4. How to ensure that the public rights of way will become more beautiful, and attractive and promote the culture and history of the Coast Village District.

5. How to fund and sustain the improvements needed to provide adequate lighting and landscaping as well as mitigation of the 101-realignment project and its impact on Coast Village Road and its businesses.

How can a new CBID benefit property owners in Coast Village District? In summary, a Coast Village CBID is a Special Benefits Assessment District allowable in the state constitution that allows for the levy of assessments on benefitting property owners with the purpose of funding special benefit services that convey these benefits to the property owners within the proposed district boundaries. The special benefit services to be funded through this plan include responded to:
• Sidewalk cleanliness
• Increase the trimming and replacement of damaging trees and landscaping • Install/improve decorative amenities such as street furniture/fixtures/equipment/lighting • Promote and enhance the brand/image of Coast Village
• Manage events at in and around the district
• Create a strong social media presence, and facilitate public relations for Coast Village businesses
• Provide parking directional services and other mobility related activities • Promote public space development and placemaking

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage, on all sides of the parcel (excluding alleys) • Lot size or the footprint of the parcel
• Building square footage
5 • Current and future residential condominiums that will be constructed within the District • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated benefit with the current land uses:

1. Residential condominiums will be assessed for their specific parcel building square footage only.

2. All private, public and tax-exempt owned and operated parcels will be assessed for linear frontage, building square footage and lot size

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed-use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot squares footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District.

The data that was obtained from Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Broken down by benefit zone:

Zones Building
Square Feet
Lot
Square Feet
Linear
Frontage
Residential
Condos/Apt
1 394,680 sq. ft 1,063,657 sq. ft. 8,085 linear feet 157,322 sq. ft. 2 70,155 sq. ft. 238,747 sq. ft. 1,842 linear feet 4,868 sq. ft.

Total 464,835 sq. ft 1,302,404 sq. ft 9,927 linear feet 162,190 sq. ft.

Boundaries:

The following description summarizes the two different Benefit Zones within the proposed Coast Village Community Benefit Improvement District. Both of the Benefit Zones are predominantly geographically based, In general, the Benefit Zone boundaries are proposed as follows:

Zone 1. Core Area: on the east side, commencing at Olive Mill Road and heading westward including parcels on both sides of the Coast Village Road between the 101 Freeway on the south and Hot Springs Road on the west. Parcels facing the 101 freeway with no frontage along Coast Village Road will instead be included in Benefit Zone 2 assessment rates since they will not receive the same benefit as parcels fronting directly onto Coast Village Road. 6 Zone 2: Peripheral area: on the far west side of the district on the south side of the 101-freeway beginning at Cabrillo Road on the east and ending at parcel # 391-001-000 on the west, which include those parcels north of Highway 101 which do not front along Coast Village Road.

Costs:

The costs per parcel are based upon the five factors listed on Page 7 above. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district along Coast Village Road, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received.

Proposed First Year Coast Village District CBID Budget - 2022 Category of Services Percentage of
budget
1st Year
Allocation
Civil Sidewalks 40% $ 120,000
District Identity and Placemaking 28% $ 83,000
Administration 18% $ 54,000
Capital Improvements – Traffic
Management
10% $ 30,000
Contingency/Reserve 4% $ 9,749
Total 1st year Budget 100% $ 296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square
Footage $0.18 per square foot
$0.14 per square
foot
Commercial Lot Size $0.10 per square foot
$0.06 per square
foot
Commercial Linear Frontage $8.00 per linear foot
$6.00 per linear
foot
Residential Condos Building
Square Footage $0.12 per square foot
$0.12 per square
foot
Residential apartments
(Residential apartments and
mixed-use developments will
pay for Benefit Zone 1 lot size
and linear frontage costs in
addition to the reduced building
square footage costs.)
$0.12 per square
foot.
$0.10 per square foot
of lot size;
$8.00 per linear foot
$0.12 per square
foot; $0.10 per
square foot of
lot size;
$8.00 per linear
foot
7 Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid over the first three years of the formation of the district.

Annual Rate Increase
The District budget and assessments is subject to annual increases not to exceed 5% per year. Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in Land Use
Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

District Formation
Under the local enabling ordinance, District formation requires a submission of petitions from property owners in the proposed district representing more than 30% of the total assessments to be paid into the CBID. Once the City verifies the petitions totaling a minimum of 30%, ($89,025) of the first-year annual budget which is projected to be $296,749.00 in assessments in the District, the Santa Barbara City Council may adopt a Resolution of Intention to mail out ballots to all affected property owners. The City will then hold a public hearing and tabulate the ballots. The Coast Village CBID will be formed if the weighted majority of all returned mail ballots support District formation and if the City Council adopts a Resolution of Formation to levy the assessments on the benefiting parcels. The date for that public hearing has not been scheduled but is assumed that it will be held in late March 2022, based upon the successful completion of the petition drive.

Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period.

Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. 8 Public and Tax-Exempt Parcels
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.

Governance
Pursuant to Section 36650 of the California Streets and Highway Code, an Owners’ Association will report on District budgets and policies annually to the Santa Barbara City Council. The Management Corporation, which will be under contract with the City of Santa Barbara, must file Annual Reports with the City as the Owners Association will oversee the day-to-day implementation of services as defined in the Management District Plan.
“Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway. Code § 36612.)
An existing or new public benefit non-profit corporation (501c3) will be established once the district has been approved by the property owners and it will serve in the capacity of the Owners Association. The current Coast Village Road Association seeks to become a new public benefit, non-profit corporation and will therefore create a successor organization, serving as the Owners Association, to administer the district under contract with the City.

Disestablishment
Under the local enabling ordinance, the Coast Village CBID property owners will have an annual period in which to submit petitions to the City Council to disestablish the CBID. If the property owners vote by weighted majority to disestablish the District, assessments will be removed from the parcels the following fiscal year. Unexpended surplus funds will be returned to property owners based upon a parcel’s percentage contribution to the previous fiscal year’s assessments. This disestablishment procedure is articulated in both the Santa Barbara City Municipal Code, Section 4.45.100 as well as the California Streets and Highway Code, Section 36670.
9 Boundaries
The proposed Coast Village CBID consists of approximately 5 to 6 square blocks consisting of 115 parcels owned by 94 property owners. See the Coast Village proposed CBID map in Section 2, page 17.

Benefit Zones
The District consists of two benefit zones.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues running westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side of the street up to parcel 211-038-000.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

Summation
A list of all parcels included in the proposed Coast Village CBID are shown as Appendix 1, attached to this report identified by their respective Santa Barbara County assessor parcel numbers. The boundary of the proposed Coast Village CBID is shown on the map to be found on pages 17 of this report. All identified assessed parcels within the above- described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Management District Plan. All Coast Village CBID funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District.

Section 2
Boundaries
10 11
Explanation of Special Benefit Services
All of the improvements and activities detailed below are provided only to properties within the boundaries of the Coast Village CBID, as the improvements and activities will provide special benefits to the owners of these properties.

The City will continue to provide general benefit services from the general fund in the Coast Village District which will include public safety programs, street sweeping, tree trimming, roadwork repairs, sidewalk repair, trash collection of public refuse containers, etc. The frequency of these general benefits may change from year to year and time to time based upon budget constraints. However, City general benefits will not be withdrawn from Coast Village District unless they are withdrawn by an equal frequency City wide. The CBID funded special benefits will not replace City funded general benefits, but rather will provide special benefits to parcel owners over and above the general benefits provided by the City of Santa Barbara.

All services funded by the assessments outlined in the Management District Plan are intended to specifically benefit the properties within the District to support increased commerce, business attraction and retention, to retain and increase commercial property rentals, attract new residential developments, enhance safety and cleanliness in the District, improve District identity, and eventually fund specialized beautification and enhanced services for the property owners, businesses, visitors and residents within the District.

Special Benefit Budget Category Analysis
This Plan gives property owners greater flexibility in determining the type and frequency of special benefit services that will be allocated on a year-to-year basis. As Santa Barbara’s Coast Village District evolves, services that are needed one year may not be needed the next. Therefore, “bundles” or categories of special benefit funding have been created and divided into five broad categories – Civil Sidewalks, District Identity and Placemaking, Capital Improvements/Traffic Management, Administration and Contingency. The bundles are allocated funding percentages with the flexibility to prioritize or minimize a service within each bundle.

The bundles or categories of services and their percentages represent the service plan the Coast Village District property owners will be voting on when the Coast Village District CBID comes up for a mail ballot later in the Winter of 2022.

The proposed “bundles” of special benefit services are listed below and are supplemental to current City services.

CIVIL SIDEWALKS:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the district
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the district • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) • Organization and oversight of trash collection
Section 3
District Improvement and Activity Plan
12 • Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams. • Farmers market assistance
DISTRICT IDENTITY AND PLACEMAKING:
• Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

ADMINISTRATION/PROGRAM MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CAPITAL IMPROVEMENTS/TRAFFIC MANAGEMENT
• Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins • In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road
• Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves, capital project improvements

METHOD OF FINANCING
The financing of the Coast Village CBID is based upon the levy of special assessments upon real properties 13 that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. See Section 4 for assessment methodology and compliance with Article XIII (d) of the California State Constitution. There will be five factors used in the determination of proportional costs to the parcels in the District. These five factors are:
• Linear frontage on all sides (excluding alleys)
• Lot square footage or the footprint of the parcel
• Building square footage.
• Residential condominiums that currently exist or will be constructed within the District. • Location within one of the two geographic benefit zones of the district In addition, other factors will be used to determined assessments based upon the anticipated based upon the current land uses:

1. Residential condominiums will be assessed for their actual parcel building square footage only.

2. All public and tax-exempt owned and operated parcels will be assessed similarly to other parcels based upon their location in their Benefit Zone.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District. The data that was obtained by Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Data broken down by benefit zone:

Benefit
Zone
Building Square
Footage Lot Square Footage
Linear
Frontage
Residential
Condos/Apt
1 394,680
sq. ft
1,063,657
sq ft
8,085
linear
feet
157,322
sq ft.
2 70,155
sq. ft.
238,747
sq ft
1,842
linear
feet
4,868
Total 464,835
sq. ft
1,302,404
sq. ft
9,927
linear
feet
162,190
sq. ft
Costs
The costs per parcel are based upon the five factors listed on page 18. The Benefit Zones are determined 14 by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional to the special benefits received so we have agreed upon the following Benefit Zones.

Proposed First Year Coast Village District CBID Budget
Category of Services
Percentage
of Budget 1st Year Allocation
Civil Sidewalks * 40% $120,000
District Identity and
Placemaking 28% $83,000
Administration 18% $54,000
Capital Improvements –
Traffic Management 10% $30,000
Contingency/Reserve 4% $9,749
Total 1st year Budget 100% $296,749
First Year Annual Costs Per Benefit Zone/Coast Village CBID Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel Property Variable Benefit Zone 1 Benefit Zone 2
Commercial Building Square Footage $0.18 per square foot $0.14 per square foot Commercial Lot Size $0.10 per square foot $0.06 per square foot Commercial Linear Frontage $8.00 per linear foot $6.00 per linear foot Residential Condos Building Square
Footage $0.12 per square foot $0.12 per square foot
Residential apartments (Residential
apartments and mixed-use
developments will pay for Benefit Zone
1 lot size and linear frontage costs in
addition to the reduced building square
footage costs.)
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
$0.12 per square foot.
$0.10 per square foot of lot
size.
$8.00 per linear foot
Reimbursement of Formation Funds
This plan authorizes the repayment of formation funds advanced by Coast Village District stakeholders to 15 cover the costs of the survey, calculation of results, the management district plan creation, approval by the CBID Steering Committee, the Assessment Engineers report, the petition drive and the balloting process to be conducted by the City of Santa Barbara. An amount not to exceed $90,000 shall be reimbursed to those property owners, as well as to cover a loan from the City of Santa Barbara, who invested in this process, and they shall be repaid in the first three years of the formation of the district.

Increases will be determined by the Owners’ Association and will vary between 0% and 5% annually.

Changes in land uses, the development of vacant parcels, the conversion of tax exempt to profitable land uses, the demolition of buildings, building improvements that increase square footages, and new building construction or residential condominium development, may alter the District’s budget and individual property assessments. Linear frontage and parcel size are normally not altered in the redevelopment of a site. Changes to assessments are more likely to occur upon changes to building square footages. Changes may also occur upon the conversion of single parcels to multiple parcels due to the construction of residential and/or commercial condominiums.

Bonds
The District will not issue any bonds related to any program.

Assessments may be subject to annual increase, based upon the action of the new Owners Association corporation Board, not to exceed 5% per year.

Changes in land use, demolition of existing buildings, and new development will occur and will change the improvements to that parcel, normally due to redevelopment of the site and the addition of new building square footage which shall be assessed based upon the provisions laid out in this Management Plan.

The budget for specific programs may be reallocated within each budget category by up to 10% during the term of the District. The Management Corporation Board may alter the budget based upon service needs and such changes shall be included in the Annual report and submitted to the Santa Barbara City Council for review and approval.

Five-Year Projection of Maximum Assessment for the Coast Village CBID 16 Civil Sidewalks DISI Admin
Capital
Improvements/
Traffic
Management
Contingency TOTAL
Y1 $ 120,000.00 $ 83,000.00 $ 54,000.00 $ 30,000.00 $ 9,749.00 $ 296,749.00 Y2 $ 126,000.00 $ 87,150.00 $ 56,700.00 $ 31,500.00 $ 10,236.45 $ 311,586.45 Y3 $ 132,300.00 $ 91,507.50 $ 59,535.00 $ 33,075.00 $ 10,748.27 $ 327,165.77 Y4 $ 138,915.00 $ 96,082.88 $ 62,511.75 $ 34,728.75 $ 11,285.69 $ 343,524.06 Y5 $ 145,860.75 $ 100,887.02 $ 65,637.34 $ 36,465.19 $ 11,849.97 $ 360,700.26 Notes:
• Assumes a possible 5% maximum yearly increase on all budget items, if approved annually by the District Management Corporation Board of Directors
• Any accrued interest or delinquent payments will be expended in the above categories. 17 The proposed Coast Village CBID is a property-based special benefit assessment district being established pursuant to the Santa Barbara local enabling ordinance as well as Section 36600 of the California Streets and Highway Code.

The state constitution refers to the requirement that benefits received from CBID funded programs and activities be used to determine the amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be received.

General vs. Special Benefits
As provided by Proposition 218, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. “Special Benefit” as defined by the California State Constitution, Article XIII (d), means “a particular and distinct benefit over and above general benefits conferred on real property located in the District or to the public at large.” For the purposes of this analysis, “General Benefits” are benefits provided within Coast Village District that are not special in nature, are not "particular and distinct" and are not over and above the benefits that other city parcels receive.

General benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. “At large” means not limited to any particular person – and means all members of the public - including those who live, work, and shop within the district - and not simply transient visitors.

The property uses within the boundaries of the proposed Coast Village CBID which will receive special benefits from CBID funded programs and services are currently a mix of retail, service, office, mixed use, residential, public visitor related, cultural and parking. Services, programs and improvements provided by the Coast Village CBID are primarily designed to provide special benefits to identified parcels within the boundaries of the District.

Parcels that derive benefit from the special benefit programs, services, activities and improvements outlined in this Management District Plan will attract more customers, employees, tenants and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales transactions, occupancies, and rental income, and for future residents, make Coast Village District more walkable, attractive and livable. These benefits are particular and distinct in that they are not provided to nonassessed parcels within or outside of the District. Because these programs, services and improvements will only be provided to each individual
Section 4
Assessment Methodology
18 assessed parcel within the Coast Village CBID boundaries, these programs, services and improvements will constitute "special benefits.”
Existing City of Santa Barbara services will not be replaced or duplicated by the Coast Village CBID funded services. The purpose of this District is to fund supplemental programs, improvements and services within the Coast Village District boundaries beyond what is being currently funded either via normal tax supported methods or other funding sources. The assessments to be levied on parcels within the Coast Village CBID are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased commercial property rental income and improved District identity. No CBID funded services, activities or programs will be provided beyond the Coast Village District CBID boundaries.

While every attempt is made to provide CBID services and programs to confer benefits only to those identified assessed parcels within the District, the California State Constitution, Article XIII (d), was amended via Proposition 218 to provide that general benefits exist, either by design or unintentionally, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the District, or “spillover” onto parcels surrounding the District, or to the public at large who might be passing through the District with no intention of transacting business or residing within the District or interest in the District itself. Empirical assessment engineering analysis throughout California has found that general benefits within a given similar special benefit district tend to range from 1-5% of the total costs.

There are three methods that have been used by the Coast Village CBID Assessment Engineer for determining general and special benefit values within assessment districts:
(1) The parcel-by-parcel allocation method
(2) The program/activity line-item allocation method, and (3) The composite district overlay determinant method.

A majority of PBIDs and CBIDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which will be used for this CBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the District, general benefit to the public at large within the District and general benefit to parcels outside the District.

Coast Village CBID Programs and Improvements
The total special and general benefit program activities and budget allocations that will be provided to each individual parcel assessed in the proposed Coast Village CBID are shown in the chart below:
19 Total Year 1 – 2022 Special + General Benefit Costs
Table 4-A
Category of Special
Benefit Services
Year 1
Annual Amount
(assessments to
fund special
benefits)
Year 1
Non-Assessment
Costs (general
benefits ratio)
Year 1
Total Costs
(special and
general benefits) % Of Total
Civil Sidewalks $120,000 $2,449 $122,449 40%
District Identity
/Placemaking $83,000 $1,694 $84,694 28%
Administration $54,000 $1,102 $55,102 18%
Capital
Improvements,
Traffic
Management
$30,000 $614 $30,614 10%
Contingency $9,749 $197 $9,946 4%
Total $296,749 $6,056 $ 302,805.00 100%
All program costs associated with general benefits will be derived from sources or credits other than CBID assessments. Sample “other” revenue sources can be derived from special events, grants, volunteer hours and must simply equal a total of $6,056 per year which would equal the general benefit cost of 2% of the computed total CBID cost of $302,805 from the table above. Here, program costs are spread among property variables that are common to each parcel include linear frontage, lot or parcel size and building square footage, and residential condominium parcels and benefit zone. Assessed valuation cannot be used as the basis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations. We must therefore spread the assessments among the consistent factors of each parcel, based upon 2021 data.

Assessable Data in the Coast Village CBID Table 4-B
Benefit Zone Building
Sq. Ft.

Lot SF Linear frontage Residential Condo/Apt.
1 394,680 1,063,657 8,085 157,322
2 70,155 238,747 1,842 4,868
Total 464,835 1,302,404 9,927 162,190
20 Assessment District Revenue Generation in Fiscal Year 2022 from Each Assessable Property Variable:

Table 4 - C
Property Variable
Total
Revenue Generated Percent of Budget
Building Sq. Ft. $80,864 27%
Lot Sq. Ft. $120,690 41%
Linear Frontage $75,732 25%
Residential Condos Bldg. Sq. Ft. $19,463 7%
Total $296,749 100%
Annual Costs per property variable and Benefit Zone, first year, FY 2022 Table 4 – D
Property Variable Benefit Zone 1 Benefit Zone 2
Building Square Footage $0.18 $0.14
Lot size $0.10 $0.06
Linear Frontage $8.00 $6.00
Residential Condos
Building Square Foot
$0.12 $0.12
Residential apartments, mixed use
developments
$0.12 $0.12
Explanation of Costs
Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Coast Village Road in the core area of the District. Benefit Zone 1 properties are the historic core of Santa Barbara’s Coast Village District dating back almost 60 years built around Coast Village Road. Zone 1 properties include retail, restaurants, residential, office, hotel and residential condominiums and apartments. These parcels will benefit the most from the CBID special benefit services, therefore their assessments have been set to fund the costs of services to these parcels.

The higher costs assessed to Benefit Zone 1 parcels are based upon:
• 6 to 7 day per week services, particularly for cleaning and beautification services. • Benefit Zone 1 parcels are predominantly retail, visitor related, service and pedestrian oriented therefore they will need civil sidewalk special benefit services daily, particularly on the weekends.

Holiday traffic will also necessitate cleaning services. • Traffic control during the Highway 101 reconstruction will also impact Coast Village Road, Benefit Zone 1 properties, more than the Benefit Zone 2 properties. • District identity services will also be proportionally higher and confer special benefit services relative to Benefit Zone 2 parcels. Special events will be held in Benefit Zone 1, thereby benefitting property owners and their tenants there, no special events will probably be held in Zone 2. • Benefit Zone 2 parcels have completely different land uses. Their stated desire for special benefit services includes those that are primarily found in Civil Sidewalk services. • Benefit Zone 2 parcels will need regular public rights of way cleaning and landscaping services 3 - 5 days per week compared to Zone 1 parcels which will need similar services daily. 21 The assessment costs of Benefit Zone 1 versus Benefit Zone 2 costs result in Benefit Zone 2 parcels paying anywhere from 66% to 75% per cent of the Zone 1 annual assessments. This is consistent with the anticipated frequency and type of services each Zone will require.

Benefit Zone 2 parcels include the parcels that are not fronting on Coast Village Road but rather front along Highway 101, including the far western parcels of the business district that are to be found just south of Highway 101. The land uses of Benefit Zone 2 parcels are office, retail, residential, and related parking uses.

The costs in Benefit Zone 2 are lower than that of Benefit Zone 1 due to the lack of density in this portion of the district and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties along Coast Village Road.

Linear Frontage Defined
Individual parcels will be assessed for all sides of each parcel fronting on a public street. Alley frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Civil Sidewalks special benefit services. The linear front footage data was obtained from the County Assessor’s parcel maps.

Building Square Footage Defined
Building square footage is defined as gross building square footage throughout the Coast Village CBID.

Lot Square Footage Defined
Lot square footage is defined as the total amount of area within the borders of the parcel. The lot square footage of a parcel has been verified by the County Assessor’s parcel maps.

Commercial Condominium (non-residential portion of mixed-use buildings) - Parcels Defined Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building.

Ground floor commercial condominiums will pay 100% of the special benefits for the assessment, based upon which benefit zone they are within.

Residential Condominium Unit Parcels Defined
Residential condominium units building square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the Coast Village CBID. Unlike the other commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Current and future residential condominium parcels are assessed as a separate category. These residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.12 per square foot per year for the first year of the CBID, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the building square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and property owner have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future residential apartment buildings can be bought or 22 sold just as like commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners and have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to current and future residential condominium individual assessed parcels since residential condominium owners have expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

A report was generated from data obtained from the Santa Barbara County Tax Assessors office.

A list of properties to be included within the District is provided in Section 7. 23 First Year (2022) Parcel Assessment Calculation:

The annual assessment method to calculate all parcels for Benefit Zone 1 will be:

Total Linear Frontage X $8.00 per foot
+
Total Building Square Footage X $0.18 per sq. ft. or $0.12 per sq. ft. for Mixed Use Apartments Total Lot Size x 0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all commercial parcels for Benefit Zone 2 will be:

Total Linear Frontage x $6.00 per square foot
+
Total Building Square Footage X $0.14 per square foot
+
Total Lot Size x $0.06 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all parcels for Mixed Use residential parcels in Zone 1 and 2 will be:

Total Linear Frontage x 8.00 per square foot
+
Total Building Square Footage X $0.12 per square foot
+
Total Lot Size x $0.10 per square foot
=

TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate the residential condominiums throughout the district will be:

Total Residential Condo Building Square Footage X $0.12 per square foot =

TOTAL PARCEL ASSESSMENT
24 Future Development
As a result of continued new development, the Coast Village CBID will experience the addition or subtraction of assessable commercial and residential buildings or the conversion of vacant parcels into new commercial and residential units. The Management District Plan assessment methodology will reflect any and all land use changes in the District with annual adjustments being submitted to the City, as these assessment calculation and property variable alterations occur. Therefore, parcels will be assessed each year based upon their then-current characteristics.

Maximum Assessment
Assessments may be subject to annual increases not to exceed 5% per year. Increases will be determined by the CBID District Management Corporation and will vary between 0% and 5% in any given year. The maximum the assessments may be increased is 5% over the previous fiscal year’s base assessments. The absence of increase in any given year does not give the District Management Corporation the authority to accumulate increases above 5% in any successive year. The following projections illustrate a potential 5% annual increase.

Maximum Assessments by Property Variable
Table 4 – E
Projected Assessments- Benefit Zone 1
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft.

Residential
Condo/Apt.

Bldg.

Sq. Ft.

Y1 $ 0.100 $ 8.000 $ 0.180 $ 0.120
Y2 $ 0.105 $ 8.400 $ 0.189 $ 0.126
Y3 $ 0.110 $ 8.820 $ 0.198 $ 0.132
Y4 $ 0.116 $ 9.261 $ 0.208 $ 0.139
Y5 $ 0.122 $ 9.724 $ 0.219 $ 0.146
Projected Assessments- Benefit Zone 2
Lot Sq. Ft Linear Frontage Non-Mixed Use
Bldg. Sq. Ft.

Residential
Condo/Apt Bldg.

Sq. Ft.

Y1 $ 0.10 $ 8.00 $ 0.140 $ 0.120
Y2 $ 0.630 $ 6.300 $ 0.147 $ 0.126
Y3 $ 0.662 $ 6.615 $ 0.154 $ 0.132
Y4 $ 0.695 $ 6.946 $ 0.162 $ 0.139
Y5 $ 0.729 $ 7.293 $ 0.170 $ 0.146
Term
Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. This management district plan will authorize the creation of the Coast Village CBID for the initial fiveyear period. 25 Time and Manner for Collecting Assessments
The Coast Village CBID assessments will appear as a separate line item on annual property tax bills prepared by the County of Santa Barbara Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. directly to the CBID property owners in late 2021 or early 2022 to fund the services outlined in this plan.

Unexpended surplus funds will be returned to property owners based upon each property owner’s percentage contribution to the previous fiscal year’s assessments.

Government Assessments
The Coast Village CBID Management Plan assumes that the any public or tax-exempt parcels shall pay into the district in proportion to the assessments paid for services. There are currently no public or tax-exempt parcels in the proposed Coast Village CBID.
26 There are no specific rules and regulations prescribed for the proposed Coast Village Community Benefit Improvement District Management Corporation except that it will adhere to the open meeting and open records provisions of the Public Records Act. Under the Ralph M. Brown Act the Owners Association will seek to be as open and transparent to the CBID assessees and the public at large as is reasonably possible.

A new Coast Village CBID District Management Corporation (501c3), will be established once the district has been formed and shall serve in the capacity of the Owners Association consistent with State Statute and the local enabling ordinance.

The Coast Village CBID is expected to be established and begin assessing benefiting parcels as of the fourth quarter of calendar year 2022. The delivery of services is scheduled to commence in or around the winter of 2023.

Section 5
District Rules and Regulations and Governance
Section 6
Implementation Timetable
27 Annual
Assessment
009-211-012 $4,208.30
009-211-013 $6,035.10
009-211-014 $4,805.52
009-211-035 $3,209.52
009-211-038 $5,472.20
009-211-040 $13,901.38
009-211-043 $17,088.54
009-212-012 $2,350.60
009-212-013 $989.60
009-221-006 $6,828.02
009-222-010 $7,820.44
009-222-011 $4,783.32
009-222-025 $19,556.02
009-222-027 $11,692.76
009-230-001 $3,490.32
009-230-002 $6,188.90
009-230-031 $2,005.90
009-230-032 $1,331.24
009-230-035 $3,795.20
009-230-037 $8,648.30
009-230-038 $2,664.98
009-281-003 $5,538.90
009-291-001 $4,039.16
009-291-002 $2,564.60
009-291-003 $3,220.00
009-291-004 $3,224.00
009-291-005 $4,697.06
009-291-007 $7,739.00
009-291-008 $10,946.80
009-291-009 $2,751.86
009-291-010 $2,088.14
009-291-011 $1,188.40
009-291-012 $2,063.60
009-291-013 $7,546.86
009-291-019 $2,469.52
009-291-023 $5,907.86
009-291-025 $1,249.44
009-291-027 $939.90
009-291-029 $3,539.20
009-291-034 $4,278.90
009-291-035 $4,332.92
009-291-036 $4,479.24
009-291-037 $4,682.70
009-293-001 $3,147.28
009-293-002 $2,652.70
009-293-005 $2,768.24
009-293-006 $2,098.08
009-293-007 $16,907.38
009-530-001 $145.08
009-530-002 $145.08
009-530-003 $145.08
009-530-004 $125.64
009-530-005 $129.24
009-530-006 $149.64
009-530-007 $157.56
009-530-008 $139.80
009-530-009 $143.76
009-530-010 $155.16
009-530-011 $147.60
009-530-012 $145.08
009-540-001 $145.08
009-540-002 $145.08
009-540-003 $145.08
009-540-004 $125.64
009-540-005 $129.24
009-540-006 $145.08
009-540-007 $162.72
009-540-008 $141.72
009-540-009 $143.76
009-540-010 $155.16
009-540-011 $147.60
009-540-012 $145.08
009-540-013 $145.08
009-550-001 $145.08
009-550-002 $145.08
009-550-003 $145.08
009-550-004 $125.64
009-550-005 $129.24
009-550-006 $145.08
009-550-007 $162.72
009-550-008 $141.72
009-550-009 $143.76
009-550-010 $155.16
009-550-011 $147.60
009-550-012 $145.08
009-550-013 $145.08
009-730-001 $788.98
009-730-002 $1,861.22
009-730-003 $1,500.40
009-730-004 $1,111.20
009-730-005 $0.00
009-740-001 $213.60
Section 7
Assessment Roll of Properties Included
28 009-740-002 $257.28
009-740-003 $1,003.92
009-740-004 $521.08
009-740-005 $488.12
009-740-006 $889.28
009-740-007 $236.88
009-740-008 $235.76
009-740-009 $254.52
009-740-010 $2,169.90
009-760-001 $378.36
009-760-002 $356.28
009-760-003 $284.16
009-760-004 $374.28
009-760-005 $447.00
009-760-006 $496.00
009-760-007 $421.12
009-760-008 $585.00
009-760-009 $768.36
009-760-010 $2,485.50
017-391-001 $3,821.86
017-391-002 $1,323.66
017-391-003 $2,049.92
017-391-008 $12,016.52
29 0

THE COAST VILLAGE

COMMUNITY BENEFIT IMPROVEMENT DISTRICT
ASSESSMENT ENGINEER’S
REPORT
Being established pursuant to the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code - Chapter 4.45)
Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates
February 6, 2022
v 3.0
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
1 ASSESSMENT ENGINEER’S REPORT
To Whom It May Concern:

I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Coast Village Community Benefit Improvement District ("CVCBID") being established for a five (5) year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property.

Introduction
This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution to support the benefit property assessments to be levied within the proposed CVCBID in the City of Santa Barbara, California being established for a five (5) year term. The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits derived by real properties within the proposed CVCBID.

February 6, 2022
3/31/22
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
2 Background
The CVCBID is a is a property-based benefit assessment type district being established for a five (5) year term pursuant to the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code - Chapter 4.45. The Ordinance was modeled after Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 (the “Act”). Due to the benefit assessment nature of assessments levied within a community benefit improvement district (“CBID”), district program costs are to be distributed amongst all identified benefiting properties based on the proportionate amount of special program benefit each property is projected to derive from the assessments levied. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportionate to the special benefits expected to be conferred on each assessed property.

Supplemental Article XIIID Section 4(b) California Constitution Procedures and Requirements
Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the CVCBID. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution (hereinafter Article XIIID).

Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the CVCBID, these supplemental requirements will be taken into account. The key provisions of Article XIIID along with a description of how the CVCBID complies with each of these provisions are delineated below.
(Note: All section references below pertain to Article XIII D of the California Constitution):

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
3 Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed”
Boundaries
The proposed CVCBID consists of 5-6 commercial blocks centered primarily along Coast Village Road generally between Olive Mill Road on the east and US Highway 101/just west of Cabrillo Boulevard on the west. The CVCBID includes 115 parcels owned by 94 property owners. See the CVCBID map in Appendix 2 of this Report.

The CVCBID is generally bounded by:
• On the south: bounded by the 101 freeway which runs on the south side of the CVCBID for most of Benefit Zone 1 properties and borders the north side of the CVCBID for the remaining Benefit Zone 2 properties.

• On the north: in general, the northern boundary of CVCBID is represented by the northern parcel lines for all of the parcels fronting along Coast Village Road. • On the west: The parcels included in Benefit Zone 2 ending at parcel 391-001-000 at the far end of the west side of the CVCBID.
• On the east: at Olive Mill Road or the entrance to the CVCBID from Highway 101.

Benefit Zones
The CVCBID consists of two benefit zones. Benefit Zone 1 properties front along Coast Village Road.

Parcels that front along both Highway 101 to the south side of in the core area will be classified as Zone 2 parcels, along with those parcels forming the western portion of the District, which are just south of the 101.

CVCBID Boundary Rationale
The CVCBID boundaries are comprised of parcels that showcase an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side to parcel 211-038-000.

The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided north of the northern CVCBID boundary.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
4 The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided west of the western CVCBID boundary.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

All identified parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Plan and in this Assessment Engineer’s Report. All CVCBID funded services, programs and improvements provided within the above described boundaries shall confer special benefit to identified assessed parcels inside the CVCBID boundaries and none will be provided outside of the CVCBID. Each assessed parcel within the CVCBID will proportionately specially benefit from the CVCBID funded Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve as described in more detail under “Work Plan”, beginning on page 11 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents and commercial/residential occupancy rates of parcels and businesses within the CVCBID by improving safety, reducing litter and debris and professionally marketing goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district. All CVCBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of assessed parcels within the boundaries of the CVCBID.

A list of all parcels included in the proposed CVCBID is shown as Appendix 1, attached to this Report with their respective Santa Barbara County assessor parcel number. The boundary of the proposed CVCBID and parcels within it are shown on the map of the CVCBID attached as Appendix 2 to this Report.
.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
5 Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “

The property uses within the boundaries of the CVCBID that will receive special benefits from CVCBID funded programs and services are currently an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums.

No parcels within the CVCBID are zoned solely residential. Services, programs and improvements provided and funded by the CVCBID are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the CVCBID.

The proposed CVCBID programs, improvements and services and Year 1 budget allocation are as follows:

Year 1 - CVCBID Special Benefit Cost Allocations (Assessment Revenue Only)

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 40.4382% 27.9698% 18.1972% 10.1096% 3.2853% 100%
1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967 87.9418% 2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782 12.0582% TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749 100.00% Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all CVCBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, CVCBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, safety and aesthetic appeal for patrons, visitors and employees of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the array of goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district.

For residential parcels and residential portions of mixed-use parcels within the CVCBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit, but differently than commercial type parcels, from CVCBID funded programs and services which are designed to improve the cleanliness, safety, marketability and livability of these parcels COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
6 and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the CVCBID. For these parcels, CVCBID programs, services and improvements are designed to increase residential rental occupancies and income. These programs, services and improvements are designed to improve safety and aesthetic appeal for tenants, visitors and landlords of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the availability of residential rental units within the CVCBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

These benefits are particular and distinct to each and every identified and assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

In the case of the CVCBID, the very nature of the purpose of this CBID is to fund supplemental programs, services and improvements to assessed parcels within the CVCBID boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the CVCBID are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the CVCBID. No CVCBID funded services, activities or programs will be provided outside of the CVCBID boundaries.

While every attempt is made to provide CVCBID services and programs to confer special benefits only to those identified assessed parcels within the CVCBID, Article XIIID stipulates that general benefits exist either by design or unintentional in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues.

Empirical assessment engineering analysis throughout California has found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for the CVCBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the CVCBID, general benefit to the public at large within the CVCBID and general benefit to parcels outside the CVCBID.
.

General Benefit – Assessed Parcels within the CVCBID
CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 115 parcels within the CVCBID are distinct and special but in the case of the CVCBID, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the CVCBID funded programs and services are specially geared to the unique needs of each parcel within the CVCBID and are directed specially only to these parcels within the CVCBID. This concept is further reinforced by COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
7 the proportionality of special benefits conferred on each parcel within the CVCBID as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 115 parcels within the CVCBID equates to $748 or (.25% x $296,749).

General Benefits – Outside Parcels
While CVCBID programs and services will not be provided directly to parcels outside the CVCBID boundaries, it is reasonable to conclude that CVCBID services may confer an indirect general benefit on parcels adjacent to the CVCBID boundaries. An inventory of the CVCBID boundaries finds that the CVCBID is immediately surrounded by 35 parcels. Of these 35 parcels, 2 are commercial zoned parcels with commercial uses, 30 are residentially zoned parcels with residential uses and 3 are publicly owned parcels with public uses.

The 35 parcels directly outside the CVCBID boundaries can reasonably be assumed to receive some indirect general benefit as a result of CVCBID funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 115 parcels within the CVCBID, a benefit factor of 0.05 be attributed to general benefits conferred on the 2 commercial parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID, a benefit factor of 0.01 be attributed to general benefits conferred on the 30 residential parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID and, a benefit factor of 0.01 be attributed to general benefits conferred on the 3 publicly owned parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID.

The cumulative dollar value of this general benefit type equates to $1,109 ($258 + $77 + $774) as delineated in the following Table:

Parcel Type Quantity Benefit
Factor
Benefit
Units
Benefit
Percent
Benefit
Value
Parcels within CVCBD 115 1.000 115.00 99.6275% $296,749 Commercial parcels outside of CVCBD 2 0.050 0.10 0.0866% $258 Public parcels outside of CVCBD 3 0.010 0.03 0.0260% $77 Residential use parcels outside of CVCBD 30 0.010 0.30 0.2599% $774 TOTAL 115.43 100.00% $297,859
General Benefit - Public At Large
While the CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID, these programs also provide general benefits to the public at large within the CVCBID.

For CBID type activities, assessment Engineering experience in California has found that generally over 95% of people moving about within CBID boundaries are engaged in business related to assessed parcels and businesses contained on them within a CBID, while the public at large “just passing through” is typically 5% or less.

Based on experience curves and the nature of the proposed CVCBID funded programs and over 30 years of assessment engineering experience, it is the opinion of this Engineer that districtwide general benefit factors for each of the CVCBID funded special benefit program element costs that most likely provide a COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
8 general benefit to the public at large are as shown in the Table below. These factors are applied to each program element costs in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $3,284 as delineated in the following Table:

A B C E
Program Element Dollar
Allocation
General
Benefit
Percent
General
Benefit
Factor
General Benefit
Value (A x C)
CIVIL SIDEWALKS $120,000 2.00% 0.020 $2,400
DISTRICT IDENTITY & PLACEMAKING $83,000 0.50% 0.005 $415 CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $30,000 0.50% 0.005 $150 ADMINISTRATION & PROGRAM MANAGEMENT $54,000 0.50% 0.005 $270 CONTINGENCY & RESERVE $9,749 0.50% 0.005 $49
TOTAL $296,749 $3,284
Composite General Benefit
Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the CVCBID, on parcels outside the CVCBID, and on the public at large, equates to $5,135 ($742 + $1,109 + $3,284) or 1.701%. For the purposes of this analysis, the districtwide general benefit factor of 1.701% will be rounded up to 2% or $6,056. This leaves a value of 98% assigned to special benefit related costs. The districtwide general benefit value of $6,056 when added to the special benefit value of $296,749 (Year 1 assessments) equates to a total Year 1 program cost of $302,805. Remaining costs that are attributed to districtwide general benefits, will need to be derived from other non-assessment sources.

The program special benefit related cost allocations of the CVCBID assessment revenues for Year 1 are shown in the Table on page 14 of this Report. The projected program special benefit related cost allocations of the CVCBID assessment revenues for the 5-year CVCBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 1 1 CIVIL SIDEWALKS $105,530 $2,154 $107,684 40.4382% DISTRICT IDENTITY & PLACEMAKING $72,992 $1,490 $74,482 27.9698% ADMINISTRATION & PROGRAM MANAGEMENT $47,489 $969 $48,458 18.1972% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $26,383 $538 $26,921 10.1096% CONTINGENCY & RESERVE $8,573 $175 $8,748 3.2853%
SUBTOTAL $260,967 $5,326 $266,293 100%
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
9 2 CIVIL SIDEWALKS $14,470 $295 $14,765 40.4382%
DISTRICT IDENTITY & PLACEMAKING $10,008 $204 $10,212 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $6,511 $133 $6,644 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $3,617 $74 $3,691 10.1096% CONTINGENCY & RESERVE $1,176 $24 $1,200 3.2853%
SUBTOTAL $35,782 $730 $36,512 100%
1&2 CIVIL SIDEWALKS $120,000 $2,449 $122,449 40.4382%
DISTRICT IDENTITY & PLACEMAKING $83,000 $1,694 $84,694 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $54,000 $1,102 $55,102 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $30,000 $612 $30,612 10.1096% CONTINGENCY & RESERVE $9,749 $199 $9,948 3.2853%
TOTAL YEAR 1 $296,749 $6,056 $302,805 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 2 1 CIVIL SIDEWALKS $110,807 $2,262 $113,069 40.4382% DISTRICT IDENTITY & PLACEMAKING $76,642 $1,565 $78,207 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $49,863 $1,017 $50,880 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $27,702 $565 $28,267 10.1096% CONTINGENCY & RESERVE $9,002 $184 $9,186 3.2853%
SUBTOTAL $274,016 $5,593 $279,609 100%
2 CIVIL SIDEWALKS $15,194 $310 $15,504 40.4382%
DISTRICT IDENTITY & PLACEMAKING $10,508 $214 $10,722 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $6,837 $140 $6,977 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $3,798 $78 $3,876 10.1096% CONTINGENCY & RESERVE $1,235 $25 $1,260 3.2853%
SUBTOTAL $37,572 $767 $38,339 100%
1&2 CIVIL SIDEWALKS $126,001 $2,572 $128,573 40.4382%
DISTRICT IDENTITY & PLACEMAKING $87,150 $1,779 $88,929 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $56,700 $1,157 $57,857 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $31,500 $643 $32,143 10.1096% CONTINGENCY & RESERVE $10,237 $209 $10,446 3.2853%
TOTAL YEAR 2 - 2023 $311,588 $6,360 $317,948 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 3 1 CIVIL SIDEWALKS $116,347 $2,375 $118,722 40.4382% DISTRICT IDENTITY & PLACEMAKING $80,474 $1,643 $82,117 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $52,356 $1,068 $53,424 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $29,087 $593 $29,680 10.1096% CONTINGENCY & RESERVE $9,452 $193 $9,645 3.2853%
SUBTOTAL $287,716 $5,872 $293,588 100%
2 CIVIL SIDEWALKS $15,954 $326 $16,280 40.4382%
DISTRICT IDENTITY & PLACEMAKING $11,033 $225 $11,258 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $7,179 $147 $7,326 18.1972% COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
10 ADMINISTRATION & PROGRAM MANAGEMENT $3,988 $82 $4,070 10.1096% CONTINGENCY & RESERVE $1,297 $26 $1,323 3.2853%
SUBTOTAL $39,451 $806 $40,257 100%
1&2 CIVIL SIDEWALKS $132,301 $2,701 $135,002 40.4382%
DISTRICT IDENTITY & PLACEMAKING $91,507 $1,868 $93,375 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $59,535 $1,215 $60,750 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $33,075 $675 $33,750 10.1096% CONTINGENCY & RESERVE $10,749 $219 $10,968 3.2853%
TOTAL YEAR 3 - 2024 $327,167 $6,678 $333,845 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 4 1 CIVIL SIDEWALKS $122,164 $2,494 $124,658 40.4382% DISTRICT IDENTITY & PLACEMAKING $84,498 $1,725 $86,223 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $54,974 $1,121 $56,095 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $30,541 $623 $31,164 10.1096% CONTINGENCY & RESERVE $9,925 $203 $10,128 3.2853%
SUBTOTAL $302,102 $6,166 $308,268 100%
2 CIVIL SIDEWALKS $16,752 $342 $17,094 40.4382%
DISTRICT IDENTITY & PLACEMAKING $11,585 $236 $11,821 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $7,538 $154 $7,692 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $4,187 $86 $4,273 10.1096% CONTINGENCY & RESERVE $1,362 $27 $1,389 3.2853%
SUBTOTAL $41,424 $845 $42,269 100%
1&2 CIVIL SIDEWALKS $138,916 $2,836 $141,752 40.4382%
DISTRICT IDENTITY & PLACEMAKING $96,083 $1,961 $98,044 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $62,512 $1,275 $63,787 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $34,728 $709 $35,437 10.1096% CONTINGENCY & RESERVE $11,287 $230 $11,517 3.2853%
TOTAL YEAR 4 - 2025 $343,526 $7,011 $350,537 100%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 5 1 CIVIL SIDEWALKS $128,272 $2,619 $130,891 40.4382% DISTRICT IDENTITY & PLACEMAKING $88,723 $1,811 $90,534 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $57,723 $1,177 $58,900 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $32,068 $654 $32,722 10.1096% CONTINGENCY & RESERVE $10,421 $213 $10,634 3.2853%
SUBTOTAL $317,207 $6,474 $323,681 100%
2 CIVIL SIDEWALKS $17,590 $359 $17,949 40.4382%
DISTRICT IDENTITY & PLACEMAKING $12,164 $248 $12,412 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $7,915 $162 $8,077 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $4,396 $90 $4,486 10.1096% CONTINGENCY & RESERVE $1,430 $28 $1,458 3.2853%
SUBTOTAL $43,495 $887 $44,382 100%
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
11 1&2 CIVIL SIDEWALKS $145,862 $2,978 $148,840 40.4382% DISTRICT IDENTITY & PLACEMAKING $100,887 $2,059 $102,946 27.9698% CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT $65,638 $1,339 $66,977 18.1972% ADMINISTRATION & PROGRAM MANAGEMENT $36,464 $744 $37,208 10.1096% CONTINGENCY & RESERVE $11,851 $241 $12,092 3.2853%
TOTAL YEAR 5 - 2026 $360,702 $7,361 $368,063 100%

CVCBID WORK PLAN
Overview
The services, programs and improvements to be funded by the CVCBID include Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve. The property uses within the boundaries of the CVCBID that will receive special benefits from CVCBID funded programs, services and improvements are currently an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums. Services, programs and improvements provided and funded by the CVCBID are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the CVCBID. The varying programmed service levels in each benefit zone are delineated within each work plan element description.

These special benefits are particular and distinct to each and every identified assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

The very nature of the purpose of the CVCBID is to fund supplemental programs, services and improvements to assessed parcels within the CVCBID boundaries above and beyond the base line services provided by the City of Santa Barbara. The City of Santa Barbara does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the CVCBID are for services, programs and improvements directly benefiting each individual assessed parcel within the CVCBID. No CVCBID funded services, activities or programs will be provided outside of the CVCBID boundaries.

The program special benefit cost allocations of the CVCBID assessment revenues for Year 1 are shown in the Table on page 14 of this Report. The projected program special benefit cost allocations of the CVCBID assessment revenues for the 5-year CVCBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

WORK PLAN DETAILS
The services to be provided by the CVCBID (i.e. Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve) are all designed to contribute to the cohesive commercial and residential fabric to ensure economic success and vitality of the CVCBID. The assessed parcels in the CVCBID will specially benefit from the CVCBID programs in the form of increasing commerce and improving economic success and COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
12 vitality through meeting the CVCBID Goals: to improve safety, cleanliness, beautification, landscaping, livability and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel.

Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all CVCBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, CVCBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, safety and aesthetic appeal for patrons, visitors and employees of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the array of goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district.

For residential parcels and residential portions of mixed-use parcels within the CVCBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit, but differently than commercial type parcels, from CVCBID funded programs and services which are designed to improve the cleanliness, safety, marketability and livability of these parcels and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the CVCBID. For these parcels, CVCBID programs, services and improvements are designed to increase residential rental occupancies and income. These programs, services and improvements are designed to improve safety and aesthetic appeal for tenants, visitors and landlords of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the availability of residential rental units within the CVCBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

The following programs, services and improvements are proposed by the CVCBID to specially benefit each and every individually assessed parcel within the CVCBID boundaries. CVCBID services, programs and improvements will not be provided to parcels outside the CVCBID boundary. Assessment funds generated in each benefit zone shall only be used to provide services which specially benefit individual assessed parcels within that benefit zone.

CIVIL SIDEWALKS:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Beautification of the CVCBID
• Tree and vegetation maintenance (over and above city services) • Maintenance of existing and new public spaces
• Installation of and maintenance of landscaping throughout the CVCBID • Periodic sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Enhanced trash emptying (over and above city services) COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
13 • Organization and oversight of trash collection & news racks • Timely graffiti removal, within 24 hours as necessary • Personnel to manage the in-house or contracted maintenance and/or landscaping teams.
• Farmers market assistance
• Refurbishment of street signs and monuments
CVCBID IDENTITY & PLACEMAKING:

Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins
• In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road • Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
14 ADMINISTRATION & PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

CONTINGENCY & RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves, capital project improvements In summary, all CVCBID funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the CVCBID boundaries and none will be provided outside of the CVCBID. Each assessed parcel within the CVCBID will proportionately specially benefit from Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve. These services, programs and improvements are intended to improve commerce, employment, rents and occupancy rates of assessed parcels within the CVCBID by deterring crime, reducing litter, installing physical improvements and professionally marketing goods, services and spaces available within the CVCBID, all necessary in a competitive properly managed contemporary mixed-use business district. All CVCBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of each and every assessed parcel within the boundaries of the CVCBID.

WORK PLAN BUDGET
Each identified assessed parcel within the CVCBID will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of CVCBID funded services provided within each benefit zone. The projected CVCBID program special benefit (assessments) allocation budget for Year 1 is shown in the following Table:

CVCBID Year 1 - Special Benefit Assessment Budget by Zone

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 40.4382% 27.9698% 18.1972% 10.1096% 3.2853% 100%
1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967 87.9418% 2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782 12.0582% TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749 100.00% In order to carry out the CVCBID programs outlined in the previous section, a Year 1 assessment budget of $296,749 is projected. Since the CVCBID is planned for a 5-year term, projected program costs for COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
15 future years (Years 2-5) are set at the inception of the CVCBID. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year CVCBID term.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed CVCBID. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories, based on such cost fluctuations subject to the review and approval by the Owners’ Association Board. Such reallocation will be included in the Annual Report for the approval by the City of Santa Barbara City Council pursuant to the Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category in accordance with The Management District Plan.

A 5-year projected CVCBID special benefit budget is shown in the following Table:

YEARS 1-5 PROJECTED CVCBID ASSESSMENT BUDGET SUMMARY (Special Benefits) (Assumes 5% max rate increase per year)

YEAR

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL
% 40.4382% 27.9698% 18.1972% 10.1096% 3.29% 100.00%
1 1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967
2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782
TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749
2 1 $110,807 $76,642 $49,863 $27,702 $9,002 $274,016
2 $15,194 $10,508 $6,837 $3,798 $1,235 $37,572
TOTAL $126,001 $87,150 $56,700 $31,500 $10,237 $311,588 3 1 $116,347 $80,474 $52,356 $29,087 $9,452 $287,716
2 $15,954 $11,033 $7,179 $3,988 $1,297 $39,451
TOTAL $132,301 $91,507 $59,535 $33,075 $10,749 $327,167 4 1 $122,164 $84,498 $54,974 $30,541 $9,925 $302,102
2 $16,752 $11,585 $7,538 $4,187 $1,362 $41,424
TOTAL $138,916 $96,083 $62,512 $34,728 $11,287 $343,526 5 1 $128,272 $88,723 $57,723 $32,068 $10,421 $317,207
2 $17,590 $12,164 $7,915 $4,396 $1,430 $43,495
TOTAL $145,862 $100,887 $65,638 $36,464 $11,851 $360,702 COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
16 The CVCBID assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of Santa Barbara City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the CVCBID) shall determine the percentage increase, if any, to the annual assessment, not to exceed 5% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the CVCBID operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Santa Barbara. No bonds are to be issued in conjunction with the proposed CVCBID.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewal budget or returned to stakeholders in accordance with State Law. CVCBID assessment funds may be used to pay for costs related to the following CVCBID renewal term. If the CVCBID is not renewed or terminated for any reason, unencumbered/unexpended funds will be returned to the property owners in accordance with State Law.

Each identified assessed parcel within the CVCBID will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified assessed parcel within the CVCBID as a whole and the Benefit Zone in which it is located. Larger parcels and those with larger buildings and/or street frontages and/or ones located in Zone 1 are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings and/or street frontages and/or located in Zone 2 and thus, are assigned a greater proportionate degree of assessment program and service costs. The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
17 Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed CVCBID, they are also considerably less than other options considered by the CVCBID Formation Advisory Committee. The actual assessment rates for each parcel within the CVCBID directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”
Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are currently no publicly owned parcels within the boundaries of the proposed CVCBID. In, the future, should any other parcels be acquired by a public agency, it is the opinion of this Assessment Engineer that there is no clear and convincing evidence that such parcels would not receive special benefits and thus, would not be exempt from assessments nor assessed differently than privately owned parcels.

Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed CVCBID.

Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.”
The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Management District Plan and this Report. The proposed CVCBID and resultant assessment levies will continue for 5 years and may be renewed again at that time. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each CVCBID assessed parcel within two benefit zones, except as noted herein.

Assessment Formula Methodology
Step 1. Select “Basic Benefit Unit(s)”
Background - Assessment Formula Development
The method used to determine special benefits derived by each identified assessed property within a CBID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
18 as those proposed in the CVCBID, the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by a CBID in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis.

Next, all program and activity costs, including incidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or “special” benefits related costs may be used. Indirect or general benefits must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See page 17 of this Report for discussion regarding publicly owned parcels within the CVCBID).

The method and basis of spreading program costs varies from one CBID to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBIDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or “stepped-down” benefits derived.

CVCBID Assessment Formula
Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. civil sidewalks, district identity & placemaking, capital improvements & traffic management, administration & program management and contingency & reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage (excluding public alleys) of each parcel within two benefit zones, except as noted herein.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
19 The “Basic Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”), and in the case of residential condo parcels, building square footage (Benefit Unit “D”). Based on the shape of the proposed CVCBID, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage within two benefit zones, except as noted herein.

In the opinion of this Assessment Engineer, the targeted weight of Zone 1 revenue to match the projected costs of Zone 1 services, should generate approximately 90% of the total CVCBID revenue (87.9418% when adjusted for precise parcel measurements and program costs and service levels).

In the opinion of this Assessment Engineer, the targeted weight of Zone B revenue to match the projected costs of Zone B services, should generate approximately 10% of the total CVCBID revenue (12.0582% when adjusted for precise parcel measurements and program costs and service levels).

The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBID funded services, programs and improvements. These factors directly relate to the degree of special benefit each assessed parcel will receive from CVCBID funded activities within each benefit zone.

Building area (Benefit Unit A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on CVCBID funded activities. The combined weight of Units A & D is

33.808625%. Unit A will generate 27.24996% of the overall assessment revenue. Unit D will generate

6.504689% of the overall assessment revenue
Land area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on CVCBID funded activities. Unit B will generate

40.670852% of the overall assessment revenue.

Street frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on CVCBID funded activities. Unit C will generate 25.520521% of the overall assessment revenue.

Special Assessment Circumstances

1. Internal Structured Parking Building Area
It is the opinion of this Assessment Engineer that building area for private parking within a building shall not be assessed. Public parking, whether internal or external, will be assessed for the building area of such parking as well as the underlying parcel land area and street frontage.

2. Residential Condominiums
There are currently 45 residential condominium units within the CVCBID. It is the opinion of this Assessment Engineer that these residential condominium parcels will proportionately specially benefit from CVCBID funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
20 3. Multi-Unit Residential (rental)
In the opinion of this Engineer, parcels with multi-unit residential uses (currently 2) within the proposed CVCBID), will proportionately specially benefit from CVCBID funded programs, services and improvements but different than commercial parcels and uses. In the opinion of this Engineer, the level of benefit for the proposed CVCBID funded programs, services and improvements for multi-unit residential use parcels shall be based on the reduced building rate applied to residential condominiums but the same as the respective zone rates of commercial parcels and uses for parcel land area and street frontage.

4. Commercial and Mixed-Use Condominiums
Ground floor commercial condominiums within the CVCBID shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows:

Multi-Floor Commercial Only Condominiums (Upper Floors) - Building area assessed at respective building area rate Multi-Floor Mixed-Use Condominiums
- Commercial condo (See # 5 above)
- Residential condo (See # 2 above)
Changes to Building and/or Parcel Size
Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments.

Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Plan would require a new Article XIIID ballot procedure in order to approve any such changes.

Step 2. Quantify Total Basic Benefit Units
Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table:

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
21 Year 1 - Assessable Benefit Units

BENEFIT
ZONE

BLDG AREA
(SQ FT)

LAND AREA
(SQ FT)
STREET

FRONTAGE
(LN FT)
RESID
CONDO

BLDG AREA
(SQ FT)
# of

PARCELS
1 394,680 1,063,657 8,085 157,322 104
2 70,155 238,747 1,842 4,868 11
TOTAL 464,835 1,302,404 9,927 162,190 115
Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative assessment revenue by factor and zone are shown in the following Table:

Year 1 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE
RESID
CONDO

BLDG AREA

REVENUE
TOTAL
REVENUE %
1 $71,042.40 $106,365.70 $64,680.00 $18,878.64 $260,966.74 87.9418% 2 $9,821.70 $14,324.82 $11,052.00 $584.16 $35,782.68 12.0582% TOTAL $80,864.10 $120,690.52 $75,732.00 $19,462.80 $296,749.42 100.00% 1 23.940198% 35.843608% 21.796167% 6.361812% 87.9418%
2 3.309762% 4.827244% 3.724354% 0.196853% 12.0582%
TOTAL 27.249960% 40.670852% 25.520521% 6.558665% 100.0000% Step 3. Calculate Benefit Units for Each Property.

The number of Benefit Units for each identified benefiting parcel within the proposed CVCBID was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the CVCBID for their review. If a property owner believes there is an error on a parcel’s assessed footages, the CVCBID may confirm the data with the Santa Barbara County Assessor’s office. If CVCBID data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the CVCBID assessment may be corrected.

Step 4. Determine Assessment Formula
In the opinion of this Engineer, the assessment formula for the proposed CVCBID is as follows:

Assessment = Building Area (Unit A) Sq Ft x Unit A Rate, plus Land Area (Unit B) Sq Ft x Unit B Rate, plus
Street Frontage (Unit C) Lin Ft x Unit C Rate
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
22 or
= Residential Condo Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates
Based on figures from the Assessable Benefit Units Table on page 21, the assessment rates for each factor and zone are shown as calculated in the Table below:

YEAR 1 - Assessment Rates

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)

RESID CONDO

BLDG AREA

ASSMT RATE
($/SQ FT)
1 $0.1800 $0.1000 $8.0000 $0.1200
2 $0.1400 $0.0600 $6.0000 $0.1200
The complete Year 1 assessment roll of all parcels to be assessed by the CVCBID is included in this Plan as Appendix I.

Step 5. Estimate Total CVCBID Costs
The total projected 5-year CVCBID special benefit costs are shown in the Table on page 15 of this Report assuming a maximum 5% increase per year.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $302,805. Districtwide general benefits are factored at 2% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit value is computed to be $6.056 with a resultant 98% special benefit limit computed at $296,749. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All program costs associated with district wide and site/activity specific general benefits will be derived from sources other than CVCBID assessments.

Step 7. Calculate “Basic Unit Cost”
With a YR 1 assessment revenue portion of the budget set at $296,749 (special benefit only), the Basic Unit Costs (rates) are shown earlier in Step 4. Since the CVCBID is proposed for a 5-year term, maximum assessments for future years must be set at the inception of the proposed CVCBID. An annual inflationary assessment rate increase of up to 5%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the CVCBID Property Owner’s Association.

The maximum assessment rates for the 5-year proposed CVCBID term of are shown in the Table below.

The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the proposed CVCBID term.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
23 CVCBID – 5-year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)
RESID

CONDO BLDG

AREA ASSMT
RATE ($/SQ
FT)
YEAR 1
1 $0.1800 $0.1000 $8.0000 $0.1200
2 $0.1400 $0.0600 $6.0000 $0.1200
YEAR 2
1 $0.1890 $0.1050 $8.4000 $0.1260
2 $0.1470 $0.0630 $6.3000 $0.1260
YEAR 3
1 $0.1985 $0.1103 $8.8200 $0.1323
2 $0.1544 $0.0662 $6.6150 $0.1323
YEAR 4
1 $0.2084 $0.1158 $9.2610 $0.1389
2 $0.1621 $0.0695 $6.9458 $0.1389
YEAR 5
1 $0.2188 $0.1216 $9.7241 $0.1458
2 $0.1702 $0.0730 $7.2931 $0.1458
Step 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the CVCBID are shown in the Management District and this Report and were determined by applying the CVCBID assessment formula to each identified benefiting property.

Miscellaneous CVCBID Provisions
Time and Manner of Collecting Assessments:

Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of Santa Barbara. The CVCBID assessments shall appear as a separate line item on the property tax bills issued by the Santa Barbara County Assessor. The City of Santa Barbara is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Management District Plan.

Bonds:

No bonds are to be issued in conjunction with this proposed CVCBID.

Duration
As allowed by the Ordinance, the CVCBID will have a five (5) year operational term.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
24 APPENDIX 1
CVCBID
YEAR 1

ASSESSMENT ROLL
25 APN Year 1
Assessment
009-211-012 $4,208.30
009-211-013 $6,035.10
009-211-014 $4,805.52
009-211-035 $3,209.52
009-211-038 $5,472.20
009-211-040 $13,901.38
009-211-043 $17,088.54
009-212-012 $2,350.60
009-212-013 $989.60
009-221-006 $6,828.02
009-222-010 $7,820.44
009-222-011 $4,783.32
009-222-025 $19,556.02
009-222-027 $11,692.76
009-230-001 $3,490.32
009-230-002 $6,188.90
009-230-031 $2,005.90
009-230-032 $1,331.24
009-230-035 $3,795.20
009-230-037 $8,648.30
009-230-038 $2,664.98
009-281-003 $5,538.90
009-291-001 $4,039.16
009-291-002 $2,564.60
009-291-003 $3,220.00
009-291-004 $3,224.00
009-291-005 $4,697.06
009-291-007 $7,739.00
009-291-008 $10,946.80
009-291-009 $2,751.86
009-291-010 $2,088.14
009-291-011 $1,188.40
009-291-012 $2,063.60
009-291-013 $7,546.86
009-291-019 $2,469.52
009-291-023 $5,907.86
009-291-025 $1,249.44
009-291-027 $939.90
009-291-029 $3,539.20
009-291-034 $4,278.90
009-291-035 $4,332.92
009-291-036 $4,479.24
009-291-037 $4,682.70
009-293-001 $3,147.28
009-293-002 $2,652.70
009-293-005 $2,768.24
009-293-006 $2,098.08
009-293-007 $16,907.38
009-530-001 $145.08
009-530-002 $145.08
009-530-003 $145.08
009-530-004 $125.64
009-530-005 $129.24
009-530-006 $149.64
009-530-007 $157.56
009-530-008 $139.80
009-530-009 $143.76
009-530-010 $155.16
009-530-011 $147.60
009-530-012 $145.08
009-540-001 $145.08
009-540-002 $145.08
009-540-003 $145.08
009-540-004 $125.64
009-540-005 $129.24
009-540-006 $145.08
009-540-007 $162.72
009-540-008 $141.72
009-540-009 $143.76
009-540-010 $155.16
009-540-011 $147.60
009-540-012 $145.08
009-540-013 $145.08
009-550-001 $145.08
009-550-002 $145.08
009-550-003 $145.08
009-550-004 $125.64
009-550-005 $129.24
009-550-006 $145.08
009-550-007 $162.72
009-550-008 $141.72
009-550-009 $143.76
009-550-010 $155.16
009-550-011 $147.60
009-550-012 $145.08
009-550-013 $145.08
009-730-001 $788.98
009-730-002 $1,861.22
009-730-003 $1,500.40
009-730-004 $1,111.20
009-730-005 $0.00
009-740-001 $213.60
009-740-002 $257.28
009-740-003 $1,003.92
009-740-004 $521.08
009-740-005 $488.12
009-740-006 $889.28
009-740-007 $236.88
009-740-008 $235.76
009-740-009 $254.52
009-740-010 $2,169.90
009-760-001 $378.36
009-760-002 $356.28
009-760-003 $284.16
009-760-004 $374.28
009-760-005 $447.00
009-760-006 $496.00
009-760-007 $421.12
009-760-008 $585.00
009-760-009 $768.36
009-760-010 $2,485.50
017-391-001 $3,821.86
017-391-002 $1,323.66
017-391-003 $2,049.92
017-391-008 $12,016.52
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
26 APPENDIX 2

CVCBID BOUNDARY MAP
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
27 RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA REQUESTING THE BOARD OF

SUPERVISORS OF SANTA BARBARA COUNTY TO

INCLUDE THE DOWNTOWN COMMUNITY BENEFIT

IMPROVEMENT DISTRICT SPECIAL ASSESSMENT ON
THE 2024-2025 TAX ROLL
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (the “CBID Ordinance”) authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (the “State Law”) except to the extent the provisions of the State Law are inconsistent with the provisions of the CBD Ordinance; and
WHEREAS, on April 16, 2024, in response to a petition by property owners that satisfied the requirements of Section 4.45.060 of the CBID Ordinance, the City Council adopted Resolution No 24-037 (“Resolution of Intention”), declaring the intention of the City Council to establish the Downtown Community Benefit Improvement District (“District”) pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District (“Assessment”); and
WHEREAS, on June 25, 2024, a public hearing was conducted in accordance with California Constitution article XIIID (Proposition 218) and applicable law and after the public hearing the City Council found and declared a majority protest against the District and the Assessment did not exist, and the City Council adopted Resolution No 24-079 forming the District and levying assessments pursuant to the CBID Ordinance.

WHEREAS, The initial term of the District will run for five years, beginning in Fiscal Year 2024-25 and running through Fiscal Year 2028-2029. The District will terminate on June 30, 2029 unless renewed pursuant to the CBD Ordinance.

WHEREAS, As provided in Resolution No. 24-079, an assessment will be levied annually against real property in the District. The assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax, notwithstanding anything to the contrary in the Management District Plan (“MDP”) with respect to assessment year one.

NOW THEREFORE, the City of Santa Barbara City Council hereby resolves the following:

1. The above recitals are true and correct.

2. Street and Highways Code section 36631 authorizes the District to provide for the collection of the District assessment in the same manner and subject to the same penalties as, or with, other charges and taxes fixed and collected by the Santa Barbara County.

3. An assessment is proposed to be levied annually against real property in the District. Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax. The rate of the proposed assessment is set forth in the MDP, particularly in the rate table set forth on page 24 of the MDP. The total amount of the assessment for Fiscal Year 2024-25 is proposed to be $2,202,753.

4. The City, on behalf of the District, will comply or has complied with all requirements set forth in correspondence from the Auditor-Controller including executing an agreement to place the Special Assessment Tax on the tax roll and submitting the Fixed Charge Data file in the specified format. The City Clerk or designee is hereby requested to deliver a copy of this Resolution to the County Auditor.

RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA REQUESTING THE BOARD OF

SUPERVISORS OF SANTA BARBARA COUNTY TO

INCLUDE THE COAST VILLAGE COMMUNITY BENEFIT

IMPROVEMENT DISTRICT SPECIAL ASSESSMENT ON
THE 2024-2025 TAX ROLL
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (the “CBID Ordinance”) authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (the “State Law”) except to the extent the provisions of the State Law are inconsistent with the provisions of the CBD Ordinance; and
WHEREAS, on March 29, 2022 in response to a petition by property owners that satisfied the requirements of Section 4.45.060 of the CBID Ordinance, the City Council adopted Resolution No 22-023 (“Resolution of Intention”), declaring the intention of the City Council to establish the Coast Village Community Benefit Improvement District (“District”) pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District (“Assessment”); and
WHEREAS, on June 7, 2022, a public hearing was conducted in accordance with California Constitution article XIIID (Proposition 218) and applicable law and after the public hearing the City Council found and declared a majority protest against the District and the Assessment did not exist, and adopted Resolution No 22-049 forming the District and levying assessments pursuant to the CBID Ordinance.

WHEREAS, The initial term of the District will run for five years, beginning in Fiscal Year 2022-23 and running through Fiscal Year 2026-2027. The District will terminate on June 30, 2027 unless renewed pursuant to the CBD Ordinance.

NOW THEREFORE, the City of Santa Barbara City Council hereby resolves the following:

1. The above recitals are true and correct.

3. An assessment will be levied annually against real property in the District.

Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax.

The rate of the proposed assessment is set forth in the MDP, particularly in the rate table set forth on page 24 of the MDP. The total amount of the assessment for Fiscal Year 2024-25 is $308,025.87.

4. The City, on behalf of the District, will comply or has complied with all requirements set forth in correspondence from the Auditor-Controller including executing an agreement to place the assessment on the tax roll and submitting the Fixed Charge Data file in the specified format. The City Clerk or designee is hereby requested to deliver a copy of this Resolution to the County Auditor.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: September 10, 2024
TO: Mayor and Councilmembers
FROM: Human Resources Department
SUBJECT: Resolution Approving the 2024-2026 Hourly Employees Bargaining Unit Memorandum of Understanding, and Amendment of Resolution No. 24-071, the Position and Salary Control Resolution for Fiscal Year 2025 [Resolution]
RECOMMENDATION: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Adopting the 2024-2026 Memorandum of Understanding Between the City of Santa Barbara and the Service Employees' International Union, Local 620, Hourly Employees’ Bargaining Unit; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-071, the Position and Salary Control Resolution for Fiscal Year 2025, Affecting the Salaries of Classifications in the Hourly Employees’ Bargaining Unit, Effective September 7, 2024.

DISCUSSION:

On July 11, 2024, negotiators reached a tentative agreement for a new 24-month labor agreement (“MOU”) with the Hourly Employees bargaining unit. The agreement was subsequently ratified by unit members. The Hourly Employees bargaining unit represents temporary, seasonal and limited term “L/T” employees as well as “Regular” Hourly Employees.

Wages
Under the new agreement, employees in hourly classifications that did not receive an increase during FY2024 will receive a wage increase of 4.5% per hour after adoption by the City Council. During the second year of the MOU, all hourly “L/T” Classifications will receive a 4.5% across-the-board salary increase.

Agenda Item No. 4
File Code No. 440.02
Council Agenda Report
Resolution Approving the 2024-2026 Hourly Employees Bargaining Unit Memorandum of Understanding, and Amendment of Resolution No. 24-071, the Position and Salary Control Resolution for Fiscal Year 2025 [Resolution]
September 10, 2024

Page 2 ends

Santa Barbara City CouncilSeptember 10, 2024

Santa Barbara City Council
September 10, 2024