BUDGET/FINANCIAL INFORMATION:
With the approval of the recommended amendments, the total on-call engineering services contract expenditure authority for each of these firms will be increased as follows:
Firm Name Contract
Number
Current
Contract
Authority
Proposed
Increase
Proposed Total
Contract
Authority
Davis CME 26,806 $700,000 $100,000 $800,000
Geosyntec
Consultants Inc.
26,809 $350,000 $100,000 $450,000
Mimiaga
Engineering
Group Inc.
26,813 $700,000 $100,000 $800,000
Stantec
Consulting
Services Inc.
26,818 $700,000 $100,000 $800,000
No funds will be encumbered until a task order for an agreed scope of work for an individual project is created. These on-call engineering services will be funded through Council-approved appropriations in the Water and Wastewater Funds.
A copy of the amendments may be requested from the Public Works Department for public review by contacting [email protected].
ENVIRONMENTAL REVIEW:
All projects utilizing the On-Call Engineering Services Contracts for Pre-Qualified Professional Engineering Firms for Water Resources Facilities are potentially subject to California Environmental Quality Act (CEQA) depending on the scope of work for each task. CEQA compliance will be determined as part of each individual project during the design process.
PREPARED BY: Brian D’Amour, P.E., City Engineer/AS/rl
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: Kelly McAdoo, City Administrator
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: December 3, 2024
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Desalination Plant Offshore Pump Platform Stabilization Project Construction Management [Agreement]
RECOMMENDATION:
That Council authorize the Public Works Director to execute a City Professional Services contract with Filippin Engineering Inc., in the amount of $699,610 for construction management services for the Desalination Plant Offshore Pump Platform Stabilization Project and authorize $69,960 for potential extra services, for a total expenditure authority of $769,570.
DISCUSSION:
Background
In May 2017, the City of Santa Barbara’s (City) Charles E. Meyer Desalination Plant went back into operation after nearly 16 years in standby. As part of the Plant Reactivation Project (Reactivation Project), new pumps were placed in the existing offshore ocean intake platforms (Platforms A and B) to provide the seawater for the treatment plant. The platforms were constructed in 1991 when the Desalination (Desal) Plant was originally built. Not long after operations began, a series of major storms resulted in 18 inches of scour under Platform B, leaving it supported only by piers. The piers used to secure the structure from horizontal movement were not designed to support the structure elevated off the ocean floor. In reviewing the original 1991 design drawings, it was noted that both structures were to have been installed with rock armoring. For reasons unknown, that rock armoring was not installed, which is critical for preventing strong currents from scouring the ocean sand from under the structure. After discussions with California Coastal Commission staff, the City was given permission to install a temporary solution to avoid the potential catastrophic failure of Platform B. This solution included the placement of temporary shoring around the perimeter to support the placement of pea gravel fill under the structure. While this solution provides some benefit, it is not a longterm permanent solution. Following another large storm event in 2023, it was discovered that Platform A is now experiencing scour and requires repair.
Agenda Item No. 11
File Code No. 540.1
Council Agenda Report
Desalination Plant Offshore Pump Platform Stabilization Project Construction Management [Agreement]
December 3, 2024
The Desalination Plant Offshore Pump Platform Stabilization Project (Project) will stabilize both platforms by filling the scour voids under the concrete structure and installing protective rock armor around the perimeter of each platform. In February 2020, City staff obtained a Federal Emergency Management Agency (FEMA) grant under the Hazard Mitigation Grant Program (HMGP) for the design and construction of a permanent repair.
FEMA divided the grant process into two phases: Phase 1 consisting of 65% design and environmental clearance, and Phase 2 consisting of 100% design and construction.
On June 16, 2020, Council approved Professional Services Agreement No. 26,720 with Moffat & Nichol (M&N) for the Project’s development through 65% design (Phase 1). In August 2021, the City submitted the 65% design and environmental compliance documentation, e.g. California Environmental Quality Act (CEQA) documents to FEMA for review and approval, as required. In April 2023, the City received FEMA approval of the 65% design and CEQA documents and was authorized to proceed with Phase 2 to complete the design and implement the construction work. On October 17, 2023, Council authorized an amendment to M&N’s agreement to complete final design.
Mimiaga Engineering Group (MEG) has assisted City staff with the FEMA grant administration services and design oversight, through a separate, on-call engineering contract.
Current Status
Final design is scheduled to be completed by the end of 2024. The Project is anticipated to be competitively bid in early 2025 with construction anticipated to be completed by the end of calendar year 2025.
Construction Management Services
Staff recommend that Council authorize the Public Works Director to execute a contract with Filippin Engineering Inc., (FE) in the amount of $699,610 for construction management services for the Project and authorize $69,960 for potential extra services, for a total expenditure authority of $769,570.
In May 2024, the City issued a Request for Proposals for constructability review and construction management services to oversee the offshore construction work. The City received proposals from two firms. From the written proposals and interviews, FE was identified as the most qualified and responsive consultant team to meet the City's needs.
The consultant's team includes specialists in the offshore construction industry who are well-suited to assist the City with managing the offshore repair work.
In August 2024, the Public Works Director authorized an agreement with FE to perform a constructability review of the Project plans, specifications, and the design engineer’s cost estimate. The contract recommended in this report includes FE assisting with construction contract bid and award, and the full scope of work for FE to provide construction management, inspection, and environmental monitoring services during construction of the Project.
Council Agenda Report
Desalination Plant Offshore Pump Platform Stabilization Project Construction Management [Agreement]
December 3, 2024
BUDGET/FINANCIAL INFORMATION:
The following summarizes all estimated Project design, environmental compliance, construction, and other Project costs.
ESTIMATED TOTAL PROJECT COST
*Cents have been rounded to the nearest dollar in this table.
TOTAL
Design Services (M&N) $449,240
Environmental Permitting (by Dudek) $167,365
Design Management (by MEG) $133,000
Project Management (by City Staff) $100,000
Environmental Permitting (by City Staff) $45,000
Constructability Review (by FE) $99,675
Design Subtotal $994,280
Estimated Construction Contract with Change Order Allowance $3,900,000 Construction Management (by FE) $769,570
FEMA Grant Management (by MEG) $25,000
Construction Management (by City Staff) $80,000
Environmental Permitting Support (by City Staff) $15,000 Construction Subtotal $4,789,570
Project Total (Design and Construction) $5,783,850
Approved FEMA Funding $4,059,921
Total City Share $1,723,929
FEMA originally agreed to contribute a total of $1,039,744 toward the Project. The City submitted a request to FEMA to increase their share of costs because the total Project costs are higher than originally estimated, primarily due to the additional scope of stabilizing the second platform and general inflation in the construction industry since the initial grant application. On October 18, 2024, the City received formal approval for the amount requested, bringing the total FEMA contribution to $4,059,921. All costs above the grant funding would be proportionately shared between the City’s Water Capital Fund and the Montecito Water District, pursuant to the terms of the Water Supply Agreement.
There are sufficient expenditure appropriations in the Water Capital Fund in Fiscal Year 2025 to cover the cost of the recommended contract. Staff will return to Council to appropriate the additional FEMA funding.
A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].
Council Agenda Report
Desalination Plant Offshore Pump Platform Stabilization Project Construction Management [Agreement]
December 3, 2024
ENVIRONMENTAL REVIEW:
On April 18, 2021, City staff completed an Environmental Impact Report (EIR) addendum for the Project to analyze the on and offshore protection of the pump platforms in conjunction with the 1991 Temporary Emergency Desalination Project EIR (SB-106-90) and 1994 Long Term Water Supply Program EIR (SB-97-91). On August 28, 2024, City staff completed a subsequent EIR addendum to analyzing additional onshore staging areas required to modify the California Coastal Commissions Coastal Development Permit. These EIR addendums concluded that the minor changes would not result in any new significant impacts that were previously identified with appropriate mitigation measures of the 1991 and 1994 EIRs. Therefore, the City has determined that the addenda are the appropriate environmental review documents pursuant to State CEQA Guidelines sections 15162 and 15164. A Project specific Mitigation Monitoring and Reporting Plan (MMRP) will be prepared as required prior to start of construction.
WATER COMMISSION RECOMMENDATION:
This item was presented to the Water Commission at its meeting on October 17, 2024, and the Commission voted 3:0:2 to recommend the item to Council.
PREPARED BY: Brian D’Amour, P.E., City Engineer/AS/BR/rl SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: Kelly McAdoo, City Administrator
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: December 3, 2024
TO: Mayor and Councilmembers
FROM: Finance Department
SUBJECT: Professional Services Agreement for Electronic Bill Presentment and Payment Services for Utility Bills [Agreement]
RECOMMENDATION:
That Council approve and authorize the Finance Director to execute a three-year Professional Services Agreement with Invoice Cloud, Inc., for electronic bill presentment and payment services for the City’s Advanced Utility Systems CIS Infinity software and Infinity.Link online payment application.
DISCUSSION:
The Finance Department bills and collects revenue for City water, wastewater, and solid waste services. In 2016, Council approved a contract with Invoice Cloud, Inc., which provides online bill presentment and payment services. This contract was approved for three years, with two optional two-year extensions.
In April 2019, Council approved the first amendment to the contract, extending the term for the agreement by the first optional two years, through January 25, 2021. In the first amendment, the City also amended the fee schedule, under which the City pays Invoice Cloud, Inc. directly for virtual check (ACH) and credit card fees, while paying the interchange to Chase Paymentech, the third party credit card processor used by Invoice Cloud. In April 2021, Council approved the second two-year amendment to extend the agreement until April 2023. Since then, staff has been working closely with Invoice Cloud, Inc. to negotiate the terms of the next agreement. Delays were caused from staff turnover, and staff and Invoice Cloud, Inc. have reached agreement to move forward.
Invoice Cloud has been a reliable partner in helping the City to manage the Utility Billing program efficiently and stay up to date with the latest technology in utility bill payments.
Therefore, staff recommends extending the partnership with Invoice Cloud through a new three-year agreement, with the option for two additional one-year automatic extensions, and continuing to utilize Chase Paymentech for credit card processing.
Agenda Item No. 12
File Code No. 210.01
Council Agenda Report
Professional Services Agreement for Electronic Bill Presentment and Payment Services for Utility Bills [Agreement]
December 3, 2024
This new agreement will ensure continuity and increase efficiencies in the City’s utility bill payment system. The agreement’s updated pricing includes the implementation of a credit card convenience fee, approved by Council in June 2024, that will generate substantial cost savings for the City.
In Fiscal Year 2024, the City paid a total of around $355,000 in payment processing and technology fees for utility bills. With the implementation of the 2.95% credit card convenience fee on utility bills, starting in Fiscal Year 2025, the City ‘s annual estimated savings are around $240,000 per year. Utility bill payers will have an option to pay with e-check/ACH with no fee. The City will keep paying for the fees associated with echeck/ACH payments, IVR, rejects, and other fees, estimated at up to $115,000 per year.
BUDGET/FINANCIAL INFORMATION:
No additional appropriation is required in order to execute this agreement.
PREPARED BY: Salvatore Parrilla, Treasury Analyst
SUBMITTED BY: Lyndsay Maas, Assistant Finance Director
APPROVED BY: Kelly McAdoo, City Administrator
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: December 3, 2024
TO: Mayor and Councilmembers
FROM: Police Department
Information Technology Department
SUBJECT: Best Interest Waiver for City Core Radio System Component Replacement, Installation, and Support Services
RECOMMENDATION:
That Council approve a Best Interest Waiver under Santa Barbara Municipal Code §4.52.070, subdivision L, authorizing the General Services Manager to issue a Purchase Order in the amount of $1,041,193 for the purchase of a new K2 Conventional Core, (8) dispatch consoles, installation services, and warranty and support services from Motorola Solutions, Inc.
DISCUSSION:
The City of Santa Barbara received $963,000 in federal funding for the replacement of key components of the City’s citywide radio system infrastructure. The funding is providing the City the ability to develop and acquire effective equipment, technologies, and interoperable communications that will assist in responding to emergency and community needs. This system provides services to the Combined Communication Center. This funding will allow the city to begin the replacement of the analog communications system, which was installed in the early 2000s. This new equipment replaces aging infrastructure for the 9-1-1 Combined Communications Center and will eventually provide the ability to use digital encryption for public safety communication.
The digital encryption will ensure the protection of personal identifiable information that may be transmitted during public safety communications.
The annual vendor support and services for the core and radio consoles will be $789,232 over the seven-year life of the equipment and is billed annually. These support services ensure that the equipment is kept up to date and provides repairs in the event of failure.
The Departments are requesting the purchase of Motorola equipment as it will allow the city the option to join the CalOES California Radio Interoperable System (CRIS) in the Agenda Item No. 13
File Code No. 520.04
Council Agenda Report
Best Interest Waiver for City Core Radio System Component Replacement, Installation, and Support Services
December 3, 2024
future. This system was established in 2019 and when fully developed, will provide radio coverage to over 90% of the State’s population and over 60% of the State’s geographic footprint. The vision is that this system will ensure all of California’s Public Safety Agencies have access to reliable interoperable communications capabilities.
BUDGET/FINANCIAL INFORMATION:
The majority of funding for this essential work is from the FY24 COPS Technology and Equipment Program Invitational Solicitation in the amount of $963,000. The balance of $78,193 of the initial purchase will be paid for from the Radio System Upgrade capital improvement fund.
Funding for the annual vendor support and services will be included in the annual Information Technology budget.
PREPARED BY: Lori Pedersen, Administrative Manager
SUBMITTED BY: Kelly Gordon, Chief of Police
Justin Cure, Information Technology Director
APPROVED BY: Kelly McAdoo, City Administrator
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: December 3, 2024
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
RECOMMENDATION: That Council:
A. Receive a presentation on behalf of the Housing Crisis Ad Hoc Committee regarding its key findings and recommendations; and
B. Provide direction to staff on the top three priorities of each Councilmember from the ten priority recommendations from the Housing Crisis Ad Hoc Committee that will assist staff with further research and exploration along with identifying resource needs for future Council consideration.
EXECUTIVE SUMMARY:
The Housing Crisis Ad Hoc Committee was formed on April 19, 2022. Mayor Rowse appointed Councilmember Oscar Gutierrez as Chair and Councilmembers Alejandra Gutierrez and Kristen Sneddon as members. The motion approved was to create an ad hoc committee to address the housing crisis while folding in items of rent cap and a rent registry for further discussion.
The Committee began meeting in 2023 and formalized their objectives as follows:
(a) Rely on local expertise and stakeholders to offer input, suggestions and priorities for Council to consider in addressing the local affordable housing crisis; (b) Hold a community forum to solicit community input; and (c) Present to Council the full suite of suggestions with emphasis on the top recommendations from the Ad Hoc Committee with the goal of setting near and long-term priorities.
The Committee interviewed over twenty-eight (28) key stakeholder groups and member associations over this period to help form their initial findings and recommendations. A Agenda Item No. 14
File Code No. 170.01
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
community workshop was also held on October 14, 2024 that included close to 100 participants along with 64 attendees that participated virtually through Zoom. The purpose of the workshop was to receive additional feedback on the Committee’s findings as well as how recommendations should be prioritized by City Council for further research and implementation.
DISCUSSION:
The State of California is facing an affordable housing crisis due to a combination of factors, and the City of Santa Barbara is no exception. This includes a critical affordable housing shortage, high cost of living including rising home prices and rental rates that are pricing out residents, and a persistent number of people experiencing homelessness.
The Housing Crisis Ad Hoc Committee was formed to explore these issues and identify policy and program recommendations for consideration by City Council. Several of the recommendations have already been incorporated into the City’s 2023 – 2031 Housing Element1 and are programmed with timelines, but others will require additional staff time and resources for extended research and to identify important considerations for implementation. The Committee is placing specific emphasis on the recommendations that are not otherwise incorporated into the City’s 2023 – 2031 Housing Element.
Housing Crisis Ad Hoc Committee Findings
The Committee synthesized the following findings from key stakeholder interviews that helped shape their recommendations. The challenges identified by tenants include, but are not limited to, the following:
High barriers to rental housing (e.g. three times the income needed, above 650 credit score, security deposits and not accepting co-signers) Rental prices are far outpacing wages
Lack of compliance from property owners (e.g. no lease agreements, timing for eviction notices)
Fear of retaliation and eviction
Dwindling housing supply
The challenges identified by property owners include, but are not limited to, the following:
Expenses are increasing (e.g. roof repairs, water and gas mains, electrical issues, rising construction costs, and insurance)
City ordinances and regulations are obscure, hard-to-find, and not available in Spanish
Fear of criminal prosecution
1 The City of Santa Barbara’s 2023 – 2031 Housing Element is available for reference at:
https://santabarbaraca.gov/HousingElement.
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
Fear that if they don’t keep up with rental increases, they won’t be able to make up the needed income down the line
Delays in getting through the permitting process and associated costs as a result Housing Crisis Ad Hoc Committee Recommendations
The Committee organized their recommendations into five different categories including:
(1) education and access to information; (2) increasing affordable housing supply; (3) incentive programs; (4) support for innovation; and (5) regulation and City programs.
During the October 14, 2024 community workshop, the Committee presented their findings and recommendations and solicited additional input from the public. Close to 100 people participated in person and weighed in on what was missing from the Committee’s findings as well as how the recommendations should be prioritized. The feedback received is included as an Attachment to this Council Agenda Report.
The community workshop also had a virtual participation option through Zoom which included a total of 64 attendees. Given the significant number of participants, staff solicited feedback on prioritization through a poll that included the five broader categories.
There were 34 responses to the poll and the top three priorities emerged as: (1) increasing affordable housing supply; (2) incentive programs; and (3) support for innovation including leveraging public-private partnerships. This input was weighted in the priority ordering included below.
The following recommendations are being presented in priority order based on the community feedback and the specific emphasis from the Housing Crisis Ad Hoc Committee on the recommendations that are not already included in the City’s 2023 – 2031 Housing Element.
Priority Recommendations
(1) Dedicate a permanent funding source for the Local Housing Trust Fund. The Local Housing Trust Fund was established in January 2024. This is also included as Goal 8 in the City’s Housing Element.2 All inclusionary housing in-lieu fees were identified as the dedicated and continuous source for operations of the Fund for a minimum of the required first five years of the Fund’s existence. However, this amount is specific to operating costs and is insufficient to meet the affordable housing needs of the City of Santa Barbara.
(2) Implement a rent stabilization ordinance. This is also known as rent control and limits how much rent a landlord can increase and how often it can be increased. The California Tenant Protection Act of 2019 (TPA) already limits rent increases for most residential tenants. The maximum annual rent increase is 5% plus the percentage change 2 2023 – 2031 City of Santa Barbara Housing Element Program HE-16: Create Affordable Housing Funds, page 138.
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
in the cost of living for the region, or 10 percent, whichever is lower. The TPA does not apply to certain specific types of housing, such as housing built in the last 15 years.
Proposition 33 would have repealed the Costa-Hawkins Rental Housing Act that set the limits on how cities and counties could apply rent control, including the exemption of single-family homes, condos and any other housing built on or after February 1, 1995.
Given that it did not pass statewide during this year’s election and with approximately 59% of City of Santa Barbara voters not in support, further staff research could potentially explore the impact that a new ordinance could have due to the current limits on local control as well as other rent stabilization strategies that could be implemented. (3) Create a rental registry. A rental registry is a database that contains information about rental properties and their owners. Landlords or housing providers would provide the information to comply with local ordinances. Information often includes property details, current rent and allowable rent increases, landlord contact details and management company information. Rental registries can assist cities in tracking rent increases and tenancy changes, monitoring compliance with local ordinances, communicating rental unit data to landlords and tenants, and planning for infrastructure like schools and transportation. There are many different mechanisms for creating rental registry and the more comprehensive registries can be extremely costly in terms of implementation and ongoing staff resources needed to support it. Options for implementing a rental registry should be weighed based on other competing priorities for the funding and staff resources to implement such a registry. (4) Sustain access to legal counsel program. City Council established a new access to counsel pilot program in July 2024 by providing up to $250,000 in funding to the Legal Aid Foundation of Santa Barbara County to operate the program. The goal of the program is to provide legal services to tenant households at risk of eviction and support would be limited to very low-income tenant households who live in the City of Santa Barbara. (5) Create incentive programs for housing providers. This includes tax incentives for below market rental units, programs/credits for improvements and repairs, and allowances for capital improvements. A study conducted in 2021 by BAE Urban Economics indicated that multi-unit hard costs are upwards of $388 per square foot of built space, not including parking hard costs of $40,000 per podium space. Soft costs such as engineering, architecture, financing, and California Environmental Quality Act (CEQA) costs, as well as City cost-recovery fees for planning, permitting, and entitlements, are equal to 19 percent of hard costs. In recent years, several factors have caused the increase in cost as well as the availability of construction materials and equipment.
The City’s Housing Element3 does include strategies specific to providing rehabilitation funds for affordable multi-unit housing and technical assistance and funding home 3 2023 – 2031 City of Santa Barbara Housing Element Programs HE-24: Fund Home Rehabilitation and Provide Technical Assistance and HE-25: Fund Home Improvements and Repairs, page 151.
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
improvements and repairs for income-qualified households, respectively. A pilot program to fund income-qualified improvements and repairs was initiated in partnership with Habitat for Humanity with an initial investment of $50,000 to support approximately 10 homes annually.
(6) Form “tiny home” ownership program that would be developed and stewarded on City property. The City intends to evaluate City-owned sites for future housing development opportunities as part of a City Land Registry.4 The City will evaluate Cityowned land (not including lands dedicated to parks and recreation purposes) including parking lots, to determine future needs and if the publicly-owned site could be donated, leased, or sold at a reduced price to develop affordable housing. A public-private partnership could also be explored to facilitate purchasing or financing of smaller homes that are more affordable for first-time home buyers.
(7) Facilitate more housing opportunities for single parents that may include childcare and youth services. The 2015 – 2019 American Community Survey (ACS) estimated that 31 percent of all households in the City are female headed households. Of those, 13 percent are with children and 87 percent are without. Of all families under the poverty level, 48 percent are female-headed. The City’s Housing Element highlighted that single parent households, in particular, female-headed households, generally have lowerincomes and experience higher living expenses. This makes it difficult to find safe, decent, and affordable housing. These households can also face challenges in attaining affordable childcare, health care and other supportive services. (8) Create incentives for property owners to build accessory dwelling units (ADUs).
Per the City’s Housing Element,5 the City is working to implement procedural changes and will consider further ordinance amendments to assist ADU applicants and increase ADU applications. This includes use of pre-approved plans consistent with design criteria.
In May 2024, the City accepted submissions for designer-owned preapproved plans for detached ADUs. These plans will be considered for pre-approval by the City, with the goals of speeding up the review and approval process, guiding homeowners who may not know where to start, and ensuring that those homeowners work with qualified experienced professionals. Incentives could be facilitated through a public-private partnership in support of this preapproved ADU program to assist homeowners with permitting and construction costs.
(9) Expand down-payment assistance programs and education for first-time homebuyers. The County of Santa Barbara has several programs to help with down payments for homeownership including Assist-to-Own, the Workforce Homebuyer Program, and Housing Trust Fund Down Payment Assistant Loan. Organizations and initiatives such as the Coastal Housing Partnership and the Housing Authority of the City of Santa Barbara Housing Day facilitate outreach for these programs but greater 4 2023 – 2031 City of Santa Barbara Housing Element Program HE-14: City Land Registry, page 135. 5 2023 – 2031 City of Santa Barbara Housing Element Program HE-6: Facilitate Production of Accessory Dwelling Units (ADUs), page 127.
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
expansion would make it available to more first-time homebuyers in a competitive housing market.
(10) Create more easily accessible City resources to help build greater understanding of tenant rights and housing provider rights and responsibilities.
The City’s Rental Housing Mediation Program webpage includes references to Municipal Code Title 25 Housing Regulations and offers opportunities to engage with City staff to help answer questions regarding landlord and tenant rights. However, this information is currently not offered in Spanish or in downloadable forms or checklists for easier reference and broader understanding. The City Attorney’s Office webpage provides, among others, a link to Santa Barbara Municipal Code Chapter 26.50 “Just Cause for Residential Eviction” including Spanish translation of the Ordinance and attached FAQ.
Recommendations Incorporated into the City’s 2023 – 2031 Housing Element (1) Prioritize more housing for low- and moderate-income households. Goal 2 in the 2023 – 2031 City’s Housing Element commits to prioritize housing that is affordable to the workforce and vulnerable communities. Low-income is defined as 50 to 80 percent of Area Median Income (AMI) and moderate-income is defined as 80 to 120 percent of AMI.
For 2024, AMI for a four-person household is $119,100.
(2) Work to ensure that UCSB and SBCC are providing sufficient housing for their student populations. There were 13,427 enrolled students at Santa Barbara City College in Fall 2023 and another 26,420 students (including undergraduate and graduate) enrolled at the University of California, Santa Barbara. SBCC does not own or operate any on-campus student housing. For UCSB, approximately 38% of students live in campus housing and the other 62% of students choose to live off-campus. Of those living in the local community, approximately 5% (or 1,321 students), live in the City of Santa Barbara. Coordinating and discussing the issue with other local jurisdictions, UCSB and SBCC is included in the City’s Housing Element.6
(3) Sustain a short-term rental enforcement program. The City launched a one-year pilot program in August 2023 with the objective of gathering accurate data and increasing enforcement of unpermitted, illegal short-term rentals. The pilot program is being led by the City Attorney’s Office and was recently converted into a permanent program. Goal 4 of the City’s Housing Element7 calls for a future short-term rental permit program.
Additional financial resources, which could be raised by permit program fees and penalties, would be needed to sustain creation and implementation of such a program. (4) Expand rental housing mediation program / consider mandatory mediation for certain rent increases. The City’s Rental Housing Mediation Program (RHMP) was 6 2023 – 2031 City of Santa Barbara Housing Element Program HE-30: Affordable Student, Staff, and Faculty Housing, page 155.
7 2023 – 2031 City of Santa Barbara Housing Element Program HE-19: Short-Term Rental Framework and Ordinance, page 147.
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
established in 1976 and currently comprises three full-time staff and a Board of 15 trained community volunteers appointed by Cit Council and dedicated to resolving rental housing disputes by offering mediation services and information on Landlord-Tenant rights and responsibilities. This program is included as a strategy under Goal 48 in the City’s Housing Element but given the reduction in State funding utilized to support this program an expansion would require additional budgeted resources by City Council. (5) Implement voucher / rent relief program. This may include incentives for housing seniors and safety net rent bridging programs for tenants facing short-term financial hardships. The City partners with several local organizations to administer a Tenant Based Rental Assistance (TBRA) grant program that can be used for security deposit payments and/or monthly rental housing assistance for up to 24 months but it is specifically for low-income households including people who formerly experienced homelessness as well as those at risk of becoming homeless. Goal 3 of the City’s Housing Element is to provide financial resources and supportive services for members of the community who need housing assistance.
(6) Leverage public-private partnerships. This encompasses social impact investing, community-owned land trusts, employee-sponsored housing and co-op/shared housing.
Goal 7 of the City’s Housing Element is to coordinate with regional partners including surrounding community and regional agency partners such as the Santa Barbara South Coast Chamber of Commerce to address regional housing issues, homelessness, and the jobs/housing balance. Establishing and sustaining these partnerships to advance strategic or targeted initiatives would require additional staffing capacity. (7) Streamline the permitting and building processes with dedicated timeframes and assigned staff to shepherd projects through. As part of Goal 1 in the City’s Housing Element,9 the commitment is to reduce and, where feasible and practical, remove unnecessary City-imposed constraints that impede housing development. The Community Development Department has created an Ombudsman position for commercial and multi-family housing applications to assist them through the design review and permitting processes.
(8) Prioritize and fast track nonprofit housing development projects in the permitting and building processes. The Community Development Department’s Planning Division implemented this recommendation earlier this year. All 100% affordable housing projects are moved to the top of the queue for plan check. (9) Expand and diversify deed-restricted housing loan programs. In Goal 2 of the City’s Housing Element, it specifically refers to the use of deed restrictions and others measures to prioritize housing that is affordable to the workforce over other types of development.
8 2023 – 2031 City of Santa Barbara Housing Element Program HE-17: Support Rental Housing Mediation Program, page 140.
9 2023 – 2031 City of Santa Barbara Housing Element Program HE-5: Process Improvements, page 127.
Council Agenda Report
Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee
December 3, 2024
(10) Ensure that information is available in multiple languages and multiple modalities. This is included as Goal 6 in the City’s Housing Element to educate and support the community about housing issues, affordable housing opportunities, and available resources and programs.
Next Steps
Staff seeks direction from Council on the top three priorities from the ten priority policy recommendations from the Housing Crisis Ad Hoc Committee. This will help staff identify the resources needed to conduct additional research and community outreach on these policy ideas in the context of existing workloads. Staff also intends to incorporate the direction given at this meeting as part of the upcoming strategic planning efforts and will return to Council for a broader prioritization and resource allocation discussion in that context as well.
Any of the recommendations that are prioritized by City Council and not included in the 2023 – 2031 Housing Element will require additional research and identification of important considerations for implementation. Cost proposals will also need to be developed in support of any additional staffing capacity and financial resources that would be needed to successfully implement new policies, programs or initiatives. Depending on the direction from Council, some of these proposals may be timelier and more appropriate for the next two-year budgeting process while others may be incorporated as Council priorities in the upcoming citywide strategic planning process.
BUDGET/FINANCIAL INFORMATION:
The implementation of the City of Santa Barbara’s 2023 – 2031 Housing Element has significant commitments and costs including additional staffing capacity through the Community Development Department, including the Planning as well as Housing and Human Services Divisions, along with a small amount to assist the City Attorney’s Office that was approved in the adopted Fiscal Year 2025 budget. Any additional recommendations that are prioritized by City Council for further research and implementation will incur costs above and beyond the adopted budget. Initial costs for dedicated staff time will be incurred, to the extent feasible with existing staff resources, by the appropriate City departments until more concrete proposals with associated costs are presented to City Council for consideration and implementation based on the priorities discussed at this meeting.
ATTACHMENT: Public Input from October 14, 2024 Housing Crisis Ad Hoc Committee Community Workshop
PREPARED AND
SUBMITTED BY: Barbara Andersen, Sr. Assistant to the City Administrator APPROVED BY: Kelly R. McAdoo, City Administrator
ATTACHMENT
Housing Crisis Ad Hoc Committee Community Workshop
Public Input
October 14, 2024
What recommendations should be prioritized for further research and implementation? Committee Recommendations Stakeholder Groups Total
Homeowners
Landlords /
Housing
Providers
Tenants
CommunityBased
Organizations
Nonprofit
Housing
Developers
Residents /
Advocates
Education and Access to Information 1 3 1 5
Create more easily accessible City
resources to help build greater
understanding of Tenants’ Rights and
Housing Provider Rights and
Responsibilities
1 1 1 1 4
Ensure that information is available in
multiple languages and multiple
modalities
1 1
Increasing Affordable Housing
Supply
4 2 6
Prioritize more workforce housing for
the “missing middle” (middle to upper
middle-income households)
4 4 6 1 1 16
Work to ensure that UCSB and SBCC
are providing sufficient housing for
their student populations
6 1 1 2 10
Dedicate permanent funding source
for the Local Housing Trust Fund
3 3 5 11
Page
2 of 10
Increasing Affordable Housing
Supply
923 14
Streamline the permitting and building
processes with dedicated timeframes
and assigned staff to shepherd
projects through
1211139
Prioritize and fast track nonprofit
housing development projects in the
permitting and building processes
112116
Incentive Programs819
Create incentive programs for housing
providers - Tax incentives for below market
rental units
- Programs/credits for
improvements and repairs
- Allowances for capital
improvements
7522 16
Implement voucher / rent relief
program - Incentives for housing seniors - Safety net rent bridging programs (for tenants facing
short-term financial hardships)
3329
Incentive Programs1113
Expand and diversify deed-restricted
housing loan programs
1124
Create incentives for property owners
to build accessory dwelling units
(ADUs)
112
Expand down-payment assistance
programs and education for first-time
homebuyers
1 1
Support for Innovation 1 1
Leverage public-private partnerships
- Social impact investing
- Community-owned land trusts
- Employee-sponsored housing
- Co-op / shared housing
1 1 2 11 3 3 21
Form “tiny home” ownership program
- Developed and stewarded on
City property
3 3 2 1 1 10
Facilitate more housing opportunities
for single parents
- Housing that includes
childcare and youth services
1 1 2
Regulation & City Programs 7 4 11
Implement rent stabilization ordinance 6 5 2 13
Create a rental registry 1 6 2 9
Sustain short-term rental enforcement
program
1 1 1 3
Expand rental housing mediation
program / consider mandatory
mediation for certain rent increases
1 1 1 3
Sustain access to legal counsel
program
2 2
Additional note: A total of 34 participants that participated virtually through Zoom voted in a poll to rank the highest priority (1) to the lowest priority (5) of the five recommendation categories. The top three priorities included: increasing affordable housing supply (30 votes), incentive programs (22 votes), and support for innovation (15 votes).
What is missing in the Committee’s findings?
Stakeholder Group Feedback
Landlords /
Housing Providers
Lack of available land for construction
- Government surplus for affordable (low)
- Public partnerships
Pathway rent to own
- Downpayment assistance
- Lease to buy (first right of refusal)
ADUs pathways to own separately?
ADUs financing program with deed restriction
- Split underutilized homes
Waivers of development costs for affordable housing
Education and access to information is key
- May not need new regulations given existing protections - English and Spanish
Need: supply rent control is not solution creates equity issue for those who have and don’t have Focus needs to be “affordability”
- Above market being produced
- Update definition? 30%? Should be higher
Employee-provided housing on a short-term basis if tied to employment Rental subsidies paid by the City could be funded by a general tax and spread the cost to all, not just property owners
ADUs are a helpful idea, but they must be limited in numbers and elevation to prevent destroying neighborhoods
Incentivize employers to build / subsidize housing for their employees Don’t make luxury housing for out-of-towners who want to move here a priority; don’t overbuild luxury housing
Focus on building low/mid income housing paid for by City and subsidize rent by City A place for landlords to get help with trouble tenants / expand mediation to be fair and equal Coastal Commission to relax regulations to build more housing on UCSB and SBCC and State add pressure
Nothing is included in the recommendations regarding “mom and pop” landlords; this group is always mentioned as an asset to the community as the best housing providers and offer the lowest rents - Need to consider how to keep out of town corps out and promote local ownership Rent control should not be embraced as it would create less rental availability Help UCSB create dorms for some of its students
- Incentivize or require students to live on campus
Best solution is City subsidizing rent for workers
Rent regulation will result in owners selling out and fewer units and all rental housing owned by larger landlords
Excessive ADUs will destroy the neighborhoods if not controlled Tourism is a strong revenue stream; short-term rentals provide retail, dining, activity and bed tax revenue and jobs
- We need a rule book so that STRs can be part of the solution. We want to be good members of the community. Let us know how.
Missing is an understanding that regulation of rent will reduce incentives for private investment in housing; will result in less new housing and no incentive to maintain / upgrade properties Educational institutions should be responsible – keep SBCC and UCSB students on campus and they should provide for their housing
Workforce is what we need – employers should help to provide for housing their workers Don’t encourage rental control
Tenants Lack of City enforcement
Power imbalances
Mixed use development at least 20% requirements at low-income housing Tax landlords that rent by-the-bed
- Overcrowding causes problems with services (general trash, sewer) but not those renters’ faults, subletting rooms renting bathrooms
Give more power to the City to enforce City ordinances and tenant protections Expand ADU program by area, max densities, inclusionary % to 20% and expand CBO rules to the whole program area
Impacted housing: multi-families moved into too little space illegally
- There are 20 people living in a three-bedroom house on my property. Multiple families and one bathroom. Trash and bathroom/sewage issues for the shared property are overflowing and backed up - Noise violations
- Illegal subletting
- Falls on tenants to live with livability issues and report Education of landlords on existing regulations
Maintenance not up to par
Having more bi-lingual staff, something in between regulatory and code enforcement, community empowerment office
Moratorium on hotels
Increase affordability regulations for AUD
Maybe increase lease period for more stability, especially for families Emphasis on rental stabilization and a rent registry, the reason this Committee was created Permanent source of funding for affordable housing financing and funding Ordinances have to be drafted and enacted with all stakeholders to address and codify the regional housing needs allocation numbers and to garner the local legislation to come to compliance with new or on-going housing development
Affordable housing is based on what formula? Affordable housing is broadly defined and there is a big need to address
TOT percentage increase to 15% for permanent housing funding strictly for low-income housing Homeowner / tenant collaboration (singles, seniors)
How are other cities of comparable size / cost of living / demographics handling housing challenges / shortages?
- Is SB taking advantage of existing problem solving and solutions? Small business owners! How are small businesses supposed to keep up with increases in residential and commercial spaces
- If wages, rent and operating costs increase for businesses AND our local customer base can no longer afford the services…
- Tech: the giant elephant in the room! How do local wages compete with salaries that do not provide any local benefits? We have industries among us whose takes and wealth doesn’t benefit the City - Single income single homes!
- Barrier of entry for anyone
Community-Based
Organizations
Affordable rentals for public employees, especially essential workers, teachers, firefighters, nurses, etc. Big “no” to rental registry – how is “workforce housing” defined? Missing adaptive reuse
Incentivize density Downtown
- Supply is artificially limited
- Supply is general (not just low/medium income) will stabilize prices downstream Confusion about affordable, missing middle and workforce Protecting current families / tenants from displacement Housing for middle-class workforce
Rent control that fits with increasing incomes and gives landlords a fair return on their investment; this is necessary for long-term renters
Lack of repairs (or upgrades)
Rents go up while units are not safe or habitable
Preserving existing housing stock (it’s already cheaper than new housing) Need a better means of mediation and enforcement of tenant protection ordinances; volunteers are not best option
- One option: a paid staff that knows the laws and ties to the City Attorney’s Office Many landlords and even “YIMBYs” seem to see displacement from a particular area as a result of the market as acceptable, but people are stronger and stay healthy longer when they are able to stay with their family and community; these connections make life meaningful Market-based housing costs out local workers, increases instability as a community Lack of understanding (by tenants) about legal recourse if their landlord is not in compliance Challenging for tenants working in low-to-middle income professions in “essential” positions (healthcare, City staff, helping professions)…leading to hiring shortages More specifics on improving eviction protections – right to return with rent cap Nonprofit Housing
Developers
Redefine missing middle ($80,000 – $120,000)
Easier conversion laws for ADUs
Defining community benefit as majority is deed-restricted rental units Reducing obstacles to affordable housing development
Increasing in-lieu fees for private developers and % of units
Allowing ADUs to be for sale with deed restricted at 80 – 120% Broader look at local preference (live and work on the South Coast of Santa Barbara) Pilot program to incentives 100% deed restricted affordable housing on City owned property Rent relief / voucher programs are not sustainable
Increase landlord incentives to support voucher holders Adopt pro-housing designation that will help with funding Residents / Advocates Build more supply of all kinds of housing 15-minute neighborhoods
Find infill locations for dense housing
Build ADUs and get them deed restricted
- Find an incentive program
Focus on mix and size of housing
Support for local preference programs for leasing
Find solutions that don’t add cost
Not even ‘affordable’ for high earners
- Make connection to tech
Focus on solving the root of the problem
- For example, increasing access to well-paying jobs
Utilities cost are missing; for example, solar panels lower cost Virtual Participants You say 8,000 housing units are needed. How was that number determined? How long will 8,000 units meet the needs? Is that a permanent cap on building housing? Are we trying to meet the needs of our existing population today or meet the needs of anyone who wants to move to Santa Barbara? Where’s the water going to come from? Where are these units going to be built? How many programs listed can actually be implemented--how funded, the program titles don’t convey the details--will the committee be spelling out specifics for these? Priorities aren’t stated. It is most urgent to adopt rent stabilization and a rental registry.
How will Prop 33 impact what you are trying to do, if it passes? (Doesn't state supersede county/city regulations?) Also, where are the services needed to support the low and very low-income families who are supposedly going to be provided "affordable housing"?
On the tenant side, learning opportunities for overcoming criteria barriers to housing. Once housed, learning opportunities that will help them stay housed, skill learning like budgeting, knowing their lease,
being a good neighbor/tenant, knowing where to go for help if they are falling behind (access to information).
On the Property Owner side, finding ways that they can look beyond the rental application and barriers through incentives and securities that would otherwise screen people out. The City demystifying myths and fear and changing the culture that has created fear and lack of understanding. In general, is there something tangible that can be done to increase the number of available units to include affordable rentals? A focus on programs and services for families with children.
Financing and Funding - Land Value Capture Methods
In order to accurately get a real count of individuals experiencing homelessness we need to include counting those in institutionalized settings that are homeless in our PIT count as we do the shelters. Organized pro housing advocacy group missing from the housing ecosystem. Is SB positioned well enough to leverage state dollars. If not, what needs to change? Need to prioritize very low income as well as low and moderate. Opportunity to develop infill and commercial reuse that add housing to downtown. Prioritize housing on underutilized land.
The fact that priority should be given to subsidize housing for crucial employees - teachers, city staff, firefighters, etc. Also, assistance to recently homeless due to loss of job, loss of apartment, etc. - giving people the funds for a deposit, first few months’rent to keep them in house presents a long-term homeless issue. The chronic homeless are impossible to deal with on a local level. The City caused this problem over the past decades and now your proposals all fall on the property owners and developers to solve it. The economics for those two groups do not support or incentivize such solutions.
If you want to solve this problem, make the economics work for everyone. RENT CONTROL DOESN’T WORK AND NEVER HAS! STOP TALKING ABOUT IT AS A SOLUTION!
The idea of fair market rents and tax issues
Very good ideas. I am interested in how our housing situations affect our senior population. They have very limited resources. I would look into tiny homes and maybe helping seniors with incentives to share a home or property they already have but cannot keep up its maintenance. I wasn't sure where the source of funding was coming from for building additional housing units. Who would be determining that 8-story apartment buildings are not placed in areas of single-family homes? Would adding a TOT increase to the next ballot specifically designated for housing be something that the city council would consider?
Housing is more than just the physical structure - are you considering access to public or free transportation? childcare access and school transport? access to affordable support services - grocery/pharmacy stores/ churches/libraries
Funding
How to limit the number of houses can be owned and not live in them. A very important FINDING not included is that this is a very common problem or condition throughout the world...population pressure in desirable locations has exceeded physical and political resources which allows market forces to ration supply with price to clear demand. BOTH sides of the equation have to be addressed, namely supply and demand for housing.
Input of developers
Missing is mention of Tenant's Responsibilities, only Landlord's Responsibilities were included. Tenants also need to be educated on their responsibilities. Ordinances currently place most of the responsibility of the rental process on landlords. Missing is consideration of landlords who have kept rents well below market.
These landlords will be punished if further rent caps are instituted. The only recourse for such landlords is to sell their property and get out of the market, further tightening the available housing. The threat of rent control and increased threat of criminal prosecution and oppressive regulations is having a huge impact on the decision to sell rental properties by property owners The issue of rapidly increasing property taxes, which also impact and effect rent increases. The effect of rapidly rising cost of property owner’s insurance
Zoning changes: correct the bias in AUD zoning against smaller sized units. Note the recommendation in the General Plan for an average size of 600 sq ft. Also, explore having SBCC provide housing on its campus (just as UCSB does). I favor creation of a Rental Registry.
How Air B & Bs are taking away what would otherwise be rentals.