Santa Barbara City Council
February 11, 2025

CITY OF SANTA BARBARA

CITY COUNCIL
Randy Rowse
Mayor
Kelly McAdoo
City Administrator
Eric Friedman
Mayor Pro Tempore
Kristen W. Sneddon
Ordinance Committee Chair
Sarah J. Knecht
City Attorney
Eric Friedman
Finance Committee Chair
Oscar Gutierrez
Meagan Harmon
Mike Jordan
Wendy Santamaria
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
FEBRUARY 11, 2025, 2:00 PM
AGENDA
IN-PERSON PUBLIC COMMENT: At the beginning of each meeting of the City Council, Finance Committee, or Ordinance Committee, any member of the public may address the City Council concerning any item not on the Council's agenda. Any person wishing to make such address should first complete and deliver a "Request to Speak" form prior to the time that public comment is taken up by the City Council. Each speaker will be given a total of 3 minutes to address the Council. Pooling of time is not allowed during general public comment. The time allotted for general public comment at the beginning of the 2:00 p.m. session is 30 minutes.

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

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

HOW TO REMOTELY OBSERVE AND/OR SPEAK LIVE AT A MEETING
• Web: https://santabarbaraca-gov.zoom.us/webinar/register/WN_-tbNSuHPTmquCwDEP9hNaQ (Participation via Zoom)
• Telephone: Dial 1-669-900-6833, Enter Webinar ID: 894 0718 1596 (press *9 to raise/lower hand; press *6 to mute/unmute) • Online Streaming: Council meetings are streamed live at www.SantaBarbaraCA.gov/CAP • TV: Each regular City Council meeting is broadcast live in English and Spanish on City TV Channel 18 and rebroadcast in English on Wednesdays and Thursdays at 7:00 p.m. and Saturdays at 8:00 a.m., and in Spanish on Sundays at 3:00 p.m.

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

WRITTEN PUBLIC COMMENT: Public comments may also be submitted via email to [email protected] prior to the beginning of the Council Meeting. All public comments submitted via email will be provided to City Council and will become part of the public record.
(CONTINUED ON NEXT PAGE)
ORDER OF BUSINESS: Regular meetings of the Finance Committee and the Ordinance Committee begin at 12:00 p.m. The regular City Council meeting begins at 2:00 p.m. in the Council Chambers at City Hall.

REPORTS: Copies of the reports relating to agenda items are available for review at http://www.SantaBarbaraCA.gov/CAP.In accordance with state law requirements, this agenda generally contains only a brief general description of each item of business to be transacted or discussed at the meeting. Should you wish more detailed information regarding any particular agenda item, you are encouraged to obtain a copy of the Council Agenda Report (a "CAR") online at the City's website (http://www.SantaBarbaraCA.gov/CAP). Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are posted to the City’s website as soon as reasonably feasible.

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

LANGUAGE TRANSLATION AND INTERPRETATION: The City of Santa Barbara offers live Spanish translation and interpretation for City Council Meetings via the Wordly platform. Follow the directions below to access the service. • Go to: https://attend.wordly.ai/join/QQBV-6746
o Ensure the Session ID QQBV-6746 is displayed.
o Select “Spanish” and click on the “Attend” button.
o You can now read the captions on your device and/or listen to the translation of the City Council meeting. o Click the speaker button to hear a text-to-speech version of the translated dialogue. • If you have any questions or concerns, please contact City TV at 805-564-5311.

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

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

AMERICANS WITH DISABILITIES ACT: If you need auxiliary aids or services or staff assistance to attend or participate in this meeting, please contact the City Administrator's Office at 564-5305 or by email at [email protected]. If possible, notification at least 48 hours prior to the meeting will usually enable the City to make reasonable arrangements. For those who need accessibility accommodation in using the “raise hand” function and/or registering to participate in the Zoom session, please contact the Clerk’s office by 5:00 p.m. the day before the meeting for assistance. Additionally, a speaker may email [email protected] by 5:00 p.m. the day before a meeting, stating which item they wish to speak on. Specialized services, such as sign language interpretation or documents in Braille, may require additional lead time to arrange. 02/11/2025 Santa Barbara City Council Final Agenda Page 1 FEBRUARY 11, 2025 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET (120.03)

1. Subject: Santa Barbara Clean Energy Program Electricity Rates (120.03) Recommendation: That Finance Committee forward a recommendation to Council to amend the Santa Barbara Clean Energy Rate Setting Policy formula for the 100% Green energy product offering across all customer types and authorize the City Administrator to determine rates by application of the formula. 02/11/2025 Santa Barbara City Council Final Agenda Page 2 REGULAR CITY COUNCIL MEETING - 2:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CHANGES TO THE AGENDA

CONSENT CALENDAR

1. Subject: Minutes (000.00)
Recommendation: That Council waive reading and approve the minutes for the special meeting of January 28, 2025; and the regular meetings of December 3, 2024, December 10, 2024, January 14, 2025, and January 28, 2025.

2. Subject: Contract Amendment for Construction Management Extra Services for the Santa Barbara Police Station Project [Agreement] (520.04) Recommendation: That Council authorize the Public Works Director to execute the First Contract Amendment with TynanGroup, Inc. for an increase in its Construction Management Services to include Furniture, Fixture, and Equipment coordination services for the Santa Barbara Police Station Project, Contract No. 28,524, in the amount of $98,050, for a total expenditure authority of $2,569,620.

3. Subject: Professional Planning Services for the Vic Trace Reservoir Replacement Project [Agreement] (540.01)
Recommendation: That Council authorize the Public Works Director to execute a City Professional Services Agreement with Confluence Land Use LLC, in the amount of $200,640 for professional planning services for the Vic Trace Reservoir Replacement Project and authorize $20,064 for potential extra services, for a total expenditure authority of $220,704.

4. Subject: Contract Amendment with RRM Design Group for the Chase Palm Park Arbor Project [Agreement] (570.05)
Recommendation: That Council authorize the Parks and Recreation Director to execute a second amendment to contract #26,919 with RRM Design Group in the amount of $30,800 for design services and construction administration for the Chase Palm Park Arbor Project.
02/11/2025 Santa Barbara City Council Final Agenda Page 3

5. Subject: Proposed Sole Source Purchase Order with SkiData, Inc. for Annual Maintenance Agreement, Payment Processing, and Replacement Parts (570.03)
Recommendation: That Council find it in the City’s best interest to waive the formal bid procedure as authorized by Municipal Code Section 4.52.070 (K), and authorize the sole source purchase, in an amount not-to-exceed $360,000 to Skidata, Inc., for parking related Annual Maintenance Services, Payment Processing, and Replacement Parts for a 4-year period.

CONSENT PUBLIC HEARING

6. Subject: TEFRA (Tax Equity And Fiscal Responsibility Act) Hearing for Colorado Health Facilities Authority Revenue Bonds Issuance [Resolution] (660.01)
Recommendation: That Council:

A. Open a TEFRA public hearing, accept public comment, and close the TEFRA public hearing regarding the issuance of revenue bonds by the Colorado Health Facilities Authority (“Authority”), in an aggregate principal amount not to exceed $180,000,000, a portion of which, in a principal amount not to exceed $5,000,000, will be used for the benefit of Covenant Living at the Samarkand, located at 2550 Treasure Drive; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Approving the Issuance of Revenue Bonds to Be Issued by the Colorado Health Facilities Authority, in an Aggregate Principal Amount Not to Exceed $180,000,000, a Portion of Which, in a Principal Amount Not to Exceed $5,000,000, Will Be Used to Finance the Construction, Renovation, Remodeling, and/or Equipping of Certain Facilities Owned and/or Operated by Covenant Living Communities and Services (f/k/a Covenant Retirement Communities, Inc.) and/or One of Its Affiliates, Covenant Living West (d/b/a Covenant Living at the Samarkand), Located in the City of Santa Barbara, California, and Certain Other Matters Relating Thereto.

REPORT FROM THE FINANCE COMMITTEE

GENERAL PUBLIC COMMENT

PULLED CONSENT ITEMS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS
02/11/2025 Santa Barbara City Council Final Agenda Page 4

CITY ADMINISTRATOR

PUBLIC HEARING

7. Subject: Public Hearing for the Disestablishment of the Downtown and Old Town Business Improvement Districts Assessments [Ordinance Introduction] (550.01)
Recommendation: That Council:

A. Conduct a public hearing regarding the disestablishment of the Downtown and Old Town Business Improvement Areas; and
B. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Repealing Chapters 4.39 and 4.43 of the Santa Barbara Municipal Code and Disestablishing the Downtown Parking and Business Improvement Area and the Old Town Parking and Business Improvement Area.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
Eric Friedman, Chair
Meagan Harmon
Wendy Santamaria
Keith DeMartini
DATE: February 11, 2025
TIME: 12:00 PM
PLACE: David Gebhard Public Meeting Room
630 Garden Street
Kelly McAdoo
City Administrator Finance Director
Members of the public may participate in person or via Zoom. Zoom instructions are below.  Web: (Participation via Zoom) Register in advance for this webinar:
https://santabarbaraca-gov.zoom.us/webinar/register/WN_44046U24T-CmlOWdRclAFw Webinar ID: 886 6148 6445
Passcode: 422801
After registering, you will receive a confirmation email containing information about joining the webinar.
 Telephone: Dial 1-669-900-6833, Enter Webinar ID: 886 6148 6445 (press *9 to raise/lower hand; press *6 to mute/unmute) REMOTE PUBLIC COMMENT: Members of the public wishing to speak must “raise their hand” in the Zoom platform by selecting the virtual hand icon when their item is called. The keyboard shortcut for this is Alt+Y for Windows and Option+Y for Macs. City staff will activate the speaker’s microphone when the speaker’s name is called. The speaker will then need to unmute themselves.

The keyboard shortcut for this is Alt+M for Windows or Command-Shift-A for Macs.

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

ITEM FOR CONSIDERATION:

Subject: Santa Barbara Clean Energy Program Electricity Rates Recommendation: That Finance Committee forward a recommendation to Council to amend the Santa Barbara Clean Energy Rate Setting Policy formula for the 100% Green energy product offering across all customer types and authorize the City Administrator to determine rates by application of the formula.

File Code No. 120.03

CITY OF SANTA BARBARA

FINANCE COMMITTEE AGENDA REPORT
AGENDA DATE: February 11, 2025
TO: Finance Committee
FROM: Sustainability & Resilience Department
SUBJECT: Santa Barbara Clean Energy Program Electricity Rates RECOMMENDATION:

That Finance Committee forward a recommendation to Council to amend the Santa Barbara Clean Energy Rate Setting Policy formula for the 100% Green energy product offering across all customer types and authorize the City Administrator to determine rates by application of the formula.

DISCUSSION:

Santa Barbara Clean Energy (SBCE), the City’s Community Choice Energy (CCE) program, launched residential service in October of 2021 and commercial service in March of 2022, providing clean, carbon-free electricity to the Santa Barbara community. Despite market volatility, SBCE has maintained competitive rates, reinvested surplus funds into the community, and supported the City’s climate goals.

SBCE currently sets its rates by a formula designed to meet the program’s revenue requirement. The rate formula pegged to SCE’s base (lowest renewable content) rates which are used as the foundational basis for determining rates for all of the SBCE rate classes and customer types. The City Council increased the rate for SBCE’s 100% Green product from the SCE base + $0.012 to SCE base rate + $0.016/kWh during the Fiscal Year 23 budget process consistent with the adopted rate principles and current formulas are applied for each of its energy products as outlined in the table below:

Energy Product Rate Formula
SBCE 100% Green = SCE base rate + $0.016/kWh
SBCE Green Start = SCE base rate
Revenue projections for Fiscal Year 2026 (FY26) paint a challenging picture due to a 12% rate decrease implemented by Southern California Edison (SCE) in October of 2024, which proportionately reduced SBCE rates, per the current SBCE Rate Setting Policy. SCE is currently implementing a second rate reduction which, if SBCE follows its current rate setting policy and concurrently reduces rates, will create a financial shortfall of approximately $14 Agenda Item No. 1
File Code No. 630.02
Finance Committee Agenda Report
Santa Barbara Clean Energy Program Electricity Rates
February 11, 2025

Million in FY26. Balancing the budget in this scenario would require a $0.06/kWh rate premium, impacting energy affordability.

To address the projected deficit, staff analyzed several cost-reduction strategies, including procuring more carbon-free content and less strictly renewable content, reducing resource adequacy procurement, and cutting operational and program costs.

Staff recommend implementing the suite of cost-reduction strategies and amending SBCE’s rate-setting policy to allow the rate premium to keep rates for the 100% Green product at their current level (prior to the latest SCE decrease). This results in an overall premium of $0.036/kWh for the carbon free product as compared to SCE’s base rate, though customers will see no change in their generation charges as compared to today. In a survey of other SCE-territory CCEs, premiums for green energy products are consistently offered at a premium above SCE’s base rate, with premiums ranging from one percent to 47 percent higher per kWh.

Combined, the cost-reduction strategies and holding the rates to the October 2024 rates would lower the forecasted deficit to $3M. Staff further propose to use reserves as a rate stabilization fund to balance the FY26 budget.

It is important to note that SCE’s October 2024 rate reduction was tied to prior overcollections. A reversal in October 2025 is expected, which would likely increase both SCE and SBCE rates and expected to improve SBCE’s financial position. Rates will be reassessed at that time to determine if the premium can be reduced.

This item was considered by the Sustainability Council Committee who voted x-x to forward a recommendation to Council to amend the Rate Setting Policy per staff’s recommendation.

BUDGET/FINANCIAL INFORMATION:

After the conclusion of FY24, the Clean Energy Fund achieved its Council-approved policy reserves target. The combination of the increased costs in segments of the energy market and the rate reduction discussed above means that, while operating at a deficit, SBCE would be able to cover the projected shortfall in FY25 and maintain rate stability using existing reserves with no additional rate changes or cost reductions. However, this level of deficit is not sustainable and would require dipping too far below Councilapproved policy reserves.

The cost-reduction strategies and the proposed amendment to the rate setting policy discussed above will reduce the projected shortfall from $14 million in FY26 to approximately $3 million in FY26 (which can be covered with existing reserves) and $500k in FY27. Adopting the proposed strategies will allow the Fund to maintain adequate reserves, continue customer-oriented programs, continue to facilitate energy efficiency and resiliency projects within the City, and maintain rate stability for customers.

Finance Committee Agenda Report
Santa Barbara Clean Energy Program Electricity Rates
February 11, 2025

ATTACHMENT: Draft SBCE Rate Amendment Resolution

PREPARED AND
SUBMITTED BY: Alelia Parenteau, Sustainability and Resilience Director APPROVED BY: Kelly R. McAdoo, City Administrator

ATTACHMENT
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING THE RATE SETTING

FORMULA FOR SANTA BARBARA CLEAN ENERGY
THE COUNCIL OF THE CITY OF SANTA BARBARA RESOLVES AS FOLLOWS:

1. On May 12, 2021, the City Council adopted Resolution No. 21-032 approving the rate setting formula for Santa Barbara Clean Energy (SBCE and authorizing the City Administrator to determine rates by application of the formula.

Resolution No. 21-032 also established the following principles regarding rates:

Rate Consideration Definition
Revenue Sufficiency Rates should recover all program expenses, debt service requirements, and reserves
Rate Competitiveness Rates should allow SBCE to successfully compete in the marketplace to retain and attract customers
Rate Stability Rate changes should be minimized to reduce customer bill impacts
Customer
Understanding
Rates should be simple, transparent, and easily
understood by customers
Equity Among
Customers
Rate differences among customers should be justified
by differences in usage characteristics or cost of
service
Efficiency Rates should generally encourage conservation and efficient use of electricity

2. The City Council increased the rate for SBCE’s 100% Green product from the SCE base + $0.012 to SCE base rate + $0.016/kWh during the Fiscal Year 23 budget process consistent with the adopted rate principles.

3. The City Council has reviewed and considered a report and recommendation of the Sustainability and Resilience Director and Sustainability and Resilience Committee indicating that an increase to the rate for SBCE’s 100% Green product is needed to maintain revenue sufficiency. Therefore, the rate formula for the SBCE 100% Green product is increase to the amount shown on the following schedule:

ATTACHMENT
Energy Product Rate Formula
SBCE 100% Green = SCE base rate + $0.036/kWh
SBCE Green Start = SCE base rate
SBCE Resilient Net Surplus Compensation
Rate
= $0.0663/kWh for excess solar
generation

4. The City Administrator is authorized to determine the rates for SBCE by application of the formula to the various SCE rates across all customer classes and service categories. Because the rates for SBCE service are tied to the rates approved by the Public Utilities Commission for provision by Southern California Edison (SCE) of electricity within the City of Santa Barbara, the City Administrator may from time-to-time set the rates for SBCE at an amount less than the amount stated in the rate formula as the City Administrator determines to be consistent with the principles stated in section 1.

5. The City Administrator may delegate the authority granted by this resolution.

6. The rates established by this resolution are necessary to fund the operating expenses of SBCE and are exempt from the California Environmental Quality Act pursuant to Public Resources Code § 21080(b)(8) and 14 Cal. Code of Regs. § 15273.

7. This resolution shall be effective upon adoption.
01/28/2025 Santa Barbara City Council Minutes Page 1 of 3

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

SPECIAL MEETING
JANUARY 28, 2025
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, Oscar Gutierrez, Meagan Harmon, Mike Jordan, Wendy Santamaria (10:33 a.m.), Kristen W. Sneddon, Mayor Randy Rowse.

Councilmembers absent: None.

Staff present: City Administrator Kelly McAdoo, City Attorney Sarah J. Knecht, Deputy City Clerk Austin Taylor.

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

CLOSED SESSION

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 Michael Claytor v. City of Santa Barbara WCAB Case Nos.: ADJ10552839, ADJ11821063, ADJ11754071, ADJ15543656.

Agenda Item No. 1
File Code No. 000.00
01/28/2025 Santa Barbara City Council Minutes Page 2 of 3

1. Subject: Conference with City Attorney – Existing Litigation – Gov. Code §54956.9(d)(1) (160.03) (CONT’D)
Scheduling: Duration 30 mins; 10:30 a.m.

Report: None anticipated
Document:
- January 28, 2025, report from the City Attorney.

Time:
- 10:33 a.m. – 10:49 a.m.

Report:
- No report made.

2. Subject: Conference with City Attorney--Anticipated Litigation -- Gov. Code § 54956.9(d)(2) & (e)(3) (160.03)
Recommendation: That Council hold a closed session to consider significant exposure to litigation (one potential case) pursuant to Government Code Section 54956.9(d)(2) & (e)(3) and take appropriate action as needed.

The anticipated litigation is based upon significant exposure arising out of the claim filed on October 11, 2024, through the law firm of Christina A. Humphrey; a copy is on file with the City Clerk’s office.

Scheduling: Duration: 1 hour; 10:30 a.m.

Report: None anticipated
Document:
- January 28, 2025, report from the City Attorney.

Time:
- 10:49 a.m. – 11:30 a.m.

Report:
- No report made.

PUBLIC COMMENT ON ITEMS LISTED ON THE AGENDA
No one wished to speak.
01/28/2025 Santa Barbara City Council Minutes Page 3 of 3

ADJOURNMENT
Mayor Rowse adjourned the meeting at 11:30 a.m.

Approved and adopted by the City Council of the City of Santa Barbara on February 11, 2025.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
12/03/2024 Santa Barbara City Council Minutes Page 1 of 8

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
DECEMBER 3, 2024
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:00 p.m. (The Ordinance Committee met at 11:30 a.m. The Finance 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, City Attorney Sarah J. Knecht, City Clerk Services Manager Sarah Gorman.

CEREMONIAL ITEMS

1. 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 December 31, 2024.

Action: City Administrator Kelly McAdoo listed the names of the award recipients and expressed her gratitude towards their years of service.

CHANGES TO THE AGENDA
There were no changes to the agenda.
12/03/2024 Santa Barbara City Council Minutes Page 2 of 8 CONSENT CALENDAR (Item Nos. 3 – 4, 6, 8 – 13)
The titles of the Resolutions and Ordinances related to the consent calendar were read.

Motion:

Councilmembers Jordan / Harmon to approve the balance of consent calendar other than Items 2, 5, and 7, as recommended.

Vote:

Unanimous roll call vote.

3. Subject: Update of the City’s Conflict-of-Interest Code [Resolution] (110.04) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Adopting the Conflict-of-Interest Code of the City of Santa Barbara to Incorporate by Reference the Fair Political Practices Commission’s Model Code, and Rescinding Resolution No. 22-099.

Action: Approved the recommendation; Resolution No. 24-134 (December 3, 2024, report from the City Administrator; proposed Resolution).

4. Subject: Water and Sewer Priority Policy for Housing Units Affordable to Lower-Income Households [Resolution] (660.01)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Approving Policy and Procedures Regarding the Provision of Water and Sewer Services to Proposed Developments that Include Housing Units Affordable to Lower-Income Households.

Action: Approved the recommendation; Resolution No. 24-135 (December 3, 2024, report from the Public Works Director; proposed Resolution).

6. Subject: Increase Grant Funding for the Cabrillo Boulevard and Union Pacific Railroad Bridge Project and the Los Patos Undercrossing Replacement Project [Resolution; Agreement] (150.03)
Recommendation: That Council:

A. Authorize the City Administrator to sign Amendment No. 7 to the Memorandum of Understanding with the Santa Barbara County Association of Governments to increase the funding from the Santa Barbara County Association of Governments by $2,671,395 from $6,249,862 to $8,921,257 for work to complete the Right of Way phase of The Cabrillo Boulevard and Union Pacific Railroad Bridge Project and the Los Patos Undercrossing Replacement Project; and
12/03/2024 Santa Barbara City Council Minutes Page 3 of 8 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 Right of Way Phase of the Cabrillo Boulevard and Union Pacific Railroad Bridge Project and the Los Patos Undercrossing Replacement Project.

Action: Approved the recommendations; Resolution No. 24-137; Agreement No. 25,513.7 (December 3, 2024, report from the Public Works Director; proposed Resolution).

8. Subject: Resolution Approving the 2024-2026 AFSCME Represented Management Bargaining Unit Memorandum of Understanding, and Amending Resolution No. 24-131, the Position and Salary Control Resolution for Fiscal Year 2025 [Resolution; Agreement] (440.02)
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 Manager’s Bargaining Unit; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-131, the Position and Salary Control Resolution for Fiscal Year 2025, Affecting the Salary Ranges for Certain Management Classifications Effective November 30, 2024.

Action: Approved the recommendations; Resolution Nos. 24-140 and 24-141; (December 3, 2024, report from the Human Resources Director; proposed Resolutions).

9. Subject: October 2024 Investment Report (260.02)
Recommendation: That Council accept the October 2024 Investment Report.

Action: Approved the recommendation (December 3, 2024, report from the Finance Director).

10. Subject: Amendments to Increase On-Call Engineering Services Contracts for Pre-Qualified Professional Engineering Firms for Water Resources Facilities Support [Agreement] (540.1)
Recommendation: That Council authorize the Public Works Director to execute amendments to increase four City Professional Services Agreements for on-call engineering services for the Water Resources Division’s water and wastewater facilities by the amount of $100,000 each.
12/03/2024 Santa Barbara City Council Minutes Page 4 of 8 Action: Approved the recommendation; Agreement Nos. 26,809.1, 26,806.2, 26,818.2 (December 3, 2024, report from the Public Works Director).

11. Subject: Desalination Plant Offshore Pump Platform Stabilization Project Construction Management [Agreement] (540.1)
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.

Action: Approved the recommendation; Agreement No. 28,594 (December 3, 2024, report from the Public Works Director).

12. Subject: Professional Services Agreement for Electronic Bill Presentment and Payment Services for Utility Bills [Agreement] (210.01) 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.

Action: Approved the recommendation; Agreement No. 28,593 (December 3, 2024, report from the Finance Director).

13. Subject: Best Interest Waiver for City Core Radio System Component Replacement, Installation, and Support Services (520.04) 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.

Action: Approved the recommendation (December 3, 2024, report from the Chief of Police).

REPORT FROM THE ORDINANCE COMMITTEE
Ordinance Committee Chair Jordan reported that the Committee discussion of ODDS and had suggestions for staff to consider before going to Council and visit to HCD and return to council at a future date.
12/03/2024 Santa Barbara City Council Minutes Page 5 of 8

GENERAL PUBLIC COMMENT
Members of the Public: Anthony Minatti.

Councilmember A. Gutierrez requested a discussion of Item 8.

Speakers:
- Staff: Labor Relations Manager Sam Ramirez.

PULLED CONSENT ITEMS
Motion:

Councilmembers Jordan / Friedman to approve the Items 2, 5, and 7, as recommended.

Vote:

Unanimous roll call vote.

2. Subject: Approval of Required Documents to Implement Measure I 0.50% Transactions and Use Tax Implementation with the California Department of Tax and Fee Administration [Ordinance Introduction; Resolution] (210.01) Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the City Council of the City of Santa Barbara Authorizing the Finance Director to Execute Agreements with the California Department of Tax and Fee Administration for Implementation of a Local Transactions and Use Tax;
B. Adopt, by reading of title only, a Resolution of the City Council of the City of Santa Barbara Authorizing Examination of Sales or Transactions and Use Tax Records; and
C. Introduce and subsequently adopt, by reading of title only, an Ordinance of the City Council of the City of Santa Barbara Amending Section 4.15.060 of the Santa Barbara Municipal Code to Replace Reference to the State Board of Equalization with Reference to the California Department of Tax and Fee Administration.

Action: Approved the recommendations; Resolution Nos. 24-132 and 24-133 (December 3, 2024, report from the Finance Director; proposed Resolutions; proposed Ordinance).

5. Subject: Authorization to Amend the Legal Services Agreement with Burke, Williams & Sorensen, LLP [Resolution; Agreement] (160.01) Recommendation: That Council:
12/03/2024 Santa Barbara City Council Minutes Page 6 of 8 A. Authorize the City Attorney to execute a third amendment to the legal services agreement with Burke, Williams & Sorensen, LLP, for legal services related to the development project at 1609 Grand Avenue by increasing the agreement not to exceed amount from $50,000 to $200,000, to be paid from funds appropriated from the General Fund in Fiscal Year 2025; 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 Legal Services for the Development Project Located at 1609 Grand Avenue.

Action: Approved the recommendations; Resolution No. 24-136; Agreement No. 28,611 (December 3, 2024, Report from the City Attorney; proposed Resolution).

7. Subject: Resolution Approving the 2024-2026 Unrepresented Management Salary Plan, and Amending Resolution No. 24-131, the Position and Salary Control Resolution for Fiscal Year 2025 [Resolution] (410.06) 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 Salary Plan Applicable Only to Unrepresented Managers and Professional Attorneys (except the City Administrator and City Attorney), and the 2024-2026 Salary Plan Applicable Certain Unrepresented Safety Managers, Effective November 30, 2024; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-131, the Position and Salary Control Resolution for Fiscal Year 2025, Affecting Certain Management Classifications, Effective November 30, 2024.

Action: Approved the recommendations; Resolution Nos. 24-138 and 24-139 (December 3, 2024, report from the Human Resources Director; proposed Resolutions).

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember Friedman attended the following meeting or event: 1. Library Board meeting; 2. Airport Commission meeting; 3. American Cancer Society gala; 4. Sea Level Rise Working Group meeting.
- Councilmember O. Gutierrez attended the following meeting or event: 1. Arts Advisory Committee Meeting; 2. Fire and Police Commission meeting. 12/03/2024 Santa Barbara City Council Minutes Page 7 of 8

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

CITY ADMINISTRATOR

14. Subject: Presentation on the Findings and Recommendations from the Housing Crisis Ad Hoc Committee (170.01)
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.

Documents:
- December 3, 2024, report from the City Administrator. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: Assistant to the City Administrator Barbara Andersen. - Members of the Public: Rob Fredericks; Virginia Rubsam; Tom Salman, Betty Jeppesen; Brian Johnson; Staci Caplan; Jay Hartz; Therese Gray; Hannah Cohen; Stephen Sharp Queener; Angeliza; Estela Montano; Nancy Avoce; Mark Zimmer; Michael Schaumberg; Susie Tomlinson; Patricia Costello; Loy Beardsmore; Teresa Patino; Michael Bruce; Veronica Strauss; Stanley Tzankov; Kari Weber; Wendy Santamaria; Zoila Cabrera; Paul Knight; Jacqueline Inda; Christopher Perez.

Discussion:
- Staff’s presentation to Council covered topics such as dedicating permanent funding sources for the Local Housing Trust Fund, implementing a rent stabilization ordinance, creating a rental registry, sustain access to local counsel program; create incentive programs for housing providers; form “tiny home” ownership program; facilitate more housing opportunities for single parents; create incentives for property owners to build ADUs; expand down-payment assistance programs and education for first-time homebuyers; create more easily accessible City resources to help build greater understanding of Tenants’ Rights and Housing Provider Rights and Responsibilities. Staff direction was provided. Councilmembers’ questions were answered.

COUNCIL AND STAFF COMMUNICATIONS
12/03/2024 Santa Barbara City Council Minutes Page 8 of 8

COUNCILMEMBER ENGAGEMENTS
- Councilmember O. Gutierrez attended the following meeting or event: 1. Farewell party for Norma Cervantes; 2. Farewell party for Richard Block at the Zoo; 3. UCSB Town Hall regarding new Chancellor; 4. Chamber Meet the Electeds event; 5.

American Cancer Society fundraiser; 6. SBCAN’s fundraiser; 7. Local allies meeting for disabled residents 8; Entrepreneurs meeting at Paseo Nuevo; 9. Paseo Nuevo tree lighting with Mayor.
- Councilmember Sneddon attended the following meeting or event: 1. Thanking Alelia Parenteau of Sustainability and Resilience for presentation at City College.

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

ADJOURNMENT
Mayor Rowse adjourned the meeting at 4:50 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on February 11, 2025.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
12/10/2024 Santa Barbara City Council Minutes Page 1 of 9

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
DECEMBER 10, 2024
COUNCIL CHAMBERS, 735 ANACAPA STREET

CALL TO ORDER
Mayor Randy Rowse called the meeting to order at 2:01 p.m. (The Ordinance Committee met at 12:00 p.m. The Finance 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, City Attorney Sarah J. Knecht, Deputy City Clerk Austin Taylor.

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

CONSENT CALENDAR (Item Nos. 1 – 3, 5 - 17)
The titles of the Ordinances and Resolutions related to the consent calendar were read.

Motion:

Councilmembers Jordan/ A. Gutierrez to approve the consent calendar as recommended.

Vote:

Unanimous roll call vote.
12/10/2024 Santa Barbara City Council Minutes Page 2 of 9

1. Subject: Minutes (000.00)
Recommendation: That Council waive reading and approve the minutes for the special meetings of November 12, and November 19, 2024; for the regular meetings of November 12, and November 19, 2024; and the amended minutes of the regular meeting of October 15, 2024.

Action: Approved the recommendation.

2. Subject: Introduction of Ordinance Authorizing a Utility Easement to Southern California Edison for the Installation of Electric Vehicle Charging Facilities at the Eastside Library At 1136 Montecito Street [Ordinance Introduction] (330.03)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Public Works Director to Execute a Public Utility Easement Deed to Southern California Edison on City Library Property Located at the Eastside Library.

Action: Approved the recommendation (December 10, 2024, report from the Public Works Director; proposed Ordinance).

3. Subject: Approval of Required Documents to Implement Measure I 0.50% Transactions and Use Tax Implementation with the California Department of Tax and Fee Administration [Ordinance Adoption] (210.01) Recommendation: That Council adopt, by reading of title only, an Ordinance of the City Council of the City of Santa Barbara Amending Section 4.15.060 of the Santa Barbara Municipal Code to Replace Reference to the State Board of Equalization with Reference to the California Department of Tax and Fee Administration.

Action: Approved the recommendation; Ordinance No. 6166.

5. Subject: Amendment to Position Salary Control Resolution 24-141 with Updates to Classification and Compensation for Certain Positions [Resolution] (410.06)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution 24-141, the Position Salary Control Resolution for Fiscal Year 2025, to Amend the Established Salary for Positions as Listed effective December 28, 2024.

Action: Approved the recommendation; Resolution No. 24-143 (December 10, 2024, report from the Human Resources Director; proposed Resolution). 12/10/2024 Santa Barbara City Council Minutes Page 3 of 9

6. Subject: Increase in Construction Change Order Authority for Construction Support Services and Design Agreements for the Central Library Renovation Project [Resolution; Agreement] (570.04)
Recommendation: That Council:

A. Authorize an increase in the Public Works Director’s Change Order Authority to approve expenditures for extra work for the Central Library Renovation Project with Nationwide Contracting Services, Inc., Contract No. 28,050, in the amount of $309,718, for a total construction expenditure authority of $11,736,243;
B. Authorize the Public Works Director to execute the Fifth Amendment to the City Professional Services Contract No. 26,177 with LMA Architects in the amount of $18,500 for construction administration services, for a total contract amount of $260,317; and
C. 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 Construction of the Central Library Renovation Project.

Action: Approved the recommendations; Resolution No. 24-144; Agreement Nos. 28,050.1; 26,177.5 (December 10, 2024, report from the Library Director; proposed Resolution).

7. Subject: Acceptance of $7,500 From Heal the Ocean [Resolution] (570.03) Recommendation: That Council 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 and Expenditure Appropriations by $7,500 in the Fiscal Year 2025 Waterfront Department Abandoned Vessel Fund for a Donation Received from Heal the Ocean to Incentivize Participation in the Department’s Vessel Turn In Program.

Action: Approved the recommendation; Resolution No. 24-145 (December 10, 2024, report from the Waterfront Director; proposed Resolution).

8. Subject: Certification of Election Results for the General Municipal Election of November 5, 2024 [Resolution] (110.03)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Reciting the Fact of the General Municipal Election Held on November 5, 2024, and Declaring the Results and Setting Forth Such Other Matters as Required by State Elections Law.
12/10/2024 Santa Barbara City Council Minutes Page 4 of 9 Action: Approved the recommendation; Resolution No. 24-146 (December 10, 2024, report from the City Administrator; proposed Resolution).

9. Subject: Amendment for the Design Contract for the De La Vina Street Bridge Replacement Project [Agreement] (530.04)
Recommendation: That Council authorize the Public Works Director to execute the Third Amendment to the City Professional Services Agreement No. 25,746-A with Bengal Engineering, Inc., in the amount of $58,671 for engineering design services and authorize the Public Works Director to approve expenditures of up to $20,000 for extra services that may result from necessary changes in the scope of work.

Action: Approved the recommendation; Agreement No. 25,746.3 (December 10, 2024, report from the Public Works Director).

10. Subject: Amendment to Contract with IDE Americas for Charles E. Meyer Desalination Plant Operations [Agreement] (540.1)
Recommendation: That Council authorize the Public Works Director to execute Amendment 1 to the Design/Build/Operate Agreement with IDE Americas for the Charles E. Meyer Desalination Plant.

Action: Approved the recommendation; Agreement No. 25,277.1 (December 10, 2024, report from the Public Works Director).

11. Subject: Marketing and Promotions with Downtown Organization of Santa Barbara, Inc. [Agreement] (180.02)
Recommendation: That Council authorize the Public Works Director to execute a six-month agreement in the amount of $303,800 with Downtown Organization of Santa Barbara, Inc. (doing business as Downtown Santa Barbara) for marketing and promotions from December 1, 2024, through June 30, 2025.

Action: Approved the recommendation; Agreement No. 28,595 (December 10, 2024, report from the Public Works Director).

12. Subject: Memorandum of Understanding with the Commercial Fishermen of Santa Barbara [Agreement] (570.03)
Recommendation: That Council authorize the Waterfront Director to execute a Memorandum of Understanding with the Commercial Fishermen of Santa Barbara for grant support from December 13, 2024, through December 31, 2028.

Action: Approved the recommendation; Agreement No. 28,596 (December 10, 2024, report from the Waterfront Director).
12/10/2024 Santa Barbara City Council Minutes Page 5 of 9

13. Subject: Public Outreach Services for Design of the Vic Trace Reservoir Replacement Project [Agreement] (540.09)
Recommendation: That Council authorize the Public Works Director to execute a City Professional Services Agreement with Katz & Associates, Inc., in the amount of $586,250 for design phase public outreach services for the Vic Trace Reservoir Replacement Project and authorize $58,625 for potential extra services, for a total expenditure authority of $644,875.

Action: Approved the recommendation; Agreement No. 28,597 (December 10, 2024, report from the Public Works Director).

14. Subject: Second Contract Amendment with RRM Design Group for Final Design and Construction Documents for the Dwight Murphy Field Renewal Project [Agreement] (570.05)
Recommendation: That Council authorize the Public Works Director to execute a second contract amendment with RRM Design Group in the amount of $18,700 for bid support services for the Dwight Murphy Field Renewal Project.

Action: Approved the recommendation; Agreement No. 28,009.2 (December 10, 2024, report from the Public Works Director).

15. Subject: Approval of Benefit Plans Effective January 1, 2025 (430.06) Recommendation: That Council:

A. Approve the renewal rates for the: CalPERS Health Plans; Delta Dental Plans; Vision Service Plans; Employee Assistance Program (EAP); Health and Dependent Care Flexible Spending Accounts (FSA) benefits; and B. Authorize the City Administrator to execute any necessary contracts or any amendments to agreements or contracts to effectuate the new rates.

Action: Approved the recommendation; Agreement No. 28,598 (December 10, 2024, report from the Human Resources Director).

16. Subject: Santa Barbara Clean Energy 2023 Power Content Label Attestation (630.06)
Recommendation: That Council approve the attestation specified under California’s Power Source Disclosure Program, which requires the governing Council of a public agency providing retail electric service to endorse the accuracy of each annual report and power content label, as submitted to the California Energy Commission, for the previous year.
12/10/2024 Santa Barbara City Council Minutes Page 6 of 9 Action: Approved the recommendation (December 10, 2024, report from the Sustainability and Resilience Director).

17. Subject: Special Recruitment for Fire and Police Commission (140.02) Recommendation: That Council:

A. Approve the City Clerk's Office to accept applications through Friday, January 17, 2025, at 5:00 p.m. to fill an unscheduled vacancy in the Fire and Police Commission;
B. Conduct in-person interviews of applicants for the vacancy during the Council Meeting on Tuesday, January 28, 2025; and
C. Make an appointment to fill the vacancy on Tuesday, February 4, 2025.

Action: Approved the recommendations.

REPORT FROM THE ORDINANCE COMMITTEE
Ordinance Committee Chair Jordan reported that the Ordinance Committee recommended to forward to Council for introduction, an Ordinance of the Council of the City of Santa Barbara Amending Chapter 14.08 regarding water metering requirements for affordable housing adaptive reuse projects, and other Title 14 revisions.

GENERAL PUBLIC COMMENT
Members of the Public: Pat Kelly.

PULLED CONSENT ITEMS

4. Subject: A Resolution Denying the Appeal and Upholding the Decision of the Planning Commission Regarding the 101 Garden Street Hotel Project [Resolution] (640.07)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Denying the Appeals of the Law Office of Marc Chytilo, on Behalf of Keep the Funk, Inc.; Steven Johnson; and Rich Untermann, and Upholding the Decision of the Planning Commission to Approve the Project at 101 Garden Street.

Documents:
- December 10, 2024, report from the Community Development Director; proposed Resolution.
12/10/2024 Santa Barbara City Council Minutes Page 7 of 9 Speakers:
- Staff: None.
- Members of the Public: Mark Chytilo.

Motion:

Councilmember Jordan/Friedman to approve the recommendations as made by staff; Resolution No. 24-142.

Vote:

Majority roll call vote (Ayes: Councilmembers Harmon, Friedman, Jordan, A. Gutierrez, Mayor Rowse; Noes: Councilmembers O. Gutierrez, Sneddon).

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
None.

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

QUASI-JUDICIAL HEARING RULES APPLY TO THE FOLLOWING AGENDA ITEM

PUBLIC HEARING

COMMUNITY DEVELOPMENT DEPARTMENT

18. Subject: Appeal of Planning Commission’s Approval of a Hotel Project at 17– 21 West Montecito Street (640.07)
Recommendation: That Council:

A. Consider the appeal of Steven A. Johnson of the Planning Commission’s approval of a Parking Modification, Development Plan and Coastal Development Plan, and determination that the project is exempt from further environmental review under California Environmental Quality Act Guidelines Section 15332 (Infill Development), for the Hotel Project at 17– 21 W Montecito Street; and
B. Direct staff to return to Council with a Decision and Findings Resolution reflecting the outcome of the appeal.

Documents:
- December 10, 2024, report from the Community Development Director. - PowerPoint presentation prepared and made by staff.
- PowerPoint presentation prepared and made by appellant. - PowerPoint presentation prepared and made by applicant.

Public Hearing Opened: 2:18 p.m.
12/10/2024 Santa Barbara City Council Minutes Page 8 of 9 Ex-Parte Communications:
- None disclosed.

Speakers:
- Staff: Senior Planner Megan Arciniega; Chief Building Official Christina Dye; Senior Plan Check Engineer Chris Short; Assistant City Attorney John Doimas.
- Appellant: Steven Johnson.
- Applicant: Clay Aurell.
- Members of the Public: Brittney Zajic.

Public Hearing Closed: 3:36 p.m.

Motion:

Councilmembers Sneddon/Jordan to approve the recommendations as made by staff.

Vote:

Unanimous roll call vote.

Councilmember Harmon left the meeting at 3:39 p.m.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember Friedman attended the following meetings or events: 1. Christmas Tree Lighting; 2. California League of Cities Leadership Forum. - Councilmember A. Gutierrez attended the following meetings or events: 1.

Recognized Officer Adrian Gutierrez.
- Councilmember O. Gutierrez attended the following meetings or events: 1. Downtown Santa Barbara Holiday Party at Lobero Theater; 2. La Arcada Walk; 3. Santa Barbara Independent Holiday Party; 4. Sustainability Department Holiday Party; 5. Grand Opening of Friends of State Street Office; 6. Santa Barbara Independent Local Heroes Luncheon; 7. Brail Roundtable; 8. Coastal Housing Coalition Conference; 9.

Downtown State Street Tree Lighting; 10. Parade of Lights; 11. Show at Band Shell;

12. Memorial Service.
- Councilmember Sneddon attended the following meetings or events: 1. Louise Gallery Davis Center; 2. Independent Local Heroes Awards; 3. Sustainability Holiday Open House; 4. Parade of Lights; 5. Recognized Planning Commissioner Sheila Lodge.

RECESS
3:46 p.m. – 5:03 p.m.
12/10/2024 Santa Barbara City Council Minutes Page 9 of 9

CEREMONIAL ITEMS

19. Subject: United Boys and Girls Club Gold Card Recipients - Estimated Time 5:00 P.M. (120.04)
Action: Mayor Rowse presented the award to the Boys and Girls Club gold card recipients and congratulated them on their achievement.

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

ADJOURNMENT
Mayor Rowse adjourned the meeting at 5:11 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on February 11, 2025.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
01/14/2025 Santa Barbara City Council Minutes Page 1 of 12

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
JANUARY 14, 2025
COUNCIL CHAMBERS, 735 ANACAPA STREET

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

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Oscar Gutierrez, Meagan Harmon, Mike Jordan, Wendy Santamaria, Mayor Randy Rowse.

Councilmembers absent: Kristen W. Sneddon.

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

CEREMONIAL ITEMS

1. Subject: Human Trafficking Awareness Month (120.04)
Action: Mayor Rowse presented the proclamation to Jeff Shaffer and Kayla Petersen.

Speakers:
- Members of the Public: Kenneth Loch; Karen McFadden.

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 January 31, 2025.
01/14/2025 Santa Barbara City Council Minutes Page 2 of 12 Action: City Administrator Kelly McAdoo expressed her gratitude towards all City employees that were recognized on this day.

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

CONSENT CALENDAR (Item Nos. 3 – 4, 6 – 17, 19 – 25)
The titles of the Ordinances and Resolutions related to the Consent Calendar were read.

Motion:

Councilmembers Friedman/Harmon to approve the balance consent calendar as recommended, excluding items 5 and 18.

Vote:

Unanimous roll call vote (Absent: Councilmember Sneddon).

3. Subject: Adoption of Ordinance Authorizing a Utility Easement to Southern California Edison for the Installation of Electric Vehicle Charging Facilities at the Eastside Library At 1136 Montecito Street [Ordinance Adoption] (330.03)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Public Works Director to Execute a Public Utility Easement Deed to Southern California Edison on City Library Property Located at The Eastside Library.

Action: Approved the recommendation; Ordinance No. 6167.

4. Subject: Introduction of Ordinance Authorizing a Utility Easement to Southern California Edison for the Installation of Electric Vehicle Charging Facilities at the Depot Lot at 1 West Montecito Street [Ordinance Introduction] (330.03)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Public Works Director to Execute a Public Utility Easement Deed to Southern California Edison on City Property Located at The Depot Lot.

Action: Approved the recommendation (January 14, 2025, report from the Public Works Director; proposed Ordinance).
01/14/2025 Santa Barbara City Council Minutes Page 3 of 12

6. Subject: Amendment to Position Salary Control Resolution 24-143 with Updates to Classification and Compensation for Certain Positions [Resolution] (440.02)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution 24-143, the Position Salary Control Resolution for Fiscal Year 2025, to Amend the Established Salary for Positions as Listed Effective January 11, 2025.

Action: Approved the recommendation; Resolution No. 25-001 (January 14, 2025, report from the Human Resources Director; proposed Resolution).

7. Subject: Amendments to the Schedule of Penalties, Fees, and Service Charges Related to Sewer Service Connections [Resolution] (540.13) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing the City Clerk to Update Resolution 24-068 as Provided Therein, and Amend the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges Related to Sewer Service Connections.

Action: Approved the recommendation; Resolution No. 25-002 (January 14, 2025, report from the Finance Director; proposed Resolution).

8. Subject: Appropriation of Golf Fund Reserves into Golf Fund Capital Budget in FY 2025 for the Sewer Lateral Replacement Project [Resolution] (570.05)
Recommendation: That Council:

A. Approve the appropriation of $302,108 from Golf Fund Reserves to fund construction of the Sewer Lateral Replacement Project at the Santa Barbara Golf Club; 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 (FY) 2025, to Increase Revenue and Expenditure Appropriations in the Parks and Recreation Department Golf Division, Capital Budget, in the Amount of $302,108 for Construction of the Sewer Lateral Replacement Project at the Santa Barbara Golf Club.

Action: Approved the recommendations; Resolution No. 25-003 (January 14, 2025, report from the Parks and Recreation Director; proposed Resolution). 01/14/2025 Santa Barbara City Council Minutes Page 4 of 12

9. Subject: Approval of Procurement for ARFF Apparatus Decontamination Services [Resolution] (560.04)
Recommendation: That Council:

A. Authorize the Airport Director to execute a professional services agreement with CDM Smith, Inc in the amount of $224,597 to perform decontamination of per- and polyfluoroalkyl substances from three Aircraft Rescue and Fire Fighting vehicles; 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 Authorize Additional Appropriations for the Decontamination of Per- and Polyfluoroalkyl Substances from Three Aircraft Rescue and Fire Fighting Vehicles.

Action: Approved the recommendations; Resolution No. 25-004; Agreement No. 28-601 (January 14, 2025, report from the Airport Director; proposed Resolution).

10. Subject: Fire Department Operations Equipment Acceptance of Donation and Grant Funding [Resolution] (520.02)
Recommendation: That Council:

A. Accept a Donation of 25 Portable Radios from One805; B. Accept a Donation of 25 Thermal Imaging Cameras from Santa Barbara Firefighters Alliance; and
C. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Accepting Grant Funds, Authorizing the Fire Chief to Enter into a Grant Agreement, and Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Increase Revenue and Expenditure Appropriations by $100,000 in the Fire Department Fiscal Year 2025 Operations Fund for Regional Crash Response and Extrication Improvement.

Action: Approved the recommendations; Resolution No. 25-005 (January 14, 2025, report from the Fire Chief; proposed Resolution). 01/14/2025 Santa Barbara City Council Minutes Page 5 of 12

11. Subject: Resolution Authorizing the Examination of Transactions and Use Tax Records [Resolution] (210.01)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Examination of Transactions and Use Tax Records.

Action: Approved the recommendation; Resolution No. 25-006 (January 14, 2025, report from the Finance Director; proposed Resolution).

12. Subject: Update Reimbursement Resolution for State Revolving Fund Loan Application for the Cater Reservoir Resiliency Project [Resolution] (540.01) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Supplementing Resolution No. 22-106 Declaring its Official Intent to Reimburse Capital Expenditures Paid Prior to the Approval by the State Water Resources Control Board of a Drinking Water State Revolving Fund Installment Agreement for the Cater Reservoir Resiliency Project.

Action: Approved the recommendation; Resolution No. 25-007 (January 14, 2025, report from the Public Works Director; proposed Resolution).

13. Subject: Update Reimbursement Resolution for State Revolving Fund Loan Agreement for the El Estero Water Resource Center Electrical Distribution Renewal Project [Resolution] (540.01)
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Supplementing Resolution No. 19-058 Declaring its Official Intent to Reimburse Capital Expenditures Paid Prior to the Approval of an Amendment by the State Water Resources Control Board of a Clean Water State Revolving Fund Installment Agreement for the El Estero Water Resource Center Electrical Distribution Renewal Project.

Action: Approved the recommendation; Resolution No. 25-008 (January 14, 2025, report from the Public Works Director; proposed Resolution). 01/14/2025 Santa Barbara City Council Minutes Page 6 of 12

14. Subject: Resolution of Intention of Disestablishment for the Downtown and Old Town Business Improvement Districts [Resolution] (290.00) Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Declaring its Intention to Disestablish the Downtown Parking and Business Improvement Area and the Old Town Parking and Business Improvement Area, and to Schedule a Public Hearing to be Held on February 11, 2025, at 2:00 p.m. to Consider Adoption of an Ordinance or Ordinances Disestablishing the Improvement Areas.

Action: Approved the recommendation; Resolution No. 25-009 (January 14, 2025, report from the City Administrator; proposed Resolution).

15. Subject: Contract for Construction of the Highway Safety Improvement Program Cycle 10 Mission Street and State Street Safety Lighting Project [Resolution; Agreement] (530.04)
Recommendation: That Council:

A. Award a contract to Alfaro Communications Construction in their low bid amount of $2,100,034 for construction of the Highway Safety Improvement Program Cycle 10 Mission Street and State Street Safety Lighting Project, Bid No. 5002; and authorize the Public Works Director to execute the contract and approve expenditures up to $210,000 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, for a total expenditure authority of $2,310,034; 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 Highway Safety Improvement Program Cycle 10 Mission Street and State Street Safety Lighting Project.

Action: Approved the recommendation; Resolution No. 25-010; Agreement No. 28,604 (January 14, 2025, report from the Finance Director; proposed Resolution).

16. Subject: Fiscal Year 2025 Interim Financial Statements for the Four Months Ended October 31, 2024 (250.02)
Recommendation: That Council accepts the Fiscal Year 2025 Interim Financial Statements for the four months ended October 31, 2024.

Action: Approved the recommendations (January 14, 2025, report from the Finance Director).
01/14/2025 Santa Barbara City Council Minutes Page 7 of 12

17. Subject: November 2024 Investment Report (260.02)
Recommendation: That Council accept the November 2024 Investment Report.

Action: Approved the recommendations (January 14, 2025, report from the Finance Director).

19. Subject: Contract with Santa Barbara Unified School District for Park Ranger Patrol Services [Agreement] (570.06)
Recommendation: That Council 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.

Action: Approved the recommendations; Agreement No. 28,603 (January 14, 2025, report from the Parks and Recreation Director).

20. Subject: First Contract Amendment with Design Arc, Inc. for the Franceschi Park Interpretive Pavilion Preliminary Design [Agreement] (570.05) Recommendation: That Council authorize the Parks and Recreation Director to execute a first contract amendment with Design Arc, Inc. in the amount of $41,684 for the Franceschi Park Interpretive Pavilion Preliminary Design.

Action: Approved the recommendations; Agreement No. 28,445.1 (January 14, 2025, report from the Parks and Recreation Director).

21. Subject: Increase Contract for Cruise Ship Passenger Shuttle Service with Santa Barbara Airbus [Agreement] (570.03)
Recommendation: That Council authorize the Waterfront Director to increase Professional Service Agreement No. 28,040 with Santa Barbara Airbus, Inc. in the amount of $22,000 for a total contract amount of $150,705 for cruise ship shuttle services.

Action: Approved the recommendations; Agreement No. 28,040.2 (January 14, 2025, report from the Waterfront Director).

22. Subject: Declaration of Covenants, Conditions, and Restrictions Imposed on Real Property Located at 229 San Clemente Street [Agreement] (640.08) Recommendation: That Council authorize the Community Development Director to execute a Declaration of Covenants, Conditions, and Restrictions Imposed on the Real Property located at 229 San Clemente St. A.P.N. 045-151-008, in a form approved by the City Attorney, releasing the City from liability regarding the 01/14/2025 Santa Barbara City Council Minutes Page 8 of 12 demolition of an existing one-story residence and shed and the construction of a new two-story residence with a basement, accessory dwelling unit, driveway, and garage in which part of that construction shall be over an abandoned oil well.

Action: Approved the recommendations; (January 14, 2025, report from the City Attorney).

23. Subject: Authorization to Amend the Legal Services Agreement with Best, Best & Krieger, LLP [Agreement] (540.01)
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 $135,000 to $250,000 for special counsel services related to investigation of groundwater and communication with the Regional Water Quality Control Board regarding the same.

Action: Approved the recommendations; Agreement No. 28,022.2 (January 14, 2025, report from the City Attorney).

24. Subject: Agreement with the County of Santa Barbara for Mental Health Mobile Crisis Services [Agreement] (520.04)
Recommendation: That Council approve and authorize the City Administrator to execute a two-year service agreement with the County of Santa Barbara for Mental Health Mobile Crisis Services beginning July 1, 2024, and ending June 30, 2026, with annual fees not to exceed $138,080 in Fiscal Year 2025, and $140,031 in Fiscal Year 2026.

Action: Approved the recommendations; Agreement No. 28,605 (January 14, 2025, report from the Police Chief).

25. Subject: General Plan Amendment to Update the Open Space Element (650.06)
Recommendation: That Council initiate a General Plan Amendment to update the Open Space Element of the City’s General Plan in accordance with Government Code §65565.5.

Action: Approved the recommendations; (January 14, 2025, report from the Community Development Department).

GENERAL PUBLIC COMMENT
Members of the Public: Phyliss Rose Cohen; Jacqueline Inda; Karen McFadden; Kenneth Loch; Jerardo Menchaca Pastor; Chelsea Rifkin; Denice Spangler Adams; Mary Ellen Brooks.
01/14/2025 Santa Barbara City Council Minutes Page 9 of 12

PULLED CONSENT ITEMS

5. Subject: Introduction of Ordinance for Water Metering Requirements for Affordable Housing Adaptive Reuse Projects [Ordinance Introduction] (660.04)
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending Section 14.08.150 of the Santa Barbara Municipal Code Relating to Water Meters for Certain Residential Uses.

Documents:
- January 14, 2025, report from the Public Works Director. - Proposed Ordinance.

Speakers:
- Staff: Public Works Director Cliff Maurer.
- Members of the Public: Ben Romo.

Motion:

Councilmembers Harmon/Jordan to approve Item 5 and request that staff look into water metering issues as applied to non-deed restricted properties in the context of the adaptive reuse program and return to Council as part of the adaptive reuse discussion or earlier.

Vote:

Unanimous roll call vote (Absent: Councilmember Sneddon) 01/14/2025 Santa Barbara City Council Minutes Page 10 of 12

18. Subject: Fiscal Year 2025 Agreement with People Assisting the Homeless (PATH) for Operation of a Homeless Shelter and Related Services [Agreement] (660.01)
Recommendation: That Council authorize the Community Development Director to execute a funding agreement in the amount of $202,100 with People Assisting the Homeless (PATH) for the operation of a homeless shelter and related services.

Documents:
- January 14, 2025, report from the Community Development Director.

Speakers:
- Members of the public: Liz Adams; Jett Black-Maertz.

Motion:

Councilmembers Friedman/Santamaria to approve the recommended action; Agreement No. 28,602.

Vote:

Unanimous roll call vote (Absent: Councilmember Sneddon).

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

QUASI-JUDICIAL HEARING RULES APPLY TO THE FOLLOWING AGENDA ITEM

PUBLIC HEARING

26. Subject: Appeal of the Parks and Recreation Commission’s Action to Change the Street Tree Species Designation for the 300 – 800 blocks of East Anapamu Street to Quercus agrifolia, Coast Live Oak (570.08) Recommendation: That Council:

A. Deny the appeal filed by Mr. Richard Closson, Ms. Cheri Rae, and Ms.

Emma Brinkman, and uphold the Street Tree Advisory Committee’s recommendation and the Parks and Recreation Commission’s action to change the street tree species designation for the 300 – 800 blocks of East Anapamu Street to Quercus agrifolia, coast live oak; and B. Direct staff to return to Council with a Resolution reflecting the findings and outcome of the appeal.

Public hearing opened at 3:03 p.m.

No ex parte communications were disclosed.
01/14/2025 Santa Barbara City Council Minutes Page 11 of 12 Documents:
- January 14, 2025, report from the Parks and Recreation Director - January 3, 2025, letter from Bruce Reed
Speakers:
- Staff: Parks and Recreation Director Jill Zachary, Street Tree Supervisor Nathan Slack, Deputy City Attorney Heather Minter.

Assistant City Attorney Tava Ostrenger.
- Appellant: Richard Closson.
- Applicant: Parks and Recreation Chair Kathy McGill; Street Tree Commission Member Duke McPherson.
- Members of the public: Monie de Wit; Mickey Cornish; Steve Dowty; John McKinney; Gretchen Murray; Jose Arturo Gallegos; Fred Sweeney; Anthony Grumbine; Betsy Cramer; Christine Neuhauser; Cassandra Ensberg; Rose Wills; Michael Marzella; Lisa Ballentine
RECESS
5:00 p.m. – 5:15 p.m.

Public Hearing closed at 5:10 p.m.

Motion:

Councilmembers Harmon / Friedman to uphold the appeal and direct staff to return to City Council with a Resolution to maintain the existing designation and canopy of stone pine trees.

Vote:

Unanimous roll call vote (Absent: Councilmember Sneddon).

COUNCIL AND STAFF COMMUNICATIONS
City Administrator McAdoo briefed on fire activities.

COUNCILMEMBER ENGAGEMENTS
- Councilmember Friedman attended the following meetings or events: 1. CCRB Board meeting.

PUBLIC COMMENT (IF NECESSARY)
Members of the Public: Marny Randall; Erin Parks.
01/14/2025 Santa Barbara City Council Minutes Page 12 of 12

ADJOURNMENT
Mayor Rowse adjourned the meeting at 5:56 p.m.

Approved and adopted by the City Council of the City of Santa Barbara on February 11, 2025.

SANTA BARBARA CITY COUNCIL SANTA BARBARA

CITY CLERK'S OFFICE
_______________________________ ATTEST: ______________________________

RANDY ROWSE SARAH GORMAN

MAYOR CITY CLERK SERVICES MANAGER
01/28/2025 Santa Barbara City Council Minutes Page 1 of 8

CITY OF SANTA BARBARA

CITY COUNCIL MINUTES

REGULAR MEETING
JANUARY 28, 2025
COUNCIL CHAMBERS, 735 ANACAPA STREET

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

PLEDGE OF ALLEGIANCE
Mayor Rowse.

ROLL CALL
Councilmembers present: Eric Friedman, Oscar Gutierrez, Meagan Harmon, Mike Jordan, Wendy Santamaria, 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.

CEREMONIAL ITEMS

1. Subject: 211 Community Celebration Month February 2025 (120.04) Action: Mayor Rowse presented a Proclamation to Patricial Keelan of CommUnify.

CHANGES TO THE AGENDA
City Administrator Kelly McAdoo requested Item 13 to be heard at 4:00 p.m. 01/28/2025 Santa Barbara City Council Minutes Page 2 of 8 CONSENT CALENDAR (Item Nos. 2 – 9)
The titles of the ordinances and resolutions related to the Consent Calendar were read.

Motion:

Councilmembers Friedman/Sneddon to approve the Consent Calendar as recommended.

Vote:

Unanimous roll call vote.

2. Subject: Adoption of Ordinance for Water Metering Requirements for Affordable Housing Adaptive Reuse Projects, and Other Title 14 Revisions [Ordinance Adoption] (660.04)
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending Chapter 14.08.150 of the Santa Barbara Municipal Code Relating to Water Meters for Certain Residential Uses Action: Approved the recommendation; Ordinance No. 6169.

3. Subject: Adoption of Ordinance Authorizing a Utility Easement to Southern California Edison for the Installation of Electric Vehicle Charging Facilities at the Depot Lot at 1 West Montecito Street [Ordinance Adoption] (330.03) Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Public Works Director to Execute a Public Utility Easement Deed to Southern California Edison on City Property Located at the Depot Lot.

Action: Approved the recommendation; Ordinance No. 6168. 01/28/2025 Santa Barbara City Council Minutes Page 3 of 8

4. Subject: Resolution Approving the 2024-2026 Management Salary Plan, and Amendment of Resolution No. 25-001, the Position and Salary Control Resolution for Fiscal Year 2025 [Resolution] (440.02)
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 Salary Plan Applicable to Unrepresented Managers and Professional Attorneys, and the 2024-2026 Salary Plan Applicable to Certain Unrepresented Safety Managers Effective January 11, 2025; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-001, the Position and Salary Control Resolution for Fiscal Year 2025, Affecting Certain Management Classifications Effective January 11, 2025.

Action: Approved the recommendations; Resolution Nos. 25-011, 25-012; (January 28, 2025, report from the Human Resources Director; proposed Resolutions).

5. Subject: Fiscal Year 2025 Interim Financial Statements for the Five Months Ended November 30, 2024 (250.02)
Recommendation: That Council accepts the Fiscal Year 2025 Interim Financial Statements for the five months ended November 30, 2024.

Action: Approved the recommendation; (January 28, 2025, report from the Finance Director).

6. Subject: Hilda McIntyre Ray Park Resident Caretaker [Agreement] (570.05) Recommendation: That Council authorize the Parks and Recreation Director to execute a Caretaker Rental Agreement for Hilda McIntyre Ray Park with Juan Garcia, commencing February 1, 2025, through January 31, 2026.

Action: Approved the recommendation; Agreement No. 28,606 (January 28, 2025, report from the Parks and Recreation Director).
01/28/2025 Santa Barbara City Council Minutes Page 4 of 8

7. Subject: Award of Contract for Business Case Analysis for the Sewer Lateral Inspection Program (SLIP) [Agreement] (540.13)
Recommendation: That Council authorize the Public Works Director to execute a City Professional Services Agreement with GHD Inc., in the amount of $104,927 for professional services for the SLIP Business Case Analysis Project and authorize $10,492 for potential extra services, for a total expenditure authority of $115,419.

Action: Approved the recommendation; Agreement No. 28,607 (January 28, 2025, report from the Public Works Director).

8. Subject: Increase in Professional Services Agreement No. 26,871 with Data Ticket, Inc. for Electronic Parking Citation Services [Agreement] (520.04) Recommendation: That Council authorize the execution of a one-year contract extension of the established Professional Service Agreement No. 26,871 with Data Ticket, Inc., and increase the agreement by $150,000 in FY 2025 and by $150,000 in FY 2026 for electronic parking citation services. This amendment will bring the total five-year agreement value to $1,271,000.

Action: Approved the recommendation; Agreement No. 26,871.3 (January 28, 2025, report from the Police Chief).

9. Subject: December 2024 Investment Report (260.02)
Recommendation: That Council accept the December 2024 Investment Report.

Action: Approved the recommendation; (January 28, 2025, report from the Finance Director).

REPORT FROM THE ORDINANCE COMMITTEE
Ordinance Committee Chair Sneddon reported that the Committee met to discuss consider proposed amendments to Santa Barbara Municipal Code Title 9 and forward to the City Council for introduction and adoption, an Ordinance of the Council of the City of Santa Barbara Amending Section 9.48.010 of the Santa Barbara Municipal Code to Establish Time, Place, and Manner Restrictions on Vending from Vehicles.

GENERAL PUBLIC COMMENT
Members of the Public: Autry Liggett; Steve Serboff; Jacqueline Inda; Peggy Nicholson; Declan Clause; Summer Howatt; Stephen Queener; Sandy Hawtrey; Allie Rigonati; Max Golding; Laura Stephens; Veronica Strauss; Beau Rainbolt; Renny Strong; Connor McGinley; Jennifer Hernandez; Corina Svacina; Mike Aracic; Lisa Haworth; Angeliza Sanchez; Zoila Cabrera; Amber Asher
01/28/2025 Santa Barbara City Council Minutes Page 5 of 8

PULLED CONSENT ITEMS
None.

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS
- Councilmember Friedman attended the following meetings or events: 1. Airport Commission; 2. Central Coast Water Authority ; 3. League of Cities Coastal Cities group.
- Councimember Gutierrez attended the following meetings or events: 1. Police and Fire Commission meeting.
- Councilmember Sneddon attended the following meetings or events: 1. COMB meeting.

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

LIBRARY DEPARTMENT

10. Subject: Presentation from Santa Barbara County Office of Arts & Culture (150.04)
Recommendation: That Council receive a presentation from the Santa Barbara County Office of Arts & Culture.

Documents:
- January 28, 2025, report from the City Administrator. - PowerPoint presentation prepared and made by Santa Barbara County Office of Arts and Culture staff.

Speakers:
- Staff: Interim Library Director Brandon Beaudette.
- Santa Barbara County Office of Arts & Culture: Executive Director Sarah York-Rubin.
- Member of the Public: Andrew Thill.

Discussion:
- The Santa Barbara County Office of Arts & Culture made a presentation about the accomplishments of the office, including specific arts agreements and grant recipients. Councilmembers’ questions were answered. 01/28/2025 Santa Barbara City Council Minutes Page 6 of 8

FINANCE DEPARTMENT

11. Subject: City Council Prioritization of Revenue Generated by Measure I Transaction and Use Tax to Maintain Essential Local Services (270.06) Recommendation: That Council provide direction to staff regarding the expenditure of revenue from the Santa Barbara Essential Local Services Measure I, approved by voters in November 2024.

Documents:
- January 28, 2025, report from the City Administrator. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: Finance Director Keith De Martini; Housing and Human Services Program Manager Laura Dubbels.
- Members of the Public: Rich Appelbaum; Laurence Saverance; Whitney Rubison; Margaret Crocco Emiliano Camposbello; Stephen Queener; Angeliza Sanerez; Zoila Cabrera; Kristen Miller; Jessica Wishan de L’Arbre; Zac Smith; Laura Robinson; Leonardo Decasaus; Rob Fredericks; Robin Elander; Gina Quiroz
Discussion:
- Councilmembers’ questions were answered.

RECESS
4:43 – 5:11 p.m.

MAYOR AND COUNCIL REPORTS

13. Subject: Fire and Police Commission Applicant Interviews (140.05) Recommendation: That Council interview applicants who applied for appointment to the Fire and Police Commission.

Documents:
- January 28, 2025, report from the City Administrator’s Office.

The following applicants were interviewed:

Fire and Police Commission
Andy Barrar
Alberto Lapuz
01/28/2025 Santa Barbara City Council Minutes Page 7 of 8

PUBLIC WORKS DEPARTMENT

12. Subject: Update on State Street Action Plan (530.04) Recommendation: That Council receive a progress report on the Short-Term Action Plan for the State Street Master Plan project area.

Documents:
- January 28, 2025, report from the Public Works Director. - PowerPoint presentation prepared and made by staff.

Speakers:
- Staff: Downtown Team Manager Sarah Clark; State Street Master Planner Tess Harris
- Access Advisory Committee: James Marston
- Members of the public: Marilyn Loperfido; Robin Elander; Lyn Krieger Molly Pearson; Ron Roberston; Barry Remis; Sharon Luckett; Sharon Rich.

Discussion:
- Councilmembers’ questions were answered.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER ENGAGEMENTS
- Councilmember Friedman attended the following meetings or events: 1. Coastal Commission local government working group; 2. Blue Economy summit; 3. De La Guerra portion of MLK Day.
- Councimember Gutierrez attended the following meetings or events: 1. Das Wiliams’ retirement party; 2. Food and Beverage Committee meeting; 3. Boys and Girls Club event; 4. People’s March; 5. Sisters Cities Miraflores meeting; 6. MLK Day March and Event; 7. Fire and Police Commission Meeting; 8. Mission’s Candlelight Mass; 9.

Planned Parenthood fundraiser; 10. La Casa meeting.
- Councilmember Harmon attended the following meetings or events: 1. - Councilmember Jordan attended the following meetings or events: 1. - Councilmember Santamaria attended the following meetings or events: 1. Met with Eastside business owners; 2. MLK march and program; 3. SBCAN monthly roundtable;

4. La Casa de la Raza event.
- Councilmember Sneddon attended the following meetings or events: 1. Upward Mobility Summit; 2. MLK program and march; 3. Habitat for Humanity tribute to Jimmy Carter;

4. Trust for Historic Preservation awards.
- Mayor Rowse attended the following meetings or events: 1. Yesterday was Holocaust Recognition day.
01/28/2025 Santa Barbara City Council Minutes Page 8 of 8

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

ADJOURNMENT
Mayor Rowse adjourned the meeting at 7:44 p.m. in the memory of Erin Graffy.

Approved and adopted by the City Council of the City of Santa Barbara on February 11, 2025.

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: February 11, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Contract Amendment for Construction Management Extra Services for the Santa Barbara Police Station Project [Agreement] RECOMMENDATION:

That Council authorize the Public Works Director to execute the First Contract Amendment with TynanGroup, Inc. for an increase in its Construction Management Services to include Furniture, Fixture, and Equipment coordination services for the Santa Barbara Police Station Project, Contract No. 28,524, in the amount of $98,050, for a total expenditure authority of $2,569,620.

DISCUSSION:

Background
The Santa Barbara Police Station Project (Project) was awarded to ProWest Constructors as the General Contractor, and TynanGroup was contracted to provide the City with construction management services. With the construction phase underway, it is necessary to begin the coordination process with the Police Department and vendors for the Furniture, Fixture, and Equipment (FF&E) in order to ensure timing and expectations are met.

Due to the size of the Project, the role requires the assistance of a third party. TynanGroup has the expertise and experience to meet the expectations to coordinate with the end users, design team, and vendors. The added services will ensure that the designs are implemented, decisions are made in a timely manner, selections and orders are confirmed, and onsite management and coordination of installation is provided.

Current Status
The Project is very early in the construction phase. The FF&E coordination services for a project of this size requires a dedicated resource for coordination, procurement, scheduling, delivery, and installation. TynanGroup will be intimately involved in all phases of construction as the Construction Manager. In addition to their proposal being the best value for the City for both price and services, the overlapping details within the Agenda Item No. 2
File Code No. 520.04
Council Agenda Report
Contract Amendment for Construction Management Extra Services for the Santa Barbara Police Station Project [Agreement]
February 11, 2025

construction schedule will help ensure that all aspects of this portion of the Project will be handled.

A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

BUDGET/FINANCIAL INFORMATION:

Funding
The following summarizes all added coordination costs and other Project costs relating to the FF&E scope of work for this Amendment.

ESTIMATED TOTAL CONSTRUCTION MANAGEMENT COST INCREASE
*Cents have been rounded to the nearest dollar in this table.

Construction Management Contract (TynanGroup) $2,471,570 Existing Construction Change Order Allowance $247,157
Construction Management Subtotal $2,718,727
FF&E Coordination Services During Construction Contract $98,050 Extra FF&E Services Allowance $9,805
FF&E Coordination Subtotal $107,855
TOTAL CONSTRUCTION MANAGEMENT COST $2,826,582
If the recommendation is approved, the total Construction Management Services contract expenditure authority, including all allowances, will be increased to $2,826,582.

The costs for the Construction Management Services, as well as the total cost of construction, are to be paid for primarily from bond proceeds, of which $98M is for the Police Station Project. Future appropriations from Measure C as needed, will cover all remaining Project costs.

SUSTAINABILITY IMPACT:

The new Zero Net Energy (ZNE) police station will result in a large reduction of the building’s carbon footprint and energy consumption as compared to a conventional building and the current facilities. As a ZNE facility, the police station will generate as much energy as it consumes through renewable energy sources like solar power, supporting the City’s commitment to carbon neutrality. This initiative meets the City’s Municipal Green Building Policy and reflects Santa Barbara’s broader goals of enhancing energy efficiency, reducing greenhouse gas emissions, and promoting environmental Council Agenda Report
Contract Amendment for Construction Management Extra Services for the Santa Barbara Police Station Project [Agreement]
February 11, 2025

stewardship. Additionally, the station’s sustainable design and operational practices set a standard for future municipal projects, demonstrating leadership in creating resilient, energy-efficient infrastructure while enhancing public safety.

ENVIRONMENTAL REVIEW:

The City of Santa Barbara’s Public Works Department prepared a Mitigated Negative Declaration (MND) that examines environmental impacts as required per the California Environmental Quality Act (CEQA) of the Project. The MND has been prepared in accordance with CEQA (Public Resources Code §21000 et seq.) and the State CEQA Guidelines (Title 14, California Code of Regulations, §15000 et seq.). Significant environmental effects identified in the MND which are anticipated as a result of the Project include impacts related to the following CEQA analysis of Air Quality, Biological Resources, Cultural and Tribal Resources, Geology and Soils, Hazards and Hazardous Materials, Land Use and Planning, Noise, and Water Quality and Hydrology. The MND includes proposed mitigation measures to mitigate potentially significant impacts to a less than significant level. Based on the mitigation measures identified in the MND, it has been determined that the Project will not have a significant effect on the environment after mitigation measures are incorporated. The MND was adopted on July 19, 2022, by City Council.

PREPARED BY: Brian D’Amour, P.E., City Engineer/BH/sk
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: February 11, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Professional Planning Services for the Vic Trace Reservoir Replacement Project [Agreement]
RECOMMENDATION:

That Council authorize the Public Works Director to execute a City Professional Services Agreement with Confluence Land Use LLC, in the amount of $200,640 for professional planning services for the Vic Trace Reservoir Replacement Project and authorize $20,064 for potential extra services, for a total expenditure authority of $220,704.

DISCUSSION:

Background
The Vic Trace Reservoir is located at 740 Dolores Drive in the City of Santa Barbara’s (City) Alta Mesa neighborhood. The facility was constructed in 1956 as a partially buried, 10-million-gallon concrete reservoir used for treated drinking water storage. The City identified the Vic Trace Reservoir Replacement Project (Project) as critical in its Water Distribution Infrastructure Plan, which provides strategic guidance and practical recommendations to address the City’s water distribution and water supply needs through the Planning Year 2050. As the City’s largest reservoir, Vic Trace was recommended for replacement due to its age, increasing repair needs, and importance to the City’s overall water storage portfolio.

Project Description
The Project will design and construct two new buried reservoirs totaling the same existing storage capacity and evaluate and replace nearby hydraulically connected pipelines, valves, and pump stations. Due to the Project’s large scale, the City has engaged with Confluence Land Use LLC (Confluence), a professional planning consultant, to help guide the Project through the City’s design, environmental review, and permitting process.

Confluence will provide professional planning services by acting as the case planner through the City’s Community Development Department and will facilitate processing of the Project’s planning application.

Agenda Item No. 3
File Code No. 540.01
Council Agenda Report
Professional Planning Services for the Vic Trace Reservoir Replacement Project [Agreement]
February 11, 2025

Current Status
The Project is nearing the end of the planning phase and preparing to transition into the design phase. Award of design is expected in spring 2025 with design work expected to take up to three years to complete. Demolition of the existing reservoir and construction of the new buried reservoirs is anticipated to take place over a two-year period.

Public Outreach
There is a comprehensive Strategic Communication Plan for public outreach for this Project. The Plan identifies stakeholders, sets Project messaging, and outlines specific methods of community engagement through each phase of the Project. The first public meetings are scheduled to begin by summer 2025.

Professional Planning Services
Staff recommends that Council authorize the Public Works Director to execute a contract with Confluence in the amount of $200,640 for professional planning services for the Vic Trace Reservoir Replacement Project, and authorize $20,064 for potential extra services, for a total expenditure authority of $220,704. Confluence is experienced in this type of work and was selected as part of a competitive Request for Proposals process. They were the most qualified of a total of three firms that submitted proposals. The selection was made based on Confluence’s qualifications to perform the full scope of professional planning services for successful delivery of the Project’s design and environmental review.

BUDGET/FINANCIAL INFORMATION:

There are sufficient expenditure appropriations in the Water Capital Fund in Fiscal Year 2025 to cover the costs of the proposed agreement for professional planning services for the Project, including potential extra services, and City staff costs. The City anticipates applying for a Drinking Water State Revolving Fund loan from the California Water Resources Control Board to fund the total Project cost, including planning and outreach services, environmental documentation, design, and construction.

A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

ENVIRONMENTAL REVIEW:

This Project requires California Environmental Quality Act (CEQA) compliance and permitting. A contract with Rincon Consultants Inc., (Rincon) for the first phase in the Project’s initial CEQA documentation process was awarded on June 13, 2023. Phase 1 environmental documentation was completed in October 2023. Phase 2 environmental analysis and documentation will be conducted under Rincon’s contract awarded May 14, Council Agenda Report
Professional Planning Services for the Vic Trace Reservoir Replacement Project [Agreement]
February 11, 2025

2024. The Project’s required environmental documentation and permits will be secured prior to the commencement of construction.

WATER COMMISSION RECOMMENDATION:

This item was presented to the Water Commission at its meeting on January 16, 2025, and the Commission voted 4-0-1 in support of staff’s recommendations.

ATTACHMENT: Project Location Map
PREPARED BY: Brian D’Amour, P.E., City Engineer/PM/rl
SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: Kelly McAdoo, City Administrator
Project Location Map
Vic Trace Reservoir: 740 Dolores Drive (15 acres)
Vic Trace
Reservoir
Property

ATTACHMENT

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 11, 2025
TO: Mayor and Councilmembers
FROM: Parks and Recreation Department
SUBJECT: Contract Amendment with RRM Design Group for the Chase Palm Park Arbor Project [Agreement]
RECOMMENDATION:

That Council authorize the Parks and Recreation Director to execute a second amendment to contract #26,919 with RRM Design Group in the amount of $30,800 for design services and construction administration for the Chase Palm Park Arbor Project, for a new total contract amount of $155,354.

DISCUSSION:

Project Description
The Chase Palm Park Arbor Project will redesign the patio adjacent to Casa Las Palmas to achieve integration of a new arbor/pergola structure, accessibility upgrades, renovation of the snack bar building, new fencing, lighting, and landscaping upgrades. The accessibility improvements will provide access to and around the patio of Casa Las Palmas, as well as the adjacent public restroom and small parking area. The addition of the arbor/pergola structure will greatly enhance outdoor activities on the existing patio by providing shade.

Project Status
In early fall of 2024, the City authorized a construction contract with Quincon Inc. in the amount of $1,199,524. Construction started in late fall of 2024 and is approximately 50% complete.

Contract Amendment
On May 25, 2021, Council authorized a professional services agreement with RRM Design Group in the amount of $101,419 to provide architectural design services for the Project. On September 12, 2023, Council authorized the first contract amendment for Agenda Item No. 4
File Code No. 570.05
Council Agenda Report
Contract Amendment with RRM Design for the Chase Palm Park Arbor Project [Agreement] Febuary 11, 2025

additional design services and construction administration support in the amount of $23,125, which increased the total contract amount to $124,544.

The purpose of the second contract amendment is to expand the scope of work to include additional design and construction administration services and allow for a new completion date of July 1, 2025, due to unforeseen site conditions. The main intake pipe for Santa Barbara City’s Desalination Plant was discovered in a different location than mapped. A permit revision is required to provide a structural solution to bridge the 42-inch diameter concrete pipe. The contract increase is for $30,800, which brings the total contract amount to $155,354.

BUDGET/FINANCIAL INFORMATION:

There are sufficient expenditure appropriations in Fiscal Year 2025 Capital Program Fund to cover the cost of the contract amendment.

SUSTAINABILITY IMPACT:

The Project will further the City’s sustainability goals through incorporating environmentally responsible design and construction techniques, as well as upgrading accessibility at this City facility.

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

PREPARED BY: Justin Van Mullem, Capital Projects Supervisor SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 11, 2025
TO: Mayor and Councilmembers
FROM: Waterfront Department
SUBJECT: Proposed Sole Source Purchase Order with SkiData, Inc. for Annual Maintenance Agreement, Payment Processing, and Replacement Parts
RECOMMENDATION:

That Council find it in the City’s best interest to waive the formal bid procedure as authorized by Municipal Code Section 4.52.070 (K), and authorize the sole source purchase, in an amount not-to-exceed $360,000 to Skidata, Inc., for parking related Annual Maintenance Services, Payment Processing, and Replacement Parts for a 4-year period.

DISCUSSION:

The Waterfront Department operates eight parking lots with a total of approximately 2,580 parking stalls. Two of the parking lots, Stearns Wharf and Harbor Main, are staffed and use revenue control/point of sale systems that operate with ticket dispensers, and entry and exit gate arms. The Harbor Main parking lot is staffed twenty-four hours a day, 365 days a year. Stearns Wharf is staffed daily, year-round.

BACKGROUND:

In Fiscal Year (FY) 2024. the Waterfront Department installed over $182,000 of SKIDATA parking equipment at the Harbor Main parking lot kiosks and the Stearns Wharf kiosk.

Both parking lots feature one entry lane and one exit lane. Any equipment failure at any time of the day creates significant problems for parking operations, negatively impacts the public with delayed entry and exit, and reflects poorly on the Waterfront Department.

Extending the current maintenance contract will ensure that Waterfront Parking’s hardware is properly supported.

SKIDATA Inc. is the only certified distributor and installer of SKIDATA equipment and is the only company authorized to work on SKIDATA products for warranty purposes.

SKIDATA Inc. is located in the San Fernando Valley and is able to provide consistent, ongoing equipment maintenance and repair, and is able to respond to urgent calls within hours. In addition, having Downtown Parking and the Waterfront on the same parking Agenda Item No. 5
File Code No. 570.03
Council Agenda Report
Proposed Sole Source Purchase Order with SkiData, Inc. for Annual Maintenance Agreement, Payment Processing, and Replacement Parts
February 11, 2025

revenue control systems allows for the exchange of information, training, and best practices, as well as reduced maintenance agreement costs BUDGET/FINANCIAL INFORMATION:

Sufficient funds for the extended warranty and services agreement have been budgeted in the Waterfront Parking Services fund for FY 2025 and have been planned for in Fiscal Years 2026, 2027, and 2028.

PREPARED BY: Cesar Barrios, Waterfront Business Manager SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 11, 2025
TO: Mayor and Councilmembers
FROM: Community Development Department
SUBJECT: TEFRA (Tax Equity And Fiscal Responsibility Act) Hearing for Colorado Health Facilities Authority Revenue Bonds Issuance [Resolution]
RECOMMENDATION: That Council:

A. Open a TEFRA public hearing, accept public comment, and close the TEFRA public hearing regarding the issuance of revenue bonds by the Colorado Health Facilities Authority (“Authority”), in an aggregate principal amount not to exceed $180,000,000, a portion of which, in a principal amount not to exceed $5,000,000, will be used for the benefit of Covenant Living at the Samarkand, located at 2550 Treasure Drive; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Approving the Issuance of Revenue Bonds to Be Issued by the Colorado Health Facilities Authority, in an Aggregate Principal Amount Not to Exceed $180,000,000, a Portion of Which, in a Principal Amount Not to Exceed $5,000,000, Will Be Used to Finance the Construction, Renovation, Remodeling, and/or Equipping of Certain Facilities Owned and/or Operated by Covenant Living Communities and Services (f/k/a Covenant Retirement Communities, Inc.) and/or One of Its Affiliates, Covenant Living West (d/b/a Covenant Living at the Samarkand), Located in the City of Santa Barbara, California, and Certain Other Matters Relating Thereto.

DISCUSSION:

Covenant Living Communities and Services (f/k/a Covenant Retirement Communities, Inc.), an Illinois not for profit corporation (the “Corporation”), has requested that the Colorado Health Facilities Authority (the “Authority”), an independent public body politic and corporate and a public instrumentality of the State of Colorado, created under the provisions of the Colorado Health Facilities Authority Act, Colorado Revised Statutes, Agenda Item No. 6
File Code No. 660.01
Council Agenda Report
TEFRA (Tax Equity And Fiscal Responsibility Act) Hearing for Colorado Health Facilities Authority Revenue Bonds Issuance [Resolution]
February 11, 2025

Title 25, Article 25, as amended, and Title 11, Article 57, Part 2, as amended (the “Act”), issue revenue bonds in the maximum principal amount of $180,000,000 (the “Bonds”).

A portion of the proceeds of the Bonds, together with certain other moneys, will be used to: (i) in a principal amount not exceeding $5,000,000, pay or reimburse the Corporation and/or, one of its affiliates, Covenant Living West (d/b/a Covenant Living at the Samarkand) (“CLC West”), for the costs of constructing, renovating, remodeling and/or equipping certain facilities of the Corporation and/or CLC West, including the renovation of the dining areas in the skilled nursing and assisted living facilities at the Covenant Living at the Samarkand campus, located in the City of Santa Barbara, California (the “Project”); (ii) fund a debt service reserve fund, if deemed necessary or desirable by the Authority and/or the Corporation; (iii) pay a portion of the interest on the Bonds, if deemed necessary or desirable by the Authority and/or the Corporation; (iv) provide working capital, if deemed necessary or desirable by the Authority and/or the Corporation; and (v) pay certain expenses incurred in connection with the issuance of the Bonds.

Under federal law, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the governing body of any local entity within which Bond proceeds are to be spent must:
(1) conduct a public hearing and (2) approve by resolution the issuance of the Bonds.

Therefore, because a portion of the Bonds will benefit the Project, which is located within the City of Santa Barbara, California (the “City”), the City is required to hold a public hearing to allow public comment on the issuance of the Bonds for the Project, and the City Council must adopt a resolution approving the Bond issuance. This Council has held numerous similar such TEFRA hearings for other projects and has adopted numerous similar TEFRA resolutions.

It is important to understand that the City’s only role is to hold the public hearing and adopt the associated resolution for purposes of federal Internal Revenue Service compliance. The City is not the bond issuer and has no obligation for debt service payments on the Bonds or administrative costs relating to the issuance of the Bonds by the Authority. In addition, holding a public hearing and adopting a resolution in no way prevents the City from exercising its discretion over any other Project-related approvals.

Staff recommends that the City Council adopt the resolution approving the issuance of bonds by the Authority to finance the Project described above.

BUDGET/FINANCIAL INFORMATION:

There is no financial impact to the City from the approval of the issuance of the Bonds.

The City is in no way associated with the debt issuance and is not obligated to make debt service payments on the Bonds. In addition, adopting resolutions in no way makes the City a party to the debt issuance. The Authority will act as issuer and perform all the necessary legal and administrative responsibilities associated with the financing. The Bonds are special, limited obligations of the Authority payable solely through the repayment of the loan by the Corporation, which repayment is used to pay the principal Council Agenda Report
TEFRA (Tax Equity And Fiscal Responsibility Act) Hearing for Colorado Health Facilities Authority Revenue Bonds Issuance [Resolution]
February 11, 2025

of and interest on the Bonds. The Bonds issued by the Authority are not an obligation of the City or the State of California. Neither the faith or credit, nor the taxing power of the City, the State or any political subdivision thereof is pledged to the repayment of the Bonds.

PREPARED BY: Laura Dubbels, Housing and Human Services Manager SUBMITTED BY: Elias Isaacson, Community Development Director APPROVED BY: Kelly McAdoo, City Administrator
RESOLUTION NO. _________

RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA BARBARA

APPROVING THE ISSUANCE OF REVENUE BONDS TO BE ISSUED BY

THE COLORADO HEALTH FACILITIES AUTHORITY, IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $180,000,000, A

PORTION OF WHICH, IN A PRINCIPAL AMOUNT NOT TO EXCEED
$5,000,000, WILL BE USED TO FINANCE THE CONSTRUCTION,

RENOVATION, REMODELING, AND/OR EQUIPPING OF CERTAIN

FACILITIES OWNED AND/OR OPERATED BY COVENANT LIVING

COMMUNITIES AND SERVICES (F/K/A COVENANT RETIREMENT
COMMUNITIES, INC.) AND/OR ONE OF ITS AFFILIATES, COVENANT

LIVING WEST (D/B/A COVENANT LIVING AT THE SAMARKAND),

LOCATED IN THE CITY OF SANTA BARBARA, CALIFORNIA, AND

CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Covenant Living Communities and Services (f/k/a Covenant Retirement Communities, Inc.), an Illinois not for profit corporation (the “Corporation”), has requested that the Colorado Health Facilities Authority (the “Authority”) issue bonds in one or more series in an aggregate principal amount not to exceed $180,000,000 (the “Bonds”) pursuant to Colorado Revised Statutes, Title 25, Article 25, as amended, and Title 11, Article 57, Part 2, as amended; and
WHEREAS, a portion of the proceeds of the Bonds, together with certain other moneys, will be used to: (i) in a principal amount not exceeding $5,000,000, pay or reimburse the Corporation and/or, one of its affiliates, Covenant Living West (d/b/a Covenant Living at the Samarkand) (“CLC West”), for the costs of constructing, renovating, remodeling and/or equipping certain facilities of the Corporation and/or CLC West, including the renovation of the dining areas in the skilled nursing and assisted living facilities at the Covenant Living at the Samarkand campus, located in the City of Santa Barbara, California (the “Project”); (ii) fund a debt service reserve fund, if deemed necessary or desirable by the Authority and/or the Corporation; (iii) pay a portion of the interest on the Bonds, if deemed necessary or desirable by the Authority and/or the Corporation; (iv) provide working capital, if deemed necessary or desirable by the Authority and/or the Corporation; and (v) pay certain expenses incurred in connection with the issuance of the Bonds; and
WHEREAS, an “applicable elected representative” of the jurisdiction in which the Project is located is required to approve the issuance of the Bonds under Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and
-2-
WHEREAS, the Corporation has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code; and
WHEREAS, the Council understands that its actions in holding the public hearing and in adopting this Resolution do not obligate the City in any manner for payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds, and the Council expressly conditions its approval of the issuance of the Bonds by the Authority by the adoption of this Resolution on this understanding; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council of the City of Santa Barbara has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now the City Council desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Barbara, as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council hereby approves the issuance of the Bonds by the Authority as part of a plan to finance the construction, renovation, remodeling and/or equipping of the Project situated in the City. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority for the Project for the purpose of Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f).

Section 3. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

Section 4. The Council expressly conditions its approval of this Resolution on its understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or other costs associated with the Authority’s issuance of the Bonds.

Section 5. The Clerk shall forward a certified copy of this Resolution to bond counsel for the Authority in care of its counsel:

Latrice Baptiste
Chapman and Cutler LLP
1270 Avenue of the Americas
New York, New York 10020
Section 6. This resolution shall take effect immediately upon its adoption. -3-
PASSED AND ADOPTED by the City Council of the City of Santa Barbara this 11th day of February, 2025.

AYES:

NOES:

ABSTAIN:

ABSENT:
[SEAL]
Attest:

By:____________________________________
City Clerk

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 11, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Public Hearing for the Disestablishment of the Downtown and Old Town Business Improvement Districts Assessments [Ordinance Introduction]
RECOMMENDATION: That Council:

A. Conduct a public hearing regarding the disestablishment of the Downtown and Old Town Business Improvement Areas; and
B. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Replealing Chapters 4.39 and 4.43 of the Santa Barbara Municipal Code and Disestablishing the Downtown Parking and Business Improvement Area and the Old Town Parking and Business Improvement Area.

DISCUSSION:

The Downtown and Old Town Business Business Improvement Areas were established to provided marketing and promotional services for Downtown businesses and have done so for several decades. The merchants in both business improvement areas pay for these services through an assessment based on their business license fee, location, and type of business. The assessment revenue is collcted each year by the City and then remitted to Downtown Santa Barbara pursuant to an agreement for services. The improvement areas are administered under the provisions of the Streets and Highways Code commonly referred to as the Parking and Business Improvement Area Law of 1989 (“1989 Act”). Dowtown Santa Barbara is a 501 (c) 3 organization that operates both improvement areas after merging with the Old Town Merchants Association in 2005.

The Downtown Business Improvement Area serves businesses between Chapala and Anacapa Streets, from Ortega Street north to Micheltorena Street, as authorized under Municipal Code Section 4.39, which regulates Downtown Parking and Business Improvement Area charges. The Old Town Improvement Area serves businesses Agenda Item No. 7
File Code No. 550.01
Council Agenda Report
Public Hearing for the Disestablishment of the Downtown and Old Town Business Improvement Districts Assessments [Ordinance Introduction] February 11, 2025

between Chapala and Anacapa Streets, from Gutierrez Street north to Ortega Street, as authorized under Municipal Code 4.43 with regulates the Old Town Parking and Business Improvement Area charges.

Generally, the Parking and Business Improvement Area Law of 1989 allows the Downtown Organization, acting as the district’s administrator, to provide the following activites through the Business Improvement Districts:
• Promotion of public events which benefit businesses in the area, • Furnishing of music in any public place in the area,
• Promotion of tourism with the area, and
• Activites which benefit businesses located and operating in the area.

At the June 25, 2024 meeting, Council adopted a resolution establishing the Downtown Community Benefit Improvement District (CBID) and levying the assessment in connection with that district. The CBID was established under the Property and Business Improvement District Law of 1994 and Santa Barbara Municipal Code Chapter 4.45 with the intention of replacing the two business improvement areas. The CBID allows property owners to fund special services through a special benefits assessment on their properties.

Some of these special services are duplicative to those of the Downtown and Old Town BIAs. Therefore it is no longer appropriate to levy assessments on the business under the 1989 Act and dissolution of the older BIAs is necessary at this time.

On January 14, 2025, Council adopted a resolution declaring its intention to disestablish the business improvement areas and set the date for a public hearing on February 11, 2025. Notices for disestablishment of the assessment were published as required by law and also mailed to all affected businesses in the districts, informing businesses of the public hearing.

BUDGET/FINANCIAL INFORMATION:

All business assessments collected within the business improvement areas have been spent for their intended purposes and there are no remaining revenues derived from the levy of assessments within those areas.

The newly formed Downtown Santa Barbara Business Improvement Association, acting as the third party administrator for the CBID funds is projected to receive approximately $2,200,000 in annual assessments for it’s first year.

PREPARED AND
SUBMITTED BY: Brandon Beaudette, Senior Assistant to the City Administrator APPROVED BY: Kelly McAdoo, City Administrator
ORDINANCE NO.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF
SANTA BARBARA REPEALING CHAPTERS 4.39 AND 4.43 OF

THE SANTA BARBARA MUNICIPAL CODE AND

DISESTABLISHING THE DOWNTOWN PARKING AND

BUSINESS IMPROVEMENT AREA AND THE OLD TOWN

PARKING AND BUSINESS IMPROVEMENT AREA
WHEREAS, the Downtown Parking and Business Improvement Area and the Old Town Parking and Business Improvement Area (PBIAs) were formed under Santa Barbara Municipal Code Chapters 4.39 and 4.43, respectively, to provide marketing and promotional services to area businesses;
WHEREAS, the purpose of the PBIAs has been superseded by the establishment in 2024 of the Downtown Community Benefit Improvement District pursuant to Santa Barbara Municipal Code Chapter 4.45. Assessments levied within the Downtown Community Benefit Improvement District will be expended for the purposes established by the approved Management District Plan as determined by the PBID’s Owners’ Association.

WHEREAS, disestablishment of the PBIAs is authorized pursuant to Section 36550 and 36551of the California Streets and Highways Code.

WHEREAS, the City Council adopted a resolution declaring its intention to disestablish the Downtown Parking and Business Improvement Area and the Old Town Parking And Business Improvement Area and held a duly noticed public hearing at the Council’s regularly scheduled meeting of February 11, 2025, to consider disestablishment of the PBIAs pursuant to Streets and Highways Code Sections 36550 and 36551.

WHEREAS, all assessments levied on businesses within and pursuant to the PBIAs have been spent for their intended purposes.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

1. The Downtown Parking and Business Improvement Area is disestablished.

2. Chapter 4.39 of Title 4 of the Santa Barbara Municipal Code is repealed.

3. The Downtown Parking and Business Improvement Area is disestablished.

4. Chapter 4.43 of Title 4 of the Santa Barbara Municipal Code is repealed.