Agenda packet, first session — Santa Barbara City Council, July 29, 2025 (part 2 of 5)

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CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 29, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Advisory Group Guidelines Update [Resolution]
RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-021 to Revise the Advisory Group Guidelines.

DISCUSSION:

City Advisory Groups serve to provide advice to Council on discrete topics of expertise.

There are over forty City Advisory Groups, thirty of which the City Council makes appointments to. The City Charter establishes eleven of those Groups. These Guidelines apply to all City Advisory groups except for those that the Council has adopted alternate Guidelines by resolution for specific bodies, such as Planning Commission, Architectural Board of Review, and the Historic Landmarks Commission; and provide consistency for the public, Group members, and City staff.

The Guidelines were last updated on March 12, 2024, and are being updated again to include changes that have been recently requested. Such changes are: clarification of “government employees” that are not allowed to apply nor serve on any City Advisory Group; include the option for City Council to make changes to the applicant interview process; and updating information regarding the Statement of Economic Interests requirement to include updates made in recent legislation.

Regular review of the Guidelines by staff helps to:
 Ensure the City meets current law and best practices related to Advisory Groups;  Ensure consistency across Advisory Groups;
 Update ad hoc or standing committee processes;
 Update how Group members can request agenda items; and  Clarify processes for Advisory Group liaisons.

Agenda Item No. 6
File Code No. 140.02
Council Agenda Report
Advisory Group Guidelines Update [Resolution]
July 29, 2025

Page 2 ends

BUDGET/FINANCIAL INFORMATION:

This item has no financial or budgetary impact on the City.

ATTACHMENT: Resolution No. 24-021 showing proposed changes PREPARED BY: Norma Welche, Deputy City Clerk
SUBMITTED BY: Sarah Gorman, City Clerk Services Manager APPROVED BY: Kelly McAdoo, City Administrator

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G U I D E L I N E S

FOR THE

CITY OF SANTA BARBARA

ADVISORY GROUPS

APPROVED BY THE CITY COUNCIL
Resolution No. 24-021
Adopted March 12, 2024
Effective March 12, 2024
Prepared by the Santa Barbara City Clerk's Office

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 2

CITY OF SANTA BARBARA ADVISORY GROUPS

BACKGROUND INFORMATION
Section 800 of the City of Santa Barbara Charter authorizes the establishment of City boards and commissions:
"There shall be the following named advisory boards and commissions which shall have the powers and duties herein stated. In addition, the City Council may create by ordinance such additional advisory boards or commissions as in its judgment are required, and may specify the number of members thereof, their terms and manner of appointment, and may grant to them such powers and duties as are consistent with the provisions of this Charter."
Charter Boards and Commissions
Article VIII of the City Charter establishes the following 11 boards and commissions:

Airport Commission
Architectural Board of Review
Civil Service Commissioners, Board of
Fire and Police Commissioners, Board of
Fire and Police Pension Commissioners, Board of
Harbor Commissioners, Board of
Historic Landmarks Commission
Library Board
Parks and Recreation Commission
Planning Commission
Water Commissioners, Board of
Except as provided in the City Charter, all charter board and commission members must be qualified to vote in the City of Santa Barbara.

Article VIII also contains provisions regarding the manner of appointment, removal from office, number and terms of members, meetings, and the powers and duties of each board and commission. These guidelines supplement the recruitment and appointment procedures specified in the City Charter. Those boards and commissions specifically established in the Charter may be eliminated only by amendment to the Charter, which must be approved by the voters.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 3 Other City Council Advisory Groups
All City Council Advisory Groups not specified in the City Charter are established by the City Council by ordinance, resolution, or minute action. Some City Council Advisory Groups are formed for a specific purpose and cease to exist when their goals have been accomplished.

Other Appointments
The City makes appointments to groups created by State law such as: the Housing Authority Commission; the Mosquito and Vector Management District of Santa Barbara County; and the Santa Barbara Metropolitan Transit District Board of Directors. The Housing Authority Commission membership may include two non-City residents. The City also appoints one member to the Central Coast Commission for Senior Citizens.

The Housing Authority Commission, the Mosquito and Vector Management District Board of Santa Barbara County, the Santa Barbara Metropolitan Transit Board, the County Library Advisory Committee, the Golf Advisory Committee, the Integrated Pest Management Advisory Committee, the Arts and Crafts Show Advisory Committee, the Street Tree Advisory, and the Central Coast Commission for Senior Citizens are not advisory to the City Council; and their members may serve on a board, commission, or committee that are advisory to the City Council.

These groups are included in these Guidelines since the application, appointment, conflict of interest, Brown Act, and parliamentary procedure policies apply to them.

ROLE OF CITY ADVISORY GROUPS

IN POLICY-MAKING
Role of Boards, Commissions, and Committees
In keeping with the City's philosophy of community member involvement, the City Council appoints persons to City Council Advisory Groups to assist in formulating City policy. Santa Barbara is proud of the quality of service performed by its appointees.

In accordance with Section 800 of the Charter of the City of Santa Barbara, the actions of Charter-established boards and commissions are advisory to the City Council, with a few limited exceptions specifically set forth in the Charter.

City of Santa Barbara Resolution No. 7885 regarding recommendations from boards and commissions to government agencies (adopted April 16, 1974), states that board and commission recommendations on matters which come before their respective bodies should be forwarded to the City Council for review since those recommendations are advisory to the City Council. The resolution is being modified to state states that:
“Generally, When any board or commission requests that its recommendations be forwarded to another governmental agency: (1) that the recommendation be sent first to the City Council with a request that it be forwarded with or without comment by the City Council; and (2) that except in the most extraordinary circumstances the City Council shall forward such recommendation and, in its discretion, forward it with or without comment.”

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 4 Advisory Groups shall not have standing committees unless formed by the City Council as required, excepting those formed before July 1, 2023.

This document shall override any information specific to each Advisory Group.

Serving in Advisory Capacity
Members are responsible for attending all meetings regularly, understanding the duties of their positions, adhering to the Citywide Nondiscrimination Policy and Excellence in Customer Service Code of Conduct, and working in a manner that will contribute to the betterment of Santa Barbara. Members are expected to act in a professional manner, extending courtesy to appointees, staff, and participants in the board process.

SOURCES OF INFORMATION
To learn about the roles and responsibilities of the Advisory Groups, a variety of resources are available in the City Clerk's Office and on the City’s web site.

Charter of the City of Santa Barbara
The City is governed by the provisions of its Charter, which was were approved by the voters of the City of Santa Barbara. The California Constitution creates two types of cities: general law cities and charter cities. Charter cities are governed by the provisions of their own adopted Charter unless the State of California has stated specifically that State laws have preempted an area of regulation. Generally, charter cities have more local authority over areas that traditionally have been considered "local" or municipal affairs, for example, zoning or local taxes.

Ordinances - Santa Barbara Municipal Code
The Santa Barbara Municipal Code is a compilation of all codified ordinances, which are the laws of the City. Copies of City ordinances - old and current - are available in the City Clerk's Office and as well as on the City website. In addition, certain ordinances, generally those with a specific, limited, or temporary purpose, are not codified. These "uncodified" ordinances also are available by contacting the City Clerk's Office.

Resolutions
Resolutions constitute a written action or decision by the City Council. Copies of the resolutions, which create certain committees, set forth policy, establish membership, etc., are available by contacting the City Clerk's Office as well as on the City website.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 5 Minutes - Official Record
The City Clerk's Office maintains the official minutes of actions taken by the City Council since 1850. Reports presented to the City Council by the City Advisory Groups are available in the City Clerk's Office. The City Staff Liaison to each group is responsible for maintaining the original minutes of meetings of the City Advisory Group. The current agendas of the City Advisory Groups are available on the City’s website at www.SantaBarbaraCA.gov and are generally posted at the location where each City Advisory Group regularly meets. Minutes shall be prepared as action minutes unless otherwise directed by the City Attorney.

Agendas
City staff shall be responsible for establishing the agenda, in consultation with the Chair and Vice-Chair. Each item of business to be considered at a regular meeting must appear on the agenda for that meeting, except as provided in these procedures or under state law. The agenda shall include a brief general description of each item of business to be transacted or discussed. The description should reasonably inform the public as to the nature of the item and any potential action.

The current agendas of the City Advisory Groups are available on the City’s website at www.SantaBarbaraCA.gov and are generally posted at the location where each City Advisory Group regularly meets.

VACANCIES
There are two kinds of City Advisory Group vacancies, scheduled and unscheduled.

Scheduled Vacancies
Scheduled vacancies are those created by the expiration of the member’s term. Terms typically end either on June 30 or on December 31 of staggered years.

In accordance with state law, a list of all scheduled vacancies for the upcoming calendar year is posted in the City Clerk's Office, the City website, and at the Central Library on or before December 31 of each year.

Unscheduled Vacancies
Unscheduled vacancies are those created when a member cannot serve out their entire term due to resignation, removal, or death.

A City Advisory Group member is subject to removal by a motion of the City Council adopted by the affirmative votes of a majority of the total membership of the City Council.

In accordance with state law, a special vacancy notice must be posted in the City Clerk's Office and in at the Central Library not earlier than 20 days before or not later than 20 days after the vacancy occurs. Final appointments to the City Advisory Group will not be made for at least 10 working days after the posting of the special vacancy notice in the City Clerk’s Office.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 6

RESIGNATIONS
If a City Advisory Group member finds that they cannot perform the duties of the office because of health, business, or other reasons, they shall submit a written resignation to the City Council in care of the City Clerk's Office for action.

A member who is required to be a City resident and who relocates their residence outside of the City shall immediately notify the City Clerk's Office and resign from the board, commission, or committee.

RECRUITMENT PROCESS
Recruitments
Semiannual and annual recruitments are conducted Recruitment cycles are conducted in the Spring and Fall of each year to fill numerous positions whose terms expire on June 30 of the current year, December 31 of the current year, as well as previously unfilled positions. and at the end of each calendar year, respectively. Additional recruitments may occur during the year, for example, to fill positions on a newly created Advisory Group board, commission, or committee, or to add sufficient members on an Advisory Group on a board, commission, or committee for a quorum and when unexpected vacancies occur.

As a part of the recruitment process, City Council, by way of action, determines the recruitment schedule for each cycle. The City Clerk's Office then notifies each incumbent as well as interested persons, about the term expirations and vacancies, the deadline for receipt of applications, and the dates for the interviews and appointments. Recruitment schedules will also be posted on the City website.

Eligibility
Qualifications for membership vary depending on the City Advisory Group. In most cases, appointees must be residents and qualified electors of the City, and remain qualified electors during their term of office. A qualified elector is a United States citizen, 18 years of age or older, who resides within the city limits of Santa Barbara and is eligible to vote. Unless otherwise stated, a public at-large member is a resident living within the city limits of Santa Barbara. An All applicants and appointees may not hold any full-time paid office or employment with the City of Santa Barbara.in City government. Membership qualifications are listed in the vacancy notices available in the City Clerk’s Office, at the Central Library, and on the City’s web site at www.SantaBarbaraCa.gov.

Applications
Persons interested in serving on a City Council Advisory Group, including incumbents who wish to be considered for reappointment, must file an application and, if applying to more than one position, list all of the Advisory Groups they are interested being appointed to, in order of preference, a separate application for each group with the City Clerk's Office. Applications may be found on the City’s website at be found here:
https://santabarbaraca.gov/government/boards-commissions. Upon receipt of an application, the City Clerk’s Office will confirm receipt via e-mail.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 7 Applications may be completed for vacancies that currently exist or for consideration when future scheduled or unscheduled vacancies occur. An application remains on file in the City Clerk’s Office for a period of one-year from the date of receipt unless the applicant requests in writing that it be withdrawn from appointment consideration.

All applications submitted to the City Clekr’s Office will be distributed to City Staff and as well as to the City Council for review. Additionally, submitted applications are considered public records and are subject for production if requested, per Government Code § 7920.530.

Interviews
All applicants, including and current advisory group members applying for reappointment, are required to be interviewed for the position they are seeking appointments for. appear for an interview before the City Council. The City Council interviews each applicant during a Council meeting open to the public. Each applicant is requested to prepare a two-to-three-minute verbal presentation that responds to a set of general and specific questions that are provided to the applicant by the City Clerk’s Office in advance. An overall time limit of five minutes for the interview is allotted if the person is applying for more than one group. City Council may also, upon majority consensus, change the format of how to conduct interviews during specific recruitment cycles, such as virtual interviews in lieu of in-person. The City Clerk’s Office will notify all applicants of the date(s) and time(s) for the interviews, as well as of any changes made by Council to this process, via email.

During the interview, applicants may express the desire to be appointed to a group other than that to which they have submitted an application to for the Council’s consideration. If the applicant is qualified, the applicant’s name will be added to the list of persons eligible for appointment. Alternatively, in an effort to fill all vacancies, the Council may ask applicants to determine if they are eligible and are interested in being appointed to a group other than that to which the applicant has applied and interviewed. If applying to more than one advisory group, please state your preference as to which board you prefer. With the applicant’s approval, the applicant’s name will be added to the list of persons eligible for appointment.

The City Clerk’s Office will notify applicants of the date(s) and time(s) for the interviews via e-mail. Names of applicants failing to appear for an interview will be removed from the list of persons eligible for appointment unless a majority of the City Council votes to include the applicant for consideration.

APPOINTMENT PROCESS
Appointments
After interviewing the applicants, the City Council makes appointments by majority vote in open session. In making these appointments, the Council is guided by the City’s commitment to Inclusion, Diversity, Equity, and Accessibility (IDEA)https://santabarbaraca.gov/government/departments/human-resources/inclusion-diversityequity-action-idea). The appointees are notified of the Council's decision by email. A list of the appointments is posted to the City’s web site at www.SantaBarbaraCA.gov in addition to all of the applicable Advisory Group rosters being updated.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 8 Equal Opportunity Goals
The City Council has established a policy for the appointment process of members to the City's various Advisory Groups. boards, commissions, and committees. This process includes community-wide distribution of information including the number of vacancies and length of term, a full description of the purposes of the City Council Advisory Group, meeting times, deadline for applying, and the appointment process.

In making appointments, the City Council is guided by the City's commitment to nondiscriminatory employment practices and its intention to “serve as a model for equal opportunity through its prerogative of commission and board appointments.” (Resolution No. 8022, adopted March 18, 1975)
The City Council and staff are committed to equal opportunity without discrimination or harassment. The City maintains its commitment to equality in the conduct of City business and encourages applications from all qualified candidates. The City of Santa Barbara prohibits any policy, plan, program, custom or practice which has a discriminatory effect related to race, creed, color, national origin, ancestry, sex, political affiliation, religious belief, disability (mental and physical, including HIV and AIDS), medical condition (cancer and genetic characteristics) sexual orientation, gender identity and expression (including transgenderism) marital status or age. This policy applies to members of all advisory boards, commissions and committees Advisory Groups, citizen volunteers, City Council, City employees, and to those who do business with or who seek to do business with the City of Santa Barbara.

Diversity, Equity, Inclusion and Accessibility
The City of Santa Barbara is a welcoming, diverse community where every person can thrive. We actively seek out and strive to understand all perspectives, beliefs, and values and as well as encourage engagement from all people in decisions affecting them. We recognize all people for their contributions and accomplishments.

Diversity, Equity, Inclusion and Accessibility are important to the City because a thriving workplace must not only be comprised of people from different backgrounds and perspectives but also recognize their varied contributions and accomplishments. Committing to practices that value and include diversity at all levels of the organization is an essential step to developing strategies that meet the needs of a diverse community.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 9 Serving On More than One City Council Advisory Group
While we recognize the wealth of expertise available in our community, it is the City Council's preference that people serve on just one board, commission, or committee that is advisory to the City Council. The exception is in the case of the City Council Advisory Groups that are created for a limited term and purpose, and that require a limited time commitment from their members or meet infrequently. This does not include those members serving on a board, commission, or committee that is not advisory to the City Council such as the Housing Authority Commission, Santa Barbara Metropolitan Transit Board, Mosquito and Vector Management District Board of Santa Barbara County, and the Central Coast Commission for Senior Citizens. In furtherance of this policy, the City Council may ask an applicant who is a current member of a City Advisory Group board, commission, or committee to resign from that position as a condition of appointment to another Advisory Group board, commission, or committee.

Term of Appointment
Terms of office for the City Council Advisory Groups are generally four years, with different term lengths for some Groups. The terms are staggered so that all terms do not expire in any one year. Upon the expiration of a term, members can continue to serve until their successors are appointed and qualified, to assist in avoiding quorum issues. Members serve until their successors are appointed and qualified. As previously stated, if a member resigns before the expiration of a term, their replacement serves out the remainder of that term.

Successive Terms of Members of Boards, Commissions, and Committees It is the policy of the City Council that wide community participation be sought in affairs of municipal government and that membership on the City Council Advisory Groups be open, insofar as is practicable, to all competent and interested persons who meet the stated qualifications.

Pursuant to that policy, no member of an advisory group shall serve for longer than two consecutive full terms, consisting of an uninterrupted period of eight years. If the Council finds that a particular member of an advisory group has unique qualifications that are of special benefit to the City, then said member may be reappointed to the same advisory group (Resolution No. 06-093, adopted November 14, 2006).

Members of boards and commissions not advisory to the City Council, such as the Central Coast Commission for Senior Citizens, the Housing Authority Commission, the Mosquito and Vector Management District of Santa Barbara County, and the Santa Barbara Metropolitan Transit District Board, shall comply with the term limits specified in the law establishing the board or commission.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 10 Oath of Office
Article XX, Section 3, of the Constitution of the State of California requires that an oath of office be administered. After appointments are made, staff administers a written oath in the City Clerk's Office or by a Notary Public. Oaths must be taken before the newly appointed or reappointed member participates in their first Advisory Group meeting after their term becomes effective.

Advisory Group staff is also deputized by the City Clerk Services Manager to be able to swear in newly appointed or reappointed members that were unable to be sworn in at the City Clerk’s Office before participating at their first meeting of their new term.

Orientation Process
Each department conducts an orientation session for its City Council Advisory Group(s) and distributes a reference manual to new City Council Advisory Group appointees.

Advisory Group Membership List (Roster)
The members of all City Council Advisory Groups are listed in the "City of Santa Barbara Advisory Group Membership List" and is available in maintained by the City Clerk’s Office. The membership list (Roster) is also available on the City’s web site at www.SantaBarbaraCA.gov.

The Roster for each Advisory Group is also available on the webpage created for each specific Advisory Group on the City’s website at www.SantaBarbaraCA.gov.

Compensation
Most members of the Council-appointed City Advisory Groups receive no payment, however, there are some Advisory Groups that do receive a stipend. Compensation information for City Advisory Groups can be found on the webpage created for each specific advisory group on the City’s web site at www.SantaBarbaraCA.gov.

Council Liaisons
A City Councilmember is usually appointed as a liaison to each City Council Advisory Group in January of each year. Councilmember liaisons may attend meetings and participate in the proceedings, but Councilmember liaisons are not voting members of the advisory group.

Councilmember liaisons may provide a verbal report of the proceedings to the full Council during a regular City Council meeting.

Appointees shall not be appointed to act as liaisons to other Advisory Groups unless appointed by Council.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 11 CONFLICT OF INTEREST – STATEMENTS OF ECONOMIC INTERESTS Purpose
The Political Reform Act of 1974 (Government Code Sections 81000, et seq.), which was approved by the voters of the State of California, is intended to prevent conflicts of interest by requiring public officials to disclose certain personal financial interests, which could foreseeably cause conflicts, by filing a Statement of Economic Interests (more commonly referred to as the “Form 700”). In addition, a public official may be required to disqualify themself from making, participating in, or attempting to influence any government decision which will affect any of their financial interests, not just those that are required to be disclosed.

For more information, the Fair Political Practices Commission (FPPC) Office is available at their toll-free telephone number (866-275-3772) and at www.fppc.ca.gov. The City Clerk’s Office and the City’s web site at www.SantaBarbaraCA.gov also provide conflict of interest information.

Public Inspection
The City Clerk’s Office provides the necessary information needed by designated filers to complete their Statement of Economic Interests forms (Form 700). All Forms are filed either electronically, or hard copy originals are filed with the City Clerk’s Office. except for the original statements of Planning Commissioners, which are sent to the Fair Political Practices Commission; the City Clerk’s Office retains a copy. Statements of Planning Commissioners, Mayor and City Councilmembers, the City Administrator, the City Attorney, and the Finance Director are filed directly with the Fair Political Practices Commission.

The original hard-copy statements that are filed with the City Clerk’s Office are retained in the City Clerk’s Office for seven years, after which time they may be properly destroyed (Government Code Section 81009). All such forms are open for public inspection and reproduction copies can be requested at 10 cents per page, or, if the forms are 5 years or older, a retrieval fee of $5.00 per request will apply (Government Code Section 81008).

Filers
Members of the advisory groups that are required to file a Statement of Economic Interest can be found at the following website: https://santabarbaraca.gov/government/boardscommissions.

The Political Reform Act of 1974 also requires agencies to adopt a Conflict of Interest Code listing all designated filers for a specific agency. The Conflict of Interest Code is reviewed and updated with necessary changes, such as adding or removing designated filers, biennially on evennumbered years. The Conflict of Interest Code for the City of Santa Barbara is adopted via Council Resolution.

A list of designated filers, including members of the Advisory Groups that are required to file a Statement of Economic Interest, can be found at the following website by reviewing the City’s current Conflict of Interest Code Resolution: https://santabarbaraca.gov/government/prioritiespolicies/government-transparency.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 12 Type of Statements
Statements of Economic Interest must be filed within 30 days of assuming office; annually no later than April 1st of each year for the reporting period of January 1 through December 31; and within 30 days after leaving the designated position.

Statements of Economic Interest (Form 700) must be filed:
 Within 30 days of assuming office;
 Annually no later than April 1st of each year for the reporting period of January 1 through December 31 from the previous year, each year the position is held; and  Within 30 days after leaving the designated position.

The City Clerk’s Office will provide all designated filers the necessary information on how to complete their filing requirements.

Additional Late Filing, Non-Filing, and Fine Provisions In addition to the late filing, non-filing, and fine provisions contained in the Political Reform Act, the following will apply:

Late Filings
The City Council Advisory Group members who fail to file statements within 30 days of the statutory deadline will not be allowed to participate in meetings of the boards, commissions, or committees Advisory Groups to which they have been appointed until the statement is filed. with the City Clerk's Office.

Non-Filings
The City Council Advisory Group members who fail to file statements within 60 days of the statutory deadline will be subject to removal from the boards, commissions, or committees Advisory Group to which they have been appointed by motion of the City Council, adopted by the affirmative votes of a majority of the total membership of the City Council.

Fines
The fines assessed to the City Council Advisory Group members are due and payable within 30 days of receiving specific written notice of the fine unless prior written arrangements are agreed to by the City Clerk’s Office and met by the City Council Advisory Group member; and they will not be allowed to participate in meetings of the boards, commissions, or committees Advisory Group to which they have been appointed until the fine is paid to the City Clerk's Office.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 13 Unpaid Fines
The City Council Advisory Group members who do not pay their fines within 30 days of receiving specific written notice will be subject to removal from the boards, commissions, or committees Advisory Group to which they have been appointed by motion of the City Council, adopted by the affirmative votes of a majority of the total membership of the City Council.

AB 1234 ETHICS TRAINING
Assembly Bill 1234 (2005) requires that if a local agency provides any type of compensation, salary, or stipend to, or reimburses the expenses of a member of its 'legislative body' (as that term is defined in California Government Code Section 54952), that local agency's officials must receive training in ethics. The training must encompass both general ethics principles, as well as a summary of specific laws concerning conflicts of interests, rules and limitations on gifts, and government transparency. The initial training must be completed no later than one year after the first day of service; and then the training course must be completed once every two years thereafter.

The official training sessions must last a minimum of two hours.

In addition to the State mandate, the City of Santa Barbara requires that members of certain City Council Advisory Groups must also take AB 1234 training because their roles may involve making decisions that impact individuals’ or businesses’ financial or real property interests, or they may be involved in approving leases, contracts or other City budgetary decisions. A list of the Advisory Groups required to take the AB 1234 training can be found at the following website. https://santabarbaraca.gov/government/boards-commissions Training must occur within one year after the member is appointed or reappointed to the board. The FPPC (https://fppc.ca.gov/learn/training-and-outreach/t-o-public-officials.html); the California Institute of Local Government (https://www.ca-ilg.org/ethics-education-ab-1234-training); and the Office of the Attorney General (https://oag.ca.gov/ethics) contain valuable information on their websites regarding the AB 1234 Ethics Training requirement.

There are numerous AB 1234 training options, but the City recommends that advisory board and commission members complete the free on-line training program offered by the California FPPC at http://localethics.fppc.ca.gov/login.aspx. Both the FPPC (http://www.fppc.ca.gov/index.php?id=477) and the California Institute of Local Government (http://www.ca-ilg.org/ethics-education-ab-1234-training) contain valuable information on their websites regarding the AB 1234 Ethics Training requirement.

A list of the Advisory Groups required to take the AB 1234 training can be found at the following website by reviewing the City’s current Conflict of Interest Code Resolution:
https://santabarbaraca.gov/government/priorities-policies/government-transparency. The City of Santa Barbara asks that Advisory Group members complete their Ethics Training within one year after the member is initially appointed to their position, and every two years thereafter while the member still holds their position, in accordance with the law.

Although only certain City Council Advisory Groups are required to fulfill this requirement (including submitting a certificate of completion to the City Clerk’s Office), it is recommended that all City Council Advisory Group Members complete the training at least once after appointment.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 14 The City Clerk’s Office will provide all designated members the necessary information on how to complete their AB 1234 Ethics Training requirement.

BROWN ACT COMPLIANCE
Purpose
The Ralph M. Brown Act was enacted in 1953 to assure that government action is taken openly. It is also known as the "California Open Meetings Law." (Government Code Sections 54950, et seq.)
Provisions
All meetings of City boards, commissions, committees, and Advisory Groups are subject to the Brown Act, are to be open and public, and all persons are to be permitted to attend any meeting.

Agenda
A written agenda must be prepared for each regular or special meeting of every legislative body. The agenda must contain a brief general description of each item of business to be transacted or discussed at the meeting and must specify the time and location of the meeting. No action shall be taken on any item not appearing on the posted agenda.

Posting of Agenda
The agenda must be posted at the location where the meeting will be taking place at least 72 hours before a regular meeting, and or at least 24 hours before a special meeting, and must be posted in a location that is freely accessible to members of the public 24 hours per day.

Agendas and Written Materials as Public Records
The Brown Act provides that agendas of a public meeting of the legislative body, as well as any other “writings” currently defined by law as public records, must be available for inspection when distributed to all, or a majority of all, of the members of the legislative body. Such documents are required to be available for inspection at the same time that they are distributed to the members of the body. If the material is distributed during the meeting and prepared by the City, it must be made available for public inspection at the meeting. If it is distributed during the meeting by anyone else, it will be made available by City staff for public inspection after the meeting. In addition, copies of such documents must be made available to the public by request without delay pursuant to the California Public Records Act.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 15 Regular Meetings
Legislative bodies must set a date, time, and place for holding regular meetings.

Special Meetings
The Brown Act permits special meetings to be called at any time either by the presiding officer of a board or commission or a majority of the members of a legislative body. The meeting can be called by delivering personally, or by any other means, written notice to each member of the legislative body, as well as to each local newspaper of general circulation, radio, and/or television station requesting notice. The notice must be received at least 24 hours before the time of the meeting set forth in the notice.

Notice is not required for those members of the legislative body who have waived it or who attend the meeting despite the absence of formal notice. Notice is required even if no action is taken at the special meeting. The signatures of the City Council Advisory Group body may be obtained, or other proof of service may be prepared to serve as proof that an agenda was received in a timely fashion.

The notice also must be physically posted at least 24 hours before the time of the meeting in a location which is freely accessible to the public 24 hours per day. The notice must include the time and place of the meeting and identify the business to be transacted at the special meeting.

Only the business set forth in the notice may be considered at the special meeting.

Adjourned Meetings
Regular or special meetings may be adjourned (continued) to a specific time and place (within the City limits unless it meets a certain exception). Less than a quorum can adjourn a meeting. A notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held within 24 hours after the time of the adjournment provided that if the matter is continued to a time less than 24 hours after the adjournment, a copy of the order shall be posted immediately following the meeting at which the order or declaration of continuance was made.

Emergency Meetings
An exception to the 24-hour notice requirement for special meetings is allowed in the case of a public emergency situation involving matters that require prompt action due to the disruption or threatened disruption of public facilities. (Government Code Section 54956.5) The applicability under the Brown Act of such emergency situations shall be determined exclusively by the City Attorney’s Office.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 16 Quorum
Unless otherwise specified by the City Charter, an ordinance, or a resolution of the City Council, a majority of the members shall constitute a quorum (e.g. seven members on the advisory group, four members present at a meeting constitutes a quorum or majority).

Public Comment
Members of the public shall be given the opportunity to directly address the legislative body concerning any item that has been described in the agenda for the meeting. (Government Code Section 54954.3[a]) Additionally, every agenda for regular meetings shall provide an opportunity for members of the public to address the legislative body directly on items of interest to the public that are within the jurisdiction of the legislative body provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by the Brown Act. Public comment can also be limited to only matters listed on special meeting agendas.

PARLIAMENTARY PROCEDURE
’Rosenberg’s Rules of Order
All City Council Advisory Groups appointed by the City Council shall conduct their meetings in accordance with Rosenberg’s Rules of Order, which may be found at: rosenberg’s-rules-oforder-simple-parliamentary-procedures-for-the-21st-century.pdf (calcities.org) .

Bylaws
In limited circumstances, approved by the City Administrator and City Attorney, I the City Council Advisory Groups may develop guidelines or rules and regulations, i.e., bylaws, provided that the bylaws are within the City Council Advisory Group’s powers and duties established by the City Council and are consistent with the requirements of these Guidelines. The bylaws shall include the regular meeting day, time, and place of meeting. A City Council Advisory Group’s bylaws are subject to approval by Resolution of the City Council.

CODE OF CONDUCT
Purpose
The City has adopted an Excellence in Customer Service Code of Conduct to guide appointed members of Boards and Commissions, City employees and its volunteers on the core values that the City expects when conducting city business. The primary purpose for establishing a Code of Conduct is to affirm that Council Advisory Group members are independent, impartial and fair in their judgment and actions, and to ensure that all process participants are treated courteously and respectfully. Advisory group members are considered public officials and must obey all state conflict of interest laws, including the state Political Reform Act 1974. The City has developed additional comportment procedures and adopted policies for appointed advisory board members to follow to help avoid situations that may cause the appearance of a conflict. The following City

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 17 policies apply:

1. Contact with Individual Advisory Board or Commission Member Outside a Noticed Public Meeting (Ex Parte Communications). The City recommends that advisory appointees not communicate with applicants or other interested persons about pending projects outside a properly agendized meeting. This recommendation extends to communicating by telephone, email, and in-person meetings. The City believes that such communications can give the appearance of improper influence on an City board or commission Advisory Group member, can be an inordinate burden on the member’s personal time, and can expose the City to allegations that the Brown Act has possibly been violated.

2. Disqualification for Potential Conflict of Interest (Recusal). Any advisory board Advisory Group member who may be disqualified from participating in a City decision (such as by voting on a particular matter) by reason of a potential conflict of interest under the state Political Reform Act of 1974 shall, immediately prior to consideration of the item at a public meeting, do all of the following: 1. identify the nature of the possible financial interest that gives rise to the conflict of interest in detail sufficient for the public to understand the conflict (disclosure of an actual street address is not required), 2. recuse themselves from discussing or voting, and 3. leave the meeting room until after the discussion, vote, or other disposition of or decision on the item, unless the matter has been placed on the consent calendar of uncontested matters. An Board or Commission Advisory Group member stating such disqualification shall not be counted as a part of a necessary quorum and shall be considered to be absent for the purpose of determining the outcome of any vote on such matter.

A primary form of conflict-of-interest disqualification is one involving a potential “material financial interest” where non-participation in the City decision is legally mandated under the state Political Reform Act. However, in some instances, potential conflicts not regulated by the state Political Reform Act, (such as a board member with a familial, personal, or prior business relationship with the applicant) can be perceived as the appearance of an improper conflict of interest or as a potential for the public official to be biased (i.e., either for or against) a particular applicant. The City believes that it is a good ethical practice to avoid even the appearance of a conflict or impropriety in these situations as well by stepping down and abstaining in a manner similar to that required by the state Political Reform Act of 1974 and the FPPC regulations interpreting that Act. Applicants are responsible for seeking advice regarding potential conflicts of interest.

3. Abstention on Continued Items. Abstention procedures are established to ensure fair project reviews while maintaining consistent direction on projects from boards and commission Advisory Groups. An advisory board Advisory Group member who was absent in a previous review meeting should only comment on a continued project if the member has subsequently thoroughly informed themselves of the previous board discussion and direction. A board member may inform themselves of the prior discussion by reviewing the submitted plans, reading the minutes of the relevant portions of the missed meeting(s), or viewing the video(s) of the previous hearing(s). The amount of review necessary in order for a board member to properly inform themself of the prior discussion is a personal judgment and will depend upon the nature and complexity of the application and project under review. If an advisory board Advisory Group member has not fully informed themselves of what occurred during the prior reviews, the member should generally abstain

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 18 from commenting, conditioning, or participating in the vote on the project. The advisory board member who decides to abstain due to a prior absence shall publicly state on the record the reason for the abstention immediately prior to the hearing of agenda item.

If a board member abstains from participating in a review and a vote because the board member missed a prior meeting, but remains present for the discussion and vote, the board member’s presence counts toward the quorum.

4. Failure to vote. Every board or commission member should vote unless disqualified by reason of a conflict of interest as described herein. A board or commission member who abstains from voting in effect consents that a majority of the quorum may decide the question voted upon. Board and commission Advisory Group members should review all matters fairly and objectively.

5. Attendance. In order to conduct efficient meetings, best serve the public’s interest, and to avoid the loss of a quorum, regular attendance by all members is necessary. If an advisory board Advisory Group member cannot attend a scheduled meeting or must step down from a particular item due to conflict of interest or will need to leave the meeting early, the member is asked to contact City staff at the earliest possible opportunity prior to the meeting date.

The purpose for this staff notification is to ensure a minimum quorum of members is maintained for review of all items. Advisory appointees Group members should stay for the duration of the meetings, in fairness to all applicants scheduled for that meeting.

6. Attempting to Influence a Governmental Decision. The state Fair Political Practices Commission (FPPC) provides guidance on the requirements of the state Political Reform Act of 1974 and State regulations and interpretations implementing the Political Reform Act which provide for some very narrow exceptions to the general rule that a member may not attempt to influence a governmental decision by participating in a decision when there is a conflict of interest. Advisory appointees Group members are advised to consult the FPPC prior to taking any action which may implicate or pertain to possible state conflict of interest and disqualification requirements and may consult with the City Attorney’s office in order to receive assistance in doing so.

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Guidelines for the City of Santa Barbara Advisory Groups, 03/24 Page 19

EXHIBIT A

STATEMENT TO BE READ BY DESIGN REVIEW BOARD CHAIR WHEN A MEMBER OF THAT BOARD WILL BE MAKING A PRESENTATION – TO BE READ IMMEDIATELY AFTER THE AGENDA ITEM IS CALLED AND TO BE PRINTED ON THE AGENDAS.

The State Political Reform Act’s conflict of interest provisions are intended to ensure that local public officials will perform their duties in an impartial manner, free from bias caused by their own financial interest. As a result, the Political Reform Act prohibits local public officials from “making, participating in making or using their official position to influence a governmental decision in which they may have a financial interest.”
When a governmental decision is being made by the same board to which a local public official has been appointed, the official is attempting to use their official position to influence the decision of their own board if the official contacts other appointees or city employees in order to discuss the possible decision and does so in a manner which appears to be an attempt to influence the decision. Generally, such an official is also attempting to use their official position to influence a decision if they appear before their own board.

However, a narrow exception to these conflict provisions allows a local public official who is an architect, engineer, or similar design professional to make a presentation to their own board if the following limited circumstances apply:
a. the official is only presenting drawings or submissions of an architectural, engineering, or similar nature which the official themself has prepared for a client and they only explain the drawings or responds to questions about the drawings and only so long as the official does not advocate any specific board decision or otherwise attempt to influence or “participate” in a board decision related to the drawings and the official’s client.
b. The board qualifies as a “design review committee” as that term is used by Title 2, California Code of Regulations, section 18702.4, subparagraph (b)(5), (and the opinions and decisions of the state Fair Political Practices Commission) such as the Santa Barbara ABR, HLC, or the SFDB:. c. the official is an architect, engineer, or a person in a related profession and he or she was appointed to the board to fulfill a legal requirement that the board contain an architect, engineer, or other similar professional in a related profession.
d. the official is a “sole practitioner,” as that term is defined by Title 2, California Code of Regulations section 18702.4 (and in the opinions and decisions of the state Fair Political Practices Commission.).

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ACKNOWLEDGMENT OF RECEIPT OF GUIDELINES
This is to acknowledge that I have received a copy of the GUIDELINES FOR CITY OF SANTA BARBARA ADVISORY GROUPS, approved by the City Council on _____, 2023, and understand that it contains important information on the City's rules and regulations and on my obligations and responsibilities as an Advisory Group member. I acknowledge that I am expected to read, understand, and adhere to City policies and will familiarize myself with the provisions in the handbook Guidelines. I understand that I am governed by the provisions in the handbook Guidelines; and that the City may change, rescind or add to any policies or practices declared in the handbook Guidelines from time to time in its sole and absolute discretion with or without prior notice. The City will advise Advisory Group members of substantive changes within a reasonable time.
__________________________________________ _____________________ Appointee’s Signature Date
__________________________________________
Appointee’s Name (Typed or Printed)
This document shall be signed by the member and placed in the City Clerk’s file.

RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 24-021

TO REVISE THE ADVISORY GROUP GUIDELINES
WHEREAS, New Advisory Group Guidelines were adopted on March 12, 2024, rescinding the original Advisory Group Guidelines that were adopted on February 12, 2013, to govern the conduct of City of Santa Barbara Advisory Group meetings; and WHEREAS, revised guidelines are necessary to reflect changes to the relevant laws, regulations, and City policy.

NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT:

SECTION 1. The Advisory Group Guidelines attached hereto as Exhibit A and incorporated herein by this reference are hereby adopted.

EXHIBIT A

G U I D E L I N E S

FOR THE

CITY OF SANTA BARBARA

ADVISORY GROUPS

APPROVED BY THE CITY COUNCIL
Resolution No. ___
Adopted ___
Prepared by the Santa Barbara City Clerk's Office
Guidelines for the City of Santa Barbara Advisory Groups Page 1

CITY OF SANTA BARBARA ADVISORY GROUPS

Airport Commission
Architectural Board of Review
Civil Service Commissioners, Board of
Fire and Police Commissioners, Board of
Fire and Police Pension Commissioners, Board of
Harbor Commissioners, Board of
Historic Landmarks Commission
Library Board
Parks and Recreation Commission
Planning Commission
Water Commissioners, Board of
Except as provided in the City Charter, all Charter board and commission members must be qualified to vote in the City of Santa Barbara.

Guidelines for the City of Santa Barbara Advisory Groups Page 2 Other City Council Advisory Groups
All City Council Advisory Groups not specified in the City Charter are established by the City Council by ordinance, resolution, or minute action. Some City Council Advisory Groups are formed for a specific purpose and cease to exist when their goals have been accomplished.

Other Appointments
The City makes appointments to groups created by State law, such as: the Housing Authority Commission; the Mosquito and Vector Management District of Santa Barbara County; and the Santa Barbara Metropolitan Transit District Board of Directors. The Housing Authority Commission membership may include two non-City residents. The City also appoints one member to the Central Coast Commission for Senior Citizens.

The Housing Authority Commission, the Mosquito and Vector Management District Board of Santa Barbara County, the Santa Barbara Metropolitan Transit Board, the County Library Advisory Committee, the Golf Advisory Committee, the Integrated Pest Management Advisory Committee, the Santa Barbara Arts and Crafts Show Advisory Committee, the Street Tree Advisory Committee, and the Central Coast Commission for Senior Citizens are not advisory to the City Council; and their members may serve on a group that is advisory to the City Council. These groups are included in these Guidelines since the application, appointment, conflict of interest, Brown Act, and parliamentary procedure policies apply to them.

Guidelines for the City of Santa Barbara Advisory Groups Page 3

ROLE OF CITY ADVISORY GROUPS IN POLICY-MAKING
Role of Boards, Commissions, and Committees
In keeping with the City's philosophy of community member involvement, the City Council appoints persons to City Council Advisory Groups to assist in formulating City policy. Santa Barbara is proud of the quality of service performed by its appointees.

City of Santa Barbara Resolution No. 7885 regarding recommendations from Advisory Groups to government agencies (adopted April 16, 1974), states that board and commission recommendations on matters which come before their respective bodies should be forwarded to the City Council for review since those recommendations are advisory to the City Council. The resolution states that:
“Generally, when any board or commission requests that its recommendations be forwarded to another governmental agency: (1) that the recommendation be sent first to the City Council with a request that it be forwarded with or without comment by the City Council; and (2) that except in the most extraordinary circumstances the City Council shall forward such recommendation and, in its discretion, forward it with or without comment.”
Advisory Groups shall not have standing committees unless formed by City Council as required, excepting those formed before July 1, 2023.

This document shall override any information specific to each Advisory Group.

Guidelines for the City of Santa Barbara Advisory Groups Page 4

SOURCES OF INFORMATION
To learn about the roles and responsibilities of the Advisory Groups, a variety of resources are available in the City Clerk's Office and on the City’s website.

Charter of the City of Santa Barbara
The City is governed by the provisions of its Charter, which were approved by the voters of the City of Santa Barbara. The California Constitution creates two types of cities: general law cities and charter cities. Charter cities are governed by the provisions of their own adopted Charter unless the State of California has stated specifically that State laws have preempted an area of regulation. Generally, charter cities have more local authority over areas that traditionally have been considered "local" or municipal affairs, for example, zoning or local taxes.

Ordinances - Santa Barbara Municipal Code
The Santa Barbara Municipal Code is a compilation of all codified ordinances, which are the laws of the City. Copies of City ordinances - old and current - are available in the City Clerk's Office as well as on the City website. In addition, certain ordinances, generally those with a specific, limited, or temporary purpose, are not codified. These "uncodified" ordinances also are available by contacting the City Clerk's Office.

Minutes - Official Record
The City Clerk's Office maintains the official minutes of actions taken by the City Council since 1850. Reports presented to the City Council by the City Advisory Groups are available in the City Clerk's Office. The City Staff Liaison to each group is responsible for maintaining the original minutes of meetings of the City Advisory Group. Minutes shall be prepared as action minutes unless otherwise directed by the City Attorney.

Agendas
City staff shall be responsible for establishing the agenda, in consultation with the Chair and Vice-chair. Each item of business to be considered at a regular meeting must appear on the agenda for that meeting, except as provided in these procedures or under State law. The agenda shall include a brief general description of each item of business to be transacted or discussed. The description should reasonably inform the public as to the nature of the item and any potential action.

The current agendas of the City Advisory Groups are available on the City’s website at www.SantaBarbaraCa.gov and are generally posted at the location where each City Advisory Group regularly meets.

Guidelines for the City of Santa Barbara Advisory Groups Page 5

VACANCIES
There are two kinds of City Advisory Group vacancies: scheduled and unscheduled.

Scheduled Vacancies
Scheduled vacancies are those created by the expiration of the member’s term. Terms typically end either on June 30 or on December 31 of staggered years.

In accordance with State law, a list of all scheduled vacancies for the upcoming calendar year is posted in the City Clerk's Office, the City website, and at the Central Library on or before December 31 of each year.

Unscheduled Vacancies
Unscheduled vacancies are those created when a member cannot serve out their entire term due to resignation, removal, or death.

A City Advisory Group member is subject to removal by a motion of the City Council adopted by the affirmative votes of a majority of the total membership of the City Council.

In accordance with state law, a special vacancy notice must be posted in the City Clerk's Office and at the Central Library not earlier than 20 days before or not later than 20 days after the vacancy occurs. Final appointments to the City Advisory Group will not be made for at least 10 working days after the posting of the special vacancy notice in the City Clerk’s Office.

Resignations
If a City Advisory Group member finds that they cannot perform the duties of the office because of health, business, or other reasons, they shall submit a written resignation to the City Council in care of the City Clerk's Office for action.

Guidelines for the City of Santa Barbara Advisory Groups Page 6

RECRUITMENT PROCESS
Recruitments
Recruitment cycles are conducted in the Spring and Fall of each year to fill numerous positions whose terms expire on June 30 of the current year, December 31 of the current year, as well as previously unfilled positions. Additional recruitments may occur during the year, for example, to fill positions on a newly created Advisory Group, or to add sufficient members on an Advisory Group for a quorum and when unexpected vacancies occur.

Eligibility
Qualifications for membership vary depending on the City Advisory Group. In most cases, appointees must be residents and qualified electors of the City, and remain qualified electors during their term of office. A qualified elector of the City is a United States citizen, 18 years of age or older, who resides within the city limits of Santa Barbara and is eligible to vote. Unless otherwise stated, a public at-large member is a resident living within the city limits of Santa Barbara. All applicants and appointees may not hold any paid office or employment with the City of Santa Barbara.

Membership qualifications are listed in the vacancy notices available in the City Clerk’s Office, at the Central Library, and on the City’s website at www.SantaBarbaraCa.gov.

Applications
Persons interested in serving on a City Council Advisory Group, including incumbents who wish to be considered for reappointment, must file an application and, if applying to more than one position, list all of the Advisory Groups they are interested being appointed to, in order of preference, with the City Clerk's Office. Applications may be found on the City’s website at https://santabarbaraca.gov/government/boards-commissions. Upon receipt of an application, the City Clerk’s Office will confirm receipt via e-mail.

Applications may be completed for vacancies that currently exist or for consideration when future scheduled or unscheduled vacancies occur. An application remains on file in the City Clerk’s Office for a period of one-year from the date of receipt unless the applicant requests in writing that it be withdrawn from appointment consideration.

All applications submitted to the City Clerk’s Office will be distributed to City Staff and as well as to the City Council for review. Additionally, submitted applications are considered public records and are subject for production if requested, per Government Code § 7920.530.

Guidelines for the City of Santa Barbara Advisory Groups Page 7 Interviews
All applicants, including current Advisory Group members applying for reappointment, are required to be interviewed for the position they are seeking appointments for. The City Council interviews each applicant during a Council meeting open to the public. Each applicant is requested to prepare a two-to-three-minute verbal presentation that responds to a set of general and specific questions that are provided to the applicant by the City Clerk’s Office in advance. An overall time limit of five minutes for the interview is allotted if the person is applying for more than one group.

City Council may also, upon majority consensus, change the format of how to conduct interviews during specific recruitment cycles, such as virtual interviews in lieu of in-person. The City Clerk’s Office will notify all applicants of the date(s) and time(s) for the interviews, as well as of any changes made by Council to this process, via email.

During their interview, applicants may express the desire to be appointed to a group other than that to which they have applied to for the Council’s consideration. If the applicant is qualified, the applicant’s name will be added to the list of persons eligible for appointment. Alternatively, in an effort to fill all vacancies, the Council may ask applicants to determine if they are eligible and are interested in being appointed to a group other than that to which the applicant has applied and interviewed. With the applicant’s approval and confirmation made in writing, the applicant’s name will be added to the list of persons eligible for appointment.

Names of applicants failing to appear for an interview will be removed from the list of persons eligible for appointment unless a majority of the City Council votes to include the applicant for consideration.

Guidelines for the City of Santa Barbara Advisory Groups Page 8

APPOINTMENT PROCESS
Appointments
After interviewing the applicants, the City Council makes appointments by majority vote in open session. In making these appointments, the Council is guided by the City’s commitment to Inclusion, Diversity, Equity, and Accessibility (IDEA) organizational values. The appointees are notified of the Council's decision by email. A list of the appointments is posted to the City’s website at www.SantaBarbaraCA.gov in addition to all of the applicable Advisory Group rosters being updated.

Equal Opportunity Goals
The City Council has established a policy for the appointment process of members to the City's various Advisory Groups. This process includes community-wide distribution of information including the number of vacancies and length of term, a full description of the purposes of the City Council Advisory Group, meeting times, deadline for applying, and the appointment process.

The City Council and staff are committed to equal opportunity without discrimination or harassment. The City maintains its commitment to equality in the conduct of City business and encourages applications from all qualified candidates. The City of Santa Barbara prohibits any policy, plan, program, custom or practice which has a discriminatory effect related to race, creed, color, national origin, ancestry, sex, political affiliation, religious belief, disability (mental and physical, including HIV and AIDS), medical condition (cancer and genetic characteristics) sexual orientation, gender identity and expression (including transgenderism) marital status or age. This policy applies not only to members of all Advisory Groups, citizen volunteers, City Council, City employees, and to those who do business with or who seek to do business with the City of Santa Barbara.

Guidelines for the City of Santa Barbara Advisory Groups Page 9 Diversity, Equity, Inclusion and Accessibility
The City of Santa Barbara is a welcoming, diverse community where every person can thrive. We actively seek out and strive to understand all perspectives, beliefs and values as well as encourage engagement from all people in decisions affecting them. We recognize all people for their contributions and accomplishments.

Serving On More than One City Council Advisory Group
While we recognize the wealth of expertise available in our community, it is the City Council's preference that people serve on just one board, commission, or committee that is advisory to the City Council. The exception is in the case of the City Council Advisory Groups that are created for a limited term and purpose, and that require a limited time commitment from their members or meet infrequently. This does not include those members serving on a board, commission, or committee that is not advisory to the City Council such as the Housing Authority Commission, Santa Barbara Metropolitan Transit Board, Mosquito and Vector Management District Board of Santa Barbara County, and the Central Coast Commission for Senior Citizens. In furtherance of this policy, the City Council may ask an applicant who is a current member of a City Advisory Group to resign from that position as a condition of appointment to another Advisory Group.

Term of Appointment
Terms of office for the City Council Advisory Groups are generally four years, with different term lengths for some Groups. The terms are staggered so that all terms do not expire in any one year. Upon the expiration of a term, members can continue to serve until their successors are appointed and qualified to assist in avoiding quorum issues. As previously stated, if a member resigns before the expiration of a term, their replacement serves out the remainder of that term.

Pursuant to that policy, no member of an advisory group shall serve for longer than two consecutive full terms, consisting of an uninterrupted period of eight years. If the Council finds that a particular member of an Advisory Group has unique qualifications that are of special benefit to the City, then said member may be reappointed to the same Advisory Group (Resolution No. 06-093, adopted November 14, 2006).

Members of boards and commissions not advisory to the City Council, such as the Central Coast Commission for Senior Citizens, the Housing Authority Commission, the Mosquito and Vector Management District of Santa Barbara County, and the Santa Barbara Metropolitan Transit Board, shall comply with the term limits specified in the law establishing that board or commission.

Guidelines for the City of Santa Barbara Advisory Groups Page 10 Oath of Office
Article XX, Section 3, of the Constitution of the State of California requires that an oath of office be administered. After appointments are made, staff administers a written oath in the City Clerk's Office, or by a Notary Public. Oaths must be taken before the newly appointed or reappointed member participates in their first Advisory Group meeting after their term becomes effective. Advisory Group staff is also deputized by the City Clerk Services Manager to be able to swear in newly appointed or reappointed members that were unable to be sworn in at the City Clerk’s Office before participating at their first meeting of their new term.

Orientation Process
Each department conducts an orientation session for its City Council Advisory Group(s) and distributes a reference manual to new City Council Advisory Group appointees.

Advisory Group Membership List (Roster)
The names of the members of all City Council Advisory Groups are listed in the "City of Santa Barbara Advisory Group Membership List" and is maintained by the City Clerk’s Office.

The Roster for each Advisory Group is also available on the webpage created for each specific Advisory Group on the City’s web site at www.SantaBarbaraCA.gov.

Compensation
Most members of the Council-appointed City Advisory Groups receive no payment, however, there are some Advisory Groups that do receive a stipend. Compensation information can be found on the webpage created for each specific Advisory Group on the City’s web site at www.SantaBarbaraCA.gov.

Councilmember liaisons may provide a verbal report of the proceedings to the full Council during a regular City Council meeting.

Advisory Group members shall not be appointed to act as liaisons to other Advisory Groups unless appointed by Council.

Guidelines for the City of Santa Barbara Advisory Groups Page 11 CONFLICT OF INTEREST – STATEMENTS OF ECONOMIC INTERESTS Purpose
The Political Reform Act of 1974 (Government Code Sections 81000, et seq.), which was approved by the voters of the State of California, is intended to prevent conflicts of interest by requiring public officials to disclose certain personal financial interests, which could foreseeably cause conflicts, by filing a Statement of Economic Interests (more commonly referred to as the “Form 700”). In addition, a public official may be required to disqualify themself from making, participating in, or attempting to influence any government decision which will affect any of their financial interests, not just those that are required to be disclosed.

For more information, the Fair Political Practices Commission (FPPC) Office is available at their toll-free telephone number (866-275-3772) and at www.fppc.ca.gov. The City Clerk’s Office and the City’s website at www.SantaBarbaraCA.gov also provide conflict of interest information.

Public Inspection
The City Clerk’s Office provides the necessary information needed by designated filers to complete their Statement of Economic Interests forms (Form 700). Forms are filed either electronically, or hard copy originals are filed with the City Clerk’s Office. Statements of Planning Commissioners, Mayor and City Councilmembers, the City Administrator, the City Attorney, and the Finance Director are filed directly with the Fair Political Practices Commission.

The original hard-copy statements that are filed with the City Clerk’s Office are retained for seven years, after which time they may be properly destroyed (Government Code Section 81009). All such forms are open for public inspection and copies can be requested at 10 cents per page, or, if the forms are 5 years or older, a retrieval fee of $5.00 per request will apply (Government Code Section 81008).

Filers
The Political Reform Act of 1974 also requires agencies to adopt a Conflict of Interest Code listing all designated filers for a specific agency. The Conflict of Interest Code is reviewed and updated with necessary changes, such as adding or removing designated filers, biennially on evennumbered years. The Conflict of Interest Code for the City of Santa Barbara is adopted via Council Resolution.

Guidelines for the City of Santa Barbara Advisory Groups Page 12 Type of Statements
Statements of Economic Interest (Form 700) must be filed:
 Within 30 days of assuming office;
 Annually no later than April 1st of each year for the reporting period of January 1 through December 31 from the previous year, each year the position is held; and  Within 30 days after leaving the designated position.

The City Clerk’s Office will provide all designated filers the necessary information on how to complete their filing requirements.

Late Filing, Non-Filing, and Fine Provisions
In addition to the late filing, non-filing, and fine provisions contained in the Political Reform Act, the following will apply:

Late Filings
The City Council Advisory Group members who fail to file statements within 30 days of the statutory deadline will not be allowed to participate in meetings of the Advisory Group to which they have been appointed until the statement is filed.

Non-Filings
The City Council Advisory Group members who fail to file statements within 60 days of the statutory deadline will be subject to removal from the Advisory Group to which they have been appointed by motion of the City Council, adopted by the affirmative votes of a majority of the total membership of the City Council.

Fines
The fines assessed to the City Council Advisory Group members are due and payable within 30 days of receiving specific written notice of the fine unless prior written arrangements are agreed to by the City Clerk’s Office and met by the City Council Advisory Group member; and they will not be allowed to participate in meetings of the Advisory Group to which they have been appointed until the fine is paid to the City Clerk's Office.

Unpaid Fines
The City Council Advisory Group members who do not pay their fines within 30 days of receiving specific written notice will be subject to removal from the Advisory Group to which they have been appointed by motion of the City Council, adopted by the affirmative votes of a majority of the total membership of the City Council.

Guidelines for the City of Santa Barbara Advisory Groups Page 13 AB 1234 ETHICS TRAINING
Assembly Bill 1234 (2005) requires that if a local agency provides any type of compensation, salary, or stipend to, or reimburses the expenses of a member of its 'legislative body' (as that term is defined in California Government Code Section 54952), that local agency's officials must receive training in ethics. The training must encompass both general ethics principles, as well as a summary of specific laws concerning conflicts of interests, rules and limitations on gifts, and government transparency. The initial training must be completed no later than one year after the first day of service; and then the training course must be completed once every two years thereafter. The official training sessions must last a minimum of two hours.

In addition to the State mandate, the City of Santa Barbara requires that members of certain City Council Advisory Groups must also take AB 1234 training because their roles may involve making decisions that impact individuals’ or businesses’ financial or real property interests, or they may be involved in approving leases, contracts or other City budgetary decisions. The FPPC (https://fppc.ca.gov/learn/training-and-outreach/t-o-public-officials.html); the California Institute of Local Government (https://www.ca-ilg.org/ethics-education-ab-1234-training); and the Office of the Attorney General (https://oag.ca.gov/ethics) contain valuable information on their websites regarding the AB 1234 Ethics Training requirement.

The City Clerk’s Office will provide all designated members the necessary information on how to complete their AB 1234 Ethics Training requirement.

Guidelines for the City of Santa Barbara Advisory Groups Page 14

BROWN ACT COMPLIANCE
Purpose
The Ralph M. Brown Act was enacted in 1953 to assure that government action is taken openly. It is also known as the "California Open Meetings Law." (Government Code Sections 54950, et seq.)
Provisions
All meetings of City Advisory Groups are subject to the Brown Act, are to be open and public, and all persons are to be permitted to attend any meeting.

Posting of Agenda
The agenda must be posted at the location where the meeting will be taking place at least 72 hours before a regular meeting, or at least 24 hours before a special meeting, and must be posted in a location that is freely accessible to members of the public 24 hours per day.

Agendas and Written Materials as Public Records
The Brown Act provides that agendas of a public meeting of the legislative body, as well as any other "writings" currently defined by law as public records, must be available for inspection when distributed to all, or a majority of all, of the members of the legislative body. Such documents are required to be available for inspection at the same time that they are distributed to the members of the body. If the material is distributed during the meeting and prepared by the City, it must be made available for public inspection at the meeting. If it is distributed during the meeting by anyone else, it will be made available by City staff for public inspection after the meeting. In addition, copies of such documents must be made available to the public by request without delay pursuant to the California Public Records Act.

Regular Meetings
Legislative bodies must set a date, time, and place for holding regular meetings.

Guidelines for the City of Santa Barbara Advisory Groups Page 15 Special Meetings
The Brown Act permits special meetings to be called at any time either by the presiding officer or a majority of the members of a legislative body. The meeting can be called by delivering personally, or by any other means, written notice to each member of the legislative body, as well as to each local newspaper of general circulation, radio, and/or television station requesting notice.

The notice must be received at least 24 hours before the time of the meeting set forth in the notice.

Notice is not required for those members of the legislative body who have waived it or who attend the meeting despite the absence of formal notice. Notice is required even if no action is taken at the special meeting. The signatures of the Advisory Group body may be obtained, or other proof of service may be prepared to serve as proof that an agenda was received in a timely fashion.

The notice must also be physically posted at least 24 hours before the time of the meeting at the location where the meeting will be taking place, as well as in a location which is freely accessible to the public 24 hours per day. The notice must include the time and place of the meeting and identify the business to be transacted at the special meeting. Only the business set forth in the notice may be considered at the special meeting.

Quorum
Unless otherwise specified by the City Charter, an ordinance, or a resolution of the City Council, a majority of the members shall constitute a quorum (e.g. seven members on the Advisory Group, four members present at a meeting constitutes a quorum or majority).

Guidelines for the City of Santa Barbara Advisory Groups Page 16 Public Comment
Members of the public shall be given the opportunity to directly address the legislative body concerning any item that has been described in the agenda for the meeting (Government Code Section 54954.3[a]). Additionally, every agenda for regular meetings shall provide an opportunity for members of the public to address the legislative body directly on items of interest to the public that are within the jurisdiction of the legislative body provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by the Brown Act. Public comment can also be limited to only matters listed on special meeting agendas.

Guidelines for the City of Santa Barbara Advisory Groups Page 17

PARLIAMENTARY PROCEDURE
Rosenberg’s Rules of Order
All City Council Advisory Groups appointed by the City Council shall conduct their meetings in accordance with Rosenberg’s Rules of Order, which may be found at: rosenberg's-rules-oforder-simple-parliamentary-procedures-for-the-21st-century.pdf (calcities.org).

Bylaws
In limited circumstances, approved by the City Administrator and City Attorney, the City Council Advisory Groups may develop guidelines or rules and regulations, i.e., bylaws, provided that the bylaws are within the City Council Advisory Group's powers and duties established by the City Council and are consistent with the requirements of these Guidelines. The bylaws shall include the regular meeting day, time, and place of meeting. A City Council Advisory Group’s bylaws are subject to approval by Resolution of the City Council.

Guidelines for the City of Santa Barbara Advisory Groups Page 18

1. Contact with Individual Advisory Board or Commission Member Outside a Noticed Public Meeting (Ex Parte Communications).

The City recommends that advisory appointees not communicate with applicants or other interested persons about pending projects outside a properly agendized meeting. This recommendation extends to communicating by telephone, email, and in-person meetings.

The City believes that such communications can give the appearance of improper influence on an Advisory Group member, can be an inordinate burden on the member’s personal time, and can expose the City to allegations that the Brown Act has possibly been violated.

2. Disqualification for Potential Conflict of Interest (Recusal).

Any Advisory Group member who may be disqualified from participating in a City decision (such as by voting on a particular matter) by reason of a potential conflict of interest under the state Political Reform Act of 1974 shall, immediately prior to consideration of the item at a public meeting, do all of the following:

1. Identify the nature of the possible financial interest that gives rise to the conflict of interest in detail sufficient for the public to understand the conflict (disclosure of an actual street address is not required);

2. Recuse themselves from discussing or voting; and

3. Leave the meeting room until after the discussion, vote, or other disposition of or decision on the item, unless the matter has been placed on the consent calendar of uncontested matters. An Advisory Group member stating such disqualification shall not be counted as a part of a necessary quorum and shall be considered to be absent for the purpose of determining the outcome of any vote on such matter.

Guidelines for the City of Santa Barbara Advisory Groups Page 19

2. Disqualification for Potential Conflict of Interest (Recusal) (cont’d).

3. Abstention on Continued Items.

Abstention procedures are established to ensure fair project reviews while maintaining consistent direction on projects from Advisory Groups. An Advisory Group member who was absent from a previous review meeting should only comment on a continued project if the member has subsequently thoroughly informed themselves of the previous board discussion and direction. A member may inform themselves of the prior discussion by reviewing the submitted plans, reading the minutes of the relevant portions of the missed meeting(s), or viewing the video(s) of the previous hearing(s). The amount of review necessary in order for a board member to properly inform themself of the prior discussion is a personal judgment and will depend upon the nature and complexity of the application and project under review. If an Advisory Group member has not fully informed themselves of what occurred during the prior reviews, the member should generally abstain from commenting, conditioning, or participating in the vote on the project. The member who decides to abstain due to a prior absence shall publicly state on the record the reason for the abstention immediately prior to the hearing of agenda item.

If a member abstains from participating in a review and a vote because the member missed a prior meeting, but remains present for the discussion and vote, the member’s presence counts toward the quorum.

4. Failure to vote.

Every Advisory Group member should vote unless disqualified by reason of a conflict of interest as described herein. A member who abstains from voting in effect consents that a majority of the quorum may decide the question voted upon. Advisory Group members should review all matters fairly and objectively
Guidelines for the City of Santa Barbara Advisory Groups Page 20

5. Attendance.

In order to conduct efficient meetings, best serve the public’s interest, and to avoid the loss of a quorum, regular attendance by all members is necessary. If an Advisory Group member cannot attend a scheduled meeting or must step down from a particular item due to conflict of interest, or will need to leave the meeting early, the member is asked to contact City staff at the earliest possible opportunity prior to the meeting date. The purpose for this staff notification is to ensure a minimum quorum of members is maintained for review of all items. Advisory Group members should stay for the duration of the meetings, in fairness to all applicants scheduled for that meeting.

6. Attempting to Influence a Governmental Decision.

The state Fair Political Practices Commission (FPPC) provides guidance on the requirements of the State’s Political Reform Act of 1974 and State regulations, and interpretations implementing the Political Reform Act which provide for some very narrow exceptions to the general rule that a member may not attempt to influence a governmental decision by participating in a decision when there is a conflict of interest. Advisory Group members are advised to consult the FPPC prior to taking any action which may implicate or pertain to possible state conflict of interest and disqualification requirements and may consult with the City Attorney’s Office in order to receive assistance in doing so.

Guidelines for the City of Santa Barbara Advisory Groups Page 21

EXHIBIT A

The State Political Reform Act’s conflict of interest provisions are intended to ensure that local public officials will perform their duties in an impartial manner, free from bias caused by their own financial interest. As a result, the Political Reform Act prohibits local public officials from “making, participating in making, or using their official position to influence a governmental decision in which they may have a financial interest.”
When a governmental decision is being made by the same board to which a local public official has been appointed, the official is attempting to use their official position to influence the decision of their own board if the official contacts other appointees or city employees in order to discuss the possible decision and does so in a manner which appears to be an attempt to influence the decision. Generally, such an official is also attempting to use their official position to influence a decision if they appear before their own board.

However, a narrow exception to these conflict provisions allow a local public official who is an architect, engineer, or similar design professional to make a presentation to their own board if the following limited circumstances apply:
a. The official is only presenting drawings or submissions of an architectural, engineering, or similar nature which the official themself has prepared for a client and they only explain the drawings or responds to questions about the drawings and only so long as the official does not advocate any specific board decision or otherwise attempt to influence or “participate” in a board decision related to the drawings and the official’s client; b. The board qualifies as a “design review committee” as that term is used by Title 2, California Code of Regulations, section 18702.4, subparagraph (b)(5), (and the opinions and decisions of the state Fair Political Practices Commission) such as the Santa Barbara ABR, HLC, or the SFDB.
c. The official is an architect, engineer, or a person in a related profession and he or she was appointed to the board to fulfill a legal requirement that the board contain an architect, engineer, or other similar professional in a related profession. d. The official is a “sole practitioner,” as that term is defined by Title 2, California Code of Regulations section 18702.4 (and in the opinions and decisions of the state Fair Political Practices Commission).

ACKNOWLEDGMENT OF RECEIPT OF GUIDELINES
This is to acknowledge that I have received a copy of the GUIDELINES FOR THE CITY OF SANTA BARBARA ADVISORY GROUPS, approved by the City Council on _____, and understand that it contains important information on the City's rules and regulations, and on my obligations and responsibilities as an Advisory Group member. I acknowledge that I am expected to read, understand, and adhere to City policies, and will familiarize myself with the provisions in the Guidelines. I understand that I am governed by the provisions in the Guidelines; and that the City may change, rescind or add to any policies or practices declared in the Guidelines from time to time in its sole and absolute discretion with or without prior notice. The City will advise Advisory Group members of substantive changes within a reasonable time. __________________________________________ _____________________ Appointee’s Signature Date
__________________________________________
Appointee’s Name (Typed or Printed)
This document shall be signed by the member and placed in the City Clerk’s file.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 29, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution]
RECOMMENDATION: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Downtown Community Benefit Improvement District Special Assessment on the 2025-2026 Parcel Tax Roll; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Coast Village Community Benefit Improvement District Special Assessment on the 2025- 2026 Parcel Tax Roll
DISCUSSION:

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

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

Agenda Item No. 7
File Code No. 290.00
Council Agenda Report
Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution] July 29, 2025

Page 2 ends

At the June 7, 2022 City Council meeting, Council adopted a resolution establishing the Coast Village CBID and levying the assessment in connection with the outined district. At the June 25, 2024, Council adopted a resolution establishing the Downtown CBID and levying the assessment. To assure that the assessments are collected on the tax roll and as part of the annual process to collect these assessments, a resolution requesting the assessment amounts for that specific fiscal year must be adopted by the City Council and a request must be sent to the County Board of Supervisors requesting the approved assessment amounts be included on the Parcel Tax Roll. The adoption of these resolutions is a ministerial action and does not allow for them to change any aspect of the CBID.

For Parcel Tax Roll 2025-2026, this will be the second year of the Downtown CBID. There is no increase proposed to the Non-Governmental parcels to be placed on the tax roll. The total amount is $1,695,715.03. The total amount for all parcels, including Governmental parcels, is $2,202,753.

For Parcel Tax Roll 2025-2026, this will be the fourth year for the Coast Village CBID. There is a 2.5% increase proposed to the Non-Governmental parcels to be placed on the tax roll.

The total amount is $315,726.52.

BUDGET/FINANCIAL INFORMATION:

There is no direct financial impact to the City of Santa Barbara with the adoption of these resolutions. However, as stated in the Downtown CBID Plan, the City would be assessed approximately $179,191.51 in Fiscal Year 2025-2026 for properties located in the Downtown CBID. These properties will be invoiced by the Downtown CBID third party administrator directly to the City of Santa Barbara.

ATTACHMENTS: 1. Downtown CBID Management Plan

2. Coast Village CBID Management Plan

PREPARED AND
SUBMITTED BY: Brandon Beaudette, Acting Library Director APPROVED BY: Kelly McAdoo, City Administrator

THE DOWNTOWN SANTA BARBARA

COMMUNITY BENEFIT IMPROVEMENT DISTRICT

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

Prepared for:

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

New City America, Inc.

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

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

1. Management District Plan Summary 3

2. Downtown Santa Barbara CBID Boundaries 11

3. District Improvement and Activity Plan 18

4. Assessment Methodology 23

5. District Rules, Regulations and Governance 34

6. Implementation Timetable 34

7. Assessment Roll of Properties Included 35

Attachment:

A. Engineer’s Report

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

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

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

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

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

The meeting dates of the Steering Committee included the following:

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

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

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

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

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

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

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

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

MOST IMPORTANTLY, THESE PROPERTY ASSESSMENT FUNDS WILL NOT REPLACE EXISTING

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

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

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

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

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

CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION

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

EXHIBIT A

DISTRICT IDENTITY AND PLACEMAKING

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

ADMINISTRATION/PROGRAM MANAGEMENT

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

CONTINGENCY/CITY AND COUNTY FEES/RESERVE

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

EXHIBIT A

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

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

First Year Annual Costs Per Benefit Zone

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

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

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

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

Boundaries:

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

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

2. whether the parcels are publicly owned and

3. if the parcel is a single residential condominium.

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

Zone 1: Core Area:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Section 2 Downtown Santa Barbara Community Benefit Improvement District Boundaries

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

Zone 1: Core Area:

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

Benefit Zones
The district consists of two benefit zones.

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

ZONE 1

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

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

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

Zone 1 Eastern Boundary:

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

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

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

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

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Section 3
District Improvement and Activity Plan

Explanation of Special Benefit Services

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

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

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

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

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

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

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

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

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

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

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

Property Data by Benefit Zone

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

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

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

Proposed First Year Downtown Santa Barbara District CBID Budget

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. The parcel-by-parcel allocation method

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

3. The composite district overlay determinant method.

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

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

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Total Year 1 – 2024 Special + General Benefit Costs

Category of Special
Benefit Services

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

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

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

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

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Explanation of Difference in Benefit Zone Assessments:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A

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

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

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

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

TOTAL PARCEL ASSESSMENT

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

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

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

Maximum Annual Assessment Adjustments:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A
ATTACHMENT 1

THE DOWNTOWN SANTA BARBARA

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

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

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

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

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

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

April 4, 2024
3/31/26

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

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

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

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

The DSB CBID is generally bounded by:

Zone 1: Core Area:

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

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

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

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

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

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

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

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

Southeastern (“Southern”) Boundary:

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

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

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

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

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

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

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A

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

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

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

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

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

EXHIBIT A

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

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

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

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

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

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

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

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

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

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

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

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

CIVIL SIDEWALKS/SAFETY & CLEANLINESS/BEAUTIFICATION:

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

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

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A
Special Assessment Circumstances

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

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

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

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

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

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

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

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

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

Year 1 – 2025 - Assessable Benefit Units

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

FRONTAGE
(LF)
RESID
CONDO

BLDG AREA
(SF)
# of

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

EXHIBIT A
Year 1 – 2025 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE

RESID CONDO

BLDG AREA

REVENUE
TOTAL

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

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

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

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

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

YEAR 1 –2025 Assessment Rates

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

FRONTAGE
ASSMT
RATE
($/LF)
RESID
CONDO

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

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

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

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

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

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

YEAR &

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

FRONTAGE
ASSMT
RATE
($/LF)
RESID
CONDO

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

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

Miscellaneous DSB CBID Provisions
Time and Manner of Collecting Assessments:

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

Bonds:

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

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

EXHIBIT A
APPENDIX 1

DSB CBID
YEAR 1 – 2025

ASSESSMENT ROLL

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

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

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

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

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

EXHIBIT A
APPENDIX 2

DSB CBID BOUNDARY MAP

EXHIBIT A

EXHIBIT A
1 THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

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

Prepared for the:

The Coast Village Association
City of Santa Barbara
Prepared by:

New City America, Inc.

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

Attachment 2
2 Section Number

1. Management District Plan Summary 3

2. Coast Village CBID Boundaries 9

3. District Improvement and Activity Plan 11

4. Assessment Methodology 17

5. District Rules, Regulations and Governance 26

6. Implementation Timetable 26

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Broken down by benefit zone:

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

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

Boundaries:

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

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

Costs:

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

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

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

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

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

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

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

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

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

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

Benefit Zones
The District consists of two benefit zones.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Data broken down by benefit zone:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Residential
Condo/Apt.

Bldg.

Sq. Ft.

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

Residential
Condo/Apt Bldg.

Sq. Ft.

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

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

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

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

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

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

THE COAST VILLAGE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

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

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

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

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

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

Empirical assessment engineering analysis throughout California has found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for the CVCBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the CVCBID, general benefit to the public at large within the CVCBID and general benefit to parcels outside the CVCBID.
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General Benefit – Assessed Parcels within the CVCBID
CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 115 parcels within the CVCBID are distinct and special but in the case of the CVCBID, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the CVCBID funded programs and services are specially geared to the unique needs of each parcel within the CVCBID and are directed specially only to these parcels within the CVCBID. This concept is further reinforced by COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
7 the proportionality of special benefits conferred on each parcel within the CVCBID as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 115 parcels within the CVCBID equates to $748 or (.25% x $296,749).

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

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

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

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

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

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

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

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

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

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

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

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

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

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

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

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

CIVIL SIDEWALKS:

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

Examples of this category of special benefit services and costs may include, but are not limited to:
• Web site development and updating
• Social media, public relations firm
• Holiday and seasonal decorations
• Events such as the Taste of Coast Village
• Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
• Refurbishment of street signs and monuments

CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins
• In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road • Facilitating valet services for busy nights in Coast Village Road • Rental of parking lots for convenient parking for visitors on the weekends or busy holidays
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
14 ADMINISTRATION & PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
• Staff and administrative costs, contracted or in-house • Directors and Officers and General Liability Insurance • Office related expenses
• Rent
• Financial reporting and accounting
• Legal work

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

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

CVCBID Year 1 - Special Benefit Assessment Budget by Zone

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 40.4382% 27.9698% 18.1972% 10.1096% 3.2853% 100%
1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967 87.9418% 2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782 12.0582% TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749 100.00% In order to carry out the CVCBID programs outlined in the previous section, a Year 1 assessment budget of $296,749 is projected. Since the CVCBID is planned for a 5-year term, projected program costs for COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
15 future years (Years 2-5) are set at the inception of the CVCBID. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year CVCBID term.

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

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

YEARS 1-5 PROJECTED CVCBID ASSESSMENT BUDGET SUMMARY (Special Benefits) (Assumes 5% max rate increase per year)

YEAR

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL
% 40.4382% 27.9698% 18.1972% 10.1096% 3.29% 100.00%
1 1 $105,530 $72,992 $47,489 $26,383 $8,573 $260,967
2 $14,470 $10,008 $6,511 $3,617 $1,176 $35,782
TOTAL $120,000 $83,000 $54,000 $30,000 $9,749 $296,749
2 1 $110,807 $76,642 $49,863 $27,702 $9,002 $274,016
2 $15,194 $10,508 $6,837 $3,798 $1,235 $37,572
TOTAL $126,001 $87,150 $56,700 $31,500 $10,237 $311,588 3 1 $116,347 $80,474 $52,356 $29,087 $9,452 $287,716
2 $15,954 $11,033 $7,179 $3,988 $1,297 $39,451
TOTAL $132,301 $91,507 $59,535 $33,075 $10,749 $327,167 4 1 $122,164 $84,498 $54,974 $30,541 $9,925 $302,102
2 $16,752 $11,585 $7,538 $4,187 $1,362 $41,424
TOTAL $138,916 $96,083 $62,512 $34,728 $11,287 $343,526 5 1 $128,272 $88,723 $57,723 $32,068 $10,421 $317,207
2 $17,590 $12,164 $7,915 $4,396 $1,430 $43,495
TOTAL $145,862 $100,887 $65,638 $36,464 $11,851 $360,702 COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
16 The CVCBID assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of Santa Barbara City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the CVCBID) shall determine the percentage increase, if any, to the annual assessment, not to exceed 5% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the CVCBID operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Santa Barbara. No bonds are to be issued in conjunction with the proposed CVCBID.

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

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

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

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

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”
Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are currently no publicly owned parcels within the boundaries of the proposed CVCBID. In, the future, should any other parcels be acquired by a public agency, it is the opinion of this Assessment Engineer that there is no clear and convincing evidence that such parcels would not receive special benefits and thus, would not be exempt from assessments nor assessed differently than privately owned parcels.

Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

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

Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.”
The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Management District Plan and this Report. The proposed CVCBID and resultant assessment levies will continue for 5 years and may be renewed again at that time. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each CVCBID assessed parcel within two benefit zones, except as noted herein.

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

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

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

CVCBID Assessment Formula
Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. civil sidewalks, district identity & placemaking, capital improvements & traffic management, administration & program management and contingency & reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage (excluding public alleys) of each parcel within two benefit zones, except as noted herein.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
19 The “Basic Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”), and in the case of residential condo parcels, building square footage (Benefit Unit “D”). Based on the shape of the proposed CVCBID, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage within two benefit zones, except as noted herein.

In the opinion of this Assessment Engineer, the targeted weight of Zone 1 revenue to match the projected costs of Zone 1 services, should generate approximately 90% of the total CVCBID revenue (87.9418% when adjusted for precise parcel measurements and program costs and service levels).

In the opinion of this Assessment Engineer, the targeted weight of Zone B revenue to match the projected costs of Zone B services, should generate approximately 10% of the total CVCBID revenue (12.0582% when adjusted for precise parcel measurements and program costs and service levels).

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

Building area (Benefit Unit A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on CVCBID funded activities. The combined weight of Units A & D is

33.808625%. Unit A will generate 27.24996% of the overall assessment revenue. Unit D will generate

6.504689% of the overall assessment revenue
Land area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on CVCBID funded activities. Unit B will generate

40.670852% of the overall assessment revenue.

Street frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on CVCBID funded activities. Unit C will generate 25.520521% of the overall assessment revenue.

Special Assessment Circumstances

1. Internal Structured Parking Building Area
It is the opinion of this Assessment Engineer that building area for private parking within a building shall not be assessed. Public parking, whether internal or external, will be assessed for the building area of such parking as well as the underlying parcel land area and street frontage.

2. Residential Condominiums
There are currently 45 residential condominium units within the CVCBID. It is the opinion of this Assessment Engineer that these residential condominium parcels will proportionately specially benefit from CVCBID funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
20 3. Multi-Unit Residential (rental)
In the opinion of this Engineer, parcels with multi-unit residential uses (currently 2) within the proposed CVCBID), will proportionately specially benefit from CVCBID funded programs, services and improvements but different than commercial parcels and uses. In the opinion of this Engineer, the level of benefit for the proposed CVCBID funded programs, services and improvements for multi-unit residential use parcels shall be based on the reduced building rate applied to residential condominiums but the same as the respective zone rates of commercial parcels and uses for parcel land area and street frontage.

4. Commercial and Mixed-Use Condominiums
Ground floor commercial condominiums within the CVCBID shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows:

Multi-Floor Commercial Only Condominiums (Upper Floors) - Building area assessed at respective building area rate Multi-Floor Mixed-Use Condominiums
- Commercial condo (See # 5 above)
- Residential condo (See # 2 above)
Changes to Building and/or Parcel Size
Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments.

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

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

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
21 Year 1 - Assessable Benefit Units

BENEFIT
ZONE

BLDG AREA
(SQ FT)

LAND AREA
(SQ FT)
STREET

FRONTAGE
(LN FT)
RESID
CONDO

BLDG AREA
(SQ FT)
# of

PARCELS
1 394,680 1,063,657 8,085 157,322 104
2 70,155 238,747 1,842 4,868 11
TOTAL 464,835 1,302,404 9,927 162,190 115
Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative assessment revenue by factor and zone are shown in the following Table:

Year 1 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE
RESID
CONDO

BLDG AREA

REVENUE
TOTAL
REVENUE %
1 $71,042.40 $106,365.70 $64,680.00 $18,878.64 $260,966.74 87.9418% 2 $9,821.70 $14,324.82 $11,052.00 $584.16 $35,782.68 12.0582% TOTAL $80,864.10 $120,690.52 $75,732.00 $19,462.80 $296,749.42 100.00% 1 23.940198% 35.843608% 21.796167% 6.361812% 87.9418%
2 3.309762% 4.827244% 3.724354% 0.196853% 12.0582%
TOTAL 27.249960% 40.670852% 25.520521% 6.558665% 100.0000% Step 3. Calculate Benefit Units for Each Property.

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

Step 4. Determine Assessment Formula
In the opinion of this Engineer, the assessment formula for the proposed CVCBID is as follows:

Assessment = Building Area (Unit A) Sq Ft x Unit A Rate, plus Land Area (Unit B) Sq Ft x Unit B Rate, plus
Street Frontage (Unit C) Lin Ft x Unit C Rate
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
22 or
= Residential Condo Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates
Based on figures from the Assessable Benefit Units Table on page 21, the assessment rates for each factor and zone are shown as calculated in the Table below:

YEAR 1 - Assessment Rates

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)

RESID CONDO

BLDG AREA

ASSMT RATE
($/SQ FT)
1 $0.1800 $0.1000 $8.0000 $0.1200
2 $0.1400 $0.0600 $6.0000 $0.1200
The complete Year 1 assessment roll of all parcels to be assessed by the CVCBID is included in this Plan as Appendix I.

Step 5. Estimate Total CVCBID Costs
The total projected 5-year CVCBID special benefit costs are shown in the Table on page 15 of this Report assuming a maximum 5% increase per year.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $302,805. Districtwide general benefits are factored at 2% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit value is computed to be $6.056 with a resultant 98% special benefit limit computed at $296,749. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All program costs associated with district wide and site/activity specific general benefits will be derived from sources other than CVCBID assessments.

Step 7. Calculate “Basic Unit Cost”
With a YR 1 assessment revenue portion of the budget set at $296,749 (special benefit only), the Basic Unit Costs (rates) are shown earlier in Step 4. Since the CVCBID is proposed for a 5-year term, maximum assessments for future years must be set at the inception of the proposed CVCBID. An annual inflationary assessment rate increase of up to 5%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the CVCBID Property Owner’s Association.

The maximum assessment rates for the 5-year proposed CVCBID term of are shown in the Table below.

The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the proposed CVCBID term.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
23 CVCBID – 5-year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)
RESID

CONDO BLDG

AREA ASSMT
RATE ($/SQ
FT)
YEAR 1
1 $0.1800 $0.1000 $8.0000 $0.1200
2 $0.1400 $0.0600 $6.0000 $0.1200
YEAR 2
1 $0.1890 $0.1050 $8.4000 $0.1260
2 $0.1470 $0.0630 $6.3000 $0.1260
YEAR 3
1 $0.1985 $0.1103 $8.8200 $0.1323
2 $0.1544 $0.0662 $6.6150 $0.1323
YEAR 4
1 $0.2084 $0.1158 $9.2610 $0.1389
2 $0.1621 $0.0695 $6.9458 $0.1389
YEAR 5
1 $0.2188 $0.1216 $9.7241 $0.1458
2 $0.1702 $0.0730 $7.2931 $0.1458
Step 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the CVCBID are shown in the Management District and this Report and were determined by applying the CVCBID assessment formula to each identified benefiting property.

Miscellaneous CVCBID Provisions
Time and Manner of Collecting Assessments:

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

Bonds:

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

Duration
As allowed by the Ordinance, the CVCBID will have a five (5) year operational term.

COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
24 APPENDIX 1
CVCBID
YEAR 1

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

CVCBID BOUNDARY MAP
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
27 RESOLUTION NO.____________

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA REQUESTING THE BOARD OF SUPERVISORS OF

SANTA BARBARA COUNTY TO INCLUDE THE DOWNTOWN

COMMUNITY BENEFIT IMPROVEMENT DISTRICT SPECIAL
ASSESSMENT ON THE 2025-2026 PARCEL TAX ROLL
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (the “CBID Ordinance”) authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (the “State Law”) except to the extent the provisions of the State Law are inconsistent with the provisions of the CBID Ordinance; and
WHEREAS, on April 16, 2024, in response to a petition by property owners that satisfied the requirements of the CBID Ordinance, the City Council adopted Resolution No 24-037 (“Resolution of Intention”), declaring the intention of the City Council to establish the Downtown Community Benefit Improvement District (“District”) pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District (“Assessment”); and
WHEREAS, on June 25, 2024, a public hearing was conducted in accordance with California Constitution article XIIID (Proposition 218) and applicable law and after the public hearing the City Council found and declared a majority protest against the District and the Assessment did not exist, and the City Council adopted Resolution No 24-079 forming the District and levying assessments pursuant to the CBID Ordinance.

WHEREAS, the initial term of the District is proposed to run for five years, beginning in Fiscal Year 2024-25 and running through Fiscal Year 2028-2029. The District will terminate on June 30, 2029, unless renewed pursuant to the CBID Ordinance.

NOW THEREFORE, the City of Santa Barbara City Council hereby resolves the following:

1. The above recitals are true and correct.

2. Street and Highways Code section 36631 authorizes the District to provide for the collection of the District Assessment in the same manner and subject to the same penalties as, or with, other charges and taxes fixed and collected by the Santa Barbara County.

3. An assessment is proposed to be levied annually against real property in the District. Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax. The rate of the proposed assessment is set forth in the MOP, particularly in the rate table set forth on page 24 of the MOP. The total amount of the assessment for Fiscal Year 2025-26 is proposed to be $2,202,753.

4. The City, on behalf of the District, will comply or has complied with all requirements set forth in correspondence from the Auditor-Controller including executing an agreement to place the Special Assessment Tax on the tax roll and submitting the Fixed Charge Data file in the specified format. The City Clerk or designee is hereby requested to deliver a copy of this Resolution to the County Auditor.

RESOLUTION NO.____________

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA REQUESTING THE BOARD OF SUPERVISORS OF

SANTA BARBARA COUNTY TO INCLUDE THE COAST VILLAGE

COMMUNITY BENEFIT IMPROVEMENT DISTRICT SPECIAL
ASSESSMENT ON THE 2025-2026 PARCEL TAX ROLL
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (the “CBID Ordinance”) authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (the “State Law”) except to the extent the provisions of the State Law are inconsistent with the provisions of the CBID Ordinance; and
WHEREAS, on March 29, 2022 in response to a petition by property owners that satisfied the requirements of the CBID Ordinance, the City Council adopted Resolution No 22,023 (“Resolution of Intention”), declaring the intention of the City Council to establish the Coast Village Community Benefit Improvement District (“District”) pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District (“Assessment”); and
WHEREAS, on June 7, 2022, a public hearing was conducted in accordance with California Constitution article XIIID (Proposition 218) and applicable law and after the public hearing the City Council found and declared a majority protest against the District and the Assessment did not exist and adopted Resolution No 22-049 forming the District and levying assessments pursuant to the CBID Ordinance.

WHEREAS, the initial term of the District is proposed to run for five years, beginning in Fiscal Year 2022-23 and running through Fiscal Year 2026-2027. The District will terminate on June 30, 2027, unless renewed pursuant to the CBID Ordinance.

NOW THEREFORE, the City of Santa Barbara City Council hereby resolves the following:

1. The above recitals are true and correct.

3. An assessment will be levied annually against real property in the District.

Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax. The rate of the proposed assessment is set forth in the MOP, particularly in the rate table set forth on page 24 of the MOP. The total amount of the assessment for Fiscal Year 2025-26 is $315,726.52.

4. The City, on behalf of the District, will comply or have complied with all requirements set forth in correspondence from the Auditor-Controller including executing an agreement to place the assessment on the tax roll and submitting the Fixed Charge Data file in the specified format. The City Clerk or designee is hereby requested to deliver a copy of this Resolution to the County Auditor.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: July 29, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Authorize a Memorandum of Understanding with the Santa Barbara County Association of Governments for the Santa Barbara Eastside Active Transportation Improvements Project [Resolution; Agreement] RECOMMENDATION: That Council:

A. Authorize the City Administrator to execute the Memorandum of Understanding between the Santa Barbara County Association of Governments and the City of Santa Barbara for the pre-construction phases of the Santa Barbara Eastside Active Transportation Improvements Project; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-066, Adopting the Budget for Fiscal Year 2026, to Appropriate Funds for the Pre-Construction Phases of the Santa Barbara Eastside Active Transportation Improvements Project.

EXECUTIVE SUMMARY:

On June 26, 2025, the California Transportation Commission awarded Santa Barbara County Association of Governments (SBCAG) and Caltrans with a Senate Bill 1 (SB 1) grant in the amount of $134 million to support the completion of the U.S. 101 (Highway 101) Multimodal Corridor Project through Santa Barbara. The funding recommendation will complete the final Highway 101: Santa Barbara (North) segment and provide funding for several multimodal improvements including the Cabrillo Boulevard Rail, Bicycle, and Pedestrian Improvements and the Eastside Active Transportation Projects. Specifically, the SB 1 grant allocated $8,755,000 towards constructing the Santa Barbara Eastside Active Transportation Improvements Project (Project).

Staff recommend that Council authorize the City Administrator to execute a Memorandum of Understanding (MOU) with SBCAG to fund the design of the Project. Construction of the Project is expected to begin in the fall of 2027. The MOU will be amended to include construction funding prior to bidding.

Agenda Item No. 8
File Code No. 670.08
Council Agenda Report
Authorize a Memorandum of Understanding with the Santa Barbara County Association of Governments for the Santa Barbara Eastside Active Transportation Improvements Project [Resolution; Agreement]
July 29, 2025

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Santa Barbara City CouncilJuly 29, 2025

Santa Barbara City Council
July 29, 2025