Santa Barbara City Council
October 14, 2025

ATTACHMENT 1
Hourly Rate Classes
Effective 10/04/2025
Revised 10/14/2025
MUNIS 17 MUNIS 18 Hourly Rate
7045 8037 Grounds Maintenance Worker II $30.0995
7046 8038 Heavy Equipment Tech $39.6991
7047 8039 Housing Programs Specialist $47.5073
7411 8322 Housing Project Planner $50.9429
7048 N/A Human Resources Analyst II $53.5481
7416 8325 Human Resources Technician $39.5017
7023 8017 Information Technology Technician I $33.1746
7024 8018 Information Technology Technician II $36.1100 7049 N/A Law Clerk $36.7439
7465 8368 Lead Equipment Technician $43.8634
7050 N/A Legal Administrative Assistant I $31.4801
7051 N/A Legal Administrative Assistant II $38.0492
7052 8040 Librarian I $36.3345
7053 8041 Librarian II $39.9462
7054 8042 Library Assistant I $27.2324
7055 8043 Library Assistant II $28.3410
7057 8045 Library Systems Technician I $33.1746
7056 8044 Library Technician $30.2391
7005 N/A Litigation Paralegal $38.8162
7058 8046 Mail Services Specialist $23.1656
7061 8049 Maintenance Crew Leader $35.5748
7059 8047 Maintenance Worker I $25.5956
7060 8048 Maintenance Worker II $30.1750
7417 8326 Marketing Coordinator $44.7474
7022 8016 Network Analyst $49.3362
7063 8051 Office Specialist I $23.7504
7064 8052 Office Specialist II $26.1115
7067 8055 Outreach Coordinator $41.5220
7066 8054 Painter $35.6872
7068 8056 Parking Coordinator $38.1464
7072 8060 Planning Technician I $36.4719
7071 8059 Planning Technician II $39.5017
7073 8061 Plumber $37.8242
7070 8058 Project Engineer I $52.2110
7075 8063 Project Engineer II $57.4007
7077 8065 Project Planner $50.9429
7078 8066 Public Works Inspector I $38.6238
7397 8310 Real Property Agent $47.2710
7080 8068 Records Technician $30.1750
7382 8306 Recreation Coordinator $35.6343
7082 8070 Recreation Program Leader $25.2151
7083 8071 Recreation Specialist $29.4819
7081 8069 Recycling Educator $36.1100
7084 8072 Rental Housing Mediation Specialist $39.1096
7085 N/A Risk Analyst II $53.5481
7091 8078 Senior Commission Secretary $35.1313
7086 8073 Senior Custodian $27.0389
7035 8028 Senior Electronics/Communications Technician $44.0977 7033 8027 Senior Engineering Technician $42.0641
7087 8074 Senior Grounds Maintenance Worker $31.3247
7088 8075 Senior Library Technician $33.0796
7089 8076 Senior Maintenance Worker $33.8442
7076 8064 Senior Network/Applications Analyst $53.2531
7455 8358 Senior Plan Check Engineer $59.2481
7380 8303 Senior Plans Examiner $53.6234
7090 8077 Senior Real Property Agent $54.3553
7092 8079 Stock Clerk $26.6375
7094 8081 Survey Technician I $33.5070
7093 8080 Survey Technician II $36.4719
7096 8083 Traffic Technician I $33.1746
7097 8084 Traffic Technician II $36.4719
7100 8087 Transportation Engineering Associate $48.2231 7098 8085 Tree Trimmer I $27.4468
7099 8086 Tree Trimmer II $30.7828
7101 8088 Vehicle Services Assistant $27.1743
7104 8091 Water Resources Specialist $46.1070
7379 8304 Water Resources Technician $36.1100
7102 8089 Welder/Fabricator $36.3448
Hourly Assignment to "Regular" Classes

ATTACHMENT 1
Hourly Rate Classes
Effective 10/04/2025
Revised 10/14/2025
MUNIS 17 MUNIS 18 Range
7006 8003 Airport Operations Specialist $36.3867
7462 8366 Airport Police Officer $52.0269
7463 8367 Airport Police Officer II $56.9533
7352 8287 Harbor Patrol Officer $49.3196
7354 8289 Lab Analyst I $42.4675
7069 8057 Park Ranger $39.6598
7356 8291 Treatment Plant Technician $44.7897
7349 8284 Wastewater Treatment Plant OIT $36.1423
7350 8285 Wastewater Treatment Plant Operator III $50.4552 7351 8286 Water Distribution Operator Technician II $48.5386 7458 8360 Water Meter Technician II $44.1276
7355 8290 Water Treatment Plant OIT $36.1434
7353 8288 Water Treatment Plant Operator II $45.4677
7450 8354 Water Treatment Plant Operator III $50.4528
MUNIS 17 MUNIS 18 Range
7390 N/A Police Chief $127.2939 - $154.7269
MUNIS 17 MUNIS 18 Range
7357 N/A Police Lieutenant $80.4677 - $97.8090
7466 N/A Assistant Police Chief $106.4237 - $129.3587
MUNIS 17 MUNIS 18 Range
7359 N/A Police Officer $54.3506
7361 N/A Police Officer- Entry $49.1104
MUNIS 17 MUNIS 18 Range
7464 N/A Administrative Polygraph Examiner $101.8500
7227 N/A Background Investigator $51.8805
7388 N/A EMD Dispatcher $46.2137
7395 N/A Identification Technician $43.5312
7360 N/A Parking Enforcement Officer $30.3647
7358 N/A Public Safety Dispatcher II $36.2095
7362 N/A Police Property/Evidence Assistant $30.7022
7391 N/A Police Property/Evidence Technician $36.1954
7363 N/A Police Records Specialist $30.1545
7364 N/A Police Technician $28.9188
MUNIS 17 MUNIS 18 Range
7432 N/A Fire Inspector II $50.9979
19 SBCEA Treatment & Patrol
21 Police Chief
Hourly Assignment to "Regular" Classes
23 Police Management
24 Police Sworn
39 Fire Non-Sworn
29 Police Non-Sworn

ATTACHMENT 1
Hourly Rate Classes
Effective 10/04/2025
Revised 10/14/2025
MUNIS 17 MUNIS 18 Classification Department Hourly Rate 7461 8363 Administrative Investigator Human Resources $68.24 7220 N/A Airport Marketing Assistant Airport $18.51
7219 8205 Airport Operations Intern Airport $17.47
7394 8309 Airport Services Coordinator Airport $36.51
7221 8206 Airport Traffic Aide Airport $17.47
7218 8204 Alternative Transportation Planner Public Works $45.06 7396 N/A ARCON Instructor Police $53.37
7225 N/A Assistant PAL Coordinator I Police $17.47
7222 N/A Assistant PAL Coordinator II Police $20.51
7224 8207 Assistant Park Planner Parks & Recreation $26.39 7223 N/A Assistant to Council I City Council $17.47
7270 N/A Assistant to Council II City Council $17.92
7271 N/A Assistant to Council III City Council $20.51
7226 8208 Automotive Parts Aide Public Works $21.58
7145 8132 Beach Lifeguard I Parks & Recreation $24.59
7146 8133 Beach Lifeguard II Parks & Recreation $25.82
7147 8134 Beach Lifeguard III Parks & Recreation $27.11 7228 8209 Cannoneer Waterfront $25.19
7229 N/A CAO Special Projects Manager CAO $64.28
7240 N/A CAO Intern CAO $17.47
7243 N/A City Council Intern City Council $17.47
7425 8334 City Programs Intern I Various $17.91
7426 8335 City Programs Intern II Various $20.29
7427 8336 City Programs Intern III Various $22.67
7428 8337 City Programs Intern IV Various $23.87
7429 8338 City Programs Intern V Various $26.25
7430 8339 City Programs Intern VI Various $27.45
7431 8340 City Programs Intern VII Various $29.85
7253 8222 City TV Production Aid Lead Admin Services $20.07 7251 8220 City TV Production Aide I Admin Services $17.47 7252 8221 City TV Production Aide II Admin Services $19.21 7250 8219 City TV Production Intern Admin Services $17.47 7135 8122 Clerical Assistant Various $17.47
7234 8211 Commercial Driver Trainer Public Works $30.61 7217 N/A Community Services Liaison Police $19.69
7384 N/A Community Services Officer Police $26.21
7235 8212 Creeks Resources Technician Parks & Recreation $30.01 7236 8213 Database Specialist Public Works $23.51
7237 N/A Development Manager Library $38.31
7238 N/A Dispatch Training Coordinator Police $51.01
7239 8214 Diver Waterfront $25.19
7399 8311 Downtown Ambassador I Public Works $20.75
7400 8312 Downtown Ambassador II Public Works $23.62
7451 8355 Downtown Ambassador III Public Works $27.13
7413 N/A Elections Advisor Admin Services $121.06
7412 N/A Elections Assistant Admin Services $28.83
7392 N/A EMD Auditor Police $58.56
7275 N/A EMS Nurse Educator Fire $93.15
7245 8215 Extension Aide Library $20.37
7246 N/A Facilities Project Manager Public Works $41.81 7436 8344 Facility Monitor I - Weekday Parks & Recreation $23.36 7437 8345 Facility Monitor II - Weekday Parks & Recreation $24.53 7438 8346 Facility Monitor III - Weekday Parks & Recreation $25.75 7381 N/A Financial Systems Analyst Admin Services $58.81 7247 8216 Fire Public Education Assistant Fire $18.31
7231 N/A Fire Service Mutual Aide Specialist I Fire $42.97 7232 N/A Fire Service Mutual Aide Specialist II Fire $59.27 7230 N/A Fire Special Projects Manager Fire $55.71
7248 8217 GIS Mapping Technician Fire $21.58
7249 8218 Golf Course Maintenance Worker Parks & Recreation $17.47 7254 8223 Grounds Maintenance Assistant I Parks & Recreation $22.21 7255 8224 Grounds Maintenance Assistant II Parks & Recreation $24.04 7306 8260 Harbor Patrol Crew I Waterfront $17.47
7307 8261 Harbor Patrol Crew II Waterfront $18.17
7308 8262 Harbor Patrol Crew III Waterfront $19.08
7309 8263 Harbor Patrol Crew IV Waterfront $19.98
7310 8264 Harbor Patrol Crew V Waterfront $20.89
7311 8265 Harbor Patrol Crew VI Waterfront $21.79
7312 8266 Harbor Patrol Crew VII Waterfront $22.70
7313 8267 Harbor Patrol Crew VIII Waterfront $23.59
7314 8268 Harbor Patrol Crew IX Waterfront $24.49
7315 8269 Harbor Patrol Crew X Waterfront $25.41
7316 8270 Harbor Patrol Crew XI Waterfront $26.29
Hourly Rate Schedule (Limited Term)

ATTACHMENT 1
Hourly Rate Classes
Effective 10/04/2025
Revised 10/14/2025
MUNIS 17 MUNIS 18 Classification Department Hourly Rate 7187 8174 Head Beach Lifeguard I Parks & Recreation $31.08 7188 8175 Head Beach Lifeguard II Parks & Recreation $32.64 7189 8176 Head Beach Lifeguard III Parks & Recreation $34.27 7296 N/A Human Resources Specialist Admin Services $30.15 7433 8341 Inclusion Specialist I Parks & Recreation $24.99 7434 8342 Inclusion Specialist II Parks & Recreation $26.24 7435 8343 Inclusion Specialist III Parks & Recreation $27.55 7383 8305 Information Systems Intern Admin Services $17.47 7256 N/A Internal Affairs Investigator Police $47.16
7105 8092 Job Apprentice I Parks & Recreation $17.47
7151 8138 Junior Lifeguard Instructor I Parks & Recreation $24.59 7152 8139 Junior Lifeguard Instructor II Parks & Recreation $25.82 7153 8140 Junior Lifeguard Instructor III Parks & Recreation $27.11 7192 8179 Junior Lifeguard Program Director I Parks & Recreation $31.08 7193 8180 Junior Lifeguard Program Director II Parks & Recreation $32.64 7194 8181 Junior Lifeguard Program Director III Parks & Recreation $34.27 7257 8225 Library Building Monitor Library $23.98
7280 8243 Library Volunteer Coordinator Library $21.58
7262 8230 Lot Operator Public Works $17.99
7265 8234 Management Intern Various $17.47
7274 8239 Management Intern IV Various $19.21
7268 8236 Marketing Assistant I Airport $17.47
7269 8237 Marketing Assistant II Airport $23.71
7272 N/A Mayor's Aide City Council $28.12
7330 8302 Meter Reader Public Works $26.04
7279 8242 Page Library $17.47
7281 N/A Parking Citation Admin Review Officer Police $49.28 7402 8313 Parking Coordinator Aide I Various $19.69
7403 8314 Parking Coordinator Aide II Various $21.93
7404 8315 Parking Coordinator Aide III Various $24.19
7418 8327 Parking Lead I Various $18.57
7419 8328 Parking Lead II Various $19.12
7423 8332 Parking Monitor I Various $17.99
7424 8333 Parking Monitor II Various $18.57
7288 N/A Parks Project Manager Parks & Recreation $55.19 7442 8350 Park Ranger Assistant III Parks & Recreation $21.53 7282 8244 Planning Intern I Community Development $17.96 7283 8245 Planning Intern II Community Development $20.96 7284 N/A Police Cadet I Police $20.24
7285 N/A Police Cadet II Police $21.93
7401 N/A Police Project Manager Police $53.37
7124 8111 Pool Lifeguard Parks & Recreation $24.59
7125 8112 Pool Lifeguard II Parks & Recreation $25.82
7126 8113 Pool Lifeguard III Parks & Recreation $27.11
7289 8364 Project Manager I Public Works $49.95
7290 8365 Project Manager II Public Works $63.93
7291 8248 Public Information Assistant Public Works $17.47 7119 8106 Recreation Assistant I Parks & Recreation $17.47 7120 8107 Recreation Assistant II Parks & Recreation $17.56 7121 8108 Recreation Assistant III Parks & Recreation $18.43 7162 8149 Recreation Leader I Parks & Recreation $23.36 7163 8150 Recreation Leader II Parks & Recreation $24.53 7164 8151 Recreation Leader III Parks & Recreation $25.75 7172 8159 Recreation Program Director I Parks & Recreation $28.26 7173 8160 Recreation Program Director II Parks & Recreation $29.67 7174 8161 Recreation Program Director III Parks & Recreation $31.15 7376 8298 Recreation Therapist/Nurse I Parks & Recreation $31.72 7377 8299 Recreation Therapist/Nurse II Parks & Recreation $56.51 7292 8249 Rental Mediation Aide I Community Development $17.47 7293 8250 Rental Mediation Aide II Community Development $24.37 7294 8251 Rental Mediation Aide III Community Development $28.23 7393 N/A Restorative Court Liaison Police $26.48
7295 N/A Restorative Outreach Specialist Police $24.34
7297 8252 School Crossing Guard I Police $21.84
7298 8253 School Crossing Guard II Police $22.94
Hourly Rate Schedule (Limited Term)

ATTACHMENT 1
Hourly Rate Classes
Effective 10/04/2025
Revised 10/14/2025
MUNIS 17 MUNIS 18 Classification Department Hourly Rate 7167 8154 Senior Pool Lifeguard I Parks & Recreation $27.53 7168 8155 Senior Pool Lifeguard II Parks & Recreation $28.90 7169 8156 Senior Pool Lifeguard III Parks & Recreation $30.35 7398 N/A SNAP Officer Police $26.21
7453 8357 Special Investigator I City Attorney $62.84
7460 8362 Special Investigator II City Attorney $65.35
7299 8254 Standby Diver Waterfront $19.17
7140 8127 Swim Instructor I Parks & Recreation $25.56
7141 8128 Swim Instructor II Parks & Recreation $26.84
7459 8361 Swim Instructor III Parks & Recreation $28.18 7301 8256 Traffic Counter Public Works $17.47
7303 N/A Traffic Engineer Public Works $88.39
7304 8258 Utility Worker I Public Works $23.14
7305 8259 Utility Worker II Public Works $25.94
7405 8316 Waterfront Facilities Aide I Waterfront $20.82 7406 8317 Waterfront Facilities Aide II Waterfront $21.40 7407 8318 Waterfront Facilities Aide III Waterfront $22.01 7408 8319 Waterfront Facilities Aide IV Waterfront $22.59 7420 8329 Waterfront Parking Lot Operator I Waterfront $17.47 7421 8330 Waterfront Parking Lot Operator II Waterfront $18.02 7422 8331 Waterfront Parking Lot Operator III Waterfront $18.60 7328 8282 Web Technician Administrative Services $30.01

EFFECTIVE
7/12/2025
9/20/2025
10/4/2025
Hourly Rate Schedule (Limited Term)

REVISIONS
Firefighters' Association Salary Adjustment
Santa Barbara Police Officers Association Salary Adjustment Treatment and Patrol Salary Adjustment

ATTACHMENT 1

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: City Attorney’s Office
SUBJECT: Authorization to Amend the Legal Services Agreement with Richards Watson & Gershon regarding the De La Vina Street Bridge Replacement Project [Resolution; Agreement]
RECOMMENDATION: That Council:

A. Authorize the City Attorney to execute the Second Amendment to Legal Services Agreement No. 22200154 with Richards Watson & Gershon, a professional corporation, for the De La Vina Street Bridge Replacement Project litigation, by increasing the agreement by $250,000 for a total not to exceed amount of $615,000; 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 Accept and Appropriate Grant Funds for the Right of Way and Construction Phases of the De La Vina Street Bridge Replacement Project.

DISCUSSION:

On March 22, 2022, the City entered into a legal services agreement with Richards Watson & Gershon to provide special counsel services with respect to property acquisition and eminent domain proceedings for the De La Vina Street Bridge Replacement Project (Project). The agreement was made under the signature authority of the City Administrator in an amount not to exceed $35,000 with an understanding that Council approval of a contract increase would be required if eminent domain proceedings were initiated. On May 17, 2022, Council adopted two resolutions of necessity for acquisition by eminent domain of two parcels required for the construction of the Project.

On June 2, 2022, complaints in eminent domain were filed in the Santa Barbara Superior Court to acquire the parcels, one located at 2726 and 2728 De La Vina Street and the other at 2733 and 2735 De La Vina Street. The action relating to 2733 and 2735 De La Vina Street has been resolved and a Final Order of Condemnation submitted to the Court.

Agenda Item No. 8
File Code No. 160.03
Council Agenda Report
Authorization to Amend the Legal Services Agreement with Richards Watson & Gershon regarding the De La Vina Street Bridge Replacement Project [Resolution; Agreement] October 14, 2025

The Project is in year one of construction and the action related to 2726 and 2728 De La Vina Street remains pending. For contract purposes, special counsel has estimated an increase in budget of $250,000, which is necessary to cover mediation, attorneys' fees, expert witness costs and relocation appeal, if the remaining matters are contested through trial.

BUDGETARY IMPACTS:

The Project is primarily funded by Federal Highway Administration (FHWA) Highway Bridge Program (HBP) grant funds, which cover 88.53 percent of the Project costs. The

11.47 percent City share is funded by Measure A and Measure C Capital Funds.

On July 8, 2025, the FHWA programmed and approved the allocation of an additional $739,226 in grant funding to cover the additional Right of Way (ROW) Phase costs as a result of outstanding negotiations and potential claims. The FHWA also approved and programmed additional grant funding in the amount of $4,354,790 to cover the total construction costs after receipt of bids. Staff may return to Council for additional appropriations in the future when final costs are known.

The cost for legal support and related costs for this case will be paid from the Streets Grants Capital Fund. Adequate available appropriations exist in the De La Vina Street Bridge Project in the Streets Grants Capital Fund for Fiscal Year 2026.

PREPARED AND
SUBMITTED BY: Daniel S. Hentschke, Assistant City Attorney Brian D’Amour, P.E., Public Works Director/LY/EG
APPROVED BY: Kelly McAdoo, City Administrator
1 RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 25-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2026, TO

ACCEPT AND APPROPRIATE GRANT FUNDS FOR THE

RIGHT OF WAY AND CONSTRUCTION PHASES OF THE
DE LA VINA STREET BRIDGE REPLACEMENT PROJECT.

WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2025; and WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2025; and
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 25-066, this Resolution approves the amendment to the budget as provided herein.

NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT in accordance with the provisions of Section 1205 of the City Charter, the budget for the Fiscal Year 2026, as adopted by Resolution No. 25-066 is hereby amended as follows:

1. The Council accepts Federal Highway Administration Highway Bridge Program grant funds in the amount of $5,094,016 for the Right of Way and Construction Phases of the De La Vina Street Bridge Replacement Project.

2. The Council approves an increase in revenue and expenditure appropriations in the Streets Grant Capital Fund in Fiscal Year 2026 in the amount of $5,094,016 for the Right of Way and Construction Phases of the De La Vina Street Bridge Replacement Project.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: Information Technology Department
SUBJECT: Agreement with Geographic Technologies Group for the Geodatabase Redesign and Rebuild [Agreement]
RECOMMENDATION:

That Council authorize the Information Technology Director to execute an agreement with Geographic Technologies Group in the amount of $150,124 for the redesign and rebuilding of the City of Santa Barbara’s enterprise geodatabase infrastructure, including documentation, schema updates, migration, integration, topology validation, and related support and training services.

DISCUSSION:

The City of Santa Barbara’s (City) enterprise geodatabase serves as the backbone for geographic information systems (GIS) used across multiple departments, including Public Works, Fire, Parks & Recreation, Sustainability & Resilience, and Community Development. As identified in the five-year GIS strategic plan, the current database structure has become outdated, contains duplicate datasets, inconsistent domains, and legacy schema designs that hinder integration with modern tools and applications.

A comprehensive review and redesign of the geodatabase infrastructure will ensure data consistency, eliminate redundancy, streamline integrations, and support advanced GIS capabilities. The scope of services provided by Geographic Technologies Group (GTG) includes reviewing and documenting the existing system, rebuilding the enterprise database, updating schemas and domains, migrating authoritative data, validating utility data set topologies, and republishing web services. In addition, the project includes the creation of data stewardship processes and staff training to ensure the long-term sustainability of the GIS environment.

Agenda Item No. 9
File Code No. 170.04
Council Agenda Report
Agreement with Geographic Technologies Group for the Geodatabase Redesign and Rebuild [Agreement]
October 14, 2025

This project directly supports the City’s strategic goals of improving data-driven decision making, enhancing operational efficiency, and preparing the GIS infrastructure for future integrations with additional enterprise systems.

With over 25 years’ experience in the GIS industry and 1000+ local government clients, GTG was selected as the vendor due to their knowledge and understanding of the project scope and City’s GIS infrastructure. GTG also has direct experience and knowledge with the City GIS, having previously been hired in 2023 to develop the City’s 5-Year GIS Strategic Plan.

BUDGET/FINANCIAL INFORMATION:

The total cost for the proposed agreement is $150,124. Sufficient funds for this agreement have been allocated within the Information Technology Department’s FY2026 Capital Improvement Program budget.

ENVIRONMENTAL REVIEW:

The execution of a Professional Services Agreement with GTG does not have any direct or indirect physical changes in the environment; therefore, this agreement falls outside of the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378 (b)(5), as administrative activities of governments that will not result in physical changes in the environment are not subject to CEQA environmental review.

A copy of the agreement may be requested from the Information Technology Department for public review by emailing [email protected].

PREPARED BY: Rudy Fidler, Information Technology Manager SUBMITTED BY: Justin Cure, Information Technology Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: Airport Department
SUBJECT: Early Termination of Lease Agreement with Soft Logic, Inc., dba Tecfen Medical [Agreement]
RECOMMENDATION:

That Council approve and authorize the Airport Director to execute the Release of All Claims and Early Termination of Lease Agreement for Lease Agreement No. 202307 with Soft Logic Inc., dba Tecfen Medical, for the premises located at 90 Dean Arnold Place, Suite B, Santa Barbara, CA.

DISCUSSION:

On July 15, 2025, the Lessee submitted a formal request for an early termination of Lease Agreement No. 202307 for the premises located at 90 Dean Arnold Place, Suite B, citing operational efficiency improvements and a decision to consolidate operations into its primary leasehold with the Airport at 6100 Hollister Avenue.

Lease Agreement No. 202307 commenced on March 1, 2023, for an initial one-year term, with two (2) three-year options to extend. The Lessee exercised the first option term, with the lease scheduled to expire on February 28, 2027. The premises consist of approximately 1,950 square feet of warehouse space. Current rent is $2,535 per month, or $30,420 annually, exclusive of utilities.

The tenant has remained in good standing throughout the lease. Airport staff support the request for early termination and recommend approval. The action will allow the tenant to consolidate operations while returning the premises to the Airport for re-leasing at current market rates. Furthermore, in return for the City agreeing to an early termination of the lease, the tenant has agreed to release any and all claims that may arise from the tenant’s lease of the premises by executing the Release Of All Claims And Early Termination of Lease Agreement on file with the Airport Department.

Agenda Item No. 10
File Code No. 330.04
Council Agenda Report
Early Termination of Lease Agreement with Soft Logic, Inc., dba Tecfen Medical [Agreement]
October 14, 2025

The Airport Commission reviewed this request at its meeting on August 20, 2025, and recommended approval to City Council.

BUDGET/FINANCIAL INFORMATION:

Approval of the early termination will release the tenant from the remaining lease obligations, resulting in the projected loss of $40,560 rental income through February 28, 2027. However, staff already have interest from prospective tenants for this space and anticipate minimal interruption of rental revenue.

A copy of the Release of All Claims and Early Termnation of Lease Agreement may be requested from the Airport Department for public review by contacting [email protected].

PREPARED BY: John Feldhans, Airport Properties Manager
SUBMITTED BY: Chris Hastert, Airport Director
APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Freeway Agreement and Amendment to Freeway Maintenance Agreement with Caltrans [Agreement]
RECOMMENDATION: That Council:

A. Authorize the Public Works Director to execute, subject to approval as to form by the City Attorney, a superseding Freeway Agreement between the City of Santa Barbara and the State of California Department of Transportation regarding US Highway 101 within City limits; and
B. Authorize the Public Works Director to execute, subject to approval as to form by the City Attorney, Amendment No. 1 to an existing Freeway Maintenance Agreement between the City of Santa Barbara and the State of California Department of Transportation to cover Hot Springs Road to Milpas Street.

DISCUSSION:

Freeway Agreement
A Freeway Agreement is a cooperative document between the State of California Department of Transportation (Caltrans) and the City of Santa Barbara (City) that outlines how a state freeway will interface with the local street network. It ensures that interchange locations, street connections, and circulation needs are clearly defined, while also identifying which agency is responsible for ongoing maintenance. The agreement provides a shared understanding that supports safe freeway operations and protects local access for the community.

Currently, US Highway 101 through Santa Barbara, from Olive Mill Road to State Route 154, is covered by four separate Freeway Agreements. The purpose of the recommended Freeway Agreement is to supersede the four existing agreements with one document.

Agenda Item No. 11
File Code No. 670.07
Council Agenda Report
Freeway Agreement and Amendment to Freeway Maintenance Agreement with Caltrans [Agreement]
October 14, 2025

Freeway Maintenance Agreement
A Freeway Maintenance Agreement is a contract between Caltrans and the City that specifies which agency is responsible for maintaining different features after the freeway is built, such as landscaping, lighting, sound walls, drainage facilities, or local street connections at interchanges. Unlike a Freeway Agreement, which focuses on access, street closures, and circulation planning during the freeway’s design and construction, the Maintenance Agreement is strictly about long-term upkeep and clarifies ongoing responsibilities to avoid duplication or gaps in maintenance.

On July 30, 2024, the Council authorized the execution of a Freeway Maintenance Agreement with Caltrans specific to the Olive Mill interchange due to the construction of the roundabout at that location. As a result of recently completed and upcoming work associated with the US Highway 101 widening project, the recommended amendment to this Freeway Maintenance Agreement is needed to cover the stretch between the Olive Mill Road and Milpas Street interchanges. This amendment will supersede existing Freeway Maintenance Agreements for this area.

BUDGET/FINANCIAL INFORMATION:

The agreements outline maintenance areas and responsibilities based on existing agreements or past practices. The recommended action has no direct fiscal impact.

The agreements are currently in draft form and will be finalized when Caltrans and City staff reach full agreement on all terms. Copies of the agreements may be requested from the Public Works Department for public review by contacting [email protected].

ENVIRONMENTAL REVIEW:

The Freeway Agreement and Freeway Maintenance Agreement fall outside of the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378 (b)(5) as administrative activities of governments that will not result in direct physical changes in the environment are not subject to CEQA environmental review. The authorization of the Freeway Maintenance Agreement will not result in direct physical impacts to the environment. All future maintenance projects resulting from these agreements will be subject to CEQA environmental review.

PREPARED AND
SUBMITTED BY: Brian D’Amour, P.E., Public Works Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: Information Technology Department
SUBJECT: Professional Services Agreement with Plante Moran for the Information Technology Strategic Plan [Agreement]
RECOMMENDATION:

That Council authorize the Information Technology Director to execute an agreement with Plante Moran in the amount of $148,700 for the development of the Information Technology Strategic Plan.

DISCUSSION:

Background
In 2017, the City of Santa Barbara (City) engaged Plante Moran to assess its Information Technology (IT) services, leading to the creation of an IT Department in 2019 and the hiring of the first IT Director in 2021. This initiative marked a significant transformation in the City’s approach to technology and digital services.

Since its establishment, the IT Department has been diligently working with all City departments to identify their specific technological needs. While these efforts have included some strategic planning and improvements, there has been an absence of a comprehensive Citywide strategy that aligns IT initiatives with the broader goals and priorities of the City.

Given the rapid evolution of technology and the increasing demand for digital services, the City now recognizes the need for a holistic and forward-looking IT Strategic Plan. This plan is intended to not only address immediate operational needs but also to position the City as a leader in municipal technology innovation.

Agenda Item No. 12
File Code No. 170.04
Council Agenda Report
Professional Services Agreement with Plante Moran for the Information Technology Strategic Plan [Agreement]
October 14, 2025

Project Description
The proposed collaboration with Plante Moran will be instrumental on this project. Plante Moran will bring their expertise in IT assessment and strategic planning to work closely with the City’s IT staff. The goal is to thoroughly review and evaluate the current IT organization, technology environment, products, services, staffing, processes, and systems.

This assessment will be conducted in three distinct phases:

PHASE 1: DISCOVERY
Plante Moran will review the City’s current IT organization, technology environment, products, services, staffing, processes, and systems. This will result in initial themes, preliminary findings and gaps, and areas for improvement.

PHASE 2: ANALYSIS AND RECOMMENDATIONS
Plante Moran will then perform a deeper analysis of the information gathered during Phase

1. The findings and prioritized recommendations will be assembled into a report that will be reviewed with the City’s project team.

PHASE 3: STRATEGIC PLAN DEVELOPMENT
Finally, Plante Moran will develop a comprehensive IT Strategic Plan that aligns IT initiatives with the City’s overall goals and priorities that are currently being developed in the Citywide strategic plan. The plan will include actionable steps, timelines, and metrics for success.

Through this strategic planning process, the City aims to enhance its IT infrastructure, optimize resource allocation, and ultimately deliver better services to its residents. The collaboration with Plante Moran is expected to bring valuable insights and expertise, ensuring that the City’s IT initiatives are both innovative and sustainable.

Selection Process
Three different IT strategic planning consultants were interviewed to better understand their capabilities to meet the City’s needs. These interviews consisted of a company overview, experience and expertise, project approach, team composition, technical capabilities, project management, client collaboration, and cost.

After careful consideration and analysis, Plante Moran was selected as the preferred vendor due to their extensive expertise, proven track record, and innovative approach to IT strategic planning. Their ability to effectively communicate and collaborate with the City's IT staff, as well as their comprehensive understanding of the City's unique needs and goals, set them apart from the other candidates.

Council Agenda Report
Professional Services Agreement with Plante Moran for the Information Technology Strategic Plan [Agreement]
October 14, 2025

Moreover, Plante Moran demonstrated a strong commitment to delivering high-quality results within the proposed timeline and budget. Their team of skilled professionals showed a thorough understanding of the latest technological advancements and best practices, ensuring that the City's IT infrastructure would be both modernized and sustainable.

This selection process involved a detailed review of Plante Moran's previous projects and client testimonials, which highlighted their ability to successfully execute similar initiatives.

The City is confident that this collaboration will lead to significant improvements in its IT operations, ultimately enhancing the quality of services provided to residents.

BUDGET/FINANCIAL INFORMATION:

The total cost for the proposed agreement is $148,700.

There are sufficient expenditure appropriations in the Fiscal Year 2026 Information Technology Capital fund to cover the cost of the contract.

ENVIRONMENTAL REVIEW:

The execution of a Professional Services Agreement with Plante Moran does not have any direct or indirect physical changes in the environment; therefore, this agreement falls outside of the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378 (b)(5), as administrative activities of governments that will not result in physical changes in the environment are not subject to CEQA environmental review.

A copy of the agreement may be requested from the Information Technology Department for public review by emailing [email protected].

PREPARED BY: Rudy Fidler, Information Technology Manager SUBMITTED BY: Justin Cure, Information Technology Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Funding Recommendations for Community Arts, Organizational Development, and Events and Festivals Cultural Arts Grants RECOMMENDATION:

That Council review and approve the City of Santa Barbara Arts Advisory Committee and Community Events and Festivals Committee grant funding recommendations for Fiscal Year 2026.

DISCUSSION:

In the Fiscal Year 2026 budget, Council authorized $239,963 in regranting funds for the City of Santa Barbara Cultural Arts grant programs. The three programs, Community Arts, Organizational Development, and Community Events & Festivals, support the work of diverse nonprofit organizations to: provide free arts access for underserved communities, offer arts programs and services for residents and visitors, increase sustainability, and create events and festivals that enhance economic and community vitality. All grantfunded programs must take place within city limits.

Applicants may only apply for one program per cycle. The maximum request amount may not exceed $6,000 for the Community Arts grant program, and is capped at $15,000 for the Events and Festivals and Organizational Development grant programs.

For this cycle, forty-eight organizations applied for a total of $503,850. This reflects a decrease from the Fiscal Year 2025 cycle. This is due to the shift from 12-month to 18- month cycles for the Organizational Development and Community Events and Festivals programs. Under the new structure, organizations with an active award cannot apply again until their cycle ends, creating every-other-year eligibility.The 18-month cycle gives grantees more time to complete projects, increases access to limited funds, and reduces administrative work, while also funding more viable applicants.

Agenda Item No. 13
File Code No. 610.03
Council Agenda Report
Funding Recommendations for Community Arts, Organizational Development, and Events and Festivals Cultural Arts Grants
October 14, 2025

As part of the annual City-County Arts Services agreement, the City contracts the County Office of Arts and Culture to administer the Cultural Arts grant programs and provide staff support for the Arts Advisory Committee and Community Events & Festivals Committee.

The Arts Advisory Committee reviews applications and makes award recommendations for the Community Arts and Organizational Development grant programs. The Community Events & Festivals Committee reviews applications and makes award recommendations for the Community Events & Festivals grant program.

With Council’s approval, Community Arts grant contracts will be executed for a January 1, 2026 - December 31, 2026 activity period. Organizational Development and Events & Festivals grants will be executed for a January 1, 2026 - June 30, 2027 activity period.

The City of Santa Barbara Cultural Arts Grant Program guidelines and criteria are outlined in Attachment 1. Attachment 2 includes the list of all FY 2026 grant applicants, project descriptions and award recommendations.

City of Santa Barbara FY 2026 Cultural Arts Grant Program Summary Community Events & Festivals Grant Program
The City’s Community Events & Festivals grant program funds events and festivals which contribute to the economic and cultural vitality and promotion of Santa Barbara. The Community Events & Festivals Committee met on September 10, 2025 to review and rank applications for the Events & Festivals Grant program. On September 18, 2025, the Committee met to vote on recommendations based on the rankings to send to Council.

The base amount of re-granting funds allocated in the Fiscal Year 2026 budget for this program was $83,000.

Applicants were able to submit requests for up to $15,000. A total of $201,100 was requested by 14 nonprofit organizations to host and produce events and festivals.

Community Arts Grant Program
The City’s Community Arts grant program funds projects and programs for underserved communities and youth; its objective is to ensure accessibility to the arts for all members of Santa Barbara’s community. The Arts Advisory Committee met on September 8, 2025, to review and rank applications. On September 18, 2025, the Committee voted on award recommendations to send to City Council. The base amount of re-granting funds allocated by the City for this program in the 2026 Fiscal Year Budget was $53,963.

Applicants were able to submit requests for up to $6,000, and a total of $104,950 of funding support was requested by 20 nonprofit organizations.

Council Agenda Report
Funding Recommendations for Community Arts, Organizational Development, and Events and Festivals Cultural Arts Grants
October 14, 2025

Organizational Development Grant Program
The City’s Organizational Development grant program funds a diverse cross-section of local arts and culture nonprofits, including those providing multicultural and neighborhood grant programs. The Arts Advisory Committee met on September 8, 2025, to review and rank applications for the Organizational Development Grant program. On September 18, 2025, the Committee voted on award recommendations for City Council review and approval. The base amount allocated by the City for this program in Fiscal Year 2026 was $103,000.

For Fiscal Year 2026, a total of $197,800 of funding support was requested by 14 nonprofit organizations.

BUDGET/ FINANCIAL INFORMATION:

The City’s Fiscal Year 2026 budget appropriated $239,963 for these grants.

Grant Categories Fiscal Year 2026
Community Events and Festivals Grants $ 83,000
Organizational Development Grants 103,000
Community Arts Grants 53,963
Total $ 239,963
Attachment 2 contains a detailed report that itemizes all grant funding award recommendations to be administered through the City-County Arts Services contract.

ATTACHMENTS: 1. City of Santa Barbara Cultural Arts Grants Program Guidelines

2. Community Cultural Arts Grant Funding Recommendations

PREPARED AND
SUBMITTED BY: Sarah York Rubin, Exec. Director of County Office of Arts & Culture Hannah Rubalcava, Grants & Contracts Manager, Office of Arts & Culture
Brandon Beaudette, Library Director
APPROVED BY: Kelly McAdoo, City Administrator
1 CITY OF SANTA BARBARA
2025-2026 CULTURAL ARTS GRANTS GUIDELINES:

Community Arts Grant
Organizational Development Grant
Community Events and Festivals Grant
Deadline for all Grant Program Applications:

August 15, 2025 5:00 p.m.

The City of Santa Barbara Cultural Arts Grant Programs are funded by the City of Santa Barbara with administrative support from the Santa Barbara County Office of Arts and Culture.

Grant applications must be submitted through the Community Grants Software Portal at https://sbac.force.com/communitygrants
Reference applications can be downloaded at https://www.sbac.ca.gov/city-grants ATTACHMENT 1
2 CITY OF SANTA BARBARA CULTURAL ARTS GRANT GUIDELINES
As part of its ongoing commitment to a vibrant, sustainable local cultural sector and arts access for all, the City of Santa Barbara invests nearly $250,000 each year into the community through its Arts and Culture Grants Program.

CULTURAL ARTS GRANT PROGRAM CATEGORIES

COMMUNITY ARTS GRANT PROGRAM
The Community Arts (CA) grant program funds projects and programs for underserved communities and youth.

Maximum grant request: $6,000
Award Period: January 1, 2026-December 31, 2026 (12-month)

ORGANIZATIONAL DEVELOPMENT GRANT PROGRAM
The Organizational Development (OD) grant program funds local arts and culture nonprofit organizations for strategic initiatives to improve organizational capacity, performance, expand audience reach and/or to increase earned income.

Maximum grant request: $15,000
Award Period: January 1, 2026-June 30, 2027 (18-month)

COMMUNITY EVENTS AND FESTIVALS GRANT PROGRAM
The Community Events and Festivals (EF) grant program funds events and festivals which contribute to the cultural vitality and promotion of the City of Santa Barbara.

Maximum grant request: $15,000
Award Period: January 1, 2026-June 30, 2027 (18-month)

APPLICATION ELIGIBILITY REQUIREMENTS
To be eligible for City arts and culture grant funding, the applicant must:
 Attend a technical assistance workshop. Workshops are mandatory for ALL applicants.  Apply as a nonprofit organization with tax-exempt status [501(c)(3)]* [OR] a nonprofit [501(c)(3)] fiscal sponsor representing an individual artist/s or community group. *Fiscal Sponsors (For Community Arts and Events and Festivals Grants ONLY) If an applicant does not have 501(c)(3) status, they may apply under the auspices of a registered 3 501(c)(3) organization. The fiscal sponsor acts as the fiscal agent for the group or individual applying and assumes all responsibilities required by the contract. Any payment for services rendered is issued to the fiscal sponsor. The use of fiscal sponsors is not allowed for Organizational Development Grants.  Serve the residents of the City of Santa Barbara with the grant program and funding, with all funded activities taking place within City limits.

Please note that all events, festivals, and programs are still subject to any and all relevant permitting requirements. Additionally, grant-funded events, festivals, and programs are not Official City of Santa Barbara events.

If awarded funding, ALL grantees must also attend a mandatory grant recipient workshop in order to receive funds.

RESTRICTIONS
An organization may submit only ONE City of Santa Barbara Cultural Arts grant application from the following City grant categories: Community Arts, Organizational Development, OR Community Events & Festivals per grant cycle.

Organizations may only receive one City of Santa Barbara Cultural Arts Grant per grant award period. Those funded on an 18-month award period must wait until the end of the award period to reapply.

Funding Requests are INELIGIBLE for the following:
 Programs or projects not held within the Santa Barbara City Limits.  Organizations and/or projects currently receiving funds through a line item in the City Budget.  Capital improvements and construction of buildings or facilities over $1,500.  Organizations primarily involved in political action, legislation, lobbying; projects with religious purposes.
 Programs in facilities that are not ADA compliant.
 Trusts, endowment funds, regranting, investments, or prize money.  Profit-making organizations, ventures, or replacement of deficit funds.  Fundraising or arts services for events in which fundraising is the primary purpose.  Programs or services intended for private use, or for use by restricted membership.  Hospitality or food costs.
 Purchase of tickets and/or scholarships for an event/program produced by the applicant.  Expenses incurred before the start or after the ending date of the grant.  Organizations still under an existing City of Santa Barbara Cultural Arts Grant agreement after the current grant cycle's start date.
4  Organizations with current Arts Advisory Committee members, their spouses, or family members employed, paid, or serving on the board are ineligible for Community Arts or Organizational Development Grant funding.
 Organizations with current Community Events and Festivals Committee members, their spouses, or family members employed, paid, or serving on the board are ineligible for Community Events and Festivals Grant funding.

California Model Agreement (AB20) and indirect costs - In order to comply with AB20 requirements, University of California and California State University grantees are required to secure an indirect cost waiver from the Regents of the University of California or the Board of Trustees of the California State University.

APPLICATION DEADLINE
Applications must be received no later than 5:00 PM on the designated deadline. Late or incomplete applications will not be accepted.

GRANT REPORTING PROCESS
All forms are located in the Community Grants software portal and must be completed online.

To ensure a successful experience, please read and note all final report questions prior to beginning a grant project. The self-evaluations are available for download at www.sbac.ca.gov. Final payment of grant funding will not be disbursed until the completed final report and invoice are received by the County Office of Arts & Culture.
5 COMMUNITY ARTS GRANT PROGRAM
The City of Santa Barbara’s Community Arts Grant Program (CA) funds grant requests that provide projects and programs for underserved communities and youth within the Santa Barbara City limits.

COMMUNITY ARTS GRANT PROGRAM OBJECTIVE
The objective of the Community Arts Grant Program is to ensure accessibility to the arts for all members of the City of Santa Barbara’s community.

Award Period: January 1, 2026-December 31, 2026 (12-month) Maximum Grant Award: $6,000
Total Community Arts Funds Available this Grant Cycle: $53,963

COMMUNITY ARTS APPLICATION CHECKLIST
 Completed application submitted through the Community Grants Software Portal  For artists/projects using a fiscal sponsor: letter of commitment/support from the fiscal sponsor agreeing to serve as the fiscal sponsor of the grant program.  Completed budget for proposed program or project using to the template provided in the application

COMMUNITY ARTS GRANT APPLICATION REVIEW CRITERIA
Community Arts Grant applications will be reviewed by a grant panel consisting of members from City of Santa Barbara’s Arts Advisory Committee.

All City of Santa Barbara Cultural Arts grant programs will be scored according to the following criteria:

1. Demonstrated overall need for proposed project and the lasting impact on the community served

2. Fiscal responsibility: overall cost-effectiveness of project, including the use of matching funds and other financial and in-kind community support

3. Commitment to payment for any artistic services

4. Use of qualified experts in their artistic medium and/or cultural field in programs

5. Inclusion of diverse communities and artists in program planning and implementation In addition, Community Arts Grants will specifically be scored according to the following criteria:

1. Demonstration of partnerships, collaboration, and innovation

2. Number of people served and/or the depth of impact of the program offered

3. Cultural relevance to the community being served
6 Grant applications will be evaluated according to weighted sections with the following numerical values. 5 Exemplary Meets all of the review criteria to the highest degree possible 4 Strong Meets all of the review criteria in a significant manner 3 Good Meets the majority of the review criteria; however, areas of the application need improvement, development or clarification
2 Marginal Significant inadequacies in addressing review criteria 1 Weak Does not meet the majority of the review criteria in a significant manner 0 Ineligible Inappropriate for grant support: incomplete applications, applications with significant ineligible expenses, and proposals that do not meet the program requirements. 7 ORGANIZATIONAL DEVELOPMENT GRANT PROGRAM
The City of Santa Barbara’s Organizational Development Grant Program (OD) funds Santa Barbara arts and culture nonprofit organizations. The applicants to this program are representative of a diverse cross-section of arts organizations, including those providing multicultural and neighborhood arts programs. Grants will support operational and marketing strategies for projects that increase organizational capacity, expand audience development and earned income.

ORGANIZATIONAL DEVELOPMENT GRANT PROGRAM OBJECTIVE
The objective of the Organizational Development Grant Program is to improve organizational capacity and performance, enhance audience reach and/or increase earned income of organizations based in the City of Santa Barbara.

Award Period: January 1, 2026-June 30, 2027 (18-month)
Maximum Grant Award: $15,000
Total Organizational Development Funds Available this Grant Cycle: $103,000

ORGANIZATIONAL DEVELOPMENT APPLICATION CHECKLIST
 Completed application submitted through the Community Grants Software Portal  Copy of Organization’s Strategic Plan or Marketing Plan (If the strategic plan or marketing plan is over 5 pages please provide the executive summary only.)
 Completed Budget for proposed program or project using the template provided in the application  The first page of the applicant’s Form 990 (financial statement) from the last completed fiscal year.

ORGANIZATIONAL DEVELOPMENT APPLICATION REVIEW CRITERIA
Organizational Development Grant applications will be reviewed by a grant panel consisting of members from the City of Santa Barbara’s Arts Advisory Committee.

All City of Santa Barbara Cultural Arts grant programs will be scored according to the following criteria:

1. Demonstrated overall need for proposed project and the lasting impact on the community served

2. Fiscal responsibility: overall cost-effectiveness of project, including the use of matching funds and other financial and in-kind community support

3. Commitment to payment for any artistic services

4. Use of qualified experts in their artistic medium and/or cultural field in programs

5. Inclusion of diverse communities and artists in program planning and implementation In addition, Organizational Development Grants will specifically be scored with the following criteria:
8 1. The provided strategic plan or marketing plan is thorough and demonstrates a clear vision for the future OR the grant application demonstrates a clear need for the creation of a strategic plan or marketing plan.

2. Organization’s business model is sustainable and demonstrates relevance to the arts and culture sector of the Santa Barbara community

3. Leadership of the organization is committed to and capable of executing the plan Grant applications will be evaluated according to weighted sections with the following numerical values. 5 Exemplary Meets all of the review criteria to the highest degree possible 4 Strong Meets all of the review criteria in a significant manner 3 Good Meets the majority of the review criteria; however, areas of the application need improvement, development or clarification
2 Marginal Significant inadequacies in addressing review criteria 1 Weak Does not meet the majority of the review criteria in a significant manner 0 Ineligible Inappropriate for grant support: incomplete applications, applications with significant ineligible expenses, and proposals that do not meet the program. 9 COMMUNITY EVENTS AND FESTIVALS GRANT PROGRAM
The City of Santa Barbara Community Events & Festivals Grant Program (EF) funds local organizations producing events and festivals within the Santa Barbara City limits which contribute to the cultural vitality and promotion of the City of Santa Barbara.

COMMUNITY EVENTS AND FESTIVALS GRANT PROGRAM OBJECTIVE
The objective of this grant program is to support the development, implementation, and sustainability of Events and Festivals within the City of Santa Barbara.

Award Period: January 1, 2026-June 30, 2027 (18-month)
Maximum Grant Award: $15,000
Total Community Events and Festivals Funds Available this Grant Cycle: $83,000

COMMUNITY EVENTS AND FESTIVALS APPLICATION CHECKLIST
 Completed application submitted through the Community Grants Software Portal including a minimum of 2 and no more than 4 work samples and/or other supplemental materials which may include a video testimonial or proposal of project
 For artists/projects using a fiscal sponsor: letter of commitment/support from the fiscal sponsor agreeing to serve as the fiscal sponsor of the grant program  Completed Budget for proposed program or project using the template provided in the application  The first page of the applying organization’s or fiscal sponsor’s Form 990 (financial statement) from the last completed fiscal year

COMMUNITY EVENTS AND FESTIVALS APPLICATION REVIEW CRITERIA Grant applications will be reviewed by the City of Santa Barbara’s Community Events and Festivals Committee.

All City of Santa Barbara Cultural Arts grant programs will be scored according to the following criteria:

1. Demonstrated overall need for proposed project and the lasting impact on the community served

2. Fiscal responsibility: overall cost-effectiveness of project, including the use of matching funds and other financial and in-kind community support

3. Commitment to payment for any artistic services

4. Use of qualified experts in their artistic medium and/or cultural field in programs

5. Inclusion of diverse communities and artists in program planning and implementation In addition, Community Events and Festivals Grants be scored according to the following criteria:
10 1. Event or Festival is culturally relevant and/or enhances the cultural vitality of Santa Barbara

2. Economic impact of the event or festival (e.g. hotel stays, restaurant visits, retail sales/sales tax)

3. Potential for new events and festivals to build and enhance the cultural vitality of Santa Barbara

4. Ability to engage with new and/or existing audiences

5. Priority will be given to events held during the shoulder season (January-May; September-December, holidays excluded.)

6. Additional consideration will be given to events held during the mid-week Grant applications will be evaluated according to weighted sections with the following numerical values. 5 Exemplary Meets all of the review criteria to the highest degree possible 4 Strong Meets all of the review criteria in a significant manner 3 Good Meets the majority of the review criteria; however, areas of the application need improvement, development or clarification
2 Marginal Significant inadequacies in addressing review criteria 1 Weak Does not meet the majority of the review criteria in a significant manner 0 Ineligible Inappropriate for grant support: incomplete applications, applications with significant ineligible expenses, and proposals that do not meet the program requirements 1 of 13

CITY OF SANTA BARBARA COMMUNITY EVENTS AND FESTIVALS COMMITTEE FY 2025-2026 Community Events and Festivals Grant Award Recommendations The Community Events & Festivals Grant Program invests in local organizations that present events and festivals celebrating Santa Barbara’s cultural vitality while also generating positive economic impact for the city. Through grants of up to $15,000, the program supports organizations with the capacity to deliver engaging, high-quality events that attract residents and visitors, foster community pride, and strengthen Santa Barbara’s reputation as a vibrant cultural destination. These grants not only sustain longstanding events, but also create opportunities for new cultural experiences that enhance quality of life and contribute to the local economy.

COMMUNITY EVENTS AND FESTIVALS GRANT GENERAL INFORMATION Total EF Grant Funding Requested: $201,100
Total EF Grant Funding Available: $83,000
Total Number of Applicants: 14
Number of Applicants Recommended for Funding: 9

GRANT APPLICANTS, DESCRIPTIONS, AND AWARD AMOUNT RECOMMENDATIONS (Please note: the grant descriptions provided below are submitted by the applicants as part of their grant application.)

GRANT APPLICATIONS RECOMMENDED FOR FUNDING
Brandwell Arts APP-003569 ____________________________________________________________________________________________________________________________________________________________________________________ “Brave New Work 2, AI and Tech in the Hands of Artists” is a three-day symposium and contemporary art exhibition showcasing internationally recognized artists and speakers who are utilizing exciting new technologies to tell compelling stories centered on the environment, cultural identities, and community.” Amount Requested: $15,000
Recommended Grant Award: $9,300
Ceylon International Film Festival Foundation APP-003567 ____________________________________________________________________________________________________________________________________________________________________________________ “Founded with the mission to spotlight the stories, artistry, and heritage of Sri Lanka and the broader South Asian region, CEYIFF serves as a bridge between cultures, offering our community a unique opportunity to experience cinema beyond the mainstream.”
Amount Requested: $15,000
Recommended Grant Award: $10,500
ATTACHMENT 2
2 of 13
eji event co. APP-003525 ____________________________________________________________________________________________________________________________________________________________________________________ “Coffee Culture Fest is a new, inclusive event celebrating where caffeine meets culture. Scheduled for Saturday, March 28th 2026 at the Marjorie Luke Theater, this experience will spotlight local roasters, businesses, artists, and performers through an immersive family-friendly daytime festival.” Amount Requested: $15,000
Recommended Grant Award: $10,200
Elings Park Foundation APP-003577 ____________________________________________________________________________________________________________________________________________________________________________________ “Shakespeare at Elings is a two-day festival that will be held at Elings Park over Memorial Day 2026. The twoperformance event is in partnership with Will Geer Theatricum Botanicum and aims to increase access to the arts in Santa Barbara.”
Amount Requested: $15,000
Recommended Grant Award: $9,300
Grace Fisher Foundation APP-003563 ____________________________________________________________________________________________________________________________________________________________________________________ “The Winter Music Showcase is the Grace Fisher Foundation’s annual signature event held at the Granada Theatre, celebrating inclusion, creativity, and holiday spirit through the performing arts.” Amount Requested: $15,000
Recommended Grant Award: $10,500
La Piazza Inc. APP-003548 ____________________________________________________________________________________________________________________________________________________________________________________ “La Piazza is a vibrant three-day celebration bringing the flavors, traditions, and artistry of Italy to the heart of Santa Barbara. The festival gathers local Italian food and wine vendors, artisan producers, Italian business owners, and cultural organizations to create an immersive Italian experience.” Amount Requested: $15,000
Recommended Grant Award: $10,200
Park and Recreation Community Foundation APP-003553 ____________________________________________________________________________________________________________________________________________________________________________________ “The PARC Foundation requests $10,000 in support of its Summer 2026 Arts in the Open Program at the historic Plaza del Mar Band Shell. PARC hosted its first ever Arts in the Open program in Summer 2025 following the City of Santa Barbara’s successful full-scale renovation of the Band Shell.” Amount Requested: $10,000
Recommended Grant Award: $6,800
3 of 13
Santa Barbara Chinese School APP-003552 ____________________________________________________________________________________________________________________________________________________________________________________ “Enable SB families to celebrate Chinese New Year, Mid-Autumn Festival, and other significant cultural events with our growing community of Chinese language learners. Our educators provide traditional and contemporary Chinese holiday activities to increase cultural diversity for the local community.” Amount Requested: $15,000
Recommended Grant Award: $9,300
Santa Barbara Police Activities League APP-003540 ____________________________________________________________________________________________________________________________________________________________________________________ “The Santa Barbara Police Activities League (PAL) requests an $11,100 grant to support the 2026 Menudo Festival, a community event bringing together families and neighbors to enjoy traditional Mexican menudo from local Santa Barbara restaurants.”
Amount Requested: $11,100
Recommended Grant Award: $6,900

GRANT APPLICATIONS NOT RECOMMENDED FOR FUNDING
Catching Blessings APP-003556 ____________________________________________________________________________________________________________________________________________________________________________________ “Catching Blessings aims to mentor aspiring filmmakers by connecting them with industry professionals throughout every stage of film production, including pre-production, production, and post-production.” Amount Requested: $15,000
Recommended Grant Award: $ 0
Off Register: Santa Barbara Art Book & Print Fair APP-003535 ____________________________________________________________________________________________________________________________________________________________________________________ “Off Register: Santa Barbara Art Book and Print Fair, is a one-day event bringing together over 60 exhibitors from around California and across the country. The fair offers opportunities to meet, converse, and purchase work from a diverse group of artists and publishers working in a wide range of printmaking practices.” Amount Requested: $15,000
Recommended Grant Award: $ 0
Santa Barbara Independent APP-003579 ____________________________________________________________________________________________________________________________________________________________________________________ “In 2026, the Santa Barbara Independent is celebrating 40 years of publishing. This anniversary celebration will celebrate not only the last 40 years of our coverage of the greater Santa Barbara but also to celebrate the community itself.” Amount Requested: $15,000
Recommended Grant Award: $ 0
4 of 13
Santa Barbara Museum of Art APP-003581 ____________________________________________________________________________________________________________________________________________________________________________________ “The Santa Barbara Museum of Art proudly presents two major exhibitions—The Impressionist Revolution: Monet to Matisse and Encore: 19th-Century French Art—featuring Monet, Van Gogh, Matisse, and more in a celebration of beauty, innovation, and artistic legacy.”
Amount Requested: $15,000
Recommended Grant Award: $ 0
Westmont College APP-003521 ____________________________________________________________________________________________________________________________________________________________________________________ “FRINGE provides a platform for the creation of experimental theatre & allied arts, and supports the department’s goal of developing students’ creativity, imagination, technical proficiencies & courageous self-discipline in the generation of original work.”
Amount Requested: $15,000
Recommended Grant Award: $ 0
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CITY OF SANTA BARBARA ARTS ADVISORY COMMITTEE
2025-2026 Community Arts Grant Award Recommendations
The Community Arts Grant Program invests in the creativity of local artists and arts organizations to bring meaningful, accessible arts experiences to all members of Santa Barbara’s community. By funding smaller-scale projects that are rooted in collaboration and community partnerships, the program expands access to the arts, particularly for underserved populations and youth who may otherwise face barriers to participation. These grants not only support individual projects, but also strengthen the role of the arts in fostering equity, connection, and cultural vitality across the city.

The maximum amount of a Community Arts Grant is $6,000.

COMMUNITY ARTS GRANT GENERAL INFORMATION
Total CA Grant Funding Requested: $104,950
Total CA Grant Funding Available: $53,963
Total Number of Applicants: 20
Number of Applicants Recommended for Funding: 13

GRANT APPLICANTS, DESCRIPTIONS, AND AWARD AMOUNT RECOMMENDATIONS (Please note: the grant descriptions provided below are submitted by the applicants as part of their grant application.)

GRANT APPLICATIONS RECOMMENDED FOR COMMUNITY ARTS FUNDING Gateway Educational Services APP-003498 ____________________________________________________________________________________________________________________________________________________________________________________ “GES will host the fourth annual Black Youth Summit in August 2026 for students, parents, and community allies with following goals: empower Black youth; create a safe space for Black youth county wide to meet one another; offer nonviolence teaching/workshops; and offer cultural music and art.” Amount Requested: $6,000
Recommended Grant Award: $4,500
Hillside House Inc. APP-003571 ____________________________________________________________________________________________________________________________________________________________________________________ “Hillside is requesting funding to hire DJ of Ability Chris Benedict to come to Hillside once a month for one year to DJ a dance party for the residents.”
Amount Requested: $3,840
Recommended Grant Award: $2,880
6 of 13
Mental Wellness Center APP-003531 ____________________________________________________________________________________________________________________________________________________________________________________ “Art Heals serves low-income adults in the City of Santa Barbara, contending with SMI. Various art mediums are utilized as essential clinical tools; programming has demonstrated a high success rate with clients' emotional regulation, symptom management and social reintegration.”
Amount Requested: $5,760
Recommended Grant Award: $5,760
MOXI-The Wolf Museum of Exploration + Innovation APP-003528 ____________________________________________________________________________________________________________________________________________________________________________________ “MOXI is seeking a 6,000 grant to help pilot a new Mobile Maker Program designed to deliver engaging hands-on making experiences to children directly in their schools and communities.” Amount Requested: $6,000
Recommended Grant Award: $6,000
Music Academy of the West APP-003537 ____________________________________________________________________________________________________________________________________________________________________________________ “Music Academy’s Sing! program offers free, year-round choral training to 250+ elementary students in the Santa Barbara region. Sing! develops musical aptitude, teamwork, and confidence, and ensures access to high-quality music education.”
Amount Requested: $6,000
Recommended Grant Award: $6,000
Santa Barbara Asian American Pacific Islander Solidarity Network APP-003572 ____________________________________________________________________________________________________________________________________________________________________________________ “This project proposes to serve the Asian American and broader community together in the fun and community-building activity of mahjong, which is traditional during the Lunar New Year!” Amount Requested: $6,000
Recommended Grant Award: $6,000
Santa Barbara Chamber Players APP-003570 ____________________________________________________________________________________________________________________________________________________________________________________ “In 2026, the Santa Barbara Chamber Players (SBCP) will present 4 professional-quality orchestra concerts in Santa Barbara, featuring talented local musicians in the spring, summer and fall.” Amount Requested: $6,000
Recommended Grant Award: $3,570
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Santa Barbara Dance Institute APP-003558 ____________________________________________________________________________________________________________________________________________________________________________________ “From Jan. 1–Dec. 31, 2026, Santa Barbara Dance Institute will lead a year-long, community-based dance education initiative to expand access to the arts for underserved populations in Santa Barbara.” Amount Requested: $6,000
Recommended Grant Award: $4,500
Santa Barbara Symphony Orchestra Association APP-003574 ____________________________________________________________________________________________________________________________________________________________________________________ “As the only music education in Santa Barbara County led by a professional symphony orchestra, the Santa Barbara Symphony is requesting a $6,000 grant to provide free music arts enrichment during the school day to over 600 3rdgrade students.” Amount Requested: $6,000
Recommended Grant Award: $3,570
Santa Barbara Transgender Advocacy Network (SBTAN) APP-003532 ____________________________________________________________________________________________________________________________________________________________________________________ “This event brings together Santa Barbara families, friends, and allies to celebrate the contributions and creativity of our transgender community around the International Transgender Day of Visibility recognized annually on March 31st.” Amount Requested: $6,000
Recommended Grant Award: $3,570
Santa Barbara Trust for Historic Preservation APP-003518 ____________________________________________________________________________________________________________________________________________________________________________________ “The Santa Barbara Trust for Historic Preservation (SBTHP) is requesting support for a project to record Chumash working songs to be played as a sound effect in the Bodega at Casa de la Guerra, a historic house museum where Chumash people historically worked as servants.”
Amount Requested: $6,000
Recommended Grant Award: $4,500
Santa Barbara Vocal Jazz Foundation APP-003546 ____________________________________________________________________________________________________________________________________________________________________________________ “SBVJF requests a grant to support our signature Journey through Jazz program for the 2025-26 school year. We will offer 7-week residencies at 4 Santa Barbara area schools, including Washington Elementary within the city limits, to about 225 students.”
Amount Requested: $3,200
Recommended Grant Award: $1,913
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Tomato Theatre Company APP-003511 ____________________________________________________________________________________________________________________________________________________________________________________ “SB Tomato Theatre Company is a nonprofit organization run by local high school students dedicated to providing affordable theatre education to youth in our community. We run a variety of programs throughout the year, including a free Summer Camp.”
Amount Requested: $1,200
Recommended Grant Award: $1,200

GRANT APPLICATIONS NOT RECOMMENDED FOR COMMUNITY ARTS FUNDING Debra Herrick – Lum Art Magazine APP-003559 ____________________________________________________________________________________________________________________________________________________________________________________ “A special issue of Lum Art Magazine spotlights Santa Barbara artists through original artworks and articles shaped by curators’ and critics’ perspectives, fostering greater public understanding of the region’s creative contributions.” Amount Requested: $6,000
Recommended Grant Award: $ 0
Masq(p)arade! APP-003573 ____________________________________________________________________________________________________________________________________________________________________________________ “Masq(p)arade! is a performance progressive that transforms Santa Barbara’s Historic Arts District into an open-air stage for a wide array of performing arts. Based at the Pianos on State installation, this free event features a roving series of original performances by regional artists.”
Amount Requested: $5,400
Recommended Grant Award: $0
OMG Youth Sports and Enrichment APP-003530 ____________________________________________________________________________________________________________________________________________________________________________________ “Color Outside the Lines: Neurodiversity & Creativity Fair is a joyful, one-day public event in Santa Barbara that celebrates neurodiverse children, youth, and families through inclusive art, sensory-friendly activities, and community connection.”
Amount Requested: $6,000
Recommended Grant Award: $0
Peabody Charter School APP-003554 ____________________________________________________________________________________________________________________________________________________________________________________ “Storyteller’s Club would offer select Peabody elementary students (3 clubs, 15 students each, 45 total) a deep dive into a storytelling adventure where they can explore how stories are created and shared with others.” Amount Requested: $1,550
Recommended Grant Award: $0
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Performing and Visual Arts Camp (PVAC) APP-003503 ____________________________________________________________________________________________________________________________________________________________________________________ “The Performing and Visual Arts Camp (PVAC) is a 4-week summer arts camp for underprivileged youth (aged 9 to 15) from Santa Barbara to experience the creative process of musical production.” Amount Requested: $6,000
Recommended Grant Award: $0
UCSB Dance Company APP-003516 ____________________________________________________________________________________________________________________________________________________________________________________ “UCSB Dance Company will present high-energy, educational lecture-demonstrations in Santa Barbara City Schools.

Under the direction of Delila Moseley, with MC Nathan Calzada leading the show, 14 dancers "wow" the students with entertaining dances.”
Amount Requested: $6,000
Recommended Grant Award: $0

APPLICATIONS INELIGIBLE DUE TO ELIGIBILITY CRITERIA
Dance with Harout APP-003561 ____________________________________________________________________________________________________________________________________________________________________________________ “DWH aims to produce three new choreographies in 2026, to be shown in free, public performances in Santa Barbara.

This grant would go towards paying artists' wages for Harout and his rehearsal assistant, and towards producing a new professional video.”
Amount Requested: $6,000
Recommended Grant Award: N/A
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CITY OF SANTA BARBARA ARTS ADVISORY COMMITTEE
2025-2026 Organizational Development Grant Award Recommendations The Organizational Development Grant Program strengthens Santa Barbara’s arts ecosystem by investing in the sustainability and growth of local arts organizations. Through support for operational, marketing, and promotional expenses, these grants help organizations expand their capacity, reach wider audiences, and increase earned income. By fostering stability and innovation, the program not only enhances access to the arts, but also contributes to the city’s cultural vitality and economic health—ensuring that local arts organizations remain resilient, impactful, and positioned to thrive long into the future.

ORGANIZATIONAL DEVELOPMENT GRANT GENERAL INFORMATION
Total OD Grant Funding Requested: $197,800
Total OD Grant Funding Available: $103,000
Total Number of Applicants: 14
Number of Applicants Recommended for Funding: 10

GRANT APPLICANTS, DESCRIPTIONS, AND AWARD AMOUNT RECOMMENDATIONS (Please note: the grant descriptions provided below are submitted by the applicants as part of their grant application.)

GRANT APPLICATIONS RECOMMENDED FOR FUNDING
ARTSPACE INC DBA Center Stage Theater APP-003580 ____________________________________________________________________________________________________________________________________________________________________________________ “Center Stage Theater will host a 3-day LGBTQ Theater/Dance Festival during September 2026. The event will celebrate the diverse voices and talents within our local queer community. The festival will feature contemporary dance, queerthemed theater productions.” Amount Requested: $15,000
Recommended Grant Award: $9,475
Children's Creative Project APP-003547 ____________________________________________________________________________________________________________________________________________________________________________________ “Thank you for considering our request for a $15,000 Organizational Development grant to support Children’s Creative Project (CCP) in creating a marketing plan to celebrate the 40th I Madonnari Italian Street Painting Festival in 2026 and improving donor cultivation.”
Amount Requested: $15,000
Recommended Grant Award: $12,750
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Creative Netwerk APP-003568 ____________________________________________________________________________________________________________________________________________________________________________________ “Creative Netwerk in Santa Barbara will use the OD funding to expand org capacity in response to rapid growth. The project will deepen impact through staff and system support to expand artist residencies and youth programming in dance, DJing, and wellness in the city.”
Amount Requested: $15,000
Recommended Grant Award: $11,000
Explore Ecology APP-003565 ____________________________________________________________________________________________________________________________________________________________________________________ “The EE Explore Your Creativity project will offer a series of low-cost outdoor creative reuse workshops intended to inspire and engage all abilities and ages. This community-building experience will transform the parking lot at our downtown Art From Scrap into a welcoming "Creative Zone."” Amount Requested: $15,000
Recommended Grant Award: $9,475
Flamenco Arts Festival APP-003493 ____________________________________________________________________________________________________________________________________________________________________________________ “To elevate public awareness, increase audience reach and engagement, and solidify our role as a key and valuable Latino organization through significant investment in our marketing capacity locally, nationally, and internationally.” Amount Requested: $15,000
Recommended Grant Award: $12,750
Gunpowder Press APP-003551 ____________________________________________________________________________________________________________________________________________________________________________________ “Gunpowder Poetry requests support to establish sustainable accounting systems. Founded in 2013 and now in its second year as a 501(c)(3), Gunpowder publishes books and supports events that nourish Santa Barbara’s literary culture.”
Amount Requested: $2,800
Recommended Grant Award: $1,800
Notes for Notes APP-003539 ____________________________________________________________________________________________________________________________________________________________________________________ “The N4N professional development initiative will equip Producers with advanced skills and tools to elevate programming, deepen community impact, and amplify each youth’s experience in N4N Studios.” Amount Requested: $15,000
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Recommended Grant Award: $11,000
Santa Barbara Arts Collaborative APP-003501 ____________________________________________________________________________________________________________________________________________________________________________________ “The Santa Barbara Arts Collaborative seeks funding to improve our reach, increase earned income, and grow needed support for community artists by expanding new programs including the ArtZone App, Area Meeting, and Community Arts Residency, as well as grow existing programs.”
Amount Requested: $15,000
Recommended Grant Award: $12,750
Santa Barbara Choral Society APP-003557 ____________________________________________________________________________________________________________________________________________________________________________________ “SB Choral Society is seeking a $15K grant to provide vital operating support as the organization enters a crucial period of renewal. This investment will empower us to stabilize operations, strengthen our business and fundraising capacity, and safeguard the SB Choral Society's legacy.”
Amount Requested: $15,000
Recommended Grant Award: $11,000
Santa Barbara Gay Men's Chorus APP-003576 ____________________________________________________________________________________________________________________________________________________________________________________ “The Santa Barbara Gay Men’s Chorus seeks funding to sustain its capacity to provide a safe, sober space for the LGBTQIA+ community to gather and create music. Recent growth, including our move to Lobero Theatre and expanding artistic staff, has increased financial pressures.”
Amount Requested: $15,000
Recommended Grant Award: $11,000

GRANT APPLICATIONS NOT RECOMMENDED FOR FUNDING
Camerata Pacifica APP-003520 ____________________________________________________________________________________________________________________________________________________________________________________ “A social media lead generation campaign provides proven results in terms of new contacts in our database, ultimately expanding audience reach, ticket sales revenue, and new. We are requesting funding to cover $15,000 (just the Santa Barbara portion) of the total marketing budget of $65,000.” Amount Requested: $15,000
Recommended Grant Award: $ 0
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Out of the Box Theatre APP-003522 ____________________________________________________________________________________________________________________________________________________________________________________ “Funding will support instrumental directors and developmental staff working with Out of the Box Theatre Company during its 2026-2027 season.”
Amount Requested: $15,000
Recommended Grant Award: $ 0
Santa Barbara Festival Ballet APP-003562 ____________________________________________________________________________________________________________________________________________________________________________________ “SB Festival Ballet requests support to partially fund a position of Dance School Manager. We have expanded our Board of Directors and they have prioritized school enrollment and Community Outreach as critical areas for new initiatives.” Amount Requested: $15,000
Recommended Grant Award: $ 0

APPLICATIONS INELIGIBLE DUE TO ELIGIBILITY CRITERIA
Santa Barbara Museum of Natural History APP-003544 ____________________________________________________________________________________________________________________________________________________________________________________ “The Sea Center’s annual Underwater Parks Day and World Oceans Day are free, family-friendly festivals that bring the Museum’s mission—to connect people with nature for the betterment of both—to life.” Amount Requested: $15,000
Recommended Grant Award: N/A

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Fiscal Year 2027 Community Development Block Grant Funding Process, Priorities and Criteria
RECOMMENDATION: That Council:

A. Approve the Community Development Block Grant (CDBG) proposed applicationreview process and the direction to the Community Development and Human Services Committee (CDHSC) on funding CDBG criteria and priorities; and B. Authorize staff to solicit proposals for CDBG grants for Fiscal Year 2027.

EXECUTIVE SUMMARY:

Annually, City Council reviews the priorities, criteria and process for allocating CDBG grant funds. Pending Council approval, a notice of funding availability will be disseminated and applications for Fiscal Year 2027 grants will be accepted from November 4 through December 11, 2025. Funding recommendations will be presented to Council by the Community Development and Human Services Committee (CDHSC) in late March 2026.

DISCUSSION:

Each year, the City of Santa Barbara receives Community Development Block Grant (CDBG) funds for activities that meet one of three national statutory objectives: 1) primarily benefit low- and moderate-income persons, 2) eliminate/prevent slums or blight, or 3) meet other urgent local community development needs.

CDBG funds may be used to provide decent housing, a suitable living environment or expanded economic opportunities to low- and moderate-income persons. In addition, fifteen percent (15%) of CDBG funds may be expended for “Public Service” activities.

Following Council approval, CDBG funds will be awarded to nonprofit organizations and City Departments to undertake activities that meet these objectives.

Agenda Item No. 14
File Code No. 610.05
Council Agenda Report
Fiscal Year 2027 Community Development Block Grant Funding Process, Priorities and Criteria
October 14, 2025

In October 2022, Council directed staff to transition the Human Service/CDBG Public Service grant program from an annual to a biennial award process; however, the CDBG Capital and Economic Development award process continues on an annual basis in order to efficiently reprogram1 funding toward immediate community needs and to encourage public participation in developing the Annual Action Plan.

In March 2026, after the Community Development Human Service Committee (CDHSC) has reviewed the six-month performance reports and conducted site visits of the Fiscal Year 2026 Human Service/Public Service grantees, CDHSC will present recommendations to Council regarding the continuation of the Fiscal Year 2026 Human Service/CDBG Public Service grant awards and make recommendations for Fiscal Year 2027 CDBG Capital and Economic Development grant awards.

Application Criteria and Funding Process
The application criteria previously adopted by Council can be found in Attachment 1 of this report. No changes to the criteria are recommended for Fiscal Year 2027.

The application schedule is included as Attachment 2. A mandatory application workshop will be held on November 11, 2025, where staff will outline the City’s funding requirements and the application-submittal process.

To maximize participation, upon Council approval, staff will:
 Send a notice to interested applicants, including those who applied in the two most recent funding cycles, as well as to current grant recipients;  Publish a notice of funding availability in The Voice SB;  Issue a press release to local media; and
 Place notices on the City website and social media, The Voice, The Independent and on the Santa Barbara Nonprofit Resource Network website.

The online application form will be available to potential applicants starting on November 4, 2025 with a submittal deadline of December 11, 2025. During the application period, staff will be available by phone or email to provide guidance and answer questions. Staff will also post detailed “Frequently Asked Questions” information on the City’s website. In addition, as time permits, staff will review early application submittals (in the order received) and provide feedback to those applicants, who can then edit their submittals until the deadline.
1 Reprogramed funds are funds that were not used in previous years due to the cancellation of projects or because construction bids were less than anticipated. They must be used in subsequent award cycles.

Council Agenda Report
Fiscal Year 2027 Community Development Block Grant Funding Process, Priorities and Criteria
October 14, 2025

The Community Development and Human Services Committee (CDHSC), which is appointed by Council, will evaluate proposals, interview applicants in January and February, and make funding recommendations to Council in late March 2026.

Funding Priorities
Below are the annual funding priorities that were adopted by Council in the recent development of the 2025-2029 City’s Consolidated Plan:
 Homeless Assistance – Programs that provide services to homeless individuals and families and victims of domestic violence;
 Decent Housing – Support of local housing partners to enable them to acquire, construct, or rehabilitate affordable housing, and provide security deposit and tenant based rental assistance;
 Community Development Needs and Services – Support childcare centers and/or programs that provide childcare; community centers or agencies that provide youth educational/recreational and/or senior programs; and/or health centers that provide care to low and moderate-income residents;
 Public Facilities and Infrastructure – Capital projects that improve facilities of organizations that serve low- and moderate-income residents, and public infrastructure and parks improvements in low- and moderate-income neighborhoods; and
 Economic Development – Support of programs that provide self-employment training and small business loans.

No changes to the funding priorities are currently being recommended.

BUDGET/FINANCIAL INFORMATION:

Fiscal Year 2027 CDBG Funding
The City’s CDBG allocation fluctuates each year. For planning purposes, staff is estimating the level of CDBG funding for Fiscal Year 2026 in an amount of $846,418.

Should the City’s CDBG exact allocation amount not be announced prior to completion of the funding-recommendation cycle, the CDHSC will incorporate a contingency plan into its recommendations to Council that accounts for increases or decreases in CDGB funds.

ATTACHMENTS: 1. HS/CDBG FY 2026–2027 Funding Criteria, Application Review Process

2. Proposed FY 2026–2027 Application Schedule
PREPARED BY: Lindsey Drewes, Community Development Programs Specialist Council Agenda Report
Fiscal Year 2027 Community Development Block Grant Funding Process, Priorities and Criteria
October 14, 2025

SUBMITTED BY: Barbara Andersen, Senior Assistant to the City Administrator and Acting Housing & Human Services Manager
APPROVED BY: Kelly McAdoo, City Administrator

COMMUNITY DEVELOPMENT BLOCK GRANT FY 2026-2027

FUNDING CRITERIA

1. Proposed programs/projects must primarily benefit low- and moderate-income residents, as defined by the U.S. Department of Housing and UrbanDevelopment.

2. Capital Project and Housing Rehabilitation applicants must be tax-exempt 501(c)(3) non-profit organizations incorporated or organized in the State of California or another state of the United States, or local units of government, whose proposals directly benefit low- and moderate-income City of Santa Barbara residents. Housing Rehabilitation applicants must be established affordable housing providers within the City of Santa Barbara. Economic Development applicants may be for-profit entities if they provide technical assistance, advice, and business support services to owners of microenterprises and persons developing microenterprises per CFR 570.201(o)(1)(ii).

3. Proposals must address specific social or physical needs and conditions of the people they propose to serve. Documentation could include social indicators, demographic data, surveys, community plans, and need as perceived by potential consumers.

4. Economic Development Proposals must identify at least one and no more than three Measurable Outcomes, which are defined as: Specific and realistic results or changes that a client will experience from participating in the applicant’s program or receiving the applicant’s service.

5. Proposals must present a marketing strategy, which includes specific efforts to reach ethnic communities.

6. Proposals must demonstrate support from the people for which the program is proposed.

7. Applicants must clearly identify all funding sources and justify their proposal if services are available through another source.

8. Applicants shall demonstrate financial stability. Applicants shall seek funding, or demonstrate funding support from diverse public/private sources. The City shall not be committed to total support of a program, nor shall the City be committed to continuing funding in the case that other support is withdrawn.

Administrative/overhead costs shall be held to reasonable levels. Additionally, applicants shall demonstrate sufficient net assets or operating reserves to cover the organization’s liabilities, operating deficits, or debt.

9. City CDBG funds shall support only those services and projects that directly benefit residents of the City of Santa Barbara. Programs operated on a countywide or regional basis must show documentation that: (a) services benefit City residents, and (b) sufficient funds are available to support non-city residents.

10. Proposals shall identify geographical areas where they propose to provide services.

Attachment 1

11. Proposals that pay the local minimum wage (as described in Chapter 9.128 of the City of Santa Barbara Municipal Code) to all staff for which Economic Development funds are requested shall receive an extra point in the rating process. .

GRANT APPLICATION REVIEW AND INTERVIEW PROCESS
A thirteen-member committee appointed by the City Council will review submitted proposals and make funding recommendations to the City Council. The City Council makes final decisions on funding. The Community Development and Human Services Committee (CDHSC) includes representatives of the following groups:
• Youth-Oriented Services
• Business/Economic Development Community
• Human Services
• Latino/Hispanic Community
• African American Community
• Senior Citizens
• Homeless-Related Services
• Four (4) Low Income Neighborhoods: Eastside, Westside/Lower Westside, Downtown Area, and Oak Park
• Disabled Community
• Housing Authority Representative
The Committee may request additional information on any part of the submitted written proposal. Applicants are advised that they may be invited to an interview before the committee to answer questions or will receive a written request for additional information from city staff.

In reviewing applications, the following evaluation criteria are used by the CDHSC:
• Agency: Applicant’s track record or past performance; salaries too high or too low; large wage disparity between management staff and program staff; • Board: Composition of board; their role within the organization; diversity of board members (e.g. racial, ethnic, socioeconomic, etc.); and level of involvement by board members;
• Program: Applicant has bi-cultural/bi-lingual staff, the quality of services provided, staff capacity (e.g. training, experience, client to staff ratio), program corresponds with the agency’s mission, level of program monitoring; • Measurable Outcomes: Applicants must identify realistic, measurable results or changes that a client will experience from receiving theprogram service; • Need: Level of duplication of service, extent of collaboration with other agencies, composition/diversity of clients, target population, funding request corresponds to the number of clients served; and
• Finances: Agency revenue/expenses are identified, percentage of non-City funding sources secured, diversity of funding sources, overreliance on City funds, high amount of year- end excess or deficit funds, significant increase or decrease in request from prior year, assets and financial stability of the organization.

For Capital and Housing Rehabilitation proposals, these additional categories are evaluated:
• Project Description: Scope of project is clearly defined, it meets federal, state and local requirements, and the project is feasible;
• Project Need: Applicant identifies whom will benefit from the project, there is clear identification of need, the project will satisfy demonstrated need, the project aligns with the applicant’s mission;
• Project Cost: Itemized cost estimate from a contractor is provided, the cost is reasonable, the project can be completed without full City funding, and applicant’s demonstrated leveraging of other funding.

All meetings are at the David Gebhard Meeting Room – 630 Garden St. unless indicated otherwise City of Santa Barbara
CDBG/HS Grants Funding Schedule FY 2026-2027
 Tuesday 9.23.25 
Thursday 02.12.26
Public Hearing on Community Needs CDHSC deliberation meeting 6 p.m.
 Tuesday 10.14.25 
Tuesday 02.17.26
Council Action on Funding Process
Council Chambers | 735 Anacapa St.

CDHSC confirms scores
6 p.m.
 Tuesday 11.04.25  Thursday 02.19.26
Workshop Slides, Application and Application
Documents Made Available
CDHSC confirms scores
6 p.m.
 Thursday 11.13.25  Tuesday 02.24.26
Mandatory Applicant Workshop CDHSC Form and Vote on Funding Recommendations
6 p.m.
 Thursday 12.11.25  Thursday 02.26.26
Application deadline
4:30 p.m.

Recommendations announced
 Monday 12.15.25 
Tuesday 03.24.26 (tentative)
Applications available to CDHSC Recommendations to City Council Council Chambers | 735 Anacapa St.
 Tuesday 01.27.26
Regular Committee Meeting
6 p.m.


01.29.26-02.10.26
Applicant Interview Period
ATTACHMENT 2

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and City Council
FROM: Community Development Department
SUBJECT: Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
RECOMMENDATION: That Council:

A. Determine that the ordinance is consistent with the General Plan; B. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Santa Barbara Municipal Code by Adding Section 30.185.045 Pertaining to Regulations for Adaptive Reuse Projects; and
C. Direct staff to study and pursue options and opportunities for increasing housing downtown consistent with Housing Element policies, including analyzing the City’s Storm Water Management Program and permit requirements.

EXECUTIVE SUMMARY:

The proposed adaptive reuse ordinance facilitates and incentivizes the conversion of nonresidential buildings to housing by offering development incentives. Per direction from Council on September 9, 2025, staff analyzed removal of the inclusionary housing requirement for adaptive reuse projects in the Central Business District (CBD) and revised the proposed ordinance to address inclusionary housing requirements in the CBD as well as increased maximum average unit sizes. Staff’s recommendation for applying inclusionary requirements to both ownership and rental adaptive reuse projects, including within the CBD, is summarized in Table 1 below.

Agenda Item No. 15
File Code No. 610.04
Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

Table 1: Staff Recommendation: Inclusionary Housing Requirements for Adaptive Reuse Projects
Adaptive Reuse
Project Size
Ownership
(Citywide)
Rental
(outside CBD)
Rental
(within CBD)
1 unit N/A N/A N/A
2-4 units In-Lieu Fee N/A N/A
5-9 units In-Lieu Fee In-Lieu Fee N/A
10-39 units 15% Middle 10% Moderate N/A
40+ units 15% Middle 10% Moderate 10% Moderate
DISCUSSION:

The proposed adaptive reuse ordinance implements Housing Element Program HE-1:

Facilitate Conversion of Nonresidential Buildings to Housing, to carry out Housing Element Goal 1: Create New Housing.1 HE-1 directs staff to draft an adaptive reuse ordinance to facilitate the conversion of buildings to multi-unit residential or mixed-use residential spaces.

On September 9, 2025, City Council voted (5:2) in support of a motion directing staff to change the adaptive reuse ordinance as follows:
 Remove the inclusionary housing requirement for adaptive reuse projects in the Central Business District (CBD), except for projects with a minimum unit quantity (staff to determine the appropriate minimum unit quantity),  Increase maximum average unit sizes to 1,200 square feet for rental and 2,000 square feet for ownership, and
 Evaluate ownership inclusionary housing requirements.

In response, staff has completed additional evaluation of the inclusionary housing requirements for adaptive reuse projects in the CBD, including a minimum unit quantity at which to require rental inclusionary housing requirements and ownership inclusionary housing requirements.

Outreach
Since the September 9th Council hearing, staff conducted four external focus group interviews to gather additional public opinion to inform the adaptive reuse ordinance.

Participants from past public engagement on the adaptive reuse ordinance were included in these most recent interviews to talk about the inclusionary housing changes directed by Council.
1 Housing Element Goal 1: Create New Housing. Create new healthy, safe, and energy-efficient housing that meets community needs, within our resources.

Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

Recent Change in Use Proposals
Staff has identified 19 example changes in projects2 that align with the proposed adaptive reuse project definition (converting an existing nonresidential building to a residential use). These example projects informed the drafting of the adaptive reuse ordinance and serve as the foundation for the analysis in this Council Agenda Report. Eleven of the evaluated projects are within the CBD and account for almost 75 percent of the proposed units.3 These example projects range from a single residential unit up to 112 proposed units, with the majority of projects proposing fewer than 20 units (82%). See Attachment 1 for more information about the example change in use projects.

Table 2: Example Change in Use Projects
Within CBD Outside CBD
Application
Submitted
Count of PLNs or
PREs submitted
Total Units
Proposed
Count of PLNs or
PREs submitted
Total Units
Proposed
2019 1 2 1 23
2020 0 0 1 1
2021 1 1 1 1
2022 2 27 1 1
2023 1 8 1 2
2024 5 156 2 38
2025 1 1 1 2
Total 11 195 8 68
Over the past seven years, the City has averaged 2.5 applications annually for change in use projects that align with the proposed adaptive reuse definition. Staff anticipates the annual rate of adaptive reuse applications to remain fairly consistent with the historic average even considering the adaptive reuse ordinance facilitating conversions with development incentives, for reasons outlined below. Change in use projects are constructed at a much lower rate than applications are received – only four of the example change in use projects have been constructed in the same seven-year timeframe, resulting in a trend of 0.6 projects completed annually.

Analysis
Not all buildings are suitable candidates for adaptive reuse. Considerations such as location, building age, construction method, and window placement and floorplate layout, 2 Example change in use projects have submitted a Planning Application (PLN) or Pre-Application Review (PRE) since 2019. Some project sites have multiple PLN or PRE applications in this timeframe. A project site was considered only once using the most recent application for the analysis. 3 Note that this high percentage is due mainly to the preliminary proposal at Nordstrom, which includes 112 units.

Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

just to name a few, determine a building’s appropriateness for residential use and financial viability for reuse. A 2024 legislative report by the California Department of General Services to identify state buildings suitable for adaptive reuse into housing found only three sites as viable candidates (23 percent of initial sites list).4 Identifying nonresidential buildings ideal for adaptive reuse to housing requires a case-by-case building analysis to determine possible unit quantities a conversion may yield and must consider development best practices and market conditions to inform financial feasibility.

In talking with development professionals in the recent focus group interviews, few buildings in the CBD were identified as likely candidates for adaptive reuse to residential by the participants.

Throughout the drafting and analysis of the adaptive reuse ordinance, staff looked to precedent adaptive reuse ordinances for examples and research. Larger jurisdictions included economic studies in their ordinance adoption, which staff has used as reference.

For instance, the City of Los Angeles amended their adaptive reuse ordinance in 2024, an update to their 1999 adaptive reuse ordinance, and hired a consultant for a feasibility analysis.5 The considerations and associated feasibility in the study, while not prototypical of Santa Barbara development, are relevant to explain the many characteristics of an existing building that determine suitability for adaptive reuse. This study, and others, show the complexity and uniqueness of each adaptive reuse project and the difficulty for staff in identifying likely buildings that may be well suited for conversion to residential and which may benefit from the adaptive reuse ordinance.

To better understand the complexities of adaptive reuse to housing, staff also reviewed published research. Constraints to an adaptive reuse project include the construction method of the existing building and its ability to meet current building code requirements such as fire separation, seismic retrofits, or egress requirements.6 Characteristics that are ideal for converting a building to housing include shallow floor plates (depth of space from windows), the quantity of windows in the façade, and the location.7 Complications in converting nonresidential structures to housing require extensive suitability evaluation at the outset and throughout the demolition and construction process to address unknowns 4 “Adaptive Reuse Feasibility Study” for the Department of General Services, published in 2024. https://www.dgs.ca.gov/resources/legislative-reports
5 “Feasibility Analysis of Adaptive Reuse Projects Supported by the Proposed Citywide Adaptive Reuse Ordinance (ARO) Update” begins on page 160 of the October 10, 2024 Planning Commission Staff Report. https://planning.lacity.gov/odocument/572f2af1-6d0c-4950-8d86-b21d65634aba/CPC-2023-5986- CA%20Citywide%20Adaptive%20Reuse%20Recommendation%20Report%20-%20full.pdf 6 “Behind the Façade: The Feasibility of Converting Commercial Real Estate to Multifamily” by the Urban Land Institute. https://knowledge.uli.org/-/media/files/research-reports/2023/behind-thefacade_conversionreport.pdf?rev=93f81cc8c9dc44b395da065a300c383e&hash=F7F7C5EFA7173F36A0B49FD0B2E4F3C5 7 “Adaptive Reuse Challenges and Opportunities in California” by the Terner Center for Housing at University of California, Berkeley. https://ternercenter.berkeley.edu/wp-content/uploads/2021/11/AdaptiveReuse-November-2021.pdf Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

and concerns for a successful adaptive reuse project.8 All the reviewed reports say essentially the same thing – adaptive reuse projects are possible, but each of them are unique and there is no “cookie-cutter” conversion. Each building requires close scrutiny of the building’s construction method, the possible unit layouts based on the existing floor plates, as well as egress and access. Additionally, the financial aspects of purchasing a building and the construction costs for the reuse must be weighed against future revenue from residential use compared to any other possible uses (such as remaining as commercial/office or converting to another permitted use). The evaluation required to identify buildings well suited for adaptive reuse is nuanced and detailed and requires more data than staff has available to estimate the buildings most likely to be adaptively reused or to quantify the number of units any building may propose.

Minimum Unit Quantity in CBD
Council’s discussion on the adaptive reuse ordinance proposed a minimum unit quantity to require inclusionary housing requirements in the CBD, with the quantity of 25 units being debated as an initial idea. Council directed staff to determine the appropriate minimum unit quantity. Staff considered various factors in identifying an appropriate minimum unit quantity: typical unit quantities from example change in use projects in the CBD, inclusionary housing requirements and rounding rules, and a high-level estimation of possible unit quantities if downtown buildings are adaptively reused based on assumptions "ground-truthed” in data from the example change in use projects. Then, we weighed that information with the overall goals of the program, which are to facilitate building conversion to increase housing, preserve historic buildings, reduce construction waste and extend the life of existing buildings, focus development in areas with existing transit and services, and revitalize the downtown.

First, staff identified trends in typical unit quantity from example change in use projects in the CBD. The buildings converted (or proposed for conversion) in the example change in use projects are typical of buildings in Santa Barbara’s CBD—two or three stories, built lot line to lot line covering the entire site, no existing parking and no parking required per AB 2097, and limited possibility for open yard. Example change in use projects have proposed an average of 8.5 units in the CBD, excluding the PRE application of 112 units at 817 State Street (Nordstroms). Of all the applications, only two projects exceeded 25 units, one of which is the proposed reuse of 817 State Street to create 112 units. This trend is anticipated to continue, with a high likelihood that adaptive reuse projects will typically propose 10-20 units. To align with the program intent to facilitate the conversion to housing, this “typical” adaptive reuse project size informed staff’s suggested minimum. 8 “From Workspace to Homebase: Exploring the viability of office to residential conversion in San Francisco’s changing real estate market” research paper by San Francisco Bay Area Planning and Urban Research Association (SPUR) https://www.spur.org/sites/default/files/2023- 10/SPUR_From_Workspace_to_Homebase.pdf
Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

Second, staff looked to the rounding requirements in the rental inclusionary housing ordinance. Any project proposing more than 10 units must round up any inclusionary requirement of 0.5 or more. Therefore, a project of 25 rental units would require three inclusionary units (25 x 10% = 2.5, rounds up to 3), the same quantity of onsite units a 30-unit project would be required to provide. Since a primary goal of this program is to incentivize housing and revitalize downtown, the impacts of this rounding requirements informed staff’s suggested minimum.

Finally, informed by adaptive reuse studies undertaken by other jurisdictions, reports from multiple organizations on the many considerations that influence adaptive reuse suitability, analysis of example change in use projects, and insight shared during focus group interviews, staff used existing planning data to evaluate possible buildings in the CBD for adaptive reuse to housing.9 Ultimately, the analysis aligned with research findings – fewer than 30 sites were identified as potential for larger-than-typical (10-20 unit) adaptive reuse projects, and those that are suitable require a case-by-case analysis to determine if the adaptive reuse project would be financially feasible.

Ultimately, staff’s goal was to capture the community benefit of inclusionary housing on the larger projects without overburdening the smaller projects such that they are infeasible. As such, staff recommends Council set the minimum unit quantity to require inclusionary housing in adaptive reuse projects in the CBD at 40 residential rental units.

See Table 1 for a summary of staff’s recommended inclusionary housing requirements for adaptive reuse projects. This “cap” meets the intent of the Council motion to further incentivize adaptive reuse in the CBD to address the economic and revitalization benefits of housing downtown while still capturing inclusionary housing units from larger adaptive reuse projects. There are few buildings uniquely suited to adaptive reuse to housing and incentivizing their conversion to new residential units maintains the existing building fabric of downtown while increasing the economic vitality of the CBD.10 Additionally, a minimum project size of 40 units facilitates typical 10-20 unit adaptive reuse projects while also supporting the program goals of preserving historic buildings and reducing construction waste by extending building life to focus development and revitalize downtown. 9 This analysis comes with many caveats: it is very high-level, it is based on older data collected for a previous planning effort, and it does not account for any nuance or complexity inherent in all adaptive reuse projects. In no way does this analysis identify or exclude any existing building and its appropriateness or possibility for adaptive reuse to residential, nor should it be used to inform any proposed project or offer as a guarantee that a building may be converted by the property owner. Staff assumed 65 percent efficiency in reuse of existing floor area and an average unit size of 750 square feet. Efficiency in reuse means how much of the building’s total floor area is used as rentable or livable space (in a unit) versus non-rentable areas like hallways, elevators or stairways, lobbies and other common spaces (the remaining 35 percent). 10 Residential has a greater positive impact on economic vitality of a downtown compared to an office. “A New Era of Downtown Opportunity” by David Dixon https://www.cnu.org/publicsquare/2022/04/18/new-eradowntown-opportunity Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

A vital component to setting any exception to the inclusionary housing requirements is an understanding of the lost opportunity when changing the requirements, meaning how many inclusionary units or in-lieu fees may not be captured due to the exception. Setting a minimum unit quantity of 40 units to require inclusionary housing in the CBD could see the possible loss of three moderate income inclusionary units and approximately $160,000 in in-lieu fees based on projects already in the pipeline.11,12 For context, in the seven years the inclusionary requirements have been in place for rental projects, the city has added 13 moderate income restricted inclusionary units and collected $397,188 in inlieu fees from rental projects. Looking to the annual trend of constructed example change in use projects and typical project sizes in the CBD, planning staff foresees a possible loss of one moderate income unit associated with adaptive reuse projects in the CBD annually.

While fewer moderate income units would be an opportunity cost of changing inclusionary rental housing requirement in the CBD, in the context of the City’s RHNA allocation of 1,441 new moderate-income units and 8,001 total units, the lost inclusionary units must also be balanced by the overall addition of new market-rate units. Adaptive reuse projects in the CBD that would account for the lost moderate income unit(s) could foreseeably provide 20-30 new housing units in the CBD annually.

As with setting a threshold for any zoning requirement, an applicant may propose a project just shy of the threshold so as to avoid the requirement. No matter what minimum unit quantity is adopted by Council, an adaptive reuse project in the CBD may propose a project just below the minimum to avoid the inclusionary housing requirement.

Additionally, accessory dwelling unit (ADU) regulations allow multi-unit residential sites to create up to 25 percent of the existing unit quantities on site as ADUs if converted from and contained within existing non-livable areas.13 For example, a project could propose 39 units to stay under a potential 40-unit threshold yet also provide 10 ADUs resulting in 49 total units while avoiding any inclusionary housing requirements.14 Finally, it is important to remember a potential alternative to reusing the building as housing is maintaining existing use, reusing as another allowed use, or demolishing the building and using state density bonus law (SDBL) to achieve desired unit quantities.

Under a SDBL scenario, existing development standards can be waived by the applicant 11 Unit and in-lieu fee amount values assume all projects with a PRE and PLN application without an issued a building permit will proceed with unit quantities in the evaluated applications. 12 The single project identified for this inclusionary unit amount proposes 26 units in total. The single project identified for this in-lieu fee amount proposes eight units in total. 13 Government Code §66323 and SBMC Section 30.185.040.L.3, Configuration – Two-Unit, Multi-Unit, or Mixed-Use Lots.
14 Note that the City’s current ADU Ordinance requires that these units need to be on a separate permit after the adaptive reuse units are completed.

Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

and the City retains little local control over the design outcome. This could have a negative effect on the character of our downtown.

Inclusionary for Ownership Projects
Staff reviewed the inclusionary housing requirements for ownership unit projects as well as rental unit projects. While similar in their intent to provide below market rates units, the impact of the rental inclusionary housing requirements have been a greater topic of discussion since their adoption in 2019. Multi-unit residential development has almost exclusively been rental units since the AUD Program came into effect in 2013, with fewer condominiums compared to past trends.15 Following a similar majority, in-lieu fees collected since adoption of inclusionary requirements for rentals have been almost 95 percent from rental projects.16 Additionally, ownership inclusionary units provide opportunities for middle income household homebuyers. Staff recommends the Councildirected exemption from inclusionary housing requirements apply only to adaptive reuse projects providing rental units in the CBD.

Maximum Average Unit Size
The maximum average unit sizes have been increased back to the original staff recommendation of 1,200 square feet for rental projects and 2,000 square feet for ownership projects from the Planning Commission motion reducing them, per Council’s motion (refer to Section G of the Ordinance). Larger maximum average unit sizes allow projects to more creatively fit new residential units into an existing building, account for additional condominium space requirements in the zoning ordinance, and increase flexibility for an adaptive reuse project.

General Plan Consistency
All zoning ordinance amendments must be found consistent with the General Plan (SBMC Section 30.235.100). Staff finds that the adaptive reuse ordinance is consistent with General Plan policies and programs that encourage adaptive reuse, a mix of land uses, sustainable neighborhood planning, and infill housing. Of note, the Council-directed changes to inclusionary housing requirements for adaptive reuse projects in the CBD and Housing Element goals and policies supportive of affordable housing prioritization can be found to be in alignment by retaining ownership inclusionary housing requirements for all adaptive reuse projects and maintaining rental inclusionary housing requirements for 15 The AUD Program Progress Report found that 98.5 percent of units developed under the AUD Program are rentals. Comparatively, under Variable Density, only 5 percent of developed units were rentals. 16 In-lieu fee amounts for inclusionary units collected as of June 30, 2025. Ownership unit inclusionary is

5.6 percent and rental unit inclusionary is 94.4 percent of collected inclusionary unit in-lieu fees.

Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

larger projects in the CBD and all projects outside the CBD.17 See Attachment 1 for the consistency analysis and full text of General Plan goals and policies that support the adaptive reuse ordinance.

Barriers to Housing Downtown
Staff considered many development standards that may impact adaptive reuse projects, even though the Planning Division only has direct control over standards in the zoning ordinance. Addressing individual water meters was one such area, and a related ordinance addressing this issue was brought forward by the Water Resources Department in step with the adaptive reuse ordinance. Compliance with the City’s Storm Water Management Program (SWMP) was another of the issue areas analyzed, and has also been brought up by Council. As discussed previously, staff anticipates that most adaptive reuse projects will be Tier 1 or 2 projects, and therefore compliance should not be problematic. However, understanding Council’s larger concern about existing barriers to developing housing, especially in downtown, staff requests that Council provide direction to study alternative storm water compliance options downtown to provide additional compliance pathways and to evaluate other potential enhancements or changes to the SWMP that could further facilitate the development of housing in the downtown core. Looking further into these issues is also consistent with Housing Element policies, which identified evaluating governmental and non-governmental constraints to housing as a goal.

BUDGET/FINANCIAL IMPACT:

This action does not have a budget/financial impact on the City.

SUSTAINABILITY IMPACT:

Adaptive reuse is considered sustainable development because it extends the life of existing buildings and reduces construction waste and carbon emissions produced in the manufacturing of new materials.

ENVIRONMENTAL REVIEW:

Staff has determined this action qualifies for an exemption from further environmental review under Section 15061(b)(3) [General Rule] of the California Environmental Quality Act (CEQA) Guidelines because it can be seen with certainty that the ordinance will not have a significant effect on the environment. The proposed adaptive reuse ordinance 17 Housing Element Goal 2: Prioritize Affordable Housing and Housing Element Policy 2.1: Prioritize Affordable Housing and Community Priority Projects
Council Agenda Report
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025

establishes a regulatory framework for converting existing structures to residential or mixed-use development and does not directly approve or authorize any specific construction, nor does it grant entitlements or directly result in any physical changes to the environment. Staff evaluated the ordinance in terms of land use, unit quantities, additions to the building envelope, and potentially contaminated soils.  Change in Use: Adaptive reuse projects are simply a subset of change in use projects that are allowed under the current zoning ordinance. Existing structures are already allowed to convert from a nonresidential use to residential units, consistent with General Plan land use designations. The ordinance does not change allowed uses in a zone and, therefore, does not result in new impacts compared to the existing regulatory setting.
 Residential Unit Quantities: In adaptive reuse projects, the number of new residential units is limited by the size of the existing building envelope and building code standards, rather than by density limitations. These units replace existing nonresidential uses, potentially resulting in lower environmental impacts compared to existing conditions. The number of units facilitated by the adaptive reuse ordinance is not anticipated to exceed any established regional growth forecasts or the Regional Housing Needs Allocation; therefore, the proposed ordinance would not have any growth-inducing impacts.
 Existing Building Envelope: Any project altering the façade or adding floor area outside the existing building envelope requires discretionary design review under the current zoning ordinance, which would be subject to site-specific environmental review. This requirement remains unchanged for adaptive reuse projects; therefore, the ordinance would not approve physical changes that would result in environmental impacts without site-specific environmental review.  Environmental Review: Adaptive reuse projects requiring a discretionary entitlement will continue to be subject to environmental review. For projects that do not trigger discretionary review, environmental requirements remain the same as for other allowed change in use projects, with one exception: if an adaptive reuse project involves foundation work or soil disturbance in areas where contaminated fill may be present, the appropriate agency must determine that the site is suitable for residential occupancy. This new requirement would increase safety from hazardous sites for adaptive reuse projects. As written, the proposed ordinance provides an added environmental safeguard related to public health protection, further reducing the possibility of adverse environmental effects.

ATTACHMENTS: 1. Example Change in Use Projects

2. General Plan Policies and Consistency Analysis
PREPARED BY: Dana Falk, Project Planner
SUBMITTED BY: Allison DeBusk, Community Development Director APPROVED BY: Kelly McAdoo, City Administrator
ATTACHMENT 1
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
1 EXAMPLE CHANGE IN USE PROJECTS
Example Change in Use Projects
Change in Use
Project Address
Project
Status* Units Tenure
Inclusionary
/ Affordable
Units†

PLN / PRE
Submitted
BLD
Issued CBD
817 State St Pre-App 112 Rental Incl: 11 Mod. 2024 N/A Yes 135 E Ortega St Pending 26 Rental Incl: 3 Mod. 2024** N/A Yes 12 E Carrillo St Approved 12 + 2 ADU Rental Aff: 1 Low
Incl: 1 Mod. 2024** N/A Yes
821 State St Complete 14 Rental Aff: 3 Low
Incl: 1 Mod. 2022 2022 Yes
225 E Carrillo St Pre-App 12 + 1 ADU Rental Aff: 1 Low 2022 N/A Yes 1018 State St Pending 8 Rental In-Lieu Fee 2023 N/A Yes 1325 State St Complete 2 Rental None 2019 2020 Yes
801 State St Approved 2 + 1 ADU Ownership In-Lieu Fee 2024 N/A Yes 1309 State St Complete 1 Rental None 2021 2022 Yes
923 State St Pending 1 Rental None 2025 N/A Yes
28 W Figueroa St Pre-App 1 Ownership None 2024 N/A Yes
3055 De La Vina St Issued 33 Rental Aff: 32 VLI 2024 2025 No 16 W Mission St Complete 23 Rental Aff: 2 VLI 2019 2020 No 1514 Anacapa St Pending 3 + 1 ADU Rental None 2023 N/A No 1330 Cacique St Pre-App 3 Rental None 2024 N/A No
3890 La Cumbre Plaza Pending 2 Rental None 2023 N/A No
1635 State St Issued 1 Rental None 2022 2025 No
1801 State St Approved 1 Rental None 2021 N/A No
518 E Haley St Approved 1 Rental None 2021 N/A No
* Project Status as of September 2025. Complete projects have Certificate of Occupancy. Issued projects have building permits. Approved projects have received planning entitlements. Pending projects are in the planning review process. Pre-App projects have not submitted a Planning Application. † Inclusionary and/or affordable unit quantities may change as a project proceeds through entitlements. ** Projects with Pre-Application submitted in year prior to Planning Application submission year.

ATTACHMENT 2
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
1 GENERAL PLAN POLICIES AND CONSISTENCY ANALYSIS
Staff has determined that the Adaptive Reuse Ordinance is consistent with General Plan policies and programs that encourage adaptive reuse, a mix of land uses, sustainable neighborhood planning, and infill housing.

Consistency Analysis General Plan Policies
The adaptive reuse ordinance is
consistent with General Plan policies
supporting adaptive reuse. The ordinance
creates development incentives to
facilitate adaptive reuse projects that
convert existing nonresidential buildings
to housing.

Housing Element, Policy 1.3
Adaptive Reuse
Economic and Fiscal Health Element,
EF12.

Re-Use of Commercial Space
Historic Resources Element, HR4.

Adaptive Reuse
The adaptive reuse ordinance is
consistent with General Plan policies
supporting infill housing, efficient
development, and sustainable
neighborhoods. The ordinance intends to
revitalize and reuse existing buildings in
zones that allow multi-unit residential
uses to focus adaptive reuse projects in
areas near jobs, commercial services,
and transit.

Land Use Element, LG4.

Principles for Development
Land Use Element, LG15.

Sustainable Neighborhood Planning
Housing Element, Policy 1.1
Sustainable and Livable Neighborhoods
Housing Element, Policy 1.2
Infill Housing
Housing Element, Policy 1.7
Prioritize Housing and Community Benefit
Circulation Element, 8.5
Downtown Housing
Circulation Element, 13.2
Compact Development
The adaptive reuse ordinance is
consistent with General Plan policies to
protect industrial use. The ordinance
excludes industrial uses thereby
protecting those uses by not allowing
their conversion in projects using the
ordinance.

Land Use Element, LG8.

Manufacturing Uses
Economic and Fiscal Health Element,
EF15.

Protect Industrial Zoned Areas
ATTACHMENT 2
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
2 Consistency Analysis General Plan Policies
The adaptive reuse ordinance is
consistent with General Plan policies
supporting active transportation. The
ordinance reduces parking requirements
while maintaining all bicycle and
pedestrian requirements to promote
active transportation modes and goals.

Land Use Element, LG4.

Principle for Development
Land Use Element, LG15.

Sustainable Neighborhood Planning
Housing Element, Policy 1.1
Sustainable and Livable Neighborhoods
Circulation Element, 7.7
Bicycle Parking and Other Needs
The adaptive reuse ordinance is
consistent with General Plan policies for
more flexible and fewer regulations that
may impede housing development. The
ordinance provides development
incentives directly correlated to residential
uses to reduce constraints and allows for
more flexibility in other standards.

Housing Element, Policy 1.6
Reduce Constraints
Housing Element, Policy 1.8
Flexible Standards
The adaptive reuse ordinance is
consistent with General Plan policy to
minimize demolition. The reuse of existing
buildings reduces demolition and
upcycles existing buildings.

Historic Resources Element, HR3.

Discourage Demolition
ATTACHMENT 2
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
3 Land Use Element
Goals
Design: Protect and enhance the community’s character with appropriately sized and scaled buildings, a walkable town, usable and well-located open space, and abundant, sustainable landscaping.

Historic Preservation: Protect, preserve and enhance the City’s historic resources.

Policies
LG4. Principles for Development. Establish the following Principles for Development to focus growth, encourage a mix of land uses, strengthen mobility options and promote healthy active living.
o Focus Growth. Encourage workforce and affordable housing within a quarter mile of frequent transit service and commercial services through smaller units and increased density, transit resources, parking demand standards, targeted infrastructure improvements, and increased public areas and open space. Incorporate areas as a result of an employee survey. o Mix of Land Uses. Encourage a mix of land uses, particularly in the Downtown to maintain its strength as a viable commercial center, to include retail, office, restaurant, residential, institutional, financial and cultural arts, encourage easy access to basic needs such as groceries, drug stores, community services, recreation, and public space.
o Mobility and Active Living. Link mixed-use development with main transit lines; promote active living by encouraging compact, vibrant, walkable places; encourage the use of bicycles; and reduce the need for residential parking.

LG8. Manufacturing Uses. Preserve and encourage the long-term integrity of light manufacturing uses.
o LG8.2 Limit Residential
Better define residential uses in the C-M Zone to both encourage priority housing and to protect existing manufacturing and industrial uses.

LG15. Sustainable Neighborhood Planning. Neighborhoods shall be encouraged to preserve and enhance the sense of place, provide opportunities for healthy living and accessibility, while reducing the community’s carbon footprint. 2023-2031 Housing Element
Goals
Create New Housing: Create new healthy, safe, and energy-efficient housing that meets community needs, within our resources.

ATTACHMENT 2
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
4 Promote Housing Stability: Implement tenant protection measures, promote full time occupancy of existing housing, and discourage conversion of housing to other uses.

Policies
Policy 1.1 Sustainable and Livable Neighborhoods. Ensure that new housing programs, housing developments, and related infrastructure improvements include community-led strategies that encourage community revitalization in areas of lower opportunity to meet the needs of lower-income residents and are consistent with the City’s sustainability initiatives for energy efficiency and active transportation goals.

Policy 1.2: Infill Housing. Encourage development of housing on infill sites near transit and jobs, particularly redevelopment of sites suitable for housing, while continuing to limit residential density in High Fire Hazard Areas.

Policy 1.3 Adaptive Reuse. Provide incentives and promote flexibility for adaptive reuse projects that convert existing structures to multi-unit housing in order to reduce construction waste and extend the life of existing buildings.

Policy 1.4 Reduce Constraints. Reduce and, where feasible and practical, remove unnecessary City-imposed constraints that impede housing development.

Policy 1.7 Prioritize Housing and Community Benefit. Prioritize residential development and nonresidential priority projects with broad community benefit on sites zoned for both residential and other uses.

Policy 1.8 Flexible Standards. Increase flexibility in multi-unit housing densities and other standards to allow a variety of unit sizes and affordability levels.

Programs
HE-1: Facilitate Conversion of Nonresidential Buildings to Housing The City has older commercial, office, and industrial buildings and larger single-unit residential buildings that are appropriate for conversion (i.e., adaptive reuse) to multi-unit or mixed-use residential. There are also historic buildings that could be converted to residential use or expanded to accommodate multiple residential units consistent with the Secretary of Interior’s Standards for Rehabilitation. The City will draft an Adaptive Reuse Ordinance for adoption, proposed to initially apply to existing buildings within the Central Business District (CBD), where there is sufficient transit and services, and existing buildings designated as a historic resource, where residential use is allowed.

The City shall prepare outreach materials, and online forms and applications to encourage adaptive reuse to property owners and interested developers.

ATTACHMENT 2
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
5 Funding Source: General Fund (staff)
Responsibility: Planning Division
Time Frame: Start Date Q2 2024. End Date Q4 2025.

Corresponding Goal/Policy: Goal 1; Policies 1.1, 1.2, 1.3, 1.4, 1.7, and 1.8 Economic and Fiscal Health Element
Goals
Interconnected Regional Economy: Recognize that commerce is intertwined with transportation, natural resources and housing, and together are key elements of a healthy economy that is regional in scope.

Minimize Impacts and Costs: Internalize impacts to the environment of new development and redevelopment, and avoid costs to the community.

Policies
EF12. Re-Use of Commercial Space. Provide incentives for adaptive re-use of vacant commercial buildings.

EF15. Protect Industrial Zoned Areas. Preserve the industrial zones as a resource for the service trades, product development companies, and other industrial businesses not precluding priority housing in the C-M, Commercial Manufacturing Zone.

Historic Resources Element
Goals
Protection and Enhancement of Historical Resources: Continue to identify, designate, protect, preserve and enhance the City’s historical, architectural, and archaeological resources. Ensure Santa Barbara’s “sense of place” by preserving and protecting evidence of its historical past, which includes but is not limited to historic buildings, structures, and cultural landscapes such as sites, features, streetscapes, neighborhoods, and landscapes.

Policies
HR3. Discourage Demolition. Develop effective measures to discourage and curtail the demolition of historic resources.

HR4. Adaptive Reuse. Encourage the adaption of historic buildings or structures for uses other than the original intended use when the original use is no longer viable. o HR4.1 Provide Incentives
ATTACHMENT 2
Municipal Code Amendments to Incentivize Adaptive Reuse Projects [Ordinance Introduction]
October 14, 2025
6 Provide incentives for the adaptive reuse of historic buildings. Support zoning modification approvals for parking and setbacks to allow more change of uses for historic properties and allow more flexible building code compliance alternatives. For example, employ the California State Historic Building Code to allow more flexibility in code compliance.

Circulation Element
Policies

7.7 Bicycle Parking and Other Needs. Require all multi-family and commercial projects to be designed to meet the needs of bicyclists (e.g., secure parking, storage, lockers, showers, etc.)

8.5 Downtown Housing. The City shall promote/facilitate the development of housing to decrease the need for parking through an increased walking/biking population that lives, works, and shops Downtown (See Chapter 13).

13.2 Compact Development. Without increasing the City wide development potential as provided for in the existing Zoning Ordinance and General Plan, the City shall allow more compact, pedestrian oriented development along major transit corridors (see Traffic Standards Chapter, Implementation Strategy 11.1.1).
o 13.2.2 Consider amending the Zoning Ordinance to:
 Allow increased residential densities and more compact, pedestrian oriented, non-residential along streets identified as major transit corridors, and
 Reduce parking requirements for properties near major transit corridors if it can be demonstrated that a negative impact will not occur. In conjunction with this reduction, the City shall evaluate and aggressively monitor the results to ensure continued use of alternative means of travel and to justify reduced parking demands.

COUNCIL INTRODUCTION DRAFT
SHOWING CHANGES FROM CURRENT CODE 10/14/25
1 ORDINANCE NO.____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING THE SANTA BARBARA
MUNICIPAL CODE BY ADDING SECTION 30.185.045

PERTAINING TO REGULATIONS FOR ADAPTIVE REUSE

PROJECTS

THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

SECTION 1. Chapter 30.185 of Title 30 of the Santa Barbara Municipal Code is amended by adding Section 30.185.045 which reads as follows:

30.185.045 Adaptive Reuse Projects.

Adaptive reuse projects shall be located, developed, and operated in compliance with the following standards:

A. Purpose. The purpose of this section is to encourage and facilitate the conversion of existing nonresidential buildings throughout the City into new residential uses, to revitalize the downtown, maintain historic structures, and reduce construction waste.

B. Definitions. The following words or phrases as used in this Section shall have the following meanings:

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2 1. Adaptive Reuse Project. A change of use of all or any portion of an existing building envelope from nonresidential use to one or more new residential units.

2. Existing Building Envelope. The building volume within the fully enclosed exterior walls, foundations, roof, windows, and doors of a building that existed with a final inspection/certificate of occupancy issued at least 5 years prior to the date of application submittal for an adaptive reuse project.

C. Where Allowed. Adaptive reuse projects are allowed in all zones that allow multi-unit residential use, subject to the development standards in this section.

D. Conversion Types. Adaptive reuse projects may only convert:

1. Nonresidential land uses to a residential use.

2. Nonresidential land uses to either mixed use or live-work, consistent with the land uses allowed by the zone.

3. The following uses are prohibited in an adaptive reuse project:
a. New Hotel or Similar Use
b. New or Conversion of Industrial Uses

4. Notwithstanding any of the foregoing, any existing floor area may convert to an adaptive reuse project if allowed by State law; however, adaptive reuse

COUNCIL INTRODUCTION DRAFT
SHOWING CHANGES FROM CURRENT CODE 10/14/25
3 projects utilizing State regulations are not eligible for the incentives in this section unless they meet all the requirements of this section.

E. Existing Buildings. An adaptive reuse project shall be located within the existing building envelope, with no additions proposed outside the building volume, except as follows:

1. Maximum 600 square feet or 10% of the existing building floor area, whichever is greater, of additional floor area is allowed outside the existing building envelope to provide residential amenities that serve all units on-site (such as a laundry room, bicycle storage room, or recreation room).

2. Additions necessary for egress, circulation, accessibility, or other improvements to comply with the Building Code, are allowed outside the existing building envelope, up to the minimum size required by the Building Code.

3. Residential additions may be constructed within the existing building envelope, such as mezzanines and lofts.

F. Demolition. An adaptive reuse project shall not demolish or substantially redevelop the existing building as defined in Section 30.140.200, Substantial Redevelopment.

G. Average Unit Size. All the residential units in an adaptive reuse project must meet the standards in Section 30.140.150, Residential Unit, and shall not exceed the following average unit size:

COUNCIL INTRODUCTION DRAFT
SHOWING CHANGES FROM CURRENT CODE 10/14/25
4 1. Rental Units: 1,200 square feet

2. Ownership Units: 2,000 square feet
Exception: The Community Development Director may approve larger unit sizes with a determination that the unit sizes are necessary to accommodate the existing building size or shape; the location of building elements such as vertical circulation, exterior windows, access doors; or to facilitate the legalization of preexisting unauthorized residential units.

H. Required Ground Floor Nonresidential Space on State Street. For adaptive reuse projects located on State Street, from Montecito Street to Sola Street, nonresidential uses (excluding parking, storage or other non-occupiable space) are required on the ground floor for the full width of the ground floor fronting onto State Street.

The required nonresidential space must be a minimum of 35 feet deep, measured perpendicular to the façade of the building, and may include common residential entries or lobbies but no portion of a residential unit.

I. Development Incentives. Adaptive reuse projects are entitled to the following incentives:

1. Density. The addition of residential units shall not be counted toward the maximum residential density limits applicable for the lot.

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SHOWING CHANGES FROM CURRENT CODE 10/14/25
5 2. Open Yard. Any minimum open yard areas required for residential uses shall not apply.

3. Setbacks. Existing building setbacks shall remain, and any setback requirements related to the conversion of existing buildings to residential use shall not apply. Additions to the existing building envelope to accommodate new floor area as specified in Subsection E, may continue nonconforming setbacks.

4. Parking. An adaptive reuse project is not required to provide additional automobile parking spaces, if all the following conditions are met:
a. Bicycle parking in accordance with Chapter 30.175, Parking Regulations, is provided.
b. Parking spaces shall be maintained, or may be reduced or increased, in accordance with the requirements of Chapter 30.175, Parking Regulations; except that when calculating the minimum number of parking spaces for residential units, the required number shall not exceed one space per unit. c. Any requirement to provide electric vehicle supply equipment or parking spaces that are accessible to persons with disabilities is met.

J. Review Process.

1. Building Permits. Adaptive reuse projects must comply with applicable state and local building codes and require approval of a building permit.

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SHOWING CHANGES FROM CURRENT CODE 10/14/25
6 Alternative building standards shall be considered pursuant to the California Existing Building Code and the California Historic Building Code, as applicable.

2. Discretionary Review. Adaptive reuse projects shall be exempt from all City discretionary review with the following exceptions:
a. If the project is in the coastal zone, an application for a Coastal Development Permit shall be submitted as required by Chapter 30.210, Coastal Permits. b. If the project includes a subdivision, an application shall be submitted as required by Title 27, Subdivisions. The incentives identified in Subsection

30.185.045.I, Development Incentives, shall apply to condominium development, notwithstanding Section 27.13.060, Physical Standards for Condominiums. c. If the project includes allowed additions, or exterior alterations, it will be processed according to the discretionary review procedures (e.g., design review, development plan) applicable to multi-unit residential or mixed-use development in the same zone except as follows:
(1) Adaptive reuse projects are exempt from any
mandatory pre-application or concept review.
(2) Minor design alterations, as specified in the applicable Design Guidelines, may be approved as a ministerial action by the Community Development Director without review by the Design Review body.

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7 3. Inclusionary Housing. An adaptive reuse project shall include inclusionary housing consistent with either Chapter 30.160, Inclusionary Housing, or Section 30.150.110, Inclusionary Requirements for Rental Housing Projects, except:
a. Adaptive reuse projects located within the Central Business District, as delineated in Figure 30.175.050.B., with fewer than 40 rental units are exempt from the inclusionary housing requirements in Section 30.150.110, Inclusionary Requirements for Rental Housing Projects.

Existing residential units retained on-site shall be counted towards the total unit quantity in the adaptive reuse project when calculating inclusionary housing requirements.

4. Historic Resources. Adaptive reuse projects for Designated Historic Resources must comply with Chapter 30.157, Historic Resources.

5. Contaminated Fill. If an adaptive reuse project is proposed in the “Area of Potential Contaminated Fill,” as identified on a map on file with the Community Development Department – Planning Division, and there is ground disturbance or foundation repair proposed as part of the project, it shall not be approved unless the applicable agency makes a determination pursuant to subdivision (c) of Section 25296.10 of the Health and Safety Code, that the site is suitable for residential use.

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8 SECTION 2. Severability. If any provision of this Ordinance or the application thereof to any persons or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable.

SECTION 3. California Environmental Quality Act. This action is exempt from further environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) [General Rule]. The proposed adaptive reuse ordinance establishes a regulatory framework that facilitates the conversion of existing structures to residential or mixed-use development and does not directly approve or authorize any specific construction nor does it grant entitlements or directly result in any physical changes to the environment.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Request from Councilmembers Santamaria and Sneddon to Agendize Consideration of an Ordinance Adding Chapter 26.90 to Title 26 of the Santa Barbara Municipal Code Related to Rent Stabilization and Development of a Work Plan to Fund and Administer a Rent Stabilization Program
RECOMMENDATION:

That Council consider the request from Councilmembers Santamaria and Sneddon to consider an Ordinance Adding Chapter 26.90 to Title 26 of the Santa Barbara Municipal Code Related to Rent Stabilization and Development of a Work Plan to Fund and Administer a Rent Stabilization Program and determine whether to place the item on a future agenda for full discussion.

DISCUSSION:

Attached is a two-person memorandum from Councilmembers Santamaria and Sneddon requesting consideration of an Ordinance Adding Chapter 26.90 to Title 26 of the Santa Barbara Municipal Code Related to Rent Stabilization and Development of a Work Plan to Fund and Administer a Rent Stabilization Program.

In the Fall of 2024, Council provided direction to staff to research and explore rent stabilization options as a follow up to the recommendations of the Council Ad Hoc Committee on the Housing Crisis. At the time, due to staffing constraints and other priorities, staff indicated that work on this item would begin in earnest following the hiring of the Deputy City Administrator position and reorganization of housing functions which recently occurred with adoption of the FY 2026 budget. As an alternative to scheduling this two-person memo for further discussion, staff recommends that the Council direct staff to proceed with this previously planned work on rent stabilization – the first step of which will be to hire a consultant to assist with technical research and analysis of a variety of rent stabilization options and programs, including review and analysis of the ordinance proposed by Councilmembers Santamaria and Sneddon. The City Attorney’s office will Agenda Item No. 16
File Code No. 660.06
Council Agenda Report
Request from Councilmembers Santamaria and Sneddon to Agendize Consideration of an Ordinance Adding Chapter 26.90 to Title 26 of the Santa Barbara Municipal Code Related to Rent Stabilization and Development of a Work Plan to Fund and Administer a Rent Stabilization Program
October 14, 2025

be a key partner in this work and research. Staff would return to Council before the end of the year with an outline for a comprehensive work plan that includes community and stakeholder outreach and engagement.

ATTACHMENTS: Memorandum from Councilmembers Santamaria and Sneddon

PREPARED AND
SUBMITTED BY: Nicole Grisanti, Administrator’s Office Manager APPROVED BY: Kelly McAdoo, City Administrator
City of Santa Barbara
Mayor and Council Office
Memorandum
DATE: September 29, 2025
TO: Kelly R. McAdoo, City Administrator
FROM: Councilmember Wendy Santamaria and Councilmember Kristen Sneddon SUBJECT: Request to Consider:

AN ORDINANCE ADDING CHAPTER 26.90 TO TITLE 26 OF THE SANTA

BARBARA MUNICIPAL CODE RELATED TO RENT STABILIZATION
and
Development of a work plan to fund and administer a Rent Stabilization Program
Pursuant to Council Resolution No. 22-013 regarding the Conduct of City Council Meetings, we request that an item be placed on the Santa Barbara City Council Agenda regarding amendments to Santa Barbara Municipal Code Chapter 26.50 of Title 26.

Summary
Santa Barbara faces an ongoing housing affordability crisis that makes rent stabilization a critical need. Rents are among the highest in California, while wages in key sectors such as education, hospitality, healthcare, and service work have not kept pace. As a result, 51% (11,200 renter households) pay more than 30% of their income on housing and 24% (5,100 renter households) pay more than 50% of their income on housing (SBCAG, 2025, Data Dashboard). Without protections, long-term tenants who have built their lives and families here can be forced out by rent hikes, destabilizing neighborhoods and weakening the community fabric.

Rent stabilization provides predictability for both landlords and tenants by allowing steady, reasonable rent increases while preventing unaffordable spikes that can displace residents. This stability supports essential workers - teachers, nurses, firefighters, police officers, service staff - who often cannot afford to live where they work. Without affordable options, many must commute from Ventura, Lompoc, or Santa Maria, which increases traffic congestion, greenhouse gas emissions, and reduces quality of life for workers and residents alike. In times of natural disaster, whether wildfires, flooding, or debris flows, Santa Barbara is often cut off from the north and south by freeway closures. If our essential workers are forced to live outside the area, they may not be able to reach us when we need them most. Ensuring essential workers can live in Santa Barbara is not just about affordability, it is also about public safety and community resilience.

In addition to affordability and public well-being, rent stabilization helps preserve the diversity and cultural vibrancy that make Santa Barbara unique. If rents continue to escalate unchecked, the city risks becoming accessible only to the wealthy, erasing the socioeconomic and cultural diversity that defines its character. Seniors and younger renters are particularly vulnerable.

Attachment
Moreover, when residents aren’t overburdened by housing costs, they can invest more in the local economy, supporting small businesses and strengthening community resilience.

Ultimately, rent stabilization is not just about controlling costs, it is about protecting Santa Barbara’s identity, maintaining equity, and ensuring sustainable growth. By keeping people housed, reducing long commutes, and safeguarding the community’s social and economic health and resilience, rent stabilization offers a fair and balanced way to preserve the city’s livability for generations to come.

Statement of the Reasons Why it is Appropriate and Within the Jurisdiction of the Council to Consider this Subject Matter and to Take the Recommended Action:

1. Advancement towards Goal (4) of the City’s Housing Element: Promote Housing Stability through tenant protection measures, full-time housing occupancy, and discouraging housing conversion.

2. Immediate need to stabilize Santa Barbara's rental market as prioritized from the results of the Affordable Housing Crisis Council Ad Hoc Committee recommendations and as evidenced by the City of Santa Barbara 2025 Rent Survey for the South Coast Final Report.

3. Accountability to Santa Barbara residents. This measure is crucial to help local families and essential workers stay in Santa Barbara and reduce the rate of rent increases.

Statement of Specific Action:

Schedule items on Santa Barbara City Council Agenda at soonest possible meeting:

1. Agenda item to send the following Ordinance adding Chapter 26.90 to Title 26 of the Santa Barbara Municipal Code related to Rent Stabilization to the Office of the City Attorney for legal review and recommendation of amendments or rewriting for consideration back to the Santa Barbara City Council for amendment and adoption AND, as a separate action,

2. Agenda item to direct the Office of the City Administrator and Finance Committee to develop a work plan for the administration, funding, and enforcement of a Rent Stabilization Program.

ORDINANCE NO. _____
AN ORDINANCE ADDING CHAPTER 26.90 TO TITLE 26 OF THE SANTA

BARBARA MUNICIPAL CODE RELATED TO RENT STABILIZATION

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANTA BARBARA as follows:

SECTION 1. TITLE, PURPOSE & FINDINGS

26.90.010 Title and purpose.

This Chapter shall be known as the Santa Barbara Rent Stabilization Ordinance. The purpose of this Chapter is to promote neighborhood and community stability, healthy housing, and affordability for renters in the City of Santa Barbara by controlling excessive rent increases to the greatest extent allowable under California law, while ensuring landlords a fair and reasonable return on their investment.

26.90.020 Findings.

A. There is a shortage of decent, safe, affordable, and sanitary housing in the City of Santa Barbara.

B. The prolonged affordable housing crisis in the City of Santa Barbara disproportionately impacts low income and working class households, senior citizens, people of color, immigrants, and people with disabilities, and increases homelessness and crime and harms neighborhood stability and cohesion.

C. Residential tenants, who constitute approximately 60% of households in Santa Barbara, suffer great and serious hardship when forced to move from their homes.

D. According to HUD Comprehensive Affordable Housing Strategy (CHAS) data, at least 10,954 renter households in Santa Barbara, representing 50.1% of renters, are rent-burdened, which means that they pay more than 30% of their income on rent.

Without rent stabilization, a tenant who moved into a unit they could afford can very quickly find themselves rent burdened.

E. According to the same data source, 77.2% of low-income renters in Santa Barbara are rent burdened. Given that approximately 14% of the City’s rental housing stock is publicly subsidized, the data indicates that rent burdens nearly all unsubsidized low-income tenants in the city.

F. Given the increased housing cost burden and poverty faced by many Santa Barbara residents, excessive rent increases threaten the public health, safety, and welfare of Santa Barbara residents, including seniors, people with disabilities, those on fixed incomes, those with very low, low, and moderate income levels, and those with other special needs. Such persons are often forced to choose between paying rent and providing food, clothing, and medical care for themselves and their families.

G. The problem of rent increases in Santa Barbara has reached a crisis level, with rents consistently rising at rates higher than inflation and average wage growth.

H. Evictions can lead to homelessness. Unsheltered homelessness – the number of people living on the street, in tents or in vehicles – is increasing in the City of Santa Barbara and throughout the region. Point in Time Counts in the City of Santa Barbara showed a 103% increase in unsheltered homeless people between 2022 and 2025.

SECTION 2. Chapter 26.90 is hereby added to Title 26 of the Santa Barbara Municipal Code to read as follows:

26.90.030 Applicability and exemptions.

A. Applicability of this Chapter. This Chapter applies to all residential Rental Units except for those units that are exempted.

B. Exemptions from this Chapter. The following Rental Units are exempt from all provisions of this Chapter:

1. Rental Units exempt pursuant to the Costa-Hawkins Rental Housing Act (California Civil Code sections 1954.50—1954.535) are exempt from this Chapter. If the Costa-Hawkins Rental Housing Act is repealed or amended, by operation of law, newly constructed Rental Units shall be exempt per this Section

26.50.040(A) only for the first 10 years after the completion of their construction.

Otherwise, any Rental Unit previously exempt pursuant to the Costa-Hawkins rental act shall become a Controlled Rental Unit.

2. Rental Units owned, operated, and managed by a City of Santa Barbara government unit, agency or authority. This exemption applies only if applicable federal or state law or administrative regulation specifically exempt such units, or if Rental Units which are deed restricted as affordable housing by a regulatory agreement or similar recorded document.

3. Rental Units in hotels, motels, and inns which are rented primarily to transient guests for a period of fewer than thirty (30) days. This exemption does not apply:
i. to a Tenant who has lived at the Property for more than thirty continuous days;
ii. to a Tenant who has entered into an agreement to lease a Rental Unit for 30 days or more; or
iii. where a Landlord has violated California Civil Code 1940.1 with regard to the Tenant.

4. Rental Units in any hospital, convent, monastery, extended medical care facility, non-profit home for the aged, or dormitory as defined in California Building Code section 202 that is solely owned and operated by an accredited institution of higher education.

5. A Rental Unit that has been the Primary Residence of the Landlord since the beginning of the tenancy, and where the Landlord shares a bathroom or kitchen with the Tenant. A Landlord, as used in Subsection 26.90.030(B)(5), means a natural person who has at least a fifty-one (51) percent recorded ownership interest in the Property.

26.90.040 Definitions.

The following words or phrases as used in this Chapter shall have the following meanings:

A. “Annual Allowable Rent Increase” means the percent by which a landlord may increase the Rent for any Controlled Rental Unit each year without an order from a hearing officer.

B. “City” means the City of Santa Barbara.

C. “Controlled Rental Units” means all Rental Units in the City of Santa Barbara except those units exempt as defined in Subsection 26.90.030(B).

D. “Council” means the Santa Barbara City Council.

E. “Disabled” or “Disability” shall have the definition as given in California Government Code section 12955.3.

F. “Housing Services” means amenities provided by the Landlord in connection with a tenancy. Housing Services include, but are not limited to, repairs, maintenance, painting, light, hot and cold water, electricity service, heating service, sewer service, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, access to exterior doors, entry systems, and gates, refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants or Tenants, the right to have pets, Utility infrastructure, and any other benefit, privilege or facility connected with the use or occupancy of any Rental Unit. Housing Services for a Rental Unit include a proportionate part of services provided to common facilities of the building where the Rental Unit is located. “Landlord” means an owner, lessor, sublessor or any other person entitled to receive Rent for the use and occupancy of any Rental Unit, or an agent, representative or successor of any of the foregoing. If an owner of a rental unit is other than a single natural person, then all entities and persons that share ownership and/or control (direct or indirect) of the units under this Rent Stabilization Ordinance shall be considered one and the same landlord.

G. “Maximum Allowable Rent” the maximum Rent which a Landlord may legally charge for any Controlled Rental Unit covered by this Chapter.

H. “Primary Residence” means a housing unit that is an individual’s usual place of return.

Occupancy of a Primary Residence does not require an individual to be physically present in the unit at all times or continuously.

1. Factors that indicate Primary Residence include:
a. The individual carries on basic living activities at the residence for extended periods;
b. The residence is listed with other public agencies, including federal, state and local taxing authorities as the individual’s Primary Residence; c. Utilities are billed to and paid by the individual at the residence; d. A homeowner’s tax exemption for the individual has not been filed for a different property;
e. The individual is not registered to vote at any other location; f. All or most of the individual’s personal possessions have been moved into the residence;
g. The residence is the place the individual normally returns to as their home, exclusive of military service, hospitalization, vacation, family emergency, travel necessitated by employment or education, incarceration, or other reasonable temporary periods of absence; h. Other relevant factors illustrating Primary Residence.

2. In order for a housing unit to qualify as a Primary Residence by a Landlord, ownership must be held by the natural person claiming Primary Residence and cannot be held by a limited liability corporation, limited partnership, or other corporate structure. A housing unit owned by a living trust may qualify as a Primary Residence if the trust beneficiary meets the above criteria, so long as the Landlord provides documentation to the Program of the name and address of all trust beneficiaries.

I. “Property” means all Rental Units on a parcel or lot, including any associated common areas.

J. “Rent” means all periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Housing Agreement, as defined in this section, concerning the use or occupancy of a Rental Unit and premises, including all payment and consideration demanded or paid for parking, utilities, pets, furniture, subletting, and security deposits for damages and cleaning.

K. “Program Administrator” means a person designated by the Council to administer the Program.

L. “Rental Housing Stabilization Board” or “Board” means the body that the Council shall establish to oversee and enforce this Chapter.

M. “Rental Agreement” an agreement, oral, written or implied, between a Landlord and Tenant for use or occupancy of a Rental Unit and for Housing Services.

N. “Rental Unit” means any unit in any real property, rented or offered for rent for residential purposes, regardless of zoning or permitting status, together with all Housing Services connected with use or occupancy of the real property such as common areas and recreational facilities held out for use by a Tenant. A room or rooms rented separately from other rooms at the same real property shall constitute a single Rental Unit, even if Tenants share other common spaces or amenities.

O. “Tenant” means a tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Agreement to use or occupy a Rental Unit.

P. “Tenant Household” means all persons living together in one Rental Unit under one Rental Agreement.

Q. “Utility” means the provision of gas, heat, electricity, water, hot water, sewer, refuse removal, telephone, cable or internet.

26.90.050 Rent stabilization for controlled rental units.

A. No Landlord shall charge Rent or increase Rent for a Controlled Rental Unit to an amount greater than the Base Rent, as specified in Subsection 26.90.060(D) plus any lawful Rent increases allowed under this Chapter.

B. A Landlord may set the initial Rent for a new tenancy to the extent permitted by state law. After that, a Landlord may only increase the Rent as allowed by this Chapter.

C. Annual Allowable Rent Increase.

1. A Landlord may increase the Rent each year by an amount equal to the Annual Allowable Rent Increase.

2. The Annual Allowable Rent Increase shall be equal to sixty percent (60%) of the percentage increase in the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations, or any successor designation of that index that may later be adopted by the Department of Industrial Relations for the 12-month period ending as of April of the current year.

3. The new Annual Allowable Rent Increase will take effect each year on September 1.

4. The Program shall publicize the Annual Allowable Rent Increase amount each year by no later than August 1.

5. No unused portion of an Annual Allowable Rent Increase may be banked, carried over, or combined with future increases.

D. Calculation of Base Rent.

1. Initial rollback. Beginning the effective date of this Chapter, no Landlord shall charge more Rent for any Controlled Rental Unit than the Rent amount in effect on [ROLLBACK DATE] except for increases expressly allowed under this Chapter. For a tenancy that began before [ROLLBACK DATE], the Rent in effect on that date shall be the Base Rent.

2. For tenancies beginning after [ROLLBACK DATE], the Base Rent is the initial rental rate in effect on the date the tenancy begins. As used in this Subsection

26.90.060(D)(2), the term “initial rental rate” means only the amount of Rent actually paid by the Tenant for the initial term of the tenancy.

E. Utilities. A Landlord may not charge a Tenant for Utilities in addition to Rent. Utilities may only be paid by a Tenant when the Utility service is separately or individually metered and the Utility account is registered to the Tenant and not the Landlord. Any attempt by a Landlord to allocate or divide utility charges to Tenants, including but not limited to use of a ratio utility billing systems (RUBS), submetering, or other methods of passing utility costs to Tenants, shall constitute an unlawful rent increase under this Chapter. Such charges are expressly prohibited regardless of whether they are authorized by the Rental Agreement or any written lease provision.

26.90.150 Rental Housing Stabilization.

A. Rental Housing Stabilization Program. There shall be in the City of Santa Barbara a Rental Housing Stabilization Program. Council shall provide direction reconfiguring the Rental Housing Mediation Board as ordained in this subpart.

B. Eligibility. Duly qualified residents of the City of Santa Barbara are eligible to serve as Members of the Board. There shall be five members and no more than two members that own or manage any rental property or are realtors. Anyone nominated to this Board must be in compliance with this Chapter and all other local, state and federal laws regulating the provision of housing.

C. Full Disclosure of Holdings. Applicants for the position of Board member shall submit a verified statement listing all of their interests and dealings in real property, including but not limited to its ownership, sale or management, during the previous three (3) years.

The Board may promulgate additional regulations.

D. Term of Office. Board members shall serve terms of two (2) years and may be reappointed for a total of four (4) full terms for a total of fewer than ten (10) years.

E. Appointment. A Board member is deemed appointed after confirmation by the City Council and upon taking the oath of office.

F. Volunteer. Board members serve without compensation.

G. Powers and Duties. The Rental Housing Board shall have the following powers, duties, and responsibilities:

1. Establish a Base Rent under Subsection 26.90.060(A).

2. Make Rent increases and decreases in accordance with Section 26.90.160.

3. Issue orders, rules and regulations and conduct hearings as set forth below.

4. Make such studies, surveys and investigations, conduct such hearings, and obtain such information as is necessary to carry out its powers and duties.

5. Report annually to the Council on the status of rental housing covered by this Chapter.

6. Administer oaths and affirmations and subpoena witnesses.

7. Seek injunctive and other civil relief under this Chapter.

8. Collect and/or receive copies of notices of termination of tenancy, unlawful detainer complaints, Rent increase, and changes in terms of tenancy.

9. Any other duties necessary to administer and enforce this Chapter.

H. Rules and Regulations. The Board shall issue such rules and regulations as will further the purposes of the Chapter. The Board shall publicize its rules and regulations prior to promulgation on its website and any other appropriate medium. All rules and regulations, internal staff memoranda, and written correspondence explaining the decisions, orders, and policies of the Board shall be kept in the Program Administrator’s office and made available online to the public for inspection, download and copying or any other future appropriate technology.

I. Community Education.

1. The Program Administrator shall publicize this Chapter so that all residents of Santa Barbara will have the opportunity to become informed about their legal rights and duties under this Chapter. The Program Administrator shall prepare a brochure which fully describes the legal rights and duties of Landlords and Tenants under this Chapter in both English and Spanish. The brochure will be available to the public and each Tenant of a Rental Unit shall receive a copy of the brochure from their Landlord. Landlords shall provide the brochure at the commencement of the tenancy and with each notice of Rent increase, and to all sitting Tenants when the brochure is first made available by the Program Administrator. This brochure will be made available for download from the City website and/or other appropriate technology. Information about the Chapter shall be made available in all other languages that are requested by the community and approved by the Program Administrator or Board.

2. The Program Administrator shall produce materials in English and Spanish describing a Tenant’s rights under the Ordinance for posting in common areas. If Rental Units subject to this Chapter are located on a Property with an interior common area that all Tenants have access to, the Landlord must post the materials as provided and specified by the Program in at least one such common area on the Property.

J. Personnel. The Council shall review and assess yearly that a sufficient number of staff are employed by the Program, such as a Program Administrator, hearing examiners, housing counselors and legal services, as may be necessary to perform the functions of the Board efficiently in order to fulfill the purpose of this Chapter.

26.90.160 Rent stabilization petition and hearing process.

A. Petitions to Raise or Decrease Rents. A Landlord or a Tenant may file a petition with the Program Administrator to increase or decrease the Maximum Allowable Rent of a Rental Unit for a reason outlined in this Chapter.

1. Petition Procedures. The petition shall be filed on the form provided by the Program Administrator. A petition filed by a Landlord shall include a declaration by the Landlord that the Rental Unit meets all requirements of this Chapter. The Program Administrator may refuse to hold a hearing and/or grant a Rent adjustment if an individual hearing has been held and decision made regarding Maximum Allowable Rent for the Rental Unit within the previous twelve (12) months.

2. Procedures for Rent Adjustment. After a petition is filed, a hearing examiner may adjust the Maximum Allowable Rent of an individual Controlled Rental Unit upward or downward per the requirements of this Chapter. In making adjustments, the hearing examiner shall consider the purposes of this Chapter and the requirements of law, including state law.

B. Downward Adjustments.

1. In making an individual downward adjustment, the Program Administrator may consider prior or current unlawful increases, decreases in Housing Services; substantial deterioration of the Controlled Rental Unit other than as a result of ordinary wear and tear; or failure on the part of the Landlord to provide adequate Housing Services or to comply substantially with applicable housing, health and safety codes.

C. Upward Adjustments - Right of Reasonable Return for Landlords.

1. Landlords have the right to a reasonable return on their investment. A hearing examiner shall make an upward adjustment of the Maximum Allowable Rent if a Landlord demonstrates that the such adjustments are necessary to provide a reasonable return. The Board may create regulations to govern petitions filed under this Subsection 26.90.160(C) in accordance with this Chapter and the law.

2. Factors to be considered. In making such upward adjustments of the Maximum Allowable Rent, the hearing examiner shall consider the purposes of this Chapter and shall specifically consider all relevant factors, including (but not limited to):
a. Increases or decreases in property taxes;
b. Unavoidable increases or any decreases in maintenance and operating expenses;
c. The cost of planned or completed capital improvements to the Rental Unit (as distinguished from ordinary repair, replacement and maintenance) where such capital improvements are necessary to bring the Property into compliance or maintain compliance with applicable local code requirements affecting health and safety, and where such capital improvement costs are properly amortized over the life of the improvement;
d. Increases or decreases in the number of Tenants occupying the Rental Unit, living space, furniture, furnishings, equipment, or other Housing Services provided, or occupancy rules;
e. Substantial deterioration of the Rental Unit other than as a result of normal wear and tear;
f. Failure on the part of the Landlord to provide adequate Housing Services, or to comply substantially with applicable state rental housing laws, local housing, health and safety codes, or the Rental Agreement; g. Whether parties conferred in good faith relating to Housing Services and conditions, landlord-tenant relations, rent increases, and other issues of common interest or concern;
h. The pattern of recent Rent increases or decreases;
i. The Landlord’s rate of return on investment. In determining such return, all relevant factors, including but not limited to the following shall be considered: the Landlord’s actual cash down payment, method of financing the property, and any federal or state tax benefits accruing to the Landlord as a result of ownership of the property; and j. Whether or not the property was acquired or is held as a long-term or short-term investment.

3. Additional limits on the total increase per month and length of monthly increases shall be added by the Board through regulations.

4. The Board shall not authorize an upward adjustment of an individual Maximum Allowable Rent if the Landlord:
a. has continued to fail to comply, after order of the Board, with any provisions of this Chapter and/or orders or regulations issued thereunder by the Board, or
b. has failed to bring the Rental Unit into compliance with the implied warranty of habitability.
c. Fails to maintain the residential real property in compliance with California Civil Code section 1941.1 and California Health and Safety Code sections 17920.3 and 17920.10; or
d. Fails to make repairs ordered by the City or any court of competent jurisdiction.

5. If a Tenant reasonably believes a Landlord has increased the Tenant’s Rent in violation of this section, the Tenant may submit to the Program Administrator a petition to determine compliance for consideration by a Hearing Examiner. The Landlord shall have the opportunity to respond to the petition to determine compliance and to participate in the administrative proceeding. The Program Administrator shall promulgate regulations to effectuate this section, in addition to those authorized by the Santa Barbara Municipal Code.

D. Effective Date of Adjustment. If the Board approves an increase in the Maximum Allowable Rent, the increase shall become effective only after the Landlord gives the Tenant at least a thirty (30) day written notice of the Rent increase and the notice period expires. If the Board approves a downward adjustment of the Maximum Allowable Rent, the Rent decrease shall take effect no sooner than thirty (30) days after the date both parties are sent notice of the downward adjustment and its effective date by the Board.

E. Hearing Procedure. The Board shall enact rules and regulations for hearings and appeals which shall include the following:

1. Hearing Examiner. A hearing examiner designated by the Board shall conduct a hearing to act upon the petition for individual adjustment of Maximum Allowable Rent and shall have the power to administer oaths and affirmations.

2. Notice. Once it receives a petition, the Board shall notify the other party and provide a copy thereof.

3. Time of Hearing. The hearing examiner shall notify all parties of the time, date and place of the hearing.

4. Records. The hearing examiner may require either party to a hearing to provide it any records and papers deemed pertinent in addition to the information in registration statements for the Rental Unit. If the hearing examiner finds good cause to believe the Board’s information does not reflect the current condition of the Controlled Rental Unit, the hearing examiner shall conduct a current building inspection and/or request that the City conduct a current building inspection. The Tenant may request that the hearing examiner order such an inspection on or prior to the date of the hearing. All documents required under this Subsection

26.90.160(E)(4) shall be made available to the parties at the Board office prior to the hearing. In cases where information filed in a petition or in additional submissions filed at the request of the hearing examiner is inadequate or false, no action shall be taken on the petition until the deficiency is remedied.

5. Open Hearings. All Maximum Allowable Rent adjustment hearings shall be open to the public.

6. Right of Assistance. All parties to a hearing may have assistance in presenting evidence and developing their position from attorneys, legal workers, Tenant Association representatives or any other persons designated by the parties.

7. Hearing Record. The Board shall make an official record of the hearing, including the recording, available for inspection and copying by any person. This shall constitute the exclusive record for decision on the issues of the hearing. The record of the hearing shall include all exhibits, papers and documents required to be filed or offered or accepted into evidence during the proceedings; a list of participants present; a summary of all testimony accepted in the proceedings; a statement of all materials officially noticed; all recommended decisions, orders and/or rulings; all final decisions, orders and/or rulings, and the reasons for each final decision, order and/or ruling. All hearings shall be recorded. Any party may receive a copy of the audio recording. Reasonable costs may be charged for a recording copy. The Board shall not be responsible for transcribing the audio recording.

8. Standard of Proof and Notice of Decision. A hearing examiner shall not grant an individual adjustment unless the adjustment is supported by the preponderance of the evidence submitted at the hearing. All parties to a hearing shall be sent a notice of the decision and a copy of the findings of fact and law upon which the decision is based. The parties to the proceeding shall also be notified in the decision of their right to any appeal allowed by the Board and/or to judicial review of the decision pursuant to this Section 26.50.160.

9. Consolidation. All Landlord petitions pertaining to Tenants of the same Property shall be consolidated for hearing. All petitions filed by Tenants occupying the same Property shall be consolidated for hearing unless there is a showing of good cause not to consolidate the petitions.

10. Appeal. Any person aggrieved by the decision of the hearing examiner may appeal to the Board. On appeal, the Board shall affirm, reverse or modify the decision of the hearing examiner.

11. Finality of Decision. The decision of the hearing examiner shall be the final decision of the Board in the event that neither party appeals to the Board. The decision of the hearing examiner shall be stayed pending appeal.

12. Time for Decision. The rules and regulations adopted by the Board shall require final action on any individual Rent adjustment petition within a reasonable time.

F. Decisions decreasing Rents due to reductions in services or failure to maintain the Property shall remain in effect until the hearing officer finds that the Landlord has corrected the defect warranting the decrease. The Board shall, by regulation, establish procedures for making prompt compliance determinations. Upon a determination of compliance, the Landlord shall be entitled to reinstate the prior Rent level, retroactive to the date that the Landlord notified the Board that it had corrected the defect that warranted the decrease. This shall occur in compliance with California Civil Procedure section 1942.4. If the Landlord is found to be in violation of California Civil Procedure section 1942.4, then no Rent shall be charged for the period during which the Landlord was in violation.

Sec. 26.90.170. Notice Requirements.

A. On or before the date of commencement of a tenancy, the Landlord of any residential real property subject to this Rent Stabilization Ordinance shall deliver to the Tenant written notice of the following in a form prescribed by the City Attorney:

1. The tenancy is regulated by this Chapter;

2. The Tenant has a right to submit a complaint to the Board pursuant to section

26.90.012 or a Rent Reduction Petition pursuant to section 26.90.050 for Rent demanded, accepted, or retained in violation of this Rent Stabilization Ordinance, a reduction in Housing Services, or failure to maintain habitable premises;

3. The Landlord has a right to respond to any Rent reduction petition filed by the Tenant with the City pursuant to section 26.90.050; and

4. The Tenant has a right to respond to any Fair Return Petition filed by the Landlord with the City pursuant to section 26.90.060.

B. At the same time and with any notice to increase Rent, the Landlord must deliver written notice of the following:
a. The tenancy is regulated by this Rent Stabilization Ordinance; b. The Tenant has a right to submit a complaint to the City pursuant to the procedures established pursuant to section 26.90.012 or a Rent Reduction Petition pursuant to section 26.90.050 for Rent demanded, accepted, or retained in violation of this Rent Stabilization Ordinance, a reduction in Housing Services, or failure to maintain habitable premises;
c. The Tenant has a right to respond to any Fair Return Petition filed by the Landlord with the City pursuant to sec. 26.90.060; and
d. No rent increase is effective unless and until the requirements of this Rent Stabilization Ordinance have been met.

C. When a Landlord and Tenant have entered into a written Rental Housing Agreement, the Landlord must give notices to the Tenant in the language primarily used to negotiate the Rental Housing Agreement. When a Landlord and Tenant have not entered into a written Rental Housing Agreement, the Landlord must give notices to the Tenant in the language that a Landlord and Tenant used primarily when negotiating the terms of the Tenancy.

26.90.170 Non-waiverability.

Any provision, whether oral or written, whereby any provision of this chapter is waived, shall be deemed to be against public policy and shall be void.

26.90.180 Judicial review.

A Landlord or Tenant aggrieved by any action or decision of the Program may seek judicial review by appealing to the appropriate court within the jurisdiction. No action or decision by the Program shall go into effect until thirty (30) days have expired to allow for such appeal.

26.90.190 Remedies.

1. Any Landlord who demands, accepts, receives, or retains any payment of Rent in excess of the Maximum Allowable Rent, in violation of the provisions of this Chapter or any rule, regulation or order hereunder promulgated, including the provisions ensuring compliance with habitability standards and registration fee requirements, shall be liable in a civil action to the Tenant from whom such payments are demanded, accepted, received or retained, for reasonable attorney's fees and costs as determined by the court, plus damages in the amount by which the payment or payments demanded, accepted, received or retained exceeds the Maximum Allowable Rent. A civil penalty of treble the amount by which the payment or payments demanded, accepted, received or retained exceeds the Maximum Allowable Rent shall be awarded against the Landlord upon a showing that the Landlord has acted willfully or with oppression, fraud or malice.

No administrative remedy need be exhausted prior to filing suit pursuant to this Subsection.

2. In lieu of filing a civil action, a Tenant may file an administrative complaint. The Board shall establish by rule and regulation a hearing procedure similar to that set forth in this Chapter.
a. The rules and regulations adopted by the Board shall provide for final Board action on any complaint for excess Rent within one-hundred twenty (120) days following the date of filing of the complaint.
b. In any administrative hearing under this Section, a Landlord who demands, accepts, receives or retains any payment of Rent in excess of the Maximum Allowable Rent shall be liable for damages in the amount by which the payment or payments demanded, accepted, received or retained exceeds the Maximum Allowable Rent.
c. If the Tenant from whom such excessive payment is demanded, accepted, received or retained in violation of the foregoing provisions of this Chapter or any rule or regulation or order hereunder promulgated fails to bring a civil or administrative action as provided for in this Chapter within one hundred twenty (120) days from the date of occurrence of the violation, the Board may settle the claim arising out of the violation or bring such action. Thereafter, the Tenant on whose behalf the Board acted is barred from also bringing an action against the Landlord in regard to the same violation for which the Board has made a settlement or brought action. In the event the Board settles said claim, it shall be entitled to retain the costs it incurred in settlement thereof, and the Tenant against whom the violation has been committed shall be entitled to the remainder.

3. The appropriate court in the jurisdiction in which the Controlled Rental Unit affected is located shall have jurisdiction over all actions brought under this Section.

26.90.200 Injunctive and Other Civil Relief.

The Board, and Tenants and Landlords of Rental Units, may seek relief from the appropriate court within the jurisdiction within which the affected Rental Unit is located to enforce any provision of this Chapter or its implementing regulations. or to restrain or enjoin any violation of this Chapter and of the rules, regulations, orders and decisions of the Board.

Sec. 26.90.210. Operative Date.

The operative date of the ordinance codified in this Article shall be [OPERATIVE DATE].

SECTION 3. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this ordinance.

SECTION 4. Publication. The City Clerk shall cause the title and a summary of this ordinance to be published in the official newspaper in Santa Barbara within fifteen (15) days after adoption.

The summary shall include notice that full text shall be available at the City Clerk’s office (Santa Barbara Charter Section 512 & 517)
SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15061(b)(3) because it would not have a significant effect on the environment. Additionally, the City Council’s adoption of this ordinance is exempt because it does not meet the
definition of a “project” under CEQA, pursuant to CEQA Guidelines sections 15060(c)(1) and 15378(a), because it has no potential to result in a direct or reasonably foreseeable physical change in the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The Santa Barbara City Council hereby declares that it would have passed this ordinance and each and every section, subsection, clause, and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Effective Date. This ordinance will take effect thirty (30) days from and after its adoption.

Supporting Documentation
Attached City of Santa Barbara 2025 Rent Survey for the South Coast Final Report

CITY OF SANTA BARBARA
2025 RENT SURVEY FOR THE

SOUTH COAST
30 MAY 2025 - FINAL REPORT
Prepared for:

City of Santa Barbara
Prepared by:

Robert D. Niehaus, Inc.

CITY OF SANTA BARBARA
2025 RENT SURVEY FOR THE SOUTH COAST

FINAL REPORT
Prepared for:

City of Santa Barbara
Community Development Department
630 Garden Street
Santa Barbara, CA 93101
(805) 564-5461
Prepared by:

Robert D. Niehaus, Inc.
140 East Carrillo Street
Santa Barbara, CA 93101
(805) 962-0611
30 May 2025
CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. i Economic Consulting

TABLE OF CONTENTS

1. Introduction ................................................................................................................................1

2. Methodology...............................................................................................................................1 Overview...........................................................................................................................................................1 Geographic Area ...............................................................................................................................................1 Data Sources.....................................................................................................................................................1 Housing Criteria ................................................................................................................................................2 Duplicate Listings..............................................................................................................................................2 Key Statistics.....................................................................................................................................................2

3. Results........................................................................................................................................3

4. Affordability Analysis ..................................................................................................................8

5. Tenant Displacement Assistance Ordinance .................................................................................9 CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 1 Economic Consulting

1. INTRODUCTION
Every year the City of Santa Barbara (City) publishes data on rental housing listings across Santa Barbara County’s southern coast (South Coast), including the cities and communities of Goleta, Isla Vista, Santa Barbara, Montecito, Summerland, and Carpinteria. For the 2025 analysis, the City outsourced this work to Robert D. Niehaus, Inc. (RDN), a local economic consulting firm specializing in rental housing market analysis. If you have any questions regarding this report, please email Myndi Hegeman, Housing Programs Specialist, at [email protected] or call (805) 564-5461 ext. 4578.

2. METHODOLOGY
RDN collected monthly prices for rental units across the South Coast, in accordance with Santa Barbara Municipal Code (SBMC) Sections 28.89 and 30.190, Tenant Displacement Assistance Ordinance, and direction from the City’s Community Development Department.

Overview
RDN compiled a list of rental housing listings in the South Coast area for the month of April 2025, removing duplicates and housing described as subleases, shared (rooms), restricted (set aside for students or seniors), subsidized, short-term, and/or furnished. The sources for these data include Craigslist, Zillow, and RDN’s proprietary data feed that aggregates approximately one million rental listings nationally each week from various listing websites.

RDN classified rental listings into the four types of housing units collected in the City’s previous studies:
apartments, condominiums, duplexes/townhouses, and single-family houses. Next, RDN calculated median rents by area, housing type, and number of bedrooms (studio, one-bedroom, two-bedroom, threebedroom, and units with four or more bedrooms). The median rent and sample size for each housing type and bedroom category are included in the tables of this report.

This survey provides a snapshot of the local private rental housing market as of April 2025 and tracks changes in the market over time. This report also includes a calculation of affordability and provides information used to calculate benefits under the City’s Tenant Displacement Assistance Ordinance (TDAO).

Geographic Area
The geographic area for this survey includes the South Coast of Santa Barbara County and is broken down into the following cities and communities: Goleta, Isla Vista, Santa Barbara, Montecito, Summerland, and Carpinteria.

Data Sources
RDN searched for eligible rental listings from the following data sources:

1. April 2025 edition(s) of the Santa Barbara Independent

2. Listings posted in April (various dates) on Craigslist, Zillow, and RDN’s proprietary rental data feed, which aggregates listings from multiple other websites SBMC Sections 28.89.010 and 30.190.010 state, “…the median advertised rental rate shall be calculated annually based on the median of a representative sample of rental units advertised in a newspaper of general circulation for one Sunday during the month of April.” However, given the availability of inexpensive and free online advertising platforms, few rental units are advertised in newspapers. During CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 2 Economic Consulting
the month of April, the Santa Barbara Independent accounted for a total of zero listings. Rental listing platforms such as Zillow and the “apartments / housing for rent” section of Craigslist are the most popular sources for local rental listings. This year’s sample includes 98 rental listings from Craigslist, 132 listings from Zillow, and 207 listings sourced from other listing websites, for an overall total of 437 unique rental units. This total reflects only those listings that were advertised in April 2025 and met the City’s other survey criteria. For comparison, RDN observed 565 unique listings in April 2024 and 355 unique listings in April 2023.

Housing Criteria
The survey evaluates prices for four housing types, including apartments, condominiums (condos), duplexes/townhouses (duplex/TH), and single-family residences (houses). These categories are further classified by the number of bedrooms, including studios (no bedrooms), one-bedroom units, two-bedroom units, three-bedroom units, and units with four or more bedrooms. Any listing identified as a “cottage” is reported as a single-family house.

Listings for subleases, shared housing (e.g., a room in a house), short-term/vacation rentals, and furnished units were excluded from the sample. Other non-market rate housing was also excluded, including affordable housing (e.g., Section 8) and units that are only rented to students or seniors.

Duplicate Listings
RDN reviewed the data sample to identify and resolve duplicate listings per the City’s instructions.

Depending on the specific scenario, duplicate listings were either removed from the sample or averaged together using the following methodology:

1. Listings with the same address, housing type, and number of bedrooms that appeared multiple times during the data collection period with no change to the rent were counted as one observation (i.e., the first instance was included in the sample and all other instances were removed).

2. Listings with the same address, housing type, and number of bedrooms that appeared multiple times on different days with different rents were counted as unique observations, with one instance for each distinct listing date and rent price (i.e., the first instance was included in the sample, as well as any later instances with different listing dates and rent prices; any instances that included the same rent price as one of the previously seen instances were removed from the sample).

3. Listings that appeared the same day and had the same address, housing type, and number of bedrooms were aggregated into one observation (i.e., complexes may have several floorplans that vary in price but have the same housing type and number of bedrooms). In these instances, the observations were assigned the average rent of the grouped listings.

Key Statistics
This report presents the median rent and number of listings (sample size) by area, housing type, and number of bedrooms. For a given range of values, the median is the middle value when the sample size is odd or the average of the two middle values when the sample size is even. These key statistics are reported in the next section.

CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 3 Economic Consulting

3. RESULTS
Table 3-1 presents median rents in the South Coast region by housing type and number of bedrooms over the last decade, including the results of the 2025 survey. Note that the bottom section of the table also presents the number of listings (sample sizes) that were surveyed each year.

Table 3-1: Median Rent by Bedroom and Housing Type, South Coast Region, 2016-2025 Notes: *Data for 2019 collected in July; all other years' data collected in April. NSD=No Sample Data; TH=Townhouse. 2016 2017 2018 2019* 2020 2021 2022 2023 2024 2025

ALL HOUSING TYPES
0 BR $1,438 $1,495 $1,553 $1,520 $1,638 $1,695 $2,000 $2,100 $2,225 $2,275 1 BR $1,695 $1,750 $2,253 $1,875 $1,925 $2,000 $2,624 $2,881 $2,750 $2,890 2 BR $2,500 $2,550 $2,701 $2,695 $2,950 $2,800 $3,993 $4,400 $4,075 $3,941 3 BR $3,300 $3,700 $3,669 $3,900 $4,473 $3,993 $5,425 $5,769 $5,693 $5,995 4+ BR $4,195 $5,000 $3,590 $5,100 $6,800 $5,000 $8,000 $6,500 $7,500 $7,700

APARTMENT
0 BR $1,438 $1,495 $1,456 $1,500 $1,638 $1,695 $2,000 $2,100 $2,225 $2,275 1 BR $1,695 $1,700 $1,748 $1,863 $1,925 $1,984 $2,554 $2,750 $2,700 $2,841 2 BR $2,325 $2,450 $2,525 $2,563 $2,800 $2,748 $3,687 $3,898 $3,997 $3,850 3 BR $3,040 $3,140 $3,838 $3,425 $4,900 $3,950 $4,200 $4,795 $5,600 $5,500 4+ BR $3,138 $4,500 $3,290 $4,698 $7,650 $4,750 $6,600 $5,900 $7,000 $8,500 CONDO
0 BR NSD NSD $3,195 $2,800 NSD NSD NSD NSD NSD NSD
1 BR $2,500 $2,375 $2,250 $2,150 $2,525 $2,275 $2,950 $3,450 $3,350 $3,275 2 BR $2,700 $2,700 $2,550 $2,850 $3,000 $3,075 $4,450 $5,850 $4,550 $3,900 3 BR $2,987 $3,400 $3,500 $3,150 $3,675 $3,750 $4,850 $5,420 $4,700 $6,900 4+ BR $4,000 NSD $3,590 $3,700 $5,000 $3,800 NSD $5,950 NSD NSD

DUPLEX/TH
0 BR NSD NSD $1,411 NSD NSD NSD NSD NSD NSD NSD
1 BR NSD $2,250 $2,314 $1,850 $1,825 $2,095 $2,674 $3,000 $3,225 $2,825 2 BR NSD $2,700 $2,853 $2,823 $3,200 $2,835 $3,725 $4,500 $3,295 $3,985 3 BR NSD $3,150 $3,200 $4,099 $5,500 $3,600 $5,200 $4,990 $5,150 $4,995 4+ BR NSD NSD NSD NSD $10,000 $4,500 $11,500 $6,800 NSD NSD HOUSE
0 BR NSD NSD $1,650 $1,520 NSD NSD NSD NSD NSD NSD
1 BR $2,500 $2,450 $2,256 $1,750 $1,873 $2,025 $2,650 $3,100 $2,850 $3,320 2 BR $2,900 $3,000 $3,425 $3,200 $3,195 $2,923 $4,850 $4,995 $4,950 $4,875 3 BR $3,600 $4,000 $4,869 $3,950 $4,425 $4,250 $6,000 $6,450 $5,900 $6,500 4+ BR $4,450 $5,175 $5,375 $5,625 $6,800 $5,975 $7,725 $6,625 $8,000 $7,700

NUMBER OF LISTINGS
Apartment 493 646 457 318 172 459 159 182 414 294
Condo 38 50 73 37 25 30 13 24 20 20
Duplex/TH 0 27 62 39 18 74 61 42 19 27
House 206 216 271 117 80 101 88 107 112 96
ALL 737 939 863 511 295 664 321 355 565 437
CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 4 Economic Consulting
Table 3-2 through Table 3-5 present, for each housing type, a breakdown of the 2025 median rent and number of listings/observations (Obs), or sample size, by area and number of bedrooms.

Table 3-2: Median Rent and Sample Size, by Area and Number of Bedrooms, Apartments

APARTMENT
City
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Santa Barbara $2,350 35 $2,883 78 $3,836 78 $4,925 12 $5,998 2 Goleta $2,038 4 $2,695 21 $4,183 15 $5,500 10 $14,010 2 Isla Vista NSD 0 $2,500 9 $8,000 3 $10,625 2 $8,460 2
Carpinteria $2,200 1 $2,895 5 $3,538 6 $4,450 1 NSD 0
Montecito $2,350 2 $4,250 1 NSD 0 NSD 0 NSD 0
Summerland $1,550 1 $2,595 1 $3,300 3 NSD 0 NSD 0
South Coast Total $2,275 43 $2,841 115 $3,850 105 $5,500 25 $8,500 6 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4+ Bedroom
Note: NSD = No Sample Data.

Table 3-3: Median Rent and Sample Size, by Area and Number of Bedrooms, Condos CONDO
City
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Santa Barbara NSD 0 $3,875 4 $3,900 7 $5,900 1 NSD 0
Goleta NSD 0 $2,587 4 $3,400 1 NSD 0 NSD 0
Isla Vista NSD 0 NSD 0 NSD 0 NSD 0 NSD 0
Carpinteria NSD 0 NSD 0 $5,500 1 $6,900 1 NSD 0
Montecito NSD 0 NSD 0 NSD 0 NSD 0 NSD 0
Summerland NSD 0 NSD 0 NSD 0 $8,950 1 NSD 0
South Coast Total NSD 0 $3,275 8 $3,900 9 $6,900 3 NSD 0 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4+ Bedroom
Note: NSD = No Sample Data.

Table 3-4: Median Rent and Sample Size, by Area and Number of Bedrooms, Duplexes/Townhomes

DUPLEX/TH
City
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Santa Barbara NSD 0 $2,825 4 $3,950 11 $5,325 2 NSD 0
Goleta NSD 0 NSD 0 $4,463 2 $5,248 4 NSD 0
Isla Vista NSD 0 NSD 0 NSD 0 NSD 0 NSD 0
Carpinteria NSD 0 NSD 0 $4,060 2 $4,875 1 NSD 0
Montecito NSD 0 NSD 0 $8,748 1 NSD 0 NSD 0
Summerland NSD 0 NSD 0 NSD 0 NSD 0 NSD 0
South Coast Total NSD 0 $2,825 4 $3,985 16 $4,995 7 NSD 0 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4+ Bedroom
Note: NSD = No Sample Data.

CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 5 Economic Consulting
Table 3-5: Median Rent and Sample Size, by Area and Number of Bedrooms, Single-Family Houses
HOUSE
City
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Median
Rent Obs
Santa Barbara NSD 0 $2,998 4 $4,675 16 $6,725 34 $7,900 13 Goleta NSD 0 NSD 0 NSD 0 $5,500 3 $6,208 6
Isla Vista NSD 0 NSD 0 NSD 0 $14,000 1 NSD 0
Carpinteria NSD 0 NSD 0 $6,000 1 $5,000 7 NSD 0
Montecito NSD 0 $3,700 3 $5,100 2 $14,000 1 $13,650 2
Summerland NSD 0 $3,295 1 $8,000 1 NSD 0 $9,750 1
South Coast Total NSD 0 $3,320 8 $4,875 20 $6,500 46 $7,700 22 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4+ Bedroom
Note: NSD = No Sample Data.

Figure 3-1 through Figure 3-3 chart rental price trends in the South Coast region over the last decade for select housing types and bedroom categories. Figure 3-1 charts the median rent for studios, one-bedroom, two-bedroom, and three-bedroom apartments. Figure 3-2 charts the overall median rent by number of bedrooms for all housing types combined. Figure 3-3 charts the median rent for two-bedroom units broken out by housing type. Lastly, Figure 3-4 plots the two-bedroom median rent in 2025 across all housing types, by area.

Figure 3-1: South Coast Median Rent by Number of Bedrooms, Apartments, 2016-2025 $0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0 BR 1 BR 2 BR 3 BR
CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 6 Economic Consulting
Figure 3-2: South Coast Median Rent by Number of Bedrooms, All Housing Types, 2016-2025 $0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0 BR 1 BR 2 BR 3 BR 4+ BR
Figure 3-3: South Coast Median Rent for Two-Bedroom Units, by Housing Type, 2016-2025 $0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Houses Condos Duplexes/Townhomes Apartments
CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 7 Economic Consulting
Figure 3-4: Median Rent for Two-Bedroom Units of All Housing Types, by Area, 2025 $3,900 (112 obs) $4,079 (18 obs)
$8,000 (3 obs)
$3,898 (10 obs)
$7,200 (3 obs)
$3,775 (4 obs)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Santa Barbara Goleta Isla Vista Carpinteria Montecito Summerland Note: “obs” refers to the number of observations (rental listings) in the sample.

CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 8 Economic Consulting

4. AFFORDABILITY ANALYSIS
This affordability analysis considers the 2025 median rent prices for apartments in the City of Santa Barbara relative to tenant income. Table 4-1 displays the level of income needed for median rent to represent 30 percent of tenant income. Table 4-2 and Table 4-3 display 2025 median household incomes and 2025 minimum wage household incomes, respectively, based on household sizes of one person for studios, two people for one-bedroom apartments, three people for two-bedroom apartments, four people for three-bedroom apartments, and five people for apartments with four or more bedrooms. These tables include the percentage of median or minimum wage household income that would be required for median rent prices to represent 30 percent of tenant income.

Table 4-1: Hourly and Annual Income Needed to Afford Median Rent Apartment Size Median Rent Hourly Income Needed1
Annual Income Needed1
Studio $2,350 $45.19 $94,000
1 Bedroom $2,883 $55.43 $115,300
2 Bedroom $3,836 $73.77 $153,450
3 Bedroom $4,925 $94.71 $197,000
4+ Bedrooms $5,998 $115.34 $239,900
Table 4-2: Median Income Relative to Income Needed to Afford Median Rent Apartment Size Household Size
2025 Median
Household Income2
% of Median Household
Income Needed1
Studio 1 Person $79,310 119%
1 Bedroom 2 People $90,640 127%
2 Bedroom 3 People $101,970 150%
3 Bedroom 4 People $113,300 174%
4+ Bedrooms 5 People $122,364 196%
Table 4-3: Minimum Wage Income Relative to Income Needed to Afford Median Rent Apartment Size Household Size
2025 Minimum Wage
Household Income3
% of Minimum Wage
Household Income Needed1
Studio 1 Person $34,320 274%
1 Bedroom 2 People $68,640 168%
2 Bedroom 3 People $102,960 149%
3 Bedroom 4 People $137,280 144%
4+ Bedrooms 5 People $171,600 140%
Notes: [1] Minimum income required for household to spend at most 30% of income on rent. [2] Median Household Income by Household Size is derived from the FY2025 Median Family Income (MFI) for Santa Barbara-Santa Maria MSA published by HUD ($113,300) assuming the following adjustment factors: 70% of MFI for 1 person, 80% of MFI for two persons, 90% of MFI for three persons, 100% of MFI for four persons, and 108% of MFI for five persons. [3] Assumes current (May 2025) state minimum wage of $16.50 per hour for 2,080 hours for each person in the household.

CITY OF SANTA BARBARA — 2025 RENT SURVEY FOR THE SOUTH COAST 30 May 2025 ROBERT D. NIEHAUS, INC. 9 Economic Consulting

5. TENANT DISPLACEMENT ASSISTANCE ORDINANCE
Figure 5-1 presents the median rent by housing type and number of bedrooms in the City of Santa Barbara as derived from the rental survey. These rent prices are presented for use under the Tenant Displacement Assistance Ordinance (TDAO) of the City of Santa Barbara Municipal Code (Chapters 28.89 and 30.190).

Note that some of the median rent estimates presented below are based on small sample sizes and are thus prone to large sampling errors. Please refer to Table 3-2 through Table 3-5 for the number of available units located in the City of Santa Barbara in each housing type/bedroom category.

Figure 5-1: Median Rent in the City of Santa Barbara
for use under the Tenant Displacement Assistance Ordinance Notes: BR = Bedroom; NSD = No Sample Data.

Studio 1 BR 2 BR 3 BR 4+ BR
Apartments $2,350 $2,883 $3,836 $4,925 $5,998
Duplexes NSD $2,825 $3,950 $5,325 NSD
Condos NSD $3,875 $3,900 $5,900 NSD
Houses NSD $2,998 $4,675 $6,725 $7,900
City of Santa Barbara
Tenant Displacement Assistance Ordinance (TDAO)
Median Rents as of April 2025
By Housing Type and Unit Size

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: October 14, 2025
TO: Mayor and Councilmembers
FROM: Finance Department
SUBJECT: Reserve Policy Discussion and Direction
RECOMMENDATION: That Council:

A. Receive a report from staff regarding the City Council Reserve Policy adopted on October 10, 2023; and
B. Provide direction to staff regarding changes to the Reserve Policy.

DISCUSSION:

The establishment, adherence, and continuous monitoring of a reserve policy is a local government best practice. The City strategically leveraged reserves in recent years to be able to respond to local fires and other disasters, impacts from COVID, and other annual budget fluctuations to sustain operations and continue to provide services to the public.

The City’s reserve policy sets reserve amounts for disaster and contingency reserves as well as laying out a process for requiring a balancing strategy and plan for replenishment.

Disaster reserves are calculated on 15% of the most recently adopted expenditure budget and are restricted to use in addressing impacts of natural disasters, such as storms, floods, wildfires, and droughts, among other events. Contingency reserves are calculated on 10% of the most recently adopted expenditure budget and may be used to address fiscal impacts of unexpected events, such as an unexpected loss of funding and damage to a City facility, among other events.

Any use of disaster or contingency reserves requires an assessment of the fiscal condition and outlook, a balancing strategy to minimize the use of reserves in the future, and a plan to replenish reserves.

Finance staff has brought to Finance Committee and City Council several proposed revisions to the reserve policy in the last four years and the City Council has revised the Agenda Item No. 17
File Code No. 210.01
Council Agenda Report
Reserve Policy Discussion and Direction
October 14, 2025

policy on multiple occasions. Those recommendations and changes are summarized below:
 On December 7, 2021, the Finance Committee received a presentation from staff regarding the significant pension costs and liabilities and considerations for implementing various pension management strategies to control and reduce pension costs in the future. The Committee directed staff to research and propose a pension management policy and incorporate it into the reserve policy.  On September 27, 2022, staff proposed eliminating the requirement that 50% of any annual operating General Fund surplus go to capital and require instead that a proportional share of annual operating surpluses in the City’s General Fund, Enterprise and Internal Service funds be allocated to address pension-related expenses and future liabilities.
 On December 6, 2022, the City Council voted unanimously to approve Resolution No. 22-126 establishing one, consolidated, citywide reserve policy including staff’s proposed change of 50% of annual operating surplus be allocated to address pension-related expenses.
 On June 7, 2023, the City Council gave direction to staff to review Resolution No. 22-126 and directed staff to work with the Finance Committee during FY2024 to develop a plan to replenish reserves by FY2026. This direction, along with other efforts related to Vision 2030 and the Fiscal Sustainability Initiative, ultimately resulted in Measure I, the Maintaining Essential Services 0.50% sales tax measure, being placed on the November 5, 2024 ballot, which was ultimately approved by the voters.
 On July 25, 2023, the Finance Committee voted unanimously to forward the following recommendations to the City Council:

1. Recommend that the City Council adopt an ordinance amending the Santa Barbara Municipal Code by repealing Chapter 17.40 and transfer funds in the Harbor Preservation Fund into the Waterfront Capital Fund;

2. Consider opening a line of credit;

3. Consider reducing the disaster reserve policy target level from 15% by up to 5%, resulting in a 10% target level; and

4. Consider directing the City Administrator to prepare and issue the City’s recommended budget in FY2025 and FY2026 with a revised policy reserve target of 22% with a plan to replenish reserves to achieve the 25% target through the Fiscal Sustainability Initiative and Vision 2030.  On September 12, 2023, the City Council approved staff’s recommended changes to the reserve policy and affirmed the 15% disaster reserve policy target, maintaining the total reserve policy target at 25%.

Council Agenda Report
Reserve Policy Discussion and Direction
October 14, 2025

 On May 6, 2025, the City Council gave direction during the FY2026 and FY2027 budget hearing to schedule a Finance Committee meeting to discuss the reserve policy and consider reducing the contingency reserve target from 10% to 7%, which would result in an overall reserve policy target level of 22%, and other considerations.
 On June 10, 2025, the Finance Committee received a report from staff regarding the status of General, Enterprise and Internal Service Fund reserves. The Committee forwarded a recommendation to the City Council to agendize a future item for staff to provide an in-depth analysis of reserves, not during the budget cycle. The Committee supported the City Administrator’s recommendation for $3.0 Million in FY2026 and FY2027 for affordable housing, and made an additional recommendation to appropriate an additional $2.0 Million in FY2026 to be repaid by a combination of General Fund reserves and/or Measure C, and revisit an additional appropriation for housing during the FY2027 budget process.

BUDGET/FINANCIAL INFORMATION:

Reserves have been utilized in recent years to minimize the impact to the City’s budget from fluctuations in the economy and natural and other disasters. Through exercising strong fiscal discipline and budgetary practices, the City has been able to replenish reserves that can be utilized in future years.

If the existing reserve policy were to be amended by reducing the disaster and/or contingency reserve percent, fewer reserves will be required to adhere to the policy, which will result in fewer resources available to be used to address budget fluctuations and natural and other disasters in the future. It may also affect the City’s credit rating, which is considered when City debt is issued and could affect cost of the debt.

Staff are projecting an operating deficit of $4.6 Million in the General Fund in FY2025. An operating deficit of $1.6 Million is projected in the adopted budget in FY2026, and the deficit grows to $5.9 Million in FY2027. To balance the General Fund budget, the City will need to utilize contingency reserves, further depleting the available reserves for other purposes. To maintain and replenish reserves to adhere to the City Council reserve policy, additional revenues and expenditure control measures will need to be implemented in FY2026 and future budget years.

Since FY2026 began on July 1, 2025, the City has been negotiating with many collective bargaining units, including the Police Officers Association (POA), Fire Association (FA), Police Managers Association (PMA) and Fire Managers Association (FMA), all of which are entirely funded by the General Fund. The salary increase assumptions built into the FY2026 and FY2027 budget were 5% and 4%, respectively. The cost of all recent public safety agreements exceeds the assumptions in the FY2026 and FY2027 budget, which Council Agenda Report
Reserve Policy Discussion and Direction
October 14, 2025

will result in increased deficits. In preparation for the Q1 FY2026 report, staff will incorporate these additional costs into the FY2026 projection.

Without any additional revenue or expenditure reductions in the General Fund, the FY2026 and FY2027 deficits will be larger thus requiring additional reserves to be used to balance the budget. If no budget changes are made, all General Fund contingency reserves will be depleted by the end of FY2026, and all General Fund disaster reserves will be depleted by the middle of FY2029.

ATTACHMENTS: 1. Resolution No. 23-124 Establishing Policies for Reserves for the City’s General Fund, Enterprise Funds, and Internal Service Funds

2. Reserves Comparison with Other Jurisdictions

PREPARED AND
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: Kelly McAdoo, City Administrator
RESOLUTION NO. 23-124
A RESOLUTION OF THE COUNCIL OF THE C\TY OF SANTA

BARBARA ESTABLISHING POLICIES FOR RESERVES FOR

THE CITY'S GENERAL FUND, ENTERPRISE FUNDS AND

INTERNAL SERVICE FUNDS, AND AMENDING RESOLUTION
N0. 22-126.

WHEREAS, the City desires to establish policies regarding reserves for the various City funds for the purpose of providing consistent designations for different categories of reserves, ensuring fiscal security for the funds, and defining standards for minimum amounts to be maintained in reserves;
WHEREAS, such reserves policies will be most readily communicated and understood if they are consolidated and formally adopted in a single document; WhlEREAS, the Council has considered the proposed reserve policies applicable to the General Fund, Enterprise Funds, and Internal Service Funds at a regular Council meeting on September 12, 2023.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CIT/ OF SANTA BARBARA THAT the following reserves policies are adopted SECTION 1: CALCULATION OF RESERVE AMOUNTS
Final reserve balances will be calculated at end of each fiscal year after the closing of the City's accounting records. An amount will be established for each fund, as applicable, as a commitment of fund balance for each type of reserve established by this policy.

As soon as practical after the close of a fiscal year, staff will provide City Council a report showing the status of reserves as of June 30. At any time it is proposed to utilize reserves pursuant to this policy, staff will provide a similar report on reserves and projected fiscal impact from the proposed use of reserves.

SECTION 2: DISASTER RESERVES
The amount of the required Disaster Reserve is calculated based on 15% of the most recently adopted fiscal year operating expenditure budget.

The Disaster Reserve is restricted to use in addressing the financial impacts of natural disasters, such as storm, floods, wildfires, droughts, tsunamis, earthquakes and any other event that results in significant damage to City facilities and infrastructure or a significant reduction of normal operating revenues.

ATTACHMENT 1
The use of Disaster Reserves should generally be limited to federal or state declared disasters. The use of Disaster Reserves is also allowable in cases where the natural disaster is less severe, such as a major fire to a City building that requires temporary facilities to be leased. Disaster reserves may be used only after other available funds are exhausted, including the Contingency Reserve.

Examples of financial impacts that would justify the use of Disaster Reserves include:
. Extraordinary costs incurred in connection with the immediate emergency response to address public safety matters.
. Revenue losses resulting from a significant decline or temporary halt in services due to major damage to facilities, infrastructure and local businesses. . Additional costs necessary to maintain City operations. . Long-term costs incurred to rebuild City facilities and infrastructure.

SECTION 3: CONTINGENCY RESERVES
The Contingency Reserve is calculated based on 10% of the most recently adopted fiscal year operating expenditure budget.

The purpose of the Contingency Reserve is to allow for the orderly implementation of a balancing strategy to address the fiscal impacts of unexpected events in order to minimize the impacts to the organization and community. The most common of these events would be an economic recession that results in a significant impact on key revenues such as sales, transient occupancy or property taxes.

Other unexpected events for which these reserves could be used include the following . Natural disasters, as described above for Disaster Reserves; . Revenue impacts resulting from State of California actions or unfunded State mandates;
. Unexpected loss of external funding from sources such as grants or entitlements, . An unplanned loss of, or damage to, a City facility such as the loss of a building due to fire;
. Mitigation of an emergency that poses a threat to public health and safety; and . An adverse judicial action that requires large cash payments to third parties and is not covered by insurance.

The general intent of the Contingency Reserve is for unexpected events or situations. In general, its purpose is not to fund known or anticipated financial impacts, such as negotiated salary and benefit increases or scheduled increases to health insurance premiums or retirement costs.

SECTION 4: COUNCIL APPROVAL OF DISASTER AND CONTINGENCY

RESERVES
Any use of the Disaster or Contingency resen/es described in Sections 2 and 3 requires a majority vote of approval by the City Council.

When the use of reserves is recommended to the City Council by staff, the justification should include the following elements:

An Assessment of the Fiscal Condition and Outlook:

This assessment should include an objective evaluation of the operating fund's fiscal condition and an evaluation of the impacts of the event that triggered the need to use reserves. The purpose of this evaluation is to measure and define the scope and duration of the problem to assist in developing an appropriate balancing strategy.

This assessment of fiscal condition should include the use of available and relevant financial and non-financial data, including economic and demographic indexes and trends; historical revenue and expenditures results; and local economic forecasts developed by recognized academic and financial institutions and paid consultants.

Balancing Strateav
The balancing strategy should include measures that minimize the use of Contingency Resen/es, such as:
. Expenditure reductions achieved through efficiency measures, cuts to programs, services and associated staffing;
. Revenue enhancement measures that generate new or increased revenues; . Use of existing one-time funds; and
. Use of available reserves in other funds, as allowable and appropriate.

The balancing strategy should also be consistent with the nature of the fiscal impact. For example, a one-time impact may be resolved fully with the use of reserves, depending on its severity. However, an event that has an ongoing financial impact, such as decline in revenues due to a major recession, wilt require a balancing strategy that includes ongoing budget and programmatic adjustments to minimize the use of reserves.

Plan of Re lenishment
The replenishment plan should include the following elements, as appropriate:
. A one-time (one-year) use of reserves should be accompanied by a specific plan for how and when the reserves will be restored.

An extended use of reserves for more than one year should be accompanied by a long-term strategy that includes a more general plan for how the reserves will be restored.

SECTION 5: ENTERPRISE FUNDS
Enterprise Funds will be subject to the same Disaster and Contingency Reserve and approval requirements as described in Sections 2, 3 and 4 of this resolution.

Each Enterprise Operating Fund will establish a Capital Reserve, funded to at least 5% of the value of its capital assets. Alternatively, the Capital Reserve may also be established at an amount equal to the average of the planned capital program budgets for the upcoming three fiscal years, excluding major capital projects that will be debt funded. Appropriations from Capital reserves are intended to address an unexpected capital project or unanticipated increase in capital projects. Capital reserves might also be funded in excess of the minimum in preparation for major (pay-go or cash funded) capital projects.

Another option for funding major future capital projects is a Working Capital reserve.

These specific capital reserves would be designated for the replacement of critical infrastructure projected to be funded within a ten-year period. There is no minimum for these reserves as they will function as a working capital reserve for funding of large and costly infrastructure on a routine basis. These include the Council approved Desalination Reserve (Resolution No. 21-082), as well as Main Replacement Reserves (restricted to maintaining, rehabilitating, and installing new main or transmission pipelines) in the Water and Wastewater Enterprise Funds.

Bond funding for the Water and Wastewater Enterprise Funds requires a rate stabilization reserve (as outlined in the 2013 and 2016 bond documents, Resolution No. 13-029 and 16-168 respectively). The minimum reserve requirement for the rate stabilization fund is $2. 9 million and $1. 0 million for the Water and Wastewater Funds respectively. These funds are differentiated from Disaster, Contingency and Capital reserves as they can be considered revenue for the purpose of debt service coverage in a given fiscal year, if they are transferred within 150 days of the end of the prior fiscal year. These reserve funds are restricted and must be maintained and used only for this purpose. Staff may make additional deposits to this reserve if there are anticipated threats to revenues that might exceed the minimum resen/e. This might include increasing probability of drought and the need for mandatory water conservation, or other negative impacts on revenues that might reasonably be expected. Deoosits into the rate stabilization fund must be reflected as reductions in revenues for the year the deposits are made.

The Solid Waste and Clean Energy Enterprise Operating Funds shall utilize the contingency reserve to buffer a significant loss in revenue or the impacts of significant rate increases. The use of these reserves should be considered one-time revenue as future rates will need to be adjusted to address any ongoing expense increases to operating the enterprise.

Where applicable, each Enterprise shall maintain any required debt service reserve to support the long-term borrowing and shall be restricted to the level of indebtedness of the utility.

The City shall also consider establishing a line of credit with a banking institution that may be leveraged for financing capital projects and in the event of a disaster. Leveraging a line of credit is a viable risk management approach and may address short-term cash flow needs and lessen the need to require disaster reserves in the future. A line of credit shall not be used to pay for operating expenses. The cost of establishing a tine of credit shall be considered in relation to the investment earnings that may be achieved through investing funds in line with the City's investment policy and other operating considerations.

SECTION 6: RESERVE REQUIREMENTS FOR INTERNAL SERVICE FUNDS Internal Service Funds are not subject to the reserve requirements for Disaster Reserves or Contingency Resen/es. Instead, Internal Service Funds will maintain an operating reserve equal to 10% of the operating budget of the most recently adopted budget. This resen/e will be available to address unexpected events and natural disasters that affect the operations and revenue streams of the Internal Service Funds.

All Internal Service Funds will be subject to the 10% reserve requirement, with the exception of the Self-lnsurance Fund, which by design builds up assets for the payment of claims several years into the future, and the Facilities Management Fund, which is based on 10% of the adopted Building Maintenance Program Budget. As a result, there should be adequate cash reserves to cover unanticipated costs. In addition, the reser/e requirements do not apply to Internal Service Funds that are specifically designed to accumulate reserves for capital, such as the Vehicle Replacement Fund.

SECTION 7: APPROPRIATED RESERVES
An Appropriated Resen/e will be included in each operating fund's adopted budget to provide for unanticipated expenditures or to meet unexpected small increases in service delivery costs within the fiscal year. For the General Fund, the appropriated reserve should be at least $250, 000. For Enterprise and Internal Service operating funds, this reserve will be at least one-half of one percent of the operating budget. Any unused portion of the appropriated reserve in each fund will be returned to fund balance at the end of the fiscal year.

SECTION 8: ALLOCATION OF GENERAL FUND, ENTERPRISE FUNDS AND

INTERNAL SERVICE FUNDS YEAR-END SURPLUS TO PENSION EXPENSES AND

LIABILITIES
At the end of each fiscal year, any General Fund, Enterprise Funds and Internal Service Funds surplus realized from actual revenues exceeding actual expenditures including the annual capital program will be used to maintain reserve balances at levels required by this policy as well as address pension-related expenses and future liabilities. The amount of reserves to be transferred to a Section 115 trust to address pension-related expenses and future liabilities will be determined based on the proportional burden of expenses and liabilities in each fund. Maintaining reserve balances will be the highest priority, followed by addressing pension-related expenses and future liabilities.

RESOLUTION NO. 23-124

STATE OF CALIFORNIA )
)
COUNTY OF SANTA BARBARA ) ss.
)

CITY OF SANTA BARBARA )
I HEREBY CERTIFY that the foregoing resolution was adopted by the Council of the City of Santa Barbara at a meeting held on October 10, 2023, by the following roll call vote:

AYES:

NOES:

Councilmembers Eric Friedman, Alejandra Gutierrez, Oscar Gutierrez, Mike Jordan, Kristen W. Sneddon, Mayor Randy Rowse.

None
ABSENT: Councilmember Harmon
ABSTENTIONS: None
IN WITNESS WHEREOF, I have hereto set my hand and affixed the official seal of the City of Santa Barbara on October 11, 2023.
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Reserves Comparison with Other Jurisdictions ATTACHMENT 2 Source: California Society of Municipal Financial Advisors (CSMFO) Survey of General Fund Reserves, 2018
Source: Jurisdiction Reserve Policies, June 2023
25%
10%
26%
20%
30%
15%
20% 20%
17%
25%
30%
16%
20%
30%
25% 25% 25%
33%
0%
5%
10%
15%
20%
25%
30%
35%
GF Reserve Percentage
Average = 22.9%
25%
50%
40%
15%
33%
17%
12% 13%
16%
0%
10%
20%
30%
40%
50%
60%