Santa Barbara City Council
June 9, 2026

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Service charges 42,584,431 42,584,431 35,699,155 - 6,885,276 83.8% 33,374,684 Other Fees & Charges 30,000 30,000 20,209 - 9,791 67.4% 22,766 Investment Income 295,599 295,599 319,571 - (23,972) 108.1% 216,725 Rents & Concessions 30,133 30,133 25,117 - 5,017 83.4% - Grants 21,651 230,118 21,620 - 208,498 9.4% 95,086
Miscellaneous 28,888 28,888 12 - 28,876 0.0% 2,725
TOTAL REVENUES 43,199,169 42,990,702 36,085,684 - 7,113,485 83.5% 33,711,985

EXPENSES
Salaries & Benefits 2,416,512 2,438,536 1,846,076 - 592,460 75.7% 1,582,971 Materials, Supplies & Services 38,686,000 38,953,146 31,191,064 3,909,009 3,853,073 90.1% 28,002,634 Special Projects 810,100 810,100 356,555 1,547 451,998 44.2% 391,204 Transfers-Out 200,000 230,000 166,667 - 63,333 72.5% 166,667 Equipment 220,600 468,937 85,492 60,361 323,084 31.1% 138,217 Other 40,000 40,000 - - 40,000 0.0% -
TOTAL EXPENSES 42,940,718 42,373,212 33,645,853 3,970,918 5,323,948 87.6% 30,281,692 Revenue Less Expense 258,451 617,491 2,439,831 (3,970,918) 1,789,538 3,430,293

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

SOLID WASTE FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Water Sales- Metered 73,480,000 73,480,000 57,724,900 - 15,755,100 78.6% 56,396,859 Service Charges 254,500 254,500 309,149 - (54,649) 121.5% 289,454 Cater JPA Treatment 2,400,000 2,400,000 2,737,238 - (337,238) 114.1% 2,478,506 Investment Income 3,770,100 3,770,100 3,682,181 - 87,919 97.7% 2,876,879 Reimbursements 6,691,346 6,691,346 6,007,985 - 683,361 89.8% 5,741,486 Miscellaneous 160,000 160,000 926,626 - (766,626) 579.1% 730,587 TOTAL REVENUES 86,755,946 86,755,946 71,388,080 - 15,367,866 82.3% 68,513,771

EXPENSES
Salaries & Benefits 17,350,630 17,387,644 14,311,664 - 3,075,980 82.3% 12,482,812 Materials, Supplies 26,341,590 29,178,876 17,651,270 6,967,385 4,560,222 84.4% 13,269,931 Special Projects 1,000,535 1,052,983 403,015 154,938 495,030 53.0% 245,464 Water Purchases 8,670,000 8,670,000 7,834,968 - 835,032 90.4% 7,115,069 Debt Service 8,531,662 8,531,662 5,069,093 - 3,462,569 59.4% 5,634,876 Transfer-Out 61,392 61,392 44,938 - 16,454 73.2% 42,774 Capital Outlay Transfers 26,247,004 26,247,004 21,872,503 - 4,374,501 83.3% 20,152,458 Equipment 248,899 258,428 118,289 29,808 110,331 57.3% 128,922 Capitalized Fixed Assets 788,739 695,000 277,985 171,277 339,477 57.0% 165,701 Other 33,800 36,800 49,459 1,500 (14,159) 138.5% 39,408 Appropriated Reserve 150,000 150,000 - - 150,000 0.0% - TOTAL EXPENSES 92,363,528 89,330,512 67,633,183 7,324,909 17,405,436 81.2% 59,277,415 Revenue Less Expense (5,607,582) (2,574,566) 3,754,897 (7,324,909) (2,037,570) 9,236,356

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

WATER OPERATING FUND

Remaining
Adopted Revised YTD Encum- Balance with % of Previous
Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Service Charges 33,022,315 33,022,315 27,612,564 - 5,409,751 83.6% 25,557,645 Fees 636,100 636,100 340,628 - 295,472 53.5% 617,412
Investment Income 788,000 788,000 560,595 - 227,405 71.1% 568,453 Rents & Concessions 41,000 41,000 45,290 - (4,290) 110.5% 44,856 Miscellaneous 5,000 5,000 24,670 - (19,670) 493.4% (20,149) TOTAL REVENUES 34,492,415 34,492,415 28,583,747 - 5,908,668 82.9% 26,768,217

EXPENSES
Salaries & Benefits 11,447,868 11,468,496 9,467,214 - 2,001,282 82.5% 8,057,500 Materials, Supplies&Servs. 14,932,590 13,786,691 9,616,207 1,762,719 3,553,664 76.2% 8,744,847 Special Projects 762,600 902,095 144,382 252,850 504,862 44.0% 704,799 Transfer-Out 61,392 61,392 44,938 - 16,454 73.2% 42,774 Debt Service 3,557,337 3,557,337 2,462,812 - 1,094,525 69.2% 2,487,062 Capital Outlay Transfers 7,230,962 7,230,962 6,025,802 - 1,205,160 83.3% 5,049,792 Equipment 137,900 154,400 28,140 25,235 101,026 34.6% 65,406 Capitalized Fixed Assets 177,000 192,000 191,776 - 224 99.9% 134,240 Other 2,800 6,800 - 4,000 2,800 58.8% -
TOTAL EXPENSES 38,506,072 37,164,550 27,981,272 2,044,804 8,479,996 78.0% 25,286,420 Revenue Less Expense (4,013,657) (2,672,135) 602,475 (2,044,804) (2,571,328) 1,481,797 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

WASTEWATER OPERATING FUND

Remaining
Adopted Revised YTD Encum- Balance with % of Previous
Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Improvement Tax 1,000,000 1,000,000 717,787 - 282,213 71.8% 799,685 Parking Fees 8,671,008 8,671,008 7,026,350 - 1,644,658 81.0% 6,919,458 Other Fees & Charges 2,000 2,000 53.15 - 1,947 2.7% 2,002 Investment Income 151,000 151,000 118,284 - 32,716 78.3% 107,647 Rents & Concessions 148,399 200,959 138,177 - 62,782 68.8% 299,021 Miscellaneous 133,890 133,890 79,379 - 54,511 59.3% 115,443 Operating Transfers-In 133,618 133,618 114,561 - 19,057 85.7% 1,169,083 TOTAL REVENUES 10,292,475 10,239,915 8,194,592 - 2,097,883 79.6% 9,412,340

EXPENSES
Salaries & Benefits 5,456,925 5,469,406 4,588,336 - 881,069 83.9% 4,936,254 Materials, Supplies & Servs. 4,036,245 4,115,131 3,090,649 214,456 810,025 80.3% 3,898,320 Special Projects 130,093 130,093 35,558 11,969 82,567 36.5% 189,939 Transfer-Out 4,600 110,930 106,330 - 4,600 95.9% -
Capital Outlay Transfers 640,000 640,000 533,333 - 106,667 83.3% 375,000 Equipment 15,000 15,000 6,943 - 8,057 46.3% 3,204
Appropriated Reserve 10,000 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 10,490,559 10,292,863 8,361,149 226,425 1,902,985 81.9% 9,402,717 Revenue Less Expense (198,084) (52,948) (166,558) (226,425) 194,898 9,623 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

DOWNTOWN PARKING FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Leases-Commercial/Industrial 6,212,195 6,212,195 4,669,136 - 1,543,059 75.2% 4,697,771 Leases-Terminal 14,062,360 14,062,360 10,574,406 - 3,487,954 75.2% 10,286,709 Leases-Non-Commercial Aviation 5,621,893 5,621,893 4,891,925 - 729,969 87.0% 4,411,077 Leases-Commercial Aviation 7,863,830 7,863,830 6,131,430 - 1,732,400 78.0% 5,343,824 Investment Income 734,000 734,000 635,966 - 98,034 86.6% 508,456 Service Charges 1,719 1,719 - - 1,719 0.0% -
Miscellaneous & Ins. Proceed 67,738 6,067,738 175,541 - 5,892,198 2.9% 27,543 Operating Transfers-In 1,000,000 1,075,650 906,930 - 168,720 84.3% 1,901,249 TOTAL REVENUES 41,639,385 35,563,735 27,985,333 - 13,654,052 67.2% 27,176,629

EXPENSES
Salaries & Benefits 13,500,118 13,520,528 11,060,826 - 2,459,702 81.8% 9,671,762 Materials, Supplies & Services 16,740,663 18,277,031 12,572,976 1,825,643 3,878,412 78.8% 11,457,704 Special Projects 954,200 7,535,339 2,350,275 2,336,668 2,848,396 62.2% 2,526,320 Transfer-Out 315,661 315,661 238,234 - 77,427 75.5% 431,981 Debt Service 1,556,263 1,556,263 1,296,886 - 259,377 83.3% 1,297,083 Capital Outlay Transfers 8,495,979 8,489,428 7,074,523 - 1,414,905 83.3% 3,534,349 Equipment 250,806 441,448 71,094 47,023 323,331 26.8% 114,740 Other - 4,000 - 4,000 - 100.0% -
Appropriated Reserve 131,556 131,556 - - 131,556 0.0% - TOTAL EXPENSES 50,271,253 41,945,246 34,664,814 4,213,334 11,393,106 77.3% 29,033,939 Revenue Less Expense (8,631,868) (6,381,511) (6,679,481) (4,213,334) 2,260,946 (1,857,310) Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

AIRPORT OPERATING FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Fees & Card Sales 4,851,282 4,851,282 3,452,829 - 1,398,453 71.2% 3,613,814 Investment Income 174,000 174,000 169,208 - 4,792 97.2% 127,650 Rents & Concessions 242,550 242,550 183,877 - 58,673 75.8% 187,573 Miscellaneous - - 598 - (598) 0.0% 1,038
TOTAL REVENUES 5,267,832 5,267,832 3,806,512 - 1,461,320 72.3% 3,930,076

EXPENSES
Salaries & Benefits 119,176 119,389 110,015 - 9,374 92.1% 101,356 Materials, Supplies & Srvs. 3,952,760 3,954,721 2,628,985 - 1,325,737 66.5% 2,446,751 Special Projects - - (99) - 99 0.0% -
Capital Outlay Transfers 1,670,000 1,670,000 1,391,667 - 278,333 83.3% 500,000 TOTAL EXPENSES 6,344,110 5,741,937 4,730,567 - 1,613,543 74.6% 3,048,107 Revenue Less Expense (1,076,278) (474,105) (924,055) - (152,223) 881,969 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

GOLF COURSE FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Service Charges 3,211,405 3,211,405 2,676,171 - 535,234 83.3% 2,091,465 Work Orders - Bldg Maint. 5,068,194 5,068,194 4,158,269 - 909,925 82.0% 3,676,394 Miscellaneous & Ins. Proceed 5,500 5,500 164,308 - (158,808) 2987.4% 594 TOTAL REVENUES 8,285,099 8,285,099 6,998,747 - 1,286,352 84.5% 5,768,453

EXPENSES
Salaries & Benefits 4,319,283 4,335,413 3,283,261 - 1,052,152 75.7% 2,995,464 Materials, Supplies & Svcs. 2,946,651 3,115,209 2,426,189 366,157 322,862 89.6% 1,745,147 Special Projects 534,750 670,463 321,786 245,730 102,947 84.6% 293,840 Equipment 5,000 45,370 43,179 - 2,191 95.2% 4,899
Appropriated Reserve 39,000 39,000 - - 39,000 0.0% -
TOTAL EXPENSES 8,205,455 7,844,685 6,074,416 611,887 1,519,153 81.5% 5,039,351 Revenue Less Expense 79,644 440,414 924,331 (611,887) (232,801) 729,102

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

FACILITIES MANAGEMENT FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Vehicle Rental Charges 6,462,197 6,456,407 5,382,367 - 1,074,040 83.4% 4,910,067 Investment Income 884,077 884,077 946,378 - (62,301) 107.0% 656,393 Rents & Concessions 103,173 103,173 85,978 - 17,196 83.3% 85,978 Miscellaneous& Auction Proceed 68,000 68,000 262,251 - (194,251) 385.7% 187,219 Operating Transfers-In - 38,929 32,441 - 6,488 0.0% 6,383 TOTAL REVENUES 7,550,586 7,517,447 6,709,414 - 841,172 88.9% 5,846,040

EXPENSES
Salaries & Benefits 233,427 234,065 174,754 - 59,311 74.7% 174,667 Materials, Supplies & Svcs. 67,178 106,586 68,597 7,141 30,848 71.1% 36,482 Special Projects - 54,138 - - 54,138 0.0% -
Debt Service 624,562 606,371 303,186 303,186 (0) 100.0% 303,186 Capitalized Fixed Assets 4,300,026 11,039,718 1,180,174 2,520,335 7,339,209 33.5% 1,895,166 TOTAL EXPENSES 12,040,879 5,225,193 1,726,710 2,830,662 7,483,506 37.8% 2,433,823 Revenue Less Expense (4,490,293) 2,292,254 4,982,704 (2,830,662) (6,642,334) 3,412,217

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

FLEET REPLACEMENT FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Vehicle Maintenance Charges 4,042,561 4,044,561 3,358,693 - 685,868 83.0% 2,828,312 Reimbursements 5,000 5,000 4,167 - 833 83.3% 4,167
Miscellaneous 127,252 127,252 117,362 - 9,891 92.2% 107,973 TOTAL REVENUES 4,176,813 4,174,813 3,480,221 - 696,592 83.3% 2,940,452

EXPENSES
Salaries & Benefits 1,850,256 1,855,530 1,522,852 - 332,678 82.1% 1,425,067 Materials, Supplies & Svcs. 2,089,501 2,099,851 1,755,158 175,742 168,951 92.0% 1,671,719 Special Projects 56,804 57,204 42,538 13,960 706 98.8% 50,404 Equipment 7,884 7,884 112 6,269 1,503 80.9% 3,081
Appropriated Reserve 19,000 19,000 - - 19,000 0.0% -
TOTAL EXPENSES 4,039,468 4,023,444 3,320,659 195,970 522,839 87.1% 3,150,270 Revenue Less Expense 137,344 151,369 159,561 (195,970) 173,753 (209,818)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

FLEET MAINTENANCE FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Insurance Premiums 16,263,468 16,263,468 13,552,890 - 2,710,578 83.3% 10,907,622 Workers' Compensation Premiums 8,369,373 8,369,373 6,974,478 - 1,394,896 83.3% 5,415,113 OSH Charges 361,744 361,744 301,453 - 60,291 83.3% 301,453 Unemployment Insurance Premiums 191,912 191,912 159,927 - 31,985 83.3% 159,926 Investment Income 152,000 152,000 282,850 - (130,850) 186.1% 161,310 Operating Transfers-In 75,825 75,825 63,188 - 12,638 83.3% 63,188 TOTAL REVENUES 25,514,322 25,414,322 21,334,792 - 4,179,530 83.6% 17,008,611

EXPENSES
Salaries & Benefits 1,081,011 1,082,058 864,918 - 217,139 79.9% 823,596 Materials, Supplies & Services 23,702,665 23,892,823 15,719,732 449,239 7,723,852 67.7% 14,503,450 Special Projects - 25,000 19,450 - 5,550 77.8% 2,057
Capital Outlay Transfers 409 - - - - 0.0% -
Equipment - - 3,616 - (3,616) 0.0% -
TOTAL EXPENSES 24,999,880 24,784,085 16,607,717 449,239 7,942,925 68.2% 15,329,103 Revenue Less Expense 514,442 630,237 4,727,076 (449,239) (3,763,395) 1,679,509 The Self Insurance Trust Fund is an internal service fund of the City, which accounts for the cost of providing workers' compensation, property and liability insurance as well as unemployment insurance and certain self-insured employee benefits on a city-wide basis. Internal Service Funds charge other funds for the cost of providing their specific services.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

SELF INSURANCE TRUST FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Service charges 9,909,521 9,909,524 8,257,940 - 1,651,584 83.3% 7,301,480 Operating Transfers-In 692,803 692,803 525,279 - 167,524 75.8% 588,524 Miscellaneous - - 2,200 - (2,200) 0.0% -
TOTAL REVENUES 10,602,327 10,602,324 8,785,419 - 1,816,908 82.9% 7,890,004

EXPENSES
Salaries & Benefits 5,978,120 5,981,069 4,749,107 - 1,231,963 79.4% 4,393,404 Materials, Supplies & Services 3,503,075 3,637,398 3,242,721 43,752 350,926 90.4% 2,680,947 Capital Outlay Transfers 257,586 257,586 214,655 - 42,931 83.3% 202,342 Equipment 197,440 197,440 114,137 19,472 63,831 67.7% 35,546 TOTAL EXPENSES 10,073,494 9,936,222 8,320,620 63,223 1,689,651 83.2% 7,312,239 Revenue Less Expense 528,833 666,102 464,799 (63,223) 127,257 577,765

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

INFORMATION TECHNOLOGY FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Leases - Commercial 2,350,000 2,350,000 1,964,108 - 385,892 83.6% 1,819,726 Leases - Food Service 3,150,000 3,150,000 2,176,413 - 973,587 69.1% 3,071,417 Slip Rental Fees 6,442,630 6,442,630 5,459,306 - 983,324 84.7% 5,175,638 Visitors Fees 861,900 861,900 583,673 - 278,227 67.7% 623,427 Slip Transfer Fees 1,000,000 1,000,000 866,238 - 133,763 86.6% 798,150 Parking Revenue 4,499,350 4,499,350 3,450,857 - 1,048,493 76.7% 3,715,347 Wharf Parking 414,580 414,580 279,522 - 135,058 67.4% 291,993 Other Fees & Charges 235,565 235,565 199,515 - 36,050 84.7% 208,693 Investment Income 556,000 556,000 468,758 - 87,242 84.3% 409,455 Rents & Concessions 466,000 466,000 391,071 - 74,929 83.9% 412,679 Miscellaneous 812,830 812,830 692,510 - 120,320 85.2% 645,864 TOTAL REVENUES 20,788,855 20,788,855 16,590,619 - 4,198,236 79.8% 17,172,389

EXPENSES
Salaries & Benefits 9,517,459 9,540,432 7,854,573 - 1,685,859 82.3% 6,934,655 Materials, Supplies & Svcs. 8,166,920 8,318,627 6,132,516 848,886 1,337,225 83.9% 5,830,191 Special Projects 212,720 243,039 143,477 - 99,562 59.0% 139,060 Debt Service 2,029,369 2,029,369 2,029,369 - 0 100.0% 2,033,462 Capital Outlay Transfers 2,595,000 2,595,000 2,162,500 - 432,500 83.3% 1,895,833 Equipment 101,000 101,000 31,803 7,074 62,123 38.5% 97,585 Other 10,000 14,000 3,178 2,500 8,323 40.6% 1,000
Appropriated Reserve 100,000 100,000 - - 100,000 0.0% - TOTAL EXPENSES 22,941,467 22,732,468 18,357,416 858,460 3,725,591 83.8% 16,966,787 Revenue Less Expense (2,152,612) (1,943,613) (1,766,797) (858,460) 472,645 205,602 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

WATERFRONT OPERATING FUND

Remaining
Adopted Revised YTD Encum- Balance with Percent of Previous Budget Budget Actual brances Revised budget Budget YTD

REVENUES
Service Charges 47,370,084 47,370,084 34,626,893 - 12,743,191 73.1% 34,683,788 Investment Income 443,000 443,000 431,032 - 11,968 97.3% 643,735 Rents & Concessions 30,133 30,133 25,117 - 5,017 83.4% - Fed Tax Crd. EV Vehicles - - 90,278 - (90,278) 0.0% 125 TOTAL REVENUES 47,843,217 47,843,217 35,173,319 - 12,669,898 73.5% 35,327,648

EXPENSES
Salaries & Benefits 1,911,876 1,829,398 1,426,455 - 402,942 78.0% 1,238,621 Materials, Supplies & Svcs. 46,077,671 47,768,536 31,399,007 4,315,062 12,054,467 74.8% 39,306,183 Special Projects 2,104,671 2,542,511 1,648,158 184,066 710,287 72.1% 1,222,404 Equipment 5,500 9,032 9,172 - (140) 101.5% 1,468
Other 473,701 473,701 - - 473,701 0.0% -
TOTAL EXPENSES 52,623,178 50,573,418 34,482,792 4,499,128 13,641,258 74.1% 41,768,676 Revenue Less Expense (4,779,960) (2,730,201) 690,527 (4,499,128) (971,360) (6,441,027)

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Ten Months Ended April 30, 2026 (83.3% of Fiscal Year)

SANTA BARBARA CLEAN ENERGY FUND

City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: Parks and Recreation Department
Subject: First Amendment to Lease Agreement No. 28,617 with Sanctuary Centers of Santa Barbara, Inc. for Construction Staging at Spencer Adams Park [Agreement]
Recommendation:

That Council authorize the City Administrator to execute a first amendment to lease agreement 28,617 with Sanctuary Centers of Santa Barbara, Inc. for continued temporary use of 10,000 square feet of parking lot at Spencer Adams Park.

Discussion:

The Parks and Recreation Department (Department) administers lease agreements for facility space at below-market rates with local non-profit social service providers at its community centers, including the Westside Neighborhood Center, Franklin Community Center, and Haley Street Center. The Department also supports recreation and community service programs through co-sponsorships, collaborative initiatives, and temporary use of parks and recreational facilities.

On February 25, 2025, Council approved a lease agreement with Sanctuary Centers of Santa Barbara, Inc., to support temporary storage of equipment and materials and vehicle parking in support of the construction of its new building at 115 West Anapamu Street.

The purpose of the facility is to expand housing and health care support and provide recreational and social community space for its clients living with mental health illness.

The original term of the lease was 16 months, from March 1, 2025 to June 30, 2026, concurrent with the construction of the new building. Due to unexpected construction delays, Sanctuary Centers has requested a lease extension. This first amendment will extend the lease term by 12 months, with a new end date of June 30, 2027.

Budget/Financial Information:

The monthly rental rate for the leased space is $4,050, which will be appropriated in the Parks and Recreation Department operating budget.

Agenda Item No. 6
Council Agenda Report
First Amendment to Lease Agreement No. 28,617 with Sanctuary Centers of Santa Barbara, Inc. for Construction Staging at Spencer Adams Park [Agreement] June 9, 2026

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

Prepared And
Submitted By: Jill E. Zachary, Parks and Recreation Director Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: Public Works Department
Subject: Agreement with Easy Lift Transportation, Inc. for Paratransit Services [Agreement]
Recommendation:

That Council authorize the Public Works Director to execute a five-year agreement with Easy Lift Transportation, Inc. for paratransit services for elderly and mobility impaired people in an amount not to exceed $317,005 for Fiscal Year 2027, with an annual adjustment based on the Consumer Price Index and the availability of Measure A funds.

Discussion:

Easy Lift Transportation, Inc. (Easy Lift) is a non-profit agency that provides vital transportation services for senior and mobility-impaired members of the community through Dial-A-Ride paratransit services throughout south Santa Barbara County.

The City of Santa Barbara (City) has had an agreement with Easy Lift since 1990, whereby the City subsidizes Easy Lift’s paratransit services from local Measure A transportation sales tax measure funds. Continuing this partnership with Easy Lift by entering an agreement for services for the next five years complies with the requirement that the City use a portion of its Measure A funds to encourage and implement forms of alternative transportation. From July 2024 through June 2025, Easy Lift provided 60,181 rides to over 2,500 individuals. Easy Lift reports that 68% of the rides provided in the past 12 months have been for residents of the City.

As the only provider of wheelchair accessible, specialized transportation for the community, Easy Lift looks to fulfill the ever-expanding need for vital transportation services of vulnerable constituents through the continued provision of the Dial-A-Ride service. As new medical care facilities have broadened healthcare access across the region in recent years, Easy Lift has continued to deliver consistent, uninterrupted service to the community, with safety measures that were enhanced and maintained throughout the COVID-19 pandemic. Although rideshare services have expanded the availability of Agenda Item No. 7
Council Agenda Report
Agreement With Easy Lift Transportation, Inc. for Paratransit Services [Agreement] June 9, 2026

private rides, Easy Lift is the only wheelchair-accessible option and routinely provides accessibility training to its staff.

Operating for 16 hours a day, the Dial-A-Ride service provides over 175 rides daily and remains affordable for its passengers at only $5.00 per ride. The actual cost to provide each ride is $70. With fuel and auto-liability cost increases outpacing inflation, the City’s sustained funding plays a crucial role in helping keep Easy Lift fares affordable. Because the nonprofit relies on local tax subsidies that fluctuate with economic conditions, this support remains essential to its operations.

Budget/Financial Information:

The proposed Fiscal Year 2027 Measure A Fund Budget includes $317,005 in funding for the recommended Easy Lift agreement. With adoption of the City’s Recommended Budget for Fiscal Year 2027, no additional appropriations will be necessary to cover the cost of this five-year agreement. Staff will include funding for future years in the annual budget process.

A copy of the agreement may be requested from the Public Works Department for public review; please contact [email protected] to request a copy.

Environmental Review:

The agreement to help fund Easy Lift’s paratransit program for five years would not have any direct or reasonably foreseeable indirect physical change to the environment; therefore, the administrative action does not meet the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines Section 15378 (b)(5), which states that administrative activities of governments that will not result in direct physical changes in the environment are not subject to CEQA environmental review.

Prepared By: Ashleigh A. Sizoo, P.E., City Engineer/JWG/nv 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: June 9, 2026
To: Mayor and Councilmembers
From: Finance Department
Subject: Living Wage Annual Report for the Fiscal Year (FY) 2026 Recommendation:

That Council receive the Living Wage Annual Report for Fiscal Year 2026.

Discussion:

The Living Wage Ordinance went into effect July 1, 2006, and stated… “…a person or other legal entity (other than a public entity or a nonprofit entity) which enters into one or more contracts with the City to provide services to the City (other than recreation services to the public), where the amount paid by the City to the person or entity may exceed or exceeds Fifteen Thousand Dollars ($15,000) when such compensation is calculated on a City fiscal year basis. Municipal Code 9.128.010 C.” When first implemented, the ordinance established three (3) living wage tiers based on the level of benefits provided by the employer. In the first tier, employers that did not offer benefits were required to pay a minimum of $14.00 per hour. The second tier consisted of employers that provided basic medical insurance at no cost to the employee along with compensated time off and were permitted to pay a reduced rate of $12.00 per hour. A third tier allowed a rate of $11.00 per hour for employers that offered basic medical insurance at no cost, compensated time off, and an additional supplemental benefit.

At the time the Ordinance was adopted, its requirements applied to any business holding one or more City contracts totaling $15,000 or more within a calendar year. The threshold was based on the cumulative value of all contracts a vendor held with the City, regardless of department. For example, if a vendor had three separate $5,000 contracts with three (3) different departments, the vendor would still be subject to the ordinance because the combined contract value met the $15,000 threshold. The contract threshold amount and hourly wage tier are adjusted annually each July 1 by the January-January change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for Los AngelesRiverside-Orange County, with an annual adjustment cap of 6.0%.

Agenda Item No. 8
Council Agenda Report
Living Wage Annual Report for Fiscal Year (FY) 2026
June 9, 2026

Over the years, City staff collaborated closely with the Living Wage Advisory Committee to refine the Living Wage requirements into a more streamlined and sustainable program.

This work included consolidating the wage threshold into a single highest tier, updating the ordinance in response to changes in State and Federal law, and conducting outreach to ensure all employees are aware of the Ordinance.

On September 17, 2024, the City Council adopted Resolution 24-106, formally sunsetting the Living Wage Advisory Committee. Under this resolution, City staff are now required to provide an annual report to the City Council on the status of all City-held living wage contracts.

FY2026 Report
The hourly rate for this past year was $23.12 per hour with an aggregate contract threshold of $24,778. Forty-five vendors were subject to the Living Wage requirement ranging in services from vehicle repair to janitorial services. Multiple landscape contractors were also subject to both the State Prevailing Wage Rates and the Living Wage Rates and were required to pay the higher of the two (2) rates. No complaints or violations were reported to staff in FY2026.

Living Wage Rates for FY2027
On July 1, 2026, the new hourly rate for FY2027 will increase to $23.84 per hour with the contract threshold set at $25,546.

Budget/Financial Information:

There is no budget or financial impact for receiving the Living Wage Annual Report for FY2026.

Sustainability Impact:

None.

Prepared By: Greg Corral, General Services Manager
Submitted By: Keith DeMartini, Finance Director
Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office & City Attorney’s Office Subject: Adoption of Resolutions Relating to the General Municipal Election of November 3, 2026 [Resolution]
Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Calling for the Holding of a General Municipal Election to be Held in the City on Tuesday, November 3, 2026, for the Election of Certain Officers as Required by the Provisions of the Charter and Applicable Provisions of the California Elections Code; B. Request and authorize the Board of Supervisors of the County of Santa Barbara to operate the General Municipal Election to be held on November 3, 2026; C. Provide direction regarding whether to charge candidates the cost of printing candidate statements;
D. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 09-055, Adopting Regulations for Candidates for Elective Office Pertaining to Candidates’ Statements to be Provided to the Voters for the General Municipal Elections to be Held in the City. The proposed amendments clarify that, pursuant to California Elections Code section 13308, if the City determines that a candidate is indigent, the City shall print and mail the candidate statement without requiring advance payment. Candidates may request a waiver of the advance payment requirement by timely filing a statement of financial worth. The City Clerk shall provide the required forms and administer the indigency determination process; and
E. The title of the Ordinance and/ or Resolution has been read; if there is no objection from any Councilmember present, further reading is waived pursuant to Santa Barbara City Charter § 511.

Discussion:

Adoption of Resolution
As required by the City Charter and the California Elections Code, the City Council is requested to adopt the appropriate resolution, which calls for the election and authorizes Agenda Item No. 9
Council Agenda Report
Adoption of Resolutions Relating to the General Municipal Election of November 3, 2026 [Resolution]
June 9, 2026

the conduct of the election. The purpose of the General Election is to fill the four-year Mayoral Term and the four-year Councilmember terms for Districts 4, 5, and 6.

The candidate filing period will be July 13 through August 7, 2026. The term of Mayor Randy Rowse will be expiring in January 2027. The terms of Councilmembers Kristen W.

Sneddon, Eric Friedman, and Meagan Harmon will be expiring in January 2027. The November 3, 2026, Election will be the sixth by-district election conducted pursuant to the Settlement Agreement in Banales, et al. v. City Of Santa Barbara. The proposed resolution states that the City Council will approve that the Mayoral term and Districts 4, 5, and 6, will be up for election this year in the General Election. Attached to the Resolution are the final approved electoral district map and legal description.

County Operation of Election
Staff is also requesting that the Board of Supervisors of the County of Santa Barbara operate the General Municipal Election as an all-mail ballot election to be held on November 3, 2026. Ballot drop-off locations will be operated by the County and identified closer to the election. Polling locations that the County used in the last election will be provided with signage, directing voters to the designated drop-off centers, and providing direct phone numbers to the City Clerk’s Office and the County Registrar of Voters’ Office.

The California Elections Code allows each candidate for a nonpartisan elective office in a city to prepare a statement which will be mailed to each registered voter as part of a voter information guide. Resolution No. 09-055 provides that candidates will be permitted to submit candidate’s statements containing up to 200 words, and there will be no charge to the candidate for the printing of the statement.

Cost Distribution of Printing Candidate Statements
Staff is requesting Council direction on whether to require candidates pay for the cost of printing their optional candidate statements in the County’s printed voter information guide. The County estimates those costs to be as follows:
 City of Santa Barbara Mayor - $2,427.00
 City of Santa Barbara District 4 - $976.00
 City of Santa Barbara District 5 - $947.00
 City of Santa Barbara District 6 - $901.00
If there are 10 Candidates for Mayor, and 5 candidates for each Council District, the total cost of printing the statements will be $38,390. If candidates are not paying these costs, then the City’s General Fund will bear the costs. Surrounding cities, including Goleta, Council Agenda Report
Adoption of Resolutions Relating to the General Municipal Election of November 3, 2026 [Resolution]
June 9, 2026

Carpinteria, Ventura, Lompoc, and Santa Maria, all require that candidates pay the cost of printing their statement.

There is the potential for variation in the cost per statement from what was estimated, in which case the County will inform the City after the election, and the City will charge the candidates the difference. If the cost is smaller than the estimate, the City will refund the candidates the difference.

If the City does require candidates to pay for a printed statement, and a candidate chooses not to do so, the statement will still appear on the City’s election website.

If the City determines that the candidate is indigent, the City shall print and mail the statement per Cal. Elections Code section 13308. Candidates may seek waiver of advance payment by timely filing a statement of financial worth. The City Clerk will furnish the required forms and process indigency determinations.

Division of Labor with County
The City Clerk’s office will continue to handle the candidate filing period, filing of campaign financial statements, and candidate video interviews. City staff will then provide final information to Santa Barbara County to design, print, mail, and distribute the ballots.

Ballots will be returned to the Santa Barbara County registrar staff, and County staff will perform the canvass of returns.

Budget/Financial Information:

The City Administrator’s recommended budget for Fiscal Year 2027 for the City Clerk’s Office includes $250,000 to cover the estimated cost of the election.

Prepared and
Submitted By: Sarah Gorman, MMC, City Clerk Services Manager Approved By: Kelly McAdoo, City Administrator
Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA CALLING FOR THE HOLDING OF A GENERAL

MUNICIPAL ELECTION TO BE HELD IN THE CITY ON
TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF

CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF

THE CHARTER AND APPLICABLE PROVISIONS OF THE

CALIFORNIA ELECTIONS CODE

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

1. Pursuant to the requirements of the Charter of the City of Santa Barbara there is called and ordered to be held in the City of Santa Barbara on Tuesday, November 3, 2026 (“Election Day”), a General Municipal Election for the purpose of electing the Mayor and three Councilmembers for the full term of four years.

2. The Mayoral term and Districts 4, 5, and 6, as depicted on the electoral district map adopted by Ordinance No. 6065, shall be up for election.

3. The City Clerk is authorized, instructed, and directed to coordinate with the County of Santa Barbara Clerk/Recorder Elections Division to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

4. The election shall be conducted by the County of Santa Barbara Clerk/Recorder Elections Division pursuant to applicable laws.

5. Notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election in time, form, and manner as required by law.

6. Pursuant to Elections Code sections 10401 and 10403, the Board of Supervisors of the County of Santa Barbara is hereby requested to consent and agree to the consolidation of the election with the general municipal election and statewide general election to be held on Tuesday, November 3, 2026, for the submission of the measure.

7. The County Elections Division is hereby authorized to canvass the returns of the election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

8. The Board of Supervisors of the County of Santa Barbara is hereby requested to issue instructions to the County Elections Division to take any and all steps necessary for the holding of the consolidated election.

9. The City Council of the City of Santa Barbara recognizes that additional costs will be incurred by the County of Santa Barbara by reason of this consolidation and hereby agrees to reimburse the County for these costs, in accordance with the provisions of Section 1205 of the City Charter.

10.If any two or more persons receive an equal and the highest number of votes (tie vote) as certified by the elections official, the City Council will set a time, date, and place and summon the candidates who received the tie votes to appear and will determine the tie by lot in accordance with Election Code § 15651(a).

11.The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County Elections Division of the County of Santa Barbara.

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA
BARBARA AMENDING RESOLUTION NO. 09-055, ADOPTING

REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE
PERTAINING TO CANDIDATES’ STATEMENTS TO BE

PROVIDED TO THE VOTERS FOR THE GENERAL

MUNICIPAL ELECTIONS TO BE HELD IN THE CITY
WHEREAS, Section 13307 of the California Elections Code provides that the governing body of any local agency may adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidate’s statement.

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

1. Pursuant to Section 13307 of the California Elections Code, each candidate for elective office to be voted for at an election to be held in the City of Santa Barbara, may prepare a candidate’s statement on an appropriate form provided by the City Clerk’s Office.

The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words as determined by California Elections Code Section 9, of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations.

The statement in typewritten form shall be filed in the City Clerk’s Office at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

2. Candidates will be required to pay the estimated cost for their statement at the time of submission. The estimated cost is subject to change based on the finalization of election-related expenses. Following the election, any overpayment shall be refunded to the candidate, and any underpayment shall be invoiced and remain payable until received, regardless of whether the candidate is elected. If the City determines that the candidate is indigent, the City shall print and mail the statement. Cal. Elections Code section 13308. Candidates may seek waiver of advance payment by timely filing a statement of financial worth. The City Clerk will furnish the required forms and process indigency determinations.

3. Pursuant to the Federal Voting Rights Act, the City is required to translate candidate statements into Spanish.

4. No candidate will be permitted to include additional materials in the sample ballot package.

5. The City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued.

6. This Resolution shall apply at the next ensuing municipal election and at each subsequent municipal election after that time unless revised by a subsequent Resolution of this Council.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Appointments to City Advisory Groups
Recommendation:

That Council make appointments to various City Advisory Groups.

Discussion:

On May 5, 2026, the Council interviewed applicants for vacant positions on various City Advisory Groups. On March 16, April 6, April 20, and May 4, 2026, the Santa Barbara Youth Council (SBYC) interviewed SBYC applicants.

In accordance with Resolution No. 25-096, the Guidelines for all City Advisory Groups, all applicants have been notified that to be considered for appointment, they must be interviewed by City Council; and SBYC applicants must be interviewed by the current SBYC in addition to City Council. Applicants who failed to appear for an interview are removed from the list of those eligible for appointments and can only be considered for appointment by a majority vote from Council.

Attachment 1 is a memorandum from the Santa Barbara Youth Council regarding their recommendations to City Council, for appointment to the SBYC. Attachment 2 is a list of all applicants that are eligible for appointments. The appointments to the Advisory Groups will be effective July 1, 2026. Terms left unfinished due to unscheduled vacancies are filled with new applicants first, if applicable.

Agenda Item No. 10
Council Agenda Report
Appointments to City Advisory Groups
June 9, 2026

Attachments:

1. Memo from SBYC dated May 21, 2026

2. List of Eligible Applicants
Prepared and
Submitted By: Norma Welche, CMC, Deputy City Clerk
Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Parks and Recreation Department
Memorandum
DATE: May 21, 2026
TO: Mayor and Councilmembers
FROM: Santa Barbara Youth Council
SUBJECT: Recommendations for Appointment to the Santa Barbara Youth Council – Spring Advisory Board Recruitment Cycle 2026
On March 27, 2012, the City Council approved Resolution No. 12-018, formally establishing the Santa Barbara Youth Council as a City Council advisory committee. Resolution No. 12- 018 stipulated applicants for vacant Youth Council positions would be interviewed by both the Mayor and City Council and the sitting Youth Council. After which, the Youth Council would submit its recommendations for Council consideration for filling vacant positions as part of the regular semi-annual recruitment and appointment process for City Council boards and commissions.

On April 22, 2025, City Council approved Resolution No. 25-041 amending Resolution No. 12-018 by revising the Santa Barbara Youth Council’s membership requirements to ensure fewer vacancies arise during recruitment cycles.

The Youth Council conducted applicant interviews on March 16, April 6, April 20, and May 4, 2026. On May 18, 2026, the Santa Barbara Youth Council voted to send the following recommendations to the City Council for vacant Youth Council positions based on the desire to maintain a diverse board of individuals with proven leadership skills, past participation and experience, and the ability to fulfill the necessary time commitment.

1. Nicholas Gaston, (SBUSD, SBHS - City)

2. Jaxon Honeycutt (SBUSD, DPHS - County)

3. Amelia Leonardi (SBUSD, SMHS – City)

4. Maya Llewellyn (SBUSD, SMHS – County)

5. Wyatt Wagner (SBUSD, SMHS – City)

6. Carter Saunders (Public at Large – County)

7. Piper McGinnis (Public at Large – County)

8. Oliver Nevius (Public at Large – County)
ATTACHMENT 1
City of Santa Barbara
Parks and Recreation Department
PREPARED BY: Nicole Morgan, Recreation Coordinator
SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Building & Fire Code Board of Appeals
 Four vacancies.
 Term expirations of June 30, 2028, and June 30, 2030.  Qualifications and Categories: Members may be residents of the City or adjoining unincorporated areas of Santa Barbara County. Appointees shall demonstrate knowledge and expertise in specialty areas governed by the construction and fire codes of the City. At least three of the seven members must be from the disability community.  Appointees may not hold any full-time paid office or employment in City government.

Applicants:

NOTE: At least two new appointees must be members that are physically disabled; it is recommended to leave one position vacant to meet this requirement at a future recruitment cycle.

1. Dr. James Marston, physically disabled requirement category. a. Incumbent first appointed on June 18, 2019; 7 years of service.

2. James Dewey

3. Jay Higgins

4. Michael McGuire

5. Elizabeth Sorgman
a. Incumbent first appointed on June 28, 2022; 4 years of service.

Central Coast Commission for Senior Citizens
 One vacancy.
 Term expiration of June 30, 2028.
 Qualifications and Categories: Appointee must reside within the City of Santa Barbara.  Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. E. Howard Green
a. Incumbent first appointed on June 30, 2019; 7 years of service.

SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Citizens’ Oversight Committee
 One vacancy.
 Term expiration of December 31, 2026.
 Qualifications and Categories: Appointee must be a qualified elector of the City of Santa Barbara who is a U.S. citizen, age 18 years or older.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. Robert Eugene Sears, Jr.

2. Poornima Wagh
a. Order of Preference for appointment consideration:
i. Citizens’ Oversight Committee
ii. Sister Cities Board
iii. Historic Landmarks Commission
iv. Neighborhood Advisory Council
Community Development & Human Services Committee
 Two vacancies.
 Term expirations of December 31, 2026, for the Eastside Community category; and December 31, 2027, for the Latino Community category.
 Qualifications and Categories: Appointees must be residents or employees or the designated organizations and qualified electors of the County of Santa Barbara who are U.S. citizens, age 18 years or older. For the current vacancies, appointees must be from either of the following categories: Eastside Community, or Latino Community.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. For the Eastside Community category:
a. Jaime Ross

2. For the Latino Community category:
a. None.

SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Historic Landmarks Commission
 One vacancy.
 Term expiration of December 31, 2027.
 Qualifications and Categories: Member may be a qualified elector of the City of Santa Barbara who is a U.S. citizen, age 18 years or older, or a non-City resident. Members must meet one of the following categories: licensed architect; professional architectural historian; licensed landscape architect; or a member from the public at large.  Appointees may not hold any full-time paid office or employment in City government.

Applicants:

NOTE: New appointee can be from any of the following categories.

1. For the Public at Large category:
a. Poornima Wagh – qualified elector
i. Order of Preference for appointment consideration:

1. Citizens’ Oversight Committee

2. Sister Cities Board

3. Historic Landmarks Commission

4. Neighborhood Advisory Council

2. For the Professional Architectural Historian category:
a. Nicole Caldwell – qualified elector

3. For the Licensed Architect category:
a. Will Rivera – qualified elector
SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Housing Authority Commission
 Three vacancies.
 Term expirations of June 30, 2030, for the Public At Large category, and June 30, 2028, for the Tenants category.
 Qualifications and Categories: Members should have some interest and background in housing development, management, or other comparable experience. One member may be a non-City resident. All members should meet one of the following categories:
o Representative of the Public at Large.
o Tenant who is receiving housing assistance from the Housing Authority. o Senior tenant who is receiving housing assistance from the Housing Authority and is at least 62 years of age or older.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

NOTE: Please select only ONE applicant from each of the following 3 categories.

1. For the Public at Large category:
a. Lisa Carlos, city resident
i. Incumbent first appointed on January 31, 2023; 3 years and 6 months in service.

2. For the Tenant category:
a. Gina Quiroz, city resident
b. Joseph Samora, city resident
i. Incumbent first appointed on June 10, 2025; 1 year in service.

3. For the Senior Tenant category:
a. Mary Fenger, city resident
i. Incumbent first appointed on November 12, 2019; 6 years and 7 months in service. b. Lisa Sands, city resident
SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Neighborhood Advisory Council
 One vacancy.
 Term expiration of December 31, 2029.
 Qualifications and Categories: Member must reside within the City of Santa Barbara representing the public at large.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. Dave Botsford

2. Tamara Sack

3. Poornima Wagh
a. Order of Preference for appointment consideration:
i. Citizens’ Oversight Committee
ii. Sister Cities Board
iii. Historic Landmarks Commission
iv. Neighborhood Advisory Council
Parks & Recreation Commission
 One vacancy.
 Term expiration of June 30, 2027.
 Qualifications and Categories: One Youth Intern who shall be a high school student volunteer who resides within the Santa Barbara High School District or attends other high schools within City limits and is nominated by the principal of the student’s high school. The student shall be and remain a student in good standing as is determined by the high school. A student that graduates shall not serve for more than three (3) months following graduation.  Appointees may not hold any full-time paid office or employment in City government.

Applicants:

None.

SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Rental Housing Mediation Board
 Three vacancies.
 Term expirations of December 31, 2027, for two Landlord Mediators; December 31, 2028, for one other Landlord Mediator.
 Qualifications and Categories: Appointee may be a resident of the City or County of Santa Barbara. Non-city residents must reside within a jurisdiction which contracts with the Rental Housing Mediation Program for services (currently, Goleta and Carpinteria). For the current vacancies, appointees must be Landlords who must own or manage single or multiple residential units.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. Anthony Dal Bello, city resident

2. Joseph Navarro, city resident
SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Santa Barbara Youth Council
 Eleven vacancies.
 Term expirations of June 30, 2027, for three SBUSD High School students, and one Public at Large representative; and June 30, 2028, for one Local Private High School/Independent Studies student, three other SBUSD High School students, and three Local Alternative, Community, or Continuation School/Public at Large representatives.  Qualifications and Categories: Members must be between the ages of 13-19 years old. Majority of members must be residents of the City of Santa Barbara, with only up to 5 new appointees being Couty residents; and meet one of the following categories:
o Students representing the public at large.
o Students from local alternative, community, or continuation high schools. o Students from a local private high school or independent studies. o Students attending SBHS, SMHS, or DPHS.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

NOTES: ALL applicants can also be appointed as Public at Large.

1. For the SBUSD High School Students category (6 vacancies):

SMHS (up to 3 new appointees); SBHS (only 1 new appointee); DPHS (up to 2 new appointees).
a. Nick Gaston, SBHS, city resident
i. Incumbent first appointed on November 19, 2024; 1 year and 6 months in service. b. Jaxon Honeycutt, DPHS, county resident
c. Amelia Leonardi, SMHS, city resident
i. Incumbent first appointed on June 10, 2025; 1 year in service. d. Maya Llewellyn, SMHS, county resident
e. Wyatt Wagner, SMHS, city resident
i. Incumbent first appointed June 10, 2025; 1 year in service.

2. For the Public at Large category (4 vacancies):
a. Piper McGinnis, county resident
i. Incumbent first appointed on December 2, 2025; 6 months in service. b. Oliver Ramsey Nevius, county resident
c. Carter Saunders, county resident
i. Incumbent first appointed on June 10, 2025; 1 year in service.

SPRING 2026 ADVISORY GROUP RECRUITMENT

ATTACHMENT

Single Family Design Board
 One vacancy.
 Term expiration of June 30, 2030.
 Qualifications and Categories: Members must be residents of Santa Barbara County, though, members representing the public at large must be residents of the City of Santa Barbara.

Appointees may also serve on the Architectural Board of Review or Historic Landmarks Commission. Members must meet one of the following categories:
o Licensed Architect.
o Member possessing Professional Qualifications in fields related to architecture, including but not limited to architecture or landscape architecture; including but not limited to building design, structural engineering, industrial design, urban planning, or landscape contracting.
o Public at large.
 Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. Shanar Moslehy, Professional Qualifications, county resident a. Incumbent first appointed on June 11, 2024; 2 years in service.

Sister Cities Board
 One vacancy.
 Term expiration of December 31, 2026.
 Qualifications and Categories: Member must be a resident of the City.  Appointees may not hold any full-time paid office or employment in City government.

Applicants:

1. Nimita Dhirajlal

2. Poornima Wagh
a. Order of Preference for appointment consideration:
i. Citizens’ Oversight Committee
ii. Sister Cities Board
iii. Historic Landmarks Commission
iv. Neighborhood Advisory Council

3. Steve Winterhalter

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: June 09, 2026
TO: Mayor and Councilmembers
FROM: Human Resources Department
SUBJECT: City Workforce Vacancies, Recruitment, and Retention Trends for Calendar Year 2025
RECOMMENDATION:

That Council:

A. Receive a status update from Human Resources on vacancies, recruitment, and retention trends;
B. Receive a presentation from bargaining units that choose to make a presentation regarding vacancies within their unit; and
C. Hold a public hearing and take any public comment pertaining thereto.

DISCUSSION:

Governor Newsom's signing of Assembly Bill 2561 (AB 2561), which took effect January 1, 2025, requires public agencies, including the City of Santa Barbara, to hold at least one (1) public hearing per fiscal year to discuss staff vacancies and recruitment and retention efforts. This report discusses the City of Santa Barbara’s legal obligations under the new law.

AB 2561 was introduced as a measure to address the issue of job vacancies in local government, which can adversely affect the delivery of public services and employee workload. The bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year.

In compliance with the new legal obligations, the City of Santa Barbara is required to do the following:

1. Public Hearing: At least once each fiscal year, at a public hearing before the City Council, the City shall present information regarding the status of vacancies and recruitment and retention efforts (Gov. Code § 3502.3(a)(1)) and identify any necessary changes to policies, Agenda Item No. 11
Council Agenda Report
City Workforce Vacancies, Recruitment, and Retention Trends for Calendar Year 2025June 9, 2026

procedures, and recruitment activities that may lead to obstacles in the hiring process (Gov.

Code § 3502.3(a)(3)). This presentation must occur prior to the City Council’s adoption of the final budget. (Gov. Code § 3502.3(a)(2).)

2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit at the City of Santa Barbara to make presentations during the public hearing concerning vacancies and recruitment and retention efforts. There is no required percentage threshold needed to allow a bargaining unit to make a presentation. There are eight (8) represented bargaining units in the City of Santa Barbara that represent full-time positions.

3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit meet or exceed 20% of authorized full-time positions in that bargaining unit, upon request of the recognized employee organization for that bargaining unit, the City of Santa Barbara must provide additional information during the public hearing, which includes the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. As reflected in the attachment, no bargaining unit within the City met or exceeded the 20% vacancy rate limit as of December 27, 2025. These vacancy rates ranged from 0% to 12.8% with an average of

7.63%.

BUDGET/FINANCIAL INFORMATION:

There is no direct fiscal impact associated with conducting the public hearing required under Government Code Section 3502.3. However, addressing recruitment and retention issues may involve future budget and bargaining considerations, which will be presented to the City Council as necessary.

Bargaining Unit
American Federation of State, County, and Municipal Employees (AFSCME) Supervisory Employees
SEIU General Unit
SEIU Treatment and Patrol (TAP)
Police Management Association (PMA)
Police Officer’s Association (POA)
Fire Management Association (FMA)
Fire Association
Council Agenda Report
City Workforce Vacancies, Recruitment, and Retention Trends for Calendar Year 2025June 9, 2026

ATTACHMENT(S):

1. Vacancy and Recruitment Data

PREPARED AND
SUBMITTED BY: Matt Escobedo, Human Resources Manager
APPROVED BY: Kelly McAdoo, City Administrator
Attachment 1. Vacancy and Recruitment Data

ATTACHMENT

City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: Finance Department
Subject: Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction]
Recommendation: That Council:

A. Approve certain adjustments to the FY2027 Recommended Budget identified by staff as detailed in the Schedule of Recommended Adjustments; B. Provide final direction to staff based on the Council’s review of the FY2027 Recommended Budget over the last several weeks;
C. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending Santa Barbara Municipal Code Section 4.24.190 to Adjust the Appropriations of Funds from the Utility Services Tax; D. Provide direction to staff regarding the draft Resolution of the Council of the City of Santa Barbara Regarding the FY2027 budget, being out of compliance with Resolution 23-124, the Policies for Reserves; and
E. The title of the Ordinance and/or Resolution has been read; if there is no objection from any Councilmember present, further reading is waived pursuant to Santa Barbara City Charter § 511.

Executive Summary:

The City of Santa Barbara is nearing completion of the FY2027 Operating and Capital Budget preparation process. Over several weeks, the City Council reviewed department presentations outlining operational needs, capital priorities, and the City’s overall financial outlook. This Council Agenda Report summarizes the staff recommended adjustments, key policy considerations raised by Council, and proposed updates to the City’s Utility Users Tax (UUT) ordinance.

Staff recommend Council approve several technical and programmatic adjustments across City funds to ensure the budget reflects accurate revenues, expenditures, and staffing allocations. These adjustments include clerical corrections, refinement of fund transfers, and updates to better align staffing with operational needs. Collectively, the adjustments result in a small net change to multiple funds and a modest net decrease in General Fund costs.

Agenda Item No. 12
Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

Throughout the budget review process, Councilmembers raised several areas requiring further evaluation, including the timing and amount of a planned transfer to the Local Housing Trust Fund, staffing changes within the City Administrator’s Office, potential revisions to the City’s reserve policy, and the approach to restructuring solid waste in place collection fees to comply with Proposition 218. Staff have provided analysis on these topics to inform Council’s final decisions.

The report also outlines a recommended amendment to the UUT ordinance, originally established to dedicate 50% of UUT revenue to street maintenance. As additional long term revenue sources—such as Measure A and Measure C—have become available to fund street needs, staff propose modernizing the ordinance to allow future Councils flexibility in allocating UUT funds as part of the annual budget process.

The FY2027 Recommended Budget initially reflects a small General Fund operating surplus; however, after meeting required reserve levels, the budget shows a deficit of approximately $3.4 Million. Adoption of all staff-recommended adjustments would modestly improve the City’s operating position but would not eliminate the need for continued fiscal discipline and careful prioritization.

Discussion:

On April 21, 2026, the City Administrator presented her FY2027 Recommended Operating and Capital Budget to the City Council. Council heard from staff regarding Departmental budgets and priorities for the next fiscal year, resulting in both staff recommended adjustments and Council requested changes. Those actions are summarized in the report below, and staff are seeking final direction from Council to obtain Council’s adoption of the FY2027 budget during the regular City Council meeting scheduled on June 16, 2026.

With the completion of staff presentations as well as additional direction provided by Council at the budget workshop on April 9, 2026, staff are seeking final direction from Council during this deliberation meeting prior to adoption scheduled for June 16, 2026.

The items discussed below will be included in the staff report for Council to consider in their deliberations.

Staff Recommended Budget Adjustments
The table below summarizes the impact on each fund. Debits increase expenditures and decrease revenues while credits decrease expenditures and increase revenues. Amounts below show the net effect to each fund.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

FUND FY2027 DEBIT / (CREDIT)
Capital Outlay Fund ($24,827)
Creeks Fund $134,390
Energy & Climate Management Fund $167
Fleet Replacement Fund $102,990
General Fund ($126,845)
Golf Fund $2,607
Information Technology Fund $23
Self Insurance Fund $1,090,572
Streets Fund ($1,999,885)
Waterfront Operating Fund $5,781
 Recommended changes in the Capital Outlay Fund include a clerical adjustment to properly reflect expected revenue.
 Recommended changes in the Creeks Fund include a transfer to support a GIS Tech position in the Information Technology Department.  Recommended changes in the Energy & Climate Fund include a clerical adjustment to properly reflect expected revenue.
 Recommended changes in the Fleet Replacement Fund include removing revenue that appeared on two lines and was therefore double counted.  Recommended changes in the General Fund include changes in the City Administrator’s Office, Library, Mayor & City Council, Parks & Recreation, Police Department, Sustainability & Resilience, and Non-Departmental Fund Revenue and Expenditures as noted in the table below.
 Recommended changes in the Golf fund include adjustment to position allocation between Golf and the General Fund.
 Recommended changes in the Information Technology Funds include adding a GIS Tech position and supporting transfers of funding from the Sustainability & Resilience Department to support that position, and clerical corrections.  Recommended changes in the Self Insurance Fund include a decrease in revenue for Workers’ Compensation that was accounted for elsewhere.  Recommended changes in the Streets Fund include a $2 Million transfer from Measure C Fund to close the funding gap from the Utility User Tax transfer to the General Fund and $115 in clerical corrections.
 Recommended changes in the Waterfront Operating Fund include correction for payment to Parks & Recreation for Beach Lifeguard safety, clerical corrections for allocations to Information Technology, and other clerical corrections.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

The table below summarizes the impact on each General Fund department. Debits increase expenditures and decrease revenues while credits decrease expenditures and increase revenues. Amounts below show the net effect to each fund.

DEPARTMENT FY2027 DEBIT / (CREDIT)
City Administrator $8
Library $197,762
Mayor & City Council $24,248
Parks & Recreation ($2,607)
Police ($51,230)
Sustainability & Resilience ($341)
Non-Departmental Revenue ($294,686)
Net Effect on General Fund ($126,845)
 Recommended changes in the City Administrator’s Office include clerical corrections for rounding and miscellaneous Information Technology allocations.  Recommended changes in the Library include reversing a reduction in salary and benefits previously paid by the Miscellaneous Grants Fund. The position is now paid by Sustainability & Resilience and is properly budgeted with this adjustment.  Recommended changes in the Mayor & City Council include a 4.68% increase to salaries as required by City Charter with change with CPI.  Recommended changes in Parks & Recreation include adjustment for adjustment to position allocation between Golf and the General Fund.  Recommended changes in Police include clerical correction for a typo in benefits.  Recommended changes in Sustainability & Resilience include a reimbursement to Public Works Environmental Services previously not included.  Recommended changes to Non-Departmental Expenditures include removing a transfer to Downtown Parking that was made in previous years but is no longer necessary with the reorganization of Downtown Services to the City Administrator’s Office.

Additionally, staff recommends changes to the proposed Fee Schedule for FY2027. The Waterfront Department held a Commission meeting on April 16, 2026, which did not allow time to include the Commission’s direction in the published redline version of the proposed Fee Schedule for FY2027. Changes proposed subsequently to this meeting are included in Attachment 2.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

Questions Raised by City Council During the Budget Review Process On May 12 and 19, 2026, the City Council received presentations from all City departments providing details on the respective recommended budgets. Council members expressed interest in further discussions of the following items:
 Deferring an additional $1.0 Million transfer from General Fund Reserves to the Local Housing Trust Fund (LHTF) above and beyond the $1.0 Million deferral in the recommended budget.
 Not deferring any transfers from the General Fund Reserves to the LHTF, which would keep the previously recommended $2.0 Million transfer intact.  Consider not reclassifying the Senior Assistant to the City Administrator to the Local Government Management Fellow position and consider an Office Manager position to support the Mayor and Council Members.
 Consider revisions to the General Fund Reserve Policy to be more in line with actual reserve levels.
 Extend the FARO Center lease from February 2027 to June 2027.  Better understand the impacts of the three-year smoothing vs. the one-year true up for Solid Waste Fees.
 Schedule a future Finance Committee meeting to clarify and further define the prioritization of reserve use during an emergency or disaster.

Defer an additional $1 Million transfer from General Fund Reserves to the LHTF
The FY2026-2027 Adopted Financial Plan called for the transfer of $2.0 Million of General Fund reserves into the LHTF in FY2027. The City Administrator’s Recommended Budget for FY2027 calls for reducing this transfer from $2.0 Million to $1.0 Million as a strategy to reduce the need to use reserves to balance the budget. The City Council may defer this entire $2.0 Million transfer in FY2027 when the budget is adopted. The Housing Authority can approach staff in FY2027 when they have a project that is ready to receive funds, and the City Council can take an action, at that time, to appropriate the transfer of General Fund reserves into the LHTF.

Not deferring any transfers from General Fund Reserves to the LHTF The FY2026-2027 Adopted Financial Plan called for the transfer of $2.0 Million of General Fund reserves into the LHTF in FY2027. The City Administrator’s Recommended Budget for FY2027 calls for reducing this transfer from $2.0 Million to $1.0 Million as a strategy to reduce the need to use reserves to balance the budget. Council has expressed an interest in reinstating the full $2.0 Million transfer from General Fund Reserves to the LHTF.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

Reclassification of the Senior Assistant to the City Administrator the Local Government Management Fellow position and consider an Office Manager position to support the Mayor and Council Members
In order to accommodate workload and support various priority initiatives, the City Administrator’s Office proposes a Local Government Management Fellow, which would be funded by savings from eliminating the vacant Senior Assistant to the City Administrator position, for a net savings of $67,408 in FY2027.

The City Council can direct staff to either proceed with the reclassification proposed that would create the Local Government Management Fellow position or to keep the Senior Assistant to the City Administrator position vacant for the foreseeable future. Staff does not recommend adding any new positions to the City Administrator’s Office or Mayor and Council office during this budget given the current financial challenges facing the General Fund. Any changes to the duties of the current Executive Assistant position within the Mayor and Council office would be subject to the City’s Personnel Rules and the Charter provisions in Section 607 that gives the City Administrator purview over the administrative service and personnel of the City. This would occur outside of the budget process and if a future reclassification is warranted, this would be presented to Council for approval at a future date and not as a part of the budget adoption.

Changes to staffing in City Administrator’s Office can be found in Attachment 3.

Reserve Policy
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 to continue to provide services to the public.

The City’s reserve policy sets reserve amounts for disaster and contingency reserves as well as lays 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 the fiscal impacts of unexpected events, such as an unexpected loss of funding and damage to a City facility, among other events. The reserve policy of 25% of expenditures is a combination of the contingency and disaster reserves.

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.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

The City Council can direct staff to schedule a Finance Committee meeting to clarify and further define the prioritization of reserve use during an emergency or disaster.

The City Council adopted reserve policy can be found on the City’s website here.

Extend FARO Center Lease
The City Administrator’s Recommended budget for FY2027 includes adequate funding for the operation of the FARO Center through the end of February 2027. Council provided feedback during the budget hearings regarding ensuring adequate funding for the lease agreement through June 2027. The cost associated with the extension is $167,000, with potential to be funded through California Permanent Local Housing Allocation (PLHA), General Fund (Measure I) or Measure C.

Solid Waste Fees
The City has long offered in-place solid waste collection, included in the now retired “can service” or as an elective premium paid service with curbside cart service. The preexisting flat fee for elective in-place cart service, however, does not fully recover the City’s costs to compensate MarBorg for providing this service, resulting in an unfunded obligation.

Under Proposition 218, the costs of elective services must be recovered through fees or the General Fund, customers receiving the same service must be charged equally, and non-elective rate revenues may not subsidize elective services. As a result, the City must revise the in-place service fee from a flat fee to a per-cart fee that reflects the full cost of providing the service.

The Sustainability Council Committee considered two options: setting the fee to fully recover the cost of service in FY2027 without using reserves, or phasing in the increase over three years with a $900,000 reserve offset. In a 2-1 vote, the Committee directed staff to prepare the proposed fee schedule using the three-year smoothing option and reserve funding. All funding is included in the FY2027 budget for the Solid Waste Fund.

Staff have determined, based on advice from the City Attorney’s office, that the in-place service fee must be revised to comply with cost of service principles required under the California Constitution articles XIIIC and XIID (Propositions 218 and 26). The current flat rate for in-place service does not reflect the cost of providing that service, thus shifting a portion of those costs to regular residential service customers. Also, the flat rate does not account for difference among customers requesting in-place service based on different number of carts. Using the recommended per-cart fee for in-place services will recover the costs and ensure that each in-service customer pays equitably for the services they receive.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

Utility Service Tax Ordinance Amendment
The City Administrator’s Recommended Budget for FY2027 includes a reallocation of Utility User Tax (UUT).

Background
The City adopted Ordinance No. 3927 on October 18, 1977, providing for a tax on utility services. Section 4.24.190 states that 50% of the revenues imposed and collected be appropriated and used for street construction, maintenance, and/or repair for a set period of time. On September 4, 1984, Section 1.24.190 was amended to have that split be ongoing. At the time, the City needed a dedicated funding source to support street maintenance and repair.

Since that time, other sources to support street construction, maintenance, and/or repair have come into play. These include including Measure A (half-cent County Sales Tax, 2010 through 2040), and Measure C (one-cent City Sales Tax implemented in 2018 with no planned sunset). These alternate funding sources have alleviated the need to dedicate a full 50% of UUT revenues for streets-related projects and makes funding available for other City services in the General Fund
Staff proposes amending Section 4.24.190 to allow Council to determine allocation of UUT revenues for expenditure during the annual budget process.

Budget/Financial Information:

The City Administrator’s Recommended Budget for FY2027 has a small surplus of approximately $215,000 in the General Fund before adjustments to meet the required reserve targets. After reserve targets have been met, the result is a deficit of $3.4 Million in FY2027.

If the City Council approves all staff recommended adjustments, the General Fund will have an operating surplus of approximately $342,000, with a deficit of $3.3 Million after adjustments to meet the required reserve targets.

The City Council may choose not to approve of the staff recommended fee and other changes to the recommended budget. Fee reductions would likely reduce budgeted revenues; alternatively, fee increases would likely increase budgeted revenues.

Sustainability Impact:

Producing and making the City’s budget publicly available using the online budget tool is in line with the greater sustainability and resilience goals of the City through leveraging technology to disseminate information to a broad audience and minimizing the use of paper and other materials.

Council Agenda Report
Fiscal Year (FY) 2027 Operating and Capital Budget Deliberations [Ordinance Introduction] June 9, 2026

Attachments:

1. Schedule of Staff Recommended Adjustments

2. Proposed changes to the City Administrator’s Recommended Fee Schedule

3. City Administrator’s Office Position Changes

4. Draft Resolution to come back into compliance with Resolution 23-124 Prepared By: Natalija Glusac, Budget Manager
Submitted By: Keith DeMartini, Finance Director
Approved By: Kelly McAdoo, City Administrator
OPERATING & CAPITAL BUDGET ATTACHMENT 1
FISCAL YEAR 2027

STAFF RECOMMENDED ADJUSTMENTS

GENERAL FUND
Departments
City Administrator's Office 8 Clerical corrections for rounding and miscellaneous line items in IT Allocations.

Library 84,742
Library 15,678
Library 9,482
Library 1,222
Library 21,186
Library 3,919
Library 2,371
Library 59,162 4% reduction to per capita fee for all Counties Mayor & City Council 21,528
Mayor & City Council 2,408
Mayor & City Council 312
Non-Department
(294,686)
Removing expense line that previously transferred funds from general fund to Downtown Parking.

Transfer line budget no longer necessary.

Parks & Recreation (1,835)
Parks & Recreation (539)
Parks & Recreation (205)
Parks & Recreation (28)
Public Safety - Police (54,230) Decrease in police benefits/workers comp line to align with SIF Allocation. Clerical error.

Public Safety - Police
3,000
Increase in police benefits/workers comp due to a shift from program 3446 tp 3441. To correct for typo.

Sustainability & Resilience
(341)
Streets Fund reimbursement to Public Works Environmental Services. Corresponding expenditures previously adjusted. Correction for clerical error.

SPECIAL REVENUE FUNDS Debit/(Credit) Adjustment
Departments Debit/(Credit) Adjustment
Community Development -
General Fund Capital (24,827)
Expenditure was adjusted at midyear, but corresponding revenue was not. Increase to correctly budget expected revenue.

Public Works - Streets 115 Clerical correction.

Public Works - Streets (2,000,000) Transfer from Measure C Fund to compensate for loss of Utility User Tax.

Sustainability & Resilience -
Creeks 134,390
Sustainability and Resilience will be paying for the additional GIS Tech position in IT. This is a transfer of that money to IT
INTERNAL SERVICE FUNDS Debit/(Credit) Adjustment
Departments Debit/(Credit) Adjustment
Finance - Self Insurance
361,744
Decrease for Workers' Comp premium revenue received into Self Insurance Fund (SIF) from departments as part of allocated costs. The amount for Office of Safety and Health was double counted.

Finance - Self Insurance
728,828
The mid-year revenue increase was posted in error. The amount matches the Employment Claims total in the SIF file, which is under Workers Compensation, and should not be in Liability, as it is doubling the amount. This adjustment reverses the previous adjustment and balances the accounts.

Information Technology 101,270
Information Technology 19,597
Information Technology 12,055
Information Technology 1,468
Information Technology
(134,390)
Sustainability and Resilience will be paying for the additional GIS Tech position in IT. This is a transfer of that money to IT
Information Technology (4)
Information Technology 24
Information Technology 3
Public Works - Fleet
102,990
Decrease in revenues to reverse erroneous mid-year adjustment carried into the proposed budget.

The revenue is accounted for under a different line item and was therefore double counted.

Sustainability & Resilience -
Climate & Energy Management
167
Expenditure was adjusted at midyear, but corresponding revenue was not. Increasae to correctly budget expected revenue.

ENTERPRISE & OTHER FUNDS
Departments
Parks & Recreation - Golf 1,835
Parks & Recreation - Golf 539
Parks & Recreation - Golf 205
Parks & Recreation - Golf 28
Waterfront
344
Beach Lifeguard Safety payment to Parks and Recreation. Corresponding revenue previously adjusted. Correction for clerical error.

Waterfront 69
Waterfront 432
Waterfront 135
Waterfront 276
Waterfront 217
Waterfront 217
Waterfront 217
Waterfront 3,346
Waterfront 2,129
Waterfront (502)
Waterfront (1,871)
Waterfront (523)
Waterfront (1,784)
Waterfront (75)
Waterfront 1,272
Waterfront 1,906
Waterfront (26)
Adjust for position reallocation between Golf Fund and General Fund (net zero overall) Clerical corrections for rounding and miscellaneous line items in IT Allocations.

Clerical corrections for misentry.

Adding GIS Tech position
Clerical corrections for rounding and miscellaneous line items in IT Allocations.

Comment
Comment
Comment
Comment
Reverse reduction in salary and benefits due to clerical error. Position was previously paid by Misc.

Grant Fund, but is now paid directly out of General Fund and reimbursed by Sustainability and Resilience. Sustainability and Resilience and General Fund correctly have reimbursement lines in the budget.

4.68% Adjustment to Mayor & Council salary (tied to CPI, published in May) Adjust for position reallocation between Golf Fund and General Fund (net zero overall) FY 2027 Adjustment

DR/(CR)
FY 2027 Adjustment

DR/(CR)

WATERFRONT HARBOR SLIP, MOORING, AND USER FEES - SUMMARY OF STAFF RECOMMENDED ADJUSTMENTS Item Original Value New Value Staff Proposed Change Added Language 20' Slip Transfer Fee 150 140 Decreased by $10
25' Slip Transfer Fee 175 195 Increased by $20
28' Slip Transfer Fee 225 220 Decreased by $5
30' Slip Transfer Fee 300 305 Increased by $5
40'/43'/45' Slip Transfer Fee 775 770 Decreased by $5
>60' Slip Transfer Fee 1275 1265 Decreased by $10
20' Commercial Fishing Slip 62.5 70 Increased by $7.50
25' Commercial Fishing Slip 87.5 82.5 Decreased by $5
28' Commercial Fishing Slip 100 110 Increased by $10
30' Commercial Fishing Slip 137.5 152.5 Increased by $15 35' Commercial Fishing Slip 237.5 262.5 Increased by $25 40'/43'/45' Commercial Fishing Slip 350 385 Increased by $35 50'/51' Commercial Fishing Slip 500 550 Increased by $50 >60' Commercial Fishing Slip 575 632.5 Increased by $57.50 Marine Center Classroom Rentals Added language
Use of Waterfront meeting rooms by other City Departments or Non-Profit Ocean Dependent Organizations will be charged at rates noted above unless expressively waived by the Waterfront Director or designee.

Waterfront Community Meeting Room
Rentals Added language
Use of Waterfront meeting rooms by other City Departments or Non-Profit Ocean Dependent Organizations will be charged at rates noted above unless expressively waived by the Waterfront Director or designee.

Waterfront Parking Lot - La Playa East
and La Playa West Lots Maximum Charge of $20
Language added to include
a maximum charge
Waterfront Parking Lot - Cabrillo East,
Cabrillo West, Harbor West, Garden
Street, Leadbetter, Harbor Valet Lot,
and Palm Park Maximum Charge of $20
Language added to include
a maximum charge
Harbor Parking Lot Max Fee (24 hrs) 42 20 Decreased by $22 Waterfront Parking Lot Added language
The fee for an optional Automatic Vehicle Identification (AVI) Tag for Annual Parking Permit holders shall be $50.00.

Pay-by-Plate Wording Vehicles only Vehicles + Trailers Clarified wording Ticket Surrender Explanation Short description Expanded explanation Clarified wording Stearns Wharf Cross-Reference Section C 1(b) Section B 1(b) Corrected reference 1 ATTACHMENT 2
2 WATERFRONT HARBOR SLIP, MOORING, AND USER FEES
Fees for the privilege of mooring, anchoring, or tying up vessels in any part of the Harbor or for using City Harbor facilities or services identified herein shall be as follows:

Commercial Fishing Berths FY 2027 (Per foot)
Designated Commercial Fishing Slips $7.95
Skiff Row (Max length 15', Beam 6') FY2027 Fee
Annual $300
Monthly $50
Daily $15
Mooring Permit Permittee No Charge
Mooring Permit Fees FY2027 Fee
Annual (Tackle Gear Not Included) $400
Monthly $500
Weekly $200
Nightly $30
Marina Berths FY2027 Fee (Per foot)
20' slips $13.70
25' slips $14.30
28' slips $14.70
30' slips $15.00
35' slips $15.65
40' slips $16.65
43' slips $17.05
45' slips $17.30
50' slips $19.55
60' slips $21.25
70' slips $23.05
80' slips $25.00
90' slips $27.15
100' slips $29.45
Slip Permit Waiting List FY2027 Fee
Annual Waitlist Placement Fee $100
Visitor Vessel FY2027 Fee
<65' length overall $2.00 per foot/ plus utilities
>65' length overall $4.00 per foot/ plus utilities
After 14 cumulative nights Above rates x 2 /plus utilities Commercial fishing vessels $1.00 per foot/ plus utilities Visiting Vessel Over 28 Day Cumulative Night
Penalty
FY2027 Fee
<35' Vessels $100 per night
35' to 50' Vessels $150 per night
50' to 65' Vessels $200 per night
3 >65' Vessels $250 per night
Reservations FY2027 Fee
Non-Refundable Fee Per Vessel
$50 In addition to Visitor Vessel Fees
Delinquent Payments FY2027 Fee
Late Monthly Slip or Mooring Permittee $50 per month
Visitor Vessel or Mooring $15 per night
Visitor Vessel or Mooring Leaving w/o Paying Fees x 2 amount owed Vessel Impound Fee $250
Daily Storage (Impound) Applicable Daily Visitor Slip Rate Tie-Up on Stearns Wharf FY2027 Fee
Commercial Use Only $15 per passenger
Administrative FY2027 Fee
New Vessel to Slip Permit or Add Spouse
Application
$100
Slip Permit Exchange (Slips <5' in length) $100
Slip Permit Exchange (Slips >5' in length) Slip Permit Transfer Fees Apply Business Activity Permit (BAP) FY2027 Fee
Annual Service BAP $50
Annual Boat Charter and Kayak BAP $500
BAP Expiration Beyond 30 Days $35
Slip Permit Transfer FY2027 Fee (per foot)
20' Slips $140
25' Slips $195
28' Slips $220
30" Slips $305
35' Slips $525
40', 43', 45' Slips $770
50' and 51' Slips $1,100
>60' Slips $1,265
Designated Commercial Fishing Slip Transfer FY2027 Fee (per foot) 20' Slips $70
25' Slips $82.50
28' Slips $110
30" Slips $152.50
35' Slips $262.50
40', 43', 45' Slips $385
50' and 51' Slips $550
>60' Slips $632.50
Slip Permit Waiting List Transfer Fee FY2027 Fee (per foot) 20' Year 1 $300
20' Year 2 $270
20' Year 3 $240
20' Year 4 $210
20' Year 5 $180
Deleted: 150
Deleted: 175
Deleted: 225
Deleted: 300
Deleted: 775
Deleted: 1,275
Deleted: 62.50
Deleted: 87.50
Deleted: 00
Deleted: 137.50
Deleted: 237.50
Deleted: 350
Deleted: 500
Deleted: 575
4 25' Year 1 $350
25' Year 2 $315
25' Year 3 $280
25 Year 4 $245
25' Year 5 $210
28' Year 1
28' Year 2
28' Year 3
28’ Year 4
28' Year 5
$450
$405
$360
$315
$270
30' Year 1 $600
30' Year 2 $540
30' Year 3 $480
30 Year 4 $420
30' Year 5 $360
35' Year 1 $1,050
35' Year 2 $945
35' Year 3 $840
35 Year 4 $735
35' Year 5 $630
40', 43', 45' Year 1 $1,550
40', 43', 45' Year 2 $1,395
40', 43', 45' Year 3 $1,240
40', 43', 45' Year 4 $1,085
40', 43', 45' Year 5 $930
50', 51' Year 1 $2,200
50', 51' Year 2 $1,980
50', 51' Year 3 $1,760
50', 51' Year 4 $1,540
50', 51' Year 5 $1,320
>60' Year 1 $2,550
>60' Year 2 $2,295
>60' Year 3 $2,040
>60' Year 4 $1,785
>60' Year 5 $1,530
Gate Keys FY2027 Fee
First 4 Key Card Style Keys or; $20 Each
First 4 Fob-Style Keys $25 Each
Any additional keys card or fob style $100 Each
Replacement Key (non-operational <1 Year) No Charge
New Slip Permit Transfer/1 Key No Charge
Beach Permits- Seasonal FY2027 Fee
Catamaran Leadbetter Beach Permit $400 Annual per Vessel Individual Outrigger, Sailboat, Rowing Dory, and
Surf Ski West Beach Permit
$400 Annual
$40 Monthly
Storage Outrigger Canoe Club Rack $2,200 Annual
SB Youth Foundation Racks $2,200 Annual
5 Chumash Tomol Canoe No Charge
Unpermitted Vessel Daily Fee $50
Wharfage and Dockage FY2027 Fee
City Pier for purpose of vessel repair or supply $.50 per linear foot Hoists One and Three $.50 per 10 Minutes
Hoist Two $.50 per 10 Minutes
Hoist Four/Stiff-Leg $.75 per 10 Minutes
Non-Emergency Harbor Patrol Services FY2027 Fee
Rate to be administered based on current
Waterfront hourly service rates for labor and
equipment
Use of Waterfront for Commercial Activity FY2027 Fee
Waterfront Workforce Support or Control Based on Established Hourly or Salary Rates Commercial Displays or Demonstrations $500 per day plus 20% of gross sales Aquatic Activity or Exhibit $100 per day
Commercial classes, activities, or educational
programs- 3 hours Max per Day
$50 Per Day
Harbor & Seafood Festival Food Vendor per Space
with Electricity
Up to $225 plus EHS Fee
Harbor & Seafood Festival Food Vendor per Space
without Electricity
Up to $200 plus EHS Fee
Harbor & Seafood Festival Craft Vendor per Space
with Electricity
Up to $225
Harbor & Seafood Festival Craft Vendor per Space
without Electricity
Up to $200
Film & Photo Permits FY2027 Fee
Still Photography:

Crew of less than 15 people $100/day
Crew of 15-25 $200/day
Crew over 25 people $201-$500/day (depending on size and facility impact)
Feature Films & Television Productions:

Crew of less than 15 people $250/day
Crew of 15-25 $500/day
Crew over 25 people $750-$1,000/day (depending on size and facility impact)
Student Film or Still Photoshoot $0
Use of Waterfront Facility for Private NonCommercial ActivityFY2027 Fee Private Events- Corporate and Individual, in
Waterfront Facilities (Harbor or Stearns Wharf) 2
hour minimum
Capacity up to 50 people : $108 per hour
Capacity up to 150 people: $143 per hour
Special Events at Stearns Wharf FY2027 Fee
Seaward Finger Areas A or B & Shoreward Finger:
10-Hour Package Rate
Hourly Rate Over Initial 10 Hrs. (12 Hr. Maximum)
$5,526
$417/Hour
Additional Fees:

Down Payment (Required and Non-Refundable) $1,000
$1,000
6 Security Deposit (Required and Refundable When
Contract and Conditions Are Followed)
Cleaning Fee
Event Monitor
$186
$170
Cruise Ship Visits FY2027 Fee
Embarking/Debarking of Cruise Ship Passengers $15 per passenger <500 Cruise Ship Passengers $7,500 per visit
Cruise Ship Cancellation (31 Days or More Prior to
Call)
No Charge
Cruise Ship Cancellation (15-30 Days Prior to Call) $2,500 Cruise Ship Cancellation (14 Days or Less Prior to
Call for Ships with a passenger capacity of 1,000
or less passengers)
$6,500
Cruise Ship Cancellation (14 Days or Less Prior to
Call for Ships with a passenger capacity of 1,001
to 2,000 passengers)
$7,500
Cruise Ship Cancellation (14 Days or Less Prior to
Call for Ships with a passenger capacity of 2,001
or more passengers)
$9,500
Printed Pages FY2027 Fee
Harbor Patrol Incident Reports, Leases, Permits
and other miscellaneous documents
$.20 per page
Live Aboard Permits FY2027 Fee
Monthly $143
Annual Inclusion and Maintenance of Live-Aboard
Wait List
$50
Bike Locker Storage [Live-Aboards Only] FY2027 Fee
Annual Bike Storage Locker $150
Monthly Prorated Fee $20
Annual Inclusion and Maintenance of Bike Locker
Wait List
$50
Electrical Marina Submetering FY2027 Fee
Monthly $0.20 per KWh per vessel
Fresh Water and Ice for Vessels FY2027 Fee
Water $15.50 per thousand gallons, w/ Wharfage
Water Minimum Charge $15.50
Ice $.20 per LB. 200 LB minimum
Return Checks for NSF or Other FY2027 Fee
$25
Marine Center Classroom Rentals FY2027 Fee
Commercial and/or Private Non-Ocean
Dependent Uses in Marine Center Classroom
$75 per hour or any part of, or $500 per day
maximum
Commercial and/or Private Ocean Dependent
Uses in Marine Center Classroom
$30 per hour or any part of, or $150 per day
maximum
7 Non-Profit Ocean Dependent Organization with
Ocean Dependent Use in Marine Center
Classroom
Up to $10 per hour or any part of, or $50 per
day maximum. (Fee waiver available for ocean
educational courses.)
Meeting Room Refundable Cleanup Deposit $100
Meeting Room Cleanup Cost in Excess of Security
Deposit
$65 per hour
Use of Waterfront meeting rooms by other City Departments or Non-Profit Ocean Dependent Organizations will be charged at rates noted above unless expressively waived by the Waterfront Director or designee.

Waterfront Community Meeting Room Rentals FY2027 Fee
Commercial and/or Private Non-Ocean
Dependent Uses in Waterfront Center
Community Meeting Room
$60 per hour or any part of, or $300 per day
maximum
Commercial and/or Private Ocean Dependent
Uses in Marine Center Classroom
$25 per hour or any part of, or $100 per day
maximum
Non-Profit Ocean Dependent Organization with
Ocean Dependent Use in Waterfront Center
Community Meeting Room
Up to $5 per hour or any part of, or $20 per
day maximum. (Fee waiver available for ocean
educational courses.)
Meeting Room Refundable Cleanup Deposit $100
Meeting Room Cleanup Cost in Excess of Security
Deposit
$65 per hour
Use of Waterfront meeting rooms by other City Departments or Non-Profit Ocean Dependent Organizations will be charged at rates noted above unless expressively waived by the Waterfront Director or designee.
8 WATERFRONT PARKING FEES AND HOURS OF OPERATION
Santa Barbara Municipal Code Section 10.44.152 provides for the establishment of fees in municipally owned parking lots, and the Board of Harbor Commissioners of the City of Santa Barbara has recommended adoption of the fees charged for Waterfront Parking as set forth below.

A. PARKING FEES AND HOURS OF OPERATION IN THE WATERFRONT AREA

PARKING LOTS

1. Fees for parking in the La Playa East and La Playa West Lots shall be $3.50 per hour with a maximum charge of $20.00 per vehicle during one day’s hours of operation. Dates and Hours of operation are subject to the conditions of the Joint Powers Agreement between the City and Santa Barbara City College.

2. Fees for parking at the Cabrillo East, Cabrillo West, Harbor West, Garden Street, Leadbetter, Harbor Valet Lot, and Palm Park Parking Lots shall be $3.50 per hour with a maximum charge of $20.00 per vehicle during one day’s hours of operation. Hours of operation for all Waterfront Area Parking Lots including Stearns Wharf from 8:00 a.m. to 10:00 p.m. daily, including weekends and holidays.
3 The fee for parking at the Harbor Parking Lot shall be $3.50 per hour with a maximum charge of $20.00 per vehicle per 24 hours of parking. Hours of operation are 24 hours per day, year-round.

4. The City Administrator or his/her designee may make minor adjustments to fee collection, hours of enforcement, and operation for efficient administration and may change enforcement and collection when inclement weather, emergencies, or special events so dictate.

5. Annual parking permits exempting permit holders from hourly parking fees at all Waterfront Parking Lots, except Stearns Wharf and Harbor Valet Lot, shall be available to the general public at a rate of $165.00 per calendar year. Annual parking permits shall only be issued for vehicles not exceeding the size limitations set forth in Chapter 17.36 of the Municipal Code. The City Administrator or his/her designee may grant written waivers to the vehicle size limitation provided in Chapter 17.36 of the Municipal Code for Deleted: 42
9 parking in the Harbor Parking Lot, based on ocean-related or oceandependent priority need. Vehicle owners granted a waiver must purchase one ocean dependent parking permit equal in cost to one general parking permit or one slip permittee annual parking permit plus a $50.00 Oversized Vehicle fee.

6. Parking permits exempting Harbor slip permittees from parking fees shall be available at $165.00 per calendar year with a limit of one parking permit per slip permit. All slip permittee parking permits issued under this section shall require proof of California vehicle registration in slip permittee’s name prior to issuance.

7. The fee for an optional Automatic Vehicle Identification (AVI) Tag for Annual Parking Permit holders shall be $50.00.

8. In the event a parking permit decal is lost, stolen, or damaged, a $20.00 replacement permit fee will be charged per occurrence.

9. The charge for boat trailers using the launch ramp shall be $3.50 per hour with a maximum charge per trailer of $8.00 per 24 hours of parking. Such charges shall be in addition to charges applied to the towing vehicle.

10. A wash-down fee of $1.00 for 5 minutes will be charged at the launch ramp.

11. The charge for a boat trailer exiting a parking lot without a time dated parking ticket shall be $32.00 (four times the maximum daily boat trailer charge).

12. Fee for failure to surrender an entrance ticket upon exiting the Harbor Parking Lot shall be $60 per occurrence, which reflects the equivalent cost of a 72-hour parking session. This charge is intended to account for the inability to verify the duration of the parking stay and to reasonably approximate the potential maximum parking fee when a ticket is not surrendered.

13. An entry fee not to exceed $25.00 may be charged under special circumstances or for special events where it is anticipated that charging on entry will be more efficient than collecting the fee on exit. The Waterfront Director is authorized to make the determination.

14. Fees for an oversized vehicle parking in Leadbetter, Harbor West, Garden Street, or the Palm Park lot shall be double the normal parking fee charged for regular sized vehicles in those lots.

B. STEARNS WHARF PARKING FEES

1. Stearns Wharf Parking Fees
Deleted: 7
Deleted: 8
Deleted: 9
Deleted: 10
Deleted: 11
Deleted: Fee for failure to surrender entrance
ticket upon exiting shall be $126 per occurrence at
the Harbor Parking Lot, equivalent to a 72-hour
parking session.

Deleted: 12
Deleted: 13
10 a. 90 Minutes of free parking upon entry onto Stearns Wharf per one day’s hours of operation. After the 90-minute free parking period, fees of $4.00 per hour or part of an hour are applicable as stated in Section B 1. Paragraph (b). Persons with disabilities who display valid disabled placards or plates will receive 90 minutes of free parking. After the 90 minutes free parking period, fees of $4.00 per hour or part of an hour are applicable.
b. The rate for parking a motor vehicle on Stearns Wharf shall be $4.00 per hour or fraction thereof with a maximum charge of $40.00 per vehicle during one day’s hours of operation.
c. Fee for failure to surrender entrance ticket upon exiting shall be $60.00 per occurrence at Stearns Wharf.

C. ALL PARKING LOTS

1. All vehicles must park within the boundaries of marked parking stalls.

Vehicles parked horizontally, diagonally, or across existing marked parking stalls shall be subject to citation.

2. The owner or operator of a vehicle or boat trailer parked in a Waterfront Parking Lot operated by a Pay by Plate or Pay by Space Parking Management System must purchase a daily parking permit per fees required in Waterfront Parking Lots. Any owner or operator of a vehicle or boat trailer who fails to purchase a valid daily parking permit shall pay a penalty as follows:
a. Vehicles not exceeding size limitations as set forth in Santa Barbara Municipal Code 17.36 shall be charged $60.00 per violation. b. Oversized vehicle exceeding the size limitations as set forth in Santa Barbara Municipal Code 17.36 shall be charged $84.00 per violation. c. Boat trailers parked in the Harbor Launch Ramp Lot shall be charged $60 per violation per 72-hour period.

3. The fee to reserve parking stalls for Special Events shall be $25.00 per parking stall, per day in all Waterfront parking lots, except Stearns Wharf where the fee shall be $45.00 per parking stall, per day. A $300.00 refundable clean-up deposit shall be required for all caterer vehicles and equipment operating in a Waterfront Parking Lot. Approval of an Event parking reservation is at the sole discretion of the Waterfront Director.

Additional information regarding Events can be found in the Department’s Event Parking Reservation General Guidelines & Policy.

Deleted: C
11 OPERATING & CAPITAL BUDGET ATTACHMENT 3
FISCAL YEAR 2027CITY ADMINISTRATOR STAFF CHANGES
General Fund Creeks Fund Local Housing Trust
Fund
Downtown Parking
Fund
Delete Parking Supervisor ($162,544) ($162,544)Add Admin Analyst III $92,973 $92,973 $185,945 Delete Project Planner ($165,810) ($165,810) Add Electronic Tech (Overhire) $117,223 $117,223 Delete Sr. Assitant to City Admin ($227,408) ($227,408)Add Local Government Management Fellow $160,000 $160,000
Delete Comm Dev Program
Specialist ($85,000) ($85,000)
Reallocate Deputy City Admin ($80,538) $25,626 $54,912 - Reallocate Admin Analyst III (Development Liaison) ($50,000) $50,000 -
Net Effect ($355,784) $50,000 $35,626 $105,564 ($177,594) Funding Source
Action Position Net Effect
Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA APPROVING THE PLAN TO REPLENISH RESERVES AS
REQUIRED BY RESOLUTION NO. 23-124, THE POLICIES FOR

RESERVES
WHEREAS, the City has established 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, General Fund actual reserve balances are below the target specified in the reserve policy;
WHEREAS, the Operating and Capital Budget for Fiscal Year (FY) 2027 includes a $3.4 Million use of reserves;
WHEREAS, contingency reserves are intended to be used for unexpected events or situations;
WHEREAS, disaster reserves are restricted for use in addressing 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 of significant reduction of normal operating revenues;
WHEREAS, any use of reserves is recommended to include an assessment of the fiscal condition and outlook of the fund’s fiscal condition and an evaluation of the impacts of the events that triggered the need to use reserves, a balancing strategy to minimize the use of reserves including expenditure reductions and revenue enhancements, and plan to replenish reserves; and
WHEREAS, the replenishment plan should include a strategy for how reserves are to be restored.

ATTACHMENT 4

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

1. Council has adopted an Operating and Capital Budget for FY2027 that includes uses of General Fund reserves; and

2. Council commits to identifying and implementing, during FY2027, a long-term strategy that includes a plan for how the reserves will be restored. [Council Introduction Draft Showing Changes From Current Code 06/09/2026] Ordinance No.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA AMENDING SANTA BARBARA MUNICIPAL CODE
SECTION 4.24.190 TO ADJUST THE APPROPRIATIONS OF

FUNDS FROM THE UTILITY SERVICES TAX

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

Section 1
Section 4.24.190 of Chapter 4.24 of Title 4 of the Santa Barbara Municipal Code is amended to read as follows:

4.24.190. Appropriation and Use of Funds.
[Deleted] Fifty percent of the revenues imposed and collected under this chapter shall be appropriated and used for street reconstruction maintenance and/or repair. [End Deleted]
[New Language] The revenues imposed and collected under this chapter shall be appropriated during the annual budget as directed by the City Council. [End New Language]
City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: Public Works Department and Office of Housing and Community Vitality
Subject: Support Applying for Grant Match Funds for the State Street Master Plan Project and Update on the Highway 101
Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project [Resolution]
Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing Staff to Apply for Grant Funding for Design, Environmental Review, and Right-of-Way Phases of the State Street Master Plan; B. Approve the City leveraging grant match for Active Transportation Program Cycle 8 grant applications of one percent (up to $1,000,000) for the State Street Master Plan Project;
C. Receive an update from staff on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project and either authorize staff to apply for grant funding or allocate $1,000,000 of funds for Eastside neighborhood improvements; and
D. The title of the ordinance and/or resolution has been read; if there is no objection from any Councilmember present, further reading is waived pursuant to Santa Barbara City Charter § 511.

Executive Summary:

The California Active Transportation Program (ATP) is a statewide funding program that supports projects and plans to increase walking, biking, and other non-motorized transportation to improve safety, public health, and mobility. To date, the City of Santa Barbara (City) has received $94.9 million over the first six grant cycles for critical safety projects and planning efforts to fund critical walking and biking infrastructure in underserved areas of the City.

At Council’s direction in 2024, the City submitted ATP Cycle 7 grant applications for the Lower Eastside Connectivity Action Transportation Plan Implementation Project and Agenda Item No. 13
Council Agenda Report
Support on Applying for Grant Match Funds for the State Street Master Plan Project and Update on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project [Resolution]
June 9, 2026

Castillo Pedestrian and Bicycle Improvements Project (Castillo Undercrossing Project).

The grant applications were not successful due to major State budget cuts to ATP Cycle 7, which significantly reduced the number of awarded projects statewide with that cycle.

The State’s ATP Cycle 8 is now fully funded with $550 million available to the highest scored project applications. On May 12, 2026, Council affirmed its support for the City to submit a grant application for the Castillo Undercrossing Project with a one percent leveraging grant match ($150,000) and directed staff to return with more information on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project (Eastside Overcrossing Project) and the State Street Master Plan Project.

Discussion:

The ATP is a critical funding source for the City’s larger active transportation safety projects. ATP Cycle 8 grant applications are due on June 22, 2026. Below are descriptions of the two projects.

State Street Master Plan Project
The State Street Master Plan (Plan) establishes a long-range, 50-year vision for the 400 through 1300 blocks of State Street, together with adjacent paseos, plazas, parking facilities, and cross streets. The Plan is the product of technical analysis, interdepartmental coordination, and extensive community engagement that reached thousands of residents, businesses, and visitors.

Since 2020, the temporary State Street Promenade has demonstrated measurable safety and quality-of-life benefits, most notably a greater than 50 percent reduction in annual collisions and injuries along the corridor. The Master Plan converts those temporary gains into a permanent framework. At the core of the Plan is a flexible 80-foot right-of-way organized around two 30-foot-wide pedestrian corridors accommodating sidewalk dining, walking, and amenities, and a central 20-foot shared travel lane for cyclists, transit, and service/emergency access. A retractable bollard system at each intersection enables block-by-block control of vehicle access on a predictable, time-based schedule. While use times that include vehicle access will be determined by City Council at a future date, the Master Plan design of State Street allows for adaptive management once the improvements are complete, based on data and experience on the ground. Emergency access will always be preserved.

Three distinct districts — Entertainment (400–600 blocks), Civic and Commercial (700- 900 blocks), and Arts (1000–1300 blocks) — each receive tailored design treatments Council Agenda Report
Support on Applying for Grant Match Funds for the State Street Master Plan Project and Update on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project [Resolution]
June 9, 2026

within a unified corridor framework. The Civic and Commercial District, currently the weakest link in the corridor's activation pattern, is the Master Plan's first-priority investment zone.

Total identified capital investment is in the range of $48 million to $64 million, funded through a diversified strategy combining City capital, state and federal grants, bonds, tax increment financing, property assessments, and private investment.

Staff presented the draft Plan to Council on April 28, 2026, and are in the process of presenting to various commissions and committees before returning to Council later this summer for adoption. The State’s ATP Cycle 8 presents an opportunity to apply for preconstruction phase funding for the design, environmental review, and right-of-way phases. Staff recommends applying for construction funding in a future ATP cycle, or cycles, once there is greater construction cost certainty that will be developed through the design, environmental, and right-of-way phases. Additional funding sources will also be pursued to supplement ATP grant funds and/or to fund elements of the Plan that are ineligible for ATP funding.

Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project
In February 2024, Council adopted the Lower Eastside Community Connectivity Active Transportation Plan (Plan), which studied improving pedestrian and bicycle connectivity between the Lower Eastside and destinations south of Highway 101 (U.S. 101). The Plan resulted in two proposed community-supported projects:

1. Eastside Overcrossing Project

2. Lower Eastside Safety Enhancements Project (Lower Eastside Safety Project) The Eastside Overcrossing Project would construct a pedestrian/cyclist bridge over Highway 101 and the Union Pacific Railroad tracks to connect the Lower Eastside and Waterfront neighborhoods. The overcrossing is proposed to begin at the intersection of South Canada and Pitos Streets, which is adjacent to existing residential homes, apartments, and a mobile home park. This new crossing location is centrally located in this high-density neighborhood and would shorten walking distances to Waterfront destinations by up to 1.5 miles, saving 30 minutes in walking time on a high-comfort route, rather than using the U.S. 101 Interchanges at Milpas Street or Cabrillo Boulevard. The landing location is proposed to connect to the future renovated Dwight Murphy Park. In addition to Eastside residents enjoying the newly renovated park, residents will also have walking and biking access to the Santa Barbara Zoo, the beach, jobs, and a safe route to Santa Barbara City College (SBCC). East Beach residents will have a safe route to Council Agenda Report
Support on Applying for Grant Match Funds for the State Street Master Plan Project and Update on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project [Resolution]
June 9, 2026

Cleveland Elementary, Santa Barbara Junior High and High Schools, the Eastside Library, Franklin Neighborhood and Health Center, and to neighborhood restaurants and services along Milpas Street.

For ATP Cycle 7, staff submitted a grant application that included design, environmental, right-of-way, and construction phases for both the Eastside Overcrossing Project and Lower Eastside Safety Project. While the ATP Cycle 7 grant application was not successful, the City did successfully obtain $8.7 million in grant funding from the State’s Senate Bill 1 (SB-1) Cycle 4 funding for construction of the Lower Eastside Safety Project.

That project is currently in final design, with design funded by the Santa Barbara County Association of Governments and in-kind staff contributions. Construction is anticipated to begin in June 2027.

In May of 2026, a community webinar and in-person meeting were held to update community members on the design of the Lower Eastside Safety Project and to notify residents about the Eastside Overcrossing Project. Community support for the Eastside Overcrossing Project received in these meetings as well as at the May 12, 2026, Council meeting was mixed. In addition, there could be a potential housing project at the Santa Barbara Zoo on land leased from the City. The housing project was not a factor during the conceptual design phase or prior to the ATP Cycle 7 grant application.

Based on the community feedback and uncertainty about compatability with a future housing project at the Santa Barbara Zoo, staff recommends not pursuing ATP Cycle 8 funding for the Eastside Overcrossing Project at this time. Instead, it is recommended to allocate $1,000,000 of funding for Eastside neighborhood improvements in addition to delivering the Lower Eastside Safety Project and the Milpas Street Crosswalk Safety and Sidewalk Widening Project (approximately $16 million in improvements). Staff will evaluate potential alternative traffic safety improvements on the eastside in collaboration with community partners and stakeholders. The funding could be used for future grant matching and/or immediate neighborhood needs. Staff will also conduct additional community outreach regarding the Eastside Overcrossing Project and return to Council should there be clear support to move forward with a future grant opportunity, potentailly the next ATP cycle. Alternatively, if Council prefers that staff apply for this current ATP Cycle 8 funding for the Eastside Overcrossing Project, a resolution affirming support and directing use of future matching funds is included and can be used as part of a Council action at this meeting.

Design of the Lower Eastside Safety Project is nearing completion and the City plans to publicly advertise the project for construction bids in early 2027. Construction is Council Agenda Report
Support on Applying for Grant Match Funds for the State Street Master Plan Project and Update on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project [Resolution]
June 9, 2026

anticipated to begin in summer 2027. The Lower Eastside Safety Project consists of the following features:
 Safe Routes to School safety enhancements, including curb extensions and high visibility crosswalks at the intersections of Montecito and Voluntario Streets, Montecito and Elizabeth Streets, Yanonali and Soledad Streets, Montecito and Soledad Streets, Quinientos and Voluntario Streets, Quinientos and Soledad Streets, and Carpinteria and Soledad Streets;
 Bike and pedestrian friendly street improvements, including curb extensions at Canada and Hutash Streets, Hutash and Voluntario Streets, Canada and Punta Gorda Streets, and Voluntario and Cacique Streets;
 Salinas Street safety improvements, including a lighting corridor on Salinas Street from the five-point roundabout to the US 101 off ramp at Salinas Street, and curb extensions at Salinas and Clifton Streets, Salinas and Carpinteria Streets, Salinas and Hutash Streets, Salinas and Pitos Streets and new access ramps at Salinas and Salinas Place; and
 Sidewalk infill on a portion of the 200 block of Alisos Street.

Design of the Milpas Street Crosswalk Safety and Sidewalk Widening Project is nearing completion and the City plans to publicly advertise the Project for construction bids in late 2026. Construction is anticipated to begin in early 2027. The Milpas Street Crosswalk Safety and Sidewalk Widening Project includes the following features between Canon Perdido and Quinientos Streets: new curb extensions, high visibility crosswalks, additional lighting, accessibility improvements, widened sidewalks at street corners and transit stops, leading pedestrian intervals at signalized intersections, mast arm mounted Rectangular Rapid Flashing Beacons, and a median refuge island at one non-signalized intersection.

Budget/Financial Information:

A strong local match improves the competitiveness of ATP applications. Given the current state of the City’s budget and high total estimated project cost, staff are only requesting a one percent match for the State Street Master Plan Project. Staff are currently developing preliminary construction budgets for this project. It is anticipated that the one percent match for the State Street Master Plan Project will be up to $1,000,000. The City’s match funding would most likely be through a combination of future funding sources, including but not limited to Measure C (local sales tax), Measure B (transient occupancy tax), Measure A (regional grant), and Urban Greening Grants (State), and/or the County’s Council Agenda Report
Support on Applying for Grant Match Funds for the State Street Master Plan Project and Update on the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project [Resolution]
June 9, 2026

Coastal Resource Mitigation Fund. If the grant application is successful, the expenditure appropriations for the City’s matching funds would be needed in Fiscal Years 2028 through 2031, and staff would return to Council to appropriate the grant and matching funds.

For the Eastside Overcrossing Project, skipping the ATP Cycle 8 Grant application will allow staff to focus on collecting additional community feedback and delivering the $8.7 million of grant funding previously awarded to the Lower Eastside Safety Project and the $8 million of ATP grant funding previously awarded to the Milpas Street Crosswalk Safety and Sidewalk Widening Project. Future match funding would be needed should staff return with a recommendation to pursue grant funding for the Eastside Overcrossing Project.

Sustainability Impact:

Both the State Street Master Plan Project and Eastside Overcrossing Project are consistent with the Council-adopted Vision Zero Strategy, Bicycle and Pedestrian Master Plans, Circulation Element, and Climate Action Plan. The projects provide residents with a safe active transportation mode choice, which will assist in reducing vehicle trips and greenhouse gas emissions.

Environmental Review:

If funded, the projects will require environmental review under the California Environmental Quality Act and potentially National Environmental Policy Act review, if federally funded.

Attachments:

1. State Street Master Plan Project Location Map

2. Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront Project Location Map
Prepared By: Ashleigh A. Sizoo, P.E. City Engineer
Tess Harris, State Street Master Planner/nv
Submitted By: Brian D’Amour, P.E, Public Works Director Approved By: Kelly McAdoo, City Administrator
Attachment 1: Highway 101 Overcrossing from Eastside to the Waterfront Map 1: Existing Land Use Map with Proposed Improvements in Blue Map Key:

Existing High Stress Freeway and Railroad Crossing Location Between Eastside and Waterfront Proposed New Low Stress Route Between Eastside and Waterfront (New Overcrossing) Funded Lower Eastside Safety Enhancements Project Locations to provide Safe, Low Stress Access to New Overcrossing and Neighborhood Schools
At Issue:

The Eastside neighborhood was cut off from the Waterfront when Highway 101 was built. The freeway crossings for Eastside residents to access the Waterfront are 1.25 miles apart, and the crossings are busy arterial streets that cross freeway ramps, creating high stress routes between the neighborhoods. The project will create a low stress connection that shaves off a significant travel distance for residents.

Attachment 1
Map 2: Aerial Rendering of Proposed Overcrossing from the Lower Eastside Neighborhood to the Waterfront Neighborhood.

Attachment 1
Attachment 2: State Street Master Plan Location

STATE STREET TODAY
The study area encompasses three distinct
districts, each with its own character:

Entertainment District (400–600 blocks)
A vibrant concentration of bars, restaurants, wine
tasting rooms, and nightlife venues under a lush
tree canopy. Generally regarded as one of the more
economically healthy segments of the corridor.

STATE STREET TODAY
The study area encompasses three distinct
districts, each with its own character:

Entertainment District (400–600 blocks)
A vibrant concentration of bars, restaurants, wine
tasting rooms, and nightlife venues under a lush
tree canopy. Generally regarded as one of the more
economically healthy segments of the corridor.

Attachment 2
Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA AUTHORIZING STAFF TO APPLY FOR GRANT

FUNDING FOR DESIGN, ENVIRONMENTAL REVIEW, AND

RIGHT OF WAY PHASES OF THE STATE STREET MASTER
PLAN
WHEREAS, in 2018, City Council adopted a Vision Zero Strategy committing to eliminating all injuries and deaths on City of Santa Barbara streets, and State Street was designated as a Vision Zero Priority Corridor due to history of collisions.

WHEREAS, well-attended public workshops and stakeholder meetings were held throughout the State Street Master Planning Effort and to review the State Street Master Plan;
WHEREAS, the community supports grant funding towards design, environmental review, and right-of-way phase;

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

1. Staff are directed to seek funding for the design, environmental review, and rightof-way, and construction phases of the State Street Master Plan Project; and

2. Staff are authorized and directed to apply for an Active Transportation Program Grant, or other eligible grants that would be appropriate for the design, environmental review, and right-of-way phase and to take all actions consistent with this resolution necessary or convenient for the implementation of the State Street Master Plan.

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA
BARBARA AMENDING RESOLUTION 24-013 SUPPORTING
THE HIGHWAY 101 PEDSTRIAN AND CYCLIST BRIDGE

OVERCROSSING FROM THE EASTSIDE TO THE

WATERFRONT, AND DIRECTING STAFF TO APPLY FOR A

GRANT TO FUND DESIGN, ENVIRONMENTAL REVIEW, AND

RIGHT-OF-WAY PHASES
WHEREAS, in 2018, City Council adopted a Vision Zero Strategy committing to the elimination of all injuries and deaths on City of Santa Barbara streets and, concurrently with Resolution No. 24-013, approved the Lower Eastside Community Connectivity Active Transportation Plan, which identified two projects:

1. Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront

2. Lower Eastside Safety Enhancements Project; and
WHEREAS, the safety enhancement infrastructure improvements identified in the plan would improve safe routes to Franklin Elementary School, Adelante Charter School, Santa Barbara City College, Dwight Murphy Park, and larger East Beach/Waterfront neighborhoods; and
WHEREAS, public workshops and stakeholder meetings were held to review the plan and the safety improvements identified in the plan; and WHEREAS, the Lower Eastside Safety Enhancement Project received grant funding for construction from Senate Bill 1 (SB-1), Cycle 4.

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

1. Staff is directed to seek funding for the design, environmental review, and right-ofway phases for the Highway 101 Pedestrian/Cyclist Bridge Overcrossing from the Eastside to the Waterfront, as described in the Lower Eastside Community Connectivity Active Transportation Plan.

2. Staff is authorized and directed to apply for an Active Transportation Program Grant, SB-1 Grant, or other eligible grants that would be appropriate for the design, environmental review, and right-of-way phases named in Section 1 and take all actions consistent with this resolution necessary or convenient for the implementation of this safety improvement.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 9, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization (Est. Time 5:00 p.m.)
Recommendation: That Council:

A. Receive the draft ordinance amending the Santa Barbara Municipal Code by adding Chapter 26.90 relating to Residential Rent Stabilization; and B. Open a 30-Day Public Comment period to solicit input from the public on the draft Ordinance.

Executive Summary:

The proposed Ordinance establishes a comprehensive Rent Stabilization Program for the City of Santa Barbara. The program would take effect on January 1, 2027 and is designated to protect tenants from excessive rent increases while preserving constitutionally protected fair-return rights for property owners. The City Administrator’s Office recommends that Council receive the draft Ordinance, provide any additional policy direction as needed, and authorize staff to proceed with the public review process.

Discussion:

Santa Barbara's rental housing market has chronically low vacancy rates and some of the highest rents in California, driven by constrained housing supply, significant demand from the university and tourism sectors, and the City's desirable coastal location. These conditions have created severe affordability pressures for long-term residents and low- to moderate-income tenants, leaving many vulnerable to rapid rent increases and displacement without the protections that a formal rent stabilization program would provide.

Rent stabilization programs operate in numerous California jurisdictions, including the cities of Los Angeles, San Francisco, Oakland, Berkeley and Pasadena. Following Agenda Item No. 14
Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

enactment of AB 1482 (the Tenant Protection Act of 2019), the State established a statewide rent cap of 5% plus local CPI (not to exceed 10%) for certain residential units.

The proposed Ordinance establishes a local program that is more protective than State law for covered units and reflects Council’s current policy priorities.

The proposed Ordinance incorporates Council direction received on key policy components of a rent stabilization program from hearings that occurred on December 16, 2025, April 7, 2026 and May 19, 2026. The draft Ordinance was prepared by the City Attorney’s Office following review of comparable municipal ordinances and programs with consultation from RSG, Inc.

Key Policy Components:

The following section summarizes the six most significant policy components of the draft Ordinance that will most directly determine the program’s effectiveness, legal durability, and administrative sustainability.

Program Scope and Unit Exemptions (§ 26.90.010)
The draft Ordinance applies broadly to residential units within the City. However, Section

26.90.010 identifies nine categories of exempt units.
• Units Built After February 1, 1995: Rental units for which a certificate of occupancy was issued (or final building permit inspection completed) on or after February 1, 1995. This aligns with the Costa-Hawkins Rental Housing Act, which prohibits local governments from applying rent control to units built after that date. • Single-Family Homes, Condominiums, and Townhomes: Units that are “alienable separate from title to any other dwelling unit” (including single-family homes, condos, and townhomes), provided the owner is not a corporation, real estate investment trust (REIT), or limited liability corporation (LLC) with at least one corporate member. Important nuances:
– If a prior tenancy was terminated by the owner with a notice under Civil Code §1946.1 or §827, the unit is not exempt.
– Condominiums not yet sold separately by the original sub-divider are not exempt.
– Corporate, REIT, or LLC owners are not exempt even if the unit type would otherwise qualify.
• Owner-Occupied Duplexes: A two-unit property where the owner occupies one unit as their principal residence at the beginning of the tenancy and continues to do so, provided neither unit is an Accessory Dwelling Unit (ADU) or Junior Accessory Dwelling Unit (JADU).

Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

• Short-Term Occupancies (30 Days or Less): Hotel, motel, inn, rooming house, boarding house, and similar transient lodgings where occupancy does not exceed 30 consecutive days. The Ordinance includes anti-avoidance provisions to prevent landlords from requiring tenants to check out and re-register before 30 days to circumvent coverage.
• Institutional Housing: Units in hospitals, convents, monasteries, extended medical care facilities, asylums, non-profit senior homes, dormitories of accredited higher education institutions, and residential treatment or recovery facilities where housing is tied to program participation.
• Deed-Restricted Affordable Housing: Units owned, operated, or managed by a public agency or nonprofit subject to a recorded covenant requiring rental at affordable rates for low- or moderate-income households. • Government-Owned and Federally/State-Exempt Units: Units owned or operated by a government entity that federal or state law specifically exempts from local rent control.
• Mobile Home Parks: Units within mobile home or permanent recreational vehicle parks subject to Chapter 26.08 of the Municipal Code.

Rent Stabilization – (§26.90.030)
The draft Ordinance prohibits landlords from charging rent in excess of base rent plus increases as authorized by the Ordinance. Base rent is either (1) the rent for a rental unit in effect on December 16, 2025, for existing tenancies, or (2) the rental rate established upon initial occupancy of a rental unit for tenancies commencing after December 16, 2025. This is consistent with the Temporary Rent Increase Moratorium.

The draft Ordinance also stabilizes rent by prohibiting landlords from increasing rent unless the increase is authorized by the Ordinance through either the annual general adjustment or through the petition process.

The Ordinance allows a landlord to adjust rents to market rates when at the beginning of a new tenancy following a vacancy (vacancy de-control), as required by State statute.

Rent Adjustment Formulas – Annual General Adjustment (§ 26.90.040) The draft Ordinance establishes the standard formula for allowable annual rent increases for covered rental units. This is the primary mechanism for limiting rent growth under the program.

The Formula and How it Works
Annual General Adjustment = 60% of CPI Change or 3% whichever is Less Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

The CPI percentage change is calculated for the twelve-month period from November 1 of the prior year to October 31 of the current year. The calculated change is multiplied by 60% and then capped at 3% whichever is lower. If the change in CPI is negative, the adjustment is zero. Rents may not be decreased under this section. The result is rounded to the nearest one-quarter of one percent (0.25%). The Program Administrator must publish the adjustment on the City’s Rent Stabilization Ordinance webpage by December 1 each year, effective January 1 of the following year.

Timing and Use-It-Or-Lose-It Rule
A landlord who wishes to implement the annual general adjustment must do so within the applicable calendar year (January 1 through December 31). The Ordinance expressly prohibits deferring or banking unused adjustments from one year to another. Landlords must provide at least 30 days advance written notice before any rent increase takes effect.

Habitability Prerequisite
No annual general adjustment may be applied if the landlord has failed to maintain the rental unit in compliance with California Civil Code Section 1941.1 et. seq. (habitability requirements) or California Health and Safety Code Sections 17920.3 and 17920.10 (substandard conditions), or has failed to make repairs ordered by a court or the City Building Official.

Special Adjustments - Petition Process (§ 26.90.050 – 26.90.80) The draft Ordinance provides a structured petition process allowing both landlords and tenants to seek special rent adjustments, subject to review by a hearing officer and, on appeal, the Rent Stabilization Board.

Landlord Petition – Fair Return Adjustment (§ 26.90.050) A landlord may petition for a rent increase above the annual general adjustment if the standard cap does not provide a constitutionally required fair return on investment. The standard used is the Maintenance of Net Operating Income (MNOI) standard. The intention of this Section is to provide landlords with an avenue to prove that an adjustment is necessary to provide the landlord a fair return as required by the California and United States Constitutions.
• Presumption: The base year (2025) net operating income is presumed to have provided a fair return. The landlord bears the burden of demonstrating that this presumption is rebutted.
• MNOI Standard: A landlord is entitled to receive the base year net operating income adjusted upward by the change in CPI from the base year to the current year. This CPI-adjusted NOI is presumed to be a fair return.

Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

• NOI Calculation: Net Operating Income = Gross Rental Income minus Operating Expenses. The Ordinance provides detailed definitions of what is included and excluded from both gross income and operating expenses. Notably excluded are mortgage payments, depreciation, capital improvement costs (handled separately), and political contributions.
• Capital improvement costs are not operating expenses and must be sought through a separate petition.
• Landlords may rebut the fair return presumption by showing unusually high or low base year expenses, or disproportionately low base year gross income due to exceptional circumstances.

Landlord Petition – Capital Improvement Pass-Through (§ 26.09.060) A landlord may seek a separate rent adjustment to recoup costs of qualifying capital improvements through a tenant cost pass-through.
 A “capital improvement” is an addition, improvement, or major repair with a useful life of five or more years, permanent in nature, benefitting tenants. It excludes routine maintenance or repairs, work ordered to correct code violations, and any improvement completed before December 31, 2025.
 The landlord must file the petition within two years of completing the improvement.  The monthly pass-through cost per tenant is capped at the lesser of 10% of current monthly rent or $100.
 Capital improvement pass-throughs must be separately itemized on rent statements and are not included in the base rent for purposes of future annual adjustments.
 If a capital improvement benefits only some units, the pass-through applies only to those benefited units.
 Any insurance, court-awarded damages, or subsidy reimbursements must be deducted before computing the pass-through.

Tenant Petition – Downward Adjustment (§ 26.90.070)
Tenants have the right to petition for a downward rent adjustment under three grounds:
(1) Habitability Failure. If the landlord has failed to maintain the unit in habitable condition in violation of the Civil Code or Health and Safety Code, such failure constitutes a deemed rent increase, and tenants may seek a corresponding rent reduction.
(2) Reduction in Housing Services. A decrease in housing services (maintenance, amenities, parking, etc.) without a corresponding rent reduction is treated as an effective rent increase, subject to a downward adjustment.

Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

(3) Overcharged Rent. If a landlord has charged rent above the lawful level, the tenant may petition for a refund and downward adjustment. If the landlord fails to refund overcharged rent within 30 days of an order, the tenant may withhold a portion of rent as authorized by the hearing officer or Board until the amount is recovered.

Petition Procedures (§ 26.90.080)
The following procedural timeline applies to all petitions:

Filing Landlord or tenant files petition with Program
Administrator. Must include unit address, nature of
request, statement of grounds, and (for landlord
petitions) a list of affected tenants.

Acceptance
(30 Days)
Program Administrator reviews for completeness (not
merits) and notifies petitioner of acceptance or rejection within 30 days.

Notice to Parties
(14 Days)
Within 14 days of acceptance, all parties receive written notice of the petition, process, and response deadlines.

Hearing Scheduled
(60 Days)
Hearing will be scheduled within 60 days of acceptance.

Parties receive at least 20 days’ advance notice.

Hearing Officer Decision
(30 Days)
Written decision issued within 30 days of the hearing’s conclusion.

Appeal to RSO Board
(30 Days)
Any aggrieved party may appeal to the Rent
Stabilization Board within 30 days of the hearing
officer’s decision.

Board Decision
(30 Days)
Board will consider appeal within 30 days of filing and render a decision within 30 days thereafter.

Judicial Review Final Board decisions (or final hearing officer decisions if no Board exists) are subject to judicial review under SBMC Chapter 1.30, within 30 days of notice.

Petitions will be decided by hearing officers, who will conduct evidentiary hearings at which the parties will be entitled to present evidence in support of or opposition to a petition. Petition hearings will be recorded to create an evidentiary record. The burden of proof rests with the petitioner, who must establish their case by a preponderance of the Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

evidence. Formal rules of evidence that would apply in court proceedings do not apply to petition hearings and any relevant, credible evidence — including hearsay — is admissible. The hearing officer will issue a written decision, supported by the evidence and law, following the hearing. Hearing officer decisions may be appealed to the Rent Stabilization Board. To help assure that hearing officers are independent, the appointment, selection, employment, performance evaluation, compensation, and benefits of a hearing officer cannot be directly or indirectly conditioned upon the outcome of the hearings they conduct and decide.

The proposed Ordinance also includes additional procedural notes. For instance, a petition will not be accepted if a prior petition based on the same grounds was decided within the previous 180 days. Where multiple petitions have been filed for units located on the same property, they will be consolidated for a single hearing unless good cause is shown to proceed otherwise.

The decision of a hearing officer is not automatically stayed pending appeal. If the Board ultimately reverses the hearing officer's decision, retroactive adjustments may be ordered to account for the intervening period.

Finally, petitions are to be made available in the language used to negotiate the Rental Agreement when that language is other than English, ensuring accessibility for nonEnglish-speaking parties.

Program Administration
A Program Administrator, a City employee designated by the City Administrator, leads the day-to-day administration of the Rental Stabilization Program. The responsibilities of the Program Administrator include, but are not limited to, the following:
 Operating the Rental Registry and processing registration, amendments, and exemption claims;
 Accepting, processing, scheduling and noticing petitions;  Publishing the Annual General Adjustment on the RSO webpage by December 1 each year;
 Implementing new regulations (subject to Rent Stabilization Board approval);  Providing administrative and staff support to the Rent Stabilization Board (serving as Board Secretary);
 Arranging for hearing officers and court reporters for petition hearings; and  Enforcing registration requirements and referring violations to the City Attorney.

Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

Rent Stabilization Board (§ 26.90.090)
The proposed Ordinance establishes a seven-member Rent Stabilization Board appointed by the City Council to provide oversight, hear appeals of petition decisions, and approve implementing regulations.

The Board composition will be:
 Two members who are tenants of rental housing in the City.  Two members who are landlords or property managers of rental housing in the City.
 Three members with no financial interest in or ownership of rental housing in the City.

All members must be residents of the City of Santa Barbara. Terms will be four-years with the initial terms staggered: two years for one tenant, one landlord and two at-large members. City Council may remove a Board member at any time for any reason. Four members constitute a quorum and petition decisions require affirmative votes of four members. Conflict of interest is subject to California Political Reform Act and Santa Barbara Local Conflict of Interest Code.

Board Powers and Duties
The Rent Stabilization Board is required to hold regular meetings no less than once per year, or at such other frequency as established by Board resolution, as well as special meetings whenever the need arises. Appeals from hearing officer decisions will generally be considered at special meetings. Appeals will generally be based on the Board’s review of the evidence presented to the hearing officer and the hearing officer’s decision.

However, the Board may also elect to hold a de novo hearing.

In addition to its adjudicative functions, the Board is responsible for approving administrative regulations developed by the Program Administrator and for making recommendations to both the Program Administrator and the City Council regarding the administration of the program. The Board is further authorized to conduct studies, surveys and investigations as necessary to fulfill its duties, and to perform any other duties as directed by the City Council through resolution or motion.

Rental Housing Mediation Board and Rent Stabilization Board The current Ordinance creates and maintains a Rent Stabilization Board separate from the current Rental Housing Mediation Board. Staff has concerns about the added administrative burden and cost of maintaining two separate boards. While adjudication must be maintained separately from mediation functions, there may be ways to Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

consolidate and streamline the two boards. As part of program implementation, staff will evaluate ways to create efficiencies between these two boards while also ensuring appropriate segregation of duties.

Hearing Officers (§ 26.90.130)
Hearing officers conduct petition hearings and issue written decisions. The proposed Ordinance authorizes the City Administrator to retain hearing officers by:
 Hiring as a City employee.
 Appointing a panel of at least five volunteer active or retired attorneys or retired judges (four-year terms).
 Contracting with individual attorneys or retired judges on an ad hoc basis.  Contracting with an arbitration or dispute resolution firm.

Hearing officers who are not City employees serve as independent contractors. To avoid conflicts of interest, they may provide no other services to the City. Compensation is not conditioned on hearing outcomes.

Rental Registry (§ 26.090.100)
A rental registry is a cornerstone of the program’s administration and enforcement framework. All landlords with covered rental units are required to register each unit with the Program Administrator. Initial registration must be completed by January 1, 2027, or within 30 days of registration forms being made available, whichever is later. Each registration must include the unit address, bedroom and bathroom count, landlord contact information, date of ownership, current rent, the date and amount of the last rent increase, and the tenant’s move-in date. Notably, tenant identifying information is not required.

Landlords who believe their units are exempt from coverage must file a claim of exemption accompanied by supporting documentation signed under penalty of perjury. Additionally, the Program Administrator will establish requirements for annual renewal of registrations, as well as ongoing amendment obligations to reflect changes such as new ownership or updated property management information.

Landlords who fail to comply with registration requirements face significant consequences. Non-compliant landlords are prohibited from advertising their units for rent, collecting rent, evicting tenants, applying annual rent adjustments, or filing petitions for upward rent adjustments. Landlords who register after the applicable deadline are further subject to late fees and penalties established by City Council resolution.

Enforcement and Tenant/Landlord Protections (§ 26.90.120) Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

The proposed Ordinance provides a broad set of enforcement tools and remedies available to the City, landlords, and tenants. Violations of the Ordinance constitute punishable offenses under the Santa Barbara Municipal Code Chapter 1.28. The City Attorney is empowered to bring civil or criminal actions, seek injunctive relief, and recover both costs and attorney’s fees from violating parties.

Any aggrieved person may bring a civil action for damages arising from violations of the Ordinance or from final hearing officer or Board decisions. Importantly, no administrative remedy must be exhausted prior to filing suit. Similarly, any aggrieved person, including the City and the People of the State of California, may seek injunctive relief to address violations or threatened violations of the Ordinance.

A landlord’s failure to comply with the Ordinance constitutes a complete affirmative defense available to a tenant in any unlawful detainer action brought for possession of a covered rental unit. Furthermore, any attempt by a landlord to recover possession of a unit in violation of the Ordinance renders that landlord liable for wrongful eviction damages, and a prevailing tenant is entitled to recover costs and reasonable attorney’s fees.

Finally, no rent increase authorized under any provision of the draft Ordinance – whether through an annual adjustment or a petition – may take effect unless and until the landlord has fully complied with all applicable registration requirements.

Public Comment Review Period
Following the June 9, 2026, Council meeting, there will be a 30-day Public Comment period. The comment period provides an opportunity for tenants, property owners, community organizations, housing advocates, and members of the public to review the draft and submit input prior to formal consideration by Council. Written comments may be submitted via email to: [email protected].

Comments submitted during the Public Comment period will be compiled and made available for Council review. Staff will summarize all comments received and provide a matrix of key themes, concerns, and suggested revisions to accompany the Ordinance when it is brought back for formal introduction and adoption in late July.

Budget/Financial Information:

The estimated cost of a Rent Stabilization Program is $2 million annually based on the estimated number of units that would be impacted by such a program given Council direction to date. The estimated number of units (13,000), with no exemptions beyond Council Agenda Report
Review of Draft Ordinance Amending the Santa Barbara Municipal Code by Adding Chapter 26.90 Relating to Residential Rent Stabilization June 9, 2026

what is required by State law, would equate to a $154 fee per unit for full program cost recovery. These numbers are based entirely on estimates from peer jurisdictional research at this stage in the process and are expected to increase given the direction from Council to incorporate petition fees into the annual rental unit fee. The City will conduct a fee study to determine the amount per unit to recover the full costs of program administration and then Council will need to provide direction on how the costs will be passed through to property owner and/or tenant.

Attachment: Draft Rent Stabilization Ordinance
Prepared and
Submitted By: Barbara Andersen, Sr. Assistant to the City Administrator Daniel Hentschke, Assistant City Attorney
Approved By: Kelly McAdoo, City Administrator

PUBLIC REVIEW DRAFT
June 9, 2026
1 ORDINANCE NO.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA AMENDING THE SANTA BARBARA

MUNICIPAL CODE BY THE ADDITION OF CHAPTER

26.90 RELATING TO RESIDENTIAL RENT

STABILIZATION

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

SECTION 1. Title 26 of the Santa Barbara Municipal Code is amended to add Chapter 26.90 as follows:

CHAPTER 26.90. RESIDENTIAL RENT STABLIZATION
Section 26.90.010 Application.

A. This Chapter applies to all residential rental units in the City except:

1. Rental units for which a certificate of occupancy was issued (or final inspection on a building permit application for construction of the unit was completed) on or after February 1, 1995.

2. Rental units that are alienable separate from title to any other dwelling unit or are a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the California Business and Professions Code. Examples include single-family homes, condominium units, and townhomes. This exception does not apply to any of the following:
a. A rental unit where the preceding tenancy has been terminated by the owner by notice pursuant to California Civil Code Section 1946.1 or has been

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2 terminated upon a change in the terms of the tenancy noticed pursuant to California Civil Code Section 827;
b. A condominium dwelling or unit that has not been sold separately by the subdivider to a bona fide purchaser for value.
c. The owner of the rental unit is any of the following:
i. A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one member is a corporation.

3. A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner's principal place of residence at the beginning of the tenancy so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.

4. Rental units in hotels, motels, inns, tourist homes, lodging and rooming houses and boarding houses, or other similar temporary lodgings provided that the occupancy is for 30 days or less. The computation of the 30 days shall include days in which the tenant was required to:
a. Move into a different guestroom or efficiency unit before the expiration of 30-day occupancy;
b. Check out and re-register before the expiration of 30-day occupancy to avoid application of this ordinance, or

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3 c. Enter into successive or overlapping rental agreements, extensions, or renewals, whether for the same or a different unit, before the expiration of 30 dayoccupancy.

5. Rental units in:
a. A hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged;
b. A dormitory owned and operated by an accredited institution of higher education;
c. A facility that has the primary purpose of operating a treatment or recovery program, where such rental units are contingent upon a client's participation in the treatment or recovery program and where the client has been informed in writing of the temporary or transitional nature of the housing at the inception of his or her participation in the program.

6. Rental units owned, operated, or managed by a public agency or not-forprofit organization and subject to a recorded covenant or other restriction that requires renting the unit at rents affordable to low- or moderate income households.

7. Rental units that a government unit, agency or authority owns, operates, or manages, if an applicable federal or state law or administrative regulation specifically exempts such units from municipal rent control.

8. Rental units within a mobilehome or permanent recreational vehicle park and subject to the provisions of Chapter 26.08 of this Code.

9. Permitted short term vacation rentals for a rental period of 30 days or less.

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4 B. When a rental unit is exempt from this Chapter under paragraph 2 of subsection A, the tenants must have been provided written notice that the unit is exempt from this Section using the following statement: "This property is not subject to the rent limits imposed by Santa Barbara Municipal Code Chapter 26.20 and the owner is not any of the following: a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; a corporation; or a limited liability company in which at least one member is a corporation.” For a tenancy existing before the effective date of this ordinance, the notice required by this subsection may, but is not required to be provided in the rental agreement. For a Tenancy commenced or renewed on or after the effective date of this ordinance, the notice must be provided in the rental agreement.

Section 26.90.020 Definitions.

The definitions in this Section apply to the interpretation of this Chapter.

Annual general adjustment. Annual general adjustment means the rental adjustment described in Section 26.90.040 of this Chapter.

Base rent. Base rent means either: (1) the rent for a rental unit in effect on December 16, 2025, for tenancies commencing on or before December 16, 2025, or (2) the rental rate established upon initial occupancy of a rental unit for tenancies commencing after December 16, 2025, provided the rental rate is established in accordance with state law.

Base year. Base year for the purposes of making fair return determinations under Section 26.90.050 means the 2025 calendar year. If the rent for a covered rental unit is increased because of a general annual adjustment under Section 26.90.040 or a fair return adjustment under Section 26.90.050, then the base year for any subsequent

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5 petition under Section 26.90.050 shall be the year that was considered the "current year" in the immediately preceding petition.

Capital Improvement. Capital Improvement means an improvement, addition or major repair to a rental unit or common areas of the housing complex containing the rental unit, for the benefit of tenants, that has a useful life of five years or more and that is required to be amortized over the useful life of the improvement. Capital improvement does not include normal or routine maintenance, repair, replacements. A capital improvement must be permanent/fixed in nature rather than temporary or movable and must not primarily relate to a service or amenity for which tenants separately pay a fee. Capital Improvement does not include work performed due to correct Notice of Violation by a government agency ordering repairs. Capital improvement does not include an improvement completed before December 31, 2025.

City Administrator. City Administrator means the person holding the office of city administrator of the City including any city employee exercising authority delegated by the City Administrator.

City Council. City Council means the elected governing body of the City of Santa Barbara.

Consumer Price Index or CPI. Consumer Price Index or CPI means the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations. for the twelve-month period ending as of March of the current year.

Covered rental unit. Covered rental unit means any rental unit not specifically exempted under Section 26.90.010.

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6 Day. Day means calendar day.

Fair return. Fair return means an economic return on property as determined by using the maintenance of net operating income (MNOI) standard outlined in Section 26.90.060.

Hearing officer. Hearing officer means a person appointed by the City Administrator to conduct an investigation or administrative hearing under this Chapter.

Housing services. Housing services include, but are not limited to, repairs, maintenance, painting, lighting, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, utility charges that are paid by the landlord, refuse removal, furnishings, telephone, parking, common areas, recreational facilities, the right to have a specified number of occupants, and any other benefit, privilege, arrangement, or facility provided or contracted for in connection with the use or occupancy of any rental unit. Housing services to a rental unit include a proportionate part of services provided to common facilities of the building in which the rental unit is contained.

Landlord. Landlord means an owner, lessor, sublessor or any other person entitled to receive rent for the use and occupancy of any rental unit, including an agent, representative, predecessor, or successor of any of the foregoing.

Program Administrator. Program Administrator means the City employee designated by the City Administrator to enforce and administer the provisions of this Chapter.

Property. Property means all covered rental units under common ownership on a parcel, lot, or contiguous parcels or contiguous lots.

Rent. Rent means all periodic payments under a rental housing agreement concerning the use or occupancy of a rental unit, including all payments and other consideration

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7 demanded or paid for housing services. Rent does not include refundable security deposits or avoidable fees imposed by a landlord such as fees for late payment of rent or for checks returned for insufficient funds.

Rent Stabilization Board. The Rent Stabilization Board is the board established by this Chapter.

Rental agreement. Rental agreement means an agreement - oral, written, or implied - between a landlord and tenant for use or occupancy of a rental unit and for housing services. For the purpose of this Chapter, the terms “rental agreement” and “lease” are interchangeable.

Rental registry. Rental registry means the database of information on covered rental units in the City required by Section 26.90.100.

Rental registry fee. Rental registry fee means the fee described in Section 26.90.110.

Rent Stabilization Program. The Rent Stabilization Program means the personnel and policies that implement and enforce the provisions of this Chapter.

Rental unit. Rental unit means any building or structure, or part thereof, land appurtenant thereto, or any other property rented or offered for rent for residential purposes. A unit may qualify as such with or without a valid certificate of occupancy for use as rental housing, together with all housing services connected with use or occupancy of such property.

Security deposit. Security deposit means any payment, fee, deposit, or charge as defined in Section 1950.5 of the California Civil Code.

Tenant. Tenant means any tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a rental agreement to occupy a rental unit.

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8 Section 26.90.030 Stabilization of Rents.

A. Beginning January 1, 2027, a landlord is prohibited from charging rent for a covered rental unit in an amount that exceeds the sum of the base rent plus any lawful rent increases implemented pursuant to this Chapter.

B. Beginning January 1, 2027, a landlord is prohibited from increasing rent for a covered rental unit except in an amount permitted under Sections 26.90.040, 26.90.050, and 26.90.060.

C. Notwithstanding subsection A of this Section, a landlord may set the initial rent for a new tenancy following the lawful vacancy of a covered rental unit, subject only to limitations of California statute. After the initial rent for a covered rental unit has been set, a landlord may not increase rent except as provided in subsection B of this Section.

D. If a landlord increased the rent for a covered rental unit after December 16, 2025, but before January 1, 2027, in accordance with applicable law, then the amount of the increase will be counted in full against rent increases authorized under this Chapter until the prior increase if fully amortized.

E. No more than one rent increase per twelve-month period may be imposed on a tenant.

F. A violation of this Section occurs upon the delivery to a tenant of a notice or demand for a prohibited increase in rent.

G. As part of any notice to increase rent, introduce a new rental agreement, or renew or change any terms of an existing rental agreement, a Landlord must include:
1 Notice of the existence of this Chapter, and;

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9 2. Notice that no rent increase shall take effect until the requirements of this Chapter have been met.

Section 26.90.040 Annual General Rent Adjustment.

A. No later than December 1 each year, the Program Administrator will determine and post on the City’s Rent Stabilization Program webpage the amount of the annual general adjustment, which will be effective as of January 1 of the following year.

B. The annual general adjustment will be equal to 60% of the annual percentage change in the Consumer Price Index or 3%, whichever is less. The annual general adjustment will be based upon the percentage change in the Consumer Price Index for the 12-month period from November 1 of a year to October 31 of the following year. For example, the first calculation of the annual percentage change in the Consumer Price Index will be based on the period from November 1, 2025, to October 31, 2026. The calculated change will be rounded to the nearest one-quarter of a percent. If the percentage change in the Consumer Price Index is negative, the annual general adjustment will be zero.

C. A landlord who seeks to raise rent by the annual general adjustment must do so within the 12-month period between January 1 and December 31 of the same year. A landlord who fails to implement a rent increase pursuant to the annual general adjustment during such period may not defer implementation of the annual general adjustment to a later year or from year-to-year.

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10 D. Allowable annual general adjustment rent increases under this Section shall become effective only after the landlord provides notice to the tenant in the manner prescribed by law, with at least 30 days' advance written notice.

E. An annual general rent adjustment may not be applied to any covered rental units if the landlord has failed:

1. To maintain the rental unit in compliance with California Civil Code Sections 1941.1 et seq. and California Health and Safety Code Sections 17920.3 and 17920.10; or

2. Has failed to make repairs ordered by court or by the City Building Official.

26.90.050 Petition for Special Adjustment – Fair Return A. A landlord may file a petition with the Program Administrator seeking adjustment of the rent for any given tenancy in accordance with the standards stated in this Section and using the procedures stated in Section 26.90.080 and implementing regulations. A petition must be accompanied by a declaration by the landlord that each covered rental unit for which the petition is submitted comply with all requirements of this Chapter. The Program Administrator, with the approval of the Rent Stabilization Board, may issue regulations to further govern petitions in accordance with law and the purposes of this Chapter.

B. The intention of this Section is that individual upward rent adjustments be granted only when the landlord demonstrates that such adjustments are necessary to provide the landlord a fair return as required by the California and United States Constitutions.

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11 C. No upward rent adjustments may be authorized under this Section if the landlord has failed to maintain the covered rental unit or units in compliance with California Civil Code Sections 1941.l et seq. and California Health and Safety Code Sections 17920.3 and 17920.10.

D. The following presumptions apply the evaluation of petitions under this Section.

1. The net operating income received by the landlord in the base year provided a fair return.

2. The base rent for a covered rental unit provided a fair return at the time it was established.

E. A landlord has the right to obtain a net operating income equal to the base year net operating income adjusted by the change in the Consumer Price Index from the base year to the current year, which shall be presumed to be a fair rate of return. The current year CPI shall be the annual CPI for the calendar year preceding the calendar year when the application is filed. While it is presumed that the maintenance of net operating income standard under this Section provides a fair return, nothing in this Section prevents the hearing officer or Rent Stabilization Board from granting a rent increase that is necessary to meet constitutional requirements.

F. The Landlord may present evidence to rebut the presumption of fair return under subsection E of this Section and consistent with at least one of the following findings:

1. The landlord's operating expenses in the base year were unusually high or low in the base year were unusually high or low based on a preponderance of the evidence presented by the landlord.

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12 2. The gross income during the base year was disproportionately low due to exceptional circumstances. In such instances, adjustments may be made when calculating base year gross rental income consistent with the purposes of this Chapter.

The following factors may be considered when making such a finding:
a. If the gross income during the base year was lower than it might have been because some tenants were charged reduced rent.
b. If the gross income during the base year was significantly lower than normal because of temporary vacancy for construction or repairs. c. The pattern of rent increases or decreases in the years prior to the base year and whether those changes reflected increases in the CPI. d. Other exceptional circumstances.

H. Net operating income shall be calculated by subtracting operating expenses from gross rental income. For the purposes of this calculation the following principles apply:

1. Gross rental income includes:
a. Gross rents calculated as gross rental income at 100% occupancy. b. All other income or consideration received or receivable in connection with the use or occupancy of the rental unit or units, except items excluded from gross rental income under this subsection.

2. Gross rental income excludes:
a. Utility charges for sub-metered gas, electricity or water. b. Charges for refuse disposal, sewer service, or other similar services that are either provided solely on a cost pass-through basis or are regulated by state or local law.

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13 c. Charges for laundry services.
d. Storage charges.
e. Additional rents imposed upon tenants that are supplementary to the primary rent, such as "pet rent."

3. Operating expenses include:
a. Reasonable costs of operation and maintenance.
b. Reasonable management expenses.
c. Cost of utilities such as water, sewage, gas, electricity, or communication systems that are provided by a public agency or private utility company and paid by the landlord.
d. Property taxes attributable to an assessment in the base year and current year. Property taxes attributable to assessments in any other year shall not be considered when calculating operating expenses.
e. License and registration fees required by law to the extent these expenses are not otherwise paid or reimbursed by tenants. f. Landlord-performed labor compensated at reasonable hourly rates.

However, no landlord-performed labor shall be included as an operating expense unless the landlord submits documentation showing the date, time, and nature of the work performed. The maximum allowed for landlord-performed labor shall not exceed 5% of gross income unless the landlord shows greater services were performed for the benefit of the residents.
g. Reasonable attorneys' fees and costs incurred in connection with successful good faith attempts to recover rents owed, successful good faith unlawful

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14 detainer actions not in derogation of applicable law, and legal expenses necessarily incurred in dealings with respect to the normal operation of the property, but excluding attorneys’ fees incurred with respect to a petition under this Chapter. h. Fee paid in connection with the rental registry under Section

26.90.110 in an amount not to exceed 50%.

4. Operating expenses do not include:
a. Capital improvement expenses. Adjustments for capital improvement expenses may be obtained under Section 26.90.060. b. Mortgage principal or interest payments or other debt service costs. c. Any penalties, fees or interest assessed or awarded for violation of any provision of this Chapter or of any other provision of law. d. Land lease expenses.
e. Political contributions.
f. Payments to persons or organizations that are substantially devoted to legislative lobbying purposes.
g. Depreciation.
h. Any expenses for which the landlord has been reimbursed by any utility rebate or discount, security deposit, insurance settlement, judgment for damages, settlement or any other method or device.
i. Unreasonable increases in expenses since the base year. h. Expenses associated with the provision of master-metered water, gas, or electricity services.

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15 j. Expenses attributable to unreasonable delays in performing necessary maintenance or repair work or the failure to complete necessary replacements.

5. Base year or current year operating expenses may be averaged or adjusted, as appropriate based on the preponderance of the evidence, to establish an expense amount that best achieves a reasonable comparison of base year and current year expenses. Grounds for such adjustments include, but are not limited to:
a. An expense item for a particular year that is not representative. b. A base year expense for an item is not a reasonable reflection of average past expenses for that item in the years immediately preceding or following the base year.
c. A current year expense for an item is not a reasonable projection of expenses for that item.
d. A particular expense exceeds industry standards for the area. e. A base year expense was exceptionally low by industry standards, provided that the low expense was not caused by a reduction of service, maintenance, or amenities.
f. An increase in maintenance or management expenses that is disproportionate to the percentage change in the CPI, while the level of services has not changed significantly or the increase is not justified by special circumstances.

I. When a cost is required to be amortized, an interest allowance on the cost of amortized expenses may be considered at a rate equal to the "average rate" for the thirtyyear fixed rate on home mortgages plus 2%. The "average rate" shall be the rate Freddie Mac last published in its weekly Primary Mortgage Market Survey (PMMS) as of the

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16 Petition’s initial submission date. If this rate is no longer published, the Program Administrator shall designate by regulations an index that is most comparable to the PMMS index.

J. If the period for determining the allowable rent increase pursuant to this Section exceeds 120 days the landlord may recover increases that would have been permitted if the rent increase decision had been made within 120 days. The allowance for these increases may be amortized or may be factored into the prospective allowable increase in order to avoid undue hardship on the Tenants.

K. Rent increases authorized by this subsection shall become effective only after the landlord provides the tenant written notice of such rent increase pursuant to state law.

Section 26.90.060 Petition for Special Adjustment – Capital Improvements A. A landlord may file a capital improvement petition with the Program Administrator seeking a rent adjustment for any given tenancy and requesting a pass-through cost to the tenants to cover expenses incurred by the landlord to complete capital improvements for or attributable to the rental unit, in accordance with the standards stated in this Section and using the procedures stated in Section 26.90.080 and any implementing regulations.

A petition shall include a declaration by the landlord that the covered rental unit or units comply with all requirements of this Chapter.

B, No adjustment for a capital improvement may be authorized by a hearing officer or the Rent Stabilization Board under this Section if the landlord has failed to maintain the covered rental unit or units in compliance with California Civil Code Sections 1941.l et seq. and California Health and Safety Code Sections 17920.3 and 17920.10, or if the

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17 capital improvement has been ordered to correct the violation of any law or regulation relating to building habitability or safety for human occupancy.

C. A capital improvement petition must be initiated by the landlord within two years of completing the capital improvement. Capital improvement, as defined in Section

26.90.020, does not include an improvement completed before or during the initial base year.

D. A capital improvement petition shall not apply to rental units or tenants for which the initial rent was established after commencement of the capital improvement for which a rent adjustment is sought.

E. A landlord may not require a tenant to pay any amount of any cost that is attributable to any period of time that the tenant was not entitled to use and occupy the rental unit.

F. A landlord may not require a tenant to pay more than the tenant's share of the cost of a capital improvement attributable to that tenant's rental unit and that is permitted to be passed through pursuant to a petition.

G If a capital improvement benefits one or more, but less than all of the covered rental units on a property, then the rent adjustment shall be applied only to the rental units receiving the benefit, as determined by the hearing officer or Rent Stabilization Board.

H. The approved monthly pass-through adjustment costs for capital improvements shall be separately itemized on the rental statement provided to a tenant, and it shall not be included in the calculation of future rent adjustments under either Section 26.90.040 or 26.90.050.

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18 I. Capital Improvement pass-through adjustments must be determined according to the following:
a. Capital Improvement costs may be amortized over the useful life of the capital improvement but may not result in a monthly pass through cost that exceeds 10% of the current monthly rent or $100 whichever is less. For the purposes of such computation, the current rent for any period shall not include any capital improvement pass-through amounts;
b. For mixed-use structures and landlord-occupied rental units, only the percentage of residential square footage will be applied in the calculations; c. If a unit is occupied by an agent of the landlord, this unit must be included when determining the average costs per rental unit; and, d. If the landlord is reimbursed for capital improvements (i.e. through insurance, court-awarded damages, subsidies, etc.), such reimbursement must be deducted from the capital improvements costs before the costs are amortized and allocated among the rental units.
e. When a cost is required to be amortized, an interest allowance on the cost of amortized expenses may be considered at a rate equal to the "average rate" for the thirty-year fixed rate on home mortgages plus two 2%. The "average rate" shall be the rate Freddie Mac last published in its weekly Primary Mortgage Market Survey (PMMS) as of the Petition’s initial submission date. If this rate is no longer published, the Program Administrator shall designate by regulations an index that is most comparable to the PMMS index.

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19 Section 26.90.070 Tenant Petition for Downward Adjustment A. A tenant petition may be filed under Section 26.90.080 to adjust rent downward based on a loss in rental value attributable to the landlord's failure to maintain a covered rental unit or units in habitable condition. Failure to maintain a covered rental unit in compliance with governing health and safety and building codes, including but not limited to California Civil Code Sections 1941.1 et seq. and California Health and Safety Code Sections 17920.3 and 17920.10, constitutes an increase in Rent. A tenant petition under this subsection must specify the conditions alleged to constitute the failure to maintain the rental unit or units in habitable condition and demonstrate that the Landlord was provided with reasonable notice and opportunity to correct the conditions alleged in the petition.

B. A tenant petition may be filed under Section 26.90.080 to adjust rent downward based on a loss in rental value attributable to a decrease in housing services, maintenance, or to deterioration of the rental unit. A decrease in housing services or maintenance, or deterioration of a covered rental unit beyond ordinary wear and tear, without a corresponding reduction in rent, is considered an increase in rent. A tenant petition under this subsection must specify the conditions alleged to constitute the decrease in housing services, maintenance, or the deterioration of the rental unit and it must demonstrate that the landlord was provided with reasonable notice and opportunity to correct the conditions alleged in the petition.

C A tenant petition may be filed under Section 26.90.080 to adjust rent downward to its lawful level if a landlord demands or retains rent exceeding the lawful rent permitted by this Chapter. If such a petition is granted, the landlord shall be ordered to return any excessive rent charged to the tenant. If the landlord fails to comply by returning the

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20 amount of the overcharged rent to a tenant within 30 days of the issuance of the order, the hearing officer or Rent Stabilization Board may authorize the tenant to withhold a fraction of the downward-adjusted rent until the tenant has recovered the overcharged rent amount. The withholding fraction and duration shall be determined by the hearing officer or Rent Stabilization Board. During the withholding period, the downward-adjusted rent minus the withholding amount shall be considered the lawful rent to which the landlord is legally entitled.

D. The petition order shall constitute a defense to any unlawful detainer action filed against a tenant withholding rent as authorized under this subsection. However, nothing in this subsection shall be construed to prevent a tenant from asserting previous overpayments of rent as a defense in an unlawful detainer proceeding.

E. If a tenant vacates the covered rental unit before recovering the full amount of overpayment as determined in the petition order, the landlord must pay the balance of the amount owed within two weeks of the tenant vacating the rental unit.

Section 26.90.080 Petition Procedures.

A. A landlord, tenant, or group of tenants may file petitions with the Program Administrator for adjustments under Sections 26.90.050, 26.90.060, or 26.90.070 as provided in this Section. For purposes of the petition process, the landlord and each tenant of a covered rental unit that is the subject of a petition shall be a "party" to the petition. The Program Administrator may issue regulations regarding procedures for petitions filed under this Section, subject to approval by the Rent Stabilization Board.

Petitions shall be governed by such regulations and by the provisions of this Section.

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21 Petitions shall be available in the language that the landlord and tenant used to negotiate the terms of the rental agreement for the tenancy if the rental agreement is in a language other than English.

B. A petition must state the identity and mailing address of the person or persons filing the petition, the covered rental units affected by the petition, the nature of the rental adjustment for which the petition is filed, and a brief statement of the grounds and facts upon which the petition is based. If the petition is filed by a landlord, the petition shall be accompanied by a separate list of the names and mailing addresses, or email addresses if applicable, of the tenants of each of the covered rental units affected by the petition.

The separate list will be kept confidential to the extent authorized by law and used by the Program Administrator solely for the purpose of giving notices required by this Section.

C. Within 30 days of filing a petition, the Program Administrator shall notify the petitioner of the acceptance or rejection of the petition based on the completeness of the submission. The Program Administrator shall not assess the merits of the petition and shall only refuse acceptance of a petition that does not include required information or does not comply with the requirements of this Section.

D. Landlords filing petitions shall be responsible for payment of any applicable program fees established by City Council resolution. No landlord petition shall be accepted or processed if the landlord is delinquent on any required fees under this Chapter.

E. A petition may not be accepted or processed if a decision has been made on a prior petition based on the same, or substantially the same grounds, within the previous 180 days.

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22 F. Within 14 days after the acceptance of a petition, the Program Administrator shall provide written notice to the landlord and tenants of the rental units subject to the petition.

The written notice shall inform the parties of the petition process, the right to respond, and the deadline for filing a written response, and it shall include a copy of the completed petition and supportive documents. Any written response submitted by a responding party will be made available to the petitioning party.

G. An impartial hearing officer appointed by the Program Administrator shall conduct a hearing to act upon the petition. The hearing officer has the power to approve, deny, or approve in part and deny in part a petition; to issue orders consistent with this Chapter that are necessary or convenient to conduct a fair hearing; to issue orders consistent with this Chapter to implement a decision on the petition; and to exercise any other powers delegated by regulations promulgated by the Program Administrator and approved by the Rent Stabilization Board.

H. The Program Administrator shall schedule each petition accepted for a hearing by the hearing officer to be held on a date not more than 60 days from the date the Program Administrator accepts the petition. With the agreement of the parties, the hearing officer may hold the hearing after the 60 days. The Program Administrator will give written notice of the hearing date to all of the parties not less than 20 days before the date of the hearing.

The notice will be given to the mailing address or email address provided to the Program Administrator under subsection B of this Section. Mailed notice will be given by first class mail, postage prepaid and will be deemed complete upon mailing. If notice is given by electronic mail, it will be complete on the sending date.

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23 I. All petitions pertaining to covered rental units on the same property will be consolidated for hearing unless the Program Administrator or hearing officer finds good cause not to consolidate the petitions.

J. All parties to a hearing may have assistance in presenting evidence and developing their positions from attorneys, legal workers, or any other person designated by the parties.

K. All parties may participate in the hearing. The Program Administrator may participate in the hearing to provide interpretations of this Chapter.

L. Formal rules of evidence shall not apply to hearings on petitions. The parties may offer any documents, testimony, written declarations, or other evidence that, in the opinion of the hearing officer, is credible and relevant to the petition. The hearing officer may consider the results of inspections of the property in question and the results of any other investigations conducted by or at the request of the hearing officer. Any relevant evidence, including hearsay evidence, may be considered. Evidence that is unduly repetitious, lacking credibility, or irrelevant evidence shall be excluded upon order by the hearing officer. The hearing officer may establish time limits for the presentation of evidence and argument. Oral testimony shall be on oath or affirmation, and the hearing officer is empowered to administer oaths or affirmations.

M. Any party may appear and offer such documents, testimony, written declarations, or other evidence as may be pertinent to the proceeding. The hearing officer may require either party to provide any books of accounts, records, or papers deemed pertinent, in addition to the information contained in the petition. The hearing officer may request the City to conduct a current building inspection if the hearing officer finds good cause to

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24 believe the current information does not reflect the current condition of the covered rental unit or units that are the subject of a petition. All documents required under this Section shall be made available to the parties involved prior to the hearing.

N. The party who files the petition shall have the burden of proof. A petition may not be granted unless supported by a preponderance of the evidence submitted at the hearing.

O. The hearing officer shall make a determination on the merits of the petition and shall provide a written statement of decision, including findings upon which the determination is based. The hearing officer's decision may be reasonably conditioned in any manner necessary to carry out the purposes of this Chapter. The hearing officer shall deliver the written statement of decision to the Program Administrator not more than 30 days after the conclusion of the hearing. The Program Administrator will promptly deliver the decision to party by first class mail, postage prepaid. Additionally, the parties to the hearing shall be notified of their right to any appeal allowed by the board and/or to judicial review of the decision.

P. The record of the hearing shall include: the petition; any response to the petition; all exhibits, papers, and documents required to be filed or accepted into evidence during the proceedings; a list of participants present; a transcript of the testimony accepted in the proceedings; a statement of all materials officially noticed; all recommended decisions, orders and/or rulings; all final decisions, orders, or rulings; and the reasons for each final decision, order, or ruling. All hearings shall be recorded, and the Program Administrator shall arrange for a court reporter.

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25 Q. Any party aggrieved by the decisions of the hearing officer may appeal to the Rent Stabilization Board. An appeal to the board shall be filed with the Program Administrator no later than 30 days after mailing of the written statement of decision by the Program Administrator as provided in Section 26.90.090. If no board exists at the time the appeal is filed, the decision of the hearing officer shall be final subject only to judicial review.

R. The decision of the hearing officer shall not be stayed pending appeal; however, in the event that the board on appeal reverses or modifies the decision of the hearing officer, the board shall order the appropriate party to make retroactive payments, as applicable, to restore the parties to the position they would have occupied had the hearing officer's decision been the same as that of the board.

S. The Program Administrator shall give notice of a decision on appeal of the Rent Stabilization Board. The notice will be given in the same manner as the decision of the hearing officer.

T. A final decision of the hearing officer is subject to judicial review only if there is no Rent Stabilization Board appointed at the time the final decision is issued. In such cases, the final decision of the hearing officer is subject to judicial review as provided in Chapter

1.30 of this Code, except that judicial review must be commenced in a court of competent jurisdiction not later than 30 days after the date notice of the final decision is given.

Section 26.90.090 Rent Stabilization Board
A. A Rent Stabilization Board to perform the functions designated in this Chapter is hereby established. The board will have seven members appointed by the City Council.

Two members must be tenants of rental housing in the City. Two members must be landlords or property managers of rental housing in the City. Three members must be

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26 appointed at large with no financial interest in or ownership of rental housing in the City.

All members must be residents of the City. Board members are subject to the requirements of the California Political Reform Act and the Santa Barbara Local Conflict of Interest Code. Board members shall serve for a term of four years or until their respective successors are appointed or qualified. However, the City Council may remove a board member at any time for any reason. The initial appointments of one of the tenant members, one of the landlord members, and two of the at-large members will be for terms of two years. The Program Administrator is designated as secretary of the board and will provide appropriate administrative and staff support.

B. The Rent Stabilization Board has the following powers and duties:

1. Hold regular meetings at least once each year or as otherwise established by resolution of the board, and hold special meetings as scheduled by the Program Administrator.

2. Conduct hearings, approve administrative regulations promulgated by the Program Administrator, and make recommendations to the Program Administrator or City Council regarding administration of the rent stabilization program or this Chapter.

3. Select a chair and vice chair. The chair and vice chair shall be selected every two years and may serve successive terms. The chair and vice chair serve at the pleasure of the board.

4. Establish procedures for and conduct hearings on and appeals of petitions determined by a hearing officer.

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

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27 6. Perform other duties as are designated by resolution or motion of the City Council.

C. All business of the Rent Stabilization Board shall be conducted at meetings held according to state law and City Council policy. The board shall not create temporary or standing committees. Four members of the board constitute a quorum for the transaction of business. A decision to grant or deny a petition requires the affirmative vote of four board members. All other actions of the board require approval by a majority of the quorum at a meeting.

D. Any party aggrieved by the decisions of the hearing officer under Section 26.90.80 may appeal to the Rent Stabilization Board in accordance with Section 26.90.80. An appeal to the board shall be filed with the Program Administrator no later than 30 days after the Program Administrator mails the written statement of decision of the hearing officer. The board shall consider the appeal within 30 days after it is filed and render a decision on the appeal within 30 days after the appellate hearing. On appeal, the board shall affirm, reverse, or modify the decision of the hearing officer. Board review of the hearing officer's decision shall be based on the hearing record without holding a new hearing, unless the Board elects to conduct a de novo hearing. The board may consider additional evidence for good cause, including evidence which did not exist at the time of the hearing by the hearing officer, or which could not be discovered using due diligence by a party. If no board exists at the time the appeal is filed, the decision of the hearing officer shall be final subject only to judicial review. The board, in consultation with the City Attorney, may establish procedures for the conduct of appeal hearings.

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28 E. A final decision of the Rent Stabilization Board is subject to judicial review as provided in Chapter 1.30 of this Code, except that judicial review must commence in a court of competent jurisdiction not later than 30 days after notice of the final decision.is given. The decision of the board shall take effect immediately, or on such other date as stated in the decision. A decision on appeal shall not be stayed pending judicial review except as otherwise ordered by a court of competent jurisdiction.

Section 26.90.100 Rental Registry
A. The Program Administrator shall create a rental registry in a format determined by the Program Administrator. The Program Administrator shall make registration or registration forms available to landlords through the Rent Stabilization Program website.

B. All landlords with rental units in the City shall complete registration with the Program Administrator for each covered rental unit as follows:

1. An initial registration form for each covered rental unit must be complete not later than January 1, 2027, or within 30 days after the Program Administrator has made the registration form available whichever is later.

2. Following the initial registration period, annual registration deadlines, renewal procedures, and related administrative requirements shall be established by the Program Administrator through regulations or administrative procedures.

3. The landlord must pay the rental registry fee for each covered rental unit concurrently with the filing of the registration form. A registration form is not complete unless the rental registry fee for each covered unit is paid.

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29 4. A landlord may submit a single form for all covered units on a property provided that the form contains all the required information for each covered unit and the rental registry fee for each covered unit is paid.

5. A landlord may file a claim of exemption under subsection C for any rental unit that is not a covered rental unit under this Chapter.

C. Any landlord that claims any exemption from this Chapter must file a claim of exemption with the Program Administrator. The claim of exemption shall be accompanied by supporting documentation and a written declaration stating the facts that support the claim of exemption. The declaration shall be signed under penalty of perjury. If a rental unit that has been exempted under the provisions of this Chapter loses its exempt status due to termination of the conditions qualifying it for exemption, the landlord of said rental unit must file a registration form for the rental unit within 30 days of the change in status.

D. When ownership of a property with rental units changes, the new owner must file an amendment to the registration or exemption form for each rental unit on the property within 30 days of the ownership change.

1. The new owner's amendment form must be accompanied by a copy of a written notification form prescribed by the Program Administrator and sent from the landlord to all tenants of each rental unit on the affected property.

2. The form should advise the tenants of the change in ownership and contain the name, address and contact information of the new owner and of the new owner's property manager or representative, if any.

3. The amendment form must also be accompanied by a declaration that the written notification was provided to all of the tenants.

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30 4. Registration amendments also shall be required to be filed with the City within 30 days of a change of the property management or authorized agent or if the address of the owner or authorized agent changes.

E. A landlord shall re-register a covered rental unit with the City within 30 days after a vacancy has occurred and the rental unit is re-rented.

F. Rental registration shall completely and accurately provide the following information from the landlord for each covered rental unit as of the filing date:

1. Address of each rental unit including identifying number or letter.

2. Number of bedrooms and bathrooms in the rental unit.

3. Name, current address, and contact information of landlord, authorized representatives and property managers.

4. Date of assumption of ownership of property by landlord.

5. Current rent.

6. Date and amount of last rent increase.

7. Move-in date of current tenant(s).

8. Additional information required by the Program Administrator.

The Program Administrator shall not require a landlord to provide identifying information of tenants.

G. All rental registration and exemption forms must include a declaration of the landlord under penalty of perjury that the information provided in the form is true and correct.

H. Commencing January 1, 2027, or within 30 days after the Program Administrator has made registration available whichever is later, the City may commence enforcement

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31 against any landlord who fails to register or file a notice of exemption for a rental unit. No landlord shall advertise for rent, demand or accept rent for a rental unit, or evict any tenant from a rental unit, if an accurate rental registration or exemption for that unit has not been completed or amended as required by this Section. No rental adjustment under Section

26.90.040, no petition for a rent adjustment may be filed, and no rental increase under Section 26.90.050 or 26.90.060 may take effect for any covered rental unit unless the landlord has complied with the registration requirements of this Section.

Section 26.90.110 Rental Registry Fee
A. A rental registry fee shall be paid by a landlord for each covered rental unit to fund the City's cost to implement, administer, monitor, support, and enforce the provisions of this Chapter.

B. The amount of the fee shall be determined by resolution of the City Council adopted and adjusted at any time. Revenue generated from fees shall not exceed the amount found by the City Council to be necessary to administer the provisions of this Chapter.

C. Any landlord who fails to file a registration form or an amendment to a registration form will be assessed additional late charges and penalties as determined by resolution of the City Council. Any required but unpaid rental registry fee and any penalty imposed by the provisions of this Section shall be deemed a debt to the City.

D. After timely payment of the rental registry fee, but not a late charge or penalty, the landlord may pass through up to 50% of the fee for a rental unit to the tenant of the applicable rental unit, to be paid by the tenant in 12 equal monthly installments. If a portion

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32 of the fee is pass-through to tenants, the amount must be separately itemized and shall not be considered part of the rent in calculating any rent Increase. Any pass-through unpaid by a tenant upon termination of a tenancy shall be absorbed by the landlord and not assessed to the tenant. No portion of the registration fee may be passed through to tenants who reside in housing restricted by a deed, regulatory restriction contained in an agreement with a government agency, or by any other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or by an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.

Section 26.90.120 Remedies Enforcement
A. The violation of any provision of this Chapter is a punishable offense as provided in Chapter 1.28 of this Code.

B. The City Attorney is authorized to enforce this Chapter through civil or criminal action. The City Attorney is further authorized to bring actions for injunctive relief on behalf of the City. The City Attorney shall seek recovery of costs, expenses, and attorney's fees as allowed by law.

C. Any aggrieved person may bring a civil action for damages for any violation of this Chapter or the final orders and decisions of a hearing officer or Rent Stabilization Board.

The burden of proof in such cases shall be by a preponderance of the evidence. No administrative remedy need be exhausted prior to filing a civil suit pursuant to this Section.

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33 D. Any person who commits an act, proposes to commit an act, or engages in any pattern and practice that violates this Chapter may be enjoined therefrom by any court of competent jurisdiction. An injunction action under this Section may be brought forward by any aggrieved person, including the City and People of the State of California. No administrative remedy is required to be exhausted before filing an action for injunctive relief pursuant to this Section.

E. A landlord's failure to comply with any requirement of this Chapter may be asserted as a complete affirmative defense in an unlawful detainer or any other action brought by the landlord to recover possession of a covered rental unit. Additionally, any attempt to recover possession of a covered rental unit in violation of this Chapter shall render the landlord liable to the tenant for damages in a civil action for wrongful eviction. The prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees.

F. The remedies provided in this Chapter are not exclusive, and nothing in this Section shall preclude any person from seeking any other remedies, penalties or procedures provided by law, nor is exhaustion of remedies under this Section a prerequisite to the assertion of any other such right.

Section 26.90.130 Hearing Officers
A. The City Administrator may retain hearing officers for the purposes of this Chapter using any or all of the following methods:

1. Hiring as a City employee.

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34 2. Appointing a panel of not less than five volunteer active or retired attorneysat-law or retired judge or other judicial officer, who shall serve a term of years as specified in this Section.

3. Contracting with an active or retired attorneys-at-law or retired judge or other judicial officer on an ad hoc basis for one or more matters or cases.

4. Contracting with a business entity that provides arbitration, mediation, or similar dispute resolution services.

B. If a panel has been appointed, a vacancy in any one of the hearing officer panel positions shall be filled in the same manner in which the position that has become vacant was filled, and the person appointed to such vacancy shall serve the remainder of the unexpired term of the person who left office or was removed from office.

C. A hearing officer, who is not a City employee, shall be an independent contractor.

To avoid conflicts of interest, including the appearance of conflicts, a hearing officer shall provide no services to the City other than those of a hearing officer.

D. The City Administrator is authorized to execute service agreements as necessary to implement this Section and subject to approval of the form of the contract by the City Attorney. Hearing officers, except volunteer panel members, shall be compensated for their services on an hourly or flat rate basis, and all hearing officers will be reimbursed for their actual and necessary expenses, without regard to the outcome of any decision.

E. If a panel of hearing officers is established, the term of office of each hearing officer appointed through the panel appointment method shall be four years and shall commence on the day of his or her appointment, provided that each such hearing officer shall continue to serve until his or her successor has been duly appointed and qualified. A

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35 hearing officer who is in the process of hearing a matter when the hearing officer’s term expires, however, shall continue to discharge his or her duties as a hearing officer until the matter is completed. A hearing officer may be appointed to successive terms.

F. An employee appointed as a hearing officer shall not have a term of office but shall serve as an at-will employee of the City. An attorney contracted for an individual matter shall not have a term of office but shall serve as an independent contractor.

G. The appointment, selection, employment, performance evaluation, compensation, and benefits of a hearing officer shall not be directly or indirectly conditioned upon the outcome of hearings conducted under this Chapter.

SECTION 2. If any Section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter or any part hereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Chapter or any part hereof. The City Council declares that it would have passed each Section, subsection, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more Sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional.

SECTION 3. The City Council finds that, on the basis of the whole record and by exercising its independent judgment, this Ordinance is not subject to environmental review pursuant to the State Guidelines for Implementation of the California Environmental Quality Act Sections 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and Section

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36 15061 (b)(3) because this Ordinance has no potential for resulting in physical change to the environment directly or indirectly as it merely regulates existing physical development.