Agenda packet, first session — Santa Barbara City Council, June 30, 2026 (part 1 of 3)

CITY OF SANTA BARBARA

CITY COUNCIL
Randy Rowse
Mayor
Kelly McAdoo
City Administrator
Kristen W. Sneddon
Mayor Pro Tempore
Oscar Gutierrez
Ordinance Committee Chair
John S. Doimas
City Attorney
Eric Friedman
Finance Committee Chair
Meagan Harmon
Mike Jordan
Wendy Santamaria
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
JUNE 30, 2026, 2:00 PM
AGENDA
IN-PERSON PUBLIC COMMENT: At the beginning of each meeting of the City Council, Finance Committee, or Ordinance Committee, any member of the public may address the City Council concerning any item not on the Council's agenda. Any person wishing to make such address should first complete and deliver a "Request to Speak" form prior to the time that public comment is taken up by the City Council. Each speaker will be given a total of 3 minutes to address the Council. Pooling of time is not allowed during general public comment. The time allotted for general public comment at the beginning of the 2:00 p.m. session is 30 minutes.

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

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

HOW TO REMOTELY OBSERVE AND/OR SPEAK LIVE AT A MEETING
• Web: https://santabarbaraca-gov.zoom.us/j/89359334270 (Participation via Zoom) • Telephone: Dial 1-669-900-6833, Enter Webinar ID: 893 5933 4270 (press *9 to raise/lower hand; press *6 to mute/unmute) • Online Streaming: Council meetings are streamed live at www.SantaBarbaraCA.gov/CAP • TV: Each regular City Council meeting is broadcast live in English and Spanish on City TV Channel 18 and rebroadcast in English on Wednesdays and Thursdays at 7:00 p.m. and Saturdays at 8:00 a.m., and in Spanish on Sundays at 3:00 p.m.

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

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

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

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

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

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

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

AMERICANS WITH DISABILITIES ACT: If you need auxiliary aids or services or staff assistance to attend or participate in this meeting, please contact the City Administrator's Office at 564-5305 or by email at [email protected]. If possible, notification at least 48 hours prior to the meeting will usually enable the City to make reasonable arrangements. For those who need accessibility accommodation in using the “raise hand” function and/or registering to participate in the Zoom session, please contact the Clerk’s office by 5:00 p.m. the day before the meeting for assistance. Additionally, a speaker may email [email protected] by 5:00 p.m. the day before a meeting, stating which item they wish to speak on. Specialized services, such as sign language interpretation or documents in Braille, may require additional lead time to arrange. 06/30/2026 Santa Barbara City Council Final Agenda Page 1 JUNE 30, 2026 AGENDA
FINANCE COMMITTEE MEETING - 12:00 P.M. IN THE COUNCIL CHAMBER

1. Subject: Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing
Recommendation: That Finance Committee consider and recommend that City Council:

A. Authorize the Deputy City Administrator to execute a Local Housing Trust Fund grant agreement in the amount of $400,000 to be awarded to Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street in downtown Santa Barbara; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-066, Adopting the Budget for Fiscal Year 2026, to Approve an Increase in Expenditure Appropriations in the Local Housing Trust Fund in the amount of $400,000 to Fund a Grant Agreement with Habitat For Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street. 06/30/2026 Santa Barbara City Council Final Agenda Page 2 REGULAR CITY COUNCIL MEETING - 2:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CEREMONIAL ITEMS

1. Subject: Parks Make Life Better Month

CHANGES TO THE AGENDA

CONSENT CALENDAR

2. Subject: Waiver of Reading in Full of Ordinances and Resolutions Recommendation: That Council waive the reading in full of all ordinances and resolutions on the consent agenda and the public hearing consent agenda and authorize reading by title only, pursuant to City Charter Section 511, unless otherwise requested by a member of the City Council; this waiver shall not apply to emergency ordinances, which shall be read in full as required by Section 511.

3. Subject: Local Coastal Program Amendment to Rezone a Portion of Santa Barbara Airport Property [Ordinance Adoption]
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Amending the Airport Zoning Map in Title 29 to Rezone a Portion of the Property Located at APN 073-450-003 near 404 Moffett Place from A-A-O/S-D-3 (Aircraft Approach and Operation/Coastal Zone) to A-F/SD-3 (Airport Facilities/Coastal Zone).

4. Subject: Adoption of an Ordinance Authorizing a Utility Easement to Southern California Edison for the Installation of Electric Vehicle Charging Facilities at the Harbor Main Parking Lot at 401 Shoreline Drive [Ordinance Adoption]
Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Public Works Director to Execute a Public Utility Easement Deed to Southern California Edison on City of Santa Barbara Property Located at the Harbor Main Parking Lot. 06/30/2026 Santa Barbara City Council Final Agenda Page 3

5. Subject: Adoption of Ordinance Approving a Lease Agreement with the United States Department of Commerce, National Oceanic and Atmospheric Administration at the Airport [Ordinance Adoption; Agreement] Recommendation: That Council adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Airport Director to Execute Agreement Number 26RPCA061C with United States Department of Commerce, National Oceanic and Atmospheric Administration, for a Meterological Montioring Site, at the Santa Barbara Airport, Commencing Upon the Effective Date of the Enabling Ordinance.

6. Subject: Approval of Development and Disposition Agreements and Related Agreements for the Paseo Nuevo Redevelopment Project [Ordinance Adoption; Agreement]
Recommendation: That Council adopt, by reading of title only, an Ordinance of the City of Santa Barbara Approving and Authorizing Execution of (1) the Paseo Nuevo Redevelopment Project Development And Disposition Agreement Between The City Of Santa Barbara And PNSP Real Estate, LLC, (2) The Paseo Nuevo Redevelopment Project Development And Disposition Agreement Between The City Of Santa Barbara And DSP Santa Barbara Sub LLC, And (3) Related Agreements Necessary Or Convenient For Implementation Of The Projects Described Therein, Including Transfer Of Fee Title To Exempt Surplus City Owned Property – APNs 037-400-001; 037-400-002; 037-400-003; 037-400-004; 037- 400-005; 037-400-006; and 037-400-019.
06/30/2026 Santa Barbara City Council Final Agenda Page 4

7. Subject: Agreement with The Mobility House LLC for Managed Charging Services and Electrical Vehicle Supply Equipment and Acceptance of Related Grant Funds [Ordinance Introduction; Resolution; Agreement] Recommendation: That Council:

A. Introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the Sustainability & Resilience Director to Execute an Agreement with The Mobility House LLC for Managed Charging Services for Electric Vehicle Charging Stations;
B. Authorize the General Services Manager to issue a Purchase Order in an amount not to exceed $604,679.48 to The Mobility House LLC for electric vehicle charger hardware and related equipment; and
C. That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara accepting grant funds and amending Resolution No. 25-066 Adopting the Budget for Fiscal Year 2026 to Increase Revenue and Expenditure Appropriations by $200,000 in the Sustainability and Resilience Department Fiscal Year 2026 Miscellaneous Grants Fund for Electric Vehicle Charging Infrastructure.

8. Subject: Proposed Lease Agreement for 918 State Street with State of Mind Cafe [Ordinance Introduction; Agreement]
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the City Administrator to Execute a One-Year Lease Agreement with One, Four-Year Option and One, Five-Year option with the non-profit corporation State of Mind Café for the Commercial Retail Space at 918 State Street Commencing on September 1, 2026.

9. Subject: Proposed Lease Agreement with Chandlery on the Breakwater, Inc. [Ordinance Introduction; Agreement]
Recommendation: That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Five-Year Lease Agreement with One Five-Year Option to Extend the Lease Terms at the Mutual Consent of Both Parties with Chandlery on the Breakwater, Inc., A California Corporation, at an Initial Base Rent of $2,258.80 per Month for the 483 Square Foot Office Space Located at 125 Harbor Way, Suites # 3, 4, and 5, Commencing Upon the Effective Date of the Enabling Ordinance. 06/30/2026 Santa Barbara City Council Final Agenda Page 5

10. Subject: Revised Utility Service Discontinuation Policy [Resolution] Recommendation: That Council adopt, by reading of title only, a Resolution Approving the Revised City of Santa Barbara Utility Service Discontinuation Policy.

11. Subject: Support Applying for Opportunity Zones 2.0 Designation of Qualifying Census Tracts in the Lower State Street Area and the Lower Eastside Neighborhood [Resolution]
Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing Staff to Apply for Opportunity Zones 2.0 Nomination by the State of California for the Qualifying Census Tract Covering Portions of Lower State Street; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing Staff to Apply for Opportunity Zones 2.0 Nomination by the State of California for the Qualifying Census Tract Covering Portions of the Lower Eastside.

12. Subject: Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing [Resolution; Agreement]
Recommendation: That Council:

A. Authorize the Deputy City Administrator to execute a Local Housing Trust Fund grant agreement subject to approval as to form by the City Attorney, in the amount of $400,000 to be awarded to Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street in downtown Santa Barbara; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-066, Adopting the Budget for Fiscal Year 2026, to Approve an Increase in Expenditure Appropriations in the Local Housing Trust Fund in the Amount of $400,000 to Fund a Grant Agreement with Habitat For Humanity of Southern Santa Barbara County for the Development of Affordable Housing at 710 E. Cota Street. 06/30/2026 Santa Barbara City Council Final Agenda Page 6

13. Subject: Second Amendment to Professional Services Agreement for an Extension of The Loop Shuttle Program on State Street with SWEEP Inc. [Agreement]
Recommendation: That Council authorize the City Administrator to execute a second amendment to increase the amount of Santa Barbara City Agreement No. 22500235 with SWEEP, Inc., by $440,305 for a total contract amount of $733,735 for transportation services from Cabrillo to Sola Street along State Street.

14. Subject: Contract Amendment for Design Services for the Taxiways E, A3, and A5 Pavement Reconstruction Project [Agreement]
Recommendation: That Council authorize the Public Works Director to execute the First Contract Amendment with Kimley-Horn and Associates, Inc., for additional engineering design services for the Taxiways E, A3, and A5 Pavement Reconstruction Project, Contract No. 28792, in the amount of $48,500, for a total expenditure authority of $339,130.

15. Subject: Professional Services Agreement Between the Library and Family Service Agency of Santa Barbara for Community Support Services and Outreach [Agreement]
Recommendation: That Council authorize the Library Director to execute a City Professional Services Agreement in the amount of $155,619 with Family Service Agency of Santa Barbara to provide 1.3 full-time equivalent Community Support Specialist position hours that work in collaboration with Library staff through July 31, 2027.

16. Subject: Waterfront Department Revocable License Agreement with Gelato Garden, a California Limited Liability Company, to Property Located at 11 Garden Street [Agreement]
Recommendation: That Council approve a revocable license agreement with Gelato Garden, a California Limited Liability Company, for property located at 11 Garden Street.
06/30/2026 Santa Barbara City Council Final Agenda Page 7

17. Subject: Agreement with RingCentral for Citywide Phone System Modernization [Agreement]
Recommendation: That Council:

A. Authorize the Information Technology Director to execute a five-year agreement with RingCentral in the amount of $1,046,284 for hardware, licenses, maintenance, and support for the citywide phone system modernization; and authorize up to $104,628 that may result in contract change orders, for a total expenditure authority of $1,150,912; and B. Authorize the Information Technology Director to execute a Professional Services Agreement with RingCentral in the amount of $149,076 for implementation services for the citywide phone system modernization; and authorize up to $14,907 that may result in contract change orders, for a total expenditure authority of $163,983.

18. Subject: Agreement with City of Goleta for the Operation and Maintenance of Shared Traffic Signals [Agreement]
Recommendation: That Council authorize the Public Works Director to enter into an Agreement with the City of Goleta for the operation and maintenance of shared traffic signals.

19. Subject: Agreement with Townsend Public Affairs, Inc. for Legislative Advocacy Services [Agreement]
Recommendation: That Council authorize the City Administrator to execute an agreement, subject to approval as to form by the City Attorney’s Office, with Townsend Public Affairs, Inc. in an amount not to exceed $108,000 covering the period from July 1, 2026 to June 30, 2027.

20. Subject: Water Supply Update
Recommendation: That Council receive an update on the City of Santa Barbara’s water supply condition.

21. Subject: May 2026 Investment Report
Recommendation: That Council accept the May 2026 Investment Report. 06/30/2026 Santa Barbara City Council Final Agenda Page 8

CONSENT PUBLIC HEARING

22. Subject: Public Hearing Regarding Parking and Business Improvement Area Annual Assessment Report for Fiscal Year 2027 [Resolution] Recommendation: That Council:

A. Consider any appropriate protests to the Parking and Business Improvement Area Annual Assessment Report for Fiscal Year 2027, as required under the California Parking and Business Improvement Law of 1989; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Fixing and Assessing the Parking and Business Improvement Area Assessment Rates for Fiscal Year 2027, and Confirming Approval of the Parking and Business Improvement Area Annual Assessment Report for Fiscal Year 2027.

REPORT FROM THE FINANCE COMMITTEE

GENERAL PUBLIC COMMENT

PULLED CONSENT ITEMS
06/30/2026 Santa Barbara City Council Final Agenda Page 9

PUBLIC HEARINGS

23. Subject: Coastal Wildfire Suppression Assessment District [Resolution] Recommendation: That Council:

A. Open the public hearing and provide opportunity for public comment; B. Provide a last call for ballots, close the public input portion of the public hearing, and tally the votes with City Staff in Room 15; C. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara establishing the Coastal Wildfire Suppression Assessment District and levy assessments therein, provided that, upon tabulation of the assessment ballots weighted according to the proportional financial obligation of each affected parcel, a majority protest as defined by Article XIII D of the California Constitution does not exist; and D. Read the title of the Ordinance and/or Resolution and, if there is no objection from any Councilmember present, waive further reading pursuant to Section 511 of the Santa Barbara City Charter.

24. Subject: Operating and Capital Budget for Fiscal Year 2027 [Ordinance Adoption; Resolution]
Recommendation: That Council:

24. Subject: Operating and Capital Budget for Fiscal Year 2027 [Ordinance Adoption; Resolution] (CONT’D)
E. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the City of Santa Barbara Abandoned Shopping Cart Recovery Fee;
F. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the City of Santa Barbara Solid Waste In-Place Additional Charge Per Cart Fee;
G. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing Classified and Unclassified Positions in the City’s Service Effective June 27, 2026, and Providing a Schedule of Classifications and Salaries for the Same in Accordance with the Operating Budget for Fiscal Year 2027;
H. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Continuation of Capital and Special Project Appropriations to Fiscal Year 2027;
I. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Water Resources Director to Execute Water Purchase Agreements, in a Form Approved by the City Attorney, and in Accordance with the Appropriation in the Approved Budget as May Be Amended from Time to Time;
J. Adopt, by reading of title only, 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;
K. 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; L. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing Temporary Interim Appropriations and Continued Funding for Essential City Operations Pending Adoption of the Fiscal Year 2027 Budget; and
M. Read the title of the Ordinance and/or Resolution and, if there is no objection from any Councilmember present, waive further reading pursuant to Section 511 of the Santa Barbara City Charter.
06/30/2026 Santa Barbara City Council Final Agenda Page 11

CITY COUNCIL ADMINISTRATIVE AND ATTORNEY REPORTS

COMMUNITY DEVELOPMENT DEPARTMENT

25. Subject: Accessory Dwelling Unit Ordinance Amendment Project Framework Recommendation: That City Council initiate amendments to the Title 28 (Coastal) and Title 30 (Inland) Accessory Dwelling Unit (ADU) Ordinances in accordance with recent legislative changes and requirements of State ADU law.

CITY ADMINISTRATOR

26. Subject: Interim Implementation of the State Street Master Plan Recommendation: That Council:

A. Direct staff to maintain the State Street Promenade in its current configuration until the Master Plan is implemented and return to Council with amendments to reauthorize Title 31; or
B. Direct staff to allow Title 31 to expire and return to Council to appropriate funds necessary to effectuate the re-configuration of the roadway until the Master Plan can be implemented.

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS & ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT

CITY OF SANTA BARBARA

FINANCE COMMITTEE MEETING

MEETING AGENDA
Agenda Date: June 30, 2026
Meeting Time: 12:00 PM
Meeting Location: Council Chambers
Finance Committee: Eric Friedman, Committee Chair
Wendy Santamaria, Committee Vice Chair
Meagan Harmon, Committee Member
Staff: Kelly McAdoo, City Administrator
John S. Doimas, City Attorney
Keith DeMartini, Finance Director

HOW TO WATCH OR SPEAK AT A MEETING REMOTELY
Web: SantaBarbaraCA-gov.Zoom.US/s/85839766181 (Participation via Zoom).

Online Streaming: Finance Committee meetings are streamed live at SantaBarbaraCA.gov/CAP.

TV: Regular Finance Committee meetings are broadcast live in English and Spanish on City TV Channel 18. Check program guide for rebroadcast meeting schedule at SantaBarbaraCA.gov/CityTV.

Telephone: Dial 1-669-900-6833, Enter Webinar ID: 858 3976 6181 (press *9 to raise/lower hand; press *6 to mute/unmute).

REMOTE PUBLIC COMMENT: When your item is called, use the Zoom Raise Hand feature (Alt+Y on Windows or Option+Y on Mac), wait for staff to activate your microphone, then unmute to speak (Alt+M on Windows or Command+Shift+A on Mac).

PUBLIC COMMENT: Speakers may address items not listed on the agenda but under the purview of the Finance Committee at the start of the meeting. Speakers may address the Committee on any item listed on the agenda.

Submit a "Request to Speak" form in advance. Each speaker will be given a total of three (3) minutes to address the Committee. Pooling time is not permitted. The Finance Committee Chair reserves the right to limit speakers’ time to less than three (3) minutes. Please note that a time cutoff may be announced during the meeting for submission of “Request to Speak” forms or raising of hands for public comment.

WRITTEN PUBLIC COMMENT: Email comments to [email protected] before the meeting. All emails are shared with the Finance Committee and will become part of the public record and may be posted online.

LANGUAGE TRANSLATION AND INTERPRETATION: The City offers live translation and interpretation for Finance Committee Meetings via the Wordly platform. Follow the directions below to access:
 Go to: Attend.Wordly.AI/Join/QQBV-6746.
o Ensure the Session ID QQBV-6746 is displayed.
o Select “Spanish” and click on the “Attend” button.
o You can now read the captions on your device.
o Select the speaker button to hear a text-to-speech version of the translated dialogue.  If you have any questions, please contact City TV at 805-564-5311.

SPANISH INTERPRETATION: If you need interpretation of your communications to Council from Spanish into English, please contact the City Administrator’s Office at 805-564-5305 or by email at [email protected]. If possible, notification of at least 48 hours will usually enable the City to make arrangements.

INTERPRETACIÓN EN ESPAÑOL: Si necesita una interpretación del español al inglés, para sus comunicaciones al Consejo, comuníquese con la Oficina del Administrador de la Ciudad al 805-564-5305, o por correo electrónico a [email protected]. Si es posible, la notificación de al menos 48 horas generalmente permitirá a la Ciudad hacer los arreglos.

ITEM FOR CONSIDERATION:

Subject: Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing Recommendation: That Finance Committee consider and recommend that City Council:

A. Authorize the Deputy City Administrator to execute a Local Housing Trust Fund grant agreement in the amount of $400,000 to be awarded to Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street in downtown Santa Barbara; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-066, Adopting the Budget for Fiscal Year 2026, to Approve an Increase in Expenditure Appropriations in the Local Housing Trust Fund in the amount of $400,000 to Fund a Grant Agreement with Habitat For Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street.

CITY OF SANTA BARBARA
Finance Committee Agenda Report
Agenda Date: June 30, 2026
To: Finance Committee
From: City Administrator’s Office
Subject: Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing
Recommendation:

That Finance Committee consider and recommend that City Council:

A. Authorize the Deputy City Administrator to execute a Local Housing Trust Fund grant agreement in the amount of $400,000 to be awarded to Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street in downtown Santa Barbara; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-066, Adopting the Budget for Fiscal Year 2026, to Approve an Increase in Expenditure Appropriations in the Local Housing Trust Fund in the amount of $400,000 to Fund a Grant Agreement with Habitat For Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street.

Background:

The Local Housing Trust Fund (LHTF) was established in 2024 as a dedicated funding source to support affordable housing construction, acquisition, rehabilitation, and subsidy. The LHTF was designed to be an agile source of Affordable Housing funding as well as to qualify for California State matching funds. While dollars tied to state matching grants must follow specific requirements set by the State Department of Housing and Community Development (HCD), funds that are not part of a matching grant may be used in alignment with City Council priorities, the Housing Element, and the City’s Affordable Housing Policies and Procedures.

Habitat submitted a funding proposal to the City Administrator’s Office of Housing and Community Vitality and, following staff’s review of the request and confirmation of available funding within the Local Housing Trust Fund (LHTF), the proposal was forwarded to the City Administrator and the Community Development Director for the compliance review required under LHTF Ordinance No. 6138. Staff determined that the proposal is consistent Agenda Item No. 1
Finance Committee Agenda Report
Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing June 30, 2026

Page 2 ends

with the Eligible Uses outlined in the ordinance. Accordingly, the request is being forwarded to the City Council for consideration of financial assistance.

Discussion:

Habitat for Humanity of Southern Santa Barbara County proposes to rehabilitate a 100-yearold structure currently used as office space and convert it into a two bedroom, one bathroom single family home for sale to a low-income household, with long term affordability restrictions recorded on title. The project emphasizes preservation, adaptive reuse, and retention of neighborhood character while restoring the structure to residential use and ensuring lasting affordability.

Habitat also proposes to construct a new, two bedroom, one bathroom accessory dwelling unit on the same parcel pursuant to AB 345, creating an additional deed restricted affordable homeownership opportunity. This infill development supports gentle density and aligns with the City’s goals for expanding affordable ownership options for working families without displacement or largescale redevelopment.

These two projects will create two deed-restricted affordable homes on a single infill site, leveraging existing infrastructure and minimizing neighborhood disruption while advancing the City’s affordable housing and climate goals. City participation will be instrumental in allowing Habitat to leverage additional public and philanthropic resources, maintain affordability at sale, and ensure long-term stewardship of the homes.

Budget/Financial Information:

Habitat’s total funding request amounts to $800,000. The Local Housing Trust Fund (LHTF) has approximately $730,000 in uncommitted funds available. Staff recommends awarding a $400,000 grant to Habitat, which would leave a remaining LHTF balance of $330,000 to support additional construction, acquisition, rehabilitation, or subsidy of housing for Very Low, Lower, and Moderate Income households.

Environmental Review:

Approval of the grant agreement is not a “project” for purposes of CEQA as there is no direct or indirect physical change to the environment.

Finance Committee Agenda Report
Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing June 30, 2026

Page 3 ends

A copy of the agreement may be requested from Housing and Homeless Services for public review by emailing [email protected]
Attachment:

1. Proposed Resolution
Prepared By: Caroline Paine, Housing and Homeless Services Manger Submitted By: Anthony Valdez, Deputy City Administrator Approved By: Kelly McAdoo, City Administrator
Resolution No.

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

INCREASE IN EXPENDITURE APPROPRIATIONS IN THE

LOCAL HOUSING TRUST FUND IN THE AMOUNT OF
$400,000 TO FUND A GRANT AGREEMENT WITH HABITAT

FOR HUMANITY OF SOUTHERN SANTA BARBARA COUNTY

FOR THE DEVELOPMENT OF AFFORDABLE HOUSING AT
710 E. COTA STREET.

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

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

1. The Council approves of an increase in expenditure appropriations in the Local Housing Trust Fund in the amount of $400,000 to fund a grant agreement with Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street.

Agenda Item No. 1
1 Ordinance No.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA AMENDING THE AIRPORT ZONING MAP IN TITLE
29 TO REZONE A PORTION OF THE PROPERTY LOCATED
AT APN 073-450-003 NEAR 404 MOFFETT PLACE FROM A-AO/S-D-3 (AIRCRAFT APPROACH AND OPERATION/COASTAL ZONE) TO A-F/S-D-3 (AIRPORT FACILITIES/COASTAL ZONE)

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

Section 1.

Effective immediately upon Coastal Commission Certification of the Local Coastal Program Amendment, Section 29.11.001 (Airport Zoning Map) of the Santa Barbara Municipal Code is hereby amended as follows:

Agenda Item No. 3
2 Ordinance No.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA APPROVING AND AUTHORIZING THE PUBLIC

WORKS DIRECTOR TO EXECUTE A PUBLIC UTILITY

EASEMENT DEED TO SOUTHERN CALIFORNIA EDISON ON

CITY OF SANTA BARBARA PROPERTY LOCATED AT THE

HARBOR MAIN PARKING LOT
WHEREAS, the City of Santa Barbara (City) owns the property commonly known as 401 Shoreline Drive (APN 033-120-018); and
WHEREAS, the City desires to install electric vehicle charging stations on this parcel and requires electrical service for those stations; and WHEREAS, a Grant of Easement for the above stated purpose has been prepared by Southern California Edison, has been approved as to form by the City Attorney, and is on file with the City Clerk.

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

1. The Public Works Director is authorized to execute a Grant of Easement with Southern California Edison in a form approved by the City Attorney.

2. The Public Works Director is authorized to execute any additional documents, as approved by the City Attorney, necessary or convenient to the grant of the easement and to cause the deed to be recorded in the official records of the County of Santa Barbara.

3. The Public Works Director may delegate the authority granted by this Ordinance to appropriate personnel within the Public Works Department.

Agenda Item No. 4
ORDINANCE NO.____________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA BARBARA

APPROVING AND AUTHORIZING THE AIRPORT DIRECTOR TO
EXECUTE AGREEMENT NUMBER 26RPCA061C WITH UNITED

STATES DEPARTMENT OF COMMERCE, NATIONAL OCEANIC AND

ATMOSPHERIC ADMINISTRATION, FOR A METEOROLOGICAL

MONITORING SITE, AT THE SANTA BARBARA AIRPORT,

COMMENCING UPON THE EFFECTIVE DATE OF THE ENABLING

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

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, An Ordinance of the Council of the City of Santa Barbara approving and authorizing execution of agreement number 26RPCA061C with United States Department of Commerce, National Oceanic and Atmospheric Administration, for a Meteorological Monitoring site at the Santa Barbara Airport, is hereby approved.

Agenda Item No. 5
1 Ordinance No.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
BARBARA APPROVING AND AUTHORIZING EXECUTION OF (1) THE

PASEO NUEVO REDEVELOPMENT PROJECT DEVELOPMENT AND

DISPOSITION AGREEMENT BETWEEN THE CITY OF SANTA BARBARA AND PNSB REAL ESTATE, LLC, (2) THE PASEO NUEVO

REDEVELOPMENT PROJECT DEVELOPMENT AND DISPOSITION

AGREEMENT BETWEEN THE CITY OF SANTA BARBARA AND DSP
SANTA BARBARA SUB LLC, AND (3) RELATED AGREEMENTS

NECESSARY OR CONVENIENT FOR IMPLEMENTATION OF THE

PROJECTS DESCRIBED THEREIN, INCLUDING TRANSFER OF FEE TITLE TO EXEMPT SURPLUS CITY OWNED PROPERTY – APNs 037-400-001; 037-400-002; 037-400-003; 037-400-004; 037-400-005; 037-400-006; and 037-400-019
THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

Section 1
Background and Purpose.

A. The City is the owner of multiple parcels of real property associated with the Paseo Nuevo Shopping Center in downtown Santa Barbara that it acquired from the Successor Agency of the Redevelopment Agency of the City of Santa Barbara pursuant to Successor Agency Resolution No. 15-099, City Council Ordinance No. 5731, and Grant Deed No. 61-456 recorded February 19, 2017 as Instrument No. 2016-0007814 in the Official Records of the County of Santa Barbara (“Paseo Nuevo Property”).

B. The Paseo Nuevo Property is encumbered by numerous “Paseo Nuevo Agreements” as such term is defined in the Assignment and Assumption of Paseo Nuevo Documents, recorded in the Official Records of the County of Santa Barbara as Instrument No. 2018-0031878, including the long-term ground leases and a long-term Construction, Operation and Reciprocal Easement Agreement (REA).

C. Paseo Propco, LLC, is the current ground lessee of portions of the Paseo Nuevo Property including the Inline Retail Parcel, the Lot 1 Parcel, and the Former Macy’s Parcel.

Agenda Item No. 6
2 D. DSP Santa Barbara Sub, LLC, is the current ground lessee of the portion of the Paseo Nuevo Property known as the Former Nordstrom Parcel.

E. On March 5, 2024, the City Council adopted Resolution No. 24-016, A Resolution Of The City Council Of The City Of Santa Barbara Declaring Designated Parcels Of City-Owned Property To Be Exempt Surplus Land Pursuant To Subparagraph (J) Of Paragraph (1) Of Subdivision (F) Of California Government Code Section 54221 – Paseo Nuevo, pertaining to the Paseo Nuevo Properties.

F. By letter dated March 18, 2024, the California Department of Housing and Community Development notified the City that the Paseo Nuevo Property and Lot 2 Parcel qualify as “exempt surplus land” under Government Code section 54221, subdivision (f)(1)(j), due to existing constraints under contractual rights.

G. The Paseo Nuevo Property has been developed with an outdoor regional shopping center commonly referred to as the Paseo Nuevo Shopping Center. Due to changed economic circumstances, including closure of two anchor tenants, the Paseo Nuevo Shopping Center no longer provides the financial or community benefits originally envisioned by the City or the lessees. The City, Paseo Propco, LLC (Propco), DSP Santa Barbara Sub, LLC (DSP), and PNSB Real Estate, LLC (Yardi) desire to transform the Paseo Nuevo Shopping Center into a mixed-use development that includes a new housing development by DSP on the Former Nordstrom Parcel and reuse of the former Macy’s building as Yardi System, Inc.’s downtown Santa Barbara corporate offices on the Former Macy’s Parcel, along with a continuation of certain retail, parking, and other uses consistent with the City’s general plan and zoning (the Project).

H. Accomplishment of the Project requires that the Former Nordstrom Parcel be transferred in fee by the City to DSP and the remainder of the Paseo Nuevo Property be transferred in fee by the City to Yardi. As encumbered by the Paseo Nuevo Agreements, the City’s fee interest in the Paseo Nuevo Property has limited monetary value to the City.

Therefore, the agreements for transfer of the City’s interest to Yardi and the DSP, respectively, provide for the transfer of the City’s fee interest for zero monetary consideration, but instead provide other for good and valuable consideration, including substantial community benefits along with contractual commitments for the benefit of the 3 City. Yardi has entered into a purchase and sale agreement with Propco to acquire all Propco’s rights, title and interest in and to the Former Macy’s Parcel, the Inline Retail Parcel, and the Lot 1 Parcel. City staff have negotiated a development and disposition agreement between the City and Yardi (Yardi DDA) and a development and disposition agreement between the City and DSP (DSP DDA). The parties have negotiated agreements for termination of the existing ground leases, the REA, and existing restrictive parking covenants. The parties have also negotiated new parking agreements with respect to City Lots 2 and 10. Implementation also requires a restated easement relating to non-vacated De La Guerra Street. All of these agreements, and others referred to in each of the DDAs, are necessary to implement the Project.

I. On June 2, 2026, the City Council heard a presentation regarding the Project and unanimously directed staff to bring back the final DDAs and related agreements for Council consideration and approval.

Section 2
CEQA Findings and Determinations
A. Concurrently with the approval of this Ordinance, the City Council has considered and approved the determinations of the City’s Environmental Analyst as follows:

1. The project is consistent with the adopted General Plan and zoning regulations. The project is consistent with applicable goals, policies, and implementation measures of the adopted General Plan because the project includes continuation of existing retail, parking, and other uses consistent with the City’s General Plan and zoning. The proposed mixed-use and residential uses align with the adopted Housing Element goals and the Adaptive Reuse Ordinance, as well as with adopted General Plan land use designation and zoning regulations.

2. The environmental effects of the project were examined in the certified EIR prepared for the Plan Santa Barbara General Plan Update (State Clearinghouse No. 2009011031). The project is consistent with the density and land use assumptions analyzed in the certified General Plan EIR.
4 3. An Environmental Checklist was prepared to assess the applicable environmental resource topics and determine whether the project would result in any peculiar impacts, substantially more severe impacts, newly feasible mitigation measures or alternatives, or new significant environmental effects. The Environmental Checklist provides the basis for the environmental determination and is part of the administrative record.

4. The Project impacts are not peculiar to the parcel or project, have been addressed in a prior EIR, or can be substantially mitigated with implementation of uniformly applied development policies or standards. There are no impacts peculiar to the project site that would exceed what was previously disclosed in the General Plan EIR. Further, there are no new direct or cumulatively considerable impacts of the proposed project.

5. Pursuant to Public Resources Code Section 21083.3 and CEQA Guidelines Section 15183, no further environmental review is required.

B. Concurrently with the approval of this Ordinance, the City Council has directed that a Notice of Determination be filed under Public Resources Code Section 21152 and CEQA Guidelines Section 15094.

Section 3
Approval and Authorization for Execution and Implementation.

A. The Paseo Nuevo Redevelopment Project Development and Disposition Agreement between the City of Santa Barbara and PNSB Real Estate, LLC (Yardi DDA), on file with the City Clerk, is approved. The City Administrator is authorized and directed, for and in the name of the City, to execute and deliver the Yardi DDA along with all related agreements attached as exhibits thereto, in the form and content submitted to the City Council in the agenda packet for its meeting of June 16, 2026, with such minor changes, insertions, and omissions as the City Administrator may require or approve as necessary or convenient to implement the action of the City Council at its meeting of June 16, 2026, and as approved as to form by the City Attorney.

B. The Paseo Nuevo Redevelopment Project Development and Disposition Agreement between the City of Santa Barbara and DSP Santa Barbara Sub, LLC (DSP DDA), on file with the City Clerk, is approved. The City Administrator is authorized and directed, 5 for and in the name of the City, to execute and deliver the DSP DDA along with all related agreements attached as exhibits thereto, in the form and content submitted to the City Council in the agenda packet for its meeting of June 16, 2026, with such minor changes, insertions, and omissions as the City Administrator may require or approve as necessary or convenient to implement the action of the City Council at its meeting of June 16, 2026, and as approved as to form by the City Attorney.

C. The Restated Non-vacated De La Guerra Street Easement between the City of Santa Barbara and PNSB Real Estate, LLC (Restated Easement), on file with the City Clerk, is approved. The City Administrator is authorized and directed, for and in the name of the City, to execute, deliver, and record the Restated Easement in the form and content submitted to the City Council in the agenda packet for its meeting of June 16, 2026, with such minor changes, insertions, and omissions as the City Administrator may require or approve as necessary or convenient to implement the action of the City Council at its meeting of June 16, 2026, and as approved as to form by the City Attorney.

D. The City Administrator, in consultation with the City Attorney, is authorized and directed to implement the Yardi DDA and the DSP DDA according to their terms and this paragraph. Whenever either DDA references City approval, consent, or waiver, the written approval, consent, or waiver of the City Administrator shall constitute the approval, consent, or waiver of the City, except where City Council approval is expressly required by the applicable DDA. The City Council authorizes the City’s Administrator to deliver such approvals or consents as are contemplated by either DDA, or to waive requirements under either DDA, on behalf of the City, except where City Council approval is expressly required by the applicable DDA, and further, except where an approval, consent, or waiver will have the effect of precluding concurrent closing of the transactions contemplated by both the Yardi DDA and the DSP DDA. Any material amendment or modification to the Yardi DDA or DSP DDA as determined by the City Attorney shall require approval by the City Council. The City Administrator or City Attorney are authorized to execute ancillary agreements, instructions, or other documents necessary or convenient to the closing of the transactions contemplated by the Yardi DDA and the DSP DDA.
6 E. The City Administrator is authorized and directed to accept on behalf of the City the community benefit contributions identified in the Yardi DDA and to deposit and appropriate those contributions to the City accounts or funds designated in the Yardi DDA or as otherwise required to carry out the purpose of the contribution.

F. The City Administrator is authorized and directed to accept on behalf of the City the community benefit contributions identified in the DSP DDA and to deposit and appropriate those contributions to the City accounts or funds as designated in the DSP DDA or as otherwise required to carry out the purpose of the contribution.

G. As used in this Section, City Administrator and City Attorney includes an Assistant City Administrator or Assistant City Attorney or any City officer or employee designated in writing by the City Administrator or City Attorney, respectively.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Sustainability & Resilience Department
Subject: Agreement with The Mobility House LLC for Managed Charging Services and Electrical Vehicle Supply Equipment and Acceptance of Related Grant Funds [Ordinance Introduction; Resolution; Agreement]
Recommendation:

That Council:

Discussion:

Background
In September 2020, Council adopted a goal of achieving carbon neutrality by 2035.

Transportation-related emissions account for more than 50 percent of the City’s greenhouse gas emissions, making vehicle electrification and expansion of EV charging critical steps towards achieving this goal. Council further stressed the importance of vehicle electrification through two measures in the 2024 Climate Action Plan: (1) a target of 3,536 new EV charger installations by 2035 and (2) a goal of fully electrifying (or decarbonizing) the City’s vehicle fleet by 2035.

Agenda Item No. 7
Council Agenda Report
Agreement with The Mobility House LLC for Managed Charging Services and Electric Vehicle Supply Equipment and Acceptance of Related Grant Funds [Ordinance Introduction; Resolution; Agreement]
June 30, 2026

Page 2 ends

Even prior to adoption of the 2024 Climate Action Plan, the City of Santa Barbara has steadily expanded deployment of alternative fuel and electric vehicles to decarbonize and electrify the City’s Fleet. To date, vehicle electrification efforts have primarily focused on light-duty vehicles.

However, driven by market growth and state regulations, a growing number of affordable medium- and heavy-duty battery-electric vehicles are now available from major manufacturers.

State Advanced Clean Fleet (ACF) regulations requires the City to procure a certain percentage of zero-emission or near-zero-emission medium and heavy-duty vehicles.

To meet the City’s goal of fleet electrification and state regulations, the Sustainability & Resilience Department has collaborated with the Public Works and Water Resources Departments operating at the City’s Fleet Yard to develop a project expanding electric EV charging infrastructure. The agreement before Council today is to purchase the EV charging equipment as well as the managed charging services necessary to network and deploy this equipment in support of EV charging expansion at the Fleet Yard.

The EV charging equipment includes:
 50 high-powered Level 2 EV chargers;
 1 low-power DCFC charger (2 total charging ports); and  2 High-powered DCFC chargers (4 total charging ports).

A subsequent agreement for the installation of the EV charger equipment will come before Council after the competitive bidding process for construction has been completed.

Agreement and Purchase Order with The Mobility House LLC Because of the technical complexity of the EV charging hardware and managed charging services, staff chose to acquire both the charging equipment and managed charging services in a combined solicitation. Staff began soliciting proposals for both EV charging hardware and managed charging services in February 2026. After evaluating 17 proposals, staff scored The Mobility House LLC as the top-ranked proposal. Staff subsequently negotiated an agreement and purchase order for both the EV charging hardware and managed charging services.

The proposed purchase order covers procurement of EV charging equipment that will later be installed as part of the Fleet Yard electrification project. The charging equipment was selected based on durability, cost-effectiveness, compliance with project specifications, and industryleading warranty coverage. Equipment delivery will occur in coordination with construction readiness. The proposed managed charging services (MCS) agreement covers networking, charger management, dashboard monitoring, and dynamic power management capabilities Council Agenda Report
Agreement with The Mobility House LLC for Managed Charging Services and Electric Vehicle Supply Equipment and Acceptance of Related Grant Funds [Ordinance Introduction; Resolution; Agreement]
June 30, 2026

Page 3 ends

necessary for long-term EV charging operations. The agreement includes an initial five-year term, with options for up to five one-year extensions at the City’s discretion.

The MCS agreement is for the networking of 53 chargers included in the proposed purchase order. The MCS agreement allows the City to add networking for up to 100 additional chargers on the same platform and under the same pricing structure.

Budget/Financial Information:

Hardware Costs
The estimated cost for the EV charger equipment is $549,709. Staff recommend that Council authorize a purchase order for up to $604,679.48, which includes a 10% contingency for potential equipment modifications. Grant funds appropriated by today’s item as well as past grant appropriations, Measure C Funds marked for Electrical Vehicle Infrastructure, and Fiscal Year 2026 Sustainability & Resilience Department funds will be used to purchase the EV charger equipment, as outlined in the table below.

Managed Charging Services Costs
The proposed managed charging services agreement is for 5 years with five optional 1-year extensions. Costs include:
 A one-time setup fee of $14,575.
 Annual operating expenses starting at $18,512.86, subject to escalation based on Consumer Price Index adjustments and future charger additions.

Annual operating expenses are anticipated to be allocated to vehicle users through electrical fueling rates. The annual operating number does not include the variable cost of electricity.

There are sufficient funds in the Fiscal year 2027 Sustainability & Resilience Department budget to fund the first year of the agreement. In future years, staff will include the costs of this agreement in the recommended annual budget.

Hardware Purchase Cost
Estimated Purchase Order $549,708.62
10% Contingency $54,970.86
Authorized amount $604,679.48
Hardware Purchase Funding Sources
Council Agenda Report
Agreement with The Mobility House LLC for Managed Charging Services and Electric Vehicle Supply Equipment and Acceptance of Related Grant Funds [Ordinance Introduction; Resolution; Agreement]
June 30, 2026

Page 4 ends

2025 Santa Barbara County Air Pollution Control Grant Fund $200,000.00 2023 Santa Barbara County Air Pollution Control Grant Fund $156,000.00 2026 Measure C - Electric Vehicle Infrastructure $136,471.41 2026 Sustainability and Resilience Community Resilience Fund $112,208.07
Authorized amount $604,679.48
Managed Charging Services Costs
One Time Set-up Fee $14,575
Initial Annual Operating Expenses (excludes electricity cost) $18,512.86 Funding for managed charging services costs will be collected via charging costs allocated to Departments based on EV charging sessions.

Grant Funding
The City was recently awarded $200,000 in 2025 SBCAPCD grant funds related to the purchase and installation of EV charging equipment. Staff requests that Council approve a resolution that amends the FY 2026 budget, increasing both revenue and expenditure appropriations by $200,000 in the Sustainability & Resilience Miscellaneous Grants Fund. The City has already appropriated $156,000 of 2023 SBCAPCD Grant Funds towards this purchase of EV Charging Equipment for a total of $356,000 being granted to this project.

Revenue
The agreement includes administration and brokerage of California Low Carbon Fuel Standard (LCFS) credits generated by the Fleet Yard EV chargers, with The Mobility House LLC retaining a 15% fee on revenues from the sale of these credits. LCFS revenue is estimated at $20,000– $30,000 during the first full year of operation and $30,000+ annually thereafter, depending on electricity usage and LCFS market pricing. These revenues may be used to offset electric vehicle supply equipment operating expenses or reserved for future maintenance and end-of-life equipment replacement costs. Once the project is completed, and LCFS revenue begins to be generated, staff will include the revenue appropriations and any related expenditure appropriations in future staff recommended annual budgets.

Sustainability Impact:

Council Agenda Report
Agreement with The Mobility House LLC for Managed Charging Services and Electric Vehicle Supply Equipment and Acceptance of Related Grant Funds [Ordinance Introduction; Resolution; Agreement]
June 30, 2026

Page 5 ends

The transportation sector is the City’s largest source of greenhouse gas emissions, impacting both climate and public health. The proposed EV chargers will significantly expand local charging capacity and support the transition of the City of Santa Barbara fleet to battery electric and plugin hybrid vehicles powered by carbon-free Santa Barbara Clean Energy electricity.  This project directly supports the City Council–approved Climate Action Plan, including Measure T-2, which calls for electrification or decarbonization of the City’s municipal fleet by 2035.

Additionally, the Fleet Yard is located within a low-income census tract, in an area disproportionately impacted by diesel particulate matter and cardiovascular disease indicators.

Transitioning the City’s medium- and heavy-duty fleet to zero-emission vehicles is expected to provide meaningful local air quality and public health benefits.

Environmental Review:

The agreement 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.

A copy of the agreement may be requested from the Sustainability & Resilience Department for public review by contacting [email protected].

Prepared By: Kristian Hoffland, Energy and Climate Analyst II Submitted By: Alelia Parenteau, Sustainability & Resilience Director Approved By: Kelly McAdoo, City Administrator
Ordinance No.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA APPROVING AND AUTHORIZING THE

SUSTAINABILITY AND RESILIENCE DIRECTOR TO EXECUTE

AN AGREEMENT WITH THE MOBILITY HOUSE LLC, FOR

MANAGED CHARGING SERVICES FOR ELECTRIC VEHICLE
CHARGING STATIONS.

WHEREAS, in September 2020, Council adopted a goal of carbon neutrality by 2035; and
WHEREAS, transportation-related emissions account for approximately 50 percent of the City’s overall greenhouse gas emissions; and
WHEREAS, increased adoption and utilization of zero emission vehicles is one of the most effective strategies to dramatically decrease City greenhouse gas emissions; and WHEREAS, the City electricity provider, Santa Barbara Clean Energy can provide electric vehicle charging stations with carbon free electricity; and WHEREAS, encouraging the transition from fossil fueled vehicles to zero emission vehicles throughout the community is critical to achieving the greenhouse gas emission reduction goals set forth in the City’s Climate Action Plan;

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

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, the agreement for operation and maintenance of electric vehicle charging stations between the City and The Mobility House LLC, on file with the Sustainability and Resilience Department is approved and the Sustainability and Resilience Director, or a City employee designated by the Director, is authorized to execute the agreement, in a form approved by the City Attorney, on behalf of the City of Santa Barbara.

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA BARBARA ACCEPTING GRANT FUNDS AND AMENDING RESOLUTION NO. 25-
066, ADOPTING THE BUDGET FOR FISCAL YEAR 2026 TO INCREASE REVENUE AND EXPENDITURE APPROPRIATIONS BY $200,000 IN

THE SUSTAINABILITY AND RESILIENCE DEPARTMENT FISCAL YEAR 2026 MISCELLANEOUS GRANTS FUND FOR ELECTRIC VEHICLE

CHARGING INFRASTRUCTURE
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2026; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2025;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, this Resolution adopted by City Council shall memorialize that action to amend the budget as provided herein.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT Section 1. The Council accepts Santa Barbara Air Pollution Control grant totaling $200,000.

Section 2. The Council, in accordance with provisions of Section 1205 of the Charter amend the budget for the fiscal year 2026, as adopted by Resolution No. 25-066 to increase revenue and expenditure appropriations by $200,000 in the Fiscal Year 2026 Sustainability & Resilience Miscellaneous Grants Fund budget to fund the purchase and installation of electric vehicle supply equipment.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Proposed Lease Agreement for 918 State Street with State of Mind Cafe [Ordinance Introduction; Agreement]
Recommendation:

That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving and Authorizing the City Administrator to Execute a One-Year Lease Agreement with One, Four-Year Option and One, Five-Year Option to extend the term with the Non-profit Corporation State of Mind Café for the Commercial Retail Space at 918 State Street Commencing on September 1, 2026.

Discussion:

Background
The commercial spaces at 916, 918, and 920 State Street were built as part of the City of Santa Barbara’s Lot 9 and Fiesta Five Construction Project and were leased pursuant to the Metropolitan Theatres Company’s Master Lease for over 50 years. These spaces are centrally located on the State Street Plaza and are attached to the Lobero Garage (Lot 9). Following the expiration of the Master Lease with Metropolitan Theatres Company in September of 2024, the theater space at 916 State Street was leased to the Santa Barbara International Film Festival (“SBIFF”), and the holdover subtenants in the retail spaces at 918 and 920 State Street were given the option to enter into license agreements while negotiating leases directly with the City. On October 7, 2025, Council approved a lease agreement with Game Seeker at 920 State Street. Since early 2025, the space at 918 State Street has been licensed to Consolidated Contracting for use as a construction office to support the renovation of the SBIFF Film Center. This construction work is expected to be completed by the end of June, and the license agreement with Consolidated Contracting will terminate on July 1, 2026.

Proposed New Lease with State of Mind Cafe
Agenda Item No. 8
Council Agenda Report
Proposed Lease Agreement for 918 State Street with State of Mind Cafe [Ordinance Introduction; Agreement]
June 30, 2026

Page 2 ends

Staff recommends Council execute a one-year lease agreement commencing on September 1, 2026 with the California non-profit corporation State of Mind Café, with two options to extend the lease term: the first option term is a 4-year term subject to the condition precedent that permitted improvements to the premises are completed, and the second option term is a 5-year term at the mutual agreement of both parties, which shall not be unreasonably withheld.

The initial one-year term of the proposed lease provides a period to complete the tenant improvements needed to open the coffee shop and ensures a timely activation of the space with a use that complements the Film Center and other businesses along the State Street Corridor. The proposed lease has the potential to extend into a ten-year term in total if both option terms are exercised.

State of Mind Cafe aims to establish the first fully inclusive coffee shop and artist collective in Santa Barbara, thoughtfully designed to be a welcoming space for individuals with disabilities and special needs. Rebecca Benozer, the Founder and CEO of State of Mind Cafe, has a demonstrated track record of fundraising and launching community enterprises. Staff have reviewed State of Mind Cafe’s business plan and are confident that they are able to deliver an inviting, inclusive, and financially sustainable space.

The business terms of the proposed lease are as follows:
 Initial one year term with one four-year and one five-year option to renew at a fair market rate adjustment, based on successful completion of tenant improvements to return Coffee Shop operations.
 Base Rent: $3,000 per month for year one.
 Percentage Rent: ten percent of the Tenant’s Gross Receipts above $50,000 monthly.
 Annual rent adjustment based on the Consumer Price Index (CPI).

Budget/Financial Information:

The lease is expected to generate $27,000 in revenue for the Downtown Parking Fund in Fiscal Year 2027, with increased revenues in subsequent years due to CPI adjustments and potential percentage rent.

A copy of the contract may be requested from the City Administrator’s Office for public review by contacting Nicole Grisanti at [email protected].

Prepared By: Edward France, Downtown Parking and Plaza Manager/SC Submitted By: Anthony Valdez, Deputy City Administrator Council Agenda Report
Proposed Lease Agreement for 918 State Street with State of Mind Cafe [Ordinance Introduction; Agreement]
June 30, 2026

Page 3 ends

Approved By: Kelly McAdoo, City Administrator
Ordinance No.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA

BARBARA APPROVING AND AUTHORIZING THE CITY

ADMINISTRATOR TO EXECUTE A ONE-YEAR LEASE

AGREEMENT WITH ONE, FOUR-YEAR OPTION AND ONE,

FIVE-YEAR OPTION WITH THE NON-PROFIT CORPORATION
STATE OF MIND CAFÉ FOR THE COMMERCIAL RETAIL
SPACE AT 918 STATE STREET COMMENCING ON
SEPTEMBER 1, 2026.

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

1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, the lease agreement for a one-year lease with one, four-year option and one, five-year option with the non-profit corporation State of Mind Café for the commercial retail space at 918 State Street, commencing on September 1, 2026, a copy of which is on file with the City Clerk, is hereby approved.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Waterfront Department
Subject: Proposed Lease Agreement with Chandlery on the Breakwater, Inc. [Ordinance Introduction; Agreement]
Recommendation:

That Council introduce and subsequently adopt, by reading of title only, an Ordinance of the Council of the City of Santa Barbara Approving a Five-Year Lease Agreement with One Five-Year Option to Extend the Lease Terms at the Mutual Consent of Both Parties, with Chandlery on the Breakwater, Inc., A California Corporation, at an Initial Base Rent of $2,258.80 per Month for the 483 Square Foot Office Space Located at 125 Harbor Way, Suites # 3, 4, and 5, Commencing Upon the Effective Date of the Enabling Ordinance.

Discussion:

The Chandlery on the Breakwater, Inc. better known as Chandlery Yacht Sales is a family operated yacht brokerage that has operated at 125 Harbor Way for the past twenty years, and prior to that, they operated in various locations throughout the Harbor since 1946.

They are the oldest J Boat and Catalina Yacht dealer on the West Coast and provide sales in both pre-owned and new yachts. Operated by a team of experienced yacht brokers with decades of combined experience, they currently occupy three offices in the 125 Harbor Way building immediately across from Blue Water Hunter and On The Alley.

The business terms of the proposed lease are as follows:
 Term: Five Year Lease, with one Five-Year Option that may be exercised at the mutual written consent of both parties.
 Base Rent: $2,258.80 per month, not including utilities, and taxes Agenda Item No. 9
Council Agenda Report
Proposed Lease Agreement with Chandlery on the Breakwater, Inc. [Ordinance Introduction; Agreement]
June 30, 2026

Page 2 ends

 Percentage Rent: Variable depending on type of sales activity, consistent with other yacht brokers
 Annual Rent Adjustment: Cost of Living increases based on the Consumer Price Index (CPI)
 Insurance: Chandlery on the Breakwater, Inc. is required to procure and maintain, for the duration of the lease period, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the possession, occupancy, operation, improvement, or use of the facility by the lease, their guests, agents, representatives, employees, or subcontractors.

Chandlery Yacht Sales is considered a tenant in good standing by the Department as they have no outstanding default notices on file and have been prompt with rent payments.

Budget/Financial Information:

The lease revenues are assumed in the Waterfront Department’s Fiscal Year 2026 operating budget, and will be included in future budgets.

The Harbor Commission recommended approval of the proposed lease agreement at their February 19, 2026 meeting.

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

Attachments:

1. Site Plan
Prepared By: Cesar Barrios, Waterfront Business Manager Submitted By: Mike Wiltshire, Waterfront Director
Approved By: Kelly McAdoo, City Administrator
Attachment
ORDINANCE NO.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING A FIVE-YEAR LEASE

AGREEMENT WITH ONE FIVE-YEAR OPTION TO EXTEND

THE LEASE TERMS AT THE MUTUAL CONSENT OF BOTH
PARTIES WITH CHANDLERY ON THE BREAKWATER INC.,

A CALIFORNIA CORPORATION, AT AN INITIAL BASE
RENT OF $2,258.80 PER MONTH FOR THE 483 SQUARE
FOOT SPACE LOCATED AT 125 HARBOR WAY, SUITES #
3, 4, AND 5, COMMENCING UPON THE EFFECTIVE DATE

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

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, An Ordinance of the Council of the City of Santa Barbara Approving a 5-Year Lease with one 5-year Option to Extend the Lease Terms at the Mutual Consent of Both Parties with Chandlery on the Breakwater Inc., A California Corporation, at an Initial Base Rent of $2,195.15 per Month for the 483 Square Foot Office Space Located at 125 Harbor Way, Suites # 3, 4, and 5, Commencing Upon the Effective Date of the Enabling Ordinance.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Finance Department
Subject: Revised Utility Service Discontinuation Policy [Resolution] Recommendation:

That Council adopt, by reading of title only, a Resolution Approving the Revised City of Santa Barbara Utility Service Discontinuation Policy.

Executive Summary:

The revised Utility Service Discontinuation Policy modernizes and clarifies the City’s procedures for managing delinquent utility billing accounts, ensuring compliance with Senate Bill (SB) 998 while improving consistency, customer communication, and administrative efficiency. The updated policy establishes standardized timelines and notification requirements for water and trash service discontinuation and streamlines documentation requirements related to income or medical status, while preserving all protections required by state law.. These updates enhance fairness across all customer groups, strengthen the City’s ability to manage delinquent balances, and support sustainable utility operations.

Discussion:

The City’s existing utility discontinuation procedures have become increasingly difficult for customers to navigate and for staff to administer, particularly as delinquent balances grew during several years of limited enforcement activity. A significant contributing factor was the COVID‑19 pandemic. In March 2020, in response to the Governor of California’s emergency orders prohibiting water service disconnections for nonpayment, the City paused all late fees and service shutoffs for water and trash accounts. This statewide prohibition remained in effect until 2022. As a result, the number of past due customers and overall delinquent balances increased to historically high levels. When the moratorium was lifted, staff began a structured outreach effort, and beginning in June 2023, the Utility Billing team proactively contacted customers by phone and email to encourage payment or establish payment arrangements.

Agenda Item No. 10
Council Agenda Report
Revised Utility Service Discontinuation Policy [Resolution] June 30, 2026

Page 2 ends

Building on these efforts and recognizing the need for clearer procedures, the revised Utility Service Discontinuation Policy provides an updated, consistent, and equitable framework for managing delinquent balances across both water and trash‑only billing accounts. The following data illustrates the current scope of delinquencies and underscores the need for a modernized policy:
 Water, Wastewater, and Trash Combined Utility Billing Accounts: Approximately 5% of customers, 1,350 out of 27,000, are more than 60 days past due, totaling approximately $1.4 Million in past due balances.
 Trash‑Only Billing Accounts: Approximately 10% of customers, 220 out of 2,200, are more than 60 days past due, totaling approximately $470,000 in past due balances.

These figures highlight the importance of implementing a policy that encourages timely payment, improves communication with customers, and reduces long‑term delinquencies.

Background
SB998, also known as the Water Shutoff Protection Act, was approved by the State Legislature in 2018. Its purpose is to provide consumer protections and establish statewide standards for discontinuation of residential water service due to nonpayment.

Under SB998:
 Water service cannot be disconnected until an account has been delinquent for at least 60 days.
 Customers must receive clear, timely, and multilingual notices, including notices delivered directly to the residence.
 Additional protections apply for households meeting low-income thresholds or with residents who have serious medical conditions, including extended timelines, supplemental notification steps, and continued service where statutory criteria for medical and financial hardship and alternative payment arrangements are satisfied..
 Customers must receive clear, timely, multilingual notices, including at least one notice delivered directly to the residence no less than seven business days before discontinuation of residential water service for nonpayment.

While applying SB998 over the past several years, staff identified various elements of the City’s prior policy that were difficult for customers to understand and administratively burdensome for staff to administer. Staff also recognized the need for standardized procedures for accounts that do not include water service, such as trash-only accounts, Council Agenda Report
Revised Utility Service Discontinuation Policy [Resolution] June 30, 2026

Page 3 ends

which are not governed by SB 998 but for which the City is adopting fair and consistent procedures that are appropriate to those services.

The revised policy was reviewed and approved by the City Attorney’s Office, ensuring alignment with applicable laws and City practices.

Efforts to Reduce Delinquent Balances
Leading up to this policy update, staff have undertaken several initiatives to strengthen collection efforts and support customers in resolving past due balances:
1) Enhanced Monitoring of Accounts Receivable: Monthly tracking of detailed Accounts Receivable metrics has improved the City’s ability to identify trends, intervene earlier, and support proactive outreach to customers. 2) Modernized Online Payment Tools: Transitioning to the WaterSmart platform improved the customer experience by offering a more intuitive interface, enhanced self-service options, and greater accessibility to make timely payments.
3) Discreet On-Site Notifications: In addition to mailed notices, staff implemented discreet door tags delivered directly to the residence, increasing the likelihood that customers receive and understand impending service impacts. 4) Expanded Payment Plan Options: All customers facing possible disconnection are offered 12-month payment plans, providing flexibility for households experiencing financial challenges. Since May 2023 the City has extended 1,002 payment plans to customers.
5) Low‑Income Household Water Assistance Program (LIHWAP): This program provided temporary, one‑time federal assistance to eligible residential customers. Approved by City Council in May 2023 and available through April 2024, the program helped 156 customers, by applying $410,923 toward past‑due water and wastewater balances.
6) California Water and Wastewater Arrearage Program: This program provided significant one‑time state funding to reduce pandemic‑related delinquent balances. The City applied for the program in December 2023 and received $1,374,484 in funds that were credited to 3,105 customer accounts in June 2024.
7) CommUnify: From June 2023 to April 2024, the local non-profit agency, CommUnify, helped 113 customers with funding to pay $323,769 in past due bills.

Implementation Plan
Council Agenda Report
Revised Utility Service Discontinuation Policy [Resolution] June 30, 2026

Page 4 ends

The City has developed a comprehensive plan to implement the revised policy, ensuring clear communication and consistent application.
1) Required Translations Under Civil Code §1632: The full policy will be translated into the five languages required by law—Spanish, Chinese, Tagalog, Vietnamese, and Korean—and made available on the City’s website, through the Utility Billing Office, and provided with door tag notices. In addition, notices will be provided in any other language spoken by 10 percent or more of the customers residing in the service area, as required by state law. 2) Updated Overdue and Disconnect Notices: All overdue and disconnection notices are being redesigned for improved clarity and delivered automatically through the City’s billing system, ensuring consistent and timely communication.
3) Customer Friendly Infographic: A one-page infographic has been developed to clearly outline the water service discontinuation timeline, required notices, and available payment options.
4) Customer Outreach Timeline: Staff anticipate that it will take approximately 6– 9 months to contact all customers who are currently more than 60 days past due to establish a payment plan or resolve their balance. After this transition period, the City will aim to ensure that customers do not exceed 60 days past due without initiating a payment plan or bringing their account current, restoring timely account management and helping prevent the accumulation of extended delinquencies..
5) Targeted Notification to Delinquent Customers: As part of implementation, the City will send informational letters to all customers with a past due balance over 60 days, explaining the revised policy and the need to either bring their account current or establish a payment plan to ensure continued service. This proactive, policy driven outreach will help ensure customers understand their obligations and the steps necessary to avoid interruption.

Budget/Financial Information:

Approval of the revised policy does not have a direct fiscal impact. However, by implementing clearer, more enforceable service discontinuation procedures and ensuring that customers cannot exceed 60 days past due without establishing a payment plan or bringing their account current, the City anticipates a meaningful reduction in the number of accounts with extended delinquent balances. Over time, this is expected to decrease the volume of uncollectible debt, minimize the need for write‑offs or referral to collections, and support more predictable and sustainable utility revenue streams.

Attachments:

Council Agenda Report
Revised Utility Service Discontinuation Policy [Resolution] June 30, 2026

Page 5 ends

1. Utility Service Discontinuation Policy

2. Customer Friendly Infographic
Prepared By: Lyndsay Maas, Assistant Finance Director
Submitted By: Keith DeMartini, Finance Director
Approved By: Kelly McAdoo, City Administrator
1 City of Santa Barbara
Utility Service
Discontinuation Policy
Dated
July 1, 2026
ATTACHMENT 1
2 Table of Contents
Table of Contents ........................................................................................................... 2 Past Due Utility Bill Timeline of Notifications and Service Discontinuation ........................ 3 10 Days Past Due Date: Overdue Notice Mailed............................................................ 3 50 Days Past Due Date: Service Disconnect Notice Mailed ........................................... 3 60 Days Past Due Date: Door Tag Notice Placed ........................................................... 4 70 Days Past Due Date: Service Discontinuation .......................................................... 4 Options to Avoid Service Discontinuation........................................................................ 4 Payment Plan Details ..................................................................................................... 4 Default of Payment Plan.............................................................................................. 5 Door Tag Notice Placed ........................................................................................... 5 Service Discontinuation .......................................................................................... 5 Post-Disconnection Requirements.................................................................................. 6 Returned Payments........................................................................................................ 6 Understanding the Options and Responsibilities in a Renter and Landlord Situation.......... 7 Protections for Tenants ............................................................................................... 7 Notification Requirements .......................................................................................... 7 Options for Tenants..................................................................................................... 7 Requirements for New Account Holders Taking Over Delinquent Accounts ....................... 7 Reporting....................................................................................................................... 8 Procedure for Appealing a Disputed Utility Bill ................................................................. 8 3 City of Santa Barbara
Utility Service Discontinuation Policy
At the City of Santa Barbara, we are committed to providing our residents with reliable water and trash services. To ensure that our policies are clear and fair for both residential and commercial customers, we have established a policy on utility service discontinuation for nonpayment.

This policy outlines the steps taken when an account is past due and the options available to avoid service discontinuation for residential, commercial, industrial, irrigation, recycled water, and trash services. It ensures compliance with California Senate Bill 998 (Water Shutoff Protection Act) for residential customers while providing consistent, transparent, and equitable practices across all customers.

Past Due Utility Bill Timeline of Notifications and Service Discontinuation
A utility bill is considered past due if payment is not received by the due date printed on the billing statement. When the utility bill is past due, the following steps will be taken to notify the customer and provide options to resolve the overdue amount:
10 Days Past Due Date: Overdue Notice Mailed
If an account has a balance that is 10 calendar days past the original due date, the customer will be mailed an overdue notice. This notice will remind customers of the overdue amount and provide information on how to bring the account current. A late fee will be assessed if payment is received after the due date printed on the billing statement. 50 Days Past Due Date: Service Disconnect Notice Mailed If an account has a balance that is 50 calendar days past the original due date, the account is considered delinquent, and the customer will be mailed a utility service disconnect notice. This notice will inform the customers that their water and/or trash services may be discontinued 70 calendar days after the original past due date. 4 60 Days Past Due Date: Door Tag Notice Placed
If an account has a balance that is 60 calendar days past the original due date, a door tag and copy of this policy will be placed at the service location. This will serve as a final reminder and provide the customer with the opportunity to take immediate action. The only way to avoid service disconnection at this point is to pay all past due balances in full or enter a payment plan.
70 Days Past Due Date: Service Discontinuation
If an account has a balance that is 70 calendar days past the original due date, a door tag was placed at the service location at least 10 calendar days prior and no payment plan was completed, the water and/or trash services will be discontinued.

Options to Avoid Service Discontinuation
We understand that financial hardships can happen to anyone, which is why we offer all customers the option to enter a payment plan for deferring payments. This option is available to all customers, prior to their water and/or trash services being discontinued. By entering the payment plan agreement and timely paying all amounts due, customers can avoid service interruption and manage their overdue balances.

Customers who enroll in a payment plan, pay their current bill, and make monthly installment payments on time will not have their water or trash service discontinued.

Customers who are low-income or have a medical condition do not need to provide proof of their status or condition. To avoid service discontinuation, the Customer must enter into a payment plan agreement with the City of Santa Barbara and remain current on all payments both under the payment plan and payments due for the regular monthly utility bill.

Payment Plan Details
When customers choose to enter a payment plan to avoid water and/or trash service discontinuation, it is imperative to understand the structure and requirements of the arrangement. Customers must sign a legally binding agreement, which stipulates the terms of the payment plan. Monthly installment payments for the amount specified in the agreement must be paid by the due date. In addition to the agreed-upon payment-plan payments, customers must also make their current utility bill payments. This means customers will have two amounts to pay each month: the payment plan installment and the regular monthly utility bill.
5 It is essential for customers to remain aware of their monthly payment obligations and ensure that the correct amounts are paid each billing cycle. The monthly bills will continue to show the total past due balance and do not list the monthly payment plan installment amount. If a customer is unsure what to pay each month, the Utility Billing office can provide up-to-date payment due amounts over the phone or by email.

Customers are eligible to maintain only one active payment plan at any given time. After the payment plan is finalized, modifications or extensions are not available. All existing payment plans will not be modified or extended. The maximum term of a payment plan is 12months. Payment plan terms are available in four durations of either 3, 6, 9, or 12 months, depending on the amount of the current past due balance, as outlined below:

Past Due Balance Owed Payment Plan Term Length
$0.01 to $500 3 months
$500.01 to $1,500 6 months
$1,500.01 to $3,000 9 months
Over $3,000 12 months
Customers can request a payment plan from the Utility Billing office by calling (805) 564- 5343 or emailing [email protected].

Default of Payment Plan
When a payment plan installment and current monthly bill are not paid on time, customers will receive a notification in the form of a door tag. Continued nonpayment may result in service being discontinued.

Door Tag Notice Placed
If an account under a payment plan is not current on installment and monthly bill payments, a door tag along with a copy of this policy will be placed at the service location.

This will act as a final notice that payment is required and provides the customer the opportunity to take prompt action. To avoid discontinuation of service, customers must either remit the full outstanding balance or ensure both the previous payment plan and monthly bill charges are brought up to date within the payment plan term.

Service Discontinuation
If an account under a payment plan is not current on installment and monthly bill payments, and a door tag notice has been placed at the service location with a copy of this policy, water and/or trash services will be discontinued. 6 Post-Disconnection Requirements
If water service is disconnected, it is important to know that customers are required to pay all utility bill account balances in full before service can be restored. Additionally, a water service reconnection fee will be applied. Fees can be found in the City of Santa Barbara Schedule of Penalties, Fees and Service Charges, at
https://santabarbaraca.gov/finance/budget-reports
The city recommends taking advantage of the payment plan option before service is disconnected to avoid any inconvenience and ensure continuous water service.

For information on regular and after-hours operations, customers can visit the City of Santa Barbara Utility Billing website at: https://SantaBarbaraCA.gov/Utility-Billing Returned Payments
If a payment is returned—whether made by paper check or through an electronic method such as ACH or credit/debit card—a returned payment fee will be assessed and the payment will be considered unpaid.

There are two types of returned payments, each with different procedures:

1. Returned Payment Plan Installments
When a payment made toward an approved payment plan is returned, the customer is considered to have broken the payment arrangement. In accordance with SB 998, the account becomes eligible for service disconnection. A written notice will be mailed to the customer advising them of the returned payment and providing the required SB 998 disconnection timeline. To avoid service interruption, the customer must bring the payment plan current or pay the full past-due balance.

2. Returned Standard Billing Payments
When a returned payment applies to a regular monthly bill and the account is not past due by 60 days, the customer will be mailed a notice explaining that the payment was returned and advising them to submit a replacement payment.

For all returned payments, customers must make subsequent payments using cash, cashier’s check, or money order.
7 Understanding the Options and Responsibilities in a
Renter and Landlord Situation
Protections for Tenants
California's SB 998 legislation includes specific provisions to protect tenants in rental properties when it comes to water service discontinuation. If a tenant's landlord is responsible for the water bill, certain protections apply to ensure tenants are not unfairly impacted by a past due account.

Notification Requirements
The City will notify tenants of impending disconnection by hanging a door tag and copy of this policy at the service residence at least 10 calendar days prior to disconnection. This notification serves as a final reminder and provides tenants with the opportunity to take immediate action to avoid service interruption.

Options for Tenants
Tenants will have the option to assume responsibility for the water service account, without being required to pay any amount that may be past due or pay the past due amount directly to the city to maintain service.1
Requirements for New Account Holders Taking Over
Delinquent Accounts
There are times when an account is delinquent and a new owner or tenant wishes to open a new account for the delinquent accounts service address. In some cases the new account holder will not be responsible for paying the previous account holders past due balances.

To set up a new account, the property owner or tenant shall provide a copy of a grant deed, property tax bill, or lease agreement listing all residents living at the service address to set up a new account.
1 See California Health and Safety Code section 116916
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC&sectionNum=116916 for more information regarding tenant’s rights and obligations. 8 Reporting
The city reports the number of annual disconnections of residential water service on the City’s website. It should be noted that this includes all customer water disconnections, regardless of whether the disconnection was due to financial inability or other reasons such as moving out.

Procedure for Appealing a Disputed Utility Bill
The review and appeal process for disputing a utility bill is included in this policy to ensure that all customers have easy access to the necessary information and are fully informed of their rights and options in case of a dispute. Additionally, while a utility bill is under review for an appeal, the water and/or trash services will not be discontinued, ensuring uninterrupted service during the review process.

1. Review by Finance Director
A customer who desires to dispute the accuracy of a bill for water, sewer, and/or refuse service shall, no later than ninety (90) days from the date of the original bill, submit a written request to the City’s Finance Director, or their designee, for review of the bill. Upon such a request, the customer shall be given an opportunity for a review and investigation, hearing by the Finance Director, or their designee, concerning the accuracy of the bill. The Finance Director, or their designee, shall have the authority to correct an erroneous bill.

The customer shall be given written notification of the decision regarding the dispute. All decisions of the Finance Director or their designee shall be final.

2. Discontinuance of Service for Failure to Pay
Water service will be discontinued if a bill has not been paid in full and a timely and proper appeal has not been filed or an appeal has been denied and the appeal is final.

3. Notice
Under this appeal procedure, notice by City is deemed to be given when (1) personally given to the customer, (2) enclosed in an envelope addressed to the customer with postage prepaid and deposited in the United States mail, or (3) sent to the customer via email if an email address has been provided and the original submission was made electronically. 9 This policy is intended to provide clarity and reassurance that the City of Santa Barbara is committed to supporting customers. The aim is to collaborate with customers to ensure that all city services, including water and trash, remain uninterrupted and that any concerns or disputes are addressed fairly and efficiently.

Up-to-date information such as office hours and ways to pay utility bills can be found on the city website at: https://santabarbaraca.gov/utility-billing.

If you have any questions or need further assistance, please do not hesitate to contact the city Utility Billing department via phone at (805) 564-5343.

ATTACHMENT 2

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA APPROVING THE REVISED CITY OF SANTA

BARBARA UTILITY SERVICE DISCONTINUATION POLICY
WHEREAS, The City provides water and solid waste collection services to residential and commercial customers and is responsible for administering utility billing and collection procedures; and
WHEREAS, Senate Bill (SB) 998 (the “Water Shutoff Protection Act”) established statewide requirements governing the discontinuation of residential water service due to nonpayment, including minimum notification standards, protections for low income customers and medically vulnerable households, and a minimum 60 day delinquency threshold before disconnection may occur; and
WHEREAS, The City previously adopted a Utility Service Discontinuation Policy to comply with SB998; and
WHEREAS, After several years of implementation, staff identified opportunities to modernize the Policy to improve clarity, consistency, customer communication, and administrative efficiency; and
WHEREAS, The revised Policy establishes standardized and equitable procedures for discontinuation of water service in compliance with SB 998 and for discontinuation of trash service consistent with City objectives. ; and WHEREAS, The revised Policy was reviewed and approved by the City Attorney’s Office; and
WHEREAS, The City Council desires to adopt the revised Utility Service Discontinuation Policy to support fair, transparent, and consistent administration of utility billing services.

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

1. The City Council hereby adopts the revised Utility Service Discontinuation Policy, attached hereto as Exhibit A and incorporated herein by reference.

2. The City Administrator, or designee, is authorized and directed to implement the Policy, including updating procedures, notices, customer materials, and administrative practices as necessary to ensure compliance with State law and City objectives.

3. This Resolution shall become effective immediately upon its adoption.

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Support Applying for Opportunity Zones 2.0 Designation of Qualifying Census Tracts in the Lower State Street Area and the Lower Eastside Neighborhood [Resolution]
Recommendation:

That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing Staff to Apply for Opportunity Zones 2.0 Nomination by the State of California for the Qualifying Census Tract Covering Portions of Lower State Street; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Directing Staff to Apply for Opportunity Zones 2.0 Nomination by the State of California for the Qualifying Census Tract Covering Portions of the Lower Eastside.

Discussion
The Federal Opportunity Zone (OZ) Program was established under the Tax Cuts and Jobs Act of 2017 to encourage the reinvestment of capital gains into economically distressed communities. The program offers preferential federal tax treatment for capital gains invested in qualified projects located within designated low-income census tracts. Eligible investments may include new real estate construction, rehabilitation of vacant or underutilized properties, equity investments in operating businesses, and infrastructure or energy-related projects, among others. The Opportunity Zone incentive is designed to reward long-term, patient capital that generates sustained economic growth, job creation, and community revitalization in historically underserved areas.

Only census tracts that appear on the official Qualified Opportunity Zones Eligible Tract list by the United States Department of the Treasury may be recommended. Qualified tracts must meet income eligibility thresholds of one of the following: 1) Income does not exceed 70% of Agenda Item No. 11
Council Agenda Report
Support Applying for Opportunity Zones 2.0 Designation of Qualifying Census Tracts in the Lower State Street Area and the Lower Eastside Neighborhood [Resolution]

Page 2 ends

the applicable median family income; or 2) Poverty rate is at least 20% and income does not exceed 125% of the applicable median family income.

Census Tract 06083000806 encompassing portions of the Lower Eastside and Census Tract 06083000900 encompassing portions of Lower State Street have both qualified to be considered for inclusion in the Opportunity Zones program representing the significant affordability challenges faced by many residents of the City of Santa Barbara.

Selection Process
In California, there are nearly 2,500 eligible census tracts based on the federal guidelines.

Governors from each state may select up to 25 percent of their state’s eligible census tracts. On Jule 16, 2026, Governor Gavin Newsom’s Office of Business and Economic Development (GoBiz) released a competitive application process for local jurisdictions to recommend eligible census tracts for Opportunity Zones 2.0 selection. The application process includes a request for authorizing resolutions from the agency’s governing board. Applications are due to Go-Biz by July 25, 2026. The Governor’s Office will submit their recommendations to the federal government in Fall 2026.

On January 1, 2027, The U.S. Department of the Treasury will certify nominations, and the new map will take effect. Designations will remain in place for 10 years.

Significance
Since its launch in 2017, Opportunity Zones 1.0 have led to $100 billion in investments in the 5,600 census tracts across the country. The premise of the Opportunity Zones concept is that investors, not the U.S. taxpayer, use their own capital and absorb the risk. The program encourages sustained investment in communities by incentivizing longer waiting periods for investors to capitalize on their gains.

One of the biggest beneficiaries of Opportunity Zones has been the creation of multi-family housing. According to the Economic Innovation Group, housing construction in Opportunity Zone areas increased by 70 percent, generating more than 416,000 new residential addresses between 2019 and the first quarter of 2025.

Budget/Financial Information
There is no fiscal impact to the City’s budget as a result of this action.

Council Agenda Report
Support Applying for Opportunity Zones 2.0 Designation of Qualifying Census Tracts in the Lower State Street Area and the Lower Eastside Neighborhood [Resolution]

Page 3 ends

Prepared and
Submitted by: Anthony Valdez, Deputy City Administrator Approved by: Kelly McAdoo, City Administrator
Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA DIRECTING STAFF TO APPLY FOR
OPPORTUNITY ZONES 2.0 NOMINATION BY THE STATE OF

CALIFORNIA FOR THE QUALIFYING CENSUS TRACT

COVERING PORTIONS OF LOWER STATE STREET
WHEREAS, Lower State Street encompasses a vibrant community in downtown Santa Barbara that is central to the city’s rich cultural and economic development. In 2026, the Santa Barbara City Council approved the Draft State Street Master Plan that has committed to investing significant local resources into the construction of 2,000 new housing units with an emphasis on affordable and workforce housing, the addition of sustainable active transportation infrastructure, and enhanced economic vitality; and WHEREAS, The Opportunity Zone (OZ) Program was established under the Tax Cuts and Jobs Act of 2017 to encourage the reinvestment of capital gains into economically distressed communities. The program offers preferential federal tax treatment for capital gains invested in qualified projects located within designated lowincome census tracts; and WHEREAS, Eligible investments may include new real estate construction, rehabilitation of vacant or underutilized properties, equity investments in operating businesses, and infrastructure or energy-related projects, among others. The Opportunity Zone incentive is designed to reward long-term, patient capital that generates sustained economic growth, job creation, and community revitalization in historically underserved areas; and
WHEREAS, Only census tracts that appear on the official Qualified Opportunity Zones Eligible Tract list by the United States Department of the Treasury may be recommended. Qualified tracts must meet income eligibility thresholds of one of the following: 1) Income does not exceed 70% of the applicable median family income; or 2) Poverty rate is at least 20% and income does not exceed 125% of the applicable median family income; and
WHEREAS, Census Tract 06083000900 encompassing portions of Lower State Street is qualified to be considered for inclusion in the Opportunity Zones program representing the significant affordability challenges faced by many residents of the City of Santa Barbara; and
WHEREAS, The Strategic Priorities of the Santa Barbara City Council are closely aligned with the goals of the Opportunity Zones program and the California Jobs First State Blueprint. The Council’s Strategic Priorities include:
1) Strengthen housing and community services. This priority includes a land and financial commitment of city resources to increase housing affordability and production;
2) Enhance community resiliency and safety. This priority includes investment in infrastructure improvements that support climate adaptation, sustainability, and safety for all community members;
3) Stimulate economic and community vitality. This priority includes completion of the State Street Master Plan, support of a thriving local economy, and comprehensive reform of the permit process.

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

1. Staff is authorized and directed to apply for Opportunity Zones 2.0 nomination by the State of California and take all actions consistent with this resolution necessary or convenient for the implementation of this program.

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA DIRECTING STAFF TO APPLY FOR
OPPORTUNITY ZONES 2.0 NOMINATION BY THE STATE OF

CALIFORNIA FOR THE QUALIFYING CENSUS TRACT

COVERING PORTIONS OF THE LOWER EASTSIDE
WHEREAS, The Milpas neighborhood is vibrant and historic community in the city’s Lower Eastside that is a cornerstone of the Latino community. Latinos comprise 36 percent of the city-wide population. In recent years, the city has invested in the Lower Eastside Safety Enhancements Project to improve infrastructure in partnership with the State of California and has invested in an Economic Development program that focuses on supporting critical commercial cooridors such as the one along Milpas Street; and WHEREAS, The Opportunity Zone (OZ) Program was established under the Tax Cuts and Jobs Act of 2017 to encourage the reinvestment of capital gains into economically distressed communities. The program offers preferential federal tax treatment for capital gains invested in qualified projects located within designated lowincome census tracts; and WHEREAS, Eligible investments may include new real estate construction, rehabilitation of vacant or underutilized properties, equity investments in operating businesses, and infrastructure or energy-related projects, among others. The Opportunity Zone incentive is designed to reward long-term, patient capital that generates sustained economic growth, job creation, and community revitalization in historically underserved areas; and
WHEREAS, Only census tracts that appear on the official Qualified Opportunity Zones Eligible Tract list by the United States Department of the Treasury may be recommended. Qualified tracts must meet income eligibility thresholds of one of the following: 1) Income does not exceed 70% of the applicable median family income; or 2) Poverty rate is at least 20% and income does not exceed 125% of the applicable median family income; and
WHEREAS, Census Tract 06083000806 encompassing portions of the Lower Eastside is qualified to be considered for inclusion in the Opportunity Zones program representing the significant affordability challenges faced by many residents of the City of Santa Barbara – particularly along the Milpas cooridor; and WHEREAS, The Strategic Priorities of the Santa Barbara City Council are closely aligned with the goals of the Opportunity Zones program and the California Jobs First State Blueprint. The Council’s Strategic Priorities include:
1) Strengthen housing and community services. This priority includes a land and financial commitment of city resources to increase housing affordability and production;
2) Enhance community resiliency and safety. This priority includes investment in infrastructure improvements that support climate adaptation, sustainability, and safety for all community members;
3) Stimulate economic and community vitality. This priority includes completion of the State Street Master Plan, support of a thriving local economy, and comprehensive reform of the permit process.

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

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing [Resolution; Agreement]
Recommendation:

That Council:

A. Authorize the Deputy City Administrator to execute a Local Housing Trust Fund grant agreement subject to approval as to form by the City Attorney, in the amount of $400,000 to be awarded to Habitat for Humanity of Southern Santa Barbara County for the development of affordable housing at 710 E. Cota Street in downtown Santa Barbara; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 25-066, Adopting the Budget for Fiscal Year 2026, to Approve an Increase in Expenditure Appropriations in the Local Housing Trust Fund in the Amount of $400,000 to Fund a Grant Agreement with Habitat For Humanity of Southern Santa Barbara County for the Development of Affordable Housing at 710 E. Cota Street.

Background:

Habitat submitted a funding proposal to the City Administrator’s Office of Housing and Community Vitality and, following staff’s review of the request and confirmation of available funding within the Local Housing Trust Fund (LHTF), the proposal was forwarded to the City Administrator and the Community Development Director for the compliance review Agenda Item No. 12
Council Agenda Report
Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing [Resolution; Agreement] June 30, 2026

Page 2 ends

required under LHTF Ordinance No. 6138. Staff determined that the proposal is consistent with the Eligible Uses outlined in the ordinance. Accordingly, the request is being forwarded to the City Council for consideration of financial assistance.

Discussion:

Habitat also proposes to construct a new, two bedroom, one bathroom accessory dwelling unit on the same parcel pursuant to AB 345 (2021), creating an additional deed restricted affordable homeownership opportunity. This infill development supports desired density and aligns with the City’s goals for expanding affordable ownership options for working families without displacement or largescale redevelopment.

The Finance Committee will consider this proposal at the June 30, 2026 meeting.

Council Agenda Report
Local Housing Trust Fund Grant Agreement with Habitat for Humanity of Southern Santa Barbara County for the Development of Affordable Housing [Resolution; Agreement] June 30, 2026

Page 3 ends

Budget/Financial Information:

Environmental Review:

Approval of the grant agreement is not a “project” for purposes of CEQA as there is no direct or indirect physical change to the environment.

A copy of the agreement may be requested from Housing and Homeless Services for public review by emailing [email protected]
Prepared By: Caroline Paine, Housing and Homeless Services Manger Submitted By: Anthony Valdez, Deputy City Administrator Approved By: Kelly McAdoo, City Administrator
Resolution No.

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

INCREASE IN EXPENDITURE APPROPRIATIONS IN THE

LOCAL HOUSING TRUST FUND IN THE AMOUNT OF
$400,000 TO FUND A GRANT AGREEMENT WITH HABITAT

FOR HUMANITY OF SOUTHERN SANTA BARBARA COUNTY

FOR THE DEVELOPMENT OF AFFORDABLE HOUSING AT
710 E. COTA STREET.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Second Amendment to Professional Services Agreement for an Extension of The Loop Shuttle Program on State Street with SWEEP Inc. [Agreement]
Recommendation:

That Council authorize the City Administrator to execute a second amendment to increase the amount of Santa Barbara City Agreement No. 22500235 with SWEEP, Inc., by $440,305 for a total contract amount of $733,735 for transportation services from Cabrillo to Sola Street along State Street.

Discussion:

The City entered into an agreement with SWEEP, Inc., on May 16, 2025. Contracted services included golf cart transportation along State Street from Cabrillo Boulevard at Stearns Wharf to State Street and Sola Street and back (in a loop), aimed at improving mobility along State Street for residents and tourists. Service originally consisted of three electric golf carts, one of which was accessible, and all golf carts traveled together to ensure an ADA accessible cart was always available. The contract was widely popular with over 16,000 riders during the first six months and over 700 people using the free service each weekend.

Ridership during the pilot has reflected a balanced mix of visitors and residents, with approximately 53 percent of riders being local and 47 percent visiting from out of town.

Shopping on State Street accounts for the largest share of trips at approximately 36 percent, followed by sightseeing at 25 percent, food and drink at 23 percent, and entertainment at 14 percent, with the remaining 2 percent traveling for other purposes.

The Loop also serves riders requiring ADA accommodation, including wheelchair users and riders relying on support animals, mobility aides, or assistance for visual impairment, providing service to approximately 50 such riders each weekend.

On November 18, 2025, the City Council approved an amendment to the Professional Services Agreement extending the program for an additional six months and adding a Agenda Item No. 13
Council Agenda Report
Second Amendment to Professional Services Agreement for an Extension of The Loop Shuttle Program on State Street [Agreement]
June 30, 2026

Page 2 ends

fourth shuttle to the fleet. The pilot has performed well: shuttles frequently reach capacity, and riders have grown increasingly familiar with the system's stops and timing. Staff will continue pursuing measures to raise public awareness of the program, including additional advertising and improvements to make stop signage clearer and more visible.

The Loop complements the Metropolitan Transit District (MTD) electric downtown shuttle service, which operates on Anacapa and Chapala Streets and on lower State and Cabrillo Streets during the summer months. Operating on the portion of State Street closed to vehicular traffic, The Loop connects the beach to downtown Santa Barbara and offers an alternative to walking or biking for those travelling in the State Street corridor.

The Loop remains a pilot program and will be evaluated in greater detail once the State Street Master Plan is finalized and permanent funding for a State Street shuttle service becomes available. Establishing a permanent program will require a Request for Proposals (RFP) process, through which the City anticipates receiving a range of proposals.

Based on SWEEP Inc.’s demonstrated performance on State Street with operating the free shuttle service since May 2025, the City of Santa Barbara would like to continue to offer this free service to members of the public for up to one additional year, through June 30, 2027. The requested additional $440,305 would allow for the extension of the pilot program, which has been largely successful. Additional details for the updated scope of work are included in a revised project description attached to the second amendment and are outlined below.

Sweep Inc (Consultant) will provide transportation services from Cabrillo to Sola Street along State Street. The fleet includes four GEM carts (2 E6 + 2 ADA) to enhance accessibility and coverage along State Street and Cabrillo. Service runs Thursday–Sunday, 12 PM – 7 PM, with one E6 and one ADA cart starting at Arlington and another pair at State & Cabrillo, traveling in opposite directions and crossing mid-route.

Extension Period: June 1, 2026 – June 30, 2027
Fleet: 4 GEM carts (2 E6 + 2 ADA)
Service Hours: Thurs–Sun | 12 PM – 7 PM
Route Pattern: Cross-loop — one E6 + one ADA start from each end (Arlington and State Street & Cabrillo and State Street), travel in opposite directions and continue to opposite ends.

Council Agenda Report
Second Amendment to Professional Services Agreement for an Extension of The Loop Shuttle Program on State Street [Agreement]
June 30, 2026

Page 3 ends

Budget/Financial Information:

The recommended second amendment of $440,305 to the Professional Services Agreement with SWEEP, Inc. is funded with both Fiscal Year 2026 and Fiscal Year 2027 Measure C appropriations. Of this amount, $50,305 is needed for services provided in Fiscal Year 2026 and is available through existing Measure C appropriations. The remaining $390,000 is for services to be provided in FY2027 and is included in the Fiscal Year 2027 Measure C budget for the Loop Shuttle Pilot Program. This portion of the amendment is subject to the availability of appropriated funds and will be encumbered once the new fiscal year budget is available. No additional appropriation is required.

A copy of the second amendment is available for public review. Please contact the City Clerk’s Office at [email protected] to request a copy.

Sustainability Impact:

The Loop advances the City's climate and mobility goals by operating an all-electric, zeroemission GEM cart fleet that reduces private vehicle trips around the State Street corridor area, reducing greenhouse gas emissions and easing downtown parking demand due to park once philosophy and ability for someone to use a shuttle to go from the waterfront to the Arlington Theater downtown along State Street. The service demonstrates its capacity to shift short trips away from single-occupancy vehicles while reinforcing the economic vitality of State Street, where roughly 36% of riders travel for shopping and 23% for food and drink. Continuing the four-cart fleet, including two accessible vehicles, deepens the program's commitment to equitable, low-carbon mobility by ensuring accessible service remains continuously available to the approximately 50 riders served each weekend who require wheelchair, mobility, visual, or support-animal accommodation. Extending the pilot sustains these environmental, accessibility, and economic benefits and supports the City's broader objectives for a connected, sustainable, and inclusive downtown.

Prepared By: Tess Harris, State Street Master Planner
Submitted By: Anthony Valdez, Deputy City Administrator Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Public Works Department
Subject: Contract Amendment for Design Services for the Taxiways E, A3, and A5 Pavement Reconstruction Project [Agreement]
Recommendation:

That Council authorize the Public Works Director to execute the First Contract Amendment with Kimley-Horn and Associates, Inc., for additional engineering design services for the Taxiways E, A3, and A5 Pavement Reconstruction Project, Contract No. 28792, in the amount of $48,500, for a total expenditure authority of $339,130.

Discussion:

Background
On September 30, 2025, City Council approved a design contract with Kimley-Horn and Associates, Inc. (Kimley-Horn) to provide engineering services for the Taxiways E, A3, and A5 Pavement Reconstruction Project (Project). During the design process, the Project team considered alternatives and incorporated recommendations from a geotechnical investigation. The final recommended pavement repairs include reconstructing Taxiway E for a full structural restoration, rehabilitating Taxiway A3 for a comprehensive repair of the damaged pavement surface, and applying a slurry seal coat to Taxiway A5. Although the scope is primarily maintenance and repair in nature, integrating new pavement areas into the reconstruction of Taxiway E became a critical design change to operationally enhance aircraft safety and circulation.

Current Status
These new pavement areas, identified during design and not part of Kimely-Horn’s original scope of work, reshape the taxiway geometry of Taxiway E to better accommodate the Airport’s current and growing demand for larger aircraft to safely maneuver and improve the overall connection with the Airport’s Southfield area.

Integrating the recommended pavement repairs into the design requires changes to other impacted Airport infrastructure, such as electrical infrastructure related to airport lighting and storm drain infrastructure to maintain adequate drainage. Alterations to the taxiway Agenda Item No. 14
Council Agenda Report
Contract Amendment for Design Services for the Taxiways E, A3 and A5 Pavement Reconstruction Project [Agreement]
June 30, 2026

Page 2 ends

geometry from the new pavement areas also modify the construction phasing approach for the reconstruction of Taxiway E. These changes to the Project’s scope have resulted in additional design services required by Kimley-Horn to deliver bid-ready construction documents.

The Project’s final design was completed in April 2026 and staff solicited for construction bids following the standard low-bid procurement method. Construction is anticipated to begin in September 2026 and is estimated to last seven months, with Project completion anticipated in March 2027, dependent on weather.

Budget/Financial Information:

Funding
The Project’s design and construction phases qualify for federal funding assistance administered by the Federal Aviation Administration (FAA) through the Airport Improvement Program (AIP). On September 2, 2025, the Airport executed AIP Grant Agreement 3-06-0235-080-2025 for the original design contract and related design costs in the amount of $322,193, with the federal share of 90.66 percent and the City’s local share of 9.34 percent. The executed grant allows increases to the grant agreement up to 15 percent of the grant’s maximum obligation. Currently, the Airport has submitted a request to increase the maximum grant obligation by 10 percent, or $32,219, for a total design grant amount of $354,412.

The original design contract’s authorized extra services allowance amount of $29,063, intended for unanticipated additional design services, has not yet been spent on Project expenditures, and without additional authorization, is not enough to cover the recommended Amendment of $48,500 for the additional design outside of Kimley-Horn’s original scope. The additional grant funds requested from the FAA for the design grant increase of $32,219 will supplement the unspent extra services allowance of $29,063, for a new extra services allowance of $61,282 to cover the design amendment of $48,500, plus any other potential design amendments needed from Kimley-Horn pending the bid results and any other related design expenses eligible under the grant agreement.

There are sufficient existing expenditure appropriations in the Fiscal Year 2026 Airport Capital Grants Fund to cover the additional encumbrance in the amount of $32,219 needed for the contract Amendment. The following table summarizes all design costs and construction costs for an estimated total Project cost.

Estimated Total Project Cost
*Cents have been rounded to the nearest dollar in this table.

Council Agenda Report
Contract Amendment for Design Services for the Taxiways E, A3 and A5 Pavement Reconstruction Project [Agreement]
June 30, 2026

Page 3 ends

Tasks Grant Share City Share Total Cost
City Permit Costs $2,266 $234 $2,500
Design Contract(Kimley-Horn) $263,485 $27,145 $290,630
Recommended Design Contract
Amendment (Kimley-Horn)
$43,970 $4,530 $48,500
Design Subtotal $309,721 $31,909 $341,630
Estimated Construction Contract $8,612,700 $887,300 9,500,000 Estimated Construction Management $543,960 $56,040 $600,000 Construction Subtotal $9,156,660 $943,340 $10,100,000
Project Total $9,466,381 $975,249 $10,441,630
Council Agenda Report
Contract Amendment for Design Services for the Taxiways E, A3 and A5 Pavement Reconstruction Project [Agreement]
June 30, 2026

Page 4 ends

Sustainability Impact:

For the current design phase of this Project, there are no measurable sustainability impacts associated with engineering design services or the additional design services associated with the Amendment.

Environmental Review:

The Project’s final design is subject to California Environmental Quality Act (CEQA) review to address the significant scope changes identified above, as well as Coastal Zone review requirements. The FAA will also determine whether the Project qualifies for a Categorical Exclusion under the National Environmental Policy Act (NEPA). A CEQA Notice of Exemption and a NEPA Categorical Exclusion will be filed prior to the award of the construction contract.

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

Prepared By: Ashleigh A. Sizoo, P.E., City Engineer/PD/sk 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 30, 2026
To: Mayor and Councilmembers
From: Library Department
Subject: Professional Services Agreement Between the Library and Family Service Agency of Santa Barbara for Community Support Services and Outreach [Agreement]
Recommendation:

That Council authorize the Library Director to execute a City Professional Services Agreement in the amount of $155,619.92 with the Family Service Agency of Santa Barbara to provide 1.3 full-time equivalent Community Support Specialist position hours that work in collaboration with Library staff through July 31, 2027.

Discussion:

By way of the proposed agreement, Family Service Agency of Santa Barbara (FSA) provides contracted staff who proactively engage individuals experiencing financial and/or housing insecurity at the Library and provide information about social services, arrange crisis intervention services and mental health assessments, and who are otherwise available for one-to-one appointments. These appointments provide assistance such as with finding a place to rent, completing Santa Barbara Housing Authority Applications or Mexican Consulate Applications, submitting CalFresh applications or medical/health care applications, or registering for affordable internet and utilities services. Contracted staff are also able to make referrals to community resources that support access to housing, social, educational, mental health, and medical services and have completed Homelessness Management Information System (HMIS) training to be able to view individuals in the system, their case worker details, and update individuals as document ready. In Fiscal Year 2026, FSA’s contracted staff at the Library have completed 270 appointments with 196 unique individuals (a 30% increase from Fiscal Year 2025). These appointments assisted 69 people with obtaining or navigating processes regarding healthcare or wellness, 59 people with meeting basic needs, 47 with obtaining social support, 43 with securing housing, 23 with obtaining vital documents, 15 with obtaining financial assistance, and 111 with various other needs.

Agenda Item No. 15
Council Agenda Report
Professional Services Agreement Between the Library and Family Service Agency of Santa Barbara for Community Support Services and Outreach [Agreement] June 30, 2026

Page 2 ends

FSA has been contracted by the City to provide the aforementioned community support services at the Library since Fiscal Year 2022. The agreement being brought forward for City Council approval would ensure that these services can continue to be provided through July 31, 2027.

Budget/Financial Information:

The total cost for an annual contract with Family Service Agency of Santa Barbara is $155,620 and is budgeted for within the Library’s Fiscal Year 2027 Expenditure General Fund Budget.

A copy of the contract/ agreement may be requested from the Library for public review by emailing [email protected].

Prepared By: Kathrin Rosenberger, Administrative Analyst Submitted By: Brandon Beaudette, Library Director
Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Waterfront Department
Subject: Waterfront Department Revocable License Agreement with Gelato Garden, a California Limited Liability Company, to Property Located at 11 Garden Street [Agreement]
Recommendation:

That Council approve a revocable license agreement with Gelato Garden, a California Limited Liability Company, for property located at 11 Garden Street.

Background:

The City of Santa Barbara owns the property located at 11 Garden Street. After conducting a Request for Proposals (RFP) process in March 2026, Gelato Garden, LLC, was selected to lease the premises and operate Gelato Garden.

The City and Gelato Garden, LLC are currently negotiating a long-term master lease, under which the City will serve as landlord and Gelato Garden, LLC will be the tenant of the property. The leasing process is underway and requires approval from the City Council, followed by adoption of an Ordinance. The lease will not become effective until the Ordinance is adopted and the thirty-day referendum period has concluded.

Due to the existing condition of the premises and the short timeline to start operating before the summer season begins, Gelato Garden, LLC needs to access and occupy the premises before the end of the referendum period to carry out interior renovations, such as painting, flooring, and installation of equipment and furniture.

During the license period, the space won’t be open to the public and no events, whether private or public, will be allowed. The license allows early access for construction only, is revocable, carries insurance obligations, and automatically ends when the lease begins, Agenda Item No. 16
Council Agenda Report
Waterfront Department Revocable License Agreement with Gelato Garden, a California Limited Liability Company, to Property Located 11 Garden Street [Agreement] June 30, 2026

Page 2 ends

thereby serving as a temporary bridge between selection of the tenant and the effective date of the master lease.

Discussion:

Gelato Garden, LLC proposes to initially occupy the premises through a license agreement with the City. Basic terms of the proposed license agreement are summarized as follows:
• Term: This Revocable License Agreement begins upon City Council approval and ends at the earlier of the start of the Master Lease or, if not commenced, when the Lease is deemed ineffective by the City and written notice is given to Gelato Garden, LLC, unless otherwise terminated by mutual agreement. • Base Rent: Rent is not required for the duration of this Revocable License Agreement.
• Insurance: Gelato Garden, LLC is required to procure and maintain, for the duration of the license period, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the possession, occupancy, operation, improvement, or use of the facility by the Licensee, their guests, agents, representatives, employees, or subcontractors.

Council Agenda Report
Waterfront Department Revocable License Agreement with Gelato Garden, a California Limited Liability Company, to Property Located 11 Garden Street [Agreement] June 30, 2026

Page 3 ends

Budget/Financial Information:

There will be no financial impact for the City throughout the term of this revocable license agreement.

The Harbor Commission recommended approval of Master Lease with Gelato Garden, LLC, at their May 21, 2026, meeting.

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

Prepared By: Cesar Barrios, Waterfront Business Manager Submitted By: Mike Wiltshire, Waterfront Director
Approved By: Kelly McAdoo, City Administrator
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Lease Drawing
Exhibit A
DATE 1/23/2018 APPROVED BY: P.Hen_!Y
1---------------j ADDRESS: 1 Garden Street
City of Santa Barbara
Waterfront Department
DRAWN BY: T.Lawler
SHEET NO. 2of2
DRAWING NO.
3080-003
Attachment
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Information Technology Department
Subject: Agreement with RingCentral for Citywide Phone System Modernization [Agreement]
Recommendation:

That Council:

A. Authorize the Information Technology Director to execute a five-year agreement with RingCentral in the amount of $1,046,284 for hardware, licenses, maintenance, and support for the citywide phone system modernization; and authorize up to $104,628 that may result in contract change orders, for a total expenditure authority of $1,150,912; and
B. Authorize the Information Technology Director to execute a Professional Services Agreement with RingCentral in the amount of $149,076 for implementation services for the citywide phone system modernization; and authorize up to $14,907 that may result in contract change orders, for a total expenditure authority of $163,983.

Discussion:

The City’s legacy private branch exchange (PBX) phone system has exceeded its functional lifespan and is deemed end of life from the manufacturer. This means the manufacturer will no longer sell, maintain, or actively update the product and makes the system increasingly unreliable due to potential hardware failures, security, limited vendor support, and limited replacement parts.

In addition, the current PBX phone system does not provide functionality that is common with a modern cloud based voice over internet protocol (VoIP) phone system. This includes lower costs, easier scalibility, increased reliability and resilience, improved mobility, improved features, reduced Information Technology (IT) workload, unified communications, and an acceptable security posture.

The adoption of a cloud-based VoIP system eliminates the need for costly PBX hardware, onsite maintenance, and dedicated phone lines. Instead, the City pays a predictable annual fee for each phone extension, streamlining budgeting and reducing unexpected Agenda Item No. 17
Council Agenda Report
Agreement with RingCentral for Citywide Phone System Modernization [Agreement] June 30, 2026

Page 2 ends

expenses. The process of adding or removing users is efficient and does not require the purchase of additional hardware.

Cloud providers deliver geo-redundant infrastructure, automatic failover, and integrated disaster recovery capabilities. In the event that an office experiences a power outage, calls can be seamlessly routed to mobile devices or alternate locations, ensuring uninterrupted communication. Employees benefit from the flexibility to answer calls from any location using mobile or desktop applications, supporting hybrid and remote work models without added complexity.

The system offers advanced features such as call queues, auto attendants, voicemail-toemail, call recording, analytics, and integration with Microsoft Teams. There is no physical PBX hardware onsite that requires maintenance, patching, or replacement, as updates and security enhancements are managed automatically in the cloud.

Selection:

The IT Department, in collaboration with staff from multiple departments, conducted a thorough evaluation of six cloud-based phone system solutions. Their assessment prioritized reliability, security, cost efficiency, and seamless integration with Microsoft 365.

To ensure the selected system met the City's needs, these team members also participated in a comprehensive pilot project, rigorously testing the finalist's functionality in real-world scenarios.

The team established that RingCentral offers the best alignment with City operational needs. RingCentral was chosen for its commitment to system resiliency and high uptime, ensuring reliable communication across all departments. The platform provides a comprehensive set of features, including softphones, mobility options, call queues, and robust analytics. Additionally, RingCentral offers competitive pricing with a predictable subscription model, which supports efficient budgeting. These strengths were validated through successful pilot testing conducted by multiple departments, confirming the solution’s effectiveness and suitability for the City's needs.

Purchasing:

This purchase is being made using the National Association of State Procurement Officials (NASPO), NASPO-ValuePoint Master Agreement #AR2505 and California Cooperative Agreement #7-17-70-40-03. This contract was competitively bid and awarded on a national level. It meets all state and local laws for open competition.

Therefore, further competitive bidding is not required.

Budget/Financial Information:

Council Agenda Report
Agreement with RingCentral for Citywide Phone System Modernization [Agreement] June 30, 2026

Page 3 ends

This first year of the contract and implementation services ($318,995) are funded through IT capital budget allocations. Subsequent years of hardware, licenses, maintenance, and support ($248,975) will be rate funded through IT operating fund allocations spread across all City operations and funds. All agreements with RingCentral will not exceed $1,314,895.

Year Service Cost
1 Implementation $ 163,983
1 Hardware, licenses, maintenance, & support $ 155,012
2 Hardware, licenses, maintenance, & support $ 248,975
3 Hardware, licenses, maintenance, & support $ 248,975
4 Hardware, licenses, maintenance, & support $ 248,975
5 Hardware, licenses, maintenance, & support $ 248,975
$ 1,314,895
Sustainability Impact:

The implementation of a cloud‑based phone system reduces the City’s environmental footprint by eliminating on‑premises phone hardware, lowering energy consumption, and reducing the need for specialized replacement components. The shift to softphones further minimizes physical device waste.

A copy of the agreement may be requested from Information Technology for public review by emailing [email protected]
AB 339 Compliance: Staff has completed all applicable employee organization notification requirements pursuant to Government Code Section 3505.8 (AB 339).

Prepared and
Submitted By: Justin Cure, Information Technology Director Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Public Works Department
Subject: Agreement with City of Goleta for the Operation and Maintenance of Shared Traffic Signals [Agreement]
Recommendation:

That Council authorize the Public Works Director to enter into an Agreement with the City of Goleta for the operation and maintenance of shared traffic signals.

Discussion:

There are seven traffic signals situated near the jurisdictional boundaries of the City of Santa Barbara (City) and the City of Goleta. Currently, there is an Agreement between the two Cities, with the City of Goleta taking the lead for the operation and maintenance of these traffic signals and billing the City for its proportional share of those costs.

Staff for both Cities propose updating the current arrangement by executing a new Agreement stating that the City of Santa Barbara will operate and maintain four traffic signals along the north side of the City’s Airport, and the City of Goleta will operate and maintain the other three traffic signals, as shown in the table below.

Agenda Item No. 18
Council Agenda Report
Agreement with City of Goleta for the Operation and Maintenance of Shared Traffic Signals [Agreement]
June 30, 2026

Page 2 ends

List of Signalized Intersections Goleta’s
Responsibility
Santa Barbara’s
Responsibility
Hollister Ave at Los Carneros Rd Yes No
Hollister Ave at Los Carneros Way No Yes
Hollister Ave at Aero Camino No Yes
Hollister Ave at S. La Patera Ln No Yes
Hollister Ave at Frederick Lopez Rd No Yes
Hollister Ave at Fairview Ave Yes No
Los Carneros Rd at Discovery Dr Yes No
Budget/Financial Information:

The City’s operation and maintenance of the four traffic signals listed above can be absorbed into the City’s existing traffic signal program, resulting in minor cost savings by eliminating reimbursements to the City of Goleta. Savings will vary by year depending on repairs needed but will typically be about $2,000 annually.

Environmental Review:

Entering into an Agreement with the City of Goleta for the Operation and Maintenance of Shared Traffic Signals 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. Future actions that meet the definition of a project would be subject to CEQA.

Prepared By: Ashleigh A. Sizoo, P.E., City Engineer/DB/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 30, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Agreement with Townsend Public Affairs, Inc. for Legislative Advocacy Services [Agreement]
Recommendation:

That Council authorize the City Administrator to execute an agreement, subject to approval as to form by the City Attorney’s Office, with Townsend Public Affairs, Inc. in an amount not to exceed $108,000 covering the period from July 1, 2026 to June 30, 2027.

Discussion:

Townsend Public Affairs, Inc. (TPA) is a state and federal legislative advocacy and grant writing firm that provides lobbying and funding services to public agencies and nonprofit organizations throughout California. TPA has successfully advanced over 165 legislative and regulatory proposals into law and secured over $3.3 billion in competitive grants and appropriations on behalf of their clients. With a team of nineteen registered state and federal legislative and funding advocates, TPA has the breadth and depth of experience and the ability to deploy as many advocates as needed to maximize success for the City.

TPA has an extensive client list that includes city and county governments, water and sanitation districts, transportation districts, community colleges districts, as well as museums, science centers, and cultural facilities. The firm’s areas of specialization include local governance, transportation policy and infrastructure, housing and economic development, parks and community facilities, public safety, budget, and finance. More California public agencies have retained TPA to represent them in Washington, D.C. than any other advocacy firm.

The City has been represented by Townsend Public Affairs, Inc. in Sacramento since 2023 and expanded this representation to the federal level in January 2025. Given the complexity of legislative issues that the City is confronting along with the fiscal challenges that will continue to impact the City’s ability to provide the highest quality of services, it is advantageous to have representation at the state and federal level to ensure that our Agenda Item No. 19
Council Agenda Report
Agreement with Townsend Public Affairs, Inc. for Legislative Advocacy Services [Agreement]
June 30, 2026

Page 2 ends

interests and needs are considered when policymakers are executing legislative and budgetary decisions.

TPA has and will continue to work closely with Mayor and Council, the Council Committee on Legislation, as well as City department leadership to advance the City’s priorities with specific emphasis on housing and land use, homelessness, climate resilience and sustainability, public safety, e-bike safety, fire prevention and coordination, as well as artificial intelligence. Additionally, TPA worked with City staff earlier this year to update the City’s Legislative Platform to better align with the goals and objectives in the citywide Strategic Plan. The new Legislative Platform was adopted by City Council on April 21, 2026.

The City Administrator’s Office believes that retaining this level of expertise to represent the City’s interests on the state and federal level has direct tangible benefits in both the development of sound policy, as well as the pursuit and appropriation of much-needed financial resources to sustain service delivery and meet legislative mandates.

Budget/Financial Information:

The total cost of $108,000 to retain Townsend Public Affairs, Inc. for legislative advocacy services will be paid through the City Administrator’s Office budget for FY 2027 within existing budget appropriations.

The agreement is available for review by contacting Nicole Grisanti, Administrator’s Office Manager, at [email protected].

Prepared and
Submitted By: Barbara Andersen, Sr. Assistant to the City Administrator Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Department of Water Resources
Subject: Water Supply Update
Recommendation:

That Council receive an update on the City of Santa Barbara’s water supply condition.

Discussion:

This water supply update provides an overview and analysis of the City of Santa Barbara’s (City) water supplies at the midpoint of Water Year 2026 (October 1, 2025 – September 30, 2026). The winter of 2025/2026 brought above average rainfall to Santa Barbara, but below average snowpack in the Sierra Nevada. Despite below average snowpack, water levels in state reservoirs remain high, while local reservoirs have filled and spilled. The City has sufficient water supplies to meet anticipated demands for the next three years, using a combination of water from Lake Cachuma, Mission Tunnel infiltration, desalination, and recycled water.

Water Year 2026 began on October 1, 2025, and ends September 30, 2026. Santa Barbara typically receives most of its rainfall between January and March. At the midpoint of each water year, staff updates the City’s water supply assumptions for the rest of the water year to reflect winter precipitation and current water supply status. The City’s water supply planning strategy seeks to meet customer demands through the utilization of its diverse mix of water supplies. The City has one of the most diverse water supply portfolios in the state, including surface water from the Santa Ynez River stored in Lake Cachuma and Gibraltar Reservoir, groundwater from local groundwater basins and Mission Tunnel intrusion, imported State Water Project water, desalinated water from the Charles E.

Meyer Desalination Plant, and recycled water. A brief update on the status of each of the City’s water supplies for the first half of the water year, October 1, 2025, through March 31, 2026, is described below:
 Lake Cachuma: The Cachuma Member Units, including the City, were granted a 100 percent Cachuma allocation by the U.S. Bureau of Reclamation for Water Year 2026; the City’s allocation is 8,277 acre-feet (AF). Bradbury Dam spilled December Agenda Item No. 20
Council Agenda Report
Water Supply Update
June 30, 2026

Page 2 ends

31, 2025, and the City lost approximately 12,260 AF of stored carryover water. The dam continued to spill, and surplus conditions remained through March 20, 2026.

The loss of carryover water is offset by utilizing surplus water; while in surplus conditions, all Cachuma water used by Cachuma Member Units is not deducted from the current year allocation. The City utilized 955 AF of surplus water and any unused allocated water for the remainder of the water year can be stored as carryover water starting in Water Year 2027. For the first half of Water Year 2026, rainfall at Lake Cachuma was 161 percent of a normal water year and the lake supplied about 52 percent (2,763 AF) of total demand.
 Gibraltar Reservoir: A full Gibraltar reservoir can supply approximately 40 percent of the City’s annual demands. Staff prioritizes using all available water in Gibraltar each water year, emptying the reservoir as much as possible in preparation to capture of the next winter’s rains. At the beginning of Water Year 2026, Gibraltar was 21 percent full, then winter rains replenished Gibraltar and the reservoir spilled starting December 24, 2025. Spill conditions persisted for the first half of Water Year 2026, and rainfall was 138 percent of a normal water year.

Gibraltar has supplied 19 percent (1,014 AF) of total water demand for the first half of Water Year 2026. Staff intends to maximize use of Gibraltar water to meet customer demands and maximize energy production at the City’s hydroelectric facility.
 Mission Tunnel: Groundwater intrusion in the tunnel has remained steady compared to the prior three water years. Mission Tunnel infiltration has provided 12 percent (637 AF) of the City’s water demand for the first half of Water Year 2026.
 Groundwater: The City continues to rest its groundwater basins and did not use any groundwater supply in the first half of Water Year 2026. Resting the groundwater basins for the last eight years, coupled with heavy rains in the last three water years, has allowed water levels in Storage Unit 1 to recover to predrought levels. Seawater intrusion in Storage Unit 1 decreased, with chloride levels dropping at the City’s monitoring wells back to 2015 levels, compared to high levels from 2018 to 2023. Groundwater elevations in the Foothill basin have recovered to approximately 87 percent of their peak levels in the early 1980s. In March 2026, the City received a permanent Aquifer Storage and Recovery Operations Permit at San Roque Well and plans to inject groundwater starting in early summer of 2026.
 Desalination: The Charles E. Meyer Desalination Plant serves as a drought preparedness, response, and recovery supply for the City. Steady production of Council Agenda Report
Water Supply Update
June 30, 2026

Page 3 ends

desalinated water allows the City to bank Cachuma supplies as carryover water.

With Cachuma in spill conditions, staff granted the contract operator permission to take the plant offline to perform needed maintenance and improvements to the plant. The plant was turned off in February 2026 and is slated to return to full production in October 2026. Desalinated water accounts for 10 percent (550 AF) of total water supplies for the first half of Water Year 2026.  State Water Project: The State Water Project (SWP) allocation set by the California Department of Water Resources for Water Year 2026 is 45 percent. The City’s allocation equates to 1,485 AF out of the full Table A allocation of 3,300 AF.

Although the 2025/2026 winter storms resulted in below average snowpack in the Sierra Nevadas, careful water management has sustained existing high storage levels in SWP reservoirs. The City has 3,840 AF of carryover SWP water stored in San Luis Reservoir. Staff is actively analyzing groundwater banking opportunities to store its excess state water during wet years for use in future dry years and opportunities to sell excess SWP water when not needed by the City to meet supply needs.
 Recycled Water: The City’s recycled water system continues to produce tertiarytreated recycled water for large landscape use. Use of recycled water offsets the need for potable drinking water to irrigate landscapes. While Cachuma was in surplus conditions, the recycled water system was turned off to save money on treatment costs. Recycled water use accounts for 6 percent (323 AF) of City water supply for the first half of Water Year 2026.

The City has sufficient water supplies to meet anticipated demands for the next three water years, even after assuming the next three years are dry. Staff plans to continue prioritizing the use of surface water supplies while utilizing desalinated water to build up storage of carryover water in Lake Cachuma and local groundwater basins. Staff does not plan to pump the groundwater basins or use SWP water through the rest of the Water Year 2026. Additionally, water efficiency remains a useful tool for stretching the City’s water supplies, especially when future rainfall is unpredictable and drought conditions are always possible during the next rainy season. Santa Barbara water customers have invested in a “conservation as a way of life” approach to water use in the community. For example, City potable water demand for October 2025 through March 2026 is 10 percent less (average 676 AF per month) than demands from October 2019 through March 2020 (average 751 AF per month).

Budget/Financial Information:

This action has no financial/budget impact on the City.

Council Agenda Report
Water Supply Update
June 30, 2026

Page 4 ends

Sustainability Impact:

Receiving a water supply update represents careful management of the City’s water supplies and will provide sustainability benefits for the community.

Environmental Review:

The City’s Water Supply Update does not have any direct or indirect physical changes in the environment, therefore, this progress update falls outside of the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378(b)(5) as administrative activities of governments that will not result in physical changes in the environment which are not subject to CEQA environmental review.

Water Commission Recommendation:

Staff presented this item to the City‘s Water Commission at their regular meeting on May 21, 2026. The Commission voted 3-0-2 (three in favor, none opposed, and two absent) in support of staff’s recommendation.

Prepared By: Dakota Corey, Water Supply and Services Manager/JS/sjc Submitted By: Joshua Haggmark, P.E., Water Resources Director Approved By: Kelly McAdoo, City Administrator
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Finance Department
Subject: May 2026 Investment Report
Recommendation:

That Council accept the May 2026 Investment Report.

Discussion:

The attached investment report includes Investment Activity, Interest Revenue, a Summary of Cash and Investments, and Investment Portfolio detail as of May 31, 2026.

Attachments:

1. May 2026 Investment Report.

2. May 2026 Clean Energy CCA Report.

3. May 2026 PARS Section 115 Trust.

Prepared By: Salvatore Parrilla, Treasury Analyst
Submitted By: Lyndsay Maas, Assistant Finance Director
Approved By: Kelly McAdoo, City Administrator
Agenda Item No. 21
ENDING BALANCE AS OF May 31, 2026
Yield to
Book Maturity
Description Value (365 days)
US Bank Checking Account $ 29,869,735 0.600%
State of California Local Agency Investment Fund (LAIF) 72,260,670 3.810% Chandler Asset Management - Managed Portfolio 280,538,387 3.810% Total Cash and Investments $ 382,668,793
May 31, 2026
ATTACHMENT 1

CITY OF SANTA BARBARA
Checking Account, LAIF & Managed Portfolio
Summary of Cash and Investments
City of Santa Barbara Managed | Account #11204 | As of May 31, 2026 Execution Time: 06/03/2026 05:36:38 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Performance Review
Account Summary
Maturity Distribution
Top Issuers
Credit Quality*
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (08/01/24)
City of Santa Barbara Managed 0.10% (0.45%) 0.58% 3.84% -- -- -- -- 4.30% Benchmark Return 0.03% (0.57%) 0.38% 3.41% -- -- -- -- 3.92% Average Modified Duration 2.48
Average Coupon 3.49%
Average Purchase YTM 3.81%
Average Market YTM 4.12%
Average Credit Quality* AA+
Average Final Maturity 2.85
Average Life 2.73
End Values as of
04/30/2026
End Values as of
05/31/2026
Market Value 279,292,063.93 279,544,395.56
Accrued Interest 2,042,855.02 2,052,560.74
Total Market Value 281,334,918.95 281,596,956.31
Income Earned 873,919.23 581,984.37
Cont/WD 0.00 0.00
Par 282,031,678.98 282,867,312.85
Book Value 279,654,654.13 280,538,386.93
Cost Value 278,517,864.46 279,332,141.07
United States 40.24%
Federal Home Loan Mortgage Corp 9.81%
Federal Home Loan Banks 7.85%
Farm Credit System 5.33%
International Bank for Recon and Dev 3.30%
Eli Lilly and Company 1.51%
Prudential Financial, Inc. 1.25%
Blackrock, Inc. 1.18%
**Periods over 1 year are annualized.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index *The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.

RECONCILIATION SUMMARY
Accrual Activity Summary
Fair Market Activity Summary
Month to Date Fiscal Year to Date
(07/01/2025)
Beginning Book Value 279,654,654.13 271,882,321.01
Maturities/Calls (6,000,000.00) (34,000,000.00)
Principal Paydowns (3,023.38) (31,750.19)
Purchases 12,649,132.49 119,246,281.25
Sales (7,244,850.33) (78,662,129.46)
Change in Cash, Payables, Receivables 1,394,510.05 1,391,394.49 Amortization/Accretion 68,551.29 732,804.08
Realized Gain (Loss) 19,412.68 (20,534.25)
Ending Book Value 280,538,386.93 280,538,386.93
Month to Date Fiscal Year to Date
(07/01/2025)
Beginning Market Value 279,292,063.93 271,671,776.77
Maturities/Calls (6,000,000.00) (34,000,000.00)
Principal Paydowns (3,023.38) (31,750.19)
Purchases 12,649,132.49 119,246,281.25
Sales (7,244,850.33) (78,662,129.46)
Change in Cash, Payables, Receivables 1,394,510.05 1,391,394.49 Amortization/Accretion 68,551.29 732,804.08
Change in Net Unrealized Gain (Loss) (631,401.17) (783,447.13) Realized Gain (Loss) 19,412.68 (20,534.25)
Ending Market Value 279,544,395.56 279,544,395.56
Maturities / Calls
Month to Date (6,000,000.00)
Fiscal Year to Date (34,000,000.00)
Principal Paydowns
Month to Date (3,023.38)
Fiscal Year to Date (31,750.19)
Purchases
Month to Date 12,649,132.49
Fiscal Year to Date 119,246,281.25
Sales
Month to Date (7,244,850.33)
Fiscal Year to Date (78,662,129.46)
Interest Received
Month to Date 473,738.69
Fiscal Year to Date 7,804,878.74
Purchased / Sold Interest
Month to Date 29,988.67
Fiscal Year to Date (28,396.86)
City of Santa Barbara Managed | Account #11204 | As of May 31, 2026 Execution Time: 06/03/2026 05:36:38 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 1,240,000.00 05/20/20254.84%
1,239,979.42
1,239,986.38
100.41

4.04%
1,245,035.64
1,735.31

0.45%
5,049.26
NA/AAA
AAA

1.98 0.70
096912AD2 BMWLT 2025-1 A3 4.43
06/26/2028 680,000.00 06/03/20254.82%
679,985.04
679,989.83
100.28

4.15%
681,875.64
502.07

0.24%
1,885.81
NA/AAA
AAA

2.07 0.85
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 1,420,000.00 10/08/20254.32%
1,419,996.02
1,419,996.87

99.80 4.19%
1,417,159.01
939.57

0.51%
(2,837.86)
NA/AAA
AAA

2.32 1.05
89240NAD4 TLOT 2025-B A3 3.96 11/20/2028 1,800,000.00 09/09/2025

3.97%
1,799,677.80
1,799,749.18

99.52 4.30%
1,791,424.80
2,178.00

0.64%
(8,324.38)
Aaa/NA
AAA

2.47 1.56
58768YAD7 MBALT 2025-A A3 4.61
04/16/2029 1,355,000.00 05/14/20254.66%
1,354,834.83
1,354,878.38
100.55

4.26%
1,362,386.11
2,776.24

0.49%
7,507.72
NA/AAA
AAA

2.88 1.38
44935XAD7 HART 2025-B A3 4.36
12/17/2029 1,030,000.00 06/03/20254.36%
1,029,906.99
1,029,927.00
100.19

4.24%
1,031,924.04
1,995.91

0.37%
1,997.04
NA/AAA
AAA

3.55 1.19
362549AD9 GMCAR 2025-2 A3 4.28
04/16/2030 650,000.00 05/06/20254.71%
649,904.32
649,924.70
100.15

4.17%
650,950.63
1,159.17

0.23%
1,025.92
Aaa/AAA
NA

3.88 1.00
92970QAJ4 WFCIT 2025-1 A 4.34
05/15/2030 2,135,000.00 06/03/20254.33%
2,134,964.56
2,134,971.57
100.19

4.28%
2,138,974.09
4,118.18

0.77%
4,002.52
NA/AAA
AAA

3.96 1.84
17305EHA6 CCCIT 2025-A1 A1 4.3
06/21/2030 2,105,000.00 06/18/20254.31%
2,104,428.91
2,104,535.54
100.04

4.28%
2,105,935.04
40,228.89

0.75%
1,399.50
Aaa/AAA
NA

4.06 1.91
58769MAD2 MBART 261 A3 4.36 10/15/2030 1,415,000.00 05/12/2026

4.60%
1,414,691.81
1,414,694.11
100.03

4.39%
1,415,396.20
1,885.09

0.51%
702.09
NA/AAA
AAA

4.38 2.11
Total ABS 13,830,000.00 4.43%
13,828,369.70
13,828,653.55
100.08

4.25%
13,841,061.19
57,518.43

4.95%
12,407.64

3.24 1.48
AGENCY
3130AMMZ2 FEDERAL HOME LOAN BANKS 1.0
06/10/2026 2,000,000.00 06/10/2021

1.00%
2,000,000.00
2,000,000.00

99.93 3.75%
1,998,616.00
9,500.00

0.71%
(1,384.00)
Aa1/AA+
AA+

0.03 0.02
3133EMH21 FEDERAL FARM CREDIT BANKS
FUNDING CORP 0.9 06/15/2026 2,000,000.00 06/15/20210.90% 2,000,000.00
2,000,000.00

99.87 4.18%
1,997,438.00
8,300.00

0.71%
(2,562.00)
Aa1/AA+
AA+

0.04 0.04
3133ENHV5 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.39 06/22/2026 3,000,000.00 12/22/20211.39% 3,000,000.00
3,000,000.00

99.84 4.03%
2,995,344.00
18,417.50

1.07%
(4,656.00)
Aa1/AA+
AA+

0.06 0.06
3133EM4S8 FEDERAL FARM CREDIT BANKS
FUNDING CORP 0.87 09/08/2026 2,000,000.00 09/08/20210.87% 2,000,000.00
2,000,000.00

99.20 3.87%
1,983,950.00
4,011.67

0.71%
(16,050.00)
Aa1/AA+
AA+

0.27 0.27
3130ANXS4 FEDERAL HOME LOAN BANKS 0.9
09/28/2026 2,000,000.00 09/28/20210.90%
2,000,000.00
2,000,000.00

99.06 3.81%
1,981,246.00
3,150.00

0.71%
(18,754.00)
Aa1/AA+
AA+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3130APHA6 FEDERAL HOME LOAN BANKS

1.25 10/28/2026 2,000,000.00 10/28/20211.12%
2,000,000.00
2,000,000.00

98.95 3.85%
1,979,034.00
2,291.67

0.71%
(20,966.00)
Aa1/AA+
AA+

0.41 0.40
3133ENLZ1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.78 01/26/2027 3,000,000.00 01/27/20221.78% 3,000,000.00
3,000,000.00

98.71 3.80%
2,961,222.00
18,541.67

1.06%
(38,778.00)
Aa1/AA+
AA+

0.66 0.64
3130AQMX8 FEDERAL HOME LOAN BANKS

2.25 01/26/2027 3,000,000.00 01/26/20221.79%
3,000,000.00
3,000,000.00

98.95 3.89%
2,968,572.00
23,437.50

1.06%
(31,428.00)
Aa1/AA+
AA+

0.66 0.63
3133ENPB0 FEDERAL FARM CREDIT BANKS
FUNDING CORP 2.18 02/16/2027 3,000,000.00 02/16/20222.18% 3,000,000.00
3,000,000.00

98.82 3.89%
2,964,510.00
19,075.00

1.06%
(35,490.00)
Aa1/AA+
AA+

0.71 0.69
3130ARCB5 FEDERAL HOME LOAN BANKS

2.375 03/29/2027 3,000,000.00 03/29/2022

2.37%
3,000,000.00
3,000,000.00

98.83 3.83%
2,964,759.00
12,270.83

1.06%
(35,241.00)
Aa1/AA+
AA+

0.83 0.81
3133EPEE1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 03/29/2027 2,000,000.00 03/29/20234.00% 2,000,000.00
2,000,000.00
100.05

3.94%
2,000,916.00
13,777.78

0.72%
916.00
Aa1/AA+
AA+

0.83 0.80
3134GXVN1 Federal H 3,000,000.00 06/23/2022

3.50%
3,000,000.00
3,000,000.00

99.69 3.80%
2,990,781.00
46,083.33

1.07%
(9,219.00)
Aa1/AA+
AA+

1.06 1.02
3130AWWN6 FEDERAL HOME LOAN BANKS 4.5
09/10/2027 2,000,000.00 08/24/20234.51%
1,999,120.00
1,999,722.54
100.70

3.93%
2,013,934.00
20,250.00

0.72%
14,211.46
Aa1/AA+
AA+

1.28 1.22
3130AWC24 FEDERAL HOME LOAN BANKS 4.0
06/09/2028 2,000,000.00 06/26/20234.07%
1,993,600.00
1,997,386.96

99.96 4.02%
1,999,263.08
38,222.22

0.72%
1,876.12
Aa1/AA+
AA+

2.02 1.89
3130ATHX8 FEDERAL HOME LOAN BANKS

4.125 09/14/2029 3,000,000.00 10/17/20243.93%
3,025,380.00
3,017,009.70
100.01

4.12%
3,000,378.00
26,468.75

1.07%
(16,631.70)
Aa1/AA+
AA+

3.29 3.02
3130ATUT2 FEDERAL HOME LOAN BANKS 4.5
12/14/2029 3,000,000.00 12/16/20244.29%
3,028,440.00
3,020,156.05
101.33

4.09%
3,039,907.14
62,625.00

1.09%
19,751.09
Aa1/AA+
AA+

3.54 3.18
Total Agency 40,000,000.00 2.47%
40,046,540.00
40,034,275.25

99.61 3.93%
39,839,870.22
326,422.92

14.25%
(194,405.03)

1.08 1.01

AGENCY CMBS
3137FLMV3 FHMS K-090 A2 3.422
02/25/2029 1,357,000.00 02/12/20254.73%
1,292,065.43
1,313,110.71

97.67 4.29%
1,325,425.32
3,869.71

0.47%
12,314.62
Aa1/AAA
AA+

2.74 2.51
3137FLN91 FHMS K-091 A2 3.505
03/25/2029 2,570,000.00 09/20/20243.80%
2,537,272.66
2,549,692.06

97.86 4.29%
2,514,881.21
7,506.54

0.90%
(34,810.85)
Aa1/AAA
AA+

2.82 2.53
3137FMCR1 FHMS K-093 A2 2.982
05/25/2029 2,450,078.35 09/19/20243.82%
2,363,751.37
2,395,353.21

96.46 4.30%
2,363,423.98
6,088.44

0.85%
(31,929.23)
Aa1/AA+
AAA

2.98 2.61
3137FNAE0 FHMS K-095 A2 2.785
06/25/2029 1,000,000.00 03/13/20254.39%
938,828.13
956,351.32

95.68 4.32%
956,849.00
2,320.83

0.34%
497.68
Aa1/AA+
AAA

3.07 2.77
3137FMTY8 FHMS K-094 A2 2.903
06/25/2029 3,000,000.00 12/05/20253.87%
2,903,554.69
2,916,702.87

95.98 4.31%
2,879,382.00
7,257.50

1.03%
(37,320.87)
Aa1/AA+
AAA

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FPHK4 FHMS K-098 A2 2.425
08/25/2029 2,100,000.00 10/01/20243.83%
1,970,718.74
2,015,108.73

94.41 4.32%
1,982,709.75
4,243.75

0.71%
(32,398.98)
Aa1/AA+
AAA

3.24 2.96
3137H9D71 FHMS K-750 A2 3.0 09/25/2029 2,500,000.00 11/15/2024

4.62%
2,336,718.75
2,388,901.42

96.31 4.32%
2,407,837.50
6,250.00

0.86%
18,936.08
Aa1/AA+
AAA

3.32 2.73
3137FPJG1 FHMS K-099 A2 2.595
09/25/2029 2,800,000.00 06/06/20254.38%
2,609,140.63
2,653,051.89

94.78 4.32%
2,653,750.40
6,055.00

0.95%
698.51
Aa1/AA+
AAA

3.32 3.02
3137FQ3Z4 FHMS K-101 A2 2.524
10/25/2029 2,480,000.00 03/17/20254.42%
2,287,218.75
2,338,207.99

94.37 4.33%
2,340,395.84
5,216.27

0.84%
2,187.85
Aa1/AA+
AA+

3.40 3.13
3137FRUT6 FHMS K-106 A2 2.069
01/25/2030 2,700,000.00 07/14/2025

4.28%
2,457,843.75
2,505,264.16

92.41 4.34%
2,494,980.90
4,655.25

0.89%
(10,283.26)
Aa1/AA+
AAA

3.65 3.41
3137HA4B9 FHMS K-751 A2 4.412
03/25/2030 2,500,000.00 03/25/20254.41%
2,496,972.66
2,497,696.26
100.03

4.35%
2,500,872.50
9,191.67

0.89%
3,176.24
Aaa/AA+
AA+

3.82 3.15
Total Agency CMBS 25,457,078.35 4.20%
24,194,085.56
24,529,440.62

95.97 4.32%
24,420,508.40
62,654.96

8.74%
(108,932.21)

3.25 2.90
CASH
CCYUSD Payable (910,000.00) -- (910,000.00)
(910,000.00)

1.00 (910,000.00)

0.00 (0.33%)

0.00 Aaa/AAA
AAA

0.00 0.00
CCYUSD Receivable 2,308,775.23 -- 2,308,775.23
2,308,775.23

1.00 2,308,775.23

0.00 0.83%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 1,398,775.23
1,398,775.23
1,398,775.23

1.00 1,398,775.23

0.00 0.50%

0.00 0.00

0.00 CORPORATE
74153WCU1 PRICOA GLOBAL FUNDING I 4.4
08/27/2027 3,500,000.00 08/20/20244.41%
3,499,230.00
3,499,682.16
100.18

4.25%
3,506,202.00
40,211.11

1.25%
6,519.84
Aa3/AAAA1.24

1.18 66815L2T5

NORTHWESTERN MUTUAL
GLOBAL FUNDING 4.11
09/12/2027
2,440,000.00 09/05/2024

4.11%
2,439,926.80
2,439,968.71

99.73 4.33%
2,433,331.48
22,006.77

0.87%
(6,637.23)
Aa1/AA+
AAA

1.28 1.22
64953BBW7 NEW YORK LIFE GLOBAL
FUNDING 4.4 04/25/2028 1,880,000.00 04/22/20254.43%
1,878,684.00
1,879,166.69
100.03

4.38%
1,880,620.40
8,272.00

0.67%
1,453.71
Aa1/AA+
AAA

1.90 1.80
69371RU20 PACCAR FINANCIAL CORP 4.0
11/07/2028 1,515,000.00 11/05/20254.02%
1,514,151.60
1,514,311.06

99.71 4.12%
1,510,651.69
4,040.00

0.54%
(3,659.37)
A1/A+
NA

2.44 2.29
61690DK72 MORGAN STANLEY BANK NA

5.016 01/12/2029 3,250,000.00 02/13/20254.93%
3,257,345.00
3,254,080.56
100.79

4.52%
3,275,782.25
62,943.83

1.17%
21,701.69
Aa3/A+
AA

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
693475CG8 PNC FINANCIAL SERVICES
GROUP INC 4.075 01/26/2029 2,000,000.00 01/27/20264.03% 2,001,820.00
2,001,510.00

99.42 4.37%
1,988,472.00
28,298.61

0.71%
(13,038.00)
A3/AA2.66

1.56 09247XAP6 BLACKROCK FINANCE INC 3.25
04/30/2029 3,400,000.00 07/29/20244.60%
3,205,996.00
3,281,025.79

97.42 4.20%
3,312,212.00
9,515.28

1.18%
31,186.21
Aa3/AANA2.91

2.74 89236TMF9 TOYOTA MOTOR CREDIT CORP

5.05 05/16/2029 3,250,000.00 12/04/20244.55%
3,314,675.00
3,293,036.97
101.88

4.36%
3,311,191.00
6,838.54

1.18%
18,154.03
A1/A+
A+

2.96 2.72
38151LAJ9 GOLDMAN SACHS BANK USA

4.656 06/03/2029 910,000.00 05/27/20264.57%
910,000.00
910,000.00
100.13

4.52%
911,158.43

0.00 0.33%
1,158.43
A1/A+
AA3.011.89
24422EXT1 JOHN DEERE CAPITAL CORP 4.85
06/11/2029 3,250,000.00 07/18/2024

4.62%
3,281,980.00
3,269,781.81
101.51

4.31%
3,299,055.50
74,434.03

1.18%
29,273.69
A1/A
A+

3.03 2.73
437076DC3 HOME DEPOT INC 4.75
06/25/2029 3,250,000.00 07/18/20244.59%
3,272,652.50
3,263,929.18
101.27

4.30%
3,291,427.75
66,895.83

1.18%
27,498.57
A2/A
A

3.07 2.70
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 2,245,000.00 07/21/20254.35%
2,245,000.00
2,245,000.00

99.69 4.49%
2,238,074.94
35,544.65

0.80%
(6,925.06)
A2/AA3.14

1.99 532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 3,275,000.00 08/12/2024

4.24%
3,268,882.55
3,271,080.28

99.86 4.25%
3,270,261.08
40,882.92

1.17%
(819.20)
Aa3/AANA3.21

2.93 171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 2,800,000.00 08/15/20244.47%
2,821,364.00
2,813,575.79
100.75

4.40%
2,820,956.60
38,336.67

1.01%
7,380.81
A2/A
A

3.21 2.84
14913UAQ3

CATERPILLAR FINANCIAL
SERVICES CORP 4.375
08/16/2029
3,275,000.00 08/12/2024

4.40%
3,270,820.05
3,272,317.14
100.14

4.32%
3,279,683.25
41,790.36

1.17%
7,366.11
A1/A
A+

3.21 2.93
69371RT48 PACCAR FINANCIAL CORP 4.0
09/26/2029 1,600,000.00 09/23/20244.05%
1,596,704.00
1,597,810.49

99.48 4.17%
1,591,632.00
11,555.56

0.57%
(6,178.49)
A1/A+
NA

3.32 3.06
857449AE2 STATE STREET BANK AND TRUST
CO 4.782 11/23/2029 2,750,000.00 12/09/20244.56%
2,776,977.50
2,768,954.34
101.46

4.32%
2,790,268.25
2,922.33

1.00%
21,313.91
Aa2/AAAA+3.48

3.18 59217GFT1 METROPOLITAN LIFE GLOBAL
FUNDING I 4.9 01/09/2030 3,100,000.00 --4.96%
3,092,094.00
3,094,241.51
100.88

4.63%
3,127,245.90
59,916.11

1.12%
33,004.39
Aa3/AAAA3.61

3.21 06406RCG0 BANK OF NEW YORK MELLON
CORP 4.026 01/22/2030 1,925,000.00 01/14/20264.05%
1,925,470.40
1,925,414.60

98.87 4.41%
1,903,285.85
27,771.01

0.68%
(22,128.76)
Aa3/A
AA3.652.44
95000U4D2 WELLS FARGO & CO 4.182
01/23/2030 2,000,000.00 01/27/20264.17%
2,000,380.00
2,000,336.81

98.98 4.54%
1,979,581.48
29,738.67

0.71%
(20,755.33)
A1/BBB+
A+

3.65 2.44
12572QAL9 CME GROUP INC 4.4 03/15/2030 2,000,000.00 11/13/2025

4.12%
2,021,360.00
2,018,624.71

99.99 4.40%
1,999,766.00
18,577.78

0.72%
(18,858.71)
Aa3/AAAA3.79

3.42 743315AW3 PROGRESSIVE CORP 3.2
03/26/2030 2,500,000.00 04/25/20254.49%
2,359,625.00
2,390,862.94

95.58 4.47%
2,389,622.80
14,444.44

0.85%
(1,240.14)
A2/A
A

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
06051GMY2 BANK OF AMERICA CORP 4.477
04/23/2030 2,100,000.00 05/20/20264.66%
2,085,300.00
2,085,412.84

99.56 4.61%
2,090,688.60
9,924.02

0.75%
5,275.76
A1/AAA3.90

2.67 74464AAC5 PUBLIC STORAGE OPERATING CO

4.375 07/01/2030 1,700,000.00 07/17/20254.58%
1,684,598.00
1,687,305.48

99.48 4.52%
1,691,143.19
30,989.58

0.60%
3,837.70
A2/A
NA

4.08 3.63
713448GH5 PEPSICO INC 4.3 07/23/2030 2,000,000.00 09/19/2025

4.08%
2,018,440.00
2,015,761.68
100.11

4.27%
2,002,232.36
30,577.78

0.72%
(13,529.32)
A1/A+
NA

4.15 3.70
58933YBQ7 MERCK & CO INC 4.15
09/15/2030 2,000,000.00 09/23/20254.07%
2,007,100.00
2,006,106.16

99.11 4.38%
1,982,220.00
17,522.22

0.71%
(23,886.16)
Aa3/A+
NA

4.29 3.85
02079KAW7 ALPHABET INC 4.1 11/15/2030 2,100,000.00 11/14/2025

4.04%
2,105,565.00
2,104,956.67

98.97 4.36%
2,078,441.40
3,826.67

0.74%
(26,515.27)
Aa2/AA+
NA

4.46 4.02
023135CT1 AMAZON.COM INC 4.1
11/20/2030 2,000,000.00 12/29/20254.03%
2,006,040.00
2,005,513.44

98.59 4.45%
1,971,756.96
2,505.56

0.71%
(33,756.48)
A1/AA
AA4.474.03
92826CAZ5 VISA INC 4.1 02/12/2031 1,815,000.00 02/03/2026

4.13%
1,812,567.90
1,812,713.08

99.41 4.24%
1,804,285.96
22,531.21

0.65%
(8,427.12)
Aa3/AANA4.70

4.18 91159HJV3 US BANCORP 5.083 05/15/2031 2,100,000.00 05/15/2026

4.82%
2,120,055.00
2,119,862.43
101.40

4.74%
2,129,305.50
4,744.13

0.76%
9,443.07
A3/A
A+

4.96 3.54
532457DL9 ELI LILLY AND CO 4.375
05/20/2031 955,000.00 05/06/20264.40%
953,978.15
953,984.87

99.49 4.49%
950,117.09
1,276.65

0.34%
(3,867.78)
Aa3/AANA4.97

4.41 Total Corporate 72,885,000.00 4.41%
72,748,782.45
72,796,328.17

99.92 4.38%
72,810,673.70
768,834.31

26.05%
14,345.52

3.28 2.78

MONEY MARKET
FUND
31846V807 FIRST AMER:TRS OBG Y 2,766,459.27 --

3.26%
2,766,459.27
2,766,459.27

1.00 0.00%
2,766,459.27

0.00 0.99%

0.00 Aaa/
AAAm
AAA

0.00 0.00
Total Money
Market Fund 2,766,459.27 3.26%
2,766,459.27
2,766,459.27

1.00 0.00%
2,766,459.27

0.00 0.99%

0.00 0.00

0.00 MUNICIPAL
BONDS
13063EGT7 CALIFORNIA STATE 4.5
08/01/2029 2,715,000.00 10/30/20244.38%
2,729,308.05
2,724,569.03
100.90

4.19%
2,739,312.83
40,725.00

0.98%
14,743.80
Aa2/AAAA3.17

2.88 Total Municipal
Bonds 2,715,000.00 4.38%
2,729,308.05
2,724,569.03
100.90

4.19%
2,739,312.83
40,725.00

0.98%
14,743.80

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

SUPRANATIONAL
45906M4E8

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.5 06/26/2028
2,000,000.00 06/26/2023

4.53%
1,997,500.00
1,998,965.52

99.45 4.78%
1,988,966.00
38,750.00

0.71%
(9,999.52)
Aaa/AAA
NA

2.07 1.92
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
3,865,000.00 --

3.98%
3,846,482.35
3,852,463.94

99.28 4.10%
3,837,303.41
18,706.60

1.37%
(15,160.53)
Aaa/AAA
NA

3.38 3.12
459058LY7

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.5 10/28/2030
3,500,000.00 10/27/2025

3.69%
3,469,900.00
3,473,460.57

97.45 4.14%
3,410,701.00
11,229.17

1.22%
(62,759.57)
Aaa/AAA
NA

4.41 4.02
Total
Supranational 9,365,000.00 3.99%
9,313,882.35
9,324,890.03

98.64 4.26%
9,236,970.41
68,685.77

3.30%
(87,919.62)

3.48 3.19

US TREASURY
91282CCP4 UNITED STATES TREASURY 0.625
07/31/2026 2,000,000.00 09/24/20210.90%
1,973,950.30
1,999,117.46

99.49 3.71%
1,989,817.70
4,178.18

0.71%
(9,299.76)
Aa1/AA+
AA+

0.17 0.16
91282CCW9 UNITED STATES TREASURY 0.75
08/31/2026 2,000,000.00 10/08/20211.00%
1,975,781.25
1,998,767.39

99.26 3.75%
1,985,281.24
3,790.76

0.71%
(13,486.15)
Aa1/AA+
AA+

0.25 0.25
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 2,000,000.00 10/08/20211.02%
1,986,406.25
1,999,095.25

99.07 3.73%
1,981,328.12
2,964.48

0.71%
(17,767.13)
Aa1/AA+
AA+

0.33 0.33
912828YU8 UNITED STATES TREASURY 1.625
11/30/2026 2,000,000.00 02/28/20221.86%
1,978,437.50
1,997,739.42

98.95 3.78%
1,978,918.00

88.80 0.71%
(18,821.42)
Aa1/AA+
AA+

0.50 0.49
912828YX2 UNITED STATES TREASURY 1.75
12/31/2026 2,000,000.00 03/17/20222.17%
1,961,956.00
1,995,369.50

98.83 3.80%
1,976,692.00
14,696.13

0.71%
(18,677.50)
Aa1/AA+
AA+

0.59 0.57
9128283W8 UNITED STATES TREASURY 2.75
02/15/2028 5,000,000.00 12/09/20244.10%
4,800,781.25
4,893,018.50

97.95 4.00%
4,897,460.00
40,262.43

1.75%
4,441.50
Aa1/AA+
AA+

1.71 1.63
91282CGT2 UNITED STATES TREASURY 3.625
03/31/2028 2,000,000.00 01/25/20244.07%
1,966,020.00
1,985,112.89

99.34 4.00%
1,986,718.76
12,281.42

0.71%
1,605.87
Aa1/AA+
AA+

1.84 1.74
91282CHA2 UNITED STATES TREASURY 3.5
04/30/2028 2,000,000.00 01/25/20244.06%
1,956,484.36
1,980,464.08

99.07 4.01%
1,981,406.24
6,086.96

0.71%
942.16
Aa1/AA+
AA+

1.92 1.83
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 2,000,000.00 01/25/20244.07%
1,965,180.00
1,983,993.32

99.26 4.01%
1,985,234.38
198.09

0.71%
1,241.06
Aa1/AA+
AA+

2.00 1.91
91282CHQ7 UNITED STATES TREASURY 4.125
07/31/2028 3,000,000.00 01/25/20244.06%
3,007,950.00
3,003,813.49
100.21

4.02%
3,006,444.00
41,363.95

1.08%
2,630.51
Aa1/AA+
AA+

2.17 2.03
91282CHX2 UNITED STATES TREASURY 4.375
08/31/2028 2,000,000.00 02/23/20244.35%
2,002,000.00
2,000,995.76
100.73

4.03%
2,014,610.00
22,112.77

0.72%
13,614.24
Aa1/AA+
AA+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CJN2 UNITED STATES TREASURY 4.375
11/30/2028 2,000,000.00 02/23/20244.33%
2,003,722.00
2,001,950.74
100.79

4.04%
2,015,860.00
239.07

0.72%
13,909.26
Aa1/AA+
AA+

2.50 2.35
91282CDW8 UNITED STATES TREASURY 1.75
01/31/2029 5,000,000.00 10/29/20244.16%
4,535,156.25
4,708,350.93

94.23 4.05%
4,711,720.00
29,247.24

1.69%
3,369.07
Aa1/AA+
AA+

2.67 2.55
91282CEB3 UNITED STATES TREASURY 1.875
02/28/2029 3,000,000.00 11/12/20244.30%
2,717,226.56
2,819,118.78

94.40 4.05%
2,831,952.00
14,215.35

1.01%
12,833.22
Aa1/AA+
AA+

2.75 2.62
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 5,000,000.00 12/09/20244.09%
5,005,664.06
5,003,725.60
100.18

4.05%
5,009,179.70
34,938.52

1.79%
5,454.10
Aa1/AA+
AA+

2.83 2.63
9128286T2 UNITED STATES TREASURY 2.375
05/15/2029 5,000,000.00 10/29/2024

4.14%
4,637,304.69
4,763,963.67

95.38 4.05%
4,768,750.00
5,485.73

1.71%
4,786.33
Aa1/AA+
AA+

2.96 2.81
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 2,000,000.00 01/13/20254.59%
1,992,812.50
1,995,074.90
101.22

4.06%
2,024,454.00
245.90

0.72%
29,379.10
Aa1/AA+
AA+

3.00 2.78
91282CEV9 UNITED STATES TREASURY 3.25
06/30/2029 5,000,000.00 10/23/20244.07%
4,825,585.94
4,885,253.91

97.67 4.06%
4,883,398.45
68,232.04

1.75%
(1,855.46)
Aa1/AA+
AA+

3.08 2.86
91282CFC0 UNITED STATES TREASURY 2.625
07/31/2029 5,500,000.00 10/04/20243.79%
5,221,347.66
5,316,767.86

95.76 4.06%
5,266,893.50
48,257.94

1.88%
(49,874.36)
Aa1/AA+
AA+

3.17 2.97
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 5,400,000.00 09/20/20243.53%
5,422,781.25
5,414,997.97

98.63 4.08%
5,326,171.85
49,469.43

1.91%
(88,826.12)
Aa1/AA+
AA+

3.25 3.00
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 4,000,000.00 10/03/20243.61%
3,979,218.75
3,986,119.22

98.21 4.08%
3,928,281.24
23,715.85

1.41%
(57,837.98)
Aa1/AA+
AA+

3.33 3.09
91282CFT3 UNITED STATES TREASURY 4.0
10/31/2029 5,000,000.00 12/09/20244.08%
4,981,250.00
4,986,898.10

99.74 4.08%
4,986,914.05
17,391.30

1.78%

15.95 Aa1/AA+
AA+

3.42 3.15
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 3,000,000.00 12/04/20244.08%
3,006,210.94
3,004,358.91
100.13

4.09%
3,003,750.00
338.11

1.07%
(608.91)
Aa1/AA+
AA+

3.50 3.23
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 2,500,000.00 05/22/20254.11%
2,488,378.91
2,490,830.28

99.65 4.10%
2,491,308.60
16,939.89

0.89%
478.32
Aa1/AA+
AA+

3.83 3.49
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 3,250,000.00 04/29/20253.78%
3,263,837.89
3,260,829.32

99.18 4.10%
3,223,340.25
10,951.09

1.15%
(37,489.07)
Aa1/AA+
AA+

3.91 3.58
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 2,000,000.00 06/06/20254.11%
1,990,078.13
1,992,027.56

99.61 4.11%
1,992,188.00
218.58

0.71%
160.44
Aa1/AA+
AA+

4.00 3.66
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 6,000,000.00 08/15/20253.85%
6,007,500.00
6,006,309.46

99.09 4.11%
5,945,388.00
77,714.09

2.13%
(60,921.46)
Aa1/AA+
AA+

4.17 3.76
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 09/18/20253.66%
4,992,382.81
4,993,457.73

98.08 4.12%
4,903,906.25
45,805.03

1.75%
(89,551.48)
Aa1/AA+
AA+

4.25 3.86
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 5,000,000.00 03/26/2026

4.03%
4,917,773.44
4,921,066.49

98.05 4.12%
4,902,343.75
30,703.55

1.75%
(18,722.74)
Aa1/AA+
AA+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 2,800,000.00 12/29/20253.68%
2,777,906.25
2,779,788.40

97.44 4.13%
2,728,359.20
267.76

0.98%
(51,429.20)
Aa1/AA+
AA+

4.50 4.11
91282CPW5 UNITED STATES TREASURY 3.75
01/31/2031 2,250,000.00 02/26/20263.59%
2,266,171.88
2,265,326.88

98.38 4.13%
2,213,613.00
28,202.69

0.79%
(51,713.88)
Aa1/AA+
AA+

4.67 4.18
91282CQD6 UNITED STATES TREASURY 3.5
02/28/2031 5,750,000.00 03/05/20263.72%
5,692,275.39
5,695,034.75

97.30 4.13%
5,595,019.56
50,859.38

2.00%
(100,015.19)
Aa1/AA+
AA+

4.75 4.28
91282CQG9 UNITED STATES TREASURY 3.875
03/31/2031 4,000,000.00 04/17/20263.84%
4,006,406.25
4,006,257.27

98.85 4.14%
3,954,062.48
26,256.83

1.41%
(52,194.79)
Aa1/AA+
AA+

4.83 4.33
Total US Treasury 114,450,000.00 3.73%
112,305,938.46
113,134,995.78

98.32 4.05%
112,490,764.32
727,719.35

40.24%
(644,231.46)

3.10 2.86
Total Portfolio 282,867,312.85 3.81%
279,332,141.07
280,538,386.93

97.39 4.12%
279,544,395.56
2,052,560.74
100.00%
(993,991.37)

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 05/04/2026 31846V807 4,265.18 FIRST AMER:TRS OBG Y 1.000 3.26% (4,265.18) 0.00 (4,265.18) 0.00 Purchase 05/07/2026 31846V807 30,300.00 FIRST AMER:TRS OBG Y 1.000 3.24% (30,300.00) 0.00 (30,300.00) 0.00 Purchase 05/12/2026 31846V807 2,832,080.63 FIRST AMER:TRS OBG Y 1.000 3.24% (2,832,080.63) 0.00 (2,832,080.63) 0.00 Purchase 05/15/2026 31846V807 59,046.35 FIRST AMER:TRS OBG Y 1.000 3.23% (59,046.35) 0.00 (59,046.35) 0.00 Purchase 05/15/2026 31846V807 2,098,450.52 FIRST AMER:TRS OBG Y 1.000 3.23% (2,098,450.52) 0.00 (2,098,450.52) 0.00 Purchase 05/18/2026 91159HJV3 2,100,000.00 US BANCORP 5.083 05/15/2031 100.955 4.82% (2,120,055.00) (889.53) (2,120,944.53) 0.00 Purchase 05/18/2026 31846V807 2,318.33 FIRST AMER:TRS OBG Y 1.000 3.22% (2,318.33) 0.00 (2,318.33) 0.00 Purchase 05/20/2026 58769MAD2 1,415,000.00 MBART 261 A3 4.36 10/15/2030 99.978 4.60% (1,414,691.81) 0.00 (1,414,691.81) 0.00 Purchase 05/20/2026 532457DL9 955,000.00 ELI LILLY AND CO 4.375 05/20/2031 99.893 4.40% (953,978.15) 0.00 (953,978.15) 0.00 Purchase 05/21/2026 06051GMY2 2,100,000.00

BANK OF AMERICA
CORP 4.477
04/23/2030

99.300 4.66% (2,085,300.00) (7,312.43) (2,092,612.43) 0.00 Purchase 05/26/2026 31846V807 138,646.52 FIRST AMER:TRS OBG Y 1.000 3.26% (138,646.52) 0.00 (138,646.52) 0.00 Total Purchase 11,735,107.53 (11,739,132.49) (8,201.96) (11,747,334.45) 0.00 TOTAL
ACQUISITIONS 11,735,107.53 (11,739,132.49) (8,201.96) (11,747,334.45) 0.00

DISPOSITIONS
Maturity 05/15/2026 31422X2U5 (2,000,000.00)

FEDERAL

AGRICULTURAL

MORTGAGE CORP

3.625 05/15/2026
100.000 3.62% 2,000,000.00 0.00 2,000,000.00 0.00
Maturity 05/20/2026 3130AMDY5 (2,000,000.00) FEDERAL HOME LOAN BANKS 1.0 05/20/2026 100.000 1.00% 2,000,000.00 0.00 2,000,000.00 0.00 Maturity 05/31/2026 91282CCF6 (2,000,000.00)

UNITED STATES
TREASURY 0.75
05/31/2026
100.000 0.88% 2,000,000.00 0.00 2,000,000.00 0.00
Total Maturity (6,000,000.00) 6,000,000.00 0.00 6,000,000.00 0.00 City of Santa Barbara Managed | Account #11204 | As of May 31, 2026 Execution Time: 06/03/2026 05:36:38 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 05/12/2026 78016HZV5 (2,750,000.00)

ROYAL BANK OF
CANADA 4.95
02/01/2029
101.596 4.59% 2,793,890.00 (38,190.63) 2,832,080.63 19,412.68 Sale 05/14/2026 31846V807 (10,670.95) FIRST AMER:TRS OBG Y 1.000 3.25% 10,670.95 0.00 10,670.95 0.00 Sale 05/18/2026 31846V807 (2,038,882.03) FIRST AMER:TRS OBG Y 1.000 3.22% 2,038,882.03 0.00 2,038,882.03 0.00 Sale 05/20/2026 31846V807 (306,997.29) FIRST AMER:TRS OBG Y 1.000 3.21% 306,997.29 0.00 306,997.29 0.00 Sale 05/21/2026 31846V807 (2,092,612.43) FIRST AMER:TRS OBG Y 1.000 3.21% 2,092,612.43 0.00 2,092,612.43 0.00 Sale 05/22/2026 31846V807 (1,797.63) FIRST AMER:TRS OBG Y 1.000 3.22% 1,797.63 0.00 1,797.63 0.00 Total Sale (7,200,960.33) 7,244,850.33 (38,190.63) 7,283,040.96 19,412.68 TOTAL
DISPOSITIONS (13,200,960.33) 13,244,850.33 (38,190.63) 13,283,040.96 19,412.68 OTHER

TRANSACTIONS
Coupon 05/01/2026 3137FLMV3 0.00 FHMS K-090 A2 3.422
02/25/2029 4.73% 3,869.71 0.00 3,869.71 0.00
Coupon 05/01/2026 3137H9D71 0.00 FHMS K-750 A2 3.0
09/25/2029 4.62% 6,250.00 0.00 6,250.00 0.00
Coupon 05/01/2026 3137FQ3Z4 0.00 FHMS K-101 A2 2.524
10/25/2029 4.42% 5,216.27 0.00 5,216.27 0.00
Coupon 05/01/2026 3137HA4B9 0.00 FHMS K-751 A2 4.412
03/25/2030 4.41% 9,191.67 0.00 9,191.67 0.00
Coupon 05/01/2026 3137FNAE0 0.00 FHMS K-095 A2 2.785
06/25/2029 4.39% 2,320.83 0.00 2,320.83 0.00
Coupon 05/01/2026 3137FPJG1 0.00 FHMS K-099 A2 2.595
09/25/2029 4.38% 6,055.00 0.00 6,055.00 0.00
Coupon 05/01/2026 3137FRUT6 0.00 FHMS K-106 A2 2.069
01/25/2030 4.28% 4,655.25 0.00 4,655.25 0.00
Coupon 05/01/2026 3137FMTY8 0.00 FHMS K-094 A2 2.903
06/25/2029 3.87% 7,257.50 0.00 7,257.50 0.00
Coupon 05/01/2026 3137FPHK4 0.00 FHMS K-098 A2 2.425
08/25/2029 3.83% 4,243.75 0.00 4,243.75 0.00
City of Santa Barbara Managed | Account #11204 | As of May 31, 2026 Execution Time: 06/03/2026 05:36:38 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss
Coupon 05/01/2026 3137FMCR1 0.00 FHMS K-093 A2 2.982
05/25/2029 3.82% 6,095.96 0.00 6,095.96 0.00
Coupon 05/01/2026 3137FLN91 0.00 FHMS K-091 A2 3.505
03/25/2029 3.80% 7,506.54 0.00 7,506.54 0.00
Coupon 05/07/2026 69371RU20 0.00 PACCAR FINANCIAL
CORP 4.0 11/07/2028 4.02% 30,300.00 0.00 30,300.00 0.00 Coupon 05/15/2026 58768YAD7 0.00 MBALT 2025-A A3 4.61
04/16/2029 4.66% 5,205.46 0.00 5,205.46 0.00
Coupon 05/15/2026 44935XAD7 0.00 HART 2025-B A3 4.36
12/17/2029 4.36% 3,742.33 0.00 3,742.33 0.00
Coupon 05/15/2026 92970QAJ4 0.00 WFCIT 2025-1 A 4.34
05/15/2030 4.33% 7,721.58 0.00 7,721.58 0.00
Coupon 05/15/2026 9128286T2 0.00

UNITED STATES
TREASURY 2.375
05/15/2029

4.14% 59,375.00 0.00 59,375.00 0.00
Coupon 05/15/2026 02079KAW7 0.00 ALPHABET INC 4.1
11/15/2030 4.04% 45,202.50 0.00 45,202.50 0.00
Coupon 05/15/2026 31422X2U5 0.00

FEDERAL

AGRICULTURAL

MORTGAGE CORP

3.625 05/15/2026

3.62% 36,250.00 0.00 36,250.00 0.00
Coupon 05/16/2026 362549AD9 0.00 GMCAR 2025-2 A3 4.28
04/16/2030 4.71% 2,318.33 0.00 2,318.33 0.00
Coupon 05/16/2026 89236TMF9 0.00 TOYOTA MOTOR CREDIT
CORP 5.05 05/16/2029 4.55% 82,062.50 0.00 82,062.50 0.00 Coupon 05/20/2026 362962AD4 0.00 GMALT 2025-2 A3 4.58
05/22/2028 4.84% 4,732.67 0.00 4,732.67 0.00
Coupon 05/20/2026 023135CT1 0.00 AMAZON.COM INC 4.1
11/20/2030 4.03% 41,000.00 0.00 41,000.00 0.00
Coupon 05/20/2026 89240NAD4 0.00 TLOT 2025-B A3 3.96
11/20/2028 3.97% 5,940.00 0.00 5,940.00 0.00
Coupon 05/20/2026 3130AMDY5 0.00 FEDERAL HOME LOAN
BANKS 1.0 05/20/2026 1.00% 10,000.00 0.00 10,000.00 0.00 City of Santa Barbara Managed | Account #11204 | As of May 31, 2026 Execution Time: 06/03/2026 05:36:38 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss
Coupon 05/23/2026 857449AE2 0.00

STATE STREET BANK
AND TRUST CO 4.782
11/23/2029

4.56% 65,752.50 0.00 65,752.50 0.00
Coupon 05/25/2026 096912AD2 0.00 BMWLT 2025-1 A3 4.43
06/26/2028 4.82% 2,510.33 0.00 2,510.33 0.00
Coupon 05/25/2026 05594HAD5 0.00 BMWLT 2025-2 A3 3.97
09/25/2028 4.32% 4,697.83 0.00 4,697.83 0.00
Coupon 05/31/2026 91282CKT7 0.00

UNITED STATES
TREASURY 4.5
05/31/2029

4.59% 45,000.00 0.00 45,000.00 0.00
Coupon 05/31/2026 91282CJN2 0.00

UNITED STATES
TREASURY 4.375
11/30/2028

4.33% 43,750.00 0.00 43,750.00 0.00
Coupon 05/31/2026 91282CNG2 0.00

UNITED STATES
TREASURY 4.0
05/31/2030

4.11% 40,000.00 0.00 40,000.00 0.00
Coupon 05/31/2026 91282CMA6 0.00

UNITED STATES
TREASURY 4.125
11/30/2029

4.08% 61,875.00 0.00 61,875.00 0.00
Coupon 05/31/2026 91282CHE4 0.00

UNITED STATES
TREASURY 3.625
05/31/2028

4.07% 36,250.00 0.00 36,250.00 0.00
Coupon 05/31/2026 91282CPN5 0.00

UNITED STATES
TREASURY 3.5
11/30/2030

3.68% 49,000.00 0.00 49,000.00 0.00
Coupon 05/31/2026 912828YU8 0.00

UNITED STATES
TREASURY 1.625
11/30/2026

1.86% 16,250.00 0.00 16,250.00 0.00
Coupon 05/31/2026 91282CCF6 0.00

UNITED STATES
TREASURY 0.75
05/31/2026

0.88% 7,500.00 0.00 7,500.00 0.00
Total Coupon 0.00 769,098.51 0.00 769,098.51 0.00
Custody Fee 05/22/2026 CCYUSD (1,797.63) Cash 0.00% (1,797.63) 0.00 (1,797.63) 0.00 Total Custody Fee (1,797.63) (1,797.63) 0.00 (1,797.63) 0.00 City of Santa Barbara Managed | Account #11204 | As of May 31, 2026 Execution Time: 06/03/2026 05:36:38 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss
Dividend 05/31/2026 31846V807 0.00 FIRST AMER:TRS OBG Y 3.26% 9,150.23 0.00 9,150.23 0.00 Total Dividend 0.00 9,150.23 0.00 9,150.23 0.00
Management Fee 05/14/2026 CCYUSD (10,670.95) Cash 0.00% (10,670.95) 0.00 (10,670.95) 0.00 Total
Management Fee (10,670.95) (10,670.95) 0.00 (10,670.95) 0.00 Principal Paydown 05/01/2026 3137FMCR1 3,023.38 FHMS K-093 A2 2.982 05/25/2029 3.82% 3,023.38 -- 3,023.38 0.01
Total Principal
Paydown 3,023.38 3,023.38 -- 3,023.38 0.01

IMPORTANT DISCLOSURES
Chandler Asset Management, Inc. (“Chandler”) is an SEC registered investment adviser. For additional information about our firm, please see our current disclosures (Form ADV).

To obtain a copy of our current disclosures, you may contact your client service representative by calling the number on the front of this statement or you may visit our website at www.chandlerasset.com.

Information contained in this monthly statement is confidential and is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of this statement, but may become outdated or superseded at any time without notice.

Custody: Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.

Valuation: Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance: Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE PERMITS USE OF THE ICE INDICES AND RELATED DATA ON AN “AS IS” BASIS; ICE, ITS AFFILIATES AND

THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM.

NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY PROVIDERS GUARANTEE THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN “AS IS” BASIS AND LICENSEE’S USE IS AT LICENSEE’S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, ENDORSE, OR RECOMMEND CHANDLER, OR ANY OF ITS PRODUCTS OR SERVICES.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Ratings: Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end.

BENCHMARK INDEX & DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr US Treasury & Agency
Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.

ENDING BALANCE AS OF May 31, 2026
Book
Description Value
River City Bank Lockbox Account $ 1,065,685
River City Bank ICS (Investment Account) 20,353,529
Total Cash and Investments $ 21,419,214
May 31, 2026
ATTACHMENT 2

COMMUNITY CHOICE AGGREGATION (CCA)

CITY OF SANTA BARBARA
Summary of Cash and Investments
5/1/2026 to 5/31/2026

CITY OF SANTA BARBARA
PARS Post-Employment Benefits Trust
Account Summary
Source 5/1/2026 Contributions Earnings Expenses Distributions Transfers 5/31/2026 PENSION 1002 $2,828,637.96 $0.00 $66,353.57 $1,355.08 $0.00 $0.00 $2,893,636.45 Totals $2,828,637.96 $0.00 $66,353.57 $1,355.08 $0.00 $0.00 $2,893,636.45 Investment Selection
Source

PENSION
Investment Objective
Source

PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years PENSION 2.35% 3.01% 16.65% - - - 1/26/2024
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.

Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.

Account Report for the Period
Balance as of
Moderate - Strategic Blend
Balance as of
The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments.

Plan's Inception Date
City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Public Hearing Regarding Parking and Business Improvement Area Annual Assessment Report for Fiscal Year 2027
[Resolution]
Recommendation: That Council:

Discussion:

The Santa Barbara City Council, as the governing body of the Parking and Business Improvement Area (PBIA), is required by California State Law to prepare and adopt an Annual Assessment Report (Annual Report) describing any proposed changes to the PBIA District’s boundaries, benefit zones, business classification, and method and basis of levying assessments. The Annual Report must be prepared prior to the beginning of each fiscal year.

On May 14, 2026, the Downtown Parking Committee (DPC), serving as the PBIA Advisory Board, recommended approval of the PBIA Annual Report for Fiscal Year 2027, included as an Exhibit to the Resolution. The DPC emphasized that an update is needed prior to Fiscal Year 2028, and a status quo assessment is warranted for Fiscal Year 2027 due to the development of the State Street Master Plan, the formation of a Community Benefit Improvement District, and current economic conditions. The PBIA is the assessment mechanism that allows the City of Santa Barbara to assess parking rates to customers, visitors, and clients of the Downtown area.

Agenda Item No. 22
Council Agenda Report
Public Hearing Regarding Parking and Business Improvement Area Annual Assessment Report for Fiscal Year 2027 [Resolution]
June 30, 2026

Page 2 ends

For Fiscal Year 2027, staff proposes a status quo Draft Annual Report with no changes to the PBIA benefit zones, the basis for levying assessments, the calculations and formulas, or to the classifications of businesses.

The Downtown Parking Program budget is funded primarily by hourly parking revenues and, to a lesser extent, by PBIA assessments and parking permit sales. PBIA revenues are used to offset a portion of the cost of operating and maintaining the Downtown parking lots. This 56-year partnership between the Downtown business community and the Downtown Parking Program has helped support the economic vitality of Santa Barbara’s Downtown.

Budget/Financial Information:

The PBIA assessment usually generates about $1 million in revenue each year. PBIA contributions for Fiscal Year 2026 were originally expected to be approximately $1,000,000. However, PBIA receipts for the first 6 months of Fiscal Year 2025 were weaker than expected, causing a downward revision of the year-end projection for Fiscal Year 2026 to $950,000. Staff expects this level to rebound back to approximately $1 million in PBIA revenue for Fiscal Year 2027 and have maintained this figure for the Fiscal Year 2027 budget.

Environmental Review:

The intent to levy the PBIA Assessment Rates for Fiscal Year 2027 and approval of the PBIA Annual Assessment Report for Fiscal Year 2027 falls outside of the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378 (b)(5) as administrative activities of governments that will not result in direct physical changes in the environment are not subject to CEQA environmental review.

The Annual Report will be filed with the City Clerk’s Office as required by law and is available upon request by contacting the Public Works Department at [email protected] or (805) 564-5377.

Prepared By: Sarah Clark, Downtown Team Manager/EP/nv
Submitted By: Anthony Valdez, Deputy City Administrator Approved By: Kelly McAdoo, City Administrator
Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA FIXING AND ASSESSING THE PARKING AND

BUSINESS IMPROVEMENT AREA (PBIA) ASSESSMENT
RATES FOR FISCAL YEAR 2027; AND CONFIRMING

APPROVAL OF THE PBIA ANNUAL ASSESSMENT REPORT
FOR FISCAL YEAR 2027.

WHEREAS, pursuant to Section 4.37.010 of the Municipal Code of the City of Santa Barbara, there is hereby levied upon businesses located within the Downtown Parking and Business Improvement Area (PBIA) a special business assessment rate; and WHEREAS, the revenues derived from this assessment in Fiscal Year 2027 shall be applied to the cost of providing low cost, customer-oriented public parking in the Downtown of Santa Barbara.

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

1. The quarterly assessments shall begin on July 1, 2026.

2. The rates are established pursuant to the following schedule and applicable sections of all previous resolutions related to the PBIA assessments are hereby repealed.

3. The attached PBIA Annual Assessment Report for Fiscal Year 2026 (Exhibit) is hereby confirmed on June 30, 2026

4. Parking and Business Improvement Area Rates:

I. Retail and/or Wholesale Businesses (Including Restaurants):

Group A: Average sale of less than $20, $0.56 per $100 of gross sales.

Group B: Average sale between $20 and $100, $0.29 per $100 of gross sales.

Group C: Average sale of more than $100, $0.16 per $100 of gross sales.

Group D: Movie theaters only, $0.16 per $100 of gross sales.

Group E: Fitness Facilities/Health Clubs, $0.29 per $100 of gross sales.

Average sale is computed by dividing the total gross sales for the year by the number of sales transactions.

II. Financial Institutions:
$0.48* per usable square foot.

III. Stock and Bond Brokerage Offices:
$81.30* per broker.

IV. Tranist Facilities and Bus Depots:
$0.06* per usable square foot.

V. Professional:
$32.50* per person practicing the profession, and $16.30* for each nonprofessional in addition to the above.

VI. All Categories Not Otherwise Provided For:

Group A: Educational Facilities: $0.19* per usable square foot.

Group B: Miscellaneous (All Classifications not otherwise provided for): $0.19* per usable square foot.

VII. Hotel and Motels:
# of assessed rooms x $1.50/day x 30 days x 3 months x .50 occupancy = quarterly charges.

Assessed rooms = # of rooms less on-site parking spaces provided.

No patron parking credit would be offered as it is part of the calculation. *Rates for these categories are shown for annual assessment. To determine quarterly assessments, divide rates by four.

The City Clerk’s Office will assign a number to the resolution after Council adoption. The City Clerk’s Office will prepare a vote sheet, which certifies the adoption of the resolution.

Exhibit
City of Santa Barbara
Parking and Business Improvement Area
(PBIA)
Fiscal Year 2027
ANNUAL

ASSESSMENT
REPORT
Exhibit

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................3 PROPOSED CHANGES...............................................................................................3 IMPROVEMENTS AND ACTIVITIES ............................................................................3

ESTIMATED OPERATING COSTS OF THE CITY'S DOWNTOWN PARKING PROGRAM FOR FISCAL YEAR 2027..........................................................................4 PROJECTED FISCAL YEAR 2027 DOWNTOWN PARKING PROGRAM REVENUES ......................................................................................................................................5 REVENUE CARRYOVERS...........................................................................................5 PBIA RATES .................................................................................................................6 I. Retail and/or Wholesale Businesses (Including Restaurants)................................6 II. Financial Institutions ..............................................................................................6 III. Stock and Bond Brokerage Offices.......................................................................6 IV. Transit Facilities and Bus Depots.........................................................................6 V. Professional ..........................................................................................................6 VI. All Categories Not Otherwise Provided For..........................................................6 VII. Hotel and Motels .................................................................................................6 Exhibit

INTRODUCTION
This report, filed annually as required by the California Parking and Business Improvement Law of 1989, will provide an explanation of any proposed changes, including, but not limited to the boundaries of the adopted City of Santa Barbara Downtown Parking and Business Improvement Area (PBIA) or any benefit zones within the area, the basis for levying the assessments, and any changes in the classifications of businesses.

The PBIA assessments benefit the City of Santa Barbara’s (City) Downtown Parking Management Program, which operates and maintains seven public surface parking lots and five structures in the downtown core business area. Providing a total of 3,215 parking spaces, the program is oriented towards clients and shoppers. The parking system is directed by the City’s Circulation Element to increase the available public parking and reduce the need for employee parking in the downtown core. Employee parking is mitigated by alternative transportation initiatives to increase carpooling, bicycling, and mass transit programs. The Downtown Parking budget is funded primarily by hourly parking revenues, and to a lesser extent, by the PBIA assessment and parking permit revenue. The PBIA revenues are directed solely towards hourly employee salaries and utility costs in support of the operation and maintenance of the parking lots. Revenues derived from hourly parking fees and monthly permits support the balance of operating expenses remaining from the PBIA assessment and alternative transportation programs.

Attached hereto and incorporated by reference is the “Addendum to the Parking and Business Improvement Area Final Engineer's Report of Formula and Methodology of Assessment dated October 5, 1999” (Addendum), which is on file at the City Clerk's Office, and which shall form the basis of the Annual Report.

PROPOSED CHANGES
For Fiscal Year 2027, there are no changes to the PBIA benefit zones, the basis for levying the assessments or any changes in the classifications of businesses.

IMPROVEMENTS AND ACTIVITIES
The PBIA assessments replace the requirements placed on businesses to provide their own onsite customer parking. A parking rate, designed to promote short-term customer and client parking, is currently in effect in all City-operated Downtown Parking lots. These facilities are maintained and operated by the City's Downtown Parking staff.

Exhibit

ESTIMATED OPERATING COSTS OF THE CITY'S
DOWNTOWN PARKING PROGRAM FOR FISCAL YEAR 2027

EXPENSES PBIA

PARKING

PROGRAM TOTAL
Allocated Costs $2,242,305 $2,242,305
Appropriated Reserves $10,000 $10,000
Credit Card Fees $331,469 $331,469
Hourly Salaries & Benefits $597,768 $1,649,755 $2,247,523 Permanent Salaries & Benefits $2,980,292 $2,980,292
Transfers $1,155,000 $1,155,000
Special Projects $130,093 $130,093
Supplies & Services $1,290,427 $1,290,427
Utilities $402,232 $0 $402,232

TOTAL OPERATING
EXPENSES $1,000,000 $9,789,341 $10,789,341
Capital Program Expenses $1,155,000 $1,155,000
TOTAL EXPENSES $1,000,000 $10,944,341 $11,944,341
Exhibit
PROJECTED FISCAL YEAR 2027 DOWNTOWN PARKING

PROGRAM REVENUES

REVENUE TOTAL
Hourly Revenue $7,194,931
Monthly Parking $1,638,615
Billed Revenue $123,000
Bicycle Parking $4,000
Electric Vehicle Charging Fees $2,000
Interest Income $145,000
Project Planner Revenue $30,000
Transfers In $1,155,000
Rents $403,649
Residential Permits $101,500
Special Parking $58,500
Misc & Insurance Reimbursements $11,500
TOTAL OPERATING REVENUES $10,867,695
PBIA Assessment $1,000,000
TOTAL REVENUE $11,867,695
The PBIA assessments, as estimated, will cover approximately 9.3% of the annual operating expenses for Fiscal Year 2027.

REVENUE CARRYOVERS
No excess PBIA revenues will be carried over from the Fiscal Year 2026 Operating Budget.

Exhibit

PBIA RATES
A more detailed basis for levying the assessment is explained in the Addendum to the 1999 Engineer's Report. Rates for the categories below are shown for annual assessment. To determine quarterly payments, divide rates by four.

I. Retail and/or Wholesale Businesses (Including Restaurants) GROUP A: Average sale of less than $20, $0.56 per $100 of gross sales.

GROUP B: Average sale between $20 and $100, $0.29 per $100 of gross sales.

GROUP C: Average sale of more than $100, $0.16 per $100 of gross sales.

GROUP D: Movie theaters only, $0.16 per $100 of gross sales.

GROUP E: Fitness Facilities/Health Clubs, $0.29 per $100 of gross sales.

Average sale is computed by dividing the total gross sales for the year by the number of sales transactions.

II. Financial Institutions
$0.48* per square foot of usable space.

III. Stock and Bond Brokerage Offices
$81.30* per broker.

IV. Transit Facilities and Bus Depots
$0.06* cents per square-foot of usable building space.

V. Professional
$32.50* per person practicing the profession, and $16.30* for each nonprofessional.

VI. All Categories Not Otherwise Provided For
GROUP A: Educational Facilities (non-public) - $0.19* per square foot of usable building space.

GROUP B: Miscellaneous: $0.19* per square foot of usable space.

VII. Hotel and Motels
# of assessed rooms x $1.50/day x 30 days x 3 months x .50 occupancy = quarterly charges
Assessed rooms = # of guest rooms (-) on-site parking spaces provided No patron parking credit would be offered as it is part of the calculation.

City of Santa Barbara
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Fire Department
Subject: Coastal Wildfire Suppression Assessment District [Resolution] Recommendation: That Council:

A. Open the public hearing and provide opportunity for public comment; B. Provide a last call for ballots, close the public input portion of the public hearing, and tally the votes with City Staff in Room 15;
C. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara establishing the Coastal Wildfire Suppression Assessment District and levy assessments therein, provided that, upon tabulation of the assessment ballots weighted according to the proportional financial obligation of each affected parcel, a majority protest as defined by Article XIII D of the California Constitution does not exist; and
D. Read the title of the Ordinance and/or Resolution and, if there is no objection from any Councilmember present, waive further reading pursuant to Section 511 of the Santa Barbara City Charter.

Executive Summary:

The City Council is being asked to consider the formation of the Coastal Wildfire Suppression Assessment District to fund enhanced wildfire prevention, mitigation, and suppression services within the Coastal and Coastal Interior High Fire Hazard Area Zones. As described in the 2021 Community Wildfire Protection Plan and the attached Engineer’s Report, these areas face elevated wildfire risk due to a combination of vegetation, topography, weather, and wildland-urban interface conditions. Because of these factors, enhanced fire prevention services are being proposed to reduce fire risk and improve emergency response capabilities.

As part of the development of the proposed Assessment, a survey was distributed to property owners within the proposed District boundaries and those results were presented to City Council on April 21, 2026. Subsequently, Resolution No. 2026-030 was adopted with the intention to establish the Coastal Wildfire Suppression Assessment District and Agenda Item No. 23
Council Agenda Report
Coastal Wildfire Suppression Assessment District [Resolution] June 30, 2026

Page 2 ends

levy assessments therein, and preliminarily approve the Engineer’s Report. In addition, Resolution No. 2026-031 was adopted to establish Proposition 218 Assessment balloting procedures in accordance with Article XIII D of the California Constitution. Notices and assessment ballots were mailed to all owners of record of assessable parcels within the proposed Assessment District on May 1, 2026. In accordance with Government Code Sections 53759.1 and 53759.2 and the City’s adopted balloting procedures, written objections to the proposed assessment were due by June 15, 2026, and the City has provided a substantive written response to any timely written objection received.

Completed assessment ballots may be returned until the close of the public input portion of the public hearing today, on June 30, 2026, the same day the Council will consider adoption of the resolution establishing the Assessment District and ordering the levy.

Discussion:

Background
Since 2006, the City has successfully implemented a Wildfire Suppression Assessment program in the Foothill and Extreme Foothill Fire Hazard Zones. This Assessment has allowed the City of Santa Barbara Fire Department to provide enhanced fire suppression services within these areas.

The Fire Department has identified the opportunity to establish a funding mechanism to support wildfire suppression, prevention, and mitigation services within the Coastal areas of the City. The proposed Coastal Wildfire Suppression Assessment District is intended to fund enhanced services that address wildfire risk and public safety, including vegetation management, defensible space, evacuation planning, and fire response readiness.

As detailed in the Engineer’s Report prepared for the proposed Assessment District, the assessment is designed to equitably distribute costs based on the proportional special benefit received by each property. The Engineer’s Report outlines the methodology used to evaluate wildfire risk factors and determine the relative benefit to properties within the District.

The proposed Assessment would fund a defined set of services provided by the City of Santa Barbara Fire Department, including roadside vegetation clearance supporting evacuation routes, defensible space inspection and chipping programs, and vegetation management activities. These services are intended to reduce wildfire risk, protect life and property, and improve the City’s ability to respond to wildfire events within the Coastal and Coastal Interior Wildfire Hazard Zones. The Engineer’s Report establishes that these services provide a direct and proportional special benefit to properties within the proposed Assessment District and are consistent with the requirements of Proposition 218.

Council Agenda Report
Coastal Wildfire Suppression Assessment District [Resolution] June 30, 2026

Page 3 ends

Assessment and Services
The proposed Coastal Wildfire Suppression Assessment would fund a defined set of wildfire prevention, mitigation, and suppression support services provided by the City of Santa Barbara Fire Department within the Coastal and Coastal Interior High Fire Hazard Area Zones. As described in the Engineer’s Report, these areas are characterized by elevated wildfire risk due to fuel conditions, terrain, weather patterns, and the presence of development within the wildland-urban interface.

The proposed Assessment District has been developed in accordance with the requirements of Proposition 218. The Engineer’s Report identifies the special benefits provided to properties and establishes a methodology for apportioning the costs of services based on those benefits.

The Assessment would fund services that are above and beyond the City’s baseline level of fire protection services and are specifically designed to reduce wildfire risk and improve emergency response within the identified zones. These services include, but are not limited to:
• Roadside vegetation management and clearance to maintain defensible evacuation routes and reduce fire spread along public corridors. • Defensible space inspection and compliance programs to support property-level risk reduction.
• Vegetation management and fuel reduction activities, including chipping and related programs.
• Planning, coordination, and implementation of targeted wildfire mitigation efforts in high-risk areas.

These services are intended to reduce the likelihood and severity of wildfire events, support safe evacuation, and enhance the City’s ability to respond effectively to wildland fire incidents within the proposed Assessment District. The Engineer’s Report concludes that these activities provide a direct and special benefit to properties within the proposed Assessment District by reducing wildfire exposure and improving protection of structures.

The total cost of providing the enhanced services is allocated to properties within the Assessment District based on a methodology that reflects the proportional special benefit received. As detailed in the Engineer’s Report, the assessment methodology considers factors related to structure value (such as land use and parcel characteristics) as well as Council Agenda Report
Coastal Wildfire Suppression Assessment District [Resolution] June 30, 2026

Page 4 ends

fire risk (such as vegetation, topography, and weather) to ensure that assessments are distributed in a manner consistent with Proposition 218 requirements.

The Engineer’s Report also calculates the general benefit provided by the proposed services stemming from parcels proximate to the Assessment District and from the public at large. This general benefit is calculated to be 8.8% of the total benefit provided and is not assessed to properties within the District.

The Services funded by the proposed assessment will be provided throughout the proposed District and are intended to reduce wildfire risk and enhance the City’s ability to respond to wildfire incidents. The analysis demonstrates that properties within the Coastal and Coastal Interior Zones receive a substantially similar level of special benefit, supporting the establishment of a single Zone of Benefit and a single rate across the entire proposed Assessment District.

If successful, the Assessment would generate approximately $261,500 in its first year. An optional inflationary mechanism (tied to the Los Angeles-Riverside-Orange County Area Consumer Price Index for All Urban Consumers) would allow for annual increases, not to exceed 4% per year. A general benefit contribution equal to 8.8% of total program costs ($277,262) results in an annual contribution of approximately $25,000.

Budget:

Roadside Vegetation Clearance Supporting Main Evac. Routes $102,037 Defensible Space $111,663
Vegetation Management $ 63,562
Total for installation, Maintenance, and Servicing $277,262 Less: Contribution for General Benefits ($24,347)
Incidental Costs:

District Administration and Levy Management $ 6,100
Allowance for County Collection $ 2,500
Subtotal – Incidentals $ 8,600
Total Wildfire Suppression Assessment Budget $261,515
Council Agenda Report
Coastal Wildfire Suppression Assessment District [Resolution] June 30, 2026

Page 5 ends

Based on this cost and an analysis identifying 2,127 SFEs within the proposed Assessment District, a rate of $122.95 per SFE is calculated ($261,515 / 2,127 = $122.95). This annual rate would apply to most single-family homes within the Assessment District, with variable rates for other property types (as shown below).

Property Type: Benefit Factors (SFEs) Unit
Single Family 1.0000 per each
Multi-Family 0.3215 per unit
Commercial/Industrial 0.6175 per acre
Office 0.5454 per acre
Institutional 0.3705 per each
Storage 0.0892 per acre
Agricultural 0.0803 per acre
RangeLand 0.0155 per acre
Vacant 0.0446 per each
The proposed Assessment would establish a reliable, ongoing funding source to support these services, which are necessary to address current and future wildfire risk conditions within the Coastal and Coastal Interior Areas. Without this funding, the City’s ability to implement and sustain these enhanced wildfire mitigation and response activities would be severely limited.

Next Steps
That Council adopt a Resolution to establish the Coastal Wildfire Suppression Assessment District and levy assessments therein.

Budget/Financial Information:

The proposed assessment will generate approximately $261,500 annually to fund wildfire prevention and mitigation Services within the Assessment District.

Council Agenda Report
Coastal Wildfire Suppression Assessment District [Resolution] June 30, 2026

Page 6 ends

Sustainability Impact:

The Wildfire Suppression Assessment District focusing on vegetation removal, defensible space, and home hardening can provide meaningful environmental sustainability benefits alongside risk reduction. Vegetation management practices, including selective thinning and the on-site chipping of biomass, help prevent catastrophic wildfire while supporting waste prevention; chipped material is dispersed back onto landscapes as mulch where feasible, improving soil health, reducing erosion, conserving moisture, and minimizing the need for hauling and disposal. Home hardening measures often incorporate green building components such as fire-resistant, durable, and sometimes recycled materials, which can extend building lifespans and reduce resource consumption over time. These efforts also contribute to pollution prevention and hazardous vegetation reduction by lowering the likelihood of structure loss and the associated release of toxins during fires.

In addition, maintaining defensible space can support targeted habitat restoration and water conservation by promoting drought tolerant, fire-resilient landscaping. Collectively, these strategies align with broader environmental goals by reducing greenhouse gas emissions from large-scale fires, conserving resources, and enhancing community resilience.

Environmental Review:

The consultant and staff have determined this falls under the final Program Environmental Impact Report for the Community Wildfire Protection Plan.

Attachment:

1. Coastal Engineer’s Report
Prepared By: Ryan DiGuilio, Fire Marshal
Submitted By: Chris Mailes, Fire Chief
Approved By: Kelly McAdoo, City Administrator
FY 2026-27
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
ENGINEER’S REPORT
March 2026
Pursuant to California Government Code Section 50078
et seq., and Article XIII D of the California Constitution

ATTACHMENT
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
i
(This Page Intentionally Left Blank)
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
ii
City of Santa Barbara
City Council
Randy Rowse, Mayor
Wendy Santamaria, Councilmember
Mike Jordan, Councilmember
Oscar Gutierrez, Councilmember
Kristen Sneddon, Councilmember
Eric Friedman, Councilmember
Meagan Harmon, Councilmember
Fire Prevention Bureau
Chris Mailes, Fire Chief
Ryan DiGuilio, Fire Marshal
City Attorney’s Office
John Doimas, City Attorney
Arielle Zamora, Assistant City Attorney
Engineer of Work
SCI Consulting Group
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
iii
Table of Contents
Introduction ............................................................................................................... 1 Background ................................................................................................................................ 1 Coastal and Coastal Interior High Fire Hazard Zones ................................................................ 3 Assessment Process................................................................................................................... 4 Legislative and Legal Understanding ........................................................................... 7 Proposition 218 ......................................................................................................................... 7 Silicon Valley Taxpayers Association v Santa Clara County Open Space Authority .................. 7 Dahms v. Downtown Pomona Property .................................................................................... 8 Bonander v. Town of Tiburon .................................................................................................... 8 Beutz v. County of Riverside ...................................................................................................... 8 Golden Hill Neighborhood Association v. City of San Diego ..................................................... 8 Compliance with Current Law ................................................................................................... 9 Description of Services ............................................................................................. 10 Roadside Vegetation Clearance Supporting Main Evacuation Routes .................................... 11 Defensible Space ..................................................................................................................... 11 Vegetation Management ........................................................................................................ 12 Cost and Budget ....................................................................................................... 13 Method of Apportionment ....................................................................................... 14 Method of Apportionment ...................................................................................................... 14 Discussion of Benefit ............................................................................................................... 14 Benefit Factors ........................................................................................................................ 15 Benefit Finding ........................................................................................................................ 17 General Versus Special Benefit................................................................................................ 18 Calculating General Benefit ..................................................................................................... 20 Zones of Benefit ...................................................................................................................... 22 Assessment Apportionment .................................................................................................... 28 Method of Assessment ............................................................................................................ 28 Criteria and Policies ................................................................................................................. 33 Assessment .............................................................................................................. 35 Assessment Diagram ................................................................................................ 37 Appendices .............................................................................................................. 39 Appendix A – Assessment Roll, FY 2026-27 ............................................................................. 39 City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
iv
Appendix B – California Government Code Section 50078 et seq. ......................................... 40 Appendix C – Article XIIID of the California Constitution ........................................................ 43 City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
v
List of Figures
Figure 1 – Wildland Fire History in Santa Barbara County ............................................................... 1 Figure 2 - Cost and Budget FY 2026-27 .......................................................................................... 13 Figure 3 - Benefit to Property Outside the Assessment District Calculation ................................. 20 Figure 4 - General Benefit Calculation ........................................................................................... 22 Figure 5 - Combined Hazard Assessment Scoring .......................................................................... 23 Figure 6 - Other Fire Hazard Factor Scoring ................................................................................... 23 Figure 7 - Relative Hazard/Risk Scoring for High Fire Hazard Area Zones ..................................... 24 Figure 8 - Wildland Fire Risk Factors .............................................................................................. 24 Figure 9 - Structure Value Factors ................................................................................................. 30 Figure 10 - Coastal WFSAD Assessment Diagram .......................................................................... 38 City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
1 Introduction
Background
The City of Santa Barbara (referred to throughout as the “City”) is located about 100 miles northwest of Los Angeles, largely on the slopes between the Pacific Ocean and the Santa Ynez Mountains. The City of Santa Barbara Fire Department provides fire services throughout the City limits. Fire services include fire suppression, protection, prevention, evacuation planning, and education.

Due to topography, location, climate and infrastructure, the Santa Barbara community has a relatively high inherent risk of wildland fires. Listed below are some of the major wildland fires that have occurred in Santa Barbara County since 1970. Notably, the 2021 Loma Fire burned approximately nine acres above Loma Alta Drive on the eastern boundary of the Coastal Interior High Fire Hazard Zone.

Figure 1 – Wildland Fire History in Santa Barbara County Year Fire Name Acres Homes Lost
1971 Romero Canyon Fire 14,538 4
1977 Sycamore Canyon Fire 805 234
1977 Hondo Canyon Fire 10,000 0
1979 Eagle Canyon Fire 4,530 5
1990 Painted Cave Fire 4,900 524
1993 Marre Fire 43,864 0
2002 Sudden Fire 7,160 0
2004 Gaviota Fire 7,440 1
2007 Zaca Fire 240,207 0
2008 Gap Fire 9,443 0
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
2 2008 Tea Fire 1,940 210
2009 Jesusita Fire 8,733 80
2016 Sherpa Fire 7,474 0
2016 Rey Fire 32,606 0
2016 Canyon Fire 12,518 0
2017 Thomas Fire 281,893 1,063
2019 Holiday Fire 113 24
2019 Cave Fire 3,126 0
2021 Loma Fire 9 0
2021 Alisal Fire 16,970 12
In response to the considerable wildland fire risk in the area, the City of Santa Barbara Fire Department (“SBFD” or “Fire Department”) prepared a Wildland Fire Plan in January 2004, which identified four High Fire Hazard Area Zones: The Coastal Zone, the Coastal Interior Zone, the Foothill Zone, and the Extreme Foothill Zone. In 2006, the City conducted an assessment balloting which successfully created a Wildfire Suppression Assessment District (“WFSAD”) made up of the Foothill and Extreme Foothill Zones (referred to as the “Foothill WFSAD”). This Assessment District has allowed the City to provide enhanced fire prevention services within the Assessment District’s boundaries each year since its formation.

In 2021, the Fire Department developed a comprehensive, coordinated Community Wildfire Protection Plan (“CWPP”) to support the protection of lives, property, and natural resources threatened by wildland fire within the City.1 This CWPP also updated the City’s 2004 Wildland Fire Plan, accounting for changes in the City’s fire environment. 1 https://santabarbaraca.gov/government/departments/fire-department/wildland-fire/communitywildfire-protection-plan-cwpp City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
3 Coastal and Coastal Interior High Fire Hazard Zones
This Engineer’s Report (“Report”) proposes the formation of a second WFSAD encompassing the Coastal and Coastal Interior High Fire Hazard Area Zones (the “Zones”). These Zones are at a high risk of wildland fires due to the following factors:
 Climate. The coastal climate consists of mild, moist winters and warm, dry summers.

Periods of low humidity, elevated temperatures, and seasonal drying of vegetation increase the likelihood that a spark will ignite a fire. During these conditions, fires can spread rapidly, particularly when combined with offshore wind events.  Topography and Wind Conditions. The Coastal and Coastal Interior Zones include a series of canyons, ridgelines, and slopes that influence wind behavior and fire spread.

Periodic offshore wind conditions, including “Sundowner” winds, can produce hot, dry, and gusty conditions that accelerate fire spread and carry embers into developed areas.

The alignment of certain canyon systems can further increase wind speeds and contribute to rapid fire movement.
 Vegetation and Fuels. The landscape within the Coastal and Coastal Interior Zones consists of a mix of coastal sage scrub, grasslands, landscaped vegetation, and areas of denser fuels including chaparral, oak woodland, and eucalyptus. These fuel types can dry during summer and fall conditions and contribute to fire intensity and spread.

Accumulation of dead and dry vegetation increases the likelihood of ignition and supports sustained wildfire activity.
 Road Systems. Roadway conditions within the Coastal and Coastal Interior Zones vary and include narrow roads, winding hillside streets, long driveways, and dead-end segments. In some areas, vegetation encroachment further reduces roadway width and clearance. These conditions can limit access for emergency response vehicles and complicate evacuation during wildfire events.
 Water Supply. The Coastal and Coastal Interior Zones are generally served by the City’s municipal water system; however, terrain, access, and system configuration can affect the ability to deliver water efficiently during wildfire incidents. These factors can influence firefighting operations and the ability to protect structures under emergency conditions.
 Fire Response Time. The Coastal and Coastal Interior areas are served by the City Fire Department; however, response conditions can be affected by roadway configuration, traffic, and terrain. These factors may influence the time required for fire suppression resources to access certain locations, particularly in hillside areas with constrained access.
 Wildland-Urban Interface Conditions. The Coastal and Coastal Interior Zones include developed neighborhoods located adjacent to or intermixed with wildland vegetation.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
4 These wildland-urban interface conditions increase the likelihood of structure ignition from wind-driven embers and create the potential for fire to spread between vegetation and structures. The proximity of development to vegetated areas increases the demand for wildfire prevention, defensible space, and suppression services.

Assessment Process
This Engineer’s Report was prepared to achieve the following:
1) Contain the information required by Government Code Section 50078.4, including a. A description of each lot or parcel of property to be subject to the assessment. b. The amount of the assessment for each lot or parcel for the initial fiscal year. c. The maximum amount of the assessment which may be levied for each lot or parcel during any fiscal year.
d. The duration of the assessment.
e. The basis of the assessment.
f. The schedule of the assessment.
g. A description specifying the requirements for protest and hearing procedures for the assessment pursuant to Section 50078.6;
2) Establish a budget to provide services to reduce the severity and damage from wildland fires (the "Services") that will be funded by the 2026-27 assessments. 3) Determine the benefits received from the Services by property within the City of Santa Barbara Coastal Wildland Fire Suppression Assessment District (the "Assessment District"). 4) Assign a method of assessment apportionment to lots and parcels within the Assessment District. This Report and the assessments have been made pursuant to the California Government Code Section 50078 et. seq. (the "Code") and Article XIII D of the California Constitution (the “Article”).

The Assessment District is narrowly drawn to include only properties that benefit from the enhanced Services that are provided by the assessment funds. The Assessment Diagram included in this Report shows the boundaries of the Assessment District.

Following submittal of this Report to the City for preliminary approval, the Santa Barbara City Council (the “Council”) may, by Resolution, call for an assessment ballot proceeding and public hearing on the proposed establishment of a Wildfire Suppression Assessment District encompassing the Coastal and Coastal Interior Zones.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
5 If the Council approves such a Resolution, a Notice of Assessment and Assessment Ballot will be mailed to each property owner within the proposed Assessment District boundaries who will be subject to the proposed Assessment. The Notice will include a description of the Services to be funded by the proposed Assessment, the total amount of the proposed Assessment and the amount chargeable to the owner’s parcel, the reasons for the proposed Assessment and the basis upon which it was calculated, and an explanation of the process for submitting a ballot. Each Notice will also include a postage prepaid return envelope and a ballot on which the property owner may mark his or her approval or disapproval of the proposed Assessment as well as affix his or her signature.

After the ballots are mailed to property owners in the proposed Assessment District, a minimum 45-day time period must be provided for the return of the assessment ballots. If utilizing the “exhaustion of remedies” procedure in accordance with California Government Code Section 53759.1, additional time may be applied to this balloting period to provide opportunity to respond to objections.

Following this balloting time period, a public hearing must be held for the purpose of allowing public testimony regarding the proposed assessments. Ballots will be received if previously mailed and received by the public agency before the public hearing, or if physically submitted at the public hearing. At the public hearing, the public will have the opportunity to speak on the issue.

The public hearing is currently scheduled to occur on June 30, 2026. After receiving ballots and public comment, the public input portion of the public hearing will be closed. The public hearing will then recess in order for the ballots to be tabulated.

If it is determined that the assessment ballots submitted in opposition to the proposed Assessment do not exceed the assessment ballots submitted in favor of the Assessment (weighted by the proportional financial obligation of the property for which ballots are submitted), the Council may approve the imposition of Assessment for fiscal year 2026-27 and each fiscal year thereafter. If the Assessment is confirmed and approved, the Council may order the levy of the Assessment to be submitted to the Santa Barbara County Auditor/Controller for inclusion on the property tax roll for fiscal year 2026-27. The levy and collection of the Assessment would continue year-to-year unless terminated by the Council.

The Assessment granted by the ballot proceeding would be for a maximum Assessment rate of $122.95 per single family home, increased each subsequent year by the consumer price index for All Urban Consumers in Los Angeles-Riverside-Orange County Area as of December of each succeeding year, not to exceed 4% per year without a further vote or balloting process.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
6 In the event that the actual assessment rate for any given year is not increased by an amount equal to the maximum of 4% or the yearly CPI change plus any CPI change in previous years that was in excess of 4%, the maximum authorized assessment shall increase by this amount. In such event, the maximum authorized assessment shall be equal to the base year assessment as adjusted by the increase to the CPI, plus any and all CPI adjustments deferred in any and all prior years. The CPI change above 4% can be used in a future year when the CPI adjustment is below 4%.

In each subsequent year for which the Assessment will be continued, an updated proposed budget, assessment rate and an updated assessment roll listing all parcels and their proposed assessment for the upcoming fiscal year shall be prepared and considered by the City Council. At this meeting, the Council will also call for the publication in a local newspaper a legal notice of the intent to continue the Assessment for the next fiscal year and set the date for the noticed public hearing. At the annual public hearing, members of the public can provide input to the Council prior to the Council’s decision on continuing the Services and Assessment for the next fiscal year.

If the assessments are so confirmed and approved, the levies will be submitted to the Santa Barbara County Auditor/Controller for inclusion on the property tax roll for Fiscal Year 2026-27.

The levy and collection of the assessments will continue year-to-year until terminated by the City Council.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
7 Legislative and Legal Understanding
Proposition 218
This assessment was formed consistent with Proposition 218, The Right to Vote on Taxes Act, which was approved by the voters of California on November 6, 1996, and is now Article XIII C and XIII D of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property.

Proposition 218 describes a number of important requirements, including a property-owner balloting, for the formation and continuation of assessments, and these requirements will be satisfied by the process used to establish this proposed assessment.

Silicon Valley Taxpayers Association v Santa Clara County Open Space Authority
In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA vs. SCCOSA”) case. This ruling is the most significant legal decision clarifying Proposition 218. Several of the most important elements of the ruling included further emphasis that:
 Benefit assessments are for special, not general benefit  The services and/or improvements funded by assessments must be clearly defined  Special benefits are directly received by and provide a direct advantage to property in the Assessment District
This Engineer’s Report is consistent with the SVTA vs. SCCOSA decision and with the requirements of Article XIII C and XIII D of the California Constitution because the Services to be funded are clearly defined; the Services are available to all benefiting property in the Assessment District, the benefiting property in the Assessment District will directly and tangibly benefit from improved protection from fire damage, increased safety of property and other special benefits and such special benefits provide a direct advantage to property in the Assessment District that is not enjoyed by the public at large or other property. There have been a number of clarifications made to the analysis, findings and supporting text in this Report to ensure that this consistency is well communicated.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
8 Dahms v. Downtown Pomona Property
On June 8, 2009, the Court of Appeal for the Second District of California amended its original opinion upholding a benefit assessment district for property in the downtown area of the City of Pomona. On July 22, 2009, the California Supreme Court denied review and the court's decision in Dahms became binding precedent for assessments. In Dahms, the court upheld an assessment that conferred a 100% special benefit to the assessed parcels on the rationale that the services and improvements funded by the assessments were provided directly and only to property in the assessment district over and above those services or improvements provided by the city generally.

Bonander v. Town of Tiburon
On December 31, 2009, the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments on the ground that the assessments had been apportioned to assessed property based, in part, on relative costs within sub-areas of the assessment district instead of proportional special benefits.

Beutz v. County of Riverside
On May 26, 2010 the 4th District Court of Appeals issued a decision on the Steven Beutz v. County of Riverside (“Beutz”) appeal. This decision overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits.

Golden Hill Neighborhood Association v. City of San Diego On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
9 Compliance with Current Law
This Engineer’s Report is consistent with the requirements of Article XIII C and XIII D of the California Constitution and with the SVTA decision because the Services to be funded are clearly defined; the Services are available to and will be directly provided to all benefiting property in the Assessment District; and the Services provide a direct advantage to property in the Assessment District that would not be received in absence of the Assessments.

This Engineer’s Report is consistent with Dahms because, similar to the Downtown Pomona assessment validated in Dahms, the Services will be directly provided to property in the Assessment District. Moreover, while Dahms could be used as the basis for a finding of 0% general benefits, this Engineer’s Report establishes a more conservative measure of general benefits.

The Engineer’s Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Services and proportional special benefit to each property. Finally, the Assessments are consistent with Buetz because the general benefits have been explicitly calculated and quantified and excluded from the Assessments.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
10 Description of Services
The City of Santa Barbara Fire Department provides a range of fire protection, prevention, and educational services to the City and its residents.

The following is a description of the proposed wildland fire suppression Services (the “Services”) that would be provided for the benefit of property within the Assessment District. With the passage of this proposed Assessment, the level of Service would be enhanced significantly. The formula below describes the relationship between the final level of improvements, the current baseline level of service, and the enhanced level of improvements funded by the assessment.

Equation 1 - Level of Service
The proposed Services to be undertaken by the City of Santa Barbara Fire Department and the cost thereof paid from the levy of the annual assessment provide special benefit to Assessor Parcels within the Assessment District as defined in the Method of Assessment herein. In addition to the definitions provided by the California Government Code Section 50078 et. seq., (the “Code”) the Services are generally described as follows:
 Implementation of the roadside vegetation clearance program to cover all public roads within the Coastal and Coastal Interior Zones. This program reduces fuel, supports evacuation route efficacy, and decreases fire response times.  Implementation of a defensible space and fire prevention inspection and chipping assistance program for all properties in the Coastal and Coastal Interior Zones.  Implementation of a vegetation management program in the Coastal and Coastal Interior Zones.

As applied herein, “roadside vegetation clearance” means the treatment, clearing, reduction, or modification of vegetation adjacent to public and private roadways within designated fire hazard areas where vegetation poses a fire hazard or impedes safe access for emergency response and evacuation. Such activities are conducted in accordance with Fire Department vegetation clearance standards and applicable provisions of the Santa Barbara Municipal Code, including the California Fire Code as adopted and amended by the City. “Defensible space” means the area surrounding a structure where vegetation is treated, cleared, or reduced to slow the spread of wildfire toward the structure, reduce the potential for structure ignition, and provide a safe working area for firefighters. Defensible space requirements are established pursuant to the California Fire Code, including applicable wildland-urban interface fire area provisions, as adopted and amended by the Santa Barbara Municipal Code.” City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
11 “Vegetation management” means the reduction of wildfire risk through public education, vegetation hazard reduction, and related activities designed to manage vegetation in areas with elevated fire risk. These activities may include treatment of heavy or flammable vegetation, fuel reduction in areas with limited access due to topography or roadway conditions, and actions necessary to improve firefighter safety and reduce wildfire intensity.” More detail on these programs and the benefit they provide is discussed below.

Roadside Vegetation Clearance Supporting Main Evacuation Routes Costs in this category fund activities necessary to maintain safe and effective evacuation routes and emergency access within the wildfire hazard area. Staffing costs include City Fire Department personnel time associated with planning, coordination, and implementation of roadway clearance and evacuation support activities.

Project costs include vegetation removal and clearance along designated evacuation corridors and roadways to maintain adequate horizontal and vertical clearance for emergency vehicles and evacuating residents. These activities include trimming, thinning, and removal of vegetation adjacent to roadways, as well as the utilization of contractors, equipment, and field crews required to perform clearance work.

Project costs also include traffic control signage and notification materials, including letters and door hangers, used to inform residents of project schedules and support safe implementation of roadway clearance activities. Additional costs include reflective curb marking and related visibility enhancements to assist in identifying roadways and access points during emergency response conditions, including reduced visibility due to smoke or nighttime operations.

Tools, supplies, and materials necessary to support evacuation planning and roadway clearance activities are also included.

Defensible Space
Costs in this category fund programs that support defensible space compliance and reduce structure vulnerability to wildfire. Staffing costs include City Fire Department personnel time associated with defensible space inspections, compliance monitoring, enforcement activities, and coordination of related programs, including documentation and data entry of defensible space evaluations into City systems.

Project costs include implementation of defensible space support services, including the annual chipping program for processing vegetation removed by property owners. These costs include coordination, communication, and direct support necessary to implement the program, including contractor services, chipper equipment, hauling trucks, and associated manpower.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
12 Project costs also include disposal services for green waste and vegetation debris generated through defensible space activities, including roll-off and hauling services. Notification materials, including traffic signage, letters, door hangers, and temporary signage, are also included to inform property owners of program schedules and requirements.

Additional costs include landscaper training and outreach to support proper vegetation management practices, as well as property-level risk assessments and home evaluations to identify wildfire vulnerabilities and recommend corrective actions.

Collectively, these activities support property owner compliance with defensible space requirements and reduce the likelihood of structure ignition and fire spread within developed areas.

Vegetation Management
Costs in this category fund fuel reduction and vegetation management activities conducted outside of individual parcels in areas that contribute to wildfire risk. Staffing costs include City Fire Department personnel time associated with planning, coordination, and implementation of vegetation management and fuel reduction projects, including coordination and communication with affected property owners.

Project costs include removal of hazardous vegetation, thinning of fuel loads, and maintenance of vegetation in open space areas, hillside environments, and other high-risk locations. These activities are supported through the use of contractors, equipment, and field crews, and are intended to reduce wildfire intensity and limit the spread of fire toward developed areas.

Project costs also include roll-off dumpsters for debris removal, temporary facilities such as portapotties for field crews, on-site project signage, and notification materials, including letters and door hangers, to inform property owners of project schedules.

This category also includes costs associated with dedicated vegetation management crews and wildfire resiliency projects that implement targeted fuel reduction treatments and improve overall landscape-level fire resistance, as well as community outreach and education efforts related to wildfire preparedness and fire-safe practices.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
13 Total
Budget
Services Costs
Roadside Vegetation Clearance Supporting Main Evacuation Routes Staffing $46,947
Project Costs $55,090
Defensible Space
Staffing $50,573
Project Costs $61,090
Vegetation Management
Staffing $29,182
Project Costs $34,380
Totals for Installation, Maintenance and Servicing $277,262 Less: District Contribution for General Benefits ($24,347) Net Cost of Installation, Maintenance and Servicing to Assessment District $252,915 Incidental Costs:

District Administration and Levy Management $6,100
Allowance for County Collection $2,500
Subtotals - Incidentals $8,600
Total Wildland Fire Suppression District Budget $261,515 (Net Amount to be Assessed)
Assessment District Budget Allocation to Parcels
Total Assessment Budget $261,515
Single Family Equivalent Benefit Units in District 2,127 Assessment per Single Family Equivalent Unit (SFE) $122.95

CITY OF SANTA BARBARA
Coastal Wildland Fire Suppression Assessment
Estimate of Costs
Cost and Budget
Figure 2 - Cost and Budget FY 2026-27
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
14 Method of Apportionment
Method of Apportionment
This section includes an explanation of the special benefits derived from the Services, the criteria for the expenditure of assessment funds and the methodology used to apportion the total assessments to properties within the Assessment District.

The Assessment District area consists of all Assessor Parcels within the Coastal and Coastal Interior High Fire Hazard Areas as defined by the 2021 Community Wildfire Protection Plan. The method used for apportioning the assessment is based upon the proportional special benefits from the Services derived by the properties in the assessment area over and above general benefits conferred on real property or to the public at large. Special benefit is calculated for each parcel in the Assessment District using the following process:

1. Identification of all benefit factors derived from the Improvements

2. Calculation of the proportion of these benefits that are general

3. Determination of the relative special benefit within different areas within the Assessment District

4. Determination of the relative special benefit per property type

5. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit; location, property type, property characteristics, improvements on property and other supporting attributes
Discussion of Benefit
California Government Code Section 50078 et. seq. allows agencies which provide fire suppression services, such as the City of Santa Barbara Fire Department, to levy assessments for fire suppression services. Section 50078 states the following:
“Any local agency which provides fire suppression services directly or by contract with the state or a local agency may, by ordinance or by resolution adopted after notice and hearing, determine and levy an assessment for fire suppression services pursuant to this article.”
In addition, California Government Code Section 50078.1 defines the term “fire suppression” as follows:
“(c) "Fire suppression" includes firefighting and fire prevention, including, but not limited to, vegetation removal or management undertaken, in whole or in part, for the reduction of a fire hazard.”
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
15 Therefore, the Services provided by the Assessment District fall within the scope of services that may be funded by assessments under the Code.

The assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. Moreover, such benefit is not based on any one property owner’s specific use of the Services or a property owner’s specific demographic status. With reference to the requirements for assessments, Section 50078.5 of the California Government Code states:
"(b) The benefit assessment shall be levied on a parcel, class of improvement to property, or use of property basis, or a combination thereof, within the boundaries of the local agency, zone, or area of benefit.”
“The assessment may be levied against any parcel, improvement, or use of property to which such services may be made available whether or not the service is actually used." Proposition 218, as codified in Article XIII D of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." Since assessments are levied on the basis of special benefit, they are not a tax and are not governed by Article XIII A of the California Constitution.

The following section describes how and why the Services specially benefit properties. This benefit is particular and distinct from its effect on property in general or the public at large.

Benefit Factors
In order to allocate the assessments, the Engineer identified the types of special benefit arising from the Services that are provided to property in the Assessment District. These benefit factors confer a direct advantage to the assessed properties; otherwise they would be general benefit.

The following benefit categories have been established that represent the types of special benefit conferred to residential, commercial, industrial, institutional and other lots and parcels resulting from the services to reduce the severity and damage from wildland fires that are provided in the Assessment District. These categories of special benefit are derived from the statutes passed by the California Legislature and other studies, which describe the types of special benefit received by property from the Services of the Assessment District. These types of special benefit are summarized as follows:

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
16 Increased safety and protection of real property assets for all property owners within the Assessment District.

As summarized previously, properties in the Assessment District are currently at higher risk for wildland fires. Uncontrolled fires would have a devastating impact on all properties within the proposed Assessment District. The assessments fund an increase in services to mitigate the wildland fire threat, and thereby can significantly reduce the risk of property damage associated with fires. Clearly, fire mitigation helps to protect and specifically benefits both improved properties and vacant properties in the Assessment District.

The City of Santa Barbara and surrounding landscape exhibits a complex wildfire environment that presents a significant risk to public and firefighter safety and the built and natural environment.2
The City recognizes the potential for significant loss of life, property, and natural resources from wildland fire and has a history of prioritizing development and implementation of a comprehensive wildland fire program.3
Wildland fire represents a growing significant threat to property owners throughout the State, as noted by Cal Fire in reference to the 2020 fire year:

Wildfire represents a significant and increasing threat to property in California. CAL FIRE reports that the 2020 wildfire season burned approximately 4.2 million acres and destroyed more than 10,000 structures statewide, and recent wildfire seasons have continued to result in thousands of structures destroyed each year.4 Protection of Views, Scenery and Other Resource Values, for Property in the Proposed Assessment District
The proposed Assessment District provides funding for the mitigation of the wildland fire threat to protect public and private resources in the Assessment District. This benefits even those properties that are not directly damaged by fire by maintaining and improving the aesthetics and attractiveness of public and private resources in the community, as well as ensuring that such resources remain safe and well maintained.
2 CWPP, 1.
3 CWPP, 2.
4 https://www.fire.ca.gov/incidents/2020/
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
17 Wildfire has the potential to significantly impact viewsheds, scenic resources, and other environmental and community assets within the Assessment District. The CWPP notes that the City’s economy and quality of life are closely tied to its natural and visual resources, and that wildfire events can result in degradation of these resources and disruption to the community.5 Large, high-intensity wildland fire can damage natural resources and lead to the loss of ecosystem services (for example, wildlife habitat, watershed conditions, recreational and aesthetic value).6
[T]he risk for loss or degradation of scenic views from high-intensity wildfire is also increased. Long term and indirect effects... could result in a decrease in the presence of valued scenic attributes.7
Enhanced Utility and Desirability of Properties in the Proposed Assessment District.

The proposed Assessment would fund Services to reduce the severity and damage from wildland fires in the Assessment District. Such Services enhance the overall utility of the properties in the Assessment District and contribute to the desirability of the properties.

Wildland fire affects air quality by producing smoke emissions that may exceed… standards for carbon monoxide, carbon dioxide, methane and non-methane hydrocarbons, and particulate matter less than 10 and 2.5 microns in diameter (PM10 and PM2.5). The amount of chemicals and particulate matter produced in a wildland fire is directly related to the amount of fuel consumed.8
Benefit Finding
In summary, real property located within the boundaries of the Assessment District distinctly and directly benefits from increased safety and protection of real property, increased protection of scenery and views, and enhanced utility of properties in the Assessment District. These are special benefits to property in much the same way that sewer and water facilities, sidewalks and paved streets enhance the utility and desirability of property and make them more functional to use, safer and easier to access.
5 CWPP, 84.
6 https://www.usgs.gov/centers/fort-collins-science-center/science/economics-wildland-fire 7 U.S. Forest Service. South Shore Fuel Reduction and Healthy Forest Restoration Project, Final Environmental Impact Statement, xiii.
8 CWPP, 83.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
18 Total
Benefit
=
General
Benefit +
Special
Benefit
General Benefit =
Benefit to Real
Property
Outside of
Assessment
District
+
Benefit to Real
Property
Inside of
Assessment
District That is
Indirect and
Derivative
+
Benefit to Public
At Large
General Versus Special Benefit
Article XIII C of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. The assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section.

In other words:

Equation 2 - Total Benefit Formula

There is no widely-accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA vs. SCCOSA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

The starting point for evaluating general and special benefits is the current baseline level of service. The assessment will fund Services “over and above” this general, baseline level and the special benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

Equation 3 - General Benefit Formula
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
19 Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA v. SCCOSA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In this assessment, as noted, the improved Services are available when needed to all properties in the Assessment District, so the overwhelming proportion of the benefits conferred to property is special, and are only minimally received by property outside the Assessment District or the public at large.

Proposition 218 twice uses the phrase “over and above” general benefits in describing special benefit. (Art. XIII D, sections 2(i) & 4(f).) Arguably, all of the Services being funded by the assessment would be a special benefit because the Services particularly and distinctly benefit the properties in the Assessment District over and above the baseline benefits.

Nevertheless, arguably some of the Services benefit the public at large and properties outside the Assessment District. In this report, the general benefit is conservatively estimated and described, and then budgeted so that it is funded by sources other than the assessment. (In the 2009 Dahms case, the court upheld an assessment that conferred a 100% special benefit to the assessed parcels on the rationale that the services and improvements funded by the assessments were provided directly and only to property in the assessment district over and above those services or improvements provided by the city generally. Similarly, the Assessments described in this Engineer’s Report fund wildland fire services directly and only to the assessed parcels located within the assessment area. Moreover, every property within the Assessment District will receive the Services. While the Dahms decision would permit an assessment based on 100% special benefit and zero or minimal general benefits, in this report, the general benefit is estimated and described and budgeted so that it is funded by sources other than the Assessment.) City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
20 Assumptions:
444 parcels outside the Assessment District but proximate to the District Boundaries. 2,409 parcels within the Assessment District.
50% relative benefit compared to property within the Assessment District.

Calculation:

General benefit to property outside the Assessment District =(444/(444+2409))*0.5 = 7.8%
Calculating General Benefit
This section provides a measure of the general benefits from the assessments Benefit to Property Outside the Assessment District
Properties within the Assessment District receive almost all of the special benefits from the Services because the Services will be provided solely in the Assessment District boundaries.

Properties proximate to, but outside of, the boundaries of the Assessment District receive some benefit from the Services due to some degree of indirectly reduced fire risk to their property.

These parcels that are proximate to the boundaries of the Assessment District are estimated to receive less than 50% of the benefits relative to parcels within the Assessment District because they do not directly receive the improved fire protection resulting from the Services funded by the Assessments.

Adjacent to the proposed Assessment District, there are approximately 444 of these “proximate” properties.

Figure 3 - Benefit to Property Outside the Assessment District Calculation Although it can reasonably be argued that properties protected inside, but near the Assessment District boundaries are offset by similar fire protection provided outside, but near the Assessment District’s boundaries, we use the more conservative approach of finding that 7.8% of the Services may be of general benefit to property outside the Assessment District.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
21 Benefit to Property Inside the District that is Indirect and Derivative The “indirect and derivative” benefit to property within the Assessment District is particularly difficult to calculate. A solid argument can be presented that all benefit within the Assessment District is special because the Services are clearly “over and above” and “particular and distinct” when compared with the current baseline level of Services.

In determining the Assessment District boundaries, the District has been careful to limit it to an area of parcels that will directly receive the benefit of the improved Services. All parcels will directly benefit from the use of the improved Services throughout the Assessment District in order to achieve the desired level of wildland fire suppression and protection throughout the Assessment District. Fire protection and suppression will be provided as needed throughout the area.

The SVTA vs. SCCOSA decision indicates that the fact that a benefit is conferred throughout the Assessment District area does not make the benefit general rather than special, so long as the Assessment District is narrowly drawn and limited to the parcels directly receiving shared special benefits from the service. This concept is particularly applicable in situations involving a landowner-approved assessment-funded extension of a local government service to benefit lands previously not receiving that particular service. The Fire Department therefore concludes that, other than the small general benefit to properties outside the Assessment District (discussed above) and to the public at large (discussed below), all of the benefits of the Services to the parcels within the Assessment District are special benefits and it is not possible or appropriate to separate any general benefits from the benefits conferred on parcels in the Assessment District.

Benefit To The Public At Large
With the type and scope of Services provided to the Assessment District, it is very difficult to calculate and quantify the scope of the general benefit conferred on the public at large. Because the Services directly serve and benefit all of the property in the Assessment District, any general benefit conferred on the public at large would be small. Nevertheless, there may be some indirect general benefit to the public at large.

The public at large uses the public highways and other regional facilities when traveling in and through the Assessment District and they may benefit from the services without contributing to the assessment. Although the protection of this critical infrastructure is certainly a benefit to all the property within the Assessment District, it is arguably “indirect and derivative” and possibly benefits people rather than property. A fair and appropriate measure of the general benefit to the public at large therefore is the amount of highway, and regional facilities within the Assessment District relative to the overall land area. An analysis of maps of the Assessment District shows that less than 1.0% of the land area in the Assessment District is covered by highways and regional facilities. This 1.0% therefore is a fair and appropriate measure of the general benefit to the public at large within the Assessment District City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
22 General Benefit Calculation

7.8% (Outside the Assessment District)
+ 0.0% (Inside the District - indirect and derivative)
+ 1.0% (Public at large)
= 8.8%
Summary of General Benefits
Using a sum of the measures of general benefit for the public at large and land outside the Assessment District, we find that approximately 7.7% of the benefits conferred by the Assessment District may be general in nature and should be funded by sources other than the assessment.

Figure 4 - General Benefit Calculation
The proposed Assessment District’s total budget for 2026-27 is $277,262. The Assessment District must obtain funding from sources other than the assessment in the amount of at least $24,347 ($277,262*8.8%) to pay for the cost of the general benefits. This is because the assessments levied by the Fire Department may not exceed the special benefits provided by the Services, and the Assessment Engineer concluded that a combined total of 8.8% of the cost of Services provide a general benefit to properties outside the proposed Assessment District and a benefit to the public at large.

Zones of Benefit
As noted previously, CWPP established four High Fire Hazard Area Zones within the City based on an analysis of vegetation (fuel), topography, weather, roof type, proximity of structures, road systems, water supply, fire response times, and other factors. This analysis identified and refined four High Fire Hazard Area Zones within the City. The proposed Assessment District includes the Coastal and Coastal Interior Zones.

The concept of "zones of benefit" refers to areas within an assessment district that receive variable levels of special benefit from the services provided. Because the Coastal and Coastal Interior Zones are two distinct areas as defined in the CWPP, they must be evaluated in terms of the relative benefit they receive under the proposed Assessment to determine whether zones of benefit should be established. To evaluate this relative benefit provided to the Coastal and Coastal Interior Zones, the Assessment Engineer utilized a scoring system based on characteristics described in the CWPP, which provides a recent analysis of wildland fire risk factors.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
23 Qualititative Score Numeric Score
Very High 15
High 10
Moderate 5
Low 1
Qualititative Score Numeric Score
Very High 4
High 3
Moderate 2
Low 1
Accordingly, these characteristics are used to equitably assign special benefit and form the basis of the "Fire Risk Factors." The Combined Hazard Assessment includes consideration of vegetation, topography, and weather. This score is the most significant and has been weighted accordingly, as shown in Figure 5.

Figure 5 - Combined Hazard Assessment Scoring
Other fire risk factors include Roof Type, Proximity of Structures, Road Systems, Water Supply, Fire Response, and Ignitions. These scores are assigned based on the values shown in Figure 6, below.

Figure 6 - Other Fire Hazard Factor Scoring
Each Zone has been assigned a score based upon evaluated risk criteria, as shown in Figure 7 below and followed by explanations of their scores. Note that while the Coastal and Coastal Interior Zones are distinct areas, their final scores are equal and indicate that there is no relative difference between the benefit they are provided under the proposed Assessment.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
24 Hazard/Risk Attribute Coastal Area
Coastal Interior
Area
Vegetation 8 10
Topography 8 8
Weather 10 8
Combined Hazard Assessment:

Vegetation (fuel), Topography,
Weather*
26 26
Roof Type 2 2
Proximity 2 2
Road 2 2
Water 1 1
Response 1 1
Ignitions 2 2
Total Score 36 36
Zone Raw Score Wildland Fire
Risk Factor
Coastal Zone 36 1.00
Coastal Interior Zone 36 1.00
Figure 7 - Relative Hazard/Risk Scoring for High Fire Hazard Area Zones Figure 8 shows the total relative scores for each zone tabulated and normalized.

Figure 8 - Wildland Fire Risk Factors
Combined Hazard Assessment
The Combined Hazard Assessment reflects the inherent wildfire risk associated with vegetation (fuel), topography, and weather conditions within each Zone, as identified in the CWPP. These factors influence the likelihood of ignition, fire behavior, and rate of spread.

Vegetation (Fuel)
The Coastal Zone is characterized by a mix of coastal sage scrub, grasslands, landscaped vegetation, and intermittent pockets of denser fuels. The CWPP notes that “the majority of fuels are coastal sage scrub, grassland, and ornamental plants intermixed with residential areas,” with “isolated areas of heavy fuel consisting of eucalyptus and oak vegetation” increasing hazard in specific locations.9 While these fuel types can support fire spread, the overall continuity and density of fuels are more limited compared to inland areas. 9 CWPP, 13.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
25 In contrast, the Coastal Interior Zone includes more continuous and diverse fuel types, including “dense chaparral, oak forests, coastal sage shrub, landscaped vegetation, agricultural lands, and eucalyptus groves.”10 The presence of denser and more continuous fuels increases the potential for sustained fire behavior and higher intensity fire conditions. The CWPP further notes that chaparral and coastal sage scrub “have the potential for a high rate of spread, rapid ignition, and extreme fire behavior.”11
Accordingly, the Coastal Interior Zone receives a slightly higher vegetation score (10) than the Coastal Zone (8).

Topography
Both the Coastal and Coastal Interior Zones exhibit similar topographic characteristics. The CWPP indicates that slopes in both areas “range from 10% to 35%.”12 These slope conditions can influence fire behavior by increasing the rate of fire spread and contributing to upslope fire movement.

Because topographic conditions are comparable between the two Zones, both are assigned the same score for this factor (8).

Weather
Weather conditions in both Zones are influenced by coastal marine effects as well as periodic offshore wind events. The CWPP notes that the Coastal Zone is “dominated by ocean influence for much of the year, resulting in lower temperatures and increased fuel moistures, which reduce fire hazard,” but also identifies that canyon alignments can produce “periodic hot, dry wind conditions… during late summer and fall months.”13
Similarly, the Coastal Interior Zone is “greatly affected by the ocean influence resulting in lower temperatures and increased fuel moistures,” but experiences elevated risk when “late summer and fall Sundowner winds surface.”14
While both Zones are subject to these wind-driven fire conditions, the Coastal Zone’s direct exposure to canyon-driven wind alignment and coastal interface results in slightly greater variability in fire weather conditions. Accordingly, the Coastal Zone is assigned a slightly higher weather-related hazard score (10) than the Coastal Interior Zone (8). 10 CWPP, 13.
11 CWPP, 25.
12 CWPP, 13.
13 CWPP, 13.
14 CWPP, 13.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
26 These scores combine for an equal total score of 26 across both Zones for the Combined Hazard Assessment.

Roof Type
The CWPP does not identify material differences in roof type between the Coastal and Coastal Interior Zones that would materially affect relative wildfire risk. As such, both Zones are assigned the same score for this factor (2).

Proximity of Structures
The arrangement and density of structures influence the potential for fire spread between vegetation and the built environment.

The CWPP indicates that the Coastal Zone has areas of lower building density, with “pockets of moderate to high” density development, while the Coastal Interior Zone exhibits more consistently moderate development patterns.”15
While the Coastal Interior Zone may have somewhat greater development intensity overall, the Coastal Zone includes areas of moderate to high density. Both Zones exhibit wildland-urban interface conditions where structures are located adjacent to or intermixed with vegetation. As a result, both Zones are assigned the same scores for this factor (2).

Road Systems
Roadway characteristics affect both fire response and evacuation. In the Coastal Zone, the CWPP notes that “roads in the zone are variable in width and the zone includes numerous long, deadend driveways” which can limit access and complicate evacuation16 .

In the Coastal Interior Zone, roadway conditions are also variable, including “wider, more heavily traveled roadways…and more steep and winding roadways.”17 These conditions similarly present constraints for emergency access in certain areas.

Because both Zones exhibit a mix of constrained and functional roadway conditions, they are assigned comparable scores for this factor (2).
15 CWPP, 13.
16 CWPP, 13.
17 CWPP, 13.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
27 Water Supply
The CWPP identifies water supply conditions in both Zones as generally available through the municipal system, but with limitations based on terrain and system configuration. As reflected in Table 11,18 both the Coastal and Coastal Interior Zones are characterized by relatively similar water supply conditions.

Accordingly, both Zones receive the same score for water supply (1).

Fire Response
The CWPP notes that fires in coastal areas of the City “have been relatively small due to quick response and suppression actions taken by the SBFD and Santa Barbara County Fire Department.”19 This applies to both the Coastal and Coastal Interior Zones.

Because response capabilities and historical performance are similar across both Zones, they are assigned the same score for this factor (1).

Ignitions
The likelihood of ignition is influenced by human activity near ignition sources. The CWPP describes both Zones as including intermixed residential and vegetation. Given the similar presence of ignition-prone fuels and human activity in both Zones, they are assigned equivalent scores for this factor (2).

Summary
While the Coastal and Coastal Interior Zones are identified in the CWPP as distinct geographic areas with differing physical characteristics, the evaluation of wildfire risk factors demonstrates that the overall level of hazard is comparable between the two Zones. As described above, certain factors, such as vegetation and weather, vary between the Zones; however, these differences are offset by similarities in other key factors, including topography, roadway conditions, water supply, fire response, and development patterns. When considered collectively, the resulting total scores for each Zone are equivalent, indicating that neither Zone experiences a meaningfully higher or lower overall level of wildfire risk.
18 CWPP, 78.
19 CWPP, 30.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
28 Under Proposition 218, the purpose of establishing Zones of Benefit is to reflect material differences in the level of special benefit received by properties. In this case, although the Coastal and Coastal Interior Zones are physically distinct, the analysis demonstrates that properties in both areas receive a substantially similar level of special benefit from the Services funded by the proposed Assessment. Because the Services are provided uniformly across both Zones and address comparable wildfire risk conditions, the formation of separate Zones of Benefit would not result in a more accurate or equitable allocation of assessments. Accordingly, a single Zone of Benefit is appropriate, as it reflects the proportional special benefit conferred to properties within the Assessment District and is consistent with the requirements of Article XIII D of the California Constitution.

Assessment Apportionment
In the process of determining the appropriate method of assessment, the Assessment Engineer evaluated all parcels within the proposed Assessment District. Residential improved property makes up the majority of parcels within the District – but limited vacant, commercial, industrial and other properties also receive special benefits from the proposed Assessment.

Moreover, other parcel characteristics, such as size, also affect the level of special benefit provided. For two properties used for commercial purposes, there clearly is a higher benefit provided to the larger property in comparison to a smaller commercial property because the larger property generally supports a larger building and has higher numbers of employees, customers and guests that benefit from reduced wildland fire risk. This benefit ultimately flows to the property. Larger parcels, therefore, receive an increased benefit from the assessments in some cases.

The Assessment Engineer determined that the appropriate method of assessment should be based on the type of property, the relative size of the property and the potential use of property by residents and employees. This method is further described below.

Method of Assessment
The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a "benchmark" property, a single family detached dwelling on one parcel of one acre or less (one “Single Family Equivalent Benefit Unit” or “SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefits and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. In this Engineer’s Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single family home on one parcel.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
29 Special Benefit = ∑(Fire Risk Factors) * ∑(Structure Value Factors) The relative benefit to properties from fire related Services is:

Equation 1 – Relative Benefit to Properties
That is, the benefit conferred to property is the “sum” the risk factors multiplied by the “sum” of the structure values factors.

Fire Risk Factors
Typical fire assessments (non-wildland) are evaluated based upon the fire risk of a certain property type. These evaluations consider factors such as use of structure (e.g. used for cooking), type of structure (centralized heating), etc.

Wildland fires, on the other hand, are initiated largely from external ignitions and are far less affected by structural, mechanical and electrical systems inherent to the building (except roof type). The principle Wildland fire risk factors are:
 Vegetation (fuel)
 Topography
 Weather
 Roof type
 Proximity of Structure
 Road Systems
 Water Supply
 Response
 Ignitions
These factors were fully evaluated in the CWPP and are manifested in the relative zone scores as shown in Figures 7 and 8, above. As noted previously, the Fire Risk Factor for all properties within the Coastal and Coastal Interior Zones is 1.0.

Structure Value Factors
The relative value of different property types was evaluated within the high fire hazard area to determine the Structure Value Factor according to the following formula:

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
30 Property Type Structure Value Factor Unit
Single Family11.0000 per each
Multi-Family20.3215 per res. unit
Commercial/Industrial 0.6175 per acre
Office 0.5454 per acre
Institutional30.3705 per each
Storage40.0892 per acre
Agricultural & Parks50.0803 per acre
RangeLand60.0155 per acre
Vacant 0.0446 per each
Equation 2 - Structure Value Factors
∑ (Structure Value
Factors)
≈
(Structure Weighting
Factor
∗
Average Improved
Value)
∗
(Land Weighting
Factor
∗
Average Total
Value)
∗
(Unit Density
Factor)
Where:
“Structure Weight Factor” = 10 to “weight” relative importance of structure over land. “Average Improved Value” is average of value of all improvements (e.g. structures), per property type, as provide by County Assessor records.

Land Weighting Factor = 1
“Average Total Value” is average of value of all land + improvements (e.g. structures), per property type, as provide by County Assessor records. County Assessor land values were not used directly because experience has shown total values to be more comprehensive. “Unit Density Factor” corresponds values with units (i.e. “per residential unit” or “per acre”) based upon effective density of structure on parcel.

Figure 9 below is a tabulation of the Structure values for each property type as defined by Equation 2, above.

Figure 9 - Structure Value Factors
(1) For homes on an acre or less. For homes on more than one acre, the Structure Value Factor is increased by 0.0809 per acre
(2) Multi-family properties within the proposed Assessment District are limited in number and produce inaccurate values due to the small sample size. For this reason, these values were calculated by analyzing multi-family properties throughout the City of Santa Barbara. (3) Institutional properties within the proposed Assessment District are limited in number and contain no assigned value in County Assessor records. These values were calculated by assigning

0.6 times commercial parcel values.
(4) Storage properties within the proposed Assessment District are limited in number and contain no assigned value in County Assessor records. These values were calculated by assigning 2 times vacant parcel values.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
31 (5) Agricultural properties within the proposed Assessment District are limited in number and contain no assigned value in County Assessor records. These values were calculated by assigning

1.8 times vacant parcel values.
(6) Rangland properties within the proposed Assessment District are limited in number and contain no assigned value in County Assessor records. These values were calculated by assigning 0.1 times vacant parcel values.

Residential Properties
All improved residential properties with a single residential dwelling unit on one acre or less are assigned one Single Family Equivalent or 1.0 SFE. Residential properties on parcels that are larger than 1 acre receive additional benefit and are assigned additional SFEs (0.0809) on a “per acre” basis. Detached or attached houses, zero-lot line houses and town homes are included in this category.

Properties with more than one residential unit are designated as multi-family residential properties. These properties benefit from the Services in proportion to the number of dwelling units that occupy each property. The relative benefit for multi-family properties was determined as per Equation 1 to be 0.3215 SFEs per residential unit. This rate applies to condominiums as well.

Commercial/Industrial & Office Properties
Commercial and industrial properties are assigned benefit units per acre, since there is a relationship between parcel size, structure size and relative benefits. The relative benefit for commercial and industrial properties was determined as per Equation 1 to be 0.6175 SFEs per acre. The relative benefit for office properties was determined as per Equation 1 to be 0.5454 SFEs per acre.

Vacant/Undeveloped, Parks, Open Space and Agricultural Properties The relative benefit for vacant properties was determined as per Equation 1 to be 0.0446 SFEs per parcel. Rangeland or open space parcels have minimal improvements and few, if any; structures that require defensible space and are assigned benefit “per acre.” The relative benefit for rangeland properties was determined as per Equation 1 to be 0.0155 SFEs per acre. The relative benefit for parks and agricultural properties was determined as per Equation 1 to be 0.0803 SFEs per acre.

Other Properties
Institutional properties, such as publicly owned properties and those that are used as such (for example, churches) are assessed at 0.3705 per parcel. The relative benefit for storage properties was determined as per Equation 1 to be 0.0892 SFEs per acre.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
32 Article XIII D, Section 4 of the California Constitution states that publicly owned properties shall not be exempt from assessment unless there is clear and convincing evidence that those properties receive no special benefit.

All public properties that are specially benefited are assessed. Publicly owned property that is used for purposes similar to private residential, commercial, industrial or institutional uses is benefited and assessed at the same rate as such privately owned property.

Appeals of Assessments Levied to Property
Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the Fire Chief of the City of Santa Barbara Fire Department or his or her designee. Any such appeal is limited to correction of an assessment during the then current fiscal year. Upon the filing of any such appeal, the Chief or his or her designee will promptly review the appeal and any information provided by the property owner. If the Chief or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the assessment roll. If any such changes are approved after the assessment roll has been filed with the County for collection, the Chief or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the Chief or his or her designee shall be referred to the City Council and the decision of the Council shall be final.

Additional Background on Relative Benefit
In essence, when property owners are deciding how to cast their ballot for a proposed assessment, each property owner must weigh the perceived value of the Services proposed to them and their property with the proposed cost of the assessment to their property. If property owners of a certain type of property are either opposed or in support of the assessment in much greater percentages than owners of other property types, this is an indication that, as a group, these property owners perceive that the proposed assessment has relatively higher or lower “utility” or value to their property relative to owners of other property types. One can also infer from these hypothetical ballot results that the apportionment of benefit (and assessments) was too high or too low for that property type. In other words, property owners, by their balloting, ultimately indicate if they perceive the special benefits to their property to exceed the cost of the assessment, and, as a group, whether the determined level of benefit and proposed assessment (the benefit apportionment made by the Assessment Engineer) is consistent with the level of benefits perceived by the owners of their type of property relative to the owners of other types of property.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
33 Property Type
Benefit Factors
(SFEs)
Year 1 Rate
(Dollar Amount) Unit
Single Family 1.0000 $122.95 per each
Multi-Family 0.3215 $39.53 per unit
Commercial/Industrial 0.6175 $75.92 per acre
Office 0.5454 $67.05 per acre
Institutional 0.3705 $45.55 per each
Storage 0.0892 $10.97 per acre
Agricultural 0.0803 $9.87 per acre
RangeLand 0.0155 $1.91 per acre
Vacant 0.0446 $5.49 per each
Duration of the Assessment
The duration of the assessment is one year and it may be continued each year by a vote of the City Council. The assessment cannot be increased in future years without approval from property owners in another assessment ballot proceeding, except for an annual adjustment tied to the change in the Los Angeles-Riverside-Orange County Area Consumer Price Index, not to exceed 4% per year.

Assessment Rates
The proposed rates for property types within the Assessment District are shown below in Figure 10, as informed by the structure value factors detailed above. The FY 2026-27 rate of $122.95 is applied based on the SFEs assigned to each parcel. This rate can only increase as provided by the Consumer Price Index for the Los Angeles-Riverside-Orange County Area as of December of each succeeding year, with the maximum annual adjustment not to exceed 4%.

Figure 10 - SFE and Rate Summary
The single-family home rate applies to homes on an acre or less. For homes on more than one acre, the Benefit Factor is increased by 0.0809 per acre.

Criteria and Policies
This sub-section describes the criteria that shall govern the expenditure of assessment funds and ensures equal levels of benefit for properties of similar type. The criteria established in this Report, as finally confirmed, cannot be substantially modified; however, the Council may adopt additional criteria to further clarify certain criteria or policies established in this Report or to establish additional criteria or policies that do not conflict with this Report.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
34 Assessment Funds Must Be Expended Within the Coastal and Coastal Interior Zones
The net available assessment funds, after incidental, administrative, financing and other costs, shall be expended exclusively for Services within the boundaries of the Assessment District, namely, the Coastal and Coastal Interior Zones.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
35 Roadside Vegetation Clearance Supporting Main Evacuation Routes $102,037 Defensible Space $111,663
Vegetation Management $63,562
Total for Installation, Maintenance and Servicing $277,262 Less: Contribution for General Benefits ($24,347)
Incidental Costs:

District Administration and Levy Management $6,100
Allowance for County Collection $2,500
Subtotal – Incidentals $8,600
Total Wildland Fire Suppression Assessment Budget $261,515 Budget
Assessment
WHEREAS, the City Council of the City of Santa Barbara is proceeding with the proposed levy of assessments under California Government Code sections 50078 et seq. (the “Code”) and Article XIII D of the California Constitution (the “Article”);
WHEREAS, the undersigned Engineer of Work has prepared and filed a report presenting an estimate of costs, a diagram for the Assessment District and an assessment of the estimated costs of the Services upon all assessable parcels within the Assessment District; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under said Code and Article and the order of the Council of said City, hereby make the following assessment to cover the portion of the estimated cost of said Services, and the costs and expenses incidental thereto to be paid by the Assessment District.

The amount to be paid for said Services and the expense incidental thereto, to be paid by the Assessment District for the fiscal year 2026-27 is generally as follows:

Summary Cost Estimate FY 2026-27
An Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of said Assessment District. The distinctive number of each parcel or lot of land in said Assessment District is its Assessor Parcel Number appearing on the Assessment Roll.

I do hereby assess and apportion said net amount of the cost and expenses of said Services, including the costs and expenses incident thereto, upon the parcels and lots of land within said Assessment District, in accordance with the special benefits to be received by each parcel or lot, from the Services, and more particularly set forth in the Cost Estimate and Method of Assessment hereto attached and by reference made a part hereof.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
36 The assessment is subject to an annual adjustment tied to the annual change in the Consumer Price Index for the Los Angeles-Riverside-Orange County Area as of December of each succeeding year, with the maximum annual adjustment not to exceed 4%.

In the event that the actual assessment rate for any given year is not increased by an amount equal to the maximum of 4% or the yearly CPI change plus any CPI change in previous years that was in excess of 4%, the maximum authorized assessment shall increase by this amount. In such event, the maximum authorized assessment shall be equal to the base year assessment as adjusted by the increase to the CPI, plus any and all CPI adjustments deferred in any and all prior years. The CPI change above 4% can be used in a future year when the CPI adjustment is below 4%.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the City of Santa Barbara for the fiscal year 2026-27. For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of Santa Barbara County.

I hereby place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the fiscal year 2026-27 for each parcel or lot of land within the said Assessment District.

Dated: March 26, 2026
Engineer of Work

By John W. Bliss, License No. C052091
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
37 Assessment Diagram
The Assessment District includes all properties within the boundaries of the Coastal Wildland Fire Suppression District. The boundaries of the Assessment District are displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions as shown on the maps of the Assessor of the County of Santa Barbara, for fiscal year 2026-27, and are incorporated herein by reference, and made a part of this Diagram and this Report.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
38 Figure 11 - Coastal WFSAD Assessment Diagram
City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
39 Appendices
Appendix A – Assessment Roll, FY 2026-27
The Assessment Roll is made part of this report and is available for public inspection during normal office hours. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this report. These records shall govern for all details concerning the description of the lots of parcels.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
40 Appendix B – California Government Code Section 50078 et seq. 50078. Any local agency which provides fire suppression services directly or by contract with the state or a local agency may, by ordinance or by resolution adopted after notice and hearing, determine and levy an assessment for fire suppression services pursuant to this article. The assessment may be made for the purpose of obtaining, furnishing, operating, and maintaining fire suppression equipment or apparatus or for the purpose of paying the salaries and benefits of firefighting personnel, or both, whether or not fire suppression services are actually used by or upon a parcel, improvement, or property.
50078.1. As used in this article:
(a) "Legislative body" means the board of directors, trustees, governors, or any other governing body of a local agency specified in subdivision (b).
(b) "Local agency" means any city, county, or city and county, whether general law or chartered, or special district, including a county service area created pursuant to the County Service Area Law, Chapter 2.2 (commencing with Section 25210.1) of Part 2 of Division 2 of Title 3. (c) "Fire suppression" includes firefighting and fire prevention, including, but not limited to, vegetation removal or management undertaken, in whole or in part, for the reduction of a fire hazard.
50078.2. (a) The ordinance or resolution shall establish uniform schedules and rates based upon the type of use of property and the risk classification of the structures or other improvements on, or the use of, the property. The risk classification may include, but need not be limited to, the amount of water required for fire suppression on that property, the structure size, type of construction, structure use, and other factors relating to potential fire and panic hazards and the costs of providing the fire suppression by the district to that property. The assessment shall be related to the benefits to the property assessed.
(b) The benefit assessment levies on land devoted primarily to agricultural, timber, or livestock uses, and being used for the commercial production of agricultural, timber, or livestock products, shall be related to the relative risk to the land and its products. The amount of the assessment shall recognize normal husbandry practices that serve to mitigate risk, onsite or proximate water availability, response time, capability of the fire suppression service, and any other factors which reflect the benefit to the land resulting from the fire suppression service provided. A benefit assessment shall not be levied for wildland or watershed fire suppression on land located in a state responsibility area as defined in Section 4102 of the Public Resources Code. This subdivision is not applicable to any benefit assessment levied prior to January 1, 1984, on land devoted primarily to agricultural, timber, or livestock uses.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
41 50078.3. Any ordinance or resolution adopted by a local agency pursuant to this article establishing uniform schedules and rates for assessments for fire suppression services which substantially conforms with the model ordinance which the State Fire Marshal is authorized to adopt pursuant to Section 13111 of the Health and Safety Code shall be presumed to be in compliance with the requirements of Section 50078.2.
50078.4. The legislative body of the local agency shall cause to be prepared and filed with the clerk of the local agency a written report which shall contain all of the following:
(a) A description of each lot or parcel of property proposed to be subject to the assessment. (b) The amount of the assessment for each lot or parcel for the initial fiscal year. (c) The maximum amount of the assessment which may be levied for each lot or parcel during any fiscal year.
(d) The duration of the assessment.
(e) The basis of the assessment.
(f) The schedule of the assessment.
(g) A description specifying the requirements for protest and hearing procedures for the proposed assessment pursuant to Section 50078.6.
50078.5. (a) The legislative body may establish zones or areas of benefit within the local agency and may restrict the imposition of assessments to areas lying within one or more of the zones or areas of benefit established within the local agency.
(b) The benefit assessment shall be levied on a parcel, class of improvement to property, or use of property basis, or a combination thereof, within the boundaries of the local agency, zone, or area of benefit. The assessment may be levied against any parcel, improvement, or use of property to which such services may be made available whether or not the service is actually used. 50078.6. The clerk of the local agency shall cause the notice, protest, and hearing procedures to comply with Section 53753. The mailed notice shall also contain the name and telephone number of the person designated by the legislative body to answer inquiries regarding the protest proceedings.
50078.13. The local agency shall pay the county for costs, if any, incurred by the county in conducting the election. An election called by a legislative body pursuant to this article is subject to all provisions of the Elections Code applicable to elections called by the local agency. The local agency may recover the costs of the election and any other costs of preparing and levying the assessment from the proceeds of the assessment.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
42 50078.16. The legislative body may provide for the collection of the assessment in the same manner, and subject to the same penalties as other fees, charges, and taxes fixed and collected by, or on behalf of the local agency. If the assessments are collected by the county, the county may deduct its reasonable costs incurred for that service before remittal of the balance to the local agency's treasury.
50078.17. Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure applies to any judicial action or proceeding to validate, attack, review, set aside, void, or annul an ordinance or resolution levying an assessment or modifying or amending an existing ordinance or resolution. If an ordinance or resolution provides for an automatic adjustment in an assessment, and the automatic adjustment results in an increase in the amount of an assessment, any action or proceeding to attack, review, set aside, void, or annul the increase shall be commenced within 90 days of the effective date of the increase. Any appeal from a final judgment in the action or proceeding brought pursuant to this section shall be filed within 30 days after entry of the judgment.
50078.19. This article does not limit or prohibit the levy or collection of any other fee, charge, assessment, or tax for fire suppression services authorized by any other provisions of law. 50078.20. Any fire protection district may specifically allocate a portion of the revenue generated pursuant to this article to pay the interest and that portion of the principal as will become due on an annual basis on indebtedness incurred pursuant to Section 8589.13 of this code and Section 13906 of the Health and Safety Code.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
43 Appendix C – Article XIII D of the California Constitution Proposition 218 was approved by voters as a Constitutional Amendment on November 6, 1996. It became Article XIII C and Article XIII D of the California State Constitution and has imposed additional requirements for assessment districts. Following is a summary of the Article.

SEC.1. Application. Notwithstanding any other provision of law, the provisions of this article shall apply to all assessments, fees and charges, whether imposed pursuant to state statute or local government charter authority. Nothing in this article or Article XIII C shall be construed to:
(a) Provide any new authority to any agency to impose a tax, assessment, fee, or charge. (b) Affect existing laws relating to the imposition of fees or charges as a condition of property development.
(c) Affect existing laws relating to the imposition of timber yield taxes.

SEC. 2. Definitions. As used in this article:
(a) "Agency" means any local government as defined in subdivision (b) of Section 1 of Article XIII C.
(b) "Assessment" means any levy or charge upon real property by an agency for a special benefit conferred upon the real property. "Assessment" includes, but is not limited to, "special assessment," "benefit assessment," "maintenance assessment" and "special assessment tax." (c) "Capital cost" means the cost of acquisition, installation, construction, reconstruction, or replacement of a permanent public improvement by an agency. (d) "District" means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service. (e) "Fee" or "charge" means any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service. (f) "Maintenance and operation expenses" means the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care, and supervision necessary to properly operate and maintain a permanent public improvement.
(g) "Property ownership" shall be deemed to include tenancies of real property where tenants are directly liable to pay the assessment, fee, or charge in question. (h) "Property-related service" means a public service having a direct relationship to property ownership.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
44 (i) "Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit." SEC. 3. Property Taxes, Assessments, Fees and Charges Limited. (a) No tax, assessment, fee, or charge shall be assessed by any agency upon any parcel of property or upon any person as an incident of property ownership except: (1) The ad valorem property tax imposed pursuant to Article XIII and Article XIII A. (2) Any special tax receiving a two-thirds vote pursuant to Section 4 of Article XIII A. (3) Assessments as provided by this article. (4) Fees or charges for property related services as provided by this article. (b) For purposes of this article, fees for the provision of electrical or gas service shall not be deemed charges or fees imposed as an incident of property ownership.

SEC. 4. Procedures and Requirements for All Assessments. (a) An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and an agency shall separate the general benefits from the special benefits conferred on a parcel. Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. (b) All assessments shall be supported by a detailed engineer's report prepared by a registered professional engineer certified by the State of California. (c) The amount of the proposed assessment for each identified parcel shall be calculated and the record owner of each parcel shall be given written notice by mail of the proposed assessment, the total amount thereof chargeable to the entire district, the amount chargeable to the owner's particular parcel, the duration of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated, together with the date, time, and location of a public hearing on the proposed assessment. Each notice shall also include, in a conspicuous place thereon, a summary of the procedures applicable to the completion, return, and tabulation of the ballots required pursuant to subdivision (d), including a disclosure statement that the existence of a majority protest, as defined in subdivision (e), will result in the assessment not being imposed.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
45 (d) Each notice mailed to owners of identified parcels within the district pursuant to subdivision (c) shall contain a ballot which includes the agency's address for receipt of the ballot once completed by any owner receiving the notice whereby the owner may indicate his or her name, reasonable identification of the parcel, and his or her support or opposition to the proposed assessment.
(e) The agency shall conduct a public hearing upon the proposed assessment not less than 45 days after mailing the notice of the proposed assessment to record owners of each identified parcel.

At the public hearing, the agency shall consider all protests against the proposed assessment and tabulate the ballots. The agency shall not impose an assessment if there is a majority protest. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.
(f) In any legal action contesting the validity of any assessment, the burden shall be on the agency to demonstrate that the property or properties in question receive a special benefit over and above the benefits conferred on the public at large and that the amount of any contested assessment is proportional to, and no greater than, the benefits conferred on the property or properties in question.
(g) Because only special benefits are assessable, electors residing within the district who do not own property within the district shall not be deemed under this Constitution to have been deprived of the right to vote for any assessment. If a court determines that the Constitution of the United States or other federal law requires otherwise, the assessment shall not be imposed unless approved by a two-thirds vote of the electorate in the district in addition to being approved by the property owners as required by subdivision (e).

SEC. 5. Effective Date.

Pursuant to subdivision (a) of Section 10 of Article II, the provisions of this article shall become effective the day after the election unless otherwise provided. Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article. Notwithstanding the foregoing, the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set forth in Section 4:
(a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control.

Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4.

City of Santa Barbara
Coastal Wildland Fire Suppression Assessment
Engineer’s Report, FY 2026-27
46 (b) Any assessment imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment is initially imposed. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section

4. (c) Any assessment the proceeds of which are exclusively used to repay bonded indebtedness of which the failure to pay would violate the Contract Impairment Clause of the Constitution of the United States.
(d) Any assessment which previously received majority voter approval from the voters voting in an election on the issue of the assessment. Subsequent increases in those assessments shall be subject to the procedures and approval process set forth in Section 4.

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA ESTABLISHING THE COASTAL

WILDLIFE SUPPRESSION ASSESSMENT DISTRICT AND

LEVY ASSESSMENTS THEREIN, PROVIDED THAT, UPON

TABULATION OF THE ASSESSMENT BALLOTS

WEIGHTED ACCORDING TO THE PROPORTIONAL

FINANCIAL OBLIGATION OF EACH AFFECTED PARCEL,

A MAJORITY PROTEST AS DEFINED BY ARTICLE XIII D

OF THE CALIFORNIA CONSTITUTION DOES NOT EXIST
WHEREAS, the City Council (“Council”) of the City of Santa Barbara (“City”) initiated proceedings for the formation of an assessment pursuant to the provisions of California Government Code Section 50078 et seq., Section 53750 et seq., and Article XIII D of the California Constitution, to be known as the Coastal Wildfire Suppression Assessment (“Assessment”) for the purpose of financing the cost of wildfire suppression services within the Coastal Wildfire Suppression Assessment District (“Assessment District”) as specified in the Engineer’s Report prepared by the Assessment Engineer, SCI Consulting Group; and
WHEREAS, the Council has adopted a resolution preliminarily approving and filing an Engineer’s Report which includes: (1) a description of the wildfire suppression services (“Services”) to be funded with assessment proceeds; (2) an estimate of the annual cost of the Services described in the Engineer’s Report; (3) a description of the assessable parcels of land within the Assessment District and proposed to be subject to the new assessment; (4) a description of the proportionate special and general benefits conferred on property by the proposed assessment; (5) a diagram and boundary map for the Assessment District; and (6) a specification of the amount to be assessed upon various types of assessable land to fund the cost of the Services. The Engineer’s Report is incorporated herein by this reference; and
WHEREAS, the Council adopted Resolution No. 2026-030 on April 21, 2026, a “Resolution of the Council of the City of Santa Barbara Declaring Intention to Initiate Assessment Proceedings, Preliminarily Approve the Engineer’s Report, and Set a Public Hearing For June 30, 2026.” The annual assessment rates for various types of real property within the proposed Assessment District, the total number of parcels to be assessed, and the total amount of annual assessment revenue are contained within the Engineer’s Report; and
WHEREAS, the Council adopted Resolution No. 2026-031 on April 21, 2026, a “Resolution of the Council of the City of Santa Barbara Establishing Proposition 218 Assessment Balloting Procedures in Accordance with Article XIII D of the California Constitution”; and
WHEREAS, the City has provided a 45-day written mailed notice to each record owner of assessable parcels of real property located within the Assessment District boundaries, as set forth on the Assessment Diagram and Boundary Map, of a public hearing which was held at a regular meeting of the Council on Tuesday, June 30, 2026, at 2:00 p.m. at Santa Barbara City Hall, 735 Anacapa Street, Santa Barbara, CA 93101, on the issue of whether the Coastal Wildfire Suppression Assessment should be formed and assessments levied and collected as proposed in the Engineer’s Report for fiscal year 2026-27 and subsequent years; and
WHEREAS, the form of written mailed public notice of the public hearing contained the following information: (a) the total amount of assessments proposed to be levied within the Assessment District for fiscal year 2026-27; (b) the assessment chargeable to each owner’s parcel; (c) the duration of the proposed assessment; (d) the reason for the assessment; (e) the basis upon which the amount of the proposed assessment was calculated; (f) the date, time, and place of the public hearing as specified in this resolution; and (g) a summary of the voting procedures and the effect of a majority protest. The form of the written mailed public notice also included an assessment ballot by which each property owner could express their support for or opposition to the proposed assessment.

The ballot indicated that it must be returned before the close of the public input portion of the public hearing on Tuesday, June 30, 2026, in order to be valid and counted, and that all assessment ballots received would be tabulated after the close of the public input portion of the public hearing on Tuesday, June 30, 2026 by the Assessment Engineer (“Tabulator”); and
WHEREAS, pursuant to the provisions of California Constitution Article XIII D, an opportunity for protest has been afforded, and the assessment ballots mailed to owners of assessable real property within the proposed boundaries of the Assessment District have been received and tabulated, with assessment ballots weighted according to the proportional financial obligation of each affected parcel; and WHEREAS, any written objections received were noted and considered by the Council along with the other information received during the public hearing, and, in accordance with Government Code sections 53759.1 and 53759.2 and the City’s adopted assessment balloting procedures, the City considered and provided a substantive written response to each timely written objection received prior to the close of the public hearing.

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

1. The above recitals are true and correct.

2. The canvass of the assessment ballots submitted by property owners is complete and certified by the Tabulator, and the votes cast are as follows:

Total Number of Valid Ballots Processed:

Total Assessment Amount of Valid Ballots: $
Total Number of “Yes” Votes Processed:

Total Assessment Amount of “Yes” Votes Processed: $
Percentage of “Yes” Votes, unweighted: %
Total Percentage of “Yes” Ballots, Weighted by Assessment:
%
Total Number of “No” Votes Processed:

Total Assessment Amount of “No” Votes Processed: $
Percentage of “No” Votes, unweighted: %
Total Percentage of “No” Ballots, Weighted by Assessment:
%
Total Number of “Invalid” Ballots Processed:

Total Assessment Amount of “Invalid” Ballots Processed: $

3. _________ assessment ballots were returned and received prior to the close of the public hearing held on June 30, 2026. This represents a _________ ballot return rate on the [NUMBER] ballots mailed. Of the assessment ballots returned, _________ assessment ballots were declared invalid, in that they were either not marked with a “Yes” or “No”, were marked with both a “Yes” and a “No”, were not signed, or the property ownership and barcode information was illegible.

4. As determined by ballots cast, as weighted according to the amount of assessment for each parcel, ________% of the property owners cast ballots in support of the Coastal Wildfire Suppression Assessment. Since a majority protest, as defined by Article XIII D of the California Constitution, did not exist, the Council thereby acquired jurisdiction to order the levy of assessments prepared by and made a part of the Engineer’s Report to pay the costs and expenses thereof.

5. The Council hereby finds and determines that the public interest, convenience and necessity require the Services and the levy of the assessments.

6. The Final Engineer’s Report for the Coastal Wildfire Suppression Assessment, together with the diagram and boundary map of the Assessment District contained therein, and the proposed assessment roll for fiscal year 2026-27, are hereby confirmed and approved.

7. Based on the oral and documentary evidence, including the Engineer’s Report, offered and received at the public hearing, the Council expressly finds and determines that: (a) each of the several assessed lots and parcels of land within the Assessment District will be specially benefited by the Services (as described in the Engineer’s Report) in at least the amount of the assessment apportioned against such lots and parcels of land, respectively; and (b) there is substantial evidence to support, and the weight of the evidence preponderates in favor of, said finding and determination as to special benefit to property within the Assessment District from the Services to be financed with assessment proceeds.

8. The Coastal Wildfire Suppression Assessment is hereby formed, and assessments consistent with the Engineer’s Report are hereby levied, pursuant to Title 5, Division 1, Part 1, Chapter 1, Article 3.6 of the California Government Code, “Fire Suppression Assessments”, beginning with Section 50078.

9. Assessments for fiscal year 2026-27 shall be levied at the rate of ONE HUNDRED TWENTY-TWO DOLLARS AND NINETY-FIVE CENTS ($122.95) per singlefamily equivalent benefit unit as specified in the Engineer’s Report for fiscal year 2026-27, with estimated total annual assessment revenues as set forth in the Engineer’s Report.

10.The wildfire suppression services to be financed with assessment proceeds described in the Engineer’s Report are hereby ordered.

11.The assessments shall be levied annually.

12.The authorized maximum assessment rate is subject to an annual adjustment tied to the annual change in the Consumer Price Index (“CPI”) for All Urban Consumers for the Los Angeles-Riverside-Orange County Area as of December of each succeeding year, with the maximum annual adjustment not to exceed four percent (4%), without a further vote or balloting process. In the event that the actual assessment rate for any given year is not increased by an amount equal to the maximum of 4% or the yearly CPI change plus any CPI change in previous years that was in excess of 4%, the maximum authorized assessment shall increase by this amount; in such event, the maximum authorized assessment shall be equal to the base year assessment as adjusted by the increase to the CPI, plus any and all CPI adjustments deferred in any and all prior years, as set forth in the Engineer’s Report. In each subsequent year in which the assessments will be levied, an updated proposed budget and assessment rate shall be prepared and considered by the Council at a noticed public hearing. The updated budget and assessment rate shall serve as the basis for the continuation of the assessments.

13.Immediately upon the adoption of this resolution, but in no event later than August 10 following such adoption, the City Clerk shall file a certified copy of the Diagram and Assessment and a certified copy of this resolution with the Santa Barbara County Auditor-Controller (“County Auditor”). Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the Assessment. The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City.

14.The monies representing assessments collected shall be deposited in a separate fund established under the distinctive designation of the Coastal Wildfire Suppression Assessment. Funds collected from the Coastal Wildfire Suppression Assessment shall be expended only for the special benefit of parcels within the Assessment District.

15.The Coastal Wildfire Suppression Assessment, as it applies to any parcel, may be corrected, canceled, or a refund granted, as appropriate, by order of the Council upon a determination from the Assessment Engineer that the assessment should be revised to be consistent with the method of assessment established in the Engineer’s Report. Any such corrections, cancellations, or refunds shall be limited to the current fiscal year.

16.The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED AND ADOPTED by the Santa Barbara City Council, this 30th day of June 2026 by the following vote:

AYES ____
NAYES ____
ABSENT ____
ABSTAIN ____
_____________________________________
City Clerk, City of Santa Barbara
ATTEST:
_____________________________________
Mayor, City of Santa Barbara

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: June 30, 2026
To: Mayor and Councilmembers
From: Finance Department
Subject: Operating and Capital Budget for Fiscal Year 2027 [Ordinance Adoption; Resolution]
Recommendation:

That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Adopting the Budget for the Fiscal Year 2027 by Appropriating Moneys for the Use and Support of Said City from the Funds and to the Purposes Herein Specified; B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Establishing the City’s Appropriation Limitation for Fiscal Year 2027; C. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the City of Santa Barbara Schedule of Penalties, Fees, and Service Charges; D. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the City of Santa Barbara Waterfront Harbor Slip, Mooring, and User Fees; E. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the City of Santa Barbara Abandoned Shopping Cart Recovery Fee; F. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending the City of Santa Barbara Solid Waste In-Place Additional Charge Per Cart Fee; G. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing Classified and Unclassified Positions in the City’s Service Effective June 27, 2026, and Providing a Schedule of Classifications and Salaries for the Same in Accordance with the Operating Budget for Fiscal Year 2027;
H. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Continuation of Capital and Special Project Appropriations to Fiscal Year 2027;
Agenda Item No. 24
Council Agenda Report
Operating and Capital Budget for Fiscal Year 2027 [Ordinance Adoption; Resolution]

Page 2 ends

Santa Barbara City CouncilJune 30, 2026

Santa Barbara City Council
June 30, 2026