Santa Barbara City Council
August 4, 2026

CITY OF SANTA BARBARA

CITY COUNCIL
Randy Rowse
Mayor
Kristen W. Sneddon
Mayor Pro Tempore
Kelly McAdoo
City Administrator
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
AUGUST 4, 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. 08/04/2026 Santa Barbara City Council Final Agenda Page 1 AUGUST 4, 2026 AGENDA
REGULAR CITY COUNCIL MEETING - 2:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CEREMONIAL ITEMS

1. Subject: Old Spanish Days Week

2. Subject: Employee Recognition – Service Award Pins
Recommendation: That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through August 31, 2026.

CHANGES TO THE AGENDA

CONSENT CALENDAR

3. 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.

4. Subject: Adoption of an Ordinance Approving a Lease Agreement with La Patera Investors, L.P. [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 Airport Director to Execute a Lease Agreement with La Patera Investors, L.P., for 41,760 Square Feet of Paved Land, at the Santa Barbara Airport.
08/04/2026 Santa Barbara City Council Final Agenda Page 2

5. Subject: Adoption of an Ordinance Approving Second Amendment to Agreement No. 18538 with Signature Flight Support LLC [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 Airport Director to Execute a Second Amendment to Agreement No. 18538 with Signature Flight Support LLC, Commencing Upon the Effective Date of the Enabling Ordinance.

6. Subject: Acceptance of $10,000 from Matawan LLC [Resolution] Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 2026-057, Adopting the Budget for Fiscal Year 2027, to Increase Revenue and Expenditure Appropriations by $10,000 in the Fiscal Year 2027 Waterfront Department Harbor Patrol Equipment Budget for a Donation Received from Matawan, LLC.

7. Subject: Grant Agreement with the California State Coastal Conservancy for Lower Sycamore Creek Flood Mitigation and Restoration Planning Project [Resolution; Agreement]
Recommendation: That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Accepting Grant Funds from the California State Coastal Conservancy in the amount of $2,015,000, Authorizing the Sustainability and Resilience Director, or Designee, to Execute a Grant Agreement for the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project and Amending Resolution No. 2026-057 to Approve an Increase in Revenue and Expenditure Appropriations in the Sustainability and Resilience Department Creeks Fund in the amount of $2,015,000.

8. Subject: Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution]
Recommendation: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Downtown Community Benefit Improvement District Special Assessment on the 2026-2027 Parcel Tax Roll; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Coast Village Community Benefit Improvement District Special Assessment on the 2026-2027 Parcel Tax Roll. 08/04/2026 Santa Barbara City Council Final Agenda Page 3

9. Subject: Fiscal Year 2026 Interim Financial Statements for the Eleven Months Ended May 31, 2026
Recommendation: That Council accept the Fiscal Year 2026 Interim Financial Statements for the eleven months ended May 31, 2026.

10. Subject: Skofield Park Resident Caretaker [Agreement] Recommendation: That Council authorize the Parks and Recreation Director to execute a Caretaker Rental Agreement for Skofield Park with Todd Newell, commencing September 1, 2026, through August 31, 2027.

11. Subject: Settlement Agreement for the Charles E. Meyer Desalination Plant and Supporting Validation Test and Raw Water Quality Study Agreements [Agreement]
Recommendation: That Council:

A. Authorize the Water Resources Director and City Attorney to execute a Settlement Agreement with IDE Americas for the Charles E. Meyer Desalination Plant;
B. Authorize the Water Resources Director to execute an agreement with Trussell Technologies for evaluating Plant performance during a Validation Test in a not-to-exceed amount of $250,000; and
C. Authorize the Water Resources Director to execute an agreement for completing a Source Water Quality Study in a not-to-exceed amount of $700,000.

12. Subject: Proposed Lease Agreement with Santa Barbara Maritime Museum, Inc. [Agreement]
Recommendation: That Council approve a five-year lease agreement with Santa Barbara Maritime Museum, Inc., for the approximately 156 square feet of ground floor office space, designated as 113 Harbor Way, Suite 105. 08/04/2026 Santa Barbara City Council Final Agenda Page 4

13. Subject: Amendment to the Reciprocal Easement Agreement for 16 and 20 West Canon Perdido Street [Agreement]
Recommendation: That Council authorize the City Administrator to execute, subject to approval as to form by the City Attorney, an Amendment to the Reciprocal Easement Agreement for Parcels 4 and 5 of Redevelopment Parcel Map 20,511 between the City of Santa Barbara and 1620 WCP Partners, LLC, to replace the existing use restrictions on the property at 16 and 20 West Canon Perdido Street to authorize use of the property in accordance with the City’s General Plan and Zoning Ordinance.

14. Subject: Third Amendment to the Memorandum of Understanding with the Santa Barbara County Association of Governments for the Milpas Street at U.S. Highway 101 Operational Improvements Project [Agreement] Recommendation: That Council authorize the City Administrator to execute the Third Amendment to the Memorandum of Understanding, Agreement 26,901, between the City of Santa Barbara and the Santa Barbara County Association of Governments, to extend the term end date to January 31, 2027, for Construction Phase closeout and the budget reallocation of $70,685 from the Construction Support Phase to the Construction Capital Phase for the Milpas Street at U.S.

Highway 101 Operational Improvements Project.

15. Subject: First Amendment for Water Resources Legal Services with Bartkiewicz, Kronick & Shanahan [Agreement]
Recommendation: That Council authorize the Water Resources Director and City Attorney to execute the First Amendment to the Professional Services Agreement with Bartkiewicz, Kronick & Shanahan, increasing the contract expenditure authority by $300,000, for a not to exceed amount of $550,000 for specialized asneeded legal services.

16. Subject: Fourth Amendment to Professional Services Agreement for the Evaluation of Proposed Development at Paseo Nuevo [Agreement] Recommendation: That Council authorize the City Administrator to execute a fourth amendment to increase the amount of Santa Barbara City Agreement No. 22300248 with Strategic Economics, Inc., by $21,600, for a total contract amount of $410,741, for consulting services related to the Paseo Nuevo Redevelopment Project, including preparation of briefing materials, a community benefits analysis, and final project meetings and contract closeout, as described in the revised scope of services attached to the Fourth Amendment.

GENERAL PUBLIC COMMENT

PULLED CONSENT ITEMS
08/04/2026 Santa Barbara City Council Final Agenda Page 5

COUNCIL AND STAFF COMMUNICATIONS

COUNCILMEMBER COMMITTEE ASSIGNMENT REPORTS & ENGAGEMENTS

PUBLIC COMMENT (IF NECESSARY)

ADJOURNMENT
Agenda Item No. 1

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: August 4, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Employee Recognition – Service Award Pins
Recommendation:

That Council authorize the City Administrator to express the City’s appreciation to employees who are eligible to receive service award pins for their years of service through August 31, 2026.

Discussion
The City appreciates the loyalty to the community and the dedication to public service that are demonstrated by City employees throughout the organization every day. Since 1980, the City Employees’ Recognition Program has recognized length of City Service. Service award pins are presented to employees for every five years of service. Those employees achieving 25 years of service or more are eligible to receive their pins in front of the City Council.

Attached is a list of those employees who will be awarded pins for their service through August 31, 2026.

Attachment:

1. August 2026 Service Awards
Prepared and
Submitted by: Nicole Grisanti, City Administrator’s Office Manager Approved by: Kelly McAdoo, City Administrator
Agenda Item No. 2

ATTACHMENT
AUGUST 2026 SERVICE AWARDS
August 04, 2026 Council Meeting
5 Years
Raymond Rengo, Rental Housing Mediation Specialist, City Administrators’ Office Therese Harris, State Street Master Planner, City Administrator’s Office Caressa Salazar, Finance Analyst I, Finance Department
Brian Federmann, Fire Operations Division Chief, Fire Department Madison Hank, Police Officer, Police Department
Michelle Royals, Police Officer, Police Department
Jesse Wheeler, Supervising Engineer, Public Works Department Mark Burdick, Airport Police Officer, Airport Department 10 YEARS
Carlos Razo, Custodial Supervisor, Public Works Department Andrew Benson, Water Distribution Supervisor, Department of Water Resources Blake Jaeger, Airport Operations Specialist, Airport Department 15 YEARS
Derrick Bailey, Principal Traffic Engineer, Public Works Department 20 YEARS
Julie Thomas, Recreation Coordinator, Parks & Recreation Department 25 YEARS
Christopher Short, Senior Plan Check Engineer, Community Development Department 30 YEARS
Margaret Douville, Applications Administrator, Information Technology Department Andrew Hill, Police Sergeant, Police Department
1 Ordinance No. _______

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA BARBARA

APPROVING AND AUTHORIZING THE AIRPORT DIRECTOR TO
EXECUTE A LEASE AGREEMENT WITH LA PATERA INVESTORS, L.P., FOR 41,760 SQUARE FEET OF PAVED LAND, AT THE SANTA

BARBARA AIRPORT
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 30089 with La Patera Investors, L.P., for 41,760 square feet of paved land at the Santa Barbara Airport, is hereby approved.

Agenda Item No. 4
1 Ordinance No. ________

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA BARBARA

APPROVING AND AUTHORIZING THE AIRPORT DIRECTOR TO
EXECUTE A SECOND AMENDMENT TO AGREEMENT NO. 18538

WITH SIGNATURE FLIGHT SUPPORT LLC, 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 Section 521 of the Charter of the City of Santa Barbara, the Second Amendment to Lease Agreement No. 18,538, by and between the City of Santa Barbara and Signature Flight Support LLC, a Delaware limited liability company, for operation of a fuel storage facility and self-service fueling facility at Santa Barbara Airport, is hereby approved.

Agenda Item No. 5

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: August 4, 2026
To: Mayor and Councilmembers
From: Waterfront Department
Subject: Acceptance of $10,000 from Matawan LLC [Resolution] Recommendation:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 2026-057, Adopting the Budget for Fiscal Year 2027, to Increase Revenue and Expenditure Appropriations by $10,000 in the Fiscal Year 2027 Waterfront Department Harbor Patrol Equipment Budget for a Donation Received from Matawan, LLC.

Discussion
Government Code Section 37354 authorizes the City Council to accept any gift, bequest, or devise made to or for the City, or for any public purpose, and to hold and administer such property in accordance with the donor's terms. If the terms of the gift do not prescribe or limit its use, Government Code Section 37355 authorizes the City Council to direct the use of the gift for any lawful municipal purpose.

The Waterfront Department has been designated as the recipient of a $10,000 donation from Matawan, LLC, with the donor directing that the funds be used exclusively for the benefit of the Waterfront Department and Harbor Patrol. Acceptance of this donation will allow the City to use the funds consistent with the donor's intent to enhance Harbor Patrol equipment and public safety capabilities.

For first responders, it is critical to have access to the highest level of rescue gear. For Harbor Patrol Officers working in the harsh marine environment, it is especially important to maintain all equipment in excellent working condition and replace gear that reaches the end of its serviceable life. Salt air, UV damage, and moisture all age Harbor Patrol equipment faster than in a normal environment. This generous donation from Matawan, LLC will help the Waterfront Department expand its equipment budgetary capacity for essential items such as Automatic External Defibrillators (AEDs), ocean rescue gear, Self-Contained Breathing Apparatus (SCBAs), and firefighting turnouts.

Agenda Item No. 6
Council Agenda Report
Acceptance of $10,000 from Matawan LLC [Resolution]

Budget/Financial Information
Revenues and appropriations in the Fiscal Year 2027 Waterfront Department Harbor Patrol Equipment budget will be increased by $10,000.

Prepared by: Nathan Alldredge, Harbor Operations Manager Submitted by: Mike Wiltshire, Waterfront Director
Approved by: Kelly McAdoo, City Administrator
1 Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA
BARBARA AMENDING RESOLUTON NO. 2026-057, ADOPTING THE
BUDGET FOR FISCAL YEAR 2027, TO INCREASE REVENUE AND
EXPENDITURE APPROPRIATIONS BY $10,000 IN THE FISCAL YEAR 2027 WATERFRONT DEPARTMENT HARBOR PATROL EQUIPMENT
BUDGET FOR A DONATION RECEIVED FROM MATAWAN, LLC.

WHEREAS, Government Code § 37354 permits the City Council of a City to accept or reject any gift, bequest or devise made to or for the City, or to or for any of its officers in their official capacity or in trust for any public purpose, and further empowers a City Council to hold and dispose of such property and the income and increase from the same for such uses as are prescribed in the terms of the gift, bequest, or devise; and WHEREAS, If the terms of a gift, bequest, or devise do not prescribe or limit the uses to which the property received or the income or increase from it may be put, Government Code § 37355 permits a City Council to put such gift, bequest or devise, or the income or increase from its use to such uses as a City Council may prescribe; and, WHEREAS, the Waterfront Department has been designated a recipient of a gift from Matawan LLC of $10,000, which the distribution to the Waterfront Department and Harbor Patrol is directed for the exclusive use and benefit; and WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2027.

WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2027.

WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplant the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council.

WHEREAS, as authorized by Resolution No. 2026-057, 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:
2 1. The City Council does hereby accept the gift from the Matawan LLC in the sum of $10,000 to be directed for the exclusive use and benefit of the Waterfront Department and Harbor Patrol.

2. The Council approves of the increase in revenue and expenditure appropriation of $10,000 in the Fiscal Year 2027 Waterfront Department Harbor Patrol Equipment budget.

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: August 4, 2026
To: Mayor and Councilmembers
From: Sustainability & Resilience Department
Subject: Grant Agreement with the California State Coastal Conservancy for Lower Sycamore Creek Flood Mitigation and Restoration Planning Project [Resolution; Agreement]
Recommendation:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Accepting Grant Funds from the California State Coastal Conservancy in the amount of $2,015,000, Authorizing the Sustainability and Resilience Director, or Designee, to Execute a Grant Agreement for the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project and Amending Resolution No. 2026-057 to Approve an Increase in Revenue and Expenditure Appropriations in the Sustainability and Resilience Department Creeks Fund in the amount of $2,015,000.

Discussion
The State Coastal Conservancy has authorized a grant in the amount of $2,015,000 to the City of Santa Barbara to undertake the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project. The project will consist of: completing technical studies; conducting public outreach; evaluating design alternatives; and preparing 30% overall project design, 60% channel restoration design, environmental compliance documents, and permit applications for the restoration of lower Sycamore Creek, from Highway 101 to the Ocean. The Project will develop plans to widen and restore this lower reach of Sycamore Creek to increase flood conveyance capacities, reduce upstream flooding, expand and restore creek side habitat, and increase local resilience to climate impacts.

The project site and area immediately upstream have been subject to a significant number of damaging floods. The current channel capacities are constrained to less than a 10-year storm event. Recent modeling conducted for the City shows that rainfall rates are increasing in intensity due to rising atmospheric temperatures. It is projected that what was once the 100- Agenda Item No. 7
Council Agenda Report
Grant Agreement with the California State Coastal Conservancy for Lower Sycamore Creek Flood Mitigation and Restoration Planning Project [Resolution; Agreement]

year rainfall event, such as that seen in February 1998, will be seven times more likely to occur after 2030 and the 10-year rainfall event, such as was seen in January 2023, will be twice as likely to occur. Additionally, sea-level rise will exacerbate flood risks along lower Sycamore Creek due to tidal influence in the lower third of the project reach. Widening and restoring habitat in lower Sycamore Creek channel will result in numerous benefits including: reduction in flood frequency, extents, and severity, including in a severely disadvantaged community; increased resilience to the impacts of sea-level rise and increased flooding from changes in rainfall patterns as a result of climate change; reduced need for habitat destroying bank hardening to protect existing development; improved habitat for endangered tidewater goby and southern steelhead, as well as other estuarine, riverine, and riparian species; and improved creek corridor aesthetics and public enjoyment in this highly visible location.

The project will undertake detailed modeling and design to inform evaluation of project alternatives. To facilitate channel widening and flood risk reduction, four existing bridges will be redesigned, including the railroad bridge owned and managed by Union Pacific Railroad (UPRR), the Zoo bridge, and the two El Escorial entrance bridges. The City will undertake the necessary technical studies including: modeling of hydrologic, hydraulic, fluvial/sediment transport; flood modeling including sea-level rise and increased rainfall intensities; and studies of biological and cultural resources, geotechnical conditions, and traffic and parking.

Budget/Financial Information
Total costs for this planning and design project are estimated to be $2,715,000.

Staff recommend accepting this grant to provide $2,015,000 towards the cost of the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project. By accepting this grant, Sustainability & Resilience will increase revenue appropriations and expenditure appropriation of $2,015,000 in the Fiscal Year 2027 Sustainability & Resilience Department Miscellaneous Grants Fund budget.

There are sufficient expenditure appropriations in the adopted Sustainability & Resilience Creeks Capital Fund budget in Fiscal Year 2027 to fund the matching grant funds of $700,000.

Staff has reviewed Government Code Section 3504.1 and determined that the noticing provisions do not apply to this agreement.

Council Agenda Report
Grant Agreement with the California State Coastal Conservancy for Lower Sycamore Creek Flood Mitigation and Restoration Planning Project [Resolution; Agreement]

Sustainability Impact
The project will advance planning and adaptation efforts that will:
a) Provide co-benefits and alleviate multiple stressors within communities, such as improving flood protection, riparian habitat enhancements, water quality improvements, and other environmental benefits;
b) Increase equity and environmental justice by benefitting underserved, low-income, and/or frontline communities on the City’s Lower Eastside; and c) Increase community-preparedness and resilience to future climate change impacts such as sea-level rise, storm surge high tide events, and flooding.

Environmental Review
Feasibility and planning studies are statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262. Any projects that are implemented as a result of the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project; will be reviewed for compliance with the California Environmental Quality Act.

Attachment:

1. Coastal Conservancy Grant Agreement for Lower Sycamore Creek Project Prepared by: Erin Markey, Creeks Division Manager
Submitted by: Alelia Parenteau, Sustainability & Resilience Director Approved by: Kelly McAdoo, City Administrator

STATE OF CALIFORNIA
State Coastal Conservancy

GRANT AGREEMENT
Grant - Rev 11/20
THIS AGREEMENT is entered into this day of , 2026 in the State of California, by and between:
and
.

Pursuant to Chapter 3 of Division 21 of the California Public Resources Code, the State Coastal Conservancy (“the Conservancy”) hereby grants to City of Santa Barbara (“the grantee”) a sum not to exceed $2,015,000.00 (two million fifteen thousand dollars) subject to this agreement.

Continued on the following pages.

The provisions on the following pages constitute a part of this agreement.

This agreement has been executed by the parties as shown below.

STATE OF CALIFORNIA GRANTEE
AGENCY GRANTEE (If other than an individual, state whether a corporation, partnership, etc.) State Coastal Conservancy City of Santa Barbara
BY (Authorized Signature) BY (Authorized Signature)
  PRINTED NAME AND TITLE OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Amy Hutzel, Executive Officer
Alelia Parenteau,
Sustainability and Resilience Director

ADDRESS & PHONE NUMBER ADDRESS & PHONE NUMBER
1515 Clay Street, 10th Floor
Oakland, CA 94612
Phone: (510) 286-1015
P.O. Box 1990
Santa Barbara, CA 93102
Phone: (805) 603-1346

AMOUNT ENCUMBERED BY

THIS DOCUMENT
$2,015,000.00

PROGRAM/CATEGORY
Local Assistance
FUND TITLE/PROP NO.

General Fund – SLR Adaptation
Prop 4 – Coastal and Flood Mgmt
I certify that this
agreement is exempt
from Department of
General Services’
approval.

Erika Gomez
Procurement and
Contracts Manager

PRIOR AMOUNT

ENCUMBERED FOR THIS

AGREEMENT

FUND ITEM CHAPTER STATUTE FISCALYEAR
$ -0-
3760-101-0001(A)(a) = $1,515,000.00
3760-101-60930001(C) = $500,000.00
(B1111PJ)
12/23
104/25
2023
2025
23/24
25/26

TOTAL AMOUNT

ENCUMBERED TO DATE

PROJECT NAME
$2,015,000.00 Lower Sycamore Creek Flood Mitigation and Restoration Planning I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above.

NAME AND SIGNATURE OF ACCOUNTING OFFICER DATE
AGREEMENT NUMBER AM. NO.

G25-087

TAXPAYERS FEDERAL EMPLOYER
IDENTIFICATION NO.
95-6000787
AGENCY
State Coastal Conservancy

GRANTEE'S NAME
City of Santa Barbara
Attachment 1
City of Santa Barbara
Grant Agreement No. G25-087

I. SCOPE OF AGREEMENT
The grantee shall use the funds granted under this agreement to complete the following project (“the project”) for the Lower Sycamore Creek area of the city of Santa Barbara, as shown on the attached Exhibit A.

The project consists of completing technical studies; conducting public outreach; evaluating design alternatives; and preparing 30% overall project design plans, 60% channel restoration design plans, environmental compliance documents, and permit applications for restoration of a .25 mile section of lower Sycamore Creek south of Highway 101 to reduce flooding in a severely disadvantaged community north of Highway 101, improve habitat, increase flood conveyance capacities, and increase resilience to climate impacts.

The grantee shall carry out the project in accordance with this agreement. The grantee shall provide any funds beyond those granted under this agreement that are needed to complete the project.

II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND

DISBURSEMENT
The grantee shall not commence the project and the Conservancy will not be obligated to disburse any funds under this agreement until the following conditions precedent have been met:

1. The City Council of the grantee has adopted a resolution designating positions whose incumbents are authorized to negotiate and execute this agreement and amendments to it on behalf of the grantee.

2. The Executive Officer of the Conservancy (“Executive Officer”) has approved in writing:
a. The work program for the project as provided in section V. WORK PROGRAM. b. All contractors the at the grantee intends to retain in connection with the project.

3. The grantee has provided to the Conservancy:
a. Evidence that the grantee has provided for required insurance coverage as described in section XIII. INSURANCE.
b. A complete project budget that identifies the estimated costs to complete the project and all sources of funding for the project.

City of Santa Barbara
Grant Agreement No. G25-087

III.TERM OF AGREEMENT
This agreement will take effect when signed by both parties and received in the office of the Conservancy together with the resolution described in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT. This agreement may be signed electronically using a process specified by the Conservancy.

The grantee shall complete all work by June 30, 2029 (“the completion date”).

The grantee shall deliver a final Request for Disbursement to the Conservancy no later than July 31, 2029.

This agreement terminates on September 30, 2029 (the termination date”).

IV.AUTHORIZATION
The signature of the Executive Officer of the Conservancy on this agreement certifies that at its February 19, 2026, meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit B. This agreement is executed under that authorization.

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Standard Provisions
V. WORK PROGRAM
Before beginning the project, the grantee shall submit a detailed work program to the Executive Officer for review and written approval of its consistency with this grant agreement. The work program must include:

1. The specific tasks to be performed.

2. A schedule of completion for the project, specifically listing the date for completing each project component and showing that the project will be completed by the completion date.

3. A budget that identifies how the grantee will use the funds granted under this agreement, including the labor, materials, contractor and indirect costs to be paid for with the funds granted under this agreement (“work program budget”).

If all or any part of the project to be funded under this agreement will be performed by third parties (“contractors”) under contract with the grantee, the grantee shall submit to the Executive Officer for review and approval the names and qualifications of the contractors.

The work program will have the same effect as if included in the text of this agreement.

However, the work program may be modified without amendment of this agreement upon the grantee’s submission of a modified work program and the Executive Officer’s written approval of it. If this agreement and the work program are inconsistent, this agreement will control.

The grantee shall carry out the project in accordance with the approved work program.

VI.COORDINATION AND MEETINGS
The grantee shall coordinate closely with Conservancy staff and other involved entities, including local, state and federal agencies, and shall participate in meetings and other communications as necessary to ensure coordination.

VII. WORK PRODUCTS AND ACKNOWLEDGMENT OF CONSERVANCY

SUPPORT
All material, data, information, and written, graphic or other work produced, developed or acquired under this agreement is subject to the unqualified and unconditional right of the Conservancy to use, reproduce, publish, display, and make derivative use of all such work, or any part of it, free of charge and in any manner and for any purpose; and to authorize others to do so. If any of the work is subject to copyright, trademark, service mark, or patent, the Conservancy is granted and shall have a perpetual, royalty-free, nonexclusive and irrevocable license to use, reproduce, publish, use in the creation of derivative works, and display and City of Santa Barbara
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perform the work, or any part of it, and to grant to any third party a comparable and coextensive sublicense.

The grantee shall include in any contract with a third party for work under this agreement terms that preserve the rights, interests, and obligations created by this section, and that identify the Conservancy as a third-party beneficiary of those provisions.

The grantee shall not utilize the work produced under this agreement for any profit-making venture, nor sell or grant rights to a third party for that purpose.

In order to acknowledge the Conservancy’s support of the project, the grantee shall display the Conservancy’s name and logo in the final report in a prominent location. Acknowledge funding from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4). The grantee shall mention the Conservancy’s support in its projectrelated press releases, contacts with the media, and social media postings, and on its website.

VIII.COSTS AND DISBURSEMENTS
When the Conservancy determines that all conditions in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT have been fully met, the Conservancy shall disburse to the grantee a total amount not to exceed the amount granted under this agreement, in accordance with work program and this section.

A. Timing of Disbursement
The Conservancy will disburse funds after the grantee has incurred costs and expenses, upon the grantee’s satisfactory progress under the approved work program and upon grantee’s submission of a “Request for Disbursement” form. The Conservancy will not disburse the final five percent or $100,000 of the funds granted under this agreement, whichever is lower, until the grantee has complied with section X. PROJECT COMPLETION and the Conservancy has accepted the project.

B. Payable Costs and Expenses
The Conservancy will only disburse funds for these costs and expenses incurred to carry out the project:

1. Grantee’s staff time, provided that hourly rates for grantee’s staff time billed to the Conservancy may not exceed the actual compensation paid by grantee to employees, which may include employee benefits. The grantee shall require its employees to keep records of their time spent on the project for purposes of documenting the employee time billed to the Conservancy.

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2. Grantee’s travel and related expenses in accordance with the rates set forth in “SCC Travel Reimbursement Rates for Grants and Contracts,” as posted on the Conservancy’s website at scc.ca.gov.

3. Costs charged to the grantee by its contractors.

4. Other necessary direct costs that are reasonable in nature and amount, taking into account the nature of the project, its location, and other relevant factors.

5. Grantee’s indirect costs as identified in the work program budget.

Notwithstanding any other provision, after the grantee has satisfied the conditions precedent to commencement of the project set forth in section II. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT, the grantee may request reimbursement, and the Conservancy may reimburse grantee, for grantee’s costs to satisfy the conditions precedent.

C. Requesting Disbursement
The grantee shall request disbursements by filing with the Conservancy a fully executed “Request for Disbursement” form (available from the Conservancy). The grantee shall include in the form its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred, of all work done for which disbursement is requested. The form must be limited to work done, including work by contractors, in one Conservancy fiscal year, which is July 1 through June 30 of the following year. Work that spans two Conservancy fiscal years must be separated into two Requests for Disbursement, one for each fiscal year. The form must also indicate cumulative expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement.

An authorized representative of the grantee must sign the form. Each form must be accompanied by:

1. All receipts and any other source documents for direct expenditures and costs that the grantee has incurred.

2. Invoices from contractors (showing work done in only one Conservancy fiscal year) and any receipts and any other source documents for costs incurred and expenditures by any such contractor, unless the Executive Officer makes a specific exemption in writing.

3. A progress report summarizing the current status of the project and the work for which the grantee is requesting disbursement.

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The grantee shall submit requests for disbursement no more frequently than monthly and no less frequently than quarterly. The grantee’s failure to fully execute and submit one or more Requests for Disbursement with all supporting documents in accordance with this section, will relieve the Conservancy of its obligation to disburse funds to the grantee until the grantee corrects all deficiencies.

IX.EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGET ITEMS
No increase in the total amount of funds granted under this agreement will be valid unless set forth in a written amendment to this agreement. The grantee shall expend funds granted under this agreement consistent with the work program budget. Expenditure on items contained in the work program budget, other than indirect costs, may vary by as much as ten percent per item without prior approval of the Executive Officer. Any deviation that is greater than ten percent for a budget item or that affects indirect costs, requires written approval of the Executive Officer and a revised work program budget. The Conservancy may withhold payment for items that have not received the required approval. Any increase in the funding for a budget item will mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement.

X. PROJECT COMPLETION
The grantee shall complete the project by the completion date provided in section III. TERM OF AGREEMENT. Upon completion of the project, the grantee shall supply the Conservancy with evidence of completion by submitting the following by the final Request for Disbursement date set forth in section III. TERM OF AGREEMENT:

1. The plan and any other work products specified in the work program for the project, each in a format or formats (for example, paper, digital, photographic) approved by the Executive Officer.

2. A fully executed final “Request for Disbursement.” A “final Request for Disbursement” means a Request for Disbursement that includes all remaining amounts for which grantee is entitled to seek payment pursuant to this agreement, including the final five percent or $100,000 of the funds granted under this agreement, whichever is lower.

The Conservancy shall determine whether the grantee has satisfactorily completed the project. If so, the Conservancy shall issue to the grantee a letter of acceptance of the project and disburse the remaining amounts for which grantee is entitled under this agreement. The project will be deemed complete as of the date of the letter.

XI.EARLY TERMINATION, SUSPENSION AND FAILURE TO PERFORM Before the project has commenced, either party may terminate this agreement for any reason by giving the other party seven days’ prior written notice.

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Before the project is complete, the Conservancy may terminate this agreement for any reason by giving the grantee thirty days’ prior written notice. Before the project is complete, the Conservancy may suspend this agreement for any reason by giving the grantee seven days’ prior written notice. In either case, the grantee shall immediately stop work under the agreement and take all reasonable measures to prevent further costs to the Conservancy. The Conservancy shall be responsible for any reasonable and non-cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate or suspend, but only up to the undisbursed balance of funding authorized in this agreement. Any notice suspending work under this agreement will remain in effect until further written notice from the Conservancy authorizes work to resume.

If the grantee fails to complete the project as required, or fails to fulfill any other obligations of this agreement prior to the termination date, the grantee will be liable for immediate repayment to the Conservancy of all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph does not limit any other remedies the Conservancy may have for breach of this agreement.

Before the project is complete, the grantee may terminate this agreement for any reason by giving the Conservancy seven days’ prior written notice and repaying to the Conservancy all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and allow early termination without repayment for work partially completed.

On or before the date of termination of the agreement under this section, whether terminated by the grantee or the Conservancy, the grantee shall provide the Conservancy with all work, material, data, information, and written, graphic or other work produced, developed or acquired under this agreement (whether completed or partial), in appropriate, readily useable form.

The parties expressly agree to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this agreement under this section.

The grantee shall include in any agreement with any contractor retained for work under this agreement a provision that entitles the grantee to suspend or terminate the agreement with the contractor for any reason on written notice and on the same terms and conditions specified in this section.

XII. INDEMNIFICATION AND HOLD HARMLESS
The grantee shall be responsible for, indemnify and hold harmless the Conservancy, its officers, agents and employees from any and all liabilities, claims, demands, damages, or costs, including without limitation litigation costs and attorneys fees, resulting from or arising out of the willful or negligent acts or omissions of the grantee, its officers, agents, contractors, subcontractors and employees, or in any way connected with or incident to this agreement, except for the active City of Santa Barbara
Grant Agreement No. G25-087

negligence of the Conservancy, its officers, agents or employees. The duty of the grantee to indemnify and hold harmless includes the duty to defend as provided in Civil Code Section 2778.

This agreement supersedes any right the grantee may have as a public entity to indemnity and contribution as provided in Gov. Code Sections 895 et seq.

The grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the State, its officers, agents or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this agreement.

Nothing in this agreement is intended to create in the public or in any member of it rights as a third-party beneficiary under this agreement.

XIII.INSURANCE
Throughout the term of this agreement, the grantee shall procure and maintain insurance, as specified in this section, against claims for injuries to persons or damage to property that may arise from or in connection with any activities by the grantee or its agents, representatives, employees, or contractors associated with the project undertaken pursuant to this agreement.

As an alternative, with the written approval of the Executive Officer, the grantee may satisfy the coverage required by this section in whole or in part through: (a) its contractors’ procurement and maintenance of insurance for work under this agreement, if the coverage otherwise fully satisfies the requirements of this section; or (b) the grantee’s participation in a “risk management” plan, self-insurance program or insurance pooling arrangement, or any combination of these, if consistent with the coverage required by this section.

1. Minimum Scope of Insurance. Coverage shall be at least as broad as:
a. Insurance Services Office (“ISO”) Commercial General Liability coverage, occurrence basis (Form CG 00 01) or comparable.
b. Automobile Liability coverage - ISO Form Number CA 0001, Code 1 (any auto). c. Workers’ Compensation insurance as required by the Labor Code of the State of California.

2. Minimum Limits of Insurance. Grantee shall maintain coverage limits no less than:
a. General Liability:
(Including operations,
products and completed
operations, as applicable)
$1,000,000 per occurrence for bodily injury,
personal injury and property damage.

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b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
c. Worker’s Compensation: Worker’s compensation as required by law.

3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Executive Officer.

4. Waiver of Subrogation. The grantee hereby grants to the State of California, its officers, agents, employees, and volunteers, a waiver of any right to subrogation which any insurer of the grantee may acquire against the State of California, its officers, agents, employees, and volunteers, by virtue of the payment of any loss under such insurance. Grantee agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the grantee has received a waiver of subrogation endorsement from the insurer.

5. Acceptability of Insurers. Insurance must be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to the Conservancy and approved in writing by the Executive Officer.

6. Verification of Coverage. The grantee shall furnish the Conservancy with original certificates and amendatory endorsements, or copies of the applicable policy language, effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Officer before work commences. The Conservancy reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage, at any time.

7. Contractors. The grantee shall require each contractor to provide and maintain coverage consistent with the requirements of this section. To the extent generally available, grantee shall also require each professional contractor to provide and maintain errors and omissions liability insurance appropriate to the contractor’s profession and in a reasonable amount in light of the nature of the project with a minimum limit of liability of $1,000,000].

8. Premiums and Assessments. The Conservancy is not responsible for premiums and assessments on any insurance policy.

XIV. AUDITS/ACCOUNTING/RECORDS
The grantee shall maintain financial accounts, documents, and records (collectively, “required records”) relating to this agreement, in accordance with the guidelines of “Generally Accepted Accounting Principles” (“GAAP”) published by the American Institute of Certified Public Accountants. The required records include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, disbursement of all funds related to work under the City of Santa Barbara
Grant Agreement No. G25-087

agreement, and time and effort reports that permit tracing from the request for disbursement forms to the accounting records and to the supporting documentation.

Additionally, the Conservancy or its agents may review, obtain, and copy all required records.

The grantee shall provide the Conservancy, California State Auditor, Department of Finance, their officers, employees and agents with any relevant information requested and with access to the grantee’s premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this agreement and any applicable laws and regulations.

The grantee shall retain the required records for a minimum of three years following final disbursement by the Conservancy. The records will be subject to examination and audit by the Conservancy and the California State Auditor during the retention period.

If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors.

The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement.

XV. NONDISCRIMINATION
During the performance of this agreement, the grantee and its contractors shall not deny the agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The grantee shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The grantee and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the Conservancy to implement such article. The grantee shall permit access by representatives of the Civil Rights Department and the Conservancy upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the Conservancy shall require to ascertain compliance with this clause. The grantee and its contractors shall give written notice of their obligations under this City of Santa Barbara
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clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.)
The grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this agreement.

XVI. AMERICANS WITH DISABILITIES ACT
By signing this agreement, grantee certifies that it is in compliance with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

XVII. PREVAILING WAGE
Work done under this grant agreement may be subject to the prevailing wage and other related requirements of the California Labor Code, Division 2, Part 7, Chapter 1, Sections 1720-1861.

If required by law to do so, the grantee shall pay prevailing wage to all persons employed in the performance of any part of the project and otherwise comply with all associated requirements and obligations.

The grantee is responsible for determining whether the project is subject to prevailing wage laws, and for complying with all labor laws applicable to the project. The grantee may also review the Conservancy publication, “Information on Prevailing Wage Laws for State Coastal Conservancy Grantees” (2023), available from the Conservancy on request, which provides general information and is not legal advice to the grantee on whether the grantee’s project is subject to prevailing wage laws.

XVIII.DRUG-FREE WORKPLACE
The grantee’s signature on this agreement constitutes the certification required by Government Code Section 8355 (Drug-Free Workplace Act of 1990), which requires that all state grantees provide a drug-free workplace by doing all of the following:

1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the person’s or organization’s workplace and specifying actions that will be taken against employees for violations of the prohibition.

2. Establishing a drug-free awareness program to inform employees about all of the following:
a. The dangers of drug abuse in the workplace.
b. The person’s or organization’s policy of maintaining a drug-free workplace. c. Any available drug counseling, rehabilitation, and employee assistance programs. d. The penalties that may be imposed upon employees for drug abuse violations.

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3. Requiring that each employee engaged in the performance of the grant be given a copy of the drug-free workplace statement and that, as a condition of employment on the grant, the employee agrees to abide by the terms of the statement.

XIX. EXECUTIVE ORDER N-6-22 – RUSSIA SANCTIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the Conservancy determine the grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement.

The Conservancy shall provide the grantee advance written notice of such termination, allowing the grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the Conservancy.

XX. INDEPENDENT CAPACITY
The grantee, and the agents and employees of the grantee, in the performance of this agreement, are acting in an independent capacity and not as officers or employees or agents of the State of California.

XXI. ASSIGNMENT
Without the written consent of the Executive Officer, the grantee shall not assign this agreement in whole or in part.

XXII. TIMELINESS
Time is of the essence in this agreement.

XXIII.AMENDMENT
Except as expressly provided in this agreement, no change in this agreement will be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement will be binding on any of the parties.

XXIV. SURVIVAL
The obligations in sections VII. WORK PRODUCTS AND ACKNOWLEDGMENT OF CONSERVANCY SUPPORT and XII. INDEMNIFICATION AND HOLD HARMLESS survive the termination of this agreement.

EXHIBIT A
Project Location Map
Project Location

COASTAL CONSERVANCY
Staff Recommendation
February 19, 2026

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT Project No. 25-053-01
Project Manager: Rachel Couch
RECOMMENDED ACTION: Authorization to disburse up to $2,015,000 to the City of Santa Barbara to undertake the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project, consisting of completing technical studies; conducting public outreach; evaluating design alternatives; and preparing 30% overall project design, 60% channel restoration design, environmental compliance documents, and permit applications for restoration of lower Sycamore Creek in Santa Barbara County.

LOCATION: City of Santa Barbara, Santa Barbara County

EXHIBITS
Exhibit 1: Project Location Map
Exhibit 2: Figures and Photos
Exhibit 3: Project Letters

RESOLUTION AND FINDINGS
Staff recommends that the State Coastal Conservancy adopt the following resolution and findings.

Resolution:

The State Coastal Conservancy hereby authorizes a grant of an amount not to exceed two million fifteen thousand dollars ($2,015,000) to the City of Santa Barbara (the “grantee”) to undertake the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project, consisting of completing technical studies; conducting public outreach; evaluating design alternatives; and preparing 30% overall project design, 60% channel restoration design, environmental compliance documents, and permit applications for restoration of lower Sycamore Creek in Santa Barbara County (the “project”).

Prior to commencement of the project, the grantee shall submit for the review and written approval of the Executive Officer of the Conservancy (Executive Officer) the following:

EXHIBIT B

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT

1. A detailed work program, schedule, and budget.

2. Names and qualifications of any contractors to be retained in carrying out the project.

Notwithstanding the foregoing, this Conservancy resolution is effective only if legislation is enacted that exempts program guidelines and selection criteria for the disbursement of funds from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (“Proposition 4”), Public Resources Code Sections 90000-95015, from the requirements of the Administrative Procedure Act at Government Code sections 11340-11361.

Findings:

Based on the accompanying staff recommendation and attached exhibits, the State Coastal Conservancy hereby finds that:

1. The proposed authorization is consistent with Chapter 3 (Section 31113) of Division 21 of the Public Resources Code, regarding the impacts of climate change.

2. The proposed project is consistent with the current Conservancy Project Selection Criteria.

STAFF RECOMMENDATION
PROJECT SUMMARY:

Staff recommends the Conservancy authorize a $2,015,000 grant to the City of Santa Barbara (the “City”) to undertake the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project, consisting of completing technical studies; conducting public outreach; evaluating design alternatives; and preparing 30% overall project design, 60% channel restoration design, environmental compliance documents, and permit applications for restoration of lower Sycamore Creek in Santa Barbara County (the “project”). The project will develop plans to widen and restore the lower reach of Sycamore Creek (creek) south of Highway 101 to reduce flooding in a severely disadvantaged community north of Highway 101, improve habitat, increase flood conveyance capacities, and increase resilience to climate impacts. See Exhibit 1 for project location.

The project site and area immediately upstream have been subject to a significant number of damaging floods. Since 1862, fourteen separate floods of sufficient magnitude to cause extensive damage along Lower Sycamore Creek have occurred, with the worst documented flooding in the area taking place in 1969, 1971, 1995, and 1998. Among the areas impacted by these floods is a severely disadvantaged community. Many of the most damaging storm events were preceded by wildfires that burned the watershed and included substantial debris flows and deposition. Over 50% of Sycamore Creek's Watershed is within a High Fire Hazard Area (see Exhibit 2), making the watershed very vulnerable to fire, and posing a high risk of property damage and loss of life when fires are followed by a significant storm event.

The current channel capacities are constrained to less than a 10-year storm event.

Furthermore, recent modeling conducted for the City shows that rainfall rates are significantly increasing in intensity due to rising atmospheric temperatures. It is projected that what was once the 100-year rainfall event such as that seen in February 1998 will be seven times more

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT

likely to occur after 2030 and the 10-year rainfall event, such as was seen in January 2023, will be twice as likely to occur. Additionally, sea-level rise will exacerbate flood risks along lower Sycamore Creek due to tidal influence in the lower third of the project reach.

Widening and restoring habitat in lower Sycamore Creek channel will result in numerous benefits including: reduction in flood frequency, extents, and severity, including in a severely disadvantaged community; increased resilience to the impacts of sea-level rise and increased flooding from changes in rainfall patterns as a result of climate change; reduced need for habitat destroying bank hardening to protect existing development; improved habitat for endangered tidewater goby and southern steelhead, as well as other estuarine, riverine, and riparian species; and improved creek corridor aesthetics and public enjoyment in this highly visible location adjacent to play fields, a zoo, and coastal walking and bike paths heavily used by locals and tourists.

The project will undertake detailed modeling and design to inform evaluation of project alternatives. To facilitate channel widening and flood risk reduction, four existing bridges will need to be removed and redesigned. One of the bridges to be redesigned is the railroad bridge owned and managed by Union Pacific Railroad (UPRR). City staff have coordinated with UPRR staff and obtained written support for this application and project. The City will undertake the necessary technical studies including: modeling of hydrologic, hydraulic, fluvial/sediment transport; flood modeling including sea-level rise and increased rainfall intensities; and studies of biological and cultural resources, geotechnical conditions, and traffic and parking.

Following preparation of technical reports and a feasibility analysis, the City will prepare detailed conceptual (30%) design plans and a subsequent preliminary channel restoration design plan set (60% level). The City will also develop cost estimates. The City will conduct environmental review pursuant to the California Environmental Quality Act (CEQA). The anticipated level of CEQA review is a mitigated negative declaration. The project will include a robust public outreach process and agency consultations as part of the draft feasibility analysis and as part of CEQA review. Finally, the City will prepare applications for environmental permits for the chosen alternative. The project will result in a “shovel ready” project eligible for implementation funding for final designs and construction.

Site Description: The project site is a .25-mile section of Sycamore Creek located between Highway 101 and the ocean. This creek section is known as lower Sycamore Creek, and it includes the estuary of Sycamore Creek. The project site is within the City of Santa Barbara, and the City owns most of the site. Property owner agreements will be finalized once CEQA review is complete if needed. Given that the project would increase flood protection for neighboring properties, support and permission to complete the project is anticipated.

UPRR owns one of the bridges that needs to be redesigned to greatly increase flow capacity. The City has been coordinating with UPRR on the project and has received a letter of support for the planning phase of the project.

Sycamore Creek is a subwatershed of the Santa Ynez Mountains, which run east-west overlooking the coastal plain and the Santa Barbara Channel Islands in southern Santa Barbara County. The .25-mile creek section south of Highway 101 currently consists of differing channel geometries (concrete walls, earthen banks, and sections of rip-rap), concrete bridges and

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT

culverts. The creek banks and channel are highly degraded in a straightened configuration and dominated by non-native vegetation providing substandard habitat conditions. The reach of the creek spanning south of the highway to the ocean is a mix of freshwater and estuarine conditions that are controlled by estuary mouth conditions (open or closed to flows from the ocean) at East Beach. The creek is surrounded by homes, streets, sidewalks, bike paths, a park, Dwight Murphy Field, and the Santa Barbara Zoo parking lot. Pedestrians, bicyclists, and vehicles heavily traffic the area.

Sycamore Creek has insufficient channel capacity through the project reach which significantly impacts upstream flooding of a densely packed, largely low‐income residential area within the lower east side neighborhood north of Highway 101, as well as recreational and open space parks and infrastructure south of Highway 101. In addition, while the habitat in the area is highly degraded, the creek and estuary have potential to be restored to support special status species (tidewater gobies, southern steelhead, and southwestern pond turtles) and numerous native birds, aquatic animals, and plants.

Grant Applicant Qualifications: The City of Santa Barbara has successfully administered previous grant funds and carried out similar types of projects including large creek and estuary restoration projects with Conservancy and local funds. The City will continue to maintain the future implementation project site. The restoration project site will be maintained by the City’s Creeks Division, and the bridge structures will be monitored and maintained by Caltrans’ Structures and City Streets and Engineering Divisions. The City has permanent funding for creek stewardship (Measure B) which will ensure the sustainable, long-term management, maintenance, and monitoring of the project.

CONSISTENCY WITH CONSERVANCY’S PROJECT SELECTION CRITERIA:

The proposed project is consistent with the Conservancy’s Project Selection Criteria, last updated on September 23, 2021, in the following respects:

Selection Criteria

1. Extent to which the project helps the Conservancy accomplish the objectives in the Strategic Plan.

See the “Consistency with Conservancy’s Strategic Plan” section below.

2. Project is a good investment of state resources.

The project includes development of a plan using nature-based solutions to decrease flooding in a disadvantaged community and increased climate resilience for the City of Santa Barbara.

The project is consistent with the California Climate Adaptation Strategy’s priority to “build public health and safety to protect against increasing climate risks”. The project is identified as a high priority in the City’s 2021 Sea Level Rise Adaptation Plan (Adaptation Plan) and the 2023 Local Hazard Mitigation Plan. When completed, the project will benefit disadvantaged and severely disadvantaged communities of the Lower Eastside by reducing impacts from flooding and other coastal hazards. This neighborhood is identified in the Adaptation Plan as particularly vulnerable to the impacts of sea-level rise given its classification as low-income, disadvantaged,

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT

low-English proficiency, and high percentage of minority residents. The budget is reasonable based on the City Engineering Department’s own cost estimate and is consistent with creek restoration projects the City has implemented. The City will contribute a total of $1,165,000 of funding and in-kind support to this phase of the project (See Project Financing section).

3. Project includes a serious effort to engage tribes. Examples of tribal engagement include good faith, documented efforts to work with tribes traditionally and culturally affiliated to the project area.

The City will engage with all local Chumash Tribal bands as part of public outreach on the project including ongoing engagement with Chumash representatives to receive input on the restoration design approach and community educational opportunities. The City is already working closely with Chumash Tribal bands on another waterfront area project with the goal of reestablishing access to ancestral lands and village sites and will use that approach as a model for this project.

4. Project benefits will be sustainable or resilient over the project lifespan.

The project is centered around resiliency and climate adaptation, and plans will identify the expected lifespan of proposed actions in light of sea-level rise or other climate change impacts.

The options considered will avoid making future climate adaptation more difficult.

5. Project delivers multiple benefits and significant positive impact.

The project will advance planning and adaptation efforts that will: a) provide co-benefits and alleviate multiple stressors within communities, such as improving flood protection, habitat enhancements, improving beach habitats, and maintaining beach access, water quality, and other environmental benefits; b) increase equity and environmental justice by benefitting underserved, low-income, and/or frontline communities on the City’s Lower Eastside and; c) increase community-preparedness and resilience to future climate change impacts such as sealevel rise, storm surge high tide events, and flooding. The project will include naturalized creek banks with restoration including tree planting and opportunities for community education and engagement through project outreach.

6. Project planned with meaningful community engagement and broad community support.

The project will include stakeholder meetings, a public comment period, and multiple public meetings including the Creeks Advisory Committee, Planning Commission, Sustainability Council Committee, and City Council. Stakeholder meetings will target nearby property owners as well as those impacted by upstream flooding. Meetings will be held both in person, and with virtual options. City produced materials and mailers will include information in both English and Spanish. Flooding is an issue of very high concern for the lower eastside community that includes a number of Spanish speakers. Specific events and outreach will occur to this community in Spanish and through trusted members of the community (Promotores Network or similar organization).

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT

PROJECT FINANCING
Coastal Conservancy $2,015,000
City of Santa Barbara $700,000
Project Total $2,715,000
The anticipated sources of Conservancy funding for this project are from two appropriations.

The first is an appropriation of the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, also known as the 2024 Climate Bond or Proposition 4 (Public Resources Code (PRC), Sections 90000 to 95015). The 2024 Climate Bond, PRC Section 92015 allocates funds for “the purpose of coastal and combined flood management projects and activities for developed shoreline areas… at risk of current flooding and flooding due to sea level rise.” The project site is within the combined coastal and creek floodplain of lower Sycamore Creek. The project is consistent with the 2024 Climate Bond because it will develop plans to reduce flooding along Lower Sycamore Creek into neighboring developed areas, including a severely disadvantaged community.

The second anticipated funding source is an appropriation from the General Fund to the Conservancy for “urgent sea level rise adaptation and coastal resilience” (Budget Act of 2023, Chapter 12, Statutes of 2023 (SB 101) as amended by Chapter 38, Statutes of 2023 (AB 102)).

The coastal resilience funds are available for the purposes set forth in Section 52 of Chapter 258 of the Statutes of 2021, which sets forth a detailed description of the purposes of the coastal resilience funds, including projects that build resilience for coastal communities and restore and increase the resilience of coastal ecosystems to climate change impacts. The project is consistent with this funding because it will restore a reach of Lower Sycamore Creek and decrease impacts of flooding to adjacent developed areas. These improvements will increase community and ecosystem resilience to climate change impacts from increased storm intensities and sea level rise induced flooding.

The City will provide approximately $465,000 of in-kind support to this planning effort, in addition to the $700,000 financial contribution. This in-kind support includes administrative overhead and staff time from various City departments.

Unless specifically identified as “Required Match,” the other sources of funding and in-kind contributions described above are estimates. The Conservancy does not typically require matching funds or in-kind services, nor does it require documentation of expenditures from other funders or of in-kind services. Typical grant conditions require grantees to provide any funds needed to complete a project.

CONSISTENCY WITH CONSERVANCY’S ENABLING LEGISLATION:

The proposed project will be undertaken pursuant to Section 31113 of Chapter 3 of Division 21 of the Public Resources Code, which authorizes the Conservancy to address the impacts and potential impacts of climate change on resources within the Conservancy’s jurisdiction (Section 31113(a)).

LOWER SYCAMORE CREEK FLOOD MITIGATION AND RESTORATION PLANNING PROJECT

Pursuant to Section 31113(b), the Conservancy is authorized to award grants to public agencies to undertake projects that include reducing greenhouse gas emissions, and addressing extreme weather events, sea level rise, flooding, and other coastal hazards that threaten coastal communities, infrastructure, and natural resources. Section 31113 requires the Conservancy to prioritize projects that use natural infrastructure to help coastal communities adapt to climate change and projects that provide multiple public benefits, including, but not limited to, protection of communities, natural resources, and recreational opportunities. Consistent with these sections, the project will plan a creek restoration that will use a nature-based measure to reduce flooding in urban areas adjacent to and upstream of lower Sycamore Creek and that will improve habitat for fish and wildlife.

CONSISTENCY WITH CONSERVANCY’S 2023-2027 STRATEGIC PLAN:

Consistent with Goal 1.1, Commit Funding to Benefit Systemically Excluded Communities, the proposed project will advance planning for a project that will reduce flooding in a severely disadvantaged community.

Consistent with Goal 4.1, Sea Level Rise Adaptation Projects, the proposed project will complete a plan to adapt Lower Sycamore Creek using nature-based measures to protect local communities and natural resources in the City of Santa Barbara from the impacts of flooding from coastal storms and sea-level rise.

Consistent with Goal 4.3 Multi-Benefit Nature-Based Climate Adaptation, the proposed project will prepare a plan that increases the coastal resilience of Santa Barbara’s Eastside neighborhood by advancing nature-based climate adaptation solutions to reduce flooding impacts while also improving habitat in Lower Sycamore Creek.

CEQA COMPLIANCE:

The proposed planning project consists of preparing feasibility and technical studies, preparing preliminary designs, and conducting California Environmental Quality Act (CEQA) review. Thus, the proposed project involves only data gathering, resource evaluation, planning, and feasibility analyses for possible future actions that have not yet been approved or funded. These activities are statutorily exempt from review under CEQA pursuant to Title 14 of the California Code of Regulations Section 15262, which exempts planning and feasibility studies for possible future actions that have not yet been approved, adopted, or funded and categorically exempt under Section 15306, which exempts data collection and resource evaluation activities that do not result in a serious or major disturbance to an environmental resource. The project will consider environmental factors and will not cause a serious or major disturbance to an environmental resource.

Upon approval of the project, Conservancy staff will file a Notice of Exemption.

Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA ACCEPTING GRANT FUNDS FROM THE CALIFORNIA

STATE COASTAL CONSERVANCY IN THE AMOUNT OF
$2,015,000, AUTHORIZING THE SUSTAINABILITY AND

RESILIENCE DIRECTOR, OR DESIGNEE, TO EXECUTE A GRANT

AGREEMENT FOR THE LOWER SYCAMORE CREEK FLOOD

MITIGATION AND RESTORATION PLANNING PROJECT AND
AMENDING RESOLUTION NO. 2026-057 TO APPROVE AN

INCREASE IN REVENUE AND EXPENDITURE APPROPRIATIONS

IN THE SUSTAINABILITY AND RESILIENCE CREEKS FUND IN
THE AMOUNT OF $2,015,000.

WHEREAS, the City of Santa Barbara is authorized to enter into an agreement with the California State Coastal Conservancy for the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project;
WHEREAS, the California State Coastal Conservancy has awarded $2,015,000 in grant funding to the City of Santa Barbara for the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project through the 2024 Climate Bond; WHEREAS, the said project is intended to develop plans to widen and restore the lower reach of Sycamore Creek to increase flood conveyance capacities, reduce upstream flooding, improve creek side habitat, and increase resilience to climate impacts; 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 2027 on July 1, 2026;
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 funding totaling $2,015,000 from the California State Coastal Conservancy.

Section 2. The Council authorizes the Sustainability and Resilience Director, or designee, of the City of Santa Barbara to execute an agreement between the City of Santa Barbara and the California State Coastal Conservancy for completion of the Lower Sycamore Creek Flood Mitigation and Restoration Planning Project, according to the terms and conditions set forth in the agreement.

Section 3. The Council, in accordance with the provisions of Section 1205 of the Charter, amend the budget for the fiscal year 2027, as adopted by Resolution No. 2026-057, to increase revenue and expenditure appropriations by $2,015,000, in the Fiscal Year 2027 Sustainability & Resilience Miscellaneous Grants Fund Budget.

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: August 4, 2026
To: Mayor and Councilmembers
From: City Administrator’s Office
Subject: Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution]
Recommendation
That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Downtown Community Benefit Improvement District Special Assessment on the 2026-2027 Parcel Tax Roll; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Requesting the Board of Supervisors of Santa Barbara County to Include the Coast Village Community Benefit Improvement District Special Assessment on the 2026-2027 Parcel Tax Roll.

Discussion:

The City Council adopted Chapter 4.45 of the Santa Barbara Municipal Code in 2021 to facilitate the formation of Community Benefit Improvement Districts (CBID) to establish a procedure for property owners to petition to fund special services through special benefit assessments on their properties. The levy of assessments may pay for services above and beyond general municipal service levels. The assessments may pay for services such as:
additional sidewalk sweeping; beautification programs; district branding and marketing and promotions; parking mitigation programs; district administration; and possibly programs to mitigate the homeless issues in the area. These are outlined in each district's Management District Plan (Plan). The Plan also establishes the methodology to calculate each parcel’s special assessment.

At the June 7, 2022 City Council meeting, Council adopted a resolution establishing the Coast Village CBID and levying the assessment in connection with the outlined district. At the June 25, 2024 City Council meeting, Council adopted a resolution establishing the Downtown CBID and levying the assessment. To assure that the assessments are collected on the tax roll Agenda Item No. 8
Council Agenda Report
Annual Assessments for Downtown Community Benefit Improvement District and Coast Village Community Benefit Improvement District [Resolution]

and as part of the annual process to collect these assessments, a resolution requesting the assessment amounts for that specific fiscal year must be adopted by the City Council and a request must be sent to the County Board of Supervisors requesting that the approved assessment amounts be included on the Parcel Tax Roll. The adoption of these resolutions is a ministerial action and does not allow for them to change any aspect of the CBID.

For Parcel Tax Roll 2026-2027, this will be the third year of the Downtown CBID. There is no increase proposed to the Non-Governmental parcels to be placed on the tax roll. The total amount is $1,674,583.69.

For Parcel Tax Roll 2026-2027, this will be the fifth year for the Coast Village CBID. There is no increase proposed to the Non-Governmental parcels to be placed on the tax roll. The total amount is $315,726.49.

Budget/Financial Information:

There is no direct financial impact to the City of Santa Barbara with the adoption of these resolutions. However, as stated in the Downtown CBID Plan, the City would be assessed approximately $179,191.51 in Fiscal Year 2026-2027 for properties located in the Downtown CBID. These properties will be invoiced by the Downtown CBID third party administrator directly to the City of Santa Barbara.

Attachments:

1. Downtown CBID Management District Plan

2. Coast Village CBID Management District Plan
Prepared By: Adriana Morales, Administrative Analyst III Submitted By: Alelia Parenteau, Acting Deputy City Administrator Approved By: Kelly McAdoo, City Administrator

THE DOWNTOWN SANTA BARBARA

COMMUNITY BENEFIT IMPROVEMENT DISTRICT

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

Prepared for:

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

New City America, Inc.

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

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

1. Management District Plan Summary 3

2. Downtown Santa Barbara CBID Boundaries 11

3. District Improvement and Activity Plan 18

4. Assessment Methodology 23

5. District Rules, Regulations and Governance 34

6. Implementation Timetable 34

7. Assessment Roll of Properties Included 35

Attachment:

A. Engineer’s Report

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

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

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

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

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

The meeting dates of the Steering Committee included the following:

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

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

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

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

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

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

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

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

MOST IMPORTANTLY, THESE PROPERTY ASSESSMENT FUNDS WILL NOT REPLACE EXISTING

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

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

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

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

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

CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION

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

EXHIBIT A

DISTRICT IDENTITY AND PLACEMAKING

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

ADMINISTRATION/PROGRAM MANAGEMENT

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

CONTINGENCY/CITY AND COUNTY FEES/RESERVE

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

EXHIBIT A

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

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

First Year Annual Costs Per Benefit Zone

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

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

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

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

Boundaries:

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

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

2. whether the parcels are publicly owned and

3. if the parcel is a single residential condominium.

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

Zone 1: Core Area:

In general,
On the northwest side: the southern side of Sola Street On the northeast side, the parcels on west side of Anacapa Street On the southwest side, the eastern side of Chapala Street On the southeast side, the north side of Highway 101.

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

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

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

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

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

District Formation
Under the local enabling ordinance, District formation requires a submission of petitions from property owners in the proposed district representing more than 30% of the total assessments to be paid into the CBID.

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

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

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

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

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

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

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

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

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

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Section 2 Downtown Santa Barbara Community Benefit Improvement District Boundaries

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

Zone 1: Core Area:

In general,
On the northwest side: the southern side of Sola Street On the northeast side, the parcels on west side of Anacapa Street On the southwest side, the eastern side of Chapala Street On the southeast side, the north side of Highway 101.

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

Benefit Zones
The district consists of two benefit zones.

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

ZONE 1

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

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

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

Zone 1 Eastern Boundary:

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

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

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

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

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Section 3
District Improvement and Activity Plan

Explanation of Special Benefit Services

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

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

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

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

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

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

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

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

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

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

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

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

Property Data by Benefit Zone

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

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

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

Proposed First Year Downtown Santa Barbara District CBID Budget

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. The parcel-by-parcel allocation method

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

3. The composite district overlay determinant method.

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

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

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Total Year 1 – 2024 Special + General Benefit Costs

Category of Special
Benefit Services

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

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

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

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

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Explanation of Difference in Benefit Zone Assessments:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TOTAL PARCEL ASSESSMENT

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

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

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

Maximum Annual Assessment Adjustments:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A
ATTACHMENT 1

THE DOWNTOWN SANTA BARBARA

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

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

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

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

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

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

April 4, 2024
3/31/26

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

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

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

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

The DSB CBID is generally bounded by:

Zone 1: Core Area:

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

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

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

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

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

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

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

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

Southeastern (“Southern”) Boundary:

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

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

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

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

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

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

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

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A

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

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

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

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

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

EXHIBIT A

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

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

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

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

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

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

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

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

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

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

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

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

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

CIVIL SIDEWALKS/SAFETY & CLEANLINESS/BEAUTIFICATION:

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

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

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CONTINGENCY
& RESERVE TOTAL %
% 65.8267% 13.9825% 14.9813% 5.2095% 100.00%
1 $1,288,471 $273,689 $293,238 $101,970 $1,957,031 88.8601% 2 $161,529 $34,311 $36,762 $12,783 $245,722 11.1399%
TOTAL $1,450,000 $308,000 $330,000 $114,753 $2,202,753 100.0000%

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS,

SAFETY,

CLEANLINESS &

BEAUTIFICATION

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.”
The individual and total parcel assessments attributable to special property benefits are shown in Appendix

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT A
Special Assessment Circumstances

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

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

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

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

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

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

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

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

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

Year 1 – 2025 - Assessable Benefit Units

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

FRONTAGE
(LF)
RESID
CONDO

BLDG AREA
(SF)
# of

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

EXHIBIT A
Year 1 – 2025 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE

RESID CONDO

BLDG AREA

REVENUE
TOTAL

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

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

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

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

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

YEAR 1 –2025 Assessment Rates

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

FRONTAGE
ASSMT
RATE
($/LF)
RESID
CONDO

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

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

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

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

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

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

YEAR &

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

FRONTAGE
ASSMT
RATE
($/LF)
RESID
CONDO

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

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

Miscellaneous DSB CBID Provisions
Time and Manner of Collecting Assessments:

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

Bonds:

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

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

EXHIBIT A
APPENDIX 1

DSB CBID
YEAR 1 – 2025

ASSESSMENT ROLL

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

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

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

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

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

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

EXHIBIT A
APPENDIX 2

DSB CBID BOUNDARY MAP

EXHIBIT A

EXHIBIT A

EXHIBIT A
1 THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

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

Prepared for the:

The Coast Village Association
City of Santa Barbara
Prepared by:

New City America, Inc.

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

Attachment 2
2 Section Number

1. Management District Plan Summary 3

2. Coast Village CBID Boundaries 9

3. District Improvement and Activity Plan 11

4. Assessment Methodology 17

5. District Rules, Regulations and Governance 26

6. Implementation Timetable 26

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Broken down by benefit zone:

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

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

Boundaries:

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

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

Costs:

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

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

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

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

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

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

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

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

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

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

Benefit Zones
The District consists of two benefit zones.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Data broken down by benefit zone:

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

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

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

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

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

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

Operating Budget
A projected operating budget, based upon the local enabling ordinance, has an initial 5 - year term and may be renewed for up to 20 years more. New City America has listed the maximum percentage of allowable annual increases based upon the current data within the district, with the following assumptions:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the improvement or the maintenance and operation expenses of an improvement or for the cost of property service being provided. Per California Constitution Article XIII D, Section 2(i), “Special Benefit,” means a and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost of the proportional special benefits conferred upon that parcel. Only special benefits are assessable, and these benefits must be separated from any general benefits. Properties are assessed as defined on the County Assessor’s most current parcel maps. The preceding methodology is applied to the database of parcels within the District. The process for compiling the property database includes the following steps:

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

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

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

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

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

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

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

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

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

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

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

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

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

Residential
Condo/Apt.

Bldg.

Sq. Ft.

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

Residential
Condo/Apt Bldg.

Sq. Ft.

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

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

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

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

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

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

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

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

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

THE COAST VILLAGE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

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

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

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

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

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

Empirical assessment engineering analysis throughout California has found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for the CVCBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the CVCBID, general benefit to the public at large within the CVCBID and general benefit to parcels outside the CVCBID.
.

General Benefit – Assessed Parcels within the CVCBID
CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 115 parcels within the CVCBID are distinct and special but in the case of the CVCBID, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the CVCBID funded programs and services are specially geared to the unique needs of each parcel within the CVCBID and are directed specially only to these parcels within the CVCBID. This concept is further reinforced by COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
7 the proportionality of special benefits conferred on each parcel within the CVCBID as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 115 parcels within the CVCBID equates to $748 or (.25% x $296,749).

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

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

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

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

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

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

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

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

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

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

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

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

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

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

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

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

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

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

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

CIVIL SIDEWALKS:

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

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

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

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

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

CVCBID Year 1 - Special Benefit Assessment Budget by Zone

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

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

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

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

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

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

YEAR

BENEFIT
ZONE
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& PROGRAM

MANAGEMENT

CAPITAL

IMPROVEMENTS
& TRAFFIC

MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

40.670852% of the overall assessment revenue.

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

Special Assessment Circumstances

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

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

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

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

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

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

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

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

BENEFIT
ZONE

BLDG AREA
(SQ FT)

LAND AREA
(SQ FT)
STREET

FRONTAGE
(LN FT)
RESID
CONDO

BLDG AREA
(SQ FT)
# of

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

Year 1 - Assessment Revenue

BENEFIT
ZONE

BLDG AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE
RESID
CONDO

BLDG AREA

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

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

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

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

YEAR 1 - Assessment Rates

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)

RESID CONDO

BLDG AREA

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

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

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

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

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

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

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

BENEFIT
ZONE

BLDG AREA
ASSMT
RATE ($/SQ
FT)

LAND AREA
ASSMT
RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)
RESID

CONDO BLDG

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

Miscellaneous CVCBID Provisions
Time and Manner of Collecting Assessments:

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

Bonds:

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

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

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

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

CVCBID BOUNDARY MAP
COAST VILLAGE CBID – ASSESSMENT ENGINEER’S REPORT
27 1
Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA REQUESTING THE BOARD OF SUPERVISORS OF SANTA

BARBARA COUNTY TO INCLUDE THE DOWNTOWN COMMUNITY

BENEFIT IMPROVEMENT DISTRICT SPECIAL ASSESSMENT ON
THE 2026-2027 PARCEL TAX ROLL
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (the "CBID Ordinance") authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (the "State Law") except to the extent the provisions of the State Law are inconsistent with the provisions of the CBID Ordinance; and
WHEREAS, on April 16, 2024, in response to a petition by property owners that satisfied the requirements of the CBID Ordinance, the City Council adopted Resolution No 24-037 ("Resolution of Intention"), declaring the intention of the City Council to establish the Downtown Community Benefit Improvement District ("District") pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District ("Assessment"); and
WHEREAS, on June 25, 2024, a public hearing was conducted in accordance with California Constitution article XIIID (Proposition 218) and applicable law and after the public hearing the City Council found and declared a majority protest against the District and the Assessment did not exist, and the City Council adopted Resolution No 24-079 forming the District and levying assessments pursuant to the CBID Ordinance.

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

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

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

3. An assessment is proposed to be levied annually against real property in the District. Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax. The rate of the proposed assessment is set forth in the Management District Plan (MDP). The total amount of the assessment for Fiscal Year 2026-27 is $1,674,583.69.

4. The City, on behalf of the District, will comply or has complied with all requirements set forth in correspondence from the Auditor-Controller including executing an agreement to place the Special Assessment Tax on the tax roll and submitting the Fixed Charge Data file in the specified format. The City Clerk or designee is hereby requested to deliver a copy of this Resolution to the County Auditor.
1 Resolution No.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA REQUESTING THE BOARD OF SUPERVISORS OF SANTA

BARBARA COUNTY TO INCLUDE THE COAST VILLAGE

COMMUNITY BENEFIT IMPROVEMENT DISTRICT SPECIAL
ASSESSMENT ON THE 2026-2027 PARCEL TAX ROLL
WHEREAS, Chapter 4.45 of the Santa Barbara Municipal Code (the "CBID Ordinance") authorizes the City Council to establish community benefit districts and to levy assessments against real property in connection with such districts; and WHEREAS, Section 4.45.030 of the CBID Ordinance provides that such districts are established and operated pursuant to the provisions of the Property and Business Improvement District Law of 1994 (Streets & Highways Code Section 36600 et seq.) (the "State Law") except to the extent the provisions of the State Law are inconsistent with the provisions of the CBID Ordinance; and
WHEREAS, on March 29, 2022 in response to a petition by property owners that satisfied the requirements of the CBID Ordinance, the City Council adopted Resolution No 22,023 (“Resolution of Intention”), declaring the intention of the City Council to establish the Coast Village Community Benefit Improvement District (“District”) pursuant to the CBID Ordinance and to levy assessments against real property in connection with the District (“Assessment”); and
WHEREAS, on June 7, 2022, a public hearing was conducted in accordance with California Constitution article XIIID (Proposition 218) and applicable law and after the public hearing the City Council found and declared a majority protest against the District and the Assessment did not exist and adopted Resolution No 22-049 forming the District and levying assessments pursuant to the CBID Ordinance.

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

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

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

3. An assessment will be levied annually against real property in the District. Except where such method of collection is not practicable, the assessment will be collected on the property tax roll at the same time, in the same manner and subject to the same lien priority and penalties for delinquent payment as the ad valorem property tax. The rate of the proposed assessment is set forth in the Management District Plan (MDP). The total amount of the assessment for Fiscal Year 2026-27 is $315,726.49.

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

CITY OF SANTA BARBARA
Council Agenda Report
Agenda Date: August 4, 2026
To: Mayor and Councilmembers
From: Finance Department
Subject: Fiscal Year 2026 Interim Financial Statements for the Eleven Months Ended May 31, 2026
Recommendation:

That Council accept the Fiscal Year 2026 Interim Financial Statements for the eleven months ended May 31, 2026.

Discussion
The Interim financial statements for the eleven months ended May 31, 2026 (92.0% of the fiscal year) are attached. The interim financial statements include budgetary activity in comparison to actual activity for the General Fund, Enterprise Funds, Internal Service Funds, and select Special Revenue Funds.

Attachments:

1. Interim Financial Statements for the Eleven Months Ended May 31, 2026.

Prepared By: Nathalie Lecolley, Controller
Submitted by: Keith DeMartini, Finance Director
Approved by: Kelly McAdoo, City Administrator
Agenda Item No. 9
## ATTACHMENT 1
Remaining
Adopted Revised YTD Encum- Balance with %of Previous
Budget Budget Actual brances Revised budget Budget YTD
GENERAL FUND (pages 3-7)
Revenue 208,664,394 209,632,984 180,946,142 - 28,686,842 86.3% 195,589,854 Expenditures 210,270,440 219,467,227 188,670,770 3,900,582 26,895,875 87.7% 208,451,012 Addition to / (use of) reserves (1,606,046) (9,834,243) (7,724,628) (3,900,582) 1,790,967 (12,861,158) MEASURE C (pages 3-7)
Included in GF summary a
Revenue 34,235,000 34,257,500 29,546,211 - 4,711,289 86.2% 29,163,668 Expenditures 35,119,802 78,790,477 24,605,037 18,061,808 36,123,632 54.2% 36,506,532 Addition to / (use of) reserves (884,802) (44,532,977) 4,941,174 (18,061,808) (31,412,343) (7,342,864) SOLID WASTE FUND (page 9)
Revenue 42,990,702 43,199,169 39,696,408 - 3,502,761 91.9% 37,034,975 Expenditures 42,373,212 45,090,718 37,221,050 2,003,837 5,865,831 87.0% 31,956,663 Addition to / (use of) reserves 617,491 (1,891,549) 2,475,358 (2,003,837) (2,363,070) 5,078,312 WATER OPERATING FUND (page 10)
Revenue 86,755,946 86,755,946 78,827,232 - 7,928,714 90.9% 73,602,074 Expenditures 89,330,512 92,363,528 72,822,651 7,143,652 12,397,225 86.6% 64,670,767 Addition to / (use of) reserves (2,574,566) (5,607,582) 6,004,580 (7,143,652) (4,468,510) 8,931,306 WASTEWATER OPERATING FUND (page 11)
Revenue 34,492,415 37,992,415 31,489,244 - 6,503,171 82.9% 29,365,047 Expenditures 37,164,550 38,506,072 31,550,700 2,089,483 4,865,888 87.4% 28,819,489 Addition to / (use of) reserves (2,672,135) (513,657) (61,456) (2,089,483) 1,637,282 545,557 DOWNTOWN PARKING FUND (page 12)
Revenue 10,239,915 10,292,475 9,494,080 - 798,395 92.2% 10,360,517 Expenditures 10,292,863 10,490,559 9,120,964 184,018 1,185,577 88.7% 10,601,189 Addition to / (use of) reserves (52,948) (198,084) 373,116 (184,018) (387,182) (240,672) AIRPORT OPERATING FUND (page 13)
Revenue 35,563,735 41,639,385 30,695,226 - 10,944,159 73.7% 30,099,895 Expenditures 41,945,246 50,271,253 38,755,200 4,736,858 6,779,195 86.5% 32,017,071 Addition to / (use of) reserves (6,381,511) (8,631,868) (8,059,974) (4,736,858) 4,164,964 (1,917,177) GOLF COURSE FUND (page 14)
Revenue 5,267,832 5,267,832 4,400,714 - 867,118 83.5% 4,451,531 Expenditures 5,741,937 6,344,110 5,157,026 - 1,187,084 81.3% 3,644,232 Addition to / (use of) reserves (474,105) (1,076,278) (756,312) - (319,966) 807,299 FACILITIES MANAGEMENT FUND (page 15)
Revenue 8,285,099 8,285,099 7,672,305 - 612,794 92.6% 6,693,031 Expenditures 7,844,685 8,705,455 6,664,810 465,856 1,574,789 81.9% 5,665,682 Addition to / (use of) reserves 440,414 (420,357) 1,007,495 (465,856) (961,995) 1,027,349

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For Eleven Months Ended May 31, 2026 (92.0% of Fiscal Year)