CITY OF SANTA CLARITA
CITY COUNCIL
REGULAR MEETING
Tuesday, April 14, 2026
6:00 PM
City Council Chambers
23920 Valencia Blvd.
Santa Clarita, CA 91355
AGENDA
Joint Meeting with
Board of Library Trustees
How to Address the City Council
Pursuant to Government Code section 54954.3 members of the public are afforded the opportunities to address the City Council. You may address the Council once per meeting during Public Participation on any matter within the Council's jurisdiction that is not listed on the agenda. Public Participation speaker's cards must be submitted to the City Clerk BEFORE this portion of the meeting begins. To address the Council regarding an item on the agenda, please fill out a speaker's card and submit it to the City Clerk BEFORE the Mayor announces the item.
Each person addressing the Council is given three minutes to speak (with double the time allotted to non-English speakers using a translator) indicated by a colored light system on the Council dais. If you wish to provide information to the Council, please present the City Clerk with 10 copies. Otherwise, your materials will simply be added to the official record. Please note use of City Council Chamber technology equipment to present electronic material during meetings is not allowed.
______________________________________________________________________________
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, (661) 255-4391. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28CFR 35.102-35.104 ADA Title II)
Pursuant to Government Code 54957.5 any writings or documents distributed to a majority of the members of the City Council regarding any open session item on this agenda will be made available for public inspection in the City Clerk’s Office located at 23920 Valencia Boulevard, Suite 120, during normal business hours. View public meeting agendas here, inclusive of all attachments and reading file material.
______________________________________________________________________________
INVOCATION
Weste
CALL TO ORDER
ROLL CALL
FLAG SALUTE
EXECUTIVE MEETING
This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting.
AWARDS AND RECOGNITIONS
Autism Acceptance Month Proclamation
National Volunteer Month Proclamation
PUBLIC PARTICIPATION
This time has been set aside for the public to address the City Council on items NOT listed on the agenda. The City Council will not act upon these items at this meeting other than to review and/or provide direction to staff. All speakers must submit a speaker’s card to the City Clerk PRIOR to the beginning of this portion of the meeting. The FIRST TEN people to submit a speaker card prior to the beginning of Public Participation will be heard.
STAFF COMMENTS
COMMITTEE REPORTS/COUNCILMEMBER COMMENTS
PUBLIC HEARINGS
1. ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
UPDATES – FIRST READING - Amendments to the Santa Clarita Municipal Code, regarding the City of Santa Clarita's accessory dwelling unit ordinance, the two-unit development ordinance, and Housing Element Policy HP-2.1.
RECOMMENDED ACTION:
City Council:
1. Conduct the public hearing.
2. Find the Accessory Dwelling Unit Ordinance and Housing Law Updates project exempt from review under the California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Section 15061(b)(3), the common-sense exemption.
3. Introduce an ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING MASTER CASE 26-011 (UDC26-001), AMENDING THE SANTA CLARITA MUNICIPAL CODE,” and pass to second reading.
NEW BUSINESS
2. INTRODUCTION OF AN ORDINANCE CONCERNING COUNCILMEMBER COMPENSATION PER GOVERNMENT CODE SECTION 36516 - City
Government Code Section 36516(a) allows regular adjustments to the City Council compensation. City Council to consider Councilmember compensation increase to be effective 2027. The last increase of Councilmember compensation was effective in 2025.
RECOMMENDED ACTION:
City Council:
1. Review and discuss City Council compensation and determine increase to be effective after the November 2026 election.
2. Introduce and pass to a second reading an ordinance entitled "AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING SECTION 2.04.048 OF THE SANTA CLARITA MUNICIPAL CODE CONCERNING CITY COUNCIL SALARY."
3. ARTS MASTER PLAN 2035: VISION AND ACTION - City Council review and consider adoption of the Arts Master Plan 2035: Vision and Action.
RECOMMENDED ACTION:
City Council receive report and adopt the Arts Master Plan 2035: Vision and Action.
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered routine and will be enacted by one motion by the City Council. The items are not individually discussed by the City Council unless a request is made by a member of the public or the Council, in which case, the item(s) will be removed from the Consent Calendar and will be considered separately.
4. APPROVAL OF SPECIAL MEETING MINUTES – The minutes of the City Council are submitted for approval.
RECOMMENDED ACTION:
City Council approve the minutes of the March 24, 2026 Special Meeting.
5. APPROVAL OF REGULAR MEETING MINUTES – The minutes of the City Council are submitted for approval.
RECOMMENDED ACTION:
City Council approve the minutes of the March 24, 2026 Regular Meeting.
6. CHECK REGISTER NO. 07 AND 08 - Check Register No. 07 for the Period 02/20/26 through 03/05/26 and 03/12/26. Electronic Funds Transfers for the Period of 02/23/26 through 03/06/26. Check Register No. 08 for the Period 03/06/26 through 03/19/26 and 03/26/26. Electronic Funds Transfers for the Period of 03/09/26 through 03/20/26.
RECOMMENDED ACTION:
City Council approve and ratify for payment the demands presented in Check Register No. 07 and 08.
7. CITY OF SANTA CLARITA'S FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY - Per California Government Code Section 53646, the City Treasurer may annually present the City's Investment Policy to the City Council to reaffirm or make any changes to the existing policy.
RECOMMENDED ACTION:
City Council adopt the City of Santa Clarita's Fiscal Year 2026-27 Statement of Investment Policy, and direct staff to submit the policy to the Association of Public Treasurers of the United States and Canada for certification in their annual award program.
8. PORTABLE DOCUMENT FORMAT ACCESSIBILITY AND REMEDIATION SOFTWARE - Authorization to implement DocAccess, a PDF remediation and accessibility software solution, to ensure City documents comply with ADA, Section 504, and WCAG standards. This initiative supports equitable public access to information while reducing legal and compliance risks associated with inaccessible digital content.
RECOMMENDED ACTION:
City Council:
1. Award a three-year contract to CivicPlus, LLC, for the use of the DocAccess PDF remediation and accessibility application, for a total contract amount not to exceed $83,965.
2. Appropriate funding from the General Fund (Fund 100) to Technology Services expenditure account 1002200-516101 in the amount of $28,000 in Fiscal Year 2026- 27, $27,300 in Fiscal Year 2027-28, and $28,665 in Fiscal Year 2028-29. Funding for future fiscal years are contingent upon the appropriations funds by the City Council in the annual budget for such fiscal year.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review.
9. WILLIAM S. HART PARK BARNYARD ANIMAL FEED EXPENDITURE AUTHORITY INCREASE - The purpose of this item is to increase expenditure authority with Fox Feed for the purchase of animal feed for the William S. Hart Park Barnyard.
RECOMMENDED ACTION:
City Council:
1. Authorize an increase in expenditure authority in the amount of $40,004 with Fox Feed for animal feed at the William S. Hart Park Barnyard, for an annual amount not to exceed $90,000.
2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
10. NEWHALL COMMUNITY CENTER PLAYGROUND RENOVATION P2027- DESIGN CONTRACT - City Council consideration of a design services contract for the Newhall Community Center Playground Renovation.
RECOMMENDED ACTION:
City Council:
1. Award a design contract to Architerra Design Group, for design services for the Newhall Community Center Playground Renovation Project, in the amount of $74,720 and authorize a contingency in the amount of $7,472 for a total contract amount not to exceed $82,192.
2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
11. PUBLIC ART DONATION: ENDANGERED FOSSILS - Consideration of accepting a donation from artist Judith Modrak for the temporary public artwork, Endangered Fossils, located at West Creek Park into the City of Santa Clarita's permanent public art collection.
RECOMMENDED ACTION:
City Council accept the donation of Judith Modrak’s artwork, Endangered Fossils, and authorize the City Manager or designee to execute a contract with Ms. Modrak, subject to City Attorney approval.
12. BUS HYDROGEN REFUELING STATION CONSULTING AND PROJECT MANAGEMENT SERVICES CONTRACT AMENDMENT - This item considers amending the existing contract with Hydrogen Technology & Energy Corporation to provide for Bus Hydrogen Refueling Station consulting and project management services.
RECOMMENDED ACTION:
City Council:
1. Amend the existing contract with Hydrogen Technology & Energy Corporation
(HTEC) for Bus Hydrogen Refueling Station consulting and project management services to increase expenditure authority in the amount of $231,684, plus a 15 percent contingency of $34,753, for a total increase of $266,437, for a total not to exceed amount of $748,847, and extend the contract term with HTEC through final acceptance of the hydrogen production and fuel station currently under construction.
2. Appropriate one-time funds in the amount of $266,437 to Transit Capital Contractual Services Expenditure Account (7003702-516101), and increase Miscellaneous Federal Grants Revenue Account (700-442409) by $266,437.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
13. TRANSIT MAINTENANCE FACILITY EV CHARGERS CONTRACT - This agenda item considers the award for the purchase and installation of three electric vehicle chargers at the Transit Maintenance Facility.
RECOMMENDED ACTION:
City Council:
1. Award a contract to Beam Global for the purchase of two EV ARC™ solar powered electric vehicle chargers for the Transit Maintenance Facility in the amount of $198,294.
2. Award a contract to ChargePoint, Inc., for the purchase of one electric vehicle charger for the Transit Maintenance Facility in the amount of $57,222.
3. Award a contract to H&S Electric, Inc., for the installation of one electric vehicle charger at the Transit Maintenance Facility in the amount of $43,000, and authorize a contingency in the amount of $4,300, for a total contract amount not to exceed $47,300.
4. Appropriate funds in the amount of $255,516 to Transit Capital Equipment Expenditure Account (7003702-520102) and $47,300 to Transit Capital Contractual Services Expenditure Account (7003702-516101), increase SB1 State of Good Repair Revenue Account (700-442414) by $257,039 and increase Miscellaneous Revenue Account (700-462101) by $45,777.
5. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
14. MV TRANSPORTATION OPERATION AND MAINTENANCE CONTRACT EXTENTION OF THE CITY'S TRANSIT SERVICE SYSTEM - City Council consideration to extend the contract between the City of Santa Clarita and MV Transportation for the operation and maintenance of the City's transit service system through June 30, 2028.
RECOMMENDED ACTION:
City Council:
1. Authorize the remaining two-year contract extension with MV Transportation, Inc., extending the contract through June 30, 2028, and authorize an increased expenditure authority in the amount of $3,190,106 for Fiscal Year 2026-27, in an annual amount not to exceed $32,056,649, and an additional four percent, or $1,282,266 for FY 2027-28, in an annual amount not to exceed $33,338,915.
2. Appropriate ongoing funds from the Transit Fund (Fund 700) starting Fiscal Year 2026-27 in the amount of $1,339,485 to Transit Local Bus Service Expenditure Account (7003700-516116); $540,222 to Transit Dial-A-Ride Service Expenditure Account (7003700-516117); $391,736 to Transit Commuter Bus Service Expenditure Account (7003700-516118); $666,891 to Transit Contract Administration Expenditure Account (7003700-516119); and $251,772 to Transit GO Transit Expenditure Account (7003700-516121).
3. Adjust the Fiscal Year 2026-27 billing rates for MV Transportation, Inc., as follows:
local and special services to $108.48 per revenue hour, Dial-A-Ride $55.80 per trip, commuter services $108.48 per revenue hour, on demand $93.69 per revenue hour, fuel $13.78 per revenue hour, and administration fee $563,503 per month, and authorize an additional four percent increase for FY 2027-28.
4. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
PUBLIC PARTICIPATION
This time has been set aside for any speakers that have turned in speaker cards and were not heard in the public participation section allotted to address the City Council on items that are NOT on the agenda. Speaker cards may not be submitted relating to any items listed on the agenda.
STAFF COMMENTS
ADJOURNMENT
In memory of Rick Patterson
FUTURE MEETINGS
The next regular meeting of the City Council will be held April 28, 2026, at 6:00 PM in the Council Chambers, 1st floor of City Hall, 23920 Valencia Blvd., Santa Clarita, CA.
CERTIFICATION
On April 9, 2026, I, Mary Cusick, do hereby certify that I am the duly appointed and qualified City Clerk for the City of Santa Clarita and that the foregoing agenda was posted at City Hall.
_____________________________
Mary Cusick
City Clerk
Santa Clarita, California
PROCLAMATION
Autism Acceptance Month
April 2026
WHEREAS, autism spectrum disorder is a developmental disability that can cause significant social, communication, and behavioral challenges and is the fastest growing developmental disorder; and
WHEREAS, in the United States, autism affects an estimated one in 36 children and one in 45 adults; and
WHEREAS, every April, the Autism Society works to build an inclusive community where autistic individuals are embraced and supported to achieve the highest quality of life possible; and
WHEREAS, the Autism Society was founded in 1965 and hosted one of its first nationwide efforts of an awareness campaign called National Autistic Children’s Week in 1972, which subsequently evolved in to Autism Awareness Month; and
WHEREAS, in 2021, Autism Awareness Month was renamed Autism Acceptance Month to foster acceptance and ignite changes. The Autism Society deeply understands the need to foster awareness and acceptance to ignite change and a healthier lifestyle through improved opportunities for people with autism; and
WHEREAS, the aims for Autism Awareness Month are to inform the general public about the potential needs of people with autism and to stress the importance of early diagnosis and early intervention, as well as the importance of providing appropriate support that continues through adulthood.
NOW, THEREFORE, the City of Santa Clarita does hereby proclaim April 2026, as Autism Acceptance Month, and will continue to create disability awareness and inclusion for all members of our community.
Signed this 14th day of April, 2026.
Laurene Weste, Mayor
Santa Clarita, California
a
Packet Pg. 9
Attachment: Autism Acceptance Month Proclamation 2026 (Letter Size) (Autism Acceptance Month Proclamation)
PROCLAMATION
National Volunteer Month
April 2026
WHEREAS, the month of April has been designated nationwide as the time to recognize the hard work, commitment, and passion of volunteers; and
WHEREAS, along with the rest of the country, we celebrate volunteers during National Volunteer Month, April 1-30, 2026; and
WHEREAS, every year, thousands of Santa Clarita volunteers accomplish significant projects and help with events in the community; and
WHEREAS, in 2025, the City of Santa Clarita had 2,707 individual volunteers, with 71 volunteers dedicating more than 100 hours throughout the year.
WHEREAS, we partner with residents, businesses, faith-based organizations, schools, and community-based organizations to make a difference and make Santa Clarita a better place to live, work, and play; and
WHEREAS, our volunteers are vital to Santa Clarita’s economic and social well-being; and
WHEREAS, the City of Santa Clarita celebrates National Volunteer Month by recognizing our valued volunteers.
NOW, THEREFORE, the City of Santa Clarita does hereby proclaim April 1-30, 2026, as National Volunteer Month, and encourage residents to recognize the positive impact of volunteerism in our community, to thank those who serve, and to find ways to volunteer and give back to our community.
Signed this 14th day of April, 2026.
Laurene Weste, Mayor
Santa Clarita, California
a
Packet Pg. 10
Attachment: 2026 Nation Volunteer Month Proclamation (Letter Size) (National Volunteer Month Proclamation)
Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING
LAW UPDATES – FIRST READING
DEPARTMENT: Community Development
PRESENTER: Andy Olson
RECOMMENDED ACTION
City Council:
1. Conduct the public hearing.
2. Find the Accessory Dwelling Unit Ordinance and Housing Law Updates project exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), the common-sense exemption.
3. Introduce an ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING MASTER CASE 26-011 (UDC26-001), AMENDING THE SANTA CLARITA MUNICIPAL CODE,” and pass to second reading.
BACKGROUND
REQUEST
Since the 2021 adoption of the Accessory Dwelling Unit (ADU) ordinance and the two-unit development ordinance in 2022, the California Legislature and Department of Housing and Community Development (HCD) have continued to expand state housing laws, further limiting the City of Santa Clarita’s (City) ability to regulate ADUs, junior ADUs (JADUs), two-unit developments, and urban lot splits. Recent updates to state law, including Government Code § 66323, require the City to approve ADUs that meet state standards, without applying additional local regulations on these ADUs, such as regulations regarding fire zones, protected oak trees, or Significant Ecological Areas (SEAs). Additionally, Government Code §§ 65852.21 and 66411.7 1 Packet Pg. 11
require ministerial approval of two-unit developments and urban lot splits. To address these changes, City staff prepared amendments to the Santa Clarita Municipal Code (SCMC) to update the City’s regulations consistent with state law and HCD’s interpretation of those laws.
The City proposes to amend the SCMC, including text amendments to Chapter 16 (Subdivisions) and Chapter 17 (Zoning) to change regulations governing: 1) accessory dwelling units (ADUs); 2) two-unit residential development (Senate Bill 9 [SB9]); and 3) implementation of Housing Element Program HP-2.1.
Accessory Dwelling Unit Regulations
California state (state) law regulates both ADUs and JADUs. Both ADUs and JADUs provide additional units on properties with proposed or existing single-family and multifamily development. The existing regulations were adopted by the City Council (“ADU ordinance”) on January 26, 2021. These ADU regulations provided local control over development standards (e.g., design, setbacks, and parking requirements) that were allowed at that time. The ordinance further limited ADUs in high-fire-severity zones for public safety and included protections for oak trees and significant ecological areas (SEAs). The following is a brief summary of the City’s ADU ordinance since its adoption by City Council:
• February 17, 2021: City submitted ordinance to HCD within 60 days of adoption, as required by state law
• March 24, 2023: HCD provided a review letter
• April 21, 2023: City replied to HCD, within a 30-day timeline • May 27, 2025: City Council adopted 2025 SCMC Updates, including minor ADU ordinance amendments in response to three state ADU bills • June 27, 2025: City submitted revised ordinance to HCD as required by law • December 10, 2025: HCD provided a review letter on both the ADU ordinance and the two-unit development ordinance
• January 7, 2026: City replied to HCD, within a 30-day timeline
Two-Unit Development Ordinance (SB9)
On September 16, 2021, the Governor signed SB9, which became effective on January 1, 2022.
As a result, the City must ministerially (i.e., the City does not have discretion) approve two-unit residential developments on parcels zoned for a single-family unit, and must ministerially approve parcel maps for lot splits on parcels zoned for single-family uses (urban lot splits), subject to qualifying criteria.
On January 25, 2022, the City Council adopted Ordinance No. 22-2, implementing development standards into the SCMC to regulate the two-unit residential developments and urban lot splits required by SB9. This ordinance was not submitted to HCD because state law did not require it.
However, the review letter HCD sent to the City in December 2025, included comments on the City’s SB9 ordinance in addition to the ADU ordinance. As a result, the City must propose revisions to these regulations. The proposed amendments would address HCD’s review letter related to the implementation of SB9 and ensure these units are permitted in compliance with state law and HCD’s comments.
1 Packet Pg. 12
Housing Element Program HP-2.1
The City’s 6th Cycle Housing Element was originally adopted by the City Council on May 10, 2022. City staff went through multiple rounds of review with HCD, receiving comments from HCD on July 7, 2022, and February 14, 2023. The final Housing Element was adopted by the City Council on June 27, 2023, and certified by HCD on August 22, 2023. There are a number of programs in the Housing Element aimed at implementing the goals and policies established in the Housing Element. This includes Program HP-2.1: Zoning Code Changes for Consistency with State Law. This program intends to update the SCMC to incorporate current state law related to a variety of housing-related uses. This includes compliance with legislation regarding transitional housing, supportive housing, emergency shelters, low-barrier navigation centers, and employee and agricultural worker housing, as well as updating the City’s ADU ordinance in accordance with state law. The proposed amendments would ensure these housing types are permitted in conformance with state requirements.
PLANNING COMMISSION ACTION
On March 17, 2026, the City’s Planning Commission held a public hearing on the proposed amendments at its regularly scheduled meeting. The Planning Commission voted 3-2 to adopt Resolution No. P26-02, recommending that the City Council adopt an ordinance to codify the proposed amendments. A copy of the Planning Commission’s staff report is available in the City Clerk’s reading file.
PROJECT DESCRIPTION
The proposed project would update the SCMC with amendments to the City’s ADU ordinance and SB9 ordinance, as well as zoning updates to implement Housing Element Program HP-2.1.
The proposed amendments were prepared by City staff in coordination with the City Attorney’s Office, and consist of text amendments only; no changes to the City’s zoning map, land use designations, or development densities are proposed. No construction or development is proposed as part of the project.
Accessory Dwelling Unit Ordinance
As described above, the City’s original ADU ordinance was prepared to provide for maximum local control as permitted by state law at the time of adoption. State law has continued to evolve, and today, adoption of a local ADU ordinance no longer provides the same local control benefits that previously existed. State legislation regarding ADUs continues to change on a yearly basis, and the proposed amendments will keep the City’s code compliant and not in conflict with state law.
The proposed amendments to the ADU regulations implement the Legislature’s mandate that requires the City to approve ADUs that meet the requirements of state law, including Government Code § 66323. These “state-mandated” or “state-exempt” ADUs must be allowed under state law regardless of: (1) whether the City implements an ADU ordinance, and (2) any development or design standard adopted by the City. These mandatory ADUs include:
1 Packet Pg. 13
• On a single-family property:
o A conversion ADU within the existing home or accessory structure o A JADU within the existing home or accessory structure o A detached ADU, up to 800 square feet, and with four-foot side and rear setbacks • On a multifamily property:
o Conversion of ADUs within existing non-livable space (e.g., attics, garages). This includes at least one ADU and up to 25 percent of the number of units on-site o Detached ADUs (up to eight ADUs for an existing multifamily development, not to exceed the number of units on-site, and up to two ADUs for a proposed multifamily development)
These ADUs are largely exempt from local development standards. As discussed, the City will no longer be able to restrict ADUs and JADUs in High Fire Zones, or based on the oak tree preservation ordinance, or proximity to an SEA. Residents would continue to be responsible for any impacts to protected species regardless of any ADU or JADU regulations.
As of the writing of this staff report, however, the City remains able to impose development impact fees on some ADUs. In addition, the City is required by state law to prohibit short-term rental of ADUs and JADUs. The proposed ordinance implements all of the mandates imposed on the City by state law and responds to HCD’s comments.
Two-Unit Development Ordinance
The proposed amendments addressing SB9, similarly to the ADU amendments described above, would align the SCMC standards with state law, including, without limitation, Government Code §§ 65852.21 and 66411.7. Senate Bill 9 mandates that the City must ministerially approve two residential units on a single-family lot. The proposed amendments are necessary to implement this existing state mandate. Under the proposed amendments, the only standards the City can apply are the objective development standards of the underlying zone (such as setbacks, height limits, and lot coverage), unless state law provides an exemption. The City would no longer be able to regulate these types of developments based on standards such as High Fire Zones or based on the oak tree preservation ordinance.
Senate Bill 9 also mandates that the City approve urban lot splits. The proposed amendments would also repeal SCMC Chapter 16.28, which currently contains the City’s subdivision requirements for urban lot splits. As permitted by state law, urban lot splits would be required to comply with the objective parcel map standards in Title 16 of the SCMC, the same standards that apply to a typical Tentative Parcel Map application.
Housing Element Program HP-2.1
Housing Element Program HP-2.1 aims to implement SCMC amendments to ensure that the City’s zoning code remains consistent with state housing law. The City is already implementing these items as mandated by state law, and HCD requires the City to codify these housing-related changes. The proposed amendments address the following items from Program HP-2.1:
1 Packet Pg. 14
• Transitional housing
• Supportive housing
• Emergency shelters
• Low barrier navigation centers
• Employee and agricultural worker housing
• ADUs
• Group homes
Implementation of Program HP-2.1 would be primarily achieved through proposed amendments to the Residential Use Charts (SCMC Chapter 17.43) and the Homeless Shelter Development standards (SCMC § 17.66.070). This includes the creation of a new permitted use chart category identified as “State-Designated Housing Use Types.” This chart would reference applicable state legislation for these use categories. These housing types are regulated by state law, which limits the City’s ability to enforce local regulations and standards.
The proposed amendments also include a minor strikethrough to residential service/care homes (group homes) to remove the limitation on the number of residents for these uses. Under state law, the City cannot restrict the number of residents in these facilities; Residential Service/Care Homes are licensed and regulated by the state and subject to state regulations on the number of residents. The proposed amendments ensure the City permits these uses in compliance with state law and will remain compliant as state regulations change in the future.
The proposed amendments to the Homeless Shelter development standards ensure that development criteria are objective and are in compliance with state regulations for these uses.
ENVIRONMENTAL
A draft Notice of Exemption was prepared for the proposed project. The project is exempt from additional environmental review pursuant to CEQA Guidelines (14 Cal. Code of Regs. § 15000, et seq.) § 15061(b)(3), the common-sense exemption. The activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
NOTICING
All notices required by law were completed, which consisted of a one-eighth page legal advertisement in The Signal newspaper on March 24, 2026. As of the writing of this staff report, City staff has received no correspondence from the community on this item.
CONCLUSION
As described above, the proposed amendments are necessary to update the SCMC in accordance with current state law; to address HCD’s review letter regarding ADUs and SB9 developments; and to implement Program HP-2.1 of the City’s Housing Element. City Council action is required to approve amendments to the SCMC.
1 Packet Pg. 15
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Public Notice
Ordinance
Proposed SCMC Amendments - Clean Version
2023 and 2025 HCD Review Letters and City Responses
Housing Element Program HP-2.1
Notice of Exemption
Planning Commission Agenda Packet (available in the City Clerk's reading file) 1 Packet Pg. 16
CITY OF SANTA CLARITA
COMMUNITY DEVELOPMENT DEPARTMENT
23920 Valencia Boulevard, Suite 302
Santa Clarita, CA 91355
NOTICE OF PUBLIC HEARING
APPLICATION: Master Case 26-011: Unified Development Code Amendment 26-001
PROJECT LOCATION: Citywide
PROJECT APPLICANT: City of Santa Clarita
PROJECT DESCRIPTION: The City of Santa Clarita (City) is requesting amendments to Title s 16 and 17 of the Santa Clarita Municipal Code, commonly referred to as the Unified Development Code (UDC), to address State housing legislation. The proposed amendment s include amendments to the City’s Accessory Dwelling Unit (ADU) Ordinance, amendments to the City’s two- unit development (also known as SB9) ordinance, and amendments to implement Housing Element Policy HP-2.1.
PLANNING COMMISSION ACTION: On March 17, 2 026, the Planning Commission voted 3- 2 to recommend that the City Council approve the proposed amendments. Therefore, t he City Council will conduct a public hearing on this matter on the following date:
DATE: Tuesday, April 14, 2026
TIME: At or after 6:00 p.m.
LOCATION: City Hall, Council Chambers
23920 Valencia Blvd., First Floor
Santa Clarita, CA 91355
A NOTICE OF EXEMPTION was prepared for the proposed project. The project is exempt from the California Environmental Quality Act (CEQA) under Article 5 Section 15061(b)(3), the common -sense exemption. The activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
If you wish to challenge the action taken on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearings described in this notice, or written correspondence delivered to the City of Santa Clarita at, or prior to, the public hearings.
For further information regarding this proposal, you may contact the project planner by appointment at the City of Santa Clarita, Permit Center, 23920 Valencia Blvd., Suite 140, Santa Clarita, CA 91355. Telephone:
(661) 255- 4330. Website: www.santaclarita.gov/planning . Send written correspondence via email to [email protected], or by US mail to: 23920 Valencia Blvd., Suite 302, Santa Clarita, CA 91355.
Project Planner: Andy Olson, Associate Planner.
Mary Cusick, MMC
City Clerk
Published: The Signal, March 24, 2026
1.a
Packet Pg. 17
Attachment: Public Notice (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
ORDINANCE NO. 26-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING MASTER CASE 26-011 (UDC26-001), AMENDING THE
SANTA CLARITA MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. FINDINGS OF FACT FOR MASTER CASE 26-011. The City Council makes the following findings of fact:
A. The City periodically updates the Santa Clarita Municipal Code (SCMC), including the subdivision regulations (Title 16) and zoning regulations (Title 17).
B. The City Council adopted the City’s accessory dwelling unit (ADU) ordinance on January 26, 2021. The ordinance was submitted to the California Department of Housing and Community Development (HCD), which provided a review letter in March 2023.
The City responded in April 2023, and HCD’s next review letter was provided in December 2025.
C. The City Council adopted the City’s two-unit development (Senate Bill 9 [SB9]) ordinance on January 25, 2022. HCD provided comments on the ordinance in its December 2025 review letter.
D. The City Council adopted the 6th Cycle Housing Element on June 27, 2023, and HCD certified the Housing Element on August 22, 2023. The Housing Element included Program HP-2.1: Zoning Code Changes for Consistency with state law.
E. The City seeks to amend the SCMC to implement HCD’s recommendations regarding regulating ADUs, two-unit developments, and the City’s adopted Housing Element (Project).
F. The Project was duly noticed for a public hearing before the Planning Commission in accordance with the public hearing noticing requirements of the SCMC, and a one-eighth page advertisement was placed in The Signal Newspaper on February 24, 2026.
G. The City reviewed the Project’s environmental impacts pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code §§ 21000, et seq.) and the CEQA Guidelines (14 California Code of Regulations §§15000, et seq.; collectively, “CEQA”).
H. The Planning Commission held a duly noticed public hearing on the project commencing on March 17, 2026, at 6:00 p.m., or later, at City Hall, 23920 Valencia Boulevard, Santa Clarita, California.
1.b
Packet Pg. 18
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
I. At the public hearing, the Planning Commission considered the entire administrative record, including, without limitation, the staff presentation, staff report, and public testimony. At the close of the public hearing, the Planning Commission in a 3-2 vote, recommended the City Council approve Master Case 26-011 and its associated entitlements, as shown in attached Exhibits A and B, which are incorporated by reference.
J. The Project was duly noticed in accordance with the public hearing noticing requirements of the SCMC, and a one-eighth page advertisement was placed in The Signal Newspaper on March 24, 2026.
K. The City Council held a duly noticed hearing on Master Case 26-011 on April 14, 2026.
This ordinance, and its findings, are made based upon the evidence presented to the City Council at its April 14, 2026, hearing including, without limitation, the staff report submitted by the Community Development Director.
SECTION 2. ENVIRONMENTAL ASSESSMENT OF MASTER CASE 26-011. Based upon the foregoing facts and findings, the City Council finds as follows:
A. A Notice of Exemption for this project was prepared in compliance with the CEQA.
B. The Project is exempt from CEQA under CEQA Guidelines § 15061(b)(3), the common sense exemption. The activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
C. The documents and other materials that constitute the record of proceedings upon which the decision of the City Council is based is the Master Case 26-011 project file and that this project file is located within the Community Development Department and is in the custody of the Director of Community Development.
D. Based upon the findings set forth above, the City Council finds the Project to be categorically exempt from additional environmental review and that the Director prepared the Notice of Exemption for this Project in compliance with CEQA.
SECTION 3. GENERAL FINDINGS FOR MASTER CASE 26-011. Based on the foregoing facts and findings for Master Case 26-011, the City Council determines as follows:
A. That the proposal is consistent with the General Plan;
The proposed amendments themselves do not include any new development. Adoption of the proposed amendments will implement California law, including, without limitation, ADU and SB9 legislation, and will further implement the City’s Housing Element.
Specifically, the amendments are consistent with the following Land Use and Planning
1.b
Packet Pg. 19
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
objectives and policies:
Objective LU 3.1: Provide for a diversity of housing types available to provide safe and suitable homes for all economic levels, household sizes, age groups and special needs groups within the community.
Policy LU 3.1.1: On the Land Use Map, designate adequate land for residential use at various densities to provide a mix of housing opportunities for all segments of the population, including attached, detached, senior, and mixed-use housing types, which are consistent with community character and meet the region’s housing goals.
Policy LU 3.1.2: Provide a mix of housing types within neighborhoods that accommodate households with varied income levels.
Policy LU 3.1.5: Promote development of housing that is affordable to residents, including households with incomes in the very low, low, and moderate income classifications, through provision of adequate sites on the Land Use Map, allowance for density bonuses and other development incentives.
The proposed amendments are consistent with the objectives and policies listed above.
Two-unit developments and ADUs provide diversity in the local housing stock, increasing the number of homes available. In addition, the proposed amendments are necessary to comply with changes to California legislation since the time the City’s ADU and SB9 ordinances were adopted.
The proposed amendments also would implement several provisions within Housing Element Program HP-2.1. This includes addressing changes to California law regarding transitional housing, supportive housing, emergency shelters, low barrier navigation centers, employee and agricultural worker housing, ADUs, and group homes.
B. The proposal is allowed within the applicable underlying zone and complies with all other applicable provisions of the Unified Development Code (UDC);
The proposed amendments do not require a consistency finding with the existing code because the project would amend the SCMC in general. While no consistency finding is required, the proposed amendments would not change development densities or the City’s zoning map; the proposed amendments implement and memorialize existing state legislation that applies to development in the City today, bringing the SCMC into consistency with California law.
C. The proposal will not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare, or be materially detrimental or injurious to the improvements, persons, property, or uses in the vicinity and zone in which the property is located; and
1.b
Packet Pg. 20
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
The proposed amendments are necessary to implement the requirements of California regulations, and would bring the SCMC into compliance with state law.
D. The proposal is physically suitable for the site. The factors related to the proposal’s physical suitability for the site shall include, but are not limited to, the following:
1. The design, location, shape, size, and operating characteristics are suitable for the proposed use;
2. The highways or streets that provide access to the site are of sufficient width and are improved as necessary to carry the kind and quantity of traffic such proposal would generate;
3. Public protection services (e.g. Fire protection, Sheriff protection, etc.) are readily available; and
4. The provision of utilities (e.g. potable water, schools. Solid waste collection and disposal, storm drainage, wastewater collection, treatment, and disposal, etc.) is adequate to serve the site.
The proposed amendments do not include development of any specific site, and would amend the SCMC in general. Development of ADUs, two-unit developments, and other residential-related uses described in the amendments would be developed in compliance with California law and would be regulated by the City to maximum extent feasible. The City currently receives service from the Consolidated Fire Protection District of Los Angeles County and the Los Angeles County Sheriff’s Department. The City is likewise served by all applicable utilities. Nothing in the proposed amendments would increase the need for fire or police protection services, or increase demand for utilities.
SECTION 4. ADDITIONAL FINDINGS FOR UDC26-001. Based upon the foregoing facts and findings for Master Case 26-011, including UDC26-001, the City Council finds as follows:
A. The amendments are consistent with the adjacent area, if applicable;
The proposed amendments would apply to properties throughout the City and are consistent with the principles of the General Plan as described above. No new development is included with the proposed amendments.
B. The amendments are consistent with the principles of the General Plan;
The proposed amendments would not alter the General Plan Land Use Map or Zoning Map, nor would the proposed amendments change development densities or population projections for the City. The proposed amendments reflect the requirements of current state legislation as well as implementation of the City’s Housing Element.
1.b
Packet Pg. 21
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
C. Approval of the amendments will be in the interest of public health, convenience, safety, and general welfare and in conformity with good zoning practice;
The proposed amendments are necessary to implement the requirements of California regulations, and would bring the SCMC into compliance with state law. The City would continue to regulate these uses and development types to the extent permitted under California law, including, without limitation, issuance of building permits and conduction of building inspections.
D. The amendments are consistent with other applicable provisions of this code; and
The proposed text amendments to the SCMC were drafted to be consistent with all other provisions of the SCMC.
E. Is necessary to implement the General Plan and/or that the public convenience, the general welfare or good zoning practice justifies such action.
The proposed amendments are required to implement Program HP-2.1 and to address current state legislation regarding ADUs and SB9. Therefore, the amendments would promote the general welfare and public convenience and would constitute good zoning practice.
SECTION 5: DETERMINATION; APPROVALS. The City Council approves Master Case 26-011, consisting of the proposed SCMC amendments as described above and set forth in attached Exhibits A and B, which are incorporated by reference.
SECTION 6: RELIANCE ON RECORD. Each and every one of the findings and determinations in this ordinance are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.
SECTION 7: SUMMARIES OF INFORMATION. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
SECTION 8. This ordinance becomes effective 30 days after its passage and adoption.
SECTION 9. The City Clerk will certify to the passage of this ordinance and cause it to be published as required by law.
1.b
Packet Pg. 22
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
PASSED, APPROVED, AND ADOPTED this ___th day of ______, 2026.
______________________________
MAYOR
ATTEST:
CITY CLERK
DATE:________________________
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 26- ___was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the __th day of _______ 2026. That thereafter, said ordinance was duly passed and adopted at a regular meeting of the City Council on the __th day of _____2026, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance No. 26- and was published in The Signal newspaper in accordance with State Law (G.C. 40806).
______________________________
CITY CLERK
1.b
Packet Pg. 23
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
1 Exhibit A
16.28 Urban Lot Split Subdivision Requirements
This section is repealed.
17.11.020 Definitions.
“Accessory dwelling unit (ADU)” is defined pursuant to California law as may be amended from time to time, including without limitation, Government Code Section 66323means “an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An ADU also includes an efficiency unit as defined in Section 17958.1 of the Health and Safety Code and may include manufactured homes as defined in Section 18007 of the Health and Safety Code,” as defined in Government Code Section 65852.2, and as may be later amended. ADUs are incentivized to qualify as affordable housing units as described in Section 17.57.040(L)(4). “Junior accessory dwelling unit (JADU)” is defined pursuant to California law as may be amended from time to time, including without limitation, Government Code Section 66323.means an accessory dwelling unit “that is no more than 500 square feet in size and contained entirely within a single-family residence,” which “may include separate sanitation facilities, or may share sanitation facilities with the existing structure,” and which includes an efficiency kitchen, which shall include “a cooking facility with appliances” and “a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit,” as defined in Government Code Section 65852.22, and as may be later amended.
17.22.090 Accessory Dwelling Unit Permit.
The Class I application ministerial process shall apply to accessory dwelling units and junior accessory dwelling units. Accessory dwelling units shall be permitted subject to the requirements of Section 17.57.040(L), Accessory Dwelling Units, and all other relevant sections of this code. Accessory dwelling units shall also comply with all State of California requirements, including California Government Code Sections 65852.2 and 65852.22. (Ord. 21-1 § 6 (Exh. A), 1/26/21)
17.35 Mixed Use Zones
17.35.010 Mixed Use Corridor (MXC) Zone. Subsection (B)
1.b
Packet Pg. 24
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
2 Residential Use Types
1. Accessory Dwelling Unit P
21. Caretaker’s Residence P
32. Community Care Facility C
43. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
54. Family Day Care Homes P
65. Home-Based Cottage Food Operation AP
76. Home Occupation Business P
78. Joint Living/Working Quarters M
98. Model Homes T
910. Residential Health Care Facility C
101. Residential Service/Care Home C
12. Supportive Housing C
13. Transitional Housing C
17.35.020 Mixed Use Neighborhood (MXN) Zone. Subsection (B) Residential Use Types
1. Accessory Dwelling Unit P
1.2. Caretaker’s Residence P
2.3. Community Care Facility C
3.4. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
4.5. Family Day Care Homes P
5.6. Home-Based Cottage Food Operation AP
6.7. Home Occupation Business P
7.8. Joint Living/Working Quarters M
8.9. Model Homes T
9.10. Residential Health Care Facility C
1.b
Packet Pg. 25
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
3 Residential Use Types
10.11. Residential Service/Care Home C
12. Supportive Housing C
13. Transitional Housing C
17.35.030 Mixed Use Urban Village (MXUV) Zone. Subsection (B) Residential Use Types
1. Accessory Dwelling Unit P
1.2. Caretaker’s Residence P
2.3. Community Care Facility C
3.4. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
4.5. Family Day Care Homes P
5.6. Home-Based Cottage Food Operation AP
6.7. Home Occupation Business P
7.8. Joint Living/Working Quarters M
8.9. Model Homes T
9.10. Residential Health Care Facility C
10.11. Residential Service/Care Home C
12. Supportive Housing C
13. Transitional Housing C
17.36 Open Space Zones
17.36.010 Open Space (OS) Zone. Subsection (B)
Residential Use Types
1. Accessory Dwelling Unit P
12. Caretaker’s Residence P
23. Dwelling—Single-Family P
1.b
Packet Pg. 26
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
4 Residential Use Types
34. Home-Based Cottage Food Operation AP
45. Home Occupation Business P
56. Family Day Care Homes—Adult P
67. Family Day Care Homes—Family P
78. Residential Service/Care Home P
9. Supportive Housing P
10. Transitional Housing P
17.36.020 Open Space—Agriculture (OS-A) Zone. Subsection (B) Residential Use Types
1. Accessory Dwelling Unit P
1.2. Caretaker’s Residence P
2.3. Dwelling—Single-Family P
3.4. Home-Based Cottage Food Operation AP
4.5. Home Occupation Business P
5.6. Family Day Care Homes—Adult P
6.7. Family Day Care—Family P
7.8. Residential Service/Care Home P
9. Supportive Housing P
10. Transitional Housing P
17.36.030 Open Space—National Forest (OS-NF) Zone. Subsection (B) Residential Use Types
1. Accessory Dwelling Unit P
2. Caretaker’s Residence P
3. Dwelling—Single-Family P
4. Family Day Care Homes—Adult P
5. Family Day Care Homes—Family P
6. Residential Service/Care Home P
1.b
Packet Pg. 27
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
5 Residential Use Types
7. Supportive Housing P
8. Transitional Housing P
17.36.040 Open Space—Bureau of Land Management (OS-BLM) Zone.
Subsection (B)
Residential Use Types
1. Accessory Dwelling Unit P
1.2. Caretaker’s Residence P
2.3. Dwelling—Single-Family P
3.4. Family Day Care Homes—Adult P
4.5. Family Day Care Homes—Family P
5.6. Residential Service/Care Home P
7. Supportive Housing P
8. Transitional Housing P
17.37.020 Public/Institutional (PI) Zone
Residential Use Types
1. Accessory Dwelling Unit P
2. Caretaker’s Residence P
3. Dwelling—Single-Family P
4. Family Day Care Homes—Adult P
5. Family Day Care—Family P
6. Fraternity/Sorority Houses C
7. Residential Service/Care Home P
8. Supportive Housing P
9. Transitional Housing P
17.38.050 MU – Mixed Use Overlay Zone Subsection (E)
1.b
Packet Pg. 28
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
6 Residential Use Types
1. Accessory Dwelling Unit P
2. Caretaker’s Residence P
3. Community Care Facility C
4. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
5. Family Day Care Homes P
6. Home-Based Cottage Food Operation AP
7. Home Occupation Business P
8. Joint Living/Working Quarters M
9. Model Homes M
10. Residential Health Care Facility C
11. Residential Service/Care Home C
12. Supportive Housing C
13. Transitional Housing C
17.42.010 Residential Use Types.
1. Accessory Dwelling Unit Parking
An attached or a detached residential dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated (refer to Government Code Section 65852.2). An ADU also includes an efficiency unit as defined in Section 17958.1 of the Health and Safety Code and may include manufactured homes as defined in Section 18007 of the Health and Safety Code. For zoning purposes, an accessory dwelling unit, whether attached or detached, shall not be considered to exceed the allowed density on a lot, and shall be in accordance with Chapter 17.57 (Property Development Standards—Residential). Residential parcels that contain accessory dwelling units shall be subject to subsection (14) of this section (Rooming House) and Chapter 23.50 (Residential High Occupancy Licensing and Registration). 1 space per unit or
bedroom, whichever is less,
in addition to required
parking for the primary
dwelling unit.
Notwithstanding the above,
per State law, no parking
space is required for an
accessory dwelling unit if
(a) the accessory dwelling
unit is within 1/2 mile
walking distance of public
transit; (b) the accessory
dwelling unit is entirely
within the proposed or
existing primary residence
1.b
Packet Pg. 29
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
7 or accessory structure; (c)
the accessory dwelling unit
has no bedrooms; (d) when
on-street parking permits
are required but not
offered to the accessory
dwelling unit; or (e) where
there is a car share vehicle
located within 1 block of
the accessory dwelling unit.
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P X X X X X
21. Caretaker’s Residence Parking
Includes permanent or temporary housing that is secondary or accessory to the primary nonresidential use on the same property. Caretaker’s housing shall be used exclusively for occupancy by a caretaker for security or monitoring of the primary use. Caretaker’s residences shall comply with the parking standards for single-family residential uses.
2 fully enclosed spaces;
spaces may be tandem
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P P P P P P
32. Community Care Facility Parking
Includes any residential facility which is planned, designed and managed to include facilities and common areas that maximize the residents’ potential for independent living. The facility may be occupied by elderly or disabled persons or households as defined in the Health and Safety Code. Direct services that may be provided include those relating to nutritional, social, recreational, housekeeping and personal needs of the residents.
0.5 spaces per unit; plus
guest parking at 1 space
per each 8 units
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X C C C C C C X X
43. Dwelling Parking
Includes a building or portion of a building with a single room or group of internally connected rooms that is designed exclusively for the long-term habitation of a family and contains facilities for sleeping, eating, sanitation and a kitchen.
a. Single-Family—a detached building designed exclusively for occupancy by a single family.
2 fully enclosed
spaces
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P X X X X X
b. Two (2) Family—includes a duplex, or other building designed for occupancy by two (2) families living independently of each other, which may be owned individually or by a single landlord.
2 fully enclosed
spaces per unit
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
1.b
Packet Pg. 30
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
8 43. Dwelling Parking
X X X X X X X P P P X X X X X
c. Multifamily—includes a building designed and intended for occupancy by three (3) or more families living independently of each other, each in a separate dwelling unit, which may be owned individually or by a single landlord. Includes apartments, townhomes, row houses, triplexes, and fourplexes. Accessible parking stalls shall be required in accordance with the Building Code.
(1) Studio—1
enclosed parking
space per unit
(2) One bedroom—2
enclosed parking
spaces per unit
(3) Two bedroom—2
enclosed parking
spaces per unit
(4) Guest parking—1
parking space per
each two units (for
complexes with more
than 3 units)
(5) For senior/age
restricted
developments, one
parking space per
each two units, plus
required guest
parking
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X P P P M1, 2 C2 C2 X X
1Notwithstanding the above, a multifamily project that includes at least twenty percent (20%) of total project units as affordable to lower income households shall be permitted without need for use permit on any of the following parcels: 2861-058-072, 2861-058-073, 2861-058-074, 2861-058-075, 2861-058-076, 2861-058-077, 2861-058-079, 2861-058-080, 2861-058-081, 2861-058-082, 2861-058-083, 2861-058-084, 2861-058-085, and 2861-058-071.
2Projects subject to and compliant with all requirements of Government Code Section 65913.4 are permitted without a conditional use permit or any other nonlegislative discretionary approval.
54. Family Day Care Homes Parking
Includes a private single-family dwelling where nonmedical care and protection are provided to individuals for periods less than twenty-four (24) hours.
a. Adult—up to six (6) adults.
b. Family—up to fourteen (14) children. Family day care homes shall be licensed by the State and consistent with Section 1597.30 of the Health and Safety Code.
2 fully enclosed spaces
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P P P X X X
1.b
Packet Pg. 31
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
9 65. Fraternity and Sorority Houses Parking
Includes buildings containing sleeping rooms, bathrooms, common rooms and a central kitchen and dining room maintained exclusively for fraternity/sorority members and their guests or visitors and affiliated with an institution of higher learning.
0.75 spaces per bed
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X C C C X X X X X
76. Home-Based Cottage Food Operation Parking
Includes an enterprise which produces and sells cottage food products in the home kitchen of a primary residential dwelling unit. A cottage food operation shall be considered an accessory use and shall not operate as a food facility or wholesale food manufacturer. Home-based cottage food operations shall be in accordance with Section 17.66.025 (Cottage Food Operations).
No additional parking
required
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
AP AP AP AP AP AP AP AP AP AP AP AP AP X X
87. Home Occupation Businesses Parking
Includes office businesses which are incidental and accessory to a residential use and do not include the storage of materials of any kind or product manufacturing of any kind. Home occupation businesses shall be in accordance with Chapter 17.65 (Home Occupations).
No additional parking
required
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P P P X X X
98. Joint Living and Working Quarters (Live/Work Units) Parking Includes a dwelling occupying a building designed for commercial or industrial occupancy and includes adequate working space reserved for, and regularly used by, one or more persons residing therein. Joint living and working quarters shall be in accordance with Section 17.66.080 (Joint Living and Working Quarters).
2 fully enclosed spaces for
residential use, plus
parking for commercial use
as per the parking
requirements contained in
this code
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X C C C M C C C C
109. Model Homes Parking
Includes dwellings initially constructed for the purposes of displaying the different housing models offered for sale within a residential development.
Model homes shall be developed in accordance with Section 17.67.030(C) (temporary uses).
3 spaces per model
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
T T T T T T T T T T T T T X X
1.b
Packet Pg. 32
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
10 1110. Mobilehome Park Parking
Includes sites containing spaces with the required improvements and utilities that are leased for the long-term placement of mobile or manufactured homes and may include services and facilities for residents. 2 spaces per unit; spaces
may be tandem; plus 1
space per 2 units for guest
parking
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
C C C C C C C C C C X C X X X
1112. Residential Health Care Facility Parking
Includes residential facilities usually occupied by the elderly that provide rooms, meals, personal care and health monitoring services under the supervision of a professional nurse or other professional health care provider and that may provide other services, such as recreation, social and cultural activities, financial services and transportation. Typical uses include convalescent homes.
0.5 spaces for each unit
and/or bed
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X M M M C C C C X
1312. Residential Service/Care Home Parking
Includes a private single-family residence where twenty-four (24) hour care, nonmedical services, supervision, treatment or assistance essential for sustaining the activities of daily living to six (6) or fewer persons is provided.
Residential service/care home shall be consistent with Section 1500 et seq. of the Health and Safety Code and any other applicable State law. 2 fully enclosed spaces
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P X X X X X
1413. Rooming House Parking
Means a dwelling unit (other than a hotel or motel) where three (3) or more rooms are rented individually or separately to tenants under separate rental agreements where tenants do not share common financial responsibility for use of the dwelling unit as a whole. Rent may be paid in money, goods, labor, or otherwise. Rental agreements may be written or oral. Housing protected by Federal or State law, including housing for persons protected under the Fair Housing Act (42 U.S.C. Section 3604(F)) and the California Fair Housing Act (California Government Code Section 12920 et seq.), or housing otherwise subject to treatment as a single-family dwelling unit by the provisions of State law shall not constitute a rooming house.
2 fully enclosed stalls;
plus one parking stall for
each resident 18 years or
older
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X P* P* P* X X X X X
*Rooming houses are not permitted in neighborhoods that are comprised predominantly of single-family detached residential units.
1.b
Packet Pg. 33
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
11 1514. Supportive Commercial Uses Serving the Local Area Parking Supportive commercial uses serving the local area, such as grocery stores, restaurants, personal services, and retail sale of specialty goods, may be permitted in a proposed development project, new establishment, or conversion of a residence; provided, that the size, location, design, and use types are determined to be compatible with the surrounding area. Such supportive commercial uses in the NU4 and NU5 zones shall be located in activity areas, must be at least one (1) mile from any commercial land use designation, and must not exceed five (5) acres in size. A change in use in an established activity area shall be subject to the required entitlement for such use in the CN zone. However, a permitted use in the CN zone shall require a MUP.
Parking as determined by
the Director
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
M M M M M M M M M M X X X X X
16. Supportive Housing Parking
Includes housing with no limits on length of stay that is linked to on-site or off- site services that assist a resident in retaining housing, improving his/her health conditions and maximizing his or her ability to live and, when possible, work in the community.
1 space for each staff
member; plus 1 space for
each resident using a
motor vehicle
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P C C X X X
17. Transitional Housing Parking
Includes buildings configured as a rental housing development but operated under program requirements. Upon termination of assistance, the unit shall be recirculated as an assisted unit to another eligible program recipient at some predetermined point in time where length of stays shall be no less than six (6) months and no more than two (2) years.
1 space for each resident
over 18 years of age
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P C C X X X
17.42.020 State-Designated Housing Use Types
A. The following residential use types are defined or governed by state law in all zones.
1. Accessory Dwelling Unit
Accessory Dwelling Units and Junior Accessory Dwelling Units are permitted pursuant to California law as may be amended from time to time, including without limitation, Government Code Section 66323.
2. Employee and Agricultural Worker Housing
Employee housing serving six or fewer employees and agricultural employee housing consisting of not more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or
1.b
Packet Pg. 34
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
12 household are permitted pursuant to California law, as may be amended from time to time, including, without limitation, Health and Safety Code Sections 17021.5 and 17021.6.
3. Low-Barrier Navigation Centers
Low Barrier Navigation Centers are reviewed and ministerially permitted pursuant to California law as may be amended from time to time, including without limitation, Government Code Sections 65662, et. seq.
4. Supportive Housing
Supportive Housing is permitted pursuant to California law, as may be amended from time to time, including without limitation, Government Code Section 65583. Supportive Housing includes housing with no limits on length of stay that is linked to on-site or off-site services that assist a resident in retaining housing, improving his/her health conditions and maximizing his or her ability to live and, when possible, work in the community.
5. Transitional Housing
Transitional Housing is permitted pursuant to California law, as may be amended from time to time, subject to only those restrictions that apply to other residential dwellings of the same type in the same zone. Transitional Housing includes buildings configured as a rental housing development but operated under program requirements. Upon termination of assistance, the unit shall be recirculated as an assisted unit to another eligible program recipient at some predetermined point in time where length of stays shall be no less than six (6) months and no more than two (2) years.
17.51.030 Landscaping and Irrigation Standards. Subsection (C)(6)(a)(vii)
vii. Accessory Dwelling Unit. If an accessory dwelling unit is located along a street frontage, one (1) twenty-four (24) inch box tree shall be planted in the front or corner yard setback of the unit. If the new unit is located off of a street frontage, this requirement shall be waived at the discretion of the Director.
17.57.020 Residential Development Standards
H. Modifications of Garages. Conversions of existing required garages into habitable space are permitted only following the issuance of a certificate of occupancy for a new garage consistent with the residential parking requirements, except as otherwise provided by California Law, including, without limitation, Government Code 66323. Modifications are not permitted which reduce the interior dimensions to less than twenty (20) feet by twenty (20) feet for two (2) car garages, or two (2) ten (10) foot by twenty (20) foot garages in the case of single car garages.
Clear entry must be provided for all garages at a minimum of sixteen (16) feet for two (2) car garages and eight (8) feet for single car garages. Accessory dwelling units located within a garage are subject to Section 17.57.040(L). Wall-mounted equipment within the minimum
1.b
Packet Pg. 35
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
13 required garage space identified above must clear a minimum of three and one-half (3 1/2) feet above the ground and may not impede vehicle parking.
S. Residential units shall be limited to one (1) electric service meter per residential unit. An accessory dwelling unit or guest house shall not be considered a residential unit for this section.
17.57.025 Two-Unit Residential Development
Amended and Restated
Two-Unit Residential Development
A. The purpose of this section is to implement California law mandating approval of not more than two residential units within a single-family residential zone and urban lot splits, including, without limitation Government Code Sections 65852.21 and 66411.7, respectively, as may be amended from time to time. This section controls in the event of any conflict with other sections of this code. California law controls and supersedes any conflicting part of this code.
B. Development. The Director must consider proposed developments containing not more than two residential units within a single-family residential zone ministerially, so long as the proposed development meets all requirements of applicable law including this code.
1. Standards. All developments proposed under this section must satisfy the objective development standards required in the underlying zoning designation, unless otherwise exempt pursuant to California law.
C. Urban lot splits. An application to review and approve a parcel map for an urban lot split must be ministerially reviewed and approved if the application satisfies all requirements of California law and this section.
1. All lot splits proposed under this section must satisfy the objective parcel map standards in Title 16 of this Code, unless otherwise exempt pursuant to California law.
2. All uses allowed on a lot created by this section are limited to residential uses.
3. An applicant for an urban lot split must prepare and execute an affidavit on a form approved by the City Attorney before the Building Official issues any final certificate of occupancy, requiring owner-occupancy of one of the two units as their principal residence for a minimum of three years from the date of the approval of the urban lot split, unless otherwise exempt pursuant to California law.
1.b
Packet Pg. 36
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
14 D. Certificate of occupancy. Before the Building Official issues any final certificate of occupancy for any two-unit development proposed pursuant to this section, the property owner must record with the County Recorder a covenant running with the land stating that all units developed pursuant to this section must be for a term of 30 days or longer. The covenant required by this Section must be approved as to form by the City Attorney.”
17. 57.040 Accessory Buildings and Structures
Amended and Restated
L. Accessory Dwelling Units. This subsection implements California law governing accessory dwelling unit (“ADU”) and junior accessory dwelling unit (“JADU”) mandates, including, without limitation, Government Code Section 66323, as may be amended from time to time, pursuant to California law. Should any conflict arise between this subsection and California law, California law controls with respect to the conflicting portions of this subsection and all other portions of this subsection will be deemed to be in full effect. An accessory dwelling unit is a residential use that is consistent with the City’s General Plan, residential zone designations, and density.
1. Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Chapter. Undefined words and phrases and have the same meaning as set forth in this Code or in Applicable law.
“Applicable law” means Title 7, Division, 1, Chapter 13 of the California Government Code, beginning at Government Code section 66310, et. seq., and the SCMC. “Primary dwelling” means a residential structure on a single parcel with provisions for living, sleeping, eating, a single kitchen for cooking, and sanitation facilities. Where more than one residential structure exists on a lot, the "primary dwelling" will either be the residential structure that was first issued a valid certificate of occupancy, or, when applicable, the largest residential structure on the lot.
2. Certificate of Occupancy.
a. Except as allowed by Applicable law, the Building Official will not issue a final certificate of occupancy for an ADU or JADU before the Building Official issues a final certificate of occupancy is issued for the primary dwelling(s).
3. Limitations.
1.b
Packet Pg. 37
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
15 a. ADUs may not be used in violation of this code, and any rental of the ADU must be for a term of 30 days or longer.
b. JADU may not be sold separately; has size and attribute restrictions required by this code; and the property owner must occupy either the single-family residence in which the JADU is permitted, or the newly created JADU, unless exempt pursuant to Applicable law, including without limitation Government Code Section 66333(b). The JADU cannot be rented for any period less than 30 days.
4. Application for Address Number. ADUs and JADUs that do not include an internal connection to the primary dwelling must submit an application for an address number.
A JADU with an internal connection to the primary dwelling will not receive an address number unless determined necessary for safety purposes by the Building Official.
Address numbers will be determined by the Building Official pursuant to the procedures outlined in this code. Address numbers must be placed over the entrance to the ADU or JADU or on some other place where the number can be visible from the street. When required by the Fire Chief, or designee, address identification must be provided in additional approved locations to facilitate emergency response.
5. Fees.
a. Except as provided in Applicable law, all ADUs and JADUs are subject to development impact fees. ADU development impact fees will be charged proportionally related to the square footage of the Primary dwelling unit in accordance with this code. b. Except as provided by Applicable law, each ADU and JADU must install a separate utility connection directly between the ADU and the utility, which is subject to a connection fee or capacity charge, that is proportionate to the burden of the proposed ADU on the water or sewer system based on its square footage or drainage fixture units. A JADU with internal connection to the primary dwelling must install a separate utility connection if required by the Building Official. The fee or charge may not exceed the reasonable cost of providing the services. c. The City may charge reasonable inspection and construction fees for inspections and for all required permits. The fees will be established by City Council resolution, as may be amended or superseded from time to time, and be assessed on the property owner.
17.66.070 Homeless Shelters.
The following standards apply to all homeless shelters:
1.b
Packet Pg. 38
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
16 A. Homeless shelters shall maintain a maximum occupancy not to exceed sixty (60) individuals, permitted by right. Occupancy in excess of sixty (60) individuals may be approved subject to the issuance of a conditional use permit.
B. Homeless shelters shall provide on-site waiting and intake areas screened from public view.
C. The homeless shelter shall provide on-site management with security during operational hours.
D. Parking areas shall be paved to the satisfaction of the Fire Department and City Engineer.
ED. The homeless shelter shall be well lit during operational hours and be in conformance with Section 17.51.050 (Outdoor Lighting Standards).
FE. Homeless shelters shall be allowed to have intake between the hours of five p.m. to eight p.m. or at dusk, whichever is sooner, and may discharge patrons from eight a.m. to ten a.m. the following day.
GF. Homeless shelters shall abide by all applicable development standards as set forth in this code.
HG. A homeless shelter shall not be located within three hundred (300) feet of another homeless shelter. Homeless shelters that are located outside of the Homeless Shelter Overlay Zone shall not be located within three hundred (300) feet of aa private or public primary or secondary school, public or private parks and community centers.
1.b
Packet Pg. 39
Attachment: Ordinance (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING) 1 Exhibit B
Proposed SCMC Amendments
16.28 Urban Lot Split Subdivision Requirements
This section is repealed.
17.11.020 Definitions.
“Accessory dwelling unit (ADU)” is defined pursuant to California law as may be amended from time to time, including without limitation, Government Code Sections 66313(a) and 66323. “Junior accessory dwelling unit (JADU)” is defined pursuant to California law as may be amended from time to time, including without limitation, Government Code Sections 66313(d) and 66323.
17.22.090 Accessory Dwelling Unit Permit.
The Class I application ministerial process shall apply to accessory dwelling units and junior accessory dwelling units (Ord. 21-1 § 6 (Exh. A), 1/26/21)
17.35 Mixed Use Zones
17.35.010 Mixed Use Corridor (MXC) Zone. Subsection (B) Residential Use Types
1. Caretaker’s Residence P
2. Community Care Facility C
3. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
4. Family Day Care Homes P
5. Home-Based Cottage Food Operation AP
6. Home Occupation Business P
7. Joint Living/Working Quarters M
8. Model Homes T
1.c
Packet Pg. 40
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 2 Residential Use Types
9. Residential Health Care Facility C
10. Residential Service/Care Home C
17.35.020 Mixed Use Neighborhood (MXN) Zone. Subsection (B) Residential Use Types
1. Caretaker’s Residence P
2. Community Care Facility C
3. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
4. Family Day Care Homes P
5. Home-Based Cottage Food Operation AP
6. Home Occupation Business P
7. Joint Living/Working Quarters M
8. Model Homes T
9. Residential Health Care Facility C
10. Residential Service/Care Home C
17.35.030 Mixed Use Urban Village (MXUV) Zone. Subsection (B) Residential Use Types
1. Caretaker’s Residence P
2. Community Care Facility C
3. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
4. Family Day Care Homes P
5. Home-Based Cottage Food Operation AP
6. Home Occupation Business P
7. Joint Living/Working Quarters M
1.c
Packet Pg. 41
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 3 Residential Use Types
8. Model Homes T
9. Residential Health Care Facility C
10. Residential Service/Care Home C
17.36 Open Space Zones
17.36.010 Open Space (OS) Zone. Subsection (B)
Residential Use Types
1. Caretaker’s Residence P
2. Dwelling—Single-Family P
3. Home-Based Cottage Food Operation AP
4. Home Occupation Business P
5. Family Day Care Homes—Adult P
6. Family Day Care Homes—Family P
7. Residential Service/Care Home P
17.36.020 Open Space—Agriculture (OS-A) Zone. Subsection (B) Residential Use Types
1. Caretaker’s Residence P
2. Dwelling—Single-Family P
3. Home-Based Cottage Food Operation AP
4. Home Occupation Business P
5. Family Day Care Homes—Adult P
6. Family Day Care—Family P
7. Residential Service/Care Home P
17.36.030 Open Space—National Forest (OS-NF) Zone. Subsection (B) Residential Use Types
1. Caretaker’s Residence P
2. Dwelling—Single-Family P
1.c
Packet Pg. 42
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 4 Residential Use Types
3. Family Day Care Homes—Adult P
4. Family Day Care Homes—Family P
5. Residential Service/Care Home P
17.36.040 Open Space—Bureau of Land Management (OS-BLM) Zone.
Subsection (B)
Residential Use Types
1. Caretaker’s Residence P
2. Dwelling—Single-Family P
3. Family Day Care Homes—Adult P
4. Family Day Care Homes—Family P
5. Residential Service/Care Home P
17.37.020 Public/Institutional (PI) Zone
Residential Use Types
1. Caretaker’s Residence P
2. Dwelling—Single-Family P
3. Family Day Care Homes—Adult P
4. Family Day Care—Family P
5. Fraternity/Sorority Houses C
6. Residential Service/Care Home P
17.38.050 MU – Mixed Use Overlay Zone Subsection (E)
Residential Use Types
1. Caretaker’s Residence P
2. Community Care Facility C
3. Dwelling
a. Single-Family P
b. Two (2) Family P
c. Multifamily P
1.c
Packet Pg. 43
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 5 Residential Use Types
4. Family Day Care Homes P
5. Home-Based Cottage Food Operation AP
6. Home Occupation Business P
7. Joint Living/Working Quarters M
8. Model Homes M
9. Residential Health Care Facility C
10. Residential Service/Care Home C
17.42.010 Residential Use Types.
1. Caretaker’s Residence Parking
Includes permanent or temporary housing that is secondary or accessory to the primary nonresidential use on the same property. Caretaker’s housing shall be used exclusively for occupancy by a caretaker for security or monitoring of the primary use. Caretaker’s residences shall comply with the parking standards for single-family residential uses.
2 fully enclosed spaces;
spaces may be tandem
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P P P P P P
2. Community Care Facility Parking
Includes any residential facility which is planned, designed and managed to include facilities and common areas that maximize the residents’ potential for independent living. The facility may be occupied by elderly or disabled persons or households as defined in the Health and Safety Code. Direct services that may be provided include those relating to nutritional, social, recreational, housekeeping and personal needs of the residents.
0.5 spaces per unit; plus
guest parking at 1 space
per each 8 units
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X C C C C C C X X
3. Dwelling Parking
Includes a building or portion of a building with a single room or group of internally connected rooms that is designed exclusively for the long-term habitation of a family and contains facilities for sleeping, eating, sanitation and a kitchen.
a. Single-Family—a detached building designed exclusively for occupancy by a single family.
2 fully enclosed
spaces
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P X X X X X
1.c
Packet Pg. 44
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 6 3. Dwelling Parking
b. Two (2) Family—includes a duplex, or other building designed for occupancy by two (2) families living independently of each other, which may be owned individually or by a single landlord.
2 fully enclosed
spaces per unit
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X P P P X X X X X
c. Multifamily—includes a building designed and intended for occupancy by three (3) or more families living independently of each other, each in a separate dwelling unit, which may be owned individually or by a single landlord. Includes apartments, townhomes, row houses, triplexes, and fourplexes. Accessible parking stalls shall be required in accordance with the Building Code.
(1) Studio—1
enclosed parking
space per unit
(2) One bedroom—2
enclosed parking
spaces per unit
(3) Two bedroom—2
enclosed parking
spaces per unit
(4) Guest parking—1
parking space per
each two units (for
complexes with more
than 3 units)
(5) For senior/age
restricted
developments, one
parking space per
each two units, plus
required guest
parking
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X P P P M1, 2 C2 C2 X X
1Notwithstanding the above, a multifamily project that includes at least twenty percent (20%) of total project units as affordable to lower income households shall be permitted without need for use permit on any of the following parcels: 2861-058-072, 2861-058-073, 2861-058-074, 2861-058-075, 2861-058-076, 2861-058-077, 2861-058-079, 2861-058-080, 2861-058-081, 2861-058-082, 2861-058-083, 2861-058-084, 2861-058-085, and 2861-058-071.
2Projects subject to and compliant with all requirements of Government Code Section 65913.4 are permitted without a conditional use permit or any other nonlegislative discretionary approval.
4. Family Day Care Homes Parking
Includes a private single-family dwelling where nonmedical care and protection are provided to individuals for periods less than twenty-four (24) hours.
a. Adult—up to six (6) adults.
2 fully enclosed spaces
1.c
Packet Pg. 45
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 7 4. Family Day Care Homes Parking
b. Family—up to fourteen (14) children. Family day care homes shall be licensed by the State and consistent with Section 1597.30 of the Health and Safety Code.
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P P P X X X
5. Fraternity and Sorority Houses Parking
Includes buildings containing sleeping rooms, bathrooms, common rooms and a central kitchen and dining room maintained exclusively for fraternity/sorority members and their guests or visitors and affiliated with an institution of higher learning.
0.75 spaces per bed
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X C C C X X X X X
6. Home-Based Cottage Food Operation Parking
Includes an enterprise which produces and sells cottage food products in the home kitchen of a primary residential dwelling unit. A cottage food operation shall be considered an accessory use and shall not operate as a food facility or wholesale food manufacturer. Home-based cottage food operations shall be in accordance with Section 17.66.025 (Cottage Food Operations).
No additional parking
required
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
AP AP AP AP AP AP AP AP AP AP AP AP AP X X
7. Home Occupation Businesses Parking
Includes office businesses which are incidental and accessory to a residential use and do not include the storage of materials of any kind or product manufacturing of any kind. Home occupation businesses shall be in accordance with Chapter 17.65 (Home Occupations).
No additional parking
required
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P P P X X X
8. Joint Living and Working Quarters (Live/Work Units) Parking Includes a dwelling occupying a building designed for commercial or industrial occupancy and includes adequate working space reserved for, and regularly used by, one or more persons residing therein. Joint living and working quarters shall be in accordance with Section 17.66.080 (Joint Living and Working Quarters).
2 fully enclosed spaces for
residential use, plus
parking for commercial use
as per the parking
requirements contained in
this code
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X C C C M C C C C
9. Model Homes Parking
Includes dwellings initially constructed for the purposes of displaying the different housing models offered for sale within a residential development. 3 spaces per model
1.c
Packet Pg. 46
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 8 9. Model Homes Parking
Model homes shall be developed in accordance with Section 17.67.030(C) (temporary uses).
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
T T T T T T T T T T T T T X X
10. Mobilehome Park Parking
Includes sites containing spaces with the required improvements and utilities that are leased for the long-term placement of mobile or manufactured homes and may include services and facilities for residents. 2 spaces per unit; spaces
may be tandem; plus 1
space per 2 units for guest
parking
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
C C C C C C C C C C X C X X X
11. Residential Health Care Facility Parking
Includes residential facilities usually occupied by the elderly that provide rooms, meals, personal care and health monitoring services under the supervision of a professional nurse or other professional health care provider and that may provide other services, such as recreation, social and cultural activities, financial services and transportation. Typical uses include convalescent homes.
0.5 spaces for each unit
and/or bed
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
X X X X X X X M M M C C C C X
12. Residential Service/Care Home Parking
Includes a private single-family residence where twenty-four (24) hour care, nonmedical services, supervision, treatment or assistance essential for sustaining the activities of daily living is provided. Residential service/care home shall be consistent with Section 1500 et seq. of the Health and Safety Code and any other applicable State law.
2 fully enclosed spaces
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
P P P P P P P P P P X X X X X
13. Rooming House Parking
Means a dwelling unit (other than a hotel or motel) where three (3) or more rooms are rented individually or separately to tenants under separate rental agreements where tenants do not share common financial responsibility for use of the dwelling unit as a whole. Rent may be paid in money, goods, labor, or otherwise. Rental agreements may be written or oral. Housing protected by Federal or State law, including housing for persons protected under the Fair Housing Act (42 U.S.C. Section 3604(F)) and the California Fair Housing Act (California Government Code Section 12920 et seq.), or housing otherwise subject to treatment as a single-family dwelling unit by the provisions of State law shall not constitute a rooming house.
2 fully enclosed stalls;
plus one parking stall for
each resident 18 years or
older
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
1.c
Packet Pg. 47
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 9 13. Rooming House Parking
X X X X X X X P* P* P* X X X X X
*Rooming houses are not permitted in neighborhoods that are comprised predominantly of single-family detached residential units.
14. Supportive Commercial Uses Serving the Local Area Parking Supportive commercial uses serving the local area, such as grocery stores, restaurants, personal services, and retail sale of specialty goods, may be permitted in a proposed development project, new establishment, or conversion of a residence; provided, that the size, location, design, and use types are determined to be compatible with the surrounding area. Such supportive commercial uses in the NU4 and NU5 zones shall be located in activity areas, must be at least one (1) mile from any commercial land use designation, and must not exceed five (5) acres in size. A change in use in an established activity area shall be subject to the required entitlement for such use in the CN zone. However, a permitted use in the CN zone shall require a MUP.
Parking as determined by
the Director
NU1 NU2 NU3 NU4 NU5 UR1 UR2 UR3 UR4 UR5 CR CC CN BP I
M M M M M M M M M M X X X X X
17.42.020 State-Designated Housing Use Types
A. The following residential use types are defined or governed by state law in all zones.
1. Accessory Dwelling Unit
Accessory Dwelling Units and Junior Accessory Dwelling Units are permitted pursuant to California law as may be amended from time to time, including without limitation, Government Code Section 66323.
2. Employee and Agricultural Worker Housing
Employee housing serving six or fewer employees and agricultural employee housing consisting of not more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household are permitted pursuant to California law, as may be amended from time to time, including, without limitation, Health and Safety Code Sections 17021.5 and 17021.6.
3. Low-Barrier Navigation Centers
Low Barrier Navigation Centers are reviewed and ministerially permitted pursuant to California law as may be amended from time to time, including without limitation, Government Code Sections 65662, et. seq.
4. Supportive Housing
Supportive Housing is permitted pursuant to California law, as may be amended from time to time, including without limitation, Government Code Section 65583. Supportive Housing includes housing with no limits on length of stay that is linked to on-site or off-site services that assist a resident in retaining housing, improving his/her health conditions and maximizing his or her ability to live and, when possible, work in the community.
1.c
Packet Pg. 48
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 10 5. Transitional Housing
Transitional Housing is permitted pursuant to California law, as may be amended from time to time, subject to only those restrictions that apply to other residential dwellings of the same type in the same zone. Transitional Housing includes buildings configured as a rental housing development but operated under program requirements. Upon termination of assistance, the unit shall be recirculated as an assisted unit to another eligible program recipient at some predetermined point in time where length of stays shall be no less than six (6) months and no more than two (2) years.
17.51.030 Landscaping and Irrigation Standards. Subsection (C)(6)(a)(vii)
a. Single-Family Development.
i. All new residential development shall have one (1) twenty-four (24) inch box tree planted in the required front yard, to the satisfaction of the Director. This requirement may be waived or modified by the Director where it is found to be impractical due to topographical conditions, where it is not keeping with the neighborhood, or where it otherwise will not benefit the area.
ii. Landscape parkways shall be installed in all new residential development. These parkways shall be installed between the curb and sidewalk and shall be five (5) feet in width. Parkways shall not be separated by sidewalk.
iii. For single-family homes located adjacent to a parkway, either public or private right- of-way, the homeowner has the responsibility to plant, irrigate and maintain the parkway in a healthy and thriving condition, unless the parkway is maintained by the homeowners’ association or other entity. The parkway shall be planted with City-approved street trees and landscaping that is consistent with other parkways within the community the property is located within. Plant material that contains spines or thorns, poisonous-to-the-touch or noxious plants, nonliving materials that exceed six (6) inches in height, and gravel or rocks or wood chips that exceed more than fifty percent (50%) of the parkway area are prohibited in the parkway.
iv. The landscape plan shall include all areas located within the front yard and all side yard areas exposed to the street view.
v. The preferred plant palette shall include drought tolerant and low-water use landscaping. Low-water usage turf or warm season turf is recommended. vi. Turf shall be limited to a maximum of fifty percent (50%) of the total landscaped area.
Turf shall be excluded from areas difficult to irrigate (e.g., narrow pathways, parkways less than five (5) feet in width, sidewalk strips, slopes, etc.).
1.c
Packet Pg. 49
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 11 17.57.020 Residential Development Standards
H. Modifications of Garages. Conversions of existing required garages into habitable space are permitted only following the issuance of a certificate of occupancy for a new garage consistent with the residential parking requirements, except as otherwise provided by California Law, including, without limitation, Government Code 66323. Modifications are not permitted which reduce the interior dimensions to less than twenty (20) feet by twenty (20) feet for two (2) car garages, or two (2) ten (10) foot by twenty (20) foot garages in the case of single car garages.
Clear entry must be provided for all garages at a minimum of sixteen (16) feet for two (2) car garages and eight (8) feet for single car garages. Wall-mounted equipment within the minimum required garage space identified above must clear a minimum of three and one-half (3 1/2) feet above the ground and may not impede vehicle parking.
S. Residential units shall be limited to one (1) electric service meter per residential unit.
17.57.025 Two-Unit Residential Development
Amended and Restated
Two-Unit Residential Development
A. The purpose of this section is to implement California law mandating approval of not more than two residential units within a single-family residential zone and urban lot splits, including, without limitation Government Code Sections 65852.21 and 66411.7, respectively, as may be amended from time to time. This section controls in the event of any conflict with other sections of this code. California law controls and supersedes any conflicting part of this code.
B. Development. The Director must consider proposed developments containing not more than two residential units within a single-family residential zone ministerially, so long as the proposed development meets all requirements of applicable law including this code.
1. Standards. All developments proposed under this section must satisfy the objective development standards required in the underlying zoning designation, unless otherwise exempt pursuant to California law.
C. Urban lot splits. An application to review and approve a parcel map for an urban lot split must be ministerially reviewed and approved if the application satisfies all requirements of California law and this section.
1.c
Packet Pg. 50
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 12 1. All lot splits proposed under this section must satisfy the objective parcel map standards in Title 16 of this Code, unless otherwise exempt pursuant to California law.
2. All uses allowed on a lot created by this section are limited to residential uses.
3. An applicant for an urban lot split must prepare and execute an affidavit on a form approved by the City Attorney before the Building Official issues any final certificate of occupancy, requiring owner-occupancy of one of the two units as their principal residence for a minimum of three years from the date of the approval of the urban lot split, unless otherwise exempt pursuant to California law.
D. Certificate of occupancy. Before the Building Official issues any final certificate of occupancy for any two-unit development proposed pursuant to this section, the property owner must record with the County Recorder a covenant running with the land stating that all units developed pursuant to this section must be for a term of 30 days or longer. The covenant required by this Section must be approved as to form by the City Attorney.”
17. 57.040 Accessory Buildings and Structures
Amended and Restated
L. Accessory Dwelling Units. This subsection implements California law governing accessory dwelling unit (“ADU”) and junior accessory dwelling unit (“JADU”) mandates, including, without limitation, Government Code Section 66323, as may be amended from time to time, pursuant to California law. Should any conflict arise between this subsection and California law, California law controls with respect to the conflicting portions of this subsection and all other portions of this subsection will be deemed to be in full effect. An accessory dwelling unit is a residential use that is consistent with the City’s General Plan, residential zone designations, and density.
1. Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Chapter. Undefined words and phrases and have the same meaning as set forth in this Code or in Applicable law.
“Applicable law” means Title 7, Division, 1, Chapter 13 of the California Government Code, beginning at Government Code section 66310, et. seq., and the SCMC. “Primary dwelling” means a residential structure on a single parcel with provisions for living, sleeping, eating, a single kitchen for cooking, and sanitation facilities. Where more than one residential structure exists on a lot, the "primary dwelling" will either be the
1.c
Packet Pg. 51
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 13 residential structure that was first issued a valid certificate of occupancy, or, when applicable, the largest residential structure on the lot.
2. Certificate of Occupancy.
a. Except as allowed by Applicable law, the Building Official will not issue a final certificate of occupancy for an ADU or JADU before the Building Official issues a final certificate of occupancy is issued for the primary dwelling(s).
3. Limitations.
a. ADUs may not be used in violation of this code, and any rental of the ADU must be for a term of 30 days or longer.
b. JADU may not be sold separately; has size and attribute restrictions required by this code; and the property owner must occupy either the single-family residence in which the JADU is permitted, or the newly created JADU, unless exempt pursuant to Applicable law, including without limitation Government Code Section 66333(b). The JADU cannot be rented for any period less than 30 days.
4. Application for Address Number. ADUs and JADUs that do not include an internal connection to the primary dwelling must submit an application for an address number.
A JADU with an internal connection to the primary dwelling will not receive an address number unless determined necessary for safety purposes by the Building Official.
Address numbers will be determined by the Building Official pursuant to the procedures outlined in this code. Address numbers must be placed over the entrance to the ADU or JADU or on some other place where the number can be visible from the street. When required by the Fire Chief, or designee, address identification must be provided in additional approved locations to facilitate emergency response.
5. Fees.
a. Except as provided in Applicable law, all ADUs and JADUs are subject to development impact fees. ADU development impact fees will be charged proportionally related to the square footage of the Primary dwelling unit in accordance with this code. b. Except as provided by Applicable law, each ADU and JADU must install a separate utility connection directly between the ADU and the utility, which is subject to a connection fee or capacity charge, that is proportionate to the burden of the proposed ADU on the water or sewer system based on its square footage or drainage fixture units. A JADU with internal connection to the primary dwelling must
1.c
Packet Pg. 52
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 14 install a separate utility connection if required by the Building Official. The fee or charge may not exceed the reasonable cost of providing the services. c. The City may charge reasonable inspection and construction fees for inspections and for all required permits. The fees will be established by City Council resolution, as may be amended or superseded from time to time, and be assessed on the property owner.
17.66.070 Homeless Shelters.
The following standards apply to all homeless shelters:
A. Homeless shelters shall maintain a maximum occupancy not to exceed sixty (60) individuals, permitted by right. Occupancy in excess of sixty (60) individuals may be approved subject to the issuance of a conditional use permit.
B. Homeless shelters shall provide on-site waiting and intake areas screened from public view.
C. The homeless shelter shall provide on-site management with security during operational hours.
D. The homeless shelter shall be well lit during operational hours and be in conformance with Section 17.51.050 (Outdoor Lighting Standards).
E. Homeless shelters shall be allowed to have intake between the hours of five p.m. to eight p.m. or at dusk, whichever is sooner, and may discharge patrons from eight a.m. to ten a.m. the following day.
F. Homeless shelters shall abide by all applicable development standards as set forth in this code.
G. A homeless shelter shall not be located within three hundred (300) feet of another homeless shelter. Homeless shelters that are located outside of the Homeless Shelter Overlay Zone shall not be located within three hundred (300) feet of a private or public primary or secondary school, public or private parks and community centers.
1.c
Packet Pg. 53
Attachment: Proposed SCMC Amendments - Clean Version (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - 2023 HCD
Correspondence
1.d
Packet Pg. 54
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
March 24, 2023
Tom Cole, Director
Community Development Department
City of Santa Clarita
23920 W. Valencia Blvd. Suite 302
Santa Clarita, CA 91355
Dear Tom Cole:
RE: Review of Santa Clarita’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, § 65852.2)
Thank you for submitting the City of Santa Clarita’s (City) accessory dwelling unit (ADU) Ordinance No. 21-1 (Ordinance), adopted January 26, 2021, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 65852.2, subdivision (h). HCD finds that the Ordinance does not comply with sections 65852.2 and 65852.22 in the manner noted below. Under that statute, the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than April 21, 2023.
The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects:
• 17.42.010 – Parking Exemptions – The Ordinance lists the parking exemptions for ADUs in the Residential Use Types table under “Parking”.
However, this list omits one condition as stated in Government Code section 65852.2, subdivision (d)(1)(B): a local agency shall not impose parking standards for an ADU when “[t]he accessory dwelling unit is located within an architecturally and historically significant historic district.” The City should amend this section to address the omission.
• 17.51.030 (C)(6)(a)(vii) – Landscape Standards for ADUs – The Ordinance states that one (1) twenty-four (24) inch box tree shall be planted in the front or corner yard setback of a unit if it is located along a street frontage.
However, local development standards provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), cannot preclude ADUs created under Government Code section 65852.2, subdivision (e). While the City may award voluntary tree planting by providing incentives,
1.d
Packet Pg. 55
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
it may not make it a requirement. The City might consider creating or modifying incentive programs to encourage tree planting. Accordingly, the City must either remove the tree planting requirement from the Ordinance or clarify its incentives.
• 17.57.040 (L)(1)(a) – Locations of ADUs in Zones – The Ordinance states that ADUs may be permitted only on parcels that are zoned to allow single- family or multifamily dwelling residential use and that include a proposed or existing residential unit and provides for zones allowing ADUs. Chapter 17.34 of the City’s municipal code defines the Community Commercial (CC) and Neighborhood Commercial (CN) Zones which allow for multifamily dwellings.
However, the Ordinance did not include these zones in Section 17.42.010 when identifying zones permitting ADUs. Government Code section 65852.2, subdivision (a), permits ADUs in all areas zoned to allow single-family and multifamily dwelling use. Hence, ADUs may be allowed in zones, such as agricultural, commercial, or mixed-use zones wherever residential uses are allowed. Therefore, the City must revise and include these zones to permit ADUs and should state in the language that ADUs are permitted in any zone that allows residential or mixed use.
• 17.57.040 (L)(1)(b) – ADUs in High Fire Hazard Severity Zone – The Ordinance states that where a lot or any portion is located in a high fire hazard severity zone (HFHSZ), an ADU shall be prohibited on the lot unless it either fronts a highway and vehicles enter directly from the highway, or it has two means of direct vehicular access to a highway that meets certain requirements. The requirements listed under this section of the Ordinance should be removed as they go beyond the scope of State ADU Law. Although the Ordinance does not cite the statute, the City seems to be relying on Government Code section 65852.2, subdivision (a)(1)(A), which states that a local agency may adopt an ordinance that designates areas where ADUs may be permitted “based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety.” Any limitations, by local ordinance, on where ADUs may be permitted must be based only on these narrow factors and should be accompanied by detailed findings of fact explaining why ADU limitations are required on the basis of these factors.
Further, even if the City would provide adequate justification for this restriction on ADUs under this subdivision, the City may not restrict ADUs that fall under subdivision (e), as local development standards (such as an area restriction based on high fire hazard severity designation) provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), cannot preclude ADUs created under Government Code section 65852.2,
1.d
Packet Pg. 56
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
subdivision (e). Therefore, the City must ministerially permit units created pursuant to subdivision (e).
Finally, please note that the fire hazard severity zone maps prepared by California Department of Forestry and Fire Protection (CAL FIRE) 1 were not
intended to serve as a development moratorium. Rather, these maps and corresponding hazard severity zones are intended to be used for planning purposes and mitigation measures. Specifically, development projects located in HFHSZs are required to conform with the stricter building standards set forth in Chapter 7A of the California Building Code.
• 17.57.040 (L)(2)(c) – Setbacks – The Ordinance states that ADUs shall comply with corner and reverse corner setbacks unless it can be demonstrated that a four-foot side setback does not create a safety hazard.
However, Government Code section 65852.2, subdivision (a)(1)(D)(vii), states: “a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure.” However, side lot line setbacks, established in statute, apply to the street sides of a corner lot.
Further, Government Code section 65852.2, subdivision (c)(1)(C), states that a local agency may not impose “Any requirement for...front setbacks that would not permit at least an 800 square foot accessory dwelling unit with four- foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” Therefore, the City must remove this section or clarify that the provision applies to front setbacks only.
• 17.57.040 (L)(2)(D) – Height – The Ordinance requires an “Adjustment Permit” for any ADU in excess of 16 feet in height. This permit is not described in this Ordinance; it appears to be a non-ministerial process.
Moreover, be advised that height limits increased as of January 1, 2023, with the passage of Senate Bill 897 (Chapter 664, Statues of 2022), codified in Government Code section 65852.2, subdivision (c)(2)(D)(ii). As such, lot-wide height minimum allowances are 18 feet and attached ADUs in most cases may be up to 25 feet. The City must amend the Ordinance accordingly.
• 17.57.040 (L)(2)(h) – Rear Yard Coverage – The Ordinance states that ADUs shall count as buildings for the purposes of calculating rear yard coverage.
The City may impose development standards such as the rear yard coverage; however, Government Code section 65852.2, subdivision (c)(2)(C), states
1 For more information, please visit Cal FIRE's website: https://osfm.fire.ca.gov/divisions/community- wildfire-preparedness-and-mitigation/wildland-hazards-building-codes/fire-hazard-severity-zones- maps/.
1.d
Packet Pg. 57
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
that the City must still accommodate for an ADU of up to at least 800 square feet with four-foot rear and side yard setbacks. If this is the only allowable space, the City must allow for the ADU to be built in the minimum required distance area. The Ordinance must be revised to include “where feasible,” which will give more flexibility in language to accommodate an ADU of at least 800 square feet.
• 17.57.040 (L)(2)(k) – Distance Between Structures – The Ordinance states that a detached ADU shall be located at least six (6) feet away from the exterior wall of the primary dwelling unit. In addition, the Ordinance states that if detached ADUs share a common roof structure (e.g., a breezeway, service porch, covered patio, etc.), the breezeway or patio shall be at least six feet wide for safety purposes. The City may impose development standards such as the distance between structures; however, Government Code section 65852.2, subdivision (c)(2)(C), states that the City must still accommodate for a detached ADU of up to at least 800 square feet, and with four-foot rear and side yard setbacks to be built in the minimum required distance area if this is the only allowable space. The Ordinance must be revised to include “where feasible,” which will give more flexibility in language to accommodate an ADU of at least 800 square feet.
• 17.57.040 (L)(2)(n)(ii) – Residency Requirements – The Ordinance states that in accordance with Government Code section 65852.22, owner-occupancy is always required where a lot includes a Junior ADU (JADU). However, Government Code section 65852.22, subdivision (a)(2), states that owner- occupancy in the single-family residence in which the JADU will be permitted shall not be required if the owner is another government agency, land trust, or housing organization. The ordinance must be revised to align with Government Code section 65852.22, subdivision (a)(2).
• 17.57.040 (L)(2)(o) – Open Space Requirement – The Ordinance states that should construction of an ADU result in the loss of required open space, the property owner shall provide equivalent replacement open space on site.
However, per Government Code section 65852.2, subdivision (c)(2)(C), the City must allow for an ADU of up to at least 800 square feet, and with four- foot rear and side yard setbacks to be built in the minimum required distance area if this is the only allowable space. Also, local development standards provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), cannot preclude ADUs created under subdivision (e). The City should clarify this requirement and add the clause, “However, no local design standard, such as the open space requirement, shall preclude an accessory dwelling unit of at least 800 square feet with a height limit of 18 feet and four-foot setbacks from being constructed.”
1.d
Packet Pg. 58
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
• 17.57.040 (L)(2)(p) – Oak Trees – The Ordinance states that the Oak Tree Preservation Ordinance (Section 17.51.040) shall apply to the construction of ADUs or conversion of structures to ADUs. However, Government Code Section 65852.2, subdivision (a)(7), states that no other local ordinance, policy, or regulation shall be the basis for the delay or denial of a building permit or a use permit under this subdivision. A broad application of the Oak Tree Preservation ordinance could conflict and limit ADU creation and violate State ADU Law. Furthermore, Government Code section 65852.2, subdivision (c)(2)(C), requires that local design standards cannot preclude the creation of an 800 square foot ADU with four-foot side and rear setbacks. Therefore, the City must remove this section.
• 17.57.040 (L)(2)(q) – Significant Ecological Areas – The Ordinance states that the Significant Ecological Area (SEA) Overlay Zone (Section 17.38.080) shall apply to ADUs. Section 17.38.080 of the City’s municipal code states that the SEA overlay zone applies to areas identified on the adopted SEA map on file in the City, and any development including, but not limited to, grading permits, building permits and land use entitlements, in an area as indicated on the SEA map is subject to an SEA conformance review by the approving authority. However, Government Code section 65852.2, subdivision (a)(1)(A), states “the designation of areas [where ADUs are permitted] may be based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety.” Any designation of an area where ADUs are not permitted may not be made on an ad-hoc basis, but rather must be designated and should be supported by the City’s findings.
Lastly, local development standards or location constraints cannot preclude an ADU built subject to Government Code section 65852.2, subdivision (e).
The City must remove this section or revise its language to only prohibit units where the adequacy of water and sewer services are insufficient and the impact of ADUs on traffic flow and public safety can be supported by findings.
• 17.57.040 (L)(2)(r) – Separate Sale – The Ordinance prohibits separate sale of an ADU from its primary dwelling. However, Government Code section 65852.26 creates a narrow exception to allow separate conveyance of an ADU to a qualified buyer if the property was built or developed by a qualified nonprofit corporation, among other things. The City must revise the Ordinance to allow for such an exception.
• 17.57.040 (L)(2)(t) – Exception Clause – The Ordinance creates a section that exempts an 800 square foot unit with a height limit of 16 feet and four- foot setbacks. However, this does not conform to the current text of Government Code section 65852.2, subdivision (c)(2)(D), which permits a height limit on such units of up to 18, 20 or 25 feet as provided in the subdivision. The Ordinance must add language which prohibits jurisdictions from applying “any
1.d
Packet Pg. 59
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
requirement for a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards” (Gov. Code, § 65852.2, subd. (c)(2)(C)).
• 17.57.040 (L)(3)(a) – Number – The Ordinance allows for one JADU in combination with an ADU on a lot zoned for single-family residences. However, Government Code section 65852.2, subdivision (e)(1), states that a local agency shall ministerially approve an application to create any of the following ADUs listed from subdivision (e)(1)(A) through (D). As further explained in the most recent ADU Handbook
2 of July 2022 on page 20, local jurisdictions must
allow these unit types in combination with one another. Therefore, the City must amend the Ordinance to allow for a JADU, an ADU converted from space within a proposed or existing primary dwelling or accessory structure and a detached ADU of at least 800 square feet and four-foot side and rear setbacks.
• 17.57.040 (L)(3)(b)(i) – ADUs On Lots with Multifamily Dwellings – The Ordinance states that in the event the construction of an ADU results in the loss of the amenity required by ordinance or condition of approval, the amenity shall be replaced prior to occupancy of the first ADU. However, the Ordinance should clarify and define what “amenities” include. Local development standards like amenity replacement required by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), cannot preclude ADUs created under Government Code section 65852.2, subdivision (e). In addition, no other local ordinance, policy, or regulation shall be the basis for the delay or denial of a building permit or a use permit under this subdivision (Gov. Code, § 65852.2, subd. (a)(7)). Therefore, this section of the Ordinance must be removed or revised.
• 17.57.040 (L)(3)(b)(i) and (L)(3)(b)(ii) – Unit Combination – The Ordinance states that, for multifamily buildings, “...one of the two following categories of accessory dwelling units are permitted” and “Attached accessory dwelling units are not permitted on a lot that includes one or more detached accessory dwelling units.” This appears to prohibit the combination of units build subject to Government Code section 65852.2, subdivisions (e)(1)(C), which refers to conversions of existing space within the multifamily dwelling, and (e)(1)(D) which allows for two detached ADUs. Government Code section 65852.2,
2 HCD ADU Handbook can be found here: https://www.hcd.ca.gov/sites/default/files/2022- 07/ADUHandbookUpdate.pdf.
1.d
Packet Pg. 60
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
subdivision (e)(1), states that a local agency shall ministerially approve an application to create any of the following ADUs listed from subdivision (e)(1)(A) through (D). As further explained in the most recent ADU Handbook of July 2022 on page 20, local jurisdictions must allow these unit types in combination with one another. Therefore, the City must amend the Ordinance to allow for a combination of ADUs for multifamily dwellings.
• 17.57.040 (L)(3)(b)(ii) – Parking Requirements – The Ordinance states that required parking, open space, or other amenities or site improvements required by the condition of approval that are demolished to construct these ADUs shall be replaced on site prior to occupancy of the first ADU. However, the Ordinance should clarify and define amenities, and shall not require that off street parking spaces be replaced when a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU (Government Code section 65852.2, subdivision (a)(1)(D)(xi)). Lastly, local development standards like amenity replacement required by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), cannot preclude ADUs created under Government Code section 65852.2, subdivision (e). Therefore, the ADU ordinance must be revised to remove the replacement requirements,
• 17.57.040 (L)(5) – Impact Fees – The Ordinance states that impact fees imposed on ADUs shall be established by City Council resolution. However, Government Code section 65852.2, subdivision (f)(3)(A), states that any impact fees charged for an ADU of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit.
For clarity, the Ordinance must be revised to include the exemption of ADUs less than 750 square feet from impact fees.
In response to the findings in this letter, and pursuant to Government Code section 65852.2, subdivision (h)(2)(B), the City must either amend the Ordinance to comply with State ADU Law or adopt the Ordinance without changes. Should the City choose to adopt the Ordinance without the changes specified by HCD, the City must include findings in its resolution that explain the reasons the City finds that the Ordinance complies with State ADU Law despite the findings made by HCD.
Accordingly, the City’s response should provide a plan and timeline to bring the Ordinance into compliance.
Please note that, pursuant to Government Code section 65852.2, subdivision (h)(3)(A), if the City fails to take either course of action and bring the ordinance into compliance with State ADU Law, HCD may notify the City and the California Office of the Attorney General that the City is in violation of State ADU Law.
1.d
Packet Pg. 61
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Tom Cole, Director
HCD appreciates the City’s efforts provided in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Molivann Phlong, of our staff, at [email protected].
Sincerely,
Shannan West
Housing Accountability Unit Chief
1.d
Packet Pg. 62
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 63
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 64
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 65
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 66
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 67
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 68
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 69
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 70
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 71
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 72
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 73
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 74
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 75
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW 2025 HCD
Correspondence
1.d
Packet Pg. 76
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / F AX (916) 263-7453
www.hcd.ca.gov
December 10, 2025
Jason Crawford, Director of Community Development
P
lanning Department
City of Santa Clarita
23920 Valencia Blvd.,
Santa Clarita, CA 91355
Dear
Jason Crawford:
R
E: Review of Santa Clarita’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66310 - 66342) and SB9 Ordinance under State SB9 Law (Gov. Code, §§ 65852.21, 66411.7)
Thank
you for submitting the City of Santa Clarita (City) ADU Ordinance (Ordinance) No. 25-1 and the SB 9 Ordinance No. 22-2, adopted May 27, 2025, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance consistency with State ADU Law and Senate Bill (SB) 9 Law. The Department submits these written findings pursuant to Government Code section 66326, subdivision (a) and Government Code section 65585, subdivision (j).
HC
D finds that the Ordinance fails to comply with State ADU Law and SB 9 in the manner noted below. Pursuant to state law, the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than January 9, 2025.
SB9
Findings
1. Sec
tion 17.57.025 B. – Single SB9 Development – The Ordinance states, “For purposes of [SB9 Unit Approvals] a two (2) unit residential development contains two (2) residential units if the development proposes two (2) new units or if it proposes to add one (1) new unit to one (1) existing unit.” This suggests that only the second primary dwelling constructed on a lot would be considered an SB9 unit and thus eligible for review under SB 9. However, Government Code section 65852.21, subdivision (a) states that, “A proposed housing development containing no more than two residential units within a single-family residential zone shall be considered ministerially, if the proposed housing development meets all of the following requirements...”. Therefore, SB 9 is applicable in a scenario where construction results in either one or two primary
1.d
Packet Pg. 77
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
dwel
ling units on a lot. Both the first and the second primary dwelling unit constructed on a lot are eligible for SB 9. The Ordinance must be modified to clarify that both first and second primary dwelling units, or up to two primary dwelling units, are eligible for SB 9 processes and applicable development standards.
2. Section 17.57.025 B.1 – 25% Existing Walls – The Ordinance states, “No more than twenty-five percent (25%) of the existing exterior structural walls shall be demolished to create the two (2) unit residential development…” This requirement reflects outdated SB9 Law; with the adoption of SB 450 (Chapter 286, Statutes of 2024) the 25% demolition restriction has been removed. The City must remove this stipulation from the Ordinance to become consistent with SB 9.
3. Sec
tion 17.57.025 B.1, B.2 and 16.28.050 C - Maximum Size – The Ordinance restricts duplex units and units on split lots to 800 square feet. However, Government Code section 65852.21, subdivision (b)(3) states “A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the underlying zone.” There does not appear to be a size restriction on residential development in the underlying zone, and therefore the size restriction for SB 9 units must be removed.
4. Sec
tion 17.57.025 B.4. – ADUs and Duplexes – The Ordinance states, “Neither Accessory Dwelling Units nor junior accessory dwelling units shall be permitted on a parcel if a two (2) unit development is proposed or has been approved.” However, Government Code section 65852.21, subdivision (b)(3) states, “A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the underlying zone.” A restriction on ADUs specific to duplexes created under SB9 is inconsistent with this section and is a reduction in the intensity of land use per Government Code section 66300, subdivision (b)(1)(A). The City must remove this section.
5. Sec
tion 17.57.025 D.4 and 16.28.050 L. – Height – The Ordinance restricts SB 9 units to, “no more than one (1) story and shall not exceed sixteen (16) feet in height… a second unit shall not be constructed as a second story on top of an existing unit.” However, the underlying height allowance is two stories and 35 feet [per 17.57.020 (C).] Therefore, this section is inconsistent with Government Code section 65852.21, subdivision (b)(3) and section 66300, subdivision (b)(1)(A) and must be removed from the Ordinance.
6. Sec
tion 17.57.025 D.8. – Owner Occupancy – The Ordinance states, “one (1) of the dwellings on the lot must be the bona fide principal residence of at least one (1) legal owner of the lot containing the dwelling, as evidenced at the time of approval of the two (2) unit residential development… prior to issuance of a
1.d
Packet Pg. 78
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
buil
ding permit, the applicant shall provide evidence that… a covenant has been recorded…” However, Government Code section 65852.21, subdivision (b)(3) states, “A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the underlying zone.” Owner occupancy does not appear to be required in the underlying residential zoning, and therefore, the City must remove this section.
7. Section 17.57.025 D.17. – Affordability Requirement – The Ordinance states, “At least one (1) unit in a two (2) unit residential development shall be income restricted for a period of fifty-five (55) years to provide for lower income households…” As income restriction does not appear to be required in the underlying residential zoning, the requirement is inconsistent with Government Code section 65852.21, subdivision (b)(3) and City must remove this section.
8. Sec
tion 17.57.025 H. – Deed Restriction/Covenant – The Ordinance requires that, “…the property owner shall record a two (2) unit residential development covenant with the County Recorder’s Office…” However, Government Code section 65852.21, subdivision (b)(3) states, “A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the zone a requirement that would constrain future unit development.” Therefore, deed restrictions and affordability covenants are inconsistent with SB 9 and must be removed from the Ordinance.
9. Sec
tion 17.57.025 E. – Objective Design Standards – The Ordinance states, “Any construction of a two (2) unit residential development shall comply with the adopted two (2) unit residential development design standards.” This appears to refer to Section 17.57.020 and thereby applies underlying zoning standards.
However, the underlying zoning standards contain subjective standards (e.g.
Section 17.57.020 F, “shall reflect the character of surrounding homes”) which are inconsistent with the objective standards required by Government Code section 65852.21, subdivision (b)(1) and (j)(2). The City must amend the Ordinance to require only objective standards in the consideration of an SB 9 application.
10. Mul
tiple Sections – Underlying Zoning Standard Inquiries – The Ordinance applies the standards below to SB 9 unit development. However, Government Code 65852.21 states that, “A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the underlying zone.” These standards do not appear to apply to the underlying zone and therefore must be removed from the Ordinance:
1.d
Packet Pg. 79
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
i. Sec
tion 17.57.025 C.5. – Fire Hazard Restrictions – “Where a lot or any portion thereof is located in a high fire hazard severity zone, as defined by the Los Angeles County Fire Department, a two (2) unit residential development shall be prohibited on the lot unless it either fronts a highway and vehicles enter directly from the highway (as defined in Table C-2 of the General Plan Circulation Element), or it has two (2) means of direct vehicular access to a highway that meet the following requirements.”
ii. Section 17.57.025 D.5. – Outdoor Space – “A minimum of six hundred fifty (650) square feet of outdoor yard space shall be provided for each unit in a two (2) unit residential development. Land required for front yard setbacks, or occupied by buildings, driveways, or parking spaces may not be counted in satisfying this outdoor space requirement.” iii. Section 17.57.025 D.12. – Sprinklers – “Two (2) unit residential developments shall be required to provide fire sprinklers.” iv. Section 17.57.025 D.13. – Trash Collection – “Each unit in a two (2) unit residential development shall be required to provide space for three (3) ninety (90) gallon trash carts. Trash carts must be stored out of public view from the street and may not be located within the required front yard setback.”
ADU Findi
ngs
1. St
atutory Numbering - The Ordinance contains several references to code sections that were deleted by SB 477, effective March 25, 2024. These include Government Code sections 65852.2, 65852.22 and 65852.26. The contents of these sections were relocated to Government Code, Title 7, Division 1, Chapter 13 (sections 66310-66342, see Enclosure). The City must amend the Ordinance to refer to the correct Government Code sections.
2. New A
DU Legislation – Please note there is recent ADU Legislation that has passed. The City County should review the changes made to State ADU Law, as a result of this legislation. Assembly and Senate Bills (AB and SB) recently passed affecting State ADU Law include:
• SB 9 (Chapter 510 Statutes of 2025)
• SB 543 (Chapter 520, Statutes of 2025)
• AB 130 (Chapter 22, Statutes of 2025)
• AB 462 (Chapter 491, Statutes of 2025)
• AB 1154 (Chapter 507, Statutes of 2025)
1.d
Packet Pg. 80
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
3. Sec
tion 17.57.040 L.2.a.iii. – “Legally Built” – The Ordinance requires no maximum size for converted units created in a “legally built accessory structure”.
However, Government Code section 66323, subdivision (c) states, "A local agency shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions." Therefore, units created in structures that the City does not consider "legally built accessory structures" may not be precluded by a maximum size requirement. The City must amend the Ordinance to exempt all conversions from size requirements.
4. Sec
tion 17.57.040 L.2.c. – Setbacks – The Ordinance states “All other setbacks shall be subject to the underlying zoning. ADUs shall comply with corner and reverse corner setbacks unless it can be demonstrated that a four (4) foot setback does not create a safety hazard.” There are two issues with this section.
Government Code section 66321, subdivision (b)(3) prohibits “Any requirement for a zoning clearance or separate zoning review [for] front setbacks… for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” The City must include an exception to front setbacks for units 800 square feet or smaller.
Addi
tionally, Government Code section 66314, subdivision (a)(7) states, “No setback shall be required for an existing living area or accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure.” These development standards reference only side and rear setbacks; the terms “corner setback” and “reverse corner setback” do not appear in State ADU Law and these terms may not be applied as a development standard. The City must remove these terms from the Ordinance.
5. Sec
tion 17.57.040 L.2.f. – Parking Exception – The Ordinance creates parking exceptions but omits reference to the conditions described in Government Code section 66332, subdivision (a)(6): “[A local agency shall not impose any parking standards for an ADU . . .] When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this subdivision.” The City must add this exception to become consistent with State ADU Law.
1.d
Packet Pg. 81
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
6. S
ection 17.57.040 L.2.f.ii. – JADUs and Replacement Parking – The Municipal Code states “replacement parking is required for the primary unit where a junior accessory dwelling unit is constructed in an attached garage.” However, Government Code section 66334 states “A junior accessory dwelling unit ordinance adopted pursuant to Section 66333 shall not require additional parking as a condition to grant a permit.” Therefore, the City must remove this parking requirement.
7. S
ection 17.57.040 L.2.g. – Subjective Language – The Ordinance states “Architecture of the accessory dwelling unit shall be compatible with that of the primary dwelling unit…” However, Government Code section 66314, subdivision (b) requires “objective standards on accessory dwelling units”, which are defined in section 66313, subdivision (i) as “standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.” The term “compatible” is subjective, which is inconsistent with State ADU Law. The City must only include subjective standards in this section.
8. S
ection 17.57.040 L.2.l. – Sprinklers – The Ordinance states that ADUs “shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence.” Government Code section 66314, subdivision (d)(12) expands on this to state “The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.” The City must add language to provide for this requirement.
9. Section 17.57.040 L.2.n.i. – Owner Occupancy – The Ordinance states “Any accessory dwelling unit, for which an application is submitted on January 1, 2025, or later, shall be required to be on a lot that is owner-occupied.” However, the owner occupancy allowance that would have become permissible on January 1, 2025, was removed from State ADU Law with the adoption of AB 976 (Chapter 751, Statutes of 2023). Current Government Code section 66315 states “Section 66314 establishes the maximum standards that a local agency shall use to evaluate a proposed accessory dwelling unit on a lot that includes a proposed or existing single-family dwelling. No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer.” Therefore, the City must amend the Ordinance to remove references to owner occupancy.
10. S
ection 17.57.040 L.2.t. – Exempt Unit Height – The Ordinance exempts local development standards from precluding a unit “up to eight hundred (800) square feet that is up to sixteen (16) feet in height.” However, current Government Code section 66321, subdivision (b)(3), as referenced above, does not address height. Therefore, height allowances for attached ADUs must
1.d
Packet Pg. 82
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
be t
he lesser of 25 feet or the height of the primary dwelling, as stated in Government Code section 66321, subdivision (b)(4). The City must amend the Ordinance to provide for the height allowances provided in Government Code section 66321, subdivision (b)(4).
11. Sec
tion 17.57.40 L.3.b.ii. – Unit Mixture – The Ordinance states “Detached accessory dwelling units are not permitted on a lot that includes one (1) or more attached accessory dwelling units.”
How
ever, Government Code section 66323, subdivision (a), states, “Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use to create any of the following: (1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single- family dwelling…(A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single family dwelling or existing space of a single-family dwelling or accessory structure.” Paragraph (2) permits “[o]ne detached, new construction, accessory dwelling unit that does not exceed four- foot side and rear yard setbacks.” The use of the term “any” followed by a list of permitted ADU types indicates that any of these ADU types can be combined on a lot zoned for single family dwellings.
Thi
s permits a homeowner to create one converted ADU; one detached, new construction ADU; and one JADU. Thus, if the local agency approves an ADU that is created from existing (or proposed) space, and the owner subsequently applies for a detached ADU (or vice versa) that meets the size and setback requirements of this section, the local agency cannot deny the application, nor deny a permit for a JADU under this subdivision. This section also requires the ministerial approval of detached ADUs in combination with units created in portions of multifamily primary dwellings that are not used as habitable space.
Addi
tionally, limiting the number of units to one type described in section 66323 would impermissibly constrain an application for a unit subject to section 66323 if a unit subject to section 66314 already exists on the lot. For example, if a new construction detached unit with a size of 1,000 square feet is approved under section 66314, this provision in the Ordinance would preclude the subsequent ministerial approval of a new construction 800 square foot detached unit subject to section 66323, subdivision (a)(2). Therefore, the City must amend the Ordinance to allow both for all ADU combinations described in section 66323 and for at least one unit subject to section 66314 to be combined, in any order, with any unit subject to Government Code section 66323.
12. Sec
tion 17.57.040 L.3.c. – Zoning Nonconformity – The Ordinance states, “Multiple detached dwelling units (e.g., detached condominiums) on a lot shall be treated as single-family residences for purposes of ADUs and shall be
1.d
Packet Pg. 83
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Jason Crawford, Director of Community Development
permi
tted one (1) ADU per lot, as described in this subsection (L)(3). Lots with multiple detached single-family dwellings are not eligible to have JADUs. ”However, multiple single family dwellings on a single lot are considered a zoning nonconformity for the purposes of State ADU Law. Government Code section 66322, section (b) states “The local agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.” As section 66323 describes categories of state-mandated units as being created with either “single family primary dwellings” or “multifamily primary dwellings”, a lot with multiple single family dwellings would be eligible for one converted ADU, one new construction detached ADU up to 800 square feet, and one JADU per lot. The City must amend the Ordinance to remove this restriction.
The City has two options in response to this letter.
1 The City can either amend the
Ordinance to comply with State ADU Law2 or adopt the Ordinance without changes and include findings in its resolution adopting the Ordinance that explain the reasons the City believes that the Ordinance complies with State ADU Law despite HCD’s findings.
3 If the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD must notify the City and may notify the California Office of the Attorney General that the City is in violation of State ADU Law.4
HCD appreciates the City’s efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Mike Van Gorder at [email protected] if you have any questions.
Sinc
erely,
Jami
e Candelaria
Section Chief, ADU Policy
Housing Accountability Unit
1 Gov. Code, § 66326, subd. (c)(1).
2 Gov. Code, § 66326, subd. (b)(2)(A).
3 Gov. Code, § 66326, subd. (b)(2)(B).
4 Gov. Code, § 66326, subd. (c)(1).
1.d
Packet Pg. 84
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW
1.d
Packet Pg. 85
Attachment: 2023 and 2025 HCD Review Letters and City Responses (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW Housing Element
Program HP-2.1
1.e
Packet Pg. 86
Attachment: Housing Element Program HP-2.1 (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING) Santa Clarita – Housing Element June 2023
49 Program HP- 1.14: Sites Identified in Multiple Planning Periods:
Government Code § 65583 requires analysis and justification of the sites included in the sites inventory of the City’ s Housing Element. The Housing Element may only count non -vacant sites included in one previous Housing Element inventory and vacant sites included in two previous Housing Elements if the sites are subject to a program that allows affordable housing by rig ht. Some sites within this Housing Element were used in previous cycles, and this program is included to address the by-right approval requirement. Per Government Code § 65583, the use by -right of these sites during the planning period is restricted to developments in which at least 20 percent of the units in the development are affordable to lower income households. This provision is valid on the condition that these sites have sufficient water, sewer, and other dry utilities available and accessible, or that they are included in an existing General Plan program or other mandatory program or plan to secure sufficient water, sewer, dry utilities supply to support housing development.
Prior to the end of 2022, Community Development Department staff will provide a pop-up “Notice” in Accela for each inventoried parcel subject to these requirements.
The Notice will prompt staff to not require a Conditional Use Permit application for a residential development project on that site if at least 20% of the units are provided as affordable. A training session will be held to ensure that all staff are aware of the by-right allowances for projects providing at least 20% of units as affordable on these specific sites. The Unified Development Code will be amended concurrent with the Housing Element to ensure compliance with Government Code § 65583.2(c).
Timeline: Adopt code amendment with Housing Element. Set up Notice in Accela prior to the end of 2022. Within the first three years of the planning period, ensure staff receives training.
Ongoing.
Responsibility: Community Development Department
Funding: Departmental Budget
Program HP-2.1: Zoning Code Changes for Consistency with State Law City staff will bring forward Municipal Code amendments to address recent changes to state law. Specific Code amendments to ensure compliance include but are not limited to the following:
• Transitional Housing: Allow transitional and supportive housing in all zone districts that allow residential uses, subject to only those restrictions that apply to other residential dwellings of the same type in the same zone. (SB 2, 2007)
• Supportive Housing: Supportive housing, as defined in Government Code Section 65650, to be a by-right use in all zones where multifamily and mixed-uses are permitted. (AB 2162)
1.e
Packet Pg. 87
Attachment: Housing Element Program HP-2.1 (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING) Santa Clarita – Housing Element June 2023
50 • Emergency Shelters: Review development standards for emergency shelters, particularly Standard D, and revise to be objective (SB 2, 2007) • Low Barrier Navigation Centers: to be a use by-right in zones where multifamily and mixed-uses are permitted, including the nonresidential zones where multifamily is permitted. (GC 65660)
• Employee and Agricultural Worker Housing: employee housing for six or fewer employees is to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone.
Employee housing consisting of not more than 12 units or 36 beds are to be considered an agricultural use and permitted in the same manner as other agricultural uses in the same zone (AB 1783)
• ADUs: Update Accessory Dwelling Unit Ordinance pursuant to HCD’s ADU Guidebook, including allowing such units by-right in all residential zones and reduction of side and rear setbacks as well as to reflect changes in these laws made by AB 3182, AB 68, and SB 13.
• Group Homes: Allow group homes for seven or more residents as a permitted use in residential zones. Review current code requirements for all housing types serving people with disabilities for consistency with fair housing laws and make amendments as necessary, including ensuring the number of parking spaces for residential care facilities do not exceed those of other non-group home uses of the same form in the same zone.
• Design Review: Develop Objective Design and Development Standards for multi-family and mixed-use projects, and integrate the standard conditions of approval currently applied through the Development Review process into the objective design and development standards for development projects with residential components.
• Parking: Adopt the parking requirements for multifamily affordable housing from Government Code Section 65915 into the Code to provide clear standards and expectations for potential developers to use the reduced parking requirements without the need to make a separate request.
Additionally, undertake a parking study and consult with not less than four developers with local experience to identify the most appropriate parking ratio and identify any constraints posed by the City’s current parking requirements for market rate multifamily development, especially as it relates to 1 bedroom unit and studios. Based upon the outcome of this study, amend the ordinance to mitigate any identified constraints by July 2025.
Timeline: Review by June 2023; Make necessary amendments to address transitional housing, supportive housing, emergency shelter standards, low barrier navigation centers, employee and agricultural worker housing, ADUs, group homes, and parking requirements for multifamily affordable housing by the end of 2023 Develop Objective Design and Development Standards by 2024 Undertake parking study and amend ordinance by July 2025 Responsibility: Community Development Department
1.e
Packet Pg. 88
Attachment: Housing Element Program HP-2.1 (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING) Santa Clarita – Housing Element June 2023
51 Funding: Departmental Budget
Objective: Facilitate special needs housing, including transitional, supportive, senior, group home, and affordable housing, for 700 households by the end of the planning period.
Program HP-2.2: Updates to Administrative Procedures
Prior to the dates specified in each sub -program below, City staff will update the following administrative procedures and materials:
• SB 35: The City will develop an SB 35 application process, including the pre- application and the procedure that will be used to provide a streamlined ministerial approval process to qualified residential and mixed-use development projects. The written procedures and checklists shall be developed and made available on the City’s website no later than January 1, 2023.
• Development Fees and Transparency Requirements: The City will meet the new transparency and development fees requirements of AB 602 and SB 319 by 1) posting all required information about development standards and fees to an easily accessed location on the City’s website by January 1, 2023; and 2) ensuring that new development impact fee studies and resulting fees comply with the new AB 602 requirements for fee studies prior to initiation of the next fees study in 2024.
• Fee Deferrals: The City will defer fee collection for residential developments until final building inspection or issuance of the certificate of occupancy, whichever occurs first, unless the requirements of Government Code 66007(b) have been met.
• Expedited Processing for Affordable Housing Projects: The City will continue to expedite processing for affordable housing projects, including one-stop preliminary review, concurrent application review, designation of a primary contact, and fast-tracking of construction and grading plan review, permitting and inspection. Promotion of the Expedited Processing program will occur as a part of Program HP-2.10, the Proactive Outreach Program, to be initiated in 2023 and provided as ongoing throughout the 6th planning cycle. • Parking handout: The City will create and publish explanatory documents to delineate between the different parking requirements for different types of multifamily housing projects and mixed-use projects as updated by AB 2345, including those providing affordable units and those located close to transit. • Design Review: The City will review and amend its design review requirements to remove discretionary findings related to site suitability, including Finding 4.
Timeline: SB 35 Procedures: July 1, 2023;
Fee Transparency: July 1, 2023;
1.e
Packet Pg. 89
Attachment: Housing Element Program HP-2.1 (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
NOTICE OF EXEMPTION
TO: FROM:
[X] County Clerk City of Santa Clarita
County of Los Angeles Community Development
12400 E. Imperial Hwy., Rm. 2001 23920 Valencia Boulevard, Suite #302 Norwalk, CA 90650 Santa Clarita, CA 91355
[ ] Office of Planning and Research
1400 Tenth Street
Sacramento, CA 95814
DATE: April 28, 2026
PROJECT NAME: 2026 Accessory Dwelling Unit Ordinance and Housing Law Updates
PROJECT APPLICANT: City of Santa Clarita, Department of Community Development (Contact: Andy Olson; 661.255.4973)
PROJECT LOCATION: Citywide
PROJECT DESCRI PTION: The City of Santa Clarita is updating the Santa Clarita Municipal Code (SCMC), including text amendments to Chapter 16 (Subdivisions) and Chapter 17 (Zoning). The proposed amendments in clude amendments to the City’s accessory dwelling unit (ADU) ordinance, amendments to the City’s two-unit development (Senate Bill 9) ordinance, and amendments to implement Housing Element Program HP-2.1.
This is to advise that the [ ] Director of Community Development [ ] Planning Commission [ X] City Council of the City of Santa Clarita has approved the above project on April 28, 2026. Review of the project by the Department of Community Development found that the project is exempt from the provisions of the California Environmental Quality Act.
EXEMPT STATUS: A Notice of Exemption was prepared for the proposed project. The project is exempt from additional environmental review pursuant to CEQA Guidelines (14 Cal. Code of Regs. § 15000, et seq.) Section 15061(b)(3), the common sense exemption. The activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no pos sibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
Person or agency carrying out the project: City of Santa Clarita, Department of Community Development.
This is to certify that the Notice of Exemption with comments/responses and record of project approval is available for public review at:
City of Santa Clarita
Community Development Department
23920 Valencia Boulevard, Suite 302
Santa Clarita, California 91355
(661) 255-4330
Contact Person/Title: Andy Olson, Associate Planner
Signature:
1.f
Packet Pg. 90
Attachment: Notice of Exemption (ACCESSORY DWELLING UNIT ORDINANCE AND HOUSING LAW UPDATES - FIRST READING)
Agenda Item: 2
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: INTRODUCTION OF AN ORDINANCE CONCERNING
COUNCILMEMBER COMPENSATION PER GOVERNMENT CODE
SECTION 36516
DEPARTMENT: Human Resources and Library Services
PRESENTER: Kenneth W. Striplin
RECOMMENDED ACTION
City Council:
1. Review and discuss City Council compensation and determine increase to be effective after the November 2026 election.
2. Introduce and pass to a second reading an ordinance entitled "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING SECTION 2.04.048 OF THE SANTA CLARITA MUNICIPAL CODE CONCERNING CITY COUNCIL SALARY."
BACKGROUND
Under specific provisions of state law, members of the Santa Clarita City Council are compensated monthly by the City of Santa Clarita (City) for the substantial amount of time and effort they contribute to leading our local government. In addition to participating in regular meetings, City Councilmembers represent the City on regional and statewide boards, commissions, and organizations. Councilmembers also participate in a wide variety of community events and meet with constituents on issues of concern to residents of the City.
Government Code Section 36516(a) sets forth basic provisions that allow regular adjustments to the City Council compensation. Government Code Section 36516.5 requires City Council compensation adjustments to be adopted by the present City Council to be effective after a future City Council election. The Government Code also provides for Councilmember compensation to be increased up to 5 percent for each calendar year from the effective date of the last salary adjustment or up to an amount equal to inflation since January 1, 2024, based on the California 2 Packet Pg. 91
Consumer Price Index, but not to exceed 10 percent per calendar year.
On January 1, 2025, Councilmember compensation was increased to $2,444.69 per month. This increase was equal to 2.5 percent per year for the calendar years 2023 and 2024. This compensation increase was less than the 5 percent per year allowed by Government Code. The City Council has not received a salary adjustment since January 1, 2025, and the earliest the next increase can be effective is January 1, 2027.
Consistent with the Government Code, Councilmember compensation may be reviewed for consideration of a salary adjustment anytime prior to the November 2026 election. A salary adjustment is proposed for a total pay increase of up to 5 percent (not compounded) for the calendar years 2025 and 2026, for a total increase of up to 10 percent, to go into effect January 1, 2027, or after the November 2026 election results are certified by the Los Angeles County Registrar Recorder and the Santa Clarita City Clerk, whichever date is later.
The proposed monthly salary adjustment is as follows:
Current salary Proposed salary up to
$2,444.69 $2,689.16
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The maximum budget impact would be $244.47 per month per Councilmember or an annual increase to the City budget of $14,668.20 for all five Councilmembers. Should the City Council approve a lesser percentage adjustment, the adopted budget will reduce the fiscal impact accordingly. The annual percent change for the Consumer Price Index (CPI) for the Los Angeles Area since the last Council salary adjustment is 3 percent for January 2025. The annual percent change for California Consumer Price Index (CCPI) for 2025-26 is 3.1 percent. The annual percent change for CCPI for 2026-27 is not yet available.
ATTACHMENTS
Ordinance
2 Packet Pg. 92
ORDINANCE NO. 26-___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, AMENDING SECTION 2.04.048
OF THE SANTA CLARITA MUNICIPAL CODE
CONCERNING CITY COUNCIL SALARY
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That Section 2.04.048 is amended to read as follows:
"2.04.048 City Council Salaries
The salary for City Councilmembers shall be increased as provided for in Government Code Section 36516 from the amount of $2,444.69 to $X,XXX.XX per month effective on January 1, 2027 or after the November 2026 election results are certified by the Los Angeles County Registrar Recorder and the Santa Clarita City Clerk, whichever date is later. This salary increase represents a total pay increase of X percent (not compounded) for the calendar years 2025 and 2026, for a total increase of X percent. Such salary shall be payable on a monthly basis and in the same manner as salaries are paid to other officers and employees of the City of Santa Clarita."
SECTION 2. This ordinance shall take effect as set forth in Government Code section 36937, but the date set forth in section 2.04.048 reflects that the change in salary will not apply to any Councilmembers during their current term of office. Instead it shall apply after one or more members of the council has become eligible for such change in salary by virtue of commencing a new term of office, at which time it shall apply to all Councilmembers.
SECTION 3. The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law.
PASSED, APPROVED, AND ADOPTED this _ day of ____, 2026.
______________________________
MAYOR
ATTEST:
CITY CLERK
DATE:________________________
2.a
Packet Pg. 93
Attachment: Ordinance (INTRODUCTION OF AN ORDINANCE CONCERNING COUNCILMEMBER COMPENSATION PER GOVERNMENT CODE
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance 26- was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the __th day of _______ 2026. That thereafter, said ordinance was duly passed and adopted at a regular meeting of the City Council on the __th day of ______ 2026, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance No. 26- and was published in The Signal newspaper in accordance with State Law (G.C. 40806).
______________________________
CITY CLERK
2.a
Packet Pg. 94
Attachment: Ordinance (INTRODUCTION OF AN ORDINANCE CONCERNING COUNCILMEMBER COMPENSATION PER GOVERNMENT CODE
Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: ARTS MASTER PLAN 2035: VISION AND ACTION
DEPARTMENT: Economic Development
PRESENTER: McKenzie Bright
RECOMMENDED ACTION
City Council receive report and adopt the Arts Master Plan 2035: Vision and Action.
BACKGROUND
The City Council adopted the City of Santa Clarita’s (City) first ten-year Arts Master Plan in March 2016. The 2016 plan identified 41 recommendations across 10 thematic categories, and added 20 recommendations in a 2021 update. The plan was organized into three themes:
enhancing cultural vitality in the community, strengthening cultural support systems, and fostering greater diversity and inclusion. Over the last ten years, 54 of these recommendations have been successfully addressed, while 4 are in the early stages of development and three have been deferred from current priority lists.
To assist in developing the next ten-year Arts Master Plan, the City Council awarded a contract to Keen Independent Research during its regular meeting on January 14, 2025, to evaluate the City’s progress, collect community feedback, and assist staff in developing new action items.
The new Arts Master Plan outlines 16 recommendations across five thematic categories. The recommendations and thematic elements are outlined below:
1. Cultivate the Arts Throughout Santa Clarita
1.1. Continue to develop Old Town Newhall as a premier Arts and Entertainment District
1.2. Introduce resources in areas without arts and cultural assets
1.3. Elevate the arts as a valued City service and key quality of life resource
1.4. Explore supporting the development of additional arts and cultural hubs beyond the Old Town Newhall Arts and Entertainment District
2. Serve as a Cross-Pollinator of Community Arts Efforts
2.1. Advocate for higher education institutions to connect with Santa Clarita residents and 3 Packet Pg. 95
stakeholders
2.2. Encourage arts education and cultural experiences in Santa Clarita Valley
2.3. Partner with local historical organizations on preservation efforts of Santa Clarita Valley cultural attractions
2.4. Track the growth of creative industries
3. Support Artists and Arts Nonprofits
3.1. Promote Santa Clarita as a preferred place for creatives to live and work
3.2. Support the development and sustainability of local nonprofits
4. Review Arts Governance, Policies, and Procedures
4.1. Continue to update the municipal code to reflect best practices
4.2. Review the guiding vision statement for the arts and measure progress
4.3. Promote opportunities for civic engagement in City arts processes to ensure diversity of input, transparency, and equity
4.4. Review public art documents
5. Plan for Arts Venues, Spaces, and Resources
5.1. Integrate arts development throughout City planning
5.2. Examine the feasibility of renovating or building new arts spaces
On March 12, 2026, the Arts Commission recommended that the City Council adopt the Arts Master Plan 2035: Vision and Action, attached as reading file material.
The implementation of the Arts Master Plan will be led by the City, with ongoing collaboration with community organizations including school districts, higher education institutions, businesses, local arts organizations, and others.
ALTERNATIVE ACTION
Other action as determined by the City Council
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Arts Master Plan 2035: Vision and Action (available in the City Clerk's Reading File) 3 Packet Pg. 96
CITY OF SANTA CLARITA
City Council
Special Meeting
~Minutes~
Tuesday, March 24, 2026 5:30 PM City Council Chambers
CALL TO ORDER
Mayor Weste called to order the Special Meeting of the City Council at 5:30 p.m.
ROLL CALL
All Councilmembers were present.
PUBLIC PARTICIPATION FOR AGENDIZED ITEMS
Addressing the City Council was Douglas (no last name provided) regarding mobile home park litigation concerns.
Joseph Montes, City Attorney, stated that the pending litigation item had no connection to mobile home parks.
CLOSED SESSION
Joseph Montes, City Attorney, advised of the need to conduct a Closed Session for the purpose of holding a:
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) - one matter (see attached letter)
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) - one matter
RECESS TO CLOSED SESSION - TO BE HELD IN THE CARL BOYER ROOM Mayor Weste recessed the meeting to Closed Session at 5:31 p.m.
RECONVENE TO OPEN SESSION
Mayor Weste reconvened the meeting to Open Session at 6:04 p.m.
CITY ATTORNEY ANNOUNCEMENT
Joseph Montes, City Attorney, stated that with respect to the first closed session agenda item, in light of the environmental issues raised and with the unanimous direction of the City Council, staff is going to take another look at this item, rather than schedule it for a second reading at this time.
4 Packet Pg. 97
Minutes Acceptance: Minutes of Mar 24, 2026 5:30 PM (Consent Calendar)
ADJOURN
Mayor Weste adjourned the Special Meeting at 6:05 p.m.
______________________________________
MAYOR
ATTEST:
______________________________________
CITY CLERK
4 Packet Pg. 98
Minutes Acceptance: Minutes of Mar 24, 2026 5:30 PM (Consent Calendar)
CITY OF SANTA CLARITA
City Council
Regular Meeting
Joint Meeting with
Board of Library Trustees
Hereinafter the titles Mayor, Mayor Pro Tem, Councilmember, City Manager, City Attorney, and City Clerk may be used also to indicate Mayor/Chair/President, Mayor Pro Tem/Vice-Chair/Vice President, City Manager/Executive Director, City Attorney/Counsel, and City Clerk/Secretary ~Minutes~
Tuesday, March 24, 2026 6:00 PM City Council Chambers
INVOCATION
Councilmember Gibbs delivered the invocation.
CALL TO ORDER
Mayor Weste called to order the Joint Regular Meeting of the City Council and Board of Library Trustees at 6:08 p.m.
ROLL CALL
All Councilmembers were present.
FLAG SALUTE
Councilmember Gibbs led the flag salute.
EXECUTIVE MEETING
This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting.
Councilmember Gibbs recused himself from discussing and voting upon Item 3 due to receiving a campaign donation of over $500 in the past 12 months from Jill Mellady, who is involved with this item, citing the Levine Act. Mayor Weste pulled the item for a separate vote.
AWARDS AND RECOGNITIONS
Councilmember Miranda expressed his appreciation for servicemembers who fought in the Vietnam War, acknowledging their contributions and sacrifices during the conflict; announced that the City proclaims March 29, 2026, as National Vietnam War Veterans Day; and invited members of the Valencia Chapter of Vietnam Veterans of America and the Alliklik Chapter of 5 Packet Pg. 99
Minutes Acceptance: Minutes of Mar 24, 2026 6:00 PM (Consent Calendar)
the Daughters of the American Revolution to the dais to accept the proclamation and take a photo.
Mayor Weste shared that the City’s Urban Forestry team is responsible for the care of more than 95,000 trees throughout the community and that the City was named Tree City USA for the 36th consecutive year; invited the community to participate in Tree-mendous Arbor Day event on April 11; announced that the City proclaims April 24, 2026, as Arbor Day in the City of Santa Clarita; and invited members of the Urban Forestry team to the dais to accept the proclamation and take a photo.
PUBLIC PARTICIPATION
There were no requests to speak.
COMMITTEE REPORTS/COUNCILMEMBER COMMENTS
Mayor Pro Tem Ayala thanked the government and Los Angeles Consulate of Mexico for being one of 15 Los Angeles area city officials invited to discuss economic development and tourism.
Mayor Pro Tem Ayala also thanked Alessandro Concas for the invitation to the Generation Youth Podcast.
Councilmember Gibbs congratulated Councilmember Miranda and his daughter, Eva, on the Met Gala event; thanked Trinity Classical Academy for their debate event; and requested an adjournment in memory of Violet Uzawa Dorio who lived to 104 years old.
Councilwoman McLean commented on the two remaining One Story One City events, celebrating this year's book, The Music Shop; attended the Hart Games at Valencia High School with Councilmember Miranda; and spoke of expecting her first great-grandchild. Councilwoman McLean ended her comments by announcing Art Hop, a free, family-friendly spring festival celebrating youth creativity held at William S. Hart Park.
Councilmember Miranda thanked Councilmember Gibbs for his comments and attendance at Met Gala; spoke of the sold-out 4th Annual Met Gala fundraiser for metastatic breast cancer thrivers; thanked the communities of Santa Clarita and Ventura for their donations and inspiration; spoke of his new book, Faith that Burns Bright, a spiritual transition story; and shared that he recently became a great grandfather.
Mayor Weste commented upon the tire recycling event that allows residents to safely dispose of old tires at no cost while helping keep the community clean, reducing waste, and helping to prevent mosquitoes; shared that the Cowboy Festival will be at Hart Park in April; spoke of the hundreds of animals, now housed across all seven Los Angeles County Animal Care Centers, rescused in a recent large-scale animal seizure, and requested that the community help by adopting a pet and making a donation, if possible.
5 Packet Pg. 100
Minutes Acceptance: Minutes of Mar 24, 2026 6:00 PM (Consent Calendar)
CONSENT CALENDAR
Councilmember Miranda moved to approve the Consent Calendar, excluding item 3.
RESULT: APPROVED [UNANIMOUS]
MOVER: Bill Miranda, Councilmember
SECONDER: Marsha McLean, Councilmember
AYES: Weste, Ayala, Gibbs, McLean, Miranda
ITEM 1
APPROVAL OF REGULAR MEETING MINUTES – The minutes are submitted for approval.
RECOMMENDED ACTION: City Council approve the minutes of the March 10, 2026, Regular Meeting.
ITEM 2
CHECK REGISTER NO. 06
Check Register No. 06 for Period 02/06/26 through 02/19/26 and 02/26/26. Electronic Funds Transfers for the Period 02/09/26 through 02/20/26.
RECOMMENDED ACTION:
City Council approve and ratify for payment the demands presented in Check Register No. 06.
ITEM 3
Item 3 was pulled for a separate vote.
ITEM 4
ANNUAL PORTABLE RESTROOMS AND FENCING CONTRACT
Consider awarding a contract for Citywide portable restrooms and temporary fencing services for various City parks, facilities, and events.
RECOMMENDED ACTION:
City Council:
1. Award a one-year contract to Andy Gump, Inc., for Citywide portable sanitation and temporary fencing in the amount of $96,384, and authorize a 10 percent contingency of $9,638, for a total contract amount not to exceed $106,022.
2. Authorize the City Manager or designee to execute up to three additional one-year renewal options not to exceed the annual contract amount, plus any adjustments consistent with the appropriate Consumer Price Index, upon request of the contractor, and contingent upon the appropriation of funds by the City Council in the annual budget for such fiscal year.
3. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.
ITEM 5
LIBRARY MATERIAL VENDOR CONTRACTS
The purpose of this item is to consider awarding a contract and increase spending authority for physical and digital materials for the Santa Clarita Public Library. 5 Packet Pg. 101
Minutes Acceptance: Minutes of Mar 24, 2026 6:00 PM (Consent Calendar)
RECOMMENDED ACTION:
City Council:
1. Award a one-year contract to Ingram Library Services LLC (Ingram) for physical books and materials for the Santa Clarita Public Library for a total contract amount not to exceed $800,000.
2. Approve a contract authorization increase to the City’s existing agreement with Midwest Tape (Hoopla) to provide audiobooks, eBooks, movies, and music in the amount of $30,000, for a total contract amount not to exceed $79,999.
3. Authorize the City Manager, or designee, to execute up to two additional one-year renewal options for the above-mentioned agreements, not to exceed the annual contract amount, plus an adjustment consistent with the appropriate Consumer Price Index, upon request of the contractor.
4. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
ITEM 6
2025-26 OVERLAY AND SLURRY SEAL PROGRAM, OVERLAY A AND B, PROJECT M0164 - PLANS, SPECIFICATIONS, AND CONSTRUCTION CONTRACTS This item considers awarding construction contracts for the 2025-26 Overlay and Slurry Seal Program - Overlay A and Overlay B projects. The annual overlay and slurry seal projects are an integral part of the City of Santa Clarita’s pavement management program. Each year, streets are evaluated and identified for needed pavement preservation and rehabilitation treatments.
RECOMMENDED ACTION:
City Council:
1. Approve the plans and specifications for the 2025-26 Overlay and Slurry Seal Program – Overlay A, Project M0164.
2. Approve the plans and specifications for the 2025-26 Overlay and Slurry Seal Program – Overlay B, Project M0164.
3. Find the 2025-26 Overlay and Slurry Seal Program is exempt from review under the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Article 19 Section 15301.
4. Award a construction contract to Vance Corporation for the 2025-26 Overlay and Slurry Seal Program – Overlay A project in the amount of $7,549,302, and authorize a contingency in the amount of $1,509,860, for a total contract amount not to exceed $9,059,162.
5. Award a construction contract to All American Asphalt for the 2025-26 Overlay and Slurry Seal Program – Overlay B project in the amount of $1,898,546, and authorize a contingency in the amount of $379,709, for a total contract amount not to exceed $2,278,255. 5 Packet Pg. 102
Minutes Acceptance: Minutes of Mar 24, 2026 6:00 PM (Consent Calendar)
6. Award a professional services contract to Twining, Inc., to provide project inspection, materials testing, and construction management support services for the 2025-26 Overlay and Slurry Seal Program, in the amount of $1,287,125, and authorize a contingency in the amount of $128,713, for a total contract amount not to exceed $1,415,838.
7. Award a professional services contract to Hunsaker and Associates, Los Angeles, Inc., to provide surveying and monument preservation services for the 2025-26 Overlay and Slurry Seal Program, in the amount of $133,000, and authorize a contingency in the amount of $13,300, for a total contract amount not to exceed $146,300.
8. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
ITEMS PULLED FOR SEPARATE VOTE
ITEM 3
CONTRACT FOR STATE OF THE CITY NEWSLETTER MAILING AND PRINTING Consider awarding a contract to Mellady Direct Marketing for printing and mailing of the biannual State of the City newsletter.
RECOMMENDED ACTION:
City Council:
1. Award a three-year contract to Mellady Direct Marketing for the printing and mailing of the City of Santa Clarita State of the City newsletter, in an amount not to exceed $103,159.
2. Authorize the City Manager or designee to execute up to two additional one-year renewal options beginning in year four, not to exceed the annual contract amount, plus an adjustment consistent with the appropriate Consumer Price Index and contingent upon the appropriation of funds by the City Council in the annual budget for such fiscal year.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
RESULT: APPROVED [4 TO 0]
MOVER: Marsha McLean, Councilmember
SECONDER: Patsy Ayala, Mayor Pro Tem
AYES: Laurene Weste, Patsy Ayala, Marsha McLean, Bill Miranda RECUSED: Jason Gibbs
PUBLIC PARTICIPATION II
No additional requests to speak were received.
5 Packet Pg. 103
Minutes Acceptance: Minutes of Mar 24, 2026 6:00 PM (Consent Calendar)
ADJOURNMENT
Mayor Weste adjourned the Regular Meeting in memory of Violet Uzawa Dorio at 6:40 p.m. ______________________________________
MAYOR
ATTEST:
______________________________________
CITY CLERK
5 Packet Pg. 104
Minutes Acceptance: Minutes of Mar 24, 2026 6:00 PM (Consent Calendar)
Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: CHECK REGISTER NO. 07 and 08
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
RECOMMENDED ACTION
City Council approve and ratify for payment the demands presented in Check Register No. 07 and 08.
BACKGROUND
Check Register No. 07 for the Period 02/20/26 through 03/05/26 and 03/12/26 in the aggregate amount of $10,562,799.51 inclusive of Electronic Funds Transfers for the Period 02/23/26 through 03/06/26 in the aggregate amount of $2,380,225.33.
Check Register No. 08 for the Period 03/06/26 through 03/19/26 and 03/26/26 in the aggregate amount of $8,022,048.31 inclusive of Electronic Funds Transfers for the Period 03/09/26 through 03/20/26 in the aggregate amount of $1,100,020.49.
FISCAL IMPACT
Adequate funds are available in the budgeted expenditure accounts to support the Check Register payments.
ATTACHMENTS
Memo - Check Register No. 07
Memo - Check Register No. 08
Check Register No.07 (available in the City Clerk's Reading File) Check Register No. 08 (available in the City Clerk's Reading File) 6 Packet Pg. 105
6.a
Packet Pg. 106
Attachment: Memo - Check Register No. 07 (Check Register No. 07, & 08)
6.a
Packet Pg. 107
Attachment: Memo - Check Register No. 07 (Check Register No. 07, & 08)
6.a
Packet Pg. 108
Attachment: Memo - Check Register No. 07 (Check Register No. 07, & 08)
6.b
Packet Pg. 109
Attachment: Memo - Check Register No. 08 (Check Register No. 07, & 08)
6.b
Packet Pg. 110
Attachment: Memo - Check Register No. 08 (Check Register No. 07, & 08)
6.b
Packet Pg. 111
Attachment: Memo - Check Register No. 08 (Check Register No. 07, & 08)
Agenda Item: 7
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: CITY OF SANTA CLARITA'S FISCAL YEAR 2026-27 STATEMENT
OF INVESTMENT POLICY
DEPARTMENT: Administrative Services
PRESENTER: German Lopez
RECOMMENDED ACTION
City Council adopt the City of Santa Clarita's Fiscal Year 2026-27 Statement of Investment Policy, and direct staff to submit the policy to the Association of Public Treasurers of the United States and Canada for certification in their annual award program.
BACKGROUND
Pursuant to California Government Code Section 53646, the Treasurer of the City of Santa Clarita (City) may annually present the City's Investment Policy (Policy) to the City Council to reaffirm or make any changes to the existing policy. The Policy has been submitted to the Association of Treasurers United States and Canada (APT US&C) every year for the past 31 years and has received the Certificate of Excellence for each of these years.
The Policy provides guidelines for the management of the City's cash and the investment of its idle funds. The Policy affords the City various investment opportunities, as long as the investment is deemed prudent under the Uniform Prudent Investor Act (California Probate Code, Article 2.5, Sections 16045-16054) and is allowable under the legislation of the State of California (Government Code Section 53600, et seq.). The Policy's guidelines emphasize the importance of safety and liquidity first. The yield on the City's investment portfolio is secondary to these first two objectives.
As part of the review process, the APT US&C and the California Debt and Investment Advisory Commission (CDIAC) may recommend changes that are then incorporated into the next year's update. For this update, the recommendations are as follows.
Senate Bills 858 (SB 858) and 595 (SB 595) took effect January 1, 2026, and made one update to Government Code Section 53601 extending the maximum maturity for prime quality commercial 7 Packet Pg. 112
paper from 270 days to 397 days. Staff recommends updating language on the Statement of Investment Policy Appendix A-Section 8-Commercial Paper, Appendix B-Commercial Paper- Maximum Maturity Constraints, and Appendix C-Commercial Paper to reflect these changes.
The updated sections will align the City’s Policy with current Government Code.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
None by this action.
ATTACHMENTS
Santa Clarita Investment Policy FY 26-27
7 Packet Pg. 113
CI
TY OF SANTA CLARITA
Statement of Investment Policy
Fiscal Year 2026-27
7.a
Packet Pg. 114
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 2 TABLE OF CONTENTS
1.0 MISSION STATEMENT 4
2.0 SCOPE 4
3.0 PRUDENCE 4
4.0 OBJECTIVES 5
5.0 DELEGATION OF AUTHORITY 5
6.0 ETHICS AND CONFLICTS OF INTEREST 6
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS 6
8.0 AUTHORIZED AND SUITABLE INVESTMENTS 7
9.0 INVESTMENT POOLS/MUTUAL FUNDS 8
10.0 COLLATERALIZATION 8
11.0 SAFEKEEPING AND CUSTODY 9
12.0 DIVERSIFICATION 9
13.0 MAXIMUM MATURITIES 10
14.0 INTERNAL CONTROL 10
15.0 PERFORMANCE STANDARDS 11
16.0 REPORTING 11
17.0 PORTFOLIO REBALANCING 12
18.0 CREDIT DOWNGRADE 12
19.0 INVESTMENT POLICY ADOPTION 12
7.a
Packet Pg. 115
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 3 AP
PENDICES
A. AUTH
ORIZED INVESTMENTS 13
B. SUM
MARY OF AUTHORIZED INVESTMENTS 19
C. GLOS
SARY OF TERMS 20
D. BANK/
SAVINGS AND LOAN QUESTIONNAIRE AND 27
CERTIFICATION
E. BROKE
R/DEALER QUESTIONNAIRE AND 31
CERTIFICATION
F. INVE
STMENT POOL QUESTIONNAIRE 34
G. LIST O
F PRIMARY GOVERNMENT SECURITIES 38
DEALERS
7.a
Packet Pg. 116
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 4 CITY OF SANTA CLARITA
Statement of Investment
Policy Fiscal Year 2026-27
1.0 MISSION STATEMENT
It is
the policy of the City of Santa Clarita (City) to invest public funds in a manner which will provide the maximum security with best investment return, while meeting the daily cash flow demands of the City and conforming to all state/province and loca l statutes governing the investment of public funds.
2.0 SCOPE
Thi
s Investment Policy applies to all investment activities and financial assets of the City. These funds are accounted for in the City of Santa Clarita’s Audited Annual Financial Report and include:
2.1.1 Ge
neral Fund
2.1.2 Special Revenue Funds
2.1.3 Debt Service Funds
2.1.4 Capital Project Funds
2.1.5 Enterprise Funds
2.1.6 Internal Services Funds
2.1.7 Trust and Agency Funds
2.1.8 Any new funds created by the City Council unless specifically exempted
2.2 Funds E xcluded From This Policy:
2.2.1 R
etirement Funds
2.2.2 Pension Funds
Bond funds shall be invested in the securities permitted pursuant to the City Council approved bond documents. If the bond documents are silent as to the permitted investments, bond funds will be invested in the securities permitted by this Investment Policy. Notwithstanding the other provisions of this Investment Policy, the percentage, and term limitations listed elsewhere in th is Investment Policy do not apply to bond funds.
3.0 PRUDENCE
Whe
n investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, investment officials shall act with care, sk ill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City , that a prudent person acting in a like capacity and familiarity
7.a
Packet Pg. 117
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 5 w
ith those matters w ould use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.
T
he standard of prudence to be used by investment officials shall be the “ prudent investor ” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in acco rdance with written procedures and this Investment Policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
4.0 OBJECTIVES
T
he primary objectives, in priority order, of the City’s investment activities shall be:
4.1 Safety: Safety of principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
4.2 Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
4.3 Return on Investment : The City ’s investment portfolio shall be managed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.
5.0 DELEGATION OF AUTHORITY
P
ursuant to City of Santa Clarita Ordinance 87 -2 (Sec. 2.15.030 Santa Clarita Municipal Code), the Treasurer is authorized to invest the City's Funds (Funds) in accordance with California Government Code Sections 16429.1, 53600 et seq., and 53684et seq. (All subsequent references to code sections refer to the California Government Code unless otherwise indicated).
I
n the absence of the City Treasurer (Treasurer), the investment of the Funds will be delegated to the City Manager. In the absence of the City Treasurer and the City Manager, the investment of the Funds will be delegated to the Assistant City Manager.
T
he City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the City Treasurer. Prior to investing, the cash flow requirements of the City will be considered , and only securities that will not adversely affect the liquidity of the investment portfolio will be purchased.
7.a
Packet Pg. 118
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 6 U
nless otherwise specifically designated by the City Council, the only officials authorized to undertake investment transactions on behalf of the City are the:
City Treasurer
City Manager
Assistant City Manager
Mayor
F
urther, no person may engage in an investment transaction except as provided under the terms of the City’s Statement of Investment Policy.
A
s authorized by the City Council, the City may engage the services of an investment advisor to assist in the management of the City’s investment portfolio in a manner consistent with this Investment Policy and the City’s investment objectives and direction from the City Treasurer. The advisor may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. The advisor may not take possession of the City’s cash or securities. The advisor must be registered under the Investment Advisers Act of 1940.
5.1 Investment Procedures: The City Treasurer shall establish a separate written investment procedures manual for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, master repurchase agreements, wire transfer agreements, banking service contracts, cash flow forecasting , and collateral and/or depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
6.0 ETHICS AND CONFLICTS OF INTEREST
T
he Treasurer and other employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisio ns. The Treasurer and investment employees shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of their entity.
T
he Treasurer and investment employees are required to file annual disclosure statements as required by the Fair Political Practices Commission (FPPC). During the course of the year, if there is an event subject to disclosure that could impair the ability of the Treasurer or investment employees to make impartial decisions, the City Council will be notified in writing within 10 days of the event.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
7.a
Packet Pg. 119
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 7 T
he City shall transact business only with banks, savings and loans, and registered investment securities dealers. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker/dealer, as defined in Section 25004 of the Corporation Code, who is a member of the Financial Industry Regulatory Authority, or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a Federal or State Association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a primary dealer by the Federal Reserve Bank.
T
he Treasurer's staff shall investigate all institutions that wish to do business with the City, in order to determine if they are adequately capitalized, make markets in securities appropriate to the City's needs, and agree to ab ide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement and complete the appropriate City questionnaire. See Appendix D and Appendix E.
T
he City Treasurer shall conduct an annual review of the financial condition of all approved financial institutions and broker/dealers in order to determine whether they continue to meet the City’s guidelines for qualifications as defined in this section. In addition, the City shall give all approved broker/dealers a copy of the City’s current Statement of Investment Policy on an annual basis. The City Treasurer shall keep current audited annual financial sta tements on file for each approved financial institution and broker/dealer with which the City does business . All financial institutions and broker/dealers for investment transactions must supply the Treasurer with the following: audited financial statements, completed broker/dealer questionnaire, and a certificate of having read the City’s investment policy.
I
f the City has contracted with an investment advisor to provide investment services, the investment advisor may use their own list of approved issuer s, brokers/dealers and financial institutions to execute transactions on the City’s behalf.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS
F
rom a governing body perspective, special care must be taken to ensure that the list of instruments includes only those allowed by law and those that local investment managers are trained and competent to handle. The investments set forth in this section are authorized investments pursuant to Sections 16429.1, 53600 et seq., and 53638 of the Government Code and are authorized investments for the City subject, however, to the prohibitions set forth in Section
8.2 of this Investment Policy. See Appendix B for a summary of this section.
S
ee Appendix A for a listing of authorized types of investment securities.
8.1 Master Repurchase Agreement: Repurchase agreements and Reverse Repurchase agreements are legal and authorized by this policy. If the City chooses to invest in Repurchase agreements or Reverse Repurchase agreements, a Master Repurchase Agreement must be signed with the bank or dealer prior to any Repurchase or Reverse Repurchase transactions.
7.a
Packet Pg. 120
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 8 8.2 P rohibited Investments and Transactions: California Government Code Section 53601.6 prohibits local agencies from investing in certain instruments, including the following:
I nverse floaters, range notes, or interest -only strips that are derived from a pool of mortgages.
Any security that could result in zero interest accrual if held to maturity , except as authorized by Code Section 53601.6. However, the City may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to City investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a -1, and following) that are authorized for investment pursuant to Government Code Section 53601 (l).
9.0 INVESTMENT POOLS/MUTUAL FUNDS
A
thorough investigation of any pooled investment funds, including mutual funds as defined in Appendix A, is required prior to investing, and on a continual basis. To accomplish this, a questionnaire (see Appendix F ) is to be used to evaluate the suitability of the pooled fund. The questionnaire will answer the following general questions:
A description of eligible investment securities and a written statement of investment policy and objectives.
A description of interest calculations , how it is distributed , and how gains and losses are treated.
A description of how the securities are safeguarded (including the settlement processes), and how often are the securities priced and the program audited. A description of who may invest in the program, how often, an d what size deposit and withdrawal are allowed.
A schedule for receiving statements and portfolio listings. Are reserves, retained earnings, e.g. utilized by the pool/fund? A fee schedule, and when and how it is assessed.
Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
10.0 COLLATERALIZATION
C
alifornia Government Code, Sections 53652 through 53667, requires depositories to post certain types and levels of collateral for public funds above the Federal Deposit Insurance Corporation (FDIC) insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non-negotiable time certificates of deposit).
C
ollateralization will also be required on two other types of investments: collateralized certificates of deposit and repurchase (and reverse) agreements. The collateralization level required fo r collateralized certificates of deposits shall be at least equal to that required by Section 53652.
The collateralization level for repurchase agreements will be 102 percent of market value of principal and accrued interest , and the value shall be adjusted no less than quarterly. The City requires the collateral for repurchase agreements to be in the form of U.S. Treasuries.
7.a
Packet Pg. 121
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 9 U
nless otherwise required by Code, collateral will be held by an independent third party with whom the entity has a current written custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted.
11.0 SAFEKEEPING AND CUSTODY
T
o protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all deliverable securities owned by the City shall be held in safekeeping by the City's custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement. Such custodial bank must be a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System. Collateral for repurchase agreements will be held by a third party custodian under the terms of a Securities Industry and Financial Markets Association (SIFMA) master repurchase agreement.
A
ll security transactions entered into by the City shall be conducted on a delivery -versus- payment (DVP) basis. This procedure ensures that securities are deposited with the third party custodian prior to the release of funds. Securities will be held by a third party custodian designated by the Treasure r and as evidenced by safekeeping receipts with a written custodial agreement.
Investments in the State or County Pool (as described in Appendix A (15 & 16)) or money market mutual funds (as described in Appendix A (12)) or Local Government Investment Pool s (as described in Appendix A (17) ) of this Investment Policy are undeliverable and not subject to delivery or third party safekeeping. The Treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the Treasurer.
I
nvestment trades, as they occur but no more than daily, shall be verified against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement shall be reconciled with the month-end portfolio holdings. On an annual basis, the external auditor confirms investment holdings.
12.0 DIVERSIFICATION
T
he City will diversify its investments by security type, institution, and maturity. The amount invested in any one security type will be limited to the perc entages specified in this Policy.
Furthermore, with the exception of U.S. Treasury, Federal Agency, supranational securities, authorized pools/money market funds , repurchase agreements, and collateralized certificates of deposit, the amount invested in the securities of any one issuer across the other security types will not exceed 5 percent of the City’s total investment portfolio. Every effort will be made to:
Limit investments to avoid over -concentration in securities from a specific issuer or business sector.
Limit investments in securities that have higher credit risks. Invest in securities with varying maturities.
7.a
Packet Pg. 122
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 10 C
ontinuously invest a portion of the portfolio in readily available funds such as local government investment pools (LAIF), and money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.
13.0 MAXIMUM MATURITIES
T
o the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. The City will not directly invest in securities maturing more than five (5) years from the date of settlement , unless the City Council has granted express authority to make tha t investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment . Any investment that is further limited is noted in Appendix A, Authorized Investments. Also see Appendix G for a one-page recap of maximum maturity by investment vehicle. The weighted average maturity of the investment portfolio will be limited to three years or less. Investments may be sold prior to maturity for cash flow, appreciation purposes, or in order to limit losses; however, no investment shall be made based solely on earnings anticipated from capital gains.
B
ecause of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds.
R
eserve funds may be invested in securities exceeding five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds.
14.0 INTERNAL CONTROL
T
he City Treasurer shall be responsible for ensuring that all investment transactions comply with the City’s Statement of Investment Policy and for establishing internal controls that are designed to prevent losses due to fraud, negligence, and third-party misrepresentation.
In
ternal controls deemed most important shall include: avoidance of collusion; separation of duties and administrative controls; separating transaction authority from accounting and record keeping; custodial safekeeping; clear delegation of authority; management approval and review of investment transactions; specific limitations regarding securities loss and remedial action; documentation of investment transactions and strategies; and monitoring of results.
T
he City Treasurer shall establish an annual process of independent review by an external audit firm. The external auditor shall review the management of the City’s investment program in terms of compliance with the internal controls previously established.
T
he external auditor, serving as an inde pendent reviewer, will review and verify the City's investment activity, holdings, and compliance with this Investment Policy on an annual basis and submit a report to the City Council relating thereto. The external auditor shall maintain errors and omissions insurance coverage.
7.a
Packet Pg. 123
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 11 A
n Investment Committee consisting of City officials and staff shall be responsible for reviewing the City Investment reports, transactions, policies, procedures, and strategies, no less than on a bi- monthly basis.
15.0 PERFORMANCE STANDARDS
T
he investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and cash flow needs.
15.1 Performance Benchmark: The City’s investment strategy is active. Given this strategy, the Treasurer will identify an appropriate benchmark(s) to determine whether market rate of return is being achieved. The Treasurer shall select benchmarks that are comparable to t he portfolio’s investment duration, e.g. the two-year Treasury bill and a market index of government securities with maturities from one to five years, such as the Bank of America Merrill Lynch US Issuers 1-5 Year AAA-A Corporate/Government Index.
16.0 REPORTING
P
er Section 53646 of the Government Code, the Treasurer may annually render to the City Council and the Investment Committee (consisting of the City Manager, Assistant City Manager, and the City Treasurer) a statement of investment policy which the City Council shall consider at a public meeting. As a best practice, the policy will be reviewed on an annual basis by the Treasurer and the Investment Committee. Any investment held at the time this Investment Policy is adopted that does not meet the guidelines of this policy shall be exempted from the requirements of this policy.
At maturity or liquidation, however, such monies shall be reinvested only as provided by this policy.
S
ection 53646 of the Government Code states that the Treasurer may render a report (Report) to the City Council, City Manager, the Investment Committee , and the internal auditor (if any) containing detailed information on all securities, investments, and monies of the City. As a good reporting practice, the Report will be subm itted on a monthly basis and provided to the Council within 30 days following the end of the month.
Schedules in the monthly report should include the following:
The type of investment, name of the issuer, date of maturity, the weighted average maturity, the par, and cost of all funds invested subject to this policy. Coupon, discount, or earnings rate.
Percentage of the portfolio represented by each investment category. A list of investment transactions.
The market value with the source of the market valuation for all securities held by the City, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund.
A description of any investments, including loans and security lending progra ms that are under the management of contracted parties.
A description of the compliance with this Investment Policy , or manner in which the portfolio is not in compliance.
7.a
Packet Pg. 124
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 12 A
statement denoting the City's ability to meet its pool's expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available.
Benchmark comparison.
T
he investment portfolio will be managed in accordance with the parameters specified within this policy and is continually monitored and evaluated by the City Treasurer and the Investment Committee. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates.
17.0 PORTFOLIO REBALANCING
W
here this Investment Policy specifies a percentage limitation for a particular category or issuer, that percentage is applicable only at the date of purchase. Since portfolio percentage limits are in place in order to encourage diversification of the City’s investment portfolio, the Treasurer should endeavor to rebalance the portfolio , when percentage limitations are exceeded, in a manner consistent with the City’s overall investment objectives. Furthermore, if percentage holding limits are exceeded, no additional investments may be made in that category or issuer until the category or issuer is in compliance with this Investment Policy’s percentage holding limits.
18.0 CREDIT DOWNGRADE
T
his Statement of Investment Policy sets forth minimum credit risk criteria for each type of security. This credit risk criteria applies to the initial purchase of a security; it does not automatically force the sale of a security if its credit risk ratings fall below policy limits.
If a
security is downgraded below the minimum credit risk criteria specified in the Statement of Investment Policy, then the Investment Committee shall evaluate the downgrade on a case-by-case basis in order to determine whether the security should be held or sold.
19.0 INVESTMENT POLICY ADOPTION
T
he City’s Investment Policy shall be adopted by the City’s Council. The policy shall be reviewed at least annually by the Investment Committee to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law, financial and economic trends, and to meet the needs of the City. Any modifications made thereto must be approved by the City Council.
S
UBMITTED BY:
Jerrid McKenna
Interim Director of Administrative Services/
City Treasurer
Date
7.a
Packet Pg. 125
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 13 Appe
ndix A
AUTH
ORIZED INVESTMENTS
1. CITY BONDS
Th
ere is no limit as to the amount of the investment portfolio that may be invested in City bonds.
T
he purchase or other acquisition of bonds by or on behalf of the state or local government that issued the bonds does not cancel, extinguish, or otherwise affect the bonds, and the bonds shall be treated as outstanding bonds for all purposes except to the extent otherwise determined by the issuer or otherwise provided in the constituent instruments defining the rights of the holders of the bonds.
2. TREASURIES
U
nited States Treasury notes, bonds, bills, certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
T
here is no limit as to the amount of the investment portfolio that may be invested in United States Treasury notes.
3. STATE BONDS
R
egistered state warrants or treasury notes or bonds of this state and any of the 49 states in addition to California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.
T
here is no limit as to the amount of the investment portfolio that may be invested in state bonds.
4. MUNICIPAL BONDS
B
onds, notes, warrants, or other evidences of indebtedness of any local agency within the state of California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
T
here is no limit as to the amount of the investment portfolio that may be invested in municipal bonds.
7.a
Packet Pg. 126
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 14 5. F EDERAL AGENCIES
United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.
T
here is no limit as to the amount of the investment portfolio that may be invested in federal agencies.
6. SUPRANATIONALS
I
ssues are unsubordinated obligations issued by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities must be rated in a rating category of “AA” or its equivalent or higher by a Nationally Recognized Statistical Rating Organization (NRSRO). No more than 30 percent of the total portfolio may be invested in these securities. No more than 10 percent of the total portfolio shall be invested in any single issuer. The maximum maturity of any security of this type shall not exceed five years.
7. BANKERS ACCEPTANCES
B
ills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers’ acceptances. Purchases of bankers’ acceptances may not exceed 180 days’ maturity or 40 percent of the City’s surplus money that may be invested pursuant to this section. However, no more than 30 percent of the City’s surplus funds may be invested in the bankers’ acceptances of any one commercial bank pursuant to this section.
8. COMMERCIAL PAPER
C
ommercial paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2):
(
1) The entity meets the following criteria:
a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by a NRSRO.
(
2) The entity meets the following criteria:
a. Is organized within the United States as a special purpose corporation, trust, or limited liability company.
b. Has program-wide credit enhancements including, but not limited to, over- collateralization, letters of credit, or surety bond.
c. Has commercial paper that is rated “A -1” or higher, or the equivalent, by a NRSRO.
7.a
Packet Pg. 127
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 15 E
ligible commercial paper shall have a maximum maturity of 397 days or less. No more than 40 percent of the City’s surplus funds may be invested in eligible commercial paper.
Local agencies, other than counties or a city and county, may invest no more than 10 percent of their total investment assets in the commercial paper and the medium-term notes of any single issuer.
9. CERTIFICATES OF DEPOSIT
N
egotiable certificates of deposits issued by a nationally or state-chartered bank or a state or federal association (as defined by Section 5102 of the Financial Code) or by a federally licensed or state-licensed branch of a foreign bank.
P
urchases of negotiable certificates of deposit may not exceed 30 percent of the City’s surplus money which may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposits do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638.
10. REPURCHASE AGREEMENTS
(
1) Investments in repurchase agreements or reverse repurchase agreements of any securities authorized by this section, so long as the agreements are subject to this subdivision, including, the delivery requirements specified in this section. All transactions in repurchase agreements or reverse repurchase agreements shall require a master repurchase agreement executed by the contra-party. (
2) Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed one year. The market value of securities that underlies a repurchase agreement must be valued at 102 percent or greater of the funds borrowed against those securities, and the value shall be adjusted no less than quarterly.
(
3) Investments in reverse repurchase agreements or similar investments in which the City sells securities prior to purchase, may only be made upon prior approval of the City Council.
a. “R
epurchase agreement" means a purchase of securities by the City pursuant to an agreement by which the counter-party seller will repurchase the securities on or before a specified date and for a specified amount, and the counter-party will deliver the underlying securities to the City by book entry, physical delivery, or by third party custodial agreement. The transfer of underlying securities to the counter-party bank's customer book-entry account may be used for book-entry delivery.
7.a
Packet Pg. 128
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
16 b. "Securities," for purpose of repurchase under this subdivision, 4 means securities of the same issuer, description, issue date, and maturity.
c. "Reverse repurchase agreement" means a sale of securities by the City pursuant to an agreement by which the City will repurchase the securities on or before a specified date and includes other comparable agreements.
d. For purposes of this section, the base value of the City's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements or other similar borrowing methods.
e. For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.
f. Repurchase agreements and reverse repurchase agreements shall only be made with primary dealers of the Federal Reserve Bank of New York.
11. CORPORATE NOTES
Medium-term notes defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of "A" or its equivalent or better by a NRSRO.
Purchases of medium -term notes may not exceed 30 percent of the City’s surplus money which may be invested pursuant to this section.
12. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS
Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
(1) Mutual Funds that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
b. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California
7.a
Packet Pg. 129
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
17 Government Code, Section 53601 and with assets under management in excess of $500 million.
c. No more than 10 percent of the total portfolio may be invested in shares of any one mutual fund.
(2) Money Market Mutual Funds regist ered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
a. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
b. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
c. No more than 20 percent of the total portfolio may be invested in Money Market Mutual Funds.
(3) No more than 20 percent of the total portfolio may be invested in these securities.
13. COLLATERALIZED CERTIFICATES OF DEPOSIT
Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing City deposits having a market value at least equal to that required by Section 53652 for the purpose of securing City deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.
There is no limit as to the amount of the investment portfolio that may be invested in Collateralized Certificates of Deposit.
14. ASSET BACKED/MORTGAGE BACKED
Any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. For securities eligible for investment under this subdivision not issued or guaranteed by an agency or issuer identified in subdivision (2) or (5) above, the following limitations apply:
7.a
Packet Pg. 130
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 18 a) T
he security shall be rated in a rating category of "AA" or its equivalent or better by a NRSRO and have a maximum remaining maturity of five years or less. b) Purchase of securities authorized by this subdivision may not exceed 20 percent of the City’s surplus money that may be invested pursuant to this section.
15. LAIF
S
tate managed Local Agency Investment Fund (LAIF) pursuant to Government Code Section 16429.1 and Resolution No. 88-95 of the City Council of the City.
T
he maximum amount permitted in LAIF shall be consistent with the California State Treasurer’s most current deposit limit.
16. LACPIF
L
os Angeles County Treasury Pooled Investment Fund (LACPIF) pursuant to Government Code Section 53684 and Resolution No. 91-185 of the City Council of the City.
T
here is no limit to the amount of the portfolio that can be invested in LACPIF.
17. Local Government Investment Pool (LGIP)
S
hares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7. To be eligible for purchase, the pool must meet the requirements of Government Code Section 53601(p) and seek to maintain a stable share price.
T
here is no limit to the amount of the portfolio that can be invested in a LGIP.
7.a
Packet Pg. 131
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 19 A
ppendix B
SUMMARY OF AUTHORIZED INVESTMENTS
Authorized
Investments
State Code
Portfolio
Legal Limit
City Policy
Portfolio
Limit
Maximum
Maturity
Constraints
Other
City Bonds Unlimited Unlimited 5 years No more than 5% in any one issuer.
United States
Treasuries
Unlimited Unlimited 5 years None
State Bonds Unlimited Unlimited 5 years No more than 5% in any one issuer.
Municipal Bonds Unlimited Unlimited 5 years No more than 5% in any one issuer.
Federal Agencies Unlimited Unlimited 5 years None
Supranationals 30% 30% 5 years Rating category of “AA” or its equivalent or better.
Banker’s Acceptances 40% 40% 180 days No more than 5% in any one issuer.
Commercial Paper 40% 40% 397 days Rating category of “A-1” or its equivalent or better. No more
than 5% with any one issuer.
Certificates of Deposit
/Negotiable CDs
30% 30% 5 years No more than 5% with any one
issuer.
Repurchase Agreements Unlimited Unlimited 1 year Requires a Master Repurchase agreement. Market value of
underlying securities must be
greater than 102%.
Corporate Notes 30% 30% 5 years Rating category of “A” or its equivalent or better. No more
than 5% with any one issuer.
Mutual Funds/Money
Market Mutual Funds
20% 20% 5 years No more than 10% will be
invested in any one mutual
fund.
Collateralized
Certificates of Deposit
Unlimited Unlimited 5 years None
Asset Backed/
Mortgage Backed
20% 20% 5 years Rating category of “AA” or its
equivalent or better. No more
than 5% with any one issuer.
LAIF Maximum by
law
Maximum by
law
N/A Limited to 15 transactions per
month, per State policy.
LACPIF Unlimited Unlimited N/A None
LGIP Unlimited Unlimited N/A None
7.a
Packet Pg. 132
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 20 A
ppendix C
G
LOSSARY OF TERMS
ACC
RUED INTEREST: The interest owed to the seller of a coupon bearing issue from the last coupon date up to the sale date.
AG
ENCIES: Federal agency securities and/or Government-sponsored enterprises.
ANN
UAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Santa Clarita. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
AS
KED: The price at which securities are offered.
AS
SET BACKED SECURITIES (ABS): Asset Backed Securities are pass-through instruments collateralized by installment loans, leases, revolving lines of credit or other consumer finance receivables. Securitizations are structured to separate the credit of the ABS issuer from the assets being securitized.
BANK
ERS’ ACCEPTANCE (BA): A draft of bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer- evidencing a loan created by the accepting bank.
BAS
IS POINT: 1/100 of one percent (decimally, .0001)
BEN
CHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.
BI
D: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See OFFER.
BRO
KER: A broker brings buyers and sellers together for a commission.
CAL
LABLE BOND: A bond that can be bought back from a holder by the issuer at a specific price after a specific date prior to the maturity date.
CER
TIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.
CM
O (COLLATERALIZED MORTGAGE OBLIGATION): Mortgage-backed bond that separates mortgage pools into short-, medium-, and long-term portions.
7.a
Packet Pg. 133
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 21 CO
LLATERAL: Securities, evidence of deposit, or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
CO
MMERCIAL PAPER (CP): An unsecured promissory note issued by a corporation.
Maturity may not exceed 397 days. Usually sold in discount form CO
RPORATE NOTES: A debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.
CO
UPON: 1) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value, and 2) a certificate attached to a bond evidencing interest due on a payment date.
DEA
LER: A dealer, as opposed to a broker, acts as a principal in all transactions buying and selling for his own account.
DEB
ENTURE: A bond secured only by the general credit of the issuer.
DEF
AULT: The failure of a debtor to make timely payments of interest and principal as they come due or to meet some other provision of a bond indenture.
DELI
VERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DERI
VATIVE: 1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security and may include a leveraging factor, or 2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities, or commodities).
DI
SCOUNT: The difference between the cost price of a security and its maturity when quoted at a lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DI
SCOUNTED SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.
DI
VERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
F
EDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit
7.a
Packet Pg. 134
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 22 to various classes of institutions and individuals, e.g., S&L’s, small-business firms, students, farmers, farm cooperatives, and exporters.
F
EDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit.
F
EDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
F
EDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members who must purchase stock in their district Bank.
F
EDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
F
EDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
F
EDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.
G
OVERNMENT NATIONAL MORTGAGE ASSOCATION (GNMA or Ginnie Mae):
Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings, and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FmHA mortgages. The term “pass-throughs” is often used to describe Ginnie Mae.
I
NVERSE FLOATER: A structured note in which the coupon increases as rates decline and decrease as rates rise.
I
O (INTEREST ONLY): A class of mortgage derivative in which the cash flow consists solely
7.a
Packet Pg. 135
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
23 of the interest payments from a CMO.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
MARKET PRICE: In general business, the price agreed upon by buyers and sellers of a product or service, as determined by supply and demand.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase–reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller- borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, banker’s acceptances, etc.) are issued and traded.
MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through the holders of the security.
MUNICIPAL SECURITIES: Securities issued by state and local agencies to finance capital and operating expenses.
MUTUAL FUND: An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus.
NATIONALLY RECOGNIZED STATISTICAL RATINGS ORGANIZATION (NRSRO):
The formal term to describe credit rating agencies that provide credit ratings that are used by the U.S. government in several regulatory areas. Ratings provided by Nationally Recognized Statistical Ratings Organizations (NRSROs) are used frequently by investors and are used as benchmarks by federal and state agencies. Generally, to be considered an NRSRO, the agency
7.a
Packet Pg. 136
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 24 has to be "nationally recognized" in the U.S. and provide reliable and credible ratings. Also taken into consideration is the size of the credit rating agency, operational capability, and its credit rating process.
NEG
OTIABLE CERTIFICATES OF DEPOSIT: Large denomination interest bearing deposits with a fixed maturity date that may be sold in the money market.
O
FFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See ASKED and BID.
O
PEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect.
Open market operations are the Federal Reserve’s most important and flexible monetary policy tool.
P
AR: 1) 100 percent of the face amount of an issue, and 2) the principal amount a holder will receive at the maturity of an issue.
P
ORTFOLIO: Collection of securities held by an investor.
P
REMIUM: 1) The amount by which the market price of an issue exceeds par, 2) the amount in excess of par that an issuer must pay to call in its bonds, and 3) in the money market, the rate higher than the norm that one bank must pay to attract CD depositors.
P
RIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.
P
RIME RATE: The loan rate for the best customers of a bank.
P
RINCIPAL: 1) The dollar cost of an issue excluding accrued interest, and 2) the one who takes ownership in a transaction, as opposed to brokering or acting as agent.
P
RUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state--the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
Q
UALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use of ad valorem taxes under the laws of this state, which as segregated for the benefit of the commission eligible collateral having
7.a
Packet Pg. 137
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
25 a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The gain or loss on an investment over a specified time period, expressed as a percentage. The rate of return on investments is defined as income received plus any capital gains/losses realized on the sale of the investment. Rate of return can also be defined as the net amount of discounted cash flows received on an investment.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The Security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lend money that is, increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
SPREAD: 1) The yield or price difference between the bid and offer on an issue, and 2) the yield or price difference between different issues.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates and the volatility of the imbedded options and shifts in the shape of the yield curve.
SUPRANATIONAL: A supranational entity is formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds.
SWAP: The sale of one issue and the simultaneous purchase of another for some perceived advantage.
TRADE DATE: The date on which the buyer and seller agree to a transaction. The trade date may or may not be the day on which the securities and money changes hands (settlement date).
TREASURY SECURITIES: Securities issued as direct obligations of the U.S. Government.
7.a
Packet Pg. 138
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
26 UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among member so underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. 1) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security, and 2) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
7.a
Packet Pg. 139
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 27 Appendix D
CI
TY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
1. Na
me of Firm: _________________________________________________
2. A
ddress: _______________________________________________________
3. T
elephone No. ( ) __________________ ( )________________________ (Local) (Nat. Headquarters)
4. P
rimary Representative: Manager:
Na
me: _____________________ Name:_______________________
T
itle: ______________________ Title: _______________________ T
el. No. ( ) ________________ Tel. No. ( ) _________________
5. W
hat is your Community Reinvestment Act ("CRA") Rating?
____
___________________________________________________________
6. What
are the Total Assets of the Bank/Savings and Loan?
______________________________________________________
_________
7. W
hat is the current Net Worth Ratio of your institution? ____________________________________________________
___________
8. What
was the Net Worth Ratio for the Previous Year?
___________________________________________________
____________
9. What
is your required Capital Ratios?
A. Tangible Capital Ratio _____________________________________ B. Core Capital Ratio _________________________________________ C. Risk -Based Capital Ratio ___________________________________
7.a
Packet Pg. 140
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 28 CITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
(continued)
10 . What are your Ratings (i.e., S&P, Moody's, Fitch)? _______________________________________________________________ 11 . What is the date of your Fiscal Year-End?________________________ A. H
as there been a year during the past three years in which the Bank/Savings and Loan did not make a profit?
________________________________________________________ _______
12 . Have you read the California Government Code Section 53630 through 53684 pertaining to the State's requirements governing the deposit of monies by Local Agencies which includes Cities? [ ] YES [ ] NO 13 . Amounts above the FDIC insurance coverage must be collateralized as specified in the Government Code. Where is the collateral for Deposits held? _______________________________________________________________ H
as there ever been a failure to fully collateralize? If Yes, please attach explanation.
14 . What is the education level of the Primary Contact(s)? _______________________________________________________ ________
15 . How many years of related experience do the Primary Contact(s) have? ________________________________________________________ _______
16 . What other banking services would you be interested in providing the City of Santa Clarita?
____________
___________________________________________________
17 . What transaction documents and reports would we receive? _____________________________________________
__________________
7.a
Packet Pg. 141
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 29 C
ITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
(continued)
18 . What information would you provide to our City Treasurer? _______________________________________________________________ 19 . Describe the precautions taken by your Bank/Savings and Loan to protect the interest of the public when dealing with government agencies as depositors or investors.
_______________________________________________________________ 20 . Please provide your Contract of Deposit of Moneys pre- signed and sealed by your institution, as well as any signature cards that you may require. 21 . Please provide your Wiring Instructions:__________________________ _______________________________________________________________ _______________________________________________________________ 22 . Please provide your Bank/Savings and Loan most recent certified financial statement. In addition, an audited financial statement must b e provided within 120 days of your fiscal year-end.
C ERTIFICATION
I
hereby certify that I have personally read City of Santa Clarita’s Investment Policy and the California Government Codes pertaining to the investments and deposits of the City of Santa Clarita and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Santa Clarita. I understand, however, that our firm is not obligated to monitor the percentage limits on the investments as described in the policy. All sales personnel will be routinely informed of City of Santa Clarita investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing City of Santa Clarita Investment Officers of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.
7.a
Packet Pg. 142
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 30 C
ITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
(continued)
NOTE: Completion of Questionnaire is only part of City of Santa Clarita’s Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Santa Clarita.
SI
GNED: ______________________________ DATE: __________________ P
RINT YOUR NAME AND TITLE:________________________________________ C
OUNTERSIGNED: _______________________ DATE: __________________ PRIN
T YOUR NAME AND TITLE: ________________________________________
7.a
Packet Pg. 143
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 31 Appendix E
C
ITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1 Name of Firm ___________________________________________________ 2 Address ________________________________________________________ 3 Telephone No. ( ) __________________ ( )_________________________ (Local) (Nat. Headquarters)
4 Primary Representative: Manager/Partner-in-Charge:
Name: ______________________ Name: ____________________ Title: ________________________ Title: _____________________ Tel. No. ( ) ________________ Tel. No. ( ) _______________ No. of Years in Institutional No. of Years in Institutional Sales: _______________________ Sales: _________________ No. of Years with Firm: ________ No. of Years with Firm:_____ 5 Are you a Primary Dealer in U.S. Government Securities? [ ] YES [ ] NO
6 Are you a Regional Dealer in U.S. Government Securities? [ ] YES [ ] NO
7 Are you a Bro ker instead of a Dealer, i.e., y ou DO NOT own positions of securities?
[ ] YES [ ] NO
8 Are you FINRA certified and licensed to sell in California municipalities? [ ] YES [ ] NO
9 What is the net capitalization of your firm?
_____________________________________________________________ 10 What is the date of your Firm's fiscal year-end?
_____________________________________________________________
7.a
Packet Pg. 144
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 32 CITY OF SANTA CLARITA
O
FFICE OF THE CITY TREASURER
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
(continued)
11 Is your Firm owned by a Holding Company? If so, what is its name and net capitalization? __________________________________________________ 12 Please provide your Wiring and Delivery Instructions:
________________________________________________________________ 13 W hich of the following instruments are offered regularly by your local desk? [
] T-Bills [ ] Treasury Notes/Bonds [ ] Discount Notes [ ] NCD'S [ ] Agencies (specify) ________________________ [ ] BAs (Domestic) [ ] BAs (Foreign) [ ] Repurchase Agreements [ ] Commercial Paper [ ] Mid-Term Notes
[ ] Reverse Agreements
14 Which of the above does your Firm specialize in Marketing? ________________________________________________________________ 15 Please identify your most directly comparable City Local Agency clients in our geographical area.
Entity Contact Person Telephone No. Client Since _________________________________________________________________ 16 What reports, transactions, confirmations, and paper trail would we receive? _________________________________________________________________ 17 Please include samples of research reports or market information that your Firm regularly provides to local agency clients.
18 What precautions are taken by your Firm to protect the interest of the public when dealing with government agencies as investors?
_________________________________________________________________
7.a
Packet Pg. 145
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 33 CITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
(continued)
19 Have you or your Firm been censured or punished by a Regulatory State or Federal Agency for im proper or fraudulent activities related to the sale of securities? [ ] YES [ ] NO
20 If yes, please explain. ___________________________________ 21 Attach certified documentation of your capital adequacy and financial solvency. In addition, an audited financial statement must be provided within 120 days of your fiscal year-end.
C ERTIFICATION
I
hereby certify that I have personally read City of Santa Clarita Investment Policy and the California Government Codes pertaining to the investments and deposits of the City of Santa Clarita and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Santa Clarita. I understand, however, that our firm is not obligated to monitor the percentage limits on the investments as described in the policy. All sales personnel will be routinely informed of City of Santa Clarita investment objectives, horizon, outlook, strategies, and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing City of Santa Clarita Investment Officers of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.
NOTE: Completion of Questionnaire is only part of City of Santa Clarita’s Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City of Santa Clarita.
S
IGNED: ______________________________ DATE: __________________ P
RINT YOUR NAME AND TITLE: ________________________________________ C
OUNTERSIGNED: _______________________ DATE: __________________ (Person in charge of government securities operations.) PRINT YOUR NAME AND TITLE: ________________________________________
7.a
Packet Pg. 146
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 34 Appendix F
CI
TY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
INVESTMENT POOL QUESTIONNAIRE
SECURITIES
1. D
oes the pool provide a written statement of investment policy and objectives?
2. D
oes the statement contain:
a
A description of eligible investment instruments?
b.
The credit standards of investments?
c.
The allowable maturity range of investments?
d.
The maximum allowable dollar weighted average portfolio maturity? e.
The limits of portfolio concentration permitted for each type of security? f.
The policy on reverse repos?
3. Are
changes in the policies communicated to the pool participants?
INTEREST
4. D
oes the pool disclose the following about yield calculations? a. Wh
ich methodology i s used to calculate interest? (simple maturity, yield to maturity, etc.)
b. W
hat is the frequency of interest payments?
c. H
ow is interest paid? (credited to principal at the end of the month, each quarter, mailed?)
d. H
ow are gains/losses reported? (factored monthly or only when realized?)
5. H
ow often is the yield reported to participants of the pool?
6. A
re expenses of the pool deducted before quoting the yield? If not, please explain. ________________________________________________________________________ ________________________________________________________________________
7.a
Packet Pg. 147
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
35 CITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
INVESTMENT POOL QUESTIONNAIRE
(continued)
7. Is the yield generally in line with the market yields for securities in which you usually invest?
SECURITY
8. Does the pool disclose safekeeping practices? (If yes, what are they?) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________
9. Is the pool subject to audit by an independent auditor?
10. Is the copy of the audit available to participants?
11. Who makes the portfolio decisions?
________________________________________________________________________ ________________________________________________________________________
12. How does the manager monitor the credit risk of the securities in the pool? ________________________________________________________________________ ________________________________________________________________________
13. Is the pool monitored by someone on the board or a separate, neutral party external to the investment function to ensure compliance with written policies?
14. Does the pool have specific policies with regard to repurchase agreements? a. What are those policies?
________________________________________________________________________ ________________________________________________________________________
15. Does the pool report the portfolio’s market value?
16. Does the pool disclose the following about portfolio valuations?
a. The frequency with which the portfolio securities are valued?
b. The method used to value the portfolio (cost, current value, or some other method)?
7.a
Packet Pg. 148
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 36 CITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
INVESTMENT POOL QUESTIONNAIRE
(continued)
17. Are
statements for each account sent to participants?
a. D
o statements show balances, transactions, and yield?
18. D
oes the pool distribute detailed reports of its holdings? (regularly or on request only?)
FEES
19. I
s there a written schedule of administrative costs?
a. Wh
at are the fees?
b. H
ow often are they assessed?
c. Ho
w are they paid?
d. Are
there additional fees for wiring funds?
20. A
re expenses deducted before quoting the yield?
OPERATIONS
21. D
oes the pool limit eligible participants?
a. W
hat entities are permitted to invest in the pool?
________________________________________________________________________ ________________________________________________________________________
22. D
oes the pool allow multiple accounts and subaccounts?
23. Is
there a minimum or maximum account size? If so, what is it?
24. W
hat is the number of transactions permitted each month?
25. I
s there a limit on transaction amounts for withdrawals and deposits? a. W
hat is the minimum and maximum withdrawal amount permitted? ________________________________________________________________________ b. What is the minimum and maximum deposit amount permitted? ________________________________________________________________________
7.a
Packet Pg. 149
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 37 C
ITY OF SANTA CLARITA
OFFICE OF THE CITY TREASURER
INVESTMENT POOL QUESTIONNAIRE
(continued)
26. D
oes the pool require one or more days’ notice for deposits and/or withdrawals?
27. I
s there a cutoff time for deposits and withdrawals? If so, what is it?
28. A
re the funds 100% withdrawable at any time?
29. Are
there procedures for making deposits and withdrawals?
a. W
hat is the paperwork required, if any?
________________________________________________________________________ ________________________________________________________________________ b. W
hat is the wiring procedure?
________________________________________________________________________ ________________________________________________________________________
30. C
an an account remain open with zero balance?
31. Are
confirmations sent following transactions?
7.a
Packet Pg. 150
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY) 38 Appendix G
L
IST OF PRIMARY GOVERNMENT SECURITIES DEALERS
L
ist of the Primary Government Securities Dealers Reporting to the Government Securities Dealers Statistics Unit of the Federal Reserve Bank of New York (list is subject to change):
AS
L Capital Markets Inc.
Bank of Montreal, Chicago Branch
Bank of Nova Scotia, New York Agency
BNP Paribas Securities Corp.
Barclays Capital Inc.
BofA Securities, Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Mizuho Securities USA LLC
Morgan Stanley & Co. LLC
MUFG Securities Americas Inc.
NatWest Markets Securities Inc.
Nomura Securities International, Inc.
RBC Capital Markets, LLC
Santander US Capital Markets LLC
SMBC Nikko Securities America, Inc.
Societe Generale, New York Branch
TD Securities (USA) LLC
UBS Securities LLC.
Wells Fargo Securities, LLC
N
OTE: This list has been compiled and made available for statistical purposes only and has no significance with respect to other relationships between dealers and the Federal Reserve Bank of New York. See the New York Federal Reserve for additional detai ls at https://www.newyorkfed.org/markets/primarydealers.
7.a
Packet Pg. 151
Attachment: Santa Clarita Investment Policy FY 26-27 (FISCAL YEAR 2026-27 STATEMENT OF INVESTMENT POLICY)
Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: PORTABLE DOCUMENT FORMAT ACCESSIBILITY AND
REMEDIATION SOFTWARE
DEPARTMENT: Administrative Services
PRESENTER: Ryan Drake
RECOMMENDED ACTION
City Council:
1. Award a three-year contract to CivicPlus, LLC, for the use of the DocAccess PDF remediation and accessibility application, for a total contract amount not to exceed $83,965.
2. Appropriate funding from the General Fund (Fund 100) to Technology Services expenditure account 1002200-516101 in the amount of $28,000 in Fiscal Year 2026-27, $27,300 in Fiscal Year 2027-28, and $28,665 in Fiscal Year 2028-29. Funding for future fiscal years are contingent upon the appropriations funds by the City Council in the annual budget for such fiscal year.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review.
BACKGROUND
The City of Santa Clarita (City) maintains a significant volume of digital documents on its public-facing websites, including forms, reports, agendas, and supporting materials that are critical to providing services and information to residents. Many of these documents are in Portable Document Format (PDF), which, if not properly structured and tagged, can create barriers for individuals with disabilities who rely on assistive technologies such as screen readers, keyboard navigation, and alternative text interpretation. Ensuring that these documents are accessible is required under the Americans with Disabilities Act (ADA), Section 504 of the Rehabilitation Act, and the Web Content Accessibility Guidelines (WCAG) 2.1 standards. As municipalities continue to expand digital services, accessibility compliance has become an increasingly important operational and legal priority.
8 Packet Pg. 152
Currently, the City hosts more than 20,000 PDF documents across its websites, many of which may not fully meet current accessibility standards. Without a comprehensive remediation strategy, inaccessible documents may impede equal access to public information, limit civic participation, and pose compliance risks. Implementing a centralized, scalable solution for PDF accessibility is critical to mitigating these risks while supporting the City’s commitment to equitable access for all residents.
DocAccess is a cloud-based PDF remediation and accessibility platform designed to assist organizations in making digital documents compliant with ADA and WCAG standards. The platform directly addresses key WCAG success criteria by automatically identifying and remediating common accessibility issues such as missing document tags, improper heading structures, lack of alternative text, and incorrect reading order. Through its automated tagging engine and validation tools, DocAccess helps ensure that PDF documents are perceivable, operable, understandable, and robust, which are the four core principles of WCAG compliance.
Adopting DocAccess will position the City to systematically address existing accessibility gaps while establishing a repeatable and defensible process for ongoing compliance. This includes not only remediating legacy documents, but also ensuring that newly published materials meet accessibility standards at the time of posting. Implementing this solution aligns with evolving federal and state expectations for digital accessibility, reduces legal and operational risk, and supports the City’s commitment to transparency, inclusivity, and equitable access to public services.
The proposed agreement with CivicPlus, LLC, for the DocAccess application will be executed through a cooperative purchasing contract utilizing The Interlocal Purchasing System (TIPS) Contract #220105. This approach satisfies the City’s procurement requirements by leveraging a competitively solicited and publicly awarded contract, enabling the City to obtain favorable pricing and terms while streamlining the procurement process.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Approval of the recommended actions would appropriate funds for the Technology Services expenditure account 1002200-516101 in the amount of $28,000 for Fiscal Year 2026-27, $27,300 in Fiscal Year 2027-28, and $28,665 in Fiscal Year 2028-29.. Funding for future fiscal years are contingent upon the appropriations funds by the City Council in the annual budget for such fiscal year.
8 Packet Pg. 153
Agenda Item: 9
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: WILLIAM S. HART PARK BARNYARD ANIMAL FEED
EXPENDITURE AUTHORITY INCREASE
DEPARTMENT: Neighborhood Services
PRESENTER: Susan Nelson
RECOMMENDED ACTION
City Council:
1. Authorize an increase in expenditure authority in the amount of $40,004 with Fox Feed for animal feed at the William S. Hart Park Barnyard, for an annual amount not to exceed $90,000.
2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
BACKGROUND
In July 2025, the City of Santa Clarita (City) became the sole owner and operator of William S.
Hart Regional Park (Hart Park) following its transfer from the County of Los Angeles (County).
The transfer marked the City’s 40th park and included continued operation of the Hart Park Barnyard, which is home to approximately 82 animals including bison, donkeys, horses, chickens, roosters, and other livestock that are part of the park’s educational and recreational programming.
As part of the transition of park operations, the City assumed responsibility for the daily care and feeding of the barnyard animals. Providing consistent and appropriate feed is an important component of maintaining animal health and ensuring the barnyard continues to operate safely for both City staff and visitors.
In 2025, Fox Feed was approved as a sole-source provider for hay and forage used at the Hart Park Barnyard. Fox Feed has historically supplied feed for the animals, including during County operations, and has provided consistent, high-quality hay and animal feed. Maintaining a 9 Packet Pg. 154
consistent feed source helps avoid fluctuations in nutritional content that can occur when sourcing from multiple vendors. Additionally, it reduces the risk of feed refusal, waste, or digestive issues, while also minimizing the potential for contamination from invasive weeds, pests, or pathogens that may be introduced through varying sources. Due to the variability in hay quality and nutritional composition, and the need to maintain a consistent feeding program for animal health, transitioning to a new supplier would require a gradual and closely monitored process that cannot be implemented without risk of digestive issues or disruption to operations.
As such, Fox Feed remains the only vendor able to provide the continuity required to support ongoing barnyard operations at this time.
Since the City began operating Hart Park, staff has continued to procure feed from Fox Feed to support daily barnyard operations. Feed needs vary depending on the number and type of animals housed at the facility and are based on the nutritional needs of each species.
To ensure continued barnyard operations, staff recommends increasing the City’s spending authority with Fox Feed. The requested amendment would increase expenditure authority by $40,004, bringing the total amount to $90,000, to support the purchase of feed for the animals at the Hart Park Barnyard.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Adequate funds have been previously appropriated as part of the Fiscal Year 2025-26 budget to support the recommended actions within the Hart Park Grounds Maintenance Expenditure Account 1407303-511101.
9 Packet Pg. 155
Agenda Item: 10
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: NEWHALL COMMUNITY CENTER PLAYGROUND RENOVATION P2027-DESIGN CONTRACT
DEPARTMENT: Neighborhood Services
PRESENTER: Susan Nelson
RECOMMENDED ACTION
City Council:
1. Award a design contract to Architerra Design Group, for design services for the Newhall Community Center Playground Renovation Project, in the amount of $74,720 and authorize a contingency in the amount of $7,472 for a total contract amount not to exceed $82,192.
2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
BACKGROUND
In 2004, the City of Santa Clarita (City) constructed the Newhall Community Center (NCC) to serve the Newhall community. At the time of construction, programming and community center activities were designed primarily for teenagers, including the playground on-site. The key components of the playground consist of a climbing apparatus with spinning seats, climbing walls and ropes, an inclined balance beam, an overhead track glide, and three sand pits. In 2012, a shade structure was installed over the play area, and in 2016, the rubberized play surfacing was replaced.
Since 2004, the programming and activity needs of the community center have significantly changed, transitioning from primarily teenage users to school-aged children ages 5 to 12. While NCC continues to serve teenagers, the vast majority of programming and services have shifted to evolve with the needs of the community. However, the existing playground equipment remains largely unchanged and is no longer age-appropriate.
10 Packet Pg. 156
Supporting the theme of Sustainable Public Infrastructure in Santa Clarita Pathway Forward, the City’s five-year strategic plan, the proposed contract will provide design services for a new playground, which will maximize the use of the existing space and provide an equipment layout appropriate for children ages 5 to 12 years old. The new equipment is expected to have a variety of play panels, musical elements, and inclusive components, as well as slides, elevated platforms, and climbing equipment.
The scope of work for this design contract includes concept design, community outreach meetings, playground equipment design, engineering, and landscape design services required to prepare construction documents. These documents will consist of complete plans, specifications, and engineer’s estimates for construction. The design process is expected to have a duration of approximately six months. Construction is anticipated in spring of 2027.
In February 2026, the City released a Request for Proposal (RFP) inviting interested firms to submit proposals for the design of the new playground at the NCC. The RFP solicited firms to identify their relevant experience on similar projects, provide evidence of qualifications, and demonstrate their approach for this design project. The City transmitted the solicitation to 4,434 vendors on BidNet, of which 110 vendors downloaded the materials. A total of four proposals were submitted and opened on March 9, 2026.
The four proposals were evaluated by a panel of City staff who ranked each proposal based on the following:
• The content, format, and completeness of the written proposal, quality and professionalism of the proposal: 25 points
• Demonstrated understanding of the described project and scope of work, submitted design concept and recommendations for the Newhall Community Center playground:
25 points
• Consultant and subconsultant experience on similar projects (including detailed portfolio of examples), as well as perceived technical competence and creative ability:
25 points.
• Total cost of services and overall best value to the City: 25 points
The evaluation team scored the responses based on a 100-point system, with the results outlined below:
Rank Company Location Score
1 Architerra Design Group Rancho Cucamonga, CA 96.67
2 Hirsch & Associates, Inc. Anaheim, CA 93.67
3 Studio 2nd Street, Inc. Los Osos, CA 93
4 Kimley-Horn Orange, CA 92
10 Packet Pg. 157