Santa Maria City Council
June 20, 2023

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Recreation and Parks

SUBJECT: Agreement with the California Conservation Corps for use of the Newlove Neighborhood Center

Description:

The City Council will consider approving an Agreement with the California Conservation Corps (CCC) for use of a portion of the Newlove Neighborhood Center to locate their Santa Maria CCC programs in exchange for 3,000 annual hours of crew work.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Qu ality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving a n agreement with the California Conservation Corps granting the use of the Newlove Neighborhood Center.

BACKGROUND:

The CCC has been housed at 705 W est Cypress Street since 201 6 and providing the City with support services in lieu of rent, including alley clean up, trail construction, tree planting, and support at special events. The City has a need to utilize the 705 West Cypress Street facility to co-locate the Recreation & Parks Department’s Operations Division.

The Recreation & Parks Department recognizes the important training programs that the CCC provides to local youth and recommends that the CCC programs be moved to the Newlove Neighborhood Center. The Newlove Neighborhood Center, located at 1619 South Thornburg Street, provides the necessary facilities to house the CCC programs and has been inspected by the CCC.

DISCUSSION:

The CCC provides job skills training, educational opportunities, and increased awareness of the State's natural resources to young adults. The CCC is authorized to work on projects in rural and urban areas that provide a benefit to the public by preserving, maintaining, or enhancing the lands and water of the State of California to directly contribute to the conservation of energy or fire prevention.

2 The City owns and manages parks, open space, and natural resource lands that require regular maintenance, upkeep, and focused enhancements. The City has successfully utilized the CCC in the past to perform such maintenance and upkeep, including focused enhancement services on its open space and natural resource lands.

The CCC is interested in leasing a site within the City of Santa Maria for its satellite operations. The City has an underused facility at Newlove Neighborhood Center, 1619 South Thornburg Street. The City will be providing the CCC with the use of an office building and the adjacent parking lot.

The agreement is for an initial three-year term with up to three one-year extensions. In exchange for the use of the facility, the CCC will provide in-kind services in-lieu of rent in the form of 3,000 hours of crew work. In addition, the CCC will provide the necessary grounds maintenance at the Newlove facility to the City's landscape standards in coordination with the Recreation & Parks Department. The Newlove facility is currently under-utilized and the City has an ongoing need for the type of labor assistance provided by the CCC in augmenting public services consisting of improvement and upkeep of parks, open space, natural resources lands, facility maintenance, grounds keeping, and other City priorities.

As compensation for the use of the City's property, CCC will provide as rent 3,000 hours of crew work consisting of improvement and upkeep of parks, open space, natural resources, lands, facility maintenance, grounds keeping, and/or other City priorities each calendar year, January 1 through December 31. These services will be determined on or before January 1 of each year in writing between the Tenant's representative and the City Manager.

The CCC is required to provide emergency services if directed by the Governor of the State of California and other agencies charged with responding to emergencies throughout California arising from fire, flood, wind, and other natural and man -caused disasters. These emergency services may require the CCC to temporarily suspend services.

Alternative
The City Council has the option to not approve this agreement , which would leave the California Conservation Corps without a workspace provided by the City, and the City without the 3,000 of work provided by the California Conservation Corps in lieu of rent.

Fiscal Considerations
The City will be receiving 3,000 hours of labor from the CCC annually in exchange for the use of an underutilized facility.

Impact to the Community
Formalizing the agreement between the City and CCC defines expectations, articulates risk, and defines the roles of each party in the use of City premises and the exchanged services. The exchanged services to be provided by the CCC will enhance the community by providing crew work improvements throughout the City.

3 ATTACHMENT
Attachment A: Agreement with California Conservation Corp and the City of Santa Maria

Attachment A

AGREEMENT WITH CALIFORNIA CONSERVATION CORPS

AND THE CITY OF SANTA MARIA
THIS AGREEMENT ("Agreement") is entered into as of July 1, 2023, between the City of Santa Maria ("City") and California Conservation Corps ("CCC").

Recitals
WHEREAS, the CCC is statutorily mandated to provide job skills training, educational opportunities and an increased awareness of the State's natural resources to young adults; WHEREAS, the CCC is authorized to work on projects in rural and urban areas that provide a benefit to the public by, among other things, preserving, maintaining and/or enhancing the lands and water of the State of California, directly contributing to the conservation of energy and/or assisting in fire prevention and suppression:

WHEREAS, the CCC is authorized pursuant to the California Public Resources Code Section 14306 to execute contracts for furnishing the services of the CCC to any federal state or local public entity concerned with the objectives of the CCC program as specified in California Public Resources Code Sections 14000 and 14300;
WHEREAS, the City owns and manages parks, open space, rights of way and natural resource lands which require regular maintenance, upkeep, and focused enhancements; WHEREAS, the City has successfully utilized the CCC in the past to perform such maintenance, and upkeep including focused enhancements services on its open space and natural resource lands:

WHEREAS, the CCC wishes to occupy a portion of the City-owned property located at the 1619 S.

Thornburg St., Santa Maria, CA for its Santa Maria Non-Residential satellite operations and the City desires to provide such space to the CCC in exchange for its services.

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

I. Premises. City provides to CCC, and CCC accepts from City, the property located at 1619 S.

Thornburg St., Santa Maria, CA incorporated herein by reference ("Premises"). The Premises shall include the following:
(a) A community center building consisting of approximately 2,100 square feet; and, (b) An adjacent gated parking lot.

2. Term of Agreement. The term of this agreement ("Term") shall be for a three-year period, commencing on July 1, 2023 ("Commencement Date"), and ending on June 30, 2026, unless sooner terminated as provided in this agreement ("Termination Date"). The Term of this agreement may also be extended by up to three years in one-year increments. The Agreement will automatically be extended each year unless the City or CCC provides written notice to the other party by April 1st. The CCC may terminate this agreement without penalty prior to the Termination Date upon ninety (90) days' advance written notice to the City.

3. Use. CCC shall use the Premises for any lawful purpose, subject to CCC obtaining, maintaining as current, and following, all local, state, and federal approvals. Hazardous materials shall not be used or stored on the premises except for equipment fuels stored in an approved fuel storage locker designated by City.

4. Rent
(a) CCC shall provide, in lieu of rent, three thousand (3,000) hours of crew work consisting of improvement and upkeep of parks, open space, natural resources lands, facility maintenance, grounds keeping and/or other City priorities each City Fiscal Year, July 1 to June 30. (b) Services are to be coordinated by the Director Recreation and Parks, with Recreation and Parks and Public Works department receiving approximately 50% of the service hours for their needs. Dates for services will be determined annually between CCC representative and designated City representatives for each department.
(c) The City acknowledges that the CCC is required to provide emergency services if directed by the Governor of the State of California and other agencies charged with responding to emergencies throughout California arising from fire, flood, wind, and other natural and man caused disasters ("Emergency Services"). The City further acknowledges that Emergency Services may require the CCC to temporarily suspend services. Notwithstanding the existence of Emergency Services, CCC shall remain responsible for the payment of Rent through the completion of service hours.

5. Utilities. The CCC shall make all arrangements for and pay for telephone, electricity, gas, internet, including all connection and removal charges. All equipment to connect to internet shall be provided by CCC. The CCC agrees to provide all custodial maintenance on a week ly basis and cover all cost of all custodial supplies. Structural maintenance, HVAC system, hardscapes and pavements maintenance will be the responsibility of the City.

6. Condition of Premises. CCC represents that as of the commencement date, CCC has inspected the premises and all improvements on the Premises, and CCC hereby accepts the premises in their "As ls" condition.

7. Repairs and Maintenance.
(a) The City shall maintain the exterior of the building in which the Premises are located, including the walls, ground, roof and glass, plumbing and other facilities, except that the City shall have no duty to maintain the Premises if the need for such maintenance is the result of CCC's neglect. CCC shall, at its cost, maintain the interior of the Premises. The CCC is responsible for cleaning and general upkeep of the d Premises.
(b) If at any time during the Term, after written notice by the City, CCC fails to maintain the Premises or make any required repairs or replacements, City may, but shall not be required to, enter the Premises and perform the maintenance or make the repairs or replacements for the account of CCC; to the extent permitted by law, City may seek to recover from CCC any sums expended by City in so doing, together with interest at ten percent ( 10%) per annum from the date said sums are demanded, said sums shall be deemed additional Rent.

8. Alterations. CCC shall not make any alterations to the building or other improvements on the Premises without the prior authorization from the City. The City retains the right to make alterations as necessary;

9. Entry. City or City's agents, representatives, or employees may enter the Premises at all reasonable times and upon reasonable notice to inspect the Premises to determine whether CCC is complying with the terms of this agreement and to do other lawful acts that may be necessary to protect City's interest in the Premises under this Agreement or to perform City's duties under this Agreement.

10. Agreement Termination. Subject to CCC's right to remove its trade fixtures and personal property in accordance with Paragraph 14 of this Agreement, on the Termination Date or the end of any extension or renewal of this Agreement, CCC shall promptly surrender and deliver the Premises to City in as good condition as they are at the Commencement Date, reasonable wear and tear excepted.

11. Indemnity. To the fullest extent permitted by law, each party shall indemnify and hold harmless the other party and its respective officers, officials, employees and agents from and against all claims (including demands, losses, actions, causes of action, damages, liabilities, expenses, charges, assessments, fines or penalties of any kind, and costs including expert fees, court costs and attorney's fees) from any cause, arising out of or relating (directly or indirectly) to this Agreement which have been determined to have been caused by the acts or omission of the non- indemnifying party. However, neither party is obligated to indemnify or hold harmless the other party when any claim(s) (as described above) are caused by the willful acts or omissions or gross negligence of the other party. These indemnifications extend to and include, without limitation, claims for injury or death to persons, loss of, injury or damage to, or destruction of property, and all economic losses and consequential or resulting damage. The indemnification obligations hereunder shall survive the expiration or earlier termination of this Agreement until all claims against the City or the CCC involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable statute of limitation.

12. Insurance. CCC is a self-insured State entity and shall maintain a self-insured status throughout the duration of this Agreement.

13. Trade Fixtures.
(a) CCC shall have the right, at any time and from time to time during the agreement and any renewals or extensions, at CCC's sole cost and expense, to install and affix on the Premises items for use in CCC's trade or business, which CCC, in CCC's sole discretion, deems advisable, including CCC's personal property and any storage container placed on the Premises by the CCC ("Trade Fixtures"). Trade Fixtures installed in the Premises by CCC shall always remain the property of CCC and may be removed at the expiration of the agreement or any extension, provided that any damage to the Premises caused by the removal of the Trade Fixtures shall be

repaired by CCC, and further provided that City shall have the right to keep any Trade Fixtures or to require CCC to remove any Trade Fixtures that CCC might otherwise elect to abandon. (b) Any Trade Fixtures that are not removed from the Premises by CCC within sixty (60) days after the Termination Date shall be deemed abandoned by CCC and shall automatically become the property of City as owner of the real property to which they are affixed.

14. Damage and Destruction. If the building or other improvements constructed on the Premises are damaged or destroyed, whether partially or entirely, by any cause, CCC, to the extent permitted by law, at CCC's own cost and expense, but utilizing the proceeds of insurance, if any, including any insurance carried by City to the extent available, shall repair, restore, or reconstruct the damaged or destroyed building and other improvements so that the condition and quality of the new building and other improvements shall be as near as reasonably possible to the condition and quality immediately prior to the damage or destruction. Damage to or destruction of any portion of the building, fixtures, or other improvements on the Premises by fire, the elements, or any other cause shall not terminate this Agreement or entitle CCC to surrender the Premises or otherwise affect the respective obligations of the parties, any present or future law to the contrary notwithstanding. However, if the building, fixtures, or other improvements on the Premises are destroyed or damaged to the extent that the Premises are wholly unsuitable or inadequate for the purposes for which CCC was using the Premises prior to the destruction or damage, all Rent shall abate effective the date of the destruction or damage.

15. Assignment and Subletting. CCC shall not transfer, convey, assign, sublease, or mortgage or encumber its interest, or any portion thereof, in the Premises (each, an "Assignment"). Any attempted Assignment shall constitute an Event of Default and shall be voidable by the City.

16. Quiet Possession. The City agrees that the CCC, while keeping and performing the covenants herein contained, shall at all times during the existence of this agreement, peaceably and quietly have, hold, and enjoy the premises without suit, trouble, or hinderance from the Cit y or any person claiming under the City.

17. Default. Any of the following events or occurrences shall constitute a material breach of this Agreement by CCC and, after the expiration of any applicable grace period, shall constitute an Event of Default (each an "Event of Default"):
(a) The failure by CCC to pay any amount in full when it is due, the failure to provide SMNR Services as agreed upon.
(b) The failure by CCC to perform any other obligation under this Agreement, if the failure has continued for a period of thirty (30) days after City demands in writing that CCC cure the failure . If, however, by its nature the failure cannot be cured within thirty (30) days, CCC may have a longer period as is necessary to cure the failure, but this is conditioned upon CCC's promptly commencing to cure within the thirty (30) day period and thereafter diligently completing the cure .

CCC shall indemnify City against any liability, claim, damage, loss, or penalty that may be threatened or may in fact arise from that failure during the period the failure is uncured. (c) The abandonment of the Premises by CCC.

18. Remedies. Upon the occurrence of an Event of Default, City, in addition to any other rights or remedies available to City at law or in equity, shall have the right to:
(a) Terminate this Agreement and all rights of CCC under this Agreement by giving CCC written notice that this Agreement is terminated, in which case City may recover from CCC the aggregate sum of:
1) the prorated worth at the time of the Default of any remaining SMNR Services that have been earned but not received at the time of termination. 2) all other amounts in addition to or in lieu of those previously set out as may be permitted by applicable California law.
(b) Continue this Agreement, and from time to time without terminating this Agreement, recover SMNR Services as Rent as they become due.
(c) Upon the occurrence of an Event of Default, City shall also have the right, with or without terminating this Agreement, to re-enter the Premises and remove all persons and property from the Premises. City may store the property removed from the Premises in a public warehouse or elsewhere at the expense and for the account of CCC.
(d) Except where this is inconsistent with or contrary to any provisions of this Agreement, no right or remedy conferred upon or reserved to either party is intended to be exclusive of any other right or remedy, or any right or remedy given or now or later existing at law or in equity or by statute.

Except to the extent that either party may have otherwise agreed in writing, no waiver by a party of any violation or nonperformance by the other party of any obligations, agreements, or covenants under this Agreement shall be deemed to be a waiver of any subsequent violation or nonperformance of the same or any other covenant, agreement, or obligation, nor shall any forbearance by either party to exercise a remedy for any violation or nonperformance by the other party be deemed a waiver by that party of the rights or remedies with respect to that violation or non-performance.

19. Waiver of Breach. Any express or implied waiver of a breach of any term of this Agreement shall not constitute a waiver of any further breach of the same or other term of this Agreement; and the acceptance or provision of rent (i.e., SMNR Services) shall not constitute a waiver of any breach of any term of this Agreement, except as to the payment of rent accepted.

20. Attorney's Fees. If any action at law or in equity is brought to recover any rent or other sums under this Agreement, or for or on account of any breach of or to enforce or interpret any of the covenants, terms, or conditions of this Agreement, or for the recovery of the possession of the Premises, the prevailing party shall be entitled to seek to recover from the other party as part of prevailing party's costs reasonable attorney's fees, the amount of which shall be fixed by the court and shall be made a part of any judgment rendered.

21. Notices. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Agreement or by law to be served on or given to either party to this Agreement by the other party shall be in writing and shall be deemed served when personally delivered to the party to whom they are directed, or in lieu of the personal service, upon deposit in

the United States Mail, certified or registered mail, return receipt requested, postage prepaid, or via a nationally recognized overnight courier, addressed as follows:

To CCC at: To City:

CCC Recreation and Parks Director
1530 Madera Ave. 615 S. McClelland St.

San Luis Obispo, CA 93401 Santa Maria, CA 93454

Either party, may change the address for the purpose of this Section by giving written notice of the change to the other party in the manner provided in this Section.

22. Heirs and Successors. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of City and CCC.

23. Partial Invalidity. Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of th is Agreement shall remain in effect, unimpaired by the holding.

24. Entire Agreement. This instrument constitutes the sole agreement between City and CCC respecting the Premises, the leasing of the Premises to CCC, and the specified Agreement term, and correctly sets forth the obligations of City and CCC. Any agreement or representations respecting the Premises or their leasing by City to CCC not expressly set forth in this instrument are void.

25. Amendments. This Agreement may be modified only in writing and only if signed by the parties at the time of the modification.

26. No Oral Agreements. It is mutually understood and agreed that no alterations or variations of the terms of this agreement shall be valid unless made in writing and signed by the parties hereto, and that no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto. the parties hereto

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

Approved as to form:

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Date:______________________ ______________________________

CITY OF SANTA MARIA

Date:______________________ ______________________________

CALIFORNIA CONSERVATION CCC

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,

CALIFORNIA, APPROVING AN AGREEMENT WITH THE CALIFORNIA

CONSERVATION CORP GRANTING THE USE OF THE

NEWLOVE NEIGHBORHOOD CENTER

WHEREAS, the City of Santa Maria is the owner of the Newlove Neighborhood Center at 1619 South Thornburg Street; and

WHEREAS, the California Conservation Corps has agreed to provide, in-lieu of rent, 3,000 hours of crew work; and

WHEREAS, the City of Santa Maria and California Conservation Corp recognize the mutual benefit of allowing the use of the Newlove Neighborhood Center from which to offer the youth of Santa Maria a meaningful training program; and

WHEREAS, the California Conservation Corps and the City of Santa Maria wish to enter into this mutually beneficial agreement.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That the above recitals are true and correct; and

2. That the City Council authorizes the City Manager, or designee, to execute an Agreement on behalf of the City with the California Conservation Corp pursuant to the terms and conditions provided in the Attachment to the Council Agenda Report and incorporated herein by reference; and

3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Atto rney concerning any changes deemed necessary.

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2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Utilities

SUBJECT: Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority

Description:

The City Council will consider an amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority (“CCWA”) to facilitate water management strategies for increasing the reliability of State Water through water storage activities for the benefit of CCWA member agencies.

Environmental Notice: The activity is not a “Project” as defined under Section 15378(b)(5) and the “common sense” exemption under Section 15061(b)(3) of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(2) and (3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution authorizing the execution of the Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority.

BACKGROUND:

CCWA was created by the member agencies in 1991 for the development, financing, construction, operation, and maintenance of local facilities required for the del ivery of State Water. The member agencies to CCWA (also referred to as participants) are the City of Buellton, Carpinteria Valley Water District, City of Guadalupe, Goleta Water District, Montecito Water District, City of Santa Barbara, City of Santa Maria , and the Santa Ynez River Water Conservation District-Improvement District #1.

The City has been receiving State Water through CCWA since 1997 and has imported over 215,000 acre-feet of water since that time. State Water is blended with local groundwater to provide a higher quality blend of water to the residents and businesses in Santa Maria to assist in meeting discharge requirements at the Wastewater Treatment Plant, and to augment total water supplies available to the City.

Persistent drought conditi ons, as well as operational constraints placed on the State Water Project, have reduced State Water reliability. In the previous three years, the State Water allocation was 5 percent, 5 percent, and 15 percent, respectively, while this year (2023), the State Water allocation is 100 percent.

2 There have been recent discussions at CCWA regarding its likelihood to be involved in facilitating water management strategies to assist CCWA participants in increasing the reliability of State Water through water storage activities. These may include participating in a groundwater bank, leasing or owning interests in above - or below-ground storage facilities, and moving water in and out of storage facilities that are not wholly owned by CCWA. The intent is for CCWA participants to deliver water to a storage facility in higher allocation (wet) years and then the water will be pumped out and returned to the CCWA participants in lower allocation (dry) years.

DISCUSSION:

To facilitate these opportunities, the Joint Exercise of Power Agreement (“JPA”) for CCWA must be amended to expressly allow CCWA to take action and enter contracts for the use of water in storage opportunities. This will be the second amendment to the JPA, the form of which is provided as Attachment “A.”

Any amendment to the JPA requires approval by the City of Santa Maria, along with the seven other CCWA member agencies. Approval of this amendment will allow CCWA to pursue water storage opportunities on behalf of its member agencies. Any costs associated with pursuing water storage projects will be borne by only those agencies choosing to participate. Member agencies not participating will be financially insulated from any costs associated with the projects.

Alternative
The City Council may elect not to approve the proposed amendment; however, for the amendment to occur, all CCWA member agencies must also approve the amendment.

Approval by the City will allow CCWA member agencies to participate in water storage while the City will be financially insulated from any costs of projects in which it does not participate. Therefore, City staff recommends approval of this amendment.

Fiscal Considerations
The fiscal considerations related to water storage will be identified at the time a project is brought to City Council for consideration. The City will pay only for those water storage projects in which it chooses to participate.

Impact to the Community
Approval of the amendment may make opportunities for water storage more available to the City. This will allow the City to compare the benefits of increased reliability with the costs associated with water banking.

Other Agency Review
Each CCWA member agency will be required to obtain approval from their respective legislative bodies for the amendment to become effective.

ATTACHMENT
Attachment “A” – Second Amendment to the JPA Creating the CCWA_2023-06-20

25428739.1

Attachment A

SECOND AMENDMENT
to the

JOINT EXERCISE OF POWERS AGREEMENT
Creating the

CENTRAL COAST WATER AUTHORITY

This Second Amendment (the “Amendment”) to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority (the “Authority”), dated August 31, 1991 and as amended December 12, 2017 (the “Joint Exercise of Powers Agreement”), is made effective ______________, 2023 by and between the parties on the attached Exhibit A (each, a “Party” and collectively, the “Parties”). Unless otherwise provided herein, all defined terms used in this Amendment shall have the same meaning as set forth in the Joint Exercise of Powers Agreement.

RECITALS

A. The Parties to this Amendment are all signatories to the Joint Exercise of Power Agreement or successors in interest. Carpinteria Valley Water District is the successor in interest to the Carpinteria County Water District.

B. The Parties desire to amend the Joint Exercise of Powers Agreement to expressly authorize the Authority to enter into contracts and take other actions to store water in groundwater banks, reservoirs, or any other above- or below-ground infrastructure or facilities used for the short- or long-term storage of water.

AGREEMENT

1. Section 5 of the Joint Exercise of Powers Agreement is amended to include a new subsection “q” as follows:
q. To enter into contracts or take any other action necessary or convenient for the storage and use of water in a groundwater bank, reservoir, or any other system or facilities for the storage of water.

2. Except as modified above, the Joint Exercise of Powers Agreement shall continue in full force and effect. In the event of a conflict between this Amendment and the Joint Exercise of Powers Agreement, the terms and conditions of this Amendment shall control in all respects.

3. The individuals executing this Amendment represent and warrant that they have the authority to enter into this Amendment and to perform all acts required by this Amendment, and that the consent, approval, or execution of or by any third party is not required to legally bind either Party to the terms and conditions of this Amendment.

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed as of the day and year first above-written.

25428739.1

Attachment A

DATE: _______________________________

CITY OF BUELLTON

By:_________________________________
Mayor
ATTEST:

_____________________________________
City Clerk

APPROVED AS TO FORM:

By:__________________________________

DATE: _______________________________

CARPINTERIA VALLEY WATER

DISTRICT

By:
_________________________________
President
ATTEST:

_____________________________________
Secretary

APPROVED AS TO FORM:

_____________________________________

DATE: _______________________________

CITY OF GUADALUPE

By:
_________________________________
Mayor
ATTEST:

______________________________________
City Clerk

APPROVED AS TO FORM:

_____________________________________

25428739.1

Attachment A

DATE: _______________________________

GOLETA WATER DISTRICT

By:_________________________________
President
ATTEST:

_____________________________________
Secretary

APPROVED AS TO FORM:

_____________________________________

DATE: _______________________________

MONTECITO WATER DISTRICT

By:_________________________________
President
ATTEST:

_____________________________________
Secretary

APPROVED AS TO FORM:

_____________________________________

25428739.1

Attachment A

DATE: _______________________________

CITY OF SANTA BARBARA

By:_________________________________
Mayor
ATTEST:

_____________________________________
City Clerk

APPROVED AS TO FORM:

_____________________________________

DATE: _______________________________

CITY OF SANTA MARIA

By:_________________________________
Mayor
ATTEST:

_____________________________________
City Clerk

APPROVED AS TO FORM:

_____________________________________

DATE: _______________________________

SANTA YNEZ RIVER WATER

CONSERVATION DISTRICT,
IMPROVEMENT DISTRICT #1

By:_________________________________
President
ATTEST:

_____________________________________
Secretary

APPROVED AS TO FORM:

_____________________________________

RESOLUTION NO. _

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,

CALIFORNIA, AUTHORIZING THE EXECUTION OF THE SECOND AMENDMENT

TO THE JOINT EXERCISE OF POWERS AGREEMENT CREATING

THE CENTRAL COAST WATER AUTHORITY

WHEREAS, in 1991, the City of Santa Maria (“City”) and seven other public agencies that provide retail water supply service within Santa Barbara County (collectively, “Members”), formed the Central Coast Water Authority (“Authority”) as a Joint Powers Agency pursuant to Government Code section 6500 et seq. by that certain Joint Exercise of Powers Agreement dated August 1, 1991 (“JPA”); and

WHEREAS, beginning in 19 97, the City began receiving State Water from the Authority to provide higher quality water to the residents and businesses of Santa Maria, to assist in meeting discharge requirements at the Wastewater Treatment Plant, and to augment total water supplies available to the City; and

WHEREAS, effective December 12, 2017, the Members executed the first amendment of the JPA granting the Authority the power to contract directly with the Department of Water Resources for the delivery of State Water Project water along with all necessary and incidental powers as may be required by the Authority to carry out the Authority’s rights and obligations under the State Water Supply Contract; and

WHEREAS, persistent drought conditions and operational constraints placed on the State Water Project have reduced State Water reliability; and

WHEREAS, water banking is a mea ns to address inconsistent State Water allocation by allowing for storage of water during high allocation years and drawing on that water during low allocation years; and

WHEREAS, the City or any other Member may wish to pursue water banking opportunities through the Authority; and

WHEREAS, the City and the Authority have determined that a second amendment of the JPA is necessary and appropriate to specify the Authority’s power to enter into contracts and take other actions to store water.

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2 NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. Authorize and direct the Mayor of the City of Santa Maria to execute the Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority, incorporated herein by reference; and

2. Authorize the Chief Deputy City Clerk to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Utilities

SUBJECT: Agreement for Services for Operations and Management of the Santa Maria Regional Landfill Recycling Park

Description:

The City Council will consider approving an agreement for services with Santa Maria Area Recycling Terminal, LLC for an estimated annual cost of $1,300,000 to operate and manage the Santa Maria Regional Landfill Recycling Park.

Environmental Notice: The Project was adequately covered in the previously adopted Santa Maria Regional Landfill Site Facility Permit Final Second Supplemental Environmental Impact Report (SCH#92031045).

RECOMMENDATION:

Adopt a Resolution approving an Agreement for Services with Santa Maria Area Recycling Terminal, LLC for operations and management of the Santa Maria Regional Landfill Recycling Park.

BACKGROUND:

The Santa Maria Regional Landfill (“SMRL”) Recycling Park accepts unsorted recyclable materials from residential and small business self-haul customers. The SMRL Recycling Park plays a significant role for the City of Santa Maria (“City”) in meeting State-mandated solid waste diversion requirements. The Recycling Park at the SMRL diverts approximately 19,000 tons per year from the SMRL.

Under a long -term agreement since 2009, Santa Maria Area Recycling Terminal , LLC (“SMART”) has operated and managed the Recycling Park, which includes the collection, sorting, transportation, and processing of recyclable materials. That agreement was scheduled to expire on December 31, 2021, and was amended as a month -to-month agreement on January 1, 2022, to ensure SMRL recycling activities continued until a new service agreement was awarded.

In July 2021, the Utilities Department released a Request for Proposals (“RFP”) to solicit proposals from qualified firms to operate and manage the SMRL Recycling Park. The RFP was sent to six qualified firms and proposals were received from two firms: 1) MarBorg Industries (“MarBorg”) and 2) SMART.

2 Proposals from MarBorg and SMART were ranked by a selection committee based on the following criteria as outlined in the RFP:

 Overall proposal, completeness, and methodology to address the City’s needs, including overall cost to the City.
 Demonstration of firm’s qualifications, background, technical experience, and financial means to accomplish the scope of work.
 Relevant experience conducting services of a similar nature in compliance and conformance with California regulations.

The RFP selection committee determined that MarBorg’s proposal met the City’s recycling needs at the lowest cost. City staff presented the results of the RFP before City Council on November 2, 2021. City Council rejected all bids and directed City staff to issue a new RFP requiring standardized proposals more like a traditional bid.

DISCUSSION:

Consistent with City Council direction, City staff released a new RFP on January 11, 2023.

Proposals were received from MarBorg and SMART. Following interviews and vendor facility site visits for both firms, the selection committee determined SMART’s proposal met the City’s RFP criteria requirements at the lowest cost. A summary of the SMRL Recycling Park processing fee analysis is shown in Attachment “A”.

The proposed Agreement for Services (“Agreement”) provides that SMART will operate and manage the SMRL Recycling Park. This includes a ccepting and sorting recyclable materials from self -haul customers, load ing the materials into roll -off containers a nd trailers, and transport ing the materials to its recycling facility on West Betteravia Road.

There, SMART will process and export the materials directly to market or transport the recyclable materials to other facilities for use.

For these services, t he City will pay SMART a processing and transport fee, which includes a base processing fee ranging from $30 to $70 per ton and a transportation fee based on the commodity. The base processing fee will increase annually by two percent each July 1, starting in July 2024. Commodities with value after processing will generate a credit to the City based on appropriate indices or market pricing.

The initial term of the Agreement is five years with two optional five -year extensions (renewal terms). Either party may opt out of the Agreement with a one-year written notice.

The complete Agreement is shown in Attachment “B”.

Alternative(s)
The City Council may:

1. Reject all proposals and direct City staff to issue a new RFP for Recycling Park operations and management. This will result in additional staff time and costs for issuing a new RFP. Furthermore, it is not anticipated that a new RFP will result in additional proposals from proposers beyond the two firms that have already submitted.

3 2. Direct City staff to dispose of the recyclable materials from self-haul customers in the SMRL. This will inhibit the City’s ability to meet State -mandated diversion requirements.

Fiscal Considerations
The estimated annual cost of the Agreement is $1,300,000. This cost will vary with the quantity and type of recyclable commodities received, as well as the market value of the commodities. The Solid Waste Disposal Enterprise Fund has adequate funding for this Agreement.

To continue the viability of the Solid Waste Disposal Enterprise Fund, City staff is currently evaluating all solid waste disposal fees to ensure sufficient revenues are collected to process the various commodities. City staff will bring an item for Council consideration at a future meeting regarding any rate adjustments necessary based on that evaluation.

Impact to the City
Approval of the Agreement enables the City to continue to meet its State-mandated solid waste diversion requirements.

Impact to the Community
Residents and businesses can continue maximizing their recycling efforts at the SMRL Recycling Park.

ATTACHMENTS
Attachment “A” – SMRL Recycling Park RFP Processing Fee Analysis_2023-06-20 Attachment “B” – Agreement_Operation and Management SMRL Recycling Park_2023-06-20

Date: March 8, 2023
Material
Recycling
Park Tons
Processing
Fee ($/Ton)
Transport
Fee ($/Ton)
Commodity
Value Credit
($/Ton)
Net Cost Per
Ton
Annual
Processing &
Transport Cost
Processing
Fee
($/Ton)
Transport
Fee ($/Ton)
Commodity
Value Credit
($/Ton)
Net Cost
Per Ton
Annual
Processing &
Transport Cost
Cardboard 169.85 35.00$ 65.00$ (52.50)$ 47.50$ 8,067.88$ 37.17 $ - $ - $ 37.17$ 6,313.32$ Drywall 564.23 43.00$ 47.00$ - $ 90.00$ 50,780.70$ 37.17 $ 50.96$ - $ 88.13$ 49,725.59$ E-waste 194.27 33.00$ - $ - $ 33.00$ 6,410.91$ 37.17 $ - $ - $ 37.17$ 7,221.02$ Green Waste 4,217.33 30.00 $ 13.00$ - $ 43.00$ 181,345.19$ 37.17 $ 17.42$ - $ 54.59$ 230,224.04$ Inert Material 74.00 30.00$ 5.00$ - $ 35.00$ 2,590.00$ 37.17 $ 6.16$ - $ 43.33$ 3,206.42$ Mattresses
(15,409 ea.) 452.95 25,424.85$ - $ - $ 25,424.85$ 25,424.85$ 37.17 $ - $ - $ 37.17$ 16,836.15$ Metals 128.51 35.00$ 42.00$ (98.57)$ (21.57)$ (2,771.96)$ 37.17 $ - $ - $ 37.17$ 4,776.72$ Mixed C&D 11,352.74 70.00 $ 20.00$ - $ 90.00$ 1,021,746.60$ 132.71 $ 31.36$ - $ 164.07$ 1,862,644.05$ Tires 63.79 35.00$ 135.00$ - $ 170.00$ 10,844.30$ 302.61 $ 39.20$ - $ 341.81$ 21,804.06$ White Goods/
Appliances 1,227.12 33.00 $ 60.00$ (98.57)$ (5.57)$ (6,835.06)$ 37.17 $ - $ - $ 37.17$ 45,612.05$ Totals 18,444.79 1,297,603.41$ 2,248,363.43$
SMRL Recycling Park RFP Processing Fee Analysis
2022 Calendar Year Tons SMART Proposal MarBorg Proposal Attachment APage 395 of 442
ATTACHMENT "B"

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, APPROVING AN AGREEMENT

FOR SERVICES WITH SANTA MARIA AREA RECYCLING TERMINAL, LLC

FOR OPERATIONS AND MANAGEMENT OF THE

SANTA MARIA REGIONAL LANDFILL RECYCLING PARK

WHEREAS, the City of Santa Maria (“City”) accepts unsorted recyclable materials from residential and small business self-haul customers; and

WHEREAS, in January 2023, the Utilities Department released a Re quest for Proposals (“RFP”) to solicit proposals from qualified firms to provide recycling services for self-haul customers at the Santa Maria Regional Landfill Recycling Park; and

WHEREAS, of the two proposals received, a selection committee determined that the proposal from Santa Maria Area Recycling Terminal, LLC met the needs of the City’s RFP criteria requirements at the lowest cost; and

WHEREAS, the Utilities Department negotiated the terms of an Agreement for Services for Santa Maria Regional Landfill Recycling Park Operations and Management (“Agreement”) for Santa Maria Area Recycling Terminal , LLC to provide the recycling services required by the City; and

WHEREAS, execution of the Agreement enables the City to continue to meet its State-mandated solid waste diversion requirements and allows residents and businesses to continue maximizing their recycling efforts at the Santa Maria Regional Landfill Recycling Park.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the Cit y of Santa Maria, California, as follows:

1. Authorize the City Manager, or designee, to enter into an Agreement for Services with Santa Maria Area Recycling Terminal , LLC for Operations and Management of the Santa Maria Regional Landfill Recycling Park , incorporated herein by reference; and

2. Authorize the City Manager, or designee, to enter into future extensions or amendments to the Agreement consistent with the terms of the Agreement, to ensure the continued operations and management of the Santa Maria Regional Landfill Recycling Park; and

3. Authorize the Chief Deputy City Clerk to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Public Works

SUBJECT: Pavement Management Update 2023

Description:

The City Council will receive a presentation on City roadway condition and maintenance programs.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Receive presentation and file.

BACKGROUND:

The City Council will receive a presentation from Public Works Engineering staff on pavement management and the City’s Pavement Condition Index (PCI), roadway treatment strategy, budget, and financial needs. Staff will also review various standards, policies, and procedures used to extend the useful life of the City infrastructure and make the most effective use of available funding.

There are 232.42 centerline miles (535.9 lane miles) of asphalt concrete roadways in the City limits valued at over $1 bill ion in replacement cost. The current overall PCI for the City is 65, which is “At -Risk” on a scale of 0 to100. Annual expenditures on pavement preservation do not meet the level needed to maintain pavement condition. Staff estimates the current overall PCI rating will drop by approximately one point per year.

This drop in the City’s PCI rating will accelerate as costs compound exponentially each year.

DISCUSSION:

The City receives funding from various sources for pavement preservation. Senate Bill 1 (SB-1) Road Maintenance and Rehabilitation Account Gas Tax, along with Gas Tax Highway Users Tax Account, Measure A, Local Surface Transportation Program (LSTP), and General Fund combined to provide the City $7.5 to 6.9 million a year to use on pavement project s. Even with these significant funding sources, the needs analysis generated by the City’s pavement management system shows, that with updated cost

2 models, there is a funding shortfall of $3.8 to 10.9 million annually to keep the PCI constant without further decline.

Staff recommends the continued use of a multi -prong approach to address the issue.

Innovation, standard updates, and development conditions will all be used to help mitigate the funding shortfall.

Innovation
The City has been exploring innovative ways to maximize funding dollars for pavement maintenance to utilize funding in the most cost -effective manner. In Fiscal Year 2023/2024, Engineering, in coordination with Streets Staff, will utilize an on-call contractor to focus on the maintenance of primary and secondary arterials. These types of roadways carry the highest volumes of traffic in the City. In general, the roadways exhibit a satisfactory level of overall health. Therefore, the proposed maintenance will be location specific. This strategy will raise the overall integrity of the roadway, extend its useful life , and raise the arterial PCI.

With a contractor focusing on the more heavily traveled roadways, City’s Street Staff will address distressed collectors and local residential roadways segments. This strategy will increase staff productivity, increase pavement maintenance areas, and raise the residential PCI.

Fiscal Considerations
No fiscal considerations. The pavement management update provides the City Council a status of the City’s roadway PCI and an overview of Staff’s plan for roadway maintenance for fiscal year 2023/2024. The City Council may receive the update and provide guidance for future consideration.

Impact to the Community
The pavement management update proposes to provide insight to the residents of the City of Santa Maria regarding staff’s approach to pavement maintenance ; s trategies utilized to expend public funds in the most cost-effective and efficient way possible.

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager

SUBJECT: Amendments to the Previously Adopted 2023-24 City Budget (Second Year of the Approved Two-Year Budget)

Description:

The City Council will consider making amendments to the 2023-24 mid-cycle City Budget and receive two presentations on two Citywide initiatives: Smart City, Safe City and Neighborhood Connect.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATIONS:

1. Adopt a Resolution approving amendments to the 2023-24 mid-cycle City Budget.

2. Provide policy direction to staff on the launching of two Citywide initiative programs: Smart City, Safe City, and Neighborhood Connect.

BACKGROUND:

Last year (June 21, 2022), the City Council adopted two one -year budgets covering the period from July 1, 2022, to June 30, 2024.

Per past budget practice, staff indicated it would be necessary to revisit the adopted 2023- 24 Budget plan (year two) during the mid -cycle review and to make any appropriate amendments to the Budget based on unforeseen events, changes in the economy, operational impacts from the pandemic, and unanticipated operational needs. Because this is the second-year report, it contains much less detail as compared to the first-year Budget document. This report contains, for the City Council’s consideration, amendments to the City Council Adopted 2023 -24 Budget. The related agenda report addresses personnel requests in more detail.

2 SUMMARY:

The previously adopted 2023 -24 appropriations for All Operating Funds totaled $264.9 million; and the recommended Mid -Cycle 2023 -24 appropriations total is a proposed $276.7 million. Highlights are:

 Service levels are largely maintained, there are 34 new full-time positions and one part-time position. Positions that were previously authorized for 2023-24 that have funding restored through the 2023 -24 Mid-Cycle Update are two Police Services Technicians. Also, there is the conversion of the part -time PEG Production Manager to full-time (a 0.20 FTE increase);
 General Fund appropriations, excluding Measure U, are $2.0 million more than estimated revenues excluding transfers from the Local Economic Augmentation Fund (LEAF);
 The structural deficit is balanced by using $8.95 million from Measure U reserves and the General Fund will receive a $2.02 million transfer from LEAF. The General Fund structural deficit (now in its 14th year) grows marginally from the previously projected $10.83 million to $10.97 million;
 Total City appropriations (all funds) are $357.4 million, or $20.5 million more than the previously adopted $336.9 million;
 The City is not financially able to approve further requested enhancements other than necessities due to rising ongoing costs;
 On a positive note, at the end of 2022-23 the City expects to deposit approximately $7.0 million cumulatively (about one-third each) into its LEAF, its Capital Projects Fund, and its Pension Reserves;
 This Budget delivers on the Council’s strategic priorities and fulfills its request for significant additional investment for enhanced road maintenance and other infrastructure. The Fire Station No. 1 expansion is funded with $6 million through the Budget Resolution. In 2023 -24, the City invests $7.55 million, maintaining its two-year commitment to double its funding for local roads by a cumulative $15 million;
 The Public Library’s main hours will reopen for Sundays, effective July 9 th, as previously approved.

This mid-cycle Budget acknowledges that the City received approximately $37.2 million in Federal funding from the American Rescue Plan Act (ARPA ) and must spend or obligate these grant funds relatively quickly, within roughly three and one -half years, by December 31, 2024. Pursuant to prior City Council direction , below are the three strategies for ARPA funds: 1. Reimburse costs incurred and revenue lost as a result of COVID-19. 2. Invest this one -time funding in projects that can be completed in the required timeline and increase ongoing revenues or reduce ongoing costs. 3. Strengthen the City’s financial position to prepare for future fiscal emergencies. City staff conducted a robust process to identify and develop projects. This process ensured that City Council strategic guidance set priority for project select ion and that each project meets the U.S.

Treasury rules for eligibility. Subsequently, these projects were brought before the City Council for approval and status updates. The projects that were approved by the City Council are at various stages of planning and execution.

3 Every responsible City budget discussion must address ongoing CalPERS obligations.

Like hundreds of other public agencies across California, the biggest challenge facing the General Fund is soaring pension costs, partly created by investment losses sustained by CalPERS during the Great Recession of 15 years ago, and more recent CalPERS policy changes being phased in over several years. In 2021, CalPERS reduced its assumed rate of return from 7.0 percent to 6.8 percent, effectively increasi ng the employer contribution amount paid by cities to help make up the difference. The City’s CalPERS payment in 2023 -24 is forecast at $23.9 million. For perspective, the City’s CalPERS payment for 2006-07 was $5.4 million. In fact, if CalPERS obligations were a department, it would be the second-largest General Fund department, behind the Police Department’s appropriations. Every dollar paid to CalPERS is a dollar less available for wages and compensation, and operations.

Concerning General Fund revenue s, excluding Measure U, the previously adopted revenues were $87.0 million; the recommended Mid -Cycle 2023 -24 revenue total is proposed to be $90.8 million. Including Measure U, the previously adopted revenues were $113.4 million; the recommended Mid -Cycle 2023-24 revenue total is proposed to be $117.7 million, an increase of approximately $4.3 million.

In the General Fund, excluding Measure U , the previously adopted appropriations were $89.0 million; the recommended Mid -Cycle 2023-24 appropriations total is proposed to be $90.8 million, an increase of $1.8 million. Including Measure U, the previously adopted appropriations were $120.9 million; the recommended Mid-Cycle 2023-24 appropriations total is proposed to be $126.7 million, an increase of $5.8 million.

The City has been drawing from its LEAF since 2008-09. At its peak, the fund is projected to contain $18.9 million in
2022-23. The City
estimates it will deposit
about $2.3 million into the
LEAF in 2022 -23, under a
City Council policy to
maintain and rebuild
reserves. The LEAF
reserve is at a comfortable
level above $10 million,
primarily as a result of
salary savings due to
vacancies as well as
revenues exceeding
projections. As
departments begin to fill
vacant positions, however,
there is conc ern about
whether the LEAF can be maintained at this level. Staff initially projected using $6.1

4 million from the LEAF for 2023 -24 and is now recommending the use of $8.9 million to help balance the 2023-24 Budget which will leave the LEAF balance at $10.1 million as shown in the chart above.

For 2023-24, proposed personnel recommendations bring Citywide authorized staffing totals to 650 full-time and 76 part-time positions, for a total of 726 authorized positions.

In all, 34 new full-time positions and one part-time position are being recommended over previously authorized levels Citywide. The Police and Fire departments comprise 287 full- time positions or 44 percent of the total authorized full-time positions Citywide.

Full-time and part-time positions by department are summarized in Attachment B of this staff report. Attachment B also shows the previously authorized 2023-24 allocations and the personnel changes being proposed in 2023-24.

The City has many more operational needs than it can afford at this time. Staff reviewed 112 supplemental budget requests, of which 63 are recommended for approval totaling $8.7 million . Additionally, 64 project proposals were requested, of which 26 are recommended for approval totaling $9.9 million, in the proposed Budget. Staff may return to the City Council in the first quarter, when revenues are reassessed, to determine whether other budget requests for 2023-24 can be considered.

2023-24 General Fund Revenues
The recommended adjustments for all General Fund revenues, by category, are shown below, followed by a discussion of significant variances:

The increases in the Taxes category include about $1 million in Transient Occupancy Tax (TOT) as travel demand rebounds, $881,000 in sales tax, and $275,000 in property tax.

The City’s top three revenue sources are, in order, sales tax, property tax, and TOT.

Estimated Previously
Actuals Adopted Recommended Proposed
Description 2022-23 2023-24 Adjustments 2023-24
Taxes 67,742,388$ 65,780,291$ 2,485,168$ 68,265,459$ Licenses, Permits & Fines 3,622,754 3,197,050 44,584 3,241,634 Revenue from Use of Money & Property 2,005,139 1,563,513 1,396,000 2,959,513 Revenues from Other Agencies 1,488,408 732,025 (245,539) 486,486 Charges for Service 5,690,216 4,854,298 791,981 5,646,279 Other Revenue and Transfers 7,906,992 10,837,479 (600,762) 10,236,717 Total 88,455,897$ 86,964,656$ 3,871,432$ 90,836,088$ General Fund Revenues

5 2023-24 General Fund Appropriations
As previously mentioned, proposed General Fund appropriations, excluding Measure U, for 2023 -24 are about $90.8 million. The following table presents, by department, the originally proposed 2023-24 General Fund Budget contained in the two-year financial plan (adopted in June 2022), and the Mid -Cycle recommended adjustments to the 2023-24 General Fund Budget.

Variances to General Fund appropriations and noteworthy personnel changes, by department, are explained as follows:

Police Department
Increase appropriations by about $487,000. Funding for two Police Services Technician positions is restored, with one to be hired in July 2023 and one in January 2024. Other Budget changes include recalculation of personnel costs for previously budgeted positions and internal service rates; the creation of an Investigative Specialist I/II series and addition of one position (unfunded) to meet the demand for investigative services, in particular, felony property crimes and allow a path for future growth and succession planning; a software solution for the Concealed Carry Permit Program with an annual cost of $20,000; increased utility budgets of $49,000; and, annual maintenance of $69,000 at the Los Flores Shooting Range.

Fire Department
Reduction in funding by about $ 563,000 is primarily due to changes in personnel and recalculation of personnel costs. Funding for nine Fire Fighter positions was allocated per Staffing for Adequate Fire and Emergency Response (S AFER) Grant requirements in 2022-23 to the General Fund (13 percent) and Measure U (87 percent). In 2023-24 100 percent of the cost is allocated to Measure U.

General Fund Appropriations
Department
Estimated
Actuals
2022-23
As Originally
Adopted
2023-24
Recommended
Adjustments
Proposed
2023-24
Police 32,455,680$ 36,315,649$ 486,695$ 36,802,344$ Fire 11,423,831 11,600,426 (563,414) 11,037,012 Public Works 4,345,207 4,635,807 237,769 4,873,576 Recreation & Parks 10,733,080 11,190,445 1,216,451 12,406,896 Community Development 5,359,269 7,425,921 (804,738) 6,621,183 City Attorney 1,340,437 1,210,074 155,585 1,365,659 City Manager 8,618,400 8,801,576 401,376 9,202,952 Finance 11,647,604 7,571,847 747,712 8,319,559 Mayor & Council 208,431 212,911 (6,004) 206,907 Total 86,131,939$ 88,964,656$ 1,871,432$ 90,836,088$

6 Department of Public Works
Increase appropriations by about $238,000. The addition of a Business Program Leader for Public Works Operations with funding split between the General Fund, Fleet Services, and Measure A will support the department’s workload. The addition of an Electrician should decrease outsourced electrical contractor costs and provide for routing maintenance as existing infrast ructure and components meet the end of useful life.

Funding of $100,000 for unforeseen facility repairs will avoid adverse impacts on plans for the existing maintenance budget.

Recreation and Parks Department
Increase appropriations by about $ 1.2 million . Majority of the increase, $611,000 is needed to fund higher general liability insurance rates. The addition of a Maintenance Worker I and a $275,000 operating bud get will allow the City to meet the requirement under Senate Bill 1383 to procure annually a quantity of recovered organic waste compost products intended to strengthen California’s green, self -sustaining economy. Funding of $45,000 will allow the Mayor’s Task Force on Youth Safety to purchase necessary equipment, and cover expenses associated with organizing events and outreach efforts.

Funding of $18,000 will allow for repair and/or replacement of electrical assets in the City- owned Town Center East (the mall) parking lot.

Community Development
Decrease appropriations by about $805,000. Most of the decrease is a combination of reductions to general liability insurance of $320,000 and workers’ compensation of $68,000, and $245,000 in Code Enforcement personnel costs which were moved from Measure U to the General Fund last year – this latter action is not needed this fiscal year.

The addition of a Business Program Leader will create the capacity to address workload surrounding the budget, accounting, human resources, and other department operational responsibilities. Funding of $100,000 for plan check reimbursements will allow the Building Division to send development proposals that require structural engineering review to a third-party consultant for review.

City Attorney’s Office
Increase appropriations by about $156,000 to account for the realignment of funding for the City Attorney and Assistant City Attorney positions previously allocated directly to other funds.

City Manager’s Office
Increase appropriations by about $401,000 This is attributed to i ncreased business equipment rental rates in the Information Technology (I.T.) division due to several large value assets added in 2021-22 (the most significant being the CAD/RMS Locution system for the Fire Department). This ongoing expense will allow for the maintenance and replacement of the equipment in the future. Those rental rates more than offset reductions of $505,000 for recalculation of position costs, one-time reductions of $95,000 for liability insurance, and $80 ,000 workers’ compensation cost . Creation of the GIS Analyst classification to focus on easily accessible sophisticated web-based mapping applications to meet the Citywide GIS -related needs, with no fiscal impact. The addition of a Corporate/Executive Leader position (unfunded) will provi de an authorized position for

7 rapidly responding to unanticipated needs that may arise during the year as a result of City Council priorities, an emergency, or required intervention requiring staff augmentation. Funding of $100,000 will provide for a staff development program led by Human Resources that will make employee training active and continuing.

Finance
Increase appropriations by $748,000. Funding of $250,000 will provide resources for limited-term professional services as Finance staff focus on i mplementing a new Enterprise Resource Planning (ERP) system. This increase also reflects an additional $429,000 transfer to the Library Fund to support its operations. This is anticipated to be a one-time occurrence.

2023-24 Measure U:

Measure U is predicted to generate $26.7 million in its fifth year as a one-cent sales tax, which began on April 1, 2019. The City is in a very fortunate position to maintain and enhance public services thanks to this revenue source. Measure U, transactions and use tax, received more than 74 percent voter approval, providing a needed increase above the previous quarter -cent rate. Without Measure U, the City would have faced deeply reduced staffing and programs across departments that the General Fund otherwise could not support.

Measure U advances the City Council’s commitment to all those voters who passed Measure U2018 to improve the community. The goals are to first maintain services and introduce service enhancements. The objectives are to make Santa Maria safer, w ith more youth services, and to improve quality of life. The City Council’s direction is to spend 90 percent on public safety services, five percent on youth services, and five percent on quality-of-life services.

Due to the nature of sales tax, Measure U revenues will remain volatile, expenditures will be revisited annually, and there may be reductions resulting from an economic downturn.

With this recognition, the City Council adopted a reserve policy for Measure U which this proposed budget adheres to.

In total, Measure U revenues directly support 183 of the total authorized full-time and part- time positions Citywide. That is 25 percent of the workforce or about one in every four employees.

The Measure U Fund analysis is depicted in the following table.

8 Variances to Measure U appropriations and noteworthy personnel changes, by department, are explained as follows:

Police Department
Nine Police Officer positions have been restored; however, funding is only restored for two positions at this tim e. Changes in personnel and recalculation of personnel costs resulted in an increase. Funding of $13,500 will provide for employee support services for all sworn and professional staff in the Department ; $25,000 will provide for access control security imp rovements to the Police Department facility; and, $30,500 will allow for the procurement of Crime Lab vehicle moving equipment for evidentiary vehicle processing.

Fire Department
Funding for nine Fire Fighter positions was allocated per Staffing for Adequate Fire and Emergency Response (SAFER) Grant requirements in FY 2022-23 to the General Fund (13 percent) and Measure U (87 percent). In FY 2023 -24 100 percent of the cost is allocated to Measure U. One Business Program Leader position was added in FY 2022- 23 as the Department’s Safety Officer is transferred from the City Manager’s Office to the Fire Department in FY 2023-24. Add one Training Captain. This position will work closely with the Civilian Training Specialist (approved in FY 2022 -23) and under the direction of the Deputy Fire Chief , the Training Captain will be the front-line operational coordinator

MEASURE U FUND ANALYSIS
Estimated
Actuals
2022-23
As Originally
Adopted
2023-24
Recommended
Adjustments
Proposed
2023-24
Beginning Fund Balance 17,407,947$ 15,931,355$ 10,392,527$ 15,931,355$ Projected Revenue 27,079,000$ 26,385,354$ 501,000$ 26,886,354$ Police 12,085,840$ 11,408,242$ 859,491$ 12,267,733$ Fire 11,224,345 15,375,612 2,513,051 17,888,663 Recreation & Parks 3,661,781 3,308,066 32,155 3,340,221 Library 1,065,960 1,089,891 97,936 1,187,827 Community Development 492,566 717,271 245,979 963,250 City Attorney - - - - City Manager 22,500 22,500 166,835 189,335 Finance 2,600 2,600 - 2,600 Total 28,555,592$ 31,924,182$ 3,915,447$ 35,839,629$ Ending Fund Balance 15,931,355$ 10,392,527$ 6,978,080$ 6,978,080$ Toward Reserve Policy 5,377,271
Unrestricted Fund Balance 1,600,809
6,978,080$

9 for all training within the Department. No additional costs beyond salary would be required. The workstation, phone, radio, vehicle, etc. already exist. Six Fire Suppression Personnel (two Fire Captains, two Fire Engineers, and two Fire Fighters) are authorized but unfunded pending the need to fill the positions.

Funding of $200,000 will provide for security cameras for Fire facilities, $245,000 for the design and preliminary engineering of a new Fire Administration Building, and $45,000 to acquire a vehicle for a Fire Prevention Inspector.

Recreation and Parks
Funding of $168,000 will allow fo r the purchase of Axon OSP packages for the City Rangers, which contain a body camera and Taser to assist with safety, recording of contacts with the public, and all other actions conducted by the Rangers.

Library
The addition of two part -time Library Security Officer positions will provide adequate safety for Public Library users and staff.

Community Development/Code Enforcement
The addition of one Code Enforcement Officer will support the continued heavy volume of service requests from community residents including, but not limited to, neighborhood blight, unpermitted construction, graffiti, shopping cart violations, and weed abatement.

City Manager’s Office
The Public, Education, and Government (PEG) Production Manager position is restored to full-time with full funding in Measure U. Funding of $35,000 is also provided to cover operational expenses for the PEG division.

Enterprise Funds:

Aside from the anticipated salary and pension -related increases, the following are some of the other more noteworthy changes from the previously adopted 2023-24 Budget. Total appropriations in the Enterprise Funds are $134.2 million, up $ 6.1 million from the previously adopted 2023-24 Budget.

Water Resources
One Lead Customer Service Technician classification will be created and one position added (unfunded). One Water Supervisor position will be added. Funding of $116,877 will cover increased gas and electric utility costs, $30,000 to lease a modular building for Water Resources staff at the Wastewater Treatment Plant, $220,000 for ongoing costs associated with Groundwater Management Plan litigation, $600,000 for ongoing costs associated with Steelhead litigation, $22,500 for a project-specific sewer study, $212,000 for ongoing rehabilitation of aging infrastructure at the Wastewater Treatment Plant, $294,500 for sludge hauling and disposal, $40,000 for technical support services for SCADA upgrades, $50,000 for an organizational assessment, $75,000 for a water supply capacity analysis, and $40,000 for specialized onsite training.

10 Solid Waste
A net of seven full-time positions are being added: one Lead Utilities Clerk classification will be created (unfunded), one Regulator y Compliance Supervisor, four Solid Was te Equipment Operators, one Solid Waste Equipment Crew Leader, and one Solid Waste Manager. One Solid Waste Collections Supervisor is removed. One Business Program Leader position added in 2022-23 as the Department’s Safety Officer is transferred from the City Manager’s Office to the Utilities Department’s Solid Waste Division in 2023 -24.

Funding of $50,000 will provide for an organizational assessment, $35,000 for maintenance and support fees for existing refuse collections software, $20,000 to meet a regulatory requirement for tarps to provide proper cover at the landfill, $75,000 for onsite training for landfill staff, $25,000 to meet groundwater monitoring requirements, $40,000 for operation and management of the Household Hazardous Waste Facility, and $100,000 for rental of equipment at the Santa Maria Regional Landfill.

Transit
The first and second quarter financial reports authorized shifting the purchase of six replacement Paratransit vehicles ($750,000), two expansion ADA Accessible Supervisory vans ($150,000), and five electric Expansion Buses ($4.9 million) from 2023-24 to 2022-

23. Funding of $3.25 million for the purchase of electric bus fleet replacements reflects the impacts of inflation on prices, $650,000 for two mobile electric vehicle charging units, $580,000 for bus stop improvements, $429,000 for Transit Center Improvements, $300,000 for College St. autonomous shuttle crossing improvements, $250,000 for Transit traffic signal prioritization system support, $175,000 for Transit operations an d safety facility improvements, $75,000 for a remote Transit yard study, and $75,000 for a Bus Rapid Transit study. The City’s Transit operations contract expires on June 30, 2023.

A previously negotiated three -year extension is in the fully executed contr act. The extension reflects the labor -negotiated cost increases passed on to the City, as well as expanded service with up to three additional fixed routes totaling $543,000. Other Budget changes include recalculation of personnel costs for previously budg eted positions and higher general liability insurance rates.

Special Revenue Funds:

The net change in Special Revenue Funds reflects an overall net decrease of about $125,000. The addition of a Streets Maintenance Supervisor (Asphalt) funded through County Measure A will result in dividing the Concrete and Asphalt oversite by assigning one Supervisor to each program. CDBG –Block Grant reflects a slightly lower allocation than previously anticipated. The reduction in Public Access TV reflects a shifting of funding for the PEG Production Manager to Measure U.

Landscape Services, Mitigation and Grant Funds:

There is a net increase of about $90,000 in the Landscape Services, Mitigation, and Grant Funds. The $105,000 increase in Growth Mitigation is attribu table to funding for the design and preliminary engineering of a new Fire Administration Building. The $15,000

11 decrease in Landscape Maintenance Service is largely attributable to the rightsizing of the budget for electric utility costs.

Capital Projects Funds:

Appropriations in the Capital Projects Funds reflect projects deemed necessary to keep operations going or for required maintenance and/or replacement. The $700,000 increase is largely attributable to the implementation of a new Enterprise Resource Planning (ERP) system. This is a multi -year project to replace and upgrade the City’s core suite of software.

Internal Service Funds:

Fleet:

Fleet Services are to increase by about $4.0 million. The primary sources of the increase are due to the procurement of a new ladder truck in the amount of $2.25 million ($1.0 million is currently appropriated in 2022 -23 and an additional $1.25 million is requested for 2023 -24). Funding of $250, 000 will provide for phase I of developing the Electric Vehicle Charging infrastructure needed to meet State requirements for zero emissions fleet purchases starting in 2024. The increase also reflects the impacts of inflation on vehicle prices and the desire to order equipment with sufficient lead time to avoid delays.

Insurance & Workers’ Compensation:

The Insurance & Worker’s Compensation funds primarily consist of insurance and liability coverage. The City is required to maintain certain types of insur ance coverage for different types of liabilities and at specific levels to remain in compliance with various laws. The City must also budget for these insurance coverages based on experience and trends. The major types of coverage that are included here are State Self-Insurance Plan, 4850 Safety Workers’ Compensation, ERMAC Liability Insurance, Property/Earthquake Insurance, Pool Administration Insurance, and Cyber Insurance. Business Program Leader positions added in 2022-23 as Safety Officers for the Fire Department and Utilities Department’s Solid Waste Division are transferred from the City Manager’s Office to those departments in 2023 -24. As such, the City anticipates a decrease in the amount of $118,000 based on the recalculation of personnel costs for previously budgeted positions.

ECONOMIC OUTLOOK:

The economy is slowing, and recession concerns remain, as the tight labor market is cooling in the face of higher interest rates on loans. First quarter gross domestic product decelerated to a weak 1.3 percent as the housing market was impacted and businesses reduced inventories, following the 2.6 percent rate from October through December, and

3.2 percent clip from July through September.

Through early June, the Federal Reserve raised its key rates 10 times in 14 months, aimed at defeating high inflation. Inflation slowed to 4 percent, well below the 9.1 percent rate of June 2022, which was close to a 40-year high. The surge in borrowing costs may

12 send the economy into a recession sometime this year. The housing market is especially vulnerable to higher loan rates.

Nationally, the unemployment rate recently was at a ve ry low 3.4 percent. On an annual basis, 2021 and 2022 were the two best years for job creation on record – following historic job losses triggered by the pandemic. Job openings, however, fell in March to the lowest level in nearly two years.

California’s tax revenues are falling short of expectations, partly because of the State’s highly progressive income tax that relies heavily on high-income taxpayers. Last year, the State budget had close to a $100 billion surplus – more than the budgets of most states.

Now, the State faces a projected deficit of about $31 billion, perhaps higher. The State has a projected $22.4 billion reserve fund, but the Governor has said he may choose to prioritize budget cuts instead of tapping reserves until tax collections are tallied.

The Santa Maria housing market remains strong and recently the sale-to-list price ratio was 99 percent, meaning sellers typically get the asking price. The median selling price was $600,000, compared to $625,000 a year earlier. Inventory remains constrained.

Santa Barbara County’s proposed 2023 -24 operating expenditure budget is a record $1.48 billion, an increase of 6.2 percent over the adopted 2022 -23 plan. The preliminary operating budget includes $1.52 billion in revenues, up $100 million f rom the prior year.

The County proposes to increase its workforce to 4,628, up 162 from last fiscal year. This marks the fifth year in a row that service level reductions are not proposed.

FUTURE ISSUES:

Looking beyond 2023 -24, the City Council needs to brace for added expenses that will outpace added revenues such as workers’ compensation rates and increasing pension costs. Capital project funding will need to be examined as costs of projects are outpacing sources of funding. Previous strategies for maintaining an ongoing balanced budget include holding more vacancies, unfunding vacancies, across -the-board reductions, drawing strategically from reserves, and/or taking other actions. These strategies will need to be considered in the upcoming 2024 -26 two-year budget. Preparation for that plan will begin later this calendar year.

POLICY ISSUES REGARDING COUNCIL ACTION:

Smart City, Safe City (Ciudad Lista Ciudad Segura):

The community has consistently expected the City to take action to enable people to live smarter and safer lives in Santa Maria. The City has done so with many initiatives that align with that vision. Our Smart City, Safe City (SCSC) vision is the culmination of the various technologies and programs prioritized by the City Council. These efforts together help the people in Santa Maria have a smarter and safer quality of life. Tonight, staff is unveiling the proposed messaging including its branding logo and an overview video. A new website is ready to publish.

13 The policy issue before the City Council is whether to launch the SCSC campaign to explain to Santa Marians how all the work of the City enables a smarter and safer today and tomorrow. This includes the website, videos, and directions to staff to proceed with the rollout of the SCSC logo on City documents. The campaign is designed to help meet the needs of our growing community and to become part of the City’s marketing for the recruitment of talent and businesses.

Some of our Smart City, Safe City programs we have been providing for many years, as a result of City Council budget pri orities, while others are new. Smart programs range from apps, public Wi -Fi, high -speed fiber -optic links, computer kiosks, smart meters, electric buses, and more. Safe programs include faster emergency responses, Police text alerts, proactive traffic plans to prevent accidents, increased access to vital services, and ensuring we are better prepared to serve everyone who lives in Santa Maria.

The basis for the Smart City, Safe City logo is an icon that represents the parts of the initiative – technology, and safety – coming together to create a connected community.

Blue and Gold are our City’s colors, and green represents our strong ties to agriculture and the environment. Blue signifies trust, responsibility, and loyalty; Gold connotes happiness, optimism, creativity, and intellect. Green represents harmony, growth, freshness, and energy.

Neighborhood Connect:

Neighborhood Connect is a new, user-friendly web-based tool designed for use by Santa Maria residents and is accessible in both English and Spanish . Successfully tested and ready for launch, this website uses GIS technology and allows residents to report non - emergency issues directly to City staff, the City to better respond and track issues and trends. This Council has expressed interest in its deve lopment to improve customer service and communication. Staff will make a presentation tonight.

The policy issue before the City Council is whether to support a launch Citywide and to fund up to $100,000 in outreach and ramp up resources to support capacity to address a growing number of service requests.

Neighborhood Connect has undergone thorough and successful testing. Staff members have actively participated in the testing process and are fully prepared to manage the reports. Residents who tested the s ystem have expressed their satisfaction, finding it user-friendly, and eagerly anticipate using it for real issue reporting. All communication and comments regarding the issue are handled within the Neighborhood Connect system, providing a centralized database for future reference.

Alternative(s)
The City Council could proceed without these recommended mid -cycle Budget adjustments and continue with the adopted 2023-24 Budget.

14 Environmental Review

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

Fiscal Considerations
Looking beyond 2023-24, the City Council needs to again exhibit strong fiscal discipline and prepare for increased expenses and inflationary pressures that will outpace revenues, such as insurance premiums and increasing pension costs. Successful past strategies in clude leveraging reserves to minimize the service delivery impacts to the public and realizing additional expenditures savings from vacant positions. Santa Maria’s growing population will demand additional services. These strategies will need to be part of the upcoming 2024-26 Budget.

Impact to the Community:

Adoption of the above-recommended amendments to the 2023-24 City Budget will enable the maintenance and enhancement of municipal services as directed by voters.

Accordingly, staff intends to continue to provide City residents and businesses with the most efficient and cost -effective municipal services possible and continue to adhere to high standards of exceptional service to the community.

ATTACHMENT A
Summary of Proposed Appropriations for Fiscal Year 2023‐24

PREVOUSLY

ADOPTED PROPOSED INCREASE/
2023‐24 2023 ‐24 (DECREASE)
GENERAL FUND:

Mayor & Council 212,911 $               206,907$               (6,004)$ City Attorney 1,210,074              1,365,659             155,585 City Manager 8,801,576              9,202,952             401,376 Finance 7,571,847              8,319,559             747,712 Community Development 7,425,921              6,621,183             (804,738) Recreation & Parks 11,190,445            12,406,896           1,216,451 Fire 11,600,426            11,037,012           (563,414) Police 36,315,649            36,802,344           486,695 Public Works 4,635,807              4,873,576             237,769 Sub‐Total General Fund 88,964,656 $         90,836,088$         1,871,432$ MEASURE U FUND:

Police 11,408,242 $         12,267,733$         859,491$ Fire 15,375,612            17,888,663           2,513,051 Recreation & Parks 3,308,066              3,340,221             32,155 Library 1,089,891              1,187,827             97,936 Community Development 717,271                  963,250                 245,979 City Manager 22,500                    189,335                 166,835 Finance 2,600                      2,600                     ‐ Sub‐total Measure U Fund 31,924,182$         35,839,629$         3,915,447$ Total General Fund 120,888,838 $       126,675,717$       5,786,879$ ENTERPRISE FUNDS:

Water Resources 72,285,187 $         75,538,085$         3,252,898$ Solid Waste 36,574,626            38,570,472           1,995,846 Public Transit 18,226,280            19,091,609           865,329 Radio/Technology 996,069                  983,903                 (12,166) Total Enterprise Funds 128,082,162 $       134,184,069$       6,101,907$ SPECIAL REVENUE FUNDS:

Library 4,478,924 $           4,489,597$           10,673$ Park Acq. & Development 757,000                  757,000                 ‐ Park Residential Development Tax 150,000                 150,000                 ‐ County Measure A 8,269,439              8,398,204             128,765 CDBG‐Block Grant 1,527,337              1,416,952             (110,385) Economic Development 130,000                  130,000                 ‐ Public Access TV 292,877                  139,307                 (153,570) Traffic Safety 340,250                  340,250                 ‐ Total Special Revenue Funds 15,945,827$         15,821,310$         (124,517)$ TOTAL OPERATING FUNDS 264,916,827$       276,681,096$       11,764,269$ LANDSCAPE MAINTENANCE SERVICES &
MITIGATION FUNDS:

Growth Mitigation 8,087,295 $           8,192,295$           105,000$ Landscape Maintenance Services 6,793,343             6,777,855             (15,488) Stowell Parking & Lighting 32,117                    32,257                   140 Total Landscape Services & Mitigation 14,912,755$         15,002,407$         89,652$ Attachment APage 435 of 442
ATTACHMENT A
Summary of Proposed Appropriations for Fiscal Year 2023‐24

PREVOUSLY

ADOPTED PROPOSED INCREASE/
2023‐24 2023 ‐24 (DECREASE)
CAPITAL PROJECT FUNDS:

General Capital Projects Fund 13,245,088$         13,893,229$         648,141$ Gas Tax & Local Transportation 6,882,922             6,953,262             70,340 Developer/Grant Projects 2,077,000              2,090,060             13,060 Total Capital Project Funds 22,205,010$         22,936,551$         731,541$ INTERNAL SERVICE FUNDS:

Fleet Services 11,974,409 $         15,990,585$         4,016,176$ Bus., Comm., & Tel. Equipment 2,292,622             3,550,034             1,257,412 Local Economic Aug. Fund 6,084,115              8,861,825             2,777,710 Insurance & Workers' Comp. 14,539,039           14,421,500           (117,539) Total Internal Serivce Funds 34,890,185$         42,823,944$         7,933,759$ TOTAL CITY APPROPRIATIONS 336,924,777$       357,443,998$       20,519,221$ Attachment APage 436 of 442
ATTACHMENT B
Position Allocation by Department for Fiscal Year 2023‐24

DEPARTMENT STATUS
CURRENT AUTHORIZED
2023‐24
MID‐CYCLE PROPOSED
2023‐24

INCREASE/(DECREASE)
2023‐24

POS FTE POS FTE POS FTE
Police FT 193 188 203 192 10 4
PT 00 00 00
193 188 203 192 10 4
Fire FT 77 76 84 77 7 1
PT 11 11 00
78 77 85 78 7 1
Utilities FT 114 114 123 121 9 7
PT 22 22 00
116 116 125 123 9 7
Public Works FT 68 68 71 71 3 3
PT 11 11 00
69 69 72 72 3 3
Recreation & Parks FT 52 49 53 50 1 1
PT 56 44 56 44 0 0
108 93 109 94 1 1
Library FT 16 16 16 16 0 0
PT 12 10 14 11 2 2
28 26 30 27 2 2
Community Development FT 30 30 32 32 2 2
PT 00 00 00
30 30 32 32 2 2
City Attorney FT 55 55 00
PT 00 00 00
55 55 00
City Manager FT 37 36 39 37 2 1
PT 2 2 1 1 (1) (1)
39 38 40 38 1 0
Finance FT 24 24 24 24 0 0
PT 11 11 00
25 25 25 25 0 0
TOTAL FULL‐TIME (FT) FT 616 606 650 625 34 19
TOTAL PART‐TIME (PT) PT 75 59 76 60 1 1
GRAND TOTAL 691 665 726 685 35 20
Attachment BPage 437 of 442
ATTACHMENT C
Summary of Revenues for Fiscal Year 2023‐24
PREVIOUSLY MID ‐CYCLE

ADOPTED PROPOSED INCREASE
2023‐24 2023 ‐24 (DECREASE)
GENERAL FUND:

Taxes:

Property Tax 25,420,146 $      25,695,677$    275,531$
Sales Tax 31,306,928         32,187,866      880,938
Transient Occupancy Tax 3,232,576           4,273,426        1,040,850 Other Taxes 5,820,641           6,108,490        287,849 Total Taxes 65,780,291         68,265,459      2,485,168 Revenues from Other Agencies:

Other Subventions 732,025              486,486            (245,539) Total Revenues from Other Agencies 732,025              486,486            (245,539) Charges for Services
Impacted Soil & Surplus Water                             100,000            100,000 Other Charges for Services 4,854,298           5,546,279        691,981 Total Charges for Services 4,854,298           5,646,279        791,981 Other Revenues 578,363              692,056            113,693 Licenses, Permits, & Fines 3,197,050           3,241,634        44,584 Interest and Use of Property 1,563,513           2,959,513        1,396,000 Transfers 10,259,116         9,544,661        (714,455) Sub‐Total General Fund Revenues 86,964,656        90,836,088      3,871,432 MEASURE U FUND:

Transactions & Use Tax 26,214,000         26,715,000      501,000 Operating Transfers In
Interest and Use of Property 171,354              171,354 Sub‐Total Measure U Revenues 26,385,354        26,886,354      501,000 TOTAL GENERAL FUND REVENUES 113,350,010      117,722,442    4,372,432 ENTERPRISE FUNDS:

Water Resources:

Charges for Services 52,878,548         52,878,548
Interest and Use of Property 1,130,592           1,408,497        277,905 Other Revenue 731,285              735,425            4,140 Total Water Resources Revenue 54,740,425         55,022,470      282,045 Solid Waste:

Charges for Services 32,017,148         32,017,148
Interest and Use of Property 720,094              720,094 Other Revenue 126,555              126,605            50 Total Solid Waste Revenue 32,863,797         32,863,847      50 Public Transit:

Revenue From Other Agencies 16,199,083         16,199,083 Passenger Fares 931,109              931,109
Other Revenue 2,777,166           2,777,166
Total Public Transit Revenue 19,907,358         19,907,358 Attachment C

ATTACHMENT C
Summary of Revenues for Fiscal Year 2023‐24
PREVIOUSLY MID ‐CYCLE

ADOPTED PROPOSED INCREASE
2023‐24 2023 ‐24 (DECREASE)
Radio
Charges for Services 1,729,459           1,729,459
Total Radio Revenue 1,729,459           1,729,459
TOTAL ENTERPRISE FUND REVENUES 109,241,039      109,523,134    282,095 SPECIAL REVENUE FUNDS:

Library 3,761,909           4,209,987        448,078
Park Acquisition & Development 629,623              629,623 Park Residential Development Tax 66,880                 66,880 County Measure A 7,771,882           7,814,779        42,897 CDBG ‐ Block Grant 8,065,061           1,435,833        (6,629,228) Economic Development 6,880                   6,880
Public Access TV 351,078              320,828            (30,250) Traffic Safety 490,626              490,626
TOTAL SPECIAL REVENUE FUNDS 21,143,939        14,975,436      (6,168,503) TOTAL OPERATING FUNDS 243,734,988      242,221,012    (1,513,976) LANDSCAPE SERVICES, MITIGATION & GRANT FUNDS:

Growth Mitigation 4,733,351           4,733,351
Landscape Services 7,121,276           6,956,567        (164,709) Stowell Parking & Lighting 58,639                 86,800              28,161 Grant Funds 156,970              156,970
TOTAL ASSESSMENT,
MITIGATION & GRANT FUNDS 12,070,236        11,933,688      (136,548) CAPITAL PROJECTS FUNDS:

General Fund 6,706,654           10,211,934      3,505,280 Gas Tax & Local Transportation 5,809,449           5,900,964        91,515 Developer/Grant Street Projects 2,077,000           2,077,000 TOTAL CAPITAL PROJECTS FUNDS 14,593,103        18,189,898      3,596,795 INTERNAL SERVICE FUNDS:

Fleet Services 10,951,215         10,989,715      38,500 Equipment 4,400,941           4,400,941
Insurance 13,650,425         13,650,425
TOTAL INTERNAL SERVICE FUNDS 29,002,581        29,041,081      38,500 TOTAL CITY REVENUES 299,400,908$   301,385,679$  1,984,771$ Attachment C

Attachment D
Fund Analysis for Fiscal Year 2023‐24
Estimated Estimated
6/30/23 6/30/24
Unrestricted Expected   Unrestricted
Fund Fund  Balance Revenue Transfers  In Appropriations  Transfers Out Fund  Balance GENERAL FUND
General 10,071,923 $      81,291,427$      9,544,661$        87,098,784$     3,737,304$    10,071,923$ Measure U 15,931,355         26,886,354                                34,061,852       1,777,777      6,978,080 TOTAL GENERAL FUND 26,003,278        108,177,781      9,544,661          121,160,636     5,515,081      17,050,003 ENTERPRISE FUNDS
Water Resources 118,751,884       55,022,470                                74,058,003       1,480,082      98,236,269 Solid Waste 36,769,000         32,863,847                                37,295,431       1,275,041      31,062,375 Public Transit 1,673,263           19,907,358                                18,980,393       111,216         2,489,012 Radio 3,861,209           1,729,459          965,209            18,694            4,606,765 Total Enterprise Funds: 161,055,356      109,523,134                              131,299,036     2,885,033      136,394,421 SPECIAL REVENUE FUNDS
Library 279,613              1,543,877          2,666,110          3,954,618         534,979         3 Park Acq. & Dev. (Quimby) 175,107              629,623                                     757,000                                47,730 Park Residential Development Tax 1,901,750          66,880                                        150,000                                1,818,630 County Measure A 7,359,709           7,604,779          210,000             7,080,214         1,317,990      6,776,284 CDBG ‐ Block Grant 1,170,209           1,556,459                                  1,030,428         386,524         1,309,716 Economic Development 362,268              6,880                                          130,000                                239,148 Public Access TV 593,200              270,828             50,000                106,796            32,511            774,721 Traffic Safety 6,953                   370,000                                     40,250               300,000         36,703 Total Special Revenue Funds 11,848,809        12,049,326        2,926,110          13,249,306       2,572,004      11,002,935 TOTAL OPERATING FUNDS 198,907,443      229,750,241      12,470,771        265,708,978     10,972,118    164,447,359 LANDSCAPE SERVICES,
MITIGATION, & GRANT FUNDS
Growth Mitigation  34,081,635        4,733,351                                  8,192,295                             30,622,691 Landscape Services 1,011,937           4,775,476          2,181,091          4,784,269         1,993,586      1,190,649 Parking & Lighting District 276,309              86,800                                        30,960               1,297              330,852 Grant Funds  1,196,009          156,970                                                                                1,352,979 Total Landscape Services,
Mitigation, & Grant Funds 36,565,890        9,752,597          2,181,091          13,007,524       1,994,883      33,497,171 CAPITAL PROJECTS FUNDS
General Fund Capital Projects 4,005,030          2,100,000          8,111,934          13,893,229                           323,735 Gas Tax & Local Transportation 1,157,967          5,900,964                                  6,297,770         655,492         105,669 Developer / Grant Street Projects 1,122,014          2,077,000                                  2,090,060                             1,108,954 Total  Capital Projects Funds 6,285,011          10,077,964        8,111,934          22,281,059       655,492         1,538,358 INTERNAL SERVICE FUNDS
Fleet Services 11,815,378         10,989,715                                15,790,946       199,639         6,814,508 Equipment 19,557,718         4,400,941                                  3,545,375         4,659              20,408,625 LEAF Fund 18,914,237                                                                                8,861,825      10,052,412 Insurance Funds (445,849)             13,650,425                                14,346,320       75,180            (1,216,924) Total Internal Service Funds 49,841,484        29,041,081                                33,682,641       9,141,303      36,058,621 GRAND TOTAL 291,599,828$    278,621,883$    22,763,796$      334,680,202$  22,763,796$  235,541,509$ Resources Uses
Fiscal Year 2023‐24 Activity
Attachment  D

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA MARIA, CALIFORNIA, APPROVING AMENDMENTS TO THE
2023-24 MID-CYCLE CITY BUDGET AND AUTHORIZING

THE CITY MANAGER TO IMPLEMENT THE SAME

WHEREAS, the 2023-24 Budget of the City of Santa Maria had previously been adopted by the City Council; and

WHEREAS, certain amendments are appropriate at this time and the amended 2023-24 Budget is in final form and substance satisfactory to the City Council.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. All amendments as approved by the City Council as part of the Mid -Cycle Budget Review be incorporated into the 2023-24 Budget; and

2. Said Budget of the City of Santa Maria for 2023-24 and the summar ies incorporated by reference fully set forth herein, is hereby adopted in the form on file with the Chief Deputy City Clerk; and

3. The City Manager is hereby authorized to take all necessary actions to implement the provisions of the said Budget as adopted on this date, including future adjustments to the Budget for unanticipated expenditures offset by revenues, transfers of Budget amounts, and any other adjus tments approved by the City Council during the fiscal year including the approval of change order requests for City Council-approved projects; and

4. Approve the recommended new job classifications as presented in the mid - cycle Budget and delegate authority to the City Manager to approve their respective Job Description (Specifications); and

5. Authorize the City Manager or his designee to approve grant applications; and

6. Increase appropriations by $ 6 million in the General Capital Project Funds to complete the planned 2023-24 phase of the Fire Station #1 Expansion.

7. Increase appropriations by $800,000 in the Liability Insurance Fund for higher property insurance premiums; and

8. All other provisions of Resolution No. 2022-71 shall be in effect; and

9. The City Manager is hereby authorized to direct the operational carry -over of funds from 2022-23 to 2023-24 as determined by the Director of Finance; and

10. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeti ng of the City Council of the City of Santa Maria on this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager