Agenda packet — Santa Maria City Council, December 5, 2023 (part 2 of 5)

Mr. Shad Springer
June 30, 2023

Page 2 ends

Description Item
Primary Clarifiers (Table 2)
Secondary Treatinent (Table 2)
Disposal Capacity (Table 2)
Annual Biosokds Production (Table 2)
Tabk 4 — Max Daily flow lu Purrds
Table 5 - Interim Limits
Table 6 - Settleable solids
Table 7- Effluent Limitations (affer June
16, 2025)
1 fisted in Attachment 1
from NOA

27.92 mgd

17.7 rngd

8.0 mgd
123 acres
1,811 tons
S rngd
BOD5 = 60 mg//I 30 -day
average and 100 mgll max
day

0.1 mUL 30 -day average
and 0.3 mUL 7 -day average
Sodium = 105 mg/L
Carollo Comment/Action
Based on ere design criteria for the clarifiers this should be 30.6 mgd with both in operation.

Suggest showing this as a maximum month capacity of

39.000 Ib/d BODs based on the Record Drawings.

Need to specify averaging periods - average monthly?
max day? Need to make a case for much higher flows
that are adequately handled by the percolation ponds
without overflowing. Geosyntech report (page 15) says
less than 8 mgd. Geosyntech report says pond acreage
is 111.4 acres. Which is coact? Need to confine.

Need to confinn that this is correct
Need to argue that ponds handled peak daily flows of>
11 mgd in January 2023. and should not be limited to 8
mgd.

Ask forperfonnance-based Emits (see below). Change
to CBOD = 95th percentile 30 -day average over last 5
years and 950, percentile max day over last 5 years.

Should be 0.3 rnUL 30 -day average per General Permit
Tables and "Not Applicable" for 7 -day average
This should be Sodium = 230 mg/L to match the Upper
Guadalupe Basin Plan Objectives from the General
Permit.

Notes:
(1)
Additional Comments on Attachment 1
Last sentence in Section 3 before Table 4 should be revised to say: "After June 16, 2025, effluent limitations shown in Table 6 and Table 7 or the groundwater limitations shown in Table 8 shall apply depending on the compliance option selected by the City of Santa Maria." Section 3 B. Effluent Limitations: The General Permit (Section V.A, page 29) states interim limits will be "based" on the effluent limits specified in their current permit for 24 months. The City should determine if there is flexibility to apply performance -based effluent limits (PBELs) for two years. The EPA defines performance -based limits as the 95th percentile of representative monitoring data.

Table 5: Change to CBOD as indicated in table above as allowed in General Permit (Page 35, footnote 13), and include an option for developing alternate secondary standards. Add footnote "[2] City of Santa Maria must analyze effluent samples for CBOD and BODs for two years and report both results to the Water Board.

The results may be used to obtain discharge limitations that are equivalent to secondary standards per 40 CFR Section 133.105."
Table 6 Footnote 1: One year is not sufficient time for the City to plan out what type of treatment they will be using in the future. Change to 2025 to be consistent with the two-year interim limits.

Atty. rev. 2023; Risk rev. 2023 Page 12 of 23

Mr. Shad Springer
June 30, 2023

Page 3 ends

Comments on Monitoring and Reporting Program
Tables 3, 6, and 7 list several constituents that seem to be unrelated to the effluent discharge quality and the Basin Plan objectives. These include carbonate, bicarbonate, calcium, magnesium and potassium. Being required to sample, analyze, and report these constituents is an added effort and cost for the City that does not seem to be warranted. Removal of these constituents from Tables 3, 6, and 7 should be requested.

There are several footnotes to the tables that are inconsistent and need to be clarified or adjusted.

Section V —Groundwater Monitoring discusses that the current monitoring network is not adequate for assessment of upgradient and downgradient water quality trends. However, it appears that new monitoring wells are required only if the City chooses Option 2. This should be clarified with the Water Board since monitoring is stipulated to begin on October 1, 2023.

Carollo Approach
The proposed approach to addressing the above concerns prior to the July 14 deadline would be for Carollo to draft a letter from the City to be submitted to the Water Board before July 14. The letter will highlight the items above and request a follow-up meeting (Teams or in person) in August 2023, with the Water Board (Cecile Blancarte and Jennifer Epp) to discuss the items in question, and also to obtain clarity on other aspects of the NOA.

Short -Term Action — Next Three Months
The NOA sets out a specific timetable for delivery of a number of documents. Once the immediate response letter has been submitted to the Water Board the focus will be shifted to these items.

Compliance Plan
The City is required to submit a Compliance Plan by June 16, 2024. Work on developing the contents for this Plan will begin once the July 14th letter to the Water Board has been submitted. The Compliance Plan is required to include the selection of the Option under which the WWTP effluent is to be permitted; that is Option 1(meeting the General Permit plant effluent limits —shown in Table 7 of the NOA) or Option 2 (meeting the in -ground limits and implementing a groundwater monitoring plan). Deciding on Option 1 or Option 2 will depend on the Water Board's response to the City's July 14th letter, as well as other factors that will need to be investigated.

Another requirement of the Compliance Plan is the "treatment technology selection." The team may not be ready to identify the treatment train by June 16, 2024, but we should have a good idea of the type of secondary treatment alternatives that will be needed. Obtaining an extension for this requirement should not be an issue, but the City will have to demonstrate that progress is being made towards that goal.

Showing the Water Board the schedule for dPVPhpmPnt of the Master Plan and progress made to date would be good examples.

Monitoring Program
The NOA stipulates that the City must begin their Monitoring Program on October 1, 2023. Assuming that the City has an accepted Monitoring Plan in place, this should not be an issue. However, the Water Board did indicate that the current monitoring well arrangement is not adequate. This will require some Atty. rev. 2023; Risk rev. 2023 Page 13 of 23

Mr. Shad Springer
June 30, 2023

Page 4 ends

discussions with the Water Board and if modifications to the existing Monitoring Plan are required. then this work will need to begin right away, or the start date for monitoring would need to be pushed out.

The City will be required to submit reports and data via the State Board's GeoTracker. This will include providing well data that appears to be currently unavailable. The Carollo team can assist in preparing the City for these submittals and identifying the required well information.

Addressing Trickling Filter Performance and BOD5
We have already had one meeting with the City to discuss the current trickling filter performance with respect to achieving the BOD and TSS limits. The City will be undertaking additional sampling around the primary clarifiers and the trickling filters, and doing some dissolve oxygen measurements in the trickling filter effluent.

To keep up the momentum to finding an interim solution to achieve the 60 mg/L BOD5 limit if CBOD is not allowed, the following should also be undertaken:
• Begin regular (three times per week) sampling for CBOD and BOD5 in the wastewater influent, plant recycle (GT overflow and sludge bed decant flow), primary effluent and secondary effluent. These results will help to form the basis for further discussions with the Water Board regarding the Interim Limits, and also assist with optimization of the existing plant.
• Get Carollo's local Operations expert (Chris Vasquez) to the WWTP site to spend about a week with Russ Newman (Chief Plant Operator) to assist with the existing plant optimization. • Get staff from Carollo's in-house R&D group to the site for a few days to conduct on -site jar testing with ferric chloride and other coagulants to establish whether there would be a benefit to BOD5 removal by the addition of a coagulant upstream of the primary clarifiers. • Obtain the historical septage hauler information from the City based on prior sampling to evaluate the potential benefit to secondary effluent BOD5 of segregating the higher BOD5 septage loads from the plant, and treating them in the anaerobic digesters. This would likely be an interim operational measure to assist with meeting the effluent BOD5 limit of 60 mg/L.

Percolation Pond Capacity
During our interview, Carollo outlined a scientific approach to understanding the true percolation pond capacity and then enhancing it to provide sufficient plant discharge capacity for the future. During this "short-term" action period, the work would be focused on a desk top analysis to assess prior performance and understand prior investigations, current groundwater conditions, and past and current O&M procedures, and then beginning the field work. Our approach to the pond analysis is as follows:
• Desktop Study Memo. Gather existing geotechnical and subsurface data, interview operations staff about pond performance and their observations. Prepare briet memo with map showing all previous data collection sites and a recommended exploration work plan to the east of Black Road. This would be a collective effort with Yeh and GSI. This information will also help to support further discussions with the Water Board regarding the pond (and WWTP) capacity. • Field Investigation and Reporting. Water balance study to estimate the existing percolation rate.

Subsurface investigation (Borings, CPT testing, Test pits) and laboratory testing. A summary report of Atty. rev. 2023; Risk rev. 2023 Page 14 of 23

Mr. Shad Springer
June 30, 2023

Page 5 ends

data, estimated percolation rate, and recommendations for a pilot study or reconstruction would be prepared.
• Pilot Study. If implemented, this would demonstrate to the Water Board project progress and phased implementation to improve percolation.

CEQA Process
We know that CEQA will not be triggered for any pond investigations on the existing site. But disturbing any new site area would likely trigger CEQA. The first step in the CEQA process is to determine whether the project is exempt from CEQA or what level of CEQA response is required. This would involve completing an Initial Study and completing the Environmental Checklist. However, assuming that some facilities, at a minimum the additional pond area, will be required on the east side of Black Road, then it is unlikely that the project will be exempt trom CEQA. Once the pond capacity analysis is completed, it will be clearer it the City can optimize existing ponds or will be required to construct new ponds, triggering additional CEQA review.

Since the full EIR process is likely to take more than one year to complete, this work will need to get started early in the overall program. Carollo will contract with LSA so that they can develop a CEQA strategy and begin work as the rest of the project develops. Known habitat and cultural areas can be identified early and used in the siting analysis (Medium Term — see below) to help with decisions on plant layouts and location of new facilities. LSA will also be able to work with the engineering team during alternatives analysis to identify the CEQA and environmental permitting implications of different alternatives. The Initial Study and completion of the environmental field work will take place for the larger expanded WWTP once the preliminary layouts and impact areas have been determined.

Medium Term Action Plan — Next 12-15 months
Additional Reporting Requirements
As discussed above, there are a number of regulatory efforts required as part of the Monitoring and Reporting Program that extend beyond the initial Short -Term period, including the development of the Operations and Maintenance Manual by June 2024, the Time Schedule Compliance Plan by June 2024, and the Groundwater Monitoring Plan by October 2024, if the City chooses in ground compliance (Option 2).

Completion of additional groundwater and effluent monitoring will be required to determine if in -ground compliance is a valuable strategy for any of the constituents. This additional monitoring should be conducted starting early in the project to determine these medium -term actions.

In addition, a Climate Change Adaptation Plan is due June 2025, but includes a number of analyses that will need to be started within the first year.

Master Plan Development
Based on the detailed schedule presented in our Statement of Qualifications, several tasks associated with the Master Plan will be completed during the medium -term period, as summarized in Table 2. The task numbers and description correspond to the Scope of Work included in the Statement of Qualifications.

Atty. rev. 2023; Risk rev. 2023 Page 15 of 23

Mr. Shad Springer
June 30, 2023

Page 6 ends

Table 2— Master Plan Tasks Anticipated to be Completed During the Medium -Term Period Task Number and Description
Task 2 — Data Collection
Task 3.2 — Basis of Planning
Task 3.3 — Wastewater Characterization and Piocess Modeling Task 3.4 — Existing Facilities Condition Assessment
Task 3.6 — Treatment Approach
Task 3.8 — Solids Treatment and Handling
Task 3.9 — Energy Management
Status at the end of the
Medium Term
Complete
Complete
Complete
Complete
Complete
Underway
Underway
As discussed above, the completion of these Master Plan tasks will allow an informed discussion of the CEQA impliratinne for layrnits and will then allnw I SA to start their C.FQA process. Parallel to this Master Plan work and initial CEQA evaluation, a funding strategy will be developed. This is especially important for understanding if CEQA Plus is required for federal funding sources, which would trigger additional biological and cultural evaluations.

Summary and Next Steps
We trust that the above supplemental information outlining the next steps to be taken based on the NOA issued by the Water Board, is useful to you.

Understanding the urgency regarding the items identified under immediate and short-term actions and that it will take some time to finalize an agreement for the Program Management Services, we suggest that the City issue Carollo a Notice to Proceed and a not -to -exceed task order for $75,000, to be billed based on time and materials. This will allow us to continue our on -going assistance to provide the City with the support needed to begin work on the tasks included in the attached Exhibit A.

We appreciate the opportunity to provide these services to support the City and look forward to working with you and your staff.

Sincerely,
CAjt'OLLO ENGINEERS, INC.

J.G. Juby, PhD E
Program Director
GJ:pg
Enclosures: Exhibit A — Interim Scope of Work
Atty. rev. 2023; Risk rev. 2023 Page 16 of 23

Exhibit A
City of Santa Maria
Wastewater Treatment Plant Program Management Services
Interim Scope of Work
Carollo Engineers, Inc.

June 30, 2023
Background
I he City of Santa Maria (City) has selected Carollo Engineers (Carollo) to provide Wastewater Treatment Plant Program Management Services. Due to the urgency to respond to the Notice of Applicability (NOA) issued by the Central Coast Water Board (Water Board) on June 16, 2023, Carollo will begin some early work to assist the City with the response to the Water Board.

In addition, Carollo will also begin work on some other tasks related to the NOA that need to be started promptly as they provide additional information that will be needed as part of follow-up discussions with the Water Board. It is anticipated that the interim scope period may last up to three months, by which time the Agreement for the overall project should be in place. The scope of work items to be undertaken during the interim period are described below. Since there will be ongoing adjustments to the scope to accommodate changes needed based on feedback from the Water Board, some of these tasks will not be completed until the full contract is in place.

Scope of Work
Task A — Project Management and Administration
Provide project. rrranagernenl during the inlerirrr scope phase lu rnunilor work, budget, and schedule.

This includes invoice preparation and coordination with the City's Project Manager and staff, Carollo's project team, and subconsultants.

As part of this project management task, we will complete the following:
a. Set up the project and project controls, contract with required subconsultants for work in Tasks B and C, and establish a regular meeting schedule with the City for this interim period. b. Maintain on a monthly basis an updated project schedule outlining all tasks, durations, milestone dates, and the City's review periods.
c. Provide quality assurance and quality control (QA/QC) reviews throughout the course of the project. Provide reviews of all work products, incorporate the City's comments into all deliverables while adhering to industry practices and standards. d. Throughout the course of the interim period, we anticipate up to three monthly meetings, and weekly Teams meetings with City staff.
e. Other meetings will be scheduled as needed.

Deliverables: Monthly updated project schedule, meeting agendas, meeting minutes, monthly invoices, and presentation materials, all submitted in electronic (PDF) format. 1 Atty. rev. 2023; Risk rev. 2023 Page 17 of 23

Task B — Immediate Action Assistance
We will complete the following for this Task:
a. Contract with Larry Walker and Associatcs to provide permit assistance. b. Develop a draft letter response to the Water Board based on concerns/issues identified in the NOA and submit it to the City for review by July 6'h. The letter will address the issues highlighted in our letter to the City dated June 30, 2023, under the Immediate Action heading and will request a follow up meeting (Teams or in person) in August 2023, with the Water Board (Cecile Blancarte and Jennifer Epp) to discuss the items in question, and also to obtain clarity on other aspects of the NOA.
c. Meet virtually with the City as needed to discuss the draft response and make edits as needed.

The City will submit the response to the Water Board by July 14, 2023. d. Meet virtually or in person with the Water Board in August 2023, to discuss the City's response to the NOA.
e. Provide additional follow-up with the City based on the August meeting.

Deliverables: Dull letter W lire Wulet Buurd, updules W the leiler, final letter lu the Wuler Buurd, ull in electronic format.

Task C — Short Term Action Assistance
We will assist the City as identified in our letter dated June 30, 2023, under the Short -Term Action heading, including:
a. Beginning work on the Compliance Plan. The City is required to submit a Compliance Plan by June 16, 2024. Work on developing thc contents for this Plan will begin once thc July 14th letter to the Water Board has been submitted —Task B. The Compliance Plan is required to include the selection of the Option under which the WWTP effluent is to be permitted; that is Option 1 (meeting the (ieneral Permit plant effluent limits —shown in (able / of the NOA), or Option 2 (meeting the in -ground limits and implementing a groundwater monitoring plan). Deciding on Option 1 or Option 2 will depend on the Water Board's response to the City's July 14th letter, as well as other factors that will need to be investigated. Work on the Compliance Plan will not be completed during the Interim period.
b. Beginning work on the Monitoring Program. The NOA stipulates that the City must begin their Monitoring Program on October 1, 2023. Assuming the City has an accepted Monitoring Plan in place, this should not be an issue. However, the Water Board did indicate that the current monitoring well arrangement is not adequate. This will require some discussions with the Water Board, and if modifications to the existing Monitoring Plan are required, this work will need to begin right away, or the start date for monitoring would need to be pushed out. c. Assisting the City with setting up the GeoTracker site for uploading reports for the Water Board. d. Assisting the City with addressing the trickling filter performance and BOD5, including:
i. Providing on -going support to the City during the investigation of options to improve thc current trickling filter performancc.
2 Atty. rev. 2023; Risk rev. 2023 Page 18 of 23

ii. Providing plant operational support with an on -site person (Chris Vasquez) to work with the Chief Plant Operator for about a week to see if trickling filter performance can be improved.
iii. Developing a testing plan and conduct on -site jar testing for DOD5 removal in the primary clarifiers, evaluate the performance, and prepare Technical Memorandum No. 1 summarizing the results and recommendations.
iv. Reviewing the historical septage hauler information. Prepare Technical Memorandum No. 2 summarizing the findings and recommendations with respect to the ability to segregate some septage flow and treat it directly in the anaerobic digesters.
e. Begin work on the Percolation Pond Capacity Analysis. Hire GSI and Yeh and Associates to conduct the analysis. Complete a desktop analysis to review existing geotechnical and subsurface data, historical performance, and previous studies and interviews with WWTP staff.

Compile Technical Memorandum No. 3 to summarize data and recommend next steps. f. Begin work on the CEQA/Environmental process. Hire LSA to begin work on developing the CEQA strategy for the Program and to start identifying known habitat and cultural areas that will assist with siting of future facilities. Additional CEQA activities will follow as part of the subsequent Scope of Work.

Deliverables: Draft and final versions of Technical Memoranda No. 1, 2, and 3, all in electronic format.

Assumptions
The following assumptions were used to develop the above Scope of Work:

1. This interim scope of work phase is expected to last up to three months.

2. Not all tasks will be fully completed as part of the interim phase. Any open tasks will be rolled over into the subsequent Scope of Work.

3. Carollo will complete the work on a time and material basis with a not -to -exceed limit of $75,000.
3 EXHIBIT "C"
Atty. rev. 2023; Risk rev. 2023 Page 19 of 23

PAYMENT
I. PROGRESS AUTHORIZATION
Written authorization to proceed from the City authorizes the Contractor to generate the

NOT -TO -EXCEED COST OF SEVENTY-FIVE THOUSAND DOLLARS AND ZERO CENTS ($75,000.00) IN FEES for above listed tasks.

TOTAL NOT -TO -EXCEED COSTS: $75,000.00
The City reserves the right to withhold any amount if unsatisfied with the service the Contractor provides or if the Contractor exceeds this written authorization for the above not -to -exceed costs.

II. INVOICE PROCEDURE
The Contractor's bills shall be substantiated by appropriate documentation, and include an itemized listing of personnel, sub -Contractors, and other direct costs incurred.

Atty. rev. 2023; Risk rev. 2023 Page 20 of 23

EXHIBIT "D"

INSURANCE
Contractor shall procure and maintain, for the duration of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, his/her agents, representatives, or employees. If Contractor maintains broader coverage and/or higher limits than the minimums shown below, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Contractor.
1) Minimum Scope of Insurance
a) Coverage shall be at least as broad as:
i) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.
ii) Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1); or if Contractor has no owned autos, covering hired (Code 8) and non -owned autos (Code 9).
iii) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
iv) Errors and Omissions liability insurance appropriate to the Contractor's profession. v) Contractor's Pollution liability insurance applicable to the work being performed. vi) Cyber Liability insurance as applicable to the work being performed and appropriate to the Contractor's profession. Such coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. 2) Minimum Limits of Insurance
a) Contractor shall maintain limits no less than:
i) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
ii) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. iii) Workers' Compensation: Statutory limits.
iv) Employer's Liability: $1,000,000 per accident for bodily injury or disease. v) Errors and Omissions Liability: $1,000,000 per occurrence or claim, $2,000,000 aggregate.
vi) Contractors Pollution Liability: $2,000,000 per occurrence or claim, $2,000,000 aggregate.
vii) Cyber Liability: $2,000,000 per occurrence or claim, $2,000,000 aggregate. 3) Self -insured Retentions
Atty. rev. 2023; Risk rev. 2023 Page 21 of 23

Self -insured retentions must be declared to and approved by City. City may require Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.
4) Other Insurance Provisions
a) The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
i) The City of Santa Maria, its officers, officials, employees, and volunteers are to be covered as additional insureds on the policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used). ii) For any claims related to this project, Contractor's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of Contractor's insurance and shall not contribute with it. iii) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be cancelled or reduced, except with notice stating the title of this Agreement to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return -receipt requested. iv) Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not City has received a waiver of subrogation endorsement from the insurer. v) If any of the required policies provide claims -made coverage:
(1) The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
(2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. (3) If coverage is cancelled or non -renewed, and not replaced with another claims - made policy form with a Retroactive Date prior to the Agreement effective date, the Contractor must purchase "extended reporting" coverage for a minimum of five (5) years after completion of work.
5) Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
6) Verification of Coverage
a) Contractor shall furnish City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. b) All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work Atty. rev. 2023: Risk rev. 2023 Page 22 of 23

beginning shall not waive Contractor's obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications, at any time. 7) Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Atty. rev. 2023; Risk rev. 2023 Page 23 of 23

(Revised) Contract from City of Santa Maria for
E -Signing
Final Audit Report
2023-09-11
Created: 2023-09-11
By: Michelle Ruiz ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAGkafcBPrjIzDPJGIHYLOS-bGyewrwZ5c "(Revised) Contract from City of Santa Maria for E -Signing" Hist ory
n Document created by Michelle Ruiz ([email protected]) 2023-09-11 - 4:07:18 PM GMT
E7b Document emailed to Graham Juby ([email protected]) for signature 2023-09-11 - 4:07:53 PM GMT
n Email viewed by Graham Juby ([email protected])
2023-09-11 - 4:48:21 PM GMT
!}� Signer Graham Juby ([email protected]) entered name at signing as Graham JG Juby 2023-09-11 - 4:50:07 PM GMT
Document e -signed by Graham JG Juby ([email protected]) Signature Date: 2023-09-11 - 4:50:09 PM GMT - Time Source: server E. Document emailed to Anne Prudhel ([email protected]) for signature 2023-09-11 - 4:50:11 PM GMT
n Email viewed by Anne Prudhel ([email protected])
2023-09-11 - 4:51:54 PM GMT
Signer Anne Prudhel ([email protected]) entered name at signing as Anne E. Prudhel 2023-09-11 - 4:52:18 PM GMT
DQ. Document e -signed by Anne E. Prudhel ([email protected]) Signature Date: 2023-09-11 - 4:52:20 PM GMT - Time Source: server 0 Agreement completed.
2023-09-11 - 4:52:20 PM GMT
Powered by
Adobe
Acrobat Sign

CrCarvilo.

CERTIFICATION
2795 Mitchell Drive
Walnut Creek, California 94598
925-932-1710
carollo.com
This is to certify that the undersigned, Michael W. Barnes, as Corporate Secretary and General Counsel for Carollo Engineers, Inc., is authorized to state and certify: That by corporate policy approved by the Board of Directors on 02/07/2011, Graham Juby, Vice President, is authorized to execute engineering service agreements for the usual and customary engineering business of the company.

Dated: April 27, 2023
I4
Michael W. Barnes
Corporate Secretary & General Counsel
7honias Watson
Thomas Watson (Sep 11, 2023 14:00 PDT)

ACC) R/D

CERTIFICATE OF LIABILITY INSURANCE
7/4/2024

DATE (MM/DD/YYYY)
8/2/2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER
Lockton Companies
444 W. 47th Street, Suite 900
Kansas City MO 64112-1906
(816) 960-9000
[email protected]
INSURED CAROLLO ENGINEERS, INC.
1529506 2795 MITCHELL DR.

WALNUT CREEK CA 94598-1601

CONTACT
NAME:

PHONE
_LAIC. No. Ext):

E-MAIL
ADDRESS:

FAX
(A/C, No):

INSURER(S) AFFORDING COVERAGE
INSURER A : Zurich American Insurance Company
INSURER B : Allied World Surplus Lines Insurance Company INSURER c: Indian Harbor Insurance Company
INSURER D : Travelers Property Casualty Company of America NAIC #
16535
24319
36940
25674
INSURER E :

INSURER F :

COVERAGES
CERTIFICATE NUMBER: 19791623
REVISION NUMBER:

XXXXXXX

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR

TYPE OF INSURANCE

ADDL I SD
SUBR
WVD

POLICY NUMBER

POLICY EFF
(MMIDD/YYYY)

POLICY EXP
(MM/DD/YYYY)
LIMITS
A
X

COMMERCIAL GENERAL LIABILITY
Y
Y
GLO 9730569
7/4/2023
7/4/2024

EACH OCCURRENCE
$ 1,000,000

CLAIMS -MADE
X
OCCUR

DAMAGE TO
PREMISES (EaENTEDoccurrence)
$ 1.000,000
MED EXP (Any one person)
$ 25,000

PERSONAL & ADV INJURY
$ 1,000,000
GEN'L
AGGREGATE LIMIT APPLIES PER:

GENERAL AGGREGATE
$ 2,000,000
POLICY
X
JEC
LOC

PRODUCTS - COMP/OP AGG
$ 2,000,000
OTHER:
$
A

AUTOMOBILE LIABILITY
y
y
BAP 9730571
7/4/2023
7/4/2024

COMBINED SINGLE LIMIT
(Ea accident)
$ 2,000,000
X

ANY AUTO
BODILY INJURY (Per person)
$ XXXXXXX
OWNED

AUTOS ONLY

SCHEDULED
AUTOS
BODILY INJURY (Per accident)
$ XXXXXXX
Xv
HIRED

AUTOS ONLY
v

NON -OWNED

AUTOS ONLY

PROPERTY DAMAGE
(Per accident)
$ XXXXXXX
DED: COMP/COLL
8 1,000
D
x

UMBRELLA LIAB
X
OCCUR
Y
Y
CUP -1S956429
7/4/2023
7/4/2024

EACH OCCURRENCE
$ 1,000,000

EXCESS LIAB

CLAIMS -MADE

AGGREGATE
$ 1,000,000
DED RETENTION $
$ XXXXXXX
A

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
N
WC 9730570
7/4/2023
7/4/2024
X
PER
srATUTE
OTH-
ER

ANY PROPRIETORIPARTNERIEXECUTIVE
YIN
E.L. EACH ACCIDENT
$ 1,000,000
OFFICERIMEMBER EXCLUDED?
(Mandatory In NH)
N
N /A
E.L. DISEASE - EA EMPLOYEE
$ 1,000,000
If yes, describe under
DESCRIPTION OF OPERATIONS below
E.L. DISEASE - POLICY LIMIT
$ 1.000,000
B
C

PROFESSIONAL

LIABILITY

CYBER LIABILITY
N
N
0313-9010
MTP9041388
7/4/2023
7/4/2023
7/4/2024
7/4/2024
4,000,000 CLAIM / AGGREGATE
LIMIT: $2,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required) THIS CERTIFICATE St PI ILSEDES ALL PREVIOUSLY ISSUED CERTIFICATES FOR THIS HOLDER, APPLICABLE TO THE CARRIERS L STED AND THE POLICY TERM(S) REFERENCED.

WWTP Program Management Services. City of Santa Maria, its officers, officials, employees, and volunteers are additional insureds as respects general liability and auto liability, and these coverages are primary and non-contributory, as required by written contract. (SEE ATTACHED.) Mbeac 4i juerhera-
Mellissa Guerrero (Sep 14, 2023 07:35 PDT)

APPROVED TO FORM

CERTIFICATE HOLDER
CANCELLATION See Attachments
19791623
City of Santa Maria
Attn: Director of Utilities
Utilities Dept.
2065 East Main St.

Santa Maria CA 93454

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATN
4/ 4,17,--a
ACORD 25 (2016/03)
©198811015 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD

CONTINUATION DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES!EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS (Use only if more space is required) Waiver of subrogation applies to general liability and auto liability where allowed by state law and as required by written contract. General Liability, Auto Liability & Workers' Compensation Deductibles: N/A. Professional Liability Deductible:
$500,000. The excess/umbrella liability is considered follow form over the general liability, auto liability and employer's liability subject to the policy terms, conditions and exclusions. Thirty (30) days' notice of cancellation by the insurer will be provided to the Certificate Holder, ten (10) days' notice in the event of non-payment of premium. Pollution liability is included with professional liability.

ACORD 25 (2016/03)
Certificate Holder ID: 19791623

Attachment Code: D573119 Certificate ID: 19791623
POLICY NUMBER: 0313-9010

ENDORSEMENT

NOTICE OF CANCELLATION TO DESIGNATED ENTITY(TES)
Policy No.

Issued to
Issued by
0313-9010
Carollo Engineers, Inc.

Allied World Surplus Lines Insurance Company
In consideration of the premium charged, it is hereby agreed that Section VIII. CONDITIONS, Subsection H. is amended to include the following:

In the event of cancellation or non -renewal of this Policy, the Company will provide a thirty -day notice to the entity with whom the Named Insured has agreed, pursuant to a prior written contract, to provide to such entity with a notice of cancellation or non -renewal. Provided, however, that in the event of cancellation for non-payment of premium, the Company shall provide to such entity a ten-day notice of cancellation before the effective date of cancellation.

In addition, in the event of a reduction in the Limits of Liability of this Policy not resulting from payment of Damages or Defense Expenses, the Company will provide a sixty-day notice to the entity with whom the Named Insured has agreed with, pursuant to a prior written contract, to provide such entity with a notice of such reduction in limits.

As a condition precedent to providing the notices specified above, the Named Insured will provide the Company, within ten (10) business days of the Company's request, the names and addresses of the entities with whom the Named Insured agreed to provide the notices specified above. In the event the Named Insured omits or fails to provide the foregoing information, the Company shall not provide such notices.

The Company's failure to provide such notices will not extend the Policy cancellation date, negate cancellation, non -renewal or reduction in limits, of this Policy. Nor shall such failure be cause for legal action against the Company.

All other terms, conditions and limitations of this Policy shall remain unchanged.

CEI Manu (06/23)

Attachment Code: D586606 Certificate ID: 19791623
POLICY NUMBER:CUP-1S956429 ISSUE DATE: 7/4/2023
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DESIGNATED ENTITY - NOTICE OF

CANCELLATION PROVIDED BY US
This endorsement modifies insurance provided under the following:

ALL COVERAGE PARTS INCLUDED IN THE POLICY

SCHEDULE
Cancellation: Number of Days Notice of Cancellation: 30 Person or organization:

ANY PERSON OR ORGANIZATION TO WHOM YOU HAVE AGREED IN A WRITTEN

CONTRACT THAT NOTICE OF CANCELLATION OF THIS POLICY WILL BE GIVEN, BUT ONLY IF 1. YOU SEND US A WRITTEN REQUEST TO PROVIDE SUCH NOTICE,

INCLUDING THE NAME AND ADDRESS OF SUCH PERSON OR ORGANIZATION, AFTER

THE FIRST NAMED INSURED RECEIVES NOTICE FROM US OF THE CANCELLATION OF THIS POLICY, AND 2. WE RECEIVE SUCH WRITTEN REQUEST AT LEAST 14 DAYS BEFORE. THE BEGINNING OF THE APPLICABLE NUMBER OF DAYS SHOWN IN THIS ENDORSEMENT.

Address:

PROVISIONS
If we cancel this policy for any statutorily schedule above. We will mail such notice to the permitted reason other than nonpayment of address shown in the schedule above at least premium, and a number of days is shown for the number of days shown for cancellation in cancellation in the schedule above, we will mail the schedule above before the effective date of notice of cancellation to the person or organization cancellation. shown in the
IL T4 05 03 11 (c) 2011 The Travelers Indemnity Company. All rights reserved.

Attachment Code: D586786 Certificate ID: 19791623
POLICY NUMBER: BAP 9730571
Notification to Others of Cancellation, Nonrenewal
or Reduction of Insurance
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

Commercial Automobile Coverage Part
A. If we cancel or non -renew this Coverage Part by written notice to the first Named Insured for any reason other than nonpayment of premium, we will mail or deliver a copy of such written notice of cancellation or non -renewal:

1. To the name and address corresponding to each person or organization shown in the Schedule below; and

2. At least 10 days prior to the effective date of the cancellation or non -renewal, as advised in our notice to the first Named Insured, or the longer number of days notice if indicated in the Schedule below.

B. If we cancel this Coverage Part by written notice to the first Named Insured for nonpayment of premium, we will mail or deliver a copy of such written notice of cancellation to the name and address corresponding to each person or organization shown in the Schedule below at least 10 days prior to the effective date of such cancellation.

C. If coverage afforded by this Coverage Part is reduced or restricted, except for any reduction of Limits of Insurance due to payment of claims, we will mail or deliver notice of such reduction or restriction:

1. To the name and address corresponding to each person or organization shown in the Schedule below; and

2. At least 10 days prior to the effective date of the reduction or restriction, or the longer number of days notice if indicated in the Schedule below.

D. If notice as described in Paragraphs A., B. or C. of this endorsement is mailed, proof of mailing will be sufficient proof of such notice.

SCHEDULE
Name and Address of Other Person(s)
/ Organization(s): _
Number of Days Notice:

All certificate holders where notice of cancellation
is required by written contract with the Named
Insured_
30 All other terms and conditions of this policy remain unchanged.

U -CA -811-A CW (05/10)
Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Attachment Code: D586789 Certificate ID: 19791623
WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 99 06 34

NOTIFICATION TO OTHERS OF CANCELLATION, NONRENEWAL OR

REDUCTION OF INSURANCE ENDORSEMENT
This endorsement is used to add the following to Part Six of the policy.

PART SIX

CONDITIONS
A. If we cancel or non -renew this policy by written notice to you for any reason other than nonpayment of premium, we will mail or deliver a copy of such written notice of cancellation or non -renewal to the name and address corresponding to each person or organization shown in the Schedule below. Notification to such person or organization will be provided at least 10 days prior to the effective date of the cancellation or non -renewal, as advised in our notice to you, or the longer number of days notice if indicated in the Schedule below.

B. If we cancel this policy by written notice to you for nonpayment of premium, we will mail or deliver a copy of such written notice of cancellation to the name and address corresponding to each person or organization shown in the Schedule below at least 10 days prior to the effective date of such cancellation.

C. If coverage afforded by this policy is reduced or restricted, except for any reduction of Limits of Liability due to payment of claims, we will mail or deliver notice of such reduction or restriction to the name and address corresponding to each person or organization shown in the Schedule below. Notification to such person or organization will be provided at least 10 days prior to the effective date of the reduction or restriction, or the longer number of days notice if indicated in the Schedule below.

D. If notice as described in Paragraphs A., B. or C. of this endorsement is mailed, proof of mailing will be sufficient proof of such notice.

SCHEDULE
Name and Address of Other Person(s)/Organizations:

All Certificate holders where notice of
cancellation is required by written contract with
the Named
Number of Days Notice:
30 All other terms and conditions of this policy remain unchanged.

This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Policy No. WC 9730570
Insured CAROLLO ENGINEERS, INC.

Insurance Company Zurich American Insurance Company
WC 99 06 34

Attachment Code: D573125 Certificate ID: 19791623
POLICY NUMBER: BAP 9730571 COMMERCIAL AUTO
CA 20 48 10 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

DESIGNATED INSURED FOR

COVERED AUTOS LIABILITY COVERAGE
This endorsement modifies insurance provided under the following:

AUTO DEALERS COVERAGE FORM

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement.

This endorsement identifies person(s) or organization(s) who are "insureds" for Covered Autos Liability Coverage under the Who Is An Insured provision of the Coverage Form. This endorsement does not alter coverage provided in the Coverage Form.

This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below.

SCHEDULE
Name Of Person(s) Or Organization(s):

Any person or organization to whom or which you are required to provide additional insured status or additional insured status on a primary, non-contributory basis, in a written contract or written agreement executed prior to loss, except where such contract or agreement is prohibited by law.

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

Each person or organization shown in the Schedule is
an "insured" for Covered Autos Liability Coverage, but
only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured provision
contained in Paragraph A.1. of Section II — Covered
Autos Liability Coverage in the Business Auto and
Motor Carrier Coverage Forms and Paragraph D.2. of
Section 1 — Covered Autos Coverages of the Auto
Dealers Coverage Form.

CA 20 48 10 13

Attachment Code: D573120 Certificate ID: 19791623

POLICY NUMBER COMMERCIAL AUTO
BAP 9730571
CA 04 44 10 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US (WAIVER OF SUBROGATION)
This endorsement modifies insurance provided under the following:

AUTO DEALERS COVERAGE FORM

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement.

This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below.

Named Insured: Zurich American Insurance Company
Endorsement Effective Date: 7/4/2023

SCHEDULE
Name(s) Of Person(s) Or Organization(s):

Any person or organization you are required to waive your rights of recovery in a written contract, agreement or permit with the named insured.

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

The Transfer Of Rights Of Recovery Against
Others To Us condition does not apply to the
person(s) or organization(s) shown in the Schedule,
but only to the extent that subrogation is waived prior to the "accident" or the "loss" under a contract with
that person or organization.

CA04441013

Attachment Code: D586787 Certificate ID: 19791623
POLICY NUMBER: GLO 9730569
Notification to Others of Cancellation, Nonrenewal
or Reduction of Insurance
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

Commercial General Liability Coverage Part
Liquor Liability Coverage Part
Products/Completed Operations Liability Coverage Part
A. If we cancel or non -renew this Coverage Part(s) by written notice to the first Named Insured for any reason other than nonpayment of premium, we will mail or deliver a copy of such written notice of cancellation or non -renewal:

1. To the name and address corresponding to each person or organization shown in the Schedule below; and

B. If we cancel this Coverage Part(s) by written notice to the first Named Insured for nonpayment of premium, we will mail or deliver a copy of such written notice of cancellation to the name and address corresponding to each person or organization shown in the Schedule below at least 10 days prior to the effective date of such cancellation.

C. If coverage afforded by this Coverage Part(s) is reduced or restricted, except for any reduction of Limits of Insurance due to payment of claims, we will mail or deliver notice of such reduction or restriction:

1. To the name and address corresponding to each person or organization shown in the Schedule below; and

2. At least 10 days prior to the effective date of the reduction or restriction, or the longer number of days notice if indicated in the Schedule below.

D. If notice as described in Paragraphs A., B. or C. of this endorsement is mailed, proof of mailing will be sufficient proof of such notice.

SCHEDULE
Name and Address of Other Person(s)
/ Organization(s):

Number of Days Notice:

All certificate holders where notice of cancellation
is required by written contract with the Named
Insured_
All other temis and conditions of this policy remain unchanged.

U -GL -1447-A CW (05/10)
30 Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Waiver Of Subrogation (Blanket) Endorsement
Policy No. GLO 9730569
Eff. Date of Pol. 7/4/2023
Exp. Date of Pol. 7/4/2024
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

Commercial General Liability Coverage Part
The following is added to the Transfer Of Rights Of Recovery Against Others To Us Condition:

If you are required by a written contract or agreement, which is executed before a loss, to waive your rights of recovery from others, we agree to waive our rights of recovery. This waiver of rights applies only with respect to the above contract(s) and shall not be construed to be a waiver with respect to any other operations in which the insured has no contractual interest.

U -GL -925-A CW (12/01)

Attachment Code: D573129 Certificate ID: 19791623
POLICY NUMBER: GLO 9730569 COMMERCIAL GENERAL LIABILITY CG 20 37 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - COMPLETED OPERATIONS
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Additional Insured Person(s)
Or Organization(s)
Location And Description Of Completed Operations
Any person or organization, other than an architect,
engineer or surveyor, whom you are required to add as
an additional insured under this policy under a written contract mark or written agreement executed prior to
loss.

Any Location or project, other than a wrap-up or other
consolidated insurance program location or project for
which insurance is otherwise separately provided to
you by a wrap-up or other consolidated insurance
program
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Section II — Who Is An Insured is amended
to include as an additional insured the
person(s) or organization(s) shown in the
Schedule, but only with respect to liability for
"bodily injury" or "property damage" caused,
in whole or in part, by "your work" at the
location designated and described in the
Schedule of this endorsement performed for
that additional insured and included in the
"products -completed operations hazard".

However:

1. The insurance afforded to such additional
insured only applies to the extent
permitted by law; and

2. If coverage provided to the additional insured
is required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.

B. With respect to the insurance afforded to
these additional insureds, the following
is added to Section III — Limits Of
Insurance:

If coverage provided to the additional
insured is required by a contract or
agreement, the most we will pay on
behalf of the additional insured is the
amount of insurance:

1. Required by the contract or agreement;
or

2. Available under the applicable Limits of
Insurance;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance.

CG 20 37 12 19

Attachment Code: D573181 Certificate ID: 19791623
POLICY NUMBER: GLO 9730569

COMMERCIAL GENERAL LIABILITY
CG 20 10 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - SCHEDULED PERSON OR

ORGANIZATION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Name Of Additional Insured Person(s)
Or Organization(s)
Location(s) Of Covered Operations
Any person or organization, other than an architect,
engineer or surveyor, whom you are required to add as
an additional insured under this policy under a written contract or written agreement executed prior to loss.

1. Your acts or omissions; or

2. The acts or omissions of those acting on your
behalf;
in the performance of your ongoing operations
for the additional insured(s) at the location(s)
designated above.

However:

1. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and

2. If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured will
not be broader than that which you are required
by the contract or agreement to provide for such
additional insured.

B. With respect to the insurance afforded to these
additional insureds, the following additional
exclusions apply:

This insurance does not apply to "bodily injury" or
"property damage" occurring after:

1. All work, including materials, parts or
equipment furnished in connection with such
work, on the project (other than service,
maintenance or repairs) to be performed by or
on behalf of the additional insured(s) at the
location of the covered operations has been
completed; or

2. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or organization
other than another contractor or subcontractor
engaged in performing operations for a
principal as a part of the same project.

CG 20 10 12 19

Attachment Code: D573181 Certificate ID: 19791623
C. With respect to the insurance afforded to these 2. Available under the applicable Limits of additional insureds, the following is added to Insurance; Section III — Limits Of Insurance: whichever is less.

If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:

1. Required by the contract or agreement; or
CG 20 10 12 19
This endorsement shall not increase the applicable
Limits of Insurance.

Attachment Code: D579070 Certificate ID: 19791623
POLICY NUMBER: GLO 9730569
Other Insurance Amendment - Primary and Non -Contributory THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the:

Commercial General Liability Coverage Part

1. The following paragraph is added to the Other Insurance Condition of Section IV — Commercial General Liability Conditions:

This insurance is primary insurance to and will not seek contribution from any other insurance available to an additional insured under this policy provided that:
a. The additional insured is a Named Insured under such other insurance; and b. You are required by a written contract or written agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured.

2. The following paragraph is added to Paragraph 4.b. of the Other Insurance Condition of Section IV — Commercial General Liability Conditions:

This insurance is excess over:

Any of the other insurance, whether primary, excess, contingent or on any other basis, available to an additional insured, in which the additional insured on our policy is also covered as an additional insured on another policy providing coverage for the same "occurrence", offense, claim or "suit". This provision does not apply to any policy in which the additional insured is a Named Insured on such other policy and where our policy is required by written contract or written agreement to provide coverage to the additional insured on a primary and non-contributory basis.

All other terms and conditions of this policy remain unchanged.

U -GL -1327-B CW (04/13)

K-UT-2023-018_Carollo Engineers
Final Audit Report
2023-09-18
Created: 2023-09-11
By: Michelle Ruiz ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAmSXSTyX0DN-j3yUgnmpWwcOjRSt3m8ei "K-UT-2023-018_Carollo Engineers" History
t Document created by Michelle Ruiz ([email protected]) 2023-09-11 - 5:47:20 PM GMT
ET, Document emailed to Shad Springer ([email protected]) for signature 2023-09-11 - 5:52:02 PM GMT
t Email viewed by Shad Springer ([email protected]) 2023-09-11 - 8:48:31 PM GMT
Ca Document e -signed by Shad Springer ([email protected]) Signature Date: 2023-09-11 - 8:49:22 PM GMT - Time Source: server L7 Document emailed to Thomas Watson ([email protected]) for signature 2023-09-11 - 8:49:25 PM GMT
t Email viewed by Thomas Watson ([email protected]) 2023-09-11 - 8:59:49 PM GMT
Da Document e -signed by Thomas Watson ([email protected]) Signature Date: 2023-09-11 - 9:00:09 PM GMT - Time Source: server ET* Document emailed to Mellissa Guerrero ([email protected]) for signature 2023-09-11 - 9:00:11 PM GMT
i`j Email viewed by Mellissa Guerrero ([email protected]) 2023-09-14 - 2:34:35 PM GMT
Ca Document e -signed by Mellissa Guerrero ([email protected]) Signature Date: 2023-09-14 - 2:35:49 PM GMT - Time Source: server ET* Document emailed to AV ([email protected]) for signature 2023-09-14 - 2:35:51 PM GMT
Powered by
Adobe
Acrobat Sign

:tea Document e -signed by AV ([email protected]) Signature Date: 2023-09-18 - 4:25:34 PM GMT - Time Source: server Agreement completed.
2023-09-18 - 4:25:34 PM GMT
Powered by
Adobe
Acrobat Sign

AMENDMENT NO. 1

AGREEMENT FOR PROFESSIONAL SERVICES

WASTEWATER TREATMENT PLANT PROGRAM MANAGEMENT SERVICES
This Amendment No. 1 to Agreement for Professional Services is made and entered into as of October 30, 2023, by and between Carollo Engineers, Inc., a Delaware corporation ("Consultant"), and the City of Santa Maria, a California Municipal Corporation and charter city ("City"), in Santa Maria, California, based on the following recitals:

WHEREAS, on June 30, 2023, the City and the Consultant entered into an Agreement for Professional Services concerning Wastewater Treatment Plant Program Management Services (the "Project") (the "Agreement"); and
WHEREAS, the City now requires additional urgent services related to the existing percolation pond capacity, of which such services are also of a professional, technical, and temporary nature; and
WHEREAS, the City continues to not have available employees to perform the specialized services for the Project; and
WHEREAS, the City has requested the Consultant continue to perform services for the Project; and
WHEREAS, the Consultant remains registered or licensed in California to perform professional and technical services for the Project; and WHEREAS, the Consultant remains qualified, willing, and able to perform the work required by the City to complete the Project, as an amendment to the Agreement referenced above.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. Amendments.

Exhibit "A-1" Services to be Provided. Exhibit "A-1"is hereby attached and incorporated.

Exhibit "C-1" Payment. Exhibit "C-1" is hereby attached and incorporated.

3. Other terms and conditions remain the same. All other terms and conditions of the original Agreement dated June 30, 2023, as modified by this Amendment No. 1 dated October 30, 2023, remain the same.

CONTINUED ON NEXT PAGE
Atty Rev. 2019 Page 1 of 5
ATTACHMENT "A-2"

IN WITNESS WHEREOF, this Amendment No. 1 is executed by the parties on the date first written above.
"Contractor"
CAROLLO ENGINEERS, INC.
a Delaware corporation, authorized to do
business in the State of California
Gmhakg Drib j
By:Graham Juby (Nov 7, 202315.34 PST)

GRAHAM JUBY
Vice President
Attire- F, PrbakeG
By_-'c,.ne E. Prudhe('Nov 7.202315:54 PST)

ANNE PRUDHEL
Senior Vice President
"City"

CITY OF SANTA MARIA
a political subdivision
of the State of California
SHAD S. SPRINGER, P.E., MPA
Director of Utilities
ATTEST
By:

ALEXANDRA VALADEZ
Assistant City Clerk

APPROVED AS TO FORM
McUi:Trc Green eYo
ilissa Guerrero (Nov 17, 202313:54 P
Risk Manager
rock (Nov 8, 2023 12:39 PST;
City Attorney
Atty Rev. 2019 Page 2 of 5

EXHIBIT "A-1"

SERVICES TO BE PROVIDED

PROJECT UNDERSTANDING
On June 30, 2023, the City issued Contractor (referred to in this Exhibit "A-1" as Carollo) a Notice to Proceed with the Project (the Interim Scope of Work for the WWTP Program Management Services). Subsequently the City and Carollo executed an Agreement for Professional Services (the Agreement).

The Interim Scope of Work was focused on addressing a number of urgent and short-term items related to the Notice of Applicability (NOA) issued by the Central Coast Water Board on June 16, 2023. Of the three tasks included in the Interim Scope of Work, Task A— Project Management and Administration is ongoing. Much of the Task B — Immediate Action Assistance has been completed, and a number of the sub -tasks of Task C — Short Term Assistance are underway.

One of the Task C sub -tasks (item e) focuses on beginning work on the percolation pond analysis, which included reviewing existing geotechnical and subsurface data, historical performance, previous studies, and interviews with WWTP staff. The bulk of the remaining percolation pond work was to be completed as part of the larger (long term) Phase 1 scope of work which is under development.

Percolation Pond Focus and Objectives
Daily influent flow to the WWTP has increased over time and is now around 8.0 mgd. This is a threshold number because the NOA stipulates that the WWTP capacity is linked to the percolation pond capacity, which was stated in the NOA as 8.0 mgd. Accordingly, some of the planned percolation pond work, including some field work, has been brought forward to address the percolation pond capacity issue.

Short Term Goal — the short-term goal of the percolation pond evaluation is to establish a defensible percolation pond capacity based on the existing pond area. This will allow the City to approach the Water Board and request a modification of the "plant capacity" value. To achieve this stilling wells and level transducers will be installed in some wells to measure the percolation rate. The additional scope for this work is detailed below.

Long Term Goal — the long-term goal for the percolation pond evaluation and for the percolation ponds themselves is to develop an approach to sustain the percolation capacity. Tons of fine organic solids are deposited in the ponds each year due to the quality of the secondary effluent.

These solids need to be removed from the ponds periodically to sustain performance.

Understanding the soil makeup in the ponds will also help to decide on the best long term operational strategy for ponds on either the west side or east side of Black Road. Most of the work related to the long-term pond performance will be addressed as part of the larger Phase 1 project scope.

Additional Percolation Pond Scope of Work for Short Term Completion Carollo and sub -consultants will oversee a flow monitoring effort to characterize percolation rates in the existing ponds. Some field activities will be needed now, but most will occur upon execution of the Phase 1 agreement and Scope of Work. The following is to be completed to address the short-term goal, as part of the interim timeframe.

Atty Rev. 2019 Page 3 of 5

Flow Monitoring Efforts (Hydrogeological):

1. Develop a percolation pond evaluation plan in consultation with the City to decide how to go about monitoring the percolation rates in each pond and the objectives of the study.

2. Set up three stilling wells and deploy three pressure transducers with telemetry capabilities to capture pond levels. The locations of the stilling wells will be agreed during a site visit and will depend on which ponds are "dry". Also, an evaporation pan system and rain gauge will be installed to quantify evaporation and rainfall.

3. Record water inflow into the percolation ponds over a span of approximately two months.

Data acquisition will happen through on -site visits and remote telemetry -enabled data loggers.

4. Compare transducer data from the pond stilling wells with the City's historical daily pond level data to correlate current percolation rates in all ponds.

5. Develop a water balance to demonstrate percolation pond capacity. Understanding the influent flow rate, the percolation pond area in the active ponds (leveraging the City's drone images if possible), the average evaporation rate, rainfall amounts, and the change in pond level, will allow a water balance to be developed which will yield the pond capacity.

6. Utilize monitoring processes to understand how much percolation pond performance has changed since prior work was completed. This will help with understanding the required frequency for maintenance activities.

7. Prepare a technical memorandum documenting the percolation pond performance and capacity. The contents of this document will be used to approach the Regional Water Board to request an adjustment to the pond, and therefore the WWTP, capacity.

Geotechnical Investigations:

1. Collect previous historical geotechnical data and reports, maintenance records and other data from the City. Extract all boring/exploration maps and laboratory data from the available documents.

2. Submit a survey to plant staff regarding pond performance and past efforts regarding maintenance in order to understand the activities performed and the frequency of the maintenance efforts.

3. Prepare a set of summary maps showing locations of previous subsurface explorations.

Also, develop a map to show recommended exploration locations for borings, CPT soundings and test pits for the field work to be conducted as part of the Phase 1 scope.

Recommended explorations will depend on review of data, information provided by plant staff on pond performance, and the need to fill gaps in the data for pond performance assessment.

4. Prepare a technical memorandum summarizing the historical data together with a work plan and exploration map for the field investigations to be completed as part of the Phase 1 scope of work.

Deliverables: Draft and final "Percolation Pond Performance Evaluation" technical memorandum in electronic PDF format. Draft and final "Percolation Pond Geotechnical Work Plan and Exploration Plan" technical memorandum in electronic PDF format.

The above scope of work will not recommend pond capacity improvements for the long term, although much of the information will be used for such recommendations. The recommendations for pond capacity improvements for the long-term will be provided later as part of the long term Phase 1 scope of work in conjunction with estimates for the future plant capacity.

Atty Rev. 2019 Page 4 of 5

EXHIBIT "C-1"

PAYMENT
I. PROGRESS AUTHORIZATION
Written authorization to proceed from the City authorizes the Contractor to generate additional costs of SIXTY-FIVE THOUSAND DOLLARS AND ZERO CENTS ($65,000.00) IN FEES for above listed tasks under this Amendment No. 1.

Item
Authorized Costs
Agreement dated June 30, 2023:

Amendment No. 1 dated October 30, 2023
$75,000.00
$65,000.00
NEW TOTAL PROJECT NOT -TO -EXCEED COSTS:

ONE HUNDRED FORTY THOUSAND DOLLARS AND ZERO CENTS
($140,000.00)
The City reserves the right to withhold any amount if unsatisfied with the service the Contractor provides or if the Contractor exceeds this written authorization for the above not -to -exceed costs.

11. INVOICE PROCEDURE
The Contractor's bills shall be substantiated by appropriate documentation, and include an itemized listing of personnel, sub -Contractors, and other direct costs incurred.

Atty Rev. 2019 Page 5 of 5

Contract from City of Santa Maria for E -Signing
(Amendment No. 1 to Interim Scope of Work for
WWTP Program Mgt Svcs)
Final Audit Report
2023-11-07
Created: 2023-10-30
By: Michelle Ruiz ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAwkIN5GFZCCPr2gcRnzEXBJuXegFe4r64 "Contract from City of Santa Maria for E -Signing (Amendment N o. 1 to Interim Scope of Work for WWTP Program Mgt Svcs)" Hi story
it Document created by Michelle Ruiz ([email protected]) 2023-10-30 - 11:25:16 PM GMT
E's Document emailed to Graham Juby ([email protected]) for signature 2023-10-30 - 11:25:56 PM GMT
s`1 Email viewed by Graham Juby ([email protected])
2023-10-31 - 0:40:59 AM GMT
E. New document URL requested by Graham Juby ([email protected]) 2023-11-07 - 11:53:26 PM GMT
3 Email viewed by Graham Juby ([email protected])
2023-11-07 - 11:53:46 PM GMT
0 Document e -signed by Graham Juby ([email protected]) Signature Date: 2023-11-07 - 11:54:09 PM GMT - Time Source: server Document emailed to Anne Prudhel ([email protected]) for signature 2023-11-07 - 11:54:10 PM GMT
t Email viewed by Anne Prudhel ([email protected])
2023-11-07 - 11:54:22 PM GMT
Powered by
Adobe
Acrobat Sign

— Signer Anne Prudhel ([email protected]) entered name at signing as Anne E. Prudhel 2023-11-07 - 11:54:43 PM GMT
(?o. Document e -signed by Anne E. Prudhel ([email protected]) Signature Date: 2023-11-07 - 11:54:45 PM GMT - Time Source: server 0 Agreement completed.
2023-11-07 - 11:54:45 PM GMT
Powered by
Adobe
Acrobat Sign

AGREEMENT FOR PROFESSIONAL SERVICES

WASTEWATER TREATMENT PLANT PROGRAM MANAGEMENT SERVICES
This Agreement is made on December 5, 2023 by and between Carollo Engineers, Inc., a Delaware corporation ("Contractor"), and the City of Santa Maria, a California Municipal Corporation and charter city ("City"), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined that Wastewater Treatment Plant Program Management Services involves performance of technical and professional services of a temporary nature (the "Project"); and
WHEREAS, City does not have available employees to perform the services for the Project; and
WHEREAS, on March 17, 2023, the City of Santa Maria Utilities Department released a Request for Qualifications for Wastewater Treatment Plant Program Management Services ("RFQ"); and
WHEREAS, the Contractor submitted a statement of qualifications that was responsive to the City's RFQ prior to the submittal deadline; and
WHEREAS, following a comprehensive evaluation of that submittal in consideration of the RFQ rating criteria, an interview with the Contractor on June 22, 2023, and subsequent discussions between the Contractor and members of the City's selection committee, the Contractor was selected to perform the services for the Project; and WHEREAS, the City determined Contractor's rates were fair and reasonable compared to other firms performing similar services; and
WHEREAS, in consideration of the timeliness of the work to be accomplished by July 14, 2023 related to the Notice of Applicability ("NOA") dated June 16, 2023 issued to the City of Santa Maria by the Central Coast Water Board ("Water Board"), as authorized by City Purchasing Guidelines, the City and the Contractor entered into a June 30, 2023 agreement for immediate, critical services to be performed by the Contractor related to the Project (hereinafter referred as the "Interim Scope"); and
WHEREAS, on October 30, 2023, the Interim Scope was amended to include additional immediate tasks for completion by the Contractor and to increase the Project budget accordingly ("Amendment No. 1 to Interim Scope"); and
WHEREAS, while performing the services required under the Interim Scope, the City and the Contractor negotiated the terms and conditions for the comprehensive scope of work for the Project to be performed by the Contractor to cover the first phase of the Project (approximately the first eighteen months), as memorialized in this "Agreement for Professional Services - Wastewater Treatment Plant Program Management Services dated December 5, 2023"; and WHEREAS, the Contractor is registered or licensed in California to perform the services for the Project.

Atty. rev. 2023; Risk rev. 2023 Page 1 of 34
ATTACHMENT "B"

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01 Term and Termination. The term of this Agreement begins on the first date written above and ends at 11:59 p.m. on June 30, 2025. This Agreement may be extended by mutual consent of the parties. This Agreement may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state, or federal law.

Termination is effective fourteen (14) days after deposit of notice as specified in this Agreement.

2.02 Services to be Performed. Contractor shall determine the method, details, and means of providing services for the Project. More specifically, Contractor agrees to perform the specific services listed in Exhibit "A."

2.03 City's Duties. City's duties under this Agreement are to cooperate with the Contractor in the performance of the Agreement and timely pay invoices as outlined in Exhibit "C". In addition, City shall furnish Contractor available studies, reports and other data pertinent to Contractor's services; obtain or authorize Contractor to obtain or provide additional reports and data as required; furnish to Contractor services of others required for the performance of Contractor's services hereunder, and Contractor shall be entitled to use and reasonably rely upon all such information and services provided by City or others in performing Contractor's services under this Agreement. Additionally, the City shall arrange for access to and make all provisions for the Contractor to enter upon public and private property as required for the Contractor to perform services hereunder.

2.04 Payment. Payment terms under this Agreement are listed in Exhibit "B". The City agrees to timely review invoices for approval and promptly submit for payment processing.

2.05 Insurance. Contractor shall provide insurance as listed in Exhibit "C."

2.06 Exhibits. Exhibits "A", "B", and "C" are attached and incorporated.

3. Contractor's Obligations.

3.01 Minimum Amount of Service. Contractor shall devote sufficient time to perform services under this Agreement efficiently and effectively. Contractor may represent, perform services for and be employed by additional individuals or entities, in Contractor's sole discretion, as long as the performance of these extracontractual services does not interfere with or present a conflict with the City's business.

3.02 Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.

3.03 Status. Contractor (including its employees) is an independent Contractor.

No employer/employee relationship exists between Contractor and City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of City. City is not required to make any deductions or withholdings from the compensation payable to Contractor under this Agreement. Contractor (as a business entity, including its employees) is a "design professional" as defined by California Civil Code section 2782.8(c)(3).

3.04 Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys' fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of Atty. rev. 2023; Risk rev. 2023 Page 2 of 34

Contractor including its employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this section are not limited by the provisions of the section relating to insurance. In no event shall the cost to defend charges Contractor exceed Contractor's proportionate percentage of fault.

3.05 Warranties and Damages. Contractor shall not be responsible for warranties, guarantees, fitness for a particular purpose, breach of fiduciary duty, loss of anticipated profits or for economic, incidental, liquidated, or consequential damages to City any third party. Additionally, Contractor shall not be responsible for acts and decisions of third parties, including governmental agencies, other than Contractor's subconsultants, that impact project completion and/or success.

3.06 Standard of Care. Contractor shall complete the services required hereunder in accordance with the prevailing standard of care by exercising the skill and ability ordinarily required of consultants performing the same or similar services, under the same or similar circumstances, in the State of California.

3.07 Estimates and Projections. In providing opinions of cost, financial analyses, economic feasibility projections, schedules, and quantity and/or quality estimates for potential projects, Contractor has no control over cost or price of labor and material; unknown or latent conditions of existing equipment or structures that may affect operation and maintenance costs; competitive bidding procedures and market conditions; time or quality of performance of third parties; quality, type, management, or direction of operating personnel; the incoming water quality and/or quantity; the way City's plant(s) and/or associated processes are operated and/or maintained; and other economic and operational factors that may materially affect the ultimate project elements, including, but not limited to, cost or schedule. Therefore, Contractor makes no warranty that City's actual project costs, financial aspects, economic feasibility, schedules, and/or quantities or quality realized will not vary from Contractor's opinions, analyses, projections, or estimates.

3.08 Delays. Contractor is not responsible for damage or delay in performance caused by events beyond the reasonable control of Contractor. In the event Contractor's services are suspended, delayed, or interrupted for the convenience of City or delays occur beyond the reasonable control of Contractor, an equitable adjustment in Contractor's time of performance and cost of Contractor's personnel and subcontractors may be made.

4. Miscellaneous

4.01 Notices. All communication relating to the day-to-day activities of this Agreement shall be exchanged between a designated representative of City and a representative of Contractor, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

City:

Attn: Shad Springer
City of Santa Maria
Utilities Department
2065 East Main Street
Santa Maria, CA 93454
Contractor:

Attn: Graham Juby, Vice President
Carollo Engineers, Inc.
3150 Bristol Street
Costa Mesa, CA 92620
Atty. rev. 2023; Risk rev. 2023

Page 3 of 34 ends

If the designated Representative or address of either party changes during the term of this Agreement, a written notice shall be given to the other party prior to the effective date of change.

Any written notices required under this Agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02 Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this Agreement.

4.03 Integration. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties.

4.04 Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California.

4.05 Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of California.

4.06 Warranty of authority. Each person signing this Agreement on behalf of a party warrants that he or she has authority to do so.

4.07 No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

4.08 Severability. The provisions of this Agreement are severable. If any part of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09 Submittals. In addition to any other submittals required by this Agreement, Contractor shall submit copies of its current business license and current certificate of workers compensation coverage to the City before beginning work on this Project.

4.10 Prevailing Wage. If applicable, Contractor and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein.

4.11 Third Parties. The services to be performed by Contractor are intended solely for the benefit of City. No person or entity not a signatory to this Agreement shall be entitled to rely on Contractor's performance of its services hereunder, and no right to assert a claim against Contractor by assignment of indemnity rights or otherwise shall accrue to a third party as a result of this Agreement or the performance of Contractor's services hereunder.

CONTINUED ON NEXT PAGE
Atty. rev. 2023; Risk rev. 2023 Page 4 of 34

IN WITNESS WHEREOF, this Agreement is executed by the parties on the date first written above.
"Contractor"
CAROLLO ENGINEERS, INC.
a Delaware corporation, authorized to do
business in the State of California
Gi-ahani X701
By:Grahamiuby :Nov 8, ?OT 17: 15 PST;

GRAHAM JUBY
Vice President
By:

ANNE PRUDHEL
Senior Vice President
"City"

CITY OF SANTA MARIA
a political subdivision
of the State of California
By:

SHAD S. SPRINGER, P.E., MPA
Director of Utilities
ATTEST
By:

SARAH LANSBURGH
Chief Deputy City Clerk

APPROVED AS TO FORM
Risk Manager
City Attorney
Atty. rev. 2023; Risk rev. 2023

Page 5 of 34 ends

EXHIBIT "A"

SERVICES TO BE PROVIDED

PROJECT UNDERSTANDING
The City is embarking on a large, roughly ten-year program to upgrade its existing wastewater treatment plant ("WWTP" or "plant") to meet new General Order requirements. The City owns and operates the existing WWTP which has a rated capacity of around 13.5 million gallons per day ("mgd") and currently treats approximately 7.5 mgd from a population of about 110,000, including domestic, commercial, and industrial users. The plant also receives hauled septage from a wide area, as this is the only local treatment plant that accepts septage. The plant is located on a 211 -acre parcel at 601 South Black Road, and all treated effluent is disposed of via seventeen percolation ponds covering about one hundred twenty-three acres.

THIS EXHIBIT REPRESENTS THE PHASE 1 SCOPE OF WORK THAT WILL COVER

APPROXIMATELY THE FIRST EIGHTEEN MONTHS OF THE PROGRAM MANAGEMENT

SERVICES FOCUSED ON REGULATORY SUPPORT, CURRENT WWTP PERFORMANCE,

ENVIRONMENTAL, THE WASTEWATER MASTER PLAN, PERCOLATION POND CAPACITY EVALUATION, FUNDING, AND STAKEHOLDER OUTREACH.

Following this, the City and the Contractor (hereinafter referred to as "Carollo" within this Exhibit "A") will negotiate the Phase 2 services that will include the program management and delivery, design, construction, start-up and commissioning of the new facilities required to achieve compliance with the new General Order.

Specific tasks and sub -tasks are presented in more detail below.

Atty. rev. 2023; Risk rev. 2023 Page 6 of 34

SCOPE OF WORK
Task 1 — Project Management and Administration
Provide project management throughout the course of the project/program to provide fulfillment of the project scope of work within budget and schedule. This includes the management responsibilities associated with schedule review, budget control, invoice preparation and coordination with the City's project manager and staff, Carollo's project team, subconsultants, and subcontractors.

As part of this project management task, Carollo will complete the following:
• Project Schedule. Maintain on a monthly basis an updated project schedule outlining all tasks, durations, milestone dates, and the City's review periods. • Reviews. Provide quality assurance and quality control ("QA/QC") reviews throughout the course of the project. Provide reviews of all work products, incorporate City's comments into all deliverables while adhering to industry practices and standards. • Monthly Project Progress Meetings. Throughout the course of the project, attend project progress meetings relative to the ongoing task activities. Project progress meetings will take place monthly for the duration of the project. It is anticipated that these meetings will be in -person and held at the City's administration office or at the WWTP. Prepare meeting minutes for review by City staff and send them to the City by email within five working days.
• Kickoff Meeting. Attend an in -person kickoff meeting with the City to discuss the project goals and objectives, communication preferences, an overview of the scope of work and initiate data collection.
• Biweekly Meetings. In addition, bi-weekly telephone calls/Teams/Zoom meetings will be held with the City's project manager to discuss action items and other project related activities to keep the project on track.
• Project Workshops. Prepare for and attend up to ten project workshops. The purpose of a workshop will be to discuss one or more specific items in detail to assist the City and/or other project stakeholders with specific project decisions. Workshops will take the place of a Monthly Project Progress Meeting, as appropriate.

Deliverables: Monthly updated project schedule, meeting agendas, meeting minutes, monthly invoices, and presentation materials, all submitted in electronic (PDF) format.

Task 2 — Data Collection and Review
The purpose of this task is to obtain relevant information as is available from the City. • Prior to and following the kickoff meeting with the City, prepare a potential list of data that will be of interest for this project (the "Data Request List). • Maintain the Data Request List and add to the list as needed throughout the duration of the project.
• Review the City's existing data, reports, record drawings, and studies regarding the sewer collection system, the WWTP, and other facilities relevant to the project.

Deliverables: Initial Data Request List, and regular updates to the list as needed, all in electronic (PDF) format.

Atty. rev. 2023; Risk rev. 2023 Page 7 of 34

Task 3 — Regulatory Support
The purpose of this task is to assist the City with regulatory support based on the content of the NOA received from the Water Board dated June 16, 2023, the City's response, and subsequent dealings with the Water Board, as needed. Carollo will hire Larry Walker and Associates ("LWA") to provide specialist regulatory support for all sub -tasks.

Task 3.1 — Follow-up Meetings and Discussions with Water Board regarding NOA This task is likely to include a follow-up meetings and discussions with the Water Board to discuss the comments provided by the City on the NOA, as well as preparation of response letters and additional information needed to support the City's position with respect to the interim effluent limits, the disposal pond capacity, the proposed monitoring plan, and other issues.

Task 3.2 — Development of the Time Schedule Compliance Plan The Time Schedule Compliance Plan must be submitted to the Water Board by June 16, 2024.

In the Plan, the City must identify if it will be using Option 1 (complying with effluent limits) or Option 2 (to implement a groundwater monitoring program to show compliance with individual constituents in the groundwater). Gather the required information to begin the analysis and complete a comparison between Option 1 and Option 2 to clearly identify the preferred direction for the City. Prepare a draft of the compliance plan by the end of January 2024 to allow adequate time for internal review. Report requirements are set out in the NOA. Meet with the City as needed to discuss comments on the draft compliance plan. Prepare an updated final version of the compliance plan for the City to submit to the Water Board by June 16, 2024.

Deliverables: Draft and Final Time Schedule Compliance Plan in electronic format.

Task 3.3 — Development of other Technical Reports for the Water Board The NOA requires preparation of several technical reports. Carollo will provide as needed assistance to the City to prepare these reports. The reports that will be required are shown in the table below:

Report
Water Board
Due Date
Comments
Operations & Maintenance Manual
June 16, 2024
City has an existing manual
Climate Change Adaption Plan
June 16, 2025
Time Schedule Compliance Plan
June 16, 2024
See Task 3.2
Groundwater Monitoring Plan
October 16, 2024
If Option 2 selected
For the Operations and Maintenance ("O&M") Manual, Carollo will review the existing O&M Manual and conduct a gap analysis initially to identify the areas of the O&M that will require additional input.

Thereafter, the existing O&M Manual will be updated and modernized to reflect the current treatment plant operation to meet the requirements of the General Order. The updated O&M Manual will be submitted as a PDF, but it will not be an interactive electronic O&M Manual.

Deliverables: Draft and Final versions of the updated O&M Manual, Groundwater Monitoring Plan, and Climate Change Adaption Plan, all in electronic format.

Atty. rev. 2023; Risk rev. 2023

Page 8 of 34 ends

Task 3.4 — Assist City with setting up GeoTracker
Technical submissions to the Water Board are required to be submitted via GeoTracker. Carollo will help the City set up the GeoTracker site for uploading reports to the Water Board.

Task 4 — WWTP Performance Assistance
The performance of the existing trickling filters has declined over the first half of 2023 to the point that the City may not be able to meet a CBOD of 60 mg/L in the treated effluent. Carollo will provide support to assist with identifying an approach or approaches to improving performance.

Sub -tasks include:
• Evaluate performance data and provide on -going support to the City during the investigation of options to improve the current trickling filter performance. • Provide plant operational support with an on -site person to work with the Chief Plant Operator for approximately one week to see if trickling filter performance can be improved.
• Develop a testing plan and conduct on -site jar testing for CBOD/BOD , removal in the primary clarifiers, evaluate the performance, and prepare Technical Memorandum No. 1 summarizing the results and recommendations.
• Review the historical septage hauler information. Prepare Technical Memorandum No. 2 summarizing the findings and recommendations with respect to the ability to segregate some septage flow and treat it directly in the anaerobic digesters.

Task 5 — CEQA/Environmental Process
The first step in the California Environmental Quality Act ("CEQA") process is to determine whether the project is exempt from CEQA or what level of CEQA response is required. This scope of work includes preparation of review documentation pursuant to CEQA, as well as the necessary environmental documentation to satisfy the requirements of the Clean Water State Revolving Fund (CWSRF) Program Operating Agreement between the United States Environmental Protection Agency (EPA) and the State Water Resources Control Board (SWRCB); called CEQA plus. The scope assumes that a Mitigated Negative Declaration ("MND") supported by the Initial Study will be the appropriate level of CEQA documentation. It is noted that the City did conduct CEQA for a possible percolation pond expansion project on the east side of Black Road. This documentation will be provided by the City and be used to provide relevant background environmental information for the team. If potentially significant and unavoidable impacts are identified for selected topics, a Focused EIR would be required. It is anticipated that the Initial Study would be used to identify those topics that do not require additional analysis. If a Focused EIR is required, a scope and budget adjustment would be required.

Task 5.1 — Project Initiation
Task 5.1.1 Project Start -Up
Carollo will contract with LSA to provide the required CEQA / environmental services. LSA and Carollo will attend a remote kick-off meeting with City staff via Teams. The scope of work for Task 5 will be discussed and confirmed. As part of this task all pertinent historical data provided by the City will be reviewed by the Carollo team as well as any other relevant technical studies and documents. The Carollo team will provide maps and conceptual drawings as well as any technical studies prepared for the proposed project.

Atty. rev. 2023; Risk rev. 2023 Page 9 of 34

Task 5.1.2 Site Review
The following technical research will be undertaken to provide information for the planning process:

Biological Resources. A thorough biological resources assessment required for project review under CEQA will be conducted. A key objective of the evaluation will be to identify any special status plant, wildlife species, or sensitive habitats that the project may affect. The project site is flat and currently developed, consisting of an active wastewater treatment plant with several treatment and settling ponds. The site is bounded by mainly agricultural land uses; a compost facility is located directly to the west. Sensitive biological resources potentially occurring in the project site include California red -legged frog (Rana draytonii), western spadefoot (Spea hammondii), California tiger salamander (Ambystoma californiense), Swainson's hawk (Buteo swainsoni), western burrowing owl (Athene cunicularia), bats and other nesting birds, special - status plants, and jurisdictional waters. As part of this task to prepare the assessment the following subtasks will be completed:
■ Literature Review and Records Search. Prior to a site visit, execute and evaluate a biological resource records search of the most current versions of the California Department of Fish and Wildlife ("CDFW") California Natural Diversity Database (CNDDB), the California Native Plant Society (CNPS) Electronic Inventory of Rare and Endangered Vascular Plants of California, and the United States Fish and Wildlife Service (USFWS) Information for Planning and Consultation (iPaC) database. These databases will be reviewed for known occurrences of special -status biological resources and mapped jurisdictional aquatic resources. Also review previous project work in the area for applicable biological resources information.
■ Field Work. Following the literature review, an experienced biologist familiar with the habitats and special -status natural resources of the region will conduct a general survey of the biological resources in areas that may be directly or indirectly impacted by proposed project activities, particularly to document the occurrence of any biological resources (i.e., species or habitats) of interest or concern and to determine the potential for the presence of any such resources that may not be detectable at the time of the site survey. The survey will be conducted on foot, walking the perimeter and throughout the project site.

All occurrences of rare plant and/or wildlife species within the study area shall be mapped, along with all vegetation communities and other land cover types within the study area.

Also assess the trees as potential habitat for nesting birds or roosting bats and document any fossorial burrow complexes potentially suitable for western burrowing owl or California tiger salamander. It is anticipated that the field survey will take 2 days to complete.

As part of the field work, any potential jurisdictional waters of the United States as well as streambeds, riparian vegetation, or wetlands subject to State jurisdiction, and/or features considered sensitive by local jurisdictions that are identified within the project limits would also be assessed in the field. Include information gathered from this field work, including a map of the study area, in the technical memorandum described below. A formal, stand- alone jurisdictional delineation report is not included in this scope. If a formal jurisdictional delineation report is requested, a revised scope and budget will be prepared for such documentation.

This scope of work does not include a formal, stand-alone aquatic resources delineation report.

Atty. rev. 2023; Risk rev. 2023 Page 10 of 34

Biological Resources Technical Memorandum. The results of the field surveys will be documented in a Biological Resources Technical Memorandum, to account for biological resources in the project area and to evaluate potential project effects to biological resources.

The memorandum will include the following:
• A description of the survey methodology and general regulatory background/ definitions; • A discussion of the of soils, plant communities, and other land cover types; • Identification and discussion of areas that may potentially be considered jurisdictional wetlands, waters of the United States, waters of the State, or streambeds, as defined by the United States Army Corps of Engineers (USACE), California State Water Resources Control Board, and the CDFW;
• A description of observed or otherwise detected special -status species; • An assessment of potential habitat value for special -status species; • A discussion of direct, indirect, and cumulative impacts of the proposed project to special - status biological resources, including federally listed species; • A list of plant and wildlife species observed during the survey; • Representative photographs of the project site and graphics showing the project location and vegetation communities (additional graphics, as needed, will show locations of special -status species or sensitive natural communities, jurisdictional waters, potential special -status species habitat, and areas of designated critical habitat on or directly adjacent to the project site); and
• A Federal Endangered Species Act (FESA) / California Endangered Species Act (CESA) determination.

Project -related impacts to biological resources will be evaluated in accordance with the 2023 State CEQA Guidelines, CEQA-Plus requirements, and other applicable federal, State, and local regulations/policies. As applicable, measures will be identified for avoidance, minimization, and/or mitigation of project impacts.

Cultural Resources. Per Section 106 of the NHPA (Section 106), a historic property is a prehistoric or historic district, site, building, structure, or object included in or eligible for inclusion in the National Register of Historic Places (National Register). As part of the CEQA-Plus process, a CEQA-level cultural resources analysis will be conducted concurrently with a Section 106 cultural resources analysis to identify any CEQA historical resources or Section 106 historic properties within the project site. A preliminary review of aerial photographs and topographic quadrangle maps, the project site appears to have been used for sewage treatment since 1938 and extant built environment elements within the current facility appear to date from the 1960s and early 1970s. Accordingly, in order to determine whether the WWTP qualifies as an "historical resource" under Section 5024.1 of the California Public Resources Code, it will be necessary to evaluate it for its potential for inclusion in the National Register and the California Register of Historical Resources (California Register).

To efficiently address both the CEQA and Section 106 requirements, a Section 106 Historic Properties Identification Report (HPIR) will be prepared per the SWRCB guidelines dated July 13, 2020. The HPIR findings will be used as a basis for the CEQA analysis and for establishing the cultural resources baseline conditions in the Initial Study ("IS") / MND. The following subtasks will be completed as part of the cultural resources analysis:
• Background Research. Coordinate with staff of the Central Coast Information Center (CCIC) to conduct a records search of the project site and a 0.25 -mile radius. Conduct Atty. rev. 2023; Risk rev. 2023 Page 11 of 34

property -specific research at information repositories, government offices, and local archives to investigate the background of the WWTP and identify its historic context. In addition to online sources, research at: the Santa Maria Public Library, the Santa Maria Valley Historical Society Museum, and a review of records, maps, and plans on file at the City's Utilities Department. The archival research at these locations will examine local histories, maps, aerial photographs and images, city directories, local newspaper clipping files, and government records (e.g., County Surveyor maps, deeds of trust, sales and property transfer documents, grantee/grantor entries, and surveys). • Interested Party Consultation. Reach out to local historical societies and organizations via email to request any information or concerns they may have regarding the project site.

Anticipate reaching out to the following organizations: the Santa Barbara County Historical Society, the Santa Maria Valley Historical Society Museum, and the City of Santa Maria Utilities Department for plans, permits, and other evidence relevant to inform the historical context of the facility and its development. Contact the Native American Heritage Commission (NAHC) for a search of the Sacred Lands File and a Native American contact list. At the City's direction, send tribal notification letters to all parties identified by City (via Certified Mail) and follow up with at least one phone call or email to ensure all tribal groups received the letter and have an opportunity to comment. Compile an administrative record to document the coordination process, which will be attached to the archaeological report along with all tribal correspondence. This scope assumes no more than 15 letters will be sent to tribal groups.
• Field Surveys. An Architectural Historian who meets the Secretary of the Interior's (SOI) Professional Qualification Standards in Architectural History and History (36 CFR Part 61) will conduct a pedestrian field survey to document the form, materials, and construction style(s) of the project site's built environment, as well as to identify any subsequent structural modifications. Also, an Archaeologist who meets the Register of Professional Archaeologist's (RPA) standards (RA or RPA) or an archaeologist directed by the RA/RPA will conduct a pedestrian field survey to examine the project site surface for archaeological resources. This scope assumes negative findings, i.e., that no archaeological or historical resources will be identified on the project site by the pedestrian survey or record search. In the event resources are identified, the City will be informed immediately to develop a scope and budget for additional tasks. For example, cultural resources would be recorded on State of California Department of Parks and Recreation (DPR) Series 523 forms in accordance with the guidelines established by the Office of Historic Preservation (OHP).
• Area of Potential Effects (APE) Map. Using project plans and the results of the records search and field survey, LSA will develop an APE map for the project. • Report. Following the research, interested party consultation, and field review, a Section 106 HPIR will be prepared to document the cultural resources analysis methods and results. The report will include a project description, an APE description (including proposed excavation depths for all project components), project setting, background search results, tribal coordination summary, field survey results and will be submitted to the NWIC in fulfillment of a requirement to access their archives.

Atty. rev. 2023; Risk rev. 2023 Page 12 of 34

■ Draft Section 106 Letter. A draft letter will be prepared for submission to the SWRCB to use in its consultation with the California State Historic Preservation Officer (SHPO).

Deliverables: Draft and Final versions of the Section 106 HPIR Report, and the Section 106 Letter to the SWRCB. Each document will be submitted to the City for review and comment.

After the City's review a meeting will be held with the City to receive their comments. Final versions of the reports will be prepared and submitted, all in electronic (PDF) format.

Task 5.1.3 Project Description
Prepare a detailed project description suitable for use in the Initial Study / MND. The project description will describe details of the proposed work, proposed construction activities, and project phasing. Include relevant plans or diagrams, as provided by the City and the planning engineers, with the project description. Following review and approval by the City, the project description will be used as the basis for evaluating the project's potential environmental impacts.

Following commencement of the environmental analysis in the Initial Study, substantial changes to the approved project description could result in the need for rework or delays in the schedule as well as the need for a scope and budget adjustment.

Deliverables: Draft and Final Project Description in electronic (PDF) format.

Task 5.2 — Evaluation of Environmental Effects
An Initial Study will be prepared in accordance with CEQA and the CEQA Guidelines and will utilize the most recent Environmental Checklist Form (Appendix G of the CEQA Guidelines).

Each topic in the checklist will be evaluated and responded to. Environmental analysis will be based on available information, and information developed as part of the planning process. The following environmental topics will be evaluated in the Initial Study, consistent with the requirements of CEQA. Each issue topic is shown in alphabetical order, as it appears in the CEQA checklist.
■ Aesthetics
■ Agricultural / Forestry Resources
■ Air Quality
■ Biological Resources
■ Cultural Resources
■ Energy
■ Geology and Soils
■ Greenhouse Gas Emissions
■ Hazards and Hazardous Materials
■ Hydrology and Storm Drainage
Deliverables: See Task 5.3.
■ Land use and Planning
■ Mineral Resources
■ Noise
■ Population and Housing
■ Public Service
■ Recreation
■ Transportation
■ Tribal Cultural Resources
■ Utilities and Service Systems
■ Wildlife
Task 5.3 — CEQA Documentation
An Administrative Draft Initial Study (IS) will be prepared for City review and comment. This scope of work assumes that the IS will indicate that an MND is the appropriate level of environmental documentation. Therefore, this scope also assumes preparation of a Screencheck Draft IS/MND, a Public Review Draft IS/MND, and a Final IS/MND, which will include responses to comments, as necessary. In addition, a Mitigation Monitoring and Reporting Program ("MMRP"), as described below, will be prepared.

Atty. rev. 2023; Risk rev. 2023 Page 13 of 34

Deliverables: One electronic copy in MS Word and one PDF of each draft will be provided to the City for review and comment, with the exception of the Public Review Draft IS/MND.

As described below, up to five hard copies of the Public Review Draft IS/MND will be provided for the City's use/distribution.

Task 5.3.1 Administrative Draft Initial Study
Using the setting and analysis prepared under Task 5.2 above, an Administrative Draft Initial Study will be prepared with the following components, including figures to illustrate the project location and features:
■ Project Description
■ CEQA Appendix G Environmental Checklist Form
■ Mandatory Findings of Significance
■ Contacts and Bibliography
The Administrative Draft Initial Study will be submitted to the City for review and comment.

Following the City's review period, a meeting will be held with City staff to present and explain the findings of the Administrative Draft Initial Study (IS). At this meeting, present a recommendation as to whether to proceed with preparation of a MND or a Focused EIR. As noted above, the following scope assumes that the IS will indicate that an MND is the appropriate level of environmental documentation.

Deliverables: Administrative Draft Initial Study in Word and PDF format.

Task 5.3.2 Screencheck Draft Initial Study / MND
Based on the comments on the Administrative Draft IS/MND, the report will be updated. The Screencheck Draft IS/MND will be provided to City staff to verify that all requested changes have been made and all appendix materials, references, and final graphics are acceptable.

Deliverables: Screencheck Draft Initial Study in Word and PDF format.

Task 5.3.3 Public Review Draft Initial Study / MND
It is anticipated that only minor revisions to the Screencheck Draft will be required in order to prepare the public review IS/MND. As part of this task a Notice of Completion, in accordance with the CEQA Guidelines will be prepared, and coordination with the City will take place to distribute the Draft IS/MND pursuant to CEQA and City review procedures.

LSA will coordinate with the City to be assigned as a submitter (on behalf of the City) to submit the Draft IS/MND to the State Clearinghouse for public review. PDF and Word versions of the IS/MND will be provided to allow the City to post these documents on their website. If requested by the City, up to 5 hard copies of the IS/MND will be provided for City staff.

A combined Notice of Intent to Adopt the Mitigated Negative Declaration/Public Hearing Notice will be prepared in accordance with the CEQA Guidelines. Carollo will coordinate with the City to notice and distribute the Draft IS/MND pursuant to CEQA and City review procedures.

Atty. rev. 2023; Risk rev. 2023 Page 14 of 34

Deliverables: Public Review Draft Initial Study/MND in Word and PDF format; and up to five hard copies if the City requires them; combined Notice of Intent to Adopt the Mitigated Negative Declaration/Public Hearing Notice in electronic format.

Task 5.3.4 Final IS / MND
Upon closing of the public review period, responses to public and agency comments received regarding the Public Review Draft IS/MND will be prepared. As it is not possible to predict the number and/or extent of public comments that could be received on the IS/MND, this scope/budget assumes a modest number of comments and includes up to twelve hours of environmental staff time for preparation of responses to written comments. In the event that a large number of comments are received, or if additional technical work is required, additional time and budget may be required.

Formulate responses to the comments on the Public Review Draft IS/MND received during the public review period. Once draft responses to comments have been completed, they will be submitted to the City for review and approval. As required, the Draft IS/MND will be revised to incorporate relevant comments/data received during the public review period.

Revisions to the Draft IS/MND will be identified in tracked changes to facilitate subsequent review. This scope includes one round of review from City staff.

If mitigation measures are identified, Carollo will also prepare a MMRP in accordance with State CEQA Guidelines Section 15097 for use in ensuring implementation of the mitigation measures for the project. The mitigation measures will be included in a matrix checklist format for ease in tracking and will be included as an appendix to the Final IS/MND. Submit a Screencheck Final IS/MND, consisting of the Draft IS/MND as revised, the responses to comments, and the draft MMRP to the City for review.

Carollo will also prepare the required Notice of Determination (NOD). Following approval of the project, the City will be responsible for filing the NOD with the County Clerk and State Clearinghouse, and for payment of the Environmental Filing Fee to the CDFW as well as any County filing fees at the time the NOD is filed.

Deliverables: Screencheck Final Initial Study / MND and Final Initial Study/MND in Word and PDF format; Notice of Determination (NOD) in electronic format.

Task 5.4 — CWSRF Environmental Application
Carollo will complete the SWRCB's most current environmental application form and prepare supplemental technical documentation to address the Clean Air Act. This additional analysis, combined with the biological resources and cultural resources analyses prepared under Task 5.1, will provide the necessary federal requirements for CWSRF. Based on the nature of the proposed improvements, the site location, and previous experience with the CEQA-Plus process, no other supplemental analyses (aside from the CEQA document; see Task 5.3 above) are anticipated as part of the environmental package submittal to the SWRCB.

The CWSRF application will require addressing specific areas including:
■ Air Emissions - a stand-alone air quality study will not be prepared, but the CEQA Atty. rev. 2023; Risk rev. 2023 Page 15 of 34

document (Task 5.3) will include an analysis of any impacts associated with air quality. It has been assumed, based on the scope of the proposed project, that a General Conformity determination will not be required.
• Other Environmental Topics — this will address remaining issue areas associated with CWSRF requirements, including: (1) project location relative to the Coastal Zone, (2) farmland impacts, (3) flood hazards, (4) impacts to designated Wild and Scenic Rivers, and (5) location within a sole source aquifer. • CWSRF Environmental Alternatives Analysis - a matrix with accompanying discussion identifying the environmental impacts of three alternatives (including a No Build Alternative) considered for the proposed project will be prepared.

Deliverables: Administrative and Final Draft Environmental Review Form for CWSEF Environmental Application, and draft and final versions of an Alternatives Analysis Technical Memorandum for inclusion in the CWSRF Environmental Application and as an appendix to the IS/MND.

Task 6 — Wastewater Master Plan
Evaluate and develop a Wastewater Master Plan to provide a thirty -five-year roadmap for the City's wastewater treatment, disposal, and reuse needs. The new plan will update, replace, and expand on the 1993 Master Plan so that the WWTP facility has the necessary capacity and employs efficient processes and advanced technologies to treat liquids and solids in conformance with current and anticipated environmental standards.

The City will provide all available technical documents, earlier planning efforts, capacity and water quality studies, and onsite system reports available to assist with understanding current conditions or projected future flows — see Task 2. Carollo will assess all necessary regulatory, technical, environmental, and fiscal constraints and opportunities, and develop a comprehensive plan that will manage the Santa Maria community's current and future wastewater treatment in a sustainable, reliable, cost-effective, and resilient manner.

The Master Plan will communicate a comprehensive understanding of current and future wastewater flow rates and characteristics; the existing plant's treatment processes, capabilities, and constraints; current concerns; and future needs. It will include fully developed, validated alternatives and a recommended Capital Improvement Program ("CIP") plan to provide for flexible, reliable, and resilient ongoing operation, and should be guided by the following objectives and principles:
• Protection of the environment and public health.
• Flexible, but robust and cost-effective operations through performance optimization of existing facilities and evaluation and implementation of technologies and treatment and disposal methods.
• Pursuit and promotion of resource and energy recovery from plant operations. • Development of a CIP founded on comprehensive technical, economic, environmental, and financial decisions to identify, prioritize, and proactively manage aging infrastructure, improve capacity constraints, and prepare the City for future growth, new regulations, and climate change.

Atty. rev. 2023; Risk rev. 2023 Page 16 of 34

It is anticipated that the Master Plan will include the following twelve Volumes, each of which is discussed in the sub -tasks below:

1. Executive Summary.

2. Basis of Planning.

3. Wastewater Characterization and Process Modeling.

4. Existing Facilities Condition Assessment.

5. Wastewater Collection System.

6. Treatment Approach to Addressing New General Order.

7. Reclamation and Reuse.

8. Solids Treatment and Handling.

9. Energy Management.

10. Air Quality and Emissions Control.

11. Capital Improvement Plan and Overall Implementation.

12. Financial Plan and User Rates and Fees.

Task 6.1 — Executive Summary
The Executive Summary will be the first volume of the Master Plan and will provide a summary of the key points from all the other volumes.

Deliverables: Draft and Final Executive Summary, Volume 1, for the Master Plan in electronic format (PDF).

Task 6.2 — Basis of Planning
The purpose of this task is to develop the basis for development of the WWTP Master Plan with a planning horizon to 2060 (thirty-five years) and discuss the parameters that will bookend and define the boundaries between which the Master Plan will be developed. The product of this task will be Volume 2 of the Master Plan. Overall goals for the Master Plan will be developed and the following will be presented, discussed, and evaluated to define the limits for the master planning process:
• Plant History.
• Partners, Stakeholders, and Service Area.
• Environmental Setting and Land Uses.
• Regulatory Requirements. This work will include a detailed evaluation of the requirements of the new General Permit and the implications with respect to level of treatment. It will also consider air quality requirements for the City and surrounding area. Potential changes to regulatory framework due to chemicals of emerging concern and PFAS compounds will also be considered. The approach will be to hold a workshop with City staff (Workshop No. 1) and specialist team members to discuss and brainstorm future regulatory impacts to the WWTP. A chapter will be written to summarize the results.
• Population, Loading, and Flow Projections. Based on information obtained from the City, Carollo will develop sewer flow projections out to 2060. This will also include consideration of current and future municipal and industrial water use, as well as current and future anticipated septage receiving loads. This information will form the basis for sizing the capacity of the WWTP.
• Basis of Cost Estimates and Financial Planning Considerations. This section will outline the cost estimating criteria for use in developing cost estimates for Atty. rev. 2023; Risk rev. 2023 Page 17 of 34

new/refurbished wastewater treatment facilities. Carollo will rely on equipment cost estimates from vendors, cost estimates from past projects, and internal cost estimating teams to develop planning level cost estimates, with appropriate contingencies and escalation factors for the planning horizon. Costs will be developed to Class 4 costs as described by the AACE.

Deliverables: Develop materials for Workshop No. 1, Prepare Workshop Notes, Draft and Final Basis of Planning Volume 2 for Master Plan, in electronic format (PDF).

Task 6.3 — Wastewater Characterization and Process Modeling One of the essential components of the master planning exercise is understanding the characteristics of the existing incoming wastewater (influent). This will determine the current concentration and loading rate (when used with flow projection numbers) for organic loading, solids loading, and nutrient loading on the existing and future WWTP. This task will generate a separate chapter in the Master Plan.
■ Historical Influent Quality — As part of Task 2, Carollo will work with the City to obtain historical information related to the quality of the incoming wastewater, if possible, with and without the impact of septage deliveries. This information will help to develop historical trends about how the influent quality has changed over the last five years, which will help with defining how the quality may change moving forward. ■ Historical Wastewater Flows — Wastewater influent flow data for the past five years will be obtained from the City, including records of septage receiving loads. This information will be used to develop anticipated peaking factors to be used in the planning process.
■ Influent Sampling — It is likely that some additional water quality parameters will be needed, beyond those available in the historical data. Carollo will work with the City to develop a sampling and analysis plan to obtain data for additional wastewater parameters needed for process modeling.
■ Wastewater Characteristics for Modeling — Based on the information obtained from Items 1 and 2 above, Carollo will develop a table showing the wastewater quality to be used as a basis for the process modeling task.
■ Biological Process Modeling — To establish the capacity of the existing facilities and to size wastewater treatment technologies to meet the discharge limits in the General Permit, Carollo will develop a process model using the commercially available BioWin software.
■ Existing Facilities — A process model describing the existing treatment process will be developed. The model will be used to assess the capacity of the existing facilities to treat the current influent wastewater and identify process bottlenecks. This step will identify one or more process units that may require some rehabilitation to maintain performance until the new facilities are in operation. Technical Memorandum No. 1 will be developed to summarize the findings of the evaluation. ■ Future Facilities — A separate process model will be developed and the agreed wastewater characteristics from Item 4 will be input to assess future alternatives. The model will be used together with the anticipated flow projections to size appropriate treatment processes to achieve the desired treated effluent quality. The model will be used to compare treatment trains using different technologies and will help to identify how plant expansions can be phased in to meet anticipated growth and Atty. rev. 2023; Risk rev. 2023 Page 18 of 34

potential future regulations. A technical Memorandum will be developed to summarize the findings from the modeling work for future facilities; and will be included as part of Volume 3.

Prepare for and conduct Workshop No. 2 to discuss the wastewater characterization and process modeling outcome.

Deliverables: Workshop Materials for Workshop No. 2, Draft and Final of all sections, reports, and memos that compile Volume 3, in electronic format (PDF).

Task 6.4 — Existing Facilities Condition Assessment
This task will provide an assessment of the condition and remaining useful life of the existing WWTP facilities. This will include a visual condition assessment of all facilities by a team of mechanical, process, electrical and I&C, and structural engineers. For each asset, individual structure and process area, the team will determine the remaining useful life. This will be done by considering the consequence of failure and probability of failure scores for each.

Factors to be considered by the assessment team include overall condition, age, input from WWTP operations staff with respect to operational issues, and criticality.

Bearing in mind that the existing facilities will need to remain in good working order for the next eight to ten years, overall WWTP aspects to be considered include:
■ General visual condition and remaining useful life.
■ Hydraulic profile limitations.
■ Individual processes.
■ Plant spatial considerations.
■ Condition of operations and administration buildings. ■ Plant pipeline and processes analysis.
■ Auxiliary systems.
■ Electrical, telemetry, and SCADA systems.
■ Recommendations and cost estimates for items that require repairs and/or rehabilitation to keep the plant in compliance with the effluent discharge permit.

Volume 4 of the master plan will be developed based on the information above. Material from the above will be used in Workshop No. 3 to provide feedback and get input from the City.

Deliverables: Materials for Workshop No. 3, Draft and Final Volume 4, in electronic format (PDF).

Task 6.5 — Wastewater Collection System
The City is working with a separate consultant to develop and update the hydraulic model of the collection system. In addition, the City has a well -established closed-circuit television (CCTV) sewer inspection program. The purpose of the Collection System Volume is to provide a brief summary section, chapter, that will reference the ongoing work that the City is doing relative to the collection system, reference the Sanitary Sewer Master Plan (SSMP) and its recommendations, reference the Sewer Capacity Analysis study, and the City's Atty. rev. 2023; Risk rev. 2023 Page 19 of 34

General Plan. This will allow the reader to be directed to other documents/sources to obtain further details on the collection system.

Deliverables: Draft and Final Volume 5, in electronic format (PDF).

Task 6.6 — Liquid Treatment Approach to Addressing General Order As part of Task 6.2, Carollo, in collaboration with City staff, will identify the secondary effluent quality requirements to meet current regulatory requirements and future goals.

This task will identify and evaluate the various treatment train alternatives that will meet the secondary effluent quality needs. The evaluation of the alternatives will include development of process schematics, preliminary layouts, construction cost estimates, and O&M cost estimates. The process model developed in Task 6.3 will be used to assess the effluent quality impact of each treatment configuration and to help with sizing of each unit process.

It has been assumed that up to four process configuration layouts showing the conceptual plant arrangement will be developed. These might include:
• An alternative to expand the facilities on the existing site to accommodate the needed treatment facilities to meet the new regulations,
• An alternative to construct all new facilities to the east of Black Road, and largely abandon the existing facilities,
• A hybrid alternative that would expand/retain some facilities at the existing site and also construct new facilities to the east of Black Road, and • A fourth alternative, still to be determined.

Potential secondary treatment process alternatives for evaluation include conventional activated sludge with fine bubble diffusers; extended aeration activated sludge (longer sludge age and without primary clarifiers initially); oxidation ditches; and membrane bioreactors (MBR) for a higher quality secondary effluent. All process alternatives will be configured to provide the required nitrogen removal to meet the new General Permit and anticipated future effluent quality discharge limits. The BioWin process model will be used to determine the physical size of the secondary treatment alternatives, and the anticipated effluent quality from each. This information will be used in the evaluation to determine the most suitable approach.

Each alternative will be evaluated, and Workshop No. 4 (Alternatives Development and Selection) will be held with the City to discuss the alternatives and decide on the best approach for the City. Following the workshop, the selected alternative will be developed further to a conceptual design level that will include development of design criteria, and an updated cost estimate for inclusion in the CIP, including phasing to meet the plant expansion needs into the future.

Deliverables: Materials for Workshop No. 4, Draft and Final Volume 6, in electronic format (PDF).

Task 6.7 — Reclamation and Reuse
Currently, the City percolates all secondary effluent and gets water exchange credits for the percolated water. This task will evaluate if there are benefits to reusing the effluent rather Atty. rev. 2023; Risk rev. 2023 Page 20 of 34

than allowing it to percolate into the ground. This task will consider both the current and future regulatory drivers as well as legal considerations related to groundwater exchanges.

The Volume will include what was evaluated in terms of reuse, legal considerations and water rights, and why the City came to the decision point for the current arrangement, plus the short- and long-term approaches.

Some of the reuse alternatives that will be considered are:
• Agricultural reuse/irrigation,
• Title 22 irrigation,
• Industrial reuse opportunities,
• Potable reuse through a planned groundwater recharge system.

Following the evaluations, a meeting will be held with the City to present the results of the evaluation and decide the best approach to use in the short, medium and long term for the City.

Deliverables: Draft and Final Volume 7, in electronic format (PDF).

Task 6.8 — Solids Treatment and Handling
This task will identify and evaluate alternatives for solids treatment and handling. The solids handling options will go hand -in -hand with the liquids treatment alternatives developed in Task 6.5.

The evaluations will include the following:
• Anaerobic digestion, followed by sludge drying beds followed by composting (current operation)
• Dewatering secondary sludge followed by composting (no anaerobic digestion) • Solids thickening, followed by anaerobic digestion of secondary sludge, followed by drying beds and then composting, and
• Aerobic digestion followed by dewatering secondary sludge followed by composting.

Up to two technologies will be evaluated for solids thickening and dewatering. For example, rotary screen thickeners (RSTs) and dissolved air flotation (DAFT) for thickening, and belt presses, screw presses or centrifuges for solids dewatering.

The evaluation of the alternatives will include process schematics, process modeling (Task

6.3), preliminary design criteria, preliminary layouts, construction cost estimates, and O&M cost estimates. Following the evaluations, Workshop No. 5 will be held with the City to present the results of the evaluation and decide the best approach(es) to use.

Following the workshop, the selected alternative will be developed further to a conceptual design level that will include development of design criteria, and an updated cost estimate for inclusion in the CIP, including phasing to meet the plant expansion needs into the future.

Deliverables: Materials for Workshop No. 5, Draft and Final Volume 8, in electronic format (PDF).

Atty. rev. 2023; Risk rev. 2023 Page 21 of 34

Task 6.9 — Energy Management
The new or modified WWTP with enhanced secondary treatment such as activated sludge will require significantly more power than the existing plant. The City may want to consider installation of solar panels, wind turbines, battery storage, or other power generating/storage facilities in order to offset some of the power costs for the new WWTP.

This task will evaluate the electrical needs for the new WWTP and assess alternatives.

Generating power from biogas produced on site will depend on the treatment processes selected in Task 6.8.

Alternatives to be considered for this task are:
• Cogeneration using low emission combustion engines (only possible if biogas is available)
• Energy recovery using microturbines and fuel cells (only possible if biogas is available) • Energy recovery by converting biogas to compressed natural gas (CNG) for use in City vehicles or injection into a commercial gas line
• Installation of solar, wind and battery storage
• Bringing in food waste and/or fats, oil and grease (FOG) to enhance biogas production in anaerobic digesters
The evaluation of the alternatives will include process schematics, preliminary sizing, preliminary layouts, construction cost estimates, and O&M cost estimates. Following the evaluations, Workshop No. 6 will be held with the City to present the results of the evaluation and decide the best approach(es) to use.

Following the workshop, the selected alternative(s) will be developed further to a conceptual design level that will include development of design criteria, and an updated cost estimate for inclusion in the CIP, including phasing to meet the plant expansion needs into the future.

Deliverables: Materials for Workshop No. 6, Draft and Final Volume 9, in electronic format (PDF).

Task 6.10 — Air Quality and Emissions/Odor Control and Permitting This task will identify the facilities that impact air quality and that will need Air Pollution Control District (APCD) permits. The task will also identify other permits that may be needed during the course of the Program. Specific facilities for dealing with treatment plant odor will be addressed in the Volumes dealing with liquids and solids treatment.

The following will be completed:
• Prepare a Permitting Plan. The permitting plan will be in the form of a Technical Memorandum and will include a list of permits, contact persons, probable requirements and an anticipated schedule for the permit applications and receipt of permits. • Assist the City to begin coordination with APCD and other permitting agencies. • Draft and Final versions of a Permitting Plan to be incorporated into Volume 10.

Deliverables: Draft and Final Volume 10, in electronic format (PDF).

Atty. rev. 2023; Risk rev. 2023 Page 22 of 34

Task 6.11 — CIP and Implementation
Based on recommendations from the previous tasks, this task will develop the CIP and an overall implementation approach and schedule. It will include the final WWTP schematic, facilities layout, project cost estimate, O&M requirements and costs, project schedule and proposed project delivery method.

Task 6.11.1 Developing the CIP
Developing the CIP will include the following items:
■ O&M Costs will be developed for this task. These costs will be based on the current information that the City already has with respect to their O&M costs for the WWTP and will be updated and modified to suit the proposed treatment system identified as the most suitable approach for the City. Available data from existing similar plant configurations will be used to assist with developing appropriate values.
■ Capital cost in five- or ten-year increments up to the year 2060, whichever makes sense.

The focus of the CIP will be the infrastructure needs to meet the new General Permit but will also include separate projects identified for early implementation or in parallel with the major plant upgrade, and projects that will occur in the years following completion of the plant upgrade.

An initial list of projects and anticipated construction costs will be developed, along with a preliminary schedule to show when the various projects will need to be implemented. This list will be discussed with the City during a workshop (Workshop No. 7) to potentially eliminate or re -schedule certain projects. A final project list with capital cost estimates will be prepared, which will become the CIP for the Program. Project summary sheets will be developed for each item in the CIP to provide an overall description and summarize the major components of the Program.

Deliverables: Materials for Workshop No. 7, Draft and Final CIP, and Project Summary Sheets, in electronic format (PDF).

Task 6.11.2 - Project Delivery Evaluation
For the major CIP project to address the new General Permit limits a project delivery evaluation will be performed to decide on the best approach to deliver the project. Carollo will prepare materials and facilitate another workshop (Workshop No. 8) attended by City staff and stakeholders.

This will include the following topics:
■ Project objectives, constraints and drivers that influence the selection of the project delivery method.
■ A recap of the City's legal authority and procurement policies as they relate to project delivery.
■ A recap of available traditional and alternative delivery methods and identification of delivery methods warranting evaluation including traditional Design -Bid -Build, Construction Management -at -Risk, Fixed Price Design -Build, Progressive Design -Build, Design -Build -Operate, and Design -Build -Operate -Finance / P3. ■ A recap of public and private (P3) financing approaches. ■ Development of evaluation criteria categories and weighting factors to be used to compare project delivery methods, including project control, risk allocation, schedule, Atty. rev. 2023; Risk rev. 2023 Page 23 of 34

cost, and other (e.g., political, public acceptance, marketability, flexibility).

After presentation of the above, the group attending the Workshop will perform a preliminary alternative evaluation of the project delivery approach, based on weighted application of evaluation criteria. The preferred delivery approach for the major project to upgrade the WWTP to meet the new General Permit will be decided.

Deliverables: Project Delivery Evaluation Workshop No. 8 materials, Evaluation Criteria, Weighting factors, and Selected approach.

Task 6.11.3 Preparation of Volume 11
Carollo will prepare a draft of Volume 11 of the Master Plan that will incorporate the findings, materials, and decisions from all above sub -tasks. After completing the draft, it will be submitted to the City for review. Following the City's review, a meeting will be held to receive comments on the draft. A final version of Volume 11 will then be prepared. Carollo will present a summary of the final version during a meeting with City staff, leadership and other decision makers and stakeholders, as needed.

Deliverables: Draft and Final Volume 11, in electronic format (PDF), and presentation materials as needed.

Task 6.12 — Financial Plan and User Rates and Fees
The CIP from the Master Plan, developed in the previous task, will be used to update the user rates and fees for the City customers. This will include monthly rates and connection fees. This effort includes analysis, presentations, presentation support, reports, or meetings in support of the rates and fees adoption (recognizing a Prop 218 process will be required). All evaluations will be compiled into Volume 12 of the Master Plan. The City has a financial consultant. Carollo will work with the financial consultant as defined in the following sub -tasks. Information will be provided to the City's financial consultant who will update the user rates.

Connection Fee: Carollo will conduct the connection fee analysis, develop the proposed connection fees, and prepare a report. The evaluation will include changing the currently assumed flow, BOD, and TSS assumptions for the user categories and current O&M costs for the WWTP that are included in the existing rate model to include nitrogen. The changes to these assumed values will be based on updated flow, BOD, TSS and ammonia -N information for each of the customer categories. Carollo will develop a sampling plan so that samples can be collected for the different customer categories. The rate analysis will also include an intermediate rate analysis to supplement the CIP development.

User Rates: The City's existing financial consultant with develop updates to the rate model and future rates. Carollo will coordinate with the City's financial consultant and develop and provide the anticipated treatment cost per pound for TSS, BOD and ammonia -N, to be used in the rate analysis.

Funding Opportunities: This task also includes an analysis of funding opportunities. Carollo will work with the City (and its financial consultant as applicable) to develop a preliminary strategy for funding the project improvements. Based on the project capital and operational financial requirements developed in Task 6.11, Carollo will identify, evaluate, and recommend an appropriate funding strategy for the Program financing options including:

Atty. rev. 2023; Risk rev. 2023 Page 24 of 34

• State and federal funding programs (e.g., SRF, WIFIA, USBR). • Use of City -issued debt (e.g., bonds).
• Use of City cash reserves and PAYGO funding.

Assistance with Rate and Fee Adoption Process: Carollo will be available to present study findings and recommendations at up to three meetings at specific decision points to be identified by the City. Carollo will work with City staff to develop presentation materials in advance of each meeting, as appropriate.

Deliverables: Draft and Final Volume 12, in electronic format (PDF); also includes analysis, presentations, presentation support, and reports required for development of the Financial Plan.

Task 7 — Percolation Pond Capacity Analysis
The percolation pond capacity analysis will be completed, and recommendations will be implemented concurrently with development of the Master Plan to address percolation pond capacity as expeditiously as possible.

Carollo will evaluate the existing percolation pond performance and capacity to develop and evaluate interim and/or permanent alternatives to improve capacity to meet current and projected system demands and to strengthen WWTP resilience during wet weather flows. The analysis will consider the 240 -acre parcel acquired by the City east of the WWTP and across Black Road as part of the analysis and in conjunction with the proposed plant facility layouts for the future to 2060.

Task 7.1: Contract with Specialist Subconsultant
Carollo will contract with geotechnical subconsultant GSI/Yeh to assist with the field investigations and evaluations.

Task 7.2: Data Gathering and Analysis
Complete a desktop review of available geotechnical documentation to understand the historical characterization of geologic materials underlying the percolation ponds. Particular emphasis will be given to the hydrogeologic properties of the materials, any information about the interaction between the performance of the ponds with regional groundwater conditions, and comparison to geologic samples and laboratory results collected during field investigation collected as part of this exploration and prior assessments conducted by the City.

Prepare draft and final versions of a Percolation Pond Evaluation Plan that describes the steps to be undertaken to assess the existing pond capacity and the approach to expanding the capacity to meet future WWTP capacity needs. Discuss the draft report with the City to get their input before submitting the final version.

Deliverables: Draft and Final Percolation Pond Evaluation Plan, in electronic format (PDF).

Task 7.3: Field Investigations
Task 7.3.1 Geotechnical Exploration
Conduct a site walk during mobilization of the initial phase of exploration described below to confirm the scope of work. To characterize the geological materials below the percolation ponds, Atty. rev. 2023; Risk rev. 2023 Page 25 of 34

a series of geotechnical borings, test pits and cone penetrating test ("CPT") soundings will be advanced for the project. This work will be contracted by Yeh under a separate contract.

It is anticipated that the City will provide a backhoe and operator for the test pits. The exploration work will include logging of test pits to depths up to ten feet below ground surface ("bgs"), advancing soil borings to an approximate total depth of thirty feet bgs, and performing CPT soundings to thirty feet bgs.

The number of bores will likely range from six to twelve and will be supplemented with a similar number of test pits and up to thirty CPT soundings depending on the project goals percolation pond accessibility. A geologist/engineer will describe the geologic materials from the borings and test pits. The geologist/engineer will collect undisturbed soil samples for analyses of physical properties including permeability. The soil physical properties and hydraulic (permeability) analyses will be completed at the California Polytechnic State University (Cal Poly) Geotechnical Engineering Laboratory in San Luis Obispo and Yeh Laboratory in Grover Beach.

Upon receipt of laboratory analyses results, a data report will be generated to present the distribution of geological materials and the results of the laboratory analyses of these materials.

Deliverables: Draft and Final Data Report, in electronic format (PDF).

Task 7.3.2 Flow Monitoring
The City is in discussion with the Water Board regarding the percolation capacity of the existing ponds. One of the goals of this task is to develop data that can be presented to the Water Board to demonstrate the average percolation rate and/or the capacity of the existing ponds.

Carollo will conduct flow monitoring within the planned expansion area and/or the existing percolation ponds to develop a more comprehensive understanding of the barriers to groundwater percolation. The monitoring will include the installation of three stilling wells in up to three ponds, deployment of three pressure transducers with telemetry capabilities. For a period of approximately two months, the inflow of water into the percolation ponds will be monitored to estimate the rate of percolation into the groundwater.

The documentation of the field testing will be conducted with field visits and with remotely acquired data from the dataloggers using telemetry capabilities.

The assessment will determine whether the performance of the ponds has changed since similar studies were conducted by the City for the existing percolation ponds.

Following completion of field activities and delivery of the results of the soil laboratory analyses (Task 7.3), and review of available geotechnical documentation, the results will be presented in a meeting with the City. The meeting will present the findings from the exploratory soil borings and laboratory analyses, provide a description of shallow materials observed in the test pits and results of the permeability analyses, results from the flow monitoring, and any suggested operational changes, as warranted. All the results will be compiled into a Percolation Pond Technical Memorandum as part of Task 7.3.3.

Deliverables: Materials for meeting.

Atty. rev. 2023; Risk rev. 2023 Page 26 of 34

Task 7.3.3 Evaluate Alternatives for Addressing Percolation Pond Capacity Based on the findings from Task 7.3.2 develop and evaluate alternatives to address the percolation pond capacity issue. Previous studies have identified causes of poor performance to be clay layers at relatively shallow depths combined with very little hydraulic gradient to allow for infiltration/percolation. Options for improving the performance often consist of removal and replacement with less permeable materials. Performing a scaled pilot project to simulate various recommended strategies may be an alternative to be considered. The alternatives will include modification/rehabilitation of existing ponds, construction of new ponds to the east of Black Road, and/or a combination of these approaches. Preliminary cost estimates and sizing (as appropriate) will be developed.

Hold a workshop (Workshop No. 9) with the City to discuss the alternatives, the costs and the pros and cons of each approach.

Develop a draft and final Percolation Pond Analysis Technical Memorandum summarizing the work completed and the recommended approach, construction cost estimate and anticipated schedule. The memo will also make recommendations whether the pond modifications should be implemented separately or as part of the work identified in the Master Plan.

Deliverables: Materials for Workshop No. 9, Draft and Final Percolation Pond Analysis Technical Memorandum and recommendations in electronic format (PDF).

Task 7.3.4 Regional Board Support
Provide support for interactions with the Water Board for the design, planning, and construction of the percolation pond expansion.

Task 8 — Stakeholder Outreach
Task 8.1 — Outreach and Communication Strategy
Carollo will work with the City to develop an overall outreach and communication strategy for the project. As necessary, the team will be augmented by additional City staff and/or a public outreach sub -consultant to develop the strategy. An outreach and communication strategy workshop (Workshop No. 10) will be held with the City to identify stakeholders, decide on when best to engage the stakeholder group, decide on initial message(s), develop initial milestones and action items. Information from the workshop will be used to develop a draft Stakeholder and Community Engagement Plan. This plan will build on any existing plan and efforts, and Carollo will assist the City in identifying the key stakeholders to engage and the type of engagement needed.

After submitting the draft Plan, a meeting will be held with the City to discuss any comments on the Plan. Subsequently a final version of the Plan will be developed and will be submitted to the stakeholder group at the appropriate time, which will initiate the stakeholder communication and outreach process.

Deliverables: Outreach and Communication Strategy Workshop (Workshop No. 10) materials, facilitation, and minutes/action items. Draft and Final Stakeholder and Community Engagement Plan, assistance with preparation of materials for stakeholder and community meetings, and preparation of meeting minutes. All deliverables in PDF format.

Atty. rev. 2023; Risk rev. 2023 Page 27 of 34

Task 8.2 — Outreach Meetings
Work with the City to facilitate additional Stakeholder Outreach meetings. For the purposes of this scope of work it has been assumed that Stakeholder Outreach meetings will be held once every quarter for the first eighteen months of the program, but this has not been confirmed. The frequency of meetings may be adjusted following the Workshop discussed above.

Assist the City to develop materials for each meeting and then prepare the meeting notes after each meeting. For the purposes of the Phase 1 work, four Outreach meetings are assumed.

Deliverables: Outreach and Communication Meeting materials, facilitation, and minutes/action items all in electronic format, for a total of four meetings.

Atty. rev. 2023; Risk rev. 2023 Page 28 of 34

EXHIBIT "B"

PAYMENT
I. PROGRESS AUTHORIZATION
Written authorization to proceed from the City authorizes the Contractor to generate the

NOT -TO -EXCEED COST OF ONE MILLION, NINE HUNDRED TWO THOUSAND, TWO HUNDRED SEVENTY-FOUR AND ZERO DOLLARS IN FEES for above listed tasks in accordance with the rate schedule details that follow.

TOTAL NOT -TO -EXCEED COSTS: $1,902,274.00
The City reserves the right to withhold any amount if unsatisfied with the service the Contractor provides or if the Contractor exceeds this written authorization for the above not -to -exceed costs.

II. INVOICE PROCEDURE
The Contractor's bills shall be substantiated by appropriate documentation, and include an itemized listing of personnel, sub -Contractors, and other direct costs incurred.

Atty. rev. 2023; Risk rev. 2023 Page 29 of 34

LL
LL
71 0
l-
00000N011,
N'0 0 0 N P- T W
N N,, W.3 O N r
,....,...A.

S 2.042,274
S 140.000
S 1.902,274
Suituud 8 Iane.l
8 '88 "8 '
0 0 0 0
o o
8 0
N
3D3d
' mt--to Ri o0
on.-- N. '000
-- O.- Q O N N.- Q
6 dn1Jetnt tuetlnsuoagnS
'8'28"
O .-.0c7,4
' o
N
N
(dminie lax3)
aaj tuetlns uoagnS
' ' 0 ' O 0 10 '
o r 0,-
vi M of
0 N r N
� N
0 O.

C,
j Joge-i onoJe3
Q (N� [�pp
N O V M N c0 O^ .N-
-4.:i N o d
N N r• v a, n r-
N
s noH Jogei ietol
n m
leoual3
5ulssaooJd wawnaOD
m
to N m o N W N
Lo
N
solgdeJO/ueolugaalcu5
°' o 0 ' 0 N o o e
leuolssa;oJd tuetslsse
0 N
<' M 0 m 0 m 0 0
W .-
N
0 N
leuolssa;oJd
CC;
N I- O M O 0 00 N,
leuolss a;ad 3oafoJd
,33
N oo vN, o o N o `c
Q
leuolssa;oid
taa[oJd peaj
, N -.41.

N 0
17,- O N N Q O
E.
'0
_
0 leuolssa;oJd Joluas
'"4.e-0041,7,‘-', m ''
m
JotaaJia Jd weJ6o
0 �i ,- o N
N N
N
Hourly Rates
Task 1 -Project Management. Administration and Meetings/Workshops Task 2 -Data Collection and Review
Task 3 -Regulatory Support
Task 4 -Wastewater Treatment Plant Performance Assistance Task 5 - CEQA/Environmental Process
Task 6 - Wastewater Master Plan
Task 7 -Percolation Pond Capacity Analysis
Task 8 -Stakeholder Outreach
Grand Total for Phase 1 Services
(Less Current Purchase Orders for Interim Work
Net Contract A mount for Phase 1 Services
CAROLLO ENGINEERS. INC.

FEE SCHEDULE

CITY OF SANTA MARIA
California
Rates Through Phase 1 (2024)
Hourly Rate
Engineers/Scientists
Assistant Professional $200.00
Professional 235.00
Project Professional 283.00
Lead Project Professional 305.00
Senior Professional 320.00
Technicians
Technicians 158.00
Senior Technicians 220.00
Support Staff
Document Processing / Clerical 135 00
Project Equipment Communication Expense 14.00
(PECE) Per DL Hour
Other Direct Expenses
Travel and Subsistence
Mileage at IRS Reimbursement Rate
Effective January 1, 2023
at cost
$.655 per mile
Subconsultant cost + 8%
Other Direct Cost cost + 10%
Expert Witness Rate x 2.0
Atty. rev. 2023; Risk rev. 2023 Page 30 of 34

£
ti
a
s
SS
Y
'z
g V
;
$
V
PE
5 s.
00110'ra 1
S 2
7 2 2

2801.1211 1 0 05 7201 824/onFYe6 aNMYIPMY 5. Fn F rt810 Ink 1.1 . pm10N 80000Ilan
136112.04244h0HN8005264.04424 CeNNnwen 118 04000)
.915401w2 -r
fah. 1.4 .770507W420m1M3s 10412 hr
1001 1 pm00k00nanop• 165.10 pMW
14022.092 2 00040217 anal 22021
140221.Ow.wep 424 k3y3m D27a MOWS LIN
. oats 303 tnt«rm00102 2
it21 • 2 9 ry Supped
Rp4 70063- 07o Supped57128
renew, la•1075s and Dn 270554
. Des 070 601194 OW108 and $000030112
- D0W067701131nary Im/Wds
- D5V4op Preliminary Cott Estimates l se a
1 . . .
f
$ 728
$ 776
$
$ 1?936
TWAT•POWNg45P0MCpM17 MOMSM
ask 7.1-COntra4t0M 5,043112$IA7WSW72
126172- Dan 01074114 an4M4ryln
-
S •$
4 1,464
15 10
0 1300
$ 1360
S 1,160
S 30916
$ 4005
S 24,25
• Drat and 11na1.0321mW Pend 0720,8005 Man
4 I-
r
1R
_
2_
9 4
77 8
0 22
32 8
-
6 8
2 f •
2 1,760
f 8,545
0_ •
S 1?46
$
336
$ 301
$ 6128
-
$ 7260
5 21.780
f 27.,70

10.44030100
- 202eM < I0 21 0 6 7102420 am D41Rome
192
$ 115943
$ 11655
• F3w7bn7M1$2241202unf
064
$ 31264
5 25,614
-074104104Nm07rw0424100.15080 PondSM10rnMm 11111111
task 74• 020302603rd Supped
336
$ 1925
0 28,361
20D
$ 1300
$ 7236
f 19020
ratt 8.15 09004 in 0 0, and Comun 004004/
Pr.4r. 50401M.0ks13P 00.10
2404
_
$
$•
1 476
S 476
$ 6096
• 00002 000.09 90047
:0042.110,990010612.0 and Ce0054110 Ibid4 114Man
Develop• workshop 1441011410 .14 1201024 1 000
workshopworkshop482•0.m..Marano, _
• 40.022 matend4 .2421052093 bur 6.10.6650
55 980
720
1,297
6 _ 55
$ 960
0 725
4 4 0,12
$ 10,720
$ _17.492
S 13,55
5 5 34,112
•
200
710
0 10
400
1402
9000
110
000
0145
a 1,000272
a 55
0, 2
a 20210
$ 27400
a 24200
3 602 1104

9.0421142
lest 0 5 Orders 101!mono, Wart
S 140.000
400 Centred 2moun for Ph1011 6.044
S 1902.274
Atty. rev. 2023; Risk rev. 2023

Page 31 of 34 ends

EXHIBIT "C"

Atty. rev. 2023; Risk rev. 2023 Page 32 of 34

3) Self -insured Retentions
Self -insured retentions must be declared to and approved by City. City may require Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.
4) Other Insurance Provisions
a) The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
i) The City of Santa Maria, its officers, officials, employees, and volunteers are to be covered as additional insureds on the policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used). ii) For any claims related to this project, Contractor's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of Contractor's insurance and shall not contribute with it. iii) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be cancelled or reduced, except with notice stating the title of this Agreement to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return -receipt requested. iv) Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not City has received a waiver of subrogation endorsement from the insurer. v) If any of the required policies provide claims -made coverage:
(1) The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
(2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. (3) If coverage is cancelled or non -renewed, and not replaced with another claims - made policy form with a Retroactive Date prior to the Agreement effective date, the Contractor must purchase "extended reporting" coverage for a minimum of five (5) years after completion of work.
5) Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.
6) Verification of Coverage
a) Contractor shall furnish City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause.

Atty. rev. 2023; Risk rev. 2023 Page 33 of 34

b) All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive Contractor's obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications, at any time. 7) Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Atty. rev. 2023; Risk rev. 2023 Page 34 of 34

RESOLUTION NO.

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

CALIFORNIA, APPROVING AN AGREEMENT FOR PROFESSIONAL SERVICES WITH CAROLLO ENGINEERS, INC. FOR WASTEWATER TREATMENT PLANT

PROGRAM MANAGEMENT SERVICES
WHEREAS, on September 25, 2020, the Central Coast Water Board adopted General Waste Discharge Requirements Order No. R3-2020-0020 for Discharges from Domestic Wastewater Systems with Flows Greater than 100,000 Gallons per Day (the "General Permit"); and
WHEREAS, the City of Santa Maria ("City") was required to enroll under the General Permit, which requires that the existing Wastewater Treatment Plant be upgraded to meet permit requirements, a project that will be significant in both scale and cost; and
WHEREAS, the City requires complex professional, technical, and programmatic support for the project; and
WHEREAS, in March 2023, the Utilities Department released a Request for Qualifications to solicit submittals from qualified firms to provide program management services for the project; and
WHEREAS, of the two submittals received, a selection committee determined that the submittal from Carollo Engineers, Inc. met the needs of the City as advertised in the Request for Qualifications; and
WHEREAS, Carollo Engineers, Inc. and the Utilities Department negotiated the terms of an agreement to provide the services required by the City; and WHEREAS, execution of the agreement enables the City to maintain its critical and time -sensitive path toward compliance under the General Permit.

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

1. Authorize the City Manager or designee to enter into an Agreement for Professional Services with Carollo Engineers, Inc. for Wastewater Treatment Plant Program Management Services for Phase 1 services, 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 original terms of the Agreement, including but not limited to services for future phases; 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.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 5th of December 2023.

Mayor
ATTEST:

Chief Deputy City Clerk
APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director
Inteirm City Manager

FOR THE COUNCIL MEETING OF DECEMBER 5, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Assistant City Manager/Director of Community Development Chuen Wu
SUBJECT: Adoption of a Resolution Adopting a Negative Declaration Pursuant to Government Code Section 65580 et seq and Adoption of a Resolution Repealing the 2015-2023 Housing Element and Adopting the 2023- 2031 Sixth Cycle Housing Element
Description:

The City Council will consider the repeal of the 2015-2023 Housing Element and the adoption of the 2023-2031 Sixth -Cycle Housing Element of the City's General Plan in accordance with Section 65588 of the California Government Code.

Environmental Notice: Environmental Review for this project was completed through the preparation of an Initial Study and Negative Declaration pursuant to the California Environmental Quality Act State Guidelines.

RECOMMENDATIONS:
1) Adopt a Resolution adopting a negative declaration for the adoption of the 2023 sixth cycle Housing Element, Pursuant to State Government Code Section 65580 et seq Citywide; and 2) Adopt a Resolution repealing the 2015-2023 Housing Element and adopting the 2023-2031 Sixth Cycle Housing Element and forwarding the adopted document to the State Department of Housing and Community Development for their certification pursuant to State Government Code Section 65585.

BACKGROUND:

The Housing Element, as one of the many required elements of the City's General Plan, provides a written framework for meeting the housing goals of the City. The City adopted the current Housing Element in 2015. California Government Code Sections 65580 through 65589.11 establish the requirements for housing elements in California. Unlike the other required elements of the General Plan, State law requires that the Housing Element be updated every eight years. This periodic update is required to reflect recent changes in State Law, provide updated information on City housing programs, review and adjust the City's strategy for meeting its housing needs, and to demonstrate that the City has the land capacity to meet its Regional Housing Needs Allocation (RHNA).

Additionally, the Housing Element is the only component of the General Plan required by

State law to be reviewed by the State Department of Housing and Community Development (HCD) prior to official certification.

Planning Commission Review
The draft Housing Element and associated Initial Study and Negative Declaration (IS/ND) were reviewed by the Planning Commission at a public hearing on November 15, 2023, where both items were recommended for adoption by the City Council.

DISCUSSION:

The draft Sixth -Cycle Housing Element is provided as Attachment A to this report. Section I provides the introduction, including descriptions of the analysis methods, data sources, and public outreach efforts used in its preparation. Section II provides a summary of the projected housing needs, including the RHNA. Section I I I summarizes the adequacy of the City's housing sites and housing resources with references to relevant appendices.

Section IV contains goals, policies, and actions related to housing in Santa Maria.

Appendices `A' through 'G' provide the full background data, comprehensive research, and analysis used to inform the development of the Element, including the City's goals, policies, and programs presented in Section IV.
2023-2031 Housing Element Subjects
California Government Code Section 65583 requires local governments to address specific subjects and analyses within their Housing Elements. These include:
• A Housing Needs Assessment, to examine the current demographic, employment, and housing trends and conditions in the City, and from that develop the projected housing needs of the community, with attention paid to special housing needs (e.g., large families, persons with disabilities). • Evaluation of the Current Housing Programs, to gauge the City's progress in implementing policies and programs and determine if current programs warrant amendment.
• Inventory of Potential Available Housing Sites, to demonstrate that within the City there are enough residential and mixed -use zoned properties of sufficient size to accommodate the projected number of new housing units needed per income level (RHNA).
• A Constraints Analysis, where existing and potential governmental and nongovernmental barriers to housing development are identified and analyzed. • Affirmatively Furthering Fair Housing (AFFH), through analysis of significant disparities in housing needs and access to opportunity which may lead to segregated living patterns.
• Updated Policies and Programs, to be carried out during the 2023-2031 planning period to fulfill the identified housing needs, relieve constraints, facilitate the 2 development of adequate housing for all income levels, and facilitate integrated and balanced living patterns and fostering compliance with civil rights and fair housing laws. Each program is required to include specific, quantifiable actions the City will undertake during the sixth -cycle planning period. • Documentation of Community Engagement Efforts. State law emphasizes and requires robust community engagement during the Housing Element update process, which includes reaching out to individuals of all economic levels and historically underrepresented groups within the community.

Regional Housing Needs Allocation
The draft Sixth -Cycle Housing Element incorporates the RHNA assigned to the City of Santa Maria by the Santa Barbara County Association of Governments (SBCAG). For the sixth -cycle of the RHNA, which is the statuary planning period of February 2023 to February 2031, the City's assigned RHNA is 5,418 units.

The total RHNA requirement is divided into four affordability categories, established according to the Area Median Income (AMI) for Santa Barbara County. These categories include very low-income residential units, which are affordable to households earning less than 50 percent of AMI; low-income residential units, which are affordable to households earning between 50 percent and 80 percent of AMI; moderate -income residential units, which are affordable to households earning between 80 percent and 120 percent; and above moderate -income residential units which are affordable to households earning upwards of 120 percent of AMI.

Appendix B (Sites Inventory & Methodology) to the proposed Housing Element provides a detailed list of the potential available housing sites and a map of the sites, documenting that the City of Santa Maria has sufficient suitable sites available to accommodate the City's RHNA for each income level. The housing sites inventory analysis considered various factors in site selection including whether the site is vacant or very underutilized, whether the infrastructure is available, or whether other limitations that would constrain the future development of housing units. The underutilized sites have been analyzed and are considered viable sites based on the age and/or condition of the existing structure, high demand for housing, and recent development trends. 2023-2031 Housing Element Programs
The 2023 Housing Element goals include promoting new housing construction, conserving, and improving the City's existing housing stock, reducing, or removing government constraints on housing, addressing housing for those with special needs, and promoting equal housing opportunities. The element includes policies and programs related to each of these goals.

An analysis of the 22 programs contained within the current 2015 Housing Element, along with the input received during the public outreach efforts have been incorporated into the proposed programs (draft Element Section IV.B). The draft Element includes the continuation of those successful existing programs, as well as new programs developed 3 to address emerging housing opportunities and constraints, address changes in State law, and provide innovative approaches to accommodate the sixth cycle RHNA.

Some of the programs that will continue from the 2015 Housing Element include Programs 1.B: Density Bonus, 1.E: Prioritization of Services, 2.B: Code Enforcement,

5.A: The Homebuyer Assistance Program, 5.B: Tenant -Based Assistance, and 5.C:

Rental Assistance.

Programs responding to new State laws include Programs 1.H: Housing on Religious Institution Sites, 1 .1: Surplus Land Act Sites, 3.B: Objective Design Standards, 5.D: Fair Housing Program, 5.E: Tenants Rights Information, 5.F: Environmental Issues Identification and Action, and 5.G: Environmental Justice. Additionally, Program 3.F: R-2 and R-3 Zoning District Densities will directly increase housing production by increasing the maximum multi -family residential densities above what is currently permitted.

Program 1.F: Annexation Program also has the potential to increase housing production.

The City has included programs to support the needs of extremely low-income households, such as supporting accommodation for seniors and persons with disabilities (Program 4.A), supporting the development and preservation of housing for unhoused individuals and support services to the homeless (Program 4.B: Supportive Housing for Homeless Persons). Since State law now allows the City to credit Accessory Dwelling Units (ADUs) toward the City's RHNA, the City will monitor ADU production through Program 1.D: Accessory Dwelling Units to ensure targets are met. Part of that effort will be to conduct annual ADU rental income surveys and report the results with the City's General Plan Annual Reporting.

For the full list and description of programs please see Housing Element Section IV.B Goals, Policies, and Programs. The new programs are intended to significantly increase the amount and types of housing for all income levels in Santa Maria. These efforts are expected to be initiated throughout the planning period, which is from February 15, 2023, to February 15, 2031.

Community Engagement and Outreach
The Community Development Department conducted a comprehensive community engagement and outreach strategy and has used the community input gathered to help develop the 2023 Housing Element.

Four public workshops, specifically on the topic of Affirmatively Furthering Fair Housing, were conducted during October and November 2022. These workshops were held at various locations throughout the city, including Maramonte Park Community Center, Grogan Community Center, and the Santa Maria Public Library's Shepard Hall. In total, approximately 150 people attended the workshops, with an additional ten attendees over Zoom available for the November 7th workshop. The City was available to provide translation and interpretation services at all events upon request. The Mixteco Indigenous Community Organizing Project (MICOP) has been a partner of the City of Santa Maria in 4 the General Plan Update, ensuring that traditionally underrepresented groups, such as Mixteco residents, are proactively sought for input in shaping the future of Santa Maria.

The Housing Element update was presented to the Planning Commission at a study session on March 3, 2022, and to the City Council as an Informational Report/Briefing on April 5, 2022. At these meetings, city staff provided an overview of the City's demographics and housing needs. These meetings provided decision -makers and the public an opportunity to provide input early in the process.

Notifications of public outreach events were distributed to the City's email database in English and Spanish as well as information and updates provided through the City's Housing Element Update webpage. Direct outreach to stakeholders and organizations that provide housing and related support services in the community was also completed, as well as news releases, social media notifications, and an online Housing survey. The full listing of outreach efforts is provided in draft Element Section 1.E, with descriptions of the outreach strategy and methods, an overview of the public comments received, and copies of the City's outreach materials, provided in Appendix E.

State Department of Housing and Community Development Review The Community Development Department provided the draft Housing Element document to HCD for their review on two separate occasions, modifying the draft each time in response to HCD comments. Prior to each submittal to HCD, the City requested public comment on the draft, including posting the updated draft Element on the City website, publishing news releases, and sending e -mails to those who signed up for Housing Element and General Plan process announcements. On October 25, 2023, HCD issued their confirmation that the draft Housing Element is in substantial compliance with state law (Attachment B) and may be certified following City Council adoption.

Alternative(s)
The City Council may direct minor modifications to be made to the draft Sixth -Cycle Housing Element document. Significant modifications, such as revisions to goals, policies, and/or programs of the draft, will necessitate an additional review of the draft by HCD. HCD would need to determine that the modified draft substantially complies with state law prior to the modified draft returning to the City Council for adoption consideration.

Environmental Review
Under the requirements of the California Environmental Quality Act (CEQA), a Negative Declaration (MND) was prepared and circulated for a public review period of 30 days, starting on December 15, 2022, and concluding on January 17, 2023. Staff and the Planning Commission recommend that the Negative Declaration be adopted. No additional environmental review is required.

Fiscal Considerations
The costs for preparation of the Draft sixth -cycle Housing Element are covered under the approved budget for the General Plan Update, which is $1.7 million from the City's General Fund as well as funding from the Regional Early Action Planning (REAP) and the 5 Local Early Action Planning (LEAP) grants. City Council adoption of the Housing Element, and subsequent certification by HCD, is a pre -requisite for the City to be eligible for various federal, state, and regional funding programs, including Caltrans and HCD grants.

Impact to the Community
The 2023-2031 Sixth -Cycle Housing Element will serve as the primary source of information on housing policies, programs, and resources for the next eight years, and will facilitate a housing -inclusive community, where existing and projected demands for housing are adequately met across all income levels.

Other Agency Review
Upon final adoption by the City Council, the final draft Housing Element becomes the official Sixth Cycle Housing Element for the City of Santa Maria. The adopted Sixth Cycle Housing Element will then be provided to HCD for their review and certification.

ATTACHMENTS
A: Draft Sixth Cycle Housing Element 2023-2031
B: HCD Letter dated October 25, 2023
C: CEQA Initial Study/ Negative Declaration
6 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, ADOPTING A NEGATIVE DECLARATION FOR
THE ADOPTION OF THE 2023 SIXTH -CYCLE HOUSING ELEMENT,
PURSUANT TO STATE GOVERNMENT CODE SECTION 65580 ET
SEQ. CITYWIDE
WHEREAS, the City of Santa Maria initiated an amendment to the Housing Element of the General Plan, in accordance with Title 7, Division 1, Chapter 3, Article 10.6 of the California Government Code; and
WHEREAS, the proposed review and update is necessary for public necessity, convenience, and general welfare in that it identifies the housing needs of the community and programs to achieve the housing goals, policies, and objectives of the City of Santa Maria; and
WHEREAS, the City is required to submit a revised Housing Element for the 2023- 2031 planning period for certification by the State Department of Housing and Community Development Review for the next eight -year cycle (the "sixth cycle"); and WHEREAS, as provided in Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and WHEREAS, the provisions of the California Environmental Quality Act of 1970 (CEQA), Public Resources Code Sections 21000 et. seq., as amended, require the evaluation of environmental impacts of said projects; and WHEREAS, an Initial Study and Negative Declaration for the draft 2023 Sixth Cycle Housing Element was prepared pursuant to CEQA Guidelines Section 15070, assessing the potential environmental impacts that might result from the adoption of the Housing Element for the 2023-2031 sixth cycle; and
WHEREAS, the required notices were published, and the Negative Declaration was circulated for public review, sent to every responsible agency with jurisdiction over the project, and placed in a public location; and
WHEREAS, the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and WHEREAS, No California Native American tribe requested consultation; and WHEREAS, on December 15, 2022, the City released the draft Initial Study and Negative Declaration for a public comment period of 30 days, concluding on January 17, 2023, and the City considered all public comments received; and

WHEREAS, the Planning Commission of the City of Santa Maria held a regularly scheduled public hearing on November 15, 2023, for the purpose of receiving evidence and considering the Initial Study and Negative Declaration and the proposed draft 2023 Housing Element; and
WHEREAS, after considering all evidence, the Planning Commission, in Resolution No. 2822, recommended to the City Council the adoption of a Negative Declaration for the Project; and
WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council of the City of Santa Maria has reviewed and considered the Initial Study / Negative Declaration (Attachment C of the City of Santa Maria Council Agenda Report dated December 5, 2023, and incorporated herein by reference) for the 2023 Sixth Cycle Housing Element; and WHEREAS, there is no substantial evidence in the whole record before the City Council supporting a fair argument that the project as described in the Initial Study / Negative Declaration will have a significant effect on the environment; and WHEREAS, at the completion of the public hearing, the City Council heard and duly considered all evidence, including evidence presented in the staff report and all written and oral testimony; and
WHEREAS, the Initial Study / Negative Declaration reflects the City Council's independent judgment and analysis.

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

1. The above recitals are true and correct and incorporated herein by reference.

2. The City Council adopts the Negative Declaration for the project (Attachment C of the City of Santa Maria Council Agenda Report dated December 5, 2023, incorporated herein by reference) for the Sixth Cycle Housing Element.

3. The records of these proceedings are located in the Planning Division of the City of Santa Maria, 110 South Pine Street #101, Santa Maria, California 93458.

4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance to the intent of this document is maintained. In doing so, the Assistant City Clerk shall consult with the City Manager and the 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 day December 5, 2023.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director
Interim City Manager

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, REPEALING THE 2015-2023 HOUSING
ELEMENT AND ADOPTING THE 2023-2031 SIXTH CYCLE HOUSING

ELEMENT AND FORWARDING THE ADOPTED DOCUMENT TO THE

STATE DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT FOR THEIR CERTIFICATION PURSUANT TO STATE
GOVERNMENT CODE SECTION 65585.

WHEREAS, the City of Santa Maria initiated an amendment to the Housing Element of the General Plan, in accordance with Title 7, Division 1, Chapter 3, Article 10.6 of the California Government Code; and
WHEREAS, Section 65300 et seq. of the California Government Code mandates that each California city adopt a comprehensive, long range General Plan to guide the physical development of the City; and
WHEREAS, in accordance with Section 65588 of the California Government Code, each jurisdiction must update its Housing Element periodically, with specific deadlines established by the State Department of Housing and Community Development (HCD); and WHEREAS, the proposed review and update is necessary for public necessity, convenience and general welfare in that it identifies housing needs of the community and programs to achieve the housing goals, policies, and objectives of the City of Santa Maria; and
WHEREAS, the City is required to submit an updated Housing Element for the 2023- 2031 planning period for certification by the State Department of Housing and Community Development Review for the next eight -year cycle (the "sixth cycle"); and WHEREAS, the Housing Element Update web page was established on the City web site to provide information regarding the update, including announcements and materials for public workshops and meetings, provide links to the draft 2023 Housing Element document versions as they were produced; and
WHEREAS, to comply with State Housing Element Law, the City of Santa Maria, California has prepared the Draft Housing Element for the 2023-2031 planning period in compliance with State Housing Element Law and has documented the City has an adequate number of existing appropriately zoned and sized sites that can accommodate the number of housing units sufficient to meet the City's sixth cycle Regional Housing Need Allocation (RHNA); and
WHEREAS, as provided in California Government Code Section 65350 et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and

WHEREAS, an Initial Study and Negative Declaration for the draft 2023 Housing Element was prepared pursuant to California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et esq., CEQA Guidelines Section 15070, assessing the potential environmental impacts that might result from the adoption of the Housing Element for the 2023-2031 sixth cycle; and
WHEREAS, the required notices were published and the Negative Declaration was circulated for public review, sent to every responsible agency with jurisdiction over the project and placed in a public location; and
WHEREAS, the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and WHEREAS, no California Native American tribe requested consultation; and WHEREAS, the City conducted substantial and broad public engagement using a methodical process including: 1) the establishment of a Housing Element page on the City's website, through which the city has received input directly from residents and businesses; 2) Providing materials in Spanish and English, making Spanish language interpretation available for Housing Element public meetings, and partnering with the Mixteco Indigenous Community Organizing Project (MICOP) to provide Mixteco language speakers facilitation and interpretation support; 3) an on-line Housing survey taken by 457 respondents (111 of those responses using the Spanish language survey); 4) Housing Element 'News Releases' in English and Spanish published to announce the issuance of each draft of the Element; 5) four public workshops, specifically on the topic of Affirmatively Furthering Fair Housing, were conducted during October and November 2022; and
WHEREAS, in accordance with Government Code Section 65585 (b), on November 28, 2022, the City posted the draft Housing Element and requested public comment for a 30 -day review period; and
WHEREAS, on December 15, 2022, the City released the draft Initial Study and Negative Declaration for a public comment period of 30 -days, concluding on January 17, 2023, and the City considered all public comments received; and WHEREAS, after the draft Housing Element 30 -day public review period, and after responding to public comments, the City on February 2, 2023, submitted the draft Housing Element to the State Department of Housing and Community Development for its review; and
WHEREAS, on May 3, 2023, the City received a letterfrom HCD providing its initial findings and recommended revisions regarding the draft Housing Element; and WHEREAS, on August 29, 2023, the City published the second revised draft Housing Element responding to HCD's findings and requested public comment on the draft, and after receiving and responding to public comments, on September 8, 2023 the City submitted the second revised draft Housing Element to HCD for its review; and

WHEREAS, on October 4, 2023, the City met with HCD staff to discuss recommended clarifications and revisions to the draft Housing Element; and WHEREAS, on October 11, 2023, the City published the third revised draft Housing Element responding to HCD's October 4, 2022, comments, and requested public comment on the draft in conformance with State law, and at the conclusion of the public review period submitted the third draft Housing Element to HCD for its review on October 19, 2023; and
WHEREAS, on October 25, 2023, the City received a letter from HCD reporting that after their review the draft Housing Element will substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq.) when it is adopted, submitted to and approved by HCD, in accordance with Government Code section 65585.; and WHEREAS, the Planning Commission of the City of Santa Maria held a regularly scheduled public hearing on November 15, 2023, for the purpose of receiving evidence and considering the Initial Study and Negative Declaration and the proposed draft 2023 Housing Element; and
WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, at the public hearing, the Planning Commission heard and duly considered all evidence, including evidence presented in the staff report and all written and oral testimony and;
WHEREAS, on November 15, 2023, with a 4-0-1-0 vote, the Planning Commission, in Resolution No. 2823, recommended to the City Council the repeal of the 2015-2023 Housing Element and the adoption of the 2023-2031 Sixth Cycle Housing Element, and the forwarding of the document to the State Department of Housing and Community Development for their certification; and
WHEREAS, the City Council considered and relied on the Planning Commission's November 15, 2023, recommendation (4-0-1-0 vote) to adopt the Negative Declaration for the draft Sixth Cycle Housing Element, in making its decision.

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

1. The above recitals are true and correct and incorporated herein by reference.

2. The City Council finds that:
(a) The 2023 Sixth Cycle Housing Element provided as shown in Attachment A to the City Council Staff Report, dated December 5, 2023, and incorporated herein by reference, substantially complies with Housing

Element Law, as provided in Government Code 65580 et seq., and contains all provisions required by State Housing Element Law.
(b) Pursuant to California Government Code Section 65583.2, the existing uses on the non -vacant or underutilized sites identified in the site inventory to accommodate the lower -income RHNA are likely to integrate with new residential uses, or are likely to be discontinued during the planning period and therefore do not constitute an impediment to planned residential development on the site during the planning period.

3. As required by Government Code Section 65585(e), the City of Santa Maria has considered the findings made by the Department of Housing and Community Development included in the Department's letter to the City of Santa Maria dated May 3, 2023, consistent with Government Code Section 65585(f), the City has revised the 2023 Draft Housing Element in response to the findings of the Department to substantially comply with the requirements of State Housing Element Law as interpreted by HCD.

4. The City of Santa Maria has considered the findings made by the Department of Housing and Community Development included in the Department's letter to the City of Santa Maria dated October 25, 2023, (provided as Attachment B to the City Council Agenda Report, and incorporated herein by reference), that the revised draft of the Housing Element will substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq.) at such time it is adopted by the City Council, and then submitted to and approved by HCD, in accordance with Government Code section 65585.

5. That the City Council hereby repeals the City of Santa Maria 2015-2023 Housing Element in its entirety and adopts the City of Santa Maria Sixth Cycle Housing Element 2023-2031, as shown in Attachment A to the City Council Staff Report, dated December 5, 2023, and incorporated herein by reference.

6. The Community Development Director or designee is hereby directed to file all necessary material with the Department of Housing and Community Development for the Department to find that the Housing Element is in conformance with State Housing Element Law and is further directed and authorized to make all non -substantive changes to the Housing Element to make it internally consistent or to address any non -substantive changes or amendments requested by the Department to achieve certification.

7. The Community Development Director or designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 5th day of December 2023.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director
Interim City Manager

W
No vember 2023
U
IJ

ATTACH MENT A
P1
AIM

This page is intentionally blank

Contents
Contents 1
Section I Introduction 2
I.A Community Context 2
I.B Housing Element Purpose 2
I.0 Organization of the Housing Element 3
I.D Data Sources and Methods 5
I.E Summary of Public Participation 5
I.F Consistency with Other General Plan Elements 15
I.G Other Statutory Requirements 16
Section II Projected Housing Need 17
II.A Introduction/Overview of SBCAG Methodology 17
II.B Santa Barbara County Income Limits 17
II.0 Regional Housing Needs Allocation 18
Section III Housing Resources 19
III.A Introduction 19
III.B Land Resources 19
III.0 Financial and Administrative Resources 20
III.D Opportunities for Energy Conservation 20
Section IV Housing Plan 21
IV.A Introduction 21
IV.B Goals, Policies, and Programs 21
IV.0 Quantified Objectives 45
Appendix A: Housing Needs Assessment
Appendix B: Sites Inventory and Methodology
Appendix C: Housing Constraints
Appendix D: Existing Programs Review
Appendix E: Public Participation Summaries
Appendix F: Affirmatively Furthering Fair Housing Assessment Appendix G: Housing Resources
11 City of Santa Maria 2023-2031 Housing Element

Section 1 Introduction
I.A Community Context
The City of Santa Maria is located in the central coast area of California in the northern portion of Santa Barbara County, roughly 250 miles south of San Francisco and 170 miles north of Los Angeles. The City lies within the Santa Maria River Valley, surrounded by rolling hills on three sides and the Pacific Ocean to the west. Santa Maria was incorporated as a general law city in 1905, with an economy flourishing from rich alluvial soil for agriculture and numerous oil fields.

Both the agriculture and oil industries contributed to the City's population growth throughout the 20th century, and the area retains a significant agriculture industry today. Crops such as strawberries, wine grapes, celery, lettuce, peas, squash, cauliflower, spinach, broccoli, and beans are grown in Santa Maria and numerous cattle ranches are also located in the area.

The City became a charter city in December 2000, after Santa Maria voters approved a ballot measure. In recent decades, Santa Maria's population has continued to grow steadily by offering job opportunities and affordable housing; in 2006 Santa Maria surpassed Santa Barbara as the most populous city in Santa Barbara County. Today, there are almost 110,000 residents and over 38,000 jobs in Santa Maria.

I.B Housing Element Purpose
The State of California has declared that the availability of decent and suitable housing for every California family is "a priority of the highest order" (California Government Code §54220). This objective has become increasingly urgent in recent years as communities across the State, including Santa Maria, struggle to meet the housing needs of all their residents. State Housing Element Law, established in 1969, recognizes the vital role local governments play in the supply and affordability of housing and requires all cities and counties in California to establish a long- range plan to meet their fair share of regional housing needs. Cities are charged with planning for the welfare of their citizens, including ensuring that the existing and projected demands for housing are adequately met.

High housing costs — and related housing instability issues — increase health care costs (for individuals and the State), decrease educational outcomes (affecting individuals, as well as the State's productivity), and make it difficult for California businesses to attract and retain employees.
— State of California 2025 Statewide Housing Assessment 2023-2031 Housing Element City of Santa Maria 12

The housing element is the primary tool used by local governments to appropriately plan for and accommodate sufficient housing across all income levels. The housing element is a mandatory part of a jurisdiction's General Plan but differs from other General Plan elements in two key aspects. The housing element must be updated every eight years for jurisdictions within a metropolitan planning organization (MPO) on a four-year regional transportation plan (RTP) cycle, such as the Santa Barbara County Association of Governments (SBCAG). The housing element must also be reviewed and approved (i.e., certified) by the California Department of Housing and Community Development (HCD) to ensure compliance with statutory requirements. Certification also ensures that the City remains eligible for various State and federal funding sources. This Housing Element covers the 2023-2031 planning period.

In practical terms, the Housing Element provides the City with an opportunity to assess its housing needs and to develop policies and actions that effectively respond to those needs. Amongst other groups, the Housing Element affects those starting in their carriers whether it be as an employe in a local business or in a civic role such as teacher, firefighter, police, or medical field, older residents on fixed incomes, parents and their adult children who want to remain in or return to Santa Maria, and young persons wishing to live in the community. Ultimately, the supply and cost of housing affect the economy and people's quality of life across the region.

At the time of publication, the COVID-19 crisis has impacted the local region in significant ways.

The pandemic has made the issue of housing security even more acute as residents face job losses, housing cost pressures, and disparate health impacts from the pandemic. This Housing Element has had to respond to these conditions by transitioning the public outreach process to reflect the limitations brought on by COVID-19. These actions are detailed in this report.

I.0 Organization of the Housing Element
Per California Government Code §65580-65589, a housing element must consist of the following components:
• Existing Programs Review: An evaluation of the results of the goals, policies, and programs adopted in the previous Housing Element that compares projected outcomes with actual achieved results. • Housing Needs Assessment: An analysis of the existing and projected housing needs of the community. It provides a profile of socio-demographic information, such as population characteristics, household information, housing stock, tenure, and housing affordability. The assessment also considers local special housing needs, such as seniors, farmworkers, homeless, large households, and female -headed households. • Sites inventory and Methodology: An inventory listing adequate sites that are suitably zoned and available within the planning period to meet the City's fair share of regional housing needs across all income levels. 31 City of Santa Maria
2023-2031 Housing Element

• Housing Resources: An identification of resources to support the development, preservation, and rehabilitation of housing. • Housing Constraints: An assessment of impediments to housing production across all income levels covering both governmental (e.g., zoning, fees, etc.) and nongovernmental (e.g., market, environmental, etc.).
• Affirmatively Furthering Fair Housing Assessment: Assembly Bill (AB) 686 requires cities and counties to take deliberate actions to foster inclusive communities, advance fair and equal housing choice, and address racial and economic disparities through local policies and programs. The goal of AB 686 is to achieve better economic and health outcomes for all Californians through equitable housing policies. The assessment of affirmatively furthering fair housing documents compliance with AB 686. • Goals, Policies, and Programs: This Section provides a statement of the community's goals, quantified objectives, and policies to maintain, preserve, improve, and develop housing, as well as a schedule of implementable actions to be taken during the planning period to achieve the goals, objectives, and policies. Quantified objectives for new construction, rehabilitation, and conserved units by income category (i.e., very low, low, moderate, and above moderate) are included to make sure that both the existing and the projected housing needs are met, consistent with the City's share of the Regional Housing Needs Allocation (RHNA).

V —
Section II of the Housing Element provides a summary of the projected housing needs. Section I II summarizes the adequacy of housing sites and housing resources with references to relevant appendices. Section IV contains goals, policies, and actions related to housing in Santa Maria.

The comprehensive research and analysis compiled in the appendices to this Housing Element were used to inform the City's goals, policies, and programs presented in Section IV:
• Appendix A: Housing Needs Assessment
• Appendix B: Sites Inventory and Methodology
• Appendix C: Housing Constraints
• Appendix D: Existing Programs Review
• Appendix E: Public Participation Summaries
• Appendix F: Affirmatively Furthering Fair Housing Assessment • Appendix G: Housing Resources
2023-2031 Housing Element City of Santa Maria 14

D.D Data Sources and Methods
This Housing Element was updated in accordance with California Department of Housing and Community Development (HCD) guidelines for the 6th Housing Element Cycle, incorporating additional considerations required under new State housing -related legislation. Specific documents are referenced throughout the Housing Element, including but not limited to the Santa Maria General Plan and Santa Maria Municipal Code. The analyses and findings in this document relied on data compiled from various sources, including:
• US Census Bureau (American Community Survey, Longitudinal Employer -Household Dynamics)
• California Department of Housing and Community Development (HCD) • California Department of Finance (DOF)
• US Department of Housing and Urban Development (HUD)
• Consumer Financial Protection Bureau (CFPB)
This document was also informed by information provided by residents, business groups, local institutions, City staff, and elected officials.

I.E Summary of Public Participation
Public participation is crucial in shaping Santa Maria' housing strategy. Understanding the needs of the community enables the development of housing strategies that are most appropriate and effective. Public outreach also allows the City to identify concerns unique to certain interest groups and service providers that may not have been initially apparent. The City also has the added benefit of outreach conducted for Santa Maria's General Plan Update, which is currently underway and is expected to be completed in 2025. The General Plan Update process includes an outreach program designed to engage and facilitate conversations with community members about the current and future issues and opportunities that are most important to them for the City of Santa Maria in the next 20 to 30 years.

The engagement objectives include obtaining feedback on key policy issues including those regarding Housing, and providing a variety of options for community members to engage and be informed, and to create opportunities for the community to take ownership of the General Plan and steps to achieve its implementation. As part of the development of this Housing Element, the City's public participation program included public hearings with the City Council and Planning Commission, direct outreach to representatives from all economic segments of the community, and community -wide notifications through various communication outlets (e.g., news releases, email, City website, etc.).
51 City of Santa Maria 2023-2031 Housing Element

Housing Element Informational Outreach Efforts
• General Plan Update Website. The City provides General Plan Update information on the City Webpage( http://www.cityofsantamaria.orq/GeneralPlan) including a link to the General Plan Update website which includes basic information about the project, documents, announcements, and other materials (in English and Spanish). The site includes links to interactive components, like comment boxes and surveys. The website has been updated frequently throughout the General Plan and Housing Element process. ( https://www.imaginesantamaria.com/)
• General Plan Update Fact Sheet. City staff created a General Plan Update Fact Sheet that defines the purpose of the project, describes project timelines, provides information about demographics in the city, identifies ways the public can get involved, and provides information on the City's decision -making process. The fact sheet is provided in English and Spanish.
• Housing Element Update 2023 Website. The City's Housing Element Update 2023 website describes the basics of Housing Elements, the components required by State law, the City's Regional Housing Needs Allocation (RHNA), list of past and future workshops and meetings, a link to the existing Certified Housing Element, and a link to join the mailing list. ( https://www.cityofsantamaria.org/services/departments/general-plan-update- 2040/housing-element-update-2023)
• First Housing Element News Release. On February 28, 2022 the City issued the first News Release announcing the availability of the Housing Element Survey in English and Spanish. The release was posted on the City website and sent via e-mail to those who signed up for General Plan Update information and alerts. A link to the News Release was also provided through the City of Santa Maria Chamber of Commerce monthly newsletter. • City Staff Resource. City staff were also available via direct contact (e.g., email, phone, in person by appointment consistent with COVID-19 protocols) to provide information and respond to questions regarding the General Plan and Housing Element Update. • Technical Advisory Committee (TAC). The City created a Technical Advisory Committee (TAC) to provide feedback and guidance to the City informing the development of a General Plan vision, policies, and implementing actions. The City invited a diverse group of community members and stakeholders to ensure the final General Plan would reflect the community's vision for Santa Maria's future, including housing. The City has hosted a total of eleven (11) meetings with the TAC. On February 22, 2022, a meeting with the TAC was held to focus on the Housing Element Update.
2023-2031 Housing Element City of Santa Maria 16

Public Outreach Events
The City of Santa Maria is currently completing a Comprehensive General Plan Update and conducted numerous outreach meetings to date regarding housing in Santa Maria. In 2022, the City conducted a series of public outreach events to solicit input on the Housing Element Update.

The meetings included a discussion of the purpose of a Housing Element, the required content, the concept of the Regional Housing Needs Allocation, and the HCD review and adoption process.

Due to the ongoing COVID-19 crisis, these public outreach events were held virtually, or in a hybrid format with virtual and in -person (with social distancing and masks required). Notifications of public outreach events were distributed to the City's email database as well as information and updates provided through the City's Housing Element Update webpage, direct outreach to stakeholders and organizations that provide housing and related support services in the community, news releases, and social media. The City was available to provide translation and interpretation services at all events upon request.

The following is a summary of the public outreach events to solicit input on the Housing Element:
• General Plan Update Roadshow. The City outreach efforts began in 2019 when the City Community Development Department conducted a "General Plan Update Roadshow", to notify the community of the General Plan Update effort and how to participate in the process. Preliminary surveys were conducted, with some questions focused on the need to increase both rental and affordable housing in the City. • Stakeholder Interviews. On January 24th and 25th, 2020, the City and the General Plan update consulting team (Raimi + Associates, SERA Architects, Lisa Wise Consulting, and GHD) conducted 17 stakeholder interviews with Santa Maria industry leaders and community -based organizations. The purpose of the interviews was to provide the Team with background information and various perspectives on issues and opportunities in the Santa Maria, including topics of the City's Unique and Special Attributes, Opportunities to Enhance and Change the City, Barriers to Change, and suggestions for Engagement and Outreach. Members of the following organizations were interviewed:

Babe Farms; Bethel Lutheran Church; Bici Centro; CalPortland Trucking; CAUSE; Certified Freight Logistics; City of Santa Maria Commercial real estate industry; Disability Community; Halsell Builders; Home Builders Association; Housing Authority of the County of Santa Barbara; Interfaith Community; McCarty Davis Commercial Real Estate; Santa Barbara County Association of Governments; Planning Commission; Santa Maria Airport; Santa Maria Area Transit; Santa Maria -Bonita School District; and Urban Planning Concepts.

Some of the comments coming out of the Stakeholder interviews, specifically related to housing included that the City is one of the most affordable places in Santa Barbara County, while a suggested change for the City is to increase the availability and quality of housing for residents across all income levels.
71 City of Santa Maria 2023-2031 Housing Element

• Qualities and Changes Survey. As one of its first community outreach activities, the City conducted a written online Qualities and Changes Survey, available in both Spanish and English from July to September 2020. The purpose of this survey was to identify qualities to preserve and issues to address through the General Plan Update process. A link to the survey was available on the General Plan Update website, ImagineSantaMaria.com. The survey was publicized in utility bill mailers sent in July 2020, two media releases from the City of Santa Maria, and social media and/or other media releases (such as newsletters) from the City of Santa Maria, the Santa Maria Valley Chamber of Commerce, the Santa Maria Public Library, the Santa Maria -Bonita School District, and the Santa Maria Joint Union High School District.

The organization CAUSE (Central Coast Alliance United for a Sustainable Economy) encouraged its constituents to participate in the survey and hosted events where they could provide technical support to constituents taking the survey. Members of the General Plan Technical Advisory Committee (TAC) were encouraged to spread word of the survey through their networks of contacts. The results of the survey included that most respondents (64%) rated their experience of Santa Maria as excellent or good and that ensuring access to quality affordable housing across all income levels (71%) was important for the future of Santa Maria.
• Visioning Workshops. Two visioning workshops held on November 11, 2020 and December 3, 2020 (The December 3, 2020 workshop was held in Spanish). Due to the Covid-19 pandemic, the workshops were held as online Webinars using the Zoom videoconferencing platform. Community members expressed their views and observations of the City. The discussion was broken down into five segments; four to focus on the issues and observations regarding each of the four quadrants of the City, and the fifth segment to brainstorm 'Big Ideas' for the City as a whole. "Enhance housing quality, affordability and choice' was identified as the highest priority item to address for both the English and Spanish speakers participating in the visioning workshops. Detailed information regarding this outreach and its results are presented in the `Vision, Guiding Principles, and Areas of Change and Stability' document approved by the City Council on April 6, 2021.
• Housing Community Cafe. A Housing Cafe was held on March 26, 2021, as a part of the extensive community engagement effort for the City of Santa Maria's General Plan Update (GPU) process. Four total Cafes were held during February and March of 2021 on the following topics: Environmental Justice, Farmworker Community, Community Safety, and Housing. The Cafes were designed to broadly engage in identification of health issues and priorities as well as to refine existing conditions findings across the following topic areas, as required by SB 1000: Housing, Public Facilities, Pollution Exposures, Food Access, Physical Activity and Health.
2023-2031 Housing Element City of Santa Maria 18

There were 25 participants in the housing Cafe. Participants were community members and farmworkers that live in the City of Santa Maria. All participants spoke Mixteco and the Cafe was held in Spanish with Mixteco interpretation so participants could participate in their language of choice. The Cafe was led by Raimi + Associates with facilitation and interpretation support from the Mixteco Indigenous Community Organizing Project (MICOP), a community organization working with residents and stakeholders from disadvantaged communities, including monolingual Mixteco farmworkers and their families. MICOP is a partner of the City of Santa Maria in the General Plan Update, ensuring that traditionally underrepresented groups, such as Mixteco residents, are proactively sought for input in shaping the future of Santa Maria. The following questions were used as discussion prompts:
o What housing topics are most important to you?
o What recommendations do you have for the City to address issues related to housing?
o Is there anything else you would like to share?
Affordability, quality of housing, and health are all connected. Participants shared their stories regarding different issues related to housing and the following topics were recurring throughout the discussion:
o Many people living in one housing unit
o High costs regardless of quality
o Old housing structures
o Low supply of affordable housing
o Code Violations
o Lack of housing for resident (non -visiting) agricultural workers o Landlords are not fixing housing issues and when they do, rent goes up o Language barriers between tenants and landlords or managers o Tenants are paying for repairs of housing structure issues o Application fees are very high
• CDBG Community Needs Workshop. As part of the CDBG funding process, City staff conducted a Community Needs Workshop on Monday, July 26, 2021. Due to the COVID- 19 pandemic, the meeting was conducted via a Microsoft Teams videoconference platform.

The meeting was designed to obtain information from residents and nonprofit agencies on the unmet needs in the community, including housing needs. There were 12 participants present at the needs workshop, many of whom spoke before the committee, expressing their thoughts on the unmet needs in the community. They provided feedback on the increased need to fund programs and projects that assist the homeless, youth, seniors, and those suffering from abuse and/or trauma. An increased need for affordable housing was an issue brought up by several speakers.
91 City of Santa Maria 2023-2031 Housing Element

• City of Santa Maria Downtown Friday Events. On summer Friday evenings, visitors and residents can come to Town Center West in the City's Downtown and listen to live music, enjoy a meal from food trucks and booths, and purchase goods from commercial vendors, and visit informational booths. The Community Development Department provided information on the General Plan Update, and the Housing Element Update at two Downtown Friday Events: August 27, 2021, and July 15, 2022. City staff were available to answer questions and provide information regarding the General Plan and Housing Element update efforts. In addition, the Housing Survey (in written form and in both English and Spanish — Survey is described in a following section), was available for interested participants at the 2022 event.
• Housing Survey. The City conducted an on-line survey in English and Spanish asking for the community's input regarding housing within the City of Santa Maria. The survey was available between February and August 2022 and was taken by 457 respondents (111 of which responded using the Spanish language survey). Links to this survey were posted on the City's Home page and the Housing Element Update webpage. The Survey was announced via a Public Service Announcement video (English and Spanish language) posted on the City's website and YouTube site. When asked to choose the main housing challenges in Santa Maria, the three most frequently selected responses were lack of affordable housing options, overcrowding, and housing that doesn't meet community's needs. The fourth most selected response was unsafe or unhealthy housing conditions.

When asked to rate the difficulty to find affordable rental housing in Santa Maria, the most frequently selected response in both the English and Spanish surveys was Very Difficult, the most negative of the available survey responses. Very Difficult was also the most selected response to the difficulty in finding affordable ownership housing. In response to the question regarding which special needs groups are most in need of housing and/or related services the English surveys selected First Time Homebuyers, followed by Seniors, while the Spanish survey responses chose Farmworkers followed by a three-way tie of Female -Headed Households, Large Households, and First Time Homebuyers.

Both English and Spanish surveys identified the high cost of ownership, lack of housing affordable for young people or for service workers, teachers, first responders, and other workers, and the lack of variety of affordable housing types, including appropriately sized housing for larger families, as important housing issues for the City. When asked which types of housing is needed in the City, Single Family Detached housing was selected as being most important in both the English and Spanish survey responses. Next most important was Ownership Housing in the English responses, and Dedicated Affordable Housing in the Spanish Language responses.
• Planning Commission and City Council Public Meetings. The Housing Element Update was presented to the Planning Commission at a study session on March 3, 2022. The goal of this outreach meeting was to inform the Planning Commission and public of the purpose 2023-2031 Housing Element City of Santa Maria 1 10

and update process for the Housing Element, providing an overview of the City's demographics and housing needs, and to offer the Commission and the public an opportunity to provide input early in the process.

The Housing Element Update was presented to the City Council as an Informational Report/Briefing on April 5, 2022. Like the Planning Commission study session, the goal of this meeting was to provide a high-level overview of the purpose of the Housing Element, the update process, and the technical analysis that would be used to support the development of the City's housing goals, policies, and programs together with receiving additional public input early in the process.

Affirmatively Furthering Fair Housing Targeted Outreach In addition to the previously listed outreach efforts, the City conducted targeted outreach to solicit input on the affirmatively furthering fair housing (AFFH) analysis (Appendix F). The goal of the outreach was to target those disproportionately impacted by fair housing issues, both by household type as well as by area/neighborhood. The following list of contacts representing various non-profit organizations and economic segments and neighborhoods of the community was developed:
• Santa Maria Valley Chamber of Commerce
• Mixteco/Indigena Community Organizing Project (MICOP) • Santa Maria Bonita School District
• Food & Water Watch
• Urban Planning Concepts
• Growers and Shippers Association
• Strategic Vitality LLC
• CAUSE (Central Coast Alliance United for a Sustainable Economy) • Santa Barbara Bicycle Coalition
• Santa Maria Joint Union High School District
• Santa Maria Public Airport District
• Home Builder's Association
• Future Leaders of America
• Marian Regional Medical Center/ Dignity Health
• Allan Hancock College
• People's Self Help Housing
• Salvation Army (Santa Maria)
• Good Samaritan Shelter
• Community Health Centers (CHC)
• Fight Back Santa Maria
11 1 City of Santa Maria 2023-2031 Housing Element

Some of these groups were also notified of the previously conducted public outreach meetings, and may have also been participants in the Technical Advisory Committee. This more expansive list was created to broaden the public engagement effort and reach all communities and populations within the city. These groups were directly contacted via email and/or telephone based on the contact information the City had on file. These organizations are located across the city. Some of these organizations such as MICOP and CAUSE directly work with residents and stakeholders from disadvantaged communities, including monolingual Mixteco farmworkers and their families. MICOP is a partner of the City of Santa Maria in the General Plan Update, ensuring that traditionally underrepresented groups, such as Mixteco residents, are proactively sought for input in shaping the future of Santa Maria.

In addition to the groups listed above, notice of the Fall 2022 AFFH Workshops was also sent via e-mail to the General Plan Update mailing list (over 470 contacts) and the Community Programs Division newsletter e-mail list (over 430 subscribers). The notice was placed as a News Release on the City's main web page and included in the City's Housing Element Update page in both English and Spanish.

Four public workshops specifically targeted to AFFH were held at various locations throughout the city that are disproportionally impacted by fair housing issues (e.g., higher concentrations of lower to moderate income households, overcrowding, and vulnerable to displacement). See AFFH Analysis, Appendix F. A summary of the workshops is included below:
• October 27, 2022. Maramonte Park Community Center, 620 East Sunrise Drive, 3:30 p.m. to 5:00 p.m.
• October 28, 2022. Grogan Community Center, 1155 West Rancho Verde, 3:00 p.m. to 4:30 p.m.
• November 3, 2022. Santa Maria Public Library, Shepard Hall, 421 S. McClelland Street, 3:00 to 4:30 p.m.
• November 7, 2022. Santa Maria Public Library, Shepard Hall, 421 S. McClelland Street; 5:30 p.m. to 7:00 p.m.

In total, approximately 150 people attended the workshops, with an additional ten attendees over Zoom available for the November 7th workshop. Translation and interpretation services were provided at each workshop when requested. The translation and interpretation services requested included Spanish and Mixteco.

Public Input Comments
During the Housing Element Update process, the City received both oral and written comments during the presentations and outreach efforts, and in response to invitations to comment, including during the public review period for the draft Housing Element document. Comments were also provided prior to drafting the technical analysis to support development of the Housing Element.

Comments received are summarized below with more detailed reporting of comments presented in Appendix E.
2023-2031 Housing Element City of Santa Maria 1 12

The interconnectivity of affordability, quality of housing, and health was clear from the comments made at the Housing Cafe held on March 26, 2021. Participants shared their stories regarding different issues related to housing and the following topics were recurring throughout the discussion:
• Many people living in one housing unit
• High costs regardless of quality
• Old housing structures
• Low supply of affordable housing
• Code Violations
• Lack of housing for resident (non -visiting) agricultural workers • Landlords are not fixing housing issues and when they do, rent goes up • Language barriers between tenants and landlords or managers • Tenants are paying for repairs of housing structure issues • Very high prospective tenant application fees
The comments received during the AFFH outreach focused on a few primary concerns: Housing affordability, overcrowding and the associated need for more housing units, tenants' rights and displacement, and housing conditions. In each of the workshops, the attendees indicated it was very difficult to find affordable housing, either for rent or for purchase. Many attendees indicated their opinion that the northwest area of the City held the City's `poor' neighborhoods. In related comments this same area was identified as having more overcrowding issues due to the households being less economically advantaged, leading to multiple families/generations living together in a single home. Attendees also expressed concern about tenants having month to month arrangements, with unfair increases in rent occurring monthly and issues with landlords not fixing housing issues.

Affordability of housing in Santa Maria was frequently brought up, with the majority stating that there is a lack of affordable housing in the city and a need to build more housing that is affordable for working families.

The topics of housing affordability and the lack of housing options were also reflected in the housing survey that was completed from February to August, 2022. When asked to choose the main housing challenges in Santa Maria, the three most frequently selected responses in the survey were lack of affordable housing options, overcrowding, and housing that doesn't meet community's needs. The fourth most selected response was unsafe or unhealthy housing conditions.
13 1 City of Santa Maria 2023-2031 Housing Element

Integration of Comments into the Housing Element
The housing topics, concerns and issues brought up during public outreach and during the public review of the draft Housing Element have been incorporated in the Housing Element, specifically through the Housing Needs Assessment (Appendix A), the Sites Inventory and Methodology (Appendix B), and through the housing programs.
• The housing needs assessment (Appendix A) analyzes the current housing stock and the City's demographics to provide context for developing new housing policy, such as which types of housing are most needed. Some conclusions from this analysis are that Santa Maria Households are larger, are more likely to experience overcrowding, with incomes generally lower as compared to other households in the county. Likewise, compared to Santa Barbara County, home values and rents are generally less expensive in Santa Maria.
• The housing constraints appendix (Appendix C) analyzes potential impediments to the production of various types of housing. Based on this analysis multiple programs have been included to address constraints to the production of housing and encourage a variety of housing types, such as programs to incentivize the production of affordable housing, to analyze residential parking requirements, and to seek additional funding sources for infrastructure improvements. Another program resulting from this analysis is to edit the City Ordinance to clarify that the City allows emergency shelters, transitional and supportive housing, and low barrier navigation centers consistent with state law. • The housing sites inventory analysis considered various factors in site selection including that the site is vacant or very underutilized, has available infrastructure, that the parcel is not subject to a Mills Act contract (i.e., historic property), or has other limitations that would constrain the future housing development. The analysis of 'underutilized' sites has confirmed their viability for housing development based on the age and/or condition of the existing structure, high demand for housing, and recent development trends. • The goals of Program 1.A: Incentives and Funding for Affordable Housing, Program 1.B:

Density Bonus, Program 1.E: Prioritization of Services, Program 1.J: Infrastructure Funding Opportunities, and Program 3.E: Parking Standards, are intended to incentivize the production of housing with the goal of producing more units and units which are more affordable.
• To encourage the development of more types of housing, the Element includes Program

1.0 Mixed -use Development, Program 1.G: Manufactured Homes, Program 1.H: Housing on Religious Institution Sites, Program 1.1: Surplus Land Act Sites, Program 3.F: R-3 and R-3 Zoning District Densities.
• Projected ADUs are included in the RHNA capacity analysis, and through Program 1.D:

Accessory Dwelling Units the City will monitor ADU production to ensure targets are met.

Part of that effort will be to conduct annual ADU rental income surveys and report the results with the City's General Plan Annual Reporting. This program will also increase the number of housing units, and the diversity of housing types available within the community.
2023-2031 Housing Element City of Santa Maria 1 14

• Preservation of the existing housing stock and maintaining safe housing is addressed through Programs 2.A: Minor Home Repair Program, Program 2.B: Code Enforcement Program, Program 2.C: Energy Compliance and Conservation, Program 2.D: At -Risk Affordable Housing, and Program 5.H: Condominium Conversions. • While many of the programs will likely have a positive effect on the production of housing, Program 3.F: R-2 and R-3 Zoning District Densities, will directly increase housing production by increasing the maximum multi -family residential densities above what is currently permitted. Program 1.H: Housing on Religious Institution Sites, and Program

1.F: Annexation Program also have the potential to increase housing production. • Although not specifically mentioned as a housing issue through the public outreach efforts, the City's processing of discretionary and ministerial housing permits is a component in the delivery of new housing units. Under Goal 3, the City has incorporated programs to ensure housing permitting is efficient, including Program 3.A: Residential Permit Process Monitoring and Improvements, Program 3.B: Objective Design Standards, Program 3.C:

Conditional Use Permits and Program 3.D: SB 35 Process. • Goal 4 of the element is to address housing for special needs groups. There are seven programs, which address housing needs for seniors and persons with disabilities (Program 4.A) homeless persons (Program 4.B), employee housing (Program 4.E). Goal 4 programs also address shelters and navigation centers, transitional and supportive housing, home day care, and residential care facilities (Programs 4.C, 4.D, and 4.F). • The City has included programs to support the needs of extremely low-income households are included, such as supporting accommodation for seniors and persons with disabilities (Program 4.A), supporting the development and preservation of housing for unhoused individuals and support services to the homeless (Program 4.B: Supportive Housing for Homeless Persons) and adding clarity regarding that the City considers transitional and supportive housing a residential use of property (Program 4.D: Zoning for Transitional and Supportive Housing).
• Specific to housing affordability are the Program 5.A: The HomebuyerAssistance Program

5.B: Tenant -Based Assistance, and Program 5.C: Rental Assistance. • Tenants' rights/displacement concerns are addressed through Program 5.D: Fair Housing Program, Program 5.E: Tenants Rights Information, Program 5.F: Capital Improvements in Low -Income Areas, Program 5.F: Environmental Issues Identification and Action, and Program 5.G: Environmental Justice.

1.F Consistency with Other General Plan Elements
The Housing Element is one of the seven elements of the City's General Plan, a long-range vision document that provides guidance for future development in Santa Maria. Although the Housing Element is the primary source of information on housing policies, programs and resources, other General Plan documents also address or affect housing. By law, new development projects must be consistent with all elements of the General Plan, and the General Plan must be "internally consistent" as a whole.
15 1 City of Santa Maria 2023-2031 Housing Element

The City is in the process of completing a comprehensive update to its General Plan, which is scheduled to be reviewed and adopted in early 2025. The 6' Cycle Housing Element builds upon the existing General Plan and is consistent with its goals and policies, and has also benefitted from the extensive community engagement, existing conditions reports, and more completed as part of the General Plan update process.

To meet the City's RHNA of 5,418 new units of over the next eight years and to affirmatively further fair housing, the Housing Element includes programs to amend adopted development standards and policies in the Zoning Ordinance. Through the comprehensive General Plan update, the other elements will be aligned with the 61h Cycle Housing Element to ensure consistency. In addition, the City will review for and confirm internal consistency as part of its annual General Plan Implementation Report required under Government Code §65400.

I.G Other Statutory Requirements
Water and Sewer Priority
Government Code §65589.7 requires each public agency or private entity providing water or sewer services to grant a priority for the provision of these services to proposed developments that include lower -income housing units. The City of Santa Maria operates its own municipal water system, including wastewater collection and treatment, which serves the majority of the City, with only a small southern portion of the City served by the Golden State Water Company. As part of the previous Housing Element Update, the City adopted written policies and procedures that grant a priority for sewer hook-ups and service to developments that help meet Santa Maria's share of the regional need for lower -income housing (Resolution 2006-155), which will continue as Program 1.E. in this Element. The City will also pursue additional funding sources to supplement funding of Public Improvement Plan infrastructure projects (Program 1.J).

Government Code §65589.7 also requires adopted housing elements to be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential. The City will provide the future adopted housing element to the Golden State Water Company immediately upon adoption. 2023-2031 Housing Element City of Santa Maria 1 16

Section 11 Projected Housing Need
ILA Introduction/Overview of SBCAG Methodology
State Housing Element law (Government Code §65580 et. seq.) requires regional councils of governments to identify for each member jurisdiction its "fair share allocation" of the Regional Housing Needs Assessment provided by the California Department of Housing and Community Development (HCD). In turn, each city and county must demonstrate the capacity to accommodate their local share of regional housing needs in the community's housing element.

Each jurisdiction's responsibility for meeting the overall regional housing need is established as a Regional Housing Needs Allocation (RHNA).

The Santa Barbara County Association of Governments (SBCAG), the council of governments for the Santa Maria area, adopted its final 6th Cycle RHNA allocation methodology in March 2021.

SBCAG considered several factors in preparing the methodology, which weighed both projected and existing need. Projected need was informed by the target vacancy rate, the rate of overcrowding, the share of cost -burdened households, forecasted household growth, forecasted job growth, and existing jobs. The distribution of the RHNA across the four income categories factored in a social equity adjustment, which allocated a lower proportion of lower -income RHNA to jurisdictions that already had a high concentration of such households in comparison to the County, as well as the goal to Affirmatively Further Fair Housing (AFFH), which adjusted the distribution of RHNA in jurisdictions considered either very low or very high resource areas.

II.B Santa Barbara County Income Limits
The projected housing needs are broken down by income category based on definitions in the California Health and Safety Code (§50079.5). HCD calculates "acutely low", "extremely low", "very low", "low", "median", "moderate", and "above moderate" income limits, and publishes these limits at the county level. Santa Barbara County's 2021 income limits for households of one to four persons are shown in Table 11-1. See Appendix A, Table A-9, for a table listing income limits for households of up to eight persons.

Table 11-1: Santa Barbara County 2021 Income Limits
Number of Persons in Household Ail

2 3
4 Acutely Low (0-15% of AMI)'
$9,450
$10,800
$12,150
$13,500
Extremely Low (15-30% of AMI)
$26,250
S30,000
$33,750
$37,450
Very Low (30-50% of AMI)
$43,750
S50,000
$56,250
$62,450
Low (50-80% of AMI)
S70.050
S80,050
$90.050
$100,050
Median (80-120% of AMI)
S63.050
S72,100
$81.100
S90,100
Moderate (120% of AMI)
S75,650
S86,500
$97,300
$108,100
"Acutely Low" income category effective January 1. 2022.

Source: Department of Housing and Community Development. 2021 17 1 City of Santa Maria
2023-2031 Housing Element

II.0 Regional Housing Needs Allocation
The RHNA for Santa Maria and the total RHNA for the Santa Barbara County region is shown in Table 11-2. The City has a total allocation of 5,418 units for the 2023 to 2031 planning period.

Table 11-2: 6th Cycle RHNA
Santa
Maria
Santa Barbara
County
Income
Number of Units
Percent
Number of Units
Percent
Total
5,418
100.0%
24,856
100.0%
Extremely Low and Very Low'
1,032

19.0%
5,799

23.3%
Low
536

9.9%
3,935

15.8%
Moderate
731

13.5%
4,397

17.7%
Above Moderate
3,119

57.6%
10,725

43.1%
' "Extremely Low" included in "Very Low" Category. assumed to be 50% of the Very Low allocation.

Source: SBCAG, LWC
The City is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build unit types reflected in the RHNA. This includes the creation, adoption, and implementation of General Plan policies, zoning standards, and/or economic incentives to encourage the construction of various types of units, and documentation that sufficient numbers of properly zoned sites are available to accommodate the residential development specified in the RHNA 2023-2031 Housing Element City of Santa Maria 1 18

Section 111 Housing Resources
III.A Introduction
There are a variety of resources available to support the City in implementation of its housing strategy, landowners and developers seeking to provide affordable housing, and residents in need of housing assistance in Santa Maria. This Section provides a summary of land resources available to accommodate future housing in Santa Maria. The detailed housing capacity analysis and methodology is contained in Appendix B. This Section also references local, regional, State, and federal programs that provide financial and related assistance to support the City in meeting its housing goals.

III.B Land Resources
A critical part of the Housing Element is the sites inventory, which identifies a list of sites that are suitable for future residential development. State law mandates that each jurisdiction ensure availability of an adequate number of sites that have appropriate zoning, development standards, and infrastructure capacity to meet its fair share of regional housing need (RHNA) at all income levels. The inventory is a tool that assists in determining if the jurisdiction has enough land to meet its RHNA given its current regulatory framework.

Identification of Sites Suitable for Housing
The sites identified in the site inventory (Appendix B) are comprised of parcels located in various areas and zones within the City.

Each site has undergone an assessment to determine development potential and residential unit capacity given existing zoning standards, potential capacity, and development trends. For detailed information, please see Appendix B. 1;10-,
Summary of Adequate Sites
Table III -1 summarizes the City's methods for satisfying its RHNA. Based on accessory dwelling unit (ADU) projections, entitled and proposed projects, and available 6'" Cycle sites, the City has enough capacity in all income categories. None of the lower -income sites identified in this inventory are reused from the previous Housing Element site inventories.

Assumptions and methodology for this determination and a detailed list of sites are included in Appendix B.
191 City of Santa Maria 2023-2031 Housing Element

Table III -1: Residential Development Potential and RHNA Extremely
Low
Very Low
Low
Moderate
Above
Moderate
Total
RHNA
See Very Low
1,032
536
731
3,119
5,418
ADUs
See Very Low
-
1,058
303
151
1,512
Approved/Entitled
Projects'
-
447
147

1.379

1.973
Remaining RHNA
See Very Low
32 31
281
1,589
1933
Site Inventory'
See Very
Low/Low
204
330
1,800
2,334
Total
1,709
780
3,330
5,819
Surplus
141
49 211
401
Source: See Appendix 8
'. Net new units
III.0 Financial and Administrative Resources
Appendix G provides a list of financial, administrative, and other resources at the local, regional, state, and federal levels to help the City address its housing needs. Availability of these resources is dependent on governmental priorities, legislation, and continued funding, which may be subject to change at any time.

III.D Opportunities for Energy Conservation
The cost of energy can greatly impact housing affordability, as energy costs can constitute a significant portion of total housing costs. High energy costs also particularly impact low-income households that are less likely to have the ability to cover increased expenses. Please refer to Appendix G to see a list of energy conservation programs available at the local, regional, State, and federal levels.
2023-2031 Housing Element City of Santa Maria 1 20

Section IV Housing Plan
IV.A Introduction
The Housing Plan of the Housing Element serves as the City's strategy for addressing its housing needs. This Section describes the housing goals, policies, v — and programs of the Housing Element for the City of Santa Maria. V/ Goals are aspirational purpose statements that indicate the City's direction and intent on housing -related needs. Each goal encompasses several policies, which are statements that describe the City's preferred course of action among a range of other options.

Each goal also includes programs, which provide actionable steps to implement the City's goals and to further the City's progress towards meeting its housing allocation. Some programs contain quantified objectives, which represent measurable outcomes that can be used to benchmark the success of each program.

This Housing Element contains actions intended to significantly increase the amount and types of housing for all income levels in Santa Maria. These efforts are expected to be initiated throughout the planning period, which is from February 15, 2023, to February 15, 2031. In accordance with State law, the City will also evaluate the progress and effectiveness of Housing Element programs on an annual basis. Together, these actions reflect the City's commitment to increasing affordable housing and improving existing housing conditions.

The following list of goals, policies, and programs includes a combination of strategies, including a continuation of existing successful policies and programs as well as new policies and programs to tackle emerging opportunities and constraints, address changes in State law, and provide innovative approaches to accommodate the larger RHNA.

IV.B Goals, Policies, and Programs
Goal 1: Promote New Housing Construction
Policies:

Policy 1.1: Provide adequate housing sites
The City will offer and encourage incentives that increase housing opportunities to address all housing needs.

Policy 1.2: Encourage infill development
The City will encourage residential development on vacant or underutilized parcels within the City's urbanized areas.
21 1 City of Santa Maria 2023-2031 Housing Element

Policy 1.3: Encourage mixed -use development
The City will encourage mixed -use development in designated zoning districts.

Policy 1.4: Reduce fees on affordable housing developments The City will continue to defer payment of a portion of the fees on projects affordable to lower - income households.

Policy 1.5: Reduce costs from site improvements.

The City will seek to facilitate strategies that reduce long term service and maintenance costs resulting from new development.

Programs:

Program 1.A: Incentives for Affordable Housing
The City strives to facilitate more affordable housing through the reduction of financial barriers for new construction and redevelopment of affordable housing projects. The City will provide incentives for low- and moderate -income housing developments through one or more of the following actions:
• Approval of density bonus and incentive requests.
• Expedited permit processing.
• Applications for State and federal funding on behalf of a nonprofit, under a specific program to construct affordable housing including persons with physical disabilities or developmental disabilities.
• Provision of financial incentives such as reducing or waiving select City fees for 100 percent affordable housing projects.

Additionally, the City will conduct proactive, annual outreach to affordable housing developers (such as People's Self -Help Housing and others with recent local experience) to identify development opportunities.

Responsible Body: Planning Division
Time Frame: Ongoing; meet with affordable housing developers annually, totaling eight meetings during the planning period (i.e., four meetings by 2027).

Objective: The City will provide incentives and/or assistance in securing funding to facilitate the production of 100 units affordable to low and/or moderate -income households by 2031.

Geographic Targeting: Facilitate opportunities for affordable housing capacity throughout the City, especially in neighborhoods identified as "Moderate Resource" (the highest level in Santa Maria) on TCAC Opportunity Score maps (see Appendix F, Figure F-13). 2023-2031 Housing Element City of Santa Maria 1 22

Program 1.B: Density Bonus
Government Code Section 65915 requires that a jurisdiction adopt a local Density Bonus Ordinance consistent with State law. The City's local ordinance is contained in Zoning Ordinance Chapter 12-48. The City will update the ordinance as needed to ensure that its local ordinance remains consistent with State law, but in all cases will continue to apply the most current State law even before local amendments are adopted. The City will also promote the use of the Density Bonus Ordinance through user-friendly materials to increase awareness and use of density bonus provisions by private property owners and developers.

Responsible Body: Planning Division
Time Frame: Update Zoning Ordinance by December 2024. Develop a user-friendly handout on density bonus (December 2024)
Objective: Permit at least 100 new below market rate units through density bonus provisions by 2031 (i.e., 50 new below market rate density bonus units by 2027).

Geographic Targeting: Aim to increase housing opportunities for low- and moderate income households in moderate resource areas that also have larger shares of higher income households (e.g., Appendix F, Figures F-9 and F-13) Program 1.C: Mixed -use Development
The City's Mixed -Use Ordinance (Zoning Ordinance Chapter 12-49) promotes the development of mixed -use projects in certain areas through various measures such as permitting underutilized motel conversions to mixed -use projects, allowing commercial ground floor uses, and granting reduced standards for parking, setbacks, landscaping, open space, or increased height.

Responsible Body: Planning Division
Time Frame: Ongoing
Objective: The City will continue to process mixed -use development requests, as they are initiated from private property owners, in accordance with Chapter 12-49 of the Municipal Code.

Program 1.D: Accessory Dwelling Units
Monitor the production of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) contribution towards affordable housing to ensure production is consistent with Housing Element projections. Also, conduct annual ADU rental income surveys with the General Plan Annual Reporting to document the affordability of ADUs. If it is determined that the affordability of ADUs is not in keeping with the anticipated affordability levels in the Housing Element inventory or that ADU production is not keeping pace with projections, the City will implement additional measures to facilitate the production and affordability of ADUs as one of the projected housing types in the overall production of affordable housing.
23 1 City of Santa Maria 2023-2031 Housing Element

These additional measures will include proactive strategies to incentivize and promote the creation of ADUs, including but not limited to:
• Expanding publicity and public engagement for the ADU programs to reach lower -income and non -English-speaking households;
• Identify groups and community organizations that have contact with and/or are representative of these groups (e.g., social/religious organizations, non-profit groups) and work with these groups to develop outreach materials to explain the City's ADU program and opportunities; and
• Provide technical assistance to lower -income and non -English-speaking households, for example, informing them of the CaIHFA ADU Grant Program that provides up to $25,000 to reimburse homeowners for predevelopment costs necessary to build and occupy an ADU.

Responsible Body: Planning Division
Time Frame: Monitor annually (by April 1 of each year); if ADU and overall affordable housing targets are not being met by February 2025, review and revise efforts to increase construction of ADUs or other housing type(s) with commensurate level of affordability (e.g., fee waivers, pre -approved ADU site/floor plans, etc.) no later than August 2025. The scope of the City's action shall be commensurate with the level of shortfall from construction targets (i.e., if shortfall is slight, additional incentives may be all that is necessary to address the shortfall). If affordable housing targets are still lagging by February 2027, the City will review and revise efforts to increase construction of ADUs a second time, implementing additional incentives no later than August 2027.

Objective: Facilitate production of 1,512 ADUs by 2031.

Geographic Targeting: Facilitate ADUs in single-family neighborhoods, with a focus on moderate resource areas that also have larger shares of higher income households (e.g., Appendix F, Figures F-9 and F-13).

Program 1.E: Prioritization of Services
As required by Government Code Section 65589.7, the City adopted a written policy providing for priority of water and sewer services to affordable housing developments per Resolution 2006-155.

The City will continue to enforce this policy. Immediately following City Council adoption, the City will deliver to the Golden State Water Company a copy of the 2023-2031 Housing Element.

Responsible Body: Public Works Department, Planning Division Time Frame: Ongoing; deliver adopted Housing Element to Golden State Water Company (2023)
Objective: The City will continue to grant priority for sewer hook-ups and service to lower - income housing developments.
2023-2031 Housing Element City of Santa Maria 1 24

Program 1.F: Annexation Program
If an application for annexation is received, the City will analyze the whole of the application to determine if residential development would be a suitable land use to include in the annexation process for the site. While annexation of additional land is not necessary to accommodate residential development for the 6th Cycle Housing Element, annexation does provide the opportunity for the City to add available residential sites for future cycles.

Responsible Body: Planning Division
Time Frame: Ongoing; complete General Plan Update annexation evaluation (2024) Objective: If future annexations are supported through the General Plan Update annexation analysis, and those areas are determined to be suitable for residential development, complete annexation of additional land for residential development by 2031.

Program 1.G: Manufactured Homes
Government Code Section 65852.3 requires manufactured homes on a permanent foundation to be allowed in the same manner and in the same zone as a conventional stick -built structure. The City's practice is to treat manufactured homes on a permanent foundation as a conventional single-family home. The City will amend the Zoning Ordinance to clearly reflect the City's practice that manufactured homes on a permanent foundation are subject to the same regulations as single-family homes.

Responsible Body: Planning Division
Time Frame: 2024
Objective: Zoning Ordinance amended to clearly define manufactured homes on a permanent foundation as a conventional single-family home consistent with State Law.

Program 1.H: Housing on Religious Institution Sites
Assembly Bill (AB) 1851 (2020) encourages the use of religious facility properties (including parking lots) for housing projects. AB 1851 prohibits cities from requiring the replacement of parking spaces lost due to the construction of housing units, eliminating up to 50 percent of the required number of spaces (Government Code §65913.6). The City to conduct outreach to religious institution property owners and operators to inform them of AB 1851 to encourage housing development.

Responsible Body: Planning Division
Time Frame: Outreach to religious properties with a letter informing them of AB 1851 or other relevant new laws related to housing on religious properties (July 2025 and July 2027)
Objective: Through this outreach, the City's goal is that application(s) for housing on religious institution properties are applied for, and at least 10 housing units are permitted on site(s) with religious institution uses by 2031.
25 1 City of Santa Maria 2023-2031 Housing Element

Program 1.1: Surplus Land Act Sites
Various identified housing sites are City owned and have been designated as surplus land consistent with the Surplus Land Act (the Act). These sites (APNs 121-224-035, 123-280-026, 125-320-049, 123-043-019) are near the intersection of Main Street and Broadway, at the core of the Downtown Specific Plan. The City is in communication with HCD's Public Lands Team to ensure that all provisions of the Act are being met. The City declared these properties `surplus land' and issued a notice of availability on these sites to required parties in compliance with Surplus Land Act provisions, Government Code Section 54220.

The City received four developer inquiries, and after good -faith negotiations, the City subsequently selected the development proposal for the four sites which provides for the highest number of housing units, including affordable units.

The City has received a development application for one of the surplus lands sites (Available Site 6) which proposes a mixed -use building consisting of ground floor commercial space with multiple floors of apartment units above in excess of the 54 units estimated for Available Site 6 as depicted Appendix B. The City has been working interactively with the developer on refinements to the proposal and has presented the application to the Planning Commission at a study session, so the decision makers become familiar with the project.

The City will continue efforts to facilitate the development of housing on the sites, with particular focus on the lower -income unit capacity on these sites. As design concepts are refined, the City will continue to ensure that the developer and the four projects continue to comply with Surplus Lands statutes, including the affordability requirements of Health and Safety Code Section 50052.5 and/or Section 50053.

Responsible Party: Planning Division
Time Frame: 2023-2030
c Complete a comprehensive Disposition and Development Agreement (DDA) between the City of Santa Maria and the developer for the four Surplus Lands sites before the end of 2023;
c Complete multiple entitlements for the Surplus Lands Sites (2023 to 2025). c Issue multiple project building permits (2024 to 2028) c Completion of the four Surplus Lands projects (2025 to 2030) Objective: Over 200 lower -income units permitted on identified sites by January 2031. 2023-2031 Housing Element City of Santa Maria 1 26

Program 1.J: Infrastructure Funding Opportunities
The City will pursue supplemental capital improvement project funding, such as through state or federal grant funding, as a way to support infill development and facilitate housing supply and affordability. Through regular meetings (currently monthly) with a hired consultant, the City is kept apprised of current state and local funding opportunities, including for infrastructure project assistance and grants.

Responsible Party: Planning Division, Utilities Department Time Frame: Ongoing.

Objective: Apply for at least one grant application to fund or supplement funding for capital improvements that benefit residential infill and/or mixed -use projects by January 2031.

Program 1.K: Accessory Dwelling Unit Ordinance Updates
The City will update the ADU Ordinance to comply with current State law based on HCD review.

Responsible Party: Planning Division
Time Frame: December 2023.

Objective: Zoning Ordinance amended to regulate ADUs consistent with State law.

Goal 2: Conserve and Improve Existing Housing Stock
Policies:

Policy 2.1: Promote conservation of affordable housing units The City will encourage strategies to maintain affordability controls on government -assisted projects.

Policy 2.2: Improve substandard housing conditions
The City will encourage the preservation and improvement of the existing housing stock.

Programs:

Program 2.A: Minor Home Repair Programs
Housing rehabilitation seeks to extend the useful life of the City's existing housing stock.

Depending on the age and condition of a structure, the code compliance and housing rehabilitation programs of the City effectively ensure that housing is improved for the residents.

The Minor Home Repair Program, which began in 2013, is operated by Community Action Partnership of SLO County, Inc. (CAPSLO, Inc.) as a subrecipient to the City. The program targets elderly, disabled, and/or low and very low-income households in Santa Maria with the construction and installation of handicapped access improvements (ramps, wheelchair lifts, door widening), 27 1 City of Santa Maria 2023-2031 Housing Element

removal of architectural barriers, health and safety repairs, such as plumbing, electrical, exterior and interior carpentry (porches, decking, stairs, flooring) and building code violations.

In addition to CAPSLO, the City also provides grant funding to CommUnify (formerly Community Action Commission or CAC) for its Minor Home Repair Program. CommUnify delivers handyman services; installs interior grab bars, and provides some structural modifications.

Responsible Body: Community Programs Division, CAPSLO, Inc., CommUnify Time Frame: Ongoing
Objective: Over the Planning Period, 50 low-income units will be repaired/rehabilitated under the CAPSLO program and 50 units for seniors or persons with disabilities will be repaired/rehabilitated under the CommUnify. This objective is subject to Federal grant funding availability which is used to fund these minor home repair programs. As a part of outreach efforts, the City will focus outreach in areas where the housing stock is older, and where more frequent instances of substandard housing are likely to occur. The City outreach will also target not only owners of individual units, but also owners of multi -unit complexes and mobile home parks that fit within the parameters of the respective programs.

Geographic Targeting: Neighborhoods with oldest housing stock.

Program 2.B: Code Enforcement Program
Enforcing housing and building codes directly links to ensuring the safe and habitable condition of the housing stock, and thus the continued viability of neighborhoods. The Code Enforcement Division strives to ensure that all housing within Santa Maria meets life, health, and safety provisions.

Code violations involving immediate health or safety hazards are handled without the need for a complaint. Alleged violations involving public welfare issues are pursued only after a complaint is received. The Code Enforcement Division works with the property owners to assure each person living in the residence is afforded proper housing while the substandard conditions are being rectified. Code enforcement staff informs property owners of the available housing improvement programs (e.g., minor home repair programs) so that certain repairs and safety hazards may be addressed through these available funding programs.

Responsible Body: Code Enforcement Division
Time Frame: Ongoing
Objective: The City will continue its proactive resolution of health and safety code violations, and will promote the use of the minor home repairs programs through code enforcement efforts (see objective under Program 2.A, Minor Home Repair Programs).

Geographic Targeting: Substandard housing outreach efforts will target areas where the housing stock is older, where more frequent instances of substandard housing are likely to occur.
2023-2031 Housing Element City of Santa Maria 1 28

Program 2.C: Energy Compliance and Conservation
Energy conservation plays a vital role in providing decent, affordable housing. The City will solicit information from local utility providers about conservation programs, rebates, and low-income assistance programs and promote available programs to assist residents with energy improvements and upgrades. To monitor resident participation in local unity upgrades programs, the City will request local utilities report out on these programs within City limits.

Responsible Body: Building Division
Time Frame: Solicitation of local utility providers (2024); monitor local participation (annually)
Objective: Increased participation in local utility upgrades programs.

Program 2.D: At -Risk Affordable Housing Units
Continue monitoring at -risk housing units in Santa Maria. As part of the monitoring program, check the conversion risk status on an annual basis and include the information as part of the Housing Element Annual Progress Report. The City has contacted the one project considered to be at -risk, New Visions, which contains six senior units. The operator, SMILE Corporation, does not intent to convert these units to market rate.

The City will send notices to operators of affordable housing developments identified in the monitoring program three years, 12 months, and six months in advance of affordability expiration dates. In working with affordable housing operators, the City will assist with identifying funding sources to maintain affordability, conduct education and support for tenants, and coordinate with qualified nonprofit organizations to ensure ongoing affordability if current operators are unable to do so.

Responsible Party: Community Development Department
Time Frame: The City will contact owners or representatives of any project that will become at -risk at least one year in advance of the expiration of affordability.

Objective: Preserve all existing below -market rate housing units during the planning period, including the six units considered at moderate risk (New Visions at 1106 N. School St.).

Geographic Targeting: Neighborhoods where affordable housing units are located Program 2.E: Replacement Housing Requirements
Pursuant to Government Code 65583.2(g)(3) and 65915, the City will require the replacement of units affordable to the same or lower -income level as a condition of any development on a non - vacant site as required by SB 330 and State law.

Responsible Body: Planning Division
Time Frame: Ongoing as project applications are submitted and reviewed. 29 1 City of Santa Maria 2023-2031 Housing Element

Objective: Implement State law requirements when applicable during development applications and ensure 100 percent of protected units are replaced in all applicable projects during the planning period.

Geographic Targeting: All residential development project sites with existing lower - income units, throughout Santa Maria.

Goal 3: Reduce or Remove Government Constraints on Housing Policies:

Policy 3.1: Expedite permit processing
The City will continue to expedite residential permit processing whenever possible.

Policy 3.2: Promote housing through City regulation
The City will apply codes, ordinances, and policies that encourage housing production.

Programs:

Program 3.A: Residential Permit Process Monitoring and Improvements The City processes permits as quickly and efficiently as possible and will continue to evaluate the permitting process to ensure the process remains streamlined. The evaluation will consider approvals and denials, the number of applications, length of the approval process, the involvement and speed of consultants on producing the appropriate environmental analysis for the project as required by the California Environmental Quality Act (CEQA), and types of conditions imposed including cost and any reductions in the initially proposed number of units. As part of the evaluation, the City will also solicit and consider input from housing developers including non-profit organizations. The monitoring program will review Downtown Permits, Conditional Use Permits (CUP) and Planned Development (PD) Permits proposing residential uses.

Responsible Body: Planning Division
Time Frame: Monitoring report prepared every three years (March 2024, March 2027, and March 2030)
Objective: Meet with five housing developers to discuss the City's approval processes to inform each monitoring report. Strive to reduce the average length of time from deemed complete to project approval for residential mixed -use and multi -family development in part through implementation of Program 3.B (Objective Design Standards) and Program

3.0 (Conditional Use Permits and Planned Development Permits) Geographic Targeting: Citywide, with focus on Downtown and zoning districts where residential mixed -use and multi -family development is most likely to occur. 2023-2031 Housing Element City of Santa Maria 1 30

Program 3.B: Objective Design Standards
Consistent with State law, including the Housing Accountability Act, the City will adopt objective design standards for multi -family and mixed -use projects. This effort will address development standards, the review process, and the design related findings for approval of housing developments in both the Zoning Ordinance and the Downtown Specific Plan. The purpose of these standards is to expedite the approval process to support the City in meeting its housing goals, while ensuring projects are attractive, well -designed, and provide adequate amenities and livability for residents. As part of this process, the City will engage with property owners and developers to ensure that standards will result in feasible projects that can achieve the densities assigned to various properties.

Responsible Body: Planning Division
Time Frame: Objective design standards adopted (July 2025) Objective: The City will develop and adopt objective design and development standards for multi -family and mixed -use projects and thereby shorten the time for City review of and action on residential mixed -use and multi -family developments compared to current typical processing time (see Appendix C, Section C.2.4). Geographic Targeting: Multi -family and mixed -use development throughout Santa Maria.

Program 3.C: Conditional Use Permits and Planned Development Permits To facilitate housing, the City will amend the Zoning Ordinance to reduce the reliance on Conditional Use Permits (CUPs) and Planned Development (PD) Permits for residential mixed - use and multi -family development. In conjunction with the development of objective design standards (Program 3.B), the City will consolidate residential development allowed uses and definitions and reduce the CUP requirement for these uses in multi -family and mixed -use zoning districts (e.g., smaller housing developments would be approved by the Zoning Administrator).

Additionally, the City will modify the Planned Development Overlay District code provisions so that a PD Permit is not required for all residential mixed -use or multi -family development within the PD Overlay District. Rather, a PD Permit would only be necessary for a residential mixed -use or multi -family residential project if a modification to zoning standards is requested.

Responsible Body: Planning Division
Time Frame: Zoning amendments adopted (2025)
Objective: The City will amend the Zoning Ordinance related to CUP and PD Permit applicability through the Zoning Administrator process to reduce approval time for residential mixed -use and multi -family as noted under Program 3.A (Residential Permit Process Monitoring and Improvement) with the aim expediting actions on residential projects, and permitting 100 housing units without a PD Permit approval by 2031.

Geographic Targeting: Citywide multi -family and mixed -use zoning districts. 31 1 City of Santa Maria 2023-2031 Housing Element

Program 3.D: SB 35 Process
The City will develop an application form and checklist and written policy or project review and approval guidelines to specify the SB 35 (2017) streamlining approval process and standards for eligible projects as set forth under Government Code Section 65913.4 and consistent with HCD Updated Streamlined Ministerial Approval Process Guidelines.

Responsible Body: Planning Division
Time Frame: 2023
Objective: SB 35 application form and checklist and written policy or project review and approval guidelines created and published on the City's website.

Program 3.E: Parking Standards
The City currently offers parking reductions and flexibility for residential projects such as reduced requirements in the Downtown Specific Plan area with additional reductions based on project location within the Specific Plan, for residential mixed -use projects, and through the Planned Development Permit process. To reduce the impacts of parking requirements on the production of housing, the City will assess and update parking standards to establish lower rates for studios and one -bedroom units and review implementation of other proven strategies (e.g., expanding shared parking) to reduce the burden of parking on residential development.

Responsible Body: Planning Division
Time Frame: Study and adopt revised parking standards with the future update to Title 12 Zoning Ordinance (July 2024)
Objective: Revised parking standards and additional incentives adopted. Increase the stock of smaller units (e.g., studios, one -bedroom units, etc.) within Santa Maria above the existing 856 studio and 2,956 one -bedroom units (see Housing Needs Assessment (Appendix A), Table A-10) during the 2023-2031 planning period.

Geographic Targeting: Citywide, with focus on multi -family and mixed -use zoning districts.

Program 3.F: R-2 and R-3 Zoning District Densities and Development Standards The City will increase the allowed densities in the R-2 and R-3 zoning districts (or introduce a new residential zoning district) to allow higher density projects. To support increased densities, staff will evaluate site development requirements to ensure the additional density may be accommodated, including but not limited to building height, setbacks, and parking requirements.

The density increase will be initiated through the General Plan Update Land Use Element with the amendment of the High Density and Medium Density residential land use classifications to support additional density. The General Plan Update is currently underway, with adoption anticipated in 2025. The densities permitted in the High and Medium Density Zone designations 2023-2031 Housing Element City of Santa Maria 1 32

(Santa Maria Municipal Code Title 12) will subsequently be amended for consistency with the Land Use Element after the updated General Plan has been adopted. As part of the zoning code update, development standards will be established or modified as appropriate to facilitate achieving maximum densities. The Title 12 Zoning Ordinance amendment will be a public hearing process, involving Planning Commission's recommendation, and City Council adoption.

Responsible Body: Planning Division
Time Frame: Zoning districts amended (December 2025)
Objective: Higher allowed densities adopted into Zoning Ordinance. Also see Program

3.B, 3.0 and 3.E.

Geographic Targeting: Neighborhoods which contain parcels zoned R-2 and R-3.

Goal 4: Address Special Needs Housing
Policies:

Policy 4.1: Create housing opportunities for people with special needs The City will continue to plan for and support the development of special needs housing.

Policy 4.2: Allow special needs housing consistent with State law.

The City will comply with all State legal requirements pertaining to zoning provisions for homeless shelters, transitional housing, and supportive housing, and residential care facilities.

Programs:

Program 4.A: Accommodations for Seniors and Persons with Disabilities The City strives to address the housing, health care, accessibility and service needs of special needs populations such as the elderly, and persons with disabilities. The City continues to comply with the Federal Fair Housing Act and the California Fair Employment and Housing Act by providing reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommodations are necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The City will continue to inform residents on the process and requirements to obtain a reasonable accommodation request (Zoning Ordinance Chapter 12-50).

Responsible Body: Planning Division
Time Frame: Promote reasonable accommodations through the City's communication channels (e.g., social media, handouts, email distribution, etc.) in multiple languages (2024 and ongoing annually)
33 1 City of Santa Maria 2023-2031 Housing Element

Objective: The City will continue to accept reasonable accommodation requests and approve three requests by 2031. If two requests have not been received by 2027, the City will expand outreach efforts, including further collaboration with CAPSLO, Inc. to better increase awareness of available funding for reasonable accommodation improvements (see Program 2.A).

Geographic Targeting: Citywide, with a focus on lower -income and special needs households (e.g., seniors, persons with disabilities) (see Appendix F, Figure F-5).

Program 4.B: Supportive Housing for Homeless Persons
The City supports the development and preservation of housing for unhoused individuals through the allocation of funds to public service agencies and nonprofits providing emergency shelter and support services to the homeless. Such services consist of counseling, case management, health care, and transportation. The Non -Profit Facilities Program is available to these agencies for capital development activities, and specifically assists in the development of housing affordable to extremely low-income households.

Responsible Body: Community Programs Division
Time Frame: Annually through the City's budget process; ongoing Objective: The City will continue to strive to allocate CDBG funding to public service agencies and non -profits providing emergency shelter and services.

Program 4.C: Zoning for Low Barrier Navigation Centers and Emergency Shelters The City's Zoning Ordinance does not currently address low barrier navigation centers (LBNCs), defined as Housing First, low -barrier, service enriched shelters focused on moving people into permanent housing that provide temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing (Government Code Section 65660). State law requires LBNCs to be permitted by -right in areas zoned for mixed -use and nonresidential zones permitting multifamily uses provided they satisfying the provisions established by AB 101 (see Government Code Section 65662).

Additionally, the City will amend emergency shelter parking standards to only require parking for emergency shelter staff and update the definition of emergency shelters to comply with Government Code Section 65583(a)(4), as amended by AB 2339.

Responsible Body: Planning Division
Time Frame: 2026
Objective: The City will amend its Zoning Ordinance to explicitly allow LBNCs to be permitted as provided by State law.
2023-2031 Housing Element City of Santa Maria 1 34

Program 4.D: Zoning for Transitional and Supportive Housing The City's Zoning Ordinance allows transitional and supportive housing consistent with State law.

For clarity, the City will list these uses as allowed uses in the appropriate zones. Transitional housing provides temporary housing for a period of six months to two years, with a focus on moving people into permanent housing (Government Code Section 65582). Supportive housing has no limit on length of stay and is linked to an on -site or off -site service that assists residents in retaining housing, improving their health, and maximizing their ability to live and work in the community (Health and Safety Code Section 50675.14). AB 2162 requires that transitional and supportive housing be permitted by -right in areas zoned for residential uses.

Responsible Body: Planning Division
Time Frame: 2026
Objective: The City will amend its Zoning Ordinance to clarify which zones permit transitional and supportive housing as a residential use of property consistent with State law.

Program 4.E: Zoning for Employee Housing
The City will amend its Zoning Ordinance to specify that employee housing for six or fewer employees is considered a single-family structure in the City's residential land use designations, consistent with Health and Safety Code Section 17021.5. Similarly, the Zoning Ordinance shall be amended per the provisions of Section 17021.6 for employee housing in agricultural land use zones. Lastly, the Zoning Ordinance shall allow eligible agricultural employee housing developments to be subject to a streamlined, ministerial approval process and objective development standards if located on land designated as agricultural in compliance with Section 17021.8. These amendments shall be completed prior to expiration of the Voluntary Compliance Agreement with HUD.

Responsible Body: Planning Division
Time Frame: July 15, 2026
Objective: The City will amend the Zoning Ordinance to allow employee housing consistent with State law.

Program 4.F: Zoning for Residential Care Facilities
The City currently permits residential care facilities for six or fewer persons in all residential zoning districts, as well as districts where single-family homes are allowed by -right and treats them as a residential use. For clarity, the Zoning Ordinance will be amended to specifically list residential care facilities (6 or fewer persons) as a permitted use. The Zoning Ordinance will also be amended to establish objective standards for large residential care facilities (more than six persons) so that those large residential care facilities meeting those standards may be approved without 35 1 City of Santa Maria 2023-2031 Housing Element

discretionary review (i.e., subject only to objective standards) in all residential zoning districts and similar to other residential uses of the same form in those districts.

Responsible Body: Planning Division
Time Frame: 2025
Objective: The City will amend its Zoning Ordinance to facilitate residential care facilities consistent with State law.

Program 4.G: Zoning for Child Family Care Homes
The City currently permits large and small family day care homes in all residential zoning districts.

For clarity, the Zoning Ordinance will be amended to be consistent with the latest regulations and terminology found in the California Code of Regulations, Title 22, Division 12.

Responsible Body: Planning Division
Time Frame: 2025
Objective: The City will amend its Zoning Ordinance to facilitate child family care homes consistent with State law.

Program 4.H: Housing for Extremely Low -Income Households Assist in the development or redevelopment of one or more properties for housing for those with special needs, including housing affordable to extremely low-income households. Specific actions the City will undertake to pursue this effort include:
• Conduct outreach to and coordinate with non-profit housing developers to facilitate housing for special needs populations, including housing affordable to extremely low- income households through discussions regarding potential incentives, programs, financial support, etc. (see also Program 1.A);
• Direct outreach to religious institution property owners or operators to inform them about AB 1851 and any other regulations that encourage housing development on these properties (see also Program 1.H);
• Actively assist and support developers with funding applications to support the development of housing for special needs populations, including extremely low-income housing;
• Grant incentives and concessions to housing developments that include units for any special needs populations, and housing units affordable to extremely low-income households (e.g., State density bonus law provisions; see also Program 1.B). • Outreach efforts for this program will cross -over with efforts and objectives of the other Special Needs programs of this section with the aim to increase housing for all special needs populations.
2023-2031 Housing Element City of Santa Maria 1 36

Responsible Body: Planning Division
Time Frame: Outreach to non-profit developers and religious institution properties by January 2024 and biannually thereafter.

Objective: Approve 50 new units for special needs populations, and 50 new extremely low-income housing units by 2031.

Geographic Targeting: Housing sites citywide, with a focus on areas with the highest TCAC Composite scores (i.e., southeastern, and northeastern neighborhoods).

Program 4.1: Support for Farmworkers
Proactive engagement with farmworkers and community -based organizations which advocate for their needs is essential to ensuring farmworker access to housing which is affordable, safe, and promotes good health. The City will continue to coordinate with public, private, and non-profit organizations, such as the Central Coast Alliance United for a Sustainable Economy (CAUSE) , the Mixteco Indigenous Community Organizing Project (MICOP), the California Farmworker Foundation (CFF), Santa Barbara County Promotores Network, the Grower -Shipper Association of Santa Barbara and San Luis Obispo Counties, and others to address the persistent housing issues farmworkers face, including overcrowding, substandard housing, tenant protections, and language barriers. The City will support these organizations in obtaining funding for new housing or rehabilitation of existing farmworker housing units, such as through the U.S. Department of Agriculture (USDA) Housing Programs, the Joe Serna, Jr. Farmworker Housing Grant (FWHG) Program, or the California Department of Community Services & Development Programs Low - Income Weatherization Program (LIWP).

The City will coordinate with local farm owners and operators on topics dealing with housing and support for their farm employees, such as providing access to services, and distance between workplace and housing. Additionally, the City will proactively collaborate with non-profit developers (e.g., People's Self -Help Housing) to explore funding and incentives for the provision of farmworker housing and to identify specific development opportunities.

All housing projects within the City Jurisdiction, including those for farmworkers, are required to connect to the City water infrastructure, avoiding some of the water quality issues that farmworkers in other areas of the state experience according to the 2022 Farmworker Health Study (FWHS) survey. Connection to City sewer infrastructure is also mandatory, improving the living conditions for Santa Maria farmworker households.

Instances of overcrowding of Farmworker units will be lessened though the development of additional farmworker housing units, which the City will facilitate through the implementation of the programs included under Goal 1: Promote New Housing Construction, and specifically by Program 4.E: Zoning for Employee Housing. Additionally, the City does not restrict the development of housing for farmworkers to any particular residential zoning district.

Although not counted as units under RHNA, many former motels within the City have been improved and used to house seasonal farmworkers, which current US Department of Agriculture 37 1 City of Santa Maria 2023-2031 Housing Element

data indicate comprise approximately 43 percent of the Santa Barbara Couty total farmworker population.

Through the various methods of anonymous reporting available (in both Spanish and English) the City's Code Enforcement Division will continue to investigate and issue corrections for substandard housing conditions, including lack of water or heat, proper sanitation, infestations, structure damage or other forms of blight. The Building Division and Fire Department will continue to conduct building permit and fire safety inspections for the conversion of existing buildings to housing for farmworkers.

Responsible Body: Planning Division
Time Frame: Identify actions the City can appropriately undertake to improve farmworker housing (2025).

Objective: Approve 50 new farmworker housing units by 2031.

Geographic Targeting: West -central and northwestern neighborhoods which are known to host existing farmworker housing and higher rates of overcrowding, substandard housing, etc.

Goal 5: Promote Equal Housing Opportunities
Policies:

Policy 5.1: Promote fair housing and home finance education The City will increase awareness of fair housing laws and services to landlords, lenders, and tenants. The City will also connect residents with training on home finance and purchasing.

Policy 5.2: Improve access to opportunity for all residents Take action to create equitable neighborhoods and improve access to opportunities while promoting housing stability.

Policy 5.3: Implement anti -displacement measures
Enforce the right of first refusal for residents displaced through redevelopment of existing housing stock as required by Government Code §66300(d)(2)(D)(ii).

Programs:

Program 5.A: Homebuyer Assistance Program
The City will support and promote available homebuyer programs (e.g., the Housing Trust Fund of Santa Barbara County's Workforce Homebuyer Program) and seek funding to assist residents with buying a home through first-time homebuyer down payment programs. Programs may provide pre -purchase counseling, deferred payment down payment loans, and closing cost grants to households.
2023-2031 Housing Element City of Santa Maria 1 38

Responsible Body: Community Programs Division
Time Frame: Promote available programs through the City's communication channels (e.g., social media, handouts, email distribution, etc.) in multiple languages (annually as program funding remains available); complete grant applications for homebuyer program funds every three years (2024, 2027, and 2030) or until a grant is awarded or other funding allocated.

Objective: The City will seek to increase funding of homebuyer assistance programs through grant applications with a goal of at least 10 households assisted by 2031.

Geographic Targeting: Increase housing opportunities for first-time homebuyers in moderate resource areas that also have larger shares of higher income households (e.g., Appendix F, Figures F-9, and F-13)
Program 5.B: Tenant -Based Assistance
The Housing Choice (Section 8) Rental Assistance Program is administered by the Housing Authority of the County of Santa Barbara. This program assists very low-income, elderly, and disabled households by paying the difference between 30 percent of an eligible household's income and the actual rental cost. The City will continue to promote the participation of eligible Santa Maria residents in the County -administered Housing Choice Rental Assistance Program.

Responsible Body: Community Programs Division
Time Frame: Promote programs through City channels (annually) Objective: Since Housing Choice vouchers are portable, the number of vouchers used in Santa Maria will vary over time, but the City will seek to increase the current level of 1,736 households located in the City (including Orcutt) participating in the Section 8 program by 10 percent to 1,910 households. If Section 8 households are not on track with the target by 2027 (i.e., 1,823 voucher households in 2027), the City will work with the Housing Authority of the County of Santa Barbara to facilitate increased voucher use within Santa Maria through outreach or other mutually agreed upon strategies.

Geographic Targeting: Citywide, but with an aim to increase housing opportunities for low- income households in moderate resource areas that also have larger shares of higher income households (e.g., Appendix F, Figures F-9 and F-13) Program 5.C: Rental Deposit Assistance
The City supports programs that assist residents with rental payments, based on availability, such as the City's Tenant Based Rental Assistance (TBRA) Program, which provides security deposit assistance through a Qualified Referring Agency (QRA) to qualified low-income households.

Santa Maria is a member of the Santa Barbara County's HOME Consortium and currently is using part of its HOME funds to help with rental deposits within the City limits.

Responsible Body: Community Programs Division
Time Frame: Ongoing
39 1 City of Santa Maria 2023-2031 Housing Element

Objective: Based on availability of HOME funding and vacancy rates of affordable units, assist 300 households with rental deposits by 2031, averaging approximately 38 households per year. If the City is not on track with the target by 2027 (i.e., 150 households assisted with rental deposits by 2027), the City will take most action based on the limiting factor (e.g., additional outreach, seek additional funding source, etc.) within six months.

Geographic Targeting: Citywide, but with an aim to increase housing opportunities for low- income households in moderate resource areas that also have larger shares of higher income households (e.g., Appendix F, Figures F-9, and F-13) Program 5.D: Fair Housing Program
The City is committed to supporting Fair Housing programs for residents. The housing programs sponsored by the City promote housing opportunities for all persons within the community. The Legal Aid Foundation of Santa Barbara County, under contract with the City, conducts fair housing activities, and the City's Community Programs Division administers the production and distribution of Fair Housing information throughout the City.

The City will actively advertise the Legal Aid Foundation's services through avenues such as the City website, flyers or brochures in public buildings, and on social media. These advertisements will emphasize common tenant protection needs and anti -discrimination actions, such as tenant/landlord mediation and the promotion of legal services to prevent source of income discrimination. Materials will be provided in English and Spanish. The City will track awareness of fair housing services through surveys and/or other methods of receiving input from the community, and increase awareness of such services over the planning period, adjusting outreach methods based on community input results.

Responsible Body: Community Programs Division
Time Frame: Prepare information in multiple languages (2024); provide materials on the City's website and distribute through various channels (2024), update and re -distribute material regularly but no later than every three years (2027 and 2030) Objective: The City will track awareness of fair housing services and increase awareness of such services over the planning period, adjusting outreach methods based on community input (first survey 2025 and every three years following).

Geographic Targeting: Citywide with a focus on low-income and special needs households (e.g., seniors, female -headed households, large families, persons with disabilities).

Program 5.E: Tenants Rights Information
The City will continue to effectively communicate information regarding local and regional tenants' rights resources, as well as other relevant resources, in a user-friendly manner. The City will better inform residents, especially those who are harder to reach and potentially at -risk of displacement, through avenues such as the City website, flyers, or brochures in public buildings, and on social 2023-2031 Housing Element City of Santa Maria 1 40

media. Information will be multilingual, and the City will coordinate with organizations and local groups to ensure the effective distribution of information community -wide, including to the Mixteco community who relies more on spoken communication.

Responsible Body: Community Development Department
Time Frame: Written materials produced and translated into Spanish and distributed (June 2025)
Objective: The City will continue to inform its residents on fair housing rights and resources with a focus on reaching at -risk households and will partner with local organizations and groups to be more effective. Our goal is to educate over 200 households through 2031 (i.e., 100 households by 2027).

Geographic Targeting: Citywide with a focus on low-income households, special needs households (e.g., seniors, female -headed households, large families, persons with disabilities), and non-English speaking households.

Program 5.F: Environmental Issue Identification and Action The City will conduct outreach and gather information on environmental and health factors most acutely impacting residents in areas of Santa Maria with the lowest CalEnviroScreen and California Tax Credit Allocation Committee (TCAC) scores (Appendix F, Figures F-13, F-16, and F-32). The City will develop an action plan to address the identified issues, including prioritization, timeframe for implementation, responsible party(ies), and funding sources. Specific City actions include the following or alternative equivalent measures:
• Continue to regularly and efficiently issue permits related to abandoned oil well closures and hazardous waste clean ups (see Appendix C, Section C.4.1); • Conduct outreach to property owners to facilitate understanding and awareness of oil well closures and hazardous waste clean-up resources; and
• As part of Program 4.1 (Support for Farmworkers), identify environmental risks to farmworkers in the home that the City could seek funding and/or take action to improve.

Responsible Body: Community Development Department
Time Frame: Develop outreach plan and conduct outreach (2024-2025); develop an action plan (2025-2026); implement action plan (2026-2031) Objective: Develop and implement actions to address environmental health issues most effectively in the lowest resource areas. Also see Program 5.G.

Geographic Targeting: Neighborhoods with the lowest CalEnviroScreen and TCAC scores (see Appendix F, Figures F-13, F-16, and F-32).
41 1 City of Santa Maria 2023-2031 Housing Element

Program 5.G: Environmental Justice
The City is committed to avoiding the concentration of high -impact or hazardous uses and facilities that disproportionately affects any community, and the City will strive to locate amenities, services, public facilities, and improvements equitably. The City will incorporate Environmental Justice goals, policies, and objectives as part of the comprehensive General Plan Update, which is currently underway. The Environmental Justice provisions of the draft update will first be made available for public review and comment. The Environmental Justice goals, policies, and objectives will be considered in subsequent public hearings before the Planning Commission and City Council, with adoption by of the new General Plan anticipated in 2025.

Responsible Body: Planning Division
Time Frame: Incorporate Environmental Justice goals, policies, and objectives into the General Plan (January 2024) with adoption in 2025 and thereafter, at least annual and ongoing implementation.

Objective: TCAC Opportunity Areas are updated annually by the TCAC methodology and can be a measure to evaluate progress under this Program. Although environmental factors can take significant time to ameliorate, the City will strive to see fewer census tracts within Santa Maria identified as lower resource (Appendix F, Figure F-13). Also see Program 5.1 (Capital Improvements in Low -Income Areas).

Geographic Targeting: Citywide with the lowest CalEnviroScreen and TCAC scores (see Appendix F, Figures F-13, F-16, and F-32).

Program 5.H: Condominium Conversions
Condominium conversions can raise the cost of housing and remove affordable multi -family rental housing off the market. The City currently requires for any condominium conversion project a report filed with the City as detailed in Section 12-46.06 (Reports Required for Conversion) and a planned development or conditional use permit approval.

The City will evaluate the requirements for condominium conversions and determine if any improvements could be made to preserve existing units and prevent displacement.

Responsible Body: Planning Division
Time Frame: Evaluate condominium conversion regulations (December 2026); adopt amendments to condominium conversion regulations if appropriate based on evaluation (September 2027)
Objective: Preserve existing rental stock from being converted to condominiums throughout the planning period.

Geographic Targeting: Rental units citywide.
2023-2031 Housing Element City of Santa Maria 1 42

Program 5.1: Capital Improvements in Low -Income Areas
The City will complete projects to improve conditions in areas with higher concentrations of low- income households. Projects in and around the Downtown area include the Downtown Streetscape Catalyst Project, Chapel Plaza Renovation Project, and Veterans Memorial Park Renovation Project. These projects will create pedestrian enhancements, new cultural and recreational amenities including walking trails and playground equipment, additional trees and landscaping, signage, and security lighting.

The City capital improvement plan provides for repairs, replacements, and upgrades to sewer mains and trunk lines Citywide to provide sufficient capacity on an as -needed basis, including in those areas with concentrations of lower income households.

The City invests in all areas of the community, including areas with a higher concentration of lower -income households, between Blosser Road and Broadway, and Alvin Avenue and Stowell Road, as depicted on Figure 27. For example, to enhance sewer capacity, including flows from the downtown area, the City's 2022-2024 Adopted Budget allocated $4,332,340 of funds to upgrade the size of the sewer trunk line for the Dejoy Phase II project; $525,000 to upgrade the sewer line on Pine Street between Jones and Boone; and $500,000 to construct the sewer line upgrade on Knudsen Way. All of these projects are within the boundaries of the lower -income concentration area of the City depicted on Figure F-27. Other budgeted improvements within this area are the design and construction of a new intersection control feature at the intersection of Morrison Avenue/Depot Street funded with $475,000 of gas tax, local transportation funds and growth mitigation fees; and $5,000,000 for the expansion of Fire Station #1 to support additional staffing, additional apparatus, shift Battalion Chiefs, workout facilities, and future growth.

Through Program 1.J (Infrastructure Funding Opportunities) the City will pursue supplemental capital improvement project funding (e.g., grants) to complete infrastructure improvements as needed to facilitate the construction of infill residential development. Through regular (currently monthly) meetings with a hired consultant, the City is kept apprised of current state and local funding opportunities, including for infrastructure project assistance and grants.

Responsible Body: Planning Division, Public Works
Time Frame: Chapel Plaza Renovation and Veterans Memorial Park Renovation projects completed by July 2025; Downtown Streetscape Catalyst Project completed by July 2026 Objective: Continue to identify and fund multiple capital projects in each two-year budget cycle, including through the application of Program 1.J. Achieve over three million invested in projects completed in low-income areas by July 2026. Subject to the availability of applicable grants, apply for four grants for improvement projects for lower income areas of the City during the planning period.

Geographic Targeting: Downtown and Lower -income areas. 43 1 City of Santa Maria 2023-2031 Housing Element

Program 5.J: Housing Mobility
Housing mobility strategies consist of removing barriers to housing in areas of opportunity and strategically enhancing access (Santa Maria is mostly low resource but has moderate resource areas in the northeast and southeast, see Figure F-13). To improve housing mobility and promote more housing choices and affordability in the moderate resource areas, including in lower -density neighborhoods, the City will employ a suite of actions to expand housing opportunities affordable to extremely low, very low, low, and moderate income households. Actions and strategies include:
• Accessory Dwelling Units (ADUs) — Promote ADUs in single-family neighborhoods through outreach and providing information on technical and/or available financial assistance. See Program 1.D.
• Religious Institutional Sites — Encourage housing on religious institutional sites within the City through outreach and facilitating housing applications. See Program 1.H. • Facilitate Lower and Mixed -Income Projects in Higher Resource Areas — The City will facilitate the approval and permitting of lower and mixed -income projects in moderate resource areas (see Figure F-31) with the goal of 250 lower income units constructed in these areas by 2031.

Responsible Body: Planning Division
Time Frame: Annually review overall progress and effectiveness and include information in annual report to HCD. If the City is not on track to meet its 300 affordable housing unit goal for the 8 -year RHNA cycle by 2027 (i.e., 150 affordable units built or in process by 2027), the City will consider alternative land use strategies and make necessary amendments to zoning or other land use documents to facilitate a variety of housing choices, including but not limited to, strategies that encourage missing middle zoning (small-scale multi -unit projects), and/or adaptive reuse, within six months.

Objective: Provide 300 housing opportunities affordable to lower income households by February 2031.

Geographic Targeting: Moderate resources areas, including lower -density neighborhoods in moderate resource areas.
2023-2031 Housing Element City of Santa Maria 1 44

IV.0 Quantified Objectives
Table IV -2 presents the City's quantified objectives for construction, preservation, and rehabilitation for the 2023 — 2031 planning period that will be achieved through the policies and programs described above.

Table IV -2: Quantified Objectives
Program Type/Affordability
Extremely
Lowy
Very Low
Low
Moderate
Above
Moderate
Total
New Construction
516
516
536
731
3,119
5,418
Rehabilitation
25 25
100
-
-
150
Conservation/Preservation2.3
1,055
1,055
106
0 0
2,216
Total
1,596
1,596
742
731
3,119
7,784
1 The City estimates 50% of the very low households would qualify as extremely low income. 2 See Program 5.B. Assumes Section 8 Housing Choice Voucher recipients are split evenly between extremely low and very low income.
3 See Program 5.C. Assumes Rental Deposit recipients are split evenly between the three low-income subcategories.
45 1 City of Santa Maria 2023-2031 Housing Element

Appendix A: Demographics and Housing
Needs Assessment
Contents
Appendix A: Demographics and Housing Needs Assessment 1 Contents 1
Section A.1 Introduction and Summary 2
A.1.1 Introduction 2
A.1.2 Summary 2
Section A.2 Population Characteristics 4
A.2.1 Population 4
A.2.2 Age 5
A.2.3 Race/Ethnicity 6
A.2.4 Employment 8
Section A.3 Household Characteristics 10
A.3.1 Household Size 10
A.3.2 Household Income 11
A.3.3 Overcrowding 13
A.3.4 Special Housing Needs 14
Section A.4 Housing Stock Characteristics 29
A.4.1 Housing Type and Vacancy 29
A.4.2 Housing Tenure 31
A.4.3 Housing Units Permitted 33
A.4.4 Housing Age and Condition 34
Section A.5 Housing Costs and Affordability 36
A.5.1 Ownership Costs 36
A.5.2 Rental Costs 38
A.5.3 Overpayment 40
A.5.4 At -Risk Housing Assessment 44
Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-1

Section A.1 Introduction and Summary
A.1.1 Introduction
This section of the Santa Maria Housing Element (Appendix A) presents the foundation for understanding Santa Maria's housing needs. The section analyzes demographic, economic, and housing -related variables which include the City's population, special needs groups, employment, housing stock, and housing affordability. Findings in this section provide the basis for the housing goals, policies, and programs to address those needs.

Housing Needs Assessment
pir
Basic
Housing Needs
• Population
characteristics (e.g.,
age, employment)
• Household
characteristics
(e.g., household size,
household income.
overcrowding)
i
Special Housing Needs
• Large families
• Seniors
• Female -headed households
• Persons with disabilities
Housing Stock
• Housing type
• Housing tenure
• Units permitted
• Housing age and
• Residents living below the condition
poverty level
• Farmworkers
• People experiencing
homelessness
f
Housing
Affordability
• Ownership costs
• Rental costs
• Overpayment
• At -risk housing
units
Data sources for this section are derived primarily from the U.S. Census Bureau's American Community Survey (ACS), the California Department of Finance (DoF), and the Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS).

A.1.2 Summary
Housing needs are determined by a city's population and its existing housing stock and provide context for developing housing policy, such as which types of housing are most needed. The following summarizes key data from this housing needs assessment. • Santa Maria is a relatively large and fast-growing city. In 2020, Santa Maria's population of 107,445 accounted for nearly a quarter of Santa Barbara County, and from 2000 to 2021, Santa Maria's population grew by 39 percent while the greater county population grew by 10 percent.
• Santa Maria has a somewhat younger population than Santa Barbara County. In 2020 the median age in Santa Maria was 29 years compared to 33.8 years in the county.

A-2 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

• Most residents in Santa Maria identify as Hispanic or Latino. In 2020, 77 percent of Santa Maria's population identified as Hispanic or Latino and 46 percent of the county population identified as Hispanic or Latino.
• Santa Maria is a significant employment center in Santa Barbara County. In 2019, Santa Maria had an estimated 38,319 jobs, which represented 23 percent of employment in the county. However, Santa Maria has a highly disproportionate share of agriculture jobs in relation to Santa Barbara County. In 2019, 24 percent of Santa Maria's jobs were in the agriculture and forestry industry compared to 10 percent of jobs in the county. • Households are large in Santa Maria compared to Santa Barbara County. In 2020, the average household size in Santa Maria was 3.73 compared to 2.86 in the county. • A larger share of Santa Maria households experience overcrowding than in the overall county. In 2020, an estimated 21.7 percent of Santa Maria households were overcrowded and 9.4 percent of households were severely -overcrowded; in the county 10.3 percent were overcrowded and 3.9 percent were severely -overcrowded. • Santa Maria household incomes are generally lower compared to the county. In 2020, the median household income in Santa Maria was $67,634 compared to the county median income of $78,925.
• In 2020, 12.7 percent of Santa Maria residents were below the federal poverty line, which was comparable to the share of residents in Santa Barbara County where 12.9 percent of residents were below the poverty line.
• Among senior Santa Maria households (containing at least one person aged 62 or older), 60 percent (3,405 households) are lower -income (earning 80 percent of AMI or less) and 40 percent are housing cost -burdened (spending 30 percent or more of their annual income on housing costs). Seniors are a designated special needs population under housing element law. Seniors can face higher levels of housing insecurity because they are more likely to be on a fixed income while requiring higher levels of care. • Santa Maria's other special housing needs populations include persons with a disability that may require accessible housing (9.7 percent of residents) and female -headed households who are often at greater risk of housing insecurity (19 percent of family households).
• In Santa Maria, 29 percent (8,124 households) of households are considered large households (five or more people), which are generally served by three -bedroom or larger units. Santa Maria's inventory of three -bedroom or larger units (16,730 units) could sufficiently accommodate the City's population of larger families, however, the presence of adequately sized units does not necessarily mean they are affordable to large families as approximately 40 percent of Santa Maria household are cost -burdened.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-3

• Similar to population growth, from 2000 to 2021, housing growth was faster in Santa Maria (35 percent) than in Santa Barbara County (14 percent). • In Santa Maria, 50 percent of households rent their home and in Santa Barbara County 48 percent of households rent their home.
• Home values and rents are generally less expensive in Santa Maria compared to Santa Barbara County. As of March 2022, Santa Maria's median home sales price was $560,667 and the county home sales price was $845,000. The median rent paid in Santa Maria in 2020 was $1,380 in Santa Maria and $1,596 in Santa Barbara County.

Section A.2 Population Characteristics
A.2.1 Population
The City of Santa Maria has a relatively large and fast-growing population. In 2020, Santa Maria had a population of 107,445 residents, which accounted for approximately 24 percent of Santa Barbara County's population (Table A-1). From 2000 to 2021, Santa Maria's population grew by 39 percent (30,022 residents), while the overall Santa Barbara County population increased by 10 percent (41,825 residents).

Table: A-1: Population Growth Trends, Santa Maria and Santa Barbara County, 2000 to 2021 Total Population
Santa Maria
Santa Barbara County
2000 202X- Change 2000-2021
Number Number Number Percent
77,423
399,347
107,445
441,172
30,022
41,825
39%
10%
Source: CA DOF E-4. E-5 Population and Housing Unit Estimates. 2021 110,000
100,000
90,000
80,000
70,000
60,000
Figure A-1: Population Growth Trends, Santa Maria, 2000 to 2021 107,445
00 ON 00 00 O� O� OHO O� 00 Og ,gyp �N rt �"D �R �< �O �� ^O �0 0 N O O O O O O O O O O O O (-4:\ �O �O �O �O �O `1, -
O 00 4,
`1,-
Source:

Source: CA DOF E-4, E-5 Population and Housing Unit Estimates. 2021 A-4 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Figure A-2: Population Growth Trends, Santa Barbara County, 2000 to 2021 Total Population
470,000
450,000
430,000
410,000
390,000
370,000
350,000
330,000
0 0O� 0 0 tx Oh 00 A 0 00 00 O �O �� ,� O0, �O� ^ b, O �O� 0 A � � �� N ,�0 O
(O (O �O rL0 rL0 �O (O (O �O q, �O �qO 111��O q, qO (1, X00 Source: CA DOF E-4. E-5 Population and Housing Unit Estimates. 2021 A.2.2 Age
441,172
The distribution of age groups influences the types of housing a community needs. For example, a higher number of children and young families can indicate a need for homes with more bedrooms and proximity to schools, parks, and related services. Meanwhile, a notable presence of elderly residents may indicate a demand for smaller, multi -family and accessible units due to the increasing desire to age in place (i.e., stay in their current home or move to a more affordable, age -appropriate residence).1
In 2020, the median age of Santa Maria residents was 29 years old and was slightly lower than the median Santa Barbara age of 33.8 years old (Table A-2). Since 2010, the median age in Santa Maria and the county increased, but only marginally in each jurisdiction. From 2010 to 2020, the median age increased by 2.1 percent in Santa Maria and by 0.6 percent in Santa Barbara County.

Santa Maria's population is made up of more children and fewer seniors compared to the overall county population. In 2020, 31 percent of Santa Maria's population was under the age of 18 compared to 22 percent in Santa Barbara County, and 10 percent of Santa Maria residents were 65 years or older compared to 15 percent in the county (Figure A-3). 1 HUD Office of Policy Development and Research, Aging in Place: Facilitating Choice and Independence Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-5

Table: A-2: Median Age, 2010 to 2020
Total Population
35%
30%
25%
20%
15%
10%
5%
0%
2010 2020 Change 2010 to 2020
Number Number Number Percent
Santa Maria
Santa Barbara County

28.4 33.6

29.0 33.8

0.6 0.2

2.1%

0.6%
Source: ACS, 5 -Year Est. 2010, 2020
M
cN
Under 18
Source: ACS. 5 -Year Est. 2020
A.2.3 Race/Ethnicity
Figure A-3: Age Distribution, 2020
c'
M
C
CO
r-
N
u')
N
0)
•
N
0 LO
18 to 24 25 to 44 45 to 64 65 and older
❑ Santa Maria Santa Barbara County
Understanding the racial and ethnic makeup of a city and region is important for designing and implementing effective housing policies and programs. The location and concentration of racial and ethnic groups are often shaped by a history of market factors and government actions that may result in exclusionary zoning, discriminatory lending practices, or displacement.

Most residents in Santa Maria identify as Hispanic or Latino. In 2020, 77 percent of Santa Maria's population identified as Hispanic or Latino (Figure A-4). The Hispanic or Latino population accounts for a larger share of residents in Santa Maria compared to the county where 46 percent of residents identified as Hispanic or Latino. Santa Maria also has a smaller share of Non -Hispanic White residents compared to the county. In 2020, Non -Hispanic White residents accounted for 15 percent of Santa Maria's population and 44 percent of Santa Barbara County's population.

In the last decade, in which data is available, the size of the Non -Hispanic White population decreased, and the Hispanic Latino population grew in Santa Maria and the county. From 2010 to 2020 the number of Non -Hispanic White residents decreased by 26 percent in Santa Maria and A-6 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

6 percent in the county, while the number of Hispanic or Latino residents increased by 23 percent in Santa Maria and 19 percent in the county (Table A-3).

Figure A-4: Race and Ethnicity, 2020
0 N-
Total Population
80%
70%
60%
50%
40%
30%
20%
10%
0%
'e
U
0 Co
0 N
N
M
Non -Hispanic Hispanic/Latino Non -Hispanic Non -Hispanic Other White Black/African Asian Race/Ethnicity
American
o Santa Maria 2020 Santa Barbara County 2020
Source: ACS 5 -Year Est. 2020
Table A-3: Change in Race and Ethnicity 2010 to 2020
r
Number Percent
Santa Maria
Non -Hispanic White
Hispanic/Latino
Non -Hispanic Black/African American
Non -Hispanic Asian
Other Race/Ethnicity
Santa Barbara County
Non -Hispanic White
Hispanic/Latino
Non -Hispanic Black/African American
Non -Hispanic Asian
Other Race/Ethnicity
-5,586 -26%
15,269 23%
-140 -10%
290 6%
1,050 100%
-12,111
32,768
705
4,117
3,365
-6%
19%
10%
21%
30%
Source: ACS 5 -Year Est. 2010, 2020
Appendix A: Demographics and Housing Needs Assessment City of Santa Maria I A-7

A.2.4 Employment
Santa Maria is a significant employment center in Santa Barbara County. In 2019, Santa Maria had an estimated 38,319 jobs, which represented 23 percent of employment in the county (Table A-4). Santa Maria has also experienced substantial job growth in recent years. From 2011 to 2019, Santa Maria added 6,144 jobs, an increase of 19 percent and a faster rate of growth than the overall county, which grew by a rate of 13 percent during the same period. Santa Maria's job growth also accounted for nearly a third of the county's job growth from 2011 to 2019.

About 37 percent of residents work and live within Santa Maria while the remaining 63 percent of the City's workforce lives outside the City and commutes to Santa Maria for work (Table A-5).

Approximately 21,710 Santa Maria residents are employed at a location outside of the City.

Santa Maria has a large concentration of agriculture and forestry industry sector jobs. In 2019, 24 percent of Santa Maria's jobs were in the agriculture and forestry industry compared to 10 percent of jobs in the county (Figure A-5). A large share of employed Santa Maria residents also held agriculture and forestry jobs. In 2020, 22 percent of residents who worked described their work as relating to the agriculture and forestry industry (Figure A-6).

Table A-4: Total Employment 2011 to 2019
2011 2019 Change 2011 to 2019
Number Number Number Percent
Santa Maria
Santa Barbara County
32,175 38,319
149,543 169,609
6,144
20,066
19%
13%
Source: Longitudinal Employer -Household Dynamics. 2022 Table A-5: Santa Maria Resident Workers, 2019
Employed in the City of Santa Maria but Living Outside
Employed and Living in the City of Santa Maria
Living in the City of Santa Maria but Employed Outside
24,340
13,979
21,710
Source: Longitudinal Employer -Household Dynamics. 2022 A-8 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Figure A-5: Jobs by Largest Industry Sectors, 2019
Total Jobs
25%
20%
15%
10%
5%
0%
O
Agriculture &
Forestry
eO
I
o
M
Health Care &
Social
Assistance
0 N
N-
Retail Trade Educational Accommodation Manufacturing
Services & Food Services
■ Santa Maria Santa Barbara County
Note: Figure represents the top six largest industry sectors by employment. Not all industries sectors are represented.

Source: Longitudinal Employer -Household Dynamics, 2022 % Employed Residents
40%
35%
30%
25%
20%
15%
10%
5%
0%
N
N
I
Figure A-6: Resident Employment by Occupation, 2020
O
N
Agriculture and Management
Forestry
a)
r
1 rn
Services Sales and Production and
Office -based Transportation
• Santa Maria Santa Barbara County
Universe: Employed Civilian Population 16 Years and Over Source: ACS, 5 -Year Est. 2020
co
Construction
and Mining
N -
Appendix A: Demographics and Housing Needs Assessment City of Santa Maria I A-9

Section A.3 Household Characteristics
A.3.1 Household Size
Households are large in Santa Maria compared to Santa Barbara County. In 2020, the average household size in Santa Maria was 3.73 compared to 2.86 in the county (Table A-6). The average household size has also increased more in Santa Maria than in the county. From 2010 to 2020, the average household size in the City grew by 5.7 percent and by 1.8 percent in Santa Barbara County.

The distribution of household sizes further explains the difference in household sizes between Santa Maria and the county. In 2020, 29 percent of households in Santa Maria contained five or more people, while only 15 percent of households in Santa Barbara County were of the same size (Figure A-7). Additionally, Santa Maria has a smaller share of households containing two people or less. In 2020, 15 percent of Santa Maria households were single -person households and 22 percent were two -person households, and in Santa Barbara County 24 percent were single - person households and 32 percent were two -person households.

Table A-6: Average Household Size, 2020
Occupied Housing Units
35%
30%
25%
20%
15%
10%
5%
0%
MIT T
2010 2020 Change 2010 to 2020
Number Number Number Percent
Santa Maria
Santa Barbara County

3.53 2.81

3.73 2.86

0.20 0.05

5.7%

1.8%
Source: ACS, 5 -Year Est. 2010, 2020
e
10 0
N
Figure A-7: Household Size, 2020
N
N
1 0
1 0
ti
1 6
rn
N
L)
1 -Person 2 -Person 3 -Person 4 -Person 5 or More -Person Household Household Household Household Household
❑ Santa Maria Santa Barbara County
Source: ACS, 5 -Year Est. 2020
A-10 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Median Income
Mean Income
A.3.2 Household Income
Household income is a critical component of housing affordability. Income impacts the decision to rent versus own, as well as the size and location of housing. Santa Maria household incomes are generally low compared to the county (Table A-7). In 2020, the median household income in Santa Maria was $67,634, which is 14 percent lower than the county's median income of $78,925.

The mean income in Santa Maria ($80,604) is 28 percent lower than in Santa Barbara County ($78,925).

Table A-7: Household Income, 2020
Santa Maria
Santa Barbara
County
$67,634
$80,604
$78,925
$111,731
Source: ACS. 5 -Year Est. 2020
The RHNA is comprised of five income categories defined by their respective proportion of the county area median income (AMI), ranging from extremely low to above moderate income. Table A-8 shows the breakdown of the AMI categories.

Table A-8: Income Categories as Percentage of AMI, 2021 Acutely Low'
Extremely Low
Very Low
Low
Moderate
Above Moderate
0-15%
15-30%
30-50%
50-80%
80-120%
>120%
'New income category effective January 1. 2022.

Source: Department of Housing and Community
Development. 2021
Table A-9 shows the 2021 income limits for the various income categories in Santa Barbara County. The above moderate category includes all households earning above the upper limit of the moderate -income category.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-11

Table A-9: Santa Barbara County 2021 Income Limits by Household Size, 2021 Number of Persons in Household
Income Category 1 2 3 4 5 6 7 8
Acutely Low
Extremely Low
Very Low Income
Low Income
Median Income
Moderate Income
$9,450 $10,800 $12,150 $13,500 $14,600 $15,650 $16,750 $17,800 $26,250 $30,000 $33,750 $37,450 $40,450 $43,450 $46,450 $49,450 $43,750 $50,000 $56,250 $62,450 $67,450 $72,450 $77,450 $82,450 $70,050 $80,050 $90,050 $100,050 $108,100 $116,100 $124,100 $132,100 $63,050 $72,100 $81,100 $90,100 $97,300 $104,500 $111,700 $118,950 $75,650 $86,500 $97,300 $108,100 $116,750 $125,400 $134,050 $142,700 Note: There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high -income areas. In Santa Barbara County, as well as several others, the magnitude of these adjustments results in the low-income limit exceeding the median income.

Source: Department of Housing and Community Development, 2021 Using data from the American Community Survey (ACS), HUD compiles a dataset called the Comprehensive Housing Affordability Strategy (CHAS) that allows local governments to more easily analyze their regional housing issues. The most recently available CHAS dataset is from 2018 and shows that over half (53 percent) of all households (14,755 households) in Santa Maria are low-income, earning 80 percent or less of AMI (Figure A-8). Households earning extremely low incomes (0 to 30 percent of AMI) account for 13 percent (3,705 households) of total Santa Maria households. Santa Barbara County has a greater percentage (59 percent) of households earning more than 80 percent of AMI than Santa Maria (47 percent). % Total Households
70%
60%
50%
40%
30%
20%
10%
0%
M
Figure A-8: Household Income Category, 2018
N
N
0 Extremely Low Very Low Low Moderate and Above
(0-30% AMI) (30-50% AMI) (50-80%) Moderate (>80%
AMI)
• Santa Maria ❑ Santa Barbara County
Source: HUD, Comprehensive Housing Affordability Strategy, 2018 A-12 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Throughout the City, there are disparities between the incomes of homeowners and renters.

Typically, the number of low-income renters outpaces the amount of affordable housing available.

In Santa Maria, most homeowners earn a moderate income or higher while a larger share of households that rent their home are low, very low, or extremely low-income. In 2018, 64 percent of Santa Maria homeowners (8,750 households) earned above 80 percent AMI compared to 30 percent (4,145 households) of households that rented their home (Figure A-9). Among households that rent their home, 20 percent (2,820 households) earned extremely low incomes compared to six percent (885) of homeowner households.

Figure A-9: Santa Maria Household Income Category by Tenure, 2018 Households
10,000
8,000
6,000
4,000
2,000
0 0
co 0
N V
co
I!
Extremeley Low
(0-30% AMI)
LO
rn
N
Very Low
(30-50% AMI)
❑ Owner Renter
Source: HUD, Comprehensive Housing Affordability Strategy, 2018 A.3.3 Overcrowding
0 10
1-
C6
0 CO
LO
N-
L)
7�
1•
Low Moderate and Above
(50-80%) Moderate (>80%
AMI)
Overcrowding occurs when the number of people living in a household is greater than the home was designed to hold. There are several standards for defining overcrowding, but this report uses the U.S. Census Bureau definition: more than one occupant per room (not including bathrooms or kitchens). Additionally, the U.S. Census Bureau considers units with more than 1.5 occupants per room to be severely overcrowded. Overcrowding is often related to the cost of housing and typically occurs when demand is high, supply shrinks, and prices rise relative to wage levels. In many cities, overcrowding is experienced more among renters, where multiple renting households live in one unit to make it possible to stay in a community or near employment. Overcrowding is related to household size and the number of bedrooms per unit in the City's existing housing stock; both topics are discussed in Section 3.4.

A larger share of Santa Maria households experience overcrowding than in the overall county. In 2020, an estimated 21.7 percent of Santa Maria households were overcrowded, and 9.4 percent of households were severely overcrowded, and in the county 10.3 percent were overcrowded and

3.9 percent were severely -overcrowded.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-13

Among households in Santa Maria, those that rent are more likely to experience overcrowding than owner -occupied households. In 2020, 16.1 percent (4,498 households) of households were renter -occupied and overcrowded and 7.4 percent (2,072 households) were renter -occupied and severely -overcrowded compared to 5.6 percent (1,580 households) of households that were owner -occupied and overcrowded and two percent (560 households) of households that were owner -occupied and severely overcrowded (Figure A-10).

Figure A-10: Overcrowding by Tenure and Severity, 2020
Total Occupied Units

20.0%

15.0%

10.0%

5.0%

0.0%
Overcrowded
Severely
Overcrowded
Overcrowded
N
Severely
Overcrowded
Owner -Occupied Renter -Occupied
■ Santa Maria ❑ Santa Barbara County
Universe: Occupied housing units
The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.

Source: ACS, 5 -Year Est. 2020
A.3.4 Special Housing Needs
Certain segments of the population encounter more difficulty in finding decent, affordable housing due to special circumstances. Special needs may be related to one's employment type and income, family characteristics, medical condition or disability, or household characteristics. These households may require special accommodations, such as on -site supportive services, unique building design, or spatial accommodations. The special needs categories assessed in this section include large families, seniors, female -headed households, people with disabilities, farmworkers, and people experiencing homelessness.

Large Families
Large households (five or more persons) have different housing needs than smaller households.

Outcomes for large households in a city where housing stock lacks units with enough bedrooms, could mean overcrowded conditions or overpaying for housing. Figure A-11 shows a range of household sizes in Santa Maria by housing tenure. The most common household size consists of two people (22 percent) and the second -most common household consists of four people (17 A-14 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

percent). 29 percent of households in Santa Maria (8,124 households) are considered large households.

Adequately sized housing for large households would need to have three or more bedrooms, assuming the unit has a living room and dining room. Table A-10 shows that 60 percent (16,730 housing units) of Santa Maria's housing stock is 3 -bedroom units or larger. Therefore, Santa Maria has a sufficient number of units large enough to accommodate large households that would not resulting in overcrowding, however, the presence of adequately sized units does not necessarily mean they are affordable to large families.

Figure A-11: Santa Maria Household Size by Tenure, 2020 Total Occupied Housing Units
25%
20%
15%
10%
5%
0%
0 N
N
0 1.0
1 2
Source: ACS, 5 -Year Est. 2020
0 CO
N-
3 0
e
CD
4 5
Persons per Household
■ Owner -Occupied o Renter -Occupied
0 o
0 e
M
0 0
6 7 or more
Table A-10: Santa Maria Housing Units by Number of Bedrooms, 2020 Housing Units
%
No bedroom
856
3%
1 bedroom
2,956
11%
2 bedrooms
7,471
27%
3 bedrooms
11,999
43%
4 bedrooms
3,966
14%
5 or more bedrooms
765
3%
Total
28,013
-
Note: 15% of households are 1 -person households (see Figure A-8).

Source: ACS, 5 -Year Est. 2020
Appendix A: Demographics and Housing Needs Assessment
City of Santa Maria 1 A-15

Senior Households
Senior households (containing at least one person aged 62 or older) often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They frequently live on fixed incomes and are more likely to have disabilities, chronic health conditions, or reduced mobility.

In 2018, 60 percent of senior households (3,405 households) in Santa Maria were lower -income households, earning 80 percent of AMI or less (Table A-11). Senior households that rent are more likely to be low-income. 82 percent of senior households that rent their home are low-income compared to 51.5 percent of senior homeowners.

In Santa Maria, 40 percent of all senior households are housing cost -burdened (spending 30 percent or more on housing costs) (Table A-12). Lower -income senior households (both renters and owners) are more likely to be cost -burdened (spending 30 percent or more of their income on housing costs). In Santa Maria, 80 percent of extremely low-income senior households were cost -burdened (900 households), 54 percent of very low-income senior households were cost - burdened (635 households), and 38 percent of low-income senior households were cost - burdened (425 households).

The City has included programs in Housing Element Section IV (Housing Plan) to support the needs of lower -income senior households, including Program 2.A (Minor Home Repair Programs), Program 2.D (At -Risk Affordable Housing Units), and Program 4.A (Accommodations for Seniors and Persons with Disabilities). These programs commit the City to ongoing coordination with local non-profit organizations which serve senior households, including Community Action Partnership of SLO County, Inc. (CAPSLO), CommUnify, and SMILE Corporation.

Table A-11: Santa Maria Senior Households by Income Level and Tenure, 2018 Extremely Low (0-30% AMI)
Very Low (30-50% AMI)
Low (50-80%)
Moderate and Above
Moderate (>80% AMI)
Total
430 11% 690 43% 1120 20%
810 20% 370 23% 1.180 21%
840 21% 265 16% 1.105 20%
1,959 48% 285 18% 2.244 40%
4,039 100% 1,610 100% 5 649 100%
Note: Senior households are defined as containing at least one person aged 62 or older.

Source: HUD. Comprehensive Housing Affordability Strategy. 2018 A-16 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Table A-12: Santa Maria Cost -Burdened Senior Households by Income Level, 2018 0%-30% of
Income Used
for Housing
30%-50% of
Income Used
for Housing
50%+ o
Income Used
for Housing
Extremely Low (0-30% AMI)
Very Low (30-50% AMI)
Low (50-80%)
Moderate and Above Moderate
(>80% AMI)
220
545
680
1,940
330
280
285
220
570
355
140

1.120
1,180
1,105
84 2,244
Note: Senior households are defined as containing at least one person aged 62 or older.

Source: HUD. Comprehensive Housing Affordability Strategy. 2018 Female -headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female -headed households, who may be supporting children or a family with only one income.

Santa Maria has a higher share of female -headed households than Santa Barbara County. In 2020, 19 percent of family households in Santa Maria were female -headed, compared to 11 percent in Santa Barbara County (Table A-13).

Female -headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging. In 2020, 70 percent of Santa Maria female -headed households had children, while 66 percent of female -headed households in Santa Barbara County had children (Table A-14). Among Santa Maria female -headed households with children, 28.5 percent (1,060 households) were at or below the poverty line and 12.4 percent of female -headed households without children were at or below the poverty line in 2020 (196 households) (Table A-15).

Table A-13: Household Type, 2020
Santa Maria Santa Barbara County
Number Percent Number Percent
Family Households
Married Couple
Male Householder
Female Householder
Non -Family Households
Single -Person Households
Other Non -Family Households
14,493 52% 72,334
2,706 10% 8,734
5,298 19% 16,329
4,306 15% 35,383
1,210
4%
15,529
24%
10%
Source: ACS. 5 -Year Est. 2020
Appendix A: Demographics and Housing Needs Assessment
City of Santa Maria 1 A-17

Table A-14: Female -Headed Households (FHH), 2020
FHH w/ Children
3,718
70%

10.788
66%
FHH w/out Children
1,580
30%

5.541
34%
Source: ACS. 5 -Year Est. 2020
Table A-15: Santa Maria Female -Headed Households (FHH) At or Below the Poverty Line, 2020
Below Poverty Line
FHH w/ Children
FHH w/out Children

1.060
196
Above Poverty Line
FHH w/ Children
FHH w/out Children
2,658
1,384
Source: ACS, 5 -Year Est. 2020
Persons with Disabilities
Persons with disabilities face added challenges of finding housing that accommodate greater accessibility, mobility, and the opportunity for independence. Additionally, many individuals living with physical, cognitive, and sensory impairments, rely on fixed incomes and need specialized and costly care and medical equipment.

People are considered to have a disability if they have one or more of the following:
• Difficulty seeing or hearing, such as blindness or deafness • Difficulty performing basic physical activities, such as walking, climbing stairs, and lifting • Difficulty learning, remembering, or concentrating
• Difficulty dressing, bathing, or getting around inside the home • Difficulty going outside the home alone to shop or visit a doctor's office • Difficulty working at a job or business
People with disabilities can face many barriers to securing accessible and affordable housing, including living on fixed and limited incomes, limited housing choices offering accessibility features, higher healthcare expenses, and potential discrimination. The need for adequate and accessible housing outstrips supply and availability. The majority of housing in most communities A-18 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

lacks even basic mobility accessibility features such as ramps, extra -wide doors, raised toilets, and lowered counters.

Disability data can provide valuable context for assessing current and future needs for accessible housing units. Since some disability types are not recorded for children below a certain age, calculating disability as a percentage of the total population may not be accurate. Of the total Santa Maria population, 10,230 people (9.7 percent) have a disability of some kind (Table A-16).

The most common types of disabilities in Santa Maria in 2020 were ambulatory disabilities (5.1 percent) followed by cognitive disabilities (3.8 percent) (Figure A-12).

Understanding the employment status of people with disabilities may also be an important component in evaluating specialized housing needs. Of the City's working age population who are employed, 3 percent have a disability of some kind, where 70.5 percent do not. (Table A-17).

Table A-16: Disability Status, 2020
al 6.0%

5.0%
c

4.0%
0_co3.0%
O .°) 2.0%
Q 1.0%

0.0%
Santa Maria Santa Barbara County
Number Percent Number Percent
Has a Disability
No Disability
Total Population
10,230
94,734
104.964

9.7%

90.3%
100.0%
44,270
393,403
437.673

10.1%

89.9%
100.0%
Universe: Civilian Noninstitutionalized Population 18 to 64 Years.

Source: ACS, 5 -Year Est. 2020
Hearing
Difficulty
Figure A-12: Disability by Type, 2020
11 Vision
Difficulty
e
c rn
ri r)
1 1
e
—
O
o
N °o.
e o
co co
M r)
1 1
Cognitive Ambulatory A Self -Care Independent
Difficulty Difficulty Difficulty Living
• Santa Maria ❑ Santa Barbara County
Difficulty
Universe: Civilian Noninstitutionalized Population 18 to 64 Years.

Source: ACS, 5 -Year Est. 2020
Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-19

Table A-17: Disability Status by Employment Status, 2020 Employed
With A Disability
No Disability
Unemployed
With A Disability
No Disability
Not In Labor Force
With A Disability
No Disability
Total in the Labor Force
Total

45.310 73.6% 196,000 72.0%
1,867 3.0% 8,711 3.2%
43,443 70.5% 187,289 68.8%
2,796 4.5% 12,021 4.4%
454 0.7% 1,342 0.5%
2,342 3.8% 10,679 3.9%
13,473 21.9% 64,017 23.5%
2,665 4.3% 10,993 4.0%
10,808 17.6% 53,024 19.5%

48.106 78.1% 208.021 76.5%
61,579 100.0% 272,038 100.0%
Universe: Civilian Noninstitutionalized Population 18 to 64 Years.

Source: ACS. 5 -Year Est. 2020
State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. According to Section 4512 of the California Welfare and Institutions Code, a "developmental disability" means a disability that originates before an individual attains the age of 18 years, continues or can be expected to continue indefinitely, and constitutes a substantial disability for that individual, which includes cerebral palsy, epilepsy, and autism.

Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as a child to an appropriate level of independence as an adult.

The California Department of Developmental Services (DDS) currently provides community - based services to approximately 350,000 persons with developmental disabilities and their families through a statewide system of regional centers, developmental centers, and community - based facilities. DDS also provides data on developmental disabilities by age and type of residence. This data is collected at the ZIP -code level and joined to the jurisdiction level by SBCAG. Totals may not match as counts below 48 individuals are unavailable and some entries were not matched to a ZIP code necessitating approximation. According to DDS, there are about 1,700 residents with a developmental disability in Santa Maria, most of whom live with their parents or guardian (1,300 people) (Table A-18). The other common housing arrangements are A-20 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

independent/supported living (203 people), community care facilities (123 people), intermediate care facilities (33 people), and a foster/family home (22 people). Approximately half of Santa Maria's residents living with a developmental disability are 17 years old or younger.

Table A-18: Developmental Disability by Age and Residence, Santa Maria, 2021 By Age
17 and Under
18 and Over
By Residence
Home of Parent /Family /Guardian
Independent /Supported Living
Community Care Facility
Intermediate Care Facility
Foster /Family Home
Other
836
830
1,300
203
123
33 22
33 Source: California Department of Developmental Services. 2021 The City has included programs in Housing Element Section IV (Housing Plan) to support the needs of persons with disabilities, including Program 2.A (Minor Home Repair Programs), Program 4.A (Accommodations for Seniors and Persons with Disabilities), and Program 4.F (Zoning for Residential Care Facilities). These programs commit the City to ongoing coordination with local non-profit organizations which serve persons with disabilities, including Community Action Partnership of SLO County, Inc. (CAPSLO) and CommUnify.

Farmworkers
The California Department of Housing and Community Development (HCD) identifies farmworkers as having special housing needs due to their limited income and the unstable nature of their employment.' Farmworkers are some of the lowest -paid workers in the U.S, according to a 2021 report from The Economic Policy Institute. On average, farmworkers in 2020 earned about $14.62 per hour, "far less than even some of the lowest -paid workers in the U.S. labor force." Farmworkers are also more likely to have temporary and changing housing needs. Over the past two decades, along with efforts to assure overtime pay and a decent wage, there has been a shift to a more permanent workforce for many farms. This trend has shifted the bulk of the housing need from seasonal housing for migrant workers to permanently affordable housing for low -wage 2California Department of Housing and Community Development, Farmworkers.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-21

working families. Farmworkers commuting to their place of work often experience long commutes, 75 miles on average according to the U.S. Department of Agriculture. • The Farmworker Health Study (FWHS) survey, published in 2022, offers additional insight into the demographics, occupational risks, and health of California's farmworkers.3 This community -based study was conducted by researchers at the University of California, Merced in collaboration with farmworker-serving organizations across the State between July 2021 and April 2022. Though findings specific to Santa Maria and the surrounding region are limited, the study found the following with regard to farmworker housing statewide:
• Farmworkers interviewed were most likely to be renters (92 percent) in single-family homes (55 percent), and very few renters relied on employers to pay any or all of their rent (two percent);
• More than one-third (37 percent) reported a bad -tasting water at home, indicating poor water quality and possible health risks;
• Other substandard housing issues reported include difficulty keeping their home cool (39 percent) or warm (36 percent), rotting wood (16 percent), mold (14 percent), water damage (13 percent), water leaks (12 percent), cockroaches (24 percent), and rodents (17 percent);
• Farmworker households were larger (median 4.0 persons per households) and over one- fourth (29 percent) of farmworker households had six or more persons; and • Chronic overcrowding was indicated by more than one-fourth (25 percent) sleeping in a room with three or more persons.

In terms of regional findings, the most current data from the U.S. Department of Agriculture Census of Farmworkers shows that there was a total of 22,985 farmworkers in Santa Barbara County in 2017, and about 43 percent of farmworkers in Santa Barbara County were seasonal workers (Table A-19). Since 2012, the number of farmworkers in the county increased by 652 workers, an increase of three percent.

Although publicly available data does not provide an estimate specifically for the number of farmworkers in Santa Maria, about 22 percent of residents work in the agriculture and forestry industry according to 2020 ACS data (Figure A-7), and nearly a quarter of all jobs in Santa Maria are in the agriculture and forestry industry (Figure A-6).4 UC Merced Community and Labor Center, Farmworker Health in California. 4 The U.S. Census provides resident employment figures as combined industry categories such as agriculture and forestry, which cannot be disaggregated. In Santa Maria, most residents employed within the agriculture and forestry industry likely work in agriculture.

A-22 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

The City has included programs in Housing Element Section IV (Housing Plan) to support the needs of farmworkers, including Program 4.E (Zoning for Employee Housing) and Program 4.1 (Support for Farmworkers).

Table A-19: Santa Barbara County Total Farms and Farmworkers, 2017 Farms
Workers
Permanent
Seasonal
Total
941
13,090
9,895
22,985
Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors)
Note: Farmworkers are considered seasonal if they work on a farm for less than 150 days in a year, while farmworkers who work on a farm for more than 150 days are considered to be permanent workers for that farm.

Source: USDA Census of Farm Workers, 2017
Extremely Low -Income Households
Extremely low-income households often face housing challenges such as overpayment, eviction, and finding suitable, affordable housing. Households earning 30 percent or less of the AMI are considered extremely low-income. These households typically include seniors on fixed -incomes, persons with disabilities, farmworkers, and low -wage workers.

There are 3,705 extremely low-income households in Santa Maria, which account for 13 percent of the total households in the City (Figure A-9). 80.6 percent (2,985 households) of extremely low- income households are cost -burdened, and 62.5 percent (2,315 households) are severely -cost burdened (Table A-28).
20 percent (2,820 households) of renter households in Santa Maria are extremely low-income, and 6.5 percent (885 households) of households that own their home are extremely low-income.

Among extremely low-income renter households, 82 percent (2,325 households) are cost - burdened and 65 percent (1,820 households) are severely cost -burdened. Among extremely low- income households that own their home, 74 percent (655 households) are cost -burdened and 56 percent (495 households) are severely cost -burdened.

From 2012 to 2018, the number of cost -burdened extremely low-income renter households decreased by 11.9 percent (315 households) and the number of cost -burdened extremely low- income households that own their home decreased by 13.2 percent (100 households).

26.6 percent (750 households) of extremely low-income renter households, are overcrowded and

12.2 percent (345 households) are severely overcrowded. Among extremely low-income Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-23

households that own their home, 6.8 percent (60 households) are overcrowded and 3.4 percent (30 households) are severely overcrowded.

From 2012 to 2018, the number of overcrowded extremely low-income renter households decreased by 2 percent (15 households) and the number of overcrowded extremely low-income households that own their home decreased by 7.7 percent (5 households).

While the number of extremely low-income households that are cost burdened or overcrowded has decreased, there is still a substantial housing need for housing affordable to extremely low- income households. Therefore, the City has included programs in Housing Element Section IV (Housing Plan) to support the needs of extremely low-income households, including Program 4.A (Accommodations for Seniors and Persons with Disabilities), Program 4.B (Supportive Housing for Homeless Persons), Program 4.D (Zoning for Transitional and Supportive Housing), and Program 4.H (Housing for Extremely Low -Income Households). These programs commit the City to outreach and coordination with non-profit housing developers and religious institutions, as the granting of incentives and concessions to housing developments that include units affordable to extremely low-income households. The City has a quantified objective of 516 new units affordable to extremely low-income households by 2031 (see Housing Element Section IV.C, Table IV -2).

Residents Living Below the Poverty Line
The Federal Poverty Level is an estimate of the minimum annual income a household would need to pay for essentials, such as food, housing, clothes, and transportation. This level considers the number of people in a household, their income, and the state in which they live.

For individuals living below the poverty level, housing stability can be precarious as their low incomes make them very high risk for homelessness. In 2020, 12.7 percent of Santa Maria residents were below the poverty line, which was comparable to the share of residents in Santa Barbara County where 12.9 percent of residents were below the poverty line (Table A-20). In Santa Maria, Hispanic or Latino residents experience the highest poverty rate. 13.9 percent of Santa Maria residents who identify has Hispanic or Latino earn incomes below the poverty line.

White residents experience the next highest rate of poverty (13 percent), followed by residents who identify as "other race" (12.6 percent) (Figure A-13). As mentioned previously, female - headed households with children experience poverty at a disproportionate rate than those without children or the overall population. Among Santa Maria families experiencing poverty, nearly half (47 percent) are female -headed households (Table A-15).

A-24 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Table A-20: Residents Below the Poverty Line, 2020
a 25.0%
0 L

20.0%
L

15.0%
0 c 10.0%
r-+
-a 5.0%o
.7)
a)
0 0.0%
Santa Maria Santa Barbara County
Number Percent Number Percent
Below Poverty Line
At or Above Poverty Level
13,213
90,778

12.7%

87.3%
54,621
369,945

12.9%

87.1%
Universe: Population for whom poverty status is determined.

Source: ACS, 5 -Year Est. 2020
Figure A-13: Residents Below the Poverty Line by Race and Ethnicity, 2020 O
M U)
1 1
0)
O
O
White Black or African Asian
American
■ Santa Maria ❑ Santa Barbara County
Universe: Population for whom poverty status is determined.

Source: ACS, 5 -Year Est. 2020
I
Other Race
O)
M
Hispanic or
Latino
People Experiencing Homelessness
People experiencing homelessness are among the most vulnerable groups. Homelessness can result from a wide range of factors, such as housing unaffordability, job loss, and lack of services and treatment for mental illness and/or substance abuse. Despite the variety of causes, the provision of affordable housing, especially subsidized units for single individuals, can greatly contribute to the long-term solution of addressing homelessness.

Because of the precariousness of the lives of those experiencing homelessness, the count of these individuals can vary over the year and over extended periods of time. According to the most recent Point -in -Time (PIT) count estimate, there were an estimated 1,962 persons experiencing homelessness across Santa Barbara County in 2022. 1,373 people experiencing homelessness were sheltered, and 589 were unsheltered (Table A-21). Since 2019, the estimated number of people experiencing homelessness in Santa Barbara County increased by 159 individuals, an increase of nine percent.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-25

83 percent of individuals experiencing homelessness in Santa Barbara County identified as White, eight percent identified as Black or African -American, four percent identified as two or more races, three percent identified as American Indian or Alaska Native, one percent identified as Asian, and one percent identified as Native Hawaiian or other Pacific Islander. 62 percent of Santa Barbara County residents experiencing homelessness identified as Non -Hispanic, and 38 percent identified as Hispanic.

In 2022, there were an estimated total of 457 residents experiencing homelessness in Santa Maria. 160 people experiencing homelessness were sheltered, and 297 were unsheltered.

Table A-21: People Experiencing Homelessness, 2022
City of Santa Santa Barbara
Maria County
Sheltered
Unsheltered
Total
160
297
457
1,373
589
1, 962
Source: Santa Barbara County. 2022
Emergency Shelters/Transitional Housing
Emergency shelters and transitional housing facilities for domestic violence victims and formerly homeless individuals and families located in Santa Maria are listed in Table A-22. The Governmental Constraints section (Appendix C) discusses how the City's zoning code permits emergency shelters. Programs are included in Housing Element Section IV, Housing Plan to address emergency shelters and low barrier navigation centers consistent with state law (Program

4.B; Program 4.C; Program 4.D).

A-26 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Table A-22: Santa Maria Homeless Facilities, 2022
Facility Name
Central Coast Rescue Mission
Address
Type of Shelter
Emergency shelter for homeless single men
Capacity
(beds)
6 1207 North McClelland
Street
County of Santa Barbara North
County Youth Shelter Care
Program
Communitywide
Emergency shelter for runaway, abused, or
at -risk youth, ages 10-17
3 Domestic Violence Solutions
Emergency Shelter
Confidential Location
Emergency shelter for battered women and
their children
19 Domestic Violence Solutions
Mariposa House
Confidential Location
Transitional housing for battered women and
their children
40 Good Samaritan Shelter
401 "A" West Morrison
Avenue
Transitional shelter for homeless families
56 Good Samaritan Shelter
401 "C" West Morrison
Avenue
Emergency shelter for homeless families and
individuals
90 Good Samaritan Shelter Detox
401 "B" West Morrison
Avenue
Emergency shelter and acute care for acutely
ill, chemically dependent homeless adults
12 Good Samaritan Shelter
Overflow Shelter
401 "D" West Morrison
Avenue
Dining Room / Overflow shelter for homeless
families
40 Good Samaritan Shelter Sober
Living Homes
1833 Elmwood Drive
1404 N. Lincoln Street
Transitional housing for chemically
dependent homeless adults
16 Transitional Center for Women
& Children (TC House I)
412 "A" East Tunnell
Street
Transitional housing for women and their
children
16 Transitional Center for Women
& Children (TC House II)
412 "B" East Tunnell
Street
Transitional housing for women and their
children
22 Total Beds:
320
Source: City of Santa Maria. 2022
Resources for People Experiencing Homelessness
The Santa Maria/Santa Barbara County Continuum of Care (CoC), coordinates housing and services funding for individuals and families experiencing homelessness. The CoC is responsible for outreach, intake, and assessment of service and housing needs, providing immediate and safe alternatives to sleeping on the streets, facilitating access for individuals and families to transitional housing with supportive services, and ensuring that individuals and families have access to affordable, permanent housing. Additionally, the CoC is responsible for tracking and managing the population of people experiencing homelessness.

Additionally, the City has included programs in Housing Element Section IV (Housing Plan) to support the needs of people experiencing homelessness, including Program 4.B (Supportive Housing for Homeless Persons), Program 4.0 (Zoning for Low Barrier Navigation Centers and Emergency Shelters), and Program 4.D (Zoning for Transitional and Supportive Housing).

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-27

Non-English Speakers
California has long been an immigration gateway to the United States, which means that many languages are spoken throughout the State. Since learning a new language is universally challenging, it is not uncommon for residents who have immigrated to the United States to have limited English proficiency. This limit can lead to additional disparities if there is a disruption in housing, such as an eviction because residents might not be aware of their rights or they might be wary to engage due to immigration status concerns.

Santa Maria has a large number of residents five years of age and older who identify as either speaking English "not well" or "not at all" (38 percent) in comparison to Santa Barbara County (27 percent) (Table A-23). 24 percent of Santa Maria residents identify as not speaking any English, while 13 percent of Santa Barbara County fall in the same category.

Table A-23: Non-English Speakers, 2020
Santa ' aria anta Barbara County
Number Percent Number Percent
Speak English "Very Well"
Speak English "Well"
Speak English "Not Well"
Speak English "Not At All"
Total Non-English Speakers
30,866
7,524
8,450
14,988
61,828
50%
12%
14%
24%
100%
97,621
24,892
23,321
21,403
167,237
Universe: Population 5 years and over.

Source: ACS, 5 -Year Est. 2020
Childcare
Since the early 1990's the City of Santa Maria's zoning ordinance has permitted large and small `family day care homes' to be operated out of private residences in the residential zone districts.

The Santa Barbara County Child Care Planning Council (CCPC) prepared a set of policy recommendations to improve access to childcare in proximity to housing. CCPC notes the importance of childcare for working families and special populations, such as single -parents and female -headed households, in particular, and how Cities can support the development of childcare facilities by ensuring their regulations and polices are in alignment with State law.

Recognizing the value of childcare to the City's residents, a program is included in Housing Element Section IV, Housing Plan to ensure the City's ordinance and permitting policies are consistent with the current provisions of state law governing Family Day Care Homes for Children. (Program 4.G).

A-28 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Section A.4 Housing Stock Characteristics
A.4.1 Housing Type and Vacancy
Table A-24 provides information on the housing stock in Santa Maria, which has a total of 30,766 housing units. From 2000 to 2021, housing unit growth in Santa Maria increased at a faster rate (35 percent) than in Santa Barbara County (14 percent). The most common housing type in Santa Maria is single-family (attached and detached), which comprises 66 percent of the city's housing stock (Figure A-14). In Santa Barbara County, 64 percent of housing units are single-family (attached and detached).

Table A-24: Total Housing Units, 2000 to 2021
Occupied Housing Units
70%
60%
50%
40%
30%
20%
10%
0%
2000 2021 Change 2000-2021
Number Number Number Percent
Santa Maria
22,847
30,766
7,919
35%
Santa Barbara County 142,901 162,547 19,646 14%
Source: CA DOF E-4, E-5 Population and Housing Unit Estimates, 2021 Figure A-14: Housing Unit Type, 2021
0 c (.1
N
e 0 O
In ti LO LO
_W -
Single -Family Single -Family Multi -Family, 2-4 Multi -Family, 5+ Mobile Homes Detached Attached Units Units
• Santa Maria ❑ Santa Barbara County
Source: CA DOF E-4, E-5 Population and Housing Unit Estimates, 2021 Over the past two decades, more single-family residential units have been constructed than multi- family residential units in Santa Maria and Santa Barbara County, but the addition of multi -family units has increased at a faster pace. From 2000 to 2021, Santa Maria added 4,901 single-family units, which represents an increase of 32 percent in the City's single-family housing stock (Figure A-15). During the same period Santa Barbara County's single-family housing stock increased by 13 percent (Figure A-16). Between 2000 to 2021, Santa Maria added 3,044 multi -family units, an Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-29

increase of 50 percent in the total number of multi -family units in the City. The number of multi- family units between 2000 and 2021 increased by 19 percent in Santa Barbara County.

Figure A-15: Single -Family and Multi -Family Units, Santa Maria, 2000 to 2021 Housing Units
25,000
20,000
15,000
10,000
5,000
0 20,117
9,103
00 O^ Off' 00 Ob` 00 OCo O\ 6b o' ^O '^ Ni/ ^O '� ^O ^O '� i\O t Cb Single -Family —Multi-Family
Source: CA DOF E-4, E-5 Population and Housing Unit Estimates, 2021 Housing Units
Figure A-16: Single -Family and Multi -Family Units, Santa Barbara County, 2000 to 2021 120,000
100,000
80,000
60,000
40,000
20,000
0 104,815
49,563
00 O\ O1' 00 6(0 OcO 00 00 „O '� Net, �O '�` '�� ,NO �� O NO �O �.^ (O rO rO (O rO �O � �O �O �O �O �O �O IO e r r �O �O �O �O Single -Family Multi -Family
Source: CA DOF E-4, E-5 Population and Housing Unit Estimates, 2021 A-30 I City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Of the total housing units in Santa Maria, 26,612 are occupied, which results in a vacancy rate of 4.2 percent. Owner -occupied units have a lower vacancy rate than rental units in Santa Maria and the county. In 2020, the Santa Maria and Santa Barbara County homeowner vacancy rate was 0.7 percent and the rental vacancy rate was 2.7 percent (Table A-25).

Table A-25: Vacancy Rate by Tenure, 2020

40.0%

35.0%
cn

30.0%

25.0%
C

20.0%
> 15.0%

10.0%

5.0%

0.0%
Overall Homeowner Rental
Vacancy Rate vacancy rate vacancy rate
Santa Maria
Santa Barbara County

4.2%

6.9%

0.7%

2.7%

2.7%
Source: ACS, 5 -Year Est. 2020
0 N
M
0 co
For Rent
Figure A-17: Vacancy by Type, 2020
co.
o � o
co o
o
Rented, Not For Sale
Occupied Only
Zr
N
Co
M
96*-?.
c
I
co
N
i
co
N
Sold, Not For For Migrant Other
Occupied Seasonal/ Workers Vacant
Recreational
• Santa Maria Santa Barbara County
Note: "Other Vacant" includes units that do not fall into any of the categories specified in the figure. For example, includes units held by the owner who does not want to rent or sell the unit or is using the unit for storage. Other reasons may include that the unit is being held for settle of an estate, is being repaired or renovated, or is being foreclosed (although foreclosures may appear in any of the cant or occupied categories).

Source: ACS, 5 -Year Est. 2020
A.4.2 Housing Tenure
Housing security can depend heavily on housing tenure (i.e., whether homes are owned or rented).

In addition, lower -income rental households tend to experience a higher degree of housing problems as defined by the Census, such as overpaying, overcrowding, and substandard housing.

Renters are also more economically vulnerable than homeowners, as renters do not build equity through asset ownership like homeowners do. Communities with higher rental populations should therefore consider the unique needs of renters versus owners.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-31

Of Santa Maria's total housing stock, 50 percent are owner -occupied and 50 percent are renter - occupied (Figure A-18). Santa Maria has a slightly higher share of renters than Santa Barbara County and a slightly lower share of homeowners than the county. As discussed previously in this report, residents earning moderate to above moderate -income (at or above 80 percent AMI) are more likely to be homeowners than renters (Figure A-11).

Figure A-18: Housing Tenure, 2020
Occupied Housing Units
53%
52%
51%
50%
49%
48%
47%
46%
45%
50%
1 Source: ACS. 5 -Year Est. 2020
52%
50%
•
48%
1 Owner -Occupied Renter -Occupied
Santa Maria Santa Barbara County
Figure A-19 shows a range of household types in Santa Maria by the share of renters versus homeowners. Most single-family detached homes (71 percent) are owner -occupied, while multi- family units are overwhelmingly occupied by renters. In 2020, 86 percent of multi -family units in buildings with 2 to 4 units were renter -occupied and 96 percent of multi -family units in developments with five or more units were renter -occupied. Mobile homes also have a higher rate of homeowners (69 percent) versus renters (31 percent).

Figure A-20 shows that in Santa Maria there is a higher rate of homeownership among older residents than younger residents. In 2020, 79 percent of residents between the ages of 65 to 84 were homeowners, and 59 percent of residents 85 years and older were homeowners. Most residents between the ages of 15 to 44 rented their home. 95 percent of householders aged 15 to 24 years were renters, 70 percent of those ages 25 to 34 were renters, and 62 percent of householders aged 35 to 44 were renters.'
' Householder includes the person, or one of the people, in whose name the home is owned, being bought, or rented.

A-32 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Figure A-19: Tenure by Housing Type, 2020
Occupied Units by Type
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
29%
71%
14%
96%
- 4%
31%
69%
Single -Family Single -Family Multi -Family, 2-4 Multi -Family, 5+ Mobile Homes Detached Attached
Source: ACS, 5 -Year Est. 2020
Occupied Units by Age Group
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Units
Units
• Owner -Occupied ❑ Renter -Occupied
Figure A-20: Tenure by Age of Householder, Santa Maria, 2020 30%
38%
44%
41%
!RIF
21%
79%
1 15 to 24 25 to 34 35 to 44 45 to 54 55 to 59 60 to 64 65 to 74 75 to 84 85 Years Years Years Years Years Years Years Years Years and Over • Owner -Occupied ❑ Renter -Occupied
Source: ACS, 5 -Year Est. 2020
A.4.3 Housing Units Permitted
From 2015 to 2020, Santa Maria permitted a total of 2,239 units, the majority of which were for moderate and above moderate -income households (Figure A-21; Table A-26). The total number of very low and low-income housing units permitted increased from 86 units in the years 2015 through 2017 to 511 units in the years between 2018 and 2020.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-33

Figure A-21: Housing Units Permitted, Santa Maria, 2015 to 2020 Units Permitted
400
350
300
250
200
150
100
50 0
286
150
1 0 0
2015
27 1
2016
59 14
191
0 0
391
25— 127 115
1A0
2017 2018
252
208
146
92 4
11 2019
26 26—
• 0MI_
2020
■ Very Low Income Low Income • Moderate Income •Above Moderate Income Source: HCD, 2022
Table A-26: Total Housing Units Permitted, Santa Maria 2015 to 2020 Total
Very Low Income
Low Income
Moderate Income
Above Moderate Income 859
57 540
783
Total 2,239
Source: HCD, 2022
A.4.4 Housing Age and Condition
The age of housing stock is a key indicator of the community's overall housing condition. As homes get older, there is a greater need for maintenance, repair, or replacement of key infrastructure systems. If not properly addressed, an aging housing stock can represent poorer living standards, incur more expensive repair costs, and lower overall property values under certain conditions.

Santa Maria's housing stock is somewhat younger than housing across Santa Barbara County. 15 percent of all units in Santa Maria were built before 1960, compared to 24 percent of units in Santa Barbara County, and 35 percent of Santa Maria units were built between 1960 and 1979 compared to 38 percent of units during this period in the county (Figure A-22). 21 percent of housing units in Santa Maria were built after 2000, while 12 percent have been built since the year 2000 in the county.

A-34 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Figure A-22: Housing Units by Year Built, 2020
Housing Units
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
'
v
N
I
0 M
CO
M
i
0 co
Built Before Built 1960 to Built 1980 to Built 2000 to Built 2010 or 1960 1979 1999 2009 Later
■ Santa Maria r Santa Barbara County
Source: ACS, 5 -Year Est. 2020
Substandard Housing
In areas with high or rapidly increasing housing costs, some households may only be able to afford housing that is in substandard condition. The Census tracks three housing conditions related to substandard housing: a lack of complete kitchen facilities, a lack of complete bathroom facilities, and a lack of telephone service. In Santa Maria, rented units are more likely to be in substandard condition (Figure A-23). Among renter -occupied housing units, 0.4 percent (114 units) lack telephone service, 0.1 percent (18 units) lack plumbing facilities, and 0.6 percent (176 units) lack complete kitchen facilities. Among owner -occupied housing units in Santa Maria, 0.3 percent (78 units) lack telephone service, 0.02 percent (6 units) lack plumbing facilities, and 0.1 percent (41 units) lack complete kitchen facilities.

Housing Units
200
180
160
140
120
100
80 60
40 20
0 Figure A-23: Substandard Housing, Santa Maria, 2020
CO
Lacking Plumbing Facilities
Source: ACS, 5 -Year Est. 2020
CO
CO
ti
Lacking Complete Kitchen No Telephone Service
Facilities Available
• Owner -Occupied ❑ Renter -Occupied
Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-35

In August 2022, four apartment buildings containing a total of over 230 units were being rehabilitated under active City -issued building permits. Since 2014, 624 code enforcement cases regarding substandard housing conditions have been filed with the City. These cases related to Substandard Housing and Health & Safety violations which range from lack of water and or heat, the presence of mold, a pest infestation, and general dilapidation. The City works diligently with property owners to address these issues and currently (September 2022) has 20 active cases related to substandard housing conditions.

The City's Community Development Department staff estimate that during any one year an average of between 9 to 15 residential units in Santa Maria require major rehabilitation. This estimate is based on the Code Enforcement and Building Division staff's processing of code compliance cases and familiarity with Santa Maria neighborhoods and buildings. The City will continue to implement its code inspection and enforcement program to address substandard housing conditions (Program 2.C).

Section A.5 Housing Costs and Affordability
A.5.1 Ownership Costs
Home prices are impacted by several key factors, including fluctuations in interest rates, overall health of the economy, available government subsidies or policies, and, historically, community demographics. The American Community Survey and private real estate companies such as Redfin provide publicly available data on home prices. The estimates from these sources vary due to the difference in methods used. The American Community Survey data consists of self - reported estimates from homeowners of what the price would be if their home were for sale, while Redfin data represents listed home prices sourced from the company's real estate website.6 According to both data sources, home prices are generally less expensive in Santa Maria compared to Santa Barbara County, but home prices have been increasing somewhat more quickly in Santa Maria. Figure A-24 shows data from the 2012 to 2020 American Community Survey 5 -Year Estimates. The graph shows that in 2020 the median home price in Santa Maria was $359,700 compared to $610,000 in Santa Barbara County (Figure A-24). From 2012 to 2020, Santa Maria's median home price increased by 34.6 percent while the price in Santa Barbara County increased by 26.5 percent. Redfin data provides more recent estimates, and Figure A-25 shows that as of March 2022, Santa Maria's median home price was $560,667 and the Santa 6 There is a difference of $85,383 between the 2020 ACS median home price estimate of $359,700 and the 2020 Redfin median home price estimate of $445,083.

A-36 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Barbara County home price was $845,000. From 2012 to 2022, Redfin data shows that the median home price increased by 158 percent in Santa Maria and 142 percent in Santa Barbara County.

Figure A-24: American Community Survey Median Home Sales Price, 2012 to 2020 Median Home Sales Price
$700,000
$600,000
$500,000 $482,400
$400,000
$300,000 $267,200
$200,000
$100,000
$-
$610,300
$359,700
2012 2013 2014 2015 2016 2017 2018 2019 2020
—Santa Maria Santa Barbara County
Source: ACS, 5 -Year Est. 2012 to 2020.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria I A-37

Median Home Sales Price
Figure A-25: Redfin Median Home Sales Price, 2012 to 2022 $900,000 $845,000
$800,000
$700,000
$600,000 $560,667
$500,000
$400,000
$300,000
$200,000 $217,091
$100,000
$-
$348,636
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Santa Maria Santa Barbara County
Source: Redfin. March 2022
A.5.2 Rental Costs
Like home values, rents have also increased dramatically across Santa Barbara County in recent years. Rising home costs may result in renters, particularly communities of color, being priced out, evicted, or displaced. Residents finding themselves in one of these situations may have had to choose between commuting long distances to their jobs and schools or moving out of the County, and or even the State.

Santa Maria rents are lower than rents in Santa Barbara County. According to data from the American Community Survey, the 2020 median rent was $1,380 in Santa Maria and $1,596 in Santa Barbara County (Figure A-26). 3.4 percent of rental units in Santa Maria rented for $2,500 or more per month compared to 13.9 percent of units in Santa Barbara County (Table A-27).

Unlike home values, rents in Santa Maria have increased at a somewhat slower rate than in Santa Barbara County. From 2010 to 2020, rents in Santa Maria increased by 35.1 percent while rents in Santa Barbara County increased by 42.2 percent.

Since U.S. Census data often lags market rates, rental data from Apartments.com and Zillow was obtained to provide more current market rates. After the spike in California home and rental costs in the fall of 2022, data from Apartments.com shows that the May 2023 average monthly rent price for all unit types decreased to approximately $2,065 in Santa Maria, and according to Zillow, April 2023 median monthly rents were approximately $2,591 in Santa Maria and $3,525 in Santa Barbara County.

A-38 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Barbara County home price was $845,000. From 2012 to 2022, Redfin data shows that the median home price increased by 158 percent in Santa Maria and 142 percent in Santa Barbara County.

Appendix A: Demographics and Housing Needs Assessment City of Santa Maria I A-37

Figure A-26: Median Rent, 2010 to 2020
$1,600 $1,596
Rental Cost
$1,500
$1,400 $1,380
$1,300
$1,200
$1,181
$1,100
$1,000
$900 $970
$800
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Santa Maria Santa Barbara County
Source: ACS, 5 -Year Est. 2010 to 2020.

Table A-27: Contract Rents for Renter -Occupied Units, 2020 Santa Maria
Santa Barbara
County
Cost of Rent
Number of
Contracts
Percent
Number of
Contracts
Percent
> $500
862

6.2%
3,284

4.6%
$500 to $999
1,995

14.5%
9,457

13.4%
$1,000 to $1,499
5,309

38.2%
17,809

25.2%
$1,500 to $1,999
4,214

30.3%
18,692

26.4%
$2,000 to $2,499
842

6.1%
9,166

12.9%
$2,500 to $2,999
252

1.8%
4,724

6.7%
$3,000 to $3,499
113

0.8%
2,678

3.8%
$3,500 or more
116

0.8%
2,450

3.5%
No Cash Rent
202

1.5%
2,545

3.6%
Note: "No Cash Rent" includes units occupied without payment of cash rent.

Source: ACS, 5 -Year Est. 2020
Appendix A: Demographics and Housing Needs Assessment
City of Santa Maria 1 A-39

A.5.3 Overpayment
A standard measure of housing affordability compares the cost of market -rate housing to the price residents can afford to pay for housing based on their income levels. State and federal standards specify that households spending more than 30 percent of gross annual income on housing are considered to have a housing cost burden. Severe overpaying occurs when households pay 50 percent or more of their gross income for housing. When a household is overpaying for housing costs, the household has less disposable income for other necessities, including health care, food, and clothing. In the event of unexpected circumstances, such as loss of employment and health problems, lower -income households with burdensome housing costs are more likely to become homeless or to live with other households.

Santa Maria and Santa Barbara County residents experience housing overpayment at a similar rate. In 2018, around 40 percent of Santa Maria and Santa Barbara County households were cost -burdened (Figure A-27).

Renters are typically more often cost -burdened than owners. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases. Data for cost - burdened households by tenure in Santa Maria shows that 30 percent of renter households (4,180 households) spend 30 to 50 percent of their income on housing compared to 17 percent of households that own their home (2,315 households) (Figure A-28). Additionally, 24 percent of renter households (3,310 households) spend 50 percent or more of their income on housing, while 10 percent of home -owner households (1,430 households) are severely cost -burdened.

Rates of cost burden vary greatly across income categories and lower -income households are more likely to be housing cost -burdened than higher -income households. Among low-income Santa Maria households (earning 80 percent of AMI or less) 65 percent (9,645 households) are cost -burdened, and 31 percent (4,640 households) are severely cost -burdened. 80.6 percent (2,985 households) of Santa Maria households making less than 30 percent of AMI spent are cost -burdened, and 62.5 percent (2,315 households) are severely -cost burdened. While just 0.2 percent of residents making more than 100 percent of AMI were severely cost -burdened (Table A-28). As mentioned previously in the report, lower -income seniors are also more likely to be cost - burdened and 80 percent of Santa Maria senior households making less than 30 percent of AMI spent were severely cost -burdened (Table A-12).

When comparing low-income Santa Maria households that rent and own their home, renters are still typically more often cost -burdened. 70.6 percent of low-income renter households (6,960 households) are cost -burdened, and 33 percent (3,255 households) are severely cost -burdened, while 54.7 percent (2,680 households) of low-income households that own their home are cost - burdened, and 28.3 percent (1,385 households) are severely cost -burdened.

A-40 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Figure A-27: Cost Burden Severity, 2018
% Households
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
17%
58%
Santa Maria
1%
1%
Santa Barbara County
% of Household Income Spent on Housing:
■ 30% or Less More than 30% and Less than 50% ■ 50% or More • Data N/A Note: Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost -burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost -burdened households are those whose monthly housing costs exceed 50% of monthly income.

Source: HUD CHAS, 2018
Appendix A: Demographics and Housing Needs Assessment City of Santa Maria I A-41

Figure A-28: Cost Burden by Tenure, 2018
Households
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
10%
72%
Owner -Occupied
1%
24%
45%
Renter -Occupied
1%
of Household Income Spent on Housing:
• 30% or Less ❑ More than 30% and Less than 50% • 50% or More • Data N/A Note: Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost -burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost -burdened households are those whose monthly housing costs exceed 50% of monthly income.

Source: HUD CHAS, 2018
Table A-28: Cost Burden by Income, 2018
Households by Share
of Income Spent
on Housing Cost
Income
50%
100% HAMFI

93.4%

6.4%

0.2%
Note: HAMFI refers to Housing Urban Development Area Median Family Income.

Source: HUD CHAS, 2018
Housing Costs Compared to Ability to Pay
The ability to pay for housing is a function of housing costs and other essential living expenses relating to household income. Given market conditions, above -moderate income households have less difficulty locating affordable units, affordable units are frequently defined as those reasonably priced for households that are low- to moderate -income.

A-421 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Table A-29 shows the 2021 income limits for Santa Barbara County and compares these income limits to affordable (no more than 30 percent of gross income) rent and purchase prices. The 2020 median rent in Santa Maria of $1,380 (shown previously in Figure A-27) is generally affordable for three -person households earning 30 to 50 percent of the Santa Barbara County AMI. The 2020 American Community Survey Santa Maria home value estimate of $359,700 is generally affordable for low-income households (earning 50 to 80 percent of the county AMI) of any size with a down payment of 20 percent, and the 2022 Redfin median home sales price estimate of $560,667 is generally affordable to a two -person household earning between 120 and 150 percent of the Santa Barbara County AMI with a 20 percent down payment.

Table A-29: Santa Barbara County Ability to Pay for Housing for Extremely Low, Very Low, Low, Moderate, and Above Moderate -Income Households and Fair Market Rents, 2022 Number of Persons
1 2
in Household
3 4
Extremely Low (0-30% AMI)
Annual Income Limit
S26,250
$30,000
$33,750
S37,450
Monthly Income
$2,188
$2,500
$2,813
$3,121
Max. Monthly Gross Rent1
$656
$750
S844
$936
Max. Purchase Price 5% down2
S117,237
S133.985
S150.733
S167,258
Max. Purchase Price 20% down3
S139,185
S159.068
S178.952
S198,570
Very Low (30-50% AMI)
Annual Income Limit
$43,750
S50,000
S56,250
S62,450
Monthly Income
$3,646
$4,167
$4,688
S5,204
Max. Monthly Gross Rent'
$1,094
$1,250
$1,406
$1,561
Max. Purchase Price 5% down2
$195,395
$218,838
$246,193
S273,324
Max. Purchase Price 20% down3
5231,975
5265,114
$298,253
S331,127
Low (50-80% AMI)
Annual Income Limit
$70,050
S80,050
S90,050
$100,050
Monthly Income
$5,838
$6,671
$7,504
$8,338
Max. Monthly Gross Rent'
$1,751
$2,001
$2,251
$2,501
Max. Purchase Price 5% down2
$312,855
$357,517
$402,179
S446,840
Max. Purchase Price 20% down3
$371,425
$424,447
$477,470
S530,493
Median (100% AMI)
Annual Income Limit
$63,050
$72,100
$81,100
$90,100
Monthly Income
$5,254
$6,008
$6,758
$7,508
Max. Monthly Gross Rent'
$1,576
$1,803
$2,028
$2,253
Max. Purchase Price 5% down2
$281,592
5322,011
S362.207
S402,402
Max. Purchase Price 20% down3
S334,309
5382,294
S430.015
S477,735
Appendix A: Demographics and Housing Needs Assessment
City of Santa Maria 1 A-43

Number of Persons in Household
1 2
3 4
Moderate (80-120% AMI)
Annual Income Limit
$75,650
$86,500
$97,300
$108,100
Monthly Income
$6,304
$7,208
$8,108
$9,008
Max. Monthly Gross Rent'
$1,891
$2,163
$2,433
$2,703
Max. Purchase Price 5% down2
$337,866
$386,324
$434,559
$482,793
Max. Purchase Price 20% down3
$401,117
$458,647
$515,912
$573,176
120-150% of AMI
Annual Income Limit
$94,575
$108,150
$121,650
$135,150
Monthly Income
$7,881
$9,013
$10,138
$11,263
Max. Monthly Gross Rent'
$2,364
$2,704
$3,041
$3,379
Max. Purchase Price 5% down2
$422,388
$483,016
$543,310
$603,603
Max. Purchase Price 20% down3
$501,463
$573,441
$645,022
$716,603
150-180% of AMI
Annual Income Limit
$113,490
$129,780
$145,980
$162,180
Monthly Income
$9,458
$10,815
$12,165
$13,515
Max. Monthly Gross Rent1
$2,837
$3,245
$3,650
$4,055
Max. Purchase Price 5% down2
$506,866
$579,620
$651,972
$724,324
Max. Purchase Price 20% down3
$601,756
$688,130
$774,027
$859,924
180-200% of AMI
Annual Income Limit
$126,100
$144,200
$162,200
$180,200
Monthly Income
$10,508
$12,017
$13,517
$15,017
Max. Monthly Gross Rent'
$3,153
$3,605
$4,055
$4,505
Max. Purchase Price 5% down2
$563,184
$644,022
$724,413
$804,804
Max. Purchase Price 20% down3
$668,617
$764,589
$860,030
$955,471
' 30% of income devoted to maximum monthly rent or mortgage payment, including utilities, taxes, and insurance 2 Assumes 95% loan (i.e., 5% down payment) @ 3% annual interest rate and 30 -year term 3Assumes 80% loan (i.e., 20% down payment) @ 3% annual interest rate and 30 -year term Source: LWC, 2022
A.5.4 At -Risk Housing Assessment
As part of each housing element update, state law requires jurisdictions to identify low-income assisted rental housing units that are at risk of conversion to market rate housing during the next 10 -year period. For the purpose of this section, assisted housing means multifamily rental housing that receives governmental assistance under federal programs listed in California Government Code §65863.10(a), state and local multifamily revenue bond programs, local redevelopment A-44 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

programs, the federal Community Development Block Grant Program, and local in -lieu fees, and multifamily rental units that were developed pursuant to a density bonus pursuant to California Government Code §65916.

There is only one development that is at risk of conversion to market rate status during the 2023- 2033 period. This development is New Visions, a 6 -unit Senior facility at 1106 N. School St. operated by SMILE Housing Corporation of Morro Bay, an affordable housing provider and registered non-profit which was started in 1989. The New Visions expiration of affordability is on March 1, 2032, and according to Danielle M. Mazzella, Senior Research Manager at California Housing Partnership, this development is considered a moderate risk of conversion.

Table A-30: Assisted Units at Risk of Conversion
Risk Level for Conversion
Number of Units
Low Risk
1,771
Moderate Risk
6 High Risk
0 Very High Risk
0 Total Assisted Units in Database
1,777
Notes:

Very -High Risk: affordable homes that are at- risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission -driven developer.

High Risk: affordable homes that are at -risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission -driven developer.

Moderate Risk: affordable homes that are at -risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission -driven developer.

Low Risk: affordable homes that are at- risk of converting to market rate in 10+ years and/or are owned by a large/stable non-profit, mission -driven developer.

Source: California Housing Partnership, 2022
A 2020 study by U.C. Berkley's Terner Center for Housing Innovation ("The Costs of Affordable Housing Production: Insights from California's nine percent Low -Income Housing Tax Credit Program") 7 cites the 2019 total average development costs under California's Low -Income Housing Tax Credit program as $480,000 per affordable unit. Using this estimated cost, the total replacement cost of the six senior units of the New Visions facility would be just below 3 million dollars. However, in July 2022, the City spoke with the Chief Financial Officer of Smile Corporation, Martha Jones, who related that SMILE Corporation intends to continue to provide affordable housing, which is their target mission as an affordable housing provider, at all their facilities including New Visions location 'far into the future'. Therefore, the City's expectation is that these units will not be converted to market rate units in the future. https://ternercenter.berkeley.edu/research-and-policy/development-costs-lihtc-9-percent-california/ Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-45

The construction of new affordable housing projects is recognized as significantly more expensive than the cost of preservation of exiting units. Where new project costs include expenses such as land acquisition, design development, permitting, construction, materials and utility connections, preserving affordable units would involve identifying a source of funding to subsidize the cost difference between market -rate prices and an affordable rent or payment.

Per the 2023 "HOME' Program Rent Limits determined by HUD, $1,784 is the maximum affordable "high" rent for a one -bedroom unit, while the fair market rate rent is $2,350. This difference of $566 per month would indicate that $3,396 per month subsidy would preserve the affordability of the six SMILE units.

Rehabilitation is another option: The recent Isla Vista apartment rehabilitation by the County of Santa Barbara cost $1,170,000 to rehab 56 apartment units. Therefore, this major rehabilitation, which was completed in December 2022, cost just under $21 thousand per unit.

As described in Program 2.D, to ensure the SMILE units remain affordable, the City will contact SMILE at least one year prior to the affordability expiration to again confirm their commitment and their ability to keep the 6 units affordable. If SMILE indicates they are unable to maintain the affordability, the City will work with SMILE on possible funding sources to subsidize the cost of maintaining affordability. If SMILE is considering allowing the units to convert to market -rate units, the City will reach -out to qualified entities, such as People's Self Help Housing, the Housing Authority of the County of Santa Barbara, Partners in Housing Solutions (PHS), and the Santa Barbara Community Housing Corporation (SBCHC), to encourage acquisition. The City will support funding applications by non-profit providers or public agencies to preserve the affordability of these units. The City will also monitor for new programs and sources of funding to extend affordability of these units.

Potential funding sources for the preservation of these units include:
• Homekey: Homekey provides grants to acquire and rehabilitate a variety of housing types, such as hotels and residential care facilities, to serve people experiencing homelessness or who are also at risk of serious illness from COVID-19. • Multifamily Housing Program (MHP): This program provides deferred payment loans for the construction, preservation, and rehabilitation of permanent and transitional rental housing for lower -income households.
• Golden State Acquisition Fund (GSAF): This $93 million fund provides low-cost financing aimed at supporting the creation and preservation of affordable housing across the state. GSAF makes up to five-year loans to developers for acquisition or preservation of affordable housing.

A-46 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

• Local Housing Trust Fund (LHTF) Program: This program provides matching funds to local or regional housing trust funds for the creation, preservation, and rehabilitation of affordable housing, transitional housing, or emergency shelters. • Community Development Block Grant (CDBG): Federal funding for housing programs is available through the U.S. Department of Housing and Urban Development (HUD).

CDBG funds may be used to provide a suitable living environment by expanding economic opportunities and providing decent housing to low-income households (80 percent AMI).

The City is an entitlement jurisdiction that is allocated annual federal CDBG funds. • Low -Income Housing Preservation and Residential Home Ownership Act (LIHPRHA): This program requires all eligible HUD Section 236 and Section 221(d) projects at risk of conversion to market -rate rentals from mortgage pre -payments be subject to LIHPRHA incentives, which include subsidies to guarantee an eight percent annual return on equity.
• Low -Income Housing Tax Credit: Administered through the California Tax Credit Allocation Committee (TCAC), the Low -Income Housing Tax Credit (LIHTC) subsidizes the acquisition, construction, and rehabilitation of affordable housing by providing a tax credit to construct or rehabilitate affordable rental housing for low-income households. • Section 202 Supportive Housing for the Elderly Program: Provides an interest -free capital advance to cover the costs of construction, rehabilitation, or acquisition of very low- income senior housing. The program is available to private, nonprofit sponsors; public sponsors are not eligible for the program.
• HOME Investment Partnerships Program: HOME is the largest Federal block grant to state and local governments for the creation and maintenance affordable housing for low- income households. Funding may be used for home purchase or rehabilitation financing assistance, to build or rehabilitate housing for rent or ownership; or for "other reasonable and necessary expenses related to the development of non -luxury housing," including site acquisition or improvement, demolition of dilapidated housing to make way for HOME - assisted development, and payment of relocation expenses, or to provide tenant -based rental assistance contracts of up to 2 years. The City of Santa Maria does not receive a direct allocation from HUD. Rather, it is part of a Consortium with the County of Santa Barbara, along with a couple other cities in the county. • Permanent Local Housing Allocation (PLHA): PLHA stands for Permanent Local Housing Allocation. It is state funding provided to local governments in California for housing -related projects and programs that assist in addressing the unmet housing needs of the community. Funding may be used for such things as the predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live - work, rental housing that is affordable to extremely low-, very low-, low-, or moderate - income households, including necessary operating subsidies, Capitalized Reserves for Appendix A: Demographics and Housing Needs Assessment City of Santa Maria 1 A-47

Services connected to the preservation and creation of new permanent supportive housing, and Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. The City of Santa Maria is part of the PLHA Consortium with the County of Santa Barbara.

Despite the rising cost of housing development, as of September 2022, there are 318 affordable units under construction in the City. The Centennial Gardens Apartments project on West Battles Road in Santa Maria, has received over $32 million in tax-exempt affordable housing bonds from the California Statewide Communities Development Authority (CSCDA) for the development of 159 affordable units serving large families with rents affordable to households earning 30 to 70 percent of area median income (AMI). The project will be developed by MacDonald Ladd.

The Santa Maria Studios project has received over $2 million in annual federal tax credits to finance the new construction of 159 units of housing serving seniors with rents affordable to households earning 30 to 60 percent of AMI, and is in development at 2660 & 2712 Santa Maria Way in Santa Maria, by Pacific West Communities, Inc.

In addition to the units under construction, the Centennial Square Apartments project has received City discretionary approval and density bonus for 182 affordable units, which as of September 2022 are in building permit review. Centennial Square Apartments is located at SW Corner of Miller St. & Plaza Dr. in Santa Maria and has received over $3 million in annual federal tax credits to finance the new construction of 182 units of housing serving large families with rents affordable to households earning 30 to 60 percent of AMI. The project will be developed by Dawson Holdings, Inc.

A-48 1 City of Santa Maria Appendix A: Demographics and Housing Needs Assessment

Appendix B: Sites Inventory &
Methodology
Contents
Appendix B: Sites Inventory & Methodology 1
Contents 1
Section B.1 Introduction 2
B.1.1 Overview and Purpose 2
B.1.2 Regional Housing Needs Allocation 2
B.1.3 Data 3
Section B.2 Future Residential Development Potential 4
B.2.1 Accessory Dwelling Units 4
B.2.2 Entitled and Proposed Developments 6
B.2.3 Assumptions 10
B.2.4 Methodology 12
B.2.5 Suitability of Nonvacant Sites 14
B.2.6 Environmental Constraints for Available Sites 19
Section B.3 Adequacy of Residential Sites in Meeting RHNA 23 B.3.1 Housing Sites Maps 24
B.3.2 Housing Sites Table 26
Sites Inventory and Methodology City of Santa Maria 1 B-1

Section B.1 Introduction
B.1.1 Overview and Purpose
This Technical Appendix describes the available sites for housing within the City of Santa Maria and the Regional Housing Needs Allocation (RHNA) Plan and the ability of Santa Maria to accommodate the fair share allocation of housing. Government Code Section 65583(a)(3) requires that the Housing Element include an inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. Government Code Section 65583.2(a) requires that the inventory identify sites "...that are sufficient to provide for the jurisdiction's share of the regional housing need for all income levels..." within the planning period.

The City's inventory of sites for potential housing is presented in this Technical Appendix. The available sites inventory is comprised of approved projects, vacant sites, and future Accessory Dwelling Units (ADUs). The sites analysis documents that there are sufficient vacant sites available within the City of Santa Maria, in addition to anticipated future ADU development, to accommodate the City's 6`h -cycle RHNA.

B.1.2 Regional Housing Needs Allocation
State law (California Government Code Section 65584) requires that each city and county plan to accommodate a fair share of the region's housing construction needs. The Regional Housing Needs Assessment is conducted by California's Department of Housing and Community Development (HCD), which determines a state-wide housing need. That state-wide need is then distributed among the state's regional Councils of Governments as the Regional Housing Need Determination.

Santa Maria is within the Santa Barbara County region and is a one of the region's eight incorporated cities (Buellton, Carpinteria, Goleta, Guadalupe, Lompoc, Santa Barbara, and Solvang) which along with the unincorporated county areas, comprise the Santa Barbara County Association of Governments (SBCAG). HCD determined that the Regional Housing Need for the SBCAG region is a minimum of 24,856 housing units. These units must be accommodated during the sixth cycle of the RHNA, which is the statuary planning period of February 2023 to February 2031
SBCAG has established the methodology to distribute the overall housing need among its jurisdictions, assigning each with a RHNA. The RHNA is a quantified minimum projection of additional housing units needed in the City to accommodate projected household growth at all income levels by the end of the housing element's planning period.

B-2 1 City of Santa Maria Sites Inventory and Methodology

Table B-1 presents the projected housing needs for all income categories as determined in the RHNA. The Adequate Sites section that follows demonstrates that the City of Santa Maria has more than a sufficient number of adequate housing sites available to meet the housing needs allocation for all income categories.

Table B-1: HCD Revised State Income Limits for 2021, December 31, 2021 Income Category (% of County �
AMI)
Number of Units
Percent

9.5%
Extremely Low
516
Very Low
516

9.5%
Low
536

9.9%
Moderate
731

13.5%
Above Moderate
3,119

57.6%
Total Allocation
5,418
100.0%
Source: Regional Housing Allocation Plan, SBCAG, 2021.

Following Section 65583(a)(1) of the Government Code, the City will presume that 50% of the very low-income households qualify as extremely low income households. Therefore, the total number of extremely low and very low-income households noted in Table IV -1 equal the City's original 1,032 Very Low income unit allocation.

B.1.3 Data
The development of the Available Sites Inventory, including the identification of approved residential projects and ADUs, used the following City data sources:
• The 5th Cycle City of Santa Maria Housing Element
• Recent Annual Progress Reports
• City Discretionary Permit and Building Permit records • City Zoning Ordinance
• City General Plan Land Use and Zone Maps
• Downtown Specific Plan
• Planning Commission Public Hearing Agendas and Minutes Sites Inventory and Methodology City of Santa Maria' B-3

Section B.2 Future Residential Development Potential
B.2.1 Accessory Dwelling Units
The City has adopted an ADU Ordinance consistent with current state law (Zoning Code Chapter 12-56) and has been processing ADU building permit applications and issuing permits since 2018.

The Ordinance includes development standards for attached and detached ADUs and specifies the requirements and process for permitting ADUs in residential zones. The ordinance was updated in 2021 to reflect new State regulations for ADUs and Junior Accessory Dwelling Units (JADUs). The City has produced an `Accessory Dwelling Unit Guide' which has been made available through the City's website and at the Community Development Department public counter. In addition to the guide, the Planning and Building Division staff respond to property owner questions regarding ADU process and standards and are available to informally review concept ADU proposals.

Government Code section 65583.1 provides that local governments may include ADUs as part of their strategy for accommodating their RHNA. The City of Santa Maria allows ADUs in the city's residential zones, but the precise location and rents of future ADUs are unknown. Therefore, the City has prepared the following analysis to determine the number of ADU permits issued during the previous three years. The City then surveyed ADU owners to determine rental costs, discovering that many owners do not charge rent to the household occupying the ADU.

Combining the annual average number of permits with the affordability information allows the City to project future ADU permits by RHNA income category for the 8 -year RHNA cycle.

ADU Projection
For the prior three years (2019 through 2021), the City has issued an average of 236 ADU building permits. In 2018 when the City received the first ADU permit applications, only 47 permits were issued. To be conservative in our projection we are including the 2018 permits in the analysis, even though doing so reduces the annual average to 189 permits issued.

The upward trend in yearly ADU permit issuance is continuing, as evidenced that the City had already issued 195 ADU building permits in the first quarter of 2022. Again, to be conservative in our projection, we are not including those 2022 permits in the ADU projections. As depicted in Table B-2, the City projects to issue 1,512 ADU permits during the Sixth Cycle.

Table B-2: HCD Revised State Income Limits for 2021, December 31, 2021 A
•
Annual
Average
M= 8 -Year
Projection
47 103
204
401
755
189
1,512
B-4 1 City of Santa Maria
Sites Inventory and Methodology

Affordability Analysis
The steps taken in the affordability analysis are as follows:
• Confirm the State's maximum rent limits for each RHNA household income category, using the HCD Maximum Income Limits for Santa Barbara County, 2021. • Conduct online and phone surveys to determine ADU rental costs within the City. • Assign each of the ADUs surveyed to an income category, and establish the percentage of total surveyed ADUs in each category.
• Use those percentages to calculate the affordability category of projected future ADUs.

The 2021 Santa Barbara County Area Median Income is $90,100 (see Table 11-1: Santa Barbara County 2021 Income Limits).

Based on information gathered in the phone surveys, the majority of ADU households consist of 2 to 3 persons. Using the HCD income limits, Table B-4 depicts the maximum ADU rents for Households of 2 to 3 persons, by affordability category.

Table B-4: ADU Rent Maximums
Affordability
Category
IL_
Income Range
Two -Person
Household
Three -Person
Household
Max Rent2
Income'
Max Rent2
Income,
Extremely low
Below 30% of
area median
income
$30,000
$750
$33,750
$843
Very Low
30% - 50% of
area median
income
$50,000
$1,250
$56,250
$1,406
Low
50% - 80% of
area median
income
$80,050
$2,001
$90,050
$2,251
Moderate
80% -120% of
area median
income
$86,500
$2,163
$97,300
$2,432
Maximum based on HCD Revised State Income Limits for 2021, December 31, 2021 ( https://www.hcd.ca.gov/grants- fundinq/income-limits/state-and-federal-income-limits/docs/income-limits-2021. pdf)

2. Monthly Maximum Rent determined by multiplying the Income Maximum by 30%, then dividing by 12 months, with resulting fractional dollar amounts rounded down.

In early 2022 the City conducted an over the phone survey of ADU property owners who had received certificate of occupancy for their ADU in 2021 to determine the rents charged (if any) to households occupying ADUs. Twenty-three ADU owners responded to our questions, and their responses on rent costs were then compared to the maximum rents from Table B-4.

Ten out of the 23 ADU owners responded they did not charge the occupants of the ADU household any rent (non -rental). These ADUs, equating to 43% of total survey ADUs, were allotted as affordable to the Very Low-income category. Six of the 23 ADU owners indicated the rent charged is less than $1,406 per month, therefore affordable at the Very Low-income category Sites Inventory and Methodology City of Santa Maria' B-5

for a three -person household. Seven indicated the rent they charged was less than $2,251 per month for the ADU, therefore affordable for the Low-income category for a three -person household. No ADU rents reported were above the Low-income category.

Table B-5 below provides rented and non -rental ADU percentages.

Table B-5: Survey of 2021 Finaled ADUs
Affordability
Category
Affordability Assumption Affordability Assumption Affordability Assumption for Rented ADUs Non -Rented ADUs All ADUs Combined
(56.5% of Total) (43.5% of Total) (100% of Total)
Very Low
6 10

69.5%
Low
7 30.5%
Affordability of Projected ADUs
The analysis indicates that as of 2022, the affordability of the City's completed ADUs are in the Low to Very Low income categories. Realizing the ADU rental market may change over time, the City has taken a more conservative approach in assigning affordability to the 1,512 ADUs projected to be constructed within the Sixth Cycle. With the Statewide housing cost and rent increases experienced in 2022, the City is assuming that ADU rents will likely also rise. Therefore, to be conservative, the City has assigned 20% of the total projected ADUs to the Moderate Income category, and 10% are assigned to the Above Moderate income category.

Table B-6: City of Santa Maria Projected ADUs by Income Category Affordability
Category
Affordability Assumption for All ADUs 8 -Year ADU Projection (100% of Total) 1,512
Low
70%
1,058
Moderate
20%
303
Above Moderate
10%
151
B.2.2 Entitled and Proposed Developments
The RHNA projection period begins on June 30, 2022 and concludes February 15, 2031. Projects which have applied for discretionary approval and those projects with completed entitlements but did not receive their certificate of occupancy or final permit by June 30, 2022, but are expected to be completed before the end of the planning period (February 15, 2031), may be credited to the City's RHNA, with documentation of the number of approved units and their affordability. Table B-7 lists those projects.

B-6 1 City of Santa Maria Sites Inventory and Methodology

Table B-7: Entitled and Proposed Development Projects as of November 2022 Project Name
Vino Bello /
DT2020-0017
APN
119-276-015
Address
120 W
Chapel
Project
Description
32 attached
units on 0.3
acres
Project
Status
Approved
Building Permit
Status
Applied
In Review
Site
Condition/
Existing Use
Vacant
Unit
Low
Affordability'
Mod
Above
Mod
I
32 UPDATE as of
JUNE 2023
Status
• Temporary Power permitted and installed.

Phasing
Anticipated

Completion
No
2024
123 Fesler
Apartments /
DT2020-0016
121-152-014
123 W
Fesler
23 attached
units on 0.2
acres
Applied -
In Review
-
1 SFR Unit 2
22 3
City is working with the applicant. Pending
resubmittal by applicant fall of 2023.

Hearing potentially as early as spring 2024
No
2024
309 Mill
Apartments /
DT2020-0015
121-193-011
309 E Mill
23 attached
units on 0.2
acres
Applied -
In Review
-
1 SFR Unit 2
22 3
City is working with the applicant. Pending
resubmittal by applicant fall of 2023.

Hearing potentially as early as spring 2024
No
2024
Gateway Mixed
Use / DT2017-
0033
119-276-019
101 N
Broadway
Mixed Use
Commercial
with 18
attached units
on 0.3 acres
Approved
Issued - In
Construction
Vacant
18 • Water Meter Purchased
• Electric Meter Installed
. Building Construction and Inspections
underway
No
Early 2024
Cook Street
Apartments /
DT2022-0017
125-320-018
200 Block of
E Cook St
117 attached
units on 0.69
acres
Applied -
In Review
-
Vacant
117
• Downtown Revitalization Committee (non-
discretionary review) occurred April 2023
• Next step is Planning Commission hearing
anticipated for September 2023
No
Late 2024
Heritage Walk
Lofts DT2022-
0018
123-280-003
201 Town
Center
102 attached
units on 1.3
acres
Applied -
In Review -

Retail 2
102
• Project entitlements approved by City
Council on March 7, 2023
No
Mid 2024
Park Edge
Apartments / with
PD2020-0008
128-090-039,
128-090-023
2770 Santa
Maria Way
Mixed Use
Commercial
140
attached units
on 7.5 acres
Approved
-
Vacant
12 128
• Building Permit plan reviews in process.
• Grading permit issued
No
Early 2025
Northman /
PD2018-0013
109-010-005
3000 Santa
Maria Way
59 single-family
detached units
on 13.2 acres
Approved
Applied -
In Review
Vacant
58 • Grading permit issued and construction in

process.
• Model Home Building Plans approved.
• Building permits issued for individual lots.

No
Early 2024
B-7 1 City of Santa Maria
Sites Inventory and Methodology

Centennial
Square
Apartments /
PD2020-0009
128-066-003
Miller Street
and Plaza
Drive
184 attached
units on 6.3
acres
Approved
Applied
In Review
Vacant
38 146
• Grading Permit approved.
• Building Permits issued.

No
2025
Barcellus Senior
Apartments /
PD2016-0005
128-067-033
510E
Barcellus
80 senior
attached units
on 2.4 acres
Approved
-
Vacant
80 • Planning Commission approves PD
Permit application PD2022-0015 to make
project Senior and Affordable
• applying to HCD for the upcoming 2023
HCD SuperNoFA for MFH Funding
No
2025
Starlight Homes
/PD2022-0006
109-010-012
3170 Santa
Maria Way
49 single-family
detached units
on 8.9 acres
Applied
In Review
Drive In
Theater z
49 1
• General Plan / Zoning Amendment and
Planned Development Permit approved by
City Council.
• Demolition Permits (removal of Drive in)
approved.

No
Mid 2025
Betteravia Plaza
Apartments /
PD2021-0006
117-990-001
Blosser and
Carmen
340 attached
units on 15.5
acres
Applied -
In Review
-
Vacant
443
•
• General Plan / Zoning Amendment and
Planned Development Permit approved by
City Council.

No
2025
Lakeview Mixed
Use / PD2018-
0008
111-100-008
3513-3535
Mercury
Drive
Mixed Use
Commercial
with 166
attached units
on 4 acres
Approved
Issued In
Construction
Vacant
167
• Building Construction and Inspections
underway
No
Mid 2024
Centennial
Gardens /
PD2020-0006
118-010-058
800 W
Battles
Road
160 attached
units on 8.4
acres
Approved
Issued - In
Construction
Vacant
159
1 • Building Construction and Inspections
underway
Yes.

Late 2023
Santa Maria
Studios Phase I
128-090 011
2660 Santa
Maria Way
160 Senior
attached units
on 2.75 acres
SB-35
Project
Issued - In
Construction
Vacant
160
• Building nearing completion, with over 100
progress inspections to date
Phase 1 of
2 Late 2023
Santa Maria
Studios Phase II
128-090 023
2660 Santa
Maria Way
218 Senior
attached units
on 2.75 acres
SB-35
Project
-
Vacant
29 189
• Application Received and in process.

Phase 2 of
2 Late 2024
Total Units
447
147
1,379

1. All units cited as below market rate units are required to be deed restricted to the below market rate rent/price as a condition of project approval and/or Density Bonus Agreements.

2. For each non -vacant site cited, the property owner has endorsed the removal of the exiting use and redevelopment of the property. All existing units that will be demolished are market rate units; no units to be demolished are subject to a recorded covenant, ordinance, or law that restricts rent levels to affordable to low-income households.

3. Only the net new number of units are counted toward the RHNA.

B-8 1 City of Santa Maria
Sites Inventory and Methodology

Entitled and proposed developments would result in 1,973 net new units, with approximately 70% being above moderate housing units, and approximately 22% being low income units. Of the nine projects with approved entitlements listed above, eight (88%) have filed building permit applications, and as of the June 2023 update all but one of those (77%) have received building permits. This demonstrates that the entitled and proposed projects listed in Table B-7 are likely to develop within the planning period.
"Drop -Out" Rates
Since 2015, the City has approved 38 residential projects with just over 2,000 dwelling units entitled through either a Planned Development Permit or Conditional Use Permit discretionary process. Of these 38 projects, 52% of the projects (911 units) have been constructed, 18% of the projects (859 units) are in building permit review or under construction, with four of the projects having no activity since their discretionary approval. Time extensions have been approved for eight of these projects which has kept the discretionary approval active. Additionally, as a courtesy to applicants the Planning Division regularly sends out notices to applicants whose discretionary approvals are near to expiring. Very few discretionary approvals for residential projects expire, with only one of the 38 discretionary approvals approved since 2015 expiring (2 % of the 38 approved projects).

None of the residential projects approved since 2015 have been withdrawn, but there have been three instances where a previously approved discretionary permit about to expire has been superseded by the approval of a new, revised residential application. A recent example of this is the Barcellus Senior Housing Project (PD2016-0005) which was set to expire in early 2023.

However, upon the applicant's request, the Planning Commission re -approved the project, issuing a new Planned Development Permit (PD2022-0015) for the same 80 dwelling units as was originally approved, but now as a 100% affordable project in addition to being age restricted for seniors. The City is in the process of assisting the developer with their application to HCD for Multifamily Housing Program funding.

Another superseded project is the former Avante Apartments project site, in which case the City has recently approved a new Planned Development Permit for an 86 -unit apartment complex, where the 81 -unit SerraMonte Townhome project had previously been approved five years prior.

Lastly, Centennial Square had originally been approved under Planned Development Permit PD2012-0003 for 139 market -rate apartment units on a 6.4 acre site. That project had received two time extensions over the years and was nearing expiration. In August of 2021 the Planning Commission approved a revised apartment project (PD2020-0009) on that same site including a density bonus allowing an increase to 184 units, concessions for reduced parking, setbacks, and landscaped area requirements, and with 100% of the units affordable to lower incomes.

Sites Inventory and Methodology City of Santa Maria' B-9

B.2.3 Assumptions
The City identified available development sites in the City's three primary residential zones (Single -Family, Medium -Density, and High -Density zone designations), within the Downtown Specific Plan, and the mixed -use sites within the Area 9 Specific Plan. Table B-8 utilizes the approved density for recent residential development projects to arrive at realistic average density that can be assumed for future projects on available sites.

Table B-8: Average and Realistic Density
Zone/Maximum
Density
Project
Approved
Density
Average Approved
Density
Realistic Average
Density
Single Family
Residential (R-1)
Up to 8 du/ac
Northman
PD2018-0013

4.6 5.0 du/ac Average
Approved Density
-
62% of Maximum
Density
Realistic Average
Density 4 du/ac
(80% of Average
Approved)
-
50% of Maximum
Density
Starlight Homes
PD2022-006

5.5 Medium -Density
Residential (R-2)
Up to 12 du/ac
None
N/A
N/A
Realistic Average
Density 8.5 du/ac
-
70% of Maximum
Density
High -Density
Residential (R-3)
Up to 22 du/ac
Centennial Square Apartments
PD2020-0009

22.01 20.2 du/ac Average
Approved Density3
-
91% of Maximum
Density
Realistic Average
Density 18 du/ac
(89% of Average
Approved)
-
80% of Maximum
Density
Betteravia Plaza Apartments
PD2021-0006
22 0
Barcellus Senior Apartments
PD2016-0005

22.0 z
Park Edge Apartments
PD2020-0008

18.7 Lakeview Mixed Use
PD2018-0008

17.6 Centennial Gardens
PD2020-0006

19.3 Downtown
Specific Plan
(DTSP)
No Density
Maximum
Vino Bello
DT2020-0017
106.6
107.4 Average
Approved Density
Realistic Average
Density 30 du/ac
(28% of Average
Approved)
123 Fester Apartments
DT2020-0016
115.0
309 Mill Apartments
DT2020-0015
115.0
Gateway Mixed Use
DT2017-0033

60.0 Cook St Apartments
DT2022-0017
169.5
Heritage Walk Lofts
DT2022-0018

78.4 '. Actual Centennial Square Apartments project density is 29.2 DU/AC. Figure does not include approved Density Bonus.

2. Actual Barcellus Senior Apartments project density is 33.3. Figure does not include additional Senior Housing Density (City R- 3 regulations allow up to 30 units per acre for senior housing) or the approved Density Bonus for the project.

3.1f Senior and Density Bonus were included, Average Approved Density would be 23.3 DU/AC — 106% of Maximum Density.

B-10 1 City of Santa Maria
Sites Inventory and Methodology

The City has seen fewer single-family detached projects in recent years, and there are only two projects in the R-1 single-family zone with an average density of 5 DU/AC. The city conservatively assumes a Realistic Average Density 4 DU/AC for identified available sites, which is 50% of the zone's maximum density and 80 percent of the development trend of 5 DU/AC average approved density.

There are currently no proposed or entitled projects in the Medium Density Residential (R-2) Zone District. The R-2 permits up to 12 DU/AC. The City assumes 70% of the maximum density as a conservative Realistic Average Density yield for the three listed available sites within the R-2 zone.

These identified sites are smaller than one acre and each yield five or fewer units. Currently the zoning ordinance allows Zoning Administrator discretion on Conditional Use Permits for projects consisting of 12 or fewer units. However, proposed Program 3.0 initiates a reduction on the reliance of Conditional Use Permits for multi -family development.

The Projects approved in the High Density Residential (R-3) District are at or near the maximum density for the zone (91 % of the maximum density). There are no identified limiting factors which result in reduced project density. The City assumes 80% of the maximum density (89% of the approved average) as a conservative Realistic Average Density yield for future projects in the R- 3 zone.

Two of the listed projects within the R-3 zone, Centennial Square Apartments and Barcellus Senior Apartments, exceed the standard 22 DU/AC for the zone. The Barcellus Senior Housing project utilized the City's R-3 regulations allowing senior housing at up to 30 units per acre.

Additionally, each project received approval for a density bonus, with the Centennial Square Apartments approved at a project density of 29.2 DU/AC, and the Barcellus Senior Apartments project approved at a density of 33.3 DU/AC. These projects, developing at more than the maximum density for the zone, is indicative of the strong City support for residential uses.

While the City of Santa Maria has a Mixed -Use Ordinance which permits residential development to be mixed with commercial, industrial, and other residential zones, the City does not have a zone district specifically for Mixed -Use projects. Only one Mixed -Use project is identified as an Available Site: The Area 9 Specific Plan. The Area 9 Specific Plan allows that up to 550 units may be permitted as a component of vertical residential/office mixed use development in the Specific Plan's Commercial Office / Professional Office (CPO) designated sites. With the development of the over 110 -acre area of CPO zoning unknown at this time, and for ease of calculation, the available sites analysis used the entire area of the Area 9 CPO designated acreage. Additionally, the City assumed 80% of the maximum density (the same assumption used for the High Density Residential calculation) resulting in an assumed realistic density average of 4 units per acre.

The Downtown Specific Plan permits residential uses, commercial uses, or a mix of residential and commercial on all sites within the specific plan. Between 2019 to 2021, Santa Maria received 11 applications for new development within the Downtown Specific Plan. Four of these applications proposed development of new or expansion of existing commercial uses (36 percent).

Sites Inventory and Methodology
City of Santa Maria' B-11

The remaining six residential applications and one mixed -use application averaged an approved Density of 107.4 DU/AC, again demonstrate strong market demand for residential uses within the Downtown Specific Plan, and the City support for such residential densities in the Downtown. To be very conservative, the City estimated a Realistic Average Density for vacant and underutilized Downtown sites of 30 DU/AC.

Projects that are below maximum density are constrained by various factors, including but not limited to the City's parking requirements. While reduced parking is available for residential and mixed -use projects within the Downtown Specific Plan, and also open for reduction requests through the Planned Development permit process, parking requirements could constrain housing production. As discussed in Appendix C, the zoning standards for parking should be assessed, and should be further evaluated with additional options considered to allow for parking reductions as to their impact on housing feasibility. Program 3.E has been included for the City to conduct this assessment and review implementation of other proven parking strategies (e.g. expanding shared parking).

B.2.4 Methodology
The City has conducted a multi -step effort to identify both vacant and non -vacant available sites for future housing development within the current City boundaries.

Current aerial information and zoning maps were used to identify vacant residential sites, and visual inspections used to confirm the condition of the sites. Vacant sites comprise the vast majority of the available sites identified. Any parcel with a current entitlement is listed separately in Table B-7 above, and is not included in the list of Available Sites. The majority of sites identified are greater than 0.25 acres. All sites are urban sites within the current City boundaries. None of the available sites have Williamson Act contracts (confirmed through the California Department of Conservation's California Williamson Act Enrollment Finder) or other conservation restrictions.

None of the parcels are subject to a Mills Act contract (i.e., historic property).

The next step in the analysis was to determine the income level that can be accommodated on the site given the maximum allowable density per the sites Zone designation. The lower income category threshold is consistent with the default density.

Table B-9: Average and Realistic Density by Zone
Maximum Density by Zone
Affordability Level
Above Moderate Income
14 or less du/ac
15-29 du/ac
Moderate Income
30 du/ac or more
Low Income
Per HCD guidance, sites accommodating lower -income housing should be between 0.5 and 10 acres. In keeping with that guidance, and to be conservative in our affordability assumptions, all B-12 1 City of Santa Maria
Sites Inventory and Methodology

potential units attributed to sites with lot sizes smaller than 0.5 or larger than 10 acres were categorized for `moderate' or higher income affordability level. All sites with lot size smaller than

0.25 acres were categorized for above moderate housing capacity.

Many projects cited in Table B-7 are within the Downtown Specific Plan and exclusively residential.

The average density of the Downtown projects listed is over 107 DU/AC. Recognizing the high variability of the shape and size of downtown sites, and the possibility that some sites may be developed with mixed residential and commercial projects, or potentially lost to exclusively commercial development, the City had conservatively assumed a density for the identified available Downtown Specific Plan sites of 30 DU/AC. There are also a group of sites within the Downtown Specific Plan that the City has identified as `Surplus Land', to which a realistic density of 30 DU/AC is also assigned.

Although the City is conducting an update to the entire General Plan, and the discussions have broached the topic of possible future annexation, a final direction regarding annexation is not yet established. Therefore, no annexation areas are included as potential available housing sites.

There are two sets of sites identified as available that would likely benefit from consolidation: 415 E Orange (two parcels) and 417 E Boone (four parcels). In each of the two cases, the parcels are under the same ownership. The City of Santa Maria supports consolidation of parcels through the non -discretionary Lot Merger process.

None of the identified available sites are historic sites. All of the sites abutting existing developed City streets have adequate access to infrastructure and utilities and are considered infill parcels within the City's existing jurisdictional boundaries. While each project may need to upsize adjacent existing utility connections and infrastructure as needed, these sites are already zoned for the housing proposed. Therefore, the City operated utility production and treatment facilities (water, sewer, solid waste) all have sufficient capacity to accommodate the demands generated by the future housing units. Through Program 1.J, Infrastructure Funding Opportunities, the city will pursue supplemental capital improvement project funding (ex. grants) to complete infrastructure improvements as needed to facilitate the construction of infill residential development.

Various identified housing sites are City owned and have been designated as surplus land consistent with the Surplus Land Act (APNs 121-224-035, 123-280-026, 125-320-049, 123-043- 019). These sites are near the intersection of Main Street and Broadway, at the core of the Downtown Specific Plan. Although there are no density maximums within the Downtown Specific Plan, the available sites analysis conservatively estimates 30 DU/AC for these sites for a total of 189 low-income units. The city will continue efforts to facilitate the development of housing on these sites, with particular focus for those units designated for lower -income households.

Area 9 Specific Plan
One group of sites included in Table B-12 (sites 34, 35, 42, and 46) are within the Area 9 Specific Plan. The Area 9 Specific Plan includes zoning unique to the Specific Plan. One of these zones Sites Inventory and Methodology City of Santa Maria' B-13

is the Commercial Office/Professional Office (CPO) which is located on approximately 114 acres along the eastern boundary, across from existing single-family residential development.

Since this Area 9 CPO zone is unique within the City, it incorporates unique development standards and provisions only found in the adopted Area 9 Specific Plan. One of these unique provisions identified in the Specific Plan is the ability to incorporate up to 550 dwelling units within the Area 9 CPO, and include service oriented commercial uses, neither of which are permitted within the City-wide office zone classification. Although not indicated in the name of the zone, the Area 9 Specific Plan CPO zone is a residential mixed use zone. Sites 34, 35, 42, and 46 are located within this Area 9 Specific Plan CPO zone.

Chapter IV Section F of the Area 9 Specific Plan includes Building and Site Design Principles specific to the anticipated mixed use residential development of the Area 9 CPO zone, including that residential should occupied upper levels of mixed use buildings, uses should be within a 1/4 mile radius for walkability, and that office and commercial uses should be `neighborhood serving' including such uses as child-care and medical offices. Commercial uses such as restaurants, neighborhood scale retail, and entertainment uses are identified by the plan as being appropriate within the CPO zone to serve the residents of a residential mixed -use project.

Per the Specific Plan "A diversity of housing types shall be provided through the paring of residential components with the CPO zone. Row housing, loft -type dwellings, and flats, arranged either around courtyards or linearly along the pedestrian area, are examples of the diverse housing types anticipated within the Area 9 Specific Plan CPO zone." To date, the only project that has developed within the Area 9 Specific Plan is the Windset Farms Agricultural Greenhouses and Facilities. No other portion of the Area 9 specific plan, including the CPO zoned area, has developed. There has been recent interest expressed by the property owners within the CPO area to redesignate the entire CPO designated properties for exclusive residential use, supporting the strong demand and interest for residential in this area, but the City has not received any formal applications.

B.2.5 Suitability of Nonvacant Sites
The majority of the Available Sites (thirty-four of the 47) are vacant with only 13 of the sites being underutilized or non -vacant. The existing uses on the 13 non -vacant sites (listed in Table B-10 below) are well below the intensity/density possible under their current designations, therefore these non -vacant sites represent a significant opportunity for residential infill project development within the planning period. The City is not aware of any leases on these identified non -vacant sites that would perpetuate existing uses or prevent development of housing during the Sixth Cycle.

B-14 1 City of Santa Maria Sites Inventory and Methodology

Table B-10: Nonvacant Sites
Available
Site
Address
Existing Zoning
Acres
Current
Development
Age/Condition
Realistic
Capacity
Affordabi
by
ity
L
M
AM
SITE 03
100 N
Broadway
Downtown
Specific Plan -
Gateway

1.1 Under Utilized
Park/ City Owned
Surplus Land
Gazebo Structure.

No other
structures on site.
33 SITE 04
223 W
Church
Downtown
Specific Plan -
Town Center

1.4 Parking lot to be
vacated/ City
Owned Surplus
Land
No Structures on
site. Parking
Identified as
unnecessary by
City
42 SITE 06
101 S
Broadway
Downtown
Specific Plan -
Gateway

1.8 Parking and Plaza
to be vacated/ City
Owned Surplus
Land
No Structures on
site. Parking
Identified as
unnecessary by
City
54 SITE 08
Broadway
at Church
Downtown
Specific Plan -
Town Center
2 Parking lot to be
vacated/ City
Owned Surplus
Land
No Structures on
site. Parking
Identified as
unnecessary by
City
60 SITE 15
507 S
Oakley
Base: High
Density
Residential,
Overlay:

Planned
Development
1 1 Single -Family
Unit
Built: 1957
Numerous Code
Enforcement
Actions in past
planning period
18 SITE 16
450 W
Stowell
High Density Underutilized
Residential

1.85 (2
Single -Family
Units)
Built: 1940
30 SITE 18
665 W
Betteravia
Road
Base: High
Density
Residential -
17, Overlay:

Planned
Development

5.6 Underutilized
Industrial outdoor
storage and
trucking yard
No Significant
improvements
95 SITE 19
745 W
Betteravia
Road
Base: High
Density
Residential
17, Overlay:

Planned
Development
6 91
Underutilized
Industrial outdoor
storage and
trucking yard
No Significant
improvements
117
SITE 25
424E
Main
Downtown
Specific Plan -
Gateway

0.45 Parking lot to be
vacated
Mostly gravel, part
paved parking
area. Parking is
not required for or
associated with
any use.
14 SITE 27
2005 N
Broadway
Base: Low
Density
Residential,
Overlay:

Planned
Development

44.8 Underutilized (2-3
Single -Family Units
and misc. out
buildings)
Built: 1940's —
1960's. Site used
as non conforming
pastureland
surrounded by
urban
development
179
Sites Inventory and Methodology
City of Santa Marial B-15

Available
Site
Address
Existing Zoning
Acres
Current
Development
Age/Condition
Realistic
Capacity
Affordabi
by
ity
L
M
AM
SITE 30
3220 S

COLLEGE
DR
Base: Mobile
Home
Residential,
Overlay:

Planned
Development
5 R.V. Storage yard /
Vacant
Half (2.5 acres) of
the property is
unused and
vacant. At 10
Units per acre,
that vacant area
alone would
exceed the
realistic capacity
estimated for the
entire 5 acre site
20 SITE 32

SUEY RD
Base: Single
Family
Residential
10,000,
Overlay:

Planned
Development

5.49 Unitngle Family
Built: 1961
Over 3 of the site
remains vacant
unused land. The
existing unit may
be likely be
incorporated into
future
development due
to its placement on
the site
22 SITE 37
1571 E
Main
Base: Single
Family
Residential
8,000, Overlay:

Planned
Development

11.1 1 Single Family
Unit
Built: prior to
1960's
More than 80% of
the site is
undeveloped.
44 Of the non -vacant sites listed above, five have one or more existing single family residential units on the site, with eight existing single-family units total among these five sites (Sites No.'s 15, 16, 27, 32, and 37). These sites are between one and 44 acres in size (no parcel consolidation required), with some sites zoned for high density development. None of these sites are identified for units affordable to lower income households. Likewise, there are no affordability restrictions known to exist for these existing single-family units. Therefore, the current residential use of these sites falls significantly below the number of units possible under the current residential zoning, as demonstrated by the Realistic Capacity in the table above.

Nonvacant Sites No.'s 3, 4, 6, and 8 are all within the Downtown Specific Plan and are Surplus Lands Sites. As noted in Program 1 .1, the City has selected a developer's proposal for the four surplus lands sites, and a specific proposal for Site 6 is in the process of being refined.

There have been recent examples of new residential development on similar Downtown Specific Plan sites. The Gateway Mixed Use project identified in Table B-7 had previously been the location of a gas/service station. As a part of the Gateway project, the site has been cleared of the commercial structures and remediated, and construction of the mixed -use project has commenced. Also listed in Table B-7 is the Vino Bello project site which had been developed with a small carwash. That site has also been cleared of improvements by the residential developer/property owner in preparation of the development of the residential project. The applicant has applied for building permits for the new construction. The Heritage Walk Lofts B-16 1 City of Santa Maria Sites Inventory and Methodology

project listed in Table B-7 converts a former Mervyns retail building (located adjacent to Site 8) to 102 apartments.

The Downtown Specific Plan is divided into five different districts each with a unique character, vision, and purpose. All districts permit the development of (and conversion to) multi -family residential, residential mixed use, retail and office projects. The Specific Plan area is mostly developed with commercial uses, along with residential uses, public services and facilities, vacant properties, and many underutilized sites. The business thoroughfares of Broadway and Main Street are predominantly developed with one and two-story retail and office buildings, occupied by service commercial and office uses.

These Downtown examples noted above show that, even on sites that could develop as exclusively commercial, there is a strong trend toward residential development within the Downtown. As further documentation of the residential trend, since 2015 no project proposed within the Downtown Specific Plan involved converting existing residential development to a non- residential use. As an indication of sufficient existing retail and office space inventory to meet market demand, there has been no new construction of exclusively retail or office buildings in the Downtown Specific Plan area since the plan's adoption. Until the recent mixed use and residential development, the predominant activity within the Specific Plan area has been the tenant improvement of existing developed commercial buildings.

Other recent examples of residentially zoned non -vacant site development include:
• Pine at Boone Townhomes, where two detached single-family structures and out -buildings were demolished and replaced by 8 townhomes. This site is within the R-3 Zone and included a merger of two parcels to create the 0.4 -acre development site. The City issued building permits for this project in August 2022.
• The School/Mill Apartments, where two detached single-family structures were demolished and replaced by 9 apartment units. This site also included a merger of two parcels to create the 0.4 -acre site within an R-3 Zone. These units were occupied in 2020, and since that time two of the single car garages on the site have been converted to ADUs.

Two of the non -vacant sites (Sites 18 and 19) are being utilized for non -conforming truck and materials storage. The truck use is operated by the property owner, and that use was in place but became non -conforming when the property owner applied and received approval for a Land Use and Zone change from industrial to residential designations. Per Santa Maria Municipal Code Section 12-31.03.:

Nonconforming uses may continue in operation on the same land area and on the same floor area and/or land area as occupied on the effective date of these regulations provided that the degree of nonconformity is not increased. The land area or floor area of the structures shall not be increased except to the extent that the increase is used solely to bring the use or property closer or into conformance with these regulations, as determined by the Planning Commission.

Sites Inventory and Methodology City of Santa Maria' B-17

In other words, the existing truck and storage use and any related facilities on these sites may not be intensified or enlarged as that would worsen the `nonconformity', nor can the property be changed to any other non -conforming use. The City encourages and facilities these sites to convert to residential use as the only new development that will be permitted on these sites must be in conformity with the R-3 High Density Residential zoning designation. Additionally, the site west of these sites is the location of the Betteravia Plaza Apartments project (PD2021-0006) which has recently been approved for High Density Residential development, demonstrating the trend toward residential development in this area. There are over 25 acres of General Commercial designated land adjacent to the Betteravia Plaza project and Sites 18 and 19 which can be developed as shopping centers, offices, and other retail and service uses which would support the adjacent high -density residential developments.

One of the non -vacant sites (Site 25) is a parking lot which is not associated with any other use and is not leased, and therefore remains unused. Since this lot is not `required' parking, its current use will not be a restriction to its redevelopment. The last non -vacant available site (Site 30) is a five -acre lot, half of which is used as RV parking, while the remainder is vacant. At 10 Units per acre under the Mobil Home Park zoning density, that vacant portion of the site alone would exceed the realistic capacity estimated for the entire 5 acre site.

The recently approved Skylight Homes project site is on the location of the former Hi -Way Drive - In Movie Theater. Other than the snack bar building and the drive -in screen structures, nearly the entire site had been paved for parking. The City approved the Land Use and Zoning amendment from General Commercial to residential, and a Vesting Tentative Tract Map and Planned Development Permit to subdivide the 8.89 -acre site into 50 parcels for the construction of 49 affordable single-family residences. During the public hearings on the project, the Drive-in Theater owners reported that in their attempts to market the property, no commercial project developers had expressed interest. It was the City's support for the residential use of the property which drew the eventual buyer.

None of the identified available sites are historic sites. All of the Available Sites abut existing developed City streets and therefore have adequate access to infrastructure and utilities and are considered infill parcels with the City's existing jurisdictional boundaries. While each project may need to upsize adjacent existing utility connections and infrastructure as needed, these sites are already zoned for the housing proposed. Therefore, the City operated utility facilities which provide water, sewer treatment, and solid waste processing all have sufficient capacity to accommodate the demands generated by the future housing units. Through Program 1.J, Infrastructure Funding Opportunities, the city will pursue supplemental capital improvement project funding (ex. grants) to complete infrastructure improvements as needed to facilitate the construction of infill residential development.

B-18 1 City of Santa Maria Sites Inventory and Methodology

Availability of Infrastructure
All the available sites identified are within the City's urban area, adjacent to existing road right-of- way in which water, sewer, and storm drain utility lines are either existing, or are within close proximity. The sites are appropriately zoned for the residential development identified in the Available Sites Inventory table in Appendix B. The future development of the available sites, based upon their existing land use designations, are considered in the 2020 Urban Water Management Plan (UWMP), The City's 2014 Utilities Capacity Study, and the City of Santa Maria Sewer System Management Plan and its subsequent Audits. Additional information of the availability of infrastructure is provided in Section C.4.2 of Appendix C.

The UWMP describes the City's water supply, water demands, water reliability, and water conservation efforts. This document also provides the estimated population growth and water demand through the year 2045 and serves as a long-range utility planning document for the City.

The UWMP documents that these sources will provide adequate water through the year 2045, including for estimated growth.

The City's Utilities Capacity Study (2014) includes in its growth projections infill, redevelopment, and densification of uses, in addition to traditional development in undeveloped areas. The study uses Zoning Demand Factors, or the calculated amount of water demand per acre of each zoning category, to form the basis of the water and sewer demand projection analysis. The study notes that the City will have adequate sewer treatment capacity at `buildout' of the City based on the existing zoning.

The land use and zoning on vacant sites considered by the UWMP and Utilities Capacity Study for `buildout' are the same land use and zoning designations that are used to calculate the realistic capacity on the Available Sites, the City therefore has adequate sewer treatment capacity for the Sixth Cycle RHNA.

B.2.6 Environmental Constraints for Available Sites
All sites are urban sites within the current City boundaries. None of the available sites have Williamson Act contracts (confirmed through the California Department of Conservation's California Williamson Act Enrollment Finder) or other conservation restrictions. None of the parcels are subject to a Mills Act contract (i.e., historic property). The City (and all of the Available Sites) are outside the Fire Hazard Severity Zones established by the Office of the State Fire Marshal. None of the sites are within a FEMA flood zone or potentially impacted by flooding.

None of the sites are within a Santa Maria Airport Hazard Zone.

Most of the sites are less than five acres, surrounded by urban development, adjacent to developed streets where connection to infrastructure may be made. All sites are required to be kept clear of brush and weeds for fire safety and are regularly maintained to be kept clear of trash.

Under these conditions, these smaller sites do not have habitat value. All of the sites are generally flat with no significant slopes or potential for landslide or ground failure.

Sites Inventory and Methodology City of Santa Maria' B-19

With this context, the sites which require discretionary approval and are under five acres in size are typically found to be Categorically Exempt under Article 19 of the California Environmental Quality Act Guidelines, with most qualifying for the Class 32 `Infill" exemption. Therefore, majority of the Available Sites have no environmental constraints.

The larger sites (over five acres) will require environmental analysis per CEQA provisions, including sites 18, 19, 27, 32, and 37. Sites 18 and 19 are used for outdoor storage and truck yards and while there is no habitat value, no issues with slopes, flooding, wildfire, etc., these sites will need to be analyzed to determine if any soil contamination is present. If so, there will need to be remediation prior to development (see the process described in the Oil Remediation section below) but this will not result in a reduction of the number of potential units identified for these sites. Available Site 27 has two to three single family residential structures, some out buildings, and areas where personal property is stored outdoors, however the majority of the property area is used as non -conforming grazing land for a few animals. There will need to be biologic analysis with the development proposal, but the grazing use of the site and the regular weed removal makes the biologic value of the site questionable. There are trees on the site, but these may be removed and replaced under Section 12-44.04 of the Zoning Code. Otherwise, the site is generally flat, with no flooding issues, surrounded by urban development, and abutting roads and infrastructure. Unlike sites in the southern areas of the City, this site is not known to have had any petroleum extraction activities in its past. Site 32 and Site 37 likewise generally flat, with no flooding issues, surrounded by urban development, and abutting roads and infrastructure. Neither site has trees and each have been regularly maintained including weed removal. Each is abutting existing single-family residential neighborhoods. Therefore no known environmental site constraints exist on these larger sites, and there is nothing to suggest that environmental site constraints will reduce the number of estimated number of units these sites can accommodate.

CEQA analysis has been completed for those Available Sites within adopted Specific Plans.

Available Sites 34, 35, 42, and 46 are within the Area 9 Specific Plan. Sites 21, 22, 28, 31, 33, 43, 44, and 48 are within the Bloser Southeast Specific Plan. The conceptual development plans analyzed by the respective CEQA documents, and the projected number of units attributed to the Available Sites, takes into consideration the environmental site constraints identified for these sites, and the applicable mitigations. In other words, the respective Environmental Impact Reports document for each Specific Plan that the number of units will be achievable with all environmental constraints mitigated to less than significant levels.

Oil Remediation
Due to the petroleum industry history within the Santa Maria Valley, the City of Santa Maria is regularly involved with the processing of permits and coordination with State and Local agencies on the remediation of sites, particularly in the southernmost areas of the City.

B-20 1 City of Santa Maria Sites Inventory and Methodology

The City's Community Development Department is well versed in the process of remediation of well heads and associated oil well sumps. CaIGEM provides guidance to developers about proper abandonment and minimum clearance from abandoned well locations and conducts leak testing and prior abandonment assessment review. Santa Barbara County Environmental Health Site Mitigation Unit oversees site soil remediation plan review and execution. The City coordinates with both agencies prior to issuing grading permits for affected sites. The plugging and remediation costs are not borne by the developer, but by set aside funds from the oil industry and by state and federal funds. Numerous former oil well sites have been properly abandoned and remediated, and subsequently developed with residential projects. Additionally, in accordance with California Code of Regulations Title 27, the City has accepted Non -Hazardous Hydrocarbon Impacted Soils (NHIS) at the Santa Maria Regional Landfill since 2003.

During the discretionary and CEQA review stage of development projects, the City's communicates with Cal Gem for input on oil well head abandonments, confirming locations of well heads, and working with the developer to designate `no -build' easements on subdivision maps, and on site design and building placement to avoid any proposed construction near the well that might impede future access.

Once discretionary permits have been approved, the City will review and issue excavation and grading permits in coordination with Santa Barbara County Health once that agency has approved the applicant's proposed workplan. Recent remediation related excavation and grading and permit applications are going through one round of permit plan resubmittals, and generally taking two to four months from application to permit issuance. Remediation may move forward independently of development applications. Often the remediation work is being completed while building permit applications for the site development are in review, so little if any time is lost for the developer.

There are 10 former oil wells located among Available Sites 34, 35, 42, and 46, which are within the Area 9 Specific Plan. Only three of these have not yet been abandoned to CalGem standards.

The approval of the Area 9 Specific Plan included the adoption of an Environmental Impact Report and Mitigation and Monitoring Plan (MMRP) for the project. Mitigation HAZ-2(b) Re -abandonment of Wells addresses the former wellheads. The mitigation requires Department of Conservation, California Geologic Energy Management Division (CaIGEM) be contacted to provide a determination as to whether the well needs to be abandoned or re -abandoned, and the surrounding area remediated in accordance with current regulations. The Area 9 Specific Plan EIR Mitigations reduce these impacts to less than significant levels.

Sites 43, 44, and 48 are within the Bloser Southeast Specific Plan where two former oil wells are located. The EIR for the specific plan identifies mitigations HAZ-1a Soil Sampling and Remediation and HAZ-1 b Oil Well Abandonment to remediate the site as needed, abandon the wells, and therefore reduce the potential impacts to less than significant levels.

Sites Inventory and Methodology
City of Santa Maria' B-21

In both the Area 9 and Blosser Southeast examples, those available sites with former oil wells are large enough to allow the site design to recognize well locations without reducing the residential development potential or the projected units for the sites.

There are many examples within the City of completed residential developments on sites with former oil well facilities. The Northman Residential and the Park Edge Apartments are two residential projects currently under construction that remediated their sites, abandoned the well- heads, and were designed accommodating the on -site well.

B-22 I City of Santa Maria Sites Inventory and Methodology

Section B.3 Adequacy of Residential Sites in Meeting
RHNA
The following table summarizes the City's methodology for satisfying its RHNA (Table B-11).

Based on ADU projections, entitled and proposed projects, and available sites, the City has excess capacity in all income categories.

Table B-11: Projected RHNA Accommodation
RHNA
Extremely
Low
See Very Low
Very Low
536
731
Above
Moderate
3,119
Total
5,418
1,032
ADUs
-

1.058
303
151
1,512
Entitled/Proposed
Projects
447
147
1,379

1.973
Site Inventory'
See Very
Low/Low
204
330

1.800

2.334
Total
1,709
780
3,330
5,819
Surplus
See Very
Low/Low
141
49 211
401
I. Net new units
The City has sufficient available properly zoned land to accommodate the Sixth Cycle RHNA. The City does not need to rezone sites. None of the lower -income sites identified in this inventory are reused from the previous Housing Element site inventories.

AB 725 requires that at least 25 percent of the above moderate income RHNA (780 units) be met on sites that allow four or more units, and at least 25 percent of the moderate income RHNA (183 units) be met on sites that allow four or more units, but not more than 100 units. The City's sites inventory complies with these requirements as follows:
• Above moderate -income sites — approximately 2,100 units maximum capacity (approximately 1,800 units realistic capacity); approximately 1,786 units allowed on sites that allow four or more units (approximately 99 percent). • Moderate income sites — approximately 357 units maximum capacity (approximately 330 units realistic capacity); approximately 239 units allowed on sites with a maximum of four or more units but not more than 100 units (approximately 72 percent). One site for moderate income units has a realistic capacity of 117 units.

These totals do not include units calculated for entitled and/or proposed development projects (see Table B-7).

Sites Inventory and Methodology City of Santa Maria' B-23

B.3.1 Available Housing Sites Maps
The following map, Figure B-1, depicts the available site inventory by location and income category.

B-24 I City of Santa Maria Sites Inventory and Methodology

Available Sites By Income Level
Low Income Unit Sites
Moderate Unit Sites
Above Moderate Unit Sites
FEMA Flood Insurance Rate Map
— Sites affected by the 100 -year flood plane
NOVANRD"{ P

W ALVIN AVE

W STOWELL - D
0 0.375

0.75 EM6I

E STOWELL RD

E BETTERAVIA RD
•ruNurrurrtrtrlrrrurrYfrurrurruerLnrurrY
Housing Element Map
of Available Sites
For the City of
Santa Maria
Legend
City of Sanm Mina Community Dnekpnwa Dept.
110 S. Pine Si. *101. Sala Mari. CA 91158 ``
Hooves E2 I Map as of S.,orb.r 21.202 y`� 2
Rercd July 2021
Base data provided by S. Barham County.

No, down so cogInaaes wsdasd..

N
E
Idles
S

B.3.2 Available Housing Sites Table
The following table, Table B-12, list all available sites.

B-26 I City of Santa Maria Sites Inventory and Methodology

TABLE B-12 City of Santa Maria Available Sites Inventory Site Number
Site Address/Intersection
5 Digit ZIP
Code
Assessor
Parcel
Number
Consolidated
Sites
General Plan Designation (Current)
Zoning Designation (Current)
Minimum
Density
Allowed
units/acre
Max Density
Allowed
(units/acre)
Parcel Size
(Acres)
Existing UseNatancy
Infrastructure
Publicly -Owned
Site
Status
Identified in Last/Last Two
Planning Cycles)
Lower
Income
Capacity
Moderate
Income
Capacity
Above
Moderate
Income
Capacity
Total
Capacity
Realistic
Density
Optional
Information2
SITE 01
417 E Boone
93454
125.112-010
C
Commercial District 2
Downtown Spendin Plan . Town Center
5 no max

0.33 Vacant
YES - Current
NO - Privately -Owned
Available
Not Used in Prior Housing Element
10 10

30.30 Site 02
417 E Boone
93454
125-112-011
A
Commercial District 2
Downtown Specific Plan - Town Center
5 no max

0.5 Vacant
YES - Current
NO - Private -Owned
Available
Not Used in Prior Housing Element
15 30.00
SITE 03
100 N Broadway
93458
121-224-035
Commercial District 2
Downtown Specific Plan - Gateway
5 no max

1.1 Under Utilized Park
YES. Current
YES . Ciw-Owned
Available
Not Used in Prior Housing Element
33 33

30.00 Surplus Land Act
SITE 04
223 W Church
93458
123-043-019
Commercial District 2
Downtown Specific Plan -Town Center
5 no max

1.4 Parking lot to be vacated
YES - Current
YES- City -Owned
Available
Not Used in Prior Housing Element
42 42

30.00 Surplus Land Act
SITE 05
417 E Boone
93454
125-112-012
a
Commercial District 2
Downtown Specific Plan - Town Center
5 no max

0.17 Vacant
YES - Current
NO - Private! Owned
Available
Not Used in Prior Housing Element
5 29.41
SITE 06
101 S Broadway
93458
125-320-049
Commercial District 2
Downtown Specific Plan - Gateway
5 no max

1.8 Parking and Plaza to be vacated
YES - Current
YES - City -Owned
Available
Not Used in Prior Housing Element
54 54

30.00 Surplus Land Act
SITE 07
417 E Boone
93454
125.112-014
0 Commercial District 2
Downtown Specific Plan - Town Center
5 no max

0.2 Vacant
YES - Current
NO - Private! Owned
available
Not Used in Prior Housing Element
6 30.00
SITE 08
Broadway at Church
93458
123-280-026
Commercial District 2
Downtown Scecific Plan - Town Center
5 no max
2 Parking lot to be vacated
YES - Current
YES - City -Owned
Available
Not Used in Prior Housing Element
60 60

30.00 Surplus Land Act
SITE 09
121 S Russell
93458
123-011-013
High Density Residental (HDR22)
High Denisty Residntal
1 22

0.1 Vacant
YES - Current
NO - Privately -Owned
Available
2 2

20.00 SITE 10
1109 W Church
93458
123-011-016
High Density Residental (HDR22)
High Denisty Residntal
1 22

0.2 Vacant
YES - Current
NO - Private -Owned
Available
3 3

15.00 SITE 11
702 S Pine Street
93458
123-181-003
High Density Residental (HDR22)
High Denisty Residntal
1 22

0.19 Vacant
YES - Current
NO - Privately -Owned
Available
3 3

15.79 SITE 12
701 5 Pine St
93458
123-163-006
High Density Residental (HDR22)
High Denisty Residntal
1 22

0.17 Vacant
YES - Current
NO - Privately -Owned
Available
3 3

17.65 SITE 13
718 S Lincoln
93458
123-183-015
High Density Residental (HDR22)
High Denisty Residntal
1 22
0,21
Vacant
YES - Current
NO -Privately-Owned
Available
4 4

16.00 SITE 14
708 S Depot
93458
123-161-003
High Density Residental (HDR22)
High Denisty Residntal
1 22

0.57 Vacant
YES - Current
NO - Privately -Owned
Available
10 10

17.54 SITE 15
507 S Oakley
93458
123-090-068
High Density Residental (HDR22)
Base: High Density Residential, Overlay: Planned Development 1 22
1 1 SfR Unit
YES - Current
NO - Privately -Owned
Available
18 18

18.00 SITE 16
450 W Stowell
93458
117-250-023
High Density Residental (HDR22)
High Denisty Residntal
1 22

1.85 Underutilized (two SfD's)
YES - Current
NO - Privately -Owned
Available
30 30

16.22 SITE 17
80081k Oakley Court
93458
123-140-036
High Density Residental ( HDR22)
Base: High Denis ry Residntal -17. Overlay, Planned Development 1 17

2.1 Vacant
YES -Current
NO -Privately -Owned
Available
35 35

16.67 SITE 18
665 W Betteravia Road
93458
117-760-002
High Density Residental (HDR22)
Base: High Denisty Residntal -17, Overlay: Planned Development 1 17

5.6 Underutilized Industrial
YES - Current
NO - Private -Owned
Available
95 95

16.96 SITE 19
745 W Betteravia Road
93458
117-760-001
High Density Residental (HDR22)
Base: High Denis ry Residntal -17. Overla Planned Development 1 17

6.91 Underutilized Industrial
YES - Current
NO - Privately -Owned
Available
117
117

16.93 SITE 20
425 N Curryer
93458
119-172-026
Medium Density Residential (MDR12)
Medium Density Residential
1 12

0.17 Vacant
YES • Current
NO - Privately -Owned
Available
1 1

5.88 SITE 21
SEC Blosser Road and Stowell Road
93458
117.240-028
Low Medium Density Residentail (LMDR-8)
Base: Low Deniiry Residential, Overlay: Planned Development 1 8

11.4 Vacant
YES - Current
NO - Privately -Owned
Available
91 91

7.98 SITE 22
SEC Blosser Road and Stowell Road
93458
117-240-028
Low Medium Density Residentail (LMDR-8)
Base: Low Density Residential. Overlay: Planned Development 1 8

9.1 Vacant
YES - Current
NO - Privately -Owned
Available
72 72

7.91 SITE 23
1600 RISE Main
93454
128-052-023
Lower -Density Residential (LWDR-4(
Base: Single Family Residential 8.000, Overlay: Planned Development 1 4

3.48 Vacant
YES - Current
NO -Privately-Owned
Available
14 14

4.02 SITE 24
215 N Broadway
93454
119-275-016
Commercial District 2
Downtown Specific Plan - Gateway
S
no max

0.47 Vacant
YES - Current
NO - Privately -Owned
Available
14 14

29.79 SITE 25
424 E Main
93454
125-031-020
Commercial District 2
Downtown Specific Plan - Gateway
5 no man

0.45 Parking lot to be vacated
YES - Current
NO - Privately -Owned
Available
14 14

31.11 SITE 26
1700 Suey Road
93454
128-002-027
Low Density Residential (1.09-S)
Base: Single Family Residential. Overlay: Planned Development 1 S

4.34 Vacant
YES - Current
NO - Privately -Owned
Available
17 17

3.92 SITE 27
2005 N Broadway
93458
117-030.095
Low Density Residential (LDR-S)
Base: Low Density Residential, Overlay: Planned Development 1 S

44.8 Underutilized (2-3 detached units and out -buildings) YES - Current
NO - Privately -Owned
Available
179
179

4.03 SITE 28
SEC Blosser Road and Stowell Road
93458
117-240-028
High Density Residental (HDR22)
Base: High Density Residential. Overlay; Planned Development 1 22

8.5 Vacant
YES - Current
NO - Privately -Owned
Available
153
153

18.00 SITE 29
901W Cook St
93458
123-064-008
Medium Density Residential (MDR12(
Medium Density Residential
1 12

0.28 Vacant
YES - Current
NO - Privately -Owned
Available
2 2

7.14 SITE 30
32205 COLLEGE DR
93455
109-200-028
Lower -Density Residential (LWDR4)
Base: Mobile Home Resitlental, Overlay, Planned Development 1 4
5 R.V. Storage yard /Vacant
YES -Current
NO - Privately -Owned
Available
20 20

4.00 SITE 31
SEC Blosser Road and Stowell Road
93458
117-240-028
High Density Residental (HDR22)
Base: High Density Residential, Overlay: Planned Development 1 22

9.9 Vacant
YES - Current
NO - Privately -Owned
Available
179
179

18.08 SITE 32
202 N SUEY RD
93454
128-052-037
Lower -Density Residential (LWDR-4)
Base: Single family Residential 10.000. Overlay: Dlannetl Development 1 4

5.49 15fR Unit
YES - Current
NO - Private -Owned
Available
22 22

4.01 SITE 33
SEC Blosser Road and Stowell Road
93458
117-240-028
High Density Residental (HDR22)
Base: High Density Residential, Overlay: Planned Development 1 22

10.3 Vacant
YES - Current
NO - Privately -Owned
Available
186
186

18.06 SITE 34
1955 A Street
93455
117-770-061
Heavy Commercial Manufacturing
Base: Area 9 Specific Plan Mixed Use/Commercial Profesional Office, no min
no max
68 Vacant
YES • Current
NO - Privately -Owned
Available
260
260

3.82 SITE 35
1795 A Street
93455
117-820-022
Heald Commercial Manufacturing
Base: Area 9 Specific Plan Mixed Use/Commercial Profesional Office, Overla- no min
no max

8.5 Vacant
YES - Current
NO - Privately -Owned
Available
30 30

3.S3
SITE 36
216 W Mill
93458
119-273-003
Commercial District 2
Downtown Specific Plan -Bungalow
5 no max

0.13 Vacant
YES - Current
NO - Private -Owned
Available
4 4

30.77 SITE 37
1571 E Main
93454
128-052-014
Lower -Density Residential (LWDR-dl
Base: Single family Residential 8.800. Overlay: Planned Development 1 4

11.1 1 SfR Unit
YES - Current
NO -Privately-Owned
Available
44 44

3.%
SITE 38
200 W Mill
93458
119-273-007
Commercial District 2
Downtown Specific Plan - Bungalow
5 no max

0.17 Vacant
YES - Current
NO - Private -Owned
Available
5 S

29.41 SITE 39
415 E Orange
93454
125-072-008
A
Commercial District 2
Downtown Specific Plan - Bungalow
5 no man

0.17 Vacant
YES - Current
NO - Privately -Owned
Available
5 5

29.41 SITE 40
415 E Orange
93454
125-072-009
B
Commercial District 2
Downtown Specific Plan - Bungalow
5 no max

0.17 Vacant
YES - Current
NO - Privately -Owned
Available
5 S

29.41 SITE 41
344 E Inger
93454
128-180-015
Medium Density Residential (MDR12(
Medium Density Residential
1 12

0.64 Vacant
YES - Current
NO - Private! Owned
Available
5 5

7.81 SITE 42
173S A Street
934SS
117-820.037
He Commercial Manufactunng
Base: Area 95pecific Plan Mixed Use/Commercial Profesional Office, Overla- no min
no max
15 Vacant
YES - Current
NO -Privately -Owned
Available
60 60

4.00 SITE 43
SEC Blosser Road and Stowell Road
93458
117-240-028
Low Medium Density Residentail (LMDR-8)
Base: Low Deniiry Residential, Overlay: Planned Development 1 8

14.2 Vacant
YES - Current
NO - Privately -Owned
Available
113
113

7.96 SITE 44
SEC Blosser Road and Stowell Road
93458
117-240-028
Low Medium Density Residentail (LMDR-8)
Base: Low Density Residential. Overlay: Planned Development 1 8

9.5 Vacant
YES - Current
NO - Privately -Owned
Available
76 76

8.00 SITE 45
223 W Chapel
93458
119-273-013
Commercial District 2
Downtown Specific Plan - Bungalow
5 no max

0.25 Vacant
YES - Current
NO - Privately -Owned
Available
8 8

32.00 SITE 46
1767 A Street
93455
117-820.036
He Commercial Manufacturing
Base: Area 95pecific Plan Mixed Use/Commercial Profesional Office, Overla- no min
no max
20 Vacant
YES - Current
NO -Privately -Owned
Available
80 00

4.00 SITE 47
618 S Broadway (A)
93458
125-141-009
Commercial District 2
Downtown Specific Plan - Gateway
5 no man

0.31 Vacant
YES - Current
NO - Privately -Owned
Available
9 9

29.03 SITE 48
SEC Blosser Road and Stowell Road
93458
117-240-028
Low Medium Denslry Residentail (LMDR-8)
Base: Low Density Residential. Overlay: Planned Development 1 8

15.1 Vacant
YES - Current
NO - Privately -Owned
Available
121
121

8.01 TOTAL
_.. I
._
1800
2334

Appendix C: Housing Constraints
Contents
Appendix C: Housing Constraints 1
Contents 1
Section C.1 Introduction and Summary 2
C.1.1 Introduction 2
C.1.2 Summary 2
Section C.2 Governmental Constraints 3
C.2.1 Introduction 3
C.2.2 Land Use Controls 3
C.2.3 Building and Housing Codes and Enforcement 28
C.2.4 Permits and Procedures 28
C.2.5 On and Off -site Improvements 37
Section C.3 Non -Governmental Constraints 38
C.3.1 Housing Supply/Conditions 38
C.3.2 Development Costs 39
C.3.3 Availability of Financing 40
C.3.4 Summary 41
Section C.4 Environmental and Infrastructure Constraints 42 C.4.1 Environmental Constraints 42
C.4.2 Infrastructure Constraints 42
Appendix C: Housing Constraints City of Santa Maria 1 C-1

Section C.1 Introduction and Summary
C.1.1 Introduction
This Appendix covers local governmental, non -governmental, and environmental and infrastructure constraints to housing production in Santa Maria.

Housing Constraints Assessment
Governmental Constraints
• Land use controls
(e.g.. zoning)
• Permits and procedures
• On and off -site improvements
C.1.2 Summary
r I -
Non -Governmental
Constraints
• Housing supply/conditions
• Development cost
• Availability of financing
Environmental and
Infrastructure Constraints
• Environmental constraints (e.g..
flood zone. soil contamination)
• Infrastructure constraints (e.g.,
sewer. stormwater)
City policies and regulations, such as the Zoning Ordinance, and market factors outside of the City's control affect the quantity and type of residential development that occurs in Santa Maria.

The following summarizes key governmental and non -governmental constraints to housing development as detailed in this Appendix.
• Santa Maria makes use of discretionary review through Conditional Use Permits and the Planned Development (PD) process, which provides the opportunity for flexibility from conventional zoning standards. The adoption of objective design standards applicable to residential and mixed -use projects and other modifications to these processes will facilitate non -discretionary processes consistent with the Housing Accountability Act. • Parking standards, while reduced within the Downtown Specific Plan, and also open to reduction requests through the PD process, could constrain housing production.

Additional parking options for residential uses should be considered. • Certain zoning provisions will need to be updated to comply with State law (e.g., allow Low Barrier Navigation Centers in mixed -use zones and nonresidential zones where multi- family is allowed (AB 101), allow community/residential care facilities in the Downtown area, etc.)
• Economic conditions in Santa Maria reflect a competitive housing market for both for -sale and rental housing, although lower land costs facilitate more affordable housing development relative to the region.

C-2 1 City of Santa Maria Appendix C: Housing Constraints

Section C.2 Governmental Constraints
C.2.1 Introduction
Local policies and regulations can affect the quantity and type of residential development. Since governmental actions can constrain the development and the affordability of housing, State law requires the housing element to "address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing" (Government Code Section 65583(c)(3)).

The City's primary policies and regulations that affect residential development and housing affordability include: the Zoning Ordinance, the General Plan, development processing procedures and fees, on and off -site improvement requirements, and the California Building and Housing Codes. In addition to a review of these policies and regulations, an analysis of the governmental constraints on housing production for persons with disabilities is included in this Appendix.

C.2.2 Land Use Controls
This section provides an overview of the City's land use controls and their relation to the City's housing supply.

General Plan Land Use Designations
Santa Maria's Land Use Element was most recently amended in 2011. The City is in the process of updating its entire General Plan, which is expected to be completed in Fall 2023.

The existing land use designations that allow a range of residential development types at a variety of densities are described below in Table C-1.

Appendix C: Housing Constraints City of Santa Maria 1 C-3

Table C-1: City General Plan Land Use Designations Allowing Residential General Plan Designation
Description
Residential
Residential Agricultural (RA) provides for a particular residential lifestyle.

Creates a transition area between agricultural and strictly urban uses, as well as Lower -Density Residential
(LWDR-4)
Low Density Residential
(LDR-5)
Low Medium Density
Residential (LMDR-8)
Medium Density Residential
(MDR -12)
High Density Residential
(HDR-22)
Specific Plan (SP)
Commercial / Mixed Use
Commercial/Professional
Office (CPO)
Neighborhood Commercial
(NC)
Encourages high -quality single-family residential development on larger lots.

Encourages new areas with overall densities responsive to the economic considerations of providing new housing, on a wide range of standard sized lots, providing the amenities and open spaces associated with traditional single-family areas, and stabilizing existing areas by discouraging intensification of density.

Encourages densities that are responsive to the economic considerations of providing affordable single-family housing on small lots while at the same time maintaining adequate individual private open space, design flexibility, and the character of a single-family neighborhood.

Encourages new development while stabilizing existing development. Allows a mixture of unit types, while maintaining the feeling of a single-family neighborhood.

Encourages reinvestment in older areas, and provides a land conservation measure by inducing development away from yet undeveloped areas.

Provides for an urban residential environment, preferably close to shopping facilities and existing activity centers, as well as provides an incentive for reinvestment in older established areas.

Encourages comprehensive planning and urban design flexibility for large land areas (over 60 acres) through the adoption of a Specific Plan. Such flexibility allows the City to adopt a set of land use specifications and implementation programs tailored to the unique characteristics of each area.

Provides areas for offices, which may be compatible with a range of other uses.

Provides areas that offer convenience goods and services to local residents without disrupting the residential character of an area. These areas are intended to be small in size and not geared to providing a multitude of more specialized goods and services serving a community -wide or regional market.

Source: Santa Maria General Plan. Land Use Element. 2011 Specific Plans
Santa Maria has adopted many developer -led specific plans over the years to facilitate the orderly development of various residential, industrial, commercial, and mixed -use projects. During the 5th Cycle Housing Element update, approved specific plans and projects accounted for thousands of single-family homes and were key to demonstrating the availability of sufficient vacant land to satisfy the City's Regional Housing Needs Allocation (RHNA) for Above Moderate -Income households. The specific plans relevant to the 6th Cycle Housing Element Update are described briefly below.

C-4 1 City of Santa Maria Appendix C: Housing Constraints

Area 9 Specific Plan
The Area 9 specific Plan was adopted in 2012 after almost nine years in the annexation / planning process. The Area 9 Specific Plan provides detailed guidelines for the development of approximately 890 acres in the western area of the City, envisioned as a major new employment center with industrial, office -professional, R&D, and limited commercial and residential uses.

Residential development (up to 550 dwelling units) can only be introduced into Area 9 as a secondary component of a vertically integrated mixed -use development, only within the Commercial/Professional Office (CPO) zoning district, and only where the residential component location is limited to the development's second floor or above. Areas zoned CPO are located on the eastern side of the Plan area along A Street. Anticipated housing typologies include row housing, loft -type dwellings, and flats arranged either around courtyards or linearly along pedestrian areas.

Downtown Specific Plan
The City's Downtown Specific Plan (DTSP) was initially adopted in 2009 and then amended in 2015. encompasses. The Plan's guiding principles focus on promoting the approximately 391 acres in the center of Santa Maria as a Downtown with an identity that reflects the City's cultural demographics, circulation, economic vitality, land use, and aesthetic improvements. Development standards are intended to promote revitalization through mixed -use development and high - density residential and office uses, organized into five new, Downtown -specific zoning districts each with a unique character, vision, and purpose. The DTSP does not dictate specific intensities such as floor area ratio (FAR) and/or resident density, instead using a form -based approach to development.

Zoning Districts
The Zoning Ordinance is Title 12 of the Municipal Code. The Zoning Ordinance and Zoning Map are available on the City's website, consistent with Government Code Section 65940.1(a)(1)(B).

This section analyzes the Zoning Ordinance and the zoning districts that allow residential development, as well as the zoning districts established by the DTSP. The City has 15 zoning districts that allow residential uses in some capacity. Table C-2 lists these zoning districts with a description of each.

Appendix C: Housing Constraints City of Santa Maria 1 C-5

Table C-2: Zoning Districts That Allow Residential Development Residential
Agricultural
(RA)
Designed and intended for use in areas particularly suited for light agricultural activities and large suburban estates. Permitted uses are intended to encourage light agricultural pursuits and other uses required for or desired by the inhabitants of the community. An area so zoned may provide the land necessary to permit future low -density single-family residential development as the need arises, and for recreational and service facilities in conjunction therewith. Development standards are imposed to assure that such uses will be established and maintained so as to promote an orderly growth of the area.

Single -Family Designed and intended to stabilize and protect the residential character of the district and to Residential (R-1) promote and encourage a suitable environment for family life on a neighborhood basis.

Designed and intended to stabilize and maintain the single-family character of the district and permit a suitable environment for single-family living on a smaller scale by permitting smaller lots with special yard requirements while at the same time maintaining adequate individual private open space. It is intended that the RSL-1 zoning be used in conjunction with subdivisions with southerly oriented side yards with zero sideline homes to facilitate passive and active solar designed homes.

Designed and intended to stabilize and maintain the residential character of the district and permit a suitable environment for family living on a smaller scale by permitting a higher density with two (2) families to the lot while maintaining individual privacy, open space and facilities.

Designed and intended to stabilize and maintain the residential character of the district for high - density apartment living with substantial space for cooperatively used facilities and open spaces.

Single-family
Small Lot
Residential
(RSL-1)
Medium -Density
Residential (R-2)
High -Density
Residential (R-3)
Residential
Mobile Home
Park (RMH)
Established with the purpose and intent to provide an exclusive zone designation that is applied to land for use as a mobile home park only, and to establish rules and regulations by the City concerning standards for lots, yards, parks, landscaping, walls, enclosures, signs, access and vehicle parking in relation to mobile home parks pursuant to the powers granted to the City under Section 18010 of the state Health and Safety Code, and the City names the Planning Commission as its agent for executing the provisions thereof.

Commercial Districts
Commercial
Office and
Professional
Office (CPO)
Central
Business (C-1)
Established to provide a district for office type uses with yard and open space and architectural requirements similar to those in residential districts in order that such uses can be located in close proximity thereto.

Designed and intended to provide for the community's need for a pedestrian -oriented commercial district. The zone shall be used by those retail and service activities which are space intensive and serve the regional market
General
Commercial (C-
2)
Designed and intended to provide for the general business and commercial needs of the City. The zone shall be used by a wide range of retail and service establishments which, because of their economic and activity requirements, are not suited to the central business district.

Miscellaneous Districts
Public Facilities The PF district is designed and intended to provide for those uses and activities which serve the and Institutional public and are generally conducted by government agencies or charitable and philanthropic (PF) nonprofit organizations.

C-6 1 City of Santa Maria Appendix C: Housing Constraints

Table C-2: Zoning Districts That Allow Residential Development Downtown Specific Plan (DTSP) Districts
Consists of the properties along the highly traveled roadways of Main Street and Broadway. New Gateway businesses, facade improvements or new construction should provide a well -designed, dynamic street scene with multi -storied buildings along the sidewalks.

Town Center
Civic
Bungalow
Railroad Loft
Consists of Town Center East mall, Town Center West shopping center, and City -owned parking lots and parking structures within the downtown core. The existing Heritage Walk can be expanded into a paseo system with a series of plazas, retail shops, restaurants, outdoor dining, and public art to continue to draw people even when community events are not occurring.

Centered around McClelland Street, which is also used for many community events. County and City civic services and recreational open space services currently reside in this district, such as the Santa Maria Public Library, the Abel Maldonado Youth Center, the Children's Museum, and Simas Park. New development in this area will complement the existing civic uses such as restaurants, retail, or office uses.

A support area to help transition the downtown core to the existing single-family residential areas.

The area has a mixture of uses and major redevelopment is not expected considering the existing small-scale buildings and residential sized lots. The majority of the redevelopment is anticipated to be infill residential uses or conversion of single-family residences into offices or retail space.

Provides a connection corridor between downtown and Allen Hancock College. This area is predominately newly redeveloped with the construction of the Transit Center in 2011 and Hancock Terrace Apartments in 2015. A number of existing industrial buildings and uses remain in the area that could potentially be reused with light industrial uses or redeveloped in the future as live/work units, student housing, or retail uses.

Source: Santa Maria Municipal Code. Title 12 (Zoning): Downtown Specific Plan Development Standards
Development standards can constrain new residential development if they make it economically infeasible or physically impractical to develop a particular lot, or when it is difficult to find suitable parcels to accommodate development meeting the criteria for building form, massing, height, and density in a particular zoning district. Through its Zoning Ordinance, the City enforces minimum site development standards for new residential uses. Table C-3 summarizes the basic standards for the City's zoning districts that allow residential development.

Appendix C: Housing Constraints City of Santa Maria 1 C-7

Table C-3: Development Standards in Zoning Districts that Allow Residential Development Zoning
District
Min. Area (sf)
Interior
Lot
Corner
Lot
Base Zoning Districts
Max. Density
Min. Lot Width
(ft)
Interior
Lot
Corner
Lot
Max.

Height
(ft)
Primary Structure Min. Setbacks (ft)
Front
Side
Front
Yard
Front
Entry
Garage
Side
Entry
Garage
Interior
Lot
Rear
Min. Open
Space/
Landscaping
RA
R-1'
RS L-1'
R-2'
20,000 1 du/20,000 sf
6,000 7,000 8 du/acre 60
4,500 5,000 — 45
6,000 7,000
R-31
7,000 7,000
CPO
C-1
C-2
5,000
7,000
7,000
Parcel lac:
12 du/ac 234
Parcel lac:
22 du/ac 2
60 60
100
25 30
50 70
50 70
70 50
30 20
25 20
30 20
35 2067
20 20
20 20
15 15
15 15
Not less than 10% of
lot, but need not
exceed 20 ft.
45 Interior: 5 1 story: 10
- Street: 2 stories:
15 20
Street: 1 story: 10
15 2 stories:

Other: 0 15
5 Interior: 5
Other: Street:
10 15
1068
35 7
w/ CUP 10
or PD: Adj. property in a res. zone: 20
50 40' 9
50 7010
8 11
- 8
- 8
- 11
Interior:
10 56
Street:
15 10; 20 20% of the
adjoining site and 300
R-1 sf/unit
10; 20 20% of the
adjoining site and 250
R-1 6 sf/unit
8 _8
15% of the
site
15% of the
site
11 15% of the
site
PF
Max. 50% lot
coverage
35 15
15 10
15% of the
site
C-8 I City of Santa Maria Appendix C: Housing Constraints

Table C-3: Development Standards in Zoning Districts that Allow Residential Development Zoning
District
Min. Area (sf)
Interior
Lot
Corner
Lot
Max. Density
Downtown Specific Plan (DTSP) Districts
Min. Lot Width
(ft)
Interior
Lot
Corner
Lot
Primary Structure Min. Setbacks (ft)
Max. Front Side Min. Open
Height Space/
(ft) Front Front Side Interior Corner Rear Landscaping
Entry Entry
Yard Garage Garage Lot Lot
Gateway
Town
Center
Civic
Bungalow
Railroad
Loft
70 70
70 4012
60 Main/Broadway: 0
Remainer of area: 15 13
5 13
10 13 15% 13
sf = square feet 1 ft = feet 1 du = dwelling unit 1 ac = acre' ROW = right-of-way 1 CUP = conditional use permit 1 PD = Planned Development 1 The City Council through a subdivision map may permit lots smaller than specified in subsections (a) or (b) of this section, provided overall project density is consistent with the General Plan. 2 Maximum density depending on land use designation (LWDR-4 [4 du/ac], LDR-5 [5 du/ac], LMDR-8 [8 du/ac], or MDR -12 [12 du/ac]). 3 Land that is presently developed with rental assisted, affordable housing for senior or handicapped individuals, or land that is contiguous to and developed in conjunction with property with existing affordable senior or handicapped housing, may be developed at a density not to exceed 22 dwelling units per acre. This is provided that the unit size of the proposed dwellings does riot exceed 600 sf and the project is properly conditioned to provide rental assisted, affordable housing for both senior and handicapped individuals and the land is designated as Medium Density Residential (MDR) on the General Plan.
° Any lot of 6,000 sf or less of net land area may have two dwelling units provided all setback, open space, landscaping, and parking requirements of the R-2 zoning district can be met. 5 In an R-3 zoning district, developments that encompass entire blocks or two or more sides of a block require a minimum 20 -foot setback on the sides fronting the street. 6 In the R-3 zoning district, setback guidelines for buildings exceeding 35 feet: front, side and rear building setbacks may increase a minimum of 5 feet to property line for each incremental increase in height of 10 feet, at each floor, above in height, beyond what is required under Section 12-8.10.a, b and c. ' When a building exceeds 1 story or 18 feet in height and is within 100 feet of a residential zoning district, a conditional use permit is required. 8 A 10 -foot setback is required from the side property line adjoining the street on a comer lot, or when a lot abuts a residential lot or parcel of land. 9 Within the boundaries of the Central Redevelopment Project - Califomia NDPA-1-2, building height is limited to 75 feet, subject to the approval of a CUP or planned development permit. 10 Buildings in excess of 40 feet shall require a CUP or planned development permit when adjacent to a residential zoning district. Buildings in excess of 70 feet shall obtain written authorization from the City of Santa Maria Fire Department demonstrating the City's capability to respond to a fire in that building. 11 For buildings under 40 feet in height and adjacent to property in a residential zone, a 10 foot setback is required in the front, side, and rear yards. For buildings over 40 feet in height and adjacent to property in a residential zone, there shall be a ratio where for each 10 feet (or fraction) of building height, there shall be a minimum 10 feet of additional setback (above the base 10 feet of setback) for the front, side, and rear yard.
12 Buildings up to 60 feet in height may be approved on sites near the Main/Broadway intersection. 13 Can be reduced to 0 through the Downtown Permit process.

Source: Santa Maria Municipal Code, Title 12 (Zoning)
Appendix C: Housing Constraints City of Santa Maria 1 C-9

Development Standards Analysis
Santa Maria's basic development standards allow a moderate amount of density and intensity for residential development. There is only one large lot, single-family zoning district (RA), and this designation is applied to a single parcel on Stowell Road on the far western edge of town.

However, maximum densities in the R-2 and R-3 zoning districts are relatively low and present a potential constraint. Increasing these densities would stimulate higher density housing and enable the development of housing types which are smaller and more affordable.

The R-2 and R-3 zoning districts allow maximum building heights of 30 feet and 35 feet, respectively, which have not posed an undue constraint on the development of multi -family housing. For example, the Centennial Gardens Apartments project (approved by Planning Commission on October 21, 2020) consists of eight, three-story residential apartment buildings located in the PD/R-3 zoning district. While this project utilized a density bonus to enable greater density (up to 22 du/ac, greater than the allowed 19 du/ac), it was otherwise able to conform to the applicable development standards, with a minor modification to the building height standard (35 feet) to allow the tallest portions of the buildings to reach 37 feet. Although flexibility is allowed through density bonus and PD provisions, the City will evaluate site development requirements to ensure that additional density in the R-2 and R-3 zones may be accommodated, including but not limited to revisions to the maximum building height, setbacks, and parking. (Program 3.F).

Other multi -family developments in the R-2 and R-3 zoning districts have also achieved maximum density and above (with density bonus requests) in recent years. Some of these projects were approved with included modifications to required setbacks and other development standards through the Planned Development process, which demonstrates how the City's Planned Development Permit Process facilitates residential density. For example, the Avante Apartments project (approved by the Planning Commission on November 16, 2022) consisted of four three- story residential apartment buildings located in the PD/R-3 zoning district. The applicant requested a modification to allow for the proposed carports to encroach into the required front and side yard setbacks in order to provide increased building visibility and sunlight into the lower floors of the units. The requested setback reductions ranged from 5-10 feet into the required 20 - foot front setback and 5 feet into the required 10 -foot side yard setback; the apartment buildings themselves otherwise met the PD/R-3 zone's setback requirements. Although flexibility is allowed through the City's Planned Development provisions, the City will evaluate site development standards in the R-2 and R-3 zoning districts that include but are not limited to reductions in setbacks, increases in maximum height limits, and parking reductions to better accommodate higher -density development (Program 3.F).

Additionally, the City frequently relies on the CUP process to resolve adjacency issues, such as the provision that buildings over one story in the CPO zoning district and within 100 feet of a residential zoning district require a CUP. As explored more thoroughly in the "Provisions for a Variety of Housing" subsection, the adoption of objective design standards under Program 3.B will reduce the City's reliance on the CUP process and streamline development.

C-10 1 City of Santa Maria Appendix C: Housing Constraints

The City's Planned Development (PD) Overlay combines with the underlying zone and allows an applicant to request development standard flexibility to achieve superior project design and community benefit. A PD Permit is processed simultaneously with any Conditional Use Permit required of the project, and through the PD process reductions for setbacks, landscape area, parking requirements, and exceptions to building height limits may be granted. Likewise, the City's Downtown Permit process enables applicants to request development standard reductions for setbacks, landscape area, parking requirements, and modification to building height limits. See the Permits and Procedures section below for additional information.

Parking Requirements
Table C-4 displays the parking rates for residential land uses in the Zoning Ordinance.

Table C-4: Residential Parking Rates
Land Use Type Required Number of Spaces J
Residential Uses
Dwelling, single-family 2 per dwelling unit 12
Dwelling, two-family, or multi -family 1 2 per dwelling unit 3 Condominiums 2 per dwelling unit 1
1 guest space per 2 units
Mobile home parks 2 per unit
1 guest space per 4 mobile home sites
Units 600 sf: 1 per unit, plus 1 per staff member
Boardinghouses 1 per habitable room 1
Efficiency units 1 per unit, plus 2 per onsite manager unit Downtown Specific Plan (DTSP) and Mixed -Use Projects 4'6 Units 600 sf 1 per dwelling unit 6
'Within a garage or carport.
2 Single-family residential units which existed or were under construction prior to October 22, 1976 and where additional living area is added after October 22, 1976 shall provide 2 off-street parking spaces, 1 of which must be within a garage or carport and 1 of which must be on a flat, paved pad accessible directly from the driveway or the public way. This requirement shall not apply when additions are made to the unit that do not constitute an increase in living area and in no case will prohibit the addition of living area to a single-family residence when there is no accessible space available for the required additional parking space. 30ne within a garage or carport.

Reductions to parking ratios may be requested through the Downtown permit process. 5 In mixed -use projects, through the Administrative Use Permit process, the Zoning Administrator, may approve up to a ten percent (10%) reduction in parking. The Planning Commission, through a Conditional Use Permit or Planned Development Permit. may approve up to a twenty-five (25%) reduction in parking if the mixed use development incorporates one or more traffic -reduction methods listed in SMMC Section 12-49.08(d).
s In mixed -use projects, apartments located outside the original four-square miles of the City (Section 12-32.07A) must provide covered parking. condominiums must always provide covered parking, while efficiency units do not require covered parking.

Source: Santa Maria Zoning Ordinance. Section 12-32.03 (Off -Street Parking Spaces Required): Downtown Specific Plan Appendix C: Housing Constraints
City of Santa Maria 1 C-11

Parking Requirements Analysis
The City typically requires two spaces per single residential dwelling unit, including in two-family units, multi -family units, condominiums, and mobile home parks. Reduced requirements exist for uses that serve residents with low vehicle ownership rates (e.g., senior housing), mixed -use projects (per Chapter 12-49), efficiency unit projects (per Chapter 12-52) and projects within the DTSP area.

While covered parking is required for both the required single-family parking spaces and at least one of the required multi -family parking spaces, garages or underground parking is not required.

The number of spaces required could reduce the number of units that could be built, and the parking rates could discourage smaller units (e.g., studios and one -bedroom units), as the parking required is the same regardless of unit size (outside the DTSP area or mixed -use projects). For mixed -use projects, lower parking ratios are required (i.e., 0.5 uncovered spaces for units smaller than 400 square feet, 0.75 uncovered spaces for units 400 to 600 square feet, and 1.0 space for units greater than 600 square feet).

In the Downtown area, parking requirements are further reduced depending on location. The DTSP divides the Downtown area into three Parking Incentive Zones, and properties located in Zone B and within 1,250 feet of a City parking lot/structure have their parking requirement reduced by 50 percent.' For example, multi -family units greater than 600 square feet and located in Zone B would require 0.5 parking spaces per dwelling unit, rather than the one parking space per dwelling unit indicated in Table C-4.

Section 12-32.12 (Tandem Spaces) allows tandem parking spaces for residential units where at least two spaces are required for the unit and where the spaces in tandem serve the same residential unit. While these provisions may not be used to satisfy requirements for guest parking spaces, staff parking spaces, shared parking in a mixed -use project, or other parking not assigned to a specific residential unit, they have allowed more units to be accommodated on a site.

Furthermore, the City adopted an amendment to multi -family residential parking standards in 2018, allowing required parking spaces to be located within the front setback of sites, along with allowing required parking in a tandem space configuration.2 This change was implemented to achieve higher residential density while satisfying parking requirements.

Section 12-32.22 (Consolidated and Shared Parking) allows the consolidation of the required parking area for several uses into one central parking area located within 200 feet of any use and the reduction of the total number of parking stalls to be jointly provided by the consolidation.

However, consolidation must be approved by Planning Commission through a conditional use permit process.
' City of Santa Maria, Downtown Specific Plan, pp.44-45. 2 City of Santa Maria, 2020-2025 Consolidated Plan, p 145.

C-12 1 City of Santa Maria Appendix C: Housing Constraints

While the City offers some parking reductions and flexibility, under Program 3.E, the City will further assess parking standards and reduce requirements to establish lower rates for smaller units (i.e., studios and one -bedroom units) and add more incentives where possible.

Cumulative Analysis of Land Use Controls
Considering the impact of land use controls cumulatively, the multi -family zones generally accommodate maximum density; however, potential limiting factors are building height, setbacks, and parking. These standards may impact the overall number of units that can be built and are the most commonly requested standards for concessions or waivers during density bonus application requests. The City's Planned Development Permit process provides developers with the opportunity to reduce setback, landscape, and parking requirements, and increase building height, similar to the concessions under the density bonus process but without requiring affordability or senior restrictions (Program 3.C). As noted above, increasing the allowed densities in the R-2 and R-3 zoning districts (or introducing a new residential district with higher density) will better facilitate residential development (Program 3.F). Additionally, Program 3.E will modify required parking ratios to reduce the impact these standards have cumulatively on housing development.

Design Standards and Guidelines
Design standards and guidelines are evaluated as they have the potential to increase development costs and extend the permitting process. In the Zoning Ordinance, each base residential zoning district (RA, R-1, RSL-1, R-2, and R-3) contain provisions for architectural and aesthetic standards that address exterior building materials, roof overhang/pitch, roofing materials, and (in the R-2 and R-3 zoning districts) window treatments.

Outside the Zoning Ordinance, the DTSP provides design guidelines for new development and re -use of existing buildings in Chapter II (Land Use & Development). These provisions apply to any addition, exterior remodel, relocation, or new construction requiring a Downtown Permit within the DTSP area (see Permits and Procedures section below for more information). The guidelines address site planning and design, building design and character, building mass and articulation, and more. In a following section, the DTSP also provides guidance on architectural styles that reflect certain interpretations (e.g., Mission, Renaissance Revival) or periods (early 1900's commercial, contemporary industrial), listing common architectural details that are paired with example images.

Nearly all of the DTSP design guidelines are described in general terms with no specific dimensions for applicants to apply to projects. For example, in the Building Mass and Articulation subsection, it is recommended that "massing of multi -tenant buildings and multi -family buildings should articulate individual units to avoid long expanses of wall planes." Guidelines such as these are subjective, only providing vague direction on building design. While the guidelines lack specificity, no Downtown Permit application has been denied based on guideline interpretation.

However, a program to develop objective residential design standards is included as Program

3.B.

Appendix 0: Housing Constraints City of Santa Maria 1 C-13

Provisions for a Variety of Housing
The City has adopted provisions in its Zoning Ordinance that facilitate a range of residential development types. Table C-5 provides a list of housing types and the zoning districts in which they are permitted or require a conditional use permit.

C-14 I City of Santa Maria Appendix C: Housing Constraints

Table C-5: Residential Uses Permitted by Zoning District Land Uses
Residential Districts
Commercial Districts
Misc. 1
Districts
Downtown Specific Plan (DTSP) Districts
RA
R-1
RSL-
1 R-2
R-3
RMH
CPO
C-1
C-2
PF
Gateway
Town
Center
Civic
Bungalow
Railroad
Loft
Single -Family
Dwelling
ADUs/JADUs
Duplexes/2 or
more units
Triplexes/3 or
more units
Fourplexes/4 or
more units
CUP
CUP
P3
P3
P3
P3
Multi -Family
Dwelling
Emergency
Shelters
P
P
CUP
P
P
P
P
See multi -family uses above for zoning districts not in Downtown area Transitional
Housing
P
P
Supportive
Housing
Manufactured
Housing
P
P

P CUP CUP
P

P P P P
p2
P3 P3 P3 P3 P3
P3
P3
P3
P
P
P
P
P
P
P
P
P
P
P
See analysis below
Mobile Home
Parks
Boardinghouses
Student
Housing
Senior Citizen
Housing
Appendix C: Housing Constraints
P
P
P
P
P
P
CUP
CUP
P
CUP
CUP
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
City of Santa Maria I C-15

Table C-5: Residential Uses Permitted by Zoning District Land Uses
Residential Districts I
Commercial Districts
Misc. 1
Districts
Downtown Specific Plan (DTSP) Districts
RA
R-1
RSL-
1 R-2
R-3
RMH
CPO
C-1
C-2
PF
Gateway
Town
Center
Civic
Bungalow
Railroad
Loft
Efficiency Unit
Projects
P
Community
Care Facilities
(56) 1
Community
Care Facilities
(>7) 1
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
CUP
CUP
CUP
P
P
P = Permitted Use I CUP = Conditional Use Permit required I — = Not Permitted/No Guidance Called "Care for Unrelated Persons" in the Zoning Ordinance.

On sites with an existing residential single or multi family dwelling.

See Downtown permit process in Section C.2.4 Permits and Procedures.

P
P
P
Source: Santa Maria Municipal Code. Title 12 (Zoning)
C-16 I City of Santa Maria Appendix C: Housing Constraints

Multi -Family Rental Housing
Other than a duplex being a permitted use in the R-2 zone, and triplex being a permitted use in the R-3 zone, a conditional use permit (CUP) (or Planned Development Permit in the PD overlay) is required for multi -family dwellings outside of the Downtown area. In the DTSP, "multi -family or vertical mixed use" is permitted by -right in all Downtown zoning districts. To facilitate housing, the City will adopt objective design standards to reduce the CUP requirement for multi -family dwellings and residential mixed -use (Program 3.B).

Additionally, the City should revise its definitions of residential developments which contain multiple dwelling units to resolve inconsistencies. For example, while "duplexes" are permitted by - right in both the R-2 and R-3 zoning districts, "two detached dwelling units" are permitted in the R-2 district, but not in the R-3. Additionally, "dwelling groups" are permitted by -right in the R-3 zoning district, but "Residential developments with a total of four (4) or more dwelling units on the property" require a CUP. However, in the R-2 zoning district, "Dwelling groups, triplexes and fourplexes, when density requirements can be met" are listed as requiring a CUP. Thus, it is not clear if a fourplex in the R-3 zoning district would be considered a "dwelling group" and permitted by -right, or a "residential development with a total of four or more dwelling units on the property" and require a CUP.

The City regulates condominium conversions in Chapter 12-46 (Residential Condominiums, Stock Cooperatives, Community Apartments, and Planned Unit Developments). Applicants for conversion projects must submit, in conjunction with a required CUP or PD permit application, the information listed in Section 12-46.06 (Reports Required for Conversion).

Accessory Dwelling Units
ADUs and Junior Accessory Dwelling Units (JADUs) are permitted by -right on all residential lots developed or proposed to be developed with single-family dwellings or multi -family dwellings.

They must be located, developed, and operated in compliance with the standards of Chapter 12- 56 (Accessory Dwelling Units). These standards were updated in June 2021 to reflect recent amendments to State law.

Applicants for an ADU must submit an application for building permit review to the Building Division for ministerial approval (or as part of a building permit application). No discretionary review is required, in compliance with State law. Additionally, the City's Planning Division provides an info sheet to assist homeowners in the construction of compliant ADUs and JADUs.

HCD conducted a preliminary review of the City's ADU Ordinance and identified several components that are now out of compliance with State law which became effective in January 2023. This included the following:
• Allow for one ADU within the proposed space of a single-family dwelling unit and one detached, new construction ADU to comply with Government Code §65852.2 (e)(1)(A)); Appendix C: Housing Constraints City of Santa Maria 1 C-17

• Revise height requirements and language regarding ministerial approval for ADU to comply with SB 897;
• Remove subjective standards regarding fire sprinkler requirements, ADU access, and architectural/design standards (or revise to be objective); • Revise design standards to not preclude the development of "statewide exemption ADUs" as described in Government Code §65852.2 (e); and
• Allow an ADU to be sold or conveyed separately from the primary residence to a qualified buyer to comply with Government Code §65852.26.

Based on HCD's review, the City will amend its ADU Ordinance as necessary to comply with State law as part of Program 1.K.

Emergency Shelters and Low -Barrier Navigation Centers
The Zoning Ordinance defines an emergency shelter in Chapter 12-53 (Emergency Shelters) as "housing with minimal supportive services for homeless persons, and where occupancy by any one homeless person is limited to six months or less within a 12 -month period." This definition is concurs with the definition in Health and Safety Code Section 50801, which defines an emergency shelter as housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less. No individual or household may be denied emergency shelter because of an inability to pay.

The City permits emergency shelters by -right and without discretionary action in the CPO and PF zoning districts and with a CUP in the CC, C-1, and C-2 zoning districts, provided they meet the site development standards in Table C-3 and the supplemental standards of Chapter 12-53 (Emergency Shelters). These supplemental standards are described in Section 12-53.05 (Establishment and Management of Emergency Shelters; Responsible Party; Criteria) and include:
• Shall not be located within 300 feet of an existing emergency shelter. • Shall contain a maximum of 40 beds and shall shelter no more than 40 persons. • Shall provide one parking space for every 10 beds, or one space for each residential unit, whichever is greater, plus one space for each person staffing the shelter. • Shall utilize external lighting that is stationary and directed away from adjacent properties and public rights -of -way; consists of low -intensity, full -shielded, downward -direction fixtures placed uniformly throughout the sites; and is a minimum average maintained 0.5 foot-candles of light intensity not transmitted or reflected to surrounding properties or streets.
• Shall provide on -site waiting and client intake areas that are located internal to the structure, or shall be a designated area fully screened from view of the public right-of-way and neighboring properties.

C-18 1 City of Santa Maria Appendix C: Housing Constraints

• Shall be managed onsite by individuals designated by an eligible organization, with documentation submitted to the Community Development Department prior to establishing the emergency shelter.
• Shall limit each individual's stay in the shelter to no more than 6 months in a 12 -month period.
• Shall provide at least one on -site supervisor at all times to address and resolve security issues, with documentation submitted to the Community Development Department prior to establishing the emergency shelter including the name and contact information of the individuals or company providing on -site security.

These supplemental standards are objective and in compliance with State law (Government Code 65583(a)(4)(A)), including the minimum separation requirement of 300 feet and minimum parking.

Although the number of required parking spaces for an emergency shelter is lower compared to that required for rest homes (see Table C-4), it does not reflect the parking necessary to only accommodate shelter staff. Therefore, these requirements will be amended to be consistent with State law, which requires sufficient parking for emergency shelter staff, provided that it is not more parking than is required for other residential or commercial uses within the same zone (Government Code Section 65583(a)(4)(A)) (Program 4.C).

Parcels in the CPO zoning district are primarily located east of Broadway along Main Street, Stowell Road, and Betteravia Road and are often combined with a PD zoning district designation.

PF zoning district parcels are distributed throughout the City, with the largest parcels in the central part of town and occupied by schools, parks, churches, and cemeteries. Many of these parcels are currently occupied, though a handful could be reasonable converted into shelter facilities, especially in the CPO zoning district. Many of these parcels are also within one half mile of public transportation, retail, and other supporting services that shelter occupants may have a need for.

The surrounding uses tend to be residential or retail/auto-oriented businesses, and not heavy industrial operations. Additionally, the surrounding uses may offer potential employment opportunities for shelter occupants who can pursue employment.

AB 2339 (Emergency Shelters Act of 2023) among other things, requires local jurisdictions to accommodate emergency shelters in zones which also allow residential development. The City mixed -use regulations (Zoning Ordinance Chapter 12-49) allow 100 percent residential uses in the CPO zoning district if located within the four-square mile area of the Downtown.

In 2022, the Point -in -Time (PIT) Count identified 457 people experiencing homelessness in Santa Maria (see Appendix A, Table A-21), 160 sheltered and 297 unsheltered. As the City limits emergency shelters to a maximum of 40 beds, seven to eight sites would be necessary to house all unsheltered homeless individuals in the City. There are existing sites within the City which could be utilized to permit emergency shelters, and Table C-6 lists those potential sites that are in compliance with AB 2339 and result in capacity over 297 beds.

Appendix 0: Housing Constraints City of Santa Maria 1 C-19

Table C-6: Potential Emergency Shelter Sites
Address
APN
Zoning 1
General
Plan
Lot Size
Site
Capacity
(est. # of
beds)
Current
Use
Surrounding Uses
Proximity to Services
1016 E Main
St.
125-053-004
PD/CPO
CPO

0.26 40
Vacant
auto services,
restaurants,
professional offices,
medical offices,
freeway

0.25 miles to Von's
grocery.

0.3 miles to Hospital
610 E Chapel
St.
121-244-005
CPO
CPO

0.6 40
Vacant
restaurants,
professional offices,
medical offices,
commercial, retail

0.1 mile to Vons
Grocery and other
commercial and retail
800 Blk of E.

Chapel St.
121-242-010'
011, and 012
CPO
CPO

0.49 40
Vacant
restaurants,
professional offices,
medical offices,
commercial, retail

0.1 mile to Vons
Grocery and other
commercial and retail
526 E Plaza
Dr.
128-067-027
PD/CPO
CPO

1.4 40
Vacant
(former
parking
area)
professional offices,
medical offices, low
density residential,
cemetery
Within 0.5 miles of
Vallarta grocery and
other commercial and
retail
510 E. Stowell
Rd.
128-067-003
PD/CPO
CPO

0.45 40
Vacant
professional offices,
medical offices, low
density residential
Within 0.5 miles of
Vallarta grocery and
other commercial and
retail
200 Blk of E.

Donovan Rd.
128-013-059
CPO
CPO

0.5 40
Vacant
Retail, medical office,
restaurants, low
density residential

0.3 miles to grocery
and other commercial
and retail
117 W Bunny
Ave.
119-086-008
CPO
CPO

0.54 40
Medical
office
Office, retail, low
density residential

0.1 miles to grocery,
restaurants, and retail
305-327 Plaza
Dr.
128-065-007
PD/CPO
CPO

2.14 40
Office
Office, medical office,
high density residential
retail

0.2 miles to grocery,
restaurants, and retail
123 S College
Dr
125-043-011
PD/CPO
CPO

2.4 40
Office
Office, medical office,
retail, low density
residential

0.1 miles to grocery,
restaurants, and retail
TOTAL
3602
'Emergency shelters would also be processed by right in the PD/CPO Zon ng District in the same by -right manner as they would be in the CPO Zoning District. All sites are governed by the City's mixed -use regulations and located within the 4 -square mile area around Downtown, allowing 100% residential projects on these sites in addition to emergency shelters. 2 Site capacity calculations range from 283 square feet per bed (0.26 -acre site) to 2,614 square feet per bed (2.4 -acre site).

Source: City of Santa Maria
As previously noted with the CPO zoning district, which typically serves as a transition between residential and commercial zones, these potential sites are adjacent to existing residential, retail, and office developments. Each of the sites is near the core of Santa Maria, and located either on, or within close walking distance of, Santa Maria Regional Transit routes and stops and services.

Some of the potential shelter sites identified in Table C-6 are existing office or medical office C-20 1 City of Santa Maria
Appendix C: Housing Constraints

locations that the City has observed either have a low occupancy, or a frequent turn -over of tenants. Each of these sites has on -site parking. The City has come to realize the potential of these non -vacant office sites to become shelter facilities through a recently completed Emergency Shelter project.

In September 2022, the City approved building permits for the conversion of an existing structure located at 801 East Chapel Street from a former occupied medical office building to a 40 bed emergency shelter facility. This facility, located on a 0.6 -acre site in a CPO zoning district, will also provide day services to individuals in need. The City received building permit applications for the Tenant Improvement of the interior in January 2022, building permits were approved in September 2022, and construction was completed and the facility began operating in July 2023.

The facility is adjacent to high and medium density residential developments, office, and medical office facilities, and less than a tenth of a mile to a grocery, restaurants, and other retail. The identified non -vacant emergency shelter sites are similar to the former conditions of this project site, now operating as an emergency shelter. Further, the City is not aware of any leases, contracts, or conditions that would perpetuate the existing office uses.

The Zoning Ordinance does not address low barrier navigation centers (LBNCs), defined as Housing First, low -barrier, service enriched shelters focused on moving people into permanent housing that provide temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing (Government Code Section 65660). State law requires LBNCs to be permitted by -right in areas zoned for mixed -use and nonresidential zoning districts permitting multifamily uses provided they satisfying the provisions establish by AB 101 (see Government Code Section 65662). Program

4.0 is included to address the permitting for Low Barrier Navigation Centers.

Furthermore, under Program 4.C, the City will update the definition of emergency shelters as needed to comply with Government Code Section 65583(a)(4) as amended by AB 2339.

Transitional Housing and Supportive Housing
In addition to emergency shelters, transitional and supportive housing are used to further facilitate the movement of homeless individuals and families to permanent housing. They can serve those who are transitioning from rehabilitation or other types of temporary living situations (e.g., domestic violence shelters, group homes, etc.).

Transitional housing is defined in Government Code Section 65582 as buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined point in the future, which shall be no less than six months. Health and Safety Code Section 50675.14 defines supportive housing as housing with no limit on length of stay, that is occupied by a target population, and that is linked to an on -site or off -site service that assists residents in retaining housing, improving their health, and maximizing their ability to live and (where possible) work in the community.

Appendix 0: Housing Constraints City of Santa Maria 1 C-21

Transitional and supportive housing must be allowed in all zoning districts that allow residential uses and subject to the same development standards that apply to other residential uses of a similar type within these zoning districts. Furthermore, AB 2162 (Government Code Section 65650-65656) requires supportive housing to be allowed by -right in zoning districts where multi- family and mixed -uses are permitted, including nonresidential zoning districts that allow multi- family uses, if the proposed development meets certain criteria (e.g., deed restricted for 55 years to lower income households, serving "target population" of homeless individuals, minimum area dedicated for supportive services, etc.).

In Santa Maria, transitional and supportive housing are defined in Section 12-2.140.1 (Supportive Housing) and Section 12-2.141.3 (Transitional Housing) in a manner that concurs with State law, with both sections stating these land uses shall be considered a residential use of property only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. However, at the time the Transitional and Supportive Housing Ordinance was adopted, the City chose to not regulate these as distinct uses in each of the specific zoning districts, instead relying on the regulatory language in Chapter 12-2 (Definitions) to implement these provisions.

For further clarity, the Housing Element includes Program 4.D to amend the Zoning Ordinance to include transitional and supportive housing by -right as a cited permitted use in each of the zoning districts which allow residential uses, subject to the same standards of similar dwellings.

Farmworker (Employee) Housing
State law provisions related to farmworker housing (also called employee housing) derive from Health and Safety Code Section 17021.5, Section 17021.6, and Section 17021.8. Section 17021.5 generally requires employee housing for six or fewer persons to be treated as a single- family structure and residential use. Section 17021.6 generally requires that employee housing consisting of no more than 36 beds in group quarters designed for use by a single family or household to be treated as an agricultural use. No conditional use permits, zoning variances, or other zoning clearance are to be required. Section 17021.8 generally requires that an eligible agricultural employee housing development be subject to a streamlined, ministerial approval process and objective development standards if located on land designated as agricultural. The City currently has a Voluntary Compliance Agreement (VCA) with HUD to comply with employee housing requirements, which includes procedures for a designated Employee Housing Resource Officer (EHRO) to follow if a complaint is filed regarding Employee Housing (see Appendix F, Section F.2.1).

According to the most current data from the U.S. Department of Agriculture Census of Farmworkers, there was a total of 22,985 farmworkers in Santa Barbara County in 2017, and about 43 percent of farmworkers in Santa Barbara County were seasonal workers (see Appendix A, Table A-18). Although publicly available data does not provide an estimate specifically for the number of farmworkers in Santa Maria, about 22 percent of residents work in the agriculture and forestry industry according to 2020 ACS data (see Appendix A, Figure A-6), and nearly a quarter C-22 1 City of Santa Maria Appendix C: Housing Constraints

of all jobs in Santa Maria are in the agriculture and forestry industry (see Appendix A, Figure A- 5).

While farmworker housing has been developed in the City, the Zoning Ordinance does not explicitly identify farmworker housing as a use in any zone due to the VCA. The City does not restrict the development of housing for farmworkers to any particular residential zoning district.

Since the VCA expires on July 15, 2026, Program 4.E is included for the City to adopt standards consistent with State law into the Zoning Code before expiration of the VCA.

Efficiency Unit
An efficiency unit is considered a small, single -room occupancy affordable housing unit that can serve as an entry point into more stable or long-term housing for people who previously experienced homelessness. They can also help jurisdictions meet their projected housing need for acutely and extremely low-income households.

In Chapter 12-52 (Efficiency Unit Projects), the City defines an "efficiency unit" as a dwelling unit with a floor area of 519 square feet or less and an "efficiency unit project" as five or more efficiency units permitted in commercial areas through a planned development (PD) permit. The definition provides as an example the conversion of a motel into five or more efficiency units rented for longer than 30 days.

Subject to the issuance of a PD permit in an area with a PD overlay, an efficiency unit project may be built by -right in the C-1 and C-2 zoning districts subject to the supplemental standards provided in Section 12-52.04 (Special Standards Applicable to an Efficiency Unit Project). These standards require:
• A caretaker's residence;
• Parking requirements at the rate of one space per efficiency unit, two spaces for an onsite manager unit, and one lockable bicycle parking space per efficiency unit; • Landscaping covering 15 percent of the lot area, incorporating Low -Impact Development (LID) techniques;
• A minimum of 150 square feet of common exterior open space per efficiency unit project, or 10 square feet per efficiency unit;
• At least one recreational amenity per five efficiency units in addition to common open space; and
• A minimum of 150 square feet of common interior area, or 10 square feet per efficiency unit, with at least one fixture amenity per five efficiency units.

Appendix C: Housing Constraints City of Santa Maria 1 C-23

Applications for efficiency unit projects are processed consistent with the procedures for a PD permit described in Chapter 12-35, Article 2 (Planned Development Permits), subject to the Planning Commission making the following supplemental findings:
• That the efficiency unit project's proposed structures, landscaping, hardscape and amenities will result in an overall superior setting for the Santa Maria community by improving the aesthetics of the built environment;
• If applicable, the efficiency unit project can significantly extend the useful life of any structures existing on the site; and
• The efficiency unit project's proposed operations will result in an overall superior living environment for the residents of the project by expanding housing opportunities and providing access to clean, comfortable, and safe living conditions.

Overall, these regulations are adequate for facilitating the construction of new efficiency dwelling unit projects and/or the structural conversion of transient occupancy uses into single -room occupancy projects, thus increasing the number of small, affordable units for acutely and extremely low-income individuals.

Manufactured Homes
Government Code Section 65852.3 requires cities to allow and permit manufactured homes on a permanent foundation in the same manner and in the same zone as a conventional stick -built structure, subject to the same development standards that a conventional single-family home on the same lot would be subject to.

While it is the City's practice to treat manufactured homes on a foundation as a conventional single-family home (consistent with Government Code Section 65852.3), the Zoning Ordinance does not specifically cite manufactured home as a distinct permitted use in the residential zones.

The sole reference to manufactured homes in located in Chapter 12-56 (Accessory Dwelling Units), where manufactured homes are identified as being included in the Ordinance's definition of an ADU.

Under Program 1.G, the City will amend the Zoning Ordinance to clarify compliance with State law and explicitly allow manufactured homes on a permanent foundation, subject to the same regulations as single-family homes.

Housing for Persons with Disabilities
The Lanterman Developmental Disabilities Services Act (Sections 5115 and 5116) of the California Welfare and Institutions Code declares that mentally and physically disabled persons are entitled to live in normal residential surroundings. This classification includes facilities that are licensed by the State of California to provide permanent living accommodations and 24 hour primarily non -medical care and supervision for persons in need of personal services, supervision, protection, or assistance for sustaining the activities of daily living. It includes hospices, nursing homes, convalescent facilities, and group homes for minors, persons with disabilities, and people in recovery from alcohol or drug addictions.

C-24 1 City of Santa Maria Appendix 0: Housing Constraints

Health and Safety Code Section 1502 defines community care facilities as "any facility, place, or building that is maintained and operated to provide nonmedical residential care, day treatment, adult daycare, or foster family agency services for children, adults, or children and adults, including, but not limited to, the physically handicapped, mentally impaired, incompetent persons, and abused or neglected children." This definition includes a wide variety of facilities, including foster family homes, small family homes, and group homes.

Health and Safety Code Section 1569.2 defines residential care facilities for the elderly as "a housing arrangement chosen voluntarily by persons 60 years of age or over, or their authorized representative, where varying levels and intensities of care and supervision, protective supervision, personal care, or health -related services are provided, based upon their varying needs, as determined in order to be admitted and to remain in the facility. Persons under 60 years of age with compatible needs may be allowed to be admitted or retained in a residential care facility for the elderly."
State law requires local governments to treat both facility types with six or fewer residents as a residential use and subject to the same development standards as a single-family dwelling.

Furthermore, no conditional use permit, zoning variance, or other zoning clearance shall be required of a community/residential facility that serves six or fewer persons that is not required of a family dwelling of the same type in the same zone. The residents and operators of a residential care facility shall be considered a family for the purposes of any law or zoning ordinance that relates to the residential use of property. However, "six or fewer persons" does not include the operator, operator's family, or persons employed as staff.

The City defines a "Care of Nonrelated Persons" for seven or more and six or fewer persons in Sections 12-2.29 and 12-2.30, respectively, as a State -licensed care home giving nonmedical services on a 24 -hour a day basis to mentally handicapped, physically handicapped, disabled or aged persons, or dependent and neglected children. These definitions concur with the State's definition of community care facilities and does not limit their operation with an overly -restrictive definition of "family."
Section 12-2.29 further identifies that facilities serving six or fewer persons are a single-family residential use, permitted by -right in the R-1, RSL-1, R-2, and R-3 zoning districts. To be compliant with State law, the City must also explicitly permit these community care facilities in the RA zoning district and the Bungalow DTSP zoning district, where single-family dwellings are permitted. These changes are included as part of Program 4.F.

Lastly, the City ensures that new housing developments comply with California building standards (Title 24 of the California Code of Regulations and the Americans with Disabilities Act (ADA)) and federal requirements for accessibility.

Reasonable Accommodation
Federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e., modifications or exceptions) in their Appendix C: Housing Constraints City of Santa Maria 1 C-25

zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Ordinance to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.

Chapter 12-50 (Reasonable Accommodations) establishes a formal procedure for individuals with disabilities seeking equal access to housing to request a reasonable accommodation and criteria to be used when considering such requests. The City allows a reasonable accommodation request to be made by any person with a disability or their representative when the rules, standards, and practices required for housing acts as a barrier to fair housing opportunities.

Section 12-50.06 (Findings for Reasonable Accommodation) establishes appropriate necessary findings to consider in approving a reasonable accommodation request. These findings include:
a. Whether the housing subject to the request for reasonable accommodation is to be used by an individual protected under fair housing laws;
b. Whether the accommodation requested is necessary to make housing available to one or more persons with disabilities;
c. Whether the requested accommodation would require a fundamental alteration to the City's zoning scheme;
d. Whether the requested accommodation would impose undue financial or administrative burdens on the City.

The procedure is a ministerial process, subject to approval by the Community Development Director. A request for a reasonable accommodation shall not be denied for reasons which violate the provisions of the Fair Housing Amendments Act of 1988.

The City has received three Reasonable Accommodation requests since 2015, with only one of those requests denied. The denied request was for the legalization of an unpermitted, substandard sanitation facility located on the exterior of an existing three car garage building found to have been illegally converted to living space with no interior sanitation facilities and determined to create substandard housing conditions as defined by State law. The City denied the request based on the finding that allowing the sanitation facility with only exterior access will not adequately accommodate the needs a disabled individual, and the granting of the requested accommodation will facilitate having an individual to continue residing in substandard living conditions in the illegally converted garage, which posed a health and safety issue. Therefore, the findings required for a reasonable accommodation request are not considered to be a constraint to providing housing for persons with disabilities. To increase community awareness of Reasonable Accommodation, under Program 4.A, the City will prepare and distribute information to the community about reasonable accommodations to facilitate requests and approvals.

C-26 1 City of Santa Maria Appendix C: Housing Constraints

Density Bonus and Incentives for Affordable Housing
The City's density bonus provisions and incentives are located in Chapter 12-48 (Density Bonus).

Recent changes to State density bonus laws (e.g., allowance for up to 50 percent density bonuses via AB 2345) have only been partially incorporated into the Zoning Ordinance. The most recent amendment was made by Ordinance No. 2022-04, which went into effect in July 2022. However, Section 12-48.02 (Compliance with Government Code Section 65915) affirms, that in the event State requirements are amended by the Legislature, those amendments shall control and apply in Santa Maria pending further amendment to Chapter 12-48.

In addition to standard density bonuses established by State law, Section 12-48.04 (Additional Incentives for Affordable Units) provides examples of additional incentives or concessions the City shall grant through a planned development permit, agreement, or subdivision. These include:
• Reducing or waiving development standards, modifying or waiving zoning requirements (including minimum lot size or setbacks), and modifying architectural design requirements which result in identifiable cost reductions. • Providing other regulatory incentives or concessions proposed by the developer or the City, so as to result in identifiable cost reductions.
• Allowing the developer to pay development impact fees over a period of time not to exceed three (3) years in equal installments. The terms of an approval under this section shall be reflected in a written agreement containing provisions for interest and security approved by the Finance Director and City Attorney. • Approving mixed -use in conjunction with the project. • Other incentives proposed by the developer for consideration by the Planning Commission or City Council.

As established by Government Code Section 65915(d)(2), the number of incentives or concessions allowed varies from one to four depending on the level of affordability, the type of housing unit, and the percentage of total units they represent.

As stated above, Section 12-48.02 (Compliance with Government Code Section 65915) affirms State law shall control in all cases where Chapter 12-48 is inconsistent with State law. Therefore, as changes occur to State law in the future, the City will comply with those during the processing of density bonus requests. Under Program 1.B, the City will ensure that density bonus provisions applied are consistent with current State law.

Other Local Ordinances
The City does not have other ordinances, such as an inclusionary housing ordinance, short-term rental ordinance, or growth control ordinance that directly impact the cost and supply of residential development.

Appendix C: Housing Constraints City of Santa Maria 1 C-27

Effective January 2022, Senate Bill 9 (SB 9), mandates local jurisdictions to ministerially approve up to two residential units and/or a two -lot subdivision in single-family residential zoning districts if specific objective criteria are met. SB 9 projects are exempt from discretionary review if the project is consistent with objective zoning, design standards, and subdivision standards. While the City has not passed any ordinance related to SB 9, Community Development staff have been briefed in these State Law requirements and have been responding to property owner inquiries.

C.2.3 Building and Housing Codes and Enforcement
Santa Maria has adopted by reference the 2019 California Building Standards Code (Code of Regulations, Title 24) as the Building Code of the City of Santa Maria. All codes that constitute the 2019 Building Standards Code are referenced in Title 9 (Building Regulations) of the Municipal Code. The standards may add material and labor costs but are necessary minimums for the safety of those occupying the structures. The City has not added any amendments to the Building Code that would place constraints on accommodation of persons with disabilities and the City does not anticipate any governmental constraints toward construction of affordable housing.

The City's Code Enforcement Division, within the Community Development Department, is responsible for monitoring Code compliance. Enforcement investigations are primarily in response to complaints received, unless a health and safety concern is identified.

Santa Maria provides service request forms and educational materials for code enforcement on the City's website. The City also promotes a Community Mediation Program to resolve disputes in a low-cost and low -risk manner. Information on the program can be found at the City Attorney's office or by calling the Conflict Solutions Center of Santa Barbara County.

C.2.4 Permits and Procedures
Entitlement Timeline
The time required to process a project varies from one entitlement to another and is directly related to the size and complexity of the proposal, as well as the number of actions or approvals needed to complete the process. Table C-7 identifies approvals and/or permits that could be required for residential planning entitlements, their corresponding approval body, and the typical or estimated approval timeline. It should be noted that not every project would have to obtain each permit/approval listed below.

C-28 1 City of Santa Maria Appendix C: Housing Constraints

Table C-7: Typical Approval Timelines
Permit/Approval Type Mir Review Authority W Typical Approval Timeline' Subdivision (Tract and Parcel Maps)
Subdivision Committee
Planning Commission
Downtown Permits (Administrative)
Downtown Permits
Conditional Use Permits
Zoning Administrator
Planning Commission
Planning Commission
Planned Development (PD) Permits
Planning Commission
23 weeks
7 weeks
10 weeks
10 weeks
16 weeks
Notes
All permit/approvals are assumed to be subject to a Mitigated Negative Declaration/Negative Declaration or lower -level environmental review.
' Typical approval timeline after a project is deemed complete; applicant work periods or delays would lengthen these timelines.

Source: City of Santa Maria
While the City requires certain developments to receive some form of discretionary review, the process can sometimes be completed through administrative review. However, a majority of new multi -family housing developments require a Tract Map and Planned Development Permit. A more detailed analysis of the Conditional Use Permit, Downtown Permit, and Planned Development Permit processes is below. The City does not have a separate design review process or permit requirement.

Timing Between Approval and Building Permit Submittal
The time interval between project approval and application for building permit approval varies.

This variation depends on many factors, including the project's complexity, which can affect the time to prepare a full set of construction plans. Recently, the City has been observing an average interval of 30 weeks between project approval and building permit application submission for multi -family and mixed -use projects. For example, a 160 -unit multi -family affordable housing complex at 800 West Battles Road was granted discretionary approval for a Planned Development permit on November 11, 2020 and submitted for building permit approval on March 31, 2021, an interval of 19 weeks. Other projects have seen longer review and resubmittal intervals of over 40 weeks, especially for projects seeking a Downtown Permit. For example, a 32 -unit market -rate apartment complex at 120 West Chapel Street was granted discretionary approval for a Downtown permit on December 16, 2020 and submitted for building permit approval on November 21, 2021, an interval of 49 weeks.

Conditional Use Permits
Zoning Ordinance Chapter 12-35, Article 1 (Conditional Use Permits) establishes the applicability and process for conditional use permits (CUPs). As described in Chapter 12-35, Article 3 (Zoning Administrator), the Zoning Administrator is provided authority to process CUPs of certain classes or types of situations through a discretionary process. As described in Section 12-35.302, this includes residential developments of 12 or fewer units. The Planning Commission is the decision - making body for projects of 13 or more dwelling units that require a CUP. Section 12-35.302 also Appendix C: Housing Constraints City of Santa Maria 1 C-29

authorizes the Zoning Administrator to process use permits for Mixed -Use Projects consisting of Live/Work Units, which the code defines as a residential unit and a commercial or light industrial use (such as an artist studio, photography studio, craftsperson shop, or similar use where the living and working spaces are in a single combined tenant space.

CUP approval is subject to the findings listed in Section 12-35-105 (Findings for Approval). These include typical findings, such as the adequacy of the site and nearby streets to accommodate the proposed use and that the proposed use will not be detrimental to the public health, safety, and welfare. However, these findings also include potentially subjective findings such as:
• That the proposed use will have no adverse effect upon abutting property. • That the establishment, maintenance and/or conducting of the use will not...be inconsistent with the character of the neighborhood or contrary to its orderly development.

Although the City has a strong record of approving CUPs for residential projects, the subjectivity of these findings could lead to a protracted approval process and potentially a denial based on interpretation. Objective findings and standards facilitate review and processing by providing certainty to both the applicant and review authority. The City is proposing Program 3.0 to consider allowing more residential uses to be permitted by -right, and to establish objective design standards developed as part of Program 3.B.

Downtown Permits
The Downtown Permit was established with adoption of the DTSP and applies to all projects within the Downtown area, including both new development and reuse projects. The level of review necessary for each Downtown Permit is determined by the scale and location of the project.

Larger projects in areas of high visibility (e.g., the intersection of Main Street and Broadway) require public hearings before the Planning Commission or City Council, whereas smaller projects may be processed administratively by the Zoning Administrator. This allows for the streamlining of smaller projects while allowing for public input and review for projects that are in the most visible areas of the Downtown area.

The scale of a project is determined by combining the existing and proposed gross square footage of the building(s) on site to be developed. The three scale categories are 0 — 4,999 square feet; 5,000 — 9,999 square feet; and 10,000 square feet or more. The Downtown area is also divided into three different location categories. These categories were determined based on the prominence and visibility of a given location within Downtown. The three location categories are Critical Corners, Major Corridors, and Remainder of Area.3 Table C-8 summarizes Downtown Permit review authorities based on project scale and location. 3 City of Santa Maria, Downtown Specific Plan, p. 34.

C-30 1 City of Santa Maria Appendix C: Housing Constraints

Table C-8: Downtown Permit Review Authority Matrix
0 — 4,999
Planning Commission
Zoning Administrator
Zoning Administrator
Critical Corners Major Corridors
Remainder of Area
5,000 — 9,999
>10,000
City Council
City Council
Planning Commission
Zoning Administrator
City Council
Planning Commission
Source: City of Santa Maria. Downtown Specific Plan. p. 35 All Downtown Permit applications are subject to several typical findings, such as meeting the vision and intent of the DTSP, that the adequacy of the site accommodate the proposed use, and that the proposed project will not be detrimental to the public health, safety, and welfare. However, new development projects must meet "special" findings that include potentially subjective criteria, such as:
• The project will have an inviting, pedestrian -friendly entrance from the street with large store front windows.
• The project will have clear, well -designed signage in building(s).
• The project will have abundant landscaping in the form trees, and in -ground landscape planters with irrigation. • The project will have newly painted building(s) with
keeping with the style of the
of raised planter boxes, street
a cohesive color theme and
architectural style.
• The project will have pedestrian amenities such as: outdoor dining, benches, seating. • The project adheres to the Design Guidelines and Development Standards of the Downtown Plan to the maximum extent possible.
• The project has incorporated two (2) or more architectural features in keeping with the architectural style of the building(s) such as:
o Awnings
o Crown molding
o Cornice details
o Entry way features such as gables and overhang
o Window moldings
o Columns
o New roofing
o Additional building materials such as stone, siding, tile o Any other design element or improvement that creates a more pedestrian friendly street frontage or environment.

Appendix C: Housing Constraints City of Santa Maria 1 C-31

As noted in the CUP subsection above, the subjectivity of these findings could lead to a protracted approval process and potentially a denial based on interpretation. Objective findings and standards facilitate review and processing by providing certainty to both the applicant and review authority. Under Program 3.B, the City will develop objective standards and findings to facilitate housing developments, including those subject to Downtown Permits.

Planned Development Permits
Santa Maria makes use of the Planned Development (PD) process to offer residential builders substantial flexibility in planning their projects on sites in the PD Overlay District. While a PD Permit is required for developments located in the PD Overlay District, this Permit offers applicants the ability to request exceptions, reductions, and other modifications to development standards not otherwise allowed by the Zoning Ordinance. Applicable standards are identified in the base zoning district over which the PD Overlay District is applied. Nearly all PD Permits submitted in recent years, along with their associated requests for modification of development standards, have been approved.

Procedures for filing, processing, and approving PD Permits are described in Chapter 12-35.

Article 2 (Planned Development Permits). PD Permit applications are submitted and processed in the same manner as CUPs, and the Planning Commission must review all PD Permit applications at a public hearing; City Council approval is not required for a PD Permit. When a proposed project requires both a CUP and PD Permit, both permits are combined and are processed simultaneously.

The Planning Commission may approve project development plans with modified setback, height, landscaping and parking provisions subject to the CUP findings of Section 12-35-105 (Findings for Approval), as well as the findings described in Section 12-35.203 (Planned Development Permit Findings). The additional findings required for PD Permits are applicable only to the modifications being requested. These findings include:
• The proposed modification(s) are otherwise consistent with the General Plan, Municipal Code, and applicable Specific Plans;
• The project includes superior design elements that mitigate or compensate for any potential impact of the proposed modification(s) on the surrounding area; • The proposed modification(s) are essential to the design of the project; and • The proposed modification(s) have been minimized to the maximum extent possible consistent with the above findings.

The City will update development standards and procedures, including Program 3.A (Residential Permit Processing Monitoring and Improvements), 3.B (Objective Design Standards), and Program 3.0 (Conditional Use Permits and Planned Development Permits). Under these programs, the City will ensure the cumulative impact of these revisions is to streamline the residential development process.

C-32 1 City of Santa Maria Appendix C: Housing Constraints

SB 35 Processing
The City has not prepared an application form or checklist for SB 35 applications. The City's objective design standards would apply to SB 35 projects. Program 3.D has been included for the City to prepare an SB 35 eligibility checklist and form identifying submittal requirements consistent with State law.

Permit Streamlining Act and CEQA
The City complies with the Permit Streamlining Act and associated timelines outlined in the California Environmental Quality Act (CEQA) when processing housing development applications.

This includes making CEQA determinations per Public Resources Code 21080.1 within mandated timeframes.

Permit and Development Fees
The City requires payment of application fees for entitlement processing and development fees at time of building permit issuance. City fees are based on the City's costs of providing services and are reviewed and adjusted periodically. The City's permit and development fees are available on the City's website consistent with Government Code Section 65940.1(a)(1)(A).

Planning Fees
Table C-9 lists the City's Planning Fees most relevant to housing development.

Table C-9: Planning Fees
Service/Permit Type
Environmental Review
$4,746
Fee Amount
Initial Study/Negative Declaration
Environmental Impact Report
Deposit determined by staff with
charges at the fully allocated hourly
rates for all personnel involved plus
any outside costs
Use Permits
1 No Site Development (Zoning Administrator)
With Site Development (Zoning Administrator)
$3,186
$4,631
No Site Development (Planning Commission)
$5,377
With Site Development (Planning Commission)
$7,904
Downtown Permits
Administrative - Over the Counter
Administrative - Minor (0 - 10,000 sf)
Administrative - Major (10,000+ sf)
$23
$88
$350
Administrative - With Site Development
To Planning Commission
To City Council
$2,283
$8,823
$9,123
Appendix C: Housing Constraints
City of Santa Maria 1 C-33

Table C-9: Planning Fees
Service/Permit Type 1
Planned Development Permits
$8,724
Fee Amount
PD to Planning Commission
CUP/PD to Planning Commission
CUP/PD to City Council
$9,826
$10,722
Tentative Maps
Parcel Map
Parcel Map — City Council (in addition to Parcel Map fee) Tract Map (Planning fee + Public Works fee)
5 — 20 lots
21— 40 lots
41— 80 lots
81— 120 lots
120+ lots
Final Parcel Map
Final Tract Map
$10,233
$1,325
$8,468 base fee + $3,101
$8,468 base fee + $4,708
$8,468 base fee + $6,729
$8,468 base fee + $9,687
$8,468 base fee + $12,468
$228
$823
Pre -Application
Administrative
(100% of fee credited to application fees for the same project if filed within 6 months of pre -application submittal)
Planning Commission - Study Session
(70% of fee credited to application fees for the same project if filed within 6 months of pre -application submittal)
Conceptual Review - City Council
(70% of fee credited to application fees for the same project if filed within 6 months of pre -application submittal)
$2,073
$2,930
$3,910
Other
IVariance
Source: City of Santa Maria. Planning Division Application Fees (2021-2022) $6.824
Development Fees
Development fees are applicable to newly constructed buildings and additions, or whenever a change of use within an existing building creates additional impacts. Fees cover the costs of City services and facilities.

Table C-10 lists the City's Growth Mitigation and Development Impact Fees.

C-34 1 City of Santa Maria Appendix C: Housing Constraints

Table C-10: Growth Mitigation and Development Impact Fees (2021 Fee Schedule) ee Amount
Service/Permit Type
Single Family Multi -Family Unit Senior/Affordable
Detached
State and Regional Fees
Orcutt Union School District
$3.42/sf
Santa Maria Joint Union High -School
District
$4.08/sf
Santa Maria -Bonita School District
$6.65/sf
State Water Reimbursement Fee
Varies by meter size: $8,138.95 (5/8")
— $327,999.69 (4")
City Fees
City Hall Mitigation Fee
$0.12/sf
$0.12/sf
$0.12/sf
Consolidated Corporation Yard
Mitigation Fee
$.09/sf
$.09/sf
$.09/sf
Traffic Mitigation Fee
$3.87/sf
$3.89/sf
$1.08/sf
Water Mitigation Fee
Varies by meter size: $2,612 (3/4") — based
on individual projected water use (4"+)
Wastewater Mitigation Fee
$4,281
$3,837
$1,435
Recreation and Parks Mitigation Fee
$2.14/sf
$3.27/sf
$3.27/sfl
Police Mitigation Fee
$0.38/sf
$0.38/sf
$0.38/sf
Fire Mitigation Fee
$0.57/sf
$0.57/sf
$0.57/sf
Library Mitigation Fee
$0.28/sf
$0.28/sf
$0.28/sf
1 The City may consider a credit of up to 100% of the fee for existing facilities that convert to senior projects if they have on -site recreational facilities that meet certain criteria.

Source: City of Sana Maria. Fee Schedule (2021)
Appendix 0: Housing Constraints City of Santa Maria 1 C-35

Fee Analysis
Table C-11 shows total estimated planning and development fees for single-family and multi- family units.

Table C-11: Planning and Development Fees for Single -Family and Multi -Family Single -Family'
Multi -Family (50 condo
units, market rate)2
Multi -Family (100 units,
senior and /or
affordable)2
Use Permit (With Site Development-
Planning Commission)
$0
$7,904
$7,904
Tract Map (Planning fee + Public Works
fee)
$0
$15,197
$0
Final Tract Map
$0
$823
$0
*Santa Maria Joint Union High -School
District
$10,200
$204,000
$408,000
*Santa Maria -Bonita School District3
$16,625
$332,500
$665,000
*State Water Reimbursement Fee
$8,1394
$87,086.775
$244,168.506
City Hall Mitigation Fee
$300
$6,000
$12,000
Consolidated Corporation Yard
Mitigation Fee
$225
$4,500
$9,000
Traffic Mitigation Fee
$9,675
$194,500
$108,000
Water Mitigation Fee
$2,6124
$19,2415
$53,7856
Wastewater Mitigation Fee
$4,281
$191,850
$143,500
Recreation and Parks Mitigation Fee
$5,350
$163,500
$327,000
Police Mitigation Fee
$950
$19,000
$38,000
Fire Mitigation Fee
$1,425
$28,500
$57,000
Library Mitigation Fee
$700
$14,000
$28,000
Total Fees
$60,482
$1,288,602
$2,382,358
Total Fees per Unit
$60,482
$25,772
$23,824
Total Estimated Development Cost
$929,134
$21,213,313
$37,514,859
Total Estimated Development Cost per
Unit
$929,134
$424,266
$375,149
Estimated Fee Cost as a Portion of 6.5%
Total Development Cost

6.1%

6.4%
'Assumes a 2.500 square foot house with a 2 -car garage. 2 Assumes 1.000 square foot units.
3 Assumes development is within the Santa Maria -Bonita School District and outside the Orcutt Union School District. ° Assumes smallest meter size - %".

Assuumes 2" meter
6 Assumes 3" meter
* Outside agency fee.

Source: City of Santa Maria. LWC
C-36 1 City of Santa Maria
Appendix C: Housing Constraints

Planning and development fees add to the cost of housing and can constrain housing development if the cost of development exceeds the threshold for financial feasibility. The school district fees, traffic fees, and the State Water Reimbursement fee are the most substantial fees on residential development in Santa Maria. However, as reviewed by the Terner Center in a March 2018 report, development fees typically represent reasonable costs.4 Additionally Section 8-15.18 (Traffic mitigation fee) authorizes the City Council to consider granting credits or fee reductions for residential uses which reduce vehicle trips by their design. Growth mitigation fees shall not be charged for any square footage exceeding 3,000 square feet in the single-family detached fees or exceeding 1,500 square feet in the multi -family unit fees. Lastly many fees are reduced for affordable and/or senior residential developments.

C.2.5 On and Off -site Improvements
New development is required to provide public improvements to serve its new residents consistent with City standards. Required improvements are described in Section 12-28.03 (Frontage and improvements) and Section 11-8.04 (Improvements Required). Public improvement obligations include streets, curbs, gutters, sidewalks, alleys, street trees, street lights, street signs and all utilities including but not limited to drainage, sewer and water. Required street right-of-way widths are based on street classification and range from 45 feet (local minor residential street) to 126 feet (primary arterial in commercial and residential zoning districts). While these types of requirements result in additional development costs, these improvements provide the necessary facilities and services for a safe and quality living environment. 4 UC Berkeley, Terner Center for Housing Innovation. It All Adds Up: The Cost of Housing Development Fees in Seven California Cities. March 2018.

Appendix C: Housing Constraints City of Santa Maria 1 C-37

Section C.3 Non -Governmental Constraints
Local governments have limited control over market factors that can influence the development of housing. These market -related constraints include land costs, construction costs, and the availability of financing. An assessment of these non -governmental constraints informs strategies for mitigating the impacts of market factors on housing production.

C.3.1 Housing Supply/Conditions
Market Overview: For -Sale Development
As shown in the Needs Assessment (Appendix A, Figure A-25), from 2012 to 2020, Santa Maria's median home value increased by 34.6 percent while the value in Santa Barbara County increased by 26.5 percent. Appendix A Figure A-26 shows that as of March 2022, Santa Maria's median home sales price was $560,667 and the Santa Barbara County home sales price was $845,000.

From 2012 to 2022, the median home sales price increased by 158 percent in Santa Maria and 142 percent in Santa Barbara County.

Following the recovery from the Great Recession and until 2020, interest rates remained at low levels of 3.5 to 4.5 percent. When interest rates are low, capital investment and housing production generally increase, and more buyers are likely to take out a mortgage than when interest rates are higher. In addition, consumers are able to borrow more money for the same monthly payment. During the COVID-19 pandemic, national 30 -year mortgage rates dropped to even lower levels, declining to as low as 2.65 percent in January 2021. However, interest rates began to increase in early 2022, to 5.3 percent by May 2022, the highest rate since June 2009.5 The increase in home borrowing rates may impact the performance of the home buying market, but the severity of these impacts is uncertain due to the unusual conditions during the pandemic - recovery, including a shortage of housing supply, increased savings and significant changes to how many Americans work and live.

Market Overview: Rental
As shown in the Needs Assessment (Appendix A, Figure A-27), Santa Maria rents have risen alongside rents in Santa Barbara County, but are about 13.5 percent lower than the county median. According to U.S. Census data, the median rent in Santa Maria in 2020 was $1,380 per month, compared to $970 in 2010, an increase of 42.3 percent in the past 10 years. In the same time period, median rent increased by 35.1 percent in Santa Barbara County.

Per the Needs Assessment (Appendix A, Figure A-29), homeowners are generally less cost - burdened than renters, who bear the brunt of an overall rise in housing costs without the benefit Federal Home Loan Mortgage Corporation (Freddie Mac), Primary Mortgage Market Survey C-38 1 City of Santa Maria Appendix C: Housing Constraints

Santa Maria City CouncilDecember 5, 2023

Santa Maria City Council
December 5, 2023