Agenda — Santa Maria City Council, January 20, 2026 (part 2 of 2)

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING THE SUBMISSION OF AN APPLICATION

TO THE CALIFORNIA COASTAL COMMISSION
FOR THE 2025 WHALE TAIL GRANT FUNDING UP TO $28,000

WHEREAS, the California Coastal Commission awards grants for projects that it determines are consistent with Division 20 of the Public Resources Code and with the Commission’s objective of protecting and enhancing California’s coast and ocean for present and future generations; and

WHEREAS, the California Coastal Commission requires the governing body of the grantee to certify, by resolution, its approval of the application for Commission grant funding and to authorize the execution of a grant agreement, on terms and conditions required by the Commission, by a designated representative of the grantee; and

WHEREAS, the City of Santa Maria Recreation and Parks Department proposes the SMORE program to provide approximately 150 youth and family members with coastal educa tion, stewardship activities, and guided field experiences, in partnership with Allan Hancock College’s Rec Ready Mentorship Program, expanding equitable access to California’s coast through inclusive, community-based programming.

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

SECTION 1. Approves the filing of the project proposal for Whale Tail program grant funding from the Commission up to $28,000; and

SECTION 2. Authorize the City Manager, or designee, to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scope(s); and

SECTION 3. Agrees to comply with all applicable federal, state , and local laws, ordinances, rules, regulations, and guidelines; and

SECTION 4. The Chief Deputy City Clerk is hereby authorized to make m inor 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.

Attachment A

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

COUNCIL AGENDA REPORT

TO: City Council

FROM: Dennis Smitherman, Interim Director of Recreation and Parks

DATE: January 20, 2026

SUBJECT: Adoption of Resolutions Approving the Annexation and Assessment of Parcels into City Landscape Maintenance Districts

Description:

The City Council will consider adopting Resolutions approving the annexation and assessment for multiple buildings and businesses into the City’s Landscape Maintenance Districts.

RECOMMENDATIONS:

1. Adopt a Resolution annexing and authorizing the assessment of Landscape Maintenance Fees to the Sears Building Remodel, CCD Orange Street Duplexes, 309 Mill Street Apartments, and 123 East Fesler Street Apartments in the Northeast Landscape Maintenance District (Streets and Highways Code Section 22500, Et Seq.) ;and

2. Adopt a Resolution annexing and authorizing the assessment of Landscape Maintenance Fees to Depot Street Apartments located in the Northwest Landscape Maintenance District (Streets and Highways Code Section 22500, Et Seq.); and

3. Adopt a Resolution annexing and authorizing the assessment of Landscape Maintenance Fees to the Arby’s to KFC Remodel located in the South Miller Street/South College Drive Landscape Maintenance District (Streets and Highways Code Section 22500, Et Seq.); and

4. Adopt a Resolution annexing and authorizing the assessment of Landscape Maintenance Fees to Planes of Fame, the Airport Business Park, and Industrial Parkway Battery Storage located in the Southwest Landscape Maintenance District (Streets and Highways Code Section 22500, Et Seq.)

BACKGROUND:

The City of Santa Maria has conditioned the Sears Building Remodel , DT2023 -0012; CCD Orange Street Duplexes, DT2024-0002; 309 Mill Street Apartments, DT2020-0015; 123 East Fesler Street Apartments, DT2020-0016; Depot Street Apartments, U2023 - 0023; KFC Remodel, A2024 -0015; Industrial Parkway Battery Storage, PD2021 -0012, Plans of Fame, PD2022-0017 and Airport Business Park, PD2023 -0017 for the ongoing maintenance of landscape facilities served by the Northeast, Northwest, Southeast and Southwest Landscape Maintenance Districts under the provision of the “Landscape and Lighting Act of 1972” for the purpose of levying and collecting assessments for perpetual landscape maintenance.
2 DISCUSSION:

At the C ity Council meeting of June 3, 2025, the City Council adopted a Resolution initiating the proceedings to establish and levy the 2025 -26 Landscape Maintenance District Assessments for the ongoing maintenance of landscape facilities served by the Northeast, Northwest, Southeast, and Southwest Landscape Maintenance District.

This item directs staff to add these assessments for Sears Building Remodel , CCD Orange Street Duplexes, 309 Mill Street Apartments, and 123 East Fesler Street Apartments to the Northeast , Depot Street Apartments to the Northwest, KFC Remodel to the Southeast and Industrial Parkway Battery Storage, Planes of Fame and Airport Business Park to the Southwest Landscape Maintenance Districts on the County of Santa Barbara Property Tax Roll.

Fiscal Considerations
The annual costs of landscape maintenance are assessed against the benefited properties within said Districts. These assessments are reflective of the cost associated with the upkeep of public landscaping within these Districts.

Impact to the Community
These annexations and assessments provide for the maintenance of landscaping in perpetuity. The assessments generate a funding base to help finance the majority of the landscape maintenance costs within each of the respective districts named in this report, which in turn allows the City of Santa Maria to provide the highest level of service to residents.

ATTACHMENT(S)
A. Resolution- Annexation of Northeast Landscape Maintenance District Exhibit A: Annexation Petition- Mill Street Apartments
Exhibit B: Annexation Petition- 123 Fesler Street Apartments Exhibit C: Annexation Petition- Sears Building Remodel
Exhibit D: Annexation Petition- CCD Orange Street Duplexes B. Resolution- Annexation of Northwest Landscape Maintenance District Exhibit A: Annexation Petition- Depot Street Apartments C. Resolution- Annexation of South Miller Street/South College Drive Landscape Maintenance District Exhibit A: Annexation Petition- Arby’s to KFC Remodel
D. Resolution- Annexation of Southwest Landscape Maintenance District Exhibit A: Annexation Petition- Industrial Parkway Battery Storage Exhibit B: Annexation Petition- Planes of Fame and Airport Business Park

Attachment A

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

ANNEXING AND AUTHORIZING THE ASSESSMENT OF LANDSCAPE

MAINTENANCE FEES TO EL SUPER, CCD ORANGE STREET
DUPLEXES, 309 MILL STREET APARTMENTS, AND 123 EAST

FESLER STREET APARTMENTS IN THE NORTHEAST LANDSCAPE

MAINTENANCE DISTRICT (STREETS AND HIGHWAYS CODE
SECTION 22500, ET SEQ.)

WHEREAS, on May 2,1989, the City Council of the City of Santa Maria, pursuant to the provisions of the Landscaping and Lighting Act of 1972 by Resolution No. 89- 51, authorized the formation of the Northeast Landscape Maintenance District (“District”); and

WHEREAS, the cost to developers/owners of the new residential or commercial property occurring within said District are determined based on the costs of providing services and building sufficient reserves to meet future costs; and WHEREAS, a Petition Requesting Annexation into the Northeast Landscape Maintenance District was signed by the owner(s) of the following Properties and the associated Assessor’s Parcel Numbers (APN) are provided to identify the Properties as follows:

Sears Building Remodel DT 2023-0012 APN 125-320-038, -015 CCD Orange Street Duplexes DT 2024-0002 APN 125-072-008, -009 309 Mill Street Apartments DT2020-0015 APN 121-193-011
123 East Fesler Street Apartments DT2020-0016 APN 121-152-014

WHEREAS, pursuant to law, the owner(s) waived the right to protest, reports, and to any notice and hearing to which s/he may be entitled; and

WHEREAS, the petition operates as a ballot in favor of the annexation of the Properties in said District; and

WHEREAS, at the City Council meeting of June 3, 2025, the City Council adopted a Resolution initiating the proceedings to levy an assessment to the Properties, within the District; and

WHEREAS, it is the intention of the City Council of the City of Santa Maria to annex the Properties into the District and collect assessments according to the provisions of the Petition and District.

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

SECTION 1. The above recitals are true and correct; and

Page 1 of 3 ends

SECTION 2. The Petition requesting annexation and its associated vicinity map for annexation of the Properties into the District is confirmed and attached hereto as Exhibit A; and

SECTION 3. The Properties are ordered annexed and made part of the District according to the terms and conditions in the Petition and District; and

SECTION 4. It is hereby ordered that the Properties be assessed as part of the District, with the assessment to be annually updated and adjusted according to the Consumer Price Index; and

SECTION 5. Staff is authorized and directed to take all necessary steps to complete these proceedings and collect the assessment; and

SECTION 6. The assessment for the 2025 -2026 Fiscal Year for the following Properties shall be 306.50 for residential and $758.23 for commercial per APN or tenant space:

Sears Building Remodel DT 2023-0012 APN 125-320-038, -015 CCD Orange Street Duplexes DT 2024-0002 APN 125-072-008, -009 309 Mill Street Apartments DT2020-0015 APN 121-193-011
123 Fesler Street Apartments DT2020-0016 APN 121-152-014

SECTION 7. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

///

2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 20th day of January 2026

ATTEST:

Chief Deputy City Clerk

Exhibits:

A: Annexation Petition- Mill Street Apartments
B: Annexation Petition- 123 Fesler Street
Apartments
C: Annexation Petition- Sears Building Remodel
D: Annexation Petition- CCD Orange Street
Duplexes
Mayor

APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director

City Manager

3 Exhibit A

Exhibit B

Exhibit C

Exhibit D

Attachment B

Page 1 of 3 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

ANNEXING AND AUTHORIZING THE ASSESSMENT OF LANDSCAPE

MAINTENANCE FEES TO DEPOT STREET APARTMENTS LOCATED

IN THE NORTHWEST LANDSCAPE MAINTENANCE DISTRICT
(STREETS AND HIGHWAYS CODE SECTION 22500, ET SEQ.)

WHEREAS, on December 20, 1988, the City Council of the City of Santa Maria, pursuant to the provisions of the Landscaping and Lighting Act of 1972 by Resolution No. 88-154, authorized the formation of the Northwest Landscape Maintenance District (“District”); and

WHEREAS, a Petition Requesting Annexation into the Northwest Landscape Maintenance District was signed by the owner (s) of the following Propert ies and the associated Assessor’s Parcel Number (APN) is provided to identify the Propert ies as follows:

Depot Street Apartments U2023-0023 APN 123-161-003

WHEREAS, pursuant to law, the owner(s) waived the right to protest, reports, and to any notice and hearing to which s/he may be entitled; and

WHEREAS, the petition operates as a ballot in favor of the annexation of the Properties in said District; and

WHEREAS, at the City Council meeting of June 3, 2025, the City Council adopted a resolution initiating the proceedings to levy an assessment to the Properties within the District; and

WHEREAS, it is the intention of the City Council of the City of Santa Maria to annex the Properties into the District and collect assessments according to the provisions of the Petition and District.

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

SECTION 1. The above recitals are true and correct; and

Attachment B

Page 2 of 3 ends

SECTION 2. The Petition requesting annexation and their associated vicinity maps for annexation of the Properties into the District are confirmed and attached hereto as Exhibit A; and

SECTION 3. T he Properties are ordered annexed and made part of the District according to the terms and conditions in the Petition and District; and

SECTION 4. It is hereby ordered that the Properties be assessed as part of the District, with the assessment to be annually updated and adjusted according to Consumer Price Index; and

SECTION 5. Staff is authorized and directed to take all necessary steps to complete these proceedings and collect the assessment; and

SECTION 6. The assessment for the 20 25-2026 Fiscal Year for the following Properties shall be 177.88 for residential per APN or tenant space:

Depot Street Apartments U2023-0023 APN 123-161-003

///

Attachment B

Page 3 of 3 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Exhibit A: Annexation Petition- Depot Street
Apartments

Mayor

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

Exhibit A

Attachment C
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, ANNEXING AND AUTHORIZING THE
ASSESSMENT OF LANDSCAPE MAINTENANCE FEES TO ARBY’S TO

KFC REMODEL LOCATED IN THE SOUTH MILLER STREET/SOUTH

COLLEGE STREET MAINTENANCE DISTRICT (STREETS AND
HIGHWAYS CODE SECTION 22500, ET SEQ.)

WHEREAS, on August 4 th, 198 1, the City Council of the City of Santa Maria, pursuant to the provisions of the Landscaping and Lighting Act of 1972 by Resolution No. 81-297, authorized the formation of the S outh Miller Street/South College D rive Landscape Maintenance District (“District”); and

WHEREAS, the developers/owners of the new residential or commercial property occurring within said District are based on the costs of providing services and building sufficient reserves to meet future costs; and

WHEREAS, Petitions Requesting Annexation into the South Miller Street/South College Street Landscape Maintenance District were signed by the following owner(s) of the following Properties and the associated Assessor’s Parcel Number s (APN) are provided to identify the Properties as follows:

KFC Remodel A2024-0015 APN 128-129-009

WHEREAS, pursuant to law, the owner(s) waived the right to protest reports, and to any notice and hearing to which s/he may be entitled; and

WHEREAS, the petition operates as a ballot in favor of the annexation of the Properties in said District; and

WHEREAS, at the City Council meeting of June 3, 2025, the City Council adopted a Resolution initiating the proceedings to levy an assessment to the Properties, within the District; and

WHEREAS, it is the intention of the City Council of the City of Santa Maria to annex the Propert ies into the South Miller Street/South College Street District and collect assessments according to the provisions of the Petition and District.

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

1. The above recitals are true and correct; and

2. The Petition requesting annexation and its associated vicinity map for annexation of the Propert ies into the South Miller Street/South College

Street Landscape Maintenance District is confirmed and attached hereto as Exhibit A; and

3. The Properties are ordered annexed and made part of the South Miller Street/South College Street Landscape Maintenance District, according to the terms and conditions in the Petition and District; and

4. It is hereby ordered that the Propert ies be assessed as part of the South Miller Street/South College Street District, with the assessment to be annually updated and adjusted according to the Consumer Price Index ; and

5. Staff is authorized and directed to take all necessary steps to complete these proceedings and collect the assessment; and

6. The assessment for the 2025-2026 Fiscal Year for the following Properties shall be $569.22 District for commercial per APN or tenant space:

KFC Remodel A2024-0015 APN 128-129-009

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Exhibit A: Petitions & Vicinity Map

Mayor

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

Exhibit A

Attachment D

Page 1 of 3 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

ANNEXING AND AUTHORIZING THE ASSESSMENT OF LANDSCAPE

MAINTENANCE FEES TO PLANES OF FAME, THE AIRPORT BUSINESS

PARK, AND INDUSTRIAL PARKWAY BATTERY STORAGE LOCATED IN

THE SOUTHWEST LANDSCAPE MAINTENANCE DISTRICT (STREETS
AND HIGHWAYS CODE SECTION 22500, ET SEQ.)

WHEREAS, on May 2, 1989, the City Council of the City of Santa Maria, pursuant to the provisions of the Landscaping and Lighting Act of 1972 by Resolution No. 89- 50, authorized the formation of the Southwest Landscape Maintenance District (“District”); and

WHEREAS, a Petition Requesting Annexation into the Southwest Landscape Maintenance District w as signed by the owner (s) of the following Propert y and the associated Assessor’s Parcel Numbers (APN) provided to identify it as follows:

Planes of Fame PD2022-0017 APN 111-231-011
Airport Business Park PD2023-0017 APN 111-213-011
Industrial Pw Battery Storage PD2021-0012 APN 111-291-039

WHEREAS, pursuant to law, the owner(s) waived the right to protest reports, and to any notice and hearing to which s/he may be entitled; and

WHEREAS, the petition operates as a ballot in favor of the annexation of the Property in said District; and

WHEREAS, at the City Council meeting of June 3, 2025, the City Council adopted a Resolution initiating the proceedings to levy an assessment to the Propert y within the District; and

WHEREAS, it is the intention of the City Council of the City of Santa Maria to annex the Property into the District and collect assessments according to the provisions of the Petition and District.

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

SECTION 1. The above recitals are true and correct; and

Attachment D

Page 2 of 3 ends

SECTION 2. The Petition requesting annexation and its associated vicinity map for annexation of the Propert y into the Southwest Landscape Maintenance District is confirmed and attached hereto as Exhibit A; and

SECTION 3. The Property is ordered annexed and made part of the Southwest Landscape Maintenance District, according to the terms and conditions in the Petition and District; and

SECTION 4. It is hereby ordered that the Propert y be assessed as part of the District, with the assessment to be annually updated and adjusted according to the Consumer Price Index; and

SECTION 5. Staff is authorized and directed to take all necessary steps to complete these proceedings and collect the assessment; and

SECTION 6. The assessment for the 20 25-2026 Fiscal Year for the following Property shall be $569.22 for commercial per APN or tenant space:

Planes of Fame PD2022-0017 APN 111-231-011
Airport Business Park PD2023-0017 APN 111-213-011
Industrial PW Battery Storage PD2021-0012 APN 111-291-039

///

Attachment D

Page 3 of 3 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Exhibits:

A: Annexation Petition- Industrial Parkway
Battery Storage
B: Annexation Petition- Planes of Fame/Airport
Business Park

Mayor

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

Exhibit A

Exhibit B

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Shad S. Springer, Director of Utilities

DATE: January 20, 2026

SUBJECT: Adoption of a Resolution Approving an Agreement with S.E.

Chambers Construction, Inc. for Utility Locating and Marking Services

Description:

The City Council will consider adopting a Resolution authorizing an agreement with S.E.

Chambers Construction, Inc. for Utility Locating and Marking Services.

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

RECOMMENDATION:

1. Adopt a Resolution approving an agreement with S.E. Chamb ers Construction, Inc. for Utility Locating and Marking Services; and

2. Authorize the City Manager, or designee, to execute agreement.

BACKGROUND:

The City of Santa Maria (City) owns and operates extensive underground utility infrastructure and is legally required under California Government Code Section 4216 to locate and mark City-owned utilities prior to excavation upon request. Due to fluctuating demand, strict response timeli nes, and specialized equipment needs, the City has historically relied on an outside contractor, coordinated by City staff, to meet these obligations efficiently.

The City’s underground infrastructure includes approximately 240 miles of water mains, 260 miles of sewer mains, 130 miles of storm drain, 15 miles of fiber optic cable, 48 traffic signals, and over 7,000 streetlights. During the previous fiscal year, the City responded to more than 2,900 utility locate requests across these systems. Demand varie s with construction activity but consistently requires timely and accurate response to maintain safety, service reliability, and legal compliance.

DISCUSSION:

On July 30, 2025, the City issued a Request for Proposals (RFP) for Utility Locating and Marking Services via PlanetBids. The RFP was distributed broadly, notifying over 300 vendors. Eleven firms expressed interest, and seven complete proposals were submitted.

A multi -department selection committee representing Utilities, Public Works, and Information Technology (IT) evaluated proposals based on experience, technical 2 approach, understanding of City needs, and cost. S.E. Chambers Construction, Inc. received the highest overall score from reviewers. The firm demonstrated strong relevant experience, a c lear understanding of regulatory and operational requirements, and competitive pricing.

Following selection, staff negotiated contract terms with S.E. Chambers Construction, Inc.

The agreement, reviewed and approved as to form by the City Attorney, includes a three- year base term with two optional one-year extensions.

Approval of this agreement allows the City to continue providing timely, accurate utility marking services necessary for public safety, infrastructure protection, and regulatory compliance.

Alternatives:

The City Council may:

1. Decline to authorize the agreement, reject the proposal, and direct City staff to reissue the RFP. This would require the City to extend the current contract until such time a new RFP could be advertised, scored, award ed, and brought back to Council for approval. This option is not recommended, as the pricing is competitive and S.E. Chambers Construction, Inc. currently provides these services for the City.

2. Decline to authorize the agreement and d irect staff to perform this operation in - house. This option is not recommended, as the City does not currently possess the specialized equipment required across all utility types, and projected costs would likely exceed the proposed contract pricing.

Fiscal Considerations
The proposed contract is not-to-exceed and work will be billed throughout the year based on the response to calls. Funding for this program is budgeted across the three different departments and is billed accordingly based on which utilities are marked.

Impact to the Community
Timely and accurate utility marking reduces the risk of utility strikes, service disruptions, and public safety hazards associated with underground construction.

Impact to the City
Execution of this agreement allows the City to remain co mpliant with Government Code Section 4216, minimize repair costs from utility damage, and enable City staff to focus on other mission-critical responsibilities.

ATTACHMENT(S)
A. Resolution-Utility Locating and Marking Services
B. Agreement-Utility Locating and Marking Services

Attachment A
1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, AUTHORIZING AN AGREEMENT WITH S.E. CHAMBERS CONSTUCTION, INC. FOR UTILITY LOCATING AND MARKING SERVICES

WHEREAS, the City of Santa Maria (City) owns and operates extensive underground utility infrastructure and is required by California Government Code Section 4216 to locate and mark City-owned utilities prior to excavation; and

WHEREAS, the volume, timing requirements, and technical nature of utility locating services necessitate the use of a qualified outside contractor to ensure public safety, infrastructure protection, and regulatory compliance; and

WHEREAS, the City conducted a c ompetitive Request for Proposals process for Utility Locating and Marking Services and, following evaluation by a selection committee, determined S.E. Chambers Construction, Inc. to be the most qualified proposer; and

WHEREAS, City staff negotiated an agreement with S.E. Chambers Construction, Inc., consisting of a three-year base term with two optional one-year extensions; and

WHEREAS, approval of the agreement will enable the City to continue providing timely and accurate utility locating and marking se rvices in support of public safety and efficient City operations.

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

SECTION 1. Authorize and direct the City Manager, or designee, to enter into an agreement with S.E. Chambers Construction, Inc., incorporated herein by reference; and SECTION 2. Authorize and direct the City Manager , or designee, to enter into extensions and modifications consistent with the terms of the agreement, or to cancel the agreement, as determined to be in the best interest of the City of Santa Maria; and SECTION 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.

Attachment A
2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held on the 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:

_______________________________
City Attorney

APPROVED AS TO CONTENT:

_______________________________
Department Director

_______________________________
City Manager

Atty. Rev. 2025 Page 1 of 13

AGREEMENT FOR SERVICES

UTILITY LOCATING AND MARKING SERVICES
T
his Agreement is made on January 20, 2026 by and between S.E. Chambers Construction, Inc., a California S 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:

W
HEREAS, the City has determined that Utility Locating and Marking Services (the “Project”) involves performance of services of irregular and specialized nature; and W
HEREAS, the City does not have sufficient available employees, equipment, or resources to perform the required services for the Project; and
W
HEREAS, on July 30, 2025, the City released a Request for Proposals seeking qualified firms to provide services for the Project; and
W
HEREAS, following completion of the Requests for Proposals process , the City selected the Contractor as the firm best qualified to perform the required services for the Project; and W
HEREAS, on the effective date set forth above, the City Council authorized City staff to enter into this Agreement for the Project.

NO
W, THEREFORE, IT IS AGREED:

1. R
ecitals true. The above recitals are true.

2. Ge
neral.

2. 01. Term and Termination. The initial term of this Agreement is three (3) years, beginning on the effective date set forth above, and ending 11:59 p.m. on January 19, 2029, but may be extended up to two (2) successive one (1) year periods by mutual written 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 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 Contractor in the performance of the contract and timely pay invoices.

2.04. Payment. Payment terms under this Agreement are listed in Exhibit B.

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

2.06. Prevailing wage. Where applicable, Contractor shall follow the prevailing wage requirements listed in Exhibit D and applicable law.

2.07. Exhibits. Exhibits A, B, C, and D are attached and incorporated.

3. C
ontractor’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 ATTACHMENT "B"
Atty. Rev. 2025 Page 2 of 13
performance of these extra-contractual services does not interfere with or present a conflict with 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 the City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City. The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement.

3.04. Indemnification. To the fullest extent permitted by law, the 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 the Contractor or the acts or omissions of an employee, agent or subcontractor of the Contractor. 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.

4. M
iscellaneous

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

To City: To Contractor:

City of Santa Maria SE Chambers Construction, Inc.

Utilities Department Attn: Steven E. Chambers
Attn: Director of Utilities P.O. Box 6017
2065 East Main Street Santa Maria, CA 93456
Santa Maria, CA 93454
I f 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 A greement 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.

Atty. Rev. 2025 Page 3 of 13

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. 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. Further requirements are attached as Exhibit D.

IN WITNESS WHEREOF, this Agreement is executed by the parties on the date first written above.

“Contractor” “City”
S.E. CHAMBERS CONSTRUCTION, INC. CITY OF SANTA MARIA

By: By:

STEVEN E. CHAMBERS SHAD S. SPRINGER, P.E., MPA
President Director of Utilities

ATTEST

By:

DONNA G. SCHWARTZ
Chief Deputy City Clerk

APPROVED AS TO FORM

Risk Manager

City Attorney

Atty. Rev. 2025 Page 4 of 13

EXHIBIT A

SCOPE OF WORK

GENERAL REQUIREMENTS

The Contractor shall provide all labor, equipment, records, research, and field investigations necessary to perform utility locating services for the City. Work shall include determining the location of City-owned facilities using GIS data, as-built record drawings, atlas maps, KMZ files, and other support documents provided by the City. All services shall be performed with the degree of care, skill, and diligence ordinarily exercised by qualified utility -locating professionals experienced in California underground utility detection.

The Contractor shall perform all work in compliance with:
 Industry-accepted methods and practices for underground utility locating.  All applicable laws and regulations, including California Government Code §4216 et seq.  All local ordinances and requirements.
 Locating procedures adopted or approved by the National Utility Locating Contractors Association (NULCA).
 American Public Works Association (APWA) uniform color code standards.  California Manual on Uniform Traffic Control Devices (CA MUTCD), when traffic control is required.

Services shall be performed promptly and, at minimum, in full compliance with response deadlines established by State law, DigAlert, and all Positive Response requirements.

CONTRACTOR RESPONSIBILITIES

The Contractor shall:
 Provide sufficient qualified and trained staff, vehicles, paint, flagging materials, stakes, necessary traffic control equipment, and all other materials and tools required to complete all locate requests in a timely and professional manner.
 Not utilize subcontractors for any portion of this Scope of Work without prior written approval from the City. The Contractor shall remain fully responsible for the actions and work product of any subcontractor.
 Receive all excavation notices directed to the City from any source, including requests generated through DigAlert.
 Respond to all DigAlert (USA/SC) tickets within two working days of issuance or within the specific timeframes indicated on each request, in accordance with Government Code §4216.  Provide all required Positive Responses to DigAlert electronically through the approved system.  Respond to emergency response tickets issued by DigAlert 24 hours per day, 7 days per week, in accordance with statutory requirements.
 Review the City’s underground facility information and determine any conflicts between proposed excavations and City facilities. Where conflicts exist, locate and mark City- owned Atty. Rev. 2025 Page 5 of 13

utilities using paint, flags, or stakes in compliance with APWA standards and at reasonable intervals to ensure clear identification.
 Only locate and mark City-owned utilities and shall not mark private or third-party utilities unless expressly authorized in writing by the City.
 Take date-stamped photographic documentation of all markings, and when feasible, record GPS locations to accompany the work record for each ticket. Photographic documentation shall include overview and close- up photos of markings, the excavation area, and identifiable landmarks for orientation.
 Notify the City of any discrepancies between GIS data, record drawings, or other mapping provided by the City and the utilities located in the field. Such notification may take the form of digital field markups, redlines, or other formats acceptable to the City.  Electronically close each DigAlert notice upon completion of work, using the approved system.  List all work performed on a per -ticket basis, identified by ticket number and date of issuance, and submit such tickets as backup documentation accompanying weekly invoices.  All electronic records and deliverables including but not limited to all ticket documentation, photos, GPS data, maps, markups, positive response logs, must be provided in a digital format acceptable to the City.
 Safely manage, store, and maintain all City -provided maps, records, GIS data, and facility information. Contractor shall use commercially reasonable security measures to protect both digital and physical data and shall notify the City immediately of any suspected unauthorized access or data breach. Such information shall not be disclosed to or shared with any person not approved by the City and shall be used solely for the purpose of performing utility locating services as required by this contract.
 Maintain complete records of all locate requests, supporting documentation, photos, and communications for a minimum of three (3) years from the date of receipt. Such records shall be made available to the City for inspection or audit upon reasonable notice.  Maintain regular communication with assigned City staff regarding ticket status, scheduling, field conditions, conflicts, discrepancies, unlocatable facilities, safety concerns , and any issues that may impact work performance.
 Coordinate with City staff performing construction, maintenance, or asset -verification activities and provide additional locating support as directed.
 Provide separate billing to each City Department responsible for the utilities marked. Billings shall be directed to: (a) Utilities Department: Water, Sewer, Storm Drain, and Fiber (b) Public Works Department: Signal and Streetlighting.
 Be responsible for damages resulting from incorrect or negligent field markings, except to the extent such damages arise from inaccurate, incomplete, or conflicting information provided by the City.
 Assist the City in damage investigations as requested, including providing documentation, photos, site notes, and personnel statements.

Atty. Rev. 2025 Page 6 of 13

EXHIBIT B

PAYMENT

I. PROGRESS AUTHORIZATION

Written authorization to proceed from the City authorizes the Contractor to bill the City as follows for work performed under this Agreement. The unit pricing below will be in place for the first two (2) years of the initial term and may be adjusted starting with the third (3rd) year based on the Southern California Construction Cost Index (CCI) published by Engineering News Record (ENR) calculated as the lesser of the following:

1. CCI change in the previous year from January to December; or

2. Five (5) year average of the previous fiscal years

SCHEDULE OF CHARGES – 2026 THROUGH 2027

ITEM PER UNIT UNIT COST
1 Field Locate Utility $ 37.00
2 Field Screen Site/Ticket $ 33.00
3 Office Screen Site/Ticket $ 20.00
4 Re-Mark (REMK) Site/Ticket $ 25.00
5 Renew (RNEW) No Charge
6 Emergency Call-Out Response Hour $ 75.00

Note: All pricing is inclusive of all labor, equipment, materials, overhead, and administrative costs necessary to complete each task listed. No markup is permitted.

SCHEDULE DESCRIPTIONS

1 Field Locate
Earned per utility per DigAlert ticket transmission when:
 A site visit is conducted during regular business hours (Monday -Friday, 7:00 a.m. -5:00 p.m.) with a minimum of 48 hours’ notice.
 Up to 400 linear feet per utility is located and marked.  Additional units are earned for each 400 feet increment beyond the initial 400 linear feet.

2 Field Screen
Earned per site when:
 A site visit confirms no conflict with City-owned underground facilities.  No physical/electronic locating is performed.
 Conditions may include no- show by excavator, ticket errors, excavation completed, and insufficient notification.

Atty. Rev. 2025 Page 7 of 13

3 Office Screen
Earned per site when:
 No field visit is necessary.
 Includes research, documentation, communication with excavators, and ticket updates.  Includes ticket cancellations, "no mark required," and out-of-area requests.  Does not apply to RNEW requests (see Item 5).

4 Re-mark (REMK)
Earned per site when:
 A new DigAlert ticket requests a re-mark within 28 days of the original ticket.  REMKs must be performed if requested, regardless of elapsed time.  If the original ticket required a Field Locate or Field Screen, the REMKs must also be field- performed.
 If the original ticket was an Office Screen, the REMKs will also be treated as such.

5 Renew (RNEW)
 RNEWs are excavator-initiated notifications of ongoing work.  No fee shall be charged to the City unless field response is explicitly requested.  RNEWs do not require action unless triggered by the excavator. o Excavators are required to renew tickets that must stay open longer than 28 days.

6 Emergency Call-Out Response
 Includes responses outside of regular business hours (after 5:00 p.m., weekends, or holidays).
 Requires prior authorization by the City.

II. INVOICE PROCEDURE

 Payment shall be monthly based on the billable charges.  The Contractor shall present weekly bills for charges from the previous week, separated by responsible City Department as described in Exhibit A.
 The Co ntractor's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.  City may withhold payment for disputed work. Payment of fees shall not constitute an acceptance of work.

III. Rates shall be billed according to schedule of charges. Work authorized by amendment shall be billed on a time and materials basis according to the attached fee schedule, unless another payment method is agreed to in writing by the City prior to initiation of work.

Atty. Rev. 2025 Page 8 of 13

EXHIBIT C

INSURANCE REQUIREMENTS

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 the Contractor , his/her agents, representatives, or employees. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor.

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. 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).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Contractor's profession.

Architects' and engineers' coverage is to be endorsed to include contractual liability.

5. Cyber Liability Insurance. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infri ngement 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.

B. Minimum Limits of Insurance

Contractor shall maintain limits no less than:

1. 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.

2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

Atty. Rev. 2025 Page 9 of 13

3. Workers’ Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self-insured Retentions

Self-insured retentions must be declared to and approved by the City. The City may require the 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.

D. Other Insurance Provisions

The liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL 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).

2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the 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 the Contractor's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract 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.

4. Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the 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 the City has received a waiver of subrogation endorsement from the insurer.

Atty. Rev. 2025 Page 10 of 13

5. If any of the required policies provide claims-made coverage:
a. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non -renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

E. 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.

F. Verification of Coverage

Contractor shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. 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 the Contractor ’s obligation to provide them. The 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.

G. Special Risks or Circumstances

The 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. 2025 Page 11 of 13

EXHIBIT D

PREVAILING WAGE REQUIREMENTS FOR MAINTENANCE WORK, DESIGN AND

PRECONSTRUCTION PHASES OF CONSTRUCTION, AND INSTALLATIONS

The terms of this Exhibit apply to all Public Works projects for over $1,000.

For purposes of this Exhibit, “Public Works” includes any project of a type defined in California Labor Code section 1720 when paid for in whole or in part by public funds. These projects include:
construction, alteration, demolition, installation, or repair work done under contract. For purposes of this definition, "construction" includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this definition, "inst allation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

Pursuant to California Labor Code sections 1720 and 1771, construction, alteration, demolition, installation, repair and maintenance work performed under this Agreement is subject to State prevailing wage laws. State prevailing wage laws require certain provisions be included in all contracts for public works. The Contractor and any subcontractors shall comply with all applicable State prevailing wage laws, whether included in this agreement or inadvertently omitted, including but not limited to the requirements listed below:

1. Compliance with Prevailing Wage Requirements. Pursuant to California Labor Code sections 1720 through 1861, the Contractor and all subcontractors shall ensure that all workers who perform work under this Agreement are paid not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations (DIR). This includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including but not limited to inspection and land surveying work, regardless of whether any further construction wor k is conducted, and work performed during the post - construction phases of construction, including but not limited to all cleanup work at the jobsite.

1.1. Copies of such prevailing rate of per diem wages are on file at the City Public Works Department and are available for inspection to any interested party on request. Copies of the prevailing rate of per diem wages also may be found at http://www.dir.ca.gov/ OPRL/DPreWageDetermination.htm. The Contractor and all subcontractors shall post a copy of the prevailing rate of per diem wages determination at each job site and shall make them available to any interested party upon request.

1.2. The wage rates determined by the DIR refer to expiration dates. If the published wage rate does not refer to a predetermined wage rate to be paid after the expiration date, then the published rate of wage shall be in effect for the life of this Agreement. If the published wage rate refers to a predetermined wage rate to become effective upon expiration of the published wage rate and the predetermined wage rate is on file with the DIR, such predetermined wage rate shall become effective on the date following the expiration date and shall apply to this Agreement in the same manner as if it had been published in said publication. If the predetermined wage rate refers to one or more additional expiration dates with additional predetermined wage rates, which expiration dates occur during the life of this Agreement, each successive predetermined wage rate shall apply to this Agreement on the date following the expiration date of the previous wage rate. If the last of such Atty. Rev. 2025 Page 12 of 13

predetermined wage rates expires during the life of this Agreement, such wage rate shall apply to the balance of the Agreement.

2. Penalties for Violations. The Contractor and all subcontractors shall comply with California Labor Code section 1775 in the event a worker is paid less than the prevailing wage rate for the work or craft in which the worker is employed. This shall be in addition to any other applicable penalties allowed under California Labor Code sections 1720 through 1861.

3. Payroll Records. The Contractor and all subcontractors shall comply with California Labor Code section 1776, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. The Contractor shall require all subcontractors to also comply with section 1776. The Contractor and all subcontractors shall furnish records specified in section 1776 on a monthly basis, both to the City and directly to the Labor Commissioner in the manner required by California Labor Code section 1771.4. The Contractor shall ensure its subcontractors prepare and submit payroll records to the City and the DIR as required by this section. The City may require the Contractor and its subcontractors to prepare and submit records specified in section 1776 to the City and the Labor Commissioner on a weekly basis, at no additional cost to the City.

4. Apprentices. The Contractor and all subcontractors shall comply with California Labor Code sections 1777.5, 1777.6 and 1777.7 concerning the employment and wages of apprentices. The Contractor is responsible for compliance with this section for all apprenticeable occupations pursuant to California Labor Code section 1777.5(n).

5. Working Hours. The Contractor and all subcontractors shall comply with California Labor Code sections 1810 through 1815, including but not limited to: (i) restrict working hours on public works contracts to eight hours a day and forty hours a week, unless all hours worked in excess of 8 hours per day are compensated at not less than 1½ times the basic rate of pay; and (ii) specify penalties to be imposed on CONTRACTORs and subcontractors of $25 per worker per day for each day the worker works more than 8 hours per day and 40 hours per week in violation of California Labor Code sections 1810 through 1815.

6. Required Provisions for Subcontracts. The Contractor shall include, at a minimum, a copy of the following provisions in any contract they enter into with a subcontractor: California Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861.

7. Labor Code Section 1861 Certification. In accordance with California Labor Code section 3700, the Contractor is required to secure the payment of compensation of its employees. By signing the Agreement, to which this is an exhibit, the Contractor certifies that:

“I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”

8. Compliance Monitoring and Enforcement. This project is subject to compliance monitoring and enforcement by the DIR. The City must withhold contract payments from the Contractor as directed by the DIR, pursuant to California Labor Code section 1727.

Atty. Rev. 2025 Page 13 of 13

9. Contractor and Subcontractor Registration Requirements. The Contractor and all subcontractors shall not engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to California Labor Code section 1725.5 Contractor certifies that the Contractor has verified that all Contractor and all subcontractors (if any approved by City) used on this project are registered with the DIR in compliance with California Labor Code sections 1771.1 and 1725.5. The Contractor shall provide proof of registration for themselves and all listed subcontractors to the City at the time of signature of contract and immediately upon any changes or City’s request.

10. Stop Order. Where a Contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of California Labor Code sections 1725.5 or 1771.1, the Labor Commissioner must issue and serve a stop order prohibiting the use of the unregistered Contractor or subcontractor on ALL public works until the unregistered Contractor or subcontractor is registered. Failure to observe a stop order is a misdemeanor.

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Shad S. Springer, Director of Utilities

DATE: January 20, 2026

SUBJECT: Adoption of a Resolution Designating Additional Funds for the Well 12S Rehabilitation Project, Bid No. 2024-15

Description:

The City Council will consider adopting a Resolution designating additional funds in the amount of $98,853 for the Well 12S Rehabilitation Project, Bid No. 2024 -15, to ensure sufficient funds are available to complete the project in accordance with City standards.

RECOMMENDATION:

1. Adopt a Resolution authorizing and designating additional fund s in the amount of $98,853 with in the approved budget for Fiscal Year 2025 -26, to the Well 12S Rehabilitation Project, Bid No. 2024-15.

BACKGROUND:

On February 18, 2025, the City Council awarded the Well 12S Rehabilitation Project, Bid No. 202 4-15 to Kaweah Pump, Inc. in the amount of $ 349,615 with a 20 percent construction contingency ($69,923), for a total amount approved for constructi on of $419,538.

During construction, which included removing and inspecting the pump, motor, piping, and casing for the well, additional work was identified as being necessary to fully rehabilitate the well. Four contract change orders have been authorized by the Director of Public Works to date to address the unforeseen field conditions with costs that have exceeded the original authorized contingency. The additional work and associated costs are shown on the following table and included as Attachment B:

Change
Order # Work Description Amount
1 Additional chemical treatment to target hardwater nodules observed on the well casing after the initial treatment to remove iron and general buildup.
$ 86,579
2 Change
Order # Work Description Amount
2 Additional work to replace severely corroded column pipe and rehabilitate corroded pump components. 60,600
3 Perform pump motor and shaft adjustments instead of
performance by a third party as initially planned. 6,147 4 Additional work to remove debris (e.g., corroded pump strainer wire) encountered in the well shaft. 15,450
Total $ 168,776

DISCUSSION:

The additional work was necessary to meet the purpose and need of rehabilitating Well12S to improve performance and extend its useful life. In addition, as the expense for removing and resetting the piping, pump, and motor were already part of the contract, it was most cost -effective and efficient to have the contractor complete this additional work at the time. This also minimized the downtime for Well 12 S, reducing the risk of to the water supply for the community. The Well 12 Rehabilitation Project, Bid No. 2024-15 is complete, pending removal of the contractor’s equipment from the site, and no further change orders are anticipated.

Alternatives
The City Council may choose not to approve the additional funds. However, this is not recommended as funding is available in the approved budget for fiscal year 2025 -26; therefore, no new appropriation is being requested.

Fiscal Considerations
Staff recommends increasing the project budget authorized from the approved base budget by $98,853 to fund Change Orders 1 -4. The total cost of the change orders is $168,776, of which $69,923 is covered by previously authorized contingency funding. The authorization and designation of additional funds to this project will still be within the budget of $1,419,500 approved by City Council in Fiscal Year 2025/26 for Well Maintenance-Rehab Standardization for Wells.

Approved Budget FY 25/26 Amount
SC7340|CC0280|FD620 (PRJ-00000301)
Well Maintenance – Rehab Standardization for Wells
$ 1,419,500

Authorized Expenditures – Bid No. 2014-15 Amount
Original Contract $ 349,615
Contingency 69,923
Construction Subtotal 419,538
Services (Inspection, Testing, and Staff Time) 41,954
Services Subtotal 41,954
Project Total 461,492

3 Final Expenditures – Bid No. 2014-15 Amount
Original Contract $ 349,615
Change Orders 1-4 168,776
Services (Inspection, Testing, and Staff Time) 41,954
Project Total $ 560,345

Remaining Budget FY 25/26 (after final expenditures) $ 789,232

Impact on the Community
The community benefits from rehabilitated Well 12S infrastructure and pumping system, which provides drinking water to the residents and businesses in Santa Maria.

ATTACHMENTS

A. Resolution
B. Change Orders 1-4
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

AUTHORIZING AND DESIGNATING ADDITIONAL FUNDS IN THE
AMOUNT OF $98,853 WITHIN THE APPROVED BUDGET FOR
FISCAL YEAR 2025-26, TO THE WELL 12S
REHABILITATION PROJECT, BID NO. 2024-15

WHEREAS, on February 18, 2025, the City of Santa Maria awarded Bid No. 2024- 15 to Kaweah Pump Inc. in the amount of $349,615 for the Well 12S Rehabilitation Project; and

WHEREAS, the original construction contract was $349,615 with a 20 percent contingency of $69,923, and an estimated 12 percent for inspection, testing, and staff time, for approved Project funding of $461,492; and

WHEREAS, four change orders totaling $168,776 were necessary, resulting in a final Project cost of $560,345, exceeding the approved contingency by $98,853; and

WHEREAS, staff recommends increasing Project funds from the Utilities Department’s approved budget; and

WHEREAS, sufficient funds are available in Account No. SC7340|CC0280|FD620| PRJ-00000301 to increase the approved budget for the Project.

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

SECTION 1. Authorizes and designates an additional $98,853 for the Well 12S Rehabilitation Project, Bid No. 2024-15, for a revised project budget of $560,345, to be funded from SC7340|CC0280|FD620|PRJ-00000301; and

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

///

///
Attachment A

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

ffl
Contractor:

Contract No.

Job Location:

Contract for:

CITY OF SANTA MARIA
Contract Change Order No. -1-
Kaweah Pump Inc.
2024-15
City of Santa Maria Well 12s
Well 12s Rehabilitation Project
Santa Marla
,,e,_
;'iii�
The following changes are hereby authorized subject to the terms and conditions contained in the contract referred to above-dated February 18, 2025 (covered by Agreement, General Conditions Section 5.01 ).

This contract change order provides payment for an addition to the original contract (covered by Agreement, General Conditions Section 5.02).

This contract change order provides for additions to the original contract amount and shall specifically consist of an additional chemical wash, swab, airlift, video inspection, and incidental work for Well 12s. This additional work was not in the originally bid scope of work but is necessary to complete the project.

The agreed upon price for this work is based on the proposal received August 21, 2025 for a not to-exceed amount of $86,579.00. Twenty-one (21) calendar days will also be added to the contract term.

The contractor will be paid the agreed upon price, upon completion of the work. The price shall include full compensation for all labor, materials, tools and equipment required to complete the work in compliance with the plans and original contract specifications.

Specifications, where pertinent and not in conflict with the above, shall apply to these changes.

ORIGINAL CONTRACT TOTAL:

CONTRACT CHANGE ORDER #1:

REVISED CONTRACT TOTAL:
$ 349,614.00
$ 86,579.00
$ 436,193.00
The revised contract total is within the City Council approved budget for this project.

The net result of this change order is an increase of $436,193.00 to the contract total and 21 1 of 2
Attachment B
calendar days to the contract time.
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Project Manager/Resident Engineer
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Accepted by:

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Approved by:

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COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Rebecca Campbell, Director of Finance

DATE: January 20, 2026

SUBJECT: Adoption of a Resolution Approving the Issuance of a Bond under the Tax and Equity Fiscal Responsibility Act (TEFRA) Regarding Hancock Terrace Apartments

Description:

The City Council will consider adopting a Resolution at a public hearing as required by the Tax and Equity Fiscal Responsibility Act and the Internal Revenue Code of 1986, as amended.

RECOMMENDATION:

1. Conduct a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and

2. Adopt a Resolution approving the issuance of the California Municipal Finance Authority Qualified 501(c)(3) Bonds in an aggregate principal amount not to exceed $105,000,000 for the purpose of financing or refinancing the acquisition, rehabilitation, improvement and equipping of Hancock Terrace Apart ments and certain other matters relating thereto.

BACKGROUND:

Step Up Housing, a California nonprofit public benefit corporation and an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (the “Borrower”), has requested that the California Municipal Finance Authority (the “Authority: or “CMFA”) participate in the issuance of revenue bonds in an aggregate principal amount not to exceed $ 105,000,000 (the “Bonds”), of which will be used to finance or refinance the acquisition, r ehabilitation, improvement and equipping of a 205 unit multifamily rental housing project located at 534 East Boone Street, Santa Maria, California (the “Project”).

DISCUSSION:

In order for all or a portion of the Bonds to qualify as tax-exempt Bonds, the City of Santa Maria must conduct a public hearing providing for the members of the community an opportunity to speak in favor of or against the use of tax -exempt Bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable 2 elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

California Municipal Finance Authority
The CMFA was created on January 1, 2004 , pursuant to a joint exercise of powers agreement to promote economic, cultural , and community development through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City of Santa Maria, have become members of CMFA.

The CMFA was formed to assist lo cal governments, non -profit organizations , and businesses with the issuance of taxable and tax -exempt Bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financing.

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.

All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not Bonds of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

Participation by the City in the CMFA will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activi ty of the City or the City Council with respect to the issuance of the Bonds will be required.

Fiscal Considerations
There is no direct or indirect financial impact to the City as a result of this proposed financing. The CMFA will issue tax -exempt bonds o n behalf of the Project. The tax - exempt bonds are payable solely out of the revenues derived by the Borrower from the applicable project. No financial obligations are place d on the City for project financing costs or debt repayment.

The Board of Director s of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Santa Maria, it is expected that a portion of the issuance fee attributable to the City (estimated to be approximately $ 11,000) will be granted by the CMFA to the General Fund of the City. Such grant may be used for any lawful purpose of the City.

3 Impact on the Community
Approving the issuance of the tax-exempt bonds benefits the community by creating 205 units of affordable housing for the next 30 years.

ATTACHMENT(S)

A. Resolution
B. Affidavit of Publication_TEFRA_Hancock Terrace
Attachment A

Page 1 of 3 ends

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY QUALIFIED 501(C)(3) BONDS IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $105,000,000

FOR THE PURPOSE OF FINANCING OR REFINANCING THE

ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING

OF HANCOCK TERRACE APARTMENTS AND CERTAIN OTHER

MATTERS RELATING THERETO
WHEREAS, Step Up Housing, a California nonprofit public benefit corporation through a special purpose entity (together, the “Borrower”) has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of qualified 501(c)(3) bonds as defined in Section 145 of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such qualified 501(c)(3) bonds in one or more series from time to time, and at no time to exceed $105,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, rehabilitation, improvement and equipping of a multifamily rental housing project located at 534 East Boone Street, Santa Maria, California (the “Project”); and WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of Santa Maria (the “City”) because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, th e Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; and WHEREAS, the public hearing was held on ___________, 202 6, and an opportunity was provided for interested persons to express their views on the issuance of the Bonds and on the nature and location of the Project; NOW, THEREFORE, BE IT RESOLVED , by the City Council of the City of Santa Maria as follows:

Attachment A

Page 2 of 3 ends

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

SECTION 3. The issuance of the B onds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with a ny planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

SECTION 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.
///

///

Attachment A

Page 3 of 3 ends

SECTION 6. This resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Santa Maria this 20th day of January 2026.

___________________________
Mayor

ATTEST

_____________________________
Chief Deputy City Clerk

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

PUBLICATION DATES:

Jan. 9, 2026
Notice ID: XIhuZZ6eBEM9fcu5fx5y
Publisher ID: 551544
Notice Name: TEFRA Notice - Hancock Terrace
PUBLICATION FEE: $187.60
I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct
[$signersig ]
______________________________ [$seal]
Agent

VERIFICATION
State of Florida
County of Broward
Signed or attested before me on this: [$date]
[$notarysig ]
______________________________
Notary Public
[$disclosure]

SANTA MARIA TIMES

AFFIDAVIT OF PUBLICATION
TEFRA Notice - Hancock T errace - Page 1 of 1
NotarizedđremotelyđonlineđusingđcommunicationđtechnologyđviađProof. 01/13/2026
Attachment B

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Rebecca Campbell, Director of Finance

DATE: January 20, 2026

SUBJECT: Fiscal Year 2025 -26 Budget Rebalancing Analysis and Adoption of a Resolution Approving Budget Amendments

Description:

The City Council will consider receiving the Fiscal Year 2025-26 Budget Rebalancing Analysis and adoption of a Resolution approving proposed budget amendments.

RECOMMENDATION:

1. Receive and file the Fiscal Year 2025-26 Budget Rebalancing Analysis; and

2. Adopt a Resolution approving First Quarter Budget Amendments to the F iscal Year 2025-26 Budget for personnel, operational , and capital changes, and delegating the City Manager to implement the same.

BACKGROUND:

On June 18, 2024, the City Council adopted two one-year budgets covering the period from July 1, 2024, to June 30, 2026. The Fiscal Year (FY) 2024 -25 budget was adopted as a balanced budget , closing a very significant $21.3 million structural deficit for the General Fund (including Measure U) with a short-term strategy of drawing on reserves.

During the City Council’s deliberations on June 18, 2024, staff was directed to return with long-term budget strategy recommendations to close the ongoing budget deficit and avoid relying on the use of one-time reserves.

FUND ANALYSIS – GENERAL FUND & MEASURE U

(in thousands)
FY 2024-25
Adopted
FY 2025-26
Adopted
Beginning Fund Balances $ 12,984 $ -
Cancelled Reserves
Unfunded Pensions - -
Local Econ. Aug. Fund (LEAF) 8,336 -
Revenues 118,529 120,307
Total Financing Sources $ 139,849 $ 120,307
Expenditures (139,849) (140,545)
Ending Fund Balances $ - $ (20,238)

2 Throughout FY 2024-25 a significant effort went into reviewing and engaging in budget rebalancing initiatives for all departments , and the City Manager implemented a hiring chill that was put into place in FY 2024-25. The history of staff’s engagement in a budget rebalancing initiative is enclosed in Attachment B.

DISCUSSION:

The Mid-Cycle Budget Review of the FY 2024-2026 Biennial Budget, encompassing FY 2024-25 and FY 2025 -26, began in earnest by engaging City staff in January through March 2025 in a thorough review of year -end estimates for expenditures and revenues, development of revenue estimates for FY 20 25-26, and assessment of their operational needs. The financial planning cycle conclude d with staff laying out a plan to evaluate vacant position s, especially persistent vacancies and chilled positions; reviewing all revenues and expenses for each departme nt; continue reviewing potential revenue - generation initiatives; develop short - and long-term rebalancing initiatives to resolve the structural deficit ; and, the City Council’s adoption of proposed amendments to the previously adopted FY 2025 -26 Budget. Th ose amendments d id not include ongoing long-term reductions previously identified by departments in the budget rebalancing initiative. Rather, the budget maintained services and reflects the City Council’s goals and priorities, which are as follows:

Goals:
 Long-term financial sustainability
 Community quality of life
 Planning and infrastructure
 Organizational well-being

Priorities:
 New approach to economic
development
 Provide youth opportunities
 Provide public safety resources
 Establish a staffing plan

Following the Mid -Cycle Budget Review and the soft -close of FY 2024 -25, an updated structural deficit of $25.1 million in Ge neral Fund and Measure U was identified. To meaningfully address th is deficit, at this time, Departments were once again asked to reevaluate their operations and submit proposals to reduce expenses and/or increase revenues of their Net General Fund/Measure U appropriations. A summary of the status of department budget amendment submissions is shown in the following table:

DEPARTMENTAL BUDGET AMENDMENTS
Dept
Net General
Fund/Measure U
Submissions Amended Percent
Change One Time Ongoing Total Net GF/MU
CAO $ 1,975,752 $ - $ (405,346) $ (405,346) $ 1,570,406 -20.5% CMO 10,913,452 - (2,827,920) (2,827,920) 8,085,532 -25.9% CD 3,072,405 - (1,640,986) (1,640,986) 1,431,419 -53.4% FIN 3,592,917 - (711,773) (711,773) 2,881,144 -19.8% FD 25,412,574 (4,163,118) (1,450,582) (5,613,700) 19,798,874 -22.1% LIB 3,379,558 (25,600) (631,549) (657,149) 2,722,409 -19.4% PD 58,834,755 - (3,884,087) (3,884,087) 54,950,668 -6.6% PW 4,611,338 (896,649) (896,649) 3,714,689 -19.4% RP 15,084,085 (3,336,223) (3,336,223) 11,747,862 -22.1% TOTAL $ 126,876,836 $ (4,188,718) $ (15,785,115) $ (19,973,833) $ 106,903,003 -15.7% 3 Every submission was carefully reviewed by the Department of Finance and the City Manager’s Office with the submitting department . Upon review, it has been determined that $12.5 million of the departments’ proposed amendments can be implemented now (refer to the FY 2025-26 line in the table below) to address the $25.1 million deficit for FY 2025-26. The table below illustrate s that out of the $12.5 million proposed for FY 2025- 26, only $8.7 million of long -term reductions contribute towards the structural deficit ongoing, of which $ 7.6 is made up of vacant chilled positions (see Attachment C for details).

Departments proposed an additional $ 7.5 million of amendments that will be further reviewed and considered for implementation in FY 2026-27 (refer to the FY 2026-27 and Follow-up lines in the table below), of which $5.7 million addresses the ongoing structural deficit and $1.4 million requires additional follow -up. Staff plans to refine and present those amendments during the City Council’s deliberations of the FY 2026 -28 Budget in the upcoming months.

SUMMARY
Targeted
Timing FTE LS
Revenue Increase
Revenue
Total
Expenditure Reduction
Expenditure
Total Total Impact
One-
Time On-going One-Time Ongoing
FY 2025-26 (24.00) (4.80) $ - $1,000,000 $1,000,000 $3,795,098 $7,699,300 $11,494,398 $12,494,398 FY 2026-27 (17.20) (0.48) - 841,147 841,147 393,620 4,847,521 5,241,141 6,082,288 Follow-up (9.00) (1.92) - - - - 1,397,147 1,397,147 1,397,147 (50.20) (7.20) $ - $1,841,147 $1,841,147 $4,188,718 $13,943,968 $18,132,686 $ 19,973,833

The following table breaks down the $12.5 million in FY 2025-26 proposed amendments submitted by department. Additional detail is shown in Attachment C.

PROPOSED DEPARTMENTAL BUDGET AMENDMENTS
FY 2025-26 Submissions Structural
Dept One-Time Ongoing Total Deficit
Structural Deficit $ 25,134,880 $ 25,134,880
City Attorney’s Office $ - $ (147,468) $ (147,468) $ (147,468) City Manager’s Office - (1,275,657) (1,275,657) (1,275,657) Community Development - (1,192,330) (1,192,330) (1,192,330) Finance - - - -
Fire (3,795,098) (1,450,582) (5,245,680) (1,450,582) Library - (494,480) (494,480) (494,480)
Police - (2,486,940) (2,486,940) (2,486,940)
Public Works - (380,662) (380,662) (380,662)
Recreation & Parks - (1,271,181) (1,271,181) (1,271,181) Total Submission $ (3,795,098) $ (8,699,300) $ (12,494,398) $ (8,699,300) Deficit Remaining $ 12,640,482 $ 16,435,580

Ongoing budget amendments proposed to be implemented now (FY 2025-26) will reduce the structural deficit by $8.7 million, as follows:
4  Decrease regular and part-time salaries and benefits by $3.0 million. This includes the reduction of 24.00 FTE positions, comprised of 20 vacant full-time (1.0 FTE) non-safety positions, totaling $2.7 million and 5 vacant part-time (0.8 FTE) non- safety positions, totaling $286,000;
 Decrease limited-service salaries and benefits by $657,000. This equates to the reduction of approximately 39,000 limited-service hours;  Decrease salaries and benefits by $3.9 million. This ensures 8 vacant full-time (1.0 FTE) positions in the Fire Department and 10 vacant full -time (1.0 FTE) positions in the Police Department will continue to be held vacant, totaling $1.451 million and $2.487 million, respectively. It is important to note the FTE count will not be reduced;
 Decrease operating budget reductions total $128,000;
 Increase revenue for building permits by $1.0 million , which is anticipated to be sustainable; and
 It is important to note that it is anticipated that the elimination of these positions will not result in any layoffs.

One-time budget reductions proposed to be implemented now (FY 2025-26) include the Fire Department’s proposal to cancel three projects, totaling $3.795 million funded by Measure U in FY 2024-25, as follows:
 Fire Station 1 Expansion: $3.629 million;
 Parking Lot Maintenance: $159,000; and
 Training Center: $7,000.

The budget for these projects will not be carried over from FY 2024-25-to-FY 2025-26, thereby resulting in additional fund balance available to balance Measure U in FY 2025 -

26. The details of the FY 2025-26 revenue increases and expenditure reductions, including a list of positions submitted for deletion, are enclosed as Attachment C.

FY 2024-26 Capital, Maintenance and Equipment Projects:

The purpose of the Capital, Maintenance, and Equipment Plan is to systematically plan, schedule, budget, and finance capital projects to ensure cost effectiveness and efficiency of construction. The General Fund’s CMEP is budgeted in the Capital Projects – General Fund. Capita l, Maintenance and Equipment Projects (CMEPs) range from road maintenance or construction to the renovation of municipal buildings, recreation centers and ball fields.

The City Manager’s Office, in consultation with the Public Works and Finance departments, reviewed 29 General Fund CMEPs, of which 26 were approved to be budgeted for a total of $9.3 million. The following tables shows that in order to deliver $9.3

5 million of projects the Capital Projects – General Fund required a transfer in from the Local Economic Augmentation Fun d (LEAF) of $3.4 million in addition to the estimated beginning fund balance of $3.0 million and recurring transfers in of $2.9 million:

FUND ANALYSIS – CAPITAL PROJECTS - GENERAL
FUND

(in thousands)
FY 2025-26
Adopted
Beginning Fund Balances $ 2,982
Cancelled Reserves
Local Econ. Aug. Fund (LEAF) 3,443
Revenues 2,875
Total Financing Sources $ 9,300
Expenditures (9,300)
Ending Fund Balances $ -

Staff from the City Manager’s Office, Finance Department, Public Works, and Recreation & Parks departments evaluated and identified projects approved for funding in FY 2025- 26 that can be delayed, cancelled, or funded with another source. The projects and associated budget proposed to be amended are shown in the table below:

CANCELLED / DELAYED FY 2025-26 CAPITAL PROJECTS
FY 2025-26
Leisure & Cultural Services Adopted Amendment Amended
Pocket Parks $ 1,000,000 $ (1,000,000) $ -
Preisker Park Pond Liner
Rehabilitation
600,000 (600,000) -
ADA Access Installation at Simas Field 600,000 (600,000) - Fletcher Park Irrigation Upgrades 100,000 (100,000) - Pool House Rehabilitation 351,200 (351,200) -
Replace Aging Shades & Sun Screens at
City Parks
30,000 (30,000) -
RV Hookup for Park Hosts 350,000 (250,000) 100,000
Sign/Façade Restoration Program 150,000 (150,000) -
Elks Field Lighting 1,500,000 (1,300,000) 200,000
Total $ 4,681,200 $ (4,381,200) $ 300,000

The balance remaining for the RV Hookup for Parks Hosts project will be used to evaluate ways to augment staff and deter vandalism at Pioneer Park and that for the Elks Field Lighting project will be used to evaluate replacement of poles and underground co nduit at Elks and Hagerman fields.
6 All projects that are fully cancelled in FY 2025-26 will be re-assessed during the FY 2026- 28 Full-Cycle Budget Process, with staff prepared to specifically evaluate the following:
 Fund balances in the Growth Mitigation Fund to fund the Pocket Parks project;  Re-assess the Preisker Park Pond Liner Rehabilitation to be able to fund design ; and
 Americans with Disabilities Act (ADA) Access Installation at Simas Field.

Next Steps
Today’s proposal is a result of thorough plannin g and cooperation from all departments.

As discussed, departments proposed $12.5 million in amendments to be implemented in FY 2025-26 and $6.1 million in amendments to be considered for implementation in FY 2026-27. Of the proposed amendments for FY 2025 -26 and FY 2026 -27, only $14.4 million addresses the ongoing structural deficit. Therefore, there remains $10.7 million of amendments that have yet to be identified to address the structural deficit. Additional planning and coordination to addre ss this budget gap will occur during the FY 2026 -28 Full-Cycle Budget Process.

FY 2026-28 Full-Cycle Budget Process:

Looking ahead to the FY 2026 -28 Full-Cycle Budget Process, t here are several large items that will affect the size of the structural defic it in FY 2026-27. Personnel costs are the first largest spending category and include salaries, benefits, workers’ compensation insurance, general liability insurance, health insurance, and retirement costs, including the California Public Employees Retire ment System Unfunded Accrued Liability (CalPERS UAL).
 Compensation Considerations:

Factored into compensation will be the terms related to the Memoranda of Understanding (MOUs) for members of the Santa Maria Police Officers’ Association (SMPOA) and Santa Maria City Fire Fighter’s Union Local #2020 (Local 2020). The fiscal impact for FY 2026 -27 of the two -and-a-half-year agreements with SMPOA and Local 2020 are estimated at $ 1.2 million and $818,000 respectively.
 CalPERS UAL:

The minimum required contribution toward the CalPERS UAL factored into the FY 2025-26 budget totals $17.4 million. The latest actuarial increases the minimum required contribution to $18.4 million, which is an increase of $1.0 million.  Health Insurance: 2026 health insurance rates increased by ten percent, which is approximately $1.0 million.
 Workers’ Compensation Insurance Premium:

The City allocates the costs of its self -insured workers’ compensation program, commonly referred to as Workers’ Compensation . The total cost to be allocated for program year 2026-27 is estimated at $11.5 million. This is an increase of $2.0 million, of which $1.4 million impacts the General Fund while allocations to other funds also increase $0.6 million.
7  General Liability Insurance Premium:

The City allocates the costs of its self-insured liability program, commonly referred to as General Liability. The total cost to be allocated for program year 2026 -27 is estimated at $15.0 million. This is an increase of $2.9 million, of which $3.4 million impacts the General Fund while allocations to other funds decrease $0.5 million.  Technology: Licensing and support costs for the City’s new enterprise resource planning system are anticipated to increase approximately $1.0 million to the General Fund.

Staff will continue to work together through the upcoming budget process to address the General Fund’s structural deficit.

Fiscal Considerations
Adopted FY 2025-26 General Fund appropriations (including Measure U) are $147.6 million, an increase of 5.0 percent from those previously adopted. General Fund and Measure U revenues are forecast to fall short of operational and capital expenses in each fund by $20.3 million and $6.1 million, respectively, for a combined total of $26.4 million. The draw of the projected $1.3 million of fund balance in the Measure U Fund left a gap of $25.1 million to be closed. In addition, the General Fund Capital Projects Fund was projected to have a shortfall of $3.5 million. Ultimately, the City Council adopted balancing measures for FY 2025-26, as follows:

1. Cancel additional General Fund reserves for unfunded liability pension payments in the amount of $5.9 million, thereby leaving a balance of $7.3 million in reserves for unfunded liability pension payments, and

2. Cancel the balance of LEAF reserves in the amount of $22.7 million with $14.4 million used to balance the General Fund, $4.8 million used to balance the Measure U Fund, and $3.5 million used to balance the Capital Projects – General Fund, thereby depleting LEAF reserves.

The following table outlines the General Fund and Measure U budgets adopted and amended by City Council.

FUND ANALYSIS – GENERAL FUND & MEASURE U

(in thousands)
FY 2024-25
Estimates
FY 2024-25
Actual
FY 2025-26
Adopted
FY 2025-26
Current
Beginning Fund Balances $ 22,236 $ 22,236 $ 1,319 $ 7,196 Cancelled Reserves
Unfunded Pensions - - 5,922 5,947
Local Econ. Aug. Fund (LEAF) 3,607 - 19,213 19,213
Total Cancelled Reserves $ 3,607 $ - $ 25,135 $ 25,160
Revenues 117,369 124,366 121,102 121,102
Total Financing Sources $ 143,212 $ 146,602 $ 147,556 $ 153,458 Expenditures (141,893) (139,406) (147,556) (147,581) Ending Fund Balances $ 1,319 $ 7,196 $ - $ 5,877

8 Staff’s proposed amendments will reduce the FY 2025 -26 General Fund (including Measure U) structural deficit by $12.5 million, resulting in revenues increasing to $122.1 million and appropriations decreasing to $136.1 million. This action will require the use of less one-time reserves to balance the budget and will bring ongoing appropriations more in line with ongoing revenues. Proposed budget amendments are outlined by department in Attachment C.

Impact on the Community
The proposed amendments to the FY 2025-26 Budget were thoroughly reviewed with each department and carefully selected to minimize impacts to the community. As reviewed with departments, the proposed budget will not have a significant impact on the current level of service to the community, including public safety. However, as staff moves forward to resolve the structural deficit, some programs may require re-prioritization, thereby resulting in reduced service levels.

ATTACHMENT(S)

A. Resolution
B. Background on Budget Rebalancing Initiative
C. FY2025-26 Budget Balancing Details
Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

APPROVING FIRST QUARTER BUDGET AMENDMENTS TO
THE FISCAL YEAR 2025-26 BUDGET FOR PERSONNEL,

OPERATIONAL, AND CAPITAL CHANGES, AND DELEGATING

THE CITY MANAGER TO IMPLEMENT THE SAME

WHEREAS, during the City Council’s deliberations on the Fiscal Year 2024 -26 Budget, staff was directed to return with long -term budget strategy recommendations to close the ongoing budget deficit and avoid relying on the use of one-time reserves; and

WHEREAS, staff engaged in a budget balancing analysis to determine service level impacts if the potential reductions were taken across -the-board from all City operatio ns and summarized their findings in reports presented to the City Council on September 17, 2024 and October 1, 2024; and

WHEREAS, staff provided the City Council with an update as part of the FY 2024 -25 Second Quarter Financial Report ; however, no action was taken to effectuate budget amendments; and

WHEREAS, the financial planning cycle for the Mid-Cycle Budget Review of the FY 2024- 2026 Biennial Budget did not include ongoing long -term reductions previously identified by departments in the budget rebalancing initiative pending further reevaluation of d epartment operations and submission of proposals that reduce expenses and/or increase revenues with minimal impacts to the community; and

WHEREAS, after deliberation, staff recommends that the City Council adopt the budget amendment (Attachments B and C, of the Report and incorporated herein by reference), totaling $16,875,598, comprised of $12,494,398 in amendments to the General Fund (including Measure U) to address the $25.1 million structural deficit and $4,381,200 to address the $3.4 million deficit in the Capital Projects – General Fund; and

WHEREAS, the City Council has received the Fiscal Year 2025-26 Budget Rebalancing Analysis and considered short- and long-term budget amendments are appropriate at this time to address a significant portion of the structural deficit for the General Fund (including Measure U); and

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

SECTION 1. The City Council finds and determines that the budget amendments described in Attachments B and C, and incorporated herein by reference, totaling $16,875,598, comprised of $12,494,398 in amendments to the General Fund (including Measure U) to address the $25.1 million structural deficit and $4,381,200 to address the $3.4 million deficit in the Capital Projects - General Fund, are necessary; and

SECTION 2 . The Cit y Council hereby adopts the budget amendments described in Attachments B and C, incorporated herein by reference; and

SECTION 3 . The City Manager is hereby authorized to take all necessary actions to implement the provisions of the said budget amendments as adopted on this date, including the policy actions referenced in the Council Agenda Report, future adjustments; and

SECTION 4. All other provisions of Resolution No. 2025-83 shall be in effect; and

SECTION 5. The Chief Deputy City Clerk is hereby auth orized to make m inor 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 20th day of January 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

Attachment B

BACKGROUND:

On June 18, 2024, the City Council adopted two one -year budgets covering the period from July 1, 2024 to June 30, 2026. The Fiscal Year (FY) 2024 -25 budget was adopted as a balanced budget closing a very significant $21.3 million structural deficit for the General Fund (including Measure U) with a short -term strategy of drawing on undesignated General Fund and Measure U reserves in the amounts of $8.6 million and $4.4 million, respectively, in addition to cancelled reserves from the Local Economic Augmentation Fund (LEAF) in the amount of $8.3 million. The FY 2025 -26 budget was adopted as an unbalanced budget due to the anticipated depletion of the General Fund and Measure U unassigned reserves.

During the City Council’s deliberations on June 18, 2024, staf f was directed to return in the September 2024 timeframe with long-term budget strategy recommendations to close the ongoing budget deficit and avoid relying only on the use of one-time reserves.

Budget Balancing Analysis:

While the deficit for FY 2024 -25 amounted to $21.3 million, the ongoing budget gap, excluding expenditures classified as one-time, was determined to be $16.7 million, or 14 percent, of operational General Fund appropriations. In July and August 2024, City departments engaged in a budget balancing analysis to determine service level impacts if the potential reductions were taken across-the-board from all City operations. Revenue enhancement options were also explored. The summary of findings and further recommendations were summarized in t he reports presented to the City Council on September 17, 2024 and October 1, 2024.

Departmental analysis of potential reductions in operations were categorized into the following tiers:
 Tier 1: Reductions having only a moderate impact to operations,  Tier 2: Reductions having significant impacts to services offered or lead to departmental inefficiencies, and
 Tier 3: Reductions resulting in significant service level impacts, including public safety as well as layoffs.

The identified Tier 1 and Tier 2 reduc tions amounted to $4.3 million on an annual basis.

The identified Tier 3 reductions amounted to $10.5 million on an annual basis.

On October 1, 2024, staff provided the City Council with an update on Citywide efforts to begin closing the budget gap in ali gnment with the City Council’s goal of attaining long - term financial sustainability. The report included a summary of the Tier 1, Tier 2, and Tier 3 reductions. Staff recommended further analyzing actions to be taken to effectuate Tier 1 and Tier 2 reducti ons and return to the City Council with specific budget reduction amendments with the FY 2024-25 Second Quarter Financial Report.

Following that meeting, the City Manager placed into effect a “hiring chill” policy requiring justification and analysis before any vacancy can be filled by a General Fund department, Attachment B

except for public safety departments. Through this process, the City continued to engage in analysis to seek efficiencies in operations and only fill positions identified as critical to perform ess ential functions. Staff continued to further analyze actions to be taken to effectuate Tier 1 and Tier 2 reductions.

On February 18, 2025, staff provided the City Council with an update as part of the FY 2024-25 Second Quarter Financial Report. Departments estimated savings of $3.7 million would be realized by holding positions vacant.

Attachment C – FY2025-26 Q1 Budget Balancing Details
Table 1: FY2025-26 Q1 Expenditure Reductions and Revenue Increases Dept Type Frequency FTE
LS
Hours Vacant Cost Description
CAO Expenditure Ongoing (1.00) Yes $ 147,468 Delete 1 vacant position -

1.00 FTE
CMO Expenditure Ongoing (5.00) Yes 1,180,657 Delete 5 vacant positions -

5.00 FTEs
CMO Expenditure Ongoing 95,000 Reduction in operational costs
CD Expenditure Ongoing (1,997) Yes 58,246 Unfund 2 Limited-Service positions
CD Expenditure Ongoing (1.00) Yes 134,084 Delete 1 vacant position -

1.00 FTE
CD Revenue Ongoing 1,000,000 Increase in revenue
projections for building
permits
FD Expenditure Ongoing Yes 1,450,582 Continue to hold positions vacant but reduce budget
by the equivalent of 8.00
FTEs - (2) CAPTAIN, (4)
ENGINEER, (2) FIREFIGHTER
FD Expenditure One Time 3,795,098 One Time reduction
resulting from the non-
carryover of current
capital projects, amount
will lapse to Fund Balance
LIB Expenditure Ongoing (3.80) Yes 341,955 Delete 4 vacant positions -

3.80 FTEs
LIB Expenditure Ongoing (6,988) Yes 132,825 Unfund 7 Limited-Service positions
LIB Expenditure Ongoing 19,700 Reduction in operational costs
PD Expenditure Ongoing Yes 2,486,940 Continue to hold positions vacant but reduce budget
by the equivalent of 10.00
FTEs - CORPORAL
PW Expenditure Ongoing (4.80) Yes 380,662 Delete 5 vacant positions -

4.80 FTEs
RP Expenditure Ongoing (6.60) Yes 671,204 Delete 7 vacant positions -

6.60 FTEs
RP Expenditure Ongoing (1.80) Yes 134,076 Transfer 2 vacant positions to LSMD - 1.80 FTEs
RP Expenditure Ongoing (30,000) 465,901 Unfund 7 Limited-Service positions
One Time Subtotal $3,795,098
Ongoing Subtotal $8,699,300
TOTAL (24.00) (39,894) $12,494,398

ATTACHMENT C
Attachment C – FY2025-26 Q1 Budget Balancing Details

Table 2: FY2025-26 Q1 Labor Reduction - Position List
Dept FTE LS Hours Vacant
Vacancy
Date Cost Description
CAO (1.00) Yes 03/23/24 $ 147,468 ADMINISTRATIVE LEADER CMO (1.00) Yes 05/16/25 293,074 BUSINESS LEADER - CMO Admin CMO (1.00) Yes 04/19/24 169,536 PROGRAM LEADER - Cyber Security CMO (1.00) Yes 12/26/25 237,288 PROGRAM LEADER - PIO Communications
CMO (1.00) Yes 09/30/25 284,923 CORPORATE/EXECUTIVE LEADER(NON_SAFETY)
CMO (1.00) Yes 07/11/25 195,836 BUSINESS LEADER - HR CD (1,997) Yes N/A 58,246 TEMPORARY PLANNER
CD (1.00) Yes 04/25/20 134,084 CHIEF BUILDING INSPECTOR II FD Yes 02/11/20 -
10/18/25
1,450,582 Continue to hold positions vacant but
reduce budget by the equivalent of

8.00 FTEs - (2) CAPTAIN, (4) ENGINEER,
(2) FIREFIGHTER
LIB (1.00) Yes 06/14/24 103,604 LIBRARIAN I
LIB (1.00) Yes 03/15/25 71,271 LIB TECHNICIAN
LIB (0.80) Yes 11/12/24 63,476 SECURITY GUARD
LIB (1.00) Yes 07/19/24 103,604 LIBRARIAN I
LIB (7,987) Yes N/A 132,825 ASSISTANT LIB TECHNICIAN PD Yes 09/20/02 -
09/27/18
2,486,940 Continue to hold positions vacant but
reduce budget by the equivalent of

10.00 FTEs – CORPORAL
PW (1.00) Yes 11/19/11 46,296 ELECTRICIAN I (GF portion) PW (1.00) Yes 02/26/22 91,522 MAINTENANCE WORKER I PW (1.00) Yes 03/23/24 96,302 MAINTENANCE WORKER II PW (0.80) Yes 12/22/21 50,635 LABORER III
PW (1.00) Yes 07/07/18 95,907 SECRETARY
RP (30,000) Yes N/A 465,901
RP (1.00) Yes 07/26/25 81,583 MAINTENANCE WORKER I (TO LSMD) RP (1.00) Yes 07/15/25 90,106 PARK SERVICES OFFICER II RP (1.00) Yes 05/10/23 99,312 OUTREACH COORDINATOR RP (1.00) Yes 02/13/25 110,063 RECREATION COORDINATOR RP (1.00) Yes 03/23/24 110,063 RECREATION COORDINATOR RP (0.80) Yes 04/05/25 52,493 LABORER III (TO LSMD) RP (0.80) Yes 08/10/24 58,952 FACILITY SPECIALIST III RP (1.00) Yes 06/27/25 141,903 RECREATION SUPERVISOR RP (0.80) Yes 08/18/25 60,805 LABORER III
TOTAL (24.00) (39,894) $7,584,600

Santa Maria City CouncilJanuary 20, 2026

Santa Maria City Council
January 20, 2026