Agenda — Santa Maria City Council, March 3, 2026 (part 1 of 3)

Mayor Alice Patino
Mayor Pro-Tem Gloria Flores
Councilmember Maribel Aguilera
Councilmember Carlos Escobedo
Councilmember Gloria Soto

CITY COUNCIL AGENDA

CITY OF SANTA MARIA, CALIFORNIA

CITY HALL
110 EAST COOK STREET

Tuesday, March 3, 2026
CLOSED SESSION - 4:30 P.M.

REGULAR SESSION - 5:30 P.M.

HOW TO ACCESS MEETINGS

1. Meetings can be viewed in video format alongside the on-line interactive agenda at https://www.cityofsantamaria.org/services/departments/city-clerk-records/agenda-center-meetings- portal.

2. The City of Santa Maria Broadcasts City Council Meetings Live on local Comcast Cable Channel 23, at cityofsantamaria.org/tv and on YouTube.com/@CityofSantaMariaCalifornia.

3. Closed Captioning is available in English and Spanish during City Council meetings on Comcast Cable Channel 23 and at cityofsantamaria.org/tv.

4. Meetings are replayed on local Comcast Cable Channel 23 and cityofsantamaria.org/tv on Thursdays at 9:00 a.m. and Tuesdays at 5:30 p.m. Meetings are available on demand at YouTube.com/@CityofSantaMariaCalifornia.

Attendance at public meetings may result in the streaming and recording of your image and/or voice.

AMERICANS WITH DISABILITIES ACT
In accordance with the Americans with Disabilities Act of 1990, if you require a disability-related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk’s Office at (805) 925-0951 extension 2306, or by email at [email protected] at least 48 hours before the meeting. Assisted Listening devices are available for those who attend in Council Chambers. Closed Captioning is available during meetings in English and Spanish on Comcast Channel 23 and at CityofSantaMaria.org/tv.

PUBLIC COMMENT (letters/emails)
(Must be received by 2:00 p.m. in advance of the meeting) Members of the public wishing to submit a public comment or a comment on an agenda item, can email [email protected] or mail to the City Council, Attn.: City Clerk's Office, 110 East Cook Street, Santa Maria, CA 93454. Letters/emails will not be read aloud during the meeting. All correspondence will be distributed to Councilmembers, submissions received after the deadline will not be processed until the following day but will become a part of the official record.

MEETINGS
The City Council holds regular meetings on the first and third Tuesday of every month. Regular meetings start at 5:30 p.m. in the Council Chambers at City Hall, 110 East Cook Street, Santa Maria, California. Special and Adjourned Regular meetings start time are to be determined.

POSTING LOCATIONS OF AGENDA AND/OR CANCELLATION NOTICES Regular meeting agendas will be posted at least 72 hours before the meeting (GC§ 54954(a)(1)).

Agenda and Cancellation Notices can be viewed online and are also posted at Santa Maria City Hall located at 110 East Cook Street, Santa Maria, California.

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CLOSED SESSION

1. CALL TO ORDER
ROLL CALL: Councilmember Aguilera, Councilmember Escobedo, Councilmember Soto, Mayor Pro Tem Flores, and Mayor Patino

2. PUBLIC COMMENT PERIOD
Speakers may provide public comments on any matter within the subject matter jurisdiction of the City Council. Each speaker will be limited to 3 minutes, maximum 15 minutes for Public Comment Period. Unless a majority of the Council objects, the Mayor may provide speakers more or less time to speak. All comments or queries shall be addressed to the Council as a body and not to any specific member thereof. Pursuant to Government Code §54954.2(a)(2), the Ralph M. Brown Act, no action or discussion by the City Council shall be undertaken on any item not appearing on the posted agenda, except to briefly provide information, ask for clarification, provide direction to staff, or schedule a matter for a future meeting.

3. RECESS-CLOSED SESSION
The City Council will immediately recess to a closed session for the following:

3.a Conference with Labor Negotiators, Pursuant to California Government Code §54957.6
Agency Representatives: City Manager David W. Rowlands, City Attorney Thomas Watson, Chief Human Resources Officer Graciela Reynoso, and Negotiations Team.

Employee Organizations: All bargaining units, unrepresented employees, managers, and executives.

3.b Conference with Legal Counsel - Existing Litigation Pursuant to California Government Code §54956.9(d)(1) [one case]
Name of Case: City of Santa Maria v. County of Santa Barbara (Richards Ranch property tax exchange agreement), ADRS Case No. 25-5560-ERF

4. RECONVENE TO REGULAR SESSION
REGULAR SESSION - 5:30 P.M.

5. INVOCATION

6. PLEDGE OF ALLEGIANCE

7. CALL TO ORDER
ROLL CALL: Councilmember Aguilera, Councilmember Escobedo, Councilmember Soto, Mayor Pro Tem Flores, and Mayor Patino

8. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION

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9. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Speakers may provide public comments on any matter within the subject matter jurisdiction of the City Council. Each speaker will be limited to 3 minutes, maximum 15 minutes for Public Comment Period. Unless a majority of the Council objects, the Mayor may provide speakers more or less time to speak. All comments or queries shall be addressed to the Council as a body and not to any specific member thereof. Pursuant to Government Code §54954.2(a)(2), the Ralph M. Brown Act, no action or discussion by the City Council shall be undertaken on any item not appearing on the posted agenda, except to briefly provide information, ask for clarification, provide direction to staff, or schedule a matter for a future meeting.

10. CONSENT CALENDAR
Items on the consent calendar are considered to be routine and customary and are enacted by a single motion with the exception of items removed by a member of the City Council for individual consideration, which shall be individually considered immediately after taking action on the Consent Calendar.

RECOMMENDATION:

Adopt the Consent Calendar as submitted.

10.a CITY MANAGER/CITY CLERK DEPARTMENT

10.a.1 Ordinances and Resolutions
RECOMMENDATION:

Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

10.a.2 Approval of Minutes
RECOMMENDATION:

Approve the Minutes of the regular City Council meeting of February 17, 2026.

10.a.3 Adoption of a Resolution Canceling the Regular City Council Meetings on Tuesday, March 17, April 21, and May 19, 2026
The City Council will consider canceling the regular City Council meetings on Tuesday, March 17, April 21, and May 19, 2026.

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:

Adopt a Resolution canceling the regular City Council meetings on Tuesday, March 17, April 21, and May 19, 2026.

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10.b COMMUNITY DEVELOPMENT DEPARTMENT

10.b.1 2025 General Plan Annual Report
The City Council will receive the 2025 General Plan Annual Report.

Environmental Notice: The item 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:

Direct the Chief Deputy City Clerk to file the 2025 General Plan Annual Report with the California Governor’s Office of Land Use and Climate Innovation and the State Housing and Community Development Department.

10.c FINANCE DEPARTMENT

10.c.1 Payment of Warrants
RECOMMENDATION:

Order ratified subject to having been certified as being in conformity with the budget and having been approved for payment by the Director of Finance.

10.c.2 Payment of Payroll
RECOMMENDATION:

Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

10.d LIBRARY DEPARTMENT

10.d.1 Adoption of a Resolution Approving an Agreement with the County of Santa Barbara and the Cities of Lompoc, Goleta, Santa Barbara, and Carpinteria for the Operation of a Free Countywide Library System for Fiscal Year 2025-2026 The City Council will consider adopting a Resolution approving an Agreement with the County of Santa Barbara to provide for the operation of a Free Countywide Library System for Fiscal Year 2025-2026.

RECOMMENDATION:

Adopt a Resolution approving an Agreement with the County of Santa Barbara, the cities of Lompoc, Goleta, Santa Barbara, and Carpinteria to provide for the operation of a Free Countywide Library System for Fiscal Year 2025-2026; and

1. Authorize the City Manager, or designee, to execute agreement and to appropriate, release, and expend funds and issue warrants to comply with the terms of the agreement.

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10.e POLICE DEPARTMENT

10.e.1 Adoption of a Resolution Awarding a Professional Services Agreement with Sintra Group for Public Safety Background Investigation Services The City Council will consider adopting a Resolution approving a Professional Services Agreement with Sintra Group to provide pre-employment background investigation services for Public Safety.

Environmental Notice: This action is not a project subject to the California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guideline Section 15378(b)(5)).

RECOMMENDATION:

Adopt a Resolution awarding a Professional Services Agreement to Sintra Group for public safety background investigation services; and

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

10.f PUBLIC WORKS DEPARTMENT

10.f.1 Adoption of a Resolution Authorizing a Sole Source Agreement with Genfare, LLC for Genfare Link Subscription
The City Council will consider adopting a Resolution authorizing the execution of a sole source agreement with Genfare, LLC for the implementation, activation, and ongoing support of Genfare Link open payment “tap-to-pay” capabilities, including the procurement of additional farebox equipment, to modernize the Santa Maria Regional Transit fare collection system.

RECOMMENDATION:

Adopt a Resolution authorizing a sole source agreement with Genfare, LLC for the implementation, activation, and ongoing support of the Genfare Link "tap-to-pay" capabilities for the Santa Maria Regional Transit electric fleet; and

1. Authorize the City Manager, or designee, to execute agreement and any necessary amendments.

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10.f.2 Adoption of a Resolution to Authorize Procurement of Transit Shelters Via CalACT/MBTA Cooperative Purchasing Agreement with Tolar Manufacturing Company, Inc.

The City Council will consider adopting a Resolution to procure transit shelters through the CalACT cooperative purchasing agreement with Tolar Manufacturing Company, Inc.

RECOMMENDATION:

Adopt a Resolution authorizing the procurement of transit shelters through the California Association for Coordinated Transportation/Morongo Basin Transit Authority cooperative purchasing agreement with Tolar Manufacturing Company, Inc.; and

1. Authorize the City Manager, or designee, to execute the assignment to purchase agreement

2. 10.g UTILITIES DEPARTMENT

10.g.1 Adoption of a Resolution Authorizing the Purchase of Two Emergency Power Generators
The City Council will consider adopting a Resolution authorizing the purchase of two emergency power generators from United Rentals through the Sourcewell cooperative purchasing contract.

RECOMMENDATION:

Adopt a Resolution authorizing the purchase of two emergency power generators from United Rentals through the Sourcewell cooperative purchase contract; and

1. Authorize the City Manager, or designee, to execute all necessary documents to complete the purchase.

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11. REGULAR BUSINESS
ORDER OF PROCEEDINGS FOR REGULAR BUSINESS ITEMS:

Council Agenda Report to be given.

Questions from the City Council.

Written communications/Public input.

City Council discussion and action.

11.a Introduction of an Ordinance Amending Ordinance No. 2025-03, Revising Titles 2 and 10 of the Santa Maria Municipal Code
The City Council will introduce an Ordinance amending Ordinance No. 2025-03.

RECOMMENDATION:

The City Council to:

Waive first reading and introduce an Ordinance amending Ordinance No. 2025-03, revising Titles 2 and 10 of the Santa Maria Municipal Code to clarify that final approval authority for all recreation fees rests with the City Council; and

1. Confirm the Recreation and Parks Commission’s authority to conduct public hearings and forward recommendations to the City Council; and

2. Set said ordinance for adoption at the next regular City Council meeting. 3.

11.b Measure U Annual Report for the Period Ending June 30, 2025, as Submitted by the Measure U Citizens’ Oversight Committee
The City Council will receive a presentation from City Staff on the Measure U Annual Report.

RECOMMENDATION:

Receive a presentation from City staff on the Measure U Annual Report for the period ending June 30, 2025; and

1. Receive and file the Measure U Citizens’ Oversight Committee Fiscal Year 2024-25 Annual Report.

2. 11.c Continued from September 16, 2025, City Council Meeting - Discussion on a Request to Form an Immigration Ad Hoc Committee
The City Council to discuss a request to form an Immigration Ad Hoc Committee.

RECOMMENDATION:

Council to discuss a request to form an Immigration Ad Hoc Committee.

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12. REPORT BY CITY MANAGER

13. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB 1234

REPORTS)

14. ADJOURNMENT

If you challenge a determination made on a matter on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described on this agenda, or in written correspondence to the city council at, or prior to, the public hearing.

I, Donna G. Schwartz, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted not less than 72 hours at City of Santa Maria City Hall and made available at
https://www.cityofsantamaria.org/services/departments/city-clerk-records/agenda-center- meetings-portal on this 26th day of February 2026.
/s/ DONNA G. SCHWARTZ, CMC
Chief Deputy City Clerk

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1 CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA

February 17, 2026, 5:30 p.m.

City Hall Council Chambers
110 East Cook Street
Santa Maria

Roll Call: Councilmember Maribel Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Gloria Soto, Councilmember Carlos Escobedo, Mayor Alice Patino

Staff Present: City Manager David W. Rowlands, Assistant City Manager Chuen Wu, City Attorney Thomas Watson, Director of Finance Rebecca Campbell, Fire Chief Bradley Dandridge, Director of Community Development Chenin Dow, Interim Director of Recreation & Parks Dennis Smitherman, Director of Public Works Brett Fulgoni, Library Director Dawn Jackson, Chief Human Resources Officer Graciela Reynoso, Director of Utilities Shad Springer, Police Chief Christopher Williams, Chief Deputy City Clerk Donna Schwartz, Assistant City Clerk Alexandra Valadez

_____________________________________________________________________

CLOSED SESSION

1. CALL TO ORDER

2. PUBLIC COMMENT PERIOD
Mayor Patino opened public comment. Speaking from the public was Mike Rochlin.

3. RECESS-CLOSED SESSION
At 4:38 p.m. Mayor Patino recessed to Closed Session.

3.a Conference with Real Property Negotiators Pursuant to California Government Code §54956.8

3.b Conference with Real Property Negotiators Pursuant to California Government Code §54956.8

4. RECONVENE TO REGULAR SESSION
REGULAR SESSION - 5:30 P .M.

5. INVOCATION
Pastor Frank Cassels from Life Way Fellowship Church gave the Invocation.

6. PLEDGE OF ALLEGIANCE
Councilmember Flores led the Pledge of Allegiance.

7. CALL TO ORDER
Mayor Patino called the meeting to order at 5:33 p.m.

8. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION
City Attorney Watson reported that instructions were provided to City staff for Items 3.a and 3.b.

9. PRESENTATIONS

9.a Proclamation Proclaiming February 21 through 28, 2026, as “National Future Farmers of America Week”.

The City Council presented the Proclamation to the Santa Maria Future Farmers of America Chapter.

2 9.b Businesses of the Quarter – January to March 2026 The City Council presented certificates to Kim Rudnic k-Chavez of Advanced Wireless and Kathleen Gabel of Friends of the Santa Maria Public Library.

10. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Mayor Patino invited public comment. Speaking from the public was Robert Gibson, Danny Mogg, Cliff Solomon, Sue Heitman, Elena Magana, Wendy Teodoro, Reynaldo Rodriguez, Lorena Martinez, Teresa Suarez, Sofia, Maria Salguero, and Aaron Crocker.

11. CONSENT CALENDAR
Consent Calendar Items 11.a.1 through 11.e.1 (except 11.d.4) were approved as presented, including the adoption of Resolution Nos. 2026 -23,2026-24, 2026-25, 2026-26, 2026-27, 2026-29, and 2026 -30.

The recorded vote appears with each item below.

Chief Deputy City Clerk Schwartz announced a correction to Attachment B of item 11.d.2. The age of buses is listed as nine 9 years but should be 12 years for a 6 heavy duty floor buses.

For Item 11.d.4, one written public comment and one public speaker were received from Geoffrey Wheeler. Councilmember Soto pulled the item for discussion and a separate vote.

Adopt the Consent Calendar as submitted.

Ayes (5): Councilmember Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Motion carried by a recorded vote (5 to 0)

11.a CITY MANAGER/CITY CLERK DEPARTMENT

11.a.1 Ordinances and Resolutions
Waived the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

Motion carried by a recorded vote

11.a.2 Approval of Minutes
Approved the Minutes of the regular City Council meeting of February 3, 2026.

Motion carried by a recorded vote

11.a.3 Adoption of a Resolution Amending Resolution No. 2026-01 on CalPERS Special Compensation and Fire Battalion Chief Holiday Pay
Action: Adopted as Resolution No. 2026-23.

1. Adopted a Resolution amending Resolution No. 2026 -01, authorizing and approving a Wage and Benefits Package for Public Safety Managers to update special compensation items and align Fire Battalio n Chief holiday pay with CalPERS requirements; and

2. Authorized the Mayor to execute the terms of the Resolution.

Motion carried by a recorded vote

3 11.b COMMUNITY DEVELOPMENT DEPARTMENT

11.b.1 Adoption of a Resolution Approving a Public Convenience or Necessity Determination for a Type 20 Alcohol Beverage Control License for Sprouts Farmers Market at 2170 South Bradley Road
Action: Adopted as Resolution No. 2026-24.

Adopted a Resolution approving a determination of public convenience or necessity for the issuance of a Type 20 (Off -Sale Beer and Wine) alcohol beverage control license for Sprouts Farmers Market located at 2170 South Bradley Road.

Motion carried by a recorded vote

11.c FINANCE DEPARTMENT

11.c.1 Payment of Payroll
Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

Motion carried by a recorded vote

11.d PUBLIC WORKS DEPARTMENT

11.d.1 Adoption of a Resolution Approving the Refurbishment of a 2013 CAT Soil Compactor, Asset No. 6445-13, to FY 2025-26
Action: Adopted as Resolution No. 2026-25.

Adopted a Resolution approving an amendment to the Fleet Replacement Schedule to authorize the refurbishment of 2013 Caterpillar CS56B Soil Compactor, Asset No. 6445 -13, in Fiscal Year 2025-26.

Motion carried by a recorded vote

11.d.2 Adoption of a Resolution Approving the Disposition of Older Transit Vehicles and Equipment Action: Adopted as Resolution No. 2026-26.

1. Adopted a Resolution authorizing the disposition of older transit vehicles and equipment; and

2. Authorized the City Manager, or designee, to sign sales agreements with a reputable auction company for the surplus of the transit vehicles.

Motion carried by a recorded vote

11.d.3 Adoption of Resolution Approving a Proposed Establishment of a No Stopping Zone on West Boone Street
Action: Adopted as Resolution No. 2026-27.

Adopted a Resolution establishing a No Stopping Zone on West Boone Street.

Motion carried by a recorded vote

4 11.d.4 Adoption of a Resolution Approving the Establishment of a Crosswalk on South College Drive Action: Adopted as Resolution No. 2026-28.

Adopted a Resolution approving the establishment of a mid -block crosswalk on South College Drive approximately 200 feet north of the East Camino Colegio and South College Drive intersection.

Staff directed to add this item to the ADA budget discussion for enhancements related to ADA.

Ayes (5): Councilmember Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Motion carried by a recorded vote (5 to 0)

11.d.5 Adoption of a Resolution Approving the Award of a Design-Build Agreement with Structural Preservation System, LLC for the Town Center East Parking Structure Rehabilitation 2025 Project
Action: Adopted as Resolution No. 2026-29.

1. Adopted a Resolution approving the award of a Design-Build Agreement to Structural Preservation System, LLC for the Town Center East Parking Structure Rehabilitation 2025 Project in the amount of $3,061,980; and

2. Authorized the City Manager, or designee, to execute the agreement and any future amendments related to this agreement up to the contingency amount of $200,000.

Motion carried by a recorded vote

11.e UTILITIES DEPARTMENT

11.e.1 Adoption of a Resolution Approving Disposal Fees for MarBorg Industries at Santa Maria Regional Landfill
Action: Adopted as Resolution No. 2026-30.

Adopted a Resolution approving disposal fees for Marborg Industries at the Santa Maria Regional Landfill effective January 1, 2026, July 1, 2026, and July 1, 2027.

Motion carried by a recorded vote

12. REPORT BY CITY MANAGER
City Manager Rowlands reported the next City Council Meeting is scheduled for March 3rd. Items on the agenda include the General Plan Annual Report for 2025, and the Measure U Annual Report for the Period Ending June 30, 2025.

13. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB 1234 REPORTS)

14. ADJOURNMENT
There being no further bu siness before the City Council, Mayor Patino declared the City Council meeting adjourned at 7:07 p.m. in memory of Linda Glines.

Take the Immigration Ad Hoc Committee item off the table for it to be agendized to the next regular City Council meeting.

Ayes (5): Councilmember Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Motion carried by a recorded vote (5 to 0)

Chief Deputy City Clerk Alice M. Patino, Mayor

5 COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: David W. Rowlands, City Manager

DATE: March 3, 2026

SUBJECT: Adoption of a Resolution Canceling the Regular City Council Meetings on Tuesday, March 17, April 21, and May 19, 2026

Description:

The City Council will consider canceling the regular City Council meeting s on Tuesday, March 17, April 21, and May 19, 2026.

RECOMMENDATION:

Adopt a Resolution canceling the regular City Council meeting s on Tuesday, March 17, April 21, and May 19, 2026.

BACKGROUND:

Section 2-1.01 of the Santa Maria Municipal Code sets the time, day, and place for holding City Council meetings to discuss items of City business. The City Council has the authority to cancel meetings due to a lack of quorums or lack of business items.

DISCUSSION:

Cancel the regular City Council meetings scheduled for Tuesday, March 17, April 21, and May 19, 2026.

Alternative(s)
The City Council can decide not to cancel the March 17, April 21, and May 19, 2026 , meetings and meet as regularly scheduled.

Fiscal Considerations
There is no foreseeable fiscal impact as a result of this agenda item.

2 Impact on the Community
While the public will not have the ability to bring concerns to the City Council on these dates due to the cancellation of the meetings, Councilmembers and staff remain available by email or telephone to address residents’ concerns during the regular business days.

ATTACHMENT(S)
A. Resolution – Canceling the March 17, April 21, and May 19, 2026, City Council Meetings.

Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

CANCEL THE REGULAR CITY COUNCIL MEETINGS ON
TUESDAY, MARCH 17, APRIL 21, AND MAY 19, 2026

WHEREAS, the City Council meets on a regular schedule twice a month, on the first and third Tuesdays; and

WHEREAS, the City Council has the authority to cancel meetings when necessary; and

WHEREAS, it has been determined to cancel the City Council meetings scheduled for Tuesday, March 17, April 21, and May 19, 202 ,6 due to a lack of quorums or lack of business items.

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

SECTION 1. The regular City Council meetings scheduled for Tuesday, March 17, April 21, and May 19, 2026, have been canceled; and

SECTION 2. 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.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 3rd day of March 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: Mayor and City Council

FROM: Chenin Dow, Director of Community Development

DATE: March 3, 2026

SUBJECT: 2025 General Plan Annual Report

Description:

The City Council will receive the 2025 General Plan Annual Report.

RECOMMENDATION:

Direct the Chief Deputy City Clerk to file the 202 5 General Plan Annual Report with the California Governor’s Office of Land Use and Climate Innovation and the State Housing and Community Development Department.

BACKGROUND:

The General Plan Annual Report is an informational item that documents the City’s progress in implementation of the General Plan during the previous calendar year. The City annually provides the report to the Governor’s Office of Land Use and Climate Innovation (LCI) and the Housing and Community Development (HCD) Department in conformance with State law.

DISCUSSION:

Chapter II of the report provides a summary of actions taken in 202 5 by the Planning Commission, data on 202 5 building permits, discretionary applicat ion volume and processing, and other information related to activities managed by the Community Development Department.

Chapter III presents information requested by HCD specific to the Housing Element , including detailed information on the residential project applications received, residential building permit applications, and the number of units completed and occupied by income affordability categories. During 2025, the City issued 521 building permits for 930 new residential units (five permits for five single-family units, one mobile home, 479 permits for the same number of accessory dwelling units, and 36 permits for the construction of 445 multi-family units). Since the Cycle started in 2023, all permitted residential units are credited to the City’s Sixth-Cycle Regional Housing Needs Allocation (RHNA) by income 2 affordability category. For example, the 479 accessory dwelling units permitted in 2025 are credited towards the low, very-low and acutely-low-income RHNA categories. Table B of the General Plan Annual Report provides a complete summary of the City’s satisfied and remaining RHNA for the Sixth Cycle.

Alternative(s)
None. The Annual Report is a requirement of State Law.

Fiscal Considerations
None. The Annual Report does not create fiscal impacts.

Impact on the Community
The General Plan Annual Report allows the City Council and the public to monitor the implementation of all elements of the General Plan, including the Housing Element.

ATTACHMENT(S)

A. 2025 General Plan Annual Report

2025
General Plan
Annual Report
SP2026-0002

City of Santa Maria

Prepared by the
Community Development Department

March 2026

ATTACHMENT A

CHAPTER I
Introduction and Summary

I - 1

CHAPTER I –

INTRODUCTION AND SUMMARY
A.

Purpose of the Annual Report
Section 65400 of the California Government Code requires the City to file an annual report addressing the status of the General Plan and the progress made toward goals and objectives. The annual report provides a means to monitor the implementation of the General Plan and determine if changes need to be made in the plan or its implementation programs.

In conformance with Government Code, the City submits this report to the California Department of Housing and Community Development (HCD) and to the Governor’s Office of Planning and Research (OPR) each year.

Purpose of the General Plan
A General Plan is a policy document required by State law that provides long-range guidance for the plans and actions of the City. The General Plan articulates the community's vision through goals, policies, and the implementation measures established to achieve those goals and policies. The General Plan is a public document and is available for all to read and use as needed. Copies are available for review at the Santa Maria Public Library, the City Clerk's Office, a nd on the City website. Each member of the City Council and the Planning Commission, as well as each City department, has a copy of the General Plan.

As an informational document, the General Plan describes existing conditions, makes projections, and establishes a vision for the community's future. The General Plan provides the public with information about the City and the direction that it seeks to move.

As a policy document, the General Plan establishes guidelines for decision-makers. Using these guidelines, the City Council and Planning Commission take incremental steps toward achieving the larger goals of the City. The City applies implementation programs contained in the General Plan through day-to-day operations of the City.

Status of the Adopted Elements of the City’s General Plan State law requires that a General Plan address the following topics: Land Use, Circulation, Housing, Safety, Noise, Conservation, Open Space and Environmental Justice. The General Plan may present each topic as a distinct Element or may combine the topic discussions as appropriate. For example, the City’s current Resource Management Element combines the Conservation and Open Space topics, and includes discussions on Growth Management, Recreation and Parks, Public Facilities and Services. Optional subjects may also be included as an element of the General Plan, such as the City’s Economic Development Element.

In November 2019, the City Council authorized a comprehensive update of the General Plan to update each of the existing Elements. Since that time the Santa Maria General Plan Update has been prepared consistent with the requirements of State law and addresses the relevant items addressed in Government Code section 65300, et seq.

The effort has included multiple years of General Plan public outreach including pop-up events, online surveys, communitywide workshops, stakeholder interviews, Technical Planning Advisory Committee (TAC) meetings, Planning Commission and City Council presentations, joint Planning Commission and City Council Study Sessions, and circulation of the Draft Policy Document and Environmental Impact Report for public comments. Input from the Santa Maria community has been collected through a multipronged public outreach effort spanning the entire

planning process (from late 2019 through today). In addition to the public outreach activities, preparation of the General Plan Vision Statement, Preferred Land Use Alternative Map, and policy frameworks were reviewed by the Technical Advisory Committee (TAC).

The Public Draft General Plan was released for public review from August 14, 2025, through September 28, 2025. The Draft Environmental Impact Report was also circulated for the required 45-day public review during this same time frame.

State Government Cod e Section 65580 includes deadlines which only apply to Housing Elements. In order to comply with these deadlines, the City prepared the update to the Housing Element separately from the other Elements. The City Council adopted the Sixth Cycle Housing Element on December 5, 2023, and HCD certified the adopted housing element, finding it to be in substantial compliance with State Housing Element Law (Gov. Code, § 65580 et seq) , on January 2, 2024. The adopted Housing Element will be amended as necessary to ensure consistency across all of the Elements.

CHAPTER II
Implementation of the
General Plan

CHAPTER II –

IMPLEMENTATION OF THE GENERAL PLAN
The City of Santa Maria ’s implementation programs identified in the General Plan include tools already in place and used on a day -to-day basis in the City. Some of the various tools available to further the City’s goals and objectives include the Budget/Capital Improvement Program , Specific Plans and Master Plans, Zoning and Subdivision Regulations, Growth Impact Mitigation (AB1600) Fees, CDBG/HOME Funds and Grants, Development Agreements, and Improvement Districts .

These and other implementation activities are described below.

Planning Commission
The City of Santa Maria’s Planning Commission is designated as the “Planning Agency,” as authorized by Section 65100 of the State Government Code and Section 12 -2.117 of the Santa Maria Municipal Code. The Commission has discretionary and advisory responsibilities that are authorized by Chapter 2 -15 of the Municipal Code and delegated under Title 11 (Subdivision Ordinance) and Title 12 (Zoning).

During 2025, the Commission held 10 public meetings and 13 study sessions. Seven of the study sessions had an educational component, providing information on updates to the General Plan , Objective Design Standards and Accessory Dwelling Unit Ordinance . The Planning Commission acted on 11 discretionary permits during 2025. In the advisory rol e, the Planning Commission forwarded two written Downton Permit recommendations to the City Council, and a recommendation for the Council to approve the City’s Objective Residential Design Standards.

Chart II -1 provides a comparison of the Planned Developm ent Permits, Conditional Use Permits, and General Plan Land Use /Zoning Amendment applications acted upon by the Planning Commission during the past five years. As Chart II -1 identifies, no General Plan Land Use/Zoning Amendment applications were presented to Planning Commission in 2025.

* Considers amendments to previously approved discretionary projects and project denials 7 3 3
12 10
1 14
9 1
11 3
4 7
4 00
2 4
6 8
10 12
14 16
Planned Development Permits Conditional Use Permits General Plan Land Use/Zoning Map Amendment Recommendations
Chart II-1
Planning Commission Actions*
2021 2022 2023 2024 2025

Zoning Text Amendments
The Planning Commission provides recommendations to the City Council on proposed text amendments of Santa Maria Municipal Code Title 12, referred to as the Zoning Ordinance .

The Planning Commission made recommendations on two Title 12 technical text amendments in 2025, one which updated the Accessory Dwelling Unit Ordinance f or consistency with State Law changes, and the other regarding Battery Energy Storage Systems.

General Plan Map Amendments
No General Plan (Land Use) Policy Map amendments were presented to the Planning Commission in 2025.

Land Divisions
No Subdivision or Parcel Map applications were brought before the Planning Commission in 2025.

Specific Plans
The Planning Commission provides recommendations to the City Council on new Specific Plans and proposed amendments to existing Specific Plans . There were no Specific Plan amendment applications acted upon during the year.

Building and Safety Division
The Building and Safety Division is responsible for administration and enforcement of state and local codes, ordinances and regulations dealing with the construction, alteration, maintenance and use of structures, appurtenances and land. These regulations include the building, housing, dangerous building, mechanical, electrical, plumbing, swimming pool, and sign codes, as well as the California State Mobile Home Park re gulations and City zoning ordinances.

The Building and Safety Division continues to publish Monthly Building Permit Reports.

Copies of the reports from past years are also available as public information on the City webpage.

1. Board of Appeals
The Building and Safety Division also provides staff support to the seven -member Board of Appeals which hears appeals of decisions made by the City Building Official, and makes recommendations regarding California Building Code provisions. No appeals were submitted or heard in 2025.

2. Title 9 – Building Regulations
The following building regulations were in effect in 2025: The 2022 California Building Code, Residential Code, Historical Building Code, Existing Building Code, Energy Code, Fire Prevention Code, Plumbing Code, Electrical Code, Mechanical Code, Green Building Standards Code, and the 20 21 International Property Maintenance Code.

3. Permits and Inspections
In 2025, the Building Division received 3,331 building permit applications, issued 2,658 building permits, and received 70 sign permit applications and issued 56 sign permits.

Building Division staff inspected 16,026 individual construction, safety, site and building improvements during the past year, 312 of which were in association with new Business Licenses.

4. Issued Permits – Residential Units
In 2025, the City issued 521 building permits for 930 new residential units (5 permits for 5 single-family units, 1 mobile home, 479 permits for the same number of accessory dwelling units, and 36 permits for 445 multi-family units).

5. Completed Residential Units
After conducting final inspections, t he City issued c ertificates of occupancy for 886 completed residential units (18 single-family, 1 mobile home, 327 accessory dwelling units, and 540 multi-family units) in 2025.

Chart II-2 below provides a comparison of the overall number of building permit applications received, building permits issued and new residential unit building permits issued during the past five years.

2670
2417
514
2837
2503
503
2726
2366
449
3036
2427
476
3331
2658
521
0 500
1000
1500
2000
2500
3000
3500
Building Permit Applications Received Building Permits Issued Building Permits Issued for New Residential Units
Chart II - 2
Building Permit Activity
2021 2022 2023 2024 2025

Planning Division
Planning Division activities include administration of the City's General Plan, development and subdivision review, preparation and improvement of specific plans, preparation of zoning ordinances, processing annexations, bikeway implementation, providing demographic and census information, conducting environmental review, and providing customer services such as informing the public of the City's land use policies an d development ordinances. The Planning Division reviews federal, state, and county legislation, and responds to survey and data reporting mandates from the State.

The Planning Division provides staff support to the Planning Commission and the Zoning Administrator. Administrative functions include the scheduling of meetings, preparation of agendas, posting hearing notices, and preparation of minutes. The City posts Planning Commission and Zoning Administrator meeting agendas and minutes on the City webpage.

Planning staff provides land use analysis, environmental review as required under the California Environmental Quality Act (CEQA), and prepares draft discretionary permits , resolutions, ordinances, and staff reports for the Planning Commission and City Council.

The Planning Division also manages work on policy documents, such as the General Plan Update. Planning Division coordinates the consultants working on the update effort, and oversees State grant funds which the Division obtained for the effort.

The Planning Division publishes a city -wide list of proposed and approved development projects in the City , depicting each project’s location on an attached summary map. This ‘Major Development List’ is updated every six months, with the current and past development activity reports maintained and publicly accessible on the City webpage.

Project Application Activity
The Planning Division received the following types of applications during 2025 (project type prefix in parenthesis):

3 General Plan Land Use Map and Zoning Map amendments (GPZ) 10 Planned Development Permits (PD)
16 Conditional Use Permits (U)
4 Lot Line Adjustment/Mergers (SUB)
14 Project amendments (A)
9 Downtown Permits (DT)
7 Planning Permits (P)
6 Pre-Applications (PRE) (fee estimates and/or conceptual reviews) 10 Special Projects (SP), all were City initiated
92 Temporary Activity Permits (TUP)
15 Zoning Verifications (ZA)

Chart II -3 provides a comparison of the Planned Development Permits, Conditional Use Permits, and General Plan Land Use/Zoning Amendment applications received over the past five years.

The Community Development Department also received 292 business license applications, many of which included Home Occupation requests. The City did not receive any applicant- initiated applications to amend the text of the Santa Maria Municipal Code Title 12 (the Zoning Ordinance) during 2025.

Housing Element Annual Reporting
As with prior years, Chapter III of this Annual Report describes the actions taken (by the City) in implementing the Housing Element , including meeting the Regional Housing Needs Assessment allocation, during the previous calendar year (Government Code Section 65400).

State legislation requires that the City provide substantial amounts of data for every stage of a residential unit’s progress, from initial discretionary application, entitlement approval, building permit application and issuance, and ultimately the completion of each unit as documented by the issuance of a certificate of occupancy. Per State Law, this information must be provided in forms and tables provided by HCD. As the resulting HCD tables require extremely large multi- page spreadsheets, the following Chapter III provides summaries of the table information.

The raw data spreadsheets and tables provided to HCD and OPR are available for review at the Community Development Department.

12 20
3 17
12 3
20 24
1 4
9 1
10 16
3 0
5 10
15 20
25 30
Planned Development Permits Conditional Use Permits General Plan Land Use/Zoning Amendment
Chart II - 3
Discetionary Applications Received
2021 2022 2023 2024 2025

CHAPTER III
Housing Element
Annual Report
(CCR Title 25 §6202)

III - 1

California Department of Housing and Community Development Housing Element Annual Progress Report Forms and Tables – 2025 Summary

Table A – Housing Development Applications.

For this HCD reporting, an “application” is a formal submittal of a project for approval and is either an application for a discretionary entitlement, or a project where only a ministerial process is required (e.g., ‘by right’ projects and building permit applications).

Between January 1 and December 31, 2025, the City deemed 633 residential application submittals (for a total of 896 residential units) complete for processing.  Two of these were for discretionary project entitlement applications, consisting of 66 units. Seven are low-income units and 59 are above moderate.  The remaining 631 applications are building permit applications currently in review by City staff , consisting of ADUs, single-family dwellings, duplexes and building permit applications associated with recently approved discretionary projects in the Downtown Specific Plan and the Bellecrest project.

Table A2 – Annual Building Activity Report Summary
The City issued discretionary entitlements, building permits, and issued certificates of occupancy for competed residential units during 2025. The unit types included Single - family attached, single family detached, units in multi -family structures, Accessory Dwelling Units, and mobile homes. These actions resulted in housing being made available for the following income level households:

Building Permits Issued – Total 930 Units
125 Acutely Low-Income Non-Deed Restricted
15 Very Low-Income Non-Deed Restricted
339 Low-Income Non-Deed Restricted
451 Above Moderate-Income

Certificates of Occupancy – Total 886 Units
86 Acutely Low-Income Non-Deed Restricted
104 Very Low-Income Deed Restricted
10 Very Low-Income Non-Deed Restricted
239 Low-Income Deed Restricted
231 Low-Income Non-Deed Restricted
1 Moderate Income Deed-Restricted
215 Above Moderate-Income

III - 2

III - 3

Table B – Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
Income Level
RHNA
Allocation by
Income Level
Projection
Period -
06/30/2022-
02/14/2023
2023 2024 2025 2026 2027 2028 2029 2030 2031
Total
Units
to
Date
Total
Remaining
RHNA by
Income
Level

Acutely Low
Deed
Restricted
-
-
-

-
125

- Non-Deed
Restricted -
-

125

-
Extremely
Low
Deed
Restricted
-
-
-

-
-

- Non-Deed
Restricted -
-

-
Very Low
Deed
Restricted
1,032
-
-

-
140

892 Non-Deed
Restricted -
-

15 -

-
Low
Deed
Restricted
536
184
-

-
1,567

- Non-Deed
Restricted 254
355

435

339

-
Moderate
Deed
Restricted
731
-
-

-
-

731 Non-Deed
Restricted -
-

-
Above
Moderate

3,119 17
36 47

451

551

2,568
Total RHNA

5,418
Total Units 455

391

482

930

2,258

4,191

III - 4

Table C – Sites Identified or Rezoned to Accommodate Shortfall Housing Need Completion of this table is only required if a jurisdiction has a shortfall of available sites for the development of housing pursuant to Government Code Section 65583. Through the Sixth-Cycle Housing Element, the City of Santa Maria documented sufficient available sites for the development of the City’s fifth-cycle Regional Housing Needs Assessment allocation.

The City adopted the Sixth-Cycle Housing Element on December 5, 2023, with HCD finding the Element to be in substantial compliance with State Housing Element Law (Gov. Code, § 65580 et seq) on January 2, 2024. The City has a total allocation of 5,418 units for the 2023 through 2031 RHNA planning period. The Sixth-Cycle Housing Element documents the presence of sufficient sites available within the City to accommodate this current RHNA cycle; therefore, the completion of this table is not necessary.

III - 5

Table D – Program Implementation Status
Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 1.A:

Incentives for
Affordable
Housing
The City will provide incentives
and/or assistance in securing
funding to facilitate the production
of 100 units affordable to low
and/or moderate-income
households by 2031.
2031 6th Continuous The City strives to facilitate more affordable housing through the reduction of financial barriers for new construction and redevelopment of affordable housing projects. The City will provide incentives for low- and moderate-income housing developments through one or more of the following actions:
• Approval of density bonus and incentive requests.
• Expedited permit processing.
• Applications for State and federal funding on behalf of a nonprofit, under a specific program to construct affordable housing including persons with physical disabilities or developmental disabilities.
• Provision of financial incentives such as reducing or waiving select City fees for 100 percent affordable housing projects.

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

Units Perlman Apts. (DT2025-0003) entitled for
149 Deed restricted Low Income Units on
8/5/2025
Santa Maria Seniors: Senior (5-story
Modular) (B21-0920) C of O issued to 104
Very Low, 55 Low, and 1 Mod. Income Deed
Restricted Units on 5/2/2025
Centennial Square Apts.: C of O issued to
184 Low Income Deed Restricted Units on
6/12/2025
Major
Development List
Jan. 2026

(See Table A and
A2)

Program 1.B:

Density Bonus
Permit at least 100 new below
market rate units through density
bonus provisions by 2031 (i.e., 50
new below market rate density
bonus units by 2027).
2027 6th Continuous Government Code Section 65915 requires that a jurisdiction adopt a local Density Bonus Ordinance consistent with State law.

The City’s local ordinance is c ontained in Zoning Ordinance Chapter 12-48. The City will update the ordinance as needed to ensure that its local ordinance remains consistent with State law, but in all cases will continue to apply the most current State law even before local amendments a re adopted. The City will also promote the use of the Density Bonus Ordinance through user - friendly materials to increase awareness and use of density bonus provisions by private property owners and developers.

Units Centennial Gardens: C of O issued to 160
units, including a 21% Density Bonus (26
additional units) (2024).

Chapter 12-48
Density Bonus
Program 1.C:

Mixed-use
Development
The City will continue to process
mixed-use development requests,
as they are initiated from private
property owners, in accordance
with Chapter 12-49 of the
Municipal Code.
2031 6th Continuous The City’s Mixed-Use Ordinance (Zoning Ordinance Chapter 12- 49) promotes the development of mixed-use projects in certain areas through various measures such as permitting
underutilized motel conversions to mixed-use projects, allowing commercial ground floor uses, and granting reduced standards for parking, setbacks, landscaping, open space, or increased height.

Units Gateway Mixed Use Apts.: 18 Units (C of O
issued Jan. 2025)
Elements Mixed Use Apts.:167 Units (C of O
issued Feb. 2025)
Chapter 12-49
Mixed-Use
Projects

III - 6

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 1.D:

Accessory
Dwelling Units
Facilitate production of 1,512
ADUs by 2031.
2031 6th In progress,
Continuous
Monitor the production of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) contribution towards affordable housing to ensure production is consistent with Housing Element projections. Also, conduct annual ADU rental income surveys with the General Plan Annual Reporting to document the affordability of ADUs. If it is determined that the affordability of ADUs is not in keeping with the anticipated affordability levels in the Housing Element inventory or that ADU production is not keeping pace with projections, the City will implement additional measures to facilitate the production and affordability of ADUs as one of the projected housing types in the overall production of affordable housing.

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

Units The City issued Final Certificates of
Occupancy for 326 ADUs in 2025.
1,027 ADUs have been issued occupancy in
the 6th Cycle to date.

The survey of rents for the 2025 occupied
ADUs indicates affordability levels are
consistent with Housing Element projections.

See past year’s
General Plan
Annual Reports for
Finaled and
Occupied ADU
counts.
(General Plan |
City of Santa
Maria)

See Table A2 for
ADU affordability
Program 1.E:

Prioritization of
Services
The City will continue to grant
priority for sewer hook-ups and
service to lower- income housing
developments
2031 6th Continuous As required by Government Code Section 65589.7, the City adopted a written policy providing for priority of water and sewer services to affordable housing developments per Resolution 2006-155. The City will continue to enforce this policy.

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

Other The City provided Golden State Water with a
copy of the Housing Element immediate after
its adoption.

The City continues to provide prompt
response to residential developments
requesting Water and Sewer service.

Before a unit receives a certificate of
occupancy (C of O) the unit must be
connected to City water and Sewer. 886
units were issued C of O’s in 2025, including
670 units affordable to lower income
households
See Table A2
Program 1.F:

Annexation
Program
If future annexations are
supported through the General
Plan Update annexation analysis,
and those areas are determined
to be suitable for residential
development, complete
annexation of additional land for
residential development by 2031
2031 6th In process If an application for annexation is received, the City will analyze the whole of the application to determine if residential development would be a suitable land use to include in the annexation process for the site. While annexation of additional land is not necessary to accommodate residential development for the 6th Cycle Housing Element, annexation does provide the opportunity for the City to add available residential sites for future cycles.

Units The update to the City of Santa Maria 2045
General Plan includes proposed annexation
of 985-acres with conceptual zoning to
accommodate a mix of uses, including
residential zoning sufficient to accommodate
over 3,500 future units.

The Annexation is subject to future
application approval by the Santa Barbara
County LAFCO.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

III - 7

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 1.G:

Manufactured
Homes
Zoning Ordinance amended to
clearly define manufactured
homes on a permanent
foundation as a conventional
single-family home consistent
with State Law.
2024 6th Continuous,
In process
Government Code Section 65852.3 requires manufactured
homes on a permanent foundation to be allowed in the same manner and in the same zone as a conventional stick-built structure. The City’s practice is to treat manufactured homes on a permanent foundation as a conventional single-family home.

The City will amend the Zoning Ordinance to clearly reflect the City’s practice that manufactured homes on a permanent
foundation are subject to the same regulations as single-family homes.

Other –
Code
Amendment
The City continues to treat manufactured
homes on a permanent foundation as a
conventional single-family home, consistent
with State Law.

The Planning Division has developed a draft
definition to be added to the Municipal Code
which will be presented to the City Council
upon conclusion of the General Plan Update
in April 2026.

Title 12 Definition -
SF Dwelling
Program 1.H:

Housing on
Religious
Institution Sites
Through this outreach, the City’s
goal is that application(s) for
housing on religious institution
properties are applied for, and at
least 10 housing units are
permitted on site(s) with religious
institution uses by 2031.
2031 6th Not yet started Assembly Bill (AB) 1851 (2020) encourages the use of religious facility properties (including parking lots) for housing projects.

AB 1851 prohibits cities from requiring the replacement of parking spaces lost due to the construction of housing units, eliminating up to 50 percent of the required number of spaces (Government Code §65913.6). The City to conduct outreach to religious institution property owners and operators to inform them of AB 1851 to encourage housing development.

Other -
Outreach
The City has not been contacted by religious
facility property representatives regarding
adding housing under AB 1851 in 2025.

Program 1.I:

Surplus Land
Act Sites
Over 200 lower -income units
permitted on identified sites by
January 2031.

2031 6th In progress Various identified housing sites are City owned and have been designated as surplus land consistent with the Surplus Land Act (the Act). These sites (APNs 121 -224-035, 123 -280-026, 125 - 320-049, 123-043-019) are near the intersection of Main Street and Broadway, at the core of the Downtown Specific Plan. The City is in communication with HCD’s Public Lands Team to ensure that all provisions of the Act are being met. The City declared these properties ‘surplus land’ and issued a notice of availability on these sites to required parties in compliance with Surplus Land Act provisions, Government Code Section 54220.

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

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

Units Pearlman Apts. Surplus Lands Project
entitled on 8/5/2025 for 150 Low Income
Deed Restricted units.

Alvin-Newton Apts Surplus Lands Project
entitled on 10/3/2023 for 82 non-deed
restricted units.

Pearlman Apts.

Council Approval
8/5/2025

Alvin-Newton
Apts. Council
Approval
10/3/2023

Program 1.J:

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

January
2031
6th Continuous The City will pursue supplemental capital improvement project funding, such as through state or federal grant funding, as a way to support infill development and facilitate housing supply and affordability. Through regular meetings (currently monthly) with a hired consultant, the City is kept apprised of current state and local funding opportunities, including for infrastructure project assistance and grants.

Other –
Infrastructure
to support
units
Church St. Sewer Project. 2,500 feet of
upgraded sewer line in the Downtown core
with REAP Grant funds used.

Downtown Sewer
Improvements |
News | City of
Santa Maria

Church St Sewer
Bid Award -
Council
11/19/2024
Agenda - Item

11.e.5

III - 8

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 1.K:

Accessory
Dwelling Unit
Ordinance
Updates
Zoning Ordinance amended to
regulate ADUs consistent with
State law.
2031 6th Completed The City will update the ADU Ordinance to comply with current State law based on HCD review.

Units The City regularly updates our ADU
Ordinance (Chapter 12-56) for consistency
with State Law. The most recent update was
adopted by Council 10/21/2025
ADU Ordinance
Amendment
Council Agenda
10/21/2025 Item

14.a
Program 2.A:

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

2031 6th Continuous Housing rehabilitation seeks to extend the useful life of the City’s existing housing stock. Depending on the age and condition of a structure, the code compliance and housing rehabilitation programs of the City effectively ensure that housing is improved for the residents.

The Minor Home Repair Program, which began in 2013, is
operated by Community Action Partnership of SLO County, Inc. (CAPSLO, Inc.) as a subrecipient to the City. The program targets elderly, disabled, and/or low and very low -income households in Santa Maria with the construction and installation of handicapped access improvements (ramps, wheelchair lifts, door widening), removal of architectural barriers, health and safety repairs, such as plumbing, electrical, exterior and interior carpentry (porches, decking, stairs, flooring) and building code violations.

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

Units As of July 1, 2025, the City did not dedicate
CDBG funds toward residential
rehabilitation/minor home repair; however,
housing rehabilitation services continued to
be available to eligible residents through an
alternative funding source through the
County of Santa Barbara’s grant funding
consortiums. The City designated Permanent
Local Housing Allocation (PLHA) funds to
ensure that minor home repair services
remain accessible. The City may consider
allocating CDBG funds for housing
rehabilitation again in future program years.

The draft General Plan Update Health and
Environmental Justice Element proposes a
new policy (HEJ2.2) Advance Housing
Rehabilitation with four action strategies.

Community
Development
Block Grant
(CDBG) Program |
City of Santa
Maria

Annual Action
Plan 2025-26

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045
Program 2.B:

Code
Enforcement
Program
The City will continue its
proactive resolution of health and
safety code violations, and will
promote the use of the minor
home repairs programs through
code enforcement efforts (see
objective under Program 2.A,
Minor Home Repair Programs).
2031 6th Continuous Enforcing housing and building codes directly links to ensuring the safe and habitable condition of the housing stock, and thus the continued viability of neighborhoods. The Code Enforcement Division strives to ensure that all housing within Santa Maria meets life, health, and safety provisions.

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

Other
Preservation
of Units /
Health and
Safety
Code Enforcement Division responded to
over 800 service requests involving
residential properties in 2025.

Residential
Neighborhood
Codes Brochure

Service Request
Form

III - 9

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 2.C:

Energy
Compliance and
Conservation
Increased participation in local
utility upgrades programs.
2031 6th Continuous Energy conservation plays a vital role in providing decent, affordable housing. The City will solicit information from local utility providers about conservation programs, rebates, and low- income assistance programs and promote available programs to assist residents with energy improvements and upgrades. To monitor resident participation in local unity upgrades programs, the City will request local utilities report out on these programs within City limits.

Households The City of Santa Maira is a member of

CENTRAL COAST COMMUNITY ENERGY
(3CE), a Community
Choice Energy agency established by local
communities to source
clean and renewable electricity for Monterey,
San Benito, and Santa
Cruz counties while retaining the utility
provider’s traditional role
delivering power and maintaining electric
infrastructure as well as
billing.

One member of the City Council sits on the
Policy Committee, with the City Manager on
the Operations Committee
Home - Central
Coast Community
Energy

Program 2.D: At-
Risk Affordable
Housing Units
Preserve all existing below-
market rate housing units during
the planning period, including the
six units considered at moderate
risk (New Visions at 1106 N.

School St.).
2031 6th Continuous Continue monitoring at-risk housing units in Santa Maria. As part of the monitoring program, check the conversion risk status on an annual basis and include the information as part of the Housing Element Annual Progress Report.

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

Units The City contacted one project considered to
be at-risk (‘Moderate Risk’ per the Housing
Element) New Visions, which contains six
senior units. The operator, SMILE
Corporation, indicated they do not intend to
convert these units to market rate.

OPTIONS Family
of Services
Program 2.E:

Replacement
Housing
Requirements
Implement State law
requirements when applicable
during development applications
and ensure 100 percent of
protected units are replaced in all
applicable projects during the
planning period.
2031 6th Continuous Pursuant to Government Code 65583.2(g)(3) and 65915, the City will require the replacement of units affordable to the same or lower-income level as a condition of any development on a non- vacant site as required by SB 330 and State law.

Units There were no instances of low or very low-
income affordable units needing being
demolished in 2025.

Program 3.A:

Residential
Permit Process
Monitoring and
Improvements
Meet with five housing developers
to discuss the City’s approval
processes to inform each
monitoring report. Strive to reduce
the average length of time from
deemed complete to project
approval for residential mixed-use
and multi -family development in
part through implementation of
Program 3.B (Objective Design
Standards) and Program

3.C (Conditional Use Permits and
Planned Development Permits)
2031 6th Continuous The City processes permits as quickly and efficiently as possible and will continue to evaluate the permitting process to ensure the process remains streamlined. The evaluation will consider approvals and denials, the number of applications, length of the approval process, the involvement and speed of consultants on producing the appropriate environmental analysis for the project as required by the California Environmental Quality Act (CEQA), and types of conditions imposed including cost and any
reductions in the initially proposed number of units. As part of the evaluation, the City will also solicit and consider input from housing developers including non-profit organizations. The monitoring program will review Downtown Permits, Conditional Use Permits (CUP) and Planned Development (PD) Permits
proposing residential uses.

Units The City has adopted Objective Residential
Design Standards (Program 3-B).

To ensure consistency with new General
Plan policies, Program 3-C regarding
Conditional Use Permit and Planned
Development Permit processing will be
developed upon conclusion of the General
Plan Update and Adoption process in April
2026.

Objective
Residential Design
Standards | City of
Santa Maria

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

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Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 3.B:

Objective Design
Standards
The City will develop and adopt
objective design and
development standards for multi-
family and mixed-use projects
and thereby shorten the time for
City review of and action on
residential mixed-use and multi-
family developments compared to
current typical processing time
(see Appendix C, Section C.2.4).
2025 6th Completed Consistent with State law, including the Housing Accountability Act, the City will adopt objective design standards for multi- family and mixed-use projects. This effort will address development standards, the review process, and the design related findings for approval of housing developments in both the Zoning Ordinance and the Downtown Specific Plan. The purpose of these standards is to expedite the approval process to support the City in meeting its housing goals, while ensuring projects are attractive, well-designed, and provide adequate amenities and livability for residents. As part of this process, the City will engage with property owners and developers to ensure that standards will result in feasible projects that can achieve the densities assigned to various properties.

Units,
Efficient
Residential
Project
Processing
On June 3, 2025 the City Council
adopted the Objective Residential Design
Standards.

Objective
Residential Design
Standards | City of
Santa Maria
Program 3.C:

Conditional Use
Permits and
Planned
Development
Permits
The City will amend the Zoning
Ordinance related to CUP and PD
Permit applicability through the
Zoning Administrator process to
reduce approval time for
residential mixed -use and multi -
family as noted under Program

3.A (Residential Permit Process
Monitoring and Improvement) with
the aim expediting actions on
residential projects, and permitting
100 housing units without a PD
Permit approval by 2031.

2025 6th In progress To facilitate housing, the City will amend the Zoning Ordinance to reduce the reliance on Conditional Use Permits (CUPs) and Planned Development (PD) Permits for residential mixed- use and multi-family development. In conjunction with the
development of objective design standards (Program 3.B), the City will consolidate residential development allowed uses and definitions and reduce the CUP requirement for these uses in multi-family and mixed-use zoning districts (e.g., smaller housing developments would be approved by the Zoning
Administrator). Additionally, the City will modify the Planned Development Overlay District code provisions so that a PD Permit is not required for all residential mixed-use or multi-family development within the PD Overlay District. Rather, a PD Permit would only be necessary for a residential mixed-use or multi- family residential project if a modification to zoning standards is requested.

Units,
Efficient
Residential
Project
Processing
To ensure consistency with new General
Plan policies, Conditional Use Permit and
Planned Development Permit processing as
codified in the Zoning Ordinance will be
developed upon conclusion of the General
Plan Update and Adoption process in April
2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045
Program 3.D: SB
35 Process
SB 35 application form and
checklist and written policy or
project review and approval
guidelines created and published
on the City’s website.
2023 6th In Progress The City will develop an application form and checklist and written policy or project review and approval guidelines to specify the SB 35 (2017) streamlining approval process and standards for eligible projects as set forth under Government Code Section 65913.4 and consistent with HCD Updated Streamlined
Ministerial Approval Process Guidelines.

Other,
Efficient
SB35
Project
Processing
The City has received two SB35 project
applications and has determined each
qualifies for streamlined ministerial approval.

These determinations were made using
Government Code Section 65913.4. These
two examples to guide the creation of an
application form and checklist.

Program 3.E:

Parking
Standards
Revised parking standards and
additional incentives adopted.

Increase the stock of smaller units
(e.g., studios, one-bedroom units,
etc.) within Santa Maria above the
existing 856 studio and 2,956 one-
bedroom units (see Housing
Needs Assessment (Appendix A),
Table A-10) during the 2023-2031
planning period.

2024 6th In Progress The City currently offers parking reductions and flexibility for residential projects such as reduced requirements in the Downtown Specific Plan area with additional reductions based on project location within the Specific Plan, for residential mixed- use projects, and through the Planned Development Permit process. To reduce the impacts of parking requirements on the production of housing, the City will assess and update parking standards to establish lower rates for studios and one-bedroom units and review implementation of other proven strategies (e.g., expanding shared parking) to reduce the burden of parking on residential development.

Units To ensure consistency with new General
Plan policies, Zoning Ordinance Parking
Requirements will be developed upon
conclusion of the General Plan Update and
Adoption process in April 2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

III - 11

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 3.F:

R-2 and R-3
Zoning District
Densities and
Development
Standards
Higher allowed densities adopted
into Zoning Ordinance. Also see
Program 3.B, 3.C and 3.E.
2025 6th In Progress The City will increase the allowed densities in the R-2 and R-3 zoning districts (or introduce a new residential zoning district) to allow higher density projects. To support increased densities, staff will evaluate site development requirements to ensure the additional density may be accommodated, including but not limited to building height, setbacks, and parking requirements.

The density increase will be initiated through the General Plan Update Land Use Element with the amendment of the High
Density and Medium Density residential land use classifications to support additional density. The General Plan Update is currently underway, with adoption anticipated in 2025. The densities permitted in the High and Medium Density Zone designations (Santa Maria Municipal Code Title 12) will subsequently be amended for consistency with the Land Use Element after the updated General Plan has been adopted. As part of the zoning code update, development standards will be established or modified as appropriate to facilitate achieving maximum densities. The Title 12 Zoning Ordinance amendment will be a public hearing process, involving Planning
Commission’s recommendation, and City Council adoption.

Units To ensure consistency with new General
Plan policies, the Densities of residential
zones will be developed upon conclusion of
the General Plan Update and Adoption
process in April 2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
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Program 4.A:

Accommodation
s for Seniors and
Persons with
Disabilities
The City will continue to accept
reasonable accommodation
requests and approve three
requests by 2031. If two requests
have not been received by 2027,
the City will expand outreach
efforts, including further
collaboration with CAPSLO, Inc.
to better increase awareness of
available funding for reasonable
accommodation improvements
(see Program 2.A).
2024 6th Continuous The City strives to address the housing, health care, accessibility and service needs of special needs populations such as the elderly, and persons with disabilities. The City continues to comply with the Federal Fair Housing Act and the California Fair Employment and Housing Act by providing reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommodations are necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The City will continue to inform residents on the process and requirements to obtain a reasonable accommodation request (Zoning Ordinance Chapter 12-50).

Persons The Community Programs Division, in
partnership with the Legal Aid Foundation of
Santa Barbara County, hosted a tenant’s
rights workshop for Mixtec
speakers on January 29, 2025, and on April
23, 2025, a housing rights clinic to address
Fair Housing issues/concerns.

City of Santa
Maria, CA

REASONABLE

ACCOMMODATI
ON

Program 4.B:

Supportive
Housing for
Homeless
Persons
The City will continue to strive to
allocate CDBG funding to public
service agencies and non-profits
providing emergency shelter and
services.
2031 6th Continuous The City supports the development and preservation of housing for unhoused individuals through the allocation of funds to public service agencies and nonprofits providing emergency shelter and support services to the homeless. Such services consist of counseling, case management, health care, and transportation.

The Non-Profit Facilities Program is available to these agencies for capital development activities, and specifically assists in the development of housing affordable to extremely low-income households.

Persons The City continues to allocate CDBG and
HOME funded resources to non-profit
agencies providing emergency shelter and
services.

Community
Development
Block Grant
(CDBG) Program |
City of Santa
Maria

Annual Action
Plan 2025-26
Program 4.C:

Zoning for Low
Barrier
Navigation
Centers and
Emergency
Shelters
The City will amend its Zoning
Ordinance to explicitly allow
LBNCs to be permitted as
provided by State law.
2026 6th Not yet started The City’s Zoning Ordinance does not currently address low barrier navigation centers (LBNCs), defined as Housing First, low-barrier, service enriched shelters focused on moving people into permanent housing that provide temporary living facilities while case managers connect individuals experiencing
homelessness to income, public benefits, health services, shelter, and housing (Government Code Section 65660). State law requires LBNCs to be permitted by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses provided they satisfying the provisions established by AB 101 (see Government Code Section 65662). Additionally, the City will amend emergency shelter parking standards to only require parking for emergency shelter staff and update the definition of emergency shelters to comply with Government Code Section 65583(a)(4), as amended by AB 2339.

Persons To ensure consistency with new General
Plan policies, the Zoning Ordinance Title 12
will be amended to allow LBNCs to be
permitted as specified by State law upon
conclusion of the General Plan Update and
Adoption process in April 2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

III - 12

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 4.D:

Zoning for
Transitional and
Supportive
Housing
The City will amend its Zoning
Ordinance to clarify which zones
permit transitional and supportive
housing as a residential use of
property consistent with State
law.
2026 6th Not yet started The City’s Zoning Ordinance allows transitional and supportive housing consistent with State law. For clarity, the City will list these uses as allowed uses in the appropriate zones.

Transitional housing provides temporary housing for a period of six months to two years, with a focus on moving people into permanent housing (Government Code Section 65582).

Supportive housing has no limit on length of stay and is linked to an on-site or off-site service that assists residents in retaining housing, improving their health, and maximizing their ability to live and work in the community (Health and Safety Code Section 50675.14). AB 2162 requires that transitional and supportive housing be permitted by-right in areas zoned for residential uses.

Units,
Persons
The City will amended the Zoning Ordinance
to list transitional and supportive housing as
permitted uses in the appropriate City zones.

To ensure consistency with the General Plan
update, the amendment will occur after the
conclusion of the General Plan Adoption in
April 2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

Program 4.E:

Zoning for
Employee
Housing
The City will amend the Zoning
Ordinance to allow employee
housing consistent with State law.
2026 6th Not yet started The City will amend its Zoning Ordinance to specify that employee housing for six or fewer employees is considered a single-family structure in the City’s residential land use designations, consistent with Health and Safety Code Section 17021.5. Similarly, the Zoning Ordinance shall be amended per the provisions of Section 17021.6 for employee housing in agricultural land use zones. Lastly, the Zoning Ordinance shall allow eligible agricultural employee housing developments to be subject to a streamlined, ministerial approval process and objective development standards if located on land designated as agricultural in compliance with Section 17021.8. These amendments shall be completed prior to expiration of the Voluntary Compliance Agreement with HUD.

Units,
Persons
The City will amended the Zoning Ordinance
to allow employee housing consistent with
State law. To ensure consistency with the
General Plan update, the amendment will
occur after the conclusion of the General
Plan Adoption in April 2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

Program 4.F:

Zoning for
Residential Care
Facilities
The City will amend its Zoning
Ordinance to facilitate residential
care facilities consistent with
State law.
2025 6th In Progress The City currently permits residential care facilities for six or fewer persons in all residential zoning districts, as well as districts where single-family homes are allowed by-right and treats them as a residential use. For clarity, the Zoning Ordinance will be amended to specifically list residential care facilities (6 or fewer persons) as a permitted use. The Zoning Ordinance will also be amended to establish objective standards for large residential care facilities (more than six persons) so that those large residential care facilities meeting those standards may be approved without discretionary review (i.e., subject only to objective standards) in all residential zoning districts and similar to other residential uses of the same form in those districts.

Persons To ensure consistency with new General
Plan policies, the Zoning Ordinance Title 12
will be amended to allow Residential Care
Facilities as specified by State law upon
conclusion of the General Plan Update and
Adoption process in April 2026.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

Program 4.G:

Zoning for Child
Family Care
Homes
The City will amend its Zoning
Ordinance to facilitate child family
care homes consistent with State
law.
2025 6th In Progress The City currently permits large and small family day care homes in all residential zoning districts. For clarity, the Zoning Ordinance will be amended to be consistent with the latest regulations and terminology found in the California Code of Regulations, Title 22, Division 12.

Persons The City will amend the Zoning Ordinance to
bring City child family care home provisions
into consistency with State law. The
amendment will occur after the conclusion of
the General Plan Adoption in April 2026 to
ensure consistency between the Zoning
Code and General Plan Policies.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

III - 13

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 4.H:

Housing for
Extremely Low-
Income
Households
Approve 50 new units for special
needs populations, and 50 new
extremely low-income housing
units by 2031.
2031 6th In Progress Assist in the development or redevelopment of one or more properties for housing for those with special needs, including housing affordable to extremely low-income households. Specific actions the City will undertake to pursue this effort include:
• Conduct outreach to and coordinate with non -profit housing developers to facilitate housing for special needs populations, including hou sing affordable to extremely low - income households through discussions regarding potential
incentives, programs, financial support, etc. (see also Program 1.A);
• Direct outreach to religious institution property owners or operators to inform them about AB 1851 and any other
regulations that encourage housing development on these properties (see also Program 1.H);
• Actively assist and support developers with funding
applications to support the development of housing for special needs populations, including extremely low-income housing; • Grant incentives and concessions to housing developments that include units for any special needs populations, and housing units affordable to extremely low-income households (e.g., State density bonus law provisions; see also P rogram

1.B).

Outreach efforts for this program will cross-over with efforts and objectives of the other Special Needs programs of this section with the aim to increase housing for all special needs
populations.

Households The City continues to support methods to
assist in the development of affordable
housing for those with special needs and
those who are extremely low-income.
2025 ADU rent survey results indicates
approximately 25.8% (86 units) of the ADU’s
receiving final occupancy in 2025 were
affordable to Extremely Low or Acutely Low-
income households.

Annual Action
Plan 2025-26

See Table A2,
Column 10.

III - 14

Program 4.I:

Support for
Farmworkers
Approve 50 new farmworker
housing units by 2031.
2031 6th Continuous Proactive engagement with farmworkers and community -based organizations which advocate for their needs is essential to ensuring farmworker access to housing which is affordable, safe, and promotes good health. The City will continue to coordinate with public, private, and non -profit organizations, such as the Central Coast Alliance United for a Sustainable Economy (CAUSE) , the Mixteco Indigenous Community Organizing Project (MICOP), the California Farmworker Foundation (CFF), Santa Barbara County Promotores Network, the Grower -Shipper
Association of Santa Barbara and San Luis Obispo Counties, and others to address the persistent housing issues farmworkers face, including overcrowding, substandard housing, tenant protections, and language barriers. The City will support these organizations in obtaining funding for new housing or rehabilitation of existing farmworker housing units, such as through the U.S. Department of Agriculture (USDA) Housing Programs, the Joe Serna, Jr.

Farmworker Housing Grant (FWHG) Program, or the California Department of Community Services & Development Programs Low- Income Weatherization Program (LIWP).

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

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

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

Although not counted as units under RHNA, many former motels within the City have been improved and used to house seasonal farmworkers, which current US Department of Agriculture data indicate comprise approximately 43 percent of the Santa Barbara Couty total farmworker population.

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

Households The draft General Plan Update Health and
Environmental Justice Element proposes
new policies, each with action items, to
support all types of housing including
housing for farm workers and special needs
groups including:
• HEJ-2.1: Implement the Housing Element
• HEJ2.2: Advance Housing Rehabilitation
• HEJ-2.3: Bolster housing diversity
• HEJ-2.4: Support multi-generational
housing
Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

III - 15

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents

Program 5.A:

Homebuyer
Assistance
Program
The City will seek to increase
funding of homebuyer assistance
programs through grant
applications with a goal of at least
10 households assisted by 2031.
2031 6th Continuous The City will support and promote available homebuyer programs (e.g., the Housing Trust Fund of Santa Barbara County’s Workforce Homebuyer Program) and seek funding to assist residents with buying a home through first-time
homebuyer down payment programs. Programs may provide
pre-purchase counseling, deferred payment down payment
loans, and closing cost grants to households.

Households Permanent Local Housing Allocation (PLHA)
funding comes to counties and cities in
California from Senate Bill 2 (SB2), also
known as the Building Homes and Jobs Act
Fee. SB2 established a $75 recording fee on
real estate documents to increase the supply
of affordable housing in California. Partial
funding coming to the County’s consortium
(which the city is part of) from the State’s
PLHA grant will be set aside and used
towards the Workforce Homebuyer Program.

In addition, the City continues to seek
various forms of grant funding to provide
appropriate housing.

Annual Action
Plan 2025-26
Program 5.B:

Tenant-Based
Assistance
Since Housing Choice vouchers
are portable, the number of
vouchers used in Santa Maria will
vary over time, but the City will
seek to increase the current level
of 1,736 households located in
the City (including Orcutt)
participating in the Section 8
program by 10 percent to 1,910
households. If Section 8
households are not on track with
the target by 2027 (i.e., 1,823
voucher households in 2027), the
City will work with the Housing
Authority of the County of Santa
Barbara to facilitate increased
voucher use within Santa Maria
through outreach or other
mutually agreed upon strategies.
2027 6th Continuous The Housing Choice (Section 8) Rental Assistance Program is administered by the Housing Authority of the County of Santa Barbara. This program assists very low-income, elderly, and disabled households by paying the difference between 30 percent of an eligible household's income and the actual rental cost. The City will continue to promote the participation of eligible Santa Maria residents in the County-administered Housing Choice Rental Assistance Program.

Households The City continues to support methods to
assist families in overcoming housing
obstacles.

Housing Authority
of the County of
Santa Barbara

Housing Authority
Housing Choice
Voucher
Program 5.C:

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

2031 6th Continuous The City supports programs that assist residents with rental payments, based on availability, such as the City’s Tenant Based Rental Assistance (TBRA) Program, which provides
security deposit assistance through a Qualified Referring Agency (QRA) to qualified low-income households. Santa Maria is a member of the Santa Barbara County's HOME Consortium and currently is using part of its HOME funds to help with rental deposits within the City limits.

Households Forty-eight households received rental
assistance in 2025.

The City continues to support methods to
assist families in overcoming housing
obstacles, including rental deposit
assistance. The City estimates helping 60
households annually with $150,000 from the
HOME Investment Partnership Grant
Program. The assistance is provided in the
form of a grant for up to 100 percent ($2,500
maximum) of the required security deposit to
low-income families to assist with
overcoming obstacles to obtaining housing.

Eligible participants are individuals whose
income is at 60 percent or below the area
median income by household size as
determined by HUD. The program is funded
with HOME and CDBG funds.

Tenant Based
Rental Assistance
(TBRA)* / HOME
Program | City of
Santa Maria

Annual Action
Plan 2025-26

III - 16

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 5.D:

Fair Housing
Program
The City will track awareness of
fair housing services and
increase awareness of such
services over the planning period,
adjusting outreach methods
based on community input (first
survey 2025 and every three
years following).
2024 6th Completed,
Continuous
The City is committed to supporting Fair Housing programs for residents. The housing programs sponsored by the City promote housing opportunities for all persons within the community. The Legal Aid Foundation of Santa Barbara Cou nty, under contract with the City, conducts fair housing activities, and the City’s Community Programs Division administers the production and distribution of Fair Housing information throughout the City.

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

Households The City maintains its support for Fair
Housing Programs, particularly those which
focus on Extremely Low-Income Households.

Fair Housing | City
of Santa Maria

Human Services
Guide English

Human Services
Guide Spanish
Program 5.E:

Tenants Rights
Information
The City will continue to inform its
residents on fair housing rights and
resources with a focus on reaching
at-risk households and will partner
with local organizations and
groups to be more effective. Our
goal is to educate over 200
households through 2031 (i.e., 100
households by 2027).

2031 6th Continuous The City will continue to effectively communicate information regarding local and regional tenants’ rights resources, as well as other relevant resources, in a user-friendly manner. The City will better inform residents, especially those who are harder to reach and potentially at-risk of displacement, through avenues such as the City website, flyers, or brochures in public buildings, and on social media. Information will be multilingual, and the City will coordinate with organizations and local groups to ensure the effective distribution of information community-wide, including to the Mixteco community who relies more on spoken
communication.

Households The City maintains its support of tenants’
rights and informs the public by teaming up
with the local non-profit, Legal Aid
Foundation of Santa Barbara County and
other organizations that have a good
relationship with the public. The City offers
several tenants; rights workshops annually
and are offered in several languages,
including English, Spanish, and Mixtec.

Rental Housing
Mediation
Program | City of
Santa Barbara

Human Services
Guide English

Human Services
Guide Spanish
Program 5.F:

Environmental
Issue
Identification
and Action
Develop and implement actions
to address environmental health
issues most effectively in the
lowest resource areas. Also see
Program 5.G.
2031 6th In Progress The City will conduct outreach and gather information on environmental and health factors most acutely impacting residents in areas of Santa Maria with the lowest
CalEnviroScreen and California Tax Credit Allocation Committee (TCAC) scores (Appendix F, Figures F -13, F-16, and F-32). The City will develop an action plan to address the identified issues, including prioritization, timeframe for implementation, responsible party(ies), and funding sources. Specific City actions include the following or alternative equivalent measures:
• Continue to regularly and efficiently issue permits related to abandoned oil well closures and hazardous waste clean ups (see Appendix C, Section C.4.1);
• Conduct outreach to property owners to facilitate
understanding and awareness of oil w ell closures and
hazardous waste clean-up resources;
As part of Program 4.I (Support for Farmworkers), identify environmental risks to farmworkers in the home that the City could seek funding and/or take action to improve
Persons The draft General Plan Update includes a
new Health and Environmental Justice
Element, analyzing existing conditions and
trends, key issues and
opportunities, identifying Disadvantaged
Communities and
the City’s proposed goals, policies, and
implementation actions. These include:
• reducing pollution; promoting safe and
affordable housing;
• access to healthy food, active
transportation, public facilities, and
healthcare facilities;
• and fostering greater civic engagement
opportunities.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

III - 17

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 5.G:

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

5.I (Capital Improvements in Low-
Income Areas).
2025 6th Continuous The City is committed to avoiding the concentration of high- impact or hazardous uses and facilities that disproportionately affects any community, and the City will strive to locate amenities, services, public facilities, and improvements equitably. The City will incorporate Environmental Justice goals, policies, and objectives as part of the comprehensive General Plan Update, which is currently underway. The Environmental Justice provisions of the draft update will first be made available for public review and comment. The Environmental Justice goals, policies, and objectives will be considered in subsequent public hearings before the Planning Commission and City Council, with adoption by of the new General Plan anticipated in 2025.

Households The draft General Plan Update includes a
new Health and Environmental Justice
Element identifies 19 census tracts and 3
block groups as Disadvantaged Communities
within the City. The EJ Element includes
goals, policies, and implementation actions
to address EJ issues.

Information on the
General Plan
Update may be
found here: Home
| Santa Maria
GPU 2045

Program 5.H:

Condominium
Conversions
Preserve existing rental stock
from being converted to
condominiums throughout the
planning period.
2026 6th Not yet started Condominium conversions can raise the cost of housing and remove affordable multi-family rental housing off the market. The City currently requires for any condominium conversion project a report filed with the City as detailed in Section 12-46.06 (Reports Required for Conversion) and a planned development or
conditional use permit approval.

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

Households The City has not received any Condominium
Conversion Proposals within the Sixth Cycle.

III - 18

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 5.I:

Capital
Improvements in
Low-Income
Areas
Continue to identify and fund
multiple capital projects in each
two-year budget cycle, including
through the application of
Program 1.J.

Achieve over three million
invested in projects completed in
low-income areas by July 2026.

Subject to the availability of
applicable grants, apply for four
grants for improvement projects
for lower income areas of the City
during the planning period.
2026 6th Continuous The City will complete projects to improve conditions in areas with higher concentrations of low- income households. Projects in and around the Downtown area include the Downtown Streetscape Catalyst Project, Chapel Plaza Renovation Project, and Veterans Memorial Park Renovation Project. These projects will create pedestrian enhancements, new cultural and recreational
amenities including walking trails and playground equipment, additional trees and landscaping, signage, and security lighting.

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

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

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

Units In October 2025 the City approved just
under $600 thousand for an ADA Self
Evaluation and Transition Plan Update to
assess City-owned facilities, parks,
sidewalks, and public rights-of-way; review of
policies and procedures; conduct community
engagement; and for the preparation of an
updated ADA Transition Plan for barrier
removal.

The Chapel Plaza project (over One Million
Two Hundred Twenty Thousand dollars) is
now complete, providing a recreation and
community gathering space in the
Downtown.

The City was granted over two million four
hundred and eighty thousand dollars of
REAP grant funding to increase sewer
capacity and construct multi-modal
improvements in the downtown.

In 2025 the City awarded contracts for phase
II of the Veterans Memorial Park new
pedestrian plaza and event space (over eight
hundred thousand dollars)
Council Agenda
Item ADA
Services 12.d.6

REAP Grant
Council Agenda
Item 11.e.1

Veterans Mem
Park Council
Agenda Item

10.d.1

III - 19

Name of
Program
Objective Projected
Completion
Date in
Housing
Element
Applicable
Cycle
Status of
Program
Implementation
Program Implementation Details Quantified
Outcomes:

Category
Quantified Outcomes: Count Supporting
Documents
Program 5.J:

Housing Mobility
Provide 300 housing
opportunities affordable to lower
income households by February
2031.
2031 6th Complete,
Continuous
Housing mobility strategies consist of removing barriers to housing in areas of opportunity and strategically enhancing access (Santa Maria is mostly low resource but has moderate resource ar eas in the northeast and southeast, see Housing Element Figure F-13). To improve housing mobility and promote more housing choices and affordability in the moderate resource areas, including in lower -density neighborhoods, the City will employ a suite of a ctions to expand housing opportunities affordable to extremely low, very low, low, and moderate income households. Actions and strategies include:
• Accessory Dwelling Units (ADUs) – Promote ADUs in single- family neighborhoods through outreach and providing
information on technical and/or available financial assistance.

See Program 1.D.
• Religious Institutional Sites – Encourage housing on religious institutional sites within the City through outreach and facilitating housing applications. See Program 1.H.
• Facilitate Lower and Mixed -Income Projects in Higher Resource Areas – The City will facilitate the approval and permitting of lower and mixed -income projects in moderate resource areas (see Figure F -31) with the goal of 250 lower income units constructed in these areas by 2031.

Units During the Sixth Cycle, the City continues to
promote housing choice by permitting 1,832
Lower Income units, including ADU’s, and
deed-restricted and non-deed units
throughout the community to date.

Over 110 ADUs affordable to lower income
households have been constructed in
moderate resource areas to date.

III - 20

Table E – Commercial Development Bonus Approved
Section 65915.7 of the Government Code allows commercial projects to request reductions in parking requirements, increased building height and/or increased floor area when that project contributes to the development of affordable housing in the jurisdiction. The City did not receive any requests under Government Code Se ction 65915.7 during 2025; therefore, the completion of this table is not necessary.

Table F – Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c)(2)
Jurisdictions are asked to use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved consistent with the standards set forth in Government Code section 65583.1, subdivision (c)(2 ). The affordable housing work completed by the City in 2025 did not include any of these activities ; therefore, the completion of this table is not necessary.

Table F 2 – Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2
Jurisdictions are asked to use this table to report units in an existing multifamily building that were converted to deed -restricted rental housing for moderate -income households by the imposition of affordability covenants and restrictions for the unit. In 2025 the City did not receive any applications for conversion of existing units to deed-restricted units.

Table G – Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of, pursuant to Government Code section 65400.1 State Law requires local agencies to list sites owned by the locality that were included in the housing element sites inventory and were sold, leased, or otherwise disposed of during the reporting year. The City did not sell any land identified as a Housing Element available site in 20 24; therefore, the completion of this table is not necessary.

Table H – Locally Owned or Controlled Lands Declared Surplus Pursuant to Government Code section 54221, or identified as Excess Pursuant to Government Code section 50569 State Law requires local agencies to create an inventory of surplus lands it owns or controls. “Surplus land” means land owned by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use. The City did not declare any property as surplus land in 2025.

Table J – Student housing development with a density bonus approved pursuant to Government Code section 65915 (b) (1) (F)
State law requires that student housing development that received a density bonus be reported in the APR. The City did not receive application for, or process any student housing development in 2 025; therefore, the completion of this table is not necessary.

III - 21

Table K – Tenant Preference Policy Pursuant to Government Code section 7061 State law requires that local governments inform HCD about any local tenant preference ordinance the local government adopts or maintains, including the requirements the City create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational. The City does not currently have a local tenant preference ordinance.

Table L – Historical Resources
Pursuant to Government Code section 65400(a)(2)
Chapter 723, Statutes of 2024 (AB 2580) amended Government Code section 65400(a)(2) requires that local governments inform HCD of all historic designations listed on the National Register of Historic Places, the California Register of Historic Resources, or a local register of historic places by the city or county in the past year, and the status of any housing development projects proposed for the new historic designations. No new historic designations took place in the City during 2025, therefore the completion of this table is not necessary.

Local Early Action Planning (LEAP) Grant Reporting
Recipient Agencies of Local Early Action Planning (LEAP) grants shall annually report by April 1 of the year following receipt of those funds on the status of proposed uses in the application.

The City has
received the full LEAP grant fund ($500,000) reimbursement awarded for the General Plan Update and associated Environmental Impact Report, and th e Sixth Cycle Housing Element Update. The Sixth Cycle Housing Element is adopted and serves to facilitate the development of new housing in the City.

Work on the General Plan Update and EIR continue, with adoption anticipated in April 2026.

III - 22

Summary Table:

Jurisdiction Santa Maria
Reporting Year 2025 (Jan. 1 - Dec. 31)
Housing Element Planning Period 6th Cycle 02/15/2023 - 02/15/2031

Building Permits Issued by Affordability Summary
Income Level Current Year
Acutely Low
Deed
Restricted 0
Non-Deed
Restricted 125
Extremely Low
Deed
Restricted 0
Non-Deed
Restricted 0
Very Low
Deed
Restricted 0
Non-Deed
Restricted 15
Low
Deed
Restricted 0
Non-Deed
Restricted 339
Moderate
Deed
Restricted 0
Non-Deed
Restricted 0
Above Moderate

451
Total Units 930

Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 0 2
Single-family Detached 0 5 16
2 to 4 units per structure 0 21 11
5+ units per structure 150 424 529
Accessory Dwelling Unit 0 479 327
Mobile/Manufactured Home 0 1 1
Total 150 930 886

Infill Housing Developments and Infill Units Permitted # of Projects Units Indicated as Infill 783 1965
Not Indicated as Infill 0 0

III - 23

Housing Applications Summary
Total Housing Applications Submitted: 633
Number of Proposed Units in All Applications Received: 896 Total Housing Units Approved: 246
Total Housing Units Disapproved: 0
Use of SB 423 Streamlining Provisions - Applications
Number of SB 423 Streamlining Applications 0
Number of SB 423 Streamlining Applications Approved 0

Units Constructed - SB 423 Streamlining Permits
Income Rental Ownership Total
Acutely Low 0 0 0
Extremely Low 0 0 0
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0

Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 0 0
SB 9 (2021) - Residential Lot Split 0 0
AB 2011 (2022) 0 0
SB 6 (2022) 0 0
SB 423 (2023) 0 0

Ministerial and Discretionary Applications
# of
Applications Units
Ministerial 631 830
Discretionary 2 66

Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 1 Number of Units in Applications Submitted Requesting a Density Bonus 52 Number of Projects Permitted with a Density Bonus 0
Number of Units in Projects Permitted with a Density Bonus 0

Housing Element Programs Implemented and Sites
Rezoned

Count
Programs Implemented 36
Sites Rezoned to Accommodate the RHNA 0

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Dawn Jackson, Library Director

DATE: March 3, 2026

SUBJECT: Adoption of a Resolution Approving an Agreement with the County of Santa Barbara and the Cities of Lompoc, Goleta, Santa Barbara, and Carpinteria for the Operation of a Free Countywide Library System for Fiscal Year 2025-2026

Description:

The City Council will consider adopting a Resolution approving an Agreement with the County of Santa Barbara to provide for the operation of a Free Countywide Library System for Fiscal Year 2025-2026.

RECOMMENDATION:

1. Adopt a Resolution approving an Agreement with the County of Santa Barbara, the cities of Lompoc, Goleta, Santa Barbara, and Carpinteria to provide for the operation of a Free Countywide Library System for Fiscal Year 2025-2026; and

2. Authorize the City Manager , or designee, to execute agreement and to appropriate, release, and expend funds and issue warrants to comply with the terms of the agreement.

BACKGROUND:

Since 1962, the County of Santa Barbara (County) has contracted annually with the cities of Lompoc, Santa Barbara, and Santa Maria to provide free library service to the cities and unincorporated areas of Santa Barbara County. The cities of Goleta and Carpinteria have contracted with the County since the formation of their city libraries in 2018 and 2022, respectively. Library funding is a discretionary matter decided each year by the Board of Supervisors.

Each city library is responsible for a separate "zone." Santa Maria is designated as Zone 3 which includes the cities and unincorporated areas located within or in close proximity to Cuyama, Guadalupe, Los Alamos, and Orcutt. With County funds, which have been allocated historically on a per-capita basis, the Santa Maria Public Library operates four 2 branch libraries in Cuyama, Guadalupe, Los Alamos, and Orcutt. All County residents have free and equal access to all public libraries within the County.

Last year's Agreement for Fiscal Year (FY) 2024-2025 was brought to the City Council and approved on February 18, 2025.

DISCUSSION:

On December 16, 2025, the Board of Supervisors approved the Free Countywide Library System contract for FY 2025-2026. The per capita base allocation for FY 2025-2026 is $9.42 with additional funding allocated to County branches to mitigate a potential loss of open hours and programming reductions. The County contribution to library services in Zone 3 for FY 2025-2026 is based on a total population of 159,503. The fiscal year funding totals $1,756,300. This figure includes the additional allocation of $189,164 from cannabis funding, which provides an additional $18,408 for Cuyama , $30,249 for Guadalupe, $29,742 for Los Alamos, and $110,765 for Orcutt. Additionally, Orcutt will receive $55,000 in other County funding to be used for rent, and the Main Library will receive $8,900 from the small branch library fund to expand Bookmobile services to unincorporated locations within Zone 3, such as school visits and occasional stops that will not impact service to Santa Maria residents.

The term of the County agreement commenced on July 1, 2025, and continues until June 30, 2026.

The payments are to be made by the C ounty to cities in two installments: the first after execution of the Agreement by all parties, and no earlier than October 1, 202 5, but no later than February 1, 2026, and the second payment no earlier than March 1, 2026, but no later than April 1, 2026. Cities are to provide the County with an annual statement of receipts and disbursements no later than 60 days after the end of the fiscal year (Agreement Section 6D, Deposit of Allotment of Funds and Section 17, Reports of Receipts and Disbursements).

The County's Community Services Director is the designated representative for the County, and the city’s Chief Librarians are the designated representatives for each of their cities for the purpose of notices and correspondence (Agreement Section 1, Designated Representative and Section 22, Notices).

Alternative(s)
An alternative would be to decline the agreement and lose valuable funding to operate County branches.

Fiscal Considerations
Library Zone 3 (Santa Maria) will receive a total of $ 1,756,300. The City Main Library is allocated $1,098,939 or 63 percent of all County funds based on a population of 115,660 and small branch funding for the Bookmobile. The County branches will receive $657,361 calculated on a population estimate of 43,843 and cann abis funding allocated by the County Supervisors to cover projected deficits. County branch total budgets will be set 3 as follows: Cuyama $26,934, Guadalupe $112,349, Los Alamos $52,046, and Orcutt $466,032. These allocations are included in the FY 2025-26 Library budget.

Impact on the Community
The funds received under this Agreement are an important segment of the budget for the Main Library, as well as the County branches operated by the Santa Maria Public Library, located in Cuyama, Los Alamos, Guadalup e, and Orcutt. Renewal of this Agreement is essential to maintain funding for library programs and to continue providing library services to all Zone 3 libraries and surrounding communities.

ATTACHMENT(S)
A. Resolution Approving an Agreement for Operation of a Free Countywide Library System Fiscal Year 2025-2026
B. Agreement for Operation of a Free Countywide Library System Fiscal Year 202 5-2026 C. Santa Barbara County Library Zones Map

Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING AN AGREEMENT WITH THE COUNTY OF SANTA BARBARA,

THE CITIES OF LOMPOC, GOLETA, SANTA BARBARA,

AND CARPINTERIA TO PROVIDE FOR THE OPERATION OF A FREE COUNTYWIDE LIBRARY SYSTEM FOR FISCAL YEAR 2025-2026

WHEREAS, the City of Santa Maria has contracted with the County of Santa Barbara since 1962 to provide library service to the unincorporated areas of the County; and

WHEREAS, the City of Santa Maria is responsible for "Zone 3," which is comprised of County branch libraries in Cuyama, Los Alamos, Orcutt, and Guadalupe with funds provided by the County; and

WHEREAS, all County residents have free and equal access to all public libraries within the County; and

WHEREAS, the Fiscal Year 2025-2026 Agreement provides revenue and appropriations of $9.42 per capita and additional funding for branches based on projected deficits for a total of $1,756,300

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

SECTION 1. Approve Agreement with the County of Santa Barbara, the cities of Lompoc, Goleta, Santa Barbara , and Carpinteria to provide for the operation of a Countywide Free Library system, and all other agreements or documents required to effectuate the terms of the agreement.

SECTION 2. Authorize the City Manager, or designee, to execute the agreement and appropriate, release, and expend funds and issue warrants to comply with the terms of the agreement.

SECTION 3 . The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance with 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 3rd day of March 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney

APPROVED AS TO CONTENT:
_______________________________
Department Director

_______________________________
City Manager

FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 1 of 27 ends

AGREEMENT FOR OPERATION OF A FREE COUNTYWIDE LIBRARY
SYSTEM

THIS AGREEMENT FOR OPERATION OF A FREE COUNTYWIDE LIBRARY SYSTEM (“Agreement”) is hereby made by and among:

THE COUNTY OF SANTA BARBARA, a political subdivision of the State of California hereinafter, referred to as “County,”
CITY OF SANTA BARBARA, a municipal corporation, hereinafter referred to as “Santa Barbara,” and
CITY OF LOMPOC, a municipal corporation, hereinafter referred to as “Lompoc,” and CITY OF SANTA MARIA, a municipal corporation, hereinafter referred to as “Santa Maria,” and
CITY OF CARPINTERIA, a municipal corporation, hereinafter referred to as “Carpinteria,” and
CITY OF GOLETA, a municipal corporation, hereinafter referred to as “Goleta” (Santa Barbara, Carpinteria, Lompoc, Santa Maria, and Goleta hereinafter referred to collectively as the “Managing Cities” and each individually as a “Managing City”).

WITNESSETH THAT:

WHEREAS, the parties hereto desire to operate a Countywide network of library services that provide for all inhabitants of the County of Santa Barbara open access to diverse resources and ideas that inspire learning, promote reading and enhance community life; and WHEREAS, the parties hereto desire to contract for the furnishing to all inhabitants of the County, including residents within cities, an equitable level of Countywide library services; and WHEREAS, the parties hereto recognize that, because library users cross jurisdictional boundaries, a Countywide network of library services best serves the needs of all users; and WHEREAS, the parties hereto believe such services can be most efficiently provided through the use of existing facilities within and outside of the five Managing Cities without the creation of County-operated duplicate establishments; and Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 Attachment B
FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 2 of 27 ends

WHEREAS, the parties hereto believe the fairest method of equalizing County funding for library services is for the County to contribute to the Managing Cities a given and equal amount of money for each person residing within their respective zones, with additional funds allocated annually for County branch libraries as hereinafter provided; and WHEREAS, the parties hereto desire to memorialize herein their agreement that the sums hereinafter specified will be sufficient contribution by the County during the term of this Agreement; and
WHEREAS, each Managing City, with the exception of Santa Barbara, is a member of the Black Gold cooperative library system, a service agency established by the authorization of the Public Library Development Act of 1963, since such membership is extended to the incorporated as well as the unincorporated areas of the County; and
WHEREAS, it is the intent of the parties hereto to use reliable local public revenue to fund core library services; federal, state and philanthropic money, if available, shall be used to supplement, but not supplant, local revenues appropriated for public libraries; and WHEREAS, in order to maintain service levels, funding from the County, Managing Cities and other jurisdictions should include annual increases according to an accepted regional consumer price index; and
WHEREAS, the parties hereto desire to work together and with other jurisdictions to increase funding and service levels for the Countywide network of library services.

NOW, THEREFORE, the parties hereto agree as follows:

1. Designated Representative
County’s Community Services Department (“CSD”) Director is the designated representative of County, and will administer this Agreement for and on behalf of County. Each of the Managing Cities’ respective Library Directors is the designated representative for such Managing City. Each party hereto shall notify each of the other parties hereto in the event of a change of such party’s designated representative.

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 3 of 27 ends

2. Services to be Rendered
A map of Santa Barbara County Library Zones (“Zones,” and each a “Zone”) is attached hereto as Exhibit A and incorporated herein by reference (“Zone Map”). Each Managing City shall assume and provide the services of a public library for the Zone assigned to such Managing City hereunder, including, but not limited to, within the incorporated cities within such Zone, as described in greater detail in Section 5, below. The Library Director for each Managing City shall plan and administer a consolidated library program in the incorporated and unincorporated areas of the such Managing City’s Zone.

All materials purchased by a jurisdiction within the County of Santa Barbara shall be available to all residents within the County of Santa Barbara via a direct loan or interlibrary loan, without charge. Each Managing City is encouraged to build collections that reflect community needs and wants within its assigned Zone, and may set restrictions on interlibrary loans of certain materials such as new titles and high demand items (for a period up to six (6) months), reference materials, and rotating or rental collections.

3. Term
The term of this Agreement shall be for the Fiscal Year 2025-2026, commencing on July 1, 2025, and terminating on June 30, 2026 (“Term”), unless earlier terminated in accordance with the provisions of this Agreement.

4. Termination by County or Withdrawal by Cities
At any time during the Term of this Agreement, County may, upon six-months’ prior written notice to each of the Managing Cities, terminate this Agreement. At any time during the Term of this Agreement, each Managing City may, upon six-months’ prior written notice to County and each of the other Managing Cities, withdraw from and cease to be a party to this Agreement. If any Managing City withdraws from this Agreement, then such Managing City shall repay to the County funds previously distributed to that Managing City hereunder on a pro rata basis with respect to the number of days remaining in the Term after such withdrawal becomes effective.

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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5. Library Zones
Each Managing City shall have the primary obligation to provide library services within the Zone assigned to such Managing City, as described in greater detail below. a. Santa Barbara shall furnish library services to all persons inhabiting Zone 1, including the City of Santa Barbara, and the unincorporated areas of Montecito, Summerland, and Mission Canyon.
b. Lompoc shall furnish library services to all persons inhabiting Zone 2, including the City of Lompoc, and the unincorporated areas of the communities of Mission Hills, Vandenberg Village, and all of Vandenberg Space Force Base. c. Santa Maria shall furnish library services to all persons inhabiting Zone 3, including the Cities of Guadalupe and Santa Maria, and the unincorporated areas of the communities of Cuyama, Los Alamos, and Orcutt.
d. Goleta shall furnish library services to all persons inhabiting Zone 4, including the Cities of Goleta, Solvang, and Buellton, and the unincorporated areas of the communities of the Eastern Goleta Valley, Community Service Area 3 (CSA 3), Isla Vista, Gaviota, Hope Ranch, Los Olivos, and Santa Ynez.
e. Carpinteria shall furnish library services to all persons inhabiting Zone 5, including the City of Carpinteria and the unincorporated area of Toro Canyon. f. Subject to County’s contribution as set forth in Section 6.a, below, no Managing City may change the level of service (i.e., hours of operations or staffing) provided at County library branches (defined below) within such Managing City’s Zone (“Service Level Change”) without first complying with the provisions of this Section 5.f. the CSD Director or his or her designee (“CSD Director”). Any changes to the level of service must also be presented to the Library Advisory Committee for input. Each Managing City must provide written notice of each proposed or pending Service Level Change to the CSD Director and the Library Advisory Committee at least 90 days prior to implementation of such Service Level Change. Following receipt of such Service Level Change notice, the CSD Director will schedule a time for such Managing City to present such proposed Service Level Change to, and consult with, the Library Advisory Committee regarding same. The CSD Director or his or her designee will consult with such Managing City’s Library Director within 30 days of the CSD Director’s receipt of such Service Level Change notice. Such Managing City and its Library Director shall duly take into Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 5 of 27 ends

consideration input from the CSD Director and the Library Advisory Committee regarding such proposed Service Level Change. “County library branches” include: County/City branch libraries within the Cities of Buellton, Solvang, and Guadalupe, referred to in this agreement as a “partner city” or “partner cities,” as well as County branch libraries in the unincorporated areas of Montecito, Vandenberg Village, Orcutt, Los Alamos, and Cuyama.

6. Deposit and Allotment of Funds
Contribution for FY 2025/26:
a. County agrees to contribute $5,147,814 in Fiscal Year 2024/25 (“County Contribution”), which sum includes (i) $4,213,995 for library services (a per capita level of support of approximately $9.42), to be used for operations and acquisition of books and materials for inhabitants of the County of Santa Barbara, and (ii) $627,419 allocated to mitigate hours and programming reductions of County library branches at risk of reducing service levels. For the purpose of allocating the County Contribution among the Managing Cities for the 2025/2026 Fiscal Year, the parties hereto agree that the population count in each of the Zones, as determined in accordance with subpart 6.b, below, is as follows:

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Table 1:

b. Subject to County budgetary appropriations and availability of funds, the portion of the County Contribution to be allocated and paid to each Managing City shall be based on: population figures certified for January 1 of the immediately preceding fiscal year, and published in June of that year, as shown in the California State Library (Certification of Population Figures), but one year in arrears (e.g., FY 25/26 population based upon June 1, 2024 data). Notwithstanding the foregoing, in no event shall the amount paid to a Managing City hereunder exceed the amount set forth in the “FY 25/26 Total County Funding by Zone” column for such Managing City in Table 1, above.

Library Branch FY 25-26 Population Estimates FY 25-26 $9.42 Base - Per Capita (incl. CPI)FY 25-26Cannabis/GFC FundingFY 25-26Small Library FundFY 25-26Other County FundingFY 25-26 Total County Funding by ZoneSanta Barbara/Eastside91,294 860,401 - - - 860,401 Montecito 9,321 87,845 230,294 50,000 15,000 383,139 Zone 1100,615 948,246 230,294 50,000 15,000 1,243,540 Lompoc48,946 461,288 - - - 461,288 Vandenberg Village 10,454 98,527 40,033 15,000 - 153,560 Zone 259,400 559,815 40,033 15,000 - 614,848 Santa Maria115,660 1,090,039 - 8,900 - 1,098,939 Cuyama 905 8,526 18,408 - - 26,934 Guadalupe 8,711 82,100 30,249 - - 112,349 Los Alamos 2,367 22,304 29,742 - - 52,046 Orcutt 31,860 300,267 110,765 - 55,000 466,032 Zone 3159,503 1,503,236 189,164 8,900 55,000 1,756,300 Goleta65,078 613,328 - - 130,000 743,328 Isla Vista 25,630 241,550 - 12,500 - 254,050 Buellton 10,212 96,238 71,777 - - 168,015 Solvang 10,212 96,238 96,151 - - 192,389 Zone 4111,131 1,047,354 167,928 12,500 130,000 1,357,782 Carpinteria16,483 155,344 - - - 155,344 Zone 516,483 155,344 - - - 155,344 General- - - - 20,000 20,000 Total 447,132 4,213,995 627,419 86,400 220,000 5,147,814 Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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c. Although the parties hereto acknowledge that Goleta may, in addition to the funds provided hereunder, receive other funds during the Term from County Service Area Number Three (“CSA No. 3”), established in 1990 by Measure L to fund the Goleta Valley Library via parcel tax assessment (“Measure L Funds”), this Agreement does not create, and shall not be construed as creating or giving rise to any duty, responsibility, obligation, promise, or liability on the part of the County with respect to the provision of Measure L Funds to Goleta or CSA No. 3. Goleta covenants and agrees that and Measure L Funds received by Goleta shall only be used for extended library facilities and services in CSA No. 3, d. Except as otherwise provided herein, the payments to be made by County to each Managing City hereunder shall be made in two installments: the first after execution of this Agreement by such Managing City, no earlier than October 1, 2025, but no later than February 1, 2026, and the second payment no earlier than March 1, 2026, but no later than April 1, 2026; provided, however, that payment to a Managing City hereunder shall be conditioned on such Managing City’s compliance with the reporting requirements hereunder.
e. In the event that any of the funds allocated to a library hereunder are not expended during the Term, such unspent funds shall be retained by the Managing City that is assigned hereunder to the Zone in which such library is located for use after the Term for library services at such library branch.
f. No funds paid by County to any Managing City hereunder shall be used for purposes other than such Managing City’s administration, maintenance, and operation of consolidated library services within such Managing City’s Zone. Any funds provided hereunder which are used for other
purposes shall be reimbursed to County by the Managing City to whom such funds were disbursed hereunder.
g. In addition to the County Contribution, the County shall work in good faith to secure funding commitments from each city in which a branch library is operated through separate agreements with those cities. Partner cities are expected to contribute an amount at least equal to County funding for libraries within their Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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jurisdiction as shown in Table 1, above. Payments from partner cities shall be made according to the schedule set forth in Section 6.d, above. h. If a branch library moves from one Zone to another, or a new Zone is created for a branch library, the County may reserve a portion of funding allocated to the Managing City for the new Zone to reimburse the Managing City that administered such re-zoned branch library in its prior Zone for residual expenses for a period of one year after such relocation or re-zoning.

7. County Buildings
Ownership of branch library buildings and the land on which such buildings are situated or are to be situated, if situated on County land or purchased with County funds, shall be vested in County, and this Agreement shall not confer any rights on any Managing City to any such County- owned branch library building or real property in any Zone. County may designate any such County building(s) for use by a particular Managing City or Managing Cities to serve a particular Zone or Zones, or any portion thereof. In so designating County buildings, County shall consider the recommendations of the Library Advisory Committee, as well as public comments and other relevant information.

Each Managing City to which a branch building is designated shall maintain, repair, and operate such branch library building to the extent funding is available and in accordance with Section 9, below. Upon a change or termination of such building designations, the Managing City shall vacate such building and return such building to County in the same condition as the Managing City received it, usual wear and tear excepted.

8. Furnishings, Equipment and Supplies
The parties hereto agree all furnishings and equipment, including, but not limited to, books, shelves, desks, tables, chairs, study carrels, telecommunication and computer equipment and systems, office machines, appliances, fixtures and HVAC systems, that are contained in and designated for use solely in a branch library for which the County is responsible for the property insurance. Such branch library locations include Cuyama, Montecito, Solvang and Vandenberg Village. In all other locations, the furnishings and equipment of each branch library shall be Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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deemed to be the property of the Managing City responsible for administering the Zone where such branch library is located.

Each Managing City shall solely be responsible for the cost of purchasing all office and restroom supplies needed for the operation of the branch libraries located within such Managing City’s respective Zone (“Essential Supplies”), and shall notify the CSD Director in writing in the event that such Managing City lacks sufficient funding for such Essential Supplies, in which case, such Managing City may use funds provided hereunder for the stated purpose of purchasing such otherwise unaffordable Essential Supplies.

9. Facility Maintenance and Repair
Each Managing City shall perform all necessary maintenance, repairs, and replacements with respect to the branch libraries at locations owned by the County (i.e., Cuyama, Montecito, Solvang and Vandenberg Village) within such Managing City’s Zone, in accordance with the Maintenance and Repair Responsibilities schedule attached hereto as Exhibit B and incorporated herein by reference, with the exception of the City of Carpinteria, which is subject to a separate 99-year lease agreement with the County. All such maintenance and repair work shall be done in a competent and workmanlike manner. Each Managing City shall notify the CSD Director in writing of any necessary maintenance or repairs to a County-owned branch within such Managing City’s Zone that exceed the funds available to such Managing City hereunder. For maintenance and repairs that are the responsibility of County hereunder, each Managing City shall send a written request for service of such facilities within such Managing City’s Zone to County at the address set forth below:

County of Santa Barbara, General Services Department
Attn: General Services Facilities Manager, Scott Hosking 1105 Santa Barbara Street, 2nd Floor
Santa Barbara, CA, 93101
Email: [email protected]
Phone: 805.568.2533
Each Managing City is allowed to use the funds provided to such Managing City hereunder for the stated purpose of facility maintenance and repair of such Managing City’s branch locations.

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10. Janitorial Services
Each Managing City shall be responsible for directly managing and paying costs for janitorial services at each branch location in its respective Zone, unless a supplemental agreement is made with a partner city. Each Managing City is allowed to use the funds provided to such Managing City hereunder for the stated purpose of janitorial services.

11. Utilities
Each Managing City shall be responsible for paying the utilities and connection costs associated with the branch locations in its respective Zone, unless a supplemental agreement is made with a partner city. The utility service costs shall include charges for electricity, water, natural gas, telephone, cable, internet, and sewer services. Each Managing City is allowed to use the funds provided to such Managing City hereunder for the stated purpose of paying utilities at its branch locations.

Since County is assuming responsibility for paying utilities (electricity, natural gas, refuse, and water) at the Solvang branch (located within Zone 4) and the Cuyama branch (located within Zone 3), County will withhold $5,000 from its allocations to both Goleta (Zone 4) and Santa Maria (Zone 3), to cover the costs of such utilities. In June 2026, County will deduct the actual costs of such utilities from such withholdings, and then transfer any remaining balance to Goleta (Zone 4), and Santa Maria (Zone 3), as applicable. Any additional utility costs that are incurred with respect to any of the Montecito, Solvang, or Cuyama branch locations that are not directly charged to County will be paid by each Managing City responsible for administering such Zone (i.e., Goleta for Solvang, Santa Maria for Cuyama, Santa Barbara for Montecito).

12. Administration Charges
Each Managing City may recover from the funds allocated to it hereunder an administrative charge, in an amount not to exceed 25% of such Managing City’s annual operating budget, that is reasonable and sufficient to reimburse the Managing City for the costs and expenses necessary to provide library services pursuant to this Agreement. Such administration charges may include the following items:
a. Administrative oversight including meetings with municipal leaders, Friends of the Library, and management from zone branch libraries; City Council meetings and Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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presentations; County Library Advisory representation and reporting; development and management of annual budgets; and, strategic planning. b. Human Resources Management, including time sheets; payroll; staff evaluations processing; promotions; new hire and termination processing; scheduling; training; and, internal communications.
c. Risk Management, including on the job injury and workers’ compensation forms and reporting processing; and, building insurance reporting. d. Accounting, including reconciliation of cash receipts; materials (books, magazines, audio books, DVDs) purchases, receipts, and verification; invoice payment; digital vendor service initiation, purchase, and monitoring; and gift funds accounting. e. Information technology (IT), including the development, maintenance, and use of computer systems, software, networks, and equipment for the processing and distribution of voice and data communications.
f. Reporting, including creation of reports to Federal, State and/or local authorities; quarterly and annual report generation for Santa Barbara County. g. Adult literacy, including tutor training; supervision of tutors and learners, workforce development.
h. User account management, including shipment, returns, holds, problem solving accounts, managing disputes, and damaged and lost item management. i. Research and material access, including advanced research by librarians; interlibrary materials requests outside the cooperative system; gift materials processing; and, collection management.
j. Other, including ordering supplies and equipment; centralized liaison for services and communications with external parties; publicity and public relations support; technical troubleshooting; and, website and social media updates. k. Allocated costs from Centralized City Departments, such as Information Technology, City Manager’s Office, Legal Services, and Human Resources, in alignment with generally accepted cost accounting allocation principles.

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Each Managing City shall document the financial basis for such administration charges if the total combined branch administration charges exceed 10% of the total County payments to the Managing City hereunder.

13. Library Advisory Committee
County’s Board of Supervisors has by appointment created a Library Advisory Committee.

The term of office of each member of the Library Advisory Committee shall annually and automatically renew each year, unless replaced at the pleasure of the Board of Supervisors or by request of the nominating jurisdiction.

Each Managing City shall nominate one member for appointment by the Board of Supervisors. In addition, the partner cities of Buellton, Guadalupe, and Solvang, in recognition of their significant contributions to free library service within the County, may each nominate one member for appointment by the Board of Supervisors, and the County Supervisor of each supervisorial district shall nominate one member. In recognition of County Service Area 3’s significant contributions to free library service, County’s Board of Supervisors shall appoint one member from the residents of County Service Area 3. The Supervisors shall further appoint one member of its Board, or a designee, to chair the Library Advisory Committee.

The Library Advisory Committee shall meet at least quarterly to review services and operations and to make advisory recommendations to the Board of Supervisors as follows:
a. Ensure adequate library services to all the inhabitants of County; b. Review the operation of the library system and this Agreement; c. Submit advisory recommendations to ensure adequate service to branch libraries; d. Promote collaborative exchange of information among libraries; ● Review annual library budgets and reports of service levels; and ● Receive notices of reductions to the level of library services; and ● Receive citizen input regarding library-related issues and make recommendations thereon.

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14. Indemnification
In lieu of and notwithstanding the pro rata risk allocation which might otherwise be imposed between the parties pursuant to California Government Code Section 895.6, the parties hereto agree that all losses or liabilities incurred by a party hereto shall not be shared pro rata, but instead all parties hereto agree that, pursuant to California Government Code Section 895.4, each of the parties hereto shall fully indemnify and hold each of the other parties hereto, and their officers, board members, employees and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined by California Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, board members, employees or agents, under or in connection with or arising out of any work, authority or jurisdiction delegated to such party under this Agreement. No party, nor any officer, board member, employee or agent thereof, shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of any of the other parties hereto, or their officers, board members, employees or agents, under or in connection with or arising out of any work, authority or jurisdiction delegated to such other parties under this Agreement.

15. Insurance
Each Managing City to which a building is designated shall obtain and maintain in effect during the period of such designation general and automobile liability insurance covering the use of such building by that Managing City to which it is designated, and by its officers, agents, employees or volunteers acting on Managing City's behalf or at Managing City’s direction, with single limit coverage of not less than $1 million. Each Managing City shall also maintain Workers' Compensation coverage as required by the California Labor Code and employers' liability insurance. All insurance coverages are to be placed with insurers which (1) have a Best's rating of no less than A VII, and (2) are admitted insurance companies in the State of California. All other insurers require the prior approval of County. The general and automobile liability insurance policy shall name County, its officers, agents and employees as additional insured, and shall not be canceled without giving at least thirty-days' prior written notice to County. County shall be furnished with a certificate of insurance by Managing City to which a branch library building has been designated prior to performance by Managing City. A copy of the endorsement evidencing Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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County has been added as a named additional insured on the policy must be attached to the certificate of insurance. The policy or policies shall include severability of interest or cross liability clause or equivalent wording. The policy or policies shall contain a provision of the following form: “Such insurance as is afforded by this policy shall be primary and contributory to the full limits stated in the declarations, and if County has other valid and collectible insurance for a loss covered by this policy, that other insurance shall be excess only”.

As an alternative to the liability insurance requirements contained above, a Managing City can provide evidence in writing to County showing that it has an approved self-insurance program and will then only be required to submit a certificate of insurance for the difference, if any, between its self-insurance limit and $1 Million combined single limit coverage.

The property insurance for each building shall be borne by the party that owns the building.

For branch locations housed within a County-owned building, County shall be responsible for property insurance for both the building and its contents. Such locations include Carpinteria, Cuyama, Montecito, Solvang and Vandenberg Village. For each branch library located within a leased building, Managing City that is the lessee of the building space shall be responsible for property insurance for both the building and its contents. For the purpose of this Agreement, “content” includes furnishings, equipment, and supplies as identified in Section 8, as well as audiovisual and electronic materials such as books, subscriptions, government documents, and microfilm used by library patrons. Each Managing City is allowed to use the funds herein made available for the stated purpose of property insurance for contents in its respective branch facilities.

16. Budget, Revenue/Expenditure and Services Plan
a. On or before December 31, 2025, each Library Director shall confer with the County and a representative from each city in which a branch library operates in its zone to review expected funding and service levels for the next fiscal year. The CSD Director or his or her designee will initiate and lead this effort. b. Upon completion of review of expected funding and service levels under subsection

16.a, above, the County shall work in good faith to secure funding commitments from each branch library’s partner city (and friends organization if the operating budget relies on more than $50,000 from friends organizations) and notify the Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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Library Director of expected funding amounts from the County, partner city, friends organizations, and other sources for the upcoming fiscal year. c. Upon completion of the activities in both subsections 16.a and 16.b, above, but no later than March 1 of each year, each Library Director shall submit to the County a Revenue/Expenditure plan and proposed budget for each branch. Such plan shall include:
● Operations budget for the previous, current, and upcoming fiscal year by branch library, as well as current reserves, if any, held by Managing City, broken out by branch library;
● Report of service levels in relation to adopted minimum or agreed upon target service levels, with estimated costs to reach adopted minimum or agreed upon target service levels;
● Anticipated changes to service levels;
● Capital/infrastructure needs and estimated costs; and ● A library services plan for any unincorporated community within its zone that has a population of more than 10,000 and does not have a branch library.

17. Reports of Receipts and Disbursements
Upon adoption of a library budget by each Managing City, the Managing City shall provide to the County’s designated representative a written copy of such budget showing the amount to be spent in each branch including anticipated disbursements from reserves and gifts. Amendments to branch budgets must be reviewed by the Library Advisory Committee prior to review by the Board of Supervisors. Such amendments may include unanticipated or required reductions or increases in revenue via any source. Managing Cities shall provide County with copies of amendments to branch budgets upon County’s request.

Annually, each Managing City shall provide County with a statement of all receipts and disbursements made pursuant to this Agreement, listing all items of receipt and expenditure throughout the year. Such statements showing the amount spent in each respective County branch located in that Managing City’s Zone shall include an itemization of salaries and wages, materials, supplies, and services, capital outlay, and use of reserves and gifts. In particular, such statement Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

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shall show as separate items those obligations and expenditures which are made or incurred for the purpose set forth in Section 6. The annual financial statements shall be submitted no later than sixty (60) days after the end of the fiscal year. Each Managing City shall keep accurate accounts and records for funds expended to accomplish the purpose of this Agreement, and shall make such accounts and records available at all times for inspection and audit by authorized agents of the County of Santa Barbara. All such accounts and records shall be retained for at least a period of five (5) years after the fiscal year to which such records relate. All accounting records shall be kept in accordance with generally accepted accounting principles. COUNTY shall have the right to audit and review all such documents and records at any time during Managing City’s regular business hours or upon reasonable notice. In addition, if this Agreement exceeds ten thousand dollars ($10,000.00), each Managing City shall be subject to the examination and audit of the California State Auditor, at the request of the COUNTY or as part of any audit of the COUNTY, for a period of three (3) years after final payment under the Agreement (Cal. Govt. Code Section 8546.7). Managing Cities shall be subject to, participate in, and cooperate with, all audits, examinations or reviews, whether by COUNTY, the State, or the Federal Government.

If federal, state or COUNTY audit, examination or review exceptions, findings, adjustments or disallowances are made relating to this Agreement, each Managing City shall reimburse its share respectively of all such exceptions, adjustments, and disallowances.

18. Gifts
Each Managing City shall have or adopt a gift policy, to inventory, characterize, track, and report on gifts made directly to a Managing City’s individual branch library. Each Managing City shall provide a copy of its gift policy to the County. Each Managing City shall notify County of any changes made in the gift policy. In the event any person gives or bequeaths any gift directly to any library herein referred to, such gift shall be treated according to the gift policy of Managing City or County, as applicable. Any gift accepted for a library in the unincorporated areas of County shall become the property of County. Any gift accepted by a Main Library shall become the property of that Managing City. Each gift given directly to a library shall, to the extent desired by the presenter, contain specific reference regarding preferred use (i.e., programs, equipment, books etc.).

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19. Emergency
In the event of an emergency (a) which results in a loss of library materials, and/or (b) which affects the ability of any branch library to maintain the current level of library service, any party hereto may request the assistance of any other party in obtaining replacement library materials necessary for the functioning of the affected branch; provided, that all expenditures for replacement materials are approved in advance and in writing by the requesting party, the assisting party shall be entitled to full reimbursement from the requesting party for all expenditures made in accordance with applicable laws governing the assisting party.

20. Assignment
No Managing City shall assign or otherwise transfer, in whole or in part, directly or indirectly, whether by operation of law or otherwise, this Agreement or any of such Managing City’s rights or obligations hereunder, or any monies payable hereunder, without the prior written consent of County in each instance. Any attempt to so transfer without County’s prior written consent shall be voidable by County.

21. Provisions Required by Law Deemed Inserted
Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein, and this Agreement shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted or is not correctly inserted, then upon request of any party hereto this Agreement shall forthwith be physically amended to make such insertion or correction.

22. Notices
Any notice or consent required or permitted to be given under this Agreement shall be given to the respective parties in writing, by first class mail, postage prepaid, or otherwise delivered as follows:

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County of Santa Barbara
Jesús Armas,
Community Services Director
123 East Anapamu Street, 2
nd Floor
Santa Barbara, CA 93101
~~
Dawn Jackson, Library Director
Santa Maria Public Library
421 S. McClelland Street
Santa Maria, CA 93454
~~
Sarah Bleyl, Library Director
Lompoc Public Library
501 E. North Avenue
Lompoc, CA 93436

Elizabeth Saucedo, Library Director
Goleta Valley Library
500 North Fairview
Goleta, CA 93117

~~
Brandon Beaudette, Library Director
Santa Barbara Public Library
P.O. Box 1019
Santa Barbara, CA 93102
~~
Eric Castro, Library Director
Carpinteria Public Library
5141 Carpinteria Avenue
Carpinteria, CA 93013

or at such other address or to such other person that the parties may from time to time designate. Notices and consents under this section, which are sent by mail, shall be deemed to be received five (5) days following their deposit in the U.S. mail.

23. Section Headings
The headings of the several sections, and any table of contents appe nded hereto, shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof.

24. Severability
If any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal, or unenforceabl e in any respect by a court of competent jurisdiction, then such provision or provisions shall be deemed severable from the remaining provisions hereof, and such invalidity, illegality or unenforceability shall no t affect any other prov ision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.

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25. Remedies Not Exclusive
No remedy herein conferred upon or reserved to County is intended to be exclusive of any other remedy or remedies, and each and every such remedy, to the extent permitted by law, shall be cumulative and in addition to any other remedy given hereunder or now or hereafter existing at law or in equity or otherwise.

26. Entire Agreement and Amendment
In conjunction with the matters considered herein, this Agreement contains the entire understanding and agreement of the parties hereto regarding the subject matter hereof, and there have been no promises, representations, agreements, warranties, or undertakings by any of the parties, either oral or written, of any character or nature hereafter binding except as set forth herein.

This Agreement may be altered, amended, or modified only by an instrument in writing, executed by all the parties to this Agreement and by no other means. Each party waives its future rights to claim or assert that this agreement was modified, canceled, superseded, or changed by any oral agreements, course of conduct, waiver, or estoppel.

27. Successors and Assigns
All representations, covenants, and warranties set forth in this Agreement, by or on behalf of, or for the benefit of any or all of the parties hereto, shall be binding upon and inure to the benefit of such party and its permitted successors and assigns.

28. Compliance with Law
Each party hereto shall, at its sole cost and expense, comply with all County, State, and Federal ordinances, regulations, and statutes now in force or which may hereafter be in force with regard to this Agreement. The judgment of any court of competent jurisdiction, or the admission of any such party in any action or proceeding against such party that such party has violated any such ordinance or statute, shall be conclusive of that fact as between such party and County, whether or not County is a party in such litigation.

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29. California Law
This Agreement shall be governed by the laws of the State of California. Any litigation regarding this Agreement or its contents shall be filed in the County of Santa Barbara, if in state court, or in the federal district court nearest to Santa Barbara County, if in federal court.

30. Execution of Counterparts
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as the parties shall preserve undestroyed, shall together constitute one and the same instrument.

31. Authority
All signatories to this Agreement warrant and represent that they have the power and authority to enter into this Agreement in the names, titles, and capacities herein stated and on behalf of any entities, persons, or firms represented or purported to be represented by such signatories and that all formal requirements necessary or required by any local, state and/or federal law in order to enter into this Agreement have been fully complied with. Furthermore, by entering into this Agreement, each party hereby warrants that it shall not have breached the terms or conditions of any other contract or agreement to which that party is obligated, which breach would have a material effect hereon.

32. Digital and/or Electronic Signatures
Digital and/or electronic signatures created in a manner consistent with the County’s Electronic and Digital Signature Policy ITAM-0430 (12/8/2020) shall satisfy the County’s requirements for signing this document. Signatures can be made by electronic, scanned, faxed, and/or digital means. Contracts signed with proper electronic and digital signatures are valid and enforceable.

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ATTACHMENTS:
● Exhibit A – County Zone Service Delivery Map
● Exhibit B – Maintenance and Repair Responsibilities for County Owned Library Facilities

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379

FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 23 of 27 ends

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the _______ day of__________________, 2026.

CITY OF SANTA MARIA

ATTEST:

By: _____________________________ By: ____________________________ Mayor City Clerk

APPROVED AS TO FORM:

By: _____________________________ By: _______________________________ City Attorney Risk Manager

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 24 of 27 ends

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the _______ day of __________________, 2026.

CITY OF SANTA BARBARA

ATTEST:

By: _____________________________ By: ____________________________ City Administrator City Clerk

APPROVED AS TO FORM: APPROVED AS TO FORM:

By: _____________________________ By: _______________________________ City Attorney Risk Manager

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 25 of 27 ends

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the _______ day of __________________, 2026.

CITY OF LOMPOC

ATTEST:

By:__________________________
Mayor ________________

By:_________________________
City Clerk ______________________

APPROVED AS TO FORM:

By: _____________________________
City Attorney

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 26 of 27 ends

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the _______ day of __________________, 2026.

CITY OF GOLETA

ATTEST:

By:______________________________
Mayor _______________________

By:______________________
City Clerk ____________________

APPROVED AS TO FORM:

By: _____________________________
City Attorney

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 FY 2025-2026 Agreement for Operation of a Countywide Library System

Page 27 of 27 ends

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the _______ day of __________________, 2026.

CITY OF CARPINTERIA

ATTEST:

By:______________________________
Mayor _______________________

By:______________________
City Clerk ____________________

APPROVED AS TO FORM:

By: _____________________________
City Attorney

Docusign Envelope ID: F32F51F9-72EB-49C5-94BB-3EBACB18DB55 Docusign Envelope ID: 68CDDCE2-3E51-4747-ADF0-9DDA451EB379 Drum Canyon Rd
Foxen Canyon Rd
Santa Rita Rd
|}166
£¤101
Happy Canyon Rd
Zone 5
|}166
|}1
|}246
|}154
|}33
|}135
|}192
|}217
|}150
|}225
|}166
|}135
|}1
|}1
|}1
|}135
|}192
£¤101
Zone 3
Zone 1
Zone 2
Zone 4
San Antonio Creek
CuyamaRiver
Orcutt Creek
ZacaCreek
IndianCreek
Manzana Creek
Sisqu oc River
ElJaro
Creek
Santa Ynez River
Santa Cruz Creek
Jalama Creek
Daw
n
Drive
TepusquetCreek
Santa Maria River
Asphaltum Creek
MonoCreek
CachumaCreek
Tinta Creek
Gato Creek
LisqueCreek
NorthForkla Brea Creek
San Jose Creek
BitterCreek
Aliso Creek
Forbush Creek
SteerCreek
Cebada
Creek
Ellwood Creek
Mission Creek
Tecolote Creek
La Brea Creek
Canada Honda Creek
SalisburyCanyonRoad
AtascaderoCreek
SantaLuciaCreek
DosPueblosCreek
Espada
Creek
Cuaslui Creek
Lacosa Creek
Oak Creek
Buckhorn Creek
Barka Slough
Carpinteria Creek
GasperCreek
Camuesa Creek
Bear Creek
Salsipuedes Creek
Santa Monica Creek
Las Veras Creek
Adler Creek
PurismaCreek
Yridisis Creek
Gidney Creek
Coche Creek
Winchester Creek
FishCreek
San Lucas Creek
Dry Creek
Las Vegas Creek
Tajiguas Creek
Franklin Creek
Happy Canyon Creek
Rancho Nuevo Creek
Romero Creek
Kelly Creek
Maria Ygnacio Creek
SheepCamp Road
North
Fork Juncal Creek
SouthForklaBreaCreek
El Callejon Creek
South Fork Sisquoc River
Tecolutito Creek
Hot Springs Creek
Arroyo Quemaddo
Orcutt Creek
Cuyama River
Sisquoc River
Cuyama River
Cuyama River
Cuyama River
Dry Creek
Santa Ynez River
Cuyama River
Bear Creek
Sisquoc River
Cuyama River
CuyamaRiver
Santa MariaRiver
Cuyama River
SantaMaria River
Santa Ynez River
South Fork la Brea Creek
Cuyama River
SanAntonioCreek
Mono Creek
Santa Maria River
CuyamaRiver
Santa Maria River
Cuyam
aRiver
Santa Maria River
US Hwy 101
Main St
State Hwy 166
Refugio
Rd
FoxenCanyonRd
SierraMadreRdBlack Rd
Coast Rd
Camino Cielo
StateHwy154
Foothill Rd
AlisalRd
Pt Sal Rd
Clark Ave
Jalama Rd
Stowell RdBrown Rd
Cab rillo Hwy
State Hwy 246
SurfRd
PalmerRd
Cliff D r
TangairRd
Graciosa
Rd
O St
Via Real
Utah Ave
V St
State Hwy 33
Central Ave
Lompoc-casmaliaRd
D St
Figueroa Mountain Rd
Cat CanyonRd
Sa nta Rosa Rd
Blosser Rd
Dom
inion
Rd
Telephone Rd
Ray Rd
TepusquetRd
ThirteenthSt
WasiojaRd
Perkins
Rd
Roblar AveSweeney Rd
Alisos Canyon Rd
Prell Rd
State
Hwy
1 GrantRd
Alvin Ave
Edison
St
M ission Dr
H St
Baseline Ave
BallardCanyonRd
Ocean Ave
Camuesa Rd
Olive Ave
BellRd
Alisos Ave
Depot St
SantaBarbaraCanyonRd
Calle Real
Gibraltar R d
Foster Rd
CaliforniaBlvd
Zaca Lake Rd
Woodstock Rd
College Dr
Modoc Rd
Cross R d
San Antonio Rd
Betteravia Rd
Farm Rd
Miranda Pine Rd
Dione Rd
Bell St
Simas St
ZacaStationRd
Juncal Hot SpringsRd
Artesia
Ave
Mira Rd
Railroad
Ave
Honda RidgeRd
Cebada CanyonRd
C ombar Rd
NewBeach Blvd
Watt Rd
Seventh St
Colson Canyon R d
Foot hill Td
Philbric Rd
Alisos St
Spur Rd
Chino St
Viola Ln
Ai r field Rd
Tank Rd
Bishop Rd
Airpark Dr
Marina Dr
Obispo St
Trigo Rd
Phelps Rd
Rigel Ave
A St
Battles Rd
Onstott Rd
Via Alta
State St
Hill Rd
Las CanoasRd
First St
Brown
Rd
State Hwy 1
Foothill Rd
Santa Rosa Rd
Camino Cielo
State Hwy 154
A St
Camino Cielo
US Hwy 101
US Hwy 101
CabrilloHwy
US Hwy 101
BlosserRd
State Hwy 33
State Hwy 166
Sierra Madre Rd
Ocean Ave
Camino Cielo
State Hwy 1
Calle Real
CoastRd
USHwy101
Santa Barbara
Santa Maria
Lompoc
Goleta
Carpinteria
Solvang
Buellton
Guadalupe
Twitchell Reservoir
Cachuma Reservoir
Gibraltar Reservoir
Jameson Lake
Montecito
Orcutt
Vandenberg AFB
Toro Canyon
Eastern Goleta Valley
Ballard
Garey
Summerland
Santa Ynez
Vandenberg Village
Sisquoc
Los Olivos
Mission Canyon
Mission Hills
Los Alamos
Isla Vista
Cuyama
New Cuyama
University of California-Santa Barbara
Casmalia

GRAPHIC SCALE
Santa Barbara County Library Zones
Compiled by the Office of the County Surveyor in September 2022. 0 5 10 15 202.5
Miles
Legend
Roads
Rivers
Lakes
Places
Cities
Library Zones
1 2
3 4
5 C a l i f o r n i a
q
NOTICE OF DISCLAIMER: This data is for reference only. Although every effort has been made to ensure the accuracy of information, errors and conditions originating from physical sources used to develop the database may be reflected in this data. Santa Barbara County shall not be liable for any errors, omissions, or damages that result from inappropriate use of this document. No level of accuracy is claimed for the boundary lines shown hereon and lines should not be used to obtain coordinate values, bearings or distances.

Vicinity Map
C a r t o gr ap hy by A dr i an F ost er
Based on 2020 US Census Blocks
Revising 2019 Library Zones to establish Zone 5, as approved on 7/12/2022 by Board of Supervisors Minute Order (File Reference 22-00640).

Note: Library Zone 1 also includes San Miguel, Santa Rosa, Santa Cruz and Santa Barbara Islands. 22GI004
P a c i f i c O c e a n
San Luis Obispo
County
Ventura
County
Kern
County
EXHIBIT “B”

MAINTENANCE AND REPAIR RESPONSIBILITIES FOR COUNTY LIBRARY FACILITIES

CUYAMA, MONTECITO, SOLVANG AND VANDENBERG VILLAGE

Page 1 ends

ITEM
NO. ITEM

NOT APPLICABLE COUNTY MANAGING CITY

1. Building Exterior
Repair Walls X
Painted Surfaces* X
Door and Window Trim X
Doors, Hardware X
Windows: Hardware and Screens X
Locks X
Roof X
Rain Gutters X
Flashing X
Down Spouts X
Lighting
Bulbs X
Fixtures X
Transformers X
Fluorescent Lights X
Ballast X
Handrails X
Signs (County Designation) X
Timers X
Gutters X
Decking Walkways Replace Maintain
Exterior Patios X
Decking (Overdecking on roof top area) X
Water Softener, Filter and Conditioner X
Stairs X
Roof Drains X
Gates X
Gas/Water Lines X
Elect. Lines X
Phone/ Computer Lines X
Sewer Lines X

Page 2 of 5 ends

ITEM
NO. ITEM

NOT APPLICABLE COUNTY MANAGING CITY

2. Building Interior
Repair Walls X
Painted Surfaces X
Doors, Hardware X
Locks X
General Cleaning X
Floor, Sweeping and Cleaning X
Carpet, Vacuum and Cleaning X
Window Coverings X
Lighting
Bulbs X
Fixtures X
Transformers X
Fluorescent Lights X
Ballast X
Handrails (ADA) X
Signs X
Timers X
Drinking Fountains X
Ceiling X
Showers X
Toilet/Urinals (Replacement) X
Toilet/Urinals (Maintenance) X
Sink & Faucets (Replacement) X
Sink & Faucets (Maintenance) X
Gas Lines X
Water Lines X
Sewer Lines/Drains X
Phone Lines & Jacks X
Computer Lines & Jacks X
T.V. Cable & Jacks X
Phones X
Towel Racks X

Page 3 of 5 ends

ITEM
NO. ITEM

NOT APPLICABLE COUNTY MANAGING CITY
Garbage Disposal X
Refrigerator/ Microwave X
Stove X
Counter Tops, replacement X
Cabinets, replacement X
Dish Washer X
Trash Compactor X

3. Grounds
Drinking Fountains X
Mail Boxes X
Fences X
Trash Bins X
Trash Enclosures Replace Maintain
Bike Racks X
Signs (County) X
Litter Pick-up X
Lighting
Parking Lot X
Driveways X
Walkways X
Timers (external) X
Timers (internal) X
Signs X
Cleaning, Sidewalks, Walkways, Parking Lot X

4. Landscaping
Trees X
Shrubs X
Flowers X
Lawn X

Page 4 of 5 ends

ITEM NO. ITEM NOT APPLICABLE COUNTY MANAGING CITY Watering X
Sprinkler, Repair and Replace X
Headers X
Rodent/Pest X
Seeding X
Fertilizer X
Plant Trimming X
Plant Removal X
Plant Replacement X
Tree Care & Trimming X

5. Mechanical Systems
Electrical Panels, Breaker, Interior X
Electrical Fuses, Interior Replace Maintain
Electrical Receptacle, Switches, Interior X
Electrical Central Switches X
Elevator X
Heating Replace Maintain
Air Conditioning Replace Maintain
Water Heater Replace Maintain

6. Roadways/Parking Lots
Repair & Maintenance
Striping X
Handicap Signage X
Asphalt Surface, Curbing X
Cement Surface, Curbing X
Wheel Stops X
Drainage X
Signs X

Page 5 of 5 ends

ITEM NO. ITEM NOT APPLICABLE COUNTY MANAGING CITY

7. Fire Equipment
Sprinklers X
Hoses X
Extinguisher (interior) X
Alarm Systems X
Smoke Detectors Replace Maintain

8. Other Items
Paper supplies, dispensers, waste containers,
soap in restrooms and kitchens
X
Interior janitorial products and services X
Interior Floor Waxing, Sweeping X
Window Washing (interior & exterior) X
Exterior sweeping entry, sidewalks and
walkways
X
Janitorial service for public areas or
common use areas
X
Broken window glass or door glass** X
Refuse, Rubbish and Garbage Disposal X
Cleaning Storage Rooms, Utility Rooms X
Exterminating X
Carpet Replacement, Linoleum Replacement, and/or
Tile Replacement
X
Building Foundation X
Flooring (wood & concrete) X
Utility mains & appurtenances X
Library Drop Box X

Attachment C
Santa Barbara County Library Zones Map

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Christopher Williams, Chief of Police

DATE: March 3, 2026

SUBJECT: Adoption of a Resolution Awarding a P rofessional Services Agreement with Sintra Group for Public Safety Background Investigation Services

Description:

The City Council will consider adopting a Resolution approving a Professional Services Agreement with Sintra Group to provide pre -employment background investigation services for Public Safety.

RECOMMENDATION:

1. Adopt a Resolution awarding a Professional Services Agreement to Sintra Group for public safety background investigation services; and

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

BACKGROUND:

For approximately two decades, the Santa Maria Police Department has utilized contracted professional investigators to conduct pre -employment background investigations for police personnel and other public safety positions. Contracting these services ensur es that investigations are conducted by trained specialists who are knowledgeable in Peace Officers Standards and Training (POST) standards, employment law, and best practices in public safety hiring.

Historically, the Department has relied on multiple vendors to meet operational demand.

In recent years, some existing vendors have reduced their capacity and are no longer able to independently support the Department’s background workload. As a result, the Department has had to distribute cases among sever al providers, which can lead to inconsistencies in format, methodology, and reporting.

The Department is also transitioning to a modern digital background investigation platform, which replaces older paper -heavy systems and improves efficiency, storage, and audit compliance. This transition presented an appropriate opportunity to issue a 2 Request for Proposals (RFP) to identify a qualified vendor capable of managing a large volume of investigations while adapting to the new platform.

Additionally, the Fire Department also has a need for background investigation services and coordinated with the Police Department in advance of the RFP process . The Fire Department will also utilize the vendor selected through this process for its background investigation needs. This approach supports consistency in public safety hiring practices and promotes administrative efficiency through shared use of a qualified provider.

DISCUSSION:

On November 1, 2025, the Police Department issued an RFP seeking a professional firm with demonstrated experience in large-scale public safety background investigations, the ability to provide consistent investigative standards, and competitive pricing. The deadline for submission was December 1, 2025. Multiple proposals were received and ev aluated based on qualifications, experience, staffing capacity, compliance with legal standards, and cost.

Sintra Group was selected as the most qualified proposer. Sintra Group has specialized in public safety background investigations since 2002 and has conducted thousands of investigations for police and fire agencies throughout California. The firm utilizes a team- based model staffed by licensed investigators, many of whom are retired public safety professionals with executive-level experience. Their operational structure allows them to scale services to meet agency demand while maintaining strict quality control and supervisory review.

The Department has been utilizing Sintra Group on a limited basis and has experienced strong performance, timely case completion, and professional communication. Their investigative approach aligns with POST requirements and Department expectations.

Sintra Group has also demonstrated the ability to integrate with digital platforms, ensuring continuity and modernization of the background process.

Awarding a contract to a single primary vendor is expected to improve consistency in investigative standards, reduce administrative inefficiencies, and provide predictable turnaround times. Consolidation of services also strength ens accountability and quality assurance.

Alternative(s)
The City Council could decline to approve the agreement and direct staff to continue using multiple vendors. This alternative would likely maintain the current challenges of inconsistent reporting formats, variable capacity, and increased administrative oversight.

Fiscal Considerations
Each background investigation is estimated to cost between $1,600 to $2,000, and total costs shall not exceed $225,000 per year. Background investigations are conducted only when vacancies occur and are funded through salary savings generated by those vacancies. The Department does not maintain a separate professional services allocation 3 for these costs. Because the expense is offset by existing vacancy savings, approv al of this agreement does not create an additional General Fund impact. The contract establishes pricing and service availability but does not obligate the City to a fixed expenditure.

Impact on the Community
Thorough and consistent background investigations are critical to maintaining public trust and ensuring that the City hires qualified, ethical, and professional public safety employees. A reliable investigative partner supports timely recruitment, reduces hiring delays, and helps maintain staffing levels necessary for effective service delivery.

ATTACHMENT(S)

A. Resolution
B. Sintra Group Proposed Contract

Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

AWARDING A PROFESSIONAL SERVICES AGREEMENT TO

SINTRA GROUP FOR PUBLIC SAFETY BACKGROUND INVESTIGATION SERVICES

WHEREAS, the City of Santa Maria (City) public safety departments have the need for professional investigators to conduct pre -employment background investigations for police personnel and other public safety positions in order to ensure compliance with Peace Officer Standards and Training (POST) requirements, employment law, and best practices in public safety hiring; and

WHEREAS, the City of Santa Maria Police Department issued a Request for Proposals to identify a qualified firm capable of conducting large -scale public safety background investigations, providing consistent investigative standards, integrating with the City’s transition to a modern digital background investigation platform, and offering competitive pricing; and

WHEREAS, Sintra Group was determined to be the most qualified proposer based on its extensive experience conducting public safety background investigations throughout California, its demonstrated capacity to provide consistent and timely services, and its ability to integrate with the City’s digital background investigation system; and

WHEREAS, approval of a Professional Services Agreement with Sintra Group will promote consistency in investigative standards, administrative efficiency, and accountability for both the Police and Fire Departments, and will be funded through salary savings generated by vacant positions without creating an additional impact on the General Fund;

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

SECTION 1. Approving a professional services agreement to Sintra Group for public safety background investigation services in an amount not to exceed $225,000 for a three - year term; and

SECTION 2. Authorizing the City Manager, or designee, to execute the agreement and take any necessary actions to implement this project; and

SECTION 3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City 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 3rd day of March 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

ATTACHMENT B
Atty. Rev. 2018

AGREEMENT FOR PROFESSIONAL SERVICES

Police and Fire Background Investigation Services

This Agreement is made on March 4, 2026, by and between, Sintra Group Professional Investigations, a California Corporation (“Contractor”) and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

WHEREAS, City desires to secure pre -employment background investigation services, and further to provide such services in acc ordance with POST Guidelines and California state law; and

WHEREAS, Contractor is willing to assist in the execution of such services, on an as needed basis, for the Santa Maria Pollice Department in consideration of receiving such fees as herein provided; and

WHEREAS, Contractor is specially trained, experienced, and competent to perform such services.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.1 Term and Termination. The term of this contract is three-years, beginning on the date first written above. This contract may be extended by mutual consent of the parties. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state o r federal law. Termination is effective 14 days after deposit of notice as specified in this Agreement.

2.2 Services to be Performed. Contractor shall determine the method, details and means of providing Police and Fire pre-employment background investigation services. More specifically, Contractor agrees to perform the specific services listed in Exhibit “A.”

2.3 City’s Duties. City’s duties under this Agreement are to cooperate with Contractor in the performance of the contract and timely pay invoices.

2.4 Payment. Payment terms under this Agreement are listed in Exhibit “B.”

2.5 Insurance. Contractor shall provide insurance as listed in Exhibit “C.”

ATTACHMENT B
Atty. Rev. 2018

2.6 Exhibits. Exhibits “A,” “B,” and “C” are attached and incorporated.

3. Contractor’s Obligations.

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

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

3.3 Status. Contractor (including its employees) is an independent contractor and all persons working for or under the direction of Contractor are its agents or employees and not agents or employees of the City . 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.

3.4 Indemnification. To the fullest extent permitted by law, the Consultant 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 a dministrative 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 Consultant or the acts or omissions of an employee, agent or subcontractor of the Consultant. T he provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Sec tion are not limited by the provisions of the Section relating to insurance.

Further, Contractor will defend and indemnify City, and hold it harmless, from any claim, demand or liability that is related to, or results from an assertion that as a result of providing services to City, an employee of Contractor or a person performing work pursuant to this Agreement is entitled to benefits from, or is covered by, the California Public Employee Retirement System.

4. Miscellaneous

ATTACHMENT B
Atty. Rev. 2018

4.1 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 th e City:

To City: To Contractor:

Attn: Chief Christopher Williams Attn: Charles
Hookstra
Santa Maria Police Department Sintra Group
1111 W. Betteravia Rd. 4864 Market St.

Santa Maria, CA 93455 Suite F
Ventura, CA 93003

If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.2 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.

4.3 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.

4.4 Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.5 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.

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

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

4.8 Severability. The provisions of this agreement are seve rable. 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.

ATTACHMENT B
Atty. Rev. 2018

4.9 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, Consultant and all subconsultants 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. o f 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.

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

SINTRA GROUP

___________________________
Charles Hookstra
Chief Operating Officer

CITY OF SANTA MARIA, a Municipal
Corporation of the State of California

Christopher Williams
Chief of Police

ATTEST:

Donna G. Schwartz, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

_______________________________
Risk Manager
_______________________________
City Attorney

EXHIBIT “A”

ATTACHMENT B
Atty. Rev. 2018

SCOPE OF SERVICES

SINTRA’S IMPLEMENTATION OF THE SCOPE OF SERVICES

Sintra Group organizes our workload in a team approach. Cases are assigned based on current workload and the residence of the applicant; we try to use the investigators closest to the applicant to conduct any in-person contacts which need to be made. The investigators are given a due date for completion and a check list of requirements. (The sample checklist is attached see Tab G Attachment 4 for reference ). This ensures the background interviews and preliminary reports are completed within the prescribed timeline. When Sintra Group receives the names and contact information of the applicants an instructional email is sent to the applicant.

The applicant is provided with a Personal History Statement, (PHS), a notarized waiver form and a list of required documents; (this can also be done by Agency Staff). Within the following two days a Sintra Group investigator will schedule a meeting with the applicant to review the PHS and collect all the original documentation. In this recorded interview, the investigator reviews the original PHS line by line, ensuring that the applicant understands the questions and the answers provided are clear and complete.

This interview is also used to develop additional information that may not have been included in the PHS and to identify any potential discrepancies in the applicant's statements; often, the applicant is directed to provide a written statement of circumstances that might lead to further investigation or disqualification. All original documents are stamped and initialed, which verifies the original document was viewed by the investigator. Copies of these, (e.g., birth certificate, naturalization certificates, Social Security Card, driver's license, car insurance, military discharge, etc.) are scanned to minimize storage. The document copies are collated into a digital binder using virtual dividers to separate the information into required categories. If an issue of concern is discovered during the process the department is notified thus potentially saving the agency money if the background has to be terminated prior to completion. If the background is completed ahead of schedule it is transmitted to the department as soon as possible.

As part of the interview the applicant is required to sign a number of forms for Sintra Group mandated by the California Civil Code (ICRA) and Fair Credit Reporting Act (FCRA), informing them of our identity and the scope of the investigation. The applicant is photographed at this time; the Tab D - Scope of Services

ATTACHMENT B
Atty. Rev. 2018

picture may be necessary for identification in future interviews. A description of the applicant's tattoos is taken, with photographs taken of these, if necessary, (either by the investigator or the applicant, depending on the nature and location of the images), especially if it appears the image(s) may conflict with Department policy or contain subject matter that may be gang related.

Sintra Group checks to ensure the high school from which the applicant graduated is an accredited school, pursuant to POST standards. If the school is not accredited and there is no college degree from an accredited college the Agency Representative will be immediately notified to determine if the applicant meets the minimum educational requirement. (If there is a post- secondary degree from an accredited college this high school verification will not be done, again per POST regulation).

Once the PHS interview is complete support personnel begin summarizing the PHS; conducting checks with courts in those cities and counties where the applicant has lived, worked or attended school looking for convictions, civil litigation or family law cases; conducting public records searches for other litigation, bankruptcies and/or civil liens on the applicant. A Public Record Database Search is conducted to verify the applicant's Social Security Number and professional licenses. Concurrently, an investigator is assigned to make contacts with references, relatives, landlords and coworkers; we try to do as many of these by telephone unless a face-to-face interview appears necessary. We do not utilize mailed in (or email) questionnaires. We feel interviews conducted in real time allow for a more complete and comprehensive dialogue which provides for real-time follow-up questioning. In addition, it enables our experienced investigators the opportunity to listen for voice inflections that would indicate hesitation to completely, or honestly, answer a question and allows the investigator to determine the need for follow- up investigation.

Following the interview, an investigator begins making telephone contacts to references, current and former supervisors/coworkers and relatives. These contacts are prioritized, with those persons or areas most likely to result in a disqualification being contacted first. Standardized questionnaires based on the POST Background Investigation Manual are used to ensure the areas covered are job-related and do not constitute forays into protected areas, such as American with Disabilities Act limitations. These forms have a minimum of "yes/no" questions because they are intended to seek descriptive answers regarding the applicant's behavior. In person neighbor interviews are conducted by a Sintra Investigator this includes the taking of a digital photograph of the applicant's residence and included in the file; this is primarily for the POST auditor who, when later inspecting these files, can see a personal visit was made.

ATTACHMENT B
Atty. Rev. 2018

For POST investigations (police officer and public safety dispatcher applicants), Sintra Group requires the applicant during the PHS interview to assist us in obtaining a credit report from one of the three Credit Reporting Agencies, (Equifax, Experian, and Trans Union). We utilize www.annualcreditreport.com, a website mandated by law to provide this information at no cost directly to consumers. If the applicant for any reason is not eligible for a free report it will be their responsibility to purchase a copy of the report that the investigator can receive directly from the Credit Reporting Agency to ensure the report is complete and unedited. The credit report will be discussed with the applicant and summarized in the final report.

The department representative is updated immediately if specific negative information is located which might result in the disqualification of the applicant. Sintra Group's goal is to provide pertinent information to the Agency that might merit a disqualification as quickly as possible to minimize costs to the Agency.

If the applicant is currently working for another public safety agency, we require him/her to sign a lateral waiver, informing him/her that negative information found during this investigation may be turned over to the applicant's current agency. Quite often, an applicant seeking to "escape" his/her current agency due to negative or disciplinary issues will decline to sign this waiver, resulting in the immediate cessation of the investigation. In the case of applicants who are either now working, or have worked, in a public safety agency, or have been the subject of a public safety background investigation, (whether or not the applicant was hired), we will attempt to either review the file or speak with someone there authorized to discuss the file.

Following the above process interview a final report, summarizing all of the POST mandated areas,

is reviewed by a Sintra Group supervisor to ensure the report is complete and thorough.

A sample
of Sintra’s final report is in Tab G Attachment 5 for reference.

Background Investigations on clerical or support personnel utilize the same questionnaires and procedures used for police department applicants. The Agency has the discretion to decide the depth of the investigation, based on the sensitivity of the position.

ATTACHMENT B
Atty. Rev. 2018

Background Investigations on firefighters and fire inspectors utilize the same questionnaires and procedures used for police department applicants with the exception that we do not collect information beyond a seven-year time period. This is to comply with the CA civil code 1781 that does not allow-for employment information gathering beyond seven years with the exception of for law enforcement. In addition, we do not obtain credit reports on fire applicants to comply with CA labor code 1045 which prohibits an employer from collecting credit information from a non-law enforcement applicant. A sample of Sintra’s final report is in Tab G Attachment 6 for reference.

A comprehensive background investigation file delivered to the City shall include a detailed report summarizing all findings and reports of each applicant's background and eligibility based on the City of Santa Maria Police and Fire Department hiring and standards. The background investigation report will, at a minimum, address the following areas:

a. A narrative-based summary of the applicant's background investigation. This summary will reflect the below-listed aspects of the background investigation and articulate any concerns that were discovered as a result.
b. A review of the candidate's personal history statement which includes social media.
c. A photograph of the applicant.
d. Verification of birth and citizenship, when legally permissible. e. Social Security Number (SSN) - Trace & Address Locator verification to determine name and name variations used by the individual such as maiden, divorced, or previous
names; other names associated with that SSN, current
and former addresses associated with that SSN, and date of birth.
f. Employment verification and history.
g. Verification and contacts with the applicant's professional references.
h. Verification and contacts with the applicant's personal references. i. Education background and verification. This section should verify that the applicant has either graduated from an accredited high school or has passed the General Education Development (GED) Test or has passed the California
High School Equivalency Examination. Copies of
transcripts and diplomas from colleges and universities will be included, unless extenuating circumstances exist, (college has disbanded or is foreign).

ATTACHMENT B
Atty. Rev. 2018

j. Credit Report and analysis of the applicant’s credit history. (not for fire applicants)

k. Military verification and/or Selective Service registrations, including applicable dates of service, branch of military, rank, and discharge status, etc.
l. Information obtained from previous backgrounds at other agencies. Motor Vehicle driving history from all states in which the applicant held an operator/driver's license during the past seven years, including a copy of the current license and proof of current insurance.
m. Drug and/or illegal substance use information, to the extent allowed by the ADA and case law.
n. Civil suits, judgments, and liens concerning an applicant who has been found liable for these.

Once the investigation has been completed, a final summary report is completed divided into the following sections: personal information, family history, current work history, prior work history, education, military/selective service history, credit history, driving and criminal history, references, neighbor/landlord history, drug history, and other public safety agency file reviews. Those areas that could be considered as grounds for potential disqualification are clearly enumerated. The individual documents and questionnaires are filed within the categories separated by dividers and submitted to the Department digitally. A scanned copy of every document Sintra Group obtained will be placed in a digital binder for the Agency's permanent storage, either after disqualification or after the POST Audit is conducted. Sintra Group does not make any recommendations regarding a candidate's suitability for hire in our final reports but will provide answers to any questions asked by Department Staff. We provide all documentation in secure electronic files transmitted by One Drive. If the City would like a hard copy of any of our documents, we are more than willing to provide it.

We are extremely confident that we can complete background investigations within the five-week timeframe of this RFP. To date in 2025, we conducted more than four hundred public safety background investigations. In 2023, Sintra concluded six hundred professional public safety backgrounds demonstrating that we are more than capable of meeting our deadlines and providing a quality work product. Sintra Group would be pleased to have the opportunity to provide SMPD and SMFD with the highest quality investigations within the agreed upon time frames.

Sintra Group also conducts Department Head and managerial personnel background investigations, both of which require a diverse skill set. Sintra

ATTACHMENT B
Atty. Rev. 2018

Group has investigators who were Captains or Assistant Chiefs with experience at the executive level. These individuals are responsible for conducting the in-person interviews and performing file reviews for these high- level positions. These investigations are available upon request and are not included in the cost estimate.

ATTACHMENT B
Atty. Rev. 2018

EXHIBIT “B”

PAYMENT

I. Progress Authorization

Written authorization to proceed from the City authorizes the Contractor to generate the not-to exceed cost of TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($225,000) in fees for all work.

IT
E
M

PROGRAM
COSTS
Cost Justification
(include formulas and a clear description of each item)

POLICE BACKGROUND EXAMPLE PER
Background

1. PERSONNEL
Sintra Group *estimated average 25 hours per
background at $80 per hour. Police support
backgrounds estimate 16 hours per background at $80
per hour. (See footnote for Lateral backgrounds costs
below and explanation in budget narrative.)

$2000.00
Investigators Investigators *estimated average 18 hours per background at $50 per hour.
$900.00
Supervising
Investigators
Supervising Investigators *estimated average 4 hours
per background at $55 per hour
$220.00
Admin Support Administrative staff *estimated averages 6 hours per background at $35 per hour.
$210.00
Project Manger Project Manager *estimated averages 3 hours per background at $57 per hour.
$171.00
Owner/Legal Owner which includes overhead costs, physical office space, insurance, reviews as needed and basic
office supplies.

$499.00
*These are estimates only. A job history with multiple
places of employment, previous background
investigations, and other complexities will add to the
time in order to complete and thorough investigation.

EST. TOTAL PROPOSED

COST PER BACKGROUND
$2000.00

Lateral Police Background Footnote: See budget narrative for explanation.

Investigators Investigators *estimated average 20 hours per background at $50 per hour.
$1,000.00
Supervising
Investigators
Supervising Investigators *estimated average 4.5 hours
per background at $55 per hour
$247.50

ATTACHMENT B
Atty. Rev. 2018

Project Manger Project Manager *estimated averages 3.5 hours per background at $57 per hour.
$199.50
EST. ADDITIONAL 3 INVESTIGATIVE

HOURSTOTAL PROPOSED COST PER LATERAL

BACKGROUND
$2,240.00

IT
E
M

PROGRAM
COSTS
Cost Justification
(include formulas and a clear description of each item)

FIRE BACKGROUND EXAMPLE PER
Background

1. PERSONNEL
Sintra Group *estimated average 20 hours per
background at $80 per hour (Firefighter est. avg. 20
hours Police Officer est. avg. 25 hours)

$1600.00
Investigators Investigators *estimated average 14 hours per background at $50 per hour.
$700.00
Supervising
Investigators
Supervising Investigators *estimated average 3.5 hours
per background at $55 per hour
$192.50
Admin Support Administrative staff *estimated averages 4.5 hours per background at $35 per hour.
$157.50
Project Manger Project Manager *estimated averages 3 hours per background at $57 per hour.
$171.00
Owner/Legal Owner which includes overhead costs, physical office space, insurance, reviews as needed and basic office
supplies.
$379.00
*These are estimates only. A job history with multiple
places of employment, previous background
investigations, and other complexities will add to the
time in order to complete and thorough investigation.

EST. TOTAL PROPOSED

COST PER BACKGROUND
$1600.00

F-2 UNIT OF SERVICE COST

Year

Proposed
Services
*Estimate
d Average
# of Hours
per
backgroun
d

Total Number
of Units
Contractor
can provide

Estimated
cost per
background

Extended
Cost per
year
1 Fire 20 20 or more $1,600.00 $32,000.00
1 Police Entry
Level 25 40 or more $2,000.00 $80,000.00

ATTACHMENT B
Atty. Rev. 2018

1 Police
Lateral 28 40 or more $2,240.00 $89,600.00
1 Police
Support 16 20 or more $1,280.00 $25,600.00

Total Not-To-Exceed Cost: $225,000

II. Invoice procedure.

A. Payment shall be at the conclusion of the Project based on the billable charges.

B. The Contractor shall present the bill for charges by the second day of the month.

C. The Contractor's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts

Under no circumstance shall the total of all payments to the Contractor exceed ninety percent (90%) of the maximum not-to-exceed cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A".

ATTACHMENT B
Atty. Rev. 2018

EXHIBIT “C”

INSURANCE REQUIREMENTS

Consultant 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 Consultant, his/her agents, representatives, or emplo yees. If the Consultant 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 Consultant.

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

B. Minimum Limits of Insurance

Consultant 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.

ATTACHMENT B
Atty. Rev. 2018

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.

C. Self-insured Retentions

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

The City may require the Consultant 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 Consultant 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 Consultant’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 Consultant'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 Consultant'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

ATTACHMENT B
Atty. Rev. 2018

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. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant 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 Ci ty has received a waiver of subrogation endorsement from the insurer.

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 for m with a
Retroactive Date prior to the contract effective date, the Consultant 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

Consultant 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 Consultant’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.

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Brett Fulgoni, Director of Public Works

DATE: March 3, 2026

SUBJECT: Adoption of a Resolution Authorizing a Sole Source Agreement with Genfare, LLC for Genfare Link Subscription

Description:

The City Council will consider adopting a Resolution authorizing the execution of a sole source agreement with Genfare, LLC for the implementation, activation, and ongoing support of Genfare Link open payment “tap -to-pay” capabilities, including the procurement of additional farebox equipment, to modernize the Santa Maria Regional Transit fare collection system.

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

RECOMMENDATION:

1. Adopt a Resolution authorizing a sole source agreement with Genfare, LLC for the implementation, activation, and ongoing support of the Genfare Link "tap -to-pay" capabilities for the Santa Maria Regional Transit electric fleet; and

2. Authorize the City Manager or designee to execute agreement and any necessary amendments.

BACKGROUND:

The City of Santa Maria is currently modernizing its transit fleet, transitioning from legacy cash and magnetic card -based systems to a state -of-the-art digital fare management platform. A significant portion of the fleet is already equipped with Genfare FastFare fareboxes, which are ha rdware-capable of supporting contactless "tap -to-pay" transactions.

DISCUSSION:

Eliminating Barriers to Transit
The primary goal of this initiative is to reduce barriers to riding transit in Santa Maria.

Currently, many riders must secure a physical bus pass at a specific location before they can board. By activating Genfare Link’s Open Payments module, riders can s imply "tap" their contactless credit or debit cards or mobile wallets (such as Apple Pay or Google Pay) directly on the FastFare farebox. This eliminates the need for pre-purchased media, 2 making transit more accessible to spontaneous riders, tourists, and residents who may not have easy access to pass-vending locations.

Alignment with State Initiatives and Regional Cooperation This project directly addresses the State of California’s Integrated Travel Project and Innovative Clean Transit initiatives, which aim to make tap -to-pay universal across the state. Santa Maria Regional Transit is working in alignment with regional partners, including the San Luis Obispo Regional Transit Authority and the Santa Barbara Metropolitan Transit District, to ensure a seaml ess payment experience for travelers throughout the Central Coast. Furthermore, the Santa Barbara County Association of Governments (SBCAG) has secured a grant specifically to make tap -to-pay capabilities universal throughout Santa Barbara County and will assist in funding this technology for Santa Maria.

Sole Source Justification
Genfare, LLC is the proprietary manufacturer of the City’s existing FastFare fareboxes and the developer of the Genfare Link back -office system. Because the "tap -to-pay" functionality is integrated into the existing proprietary hardware and software architecture, Genfare is the only entity capable of activating, licensing, and supporting these specific modules. Transitioning to a different vendor would require the costly replaceme nt of all existing onboard hardware and back-office infrastructure.

Alternative(s)

1. Do not approve the agreement.

This alternative would maintain the current fare payment system and delay the implementation of contactless payment options. Riders would continue to rely on cash and physical fare media, which may limit accessibility and convenience and could result in reduced ridership and customer satisfaction.

2. Seek a competitive procurement for a new fare collection system.

This option would require the removal and replacement of existing farebox hardware and back -office systems, resulting in significantly higher costs , longer implementation timelines, and potential service disruptions. This alternative would also forfeit the benefits of compatibility with regional partners and current state grant funding.

Fiscal Impact
Transit is an Enterprise Fund with its own funding sources separate and distinct from the City’s General Fund and can only be used to support transit-related projects. The Transit Division has a budget line item for Intelligent Transportation Systems Technology in the amount of $1,178,771 to complete this project. Further, some of the costs will be able to be charged to SBCAG’s 2025 Transit and Intercity Rail Capital Program (TIRCP) Grant which was awarded specifically to support the launch of tap-to-pay capabilities

The proposed agreement includes a on e-time implementation fee and annual subscription and support fees:

3  Hardware Procurement: $223,024.42 for nine additional FastFare units, including J1708 interface software licenses and installation
 Implementation Fee (Tier 2): $147,150.
 Annual Subscription (Years 1–3): Approximately $29,430 to $31,222 annually.  Software Support (Gold-Level): Included to ensure 24/7 technical assistance and system reliability.

Funding for this project will be partially offset by the SBCAG TIRCP grant intended for universal tap-to-pay implementation across Santa Barbara County.

Impact on the Community
Activating these capabilities will modernize Santa Maria’s transit system, align with state- wide mandates, and significantly improve the rider experience by removing the friction associated with physical fare media.

ATTACHMENT(S)

A. Resolution
B. Agreement
C. Hardware Procurement
D. Fees
E. Genfare Scope of Work

Attachment A

Page 1 of 3 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA,

AUTHORIZING A SOLE SOURCE AGREEMENT WITH

GENFARE, LLC FOR THE IMPLEMENTATION, ACTIVATION, AND
ONGOING SUPPORT OF THE GENFARE LINK "TAP-TO-PAY"

CAPABILITIES FOR THE SANTA MARIA REGIONAL

TRANSIT ELECTRIC FLEET

WHEREAS, the City of Santa Maria (the "City") is committed to modernizing its transit services under Santa Maria Regional Transit (SMRT) to improve accessibility and efficiency for all residents; and

WHEREAS, the City is transitioning its fleet toward the State of California's Innovative Clean Transit and Integrated Travel Project initiati ves, which emphasize the implementation of universal, contactless "tap-to-pay" technologies across the state; and

WHEREAS, tap-to-pay functionality is the most effective method for reducing barriers to transit by eliminating the requirement for riders to secure a physical bus pass before boarding; and
WHEREAS, SMRT's electric fleet is currently equipped with Genfare FastFare fareboxes that require activation of the "Open Payments" module within the Genfare Link platform to enable these contactless capabilities; and
WHEREAS, the City also operates diesel vehicles that are not yet ready for retirement and require the procurement of nine additional FastFare fareboxes to maintain system-wide fare parity and regional compatibility; and WHEREAS, Genfare, LLC is the proprietary manufacturer and sole provider of the existing FastFare hardware and the Genfare Link back-office system currently utilized by SMRT, making them the only source capable of providing integrated hardware, software activation, and ongoing gold-level technical support for this specific infrastructure; and WHEREAS, the Santa Barbara County Association of Governments (SBCAG) has secured a regional grant to make tap -to-pay capabilities universal throughout Santa Barbara County and will provide funding to SMRT for this modernization effort; and WHEREAS, regional partners including the San Luis Obispo Regional Transit Authority and the Santa Barbara Metropolitan Transit District are also deploying Genfare technologies to ensure a seamless inter-county transit experience.

Attachment A

Page 2 of 3 ends

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

///
SECTION 1. The City Council hereby authorizes the agreement and finds that Genfare, LLC is the sole source provider for the necessary hardware upgrades and software activations required for the existing SMRT fare management system; and

SECTION 2. The City Manager , or designee , is authorized to execute the agreement and any necessary amendments with Genfare, LLC (800 Arthur Ave, Elk Grove Village, IL 60007) for the following:

 Hardware Procurement: Nine FastFare units and associated licensing for a total of $223,024.42.
 Implementation: Genfare Link Tier 2 implementation for $147,150.  Annual Support: Three years of Genfare Link subscriptions and Gold -level Software Support starting at approximately $29,430 for Year 1.

SECTION 3. The City Council authorizes the use of SBCAG grant funds and applicable transit enterprise funds for these expenditures.

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.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 3rd day of March 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

Page 3 of 3 ends

Attachment B
1 GENFARE SUBSCRIPTION AND SERVICES AGREEMENT

THIS SUBSCRIPTION AND SERVICES AGREEMENT (the “Agreement”) is made effective as of ___________________, (“Effective Date”) by and between Genfare, LLC, a limited liability company, with its principal place of business place at 800 Arthur Avenue, Elk Grove Village, IL 60007 (“Genfare”) and The City of Santa Maria , a California Municipal Corporation, having a place of business at 1303 Fairway Dr, Santa Maria, CA 93455 (“Customer”), which may each be referred to as a “Party” or collectively as the “Parties”.

WHEREAS, Genfare offers a comprehensive digital fare management platform having various Service s and Software offerings; and
WHEREAS, Customer desires to obtain the Services and/or Software offerings as set forth in an applicable Attachment under this Agreement.

In consideration of the mutual covenants, promises, terms, and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound hereby, Genfare and Customer agree as follows:

1. Definitions

1.1 “Affiliated Users” means organizations, entities, affiliates or partners of Customer and to which access to the Services is approved and desired by Customer.

1.2 “Attachment” means the document that sets forth the subscription details for the Services and the Software, and any product specific terms applicable to Customer’s subscript ion, more specifically the Genfare Link Services Attachment and Payment Processing Services Attachment attached to this Agreement.

1.3 “Documentation” means certain Genfare documentation that describes the use, functions, features, or purpose of the Services or any component thereof, in any medium, which is delivered to Customer by Genfare under this Agreement, including Genfare's user manuals, training materials, program listings, data models, flow charts, logic diagrams, functional specifications, instructions, and complete or partial copies of the foregoing.

1.4 “Equipment” means certain equipment purchased by Customer from Genfare under a separate agreement which is to be used by Customer in connection with the Services.

1.5 “Initial Subscription Term” means the period of time specified on an applicable Attachment.

1.6 “Intellectual Property Rights” means patent, copyright, trade secret, know-how, trademark, trade dress rights, and any other intellectual property or proprietary rights in the Services, Software, Equipment and all software, equipment, processes and facilities utilized by or on behalf of Genfare to provide the services contemplated herein.

1.7 “Permitted Users” means (a) Customer’s employees (including temporary employees and contract employees) authorized by Customer to access and use the Services on Customer’s behalf, and (b) Customer’s service providers that need to access the Services, provided such third parties are subject to written restrictions comparable to the restrictions on use in this Agreement and may only use the Services for purposes of providing Services to Customer (provided that the acts and Attachment B
2 omissions of such third parties shall be deemed the acts and omissions of Customer) and (c) for Customers whose SaaS Services include the “Organizational Module”, the applicable Affiliated Users authorized for such access in an Attachment.

1.8 “Renewal Subscription Term” means any extension to this Agreement, commencing upon the expiration of the Initial Term or any extensions thereto, as provided in this Agreement or otherwise in an Attachment.

1.9 “SaaS” means the software as a service subscribed to by the Customer. The SaaS Services being subscribed to by Customer are more specifically detailed in the Services Attachment.

1.10 “Services” means the SaaS listed on an Attachment and Support.

1.11 “Software” means Genfare’s proprietary software that is to be installed on Customer’s computer system, including Network Manager, and/or the Garage Data System, and/or software that may be embedded on the Equipment.

1.12 “Subscription” means the Customer’s payment to access, use and obtain the benefit of the Services.

1.13 “Subscription Fees” means the fees set forth in an Attachment for providing the Services.

1.14 “Subscription Term” means the Initial Subscription Term together with any Renewal Subscription Terms.

1.15 “Support” means those support services to be provided by Genfare pursuant to and in accordance with the terms and conditions set forth herein, as more particularly described in Exhibit A attached hereto.

1.16 “Term” means the term of the Agreement which begins on the Effective Date and continues until:
(i) this Agreement is terminated by a Party as provided herein or (ii) this Agreement expires as provided herein, whichever is earlier.

2. Access Rights, License and Services

2.1 Subject to the terms of this Agreement and during the Subscription Term, Genfare grants Customer and its Permitted Users a limited, non-exclusive, non-transferable, revocable, non- sublicensable right to access and use the Services solely for Customers internal business purposes.

2.2 Subject to the terms of this Agreement , Genfare grant s Customer a n on-exclusive, non - transferable, revocable, non-sublicensable license to install and/or use the Software solely for Customers internal business purposes.

2.3 In the event that Customer desires to add services and/or increase its scope of use of the Services and/or add Permitted Users, Customer may do so by purchasing the applicable access rights from Genfare at Genfare’s then current rates or as otherwi se specified in the applicable Attachment. In such event, such Attachment shall be modified in writing to reflect the new scope and Subscription Fee changes agreed to by the Parties. Notwithstanding anything herein to the contrary, such modification to an Attachment can be evidenced through email or confirmation.

Attachment B
3 2.4 Customer’s rights granted under this Agreement may not be leased, sublicensed or otherwise transferred or made available for use by unaffiliated third parties, in whole or in part, by Customer without Genfare’s prior written consent or as expressly permitted in this Agreement.

Customer shall not use or attempt to use the Services in a manner that would exceed the scope of the rights granted under this Agreement or facilitate any such unauthorized access for any third party.

2.5 Customer shall not without the express written consent of Genfare: (a) reverse engineer, reverse assemble, decompile, or disassemble any technology underlying the Services and Software; (b) otherwise attempt to discover the source code to the Services or Software ; (c) translate or migrate the Services or Software into another format, language, or hardware platform; (d) make the Services or Software available to anyone other than Permitted Users; (e) alter or remove any copyright, trademark or other proprietary notices on or within the Services , Software or Documentation; (f) create derivative works based upon the Services or Software in whole or in part; (g) develop or modify any software based on ideas, processes or materials incorporated into the Services or Software, or (h) permit any third party to do any of the foregoing.

2.6 Genfare may audit Customer’s use of the Services or Software to verify compliance with the terms of this Agreement. Customer agrees to cooperate with such audit and provide Genfare with reasonable assistance and access to information. If the audit reveals an underpayment for Services by Customer, Customer shall pay Genfare all fees actually due and pay all costs and fees for such audit.

3. Payment

3.1 Fees. Customer shall pay Genfare the fees set forth in Attachment as set forth herein. Such fees may include the following:

3.1.1 Implementation Fee. This fee is a one -time fee for the set -up and implementation of the Services.

3.1.2 Annual Subscription Fees . This fee is payable annually in advance for Customer’s access to the Services. The annual Subscription Fees for the first year of the Subscription Term will be invoiced upon the commencement of the Subscription Term. The annual Subscription Fees for all subsequent years of the Subscription Term will be payable prior to the anniversary date of the start of the Subscription Term.

3.1.3 Transaction Fees. Customer agrees that Genfare will invoice the amount due and owing on at least a monthly basis. For the avoidance of doubt, Transaction Fees are not subject to the automatic yearly inc rease of three percent (3%) as set forth in Section 3.5 of the Agreement, but that Genfare reserves the right to increase any fees for a subsequent Renewal Subscription Term in its sole discretion by providing Customer at least sixty (60) days’ notice before the end of the then-current Subscription Term.

3.1.4 Gateway Fees and Processing Fees. Customer agrees to pay Genfare the Gateway Fees and Processing Fees included as part of the Transaction Fees. Genfare reserves the right to change its Gateway Fees and/or Processing Fees after the Initial Subscription Term.

Genfare will notify the Customer of changes to Genfare’s Gateway Fees and/or Processing Fees at least thirty (30) days prior to the end of Customer’s then-current term.

Notwithstanding anything to the contrary contained herein, Genfare reserves the right to Attachment B
4 modify the Gateway Fees and/or Processing Fees upon thirty (30) days prior written notice to Customer to pass through price increases from Third Party Providers, payment networks and other third party service providers.

3.1.5 License Fee . This fee is a one -time fee for the Customer to install and/or use the Software in accordance with this Agreement.

3.1.6 Fees increase due to expansion of Services. In the event that Customer increases the scope of Services, Genfare shall invoice Customer the applicable fees as identified on the updated Attachment.

3.2 Other Fees. With respect to other fees specified in an Attachment, such fees shall be invoiced as set forth in Attachment or, if Attachment is silent, invoiced as occurred on a monthly basis.

Subject to any ter ms specified in Attachment, Genfare may increase such other fees once in any twelve (12) month period upon thirty (30) days’ prior written notice to Customer.

3.3 Taxes. Fees stated in Attachment do not include applicable taxes. Unless Customer is a tax exempt entity and provides Genfare with reasonable documentation demonstrating tax exempt status, Customer agrees to bear and be responsible for the payment of all taxes, except for taxes based upon Genfare’s income, including but not limited to, all sales, use, rental receipt, personal property, customs duties or levies or other taxes, which may be le vied or assessed in connection with this Agreement. Customer shall pay such tax when due or reimburse Genfare as applicable. If any tax is required to be paid by Genfare, the full amount of such tax, including any interest and penalties, will be invoiced to Customer, whether or not this Agreement is then in effect, and promptly paid by Customer.

3.4 Invoice Terms. Customer shall pay in full all amounts owed in an invoice within thirty (30) days from the invoice date except as otherwise provided in an Attachment. If Genfare does not receive payment by the payment date, Genfare in its sole discretion may impose a late payment charge equal to the lesser of (a) one and one-half percent (1.5%) per month or (b) the maximum rate allowed by law beginning thirty-one (31) days after the invoice date, and/or Genfare may suspend the Services for non-payment.

3.5 Fee Increases. During the Subscription Term, unless the Parties agree otherwise in writing, the annual subscription or license fee shall automatically increase by three percent (3%) each year; provided, however, that Genfare reserves the right to increase any fees for a subsequent Renewal Subscription Term in its sole discretion by providing Customer at least sixty (60) days’ notice before the end of the then-current Subscription Term.

4. Term; Termination

4.1 This Agreement shall be in effect for the Term (as defined above).

4.2 Unless otherwise specified in an Attachment, at the end of the Initial Subscription Term and each Renewal Subscription Term, the Subscription shall automatically renew for an additional one (1) year period unless either Party notifies the other that this Agreement will not renew at least forty-five (45) days prior to the expiration of the then-current Subscription Term.

4.3 Either Party may terminate this Agreement or a Subscription, including any and all access and usage rights for the Services provided herein, for a material breach by the other Party that is not cured within thirty (30) days after written notice of such material breach.

Attachment B
5 4.4 In addition to the termination provisions contained herein, the licenses granted in Section 2.2 of this Agreement shall automatically terminate if: (a) any of the Equipment or Software is sold or transferred to a third party or moved outside of the United States; or (b) the Software is no longer used in connection with the Services or the Equipment.

4.5 Genfare may immediately terminate this Agreement or a Subscription, or suspend its performance thereunder, if (i) Customer becomes insolvent or bankrupt or ceases to do business, (ii) Customer breaches its obligations under the provisions of Section 5 or 6 below, (iii) the provision of the Services , or any portion thereof, to Customer by Genfare is, in Genfare’s sole opinion, no longer commercially viable , (iv) the Services are deemed, or Genfare reasonably believes the Services , or any portion thereof, violate an applicable local, state, or federal law or regulation , or ( v) Genfare has a reasonable belief that the continued provision of Services puts Genfare, or its systems at any operational or security risk.

4.6 Genfare may immediately terminate this Agreement, or suspend its performance hereunder if (i) its agreement with the gateway service provider or the payment processor is suspended or terminated for any reason, (ii) it or any of its vendors or service providers experiences a force majeure, (iii) it is required to due to the formal or informal action or request of a regulatory or payment card network, or (iv) Genfare reasonably believes such action is necessary to prevent material harm due to fraud, violations of applicable laws or regulations, breach of payment card network rules, or other causes.

4.7 Unless Genfare terminated this Agreement pursuant to Section s 4.2 or 4.4, Customer may continue to utilize the Services for a transition period of up to ninety (90) days after termination of this Agreement, subject to payment of the applicable Subscription Fees (the “Transition Period”). Should Customer require further assistance during the Transition Period, Genfare may, in its sole discretion, offer additional transition services at Genfare’s then -current rates.

In any event, upon request from Customer, Genfare shall reasonably cooperate with Customer to export Customer’s data from the Services in a delimited TXT file during the Agreement and for a period of up to sixty (60) days after termination.

5. Confidential Information

5.1 “Confidential Information” means any tra de secret or other information of Genfare or Customer, whether of a technical, business, or other nature, which is disclosed by one Party (“Discloser”) to the other Party (“Recipient”) orally or in writing and that (a) is marked “confidential” or (b) is of a nature that a reasonable person would understand to be confidential.

Confidential Information does not include any information that: (a) was known to Recipient before receiving it from the Discloser; (b) is independently developed by Recipient without use of or reference to any Confidential Information of the Discloser; (c) is received from a third party who had a lawful right to disclose such information (without corresponding confidentiality obligations) to it; or (d) is or becomes part of the public domain through no fault or action of Recipient. Genfare acknowledges that the City is a public agency subject to the Public Records Act and that the City will comply with the production requirements of the Public Records Act.

5.2 Recipient will: (a) use the Confidential Information of the Discloser solely for the purpose for which it is provided; (b) not disclose Confidential Information to competitors of the Discloser, (c) not disclose such Confidential Information to a ny third part y, and (d) protect su ch Confidential Information from unauthorized use and disclosure to the same extent that it Attachment B
6 protects its own Confidential Information of a similar nature, but using no less than a reasonable degree of care in consideration of the nature of the Confidential Information. However, Recipient may disclose Confidential Information to its employees, agents or contractors who need to know such Confidential Information in order to obtain or provide the Services hereunder so long as Recipient limits the scope of di sclosure of Confidential Information to only that which is necessary under the circumstances, such third parties are subject to written confidentiality obligations substantively similar to this Agreement and are restricted to using the Confidential Information for the sole purpose of obtaining or providing the Services. Each Party will be responsible for any improper disclosure of Confidential Information by such Party’s employees, agents, or contractors.

5.3 Recipient may disclose Confidential Information of the Discloser to the extent required to satisfy any legal requirement of a competent governmental or regulatory authority, provided that (to the extent permitted by law) it promptly advises the Dis closer prior to making such disclosure and provides Discloser a reasonable opportunity to object to such disclosure or take such other action as it considers appropriate to protect the Confidential Information.

5.4 Within thirty (30) days of the termination of this Agreement, Recipient will return or destroy (and provide certification of such destruction) any materials in any medium that contains or refers to Discloser’s Confidential Information. Subject to the confidentiality obligations herein, Recipient may retain copies of Discloser’s Confidential Informat ion to the extent required to document its performance or for compliance with applicable laws or regulations.

5.5 Customer shall take all necessary steps to ensure that the provisions of this Section are not violated by any employee, service provider, Permitt ed User or any other person under Customer’s control or in its service.

6. Ownership; Restricted Rights

6.1 The Parties agree that, a s between Customer and Genfare, Genfare retains ownership of and any and all of all Intellectual Property Rights and any information, materials, developments or deliverables created by Genfare and/or its licensors under this Agreement that are not expressly granted to Customer in this Agreement. If possible, Customer shall permanently erase or otherwise destroy the Software contained therein before recycling, discarding, or disposing of any media or hardware that contain any installed Software.

6.2 Customer retains ownership of all Customer specific data entered into and /or generated by Customer and its Permitted Users’ use of the Services (the “Customer Data”) . Provided, however, Customer shall have no rights to any data in Genfare’s proprietary format, but Genfare shall reasonably cooperate with Customer to export Customer’s data from the SaaS in a delimited TXT file at Customer’s request.

6.3 Customer hereby grants Genfare a limited license to aggregate and/or anonymize the Customer Data during the Term of this Agreement and an unlimited, perpetual and irrevocable license to use, reproduce, and distribute such aggregated and/or anonymized Customer Data for any legal purpose. Notwithstanding the foregoing, Genfare s hall own all usage data generated by the Services.

6.4 Certain features of the Services may require the use of Customer’s name, logo, trademarks, and/or tradenames (“Customer Branding”). Should Customer’s use of the Services require Customer Branding, Customer grants Genfare a license to reproduce, copy, distribute and use Attachment B
7 such Customer Branding in Genfare’s provision of the Services. By submitting, posting or displaying Customer Branding through the Services or to Genfare, Customer grants Genfare a limited, worldwide, royalty-free, and non-exclusive license to use, copy, encode, store, archive, reproduce, edit, adapt, modify, translate, transmit, publish, publicly display, and distribute the Customer Branding for the limited purpose of providing Customer the Services during the Term of this Agreement and to store any archived instances of Customer Branding according to Genfare’s then -current data management policy. CUSTOMER REPRESENTS AND

WARRANTS THAT CUSTOMER HAS THE RIGHT TO LICENSE THE CUSTOMER

BRANDING TO GENFARE, AND IN THE EVENT CUSTOMER DOES NOT HAVE SUCH

RIGHTS, CUSTOMER AGREES TO INDEMNIFY AND DEFEND GENFARE AGAINST

CLAIMS ARISING OUT OF THE USE OF SUCH CUSTOMER BRANDING, EXCEPT TO

THE EXTENT THAT SUCH CLAIM IS BASED ON A MODIFICATION OR ALTERATION MADE BY GENFARE.

6.5 Certain portions of the Services may be branded with Genfare’s or its vendors’ or service providers’ trademarks, logos and copyright notices. Customer agrees that it will not hide, remove, modify or otherwise change any such trademarks, logos or notices.

7. Warranties; Disclaimers

7.1 Each Party warrants that it has the right and power to enter into this Agreement and to perform its obligations herein. Genfare hereby warrants that it has the right to provide the Services and grant the licenses to Customer in the manner provided in this Agreement.

7.2 Genfare warrants that the Services and Software shall materially conform to the specifications in the then-current Documentation for a period of ninety (90) days after Genfare first makes the Services and Software available for Customer’s use. Genfare’s sole obligation under this warranty (which shall be Customer’s exclusive remedy) shall be to use reasonable efforts to correct demonstrated material defects in the Services or Software, and supply Customer with access to a corrected version of such Services or Software, or a commercially reasonable workaround as soon as practicable after Customer has notified Genfare of such defects.

Genfare’s warranty obligations hereunder shall not apply to the exten t the nonconformity results from: (a) modifications to the Services or Software by anyone other than Genfare or its contractors, (b) use of the Services or Software contrary to the terms of this Agreement or the instructions in any related materials, or (c) the combination of the Services or Software with any third party hardware or software not expressly recommended or approved by Genfare.

Genfare does not warrant any third party hardware or software utilized to deliver the Services, but will pass through any third party vendor’s warranties to the extent permitted by the vendor.

If Genfare determines that a malfunction or error is due to the hardware or software of Customer or a third party, or out of date or unsupported versions of the Software, Genfare will so inform Customer, and it will be Customer’s responsibility to obtain and pay for any repairs, updates or modifications required. Any of the above malfunctions will not relieve Customer of any of its obligations hereunder.

7.3 EXCEPT AS SPECIFICALLY SET FORTH ABOVE, TO THE MAXIMUM EXTENT ALLOWED BY LAW, THE SERVICES AND SOFTWARE ARE PROVIDED “AS IS.” TO

THE MAXIMUM EXTENT ALLOWED BY LAW, GENFARE AND ITS LICENSORS ,

VENDORS AND SERVICE PROVIDERS DO NOT MAKE ANY EXPRESS OR IMPLIED

WARRANTIES, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF DESIGN,

MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR

NONINFRINGEMENT, OR ARISING FROM A COURSE OF DEALING OR USAGE OF Attachment B
8 TRADE, AND GENFARE EXPRESSLY DISCLAIMS ANY AND ALL SUCH WARRANTIES.

7.4 GENFARE DOES NOT WARRANT THA T: (A) OPERATION OF ANY OF THE

SERVICES OR SOFTWARE SHALL BE UN INTERRUPTED OR ERROR FREE, (B)

FUNCTIONS CONTAINED IN THE SERVICES AND SOFTWARE SHALL MEET THE CUSTOMER’S REQUIREME NTS, OR (C) THE SERVICES OR SOFTWARE SHALL

OPERATE IN COMBINATION WITH (I) OTHER HARDWARE OR SOFTWARE OTHER

THAN HARDWARE AND SOFTWAR E EXPRESSLY APPROVED OR RECOMMEND BY GENFARE IN WRITING, OR (II) UNSUPPORTED VERSIONS OF THE SOFTWARE.

7.5 Customer acknowledges and agrees that Genfare and its licensors are not responsible for: (i) the accuracy or integrity of any data submitted by Customer or its Permitted Users, (ii) the performance of Customer’s or its Permitted User’s equipment, (iii) delivery of services or connectivity provided by third parties to Customer and its Permitted Users, even if such third parties were identified by Genfare, or (iv) any downtime, loss or corruption of data that occurs as a result of transmitting or receiving data or viruses via the Internet.

8. Infringement Remedy

8.1 Should the Services, become, or in Genfare’s opinion be likely to become, the subject of a claim of infringement of a patent, trade secret or copyright, Genfare may, in its sole discretion, (a) procure for Customer, at no cost to Customer, the right to continue to use the Services, (b) replace or modify the Services, at no cost to Customer, to make them non-infringing, provided that substantially the same functionality is provided by the replacement or modified Services, or (c) if in Genfare’s judgment the right to continue to use the Services cannot be reasonably procured or the Services cannot reasonably be replaced or modified, terminate the subscription to use all or just the potentially infringing Services and grant Customer a pro-rated refund on any advance Subscription Fees paid for such potentially infringing portions of the Services for the remainder of the Subscription Term.

8.2 Customer shall forfeit all rights under this Section 8 if it alters or modifies the Services in any manner, or if such infringement is based upon the combination of the Services with any third party hardware or software.

8.3 Genfare will defend, indemnify, and hold Customer harmless from and against any loss, cost, and expense that Customer in connection with a third party claim that use of the Services infringe any United States patent issued as of the Effective Date of this Agreement or any trade secret or copyright of others. G enfare’s obligations under this indemnification are expressly conditioned on the following:
(a) Customer must promptly notify Genfare in writing of any such claim; (b) Genfare or its vendor or service providers, as applicable, must have sole control of the defense of any such claim and of all negotiations for its settlement or compromise; and (c) Customer must reasonably cooperate with Genfare to facilitate the settlement or defense of the claim.

8.4 Notwithstanding anything herein to the contrary, Genfare shall have no liability for any claim of infringement based on the use or combination of the Services or Licensed Software with software or other materials not provided or expressly approved by Genfare.

9. Limitation of Liability
Attachment B
9 9.1 IN NO EVENT WILL CUSTOMER OR A GENFARE PARTY BE LIABLE TO THE PARTY

FOR SPECIAL, INDIREC T, INCIDENTAL, CONSE QUENTIAL, PUNITIVE, OR

EXEMPLARY DAMAGES IN CONNECTION WITH THE SERVICES OR SOFTWARE

OR THE PERFORMANCE O R NONPERFORMANCE OF SERVICES OR SOFTWARE,

REGARDLESS OF THE THE ORY OF LIABILITY, EV EN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSI BILITY OF SUCH DAMAG ES. IN NO EVENT WIL L A

GENFARE PARTY BE LIABLE TO CUSTOMER FOR ANY LOSS OF REVENUES, LOSS

OF PROFITS, LOSS OF BUSINESS, OR LOSS OF DATA, ARISING OUT OF CUSTOMER’S U SE OF, OR INABILITY TO USE, OR THE PERFORMANCE O R NONPERFORMANCE OF, THE SERVICES OR THE SOFTWARE. “GENFARE PARTY”

MEANS ANY GENFARE OR ANY LICENSOR, VENDOR OR SERVICE PROVIDER OF

GENFARE, INCLUDING WITHOUT LIMITATION ANY GATEWAY SERVICE

PROVIDER, PROCESSING SERVICE PROVIDER, ACQUIRING BANK, OR PAYMENT

NETWORK, OR ITS OR THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, OR AFFILIATES.

9.2 IN NO EVENT SHALL THE MAXIMUM AGGREGATE LIABILITY OF THE GENFARE

PARTIES UNDER THIS AGREEMENT EXCEED THE FEES PAID BY CUSTOMER DURING THE TWELVE (12) MONTHS PRECEDING THE DATE ON WHICH THE CLAIM FIRST ACCRUED.

10. Miscellaneous

10.1 Conflicts. In the event of a conflict between the terms contained herein and the terms in an Attachment or Exhibit A , the order of pre cedence is: Attachment, the main body of the Agreement, Exhibit A.

10.2 Public Announcements. Customer grants Genfare and its affiliates the right to use Customer’s name, logo, trademarks and/or trade names in press releases, product brochures , internal reports, shareholder reports, proposals and demos indicating that Customer is a customer of Genfare. All other public statements or releases shall require the mutual consent of the Parties.

10.3 Independent Contractor . The relationship of the Parties hereunde r is that of independent contractors, and neither Party shall be considered to be a partner, joint venture, employer or employee of the other under this Agreement. This Agreement creates no agency in either Party, and neither Party has any authority whatso ever to bind the other Party in any transaction or make any representations on behalf of the other Party.

10.4 Survival. Neither expiration nor termination of this Agreement shall terminate those obligations and rights of the Parties pursuant to provisions of this Agreement which by their express terms are intended to survive and such provisions shall survive the expiration or termination of this Agreement. Without limiting the foregoing, the respective rights and obligations o f the Parties under Sections 2.5, 3.4, 4.6, 5, 6, 7 , 9 and 10 shall survive the expiration or termination of this Agreement regardless of when such termination becomes effective.

10.5 Amendment. No change or modification of this Agreement shall be valid unless in writing and signed by all Parties to this Agreement ; provided, however, an Attachment can be updated through written confirmation of such terms through written or electronic correspondence.

Attachment B
10 10.6 Notice. Any notice or demand which is required or provided to be given under this Agreement shall be deemed to have been sufficiently given and received for all purposes when delivered by hand, confirmed facsimile transmission, or nationally recognized overnight courier, or five days after being sent by certified or registered mail, postage and charges prepaid, return receipt requested, to the addresses set forth in the opening paragraph with “Attn: President”. Each Party may modify its notice address or “Attn:” Party by providing written notice in the manner described in this Section 10.6.

10.7 Assignment. Neither Party may assign this Agreement, or any of its interest herein, without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed; provided, however, that no such prior approval shall be required for an assignment in connection with a sale of all or substantially all of a Party’s business related to the subject matter of this Agreement or any merger, sale of a controlling interest or other change of control of such Party. This Agreement shall apply to and bind the successors and permitted assigns of the Parties.

10.8 Force Majeure. Neither Party shall be in default or otherwise liable for any delay in or failure of its performance under this Agreement if such delay or failure arises by any reason beyond its reasonable control, including any act of God or the common enemy or earthquakes, floods, fires, epidemics, riots, telecommunications delays, failure of electrical power, lightning, national emergency, war, action of court or public authority, terrorist act, military action, civil disturbance, internet outages, failures or delay in transportation or communications. The Parties will promptly inform and consult with each other as to any of the above causes which in their judgment may or could be the cause of a delay in the performance of this Agreement.

10.9 Waiver. The waiver by either Party of a breach or violation of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any subsequent breach of the same or any other provision hereof.

10.10 Insurance. Genfare shall maintain insurance coverage consistent with it s existing programs and the requirements of any applicable law. Further, Genfare shall include Customer as an additional insured on its Commercial General Liability Policy pursuant to Genfare’s standard endorsement.

10.11 Severability. In the event any provision of this Agreement is held to be unenforceable for any reason, the unenforceability thereof shall not affect the remainder of this Agreement, which shall remain in full force and effect and enforceable in accordance with its terms. With respect to any unenforceable provision, the applicable arbitrator or court shall deem the provision modified to the extent necessary, in such adjudicator’s opinion, to render such term or provision enforceable, and the rights and obligations of the Parties shall be construed and enforced accordingly, preserving to the fullest permissible extent the intent and agreements of the Parties set forth herein.

10.12 Entire Agreement . This Agreement supersedes all previous discussions, negotiations, understandings and agreements between the Parties with respect to its subject matter, and constitutes the entire Agreement between the Parties. This Agreement is a collaborative drafting effort and the provisions of the Agreement shall not be construed against a Party as the purported drafter. This Agreement may be executed in one or more counterparts, with signatures delivered by fax or emailed PDF documents, all of which counterparts when taken together shall comprise one instrument.

Attachment B
11 10.13 Interpretation. This Agreement and its Attachments shall be interpreted in accordance with the laws of the State of California.

10.14 Jurisdiction and venue of all disputes over the terms of this Agreement and its Attachments shall be in the State of California.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above.

GENFARE CITY OF SANTA MARIA, a California
Municipal Corporation

By: ____________________________ By: ______________________________

Name: Eric Kaled___________________ Name: ______________________________

Title: President_____________________ Title: ______________________________

Date: ______________________________ Date: ______________________________

Attachment B
12 GENFARE LINK SERVICES ATTACHMENT

SaaS Services Genfare Link, applicable modules are checked:
☒ Admin Link
☒ Report Link
☒ Fare Link
☒ Customer Care Link
☒ Inventory Link
☒ Asset Link (requires latest generation Genfare hardware) ☒ Card Check
☒ Invoice
☒ Real Time Link (requires latest generation Genfare hardware) ☒ Account Based (additional fee)
☒ Open Payment (additional fee)
☒ e-Fare (additional fee)
☒ Organizations / Affiliated users (additional fee)
Implementation Fee $ 164,700 payable as follows: 50% upon signing this Agreement and 50% at user acceptance testing (UAT).

Annual Subscription Fees
$32,940 Year 1
$33,928 Year 2
$34,946 Year 3
Software Support Fees
$12,250 Year 1
$12,617 Year 2
$12,996 Year 3
Software Provided Not applicable
Software License Fee Not applicable
Payment Terms Implementation Fee will be payable within thirty (30) days of execution of this Agreement.

Annual subscription fees will be paid prior to the beginning of each subscription year.

Annual Software Support fees will be paid prior to the beginning of each subscription year.

Software License Fee shall be paid prior to the Software being delivered to Customer.

Subscription Start Date The date Genfare makes the Services available for user acceptance testing.

Initial Subscription Term 3 years from Subscription Start Date Contracted Number of Affiliated
Users, not to exceed 25
Affiliated Users List to be provided at a later date (if applicable)

Attachment B
13 PAYMENT PROCESSING SERVICES ATTACHMENT

Payment Processing Services ☐ e-Fare processing services ☐ Mobile ticketing processing services
☐ Administrative Point-of-Sale (APOS) processing services ☐ Ticket Vending Machine (TVM) processing services
☒ Farebox processing services
☐ Validator processing services
Open Payment Implementation
fee No fee
Subscription Term Customer’s subscription to the Payment Processing Services listed above and further described in Exhibit B shall run concurrently with customer Term for the respective services identified on the Genfare Link Services as described in the above Attachments and in the Agreement.

Subscription Fee No fee
Transaction Fees Transaction fees as follows:
$0.05 + 5.5% of each transaction processed through the SaaS Services.

Payment Terms Implementation Fee will be payable within thirty (30) days of execution of this Agreement.

Annual subscription fees will be paid prior to the beginning of each subscription year.

Transaction Fees are payable in accordance with the terms of the Agreement.

Payment Processor Chase Paymentech, processor provided by Genfare and subject to change.

Attachment B
14 EXHIBIT A
Service Level Agreement

1. Scope of Work

Support Levels Gold
Portal Licenses 6 users
Access Knowledge Base, Case Management, Assets and Training Support Hours 24/7
Email and Phone Support Included
Online Training Up to 6 users
Software Updates Included
Fare Structure* 1 per year
3-Day System Review** Not included
Managed Service Not included

*Fare structure changes require a minimum of six (6) weeks’ notice with the fare structure checklist completed and provided to Genfare’s team. Requests where Genfare receives less than

2. Definitions

“Error” means any situation where the Services or the Software (a) does not operate in accordance with the Documentation; and/or (b) does not produce correct results; and/or (c) encounters any other problems or issues set out in the chart in Section 6.4 of this Exhibit.

“Resolution” or “Resolve” refers to actions taken to correct or provide a reasonable work-around for a reported issue by delivering new code or otherwise restoring the Services to a functional state. In the case of a work-around as a solution, Genfare shall continue working to more permanently resolve the Error until such Error is fully resolved.

“Standard Service Hours” are defined as Monday through Friday beginning at 8:00am and ending at 5:30pm Central Time, excluding federal, Customer, and Genfare holidays.

The Holiday List is updated annually and can be found on the Customer Portal within the knowledge base searchable by: Genfare Holidays.

“Telephone Support” means an oral responses, "Email Support" means an electronic response, and "Customer Portal" means and electronic response by Genfare's Customer Care Representatives and Technicians to questions regarding (a) the functions of the Services, (b) the steps for Customer to follow in operating the Services, (c) the proper format for the input of Customer’s data or information, (d) steps to improve the efficiency of operation of the Services, (e) the interface of the Services, and any related system in Customer’s current technical environment, (f) the interface of the Services and other software, (g) the Documentation relating to the Services, and/or (h) changes to the operation of the Services due to the provision of a maintenance and/or support service to Customer.

3. SaaS or Software patches and upgrades

3.1 Genfare shall (i) develop, test, provide and/or implement all applicable “patches” or updates that become necessary to remedy the Errors in the Services or the Software and Attachment B
15 (ii) provide all version updates, software patches and error corrections necessary for the Services and the Software to maintain functionality.

3.2 All SaaS/Software updates and/or upgrades are based on the minimum hardware requirements needed for such update and/or upgrade.

3.3 Genfare strongly recommends the customer utilize a test environment for all software updates. Customer is agreeing to assume all risk and liability associated with accepting an update in their production environment.

3.4 Applicable Software updates will be made available to Customers as they are released.

Customer’s involvement may be required as Genfare may need access to certain Customer equipment or systems to effectuate updates.

3.5 For Errors in the Software, prior to implementing any patches or upgrades, Genfare shall first notify Customer’s IT department in advance to schedule a time and date for the installation. Depending on the scope of the change, Customer may wish to back-up their Services prior to the software upgrade.

3.6 Genfare Support includes new features in modules subscribed to by the Customer, but does not include modules not subscribed to or new modules developed by Genfare.

4. Exceptions

4.1 The provisions of this Exhibit A shall not apply to issues arising from:
(a) the negligence of Customer, its customers, employees, or representatives, (b) any loss or damage resulting from a force majeure event (as set forth in Section

10.8 of this Agreement),
(c) alteration, misuse, or abuse of the Services or Software, (d) use of the Services or Software contrary to the terms of this Agreement, or the instructions in any Documentation provided to the Customer, (e) the combination of the Services or Software with any third party hardware or software not expressly recommended or approved by Genfare, (f) any improper installation, operation or maintenance of the Services or Software by the Customer or a third party, including use of non-OEM parts in the Services and a Customer’s failure to promptly install all patches, error corrections and updates provided by Genfare,
(g) Customer’s failure to report a known Error in a timely manner (no more than seven (7) business days from identification of such Error), or (h) a Genfare-supplied hardware failure (except to the extent that such hardware is under warranty).

4.2 Genfare will not provide Support or any associated services for the Customer’s Oracle database environment. Oracle database adjustments, enhancements and/or recommendations will be communicated and passed to Customer for implementation.

Genfare is not responsible for executing updates to maintenance for the Customer’s network manager/Oracle database virtual environments, operating systems, database version, database allocation or similar Customer-provided resources.

5. Genfare and Customer Duties

Although Genfare shall be responsible for the Support, Customer shall be the Party that initially responds to all Errors. Genfare agrees to assist the Customer, as required and contracted by the Customer.

5.1 Genfare SHALL:

Attachment B
16 (a) Provide remote support for the Services and Software, as required by this Agreement;
(b) Respond to and Resolve any Errors in accordance with the chart in Section 6.4; (c) Perform the Support in a competent manner by qualified personnel; (d) Ensure that the Services or Software will operate and function with updates, upgrades, modifications or fixes, that are provided by Genfare, including without limitation, software patches or bug fixes;
(e) Ensure that Genfare personnel or contractors are available to carry out the obligations of Genfare hereunder;
(f) Provide contact information for Genfare personnel, available to receive notices of Errors under Section 7.2 of this Exhibit; and
(g) Notify Customer of any identified indication of deliberate tampering or patterns of damage not consistent with normal usage.

5.2 Genfare SHALL NOT:
(a) Be responsible for any malfunction of Equipment, servers, computer equipment, communications infrastructure, cabling, networking capability or any other element or Errors that are not attributable to the Services or Software; or (b) Pay any claim pertaining to work done by or on behalf of Customer for removing modules or Equipment to be shipped to Genfare for repair.

5.3 Customer SHALL:
(a) Provide any information reasonably requested by Genfare to understand and describe an Error in order to allow Genfare to carry out its duties hereunder; (b) Provide any access to Equipment or systems as reasonably requested by Genfare to provide patches or updates to Software;
(c) Perform all preventative maintenance of Software and Equipment according to the Documentation; if asked, Customer must provide a history of preventative maintenance and support of the system as part of the terms of keeping the full fare collection system in good working order.
(d) Be entitled to use any third party to carry out all or part of the hardware maintenance of the Services, or to carry out such maintenance itself (Genfare shall have no obligation to correct Errors attributable to such third-party or self- performed maintenance under this Exhibit A);
(e) Make all requests for support through a Customer’s representative, or Customer’s representative’s substitute(s) or designee(s);
(f) Provide appropriate personnel and support as is necessary for Genfare personnel to perform their duties, such as IT technical support, communications support, revenue service support and security personnel, flaggers and other proper personnel;
(g) Inform Genfare of all Customer operating and security policies established for the safe, secure and proper interaction with the Services; (h) Be responsible for freight charges to Genfare, located in Elk Grove Village, IL, and all costs, expenses related thereto;
(i) Be responsible for any Genfare travel expenses for on-site support; (j) Promptly notify Genfare when any change is made to the Services; and (k) Promptly (no later than 10 business days after receipt) install all patches, error corrections and updates provided by Genfare.
(l) Customer shall provide the first level of support to its employees, staff, agents, contractors, riders or its Client’s riders using Mobile Link.

Attachment B
17 (m) Customer shall reconcile all reports on a monthly basis and notify Genfare of any discrepancies within thirty (30) days. Genfare shall not be liable for any amounts reported as a discrepancy if Customer does not reconcile on a monthly basis.

6. Support Response Time and Availability

6.1 Response Time.

Genfare shall make available an adequate number of personnel to ensure that the requirements hereunder, including, without limitation, all response times as described under Section 6.4, are met.

6.2 Initial Response.

Genfare shall provide an initial response (the “Initial Response”) in accordance with Section

6.4 below. As part of the Initial Response Genfare shall:
(a) Request access to the Services or any part thereof, other than to the actual TVM itself, in order to determine the nature of the reported Error. Genfare access must be coordinated through the primary Customer representative or his/her designate.

Access will only be provided upon request and will be terminated upon Resolution of the Error. During said access, Genfare agrees to observation by Customer staff.
(b) Determine the cause of the Error and the solution to the Error. (c) Provide Customer with an estimate of the time required to correct the reported Error in accordance with Section 6.4 below.

6.3 Support Availability. Telephone Support shall be available 24/7 via Genfare’s support telephone numbers. Customer Portal Support is available 24/7 for P2 and P3 Severity Issues. All P1 calls need to be directed a live person based on the time of day listed below
(a) Main Hour Support: 847.871.1231 – 8:00am to 5:30pm CST After Hour Support: 844.287.5234 – 5:31pm to 7:59am CST (b) Customer Portal: https://genfare-community.force.com/customer/ or at www.genfare.com on the home page top right corner.

6.4 Support Response Time and Availability.

Issue Severity
24/7 Support Breakdown
Severity/Impact Description Acknowledgement
Goal
Response
Time Goal
Resolution
Goal
P1
System Down – Critical
production issue affecting
ability to collect fares,
including system
unavailability, with no
workaround available
Less than 30
minutes, 24/7
Less than 3
hours, 24/7 24 hours
P2
Major – Production issue
impacting data integrity, loss of
functionality and/or
significantly degraded
performance, issue is persistent
Less than 30
minutes, 24/7
Less than 4
hours,
during main
business
hours
24 hours,
during main
business
hours
Attachment B
18 with no workaround available
P3
Minor – Any system issue that
affects functionality or impacts
performance, workaround may
be possible but not sustainable
Less than 30
minutes, 24/7
Less than
24 hours,
during main
business
hours
20 days

ALL RESPONSE TIMES CONTAINED IN THIS AGREEMENT ARE CALCULATED FROM THE TIME CUSTOMER MAKES AN INITIAL CALL FOR ERROR RESOLUTION. RESOLUTION

TIMES ARE DEPENDENT UPON ACCESSIBILITY TO THE APPLICABLE SYSTEMS AS

GRANTED BY THE CUSTOMER AND THE TIME PERIOD FOR DETERMINING RESOLUTION

SHALL NOT BEGIN UNTIL CUSTOMER HAS PROVIDED GENFARE ALL REQUIRED ACCESS TO ITS SYSTEMS, IF REQUIRED.

7. Customer Assets

PRODUCT QTY DATE
Odyssey Farebox 24 2011-2021
Network Manager 1 2017
VIP Data System 1 2015
Ticket Vending Machine 3 2 2015

As a part of the support package, Genfare and Customer will review each of the products that make up Customer’s current fare collection solution. This will include Customer’s current software, hardware, and any integrations integral to Customer’s fare collection solution so these can be referenced within the Customer Portal.

8. Help Desk Services

Genfare will provide Help Desk Services to assist Customer with use of the Services and assistance in resolving problems encountered by Customer.

8.1 Help Desk Services
(a) Contacting the Help Desk
(i) Customer Portal (all users must be registered to access the Customer Portal): https://genfare-community.force.com/customer/
(ii) Email: [email protected]
(iii) Phone:
(A) Main Hour Support: 847.871.1231 – 8:00am to 5:30pm CST (B) After Hour Support: 844.287.5234 – 5:31pm to 7:59am CST

(b) Ticketing Procedures
(i) Each inquiry will be documented, assigned a ticket number and a confirmation email will be sent to the originator to confirm the request has been received.

Attachment B
19 (ii) Each ticket will be assigned to a technical support engineer to follow up and resolve each issue.
(iii) A technical support engineer will make contact according to the contact information within the ticket to work on the ticket, or to schedule a time to work on the ticket.

8.2 Communications protocol
(a) In order to connect to the Customer’s system and Resolve Errors in the Services or Software, Genfare must be able to reach the Customer Representative (or delegate), or Genfare will be unable to connect to the system to identify the root cause of, and subsequently Resolve, the reported Error. (b) Genfare may use the following tools to remotely access the Customer system:
(i) LogMeIn Rescue/Pro (default and preferred option)
(ii) TeamViewer
(iii) VPN (Cisco or Junos)

8.3 Customer Portal
(a) Customer may purchase additional Customer Portal licenses for access to the customer portal and digital training, such licenses are available at a rate of $900/per user per year. Additional licenses will be prorated at the time of addition and will be updated annually.
(b) Customer Portal licenses are available for a single user and cannot be assigned to shared email addresses.
(c) Customer may change Customer’s users listed below once per year, upon applicable contract renewals, or upon an employee leaving the Customer’s employ.
(d) Genfare reserves the right to audit Customer’s Customer Portal licenses and use of such licenses and may remove any registered Customer Portal user for inactivity. If Genfare removes a registered Customer Portal user for inactivity, Customer may not re-fill that Customer Portal License until the removed Customer Portal license would have been eligible to be changed as specified in

7.3(c) above.
(e) Initial Customer Portal License Users

Up to 9 for Platinum contacts are allowed for portal access. If you go over the set number of contacts, each additional contact is $900 and is added to the base of the contract. Contacts can be added anytime as we will pro-rate the license.

# Contact Name Title Email Phone
1 2
3 4
5 6

Attachment B
20 EXHIBIT B

PAYMENT PROCESSING SERVICES AGREEMENT
Pursuant to the Genfare Link Services Attachment, Customer elects through one of Genfare’s third- party service providers the following services which may include one or more of (a) the processing of credit card, prepaid card and debit card (each a “Card”) payments and related services (“Processing Services”); or the transport and reporting of certain data over certain wireless and other carrier networks to and from various credit and debit card payment processors (the “Gateway Services”) (individually, and collectively referred to as “Payment Processing Services).

Genfare and Customer agree that the following terms and conditions shall govern Customer’s rights and obligations with respect to any Payment Processing Services provided by Genfare:

1. Definitions.

1.1 “Genfare Products” shall mean the Equipment, Services and/or Software as purchased, licensed and/or used by the Customer.

1.2 “Laws” mean any state, federal, or local laws, rules, or regulations applicable to Customer.

1.3 “Limited Acceptance Options” means either (i) all Visa and MasterCard consumer credit cards and Visa and MasterCard commercial credit and debit cards; or (ii) Visa and MasterCard debit cards only (excluding credit cards).

1.4 “Merchant Settlement Account” means at least one bank account owned by Customer for the deposit and settlement of funds arising from the Payment Processing Services.

1.5 “Payment Brand ” means any payment method provider whose payment method is accepted by Paymentech for processing, including, without limitation, Visa Inc., MasterCard International, Inc., Discover Financial Services, LLC, and other credit and debit card providers, debit network providers, gift card, and other stored value and loyalty program providers. Payment Brand also includes the Payment Card Industry Security Standards Council.

1.6 “Payment Brand Marks” means the brands, emblems, trademarks, and logos that identify a Payment Brand.

1.7 “Payment Brand Rules” means all published bylaws, rules, programs, and regulations, as they exist from time to time, of the Payment Brands.

1.8 “Payment Instrument ” means an account, or evidence of an account, authorized and established between a Customer and a Payment Brand, or representatives or members of a Payment Brand, that are accepted from Customers as payment for a good or service.

Payment Instruments include, but are not limited to, credit and debit cards, stored value cards, loyalty cards, electronic gift cards, authorized account or access numbers, p aper certificates, and credit accounts.

Attachment B
21 1.9 “Payment Instrument Information ” means information related to a Customer or the Customer’s Payment Instrument that is obtained from the Customer's Payment Instrument or from the Customer’s use of a Payment Instrument (e.g., a security code, a PIN number, credit limits, account balances, or the customer's zip code when provided as part of an address verification system). Without limiting the foregoing, such information may include a the Payment Instrument account numb er and expiration date, the Customer’s name or date of birth, PIN data, security code data (such as CVV2 and CVC2), and any data read, scanned, imprinted, or otherwise obtained from the Payment Instrument, whether printed thereon, or magnetically, electron ically, or otherwise stored thereon. For the avoidance of doubt, the data elements that constitute Payment Instrument Information shall be treated according to their corresponding meanings as “cardholder data” and “sensitive authentication data” as such terms are used in the then current PCI DSS.

1.10 “Payment Network” means a Card brand (e.g., Visa, MasterCard, Discover or other card brand).

1.11 “Payment Network Rules” means the then-current Payment Network operating rules and regulations.

1.12 “Purchaser” means the person or entity to whom a Payment Instrument is issued or who is otherwise authorized to use a Payment Instrument.

1.13 “Retrieval Request” means a request for information by a Customer or Payment Brand relating to a claim or complaint concerning a Transaction.

1.14 “Security Standards ” are all rules, regulations, standards or guidelines adopted or required by the Payment Brands or the Payment Card Industry Security Standards Council relating to privacy, data security and the safeguarding, disclosure and handling of C ard Information, including but not limited to the Payment Card Industry Data Security Standards (“PCI DSS”), Visa’s Cardholder Information Security Program (“CISP”), Discover’s Information Security & Compliance Program, American Express’s Data Security Operating Policy, MasterCard’s Site Data Protection Program (“SDP”), Visa’s Payment Application Best Practices (“PABP”), the Payment Card Industry’s Payment Application Data Security Standard (“PA DSS”), MasterCard’s POS Terminal Security program and the Payment Card Industry PIN Entry Device Standard, in each case as they may be amended from time to time.

1.15 “Transaction” means a transaction conducted between Customer and Purchaser, or Genfare and Purchaser, utilizing a Payment Instrument in which consideration is exchanged (i) between the Customer and Purchaser, or (ii) between Genfare and Purchaser.

Transaction also means the written or electronic record of a Transaction, including, without limitation, an authorization code or settlement record.

1.16 “Transaction Receipt” means an electronic or paper record of a Transaction generated upon completion of a sale or Refund, a copy of which is presented to the Customer.

Attachment B
22 1.17 “Unattended Transactions” means those Transactions where it is not physically possible for the Custom er to examine each Payment Instrument used, such as Transactions at unattended points of sale, on -line, mail, telephone, pre -authorized or recurring Transactions.

2. Services. Genfare will arrange for Customer to receive and use the Payment Processing Servic es through Genfare’s hardware and/or software, will help manage the relationships between Customer and the Genfare’s third -party service providers, and provide limited support as provided herein.

Customer acknowledges and agrees that Genfare is not a bank , a payment gateway or a payment processor, and does not directly provide the Payment Processing Services to Customer but instead facilitates Customer’s receipt of the Payment Processing Services under the terms of this Exhibit B. Customer agrees that Genf are shall be Customer’s exclusive provider of Payment Processing Services for the processing of payments by Purchaser’s and Customer’s use of the Genfare Products during the Term. If permitted pursuant to the Payment Brand Rules, Genfare may charge Purchasers a convenience fee for Purchaser’s use of the Payment Processing Services. Customer acknowledges and agrees that any Transaction made utilizing the Payment Processing Services shall not be submitted on behalf of a third party to the best of Customer’s knowledge. Customer agrees that implementation of any custom interchange rate(s) which Genfare or Customer may have negotiated, or may in the future negotiate, directly with the Payment Networks may require time and development work. For recurring Purchaser Transactions, Customer shall obtain the consent to periodically charge the Purchaser on a recurring basis and retain this permission for the duration of the recurring Transactions in order to provide it to the Payment Brands, the issuing bank of the Purchaser’s Payment Instrument, Genfare, as well as Genfare’s third -party service providers and its affiliates on request.

3. Availability and Support for Payment Processing Services . Customer acknowledges that the Payment Processing Services are provided by third-party service providers and that Genfare makes no representation or warranty that the Payment Processing Services will be meet any availability or performance requirements. Any support offered by Genfare regarding the Payment Processing Services is stri ctly limited to support for such services and will not include any support for Customer’s hardware.

Support for the Payment Processing Services will be provided as follows:
 Customer shall be responsible for Tier 1 support to Purchasers.

4. Account Information. Customer hereby authorizes Genfare or its designee to obtain, and grants Genfare the limited power of attorney to obtain information regarding the Account (including, without limitation, account balance and activity at any given time).

5. Compliance. Customer agrees that it shall only access and use the Payment Processing Services via the Genfare Products or as otherwise agreed to in writing between the parties and will use the Payment Processing Services solely in accordance with Required Conditions, Prohibited Businesses, Merchant Categories and Transaction Types set forth in Annex 1 of this Exhibit B. In addition, Customer hereby agrees to comply with (a) all applicable law (including applicable data security and privacy laws); (b) all applicable Pa yment Network Rules; (c) the written agreement between Customer and the third -party service provider providing some or all of the Payment Processing Services (each, a “Payment Services Agreement”); (d) the Payment Brand Rules; (e) the Security Standards; and (g) the policies and procedures of the Processing Services provider or Attachment B
23 the Gateway Service provider that are provided to Customer from time to time regarding Customer’s use of the Processor Services or Gateway Services, respectively.

6. Merchant Payment Processing Instructions and Guidelines. As a condition of Customer’s receipt of the Payment Processing Services, Customer must agree in writing to the Merchant Payment Processing Instructions and Guidelines attached hereto as Annex 2.

7. Fraud Losses, Chargebacks, Refunds, Fines, and Liabilities . Customer acknowledges and agrees that (i) it is solely responsible for all fraud losses it incurs in connection with the Services and that (ii) may be subject to reversals of previously settled Card Transactions (“Ch argebacks”) and to fees, charges, fines, costs, assessments, damages, liabilities, and amounts imposed as a result of its failure to comply with the terms of this Exhibit B, the Agreement, any Payment Network Rules, or any Laws (collectively “Deductions”). If Customer elects to make refunds of Card Transactions, Customer is solely responsible for such amounts and all fees relating thereto, but in no instance will Customer make such refunds by cash or cash equivalents.

8. Data Security . Customer agrees to, a nd to cause third parties acting as Customer’s agent, implement and maintain commercially reasonable data security measures in view of the nature of the data being stored and transmitted, including but not limited to compliance with the Payment Network Rules and all applicable laws, including, without limitation, any and all confidentiality and security requirements of Payment Networks, including but not limited to the Payment Card Industry Data Security Standard. Without limiting the foregoing, Customer ag rees that it is responsible for maintaining the security and integrity of its machines and terminals and will take such measures as are necessary for such protection, including but not limited to compliance with the applicable portions of the Payment Card Industry Security Standards Council (“PCI -SSC”) “Information Supplement: Skimming Prevention - Best Practices for Merchants” (available at www.pcisecuritystandards.org/documents/skimming_prevention_IS.pdf) and Payment Card Industry Unattended Payment Terminal Security Guidelines and such other relevant guidelines and best practices as are published or promulgated by the PCI-SSC or any successor thereto. Customer shall be fully and solely responsible for any damages, fines or fees incurred by Customer, Gateway Service provider, Processing Service provider or other processor retained by Customer, the acquiring bank, or any other party as a result of Customer’s failure to comply with the foregoing or any other terms of this Exhibit B.

9. No License from Genfare. The Gateway Services are licensed by the Gateway Services provider and are not licensed or sublicensed by Genfare.

10. Customer Representations and Warranties.

10.1 Customer represents and warrants that it will comply with all applicable data privacy laws, including the California Consumer Privacy Act if applicable.

10.2 Customer represents and warrants that all information provided in the Application is true and correct in all respects at all times throughout the term of this Exhibit B.

10.3 Customer represents and war rants that it has no knowledge or notice of information that would lead it to believe that the enforceability or collectability of Transactions will in any manner be impaired. Further, Customer has not submitted and will not submit a Transaction that is known or should be known to it to be either fraudulent, illegal, or damaging to any Payment Brand. Genfare may require Customer to provide an updated service application Attachment B
24 (“Application”) at the time of renewal or other term extension or upon Genfare’s request from time to time.

10.4 Customer represents and warrants that it will promptly notify Genfare prior to any change in its legal name, organizational structure, ownership, principals, a change to Customer’s bank account, or the filing of a bankruptcy or similar proceeding by or against it, and any failure to so notify Genfare of such event shall constitute grounds for termination of this Exhibit B or the Agreement. Customer hereby authorizes Genfare (and its designees, which may include Gateway Services provider , Processing Service provider, and the acquiring bank) to obtain credit reports and perform such credit checks on Customer, its principals and affiliates as Genfare or its third -party service provider deems advisable in its sole discretion at any time.

10.5 Customer represents and warrants that its execution of and performance under this Exhibit B (i) in no way breaches, contravenes, violates, or in any manner conflicts with any of its other legal obligations, including its governing documents or any agreement with any third party; and (ii) has been duly authorized by all necessary action and does not require any consent or other action by or in respect of any third party. Customer agrees that authorization of a Transaction indicates that the Payment Instrument (i) contains a valid account number and (ii) has an available credit balance to cover the amount of the Transaction.

11. Genfare Warranty and Disclaimer.

11.1 Notwithstanding anything to the contrary contained in the Agreement, Genfare makes no claims or warrant ies with respect to the Processing Services provider, the Processing Services, the Gateway Services provider, or the Gateway Services.

12. Indemnification. In addition to, and not in lieu of Customer’s indemnification obligations contained elsewhere in the Agr eement, Customer agrees that it shall indemnify Genfare against all fees, charges, fines, assessments, costs, damages and liabilities asserted by Gateway Services provider, Processing Service provider, any third-party processor, any acquiring bank, any Payment Network, or any governmental authority arising out of or related to Customer’s use of the Gateway Services, Processing Services or other performance of this Exhibit B, except for any such fees, charges, fines, assessments, costs, damages and liabiliti es caused solely by Genfare’s negligence or intentional misconduct.

13. Survival. The terms of this Exhibit B that expressly or by implication are intended to survive termination shall survive termination of this Exhibit.

14. Conflicts. In the event of a conflict between the terms contained in this Exhibit B, the terms in an Attachment and the Agreement, the order of precedence is: Attachment, Exhibit B, and then the main body of the Agreement.

Attachment B
25 ANNEX 1
Required Conditions, Prohibited Businesses, Merchant Categories and Transaction Types (For Customer information use only)
A. Required Conditions: Customer represents and warrants that it shall:
 Accept all categories of Visa and MasterCard Payment Instruments (i.e. debit and credit cards) unless the customer has previously, through written notice, indicated election of one of the Limited Acceptance Options, as well as all foreign bank-issued Visa or MasterCard Payment Instruments; o If a Limited Acceptance Option is selected by Customer, then the Customer must disp lay appropriate signage to indicate the details of the applicable Limited Acceptance Option  Not engage in any practice that unfavorably discriminates against or provides unequal treatment of any Payment Brand relative to any other Payment Brand;
 Not set a dollar amount above or below which it refuses to honor otherwise valid Payment Instruments during the Subscription Term;
 Physically examine each Payment Instrument used at those attended points of sale to determine that the Payment Instrument presented is valid and has not expired;  Notify Genfare, and to the extent possible its third -party service providers, of the intent to conduct Unattended Transactions;
 Ensure that there are appropriate procedures in place to confirm that each Unattended Transaction is made by the intended Purchaser;
 Not split a single Transaction into two or more Transactions to avoid or circumvent authorization limits or monitoring programs;
 Not accept Payment Instruments for the purchase of scrip;  Not require a Purchaser to complete a postcard or similar device that includes a Purchaser’s Payment Instrument information;
 Not disburse or advance any cash to the Purchaser, itself, its representatives, agents or employees in connection with a Transaction
 Not accept payment for effecting credits to a Purchaser;  Not make or have previously made a representation or agreement for the issuance of refunds except as stated in all applicable refund policies that have been published to Genfare and all Purchasers;  Not accept or facilitate the acceptance of Payment Instruments in connection with installment plans;  Execute any and all applications and documentation required by the Payment Brands and Genfare’s third-party service providers and its affiliates;
 Not operate a Prohibited Business, nor fall w ithin the Prohibited Merchant Category, nor submit a Prohibited Transaction, as these terms are defined in Annex 1 attached hereto;  Maintain a refund policy and disclose such refund policy to Genfare, its third -party service providers, and Purchasers;
 Submit any change of its refund policy 14 days prior to the effective date of such change to Genfare and its third-party service providers;
 Prepare and deliver to Genfare and its relevant third -party service providers, Transactions reflecting any refund within 3 days of the Customer or Genfare approving such a refund;  Not accept any payment from a Purchaser as consideration for issuing a refund;  For recurring Transactions of a Purchaser, obtain the consent to periodically charge the Purchaser on a recurring basis and retain this permission for the duration of the recurring Transactions in order to provide it to the Payment Brands, the issuing bank of the Purchaser’s Payment Instrument, Genfare, as well as Genfare’s third-party service providers and its affiliates on request; Attachment B
26  Retain written documentation specifying the frequency of any recurring charges to a Purchaser and the duration of time during which such charges may be made;  Not submit any recurring transaction after receiving a cancellation notice from a Purchaser or a notice from Genfare, its third -party service providers or any Payment Brand that a Purchaser’s Payment Instrument is not to be honored;
 Offer Purchasers a data protection method such a 3-D Secure or Secure Sockets Layer (SSL);  Maintain their respective Merchant Settlement Accounts for as long as they receive Payment Processing Services;
 Notify Genfare and its third-party service providers with no less than 5 days prior notice of an intent to close their respective Merchant Settlement Accounts
 Substitute another Merchant Settlement Account subsequent to the closure of any prior Merchant Settlement Account;
 Obtain an authorization code through a Genfare’s third-party service provider for each Transaction;  Have a valid agreement in effect with any applicable Payment Brand;  Store and retain Transactions and Transaction Receipts in compliance with the Payment Brand Rules;  If applicable, send Genfare and Genfare’s relevant third -party service provider, via certified or overnight mail or confirmed fax, a written resolution of the investigation of a Retrieval Request, along with legible copies of any supporting documentation requested or required by the Retrieval Request;  Exercise reasonable care to prevent disclosure or use of Payment Instrument Information;  Not using Payment Brand Marks, other than as expressly authorized by the Payment Brands; and  Use the Payment Brand Marks only to promote the services covered by the Payment Brank Marks by using them on decals, indoor and outdoor signs, advertising ma terials, and marketing materials, provided that all such uses are consistent with the Payment Brand Rules.

B. Prohibited Businesses and Business Activities:
 Adult-oriented products or services (of any media type, including Internet, telephone, printed material, etc.)
 Buyers clubs / Membership clubs
 Collection agencies engaged in the collection of Uncollectible Debt (as defined by the Payment Brands)  Bankruptcy attorneys
 Credit repair agencies
 Sports forecasting or odds making
 Credit counseling or credit repair services
 Credit protection / Identity theft protection
 Direct marketing—subscription merchants
 Infomercial merchants
 Internet/MOTO pharmacies
 Internet/MOTO pharmacy referral sites
 Internet/MOTO Firearm or Weapon Sales
 Internet/MOTO Tobacco Sales
 Drug Paraphernalia
 Occult Materials
 Multi-level marketing businesses
 Inbound telemarketers
 Outbound telemarketers
 Prepaid phone cards
 Prepaid phone services
 Rebate-based businesses
Attachment B
27  “Up-Sell” merchants
 Bill payments
 Escort services
 Gambling or betting, including lottery tickets, raffles, casino gaming chips, off -track betting, and wagers at race tracks
 Financial Institutions — Manual Cash Disbursements
 Financial Institutions — Automated Cash Disbursements  Financial Institutions — Merchandise and Services
 Non-Financial Institutions — Money Orders, Foreign Currency, etc.  Wire Transfer Money Orders
 High-Risk Merchants
 High-Risk Telemarketing Merchants
 Service Station Merchants
 Automated Fuel Dispensers (AFD)
 Any business model heavily reliant upon or solely or primarily based on any guaranteed “rebate”, “refund”, or “prize” associated with the sale of products or services C. Prohibited Merchant Categories:
 Merchants domiciled, residing, or having a principal place of business outside of the U.S.  Merchants engaged in any illegal activity, or any activity reasonably likely to create notoriety, cause harm or damage the reputation of Paymentech, Member or any Payment Brands  Merchants listed on the VISA Terminated Merchant File, MasterCard MATCH, or any similar Payment Brand list
D. Prohibited Transaction types:
 Account Funding Transactions
 Dynamic Currency Conversion
 Quasi-Cash Transactions
 Purchase of a Scrip

28 DocID: 4810-4174-8398.2
ANNEX 2

MERCHANT PAYMENT PROCESSING INSTRUCTIONS AND GUIDELINES (For Customer information use only)

[Attached Separately]

Genfare Price Quotation Summary Terms & Conditions: All prices are valid for 90 days from the Document Date unless otherwise noted above.

Delivery will be made within 120 days after receipt of order (ARO) unless otherwise noted above. Prices do not include any state or local taxes or freight charges.

Customer will be responsible for applicable taxes and freight charges which will be included upon invoicing. Regardless of any taxes included above applicable taxes due are determined as of the date of shipment or service. All price quotations are subject to and shall be governed solely and exclusively by the Genfare Standard Terms And Conditions Of Sale, a copy of which is attached and incorporated herein.

Sales Quotation
Sold-To-Party
City of Santa Maria
Suite 226 110 S Pine St, STE 101
Santa Maria CA 93458-5078
Ship-To-Party
City of Santa Maria
Suite 226 110 S Pine St, STE 101
Santa Maria CA 93458-5078
End User
City of Santa Maria
Suite 226 110 S Pine St, STE 101
Santa Maria CA 93458-5078

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Santa Maria City CouncilMarch 3, 2026

Santa Maria City Council
March 3, 2026