Agenda — Santa Maria City Council, April 7, 2026 (part 1 of 2)

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

CITY COUNCIL AGENDA

CITY OF SANTA MARIA, CALIFORNIA

CITY HALL
110 EAST COOK STREET

Tuesday, April 7, 2026
CLOSED SESSION - 3:30 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-meetingsportal.

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 who are not attending the meeting but wish to submit a public comment on any item on the agenda or within the City's jurisdiction may do so by emailing [email protected] or mailing correspondence to:

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, however all correspondence will be distributed to Councilmembers. Submissions received after the deadline will be uploaded to the City's agenda webpage under the applicable meeting on the following day and 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 - 3:30 P.M.

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

2. PUBLIC COMMENT PERIOD
Speakers may provide public comment 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.

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 Soto, Mayor Pro Tem Flores, and Mayor Patino

8. PRESENTATIONS

8.a Proclamation Proclaiming April 6 through 10, 2026, as “National Community Development Week”
The City Council will present a Proclamation proclaiming April 6 through 10, 2026, as “National Community Development Week” to celebrate and showcase the programs and projects which are funded by federal grant programs like Community Development Block Grants and HOME Investment Partnership.

8.b Proclamation Proclaiming April 13 through 20, 2026, as “International Dark Sky Week”
The City Council will present a Proclamation proclaiming April 13 through 20, 2026, as “International Dark Sky Week” in the City of Santa Maria.

8.c Proclamation Proclaiming April 19 through 25, 2026, as “National Library Week” The City Council will present a Proclamation proclaiming April 19 through 25, 2026, as National Library Week in the City of Santa Maria.

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8.d Proclamation Proclaiming April 20 through April 25, 2026, as “Arbor Week”.

The City Council will present a Proclamation proclaiming April 20 through 25, 2026, as “Arbor Week” in the City of Santa Maria and invite all residents and businesses to celebrate and take part in the festivities by planting trees and acknowledging the important role trees have in the City.

8.e Proclamation Proclaiming April 2026, as “Donate Life Month”.

The City Council will present a Proclamation proclaiming April 2026, as “Donate Life Month” in the City of Santa Maria.

8.f Proclamation Proclaiming April 2026 as “Fair Housing Month” The City Council will present a Proclamation to recognize the month of April 2026 as “Fair Housing Month” in the City of Santa Maria and encourage the continued celebration of equal housing opportunities and the progress made in opening the doors to housing opportunities for all residents of Santa Maria.

8.g Proclamation Proclaiming April 2026 as “Sexual Assault and Child Abuse Awareness and Prevention Month”
The City Council will present a proclamation proclaiming April 2026 as “Sexual Assault and Child Abuse Awareness and Prevention Month” in the City of Santa Maria.

8.h Presentation – Santa Maria Downtown Multimodal Assessment The City Council will receive a presentation regarding the Santa Maria Downtown Multimodal Assessment (SMDMA) funded by Caltrans.

8.i Presentation – Value of Volunteering
The City Council will receive a presentation about the value of volunteering for the health of the community and the volunteer.

8.j Presentation – Commander Daniel Rios’ Graduation from the FBI National Academy The City Council will receive a presentation regarding Commander Daniel Rios’ recent attendance and graduation from the FBI National Academy.

9. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION

10. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Once the Public Comment Period has commenced, no further comments will be accepted.

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.

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11. 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.

11.a CITY MANAGER/CITY CLERK DEPARTMENT

11.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.

11.a.2 Approval of Minutes
RECOMMENDATION:

Approve the Minutes of the regular City Council meeting of March 3, 2026, and special meeting of March 17, 2026.

11.a.3 Support for CommUnify Head Start/Early Head Start Child Care Center The City Council will consider support for CommUnify’s application for County of Santa Barbara Community Development Block Grant funding to establish a Head Start/Early Head Start Child Care Center, including waiver of City permitting and licensing fees.

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:

Authorize support for the nonprofit organization CommUnify’s grant application to the County of Santa Barbara for Community Development Block Grant (CDBG) funds to establish a Head Start/Early Head Start Child Care Center at 420 East Fesler Street, including a local match in the form of in-kind contributions that may include a waiver of City permitting fees; parking lot striping; and the waiver of City business licensing fees in an amount not to exceed $25,080; and

1. Authorize the City Manager, or designee, to execute all related documents.

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11.b CITY ATTORNEY DEPARTMENT

11.b.1 Adoption of a Resolution Approving the Donation of Salvador Dali Destino Paintings from John and Nina Baldwin
The City Council will consider adopting a Resolution approving the receipt of donation of Salvador Dali Destino paintings from John and Nina Baldwin to the City of Santa Maria.

Environmental Notice: 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 approving the donation of Salvador Dali Destino paintings to the City of Santa Maria from John and Nina Baldwin.

11.c COMMUNITY DEVELOPMENT DEPARTMENT

11.c.1 Adoption of a Resolution Approving Entering into the California Home Energy Renovation Opportunity (HERO) Program and Approve Amendment to Joint Powers Agreement
The City Council will consider adopting a Resolution authorizing the City to enter the Home Energy Renovation Opportunity (HERO) Program, administered by the Western Riverside Council of Governments (WRCOG).

RECOMMENDATION:

Adopt a Resolution consenting to the inclusion of properties within the City’s jurisdiction in the California HERO Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric vehicle charging infrastructure and approving the amendment to a certain Joint Powers Agreement between City of Santa Maria and Western Riverside Council of Governments related thereto;

1. Authorize the membership of the City of Santa Maria in the WRCOG; authorizing WRCOG to accept applications from property owners, conduct contractual assessment proceedings and levy contractual assessments within the territory of the City; and

2. Authorize the City Manager, or designee, to execute all related documents; and authorize related actions.

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11.c.2 Adoption of a Resolution Approving Las Brisas Apartments Planned Development Permit Request for a Time Extension
The City Council will consider adopting a Resolution approving a request for a two-year Time Extension (A2026-0003) to Planned Development Permit (PD2022-0011) for MBK Rental Living, Inc. to construct 103 apartment units in 23 two-story buildings, a community center, landscaping, parking and resident amenities on a 9.96-acre site in a PD/R-3 (Planned Development/High Density Residential) district.

Environmental Notice: The project was adequately covered in a previously adopted Addendum to the Betteravia Plaza Final Environmental Impact Report (State Clearing House Number 2015011029) pursuant to California Environmental Quality Act State Guidelines Section 15162.

RECOMMENDATION:

Adopt a Resolution approving Permit Amendment A2026-0003 granting a twoyear time extension for Planned Development Permit PD2022-0011 located at Lots 1 and 2 of Tract 6008 (APNS 117-990-001 and 117-990-002).

11.d FINANCE DEPARTMENT

11.d.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.

11.d.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.

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11.d.3 Adoption of a Resolution Approving an Updated General Fund Reserve Policy and Section 115 Trust
The City Council will consider adopting a Resolution approving a new General Fund Reserve Policy and will consider establishing a Section 115 Trust and funding those accounts as outlined in the Fiscal Considerations section to this report.

RECOMMENDATION:

Adopt a Resolution approving an updated general fund reserve policy and Section 115 Trust; and

1. Authorize the Finance Director to take steps to establish the Section 115 Trust for the City’s other post-employment and unfunded pension long-term debt; and

2. Authorize the Finance Director to align funding the reserves and the Section 115 trust as outlined in the Fiscal Considerations section of this report.

3. 11.d.4 Adoption of a Resolution Retroactively Approving Agreement with Paymentus Corporation for Electronic Payment Processing Services
The City Council will consider adopting a Resolution retroactively approving a service agreement with Paymentus Corporation.

RECOMMENDATION:

Adopt a Resolution retroactively approving a purchase agreement with Paymentus Corporation, a Delaware Corporation, for electronic payment processing services; and

1. Authorize City Manager, or designee, to execute the eight-year agreement.

2. 11.e FIRE DEPARTMENT

11.e.1 2025 Annual Fire Department Report
The City Council will receive the 2025 Annual Fire Department Report.

RECOMMENDATION:

The City Council will receive and file the 2025 Annual Fire Department Report.

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11.f LIBRARY DEPARTMENT

11.f.1 Adoption of a Resolution Approving the Receipt of Donation from the Friends of the Santa Maria Public Library
The City Council will consider adopting a Resolution approving the receipt of a donation from the Friends of the Santa Maria Public Library.

Environmental Notice:

RECOMMENDATION:

Adopt a Resolution approving the receipt of a $28,900 donation from the Friends of the Santa Maria Public Library.

11.g PUBLIC WORKS DEPARTMENT

11.g.1 Adoption of a Resolution Approving a Partnership with People’s Self-Help in Support of an Affordable Housing and Sustainable Communities Grant Application and Authorization to Submit a Partnership Letter The City Council will consider adopting a Resolution authorizing the City to partner with People’s Self-Help Housing (PSHH) in support of an Affordable Housing and Sustainable Communities (AHSC) grant application to the California Strategic Growth Council for the Heritage View affordable housing development and associated transportation improvements.

Adopt a Resolution authorizing the City of Santa Maria to partner with People’s Self-Help Housing in support of an Affordable Housing and Sustainable Communities grant application and authorizing submission of a partnership support letter; and

1. Authorize the City Manager, or designee, to execute and submit a partnership support letter and any related documentation necessary to support the Affordable Housing and Sustainable Communities grant application.

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11.g.2 Adoption of a Resolution Approving the Award of a Construction Agreement with Main Line Engineering Construction, Inc. for the REAP Pedestrian Improvements – 2026 Phase 1, Project No. 2026-04
The City Council will consider adopting a Resolution awarding an a agreement for the REAP Pedestrian Improvements – 2026 Phase 1 project.

Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 Existing facilities (operation, repair, maintenance, leasing, etc.) of the California Environmental Quality Act State Guidelines.

RECOMMENDATION:

Adopt a Resolution awarding a Construction Agreement to Main Line Engineering Construction, Inc. for the REAP Pedestrian
Improvements – 2026 Phase 1, Project No. 2026-04, in the amount of $240,238; and

1. Authorize the City Manager, or designee, to execute the agreement and any future amendments or change orders necessary provided such amendments are within the scope of the project and consistent with the adopted project budget; and

2. Authorize the City Manager, or designee, to execute necessary project amendments to the agreement not to exceed the contingency amount.

3. 11.g.3 Adoption of a Resolution Approving the award of a Construction Agreement with Main Line Engineering Construction, Inc. for the REAP Pedestrian Improvements – 2026 Phase 2, Project No. 2026-05
The City Council will consider adopting a Resolution awarding an agreement for the REAP Pedestrian Improvements – 2026 Phase 2 project.

RECOMMENDATION:

Adopt a Resolution awarding a Construction Agreement to Main Line Engineering Construction, Inc. for the REAP Pedestrian
Improvements – 2026 Phase 2, Project No. 2026-05, in the amount of $107,995; and

2. Authorize the City Manager, or designee, to execute necessary project amendments to the agreement not to exceed the contingency amount.

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11.g.4 Adoption of a Resolution Approving the Award of a Construction Agreement with Baja Coast Fence Inc. for the Wastewater Treatment Plant Security Fencing Project, Bid No. 2025-06
The City Council will consider adopting a Resolution to award a Construction Agreement with Baja Coast Fence Inc. for the Wastewater Treatment Plant Security Fencing Project, Bid No. 2025-06, and authorize additional funding necessary to complete the project.

RECOMMENDATION:

Adopt a Resolution approving the award of a Construction Agreement with Baja Coast Fence Inc., for the Wastewater Treatment Plant Security Fencing Project, Bid No. 2025-06, in the amount of $680,810.60 and approve appropriation of additional funding in the amount of $58,582.04 with the approved Wastewater Enterprise Fund budget (SC7300|CC0260|FD640) for Fiscal Year 2025-26; and

2. 11.g.5 Adoption of Resolution Approving Amendment No. 6 to the Operations & Maintenance Agreement with RATPDev
The City Council will consider adopting a Resolution approving Amendment No. 6 to the existing Transit Operations and Maintenance Agreement with RATPDev to extend the contract term through June 30, 2028, and approve an increase to compensation for a total contract amount of $16,383,897.90, which includes: $7,982,578.96 for Fiscal Year 2026-27, and $8,401,318.94 for Fiscal Year 2027-28.

RECOMMENDATION:

Adopt a Resolution approving Amendment No. 6 to the Transit Operations & Maintenance Agreement with RATPDev to extend the term until June 30, 2028, and approve an increase to compensation for a total amount of $16,383,897.90 for Fiscal Years 2026-27 and 2027-28; and

1. Authorize City Manager, or designee, to execute agreement and implement the service enhancements and wage augmentations.

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11.h RECREATION & PARKS DEPARTMENT

11.h.1 Adoption of Ordinance No. 2026-01 Amending Ordinance No. 2025-03 Revising Titles 2 and 10 of the Santa Maria Municipal Code to Clarify Final Approval Authority for All Recreation Fees Rests with the City Council RECOMMENDATION:

Adopt Ordinance No. 2026-01, Amending Ordinance No. 2025-03, Amending the Santa Maria Municipal Code Title 1 “Administration,” Chapter 2-14 “Recreation and Parks Commission,” Section 2-14.06 “Recommendations to Council: Powers Generally” and Title 10 “Recreation and Parks,,” Chapter 10- 1 “Administration,” Section 10-1.02 “Adoption of Regulations”.

11.h.2 Adoption of a Resolution Amending Agreement with Wallace Group for the Sports Complex Design Project
The City Council will consider adopting a Resolution to approve amendments to contract with Wallace Group for the Sports Complex Design Project.

RECOMMENDATION:

Adopt a Resolution approving an amendment to agreement with Wallace Group for the Sports Complex Design Project approving an increase in the amount of $518,467 for a total contract amount of $772,940 for additional design phasing and engineering and landscape architectural design services; and

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

11.h.3 Adoption of a Resolution Approving the Purchase of Playground Equipment for the Santa Maria Sports Complex from Landscape Structures, Inc. (RecWest Outdoor Products, Inc. Representative)
The City Council will consider adopting a Resolution approving the direct purchase of playground equipment from Landscape Structures, Inc. (RecWest Outdoor Products, Inc. Representative) for the Santa Maria Sports Complex.

RECOMMENDATION:

Adopt a Resolution approving the purchase of playground equipment for the Santa Maria Sports Complex from Landscape Structures, Inc., represented by RecWest Outdoor Products, Inc., in the amount of $343,772.50; and

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

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11.i UTILITIES DEPARTMENT

11.i.1 Adoption of a Resolution Authorizing and Appropriating Additional Funding for the Well 15 Equipping Project, Bid No. 2025-04
The City Council will consider adopting a Resolution authorizing and appropriating additional funding in the amount of $1,045,000 for the Well 15 Equipping Project, Bid No. 2025-04.

Environmental Notice: Environmental Review for this project was completed through the preparation of an Initial Study/Mitigated Negative Declaration for the City of Santa Maria Well 15 Special Project (SCH# 2024061097) pursuant to the California Environmental Quality Act State Guidelines.

RECOMMENDATION:

Adopt a Resolution authorizing and appropriating additional funding of $1,045,000 for the Well 15 Equipping Project, Bid No. 2025-04; and

1. Approve the additional funding for Fiscal Year 2025-26 in the Water enterprise fund (SC7340|CC0280|FD620).

2. 12. APPOINTMENTS

12.a Appointments to Block Grants Advisory Committee
The City Council will consider making appointments to the Block Grants Advisory Committee.

RECOMMENDATION:

Block Grants Advisory Committee
Councilmembers Aguilera and Soto will have the opportunity to make one nomination each for an unexpired term ending July 2026, appointed by the Mayor, and confirmed by Council.

Two unexpired terms ending July 2026:

Nomination to be made by:

Vacant Councilmember Aguilera
Vacant Councilmember Soto
Applicants:

Jose Ramirez
Grace Paluck
Mauricio Ambriz

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12.b Appointments to Fill a City Council Vacancy on Outside Boards, Commission, and Committees Requiring City Council Representation
The City Council to confirm appointments to various outside boards, commissions, and committees.

RECOMMENDATION:

Mayor to make appointments to fill a City Council vacancy on outside boards, commissions, and committees and the City Council to ratify the selections

13. PUBLIC HEARING
ORDER OF PROCEEDINGS FOR PUBLIC HEARING ITEMS:

Council Agenda Report to be given.

Applicant/Appellant comments.

Questions from the City Council.

Written communications/Public input.

Public hearing to be closed.

City Council discussion and action.

13.a Fiscal Year 2026-27 Community Development Block Grant Program Drafted Action Plan
The City Council will receive comments from the public and review and approve the overall allocations and contingencies of the drafted Fiscal Year 2026-27 Community Development Block Grant Action Plan.

RECOMMENDATION:

Conduct a public hearing to receive comments from the public as part of the drafted Fiscal Year 2026-27 Community Development Block Grant Action Plan 30-day public review period; and

1. Consider the Block Grants Advisory Committee (BGAC)’s recommendation for the allocation of Fiscal Year 2026-27 Community Development Block Grant Program Public Services and Capital funds; and

2. Allocate the remaining $37,500 to Public Services programs in keeping with the BGAC’s recommendations; and

3. Review and approve the overall allocations and contingencies of the drafted Fiscal Year 2026-27 Community Development Block Grant Action Plan.

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14. 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.

14.a Automated RedLight Camera Program Research Summary The City Council will receive a presentation about the Automated Red Light Camera Program research summary. The City Council will be provided with information on potential implementation of a pilot program focused on improving traffic safety at high-risk intersections with the purpose of receiving direction from the City Council on moving forward with developing a pilot program proposal.

RECOMMENDATION:

Provide direction to staff for the development of a proposal for an Automated Red Light Camera Pilot Program.

14.b Drone as a First Responder and Real Time Crime Center Program The City Council will receive a presentation of staff’s proposed Drone as First Responder (DFR) and Real Time Crime Center (RTCC) programs.

RECOMMENDATION:

Provide direction to staff regarding implementation of the proposed Drone as First Responder and Real-Time Crime Center programs.

14.c Update on Senate Bill 707 (SB 707) Amendments to the Ralph M. Brown Act and Implementation Status
The City Council will receive an informational update regarding implementation of SB 707 amendments to the Ralph M. Brown Act.

RECOMMENDATION:

Receive and file an informational update regarding SB 707 amendments to the Ralph M. Brown Act and the City’s implementation status.

14.d Consideration of a Resolution Declaring Intent to Rename Cesar E. Chavez Drive or Return with Replacement Name Options and an Implementation Plan or Adopt Resolution Renaming Drive
The City Council will consider adopting a resolution declaring its intent to rename Cesar E. Chavez Drive or adopt a resolution renaming Cesar E. Chavez Drive.

RECOMMENDATION:

Adopt a Resolution declaring its intent to rename Cesar E. Chavez Drive; and

1. Provide directions for staff to return with recommended replacement name options and an implementation plan; or

2. 3. Adopt a Resolution renaming Cesar E. Chavez Drive.

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14.e Discussion Filling City Council District 1 Vacancy Created by the Resignation of Former Councilmember Carlos Escobedo on March 3, 2026
The City Council will discuss filling City Council District 1 vacancy.

RECOMMENDATION:

Discuss options to fill City Council District 1 vacancy:

City Council may discuss and appoint at the April 7th meeting, if appointment is made, to adopt a Resolution approving appointment through the November 2026 Election and thereafter until the person elected has been seated to complete the unexpired term; or

1. Provide direction to staff to initiate interviews or other steps as determined by the City Council for consideration at a future special meeting to consider appointing a qualified individual to fill the vacancy through the November 2026 Election and thereafter until the person elected has been seated to complete the unexpired term; or

2. Direct staff to return on a scheduled special meeting by May 2, 2026, with a resolution calling a special election to be consolidated with the General Municipal Election on November 3, 2026; or

3. 4. Provide alternative direction to staff.

15. REPORT BY CITY MANAGER

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

REPORTS)

17. 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-centermeetings-portal on this 3rd day of April 2026. /s/ DONNA G. SCHWARTZ, CMC
Chief Deputy City Clerk

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COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 6 through 10, 2026, as “National Community Development Week”
The City Council will present a Proclamation proclaiming April 6 through 10, 2026, as “National Community Development Week” to celebrate and showcase the programs and projects which are funded by federal grant programs like Community Development Block Grants and HOME Investment Partnership.

BACKGROUND:

This year marks the 52nd anniversary of the Community Development Block Grants (CDBG) Program. Since then, CDBG has provided the City of Santa Maria with an important funding source to address various needs, primarily for low- to moderate-income residents. This includes assisting those experiencing homelessness, at-risk youth, seniors, individuals with special needs, public improvements, and affordable housing.

For 36 years, since 1990, the HOME Investment Partnership (HOME) program has helped communities provide access to affordable housing for low-income households.

The City has participated in the HOME program as part of a consortium with the County of Santa Barbara since the consortium’s inception in 1995. HOME also funds the City’s successful Tenant-Based Rental Assistance (TBRA) Program, which provides up to $2,500 in rental deposit assistance to qualifying households.

DISCUSSION:

The City receives an average of $1.4 million annually in CDBG funds. These funds help dozens of non-profit agencies offer a variety of programs, including senior, legal, youth, substance abuse, homelessness, mental health, health, and domestic violence services.

Non-profit agencies have also assisted with Capital funding for improvements to their public facilities, providing minor home repairs to residents in Santa Maria, and revitalizing existing neighborhoods.

The City receives an average of $300,000 annually in HOME funding and has historically contributed to local affordable housing projects. It also funds the TBRA program. Since 2010, the TBRA program has successfully provided security deposit assistance to extremely low- and very low-income families in Santa Maria. There is no other program of its kind in the City.
2 CDBG and HOME are administered nationally by the U.S. Department of Housing and Urban Development (HUD). These programs are needed more than ever to help the City’s most vulnerable residents and improve the overall condition of the City’s neighborhoods.

Every dollar of CDBG and HOME funding leverages more than five dollars in other funding, bringing additional vital resources to communities.

Proclamation Requested by: Rosie Rojo, Community Programs Manager Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, the week of April 6 through 10, 2026, has been designated as “National Community Development Week” to recognize and celebrate the Community Development Block Grant (CDBG) Program and the HOME Investment Partnership (HOME) Program; and
WHEREAS, since 1974, the CDBG Program has provided annual funding and flexibility to local communities to provide affordable housing, a suitable living environment, and basic human services; and
WHEREAS, since 1990, the HOME Program has created and preserved affordable housing for low-income families; and
WHEREAS, annually, the City of Santa Maria receives an average of $1.4 million in CDBG funds and an average of $300,000 in HOME funds.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria, do hereby recognize the week of April 6 through 10, 2026, as:
“NATIONAL COMMUNITY DEVELOPMENT WEEK”
in the City of Santa Maria to celebrate and showcase the programs and projects which are funded by federal grant programs like Community Development Block Grants and HOME Investment Partnership.

IN WITNESS WHEREOF, I hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto on this 7
th day of April 2026.

Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 13 through 20, 2026, as “International Dark Sky Week”
The City Council will present a Proclamation proclaiming April 13 through 20, 2026, as “International Dark Sky Week” in the City of Santa Maria.

BACKGROUND:

Santa Maria recognizes the importance of preserving its star-filled night sky, noting that light pollution negatively impacts the environment, wildlife, agriculture, and human health.

By promoting responsible lighting practices, the City supports efforts to reduce light pollution. The week of April 13 through 20, 2026, is proclaimed as “International Dark Sky Week,” encouraging residents to adopt night sky–friendly lighting and appreciate the beauty of the night sky.

Proclamation Requested by: Mike Wondolowski
Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, the natural beauty of Santa Maria, including its star-filled night sky, is valued by residents and visitors, inspiring wonder and fostering interest in science and nature among children and youth; and
WHEREAS, light pollution obscures the stars and has proven negative economic, environmental, and health impacts for plants, animals, and humans; and WHEREAS, Santa Maria’s agriculture is affected by light pollution, which can disrupt pollination, plant growth, and crop yields; and WHEREAS, local wildlife and natural areas are impacted, with light pollution disrupting migratory birds, nocturnal animals, and ecosystem health; and WHEREAS, reducing light pollution can be achieved by directing outdoor lighting downward and using it only when necessary, and DarkSky International promotes these practices through International Dark Sky Week to benefit life on Earth.

NOW, THEREFORE, I ALICE M. PATINO, Mayor of the City of Santa Maria hereby proclaim the week of April 13 through 20, 2026 as:
“International Dark Sky Week”
in the City of Santa Maria, and I urge residents to learn about night sky friendly lighting, to implement practices and improvements that will reduce light pollution, and to look up and experience the wonder of the star-filled night.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 7 th day of April 2026.

______________________________
Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Dawn Jackson, Library Director
DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 19 through 25, 2026, as “National Library Week”
The City Council will present a Proclamation proclaiming April 19 through 25, 2026, as National Library Week in the City of Santa Maria.

BACKGROUND:

National Library Week was created in 1958 as a national observance sponsored by the American Library Association (ALA) and libraries across the country to celebrate the contributions of libraries and Librarians to their communities. At the time, research showed people were spending less time on books and more time on radios and television, which prompted the formation of the National Book Committee. The goals of the Committee were to encourage people to read, improve incomes and health, and develop a strong and happy family life. The ALA assumed full sponsorship of National Library Week in 1974 to recognize the efforts of libraries and Librarians to meet the needs of the diverse communities they serve.

The Santa Maria Public Library (Library) is committed to upholding the values of National Library Week and encourages community members to take advantage of the Library’s varied collection of print and electronic material, specially curated programming to meet community needs, and free services to support early literacy skills and continuing educational support. The Library is committed to continuously evolving to meet the changing needs of the community, provide meaningful services, and improve the quality of life for all community members.

DISCUSSION:

The Library is celebrating National Library Week, April 19 through 25, 2026, by bringing awareness to the creative ways in which libraries connect with patrons and help patrons connect with each other through programming, digital materials access, and service throughout the community at outreaches, and bookmobile stops. These measures uphold the Library’s goal to extend its services beyond the physical building, promote literacy, and connect community members with Library resources.

The Santa Maria Public Library is celebrating National Library Week’s theme of “Find Your Joy!” by hosting programs such as Mad Scientist Club, Music and Movement, Flirty 2 Fiction Book Club, Makerspace, Paws to Read, Passport Pals and more! In addition to printed materials, patrons can use the Library of Things collection to embrace their curiosity and find joy through learning a new skill or exploring a new hobby. The Library’s website is an excellent resource for the public to connect with the Library and its staff. By embracing technology and remaining up to date with current trends, the Library strives to draw in new patrons who aren’t aware of the wide variety of services offered in today’s libraries.

Proclamation Requested by: Dawn Jackson, Library Director Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, National Library Week was created in 1958 as a national observance sponsored by the American Library Association and libraries across the country to celebrate the contributions of libraries and Librarians; and
WHEREAS, the theme of National Library Week, “Find Your Joy!” promotes the idea that libraries are places for the community to connect with others, and library resources to positively impact their lives; and
WHEREAS, the Santa Maria Public Library (Library) is committed to upholding the values of National Library Week and encouraging community members to spark joy by connecting with the Library’s varied collection of materials and resources; and WHEREAS, the Library is celebrating National Library Week by hosting a variety of programming, embracing patron curiosity through the Library of Things collection, Makerspace program, and substantial resources on its website; and
WHEREAS, the Library strives to meet the needs of the community through enhanced collections, thoughtful programs, and outreach services; and WHEREAS, Librarians are trained professionals and help people of all ages and backgrounds discover and interpret the information they need to live, learn, and work.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria, hereby recognize April 19 through 25, 2026, as:
“NATIONAL LIBRARY WEEK”
in the City of Santa Maria and encourage all residents to find joy at the Santa Maria Public Library or one of its branch libraries through curated programming, technology, early literacy skills, community connection and services to enhance lifelong learning.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 7
th day of April 2026.

Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Dennis Smitherman, Interim Director of Recreation and Parks DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 20 through April 25, 2026, as “Arbor Week”.

The City Council present a Proclamation proclaiming April 20 through 25, 2026, as “Arbor Week” in the City of Santa Maria and invite all residents and businesses to celebrate and take part in the festivities by planting trees and acknowledging the important role trees have in the City.

BACKGROUND:

The City of Santa Maria joins the nation in celebration of trees and the impacts they have on our community and the world. The Nation proclaims April 15 of each year as “Arbor Day”. Nationally, Americans are encouraged to plant, maintain and appreciate the country’s vast forests, orchards, and woodlands.

DISCUSSION:

Founded by J. Sterling Morton, Arbor Day plays an important role in reminding the public of the many benefits trees provide, including clean air, beautiful communities, and shelter for wildlife. The Santa Maria Recreation and Parks Department has scheduled tree plantings and outdoor education programs for our residents.

While Arbor Day is celebrated nationally at the end of April, this proclamation will set April 20 - 25 as Arbor Week in the City of Santa Maria.

Fiscal Considerations:

Funding to purchase the trees and necessary supplies is provided for in the Recreation and Parks Department’s FY 2025 - 2026 Budget.

Impact to the Community:

Honoring Arbor Week allows the entire community to come together and celebrate the many ways trees benefit not only the City, but the entire world. By showing appreciation and commitment to tree conservation, the community sets an example for younger generations to follow, thus ensuring the spirit of the celebration continues. 2 The City of Santa Maria's Urban Forest contains over 27,000 trees. Some of these are in parks, and others like our City streets. City trees make our urban neighborhoods more livable. Trees create a buffer from the often-frantic pace of urban life, they aid in cooling our homes, provide habitat for urban wildlife, help reduce the global greenhouse effect, and absorb noise, pollutants, and unpleasant odors. City trees soften the impacts of concrete and asphalt with greenery. They can buffer noise, block winds, cool temperatures, absorb carbon dioxide, replenish oxygen, and filter air and water. An "urban forest" is not just trees, but a biological community closely connected to the human community's quality of life.

Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, Arbor Day and Arbor Week are celebrated nationally to encourage Americans to maintain and replenish the country’s vast forest, orchards, urban areas, and woodlands; and WHEREAS, Arbor Day is celebrated nationally to encourage Americans to maintain and replenish the country’s vast forests, orchards, urban areas, and woodlands. Arbor Day is celebrated throughout the Nation by urging residents to observe the day with appropriate tree planting activities and programs; and
WHEREAS, the residents of Santa Maria recognize that trees are a vital resource in beautifying the community’s environment and relieving our carbon footprint and serving as valuable economic assets in the City; maintaining or increasing property values and attracting businesses and new residents to Santa Maria; and
WHEREAS, by educating children in the community of the importance of trees, the City of Santa Maria Recreation and Parks Department is working to ensure Arbor Day remains an important day to future generations and is coordinating activities with local schools to educate children on the many benefits trees provide, as well as the history of Arbor Day; and WHEREAS, through an Arbor Day Proclamation, President Theodore Roosevelt announced, “A people without children would face a hopeless future; a country without trees is almost as hopeless.” The President’s message still rings true today.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria hereby recognize April 20 - 25, 2026, as:
“ARBOR WEEK”
in the City of Santa Maria and invite all residents and businesses to celebrate and take part in the festivities by planting trees and acknowledging the important role trees have in the City.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 7
th day of April 2026.
______________________________
Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 2026, as “Donate Life Month”.

The City Council will present a Proclamation proclaiming April 2026, as “Donate Life Month” in the City of Santa Maria.

BACKGROUND:

Organ, eye, tissue, marrow, and blood donation are life-saving acts of compassion, yet more than 103,000 people nationwide, including over 23,000 in California, are currently awaiting transplants, with an average of 17 individuals dying each day while waiting. The need is particularly urgent in Hispanic, Latino, and African American communities. One donor can save up to eight lives through organ donation and heal more than 75 others through tissue donation.

Last year alone, more than 46,000 lives were saved by organ donors. Individuals of any age or medical condition may register, and doing so does not impact the quality of emergency medical care they receive. Californians can register online, through the Department of Motor Vehicles when applying for or renewing a driver’s license or ID, or learn more about living kidney donation through designated state resources.

Proclamation Requested by: Scott Burns
Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, organ, eye, tissue, marrow, and blood donation are life-giving acts of compassion, yet more than 103,000 people nationwide including over 23,000 in California are currently awaiting transplants, and an average of 17 people die each day while waiting; and WHEREAS, the need is especially urgent in Hispanic, Latino, and African American communities, and a single donor can save up to eight lives through organ donation and heal more than 75 others through tissue donation; and
WHEREAS, more than 46,000 lives were saved by organ donors last year, anyone may register regardless of age or medical condition, and donor registration does not affect the quality of emergency medical care received; and
WHEREAS, Californians may register online at www.donateLIFEcalifornia.org or for Spanish-speakers www.doneVIDAcalifornia.org, sign up when applying for or renewing a driver’s license or ID at the California Department of Motor Vehicles, or learn more about living kidney donation at www.LivingDonationCalifornia.org.

NOW, THEREFORE, I ALICE M. PATINO, Mayor of the City of Santa Maria hereby proclaim April 2026 as:
“Donate Life Month”
in the City of Santa Maria and encourage all Californias to check “YES!” online, or when applying for or renewing their driver’s license or ID card at the DMV.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 7 th day of April 2026.

______________________________
Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 2026 as “Fair Housing Month” The City Council will present a Proclamation to recognize the month of April 2026 as “Fair Housing Month” in the City of Santa Maria and encourage the continued celebration of equal housing opportunities and the progress made in opening the doors to housing opportunities for all residents of Santa Maria.

BACKGROUND:

Established by Congress in 1968, the Fair Housing Act prohibits discrimination in the sale, rental, or financing of any dwelling based on race, color, religion, sex, or national origin.

In 1988, the law was expanded to prohibit discrimination based on disability and familial status. Additionally, California State law prohibits housing discrimination based on gender, gender identity, sexual orientation, genetic information, marital status, and source of income.

DISCUSSION:

To receive Community Development Block Grant (CDBG) and HOME funds, the City is required by the U.S. Department of Housing and Urban Development (HUD) to complete an Analysis of Impediments (AI) to Fair Housing Choice every five years. The AI was updated and submitted to HUD in May of 2020. It includes not only the identification of impediments to fair housing choice but also an action plan to overcome those impediments.

The City also executes an annual agreement with Legal Aid Foundation of Santa Barbara County (Legal Aid) to provide fair housing services in the City. Legal Aid reviews online housing postings for discriminatory content, conducts fair housing testing of apartment complexes in the City, offers free tenants’ rights workshops in several languages, and provides legal representation to families or individuals who are facing unlawful discrimination.

Legal Aid’s goal is to educate landlords and tenants about fair housing rights and responsibilities, negotiate mutually agreeable resolutions to disputes, and if necessary, take enforcement actions necessary to protect equal opportunity to housing in Santa Maria.
2 HUD annually observes the month of April as “Fair Housing Month” on a national level.

According to HUD, equal access to rental housing and homeownership opportunities is the cornerstone of federal housing policy. When people feel welcomed in their neighborhood, they invest resources back into the community and, in turn, make it an appealing place for diverse and talented people to live. Housing discrimination is not only illegal, but it also contradicts the principles of freedom and opportunity that residents value. Therefore, the City of Santa Maria issues a proclamation declaring April as “Fair Housing Month” in the community.

Proclamation Requested by: Rosie Rojo, Community Programs Manager Attachment: Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, the City of Santa Maria recognizes that the United States Congress enacted Title VIII of the Civil Rights Act of 1968, which was amended by the Housing and Community Development Act of 1974, and the Fair Housing Amendments Act of 1988, as the directive for Fair Housing; and
WHEREAS, Fair Housing laws outlined by said Acts guarantee the rights of equal housing opportunities for all residents of the United States, regardless of race, color, religion, sex, national origin, disability or familial status; and
WHEREAS, the United States Department of Housing and Urban Development declares the month of April 2026 as “Fair Housing Month”; and
WHEREAS, the City of Santa Maria contracts with the Legal Aid Foundation of Santa Barbara County to perform random testing of fair housing practices of landlords and property managers; reviews local newspapers for evidence of housing discrimination; assists in resolving discrimination disputes through litigation or referral; makes presentations to Santa Maria adult education classes regarding rights of single parents and ethnic minorities to equal housing opportunities; and conducts community workshops to educate landlords and property managers regarding fair housing.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria, do hereby recognize the month of April 2026, as:
“FAIR HOUSING MONTH”
in the City of Santa Maria, and encourage the continued celebration of equal housing opportunities and the progress made in opening the doors to housing opportunities for all residents of Santa Maria.

IN WITNESS WHEREOF, I hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto on this 7
th day of April 2026.

Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: April 7, 2026
SUBJECT: Proclamation Proclaiming April 2026 as “Sexual Assault and Child Abuse Awareness and Prevention Month”
The City Council will present a proclamation proclaiming April 2026 as “Sexual Assault and Child Abuse Awareness and Prevention Month” in the City of Santa Maria.

BACKGROUND:

Child abuse and sexual assault remain critical issues that threaten the health, safety, and well-being of communities across the nation, impacting individuals and families of every background. The effects of sexual violence and child abuse are profound and long-lasting, often resulting in enduring emotional trauma and physical harm. National statistics indicate that one in four girls and one in six boys will experience sexual abuse before the age of 18, underscoring the urgent need for prevention and early intervention efforts.

Locally, Child Welfare Services investigated 3,927 cases in North County, including 2,811 in the Santa Maria area, with 160 unique allegations of sexual abuse, reflecting the seriousness of this issue within our own community. Effective prevention and response require strong partnerships among social service agencies, schools, faith-based organizations, law enforcement, businesses, and engaged community members. By increasing education, awareness, and community involvement, we can better support survivors, strengthen families, and work collectively to prevent future abuse, ensuring a safer and healthier community for all.

Proclamation Requested by: Ann McCarty – Executive Director of North County Rape Crisis and Child Protection Center
Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, child abuse and sexual assault are serious issues that threaten the health, safety, and well-being of our community and affect individuals of all backgrounds; and
WHEREAS, sexual violence and child abuse cause lasting emotional and physical harm, and prevention must remain a priority, as one in six boys and one in four girls will experience sexual abuse before the age of 18; and
WHEREAS, Child Welfare Services investigated 3,927 cases in North County, including 2,811 in the Santa Maria area, with 160 unique allegations of sexual abuse; and WHEREAS, prevention and awareness efforts are most effective through partnerships among social service agencies, schools, faith-based organizations, law enforcement, businesses, and community members; and
WHEREAS, increasing education, awareness, and community involvement is essential to supporting survivors, strengthening families, and preventing future abuse.

NOW, THEREFORE, I ALICE M. PATINO, Mayor of the City of Santa Maria hereby proclaim April 2026 as:
“Sexual Assault and Child Abuse Awareness and Prevention Month” in the City of Santa Maria and encourage all residents and organizations to work together to prevent abuse, support survivors, and promote the safety and well-being of our community.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 7th day of April 2026.

______________________________
Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: April 7, 2026
SUBJECT: Presentation – Santa Maria Downtown Multimodal Assessment Description:

The City Council will receive a presentation regarding the Santa Maria Downtown Multimodal Assessment (SMDMA) funded by Caltrans.

BACKGROUND:

Since June of 2025, Caltrans has been collaborating with the City of Santa Maria, the Santa Barbara Association of Governments (SBCAG), and Santa Maria Regional Transit (SMRT) on the development of the Santa Maria Downtown Multimodal Assessment (SMDMA). The SMDMA is a feasibility study that identifies practical multimodal enhancements through a collaborative process involving partner agencies, public feedback, and internal Caltrans units.

Specifically, this assessment presents a strategic vision for multimodal improvements along State Route (SR) 166 (Main Street) and SR 135 (Broadway) within downtown Santa Maria, focusing on approximately half a mile of each corridor where they intersect at the City’s core. The assessment builds off existing planning studies completed by the City of Santa Maria, including the 2019 Downtown Multimodal Streetscape Plan, to identify project concepts aimed at enhancing Broadway and Main Street as multimodal corridors, improving accessibility and connectivity for all users to key destinations throughout downtown and its surrounding communities.

A Caltrans Assessment provides specific scope recommendations necessary to begin projects. Funding for this assessment is provided by Caltrans.

Initial outreach activities have been completed and were designed to engage the community.
 Assessment website (bilingual) - Santa Maria Downtown Multimodal Assessment  Downtown Friday - September 25, 2025
 Community survey in September – October 2025
 Numerous partner meetings between the City of Santa Maria, Caltrans, SBCAG, and SMRT
2 DISCUSSION:

At the City Council meeting scheduled for April 7, 2026, Caltrans, in partnership with the City, will present several preliminary concepts. These conceptual designs were guided by existing planning documents, early community input, and partner feedback. It is important to note that these concepts are subject to further refinement throughout subsequent project phases.

Additional opportunities for public input will be provided at upcoming outreach events:
 Downtown Fridays: April 10, 2026.
 Machado Plaza food truck event: April 15, 2026.

As conceptual designs evolve, ongoing dialogue will play a critical role in shaping final outcomes and creating concepts that reflect community values. Finally, establishing a shared maintenance agreement between the City and Caltrans ensures that responsibilities are clearly defined, facilitating smooth transitions into future project phases and ongoing stewardship of new infrastructure.

Attachment(s):

A. Santa Maria Downtown Multimodal Assessment (SMDMA) Factsheet Santa Maria Downtown Multimodal Assessment

ABOUT THE

FEASIBILITY STUDY
The Santa Maria Downtown Multimodal Assessment will identify bicycle and pedestrian improvements to help meet the needs of the community.

What’s Next?
Spring Community Input
We’ll be coordinating
community outreach events
in the spring to share
preliminary design concepts
and hear your feedback,
helping shape the project
together!
Attachment A

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: April 7, 2026
SUBJECT: Presentation – Value of Volunteering
The City Council will receive a presentation about the value of volunteering for the health of the community and the volunteer.

BACKGROUND:

Volunteering plays a vital role in strengthening the health of both communities and the individuals who serve them. By giving time and energy to support local needs—whether through food drives, mentorship, or community cleanups—volunteers help create safer, more connected environments where people can thrive. At the same time, volunteering benefits the volunteer by reducing stress, fostering a sense of purpose, and building social connections that improve emotional well-being. This mutual exchange not only addresses immediate challenges but also builds a culture of compassion and resilience that supports long-term community health.

DISCUSSION:

A Volunteer Fair will be held on April 19th, 2026, at the Santa Maria Town Center Mall.

Presentation requested by Midge Nicosia, Community Partners in Caring.

Attachment(s): None.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Christopher Williams, Chief of Police
DATE: April 7, 2026
SUBJECT: Presentation – Commander Daniel Rios’ Graduation from the FBI National Academy
The City Council will receive a presentation regarding Commander Daniel Rios’ recent attendance and graduation from the FBI National Academy.

BACKGROUND:

Established in 1935, the FBI National Academy (FBINA) in Quantico, Virginia, is a prestigious 10-week residential training program for law enforcement leaders, aimed at standardizing and professionalizing police forces. Internationally known for its academic excellence, the National Academy offers 10 weeks of advanced communication, leadership, and fitness training. Participants must have proven records as professionals within their agencies to attend. On average, these officers have 21 years of law enforcement experience and usually return to their agencies to serve in executive-level positions.

The Academy was founded by J. Edgar Hoover to "raise the level of professionalism nationwide" by providing federal assistance to local police departments. It is often regarded as a premier training school for law enforcement managers, having trained thousands of law enforcement leaders from all 50 states, U.S. territories, and more than 160 countries.

DISCUSSION:

Commander Daniel Rios was selected to attend the 297th session of the FBI National Academy and graduated on March 18, 2026, alongside 253 law enforcement leaders.

The 297th session of the National Academy consisted of men and women from 48 states and the District of Columbia. The class included members of law enforcement agencies from 24 countries, four military organizations, and four federal civilian organizations. Only the top one percent of law enforcement leaders is selected to attend this prestigious leadership program.

Police Commander Daniel Rios is a lifelong Santa Maria resident with more than 25 years of law enforcement experience. Commander Rios graduated from Santa Maria High School and holds an Associate of Science in Administration of Justice from Allan Hancock College, a Bachelor of Science in Criminal Justice from California Coast University and is 2 currently completing a Master of Arts in Organizational Leadership. He is a proud graduate of the Santa Maria Valley Chamber of Commerce’s Leadership Santa Maria Valley program, and the Sherman Block Leadership Institute (Class 277). Throughout his career, Commander Rios has served in and supervised a wide range of assignments, including Patrol, Field Training Officer, Detective Bureau, Crime Lab, Property and Evidence, Community Services Unit, K-9 Unit, Public Information Officer, Training Bureau, Traffic Unit, Range – Firearms Training Unit, Arrest & Control (ARCON) Unit, Mobile Field Force, Mounted Enforcement Unit and SWAT.

Deeply invested in the community, Commander Rios is a proud Boys & Girls Club alumnus and serves on the Boards of Directors for the Boys & Girls Clubs of the Mid Central Coast and Pacific Christian Center. He has coached youth sports, served on PTA boards, and remains active with the Boys & Girls Club Alumni Committee (Railroad Avenue location), and the Santa Maria Police Council. He and his wife are lifelong Santa Maria residents committed to the City’s continued growth and well-being. 1 CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA March 3, 2026, 5:00 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, 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
At 4:32 p.m. Mayor Patino called the meeting to order.

ROLL CALL:

MEMBERS PRESENT:

Councilmember Aguilera, Councilmember Soto, Mayor Pro Tem Flores, and Mayor Patino.

MEMBERS ABSENT:

Councilmember Escobedo.

STAFF MEMBERS PRESENT:

City Manager David W. Rowlands, City Attorney Thomas Watson, Assistant City Manager Chuen Wu, Chief Human Resources Officer Graciela Reynoso, and Chief Deputy City Clerk Donna G. Schwartz.

2. PUBLIC COMMENT PERIOD
Mayor Patino opened public comment, there being none, closed public comment.

3. RECESS-CLOSED SESSION
At 4:32 p.m. Mayor Patino recessed to Closed Session.

3.a Conference with Labor Negotiators, Pursuant to California Government Code §54957.6

3.b Conference with Legal Counsel - Existing Litigation Pursuant to California Government Code §54956.9(d)(1) [one case]

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

5. INVOCATION
Pastor Mark Wright of Heritage Church gave the Invocation. 2 6. PLEDGE OF ALLEGIANCE
Councilmember Escobedo led the Pledge of Allegiance.

7. CALL TO ORDER
Mayor Patino called the meeting to order at 5:37 p.m.

Councilmember Escobedo joined the meeting for open session.

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

9. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Mayor Patino invited public comment. Speaking from the public was Gary Hall, Rachelle Carr, and Dena Rae Soares.

Councilmember Carlos Escobedo submitted his resignation as City Councilmember for District 1, effective immediately, and then departed the meeting.

10. CONSENT CALENDAR
Consent Calendar Items 10.a.1 through 10.g.1 were approved as presented, including the adoption of Resolution Nos. 2026-31, 2026-32, 2026-33, 2026-34, 2026-35, and 2026-36. The recorded vote appears with each item below.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
Adopt the Consent Calendar as submitted.

Ayes (4): Councilmember Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Soto, and Mayor Patino
Motion carried by a recorded vote (4 to 0)

10.a CITY MANAGER/CITY CLERK DEPARTMENT

10.a.1 Ordinances and Resolutions
Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
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

10.a.2 Approval of Minutes
Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
Approved the Minutes of the regular City Council meeting of February 17, 2026.

Motion carried by a recorded vote
3 10.a.3 Adoption of a Resolution Canceling the Regular City Council Meetings on Tuesday, March 17, April 21, and May 19, 2026
Action: Adopted as Resolution No. 2026-31.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
Adopted a Resolution canceling the regular City Council meetings on Tuesday, March 17, April 21, and May 19, 2026.

Motion carried by a recorded vote

10.b COMMUNITY DEVELOPMENT DEPARTMENT

10.b.1 2025 General Plan Annual Report
Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
Directed 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.

Motion carried by a recorded vote

10.c FINANCE DEPARTMENT

10.c.1 Payment of Warrants
Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
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.

Motion carried by a recorded vote

10.c.2 Payment of Payroll
Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
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
4 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
Action: Adopted as Resolution No. 2026-32.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera

1. Adopted 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. Authorized 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.

Motion carried by a recorded vote

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
Action: Adopted as Resolution No. 2026-33.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera

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

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

Motion carried by a recorded vote

10.f PUBLIC WORKS DEPARTMENT

10.f.1 Adoption of a Resolution Authorizing a Sole Source Agreement with Genfare, LLC for Genfare Link Subscription
Action: Adopted as Resolution No. 2026-34.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera

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

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

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

Action: Adopted as Resolution No. 2026-35.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera

1. Adopted 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

2. Authorized the City Manager, or designee, to execute the assignment to purchase agreement
Motion carried by a recorded vote

10.g UTILITIES DEPARTMENT

10.g.1 Adoption of a Resolution Authorizing the Purchase of Two Emergency Power Generators Action: Adopted as Resolution No. 2026-36.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera

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

2. Authorized the City Manager, or designee, to execute all necessary documents to complete the purchase.

Motion carried by a recorded vote

11. REGULAR BUSINESS

11.a Introduction of an Ordinance Amending Ordinance No. 2025-03, Revising Titles 2 and 10 of the Santa Maria Municipal Code
Interim Director of Recreation and Parks Dennis Smitherman presented the staff report.

Action: Introduced as Ordinance No. 2026-01.

Moved by: Councilmember Soto
Seconded by: Councilmember Aguilera
The City Council to:

1. Waived 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

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

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

Ayes (4): Councilmember Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Soto, and Mayor Patino
Motion carried by a recorded vote (4 to 0)
6 11.b Measure U Annual Report for the Period Ending June 30, 2025, as Submitted by the Measure U Citizens’ Oversight Committee
Director of Finance Rebecca Campbell presented the staff report.

Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores

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

2. Received and filed the Measure U Citizens’ Oversight Committee Fiscal Year 2024-25 Annual Report.

Ayes (4): Councilmember Aguilera, Mayor Pro Tem Gloria Flores, Councilmember Soto, and Mayor Patino
Motion carried by a recorded vote (4 to 0)

11.c Continued from September 16, 2025, City Council Meeting - Discussion on a Request to Form an Immigration Ad Hoc Committee
City Manager David Rowlands presented the staff report.

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

Mayor Patino invited public comment. Speaking from the public were Cliff Solomon, Mayra Abigail Lopez Lopez, Elvia Salazar, Emily Cruz Diaz, Robert Gibson, Lorena M., Teresa Suarez, Fernando Martinez, Adam, Cristina Merida, Patricia Solorio, Saul Martinez, Steve Simonsen, Armando Santiago, Raul Olivera, Sergio Castillo, Yajaira Arroyo, Michelle Ambriz, Rene Salinas, Isaac Gil, Sofia Navarro, and Rachelle Carr.

Chief Deputy City Clerk Donna Schwartz announced that four written public comments were received from Danny Mogg, Sue and Larry Heitman, Hunter Jameson, and Joyce Ellen Lippman.

Moved by: Mayor Patino
Seconded by: Councilmember Aguilera
Form Immigration Ad Hoc Committee.

Ayes (2): Councilmember Aguilera, and Councilmember Soto Noes (2): Mayor Pro Tem Gloria Flores, and Mayor Patino Motion defeated by a recorded vote (2 to 2)

12. REPORT BY CITY MANAGER
City Manager Rowlands reported that the next City Council meeting is scheduled for Tuesday, April 7, 2026. Agenda items will include presentations on Drones as First Responders and the Real Time Crime Center, as well as a presentation on Red Light Cameras. The meeting will also include a public hearing on the draft Community Development Block Grant (CDBG) Action Plan recommendations for Fiscal Year 2026–27 and a regular business item regarding the Special Budget Policy. 7 13. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB 1234 REPORTS) Councilmember Flores stated she participated in Read Across America at Ontiveros Elementary School and the Special Meeting of the City of Santa Maria City Council, Goals Setting Workshop on Saturday, February 28, 2026.

Councilmember Aguilera announced she attended the 5-Year Resolution Meeting, a Retirement Celebration, the Special Meeting of the City of Santa Maria City Council, Goals Setting Workshop on Saturday, February 28, 2026, and the EconAlliance AG Forum.

Councilmember Soto stated that she attended the State of Education meeting, the Budget Ad Hoc Committee meeting, the Urban Planning Concepts Cook Street Apartments meeting, the Special Meeting of the City of Santa Maria City Council, Goals Setting Workshop on Saturday, February 28, 2026, and the Public Budgets and Revenue meeting.

Mayor Patino reported she attended the following: The Ben Heighes Show, Marian Foundation Breakfast with the President meeting, Quarterly City–Commerce Meeting with Vandenberg Space Force Base, Santa Barbara County Association of Governments (SBCAG) Board of Directors meeting, annual one-on-one meeting with SBCAG, Mayor’s Youth Task Force meeting, the University of California Student and Policy Center Conference on Housing, 2026 State of Education meeting at Allan Hancock College, EconAlliance AG Forum, the Special Meeting of the City of Santa Maria City Council, Goals Setting Workshop on Saturday, February 28, 2026, and participated in Read Across America at Ontiveros Elementary School.

14. ADJOURNMENT
There being no further business before the City Council, Mayor Patino declared the City Council meeting adjourned at 7:34 p.m. in memory of Linda Glines.

Chief Deputy City Clerk Alice M. Patino, Mayor
1 CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA March 17, 2026, 5:00 p.m.

City Hall Council Chambers
110 East Cook Street
Santa Maria
Roll Call: Councilmember Gloria Soto, Mayor Pro Tem Gloria Flores, Mayor Alice Patino
Members Absent: Councilmember Maribel Aguilera
Staff Present: City Manager David W. Rowlands, City Attorney Thomas Watson, Director of Finance Rebecca Campbell, Chief Human Resources Officer Graciela Reynoso, Chief Deputy City Clerk Donna Schwartz _____________________________________________________________________

CLOSED SESSION

1. CALL TO ORDER
Invocation was given by Reverend Neil Platon of First Methodist Church.

At 5:12 p.m. Mayor Patino called the meeting to order.

ROLL CALL:

MEMBERS PRESENT:

Councilmember Soto, Mayor Pro Tem Flores, and Mayor Patino.

MEMBERS ABSENT:

Councilmember Aguilera.

STAFF MEMBERS PRESENT:

City Manager David W. Rowlands, City Attorney Thomas Watson and Chief Deputy City Clerk Donna G.

Schwartz.

2. PUBLIC COMMENT PERIOD
Mayor Patino opened public comment, there being none, closed public comment.

3. RECESS-CLOSED SESSION
At 4:30 p.m. Mayor Patino recessed to Closed Session.

3.a Conference with Legal Counsel - Existing Litigation Pursuant to California Government Code §54956.9(d)(1) [two cases]

3.b Conference with Labor Negotiators, Pursuant to California Government Code §54957.6

4. RECONVENE TO OPEN SESSION

5. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION
City Attorney Watson reported that instructions were provided to the counsel for two cases on item

3.a. Item 3.b was continued to a future meeting.
2 6. ADJOURNMENT
There being no further business before the City Council, Mayor Patino declared the City Council meeting adjourned at 6:08 p.m.

Chief Deputy City Clerk Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chuen Wu, Assistant City Manager
DATE: April 7, 2026
SUBJECT: Support for CommUnify Head Start/Early Head Start Child Care Center Description:

The City Council will consider support for CommUnify’s application for County of Santa Barbara Community Development Block Grant funding to establish a Head Start/Early Head Start Child Care Center, including waiver of City permitting and licensing fees.

RECOMMENDATION:

1. Authorize support for the nonprofit organization CommUnify’s grant application to the County of Santa Barbara for Community Development Block Grant (CDBG) funds to establish a Head Start/Early Head Start Child Care Center at 420 East Fesler Street, including a local match in the form of in-kind contributions that may include a waiver of City permitting fees; parking lot striping; and the waiver of City business licensing fees in an amount not to exceed $25,080; and

2. Authorize the City Manager, or designee, to execute all related documents.

BACKGROUND:

The nonprofit agency CommUnify (formerly the Community Action Commission of Santa Barbara County) has operated the Head Start program in Santa Barbara County since 1967. This program reaches up to 572 very low-income, predominantly Hispanic parents of children (ages 0-5) enrolled in Head Start/Early Head Start centers countywide, from Carpinteria to Cuyama.

The County of Santa Barbara facilitates access to its CDBG funding through a competitive grant process. Proposed projects are scored based on a variety of factors, with a local match contribution from the project’s host city factored into the scoring.

DISCUSSION:

CommUnify reached out to the City of Santa Maria for support, including an in-kind and/or cash contribution, for County CDBG funding to support the purchase and renovation of a building formerly used as a preschool located at 420 East Fesler Street in Santa Maria. 2 Once complete, the facility will be used as a licensed Head Start/Early Head Start childcare center that will serve up to 70 low-income children aged 0-5. CommUnify has indicated that up to 60 percent of children and families served by this project will reside within the City limits of Santa Maria.

With a 59-year history providing childcare and education through the Head Start Program, experience with the social and cultural context of the Santa Maria community, and access to various additional services through the organization, CommUnify proposes to provide enhanced childcare access as well as wraparound support to aid families attending the proposed Fesler center.

To achieve this goal and enhance CommUnify’s application for County CDBG funding, staff proposes in-kind contributions in an amount not to exceed $25,080. Contributions may include the waiver of City permitting fees, including both Building fees and Public Works – Engineering fees; parking lot striping; and the waiver of City business licensing fees.

Alternatives
The City Council may decide to support CommUnify’s application, but abstain from financial support for the project.

The City Council may also elect not to support CommUnify’s application.

Fiscal Considerations
Up to $25,080 in permitting and licensing fee waivers and/or costs for parking lot striping.

Impact on the Community
The proposed Head Start/Early Head Start Center would provide licensed childcare for very low-income families, including up to 70 children ages 0-5. Up to 60 percent of the children served by this project will be City residents.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Thomas Watson, City Attorney
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Approving the Donation of Salvador Dali Destino Paintings from John and Nina Baldwin
Description:

The City Council will consider adopting a Resolution approving the receipt of donation of Salvador Dali Destino paintings from John and Nina Baldwin to the City of Santa Maria.

RECOMMENDATION:

Adopt a Resolution approving the donation of Salvador Dali Destino paintings to the City of Santa Maria from John and Nina Baldwin.

BACKGROUND:

Throughout his career, Walt Disney compiled several short features for theatrical release and conceptualized a Mexican ballad for one of his musical shorts, which ultimately became known as Destino. Destino captured the interest of Salvador Dali, and in 1945, the duo formed a partnership to produce paintings, drawings, and storyboards, for the film. Due to the financial repercussions resulting from World War II, the short was put on hold in 1947 and was not resumed until 1999, when Walt Disney’s nephew completed the project. Destino made its theatrical debut in 2003 and received a nomination for the Academy Award for Best Animated Short Film.

DISCUSSION:

Government Code Section 37354 of the California Government Code states that, “The legislative body may accept or reject any gift, bequest, or devise made to or for the city, or to or for any of its officers in their official capacity or in trust for any public purpose.” City Administration Memo 2017-01, Gift and/or Donation Policy, sets forth procedures for reviewing, accepting, and acknowledging gifts and/or donations offered to the City to:
2 1. Establish compliance with the law in a consistent manner regardless of the source of the donation.

2. Establish uniform procedures for the receipt of donations to the City.

3. Cultivate an environment where residents and businesses want to contribute to the City’s programs and facilities.

4. Promptly acknowledge and express appreciation for donations.

5. Assure donations are properly inventoried and accounted for.

Alternative(s)
An alternative would be to decline the donation, which would result in the loss of a significant piece of history.

Fiscal Considerations
The donation is valued at $34,000 and does not have an impact on the General Fund. In accordance with the City’s Gift and/or Donation Policy, donations valued at more than $25,000 must be accepted by the City Council.

Impact on the Community
Donations such as Destino enrich the lives of community members by providing free access to art that would typically stay within a private collection.

ATTACHMENT(S)
A. Resolution
B. Art Agreement
C. Photos of Art Pieces Donated
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING THE DONATION OF SALVADOR DALI DESTINO

PAINTINGS TO THE CITY OF SANTA MARIA

FROM JOHN AND NINA BALDWIN
WHEREAS, John and Nina Baldwin donated Salvador Dali artwork with an estimated value of $34,000; and
WHEREAS, Government Code Section 37354 of the California Government Code states that, “The legislative body may accept or reject any gift, bequest, or devise made to or for the city, or to or for any of its officers in their official capacity or in trust for any public purpose;” and
WHEREAS, the City’s Gift and/or Donation Policy CAM 2017-01 requires offers of monetary donations or items valued more than $25,000 must be accepted by the City Council.

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

SECTION 1. Accept the donation of Salvador Dali artwork from John and Nina Baldwin with an estimated value of $34,000 and direct the City Manager, or designee, to prepare a letter of appreciation to John and Nina Baldwin.

SECTION 2. 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 7
th day of April 2026.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

DONATION AGREEMENT
This Donation Agreement ("Agreement"} is made and entered into this 4th day of September, 2025, by and between John and Nina Baldwin ("Granter"}, and City of Santa Maria, a California Municipal Corporation ("Grantee"}.

1. DONATION
Granter, being the lawful owner and creator of the artwork ("Artwork"}, hereby agrees to donate the Artwork piece to Grantee without financial compensation. The pieces are further described as Salvador Dali Destine paintings, documentation attached hereto as Attachment A.

2. ACCEPTANCE
Grantee acknowledges receipt of the donated item and accepts it as a gift for preservation, display, or other purposes as determined by Grantee.

3. CONDITION OF ARTWORK
Granter represents and warrants that:
a. The original artwork is owned by Granter.
b. The ship is in good condition and suitable for public exhibition. c. There are no liens, encumbrances, or claims against the Artwork.

4. USAGE RIGHTS & DISPLAY
Grantee shall have the full right to display, store, and manage the artwork as it sees fit, including but not limited to showcasing it in public spaces, exhibitions, or other locations.

5. LIABILITY
Upon transfer, Granter shall no longer hold responsibility for any damage, loss, or alteration of the Artwork. Grantee assumes all risks associated with storage, maintenance, and exhibition of the donated Artwork.

6. TAX DONATION
To the greatest extent possible, the Grantee accepts the artwork, valued at Thirty Four Thousand Dollars ($34,000.00}, as a donation to the public, for the public good and to enhance the community of Santa Maria. The Grantee hereby provides this written proof of donation for Grantor's tax deduction. No goods or services are provided by the City in return 1 --
Attachment B.
for the contribution. If further documentation is required, the City agrees to provide the same.

7. GOVERNING LAW
This Agreement shall be governed and construed under the laws of the State of California.

9. SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Agreement as follows:

Grantor:

John Baldwin
Grantee:

City of Santa Maria
e: Thomas Watson
2 Attachment B.

Attachment C.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Approving Entering into the California Home Energy Renovation Opportunity (HERO) Program and Approve Amendment to Joint Powers Agreement
Description:

The City Council will consider adopting a resolution authorizing the City to enter the Home Energy Renovation Opportunity (HERO) Program, administered by the Western Riverside Council of Governments (WRCOG).

RECOMMENDATION:

1. Adopt a Resolution consenting to the inclusion of properties within the City’s jurisdiction in the California HERO Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric vehicle charging infrastructure and approving the amendment to a certain Joint Powers Agreement between City of Santa Maria and Western Riverside Council of Governments related thereto;

2. Authorize the membership of the City of Santa Maria in the WRCOG; authorizing WRCOG to accept applications from property owners, conduct contractual assessment proceedings and levy contractual assessments within the territory of the City; and

3. Authorize the City Manager, or designee, to execute all related documents; and authorize related actions.

BACKGROUND:

Under the leadership of the City Council, the City of Santa Maria has identified economic development as a key priority to create jobs and enhance economic stability for the community. Yet current market conditions, including the effects of inflation as well as high interest rates for construction loans, can present challenges in financing new development.

In an effort to provide new tools to foster economic development within the City, the Santa Maria City Council adopted the Bond Opportunities for Land Development (BOLD) 2 Program through the California Municipal Finance Authority (CMFA) and the Statewide Community Infrastructure Program (SCIP) through the California Statewide Communities Development Authority (CSCDA) on September 16, 2025. These programs provide lowinterest bond funds for capital infrastructure to support new projects. Additionally, the City Council adopted the CSCDA’s Open Property Assessed Clean Energy (PACE) Program on November 18, 2025, to provide a new funding mechanism for commercial and residential property owners to finance energy efficiency, renewable energy, water conservation, and seismic improvements.

The proposed HERO Program would join the Open PACE Program as another option for financing energy efficiency and related improvements. The key difference between these offerings is that the HERO Program has no minimum amount for project financing. HERO would thus allow smaller projects to access similar funding opportunities to large-scale projects, thus facilitating development.

Administered entirely by the WRCOG, the proposed program requires no City expenditures or staff time.

DISCUSSION:

The HERO Program was launched by WRCOG in December 2011 as a Property Assessed Clean Energy (PACE) initiative. It allows residential and commercial property owners to finance the installation of eligible energy efficiency, renewable generation, and water conservation improvements, with repayment as an item on the property owner's property tax bill.

Eligible improvements include energy-efficient HVAC systems, cool roof systems, windows and doors, solar thermal water heating, insulation, weatherization, indoor lighting, and water efficiency measures. All financed products must meet Energy Star, California Title 24, or WaterSense requirements.

While the program was initially available in the WRCOG subregion, it expanded in 2013 to availability throughout California. Recently, WRCOG approached staff to request the City of Santa Maria’s support for the program, as the organization is working with a local business who wishes to utilize HERO.

All responsibility for program administration, including the conduct of assessment proceedings; levy of assessments; any required remedial action in the case of delinquencies in assessment payments; and the issuance, sale or administration of bonds issued in connection with the program rests with the WRCOG. No staff time is required from the City, and costs are fully funded by the property owner.

The program is entirely optional for developers and owners of both commercial and residential property. The program provides a new financing tool that developers, business owners, and homeowners alike can utilize to achieve their renewable energy goals. 3 Alternative(s)
The City Council may decide not to authorize HERO, which would prevent local commercial and residential property owners from using this tool to aid in financing new projects and upgrades to existing commercial facilities and homes.

Fiscal Considerations
None. All costs and expenses related to the program and its administration are borne by the WRCOG and property owner.

Impact on the Community
The adoption of the HERO Program will provide a new financing tool for developers and homeowners alike at no cost to the City.

ATTACHMENT(S)
A. Resolution – HERO Program and Exhibit “A” - Amendment to Joint Powers Agreement Attachment A

Page 1 of 8 ends

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA
CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY’S

JURISDICTION IN THE CALIFORNIA HERO PROGRAM TO FINANCE

DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY AND

WATER EFFICIENCY IMPROVEMENTS AND ELECTRIC VEHICLE CHARGING

INFRASTRUCTURE AND APPROVING THE AMENDMENT

TO A CERTAIN JOINT POWERS AGREEMENT BETWEEN CITY OF SANTA MARIA

AND WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS

RELATED THERETO
WHEREAS, the Western Riverside Council of Governments (“Authority”) is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Act”) and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the “Authority JPA”); and
WHEREAS, Authority established the California HERO Program to provide for the financing of renewable energy distributed generation sources, energy and water efficiency improvements and electric vehicle charging infrastructure (the “Improvements”) pursuant to Chapter 29 of the Improvement Bond Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) within counties and cities throughout the State of California that elect to participate in such program; and WHEREAS, the City of Santa Maria (the “City”) is committed to development of renewable energy sources and energy efficiency improvements, reduction of greenhouse gases, and environmental protection; and WHEREAS, in Chapter 29, the Legislature has authorized cities and counties to assist property owners in financing the cost of installing Improvements through a voluntary contractual assessment program; and
WHEREAS, installation of such Improvements by property owners within the jurisdictional boundaries of the counties and cities that are participating in the California HERO Program would promote the purposes cited above; and WHEREAS, the City wishes to provide innovative solutions to its property owners to achieve energy and water efficiency and independence, and in doing so cooperate with Authority in order to efficiently and economically assist property owners the City in financing such Improvements; and
WHEREAS, Authority has established the California HERO Program, which is a voluntary contractual assessment program, as permitted by the Act, the Authority JPA, originally made and entered into April 1, 1991, as amended to date, and the Amendment to Joint Powers Agreement Adding the City of Santa Maria as an Associate Member of the Western Riverside Council of Governments to Permit the Provision of Property Assessed Clean Energy (PACE) Program Services within the City (the “JPA Attachment A

Page 2 of 8 ends

Amendment”), by and between Authority and the City, a copy of which is attached as Exhibit “A” hereto, to assist property owners within the incorporated area of the City in financing the cost of installing Improvements; and
WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy and collection of assessments or any required remedial action in the case of delinquencies in the payment of any assessments or the issuance, sale or administration of any bonds issued in connection with the California HERO Program.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Maria that:

SECTION 1. The City Council finds and declares that properties in the City’s incorporated area will benefit by the availability of the California HERO Program to finance the installation of Improvements.

SECTION 2. The City Council consents to inclusion in the California HERO Program of all of the properties in the incorporated area within the City and to the Improvements, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to such program; and to the assumption of jurisdiction thereover by Authority for the purposes thereof.

SECTION 3. The consent of the City Council constitutes assent to the assumption of jurisdiction by Authority for all purposes of the California HERO Program and authorizes Authority, upon satisfaction of the conditions imposed in this resolution, to take each and every step required for or suitable for financing the Improvements, including the levying, collecting and enforcement of the contractual assessments to finance the Improvements and the issuance and enforcement of bonds to represent and be secured by such contractual assessments.

SECTION 4. The City Council hereby approves the JPA Amendment and authorizes the execution thereof by appropriate City officials.

SECTION 5. City staff is authorized and directed to coordinate with Authority staff to facilitate operation of the California HERO Program within the City, and report back periodically to this City Council on the success of such program.

SECTION 6. This Resolution shall take effect immediately upon its adoption. The City Clerk is directed to send a certified copy of this resolution to the Secretary of the Authority Executive Committee.

SECTION 7. The City may repeal this Resolution at any time, upon written notice to Western Riverside Council of Governments, if it is determined that any facet of the California HERO Program was misrepresented in a manner that places the City of Santa Maria at harm legally or financially.

SECTION 8. The City Manager, or designee, is hereby authorized to execute any related documents.

Attachment A

Page 3 of 8 ends

SECTION 9. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 7th day of April 2026.

ATTEST:

Page 4 of 8 ends

EXHIBIT “A”

AMENDMENT TO THE JOINT POWERS AGREEMENT

ADDING THE CITY OF SANTA MARIA AS AN ASSOCIATE MEMBER

OF THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS

TO PERMIT THE PROVISION OF PROPERTY ASSESSED
CLEAN ENERGY (PACE) PROGRAM SERVICES WITHIN THE CITY.

This Amendment to the Joint Powers Agreement (“JPA Amendment”) is made and entered into on the 7
th day of April 2026, by the City of Santa Maria (“City”) and the Western Riverside Council of Governments (“Authority”) (collectively the “Parties”).

WHEREAS, Authority is a joint exercise of powers authority established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (Section 6500 and following) (the “Joint Exercise of Powers Act”) and the Joint Power Agreement entered into on April 1, 1991, as amended from time to time (the “Authority JPA”); and
WHEREAS, Chapter 29 of the Improvement Act of 1911, being Division 7 of the California Streets and Highways Code (“Chapter 29”) authorizes cities, counties, and cities and counties to establish voluntary contractual assessment programs, commonly referred to as a Property Assessed Clean Energy (“PACE”) program, to fund certain renewable energy sources, energy and water efficiency improvements, and electric vehicle charging infrastructure (the “Improvements”) that are permanently fixed to commercial, industrial, agricultural or other real property; and WHEREAS, Authority established a PACE program known as the “California HERO Program” pursuant to Chapter 29 as now enacted or as such legislation may be amended hereafter, which will authorize the implementation of a PACE financing program for cities and county throughout the state; and
WHEREAS, City desires to allow owners of property within its jurisdiction to participate in the California HERO Program and to allow Authority to conduct proceedings under Chapter 29 to finance Improvements to be installed on such properties; and WHEREAS, this JPA Amendment will permit City to become an Associate Member of Authority and to participate in California HERO Program for the purpose of facilitating the implementation of such program within the jurisdiction of City; and WHEREAS, pursuant to the Joint Exercise of Powers Act, the Parties are approving this JPA Agreement to allow for the provision of PACE services, including the operation of a PACE financing program, within the incorporated territory of City; and WHEREAS, the JPA Amendment sets forth the rights, obligations and duties of City and Authority with respect to the implementation of the California HERO Program within the incorporated territory of City.

Attachment A

Page 5 of 8 ends

MUTUAL UNDERSTANDINGS
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions hereinafter stated, the Parties hereto agree as follows:

A. JPA Amendment.

1. The Authority JPA. City agrees to the terms and conditions of the Authority JPA, attached.

2. Associate Membership. By adoption of this JPA Amendment, City shall become an Associate Member of Authority on the terms and conditions set forth herein and the Authority JPA and consistent with the requirements of the Joint Exercise of Powers Act. The rights and obligations of City as an Associate Member are limited solely to those terms and conditions expressly set forth in this JPA Amendment for the purposes of implementing the California HERO Program within the incorporated territory of City.

Except as expressly provided for by the this JPA Amendment, City shall not have any rights otherwise granted to Authority’s Regular Members by the Authority JPA, including but not limited to the right to vote on matters before the Executive Committee or the General Assembly, the right to amend or vote on amendments to the Authority JPA, and the right to sit on committees or boards established under the Authority JPA or by action of the Executive Committee or the General Assembly, including, without limitation, the General Assembly and the Executive Committee. City shall not be considered a member for purposes of Section 9.1 of the Authority JPA.

B. Rights of Authority. This JPA Amendment shall not be interpreted as limiting or restricting the rights of Authority under the Authority JPA. Nothing in this JPA Amendment is intended to alter or modify Authority Transportation Uniform Mitigation Fee (TUMF) Program, the PACE Program administered by Authority within the jurisdictions of its Regular Members, or any other programs administered now or in the future by Authority, all as currently structured or subsequently amended. Implementation of California HERO Program within City Jurisdiction.

1. Boundaries of the California HERO Program within City Jurisdiction. City shall determine and notify Authority of the boundaries of the incorporated territory within City’s jurisdiction within which contractual assessments may be entered into under the California HERO Program (the “Program Boundaries”), which boundaries may include the entire incorporated territory of City or a lesser portion thereof.

2. Determination of Eligible Improvements. Authority shall determine the types of distributed generation renewable energy sources, energy efficiency or water conservation improvements, electric vehicle charging infrastructure or such other improvements as may be authorized pursuant to Chapter 29 (the “Eligible Improvements”) that will be eligible to be financed under the California HERO Program.

3. Establishment of California HERO Program. Authority will undertake such proceedings pursuant to Chapter 29 as shall be legally necessary to enable Authority to make contractual financing of Eligible Improvements available to eligible property owners within the Program Boundaries.

Attachment A

Page 6 of 8 ends

4. Financing the Installation of Eligible Improvements. Authority shall develop and implement a plan for the financing of the purchase and installation of the Eligible Improvements under the California HERO Program.

5. Ongoing Administration. Authority shall be responsible for the ongoing administration of the California HERO Program, including but not limited to producing education plans to raise public awareness of the California HERO Program, soliciting, reviewing and approving applications from commercial property owners participating in the California HERO Program, establishing contracts for commercial and other property owners participating in such program, establishing and collecting assessments due under the California HERO Program, adopting and implementing any rules or regulations for the California HERO Program, and providing reports as required by Chapter 29.

City will not be responsible for the conduct of any proceedings required to be taken under Chapter 29; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of any bonds issued in connection with the California HERO Program.

6. Phased Implementation. The Parties recognize and agree that implementation of the California HERO Program as a whole can and may be phased as additional other cities and counties execute similar agreements. City entering into this JPA Amendment will obtain the benefits of and incur the obligations imposed by this JPA Amendment in its jurisdictional area, irrespective of whether cities or counties enter into similar agreements.

C. Miscellaneous Provisions.

1. Withdrawal. City or Authority may withdraw from this JPA Amendment upon six (6) months written notice to the other party; provided, however, there is no outstanding indebtedness of Authority within City, or if the provisions of the California HERO program have been misrepresented to City. The provisions of Section 6.2 of the Authority JPA shall not apply to City under this JPA Amendment.

2. Mutual Indemnification and Liability. Authority and City shall mutually defend, indemnify and hold the other party and its directors, officials, officers, employees and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses, damages or injuries of any kind, in law or equity, to property or persons, including wrongful death, to the extent arising out of the willful misconduct or negligent acts, errors or omissions of the indemnifying party or its directors, officials, officers, employees and agents in connection with the California HERO Program administered under this JPA Amendment, including without limitation the payment of expert witness fees and attorney’s fees and other related costs and expenses, but excluding payment of consequential damages. Without limiting the foregoing, Section 5.2 of the Authority JPA shall not apply to this JPA Amendment. In no event shall any of Authority’s Regular Members or their officials, officers or employees be held directly liable for any damages or liability resulting out of this JPA Amendment.

3. Environmental Review. Authority shall be the lead agency under the California Environmental Quality Act for any environmental review that may be required Attachment A

Page 7 of 8 ends

in implementing or administering the California HERO Program under this JPA Amendment.

4. Cooperative Effort. City shall cooperate with Authority by providing information and other assistance in order for Authority to meet its obligations hereunder.

City recognizes that one of its responsibilities related to the California HERO Program will include any permitting or inspection requirements as established by City.

5. Notice. Any and all communications and/or notices in connection with this JPA Amendment shall be either hand-delivered or sent by United States first class mail, postage prepaid, and addressed as follows:

Authority:

Western Riverside Council of Governments
1955 Chicago Avenue, Suite 200
Riverside, CA 92507
Att: Executive Director
City:

City of Santa Maria
110 E. Cook Street
Santa Maria, CA 93458
Attn: City Manager

6. Entire Agreement. This JPA Amendment, together with the Authority JPA, constitutes the entire agreement among the Parties pertaining to the subject matter hereof. This JPA Amendment supersedes any and all other agreements, either oral or in writing, among the Parties with respect to the subject matter hereof and contains all of the covenants and agreements among them with respect to said matters, and each Party acknowledges that no representation, inducement, promise of agreement, oral or otherwise, has been made by the other Party or anyone acting on behalf of the other Party that is not embodied herein.

7. Successors and Assigns. This JPA Amendment and each of its covenants and conditions shall be binding on and shall inure to the benefit of the Parties and their respective successors and assigns. A Party may only assign or transfer its rights and obligations under this JPA Amendment with prior written approval of the other Party, which approval shall not be unreasonably withheld.

8. Attorney’s Fees. If any action at law or equity, including any action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, each Party to the litigation shall bear its own attorney’s fees and costs.

9. Governing Law. This JPA Amendment shall be governed by and construed in accordance with the laws of the State of California, as applicable.

10. No Third Party Beneficiaries. This JPA Amendment shall not create any right or interest in the public, or any member thereof, as a third party beneficiary hereof, nor shall it authorize anyone not a Party to this JPA Amendment to maintain a suit for Attachment A

Page 8 of 8 ends

personal injuries or property damages under the provisions of this JPA Amendment. The duties, obligations, and responsibilities of the Parties to this JPA Amendment with respect to third party beneficiaries shall remain as imposed under existing state and federal law.

11. Severability. In the event one or more of the provisions contained in this JPA Amendment is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this JPA Amendment and the remaining parts of this JPA Amendment shall remain in full force and effect as though such invalid, illegal, or unenforceable portion had never been a part of this JPA Amendment.

12. Headings. The paragraph headings used in this JPA Amendment are for the convenience of the Parties and are not intended to be used as an aid to interpretation.

13. Amendment. This JPA Amendment may be modified or amended by the Parties at any time. Such modifications or amendments must be mutually agreed upon and executed in writing by both Parties. Verbal modifications or amendments to this JPA Amendment shall be of no effect.

14. Effective Date. This JPA Amendment shall become effective upon the execution thereof by the Parties hereto.

IN WITNESS WHEREOF, the Parties hereto have caused this JPA Amendment to be executed and attested by their officers thereunto duly authorized as of the date first above written.

WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
By: _______________________________ Date: ______________ Executive Committee Chair
Western Riverside Council of Government

CITY OF SANTA MARIA
By: _______________________________ Date: ______________ Alice Patino, Mayor
ATTEST:

Chief Deputy City Clerk
APPROVED AS TO FORM:

City Attorney

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Approving Las Brisas Apartments Planned Development Permit Request for a Time Extension
Description:

The City Council will consider adopting a Resolution approving a request for a two-year Time Extension (A2026-0003) to Planned Development Permit (PD2022-0011) for MBK Rental Living, Inc. to construct 103 apartment units in 23 two-story buildings, a community center, landscaping, parking and resident amenities on a 9.96-acre site in a PD/R-3 (Planned Development/High Density Residential) district.

RECOMMENDATION:

Adopt a Resolution approving Permit Amendment A2026-0003 granting a two-year time extension for Planned Development Permit PD2022-0011 located at Lots 1 and 2 of Tract 6008 (APNS 117-990-001 and 117-990-002).

BACKGROUND:

On December 7, 2022, the Planning Commission recommended the City Council approve a Planned Development Permit (PD2022-0011) for Las Brisas Apartments (formerly known as Betteravia Place 2), to allow for the construction of 103 apartment units in 23 two-story buildings, a community center, landscaping, parking and resident amenities on a vacant lot located on the southeast corner of Blosser Road and Carmen Lane (Attachment B - Vicinity Map). This recommendation was made as part of a General Plan and Rezone application requiring City Council approval for the overall Betteravia Plaza project, including the establishment of residential land use designation and zoning of the site, an addendum to a previously adopted Environmental Impact Report, and two Planned Development Permits: one for the Betteravia Place 1 project and the second for Betteravia Place 2. The City Council approved the Betteravia Plaza project, including both Planned Development Permits, on February 7, 2023. The previously approved PD2022-0011 plan set (Attachment E), and permit conditions (Attachment F) are attached for reference.
2 Per Municipal Code Section 12-35.109, approved permits become valid the 15th calendar day after the decision-making body grants the issuance of the permit, in this case February 22, 2023. Section 12-35.501 further states that the Planned Development Permit will no longer be valid if building permits have not been issued within three years of this date. While the building permits for Betteravia Place 1 were issued and project construction is now nearing completion, the applicant/developer, MBK Rental Living, Inc., has not yet obtained building permits for the Las Brisas Apartments / PD2022-0011, and the subject parcels remain vacant.

DISCUSSION:

The applicant is requesting to extend the Las Brisas Apartments Planned Development Permit expiration date of February 22, 2026, by two additional years to February 22, 2028.

Municipal Code Section 12-35.501(d)(1) authorizes the original decision-making body (in this case, the City Council) to extend the permit to allow additional time for implementation of a project, if the decision-making body finds:
“that there has been adequate due diligence to implement and complete the permit, or that there are significant economic factors that justify additional time.” In this case, the applicant cites current economic circumstances, including high inflation and interest rates, as reasoning for their extension request (Attachment C). In addition, the applicant had until recently been actively working with Planning and Building staff to submit the adequate building permit plans. Building permits have been submitted and are now approved (but not yet issued) for the fine grading, residential buildings and community center. The payment of fees is the one outstanding step for the applicant to complete before the City issues building permits. Therefore, staff is recommending that the City Council approve this request to extend the expiration date of the permit to February 22, 2028.

Alternative(s)
The City Council could determine that there has not been adequate due diligence to implement and complete the permit, or that there are no significant economic factors that justify the additional time and the Planned Development permit would expire. If this were to occur, should the applicant wish to move forward with the project in the future, they would be required to repeat the entitlement process from the beginning.

Environmental Review
The project was adequately covered in a previously adopted Addendum to the Betteravia Plaza Final Environmental Impact Report (State Clearing House Number 2015011029) pursuant to California Environmental Quality Act State Guidelines Section 15162. No additional environmental review is required for the subject time extension request.

Fiscal Considerations
A time extension of PD2022-0011 will not create any immediate fiscal impacts for the City.

Over the long term, the development of the final phase of Las Brisas will generate increased property tax revenue.
3 Impact on the Community
Granting the two-year time extension allows the Planned Development Permit to remain active and allow for the completion of 103 new housing units available to the residents of the City.

ATTACHMENT(S)
A. Resolution
B. Vicinity Map
C. Applicant’s Time Extension Request
D. Permit A2026-0003
E. Approved Plan Set (PD2022-0011)
F. Approved Permit (PD2022-0011)
Attachment A

Page 1 of 5 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,
APPROVING PERMIT AMMENDMENT A2026-0003 GRANTING A

TWO-YEAR TIME EXTENSION FOR PLANNED DEVELOPMENT
PERMIT PD2022-0011 LOCATED AT LOTS 1 AND 2 OF TRACT
6008 (APNS 117-990-001 AND 117-990-002)
WHEREAS, MBK Rental Living applied for a Planned Development Permit (PD2022-0011) on September 7, 2022, to construct the Las Brisas (formally Betteravia Place 2) project consisting of 103 apartment units, with associated site and landscape improvements on a 9.96-gross acre site; and
WHEREAS, the Planning Commission of the City of Santa Maria held a public meeting on December 7, 2022, to review the Planned Development Permit; and WHEREAS, on December 7, 2022, a 3-0-1-1 vote, the Planning Commission made its recommendation by motion that the City Council approve the proposed Planned Development permit as conditioned; and
WHEREAS, a duly noticed public hearing was held on the Planned Development Permit by the Santa Maria City Council on February 7, 2023; and WHEREAS, the Santa Maria City Council made no modification of the proposed Planned Development Permit which had been previously considered by the Planning Commission; and
WHEREAS, the City Council considered and relied on the Planning Commission's recommendations to adopt an Addendum to the 2015 Betteravia Plaza Final Environmental Impact Report for the Project, in making its decision on the proposed project; and
WHEREAS, at the February 7, 2023, public hearing, the City Council of the City of Santa Maria considered and relied on the Planning Commission's recommendations to approve the Planned Development Permit; and
WHEREAS, the City Council approved the Planned Development Permit findings in accordance with Section 12-35.203 of the Municipal Code, through City Council Resolution 2023-30 as follows:

A. That the project meets the vision, intent, and requirements of the General Plan.

The project would be consistent with the purpose of the High Density Residential (HDR) land use designation on the site, which is meant to provide an urban residential environment close to shopping facilities and existing Attachment A

Page 2 of 5 ends

activity centers, because the project would provide apartments adjacent to existing/proposed commercial development and park space.

B. That the site for the proposed use is adequate in size and topography to accommodate the use, and all yards, spaces, walls and fences, parking, loading and landscaping are adequate to property adapt such use with the land and uses in the vicinity because, the project Is designed to comply with the City of Santa Maria Municipal Code standards for the PD/R-3 zone, including but not limited to height, parking, loading, landscaping, open space, setbacks, and vehicular access. The site is adequately sized to accommodate the proposed residential use, and the construction of the multi-family residential development would adapt with the land and uses in the vicinity which includes a similar land use pattern of medium and high-density residential development.

C. That the site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use because the proposed construction of project, with traffic mitigation measures, would not lead to inadequate street and highway conditions. A Traffic and Circulation Study was prepared by Associated Transportation Engineers (ATE) for the 2015 Betteravia Plaza Final Environmental Impact Report (EIR). The City of Santa Maria General Plan Circulation Element states that a Level of Service (LOS) D or better is acceptable for roadway and intersection operations. The traffic study determined that the existing area intersections operate within acceptable LOS ranges with intersection improvements (traffic signals) at the intersections identified in Mitigation Measure T-1 of the EIR. The City's Public Works Department reviewed this study and determined that no further analysis to traffic LOS and site circulation is required because the number of cumulative trips with the project are projected to be reduced and would not change the previously analyzed LOS at the area intersections. The Mitigation Measure T1 has been Incorporated into this permit as a condition of approval, improvements to be completed prior occupancy clearance for the project.

The project is exempt from Vehicle Miles Traveled (VMT) analysis per the City of Santa Maria Environmental Procedures. Specifically, the project site is located within a Transportation Analysis Zone (TAZ) where the Countywide Average Home-Based VMT per Capita (Appendix B of Environmental Procedures) are expected to generate VMT at 85 percent or less of the baseline average rate. Any of these T AZ areas are presumed to have a less than significant VMT impact and are exempt from further review.

D. That the proposed use will have no adverse effect upon abutting property as the construction of the multi-family residential development and the establishment of the residential use would be self-sustained by providing adequate on-site parking and amenities in an area of the City that has established residential development of a similar density and scale.

Attachment A

Page 3 of 5 ends

E. That the establishment, maintenance and/or conducting of the use for which the planned development review is sought will not, under the circumstances of the particular case, be detrimental to the health, safety, morals, or welfare of persons residing or working in the neighborhood of such use and will not, under the circumstances of the particular case, be detrimental to the public welfare, injurious to property or Improvements In the neighborhood; nor shall the use be inconsistent with the character of the neighborhood or contrary to its orderly development. The project would provide adequate space for setbacks, parking and landscaping to ensure no nuisances would be created by the establishment of the project. The conditions of approval and development standards required for this project address alleviate any potentially adverse impacts that could result from the proposed use. Therefore, the project would be compatible with the adjoining land uses and would project would be compatible with the adjoining land uses and would not be more obnoxious or detrimental to the health of the public than any of the uses established at the project area, or any of the uses listed in the PD/R-3 section of the Municipal Code.

F. That the conditions stated in the decision are necessary to protect the public health, safety, and general welfare.

G. The proposed height and open space modifications are otherwise consistent with the General Plan, and Municipal Code because the modification to exceed the R-3 district 35-foot building height maximum by five-feet would allow for changes in roof planes and variation in roof lines which provides architectural interest and reduces the perceived bulk of the building, which is consistent with Objective L.U.9c to encourage creative site design in new residential developments and encourage the development of a unique identity for each neighborhood. Further the height increase allows for full screening of rooftop mechanical equipment, consistent with Municipal Code performance standards. A reduction in the open space requirement of 250-square-feet per unit to 224-square-feet per unit allows for a variety of unit sizes to be constructed at maximum density while also providing several high-quality open space areas for passive and active resident use, consistent with objective L.U.1 a.

H. The project includes superior design elements that mitigate or compensate for any potential impact of the proposed modification(s) on the surrounding area; the modification to exceed the R-3 district 35-foot maximum building height by five feet would allow for changes in roof planes and variation in roof lines which provides architectural interest and reduces the perceived bulk of the building.

A reduction in the open space requirement of 250-square-feet per unit to 224- square- feet per unit allows for a variety of unit sizes to be constructed at maximum density while also providing several high-quality shared open space areas for passive and active resident use, including playgrounds, sports courts, plazas, and seating with pedestrian amenities such as trellises, lighting, shade trees, and decorative pedestrian crossings. Each unit is provided with its own private balcony.

Attachment A

Page 4 of 5 ends

I. The proposed modification(s) are essential to the design of the project; The modification to exceed the 35-foot maximum building height allows the project to adequately screen rooftop equipment and provide roof line variations to break up the building massing and provide architectural interest. The reduction in the open space requirement of 250-square-feet per unit to 224-square-feet per unit allows for a variety of unit sizes to be constructed at the density allowed by the General Plan.

J. The proposed modification(s) have been minimized to the maximum extent possible consistent with Subsections (a) through (c) of Section 12-35.203 of the Municipal Code. The project is consistent with all other applicable development standards in the Municipal Code.

K. That the environmental impacts of the project are adequately reviewed in the Addendum to the Betteravia Plaza Final Environmental Impact Report (SCH# 2015011029) and there is no substantial evidence in the record that the project, as mitigated, may have a significant effect on the environment. No further environmental review is required.

WHEREAS, the applicant, Ron Mertzel, representing MBK Rental Living, Inc., has applied for a Planned Development Permit Amendment for a Time Extension for the approved Planned Development Permit (A2026-0003); and
WHEREAS, the Planned Development Permit Amendment Time Extension request was considered by the Santa Maria City Council on April 7, 2026; and WHEREAS, the City Council finds that competent evidence provided by the applicant and included in the project record substantiates that the applicant has demonstrated adequate due diligence to implement and complete the permit and that there are significant economic factors that justify additional time, per Santa Maria Municipal Code Section 12-35.501(d)(1). The applicant has cited current economic circumstances, including high inflation and interest rates as a reasoning for their request. In addition, the applicant did submit building permit applications, and the City has approved the fine grading, residential buildings and community center plans, however the applicant did not pay the associated fees, so no building permits were issued. The applicant is also working with the Public Works Department to complete off-site public improvements such as a traffic signal at Blosser and Carmen Lane and a bus turnout and shelter on Blosser Road. This developer has also constructed the 340-unit Betteravia Place 1 apartment community that is now near completion, which will allow the developer to shift the focus of their efforts to this project.

This Amendment to Planned Development Permit PD2022-0011 extends the validity for the permit by two years to February 22, 2028.

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

Attachment A

Page 5 of 5 ends

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

SECTION 2. The City Council hereby reaffirms the Planned Development Permit findings made for PD2022-0011 through Council Resolution 2023-30 and as stated above.

SECTION 3. The City Council hereby approves the Planned Development Permit Amendment (A2026-0003) to extend the Planned Development Permit expiration date of February 22, 2026, by two additional years to February 22, 2028, subject to the Planned Development Permit Amendment Conditions, which are each attached to the April 7, 2026, City Council Agenda Report, incorporated by reference.

SECTION 4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 7
th day of April 2026.

ATTEST:

VICINITY MAP

ATTACHMENT B

ATTACHMENT B
December 19, 2025
Carol Ziesenhenne
Senior Planner
City of Santa Maria
110 S Pine St, Suite 101
Santa Maria CA 93458
SUBJECT: Entitlement Extension Request – PD2022-0011 – Betteravia Place 2, Lots 1 & 2 of Betteravia Plaza, Tract 6008. SWC Blosser Road & Carmen Lane
Dear Carol,
The subject Planned Development Permit was originally approved by the City of Santa Maria City Council at the regular meeting held on February 7th, 2023. According to the PDP approval, the entitlement is set to expire three (3) years after the original approval. The approval also provides for the potential of securing two (2) extensions, each for an additional two (2) year period. This PDP is phase 2 of our larger development, which is under PDP (PD2021-0006). Based on the present timing of our development, we are hereby requesting a 2 year extension of the current entitlement to February 7th, 2028.

The reason we are requesting the extension is, per our initial land acquisition strategy at the time of purchase, the leasing market was temperate due to a sluggish and uncertain economy suffering from high inflation and rising interest rates. Thus, we desired to construct the 340-unit apartment community first to gauge the leasing activity and depth of the market and then follow up with the larger 103 townhome units once we had gained traction and established a good leasing velocity with the apartments. We are making great progress with the apartments as we are excited to be grand opening our apartment community in March 2026. This is perfect timing to commence leasing activity and will give us a full leasing season to engage and evaluate the market which will then enable us to divert our attention toward constructing the townhome community.

We appreciate your consideration of this request.

Sincerely,
Santa Maria II Multifamily LLC
Ron Mertzel
VP of Planning & Development

ATTACHMENT C

ATTACHMENT D

CITY OF SANTA MARIA

PLANNED DEVELOPMENT PERMIT AMENDMENT
PLANNING DIVISION  110 SOUTH PINE STREET ROOM 101  SANTA MARIA, CA 93458  805.925.0951 X 2244 PERMIT NO. A2026-0003_____________________________________ APPROVAL DATE April 7, 2026_____________________________________________ _ PROJECT NAME Las Brisas Apartments Time Extension
APPLICANT/OWNER Ron Mertzel, Santa Maria II Multifamily LLC __ __ ADDRESS/LOCATION Southeast corner of Blosser Road and Carmen Lane ________ _ DESCRIPTION Review of a Permit Amendment (A2026-0003) to Planned Development Permit (PD2022-0011) to allow a two-year time extension for MBK Rental Living, Inc. to construct 103
apartment units in 23 two-story buildings, a community center, landscaping, parking and resident amenities on a 9.96-acre site in a PD/R-3 (Planned Development/High Density Residential) district.

FINDINGS
The City Council hereby approves the following project in accordance with the application submitted and hereby makes the required findings in accordance with Sections 12-35.501 and 12-35.203 of the Santa Maria Municipal Code, including the following:

A. That the City Council finds that competent evidence provided by the applicant and included in the project record substantiates that the applicant has demonstrated adequate due diligence to implement and complete the permit and that there are significant economic factors that justify additional time, per Santa Maria Municipal Code Section 12-35.501(d)(1). The applicant has cited economic circumstances, including high inflation and interest rates as a reasoning for their request. In addition, the applicant did submit building permit applications, and the City has approved the fine grading, residential buildings and community center plans, however the applicant did not pay the associated fees, so no permits were issued. The applicant is also working with the Public Works Department to complete off-site public improvements such as a traffic signal at Blosser and Carmen Lane and a bus turnout and shelter on Blosser Road. This developer has also constructed the 340-unit Betteravia Place 1 apartment community that is now near completion, which will allow the developer to shift the focus of their efforts to this project. This Amendment to Planned Development Permit PD2022-0011 extends the validity for the permit by two years to February 22, 2028.

A2026-0003 APRIL 7, 2026

LAS BRISAS TIME EXTENSION PLANNED DEVELOPMENT PERMIT AMENDMENT - 2 -
B. That the City Council made the necessary Planned Development Permit Findings in accordance with Sections 12-35.105 and 12-35.203 on February 7, 2023, and approved PD2022-0011 (the project) finding the following:
i. That the project meets the vision, intent, and requirements of the General Plan. The project would be consistent with the purpose of the High Density Residential (HDR) land use designation on the site, which is meant to provide an urban residential environment close to shopping facilities and existing activity centers, because the project would provide apartments adjacent to existing/proposed commercial development and park space. ii. That the site for the proposed use is adequate in size and topography to accommodate the use, and all yards, spaces, walls and fences, parking, loading and landscaping are adequate to property adapt such use with the land and uses in the vicinity because, the project Is designed to comply with the City of Santa Maria Municipal Code standards for the PD/R-3 zone, including but not limited to height, parking, loading, landscaping, open space, setbacks, and vehicular access. The site is adequately sized to accommodate the proposed residential use, and the construction of the multi-family residential development would adapt with the land and uses in the vicinity which includes a similar land use pattern of medium and high-density residential development.
iii. That the site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use because the proposed construction of project, with traffic mitigation measures, would not lead to inadequate street and highway conditions. A Traffic and Circulation Study was prepared by Associated Transportation Engineers (ATE) for the 2015 Betteravia Plaza Final Environmental Impact Report (EIR). The City of Santa Maria General Plan Circulation Element states that a Level of Service (LOS) D or better is acceptable for roadway and intersection operations. The traffic study determined that the existing area intersections operate within acceptable LOS ranges with intersection improvements (traffic signals) at the intersections identified in Mitigation Measure T-1 of the EIR. The City's Public Works Department reviewed this study and determined that no further analysis to traffic LOS and site circulation is required because the number of cumulative trips with the project are projected to be reduced and would not change the previously analyzed LOS at the area intersections. The Mitigation Measure T1 has been Incorporated into this permit as a condition of approval, improvements to be completed prior occupancy clearance for the project.

LAS BRISAS TIME EXTENSION PLANNED DEVELOPMENT PERMIT AMENDMENT - 3 -
Procedures) are expected to generate VMT at 85 percent or less of the baseline average rate. Any of these T AZ areas are presumed to have a less than significant VMT impact and are exempt from further review. iv. That the proposed use will have no adverse effect upon abutting property as the construction of the multi-family residential development and the establishment of the residential use would be self-sustained by providing adequate on-site parking and amenities in an area of the City that has established residential development of a similar density and scale. v. That the establishment, maintenance and/or conducting of the use for which the planned development review is sought will not, under the circumstances of the particular case, be detrimental to the health, safety, morals, or welfare of persons residing or working in the neighborhood of such use and will not, under the circumstances of the particular case, be detrimental to the public welfare, injurious to property or Improvements In the neighborhood; nor shall the use be inconsistent with the character of the neighborhood or contrary to its orderly development. The project would provide adequate space for setbacks, parking and landscaping to ensure no nuisances would be created by the establishment of the project. The conditions of approval and development standards required for this project address alleviate any potentially adverse impacts that could result from the proposed use.

Therefore, the project would be compatible with the adjoining land uses and would project would be compatible with the adjoining land uses and would not be more obnoxious or detrimental to the health of the public than any of the uses established at the project area, or any of the uses listed in the PD/R-3 section of the Municipal Code.
vi. That the conditions stated in the decision are necessary to protect the public health, safety, and general welfare.
vii. The proposed height and open space modifications are otherwise consistent with the General Plan, and Municipal Code because the modification to exceed the R-3 district 35-foot building height maximum by five-feet would allow for changes in roof planes and variation in roof lines which provides architectural interest and reduces the perceived bulk of the building, which is consistent with Objective L.U.9c to encourage creative site design in new residential developments and encourage the development of a unique identity for each neighborhood. Further the height increase allows for full screening of rooftop mechanical equipment, consistent with Municipal Code performance standards. A reduction in the open space requirement of 250-square-feet per unit to 224-square-feet per unit allows for a variety of unit sizes to be constructed at maximum density while also providing several high-quality open space areas for passive and active resident use, consistent with objective L.U.1 a.

A2026-0003 APRIL 7, 2026

LAS BRISAS TIME EXTENSION PLANNED DEVELOPMENT PERMIT AMENDMENT - 4 -
viii. The project includes superior design elements that mitigate or compensate for any potential impact of the proposed modification(s) on the surrounding area; the modification to exceed the R-3 district 35-foot maximum building height by 5-feet would allow for changes in roof planes and variation in roof lines which provides architectural interest and reduces the perceived bulk of the building. A reduction in the open space requirement of 250-square-feet per unit to 224-square- feet per unit allows for a variety of unit sizes to be constructed at maximum density while also providing several high-quality shared open space areas for passive and active resident use, including playgrounds, sports courts, plazas, and seating with pedestrian amenities such as trellises, lighting, shade trees, and decorative pedestrian crossings.

Each unit is provided with its own private balcony.
ix. The proposed modification(s) are essential to the design of the project; The modification to exceed the 35-foot maximum building height allows the project to adequately screen rooftop equipment and provide roof line variations to break up the building massing and provide architectural interest. The reduction in the open space requirement of 250 square feet per unit to 224- square-feet per unit allows for a variety of unit sizes to be constructed at the density allowed by the General Plan.
x. The proposed modification(s) have been minimized to the maximum extent possible consistent with Subsections (a) through (c) of Section 12-35.203 of the Municipal Code. The project is consistent with all other applicable development standards in the Municipal Code.
xi. That the environmental impacts of the project are adequately reviewed in the Addendum to the Betteravia Plaza Final Environmental Impact Report (SCH# 2015011029) and there is no substantial evidence in the record that the project, as mitigated, may have a significant effect on the environment. No further environmental review is required.

C. That the City Council hereby reaffirms the above cited findings of City Council Resolution 2023-30.

D. That the conditions stated in this Permit Amendment (A2026-0003) modify and are in addition to the conditions of Planned Development Permit (PD2022-0011), and are necessary to protect the public health, safety and general welfare, so that the proposed use will have no adverse effect upon abutting property.

E. The project was adequately covered in a previously adopted Addendum to the Betteravia Plaza Final Environmental Impact Report (State Clearing House Number 2015011029) pursuant to California Environmental Quality Act State Guidelines Section 15162. No additional environmental review is required for the subject time extension request.

A2026-0003 APRIL 7, 2026

LAS BRISAS TIME EXTENSION PLANNED DEVELOPMENT PERMIT AMENDMENT - 5 -

CONDITIONS OF APPROVAL
The project is approved subject to the following Conditions of Approval:

Community Development Department

1. Project Description: The permittee shall comply with the project description, plan set entitled Betteravia Place 2 consisting of 19 pages dated November 10, 2022, September 2, 2022, and August 10, 2022, and Conditions of Approval of this permit. Any changes from the project description, Plan Set, or conditions may require a permit amendment. Contact the Planning Division prior to changing anything described on the Plan Set or in the project description.

2. Previous Permits. All conditions from PD2022-0011 remain in effect and are included by reference. In the event of conflict between PD2022-0011 and the special conditions of this amendment, the special conditions from this amendment shall be enforced.

3. Permit Expiration. Based on the City Council extension, this Permit shall become null and void if the ministerial permits required under this permit have not been issued by February 22, 2028.

4. Agency Requirements. The applicant shall ascertain and comply with all Federal, State, County and City requirements as are applicable to this project.

5. Indemnification: The applicant shall agree to indemnify, defend (with counsel reasonably approved by the City), and hold harmless the City of Santa Maria and its officers, officials, employees, and agents from and against any and all claims, demands, actions, proceedings, lawsuits, losses, damages, judgments and/or liabilities by third parties arising out of, related to, or in connection with the project application or to attack, set aside, void, or annul, in whole or in part, an approval of the project application by the City and any related environmental approvals, development approvals or project conditions. The Applicant shall reimburse the City, its agents, officers, officials, or employees, for any court costs and attorney’s fees that the City, its agents, officers, officials, or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action but such participation shall not relieve Applicant of his/her obligations under this provision.

A2026-0003 APRIL 7, 2026

LAS BRISAS TIME EXTENSION PLANNED DEVELOPMENT PERMIT AMENDMENT - 6 -
NOTES:

In accordance with Section 12-35.109 of the Municipal Code, this permit is not valid until the 15th calendar day following the issuance of the permit, providing no appeal is filed; or if an appeal is filed, this permit is not valid until the effective date of the final action on the appeal.

In accordance with Section 12-35.504 of the Municipal Code, the City may modify conditions of approval of the permit, or may revoke the permit for non-compliance with any of the conditions of approval, or if any operations under the approved permit result in detriment to the public health, safety or welfare.

This permit will not be valid until the applicant and property owner have submitted signed acknowledgment of their consent to the conditions, in accordance with Section 12-35.109 of the Santa Maria Municipal Code, to the Planning Division of the Community Development Department.

In accordance with Section 12-35.501 of the Municipal Code, this permit shall become null and void if the permit is not established within three years of the permit’s effective date or after establishment the use is discontinued or abandoned for a period of six months. However, the approval body may consider extensions of time for additional periods of up to two (2) years. A written request justifying the need and the appropriate filing fee filed with the Community Development Department shall be submitted prior to the expiration date.

Failure to comply with any of the conditions stated above may be cause for revocation or modification of this permit, in addition to any other penalties provided by law. All conditions of approval are to be completed prior to occupancy unless otherwise stated, and are to be maintained in perpetuity.

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CITY OF SANT A MARIA

PLANNED DEVELOPMENT PERMIT
PLANNING DIVISION O 110 SOUTH PINE STREET ROOM 101 0 SANTA MARIA. CA 93458 0 805.925.0951 X 2244 PERMIT NO.

APPROVAL DATE

PROJECT NAME
PD2022- 0011
February 71 2023
Betteravia Place 2
APPLICANT/OWNER MBK Rental Living. Inc
ADDRESS/LOCATION Southeast corner of Blosser Road and Carmen Lane

DESCRIPTION

FINDINGS
Review of a Planned Development Permit (PD2022-0011) for MBK Rental Living, Inc. to construct 103 apartment units in 23 two-story buildings. a community center, landscaping, parking and resident amenities on a 9.96-acre site in a PD/R-3 (Planned Development/High Density Residential) district.

The City Council hereby approves the following project in accordance with the application submitted and hereby makes the required findings in accordance with Section 12-35.203 of the Municipal Code, including the following:

A. That the project meets the vision, intent, and requirements of the General Plan.

The project would be consistent with the purpose of the High Density Residential (HOR) land use designation on the site, which is meant to provide an urban residential environment close to shopping facilities and existing activity centers, because the project would provide apartments adjacent to existing/proposed commercial development and park space.

8. That the site for the proposed use is adequate in size and topography to accommodate the use, and all yards, spaces, walls and fences, parking, loading and landscaping are adequate to properly adapt such use with the land and uses in the vicinity because, the project is designed to comply with the City of Santa Maria Municipal Code standards for the PD/R-3 zone, including but not limited to height, parking, loading, landscaping, open space, setbacks, and vehicular access. The site is adequately sized to accommodate the proposed residential use, and the construction of the multi-family residential development would adapt with the land and uses in the vicinity which includes a similar land use pattern of medium and high-density residential development.

C. That the site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the

ATTACHMENT F

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Rebecca Campbell, Director of Finance
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Approving an Updated General Fund Reserve Policy and Section 115 Trust
Description:

The City Council will consider adopting a Resolution approving a new General Fund Reserve Policy and will consider establishing a Section 115 Trust and funding those accounts as outlined in the Fiscal Considerations section to this report.

RECOMMENDATION:

1. Adopt a Resolution approving an updated general fund reserve policy and Section 115 Trust; and

2. Authorize the Finance Director to take steps to establish the Section 115 Trust for the City’s other post-employment and unfunded pension long-term debt; and

3. Authorize the Finance Director to align funding the reserves and the Section 115 trust as outlined in the Fiscal Considerations section of this report.

BACKGROUND:

The City’s current Reserve policy endeavors to maintain a minimum unassigned fund balance of at least 25 percent of operating appropriations to insulate the General Fund programs and current service levels from large and unanticipated one-time expenditure requirements, a revenue reduction due to a change in State or Federal legislation, and other unforeseen circumstances.

In Fiscal Year (FY) 2010-11, the City adopted a General Fund Prudent Reserve (known as the “Economic Stabilization Reserve”) under Governmental Accounting Standards Board (GASB) Statement Number 54. The prudent reserve amount is updated annually calculated based on 25 percent of operating appropriations. Appropriations from the reserve can only be made by formal City Council action and are limited to emergencies such as:
• An unplanned, major event such as a catastrophic disaster requiring expenditures over five percent of the adopted General Fund Budget. • Budgeted revenue took over by another entity.
2 • A drop in projected/actual revenue of more than five percent of the adopted General Fund revenue budget.

The policy outlines that should the prudent reserve commitment be used, and its level falls below the minimum amount as described herein, the goal is to replenish the fund within two fiscal years.

The Local Economic Augmentation Fund (LEAF) reserve fund was established in FY 2000-01 to be used as the primary financing mechanism to address any potential revenue shortfalls during times of economic downturns or severe State action, so as not to significantly impact the operating budget and service levels of the General Fund. The City Council set aside General Fund proceeds into this account. The intent of this fund was to be used as a “gap financing” mechanism during downturns in the local economy. Per policy, the City will strive to maintain 5 percent of General Fund and Measure U fund annual appropriations in the LEAF fund balance.

The City also has maintained reserves for its Other Post-Employment Benefits (OPEB) long-term debt and for its Pension long-term debt.

The City of Santa Maria (herein referred to as the “City”) should maintain a prudent level of financial resources to protect against reducing service levels or incurring debt due to revenue shortfalls or unpredicated one-time expenditures. This policy establishes how and when the City builds up stabilization funds and identifies the purposes for which they may be used. The Government Finance Officers Association (GFOA) provides guidance and recommendations for the development of these funds. The City’s current policies on reserves have been reviewed and policy modifications are recommended in accordance with GFOA guidance, credit agency recommendations, and best practices.

DISCUSSION:

The maintenance of a General Fund Reserve is a sound business practice to protect the fiscal solvency of the City. A prudent General Fund Reserve level is a critical measure of a government’s ability to manage risk. Risk comes in many forms, often unforeseen – a reserve fund is a key tool in meeting the financial challenges of such unforeseen occurrences.

The City has current policies on establishing and maintaining Reserve funds, and support for Reserves are a best practice recommendation from the GFOA and various credit rating agencies. Reserves are a key factor in municipal bond credit ratings because they provide liquidity, fiscal flexibility, and a buffer against economic volatility.

The GFOA recommends, at a minimum, that general-purposes governments, regardless of size, maintain unrestricted fund balance in their General Fund of no less than two months (or 16.7 percent) of general fund operating expenditures. Credit agencies look at strong reserves that are generally above 20 percent to 30 percent of appropriations. A stable, reasonable level of reserved and unreserved fund balance denotes financial stability and strong fiscal management, both important factors considered by rating 3 agencies in evaluating the credit worthiness of the City. The General Fund Reserve Policy and General Fund Appropriation for Contingencies establishes guidelines to ensure the City maintains an unrestricted fund balance in line with GFOA recommendations.

A General Fund Reserve Policy is important in order to ensure that the City is effectively able to:
 Respond strategically and responsibly to the challenges of a changing fiscal environment;
 Mitigate operational impacts during difficult economic times;  Provide flexibility to the City Council for thoughtful reaction to State fiscal or legislative actions that reduce City revenues or increase City costs;  Maintain adequate cash balances;
 Manage unanticipated costs occurring on a one-time basis, such as natural disasters; and
 Demonstrate fiscal soundness and continued creditworthiness to bond rating agencies and the financial community.

In reviewing GFOA guidance, credit agency recommendations, and best practices for local governmental organizations the following reserves are recommended:
 General Fund Reserve (GFOA Core Operating Reserve) – It is the goal of the City Council to build a General Fund Reserve of 16.7 percent of the prior year’s budgeted General Fund operating expenditures. The purpose is to maintain liquidity and cover normal revenue fluctuations and unexpected expenditures.  Local Economic Augmentation Fund – When adopting the annual budget for the General Fund, the City Council to put aside 10 percent to 15 percent of General Fund expenditures to buffer against economic downturns, recessions, or major volatility.
 Emergency / Catastrophic Reserve – When adopting the annual budget for the General Fund, the City Council shall put aside 5 percent to 10 percent of General Fund expenditures to respond to disasters or major unforeseen events.  Appropriation for Contingencies – An amount up to five (5.0) percent of the General Fund operating expenditures and should not be less than one (1.0) percent of the approved General Fund operating expenditures in any given year. An amount appropriated for unanticipated expenditure requirements that are adopted as part of the Budget with a majority vote of the City Council and can be used during the course of a fiscal year transferring the appropriation to elsewhere in the budget. 4 The Appropriation for Contingencies expires June 30th of each fiscal year to be reestablished the following year.

Fund balances represent the net assets of each fund. Net assets generally represent a fund’s assets (cash, receivables, etc.) less liabilities. Portions of a fund’s balance may be non-spendable, restricted, assigned or committed for future expenditure as a result of City policy. In the event that there is excess Fund Balance Available – The amount, if any, of actual General Fund balance that is available, after the close of fiscal year accounting, exceeding the estimated General Fund Balance Available used in the Budget. This difference, if any, is considered when finalizing the annual Adopted Budget and shall be prioritized as follows:

1. The first priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to increase the General Fund Reserve to ensure it is maintained within the recommended 16.7 percent of the prior year’s General Fund and Measure U budgeted operating expenditures.

2. The second priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to increase the Local Economic Augmentation Fund (Stabilization Reserve) to put aside 10 percent to 15 percent.

3. The third priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to increase the Emergency/Catastrophic Reserve to put aside 5 percent to 10 percent.

4. The fourth priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to dedicate excess fund balance for known and quantified unfunded liabilities or one-time unmet needs, including but not limited to the following:
a. Employee pension plan contributions and pension obligation bond debt service
b. Other post-employment benefits (retiree health)
c. Unmet building or maintenance needs
d. Accrued employee leave
e. Litigation settlements
Section 115 Trust
The GFOA supports Section 115 trusts because they help governments responsibly manage long-term liabilities, especially OPEB and pension costs.

In 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions. GASB 68 requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) to recognize a Net Pension Liability on their balance sheet, which is the difference between the City’s total pension liability (actuarial accrued liability) and 5 actual plan assets. GASB 68 (which replaces the requirements of GASB 27) became effective for fiscal years starting after June 15, 2014. The City’s Net Pension Liability is $195.7 million as of June 30, 2024. The City set has set aside $6.2 million in reserve, established in FY 2017-18, for Unfunded Pension liability costs. Currently the reserve sits at $15.8 million.

In 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. GASB 75 requires the City to report costs and obligations for post-employment healthcare and other post-employment benefits (called “OPEBs”) much like the current accounting requirement to report pension obligations. Like GASB 68, the City must also report its net OPEB liability (difference between the total OPEB liability and assets accumulated in an irrevocable trust) on its Financial Statements. GASB 75 (which replaces the requirements of GASB 45) will become effective for fiscal years beginning after June 15, 2017. The City’s Net OPEB liability is $19.1 million as of June 30, 2022. The City set has set aside a $6.2 million in reserve, established in FY 2010-11, for OPEB liability costs.

To help public agencies address and manage their GASB 68 and 75 liabilities, programs have been established as a multiple employer trust. To be able to properly offset liabilities on the City’s financial statements, funds must be set aside in an exclusive benefit, irrevocable trust that cannot be accessed by creditors. The trust permits the City, under federal and state law, to invest in a more diversified array of investments to maximize investment returns long term and reduce the City’s liabilities.

Expected benefits of a Section 115 Trust Program to the City include:
 Contributions placed in an exclusive benefit trust can offset unfunded liabilities, which will lower the City’s Net OPEB Liability and address its Net Pension Liability.  Investment flexibility with Section 115 Trust compared to restrictions on general fund investments.
 Increased risk diversification of plan assets through different asset management  Oversight and control of fund management selection, monitoring of performance and ability to replace fund management based on performance criteria.  Increased flexibility on use of trust assets (i.e., trust assets can be accessed at any time if the assets are used to fund the City’s pension and OPEB obligations and defray reasonable expenses associated therewith)
 Potential for positive rating agency and investor consideration.

Staff will return to City Council as a next step with a resolution for the Section 115 Trust.

Alternative(s)
None presented at this time.
6 Fiscal Considerations
In order to fund the General Reserve, LEAF, Emergency Catastrophic Reserve, and Contingencies, and the Section 115 trust for pension liability, funding will be transferred from the existing Pension Reserve as shown in Table 1.

Table 1: Transfers Out from Pension Reserve
Table 2 represents the projected status of the City’s General Fund reserves at June 30, 2026. Recommended changes are reflected in the New Policy column with this policy update. Please note that the “General Reserve” was formally known as the Economic Stabilization Reserve and will be retitled.

Table 2: General Fund Reserves – Projected Year End
Existing June 30, 2026 New Policy
General Reserve
(Core Operating Reserve) $ 19,800,000 $ 24,650,000
Local Economic Augmentation
Fund (Emergency Reserve) $ 11,494,306 $ 15,894,306
Emergency/Catastrophic
Reserve (Disaster Reserve)
- $ 1,000,000
Contingencies* - $ 2,519,324
OPEB $ 6,200,000 -
PENSION $ 15,769,324 -
Total GF Reserves $ 53,263,630 $ 44,063,630
Staff is recommending that $6,200,000 from the OPEB reserve and $3,000,000 from the Pension Reserve be moved from the investment pool to a Section 115 irrevocable trust account. Staff will return to City Council for next steps on that establishment. Therefore, there will be an estimated total of $53,263,630 in funding set aside in reserves and in the Section 115 trust.
7 Impact on the Community
Maintaining a prudent financial reserve has several direct and indirect impacts on a community. From a public finance perspective, reserves enhance financial stability, service continuity, and long-term affordability of government services. For the community, prudent reserves result in: stable public services, lower infrastructure financing costs, better emergency response capability, reduced likelihood of sudden tax increases or service cuts, and greater financial resilience during economic downturns. A prudent reserve functions as the community’s financial safety net, protecting both services and taxpayers during periods of uncertainty.

Prefunding pension and OPEB obligations through a Section 115 trust benefits both the community and employees by ensuring these long-term commitments are funded in a disciplined, transparent, and sustainable way. For the community, it helps stabilize budgets, reduce long-term costs, and protect service levels by avoiding sharp increases in future contributions. For employees, it provides greater security that promised retirement benefits will be paid, backed by dedicated assets that are professionally managed and legally restricted for that purpose.

ATTACHMENT(S)
A. Resolution – General Fund Reserves Policy
B. General Fund Reserves Policy
Attachment A

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING AN UPDATED GENERAL FUND RESERVE
POLICY AND SECTION 115 TRUST
WHEREAS, the City has current policies on establishing and maintaining Reserve funds, and support for Reserves are a best practices recommendation from the Government Finance Officers Association (GFOA) and various credit rating agencies; and WHEREAS, the City’s current policies on reserves have been reviewed and policy modifications are recommended in accordance with GFOA guidance, credit agency recommendations, and best practices; and
WHEREAS, the GFOA supports Section 115 irrevocable trusts because they help governments responsibly manage long-term liabilities for other post-employment benefit and pension costs.

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

SECTION 1. A new General Fund reserve policy is approved and authorizes:
a. The “Economic Stabilization” Reserve shall be retitled to the “General Reserve” with a savings target of 16.7 percent of the prior fiscal year’s budgeted General Fund and Measure U Fund operating expenditures; and
b. Maintaining the Local Economic Augmentation Fund reserve with the target of 10 percent to 15 percent of the prior fiscal year’s budgeted General Fund and Measure U Fund operating expenditures; and
c. Establishing an Emergency/Catastrophic Reserve with the target of 5 percent to 10 percent of the prior fiscal year’s budgeted General Fund operating expenditures; and
d. Establishing a General Fund Appropriation for Contingencies with the target of 5 percent of the fiscal year’s budgeted General Fund operating expenditures.

Appropriations for Contingencies should not be less than 1 percent of the approved General Fund operating expenditures in any given year; and e. The Director of Finance is authorized to adjust reserves in the City financial system in accordance with the policy and year-end financial actual results as outlined; and
SECTION 2. The Director of Finance is authorized to take the necessary steps to establish a Section 115 Irrevocable Trust with the intent to prefund the City’s long-term debt for other post-employment benefits and unfunded pension liability costs.

Attachment A

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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.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 7th day of April 2026.

ATTEST:

CITY OF SANTA MARIA

GENERAL FUND RESERVES POLICY
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PURPOSE
Establish a General Fund Reserve Policy.

POLICY SCOPE
This Policy sets forth the parameters and funding methods the City may utilize to establish and maintain an adequate General Fund Reserve and Appropriation for Contingencies.

BACKGROUND
The City of Santa Maria (herein referred to as the “City”) should maintain a prudent level of financial resources to protect against reducing service levels or incurring debt due to revenue shortfalls or unpredicated one-time expenditures. This policy establishes how and when the City builds up stabilization funds, and identifies the purposes for which they may be used. The Government Finance Officers Association (GFOA) provides guidance and recommendations for the development of these funds.

The City has current policies on establishing and maintain Reserve funds, and additional support for Reserves are a best practice recommendation from the GFOA and various credit rating agencies.

The GFOA recommends, at a minimum, that general-purposes governments, regardless of size, maintain unrestricted fund balance in their General Fund of no less than two months (or 16.7%) of general fund operating expenditures. A stable, reasonable level of reserved and unreserved fund balance denotes financial stability and strong fiscal management, both important factors considered by rating agencies in evaluating the credit worthiness of the City. The General Fund Reserve Policy and General Fund Appropriation for Contingencies establishes guidelines to ensure the City maintains an unrestricted fund balance in line with GFOA recommendations.

ATTACHMENT B

CITY OF SANTA MARIA

GENERAL FUND RESERVES POLICY
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A General Fund Reserve Policy is important in order to ensure that the City is effectively able to:

A. Respond strategically and responsibly to the challenges of a changing fiscal environment;
B. Mitigate operational impacts during difficult economic times; C. Provide flexibility to the City Council for thoughtful reaction to State fiscal or legislative actions that reduce City revenues or increase City costs; D. Maintain adequate cash balances;
E. Manage unanticipated costs occurring on a one-time basis, such as natural disasters; and
F. Demonstrate fiscal soundness and continued creditworthiness to bond rating agencies and the financial community.

DEFINITIONS
Appropriation for Contingencies – An amount appropriated for unanticipated expenditure requirements. Appropriation for Contingencies is adopted as part of the Budget with a majority vote of the City Council and can be used during the course of a fiscal year transferring the appropriation to elsewhere in the budget. The Appropriation for Contingencies expires June 30th of each fiscal year to be reestablished the following year.

Emergency / Catastrophic Reserve – The portion of the General Fund balance assigned by the City Council as the Disaster Reserve. This funding is set aside to respond to disasters or major unforeseen events.

Excess Fund Balance Available – The amount, if any, of actual General Fund balance that is available, after the close of fiscal year accounting, exceeding the estimated General Fund Balance Available used in the Budget. This difference, if any, is considered when finalizing the annual Adopted Budget.

Fund Balances – Fund balances represent the net assets of each fund. Net assets generally represent a fund’s assets (cash, receivables, etc.) less its liabilities. Portions of a fund’s balance may be non-spendable, restricted, assigned or committed for future expenditure as a result of City policy, terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions, which the City cannot unilaterally alter.

Fund Balance Available – The amount of General Fund balance that is available for financing expenditures and other funding requirements after deducting non-spendable, restricted, committed and assigned fund balance. Also referred to as the unobligated or unassigned fund balance.

General Fund – The main operating fund providing general City-wide services.

General Fund Reserve (Operating Reserve) – The portion of the General Fund balance assigned by the City Council as the General Fund Reserve. It is not available for

CITY OF SANTA MARIA

GENERAL FUND RESERVES POLICY
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appropriation during the fiscal year except in cases of a legally declared emergency, as the funds are held for future years in anticipation of limited duration budget shortfalls and to ensure sufficient working capital for cash flow. The General Fund Reserve is not a budgetary appropriation and so does not expire at year end. It can be added to or reduced with each year’s budget.

Local Economic Augmentation Fund (Emergency Reserve) – The portion of the General Fund balance assigned by the City Council as the Budget Stabilization Reserve. Stabilization funds are called by many names, including rainy day funds, contingency funds, and are there to buffer against economic downturns, recessions, or major volatility.

Measure U Fund: A locally approved transactions and use tax (sales tax) fund that provides discretionary revenue to support the City of Santa Maria’s general municipal services, including public safety, infrastructure, and community programs. The fund is used to maintain service levels, address community priorities, and enhance long-term fiscal stability.

Unrestricted Fund Balance – The portion of the General Fund balance made up of the committed, assigned and available (unassigned) fund balance. The unrestricted fund balance is not restricted by law for a specific purpose.

POLICY
A. General Fund Reserve (GFOA Core Operating Reserve) – It is the goal of the City Council to build a General Fund Reserve of 16.7 percent of the prior year’s budgeted General Fund operating expenditures. The purpose is to maintain liquidity and cover normal revenue fluctuations and unexpected expenditures.

B. Local Economic Augmentation Fund – When adopting the annual budget for the General Fund, the City Council to put aside 10% to 15% of General Fund expenditures to buffer against economic downturns, recessions, or major volatility.

C. Emergency / Catastrophic Reserve – When adopting the annual budget for the General Fund, the City Council shall put aside 5% to 10% of General Fund expenditures to respond to disasters or major unforeseen events.

D. Appropriation for Contingencies – An amount up to five (5.0) percent of the General Fund operating expenditures and should not be less than one (1.0) percent of the approved General Fund operating expenditures in any given year. An amount appropriated for unanticipated expenditure requirements that are adopted as part of the Budget with a majority vote of the City Council and can be used during the course of a fiscal year transferring the appropriation to elsewhere in the budget. The Appropriation for Contingencies expires June 30th of each fiscal year to be reestablished the following year.

1. During the public hearing on the Recommended Budget or at any properly noticed public meeting the City Council may consider reducing the amount set aside in the General Fund Appropriation for Contingencies.

E. Excess Fund Balance Available – When adopting the annual budget for the General Fund, the City Council will provide direction to the Director of Finance to reconcile the difference between the General Fund’s estimated and actual Fund Balance Available at the beginning of the budget period. In those instances when the actual Fund

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Balance Available is less than estimated, the City Director of Finance may be directed to reduce the General Fund Appropriation for Contingencies and/or General Fund Reserves. In those instances when the actual Fund Balance Available is greater than estimated, the Director of Finance may be given specific direction, generally within the following parameters:

1. The first priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to increase the General Fund Reserve and/or General Fund Appropriation for Contingencies to ensure it is maintained within the recommended 16.7 percent of the prior year’s General Fund operating expenditures.

3. The third priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to increase the Emergency/Catastrophic Reserve to put aside 5% to 10%.

3. The fourth priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to dedicate excess fund balance for known and quantified unfunded liabilities or one-time unmet needs, including but not limited to the following:
a. Employee pension plan contributions and pension obligation bond debt service
b. Other post-employment benefits (retiree health)
c. Unmet building or maintenance needs
d. Accrued employee leave
e. Litigation settlements
F. Unreserved Fund Balance – The City will maintain sufficient fund balances in the General Fund to provide adequate working capital and to accommodate required adjustments to other reserve accounts, including advances to other funds.

Appropriations or use of funds from Unreserved Fund Balances will require approval by the City Council.

G. Other Assignments or Commitments of the General Fund – Establishment of these policies do not preclude the City Council from setting aside additional funds for a specific project, program or capital item.

H. Specifying the Appropriate Circumstances for Drawing Down Reserves – It is to be expected that the reserve or budgetary cushion will temporarily diminish when unforeseen pressures affect the General Fund. Therefore, it is important to have a policy for drawing down reserves. The GFOA suggests those circumstances in which invasion of the general reserve may be warranted:

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• Emergency
• Non-recurring expenses
• One-time capital cost
There is no “one-size-fits-all” definition of what constitutes an “emergency” for purposes of administering a reserve policy. Ultimately, an “emergency” is what the City Council determines it to be. It will always reflect a carful balancing of the City Council’s desire to maintain an adequate reserve, with its desire to maintain essential services – and, in some cases, its obligation to maintain statutorily required serve levels.

Until the City reaches its general reserve goal, the budget process permits appropriations for one-time projects/expenses and capital projects. In the event that the City realizes reserves above the minimum levels defined, the first use of such funds should be a designation for capital projects and other one-time uses, up to and amount equal to a certain percent of General Fund revenues.

I. Directing the Replenishment of the Reserve – If and when reserves are diminished, the City Council should adopt a plan to replenish reserves to minimum levels within a specific timeframe.

J. The General Fund Reserve shall be the last resort in balancing the City budget.

K. A majority vote of the City Council shall be required to authorize General Fund Reserve expenditures.

L. No expenditures shall be made directly from the General Fund Reserve. Funds for expenditures shall be transferred to a cost center.

RESPONSIBILITIES
The City Manager and the City Director of Finance are hereby authorized and directed to implement the Policy hereby established when preparing the annual budget for each fiscal year. Additionally, the Finance Director will initiate a review of the policy within seven years of adoption. The review of the policy will include a review of best practices as well as a financial risk assessment.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Rebecca Campbell, Director of Finance
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Retroactively Approving Agreement with Paymentus Corporation for Electronic Payment Processing Services Description:

The City Council will consider adopting a Resolution retroactively approving a service agreement with Paymentus Corporation.

1. Adopt a Resolution retroactively approving a purchase agreement with Paymentus Corporation, a Delaware Corporation, for electronic payment processing services; and

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

BACKGROUND:

An agreement (Attachment A) with Paymentus Corporation (Paymentus) was entered into on June 6, 2019, and expires June 5, 2027. The issue is that the agreement wasn’t approved by City Council, as required by the Purchasing Guidelines. In order to cure this issue and bring this service agreement into compliance with our Purchasing Guideline thresholds, it is requested that the City Council, by resolution, retroactively authorize the contract.

DISCUSSION:

On July 2, 2026, the City of Santa Maria “went live” with phase one of its new Workday Enterprise Resource Planning (ERP) system. The new ERP has provided the City with increased transparency and visibility into its purchasing processes. It has recently been identified that there are a handful of contracts that may not be 100 percent in compliance with the City’s Purchasing Guidelines. Because of the massive transition from its 1998 legacy system and processes the purchasing authority (the City Manager) have provided departments approximately four to five months to correct these compliance issues. 2 Paymentus provides a service to the City’s utility customers for the opportunity for them to make payments to their account by Interactive Telephone Voice Response System ("IVR") or secure Internet interface provided online.

Fiscal Considerations
Paymentus charges the City approximately $1.75 per credit/debit card transaction and $0.75 for ACH/eCheck transaction that is collected by the City in addition to the corresponding payment as part of the transaction. The City is absorbing the fees that are currently estimated at $21,000 per month or $252,000 per year.

Impact on the Community
Approving this agreement will provide residential and commercial customers a host of self-service options to make paying bills easier and provide financial flexibility through a comprehensive platform featuring ACH/eCheck, credit and debit cards, as well as other electronic/digital methods.

Attachment(s):

A. Resolution
B. Agreement
Attachment A

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

RETROACTIVELY APPROVING A PURCHASE AGREEMENT WITH

PAYMENTUS CORPORATION, A DELAWARE CORPORATION,

FOR ELECTRONIC PAYMENT PROCESSING SERVICES
WHEREAS, the City has determined it is in the public interest to proceed with a master services agreement for electronic payment processing for its utility services; and WHEREAS, the Paymentus Corporation (Pamentus), a Delaware Corporation, is a provider of cloud-based bill payment technology and solutions; and WHEREAS, an agreement with Paymentus was entered into June 6, 2019, and expires June 5, 2027. The agreement wasn’t approved by the City Council as required by the Purchasing Guideline; and
WHEREAS, in order to cure this issue and bring this service agreement into compliance with our Purchasing Guidelines thresholds, it is requested that the City Council authorize the agreement.

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

SECTION 1. Retroactively approve agreement with Paymentus Corporation; and SECTION 2. Authorize City Manager, or designee, to execute the eight-year agreement subject to the terms outlined in the agreement for electronic payment processing services; 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

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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 7
th day of April 2026.

ATTEST:

MASTER SERVICES AGREEMENT
Client: City of Santa Maria (CA)
Client Address:

Contact for Notices to Client: Ricky Hawblitzel
Estimated Yearly Bills I Invoices: 250,000
This Master Services Agreement ("Agreement") is entered into as of the Effective Date below, by and between the Client identified above ("Client") and Paymentus Corporation, a Delaware corporation ("Paymentus").

WHEREAS Paymentus desires to provide and Client desires to receive certain services under the terms and conditions set forth in this Agreement. Paymentus provides electronic bill payment services to utilities, municipalities, insurance and other businesses.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby covenant and agree as follows. This Agreement consists of this signature page, General Terms and Conditions, and the schedules listed below:

Schedule A: Paymentus Service Fee Schedule
Schedule B- Paymentus Service Fee Schedule, Additional Services Schedule C - Insurance Requirements
This Agreement represents the entire agreement between the parties with respect to its subject matter and supersedes all prior written or oral agreements or understandings related to its subject matter and may be changed only by agreements in writing signed by the authorized representatives of the parties.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives.

Client
By: --~~~--~~~~------ -------
Name: (\Ar~~
Title: ~{eefov rof- 6 YtaVtcLDate: &(2o/r}
Approved to form:

Paymentus:

By -=~ Name: n=ortocalis Title: Senior Vice President
Date: June 6 2019

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Santa Maria City CouncilApril 7, 2026

Santa Maria City Council
April 7, 2026