Agenda — Santa Maria City Council, June 16, 2026 (part 1 of 6)

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

CITY COUNCIL AGENDA

CITY OF SANTA MARIA, CALIFORNIA

CITY HALL
110 EAST COOK STREET

Tuesday, June 16, 2026
CLOSED SESSION - 4:00 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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1. Councilmember Aguilera will participate remotely pursuant to Government Code §54953.8.3.

CLOSED SESSION

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

3. PUBLIC COMMENT PERIOD
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.

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

4.a Public Employee Performance Evaluation, Pursuant to Government Code §54957(b)(1)
Title: City Attorney

4.b Conference with Labor Negotiators, Pursuant to 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.

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

6. INVOCATION

7. PLEDGE OF ALLEGIANCE

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

9. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION

10. PRESENTATIONS

10.a Proclamation Recognizing Ann McCarty
The City Council will present a Proclamation honoring Ann McCarty for her decades of dedicated service, compassionate leadership, and lasting contributions to the community.

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10.b Presentation - Quarterly Economic Development Impact Reports by Santa Maria Valley Chamber of Commerce for October 2025 to March 2026 The City Council will receive a presentation from the Santa Maria Valley Chamber of Commerce on the Economic Development endeavors for the quarter of October 2025 to March 2026.

10.c Presentation - Fireworks Education and Enforcement The City Council will receive a presentation about this year’s fireworks education campaign and enforcement efforts.

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

12. 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.

12.a CITY MANAGER/CITY CLERK DEPARTMENT

12.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.

12.a.2 Approval of Minutes
RECOMMENDATION:

Approve the Minutes of the regular City Council meeting of June 2, 2026.

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12.a.3 Update on the Status of Senate Bill 707 (SB 707) Amendments to the Ralph M. Brown Act Implementation Requirements
The City Council will receive an informational update on the status of the SB 707 implementation requirements that are due on or before July 1, 2026.

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

RECOMMENDATION:

Receive and file an informational update regarding Senate Bill 707 (SB 707) Amendments to the Ralph M. Brown Act and the City’s implementation status of the requirements that are due on or before July 1, 2026.

12.a.4 Adoption of a Resolution Approving an Amendment to the City’s Comprehensive Schematic Pay Schedule, effective June 27, 2026 The City Council will consider adopting a Resolution approving the single Comprehensive Schematic Pay Schedule in compliance with the requirements of the Labor Code and the California Public Employees’ Retirement Law to implement previously agreed-to salary adjustments for the Santa Maria Police Officers’ Association, and Santa Maria City Firefighters Union Local 2020.

RECOMMENDATION:

Adopt a Resolution approving a Comprehensive Schematic Pay Schedule, effective June 27, 2026, to implement pay changes to address equity and cost of living increases, pursuant to Memorandum of Understanding with Santa Maria Police Officers’ Association; and Santa Maria City Firefighters Union Local 2020.

12.a.5 Adoption of Resolution Approving Amendment No. 2 to Letter Agreement with Aleshire and Wynder, LLP
The City Council will consider adopting a Resolution approving an amendment to the Letter Agreement with Aleshire and Wynder, LLP.

RECOMMENDATION:

Adopt a Resolution approving Amendment No. 2 to the Letter Agreement with Aleshire and Wynder, LLP. for continued legal employment and labor services and an increase of $100,000 for a total amount of $450,000; and

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

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12.b COMMUNITY DEVELOPMENT DEPARTMENT

12.b.1 Adoption of a Resolution Approving Amendment to Sales and Disposition Agreement (SDA), Estoppel, Amendment, and Partial Assignment of SDA, Subordination Agreement, and Parking Agreement with The Vernon Group The City Council will consider adopting a Resolution approving various agreements with Vernon Property Group, LLC in order to effectuate the closing of the Lot 2 property and facilitate development of the Perlman Apartments.

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to negotiate, finalize, and execute an amendment to various agreements pertinent to the closing on the downtown parcel known as Lot 2 in order to facilitate the development of the Perlman Apartments and the implementation of the Sales and Disposition Agreement dated September 17, 2024, with Vernon Property Group, LLC.

These agreements include:

Approve the Estoppel, Amendment, and Partial Assignment of the SDA to Danco Group; and

1. Approve the Subordination Agreement by and among the City; Citibank, N.A.; and Santa Maria North Broadway LP, a related party of Danco Group; and

2. Authorize the City Manager to negotiate, finalize, and execute a Parking Agreement with Vernon Property Group, LLC in substantially the form submitted hereto; and

3. Authorize the City Manager to negotiate, finalize, and execute an amendment to the SDA in a form approved by the City Attorney based on the terms outlined in this staff report; and

4. 5. Authorize the City Manager to execute any related documents.

12.c FINANCE DEPARTMENT

12.c.1 Payment of Warrants
RECOMMENDATION:

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

12.c.2 Payment of Payroll
RECOMMENDATION:

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

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12.c.3 Adoption of a Resolution Approving the 2026 Investment Policy Update The City Council will consider approving the annual Investment Policy for which the primary objectives are for the safety, liquidity, and yield of the City’s investment activities.

RECOMMENDATION:

Adopt a Resolution approving the City of Santa Maria’s 2026 Investment Policy.

12.c.4 Adoption of a Resolution Approving a Cooperative Purchasing Agreement with Vertosoft LLC, an Authorized Reseller for OpenGov, for Delivery and Implementation of a Budget & Financial Planning, Capital Project Management, and Grants Management System
The City Council will consider adopting a Resolution approving a Cooperative Purchasing Agreement with Vertosoft LLC, an authorized reseller of OpenGov, for delivery and implementation of a Budget & Financial Planning, Capital Project Management, and Grants Management system.

RECOMMENDATION:

Adopt a Resolution authorizing the use of a cooperative purchasing agreement with Vertosoft, LLC, an authorized reseller for OpenGov, for delivery and implementation of a Budget & Financial Planning, Capital Project Management, and Grants Management System; and

1. Approve a term of three years, in an amount not to exceed $889,242.46, with an option to renew for up to two additional one-year extension terms in an amount not to exceed $250,187.86 for the fourth year and in an amount not to exceed $262,697.25 for the fifth year; and

2. Authorize the City Manager or designee to enter into the Agreement and execute any and all renewals, contingent on City Council approval of the Fiscal Year 2026-28 biennial budget.

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12.d FIRE DEPARTMENT

12.d.1 Adoption of a Resolution Approving an Agreement with Santa Barbara Public Airport District for Aircraft Rescue and Firefighting Services The City Council will consider adopting a Resolution approving an agreement for Aircraft Rescue and Firefighting (ARFF) services between the City of Santa Maria and the Santa Maria Public Airport District.

RECOMMENDATION:

Adopt a Resolution approving an agreement with the Santa Maria Public Airport District for Aircraft Rescue and Firefighting (ARFF) services, contingent upon approval by the Airport District’s Board; and

1. Authorize the City Manager, or designee, to execute an agreement and to take all steps necessary to implement and sustain the program.

2. 12.e POLICE DEPARTMENT

12.e.1 2025 Annual Police Department Report
The City Council will receive and file the 2025 Annual Police Department Report.

RECOMMENDATION:

Receive and file the 2025 Annual Police Department Report.

12.e.2 Adoption of a Resolution Approving the Annual Military Equipment Use Report 2025-2026
The City Council will consider adopting a Resolution approving the Annual Military Equipment Use Report June 2025 to June 2026.

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

RECOMMENDATION:

Adopt a Resolution approving the Annual Military Equipment Use Report June 2025 to June 2026, including the acquisition of additional equipment and renewing Ordinance No. 2022-03, which adopted a Military Equipment Use Policy in compliance with Assembly Bill 481.

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12.f PUBLIC WORKS DEPARTMENT

12.f.1 Adoption of a Resolution Authorizing a Grant of Easement to Pacific Gas & Electric Company for Utility Infrastructure Associated with the ForeFront Solar Project
The City Council will consider adopting a Resolution granting Pacific Gas & Electric Company (PG&E) an easement on City-owned property to support utility infrastructure improvements associated with the ForeFront solar project.

RECOMMENDATION:

Adopt a Resolution authorizing an Easement Deed to Pacific Gas & Electric Company for a portion of City-owned property identified as APN 123-280-026 for utility infrastructure improvements associated with the ForeFront solar project; and

1. Authorize the City Manager, or designee, to execute the Easement Deed and any related documents necessary; and

2. 3. Direct City Clerk’s Office to send to County for recordation.

12.f.2 Adoption of a Resolution Approving Award of Construction Contract to CalPortland Construction for the Mahoney and Black Road Paving 2026 Project (Bid No. 2026-03)
The City Council will consider adopting a Resolution awarding a construction contract to CalPortland Construction for the Mahoney and Black Road Paving 2026 Project (Bid No. 2026-03). The project includes pavement rehabilitation improvements on Mahoney Road and Black Road, including roadway grinding, asphalt paving, striping, pavement markings, traffic control, and related work necessary to improve roadway conditions and extend the service life of the pavement.

Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 Existing Facilities of the California Environmental Quality Act (CEQA) State Guidelines because the project consists of roadway rehabilitation and maintenance of existing public facilities.

RECOMMENDATION:

Adopt a Resolution awarding a Construction Agreement to CalPortland Construction for the Mahoney and Black Road Paving 2026 Project, Bid No. 2026-03, in the amount of $1,987,998; 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.

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13. 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.

13.a Adoption of a Resolution Approving Alexander “Alex” Posada as Eligible for Naming Consideration of a City Park or Facility
The City Council consider adopting a Resolution approving the naming of a City facility in honor of Alexander “Alex” Posada.

RECOMMENDATION:

Adopt a Resolution approving the placement of Alexander “Alex” Posada on the City’s eligibility/resource list for future park, trail, and facility naming consideration.

13.b Consideration of Renaming Cesar E. Chavez Drive
The City Council will receive a summary of community input gathered following the May 13, 2026, Town Hall meeting regarding the renaming of Cesar E. Chavez Drive and provide direction to staff on how to proceed.

RECOMMENDATION:

Receive the community input summary for the renaming of Cesar E. Chavez Drive and provide direction to staff on next steps.

13.c Adoption of a Resolution and Presentation of the Santa Maria Downtown Multimodal Assessment Engagement Recap and Next Steps
The City Council will receive a presentation regarding the Santa Maria Downtown Multimodal Assessment (SMDMA) funded by Caltrans and consider adopting a Resolution accepting the concepts developed.

RECOMMENDATION:

Adopt a Resolution accepting the concepts developed in the Santa Maria Downtown Multimodal Assessment, which recommends transportation improvements for State Route (SR) 166 (Main Street) between Pine Street and Miller Street, as well as SR 135 (Broadway) from Cook Street to Mill Street.

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13.d Small Business Support Initiative
The City Council will receive a presentation and provide direction related to prospective updates to the Santa Maria Municipal Code and Downtown Specific Plan in an effort to provide support to small businesses and facilitate economic growth.

RECOMMENDATION:

Receive a presentation and provide direction related to prospective updates to the Santa Maria Municipal Code and Downtown Specific Plan.

13.e Introduction of an Ordinance Repealing and Replacing Chapter 7-5.04 of the Santa Maria Municipal Code Concerning Catering Vehicles
The City Council will consider introducing an Ordinance amending Chapter 7-5.04 of the Santa Maria Municipal Code, establishing updated regulations for catering vehicles operating on public and private property within the City of Santa Maria.

RECOMMENDATION:

Waive first reading and introduce an Ordinance repealing and replacing Chapter 7-5.04 of the Santa Maria Municipal Code concerning Catering Vehicles; and

1. 2. Set said ordinance for adoption at the next regular city council meeting.

13.f Continued from the May 5, 2026, City Council meeting: Introduction of an Ordinance Amending Chapters 8-10A (Cross-Connections) and 8-1.07 (Appeals) of Title 8 of the Santa Maria Municipal Code
The City Council will consider introducing an Ordinance amending Chapters 8-10A (Cross-Connections) and Chapter 8-1.07 (Appeals) of Title 8 of the Santa Maria Municipal Code.

RECOMMENDATION:

Waive first reading and introduce an Ordinance amending Chapter 8-10A and Chapter 8-1 of Title 8 of the Santa Maria Municipal Code concerning Cross-Connections and Applications for Public Service, necessary to implement the City’s Cross-Connection Control Plan and maintain compliance with State drinking water requirements; and

1. 2. Set said Ordinance for adoption at the next regular City Council Meeting.

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13.g Adoption of a Resolution for Proposed FY 2026-28 Budget The City Council will receive an update on the Fiscal Year (FY) 2026-28 Budget, including a General Fund and Measure U overview and will consider adopting a Resolution adopting the FY 2026-28 Biennial Budget.

RECOMMENDATION:

Receive a presentation on the Fiscal Year (FY) 2026-28 Biennial Budget and, following discussion and consideration;

1. Adopt a Resolution adopting the budget for Fiscal Years 2026 – 2027 and 2027-2028, and delegating the City Manager to implement the same.

2. 13.h Adoption of Resolutions Amending Election Resolutions Regarding Submission of a Question to Voters at the General Municipal Election to be held Tuesday, November 3, 2026
The City Council will consider adopting Resolutions, amending election resolutions regarding submission of a question to voters relating to adding Chapter 3-8B Imposing a Transactions and Use Tax and setting priorities for filing written arguments.

RECOMMENDATION:

Adopt a Resolution amending Resolution No 2026-85, calling and giving notice for the holding of a General Municipal Election and a Special Municipal Election on Tuesday, November 3, 2026, for the election of certain municipal officers and filling a vacancy, as required by the provisions of the laws of the State of California and for the submission to the voters a question relating to adding Chapter 3-8B imposing a transactions and use tax; and

1. Adopt a Resolution amending Resolution No. 2026-89, setting priorities for filing written arguments regarding a city measure and directing the city attorney to prepare an impartial analysis.

2. 14. REPORT BY CITY MANAGER

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

REPORTS)

16. 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.

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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 12th day of June 2026. /s/ DONNA G. SCHWARTZ, CMC
Chief Deputy City Clerk

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COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: David W. Rowlands, City Manager
DATE: June 16, 2026
SUBJECT: Proclamation Recognizing Ann McCarty
The City Council will present a Proclamation honoring Ann McCarty for her decades of dedicated service, compassionate leadership, and lasting contributions to the community.

BACKGROUND:

The Proclamation honors Ann McCarty for more than 30 years of dedicated service and leadership with the North County Rape Crisis and Child Protection Center. Ann began her career with the Center in 1994 as the Hotline Coordinator and later became Executive Director in 2015, where she guided the organization’s mission of providing education, prevention, advocacy, and support services to individuals and families impacted by sexual assault, child abuse, and human trafficking. Through her compassionate leadership, community partnerships, and lifelong commitment to advocacy, Ann has made a lasting impact throughout Santa Barbara County. The City of Santa Maria honors Ann for her years of service to the community.

Proclamation Requested by: Mayor Alice Patino
Attachment(s): Proclamation
City of Santa Maria
Santa Maria, California
Proclamation
WHEREAS, the City of Santa Maria recognizes Ann McCarty for more than 30 years of dedicated service, compassionate leadership, and commitment to supporting survivors and strengthening our community; and
WHEREAS, Ann began her career with the North County Rape Crisis and Child Protection Center in 1994 as the Hotline Coordinator, where she worked alongside volunteers, trained advocates, and community partners to help build programs focused on education, prevention, and support; and
WHEREAS, Ann became Executive Director in 2015 and has provided exceptional leadership in advancing the Center’s mission, fostering community partnerships, and ensuring continued services for individuals and families impacted by sexual assault, child abuse, and human trafficking; and
WHEREAS, throughout her tenure, Ann has been a dedicated advocate and community leader, serving on numerous community initiatives and helping strengthen collaboration throughout Santa Barbara County; and
WHEREAS, the City of Santa Maria proudly honors Ann McCarty for her years of service, advocacy, and lasting contributions, and extends its appreciation for the positive impact she has made in the lives of countless individuals and within our community.

NOW, THEREFORE, I ALICE M. PATINO, Mayor of the City of Santa Maria hereby recognize and honor:
“Ann McCarty”
for her outstanding dedication, leadership, and service to our community, and commend her for the lasting impact she has made through her commitment to advocacy, healing, and positive change.

IN WITNESS THEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 16th day of June 2026.

______________________________
Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chuen Wu, Assistant City Manager
DATE: June 16, 2026
SUBJECT: Presentation - Quarterly Economic Development Impact Reports by Santa Maria Valley Chamber of Commerce for October 2025 to March 2026
The City Council will receive a presentation from the Santa Maria Valley Chamber of Commerce on the Economic Development endeavors for the quarter of October 2025 to March 2026.

BACKGROUND:

The City of Santa Maria partners with the Santa Maria Valley Chamber of Commerce (Chamber) to attract visitors to the city and provide economic development enhancement and support within the city. In exchange for these services, the Chamber receives a portion of the Transient Occupancy Tax (TOT) from the City.

DISCUSSION:

The Chamber supports economic growth and development in the Santa Maria Valley region. Throughout the quarters, the Chamber provided direct assistance to potential new businesses and local enterprises. The Chamber’s Economic Impact Report covering the months of October 2025 to March 2026 is included as an attachment.

Attachment(s)
A. Economic Impact Report October 2025 to March 2026
Attachment A

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chuen Wu, Assistant City Manager
DATE: June 16, 2026
SUBJECT: Presentation - Fireworks Education and Enforcement Description:

The City Council will receive a presentation about this year’s fireworks education campaign and enforcement efforts.

BACKGROUND:

The City’s approach regarding fireworks focuses on education and enforcement. Within City limits, Safe and Sane fireworks can be used on July 4th between 11:00 a.m. and 11:00 p.m. Violations are subject to a $1,000 fine. Santa Maria continues to experience widespread use of illegal fireworks, with numerous citations issued last year. The City’s goal is to promote a safe, responsible, and enjoyable celebration of the nation’s Independence Day.

DISCUSSION:

The City encourages the Santa Maria community to celebrate our nation’s birthday responsibly, in particular, this year, the 250th anniversary of the United States of America.

This includes the sale and use of legal, safe and sane fireworks, during approved hours.

This aims to promote courtesy and respect with our neighbors, minimizing impacts on residents, including persons and pets that are noise-sensitive. The City strives to mitigate against illegal fireworks activity, recognizing the impacts to neighbors, but also the risks that illegal fireworks pose to health and safety to both people and property.

The City’s education campaign includes targeted stakeholder outreach, new releases, use of City Government Channel 23, the use of the City’s and Police Department’s social media channels, paid ads in English and Spanish on local radio, and distribution of posters and flyers.

Consistent with past enforcement efforts, violators will receive a $1,000 fine. Our Police Department will deploy officers the days leading up to and including the July 4th weekend to look for anyone using fireworks illegally. Fire prevention officers and rangers will also patrol the community. The Fire Department is again contracting with a vendor to fly an aircraft equipped with GPS and video. The City can trace the location of illegal fireworks and issue a citation.
2 The City invites residents to participate in this year’s City-sponsored activities to celebrate July 4th (Independence Day). This includes a drone show in collaboration with Downtown Fridays on Friday, July 3rd at 8:30 p.m. On July 4th, the City will host a Youth Center open house with activities, including free recreation swim at Paul Nelson Aquatic Center, live music, bounce houses, and more at Elks Field.
1 CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA June 2, 2026, 5:30 p.m.

City Hall Council Chambers
110 East Cook Street
Santa Maria
Roll Call: Councilmember Maribel Aguilera, Councilmember Richard Batalla, Councilmember Gloria Soto, Mayor Pro Tem Gloria Flores, 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, Recreation Services Manager Dennis Smitherman, Director of Recreation and Parks Ramon Galo, Director of Public Works Brett Fulgoni, Library Director Dawn Jackson, Chief Human Resources Officer Graciela Reynoso, Interim Director of Utilities Michelle Ruiz, Police Chief Christopher Williams, Chief Deputy City Clerk Donna Schwartz, Assistant City Clerk Alexandra Valadez
_____________________________________________________________________

CLOSED SESSION

1. CALL TO ORDER
At 4:31 p.m. Mayor Patino called the meeting to order.

ROLL CALL:

MEMBERS PRESENT:

Councilmember Aguilera (arrived at 4:33 p.m.), Councilmember Batalla, Councilmember Soto, Mayor Pro Tem Flores, and Mayor Patino.

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. Speaking from the public was Nicole Bryant.

Written public comment was received by Gavin Harrington, Patrick Crowley, and Tiffany Pelletier.

3. RECESS-CLOSED SESSION
At 4:34 p.m. Mayor Patino recessed to Closed Session.

3.a Public Employee Performance Evaluation, Pursuant to California Government Code §54957(b)(1)

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

3.c 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 from Heritage Evangelical Presbyterian Church gave the Invocation. 2 6. PLEDGE OF ALLEGIANCE
Councilmember Batalla led the Pledge of Allegiance.

7. CALL TO ORDER
Mayor Patino called the meeting to order at 5:30 p.m.

8. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION
City Attorney Watson reported that instructions were provided to the City's negotiators for items 3.a through 3.c.

9. PRESENTATIONS

9.a Proclamation Proclaiming June 2026 as “Pride Month” The City Council presented a Proclamation proclaiming June 2026 as "Pride Month" in the City of Santa Maria. The Proclamation was accepted by Suzette Lopez Boren, Executive Director of House of Pride and Equality.

10. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Mayor Patino invited public comment. Speaking from the public was Nicole Bryant, Scott Washburn, Lyiam Galo, Chad Connolly, and Jimmy Melena.

11. CONSENT CALENDAR
Consent Calendar Items 11.a1 through 11.f.1 were approved as presented, including the adoption of Resolution Nos. 2026-79, 2026-80, and 2026-81 and Ordinance Nos. 2026-02 and 2026-03. The recorded vote appears with each item below.

Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
Adopt the Consent Calendar as submitted.

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

11.a CITY MANAGER/CITY CLERK DEPARTMENT

11.a.1 Ordinances and Resolutions
Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
Waived the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

Motion carried by a recorded vote

11.a.2 Approval of Minutes
Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
Approved the Minutes of the regular City Council meeting of May 5, 2026.

Motion carried by a recorded vote
3 11.b COMMUNITY DEVELOPMENT DEPARTMENT

11.b.1 Adoption of Ordinance No. 2026-02 repealing and reenacting the City of Santa Maria Official Zoning Map
Action: Adopted as Ordinance No. 2026-02.

Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
Waived the second reading and adopted Ordinance No. 2026-02, approving a Zoning Map Amendment (Z2026-0001) repealing and reenacting the City of Santa Maria Official Zoning Map.

Motion carried by a recorded vote

11.c FINANCE DEPARTMENT

11.c.1 Payment of Warrants
Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
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

11.c.2 Payment of Payroll
Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

Motion carried by a recorded vote

11.d PUBLIC WORKS DEPARTMENT

11.d.1 Adoption of a Resolution Authorizing Filing of FY 2026-27 CA Transit Development Act Claim For $7,320,246
Action: Adopted as Resolution No. 2026-79.

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

1. Adopted a Resolution authorizing the filing of the City of Santa Maria’s claim for California Transit Development Act funds with the Santa Barbara County Association of Governments for allocation of Transit Development Act funds for Fiscal Year 2026-27; and

2. Authorized City Manager or designee to execute and file claim.

Motion carried by a recorded vote
4 11.e RECREATION & PARKS DEPARTMENT

11.e.1 Adoption of a Resolution Approving Rental Fees for the Japanese Community Center Action: Adopted as Resolution No. 2026-80.

Adopted a Resolution approving rental fees for the Japanese Community Center.

Motion carried unanimously

11.e.2 Adoption of a Resolution Authorizing Submittal of a Grant Application to the California Department of Justice Tobacco Grant Program and Approving Allocation of One Limited-Term Park Services Officer II Position
Action: Adopted as Resolution No. 2026-81.

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

1. Adopted a Resolution authorizing the submittal of a grant application to the California Department of Justice Tobacco Grant Program and approving the allocation of one limited-term Park Services Officer II position; and

2. Authorized the City Manager, or designee, to execute all required grant documents.

Motion carried by a recorded vote

11.f UTILITIES DEPARTMENT

11.f.1 Adoption of Ordinance No. 2026-03 Approving Solid Waste Collection Rates Commencing Each July 1 from 2026 through 2029
Action: Adopted as Ordinance No. 2026-03.

Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
The City Council waived second reading and adopted Ordinance No. 2026-03, approving solid waste collection rates commencing each July 1 from 2026 to 2029.

Motion carried by a recorded vote

12. PUBLIC HEARING

12.a Adoption of a Resolution Approving a Preliminary FY 2026-28 Budget Development Mayor Patino requested City staff and the Budget Ad Hoc Committee work closely with Santa Maria Swim Club leadership regarding the proposed pool closure prior to the June 16, 2026, City Council meeting.

Mayor Patino closed the meeting for a short recess.

The City Council received a presentation from the Director of Finance, Rebecca Campbell on the Fiscal Year (FY) 2026-28 Biennial Budget, heard public testimony on the preliminary budget proposals, and provided input.

Councilmember Aguilera left the meeting at 6:57 p.m.

Mayor Patino opened the public hearing at 7:17 p.m.. Speaking from the public was Nancy Jo Ward.

Written public comment was received by Agnes Wallace, Allyson Appel, Amanda Broggie, Amanda Chojnacky, Amanda Hole, Amanda Kotar Fredrick, Amanda Medina, Amy Bertao, Amy Molina, Amy Silveira, Andrea Marez, Andrea Zuckerbraun, Andrew Kelley & Monika Prince, Armando Ramos, Suzie Guzman, Barbara Sandys, Brandi Yates, Brooks Van Wingerden, Cara Jones, Charlotte Pettit, Chelsea Krause, Cheryl Poirer, Chris Manfredi, Christine Hewett, Christine Mann, Cindy Dias, Colleen Medford, 5 Corinna Alavarado, Daisy Herrick, Dalia Zepeda, Denise Woods, Dharamesh Patel, Diana Zarate, Douglas Jones, Dustin Davis, Ed Cacarey, Elain Healy, Emily Mathis, Emily Rhule, Emily Zbin, Enrique Amoroso, Erica Alterwitz Meierhans, Esteban Lopez, Ethan Brown, Fabi, Francesca Muto, Geremy Blandino, Geri Coats, Gina Keough, Hailee Bond, Heather Bouwmeester, Heidi Morse, Fraser, Jacqueline Quezada, Jake, James Freidrich, Jami Fordyce, Jamie Tanner, Jana Zwilling, Jason Fredrick, Jeff Chaney, Jennifer Rock, Jo Bergstrom, Joan Velasquez, Joelene Wiggins, Johnna Perez, Jose Garcia, Joy Cook, Judy Ramos, Julie Southern, Kaitlyn Stone, Katherine Morales, Kathy Calahan, Katia Corona, Kayla O’Kelly Davis, Kelsy Gee, Kevin Ochoa, Kristen Trefflick, Kristen Pluhar, Kristy Schneider, Krystal Zoost, Kyra Hill, Logan Southern, Lori Williamson, Lyuba Corbett, Macy Manfredi, Madeline, Malorie Mendoza, Matt Brown, Megan, Michael Specht, Mike Ashemore, Mike, Natas Coats, Natasha Martinez, Nicole Latham, Nisa Morey, Noemi Carias, Noemi Carmona, Parker Reynolds, Patrick Wineman, Penny Popp, Piper Manfredi, Raeanna Dupuis, Reynolds Family, Rob Knight, Roberta Thompson, Rocio Cowley, Roxanne Leasure, Ruth Jackson, Ryan Tully, Samantha Mello, Sara Chaney, Sarah Wineman, Sheri Etheridge, Tiffany Barnick, Victor Velasquez, Witny Gill, Zabella Coats, Andrea Zuckerbraun, Kaitlyn Stone, Mark T.

Bennett, Noemi C. Carias, Nova Bevier, and Sandra A. Ricca.

Mayor Patino closed the public hearing at 7:22 p.m.

Moved by: Councilmember Aguilera
Seconded by: Mayor Pro Tem Gloria Flores
Exclude proposed pool closure from today's budget discussion.

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

12.b Adoption of a Resolution Approving an Updated 2026 User Fee Schedule Mayor Patino opened the public hearing at 7:31 p.m. With no public speakers present, the hearing was immediately closed.

Action: Adopted as Resolution No. 2026-82.

Moved by: Councilmember Soto
Seconded by: Mayor Pro Tem Gloria Flores
Adopted a Resolution approving the addition and update of Citywide User Fees identified in the Annual User Fee Update and 2026 User Fee Schedule excluding Utilities fees that were not changed correctly (S-191, S-192, S-198, S-222A.1, S-222A.2.).

Ayes (4): Councilmember Richard Batalla, Councilmember Soto, Mayor Pro Tem Gloria Flores, and Mayor Patino
Absent (1): Councilmember Aguilera
Motion carried by a recorded vote (4 to 0)
6 13. REGULAR BUSINESS

13.a Adoption of Resolutions Approving a Disruption Policy in the Event there is an Interruption to Telephonic or Internet Services During a City Council Meeting and Adoption of a Public Outreach Policy
Action: Adopted as Resolution Nos. 2026-83 and 2026-84.

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

1. Adopted a Resolution approving a Disruption Policy in the event there is a disruption of telephonic or internet service occurring during a city council meeting in compliance with Senate Bill 707 and Government Code §54953.4(b)(1)(A)(i)(l)(ib)(la); and

2. Adopted a Resolution approving a Public Outreach Policy.

Ayes (4): Councilmember Richard Batalla, Councilmember Soto, Mayor Pro Tem Gloria Flores, and Mayor Patino
Absent (1): Councilmember Aguilera
Motion carried by a recorded vote (4 to 0)

13.b Adoption of Resolutions for the General and Special Municipal Election to be held Tuesday, November 3, 2026
Action: Adopted as Resolution Nos. 2026-85, 2026-86, 2026-87, 2026-88, 2026-89, and 2026-90.

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

1. Adopted a Resolution calling and giving notice for the holding of a General Municipal Election and a Special Municipal Election on Tuesday, November 3, 2026, for the election of certain municipal officers and filling a vacancy, as required by the provisions of the laws of the State of California and for the submission to the voters a question relating to adding Chapter 3-8B imposing a transactions and use tax; and

2. Adopted a Resolution requesting the Board of Supervisors of the County of Santa Barbara to consolidate and render specified services to the City related to the conduct of a General Municipal Election and Special Municipal Election both to be held on Tuesday, November 3, 2026; and

3. Adopted a Resolution adopting regulations for candidates for elective office pertaining to Candidates’ Statements submitted to the voters; and

4. Adopted a Resolution providing for the conduct of a Special Runoff Election for Elective Offices in the event of a tie vote at any Municipal Election; and

5. Adopted a Resolution setting priorities for filing written arguments regarding a city measure and directing the city attorney to prepare an impartial analysis; and

6. Adopted a Resolution providing for the filing of rebuttal arguments for city measure submitted at the General Municipal Election to be held on Tuesday, November 3, 2026.

Moved by: Councilmember Soto
Seconded by: Mayor Pro Tem Gloria Flores
Adopted a Resolution:

1. Rescinding Resolution No. 2026-76, which previously declared the City Council's intent to levy and collect the 2026-2027 landscape assessments and set a public hearing date; and

2. Approving, or reaffirming approval of, the Engineer's Reports for the 2026-2027 landscape maintenance districts and special benefit zones assessment proceedings; and

3. Declaring the City Council's intent to levy and collect assessments for the four landscape maintenance districts and the Special Benefit Zones for Fiscal Year 2026-2027; and

4. Setting a new time for a public hearing on July 7, 2026, at 5:30 p.m., or as soon thereafter as the matter may be heard.

Ayes (4): Councilmember Richard Batalla, Councilmember Soto, Mayor Pro Tem Gloria Flores, and Mayor Patino
Absent (1): Councilmember Aguilera
Motion carried by a recorded vote (4 to 0)

14. REPORT BY CITY MANAGER
City Manager Rowlands reported the next City Council Meeting is scheduled for June 16th. Items on the agenda include the 2026-28 Budget Adoption Item, the Urban Water Management Plan, and the Joint Exercise of Powers Agreement for Santa Maria Fairpark Authority. Lasty he concluded by recognizing the new Director of Recreation and Parks, Ramon Galo.

15. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB 1234 REPORTS) Councilmember Flores shared she attended the CommUnify Meeting, the National Day of Prayer event, Budget Review Meeting, Joint Powers Agreement Meeting for the Santa Maria Fairpark Authority, the Santa Maria Elks Rodeo VIP Reception Dinner, and the Santa Maria Elks Rodeo Parade.

Councilmember Batalla announced he attended the Ride Along with Fire Station 1, the Santa Maria Elks Club Student/Citizen of the Year Awards, Tipocot Event, Food Distribution at Vida Church, Allan Hancock Scholarship Awards Ceremony, West Coast Kustoms Hall of Fame Media Dinner, the Santa Maria Elks Rodeo VIP Reception Dinner, and the Santa Maria Elks Rodeo Parade.

Councilmember Aguilera was not present.

Councilmember Soto informed she attended the Agriculture Labor Relations Board Grand Opening Ceremony, the Town Hall Press Conference in Down Town Los Angeles, Joint Powers Agreement Meeting for the Santa Maria Fairpark Authority, and the Non-profit Santa Barbara State Sector Event.

Mayor Patino reported attending the Ben Heighes Show, the Santa Maria Elks Club Student/Citizen of the Year Awards, the National Day of Prayer event, a meeting of the Local Agency Formation Commission (LAFCO), the Fighting Back Santa Maria Valley Board Meeting, the Mayor’s Youth Task Force meeting, the Pastors Network Navigation meeting, the Santa Barbara County Association of Governments (SBCAG) Board of Directors meeting, the Memorial Day Ceremony at Santa Maria Cemetery, the Mission Hope Cancer Center Donor Sign Unveiling, the Santa Maria Elks Rodeo VIP Reception Dinner, the Santa Maria Elks Rodeo Parade, and the Vandenberg Space Force Base Regional Housing Strategy Session.
8 16. ADJOURNMENT
There being no further business before the City Council, Mayor Patino declared the City Council meeting adjourned at 8:06 p.m.

Chief Deputy City Clerk Alice M. Patino, Mayor

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Donna G. Schwartz, Chief Deputy City Clerk
DATE: June 16, 2026
SUBJECT: Update on the Status of Senate Bill 707 (SB 707) Amendments to the Ralph M. Brown Act Implementation Requirements
Description:

The City Council will receive an informational update on the status of the SB 707 implementation requirements that are due on or before July 1, 2026.

RECOMMENDATION:

BACKGROUND:

On April 7, 2026, staff presented Council with an informational update on SB 707 that amends the Ralph M. Brown Act to modify and clarify requirements related to remote participation, teleconferencing, and meeting procedures for legislative bodies. Certain provisions became effective January 1, 2026, with additional requirements effective on or before July 1, 2026.

DISCUSSION:

On or before July 1, 2026, the following becomes effective and shall remain in effect only until January 1, 2030:
 Adoption by the City Council of a Policy on Disruption of Telephonic or Internet Service
Implementation Status: Finalized and formerly adopted by the City Council during an open session held on June 2, 2026.
2  Two-Way Telephone or Two-Way Audio-Visual platform. Requires eligible legislative bodies (City Council) to provide a two-way telephonic or audio-visual platform that allows members of the public to provide public comment and receive the same allotted time as in-person speakers.

Implementation Status: May 2026 purchased Zoom to allow two-way telephonic or audio participation during public comment and will allot same amount of time as in-person speakers. To go live at the July 7th City Council meeting.  Outreach to encourage participation: Requires eligible legislative bodies (City Council) to:
o Conduct outreach to encourage participation from underrepresented and non-English-speaking communities
o Electronically accept requests for meeting agendas and related documents
o Provide a prominent direct link on the City’s primary homepage explaining how to request materials
o Maintain a webpage dedicated to public meetings that includes:
 A general explanation of the public meeting process
 Public comment procedures
 A calendar of meeting dates, times, and locations
Implementation Status: Previous and ongoing efforts have been made to encourage participation. City Council meeting agenda website to be updated by June 30th with instructions on how to participate remotely during public comment in both English and Spanish.
 City Council Meeting Agenda and Website Translation requirements – Defines “applicable languages” as languages spoken by at least 20 percent of the population within the jurisdiction, as determined by the most recent American Community Survey, where 20 percent or more of those individuals speak English less than “very well.”
Implementation Status: May 2026 purchased translation software Deepl for meeting agenda and website translation requirements. City Council meeting agenda website to be updated by June 30th with instructions on how to participate remotely during public comment in both English and Spanish. Interpretation services have previously and are currently being provided at City Council meetings
 Members of the Public May Post Their Own Translation of City Council Agendas on a readily available posting board made available by the agency.

Implementation Status: May 2026 bulletin board installed for public to post their own translation of City Council agendas.
3 Fiscal Considerations
Cost to purchase the following:

Consultant for implementation of SB 707 requirements. $7,500 Zoom $ 970
Deepl $ 345
Bulletin Board $ 40
These purchases were mandated by the State and were not included in the approved budget, resulting in an unanticipated expense. The costs were covered by using funds from the department's supplies account. City Clerk’s Office will absorb annual operating costs for SB 707 of $1,315.

Impact on the Community
SB 707 enhances transparency, consistency, and accessibility in public meetings. By clarifying remote participation standards, establishing procedures for technological disruptions, and expanding outreach and translation requirements, the legislation strengthens public access and promotes greater civic participation. These updates support public trust by ensuring meetings remain predictable, open, and accessible.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Graciela Reynoso, Chief Human Resources Officer
DATE: June 16, 2026
SUBJECT: Adoption of a Resolution Approving an Amendment to the City’s Comprehensive Schematic Pay Schedule, effective June 27, 2026 Description:

The City Council will consider adopting a Resolution approving the single Comprehensive Schematic Pay Schedule in compliance with the requirements of the Labor Code and the California Public Employees’ Retirement Law to implement previously agreed-to salary adjustments for the Santa Maria Police Officers’ Association, and Santa Maria City Firefighters Union Local 2020.

RECOMMENDATION:

BACKGROUND:

In administering the City’s classification and compensation system, and workforce planning, City Human Resources will periodically present to the Council recommended changes and salary adjustments for formal approval. Human Resources seeks approval to adjust salaries to implement previously negotiated salary adjustments to the Santa Maria Police Officers’ Association; and the Santa Maria City Firefighters Union Local 2020 (Fire MOU).

Implement Negotiated Salary Adjustments:

In February of 2025, City Council adopted a Resolution to ratify the successor Memorandum of Understanding with the Santa Maria Police Officers’ Association. Within the Memorandum of Understanding is a stipulation for a 1% base salary equity adjustment, effective June 27, 2026.

In May of 2025, City Council adopted a Resolution to ratify the successor Memorandum of Understanding with Santa Maria City Firefighters Union Local 2020. Within 2 Memorandum of Understanding is a stipulation for a 4 percent base salary adjustment, effective June 27, 2026.

Employees currently employed with the City in the respective unions mentioned above will receive the salary adjustments outlined above.

DISCUSSION:

To implement any equity or salary adjustment for employees, the City is required to submit the proposed adjustments to the City Council in open session for approval. This is mandated by the California Code of Regulations. Specifically, the California Public Employees’ Retirement System regulations, Sections 570.5 and 571.1 (2 CCR §§ 570.5 and 571.1). These regulations dictate that when any salary changes occur, the City Council must adopt, during a publicly noticed meeting that adheres to all open meeting laws, a stand-alone, unified pay schedule that encompasses all employee classifications.

This Council Agenda Report, along with its attachments, serves as the official record of the requested salary adjustments. Human Resources requests City Council approval for the implementation of salary adjustments to the Police Officers’ Association and Fire Local 2020 units; and the associated changes to the City’s Comprehensive Schematic Pay Schedule (attachment B), effective June 27, 2026.

Alternative(s)
A decision by the City Council to not approve the Comprehensive Schematic Pay Schedule would result in being out of compliance with the Public Employees’ Retirement Law and the Labor Code.

Fiscal Considerations
The fiscal impact of implementing the salary increases for Police Officers’ Association is $170,000 and $431,400 for Fire Local 2020. This will be included in the adopted budget for Fiscal Year 2026-2028.

Impact on the Community
Overall, City services will continue to be provided by City employees with no decrease in the level of service to the public. Instead, it is expected that there will be a positive impact and increase to current service levels to the public achieved by attraction and retention of a highly skilled workforce to serve the Santa Maria community; increased employee job satisfaction; and increased performance. The requested schedule change will enhance service to the community and maintain compliance with the Public Employees’ Retirement Law.

ATTACHMENT(S)
A. Resolution
B. FT_PT_LS_Salary Schematic
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

APPROVING A COMPREHENSIVE SCHEMATIC PAY
SCHEDULE, EFFECTIVE JUNE 27, 2026, TO IMPLEMENT PAY

CHANGES TO ADDRESS EQUITY AND COST OF LIVING

INCREASES, PURSUANT TO MEMORANDUM OF
UNDERSTANDING WITH SANTA MARIA POLICE OFFICERS’
ASSOCIATION; AND SANTA MARIA CITY FIREFIGHTERS
LOCAL 2020
WHEREAS, the California Public Employees’ Retirement System (“CalPERS”) requires adoption of a publicly presented Comprehensive Salary Schedule to implement salary adjustments, as set forth in the California Public Employees’ Retirement System regulations, Sections 570.5 and 571.1 (2 CCR §§ 570.5 and 571.1); and
WHEREAS, the City has compiled the necessary salary data to create a single salary schedule in compliance with the requirement of CalPERS, attached to the Council Agenda Report as Attachment B, dated June 16, 2026, for effective date June 27, 2026.

WHEREAS, the Santa Maria City Council has agreed previously to equity and salary adjustments through labor agreements with the Santa Maria Police Officers’ Association; and the Santa Maria City Firefighters Local 2020; and NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

SECTION 1. The above recitals are true and correct and incorporated herein; and SECTION 2. The Comprehensive Schematic Pay Schedule for all full-time and part-time employees attached to the City Council Agenda Report as Attachment B, dated June 16, 2026 and effective June 27, 2026, incorporated herein by reference, is hereby authorized and approved; and
SECTION 3. Employees in the Santa Maria Police Officers’ Association will receive a one percent base salary equity adjustment, effective June 27, 2026; and SECTION 4. Employees in the Santa Maria City Firefighters Local 2020 will receive a four percent base salary adjustment, effective June 27, 2026; and SECTION 5. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

Attachment A

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 16th day of June 2026.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_________________________
City Attorney
APPROVED AS TO CONTENT:
_________________________
Department Director
_________________________
City Manager
City of Santa Maria
Comprehensive Schematic Pay Schedule Adopted 6-16-2026
Effective 6-27-2026
Grade Elected Officials
001 MAYOR 1,956.90
002 CITY COUNCILMEMBER 1,706.90
Grade Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H 322 ACCOUNT CLERK - SCALE HOUSE g 1,882.48 1,976.60 2,075.43 2,179.20 2,288.16 324 ACCOUNT CLERK I g 1,836.52 1,928.35 2,024.77 2,126.01 2,232.31 323 ACCOUNT CLERK II g 2,031.08 2,132.63 2,239.26 2,351.22 2,468.78 370 ACCOUNTING TECHNICIAN I g 2,230.37 2,341.89 2,458.98 2,581.93 2,711.03 371 ACCOUNTING TECHNICIAN II g 2,459.52 2,582.50 2,711.63 2,847.21 2,989.57 374 ACCOUNTING TECHNICIAN III g 2,582.49 2,711.61 2,847.19 2,989.55 3,139.03 367 ADMINISTRATIVE ASSISTANT g 2,448.11 2,570.52 2,699.05 2,834.00 2,975.70 436 ADMINISTRATIVE LEADER m 3,631.57 3,794.99 3,965.76 4,144.22 4,330.71 4,525.59 4,729.24 4,942.06 447 ARFF SPECIALIST I f 3,135.03 3,291.78 3,456.37 3,629.19 3,810.65 448 ARFF SPECIALIST II f 3,448.47 3,620.89 3,801.93 3,992.03 4,191.63 176 ASSISTANT CITY ATTORNEY (Org Leader Broadband - Non Safety) m 6,519.61 - - - 10,866.01 146 ASSISTANT CITY MANAGER (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 203 ASSISTANT PLANNER g 2,799.63 2,939.61 3,086.59 3,240.92 3,402.97 008 ASSISTANT TO THE CITY MANAGER m 4,696.07 4,930.87 5,177.41 5,436.28 5,708.09 204 ASSOCIATE PLANNER g 3,532.27 3,708.88 3,894.32 4,089.04 4,293.49 176 ASST DIR OF RECREATION & PARKS (Org Leader Broadband - Non Safety) m 6,519.61 - - - 10,866.01 388 AUTOMOTIVE SERVICE WRITER g 2,660.01 2,793.01 2,932.66 3,079.29 3,233.25 140 BUILDING DIVISION MANAGER m 5,111.39 5,366.96 5,635.31 5,917.08 6,212.93 217 BUILDING INSPECTOR I g 2,643.11 2,775.27 2,914.03 3,059.73 3,212.72 220 BUILDING INSPECTOR II g 2,914.72 3,060.46 3,213.48 3,374.15 3,542.86 347 BUILDING PERMIT TECHNICIAN I g 2,264.17 2,377.38 2,496.25 2,621.06 2,752.11 348 BUILDING PERMIT TECHNICIAN II g 2,505.98 2,631.28 2,762.84 2,900.98 3,046.03 438 BUSINESS LEADER m 5,164.46 5,396.86 5,639.72 5,893.51 6,158.72 6,435.86 6,725.48 7,028.13 164 BUSINESS SYSTEMS ANALYST m 4,035.23 4,236.99 4,448.84 4,671.28 4,904.84 230 CAD TECHNICIAN g 2,775.70 2,914.49 3,060.21 3,213.22 3,373.88 264 CHIEF BUILDING INSPECTOR g 3,212.43 3,373.05 3,541.70 3,718.79 3,904.73 130 CHIEF DEPUTY CITY CLERK m 4,546.61 4,773.94 5,012.64 5,263.27 5,526.43 146 CHIEF HUMAN RESOURCES OFFICER (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 146 CHIEF INFORMATION OFFICER (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 150 CHIEF OF POLICE (Corp Leader Broadband - Safety) psmp 8,735.19 - - - 13,102.79 226 CHIEF PUBLIC WORKS INSPECTOR g 2,814.06 2,954.76 3,102.50 3,257.63 3,420.51 146 CITY ATTORNEY (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 179 CITY MANAGER (Broadband) m 10,254.32 - - - 14,601.85 166 CODE ENFORCEMENT OFFICER I g 2,730.08 2,866.58 3,009.91 3,160.41 3,318.43 167 CODE ENFORCEMENT OFFICER II g 2,981.30 3,130.37 3,286.89 3,451.23 3,623.79 165 CODE ENFORCEMENT SUPERVISOR g 3,588.45 3,767.87 3,956.26 4,154.07 4,361.77 168 CODE ENFORCEMENT TECHNICIAN g 2,195.58 2,305.36 2,420.63 2,541.66 2,668.74 211 COMMUNITY PROGRAMS MANAGER m 4,388.79 4,608.23 4,838.64 5,080.57 5,334.60 340 CONFIDENTIAL OFFICE CLERK I m 1,652.49 1,735.11 1,821.87 1,912.96 2,008.61 341 CONFIDENTIAL OFFICE CLERK II m 1,825.81 1,917.10 2,012.96 2,113.61 2,219.29 311 CONFIDENTIAL SECRETARY m 2,283.61 2,397.79 2,517.68 2,643.56 2,775.74 343 CONFIDENTIAL TECHNICIAN I m 2,283.61 2,397.79 2,517.68 2,643.56 2,775.74 344 CONFIDENTIAL TECHNICIAN II m 2,517.68 2,643.56 2,775.74 2,914.53 3,060.26 346 CONFIDENTIAL TECHNICIAN III m 2,914.54 3,060.27 3,213.28 3,373.94 3,542.64 146 CORPORATE/EXECUTIVE LEADER - NON SAFETY (Broadband) m 8,258.16 - - - 12,604.56 150 CORPORATE/EXECUTIVE LEADER - SAFETY (Broadband) psm 8,735.19 - - - 13,102.79 265 CREW LEADER/MAINTENACE SPECIALIST g 2,553.71 2,681.40 2,815.47 2,956.24 3,104.05 298 CRIME ANALYST I g 2,866.05 3,009.35 3,159.82 3,317.81 3,483.70 414 CRIME ANALYST II g 3,159.82 3,317.81 3,483.70 3,657.89 3,840.78 421 CRIME LAB AND EVIDENCE SUPV pn 4,629.83 4,861.32 5,104.39 5,359.61 5,627.59 417 CRIMINALISTICS TECHNICIAN I pn 2,889.00 3,033.45 3,185.12 3,344.38 3,511.60 418 CRIMINALISTICS TECHNICIAN II pn 3,745.60 3,932.88 4,129.52 4,336.00 4,552.80 331 CUSTOMER SERVICE CLERK g 1,581.36 1,660.43 1,743.45 1,830.62 1,922.15 389 CUSTOMER SERVICE TECHNICIAN g 2,303.07 2,418.22 2,539.13 2,666.09 2,799.39 439 DEPUTY BUILDING OFFICIAL m 4,089.11 4,293.57 4,508.25 4,733.66 4,970.34 373 DEPUTY CITY CLERK m 2,528.57 2,655.00 2,787.75 2,927.14 3,073.50 009 DEPUTY CITY MANAGER m 6,249.56 6,562.04 6,890.14 7,234.65 7,596.38 176 DEPUTY DIRECTOR OF PUBLIC WORKS/CITY ENGINEER (Org Leader Broadband - Non Safety) m 6,519.61 - - - 10,866.01
176 DEPUTY DIRECTOR - SOLID WASTE (Org Leader Broadband - Non Safety) m 6,519.61 - - - 10,866.01 178 DEPUTY FIRE CHIEF (Org Leader Broadband- Safety) psmf 6,769.78 - - - 11,137.38 424 DIGITAL FORENSICS EXAMINER I pn 4,040.37 4,242.39 4,454.51 4,677.24 4,911.10 442 DIGITAL FORENSICS EXAMINER II pn 4,454.51 4,677.24 4,911.10 5,156.66 5,414.49 146 DIR OF COMMUNITY DEVELOPMENT (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 146 DIR OF PUBLIC WORKS (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 146 DIR OF RECREATION & PARKS (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 146 DIRECTOR OF FINANCE (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 146 DIRECTOR OF UTILITIES (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 319 DISPATCHER I pn 2,815.11 2,955.87 3,103.66 3,258.84 3,421.78 320 DISPATCHER II pn 3,265.52 3,428.80 3,600.24 3,780.25 3,969.26 Bi-Weekly Rates
Monthly Salary
Full - Time Classifications

Page 1 of 4 ends

Attachment B
City of Santa Maria
Comprehensive Schematic Pay Schedule Adopted 6-16-2026
Effective 6-27-2026
Grade Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H Bi-Weekly Rates
441 ELECTRICAL AND INSTRUMENTATION TECHNICIAN g 3,504.82 3,680.06 3,864.06 4,057.26 4,260.12 239 ELECTRICIAN I g 2,789.77 2,929.26 3,075.72 3,229.51 3,390.99 227 ELECTRICIAN II g 3,229.51 3,390.99 3,560.54 3,738.57 3,925.50 302 ENGINEER I g 3,213.18 3,373.84 3,542.53 3,719.66 3,905.64 303 ENGINEER II g 3,542.55 3,719.68 3,905.66 4,100.94 4,305.99 317 ENGINEER III g 3,905.69 4,100.97 4,306.02 4,521.32 4,747.39 231 ENGINEERING TECH II g 2,501.43 2,626.50 2,757.83 2,895.72 3,040.51 232 ENGINEERING TECH III g 2,775.70 2,914.49 3,060.21 3,213.22 3,373.88 228 EQUIPMENT MECHANIC I g 2,310.21 2,425.72 2,547.01 2,674.36 2,808.08 225 EQUIPMENT MECHANIC II g 2,489.64 2,614.12 2,744.83 2,882.07 3,026.17 190 EXECUTIVE ASSISTANT m 3,102.38 3,257.50 3,420.38 3,591.40 3,770.97 253 FACILITIES SUPERVISOR g 3,368.66 3,537.09 3,713.94 3,899.64 4,094.62 281 FIELD MECHANIC g 2,616.93 2,747.78 2,885.17 3,029.43 3,180.90 332 FINANCE CLERK I g 1,882.50 1,976.63 2,075.46 2,179.23 2,288.19 333 FINANCE CLERK II g 2,075.85 2,179.64 2,288.62 2,403.05 2,523.20 329 FINANCE LEAD CLERK g 2,283.48 2,397.65 2,517.53 2,643.41 2,775.58 449 FIRE BATTALION CHIEF psmf 6,300.85 6,615.89 6,946.68 7,294.01 7,658.71 450 FIRE CAPTAIN f 4,527.35 4,753.72 4,991.41 5,240.98 5,503.03 189 FIRE CHIEF (Corp Leader Broadband - Safety) psmf 8,735.19 - - - 13,102.79 451 FIRE ENGINEER f 3,939.66 4,136.64 4,343.47 4,560.64 4,788.67 452 FIRE FIGHTER f 3,448.47 3,620.89 3,801.93 3,992.03 4,191.63 453 FIRE FIGHTER IN TRAINING f 2,582.23 2,711.34 2,846.91 2,989.26 3,138.72 443 FIRE INSPECTOR I f 3,008.39 3,158.81 3,316.75 3,482.59 3,656.72 444 FIRE INSPECTOR II f 3,316.77 3,482.61 3,656.74 3,839.58 4,031.56 446 FIRE MARSHAL m 6,154.11 6,461.82 6,784.91 7,124.16 7,480.37 295 FIRE PREVENTION OFFICER I f 3,135.03 3,291.78 3,456.37 3,629.19 3,810.65 296 FIRE PREVENTION OFFICER II f 3,448.47 3,620.89 3,801.93 3,992.03 4,191.63 254 FLEET SERVICES SUPERVISOR g 3,537.12 3,713.98 3,899.68 4,094.66 4,299.39 182 GIS ANALYST g 3,788.79 3,978.23 4,177.14 4,386.00 4,605.30 299 GIS MANAGER m 3,916.84 4,112.68 4,318.31 4,534.23 4,760.94 192 GIS TECHNICIAN I g 2,952.08 3,099.68 3,254.66 3,417.39 3,588.26 193 GIS TECHNICIAN II g 3,254.65 3,417.38 3,588.25 3,767.66 3,956.04 440 GRAPHICS TECHNICIAN g 2,264.17 2,377.38 2,496.25 2,621.06 2,752.11 372 GRANTS SPECIALIST I g 2,577.56 2,706.44 2,841.76 2,983.85 3,133.04 378 GRANTS SPECIALIST II g 2,841.78 2,983.87 3,133.06 3,289.71 3,454.20 209 GROUNDSKEEPER g 1,747.19 1,834.55 1,926.28 2,022.59 2,123.72 400 HEAVY EQUIPMENT MECHANIC g 2,827.18 2,968.54 3,116.97 3,272.82 3,436.46 401 HOUSING & COMMUNITY SERVICE TECHNICIAN g 2,505.98 2,631.28 2,762.84 2,900.98 3,046.03 423 INVESTIGATIVE SPECIALIST pn 2,801.49 2,941.56 3,088.64 3,243.07 3,405.22 426 INVESTIGATIVE SPECIALIST I pn 2,801.49 2,941.56 3,088.64 3,243.07 3,405.22 427 INVESTIGATIVE SPECIALIST II pn 3,088.65 3,243.08 3,405.23 3,575.49 3,754.26 286 LABORATORY COORDINATOR g 3,110.89 3,266.43 3,429.75 3,601.24 3,781.30 275 LANDFILL HEAVY EQUIP LEAD OPR g 2,720.12 2,856.13 2,998.94 3,148.89 3,306.33 274 LANDFILL HEAVY EQUIP OPR g 2,467.17 2,590.53 2,720.06 2,856.06 2,998.86 276 LANDFILL HEAVY EQUIP OPR II g 2,590.53 2,720.06 2,856.06 2,998.86 3,148.80 415 LEAD ACCOUNT CLERK - SCALE HOUSE g 2,070.73 2,174.27 2,282.98 2,397.13 2,516.99 432 LEAD CUSTOMER SERVICE TECHNICIAN g 2,748.95 2,886.40 3,030.72 3,182.26 3,341.37 282 LEAD MECHANIC g 2,885.20 3,029.46 3,180.93 3,339.98 3,506.98 425 LEAD POLICE SERVICE TECHNICIAN pn 2,927.62 3,074.00 3,227.70 3,389.09 3,558.54 307 LEAD WASTEWATER OPERATOR g 3,244.92 3,407.17 3,577.53 3,756.41 3,944.23 308 LEAD WATER OPERATOR g 3,244.92 3,407.17 3,577.53 3,756.41 3,944.23 428 LEGAL OFFICE SPECIALIST - CONFIDENTIAL m 2,914.54 3,060.27 3,213.28 3,373.94 3,542.64 350 LIBRARIAN I g 2,610.57 2,741.10 2,878.16 3,022.07 3,173.17 248 LIBRARIAN II g 2,884.35 3,028.57 3,180.00 3,339.00 3,505.95 147 LIBRARIAN III m 4,480.11 4,704.12 4,939.33 5,186.30 5,445.62 352 LIBRARY ASSISTANT I g 2,029.25 2,130.71 2,237.25 2,349.11 2,466.57 354 LIBRARY ASSISTANT II g 2,237.54 2,349.42 2,466.89 2,590.23 2,719.74 351 LIBRARY CLERK g 1,976.70 2,075.54 2,179.32 2,288.29 2,402.70 146 LIBRARY DIRECTOR (Corp Leader Broadband - Non Safety) m 8,258.16 - - - 12,604.56 353 LIBRARY TECHNICIAN g 2,422.95 2,544.10 2,671.31 2,804.88 2,945.12 244 MAINTENANCE WORKER I g 2,009.99 2,110.49 2,216.01 2,326.81 2,443.15 240 MAINTENANCE WORKER II g 2,166.15 2,274.46 2,388.18 2,507.59 2,632.97 330 OFFICE ASSISTANT I g 1,701.70 1,786.79 1,876.13 1,969.94 2,068.44 328 OFFICE ASSISTANT II g 1,880.15 1,974.16 2,072.87 2,176.51 2,285.34 176 ORGANIZATIONAL / ENTERPRISE LEADER - NON SAFETY (Broadband) m 6,519.61 - - - 10,866.01 177 ORGANIZATIONAL / ENTERPRISE LEADER - SAFETY (Broadband) psm 6,769.78 - - - 11,137.38 382 OUTREACH COORDINATOR g 2,264.17 2,377.38 2,496.25 2,621.06 2,752.11 183 PARK SERVICES OFFICER g 2,167.65 2,276.03 2,389.83 2,509.32 2,634.79 238 PARK SERVICES OFFICER II g 2,630.23 2,761.74 2,899.83 3,044.82 3,197.06 283 PARK SERVICES OFFICER III g 3,066.01 3,219.31 3,380.28 3,549.29 3,726.75 268 PARKS & FOREST SUPERVISOR g 3,340.50 3,507.53 3,682.91 3,867.06 4,060.41 430 PEG PRODUCTION MANAGER m 3,128.45 3,284.87 3,449.11 3,621.57 3,802.65 278 PLAN CHECK ENGINEER m 4,961.19 5,209.25 5,469.71 5,743.20 6,030.36 124 PLANNING DIVISION MANAGER m 6,287.93 6,602.33 6,932.45 7,279.07 7,643.02

Page 2 of 4 ends

City of Santa Maria
Comprehensive Schematic Pay Schedule Adopted 6-16-2026
Effective 6-27-2026
Grade Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H Bi-Weekly Rates
216 PLANNING TECHNICIAN g 2,286.82 2,401.16 2,521.22 2,647.28 2,779.64 297 PLANS EXAMINER g 3,056.10 3,208.91 3,369.36 3,537.83 3,714.72 422 POLICE CORPORAL p 4,064.51 4,267.74 4,481.13 4,705.19 4,940.45 177 POLICE DIVISION COMMANDER (Org Leader Broadband - Safety) psmp 6,769.78 - - - 11,137.38 416 POLICE LIEUTENANT pmm 6,312.86 6,628.50 6,959.93 7,307.93 7,673.33 413 POLICE OFFICER p 3,771.48 3,960.05 4,158.05 4,365.95 4,584.25 355 POLICE RECORDS SUPERVISOR g 2,820.25 2,961.26 3,109.32 3,264.79 3,428.03 327 POLICE RECORDS TECH-DETECTIVES g 2,315.25 2,431.01 2,552.56 2,680.19 2,814.20 325 POLICE RECORDS TECHNICIAN I g 2,143.88 2,251.07 2,363.62 2,481.80 2,605.89 326 POLICE RECORDS TECHNICIAN II g 2,315.25 2,431.01 2,552.56 2,680.19 2,814.20 410 POLICE SERGEANT pmm 5,096.19 5,351.00 5,618.55 5,899.48 6,194.45 256 POLICE SERVICES TECHNICIAN pn 2,655.44 2,788.21 2,927.62 3,074.00 3,227.70 390 POLICE TRAINEE pn 3,164.70 3,322.94 3,489.09 3,663.54 3,846.72 293 PRINCIPAL CIVIL ENGINEER m 5,534.48 5,811.20 6,101.76 6,406.85 6,727.19 127 PRINCIPAL PLANNER m 4,936.40 5,183.22 5,442.38 5,714.50 6,000.23 437 PROGRAM LEADER m 4,330.70 4,525.58 4,729.24 4,942.06 5,164.45 5,396.85 5,639.71 5,893.50 362 PROPERTY-EVIDENCE CLERK g 2,501.80 2,626.89 2,758.23 2,896.14 3,040.95 241 PUBLIC WORKS INSPECTOR g 2,552.46 2,680.08 2,814.08 2,954.78 3,102.52 135 PUBLIC WORKS OPERATIONS MGR m 5,111.39 5,366.96 5,635.31 5,917.08 6,212.93 169 PUBLIC WORKS TECHNICIAN I g 2,264.17 2,377.38 2,496.25 2,621.06 2,752.11 170 PUBLIC WORKS TECHNICIAN II g 2,505.98 2,631.28 2,762.84 2,900.98 3,046.03 257 RECREATION COORDINATOR g 2,615.79 2,746.58 2,883.91 3,028.11 3,179.52 285 RECREATION SUPERVISOR g 3,027.35 3,178.72 3,337.66 3,504.54 3,679.77 259 RECREATION TECHNICIAN g 2,264.17 2,377.38 2,496.25 2,621.06 2,752.11 316 REGULATORY COMPLIANCE MANAGER m 5,111.39 5,366.96 5,635.31 5,917.08 6,212.93 252 REGULATORY COMPLIANCE SPECIALIST I g 2,541.68 2,668.76 2,802.20 2,942.31 3,089.43 314 REGULATORY COMPLIANCE SPECIALIST II g 2,802.20 2,942.31 3,089.43 3,243.90 3,406.10 431 REGULATORY COMPLIANCE SUPERVISOR g 3,212.58 3,373.21 3,541.87 3,718.96 3,904.91 312 SECRETARY g 2,152.89 2,260.53 2,373.56 2,492.24 2,616.85 313 SECRETARY TO THE CITY MANAGER m 2,823.18 2,964.34 3,112.56 3,268.19 3,431.60 176 SENIOR ASSISTANT CITY ATTORNEY (Org Leader Broadband - Non Safety) m 6,519.61 - - - 10,866.01 349 SENIOR BUILDING PERMIT TECH g 2,674.53 2,808.26 2,948.67 3,096.10 3,250.91 292 SENIOR CIVIL ENGINEER g 4,277.68 4,491.56 4,716.14 4,951.95 5,199.55 267 SENIOR CREW LEADER-MAINT SPEC g 2,681.38 2,815.45 2,956.22 3,104.03 3,259.23 321 SENIOR DISPATCHER pn 3,601.85 3,781.94 3,971.04 4,169.59 4,378.07 237 SENIOR PARK SERVICES OFFICER g 3,587.70 3,767.09 3,955.44 4,153.21 4,360.87 205 SENIOR PLANNER g 4,164.28 4,372.49 4,591.11 4,820.67 5,061.70 201 SENIOR PLANS EXAMINER g 3,542.55 3,719.68 3,905.66 4,100.94 4,305.99 337 SENIOR POLICE RECORDS TECH g 2,537.97 2,664.87 2,798.11 2,938.02 3,084.92 163 SENIOR PROJECT MANAGER m 4,696.07 4,930.87 5,177.41 5,436.28 5,708.09 210 SENIOR SYSTEMS ANALYST m 5,052.85 5,305.49 5,570.76 5,849.30 6,141.77 304 SENIOR TRAFFIC SIGNAL TECH g 2,998.81 3,148.75 3,306.19 3,471.50 3,645.08 184 SHAREPOINT DEVELOPER g 3,865.00 4,058.25 4,261.16 4,474.22 4,697.93 195 SOLID WASTE COLLECTIONS SUPV g 3,500.14 3,675.15 3,858.91 4,051.86 4,254.45 196 SOLID WASTE EQUIP CREW LDR g 2,403.48 2,523.65 2,649.83 2,782.32 2,921.44 246 SOLID WASTE EQUIP LEAD OPR g 2,658.08 2,790.98 2,930.53 3,077.06 3,230.91 222 SOLID WASTE EQUIPMENT OPR I g 2,244.12 2,356.33 2,474.15 2,597.86 2,727.75 224 SOLID WASTE EQUIPMENT OPR II g 2,289.00 2,403.45 2,523.62 2,649.80 2,782.29 197 SOLID WASTE LANDFILL SUPV g 3,500.14 3,675.15 3,858.91 4,051.86 4,254.45 154 SOLID WASTE MANAGER m 4,848.60 5,091.03 5,345.58 5,612.86 5,893.50 380 SPECIAL DISTRICTS COORDINATOR g 3,340.50 3,507.53 3,682.91 3,867.06 4,060.41 411 SPECIAL DISTRICTS PLANNING TECHNICIAN g 2,264.17 2,377.38 2,496.25 2,621.06 2,752.11 358 SPECIAL DISTRICTS SUPERVISOR g 3,726.44 3,912.76 4,108.40 4,313.82 4,529.51 381 SPECIAL DISTRICTS TECHNICIAN g 2,577.04 2,705.89 2,841.18 2,983.24 3,132.40 271 STREET MAINT SUPERVISOR g 3,368.66 3,537.09 3,713.94 3,899.64 4,094.62 214 SYSTEMS ANALYST I g 3,504.82 3,680.06 3,864.06 4,057.26 4,260.12 215 SYSTEMS ANALYST II g 3,865.00 4,058.25 4,261.16 4,474.22 4,697.93 290 TRAFFIC SIGNAL TECHNICIAN g 2,789.60 2,929.08 3,075.53 3,229.31 3,390.78 202 TRANSIT ASSISTANT g 1,747.19 1,834.55 1,926.28 2,022.59 2,123.72 229 TRANSIT COORDINATOR g 2,456.60 2,579.43 2,708.40 2,843.82 2,986.01 185 TRANSIT PLANNER g 3,176.23 3,335.04 3,501.79 3,676.88 3,860.72 288 TRANSIT SERVICES MANAGER m 5,111.39 5,366.96 5,635.31 5,917.08 6,212.93 383 UTILITIES ACCOUNTING TECH I g 2,230.37 2,341.89 2,458.98 2,581.93 2,711.03 384 UTILITIES ACCOUNTING TECH II g 2,459.52 2,582.50 2,711.63 2,847.21 2,989.57 385 UTILITIES ACCOUNTING TECH III g 2,582.49 2,711.61 2,847.19 2,989.55 3,139.03 429 UTILITIES OFFICE SPECIALIST g 1,974.16 2,072.87 2,176.51 2,285.34 2,399.61 387 UTILITIES OUTREACH SPECIALIST g 2,270.26 2,383.77 2,502.96 2,628.11 2,759.52 207 UTILITIES TECHNOLOGY ANALYST g 3,504.82 3,680.06 3,864.06 4,057.26 4,260.12 334 UTILITY BILLING LEAD CLERK g 2,283.48 2,397.65 2,517.53 2,643.41 2,775.58 223 UTILITY BILLING SUPERVISOR g 2,397.63 2,517.51 2,643.39 2,775.56 2,914.34 306 WASTEWATER OPERATOR g 2,748.95 2,886.40 3,030.72 3,182.26 3,341.37 405 WASTEWATER OPERATOR I g 2,441.33 2,563.40 2,691.57 2,826.15 2,967.46 406 WASTEWATER OPERATOR II g 2,748.95 2,886.40 3,030.72 3,182.26 3,341.37 407 WASTEWATER OPERATOR III g 3,030.73 3,182.27 3,341.38 3,508.45 3,683.87

Page 3 of 4 ends

City of Santa Maria
Comprehensive Schematic Pay Schedule Adopted 6-16-2026
Effective 6-27-2026
Grade Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H Bi-Weekly Rates
305 WASTEWATER OPERATOR TRAINEE g 2,441.33 2,563.40 2,691.57 2,826.15 2,967.46 198 WASTEWATER SUPERVISOR g 4,021.94 4,223.04 4,434.19 4,655.90 4,888.70 247 WATER CONSERVATION SPECIALIST g 2,721.65 2,857.73 3,000.62 3,150.65 3,308.18 309 WATER OPERATOR g 2,748.95 2,886.40 3,030.72 3,182.26 3,341.37 402 WATER OPERATOR I g 2,441.33 2,563.40 2,691.57 2,826.15 2,967.46 403 WATER OPERATOR II g 2,748.95 2,886.40 3,030.72 3,182.26 3,341.37 404 WATER OPERATOR III g 3,030.73 3,182.27 3,341.38 3,508.45 3,683.87 310 WATER OPERATOR TRAINEE g 2,441.33 2,563.40 2,691.57 2,826.15 2,967.46 258 WATER RESOURCES LEAD OPERATOR g 3,297.27 3,462.13 3,635.24 3,817.00 4,007.85 134 WATER RESOURCES MANAGER m 5,534.48 5,811.20 6,101.76 6,406.85 6,727.19 263 WATER RESOURCES OPERATOR g 2,990.68 3,140.21 3,297.22 3,462.08 3,635.18 199 WATER SUPERVISOR g 4,021.94 4,223.04 4,434.19 4,655.90 4,888.70 243 WATER SYSTEM OPERATOR I g 2,381.85 2,500.94 2,625.99 2,757.29 2,895.15 249 WATER SYSTEM OPERATOR II g 2,681.82 2,815.91 2,956.71 3,104.55 3,259.78

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City of Santa Maria
Comprehensive Schematic Pay Schedule
Hourly Rates (Part-Time - Limited Service)
Adopted 6-16-2026
Effective 6-27-2026
Grade Description Assoc. Step A Step B Step C Step D Step E za ACCOUNT CLERK AIDE z 20.96 22.01 23.11 24.27 25.48
ac ADMINISTRATIVE AIDE I e 21.07 22.12 23.23 - -
ab ADMINISTRATIVE AIDE II e 24.39 25.62 26.89 - -
aa ADMINISTRATIVE AIDE III e 28.33 29.75 31.24 - -
ae AQUATICS SAFETY & EDUCATIONAL SPEC e 17.90 18.80 19.74 - - al ASSIST LIBRARY TECHNICIAN e 16.90 17.75 18.63 - -
as ASSISTANT CLERK - OFFICE e 16.90 17.75 18.63 - -
ap ASST PUBLIC WORKS INSPECTOR e 29.06 30.51 32.04 - -
cd CERTIFIED DISPATCH AIDE e 31.44 33.01 34.66
zc CLERK II z 22.61 23.74 24.93 26.18 27.49
zx COMMUNITY OUTREACH COORDINATOR z 25.57 26.85 28.19 29.60 31.08 cl CONSULTANT I e 39.92 41.92 44.02 - -
cm CONSULTANT II e 46.23 48.53 50.96 - -
cn CONSULTANT III e 53.85 56.54 59.36 - -
co CONSULTANT IV e 63.04 68.29 73.54 - -
cp CUSTOMER SERVICE PHONE OPER* e 16.90 17.75 18.63 - - ya EMERGENCY SERVICES SPECIALIST z 35.08 36.83 38.67 40.60 42.63 ec EXECUTIVE CONSULTANT e 112.00 117.60 123.48
zp FACILITY SPECIALIST II z 21.55 22.63 23.76 24.95 26.20 zq FACILITY SPECIALIST III z 23.17 24.33 25.55 26.83 28.17 lo GENERAL LABORER e 16.90 17.75 18.63 - -
d1 INTERIM DIRECTOR I e 63.04 68.29 73.54 - -
d2 INTERIM DIRECTOR II e 78.80 84.05 89.30 - -
d3 INTERIM DIRECTOR III e 94.55 99.81 105.06 - -
ci INTERN - GENERAL e 16.90 17.75 18.63 - -
ei INTERN - PROFESSION e 16.90 17.75 18.63 - -
i1 INVESTIGATIVE OFFICER I e 73.54 0.00 0.00 - -
i2 INVESTIGATIVE OFFICER II e 105.06 0.00 0.00 - -
zf LABORER III z 19.02 19.97 20.97 22.02 23.12
lp LIBRARY PAGE e 16.90 17.75 18.63 - -
zg LIBRARY TECHNICAL ASSISTANT z 26.89 28.23 29.64 31.12 32.68 lg LIFEGUARD e 16.90 17.75 18.63 - -
mt MAINTENANCE TECHNICIAN e 16.90 17.75 18.63 - -
ma MULTIMEDIA ASSISTANT e 16.90 17.75 18.63 - -
ps PARK SERVICES AIDE e 16.90 17.75 18.63 - -
zy PARK SERVICES COORDINATOR z 44.60 46.83 49.17 51.63 54.21 pc POLICE CADET e 16.90 17.75 18.63 - -
zi POLICE RECORDS CLERK z 19.93 20.93 21.98 23.08 24.23 po PROVISIONAL OFFICER e 39.91 41.91 44.01 46.21 48.52
ra RECREATION ACTIVITY SPECIALIST z 19.22 20.18 21.19 22.25 23.36 re RECREATION LEADER II e 16.90 17.75 18.63 - -
rc REGULATORY COMPLIANCE CLERK e 16.90 17.75 18.63 - -
ao RESERVE POLICE OFFICER LEVEL 1 e 21.01 - - - -
bo RESERVE POLICE OFFICER LEVEL 2 e 17.86 - - - -
ze SECURITY GUARD z 21.85 22.94 24.09 25.29 26.56
zz SENIOR LIFEGUARD z 21.22 22.28 23.39 24.56 25.79
sl SKILLED LABORER e 22.02 23.12 24.28 - -
sa STAFF AIDE - FACILITIES e 16.90 17.75 18.63 - -
zt STAFF ASSISTANT z 18.48 19.40 20.37 21.39 22.46
si SWIM INSTRUCTOR e 17.90 18.80 19.74 - -
sc SWIM POOL CLERK e 16.90 17.75 18.63 - -
t1 TECHNICAL AIDE I e 16.90 17.75 18.63 - -
t2 TECHNICAL AIDE II e 16.90 17.75 18.63 - -
t3 TECHNICAL AIDE III e 18.20 19.11 20.06 - -
tp TEMPORARY PLANNER e 34.84 36.59 38.41 - -
zr TRANSIT TECHNICIAN z 21.51 22.59 23.72 24.91 26.16
Hourly Rates

Page 1 of 1 ends

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Graciela Reynoso, Chief Human Resources Officer
DATE: June 16, 2026
SUBJECT: Adoption of Resolution Approving Amendment No. 2 to Letter Agreement with Aleshire and Wynder, LLP
Description:

The City Council will consider adopting a Resolution approving an amendment to the Letter Agreement with Aleshire and Wynder, LLP.

RECOMMENDATION:

1. Adopt a Resolution approving Amendment No. 2 to the Letter Agreement with Aleshire and Wynder, LLP. for continued legal employment and labor services and an increase of $100,000 for a total amount of $450,000; and

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

BACKGROUND:

The City utilizes Aleshire and Wynder, LLP for legal assistance related to labor and employment services. This original letter agreement retained Aleshire and Wynder, LLP for assistance with employment matters, including employee rights and responsibilities, working conditions, wages, and the City’s various labor unions to include bargaining groups.

DISCUSSION:

Originally the City Attorney’s Office engaged Aleshire and Wynder, LLP via a letter agreement signed March 13, 2025, and amended the agreement (Amendment 1) in December of 2025. An increase in the agreement amount is requested to meet the City’s need for legal consultation
Alternative(s)
City Council could decide not to approve the Amendment which would require City staff to find an alternative method for Human Resources assistance. 2 Fiscal Considerations
The cost of the amendment is set for $100,000. Funding for this amendment has been allocated in the approved budget for 2025–2026. Funding for future years will be requested during subsequent budget cycles.

ATTACHMENT(S)
A. Resolution
B. Amendment
Attachment A

Page 1 of 2 ends

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA
APPROVING AMENDMENT NO. 2 TO THE LETTER AGREEMENT
WITH ALESHIRE AND WYNDER, LLP. FOR

CONTINUED LEGAL EMPLOYMENT AND

LABOR SERVICES AND AN INCREASE IN THE
AMOUNT OF $100,000 FOR A TOTAL AMOUNT OF $450,000
WHEREAS, the City and Aleshire and Wynder, LLP entered into a Letter Agreement on March 13, 2025, and amended on December 2, 2025; and WHEREAS, the City and Aleshire and Wynder, LLP desire to amend the Letter Agreement to a not to exceed total amount of $450,000; and WHEREAS, the City has spent approximately $350,000 under the current Letter Agreement;
WHEREAS, funding for this service has been included in the current fiscal year’s budget.

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

SECTION 1. Approved amendment to the Letter Agreement with Aleshire and Wynder, LLP for labor and employment legal representation services; and SECTION 2. Approved an increase of $100,000 for a total amount of $450,000; and
SECTION 3. Authorized the City Manager, or designee, to execute agreement; and
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.

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 16th day of June 2026.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Head
_______________________________
City Manager
Attachment B
AMENDMENT NO. 2 TO AGREEMENT
This Amendment No. 2 to the Agreement for Aleshire & Wynder LLP dated March 13, 2025, and amended on December 2, 2025, is made on June 16, 2026 by and between Aleshire & Wynder LLP (“Attorney Firm”), and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

1. The City desires to extend the term of the Agreement in accordance with Section 2 of the Agreement.

NOW, THEREFORE, IT IS AGREED:

1. The not-to-exceed amount of Agreement is increased to $450,000

2. All other terms of the Agreement remain unchanged.

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

Attorney Firm CITY OF SANTA MARIA
____________________________
By: Colin J. Tanner, Esq.
___________________________
By: DAVID W. ROWLANDS
City Manager
ATTEST:
___________________________
Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
______________________
City Attorney
______________________
Risk Manager

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Director of Community Development
DATE: June 16, 2026
SUBJECT: Adoption of a Resolution Approving Amendment to Sales and Disposition Agreement (SDA), Estoppel, Amendment, and Partial Assignment of SDA, Subordination Agreement, and Parking Agreement with The Vernon Group
Description:

The City Council will consider adopting a Resolution approving various agreements with Vernon Property Group, LLC in order to effectuate the closing of the Lot 2 property and facilitate development of the Perlman Apartments.

RECOMMENDATION:

1. Approve the Estoppel, Amendment, and Partial Assignment of the SDA to Danco Group; and

2. Approve the Subordination Agreement by and among the City; Citibank, N.A.; and Santa Maria North Broadway LP, a related party of Danco Group; and

3. Authorize the City Manager to negotiate, finalize, and execute a Parking Agreement with Vernon Property Group, LLC in substantially the form submitted hereto; and

4. Authorize the City Manager to negotiate, finalize, and execute an amendment to the SDA in a form approved by the City Attorney based on the terms outlined in this staff report; and

5. Authorize the City Manager to execute any related documents.

BACKGROUND:

Since the adoption of the Downtown Specific Plan in 2015, the City of Santa Maria has proactively sought the revitalization of the downtown area. Today, those efforts are bearing fruit. Construction is well underway on two key redevelopment projects: the 2 transformation of the former Mervyn’s building to become the Heritage Walk Lofts, consisting of 102 market-rate loft units by Vernon Property Group, LLC (“Vernon”), and the redevelopment of the former Sears building into an El Super grocery store with additional retail space by the Charles Company.

On September 17, 2024, the City entered into an SDA with Vernon for the purchase and development of four parcels of surplus lands concentrated near Broadway and Main Street. The first of these development projects to be constructed will be the Perlman Apartments on Lot 2, which consists of 150 affordable units for families. Following this will be the Alvin Newton Apartments on Lot 3, a mixed-use project featuring 82 market-rate units with a retail component on the ground floor. Both projects are nearing completion of the permitting process.

DISCUSSION:

As the parcels contemplated for development are currently owned by the City, California’s Surplus Land Act requires that a minimum of 25% of all units ultimately built on these parcels provide deed-restricted affordable housing. While unit counts are still being finalized for future phases of the revitalization projects on Lots 1 and 4, the Perlman Apartments are expected to provide all of the required deed-restricted housing.

Vernon is a market-rate developer. As such, they have partnered with the Danco Group (“Danco”) for Lot 2’s affordable housing development. Danco is a fully integrated affordable housing firm founded in 1986, with nearly four decades of experience in real estate development, construction, and property management. Operating primarily throughout California and Arizona, Danco has successfully placed 1,874 units in service and has an additional 6,859 units in the pipeline, demonstrating a proven track record of delivering quality affordable housing at scale. Through its development arm, Danco Communities, the firm specializes in leveraging Low Income Housing Tax Credits (LIHTC) and government funding sources to create rental housing serving households earning between 30% and 80% of Area Median Income (AMI), including housing for seniors, veterans, and low-income families. Danco's vertically integrated model – encompassing development, general contracting, and ongoing property management – ensures accountability and quality throughout the full project lifecycle.

Vernon will remain the master developer for the total SDA, partnering 50/50 on the construction component of the Perlman Apartments project. This ensures that the City will enjoy a guaranty of performance not only from Vernon, but also from Danco for Lot 2.

The proposed Estoppel, Amendment, and Partial Assignment of SDA will allow Vernon to assign a portion of their rights and responsibilities under the SDA to Danco. Danco will assume ownership of the project; upon completion, they will also assume property management responsibilities. To date, Danco has been an involved partner alongside Vernon throughout the design process for the Perlman, and has led the successful effort to secure LIHTC funding to make construction possible.

The proposed Subordination Agreement is a standard real estate development agreement wherein a given stakeholder in the property – in this case, the City – agrees 3 that its claim to the parcel will be subordinate to the claim of a larger lender in the event of default. This agreement will allow the primary lender for the project, Citibank, to provide the necessary funding for development of the project.

Additionally, a Parking Agreement is proposed to provide Perlman Apartments tenants with access to 55 spaces within the City-owned parking structure located on Main Street east of Broadway. Under the project’s Downtown Permit, these spaces are required as a condition of approval in addition to the 78 on-site spaces. This will aid in resolving parking needs downtown, maximize the use of the underutilized parking structure, and continue to ensure that the City’s obligations under the existing parking agreement for Town Center are met.

Finally, an additional amendment to the SDA is proposed to facilitate construction of the project while also providing new amenities to existing and future residents. Lot 2 will be expanded to include approximately 1,600 square feet of adjacent space for underground drainage facilities, along with nominal additional square footage connecting to the project site to ensure seamless maintenance of the surface area. This will allow for the project to maintain its density and incorporate the needed drainage infrastructure. The surface will remain accessible to the public as part of the adjacent inline park, and will be maintained by Danco.

In return, Danco and Vernon will construct a dog park within the existing inline park, at an estimated value to the City of $280,000. Additionally, they will forego the various fee waivers and reductions outlined in the SDA for Lot 2, consisting of $412,865 in impact fees and $201,535 in permitting fees. In all, the value to the City is approximately $894,400.

Alternative
The City Council may decide not to authorize any or all of the proposed agreements. A denial would create significant delays in construction, possible loss of LIHTC funding, and prevent compliance efforts with Surplus Land Act requirements for disposition of the Cityowned parcels, thus creating a roadblock for redevelopment efforts on the remaining lots.

Additionally, a denial would cause the City to forego the dog park and reinstate the fee waivers and discounts previously agreed upon, thus foregoing a total value of approximately $894,400 for the City.

Fiscal Considerations
Approximately $894,400 in total value to the City, including installation of a dog park and foregoing previously agreed upon fee waivers and discounts.

Impact on the Community
The Perlman Apartments will provide 150 units of affordable housing to working families in our community. These changes to the SDA will allow for an experienced affordable housing developer to co-develop the project in conjunction with Vernon and leverage its extensive experience to manage the property post-construction. 4 Approval will also facilitate construction of a new dog park for residents to enjoy and generate approximately $614,400 in City revenue, for a total value of $894,400.

Attachment(s)
A. Resolution
B. Estoppel, Amendment, and Partial Assignment of Sales and Disposition Agreement C. Subordination Agreement
D. Parking Agreement
Attachment A

Page 1 of 3 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO NEGOTIATE, FINALIZE ,

AND EXECUTE AN AMENDMENT TO SALES AND DISPOSITION AGREEMENT (SDA), ESTOPPEL, AMENDMENT, AND PARTIAL ASSIGNMENT OF SDA,

SUBORDINATION AGREEMENT, AND PARKING AGREEMENT WITH VERNON

PROPERTY GROUP, LLC AND EXECUTE ANY RELATED DOCUMENTS
WHEREAS, the City of Santa Maria entered into a Sales and Disposition Agreement (SDA) with Vernon Property Group, LLC (“Vernon”) on September 17, 2024, for the purchase and development of four parcels of surplus lands concentrated near Broadway and Main Street in the downtown area; and
WHEREAS, the first development project to be constructed under the SDA will be the Perlman Apartments on Lot 2, consisting of 150 affordable units for families, in furtherance of the City’s obligations under California’s Surplus Land Act; and WHEREAS, Vernon has partnered with Danco Group (“Danco”), a fully integrated affordable housing firm, for the development of the Perlman Apartments on Lot 2, with Vernon remaining the master developer for the total SDA and partnering 50/50 on the construction component; and
WHEREAS, an Estoppel, Amendment, and Partial Assignment of SDA is proposed to allow Vernon to assign a portion of their rights and responsibilities under the SDA to Danco, who will assume ownership of the project and, upon completion, assume property management responsibilities; and
WHEREAS, a Subordination Agreement by and among the City, Citibank, N.A., and Santa Maria North Broadway LP (a related party of Danco Group) is required to allow the primary lender, Citibank, to provide the necessary funding for development of the Perlman Apartments; and
WHEREAS, a Parking Agreement is proposed to provide Perlman Apartments tenants with access to 55 spaces within the City-owned parking structure located on Main Street east of Broadway, as required under the project’s Downtown Permit as a condition of approval in addition to the 78 on-site spaces; and
WHEREAS, an amendment to the SDA is proposed to expand Lot 2 to include approximately 1,600 square feet of adjacent space for underground drainage facilities and nominal additional square footage for site connectivity, in exchange for which Danco and Vernon will construct a dog park within the existing inline park at an estimated value to the City of $280,000 and will forego fee waivers and reductions outlined in the SDA for Lot 2 consisting of $412,865 in impact fees and $201,535 in permitting fees, for a total value to the City of approximately $894,400; and
Attachment A

Page 2 of 3 ends

WHEREAS, the City of Santa Maria determined that the proposed action is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.

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

SECTION 1. The City Manager is hereby authorized to execute the Estoppel, Amendment, and Partial Assignment of the Sales and Disposition Agreement (SDA) with Vernon Property Group, LLC and Danco Group; and
SECTION 2. The City Manager is hereby authorized to finalize and execute the Subordination Agreement by and among the City of Santa Maria, Citibank, N.A., and Santa Maria North Broadway LP; and
SECTION 3. The City Manager is hereby authorized to negotiate, finalize, and execute a Parking Agreement with Vernon Property Group, LLC providing Perlman Apartments tenants access to 55 spaces within the City-owned parking structure located on Main Street east of Broadway, in substantially the form submitted hereto; and SECTION 4. The City Manager is hereby authorized to negotiate, finalize, and execute an amendment to the SDA with Vernon Property Group, LLC in a form approved by the City Attorney, based on the terms outlined in the Council Agenda Report, including the expansion of Lot 2 for underground drainage facilities and related surface area, in exchange for construction of a dog park and foregoing previously agreed-upon fee waivers and reductions for Lot 2; and
SECTION 5. The City Manager is hereby authorized to execute any related documents necessary to effectuate the closing of Lot 2 and facilitate development of the Perlman Apartments and implementation of the Sales and Disposition Agreement dated September 17, 2024, with Vernon Property Group, LLC; and SECTION 6. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

Attachment A

Page 3 of 3 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 16th day of June 2026.

ATTEST:

ESTOPPEL, AMENDMENT, AND PARTIAL ASSIGNMENT OF SALES AND

DISPOSITION AGREEMENT
This ESTOPPEL, AMENDMENT, AND PARTIAL ASSIGNMENT OF
SALES AND DISPOSITION AGREEMENT (this “Agreement”) is entered into as of June 1, 2026, by and between VERNON PROPERTY GROUP, LLC, a California limited liability (the “Assignor”), SANTA MARIA NORTH BROADWAY, LP, a California limited partnership (the “Assignee”), and the CITY OF SANTA MARIA, a California municipal corporation (the “City”).

RECITALS
A. WHEREAS, Assignor and City entered into that certain Sales and Disposition Agreement, dated September 17, 2024 (“SDA”), providing for the purchase of certain City-owned land for the development of a multi-phase development project (the “Downtown Project”) on several parcels of land located in downtown Santa Maria (the “Downtown Project Property”).

All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the SDA.

B. WHEREAS, Assignor and Danco Communities (an affiliate of the Assignee) have entered into that certain Joint Development Agreement pursuant to which Assignor has agreed to sell Lot 2 to Assignee immediately upon its acquisition from the City, and Assignee has agreed to purchase Lot 2 from Assignor and develop the Lot 2 Project on Lot 2 pursuant to the terms of the SDA.

C. WHEREAS, Assignor and the City wish to assign the right and obligation to develop, own, and operate the Lot 2 Project on Lot 2 to Assignee, Assignee wishes to assume such rights and obligations of Assignor under the SDA, and Assignee and Assignor which to make certain amendments to the SDA as partially assigned to the Assignee.

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

1. Assignment. Effective as of the date hereof, Assignor hereby assigns, transfers, and conveys all of its right, title, interest, and obligations under the SDA in connection with the development of only the Lot 2 Project to Assignee, and Assignor shall retain all rights and obligations in the SDA with respect to the remainder of the Downtown Project and the Downtown Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 Project Property. This assignment is not a novation. Assignor shall remain responsible for completion of the required development of Lot 2 in the event of a failure to perform by Assignee.

2. Acceptance. Assignee hereby accepts the foregoing assignment as of the date hereof, and assumes all of the right, title, interest, and obligations of the Assignor in the SDA in connection with the development of the Lot 2 Project only and agrees to perform all of the obligations of the Assignor under the SDA with respect thereto. Assignee acknowledges that the affordability component of Lot 2 is essential to the California Department of Housing and Community Development’s acceptance and approval of the project

3. City Acknowledgment and Consent. The City understands, acknowledges, and agrees that the close of escrow for Lot 2 will occur as a double-escrow whereby Lot 2 will be sold by the City to Assignor pursuant to the SDA, then immediately sold by Assignor to Assignee in accordance with that certain Purchase Option Agreement between Assignor and Assignee. The City hereby consents to such sale, and the assignment from Assignor to Assignee contemplated herein, and acknowledges that the “Developer” under the SDA with respect to Lot 2 shall be the Assignee.

4. Amendments. The SDA is amended by the following provisions solely as between Assignee and City and solely as to Lot 2.
(a) Clause (e) of Section 7.3.1 of the SDA is hereby amended and restated in its entirety to read as follows:
“(e) assignments creating security interests for the purpose of financing the acquisition of the City Property or the construction or permanent financing of the Downtown Project, as may be approved by the City, and subject to the requirements of Article VIII, or Transfers directly resulting from the foreclosure or, or granting of a deed in lieu of foreclosure of, such a security interest, or the first subsequent transfer thereafter (or assignments creating a security interest for the purpose of financing such first subsequent transfer);”
(b) Section 8.2 of the SDA is hereby amended and restated in its entirety to read as follows:
“8.2 Holder Not Obligated to Construct. Neither the holder of any mortgage or deed of trust authorized by this Agreement, nor any holder (or its designee) foreclosing upon its deed of trust, or accepting a deed in lieu thereof (a ‘Foreclosing Entity’), shall be obligated to complete construction of any portion of the Downtown Project or to guarantee such completion. Nothing in this Agreement shall be deemed to permit or authorize any such holder or Foreclosing Entity to devote the City Property or any portion thereof to any uses, or to construct Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 any improvements thereon, other than those uses, or improvements provided for or authorized by this Agreement.”
(c) The third sentence of Section 8.3 of the SDA is hereby amended and restated in its entirety to read as follows:
“Each such holder shall have the right, but not the obligation, at its option, to cure or remedy any such default or breach within the cure period provided to Developer, which cure period for such holder shall not commence until the cure period for Developer has expired without cure.”
(d) Section 8.4 of the SDA is hereby amended and restated in its entirety to read as follows:
“8.4 Failure of Holder to Complete Improvements. In any case where, six (6) months after the holder receives notice of default by Developer in completion of construction of any phase of the Downtown Project, such holder of record of any mortgage or deed of trust has not exercised its option to construct that portion of the Downtown Project, or having first exercised such option, has not proceeded diligently with such work, City shall be afforded those rights against such holder that it would otherwise have against Developer under this Agreement; provided, however, that if it is necessary for such holder to obtain possession of the Project in order to effect such cure, such six (6)-month period will be extended by the amount of time required for such holder to obtain possession, provided such holder commences foreclosure proceeding within such six (6)-month period and diligently prosecutes such proceeding thereafter. In addition, notwithstanding anything to the contrary contained herein, neither a Foreclosing Entity nor the first transferee thereafter shall be obligated to complete construction on the timeline provided for in Section 5.1(a); rather, such party and City shall agree upon a new completion date.” (e) The following is hereby added as new Section 8.9 of the SDA as assigned to the Assignee:
“Investor Cure Rights. RBC Community Investments, LLC, an Illinois limited liability company, and/or RBC Community Investments Manager II, Inc., a Delaware corporation, and their successors and/or assigns (collectively, the “Limited Partner”) or any other successor entity in such entity’s capacity as a limited partner of the Developer, shall have the right, but not the obligation, to cure any defaults hereunder on the same terms as Developer. Any default cure tendered by the Limited Partner shall be accepted or rejected as if tendered by the Developer.” Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 (f) Exhibit A-6: Developer’s Representation and Project Description – Lot 2 is hereby deleted in its entirety and replaced with Exhibit A-6, Amendment 1 hereto. (g) Exhibit B-2: Performance Schedule and Incentives is hereby deleted in its entirety and replaced with Exhibit B-2, Amendment 1 hereto. (h) Notwithstanding anything to the contrary contained in the SDA or in any other document relating to the Downtown Project, a default or Event of Developer Default under the SDA with respect to one Lot shall not constitute a default or Event of Developer Default with respect to any other Lot.

5. Estoppel. City declares and certifies that (i) the SDA is in full force and effect and has not been modified or amended except as set forth herein, (ii) to the best of City’s knowledge, no event of default exists under the SDA and no state of facts exists which, but for notice and/or passage of time, or both, would constitute an event of default under the SDA, and (iii) to the best of City’s knowledge, no action, suit or notice or threat of any action or suit exists that could prevent Assignee’s ability to construct and develop the Lot 2 Project on Lot 2 within the parameters and timeframe set forth the SDA and its exhibits.

6. Permitted Transfers. Transfers of Limited Partner interests, removal of general partners by the Limited Partner due to performance defaults, and/or the exercise of the purchase option by a general partner of Assignee in accordance with the Assignee’s Amended and Restated Partnership Agreement are expressly permitted by the City and will not require City consent.

7. Notices. Notices required to be given to Developer pursuant to Section 11.3 of the SDA shall also be delivered as follows:

If to Developer: Santa Maria North Broadway LP
5251 Ericson Way
Arcata, CA 95521
Attention: Chris Dart
With a copy to: RBC Community Investments, LLC
600 Superior Avenue, Suite 2300
Cleveland, Ohio 44114
Attention: President and General Counsel
And a copy to: Bocarsly Emden Cowan Esmail & Arndt LLP
633 West Fifth Street, Suite 5880
Los Angeles, CA 90071
Attention: Kyle Arndt

8. Original Agreement. Except as modified hereby, the SDA remains in full force and effect.

Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372

9. Counterparts. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors or assigns. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. This Agreement may be validly executed and delivered by facsimile, electronic mail and/or portable document format (collectively, “Electronic Copy”). Any signer who executes this document and transmits this document by Electronic Copy intends that the Electronic Copy of their signature is to be deemed an original signature for all purposes. Any such Electronic Copy printout and any complete photocopy of such Electronic Copy printout is deemed to be an original counterpart of this document.

10. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
[SIGNATURES ON FOLLOWING PAGE]
Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date stated above.

ASSIGNOR:

VERNON PROPERTY GROUP, LLC,
a California limited liability company
By: _______________________
Name: ____________________
Title: _____________________
ASSIGNEE:

Daniel Johnson
President
By: Community Revitalization and Development
Corporation, a California nonprofit public
benefit corporation, its Managing General Partner
By:

David Rutledge
President
Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 CITY:

CITY OF SANTA MARIA, a
Municipal Corporation
By:

Name:_______________________________
Title: _______________________________
APPROVED AS TO FORM:
____________________________
City Attorney
Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 Exhibit A-6
Developers Representation and Project Description - Lot 2 [Changes shown for review purposes.]
Lot 2 - Perlman Apartments
Project Shall Provide:

Number of Units and Square Footage
• Up to 160 apartments
Architecture/Massing
• Six-story building with five floors of apartments over raised podium parking and lobby Plazas/Gathering spaces
• Pedestrian connections along the north and east frontages of the proposed building, from Central Plaza park to the intersection of Main and Broadway • Minimum 5,000 sq. ft. in landscaped courtyards for tenants • Vernon Group will contribute to and participate in future Downtown Property and Business Improvement District or other district for maintaining enhancements and improvements that benefit the Perlman Apartments project.

Parking Concession
• 78 on-site parking spaces
• City to provide remaining parking spaces in Santa Maria Town Center at a rate consistent with the Downtown Specific Plan minus the 78 on-site spaces • Vernon Group will engage in negotiations and be party to a new negotiated Reciprocal Easement and Access Agreement (REA) for parking and access that will govern Town Center
• Use of parking at Town Center remains non-exclusive unless otherwise established through a new REA with all relevant parties
Affordability
(Consistent with the City's authority and privileges in the Reciprocal Easement Agreement (REA) for Town Center)
• Overall affordability of 60 percent of Area Median Income (AMI), and may include housing units at 80, 60, 50 and 30 percent AMI
Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 • All residential units, except for the manager's unit, shall be income-restricted by deed for a minimum of 55 years
In order to facilitate the complexities and nuances associated with affordable housing finance, the City Manager is hereby empowered to authorize and approve a separate but related development agreement. This authorization is contingent upon the determination by both the developers and affordable housing partners that such an agreement is necessary. The purpose of this provision is to ensure that all financial and logistical aspects of affordable housing projects are comprehensively addressed, enabling the successful and timely completion of these projects.

Conditions for Authorization:

The City Manager's authority to approve a related development agreement is subject to the following conditions:

1. Necessity: The developers and affordable housing partners must jointly determine that a separate agreement is essential to address specific financial or operational needs related to the affordable housing project.

2. Consistency: The proposed related development agreement must be consistent with the goals and objectives of the primary development agreement.

3. Transparency: All parties must ensure that the terms and conditions of the related development agreement are transparent and do not conflict with the primary agreement.

4. Approval Process: The related development agreement must undergo a thorough review process, including but not limited to legal, financial, and operational assessments, to ensure its viability and compliance with applicable regulations.

By including this provision, the parties acknowledge the importance of flexibility in addressing the unique challenges of affordable housing finance and commit to working collaboratively to achieve the project's success.

Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372 Exhibit B-2: Amendment 1
Performance Schedule and Incentives - Lot 2
[Changes shown for review purposes.]
Action Performance Target Incentive with Target Met

1. Submission of
Downtown Permit
application.

Within 30 days after execution
of Development Agreement.

2. Approval of Downtown
Permit application.

Within 6 months of submittal
and determination of
complete Downtown Permit
application. This time period
shall be tolled at any time that
the application has been
submitted to the City until
such time as the application is
returned by the City to the
Developer.

3. Opening of escrow for
property.

Within 30 days of approval of
Downtown Permit application.

Payment of $50,000 deposit
to the City for the property by
Vernon Property Group,
LLC.

4. Submission of
construction
drawings, including
grading, landscaping,
and construction
plans.

Within 12 months after
Downtown Permit approval.

Attachment B
Perlman – SDA Assignment 4920-5773-5331v.2 0061257-000372

5. Approval of
construction
drawings, including
grading, landscaping,
and construction
plans for first phase
and issuance of
building permits.

Within 6 months after receipt
by the City. Developer's
deadline to perform shall be
tolled at any time that the
application has been
submitted to the City until
such time as the application is
returned by the City to the
Developer.

6. Submission of
evidence documenting
equity capital and
financing.
30 days prior to the close of
escrow.

7. Acceptance of
evidence documenting
equity capital and
financing.
30 days prior to the close of
escrow.

8. Close of escrow for
property.

Upon completion of all
conditions to close escrow.

Payment of remaining
$70,000 of purchase price by
Vernon Property Group, LLC..

9. Commencement of
construction.

Within 30 days after
conveyance of the property by
the City to the Developer.

10. Completion of
construction and
issuance of
certification of
occupancy.

Within 42 months after
building permit issuance.

Attachment C
31044858-v3
4913-7571-1396v.2 0061257-000372
WHEN RECORDED MAIL TO:

Citibank, N.A.

Transaction and Asset Management Group/
Post Closing
Citi Community Capital
3800 Citibank Center
Tampa, Florida 33610
Re: The Perlman Deal ID No. ________________

SUBORDINATION AGREEMENT
(City of Santa Maria)
Attachment C
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

SUBORDINATION AGREEMENT
(City of Santa Maria)
THIS SUBORDINATION AGREEMENT (this “Agreement”) is dated and effective as of _______________ 1, 2026, by and among the CITY OF SANTA MARIA, a California municipal corporation (the “City”), CITIBANK, N.A., a national banking association (“Senior Lender”), and SANTA MARIA NORTH BROADWAY LP, a California limited partnership (“Borrower”). The date of this Agreement as set forth above is for reference purposes only, and this Agreement will not be effective and binding until the Closing Date (as defined in the Borrower Loan Agreement).

RECITALS:

A. The Borrower has applied to the California Municipal Finance Authority, a joint exercise of powers agency duly organized and existing under the laws of the State of California (“Governmental Lender”), for a loan (the “Senior Loan”) for the acquisition, construction, development, equipping and/or operation of a 150-unit multifamily residential project (the “Project”) located on the land described in Exhibit A hereto in the City of Santa Maria, Santa Barbara County, California, known or to be known as The Perlman (the “Mortgaged Property”).

B. The Senior Loan is evidenced by (i) that certain Multifamily Note (Tax-Exempt), dated as of the Closing Date, in the maximum principal amount of $______________, made by Borrower payable to the order of Governmental Lender (the “Tax-Exempt Note”), (ii) that certain Multifamily Note (Taxable), dated as of the Closing Date, in the maximum principal amount of $_______________, made by Borrower payable to the order of Governmental Lender (the “Taxable Note”, and together with the Tax-Exempt Note, the “Senior Note”) and (iii) that certain Borrower Loan Agreement, dated as of the date hereof, by and between Borrower and Governmental Lender (the “Borrower Loan Agreement”)
C. The Senior Loan is secured by, among other things, that certain Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing, dated as of the date hereof, executed by Borrower for the benefit of Governmental Lender (as the same may from time to time be extended, consolidated, substituted for, modified, increased, amended and supplemented, the “Senior Security Instrument”) which Senior Security Instrument encumbers the Mortgaged Property.

D. The Borrower has requested that Senior Lender enter into that certain Funding Loan Agreement, dated as of the date hereof, by and among Governmental Lender, __________________________, a ____________________________, as fiscal agent (“Fiscal Agent”), and Senior Lender (the “Funding Loan Agreement”), pursuant to which Senior Lender will make a loan to Governmental Lender (the “Funding Loan”), the proceeds of which will be used to make the Senior Loan pursuant to the Borrower Loan Agreement to Borrower. The Senior Loan will be advanced to Borrower pursuant to that certain Construction Funding Agreement, dated as of the date hereof, by and between Borrower and Senior Lender (the “Construction Funding Agreement”; together with the Senior Note, the Senior Security Instrument, the 2 The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City) Borrower Loan Agreement, and all other documents executed in connection with the Senior Loan, including this Agreement, the “Senior Loan Documents”).

E. The Senior Note and the Senior Security Instrument shall each be assigned by Governmental Lender to ///[Fiscal Agent]/// to secure the Funding Loan. The interest of the Governmental Lender in the Borrower Loan Agreement shall be assigned to Fiscal Agent and Senior Lender, except for the Unassigned Rights (as defined in the Funding Loan Agreement).

Senior Lender has requested that all remaining Borrower Loan Documents be executed in favor of Senior Lender.

F. The City and Vernon Property Group, LLC, a California limited liability company (“Developer”), entered into that certain Sales and Disposition Agreement dated as of September 17, 2024 (the “SDA”), a memorandum of which (the “Memorandum of SDA”) will be recorded in the Recording Office (as hereinafter defined), and pursuant to which the City has agreed to sell to Developer, and Developer has agreed to develop, certain real property located in Santa Barbara County, California and more particularly described therein, which real property includes the Mortgaged Property. The SDA provides for the construction and development of an affordable housing project on the Mortgaged Property, and in furtherance of thereof, Developer, Borrower and the City are entering into that certain Estoppel, Amendment, and Partial Assignment of Sales and Disposition Agreement (the “Assignment and Assumption Agreement”), pursuant to which Developer will assign to Borrower all of its right, title and interest in, to and under the SDA, but only as it relates to the Mortgaged Property, and Borrower will assume all of Developer’s right, title, interest and obligations thereunder but only as it relates to the Mortgaged Property. The Mortgaged Property will be conveyed pursuant to that certain Grant Deed (the “Grant Deed”) executed by the City in favor of Borrower. In connection with the SDA, Developer and the City are also entering into that certain Memorandum of Option and Sales and Disposition Agreement dated as of ________________, 2026 (the “Memorandum of Option”, and together with Sections

9.3, 9.8 and 9.9 of the SDA, the Memorandum of SDA, and Sections ___ of the Grant Deed, the “City Documents”). [NOTE: THE GRANT INCORPORATES ALL OF THE TERMS OF THE SDA. WE NEED TO BE ABLE TO SUBORDINATE THOSE SAME PROVISIONS (SECTIONS 9.3, 9.8 AND 9.9) HERE, WHICH MAY REQUIRE SOME MODIFICATIONS TO THE GRANT DEED SO THAT WE CAN SUBORDINATE SPECIFIC SECTIONS THEREIN].

G. As a condition to consenting to Borrower entering into the Assignment and Assumption Agreement, Senior Lender requires that the City execute and deliver this Agreement.

H. The Senior Security Instrument, the SDA, the Memorandum of SDA, and the Memorandum of Option are intended to be recorded in the Official Records of Santa Barbara County, California (the “Recording Offices”).

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and to induce the making of the Senior Loan, the City hereby agrees as follows:
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4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

1. City Documents are Subordinate; Acts by Senior Lender do not Affect Subordination.
(a) The City hereby covenants and agrees on behalf of itself and its successors and permitted assigns that the City Documents are and shall at all times continue to be, subordinate, subject and inferior (in priority) to the prior payment in full of the Senior Loan, and that the liens, rights, and priority interests granted to the City in connection with the City Documents are, and are hereby expressly acknowledged to be in all respects and at all times, subject, subordinate and inferior in all respects to the liens, rights, payment, priority and security interests granted to Senior Lender under the Senior Loan and the Senior Loan Documents and the terms, covenants, conditions, operations and effects thereof.
(b) The subordination of the City Documents shall continue in the event that any payment under the Senior Loan Documents (whether by or on behalf of Borrower, as proceeds of security or enforcement of any right of set-off or otherwise) is for any reason repaid or returned to Borrower or its insolvent estate, or avoided, set aside or required to be paid to Borrower, a trustee, receiver or other similar party under any bankruptcy, insolvency, receivership or similar law. In such event, the Senior Loan or part thereof originally intended to be satisfied shall be deemed to be reinstated and outstanding to the extent of any repayment, return, or other action, as if such payment on account of the Senior Loan had not been made.
(c) The City hereby acknowledges and agrees that Senior Lender may, subject to the last sentence of this paragraph (c), without the consent or approval of the City, agree with Borrower to extend, consolidate, modify, increase or amend any or all the Senior Loan Documents and otherwise act or fail to act with respect to any matter set forth in any Senior Loan Document (including, without limitation, the exercise of any rights or remedies, waiver, forbearance or delay in enforcing any rights or remedies, the declaration of acceleration, the declaration of defaults or events of default, the release, in whole or in part, of any collateral or other property, and any consent, approval or waiver), and all such extensions, consolidations, modifications, amendments acts and omissions shall not release, impair or otherwise affect the City’s obligations and agreements hereunder. (d) Without limiting any other provision of this Section 1, the City further agrees that, notwithstanding any provision of the City Documents to the contrary, (i) Senior Lender shall have all approval, consent and oversight rights in connection with any insurance claims relating to the Mortgaged Property and any decisions regarding the use of insurance proceeds after a casualty loss or condemnation awards, (ii) any restrictions on transfers of the Mortgaged Property shall not apply to any transfer of title pursuant to foreclosure, or of (or the exercise of a power of sale contained in) the Senior Security Instrument, and (iii) the City shall not exercise any right under the City Documents, in equity or at law, to take possession of the Mortgaged Property or have a receiver appointed with respect to the Mortgaged Property, unless the City shall have provided Senior Lender with at least sixty (60) days’ prior notice of such exercise. 4 The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

2. Enforcement Costs. In the event any legal action is filed to enforce or interpret this Agreement, then the prevailing party in such action shall be entitled to receive from the nonprevailing party the prevailing party’s reasonable attorney’s fees and other legal costs.

3. Notices. Any notice which any party hereto may be required or may desire to give hereunder shall be deemed to have been given and shall be effective only if it is in writing and (i) delivered personally, (ii) mailed, postage prepaid, by United State registered or certified mail, return receipts requested, or (iii) delivered by overnight express courier, in each instance addressed as follows:

If to Borrower: Santa Maria North Broadway LP
5251 Ericson Way
Arcata, California 95521
Attention: Christopher Dart
With a copy to: Odu & Associates
31805 Temecula Parkway, Suite 720
Temecula, California 92592
Attention: Nkechi Odu, Esq.

And a copy to: RBC Community Investments, LLC
600 Superior Avenue, Suite 2300
Cleveland, Ohio 44144
Attention: President and General Counsel
And a copy to: Bocarsly Emden Cowan Esmail & Arndt LLP
633 West Fifth Street, Suite 5880
Los Angeles, California 900071
Attention: Kyle Arndt, Esq.

If to the City: City of Santa Maria
110 E. Cook
Santa Maria, California 93454
Attention: City Manager
With a copy to:

And a copy to:

City of Santa Maria
204 E. Cook
Santa Maria, California 93454
Attention: City Attorney
City of Santa Maria
110 S. Pine Street
Santa Maria, California 93454
Attention: Community Development Director
5 The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City) If to Senior Lender: Citibank, N.A.
388 Greenwich Street, Trading 4th Floor
New York, New York 10013
Attention: Transaction and Asset Management Group
Re: The Perlman Deal ID No. ______________
Facsimile: (212) 723-8209
With a copy to: Citibank, N.A.

Transaction and Asset Management Group/Post Closing
Citi Community Capital
3800 Citibank Center
Tampa, Florida 33610
Re: The Perlman Deal ID No. ______________
Prior to the Conversion Date,
with a copy to:

Citibank, N.A.
388 Greenwich Street, Trading 4th Floor
New York, New York 10013
Attention: Account Specialist
Re: The Perlman Deal ID No. ______________
Facsimile: (212) 723-8209
Following the Conversion
Date, with a copy to:

Citibank, N.A.
c/o Berkadia Commercial Servicing Department
323 Norristown Road, Suite 300
Ambler, Pennsylvania 19002
Attention: Client Relations Manager
Re: The Perlman Deal ID No. ______________
Facsimile: (215) 328-0305
And a copy of any notices of
default sent to:

Citibank, N.A.
388 Greenwich Street, 17th Floor
New York, New York 10013
Attention: General Counsel’s Office
Re: The Perlman Deal ID No. ______________
Facsimile: (646) 291-5754
or at such other addresses or to the attention of such other persons as may from time to time be designated by the party to be addressed by written notice to the other in the manner herein provided. Notices, demands and requests given in the manner aforesaid shall be deemed sufficiently served or given for all purposes hereunder when received or when delivery is refused or when the same are returned to sender for failure to be called for.

This Agreement shall constitute notice to City of the notice address of Senior Lender, as holder of a deed of trust secured by the Mortgaged Property, for purposes of Section 8.3 of the SDA. All notices under Section 8.3 of the SDA shall be delivered to Senior Lender at the addresses set forth above in this Section 3.
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4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

4. WAIVER OF TRIAL BY JURY. TO THE MAXIMUM EXTENT PERMITTED

UNDER APPLICABLE LAW, EACH OF THE PARTIES HERETO (A) COVENANTS AND

AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING

OUT OF THIS AGREEMENT OR THE RELATIONSHIP BETWEEN THE PARTIES THAT IS

TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY

WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS

SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

5. Term. The term of this Agreement shall commence on the date first written above and shall continue until the earliest to occur of the following events: (i) the payment of all of the principal of, interest on and other amounts payable under the Senior Loan Documents; or (ii) the acquisition by Senior Lender of Borrower’s interest in the Mortgaged Property pursuant to judicial foreclosure, or of (or the exercise of a power of sale contained in) the Senior Security Instrument.

6. Miscellaneous.
(a) City shall give Senior Lender a concurrent copy of each notice of a violation or other material notice given by City under the IIG Restrictive Covenant. (b) This Agreement shall bind and inure to the benefit of all successors and assigns of City and Senior Lender. Senior Lender may assign its interest in the Senior Loan Documents without notice to or consent of City. City may assign its interest, subject to this Agreement, in the Grant Documents without notice to or consent of Senior Lender. (c) Senior Lender hereby consents to the IIG Restrictive Covenant; provided, however, that this Agreement does not constitute an approval by Senior Lender of the terms of the IIG Restrictive Covenant. City hereby consents to the Senior Loan and the Senior Loan Documents; provided, however, that this Agreement does not constitute an approval by City of the terms of the Senior Loan Documents.
(d) This Agreement may be executed in counterpart originals, each of which shall constitute an original and all of which, when taken together, shall constitute one and the same instrument.
(e) IN ALL RESPECTS, INCLUDING, WITHOUT LIMITATION,

MATTERS OF CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT

AND THE OBLIGATIONS ARISING HEREUNDER, THIS AGREEMENT HAS BEEN

ENTERED INTO AND DELIVERED IN, AND SHALL BE CONSTRUED IN

ACCORDANCE WITH AND GOVERNED BY, THE LAWS OF THE STATE WHERE

THE MORTGAGED PROPERTY IS LOCATED, WITHOUT GIVING EFFECT TO ANY PRINCIPLES OF CONFLICTS OF LAW.
(f) Time is of the essence in the performance of every covenant and agreement contained in this Agreement.
7 The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City) (g) If any provision or remedy set forth in this Agreement for any reason shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or remedy of this Agreement and this Agreement shall be construed as if such invalid, illegal or unenforceable provision or remedy had never been set forth herein, but only to the extent of such invalidity, illegality or unenforceability.
(h) Each party hereto hereby represents and warrants that this Agreement has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding agreement enforceable in all material respects in accordance with its terms. (i) Borrower hereby acknowledges and consents to the execution of this Agreement, and agrees to be bound by the provisions hereof that are applicable to Borrower. Solely as between Senior Lender and City, all of the signatories below hereby agree that to the extent of any conflict between the terms and provisions of this Agreement and the terms and provisions of the Senior Loan Documents respectively, the terms and provisions of this Agreement shall govern and control. By executing this Agreement in the place provided below, Borrower hereby (i) acknowledges the provisions hereof, (ii) agrees not to take any action inconsistent with Senior Lender’s rights or City’s rights under this Agreement, (iii) waives and relinquishes to the maximum extent permitted by law any and all rights, defenses and claims now existing or hereinafter accruing relating to City’s forbearance from exercising any rights and remedies pursuant to this Agreement, including, without limitation, any defenses based on the statute of limitations or any equitable defenses, such as laches, and (iv) acknowledges and agrees that (A) this Agreement is entered into for the sole protection and benefit of Senior Lender and City (and their respective successors, assigns and participants), and no other person (including Borrower) shall have any benefits, rights or remedies under or by reason of this Agreement, (B) nothing in this Agreement is intended, or shall be construed to, relieve or discharge the obligations or liabilities of any third party (including Borrower under the Senior Loan Documents), (c) neither of them nor any of their affiliates shall be, or be deemed to be, beneficiaries of any of the provisions hereof or have any rights hereunder whatsoever, and (D) no provision of this Agreement is intended to, or shall be construed to, give any such third party (including Borrower) any right subrogating to the rights of, or action against, Senior Lender or City.
(j) No amendment, supplement, modification, waiver or termination of this Agreement shall be effective against any party unless such amendment, supplement, modification, waiver or termination is contained in a writing signed by such party. (k) No party other than Senior Lender and City shall have any rights under, or be deemed a beneficiary of any of the provisions of, this Agreement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Attachment C
S-1
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City) IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Subordination Agreement or caused this Subordination Agreement to be duly executed and delivered by their respective authorized representatives as of the date first set forth above.

SENIOR LENDER:

CITIBANK, N.A.

By: ________________________________
________________________________
Authorized Signatory
Deal ID No. ______________________

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On ______________, 2026 before me, ___________________________________________ (here insert name and title of the officer), personally appeared _____________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________ (Seal)
S-2
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City) CITY:

CITY OF SANTA MARIA,
a California Municipal Corporation
By: ________________________________
Name: ________________________________
Title: ________________________________
APPROVED AS TO FORM:
____________________________
City Attorney

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________ (Seal)
S-3
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

CONSENT OF DEVELOPER
Developer hereby acknowledges receipt of a copy of this Subordination Agreement by and between Citibank, N.A. and the City of Santa Maria, and consents to the agreement of the parties set forth herein.

DEVELOPER:

VERNON PROPERTY GROUP, LLC,
a California limited liability company
By: ________________________________
Name: ________________________________
Title: ________________________________

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________ (Seal)
S-4
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

CONSENT OF BORROWER
Borrower hereby acknowledges receipt of a copy of this Subordination Agreement by and between Citibank, N.A. and the City of Santa Maria, and consents to the agreement of the parties set forth herein.

BORROWER:

SANTA MARIA NORTH BROADWAY LP,
a California limited partnership
By: Santa Maria North Broadway LLC,
a California limited liability company,
its Administrative General Partner
By: Danco Communities,
a California corporation,
its Manager
By: ______________________________
Daniel Johnson
President
By: Community Revitalization and Development
Corporation,
a California nonprofit public benefit corporation,
its Managing General Partner
By: _________________________________
David Rutledge
President
Attachment C
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________ (Seal)
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

STATE OF CALIFORNIA

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _______________________________ (Seal)
Attachment C
The Perlman
4913-7571-1396v.2 0061257-000372 Subordination Agreement (City)

EXHIBIT A

LEGAL DESCRIPTION
Attachment D
1 June 2, 2025 Draft

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
(Mail tax statements as specified below.)

SPACE ABOVE THIS LINE FOR RECORDER'S USE

PARKING AGREEMENT
The undersigned declare that the documentary transfer tax is $ -0- as the consideration is less than $100.00 (Revenue and Taxation Code Section 11911). The land, tenements or realty is located in the CITY of Santa Maria, Santa Barbara County, California.

THIS PARKING AGREEMENT is made as of _______, 2026, by and between THE CITY OF SANTA MARIA, a municipal corporation and charter city (the “CITY”) and [ENTITY] (“DEVELOPER”), with reference to the following facts.

A. The CITY is the owner in fee of all of that certain real property located within the CITY’s jurisdiction boundaries in Santa Barbara County, California described in Exhibit A attached hereto and incorporated herein by this reference (the “Parking Structure”, portions of Santa Barbara County APNs 125-320-037, -041, -050) which consists of a multi-level parking structure.

B. DEVELOPER will develop that certain real property located in the CITY, in Santa Barbara County, California described in Exhibit B attached hereto and incorporated herein by this reference under that certain Sales and Disposition Agreement (“SDA”) with the CITY dated September 17, 2024 (the “Developer Parcels”). (Santa Barbara County APN 121-224-035).

C. Pursuant to the CITY’S Downtown Permit Number DT2025-0003 (the “DT Permit”) issued to DEVELOPER on August 5, 2025, DEVELOPER wishes to proceed with development of the Developer Parcels designated as Lot 2 in the SDA.

E. Item 6 of the conditions of approval of the DT Permit is that:
“9. Parking Area. 133 off-street parking spaces are required, and 78 offstreet parking spaces are provided on-site, and 55 off-street parking spaces are to be provided off-site in the City-owned parking structure on Main Street according to the Sales and Disposition Agreement between the City of Santa Maria and the Vernon Group.

A. Prior to Certificate of Occupancy Issuance, the project applicant shall obtain a contractual agreement with the City for the use of parking 2 June 2, 2025 Draft
in the City-owned parking garage to satisfy the parking required, which shall also include entering into a property-based business improvement district and/or other mechanism for the collection of fees to pay for parking improvement and maintenance.

B. The on-site off-street parking area and access shall be paved and doublestriped in accordance with City parking standards. The parking area shall be maintained and regularly resealed and restriped. Please note that a building permit is required for restriping. The striping shall be visible at all times and the parking area shall be void of potholes and depressions.

F. By this Parking Agreement the parties wish to fulfill the foregoing condition of approval and enter into the parking agreement required.

G. The use and operation of the Parking Structure is governed by the July 23, 1974 Construction, Operation and Reciprocal Easement Agreement, recorded as Instrument No. 27702, in Book 2572, Page 531 in the Office of the County Recorder for the County of Santa Barbara, California any amendments or extensions thereto, either existing now or entered into in the future. It is expressly understood that any and all rights granted under this Parking Agreement are subject and subordinate to those granted to current or future parties to the REA.

NOW, THEREFORE, in fulfilment of the foregoing condition, the CITY and DEVELOPER (each a “Party” and collectively the “Parties”) agree as follows.

1. TERM. This Parking Agreement shall automatically terminate 10 years after the date last signed below. The Parking Agreement may be extended by mutual consent of the Parties in no greater than 10 year increments. In no event shall any extension to this Parking Agreement continue past the scheduled November 19, 2075 permanent closure of the Parking Structure.

Before that time, DEVELOPER will need to obtain alternative parking options to continue to meet the requirements of the DT Permit and maintain the certificates of occupancy for the buildings on the DEVELOPER Parcels.

2. EARLY TERMINATION. CITY may terminate this Parking Agreement, in whole or in part, in its sole discretion, on 45 days’ written notice if any of the subconditions of this Section are met. DEVELOPER shall be entitled to no compensation or reimbursement of already paid fees in the event of an early termination under this Section. a. The Parking Structure is deemed unsafe for continued operation in the discretion of the CITY Building Official after consultation with an independent structural engineer; b. After the effective date of this Parking Agreement, an independent engineering consultant hired by the CITY determines that the Parking Structure requires over $2,000,000 in repairs for continued operations;
c. The CITY is sued by a non-party to this Parking Agreement for breach of the REA; or,
3 June 2, 2025 Draft
d. A material breach of this Parking Agreement that is not cured by the breaching party after 30 days’ written notice.

3. NONEXCLUSIVE CHARACTER. The parking rights granted hereunder are non-exclusive and shall be enjoyed by DEVELOPER, and his successors in interest, in common with all other persons having interests in the Parking Structure, and the public in general.

4. PARKING RIGHTS. The rights granted herein are located and described as follows.
a. Parking Rights. A right to park up to 55 passenger automobiles and trucks (but not commercial vehicles over three-quarters of a ton in carrying capacity) is hereby granted to DEVELOPER and established by the CITY on the Parking Structure for reasonable parking in all of the parking spaces thereon, so as to provide for the parking of motor vehicles in the Parking Structure for the benefit of the Developer Parcel.
b. Ingress and Egress Rights. A right of ingress and egress is hereby granted to DEVELOPER and established by the CITY on the Parking Structure for reasonable pedestrian and vehicular access, ingress and egress over all of the walkways, driveways and drive aisles in the Parking Structure, so as to provide for the passage of motor vehicles and pedestrians across the Parking Structure and to and from all abutting streets or rights of way furnishing access to the Parking Structure, all for the benefit of the Developer Parcel. c. Parking Zones. CITY may, in its sole discretion, establish designated parking zones or spaces for the use of parking rights under this Parking Agreement. This may include, but is not limited to, numbered parking or cordoned-off parking areas. In the event that designated parking zones or spaces are established, DEVELOPER shall be responsible for 100% of the costs of implementation of the parking zones (exclusive of CITY staff time) and 100% of any additional maintenance costs specific to the maintenance of said designated parking zones or spaces.
d. Disruption of Parking Rights. CITY may, from time to time and in its sole discretion, disrupt the Parking Rights granted under this Parking Agreement where necessary to perform its business of operation of the Parking Structure. During these disruptions, CITY shall have no obligation to provide DEVELOPER alternative parking. e. Limitation on Parking Rights. DEVELOPER shall have no other rights than those expressly granted in this Parking Agreement. CITY shall have no duties to DEVELOPER regarding the Parking Structure not expressly listed in this Paring Agreement. This Parking Agreement does not make DEVELOPER a third-party beneficiary to any pre-existing agreement related to the Parking Structure, including the REA.

5. PERMIT SYSTEM. Parking between the hours of 1:00 a.m. and 6:00 a.m. is not permitted within CITY Parking Structures without a CITY issued Permit. CITY and DEVELOPER shall meet and confer to develop a permitting system applicable to the Developer Parcels after issuance of a building permit for the DT Permit and prior to issuance of a certificate 4 June 2, 2025 Draft
of occupancy for any buildings on the Developer Parcels. CITY, in its sole discretion, may establish and amend rules and regulations for the permitting system in addition to or in lieu of the rules applicable to its CITY Parking Structures Ordinance.

6. ANNUAL PAYMENT. DEVELOPER is responsible for the proportional, actual costs of the operation and maintenance of the Parking Structure of its 55 parking spaces out of the Parking Structure’s total 1,078 spaces, for a total of 5.1% of the City’s total annual maintenance and operational costs. Maintenance and operation costs include costs of striping, paving, resealing, structural repairs, security, landscaping, and any other costs CITY incurs (either through its own staff and materials or costs paid to outside contractors) to maintain, operate, or repair the Parking Structure during the term of this Parking Agreement. During the first year of the Parking Agreement, DEVELOPER shall pay to the CITY $2,750 per month, equating to $50 per space per month, on the first day of the month. This rate is exclusive to Lot 2 in the SDA, which is to be developed as deed-restricted affordable housing. At the conclusion of the first year and each subsequent year thereafter, the CITY shall provide an accounting of its actual costs to DEVELOPER. Any overpayments shall be applied as a credit to the subsequent year. Any underpayments shall be paid within 45 days. In the first full month after the annual accounting is provided, the monthly payment shall be adjusted to reflect the actual average monthly costs of the prior year. In the event that CITY expects to incur significant operation, maintenance, or repair costs on the parking structure that are anticipated to be an expense greater than 200% of the prior year’s operation, maintenance and repair costs, the Parties shall meet and confer to discuss an updated payment or financing schedule.

7. INDEMNIFICATION FOR BREACH OF CONTRACT. DEVELOPER
acknowledges that the rights granted under this Parking Agreement may be in conflict with the CITY’s obligations under the REA, but has presented an argument that it is entitled to parking under the REA and therefore, that this Parking Agreement does not violate the REA. To the fullest extent permitted by law, DEVELOPER shall indemnify, defend (with independent counsel approved by the CITY) and hold harmless the CITY, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) that are brought against the CITY by any party, successor party, or third party beneficiary to the REA alleging that this Parking Agreement constitutes a breach of the REA. The provisions of this paragraph survive completion of the term of this Parking Agreement. The provisions of this Section are not limited by the provisions of the section relating to insurance.

8. INDEMNIFICATION FOR NEGLIGENCE. To the fullest extent permitted by law, DEVELOPER shall indemnify, defend (with independent counsel approved by the CITY) and hold harmless the CITY, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the use of the Parking Structure by DEVELOPER, its agents, successors, tenants, or customers of the Developer Parcels. The provisions of this paragraph survive completion of the term of this Parking Agreement. The 5 June 2, 2025 Draft
provisions of this Section are not limited by the provisions of the section relating to insurance.

9. INSURANCE. DEVELOPER shall procure and maintain for the duration of the Parking Agreement general liability insurance in a minimum amount of $10,000,000 per occurrence against claims for injuries to persons or damages to property which may arise from or in connection with DEVELOPER’s, its agents, successors, tenants, or customers’ use of the Parking Structure. If DEVELOPER maintains broader coverage and/or higher limits than the minimum required, the CITY requires and shall be entitled to the broader coverage and/or higher limits maintained by DEVELOPER. The CITY must be named as an additional insured on the policy, the policy must be listed as the primary insurance as relates to the uses and obligations contemplated by this Parking Agreement, and the policy must include a waiver of subrogation in favor of the CITY.

10. PARKING STRUCTURE DISCRETION. As between the parties, the CITY has sole and exclusive discretion regarding operation, maintenance, and repair decisions relating to the Parking Structure. CITY shall have the right, but not the obligation, to conduct an annual structural inspection to assess continued viability of the Parking Structure, the cost of which shall be included in the operational costs charged to DEVELOPER pursuant to Section 6.

11. BUSINESS IMPROVEMENT DISTRICT. At such time as may be requested by the CITY, DEVELOPER shall execute and deliver to the CITY such documents as the CITY may reasonably require to subject the DEVELOPER Parcel to a business improvement district (BID) or other mechanism for collection of fees to pay for the Parking Structure’s improvement and maintenance on the same proportionate basis as all other properties utilizing the parking facilities within the Parking Structure, in addition to general services provided consistent with the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Sections 36600 through 36671).

12. ENTIRE AGREEMENT. This instrument and the attached Exhibits constitute the entire agreement between the parties relating to the easements granted herein. Any prior agreements, promises, negotiations, or representations not expressly set forth in this instrument are of no force and effect. Any amendment to this instrument shall be of no force and effect unless it is in writing, signed by the party to be charged.

13. ATTORNEY’S FEES. If either party to this instrument, or their successors in interest shall bring any action for any relief against the other, declaratory or otherwise, arising out of this instrument, the losing party shall pay to the prevailing party a reasonable sum for attorneys’ fees incurred in bringing such suit and/or enforcing any judgment granted therein, all of which shall be deemed to have accrued upon the commencement of such action and shall be paid whether or not such action is prosecuted to judgment. Any judgment or order entered in such action shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such judgment.

14. BINDING EFFECT. This instrument shall be binding on and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns; provided, however, that any assignment of this Parking Agreement without the express written 6 June 2, 2025 Draft
consent of CITY shall be null and void.

IN WITNESS WHEREOF, the undersigned have executed this Parking Agreement at Santa Maria, California, as of the date written below.

DATED: _____ ___, 2026

CITY OF SANTA MARIA
By: _________________________
David W. Rowlands
City Manager
_________________________________
[Signatory]
[Title]
ATTEST:
_________________________
Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
_________________________
Thomas T. Watson
CITY Attorney
[Acknowledgments follow on next page.]
DRAFT - Do Not Sign
DRAFT - Do Not Sign
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7 June 2, 2025 Draft

ACKNOWLEDGMENTS

STATE OF CALIFORNIA )
)

COUNTY OF SANTA BARBARA )
On ________ ___, 2025, before me, ____________________________, a Notary Public, personally appeared ALICE M. PATINO, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capaCITY, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _____________________________ (Seal)

STATE OF CALIFORNIA )
)

COUNTY OF SANTA BARBARA )
On ________ ___, 2025, before me, ____________________________, a Notary Public, personally appeared MARK C. DEVELOPER, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capaCITY, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _____________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

EXHIBIT A

EXHIBIT A TO

PARKING AGREEMENT

PARKING STRUCTURE LEGAL DESCRIPTION
[Insert]

EXHIBIT B

EXHIBIT B TO

PARKING AGREEMENT

DEVELOPER PARCEL LEGAL DESCRIPTION
[Insert]

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Rebecca Campbell, Director of Finance
DATE: June 16, 2026
SUBJECT: Adoption of a Resolution Approving the 2026 Investment Policy Update
Description:

The City Council will consider approving the annual Investment Policy for which the primary objectives are for the safety, liquidity, and yield of the City’s investment activities.

RECOMMENDATION:

Adopt a Resolution approving the City of Santa Maria’s 2026 Investment Policy.

BACKGROUND:

California Government Code Section 53646 requires the Treasurer or Chief Fiscal Officer to annually submit a written Investment Policy to the City Council at a public meeting.

Typically, the investment policy is updated for changes in regulations and presented to the City Council every June.

PFM Asset Management LLC (PFM), a division of U.S. Bancorp Asset Management, Inc., serves as the City’s investment advisor, providing comprehensive portfolio management and advisory services. PFM has reviewed and is recommending modifications to the City’s Investment Policy.

DISCUSSION:

The Investment Policy incorporates objectives and policies from a variety of notable sources such as the California Municipal Treasurers' Association, the California Association of County Treasurers and Tax Collectors, the California Society of Municipal Finance Officers, the State of California Local Agency Investment Fund (LAIF), and Joint Powers Authority (Local Government Investment Pools).

The City’s Investment Policy:

1. Appoints the Director of Finance as the Investment Officer of the City;

2. Assigns responsibility for investments to the Investment Officer; 2 3. Establishes an Investment Oversight Committee consisting of the City Manager, Director of Finance, City Attorney, and a City Councilmember; and

4. Defines the investment objectives as:
a. Safety: Safety of principal is the foremost objective of the investment program; b. Liquidity: The funds of the City shall be maintained liquid enough to meet all anticipated requirements;
c. Yield and Average Market Rate of Return: After considering safety and liquidity, the investment program shall seek a market-average rate of return; d. Prudence: Sets standards to be used by the Investment Officer as "prudent investor" (Government Code Section 53600.3); and
e. Public Trust: All participants in the investment process are custodians of public funds and trust.

5. Requires that the City Treasurer submit a quarterly investment report to the City Council; and

6. Authorizes and defines the suitable investments for City funds; and

7. Requires that a written system of internal controls be designed to prevent losses from fraud, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by investment officers of the City; and

8. Requires that the Investment Policy be annually reviewed by the City’s Investment Oversight Committee and submitted to the City Council for adoption.

The Investment Policy indicates that the types of authorized investments are those types of investments allowed in Government Code Section 53600.3, and limited to:

1. Local Agency Investment Fund (LAIF);

2. Obligations of the Federal or State government,

3. Certificates of Deposit/Deposit Placement Services,

4. Bankers' Acceptances/Commercial Paper,

5. Money Market Mutual Funds,

6. Medium-term Corporate Notes,

7. California and California Local Agency Municipal Obligations,

8. Supranationals; and

9. Joint Powers Authority (Local Government Investment Pools).

In addition to the investments listed above, government statutes authorize the use of other investment instruments, such as reverse repurchase agreements and derivatives; however, the Investment Officer is not authorized to purchase or use reverse repurchase agreements or derivatives in any form. Reverse repurchase agreements constitute shortterm borrowing using securities as collateral. Derivatives are contracts whose value is tied to the price of some other asset, such as stocks, bonds, commodities, or currencies.

PFM has completed their review of the City of Santa Maria’s 2025 Investment Policy and is recommending modifications to the City’s Investment Policy that would align with recent Code changes introduced by Senate Bills 827, 852, 595 and 858, that went into effect on January 1, 2026. A summary of the Code changes is provided below:
3  Senate Bills 595 and 858 revised Section 53601 of Code as follows:
o The maximum maturity for eligible commercial paper was extended from 270 to 397 days. (Revision in Section VIII. Authorized Investments for the City and Section IX. Maturities)
o Local agencies with at least $100 million in investment assets are permitted to invest a maximum of 40% of its portfolio in commercial paper until January 1, 2031, then reverts to a maximum of 25%. No change recommended at this time.
o In periods of low interest rates, Code had authorized local agencies to invest in U.S. government securities that could result in zero-interest accrual if held to maturity until January 1, 2026. This provision was extended to January 1, 2031.

Clarifying language in Section VIII. Authorized Investments for the City  SB 827 enhances training requirements for certain local agency officials (legislative bodies, elected officers, and directors) with additional fiscal and financial training every two years.
 SB 852 adds public officials who manage public investments to the list for whom the Fair Political Practices Commission is the filing officer for statements of economic interest and requires filers to use the Commission’s electronic filing system.

There was also a minor revision to language in the Policy to better reflect the current naming convention of “Standard and Poor’s” as “S&P Global” when referencing the credit rating service.

Attached to the report is a marked-up version of the existing Policy to illustrate the recommend changes, and the final version for review.

Investment Oversight Committee
The members of the Investment Oversight Committee have reviewed the policy and recommend that the City Council approve the changes to the 2025 Investment Policy as presented.

Fiscal Considerations
There are no direct costs associated with the Investment Policy. Investments are earning a fair market rate of return. Issues of safety and liquidity of funds comply with the Investment Policy.

Impact on the Community
Adherence to the provisions of the Investment Policy will continue to provide for the safe investment of public funds. The policy authorizes conservative investments and provides a framework for a "buy and hold" philosophy, as opposed to that of a "market trader."

ATTACHMENT(S)
A. Resolution – 2026 Investment Policy Update
B. Investment Policy Mark-up Review 2026
C. Final Version of Investment Policy Update
D. PFM Letter of Recommended Changes to Policy 2026
Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,
APPROVING THE CITY OF SANTA MARIA’S
2026 INVESTMENT POLICY
WHEREAS, the City Council of the City of Santa Maria has directed the City’s Investment Officer to annually submit an Investment Policy to the City Council; and WHEREAS, the Investment Policy has been reviewed 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. Approves and adopts the City of Santa Maria’s 2026 Investment Policy (Attachment C); and
SECTION 2. Authority for implementation and oversight responsibility of the 2026 Investment Policy is delegated to the City’s Investment Officer; 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.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria on this 16
th day of June 2026.

ATTEST:

ATTACHMENT BC
City of Santa Maria
2025 2026 Investment Policy
I. INTRODUCTION
It is the goal of the City of Santa Maria (City) to invest public funds in a manner that will provide maximum security, adequate liquidity, and sufficient yield, while meeting the daily cash flow demand of the City and conforming to all statutes and regulations governing the investment of public funds. The 2024 2026 Investment Policy (Policy) identifies the formal policies and procedures that comprise good cash management and a secure short-term investment program.

II. SCOPE
This investment policy applies to all the financial assets of the City. These funds are accounted for in the City’s audited Annual Comprehensive Financial Report. If the City should invest funds on behalf of another agency and, if that agency does not have an investment policy, the City’s Policy shall govern the agency’s investments.

A. Pooling of Funds – Except for cash that may be restricted, the City shall consolidate cash balances from all funds to maximize investment earnings. Investment income shall be allocated to various funds in accordance with generally accepted accounting principles.

B. Funds Included by the Policy –
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Trust and Agency Funds
Any new fund created by City Council unless specifically exempted C. Funds Excluded from the Policy – The investment of bond proceeds, which are administered by a third-party fiscal agent, will be subject to the conditions and restriction of bond documents and are not governed by this Policy.

III. GENERAL OBJECTIVES
The primary objectives, in priority order, of the City’s investment activities are safety, liquidity, and yield.

A. Safety: Preservation of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and interest rate risk. To attain this objective, the City shall diversify its investments by investing funds among several financial institutions and a variety of securities offering independent returns.

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B. Liquidity: The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets. Emphasis shall be on marketable securities with low sensitivity to market risk. A portion of the portfolio may be placed in money market mutual funds or LAIF which offer same-day liquidity for short-term funds.

C. Yield (Return on Investment): The investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles, commensurate with the City's risk constraints, the liquidity characteristics of the portfolio, State and local laws, and ordinances or resolutions that restrict investments. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low-risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STANDARDS OF CARE
A. Prudence: The standard of prudence to be used by City investment officials shall be the "Prudent Investor Standard" in that a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims.

This "Prudent Investor Standard" shall be applied in the context of managing an overall portfolio. City investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectation are reported in a timely fashion, and appropriate action is taken to control adverse developments. It is the City's full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars.

B. Public Trust, Ethics, and Conflict of Interest: All participants in the investment process shall act as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of public trust.

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related to the performance of the City immediately to the City Manager of Santa Maria and annually to the Fair Political Practices Commission. City employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

V. DELEGATION OF AUTHORITY (GOVERNMENT CODE #53607)
A. Investment Officer: Authority to manage the City’s investment program is delegated to the Director of Finance, as the Investment Officer. Management responsibility for the investment program, which includes the investment, reinvestment, sale, or exchange of securities, is entrusted to the Investment Officer who shall establish and adhere to written procedures, which will comply with all sections of the Government Code of the State of California. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Treasury Manager is authorized to conduct investment-related activities, under the supervision of the Investment Officer, on behalf of the City. The Investment Officer may also delegate the day-to-day placement of investments to an SEC-registered investment advisor.

The investment advisor shall make all investment decisions and transactions in strict accordance with the Government Code of the State of California and this Policy.

B. Investment Oversight Committee: The City has an Investment Oversight Committee, consisting of the City Manager, the Investment Officer, the City Attorney, and a City Councilmember, or their designee. The purpose of the Investment Oversight Committee is to:
1) Review the investment practices used by the Investment Officer for compliance with the Policy and written procedures; and
2) Analyze the quarterly Treasurer's Report for adherence to established guidelines; and
3) Advise the City Council of any deviations from guidelines or any practices deemed to be imprudent for a public agency.

VI. INTERNAL CONTROLS
The Investment Officer is responsible for establishing and maintaining a system of written internal controls. These controls may be annually reviewed with an independent external auditor who will notify the City Council if there is a material non-compliance with the policies and procedures.

The internal controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent action by employees and officers of the City. The internal structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognized that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. Controls deemed most important include control of collusion; separation of duties; separating transaction authority from accounting and recordkeeping; custodial safekeeping; clear delegation of authority; written confirmation of telephone transactions; minimizing the number of authorized investment officials; documentation of transactions; and code of ethics standards.

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Timely bank reconciliations will be completed to ensure proper handling of all transactions. On a monthly basis, the City’s investment portfolio and all related transactions will be reviewed and balanced to appropriate general ledger accounts by the Department of Finance.

VII. REPORTING
The Investment Officer shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program. Based on the discretion of the Investment Officer, the City’s SEC-registered investment advisor may from time to time perform one or more of the following functions: confirm that the portfolio is in compliance with the Government Code of the State of California; present an evaluation of the portfolio and investment strategy recommendations; and provide any other information that may be helpful in the review of the portfolio.

Required elements of the monthly report:

A. Quarterly Reporting to City Council:

The Investment Officer shall submit quarterly reports to the City Council summarizing the status of the current investment portfolio and the individual transactions executed over the last quarter. The report shall be prepared by the Treasury Manager or the Investment Officer’s designee in a manner which shall allow the Investment Oversight Committee and the City Council to ascertain whether investment activities during the reporting period have conformed to the Policy. The report shall include:
1) Type of investment/issuer.
2) Date of maturity.
3) Cost of the security.
4) Current market value of securities with maturity in excess of 12 months. 5) Rate of interest of securities.
6) List of monthly portfolio transactions.
7) A statement that the portfolio is in compliance with the Policy or a discussion of any non-compliant investments.
8) A statement that sufficient monies are available to meet the City’s expenditure requirements for the next six months or an explanation of any cash shortfall.

B. Statement of Investment Policy
The Statement of Investment Policy shall be reviewed when there are any changes made to the policy and submitted to the City Council for adoption by resolution. This is to ensure the Policy's consistency with the overall objectives of preservation of principal, liquidity of yield, and its relevance to current law and financial and economic trends. Any amendments to this Policy shall be forwarded to the City Council for approval.

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VIII. AUTHORIZED INVESTMENT INSTRUMENTS FOR THE CITY
The City shall be governed by the California Government Code, Sections 53600 et seq (Code). If the Code is amended to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to the changes in the revised Code, provided that the changes are not specifically prohibited by the City’s Policy. The City shall be required to present those changes in the annual review of the Policy and to incorporate the new legislation within the Policy.

No more than five percent of the City’s funds may be deposited with or invested in securities issued by any one corporate, financial, or municipal issuer with the exception of the U.S. Treasury, federal agency institutions, government-sponsored enterprises, supranationals, and investment pools such as Local Agency Investment Fund (“LAIF”) and money market mutual funds.

For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this Policy shall not have a forward settlement date exceeding 45 days from the time of investment.

Rating requirements and percentage limitations, where indicated, apply at the time of purchase. In the event a security held by the City is subject to a rating change that brings it below the minimum specified rating requirement, the Investment Officer shall notify the Investment Oversight Committee of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the ratings change, prognosis for recovery or further ratings changes, and the market price of the security.

The following investment instruments are authorized for purchase in accordance with the provisions of Section 53601 et seq of the California Government Code:

U.S. Treasury Instruments
As authorized in Government Code 53601(b), the City may invest in United States treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There are no portfolio limitations on this type of investment.

Government Agency Issues
As authorized in Government Code Section 53601(f), the City may invest in Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, such as Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and Federal Farm Credit Bank (FFCB). There are no portfolio limitations on this type of investment.

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controlled, or operated by the state or any local agency or by a department, board, agency, or authority of the state or any local agency. In addition, these securities shall be rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating organization (NRSRO). Purchase of California and California local agency municipal obligations, together with other state municipal obligations, may not exceed 30 percent of the City's investment portfolio.

Other State Municipal Obligations
Registered treasury notes or bonds of any of the other 49 United States in addition to California, as authorized in Government Code Section 53601(d), including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California (Government Code section 53601[d]). In addition, these securities shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO. Purchase of other state municipal obligations, together with California and California local agency municipal obligations, may not exceed 30 percent of the City's investment portfolio.

Bankers' Acceptances
As authorized in Government Code Section 53601(g), the City may invest in bankers' acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank the short-term paper of which is rated in a rating category of “A-1” or its equivalent or higher by a NRSRO.

Purchases of Bankers' Acceptances may not exceed 180 days maturity or 40 percent of the portfolio. Additionally, no more than 5 percent of the portfolio may be invested in Bankers' Acceptances with any one commercial bank.

Commercial Paper
As authorized in Government Code Section 53601(h), the City may invest in commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO.

The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2):
(1) The entity meets the following criteria: (A) is organized and operating in the United States as a general corporation, (B) has total assets in excess of five hundred million dollars ($500,000,000), and (C) has debt other than commercial paper, if any, that is rated “A” or its equivalent or higher by a NRSRO. (2) The entity meets the following criteria: (A) is organized within the United States as a special purpose corporation, trust, or limited liability company, (b) has program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond, and (C) has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

Purchases of commercial paper may not exceed 270 397 days maturity. Effective until January 1, 2026, investment in commercial paper shall not exceed 40 percent of
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the City’s portfolio. After January 1, 2026, investment in commercial paper shall not exceed 25 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in any one issuer’s commercial paper.

Negotiable Certificates of Deposit (NCD)
As authorized in Government Code Section 53601(i), the City may invest in negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a Federal association (as defined by Section 5102 of the Financial Code), a state or Federal credit union, or by a state or Federally licensed branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated in a rating category of “A” or its equivalent or higher by a NRSRO.

Purchases of negotiable certificates of deposit may not exceed 30 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in any one issuer’s negotiable certificates of deposit.

Deposit Placement Services
Deposits placed through a deposit placement service that meets the requirements of Government Code Section 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by federal deposit insurance. The maximum term for deposits made through placement services shall be five years. Deposit placement services may not exceed 50 percent of the City’s portfolio.

Medium-Term Corporate Notes
As authorized in Government Code Section 53601(k), the City may invest in mediumterm notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States provided such notes are rated in a rating category of “A” or its equivalent or higher by a NRSRO.

Purchases of medium-term corporate notes may not exceed 30 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in the notes of any one issuer.

Asset-backed Securities
As authorized in Government Code Section 53601(o), the City may invest in any mortgage pass-through securities, collateralized mortgage obligations, mortgagebacked or other pay-through bonds, equipment lease-backed certificates, consumer receivable pass-through certificates, and consumer receivable-backed bonds and for securities eligible for investment not issued or guaranteed by federal agencies and GSEs, the following limitations apply:
 A maximum remaining settle of five years or less with no more than 5 percent of the portfolio may be invested in the notes of any one issuer  Securities shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO
Asset-backed securities may not exceed 20 percent of the City’s portfolio.

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Local Agency Investment Fund (LAIF)
As authorized in Government Code Section 16429.1, the City may invest in the LAIF.

The City may invest up to the maximum as permitted by the LAIF Investment Advisory Board.

Mutual Funds and Money Market Funds
As authorized in Government Code Section 53601(l), the City may invest in shares of beneficial interest issued by diversified management companies. There are a number of other qualifications and restrictions regarding these allowable investments which are outlined in section 53601(l) of the Government Code.

Purchase of mutual funds or money market mutual funds may not exceed 20 percent of the City’s portfolio. No more than 10 percent of the City’s portfolio may be invested in any one mutual fund. A thorough investigation of mutual funds and money market funds is required prior to investing, and on a continual basis.

Supranationals
As authorized in Government Code Section 53601(q), the City may invest in United States dollar-denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Securities shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO.

Purchases of supranational securities may not exceed 30 percent of the City’s portfolio.

Any State of California legislative action that further restricts allowable maturities, investment types, or percentage allocations will be incorporated into the City’s Policy and supersede any and all previous applicable language.

Joint Powers Authority (Local Government Investment Pools) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

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Prohibited Investments
As per Government Code Section 53601.6, the City shall not invest in inverse floaters, range notes, or mortgage-derived, interest-only strips, or in any security that could result in zero-interest accrual if held to maturity, except as provided in the subsequent paragraph.

Notwithstanding the prohibitions stated in the above paragraph, the City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates. Securities described in this paragraph shall remain in effect only until January 1, 2026, and as of that date is repealed.

Securities backed by the United States government that could result in a zero- or negative-interest accrual if held to maturity are permitted, in the event of, and for the duration of, a period of negative market interest rates. This provision will sunset on January 1, 2031.

IX. MATURITIES
To the extent possible, the City will attempt to match the investments with anticipated cash flow requirements. Where there is no specified maturity limitation on an investment, no investment shall be made in any security, which at the time of the investment, has a term remaining to maturity in excess of five years, unless the City Council has granted express authority to make that investment no less than three months prior to the investment.

Investment Limitations: Security purchases and holdings should be maintained within statutory limits imposed by the Government Code. The City’s Policy may be more restrictive than Government Code. Current City limits are shown below:

Sector
Sector
Limit Issuer Limit
Maturity
Limit
U.S. Treasuries 100% N/A 5 years*
Federal Agencies 100% N/A 5 years*
Municipal Obligations 30% 5% 5 years*
Bankers' Acceptances 40% 5% 180 days
Commercial Paper 40% 5% 270 397 days
Negotiable Certificates of
Deposit 30% 5% 5 years*
Deposit Placement Service 50% $250,000** 5 years
Medium-Term Notes 30% 5% 5 years*
Asset-backed Securities 20% 5% 5 years*
LAIF N/A*** N/A
Mutual Funds/Money Market
Funds 20%
10% per fund for mutual
funds only N/A
Supranationals 30% N/A 5 years*
Joint Powers Authority/LGIP 100% N/A N/A
*Maximum term unless expressly authorized by City Council. **Principal and accrued interest limit per each certificate of deposit. ***Limit set by LAIF Governing Board, not Government Code.

City of Santa Maria - 2024 2026 Investment
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X. BANKS AND QUALIFIED SECURITIES DEALERS
If a third-party investment advisor is authorized to conduct investment transactions on the City’s behalf, the investment advisor may use its own list of approved brokers/dealers and financial institutions for investment purposes. The investment advisor’s approved list must be made available to the City upon request.

For any investment transactions conducted by the Investment Officer or the Treasury Manager on behalf of the City, the Investment Officer and Treasury Manager shall comply with the following requirements:

In selecting financial institutions for the deposit or investment of City’s funds, the Investment Officer shall consider the creditworthiness of institutions. The Investment Officer shall continue to monitor financial institutions' credit characteristics and financial history throughout the period in which the City’s funds are deposited or invested.

The City shall transact business only with banks, savings and loans, and broker/dealers.

The broker/dealers should be primary dealers regularly reporting to the New York Federal Reserve Bank or regional brokers, who have complied with the City’s broker/dealer certification process. The Investment Officer will be limited to actively conducting business with no more than three brokers/dealers.

On an annual basis, the Investment Officer shall send a copy of the current Policy to all brokers/dealers approved to do business with the City. Confirmation of receipt of this Policy shall be considered evidence that the dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this Policy.

XI. PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The City will measure the portfolio’s performance against a market benchmark that is commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

XII.RISK TOLERANCE
The City recognizes that investment risks can result from issuer defaults, market price changes, or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk. Investment managers are expected to display prudence in the selection of securities as a way to minimize default risk. No individual investment transaction shall be undertaken, which jeopardizes the total capital position of the overall portfolio. The Investment Officer shall periodically establish guidelines and strategies to control risks of default, market price changes, and illiquidity.

In addition to these general policy considerations, the following specific policies will be strictly observed:

City of Santa Maria - 2024 2026 Investment
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1) All transactions will be executed on a delivery versus payment basis. 2) A competitive bid process, when practical, will be used to place all investment purchases, other than those that are classified as "new issue" securities. 3) Any State of California legislative action that further restricts allowable maturities, investment types, or percentage allocations will be incorporated into the City’s Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Officer, until the maturity date to avoid an unnecessary loss.

XIII. SAFEKEEPING AND CUSTODY
Securities purchased from brokers/dealers shall be held in a third-party custodian/safekeeping account. Said securities shall be held in a manner that establishes the governmental entity's right of ownership.

All securities owned by the governmental entity shall be held by a third party except the collateral for time deposits in banks and savings and loans. Collateral for time deposits in savings and loans is held by the Federal Home Loan Bank or an approved Agent of Depository. The collateral for time deposits in banks should be held in the entity's name in the bank's Trust Department, or alternately, in the Federal Reserve Bank.

XIV.INVESTMENT POOLS
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis.

Glossary of Investment Terms Page 1 of 4

GLOSSARY OF INVESTMENT TERMS
Annual Comprehensive Financial Report (ACFR): The official financial annual report for the City. The ACFR includes government wide financial statements, governmental fund financial statements, proprietary fund financial statements, and custodial fund financial statements prepared in conformity with government accepted accounting principles. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.

Asset-Backed Securities: Bonds created from various types of consumer debt. Returns on these securities come from customer payments on their outstanding loans. The primary types of asset-backed securities are mortgages, home equity loans, auto loans, leases, credit card receivables, and student loans.

Bond Proceeds: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These monies are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

Broker: Someone who brings buyers and sellers together and is compensated for the service.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

Commercial Paper: Short-term unsecured promissory note with a fixed maturity issued by companies to raise short-term cash.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, by buying and selling for his/her own account.

Delivery Versus Payment: There are two methods of delivery of securities: 1) delivery versus payment; and 2) delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Diversification: Dividing investment funds among a variety of security types by sector, maturity, and quality ratings offering independent returns.

Glossary of Investment Terms Page 2 of 4
Federal Home Loan Banks (FHLB): Government-sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions, and insurance companies.

Federal National Mortgage Association (FNMA): FNMA is a Federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixedrate mortgages.

Internal Controls: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurances that these objectives are met. The concept of reasonable assurance recognized that 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits require estimates and judgments by management. Internal controls should address the following points:
 Control of collusion – Collusion is a situation where two or more employees are working in conjunction to defraud the employer.
 Separation of transaction authority from accounting and record keeping – By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.  Custodial safekeeping – Securities purchased from any bank or dealer including appropriate collateral (as defined by State law) shall be placed with an independent third party for custodial safekeeping.
 Written confirmation of transactions for investments and wire transfers – Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.

Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and if a reasonable size can be done at those quotes.

Local Agency Investment Fund (LAIF): Chapter 730, Statues of 1976 of the State of California, established the LAIF. The LAIF enables local governmental agencies to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected to invest these monies with State monies as a part of the Pooled Money Investment Account. Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Treasurer. At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency’s respective amounts deposited in the LAIF and the length of time such amounts remained therein. Prior to the distribution, the State’s cost of administering the program is deducted from the earnings.

Glossary of Investment Terms Page 3 of 4
The California Government Code states that monies placed for deposit in LAIF are in trust in the custody of the State Treasurer and cannot be borrowed or be withheld from the City. Further, the right of the City to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any State official or agency based upon the State’s failure to adopt a budget by July 1 of each new fiscal year.

Local Government Investment Pool (LGIP): An investment by local governments in which their money is pooled as a method for managing local funds.

Market Risk: This is the risk that the value of a security will rise or decline as a result of changes in market conditions.

Market Value: The current price at which a security is trading and could presumably be purchased or sold at that particular point in time.

Maturity: The date upon which the principal or stated value of a financial obligation is due and payable.

Medium-Term Corporate Notes: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States, or by depository institutions licensed by the United States or any state and operating within the United States.

Money Market Mutual Fund: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers’ acceptances, and Federal funds).

Mutual Fund: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by Securities and Exchange Commission (SEC) disclosure guidelines.

Nationally Recognized Statistical Ratings Organization: (source: SEC) Credit rating agencies registered with the SEC are known as nationally recognized statistical rating organizations. As of April 13, 2012, there were ten firms registered as nationally recognized statistical rating organizations:

A.M. Best Company, Inc.

DBRS Ltd.

Egan-Jones Rating Company
Fitch, Inc.

Japan Credit Rating Agency, Ltd.

Kroll Bond Rating Agency, Inc. (f/k/a LACE Financial Corp.) Moody’s Investors Service, Inc.

Rating and Investment Information, Inc.

Realpoint LLC
Standard & Poor’s Ratings ServicesS&P Global
Glossary of Investment Terms Page 4 of 4
Negotiable Certificates of Deposit: Fixed deposit certificate that may be negotiated (traded) to a third party. The institution issuing the certificate promises to pay face value plus accrued interest at maturity or semi-annually if maturity is over one year.

Portfolio: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

Primary Dealer: A group of government securities dealers who submit daily reports of market activity and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker/dealers, banks, and a few unregulated firms.

Principal: (1) The value or par value of a debt instrument; (2) one who acts as a dealer buying and selling for his own account.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Safekeeping Service: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection and security.

Supranationals: International financial institutions that are generally established by agreements among nations, with member nations contributing capital and participating in management. Supranational bonds finance economic and infrastructure development and support environmental protection, poverty reduction, and renewable energy around the globe.

Treasury Bills: Short-term U.S. government non-interest bearing discounted debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three-month and six-month bills are weekly, while auctions of oneyear bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends.

Yield: The current rate of return on an investment security generally expressed as a percentage of the security’s current price.

ATTACHMENT C
City of Santa Maria
2026 Investment Policy
I. INTRODUCTION
It is the goal of the City of Santa Maria (City) to invest public funds in a manner that will provide maximum security, adequate liquidity, and sufficient yield, while meeting the daily cash flow demand of the City and conforming to all statutes and regulations governing the investment of public funds. The 2026 Investment Policy (Policy) identifies the formal policies and procedures that comprise good cash management and a secure short-term investment program.

III. GENERAL OBJECTIVES
The primary objectives, in priority order, of the City’s investment activities are safety, liquidity, and yield.

A. Safety: Preservation of principal is the foremost objective of the investment program.

City of Santa Maria - 2026 Investment Policy Page 2 of 11 B. Liquidity: The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets. Emphasis shall be on marketable securities with low sensitivity to market risk. A portion of the portfolio may be placed in money market mutual funds or LAIF which offer same-day liquidity for short-term funds.

Officers and employees involved in the City investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or that could impair their ability to make impartial investment decisions. City employees and investment officials shall disclose any material financial interest in financial institutions that conduct business within the jurisdiction and shall further disclose any personal financial/investment positions that could be City of Santa Maria - 2026 Investment Policy Page 3 of 11 related to the performance of the City immediately to the City Manager of Santa Maria and annually to the Fair Political Practices Commission. City employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

The investment advisor shall make all investment decisions and transactions in strict accordance with the Government Code of the State of California and this Policy.

City of Santa Maria - 2026 Investment Policy Page 4 of 11 Timely bank reconciliations will be completed to ensure proper handling of all transactions. On a monthly basis, the City’s investment portfolio and all related transactions will be reviewed and balanced to appropriate general ledger accounts by the Department of Finance.

Required elements of the monthly report:

A. Quarterly Reporting to City Council:

City of Santa Maria - 2026 Investment Policy Page 5 of 11 VIII. AUTHORIZED INVESTMENT INSTRUMENTS FOR THE CITY
The City shall be governed by the California Government Code, Sections 53600 et seq (Code). If the Code is amended to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to the changes in the revised Code, provided that the changes are not specifically prohibited by the City’s Policy. The City shall be required to present those changes in the annual review of the Policy and to incorporate the new legislation within the Policy.

The following investment instruments are authorized for purchase in accordance with the provisions of Section 53601 et seq of the California Government Code:

California and California Local Agency Municipal Obligations Obligations of the State of California or any local agency within the state as authorized in Government Code Section 53601(c) and 53601(e), including bonds payable solely out of revenues from a revenue-producing property owned, City of Santa Maria - 2026 Investment Policy Page 6 of 11 controlled, or operated by the state or any local agency or by a department, board, agency, or authority of the state or any local agency. In addition, these securities shall be rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating organization (NRSRO). Purchase of California and California local agency municipal obligations, together with other state municipal obligations, may not exceed 30 percent of the City's investment portfolio.

Purchases of commercial paper may not exceed 397 days maturity. Effective until January 1, 2026, investment in commercial paper shall not exceed 40 percent of City of Santa Maria - 2026 Investment Policy Page 7 of 11 the City’s portfolio. After January 1, 2026, investment in commercial paper shall not exceed 25 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in any one issuer’s commercial paper.

Purchases of medium-term corporate notes may not exceed 30 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in the notes of any one issuer.

City of Santa Maria - 2026 Investment Policy Page 8 of 11 Local Agency Investment Fund (LAIF)
As authorized in Government Code Section 16429.1, the City may invest in the LAIF.

The City may invest up to the maximum as permitted by the LAIF Investment Advisory Board.

Purchases of supranational securities may not exceed 30 percent of the City’s portfolio.

City of Santa Maria - 2026 Investment Policy Page 9 of 11 Prohibited Investments
As per Government Code Section 53601.6, the City shall not invest in inverse floaters, range notes, or mortgage-derived, interest-only strips, or in any security that could result in zero-interest accrual if held to maturity, except as provided in the subsequent paragraph.

Sector
Sector
Limit Issuer Limit
Maturity
Limit
U.S. Treasuries 100% N/A 5 years*
Federal Agencies 100% N/A 5 years*
Municipal Obligations 30% 5% 5 years*
Bankers' Acceptances 40% 5% 180 days
Commercial Paper 40% 5% 397 days
Negotiable Certificates of
Deposit 30% 5% 5 years*
Deposit Placement Service 50% $250,000** 5 years
Medium-Term Notes 30% 5% 5 years*
Asset-backed Securities 20% 5% 5 years*
LAIF N/A*** N/A
Mutual Funds/Money Market
Funds 20%
10% per fund for mutual
funds only N/A
Supranationals 30% N/A 5 years*
Joint Powers Authority/LGIP 100% N/A N/A
*Maximum term unless expressly authorized by City Council. **Principal and accrued interest limit per each certificate of deposit. ***Limit set by LAIF Governing Board, not Government Code.

City of Santa Maria - 2026 Investment Policy Page 10 of 11 X. BANKS AND QUALIFIED SECURITIES DEALERS
If a third-party investment advisor is authorized to conduct investment transactions on the City’s behalf, the investment advisor may use its own list of approved brokers/dealers and financial institutions for investment purposes. The investment advisor’s approved list must be made available to the City upon request.

The City shall transact business only with banks, savings and loans, and broker/dealers.

In addition to these general policy considerations, the following specific policies will be strictly observed:

City of Santa Maria - 2026 Investment Policy Page 11 of 11 1) All transactions will be executed on a delivery versus payment basis. 2) A competitive bid process, when practical, will be used to place all investment purchases, other than those that are classified as "new issue" securities. 3) Any State of California legislative action that further restricts allowable maturities, investment types, or percentage allocations will be incorporated into the City’s Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Officer, until the maturity date to avoid an unnecessary loss.