Agenda — Santa Maria City Council, August 4, 2026 (part 6 of 6)

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

ANNEXING AND AUTHORIZING THE ASSESSMENT OF

LANDSCAPE MAINTENANCE FEES TO DUDLEY HOFFMAN MORTUARY

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

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

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

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

Dudley Hoffman PD2023-0020 & U2023-0020 APN 125-200-035 Fire Crab DT2019-0002 APN 125-101-015

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

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

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

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

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

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

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

Attachment B

Page 2 of 2 ends

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

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

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

SECTION 6. The assessment for the 20 26-2027 Fiscal Year for the following Properties shall be $758.23 for commercial per APN or tenant space:

Dudley Hoffman PD2023-0020 & U2023-0020 APN 125-200-035 Fire Crab DT2019-0002 APN 125-101-015

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 4th day of August 2026

ATTEST:

Chief Deputy City Clerk

Exhibit A: Petition & Vicinity Map

Mayor

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

Exhibit A

Attachment C
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

ANNEXING AND AUTHORIZING THE ASSESSMENT OF LANDSCAPE

MAINTENANCE FEES TO WEST STOWELL DISTRIBUTION FACILITY,

ARROW TRACT, AVANTE APARTMENTS, AND BLOSSER RANCH

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

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

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

WHEREAS, a Petition Requesting Annexation into the Southwest Landscape Maintenance District w as signed by the owner (s) of the following Property and the associated Assessor’s Parcel Num bers provided to identify it as follows (Note clerical error, Stowell Distribution is in the Southwest):

W Stowell Distribution Facility, PD2024-0003 APN 117-820-012 & -013 Arrow Tract, TR2022-0001 APN 111-270-005
Avante Apartments, PD2021-0013 APN 117-770-047
Blosser Ranch, TR2019-0003 APN 117-240-050 to -060

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

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

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

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

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

2 SECTION 1. That the above recitals are true and correct; and

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

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

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

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

SECTION 6. The assessment for the 20 26-2027 Fiscal Year for the following Property shall be $569.22 commercial and 273.73 residential per APN or tenant space:

///

3 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 4th day of August 2026.

ATTEST:

Chief Deputy City Clerk

Exhibit A: Petitions & Vicinity Map

Mayor

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

Exhibit A

Attachment D

Attachment E

Attachment F

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Ramon Galo, Recreation and Parks Director

DATE: August 4, 2026

SUBJECT: Adoption of a Resolution Approving Amendment No. 2 to Agreement with JD Hummann Landscaping, Inc. for Additional for Fiscal Year 2025-26 and Fiscal Year 2026-27 Landscape Maintenance Services

Description:

The City Council will consider adopting a Resolution approving an increase to the agreement with JD Humann Landscaping, Inc. for Fiscal Years 2025-26 and 2026-27 Landscape Maintenance Services and extra services.

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

RECOMMENDATION:

1. Adopt a Resolution approving Amendment No. 2 to agreement with JD Humann Landscaping, Inc. approving an additional increase for landscape maintenance services for extra services of $195,268 for a total amount up to $ 785,268 for F iscal Years 2025-26 and 2026 -27 and approve an additional $86,000 for a total contract amount of $1,169,148 for F iscal Year 2026-27 to provide landscape services to Districts: Northwest, Northeast, Southwest and portions of South Miller / South College; and

2. Authorize the City Manager, or designee, to execute Amendment No. 2 and any other related documents necessary to implement the agreement.

BACKGROUND:

In July 2025, the City of Santa Maria entered into a professional services agreement with JD Humann Landscaping, Inc. (see Attachment B) for the provision of landscape services to various areas within the city. The scope of the agreement includes the prov ision of routine ongoing landscape services (including landscape and irrigation maintenance), and extra services to include unplanned or unanticipated landscape projects that are identified throughout the year. The agreement is for a 3-year term with an option to extend two, one-year terms. The City is currently beginning the second year of the initial 3-year term.

2 The purpose of the landscape services agreement is to ensure the efficient, routine, and standardized upkeep of public spaces. The service areas include streetside landscaping, medians, roundabouts, and other areas within specific zones or districts.

During Fiscal Year (FY) 2025-26, City staff approved projects that qualified under the Extra Services area of the agreement. The contracto r completed these projects under the direction and supervision of City staff. In May 2026 Council approved a contract amount increase of up to $590,000 to cover ongoing expenses related to Extra Services.

A recent Director’s audit revealed that the full amount of approved work was more than the May 2026 City Council contract amount approval. Approval of this item will allow the City to pay past due invoices for work already performed.

Under the Landscape Maintenance Districts policy, the City has an obl igation to provide landscape maintenance services to the City’s districts and special benefit zones. To ensure the City meets this obligation, staff recommends continuing to implement the landscape services agreement with JD Humann Landscaping, Inc. for FY 2026-27. The contract amount requested includes all areas under contract and the addition of 3 new assessed areas to be implemented upon City Council approval. The contract amount approved in July 2025 was $1,083,148 and the recommendation is to increa se the amount to $1,169,148 for FY 2026-2027 to provide landscape maintenance services to the following Districts:
a. Northwest
b. Northeast
c. Southwest
d. The following portions of South Miller / South College District i. Enos Ranch Residential Special Benefits Zone
ii. Enos Ranch Commercial Benefits Zone

DISCUSSION:

The Recreation and Parks Department’s goal is to close FY 2025-26 operations and commence FY 2026-27. To do so, staff provide the following recommendations:

As part of closing the 2025 -26 budget cycle, the Recreation and Parks Director has performed an audit, which included the review of past due and remaining invoices. The audit discovered a remaining past due amount of $195,341 for FY 2025-26. The recommendation is to increase the contract amount to $785,268 to cover the outstanding expenses and cover FY 2026-2027 invoices. The Extra services up -to contract amount will be $785,268 for FY 2025-2026 and FY 2026-2027. There is no impact to the General Fund.

To continue with contracted landscape maintenance services, staff recommend s approving a FY 2026-27 contract amount limit of $1,16 9,148 to provide landscape services to various areas, including Northwest, Northeast, Southwest, and portions of the Southeast Districts. This recommended contract amount includes services that are detailed in the scope of services found in the aforementioned agreement between the City and JD Humann Landscaping, Inc. (see Attachment C). 3 Alternative(s)
The City Council may choose to approve, not to approve, or modify the recommendations and may direct staff to return with additional information. Not approving is not recommended and would present the following alternatives:

1. Not approving Recommendation 1 would delay payment to the contractor of verified past-due invoices for services already performed during FY 2025-26; the City would also be unable to pay for unanticipated repairs or improvements to landscape districts, zones, and other areas.

2. Not approving Recommendation 2 re sults in the City’s inability to perform landscape services to the areas in question and maintain landscaped areas in a safe and aesthetically pleasing condition.

Fiscal Considerations
Approval of this item will:
 Authorize a contract amount increase of $195,268 for verified past due landscape maintenance services;
 Authorize a contract amount of $1,169,148 for FY 2026-27;

Funding for these requests will be paid through the applicable Landscape Maintenance Districts and Spec ial Benefit Zones. There is no General Fund impact associated with these actions.

Impact on the Community
Approval of this item will allow the City to satisfy its financial obligations for landscape maintenance services already performed while ensuring continued maintenance of parks, medians, streetscapes, and other landscaped public areas throughout FY 2026-27.

These services contribute to the safety, appearance, and usability of public spaces maintained through the City's Landscape Maintenance Districts and Special Benefit Zones.

ATTACHMENT(S)
A. Resolution
B. Amendment No.2 to Agreement for Professional Services – JD Humann Landscaping, Inc.

C. 2025 Professional Services Agreement with JD Humann Landscaping, Inc.

D. List of Maintenance Areas and Pricing

Attachment A

Page 1 of 3 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,
APPROVING AMENDMENT NO. 2 TO AGREEMENT WITH
JD HUMANN LANDSCAPING, INC. APPROVING AN ADDITIONAL

INCREASE FOR LANDSCAPE MAINTENANCE SERVICES FOR EXTRA
SERVICES OF $195,268 FOR A TOTAL AMOUNT UP TO $785,268 FOR FISCAL YEARS 2025-26 AND 2026-27 AND APPROVE AN ADDITIONAL $86,000 FOR A TOTAL CONTRACT AMOUNT OF $1,169,148 FOR FISCAL YEAR 2026-27 TO PROVIDE LANDSCAPE SERVICES TO DISTRICTS:

NORTHWEST, NORTHEAST, SOUTHWEST, AND PORTIONS OF SOUTH MILLER /

SOUTH COLLEGE

WHEREAS, the City of Santa Maria entered into a Professional Services Agreement with JD Humann Landscaping, Inc. in July 2025 for the provision of landscape maintenance services throughout various Landscap e Maintenance Districts and Special Benefit Zones within the City; and

WHEREAS, the agreement provides for routine landscape maintenance services, irrigation maintenance, and extra services as necessary to maintain City -owned landscaped areas; and

WHEREAS, City staff completed a review of outstanding Fiscal Year 2025 -26 invoices and determined that an additional $195, 268 is required to pay for verified landscape maintenance services previously performed by JD Humann Landscaping, Inc. and to close out the Fiscal Year (FY) 2025-26 contract; and

WHEREAS, the new up-to contract amount for Extra Services for FY 2025-26 and FY 2026-27 is $ 785,268 to address unforeseen maintenance needs, irrigation repairs, storm damage, rehabilitation of landscaped areas , replacement of plant materials, and other Council-directed landscape improvements; and

WHEREAS, Staff recommends adding an additional $86,000 to the Fiscal Year 2026-27 contract authority for a total amount of $ 1,169,148 for routine landscape maintenance services within the Northwest, Northeast, Southwest, and portions of the Southeast Landscape Maintenance Districts, including the Enos Ranch Residential Special Benefit Zone, and Enos Ranch Commercial Special Benefit Zone; and

WHEREAS, staff has determined that additional contract authority is necessary to address unforeseen landscape maintenance needs, irrigation repairs, plant replacement, storm-related damage, rehabilitation of aging landscape improvements, and other maintenance activities necessary to preserve City -maintained landscaped areas throughout the remainder of Fiscal Year 2026-27; and

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Attachment A

Page 2 of 3 ends

WHEREAS, funding for these contract amounts is available through the applicable Landscape Maintenance Districts and Special Benefit Zones, and there is no impact to the City's General Fund; and

WHEREAS, the City Council finds that approval of these contract amounts is in the best interest of the City and will ensure the continued maintenance, safety, and appearance of public landscaped areas while allowing the City to satisfy its contractual obligations.

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

SECTION 1. The City Council approves an amendment to the contract for an increase of $195,268 to the FY 2025-26 Landscape Maintenance Services Contract with JD Humann Landscaping, Inc. for verified landscape maintenance services previously performed and FY 2026-27 Extra Services for an amount up to $785,268.

SECTION 2. The City Council approves a Fiscal Year 2026 -27 contract amount of $ 1,169,148 with JD Humann Landscaping, Inc. for routine landscape maintenance services within the following Landscape Maintenance Districts and Special Benefit Zones:
 Northwest District;
 Northeast District;
 Southwest District;
 Portions of the South Miller / South College District, including:
o Enos Ranch Residential Special Benefit Zone; and
o Enos Ranch Commercial Special Benefit Zone.

SECTION 3. Authorize the City Manager, or designee, to execute Amendment No. 2 and any other related documents necessary to implement the agreement.

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

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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 4th day of August 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

Attachment B
Atty. Rev. 2022

AMENDMENT NO. 2 TO AGREEMENT FOR PROFESSIONAL SERVICES

This Amendment No. 2 to Agreement for Professional Services between J.D. Humann Landscaping, Inc., a California Corporation (“Contractor”) and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

1. J.D. Humann submitted a proposal (RP-2025-01) that the City deemed acceptable and has extensive knowledge and is qualified to provide the services needed and is willing to provide those services on mutually agreeable terms; and

2. The parties entered into an Agreement for Professional Services on July 1, 2025; and

3. On May 5, 2026 , J.D. Humann was authorized to provide Extra Services of up to $450,000 per year under Exhibit “C” of the agreement. Staff directed J.D. Humann to perform approved landscape renovations throughout the City Landscape Maintenance Districts. This work has been performed and accepted by City staff; and

4. Additional Extra Services authorized in Exhibit C are necessary during the remainder of Fiscal Year 2025 -2026 and during Fiscal Year 2026 -2027 in the amount of $195,268; and

5. The City will continue to implement the landscape services contract with JD Humann landscaping, Inc. for Fiscal year 2026-2027 and will add newly assessed district and zones to the scope of services; and

6. To meet this obligation with added areas, the city needs to increase the base contract amount by $86,000 for Fiscal Year 2026-2027

7. Appropriate funds are available from the Landscape Districts accounts and there is no impact to the General Fund; and

NOW, THEREFORE, IT IS AGREED:

1. The not-to-exceed amount of $450,000 for Exhibit C Extra Work Services for Contract RP- 2025-01 is increased to $645,268 for Fiscal Year 2025-2026 and Fiscal Year 2026-2027.

2. The base contract amount of $1,083,148 for Contract RP-2025-01 is increased to $1,169,148 for Fiscal Year 2026-2027.

3. The City Manager or designee is authorized to execute this agreement.

4. All other terms of the Agreement remain unchanged.

Attachment B
Atty. Rev. 2022

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

CONTRACTOR CITY OF SANTA MARIA
J.D. Humann Landscaping, Inc. Recreation and Parks Department Attn: John Humann Attn: Ramon Galo, Director
201 W. Broadway, Suite 122 615 S. McClelland
Santa Maria, CA 93457 Santa Maria, CA 93454

_________________________ __________________________
By: By:

APPROVED AS TO FORM:

______________________
City Attorney

______________________
Risk Manager

Attachment D

ATTACHMENT A - FEE/SITE SHEET

NORTHWEST LANDSCAPE MAINTENANCE

DISTRICT
COST
PER SQ.

FT.

TOTAL SQ.

FT.

ANNUAL COST
1 Hidden Pines - easement frontage 400-600 Hidden Pines Way $ 0.21 21,011 $ 4,412.31 2 Oak Valley - Taylor frontage (does not include school); Rancho Verde, Via Establo to Blosser, North Railroad at the 1900 block between Rancho Verde and Taylor

$ 0.21
97,275 $ 20,427.75
3 Blosser Medians - 100 North Blosser Road and 1100 West Main Street

$ 0.21
2,392 $ 502.32
4 Villas de la Sara - West Morrison and Oakley Avenue $ 0.21 6,340 $ 1,331.40 5 Riverside Estates - frontage on Preisker Lane and Hidden Pines W, $ 0.21 8,412 $ 1,766.52 6 Parkside - frontage on Preisker, parking lot and playground $ 0.21 9,912 $ 2,081.52 7 Parkside - grassy basin at Portland Drive and Preisker $ 0.21 20,776 $ 4,362.96 8 100 West Main Street - median $ 0.21 1,944 $ 408.24
9 Railroad Medians-Paved median $ 0.21 600 $ 126.000
10 Cook Street Annex & Fire Station 1 $ 0.21 9,945 $ 2,088.45 11 Bradley Channel Multi-Purpose Trail - from Railroad to Preisker Park-all paved

$ 0.21
14,000 $ 2,940.00
12 Sanchez School - area from black rod iron frence to 3 feet east of the sidewalk on Depot

$ 0.21
12,120 $ 2,545.20
13 Blosser/ Donovan Median - on Blosser south of Donovan- paved median

$ 0.21
1,610 $ 338.10
14 Southeast corner of Depot and Morrison $ 0.21 1,500 $ 315.00 15 Downtown medians - Broadway Medians from Fesler Street going south to the front of the Library; East and West Cook Street Medians; South Pine Street from Main Street to Cook Street; East Main Street Medians; 100 North McClelland Median; South Miller Medians from Main Street to Cook Street

$ 0.21
21,022 $ 4,414.62
16 TCW - mall perimeter, some interior, and Ruffoni parking lot including Heritage Walk

$ 0.21
88,352 $ 18,553.92
17 TCW-lnternal planters $ 0.21 30,500 $ 6,405.00
18 Fire Station #3- Preisker Lane $ 0.21 38,504 $ 8,085.84 19 Machado Plaza $ 0.21 21,336 $ 4,480.56
20 Preisker Parking-Addendum #4 $ 0.21 28,000 $ 5,880.00 TOTAL NORTHWEST $ 0.21 435,551 $ 91,465.71

NORTHWEST SPECIAL BENEFIT ZONES (SBZ} COST
PER SQ.

FT.

TOTAL SQ.

FT.

ANNUAL COST
a. Cherry Blossom SBZ - frontage on Railroad and Hidden Pines including the medians and the pedestrian access on Railroad

$ 0.21
51,900 $ 10,899.00
CHERRY BLOSSOM TOTAL $ 0.21 51,900 $ 10,899.00
Attachment D
b. North Preisker Ranch SBZ � frontage on Atlantic, Blosser (both sides), Canal (both sides), Railroad (up to wall), Boxcar and Caboose, path on Eagleton, both roundabouts and all entry

$ 0.21
243,867 $ 51,212.07
NORTH PREISKER RANCH TOTAL $ 0.21 243,867 $ 51,212.07
NORTHWEST TOTAL COST $ 0.21 731,318 $ 153,576.78
Attachment D

ATTACHMENT B - FEE/SITE SHEET

NORTHEAST LANDSCAPE MAINTENANCE

DISTRICT
COST
PER SQ.

FT.

TOTAL
SQ. FT.

ANNUAL
COST
1 Emerald Park - shrubs on College near Donovan $ 0.21 8,893 $ 1,867.53 2 Emerald Basin - Grassy basin on College near Donovan $ 0.21 11,547 $ 2,424.87 3 Donovan Medians $ 0.21 9,504 $ 1,995.84
4 Riverside Terrace - 1800 block of Bayview Drive, open space on Seaward and around Basin on Kathryn

$ 0.21
134,777 $ 28,303.17
5 Riverside - Grassy basin on Kathryn $ 0.21 24,686 $ 5,184.06 6 Shields/ Cochiolo - 1600 block Suey Road - frontage on Suey and Donovan, frontage on Antone, Floyd Court

$ 0.21
61,476 $ 12,909.96
7 Suey Basin - Grassy basin on Suey near Antone $ 0.21 14,774 $ 3,102.54 8 Sierra Vista - frontage on Panther and Centennial, basin at the corner of Panter and Centennial and breezeway off Mammoth

$ 0.21
40,000 $ 8,400.000
9 Rowland Estates - Shrubs and playground $ 0.21 12,332 $ 2,589.72 10 Rowland Basin- includes weedy basin $ 0.21 4,656 $ 977.76 11 Canyon Homes - 1400 East Donovan Road enterance $ 0.21 3,764 $ 790.44 12 Olive Garden - 1200 South Bradley median $ 0.21 2,900 $ 609.00 13 Hancock College - 800 South Bradley median $ 0.21 3,064 $ 643.44 14 Bradley Easement - south of Main Street to Jones Street (Deleted 14,718 sq ft)

$ 0.21

14,718

15 Transit Center $ 0.21 70,993 $ 14,908.53
16 Hancock Terrace Bike Path-Miller to College $ 0.21 30,000 $ 6,300.000 17 800 E Jones median- Paved island $ 0.21 462 $ 97.02
18 Pepper Tree Medians - north of Donovan Road on Broadway $ 0.21 3,456 $ 725.76 19 Stowell Road Easement - east of Miller Street $ 0.21 13,492 $ 2,833.32 20 Alvin Overpass $ 0.21 59,513 $ 12,497.73
21 North Bradley Ivy - Fesler Junior High easement area $ 0.21 15,493 $ 3,253.53 22 Donovan/Miller Median $ 0.21 10,310 $ 2,165.10
23 Via Rubio - Jewel Street only $ 0.21 4,836 $ 1,015.56 24 Donovan Overpass $ 0.21 67,751 $ 14,227.71
25 Pepperwood Median $ 0.21 1,819 $ 381.99
26 East Main Street & 101-weedy shoulder $ 0.21 7,301 $ 1,533.21 27 Bradley at Elks $ 0.21 22,310 $ 4,685.10
Attachment D
28 Downtown medians - Broadway Medians from Fesler Street going south to the front of the Library; East and West Cook Street Medians; South Pine Street from Main Street to Cook Street; East Main Street Medians; 100 North McClelland Median; South Miller Medians from Main Street to Cook Street

$ 0.21
21,022 $ 4,414.62
29 TCE - mall perimeter includes bus turnout, theater, Macy's parking lot and pocket park at Main & Broadway

$ 0.21
186,393 $ 39,142.53
30 TCE- Sears parking Lot $ 0.21 35,290 $ 7,410.90
31 Fire Station # 5 $ 0.21 32,997 $ 6,929.37
32 N Macy’s Lawn $0.21 3,840
TOTAL NORTHEAST $ 0.21 934,369 $ 196,217.49

NORTHEAST SPECIAL BENEFIT ZONES
(SBZ)
COST
PER SQ.

FT.

TOTAL SQ.

FT.

ANNUAL
COST
a. Donovan Estates SBZ - includes frontage, basin, tot lot and emptying trash cans
$ 0.21 25,586 $ 5,373.06
Donovan Estates Basin- includes grassy basin $ 0.21 11,652 $ 2,446.92 DONOVAN ESTATES TOTAL $ 0.21 37,238 $ 7,819.98
b. Rivergate Roemer SBZ- includes all of River Oaks North, College Estates, and Princess Estates easement and medians (Seaward, Paden, Carlott, Borges, the Bradely Channel and the walled area behind the homes on Mariah)
$ 0.21 163,936 $ 34,426.56
RIVERGATE ROEMER TOTAL $ 0.21 163,936 $ 34,426.56
C. Suey/Donovan Median SBZ - on Donovan between Suey and Suey Crossing
$ 0.21 33,725 $ 7,082.25
DONOVAN/SUEY MEDIAN TOTAL $ 0.21 33,725 $ 7,082.25
d. La Ventana SBZ - includes frontage on Main Street, both sides of Panther, both sides of Panter Drive to Willingham, Dressler and shrub portion of basin
$ 0.21 106,042 $ 22,268.82

La Ventana Basin- includes weedy basin
$ 0.21 45,112 $ 9,473.52
LA VENTANA TOTAL $ 0.21 151,154 $ 31,742.34
NORTHEAST TOTAL COST $ 0.21 1,320,422 $ 277,288.62
Attachment D

ATTACHMENT C - FEE/SITE SHEET

SOUTHWEST LANDSCAPE MAINTENANCE

DISTRICT
COST
PER SQ.

FT.

TOTAL
SQ. FT. ANNUAL
COST
1 Terrace Park - 500 to 600 West Carmen Lane. This includes the frontage on Carmen, both sides of Depot and the slope at the end of Depot but not the area that extends behind the homes it is the resposibility of the HOA.
$ 0.21 14,401 $ 3,024.21
2 Fire Station II - 400 West Carmen Lane frontage and interior, including easement on South Thornburg Street & slope
$ 0.21 7,631 $ 1,602.51
3 West Betteravia Median - 100 block West Betteravia Road $ 0.21 1,200 $ 252.000 4 Country Club Village Ill - frontage on West McCoy Lane, entry medians, La Costa Basin/Marilyn Stanley Park, La Costa
Breezeway - across from the basin/park site - breezeway off Castlerock leading to Hagerman bike trail
$ 0.21 135,986 $ 28,557.06
5 Foxenwoods County Club Estates - 800 to 1100 West McCoy Lane $ 0.21 47,401 $ 9,954.21 6 Santa Barbara Reasearch Median - median on South Blosser Road $ 0.21 2,392 $ 502.32 7 Skyway Drive Medians - all medians on Skyway Drive $ 0.21 104,031 $ 21,846.51 8 Battles Bike Path - west of Broadway $ 0.21 14,000 $ 2,940.00 9 Santa Maria Police Department $ 0.21 10,750 $ 2,257.50 10 SMAT Station $ 0.21 32,715 $ 6,870.15
11 Blending Station - Fairway and Skyway Drive $ 0.21 1,940 $ 407.40 12 Paseo del Sol - frontages on South Westgate, South A, Carmen and West Via Rosa, and medians on Betteravia
$ 0.21 56,103 $ 11,781.63
13 Paseo del Sol Basin- at Carmen and A Street (empty trash cans) $ 0.21 45,572 $ 9,570.12 14 Hagerman Bike Path - west of Hagerman Softball Complex- paved $ 0.21 68,800 $ 14,448.000 15 Westridge - frontage and median on Carmen and basin/playground $ 0.21 44,613 $ 9,368.730 16 Westridge Basin- along Via Rosa $ 0.21 37,240 $ 7,820.400 17 Skyway and Foster Road Bike Path- paved path $ ,0.21 106,984 $ 22,466.640 18 Medians on Betteravia east and west of Blosser $ 0.21 9,968 $ 2,093.280 19 Blosser/Stowell Medians-Paved medians $ 0.21 5,104 $ 1,071.840 20 South of Stowell to Santa Maria Way $ 0.21 55,709 $ 11,698.89 21 Parkland Cottages - McCoy frontage $ 0.21 10,943 $ 2,298.030 22 Union Valley Parkway $ 0.21 265,000 $ 55,650.000
23 Union Valley Open Space $ 0.21 40,075 $ 8,415.750
24 Foxenwoods Estates $ 0.21 30,000 $ 6,300.000
25 VTC Frontage $ 0.21 11,076 $ 2,325.96
26 Dal Porto $ 0.21 3,006 $ 631.26
TOTAL SOUTHWEST $ 0.21 1,162,640 $ 244,154.40
Attachment D

SOUTHWEST SPECIAL BENEFIT ZONES
{SBZ)
COST
PER SQ.

FT.

TOTAL SQ.

FT.

ANNUAL
COST
a. Westgate Ranch SBZ - frontage along Battles, A Street, Westgate, Carmen. Sonya and Blosser, medians on Carmen and the roundabouts by the school and both multi-purpose trails and parkways along Park & in front of building
$ 0.21 367,536 $ 77,182.56
WESTGATE RANCH TOTAL $ 0.21 367,536 $ 77,182.56
b. Coyway SBZ - on the corner of w. McCoy and Professional Parkway
$ 0.21 21,726 $ 4,562.46
Coyway Basin-- Grassy basin at W. McCoy and Professional Parkway

$ 0.21
13,349 $ 2,803.29
COYWAY BASIN TOTAL $ 0.21 35,075 $ 7,365.75
C. Cherrywood SBZ - Frontage on Carmen, Depot, Sonya and Thornburg, pathway on Flora and the pocket park on Thornburg $ 0.21 22,151 $ 4,651.71
CHERRYWOOD TOTAL $ 0.21 22,151 $ 4,651.71
d. Acquistapace SBZ- limits are frontage of Blosser, Sonya, Carmen and Western both sides of pathway, Biscayne and Pergola; Blosser median and frontage of Carmen open space
$ 0.21 129,217 $ 27,135.570
Sonya Basin- Grassy basin along Sonya $ 0.21 268,935 $ 56,476.350 Aquistapace Park- Park bordered by Western, Sonya, the basin and school
$ 0.21 63,314 $ 13,295.940
ACQUISTAPACE TOTAL $ 0.21 461,466 $ 96,907.86
e. Rose Garden Village SBZ (Estates at Pacific Crest) $ 0.21 310,157 $ 65,132.97 Centennial Garden- Corner of Battles & Depot $ 0.21 64,874 $ 13,623.54 ROSE GARDEN VILLAGE TOTAL $ 0.21 375,031 $ 78,756.51
f. Village at Westgate Ranch SBZ- frontages of La Brea, Sonya, Marsala,Westgate, and Battles to A Street
$ 0.21 345,107 $ 72,472.47
Battles linear basin bottom- weedy ditch from Blosser to county flood control basin

$ 0.21
92,529 $ 19,431.09
Blosser Median- Blosser from La Brea to Battles
$ 0.21
15,079 $ 3,166.59
VILLAGE AT WESTGATE RANCH TOTAL $ 0.21 452,715 $ 95,070.15 g. C-4 Development (Basin at McCoy) $ 0.21 32,609 $ 6,847.89 C-4 DEVELOPMENT TOTAL $ 0.21 32,609 $ 6,847.89
h. Betteravia Plaza SBZ- Carmen, Betteravia, and Blosser $ 0.21 222,048 $ 46,630.08 BETTERAVIA PLAZA TOTAL $ 0.21 222,048 $ 46,630.08
SOUTHWEST TOTAL COST $ 0.21 3,131,271 $ 657,566.91
Attachment D

ATTACHMENT D - FEE/SITE SHEET

SOUTHEAST LANDSCAPE MAINTENANCE

DISTRICT

SOUTHEAST SPECIAL BENEFIT ZONES
(SBZ)
COST
PER SQ.

FT.

TOTAL SQ.

FT.

ANNUAL
COST
d. ENOS RANCH SBZ- The north side of Betteravia Rd, both sides of Bradley and Meehan to Shepard. The east side of Shepard and of College down to the basin. Coast Hills parcel and HWY 101 and Betteravia Road off-ramp-North
$ 0.21 148,452 $ 31,174.92
Enos Ranch Basin-Grassy Basin along S. College Rd. $ 0.21 26,000 $ 5,460.00 Enos@ 101 $ 0.21 95,105 $ 19,972.05
Enos Ranch Japanese Community Center $ 0.21 105,547 $22,164.87 Home Motors Frontage- Battles bike path by car dealer $ 0.21 7,324 $ 1,538.04 ENOS RANCH TOTAL $ 0.21 382,428 $ 80,309.88
SOUTHEAST TOTAL COST $ 0.21 382,428 $ 80,309.88

Attachment D

SUMMARY

DISTRICT AMOUNT
Northwest District $ 153,576.78
Northeast District $ 277,288.62
Southwest District $ 657,566.91
Southeast District $ 80,309.88
TOTAL $ 1,168,742.19

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Michelle Ruiz, Interim Director of Utilities

DATE: August 4, 2026

SUBJECT: Adoption of a Resolution Approving an Agreement with Tempus for Electronic Waste Processing and Recycling

Description:

The City Council will consider adopting a Resolution approving an agreement with Tempus for Electronic Waste Processing and Recycling.

RECOMMENDATION:

1. Adopt a Resolution approving an agreement with Tempus for Ele ctronic Waste Processing and Recycling; and

2. Authorize the City Manager , or designee, to execute agreement and any future modifications or extensions consistent with the terms of the agreement, or cancelling the agreement, if determined to be in the City’s best interest.

BACKGROUND:

The City operates an electronic waste (E -Waste) recycling program at the Santa Maria Regional Landfill (SMRL) Recycling Park to provide the community with a convenient and safe option for disposing of electronic materials.

The City currently contracts with Tempus to provide collection containers, transportation, processing, and reporting services for the program, which costs the SMRL approximately $11,000 annually. Tempus has proposed a new, no-cost multi-year agreement that would continue existing E -Waste collection and processing services , while providing compensation to the City for eligible E-Waste materials.

If approved, the City will terminate the existing contract coinciding with implementation of the new agreement.

DISCUSSION:

Under the terms of the proposed agreement (Attachment B) , Tempus will continue providing collection containers, transportation, processing, and reporting services necessary to support E-Waste operations, at no cost to the City. Hauling fees of $300 per 2 container pickup would be eliminated and instead Tempus would provide compensation to the SMRL for eligible E-Waste materials accepted under the agreement.

The proposed agreement presents a unique opportunity to maintain the City's existing E- Waste recycling program, while generating revenue from materials currently collected and recycled through the program.

Alternatives
The City Council may:

1. Direct staff to negotiate alternative terms. This is not recommended because although the agreement is currently in draft form, it is substantially complete and reflects terms that are financially and operationally advantageous to the City.

Additional revisions are not anticipated to provide further benefit and would delay implementation of the improved arrangement.

2. Decline to appr ove the agreement and continue operating under the existing service arrangement. This is not recommended because the current arrangement costs the City approximately $11,000 annually in hauling costs and does not provide compensation for eligible E‑ Waste materials.

Fiscal Considerations
The proposed agreement is expected to generate a positive fiscal impact by eliminating current hauling costs and providing revenue from eligible E ‑ Waste materials collected through the Recycling Park. If this agreement had been in place during 2025, the City would have recognized approximately $65,000 in revenue. Actual revenues will vary based on material volumes and market conditions; however, the proposed agreement helps to offset the costs of operating and administering the SMRL’s E ‑ Waste recycling program.

Impact on the Community
This arrangement allows the City to maintain existing public service without reducing service levels or increasing costs for SMRL customers. E-Waste is currently accepted at no charge, and the proposed agreement does not change existing disposal operations.

ATTACHMENT(S)
A. Resolution
B. Agreement-Electronic Waste Processing and Recycling

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

APPROVING AN AGREEMENT WITH TEMPUS FOR

ELECTRONIC WASTE PROCESSING AND RECYCLING

WHEREAS, the City of Santa Maria operates an Electronic Waste recycling program at the Santa Maria Regional Landfill Recycling Park to provide residents and businesses with a convenient and safe means of recycling electronic materials; and

WHEREAS, Tempus currently provides Electronic Waste collection, transportation, processing, and reporting services for the City's Electronic Waste recycling program; and

WHEREAS, Tempus has proposed a new agreement that will continue existing Electronic Waste services while eliminating hauling costs and providing compensation to the City for eligible Electronic Waste materials collected through the program; and

WHEREAS, entering into a new Electronic Waste Processing Agreement with Tempus is in the best interest of the City because it maintains existing recycling services, supports ongoing waste diversion and resource recovery objectives, and is expected to provide positive fiscal benefit s through avoided costs and revenue generated from collected materials.

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

SECTION 1. Authorizes the City Manager, or designee, to execute agreement with Tempus for Electronic Waste Processing and Recycling; and

SECTION 2. Execute any future modifications or extensions consistent with the terms of the agreement, or cancelling the agreement, if determined to be in the City’s best interest; 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.

///

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 4th day of August 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

Atty. Rev. 2026 Page 1 of 14

ELECTRONIC WASTE PROCESSING

AND RECYCLING AGREEMENT

This Agreement is made on July 1, 2026, by and between FC Management Services dba Tempus, a California S-Corporation (“Contractor”) and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

WHEREAS, the City of Santa Maria (“City”) operates an Electronic Waste (“E -Waste”) recycling program at the Santa Maria Regional Landfill Recycling Park to provide residents and businesses with safe and convenient recycling opportunities; and

WHEREAS, the City desires to ensure the continued collection, transportation, processing, and recycling of E-Waste materials in a manner that complies with all applicable federal and State of California regulations; and

WHEREAS, Contractor has experience and qualifications in the collection, transportation, processing, and recycling of E-Waste materials, and has previously provided such services for the City; and

WHEREAS, Contractor has proposed to continue providing E -Waste processing and related services for the City, and to compensate the City for eligible E-Waste materials received through the City’s recycling program; and

WHEREAS, entering into this Electronic Waste Processing and Recycling Agreement (“Agreement”) will support the City’s waste diversion and resource recovery objectives, while providing positive fiscal benefits through avoided hauling and processing costs and revenue from recyclable materials; and

WHEREAS, the City has determined that entering into this Agreement with Contractor is in the best interest of the City and its residents.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01. Term and Termination. The term of this Agreement begins on the first date written above and ends at 11:59 p.m. on June 30, 2027, with options for up to three additional one-year extension terms by mutual consent of the parties. This Agreement may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state or federal law. Termination is effective 14 days after deposit of notice as specified in this Agreement.

2.02. Definitions. Definitions used throughout this Agreement are listed in Exhibit A.

2.03. Services to be Performed. Contractor shall determine the method, details, and means of providing services required by the City. More specifically, Contractor agrees to perform the specific services listed in Exhibit B.

Attachment B
Atty. Rev. 2026 Page 2 of 14

2.04. City’s Duties. City’s duties under this Agreement are to cooperate with Contractor in the performance of the Agreement as listed in Exhibit B.

2.05 . Payment to City Payment terms under this Agreement are listed in Exhibit C.

2.06 . Insurance. Contractor shall provide insurance as listed in Exhibit D.

2.07. Prevailing Wage. Where applicable, Contractor shall follow the prevailing wage requirements listed in Exhibit E and applicable law.

2.08. Exhibits. Exhibits A, B, C, D, and E are attached and incorporated.

3. Contractor’s Obligations.

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

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

3.03. Status. Contractor (including its employees) is an independent contractor. No employer/employee relationship exists between Contractor and the City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City. The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement.

3.04. Indemnification. To the fullest extent permitted by law, the Contractor shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Contractor. The provisions of this paragraph survive completion of the services or the termination of this Agreement. The provisions of this Section are not limited by the provisions of the Section relating to insurance.

4. Miscellaneous

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

To City: To Contractor:

City of Santa Maria FC Management Services dba Tempus
Utilities Department Attn: Peter DiPasquale / Jennifer Blair Attn: Contracts Manager 2001 Anchor Court
2065 East Main Street Suite B
Santa Maria, CA 93454 Newbury Park, CA 91320

If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this Agreement shall be effective five (5) days after Atty. Rev. 2026 Page 3 of 14

deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

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

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

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

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

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

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

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

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

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

Further requirements are attached as Exhibit E.

///

Atty. Rev. 2026 Page 4 of 14

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

“Contractor” “City”

TEMPUS CITY OF SANTA MARIA

By: By:

FULTON CONNOR SHAD S. SPRINGER, P.E., MPA
President Director of Utilities

By:

COSME FAGUNDO
Secretary
ATTEST

By:

DONNA G. SCHWARTZ
Chief Deputy City Clerk

APPROVED AS TO FORM

Risk Manager

City Attorney

Atty. Rev. 2026 Page 5 of 14

EXHIBIT A

DEFINITIONS

1. All-In-One Computers: Integrated desktop computing devices where the display and computer components are housed within a single unit, including but not limited to iMacs, Dell/HP/Lenovo all-in-one desktops, touchscreen all -in-one PCs, and similar integrated computer systems. Units may include working, non-working, damaged, incomplete, or end- of-life devices unless otherwise specified.

2. Cathode Ray Tube (CRT): Glass video display component of an electronic device (usually a television or computer monitor). Units may include working, non- working, damaged, incomplete, or end-of-life devices unless otherwise specified.

3. Liquid Crystal Display (LCD): Flat-panel display or other electronically modulated optical device that uses the light-modulating properties of liquid crystals combined with polarizers to display information. Units may include working, non-working, damaged, incomplete, or end-of-life devices unless otherwise specified.

4. Test Equipment: Electronic, electrical, telecom, RF, laboratory, industrial, or diagnostic equipment used for testing, measuring, monitoring, calibration, validation, or analysis. This includes, but is not limited to, oscilloscopes, spectrum analyzers, signal generators, network analyzers, multimeters, power supplies, cable testers, fiber testers, calibration devices, and similar bench, field, or laboratory test instruments. Units may include working, non-working, damaged, incomplete, or end-of-life devices unless otherwise specified.

Atty. Rev. 2026 Page 6 of 14

EXHIBIT B

SERVICES TO BE PERFORMED
(A) CONTRACTOR

1. Contractor shall provide designated E-Waste containers for the collection of E-Waste onsite at the Santa Maria Regional Landfill (SMRL) Recycling Park (RP). The containers must provide sufficient volume (usually two containers onsite at a time) to continuously accept E-Waste from customers during SMRL operating days.

2. Contractor shall arrange for full containers to be picked up within three operating days of a pickup request made by the City.

3. Contractor will be responsible for all container hauling logistics, including carrier selection and arranging backup hauling, if needed. Contractor will ensure any changes relating to carrier selection will not affect the City’s E -Waste collection program or container setup.

4. Contractor shall process E-Waste collected in the designated E-Waste containers at the RP. During the term of the agreement, Contractor will not process the accepted E-Waste in a way that jeopardizes the City’s diversion goals as related to Assembly Bill 939 or the City’s compliance with the California Electronic Waste Recycling Act of 2003.

5. Contractor shall provide standard monthly reports within 45 days of the close of the reporting period (month). The standard monthly reports will include the following:
a. Tonnage of each material type
b. Tonnage of residual
c. Rate per material type

6. In addition to the standard monthly reports, Contractor shall provide the following data:
a. By January 15 annually, report for prior calendar year (January 1-December 31):
i. Count of all CRT E-Waste;
ii. Pounds of all CRT E-Waste; and
iii. Pounds of all Non-CRT E-Waste.
b. By August 15 annually, report for prior fiscal year (July 1-June 30):
i. Pounds of all Covered Electronic Devices; and
ii. Pounds of all other/Non-Covered Electronic Devices.

7. Contractor is not responsible for hazardous or excluded materials outside the accepted E-Waste material classes.

8. Contractor shall schedule and participate in an annual meeting to review the City’s E- Waste program.

9. In addition to the City’s standard insurance requirements for Contractor, Contractor shall also provide a valid and conforming certificate of insurance for the carrier that will haul E-Waste containers from the SMRL RP offsite.

10. Contractor shall maintain regular communication and coordination with City as mutually agreed upon.

(B) CITY

1. City shall provide E-Waste brought to SMRL RP.

2. City shall arrange for E-Waste brought to the RP to be loaded into onsite Contractor’s onsite containers.

3. City shall review all documents provided by Contractor.

4. City shall attend meeting with Contractor.

Atty. Rev. 2026 Page 7 of 14

5. City shall administrate contracts.

6. City shall process fees as submitted by the Contractor following approval.

7. City shall maintain regular communication and coordination with Contractor as mutually agreed upon.

Atty. Rev. 2026 Page 8 of 14

EXHIBIT C

PAYMENT TO CITY

Contractor shall remit payment to the City based on material class and rate per pound, to be submitted with the monthly report submittals detailed in Exhibit B Section A-5.

Material Class Rate Per Pound
All-In-One Computers $0.25
CRT $0.40
Desktops $0.25
Laptops $0.40
LCD $0.40
Servers $0.40
Test Equipment $0.20

The City and Contractor acknowledge that no single public index represents e-waste market value due to the mixed composition of electronic scrap.

The Rate Per Pound for each material category was initially established based on the City’s three-year account history (including volumes, material mix, and cost-bearing items) and by referencing current and historical Western U.S./California electronic scrap market data from sources such as Fastmarkets/AMM, Argus Metals, ScrapMonster, downstream processor pricing, and relevant base and precious metal markets.

The Parties agree to review and negotiate in good faith updates to these rates each March for the term of the Agreement, taking into consideration changes in material composition, downstream processing costs, and prevailing electronic scrap market conditions.

Atty. Rev. 2026 Page 9 of 14

EXHIBIT D

INSURANCE REQUIREMENTS

Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her agents, representatives, or employees. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor.

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

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

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

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

4. Errors and Omissions liability insurance appropriate to the Contractor’s profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance
Contractor shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separatel y to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

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

3. Workers’ Compensation: Statutory limits.

Atty. Rev. 2026 Page 10 of 14

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

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

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

C. Self-insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

D. Other Insurance Provisions
The liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this Agreement to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

4. Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims-made coverage:

Atty. Rev. 2026 Page 11 of 14

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

E. Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances
The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Atty. Rev. 2026 Page 12 of 14

EXHIBIT E

PREVAILING WAGE REQUIREMENTS FOR MAINTENANCE WORK, DESIGN AND

PRECONSTRUCTION PHASES OF CONSTRUCTION, AND INSTALLATIONS

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

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

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

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

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

1.2. The wage rates determined by the DIR refer to expiration dates. If the published wage rate does not refer to a predetermined wage rate to be paid after the expiration date, then the published rate of wage shall be in effect for the life of this Agreement. If the published wage rate refers to a predetermined wage rate to become effective upon expiration of the published wage rate Atty. Rev. 2026 Page 13 of 14

and the predetermined wage rate is on file with the DIR, such predetermined wage rate shall become effective on the date following the expiration date and shall apply to this Agreement in the same manner as if it had been published in said publication. If the predetermined wage rate refers to one or more additional expiration dates with additional predetermined wage rates, which expiration dates occur during the life of this Agreement, each successive predetermined wage rate shall apply to this Agreement on the date following the expiration date of the previous wage rate. If the last of such predetermined wage rates expires during the life of this Agreement, such wage rate shall apply to the balance of the Agreement.

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

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

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

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

6. Required Provisions for Subcontracts. The Contractor shall include, at a minimum, a copy of the following provisions in any contract they enter into with a subcontractor:

California Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861.

Atty. Rev. 2026 Page 14 of 14

7. Labor Code Section 1861 Certification. In accordance with California Labor Code section 3700, the Contractor is required to secure the payment of compensation of its employees. By signing the Agreement, to which this is an exhibit, the Contractor certifies that: “I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”

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

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

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

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Shad S. Springer, Director of Utilities

DATE: August 4, 2026

SUBJECT: Adoption of a Resolution Approving a Surplus Water Transfer Agreement with the Central Coast Water Authority

Description:

The City Council will consider adopting a Resolution approving the execution and implementation of a Surplus Water Transfer Agreement with the Central Coast Water Authority for 2026.

Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines.

RECOMMENDATION:

1. Adopt a Resolution authorizing the City Manager, or designee, to execute a Surplus Water Transfer Agreement, and any related documents necessary, with the Central Coast Water Authority, in substantially the same form as presented, for the transfer and sale of up to 5,000 acre-feet of surplus State Water; and

2. Take all actions necessary to implement the agreement and complete the transfer consistent with the terms approved by said Resolution.

BACKGROUND:

The Central Coast Water Authority (CCWA) was formed by its member agencies , including the City of Santa Maria, to finance, construct, operate, and maintain the facilities that deliver State Water Project supplies to participating agencies on the Central Coast.

The City of Santa Maria (City) has received State Water through CCWA since 1997.

Imported State Water is blended with local groundwater to impro ve water quality, supplement local groundwater supplies, and meet regulatory requirements, while enhancing the long-term reliability of the City's water supply.

In 2023, CCWA established its Surplus Water Transfer Program to provide a process for member agencies to exchange or transfer surplus State Water when available. The City Council previously authorized participation in the program, allowing the City to pursue exchanges or sales of surplus State Water when conditions warrant.

Favorable State Water P roject conditions have resulted in the City having State Water supplies currently in excess of projected operational needs. Staff estimates that up to 2 5,000 acre-feet (AF) of water can be made available for transfer this year without affecting the City's anticipated water supply needs or long-term water supply reliability.

DISCUSSION:

Based on current State Water Project allocations, projected customer demand, existing groundwater supplies, and operational requirements, staff has determined that up to 5,000 AF of State Water is surplus to the City's 2026 needs and can be made available for transfer this year. The proposed transfer will not affect the City's ability to meet customer demand or comply with water supply obligations.

The City's surplus State W ater is currently stored in San Luis Reservoir. Under State Water Project operating rules, stored water cannot be guaranteed to remain available indefinitely. Depending on reservoir conditions and operational needs, stored water could be lost. A recent analysis by the California Department of Water Resources (DWR) indicates that there is a 50 percent chance of at least some stored water in San Luis Reservoir being lost by the end of September 2026. Selling surplus water allows the City to realize value from water it does not currently need and protects the water from being lost by the City for no value, while maintaining sufficient supplies to meet anticipated demand.

Transfers between State Water Contractors require coordination among DWR , CCWA, and the purchasing State Water Contractor. As the City's State Water delivery agency, CCWA administers these transactions on behalf of its member agencies. To facilitate this transaction, the City will enter into a Surplus Water Transfer Agreement w ith CCWA (Attachment B). Under the agreement, CCWA will coordinate the transfer of the City's surplus State Water to the purchasing agencies, obtain the necessary approvals, receive payment from the purchaser, and distribute the City's share of the proceed s, consistent with the terms of the Transfer Agreement between CCWA and the Westside Districts (Attachment C).

CCWA has negotiated a transfer agreement with the Westside Districts, subject to execution of the Surplus Water Transfer Agreement and completio n of all required approvals. The sale price is $400/AF if the transaction is completed during September 2026 and decreases each month thereafter through December 2026. Staff recommends making available for sale up to 5,000 AF of surplus State Water. At that quantity and price, the transfer is expected to generate approximately $ 2 million in gross revenue for the Water Enterprise Fund.

Execution of the Surplus Water Transfer Agreement does not itself complete the sale.

The transfer remains subject to approval by DWR and execution of the required transfer agreements. Because State Water transfer opportunities are time -sensitive, approval of the Surplus Water Transfer Agreement at this time will allow CCWA to proceed with the transaction at the most favorable terms.

3 Alternative(s)
The City Council may decline to approve the Surplus Water Transfer Agreement. This is not recommended because it would prevent the City from utilizing CCWA to complete the sale of surplus State Water, potentially resulting in both the loss of revenue from the water sales and the loss of water stored in San Luis Reservoir.

Fiscal Considerations
Proceeds from the sale will be credited to the Water Enterprise Fund, generating up to $2 million in revenue , which will help support the co ntinued operation and maintenance of the City's water system. The Water Enterprise Fund will also be responsible for its proportionate share of administrative and transaction costs associated with the transfer as provided in the Surplus Water Transfer Agre ement. Those costs are minor relative to the anticipated sale proceeds.

Impact on the Community
The proposed agreement with CCWA allows the City to maximize the value of surplus State Water while maintaining sufficient water supplies to meet projected demands.

Other Agency Review
Completion of the transfer will require approval and coordination with CCWA, DWR, the purchasing State Water Contractor, and any other approvals required under applicable State Water Project contracts.

ATTACHMENT(S)
A. Resolution
B. Surplus Water Transfer Agreement with Central Coast Water Authority C. 2026 Westside Districts/Central Coast Water Authority Transfer Agreement Attachment A

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE

A SURPLUS WATER TRANSFER AGREEMENT, AND ANY RELATED

DOCUMENTS NECESSARY, WITH THE CENTRAL COAST WATER

AUTHORITY FOR THE TRANSFER AND SALE OF UP TO
5,000 ACRE-FEET OF SURPLUS STATE WATER

WHEREAS, the Central Coast Water Authority (CCWA) was formed by its member agencies to finance, construct, operate, and maintain facilities that deliver State Water Project supplies to participating agencies on the Central Coast, including the City of Santa Maria (City); and

WHEREAS, the City has received State Water through CCWA since 1997 and has identified up to 5,000 acre-feet of State Water that is surplus to the City's anticipated 2026 water supply needs and can be made available for transfer without affecting the City's ability to meet customer demands or water supply obligations; and

WHEREAS, CCWA has established a Surplus Water Transfer program to facilitate the transfer of surplus State Water supplies by participating agencies, and the City desires to enter into a Surplus Water Transfer Agreement with CCWA to facilitate the transfer and sale of the City's surplus State Water; and

WHEREAS, the proposed transfer will allow the City to realize value from surplus State Water supplies while maintaining sufficient water supplies to meet projected demands, with revenues from the transfer credited to the City's Water Enterprise Fund.

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

SECTION 1. The City Manager, or designee, is hereby authorized to execute a Surplus Water Transfer Agreement , and any related documents necessary, with the Central Coast Water Autho rity, in substantially the same form as presented, for the transfer and sale of up to 5,000 acre-feet of surplus State Water; and SECTION 2. The City Manager , or designee , is hereby authorized to take all actions necessary to implement the agreement and complete the transfer consistent with the terms approved by this Resolution; and
SECTION 3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

///

Attachment A

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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held on this 4th day of August 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

2026 Surplus Water Transfer Program
Transfer Agreement
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CENTRAL COAST WATER AUTHORITY

SURPLUS WATER TRANSFER AGREEMENT
re. WESTSIDE DISTRICTS

This Surplus Water Transfer Agreement (“Agreement”) is made by:

CENTRAL COAST WATER AUTHORITY (“CCWA”)

And

CITY OF SANTA MARIA

each signatory to this Agreement (“Contractor,” and if more than one, “Contractors”).

CCWA and Contractor are each a “Party” and together are the “Parties.”

RECITALS
A. CCWA and the California Department of Water Resources (“DWR”) are parties to a long-term water supply contract that provides for the delivery of water from California’s State Water Project (“SWP”) to portions of Santa Barbara County (the “SWP Contract”).

B. Additionally, CCWA owns, operates, and maintains water conveyance, storage and treatment facilities to deliver water made available to CCWA pursuant to the SWP Contract to cities, water districts and other water purveyors and users in portions of Santa Bar bara County (each a “CCWA Participant ” and collectively, the “ CCWA Participants ”). Each CCWA Participant is a party to a water supply agreement with CCWA (“Water Supply Agreement”) that provides for the delivery of a portion of the water supply made available by the SWP Contract to the Participant. Each Contractor is a CCWA Participant.

C. From time to time, such as in years of high precipitation, the SWP is capable of delivering to CCWA more water than is needed by the CCWA Participants. Additionally, in some years, water that is available for delivery to one or more CCWA Participants, but is not delivered in that year, may be lost due to delivery, storage, and other constraints within the SWP or local facilities.

D. On July 27, 2024, CCWA’s Board of Directors adopted Resolution No. 23 -06 creating the “Surplus Water Transfer Program” to provide a process and procedures for CCWA Participants to transfer or exchange water available to them pursuant to their Water Supply Agreements that is surplus to their needs in any year (“Surplus Water”).

E. CCWA implements the Surplus Water Transfer Program on an annual basis.

CCWA Participants may elect to participate in the Surplus Water Transfer Program by executing a “Program Participation Agreement” with CCWA. The Surplus Water Transfer Program is carried out consistent with the SWP Contract and CCWA’s Administrative Rules for the Transfer or Exchange of Water.

Attachment B
2026 Surplus Water Transfer Program
Transfer Agreement
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F. Pursuant to the 2026 Program Participation Agreement dated March 15 , 2026 (“Program Participation Agreement”), CCWA gave notice to each Contractor of an opportunity to transfer Surplus Water to Dudley Ridge Water District (“DRWD”), Belridge Water Storage District, Berrenda Mesa Water District, Lost Hills Water District, and Wheeler Ridge -Maricopa Water Storage District (collectively, “Westside Districts” or the “Purchaser”) and subsequently negotiated an agreement (the “Project Agreement”) related to the transfer of Surplus Water between CCWA and Purchaser (the “Project”). Each Contractor has elected to participate in the Project and has delivered a Statement of Intent (as that term is defined in the Program Participation Agreement) to CCWA.

G. To the extent this Agreement requires compliance with CCWA Resolution No. 2021-01, CCWA has provided notice to all CCWA Participants of the deadline by which any CCWA Participant must have notified CCWA of its intent to exercise its right of first refusal pursuant to CCWA Resolution No. 2021 -01, and all CCWA Participants, if any, desiring to exercise their right of first refusal to take delivery of the Total Transfer Quantity on the same terms and conditions as the Purchaser has done so prior to the Effective Date of this Agreement.

H. The Parties anticipate that certain approvals will be required to effectuate the Project, including DWR’s approval of the Project in the form of one or more contracts (“DWR Approval Agreement(s)”).

I. The Parties desire to enter into this Agreement to set forth the rights, responsibilities and obligations of the Parties as it relates to the Project.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual representations, warranties, covenants and agreements contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. Purpose and Intent . The purposes of this Agreement are to provide for (a) CCWA’s transfer of Contractor’s Surplus Water to Purchaser on behalf of Contractor and CCWA’s delivery of funds received from the Purchaser to Contractor, and i n exchange for such services, (b) each Contractor’s payment of its pro rata share of CCWA’s Total Expenses, as that term is defined in Paragraph 5.1, and each Contractor’s assumption of all liability related to or arising under this Agreement and the Project. It is the intention of the Parties that neither CCWA, nor any CCWA Participant that is not a Party to this Agreement shall incur any expense or liability related to or arising under this Agreement, the Project, or the Surplus Water Transfer Program.

2. Compliance with all Laws

2.1 The Parties’ respective obligations pursuant to this Agreement are contingent upon compliance with all applicable laws and legal requirements associated with the Project, including but not limited to the California Environmental Quality Act (Pub. Res. Code, § 21000 et seq.) 2026 Surplus Water Transfer Program
Transfer Agreement
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(“CEQA”), and securing any required consents, approvals, permits or orders necessary to effectuate the Project.

2.2 Contractor acknowledges that, pursuant to CCWA’s Administrative Rules for the Transfer or Exchange of Water, Contractor is responsible for compliance with CEQA, as applicable, and Article 57(g) of the SWP Contract. Contractor represents and warrants to CCW A that: (a) Contractor has complied, and will comply, with all applicable laws, regulations, and legal requirements associated with the Project; (b) Contractor’s Transfer Quantity, as defined in Paragraph 3.1, is surplus to Contractor’s needs; and (c) the Project will not create significant adverse impacts to or within Contractor’s service area. CCWA is expressly entitled to rely upon the foregoing representations and warranties without inquiry. Contractor shall promptly notify CCWA in writing if Contractor becomes aware that any of the foregoing representations and warranties was inaccurate when made or has become inaccurate.

2.3 Contractor acknowledges that CCWA retains sole and absolute discretion with respect to whether to approve or not approve the Project. CCWA is not restricted from considering any feasible mitigation measures and/or alternatives, including not approving the Project.

2.4 The Project shall be carried out consistent with the SWP Contract and CCWA’s Administrative Rules for the Transfer or Exchange of Water.

3. Transfer Quantity. On behalf of Contractor, CCWA agrees to facilitate the Project with Purchaser pursuant to, and subject to the terms and conditions of the Project Agreement, which is attached hereto as Exhibit A , and the DWR Approval Agreement(s) . The “Total Transfer Quantity” represents the sum of each Contractor’s transfer quantity (“Contractor’s Transfer Quantity”) as stated in the table attached hereto as Exhibit B and incorporated herein.

4. Procedure and Conditions

4.1 CCWA Consideration of Project

4.1.1 CCWA’s Board of Directors will hold a regular meeting to consider whether to approve or deny the Project Agreement and authorize the CCWA Executive Director to execute all agreements necessary to effectuate the Project.

4.1.2 Upon receipt of Contractor’s execution of this Agreement , CCWA’s Executive Director will endeavor to timely execute the Project Agreement and deliver it to DWR and request its approval.

4.1.3 Upon receipt of the proposed DWR Approval Agreement(s) for the Project, CCWA’s Executive Director will endeavor to timely review the DWR Approval Agreement(s) , and, if consistent with the terms and conditions of the Project as set forth in the applicable Project Agreement, CCWA will endeavor to timely notify DWR and Purchaser of CCWA’s approval of the DWR Approval Agreement(s).

4.1.4 Provided that each Contractor has satisfied all obligations and conditions precedent set forth in this Agreement, and further provided that CCWA’s Board of Directors has 2026 Surplus Water Transfer Program
Transfer Agreement
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approved the Project and CCWA’s Executive Director has determined that the DWR Approval Agreement(s) are consistent with the Project Agreement, CCWA ’s Executive Director will endeavor to timely execute the DWR Approval Agreement(s) on behalf of CCWA.

4.2 Transfer of Project Water. In the event DWR approves the Project and all contracting parties to the DWR Approval Agreement(s) execute their respective DWR Approval Agreement(s), CCWA shall coordinate with DWR and arrange for transfer of the water subject to the Project Agreement pursuant to the terms and conditions of the DWR Approval Agreement(s).

4.3 Failure of Conditions . In the event any of the conditions precedent in this Agreement are not satisfied by the Contractor, or DWR approval is not obtained, or all contracting parties to any of the DWR Approval Agreement(s) fail to execute the applicable DWR Approval Agreement(s), CCWA may terminate this Agreement as provided in Paragraph 11.2.

5. Contractor’s Share of Expenses and Revenues

5.1 Contractor’s Share of Expenses

5.1.1 Contractor shall pay to CCWA the Contractor’s pro rata share of all out-of- pocket expenditures made by CCWA pursuant to this Agreement or related to the Project (collectively, “Total Expenses”). Total Expenses include, but are not limited to : consultant and legal expenses, any expenses associated with CCWA’s compliance with CEQA, any expenses associated with securing any required approvals , any expenses incurred by CCWA in defense of this Agreement, and any other costs or expenses arising under this Agreement or related to the Project. Each Contractor’s pro rata share of Total Expenses shall be equal to the Contractor’s Transfer Quantity divided by the Total Transfer Quantity, as stated in Exhibit B attached hereto.

5.1.2 Contractor acknowledges and agrees that other CCWA Participants may join this Agreement after Contractor becomes a Party, which in turn will change the Total Transfer Quantity set forth in Exhibit B. Exhibit B may be modified without amendment of this Agreement.

Upon the addition of any new Contractor, CCW A shall provide prompt notice of the modified Exhibit B to Contractor.

5.1.3 For Total Expenses arising from services that benefit only one Contractor, that Contractor shall pay CCWA the Total Expenses related to said service(s).

5.1.4 In the event CCWA reasonably determines that Total Expenses may exceed $50,000, CCWA may request that Contractor place on deposit with CCWA Contractor’s pro rata share of Total Expenses. CCWA shall provide Contractor with an invoice requesting such deposit and Contractor shall remit the amount stated in the invoice within thirty (30) days of receipt.

5.2 Contractor’s Share of Revenues. Contractor shall be entitled to receive its pro rata share of any funds due to CCWA pursuant to the Project Agreement. Contractor’s pro rata share shall be equal to the Contractor’s Transfer Quantity divided by the Total Transfer Quantity, as stated in E xhibit B. Upon receipt of Purchaser payments under the Project Agreement, CCWA shall deliver to Contractor the Contractor’s pro rata share of the payment received from Purchaser. 2026 Surplus Water Transfer Program
Transfer Agreement
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Contractor shall provide CCWA with payment instructions for this purpose. CCWA may, in its sole and absolute discretion, deduct any Total Expenses due from Contractor from the payment otherwise due to Contractor.

5.3 Reconciliation. Upon termination of this Agreement, CCWA shall provide to Contractor an accounting of the actual amounts the Contractor is obligated to pay to CCWA and are due to Contractor. Any overpayment by any Contractor shall be promptly refunded by CCWA and any underpayment by Contractor shall be promptly paid to CCWA. For clarity, in the event that the DWR Approval Agreement(s) for the Project is not executed and therefore that such Project does not occur, CCWA shall not be obligated to refund Contract or’s pro rata share of the Total Expenses incurred.

6. Cooperation; Contractor’s Authorized Representative

6.1 Cooperation. Contractor acknowledges that CCWA’s ability to transfer Surplus Water, as provided in this Agreement, requires Contractor’s cooperation. Contractor shall reasonably cooperate with CCWA, at CCWA’s request, in all ways as may be necessary to carry out the terms and conditions of this Agreement.

6.2 Party’s Authorized Representative. Concurrent with execution of this Agreement, in the signature block of this Agreement, each Party shall identify and provide the contact information for its authorized representative (“Authorized Representative ”). Contractor represents and warrants that its Authorized Representative has full authority to grant, provide and enter into, by and on behalf of Contractor, any and all consents, approvals, instructions, authorizations or agreements by Contractor in connection with this Agreement (collectively, “Contractor Directions”). CCWA shall be entitled to rely upon, without inquiry, the full authority of Contractor’s Authorized Representative.

7. Obligation in the Event of Default

7.1 Written Demand Upon Failure to Make Payment or Perform Obligation. Upon any Contractor’s failure to make any payment in full when due under this Agreement or to perform any other obligation hereunder, CCWA shall make written demand upon the Contractor, and if such failure is not remedied within thirty (30) days from the date of such demand, such failure shall constitute a default and breach of this Agreement.

7.2 Termination of Contractual Rights; Continuing Obligations. Notwithstanding any provision in this Agreement to the contrary, u pon any Contractor’s failure to make any payment, which failure constitutes a default under this Agreement , CCWA may terminate this Agreement as to such defaulting Contractor. Irrespective of such termination, all obligations of the defaulting Contractor under this Agreement shall continue in full force and effect. CCWA’s termination as to any defaulting Contractor pursuant to this Paragraph is in addition to all other remedies provided by this Agreement.

7.3 CCWA’s Use of Other Funds . CCWA may draw upon and use any unobligated funds held by CCWA as credits payable to the defaulting Contractor, including “O&M Year -end 2026 Surplus Water Transfer Program
Transfer Agreement
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Credits” and any other credits held by CCWA for the benefit of the defaulting Contractor, and any cash that the defaulting Contractor may have on deposit with CCWA , for example in the “DWR Reserve Fund” or the “Rate Coverage Reserve Fund,” to satisfy the defaulting Contractor’s payment obligation, in whole or in part. CCWA shall provide to the defaulting Contractor an accounting of any such credits or deposits applied. CCWA’s use of other defaulting Contractor funds pursuant to this Paragraph is in addition to all other remedies provided by this Agreement.

7.4 Increase in Non-defaulting Contractor Costs. Notwithstanding any provision in this Agreement to the contrary, in the event a defaulting Contractor’s payment obligations under this Agreement exceed the amount of funds available under Paragraph 7.3, the pro rata share of each non-defaulting Contractor shall be automatically increased pro rata with the other non-defaulting Contractors for the remaining term of this Agreement. Contractor acknowledges and agrees that its pro rata share of Total Expenses may increase as a result of a default by another Contractor.

7.5 Right of Recovery from Defaulting Contractor. If a Contractor fail s or refuses to pay any amounts due to CCWA under this Agreement, the non-defaulting Contractors’ increased obligations to make such payments shall not relieve the defaulting Contractor of its liability for such payments. Each non-defaulting Contractor shall have a right of recovery from the defaulting Contractor to the extent of such non -defaulting Contractor’s respective increase in obligation caused by the defaulting Contractor. Any amounts received by CCWA from the defaulting Contractor for costs that were previously paid by a non -defaulting Contractor pursuant to Paragraph 7.4, shall be reimbursed by CCWA to the non-defaulting Contractors.

7.6 Transfer of Defaulting Contractor’s Account . Upon the failure of any Contractor to make any payment which failure constitutes an uncured default under this Agreement, CCWA shall use its best efforts to transfer any payment received by CCWA from Purchaser under the Project Agreement to which defaul ting Contractor would otherwise be entitled under Paragraph

5.2 of this Agreement for all or a portion of the remainder of the term of this Agreement to the non-defaulting Contractors on a pro rata basis. Notwithstanding the foregoing provision, any and all defaulting Contractors shall remain liable to CCWA and/or to any and all non -defaulting Contractors to pay the full amount of their costs in accordance with this Agreement as if such transfer had not been made.

8. Disclaimer of Liability

8.1 Contractor acknowledges and agrees that CCWA is in good faith administering the Surplus Water Transfer Program and facilitating the Project on behalf of Contractor in exchange for Contractor’s full reimbursement of Contractor’s pro rata share of CCWA’s Total Expenses and full assumption of CCWA’s liabilities related to or arising out of this Agreement and any related agreements pertaining to the Project. As a result, it is the intent and agreement of the Contractor and CCWA that CCWA shall not incur any expense or liability for such assistance to any Contractor under this Agreement for any cause, except for any loss or damage to the extent caused by CCWA’s sole negligence, willful misconduct, or breach of this Agreement. 2026 Surplus Water Transfer Program
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8.2 To the maximum extent permitted by law, neither CCWA, nor any of its elected officials, officers, agents, employees, consultants, or attorneys, nor any of the CCWA Participants who are not also Parties to this Agreement , shall be liable to any Contractor pursuant to this Agreement or otherwise for any claims, liabilities, damages, losses, actions, penalties, proceedings, or expenses in the event any condition precedent to this Agreement is not satisfied , any approval required to permit any portion of the Project is not obtained or is conditioned in any manner that is not acceptable to Contractor, or any Surplus Water deliverable to CCWA under the Project Agreement is not delivered to CCWA, or CCWA is unable to deliver such water to Contractor for any reason , whether such claims, liabilities, damages, losses, actions, penalties, proceedings, or expenses arise prior to or following termination or expiration of this Agreement , except for any loss or damage to the extent caused by CCWA’s sole negligence , willful misconduct, or breach of this Agreement.

9. Indemnification and Defense

9.1 Indemnification. Contractor (“Indemnifying Party”) agrees to indemnify, defend, protect and hold harmless CCWA and its officers, directors, employees, agents, consultants, and attorneys, and CCWA Participants who are not also Parties to this Agreement (each an “Indemnified Party” and collectively, the “Indemnified Parties”), from and against any and all claims, liabilities, damages, losses, actions, penalties, proceedings, and expenses, including attorneys’, paralegals’, consultants’, and experts’ fees, costs, and expenses, arising from or relating to: (a) this Agreement o r the Project; (b) any breach by Contractor of this Agreement; or (c) any inaccuracy in, or breach of, any representation or warranty made by Contractor in this Agreement, including Paragraph 2.2, whether such claims, liabilities, damages, losses, actions, penalties, proceedings, or expenses arise prior to or following termination or expiration of this Agreement, except to the extent caused by the Indemnified Party’s sole negligence, willful misconduct, or breach of this Agreement.

10. Remedies

10.1 If any Party does not timely perform its obligations pursuant to this Agreement, all other Parties shall be entitled to proceed to protect and enforce their rights as provided in this Agreement by such appropriate judicial proceedings as each Party may deem most effectual, either by suit in equity or by action at law, whether for the specific performance of any covenant or agreement contained herein or to enforce any other legal or equitable right vested by this Agreement or by law. The provisions of this Agreement and the duties of each Party and its elected officials, officers, agents, or employees shall be enforceable by mandamus or other appropriate suit, action, or proceeding in any court of competent jurisdiction.

10.2 The Parties agree that in the event of a default of this Agreement by a Party, all other Parties shall have all remedies in law or equity available to them, including specific performance and termination of this Agreement, and no remedy or election shall be deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity.

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11. Effective Date; Term; Termination

11.1 This Agreement shall be effective on the Date executed by Contractor (“Effective Date”). In the event of more than one Contractor, each Contractor’s Effective Date shall be the date this Agreement is executed by said Contractor.

11.2 Except as otherwise provided in this Agreement, the term of this Agreement shall commence on the Effective Date and shall continue until the termination of the DWR Approval Agreement(s), or until each Party’s final payment required under this Agreement, whichever is later.

11.3 CCWA may terminate any Contractor’s rights under this Agreement by providing notice of such termination to Contractor and all other Contractors: (1) in the event any of the conditions required by this Agreement are not satisfied; or (2) in the event a Cont ractor fails to make any payment required by this Agreement. This Agreement may be terminated by any Contractor as to that Contractor only upon the expiration of thirty (30) days following the later of (i) delivery of written notice of termination to CCWA ; and (ii) discharge by the Contractor, or satisfactory assurance of performance, of all financial obligations hereunder. CCWA shall promptly provide a copy of any such notice of termination received by CCWA to all other Contractors.

11.4 Notwithstanding any provision in this Agreement to the contrary, the payment obligations of Contractor to CCWA under Paragraph 5 shall continue in full force and effect and the obligations set forth in Paragraphs 8, 9, and 10 shall survive in full force and effect until the expiration of the applicable statute of limitations, or any claim or litigation concerning this Agreement within the applicable statute of limitations is finally resolved, whichever occurs later.

12. General Provisions

12.1 Assignability. This Agreement shall not be assigned by Contractor without the prior written consent of CCWA, which consent shall not be unreasonably withheld. Any attempted assignment without the prior written approval of CCWA shall be void.

12.2 Attorneys’ Fees. In any action to enforce or interpret this Agreement, the prevailing party shall recover from the non-prevailing party, in addition to any damages, injunctive or other relief, all costs (whether or not allowable as “cost” items by law) reasonably incurred by the prevailing party at, before and after trial or on appeal, or in any bankruptcy proceeding, including attorneys’ and witness (expert and otherwise) fees, deposition costs, copying charges and other expenses.

12.3 Construction. The provisions of this Agreement should be liberally construed to effectuate its purposes. The language of all parts of this Agreement shall be construed simply according to its plain meaning. Any rule of contract interpretation to the effect that ambiguities or uncertainties are to be interpreted against the drafting party or the party who caused it to exist shall not be employed in the interpretation of this Agreement or any document executed in connection herewith, as each Party has participated in the drafting of this document and had the opportunity 2026 Surplus Water Transfer Program
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to have their legal counsel review it. The Recitals to this Agreement are incorporated herein and made a part hereof by this reference. The defined terms in this Agreement shall apply equally to both the singular and the plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The terms “person” and “party” include individuals, corporations, partnerships, trust, and other entities and associations. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”

12.4 Counterparts; Electronic Signatures; Delivery by Email . The Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which when taken together shall constitute one and the same document. Counterparts may be delivered via electronic mail (including PDF or any electronic signature complying with the federal Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000 (P.L. 106-229), e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

12.5 Due Authority . Each Party hereby represent s and warrants that the individual executing this Agreement is expressly authorized to do so on behalf of such Party and to bind that party to perform all acts required by this Agreement, and that the consent, approval, or execution of or by any additional person or party is not required to legally bind that party to the terms and conditions of this Agreement.

12.6 Entire Agreement; Prior Agreements Superseded; Modification. The making, execution and delivery of this Agreement have not been induced by any representations, statements, warranties or agreements other than those herein expressed. This Agreement constitutes the entire agreement and understanding of the Parties concerning the subject matter hereof. This Agreement supersedes all prior negotiations, agreements, representation s and understandings of the Parties relating to the subject matter hereof , including similar agreements from prior years. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all Parties.

12.7 Good Faith. The Parties agree to exercise their best efforts and utmost good faith to effectuate all the terms and conditions of this Agreement and to execute such further instruments and documents as are necessary or appropriate to effectuate all of the terms and conditions of this Agreement.

12.8 Governing Law; Venue. This Agreement and all matters relating to this Agreement shall be governed by the laws of the State of California , without regard to principles of conflicts of laws . Venue for any disputes under this Agreement shall be in Santa Barbara County, California.

12.9 Legal Advice. Each Party has received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions of this Agreement.
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12.10 No Agency. This Agreement shall not create, nor shall it be construed to create, any agency, partnership or similar relationship among the Parties.

12.11 Notices. All notices, approvals, acceptances, requests, demands and other communications required or permitted under this Agreement, to be effective, shall be in writing and shall be delivered, either in person or by email or by Federal Express or other similar overnight delivery service, to the Authorized Representative of the Party to whom the notice is directed. Any communication given by email shall be deemed delivered on such mailing date and any communication given by overnight service shall be deemed delivered one (1) business day after the dispatch date. Any Party may change its email and overnight service addresses by giving all other Parties written notice of its new addresses.

12.12 Severability. If any provision of this Agreement or its application to any Party or circumstance is held invalid or unenforceable, then the remainder of this Agreement and the affected provision to the extent it is not so held shall remain valid and enforceable and in full force and effect. The foregoing shall not apply, however, if the invalid or unenforceable provision in question or, as applicable, the portion or application thereof held invalid or unenforceable, is a fundamental and material provision of this Agreement.

12.13 Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns.

12.14 Third Party Beneficiary; Enforcement. The Parties agree that this Agreement is for the benefit of (i) Contractors, (ii) CCWA, and (iii) all CCWA Participants that are not Contractors.

All of the aforementioned entities and persons shall be entitled to enforce the provisions of this Agreement.

12.15 Time of the Essence . Except as otherwise provided in this Agreement, time is of the essence with respect to this Agreement and the performance of each and every obligation contained in this Agreement.

12.16 Time for Performance. Notwithstanding any provision of this Agreement to the contrary, in the event a Party fails to perform any obligation under this Agreement (other than an obligation to pay money) because of strikes, lockouts, labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, government or j udicial actions, inclement weather or other causes beyond its reasonable control, that failure will not constitute a default under this Agreement, and the performance in question will be excused during the period in which the cause for failure continues.
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IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the Effective Date.

CENTRAL COAST WATER AUTHORITY

By: ____________________________
Name: Peter Thompson
Title: Executive Director

Approved as to form:

Brownstein Hyatt Farber Schreck

By: ____________________________
Name: Stephanie Osler Hastings

Authorized Representative:

Central Coast Water Authority
255 Industrial Way
Buellton, CA 93427
Attn: Peter Thompson, Executive Director
Telephone: (805) 688-2292
Email: [email protected]

Date: ____________________________

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CONTRACTOR

By: ___________________________ Date: ____________________________ Name: Shad S. Springer
Title: Director of Utilities

Approved as to form:

City Attorney’s Office

By: _______________________________
Name: Thomas Watson

Authorized Representative:

City of Santa Maria
110 E Cook Street
Santa Maria, CA 93454
Attn: Shad S. Springer, Director of Utilities
Telephone: (805) 925-0951 ext. 7211
Email: [email protected]

Exhibit A: Project Agreement between CCWA and Purchaser

Exhibit B: Contractor’s Transfer Quantity and Total Transfer Quantity

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Exhibit A

Project Agreement between CCWA and Purchaser

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Exhibit B*

Contractor’s Transfer Quantity and Total Transfer Quantity

Contractor Transfer Quantity

Total Transfer Quantity:

* As provided in Section 5.1.2, Exhibit B may be modified without amendment of this Agreement. CCWA shall provide prompt notice of any changes to Exhibit B to Contractor.

Attachment C

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Donna G. Schwartz, Chief Deputy City Clerk

DATE: August 4, 2026

SUBJECT: Appointment to the Block Grants Advisory Committee

Description:

The City Council will consider making an appointment to the Block Grants Advisory Committee.

RECOMMENDATION:

Block Grants Advisory Committee
Councilmember Batalla will have the opportunity to make one nomination for an unexpired term ending July 2029, appointed by the Mayor, and confirmed by Council.

Applicant: Nomination to be made by:

Cynthia Gudino Councilmember Batalla

Incumbent – Not Appointed
Isaias Berumen
Esther Acosta

BACKGROUND:

Attendance
Members of the City’s Boards, Commissions, and Committees serve an important role in advising staff and the City Council on matters that affect policy and issues that affect the future of the community; therefore, Members’ attendance is key to the work these Boards, Commissions, and Committees perform. Members serve in their capacity as Members at the pleasure of the City Council pursuant to Santa Maria Municipal Code (SMMC) Section 2-16.02. As established by SMMC 2 -16.01, Members are required to attend meetings regularly and not miss 25 percent of the regular meeti ngs in a calendar year, or they would be deemed to have resigned upon acceptance by the City Council. While the Municipal Code focuses on the Planning Commission, Recreation and Parks Commission, Board of Appeals, and Library Board, it is the expectation t hat all City 2 Boards and Committee Members participate and attend meetings in the same manner as those Boards, Commissions, and Committees defined in the Municipal Code.

DISCUSSION:

Members of the Block Grants Advisory Committee are required by the Political Reform Act (Govt. Code Section 81000 -91014), and the City’s Conflict of Interest Code, to file Statements of Economic Interest, Form 700, disclosing personal assets and income within 30 days of appointment, annually thereafter, and upon leaving o ffice. Committee Members must also disqualify themselves from participating in decisions which may affect their personal economic interests. Statements of Economic Interests are public documents and may be inspected by any member of the public and copied i f requested.

The Fair Political Practices Commission (FPPC) is the State agency which interprets the law’s provisions.

Copy of the application may be obtained from the City Clerk's office upon request.

Alternative(s)
A Councilmember could decide to withh old their nomination to a Board, Commission, or Committee until such time as additional applications could be received or there is sufficient opportunity for the Councilmember to make contact with the existing applicant(s) to be considered for nomination.

Impact on the Community
Having members of the public serve on the City’s Advisory Bodies provides a positive impact to the community, enabling the City to obtain input from all segments of the community and ensures that the community receives information regarding the activities of the City’s Boards, Committees, and Commissions.

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Chenin Dow, Community Development Director

DATE: August 4, 2026

SUBJECT: Introduction of an Ordinance Amending Title 12 - Zoning, to Establish a “SMHP Senior Mobile Home Park Overlay District”, Adding Related Definitions, and Amending the Official Zoning Map of the City.

Description:

The City Council will consider introducing an Ordinance amending Title 12 - Zoning to establish Chapter 12-25B titled “SMHP Senior Mobile Home Park Overlay District” , and adding definitions for “Mobile Home Park, Senior” and “Mobile Home Park, All-ages”, and amending the official Zoning Map of the City to add a new SMHP Senior Mobile Home Park Overlay District.

Environmental Notice: The proposed Zoning Text Amendments qualify for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) State Guidelines.

RECOMMENDATION:

1. Waive first reading and introduce an Ordinance amending Title 12 , Zoning, by adding a new Chapter 12-25B, Titled “SMHP Senior Mobile Home Park Overlay District” and amending the official Zoning Map of the City to add a new SMHP Senior Mobile Home Park Overlay District; and

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

BACKGROUND:

Mobile home parks within the City of Santa Maria provide an essential source of affordable housing, particularly for fixed -income senior residents. Five parks in the City currently operate as age -restricted communities intended for occupancy by persons 55 years of age and older pursuant to the federal Housing for Older Persons Act (HOPA) and state fair housing regulations. This ordinance is designed to en sure long -term protection of senior -serving mobile home parks and prevent unreviewed conversion to all-age use. The Planning Commission reviewed this item at a Study Session on May 21, 2026. The Planning Commission was supportive of the proposed Ordinance, and the item was scheduled for a Planning Commission hearing on July 1, 2026, where it was recommended for approval to the City Council.

2 DISCUSSION:

The proposed Ordinance would establish a new SMHP Overlay District applicable to the five existing Senior Mobile Home Parks in the City and to any future Senior Mobile Home Parks that are established. The existing senior mobile home parks include Rancho Buena Vista, Casa Grande, Casa Del Rio, La Maria, and Trailerancho. The SMHP Overlay is intended to functi on as a Zoning Overlay with requirements regulating occupancy standards, certification and reporting, and prohibition of the conversion of senior mobile home parks to all age parks.

Key components of the proposed ordinance include:
 Preservation of Senior Communities: Formally designates senior mobile home parks to maintain long-term availability as affordable housing for older adults.  Occupancy Standards: Requires that at least 80 percent of occupied mobile home units be occupied by at least one person 55 years of age or older, consistent with HOPA requirements.
 Biennial Certification: Requires biennial age verification and compliance certification by park owners or operators to confirm continued compliance with federal and state senior housing requirements.
 Disclosure Requirements: Mandates that park rules, leases, advertising, and signage clearly identify the property as a Senior Mobile Home Park.  Conversion Protection: Prohibits conversion to all -age status without a City - initiated or owner -requested rezoning process, which includes mandatory public hearings before the Planning Commission and City Council.  The definition of Mobile Home Park is proposed to be amended to add definitions for “Mobile Home Park, Senior” and “Mobile Home Park, All-Ages”.  The official zoning map for the city is proposed to be amended to add the SMHP Overlay district designating the five existing senior mobile home parks in the city as SMHP.

The proposed SMHP Overlay would not impose new rent control or management restrictions, nor will the City regulate individual tenancy decisions or residency eligibility.

Park owners and operators remain responsible for compliance with applicable federal and state housing laws. It simply provides a transparent mechanism for the City to monitor and support compliance.

Additionally, the Ordinance directly aligns with the findings and policies of the City's Housing Element . Policies 2.1 and 4.1 specifically encourage strategies to ma intain affordability controls on housing options within the community, and to plan for and support the development and preservation of senior housing, accessibility, and service needs of the elderly population . Data from the Housing Element’s Housing Needs Assessment highlights that seniors are a designated special -needs population who face heightened housing insecurity because they are more likely to live on fixed incomes while requiring 3 higher levels of care. Specifically, 60 percent (3,405 households) of senior households in Santa Maria are lower-income (earning 80 percent of Area Median Income or less), and 40 percent are currently housing cost-burdened.

By formally establishing the overlay framework, the City can ensure that mobile home parks, which represent a vital segment of Santa Maria's naturally occurring affordable housing stock, are preserved to meet these documented low-income senior needs.

ATTACHMENT(S)
A. Ordinance
B. City of Santa Maria Official Zoning Map with SMHP Overlay

Attachment A

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA
AMENDING TITLE 12, ZONING, BY ADDING A NEW CHAPTER 12-25B TITLED “SMHP SENIOR MOBILE HOME PARK OVERLAY DISTRICT” AND

AMENDING THE OFFICIAL ZONING MAP OF THE CITY TO ADD A NEW

SMHP SENIOR MOBILE HOME PARK OVERLAY DISTRICT

WHEREAS, the City desires to amend its Municipal Code to include a “SMHP Senior Mobile Home Park Overlay District”; and

WHEREAS, the purpose of the SMHP Senior Mobile Home Park Overlay District is to preserve a significant source of affordable, senior housing by ensuring that senior mobile home parks within the City remain available to senior s and are not converted to allow occupancy by persons of all ages; and

WHEREAS, the proposed Ordinance is consistent with the goals, objectives, and policies of the Santa Maria General Plan and Housing Element, including those related to the preservation of affordable housing and housing opportunities for seniors; and

WHEREAS, on July 1, 2026, the Planning Commission conducted a duly noticed public hearing , as required by Government Code Section 65854, and voted to recommend that the City Council adopt the Senior Mobile Home Park Overlay District; and

WHEREAS, on August 4, 2026 the City Council conducted a duly noticed public hearing, as required by Government Code Section 65854.

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

SECTION 1. Title 12, of the Santa Maria Municipal Code is hereby amended to add a new Chapter 12-25B titled “SMHP Senior Mobile Home Park Overlay District”, to read as follows:

Chapter 12-25B SMHP Senior Mobile Home Park Overlay District

Section 12-25B.01 Regulations designated.

The sections of this Chapter constitute the regulations of the SMHP (Senior Mobile Home Park) Overlay District

Section 12-25B.02 Purpose and Intent.

The purpose of the SMHP Overlay District is to preserve and protect existing mobilehome parks intended for occupancy primarily for seniors in order to:

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(a) Maintain an affordable housing resource for residents aged 55 and older.

(b) Prevent displacement of senior households due to conversion of age -restricted parks to all-age parks.

(d) Ensure consistency with the federal Housing for Older Persons Act of 1995 (42 U.S.C Section 3607)

Section 12-25B.03 Applicability.

The SMHP Overlay District applies to all mobile home parks that meet the definition of “Mobile Home Park, Senior” and are rezoned to the SMHP Overlay District as of the effective date of this Ordinance . The City may apply the SMHP Overlay District concurrently with or subsequent to the permitting of any new senior mobile home parks.

Each land use and proposed development within the SMHP Overlay District shall comply with all applicable requirements of the primary zone, in addition to the requirements of this section.

Section 12-25B.04 Signage, advertising, rental agreements and leases.

Signage, advertising, rental agreements and leases for properties w ithin the SMHP Overlay District shall comply with the following:

(a) Signage, advertising, park rules, regulations, rental agreements and leases for units in a mobile home park in the SMHP Overlay District must state that the park is a “Senior Mobile Home Park.”

(b) Any advertisement for a rental or vacancy in the SMHP Overlay District must state that the vacancy is intended for occupancy by at least one person 55 years of age or older.

Section 12-25B.05 Occupancy limitations and rentals.

At least 80 percent of the occupied units in a mobile home park in the SMHP Overlay District must be occupied by at least one person 55 years of age or older.

Section 12-25B.06 Age verification and compliance procedures The City shall ensure that at least 80 percent of the occupied mobile homes in a senior mobile home park are occupied by at least one resident who is 55 years of age or older.

The occupancy verification documentation shall be made available by park owners for inspection by the City upon reasonable notice and request.

(a) At least once every two years owners and operators of senior mobile home parks shall submit documentation confirming that at least 80 percent of all occupied mobile homes are occupied by at least one resident 55 years of age or older to the City of Santa Maria Community Development Department . The owners or

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operators of each senior mobile home park shall maintain procedures for verifying the age of park residents.

i. The owner or operator of each senior mobile home park shall provide to the City a certification substantially in the following form:

“I [name] hereby certify that [number of such mobile homes] mobile homes out of a total of [total number] occupied mobile homes located in this mobile home park are occupied by at least one person 55 years of age or older and it is their primary residence. This certification is based on my personal knowledge of the residents, evid ence provided to me in the form of official government documents containing specific information about the current age of the residents, resident affidavits, or age certifications made by residents."

(b) The City shall consider government -issued identification to be reliable documentation of the age of the residents of the senior mobile home park, provided that it contains specific information about current age or date of birth (e.g., driver’s license).

(c) Reliable documentation shall also include a certification in a lease, application, affidavit, or other document signed by any member of the household aged 18 or older asserting that at least one person in the unit is 55 years of age or older.

(d) If the occupant(s) of a particular mobile home refuse or are unable to comply with these age verification procedures, the City may, if it has sufficient evidence, consider the unit to be occupied by at least one person 55 years of age or older.

Such evidence may include:

i. Government records or documents;

ii. Prior forms or applications; or

iii. A statement from an individual who has personal knowledge of the age of the occupants. The individual’s statement must set forth the basis for such knowledge and be signed under penalty of perjury.

(e) No later than 30 days after a request for age verification by a mobile home park owner or operator or an employee or agent of the City, all owners and residents of all mobile homes located, or proposed to be located, within the SMHP Overlay District shall provide to the mobile home park operator the requested age verification documents.

SECTION 2. Title 12, Chapter 12-2, Definitions, Section 12-2.102 of the Santa Maria Municipal Code is hereby amended to revise the definition of “Mobile home park”, to read as follows:

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Section 12-2.102 Mobile home park.
“Mobile home park” means any lot or parcel of land where trailer or mobile home sites are rented or leased or offered for rent or lease for one or more house trailers or mobile homes (compare “tourist camp.”).

(a) Mobile Home Park, Senior. A mobile home park where at least 80 percent of the occupied units must be occupied by at least one person 55 years of age or older.
(b) Mobile Home Park, All-ages. A mobile home park where the units are rented or leased to the general public regardless of the ages of the residents or occupants.

SECTION 3. An Amendment to the Official Zoning Map of the City of Santa Maria is hereby approved adding a new Zone District identified as “SMHP Senior Mobile Home Park Overlay District” as shown on Attachment B of the Council Agenda Report dated August 4, 2026, incorporated herein by reference.

SECTION 4. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and the City’s environmental procedures and has been found to be exempt pursuant to Section 15061(b)(3) (common sense exemption) of the CEQA guidelines. The City Council finds that there is no possibility the passage of this Ordinance amending the zoning code will have a significant effect on the environment because the changes are administrative in nature and do not approve specific development projects. Any future development projects utilizing the provisions of this Ordinance will be subject to separate environmental review under CEQA, as applicable, based on their specific characteristics, location, and potential impacts. Thus, the ordinance itself does not foreseeably result in construction activities or physical changes to the environment, either directly or indirectly.

SECTION 5. The City Council finds that the proposal is in accordance with the provisions of the General Plan of the City, that the proposed modifications are required for the public necessity, convenience, and general welfare , and that in the case of the zone change, the area is afforded the servies and facilities appropriate for the zone proposed. If any part or provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable.

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.

SECTION 7. This Ordinance shall be in full force and effect thirty days after its passage.

Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when

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deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within fifteen days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

INTRODUCED at a regular meeting of the City Council held on the 4th day of August 2026, and PASSED AND ADOPTED at a regular meeting held on the ________ day of ___________ 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

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

Attachment B

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Chenin Dow, Community Development Director

DATE: August 4, 2026

SUBJECT: Introduction of Ordinance s Amending Various Sections of Title 12 – Zoning, Relating to Child Day Care Centers, Non-taxable Merchandise Limitations, Transitional and Supportive Housing, Density Bonus, and Accessory Dwelling Units.

Description:

The City Council will consider the introduction of two Ordinances amending various Sections of Title 12 – Zoning, relating to Child Day Care Centers, Non -taxable Merchandise Limitations, Transitional and Supportive Housing, Density Bonus, and Accessory Dwelling Units.

Environmental Notice : The proposed ordinance amendments are exempt from the requirements of the Cal ifornia Environmental Quality Act (CEQA) per Public Resources Code Section 21080.17, and CEQA Guidelines Section 15061(b)(3).

RECOMMENDATION:

1. Waive first reading and introduce an Ordinance amending various sections of Title 12-Zoning of the Santa Maria Municipal Code relating to Child Day Care Centers, Non-taxable Merchandise Limitations, Transitional and Supportive Housing, and Density Bonus; and

2. Waive first reading and introduce an Ordinance amending Title 12, Chapter 12-56, Accessory Dwelling Units; and

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

BACKGROUND:

The proposed amendments include updates to Title 12, Zoning, of the Santa Maria Municipal Code to address recent updates by the State legislature for Accessory Dwelling Units, compliance with the City’s Housing Element Programs addressing Transitional and Supportive Housing and Employee Housing, and added flexibility in the types of uses that are permitted in shopping centers located within commercial zone districts. This item includes two Ordinances; one that includes proposed amendments to various sections of Title 12, and one that is specifically for Accessory Dwelling Units as this Ordinance is required to be reviewed and approved by the State Department of Housing and Community Development following adoption by the City Council . The proposed Ordinances were reviewed by the Planning Commission at a Study Session on May 21, 2026 and at hearing on July 1, 2026 where both were recommended to the City Council for approval.

2 DISCUSSION:

The following is a summary of the proposed ordinance amendments to Title 12, Zoning (see Attachments A and B).

Density Bonus
The proposed ordinance amendments to Chapter 12 -48, Density Bonus, of Title 12 are required for the Municipal Code to comply with Government Code Section 65915, which governs density bonuses and other incentives. The ordinance includes the procedures for density bonus applications including determinations of qualification, development incentives, review p rocedures, and compliance with Objective Design Standards.

Sections that are no longer in compliance with State law or no longer applicable have been removed.

Housing Element Compliance Programs
The City’s Housing Element of the General Plan includes Programs 4.D, and 4.E, requiring the City to permit transitional and supportive housing and employee housing for six or fewer employees as permitted uses in all residential zones. Additionally, Programs

4.F and 4.G state that the City will amend Title 12 to be consistent with the latest regulations for childcare facilities and list these larger facilities as permitted uses. To comply with these programs, the amendments include updating the relevant cha pters of Title 12 for all residential zones to list transitional and supportive housing defined in Government Code Section 65582 and implemented under Health and Safety Code Section 50675.14 as a permitted use. Employee housing defined in Health and Safety Code Section 17021.5 providing accommodation for six or fewer employees is also proposed to be listed as permitted in residential districts.

Child day care centers that currently require a Conditional Use Permit will be listed as a permitted use in al l residential, commercial and industrial zones. These facilities are required to comply with the State licensing provisions and any relevant Title 12 development standards for the zone addressing parking, landscaping, building height, setbacks, etc. The pr oposed ordinance specifies that child day care centers are only permitted in industrial zones when associated with, and integrated into, a facility that is a permitted or conditionally permitted use.

Non-taxable Merchandise Limitations
On October 21, 1997, the City Council adopted Ordinance 97-12, that added the following provision to shopping centers located in the Central Business (C -1) and General Commercial (C-2) districts:

For commercial uses exceeding 90,000 square feet of gross floor area, the non- taxable merchandise floor area shall not exceed eight percent of the total gross floor area of the building occupied by the commercial use. (Ord. 97-12, Enacted, 12/4/97)

The intent was to preserve the City’s existing shopping centers that are generally located along Broadway and Main Street and maintain retail sales tax income for the City. The 3 General Plan Land Use Element was also amended at that time to include this limitation.

In the more than 25 years since this ordinance was adopted, the nature of retail sales and the types of businesses that occupy larger shopping centers has changed. This is in part a result of the popularity of online retail sales with fewer customers purchasing items in person at retail stores. Additionally, larger retail stores such as Costco Wholesale, Winco, Target, Sams Club, and Walmart now include a much wider variety of groceries and food products along with taxable merchandise. Specialty grocery stores like Sprouts, California Fresh, and Whole Foods have also gained in popularity as well as a variety of recreational types of uses that may be appropriate to locate within shopping centers located in commercial districts.

The proposed ordinance includes deleting this provision in both the C-1 and C-2 districts.

Removal of this requirement will provide greater flexibility for the types of uses permitted within shopping centers and avoid situations where vacant buildings cannot be occupied by a use that is permitted but may exceed the eight percent non -taxable limitation. The proposed amendment is also consistent with the City’s recently adopted General Plan which superseded the prior General Plan that included this provision.

Accessory Dwelling Units and Junior Accessory Dwelling Units During the 2025 legislative session, the legislature passed and the Governor signed four new bills (AB 462, AB 1154, SB 9, and SB 543) further amending the State laws regulating ADUs and JADUs. To be consistent with State law, Chapter 12-56 of Title 12 is proposed to be amended to address the following:
 A definition of “Livable Space” has been added which is defined as: “A Space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.”
 No replacement parking is required when an attached garage i s converted to a JADU.
 Owner occupancy is no longer required for a JADU that has its own sanitation facilities within the unit. If a JADU shares a sanitation facility with the principal dwelling, owner occupancy in either the principal dwelling or JADU is required.  Permit processing timelines:
o Within 15 business days – Notification of application completeness or incompleteness.
o Within 60 days from complete application – Permit is approved or denied unless the applicant requests a delay or there is an application to create a new primary dwelling unit on the site.
o Determinations regarding incompleteness or denial may be appealed to the Planning Commission within 14 calendar days following the written determination. Planning Commission is required to provide a final written determination within 60 days after receipt of the appeal.

4 Within 60 days following the adoption of the amended Ordinance by the City Council, the City is required to submit the adopted Ordinance to the California Department of Housing and Community Development ( HCD) for review. The City is required to respond to any questions or comments received following review by HCD within 30 days.

ATTACHMENT(S)
A. Ordinance Amending Various Sections of Title 12
B. Ordinance Amending Title 12, Chapter 12-56, Accessory Dwelling Units Attachment A

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA
AMENDING VARIOUS SECTIONS OF TITLE 12-ZONING OF THE

SANTA MARIA MUNICIPAL CODE RELATING TO CHILD DAY CARE CENTERS,

NON-TAXABLE MERCHANDISE LIMITATIONS, TRANSITIONAL AND

SUPPORTIVE HOUSING, AND DENSITY BONUS

WHEREAS, the City of Santa Maria routinely considers technical amendments to the Municipal Code to address updates in State law, General Plan Amendments, and to correct inconsistencies as needed; and

WHEREAS, the proposed Amendments are consistent with the City of Santa Maria General Plan; and

WHEREAS, on July 1, 2026, the Planning Commission of the City of Santa Maria held a noticed public hearing and voted to recommend that the City Council adopt the proposed amendments to Title 12 of the Santa Maria Municipal Code; and

WHEREAS, on August 4 , 2026 , the City Council conducted a noticed public hearing.

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

SECTION 1. Title 12, Chapter 12-5, Section 12-5.03 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-5.03 Permitted uses.

The following uses shall be permitted in the RA district:
(a) Dwellings, single-family, and accessory dwelling units; (b) Keeping of cattle, sheep, goats or horses on a lot or parcel of land having an area of not less than two acres; provided, that not more than two such animals per acre are permitted, including the supplementary feeding of such cattle, sheep, goats or horses; provided further, that such grazing is not a part of nor conducted in conjunction with any dairy, livestock feedyard, livestock sales yard or commer cial riding academy located on the same premises. No buildings, structures, pens or corrals designed or intended to be used for the housing or concentrated feeding of such stock shall be used on the premises for such grazing other than racks for supplement ary feeding, troughs for watering or incidental fencing;
(c) Tree farming;
(d) Home occupations subject to the home occupation regulations contained in Chapter 12-29 of this title.
(e) Cottage food operations when in accordance with the requirements establ ished in Chapter 12-29B of this title.

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(f) Transitional Housing (as defined in Government Code Section 65582) (g) Supportive Housing (as defined in Government code Section 65582 and implemented in Health and Safety Code Section 50675.14)
(h) Employee housing providing accommodation for six or fewer employees ( as defined in Health & Safety Code Section 17021.5)
(I) Employee housing meeting the provisions of Health and Safety Code Section 17021.6

SECTION 2. Title 12, Chapter 12-6, Section 12 -6.03 and 12-6.04 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-6.03 Permitted uses.

The following uses are permitted in the R-1 district:
(a) Home occupations subject to home occupation regulations. See Chapter 29 of this title;
(b) Single-family dwellings, and accessory dwelling units; (c) Crop and tree farming;
(d) Care of nonrelated persons (six or less persons);
(e) Keeping of household pets, aviaries and greenhouses for domestic or hobby use; such structures shall comply with provisions contained in Chapter 12 -27, Accessory Structures. The keeping of roosters, goats, sheep, pigs, horses, cows or similar animals is specifically prohibited;
(f) Small family day care homes;
(g) Large family day care homes when located in a single-family residence and when in accordance with requirements established in Chapter 12-29A of this title; (h) Cottage food operations when in accordance with the requirements established in Chapter 12-29B of this title.
(i) Transitional Housing (as defined in Government Code Section 65582); (j) Supportive Housing (as defined in Government Code Section 65582 and implemented in Health and Safety Code Section 50675.14);
(k) Employee housing providing accommodation for six or fewer employees ( as defined in Health and Safety Code Section 17021.5);
(l) Child Day Care Center

Section 12-6.04 Conditional uses.

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Section 12-35.203. These special development conditions may include, but are not limited to:
(1) Minimum lot size,
(2) Maximum lot coverage,
(3) Hours of operation,
(4) Types of activities permitted,
(5) Building setbacks from adjacent properties,
(6) Landscape buffers,
(7) Architectural design,
(8) Property line walls,
(9) Limitations on dancing, entertainment and the serving of alcoholic beverages, (10) Lighting,
(11) Ingress and egress,
(12) Noise-attenuation measures.
(de) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (ef) A commercial parking lot, provided that the commercial use is contiguous to the residentially zoned lot. If a dedicated public alley lies between the commercial use and the residentially zoned lot, the property may be determined to be contiguous to the residentially zoned lot;
(fg) Care of non-related persons, seven or more persons.

SECTION 3. Title 12, Chapter 12-6A, Section 12-6A.03 and 12-6A.04 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-6A.03 Permitted uses.

The following uses are permitted in the RSL-1 district:
(a) Home occupations subject to a home use permit. See Chapter 29 of this title; (b) Single-family dwellings, and accessory dwelling units; (c) Crop and tree farming;
(d) Care of nonrelated persons (six or less persons);
(e) Keeping of household pets, aviaries and greenhouses for domestic or hobby use; such structures shall comply with pro visions contained in Chapter 12 -27, Accessory Structures. The keeping of roosters, goats, sheep, pigs, horses, cows or similar animals is specifically prohibited;
(f) Small family day care homes;
(g) Large family day care homes when located in a single -family residence and when in accordance with requirements established in Chapter 29A; (h) Cottage food operations when in accordance with the requirements established in Chapter 12-29B of this title.
(j) Transitional Housing (as defined in Government Code Section 65582); (j) Supportive Housing (as defined in Government Code Section 65582 and implemented in Health and Safety Code Section 50675.14);
(k) Employee housing providing accommodation for six or fewer employees ( as defined in Health & Safety Code Section 17021.5);
(l) Child Day Care Center

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Section 12-6A.04 Conditional uses.

(a) Churches;
(b) Child day care centers;
(bc) Public and private schools;
(cd) Lodges and clubs, subject to the special development standards in Section 12 -

6.04(c)16.

SECTION 4. Title 12, Chapter 12-7, Section 12 -7.03 and 12 -7.04 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-7.03 Permitted uses.

The following uses are permitted in the R-2 district:
(a) Single-family dwellings when they meet all requirements set out in the R-1 district, and accessory dwelling units when allowed pursuant to Section 12-56.01(c); (b) Duplexes;
(c) Two detached dwelling units;
(d) Home occupations subject to obtaining a home use permit. See Chapter 12-29 of this title;
(e) Care of nonrelated persons (six or less persons);
(f) Small family day care homes;
(g) Keeping of household pets, aviaries and greenhouses for domestic or hobby use; such structures shall comply with provisions contained in Chapter 12 -27, Accessory Structures. The keeping of roosters, goats, sheep, pigs, horses, cows or similar animals is specifically prohibited;
(h) Large family day care homes when located in a single -family residence and when in accordance with requirements established in Chapter 12-29A of this title; (i) Cottage food operations when in accordance with the requirements established in Chapter 12-29B of this title.
(j) Transitional Housing (as defined in Government Code Section 65582) (k) Supportive Housing (as defined in Government Code Section 65582 and implemented in Health and Safety Code Section 50675.14)
(l) Employee housing providing accommodation for six or fewer employees (as defined in Health and Safety Code Section 17021.5);
(m) Child Day Care Center

Section 12-7.04 Conditional uses.

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zone, shall be permitted in the R -2 district subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12-3 of this title:
(a) Dwelling groups, triplexes and fourplexes, when density requirements can be met; (b) Churches;
(c) Public utility uses;
(d) Child day care centers;
(de) Private schools;
(ef) Care of nonrelated persons (seven or more persons); (fg) Lodges and clubs, subject to the special development conditions as determined by the Planning Commission, on a case-by-case basis, as necessary to ensure maximum compatibility with adjacent land uses and to make the required findings specified in Section 12-35.203. These special development conditions may include, but are not limited to:
(1) Minimum lot size,
(2) Maximum lot coverage,
(3) Hours of operation,
(4) Types of activities permitted,
(5) Building setbacks from adjacent properties,
(6) Landscape buffers,
(7) Architectural design,
(8) Property line walls,
(9) Limitations on dancing, entertainment and the serving of alcoholic beverages, (10) Lighting,
(11) Ingress and egress,
(12) Noise-attenuation devices;
(gh) A commercial parking lot, provided that the commercial use is contiguous to the residentially zoned lot. If a dedicated public alley lies between the commercial use and the residentially zoned lot, the property may be determined to be contiguous to the residentially zoned lot;
(hi) An increase in pi peline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (ij) Residential developments with a total of three or more dwelling units on the property.

SECTION 5. Title 12, Chapter 12-8, Section 12 -8.03 and 12 -8.04 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-8.03 Permitted uses.

The following uses are permitted in the R-3 district:
(a) Single-family dwellings, including accessory dwelling units as allowed by Section 12-

56.01(c); duplexes and triplexes;
(b) Group dwellings;
(c) Dwelling groups;
(d) Home occupations, subject to home use permits. See Chapter 12-29 of this title; (e) Keeping of household pets, aviaries and greenhouses for domestic or hobby use; such structures shall comply with provisions contained in Chapter 12 -27, Accessory Structures. The keeping of roosters, goats, sheep, pigs, horses, cows or similar

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animals is specifically prohibited;
(f) Care of nonrelated persons (six or less persons);
(g) Small family day care homes;
(h) Large family day care homes when located in a single -family residence and when in accordance with requirements established in Chapter 12-29A of this title; (i) Cottage food operations when in accordance with the requirements established in Chapter 12-29B of this title.
(j) Transitional Housing (as defined in Government Code Section 65582) (k) Supportive Housing (as defined in Government Code Section 65582 and implemented in Health and Safety Code Section 50675.14)
(l) Employee housing providing accommodation for six or fewer employees (as defined in Health and Safety Code Section 17021.5)
(m) Child Day Care Center;

Section 12-8.04 Conditional uses.

The following uses and those similar uses which the Planning Commission finds to fall within the intent and purpose of this zone, that will not be more obnoxious or detrimental to the public welfare, are found by the commission to be compatible with adjoining land uses, and which are of a comparable nature and of th e same class enumerated for this zone, shall be permitted in the R -3 district subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12-35 of this title:
(a) Churches;
(b) Public utility uses;
(c) Child day care centers;
(cd) Private schools;
(de) Care of nonrelated persons (seven or more persons); (ef) Lodges and clubs, subject to the special development conditions as determined by the Planning Commission, on a case-by-case basis, as necessary to ensure maximum compatibility with adjacent land uses and to make the required findings specified in Section 12-35.203. These special development conditions may include, but are not limited to:
(1) Minimum lot size,
(2) Maximum lot coverage,
(3) Hours of operation,
(4) Types of activities permitted,
(5) Building setbacks from adjacent properties,
(6) Landscape buffers,
(7) Architectural design,
(8) Property line walls,
(9) Limitations on dancing, entertainment and the serving of alcoholic beverages, (10) Lighting,
(11) Ingress and egress,
(12) Noise-attenuation devices;
(fg) A commercial parking lot, provided that the commercial use is contiguous to the residentially zoned lot. If a dedicated public alley lies between the commercial use and the residentially zoned l ot, the property may be determined to be contiguous to the

Page 7 of 22 ends

residentially zoned lot;
(gh) Miniwarehouses under the following conditions:
(1) The miniwarehouse development is in a location which would provide a service to the immediate residential neighborhood,
(2) The parcel of land proposed for development must have unique characteristics which make residential development impractical. Such characteristics would include, but not be limited to, encroachment by oil wells, exposure to high noise levels and access constraints,
(3) The development of the miniwarehouse complex must be compatible with the neighborhood and have no significantly adverse effect on abutting property, (4) The miniwarehouse development standards in Section 12-15.14 of this Code shall be considered as development guidelines for miniwarehouse development in the R-3 zoning district;
(hi) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (ij) Public schools;
(jk) Residential developments with a total of four or more dwelling units on the property; (kl) Boardinghouses;
(lm) Student housing.

SECTION 6. Title 12, Chapter 12-10, Section 12-10.03 and 12-10.04 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-10.03 Permitted uses.
(a) The following uses shall be permitted in the CPO district:
(1) Art studios and art galleries;
(2) Business or professional offices;
(3) Insurance sales;
(4) Travel agencies;
(5) Photographic studios;
(6) Medical and/or dental laboratories;
(7) Medical or dental offices;
(8) Stock brokerages;
(9) Massage businesses (as defined in Section 4-18.101(m)); (10) Public utility offices;
(11) Camera and watch repair;
(12) Beauty shops;
(13) Physical fitness center/health club.
(14) Emergency shelters subject to compliance with all requirements set forth in Chapter 12-53 of this title.

(15) Child Day Care Center
(b) Those uses not listed, which are determined to be similar in nature and which are compatible with the purpose and intent of this zone, may be permitted.

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Section 12-10.04 Conditional uses.

Those similar uses which the Planning Commission finds to fall within the intent and purpose of this zone, that will not be more obnoxious or detrimental to the public welfare, are found by the Planning Commission to be compatible with adjacent properties provided that conditions and development standards are applied to mitigate any potentially adverse impacts, shall be permitted in the CPO district subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12 -35 of this title. Examples include:
(a) An apartment or living quarters for the owner, caretaker or occupant of the building site;
(b) Hospitals or convalescent hospitals;
(c) Rest homes;
(d) Pharmacies (in conjunction with a medical facility); (e) Banks and savings and loan associations;
(f) Music schools;
(g) Repealed per Ordinance No. 2005-04.
(h) Lodges and clubs;
(i) Churches;
(j) Any use associated with the above permitted office uses with drive-up, drive-in or drive- through facilities for serving customers from their vehicle; (k) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (l) Florists;
(m) Child daycare centers;
(mn) Copy service centers.

SECTION 7. Title 12, Chapter 12-11, Section 12-11.03 and 12-11.04 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-11.03 Permitted uses.

The following uses are permitted in the CC district:
(a) Bakeries;
(b) Barbershops;
(c) Delicatessens;
(d) Grocery stores;
(e) Laundry and cleaning establishments (retail to general public including self-service); (f) Pharmacies;
(g) Public utility offices;
(h) Restaurants (no sale or consumption of alcoholic beverages on the premises); (i) Beauty shops;
(j) Florist;
(K) Child Day Care Center;

Section 12-11.04 Conditional uses.

Those similar uses which the Planning Commission finds to fall within the intent and purpose of this zone, that will not be more obnoxious or detrimental to the public welfare

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and are found by the commission to be compatible with adjoining land uses, provided that conditions and development standards are applied to mitigate any potentially adverse impacts, shall be permitted in the CC district subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12 -35 of this title. Examples include:
(a) Restaurants (including sale and consumption of alcoholic beverages on the premises); (b) Banks and financial institutions;
(c) Drugstores;
(d) Penny arcades, as provided in Section 12-11.05;
(e) Any use with drive -up, drive-in or drive -through facilities for serving customers from their car, except the sale of gasoline and other fuels is prohibited; (f) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (g) An apartment or living quarters which can be occupied only by the owner, caretaker or someone associated with a business located in the building; (h) Child daycare centers;
(hi) Carpet sales.

SECTION 8. Title 12, Chapter 12-12, Section 12-12.03, 12-12.04, and 12-12.19 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-12.03Permitted uses.

The following uses are permitted in the C-1 district:
(a) Retail sales, such as:
(1) Art supply,
(2) Clothing stores,
(3) Department stores,
(4) Drugstores,
(5) Ice cream shops,
(6) Jewelry stores,
(7) Sporting goods stores,
(8) Radio, TV, stereo sales,
(9) Beauty shops;
(b) Service:
(1) Banks and financial institutions,
(2) Commercial and professional office,
(3) Restaurants,
(4) Physical fitness center/health club,
(5) Temporary buying within a hotel or motel;
(6) Child Day Care Center
(c) All uses permitted in the CC and CPO districts, except for emergency shelters; (d) Efficiency Unit Projects, subject to Chapter 12-52.

Section 12-12.04 Conditional uses.

Those uses which the Planning Commission finds to fall within the intent and purpose of this zone, that will not be more obnoxious or detrimental to the public health and welfare and are found by the commission to be compatible with adjoining land uses, provided that

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conditions and development standards are applied to mitigate any potentially adverse impacts, are permitted in the C -1 district subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12 -35 of this title. Examples include:
(a) Bars and cocktail lounges, and restaurants serving alcoholic beverages; (b) Hotels or motels;
(c) Passenger terminals;
(d) Pet shops, (exception: fish sales only does not require a CUP); (e) Lodges and clubs;
(f) Churches;
(g) Mechanical riding machines;
(h) Penny arcades, as provided in Section 12-12.05;
(i) Any use with drive -up, drive-in or drive -through facilities for serving customers from their vehicle;
(j) Temporary retail sales within a hotel or motel;
(k) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (l) Farmers' markets;
(m) Arts and crafts sales;
(n) Auditoriums;
(o) Community centers;
(p) Theaters;
(q) Concurrent retailing of motor vehicle fuel with alcoholic beverages for off -premises consumption at existing nonconforming service stations; (r) An apartment or living quarters which can be occupied only by the owner, caretaker or someone associated with a business located in the building; (s) Child daycare centers;
(st) Senior citizen housing;
(tu) Buyback recycling facility when in conjunction with an existing business; (uv) Emergency shelters subject to compliance with all requirements set forth in Chapter 12-53 of this title.

Section 12-12.19 Non-taxable merchandise limitations.

For commercial uses exceeding 90,000 square feet of gross floor area, the non -taxable merchandise floor area shall not exceed 8% of the total gross floor area of the building occupied by the commercial use.

SECTION 9. Title 12, Chapter 12-13, Section 12-13.04, and 12-13.17 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-13.04 Conditional uses.

Those uses which the Planning Commission finds to fall within the intent and purpose of this zone, that will not be more obnoxious or detrimental to the public welfare, and are found by the commission to be compatible with adjoining land uses, provided tha t conditions and development standards are applied to mitigate any potentially adverse impacts, are permitted in the C -2 district subject to obtaining a conditional use permit

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according to the procedures set forth in Article 2 of Chapter 12 -35 of this title. Examples include:
(a) Bars, cocktail lounges and restaurants serving alcoholic beverages; (b) Bowling alleys;
(c) Butane and propane service stations;
(d) Child daycare centers;
(de) Nightclubs;
(ef) All other automotive repair shops, including body and fender repair shops; (fg) Service stations;
(gh) Veterinary clinics;
(hi) Repealed per Ordinance 2005-04.
(ij) Car washes;
(jk) Light wholesale uses which supply goods and materials which are sold in retail stores permitted in the C-1 district and C-2 district; provided, however, that the uses do not generate significant truck traffic;
(kl) Lodges and clubs;
(lm) Churches;
(mn) Mechanical riding machines;
(no) Penny arcades, as provided in Section 12-13.05;
(op) Automobile sales;
(pq) Boat sales;
(qr) Bus and taxi terminals;
(rs) Nurseries;
(st) Trailer sales;
(tu) Recreational vehicle sales;
(uv) Any use with drive-up, drive-in or drive-through facilities for serving customers from their vehicle;
(vw) Temporary retail sales within a hotel or motel;
(wx) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (xy) Tractor and farm equipment sales;
(yz) Tire sales and service;
(zaa) Concurrent retailing of motor vehicle fuel with alcoholic beverages for off-premises consumption;
(aabb) An apartment or living quarters which can be occupied only by the owner, caretaker or someone associated with a business located in the building; (bbcc) Buyback recycling facility when in conjunction with an existing business; (ccdd) Emergency shelters subject to compliance with all requirements set forth in Chapter 12-53 of this title.

Section 12-13.17 Non-taxable merchandise limitations.

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SECTION 10. Title 12, Chapter 12-15, Section 12-15.03, and 12-15.05 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-15.03 Permitted uses.
(a) Industrial, manufacturing and non-public-oriented office uses conducted entirely within an enclosed building, subject to the prescribed performance standards contained in Article 3 of Chapter 12-33 of this title, are permitted in the M-l district. Examples include:
(1) Administrative, executive and date processing offices when incidental and accessory to and directly related to primary industrial or manufacturing uses permitted in this zone;
(2) Non-public-oriented offices which do not provide services or cater to the general public, other than those listed under Section 12-15.04; (3) Scientific research and experimental development laboratories; (4) Architects, engineering and industrial design offices; (5) Light assembly;
(6) Manufacturing, processing and packaging of pharmaceuticals and drugs; (7) Manufacturing, processing and packaging of scientific, optical, medical, dental and precision instruments;
(8) Printing, publishing and allied industries;
(9) Warehousing and wholesale distributors; terial;
(10) Manufacturing, assembling, packaging and processing of articles or products from previously prepared ma-
(11) Limited retail sales when the product sold is manufactured, fabricated or assembled on site. The retail sales activity shall not provide service to or cater to or attract the general public;
(12) The storage of flammable liquid in underground tanks, with a capacity not exceeding 50 gallons, in conjunction with other permitted uses of the zone; (13) Uses not listed may be permitted upon determination by the Planning Commission to be compatible with the purpose of this zone; (14) Baker (wholesale);
(15) Wholesale and/or retail sales, when such use(s) are within 1,000 feet of the U.S.

Highway 101 and Stowell Road interchange. Restaurants, as an accessory use to the wholesale/retail outlet, may be permitted provided the total floor area of all restaurants does not exceed 10,000 square feet. Retail and restaurant uses within this section are required to comply with parking requirements outlined in 12-32.03 for commercial or restaurant uses.
(16) Child Day Care Center, when associated with, and integrated into, a facility that is a permitted or conditional use;

Section 12-15.05 Conditional uses.

The following uses and those similar uses which the Planning Commission finds to fall within the purpose of this zone, that will not be more obnoxious or detrimental to the public welfare, and are found by the commission to be co mpatible with adjoining land uses, provided that conditions and development standards are applied to mitigate any potentially adverse impacts, are permitted in the M -1 district subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12-35

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and subject to the development standards of Section 12-15.06:

(a) Industrial or manufacturing uses which involve the screened outside storage of materials or products provided the outside storage area does not exceed 15% of the lot area and is to the side or rear of the building(s), and provide the outside storage area incorporates landscaping to maintain compatibility with the prescribed performance standards contained in Article 3 of Chapter 12-33 of this title. (b) Miniwarehouses, subject to the development regulations in Section 12 -15.14 of this Code;
(c) Manufacturing and industrial enterprises which, as evidenced by findings in a resolution adopted by the Planning Commission, are compatible and harmonious with nearby existing and permitted uses;
(d) Any use involving the storage or handling of explosive materials, the storage or handling of blasting agents, or the storage or handling of flammable liquids in aboveground tanks;
(e) An increase in pipeline capacity throu gh the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (f) Truck terminals where the docks and truck parking are behind the buildings or screened by landscaping and walls;
(g) Child care, when associated with, and integrated into, a facility that is a permitted or conditional use;
(gh) Tractor and heavy equipment sales and service facilities, including landscaped outdoor display and screened storage, when located adjacent to U.S. Highway 101;
(hi) Churches within an existing building;
(ij) Expansion of existing church;
(jk) Establishment of a recreational vehicle storage yard.

SECTION 11. Title 12, Chapter 12-16, Section 12-16.03, and 12-16.05 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-16.03 Permitted uses.

The following uses are permitted in the C -M (commercial/manufacturing) district subject to the prescribed performance standards contained in Article 2 of Chapter 12 -33 of this title:
(a) Manufacturing, such as:
(1) Baker (wholesale),
(2) Cabinet shop;
(b) Processing, such as:
(1) Blueprinting and photocopying,
(2) Carpet and rug cleaning plant,
(3) Bottling plant,
(4) Laboratory (medical or scientific);
(c) Wholesaling, warehousing and storage, not open to the general public, such as:
(1) Wholesaling and warehousing facilities,
(2) Van and storage,

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(3) Feed and fuel,
(4) The storage of flammable liquid in underground tanks, subject to approval by the fire marshal;
(d) Utilities, such as:
(1) Distribution plants,
(2) Utility substations;
(e) Repair and equipment services, such as:
(1) Automotive repair and service facilities excluding conditional uses listed in 12 -

16.05;
(2) Equipment rental and/or service;
(f) Other:
(1) Heavy retail business when the business is contained wholly within a building, (2) Administrative or executive offices when incidental and accessory to and when directly related to the primary industrial or manufacturing uses permitted in the zone.
(3) Child Day Care Center when associated with, and integrated into, a facility that is a permitted or conditional use

Section 12-16.05 Conditional uses.

Those similar uses which the Planning Commission finds to fall within the intent and purpose of this zone, that will not be more obnoxious or detrimental to the public welfare, and are found by the Planning Commission to be compatible with adjoining land uses, provided that conditions and development standards are applied to mitigate any potentially adverse impacts, are permitted in the CM distr ict subject to obtaining a conditional use permit according to the procedures set forth in Article 2 of Chapter 12-35 of this title and subject to the development standards of Section 12 -16.06. Examples include:
(a) Screened material storage yard;
(b) Screened utility yard;
(c) Mini-warehouses subject to the development standards in Section 12-15.14; (d) Screened storage yard;
(e) Any screened outside storage use;
(f) Any use involving the storage or handling of explosive materials. The storage or handling of blasting agents, or the storage or handling of flammable liquids in aboveground tanks;
(g) Kennels;
(h) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (i) Commercial vehicle sales, service, or rental facilities; (j) Commercial batting cage facilities when contained within a building; (k) Automotive body and fender repair and/or automotive painting; (l) Heavy retail businesses which are not totally contained within a building; (m) Tire sales and service;
(n) Auto detailing;
(o) Auto wash;
(p) Transmission repair and service;

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(q) Screened vehicular parking and storage in conjunction with an existing non - conforming auto salvage yard;
(r) Additions to existing churches located on single tenant building sites; (s) Child day care centers;
(st) Recycling, including outside storage;
(tu) Trucking terminals;
(uv) An apartment or living quarters for the caretaker of a building site; (vw) Physical fitness centers/health club;
(wx) Pallet making;
(xy) Camper sales and service;
(yz) Churches within an existing building;
(zaa) Expansion of existing church.

SECTION 12. Title 12, Chapter 12-17, Section 12-17.03, and 12-17.05 of the Santa Maria Municipal Code is hereby amended as follows:

Section 12-17.03 Permitted uses.
(a) The following uses shall be permitted in the M -2 (general manufacturing) district, subject to the prescribed performance standards contained in Chapter 12 -33 of this title:
(1) Boat manufacture;
(2) Heavy equipment assembly;
(3) Welding operations;
(4) Sheet metal fabrication;
(5) Storage of flammable liquid in underground tanks, subject to fire marshal approval; (6) Administrative or executive offices when incidental and accessory to and when directly related to primary industrial or manufacturing uses permitted in the zone. (7) Child Day Care Center when associated with, and integrated into, a facility that is a permitted or conditional use.
(b) Uses not listed may be permitted upon determination by the Planning Commission to be compatible with the purpose and intent of this zone.

Section 12-17.05 Conditional uses.

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aboveground tanks;
(c) Food processing plants;
(d) Salvage yards;
(e) Miniwarehouses subject to the development standards in Section 12-15.14; (f) An increase in pipeline capacity through the repair, maintenance, replacement or installation of new pipelines as defined in Section 12-2.113.1; (g) Pallet making;
(h) Greenhouses;
(i) Child daycare facilities as an accessory use;
(ij) Battery Energy Storage Systems ("BESS") as a primary or ancillary use, that are a "Front-of-the-Meter" facility, meaning the energy storage collection systems are connected to the distribution system on the utility side of the meter. (For the purposes of this Title, BESS is a un ique use from a Substation, Utility Substation, Electrical Substation, Public Utility Structures, Distribution Plant, Utility Distribution Station, Utility Yard, Public Service Facility, or any other Public or Private utility use cited in this Title).

SECTION 13. Title 12, Chapter 12-48, Density Bonus, of the Santa Maria Municipal Code is hereby amended in its entirety as follows:

Section 12-48.01. Purpose and Intent.

The Housing Element of the General Plan sets forth various goals and policies to encourage a variety of housing types and costs at affordability levels to serve the various economic needs of all residents within the community. It is the intent of the City to further encourage the provision development of housing affordable to lower cost, very low, low, and moderate costincome level householdsand, senior citizen housing, and housing for State specified targe ted special needs populations such as transitional foster youth, disabled veterans, and homeless persons, and students (herein after refer red to collectively in this cChapter as “affordable and special needs housing”) by providing athis Chapter as the City density bonus programordinance, to implement State Density Bonus Law per Government Code Section 65915 et seq., or successor sections.

Section 12-48.02. Compliance with California Density Bonus Law. Government Code Section 65915

In accordance with Government Code Section 65915 et seq., or successor sections, the Planning Commission and/or City Council shall provide grant the developer incentives more units than the General Plan or Zoning Ordinance would normally allow, for the production of moderate income, lower income, very low income or senior affordable and special needs housing units when the developer proposed project meets the requirements set forth in Section 65915 et seq., or successor sections .this chapter. In the event t he Legislature amends specific requirements of Section 65915 et seq. or successor sections, those amendments shall control and apply in Santa Maria pending further amendment of this Cchapter. Terms used in this Chapter shall be interpreted as defined in, or otherwise cited by, Government Code Section 65915 et seq. or successor sections.

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Section 12-48.03. Projects Eligible for a Density Bonuses.

Any housing development of five or more units , conforming to the provisions of Government Code Section 65915 et seq. or successor sections, as defined by 50073.5 the Health and Safety Code, any senior citizen housing development as defined in Section 51.3 of the Civil Code, any mobilehome park that limits residency to older persons pursuant to Civil Code § 798.76 or 799.5, and any common interest development project as defined below, shall be entitled to a density increase over the otherwise maximum allowable gross residential density, as of the date of application by the applicant to the cCity, density bonus resulting in additional dwelling units above the maximum number of dwelling units otherwise allowed by the General Plan and this tTitle,in with the amount number of additional units being calculated based upon the criteria as specified by Government Code S ection 65915 et seq. or successor sections. (g), if the proposed development project meets the following minimum criteria:
(a) Ten percent of the total units in the project, before the density bonus is applied, is reserved for lower income households as defined in Section 50079.5 of the Health and Safety Code; or
(b) Five percent of the total units in the project, before the density bonus is applied, is reserved for very low income households, as defined in Section 50105 of the Health and Safety Code; or
(c) Fifty percent of the total units in the project, before the density bonus is applied, is reserved for qualifying residents as specified in Section 51.3 of the State Civil Code; or
(d) Ten percent of the total dwelling units in a Civil Code § 1351 common interest development project, before the density bonus is applied, are reserved for persons and families of moderate income, provided that all of the units are offered to the public for purchase.

Section 12-48.04. Additional Incentives for Affordable Units.

(a) In addition to the density bonus provided by Section 12-48-03, the City shall, through a planned development permit, agreement, or subdivision, grant additional incentives or concessions in the number specified by subsection (d)(1) of Government Code Section 65915. Examples include:
(1) Reducing or waiving development standards, modifying or waiving zoning requirements (including minimum lot size or setbacks), and modifying architectural design requirements or Public Works requirements which result in identifiable cost reductions; or
(2) Providing other regulatory incentives or concessions proposed by the developer or the City, so as to result in identifiable cost reductions; or

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(3) Allowing the developer to pay development impact fees over a period of time not to exceed three years in equal installments. The terms of an approval under this section shall be reflected in a written agreement containing provisions for interest and security approved by the Finance Director and City Attorney; or (4) Approving mixed-use zoning in conjunction with the project. (b) The applicant for a density bonus may submit a proposal requesting specific concessions or incentives to staff for Commission or Council consideration. In the case of a proposal that would not qualify for additional concessions or incentives due to t he small number of units proposed, the applicant may request to substitute a specific concession or incentive in place of a density bonus. (c) The Commission or Council shall grant a requested concession or incentive for a project described in Section 12 -48.03, subsections (a) through (d), unless it makes a written finding based on substantial evidence either:
(1) that the additional incentive is not required in order to provide for affordable housing costs as defined in Section 50052.5 of theHealth and Safety Co de or for rents for the targeted units as specified in Section 65915(c) of the California Government Code; or
(2) The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon the public health and safety or upon the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low - and moderate-income households.

Section 12-48.05. Additional Density Bonus For Donation of Land To City; Additional Density Bonus Or Incentive/Concession for Child Care. (a) When an applicant for approval of a residential development donates land to the City according to the requirements of Government Code Section 65915(h), or successor section, the applicant shall receive an additional density bonus. (b) When an applicant proposes to construct a housing development as described by Section 12-48.03 and includes a child care facility as defined by Government Code §65915(i), the applicant shall receive either an additional density bonus or an additional incentive or concession according to the terms of Government Code Section 65915(i), or successor section.

Section 12-48.06. Repealed.

Section 12-48.06 was repealed in its entirety and deleted per Ordinance 2006-17.

Section 12-48.074. Procedure for Density Bonus.

Applications for residential projects that also request a density bonus which will increase

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the density beyond that otherwise allowed in a specified zoning district, shall be processed in a manner consistent with procedures for a standard residential project proposing residential dwellings of the same type in the same in its designated zoning district. Developers requesting incentives described in 12 -48-04(a)(1), however, shall apply for a planned development (PD) permit per Section 12 -35 whether or not the project site is located in a planned development overlay zone.The PD process allows discretionary review of the project to implement the incentives and appropriate enforcement measures.

The developer may submit to the Community Development Department a written proposal for a project pursuant to this chapter prior to the submittal of any formal development applications. Within 90 days of receipt of a proposal, the City shall notify the developer, in writing, of the procedures to be followed to comply with the requirements of this chapter.

The application materials submitted by the developer must clearly indicate theeach requested incentive(s) or concession(s) pursuant to Government Code Section 65915 subdivision (d) and/or waiver(s), or modification(s) of development standards pursuant to Government Code Section 65915 (e) are necessary to make the proposed housing units economically feasible . Additional information for density bonus projects required when the proposal project application is submitted include:
(a) A written description that specifies the number type, location, size and construction scheduling of units in the project which will be designated as the affordable or senior units. of dwelling units permitted by the City of Santa Maria General Plan and Municipal Code for the zoning designation of the project site, (b) Indication of the percentage income level of the proposed dwelling units that will be reserved for moderate, low or very low income or senior households. (c) Preliminary plans which depict the proposed income level of dwelling units in the project which will be designated as the affo rdable and/or special needs housing units, and the resulting total units and density (units per acre) of the proposed project.
(d) An explanation of the methods to be used to verify tenant and/or buyer incomes and to maintain affordability of the affordable ho using units, and the financing mechanism for ongoing administration and monitoring of the affordable housing units.
(e) Any proposed phasing of the construction of the affordable and special needs housing units in relation to the nonrestricted units in the housing development. (f) Reasonable documentation demonstrating that the proposed housing development qualifies and is eligible for the requested bonus residential units by addressing the provisions of Government Code Section 65915(b)(1).
(g) A description of all dwelling units existing on the site, and/or that existed on the site in the five-year period preceding the date of submittal of the application.

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(i) If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. (ii) If any dwelling units on the site were rented in the five -year period but are not currently rented, the income and household size of residents occupying the dwelling units when the site contained the maximum number of dwelling units, if known.

Section 12-48.085. Affordable Housing Density Bonus Agreement.

(a) To be eligible for a density bonus, the developer must sign a binding agreement with the City, approved as to form by the City Attorney's office, which sets forth the conditions and requirements to be met in the implementation of the density bonus program. The Agreement will also establish specified compliance standards and remedies available to the City upon failure by the developer to make units accessible to intended household income level(s) and/or special needs households. The relevant terms and conditions of the density bonus agreement shall be filed and recorded on those individual lots or units of a project development which are designated for the location of target dwelling units. (b) The term of the agreement shall be at least 30 years, or such other period as may be required by a financing program for the project.

(c) When the agreement pertains to moderate -income units in a common interest development, the agreement shall contain provisions for equity sharing as required by Government Code Section 65915(c), or successor section.

Section 12-48.096. Requirements for Participation.

In order for a developer to participate in the density bonus program and be eligible for incentives, the following requirements must be met:
(a) The developer shall set aside, per the approved agreement, the number of units which are designated for affordable and/or moderate, low, very low or senior special needs housing households. A unit will be counted toward meeting the set -aside requirement if it is either vacant or occupied by a qualified resident.

(b) The targetaffordable and special needs housin g units must be compatible in floor plan, furnishings, and exterior design to the non -designated units. Further, the targetaffordable and special needs housing units must be equally dispersed in each phase throughout the development.

(c) The maximum allowable rents to comply with the density bonus law are determined by a formula designated by the State Department of Housing and Community Development based on area median income.

(d) Dwellings sold per the agreement shall be affordable to the designated income households as defined by income limits established by the State Department of

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Housing and Community Development based on area median income.

(e) The developer shall provide to the Community Development Department a yearly accounting of the total units occupied, the total units vacant, the total units occupied by lower or very low income households, and the total by which the units set aside fell short of the required number of units. The distribution (location) of the affordable units must also be shown.

SECTION 14. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and the City’s environmental procedures and has been found to be exempt pursuant to Section 15061(b)(3) (common sense exemption) of the CEQA guidelines. The City Council finds that there is no possibility the passage of this Ordinance amending the zoning code will have a significant effect on the environment because the changes are administrative in nature and do not approve specific development projects. Any future development projects utilizing the provisions of this Ordinance will be subject to separate environmental review under CEQA, as applicable, based on their specific characteristics, location, and potential impacts. Thus, the ordinance itself does not foreseeably result in construction activities or physical changes to the environment, either directly or indirectly.

SECTION 15. If any part or provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable.

SECTION 16. 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.

SECTION 17. This Ordinance shall be in full forc e and effect thirty (30) days after its passage. Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

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INTRODUCED at a regular meeting of the City Council held on the 4th day of August, 2026, and PASSED AND ADOPTED at a regular meeting held on the ____ day of ___________________, 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

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

Attachment B

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA
AMENDING TITLE 12, “ZONING,” CHAPTER 12-56 “ACCESSORY
DWELLING UNITS” OF THE CITY OF SANTA MARIA MUNICIPAL CODE

WHEREAS, State law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and

WHEREAS, in recent years, the California legislature has approved, and the Governor has signed into law, numerous bills revising the State law as it relates to ADUs (Government Code Section 66314 et seq.) and JADUs (Government Code Section 66333 et seq.); and

WHEREAS, during the 2025 legislative session, the legislature passed and the Governor signed four new bills further amending the State ADU/JADU laws, namely AB 462, AB 1154, SB 9 and SB 543; and

WHEREAS, the City desires to amend its local regulatory scheme for the processing and construction of ADUs and JADUs in order to comply with current California law; and

WHEREAS, on July 1, 2026, the Planning Commission conducted a noticed public hearing and voted to recommend that the City Council adopt the ADU /JADU ordinance; and

WHEREAS, on August 4 , 2026 , the City Council conducted a noticed public hearing.

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

SECTION 1 . Title 12, Chapter 12-56 of the Santa Maria Municipal Code is hereby amended in its entirety to read as follows:

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“CHAPTER 12-56 ACCESSORY DWELLING UNITS
Section 12-56.01. Purpose.

The purpose of this Chapter is to allow and regulate Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in compliance with California Government Code Sections 66314 et seq. and 66333 et seq. The intent is to encourage the orderly development of ADUs and JADUs that contribute needed housing.

Section 12-56.02. Effect of Conforming.

An ADU or JADU that conforms to the standards in this section will not be:
(1) Deemed to be inconsistent with the City’s General Plan land use designation and zone district for the lot on which the ADU or JADU is located. (2) Deemed to exceed the allowable dwelling unit density for the lot on which the ADU or JADU is located.
(3) Considered in the application of any City ordinance, policy, or program to limit residential growth.
(4) Required to co rrect a Nonconforming Zoning Condition, as defined below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code Section 17980.12.

Section 12-56.03. Definitions.

Accessory Dwelling Unit (ADU). An attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same lot as the single -family or multi-family dwelling is or will be situated. An Accessory Dwelling Unit also includes the following:
(1) An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and
(2) A manufactured home, as defined by Section 18007 of the California Health and Safety Code.

Accessory Structure. A structure that is accessory and incidental to a dwelling located on the same lot.

Efficiency Kitchen. A kitchen that includes a cooking facility with appliances and a food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.

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Existing Structure. For the purposes of defining an allowable space that can be converted to an accessory dwelling unit, within the proposed space of an existing structure means within the four walls and roofline of any existing structure that can be made safely habitable under local building codes at the determination of the building official regardless of any non-compliance with zoning standards.

Junior Accessory Dwelling Unit (JADU). A residential unit that:

(1) Is no more than 500-square-feet in size of interior livable space;

(2) Is contained entirely within a single-family residence or attached garage;

(3) Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family dwelling. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family dwelling in addition to an exterior entrance that is separate from the main entrance to the primary dwelling; and

(4) Includes an efficiency kitchen as defined herein.

Living Area. The interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

Livable Space . A space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

Multi-Family Dwelling. Any structure designed for human habitation that has been divided into two or more legally created independent living quarters.

Nonconforming Zoning Condition. A physical improvement on a property that does not conform with current zoning standards.

Passageway. A pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.

Public Transit. A location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

Section 12-56.04. Approval Requirements.
(1) Approval of ADUs and JADUs in conformance with Government Code Section 66323. The Community Development Director shall ministerially approve an application for an ADU or JADU that complies with each of the general requirements in Section 12-56.04(1a through d) with a building permit for any of the following units, or any combination of the following units:

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(a) Converted on a single-family dwelling lot.
(i) One ADU on a lot with a proposed or existing single-family dwelling on it, where the ADU:

1. Is either:
a. Within the space of a proposed single -family dwelling; or
b. Within the space of an existing single -family dwelling; or
c. Within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion
is limited to accommodating ingress and egress; and

2. Has exterior access that is independent of that for the proposed or existing single-family dwelling; and

3. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.

(ii) One JADU within the space of an existing or proposed single -family dwelling or attached garage in compliance with the requirements of Government Code Section 66333.

1. When a garage is converted to a JADU, onsite replacement parking shall be provided in conformance with Chapter 12-32.

Covered parking is not required.

(b) Limited detached on a single-family dwelling lot. One detached, new construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be esta blished on the lot under Section 12 -56.04(1)(a)(ii) above), if the detached ADU satisfies the following limitations:
(i) The side and rear setbacks are at least four feet.
(ii) The floor area is a maximum of 800-square-feet of livable space. (iii) The height does not exceed the applicable height limit in subsection 12-56.05(1)(b), below.

(c) Converted on multi-family dwelling lot.
(i) Multiple ADUs within portions of existing multi -family dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings.

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(ii) At least one converted ADU is allowed within an existing multi-family dwelling, and up to 25 percent of the existing multi-family dwelling units may each have a converted ADU under this subsection.

(d) Limited detached on multi-family dwelling lot. On a lot with an existing multi-family dwelling, not more than eight detached ADUs. However, in this instance the n umber of ADUs allowable shall not exceed the number of existing units on the lot. On a lot with a proposed multi -family dwelling, not more than two detached ADUs. In both instances, each detached ADU shall meet the following requirements:
(i) The side and rear yard setbacks are at least four feet. If the existing multi-family dwelling has a rear or side yard setback of less than four feet, the City will not require any modification to the existing multi - family dwelling as a condition of approving the ADU.
(ii) The height does not exceed the applicable height limit in subsection 12-56.05(1)(ab), below.

(2) Approval of ADUs not in conformance with Government Code Section 66323.

Except as allowed under subsection 12 -56.04(1) above, one attached or one detached ADU shall be allowed for each lot with a single -family dwelling or in connection with a proposed single -family dwelling for a vacant lot. No ADU may be constructed or legalized without obtaining a building permit in com pliance with the development standards contained in Section 12-56.05, below.

Section 12-56.05. Development Standards for ADUs and JADUs.

(1) The following requirements apply to all ADUs and JADUs that are approved under Sections 12-56.04(1) and (2), above:

(a) Zoning. ADUs may be permitted on lots in a residential or mixed-use zoning district with an existing legal single -family or multi -family dwelling, or in connection with a proposed single -family or multi -family dwelling for a vacant lot. JADUs are only permitted on lots that are zoned for single-family residential (R -1 & RSL -1) with an existing or proposed single -family dwelling.

(b) Height.

(i) A detached ADU created on a lot with an existing or proposed single- family dwelling unit may not exceed 18-feet in height. The ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. A detached ADU created on a single -family lot that a lso contains a permitted JADU may not exceed 16-feet in height.

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(ii) A detached ADU created on a lot that has an existing or proposed multi-family dwelling unit may not exceed 16 -feet in height. The height limit may be increased to 18 -feet in height if the exis ting or proposed multi-family dwelling unit has more than one story above grade or is located within one -half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resour ces Code. The ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

(iii) An ADU that is attached to the primary dwelling may not exceed 25- feet in height or the height limitation imposed by the underlying zone district that applies to the primary dwelling, whichever is lower.

Notwithstanding the foregoing, ADUs subject to this subsection may not exceed two stories.

(iv) For purposes of this section, height is the vertical distance between the existing legal grade and the uppermost point of the roof of the structure directly above that legal grade.

(c) Minimum Size. The minimum floor area of an ADU is 150-square-feet for a standard unit. An “efficiency unit” ADU, in accordance with California Health and Safety Code Section 17958.1, may be a minimum of 150-square-feet.

(d) Owner Occupancy. For all JADUs that have shared sanitation facilities with the existing structure, either the primary dwelling unit or the newly created JADU shall be owner -occupied as a primary dwelling unit and permanent residence by the property owner(s). Owner-occupancy shall not be required if the owner is another government agency, land trust, or housing organization.

(i) If the Zoning Administrator determines that neither of the units is occupied by the property owner, the approval of the JADU shall terminate immediately and the unit shall not be rented, leased, or occupied as a separate dwelling.

(ii) For the purposes of this Chapter, the property owner is the majority owner of the property as shown in the most recent Santa Barbara County assessor’s roll. If there is more than one property owner on record, the owner with the majority interest in the property shall be deemed the property owner. Any property owner of record holding an equal share interest in the property may be deemed the majority property owner.

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(iii) Covenant Agreement. A covenant agreement is required prior to the issuance of a building permit. The covenant agreement shall state that:

1. The JADU shall not be sold separately.;

2. The JADU is restricted to the approved size;

3. If the JADU has shared sanitat ion facilities with the existing structure, Tthe property owner is required to reside in the primary dwelling unit or the JADU;

4. The use of the JADU shall be in effect only so long as the property is in compliance with the provisions of this Chapter;

5. The above declarations are binding upon any successo r in ownership of the property, lack of compliance shall be cause for code enforcement;

6. The covenant agreement shall terminate upon removal of the JADU; and

7. The covenant agreement shall be recorded with the County Recorder of the County of Santa Barbara at the expense of the property owner.

(e) No separate conveyance. Except as provided in Government Code Section 66340 et seq. , no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single - family dwelling lot) or from the lot and all of the dwellings (in the case of a multi-family dwelling lot). All restrictive covenants, and other co ntractual agreements with the City apply to the property. No JADU may be sold or otherwise conveyed separately from the single family residence.

(f) Rental of Unit. Rental of the ADU or JADU shall be for a term longer than 30 days.is allowed for not less than 30-days

(g) Building Codes. Local building code requirements apply to ADUs and JADUs, as appropriate.

(h) Passageway. No passageway shall be required in conjunction with the construction of an ADU.

(i) Fire Sprinklers. Fire sprinklers are required in an ADU or JADU if sprinklers are required in the primary residence. The construction of an ADU or JADU does not trigger a requirement for fire sprinklers to be installed in the primary dwelling.

Page 8 of 14 ends

(j) Utility Meters. ADUs and JADUs shall not be considered new residentia l uses for the purpose of calculating utility connection fees or capacity charges, including water and sewer service. ADUs and JADUs contained within an existing residence or an existing accessory structure are not required to install new or separate utili ty connections or pay a related connection fee or capacity charge. For new attached and detached ADUs, the connection fee and/or capacity charge must be proportionate to the burden of the unit on the water or sewer system based on either its square feet or the number of its drainage fixture unit (DFU) values, as defined by the Plumbing Code.

(k) Development Impact Fees.

(i) No development impact fees are required for an ADU that has 750- square-feet of interior livable space or less or a JADU . is less than 750- square-feet in floor area. For purposes of this subsection, “impact fee” means a “fee” under the Mitigation Fee Act (Government Code Section 66000(b)) and a fee under the Quimby Act
(Government Code Section 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.

(ii) Any development impact fee that is required for an ADU that has more than is 750-square-feet of interior livable space shall or larger in floor area must be charged proportionately in relation to the square footage of the primary dwelling unit. “Development impact fee” here does not include any connection fee or capacity charge for water or sewer service. The amount of the required fee shall be determined by adopted fee Resolutions and ordinances and applicable law in effect when paid.

(2) The following requirements apply to all ADUs and JADUs that are approved under Section 12-56.04(2), above:

(a) Maximum Size.

(i) The maximum size of an ADU is as follows:

1. 850-square-feet of interior livable space for a studio or one- bedroom ADU.

2. 1,000-square-feet of interior livable space for an ADU with two or more bedrooms.

Page 9 of 14 ends

(ii) An attached ADU that is created on a lot with an existing or proposed primary dwelling is further limited to 50 percent of the floor area of the existing or proposed primary dwelling.

(iii) Application of other development standards in this Section, such as lot coverage (as applicable), might further limit the size of the ADU, but no application of the percent-based size limit above or of a front setback, lot coverage limit, or open space requirement (as applicable) may require the ADU to be less than 800-square-feet of interior livable space.

(b) Lot Coverage. No ADU may exceed 10 percent of the total lot area of the subject lot, subject to subsection 2(a)(iii) above.

(i) Side setback: Four feet
(ii) Rear setback: Four feet
(iii)Front Setback: The ADU shall be constructed in accordance with the setback of the underlying zone district, subject to Section 2(a)(iii) above. (iv)No setback is required for an ADU subject to this subsection if the ADU is constructed in the same location and to the same dimensions as an existing structure.

(d) Building Separation. The minimum separation between the primary dwelling unit and a detached ADU must be at least five feet for new construction.

(e) Parking.

(i) Parking for ADUs shall be provided at a rate of one parking space per ADU or per bedroom, whichever is less. These spaces shall be provided in conformance with Section 12-32.12, except that tandem parking is allowed for ADUs as stated in Government Code section 66314 unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon the specific site or regional topographical or fire and life safety conditions.

(ii) Parking requirements for an ADU are in addition to the required parking for the primary dwelling unit.

(iii) Parking is not required in any of the following instances:

1. The ADU is located within ½ mile walking distance of public transit.

Page 10 of 14 ends

2. The ADU is located within an architecturally and historically significant district;

3. The ADU is part of the proposed or existing primary residence or an accessory structure;

4. When on-street parking permits are required but not offered to the occupant of the ADU;

5. When a car share vehicle is located within one block of the ADU.

(f) Objective Design Standards.

(i) The materials and colors of the exterior walls, roof, windows, and doors must match the appearance of those of the primary dwelling. Samples of existing and proposed colors, materials, roofing, and features must be provided as part of a complete ADU application.
(ii) The roof pitch must match that of the dominant roof pitch of the primary dwelling. The dominant roof pitch is the pitch shared by the largest portion of the roof. Roof pitch and roof materials for a newly constructed ADU may be different from that of the primary dwelling on the lot only if accommodating installation of solar energy systems at the same time as construction of the ADU.
(iii)Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscap ing, or privacy glass may be used to provide screening and prevent a direct line of sight.

Samples of proposed vegetative screening and planting locations must be provided as part of a complete ADU application. Exceptions to this design standard apply only to conversion of legally permitted structures that do not include installation of new exterior windows facing an adjacent property line or when only clerestory windows are used and do not provide views into neighboring lots.
(iv)Two-story detached ADUs shall limit the major access to stairs, decks, entry doors, and windows to the interior of the lot or an alley and comply with all development standards. Only one (1) curb cut shall be permitted per parcel and no additional driveways or access points shall be created to accommodate the ADU or main dwelling unit.
(v) Exterior lighting shall be directed downward, fully shielded, and full cutoff or as otherwise required by the building or fire code.
(vi)Private Open Space. The main dwelling unit and the additional dwelling unit shall each be provided with a minimum of fifteen (15) feet by fifteen (15) feet of usable private open yard area, subject to subsection 2(a)(iii) above.

Page 11 of 14 ends

(g) Historical Protections. An ADU that is on real property that is listed in the California Register of Historic Resources may not alter the exterior of any structure that is designated as a historic resource or, if the entire lot is designated as a historic resource, it may not alter the exterior of any structure on the lot.

Section 12-56.06. Permit process and timing.
(1) ADUs and JADUs shall be permitted ministerially, without discretionary review or a hearing. The Community Development Director shall issue a building permit to establish an ADU and/or JADU in compliance with this Chapter if all a pplicable requirements in this Chapter are met, as appropriate.

(2) The City shall determine whether an application for an ADU or JADU is complete and provide written notice to the applicant not later than 15 business days after the City receives the applica tion. If the City determines an application is incomplete, the City shall provide the applicant with a list of incomplete items and a description of how the application can be made complete.

(3) The City shall either approve or deny the application for an ADU or JADU within 60 days from the date the City receives a completed application, unless either:

(a) The applicant requests a delay, in which case the 60 -day time period is tolled for the period of the requested delay; or

(b) If the permit application to create an ADU or JADU is submitted with a permit application to create a new single -family or multifamily dwelling on the lot, the City may delay approving or denying the permi application for the ADU or JADU until the City app roves or denies the permit application to create the new single -family or multifamily dwelling, but the application to create the AD U or JADU shall be considered without discretionary review or hearing. However, if the conditions set forth in Government Co de Section 66328 related to a state of emergency are met, a certificate of occupancy may be issued for an ADU before the certificate of occupancy is issued for the primary dwelling.

(4) If an application for an ADU or JADU is determined to be incomplete under subdivision (2) above, or denied under subdivision (3) above, the applicant may appeal the decision to the Planning Commission by submitting a written appeal filed with the Community Development Director within 14 calendar days following the written determination by the Community Development D irector. The Planning Commission shall provide a final written determination not later than 60 business days after receipt of the applicant’s written appeal.
(5) The City must approve or deny an application to create an A DU or JADU within 60-days from the date that the City receives a completed application. If the City has not approved or denied the completed application within 60 days, the application is deemed approved unless either:

Page 12 of 14 ends

a. The applicant requests a delay, in which case the 60 -day time period is tolled for the period of the requested delay; or
b. If the permit application to create an ADU or JADU is submitted with a permit application to create a new single -family dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single -family dwelling, but the application to create the ADU or JADU shall be considered without discretionary review or hearing. Final building per mit inspection for the single-family dwelling shall be approved prior to final building permit inspection approval for the ADU or JADU.

(6) If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection (2) above.

Section 12 -56.07. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
(1) The City will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.

(2) As required by State law, the City may not deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 20 20, if denial is based on either of the following grounds:

(a) The ADU or JADU violates building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code, or

(b) The ADU or JADU does not comply with the State ADU or JADU law (Government Code Section 66314 et seq., 66333 et seq.) or this Chapter.

(c) Exceptions:
(i) Notwithstanding subsection 2 above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to comply wit h the standards specified in Section 17920.3 of the Health and Safety Code.
(ii) Subsection 2 above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code Section 17920.3.”

Page 13 of 14 ends

Section 12-56.08. ADUs and JADUs prohibited on parcels created under the Starter Home Revitalization Act.

As provided for by State of California Government Code Section 66499.41(g), the City of Santa Maria chooses not to permit an ADU or a JADU on parcels created through the exercise of the authority contained within Government Code Section 66499.41, known as the Starter Home Revitalization Act of 2021.

SECTION 2. Under California Public Resources Code Section 21080.17, the California Environmental Quality Act (CEQA) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of the Government Code, which sets forth California’s ADU and JADU law. Therefore, the Ordinance is statutorily exempt from CEQA.

SECTION 3. If any part or provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable.

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.

SECTION 5. This Ordinance shall be in full force and effect thirty days after its passage.

Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length o r complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within fifteen days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the O rdinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

Page 14 of 14 ends

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

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

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: David W. Rowlands, City Manager

DATE: August 4, 2026

SUBJECT: Introduction of an Ordinance Amending the Santa Maria Municipal Code Increasing City Council Salaries

Description:

The City Council will consider introducing an Ordinance to increase City Council salaries.

RECOMMENDATION:

1. Waive first reading and introduce an Ordinance amending Section 2-2.02 (Salaries Designated) of Chapter 2 -2 of the Santa Maria Municipal Code increasing City Council salaries by $341.31 per month; and

2. Set said ordinance for adoption at the next regular City Council meeting to take effect December 2026.

BACKGROUND:

City Council salaries have been increased only five times in the last four decades. The Council received a salary of $500 per month between 1986 and 2001. However, for a four-year period beginning in 1993 and running through 1996, the Council voluntarily reduced its salary by four percent during tight budget times. The City Council received $800 per month between 2001 and 2005. The Council salaries increased in 2005 to $920 per month, in 2008 to $1,050 per month, in 2016 to $1,313 per month and on March 15, 2022, are currently set at $1,706.90.

DISCUSSION:

Since the City of Santa Maria is a Charter City and the setting of Councilmembers' salaries are defined as a municipal affair, City Council has the authority to increase their salaries by either Charter authority or the Government Code. The salary of Councilmembers of general law cities is controlled by Government Code Section 36516(a), which permits a City Council to establish by ordi nance a salary level up to a ceiling determined by the city's population. The electorate may approve a higher salary. (Government Code § 36516(b)). A directly elected Mayor may receive additional compensation with the consent of the electorate or by ordina nce of the City Council. 2 (Government Code § 36516.1). Government Code Section 36516(c) allows the compensation of Councilmembers to be increased by five percent for each calendar year from the operative date of the last adjustment of the salary. Chapter 2-2 of the Municipal Code deals with City Council salaries.

A comparison of salary levels for nearby cities is provided below. Santa Maria is the most populous city, yet Councilmember salaries are the third lowest of the four agencies. Santa Barbara is approximately 22 percent smaller in population and their salaries are approximately 209 percent higher than Santa Maria's.

City Mayor Salary Proposed Council Salary Proposed Population

Santa Maria $1,956.90 $2,298 $1,706.90 $2,048 110,608

Lompoc $1,400.00 $1,200.00 44,444

San Luis Obispo $2,923.00 $2,319.00 47,086

Santa Barbara $6,609.00 $5,281.00 86,552

It is the opinion of the City Attorney that "compounding" the salary each year from the last adjustment is not appropriate because it states the increase is five percent "each" year. If it said five percent "per" year, it could be compounded.

It has been four calendar years since the Council's last salary increase. Therefore, an increase of $341.31 per month to a maximum salary of $2,048.28 per month per Councilmember would be lawful ($1,706.90 x 5 percent x 4 years= $341.31; $1,706.90 current salary + $341.31 increase = $2,048.28). Mayor would be entitled to an additional $250 to the $2,048.28 = $2,298.28.

According to Government Code Section 36516.5, any (Council) salary increase may take effect only when at least one member of the Council commences a new term. And while Santa Maria is a Charter City and the State Attorney General has stated that Charter Cities are exempt from the aforementioned Government Code section, because of a recent court case (Green Valley Landowners Assn. v. City of Vallejo [2015] 241 Cal. App.4th 425, 436), the City Attorney recommends that any City Council salary increase not take effect until a Councilmember commences a new term which will be this December 2026.

Therefore, the authorizing ordinance shall make December 2026 the effective date.

Alternative(s)
If the recommended action is not approved, the City Council could not take any action on adjusting its salary or it could approve a different amount.

3 Fiscal Considerations
Should Council decide to increase City Councilmembers and the Mayor's salaries, the annual increased costs to the budget would amount to $19,382.88 per fiscal year.

Impact on the Community
Increasing the Council's salaries to the maximum amount provided by law is still well below the value that the community receives from the benefit of having five dedicated individuals giving significant time in service to the community.

ATTACHMENT(S)
A. Ordinance

Attachment A

Page 1 of 3 ends

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,
AMENDING SECTION 2-2.02 (SALARIES DESIGNATED)
OF CHAPTER 2-2 OF THE SANTA MARIA MUNICIPAL CODE
INCREASING CITY COUNCIL SALARIES BY $341.31 PER MONTH

WHEREAS, the salaries of Councilmembers were last adjusted in 2022 to $1,706.90 per month for each Councilmember and an additional $250 per month for the Mayor; and

WHEREAS, the California Government Code provides for increases to Council salaries; and

WHEREAS, the City Council has not had an increase in compensation for the past four years, and only six times in the past four decades; and

WHEREAS, based on California Government Code provisions, the City Council is eligible for a salary increase to $2,048.28 per month; and

WHEREAS, Government Code Section 36516.5 does not apply to a charter city, however, the City Council voluntarily chooses to comply with its provisions, and therefore, the salary increases provided herein will not become effective until the start of the next term of office of any Councilmember.

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

SECTION 1. Section 2-2.02 of Chapter 2-2 of Title 2 is hereby amended to read as follows:

Section 2-2.02. Salaries designated.

Each member of the Council and the Mayor shall receive, exclusive of any money paid as reimbursement for actual and necessary expenses incurred in the performance of official City duties, as salary , the sum of two thousand forty-eight dollars and twenty-eight cents ($2,048.28) per month. The increased salaries shall become payable on December 31, 2026.

SECTION 2. After its passage and adoption, this Ordinance shall not commence until the start of the next term of office of any Councilmember, which will be December 2026.

Attachment A

Page 2 of 3 ends

SECTION 3. If any part or provision of this Chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the Chapter, including the application of that part of provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable.

SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after its pa ssage. Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the pr oposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

Attachment A

Page 3 of 3 ends

INTRODUCED at a regular meeting of the City Council held on the 4th day of August 2026, and PASSED AND ADOPTED at a regular meeting held on the _____ day of ______ 20__, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

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

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Chenin Dow, Director of Community Development

DATE: August 4, 2026

SUBJECT: Adoption of a Resolution Designating an Elected Official as the Continuum of Care Board Representative

Description:

The City Council will designate an elected official to serve as the City's representative on the Santa Maria/Santa Barbara County Continuum of Care (CoC) Board and authorize the City Manager, or designee, to submit the required CoC Board Cit y Elected Officials Form to the County of Santa Barbara.

Environmental Notice: This activity is not a "Project" as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, no environmental review is required.

RECOMMENDATION:

1. Adopt a Resolution designating an elected official as the City's representative on the Santa Maria/Santa Barbara County Continuum of Care (CoC) Board; and

2. Designate a staff member to serve as an alternate representative in the event that the designated elected official is unavailable for a given meeting; and

3. Authorize the City Manager , or designee , to execute and submit the required documents.

BACKGROUND:

The Santa Maria/Santa Barbara County Continuum of Care (CoC) Board is the regional body responsible for coordinating policies, strategies, and programs to prevent and end homelessness throughout Santa Barbara County. Its responsibilities include overse eing federal and state homelessness funding, the County's Coordinated Entry System (CES), and the annual Point -in-Time (PIT) Count. The Board generally meets via Zoom every other month (usually on a Thursday afternoon) , with occasional special meetings.

Historically, the City of Santa Maria has been represented on the CoC Board by Community Programs Division staff.

On March 12, 2026, the CoC Board amended its Governance Charter to require each participating city to be represented by an elected official. The Charter also allows the elected official to designate a delegate, a City staff member, to participate in CoC Board meetings and activities on their behalf during the official's two-year term.

These changes are intended to align the CoC's governance structure with federal funding requirements and strengthen the region's competitiveness for homelessness funding. 2 As the CoC Lead Agency, the County of Santa Barbara has requested each participating city to submit a CoC Board City Elected Officials Form identify ing the City's elected representative and, if applicable, their designated City staff delegate.

DISCUSSION:

To comply with the updated Governance Charter, the City Council is requested to designate an elected official as the City's CoC Board representative. The designated official may appoint a delegate to participate in Board meetings and activities on their behalf. Submitting the required form will establish the City's official representation. The Council may update its representative or del egate at any time by submitting a revised form.

Alternative(s)
If the City Council does not designate an elected official, the City Manager, or designee, may appoint a City staff member to participate in CoC Board activities , with the understanding that this does not technically satisfy the Governance Charter's requirement for an elected official to serve as the City's representative.

Fiscal Considerations
There is no direct fiscal impact associated with this action.

Impact on the Community
Participation by an elected official supports the City's continued involvement in regional homelessness planning and may enhance the region's competitiveness for federal homelessness funding.

ATTACHMENT(S)
A. CoC Board Representation Resolution
B. Santa Maria/Santa Barbara County Continuum of Care Board Form C. Summary of Governance Charter Amendments

Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

DESIGNATING AN ELECTED OFFICIAL AS THE

CITY'S REPRESENTATIVE ON THE SANTA MARIA/

SANTA BARBARA COUNTY CONTINUUM OF CARE BOARD

WHEREAS, the Santa Maria/Santa Barbara County Continuum of Care (“CoC”) Board is the regional body responsible for coordinating policies, strategies, and programs to prevent and end homelessness throughout Santa Barbara County; and WHEREAS, the CoC Board's responsibilities include overseeing federal and state homelessness funding, the County's Coordinated Entry System, and the annual Point-in- Time Count; and
WHEREAS, the CoC Board generally meets via Zoom every other month, with occasional special meetings, and the City of Santa Maria ha s historically been represented on the CoC Board by City staff; and
WHEREAS, on March 12, 2026, the CoC Board amended its Governance Charter to require that each participating city be represented on the CoC Board by an elected official; and
WHEREAS, the am ended Governance Charter allows the designated elected official to appoint a delegate, who shall be a City staff member, to participate in CoC Board meetings and activities on their behalf during the official's two-year term; and WHEREAS, these changes are intended to align the CoC's governance structure with federal funding requirements and to strengthen the region's competitiveness for homelessness funding; and
WHEREAS, the County of Santa Barbara, as the CoC Lead Agency, has requested that each participa ting city submit a CoC Board City Elected Officials Form identifying the City's elected representative and designated City staff delegate; and WHEREAS, the City Council desires to designate an elected official to serve as the City's representative on the CoC Board and to designate a City staff member to serve as an alternate representative in the event the designated elected official is unavailable for a given meeting.

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

SECTION 1. _____________________ is hereby designated as the City of Santa Maria's elected official representative on the Santa Maria/Santa Barbara County Continuum of Care Board for a two-year term.

Attachment A

Page 2 of 2 ends

SECTION 2. _____________________ is hereby designated as the alternate representative, and shall serve as the City's staff delegate to participate in CoC Board meetings and activities in the event the designated elected official is unavailable.

SECTION 3. The City Manager, or designee, is hereby authorized to execute and submit the CoC Board City Elected Officials Form, and any other documents necessary, on behalf of the City of Santa Maria; and
SECTION 4. The City Council may update the City's designated representative or alternate at any time by submitting a revised CoC Board City Elected Officials Form; 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 with the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 4th day of August 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

Page 1 of 1 ends

CA-603 Santa Maria / Santa Barbara County Continuum of Care (“CoC”) CoC Board City Elected Officials Form
Per CoC Board Action on 3/12/2026, certain CoC Board member seat titles and their definitions as stated in Governance Charter Article IV.F.2.b. CoC Board Selection now call for “An Elected Official of…” each represented city jurisdiction within the region’s geographic boundaries.

Board action also updated the CoC Board Seat Definitions (PDF page 3) to allow the public office holder representing each city to delegate their CoC Board representative.

Completing and filing of this form with the CoC Le ad Agency – County of Santa Barbara, Community Services Department, Housing and Community Development Division, CoC Unit of Homelessness Assistance Programs, per below – affirms CoC Board representation as stipulated and may be changed at any time as indicated.

CoC Board - City Elected Officials Form
An Elected Representative of the City of
Elected City Office Holder, Full Name and Office:

Elected Official Contact Detail, Email and Phone:

Current Term End Date:

Delegate, if applicable - Full Name and Position:

Delegate Contact Detail, Email and Phone:

Elected Office Holders: To complete the process your name as it appears on this form (and your Delegate’s, if applicable) will be submitted as a “Nominee” for your city’s CoC Board Seat, and appear on the next CoC Board Election Ballot (currently scheduled for August, 2026).

T
o file this form, email the completed PDF to [email protected] and include as CC: all applicable parties.

For example, if a Delegate is named and submits the form, the elected office holder must be included in the form filing email.

Q
uestions should be directed to Matthew Rector, CoC Coordinator and Homeless Assistance Programs Specialist, Sr., at [email protected].

Attachment B

1 CoC Board Updates to Governance Charter, March and June 2026 Adopted by CoC Board Action on 3/12/2026
Update certain CoC Board membership seat titles and definitions, Article IV.F.2.b. CoC Board Selection to call for “An Elected Official of…” each represented jurisdictio n; and to update the CoC Board Seat Definitions (PDF page 3) to allow delegates of those elected officials to be seated.

Updates to the CoC Charter and Seat Definitions from Governance Committee discussion and recommendation on 2/12/2026.

From CoC Governance Charter. Edits in red:

CoC Board Selection
[…] b. […] The stakeholders that are currently included on the Board are:
o E
lected Representative of the City of Goleta
o Elected Representative of the City of Lompoc
o Elected Representative of the City of Santa Maria
o Elected Representative of the City of Santa Barbara
From CoC Seat Definitions. Edits in red:

Seat Definition
Elected Representative of the City of Goleta An elected City of Goleta public office holder or their delegate.

Elected Representative of the City of Lompoc An elected City of Lompoc public office holder or their delegate.

Elected Representative of the City of Santa Maria An elected City of Santa Maria public office holder or their delegate.

Elected Representative of the City of Santa Barbara An elected City of Santa Barbara public office holder or their delegate.

Attachment C

CoC Board Updates to Governance Charter, March and June 2026 2 Adopted by CoC Board Action on 6/18/2026

Update certain CoC Board membership seat titles and definitions, Article IV.F.2.b. CoC Board Selection to:

a) Create an additional seat, “Recovery Housing / Sober Living Representative”, to be filled in the upcoming CoC Board Elections in August, 2026;
b) Re-define the Public Safety seat as the “Local Law Enforcement” seat (effective immediately); and
c) Update the published CoC Board Seat Definitions accordingly.

From CoC Governance Charter. Edits in red:

CoC Board Selection
[…] b. […] The stakeholders that are currently included on the Board are:

o Recovery Housing / Sober Living Representative {Added} o Local Law Enforcement {Changed from “Public Safety”}

From CoC Seat Definitions. Edits in red:

Seat Definition
{Proposed New Seat}

Recovery Housing /
Sober Living Representative
Senior staff member from a local homeless or
social services agency or who serves as
leadership of a program that provides for
treatment- or recovery housing; and/or sober
living.

Public Safety Local Law Enforcement

Seat.

{There is no proposed change to operational
representative seat definition]

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Rebecca Campbell, Director of Finance

DATE: August 4, 2026

SUBJECT: Adoption of a Resolution Approving the City General Fund Reserve Policy and Section 115 Trust

Description:

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

RECOMMENDATION:

1. Adopt a Resolution approving an updated City General Fund Reserve Policy and directing the Director of Finance to take steps to establish a Section 115 Trust and to fund those accounts; and

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

BACKGROUND:

Staff presented this item to City Council on April 7, 2026, and the City Council gave direction to staff to have the item returned to them with the budget. The City’s current Reserve policy endeavors to maintain a minimum unassigned fund balance of at least 25 percent of operating appropriations to insulate the General Fund programs and current service levels from large and unanticipated one -time expenditure requ irements, a revenue reduction due to a change in State or Federal legislation, and other unforeseen circumstances.

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

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

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

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

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

DISCUSSION:

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

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

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

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

 Respond strategically and resp onsibly to the challenges of a changing fiscal environment;

 Mitigate operational impacts during difficult economic times;

 Provide flexibility to the City Council for thoughtful reaction to State fiscal or legislative actions that reduce City revenues or increase City costs;

 Maintain adequate cash balances;

 Manage unanticipated costs occurring on a one -time basis, such as natural disasters; and

 Demonstrate fiscal soundness and continued creditworthiness to bond rating agencies and the financial community.

In reviewing GFOA guidance, credit agency recommendations, and best practices for local governmental organizations the following reserves are recommended:

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

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

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

 Appropriation for Contingencies – An amount up to five (5.0) percent of the General Fund operating expenditures and should not be less than one (1.0) percent of the approved General Fund operating expenditures in any given year. An amount appropriated for unanticipated expenditure requirements that are adopted as part of the Budget with a majority vote of the City Council and can be used during the 4 course of a fiscal year transferring the appropriation to elsewhere in the budget.

The Appropriation for Contingencies expires June 30 th of each fiscal year to be reestablished the following year.

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

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

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

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

4. The fourth priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to dedicate excess fund balance for known and quantified unfunded liabilities or one -time unmet needs, including but not limited to the following:

a. Employee pension plan contributions and pension obligation bond debt service
b. Other post-employment benefits (retiree health)
c. Unmet building or maintenance needs
d. Accrued employee leave
e. Litigation settlements

Section 115 Trust
The GFOA supports Section 115 trusts because they help governments responsibly manage long-term liabilities—especially OPEB and pension costs.

In 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions. GASB 68 requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a Net Pension Liability on their balance sheet, which is the difference between the City’s total pension liability (actuarial accrued liability) 5 and actual plan assets. GASB 68 (which replaces the requirements of GASB 27) became effective for fiscal years starting after June 15, 2014. The City’s Net Pension Liability is $184.3 million as of June 30, 202 4. The City set has set aside $6.2 million in reserve, established in FY 2017-18, for Unfunded Pension liability costs. Currently the reserve sits at $15.4 million.

In 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. GASB 75 requires the City to report costs and obligations for post -employment healthcare and other post -employment benefits (called “OPEBs”) much like the current accounting requirement to report pension obligations. Like GASB 68, the City must also report its net OPEB liability (difference between the total OPEB liability and assets accumulated in an irrevocab le trust) on its Financial Statements. GASB 75 (which replaces the requirements of GASB 45) will become effective for fiscal years beginning after June 15, 2017. The City’s Net OPEB liability is $18.6 million as of June 30, 202 4. The City set has set aside a $6.2 million in reserve, established in FY 2010-11, for OPEB liability costs, and the reserve sits at $6.2 million.

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

Expected benefits of a Section 115 Trust Program to the City include:

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

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

Alternative(s)
None presented at this time.

6 Fiscal Considerations
In order to fund the General Reserve, LEAF, Emergency Catastrophic Reserve, and Contingencies, and the Section 115 trust for pension liability, an estimated $15,188,353 will be transferred out from the existing Pension Reserve and transferred into the other areas as shown in Table 1 below.

Table 1: Transfers Out from Pension Reserve

Table 2 represents the existing policy target and projected status of the City’s General Fund reserves at June 30, 2026, based on year-end FY 2024 audit results and FY 2026 departmental projection estimates . Recommended changes are reflected in the New Policy column s with this policy update. Please note t hat the “General Reserve” was formally known as the Economic Stabilization Reserve and will be retitled.

Table 2: General Fund Reserve Existing and New Policy Comparison Estimates Existing Policy
Target
Projected June 30,
2026 Balance
New
Policy
Target
New Policy
Recommendation
Unassigned Fund
Balance $26.9 M $0 N/A N/A
General Reserve
(Core Operating
Reserve)
$26.9 M $19,800,000 $22.7 M

$22,700,000
Local Economic
Augmentation Fund
(Emergency Reserve)
$6.8 M $937,650 $20.4 M

$9,953,960
Emergency/Catastrophic
Reserve (Disaster
Reserve)
N/A - $5.4 M

$1,000,000
Contingencies* N/A - $5.4 M $1,000,000 OPEB N/A $6,248,027 N/A -
PENSION N/A $15,416,310 N/A - 115 Trust for OPEB N/A N/A $6,248,027
115 Trust for Pension N/A N/A $1,500,000
Total Funds $64.8 M $42,401,987 $53.9 M $42,401,987

15,416,310$ Pension R eserve
(2,900,000)$ GF R eserve (Operating R eserve) (9,016,310)$ LEAF
(1,000,000)$ Disaster R eserve
(1,000,000)$ Conting encies
(1,500,000)$ 115 T rust for Pension
-$ B alance
7 Staff is recommending that funding be moved based on GFOA best practices as outlined in the new policy with the following actions:

 Fully fund the General Reserve (Core Operating Reserve) per policy at $22.7 million. This will require moving $2.9 million from the existing Pension Reserve.  Increase the LEAF Reserve to $10.0 million. This will require moving $9.0 million from the existing Pension Reserve.
 Establish the Emergency/Catastrophic Reserve at $1.0 million. This will require moving $1.0 million from the existing Pension Reserve.
 Establish a General Fund Contingency account at $1.0 million. This will require moving $1.0 million from the existing Pension Reserve.
 Move $6,248,027 in OPEB Reserve from the investment pool to a OPEB Section 115 irrevocable trust account. Staff will return to City Council for next steps on that establishment.
 Move $1,500,000 in Pension Reserve from the investment pool to a Pension Section 115 irrevocable trust account. Staff will return to City Council for next steps on that establishment.

The new policy recommends that a total of $ 53.9 million be set aside in reserves and contingencies. As recommended, there is an estimated total of $42,401,987 in funding set aside in reserves, contingency, and in the Section 115 trust.

Impact on the Community
Maintaining a prudent financial reserve ha s several direct and indirect impacts on a community. From a public finance perspective, reserves enhance financial stability, service continuity, and long-term affordability of government services. For the community, prudent reserves result in: stable pub lic services, lower infrastructure financing costs, better emergency response capability, reduced likelihood of sudden tax increases or service cuts, and greater financial resilience during economic downturns. A prudent reserve functions as the community’s financial safety net, protecting both services and taxpayers during periods of uncertainty.

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

ATTACHMENT(S)
A. Resolution
B. General Fund Reserve Policy

Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

APPROVING AN UPDATED CITY GENERAL FUND RESERVE POLICY

AND DIRECTING THE DIRECTOR OF FINANCE TO TAKE STEPS TO
ESTABLISH A SECTION 115 TRUST AND TO FUND THOSE ACCOUNTS

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

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

1. A new General Fund reserve policy, outlined as Attachment B is approved, and authorizes:
a. The “Economic Stabilization” Reserve shall be retitled to the “General Reserve” with a savings target of 16.7 percent of the prior fiscal year’s budgeted General Fund and Measure U Fund operating expenditures; b. Maintaining the Local Economic Augmentation Fund reserve with the target of 10 percent to 15 percent of the prior fiscal year’s budgeted General Fund and Measure U Fund operating expenditures; c. Establishing an Emergency/ Catastrophic Reserve with the target of 5 percent to 10 percent of the prior fiscal year’s budgeted General Fund operating expenditures;
d. Establishing a General Fund Appropriation for C ontingencies with the target of 5 percent of the fiscal year’s budgeted General Fund operating expenditures. Appropriations for Contingencies should not be less than 1 percent of the approved General Fund operating expenditures in any given year;
e. The Director of Finance is authorized to adjust reserves in the City financial system in accordance with the policy and year -end financial actual results as outlined; and
Attachment A

Page 2 of 2 ends

2. The Director of Finance is authorized and directed to take the steps necessary to establish a Section 115 Irrevocable Trust with the intent to prefund the City’s long-term debt for other post-employment benefits and unfunded pension liability costs.

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 4th day of August 2026.

ATTEST:

Chief Deputy City Clerk

Mayor

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

ITY OF SANTA MARIA

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

POLICY SCOPE
This Po licy sets fo rth the parameters and funding met hods t he City may utilize to establish and maintain an adequate G eneral Fund R eserve and Appropriation fo r Contingencies.

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

The
maintenance of a G eneral Fund R eserve is a sound business practice to prot ect the fiscal solvency of the City. A prudent General Fund Reserve level is a critical measure of a government’s ability to m anage risk. Risk com es in m any form s, often unfor eseen – a reserve f und is a k ey t ool in meeting t he fi nancial challeng es of such unfor eseen occurrences.

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

The GFOA recommends, at a minimum , that general-purposes governments, regardless of size, maintain unr estricted fund balance in t heir General Fund of no less than two mont hs (or 16.7%) o f general fund operating expenditures. A s table, reasonable level of reserved and unreserved fund balance denotes financial stability and strong fiscal management, both important factors considered by rating a gencies i n evaluating t he cr edit worthiness of t he City. The General Fund Reserve Policy and General Fund A ppropriation for Contingencies establishes guidelines to ensure the City maintains an unrestricted fund ba lance in line with GFOA recommendations.

ATTACHMENT B

CITY OF SANTA MARIA

GENERAL FUND RESERVES POLICY

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

A. Respond strategically and responsibly to the challenges of a changing fiscal environment;

B. Mitigate operational impacts during difficult economic times;

C. Provide flexibility to the City Council for thoughtful reaction to State fiscal or legislative actions that reduce City revenues or increase City costs;

D. Maintain adequate cash balances;

E. Manage unanticipated costs occurring on a one-time basis, such as natural disasters; and

F. Demonstrate fiscal soundness and continued creditworthiness to bond rating agencies and the financial community.

DEFINITIONS

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

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

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

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

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

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

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

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

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

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

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

POLICY

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

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

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

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

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

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

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

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

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

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

3. The fourth priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to dedicate excess fund balance for known and quantified unfunded liabilities or one-time unmet needs, including but not limited to the following:

a. Employee pension plan contributions and pension obligation bond debt service

b. Other post-employment benefits (retiree health)

c. Unmet building or maintenance needs
d. Accrued employee leave
e. Litigation settlements

F. Unreserved Fund Balance – The City will maintain sufficient fund balances in the General Fund to provide adequate working capital and to accommodate required adjustments to other reserve accounts, including advances to other funds.

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

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

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

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

Until the City reaches its general reserve goal, the budget process permits appropriations for one-time projects/expenses and capital projects. In the event that the City realizes res erves above the minimum levels defined, the first use of such funds should be a designation for capital projects and other one-t ime uses.

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

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

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

L. N
o expenditures shall be made directly from the General Fund Reserve. Funds for expenditures shall be transferred to a cost center.

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

Santa Maria City CouncilAugust 4, 2026

Santa Maria City Council
August 4, 2026