Solvang City Council
January 10, 2022

IMPORTANT NOTICE REGARDING PUBLIC PARTICIPATION
Based on guidance from the California Department of Public Health, the Santa Barbara County Department of Health and the California Governor' s proclamation of a state of emergency on March 4, 2020, to protect the health and well-being of all Californians and to establish consistency across the state in order to slow the spread ofCOVID- 19, the City Council meetings may be held remotely only.

Pursuant to Government Code Section 54953( e)(2), we have established alternative methods of participation in the City of Solvang City Council meetings:

For January 10, 2022 City Council Meeting, the City will provide both remote and in-person participation options. Due to current increase in COVID- 19 cases in our area, the City strongly encourages REMOTE participation.

In order to adhere to COVID- 19 social distancing guidelines and the health orders, a limited number of public will be allowed to enter at one time to provide public comment. Virtual participation will also stillbe available via Zoom or phone.

You may observe the live stream of the City Council meetings on www. CityofSolvang. com/YouTube.

Distribution to the City Council – You may, but are not required to submit your comment in advance.

Should you wish to do so, please do so via email prior to 5 p.m. on the Friday prior to the Council meeting.

Please submit your comment to the City Clerk at: Council@CityofSolvang. com. Your comment will be placed into the record and distributed appropriately.

The following methods of participation are available to the public:

If you wish to make a general public comment or to comment on a specific agenda item, the following methods are available:

In-person speakers will be invited to make public comments first. Zoom speakers and those wishing to make a public comment by phone, will be invited to do so once all in-person public comment is received.

1. In-person. Due to COVID- 19 social distancing guidelines, limited number of in-person participants can be accommodated in the Chambers at a time. Masks are required.

2. By phone- If you would like to make a comment by phone, please call into conference line 888 788 0099 (Meeting ID: 306 652 9195). The phone line will be open starting at 6 p.m. if you would like to notify the City ahead of time that you would like to speak on an item or during open public comment. We appreciate but do not require your advance notice to CityHalll@CityofSolvang. com ahead of time by noon on the day of the meeting if you plan oncalling- in to speak.

3. Join Zoom Meeting – you may also participate by joining Zoom meeting at https:// zoom. us/j/3066529195 ( Meeting ID: 306 652 9195). If you wish to speak, please usethe “raised hand” symbol.
1 Last Resolution No. 21-1153
Last Ordinance No. 21-0353
AGENDA

REGULAR MEETING OF THE SOLVANG CITY COUNCIL
COUNCIL CHAMBER, 1644 OAK STREET, SOLVANG, CA
JANUARY 10, 2022 - 6:30 PM
Charlie Uhrig, Mayor
Claudia Orona, Mayor pro tem
Robert Clarke, Councilmember
Mark Infanti, Councilmember
Jim Thomas, Councilmember

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

CEREMONIAL ITEMS/COMMENDATIONS - NONE

PRESENTATIONS

PROCLAMATIONS
a. Human Trafficking Awareness Month
b. January 23-29, 2022 Recognized as School Choice Week

1. PUBLIC COMMUNICATIONS – NON AGENDA AND CONSENT AGENDA ITEMS This section is intended to provide members of the public with the opportunity to address the Council on items not on the Agenda and the Consent Agenda. This section is limited to 30 minutes. Each speaker will be afforded three minutes, and may speak only once. State law does not allow the Council to discuss or take action on issues not on the agenda, except to briefly respond or to ask Staff to follow up on such items.

Please be advised that, pursuant to State Law, any member of the public may address the Council concerning any item on the Agenda. Please be aware that items on the Consent Calendar are considered to be routine and are normally enacted by one vote of the Council.

If you wish to speak regarding an item on the Consent Agenda, please do so during PublicCommunications.

Regular City Council meetings are broadcast live on Channel 23 in the Santa Ynez Valley, and stream live on the City’ s website at www.cityofsolvang.com/City Council We hope that you can join us ( virtual participation encouraged) for the next City Council meeting. Instructions for participating in the meeting are located here: www.cityofsolvang.com/AgendaCenter. All Regular Meetings of the Solvang City Council may be viewed via live stream, on the City’ s YouTube channel:
www. youtube. com/ channel/ UC15ThpbeQv6NkgYrup61SfA. Once again, please be safe, stay healthy, and

STAY HOME
2 2. CITY MANAGER REPORT
Informational Report

3. COUNCIL COMMENTS, REQUESTS AND ADVANCE CALENDAR
Comments and requests from City Council Members. No action will be taken at this meeting.

4. CONSENT AGENDA
a. Approval of Agenda as Presented.
b. Approve the Minutes of the City Council meeting of December 13, 2021 ................................................. .. 7 c. Approve Warrant Register December 2021 .......................................................................................... ...... 13 d. Adopt Resolution No. 22-1155, a Resolution of the City Council of the City of Solvang authorizing Remote Teleconference Meetings of the City Council ............................................................................................... 28 e. Accept as Complete the WWTP Aeration System Replacement Project PW 142 with Cushman Contracting Corporation, and authorize the City Manager to execute, and the City Clerk to Record the Notice of Completion as of December 13, 2021 ................................................................................... 33 f. Review and approve minor amendments and clarifications to the Purchasing Policy ..................................48 g. Adopt proposed City Council meeting schedule for calendar year 2022 ..................................................... 101 h. Receive Visit SYV 3rd quarter 2021 report ................................................................................................. 103 PUBLIC HEARINGS – None

REGULAR BUSINESS AGENDA

5. APPROVE THE COMPREHENSIVE FINANCIAL REPORT

1. Review City financial highlights for the year ending June 30, 2021; and

2. Accept into the record the 2020- 21 Annual Comprehensive Financial Report, as presented by Ahmed Badawi, CPA ..........................................................................................................................................115

6. COPENHAGEN REOPENING STRATEGY & TEMPORARY OUTDOOR DINING

ENCROACHMENT PERMITS
That the City consider options for the reopening of Copenhagen Drive and direct staff to proceed with the preferred option .......................................................................................................................................... 271

7. CITY COUNCIL REORGANIZATION
Designation of Mayor pro tem and Council appointments to outside committees and agencies ............. 276

8. APPROVE THE GRANT FUNDING POLICY UPDATE
Review Grant Funding policy for non-profit organizations for Fiscal Year 2022- 24 Financial Plan development ................................................................................................................................................ 288

9. REAPPOINT FORMER MEMBER CHERYL SHALLANBERGER TO THE TOURISM ADVISORY COMMITTEE FOR THE TERM TO 12-31-2022
Reappoint former member Cheryl Shallanberger to the Tourism Advisory Committee for the term to 12- 31-2022 ...................................................................................................................................................... 290

10. ADOPT RESOLUTION NO 22-1154 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG, CALIFORNIA ADOPTING AN ADDENDUM TO THE 2011 WATER SYSTEM

MASTER PLAN UPDATE FINAL ENVIRONMENTAL IMPACT REPORT PURSUANT TO THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND APPROVING THE REVISED RIVER WELLS PROJECT.

That the City Council adopt Resolution No. 22-1154 a Resolution of the City Council of the City of Solvang, California adopting an Addendum to the 2011 Water Systems Master Plan Update Final Environmental Impact Report pursuant to the California Environmental Quality Act and Approving the Revised River Wells Project ............................................................................................................................................. 292 3 11. AB1234 REPORT OUT AND COUNCIL CLOSING COMMENTS

12. ADJOURNMENT

AFFIDAVIT OF POSTING
I, Annamarie Porter, City Clerk for the City of Solvang, California, DO HEREBY CERTIFY, under penalty of perjury under the laws of the State of California, that the foregoing notice was posted at the City of Solvang City Hall bulletin board and on the City of Solvang website at, on this 5th day of January 2022.

Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1644 Oak Street, Solvang, during regular business hours and on the City’ s website www.cityofsolvang.com, in addition, any writings relating to an open session agenda item provided to a majority of the Council after the posting of the agenda, will be identified and available separately at City Hall and may be posted to the website.

In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the office of Administrative Services at ( 805) 688-5575 or the California RelayService.

Notification 48 hours prior to the meeting would enable the City to make reasonable arrangements to ensure accessibility to this meeting.
4 SB COUNTY HUMAN TRAFFICKING TASK FORCE

VIGIL FOR

FREEDOM
In solidarity with local survivors of human trafficking JANUARY 20, 2022
5: 30PM- 6: 30PM

VIRTUAL EVENT
Join SB ACT, the DA' s Office Human Trafficking Task Force, the Interfaith Collaborative Against Human Trafficking, STESA, local faith communities and more as we stand for freedom in our community. Join us for speakers regarding the local human trafficking landscape and a candlelight vigil.

Please RSVP below to receive the Zoom link.
tinyurl. com/ Algilf orfreedom2022
Santa Barbara County
HUMAN

TRAFFICKING

TASK FORCE
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City Council Meeting
January 10, 2022

DEPARTMENT BUDGET UPDATES
Julefest 2021
Season
Kicked-off with Tree Lightning
Ceremony and Parade
Concluded on Friday 1/7 with
Tree Burn
Santa Barbara County COVID cases
4 Alternative Choices Community
Workshop #3 – January 13, 2022 6:00-
8:00 pm.

VIRTUAL PARTICIPATION ONLY DUE
TO COVID-19
Alternative Choices Report posted on
www.PlanSolvang. com
Upcoming Tentatively Scheduled
Workshops (In-Person and Virtual)
Fiscal Year 2022-24 Financial Plan Development •
January 27, Thursday evening – Community Workshop
February 26, Saturday morning – Council Goal Setting Session Utility Rate Study
February 12, Saturday morning – Community Workshop
January/ February 2022: Council Workshop to review study recommendations March 2022: Council review final study recommendations and set Prop. 218 hearing April/ May 2022: Public outreach meeting
June 2022:Prop 218 hearing and rate adoption
July 1, 2022: rate implementation
Solvang Districting for Elections
www.DistrictSolvang. org – Draft Maps will be posted online on February 7, 2022 Commissions & Committees
Planning Commission
Monday, February 7, 2021 – 6 p.m.

Will review Title 11 proposed changes again•
Old Lumberyard updated project scope Preliminary Review Tourism Advisory Committee •
Thursday, February 3, 2021 – 3:30 p.m.

Design Review Committee
Thursday, January 20, 2021 – 5 p.m.

Second Review of Branding recommendations developed by IDK (TRC signage update and Visitor Center remodel)
7 Advance Calendar
January 24, 2022
Sewer Master Plan Update
Stormwater Management Annual Report
Fiscal Year 2021-22 Mid-Year Report
Fiscal Forecasts & Financial Policies for FY 2022-24 Financial Plan
Response to Grand Jury Report – CalPERS ( pension)
Unfunded Liability
Meeting Date Agenda Item Agenda Action
13 Jan
Alternative Choices Community Workshop General
Plan Update location pending due to COVID) Community Workshop 24 Jan
Sewer Master Plan Update Business Approve
Consultant Agreement Sewer Line Replacement Project Consent Approve Fiscal Forecasts Financial Policies for FY 2022 24
Financial Plan Development Business Approve
Stormwater Management Annual Report Consent Approve
Response to Grand Jury Report CalPERS Business Approve
Fiscal Year 2021 22 Mid Year Quarter2) Financial
Report and Budget Adjustments Business Approve
27 Jan
Fiscal Year 2022 24 Financial Plan Development
Community Workshop Community Workshop
12 Feb
Utility Rate Study Water Wastewater) Community
Workshop Community Workshop
14 Feb
General Plan Update Alternative Choices Business Approve Branding Strategy and Project Scope Approval Business Approve Second Street Drainage Improvements Business Approve
26 Feb
Fiscal Year 2022 24 Financial Plan Goal Setting Session Council Workshop Set Goals 28 Feb
Solvang Park Shade Improvement Alternatives Business Approve River Well Phase 3 Conceptual Review Business Approve
Measure A 5 Year Local Program of Projects Business Approve 7 Mar
Special Meeting Solvang Elections District Map Public
Hearing 1 to review draft maps Business Public Hearing
14 Mar
Parking Improvements Business Policy
SB1 RMRA project List Business Approve
Investment Policy Annual Review Consent Approve
Solvang Skytt Mesa LLMD Annual Assessment Pubic Hearing Public Hearing 28 Mar
Solvang Elections District Map Public Hearing 2 to
review draft maps Business Public Hearing
11 Apr Solvang Elections District Map Adoption Business Adopt HCA Park Improvements Project Report Business Receive

ADVANCE CALENDAR
5 Meeting Date Agenda Item Agenda Action
N/ A
Agenda Item Agenda Action
November Stormwater Management Program Annual Report Consent Receive December Appointment of Mayor Pro Tem Business Approve
December
Council selection of representatives to Committees and
Agencies Business Approve
December every
two years) Appointment to Boards, Commissions, Committees Business Approve January Annual Comprehensive Financial Report Business Approve January Grant Funding Policy Review Business Approve
February Measure A 5 Year Local Program of Projects Public Hearing Approve February Fiscal Outlook and Financial Policies Business Approve March SB1 RMRA project List Public Hearing Approve
March Investment Policy Annual Review Business Approve
March Solvang Skytt Mesa LLMD Annual Assessment Public Hearing Approve March FTA 5311 Grant Agreement Consent Approve
March TDA Grant Funding Consent Approve
April Council Budget Goal Setting Business Approve
May Preliminary Budget
Oct/ Jan/ April/ July Quarterly Financial Reports Business Approve June
Two Year Financial Plan Development or Budget
adoption Business Adopt
June Capital Improvement Program Business Adopt
June/ July Amend Appropriation Limit Business Adopt
Council Requested Agenda Items
Annual Reports
6 December 13, 2021
Monday
6:30 p.m.

CALL TO ORDER
Mayor Uhrig called the meeting to order at 6:30 p.m. in the City Hall Council Chamber, 1644 Oak Street, Solvang, California.

ROLL CALL

Present: Mayor Charlie Uhrig; Mayor pro tem Claudia Orona; Councilmembers Mark Infanti, Jim Thomas, Robert Clarke
Staff: City Manager Xenia Bradford, City Attorney David Fleishman, City Clerk Annamarie Porter.

PLEDGE OF ALLEGIANCE
Led by Councilmember Infanti
CEREMONIAL ITEMS/COMMENDATIONS - None
PRESENTATIONS - None

1. PUBLIC COMMUNICATIONS – NON-AGENDA AND CONSENT AGENDA ITEMS WRITTEN OR VERBAL
City Clerk Porter invited members of the public to comment on items not in the agenda. There was no response and public comments were closed.

2. CITY MANAGER REPORT
City Manager Bradford narrated a PowerPoint presentation addressing upcoming General Plan Update, Financial Plan Development and Utility Rate Study workshops, Solvang Districting for Elections, upcoming Commission and Committee meetings, details of the Advance Calendar; introduced the new Public Works Director and discussed other new hires.

3. COUNCIL COMMENTS, REQUESTS AND ADVANCE CALENDAR
Councilmember Thomas addressed a meeting of the Redistricting Committee and provided an update of district final determinations.

Councilmember Infanti reported District 3 closely matches the Groundwater Sustainability Eastern Management Area; discussed the Christmas Tree Lighting event; commended Mayor pro tem Orona for her presentation; spoke about the Christmas Parade and addressed the Groundwater Sustainability Plan.

Mayor pro tem Orona discussed Christmas events; addressed the Candlelight Tours and reported on a meeting with Supervisor Joan Hartmann regarding odor control of cannabis farms.

Councilmember Clarke reported on a recent meeting of the Library Advisory Committee; noted his opposition to

MINUTES OF THE REGULAR MEETING OF THE

SOLVANG CITY COUNCIL
Item 4.b
7 the Bethania Lutheran Church matter and felt it is not the City's job to be giving residents food.

Mayor Uhrig reported attending a recent meeting of the SBCAG North County Subregional and was voted Chair of the committee; commented on a Coastal Bike Trail project; discussed the final vote on the supervisorial district maps; noted the Chumash Tribe has gone into a partnership regarding Route 246; addressed the Santa Ynez Valley Transit and spoke about upcoming events. He noted upcoming increases in the minimum wage; provided updated statistics on Food Bank distributions and thanked Council colleagues for their work and being respectful of each other as well as City staff.

4. CONSENT AGENDA
a. Approval of Agenda as Presented.
b. Approve the corrected Minutes of the City Council meeting of November 8, 2021, and Minutes of the meeting of November 22, 2021.
c. Receive Santa Barbara County Sheriff’ s Monthly Report for October 2021. d. Adopt Resolution No. 21-1153, a Resolution of the City Council of the City of Solvang authorizing Remote Teleconference Meetings of the City Council.
e. Approve the City Water System Emergency Plan.
f. Award an agreement with SaberDome Corporation dba Lanspeed for Information Technology Managed Services for the annual amount of $57,120, subject to a 3% annual increase, for the term January 1, 2022 – December 31, 2023, with option to extend for two additional one- year terms and authorize the City Manager to execute on behalf of the City
City Attorney David Fleishman reported a matter that came to staff's attention after publication of the agenda; a response is required by tomorrow and asked to add it as an emergency item to this agenda as Item No. 12.

Mayor Uhrig referenced Item No. E and asked that the distribution list be updated and asked that the Sheriff' s Department be given a copy of the Water System Emergency Plan.

Motion by Councilmember Infanti, to add Item No. 12 to the agenda as an emergency item as there is a need for immediate action on the matter and the item came to staff' s attention after publication of the agenda, seconded by Councilmember Thomas, and carried with a roll call vote of 5-0.

Motion by Mayor pro tem Orona to approve the Consent Agenda, as presented, seconded by Councilmember Clarke, and carried with a roll call vote of 5-0.

PUBLIC HEARINGS - None

REGULAR BUSINESS AGENDA

5. APPROVE SENDING A LETTER IN SUPPORT OF DESIGNATING THE CHUMASH

HERITAGE NATIONAL MARINE SANCTUARY
Consider approving sending a letter in support of NOAA’ s intent to designate the Chumash Heritage National Marine Sanctuary
City Manager Bradford introduced the item and deferred to a representative of the Santa Ynez Chumash Tribe.

Sam Cohen, Santa Ynez Chumash Tribe, requested the City's support for the Chumash Heritage National Marine Sanctuary.

Mayor Uhrig reported receiving a request from another organization to provide and opinion and in full transparency, brought the matter forward to City Council' s consideration and spoke about the importance of water and water conservation.
8 Discussion followed regarding the boundaries of the sanctuary, preventing future drilling of oil wells and impacts to existing oil wells.

There were no public comments for this item.

Motion by Councilmember Infanti to approve sending a letter in support of NOAA’ s intent to designate the Chumash Heritage National Marine Sanctuary, seconded by Mayor Uhrig, and carried with a roll call vote of 5-0.

6. COVID MODIFIED CITY OPERATIONS UPDATE
a. Receive a report on COVID- 19 conditions and provide staff with policy direction to maintain or eliminate outdoor encroachment permits program, which was established to allow restaurants and wine tasting rooms to operate outdoors due to COVID- 19; and
b. Discuss Copenhagen closure and provide staff with further direction City Manager Bradford presented details of the staff report.

Councilmember Infanti reported that at the Christmas Tree Lighting event, there were children behind the presentation area; noted it was a dangerous situation and spoke about needing to stop allowing businesses to set up street displays at the same time that Copenhagen is reopened.

Discussion followed regarding support from businesses to keep Copenhagen closed.

City Manager Bradford reported it will take work to disassembly everything and if COVID- 19 regulations were to be reactivated it will involve planning and noted Santa Barbara and San Luis Obispo Counties are still allowing businesses to have modified outdoor operations.

Councilmember Infanti reported receiving comments that the town looks like a swap meet.

Councilmember Thomas restated he would be in favor of reopening Copenhagen in February and reevaluating the matter after one or two months.

Mayor pro tem Orona expressed concerns that the pandemic is not over; suggested the possibility of implementing a hybrid system where business can keep their encroaching permits develop a floorplan where they can accommodate customers outdoors while opening Copenhagen at the same time.

Councilmember Infanti suggested developing a policy where businesses wanting to keep outdoor operations to pay for parking, in lieu.

Discussion followed regarding considering use of parklets and having staff work on allowing restaurants to provide outdoors temporary dining.

Public Works Director Olds reported it would take approximately 3 ½ weeks to reopen Copenhagen; suggested notifying businesses as soon as possible that the structures will be removed and stated the plan is to keep it closed for street sweeping and restriping parking spaces prior to reopening it.

Discussion followed regarding reopening Copenhagen as of February 1, 2022, keeping the bollards and the need for direction whether to continue to allow the temporary outdoor dining program or to revoke those permits.

Mayor Uhrig invited public comments on this item.

Tracy Beard ( via telephone), Chamber of Commerce, spoke about the possibility of designating Copenhagen as a one-way street and reevaluating the item later.

There were no other public comments on this item.
9 Discussion followed working individually with each business to accommodate outdoor seating as much as possible while still reopening Copenhagen and the need for Public Works to study whether Copenhagen can accommodate outdoor dining and a one- way street.

City Manager Bradford summarized direction for staff to return to the first Council meeting in January with a report as to how to leave encroachment permits, safely, in place while notifying businesses that Copenhagen will be fully reopen by February 1, 2022.

Discussion followed regarding restriping exactly the same way prior to the closure of Copenhagen.

There was City Council consensus to direct staff to return to the first Council meeting in January with a report as to how to leave encroachment permits, safely, in place while notifying businesses that Copenhagen will be fully reopen by February 1, 2022

7. RECEIVE MARKETING UPDATE ON WORK PRODUCT UNDER THE CURRENT MARKETING CONTRACT (JULY 1 – DECEMBER 31, 2021)
Receive a report from IDK Events LLC ( Cogs & Marvel) on work performed under the current marketing contract from July 1 through December 31, 2021. Council may provide staff with policy direction City Manager Bradford introduced the item and deferred to IDK representative Scott Shuemake for a report.

Scott Shuemake narrated a PowerPoint presentation with a summary of their strategy and activities under the current contract.

Discussion followed regarding metrics of campaign performance.

Councilmember Clarke noted tax revenue is up from pre-COVID- 19 levels and attributed it, in part, to IDK's work.

Discussion followed regarding the success of the message of making Solvang a safe destination.

Council took no action on this item.

8. RECEIVE TOURISM ADVISORY COMMITTEE RECOMMENDATIONS FOR CONTRACT SCOPE WITH IDK EVENTS LLC (COGS & MARVEL) FOR AN EXTENSION THROUGH JUNE 30, 2022, AND AUTHORIZE CITY MANAGER TO EXECUTE ON BEHALF OF THE CITY a. Receive Tourism Advisory Committee recommendations for marketing contract scope for the contract extension through June 30, 2022, with IDK Events LLC (Cogs & Marvel); and b. Authorize the City Manager to execute on behalf of the City.

City Manager Bradford presented details of the staff report.

Councilmember Clarke questioned spending $ 25,000 on billboards.

Mayor pro tem Orona noted the casino uses them as does the City of Buellton and felt they have some value.

Councilmember Infanti spoke about existing banners.

City Manager Bradford reported the TAC recommended no going forward with billboards.

Mayor pro tem Orona expressed concerns regarding the proposed extension; hoped that an RFP would have been developed, by now; noted that by the time the contract expires, important City events would be forthcoming such as the Fourth of July and Danish Days and stated she would like the new marketing provider/ contractor to be hired sooner than June 30, 2022.
10 Mayor Uhrig agreed with Mayor pro tem Orona and suggested the extension be for three months instead of six months.

Councilmember Infanti suggested approving the six-month extension, but issuing the RFP in February, go through the selection process so the awardee can start planning.

Discussion followed regarding extending the contract until July 31, 2022, to allow IDK to work on the Fourth of July event.

Mayor Uhrig invited public comments. There was no response and Mayor Uhrig closed public comments.

Motion by Councilmember Clarke to receive Tourism Advisory Committee recommendations for marketing contract scope for the contract extension through July 31, 2022, prorated, with IDK Events LLC ( Cogs & Marvel); and authorize the City Manager to execute on behalf of the City, seconded by Councilmember Infanti, and carried with a roll call vote of 3-2, with Mayor pro tem Orona and Mayor Uhrig, opposed.

9. APPOINT TOURISM ADVISORY COMMITTEE MEMBER DUE TO RESIGNATION Due to resignation of a Tourism Advisory Committee member originally appointed by Mayor pro tem Orona, consider appointing a new candidate
City Manager Bradford presented the staff report.

Discussion followed regarding letting Cheryl Shallanberger know of the TAC' s new meeting schedule to determine whether she would like to return as a member of the TAC.

10. DETERMINE THE MEMBERSHIP OF PLANNING COMMISSIONER JUSTIN RODRIGUEZ Per Councilmember Infanti’ s request, determine the status of membership of Planning Commissioner Justin Rodriguez
City Manager Bradford presented the report.

Councilmember Infanti reported Planning Commissioner Justin Rodriguez has missed three of the four Planning Commission meetings; expressed concern with not having a full Commission and suggested asking him if he is interested in continuing or having Councilmember Clarke make another appointment.

Councilmember Clarke had hoped the Planning Commission would have reached out to Mr. Rodriguez; reported he was sick and had surgery and offered to speak with Mr. Rodriguez to determine his interest in continuing as a Planning Commissioner.

11. APPROVE UPDATED EMPLOYEE HANDBOOK
Receive and approve an updated Employee Handbook
City Manager Bradford presented the report.

In reply to Councilmember Infanti's question regarding changing the handbook to reflect Councilmembers will be elected by district, City Attorney Fleishman reported the handbook will need to be modified once voting by district is implemented.

Mayor pro tem Orona noted the handbook indicates that Council elects the Mayor and asked that it be corrected to reflect the current procedure.

There were no public comments on this item.
11 Motion by Councilmember Clarke to approve the updated Employee Handbook, seconded by Councilmember Thomas, and carried with a roll call vote of 5-0.

12. URGENCY ITEM - APPROVE AMENDMENT 4 TO THE AGREEMENT WITH MERIDIAN

CONSULTANTS LLC FOR EIR ADDENDUM FOR THE PETITION FOR CHANGE WITH THE

STATE OF CALIFORNIA WATER RESOURCES CONTROL BOARD
City Attorney Fleishman presented details of the report.

There were no public comments on this item.

Motion by Councilmember Infanti, to approve Amendment 4 to the agreement with Meridian Consultants LLC, for EIR Addendum for the petition for change with the State of California Water Resources Control Board, seconded by Mayor pro tem Orona, and carried with a roll call vote of 5-0.

13. AB1234 REPORT OUT AND COUNCIL CLOSING COMMENTS - None

14. ADJOURNMENT- Mayor Uhrig adjourned the meeting at 9:00 p.m.

Respectfully submitted:

Annamarie Porter, City Clerk
12 1/ 4/ 2022 4: 17: 34 PM Page 1 of 15
Expense Approval Report
City of Solvang By Segment (Select Below)
Payment Dates 12/1/2021 - 12/31/2021
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 2021Pacific Gas & Electric Company 20217582 11/ 17/ Siren11/ 17/ 931351329740 100-16002 41. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 280408007638 Booster Pump Ran…100-16002 73. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Hall11/ 17/ 040408007413 City 100-16002 608. 2021Southern California Gas Compa… 20219500 11/ 19/ 011/ 19/ 32Acct# 098 214 9500 100-16002 84. 2021INV0009497Cristina Uribe SFP10/ 12/ 00Refund - Rental Fee Deposit 100-16002 125. 2021INV0009603Emma Limon Deposit11/ 06/ 00Refund- Rental 100-16002 125. 2021INV0009623Cody Lee Deposit11/ 15/ 00Refund- Rental 100-16002 125. 2021INV0009624Diane Byington Deposit11/ 15/ 00Refund- Rental 100-16002 125. 2021INV0009625Erin Pollaro Deposit11/ 15/ 00Refund- Rental 100-16002 100. 2021INV0009627Brenda Virgen Deposit11/ 22/ 00Refund- Rental 100-16002 100. 2021INV0009628Catherine Duarte Deposit11/ 22/ 00Refund- Rental 100-16002 125. 2021INV0009629Cheyenne Harty Deposit11/ 22/ 00Refund- Rental 100-16002 100. 2021INV0009630Placencia Ofelia Deposit11/ 22/ 00Refund- Rental 100-16002 150. 2021INV0009631Jennifer Henderson Deposit11/ 22/ 00Refund- Rental 100-16002 100. 2021INV0009632Shannon Armenta Deposit11/ 22/ 00Refund- Rental 100-16002 125. 2021INV0009663Cathy Roth Deposit11/ 29/ 00Refund- Rental 100-16002 75. 2021INV0009664Karin Olmedo Deposit11/ 29/ 00Refund- Rental 100-16002 100. 2021INV0009665Celia Anderson Deposit12/ 06/ 00Refund- Rental 100-16002 100. 2021INV0009666Erandy Naves Deposit12/ 06/ 00Refund- Rental 100-16002 100. 2021INV0009667Jamie Martinez Deposit12/ 06/ 00Refund- Rental 100-16002 75. 2021INV0009668Lorna Kreutz Deposit12/ 06/ 00Refund- Rental 100-16002 150. 2021INV0009669Theaterfest Hall12/ 07/ 00Refund- Rental Deposit/ Vets 100-16002 650. 2021INV0009675County of Santa Barbara Fire D… 12/ 02/ 18QTR 1 2022- AMR BLS first Resp…100-16002 4,273. 2021INV0009676Cari Renfrow Deposit12/ 14/ 00Refund- Rental 100-16002 100. 2021INV0009677Cheri Glimp Deposit12/ 14/ 00Refund- Rental 100-16002 100. 2021INV0009707Kira Malone Deposit12/ 20/ 00Refund- Rental 100-16002 75. 21Platinum Plus for Business dba … 20213831 12/ 10/ 12/ 29/ 89Billing- November 11,2021-Dec… 100-20037 2,515. 10,421.64
Department: 1000 - Council
175Quality Code Publishing 20212021- 07/ 01/ 75Recodification of the Solvang M…100-1000-100-57014 3,348. 407Quality Code Publishing 20212021- 11/ 17/ 65Recodification of the Solvang M…100-1000-100-57014 1,179. 202155127Santa Maria Times 11/ 18/ 01Publication- Notice of Public He…100-1000-100-57015 91. 202156986Santa Maria Times 12/ 02/ 14Printing & Publishing- Summary…100-1000-100-57015 81.

SOLVMaria Shafer 20212021- 035 STAC11/ 05/ 00Preparation of Minutes- 100-1000-100-57016 170.

SOLVMaria Shafer 20212021- 036 11/ 11/ 50Preparation of Minutes- Solvang…100-1000-100-57016 297.

SOLVMaria Shafer 20212021- 037 SDRC11/ 22/ 00Preparation of Minutes- 100-1000-100-57016 170.

SOLVMaria Shafer 20212021- 038 11/ 28/ 00Preparation of Minutes- Solvang…100-1000-100-57016 340.

SOLVMaria Shafer 20212021- 039 STAC12/ 05/ 50Preparation of Minutes- 100-1000-100-57016 212.

SOLVMaria Shafer 20212021- 040 12/ 10/ 50Preparation of Minutes- Solvang…100-1000-100-57016 212.

SOLVMaria Shafer 20212021- 041 STAC12/ 13/ 00Preparation of Minutes- 100-1000-100-57016 85.

SOLVMaria Shafer 20212021- 042 12/ 20/ 50Preparation of Minutes- City Co…100-1000-100-57016 212.

SOLVMaria Shafer 20212021- 043 RDRC12/ 22/ 75Preparation of Minutes- 100-1000-100-57016 148. 20216909Tripepi, Smith and Associates, I… Redesign12/ 13/ 00City of Solvang Logo 100-1000-100-57016 1,350. 20213702Solvang Chamber of Commerce 202112/ 09/ 00Christmas Tree 100-1000-100-58001 300. 2021710772Solvang Bakery Inc. BBQ12/ 21/ 00City Hospitality- Staff QTR 100-1000-100-58001 200. 2021593Islay Events 12/ 06/ 00Audio/ Video- City Council/ TAC … 100-1000-100-63002 1,870. 2021597Islay Events 12/ 24/ 00Audio/ Video- City Council/ TAC … 100-1000-100-63002 1,785. 12072021County of Santa Barbara 2021COS12/ 07/ 00Mental Health Assessment Tea… 100-1000-130-56004 2,506. 20211361Santa Barbara Co Sheriff Dept 12/ 15/ 00Contracted Law Enforcement- N…100-1000-130-56006 179,302. 20211365Santa Barbara Co Sheriff Dept 12/ 15/ 00Contracted Law Enforcement- … 100-1000-130-56006 179,302.

Department 1000 - Council Total: 373,164.30
Department: 1100 - Administration
2021135852Advantage Group, The October10/ 31/ 40Admin Flex Fees- 100-1100-105-51005 171. 2021136832Advantage Group, The 12/ 13/ 76Annual Renewal/ Admin Flex Fee…100-1100-105-51005 490.

Item 4c
13 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 2 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 2021INV0009687Advantage Group, The 12/ 22/ 99Retiree Health Reimb. 100-1100-105-51005 6,027. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 18Monthly 100-1100-120-43021 14. 2021INV0009633Claudia Stephenson Screening11/ 22/ 00Employee 100-1100-120-51010 33. 2021INV0009634Lisa Marie Fuog Screening11/ 15/ 60Employee 100-1100-120-51010 63. 2021200010993California Society of Municpal F… CSMFO11/ 10/ 00Education- 100-1100-120-51012 470. 2021INV0009670Jason Banta CStephenson12/ 07/ 00New Hire Lunch- 100-1100-120-51012 45. 202141412810Broadcast Music, Inc Renewal11/ 02/ 00Membership 100-1100-120-52002 368. 20213489722699Staples Advantage Admin10/ 09/ 87Supplies- 100-1100-120-52003 74. 20213492231986Staples Advantage Admin11/ 02/ 69Supplies- 100-1100-120-52003 245. 20213492231987Staples Advantage Admin11/ 06/ 45Supplies- 100-1100-120-52003 6. 20213492231988Staples Advantage Admin11/ 06/ 60Supplies- 100-1100-120-52003 22. 20213492231989Staples Advantage Admin11/ 06/ 52Supplies- 100-1100-120-52003 145. 20213492231990Staples Advantage Admin11/ 06/ 81Supplies- 100-1100-120-52003 12. 20213492695598Staples Advantage Admin11/ 02/ 23Supplies- 100-1100-120-52003 17. 20213493226864Staples Advantage Admin11/ 17/ 63Supplies- 100-1100-120-52003 489. 20213493739301Staples Advantage Admin11/ 24/ 91Supplies- 100-1100-120-52003 52. 20213495005882Staples Advantage Admin12/ 06/ 40Supplies- 100-1100-120-52003 134. 20213495005883Staples Advantage Admin12/ 06/ 64Supplies- 100-1100-120-52003 64. 20213495005884Staples Advantage Admin12/ 06/ 70Supplies- 100-1100-120-52003 37. 20213495005887Staples Advantage Admin12/ 09/ 02Supplies- 100-1100-120-52003 461. 2021INV0009634Lisa Marie Fuog Screening11/ 15/ 98Employee 100-1100-120-52003 25. 2021INV0009683Viking Press Checks12/ 09/ 30Laser 100-1100-120-52003 314. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1100-120-52008 200. 2021011060Exclusive Alarm Services Hall12/ 01/ 00Monitoring Security- City 100-1100-120-54002 186. 2021011061Exclusive Alarm Services Annex12/ 01/ 00Monitoring Security- 100-1100-120-54002 162. 2021011062Exclusive Alarm Services Generatior12/ 01/ 00Monitoring Security- 100-1100-120-54002 150. 2021011063Exclusive Alarm Services 12/ 01/ 00Monitoring Security- Maintenan… 100-1100-120-54002 150. 2021011064Exclusive Alarm Services 12/ 01/ 00Monitoring Security- Water Dep…100-1100-120-54002 150. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 65Lease 100-1100-120-57011 160. 2021234504Richards, Watson & Gershon A … Administration11/ 12/ 06Legal Services- 100-1100-120-57012 9,344. 2021234507Richards, Watson & Gershon A … Personnel11/ 12/ 00Legal Services- 100-1100-120-57012 2,745. 202118984Van Dermyden Makus Law Cor… Works11/ 20/ 71Legal Services- Public 100-1100-120-57016 8,955. 20212378061Vital Records Control Bin11/ 30/ 81Destroy Contents 65 Gallon 100-1100-120-57016 69. 202149414Central Courier LLC 11/ 02/ 19Daily Bank Deposit- 11/ 1/ 21-11…100-1100-120-57016 499. 202149712Central Courier LLC 12/ 01/ 19Daily Bank Deposit- 12/ 01/ 21-1…100-1100-120-57016 499. 202158555420Robert Half International, Inc. 202110/ 05/ 00JNeto- Week Ending 10/ 01/ 100-1100-120-57052 1,620. 202158600641Robert Half International, Inc. 10/ 12/ 00CStephenson- Week Ending 10/…100-1100-120-57052 1,376. 202158600743Robert Half International, Inc. 202110/ 12/ 00JNeto- Week Ending 10/ 08/ 100-1100-120-57052 1,620. 202158831143Robert Half International, Inc. 202111/ 16/ 00JNeto- Week Ending 11/ 12/ 100-1100-120-57052 1,296. 202158831170Robert Half International, Inc. 11/ 16/ 00CStephenson- Week Ending 11/…100-1100-120-57052 688. 202158878086Robert Half International, Inc. 202111/ 23/ 00JNeto- Week Ending 11/ 19/ 100-1100-120-57052 1,296. 202158878541Robert Half International, Inc. 11/ 23/ 00CStephenson- Week Ending 11/…100-1100-120-57052 1,720. 202158880066Robert Half International, Inc. 11/ 23/ 00CStephenson- Subtotal for Wee…100-1100-120-57052 9,400. 202158920913Robert Half International, Inc. 202111/ 30/ 00NetoJ- Week Ending 11/ 26/ 100-1100-120-57052 972. 202158967386Robert Half International, Inc. 202112/ 07/ 00JNeto- Week Ending 12/ 03/ 100-1100-120-57052 1,620. 202159015568Robert Half International, Inc. 2112/ 14/ 00JNeto- Week Ending 12/ 10/ 100-1100-120-57052 1,296. 202159063137Robert Half International, Inc. 2112/ 21/ 00JNeto- Week Ending 12/ 17/ 100-1100-120-57052 1,620. 2021AS11210855Satcom Global FZE Card12/ 01/ 75SIM100-1100-120-60006 42. 21Comcast 20210775 11/ 15/ 93975077511/ 24/ 54Acct# 100-1100-121-57064 384. 21Comcast 20210775 12/ 15/ 93975077512/ 15/ 54Acct# 100-1100-121-57064 384. 202115038Advanced Cable Systems Cubicles11/ 23/ 43IT Expenses- 100-1100-121-57064 2,821. 20211540323498Adobe Systems Incorporated Adobe12/ 02/ 20IT Expenses- 100-1100-121-57064 140. 202153276LanspeedJuly12/ 01/ 90It Support/ Monthly Billing - 100-1100-121-57064 4,107. 2021Frontier Communications 20215575 11/ 13/ 511/ 13/ 35Acc# 805-688-5575-062171- 100-1100-121-57064 61. 2021Frontier Communications 20215575 12/ 13/ 512/ 13/ 35Acc# 805-688-5575-062171- 100-1100-121-57064 61. 2021Comcast 20215898 11/ 28/ 012589811/ 28/ 19Acct# 8155 70 005 100-1100-121-57064 83. 2021Comcast 20219241 11/ 20/ 000924111/ 20/ 23Acct# 8155 70 005 100-1100-121-57064 13. 20219893198967Verizon Wireless Services, LLC 111/ 30/ 01805- 757-7122 Maintenance # 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC Garcia11/ 30/ 06805- 588-4668 Jorge 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC Clarke11/ 30/ 29805- 245-1860 Robert 100-1100-121-57064 28. 14 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 3 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 20219893198967Verizon Wireless Services, LLC Orona11/ 30/ 30805 697-6583 Claudia 100-1100-121-57064 25. 20219893198967Verizon Wireless Services, LLC Infanti11/ 30/ 16805 697-6581 Mark 100-1100-121-57064 25. 20219893198967Verizon Wireless Services, LLC Department11/ 30/ 16805- 588-5942 Rec 100-1100-121-57064 25. 20219893198967Verizon Wireless Services, LLC Thomas11/ 30/ 71805 697-6579 Jim 100-1100-121-57064 23. 20219893198967Verizon Wireless Services, LLC 411/ 30/ 57805- 325-9790 Emergency/# 100-1100-121-57064 23. 20219893198967Verizon Wireless Services, LLC 511/ 30/ 57805- 325-5093 Emergency/# 100-1100-121-57064 23. 20219893198967Verizon Wireless Services, LLC Uhrig11/ 30/ 42805 697-6584 Charlie 100-1100-121-57064 25. 20219893198967Verizon Wireless Services, LLC B11/ 30/ 57805- 325-9013 Jenny 100-1100-121-57064 23. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 10805- 757-7116 Maintenance Te… 100-1100-121-57064 15. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 58805- 588-4423 Code Enforceme… 100-1100-121-57064 12. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 60805- 350-8432 Maintenance Ipa…100-1100-121-57064 7. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 60805- 325-8671 Maintenance iPa… 100-1100-121-57064 7. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 60805- 325-8474 Maintenance iPa… 100-1100-121-57064 7. 20219893198967Verizon Wireless Services, LLC Cano11/ 30/ 61805- 588-1900 Raymond 100-1100-121-57064 50. 20219893198967Verizon Wireless Services, LLC Garcia11/ 30/ 03805- 588-4668 Jorge 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 311/ 30/ 57805- 325-9450 Emergency/# 100-1100-121-57064 23. 20219893198967Verizon Wireless Services, LLC 111/ 30/ 03805- 757-7122 Maintenance # 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 51805- 325-8671 Maintenance iPa… 100-1100-121-57064 9. 20219893198967Verizon Wireless Services, LLC Garcia11/ 30/ 08805- 588-4668 Jorge 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 111/ 30/ 04805- 757-7122 Maintenance # 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 50805- 325-8671 Maintenance iPa… 100-1100-121-57064 9. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 50805- 325-8474 Maintenance iPa… 100-1100-121-57064 9. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 40805- 350-8432 Maintenance Ipa…100-1100-121-57064 11. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 40805- 325-8474 Maintenance iPa… 100-1100-121-57064 11. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 03805- 757-7116 Maintenance Te… 100-1100-121-57064 5. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 03805- 757-7116 Maintenance Te… 100-1100-121-57064 5. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 03805- 588-4423 Code Enforceme… 100-1100-121-57064 5. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 03805- 588-4423 Code Enforceme… 100-1100-121-57064 5. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 26805- 588-4423 Code Enforceme… 100-1100-121-57064 1. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 26805- 588-4423 Code Enforceme… 100-1100-121-57064 1. 20219893198967Verizon Wireless Services, LLC Trejo11/ 30/ 49805- 757-2137 Alfredo 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC Pacheco11/ 30/ 805-588-4657 Frank 100-1100-121-57064 0.77. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 41805- 588-8119 PW & Parks On C…100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 41805- 588-8119 PW & Parks On C…100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC Trejo11/ 30/ 38805- 757-2137 Alfredo 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC Pacheco11/ 30/ 805-588-4657 Frank 100-1100-121-57064 0.26. 20219893198967Verizon Wireless Services, LLC Pacheco11/ 30/ 805-588-4657 Frank 100-1100-121-57064 0.25. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 51805- 350-8432 Maintenance Ipa…100-1100-121-57064 9. 20219893198967Verizon Wireless Services, LLC Quiroz11/ 30/ 24805- 325-8041 Alex 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC Trejo11/ 30/ 23805- 757-2137 Alfredo 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 51805- 325-8474 Maintenance iPa… 100-1100-121-57064 9. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 50805- 350-8432 Maintenance Ipa…100-1100-121-57064 9. 20219893198967Verizon Wireless Services, LLC 111/ 30/ 09805- 757-7122 Maintenance # 100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 43805- 588-8119 PW & Parks On C…100-1100-121-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 40805- 325-8671 Maintenance iPa… 100-1100-121-57064 11. 000321668RingCentral, Inc. 2021CD_ 11/ 15/ 66Phone System Subscription- No…100-1100-121-57064 1,065.

Department 1100 - Administration Total: 67,189.56
Department: 1200 - Planning & Building
2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1200-200-52008 25. 12Mintier Harnish, LP 2021SolvangGPU- Update12/ 16/ 73Solvang General Plan 100-1200-200-57007 50,320. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 93Lease 100-1200-200-57011 51. 2021234505Richards, Watson & Gershon A … 11/ 12/ 00Legal Services- Community Deve…100-1200-200-57012 3,870. 2021234508Richards, Watson & Gershon A … 11/ 12/ 50Legal Services- Code Enforceme… 100-1200-200-57012 517. 202110245Urban Planning Concepts, Inc. 12/ 07/ 00Consulting Services- 11/ 01/ 21-… 100-1200-200-57016 14,100. 1177PleinAire Design Group 20212021. 11/ 16/ 25Project- Solvang MWELO/ Nove… 100-1200-200-57016 306. 1199PleinAire Design Group 20212021. 12/ 01/ 75Project- Solvang MWELO/ throu…100-1200-200-57016 393. 202158570098Robert Half International, Inc. 10/ 05/ 70AGaillard- Week Ending 10/ 01/ 2…100-1200-200-57016 583. 202158622559Robert Half International, Inc. 10/ 13/ 02AGaillard- Week Ending 10/ 08/… 100-1200-200-57016 645. 202158859313Robert Half International, Inc. 11/ 18/ 23AGaillard- Week Ending 11/ 12/… 100-1200-200-57016 422. 202158894588Robert Half International, Inc. 11/ 23/ 98AGaillard- Week Ending 11/ 19/… 100-1200-200-57016 428. 15 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 4 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 202158912287Robert Half International, Inc. 11/ 29/ 79AGaillard- Week Ending 11/ 26/… 100-1200-200-57016 222. 202158981427Robert Half International, Inc. 12/ 07/ 52AGaillard- Week Ending 12/ 03/… 100-1200-200-57016 649. 202159028638Robert Half International, Inc. 12/ 14/ 75AGaillard- Week Ending 12/ 10/… 100-1200-200-57016 534. 20219Eddie Hsueh 12/ 04/ 50Code Enforcement- November-… 100-1200-201-57063 1,982. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1200-210-52008 25. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 91Lease 100-1200-210-57011 21. 202100225507Willdan Engineering 11/ 26/ 00Profession Services- 10/ 01/ 21-… 100-1200-210-57016 6,280. 202100225508Willdan Engineering 11/ 26/ 00Profession Services- 10/ 01/ 21-… 100-1200-210-57016 2,535. 25509Willdan Engineering 2021002- 11/ 26/ 66Profession Services- 10/ 01/ 21-… 100-1200-210-57016 1,226. 25569Willdan Engineering 2021002- 12/ 14/ 74Professional Services- 11/ 01/ 21…100-1200-210-57016 5,019. 202100225781Willdan Engineering 12/ 14/ 00Professional Services- 11/ 01/ 21…100-1200-210-57016 8,760. 202100225782Willdan Engineering 12/ 14/ 00Professional Services- 11/ 01/ 21…100-1200-210-57016 2,600.

Department 1200 - Planning & Building Total: 101,522.96 Department: 1300 - Parks and Recreation
2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1300-300-52008 25. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 96Lease 100-1300-300-57011 68. 20213493226865Staples Advantage Recreation11/ 19/ 86Supplies- 100-1300-350-52003 92. 20213495005888Staples Advantage Recreation12/ 07/ 09Supplies- 100-1300-350-52003 43. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1300-350-52008 50. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 74Lease 100-1300-350-57011 52. 1201City of Buellton 20212021- 12/ 01/ 32Shared Rec. Expenses- July -Sep…100-1300-350-57015 175. 2021INV0009637Frederick Paul Lageman 11/ 30/ 50Professional Services- Special E… 100-1300-350-57016 1,231. 2021INV0009604Christophe Millner 11/ 22/ 80Recreation Program- Kung Fu In…100-1300-365-52005 240. 2021INV0009626Nicholas Aichinger 11/ 18/ 00Recreation Programs- Skateboa… 100-1300-365-52005 539. 2021INV0009635Christophe Millner 12/ 01/ 60Recreation Program- Kung Fu In…100-1300-365-52005 180. 319715Valley Fresh Market, LLC 202103- Trout11/ 30/ 96Special Event- Turkey 100-1300-375-52005 21. 2021INV0009672SYV Salvation Army Service 12/ 02/ 00Recreation Program- Turkey Tro…100-1300-375-52005 300.

Department 1300 - Parks and Recreation Total: 3,021.83
Department: 1400 - Tourism
2021INV0009680Visit the Santa Ynez Valley 12/ 01/ 74SYVTBID- October ( Collected in …100-1400-400-43020 910. 202114457Inner Nature 11/ 30/ 00Village Planter Maintenance- No…100-1400-400-57029 2,400. 202112Rafael Garcia 12/ 01/ 00Landscape Maintenance- Copen… 100-1400-400-59010 650. 2021Comcast 20211629 11/ 15/ 96306162911/ 15/ 05Acct# 100-1400-400-59010 388. 2021Comcast 20211629 12/ 15/ 96306162912/ 15/ 05ACCT# 100-1400-400-59010 388. 20211790IDK Events, LLC Payment10/ 29/ 002021/ 2022- October 100-1400-400-59010 50,000. 20211791IDK Events, LLC Payment11/ 01/ 002021/ 2022- November 100-1400-400-59010 50,000. 20211793IDK Events, LLC 10/ 31/ 112021/ 2022- October Payment V…100-1400-400-59010 8,265. 20211794IDK Events, LLC 11/ 01/ 112021/ 2022- November Payment…100-1400-400-59010 8,265. 2021Frontier Communications 20214056 11/ 11/ 8056864056091119511/ 11/ 08Acct# 100-1400-400-59010 133. 2021Frontier Communications 20214056 12/ 11/ 512/ 15/ 08Acct# 805-686-4056-091119- 100-1400-400-59010 133. 2021INV0009686Solvang Chamber of Commerce Program12/ 22/ 00Economic Development 100-1400-400-59010 35,000. 2021INV0009680Visit the Santa Ynez Valley 12/ 01/ 26SYVTBID- October ( Collected in …700-1400-400-59016 44,626. 2021INV0009680Visit the Santa Ynez Valley 12/ 01/ 74SYVTBID- October ( Collected in …700-1400-400-61003 910.

Department 1400 - Tourism Total: 200,248.74
Department: 1600 - Public Works/ Engineering
202111466Nielsen Building Material Works12/ 08/ 95Saftey Gear- Public 100-1600-300-51014 77. 2021INV0009642Jim' s Service Center November12/ 03/ 87Vehicle Fuel- 100-1600-300-52015 86. 2021INV0009642Jim' s Service Center November12/ 03/ 00Vehicle Fuel- 100-1600-300-52015 82. 2021INV0009642Jim' s Service Center November12/ 03/ 85Vehicle Fuel- 100-1600-300-52015 207. 2021INV0009642Jim' s Service Center November12/ 03/ 19Vehicle Fuel- 100-1600-300-52015 16. 2021INV0009642Jim' s Service Center November12/ 03/ 91Vehicle Fuel- 100-1600-300-52015 81. 001SiteOne Landscaping Supply, LLC 2021114944066- HCA11/ 30/ 54Repairs & Maintenance- 100-1600-310-53003 585. 001SiteOne Landscaping Supply, LLC 2021114981680- HCA12/ 01/ 26Repairs & Maintenance- 100-1600-310-53003 45. 2021449981Dog Waste Depot 11/ 24/ 35Repairs and Maintenance- SFP/… 100-1600-310-53003 103. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 90Monthly 100-1600-310-53003 115. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 270408007479 Parks Shop (HCA) … 100-1600-310-55001 44. 2021Pacific Gas & Electric Company 20217582 11/ 17/ BQ11/ 17/ 240408007896 Bar 100-1600-310-55001 15. 202110757Valley Shield Termite and Pest … HCA11/ 22/ 00Pest Management- 100-1600-310-57057 100. 202111055Valley Shield Termite and Pest … HCA12/ 06/ 00Pest Management- 100-1600-310-57057 100. 16 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 5 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 202111057Valley Shield Termite and Pest … SFP12/ 03/ 00Pest Management- 100-1600-310-57057 100. 2021147079Procare Janitorial Supply, Inc 211/ 19/ 69Supplie- RR# 100-1600-320-52003 475. 2021147215Procare Janitorial Supply, Inc 211/ 24/ 23Supplies- RR# 100-1600-320-52003 420. 2021147216Procare Janitorial Supply, Inc 211/ 24/ 12Supplies- RR# 100-1600-320-52003 439. 2021147217Procare Janitorial Supply, Inc 211/ 24/ 20Supplies- RR# 100-1600-320-52003 188. 2021147430Procare Janitorial Supply, Inc 212/ 03/ 69Supplies- RR# 100-1600-320-52003 475. 2021147432Procare Janitorial Supply, Inc 212/ 03/ 71Supplies- RR# 100-1600-320-52003 498. 2021147080Procare Janitorial Supply, Inc 211/ 19/ 11Supplie- RR# 100-1600-320-53003 319. 20219556832Ferguson Waterworks # 1083 211/ 12/ 30Repairs & Maintenance- RR# 100-1600-320-53003 573. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 14Monthly 100-1600-320-53003 89. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 420408007947 City park restroom…100-1600-320-55001 21. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 491840991761 1600 Mission Park… 100-1600-320-55001 73. 202130882The Valley Gardener 11/ 25/ 00Christmas Tree Maintenance- N…100-1600-320-57023 300. 2021147084Procare Janitorial Supply, Inc SFP11/ 19/ 68Supplie- 100-1600-330-52003 498. 2021147085Procare Janitorial Supply, Inc SFP11/ 19/ 66Supplie- 100-1600-330-52003 237. 2021502000321366Aramark Uniform Service 11/ 08/ 06Supplies- City Hall, Vets Hall, An…100-1600-330-52003 43. 2021502000342281Aramark Uniform Service 12/ 06/ 06Supplies- City Hall/ Annex/ Vets … 100-1600-330-52003 43. 2021449981Dog Waste Depot 11/ 24/ 36Repairs and Maintenance- SFP/… 100-1600-330-53003 103. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 596518806365 900 Alamo Pintado…100-1600-330-55001 49. 21S. Y.R.W.C.D. ID #1 20210001 11/ 30/ 11/ 30/ 5511/ 30/ 21-900 Alamo Pintado Rd. 100-1600-330-55002 1,670. 202110759Valley Shield Termite and Pest … SFP11/ 19/ 00Pest Management- 100-1600-330-57057 100. 202110760Valley Shield Termite and Pest … SFP11/ 24/ 00Pest Management- 100-1600-330-57057 100. 202110768Valley Shield Termite and Pest … SFP11/ 24/ 00Pest Management- 100-1600-330-57057 85. 202111058Valley Shield Termite and Pest … SFP12/ 09/ 00Pest Management- 100-1600-330-57057 100. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 760408007090 Alisal Cmmn' s park…100-1600-340-55001 12. 20211775Rafael Ruiz Janitor Service 11/ 08/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,200. 20211776Rafael Ruiz Janitor Service 11/ 08/ 00Janitorial Services- City Restroo… 100-1600-400-57005 2,094. 20211777Rafael Ruiz Janitor Service 11/ 08/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,440. 20211778Rafael Ruiz Janitor Service 11/ 15/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,500. 20211779Rafael Ruiz Janitor Service 11/ 15/ 00Janitorial Services- City Restroo… 100-1600-400-57005 2,094. 20211780Rafael Ruiz Janitor Service 11/ 15/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,680. 20211781Rafael Ruiz Janitor Service 11/ 15/ 00Janitorial Services- City Restroo… 100-1600-400-57005 3,368. 20211783Rafael Ruiz Janitor Service 11/ 22/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,200. 20211784Rafael Ruiz Janitor Service 11/ 22/ 00Janitorial Services- City Restroo… 100-1600-400-57005 2,094. 20211785Rafael Ruiz Janitor Service 11/ 22/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,440. 20211786Rafael Ruiz Janitor Service 11/ 22/ 00Janitorial Services- City Restroo… 100-1600-400-57005 960. 20211788Rafael Ruiz Janitor Service 11/ 30/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,200. 20211789Rafael Ruiz Janitor Service 11/ 29/ 00Janitorial Services- City Restroo… 100-1600-400-57005 2,094. 20211790Rafael Ruiz Janitor Service 11/ 30/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,440. 20211791Rafael Ruiz Janitor Service 11/ 30/ 00Janitorial Services- City Restroo… 100-1600-400-57005 3,368. 20211792Rafael Ruiz Janitor Service 11/ 30/ 00Janitorial Services- City Restroo… 100-1600-400-57005 720. 20211795Rafael Ruiz Janitor Service 12/ 06/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,200. 20211796Rafael Ruiz Janitor Service 12/ 06/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,184. 20211797Rafael Ruiz Janitor Service 12/ 06/ 00Janitorial Services- City Restroo… 100-1600-400-57005 1,440. 20211802Rafael Ruiz Janitor Service 12/ 13/ 00Janitorial Services- City Restroo… 100-1600-400-57005 3,368. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1600-600-52008 25. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 28Lease 100-1600-600-57011 20. 20210084556Rick Engineering & Developmen… 11/ 16/ 00Engineering Services- 9/ 25/ 21-… 100-1600-600-57016 1,025. 2021INV0009636Cole Phillips Stipend12/ 02/ 00Engineering Intern- 100-1600-600-57016 1,751. 2021INV0009673Niles Christopher Ramos Stipend12/ 10/ 00Engineering Intern- 100-1600-600-57016 1,320. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 00Postage11/ 15/ 100-1600-605-52008 25. 202154783Farm Supply Co 12/ 03/ 33Repairs & Maintenance- Maint… 100-1600-605-53003 32. 2021WO130110903Quinn Rental Services 11/ 10/ 00Repairs & Maintenance- Maint… 100-1600-605-53003 390. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 13Lease 100-1600-605-57011 38. 2021147437Procare Janitorial Supply, Inc Hall12/ 03/ 10Supplies- Vets 100-1600-610-52003 410. 2021502000321366Aramark Uniform Service 11/ 08/ 06Supplies- City Hall, Vets Hall, An…100-1600-610-52003 43. 2021502000342281Aramark Uniform Service 12/ 06/ 06Supplies- City Hall/ Annex/ Vets … 100-1600-610-52003 43. 202112327Nielsen Building Material 12/ 14/ 01Repairs & Maintenance- Vets Ha…100-1600-610-53003 21. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Bldg11/ 17/ 420408007128 Memorial 100-1600-610-55001 428. 2021Comcast 20218155 12/ 05/ 0022815512/ 05/ 06Acct# 815570 005 100-1600-610-55001 86. 17 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 6 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 202110763Valley Shield Termite and Pest … Hall11/ 22/ 00Pest Management- Vets 100-1600-610-57057 100. 202111062Valley Shield Termite and Pest … Hall12/ 06/ 00Pest Management- Vets 100-1600-610-57057 100. 2021502000321366Aramark Uniform Service 11/ 08/ 06Supplies- City Hall, Vets Hall, An…100-1600-620-52003 43. 2021502000342281Aramark Uniform Service 12/ 06/ 06Supplies- City Hall/ Annex/ Vets … 100-1600-620-52003 43. 202110047Nielsen Building Material Hall12/ 01/ 94Repairs & Maintenance- City 100-1600-620-53003 47. 001SiteOne Landscaping Supply, LLC 2021114411408- Hall11/ 05/ 16Repairs & Maintenance- City 100-1600-620-53003 638. 001SiteOne Landscaping Supply, LLC 2021114432086- Hall11/ 05/ 55Repairs & Maintenance- City 100-1600-620-53003 729. 001SiteOne Landscaping Supply, LLC 2021114476712- Hall11/ 09/ 53Repairs & Maintenance- City 100-1600-620-53003 775. 001SiteOne Landscaping Supply, LLC 2021114477283- Hall11/ 08/ 76Repairs & Maintenance- City 100-1600-620-53003 107. 001SiteOne Landscaping Supply, LLC 2021114682572- Hall11/ 16/ 29Repairs & Maintenance- City 100-1600-620-53003 61. 001SiteOne Landscaping Supply, LLC 2021114736795- Hall11/ 17/ 83Repairs & Maintenance- City 100-1600-620-53003 215. 674D. L. Electric Inc. 202121-Hall11/ 30/ 50Repairs & Maintenance- City 100-1600-620-53003 2,364. 690D. L. Electric Inc. 202121-Hall11/ 19/ 50Repairs & Maintenance- City 100-1600-620-53003 306. 20213537Flynn' s Heating & Air 11/ 17/ 00Repairs and Maintenance- City … 100-1600-620-53003 130. 20Clean Machine Laundromat 20216096- Hall11/ 15/ 50Repairs & Maintenance- City 100-1600-620-53003 34. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 48Monthly 100-1600-620-53003 162. 2021INV0009679Rayne Water Conditioning Hall12/ 15/ 36Repairs & Maintenance- City 100-1600-620-53003 213. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Hall11/ 17/ 480408007413 City 100-1600-620-55001 497. 2021Southern California Gas Compa… 20219500 11/ 19/ 011/ 19/ 99Acct# 098 214 9500 100-1600-620-55001 68. 2021147076Procare Janitorial Supply, Inc Annex11/ 19/ 36Supplies- 100-1600-630-52003 103. 2021502000321366Aramark Uniform Service 11/ 08/ 06Supplies- City Hall, Vets Hall, An…100-1600-630-52003 43. 2021502000342281Aramark Uniform Service 12/ 06/ 06Supplies- City Hall/ Annex/ Vets … 100-1600-630-52003 43. 20211033249Coastal Valleys Roofing Co. LLC repairs12/ 02/ 00Annex roof 100-1600-630-53003 1,084. 202110754Valley Shield Termite and Pest … Annex11/ 22/ 00Pest Management- 100-1600-630-53003 75. 2021Pacific Gas & Electric Company 20217582 11/ 17/ St11/ 17/ 817382657678 411 Second 100-1600-630-55001 326. 2021Southern California Gas Compa… 20219410 11/ 19/ 611/ 19/ 70Acct# 188 514 9410 100-1600-630-55001 107. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Vistors11/ 17/ 100408007667 Conference 100-1600-650-55001 60. 2021147081Procare Janitorial Supply, Inc 111/ 19/ 65Supplie- RR# 100-1600-670-52003 391. 2021147427Procare Janitorial Supply, Inc 112/ 03/ 62Supplies- RR# 100-1600-670-52003 472. 2021147428Procare Janitorial Supply, Inc 112/ 03/ 46Supplies- RR# 100-1600-670-52003 457. 2021147429Procare Janitorial Supply, Inc 112/ 03/ 94Supplies- RR# 100-1600-670-52003 180. 2021502000299520Aramark Uniform Service 110/ 11/ 88Supplies- RR# 100-1600-670-52003 261. 2021502000321364Aramark Uniform Service 111/ 08/ 88Supplies- RR# 100-1600-670-52003 261. 2021502000342277Aramark Uniform Service 112/ 06/ 88Supplies- RR# 100-1600-670-52003 261. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Restroom11/ 17/ 272465713408 Alisal 100-1600-670-55001 329. 2021147077Procare Janitorial Supply, Inc 311/ 19/ 33Supplies- RR# 100-1600-680-52003 440. 2021147078Procare Janitorial Supply, Inc 311/ 19/ 73Supplie- RR# 100-1600-680-52003 62. 2021147433Procare Janitorial Supply, Inc 312/ 03/ 41Supplies- RR# 100-1600-680-52003 461. 2021147434Procare Janitorial Supply, Inc 312/ 03/ 68Supplies- RR# 100-1600-680-52003 251. 2021502000299521Aramark Uniform Service 310/ 11/ 16Supplies- RR# 100-1600-680-52003 272. 2021502000321365Aramark Uniform Service 311/ 08/ 16Supplies- RR# 100-1600-680-52003 272. 2021502000342278Aramark Uniform Service 312/ 06/ 16Supplies- RR# 100-1600-680-52003 272. 1Ferguson Waterworks # 1083 20219556832-11/ 24/ 92Repairs & Maintenance- RR# 100-1600-680-53003 312. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 76Monthly 100-1600-680-53003 10. 2021Pacific Gas & Electric Company 20217582 11/ 17/ restroom11/ 17/ 200408007539 Lot #3 100-1600-680-55001 316. 2021147082Procare Janitorial Supply, Inc Roads11/ 19/ 12Supplies- 100-1600-690-52003 491. 2021147083Procare Janitorial Supply, Inc Roads11/ 19/ 95Supplie- 100-1600-690-52003 47. 2021147435Procare Janitorial Supply, Inc Roads12/ 03/ 18Supplies- 100-1600-690-52003 443. 2021147436Procare Janitorial Supply, Inc Roads12/ 03/ 78Supplies- 100-1600-690-52003 170. 2021INV0009642Jim' s Service Center November12/ 03/ 31Vehicle Fuel- 100-1600-690-52015 210. 2021INV0009642Jim' s Service Center November12/ 03/ 02Vehicle Fuel- 100-1600-690-52015 139. 20219089Nielsen Building Material Roads11/ 24/ 81Repairs & Maintenance- 100-1600-690-53003 39. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 00Monthly 100-1600-690-53003 79. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Mission11/ 17/ 940053695143 1250 100-1600-690-53007 14. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 770408007080 City Sign HWY 246…100-1600-690-53007 9. 2021INV0009678James Enderle 12/ 01/ 00City of Solvang Sign- January 20…100-1600-690-53007 450. 2021Pacific Gas & Electric Company 20215526 12/ 15/ 112/ 15/ 99Acc# 3982645526- 100-1600-690-55006 5,535. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 337478349044 Tree Lighting 1663…100-1600-690-55006 37. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 748848923416 Tree Lighting 1637…100-1600-690-55006 60. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 08Lease 100-1600-690-57011 77. 18 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 7 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 202178738MNS Engineers, Inc. Plan12/ 08/ 00Local Road Safety 100-1600-690-70105 2,565. 202120117501Quinn Rental Services 12/ 15/ 33Boom lift for lights and 246 ban…100-1600-700-52012 1,124. 2021ARINV015460Dekra- Lite Industries, Inc. lights11/ 22/ 27tree 100-1600-700-52012 802. 2021ARINV015461Dekra- Lite Industries, Inc. lights11/ 22/3tree 100-1600-700-52012 401. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 23Lease 100-1600-700-57011 16. 2021Pacific Gas & Electric Company 20215526 12/ 15/ 112/ 15/ 39Acc# 3982645526- 100-1600-710-55001 481. 2021202105910Dudek08/ 18/ 50Professional Services- June 26,2…100-1600-710-57016 942. 20212206Hanly General Engineering Corp 12/ 13/ 00Storm Drain Outfalls 19-20-21 … 100-1600-720-53003 3,900. 20212207Hanly General Engineering Corp 12/ 13/ 00Storm Drain Outfalls 19-20-21 … 100-1600-720-53003 3,700. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 57Lease 100-1600-720-57011 27. 202177869MNS Engineers, Inc. 12/ 01/ 00Stormwater Management Progr…100-1600-720-57016 4,050. 202178203MNS Engineers, Inc. 11/ 30/ 00Stormwater Management Progr…100-1600-720-57016 270. 202178819MNS Engineers, Inc. 10/ 08/ 75Stormwater Management Progr…100-1600-720-57016 2,058. 202179049MNS Engineers, Inc. 12/ 01/ 25Stormwater Management Progr…100-1600-720-57016 4,156. 202179091MNS Engineers, Inc. 12/ 01/ 00Stormwater Management Progr…100-1600-720-57016 1,495. 202181442SP Maintenance Services, Inc Sweeping10/ 31/ 40Street 100-1600-720-57022 2,770. 202181917SP Maintenance Services, Inc Sweeping11/ 30/ 40Street 100-1600-720-57022 2,770. 20211120210689Underground Service Alert of S… Tickets12/ 01/ 2518 New 100-1600-720-57028 33. 2021dsb20206196Underground Service Alert of S… Fee12/ 01/ 97Dig Safe Board 100-1600-720-57028 2. 202178041Cannon Associates II12/ 14/ 00Second St. Drainage Phase 100-1600-720-70614 2,020. 3313Santa Barbara Office Interiors, I…202121- Cubicles11/ 17/ 50Annex - North Wing 300-1600-600-70105 21,813. 202126070EMTS, Inc. 12/ 09/ 00City Hall Sustainable Landscapi… 300-1600-600-70105 26,500. 202195237280CalPortland Construction 12/ 10/ 93S. Alisal Pavement Reconstructi… 300-1600-600-70105 38,189. 202195278241CalPortland Construction 11/ 29/ 50S. Alisal Pavement Reconstructi… 300-1600-600-70105 2,195. 2021INV0009674County of Santa Barbara Improvements12/ 14/ 00Projects- HCA 300-1600-600-70105 50.

Department 1600 - Public Works/ Engineering Total: 193,339.16 Department: 2100 - Gas Tax
202195237280CalPortland Construction 12/ 10/ 54S. Alisal Pavement Reconstructi… 300-2100-801-70105 236,777. 202195278241CalPortland Construction 11/ 29/ 08S. Alisal Pavement Reconstructi… 300-2100-801-70105 13,612.

Department 2100 - Gas Tax Total: 250,389.62
Department: 2500 - Measure A
202195237280CalPortland Construction 12/ 10/ 83S. Alisal Pavement Reconstructi… 300-2500-803-70105 815,322. 202195278241CalPortland Construction 11/ 29/ 02S. Alisal Pavement Reconstructi… 300-2500-803-70105 46,872. 2021JC1606x4NovSunbeam Solar Technologies, In… 12/ 15/ 00S. Alisal Pavement Recon. CM & …300-2500-803-70105 8,872.

Department 2500 - Measure A Total: 871,066.85
Department: 2600 - AB 1600 Impact Fees
202195237280CalPortland Construction 12/ 10/ 49S. Alisal Pavement Reconstructi… 300-2600-805-70105 54,993. 202195278241CalPortland Construction 11/ 29/ 52S. Alisal Pavement Reconstructi… 300-2600-805-70105 3,161.

Department 2600 - AB 1600 Impact Fees Total: 58,155.01
Department: 3500 - Solvang Mesa LLD
20217524345BrightView Landscape Services 09/ 30/ 00SM- LLMD Landscape Maintena… 205-3500-804-53005 6,958. 20217584502BrightView Landscape Services 10/ 30/ 00SM- LLMD Landscape Maintena… 205-3500-804-53005 6,958. 20217615051BrightView Landscape Services 12/ 13/ 00SM- LLMD Landscape Maintena… 205-3500-804-53005 6,958. 21Pacific Gas & Electric Company 20215240 12/ 14/ 112/ 14/ 17Acct# 0053695240- 205-3500-804-55001 518. 21Pacific Gas & Electric Company 20218063 12/ 17/ 012/ 17/6ACCT# 9910298063- 205-3500-804-55001 38.

Department 3500 - Solvang Mesa LLD Total: 21,430.43
Department: 5000 - Transit
20216593Roadrunner Management Servi… 41Farebox11/ 01/ 502-5000-850-35021 3,552. 20216604Roadrunner Management Servi… 28Farebox12/ 01/ 502-5000-850-35021 3,391. 0356California Association for Corrdi…20212022- 11/ 29/ 002022 Public Operations/ Transp… 502-5000-850-52002 560. 20211037Roadrunner Management Servi… 10/ 31/ 52Fuel Reimbursement- October 2…502-5000-850-52015 8,399. 20216605Roadrunner Management Servi… 12/ 01/ 05Fuel Reimbursement- November…502-5000-850-52015 8,333. 20216593Roadrunner Management Servi… Comcast11/ 01/ 00IT Services- 502-5000-850-55003 105. 20216604Roadrunner Management Servi… 00Comcast12/ 01/ 502-5000-850-55003 105. 20217414City of Lompoc Finance Dept. 11/ 10/ 66Wine Country Express - Solvang …502-5000-850-56003 1,666. 20216593Roadrunner Management Servi… Contract11/ 01/ 00SYVT Operations 502-5000-850-56010 57,261. 20216604Roadrunner Management Servi… Contract12/ 01/ 09SYVT Operations 502-5000-850-56010 53,147. 4721Moore & Associates, Inc. 202121. Services10/ 06/ 11SYVT Marketing 502-5000-850-57001 6,772. 4730Moore & Associates, Inc. 202121. Services11/ 07/ 09SYVT Marketing 502-5000-850-57001 3,044. 19 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 8 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 4746Moore & Associates, Inc. 202121. Services12/ 13/ 00SYVT Marketing 502-5000-850-57001 1,500. 2021INV0009639Menveg Properties LLC Rent12/ 01/ 00December Transit 502-5000-850-57011 545. 4721Moore & Associates, Inc. 202121. 04Printing10/ 06/ 502-5000-850-57015 1,111. 4722Moore & Associates, Inc. 202121. 50Printing10/ 06/ 502-5000-850-57015 3. 4730Moore & Associates, Inc. 202121. 50Printing11/ 07/ 502-5000-850-57015 3. 4731Moore & Associates, Inc. 202121. 75Printing11/ 07/ 502-5000-850-57015 1. 4747Moore & Associates, Inc. 202121. 14Printing12/ 13/ 502-5000-850-57015 123. 4722Moore & Associates, Inc. 202121. Services10/ 06/ 00SYVT Management 502-5000-850-57016 2,025. 4731Moore & Associates, Inc. 202121. Services11/ 07/ 00SYVT Management 502-5000-850-57016 1,500. 4747Moore & Associates, Inc. 202121. Services12/ 13/ 00SYVT Management 502-5000-850-57016 6,815.

Department 5000 - Transit Total: 146,077.76
Department: 5100 - Water
2021135852Advantage Group, The October10/ 31/ 55Admin Flex Fees- 500-5100-105-51005 13. 2021136832Advantage Group, The 12/ 13/ 79Annual Renewal/ Admin Flex Fee…500-5100-105-51005 38. 2021INV0009687Advantage Group, The 12/ 22/ 68Retiree Health Reimb. 500-5100-105-51005 475. 202101K6802214026ReadyRefresh by Nestle Water11/ 26/ 01Supplies- 500-5100-501-52003 14. 2021100258702Tractor Supply Credit Plan Water11/ 29/ 15Supplies- 500-5100-501-52003 156. 001SiteOne Landscaping Supply, LLC 2021115106489- Water12/ 07/ 32Supplies- 500-5100-501-52003 234. 627142Cal- Coast Irrigation 20212111- Water11/ 05/ 09Supplies- 500-5100-501-52003 44. 20213493226863Staples Advantage Water11/ 15/ 07Supplies- 500-5100-501-52003 65. 20213494533126Staples Advantage Water12/ 03/ 43Supplies- 500-5100-501-52003 117. 20213495005880Staples Advantage Water12/ 08/ 01Supplies- 500-5100-501-52003 35. 20213495005881Staples Advantage Water12/ 08/ 49Supplies- 500-5100-501-52003 32. 202154350Farm Supply Co Water11/ 10/ 11Supplies- 500-5100-501-52003 113. 2021805075USA Blue Book Water11/ 30/ 67Supplies- 500-5100-501-52003 553. 2021805187USA Blue Book Water11/ 30/ 86Supplies- 500-5100-501-52003 118. 20218459Nielsen Building Material Water11/ 24/ 31Supplies- 500-5100-501-52003 46. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 17Monthly 500-5100-501-52003 125. 2021INV0009683Viking Press Checks12/ 09/ 06Laser 500-5100-501-52003 305. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 50Postage11/ 15/ 500-5100-501-52008 62. 2021203137Infosend, Inc Mailing11/ 30/ 64Utility Bill Printing/ 500-5100-501-52008 716. 202107114200Hill Brothers Chemical Co. Orders11/ 09/ 00Ammonia 500-5100-501-52014 916. 2021775731USA Blue Book 00Chlorination10/ 29/ 500-5100-501-52014 352. 2021804991USA Blue Book 24Chlorination11/ 30/ 500-5100-501-52014 417. 2021812503USA Blue Book 96Chlorination12/ 07/ 500-5100-501-52014 642. 2021BPI194941Brenntag Pacific, Inc Orders12/ 14/ 51Chlorine 500-5100-501-52014 1,114. 2021BPI201006Brenntag Pacific, Inc Orders12/ 01/ 84Chlorine 500-5100-501-52014 1,287. 2021BPI205028Brenntag Pacific, Inc Orders12/ 16/ 92Chlorine 500-5100-501-52014 1,150. 2021INV0009642Jim' s Service Center November12/ 03/ 18Vehicle Fuel- 500-5100-501-52015 210. 2021INV0009642Jim' s Service Center November12/ 03/ 60Vehicle Fuel- 500-5100-501-52015 230. 2021INV0009642Jim' s Service Center November12/ 03/ 11Vehicle Fuel- 500-5100-501-52015 233. 2021INV0009642Jim' s Service Center November12/ 03/ 50Vehicle Fuel- 500-5100-501-52015 122. 001Santa Maria Famcon Pipe & Su… 2021S100067893. 12/ 03/ 94repair broken valve on Alamo P… 500-5100-501-53003 1,889. 002Santa Maria Famcon Pipe & Su… 2021S100067893. 12/ 08/ 17repair broken valve on Alamo P… 500-5100-501-53003 308. 2021812278USA Blue Book Maintenance12/ 07/ 39Wells Repair & 500-5100-501-53011 62. 2021Pacific Gas & Electric Company 20210769 12/ 13/ 612/ 13/ 62Acct# 4922450769- 500-5100-501-55005 769. 21Pacific Gas & Electric Company 20214776 12/ 16/ 212/ 16/ 47Acct# 8496674776- 500-5100-501-55005 596. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 730408007414 Water Control Val… 500-5100-501-55005 9. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Rd11/ 17/ 540408007364 Valve Old Mill 500-5100-501-55005 11. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Alisal11/ 17/ 164486137289 146 Rancho 500-5100-501-55005 13. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Reservoir11/ 17/ 160408007428 500-5100-501-55005 38. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 030408007110 Mun Improvement…500-5100-501-55005 15. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 711/ 17/ 290408007241 Water Well # 500-5100-501-55005 3,393. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 411/ 17/ 830408007287 Well # 500-5100-501-55005 2,152. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 311/ 17/ 970408007780 Well # 500-5100-501-55005 1,924. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 460408007323 Pump 75 HP/ Well …500-5100-501-55005 1,207. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 666977181775 Booster Station 70…500-5100-501-55005 877. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 350408007810 Pump (175 Alisal) 500-5100-501-55005 731. 21S. Y.R.W.C.D. ID #1 20215001 11/ 30/ 11/ 30/ 1911/ 30/ 2021-1890 Old Mill Rd. 500-5100-501-55010 14,158. 21S. Y.R.W.C.D. ID #1 20217501 11/ 30/ 11/ 30/ 6211/ 30/ 2021-Alamo Pintado Rd. 500-5100-501-55010 1,767. 20 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 9 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 22S. Y.R.W.C.D. ID #1 2021QTR 21/ 12/ 01/ 83DWR/ CCWA Variable- 11/ 01/ 21…500-5100-501-55011 34,851. 11102021County of Santa Barbara 2021CS- 11/ 10/ 002021- 2022 Cloud Seeding Progr…500-5100-501-57003 2,290. 2021109073AFGL Environmental, Inc. fees08/ 26/ 00Lab 500-5100-501-57010 402. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 02Lease 500-5100-501-57011 116. 2021234506Richards, Watson & Gershon A … 11/ 12/ 50Legal Services- Water Rights Mat…500-5100-501-57012 8,752. 20211200387476HDR Engineering, Inc. Study11/ 05/ 43Water/ Wastewater Fee 500-5100-501-57024 1,421. 20211200392725HDR Engineering, Inc. Study12/ 02/ 00Water/ Wastewater Fee 500-5100-501-57024 5,373. 06Claris Strategy, Inc. 202126210100. 12/ 07/ 00Water - Emergency Response Pl…500-5100-501-57024 3,750. 20211120210689Underground Service Alert of S… Tickets12/ 01/ 2518 New 500-5100-501-57028 33. 2021dsb20206196Underground Service Alert of S… Fee12/ 01/ 97Dig Safe Board 500-5100-501-57028 2. 358654Tyler Technologies, Inc 2021025- Maintenance12/ 01/ 00Utility Billing - 500-5100-501-57064 20. 361773Tyler Technologies, Inc 2021025- Maintenance12/ 29/ 00Utility Billing- 500-5100-501-57064 20. 21Comcast 20210775 11/ 15/ 93975077511/ 24/ 88Acct# 500-5100-501-57064 47. 21Comcast 20210775 12/ 15/ 93975077512/ 15/ 88Acct# 500-5100-501-57064 47. 2021Frontier Communications 20211425 11/ 13/ 511/ 13/ 35Acct# 805-686-1425-080105- 500-5100-501-57064 165. 2021Frontier Communications 20211425 12/ 13/ 512/ 13/ 35ACCT# 805-686-1425-080105- 500-5100-501-57064 165. 202153276LanspeedJuly12/ 01/ 46It Support/ Monthly Billing - 500-5100-501-57064 511. 2021Frontier Communications 20215575 11/ 13/ 511/ 13/ 64Acc# 805-688-5575-062171- 500-5100-501-57064 7. 2021Frontier Communications 20215575 12/ 13/ 512/ 13/ 64Acc# 805-688-5575-062171- 500-5100-501-57064 7. 2021Comcast 20215898 11/ 28/ 012589811/ 28/ 36Acct# 8155 70 005 500-5100-501-57064 10. 20219893198967Verizon Wireless Services, LLC Cote11/ 30/ 32805- 588-6825 Keith 500-5100-501-57064 0. 20219893198967Verizon Wireless Services, LLC 211/ 30/ 01805- 350-8659 Water iPad # 500-5100-501-57064 38. 20219893198967Verizon Wireless Services, LLC 111/ 30/ 01805- 350-8659 Water iPad # 500-5100-501-57064 38. 20219893198967Verizon Wireless Services, LLC Mathews11/ 30/ 80805- 588-4424 Mike 500-5100-501-57064 32. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 17805- 588-4659 Water On-Call Ph…500-5100-501-57064 0. 20219893198967Verizon Wireless Services, LLC 11/ 30/ 17805- 245-6580 Water/ SCADA Dia…500-5100-501-57064 61. 20219893198967Verizon Wireless Services, LLC Guynn11/ 30/ 18805- 588-5645 Andrew 500-5100-501-57064 8. 20219893198967Verizon Wireless Services, LLC 311/ 30/ 01805- 325-8264 Water iPad # 500-5100-501-57064 38. 20219893198967Verizon Wireless Services, LLC 048611/ 30/ 58Cody Kephart- 805-325- 500-5100-501-57064 2. 0216981State Water Resources Control … 2021SW- 12/ 03/ 00Annual Permit Fee- 07/ 01/ 21-0…500-5100-501-61009 7,067. 0087AutoSys, LLC 2021INV- Well2212/ 14/ 36New UPS at 500-5100-501-70851 1,528. 28GSI Water Solutions, Inc. 202100662. 001. 311/ 30/ 00GSI River Wells Amendment 500-5100-501-70852 7,195. 26GSI Water Solutions, Inc. 20210662. 001. 311/ 24/ 50GSI River Wells Amendment 500-5100-501-70852 4,172. 27GSI Water Solutions, Inc. 20210662. 001. 311/ 29/ 50GSI River Wells Amendment 500-5100-501-70852 30,952. 20214334Meridian Consultants LLC 11/ 30/ 50Meridian R Wells EIR Addendum…500-5100-501-70852 4,942. 20214377Meridian Consultants LLC 11/ 30/ 00Meridian R Wells EIR Addendum…500-5100-501-70852 11,215. 2021INV0009671Kurt Jonas Program12/ 07/ 00Landscape Rebate 500-5100-501-70938 1,500. 2021JC1611x1NovSunbeam Solar Technologies, In… 12/ 14/ 60Fredensborg Canyon Waterline …803-5100-501-70105 3,653.

Department 5100 - Water Total: 170,245.60
Department: 5200 - Sanitary Sewer
2021135852Advantage Group, The October10/ 31/ 42Admin Flex Fees- 501-5200-105-51005 13. 2021136832Advantage Group, The 12/ 13/ 42Annual Renewal/ Admin Flex Fee…501-5200-105-51005 38. 2021INV0009687Advantage Group, The 12/ 22/ 68Retiree Health Reimb. 501-5200-105-51005 475. 2021INV0009708Nickolas Rivera payment12/ 30/ 25Reissue payroll 501-5200-502-51000 8. 2021115630Western Aeromedical Consorti… Rivera12/ 15/ 00Employee Exam- Nickolas 501-5200-502-51009 72. 1Procare Janitorial Supply, Inc 2021146551- WWTP12/ 10/ 17Supplies- 501-5200-502-52003 429. 2021147372Procare Janitorial Supply, Inc WWTP12/ 03/ 75Supplies- 501-5200-502-52003 195. 2021147616Procare Janitorial Supply, Inc WWTP12/ 10/ 96Supplies- 501-5200-502-52003 35. 20212673DellaValle Embroidery WWTP12/ 08/ 00Supplies- 501-5200-502-52003 90. 20213492231985Staples Advantage WWTP11/ 01/ 27Supplies- 501-5200-502-52003 99. 20213495005885Staples Advantage WWTP12/ 08/ 99Supplies- 501-5200-502-52003 50. 20213495005886Staples Advantage WWTP12/ 08/ 04Supplies- 501-5200-502-52003 37. 2021INV0009683Viking Press Checks12/ 09/ 05Laser 501-5200-502-52003 305. 2021INV0009642Jim' s Service Center November12/ 03/ 90Vehicle Fuel- 501-5200-502-52015 60. 202112250Nielsen Building Material WWTP12/ 08/ 03Repairs & Maintenance- 501-5200-502-53003 42. 202123845Scott Reardon' s Locksmith Servi… Water11/ 29/ 51Repairs & Maintenance- 501-5200-502-53003 29. 202132169Advanced Automotive Solutions… 12/ 22/ 95Vehicle Repairs & Maintenance-…501-5200-502-53008 56. 2021Pacific Gas & Electric Company 20217582 11/ 17/ 11/ 17/ 670408007719 Sewage lift station…501-5200-502-55001 149. 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 93Lease 501-5200-502-57011 51. 20211200387476HDR Engineering, Inc. Study11/ 05/ 33Water/ Wastewater Fee 501-5200-502-57024 1,624. 21 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 10 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 20211200392725HDR Engineering, Inc. Study12/ 02/ 00Water/ Wastewater Fee 501-5200-502-57024 6,140. 20211120210689Underground Service Alert of S… Tickets12/ 01/ 2518 New 501-5200-502-57028 34. 2021dsb20206196Underground Service Alert of S… Fee12/ 01/ 06Dig Safe Board 501-5200-502-57028 3. 358654Tyler Technologies, Inc 2021025- Maintenance12/ 01/ 00Utility Billing - 501-5200-502-57064 20. 361773Tyler Technologies, Inc 2021025- Maintenance12/ 29/ 00Utility Billing- 501-5200-502-57064 20. 21Comcast 20210775 11/ 15/ 93975077511/ 24/ 13Acct# 501-5200-502-57064 18. 21Comcast 20210775 12/ 15/ 93975077512/ 15/ 13Acct# 501-5200-502-57064 18. 202153276LanspeedJuly12/ 01/ 70It Support/ Monthly Billing - 501-5200-502-57064 193. 2021Frontier Communications 20215575 11/ 13/ 511/ 13/ 89Acc# 805-688-5575-062171- 501-5200-502-57064 2. 2021Frontier Communications 20215575 12/ 13/ 512/ 13/ 89Acc# 805-688-5575-062171- 501-5200-502-57064 2. 2021Comcast 20215898 11/ 28/ 012589811/ 28/ 92Acct# 8155 70 005 501-5200-502-57064 3. 2021Frontier Communications 20217459 11/ 25/ 511/ 25/ 92Acct# 805-688-7459-060995- 501-5200-502-57064 84. 2021Frontier Communications 20217459 12/ 25/ 512/ 25/ 00ACCT# 805-688-7459-060995- 501-5200-502-57064 85. 20219893198967Verizon Wireless Services, LLC Matsukas11/ 30/ 06805- 757-2137 Paul 501-5200-502-57064 0. 20219893198967Verizon Wireless Services, LLC Call11/ 30/ 58805- 325-9056 -WWTP On 501-5200-502-57064 11. 20219893198967Verizon Wireless Services, LLC Holly11/ 30/ 05805- 588-2568 Trevor 501-5200-502-57064 0. 20219893198967Verizon Wireless Services, LLC iPad11/ 30/ 62805- 325-8482 WWTP 501-5200-502-57064 18. 20219893198967Verizon Wireless Services, LLC Rivera11/ 30/ 48805- 588-1898 Nick 501-5200-502-57064 0. 20219893198967Verizon Wireless Services, LLC Giacinto11/ 30/ 13805- 588-4664 Nathan 501-5200-502-57064 5. 20219893198967Verizon Wireless Services, LLC iPad11/ 30/ 01805- 245-1207 Sewer 501-5200-502-57064 38. 20219893198967Verizon Wireless Services, LLC Morss11/ 30/ 09805- 588-5943 Jeff 501-5200-502-57064 0. 0191597State Water Resources Control … 2021WD- Fee12/ 13/ 00Annual Permit 501-5200-502-61009 3,326.

Department 5200 - Sanitary Sewer Total: 13,893.23
Department: 5300 - WasteWater
2021135852Advantage Group, The October10/ 31/ 63Admin Flex Fees- 501-5300-105-51005 13. 2021136832Advantage Group, The 12/ 13/ 03Annual Renewal/ Admin Flex Fee…501-5300-105-51005 39. 2021INV0009687Advantage Group, The 12/ 22/ 42Retiree Health Reimb. 501-5300-105-51005 476. 2021INV0009708Nickolas Rivera payment12/ 30/ 75Reissue payroll 501-5300-503-51000 46. 202111K0018038034ReadyRefresh by Nestle Water11/ 26/ 41Supplies- 501-5300-503-52003 140. 2021772741USA Blue Book WWTP10/ 27/ 22Supplies- 501-5300-503-52003 218. 2021816938USA Blue Book WWTP12/ 10/ 14Supplies- 501-5300-503-52003 215. 2021I0588136Atco International WWTP11/ 18/ 51Supplies- 501-5300-503-52003 309. 2021Quadlent Finance USA, Inc. 20211265 11/ 15/ 50Postage11/ 15/ 501-5300-503-52008 62. 2021203137Infosend, Inc Mailing11/ 30/ 65Utility Bill Printing/ 501-5300-503-52008 716. 2021200307285Tractor Supply Credit Plan Equipment11/ 29/ 48Small 501-5300-503-52009 48. 2021757702USA Blue Book WWTP10/ 13/ 71Small Equipment- 501-5300-503-52009 187. 2021INV0009642Jim' s Service Center November12/ 03/ 90Vehicle Fuel- 501-5300-503-52015 60. 2021INV0009642Jim' s Service Center November12/ 03/ 28Vehicle Fuel- 501-5300-503-52015 109. 2021185Max Adams 11/ 15/ 00New Stainless Hatch hinge mete…501-5300-503-53003 5,480. 2021530013Fence Factory 12/ 06/ 00New Gate to access new WWTP…501-5300-503-53003 3,450. 2021775945USA Blue Book WWTP10/ 29/ 76Repairs & Maintenance- 501-5300-503-53003 216. 20219110842979Grainger WWTP11/ 05/ 19Repairs & Maintenance- 501-5300-503-53003 115. 2021INV0009638Santa Ynez Valley Hardware Billing11/ 30/ 22Monthly 501-5300-503-53003 181. 202132169Advanced Automotive Solutions… 12/ 22/ 94Vehicle Repairs & Maintenance-…501-5300-503-53008 56. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Fjord11/ 17/ 060408007614 501-5300-503-55001 1,719. 2021Pacific Gas & Electric Company 20217582 11/ 17/ Plant11/ 17/ 55402220705 Waste Str 501-5300-503-55001 10,436. 20212017243Oilfield Environmental & Compl… 2211/ 18/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 224. 20212105952Oilfield Environmental & Compl… 2210/ 06/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212105960Oilfield Environmental & Compl… 2211/ 17/ 84Blanket PO for lab Fees 21/ 501-5300-503-57010 2,021. 20212106151Oilfield Environmental & Compl… 2211/ 17/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212106528Oilfield Environmental & Compl… 2211/ 17/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 224. 20212106713Oilfield Environmental & Compl… 2211/ 17/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212106889Oilfield Environmental & Compl… 2211/ 18/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212107062Oilfield Environmental & Compl… 2211/ 18/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212107066Oilfield Environmental & Compl… 2211/ 18/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 519. 20212107244Oilfield Environmental & Compl… 2211/ 18/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212107420Oilfield Environmental & Compl… 2212/ 13/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212107591Oilfield Environmental & Compl… 2212/ 16/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212107757Oilfield Environmental & Compl… 2212/ 16/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 20212107884Oilfield Environmental & Compl… 2212/ 16/ 00Blanket PO for lab Fees 21/ 501-5300-503-57010 269. 22 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 11 of 15
NumberVendor Name DatePayablePost AmountDescription ( Item) Account Number 2021N9168541Quadient Leasing USA, Inc. Payments12/ 06/ 91Lease 501-5300-503-57011 107. 20211AX00066Engel & Gray 10/ 31/ 29Blanket PO for Sludge Disposal … 501-5300-503-57020 2,297. 20211B700011Engel & Gray 11/ 07/ 16Blanket PO for Sludge Disposal … 501-5300-503-57020 1,158. 20211BE00009Engel & Gray 11/ 14/ 47Blanket PO for Sludge Disposal … 501-5300-503-57020 1,777. 20211BL00009Engel & Gray 11/ 21/ 23Blanket PO for Sludge Disposal … 501-5300-503-57020 1,709. 20211BS00009Engel & Gray 11/ 28/ 19Blanket PO for Sludge Disposal … 501-5300-503-57020 581. 20211C500013Engel & Gray 12/ 15/ 81Blanket PO for Sludge Disposal … 501-5300-503-57020 1,821. 20211200387476HDR Engineering, Inc. Study11/ 05/ 81Water/ Wastewater Fee 501-5300-503-57024 507. 20211200392725HDR Engineering, Inc. Study12/ 02/ 50Water/ Wastewater Fee 501-5300-503-57024 1,919. 21Comcast 20210775 11/ 15/ 93975077511/ 24/ 50Acct# 501-5300-503-57064 39. 21Comcast 20210775 12/ 15/ 93975077512/ 15/ 50Acct# 501-5300-503-57064 39. 2021Frontier Communications 202111/ 19/ 511/ 19/ 48Acct# 805-688-6997-072877- 501-5300-503-57064 329. 20211173Kiza, Inc. 11/ 06/ 00Monthly Internet Services- 501-5300-503-57064 300. 2021Frontier Communications 20212900 11/ 28/ 511/ 28/ 89Acct# 805-688-2900-110481- 501-5300-503-57064 71. 2021Frontier Communications 20212900 12/ 28/ 512/ 28/ 90ACCT# 805-688-2900-110481- 501-5300-503-57064 71. 202153276LanspeedJuly12/ 01/ 94It Support/ Monthly Billing - 501-5300-503-57064 421. 2021Frontier Communications 20215575 11/ 13/ 511/ 13/ 30Acc# 805-688-5575-062171- 501-5300-503-57064 6. 2021Frontier Communications 20215575 12/ 13/ 512/ 13/ 30Acc# 805-688-5575-062171- 501-5300-503-57064 6. 2021Comcast 20215898 11/ 28/ 012589811/ 28/ 54Acct# 8155 70 005 501-5300-503-57064 8. 2021Frontier Communications 20216997 12/ 19/ 512/ 19/ 46ACCT# 805-688-6997-072877- 501-5300-503-57064 325. 20219893198967Verizon Wireless Services, LLC Mathews11/ 30/ 65805- 588-4424 Mike 501-5300-503-57064 3. 20219893198967Verizon Wireless Services, LLC Holly11/ 30/ 50805- 588-2568 Trevor 501-5300-503-57064 0. 20219893198967Verizon Wireless Services, LLC Morss11/ 30/ 76805- 588-5943 Jeff 501-5300-503-57064 0. 20219893198967Verizon Wireless Services, LLC Matsukas11/ 30/ 11805- 757-2137 Paul 501-5300-503-57064 0. 20219893198967Verizon Wireless Services, LLC Rivera11/ 30/ 05805- 588-1898 Nick 501-5300-503-57064 0. 20219893198967Verizon Wireless Services, LLC Giacinto11/ 30/ 80805- 588-4664 Nathan 501-5300-503-57064 28. 20219893198967Verizon Wireless Services, LLC iPad11/ 30/ 39805- 325-8482 WWTP 501-5300-503-57064 19. 20219893198967Verizon Wireless Services, LLC Call11/ 30/ 06805- 325-9056 -WWTP On 501-5300-503-57064 12. 0192412State Water Resources Control … 2021WD- Fee12/ 14/ 00Annual Permit 501-5300-503-61009 23,783. 202178361Cannon Associates Wastewater11/ 08/ 00Projects- 804-5300-503-70105 1,528. 202178818MNS Engineers, Inc. 10/ 08/ 50WWTP Aeration Replacement - … 804-5300-503-70105 7,492. 202178836MNS Engineers, Inc. 10/ 13/ 00WWTP Aeration Replacement - … 804-5300-503-70105 9,110. 202179170MNS Engineers, Inc. 10/ 31/ 00WWTP Aeration Replacement - … 804-5300-503-70105 2,934. 20218Cushman Contracting Corp. 12/ 10/ 92WWTP Aeration System Replac… 804-5300-503-70105 149,447. 2021FB16698Carollo Engineers, Inc 11/ 10/ 49WWTP Water Quality Project - … 804-5300-503-70105 4,143.

Department 5300 - WasteWater Total: 241,984.60
Grand Total: 2,722,151.29
23 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 12 of 15
Report Summary
Fund Summary
AmountFundPayment
100 - GENERAL FUND 814,622.26
205 - SKYTT MESA LLMD 21,430.43
300 - CAPITAL PROJECTS FUND 1,268,360.41
500 - WATER FUND 166,592.00
501 - WASTEWATER FUND 81,221.92
502 - TRANSIT FUND 146,077.76
700 - SYV - TOURISM BUS IMP DIST 45,537.00
803 - WATER CAPITAL PROJECTS 3,653.60
804 - WWTP CAPITAL PROJECTS 174,655.91
29Grand Total: 2,722,151.

Account Summary
AmountAccount Number Account Name Payment
100-1000-100-57014 Muni Code Codification 4,528.40
100-1000-100-57015 Printing and Publishing 172.15
100-1000-100-57016 Professional Services 3,198.75
100-1000-100-58001 City Hospitality 500.00
100-1000-100-63002 Audio/ Video System R/ M 3,655.00
100-1000-130-56004 Mental Health Assmt Team 2,506.00
100-1000-130-56006 Law Enforcement Contract 358,604.00
100-1100-105-51005 Retiree Medical/ Dental/ Li… 6,690.15 100-1100-120-43021 Accts Payable Discounts - 14.18
100-1100-120-51010 Employee Screening 96.60
100-1100-120-51012 Education 515.00
100-1100-120-52002 Membership Dues 368.00
100-1100-120-52003 Supplies 2,105.75
100-1100-120-52008 Postage 200.00
100-1100-120-54002 Equipment 798.00
100-1100-120-57011 Lease Payments 160.65
100-1100-120-57012 Legal Fees 12,089.06
100-1100-120-57016 Professional Services 10,023.90
100-1100-120-57052 Temporary Agency Servic… 24,524.00
100-1100-120-60006 EOC Phone 42.75
100-1100-121-57064 IT Expenses 9,589.88
100-1200-200-52008 Postage 25.00
100-1200-200-57007 General Plan 50,320.73
100-1200-200-57011 Lease Payments 51.93
100-1200-200-57012 Legal Fees 4,387.50
100-1200-200-57016 Professional Services 18,286.99
100-1200-201-57063 Code Enforcement 1,982.50
100-1200-210-52008 Postage 25.00
100-1200-210-57011 Lease Payments 21.91
100-1200-210-57016 Professional Services 26,421.40
100-1300-300-52008 Postage 25.00
100-1300-300-57011 Lease Payments 68.96
100-1300-350-52003 Supplies 135.95
100-1300-350-52008 Postage 50.00
100-1300-350-57011 Lease Payments 52.74
100-1300-350-57015 Printing and Publishing 175.32
100-1300-350-57016 Professional Services 1,231.50
100-1300-365-52005 Recreation Programs 960.40
100-1300-375-52005 Recreation Programs 321.96
100-1400-400-43020 TBID - Admin. Reimburse…- 910.74
100-1400-400-57029 Village Planter Maint. 2,400.00
100-1400-400-59010 Tourism/ Marketing Expen… 153,222.48 100-16002 REIMBURSEABLE A/ P PA… 7,905.75
100-1600-300-51014 Safety Gear 77.95
24 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 13 of 15
Account Summary
AmountAccount Number Account Name Payment
100-1600-300-52015 Vehicle Fuel 474.82
100-1600-310-53003 Repairs and Maintenance 850.05
100-1600-310-55001 Utilities 59.51
100-1600-310-57057 Pest Management 300.00
100-1600-320-52003 Supplies 2,497.64
100-1600-320-53003 Repairs and Maintenance 981.55
100-1600-320-55001 Utilities 94.91
100-1600-320-57023 Tree Maintenance 300.00
100-1600-330-52003 Supplies 822.46
100-1600-330-53003 Repairs and Maintenance 103.36
100-1600-330-55001 Utilities 49.59
100-1600-330-55002 Water and Sewer Charges 1,670.55
100-1600-330-57057 Pest Management 385.00
100-1600-340-55001 Utilities 12.76
100-1600-400-57005 Custodial- Restrooms 35,084.00
100-1600-600-52008 Postage 25.00
100-1600-600-57011 Lease Payments 20.28
100-1600-600-57016 Professional Services 4,096.00
100-1600-605-52008 Postage 25.00
100-1600-605-53003 Repairs and Maintenance 422.33
100-1600-605-57011 Lease Payments 38.13
100-1600-610-52003 Supplies 496.22
100-1600-610-53003 Repairs and Maintenance 21.01
100-1600-610-55001 Utilities 514.48
100-1600-610-57057 Pest Management 200.00
100-1600-620-52003 Supplies 86.12
100-1600-620-53003 Repairs and Maintenance 5,787.40
100-1600-620-55001 Utilities 566.47
100-1600-630-52003 Supplies 189.48
100-1600-630-53003 Repairs and Maintenance 1,159.00
100-1600-630-55001 Utilities 434.51
100-1600-650-55001 Utilities 60.10
100-1600-670-52003 Supplies 2,288.31
100-1600-670-55001 Utilities 329.27
100-1600-680-52003 Supplies 2,032.63
100-1600-680-53003 Repairs and Maintenance 323.68
100-1600-680-55001 Utilities 316.20
100-1600-690-52003 Supplies 1,153.03
100-1600-690-52015 Vehicle Fuel 349.33
100-1600-690-53003 Repairs and Maintenance 118.81
100-1600-690-53007 Highway Entrance Signs 474.71
100-1600-690-55006 Street Light Power 5,634.06
100-1600-690-57011 Lease Payments 77.08
100-1600-690-70105 Projects 2,565.00
100-1600-700-52012 Tree Lights 2,327.73
100-1600-700-57011 Lease Payments 16.23
100-1600-710-55001 Utilities 481.39
100-1600-710-57016 Professional Services 942.50
100-1600-720-53003 Repairs and Maintenance 7,600.00
100-1600-720-57011 Lease Payments 27.57
100-1600-720-57016 Professional Services - S… 12,030.00 100-1600-720-57022 Street Sweeping 5,540.80
100-1600-720-57028 Underground Alert 36.22
100-1600-720-70614 Storm Drain Improvements 2,020.00
100-20037 Business Card Payable 2,515.89
205-3500-804-53005 Open Space/ Landscape Mt 20,874.00
205-3500-804-55001 Utilities 556.43
300-1600-600-70105 Projects - GEN FUND 88,748.93
25 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 14 of 15
Account Summary
AmountAccount Number Account Name Payment
300-2100-801-70105 Projects - GAS TAX- RMRA 250,389.62
300-2500-803-70105 Projects - MEASURE A 871,066.85
300-2600-805-70105 Projects - IMPACT FEES 58,155.01
500-5100-105-51005 Retiree Medical/ Dental/ Li… 528.02
500-5100-501-52003 Supplies 1,890.73
500-5100-501-52008 Postage 779.14
500-5100-501-52014 Chlorination 5,881.47
500-5100-501-52015 Vehicle Fuel 796.39
500-5100-501-53003 Repairs and Maintenance 2,198.11
500-5100-501-53011 Well Repairs and Mainten… 62.39
500-5100-501-55005 Power for Pumping 11,741.27
500-5100-501-55010 Purchased Water 15,925.81
500-5100-501-55011 State Water Payments 34,851.83
500-5100-501-57003 Cloud Seeding Program 2,290.00
500-5100-501-57010 Lab Fees 402.00
500-5100-501-57011 Lease Payments 116.02
500-5100-501-57012 Legal Fees 8,752.50
500-5100-501-57024 Studies 10,544.43
500-5100-501-57028 Underground Alert 36.22
500-5100-501-57064 IT Expenses - Water Fund 1,222.81
500-5100-501-61009 Permit Fees 7,067.00
500-5100-501-70851 SCADA Upgrades 1,528.36
500-5100-501-70852 River Well Development 58,477.50
500-5100-501-70938 Water Conservation Progr… 1,500.00
501-5200-105-51005 Retiree Medical/ Dental/ Li… 527.52
501-5200-502-51000 Salaries 8.25
501-5200-502-51009 Employee Medical Exams 72.00
501-5200-502-52003 Supplies 1,243.23
501-5200-502-52015 Vehicle Fuel 60.90
501-5200-502-53003 Repairs and Maintenance 71.54
501-5200-502-53008 Vehicle Repairs & Maint. 56.95
501-5200-502-55001 Utilities 149.67
501-5200-502-57011 Lease Payments 51.93
501-5200-502-57024 Studies 7,764.33
501-5200-502-57028 Underground Alert 37.31
501-5200-502-57064 IT Expenses - Sewer 523.60
501-5200-502-61009 Permit Fees 3,326.00
501-5300-105-51005 Retiree Medical/ Dental/ Li… 529.08
501-5300-503-51000 Salaries 46.75
501-5300-503-52003 Supplies 883.28
501-5300-503-52008 Postage 779.15
501-5300-503-52009 Small Equipment 236.19
501-5300-503-52015 Vehicle Fuel 170.18
501-5300-503-53003 Repairs and Maintenance 9,443.17
501-5300-503-53008 Vehicle Repairs & Maint. 56.94
501-5300-503-55001 Utilities 12,155.61
501-5300-503-57010 Lab Fees 5,678.84
501-5300-503-57011 Lease Payments 107.91
501-5300-503-57020 Sludge Disposal 9,345.15
501-5300-503-57024 Studies 2,427.31
501-5300-503-57064 IT Expenses - WWTP 1,686.13
501-5300-503-61009 Permit Fees 23,783.00
502-5000-850-35021 Fare Box Revenue - 6,943.69
502-5000-850-52002 Membership Dues 560.00
502-5000-850-52015 Vehicle Fuel 16,732.57
502-5000-850-55003 Communications 210.00
502-5000-850-56003 Wine Country Express 1,666.66
502-5000-850-56010 Transit Contract 110,408.09
26 Expense Approval Report Payment Dates: 12/ 1/ 2021 - 12/ 31/ 2021 1/ 4/ 2022 4: 17: 34 PM Page 15 of 15
Account Summary
AmountAccount Number Account Name Payment
502-5000-850-57001 Marketing & Advertising 11,316.20
502-5000-850-57011 Lease Payments 545.00
502-5000-850-57015 Printing and Publishing 1,242.93
502-5000-850-57016 Professional Services 10,340.00
700-1400-400-59016 SYVTBID Payments 44,626.26
700-1400-400-61003 City Admin Fee 910.74
803-5100-501-70105 Projects - WATER 3,653.60
804-5300-503-70105 Projects - WASTEWATER 174,655.91
Grand Total: 2,722,151.29
Project Account Summary
AmountProject Account Key Payment
None** 2,657,037.81
City 170.41
Dist 64,943.07
Grand Total: 2,722,151.29
27 Agenda Item Number: 4d
Solvang City Council STAFF REPORT
PREPARED BY: Xenia Bradford, City Manager
MEETING DATE: January 10, 2022
SUBJECT: ADOPT RESOLUTION NO. 22-1155, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SOLVANG, CALIFORNIA

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF
THE CITY COUNCIL.

RECOMMENDATION:

Adopt Resolution No. 22-1155 to allow for continued remote attendance to teleconferenced meetings of the City Council.

SUMMARY:

On September 16, 2021, Governor Newsom signed Assembly Bill 361 (AB 361), which modified the Brown Act to provide that a legislative body subject to the Brown Act may continue to meet under modified teleconferencing rules if the meeting occurred during a proclaimed state of emergency and state or local officials had imposed or recommended measures to promote social distancing.

On September 28, 2021, the Santa Barbara County Health Department recommended that measures be implemented to promote social distancing, as set forth in a document entitled “ Health Officials AB 361 Social Distance Recommendation”, attached as Exhibit A to the Resolution.

State or local officials have recommended measures to promote social distancing, including the holding of virtual meetings for legislative bodies within the County of Santa Barbara. Therefore, in reconsideration of the circumstances of the State of Emergency declared by Governor Newsom and findings that the State of Emergency still warrants the option of teleconferencing for City Council meetings, it is in the interest of public health and safety, and in response to the local recommendation for measures to promote social distancing, we find necessity in invoking the provisions of AB 361 related to teleconferencing.
28 A meeting of the City Council was conducted virtually, in part, on October 11, 2021, and therefore, the City Council adoption of the Resolution would be in conformity with AB 361.

Staff would return to the City Council no later than thirty ( 30) days after the adoption of the Resolution, or at the next meeting of the City Council if later than thirty (30) days after adoption of the Resolution, for the City Council to consider whether to again make the findings required to meet under the modified teleconference procedures of AB 361.

ALTERNATIVES:

N/A
FISCAL IMPACT:

None.

ATTACHMENTS
Attachment A – Resolution No. 22-1155
29 RESOLUTION NO. 22-1155

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG, CALIFORNIA

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE CITY COUNCIL WHEREAS, on March 4, 2020, Governor Newsom issued a Proclamation of State of Emergency in response to the COVID- 19 pandemic, which Proclamation remains in effect; and
WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29- 20, modifying the teleconferencing rules set forth in the Brown Act, Government Code sections 54950 et seq., subject to compliance with certain requirements; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08- 21, providing that the modifications to the teleconferencing rules under the Brown Act would remain in place through September 30, 2021; and
WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 AB 361), which modified the Brown Act to provide that a legislative body subject to the Brown Act may continue to meet under modified teleconferencing rules if the meeting occurs during a proclaimed state of emergency and state or local officials have imposed or recommended measures to promote social distancing; and WHEREAS, on September 28, 2021, the Santa Barbara County Health Department recommended that measures be implemented to promote social distancing, as set forth in a document entitled “ Health Officials AB 361 Social Distance Recommendation”, attached hereto as Exhibit A and incorporated herein; and WHEREAS, in the interest of public health and safety, and in response to the local recommendation for measures to promote social distancing, the City Council finds it necessary to invoke the provisions of AB 361 related to teleconferencing.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOLVANG DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct and are adopted as findings in support of this Resolution.

SECTION 2. The City Council has reconsidered the circumstances of the State of Emergency declared by Governor Newsom and finds that the State of Emergency still warrants the option of teleconferencing for City Council meetings.

SECTION 3. State or local officials have recommended measures to promote social distancing, including the holding of virtual meetings for legislative bodies within the County of Santa Barbara.

Attachment A
30 SECTION 4. A meeting of the City Council was conducted virtually, in part, on October 11, 2021, and therefore, the City Council adopts this Resolution in conformity with AB 361.

SECTION 5. Staff is directed to return to the City Council no later than thirty ( 30) days after the adoption of this Resolution, or at the next meeting of the City Council if later than thirty (30) days after adoption of this Resolution, for the City Council to consider whether to again make the findings required to meet under the modified teleconference procedures of AB 361.

SECTION 6. This resolution shall be effective immediately upon adoption.

SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and shall cause a certified copy to be filed in the book of original resolutions.

PASSED, APPROVED, AND ADOPTED this 10th day of January 2022.

Charlie Uhrig, Mayor
APPROVED AS TO FORM: ATTEST:

Dave Fleishman, City Attorney Annamarie Porter, City Clerk 31 STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss

CITY OF SOLVANG )
I, Annamarie Porter, City Clerk of the City of Solvang, California do hereby certify that Resolution No. 22-1155 was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 10th day of January 2022, and thereafter signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Annamarie Porter, City Clerk
32 Agenda Item Number: 4.e
Solvang City Council STAFF REPORT
PREPARED BY: Nathan Giacinto, Wastewater Division Supervisor; and Matt van der Linden, Special Projects Director
MEETING DATE: January 10, 2022
SUBJECT: NOTICE OF COMPLETION – WWTP AERIATION SYSTEM REPLACEMENT PROJECT, PW 142
RECOMMENDATION:

Accept the improvements recently completed by Cushman Contracting Corporation for the WWTP Aeriation System Replacement Project, Project Number PW 142, and direct the City Manager to execute and record the Notice of Completion.

SUMMARY:

In late February 2021 the City Council awarded a construction contract to Cushman Contracting Corporation, the lowest responsible bidder, in the amount of $2,829,200 and construction began on March 29, 2021. Construction was scheduled for completion in July 2022. The Project was considered substantially complete on December 13, 2021 several months ahead of schedule.

The Phase 1 aeration system improvements will drastically reduce energy costs with the more modern fine bubble diffusers, high efficiency blowers, and a large bubble mixing system, and will allow for efficient de-nitrification of the wastewater. Utilities Department staff worked diligently to keep change orders to a very low level. The total Project cost including design and construction is $3,016,562. Staff recommends that the City Council accept the improvements, and direct the City Manager to execute and record the Notice of Completion for the WWTP Aeriation System Replacement Project.

DISCUSSION:

Since the 1950’s the City has provided wastewater treatment facilities as a means of protecting receiving waters and compliance with State water discharge permit requirements. The City operates a 1.5 million gallons per day (MGD) WWTP consisting of three sequencing batch reactors SBRs) and an aerobic digester. In August of 2016, the RWQCB notified City staff that as part of 33 our Permit renewal process, discharge limits for nitrogen and ammonia will be added to our Permit. In April 2017 Wastewater staff fine-tuned the process sufficiently to achieve denitrification of the wastewater. However, Prior to de-nitrifying, only two of the three SBR basins were required to handle the total peak wastewater flow. The third unused basin represented available treatment capacity. Unfortunately, as a result of the process adjustments required to de-nitrify, all three SBR basins must now be utilized to achieve de-nitrification. Therefore, a significant portion of the City available treatment capacity has been lost. Phase 1 of the Wastewater Treatment Plant Water Quality Project ( upgrades) includes replacement of the aeration system to very efficiently de-nitrify the wastewater and restore the lost capacity of the Plant.

Drawings and Specifications were prepared by Carollo Engineers during summer- fall 2020, and the project was publicly advertised for bids in early December 2020. In late February 2021 the City Council awarded a construction contract to Cushman Contracting Corporation, the lowest responsible bidder, in the amount of $2,829,200 and construction began on March 29, 2021.

Construction was scheduled for completion in July 2022. Most of the construction management was performed by in-house Utilities Department staff. However, due to the large size of the Project, MNS Engineers and Carollo Engineers were hired to assist City staff with construction management and inspection services.

The scope of work for the WWTP Aeriation System Replacement Project consisted of removal and disposal of existing blowers, silencer, process piping and valves; Removal and disposal of existing aeration mixing headers, pump cans and process piping within existing basins; Reinforced concrete work and structural modifications to equipment gallery; Installation of new compressor, blowers, process piping, fitting and valves; Installation of new large bubble mixing system, fine bubble membrane diffusers, air piping and support systems; Electrical and instrumentation work; and appurtenant work.

The Project was considered substantially complete on December 13, 2021 several months ahead of schedule. The Phase 1 aeration system improvements will drastically reduce energy costs with the more modern fine bubble diffusers, high efficiency blowers, and a large bubble mixing system, and will allow for efficient de-nitrification of the wastewater. Carollo Engineers did a good job on the construction drawings and specifications, and Cushman Contracting Corporation did an excellent job on construction. City staff also worked diligently to keep change orders to a minimum. A summary of all costs associated with the project is listed below:

Project Management ( in-house) $ 0
Engineering- Design Work (Carollo)$ 129,696
Construction Management & Inspection (Carollo & MNS) $ 55,000 Initial Construction Contract $ 2,829,200
Net Change Orders $ 2,666
Total $ 3,016,562
See Attachment A - Project Photos.

Filing of the Notice of Completion formally identifies substantial completion of the project and 34 starts the clock on the warranty period. It also initiates the period of time during which potential lien holders may address any non-payment issues with the contractor. Staff recommends that the City Council accept the improvements, and direct the City Manager to execute and record the Notice of Completion for the WWTP Aeriation System Replacement Project.

FISCAL IMPACT:

There is no fiscal impact with the Notice of Completion. The City’s Fiscal Year 2020-21 Budget included full funding for construction of the WWTP Aeration System Replacement Project.

ATTACHMENTS:

A. Project Photos
B. Notice of Completion
35 Enlargement of Existing Roof Hatches
New Skylights over Enlarged Access Hatches
Attachment A
36 New Compressor Pressure Tank and Control Cabinet
New Compressor
37 New Blower Installation
38 New Blower
39 New Blower and Piping
40 New Aeration System Sensors
New Aeration System Stainless Steel Piping
41 Old Inefficient Aeration System
42 Installlation of New Large Bubble Mixing System
43 Installation of New Fine Bubble Diffusers
44 Testing of New Aeration System
45 Testing of New Aeration System
46 Agenda Item Number: 4.f
Solvang City Council STAFF REPORT
PREPARED BY: Xenia Bradford, City Manager
MEETING DATE: January 10, 2022
SUBJECT: REVIEW AND APPROVE MINOR AMENDMENTS AND

CLARIFICATIONS TO THE PURCHASING POLICY
RECOMMENDATION:

Review and approve minor amendments and clarifications to the purchasing policy.

DISCUSSION:

The purpose of this policy is to provide guidance in obtaining quality supplies, services, vehicles, and equipment required for the proper operation of the City of Solvang and in the most cost effective manner possible. It is recognized the lowest price is not the sole factor in evaluating the cost of purchases.

Service, quality, timeliness, and price are all factors of a satisfactory purchase.

In the event of any conflict between this policy and State law, or City ordinance/ resolution, the more stringent requirement should prevail.

The City Manager is assigned overall purchasing responsibilities for all the departments and divisions of the City. To discharge these responsibilities, the City Manager may designate such other person or persons, as he/she deems necessary to ensure compliance with the laws, rules and regulations governing the purchasing of supplies and equipment.

The Purchasing Policy was last reviewed in October of 2020. This update to the policy makes minor amendments and clarifications to the language of the Purchasing Policy. There are no significant changes proposed. The proposed changes simply clarify the language. Red-lined Purchasing Policy is attached.

ALTERNATIVES:

N/A
FISCAL IMPACT:

N/A

ATTACHMENTS
A- Purchasing Policy 1-1-2022 Update
48 I. INTRODUCTION
The purpose of this policy is to provide guidance in obtaining quality supplies, services, vehicles, and equipment required for the proper operation of the City of Solvang and in the most cost effective manner possible. It is recognized the lowest price is not the sole factor in evaluating the cost of purchases. Service, quality, timeliness, and price are all factors of a satisfactory purchase.

In the event of any conflict between this policy and State law, or City ordinance/resolution, the more stringent requirement should prevail.

II. PURCHASING AND APPROVAL AUTHORITY
A. City Manager
The City Manager is assigned overall purchasing responsibilities for all the departments and divisions of the City. To discharge these responsibilities, the City Manager may designate such other person or persons, as he/she deems necessary to ensure compliance with the laws, rules and regulations governing the purchasing of supplies and equipment.

B. Purchasing Officer
The position of Purchasing Officer shall be specified by the City Manager. The Purchasing Officer shall have the general supervision and responsibility for the purchasing of supplies and equipment and shall utilize resources within the departments to comply with the specified duties.

C. Authority Levels
In order to maintain a continuous supply of goods and services necessary to support the City’s operations, and meet the City’s obligations to the public while adhering to City policies, designated employees shall have the following authority in accordance with the purchasing procedures described in this Purchasing Policy (“Policy”):

Position Up to Amount Other
City Manager
100,000
City Council must
approve all contracts
for services or
pPurchases of goods
100,000 or greater
Purchasing Officer
35,000
Department Heads
10,000
Supervisors
1,000
Staff
500
Attachment A
49 III. ETHICS
City personnel must discharge their duties impartially to assure fair competition for City business by responsible vendors. In addition, they shall conduct themselves in a manner that will create confidence in the integrity of the City’s purchasing operations.

It shall be a breach of ethical standards for City personnel to accept gifts, rebates, kickbacks, personal services, or in any way incur personal gain from any vendor, actual or potential, doing business with the City. For further information see the City of Solvang Ethics Policy.

All vendors will be treated equally and fairly at all times by all personnel, with equal information given to each vendor who participates in the procurement process IV. ENVIRONMENTALLY PREFERABLE PURCHASING
A. Purpose
It is the goal of the City of Solvang to use its purchasing power to extend the City's environmentally friendly practices and for the City to be a responsible environmental leader.

The City of Solvang is a large consumer of goods and services, and the purchasing decisions of our employees and contractors can positively or negatively affect the environment. By including environmental considerations in our procurement decisions, along with our traditional concerns with price, performance, and availability, we will remain fiscally responsible while promoting practices that improve public health and safety, reduce pollution, and conserve natural resources. The purpose of this policy is to establish the framework for a sustainability- based purchasing program for the City.

The areas of responsibility shall include the following practices and procedures, which areoutlined as part ofthis policy toensure compliance with best procurement practices that result in the purchasing of products and services targeted at minimizing impacts on human health and theenvironment.

All City departments shall take every reasonable effort to reduce the amount and toxicity of solid waste they generate, recycle materials recoverable from their operations, and maximize theprocurement of recycled, energy efficient, and non- toxic products
B. “ Green" Initiatives
Institute practices that reduce waste through increased product efficiency and effectiveness.

1. Purchase of products that minimize environmental impacts, including but not limited to, toxic substances, pollution, and hazards to workers and to community safety to the greatest extent practicable.

2. Purchase products that include recycled content, are durable and long lasting, conserve energy, water and natural resources, use agricultural products, fibers and residues, reduce greenhouse gas emissions and other pollutants, use 50 unbleached or chlorine free manufacturing processes, and use wood from sustainable harvested forested or other environmentally friendly substitutes.

C. Sustainability Objectives

1. Minimize environmental impacts such as pollution and use of water, energy and natural resources.

2. Eliminate or reduce toxic substances that create hazards to workers and our community.

3. Protect the City's soil, surface and subterranean waters by minimizing the use of chemicals or other substances known to contaminate soils and water resources through toxicity, bioaccumulation or persistence.

4. Encourage manufacturers and vendors to reduce or eliminate environmental impacts in their production and distribution systems to the extent possible.

5. Serve as a model for purchasing environmentally preferable products and encourage other purchasers in our community to adopt similar goals.

6. Assist in improving the air quality for City residents and visitors by making purchases that minimize emissions of pollutants and particulates.

7. Preserve resources locally and globally through purchasing practices that:

8. Maximize water, energy, and natural resources efficiency;

9. Utilize renewable energy sources;

10. Maximize post-consumer recycled content;

11. Utilize readily recyclable or compostable materials; and

12. Facilitate long-life commodity use through product durability, repair ability, and reuse.

D. Definitions and Standards

1. All products, for which the United States Environmental Protection Agency (EPA) has established minimum recycled content standard guidelines, including but not limited to printing paper, office paper, janitorial supplies, construction, landscaping, and miscellaneous and non• paper office products shall contain the highest post-consumer content practicable, but not less than the minimum recycled content standards established by the U.S. EPA Guidelines.

2. In general, environmentally preferable products and services are those that would have a reduced effect on human health and the environment when compared with competing products and services. More specifically, this comparison should include considerations of all phases of the product's life cycle, including raw materials acquisition, production, manufacturing, packaging, distribution, operation, maintenance and disposal, including potential for reuse or ability to be recycled.

3. In practice, the objective is to purchase products that have reduced environmental impact because of the way they are manufactured, used, transported, stored, packaged and disposed of. It means procuring products that do not harm human health, are less polluting while minimizing waste and maximizing use of bio-based or recycled materials, that conserve energy, water and natural resources, and reduce the consumption and/or disposal of hazardous materials. When determining whether a product is environmentally preferable, the following standards, at a minimum, should be considered:
a. Bio-based
b. Bio Degradable
51 c. Carcinogen- free
d. Bio-accumulative toxic (PBT) free
e. Chlorofluorocarbon ( CFC) free
f. Heavy metal free (i.e. no lead, mercury, cadmium)
g. Low volatile organic compound (VOC) free
h. Made from renewable materials
i. Compostable
j. Low toxicity
k. Recycled content or is reusable
l. Reduced packaging, refurbished
m. Greenhouse gas emission
n. Energy, resource and water efficient
E. Responsibilities
The Purchasing staff shall:

1. Work with other governmental purchasing groups and agencies such as, but not limited to, U.S. Communities, National Institute of Governmental Purchasing NIGP), California Association of Public Procurement Officers ( CAPPO), and the Environmentally Preferable Purchasing ( EPP) Department of the EPA to determinate appropriate standards for green purchasing.

2. Work with requesting departments to specify environmentally friendly products manufactured from recycled materials or energy efficient products whenever possible.

3. Utilize, when applicable, cooperative green purchasing agreements from other public agencies and from purchasing consortiums, including but not limited to, U.S. Communities, the National Intergovernmental Purchasing Alliance (NIPA), the National Joint Powers Alliance ( NJPA), the Western States Contracting Alliance WSCA), National Purchasing Powers ( NPP), and California Multiple Award Schedule ( CMAS), to reduce the cost of impact of purchasing environmentally friendly products.

4. Establish Price Agreements for green products and inform City departments of their availability.

5. Evaluate green product alternatives where appropriate. The evaluation should include the consideration of total life cycle costs anticipated for the entire time period that a product is owned, including but not limited to, acquisition, extended warranties, operations, supplies, maintenance, energy costs, disposal costs and the expected lifetime of a product, as compared to other alternatives. Green considerations for evaluation include:
a. The durability of the products, if it is long lasting, reusable or refillable. b. If there is a " take back" or " trade in" program for electronic equipment, computers, monitors, printers, or copiers for reuse or environmentally safe recycling at the end of the product life cycle.
52 c. If product packaging is environmentally friendly and can be reused or recycled.

City Departments shall:

Be responsible for ensuring that their respective employees, contractors, and vendors are fully aware and supportive of the City's initiative to purchase environmentally preferable goods and services. To this end, departments shall be responsible to exercise due diligence in their procurement decisions as well as procurements made by their contractors and consultants, promoting the purchase and use of environmentally preferable products whenever cost effective, and to the extent practicable for all work completed on behalf of the City of Solvang.

F. Preferred Products

1. Recycled Materials. A maximum effort shall be made, whenever possible, to purchase products manufactured from recycled materials.

2. Remanufactured Products. The City shall purchase remanufactured products, such as furniture and equipment, whenever practicable, without reducing safety, quality, or effectiveness.

3. Non-Toxic Chemicals and Sprays. A maximum effort will be made to reduce or eliminate the use of toxic sprays or chemicals at all City facilities whenever possible.

4. Energy and Water Conserving Equipment. When applicable, energy-efficient equipment shall be purchased that is equipped with the most up-to-date energy efficiency functions available at the time of procurement. This shall include, but is not limited to, high efficiency space heating systems, high efficiency space cooling systems, and appliances.

5. Energy Star Designation. Energy Star is a labeling program derived from a partnership between the EPA and the U.S. Department of Energy ( DOE). All products displaying the Energy Star label meet Federal Energy Management Program (FEMP) standards. Typically, this means that labeled products are in the top twenty-five percent of all similar products when ranked by energy efficiency, and utilize twenty-five to fifty percent less energy than traditional counterparts.

G. Contracted Landscaping Services

1. Contractors providing landscaping services to the City shall be encouraged to employ sustainable landscape management practices whenever possible, including but not limited to, integrated and environmentally friendly pest management, recycling grass clippings, drip irrigation, composting, and procurement of mulch and compost that give preference to those produced from locally (regionally) generated plant debris or food wasteprograms.

2. Plants should be selected to minimize waste and water consumption by choosing species that are appropriate to the climate they are to be placed in, 53 can grow to their natural size in the space allotted them, and use perennials rather than annuals for color. Native and drought-tolerant plants that require no or minimal watering, once established, shall be preferred.

3. Hard-scapes and landscape structures constructed of either recycled or biodegradable materials are encouraged.

H. Elimination or Reduction of Toxic Substances and Pollutants

1. To the extent practicable, no cleaning or disinfecting products ( i.e. for janitorial, maintenance, or cleaning use) shall contain ingredients that are carcinogens, mutagens, or teratogens. These include chemicals listed by the EPA or the National Institute for Occupational Safety and Health on the Toxics Release Inventory and those listed under Proposition 65 by California Office of Environmental Health Hazard Assessment.

2. When maintaining buildings, the City shall usethe lowest amount of VOCs, highest recycled content, and low or no formaldehyde when purchasing materials such as paint, carpeting, adhesives, furniture, andcasework.

I. Conservation and Source Reduction
Certain practices and procurement strategies can help prevent waste before it is created. Such practices are suggested whenever practicable and cost-effective, but are not meant to reduce workplace safety or compromise product performance.

Examples include:

1. Electronic communication instead of printed;

2. Double-sided photocopying and printing;

3. Washable and reusable dishes and utensils;

4. Rechargeable batteries;

5. Streamlining and computerizing forms;

6. " On-demand" printing of documents and reports as they areneeded;

7. Leasing long-life products when service agreements support maintenance and repair rather than new purchases;

8. Sharing equipment and occasional useitems;

9. Choosing durable products rather than disposable;

10. Reducing product weight or thickness when effectiveness is not jeopardized in products such as paper and plastic liner bags;

11. Buying in bulk, when storage and operations exist to support it;

12. Reusing products, such as file folders, storage boxes, office supplies, and furnishings, when practicable
V. TYPES OF PURCHASES
For the purpose of this Policy, there are four types of purchases: general purchase of goods, general purchase of services, public works projects and emergency purchases.

Pursuant to Municipal Code Chapter 4-9 Business Certificates, vendors are required to obtain a City of Solvang business certificate if the vendor is conducting business in the 54 City whether or not they are located in the City limits.

New vendors (vendors that have not previously conducted business with the City of Solvang) must provide a copy of their W-9 to Accounts Payable for tax coding purposes.

A. General Purchase of Goods

1. Goods costing up to and including $1,000 (excluding tax, shipping and handling) per vendor, per fiscal year
a. Prudent judgment required.
b. Local purchasing strongly encouraged whenever practical.

2. Goods costing over $1,000 and less than $10,000 per vendor, per fiscal year. a. Prudent judgment required. Requesting two (2) quotes strongly encouraged but optional.
b. Local purchasing strongly encouraged whenever practical. c. A Purchase Order is required prior to purchase being made or work commencing unless otherwise authorized by the City Manager or, Purchasing Officer, or Director of Administrative Services (or as identified in Section XXII C).

3. Goods costing $10,000 and less than $50,000 (excluding tax, shipping and handling) per vendor, per fiscal year
a. Departments are required to solicit three (3) written quotes, evidence of which must be maintained within the department and available upon request of the Purchasing Officer. Bid/Quote guidelines are in Section VI. b. Email, fax or electronic quote submittals areacceptable. c. When goods are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the goods are not standardized or not of uniform quality and the purchase is not awarded to the vendor with the lowest quote an explanation of why, as well as any documentation to backup the decision must be submitted with the purchase requisition. For further information, see Sole Source/Non-Competitive Negotiations, Section XXII.A of this Policy.
d. Create requisition for Department Headapproval.Purchasing Officer or City Manager approval.
e. A Purchase Order is required prior to purchase being made or work commencing unless otherwise authorized by the City Manager or Purchasing Officer (or as identified in Section XXII C).
55 B. Goods costing $50,000 or Greater

1. Goods costing $50,000 or more, per vendor, per fiscal year a. Request City Manager or Purchasing Officer approval to seek bids. b. Formal bidding required. See Section VI, for the Formal Bidding Procedure. c. City Manager authorizes expenditures after bids are received and evaluated for Goods over $ 35,000.
d. City Council authorizes expenditures after bids are received andevaluated for Goods over $100,000.
e. Complete purchase requisition to encumber funds or provide copy of contract to Purchasing Officer.
f. When goods are standardized or of uniform quality, the award will be given to the vendor with the lowest quote and in accordance with the Local Business Preference (Section XVI). If the goods are not standardized or not of uniform quality and the recommendation is that the purchase not be awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to backup the decision must be included in the staff report. For further information, see Sole Source/Non-Competitive Negotiations, Section VI.C of this Policy.
g. A Purchase Order or signed contract is required prior to purchase being made or work commencing unless otherwise authorized by the City Manager or Purchasing Officer.

C. General Purchase of Services

1. Services costing up to and including $1,000 per vendor, per department, per 56 fiscal year
a. Prudent judgment required.
b. Local purchasing strongly encouraged whenever practical.

2. Services costing over $1,000 and less than $10,000, per vendorcontract/ vendor, per department, per fiscal year a. Prudent judgment required. Requesting two (2) quotes is strongly encouraged but optional.
b. Local purchasing strongly encouraged whenever practical. c. Prior to services being performed, the Department Director is to determine if an agreement (contract) is required after evaluating the level of risk based on the location and type of service being performed.
d. If the Department Director determines that an agreement is required, department will use a standard template agreement, located on the City’s Network, unless otherwise approved by the City Attorney. Contact the City Attorney or Risk Manager for agreement questions if needed. e. If the Department Director determines that an agreement is not required, a Purchase Order is required prior topurchase being madeor work commencing, unless otherwise authorized by the City Manager or Purchasing Officer.

3. Services costing $10,000 and less than $35,000 (Excluding tax, shipping and handling) per vendor, per scope of work, per fiscal year a. Request three ( 3) written quotes, evidence of which must be submitted including the request for quote with the purchase requisition. b. Faxed or electronic quote submittals are acceptable. c. When services are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the services are not standardized or not of uniform quality and the agreement is not awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to backup the decision must be submitted with the purchase requisition. For further information, see Sole Source/Non-Competitive Negotiations, Section VI.C of this Policy.
d. All departments will use a standard template agreement, located on the City Network, unless otherwise approved by the City Attorney. e. Contact the City Attorney or Risk Manager for agreement questions if needed.
f. A Purchase order is required prior to purchase being made or work 57 commencing unless otherwise authorized by the City Manager or Purchasing Officer.
58 D. Services Costing $35,000 or Greater

1. Goods costing $35,000 or more, per vendorcontract, per scope of work, per fiscal year
a. Request City Manager or Purchasing Officer approval to seek bids. b. Formal bidding required. See Section VI, for the Formal Bidding Procedure. c. City Manager authorizes expenditures after bids are received andevaluated for Services over $$35,000
d. City Council authorizes expenditures after bids are received andevaluated for Services over $100,000.
e. Complete purchase requisition to encumber funds or provide copy of contract to Purchasing Officer.
f. When goods are standardized or of uniform quality, the award will be given to the vendor with the lowest quote and in accordance with the Local Business Preference (Section XVI). If the goods are not standardized or not of uniform quality and the recommendation is that the purchase not be awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to backup the decision must be included in the staff report. For further information, see Sole Source/Non-Competitive Negotiations, Section VI.C of this Policy.
g. A Purchase Order or signed contract is required prior to purchase being made or work commencing unless otherwise authorized by the City Manager or Purchasing Officer.

2. Services costing $100,000 or more per vendorcontract, per scope of work, per fiscal year
a. Request City Manager or Purchasing Officer approval to seek bids. b. Formal bidding required. See Section VI of this policy for formal bidding procedures.
c. The City Council authorizes expenditures after bids are received and evaluated.
d. Complete purchase requisition to encumber funds or provide copy of contract to Purchasing Officer.
e. When services are standardized or of uniform quality, the award will be given to the vendor with the lowest quote and in accordance with the Local Business Preference (Section XVI). Iftheservices arenot standardized or not of uniform 59 quality and the recommendation is that the purchase not be awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to backup the decision must be included in the staff report. For further information, see Sole Source/Non-Competitive Negotiations, Section XXII.A of this Policy.
60 f. A Purchase Order or signed contract is required prior to purchase being made or work commencing unless otherwise authorized by the City Manager or Purchasing Officer.
g. Contact the City Attorney or Risk Manager for agreement questions if needed.

E. Public Works Projects

1. Public Works projects of $25,000 or less for construction work should follow the applicable sections of this document.

2. Public Projects must be bid in accordance with the California Uniform Public Construction Cost Accounting Act and Solvang Municipal Code Chapter 1-8, Municipal Purchases or Contracts, or the Public Contract Code Section 20162 et seq, depending on the dollar amount.

3. Public Projects must be awarded to the lowest responsible bidder and in accordance with the Local Business Preference, (Section XVI).

4. Public Works Contracts require a purchase order prior to purchase being made or work commencing unless otherwise authorized by the City Manager or Purchasing Officer.

5. Contracts less than $35,000 may be awarded by the City Manager or, or his/her authorized representative.

6.5. Contracts less than $100,000 may be awarded by the City Manager or, or his/her authorized representative.

7.6. A Staff report must be submitted to the City Council for contracts of 100,000 or greater, which includes information regarding the bids received and recommended selection.

F. Emergency Purchases
The City is not required to engage in either informal or formal competitive bidding in an emergency. The City Council delegates to the City Manager the authority to declare the existence of a state of emergency and to waive any procedures in the Purchasing Policy that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services. " Emergency Purchases" are those procurements required toprevent the immediate interruption or cessation of necessary City services or to safeguard life, property or the public health and welfare.

1. Emergency DURING normal business hours
a. The Purchasing Officer or designee shall confirm the declaration of the emergency with the City Manager.
b. Purchasing, as authorized by the Purchasing Officer or designee, shall either issue a purchase order and purchase the required goods and services or 61 authorize the department to do so.
62 2. Emergency AFTER normal business hours
a. City employees shall obtain authorization from the City Manager or the EOC Director before making purchases.
b. If the City Manager is unavailable, contact the following in the order stated for authorization to purchase:

Purchasing Officer
Department Director
c. Any City employee who makes an emergency purchase after normal business hours shall submit receipts to their Department Directorthe following workday.

3. Quoting Requirements in an Emergency
a. In order for the City to contract for construction services in an emergency situation without following the City’s usual procedures, California Public Contract Code Section 22050 must be followed.

4. Reporting Emergency Purchases to Purchasing
a. For every emergency purchase made, the Department Director shall, no later than five days (5) thereafter, submit to Purchasing the Emergency Purchase Documentation Form, listing all expenditures, vendors, where the goods or services were used and include an explanation of the circumstances of the emergency that justified the use of emergency procedures.

5. City Council Ratification
a. The City Council shall be presented with the circumstances giving rise to the emergency purchase at a duly scheduled City Council meeting. The City Council shall ratify the emergency declaration and ratify the emergency purchases.

VI. Formal Bidding Procedure
A. Circumstances Where Formal Bidding is allowed or required.

1. Contracts for purchases of supplies, equipment or services. a. Purchases with a value of less than $50,000 may be made using the formal bidding process if authorized by the Purchasing Officer, in his or her discretion. b. Purchases with an anticipated value of $50,000 or greater must utilize the formal bidding requirements of this section, unless this policy authorizes use of informal bidding or alternative bidding as provided in Sections VI or VII. 63 2. Public Projects.
64 a. Public projects with a value of less than $50,000, appropriations for which have been approved by the City Council, may be performed by the employees of the City or its agencies by force account, or by negotiated contract or purchase order approved by the City Manager.
b. Public projects $50,000 or greater shall be let by the formal bidding procedures in this section unless the City Council authorizes an alternative procedure for awarding the contract prior to the receipt of bids.

3. Rights-of-Way for Public Projects. Acquisition of rights-of-way needed for public projects, including fee interests and temporary and permanent easements, appropriations for which public projects have been approved by the City Council, may be negotiated by the City Manager subject to the provisions of Section XI and subject to City Council approval.

In addition, acquisition of temporary and permanent easements for public projects, which have been approved by the City Council may be negotiated by the Public Works Director/City Engineer subject to the provisions of Section XI and subject to City Manager and City Council approval.

B. Award to Lowest Responsible Bidder.

Unless prior to bid or the receipt of bids, the City Council authorizes the award of the contract to someone other than the lowest responsible bidder, a contract awarded using the formal bidding procedures of this section, shall be awarded to the lowest responsible bidder, or thenext lowest responsible bidder iftheinitial low bidder refuses to execute the contract.

C. Procedural Requirements.

The formal bidding procedures are as follows:

1. The Purchasing Officer or designee shall issue a notice inviting bids using one or more methods designed to provide reasonable public notice ina manner which will permit the bid information to be disseminated widely. The notice shall include: (a) instruction to bidders; (b) specifications describing the required supplies, goods or equipment; (c) bid forms and schedules; (d) any required bond forms; (e) general provisions; (f) the time on or before which bids will be received; (g) where and with whom bids shall be filed; and (h) the date, time and place where and when bids will be publicly opened.

2. The City shall endeavor to provide notice to all responsible prospective suppliers or service providers whose names areonthecurrent bidders list or who have made a written request that their names be added thereto. However, a failure to provide notice shall not affect the validity of any subsequent bid award.

3. With the exception of a design-build contract for a public project, no person with whom the City has contracted to prepare or assist in the preparation of bid or proposal documents is eligible to submit a bid or proposal for the provision of the goods or the performance of the services so specified in the notice inviting bids or proposals.

4. Bid responses shall be in writing, and, with the prior approval of the City Attorney, 65 may be transmitted to the Purchasing Officer (or designee) by facsimile, by mail, electronically over the Internet, or by any other means of delivery. 66 5. Bids shall be kept confidential until bid opening.

6. Formal bids, timely received, will be publicly opened by the Purchasing Officer or designee and the bid pricing shall be read aloud and/or recorded. Formal bids received after the deadline for receipt of bids shall not be accepted by the City and shall be returned to the bidder unopened, unless opening is necessary for identification purposes. The Purchasing Officer or designee shall submit written notification to the bidder whose bid was received after the deadline stating what the deadline was, when the bid was actually received and that the bid is being returned because it was received after the deadline.

7. If no bids are received or if no bids meet the requirements as specified in the solicitation documents, the Purchasing Officer may cease theprocurement.

8. If twoor more bids arereceived with the same total bidprice, the City Council may, in its discretion, accept the bid it chooses.

9. All bids shall be deemed rejected if no City Council action is taken on the bids or proposals within 90 days after the bids have been received and opened, unless bidders agree to extend a bid’s effective date upon request by the City.

10. Should the bidder who submits the lowest bid not be a Local Business Entity, then the lowest bid submitted by a Local Business Entity that is within five percent of the lowest bid may be deemed the Lowest Monetary Bidder, whether or not that bidder is the second lowest bidder. Thereafter, the contract may be awarded to that Local Business Entity if it otherwise qualifies as the Lowest Responsible Bidder. This provision shall be inapplicable where otherwise prohibited by state or federal law or contract.

D. Rejection and/or Re-solicitation of Bids by Purchasing Officer. The Purchasing Officer may reject any and all bids received and, in his or her discretion, readvertise for bids, pursuant to the procedures described in Sections VI through VIII, when:

1. All bids substantially exceed the City estimate of cost for the purchase or exceed the amount budgeted for the purchase;

2. No responsive and responsible bids were received; and/or

3. Alternate bids have been submitted by one or more vendors making evaluations of the bid difficult.

E. Rejection of Bids by City Council. The City Council may reject any or all bids, when the City Council, in its absolute discretion, determines that the public interest would be served. If the City Council rejects all bids, it may direct that the Purchasing Officer readvertise for bids pursuant to the procedures described in Section VI through VII.

F. Withdrawal or Modification of Bid after Opening. Any bidder who seeks to withdraw or modify a bid because of the bidder’s inadvertent computational error 67 shall notify the City Department where bids were submitted no later than three working days following the bid opening. The bidder shall provide worksheets and such other information as may be required by the City to substantiate the claim of inadvertent error. Failure to do so may bar relief and allow City recourse from the bid surety. The burden is on the bidder to prove the inadvertent error.

G. Waiver of Defects and Technicalities. The City may waive defects and technicalities when to do so is in the best interests of the City. This policy and the procedures set forth herein are adopted to protect the interests of the City and not to protect the interests of unsuccessful bidders. Any failure by the City to follow its own ordinances, rules and regulations in the bidding process shall not create a private right of action for the bidder and no unsuccessful bidder may sue for or obtain damages for lost profits or any other damages as a result of any such failure by City.

H. Protest of Contract Award.

1. A non-selected bidder may protest award of a contract, public works contract, or consultant agreement to the selected bidder by submitting a written “ Notice of Intent to Protest,” which shall be received by the City Department administering the contract award, no later than ten calendar days after the bid opening date or no later than ten calendar days from the date that the City issues notice of designation of a bidder as non-responsible. If the tenth calendar day falls on a weekend or City holiday, the protesting bidder may submit the Notice of Intent to Protest on the first work day following such weekend or holiday. Failure to submit a timely Notice of Intent to Protest shall bar consideration of aprotest.

2. The Notice of Intent to Protest shall state all grounds claimed for the protest and include supporting documentation. Failure to clearly state the grounds for the protest and provide supporting documentation shall be deemed a waiver of all protest rights.

3. The Purchasing Officer or designee administering the contract award shall review the Notice of Intent to Protest to determine whether it complies with this section and whether a Protest Hearing is required.

4. A protesting bidder may present evidence at a Protest Hearing only when the alleged grounds for the protest are as follows:
1) the City failed to follow significant procedures or requirements specified in the Request for Bids or Request for Proposals or equivalent, including any amendments;
2) City employees or evaluation team members engaged in misconduct or impropriety;
3) the City’s designation of the protesting bidder as non-responsible was incorrect.

A protesting bidder shall not be entitled to a hearing to protest its own or another bidder’s responsiveness; however, the Purchasing Officer may exercise discretion and allow a bidder designated as non-responsive by the City Department to file a Formal Protest, pursuant to the Formal Procedures set forth under this section, if the Purchasing Officer determines that ahearing is necessary toresolve arelevant factual issue that cannot be determined from the
68 face of a bid document or proposal.
69 5. After review of a bidder’s Notice of Intent to File a Protest, the City Department will provide written notice to the bidder of its determination, detailing the factual basis for the City’s determination. Service delivery of the City Department’ s determination shall be made in writing to the bidder.

6. If the bidder desires tocontinue its protest notwithstanding the Purchasing Officer’s determination, the bidder must submit a written Formal Protest, which shall be received by the City Department administering the contract award within ten calendar days of service of the City Purchasing Officer’s determination. If the tenth calendar day falls on a weekend or City holiday, the protesting bidder may submit the Formal Protest on the first work day following such weekend or holiday. Failure to file a timely written Formal Protest shall bar consideration of the Formal Protest.

7. The written Formal Protest shall include a detailed factual response to the City Purchasing Officer’s determination, including all supporting documentation. The bidder shall also include a bid protest bond in any of the following forms: a surety bond from a California licensed surety, an irrevocable standby letter of credit, certified check, cashier’s check or money order made payable to the City of Solvang. The bid protest bond shall be in the following amounts:

Contract Value ($) Bond Amount
Less than $250,000 $ 5,000
250,000 – $1,000,000 $ 10,000
Greater than $1,000,000 $ 25,000

8. The City Council shall serve as the Protest Body and determine whether the grounds stated in the written Formal Protest meet the requirements for a Protest Hearing, as set forth in this section. The Protest Body shall conduct the Protest Hearing in accordance with the Policy approved by City Council. The bidder’s failure to comply with Formal Protest procedures set forth in the Policy approved by City Council shall bar further consideration of the bidder’s Formal Protest.

9. If the Protest Body’s decision upholds the determination of the City Department regarding the award, the Protest Body, at its discretion, may assess the City’s costs of the Protest Hearing. The bidder shall then pay the assessed costs within thirty calendar days of service of the decision; otherwise the City may deduct the assessed costs from the bid protest bond provided by thebidder.

10. The decision of the Protest Body shall be in accordance with the Policy approved by City Council and shall become final on the date of service of thedecision.

11. The bidder’s filing of a Notice of Intent to File a Protest or written Formal Protest shall not preclude the City Manager from rejecting all bids and rebidding a contract. 70 VII. Informal Bidding Procedure
A. Circumstances Where Informal Bidding is Allowed or Required.

The informal bidding procedures may be used for any of the following purchases of supplies, equipment, or services:

1. When the supplies, equipment, have an anticipated value of between 10,000 and $50,000;

2. When the services have an anticipated value of between 10,000 and $35,000;

3. When a prior solicitation of bids occurred using the formal bidding process, but the solicitation yielded:
a) no bids or no bids that were responsive andresponsible; b) bids which substantially exceeded the City’s estimated cost for the purchase; c) alternative bids from one or more vendors making evaluation of the bid difficult.
d) When the vendor was selected through on-call services competitive bidding process.

4. When the contract value exceeds $100,000 and the City Council:
a) has determined, by resolution, that the public interest will be served by using informal bidding for a specified contract or a specified class of contracts; and b) the supplies, equipment, or services fall within the designated class of contracts.

5. When the contract value exceeds $75,000, and:
a) the Purchasing Officer, in writing, has determined that use of the formal bidding process would serve no useful purpose; and
b) that written determination is provided to the City Council a minimum of fourteen calendar days before the contract is executed by the City Manager.

B. Procedural Requirements. The informal bidding procedures are as follows:

1. The City Manager, Purchasing Officer or designee shall solicit bids by written or oral request.

2. When reasonable, at least three bids shall be solicited.

3. Responses shall be in writing, and, may be transmitted to the Purchasing Officer or designee by facsimile, by mail, electronically over the Internet, or by any other means of delivery.

4. Bids shall be kept confidential until bidopening.

5. The Purchasing Officer or designee shall keep a public record of all open market requests and bids for a period of one year after the submission of the bids or, if no bids are received, the placing of the orders.

6. When multiple bids are received, the bid shall be awarded to the lowest 71 responsible bidder.

7. All bids shall be deemed rejected if no action is taken to accept the bid or proposal within 90 days after the bids have been received and opened, unless 72 bidders agree to extend a bid’s effective date upon request by the City.

C. Rejection of Bids by Purchasing Officer. The City Manager, Purchasing Officer or designee may reject all bids obtained using the informal bidding procedure when:

1. The City has determined that the supplies, equipment, or services that were solicited are no longer required;

2. The bids substantially exceeded the City’s estimate of cost for the purchase or exceeded the amount budgeted for thepurchase;

3. No responsive and responsible bids are received;

4. Alternate bids have been submitted by one or more vendors making evaluations of the bid difficult; or

5. The Purchasing Officer has determined it would serve the public interest to reject all bids or to re-solicit bids.

VIII. Alternative Bidding Procedure
Rather than using the formal or informal bidding procedures of this policy, the Purchasing Officer may solicit bids using the following alternative bidding procedures in the circumstances set forth in the subsections below.

A. Competitive Negotiations. Competitive negotiations may be authorized for the purchase of highly specialized services, supplies, or equipment using the competitive negotiation procedure when: ( a) the supplies or equipment are such that suitable technical or performance specifications arenot readily available; (b) the City is not able to develop descriptive specifications; or (c) the proposals for the purchase would be more advantageous to the City.

1. When the purchases are made by competitive negotiations, the best offer, as judged against proposal evaluation criteria, shall be accepted in the event that the City, in its discretion, determines to award a contract. When reasonably possible, at least three businesses shall be approached as part of the competitive negotiation process. The City Manager, Purchasing Officer or designee shall solicit a request for proposals, a request for qualifications, or other responses from those businesses which are engaged in the competitive negotiation process.

2. Prior to selecting a service provider, the City may engage in discussions and negotiations with the parties submitting proposals to refine the proposals, negotiate the terms of proposals, or negotiate the fees, charges or other elements of the proposals.

3. The use of competitive negotiations is not intended to be used for the purpose of avoiding the bidding procedures as set forth in this policy.

B. Professional Services. A request for proposals or a request for qualifications shall be used when the City solicits the services of attorneys, accountants, architects, engineers or specialized consultants or professionals. When the City seeks a combination of equipment and professional services, the Purchasing Officer or 73 designee, in his or her discretion, shall choose whether to use a request for proposal process, as provided in this section, or the formal or informal procedures as provided in this policy.

1. Requests for proposals, or statements of qualifications, shall include the following information: scope of work; plans and specifications, if applicable; time schedule; cost; insurance requirements; and list of employees who will be assigned to the project, and their qualifications.

2. Proposals will be reviewed and evaluated according to: experience and expertise in the field; quality of consultant' s work; ability of firm or consultant to meet project deadlines; demonstrated competence necessary for the performance of the services required; professional qualifications; overall cost of the service; and, past performance on similar projects.

3. Prior to selecting a service provider, the City may engage in discussions and negotiations with one or more parties submitting proposals to refine the proposals, negotiate the terms of proposals, or negotiate the fees, charges or other elements of the proposals.

4. In the event there is only one individual or firm that can provide or is especially suited to providing the required professional service in a timely manner, the Purchasing Officer may waive the requirements for solicitation of multiple proposals.

D. Additional Quantities. Following the execution of a contract or purchase order for supplies, materials, or equipment, the Purchasing Officer may purchase additional quantities at the quoted price, if such an option for additional quantities is offered by vendor and an unencumbered balance of an allocated appropriation is available.

IX. Post-Bid Negotiations
To obtain better value for the City, the Purchasing Officer or designee may engage in negotiations with a bidder who qualifies as the lowest responsible bidder to obtain price reductions or contract enhancements. If such price reductions or contract enhancements are negotiated, the contract to be executed will be drafted to include such reductions or enhancements. In addition, the City, after receiving proposals for work that are not governed solely by price, may negotiate with the bidders regarding the particular terms of the contract prior to selecting or contracting with a bidder.

X. Design-Build Contracts
A. Purpose and intent. The purpose of this section is to provide definitions and guidelines for the use, evaluation and award of design-build contracts.

B. Definitions. For the purposes of this section, the following definitions apply:

Design-build” means a procurement contract method in which both the design and construction of a construction project are procured from a single entity pursuant to a competitive negotiation process.

Design-build entity” means a natural person, partnership, joint venture, corporation, business association or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services for a 74 public works project under a design-build agreement.

Design-build entity members” includes any person who provides licensed contracting, architectural, or engineering services.

C. Design-build procurement. The City may enter into design-build procurement contracts subject to the prior approval of the City Manager or the City Council as provided in Section VI.A.2. For purposes of this section only, prior to procuring a design-build contract, the City shall prepare a request for proposal setting forth the scope of the project that may include, but is not limited to, the size, type, and desired design character of the buildings, structures, and site, and performance specifications.

The performance specifications shall describe the quality of materials, equipment, and workmanship, preliminary plans or building layouts and other information deemed necessary to adequately describe the City’s needs. The performance specifications shall be prepared or reviewed and approved by a design professional that is duly licensed and registered in California or by a City-authorized employee.

D. Competitive prequalification and selection process. The City may establish a competitive prequalification and selection process for design-build entities that specifies the prequalification criteria, as well as recommends the manner in which the winning entity will be selected.

E. Prequalification criteria. Prequalification may be limited to consideration of all or any of the following criteria supplied by a design-build entity:

1. Possession of all required licenses, registration, and credentials in good standing that are required to design and construct the project.

2. Submission of documentation establishing that the design-build entity members have completed, or demonstrated the capability to complete projects of similar size, scope, building type, or complexity, and that proposed key personnel have sufficient experience and training to competently manage and complete the design and construction of the project.

3. If the design-build entity is a partnership, limited partnership, joint venture or other association, a listing of all of the partners, general partners, or association members known at the time of bid submission who will participate in the designbuild contract.

4. Submission of a proposed project management plan establishing that the designbuild entity has the experience, competence, and capacity needed to effectively complete the project.

5. Submission of evidence establishing that the design-build entity has the capacity to obtain all required payment and performance bonding, liability insurance, and errors and omission insurance, as well as audited financial statements assuring the City that the design-build entity has the capacity to complete theproject.

6. The City may require that information required pursuant to this subdivision shall be verified under oath by the design-build entity and its members in the manner in which civil proceedings in civil actions are verified. Information that is not a public record pursuant to the California Public Records Act [Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code] 75 shall not be open to public inspection.

F. Selection method. The Purchasing Officer or designee shall select one of the following methods as the process to be used for the selection of the winning designbuild entity:

1. A design-build competition based on performance, specifications, and criteria set forth by the Purchasing Officer or designee in the request for proposals. a. Criteria used in this form of evaluation of proposals may include, but not be limited to, items such as qualifications, related experience, past performance, proposed design approach, initial and/or life-cycle costs, project features, financing, quality, capacity, schedule, operational and functional performance of the facility, and references. However, any criteria and methods used to evaluate proposals shall be limited to those contained in the request for designbuild proposals. b. Award shall be made to the design-build entity on the basis of the technical criteria and methodology, including price, whose proposal is judged as providing the best value in meeting the interests of the City and meeting the objectives of the project.

2. A design-build competition based on program requirements, performance specifications, and a preliminary design or combination thereof set forth by the City in the request for proposals. Limited drawings and specifications detailing the requirements of the project may accompany the request forproposals. a. The City shall establish technical criteria and methodology, including price, to evaluate proposals and shall describe the criteria and methodology of evaluation and selection in the request for design-build proposals. b. Award shall be made to the design-build entity on the basis of technical criteria and methodology, including price, whose proposal is judged as providing the best value in meeting the interest of the City and meeting the objectives of the project.

3. A design-build competition based on program requirements and a detailed scope of work, including any preliminary design drawings and specifications set forth by the awarding authority in the request for proposals.
a. Award shall be made on the basis of the lowest responsible and reliable bid.

4. References to “ price” in this subsection shall not preclude selection procedures whereby preliminary and final project price or value-engineering scope and price changes may be negotiated subsequent to the selection of the design-build entity.

G. Work listing. The City may establish minimum qualification, other requirements, and a process for the selection and award of subcontractors by the design-build entity in its contract documents.

H. Except as provided below, any architectural firms, engineering firms, specialty consultants, or individuals retained by the City to assist in the preparation of the preliminary design or request for proposals shall not be eligible to participate in the competition with any design-build entity.

The City, however, reserves the right to require as a condition of awarding a contract 76 to the successful design-build entity under the RFP, that the design build-entity accept assignment of the agreement between the City and any architectural firm, engineering firm, specialty consultant or individual(s) retained by the City in the preparation of preliminary design or request for proposal. Design-build entity shall not terminate such assigned agreement with the architectural firm, engineering firm, specialty consultant or individual(s) without the express written approval of the City, which approval shall not be unreasonably withheld.

XI. Award and Execution of Contracts
A. Purchase Contracts Executed and Approved by City Council. Except in emergency situations pursuant to Section V.E. and situations involving applicantfunded environmental assessments, all contracts for supplies, services, equipment and public projects with an estimated amount of $100,000or greater shall be awarded by the City Council.

B. Purchase Contracts Executed by City Manager. Contracts for supplies, services, equipment and public projects in an estimated amount of less than $ 35,000, and contracts authorized by Section V.E or situations involving applicant funded environmental assessments shall be executed by the City Manager.

C. Notice of Award; Satisfaction of Post-Bid Requirements. After the City makes a determination to award a contract in accordance with this policy, the City shall issue a written notice of award of contract to the contracting party. Within the time specified in the notice of award, the bidder shall submit to the City all of the documents required by the invitation for bids (if any are identified, such as signed contract documents, insurance, or performance security). If no time is specified in the notice of award, the bidder shall submit all required documents within ten calendar days after the date of the notice of award.

D. Awardto Next Lowest Bidder. Intheevent that thebidder awarded thecontract does not properly and timely execute and submit all of the documents required by the invitation for bids, the City may void the previous award of contract, and award the contract to the next eligible bidder. This process may continue until the City awards the contract to bidder who complies with this section.

XII. Modifications of Awarded Contracts
A. Contracts Originally Approved by the City Council. Contracts originally approved by the City Council may be modified or amended in writing under either of the following circumstances:

1. The City Manager is authorized to approve written contract amendments or written change orders when:
a) the value of the amendments or change orders, in aggregate, do not exceed the greater of $25,000 or ten percent of the aggregate value of the original contract; and
b) the contract amendment or change order is executed by contractor and the City Manager.

2. The City Manager is authorized to approve written amendments or written change orders in amounts greater than provided in Subparagraph 1, when all of the following apply:
77 a) the City Council has authorized the City Manager to execute amendments or modifications with a value that at least equals the amount of the value of the change order or modification; and
b) such authorization extends to the subject matter of the proposed amendment or change order.
78 B. Contracts Originally Approved by the City Manager. The City Manager may approve amendments tocontracts the City Manager approved pursuant to Section VII, unless the amendment causes the aggregate value of the contract to exceed 110,000.

C. Preconditions to Amendments. No contract amendment shall be approved under this section unless:
1) funds have been appropriated by the City Council which are available for any additional expenses created by the contract amendment;
2) the amendment is executed by the contractor and the City Manager; and 3) no terms in the original agreement are altered or modified other than as set forth in the amendment; and
4) the amendment represents a modification to the original scope of work, rather than an award of new work that is properly subject to a separate bidprocess.

D. Void Actions. No contract amendments or change orders shall be allowed except as permitted by this section. Any contract modification or change order approved in violation of this section shall be null and void. No payment shall be allowed for any supplies, equipment, property, services, or work unless performed under a contract, contract amendment, or change order approved and executed as provided in this policy.

XIII. Bidder’s Security
A. The City shall have the authority to require a bid bond, performance bond or other security in such amount as it finds reasonably necessary to protect the best interests of the City consistent with applicable law. If the City requires a performance bond or other security, the amount of the bond shall be described in the notice invitingbids.

B. Any bond or other security required as part of a bid shall be forfeited upon the failure of a bidder to execute the contract within ten days after the notice of award of contract has been mailed, unless the City is solely responsible for the delay in executing the contract.

C. The amount of security forfeited shall be an amount equal to the difference between the bid amount of the bidder that has been notified of the award and the next lowest responsible bidder. However, the full amount of the security shall be forfeitedif:
1) the amount representing the difference between the bids equals or exceeds the value of security; or
2) there is no responsible bidder other than the bidder or bidders that have already forfeited their bond or bonds.

D. A bond or security shall be returned or released when the bidder executes the contract subject to the security, or when the City has finally and fully rejected the bid subject to the security.

E. Nothing in this section shall prevent the City from:
1) awarding a contact to the second lowest responsible bidder after the lowest responsible bidder fails to execute the contract;
79 2) taking the security of the second lowest bidder or other low bidder that refuses to sign a contract within ten days after notice of award of contract has been mailed; or (3) rejecting the remaining bids after the lowest responsible bidder or bidders fails to execute a contract.

XIV. Calculation of Dollar Amounts
For each contract, the dollar limits identified in this policy (for both the authority of the City Manager and the method of contract solicitation) shall be the greater of:
1) the total dollar amount of the City’s commitment to pay a contractor; 2) the total dollar amount of a contractor’s commitment to pay the City; or 3) the estimated fair market value of property subject to acquisition or disposal.

For the purpose of determining dollar limits pursuant to this policy, a “commitment” to pay includes the amount designated ina contract as a “not to exceed,” amount or an estimated payment amount, even though the City’s actual contractual obligation is based on actual hours performed at an hourly rate. The City will not split or separate into smaller contracts, any contract for the purpose of evading the dollar amounts identified in this policy.

XV. Exemptions - Certain Supplies, Services and Equipment Contracts for supplies, services, equipment and public projects may be approved without complying with the bidding process of this policy when the contract is for any of the following:

A. Utility services and related charges.

B. Contracts for governmental or proprietary services provided by another governmental entity or quasi-public entity.

C. Real property purchases, leases, and related title and escrow fees.

D. Transportation and freight charges when not specifically indicated on a purchase order.

E. Insurance and bond premiums.

F. Advertisements in newspapers or other periodicals.

G. Works of art.

H. Professional service contracts (e.g., environmental consultants, outside legal services) which are completely funded by private development applicants.

I. Purchases of books, periodicals, newspapers, trade journals and other publications.

J. Purchases of gasoline, oil, or other automobile care products in connection with the immediate use or emergency repair of City vehicles.

K. Purchase of used equipment, which in the opinion of the City Manager, is satisfactory for the work of the City.

L. Membership dues in professional organizations, conventions, training, travel arrangements, including hotels, car rentals, and airfare.

M. When the estimated value of the supplies, services or equipment purchased is less than $15,000; or in the case of a public project the estimated value of the public project is less than $50,000.

N. When thecommodity or service can beobtained from only one vendor andsole source approval has been obtained in accordance with Section XXII A. 80 O. When services are involved, which will be performed entirely by City forces. 81 P. When the City Manager, after consultation with the City Attorney, determines in writing that special circumstances would cause the implementation of the informal or formal bidding process to be infeasible, impractical, or otherwise not in the best interest of the City. The basis for the City Manager’s determination shall be set forth in a certificate executed by the City Manager and shall be a public record.

Q. When the City has solicited bids in accordance with this policy without getting any qualified responses and determines that the services, equipment, or supplies are still needed.

R. When the City Council, by a four-fifths vote, finds that the City’s interests will be served by waiving the requirements of this policy for an individual contract; S. When the award of contract involves a public project as defined in this policy.

T. When a specialized bidding process is required by applicable state or federal law and the City abides by that bidding process.

XVI. Local Business Preference
A. Findings.

1. The Santa Ynez Valley businesses are a significant sector of the local economy and form the backbone of our neighborhoods. Local businesses contribute to Solvang’s economy each year. Through payroll taxes alone, small local businesses make a significant investment in the economic health of our city and the quality of life of its citizens and visitors.

2. Because Santa Ynez Valley’s businesses experience higher costs than large businesses or businesses located outside the city, they suffer disadvantage in any competition with those businesses. City staff finds that small local businesses are at a competitive disadvantage in competing for work on public contracts. Because of their size, most local businesses are at an even greater competitive disadvantage in competing for work on public contracts.

3. Local businesses which seek to enter into contracts with the city of Solvang are at a competitive disadvantage with businesses from other areas because of the higher ( administrative) costs of doing business in the Santa Ynez Valley ( e.g., higher taxes, higher rents, higher wages and benefits for labor, higher insurance rates, etc.).

4. The public has an interest in fostering a strong and vibrant network of local businesses in Solvang and the Santa Ynez Valley. The public interest is best served by encouraging businesses to locate and remain in the Santa Ynez Valley through the provision of a minimal good faith preference to local businesses in the awarding of city contracts. In part, Solvang can accomplish this goal by ensuring that small local businesses can compete for public contracts on a level playing field.

5. Staff finds that the disadvantages suffered by small local businesses in competing as prime contractors on public contracts can be reduced by discounting their bids and ratings by five percent. Granting a five percent discount does not unduly burden businesses not eligible for such discounts, and is similar to the corrective adjustments given to local businesses in other jurisdictions.

B. Purpose – Assistance to Local Businesses.
82 The city shall assist local businesses by increasing their ability to compete effectively for the award of city professional services contracts and public works contracts. The city shall provide the bid discounts and contracting opportunities set forth in this section, information and training, and other assistance to local businesses, in order to accomplish the goal of contracting with more local businesses.

C. Amount of Discount.

Unless otherwise provided in this section, contract-awarding departments shall apply a five percent discount to any bid from a business pre-designated as a local business.

Contract-awarding departments shall apply these discounts to each stage of the selection process, including qualifications, proposals and bid awards.

D. Local Business Designation – Criteria for Local Business Designation.

Through appropriately promulgated procedures, if any, the Administrative Services Director or his/her designee shall designate as a local business any business that meets all of the following criteria:

1. The business is financially and operationally independent from any other business.

2. The business is a for-profit enterprise.

3. The business performs a commercially useful function.

4. The business maintains its principal place of business in a fixed office within the geographic boundaries of the Santa Ynez Valley that provides all of the services for which local business designation is sought, other than work required to be performed at a job site; provided, however, that suppliers are not required to maintain their principal place of business in Solvang, but are required to maintain a fixed office in the Santa Ynez Valley that meets all of the requirements of this section other than the principal place of business requirement.

An “office” is a fixed and established place of business, including a qualified home office, where business is conducted on a regular basis of the type for which local business designation is sought. A residence qualifies as an office only if none of the persons who own or control the business also maintain an office outside the residence in the same or related field, and the persons who own or control the business claimed a business deduction on theprior year’s income tax return, or for businesses started after the last tax return, would qualify for a deduction on the next tax return. None of the following constitutes an office: a post office box, a temporary location, a movable property, a location that was established tooversee a project, such as a construction project office, or workspace provided in exchange for services, as opposed to monetary rent.

To establish a principal place of business in the Santa Ynez Valley, a business must demonstrate that the majority of its principals are based in the Santa Ynez Valley office.

Suppliers must maintain a warehouse in the Santa Ynez Valley that is continuously stocked with inventory consistent with their certification. Truckers must legally park their registered vehicles and trailers within the Santa Ynez Valley.

5. The business possesses a current Solvang Business Certificate.

6. The business has been located and doing business in the Santa Ynez Valley for at least six months preceding the application for certification. 83 7. The business owner has licenses or other relevant trade or professional certifications, or, where licensing is not required, relevant training and experience that are appropriate for the type of business for which the business seeks certification.

8. The business is owned and controlled as defined herein by individuals who reside in the United States or its territories.

E. Local Business Designations – Period of Designation.

The City Manager or his/her designee may designate a local or small local business for a period not to exceed three years; provided, that businesses must at all times throughout the designation period meet the criteria in subsection ( D) or (E) of this section. The City Manager or his/her designee may require designated businesses annually to submit documentation for the purpose of verifying continuing eligibility for any designation hereunder. A business must have been designated a “ Local Business,” prior to submitting a bid, in order to qualify for the discount identified in Section XVI C.

F. Exceptions.

1. Notwithstanding any other provision of this section, a discount shall not be applied where to do so would result in a contract being awarded to a business without the capacity to perform it. The City Manager, Administrative Services Director, or either of their designees may adopt rules and regulations setting standards for determining that a local business has sufficient skill, experience, and financial capacity to perform the contract.

2. Notwithstanding any other provision of this section, a discount shall not be applied when prohibited by state or federal statutes or regulations to be awarded to the lowest responsible bidder.

XVII. RELATIONSHIP TO STATE LAW
A. Pursuant to Section 1100.7 of California Public Contracts Code the City Council declares that the Municipal Code for the City of Solvang, or any portion thereof, is expressly exempt from the California Public Contracts Code.

B. All public works contracts in excess of $25,000.00 shall contain a requirement that the contractor pay prevailing wages and otherwise comply with Labor code § 1770 et seq.

C. California Labor Code Compliance. Unless otherwise required by law or the provisions of this code, the City is not subject to the provisions of Articles 1, 1.5, or 2 of Chapter 1, Part 7, Division 2 of the California Labor Code, or with any provisions of the California Administrative Code enacted pursuant to those articles.

D. Volunteer Services. The provisions of Section 1720.4 of the California Labor Code, excluding Subsection 1720.4(1) (C), shall be applicable in the City.

XVIII. PURCHASE REQUISITION
A. A purchase requisition is required for a purchase order to be issued.

B. The requesting department prepares the purchase requisition using the City’s software for the entire amount of the purchase including tax, shipping and handling, 84 etc. and codes with the correct accounting code(s).

C. Prior to submitting the purchase requisition for approval, all documents verifying compliance with this Policy must be available and on file in the requesting department.

These documents, as updated by Administrative Services from time to time, may include:
a. Written quotes with request for quote showing product specifications and quote tabulation, if appropriate.
b. Executed contract/agreement or amendment for services. c. Insurance and endorsements if required by agreement from Risk Manager. d. Verification of City of Solvang business certificate if conducting business inthe City of Solvang. If not required, include notation why it is not required. e. Approved Software/Hardware Purchase Request Form. These forms can be found on the City Network. For further information regarding software and/or hardware purchases see the City of Solvang Information System Usage Policy. f. Sole source memo including verification of sole source.

D. The purchase requisition is then submitted for approval. This submittal and approval represents that the department has sufficient funds budgeted to pay for the purchase, all documents are attached and acceptable, and the Policy has been followed.

XIX. PURCHASING REVIEW
A. Upon receipt of a purchase requisition, Purchasing checks the document for accuracy and completeness. If the purchase requisition is not complete and accurate, a purchase order will not be issued and the requesting department will be notified.

B. A purchase order is required prior to purchase being made or work commencing unless otherwise noted in this Policy or as authorized by the City Manager or Purchasing Officer.

XX. PURCHASE ORDER
A. A purchase order is the principal document used to obtain goods and services forthe City.

B. Purchase orders are required for all goods or services costing more than $500, unless the goods or services are being procured using the City Procurement Card ( see Section XXII C).

C. Purchasing will issue apurchase order only after the City Manager, Purchasing Officer, or designee has approved the purchase requisition.
85 D. Change orders that amend any purchase to $ 50,000 or greater will require prior approval from the City Council. Documents verifying compliance with this Policy as outlined in
Purchase Requisition, Section XVIIX of this Policy must be submitted with the change order.

XXI. BLANKET PURCHASE ORDER
A. Blanket purchase orders can be utilized for goods or services that are used by the City for ongoing operations. Vendors agree to honor a price for a given product for a given period of time. The City may not know specifically how much of the product will be consumed or where or when it will be consumed.

B. Blanket purchase orders have the same requirements that are outlined in this Policy as other goods or services.

XXII. OTHER PURCHASING METHODS
A. Sole Source/Non-Competitive Negotiations

1. A sole source purchase is one made from only one source of supply or a purchase for which no advantage can be gained through competitive bidding. Sole source purchases often arise because specifications and requirements for the purchase are so distinct that only one possible source can provide the purchase or meet established standards. This may be the case with replacement parts for brand name machinery, equipment or vehicles. To be valid, the sole source must be the only reasonably known source of supply meeting the bona fide specification requirements. A sole source decision is not permitted merely upon the grounds that such approach is the most convenient or that the subject product is preferred by staff.

2. Initiating the Sole Source Purchase: The department requesting to procure supplies, equipment, materials, or services from only one available source of supply, shall complete a “Request for Sole Source Purchase Approval” form found on the City’s Network and shall obtain the City Manager’s or Purchasing Officer’s approval. The City Manager or Purchasing Officer may approve the sole source status only after confirming there is only onevendor or supplier oftheneeded items or services.

3. Verification of Sole Source: Prior to any action on the purchase by the Finance Department, verification shall be obtained that the procurement meets the sole source definition set forth above, and that the procurement requisition form is complete with the proper approval of the requesting department or authorized designee. For large contracts and/or construction supplies, equipment, materials and services, the City Attorney may be consulted on the applicability of the sole source procurement procedures. In such cases, the proposed solicitation shall not begin until the City Attorney has confirmed the procurement qualifies as a sole source purchase.
86 4. Cost Analysis: The price for the proposed purchase shall be obtained from the sole source vendor. Reasonableness of the price should be established by a verifiable means, which may include catalogs, market price for similar commercial products, or on the basis of prices set by law or regulation. If the price cannot be verified, a cost analysis shall be conducted. A cost analysis is a detailed evaluation of the cost elements comprising the proposed price to determine if appropriate resources were applied to the purchase, and if the costs are proper, reasonable, allowable and allocable.

5. It is the City practice to encourage competition in
procurements. Non-competitive negotiations may be used for purchases of unique goods or services in the event that either the goods or services are available from only one source, or there are emergency or other time constraints.

B. Cooperative Purchasing Agreements

1. The Purchasing Officer shall have the authority to join with other public or quasi-public agencies in cooperative purchasing plans or programs for the purchase of supplies, services and/or equipment by contract, arrangement, or agreement as allowed by law, provided that the Purchasing Officer determines that participation is in the City’s best interests and the administering agency has made its purchases in a competitive manner.

2. Purchases through cooperative purchasing agreements may be accomplished without soliciting competitive quotes. In addition, the Purchasing Officer may buy directly from a vendor at a price established by another public agency when the other public agency has made its purchase in a competitive manner

3. Departments wanting to utilize a cooperative purchasing agreement must submit all information regarding the cooperative purchasing agreement to Purchasing.

4. Purchasing will coordinate the submittal of the cooperative purchasing agreement to the City Attorney for review and approval toform.

C. Credit Cards
Credit card purchases are governed by this Policy. A credit card can be used for items such as: travel expenses, hotel reservations, business meeting meals, training, and ordering goods from vendors approved by the Department Director.

1. The City Manager will be issued with a credit card with a $20,000 limit to be used for business expenditures only.

2. The Department Heads, and Supervisors will be issued a credit card with a 5000 limit/month to be used for City business expenditures only. 87 3. It is the responsibility of every individual issued a credit card to reconcile and attach backup documentation, with the appropriate accounts. 88 4. Credit card receipts and supporting documentation should be turned into Accounts Payable as soon as possible but no later than 10 days after incurring the expense.

5. The monthly credit card statement and supporting documentation will be reviewed by the Accounting Supervisor and Purchasing Officer.

6. If a credit card is used for purchases, a Purchase Order is not required. 89 D. Petty Cash
Petty cash may be used for purchases up to $50 or the limit as defined in the City of Solvang Petty Cash Policy.

XXIII. EXCEPTIONS
The following items do not require the use of Purchase Orders and are not subject to the provisions of this Policy except the requirement for an agreement as determined by Section V of this Policy:

Annual Maintenance Payments Annual
Lease Payments
Employee Benefits
Bond and Trust Account Payments
Permit Fees
Deposit Accounts
Developer Reimbursement Agreements
Employee Reimbursements
Escrow Payments
Fuel (Gasoline/Diesel)
Insurance
License/Certifications and Renewals
Memberships/Dues
Offsite Training Expenses
Pass-Through Payments
Postage
Refunds
Subscriptions
Travel Expenses
Utility Payments
XXIV. MISCELLANEOUS PROCEDURES
A. Hardware and Software Agreements

1. Hardware Purchases
All purchases of information technology hardware should be coordinated with the Purchasing Officer and the IT staff prior to purchase to ensure appropriate configurations, security, and compatibility with existing equipment.

2. Software Agreements
All software agreements should be submitted to the Purchasing Officer for review and coordination with the IT Staff and City Attorney, prior to purchase.

3. Pre-packaged “ Out of the Box” Soft ware Agreement
Pre-packaged “ out of the box” software often requires the acceptance of terms of agreement in order to install, support or maintain the software. Since vendors 90 will not change the terms of agreement, it becomes a business decision as to the need of the software and risk level faced and is subject to Department Director approval in consultation with the IT Staff, Purchasing Officer, and/or City Attorney.

4. A Software/Hardware Purchase Approval Form is required for all software agreements regardless of the dollar amount of software to be purchased.

B. Purchases of Used Equipment or Furniture

1. Used equipment or furniture can be purchased if the cost can be demonstrated to be a significant savings to the City.

2. Prior to purchasing used equipment, the Public Works Maintenance staff must perform an equipment inspection.

3. Used equipment or furniture purchases must be approved by the appropriate Department Director and City Manager or Purchasing Officer.

4. Unless specified otherwise, all other provisions in this Policy are inforce.

C. Long Term Agreements
All long term agreements and/or purchase orders that have not been approved by City Council where a vendor holds the price from year-to-year must be requoted once every three ( 3) years to five ( 5) years to ensure that the City is obtaining the best price for the goods and/or services.

D. Insurance Expiration Listing
The Risk Manager will regularly send departments a listing of insurance expirations. It is the department’s responsibility to secure and submit updated insurance information to the Risk Manager.

E. Product Warranties
When applicable, departments will keep all product warranties for goods or services purchased.

XXV. MONITORING RECEIPT OF GOODS OR SERVICES
Upon receipt of the goods (“items”) or services, the requesting department shall inspect the items to determine if:
the condition is acceptable
the purchase is complete
the specifications were met
billed services have been completed satisfactorily
Upon inspection the requesting department shall sign and date the packing slip (if applicable) and forward as soon as possible to Accounts Payable. 91 92
A. If the items are acceptable and/or the service rendered is complete, the requesting department shall approve the invoice and forward it to Accounts Payable, or approve the invoice in Laserfiche.

B. If the items are not acceptable or incomplete, or the services were not provided as required, the requesting department shall contact the vendor, or complete a requisition for a change order to the purchase order to reflect the differences.

C. If items are back-ordered and are to be delivered at a later date and the balance of the order is not received within thirty (30) days, the requesting department shall contact the vendor, or complete a requisition for a change order to the purchase order to cancel the balance of the order and reflect thedifferences.

XXVI. INVOICE PAYMENT PROCEDURES
A. The City desires to pay its bills in a prompt manner to take advantage of discounts and to avoid late charges and penalties.

1. All invoices should be addressed to:

City of Solvang
ATTN: Accounts Payable
1644 Oak Street
Solvang, CA 93463

2. Invoices may also be emailed to:
ap.invoices@cityofsolvang. com

3. All invoices will be scanned into Laserfiche upon receipt. Invoice payment is contingent upon receiving a proper invoice, including applicable sales tax, and delivery of the goods or services.

4. All departments must cooperate by approving invoices and promptly returning the invoice to Accounts Payable. Departmental approval signifies that the invoice is correct and the goods or services have been received.

B. Accounts Payable issues checks on the Monday before each City Council Meeting. In order for a check request, invoice or any other payment document to be issued, Accounts Payable must receive proper documentation, including all approvals, no later than Friday at Noon of the previous week. Unless otherwise required, invoices will be scheduled for payment thirty (30) days after date of invoice, if correct and charges are appropriate.

C. Pre-issue checks ( those issued on alternate check runs) will be issued only in the following situations:

1. If deemed necessary to avoid late payment charges
93 2. If deemed necessary to take advantage of discounts

3. If deemed necessary for customer service

4. In emergency situations

5. Other situations as approved by the City Manager
All Pre-Issue checks must be approved by the Department Director, the Director of Administrative Services and/or the City Manager.

Departments and staff must plan ahead for funds, especially travel, conference registration and per diem requests.

XXVII. UNAUTHORIZED PURCHASES
A. If any department purchases or contracts for any goods or services without complying with the provisions of this Policy, such purchases or contracts may be void and of no effect, unless thereafter approved by the person or entity required by this Policy to approve such purchases or agreements. However, the City Council or authorized staff shall be under no obligation to approve unauthorized purchases not made in accordance with this Policy.

B. If a purchase or contract is found to not comply with this Policy, a memo signed by the Department Director must be prepared detailing what was out of compliance, how it happened, and what steps will be taken to ensure that this Policy will be adhered to in thefuture. This memo must then be brought by the Department Director tothe Director of Administrative Servicesthe City Manager for discussion. Both Directors will then discuss the out of compliance issue with the City Manager.

C. The Department Director approving an unauthorized purchase shall be held accountable for identifying and correcting non-conforming purchases made by department employees. Repeated instances of non-conforming purchases within a department may lead to disciplinary action against the Department Director.

D. No department shall divide orders for goods or services in order to evade the dollar limits of this Policy.

E. No goods or services for personal use may knowingly be purchased on City accounts or with City funds.

XXVIII. SURPLUS PROPERTY
A. All departments shall complete an inventory in October, and submit the report to Purchasing, identifying all capital asset goods and equipment or Information Systems hardware or software that are no longer used or that have become obsolete or worn out. Purchasing will make useable items available to other departments.

B. All surplus property must be disposed of in accordance with the City of Solvang Surplus Property Policy.

C. All checks received for property sold, after authorization from the Purchasing Officer, shall be made payable to “City of Solvang”.

D. Donating Surplus Assets.
94 Subject to City Council approval, surplus equipment and/or supplies may be donated to local organizations, including but not limited to: school districts, public or private schools, service organizations, and non-profit organizations. Unless expressly authorized by Council resolution, such assets shall have been determined to have little or no market value using open methods of public sale prior to being donated to local organizations. Organizations that provide services directly in or to Solvang residents or businesses shall have first priority.

XXIX. CAPITAL ASSETS
Capital assets will be described as follows:

Assets that will be tracked:

Land parcels
Site Improvements
Buildings / Structures
Machinery and Equipment
Licensed Vehicles
Major Infrastructure
Right of Ways / Easements
Capital Improvements
Assets of an intangible nature
Excluded items will be:

Records and drawings, consumable supplies, and spare parts and inventory items Leased property and personal property of employees
Studies and reports
Maintenance and repair of capital assets
Equipment includes moveable property which is relatively permanent and/or of significant value such as generators, pumps, machines, tools, vehicles and portable or removable devices. Items with a value under $5,000 will not be included unless included in the City’s Equipment Replacement Program.

Assets will be capitalized and tagged in accordance with the City of Solvang Capitalization and Tagging of Fixed Assets Policy.

When adding, disposing of, or trading-in capital assets, a Surplus Property Form must be completed and submitted to Purchasing along with a purchase requisition if required. All disposals ( trade-in, donation or disposal of irreparable assets) must be approved by Purchasing and the Purchasing Officer prior to disposal.

The following procedures must be completed when requesting pick-up or delivery of surplus equipment and/or vehicles:

A. Complete a Surplus Property Form, located on the City Company Share.

B. Submit the completed form to Purchasing.

Each department will be responsible for arranging for the pickup of requested surplus 95 equipment.
96 XXX. DEFINITIONS
Whenever the following words are used in this policy, they shall have the meaning ascribed to them in this section:

Announcement” means the declaration of the intent to award a contract or a public works contract, by any means of transmission; including U.S. mailing, electronic mail, automated phone message or Internet posting. The effective date of an announcement by mail is the date that the announcement is deposited in the U.S. mail.

Award” means the acceptance of a bid or proposal by the City’s authorized representative.

Award date or date of award” means the date that the City Manager or his designee signs the documents constituting a public works contract, contract, or consultant agreement, and all conditions precedent to award have been satisfied.

Bidder” means a person who submitted a bid, proposal or other document seeking award of a contract, public works contract or consultant agreement.

Blanket Purchase Order” - A form used to obtain goods and services from vendors. It is different from a purchase order due to the fact that the City may not know specifically how much of the product will be consumed or where or when it will be consumed. Vendors agree to honor a price for a given product for a given period of time.

Brand Name” refers to a specific product in specifications for goods, services, or public works.

Change Order” - A change to an existing approved purchase order, contract, or agreement.

City’s Public Contracts Code” includes the City’s Charter, Municipal Code, Council policies, administrative regulations, past practices, current practices, or any portion of those laws, policies, regulations, or practices, pertaining to contracts or agreements between the City and other party.

Consultant” includes providers of expert or professional services and excludes providers of non-professional services.

Contract” includes a contract for goods, a contract for services, or a cooperative procurement contract unless otherwise stated.

Contract for Goods” means an agreement between the City and another party in which the City is the purchaser of articles, commodities, materials, supplies, equipment, or insurance.

Contract for Services” means an agreement between the City and another party in which the City is the purchaser of services, excluding consultant/professional services. It includes maintenance contracts.

Cooperative Purchasing” Two or more public entities combining their purchase requirements to obtain lower prices through volume buying and to reduce administrative costs.

Emergency” means an event, occurrence, or situation: (1) producing a great public calamity; 2) creating an immediate need to prepare for national or local defense or threatened conditions or disaster or an extreme peril to the safety of persons or property within the City; (3) causing or threatening a breakdown in machinery or an essential 97 public service or such a shortage of equipment or supplies so as to require immediate procurement in order to safeguard the public health, safety, or welfare; or (4) where following prescribed procedures would cause an undue delay in the procurement of the needed equipment, supplies, or services and would thereby threaten an essential, departmental operation affecting the public health, safety, or welfare.

Equipment” - Equipment includes moveable property which is relatively permanent and/or of significant value such as generators, pumps, machines, tools, vehicles and portable or removable devices. Items with a value under $5,000 will not be included unless included in the City’s Equipment Replacement Program.

Evaluation Team” means the City team (consisting of one or more members) assembled to review and evaluate bids and proposals.

General Requirements Contract” means a public works contract which contains a unit price book of detailed specifications and unit prices for typical tasks. Specific construction projects are not contemplated or authorized at the time of award. Work is authorized as required by a separate task order.

Goods” means any articles, commodities, materials, supplies, equipment, or insurance.

Job Order Contracts” means a firm, fixed price, indefinite quantity type contract designed to accomplish small to medium, multi-traded maintenance, repair and minor new construction projects and shall be subject to the same rules under this policy as applied to “public projects.”
Local Business Entity” means a business that meets all of the following criteria:

1. Is a business entity which is (a) contracting for services and has a principal place of business located within the Santa Ynez Valley, as identified on a City Business Certificate or other official documents; or (b) avendor making asale of goods, provided that such business or entity possesses a valid and current seller’s permit, or equivalent, issued by the State Board of Equalization, or its successor, which identifies the City of Solvang as the point of sale for all of its taxable retail sales within the City jurisdiction; and

2. Holds a City of Solvang Business Certificate that has been in effect for at least six months prior to the issuance of the request for bids/proposals.

Lowest Monetary Bidder” means the bidder who, in response to an invitation for bids, has submitted the bid with the lowest monetary cost to the City. When the City determines that it is appropriate, it may consider a combination of financial factors in determining the lowest monetary bidder, including the base bid price and the City’s reasonable estimates for maintenance costs, insurance costs, and/or other financial considerations. Further, the lowest monetary bidder shall also be determined with reference to the provisions of Section 1-8-17 relating to preferences for a Local Business Entity.

Lowest Responsible Bidder” means the bidder who submits the “lowest monetary bid” which is also “responsive” to the requirements of the invitation for bids and qualifies as a responsible” bidder. The determination of the lowest responsible bidder ( and each component of that determination) shall be made by the Purchasing Officer for contracts that are approved by the City Manager, and by the City Council for contracts it approves.

Post-Consumer Recycled Materials” - A finished material or product that has served its intended use and would not normally be disposed of as solid waste. Examples of post98 consumer recycled materials include, but are not limited to old newspaper, office paper, yard waste, steel, glass, aluminum cans, plastic bottles, oil, asphalt, concrete and tires. 99 Procurement Card” – A procurement card using one of the card brand networks (i.e. Visa, Discover, American Express) contracted by the City of Solvang with a banking vendor.

Public Project” means a project defined as a “public project” pursuant to Section 22002 of the California Public Contract Code, as amended from time to time.

Public Works” – Public Works includes, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds, and street, sewer, or other improvement work done under the direction and supervision or by the authority of any officer or public body of the state.

Purchasing Officer” means the City Manager or such person as shall be appointed Purchasing Officer by the City Manager pursuant to this policy. Notwithstanding the foregoing, the City Council shall exercise the authority of the Purchasing Officer with respect to any final determination involving the identification of the lowest responsible bidder for contracts presented to the City Council for action.

Purchase Order” - A form used to obtain goods and services from vendors. The purchase order spells out the specific items to be delivered, price, quantity, and delivery requirements, as well as terms and conditions, if not contained in an agreement.

Purchase Requisition” - A form ( paper or electronic) used by departments to request a purchase order.

Responsible Bidder” means a bidder that has demonstrated it is qualified to perform in accordance with the requirements identified inthe invitation for bids, based on the bidder’s experience, capacity, and integrity. Factors that may be considered, include, among others: (1) successful and timely completion of projects of similar scope, size, and quality; 2) any relevant licenses or certifications; (3) available resources to perform the project, including qualified personnel, property ( such as buildings, plants, equipment, and materials), and finances; ( 4) history of relevant claims and actions; and (5) performance history with the City, if applicable. If requested by the Purchasing Officer, a party which has submitted a bid shall provide supplemental information to the Purchasing Officer to permit the Purchasing Officer to determine whether the bidder qualifies as responsive.

Responsive” means a bid that is prepared and submitted by the bidder in accordance with the requirements of the invitation for bids, and this policy, with only those non-material deviations that may be waived, in the discretion of the City, without rendering the process unfair or negatively affecting the City’s interests.

Single Purchase” - Item and/or items purchased as a singletransaction.

State Law” means a California State Statute or implementing rule or regulation that is legally required and constitutionally permitted to be imposed on the City concerning a matter that is otherwise considered by the City to be a municipal affair.

Vendor” - A business that provides goods and or services to the City of Solvang. 100
Agenda Item Number: 4.g
Solvang City Council STAFF REPORT
PREPARED BY:

MEETING DATE:

SUBJECT:

Annamarie Porter, City Clerk
January 10, 2022

ADOPTION OF PROPOSED CITY COUNCIL MEETING SCHEDULE FOR
CALENDAR YEAR 2022
RECOMMENDATION:

Consider adopting the proposed City Council Regular meetings schedule for calendar year 2022.

DISCUSSION:

Staff is recommending approval of the proposed schedule of regularly scheduled City Council meetings for calendar year 2022. The schedule is provided in Attachment A.

FISCAL IMPACT:

There is no fiscal impact with this action.

ATTACHMENTS:

Attachment A – Schedule of Regular City Council Meetings for Calendar Year 2022 101
Solvang City Council
Meeting Schedule
2022

1. January 10th

2. January 24th

3. February 14th

4. February 28th

5. March 14th

6. March 28th

7. April 11th

8. April 25th

9. May 9th

10. May 23th

11. June 13th

12. June 27th
July 11th
July 25th
August 8th
August 22nd
September 12th
September 26th
October 10th
October 24th
November 14th
November 28th
December 12th
December 26th
Attachment A
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3rd Quarter 2021 Report of the Santa Ynez Valley Hotel Association (dba Visit the Santa Ynez Valley) – Submitted 12/ 21/ 21
VisitSYV is reporting activity since the 2nd quarter 2021 Report. This report is submitted to the City of Solvang, the City of Buellton and the Santa Barbara County Board of Supervisors, in accordance with the fulfillment of the provisions of the SYVTBID.

Financial
Beginning balance on July 1, 2021: $378,134
On July 1st, the TBID contract was renewed for 6 years, and the nightly assessment was increased .50 cents to $3.00
Q3 Income
TBID Funding received 7/1/ 21 through 9/ 30/ 21: $299,159 Membership income: $750
County Marketing Grant: $6,942
Discover the SYV reimbursement: $ 1,000
Marketing Co-op reimbursement: $ 8,463
IPW reimbursement: $86
Web Advertising: $15,000
Other types of income: $800
Total Income received 3rd quarter: $332,200
Expenses
Advertising/ Marketing: $114,489
Special Projects and Promotions: $ 9,600
Travel & Conventions: $ 28,632
Personnel Costs: $ 50,617
Contract Services: $ 11,910
Facilities/ Equipment: $2,191
Operations: $3,134
Other Types of Expenses: $346
Total Expenses 3rd quarter: $220,919
Ending Balance as of September 30, 2021: $489,415
Agenda Item 4.h
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Membership
We receive TBID funding from 35 lodging properties and currently have 234 total members that pay a basic membership fee of $250, a nonprofit fee of $125, and trade members where services are traded for membership such as wine, catering, photography.

Due to COVID- 19, the Board of Directors voted to waive existing membership fees from April 1, 2020 to November 1, 2021. We are, however, accepting dues for new memberships.

Marketing ( July 1, 2021 – September 30, 2021)
Santa Ynez Valley Marketing Campaign
DVA Advertising & PR Agency remains contracted as our advertising and public relations agency of record .

VisitSYV supplements the annual campaign with additional programs. Third quarter marketing results are detailed below.

Creative & Targeting
VisitSYV’s 2021 marketing program continued to showcase “ The Place to Be'' campaign which played off the diverse offerings to be found within the six communities of the Santa Ynez Valley. DVA and VisitSYV continued with content-forward Facebook ads and initiated the new “See You In” campaign. In Q3, we continued to target drive markets (Greater Los Angeles, Greater Bay Area, Inland California) and direct flight markets Phoenix, Las Vegas, Portland, Seattle, Dallas, Denver, Chicago).

Digital Key Takeaways
Overall traffic and clicks-to-book still look great over 2019 and 2020. Paid Facebook ads are also doing really well with the new “Top 10 Things to Do in SYV” ad as one of our best performing ads ever.

Google Search
CTR and CPC have improved quite a bit from 2019. Q3 CTR was up 19.4% and CPC dropped 19%.

Impressions: 65,034
Clicks: 4,311
CTR: 6.63%
CPC: $ 1.06
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YouTube
Performance has been level on the video campaign. The “Place to Be Together” and “Place to Be Relaxed” got the most views in Q3.

Impressions: 254,753
Views: 47,953
CTR: 18.82%
Cost per View: $0.06
Paid Facebook - Place to Be Brand Videos
Overall performance has improved on these campaigns since Q2. CTR is up 26%.

Impressions: 138,485
Link Clicks: 2,119
CTR: 1.21%
CPC: $ 1.53
Clicks to Book: 198
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Paid Facebook - Place to Be Retargeting
CTR was up 30% from Q2, and we are refreshing these ads in Q4 as well.

Impressions: 62,195
Link Clicks: 717
CTR: 1.15%
CPC: $ 1.95
Clicks to Book: 98
Paid Facebook - Content Ads (In-State)
CPC and CTR are still really strong here. The campaign also improved by a huge margin thanks to the new Top 10 ad, which has a CTR of 3.44% and CPC of $0.09.

Impressions: 823,775
Link Clicks: 18,067
CTR: 2.19%
CPC: $ 0.17
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Paid Facebook - Content Ads (Out-of-State)
The out-of-state content campaign has also gotten stronger thanks to the Top 10 ad.

Impressions: 163,357
Link Clicks: 1,824
CTR: 1.12%
CPC: $ 1.64
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Paid Facebook - See You In (Out-of-State)
CPC was up 13.5% compared to Q2. We are in the process of refreshing these.

Impressions: 277,839
Link Clicks: 3,496
CTR: 1.26%
CPC: $ 2.42
Clicks to Book: 157
Website Key Takeaways
In Q3, VisitSYV. com received 140,958 pageviews from 76,172 visitors. The site has also garnered 9,293 clicks to our members’ individual websites, and 2,447 clicks to book for VisitSYV hotels. The most popular pages on the site were as follows: (1) Homepage ( 2) Top 10 Things to Do in SYV Blog Article (3) Wine Tasting.

Clicks to book includes clicks off the lodging page, Jackrabbit booking bar searches, and clicks to the Jackrabbit lodging page from the advertising campaign landing pages. 108
Clicks to Book
Clicks to book from the lodging page were up 22.1% over Q3 2020.

Jackrabbit 2021 Booking Events
Q3 Jackrabbit searches were up 84.2% over 2020.

Book A Room: 1,818 booking searches (up 84.9%)
Events: 6,624 on booking results page
Book Direct: 1,717 clicks (up 129%)
Public Relations Campaign
PR efforts for Q3 focused on proactive outreach, coordination of six media visits, the Sunset Travel Awards entry, and content development for ESTO awards and IPW.

Total value of public relations media coverage for Q3 = $726,200* Total circulation of editorial coverage for Q3 = 2,517,500 Total unique visitors/ month of editorial coverage for Q3 = 1.45b PR value is calculated by multiplying the advertising rate times the size of the story, and then doubling that number to reflect the added value of editorial coverage Press Releases & Content:

ESTO Destiny Award Press Release
2021 Sunset Travel Awards Entry - Best Places to Go
IPW Destination Overview/ Intro
IPW Media Outreach Invitation
Media coordination, and completed media visits in Q3 included:

Kathy Condon, Palms Springs/ Rovology, visited Aug. 3-5 Jennifer Jory, PUNCH Magazine, visited Aug. 6-11
Justin Goldman, Hemispheres Magazine, visited Aug. 11-12 Cori Solomon, The Written Pallette, visited Aug. 18-20
Andy Harris, SoCal Restaurant Show, visited Aug. 18-20
Lindsay DeLong, Laguna Beach Living, visited Sept. 26-28 109
Notable Q3 Media Coverage:

Travel With Mia - A Romantic Weekend in the Santa Ynez Valley - July 5, 2021 Fodor’s Travel - One of America’s Best Culinary Destinations - July 29, 2021 Bloomberg News - California’s Best Kept Wine Secret - Aug. 12, 2021 Thrillist - 16 Fall Openings To Get Excited About - Aug. 19, 2021 San Diego Union-Tribune - Santa Ynez Valley Elevates Its Profile - Sept. 12, 2021 Los Angeles Times - Fresh in the Santa Ynez Valley - Sept. 23, 2021 @VisitSYV Social Media Stats
Facebook audience: 18,172 likes (a 3% YOY increase)
Twitter audience: 4,152 followers
Instagram audience: 11,770 followers (a 23% YOY increase) Print Advertising
2021 Santa Ynez Valley Destination Guide
VisitSYV distributed the 2021 printed destination guide in Q3 via the Solvang Visitors Center, the Buellton Visitors Center, the Santa Barbara Airport and the Santa Barbara Visitors Center. The guides are also distributed monthly to our Santa Ynez Valley hotels, museums, popular restaurants and retailers, and select Santa Barbara distribution points.

Los Olivos Chamber of Commerce Map
VisitSYV placed a 3.66" x5" ad in the Los Olivos Chamber of Commerce’s Annual Visitors Map, with 15,000 copies distributed to visitors via Santa Ynez Valley hotels, Los Olivos kiosks, and Santa Barbara area hotels.

California Road Trips Guide
An annual print publication produced by Visit California, VisitSYV purchased a listing as part of the Central Coast Tourism Council’ s Co-Op within the guide. The print publication has a 1 million circulation through the following distribution points: Parent Magazine (200,000 – California, Phoenix/ Scottsdale, Nevada, Washington; Travel + Leisure (75,000 – California, Phoenix/ Scottsdale); Exposure on VisitCalifornia. com through Nxtbook Media digital edition which includes a link to VisitSYV. com ; 400,000 direct to consumers, fulfillment upon request, at key destinations. Distribution locations include California Welcome Centers, CVBs and Visitor Centers.
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Trade Shows
IPW
VisitSYV partnered with the Buellton Visitors Bureau for 3 days of intensive in-person travel buyer & media appointments at IPW in Las Vegas Nevada, September 18-22. IPW is the travel industry's premier international marketplace and the largest generator of travel to the U.S. In just three days of pre -scheduled business appointments, thousands of delegates representing U.S. travel organizations from every region of the USA and international and domestic buyers and media from 70+ countries meet face-to-face to conduct future travel business to the USA. Buyers & media received flash drives with Santa Ynez Valley lodging options, press releases, itineraries, story ideas and photography for their catalogues. Danielle Laudon Ruse and Kathy Vreeland held over 25 appointments on the showroom floor while Shelby Sim took an additional 20 appointments on Monday in the media marketplace, meeting with travel journalists from around the globe.

This year's show was a major success, with renewed interest in travel to California’ s Central Coast, and we look forward to attending the next IPW in Orlando, Florida in June 2022.

Onsite Activations
Telluride Wine Festival
VisitSYV attended the Telluride Wine Festival as the first destination marketing organization to represent an entire region at the esteemed wine festival, held September 23-26 in Telluride, Colorado. Shelby Sim and Danielle Laudon Ruse poured wine from 4 local vintners while Shelby led two panel discussions showcasing the Santa Ynez Valley wine region. Staff interacted with over 800 consumers and generated new and renewed interest in visitation.

Staff & Board Development
With some developmental and educational workshops and summits still postponed, staff continue to attend online educational sessions and webinars, hosted by destination marketing expert brands including CrowdRiff, Adara, U.S. Travel Association, Civitas, California Hotel & Lodging Association, among many others. In-person summits are detailed below.
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Education
Destinations International
VisitSYV President & CEO, Shelby Sim, and Vice President of Marketing, Danielle Laudon Ruse, attended Destinations International, July 13-15 in Baltimore, Maryland. Tourism and destination marketers from almost a dozen countries attended the in-person event to discuss tourism trends and covid-19 recovery.

ESTO
VisitSYV President & CEO, Shelby Sim, and Vice President of Marketing, Danielle Laudon Ruse, attended ESTO Educational Seminar for Tourism Organizations), August 15-17, in Los Angeles, California. The 3-day tourism conference is the premier annual learning and knowledge- sharing forum produced by the U.S. Travel Association for destination marketing organizations. During the event, VisitSYV received national recognition, as “ The Place To Be” advertising campaign was recognized by the U.S. Travel Association as the nation’ s top digital tourism campaign, receiving a Destinations Council Destiny Award in the Digital Campaign category at the conference’ s closeout event on Tuesday, August 17th. Visit the Santa Ynez Valley was selected the winner from three finalists and prevailed over Visit Savannah and San Francisco Travel to take home top honors as the nation’ s best digital campaign focused on tourism.

Grants & Special Projects 3rd Quarter 2021
The purpose of our grants program continues to be to assist with publicity and outreach for valley events which encourage overnight stays. Primary consideration goes to events which occur mid -week (Sunday to Thursday) and/ or in off-season. Special projects include community improvement. Due to COVID-19, most 3rd quarter fundraisers and events were cancelled or postponed.

Pride Day in the SYV: $ 500
Mental Health Assoc. Santa Barbara County: $250
One Mind Mental Health: $250
Santa Rita Hills Winegrowers Alliance: $1,500
Solvang Danish Days Foundation $5,000
Los Alamos Theater Group: $1,000
North County Santa Barbara Econ Alliance: $500
Polo Classic, produced by People Helping People: $500
For a total of $9,500
112
Collaborations with Santa Barbara County DMOs and other organizations VisitSYV collaborates actively with other county destination marketing organizations, including Solvang IDK, Buellton Visitors Bureau, the Santa Barbara County Vintners Association, Visit Santa Barbara, the Los Olivos, Buellton, Solvang, and Santa Ynez Chambers as well as the Los Alamos Business Association, and The Chumash Foundation.

Public comment
Members of the board and the President continue to be called upon to make written and/or verbal public comment on several hotel and tourism related issues. Each question is raised on a board agenda and voted upon by the board, or authorized by the Chairman, before comment is made. Ongoing participation with our water challenges, cannabis, wine ordinance and special events ordinance hearings is anticipated by President, Shelby Sim, and, when needed, Linda Johansen, Chairman.

Organization
In July, Vice Chairperson, Sherrie FitzGerald of the Alisal Ranch had to step down from the board for personal reasons. She was replaced on the board by Kathleen Cochran, General Manager of the Alisal Ranch. Jonathan Rosenson, Owner, Mirabelle Inn, moved from Secretary to Vice Chairperson. Jim Flagg, Owner, The Hampton Inn & Suites, accepted the position of Treasurer. Stormie Strickland accepted the position of Secretary.

The board returned to meeting in person, monthly, normally the 2nd Thursday of the month, 9:00 a.m. at The Chumash Casino. The board consists of nine individuals, seven of which are from the hotel industry and the other two are an at-large representation of the membership base. 113
Staff & Board of Directors
President & CEO - Shelby Sim
Vice President of Marketing - Danielle Laudon Ruse
The board members are:

Chairperson – Linda Johansen, Owner, Pea Soup Andersen’ s Inn, Buellton Vice Chairperson – Jonathan Rosenson, Owner, Mirabelle Inn, Solvang Secretary – Stormie Strickland, Director of Sales, Hotel Corque, Solvang Treasurer – Jim Flagg, Owner, Hampton Inn & Suites, Buellton Kathleen Cochran, General Manager, The Alisal Ranch, Solvang Budi Kazali, Owner, Ballard Inn, Ballard
Kimberly Walker, Owner, Skyview Los Alamos, Los Alamos
Louise Smith, Owner, Louise’s Kitchen Table, Solvang
Will Henry, Owner, PICO Restaurant, Los Alamos
Respectfully submitted by:

Shelby Sim, President and CEO
Santa Ynez Valley Hotel Association, dba Visit the Santa Ynez Valley [email protected]
PO Box 633, Solvang, CA 93464
www.visitsyv.com, 805-451-6038
114
Agenda Item Number: 5
Solvang City Council STAFF REPORT
PREPARED BY: Jason Banta, Accounting Supervisor
jasonb@cityofsolvang. com
MEETING DATE: January 10, 2022
SUBJECT: FISCAL YEAR 2020-2021 FINANCIAL HIGHLIGHTS AND ANNUAL COMPREHENSIVE

FINANCIAL REPORT
RECOMMENDATION:

1. Review City financial highlights for the year ending June 30, 2021; and

2. Accept into the record the 2020- 21 Annual Comprehensive Financial Report, as presented by Ahmed Badawi, CPA.

DISCUSSION:

Annually, the Administration Department and Finance Division gives an update to City Council highlighting the fiscal condition of all funds following the end of each fiscal year. The table on the next page identifies the year- end fund balances and the net increase or decrease from the prior year.

Fund
FY 2020- 21
Ending Balance
FY 2019- 20
Ending Balance
Net Increase/
Decrease
General Fund $ 11,663,928 $ 10,248,158 $ 1,415,770
Government Impact Fees $ 1,600,302 $ 2,114,547 $ ( 514,245) Traffic Safety $ 1,992 $ 4,795 $ ( 2,803)
Gas Tax $ 260,127 $ 149,546 $ 110,581
Local Transportation $ 318,690 $ 198,074 $ 120,616
Measure A $ 985,970 $ 550,458 $ 435,512
Skytt Mesa LLMD $ 352,137 $ 334,276 $ 17,861
Capital Projects $ ( 23,823) $ ( 22,173) $ ( 1,650)
Water $ 12,496,524 $ 12,734,606 $ ( 238,082)
Wastewater $ 8,500,496 $ 8,022,128 $ 478,368
Transit $ 2,203,954 $ 2,234,398 $ ( 30,444)
General Fund
The increase in General Fund’ s ending balance can be attributed primarily to the increase in taxes, a result of the COVID 19 Pandemic closures ending. The chart on the next page identifies the key changes between FY 2019- 20 and 2020- 21.
115
Fiscal Year Comparison
General Fund 2020-21 2019-20 Over/( Under)
Revenues
Taxes $ 7,515,581 $ 6,542,010 $ 973,571
Special Assessments $ - $ - $ -
Licenses and Permits $ 128,951 $ 126,463 $ 2,488
Fines and Forfeits $ 7,494 $ 4,164 $ 3,330
Intergovernmental $ 230,439 $ 160,796 $ 69,643
Interest $ 6,846 $ 254,509 $ ( 247,663)
Charges for Services $ 758,056 $ 704,478 $ 53,578
Miscellaneous $ 54,205 $ 135,672 $ ( 81,467)
TOTAL $ 8,701,572 $ 7,928,092 $ 773,480
Expenditures 2020-21 2019-20 Over/( Under)
General Government $ 1,803,038 $ 2,466,880 $ ( 663,842) Public Safety $ 1,855,060 $ 2,023,362 $ ( 168,302)
Culture and Recreation $ 1,504,503 $ 2,070,569 $ ( 566,066) Community Development $ 747,382 $ 621,551 $ 125,831
Public Works $ 1,280,047 $ 1,340,299 $ ( 60,252)
Capital Outlay $ 271,944 $ 694,822 $ ( 422,878)
TOTAL $ 7,461,974 $ 9,217,483 $ ( 1,755,509)
As of June 30, 2021, the General Fund had a total fund balance of $11,663,928. The Fund Balance Policy Revised in 2013, states for emergency reserves, fifty percent of the operating expenditures will be set aside. As of June 30, 2021, the General Fund balance committed for unexpected events is currently at $ 4.8 million, which is more than the 50% of the $8.6 million budgeted for projected expenditures in FY 2021- 22.

The General Fund designations are as follows:

Unassigned $ 6,179,842
Committed $ 4,830,633
Nonspendable* $ 627,138
Restricted $ 26,315
TOTAL $ 11,663,928
Includes encumbrances carried over from Fiscal Year 2019-20 After accounting for designated reserves and other items, the General Fund has an unassigned balance of $6.2 million. In the coming months as part of the annual budget process, Staff will be presenting options for using a portion of those funds for our Capital Improvement Plan projects, and to pay down some of our outstanding liabilities including:

Other Post- Employment Benefits ( OPEB)
Unfunded Pension Liability ( CalPERS)
116
Enterprise Funds
The ending balances for the Enterprise Funds are shown below which include the net investment in capital assets. The Water fund decreased its Net Position by approximately $ 238K. The Wastewater Fund had an increase to its overall net position by $ 478k due to decreased operating costs and the beginning phase of the WWTP upgrade not being completed until FY 2021- 22. In the Wastewater fund, there is a total of $1.9M in encumbrances being carried over into Fiscal Year 2021- 22 from 2020- 21 for completion of the Phase 1 upgrade of the Waste Water Plant. The Transit Fund decreased due to increased Capital Expenditures.

The unrestricted amounts and carried over encumbrances for the Enterprise Funds are shown in the charts below which does not include the net investment in capital assets.

Fun
d # Fund
FY 2020- 21
Unrestricted Net
Position
FY 2019- 20
Unrestricted Net
Position
Net
Increase/ Decrease
500 Water 6,853,018 6,995,047 $ ( 142,029)
501 Wastewater 3,031,353 3,152,961 $ ( 121,608)
502 Transit 1,761,016 1,684,596 $ 76,420
Encumbrances carried over from FY 2020- 21 to FY 2021-22 500 Water $ 204,899
501 Wastewater $ 1,923,621
502 Transit $ 164,867
Our independent auditor, Badawi & Associates, CPA, performed the City of Solvang’ s audit for the 2020- 21 financial records. Mr. Badawi & Associates conducts their audit in accordance with generally accepted auditing standards as they pertain to Government Auditing Standards issued by the Comptroller General of the United States. In their opinion our financial statements present fairly, in all material aspects, the financial position of the City of Solvang as of June 30, 2021.

Fund
Fund
FY 2020- 21
Ending
Balance
FY 2019- 20
Ending
Balance
Net
Increase/ Decrease
500 Water 12,496,524 12,734,606 238,082)
501 Wastewater 8,500,496 8,022,128 478,368
502 Transit 2,203,954 2,234,398 30,444)
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Once the audit is completed, the Finance Division prepares the Annual Comprehensive Financial Report for that fiscal year. The document includes the financial statements and accompanying notes prepared by the auditor. The public is encouraged to take the time to read through this document as it defines our financial and economic status on a variety of levels. It also fulfills our responsibility to report all financial conditions to the public as custodians of their funds.

ALTERNATIVES:

None
ATTACHMENTS:

A. Letters from Badawi & Associates, CPA

1. Appropriations Limit

2. Independent Auditor’ s Report
B. Comprehensive Annual Financial Report
118
City of Solvang
Solvang, California
Independent Accountants’ Report on
Agreed- Upon Procedures Applied to
Appropriations Limit Schedule
For the year ended June 30, 2021
Attachment A
119
120
INDEPENDENT ACCOUNTANTS’ REPORT
To the Honorable Mayor and City Council
of the City of Solvang
Solvang, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Solvang (City) for the fiscal year ended June 30, 2021. The City’s management is responsible for the accompanying Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution.

Additionally, the League of California Cities ( as presented in the publication entitled Agreed- upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and our findings are described below:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ended June 30, 2021, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’ s limit to the total adjustments, and agreed the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures. 121
2 We were engaged by the City to perform this agreed- upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed- upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited.

Badawi & Associates, CPAs
Berkeley, California
January 4, 2022
122
City of Solvang
Appropriations Limit Schedule
For the year ended June 30, 2021
Amount Source
A. Appropriations Limit FY 2019- 2020 $ 20,087, 490 Prior year schedule B. Calculation factors:

1. Population increase 1.0373 State Department of Finance

2. Inflation increase ( deflation decrease) 0.9977 State Department of Finance

3. Total adjustment factor 1.0349 B1 * B2
C. Annual adjustment increase ( decrease) 701, 339 [( B3- 1)*A)] D. Other adjustments:

Loss responsibility (-)- N/ A
Transfers to private (-)- N/ A
Transfers to fees (-)- N/ A
Assumed responsibility (+)- N/ A
E. Total adjustments 701, 339 ( C+D)
F. Appropriations Limit FY 2020- 2021 20,788, 829$ ( A+E) 3 123
City of Solvang
Notes to Appropriations Limit Schedule
For the for the year ended June 30, 2021
4 1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution ( the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes.

Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

2. METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986- 1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

3. POPULATION FACTORS
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the County where the jurisdiction is located. The factor adopted by the City for fiscal year 2021 represents the annual percentage change in population for the City.

4. INFLATION FACTORS
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Solvang for fiscal year 2021 represents the percentage growth in the State of California per capita personal income cost of living during 2020.

5. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. No adjustments were required for the City of Solvang for the fiscal year ended June 30, 2021.
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City of Solvang
Solvang, California
Report on Internal Control over Financial
Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements
Performed in Accordance with Government
Auditing Standards
For the year ended June 30, 2021
125
126

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and City Council
of the City of Solvang
Solvang, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Solvang, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 4, 2022.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’ s internal control over financial reporting ( internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’ s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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2 To the Honorable Mayor and City Council
of the City of Solvang
Solvang, California

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’ s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’ s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’ s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
January 4, 2022
128
AAnnuall Comprehensivee
FFinanciall Report
Fiscal Year 2020-2021
Attachment B
129
130
Solvang, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Prepared by:

Finance Department
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132
City of Solvang
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION:

Table of Contents ....................................................................................................................................................... i Transmittal Letter ...................................................................................................................................................... 3 GFOA Certificate ...................................................................................................................................................... 7 Organization Chart .................................................................................................................................................... 8 List of Elected and Appointed Officials .................................................................................................................. 9

FINANCIAL SECTION
Independent Auditor’ s Report ............................................................................................................................. 13 Management’ s Discussion and Analysis ............................................................................................................ 17 Basic Financial Statements:

Government- Wide Financial Statements:

Statement of Net Position .......................................................................................................................... 34 Statement of Activities ............................................................................................................................... 36 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ......................................................................................................................................... 42 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ................................................................ 43 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ 44 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities .................................................................................................................. 45 Proprietary Fund Financial Statements:

Statement of Net Position .................................................................................................................... 48 Statement of Revenues, Expenses and Changes in Net Position ................................................... 50 Statement of Cash Flows ..................................................................................................................... 52 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position .................................................................................................. 56 Statement of Changes in Fiduciary Net Position ............................................................................. 57 Notes to Basic Financial Statements ................................................................................................................ 61 i
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City of Solvang
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents, Continued
Page
Required Supplementary Information ( Unaudited):

Defined Benefit Pension Plan:

Schedule of Proportionate Share of the Net Pension Liability ............................................................ 91 Schedule of Contributions ........................................................................................................................ 91 Other Postemployment Benefits Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................... 92 Budgets and Budgetary Accounting ............................................................................................................... 93 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ........................................................................................................................................ 94 Impact Fee Special Revenue Fund ..................................................................................................... 95 Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ........................................................................................................................ 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................... 102 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Traffic Safety Special Revenue Fund ............................................................................................... 104 Gas Tax Special Revenue Fund ........................................................................................................ 105 Local Transportation Special Revenue Fund .................................................................................. 106 Measure A Special Revenue Fund ................................................................................................... 107 Skytt Mesa LLMD Special Revenue Fund ...................................................................................... 108 Capital Projects Fund ......................................................................................................................... 109 STATISTICAL SECTION ( Unaudited)
Financial Trends:

Net Position by Component ................................................................................................................................. 113 Changes in Net Position ........................................................................................................................................ 114 Fund Balances of Governmental Funds .............................................................................................................. 116 Changes in Fund Balances of Governmental Funds ......................................................................................... 117 Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property ................................................................ 118 Direct and Overlapping Property Tax Rates ...................................................................................................... 119 Principal Property Taxpayers – Top Ten Payers ............................................................................................... 120 Property Tax Levies and Collections .................................................................................................................. 121 Transient Occupancy Tax – Principal Payers and Other Data ........................................................................ 122 Water Rates ............................................................................................................................................................. 123 ii
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City of Solvang
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents, Continued
Page
STATISTICAL SECTION ( Unaudited), Continued
Water Revenue Concentration Data .................................................................................................................... 124 Principal Water Sale Purchasers – Top Ten ....................................................................................................... 125 Debt Capacity Information:

Ratios of Outstanding Debt by Type ................................................................................................................... 126 Direct and Overlapping Governmental Activities Debt .................................................................................. 127 Legal Debt Margin Information ........................................................................................................................... 128 Pledged-Revenue Coverage ................................................................................................................................. 129 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................ 130 Principal Employers for City of Solvang ............................................................................................................ 131 Operating Information:

Full-Time Equivalent City Government Employees by Function/ Program ................................................. 132 Operating Indicators by Function/ Program ...................................................................................................... 133 Capital Asset Statistics by Function/ Program .................................................................................................. 134 iii
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iv 136

INTRODUCTORY SECTION
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January 10, 2022
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Solvang:

The City follows a policy of preparing a complete set of financial statements in conformity with U.S. generally accepted accounting principles after the end of each fiscal year. This report is published to fulfill that policy for the fiscal year ended June 30, 2021.

Management of the City of Solvang assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that the City has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the City’s financial statements are free of material misstatements.

The firm of Badawi & Associates, Certified Public Accountants has issued an unmodified independent auditor’s report on the City of Solvang’ s financial statements for the fiscal year ended June 30, 2021. The independent auditor’s report is located at the front of the financial section of this report.

Management’ s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of the City of Solvang
Solvang, meaning “ Sunny Field,” was founded in 1911 by a group of Danish educators from the Midwest who were in search of a site for a Danish- type folk school. They liked what they saw and envisioned the location of the potential town, nestled between the Santa Ynez and San Rafael mountain ranges as an ideal place to launch the school and where settlers could develop a Danish Colony that we now know as Solvang. Although Solvang has since developed into one of California’ s main tourist attractions, its many Danish- American residents continue to perpetuate their Danish heritage as seen by the architectural style in the downtown tourist area. The City is located inland along the Central Coast, some 45 miles north of Santa Barbara, in the historic Santa Ynez Valley.

The City was incorporated on May 1, 1985. It subsequently transitioned from a General Law City to a Charter City in November 2006. Becoming a “ Charter City” means we have more “ local home rule” authority than cities that incorporate under the “general laws” of the State of California.

The Charter is the City’ s “ Constitution,” and any changes must be approved by the voters. 139
The City operates under the “ Council-Manager” form of government. Policy making and legislative authority are vested in the City Council consisting of the Mayor and four other elected Council members. The Council is responsible for, among other matters, passing ordinances, adopting the City Budget, appointing committees, and hiring the City Manager and City Attorney.

The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the daily operations of the City, and appointing other employees and otherwise managing daily operations of the City. The Council members are elected to four-year staggered terms and with the election of 2008, we transitioned from an appointed Mayor to an elected Mayor with a two-year term, who serves as an equal member of the Council.

The City of Solvang provides a full range of municipal services, including contracted police services, the construction and maintenance of City streets, storm drains, bridges and similar infrastructure type assets, park maintenance and community recreation activities. Water, wastewater and transit services are provided through the use of an enterprise fund or business- type fund structure.

The annual budget serves as the foundation for the City of Solvang’ s financial planning and control system. Once a final draft budget is achieved, it is presented to the City Council. The Council holds public hearings on the proposed budget and ultimately adopts a formal budget. The budget is adopted by fund, department, program, and object. The Council periodically reviews during the fiscal year the City’s actual financial activity in relationship to the original budget, and as necessary amends the original budget to reflect changing conditions.

The general fund’ s budgetary comparison, deemed a major fund under the new reporting standards, is presented as required supplementary information in a separate section of this report immediately following the notes to the financial statements. For the City’ s other governmental- type funds with adopted budgets, a budget to actual comparison schedule is presented as optional information in the section of this report containing combining statements and individual fund schedules.

Local Economy
The City’ s economy largely depends on tourism, which generates a more than half of the City’ s General Fund revenues. Major attractions for visitors to the City include the City’s Danish themed village with unique shops, inns, bakeries, European style streets and architecture, cafes, local wineries, art galleries, golf courses, equestrian and other livestock production, the Santa Ines Mission, and the Elverhoj Museum of History and Art and special events. 140
This year the City saw an increase in property tax revenue of 4.2%, and sales tax revenues increased by 19.2%. Our top three sales tax generators by business category for FY 2020- 21 are retail, food services, and manufacturing, in that order. Our largest General Fund revenue source, Transient Occupancy Tax ( TOT) increased by 18.6%, and the occupancy rate was up by 4.1%.

While the trends in revenues showed significant increases in percent terms, it should be noted that the Fiscal Year ending June 30, 2021 is compared to the prior year when the State economy and tourism were shut- down, which resulted in significant losses for Solvang. The City lost approximately $2M in total revenues compared to normal levels. Some of this loss was replenished by the funding from the American Rescue Plan, which will total approximately $ 1.3M by the end of the 2021-22 Fiscal Year.

The City is also mindful of costs associated with increasing pension and retiree health liabilities, and growing regulations for stormwater management, requiring additional resources for implementation. The City continues to take a very conservative approach in the budgeting process.

We strive to operate within current revenue streams and are careful to minimize use of reserves.

Staff has an awareness of the challenges we face and continues to be conservative in their spending.

Long Term Financial Planning and Major Initiatives
This year the City completed about $1.6 million in capital projects. For fiscal year ending 2021- 22, the City has budgeted approximately $ 3.8 million for capital projects, mostly for wastewater, and public works. An additional $60.2 million in capital projects are included in the City’s Ten Year Capital Improvement Plan. These projects include about $ 17.5 million in public works projects, $17 million for wastewater system improvements, $13 million for water and $3.2 million for sewer improvements.

The major initiative planned for FY 2021- 22 is the South Alisal Road Reconstruction Project, which will be followed by various General Fund, Measure A and Road Maintenance and Rehabilitation ( RMRA) projects.

The General Fund ended fiscal 2020- 21 with a fund balance of approximately $ 11.7 million. Of that fund balance, $ 4.8 million is committed for emergency reserves, and approximately $ 6.2 million remained unassigned. There is approximately $ 3.5 million available in Gas Tax, Impact Fees, Traffic Safety, Measure A, and Local Transportation funds, which will be used for future projects; mainly street infrastructure, improvements, maintenance and sidewalk projects.

Relevant Financial Policies
The City Council adopted a Fund Balance Policy in 2013 that sets the City’ s General Fund balance committed for emergency contingencies at 50% of the current year operating budget and is to be adjusted annually.
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Starting in the 2019-20 Fiscal Year, the City reviews and adopts financial policies annually as part ofthe budget adoption process. The policies include strategic goals, budget monitoring, long-term financial planning, fund balance reserve, capital improvement program funding, and debt financing.

Awards and Acknowledgements
The Government Finance OfficersAssociation ( GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Solvang forits annual comprehensive financial report ( ACFR) forthe fiscalyear ended June 30, 2020. The City has received this award for 31 of the last 32 years. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable legal and program requirements.

A Certificate of Achievement is valid for a one- year period only. We believe that our current annual comprehensive financialreport continues to meet the Certificate ofAchievement Program' s requirements and we are submitting it to the GFOA to determine its eligibility for another ce1tificate.

There are a number of benefits from participating in this program beyond simply gammg recognition forour effo1ts. We believe that by continually striving forexcellence in meeting the program standards and goals, we have the ability to produce quality reports as well as receive comments forimprovements from other municipal financeprofessionals. This allows us to gain a fresh" perspective and continually improve in our rep01ting for the benefit of the City and the public at large.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire Finance division staff We are very proud of our teamwork here and would like to express our appreciation to all members ofthe departments who assisted and contributed to the preparation of this report and their effort throughout the year to ensure the integrity of the financial records.

Respectfully submitted,
Xenia Bradford
City Manager
142
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Solvang
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
143
C
a,
N ·-.., ·-
u
144
City of Solvang
List of Elected and Appointed Officials
As of June 30, 2021
Elected Officials
Mayor Charlie Uhrig
Mayor Pro Tem Claudia Orona
Council Member Robert Clarke
Council Member Jim Thomas
Council Member Mark Infanti
Appointed Officials
City Manager Xenia Bradford
City Attorney David Fleishman
Public Works Director/ City Engineer Matthew van der Linden 145
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146

FINANCIAL SECTION
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148
INDEPENDENT AUDITOR’ S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Solvang
Solvang, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Solvang, California City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’ s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’ s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express nosuch opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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To the Honorable Mayor and Members of the City Council
of the City of Solvang
Solvang, California

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’ s discussion and analysis, budgetary comparison information, pension and OPEB information on pages 17-29 and 91-95, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’ s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules on pages 99 to 109 and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, and budgetary comparison schedules on pages 99 to 109 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, and the budgetary comparison schedules on pages 99 to 109 are fairly stated in all material respects in relation to the basic financial statements as a whole. 150
To the Honorable Mayor and Members of the City Council
of the City of Solvang
Solvang, California

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 4, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
January 4, 2022
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Management’s Discussion and Analysis
As management of the City of Solvang, we offer readers of the City of Solvang’ s financial statements, this narrative overview and analysis of the financial activities of the City of Solvang for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-6 of this report.

Financial Highlights
x The general fund reported a fund balance of $11.7 million at the end of the 2021 fiscal year; an increase of approximately $ 1.4 million or 10% above the fiscal year 2019- 2020 balance. x Citywide, the total net position increased by $1 million or 2% higher than 2019- 2020 after conducting all operations and programs. The net position totaled $47.8 million dollars at year-end. Of that amount, $19.9 million (the unrestricted net position) may be used to meet the City’ s ongoing obligations and operating expenses for the next fiscal year. x The City’s Governmental activities reported a net position of $24.6 million dollars. Of the

24.6 million dollars, $8.3 million remains unrestricted and available. x Overall, Citywide revenues from governmental activities, grants and taxes increased approximately $1 million compared to the 2019-2020 fiscal year. x Impact Fees ended FY 2020-2021 with a fund balance of $ 1.6 million; a decrease of approximately $514 thousand from FY 2019-2020.
x The Proprietary funds ended the fiscal year with a net position of $23.2 million (including the funds’ net investment in capital assets).
x The City’s other non-major governmental funds ended FY 2020-2021 with a fund balance of

1.9 million, an increase of $700 thousand over FY 2019-20. The increase is due in part to increases in Measure A and Highway Users Tax funds received in FY 2020-21. 153
Management’s Discussion and Analysis
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City of Solvang’ s basic financial statements. The City of Solvang’ s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.

Government-wide Financial Statements. The government- wide financial statements are designed to provide readers with a broad overview of the City of Solvang’s finances, in a manner similar to a private-sector business.

The statement of net position presents financial information on all of the City of Solvang’ s assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Solvang is improving or deteriorating.

The statement of activities presents information showing how the City of Solvang’ s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods ( e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Solvang that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business- type activities). The governmental activities of the City of Solvang include general government, public safety, highways and streets, planning and economic development, and culture and recreation. The business-type activities of the City of Solvang include water, wastewater and transit operations.

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Solvang, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Solvang can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 154
Management’s Discussion and Analysis
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities inthe government-wide financial statements. However, unlike thegovernment-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’ s nearterm financing requirements.

Because the focus of governmental funds is narrower than that of the government- wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements.

By doing so, readers may better understand the long-term impact of the government’ s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Solvang maintains eight individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, and the impact fee fund, which are considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The City of Solvang adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 42-45 of this report.

Proprietary Funds. The City of Solvang maintains two different types of proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Solvang uses enterprises funds to account for its water, wastewater and transit operations. Internal service funds are an accounting device used toaccumulate and allocate costs internally among the City of Solvang various functions. The City of Solvang uses an internal service fund to account for the replacement of its fleet of vehicles and major equipment. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, wastewater and transit operations, all of which are considered to be major funds of the City of Solvang. Conversely, the internal service fund is a single presentation in the proprietary fund financial statements. 155
Management’s Discussion and Analysis
The basic proprietary fund financial statements can be found on pages 48-53 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government-wide financials statements because the resources of those funds are not available to support the City of Solvang own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The City of Solvang maintains two types of fiduciary funds. The Agency fund reports resources held by the City of Solvang in a custodial capacity for individuals, private organizations, and other governments. The City of Solvang maintains one Agency fund on behalf of the Santa Ynez Valley Tourism Business Improvement District (District). The City collects the revenue from the local hotels, and then remits the funds to the District. The City also maintains a retiree medical trust fund used to prefund eligible retiree medical post-employment benefits.

The fiduciary fund financial statements can be found on pages 56-57 of this report.

Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government- wide and fund financial statements. The notes to the financial statements can be found on pages 61-87 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the general and impact fee funds budget to actual comparisons, funding progress on the City’s other post-employment benefits ( OPEB), the City’s proportionate share of the net pension liability in regards to the California Public Employees Retirement System (CalPERS) cost sharing pool of which the City is a member, and the City’ s pension plan employer contributions. Required supplementary information can be found on pages 91-95 of this report.

The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on the City’ s pension liability. Combining and individual fund statements and schedules can be found on pages 100-103 of this report.

Government-wide Overall Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government’ s financial position. In the case of the City of Solvang, assets and deferred outflows of resources exceeded liabilities by $47,766,700, at the close of the most recent fiscal year. 156
Management’s Discussion and Analysis
City of Solvang Net Position
By far, the largest portion of the City of Solvang’ s net position ( 51%) reflects its investment in capital assets ( e.g. land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City of Solvang uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending.

An additional portion of the City of Solvang’ s net position (7.4%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $20 million is unrestricted and may be used to meet the government’ s ongoing obligations to its citizens and creditors.

At the end of the current fiscal year, the City of Solvang is able to report positive balances in all reported categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year.

Total
Percentage
Change
Assets: 2020 2021 2020 2021 2020 2021 2020-2021
Current and other Assets 15,915,698$ 16,967,088$ 13,276,945$ 14,197,330$ 29,192,643$ 31,164,418$ 7% Capital Assets 12,696,479 12,740,666 11,521,718 11,555,587 24,218,197 24,296,253 0% Total Assets 28,612,177$ 29,707,754$ 24,798,663$ 25,752,917$ 53,410,840$ 55,460,671$ 4% Deferred outflows of
resources:

Pension plan contributions
and other pension deferrals 1,066,872$ 871,391$ 355,625$ 290,465$ 1,422,497$ 1,161,856$ - 18% Current liabilities 558,521$ 679,920$ 358,980$ 979,693$ 917,501$ 1,659,613$ 81% Noncurrent liabilities 4,937,674 4,747,104 1,683,233 1,667,249 6,620,907 6,414,353 - 3% Total Liabilities 5,496,195$ 5,427,024$ 2,042,213$ 2,646,942$ 7,538,408$ 8,073,966$ 7% Deferred inflows of resources:

Pension plan timing differen 362,823$ 586,395$ 120,943$ 195,466$ 483,766$ 781,861$ 62% Net Position:

Invested in capital assets 12,821,492$ 12,740,666$ 11,521,718$ 11,555,587$ 24,343,210$ 24,296,253$ 0% Restricted 3,435,769 3,545,533 - - 3,435,769 3,545,533 3% Unrestricted 7,562,770 8,279,527 11,469,414 11,645,387 19,032,184 19,924,914 5% Total Net Position 23,820,031$ 24,565,726$ 22,991,132$ 23,200,974$ 46,811,163$ 47,766,700$ 2% Table A-1
City of Solvang Net Position
Governmental Activities Business- type Activities Total 157
Management’s Discussion and Analysis
The City of Solvang’ s overall net position increased by $900 thousand from the prior fiscal year.

The reasons for this overall increase are discussed inthe following sections for governmental and business-type activities.

Governmental Activities. Taxes are the primary source of revenue for governmental activities and account for 80% of all revenues. The tax category includes property tax, sales tax, transient occupancy tax (TOT) and other taxes.

Solvang is a tourist community and the largest portion of its tax revenues come from transient occupancy tax (local hotel tax). These taxes generate 43.9% of all governmental- type revenues.

In FY 2020-21, local hotel tax increased approximately $640 thousand or 18.6% from fiscal year 2019-20.
158
Management’s Discussion and Analysis
The City’ s governmental- type operating expenses consist of public safety, culture and recreation, public works, general government, and community development.

When all operations were concluded, the governmental activities function generated an increase of $746 thousand in net position for FY 2020- 21. In FY 2019- 20, there was a decrease of $1.28 million.
159
Management’s Discussion and Analysis
Business-type Activities. For the City of Solvang’ s business-type activities, the City’s net position increased, ending the year with a balance of $23,200,974. The increase innet position for business-type activities (water, wastewater, and transit funds) was approximately $210 thousand from the prior fiscal year. Water revenue increased by 5.92% due to an increase in consumption, primarily in exterior landscape usage. Wastewater revenue decreased by 0.22% due primarily to less connection fees. Water expenses increased slightly as the staff continue to maintain and replace aging infrastructure. In addition, the cost of water supply increased for all sources as power and chemical costs increased. Wastewater expenses decreased as staff work to maintain and replace aging infrastructure, and implement new WWTP upgrades.

Financial Analysis of Governmental Funds
As noted earlier, the City of Solvang uses fundaccounting toensure anddemonstrate compliance with finance-related legal requirements.
160
Management’s Discussion and Analysis
Governmental Funds. The focus of the City of Solvang’ s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Solvang’ s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’ s net resources available for discretionary useas they represent theportion offundbalance whichhas not yet been limited to use for a particular purpose by either an external party, the City of Solvang itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City of Solvang’ s City Council.

At June 30, 2021, the City of Solvang’ s governmental funds reported combined fund balances of 15,159,323, an increase of $1,579,689 in comparison with the prior year. Approximately 40.61% of this amount ($6,156,019) constitutes unassigned fund balance which is available for spending at the government’ s discretion. The remainder of the fund balance is either nonspendable, restricted, or committed, to indicate that it is 1) not in spendable form ($627,138), 2) restricted for particular purposes ($3,545,533), or 3) committed for particular purposes ($4,830,633). The increase in governmental funds from fiscal year 2019-20 to fiscal year 2020-21, was due primarily to increased revenues attributed to the end of COVID-19 pandemic closures.

The general fund is the chief operating fund of the City of Solvang. At the end of the current fiscal year, the unassigned fund balance of the general fund was $6,179,842, while total fund balance increased to $11,663,928. Impact Fees ended FY 2020-2021 with a fund balance of $1.60 million, a decrease of approximately $514 thousand from FY 2019-2020. The decrease is a result of using more impact fee funds to fund projects around the City of Solvang. 161
Management’s Discussion and Analysis
Proprietary Funds. The City of Solvang’ s proprietary funds provide the same type ofinformation found in the government- wide financial statements, but in more detail.

Unrestricted net position for the Water and Wastewater funds at the end of the year were 6,853,018 and $3,031,353 respectively. The total decrease innet position for Water was $238,082.

The Wastewater fund increased its net position by $478,368. The Wastewater Division shows an operating surplus due to the increase in revenues from sewer operations.

Transit operations unrestricted net position totaled $1,761,016 an increase of $76,420 from fiscal year 2019-20. Transit operations overall net position decreased by 1.36% to end the fiscal year at 2,203,954, primarily due to more Capital expenditures compared to the prior fiscal year. 162
Management’s Discussion and Analysis
General Fund Budgetary Highlights
Original budget compared to final budget. There were a few budget adjustments greater than 50,000 during the fiscal year. Budget adjustments greater than $50,000 are listed below:

Final budget compared to actual results. The most significant differences (greater than $100,000) between estimated revenues and actual revenues were as follows:

Notable differences, between estimated expenditures and actual expenditures by Department were as follows:

Most of these differences were due to a slight increase in expenses for City Employed staff and an increase in contracted services.
163
Management’s Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City of Solvang’ s investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $ 24,296,253 ( net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, and the wastewater treatment plant. The investment in capital assets increased by 0.3%. Major capital asset events ( greater than $100K) during fiscal year 2019-20 include the following:

Additional information on the City of Solvang’ s capital assets can be found in Note 5 on pages 74-75 of this report.

Long-term Debt. Under insurance arrangements, the City is self-insured for the first $50,000 for each workers’ compensation claim, $20,000 for each general liability claim, and $5,000 per property damage claim. The statement of net position also shows no liability for 2020 for estimated claim obligations and has no current obligation for 2020. This liability was fully funded and paid in 2020, and there were no pending claims at the end of the fiscal year.

The City has a take or pay water purchase agreement with the Santa Ynez River Water Conservation District, Improvement District No. 1 (ID No.1), for State Water, where the City must make annual payments for the State Water whether or not water is delivered. ID No 1. has pledged its water sale revenue from Solvang for repayment of its long-term debt. Solvang has an ongoing commitment to buy water from ID No 1, but the bonded debt is that of ID No. 1 and not the City of Solvang. The agreement requires annual payments until 2035.

Additional information on the City’s long-term debt can be found starting on page 76 of the notes to the financial statements
Economic Factors and Next Year’ s Budget and Rates
The following economic factors currently affect the City of Solvang and were considered in developing the 2021-22 fiscal year budget:
x In June 2021, the City Council adopted a General Fund budget with revenues greater than budgeted expenses. This was, in part, due to increased budgeted revenues of Transient Occupancy and Sales Taxes, both affected by a “ return to normal” tourism numbers due to the end of COVID- 19 closures.
164
Management’s Discussion and Analysis
x In 2011, an annual increase in water rates was approved and scheduled for each November from fiscal year 2011-12 through fiscal year 2015-2016. The additional funds generated by the increase were intended to support maintenance and capital replacement costs, as well as provide adequate funding of reserves. However, with the State of California in a severe drought, the impact of the rate increase has been diminished by the need to purchase additional water and move forward with capital projects to ensure long term water resources.

The City completed a water and sewer rate study in FY 2016-17 and the City Council elected not to raise rates at that time. Staff will be evaluating revenue projections, as well as short and long term needs for water and sewer and will return to Council for continued discussion and review in 2021-22.
x As property values slowly increase, the taxable assessed value as a percentage of estimated actual value in property assessments increases, and contributes to the increase in City revenues.
x The City is receiving lower interest revenues from our investments, both in the State Wide Local Agency Investment Fund, and Certificates of Deposit than what was budgeted for.

Interest rates are on thedecline currently and this will be addressed during thebudget process for FY 2022-23.
x Increases are expected in pension and other post-employment benefit costs. The City’s pension liabilities will continue to climb over the next 5-7 years as CalPERS adjusts their methodology and assumptions, which also increases employer contributions. Staff continue to review and evaluate pension costs and work with CalPERS on possible funding strategies. x The City of Solvang relies heavily on tourism, with over 1.5 million visitors annually, requiring daily services for residents and non-residents alike.

Requests for Information
This financial report is designed to provide a general overview of the City of Solvang’ s finances for anyone with an interest in the government’ s finances. If you have questions about this report or need additional financial information, contact the City Manager at:

City of Solvang
1644 Oak Street
Solvang, California 93463
805) 688-5575
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166
BASIC

FINANCIAL STATEMENTS
167
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168

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
169
City of Solvang
Statement of Net Position
June 30, 2021
Governmental
Activities
Business- Type
Activities Total
ASSETS
Current assets:

Cash and investments 15,587,976$ 9,498,176$ 25,086,152$ Taxes receivable 8,949 - 8,949
Accounts receivable 1,160,115 1,287,759 2,447,874
Due from other government 76,502 - 76,502
Interest receivable 13,578 6,730 20,308
Deposits - 633,087 633,087
Prepayments 41,920 2,771,578 2,813,498
Total current assets 16,889,040 14,197,330 31,086,370
Noncurrent assets:

Receivables- long-term 78,048 - 78,048
Capital assets:

Capital assets not being depreciated 2,762,040 1,216,363 3,978,403 Capital assets being depreciated, net 9,978,626 10,339,224 20,317,850 Total capital assets 12,740,666 11,555,587 24,296,253
Total noncurrent assets 12,818,714 11,555,587 24,374,301 Total assets 29,707,754 25,752,917 55,460,671

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 709,256 236,420 945,676
Deferred outflows - OPEB 162,135 54,045 216,180
Total deferred outflows of resources 871,391 290,465 1,161,856 Primary Government
See accompanying Notes to Basic Financial Statements. 170 Governmental
Activities
Business- Type
Activities Total

LIABILITIES
Current liabilities:

Accounts payable 590,353 893,433 1,483,786
Accrued liabilities - 8,970 8,970
Deposits 1,384 - 1,384
Unearned advances 28,183 1,000 29,183
Compensated absences, due within one year 60,000 76,290 136,290 Total current liabilities 679,920 979,693 1,659,613
Noncurrent liabilities:

Compensated absences, due in more than one year 80,405 111,682 192,087 Net other post employment benefit liability 1,144,797 381,599 1,526,396 Net pension liability 3,521,902 1,173,968 4,695,870
Total noncurrent liabilities 4,747,104 1,667,249 6,414,353 Total liabilities 5,427,024 2,646,942 8,073,966

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 291,584 97,196 388,780
Deferred inflows - OPEB 294,811 98,270 393,081
Total deferred inflows of resources 586,395 195,466 781,861

NET POSITION
Net investment in capital assets 12,740,666 11,555,587 24,296,253 Restricted for:

Highways and streets 846,895 - 846,895
Capital improvements 2,698,638 - 2,698,638
Total restricted 3,545,533 - 3,545,533
Unrestricted 8,279,527 11,645,387 19,924,914
Total net position 24,565,726$ 23,200,974$ 47,766,700$
Primary Government
171
City of Solvang
Statement of Activities
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total City Government:

Governmental activities:

General government 1,973,026$ 577,697$ 225,439$ -$ 803,136$ Public safety 1,861,310 1,971 - - 1,971
Culture and recreation 1,651,868 44,676 8,780 - 53,456
Community development 704,481 260,150 - - 260,150
Public works 2,393,971 232,180 979,288 129,594 1,341,062 Total governmental activities 8,584,656 1,116,674 1,213,507 129,594 2,459,775 Business- type activities:

Water 5,280,019 5,102,750 - 22,978 5,125,728
Wastewater 2,222,770 1,415,118 499,871 - 1,914,989
Transit 1,029,086 37,682 953,115 - 990,797
Total business- type activities 8,531,875 6,555,550 1,452,986 22,978 8,031,514 Total primary government 17,116,531$ 7,672,224$ 2,666,493$ 152,572$ 10,491,289$ General Revenues:

Taxes:

Property taxes
Sales taxes
Transient occupancy taxes
Other taxes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements. 172 Governmental Business-Type
Activities Activities Total
1,169,890)$ -$ ( 1,169,890)$
1,859,339) - ( 1,859,339)
1,598,412) - ( 1,598,412)
444,331) - ( 444,331)
1,052,909) - ( 1,052,909)
6,124,881) - ( 6,124,881)
154,291) ( 154,291)
307,781) ( 307,781)
38,289) ( 38,289)
500,361) ( 500,361)
6,124,881)( 500,361)( 6,625,242)
1,542,764 - 1,542,764
1,606,443 - 1,606,443
4,078,826 - 4,078,826
287,548 - 287,548
7,515,581 - 7,515,581
9,490 12,236 21,726
45,425 - 45,425
697,967) 697,967 -
6,872,529 710,203 7,582,732
747,648 209,842 957,490
23,818,078 22,991,132 46,809,210
24,565,726$ 23,200,974$ 47,766,700$
Primary Government
and Changes in Net Position
Net (Expense) Revenue
173
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174
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
175
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176

GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Impact Fee Fund accounts for impact fees paid by developers restricted for various capital improvement projects.
177
City of Solvang
Balance Sheet
Governmental Funds
June 30, 2021
Non-Major Total
General Fund
Impact Fee
Fund
Governmental
Funds
Governmental
Funds
ASSETS
Cash and investments 11,091,185$ 1,598,511$ 1,731,412$ 14,421,108$ Receivables:

Taxes receivable 8,949 -- 8,949
Accounts receivable 967,417 - 192,698 1,160,115
Due from other government 76,502 -- 76,502
Interest receivable 8,739 1,791 1,627 12,157
Due from other funds 20,658 -- 20,658
Prepaid items 41,920 -- 41,920
Loans and notes receivables 58,492 19,556 - 78,048
Total assets 12,273,862$ 1,619,858$ 1,925,737$ 15,819,457$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 580,367$ -$ 9,986$ 590,353$
Due to other Funds -- 20,658 20,658
Deposits payable 1,384 -- 1,384
Unearned revenues 28,183 -- 28,183
Total liabilities 609,934 - 30,644 640,578
Deferred inflows of resources:

Unavailable revenues - 19,556 - 19,556
Fund Balances:

Nonspendable ( Prepaid items and loans) 100,412 -- 100,412 Restricted for:

Recycling 16,947 -- 16,947
Highways and streets - 846,895 1,918,916 2,765,811
Parking - 8,032 - 8,032
Park improvements - 45,987 - 45,987
Drainage - 262,144 - 262,144
Affordable housing - 437, 244 - 437, 244
Tennis facilities 9,368 -- 9,368
Total restricted 26,315 1,600,302 1,918,916 3,545,533
Committed to:

Emergencies 4,830,633 -- 4,830,633
Total committed 4,830,633 -- 4,830,633
Assigned to:

Capital projects 526,726 -- 526,726
Unassigned 6,179,842 -( 23,823) 6,156,019
Total fund balances 11,663,928 1,600,302 1,895,093 15,159,323 Total liabilities, deferred inflows of
resources, and fund balances 12,273,862$ 1,619,858$ 1,925,737$ 15,819,457$ Major Funds
See accompanying Notes to Basic Financial Statements. 178 Total Fund Balances - Total Governmental Funds 15,159,323$ Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds 12,464,585
The assets and liabilities of the internal service fund are included in the governmental activities in the statement of net position 1,444,370
Pension actuarial liabilities and certain employer contributions are reported as deferred inflows and outflows of resources and are, therefore, not reported in the funds 417,672 Net pension liability (NPL) obligations are not due and payable in the current period and are not reported in the fiunds ( 3,521,902)
OPEB actuarial liabilities and certain employer contributions are reported as deferred inflows and outflows of resources and are, therefore, not reported in the funds ( 132,676) The net OPEB liability is not due and payable in the current period and is therefore not reported in the funds ( 1,144,797)
Long-term notes receivable from developers are not current financial resources and are reported as deferred inflows in the funds 19,556
Some liabilities, including compensated absences, and claims are not due and payable in the current period and are therefore not reported in the funds ( 140,405) Net Position of Governmental Activities 24,565,726$
Amounts reported for governmental activities in the statement of net position are different City of Solvang
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
See accompanying Notes to Basic Financial Statements. 179 Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Total
General Fund
Impact Fee
Fund
Governmental
Funds
Governmental
Funds
REVENUES:

Property taxes 1,542,764$ -$ -$ 1,542,764$
Sales taxes 1,606,443 - - 1,606,443
Transient occupancy taxes 4,078,826 - - 4,078,826
Other taxes 287,548 - - 287,548
Special assessments - - 214,971 214,971
Licenses and permits 128,951 - - 128,951
Fines and forfeits 7,494 - - 7,494
Intergovernmental 230,439 258,649 845,233 1,334,321
Interest 6,846 1,622 2,192 10,660
Charges for services 758,056 1,971 5,231 765,258
Miscellaneous 54,205 - - 54,205
Total revenues 8,701,572 262,242 1,067,627 10,031,441
EXPENDITURES:

Current:

General government 1,803,038 - - 1,803,038
Public safety 1,855,060 - - 1,855,060
Culture and recreation 1,504,503 - - 1,504,503
Community development 747,382 - - 747,382
Public works 1,280,047 - 194,877 1,474,924
Capital outlay 271,944 32,214 754,734 1,058,892
Total expenditures 7,461,974 32,214 949,611 8,443,799
REVENUES OVER ( UNDER) EXPENDITURES 1,239,598 230,028 118,016 1,587,642 OTHER FINANCING SOURCES ( USES):

Transfers in 176,172 - 744,273 920,445
Transfers out - ( 744,273) ( 182,172) ( 926,445)
Total other financing sources (uses) 176,172 ( 744,273) 562,101 ( 6,000) Net change in fund balances 1,415,770 ( 514,245) 680,117 1,581,642 FUND BALANCES:

Beginning of year, as restated 10,248,158 2,114,547 1,214,976 13,577,681 End of year 11,663,928$ 1,600,302$ 1,895,093$ 15,159,323$ City of Solvang
Governmental Funds
For the year ended June 30, 2021
Major Funds
See accompanying Notes to Basic Financial Statements. 180 Net Change in Fund Balances - Total Governmental Funds 1,581,642$ Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays of $832,502 exceed depreciation ($725,259) in the current period. 107,243
Decreases in liabilities for other post employment benefits (OPEB) and other related amounts do not provide current financial resources and are therefore not reported in the governmental fund statements. 92,293
Long-term notes receivable are not current financial resources and are deferred in the funds ( 2,586) Changes in the net pension liability do not use or provide current financial resources and are reported in the statement of activities, but not in the governmental fund statements.( 426,692) Some expenses in the statement of activities for noncurrent liabilities such as long-term compensated absences do not require the use of or provide current financial resources and, therefore, are not reported as expenditures in the governmental funds 105,916 Internal service funds are consolidated by charging additional amounts or reducing charges to participating governmental activities to completely cover the internal service fund's costs ( 710,168) Change in Net Position of Governmental Activities 747,648$ Amounts reported for governmental activities in the Statement of Activities were different City of Solvang
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2021
See accompanying Notes to Basic Financial Statements. 181 This page intentionally left blank
182

PROPRIETARY FUND FINANCIAL STATEMENTS
Water Service Enterprise Fund accounts for the activities associated with providing water services.

Wastewater Enterprise Fund accounts for the wastewater treatment plant and wastewater pumping stations and collection systems.

Transit Enterprise Fund is used to account for transit operations.

Vehicle/Equipment Replacement Internal Service Fund is used to account for replacement costs of City vehicles and equipment and accumulate resources for replacement assets. 183
City of Solvang
Statement of Net Position
Proprietary Funds
June 30, 2021
Water Wastewater
ASSETS
Current assets:

Cash and investments 3,583,184$ 4,305,951$
Accounts receivable 624,355 370,571
Interest receivable 2,784 2,716
Deposits 632,101 836
Prepayments 2,762,435 8,768
Total current assets 7,604,859 4,688,842
Noncurrent assets:

Capital assets:

Capital assets not being depreciated 210,917 1,005,446
Capital assets being depreciated 5,432,589 4,463,697
Total capital assets 5,643,506 5,469,143
Total noncurrent assets 5,643,506 5,469,143
Total assets 13,248,365 10,157, 985

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 94,568 141,852
Deferred outflows - OPEB 21,618 32,427
Total deferred outflows of resources 116,186 174,279

LIABILITIES
Current liabilities:

Accounts payable 98,855 651,965
Other current liabilities 3,947 5,023
Deposits - 1,000
Compensated absences - due within one year 18,908 57,382 Total current liabilities 121,710 715,370
Noncurrent liabilities:

Compensated absences - due in more than one year 45,904 65,778 Net other postemployment benefit liability 152,640 228,959 Net pension liability 469,587 704,381
Total noncurrent liabilities 668,131 999,118
Total liabilities 789,841 1,714,488

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 38,878 58,318
Deferred inflows - OPEB 39,308 58,962
Total deferred inflows of resources 78,186 117,280

NET POSITION
Net investment in capital assets 5,643,506 5,469,143
Unrestricted 6,853,018 3,031,353
Total net position 12,496,524$ 8,500,496$
Enterprise Funds
See accompanying Notes to Basic Financial Statements. 184 Vehicle/ Equipment
Replacement
Internal Service
Transit Total Fund
1,609,041$ 9,498,176$ 1,166,868$
292,833 1,287,759 -
1,230 6,730 1,421
150 633,087 -
375 2,771,578 -
1,903,629 14,197,330 1,168,289
1,216,363 -
442,938 10,339,224 276,081
442,938 11,555,587 276,081
442,938 11,555,587 276,081
2,346,567 25,752,917 1,444,370
236,420 -
54,045 -
290,465 -
142,613 893,433 -
8,970 -
1,000 -
76,290 -
142,613 979,693 -
111,682 -
381,599 -
1,173,968 -
1,667,249 -
142,613 2,646,942 -
97,196 -
98,270 -
195,466 -
442,938 11,555,587 276,081
1,761,016 11,645,387 1,168,289
2,203,954$ 23,200,974$ 1,444,370$
Enterprise Funds
185
City of Solvang
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Water Wastewater
OPERATING REVENUES:

Sales of water 5,073,608$ -$
Service fees - 1,407,295
Miscellaneous 29,142 7,823
Total operating revenues 5,102,750 1,415,118
OPERATING EXPENSES:

Salaries and benefits 597,357 877,192
Purchased power 147,108 280,866
Transit operator - -
Services and supplies 1,264,208 644,668
Joint operating expenses 2,922,190 -
Depreciation expense 351,293 420,044
Total operating expenses 5,282,156 2,222,770
OPERATING INCOME (LOSS)( 179,406) ( 807,652)
NONOPERATING REVENUES ( EXPENSES):

Grant revenue - 499,871
Operating subsidies - -
Gain on sale of capital assets 2,137 -
Interest and investment revenue 8,188 2,203
Total nonoperating revenues ( expenses) 10,325 502,074

INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS ( 169,081) ( 305,578)
Transfers in - 802,000
Transfers out ( 91,979) ( 18,054)
Capital contributions 22,978 -
Net contributions and transfers ( 69,001) 783,946
Change in net position ( 238,082) 478,368
NET POSITION:

Beginning of year 12,734,606 8,022,128
End of year 12,496,524$ 8,500,496$
Enterprise Funds
See accompanying Notes to Basic Financial Statements. 186 Vehicle/ Equipment
Replacement
Internal Service
Transit Total Fund
5,073,608$ -$
37,682 1,444,977 43,439
36,965 -
37,682 6,555,550 43,439
1,474,549 -
427,974 -
497,801 497,801 -
397,507 2,306,383 -
2,922,190 -
133,778 905,115 63,056
1,029,086 8,534,012 63,056
991,404) ( 1,978,462) ( 19,617)
499,871 -
953,115 953,115 -
2,137 -
1,845 12,236 1,416
954,960 1,467,359 1,416
36,444) ( 511,103) ( 18,201)
6,000 808,000 110,033
110,033) ( 802,000)
22,978 -
6,000 720,945 ( 691,967)
30,444) 209,842 ( 710,168)
2,234,398 22,991,132 2,154,538
2,203,954$ 23,200,974$ 1,444,370$
Enterprise Funds
187
City of Solvang
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Water Wastewater
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 5,100,955$ 1,229,903$
Payments to suppliers ( 4,792,462)( 210,226)
Payments to other funds for services ( 278,301)( 173,145) Payments from other funds for services --
Payments for employees and benefits ( 550,744)( 800,106) Net cash provided by (used in) operating activities ( 520,552) 46,426 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in - 802,00
Transfers out ( 91,979)( 18,054)
Grants and operating subsidies - 499, 871
Net cash provided by (used in) noncapital financing activities ( 91,979) 1,283,817 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 2,137 -
Capital contributions 22,978 -
Purchases of capital assets ( 12,725) ( 899,345)
Net cash provided by (used in) capital and related financing activities 12,390 ( 899,345) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment received 19,875 12,703
Net cash provided by investing activities 19,875 12,703 NET INCREASE ( DECREASE) IN CASH AND CASH EQUIVALENTS ( 580,266) 443,601 CASH AND INVESTMENTS - Beginning of year 4,163,450 3,862,350 CASH AND INVESTMENTS - End of year 3,583,184$ 4,305,951$

RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income ( loss)( 179,406)$ ( 807,652)$
Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 351,293 420,044
Changes in assets and liabilities:

Decrease ( increase) in accounts receivable ( 1,795)( 185,215) Decrease ( increase) in deposits ( 22,648)-
Decrease ( increase) in prepayments ( 723,628)( 8,768)
Increase ( decrease) in accounts payable 8,863 550,151
Increase ( decrease) in other liabilities 156 780
Increase ( decrease) in compensated absences 2,026 10,207 Increase ( decrease) in net OPEB liability and related deferred amounts ( 12,305)( 18,460) Increase ( decrease) in net pension liability and related deferred amounts 56,892 85,339 Total adjustments ( 341,146) 854,078
Net cash provided by operating activities ( 520,552)$ 46,426$ Enterprise Funds
See accompanying Notes to Basic Financial Statements. 188 Vehicle/ Equipment
Replacement
Internal Service
Transit Total Fund
37,682$ 6,368,540$ -$
775,944)( 5,778,632)-
58,601)( 510,047)-
43,439
1,350,850)-
796,863) ( 1,270,989) 43,439
6,000 808,000 110,033
110,033)( 802,000)
961,402 1,461,273 -
967,402 2,159,240 ( 691,967)
2,137 -
22,978 -
26,914) ( 938,984)-
26,914) ( 913,869) -
5,646 38,224 6,231
5,646 38,224 6,231
149,271 12,606 ( 642,297)
1,459,770 9,485,570 1,809,165
1,609,041$ 9,498,176$ 1,166,868$
991,404)$ ( 1,978,462)$ ( 19,617)$
133,778 905,115 63,056
187,010)-
22,648)-
732,396)-
60,763 619,777 -
936 -
12,233 -
30,765)-
142, 231 -
194,541 707,473 63,056
796,863)$ ( 1,270,989)$ 43,439$
Enterprise Funds
189
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190

FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Fund accounts for monies collected and held for the Santa Ynez Business Improvement District. 191
City of Solvang
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
Custodial
Fund
ASSETS
Cash and investments 42,608$
Assessments receivable 44,280
Total assets 86,888

LIABILITIES
Accounts payable -
Total liabilities -

NET POSITION
Restricted for tourism 86,888
Total net position 86,888$
See accompanying Notes to Basic Financial Statements. 192 City of Solvang
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
Custodial
Fund
ADDITIONS:

Special assessments 375,004$
Total additions 375,004
DEDUCTIONS:

Pass-through payments 309,944
Total Deductions 309,944
Change in net position 65,060
NET POSITION:

Beginning of year, as restated 21,828
End of year 86,888$
193
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194

NOTES TO BASIC

FINANCIAL STATEMENTS
195
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196
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Solvang, California ( City) have been prepared in conformity with generally accepted accounting principles ( GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Solvang is a municipal corporation governed by an elected five-member City Council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable.

The Solvang Joint Powers Financing Authority is a legally separate corporate entity for which the City is financially accountable and is governed by the elected City Council. The Authority was formed to provide a method of financing public improvements. The financial activities of the Authority are blended with those of the City and are reported in the City's governmental funds, and as capital assets of the City and debt obligations of the City.

Separate financial statements are not available for these component units.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government- Wide Financial Statements
The City’s Government- Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements . Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
197
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, Continued
These financial statements are presented on an “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’ s assets, deferred inflows/ outflows of resources, and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liabilities are incurred.

Certain types of transactions reported as program revenues for the City are reported in three categories:
x Charges for services
x Operating grants and contributions
x Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
x Due to/ from other funds
x Transfers in/ out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government- wide financial statements. The City has presented all major funds that meet specific qualifications.

All governmental funds are accounted for on a spending or “ current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases ( revenues and other financing sources) and decreases ( expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
198
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued
The City reports the following funds as major governmental funds of the City.

The General Fund is the government’ s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Impact Fee Fund is a special revenue fund used to account for impact fees restricted by law to use only for the specific purpose of the fee.

Revenues are recorded when received in cash, except that revenues subject to accrual ( generally those received 60 days after year-end) are recognized when due. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, taxpayer- assessed tax revenues ( sales taxes, transient occupancy taxes, franchise taxes, etc.), grant revenues and earnings on investments.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The Reconciliation of the Fund Financial Statements to the Government- Wide Financial Statements is provided.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the GovernmentWide Financial Statements.

Proprietary funds are accounted for using the “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increases ( revenues) and decreases ( expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which a liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The City reports the following major proprietary funds:

The Water Enterprise Fund accounts for the operations of the City's water treatment and distribution system.

The Wastewater Enterprise Fund accounts for the operation of the City's wastewater treatment plant and collection facilities.

The Transit Enterprise Fund accounts for the operation of the City’s transit activities. 199
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued
Internal service fund balances and activities have been combined with governmental activities in the Government- Wide Financial Statements, and are comprised of the following fund:

Vehicle/Equipment Replacement Fund accounts for charges to the City departments for funding and acquisition of replacement vehicles and equipment.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position. The City has one type of fiduciary fund, a custodial fund. Custodial funds are used to account for fiduciary activities not required to be reported in an investment trust fund, pension trust fund, or private-purpose trust fund.

The City reported the following custodial fund:

Santa Ynez Valley Tourism Business Improvement District Custodial Fund – accounts for monies held by the City for the Santa Ynez Valley Tourism Business Improvement District.

C. Cash, Cash Equivalents, and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance inthe pooled cash account is available to meet current operating requirements. Cash inexcess of current requirements is invested in various interest- bearing accounts and other investments for varying terms.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures ( Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:

Interest Rate Risk
CreditRisk
o Overall
o Custodial Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’ s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City does not have any investments that are measured using Level 3 inputs.
200
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED C. Cash, Cash Equivalents, and Investments, Continued
The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund ( LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset-Backed Securities. LAIF’ s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and AssetBacked Securities are subject to market risk as to the change in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “ Cash and Investments” in the accompanying Basic Financial Statements.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments ( consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

D. Receivables and Payables
Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as either “ due to/ from other funds” ( i.e., the current portion of interfund loans) or “advances to/ from other funds” ( i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “ due to/ from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “ internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are not shown net of an allowance for uncollectible amounts.

Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Santa Barbara collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voterapproved debt. Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the “ Teeter Plan”. Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City. 201
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED E. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/ first-out ( FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government- wide and fund financial statements. Such prepayments are accounted for using the consumption method in the governmental funds.

F. Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets ( e.g., roads, bridges, sidewalks, and similar items). They are reported in the applicable governmental- type or business-type activities columns in the government- wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($ 100,000 for infrastructure type assets) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Under the GASB 34 Implementation Rules, the City is a Phase 3 entity and was not required to record infrastructure assets existing or acquired prior to July 1, 2002 at the date these new financial reporting standards were implemented. The City has not recorded such assets. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives:

G. Compensated Absences
It is the government’ s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is a liability for a portion of unpaid accumulated sick leave since the City does have a policy to pay certain amounts when employees separate from service with the City. All vacation pay and applicable sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

H. Long- term Obligations
In the government-wide financial statements, and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. 202
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED I. Net Position
In the Government-Wide and Proprietary Fund Financial Statements, net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of governments.

Unrestricted – This amount is all net position that do not meet the definition of “ net investment in capital assets” or “restricted net position” as defined above.

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

J. Fund Balances – Governmental Funds
Fund balances for governmental funds are reported in classifications based primarily on the extent to which the City is bound to honor constraints about the specific purposes for which amounts in those funds can be spent. These classifications include ( 1) nonspendable, ( 2) restricted, ( 3) committed, ( 4) assigned and (5) unassigned amounts.

Nonspendable amounts generally are items not expected to be converted into cash such as inventories and prepaid items.

Restricted amounts include those where constraints placed on the uses of the resources are externally imposed by grantors, contributors, other governments or by laws or regulations.

Committed amounts are those that can only be used for a specific purpose as determined by the City Council. Such committed amounts may be redeployed for other uses only by the direction of the City Council. Commitments are established, modified, or rescinded by the City Council adopting such action by resolution. The City’s reported committed fund balance for emergencies was established by City resolution and can only be accessed during a significant decrease in revenues as defined per the City’s policy.

Assigned amounts are fund balance amounts constrained by the City’s intent to be used for specific purposes as determined by the City Manager or City Administrative Services Director, Unassigned fund balance amounts are the residual amounts reported in only the general fund.

When expenditures are incurred for which both restricted and unrestricted ( committed, assigned or unassigned) amounts are available, the City considers restricted amounts to have been spent first. When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts.
203
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED K. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the State of California Public Employees Retirement System ( PERS) and additions to or deductions from the PERS fiduciary net position have been determined on the same basis as they are reported by the PERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

L. Postemployment Benefits Other Than Pensions ( OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Retiree Benefits Plan and additions to/ deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. Investments are stated at fair value.

For this purpose, the City’s Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.

M. Use of Estimates
The preparation of the Basic Financial Statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

N. New Pronouncements
In 2021, the City adopted the new accounting standards to conform to the following Governmental Accounting Standards Board Statements:

GASB Statement No. 84, Fiduciary Activities – The objective of this statement is to improve guidance regarding the dentification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The statement establishes criteria for identifying fiduciary activities of all state and local government. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The City reclassified its agency fund to a custodial fund as a result of implementing this statement.
204
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED N. New Pronouncements, Continued
GASB Statement No. 90, Majority Equity Interest – The objective of this statement is to improve the consistency and comparability of reporting a government’ s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should bereported as aninvestment ifthe government’ s holding of the equity meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment ( including permanent and term endowments) or permanent fund. There was no impact on net position as a result of implementation of this statement.

GASB Statement No. 93, Replacement of Interbank Offered Rates – The objective of this statement is to address the accounting and financial reporting implications that result from the elimination of the London Interbank Offered Rate ( LIBOR) that is notably used in most agreements in which variable payments made or received depend on an interbank offered rate (IBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. There was no impact on net position as a result of implementation of this statement.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 – The objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; ( 2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit ( OPEB) plans, and employee benefit plans other than pension plans or OPEB plans as fiduciary component units in fiduciary fund financial statements; and ( 3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. There was no impact on net position as a result of implementation of this statement.

GASB Statement No. 98, The Annual Comprehensive Financial Report – The objective of this statement is to address references in authoritative literature to the term comprehensive annual financial report. There was no impact on net position as a result of implementation of this statement.
205
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS
A. Summary of Cash and Investments
Deposits and investments at June 30, 2021 consisted of the following:

B. Deposits
At June 30, 2021, the carrying amount of the City’s cash and cash equivalents were comprised of the general checking account which had a book balance of $ 1,597,072 and petty cash of $550. The bank balance in the City’s general checking was $2,028,227 fully insured and collateralized with securities held by the pledging financial institutions in the City’s name as discussed below. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

City Treasury:

Deposits:

Cash on hand 550$
Deposits with financial institution 1,597, 072
Total cash on hand and deposits 1,597,622
Investments:

Certificates of deposit 248,440
Local Agency Investment Fund (LAIF) 23,282, 698
Total investments 23,531,138
Total cash and investments 25,128,760$
206
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, CONTINUED
B. Deposits, Continued
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures or trust agreements. Interest income earned on pooled cash and investments is allocated to the various funds based on the period- end cash and investment balances. Interest income from cash and investments with fiscal agents or held in trust is credited directly to the related fund.

C. Investments
The City is authorized by State statutes to invest in the following:

U.S. Treasury and U.S. Agency Issues
Certificates ofDeposit
California Local Agency Investment Fund (LAIF)
Government Bonds and Notes
Passbook Savings
Bankers Acceptances
Commercial Paper (Corporations)
Medium- Term Corporate Notes
Repurchase Agreements
Mutual Funds
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics ( coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/ or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage- backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages ( such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $23,282,698 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF.
207
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, CONTINUED
D. Risk Disclosures
Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, an investment with a longer maturity date has a greater sensitivity of its fair value to be subject to changes in market interest rates. In accordance with the City’ s investment policy, exposure to interest rate risk is mitigated by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits the City's investment portfolio to maturities of five years or less.

Credit Risk - State law limits investments in various securities to certain level of risk ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with State law as regards securities ratings. The City’s investment in the State Investment Pool is unrated.

Custodial Credit Risk - For an investment, custodial credit risk is the risk that, in the event of the failure of a counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy specifies that securities are to be held by a third party, other than the counterparty, in the City's name, whenever possible. The investment in the LAIF is not subject to custodial credit risk.

E. Investment Valuation
Investments are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board ( GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’ s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs, such bond valued by a pricing service that uses matrix pricing, pay-fixed receive-variable interest rate swap based on the Long Interbank Offered Rate (LIBOR) swap rate, three-year option on exchange-traded shares, or valuation multiple; Level 3 inputs are significant unobservable inputs. The City’s investments were not subject to levelling disclosure.
208
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

3. INTERFUND TRANSACTIONS
The composition of interfund transfers for the year ended June 30, 2021 is as follows:

Transfers of $744,273 made from the Impact fee fund to Non-Major Governmental Funds were to fund various street project expenditures. Transfers from the Internal Service Fund to the Wastewater Enterprise Fund of $802,000 was to fund wastewater capital projects. Transfers of $176,172 were made from Non-Major Governmental Funds to the General Fund to fund the public works department for highway and street activities. $91,979 and $18,054 was transferred from the Water Enterprise Fund and Wastewater Enterprise Fund respectively to fund future vehicle and equipment replacement. $ 6,000 was transferred from NonMajor Governmental Funds to the Transit Enterprise Fund to fund transportation activities.

The composition of due to and due from other funds as of June 30, 2021 is as follows:

4. LOANS AND NOTES RECEIVABLES
The notes receivable as of June 30, 2021, comprised of a development note receivable of $19,556 and $58,492 in micro loans to 53 local businesses to help with covering expenses for those businesses. 209
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS
Capital asset activity relating to governmental activities for the year ended June 30, 2021 was as follows:
210
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS, CONTINUED
Capital asset activity relating to business-type activities for the year ended June 30, 2021 was as follows:

Depreciation and amortization expense was charged to functions/ programs of the City as follows:
211
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

6. LONG-TERM OBLIGATIONS
Long-term liability activity for the 2021 fiscal year was as follows:

The general fund is typically used to liquidate the liability for compensated absences applicable to the City’s governmental activities.

7. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City is a member of the California Joint Powers Insurance Authority (California JPIA). The California JPIA provides general liability insurance to the City with a $50 million per occurrence and $50 million per year aggregate limit.

The City also participates in the Insurance Authority’ s workers compensation insurance program. The risk of loss is transferred to the California JPIA. The City is subject to retrospective premium adjustments under the arrangement.

The uninsured risk retained by the City is $50,000 per incident for workers compensation claims, 20,000 per incident for general liability claims, and $5,000 per property damage claim. The Insurance Authority purchases commercial insurance for claims in excess of its deductible amounts which is $5 million for liability and $500,000 for workers compensation. Insurance transactions are accounted for in the general fund. Liabilities of the City are reported in the statement of net assets for the governmental activities when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs).

The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. Settlements have not exceeded coverage for each of the past three fiscal years. There were no changes in the balances of claims liabilities during the past two years. 212
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

8. CONTINGENCIES AND COMMITMENTS
Litigation. The City is involved in litigation incurred in the normal course of conducting City business.

Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Grants and allocations. Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to beimmaterial.

Capital Project Commitments. As of June 30, 2021, the City had outstanding commitments with contractors for the following projects:
213
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

9. OPERATING AGREEMENTS
Water Supply Agreement. The City has an agreement with the Santa Ynez River Water Conservation District, Improvement District One, wherein the District and The Central Coast Water Authority constructed and operate a joint water treatment facility and water conveyance system. The Authority financed the plant and system by selling revenue bonds, and in 1997, issued $198 million in refunding revenue bonds. The agreement is a take-or-pay obligation, and the City is obligated to pay amounts specified in the agreement whether or not water is treated or delivered. The amounts paid by the City are pledged by the Authority for repayment of the Authority's debt obligations. The City records these payments as operating expenses in its water enterprise fund.

10. PENSION PLANS
A. Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan ( Plan) administered by the California Public Employees’ Retirement System ( CalPERS). The Plan consists of individual rate plans ( benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used topay benefits for any employer rate plan ofthe safety and miscellaneous risk pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two miscellaneous rate plans and three safety rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee’ s Retirement Law. 214
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, CONTINUED
B. Benefits Provided
The rate plan provisions and benefits in effect at June 30, 2021 are summarized as follows:

Contributions – Section 20814( c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an actuarial basis, annually and is effective on July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The General Fund has typically been used to liquidate pension liabilities for governmental funds.

The City’s contributions to the Plan for the measurement period ended June 30, 2020 were $369,421.

The City’s contributions to the Plan for the fiscal year ended June 30, 2021 recorded as deferred outflows of resources were $400,915.

As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $4,695,870.

Miscellaneous
PEPRA
Miscellaneous
Safety
Hire date Prior to January
1, 2013
On or after
January 1, 2013
Prior to January
1 2013
Benefit formula 2.5% @ 55 2.0% @ 62 2% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 55
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 2.0% 2.0% Required employee contribution rates 8.000% 7.250% 0.000% Required employer contribution rates 13.146% 7.874% 0.000% Required unfunded liability payment 288,702$ 333$ 9,675$ Rate Plan
215
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City’ s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportionate share of the net pension liability was based on the City’s plan liability and assetrelated information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

The City’ s proportionate share of the net pension liability for each Plan as of measurement dates June 30, 2019 and 2020 were as follows:

For the year ended June 30, 2021, the City recognized pension expense of $969,838 at June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
400,915 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022.
216
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions – The total pension liability in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

The mortality table used was developed based on CalPERS- specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. Further details of the December 2017 Experience Study can be found on the CalPERS website www.calpers. ca.gov.

Discount Rate – The discount rate used to measure the total pension liability was 7.15% for the Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. 217
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term first 10 years) and the long-term ( 11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’ s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’ s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:
218
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

10. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’ s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2021, the City reported no payable for outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.

11. RESTRICTED NET POSITION AND FUND BALANCES
The $ 3,545,533 restricted amount in the governmental activities statement of net position represents amounts to be used only for specific purposes which restrictions are imposed by laws, formal agreements or other governments.

12. OTHER POST- EMPLOYMENT BENEFITS
A. Plan Description.

The City’s defined benefit OPEB Plan provides OPEB for all eligible full-time general and public safety employees of the City. The City entered into an agreement with CalPERS to participate in the CERBT, an agent multiple-employer other postemployment benefits plan, to fund the City’s OPEB. CERBT is administered by CalPERS, which is managed by an appointed board not under the control of the City Council. CEBT issues a publicly available financial report that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided.

The City’s OPEB plan provides healthcare benefits to eligible retirees and their dependents. Benefits are provided through third party insurers, and the full cost of the benefits is provided by the Plan. The City’s OPEB Plan provides for automatic or ad hoc post-employment benefit changes.

Employees Covered by the Benefit Terms.

At June 30, 2021, the following employees were covered by the benefit terms:

The City’s OPEB Plan is closed to new entrants.
219
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

12. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
B. Contributions
The City’s plan is affiliated with the State of California PERS in so far as the City’s health insurance premium payments are paid to the PERS. The PERS through an aggregation of single employer plans pools administrative functions in regard to purchases of commercial health insurance policies and coverages. City regulations grant authority to the City Council to establish and amend contribution requirements. Employees are not required to contribute to the plan. The amount contributed for the measurement period ended June 30, 2020 was $204,647 which amount was based on the City’s decision to prefund its obligation. The General Fund has typically been used to liquidate OPEB liabilities for governmental funds. The City’s contribution for fiscal year 2021 was $214,130.

C. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020.

D. Actuarial assumptions
The total net OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement unless otherwise specified:

Mortality rates were based on the 2017 CalPERS Mortality for Miscellaneous and Schools Employees.

Change of assumptions: For measurement date June 30, 2020, mortality rates were updated to reflect more current experience information. The 2017 CalPERS mortality tables were used for determining the total OPEB liability.

The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return weighing the expected future real rates of return by target asset allocation asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized below:
220
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

12. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’ s fiduciary net position was projected to be available to make all projected OPEB payments for current and active employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

F. Net OPEB Liability
The following presents the Net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage- point lower (6 percent) or 1- percentage point higher (8 percent) than the current discount rate. 221
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

12. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
F. Net OPEB Liability, Continued
The following presents the Net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage- point lower (3 percent) or 1- percentage point higher (5 percent) than the current healthcare cost trend rate.

G. OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued financial report.

H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $91,072. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
214,130 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022.
222
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2021

12. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB, Continued
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as pension expense as follows:

13. PRIOR PERIOD ADJUSTMENTS
The City recorded a prior period adjustment to establish beginning fiduciary net position for its custodial fund, as part of implementing GASB Statement No. 84, Fiduciary Activities, and to remove the Solvang Conference and Visitors Bureau due to the governing body of the City no longer being substantially the same as the governing body of the Bureau.
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224

REQUIRED SUPPLEMENTARY

INFORMATION
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226
City of Solvang
Required Supplementary Information
For the year ended June 30, 2021

1. DEFINED BENEFIT PENSION PLAN
A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years* B. Schedule of Employer Pension Contributions – Last 10 Years* 227
City of Solvang
Required Supplementary Information
For the year ended June 30, 2021

2. OTHER POSTEMPLOYMENT BENEFITS
Notes to Schedule
Fiscal year 2018 was the 1st year of implementation
Change of assumptions: Mortality assumptions were updated in fiscal year 2021 Actuarially determined contributions are not calculated for the plan. 228
City of Solvang
Required Supplementary Information
For the year ended June 30, 2021

3. BUDGETS AND BUDGETARY ACCOUNTING
A. Budgeting procedures
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds, except repayments of internal balances in the general fund are budgeted as an expenditure for budgetary purposes. Appropriations lapse at fiscal yearend. The appropriated budget is prepared by fund, function and department. The City Manager may make transfers of appropriations within a department. Transfers between departments and other changes require City Council approval. The legal level of control is the department and fund level. The Council made supplemental appropriations during the fiscal year. Encumbrance accounting is not employed in governmental funds. 229
City of Solvang
Required Supplementary Information
For the year ended June 30, 2021
B. Budgetary Comparison Schedule - General Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
Fund Balance, July 1 10,248,158 10,248,158 10,248,158 -$ Resources ( inflows):

Property taxes 1,533,492 1,533,492 1,542,764 9,272
Sales taxes 1,359,000 1,359,000 1,606,443 247,443
Transient occupancy taxes 2,791,525 2,791,525 4,078,826 1,287,301 Other taxes 250,500 250,500 287,548 37,048
Licenses and permits 105,000 105,000 128,951 23,951
Fines and forfeits 2,000 2,000 7,494 5,494
Intergovernmental 300,000 300,000 230,439 ( 69,561)
Interest 155,000 155,000 6,846 ( 148,154)
Charges for services 711,064 711,064 758,056 46,992
Miscellaneous 118,000 118,000 54,205 ( 63,795)
Transfers in 156,172 156,172 176,172 20,000
Amounts available for charges to appropriations 17,729,911 17,729,911 19,125,902 1,395,991 Charges to appropriations:

General Government:

Nondepartmental:

City council 37,200 37,200 39,700 ( 2,500)
Other 91,149 91,149 96,442 ( 5,293)
OPEB 200,580 200,580 214,130 ( 13,550)
Community support 217,620 227,620 215,905 11,715
Administration:

Legal 200,000 175,000 182,075 ( 7,075)
General administration 856,152 901,152 1,054,786 ( 153,634) Public Safety:

Sheriff contract 1,840,297 1,840,297 1,806,359 33,938
Animal control 44,459 44,459 46,256 ( 1,797)
Mental health & 211 program 2,852 2,852 2,445 407
Culture and Recreation:

Tourism 541,083 551,083 855,457 ( 304,374)
Parks and recreation 570,321 587,821 464,191 123,630
Library 184,855 184,855 184,855 -
Community Development:

City planning, building, development 644,720 618,970 747,382 ( 128,412) Public works:

Public works, streets, engineering 1,884,999 1,974,249 1,551,991 422,258 Total charges to appropriations 7,316,287 7,437,287 7,461,974 ( 24,687) Fund Balance, June 30 10,413,624 10,292,624 11,663,928 1,371,304 Budget Amounts
230
City of Solvang
Required Supplementary Information
For the year ended June 30, 2021
C. Budgetary Comparison Schedule - Impact Fee Special Revenue Fund Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental -$ 270,000$ 258,649$ ( 11,351)$
Interest 18,424 18,424 1,622 ( 16,802)
Charges for services 28,539 28,539 1,971 ( 26,568)
Total revenues 46,963 316,963 262,242 ( 54,721)
EXPENDITURES:

Current:

Capital outlay 45,000 45,000 32,214 12,786
Total expenditures 45,000 45,000 32,214 12,786

REVENUES OVER
UNDER) EXPENDITURES 1,963 271,963 230,028 ( 41,935)
OTHER FINANCING SOURCES ( USES):

Transfers in 270,000 - - -
Transfers out ( 795,000) ( 795,000) ( 744,273) 50,727
Total other financing sources (uses)( 525,000) ( 795,000) ( 744,273) 50,727 Net change in fund balances ( 523,037)$ ( 523,037)$ ( 514,245) 8,792$ FUND BALANCES:

Beginning of the year 2,114,547
End of year 1,600,302$
Budget Amounts
231
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232

SUPPLEMENTARY INFORMATION
233
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234
Traffic Safety Fund accounts for fines, forfeitures, and other monies restricted for traffic safety.

Gas Tax Fund accounts for funds from the State of California under the Street and Highway Code Sections 2103, 2105, 2106, 2107 and 2107.5. The use of funds is restricted to street related projects, which can include related public facilities for non-motorized traffic, e.g. bike and pedestrian paths.

Local Transportation Fund accounts for monies restricted by the State of California Transportation Development Act.

Measure A Fund accounts for Measure A Funds ( Santa Barbara County) restricted for road repair, traffic relief, and transportation safety projects and programs.

Skytt Mesa Landscape and Lighting Fund accounts for special assessments restricted for the Skytt Mesa Landscape and Lighting District.

City Capital Projects Fund accounts for monies committed for City capital projects.

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

CAPITAL PROJECTS FUNDS
235
City of Solvang
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Skytt Mesa
Traffic Local Landscape
Safety Gas Tax Transportation Measure A and Lighting
ASSETS
Cash and investments 1,602$ 241,062$ 233,193$ 896,871$ 358,684$ Receivables:

Accounts receivable 383 18,790 85,281 88,244 -
Interest receivable 7 275 216 855 274
Total assets 1,992$ 260,127$ 318,690$ 985,970$ 358,958$

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ -$ -$ 6,821$
Due to other funds - - - - -
Total liabilities - - - - 6,821
Fund Balances:

Restricted for highways
and streets 1,992 260,127 318,690 985,970 352,137
Unassigned - - - - -
Total fund balances 1,992 260,127 318,690 985,970 352,137 Total liabilities and
fund balances 1,992$ 260,127$ 318,690$ 985,970$ 358,958$ Special Revenue Funds
236
Capital Projects
City Projects
Fund Totals
1,731,412$
192,698
1,627
1,925,737$
3,165$ 9,986$
20,658 20,658
23,823 30,644
1,918,916
23,823) ( 23,823)
23,823) 1,895,093
1,925,737$
237
City of Solvang
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Skytt Mesa
Traffic Local Landscape
Safety Gas Tax Transportation Measure A and Lighting
REVENUES:

Special assessments -$ -$ -$ -$ 214,971$
Intergovernmental - 227,964 170,199 447,070 -
Interest 16 739 417 2,403 267
Charges for services 5,231 - - - -
Total revenues 5,247 228,703 170,616 449,473 215,238
EXPENDITURES:

Current:

Public works
Highways and streets - - - - 194,877
Capital outlay - - - 7,961 2,500
Total expenditures - - - 7,961 197,377

REVENUES OVER
UNDER) EXPENDITURES 5,247 228,703 170,616 441,512 17,861 OTHER FINANCING SOURCES ( USES):

Transfers in - - - - -
Transfers out ( 8,050) ( 118,122) ( 50,000) ( 6,000) -
Total other financing
sources (uses) ( 8,050) ( 118,122) ( 50,000) ( 6,000) - Net change in fund balances ( 2,803) 110,581 120,616 435,512 17,861 FUND BALANCES:

Beginning of the year 4,795 149,546 198,074 550,458 334,276 End of year 1,992$ 260,127$ 318,690$ 985,970$ 352,137$
Special Revenue Funds
238
Capital Projects
City Projects
Fund Totals
214,971$
845,233
1,650) 2,192
5,231
1,650) 1,067,627
194,877
744,273 754,734
744,273 949,611
745,923) 118,016
744,273 744,273
182,172)
744,273 562,101
1,650) 680,117
22,173) 1,214,976
23,823)$ 1,895,093$
239
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Safety Special Revenue Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Interest 50$ 50$ 16$ ( 34)$
Charges for services 10,000 10,000 5,231 ( 4,769)
Total revenues 10,050 10,050 5,247 ( 4,803)
OTHER FINANCING SOURCES ( USES):

Transfers out ( 8,050) ( 8,050) ( 8,050) -
Total other financing sources (uses)( 8,050) ( 8,050) ( 8,050) - Net change in fund balances 2,000$ 2,000$ ( 2,803) ( 4,803)$ FUND BALANCES:

Beginning of the year 4,795
End of year 1,992$
Budget Amounts
240
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental 260,507$ 260,507$ 227,964$ ( 32,543)$ Interest 1,450 1,450 739 ( 711)
Total revenues 261,957 261,957 228,703 ( 33,254)
EXPENDITURES:

Capital outlay 10 10 - 10
Total expenditures 10 10 - 10

REVENUES OVER
UNDER) EXPENDITURES 261,947 261,947 228,703 ( 33,244)
OTHER FINANCING SOURCES ( USES):

Transfers out ( 118,122) ( 118,122) ( 118,122) -
Total other financing sources (uses)( 118,122) ( 118,122) ( 118,122) - Net change in fund balances 143,825$ 143,825$ 110,581 ( 33,244)$ FUND BALANCES:

Beginning of the year 149,546
End of year 260,127$
Budget Amounts
241
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Transportation Special Revenue Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental 84,203$ 84,203$ 170,199$ 85,996$
Interest 522 522 417 ( 105)
Total revenues 84,725 84,725 170,616 85,891
OTHER FINANCING SOURCES ( USES):

Transfers out ( 50,000) ( 50,000) ( 50,000) -
Total other financing sources (uses)( 50,000) ( 50,000) ( 50,000) - Net change in fund balances 34,725$ 34,725$ 120,616 85,891$ FUND BALANCES:

Beginning of the year 198,074
End of year 318,690$
Budget Amounts
242
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure A Special Revenue Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental 1,002,739$ 1,002,739$ 447,070$ ( 555,669)$ Interest 593 593 2,403 1,810
Total revenues 1,003,332 1,003,332 449,473 ( 553,859)
EXPENDITURES:

Capital outlay - - 7,961 ( 7,961)
Total expenditures - - 7,961 ( 7,961)

REVENUES OVER
UNDER) EXPENDITURES 1,003,332 1,003,332 441,512 ( 561,820) OTHER FINANCING SOURCES ( USES):

Transfers in ( 3,000) ( 3,000) ( 6,000) ( 3,000)
Total other financing sources (uses)( 3,000) ( 3,000) ( 6,000) ( 3,000) Net change in fund balances 1,000,332$ 1,000,332$ 435,512 ( 564,820)$ FUND BALANCES:

Beginning of the year 550,458
End of year 985,970$
Budget Amounts
243
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Skytt Mesa Landscape and Lighting Special Revenue Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Special assessments 214,968$ 214,968$ 214,971$ 3$
Interest 1,500 1,500 267 ( 1,233)
Total revenues 216,468 216,468 215,238 ( 1,230)
EXPENDITURES:

Current:

Public works
Highways and streets 202,150 202,150 194,877 7,273
Capital outlay 11,000 11,000 2,500 8,500
Total expenditures 213,150 213,150 197,377 15,773
Net change in fund balances 3,318$ 3,318$ 17,861 14,543$ FUND BALANCES:

Beginning of the year 334,276
End of year 352,137$
Budget Amounts
244
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual City Projects Capital Projects Fund
For the year ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Interest 1,100$ 1,100$ ( 1,650)$ ( 2,750)$
Total revenues 1,100 1,100 ( 1,650) ( 2,750)
EXPENDITURES:

Capital outlay 795,000 795,000 744,273 50,727
Total expenditures 795,000 795,000 744,273 50,727

REVENUES OVER
UNDER) EXPENDITURES ( 793,900) ( 793,900) ( 745,923) 47,977 OTHER FINANCING SOURCES ( USES):

Transfers in 795,000 795,000 744,273 ( 50,727)
Total other financing sources (uses) 795,000 795,000 744,273 ( 50,727) Net change in fund balances 1,100$ 1,100$ ( 1,650) ( 2,750)$ FUND BALANCES:

Beginning of the year ( 22,173)
End of year ( 23,823)$
Budget Amounts
245
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STATISTICAL SECTION
This part of the Government’ s comprehensive annual financial report presents detail information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’ s overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the government’ s financial performance and wellbeing have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the government’ s most significant local revenue sources: taxes and water revenues.

Debt Capacity
These schedules present information to help the reader assess the affordability of the government’ s current level of outstanding debt and the government’ s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules help the reader understand the environment within which the government’ s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government’ s financial report relates to the services the government provides and the activities it performs.
247
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248
2012201320142015201620172018201920202021Governmental
2012201320142015201620172018201920202021Expenses:
2012201320142015201620172018201920202021Net (
2012201320142015201620172018201920202021General
2012201320142015201620172018201920202021REVENUESTaxes5, Fiscal Real Personal Total Direct
Year Property Property Totals Tax Rate
2011-2012 923,105$ 32,296$ 955,401$ 1.00%
2012-2013 924,661 32,642 957,303 1.00%
2013-2014 934,243 35,746 969,989 1.00%
2014-2015 979,763 32,966 1,012,729 1.00%
2015-2016 1,041,231 30,866 1,072,097 1.00%
2016-2017 1,105,535 32,355 1,137,891 1.00%
2017-2018 1,168,412 33,137 1,201,549 1.00%
2018-2019 1,224,324 34,740 1,259,064 1.00%
2019-2020 1,285,410 39,041 1,324,451 1.00%
2020-2021 1,390,521 40,945 1,431,466 1.00%
Source: County of Santa Barbara Assessor's Office
Assessed Taxable Values
Note: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property maybe increased by an inflation factor (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above (in our reports) represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Schedule 5
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
in thousands of dollars)
254
General
Fiscal Basic Obligation School Special
Year Rate Debt Rate Total Districts Districts
2011-2012 1.00% 0.00% 1.00% 0.05125% 0.00000%
2012-2013 1.00% 0.00% 1.00% 0.05256% 0.00000%
2013-2014 1.00% 0.00% 1.00% 0.05256% 0.00000%
2014-2015 1.00% 0.00% 1.00% 0.05256% 0.00000%
2015-2016 1.00% 0.00% 1.00% 0.05256% 0.00000%
2016-2017 1.00% 0.00% 1.00% 0.05256% 0.05762%
2017-2018 1.00% 0.00% 1.00% 0.06631% 0.06313%
2018-2019 1.00% 0.00% 1.00% 0.06362% 0.06197%
2019-2020 1.00% 0.00% 1.00% 0.06294% 0.05583%
2020-2021 1.00% 0.00% 1.00% 0.06294% 0.05646%
Source: California Municipal Statistics
Note: The City's direct property tax rates can only be changed with specific voter approval.

City Direct Rate Overlapping Rates
Schedule 6
City of Solvang
Direct and Overlapping Property Tax Rates
For The Last Ten Fiscal Years
Rates per $100 of assessed value)
255
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 29,072$ 1 2.20% Santa Ynez Band of Mission Indians 28,555$ 1 2.16% Worldmark, The Club 17,838 2 1.35% Worldmark, The Club 17,505 2 1.32% Lombard Street, LP 16,935 3 1.28% Lombard Street, LP 16,398 3 1.24% Alisal Guest Ranch 15,107 4 1.14% Alisal Guest Ranch 14,373 4 1.09% SYBCI California Hotel No. 2, LLC 14,478 5 1.09% SYBCI California Hotel No. 2, LLC 14,224 5 1.07% Solvang Hotel Group, LP 13,864 6 1.05% Solvang Hotel Group, LP 11,598 6 0.88% Garfield Beach CVS, LLC 8,660 7 0.65% 1980s Old Mission Drive, LLC 8,353 7 0.63% Alisal Oaks, LLC 8,007 8 0.60% Alisal Oaks, LLC 7,851 8 0.59% Wine Manor Management, LLC 6,931 9 0.52% Wine Manor Management, LLC 6,798 9 0.51% Oak Park Leasing, LLC 6,786 10 0.51% Oak Park Leasing, LLC 6,654 10 0.50% Total 137, 678$ 10.40% Total 132,308$ 9.99%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 28,047$ 1 2.23% Santa Ynez Band of Mission Indians 27,550$ 1 2.29% Worldmark, The Club 17,178 2 1.36% Worldmark, The Club 16,400 2 1.36% Alisal Guest Ranch 13,995 3 1.11% SYBCI California Hotel, No. 2, LLC 13,730 3 1.14% SYBCI California Hotel, No. 2, LLC 13,974 4 1.11% Alisal Guest Ranch 13,159 4 1.10% Lombard Street, LP 12,376 5 0.98% Palm Springs Inn, LLC 12,136 5 1.01% Solvang Hotel Group, LP 10,978 6 0.87% Solvang Hotel Group, LP 10,763 6 0.90% Alisal Oaks, LLC 7,698 7 0.61% Alisal Oaks, LLC 7,548 7 0.63% Wine Manor Management, LLC 6,668 8 0.53% Wine Manor Management, LLC 6,540 8 0.54% 1980S Old Mission Drive, LLC 6,645 9 0.53% Oak Park Leasing, LLC 6,369 9 0.53% Oak Park Leasing, LLC 6,524 10 0.52% M P Paso, LLC 5,303 10 0.44% Total 124, 083$ 9.86% Total 119,498$ 9.95%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 27,063$ 1 2.38% Santa Ynez Band of Mission Indians 26,696$ 1 2.49% Worldmark, The Club 16,000 2 1.41% Worldmark, The Club 17,877 2 1.67% SYBCI California Hotel, No. 2, LLC 13,490 3 1.19% SYBCI California Hotel, No. 2, LLC 13,310 3 1.24% Alisal Guest Ranch 12,337 4 1.08% Alisal Guest Ranch 12,489 4 1.16% Palm Springs Inn, LLC 11,901 5 1.05% Solvang Hotel Group, LP 10,393 5 0.97% Solvang Hotel Group, LP 10,552 6 0.93% Palm Springs Inn LLC 7,519 6 0.70% Alisal Oaks, LLC 7,401 7 0.65% Alisal Oaks, LLC 7,290 7 0.68% Wine Manor Management, LLC 6,415 8 0.56% Wine Manor Management, LLC 6,321 8 0.59% Cook, Frieda Survivors Trust 6,272 9 0.55% Cook, Frieda Survivors Trust 6,178 9 0.58% Skytt Properties, LLC 6,245 10 0.55% M P Paso, LLC 5,121 10 0.48% Total 117, 676$ 10.34% Total 113,194$ 10.56%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 26,226$ 1 2.59% Santa Ynez Band of Mission Indians 26,108$ 1 2.69% Worldmark, The Club 17,543 2 1.73% Worldmark, The Club 17,467 2 1.80% Skytt Properties, LLC 14,927 3 1.47% SYBCI California Hotel, No. 2, LLC 13,026 3 1.34% SYBCI California Hotel, No. 2, LLC 13,078 4 1.29% Alisal Guest Ranch 12,743 4 1.31% Alisal Guest Ranch 12,477 5 1.23% Solvang Hotel Group, LP 10,144 5 1.05% Solvang Hotel Group, LP 10,190 6 1.01% Kabir Bluestar, LLC 8,879 6 0.92% NWK1, Inc 7,740 7 0.76% Alisal Oaks, LLC 7,116 7 0.73%
Kabir Bluestar, LLC 7,375 8 0.73% Cook, Frieda Survivors Trust 6,030 8 0.62% Alisal Oaks, LLC 7,148 9 0.71% NWK1, Inc 5,889 9 0.61%
Cook, Frieda Survivors Trust 6,057 10 0.60% Copper Alisal Holdings, LLC 5,520 10 0.57% Total 122, 761$ 12.12% Total 112,922$ 11.64%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 25,649$ 1 2.68% Santa Ynez Band of Mission Indians 25,199$ 1 2.64% Worldmark, The Club 17,141 2 1.79% Worldmark, The Club 16,821 2 1.76% Alisal Guest Ranch 12,795 3 1.34% NWK1, Inc 12,656 3 1.32% Solvang Hotel Group, LP 9,945 4 1.04% Alisal Guest Ranch 12,604 4 1.32% SYBCI California Hotel, No. 2, LLC 9,507 5 0.99% Solvang Hotel Group, LP 10,150 5 1.06% NWK1, Inc 8,844 6 0.92% AFTC- Solvang LLC 9,350 6 0.98% Wine Valley Inn, LLC 8,732 7 0.91% Wine Valley Inn, LLC 8,589 7 0.90% Alisal Oaks, LLC 6,977 8 0.73% Alisal Oaks, LLC 6,841 8 0.72% Cook, Frieda Survivors Trust 5,912 9 0.62% Cook, Frieda Survivors Trust 5,797 9 0.61% Copper Alisal Holdings, LLC 5,520 10 0.58% Frederik' s Court, LLC 5,520 10 0.58% Total 111, 022$ 11.60% Total 113,527$ 11.88%
Source: Santa Barbara County Assessor's Office
20142015
2013 2012
Schedule 7
City of Solvang
Principal Property Tax Payers - Top Ten Payers
Last Ten Fiscal Years
Dollar Amounts in Thousands)
2018
2017 2016
2019
2021 2020
256
City of Solvang
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections within the Fiscal Total Collections
Year of the Levy To Date
Fiscal Year
Total Tax Levy
for Fiscal Year Amount
Percentage of
Levy
Collections in
Subsequent
Years
Amount
Collected
Percentage of
Levy
2011- 12 593,794$ 586,171$ 98.7% 7,363$ 593,533$ 100.0% 2012- 13 599,125 593,058 99.0% 5,786 598,844 100.0%
2013- 14 606,613 601,774 99.2% 4,543 606,317 100.0%
2014- 15 631,868 626,577 99.2% 4,859 631,436 99.9%
2015- 16 667,906 661,254 99.0% 4,911 666,165 99.7%
2016- 17 708,584 702,791 99.2% 4,195 706,986 99.8%
2017- 18 747,495 738,881 98.8% 6,281 745,162 99.7%
2018- 19 780,734 771,772 98.9% 5,974 777,746 99.6%
2019- 20 821,350 809,645 98.6% 7,206 816,851 99.5%
2020- 21 849,985 838,261 98.6%- 838,261 98.6%
Source: Santa Barbara County Auditor- Controller' s Office Schedule 8
257
Number Hotels Number Hotels
Fiscal Year
City Wide
Occupancy
Rate
Average Daily
Room Rates
50 or More
Rooms
Under 50
Rooms
2012 67% 133$ 1,947,309$ 735,631$
6 10
2013 67% 140 2,178,318 820,489
6 10
2014 68% 148 2,469,434 964,365
6 11
2015 72% 171 2,766,680 1,063,561
6 17
2016 74% 192 2,813,475 1,368,750
6 18
2017 72% 189 2,852,189 1,477,881
6 18
2018 70% 166 3,203,410 1,116,882
7 18
2019 71% 177 3,397,220 1,143,566
7 19
2020 55% 178 2,391,340 982,733
7 21
2021 59% 193 2,684,185 1,404,844
8 21
Source: City of Solvang Finance Department
Schedule 9
City of Solvang
Transient Occupancy Tax - Principal Payers and Other Data Last Ten Fiscal Years
Concentration By Hotel Size Based
on Number of Rooms
Transient Occupancy Tax
Revenues in Dollars
258
Fiscal
Year
Monthly
Base Rate
Rate
Per CCF
748 Gallons)
Outside
Users
Rate per CCF
2012 62.361 2.852 4.28

3.353 5.03
2013 65.631 3.002 4.50

3.533 5.30
2014 69.081 3.162 4.74

3.713 5.57
2015 72.711 3.162 4.74

3.713 5.57
2016 75.431 3.452 5.18

4.053 6.08
2017 75.431 3.452 5.18

4.053 6.08
2018 75.431 3.452 5.18

4.053 6.08
2019 75.431 3.452 5.18

4.053 6.08
2020 75.431 3.452 5.18

4.053 6.08
2021 75.431 3.452 5.18

4.053 6.08
Source: City of Solvang Finance Department
Notes:
1) This rate is for a 5/8" meter
2) The City of Solvang went to tiered rates, effective November 21, 2011.

This rate is for 0 to 1600 Cubic Feet.
3) This rate is for 1601 Cubic Feet and above.

Schedule 10
City of Solvang
Water Rates
Last Ten Fiscal Years
259
Single Family Multi Family
Residential Residential Commercial Other
Fiscal
Year Totals
20121 2,131,635 402,620 887,067 426,504 3,847,826
1,659 82 264 113 2,118
2013 2,343,935 379,449 897,317 578,884 4,199,585
1,687 82 263 121 2,153
2014 2,755,279 353,455 771,435 733,473 4,613,643
1,695 69 226 118 2,108
2015 2,621,212 295,474 824,286 618,427 4,359,400
1,734 70 226 118 2,148
2016 2,667,228 289,436 819,771 588,547 4,364,982
1,767 70 226 118 2,181
2017 2,762,880 309,802 774,336 637,288 4,484,306
1,780 70 222 115 2,187
2018 2,973,360 322,513 796,271 704,473 4,796,616
1,781 71 223 113 2,188
2019 2,902,029 321,349 801,045 662,831 4,687,254
1,781 71 224 113 2,189
2020 3,018,851 321,125 752,049 671,384 4,763,409
1,781 71 224 113 2,189
2021 3,193,794 335,547 771,099 747,515 5,047,955
1,781 71 224 113 2,189
Source: City of Solvang Finance Department
Notes:
1) The City changed its rate structure in November 2011, and now includes a meter charge.

Class of Customer
Revenue in Dollars and Number of Customers
Schedule 11
City of Solvang
Water Revenue Concentration Data
Last Ten Fiscal Years
Water Revenue Concentration Data
260
2021 2020 2019 2018
Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Atterdag Village Atterdag Village Atterdag Village Atterdag Village Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort City of Solvang City of Solvang City of Solvang City of Solvang Mission Oaks Mission Oaks Mission Oaks Holiday Inn Express Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Mission Oaks Solvang Mesa, LLMD Solvang Mesa, LLMD Solvang Mesa, LLMD Rancho S.Y. Mobile Estates SY Cottage Hospital Solvang School Solvang School Solvang Mesa, LLMD The Landsby/ Mad& Vin Vinland Hotel Vacations Inn Solvang Solvang School Worldmark Worldmark Worldmark Worldmark
2017 2016 2015 2014
Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Atterdag Village Atterdag Village Atterdag Village Atterdag Village Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort City of Solvang City of Solvang City of Solvang City of Solvang Hadsten House Hadsten House Hadsten House Hadsten House Holiday Inn Express Holiday Inn Express Inland Pacific Builders Holiday Inn Express Mission Oaks Inland Pacific Builders Mission Oaks Inland Pacific Builders Rancho S.Y. Mobile Estates Mission Oaks Rancho S.Y. Mobile Estates Mission Oaks Solvang School Rancho S.Y. Mobile Estates Solvang School Rancho S.Y. Mobile Estates Worldmark Worldmark Worldmark Solvang School
2013 2012
Alisal Guest Ranch Alisal Guest Ranch
Atterdag Village Atterdag Village
Chumash Casino Resort Chumash Casino Resort
City of Solvang City of Solvang
Mission Oaks Mission Oaks
N&G Investments Rancho S.Y. Mobile Estates
Oak Park Apartments Solvang LLM
Rancho S.Y. Mobile Estates Solvang School
Solvang School Wine Valley Inn
Worldmark Solvang Worldmark Solvang
Source: City of Solvang Finance Department
Fiscal Years Ended June 30
Schedule 12
City of Solvang
Principal Water Sale Purchasers - Top Ten
Last Ten Fiscal Years
In Alphabetical Order)
261
Fiscal
Governmental Unit:

Debt
Outstanding
Estimated
Percentage
Applicable2
Amount
Applicable to
Primary
Government
Direct and Overlapping General Fund Debt
Santa Barbara County Certificates of Participation 30,500,000$ 1.508% 459,940$ Santa Ynez Valley Union High School District COP 1,537,000 18.361% 282,209 Buellton Union School District Cert of Participation - 0.000% - Total Gross Direct and Overlapping General Fund Debt 742,149 Less: Santa Barbara County Supported Obligations ( 32,950) Total Net Direct and Overlapping General Fund Debt 709,199 Overlapping Tax and Assessment Debt
Allan Hancock Joint Community College District 133,075,032$ 4.589% 6,106,813 Santa Ynez Valley Union School District 11,935,000 18.361% 2,191,385 Buellton Union School district 5,718,268 0.904% 51,693
Solvang School District 9,123,721 81.344% 7,421,600
Total Overlapping Tax and Assessment Debt 15,771,491
Subtotal, overlapping debt 16,480,690 3
City of Solvang direct debt -
Total direct and overlapping debt 16,480,690$
Source: California Municipal Statistics, Inc.
3) Excludes tax and revenue anticipation notes, enterpirse revenue, mortgage revenue and non-bonded capital lease obligations.

Schedule 14
City of Solvang
Direct and Overlapping Governmental Activities Debt
As of June 30, 2021
2) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district' s assessed value that is within the boundaries of the City, divided by the district' s total taxable assessed value.

Notes:
1) Overlapping governments are those that coincide, at least in part with geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the property taxpayers of the City of Solvang. This process recognizes that, when considering the government' s ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 263
Total Debt
Applicable
Total Debt To Limit as
Fiscal Debt Applicable Percentage
Year Limit To Limit of Debt Limit
2012 143,310,234$ -$ 0.00%
2013 35,898,852$ -$ 0.00%
2014 36,374,577$ -$ 0.00%
2015 37,977,325$ -$ 0.00%
2016 40,226,713$ -$ 0.00%
2017 42,670,909$ -$ 0.00%
2018 45,058,074$ -$ 0.00%
2019 47,214,897$ -$ 0.00%
2020 49,930,185$ -$ 0.00%
2021 53,679,976$
Assessed Value 1,431,466,018$
Debt Limit (3.75% of assessed value) 53,679,976
Less debt applicable to limit:

General Obligation bonds 0
Total debt applicable to limit 0
Legal Debt Margin 53,679,976$
Sources: Santa Barbara County Assessor's Office and California Municipal Statistics, Inc.

Note: California Government Code, Section 43605 sets the debt limit at 15%. The code section was enacted when assessed valuations were based on 25% of full market value. This has since changed to 100% of full market value. Thus the limit shown is 3.75%, one-fourth the limit of 15%.

Legal Debt Margin Calculation for Fiscal Year 2021
Schedule 15
City of Solvang
Legal Debt Margin Information
Last Ten Fiscal Years
264
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2012 ----
2013 - - - -
2014 - - - -
2015 ----
2016 ----
2017 ----
2018 ----
2019 ----
2020 ----
2021 ----
Water Capital Less Net
Service Impact Operating Available
Revenues1 Fees Expenses2 Revenue Principal Interest Coverage 2012 4,206,861 23,504 3,669,942 560,423 221,387 66,235 1.95 2013 4,492,912 184,331 4,093,060 584,183 ---
2014 4,671,555 481,283 4,842,994 309,844 ---
2015 4,422,992 497,405 4,541,401 378,996 ---
2016 4,457,268 294,184 3,851,606 899,846 ---
2017 4,566, 227 102, 409 3,771, 037 897, 599 ---
2018 4,919,648 26,455 4,023,666 922,437 ---
2019 4,742, 528 35, 716 4,558, 594 219, 650 ---
2020 4,915,834 4,707 4,566,663 353,878 ---
2021 5,110, 938 22, 978 4,930, 863 203, 053 ---
Wastewater Capital Less Net
Service Impact Operating Available
Revenues1 Fees Expenses2 Revenue Principal Interest Coverage 2012 1,481,825 25,220 1,245,897 261,148 ---
2013 1,532,057 141,346 1,566,073 107,330 ---
2014 1,640, 187 265, 619 1,338, 696 567, 110 ---
2015 1,623,447 320,403 1,390,063 553,787 ---
2016 1,736, 952 201,661 1,315,685 622,928 ---
2017 1,669,291 90,875 1,630,740 129,426 ---
2018 1,824, 725 14,020 1,682,663 156,082 ---
2019 1,763,132 - 1,944,950 ( 181,818)---
2020 1,499, 245 - 2,052,784 ( 553,539)---
2021 1,417,321 - 1,802,726 ( 385,405)---
Source: City of Solvang Finance Department
Notes:
1) Water and wastewater revenues include operating revenues and interest revenues. 2) Operating Expenses exclude depreciation and amortization Debt Service
Water Installment Agreement and Capital Lease
Wastewater Capital Lease Obligation
Debt Service
Special Assessment Bonds
Debt Service
Schedule 16
City of Solvang
Pledged Revenue Coverage
Last Ten Fiscal Years
265
Fiscal Year Population1
Personal Income
Per Capita
Personal
Income2
Unemployment
Rate3
2012 5281 203,973,344 38,624 3.30%3
2013 5274 206,419,086 39,139 3.00%3
2014 5336 217,297,928 40,723 2.60%3
2015 5449 216,957,384 39,816 7.10%3
2016 5495 216,140,330 39,334 7.14%3
2017 5602 224,797,056 40,128 3.45%3
2018 5613 225,238,464 40,128 3.45%3
2019 5575 242,462,325 43,491 3.33%3
2020 5562 250,395,678 45,019 4.70%3
2021 5838 296,809,758 50,841 4.50%3
Sources: City of Solvang Finance Department
Notes:
1) State of California, Department of Finance
2) United States Census Bureau
3) State of California, Employment Development Department Schedule 17
City of Solvang
Demographic and Economic Statistics
For The Last Ten Fiscal Years
266
Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1
Alisal Guest Ranch 326 10. 87% Alisal Guest Ranch 331 111.41%Alisal Guest Ranch 369 112.30% Atterdag Village ( formerly
Solvang Lutheran Home) 163 5.43%
Atterdag Village ( formerly
Solvang Lutheran Home) 174 2 6.00%
Atterdag Village ( formerly
Solvang Lutheran Home) 177 2 5.90%
New Frontiers Market 107 3.57% New Frontiers Market 103 33.55%New Frontiers Market 115 33.83% Santa Ynez Cottage
Hospital 88 2.93%
Santa Ynez Cottage
Hospital 93 4 3.21%
Santa Ynez Cottage
Hospital 93 4 3.10%
Landsby/ Mad & Vin 69 2.30%
Solvang Unified School
District 64 5 2.21% Landsby/ Mad & Vin 65 52.17%
Solvang Unified School
District 68 2.27% Valley Fresh Market 62 62.14%
Nielsen' s Market/ Valley
Fresh 64 6 2.13%
Valley Fresh Market 65 2.17% Landsby/ Mad & Vin 58 72.00%Solvang Brew 58 71.93% Solvang Brew 51 1.70% Hotel Corque 35 81.21%
Solvang Unified School
District 57 8 1.90%
Hotel Corque 38 1.27% Nielsen Building Materials 27 90.93%Hotel Corque 54 91.80% Nielsen Building Materials 27 0.90% Solvang Brew 0* 10 0.00% Root 246 46 10 1. 53% Totals 1002 33. 40% Totals 947 32. 66% Totals 1098 36. 60% COVID related, normal count is 58
Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1
Alisal Guest Ranch 356 112.28%Alisal Guest Ranch 303 110.45%Alisal Guest Ranch 294 110.50% Atterdag Village ( formerly
Solvang Lutheran Home) 170 2 5.86%
Atterdag Village ( formerly
Solvang Lutheran Home) 170 2 5.86%
Atterdag Village ( formerly
Solvang Lutheran Home) 167 2 5.96%
Santa Ynez Cottage
Hospital 87 3 3.00%
Santa Ynez Cottage
Hospital 96 3 3.31%
Santa Ynez Cottage
Hospital 91 3 3.25%
New Frontiers Market 77 42.66%Solvang Brew 75 42.59%Solvang Brew 75 42.68% Solvang Brew 68 52.34%
Solvang Unified School
District 68 5 2. 34% New Frontiers Market 70 52.50%
Solvang Unified School
District 58 6 2.00% Nielsens Market 62 62.14%Nielsens Market 69 62.46% Landsby 55 71.90%New Frontiers Market 55 71.90%
Solvang Unified School
District 67 7 2.39%
Hotel Corque 53 81.83%Landsby 55 71.90%Hotel Corque 51 81.82% Nielsens Market 52 91.79%Hotel Corque 47 81.62%Landsby 46 91.64% Root 246 47 10 1.62% Root 246 42 91.45%Root 246 46 91.64% Totals 1023 35. 28% Totals 973 33. 55% Totals 976 34. 86% Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment Employer
Number of
Employees Rank
Percentage of
Total City
Employment
Alisal Guest Ranch 298 110.64%Alisal Guest Ranch 285 18.91%Alisal Guest Ranch 261 17.91% Atterdag Village ( formerly
Solvang Lutheran Home) 145 2 5.18%
Atterdag Village ( formerly
Solvang Lutheran Home) 130 2 4.06%
Atterdag Village ( formerly
Solvang Lutheran Home) 130 2 3.94%
Santa Ynez Cottage
Hospital 91 3 3.25% Nielsens Market 75 32.34%
Solvang Unified School
District 100 3 3.03%
Nielsens Market 69 42.46%
Solvang Unified School
District 71 4 2. 22%
Santa Ynez Cottage
Hospital 88 4 2.67%
Solvang Unified School
District 65 5 2.32%
Santa Ynez Cottage
Hospital 67 5 2. 09% Nielsens Market 63 51.91%
Solvang Brew 65 52.32%Solvang Brew 67 52.09%Root 246 50 61.52% New Frontiers Market 60 62.14%Root 246 60 61.88%New Frontiers Market 50 61.52% Hotel Corque 56 72.00%Hotel Corque 58 71.81%Hotel Corque 49 71.48% Landsby 56 72.00%New Frontiers Market 52 81.63%Hadsten House 43 81.30% Root 246 53 81.89%Hadsten House 47 91.47%City of Solvang 36 91.09% Totals 958 34. 21% Totals 912 28. 50% Totals 870 26. 36% Notes:

Sources: City of Solvang Finance Department, State of California Employment Development Department, and City of Solvang Employers 1) Total City Labor Force is 3000, based on State of California Employment Development Department Data for FY 2020- 21.

The City implemented GASB Statement Number 44 in the 2006 fiscal year, and therefore information in this schedule is being provided prospectively from the year of implementation.

Fiscal Year Ended June 30, 2018 Fiscal Year Ended June 30, 2017 Fiscal Year Ended June 30, 2016 Fiscal Year Ended June 30, 2015 Fiscal Year Ended June 30, 2014 Fiscal Year Ended June 30, 2013 Schedule 18
City of Solvang
Ten Largest Principal Employers
Last Nine Fiscal Years
Fiscal Year Ended June 30, 2021 Fiscal Year Ended June 30, 2020 Fiscal Year Ended June 30, 2019 267
Function/ Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General government:

City Council ( Stipend) 1 - - - - - - - - - -
City clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 --
City attorney ( Contract) 2 - - - - - - - - - -
City manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Economic development - - - - - - - - - -
Finance/ Admin 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 3.00 6.00 Public safety2:

Police ( Contract)----------
Fire ----------
Planning:

Planning 2.00 1.75 2.22 2.22 2.22 2.22 2.25 2.25 --
Building and safety2 1.00 0.75 0.90 0.90 0.90 0.90 0.95 0.95 - - Public works:

Engineering 2.50 0.60 0.65 1.20 1.20 1.55 2.10 2.10 1.20 1.00 Roads and streets 2.35 3.78 3.95 4.05 4.05 3.85 4.05 4.05 3.00 4.65 Maintenance 3.65 2.58 2.51 2.51 2.51 2.51 1.65 1.65 1.05 3.15 Parks:

Parks and recreation 5.50 5.84 5.84 5.84 5.84 5.81 5.30 5.00 2.00 4.00 Water:

Treatment and distribution 4.00 5.10 5.00 5.15 5.15 5.10 5.05 5.05 4.90 5.05 Wastewater:

Collection and treatment 6.00 7.10 6.90 7.10 7.10 7.00 6.95 6.95 5.85 6.95 Totals 35.00 34.50 34.97 35.97 35.97 35.94 35.30 35.00 22.00 31.80 Source: The City of Solvang Finance Department.
1) City Council are elected officials, not employees and therefore not represented. 2) No full-time equivalent employees are shown for Police, Fire, City Attorney and previous years of Building and Safety as the City had contracts for those services.

Schedule 19
City of Solvang
Full-Time Equivalent City Government Employees by Function/ Program Last Ten Fiscal Years
Fiscal Year
268
Function/
Function/
Presentation to City Council
January 10, 2022
Presented by: Ahmed Badawi, CPAPartner
1 Engagement Team
Deliverables and Scope of the Audit
Areas of Primary Emphasis
Auditors Report and Financial Statements
Required Communications
New Accounting Standards
Conclusion & Discussion/ Questions
2 3
Engagement
Partner
Ahmed Badawi,
CPA
Quality Control
Reviewer
Manager
Mitesh Desai,
CPA
Senior
Saleh Yassin,
CPA
4 Report of Independent Auditors on City of Solvang Annual Comprehensive Financial Report (ACFR)
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Agreed Upon Procedures – Appropriations Limit
Communications With Those Charged With Governance
Letter used to summarize communication of various
significant matters to those charged with governance.
5 The risk of management override of controls is addressed by the following procedures:

Assignment of audit staff based on consideration of audit risk.

Procedures to incorporate an element of unpredictability in the audit from period to period.

Consideration of the selection and application of significant accounting principles.

Examination of journal entries.

Review of accounting estimates for bias.

Evaluation of business rationale for unusual transactions.

Evaluation of the appropriateness of fraud-related inquiries performed.
6 Revenues & Receivables :( Tax, Grants, Notes and others): Improper revenue recognitions
Governmental Funds:

Confirmed/ validated property taxes, sales taxes, franchise taxes & other significant revenues/ receivables.

Proprietary Funds:

Performed analytical procedures and trends analysis on
revenues and related receivables.

Pension: Complex accounting standards
Reviewed journal entries for pension.

Reconciled amounts recorded to reports provided by CalPERS.

Tested the census information used by CalPERS.

Obtained reports from CalPERS auditors regarding plan assets and census data.
7 8
Unmodified opinion
Audit performed in accordance with Generally
Accepted Auditing Standards, and Government
Auditing Standards
Financial statements are fairly presented in all material respects
Significant accounting policies have been consistently
applied
Estimates are reasonable
Disclosures are properly reflected in the financial
statements
9 10
Cash & Receivables Capital Other Assets Deferred Outflow Investments Assets of Resources
2019 $ 24,228,652 $ 2,334,825 $ 24,936,679 $ 3,875,084 $ 1,727,521 2020 $ 24,433,586 $ 2,094,532 $ 24,218,197 $ 2,664,525 $ 1,422,497 2021 $ 25,086,152 $ 2,631,681 $ 24,296,253 $ 3,446,585 $ 1,161,856 30 25
20 15
10 5
Assets and Deferred Outflow of Resources ( Page 34)
11 Accounts
Payable and
Accrued
Deposits
Payable
Unearned
Revenues
LongTerm
Liabilities
Net Pension
Liability
Net OPEB
Liability
Deferred
Inflows of
Expenses Resources
2019 $ 1,303,940 $ 142,372 $ 53,126 $ 239,302 $ 3,937,533 $ 2,073,236 $ 516,199 2020 $ 745,234 $ 3,529 $ 32,448 $ 285,770 $ 4,310,393 $ 2,024,744 $ 483,766 2021 $ 1,492,756 $ 1,384 $ 29,183 $ 192,087 $ 4,695,870 $ 1,526,396 $ 781,861

5.3 4.5

3.8 3.0

2.3 1.5

0.8 Liabilities and Deferred Inflows of Resources (Page 35) 12 Net Investment in Restricted UnrestrictedCapitalAssets 2019 $ 24,619,634 $ 3,443,607 $ 20,773,812
2020 $ 24,218,197 $ 3,435,769 $ 19,157,197
2021 $ 24,296,253 $ 3,545,533 $ 19,924,914
25 20
15 10
5 Net Position (Page 35)
13 936,507
14 2,025,890)
957,490
2,500,000.0)
500,000.0
500,000.0)
1,500,000.0)
1,500,000.0
2019 2020 2021
Changes in Net Position (Page 3637)
2019 2020 2021
Net Cost of Service $ 7,464,746 $ 8,510,502 $ 6,124,88
1 Tax Revenue $ 7,760,500 $ 6,542,010 $ 7,515,58
1 9
8 7
6 5
4 3
2 1
Net Cost of Service to Tax Revenue (Page 37)
15 Expenditure Coverage ( Page 4244)
16 City’ s Annual Pension Contributions ( Page 91)
2019 2020 2021
Annual
Pension
Contributions
339,043 $ 369,421 $ 400,915
500
400
300
200
100
17 6/30/2019
2018 Measurement Date)
6/ 30/2020
2019 Measurement Date)
6/30/2021
2020 Measurement Date)
Plan Assets Pension Liability Net Pension Liability
12,993,726 $ 16,931,260 $ 3,937,534
13,595,591 $ 17,905,984 $ 4,310,393
14,346,522 $ 19,042,392 $ 4,695,870
21 18
15 12
9 6
3 City’s Pension Plan Funded Status (Page 91)
18 Net Pension
Liability

6.15%$ 7,231,638

7.15%$ 4,695,870

8.15%$ 2,601,122
8 6
4 2
City’s Pension Plan Sensitivity to Discount Rate (2020
Measurement Date)( Page 82)
19 City’s Annual OPEB Contributions
2019 2020 2021
189,28
8 204,647 $ 214,13
0 250
200
150
100
50 Annual OPEB
Contributions
20 Plan Assets Actuarial Liability Unfunded
2018 Measurement Date)
2019 Measurement Date)
2020 Measurement Date)
Liability
6/ 30/ 2019 $ 587,982 $ 2,661,218 $ 2,073,236
6/ 30/ 2020 $ 705,736 $ 2,730,480 $ 2,024,744
6/ 30/ 2021 $ 814,801 $ 2,341,197 $ 1,526,396

2.5 2.0

1.5 1.0

0.5 3.0
City’ s OPEB Funded Status (Page 92)
21 5.50% 6.50% 7.50%
Net OPEB
Liability $ 1,808,450 $ 1,526,396 $ 1,293,182

2.5 2.0

1.5 1.0

0.5 City’s OPEB Plan Sensitivity to Discount Rate
2020 Measurement Date)( Page 85)
22 3% 4% 5%
Net OPEB
Liability $ 1,271,963 $ 1,526,396 $ 1,836,116

2.0 1.5

1.0 0.5

2.5 City’s OPEB Plan Sensitivity to Healthcare Trend Rate (2020 Measurement Date)( Page 86)
23 24
Our UnderU. Responsibility S GAAS
Opinion on whether financial
statements are fairly stated in
accordance with U.S GAAP
Evaluate internal control over financial
reporting including tone at the top
Evaluate compliance with laws,
contract and grants
Ensure financial statements are clear
and transparent
Communicate with the governing
body
Management Responsibility
Management is responsible for the
financial statements
Establish and maintain internal control
over financial reporting
Making all financial records available to
us
Adjust the financial statements to
correct material misstatements
Establish internal control to prevent
and detect fraud
Inform us of all known and suspected
fraud
Comply with laws and regulations
Take corrective action on audit findings
25 Independence
Timing of the Audit
It is our responsibility to maintain
independence
We will maintain our independence by strict
adherence to the AICPA and the Board of
Accountancy rule
Other than compiling the financial
statements, no other services performed that
could affect our independence
Within the time frame communicated to the
City in our engagement letters
26 The City adopted the following
pronouncements during the year:

GASB Statement No. 84, Fiduciary
Activities
GASB Statement No. 90, Majority Equity
Interest
GASB Statement No. 93, Replacement of
Interbank Offered Rates
GASB Statement No. 97, Certain
Component Unit Criteria, and Accounting
and Financial Reporting for Internal
Revenue Code Section 457 Deferred
Compensation Plans – an amendment of
GASB Statements No. 14 and No. 84, and
a supersession of GASB Statement No. 32
GASB Statement No. 98, The Annual
Comprehensive Financial Report
Significant Accounting
Policies and Unusual
Transactions
27 Management Judgment and
Accounting Estimates •
Depreciation expense and related
accumulated depreciation
Defined benefit Pension and OPEB
plans (actuarial assumptions)
Sensitive Disclosures • Summary of Significant Accounting Policies
Cash and Investments
Capital Assets
Pension Plan
Other Postemployment Benefits
28 Difficulties Encountered in
Performing the Audit
None.

Significant Audit Adjustments and
Unadjusted Differences Considered
by Management to be Immaterial
Potential Effect on the Financial
Statements of Any Significant Risks
and Exposures
Management posted all proposed audit
adjustments.

No significant risks or exposures were
identified. Legal matters and potential
liabilities are disclosed in the financial
statements.

Disagreement with Management
Deficiencies in Internal Control over
Financial Reporting
None.

No material weaknesses identified.
29 Representations Requested of
Management
Management Consultation with
Other Accountants
We obtained representations from management prior
to issuance of our reports.

We are not aware of any significant accounting or
auditing matters for which management consulted
with other accountants.

Other Material Written
Communications
Material Uncertainties Related
to Events and Conditions
Fraud and Illegal Acts
Other than the engagement letters and
management representation letters, there have
been no other significant communications
There were no material uncertainties related to
events and conditions.

We have not become aware of any instances of
fraud or illegal acts, which was not disclosed by
the City.
30 Statement 87 – Leases
Statement 89 – Constructionperiod interest
Statement 92 – Omnibus (multiple effective date)
Statement 93 – LIBOR removal and lease modifications
Statement 98 – The Annual Comprehensive Financial
Report
Statement 91 – Conduit debt
Statement 94 – Publicprivate partnerships
Statement 96 – Subscriptionbased information
technology arrangements
31 32
33 Agenda Item Number: 6
Solvang City Council STAFF REPORT
PREPARED BY: Xenia Bradford, City Manager
Rodger A. Olds – Public Works Director
MEETING DATE: January 10, 2021
SUBJECT: COPENHAGEN REOPENING STRATEGY
RECOMMENDATION:

That the City consider options for the reopening of Copenhagen Drive and direct staff to proceed with the preferred option.

DISCUSSION:

In March 2020, the State and the City of Solvang declared a Health Emergency due to COVID- 19.

Under the declaration of emergency, the City Council also relaxed City regulations at the time to allow restaurants and wine tasting rooms to operate outdoors. The State regulations changed over time and there are currently no restrictions from the State on indoor dining. The County of Santa Barbara regulations continue to be more restrictive than the State and currently require face coverings when indoors.

The Federal and State response to the Covid 19 pandemic and is still in flux and it is impossible to anticipate whether outdoor dining will again be mandated for food service. The number of COVID cases in the United States has risen rapidly in the past weeks. The County of Santa Barbara showed an increase of 38% in the last week rising to 516 cases for the week. The first cases of Omicron variant have also been recorded in Santa Barbara County this past week.

In order to allow restaurants and wine tasting rooms to operate outdoors and to maintain social distancing, the City took the following actions:

1. Closed Copenhagen Drive between Alisal Drive and Second Street to vehicular traffic. Preexisting removable bollards, chains and new planters were used to provide the roadway closure. This closure eliminated one ( 1) on-street ADA parking space, fifty-nine ( 59) standard parking spaces and four (4) motorcycle parking spaces. The Downtown Solvang Parking Study indicates that there are 963 total public parking spaces in the downtown area, 563 of which are one-street parking spaces including the parking spaces currently unavailable due to the closure of Copenhagen Drive.
271

2. Issued temporary encroachment permits to allow for the use of City right of way for outdoor seating. Nineteen (19) total temporary permits have been applied for and issued, 13 of these permits are for seating and other amenities on Copenhagen Drive.

3. Erected sixteen ( 16) wooden 8’x12’ pergola structures within the closed roadway. The City also provided ten (10) tables and forty (40) chairs for the use by the public.

On August 23, 2021, the City Council directed staff to fully reopen Copenhagen Drive with the last day of closure being January 31, 2022.

On December 13, 2021 the City Council reaffirmed the desire to re-open Copenhagen and asked staff to review potential alternatives for the re-opening, including ways to safely allow some onstreet seating to remain through the existing temporary encroachment permits for outdoor dining and wine tasting.

Staff prepared analysis outlining options for potentially allowing temporary outdoor operations in the public spaces if the Council elects to pursue this option.

There are a number of restaurants and wine tasting rooms currently operating outdoors with the temporary encroachment permits on Copenhagen Drive and several other places in the City, including Mission Drive. On Copenhagen, some of the restaurant dining space has happened organically utilizing the City provided pergolas, tables and chairs, and some businesses have installed their own privately owned materials. Many businesses have also installed their own improvements including shade canopies and decorations to the City provided pergolas.

On Copenhagen Drive the seating locations or “ Parklets” have been installed without consideration of vehicular traffic because the Roadway has been closed. If parklets are to remain on Copenhagen after the roadway re-opens, some guidelines for safety will be required to be installed.

The National Association of City Transportation Officials (NATCO) provides guidance for Parklets.

NATCO is an association of 93 north American cities and transit agencies formed to exchange transportation ideas, insights, and practices and cooperatively approach national transportation issues. Nearby member cities include San Luis Obispo and Ventura.

The critical requirements indicated by NATCO include a buffer from traffic such as a wheel stop a minimum of four-feet away from the parklet and a vertical element such as a bollard or post to make them more visible to traffic. As shown in the image below:
272
Additional recommended elements for a parklet is an open guardrail to help define the space.

This “ guardrail” could take the form of installed linear planters, ropes, or other such devices to keep people from freely walking from the parklet area into the traveled way. Access into the parklet should be from the sidewalk only.

Given the low speeds on Copenhagen, staff recommends that wheel stops coupled with a single reflectorized bollard at each end of a parklet and some form of barrier “ guardrail” keeping the public from freely walking from the parklet into the roadway would need to be incorporated into any parklet on Copenhagen once the roadway is opened to traffic. Staff further recommends keeping all parklet elements 18-inches away from the traveled way. This would allow 13 ½ - feet in the angled parking areas and 6 ½ - feet in the parallel parked areas for parklet installation.

ALTERNATIVES:

Staff has prepared the following alternatives for City Council consideration:

Fully Open the Roadway – No On-Street Seating
Re-opening the roadway and revoking the temporary encroachment permits. The City would provide notification to each permitee regarding the revocation of their permit. City staff would immediately remove the provided furniture and pergolas. Five ( 5) working days would be provided for businesses who have installed their own amenities to remove them from the roadway. City staff will street sweep the roadway and repaint the on-street parking striping.

Staff will reopen the roadway on the morning of February 1st. 273
Fully Open the Roadway – Allow Privately Owned and Maintained Parklets Through the temporary encroachment permit process, the City could allow businesses to install their own privately owned and maintained parklet facilities. Staff would work with each applicant to ensure proper elements as described above would be properly implemented and maintained.

Private businesses with assurances of a longer-term occupancy, may install nicer parklet amenities than are currently provided.

Fully Open Roadway – City Provided Parklets
The existing pergolas, tables, and chairs could continue to remain in place. The City would need to install the above described parkway elements as recommended in order to allow for the parklets to remain in place safely once Copenhagen Drive is opened to vehicular traffic.

Re-assign Copenhagen to One Way – Parklets Allowed
Staff has reviewed the Copenhagen Drive for the possibility to make it a one-way roadway to provide additional width for parking and/ or parklets. Review of the roadway width revealed that the section of Copenhagen between Alisal Drive and First Street would be the only segment that would benefit by the additional width provided by the conversion to one-way. Copenhagen Drive between First Street and Second Street is already wide enough to allow two-way traffic and angled parking on both sides.

The best direction of the one-way street would be westbound in order to allow for the utilization of the existing right turn lane on Alisal Drive. A capital project would be necessary to transition the angled parking along the southern edge of the roadway, including convert one (1) raised island at the corner of Copenhagen Drive and First Street as well as modifying the existing midblock paver crosswalk to maximize potential parking spaces. A cursory review of this option reveals that up to eight (8) additional parking spaces could be gained. This could offset some of the parking lost by allowing on-street parklets.

No Action – Leave Copenhagen Closed Beyond February 1, 2022 This alternative would require some action by City maintenance crews. The installed pergola structures are in need of maintenance and repair. If the pergola structures are to remain on Copenhagen for the foreseeable future, staff recommends maintenance on these structures to improve their durability including securing these structures onto the roadway in order to ensure that they remain in the proper position and orientation.

FISCAL IMPACT:

If the direction was to remove, the pergolas, the City will incur a one-time expense to remove the street furniture, pergolas and restripe the parking. This cost will be somewhat negligible and will be absorbed into the current street maintenance budget.

To install traffic safe parklets, there would be a one-time cost of approximately $ 5,000 to convert the existing pergolas and street furniture into Parklets. This cost would be to purchase the necessary wheel stops, bollards, and cabling. City maintenance staff would complete the work in order to ensure that installed equipment meets safety requirements. There is also negligible 274
ongoing maintenance cost for the pergola structures and other street furniture. This maintenance cost will also continue should the Council decide to keep Copenhagen Drive closed.

If desired, the City could charge the businesses wishing to participate in the program a fee to reimburse for this expense.

The cost to make Copenhagen one-way and reorienting the striping has not yet been determined.

The overall cost would depend on the project scope.

It should be noted that the outdoor dining allowed businesses to survive during the original closure of the economy in March of 2020. Outdoor dining also allows customers to social distance and eat outdoors, which positively contributes to sales tax and transient occupancy tax collected by the City. Ensuring that long-standing businesses stay in business and maintaining vacancy rate in the downtown is vital to the City’ s economy beyond the immediate sales tax impact.

ATTACHMENTS:

None
275
Copenhagen Drive
Reopening

DEPARTMENT BUDGET UPDATES
Background
In March of 2020, the City of Solvang
declared Health Emergency due to
COVID- 19
In response to State restrictions on
business operations, the City relaxed
operations to:

1. Allow outdoor dining with temporary
encroachment permits onto City public
property

2. Closed Copenhagen Drive to allow for
outdoor dining and social distancing
Background
Copenhagen has been closed to vehicular
traffic since summer of 2020 to allow outdoor
dining.

City owned Pergolas have been placed and
temporary encroachment permits have been
issued to allow for restaurant seating.

City Council voted to re-open Copenhagen as
of February 2022 and directed staff to review
options for reopening Copenhagen to address
temporary outdoor business operations.

Recommendation
That the City Council consider options for the reopening of Copenhagen Drive and direct staff to proceed with the preferred option.

Options

1. Full re-opening (terminate temporary encroachment permits)

2. Full re-opening (allow private Parklet installation through encroachment permit process)

3. Full re-opening (maintain existing Pergolas and City staff install protective measures from traffic)

4. Modified re-opening (one way street/ requires capital improvement project/ not temporary option)
Undesirable Closure Impacts
Parking spaces currently unavailable:
1 ADA, 59 standard, 4 motorcycle
The total number of parking spaces in downtown area is 963 Circulation:

To fully address circulation impacts of the closure, the City will need to address the issue through Planning process and will require Capital Improvements
Positive Closure Impacts
Allowed for outdoor dining when indoor dining was prohibited or limited by the State.

Allowed for social distancing and safe tourism.

Resulted in positive revenue impacts and supported businesses to stay open.

Current COVID Conditions
103% increase in COVID- 19 cases in
the last two weeks
Total active cases in SB County 5,280
Increase in Omicron cases in the last
week
Current Health Officer order through
January 15 requiring face coverings
Full Reopening (Option 1)
No parklets or Street Furniture
City Staff to remove pergolas, street furniture, and photo booths City to revoke temporary encroachment permits
City staff to restripe parking spaces
Copenhagen Drive opened on February 1st.

Full Reopening (Option 2)
Allow Private Parklet Installation Through Encroachment Permit Process City to provide design guidelines.

Full Reopening (Option 3)

2. Provide City Owned Parklets Utilizing Existing Pergolas Appearance to remain the same. City crews to install traffic protection and secure pergolas to roadway. Street furniture/ seating to remain.

Modified Reopening (Option 4)
Copenhagen Drive to become one-way between Alisal and First Street Capital Project Required – cannot meet February 1st timeframe.

Additional cost to the City unknown
Potential benefit of up to 8 additional parking spaces
Impacts to circulation not studied.

CITY OF SOLVANG

CITY COUNCIL MEETING
JANUARY 10, 2022
AGENDA ITEM #6

COPENHAGEN REOPENING STRATEGY & TEMPORARY OUTDOOR DINING

ENCROACHMENT PERMITS
That the City consider options for the reopening of Copenhagen Drive and direct staff to proceed with the preferred option
Public Comment received after publication of Agenda
1 Annamarie Porter
To: Xenia Bradford
Subject: RE: Correspondence and article for the city council meeting January 10, 2022 Email no. 1 for meeting notations
From: Jennifer Soni
Sent: Friday, January 7, 2022 9:47 AM
To: Public City Council Group council@cityofsolvang. com> Subject: Fwd: Correspondence and article for the city council meeting January 10, 2022 Email no. 1 for meeting notations
Please scroll below the article for the initial copy that was emailed to Xenia and the Mayor.

Thank you.

Jennifer Soni
my iPhone
Begin forwarded message:

From: Jennifer Soni
Date: January 6, 2022 at 9:37:11 PM PST
To: Council@cityofsolvang. com
Subject: Correspondence and article for the city council meeting January 10,2022 Email no. 1 for meeting
Good evening,
I have been an active voice for my business and the business community since 2004. As a business owner whose business is located on Copenhagen Dr., I continue to express appreciation for the positive actions that the prior City Council permitted to assist the business community.

The time has arrived that decisions are required to insure the sustainability and enrichment of Solvang.

My correspondence was originally directed to the city manager, the Mayor, and the chamber of commerce. As of yesterday, my words have been sent to others in hope of working together to enrich our community.

I am now sending a series of emails to all of council to obtain inclusion of my thoughts to the Solvang community. It is my understanding that these comments ideas will need to be presented before 5:00pm on Friday, the 7th.

Please read my email stream. Everything is relevant.

Cordially,
Jennifer Soni
Lions Peak
my iPhone
2 Begin forwarded message:

From: Jennifer Soni
Date: January 1, 2022 at 12:25:00 PM PST
To: Xenia Bradford xeniab@cityofsolvang. com>, Charlie Uhrig charlie.uhrig@cityofsolvang. com>, tracy@solvangchamber. com Subject: Live updates: 2,300 U.S. flights cancelled amid outbreak NewsBreak
Used by over 45 million people
Live updates: 2,300 U.S. flights cancelled amid outbreak The Associated Press
DALLAS For air travelers, the new year picked up where the old one left off with lots of frustration. By midmorning Saturday on the East Coast, more than 2,300 U.S. flights had been canceled, according to tracking service FlightAware. That’s the highest single day toll yet since airlines began blaming staffing shortages on increasing COVID 19 infections among crews just before Christmas. Saturday’s disruptions weren’t just due to the virus, however. Wintry weather made Chicago the worst place in the country for travelers, with 800 flights scrubbed at O’Hare Airport and more than 250 at Midway Airport. Southwest had canceled more than 450 flights, or 13%of its schedule. SkyWest, which operates flights as American Eagle, Delta Connection and United Express, grounded more than 400 flights, or 21%of its schedule. American, Delta, United and JetBlue all scrubbed more than 100 flights each.

1 Annamarie Porter
To: Xenia Bradford
Subject: RE: Virus email No.3
From: Jennifer Soni
Sent: Thursday, January 6, 2022 10:19 PM
To: Public City Council Group council@cityofsolvang. com> Subject: Fwd: Virus email No.3
Good evening,
This is the third email.

I believe that they are all relevant. In closing, I find that the infrastructure in the Business Community must be part of the decision. Whatever direction this council makes on Copenhagen, downtown requires police security, additional bathrooms, sidewalk cleaning( daily), and code enforcement. my iPhone
Cordially,
Jennifer Soni
Lions Peak
Begin forwarded message:

From: Jennifer Soni
Date: December 24, 2021 at 5:07:28 PM PST
To: Xenia Bradford xeniab@cityofsolvang. com>, tracy@solvangchamber. com, Charlie Uhrig charlie. uhrig@cityofsolvang. com>
Subject: Virus
Good afternoon,
Wishing each of you a Merry Christmas.

I have spoken to Tracy in depth and left a voicemail message to Xenia.

I am deeply concerned about the direction that the city is taking in regards to the reopening of Copenhagen on January 31,2022. My position has been one of gratitude to the city for having the wisdom to protect our businesses during Covid.

I have been on the record of supporting a scenic downtown Danish environment for our visitors. I acknowledge that the current environment with the Parketts was not intended to be permanent nor should it remain indefinitely in its current condition. However, I do believe that it would be advantageous to take Solvang to the next tier of having a pedestrian plaza on Copenhagen.

My Vistors want this environment and are not worried about paying for parking.

What I am deeply concerned about at this time is the rising number of the current variants of virus infections. As I write you events are the canceled and airlines are canceling flights. My physician believes that we shall see the closure of indoor dining and tastings, etc.

As a business owner, I speak for myself and others. As leaders for Solvang it is paramount that you formulate a plan to protect our business community in the event we are no longer permitted by the county and state to serve inside our rented business location. 2 This is necessary and my belief is that we can achieve a successful environment for all stakeholders in the business community.

I am at your service to offer my thoughts and actions in a positive direction to each of you and the business community of Solvang.

I understand your position in regards to the parketts. I have concerns myself on the negative appearance, etc. It is necessary that we have a plan that offers protection to our business community that is functional and esthetically pleasing and offers cohesiveness in the downtown community. I encourage you to act.

Merry Christmas and Happy New Year!
Jennifer Soni
Lions Peak
www.Lionspeakwine. com
my iPhone
Eric Hutchins
DT: January 10, 2021
TO: The people of Solvang, community activists, and members of the City Council FIR: Eric Hutchins, Solvang resident, employee of a business located on Copenhagen Dr.

RE: What to do on Copenhagen Dr. AND WHEN
The overwhelming majority of those living and/ or working in the Solvang community recognize that every life is precious and that the revenues from businesses operating in the central district are vital to the continued overall economic well- being of our community. In this context, we are again considering ( 1) what to do on Copenhagen Dr. and ( 2) when to do it.

As inconvenient as the COVID pandemic has proven to be, it is the reason that food and beverage services on Copenhagen, Mission, and elsewhere have been allowed to serve out of doors under makeshift canopies. The gain has been the health and safety of visitors, employees, and business owners and the economic survival of this community. I submit that simple observation and common sense mandate that the canopies remain in place to allow outdoor dining for at least another three months. Here are some points to consider:

1. Roughly 95% of visitors are concerned enough about COVID to continue wearing masks on the streets of the Solvang business district. This suggests that health continues to be a primary concern for those on whom our community economy vitally depends.

2. Citing their concern regarding the transmissibility of COVID, roughly 70% of our customers ask if they can sit outside. The remaining 30% ask to sit inside citing the outside temperature. Of these, roughly five out of six individuals choose to sit under our outdoor heaters and one out of six decides not to stay.

3. It was reported this morning that 6 million Californians have now tested positive for the Omicron variant of COVID and volunteer committees for the City of Solvang are again canceling in -person meetings in favor of Zoom meetings.

4. The California executive and legislative branches have extended COVID policies that allow restaurants and tasting rooms to continue serving outside for up to one year beyond the lifting of emergency COVID orders.

These and similar facts make it clear that, with regard to this pandemic, ( A) " timing is everything;" and ( B) now is not the time to risk the health and safety of visitors, workers like myself, and business owners by taking away outdoor dining, wine tasting, etc. eric@Eric Hutchins. name
Eric Hutchins Page 2
If this is doubted, consider the risks:

1. If the City Council keeps Copenhagen open to outdoor dining and no one becomes seriously ill or dies, then things remain as they have been over the last eighteen months for an extra three months.

2. On the other hand, if the Council forces businesses to serve inside ( in order to keep from going out of business) and someone becomes seriously ill or dies, then it is arguable that Council actions were the enabling cause of this tragedy, particularly in light of the other actions and accommodations being taken at this time by Solvang City, Santa Barbara County, and California state official to suppress the spread of COVID.

In addition, I think we have to ask which of the following headlines we would like to see on the front page of the Los Angeles Times:

1. " City of Solvang Remains Open for Outdoor Dining and Wine Tasting" or

2. " City of Solvang Forces Visitors to Eat and Taste Wine Indoors While COVID Cases Continue to Rise."
Rather than take the risk of serious illness or death in our community, I urge the Solvang City Council to (A) let the Solvang business community continue serving visitors outside for another three months until COVID numbers improve and other bell weather COVID measures are lifted; and in the interim ( B) continue discussing how the business portion of our community can perfect outdoor dining and tasting both as preparation for the next pandemic and as a step toward becoming " The Danish Capital of America" in fact as well as in hubris.

Respectfully,
r
Eric Hutchins
eric@Eric Hutchins. name
Agenda Item Number: 7
Solvang City Council STAFF REPORT
PREPARED BY: Xenia Bradford, City Manager
Annamarie Porter, City Clerk
MEETING DATE: January 10, 2022
SUBJECT: CITY COUNCIL REORGANIZATION
RECOMMENDATION:
a. Designate the Mayor Pro Tem for 2022; and
b. Designate the Seating Arrangement for 2022; and
c. Make Council member Appointments to Boards and Committees DISCUSSION:

Designate Mayor pro tempore
The City of Solvang Municipal Code Section 1-4-6 calls for the duties of Mayor or Mayor pro tempore in his/her absence. Typically, Mayor pro tem is appointed by majority of the City Council on an annual basis.

Municipal Code Section 1-4-6 language is cited below:
1-4-6: PRESIDING OFFICER:

A. Designated; Call to Order: The Mayor, or in his absence, the Mayor pro tempore, shall take the chair at the hour appointed for the meeting and shall call the City Council meeting to order. In the absence of the Mayor, the City Clerk or designee shall call the City Council meeting to order, whereupon a temporary Chair shall be selected by the Council members present. Upon the arrival of the Mayor or the Mayor pro tempore, as the case may be, the person who is then presiding shall relinquish the chair at the conclusion of the business then before the City Council.

B. Powers and Duties: The presiding officer shall assume his place and duties, as such, immediately following his election. He shall preserve strict order and decorum at all City Council meetings, state questions coming before the City Council, announce its decision on all subjects and decide all questions of order; subject, however, to appeal by a Council member to the City Council as a whole, in which event the majority shall govern and conclusively determine such questions of order.

He may vote on all questions and on roll call his name should be called last. The Mayor shall sign all ordinances and resolutions adopted and contracts approved by the City Council at meetings at which he is in attendance. In the event of his absence, the Mayor pro tempore shall sign such documents as have been adopted and approved by the City Council at such meetings.

In the absence of the Mayor and the Mayor pro tempore, the temporary Chair shall sign such documents as have been adopted and approved at the meeting at which he presided. The presiding officer controls public debate so that where public participation is in order, everyone will have a chance to speak before other persons have a second chance to speak and to expedite business at hand. (Ord. 14-305, 2-10-2014)"
City Council protocols, which are an agreement between Councilmembers, adopted on January 11, 276
2021, set Council policy as follows.

3.2 Selection of Mayor and Mayor Pro Tem
The Solvang Charter states, the Mayor shall be elected at the general election on a general ticket from the City at large. The term for Mayor shall be two years, and Mayor Pro Tem shall be one year, commencing at the first meeting in December of each year.

The first criteria for selection of the Mayor Pro Tem shall be that Council Member who has served at least one year on the Council and has not previously served as Mayor Pro Tem. If more than one Council Member has not previously served as Mayor Pro Tem, then from such Council Members, the Council Member with the greatest seniority in terms of consecutive years of service shall be selected. A Council Member shall have the right to decline the position if they so choose. If there is still more than one Council Member eligible according to seniority, the Council Member who received the highest number of votes for the most recent election of each Council Member eligible by reason of seniority shall be selected as Mayor Pro Tem. However, no Council Member shall serve more than one term as Mayor Pro Tem until all of the Council Members have served or declined to serve.

The following Councilmembers have not served as Mayor Pro Tem. Both Councilmember Infanti and Councilmember Thomas took office in December of 2020. Below are also the election vote records.

Council Member ( 4 year term)
Mark L. Infanti 1,625 votes ( 30.44%)
City of Solvang City Council Member – Recall: For City of Solvang Councilmember to succeed Niels Chris Djernaes if he is recalled. Term Ending December 2022.

Jim Thomas 2,282 (71.56%)
Seating Arrangement
Council Protocols set the following policy for seating arrangement.

3.5 Seating Order
In the absence of a consensus by Council Members at the time of the Council reorganization, the Mayor shall have the prerogative to designate the seating order for the Council dais. This seating arrangement can be overruled by a majority of the Council.

Council Representative on Boards and Committees and outside agencies Council Protocols section 5.4 Appointments to Outside Committees Council Members are requested to serve on various boards and committees for outside agencies.

Annually, the City Council shall review the list of current assignments and make recommendations for appointments, subject to approval by the majority of the Council. The list of current Board and Committees is attached in Attachment A.

The following are the current appointments:
277
In addition to these committees, the City by majority Council vote, joined the Monterey Bay Community Power Joint Powers Authority in 2019. The Authority has since been renamed to Central Coast Community Energy. In 2002, the State Legislature adopted Assembly Bill 111, which created Community Choice Aggregation ( CCA) or Community Choice Energy ( CCE) in California. CCE is a state law that allows cities, counties and other authorized entities to aggregate electricity demand within their jurisdictions to purchase and/or generate electricity supplies for residents and businesses within their jurisdiction while maintaining the existing investor owned utility provider for billing, physical transmission and distribution services. The City of Solvang shares a seat with the City of Guadalupe.

The cities take a two-year rotating lead representing on the Board of Policy Directors. The City of Solvang is the representative for the next two year term ( 2022- 2024). Typically, the Mayor serves as the representative; however, the Council may elect another Council member as representative of the City by majority vote.

Finally, the City added representation on the Santa Barbara County Library Advisory Committee within the past year. Councilmember Robert Clarke is the current appointee to this committee.

FISCAL IMPACT:

None
ATTACHMENTS:

Attachment A - 2022 Boards & Committees
Attachment B - Central Coast Community Energy Ordinance and Resolution 278
Attachment A
2022

SB COUNTY ASSOCIATION OF GOVERNMENTS ( SBCAG)

AIR POLLUTION CONTROL DISTRICT ( APCD)

CALIFORNIA JOINT POWERS AUTHORITY ( JPIA)

LEAGUE OF CALIFORNIA CITIES

GROUNDWATER SUSTAINABILITY AGENCY ( SGMA)

COUNCIL REPRESENTATION ON BOARDS AND COMMITTEES
A regional planning agency comprised of Santa Barbara County and all eight incorporated cities within the county. SBCAG distributes local, state, and federal transportation funds and acts as a forum for addressing regional and multi-jurisdictional issues. Also includes North County Sub-Regional Planning Committee.

Meets once per month rotating between Santa Barbara or Santa Maria. North County SubRegional Planning Committee also meets once per month, in Solvang.

A local agency charged with control of air pollution from all sources except motor vehicles. In 1994 State legislation added city representatives to the APCD governing board.

The Board of Directors has seven meetings per year, in either Santa Barbara or Santa Maria.

Municipal self-insurance pool providing risk management education and liability protection from losses and lawsuits to its members. One individual from each member of the Authorityis selected by the legislative body to participate on the Board of Directors.

The CJPIA Board of Directors holds an annual business meeting each July.

An Association of California City officials who work to educate, exchange information and combine resources to influence State policy decisions that affect cities. One member of Council is selected as the Solvang representative.

Attendance at the Annual Conference typically in October as the Voting Delegate forSolvang.

Established to preserve the authority and responsibility of cities and counties to sustainably manage their respective groundwater basin.

The Agency typically meets on 4th Thursday of the second month of each quarter. 279
ORDINANCE NO. 19- 0340

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOLVANG,

CALIFORNIA, AUTHORIZING THE IMPLEMENTATION OF A

COMMUNITY CHOICE AGGREGATION PROGRAM BY PARTICIPATING

IN MONTEREY BAY COMMUNITY POWER' S COMMUNITY CHOICE

AGGREGATION PROGRAM
WHEREAS, the City Council has previously directed staff to investigate the feasibility and formation of a Community Choice Aggregation ( CCA) program under the provisions of the Public Utilities Code section 366. 2 in order to provide electric service to customers within the City of Solvang ( City) with the intent of achieving reduced greenhouse gas emissions, local renewable power development, competitive electric rates, and the implementation of energy conservation and other energy programs; and
WHEREAS, Monterey Bay Community Power Authority ( MBCPA) is an established CCA program capable of providing the desired financial and environmental benefits, and WHEREAS, MBCPA will enter into agreements with electric power suppliers and other service providers and, based upon those agreements, MBCPA will be able to provide power to residents and businesses at rates that are competitive with those of the incumbent utility PG& E"). Once the California Public Utilities Commission certifies the amended Implementation Plan adopted by MBCPA, MBCPA will be able to provide service to customers within the City; and
WHEREAS, under Public Utilities Code section 366. 2, customers have the right to optout of a CCA program and continue to receive service from the incumbent utility. Customers who wish to receive service from the incumbent utility will be able to do so; and WHEREAS, on September 09 and September 23, 2019, the City Council held public meetings on the manner in which the City will participate in a CCA program at which time interested persons had an opportunity to testify either in support of or opposition to the implementation of a CCA program serving the City through MBCPA; and WHEREAS, this ordinance is exempt from the requirements of the California Environmental Quality Act ( CEQA) pursuant to the CEQA Guidelines, as it is not a " project" as it has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. ( 14 Cal. Code Regs.§ 15378( a)). Further, the ordinance is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a significant effect on the environment. ( 14 Cal. Code Regs. § 15061( b)( 3)). The ordinance is also categorically exempt because it is an action taken by a regulatory agency to assume the maintenance, restoration, enhancement or protection of the environment. ( 14 Cal. Code Regs. § 15308).

NOW, THEREFORE, be it ordained by the People of the Chartered City of Solvang that based on the foregoing, and in order to provide businesses and residents within the City a choice of power providers and with the benefits described above, the City Council hereby elects to implement a community choice aggregation program within the jurisdiction of the City by participating as a group in the Community Choice Aggregation Program of MBCPA, as generally described in its Joint Powers Agreement.

SECTION 1. The above recitations are true and correct and material to this Ordinance. 280
Ordinance No. 19-
ie Page 2
SECTION 2. This Ordinance shall take effect 30 days after its adoption. The City Clerk, or her duly appointed deputy, shall attest to the adoption of this Ordinance and shall cause this Ordinance to be published and posted in the manner required by law.

SECTION 3. Solvang is a Charter City and has adopted its own rules for summarizing and posting ordinances once they are adopted. A summary of this ordinance will be prepared by the City Attorney. The summary will be posted in three locations after adoption as directed in the Solvang Municipal Code. A true and correct copy of the full ordinance together with a record of the vote of each councilmember shall be kept by the City Clerk.

PASSED, APPROVED AND ADOPTED on the 23rd day of September, 2019.

B
Ryan Toussaint, Mayor
ATTEST:

Lisa rMartin, City Clerk

STATE OF CALIFORNIA

COUNTY OF SANTA BARBARA )

CITY OF SOLVANG
I, Lisa S. Martin, City Clerk of the City of Solvang, do hereby certify that the foregoing Ordinance had its first reading on September 09, 2019 and was adopted on second reading on September 23, 2019 by the following roll call vote:

AYES: Mayor Toussaint, Council Members Djernaes, Johnson, and Waite NOES: Council Member Clarke
ABSENT:

ABSTAIN:

By:

Lisa S. Martin, City Clerk
281
RESOLUTION NO. 19- 1085

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SOLVANG, CALIFORNIA,

REQUESTING MEMBERSHIP IN THE MONTEREY BAY COMMUNITY POWER

JOINT POWERS AUTHORITY( MBCPA) AND AUTHORIZING THE MAYOR OR CITY

MANAGER TO EXECUTE THE JOINT POWERS AUTHORITY AGREEMENT AS

AMENDED WITH MBCPA
WHEREAS, AB 117, adopted as California state law in 2002, permits cities, counties, or Joint Power Authorities comprised of cities and counties to aggregate residential, commercial, industrial, municipal and institutional electric loads through Community Choice Aggregation CCA); and
WHEREAS, pursuant to Section 366. 2 of the Public Utilities Code, two or more entities authorized to be a community choice aggregator may participate as a group in a community choice aggregation program through a joint powers agency established pursuant to Chapter 5 commencing with Section 6500) of Division 7 of Title 1 of the Government Code, if each entity adopts the aforementioned ordinance; and
WHEREAS, in March 2017, MBCPA was established as a joint powers agency pursuant to a joint powers agreement; and
WHEREAS, the purpose of MBCPA is to address climate change by providing locally controlled carbon- free electricity at affordable rates; and WHEREAS, the City Council supports the mission of MBCPA and its intent to promote the development and use of a wide range of carbon free and renewable energy sources and energy efficiency programs, including solar and wind energy production at competitive rates for customers; and
WHEREAS, in order for the City of Solvang ( City) to become a member of MBCPA, the MBCPA Joint Powers Agreement must be amended to permit the City join as a party; and WHEREAS, MBCPA also has requested the City adopt a resolution requesting membership in MBCPA and authorizing its Mayor or City Manager to execute the JPA as amended, as well as an ordinance authorizing Community Choice Aggregation ( CCA) within its jurisdiction; and
WHEREAS, the City wishes to be a community choice aggregator pursuant to the JPA and has introduced the Ordinance required by Public Utilities Code Section 366. 2 in order to do so; and
WHEREAS, under Public Utilities Code section 366. 2, customers have the right to optout of the CCE program and continue to receive service from the incumbent utility.

Attachment B
282
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Solvang:

SECTION 1. The City Council of the City of Solvang requests the Board of Directors of MBCPA approve the City as a member of MBCPA.

SECTION 2. The Mayor or City Manager is hereby authorized and directed to execute the JPA on behalf of the City after the JPA is amended, which will establish the City' s membership in MBCPA.

SECTION 4. This resolution shall be effective immediately upon passage and adoption.

PASSED, APPROVED AND ADOPTED this
9t'
day of September, 2019, by the
following roll call vote:

AYES: Mayor Toussaint, Council Members Djernaes, Johnson, and Waite NOES: Council Member Clarke
ABSENT
ABSTAIN:

Ryan Toussaint, Mayor
ATTEST:

Lisa S. Martin, City Clerk
283

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF SOLVANG AND

CITY OF GUADALUPE

REGARDING PARTICIPATION WITH
This MEMORANDUM OF UNDERSTANDING ( MOU) is hereby made and entered into by and between the City of Solvang, a California Municipal Corporation and Charter City, hereinafter referred to as SOLVANG, and the City of Guadalupe, a California Municipal Corporation, hereinafter referred to as GUADALUPE ( SOLVANG AND GUADALUPE) hereinafter individually referred to as " party" and hereinafter collectively referred to as the " parties.").

A. INTRODUCTION
In September 2019, SOLVANG and GUADALUPE jointly pursued community choice energy programs for the purpose of providing choice in the electricity market, reducing greenhouse gas emissions, proving potential rate savings, supporting energy efficiency, promoting regional collaboration, and contributing to economic development. The two cities pursued participating in a community choice energy program by joining Monterey Bay Community Power ( MBCP). On December 4, 2019, SOLVANG and GUADALUPE will become official members ofMBCP
As outlined in the MBCP Joint Powers Agreement, the agency is governed by two decision making bodies and one advisory body:

The Policy Board is comprised of elected officials and meets quarterly to decide high level policy decisions.

The Operations Board is comprised of City Managers or their designees and meets approximately eight times per year to decide finer detailed operational decisions.

The Community Advisory Council is comprised of community members and serves in an advisory role to the Policy Board and Operations Board.

MBCP is a large agency and to ensure manageable meetings, smaller jurisdictions share seats on the Policy Board and Operations Board. Jurisdictions with 50, 000 or more residents have permanent seats, while smaller jurisdictions share seats based on geographic proximity. Since SOLVANG and GUADALUPE are smaller than 50, 000 each, the two cities will share a Policy Board and Operations Board seat. Additionally, MBCP has communicated that the two cities may select one Community Advisory Council member.

On September 23, 2019, both City Councils voted unanimously to direct staff to negotiate a Memorandum of Understanding between SOLVANG and GUADALUPE to provide a collaborative and fair strategy for MBCP representation and to return to their respective Councils for final approval.

B. PURPOSE
The purpose of this Memorandum of Understanding is to identify a clear framework between SOLVANG and GUADALUPE to share governance seats on Monterey Bay Community Power' s Policy Board, Operations Board, and Community Advisory Council.