Agenda — Solvang City Council, June 24, 2024

Agenda 2024-06-24 CC
AGENDA

SOLVANG CITY COUNCIL
MONDAY JUNE 24, 2024
5:30 PM SPECIAL CLOSED
6:30 PM REGULAR MEETING
City Council: 1644 Oak Street, Solvang, Ca 93463
Mark Infanti, Mayor Virtual & in Council Chamber
David Brown Mayor pro tem, District 3
Elizabeth Orona District 4
Robert Clarke at-large
Claudia Orona at-large
PARTICIPATING IN THE MEETING -City Council meetings will be in person and conducted by video/teleconferencing through Zoom. The meeting will also be broadcast live on Channel 23 and streamed on the City’s website, Vimeo, and YouTube.
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5:30 PM SPECIAL CLOSED SESSION

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE
0BAGENDA AND SUPPORTING MATERIALS – Available for viewing 8:00a.m.-5:00p.m. at City Hall, 1644 Oak Street, Solvang, and on the City’s website https://www.cityofsolvang.com/agendacenter. Additional writings distributed to a majority of the City Council after the posting of the agenda will be made available at City Hall and on the City’s website.
1BAGENDA POSTING NOTIFICATION - Subscribe to receive email or text message notifications when agendas are posted online through “Notify Me” at: https://www.cityofsolvang.com/List.aspx 2BPUBLIC COMMENT - The public is encouraged to address the City Council in-person, virtually, or in-writing on agenda and non-agenda items. If provided in writing, comments must be submitted to the City Clerk at [email protected] by 5:00 p.m. on the Friday before the meeting to be considered. Your comment will be recorded and distributed appropriately. Comments on agenda items will be heard at the time each item is considered, including non-agenda items. In-person speakers will be invited to make public comments first.

Virtual speakers will follow.

CAMPAIGN CONTRIBUTION DISCLOSURE - Pursuant to Government Code Section 84308, any party to a City proceeding must disclose on the record any campaign contributions made to a member of the City Council [or commission] in excess of $250 in the past 12 months. This disclosure requirement includes contributions by the party’s agent and aggregated contributions from persons or entities related to the party. Please make the disclosure as soon as possible, but not later than the beginning of the proceeding. 3BAMERICANS WITH DISABILITIES ACT - If, as a participant of this meeting, you need special assistance the City will attempt to accommodate you in every reasonable manner. Please contact the City Clerk at either (805) 688-5575 x206 or [email protected]. 72- hours’ notice is requested 1 Agenda 2024-06-24 CC

1. PUBLIC COMMUNICATIONS ON CLOSED SESSION ONLY
This section is intended to provide members of the public with the opportunity to comment on Closed Session Items. This section is limited to 30 minutes. Each speaker will be afforded three minutes and may speak only once.

2. RECESS TO CLOSED SESSION
a. CONFERENCE WITH LABOR NEGOTIATORS – pursuant to Government Code Section 54957.6
Agency designated representative:

Chelsea O’Sullivan, City Attorney
Unrepresented employee:

City Manager

RECONVENE TO OPEN SESSION

3. ANNOUNCEMENT OF CLOSED SESSION ACTIONS

4. ADJOURNMENT
6:30 PM REGULAR MEETING

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

1. PROCLAMATIONS, COMMENDATIONS AND CEREMONIAL ITEMS:

2. PRESENTATIONS:

3. PUBLIC COMMUNICATIONS – NON- AGENDA AND CONSENT 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 on Consent. 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 act on issues not on the agenda, except to briefly respond or ask Staff to follow up on such items.

4. CITY MANAGER REPORT AND ADVANCE CALENDAR
Informational Report 5

5. GC SECTION 53232.3(d) (aka AB 1234) and GC SECTION 84308 (aka SB 1439) REPORT OUT,

COUNCIL COMMENTS, REQUESTS
Reports of meetings attended, contributions made or received, and Comments and requests from City Council Members.

6. CONSENT ITEMS
Consent is designed for routine; administrative city matters and is approved by roll call vote with one motion.

These items are discussed only at the request of council members. Members of the public were afforded an opportunity to speak on Consent items during the Public Communications portion of this agenda. a. Approve Order of Agenda as Presented.
b. Approve City Council Minutes: June 10, 2024 6
2 Agenda 2024-06-24 CC
c. Receive and file May Monthly Financial Report. 13
d. Approve Amendment 7 to the Agreement with GSI Water Solutions Inc to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City 14 e. Adopt Resolution No. 24-1264 Approving the FY 2024-25 List of Projects to be funded by the SB 1 Road Repair and Accountability Act and Repealing Resolution No. 24-1242 16 f. Approve Amendment 5 to the Agreement with ZWorld GIS LLC for GIS Web application and subscription services for the additional amount of $37,500. for a total contract amount not to exceed $370,500, and to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City. 20
g. Approve Amendment 6 to the Agreement with Mintier Harnish LP to complete the General Plan Update process and implement the 2023-2031 Housing Element to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City 50 h. Approve an Agreement with Solvang Hygge Husset LLC for Solvang Visitor Center Services for the amount not to exceed $152,970. per year for a total contract amount not to exceed $305,940. for the term July 1, 2024 – June 30, 2026, and authorize the Mayor to execute on behalf of the City 53
i. Approve Amendment 4 to the Agreement with Urban Concepts for Planning Division Consultant Services for the additional amount not to exceed $150,000 for a total contract amount not to exceed $587,000 and to extend the term to December 31, 2024, and authorize the Mayor to execute on behalf of the City. 77
j. Approve Amendment 3 to the Agreement with Wildan Engineering for building plan review, building inspection, building official services, and permit counter technician services for the additional amount not to exceed $200,000, for a total contract amount not to exceed $786,595., and to extend the term to June 30 2025, and authorize the Mayor to execute on behalf of the City 80
k. Approve Amendment 2 to the Agreement with Tetra Tech Inc for Staffing Engineering Services for the additional amount of $83,200, for a total contract amount not to exceed $249,600 and to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City. 110

7. PUBLIC HEARINGS:
a. Public Hearing to consider adopting Resolution No. 24-1265, amending the Appropriation Limit for fiscal year 2024-2025 Pursuant to Article XIII B of the California Constitution 114

8. DISCUSSION ITEMS
a. Approve Amendment 2 to the agreement with MNS Engineers, Inc for engineering support and environmental permitting, for the South Alisal Emergency repair Project for the additional amount not to exceed amount of $7,110 for a total contract amount not to exceed $194,278, and extending the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City. 117 b. Approve Amendment 2 to the agreement with MNS Engineers, Inc for annual implementation, support, and compliance with the City’s Storm Water Management Plan Permit for the additional amount not to exceed amount of $133,000 for a total contract amount not to exceed $351,950, and extending the term to June 30, 2025 and authorize the Mayor to execute on behalf of the City. 140 c. Discussion and possible action to Adopt Resolution No. 24-1266 Adopting a Biennial Budget for Fiscal Years 2024-2026 161
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9. COUNCIL CLOSING COMMENTS

10. 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 revised notice was posted at the City of Solvang City Hall bulletin board at 1644 Oak Street, Solvang, CA and on the City of Solvang website not less than 72 hours prior to the meeting, per Government Code 54954.2.

Dated this 21st day of June 2024
4 Meeting Date Agenda Item Agenda Dept
8-Jul CCCE presentation Presentation City Manager
Administration / HR Policies update Discussion Administration General Plan EIR Reso Public Hearing Planning
Adopt General Plan Reso Public Hearing Planning
Active Transportation Plan Discussion Public Works
City Manager Contract Renewal Consent City Attorney
City Council Policies review Discussion City Clerk
Report of Public Records Requests Jan 1 - Jun 30 Consent City Clerk 22-Jul General Plan Adopt Ordinance Consent Planning
Marketing & Tourism Quarterly Update Presentation Parks & Rec 12-Aug City Council Goals Quarterly Update Consent City Manager Select Cal Cities Voting delegate & alternate Discussion City Clerk Alamo Pintado Bridge Project Presentation City Manager
Approve Capital Improvement Program Discussion Fin/Public Works 26-Aug Frontier Communications Presentation City Manager Zoning Ord to implement GP 1st Reading Public Hearing Planning 9-Sep Zoning Ordinance to implement GP 2nd reading Consent Planning Sign Ordinance review Discussion Planning
23-Sep Cal Cities Legislative Update Presentation City Manager Special Event weekends impacts on busineses Discussion Parks & Rec Future Meetings RFQ Interim Financing WWTP Administration Discussion Finance Stormwater Management Program Update Discussion Public Works Short Term Vacation Rental update Discussion Finance/Planning Outdoor dining ordinance Public Hearing Planning
Modify City Code Title 9, Chapter 3, 9-3D-3 Water
Conservation
Public Hearing Utilities
Meeting Date Agenda Item Agenda Dept
Fire abatement and brush removal program Discussion City Manager On-street Parking Restrictions Policy Direction Discussion Public Works Agenda Item Agenda Dept
January Annual Comprehensive Financial Report Discussion Finance January (odd
years)
Brown Act, Public Records Act, Levine Act Training Presentation City Attorney January Fee Schedule Review Discussion Finance
January Investment Policy Annual Review Discussion Finance February (even
years)
Budget to Actual Discussion Finance
February Measure A 5-Year Local Program of Projects Public Hearing Public Works February Mid-Year Budget Adjustments Finance
February (even
years)
Council Budget Goal Setting Public Workshop City Manager March Housing General Plan Annual Report Discussion Planning March SB1 RMRA project List Public Hearing Public Works March Solvang Mesa LLMD Annual Assessment Public Hearing Public Works March FTA 5311 Grant Agreement Consent Public Works
March TDA Grant Funding Consent Public Works
May (even years) Ordinance 1st Reading & Adoption Conflict of Interest Public Hearing City Attorney May Grant Funding Applications review Discussion Finance Oct/Jan/April/July Quarterly Financial Reports Discussion Finance Oct/Jan/April/July Quarterly Marketing Update Presentation Parks & Rec June Preliminary Budget Discussion Finance
June Two-Year Financial Plan Development or Supplemental Budget adoption
Discussion Finance
June Capital Improvement Program Discussion FIN/Public Works June/July Amend Appropriation Limit Public Hearing
November Stormwater Management Program Annual Report Consent Public Works December AB 1600 Report Discussion Public Works
December City Council Reorganization - Appointment of Mayor pro tem
Discussion City Clerk
December City Council Reorganization Council selection of representatives to Committees and Agencies
Discussion City Clerk
December (even
years)
Appointment to Boards, Commissions, Committees Discussion City Clerk Council Requested Agenda Items
Annual Reports

CITY COUNCIL ADVANCE CALENDAR
5 M 2024-06-10 CC 1
Special Closed Session – 5:30 PM
Regular Meeting - 6:30 PM
5:30 PM SPECIAL CLOSED SESSION

CALL TO ORDER
Mayor Infanti called the Special Closed Session meeting to order at 5:30 p.m. in the City Hall Council Chamber, 1644 Oak Street, Solvang, California.

ROLL CALL

Present: Mayor Mark Infanti, Mayor pro tem David Brown, Councilmembers Robert Clarke, Claudia Orona, Elizabeth Orona
Staff: City Manager Randy Murphy, City Attorney Chelsea O’Sullivan, City Clerk Annamarie Porter

PLEDGE OF ALLEGIANCE
Councilmember Elizabeth Orona led in the Salute to the Flag.

1. PUBLIC COMMUNICATIONS ON CLOSED SESSION ONLY
There were no public comments on Closed Session Items.

2. RECESS TO CLOSED SESSION
a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION – pursuant to Government Code Section 54957(b)(1)
Title: City Manager
b. CONFERENCE WITH LABOR NEGOTIATORS – pursuant to Government Code Section 54957.6
Agency designated representative:

Chelsea O’Sullivan, City Attorney
Unrepresented employee: City Manager
Mayor Infanti adjourned to Closed Session at 5:36 p.m.

RECONVENE TO OPEN SESSION
Mayor Infanti reconvened to Open Session at 6:27 p.m. with all Councilmembers, present.

3. ANNOUNCEMENT OF CLOSED SESSION ACTIONS
City Attorney O’Sullivan reported that regarding Closed Session Item 2.a, the Employee Performance Evaluation was held and there is no further reportable action. Furthermore, relative to Closed Session Item 2.b, there is no reportable action and the matter subject to further negotiation.

MINUTES

SOLVANG CITY COUNCIL
MONDAY, JUNE 10, 2024
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6 M 2024-06-10 CC 2

4. ADJOURNMENT
Mayor Infanti adjourned the meeting at 6:29 p.m.
6:30 PM REGULAR MEETING

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

ROLL CALL

PLEDGE OF ALLEGIANCE
Steve Martin led in the Pledge of Allegiance.

1. PROCLAMATIONS, COMMENDATIONS AND CEREMONIAL ITEMS - None a. June 12th as Women’s Veterans Proclamation
Mayor Infanti presented the proclamation
Allison Wales, Santa Barbara County Commission for Women, accepted the Proclamation and thanked the City for the recognition and its continued support.

2. PRESENTATIONS - None

3. PUBLIC COMMUNICATIONS – NON-AGENDA AND CONSENT ITEMS Mayor Infanti invited public comments.

Dan Martin
Steve Martin
Dennis Beebe
Karen Kyper
There were no other public communications on Non-Agenda and Consent Items.

4. CITY MANAGER REPORT AND ADVANCE CALENDAR
City Manager Murphy reported the County has changed its solid waste vendor and stressed that it does not affect people living within the Solvang City limits; provided updates on the modification of tennis courts for pickleball play, the Pride Festival, the City’s audit services provider and a program hosted by Planning, Marketing and the Events Coordinator are working together to provide a series of quarterly “Business Talks” for the business community; addressed a recent power outage and a public works emergency repair and discussed upcoming agenda items.

5. GC SECTION 53232.3(d) (aka AB 1234) and GC SECTION 84308 (aka SB 1439) REPORT OUT, 7 M 2024-06-10 CC 3

COUNCIL COMMENTS, REQUESTS
Councilmember Elizabeth Orona reported attending the Measure U Committee meeting.

Mayor pro tem Brown commented favorably on the Business Talks program and suggested topics to include.

Councilmember Clarke observed several homeless individuals and a camp on McMurray Road and asked about the Boise Supreme Court decision.

City Attorney O’Sullivan reported the Supreme Court has not issued its decision yet.

Mayor Infanti reported attending an enrobing ceremony for the Superior Court of California and discussed attending a candidate forum.

6. CONSENT ITEMS
a. Approve Order of Agenda as Presented
b. Approve City Council Minutes: May 28, 2024
c. Approve May 2024 Accounts Payable
d. By Second Reading Adopt by Title Ordinance No. 24-0375 Amending Chapter 2 (Sewer Code) and Chapter 3 (Water Code) of Title 9 (Water and Sewer) of the Solvang Municipal Code to Require Utility Accounts to be in the Property Owner’s Name, Incorporate State Requirements for Disconnection of Delinquent Residential Accounts, Provide Additional Enforcement Options and Make other Conforming Edits; and Making a Determination of Exemption under the California Environmental Quality Act
e. Approve Amendment 2 to the Agreement with Cannon Corporation for Utilities Department Staff in the amount not to exceed $42,000, for a total contract amount not to exceed $174,000, and to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City f. This Item was pulled by Mayor pro tem Brown for separate discussion. g. This Item was pulled by Mayor pro tem Brown for separate discussion. h. Receive & file VisitSYV Annual Report 2023
i. Receive and file SBCAG Notice of Preparation for an Environmental Impact Report j. This Item was pulled by Mayor pro tem Brown for separate discussion.

Mayor pro tem Brown pulled Items No. 6.f, 6.g and 6.j.

Motion by Councilmember Clarke, to approve Consent Items as amended, with the exclusion of Items No. 6.f, 6.g and 6.j, seconded by Councilmember Elizabeth Orona and carried, 5-0.

ITEMS EXCLUDED FROM THE CONSENT CALENDAR
f. Approve Amendment 4 to the Agreement with Moore and Associates Inc for Transit Management and Marketing Services for the additional amount not to exceed, $878,000, for a total contract amount not to exceed $912,758. and to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City
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Concerns were raised regarding extension versus competitive bid. Mayor pro tem Brown expressed g. Approve Amendment 2 to the Agreement with SP Maintenance Services Inc for street sweeping services for the additional amount not to exceed, $42,500, for a total amount not to exceed $283,700, and to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City
Concerns were raised regarding rubber-stamping.

Public Works Director Olds noted the RFP process could take four to five months and there exists an issue of staff bandwidth.

City Manager Murphy reported there have been competing priorities and talked about a potential new position to provide administrative support to Planning and Public Works. j. Approve Amendment 3 to the on-call services Agreement with Cannon Corporation for AMI Meter Change-out engineering services in the amount not to exceed $76,880, for a total amount not to exceed $197,380 for the existing term to June 30, 2025, and authorize the Mayor to execute on behalf of the City.

Concerns were raised regarding conflicts of interest and reviewing the process of contract renewal.

Motion by Mayor pro tem Brown, to approve Items No. 6.f, 6.g and 6.j, seconded by Councilmember Clarke and carried, 5-0.

7. PUBLIC HEARINGS - None

8. DISCUSSION ITEMS
a. Discussion and possible action to approve and adopt joint powers agreement for Santa Ynez Valley Basin Eastern Management Area Groundwater Sustainability Agency City Attorney O’Sullivan presented details of the joint powers agreement (JPA) for the Santa Ynez Valley Basin Eastern Management Area Groundwater Sustainability Agency.

Discussion followed regarding a commitment for reimbursement by June 2026, needing the money for a temporary window of time, the process for approval, by the board of the Ag seat representative, members of the Santa Ynez Water Group and the requirement for a unanimous vote.

Mayor Infanti invited public comments.

There were no public comments on this item.

Motion by Mayor pro tem Brown, to approve and adopt the joint powers agreement for the Santa Ynez Valley Basin Eastern Management Area Groundwater Sustainability Agency, seconded by Councilmember Claudia Orona and carried, 5-0.
b. Discussion and possible action regarding Adopting General Municipal November 5, 2024 Election Resolutions
i. Adopt Resolution 24-1256 calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024 for the election of certain officers and consideration of a ballot measure, all as required by the provisions of the laws of the State of California relating to Charter Cities
ii. Adopt Resolution 24-1257 requesting the Board of Supervisors of the County Santa 9 M 2024-06-10 CC 5
Barbara to consolidate a General Municipal Election to be held on Tuesday, November 5, 2024, with the Statewide General Election to be held on that date pursuant to § 10403 of the Elections Code
iii. Adopt Resolution 24-1258 requesting the Board of Supervisors of the County of Santa Barbara to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 5, 2024 iv. Adopt Resolution 24-1259 resolution adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 5, 2024
v. Adopt Resolution 24-1260 providing for a procedure for determining by lot a tie among candidates at the November 5, 2024 General Municipal Election in accordance with Elections Code Section 15651
City Attorney O’Sullivan reported Council may approve all of the resolutions in one motion.

Mayor Infanti invited public comments.

There were no public comments on this item.

Motion by Councilmember Clarke, to Adopt Resolution 24-1256 calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024 for the election of certain officers and consideration of a ballot measure, all as required by the provisions of the laws of the State of California relating to Charter Cities; Adopt Resolution 24-1257 requesting the Board of Supervisors of the County Santa Barbara to consolidate a General Municipal Election to be held on Tuesday, November 5, 2024, with the Statewide General Election to be held on that date pursuant to § 10403 of the Elections Code; Adopt Resolution 24-1258 requesting the Board of Supervisors of the County of Santa Barbara to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 5, 2024; Adopt Resolution 24-1259 resolution adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 5, 2024 and Adopt Resolution 24-1260 providing for a procedure for determining by lot a tie among candidates at the November 5, 2024 General Municipal Election in accordance with Elections Code Section 15651, seconded by Councilmember Elizabeth Orona and carried, 5-0.
c. Discussion and possible action to Receive TOT Tax Measure Poll Results for the November 5, 2024 General Municipal Election; and Potentially Approving and Submitting an Ordinance regarding the TOT Tax Measure for Voter Consideration at the November 5, 2024 election
i. By 4/5 Vote Adopt Resolution No. 24-1261 approving submission of an ordinance continuing and modifying an existing transient occupancy (hotel) tax to the voters at the general municipal election to be held on November 5, 2024, and directing the city attorney to prepare an impartial analysis thereof
ii. Adopt Resolution No. 24-1262 setting priorities for filing written arguments regarding a City ballot measure
iii. Adopt Resolution 24-1263 providing for the filing of rebuttal arguments for a city measure submitted at the November 5, 2024, general municipal election City Attorney O’Sullivan presented details of the report.

Discussion followed regarding voting when a Councilmember is absent related to the requirement for a 10 M 2024-06-10 CC 6
4/5 vote, TOT rates for Buellton and unincorporated areas, the need for voters to approve a general tax increase, the effective date of the ordinance, the last time Solvang increased TOT and rates for other cities in the State.

Mayor Infanti invited public comments.

There were no public comments on this item.

Discussions were had regarding opposition and letting the voters decide.

Motion by Councilmember Elizabeth Orona, to adopt Resolution No. 24-1261 approving submission of an ordinance continuing and modifying an existing transient occupancy (hotel) tax to the voters at the general municipal election to be held on November 5, 2024, and directing the city attorney to prepare an impartial analysis thereof, seconded by Mayor Infanti and carried, 4-1, by roll call vote, with Councilmember Clarke, opposed.

Motion by Mayor Infanti, to adopt Resolution No. 24-1262 setting priorities for filing written arguments regarding a City ballot measure and adopt Resolution 24-1263 providing for the filing of rebuttal arguments for a city measure submitted at the November 5, 2024, general municipal election, seconded by Councilmember Elizabeth Orona and carried, 5-0. d. Discussion and possible action to
i. Approve Measure U Committee Recommendations for Measure U expenditures, and ii. Authorize creation of a Strategic Plan for the Measure U committee Administrative Services Director Berry presented details of the staff report.

Discussion followed regarding creating a strategic plan on how to use the funds in the future, and diligence in making sure the way the money is spent was in alignment with intent and spirit of what was represented in the election.

City Manager Murphy reported there was concern that almost a year’s worth of Measure U funds were being spent on the Sheriff contract and a desirable to be more equitable in the distribution of funds.

Mayor Infanti invited public comments.

Alice Orr
Jamie Baker
There were no other public comments on this item.

Motion by Councilmember Claudia Orona, to approve Measure U Committee recommendations for Measure U expenditures, and, authorize creation of a Strategic Plan for the Measure U committee, seconded by Councilmember Elizabeth Orona and carried, 5-0. e. Discussion and possible action to approve the Preliminary Budget Administrative Services Director Berry presented details of the Preliminary Budget; discussed a starting deficit and reported the City is at a surplus of $683,486; corrected a mistake in the document; addressed General Fund total revenues and expenses, staffing, implementation of a new budgeting software, reduction of sales tax revenue, property tax increases, human services grant funding and cautioned against spending all of the surplus as Capital Improvements are not being funded.

Discussion followed regarding Capital Improvement Projects completed and budgeted, the need for the 11 M 2024-06-10 CC 7
Planning Commission to approve the Capital Budget, working with grant writers to better leverage existing funding, expected FEMA reimbursements, the probability of getting money from the State for current projects, restricted reserves, historical reserves, increases in all of the fund balances in the proposed 24/25 budget, the water fund, the reserve fund balance, restricted and un-restricted fund balances, timing of Capital Improvement Projects and the importance of TOT. Also, the Senior Center project and costs to the City, the need to be careful with the numbers that are shared.

Mayor Infanti invited public comments.

Linda Marzullo, Bethania Food Distribution
David Wy, Bethania Food Distribution
Kathleen Campbell, Solvang Senior Center
There were no other public comments on this item.

Mayor pro tem Brown recused himself from revisiting the Human Services Grant, noting he has a conflict as his wife works for Atterdag at Home, and left the Chamber.

Administrative Services Director Berry discussed grant funding application totals requested and funding awarded for 22/23 and 23/24.

Motion by Councilmember Elizabeth Orona, to reopen the Human Services Grant Funding discussion, seconded by Councilmember Claudia Orona and failed, 2-2, by roll call vote, with Councilmember Clarke and Mayor Infanti, opposed and Mayor pro tem Brown, absent.

Mayor pro tem Brown returned to the Chamber and took his place on the dais.

City Attorney O’Sullivan clarified that the vote was to reopen the Human Services Grand Funding and what is left for Council to discuss is the preliminary budget adoption.

City Manager Murphy reported this budget does not include two positions that were budgeted for six months; requested that Council put those two positions back in the budget and stated the total impact would be approximately $150,000.

Discussion followed regarding the budget for a new Utility Manager, avoiding delays as they will add to costs, the Wastewater Treatment project, the possibility of allocating 10% of the City’s surplus towards Human Services Grants and funding specific to the Chamber.

Motion by Mayor pro tem Brown to direct staff to modify the budget to fund the Parks Representative and Management Analyst positions for a full year and approve the rest of the Preliminary Budget, seconded by Mayor Infanti and carried 3-2 , by roll call vote, with Councilmembers Claudia Orona and Elizabeth Orona, opposed.

9. COUNCIL CLOSING COMMENTS
Mayor pro tem Brown reported a resident asked that the City explore installing rumble strips in different locations along Fredensborg Canyon Road.

10. ADJOURNMENT – 9:01 p.m.

The meeting was adjourned at 9:01 p.m.

Respectfully submitted:

Annamarie Porter, CMC, City Clerk
12 ,WHPF
13 CITY COUNCIL STAFF
REPORT AGENDA ITEM 6.G
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 7 to the Agreement with GSI Water Solutions Inc to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City
PREPARED BY: Randy Murphy, City Manager
DISCUSSION:

GSI Water Solutions (GSI) has provided consulting services to the City since 2016, much of it related to the River Wells project. While the demand created by that project has diminished, it is not over yet.

Additionally, GSI provides expert advice on other water-related issues. City Council approved an increase to the contract at its February 12 meeting but did not extend the contract date. Consequently, staff requests approval for Amendment 7 in order to extend the date for another year, by which time we intend to solicit proposals from other consultants. Note that the prior amendment extended the not-toexceed amount to $330,700, of which some $18,300 remains available. Conversation with GSI suggests that this amount should be adequate for any remaining work.

ALTERNATIVES:

Do not extend the contract. This is not recommended, as there is some amount of River Wells work to be completed and GSI has provided excellent support thus far an it would be more costly to try get another consultant up to speed to complete any needed work.

FISCAL IMPACT:

None. Council approved a contract amendment at its February 12 meeting, which will be carried over into the new fiscal year.

ATTACHMENTS:

A. Amendment 7
14 AMENDMENT NO. 7

PROFESSIONAL SERVICES AGREEMENT

GSI WATER SOLUTIONS
THIS SEVENTH AMENDMENT is made and entered into this 1st day of July 2024, between the CITY OF SOLVANG, a municipal corporation, and GSI Water Solutions Inc. In consideration of the mutual covenants and conditions set forth in the original Agreement dated, June 21, 2016, Amendments No. 1 dated January 9, 2017, Amendment No. 2 dated December 21, 2020, Amendment No. 3 dated November 22, 2021, Amendment No. 4 dated May 9, 2022, and Amendment No. 5 dated November 27, 2023, Amendment No. 6 dated February 12, 2024, the parties agree to extend the term to June 30, 2025.

Campaign Contribution Disclosure: Pursuant to Government Code Section 84308, any party to a City proceeding (which includes, but is not limited to, all contracts with the City, other than competitively bid, labor, or personal employment contracts) must disclose on the record any campaign contributions made to a member of the City Council or other elected or appointed officer of the City, any candidate for elected office of the City, or any candidate for elective office of any other agency who is also an elected or appointed officer of the City in excess of $250 in the past 12 months. This disclosure requirement includes contributions by the party’s agent, such as a consultant, and aggregated contributions from persons or entities related to the party. Consultant is required to fill out and provide the attached Exhibit. Applicant/Interested Party Campaign Contribution Disclosure Form’ with submission of this Agreement and to update this form after each contribution and no later than the beginning of any associated proceeding
All remaining portions of the original Agreement and applicable portions of prior Amendment(s) shall remain in full force and effect.
"CITY"
CITY OF SOLVANG "CONSULTANT"
GSI WATER SOLUTIONS INC.

Mark Infanti, City Manager Timothy Thompson, Principal

APPROVED AS TO FROM
Chelsea O’Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
15 CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.e
Meeting Date: June 24, 2024
SUBJECT: Adopt Resolution No. 24-1264 Approving the FY 2024-25 List of Projects to be funded by the SB 1 Road Repair and Accountability Act and Repealing Resolution No. 24-1242
PREPARED BY: Rodger Olds, Director of Public Works/City Engineer DISCUSSION: On March 11, 2024 the City Council, at a regular meeting and after a public hearing whereby members of the public were provided an opportunity to comment, the City Council adopted Resolution No. 24-1242. The purpose of this resolution was to approve the list of project proposed for funding under SB 1 Road Repair and Accountability Act, specifically under the Road Maintenance & Rehabilitation Account (RMRA), for Fiscal Year 2024-25 as required under Streets and Highways Code Section 2034(a)(1). However, staff recently discovered that Resolution No. 24-1242 contained certain clerical errors, including references to the wrong fiscal year and wrong amount of projected RMRA funding. Therefore Resolution No. 24-1242, as adopted does not meet the requirements of the Streets and Highways Code.

Staff recommends the Council adopt Resolution No. 24-1264, which corrects the identified errors and repeals Resolution 23-1242. Adoption of Resolution No. 24-1264 will ensure the City has properly fulfilled the requirements to be eligible for RMRA funding for Fiscal Year 2024-25.

ALTERNATIVES:

The City Council could opt to not adopt Resolution No. 24-1264, but this action is not recommended as it would result in a loss of FY 2024-25 RMRA funding.

FISCAL IMPACT:

The City is projected to receive $148,948 from the RMRA Program.

ATTACHMENTS:

A. Resolution 24-1264 & Exhibit A Project List
16 Attachment A
RESOLUTION NO. 24-1264

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG, CALIFORNIA APPROVING THE FY 2024-25 LIST OF PROJECTS TO BE FUNDED BY THE SB 1 ROAD REPAIR AND ACCOUNTABILITY ACT AND REPEALING RESOLUTION NO. 24-1242 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, pursuant to Streets and Highways Code Section 2034, the City must adopt by resolution at a regular public meeting a list of all projects proposed to receive Fiscal Year 2024-25 funding from the Road Maintenance & Rehabilitation Account (RMRA), created by SB 1 which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $148,948 in RMRA funding in Fiscal Year 2024- 25 from SB 1; and
WHEREAS, the City has undergone a full public process to ensure public input into our community’s transportation priorities and the Project List; and
WHEREAS, on March 11, 2024 at a regular meeting and after a public hearing whereby members of the public were provided an opportunity to comment, the City adopted Resolution 24-1242 to fulfill the requirements of Streets and Highways Code Section 2034, but such resolution contained certain clerical errors necessitating correction by this resolution.

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The attached list of proposed projects (Exhibit A) for Fiscal Year 2024-25 will be funded with Road Maintenance & Rehabilitation Account revenues and is hereby approved; and SECTION 3. Resolution No. 24-1242 is hereby repealed and shall be of no further force or effect.

SECTION 4. This resolution shall be effective upon adoption SECTION 5. 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 24th day of June, 2024. __________________________________
Mark Infanti, Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ __________________________________ Chelsea O’Sullivan, City Attorney Annamarie Porter, City Clerk 17 Attachment A

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. 24-1264 was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 24th day of June 2024, 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
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AGENDA ITEM 6.f
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 5 to the agreement with ZWorld LLC for annual Geographic Information Systems (GIS) Services for the additional amount not to exceed amount of $37,500 for a total contract amount not to exceed $370,500, extend the term to June 30, 2025 and authorize the Mayor to execute on behalf of the City
PREPARED BY: Rodger A. Olds, Public Works Director/City Engineer DISCUSSION:

The City of Solvang entered into an agreement with ZWorld on August 21st, 2014, for the establishment and maintenance of the City’s GIS System. Since then, the agreement has been amended four times to not only extend the contract, but also to amend the level of service provided.

The proposed contract amendment will hold the previous two-years cost schedule and level of service.

The cost schedule is made up of two parts. An annual lump sum of $25,000 is paid to ZWorld to house, support and update the City’s GIS database, and maintain constant access to the GIS system by City Staff. The remaining amount of $12,500 billed on a monthly basis to provide ongoing GIS services to the City, which includes maintenance of the GIS data and applications as staff identifies needed corrections, updating the GIS Data Dictionary, custom mapping requests, data analysis, technical support, point of contact for vendors, staff training, and emergency support.

Over the full term of the contract, this service has evolved. Initially the service was provided for the Public Works Department which at the time consisted of the mapping of the City’s roadway and utility network. Since then, the scope has been expanded to provide services and support requests for Planning and Building, Parks, Administration, and Emergency Services.

Updated aerial photography is due to be flown and will be uploaded into the City system and an updated web-based GIS program. This is in collaboration with other area governments and the City has agreed to their proportionate share of those costs which is estimated to be $3,500. This cost is not part of this contract; however, receiving this new photo information and updating the City’s GIS system is part of the contract and is included in the cost.

City staff has recently taken the first steps to take over some of the services in-house. This will reduce or potentially even eliminate the need for this external service in future years.

ALTERNATIVES:

Should City Council not authorize staff to execute the contract extension with ZWorld GIS, LLC the City would not have immediate access to the GIS system and would need to seek out an alternative provider for the City GIS platform and maintenance.

FISCAL IMPACT:

The cost to the City for the annual subscription and ongoing GIS services will be $37,500 for fiscal year 2024/25. GIS work by ZWorld GIS is funded by the 2024/25 budget.

ATTACHMENTS:

A –Contract Amendment 5 and Campaign Disclosure
B –Original Contract and Prior Amendments
20 Attachment A
AMENDMENT NO. 5
to the Agreement with

ZWORLD GIS LLC
THIS FIFTH AMENDMENT is made and entered into this 1ST day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City) and ZWORLD GIS LLC, a California Limited Liability Corporation (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, August 21, 2014, the First Amendment dated July 1, 2015, the Second Amendment dated July 1, 2019, the Third Amendment dated July 1, 2022, and the Forth Amendment dated July 1, 2023 the parties agree to continued GIS web application subscription, and annual system maintenance services for one additional fiscal year through 2024-2025 in accordance with the Fee Schedule shown below. The contract termination date is herby extended to June 30, 2025 for a total contract amount not to exceed $370,500.

FEE SCHEDULE
Fiscal Year Annual Subscription GIS Maint. And Services FY 2024-2025 $12,500 $25,000
Campaign Contribution Disclosure: Pursuant to Government Code Section 84308, any party to a City proceeding (which includes, but is not limited to, all contracts with the City, other than competitively bid, labor, or personal employment contracts) must disclose on the record any campaign contributions made to a member of the City Council or other elected or appointed officer of the City, any candidate for elected office of the City, or any candidate for elective office of any other agency who is also an elected or appointed officer of the City in excess of $250 in the past 12 months. This disclosure requirement includes contributions by the party’s agent, such as a consultant, and aggregated contributions from persons or entities related to the party. Consultant is required to fill out and provide the attached Exhibit. Applicant/Interested Party Campaign Contribution Disclosure Form’ with submission of this Agreement and to update this form after each contribution and no later than the beginning of any associated proceeding
All remaining portions of the original Agreement and applicable portions of prior Amendments shall remain in full force and effect.

CITY OF SOLVANG ZWORLD GIS LLC
Mark Infanti, Mayor Zacharias Hunt, Managing Member
APPROVED AS TO FORM: ATTEST:

Chelsea E. O’Sullivan, City Attorney Annamarie Porter, City Clerk 21 Contributor Name
Date of Contribution Recipient Officer/
Candidate
Contribution Amount Refunded: Yes or No; Date of Refund Please list all contributions in excess of $250 (either as a single payment or in aggregate) made within the past 12 months to officers of the agency involved in the above-mentioned proceeding by any parties (applicants) or their agents or representatives, including corporations, limited liability companies (LLCs), or other business entities and principals thereof, that are affiliated with the above-referenced proceeding. You may attach attach additional pages as necessary to list contributions made to involved agency officers and provide additional information about the contributor's relationship with the recipient.

This form must be updated after each contribution, and no less than 45 days before any agency consideration regarding the above-referenced application. Completion of this form does not waive or in any way impact a party's obligation to disclose such contributions over $250 on the record of the proceeding pursuant to Government Code section 84308(e).

Reference #:
(File or Contract #)
Applicant/Interested Party Campaign Contribution Disclosure Form z Land use, entitlements, licenses, permits, franchises, contracts (excluding labor and competitively bid contracts) Applicant/Interested Party Information
Contribution Disclosure (Government Code section 84308) Sign and Date
I declare under penalty of perjury that the information which has been included in this Disclosure Form is true and correct.

Applicant Phone
Representative/
Agent
Email
Business
Address Website
Address Line 2 Fax
City
State Zip Code
Name and subject matter of applicant's proceeding
Signed Date
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22 Attachment B
23 24
25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
43 44
45 46
47 48
49 CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.g
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 6 to the Agreement with Mintier Harnish LP to complete the General Plan Update process and implement the 2023-2031 Housing Element to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City
PREPARED BY: Rafael Castillo, AICP, Planning and Building Manager DISCUSSION:

The General Plan is a vision for how the City of Solvang will grow, reflecting community priorities and values while shaping the future - a long-term framework for future growth and development. The General Plan also contains the goals and policies upon which the City Council and Planning Commission will base their land use decisions. The original contract with Mintier Harnish was approved on November 16, 2020 in the amount of $598,602.00. These amendments have covered the following:
x Additional scope to cover GPAC
x Required Spanish translating
x Housing Element update
x Additional policy document edits due to GPAC input
x Additional project management costs due to lack of city staff Since then, there have been five amendments to the contract totaling $285,097.50. The total contracted amount is $883,699.50. The City had been awarded $182,000 in grant funding by the State to help offset the General Plan Update, therefore the total amount expended/encumbered by the General Fund has been $701,699.50. City staff has worked with the consultant to conclude the General Plan update.

The Housing Element was approved by the City Council in December 2023 and certified by the State of California in February 2024. The Planning Commission recommended approval of the 2045 General Plan and the City Council is scheduled to have a public hearing on July 9, 2024 to adopt the comprehensive update, along with certification of the Final Environmental Impact Report.

Approximately $32,000 will remain in the contract at the conclusion of the General Plan work effort. City staff recommends that these funds be put towards implementation of the Housing Element including required Code updates led by Minter Harnish. The implementation of the Housing Element is a key metric the State uses to determine what progress the city has made to help facilitate housing production and is taken into account when Regional Housing Needs Assessment (RHNA) is assigned.

This also aligns with two City Council goals: identifying existing opportunities for affordable housing in the TRC and updating codes and ordinances. City staff is recommending extending the contract until June 30, 2025 with an amount not to exceed contract addendum 5, totaling $883,699.50.

ALTERNATIVES:

The Council may direct staff to exercise the cost savings and not expend the entire contract. City staff would perform Housing Element implementation in-house versus the use of a consultant. If the Council elects to go in this direction, staff recommends extending the contract to December 31, 2024 to ensure the consultant invoices are paid.

FISCAL IMPACT:

The fiscal impact would be the encumbrance of up to $32,000 from the General fund for the General Plan Update Contract.

ATTACHMENTS:

A- Mintier Harnish Contract Amendment 6
50 AMENDMENT NO. 6

TO THE PROFESSIONAL SERVICES AGREEMENT WITH MINTIER HARNISH, LP THIS SIXTH AMENDMENT is made and entered into this 1st day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City), and MINTIER HARNISH, LP, a California Limited Partnership, hereinafter referred to as “Consultant” In consideration of the mutual covenants and conditions set forth in the original Agreement dated November 16, 2020; Amendment 1 to the Agreement dated May 24, 2021; Amendment 2 to the Agreement dated July 12, 2021, Amendment 3 dated July 27, 2022, Amendment 4 dated November 14, 2022; and Amendment 5 dated May 8, 2023, the parties agree extend the term of Amendment 5 to June 30, 2025.

All remaining portions of the original Agreement and prior amendments shall remain in full force and effect.

CITY OF SOLVANG URBAN PLANNING CONCEPTS INC
__________________________ ______________________________ Mark Infanti, Mayor Jim Harnish, M-H LLC, General Partner APPROVED AS TO FORM:
____________________________
Chelsea O’ Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
51 52

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.h
Meeting Date: June 24, 2024
SUBJECT: Approve the City of Solvang Visitor Center Management Agreement with Solvang Hygge Huset LLC. In the amount not to exceed $305,940 for the term July 1, 2024 – June 30, 2026, and authorize the Mayor to execute on behalf of the City
PREPARED BY: Candice Libera, Marketing and Events Coordinator DISCUSSION:

Visitor Center management services encompass a range of essential functions aimed at providing seamless and engaging experiences for our visitors. These services include customer assistance, information dissemination, guided tours, and assisting in gathering visitor data and information. The management team at the Visitors Center plays a crucial role in ensuring visitor satisfaction and promoting tourism in the City. The Visitor Center creates a positive first impression for guests through strategic marketing initiatives and event support and coordination which helps attract more tourists and showcases the unique offerings of our destination.

Solvang Hygge Huset has provided the management and marketing of the Visitors Center services to the City since 2022. They have been integral to the success of the Visitors Center and consistently deliver a high level of customer service.

ALTERNATIVES:

Should the City Council not approve the Solvang Hygge Huest Inc. contract, City Staff would have to manage the Visitor Center services in house. Current staff does not have the capacity to manage this.

FISCAL IMPACT:

The fiscal impact is $305,940 over the two-year term and is accounted for in the 2024 – 2026 budget cycle.

ATTACHMENTS:

A. Solvang Hygge Huset Contract
53 Solvang Hygge Huset LLC – Visitor Center Management

CITY OF SOLVANG

PROFESSIONAL SERVICES AGREEMENT
PARTIES AND DATE. This Agreement is made and entered into this VW day of -XO\ 2024 (“Effective Date”) by and between the CITY OF SOLVANG, a Municipal Corporation and Charter City organized under the Constitution and laws of the State of California with its principal place of business at 1644 Oak Street, Solvang, CA 93463 (“City”) and SOLVANG HYGGE HUSET LLC, a California Limited Liability Company with its principal place of business at 288 1st Street, Solvang, CA 93463 (“Consultant”).

City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. The parties hereto, in consideration of the mutual covenants contained herein, hereby agree to the following terms and conditions:

1.0 GENERAL PROVISIONS

1.01 Term: This agreement will become effective on the date of execution set forth below, and will continue in effect until terminated as provided herein.

1.02 Services : Consultant shall perform the scope of work (tasks) described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the project schedule which is also set forth in Exhibit A.

Consultant shall determine the method, details and means of performing the abovereferenced services.

Consultant may, at their own expense, employ such assistants and subconsultants, as Consultant deems necessary to perform the services required of Consultant by this agreement.

However, Consultant may not assign this agreement to any other person or entity in the performance of required project-related services, and the City may not control, direct or supervise Consultant’s assistants or employees in the performance of those services.

1.03 Standard of Performance: Consultant’s services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Consultant’s profession currently practicing under similar conditions. Whenever the scope of work requires or permits approval by the City, it is understood to be approval solely for the purposes of conforming to the requirements of the scope of work and not acceptance of any professional or other responsibility for the work. Such approval does not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of Consultant or its subcontractors. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this contract and all applicable federal, state and local laws. If Consultant is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Consultant shall maintain that license, certification, registration or other similar requirement throughout the term of this Contract.

1.04 Compensation: In consideration for the services to be performed by Consultant, City agrees to pay Consultant monetary consideration for professional services in accordance with the fee schedule set forth in Exhibit A. The parties agree that total compensation for fees and costs for the services detailed in Exhibit A shall not exceed the sum of $152,970. per year for a total contract amount not to exceed $305,940., unless and until this Agreement is amended as provided herein.
54 Solvang Hygge Huset LLC – Visitor Center Management

1.05 Billing/Payment Terms. All charges for Consultant’s services and authorized related reimbursable expenses shall be billed monthly, and all undisputed charges will be paid by City within 30 (thirty) days of receipt. The bills shall list all tasks under this Agreement, the task budget, project total budget, percentage completed for each task for that month, associated percentage billing against each task, and total billing for that month. In the event the Agreement is based on time & materials billing up to a not-to-exceed amount, the bill shall itemize by date all services and expenses provided during the invoice period (under this Agreement) including a brief description of the nature of work performed, the person or vendor performing them, the applicable billing rate, and the time expended. All Consultant service invoices must be approved by the City Manager prior to payment.

2.0 OBLIGATIONS OF CONTRACTOR

2.01 Contract Management and Service Performance: Consultant Principal shall serve as the project manager and will personally prepare, or direct and supervise the preparation of, all work product called for by this agreement. Consultant represents that it has the qualifications, experience and facilities to properly perform all services hereunder in a thorough, competent, timely, and professional manner and shall, at all times during the term of this Agreement, have in full force and affect all licenses required of it by law. Consultant agrees to devote the hours and the human resources necessary to timely perform the services set forth in this agreement in an efficient, professional, and effective manner.

2.02 Avoidance of Conflict of Interest.
(a) Consultant may represent, perform services for, and be employed by additional individuals or entities, in Consultant’s sole discretion, as long as the performance of these extra- contractual services does not interfere with or present a conflict with City’s business or interfere with the timely performance and completion of Consultant’s services under this Agreement.
(b) Consultant shall comply with all conflict of interest laws and regulations including, without limitation, the City’s Conflict of Interest Code (on file in the City Clerk’s Office). All officers, employees and/or agents of Consultant who will be working on behalf of the City pursuant to this Agreement may be required to file Statements of Economic Interest.

Therefore, it is incumbent upon the Consultant to notify the City of any staff changes relating to this Agreement.
(c) In accomplishing the scope of services of this Agreement, all officers, employees and/or agents of the Consultant unless as indicated in Subsection (d), will be performing a very limited and closely supervised function, and therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of Consultant, except as indicated in Subsection (d). (Initials).
(d) In accomplishing the scope of services of this Agreement, Consultant will be performing a specialized or general service for the City, and there is substantial likelihood that the Consultant’s work product will be presented, either written or orally for the purpose of influencing a governmental decision. As a result, the following persons shall be subject to the City’s Conflict of Interest Code.
_None

2.03 Tools and Instrumentalities: Consultant shall provide all tools and instrumentalities to perform the services under this agreement.

2.04 Workers’ Compensation and Other Employee Benefits: City and Consultant intend and agree that Consultant is an independent contractor of City and agree that Consultant and 55 Solvang Hygge Huset LLC – Visitor Center Management

2.05 Consultant’s employees and agents have no right to Workers’ Compensation and other City- sponsored employee benefits. Consultant agrees to provide Workers’ Compensation and other employee benefits, where required by law, for Consultant’s employees and agents.

Consultant agrees to hold harmless and indemnify City for any and all claims arising out of any claim for injury, disability, or death of Consultant and any of Consultant’s employees or agents.

Notwithstanding the foregoing or anything to the contrary and for avoidance of doubt, this limitation of liability shall not apply to Consultant or its employees or agents claims for injury, disability, death, or damages arising from the City’s gross negligence or intentional or willful misconduct.

2.06 Indemnification
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

Notwithstanding the foregoing and for the avoidance of doubt, nothing herein shall be interpreted as obligating Consultant to indemnify against claims arising out of the City’s sole negligence or willful misconduct, or in the case of contributory negligence by the City, to indemnify against that portion of a judgement, obligation or damages that is attributed in a court of competent jurisdiction to the City’s negligence or willful misconduct, but Consultant shall remain obligated to indemnify the City for any portion of such judgement, obligation or damages that is not attributed to the City’s negligence or willful misconduct. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph (a). To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs (a) or (b). To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City 56 Solvang Hygge Huset LLC – Visitor Center Management
Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City.

Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) Payment by City is not a condition precedent to enforcement of the indemnities in paragraph (a), (b), or (c). In the event of any dispute between Consultant and City, as to whether liability arises from the active negligence, sole negligence or willful misconduct of the City or its officers, employees, or agents, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the City as having been actively negligent, solely negligent or as having engaged in willful misconduct. Except as otherwise required by Civil Code Section 2782.8, Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. The provisions of this Section 2.05 shall survive completion of Consultant’s services or the termination of this Agreement.

2.07 Insurance: Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and part of this agreement.

2.08 Campaign Contribution Disclosure: Pursuant to Government Code Section 84308, any party to a City proceeding (which includes, but is not limited to, all contracts with the City, other than competitively bid, labor, or personal employment contracts) must disclose on the record any campaign contributions made to a member of the City Council or other elected or appointed officer of the City, any candidate for elected office of the City, or any candidate for elective office of any other agency who is also an elected or appointed officer of the City in excess of $250 in the past 12 months. This disclosure requirement includes contributions by the party’s agent, such as a consultant, and aggregated contributions from persons or entities related to the party. Consultant is required to fill out and provide the attached Exhibit C ‘Applicant/Interested Party Campaign Contribution Disclosure Form’ with submission of this Agreement and to update this form after each contribution and no later than the beginning of any associated proceeding.

3.0 OBLIGATIONS OF CITY

3.01 Cooperation: City agrees to comply with all reasonable requests of Consultant necessary to the performance of Consultant’s duties under this agreement. City employees, agents and officers of the City agree to disclose all information relevant to this project to Consultant. Consultant shall be entitled to reasonably rely upon the accuracy and completeness of information furnished by City, provided that Consultant shall give City prompt written notice of any known defects in such information.

4.0 TERMINATION OF AGREEMENT

4.01 Termination Notice: Notwithstanding any other provision of this agreement, any party 57 Solvang Hygge Huset LLC – Visitor Center Management
hereto may terminate this agreement, at any time, without cause, by giving at least 30 (thirty) days’ prior written notice to the other parties to this agreement.

4.02 Termination on Occurrence of Stated Events: This agreement shall terminate automatically on the occurrence of any of the following events:
a. Sale of the business of any party;
b. The end of the 30 (thirty) days as set forth in section 4.01; c. End of the contract to which Consultant’s services were necessary; or d. Assignment of this agreement by Consultant without the consent of City. e. Death of any party.

4.03 Termination by any Party for Default: Should any party default in the performance of this agreement or materially breach any of its provisions, the non-breaching party, at its option, may terminate this agreement, immediately, by giving written notice of termination to the breaching party.

4.04 Termination: This agreement shall terminate on June 30, 2026, unless earlier extended as set forth in this Section. The City, with the agreement of Consultant, is authorized to extend the term of this agreement beyond the termination date, as needed, under the same terms and conditions as set forth in this agreement. Any such extension shall be in writing and be an amendment to this agreement.

5.0 SPECIAL PROVISIONS

5.01 Additional Tasks as May Be Assigned by the City Manager: Prior to initiating any Consultant work on matters relating to the purposes of this Agreement, but outside the Scope of Services for this Agreement, it shall be the responsibility of Consultant to obtain written approval of the City Manager, prior to initiation of such tasks.

5.02 Time Schedule: Consultant is to begin work upon receipt and execution of City contract. Consultant agrees to engage its best efforts to adhere strictly to the schedule set forth in Exhibit A and incorporated herein.

5.03 Work Outside Contract Scope: No payment for changed or additional work shall be made unless the changed or additional work has first been approved in writing by the City Manager and the parties have agreed upon the appropriate adjustment, if any, to the payment schedule and maximum payment amount for the changed or additional work. The Contract Manger may order changes or additions to the scope of work. Whether a change or addition to the scope of work is proposed by the Consultant or ordered by the City Manager, the parties shall in good faith negotiate an appropriate adjustment, if any, to the payment schedule and maximum payment for the changed or additional work. An approved change or addition, along with the payment adjustment, if any, will be effective upon an amendment to this contract executed by both parties. The amendment shall not render ineffective or invalidate unaffected portions of this contract.

5.04 Confidentiality:
(a) Confidential Nature of Information. Consultant shall treat all information obtained from the City in the performance of this contract as confidential and proprietary to the City.

Consultant shall treat all records and work product prepared or maintained by Consultant in the performance of this contract as confidential.
(b) Limitation on use and disclosure. Consultant agrees that it will not use any information obtained as a consequence of the performance of work for any purpose other than 58 Solvang Hygge Huset LLC – Visitor Center Management
fulfillment of Consultant’s scope of work. Consultant will not disclose any information prepared for the City, or obtained from the City or obtained as a consequence of the performance of work to any person other than the City, or its own employees, agents or subcontractors who have a need for the information for the performance of work under this contract unless such disclosure is specifically authorized in writing by the City. (c) Security plan. If requested by the City Manager, Consultant shall prepare a security plan to assure that information obtained from the City or as a consequence of the performance of work is not used for any unauthorized purpose or disclosed to unauthorized persons.

Consultant shall advise the City of any request for disclosure of information or of any actual or potential disclosure of information.
(d) Survival. Consultant’s obligations under this paragraph shall survive the termination of this contract.

6.0 MISCELLANEOUS

6.01 Notices: Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this agreement or by law to be served on or given to any party to this agreement shall be in writing and delivered or, in lieu of such personal service, when deposited in the United States mail, first class postage prepaid, to the following address for each respective party:

PARTY ADDRESS
TO: CITY OF SOLVANG City of Solvang
1644 Oak Street
Solvang, CA 93463
Attention: City Clerk
Copy to: Chelsea O’Sullivan City Attorney
Richards, Watson & Gershon 847
Monterey Street, Suite 206 San Luis
Obispo, CA 93401
TO CONSULTANT: Solvang Hygge Huset LLC
Susan Lee, Managing Member
288 1st Street
Solvang, CA 93463

6.02 Governing Law: This agreement and all matters relating to this agreement shall be governed by the laws of the State of California in force at the time, should any need for interpretation of this agreement or any decision or holding concerning this agreement arise.

6.03 Binding Effect: This agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto, but nothing in this Section shall be construed as consent by City to any assignment of this agreement or any interest in the agreement.

6.04 Remedies: The remedies set forth in this agreement shall not be exclusive, but shall be cumulative with, and in addition to, all remedies now or hereafter allowed by law or equity.

6.05 Due Authority: The parties hereby represent that the individuals executing this agreement are expressly authorized to do so on and in behalf of the parties. 59 Solvang Hygge Huset LLC – Visitor Center Management

6.06 Ownership of Work Product: Upon delivery, the work product, including without limitation, all original reports, writings, recordings, drawings, files, and detailed calculations developed under this contract are the property of the City. Consultant agrees that all copyrights, which arise from creation of the work pursuant to this contract, shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. City acknowledges that its use of the work product is limited to the purposes contemplated by the scope of work and that the Consultant makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work.

6.07. Integration and Modification:
(a) This contract represents the entire understanding and agreement of the City and Consultant as to those matters contained herein. This agreement correctly sets forth the obligations of the parties hereto to each other as of the date of this agreement. All agreements or representations respecting the subject matter of this agreement not expressly set forth or referred to in this agreement are null and void. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This contract may not be modified, amended, or altered except in writing signed by the City and Consultant.
(b) In the event of any conflict between the terms of this agreement and the terms of an exhibit, the terms of this agreement shall control, even if the exhibit purports to modify this agreement. In the event an exhibit incorporates by reference any additional physical documents, websites, web links or other electronic location not under the control of the City, the parties agree that such additional documents shall have no impact on this agreement and shall be deemed to be void unless actually attached to the exhibit that purports to incorporate such additional document. Notwithstanding the foregoing sentence, the provisions of Section 2.05 of this agreement shall not be altered, amended, limited or otherwise affected in any manner by any language included in an exhibit to this agreement, even if such exhibit purports to affect the provisions of Section 2.05.

Furthermore, any attempt to limit liability to the City that is expressed in an exhibit shall have no force or effect unless City has expressly agreed to such limitation by providing the initials of its authorized representative here: .

6.08. Advice of Counsel: The parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this contract, and that the decision of whether or not to seek the advice of counsel with respect to this contract is a decision which is the sole responsibility of each of the parties hereto. This contract shall not be construed in favor or against either party by reason of the extent to which each party participated in the drafting of the contract.

6.09. Independent Review: Each party hereto declares and represents that in entering this contract it has relied and is relying solely upon its own judgment, belief and knowledge of the nature, extent, effect and consequence relating thereto. Each party further declares and represents that this contract is being made without reliance upon any statement or representation not contained herein of any other party, or any representative, agent, or attorney of any other party.

6.10. Attorney Fees: In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this agreement, or the breach hereof, the prevailing party shall be entitled, in addition to other such relief as may be granted, to a reasonable sum as and for attorney fees.
60 Solvang Hygge Huset LLC – Visitor Center Management

6.11 No waiver: The waiver of any breach by any party of any provision of this agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of this agreement.

6.12. Assignment: This agreement is specifically not assignable by Consultant to any person or entity. Any assignment or attempt to assign by Consultant whether it be voluntary or involuntary, by operation of law or otherwise, is void and is a material breach of this agreement, giving rise to a right to terminate as set forth in Section 4.03.

6.13. Time for Performance: Except as otherwise expressly provided for in this agreement, should the performance of any act required by this agreement to be performed by either party be prevented or delayed by reason by any act of God, strike, lockout, labor trouble, inability to secure materials, epidemics, pandemics, or any other cause, except financial inability, which is the fault of the party required to perform the act, the time for performance of the act will be extended for a period of time equivalent to the period of delay and performance of the act during the period of delay will be excused: provided, however, that nothing contained in this Section shall exclude the prompt payment by either party as required by this agreement of the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act.

6.14 Severability: Should any provision of this agreement be held by a court of competent jurisdiction or by a legislative or rulemaking act to be either invalid, void or unenforceable, the remaining provisions of this agreement shall remain in full force and effect, unimpaired by the holding, legislation or rule.

6.15. Construction: The parties agree that each has had an opportunity to have their counsel review this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this agreement or any amendments or exhibits thereto. The captions of the sections are for convenience and reference only, and are not intended to be construed to define or limit the provision to which they relate.

6.16. Amendments: Amendments to this agreement shall be in writing and shall be made only with the mutual written consent of all the parties to this agreement.

6.17. Signatures: The individuals executing this contract represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

IN WITNESS WHEREOF, the parties have executed this contract on the following date.

CITY OF SOLVANG CONTRACTOR

SOLVANG HYGEE HUSET LLC
By: By:

Mark Infanti, Mayor Susan Lee, Managing Member
APPROVED AS TO FORM ATTEST:

Richards, Watson & Gershon
By: By:

Chelsea O’Sullivan, City Attorney Annamarie T Porter, City Clerk 61 Solvang Hygge Huset LLC – Visitor Center Management

EXHIBIT A

SCOPE OF WORK,

FEE SCHEDULE
&

PROJECT SCHEDULE
62 Solvang Hygge Huset 2024 Visitor Center Cost Sheet
VC Onsite Staff Service Details #Units Unit Cost Gross- Annual Manager Rate
Scheduling-management, support vacation, breaks/backfill 1 $15,000.00 $15,000.00 $0.00
Ambassador Rate Regular Staffing 48 $1,120.00 $53,760.00 Manager/ Ambassador Surge Rate Additional Staff- 4 weeks per year during peak seasons 4 $2,240.00 $8.960.00 Extended Hours Julefest
Extended hours - (1) 4-hour shift, 7
days week, 6 weeks $3,750.00
Admin
Payroll Taxes 1 $17,000.00
Costs
All management, event support, marketing support, and accounting costs $50,000.00 Office supplies and holiday decor $1,000.00 Workers' Compensation/ General Liability 3,500.00 Total $152,970.00
63 Solvang Hygge Huset LLC – Visitor Center Management
Proposal for Professional Services
Visitor Center Management
Susan Lee
805.350.3246
[email protected]
64 Solvang Hygge Huset LLC – Visitor Center Management
Proposal
The Request for Proposals is for operation of the Visitor Center. Working collaboratively with the City of Solvang, City's Marketing Consulting Firm, Elverhoj Museum, local organizations, and businesses in Solvang and surrounding area, the Visitor Center Operator will be responsible for providing:

1. Management of the Visitor Center day-to-day operations.

2. Staffing a dedicated phone line with trained qualified staff.

3. Manage and respond to inquiries of [email protected].

4. Manage all Visitor Center business operations as an independent entity from the City.

5. Represent the City of Solvang's unique characteristics and Danish motif.

Ensure staff are knowledgeable of Solvang's history and local businesses. (City staff will provide up to date business information).

6. Work collaboratively with City staff promoting messaging developed by the Marketing Team. The marketing "angle" will be determined by the Marketing Team and approved by the City to promote City of Solvang tourism and may change depending on season and other factors.

7. Collect Visitor Center in person and phone inquiries, data, including collection of demographics and type of questions. Report monthly to Marketing Team.

8. Meet quarterly with City staff.

Scope of Work
Solvang Hygge Huset Proposes the following:
a) Staffing a dedicated phone line with trained qualified staff • Visitor Center will provide staff to answer tourist questions about City of Solvang business operations.
• Phone line to be provided by the City of Solvang.
65 Solvang Hygge Huset LLC – Visitor Center Management
• Visitor Center will provide adequate training to staff who will be well informed about the history of Solvang, culture, local attractions, and businesses.
• Visitor Center will be responsible for appropriately staffing the on-site location on Copenhagen Drive.
• Visitor Center Hours:
• 7 days a week 9:30am - 5:30pm
• Thanksgiving Day 9:00am - 1:00pm
• Julefest Hours 9:30am - 7:30pm
• Christmas Day CLOSED
b) Manage all Visitor Center business operations as an independent entity from the City, including scheduling, vacations, sick leave, payroll, payroll taxes etc. c) Manage all administrative operations of the Visitor Center. d) Facilitate and provide Julefest activities such as: Tree Lighting Ceremony, Julefest Tours, and Nisser Adventure by working collaboratively with City staff.

Introduction and Technical Approach
Solvang Hygge Huset LLC is a Solvang local woman owned business that was recently and specifically created to facilitate the day-to-day operations of the Solvang Visitor Center. The Solvang Hygge Huset team consists of Solvang locals with powerful ties to the Santa Ynez Valley and specifically the city of Solvang. Our strong suits include deep family history, great knowledge of: the area, businesses, attractions, and Solvang stories.

We also have access to two great accordion playing family members, and a Solvang Ambassador who is fluent in the Danish language. We have the experience, skill, and personality to take on the challenge and enjoyment of operating the Solvang Visitor Center.

As the current Ambassadors of the Solvang Visitor Center, we also have the knowledge and experience necessary to continue with all visitor center operations without pause or need of training to keep the welcome mat in place.

We are often the first face the guests of Solvang encounter and therefore strive to give them the attention and answers necessary to begin their Solvang adventure. 66 Solvang Hygge Huset LLC – Visitor Center Management
We keep an accurate count of the daily visitors and inquiries that are received.

We always make sure the visitor center is a clean and tidy place for our guests so that they can feel comfortable upon entering.

All personal items in the visitor center will be marked as such to avoid confusion of ownership. Solvang Hygge Huset LLC will comply with final contract and insurance requirements that have been outlined by the City of Solvang.

The Solvang Hygge Huset team will use the Santa Ynez Valley Visitor Guide, maps, the Solvangusa.com website, and personal knowledge to serve the guests and locals who enter the visitor center. Our focus will be on great customer service and guest satisfaction.
67 Solvang Hygge Huset LLC – Visitor Center Management
Staff
Susan Lee Owner/Manager
Susan has knowledge and years of experience working with The City of Solvang's marketing and tourism. She has been managing the Visitors Center for the past year as an employee with Cogs and Marvel. In previous years she worked for the Solvang Conference and Visitors Bureau, working in the Visitor Center as well as taking on many different tasks and responsibilities for the Solvang Conference and Visitors Bureau office. This included marketing responsibilities, assisting the digital marketing director, and assisting with Solvang City sponsored events.

Dean Klitgaard
Visitor Center Ambassador
Currently, Dean is known as Mr. Solvang in the Solvang Visitors Center. Dean has lived in Solvang for many years. He has been an asset to the city and has worked in the Solvang Visitor Center for 13 years. He is fluent in the Danish language and shares a unique talent with visitor center guests as an accordion player. He has extensive knowledge of Solvang and the Visitor Center operations.

Jeanie Wulff
Visitor Center Ambassador
Jeanie has worked in The Solvang Visitor Center for over 5 years. As a longtime resident of Solvang, she has the knowledge and experience necessary to help and assist guests and the locals of Solvang.

Kirsten Klitgaard
Visitor Center Ambassador
Kirsten has worked in The Solvang Visitor Center for 4 years. Kirsten entertains guests as she shares her new ability to play the accordion. Also, as an employee of The Elverhoj Museum, she is an expert in Solvang history, culture, heritage, and visitor hospitality. 68 Solvang Hygge Huset LLC – Visitor Center Management
Additional Party Obligations
A. City of Solvang's Obligations.

From July 1, 2024 through June 30, 2026 City shall:

1. Provide at no cost to Solvang Hygge Huset LLC a non-exclusive revocable license for use of the Solvang Visitors Center, including all furniture, fixtures and equipment, and other City-owned exhibits at the Solvang Visitors Center, for the use set forth in this Agreement.

2. City may remove or utilize such items from the Visitors Center at any time in the future, as City deems advisable upon giving reasonable written notice to the Solvang Hygge Huset LLC.

3. City shall provide Solvang Hygge Huset LLC access to all public records related to the Visitors Center.

4. City shall maintain the exterior of the Center including, but not limited to, sidewalk, flower beds, exterior painting, trash cans, and structural integrity.

5. City shall provide and pay for utility service (heat, electricity, water and sewer), telephone, and internet services to the Solvang Visitors Center.

6. City shall ensure that excessive loitering is prohibited inside and outside the Solvang Visitors Center.

B. Solvang Hygge Huset LLC Obligations.

1. From July 1, 2024, through June 30, 2026, Solvang Hygge Huset LLC shall:
a. Operate the Visitors Center in accordance with the Proposal for Professional Services - Visitor Center Management
included herein and these Additional Party Obligations (included in Exhibit A to this Agreement).
b. Cooperate with City in the transfer of the Solvang
Visitors Center to any successor.
c. Submit monthly written reports to City detailing actions towards realization of the goals. Said reports shall
include but are not limited to the:

1. Number of inquiries responded to;

2. Visitor traffic counts at Visitors Center.
d. Provide and pay for all interior janitorial services and window washing of the Visitors Center and keep the
interior of the Visitors Center in a clean and neat state 69 Solvang Hygge Huset LLC – Visitor Center Management
which is comfortable for visitors.
e. mark or otherwise identify all of organization owned furniture or equipment placed in the Visitors Center to avoid confusion as to ownership. Furniture and equipment not so marked or identified shall be presumed to be City property.

2. In accordance with Section 6.06 of this Agreement, all work product and digital assets generated by Solvang Hygge Huset LLC pursuant to this Agreement are the property of the City. At the conclusion, expiration, or termination of this Agreement, Solvang Hygge Huset LLC shall transfer all work product and digital assets generated by Solvang Hygge Huset LLC pursuant to this Agreement to City, including any necessary passwords, licenses, or other information reasonably requested by City.

3. Obligations at Termination or Expiration. At termination or expiration of this Agreement or any extended term, Solvang Hygge Huset LLC shall:
a. Provide City all documents and data files of Solvang Hygge Huset LLC related to its performance under this agreement, as further set forth in Section (B)(3). b. Surrender and deliver the Visitors Center to the City in as good condition as when received by Solvang Hygge Huset LLC, or thereafter improved, excepting only: 1) ordinary wear and tear; 2) deterioration or functional obsolescence of improvements due to age and 3) any defects objected to in a writing signed by Solvang Hygge Huset LLC and delivered to the City of Solvang prior to the Solvang Hygge Huset LLC execution of this Agreement.

4. Equipment and Property.
a. Solvang Hygge Huset LLC shall provide all equipment necessary for performance of its obligations under this Agreement.
b. Not later than the expiration or termination date of this Agreement, or of any extended term, Solvang Hygge Huset LLC shall remove all of its property from the Visitors Center.

5. Non-Discrimination. Solvang Hygge Huset LLC shall not discriminate against any person or persons or exclude any persons from participation in the Visitor Centers' operations, programs, or activities conducted on the City's premises because of race, color, age, sex, disability, national origin, religion or other basis protected by applicable federal or California law.

6. Use of Visitors Center. Solvang Hygge Huset LLC may use the Visitors Center solely for purposes related to the performance of this Agreement.

7. Compliance with Laws and Care of Premises.
70 Solvang Hygge Huset LLC – Visitor Center Management
a. Solvang Hygge Huset LLC shall not permit any unlawful occupation, business or trade to be conducted at the Visitors Center, or any use to be made thereof contrary to any law, ordinance or regulation.
b. Solvang Hygge Huset LLC shall neither use nor permit any assignee to use the Visitors Center or any purpose which poses a substantial risk of damage by means of fire or otherwise.

8. Inspection. City will retain a key to the Visitors Center. City may inspect the Visitors Center at its convenience without prior notice to Solvang Hygge Huest LLC.

9. Assignment or Subletting. Solvang Hygge Huset LLC shall not assign or sublet or grant a security interest in this Agreement without the prior written consent of the City.

10. Defibrillator: The defibrillator onsite is City owned property and Solvang Hygge Huset LLC has no obligation under this Agreement to maintain, use, or train staff in the use of the defibrillator.
71 EXHIBIT B

INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City.

Consultant shall provide the following types and amounts of insurance:

Commercial General Liability Insurance using Insurance Services Office “Commercial General Liability” policy form CG 00 01, or a City approved equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence and in the aggregate.

Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person.

Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease.

Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.

Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the state of California and with an A.M. Bests rating of A- or better and a minimum financial size VII.

General conditions pertaining to provision of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant:

1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992, or a City approved equivalent. Consultant also agrees to require all contractors, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement 72 or any other agreement relating to the City or its operations limits the application of such insurance coverage.

4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

5. Consultant’s general liability policy shall not contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

6. All coverage types and limits required are subject to approval, reasonable modification and reasonable additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option.

8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage by the carrier.

9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City.

10. Consultant agrees to require that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review.

11. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or selfinsured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. Consultant shall be responsible for paying any deductibles or self-insured retentions on its policies.

12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City.

13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 73 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.

15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect.

16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.

17. The provisions of any workers’ compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents.

18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.

20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.

21. Consultant agrees to be responsible for ensuring that no contract used between itself and its subconsultants reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements.

There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.
74 Solvang Hygge Huset LLC – Visitor Center Management

EXHIBIT C

CAMPAIGN

DISCLOSURE FORM
75 Solvang Hygge Huset LLC – Visitor Center Management
76 CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.i
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 4 to the Agreement with Urban Concepts for Planning Division Consultant Services for the additional amount of $150,000, for a total contract amount not to exceed $587,000 and to extend the term to December 31, 2024, and authorize the Mayor to execute on behalf of the City PREPARED BY: Rafael Castillo, AICP, Planning and Building Manager DISCUSSION:

Urban Planning Concepts (UPC) has provided contract planning services since February 2020. Since March of 2020, UPC provided the city with a full range of planning services including review of plans, counter work, responding to emails, attending public hearings, and serving as the project manager for major department work efforts including the project manager for the General Plan update. Generally, they have provided planning services approximately 12 o 16 hours a week. The city has entered into 3 contract amendments with UPC increasing their budget for services rendered to the City. The last addendum entered added an additional $150,000 to the contract, for a total contract not to exceed $411,542.12. This contract is set to expire June 30, 2024.

Through June 2024, UPC has billed $90,127.50 of their additional $150,000 contract extension. UPC’s monthly billing amounts were slashed substantially since October 2023, when the new Planning Manager was hired and delegated their sole role as project manager to complete the 2045 General Plan update. City staff is recommending that the contract be extended to December 31, 2024, with no additional increase in budget. This will allow UPC to wrap up project management of the 2045 General Plan update. City staff anticipates close out of this project in September 2024, with UPC assisting in public hearings in July, and final document deliverables and project close out. Remaining invoices to be paid no later than December 24, 2024.

Planning and Building staff wishes to extend their gratitude to UPC during this transition period and assist in maintaining a functioning department during COVID-19 pandemic, as well as their assistance in the General Plan update process and providing guidance and project management for the previous planning manager.

ALTERNATIVES:

The Council may direct staff to expire the contract on June 30, 2024. Urban Planning Concepts will no longer be involved in wrapping up the 2045 General Plan update, creating an additional burden to city staff to manage the remainder of the contract.

FISCAL IMPACT:

City staff anticipates a general fund expenditure of $10,500 to $12,500 for fiscal year 2024-2025 to complete the General Plan update, with a cost savings of approximately 30% or $45,000 not billed in the total contract amount due to city staff taking over previous consultant duties.

ATTACHMENTS:

A – Urban Planning Concepts Amendment 4
77 AMENDMENT NO. 4
to the Agreement with

URBAN PLANNING CONCEPTS
THIS FOURTH AMENDMENT is made and entered into this 1st day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City), and URBAN PLANNING CONCEPTS INC, a California Corporation (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, July 1, 2021, Amendment No. 1, dated July 1, 2022, Amendment No. 2, dated December 12, 2022, and Amendment No. 3 dated July 1, 2023 for planning services. The parties agree to the additional amount not to exceed $150,000 for a total contract amount not to exceed $587,000 and to extend the term to December 31, 2024.

All remaining portions of the original Agreement and applicable portions of prior Amendment(s) shall remain in full force and effect.

CITY OF SOLVANG URBAN PLANNING CONCEPTS INC
__________________________ ______________________________ Mark Infanti, Mayor Laurie Tamura, CEO
APPROVED AS TO FORM:
____________________________
Chelsea O’ Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
78 CITY OF SOLVANG
Applicant/Interested Party Campaign Contribution Disclosure Form 1644 Oak Street │ Solvang, CA 93463 │ www.cityofsolvang.com │ (805) 688-5575

APPLICANT/INTERESTED PARTY INFORMATION
Applicant Name:

Phone: Email (required):

Representative/Agent:

Phone: Email:

Mailing Address:

City: State: Zip:

Website:

Name and subject matter of applicant’s proceeding:

CONTRIBUTION DISCLOSURE (GOVERNMENT CODE SECTION 84308) Please list all contributions in excess of $250 (either as a single payment or in aggregate) made within the past 12 months to officers of the agency involved in the above-mentioned proceeding by any parties (applicants) or their agents or representatives, including corporations, limited liability companies (LLCs), or other business entities and principals thereof, that are affiliated with the above-referenced proceeding. You may attach additional pages as necessary to list contributions made to involved agency officers and provide additional information about the contributor's relationship with the recipient.

Contributor Name:

Date of Contribution Recipient Office/Candidate Contribution Amount ($):

Refund: Yes or No;
Date of Refund.
܆ By checking this box I certify that I have noW given any contributions consistent with Government Code Section 84308

ACKNOWLEDGEMENT
This form must be updated after each contribution, and no less than 45 days before any agency consideration regarding the abovereferenced application. Completion of this form does not waive or in any way impact a party's obligation to disclose such contributions over $250 on the record of the proceeding pursuant to Government Code section 84308(e).

I declare under penalty of perjury that the information which has been included in this Disclosure Form is true and correct:

Signature: _______________________________________________ Date: ______________________________ Print Name: ______________________________________________

OFFICIAL USE ONLY
File/Project No: Date Received:

Laurice Tamura
805-431-6713 Laurie Tamura <[email protected]> 2624 Airpark Drive
Santa Maria CA 93455
urbanplanningconcepts.com
Contract Planner with City of Solvang
6/10/2024
Laurie Tamura
79 CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.j
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 3 to the Agreement with Willdan Engineering for building plan review, building inspection, building official services, and permit counter technician services, in the amount not to exceed $200,000, for a total contract total not to exceed amount of $786,595, and to extend the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City
PREPARED BY: Rafael Castillo, AICP, Planning and Building Manager DISCUSSION:

The City released a Request for Proposals (RFP) in 2019 after the prior building services provider terminated the contract with the City. Willdan Engineering, also referred to as Willdan, was selected through this process. Willdan receives 80% of the plan check fees, and staff is paid hourly rates.

Willdan provides critical building services for the City. Since their initial contract, they have provided building plan review, inspections, and counter service. Their team provides building services Tuesday and Thursdays due to a low amount of building permits review, issues, and inspected based on the size of our City. Wildan has provided services totaling $154,154.71, through June 1 of fiscal year 2023- 2024, which is under the allotted budget for their services. The Wildan Team has been integral in assisting in providing valuable information to the Planning Manager and city staff. Wildan has been willing to work with staff on new initiatives in the building division to meet a primary goal of the City Council: streamline the entitlement and building permits process. Working in collaboration with the Planning Manager Wildan has committed to the following:
x Initiate Electronic Review to eliminate the use of paper, reducing transit time of plans. x Commit to time frames and metrics established by the Planning Manager to reduce review times for all city departments to 30 days for new construction building permits, which only Wildan had adhered to prior to these discussions.
x Implementation of a “one voice, one city” approach, in constructing comments of all City departments, thus allowing applicants the ability to make corrections for all commented items in one round versus multiple rounds, and work in a collaborative effort with planning and public works to “revision” building permit and grading permits. x Assisting the Planning Manager in reconfiguring, and reconstructing the permitting software purchased by the City in 2020, to provide functionality, and tracking of permits in real time. x Assisted the Planning Manager in revisions to processes for record retention initiated with new digital submittals.
x Provided a high level of customer service for counter questions, and inspection services.

With a new administrative assistant position proposed in the 2024-2025 budget, the Planning Division will now be able to intake building permits five days a week versus the current two. City staff will now be able to issue over-the-counter permits (the majority of building permits issued), thus allowing City staff to take additional control of the building permit process. City staff recommends extending the contract with Wildan for building services through June 30, 2025. The contract amount is recommended not to exceed an additional $200,000, which will be recovered through the revised fee schedule. While the hourly rates have increased, and reflected in Attachment A, City staff anticipates further reduction in Wildan’s overall cost with the addition of new staff, as well as implementing a more robust permitting process that is dynamic and straightforward, reducing timeframes for residents, and business owners seeking permits through a clear and concise process. City staff will be crafting a Request for Proposal 80 (RFP) in early 2025 for building services to ensure a competitive contact and potential additional cost savings for next fiscal year.

ALTERNATIVES:

Extension of the contract is necessary to continue with building services. The City does not have sufficient expertise in plan review, and inspection services that is required by the California Building Code. However, the City Council may choose to extend the contract for a shorter period and direct staff to competitively bid the services sooner.

FISCAL IMPACT:

The fiscal impact is $200,000, of which 80% is recovered through the adopted fee schedule.

ATTACHMENTS:

A – Wildan Engineering Amendment 3
B – Original Agreement with Amendments No.1 and No. 2.
81 AMENDMENT NO. 3
to the Agreement with

WILDAN ENGINEERING
THIS THIRD AMENDMENT is made and entered into this 1st day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City), and WILDAN ENGINEERING, a California Corporation (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, July 9, 2021, Amendment No. 1, dated July 1, 2022, Amendment No. 2, dated July 1, 2023, for building plan review, building inspection, building official services, and permit counter tech services. The parties agree to an additional amount not to exceed $200,000 for a new total contract amount not to exceed $786,595, with new hourly billing rates as shown in Exhibit A of Amendment No.3 and to extend the term to June 30, 2025.

CITY OF SOLVANG WILDAN ENGINEERING
__________________________ ____________________________________ Mark Infanti, Mayor Patrick Johnson, Director of Building & Safety APPROVED AS TO FORM:
____________________________
Chelsea O’ Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
82 Exhibit A
Hourly Billing Rates
83 84
85 86
87 88
89 90
91 92
93 94
95 96
97 98
99 100
101
102
103
104
105
106
107
108

CITY OF SOLVANG
Applicant/Interested Party Campaign Contribution Disclosure Form 1644 Oak Street │ Solvang, CA 93463 │ www.cityofsolvang.com │ (805) 688-5575

APPLICANT/INTERESTED PARTY INFORMATION
Applicant Name:

Phone: Email (required):

Representative/Agent:

Phone: Email:

Mailing Address:

City: State: Zip:

Website:

Name and subject matter of applicant’s proceeding:

Contributor Name:

Date of Contribution Recipient Office/Candidate Contribution Amount ($):

Refund: Yes or No;
Date of Refund.
܆ By checking this box I certify that I have noW given any contributions consistent with Government Code Section 84308

I declare under penalty of perjury that the information which has been included in this Disclosure Form is true and correct:

Signature: _______________________________________________ Date: ______________________________ Print Name: ______________________________________________

OFFICIAL USE ONLY
File/Project No: Date Received:
__________________
y pjy
Laurice Tamura
805-431-6713 Laurie Tamura <[email protected]> 2624 Airpark Drive
Santa Maria CA 93455
urbanplanningconcepts.com
Contract Planner with City of Solvang
■
6/10/2024
Laurie Tamura
109

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.k
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 2 to the agreement with Tetra Tech Inc for annual General Engineering Support Services for the additional amount not to exceed amount of $83,200 for a total contract amount not to exceed $249,600, extend the term to June 30, 2025 and authorize the Mayor to execute on behalf of the City
PREPARED BY: Rodger A. Olds, Public Works Director/City Engineer DISCUSSION:

The City of Solvang Public Works Department has a continuing need for engineering services. The organizational structure for the Public Works Department Engineering Division included an Associate Engineer, which is a professional level engineer with the capabilities to provide engineering related services such as Capital Improvement Program (CIP) project management, development review, and oversight of City of Solvang engineering programs. Efforts to hire a full-time associate level engineer were unsuccessful.

In December, the City filled the Associate Engineer position with an Engineering Tech/Inspector position, which resulted in a budgetary savings to the City. While this position provides full-time subprofessional engineering and field inspection, the need for additional professional level engineering assistance remains.

Over the past two years, Tetra Tech, Inc. has provided a staff member to the City that has previously worked for the City of Solvang in the Associate Engineer position. This person meets the professional level engineering service needs of the City and is available to dedicate eight (8) hours per week. The projection of eight (8) hours per week at the current billing rate projects to $83,200 for the coming year.

The assigned staff member is a Senior Engineer I with an hourly billing rate of $200 per hour.

Staff intends to continue to utilize this contracted Associate Engineer for assignments to keep certain CIP projects on track and provide necessary historical insight and oversight to other engineering projects. The cost for this contract Associate Engineer will be billed to and spread across various budgeted capital improvement projects as well as the Public Works Department’s Professional Services budget.

ALTERNATIVES:

City Council could deny Staff’s request for this contract extension. Staff would continue to work to fulfill the engineering needs of the City; however, some professional level items may not be completed.

FISCAL IMPACT:

The cost to the City for engineering services through this contract will be $83,200 for fiscal year 2024/25. The proposed 2024/25 budget includes a professional services amount to accommodate for the contract..

ATTACHMENTS:

A –Contract Amendment 2 and Campaign Disclosure
B –Original Contract and Prior Amendment
110
Attachment A
AMENDMENT NO. 2
to the Agreement with

TETRA TECH INC
THIS FIFTH AMENDMENT is made and entered into this 1ST day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City) and TETRA TECH INC, a Delaware Corporation (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, July 1, 2022 and the First Amendment dated July 1, 2023, the parties agree to increase the contract by an additional not to exceed amount of $83,200, for a total contract not to exceed amount of $249,600, and to a contract time extension. The contract termination date is hereby extended to June 30, 2025.

All remaining portions of the original Agreement shall remain in full force and effect.

CITY OF SOLVANG TETRA TECH, INC.

Mark Infanti, Mayor Jason L. Fussel, Vice President
APPROVED AS TO FORM:

Chelsea E. O’Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
111
Contributor Name
Date of Contribution Recipient Officer/
Candidate
Contribution Amount Refunded: Yes or No; Date of Refund Please list all contributions in excess of $250 (either as a single payment or in aggregate) made within the past 12 months to officers of the agency involved in the above-mentioned proceeding by any parties (applicants) or their agents or representatives, including corporations, limited liability companies (LLCs), or other business entities and principals thereof, that are affiliated with the above-referenced proceeding. You may attach attach additional pages as necessary to list contributions made to involved agency officers and provide additional information about the contributor's relationship with the recipient.

Applicant Phone
Representative/
Agent
Email
Business
Address Website
Address Line 2 Fax
City
State Zip Code
Name and subject matter of applicant's proceeding
Signed Date
perjury that the informati

Tetra Tech.

Jason Fussel
290 Valley Station Dr., Ste. 102
Buellton
California
805-542-8630
[email protected]
www.tetratech.com
N/A
93427
Renewal of Existing Engineering Support Services Contract No Contributions
N/A
N/A
N/A
112
Contributor Name
Date of Contribution Recipient Officer/
Candidate
Contribution Amount Refunded: Yes or No; Date of Refund Please list all contributions in excess of $250 (either as a single payment or in aggregate) made within the past 12 months to officers of the agency involved in the above-mentioned proceeding by any parties (applicants) or their agents or representatives, including corporations, limited liability companies (LLCs), or other business entities and principals thereof, that are affiliated with the above-referenced proceeding. You may attach attach additional pages as necessary to list contributions made to involved agency officers and provide additional information about the contributor's relationship with the recipient.

Applicant Phone
Representative/
Agent
Email
Business
Address Website
Address Line 2 Fax
City
State Zip Code
Name and subject matter of applicant's proceeding
Signed Date 06/11/2024
Tetra Tech.

Bridget Elliott
290 Valley Station Dr., Ste. 102
Buellton
California
805-542-9052
[email protected]
www.tetratech.com
N/A
93427
Renewal of Existing Engineering Support Services Contract No Contributions
N/A
N/A
N/A
113

CITY COUNCIL STAFF REPORT
AGENDA ITEM 7.a
Meeting Date: June 24, 2024
SUBJECT: Public Hearing to consider adopting Resolution No. 24-1265, amending the Appropriation Limit for fiscal year 2024-2025 Pursuant to Article XIII B of the California Constitution.

PREPARED BY: Wendy Berry, Administrative Services Director DISCUSSION: The State Constitution requires government entities to calculate and adopt an appropriation limit each year. California Constitution Article 13B, Section 1 provides that "The total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of the entity of government for the prior year adjusted for the change in the cost of living and the change in population, except as otherwise provided in this article." The limit is based on the actual appropriation during the 1978-79 fiscal year, and is increased each year thereafter, using the growth of population and inflation. Each city must now conduct a review of their Appropriation Limit during their annual financial audit.

Per the California Department of Finance (DOF), Solvang’s population increased by 0.05% this past year. Historically, the percentage change of the per capita personal income is used as the cost-of-living factor, and for fiscal year 2024-2025, the amount is 3.62% as determined by the DOF. The calculation in the table below shows our growth factor to be 1.0367181. This factor, when applied to last year’s appropriation limit, calculates to an increase of $873,115 from $23,778,864 in FY 2023-24 to $24,651,978 for FY 2024-25. Based on the FY 2024-25 anticipated $10.93M General Fund Revenues, we are well below our Appropriations Limit.

The Public Hearing Notice was published on June 13, 2024.

Fiscal
Year
Per
Capita
Personal
Income
(CPI)
Change
Population
Change (%)
Growth Factor
Combination (CPI X
Population Change)
Appropriation Limit
General Fund
2023-24 4.44% -0.44% 1.0398046 $ 22,788,864
2024-25 3.62% 0.05% 1.0367181 $ 24,651,978
ALTERNATIVES:

None
FISCAL IMPACT:

None
ATTACHMENTS:

A. Resolution 24-1265
B. California Department of Finance Price and Population Information 114
R 24- Appropriation Limit
RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG CALIFORNIA AMENDING THE APPRORIATION LIMIT FOR FISCAL YEAR 2024-2025 PURSUANT TO

ARTICLE XIII OF THE CALIFORNIA CONSTITUTION
WHEREAS, Article XIII B of the California Constitution provides that the total annual appropriations subject to limitation of each governmental entity, including this City, shall not exceed the appropriation limit of such entity of government for the prior year adjusted for changes in the cost of living or personal income and population, except as otherwise provided for in said Article XIII and implementing State Statues; and WHEREAS, pursuant to said Article XIII B of said California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to set its appropriation limit for each fiscal year; and
WHEREAS, the Director of Administrative Services of the City of Solvang has interpreted the technical provisions of said Proposition 4 computations and has caused a technical review to be made of the documentation for the City's said appropriation limitation, and has caused changes in the appropriation limit for fiscal year 2024-2025; and WHEREAS, based on such calculations the Director of Administrative Services has determined the said appropriation limit and, pursuant to Section 7910 of said California Government Code, has made available to the public the documentation used in the determination of said appropriation limit.

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

SECTION 1. that said appropriation limit for fiscal year 2024-2025 shall be set in the amount of $24,651,978.

SECTION 2. That this resolution shall be effective July 1, 2024.

SECTION 3. 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 on this 24th day of June, 2024. ______________________________
Mark Infanti, Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ______________________________ Chelsea O’Sullivan, City Attorney Annamarie Porter, City Clerk $WWDFKPHQW$
115
R 24-XXXX Appropriation Limit

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. 24- was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 24th day of June 2024, 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
116

CITY COUNCIL STAFF REPORT
AGENDA ITEM 8.a
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 2 to the agreement with MNS Engineers, Inc for engineering support and environmental permitting, for the South Alisal Emergency repair Project for the additional amount not to exceed amount of $7,110 for a total contract amount not to exceed $194,278, and extending the term to June 30, 2025, and authorize the Mayor to execute on behalf of the City.

PREPARED BY: Rodger A. Olds, Public Works Director/City Engineer DISCUSSION:

The State of California experienced a major storm event on January 9, 2023. As a result of the impact to the storm, the County of Santa Barbara declared a state of emergency on January 9th, and the Federal Government approved Santa Barbara County's inclusion in the Federal Major Disaster Declaration on January 17th.

In Solvang, storm flows in Alisal Creek damaged and washed out the slope that supports South Alisal Road. This partial washout compromised the roadway and justified an immediate response by the City.

On February 13th City Council approved emergency contracts for the construction of the repairs as well as the engineering assistance from MNS. The contract with MNS Engineering included the scope below:

1. Initial project assessment and coordination of permitting.

2. Construction Environmental Monitoring - Biologist

3. Army Corps of Engineers Permit compliance.

4. Design of Mitigation Plan
The initial construction work has been completed. The work was anticipated to take 20 working days.

Due to working conditions and rain delays the work took 44 working days to complete. This additional timeframe for construction and environmental oversight was accommodated within the overall original contract amount; however, this used up the planned contingency worked into the original contract as well as some of the anticipated budget for the Mitigation Plan design and approval process.

As directed by the California Office of Emergency Services (CaIOES), staff reached out to the United States Army Corps of Engineers (USACE) to assist with the environmental permitting to allow access to the creek. The Army Corps coordinated with several federal and state permitting agencies and provided an emergency permit to allow creek access on February 7. The permit required environmental monitoring by an onsite biologist during construction, and the development of a post-construction mitigation “Remediation plan” to reestablish the creek bank to as close to a pre-event condition as possible.

The design of the mitigation plan has been completed. This was submitted to USACE, and much like the initial permit, was reviewed and coordinated with federal and state permitting agencies with several iterations. MNS and City staff negotiated with the permitting agencies to arrive at a reasonable mitigation plan. The design and negotiation process required several submittal iterations with the permitting agencies prior to approval.

The scope of the remediation requirements was unknown at the time of the initial contract, and therefore the required oversight was not included in the scope of the original contract. Per the permit 117
requirements and the remediation plan approved by permitting agencies, specialized plantings and oversight by a certified biologist are required.

On October 23, City Council approve amendment number one to this contract for the not-to-exceed amount of $39,490 to address to additional work necessary to coordinate the multiple submittals and negotiation with the permitting agencies that was beyond the original scope, additional construction administration and oversite necessary to complete the initial construction work as well as the oversight of the implementation of the remediation plan per the permit requirements.

The remediation plan required by the environmental permit included a remediation project to be completed after the initial project. This project included the removal of undesirable vegetation (weeds) from the areas disturbed by the work, planting of 36 trees, spreading of approved native seed mix, harvesting, preparation and planting of willow and mulefat cuttings, and dressing the slope with erosion control netting to assist in the establishment of the seed mix and reduce the potential for erosion on the slope. This work was required to be observed by a biologist and reported to the permitting agency, in this case USACE. A two-year maintenance and establishment period from the time of the original impact was also required as part of the remediation plan and the USACE permit.

This work was put together in a formal bid and advertised on the City’s bid portal Plant Bids. The bid opening was scheduled for August 8, 2023. While five (5) prospective bidders downloaded the plans and specifications, the City received zero (-0-) bids. Per City purchasing guidelines this allowed the City to pursue other methods of procurement. A proposal for the work was received from Hanley General Engineering to complete this work for $54,600.00. While the expense for this work could be included in the reimbursement from FEMA the Public Works Department assessed the scope of work and worked with MNS to achieve the requirements of the remediation plan with a combination of City crews and contractor labor. The overall work was completed in May for the cost of just under $20,000.

The end result was a cost savings to the City and a reduction in the overall FEMA claim for the work.

Most of the work including the oversight and planting approval was included in the original contract by MNS. The additional work included in this proposed contract amendment includes the work by MNS crews to harvest, prepare and plant the willow and mulefat cuttings on site. A letter proposal from MNS attached to this report as Attachment B, for this additional work for the Not-to-exceed amount of $7,110 was received in February. Staff reviewed and approved the proposal, to complete this highly specialized work as part of the remediation project.

Staff recommends the approval of the contract amendment to include the additional work relating to the remediation work and extending the contract term by an additional 12 months. While the remediation work is now complete, the additional 12-month term will allow for the required reporting to USACE, due in the Spring of 2025, and the submittal of the permit close out documents.

ALTERNATIVES:

The City Council may decide not to approve the proposed contract amendment. Since the additional work has already been completed this would require MNS to pursue other means to recover their costs to complete the work. This would also require staff to find other means to have a biologist review and submit a report to USACE as well as close out the permit.

FISCAL IMPACT:

The additional cost to the City included in this contract amendment is $7,110. This cost has been included in the submittal to FEMA for reimbursement.

ATTACHMENTS:

A –Contract Amendment 2 and Campaign Disclosure
B – MNS Proposal for additional work
C –Original Contract and Prior Amendment
118
Attachment A
AMENDMENT NO. 2
to the Agreement with

MNS ENGINEERS INC
THIS SECOND AMENDMENT is made and entered into this 1ST day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City) and MNS ENGINEERS INC, a California Corporation (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, February 13, 2023, and the First Amendment dated October 23, 2023, for Professional Engineering services to provide permitting, environmental, and construction oversite services for the Alisal Road Emergency Repair Project for the additional not-to-exceed amount of $7,110 for a total contract amount not to exceed $194,278. The contract termination date is hereby extended to June 30, 2025.

Consultant is required to fill out and provide the attached Exhibit. Applicant/Interested Party Campaign Contribution Disclosure Form’ with submission of this Agreement and to update this form after each contribution and no later than the beginning of any associated proceeding All remaining portions of the original Agreement and applicable portions of prior Amendments shall remain in full force and effect.

CITY OF SOLVANG MNS ENGINEERS, INC.

Mark Infanti, Mayor Jeff Edwards, Vice President
APPROVED AS TO FORM:

Chelsea E. O’Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
119
Contributor Name
Date of Contribution Recipient Officer/
Candidate
Contribution Amount Refunded: Yes or No; Date of Refund Please list all contributions in excess of $250 (either as a single payment or in aggregate) made within the past 12 months to officers of the agency involved in the above-mentioned proceeding by any parties (applicants) or their agents or representatives, including corporations, limited liability companies (LLCs), or other business entities and principals thereof, that are affiliated with the above-referenced proceeding. You may attach attach additional pages as necessary to list contributions made to involved agency officers and provide additional information about the contributor's relationship with the recipient.

Applicant Phone
Representative/
Agent
Email
Business
Address Website
Address Line 2 Fax
City
State Zip Code
Name and subject matter of applicant's proceeding
Signed Date
der penalty of perjury that the information which has been included in this D Storm Water Permit Services
None
South Alisal Emergency Repair Permitting and Oversite
Jeff Edwards 805-431-6713
MNS Engineers, Inc.
201 N. Calle Cesar Chavez, Suite 300 urbanplanningconcepts.com 805.692.6921
Santa Maria
CA 93103
6/10/2024
120
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CITY COUNCIL STAFF REPORT
AGENDA ITEM 8.b
Meeting Date: June 24, 2024
SUBJECT: Approve Amendment 2 to the agreement with MNS Engineers, Inc for annual implementation, support, and compliance with the City’s Storm Water Management Plan Permit for the additional amount not to exceed amount of $133,000 for a total contract amount not to exceed $351,950, and extending the term to June 30, 2025 and authorize the Mayor to execute on behalf of the City.

PREPARED BY: Rodger A. Olds, Public Works Director/City Engineer DISCUSSION:

The Regional Water Quality Control Board (RWQCB) adopted the Phase II Small Municipal Stormwater Separate Storm Sewer Systems (MS4) Permit on February 5, 2013, with implementation of the Stormwater Management Guidance Document starting Fiscal Year 2013/14. Title 14 of the Solvang Municipal Code was subsequently created in order to comply with the permit and provide the City with the ability to enforce the permit requirements.

MNS Engineers, Inc. has been a critical part of the City of Solvang’s team to meet the requirements of the MS4 permit, coordinating all aspects of the MS4 Permit requirements. A new contract was awarded to MNS Engineers for this work in 2022 and a one-year extension was granted in 2023.

The key requirements of the permit which MNS staff provides through this contract include:
x Education and training
x Public outreach
x Inspection and reporting
x Design review guidance
x Coordination with Partner Agencies including the City of Buellton x Collection and submittal of the Required Annual reporting.

The RWQCB has been developing a new MS4 permit for the past few years; however, that process has been delayed and the current permit and requirements remain in place. Over the coming fiscal year, the RWQCB is likely to initiate the process of a new MS4 permit which will include the review and comment by all public agencies and then a requirement of implementation of new requirements and eventually a new MS4 permit.

When the new MS4 permit goes into effect, the City may be required to implement additional measures to meet the new permit requirements. This could result in the need to negotiate for additional services to this contract. At that time the City will likely choose to advertise a request for Proposals (RFP) to invite other potential service providers and initiate a new contract for these required services. Staff recommends continuing the contract with MNS Engineers for this scope of work due to their knowledge of the City’s specific program, local presence, and shared partnership with the City of Buellton, until such time as a new permit is issued and a new procurement process is executed through the RFP process.

ALTERNATIVES:

City Council could choose to not extend the contract with MNS Engineers, Inc. This would require the Public Works Engineering Staff to perform this work in-house. Current City staffing levels, expertise, and ongoing nature of the permit requirements would make this very difficult, if not impossible, to achieve while maintaining the current level of service. 140
FISCAL IMPACT:

The cost to the City for these services over the next fiscal year is $133,000. The proposed 2024/25 budget includes a professional services amount to accommodate for the contract.

ATTACHMENTS:

A –Contract Amendment 2 and Campaign Disclosure
B –Original Contract and Prior Amendment
141
Attachment A
AMENDMENT NO. 2
to the Agreement with

MNS ENGINEERS INC
THIS SECOND AMENDMENT is made and entered into this 1ST day of July, 2024 between the CITY OF SOLVANG, a municipal corporation and Charter City (City) and MNS ENGINEERS INC, a California Corporation (Contractor). In consideration of the mutual covenants and conditions set forth in the original Agreement dated, July 1, 2022 and the First Amendment dated July 1, 2023, for annual implementation, support, and compliance with the City’s Phase II Small Municipal Stormwater Separate Strom Sewer System (MS4) permit, for the additional amount of $133,000 for a total contract amount not to exceed $351,950. The contract termination date is hereby extended to June 30, 2025.

CITY OF SOLVANG MNS ENGINEERS, INC.

Mark Infanti, Mayor Jeff Edwards, Vice Presedent
APPROVED AS TO FORM:

Chelsea E. O’Sullivan, City Attorney
ATTEST:

Annamarie Porter, City Clerk
142
Contributor Name
Date of Contribution Recipient Officer/
Candidate
Contribution Amount Refunded: Yes or No; Date of Refund Please list all contributions in excess of $250 (either as a single payment or in aggregate) made within the past 12 months to officers of the agency involved in the above-mentioned proceeding by any parties (applicants) or their agents or representatives, including corporations, limited liability companies (LLCs), or other business entities and principals thereof, that are affiliated with the above-referenced proceeding. You may attach attach additional pages as necessary to list contributions made to involved agency officers and provide additional information about the contributor's relationship with the recipient.

CITY COUNCIL STAFF REPORT
Agenda Item: 8.c
Meeting Date: June 10, 2024
SUBJECT: Discussion and possible action to Adopt Resolution No. 24-1266 Adopting a Biennial Budget for Fiscal Years 2024-2026
PREPARED BY: Wendy Berry, Administrative Services Director DISCUSSION:

At its June 10, 2024, meeting, City Council approved the preliminary draft budget with reinstating the Management Analyst and Parks Maintenance positions to a full year and no other revisions. The Ad Hoc Budget Committee met on May 8 and May 18 to discuss the grant funding and the preliminary budget. Staff will continue to work on the final budget book document and present it to Council with the Capital Improvement Plan in August as the final budget needs to be adopted tonight.

Proposed Budget Summary:

The proposed budget for FY24-25 and FY25-26 for all funds is balanced. The FY24-25 budget includes revenue of $25,847,063 and expenses of $24,128,418 with an estimated fund balance increase for all funds of $1,718,645.00. The FY25-26 budget for all funds includes a total revenue of $26,198,633 and expenses of $23,630,050 with an estimated fund balance increase of $2,568,530. All funds include General Fund, Water, Wastewater, Transit, Gov’t Impact Fees, Traffic Safety, Gas Tax, Local Transportation, Measure A, Skytt Mesa, Measure U, Vehicle Equip Pool, OPED Trust and SYV TBID.

Attachment B shows revenue and expenses for all funds.

General Fund Summary:

General Fund revenues come from a wide variety of sources including the City’s Transient Occupancy Tax, sales tax, property tax, and fees for services. The City’s general fund is the primary operating fund used for essential services such as city operations, public safety, facilities, parking lot maintenance, parks, recreation, roads and streets, and for other needed services for city operations. The General Fund is crucial for maintaining essential city services and infrastructure.

To balance the budget for the General Fund this year, Measure U funds were used for public safety, public lighting, senior and recreation programs, street repair, fire safety, traffic flow, and emergency plan update.

The FY 25-26 proposed budget remains out of balance and will likely need Measure U funds to offset the deficit. Measure U is general fund revenue but kept in a separate fund for better tracking. Staff and the Measure U committee will be developing a strategic plan for future spending of Measure U monies to transfer General Fund expenses to Measure U.

The General Fund total revenue is $10,932,272 and total expenses are $10,517,311 with a projected revenue over expense of $414,961. The estimated General Fund year end fund balance will increase by $414,961 at the end of the year providing no changes are made to the budget. It is crucial to increase the year-end fund balance in all funds to fund capital improvement projects.

The General Fund’s main sources of revenue are Transient Occupancy Tax (TOT) and sales tax. Staff estimates TOT revenue will be $4,754,000 for 24/25 compared to the 23/24 budgeted amount of $4,900,000. TOT revenue makes up 43% of the City’s total GF revenue. 161
After talking with the City’s tax consultants, staff reduced the tax revenue by 3% as it is predicted sales tax revenue will decline next year. Consequently, staff estimates Sales Tax Revenue will be $1,960,564 for 24/25 compared to 23/24 which is $2,021,200. Sales tax is 18% of the City’s overall GF revenue.

Property Tax revenue is estimated to be $1,567,871 which is a 6.2% increase from 23/24 at $1,474,254. Property tax is 15% of the City’s GF revenue. TOT, Sales Tax and Property Tax make up 76% of the overall GF Revenue.

General Fund overall revenue increased slightly due to fees for services, grant revenue and interest income. Attachment E is General Fund total revenue, Tax revenue and expenses by type.

General Fund Expenditure Assumptions:

The total proposed general fund expense for 24/25 is $10,517,311.

General Fund Expenses by Department are listed below:

Administration $2,831,293
Council $2,018,575
Planning & Bldg $1,215,155
Parks & Rec $1,222,150
Tourism $873,523
Public Works $2,356,615
Total 10,517,311
Water Fund: The Water Fund Revenue increased slightly compared to 23/24 and expenses will decrease. It is estimated the Water Fund balance will increase by $328,026. The revenue will increase due to increasing the water rates based on the previously approved rate study. The Water Fund expenses decreased due to the Suspension Table A being accounted for in 25/26 and Well Development expenses decreasing from work being done in 23/24. Attachment F compares the Water revenue and expense for fiscal years 22/23, 23/24 and 24/25.

Wastewater Fund: The Wastewater Fund has been in a deficit in the past few years which prompted a rate study. The Wastewater revenue increased based on new rates from the approved rate study.

Attachment G compares the revenue and expense for FY 22,23, 23/24, 24/25. Wastewater revenue is projected to be $2,886,923 and expenses are estimated to be $2,839,778 which will decrease the fund deficit by $47,145. The Wastewater Fund balance will remain in a deficit of ($613,223.57) providing all capital projects get completed for 23/24.

Measure U: Measure U is a 1% use tax to protect and maintain funding for City of Solvang services, such as: pothole and street repair, flammable brush removal, 911 emergency response, neighborhood police patrols, recreation programs and general government use. The Measure U funds are General Fund monies but kept in a different fund. The City began collecting funds in April of 2023. The Measure U Committee recommends using $3,200,000 in compliance with the services listed above. At the end of 24/25 the Measure U fund balance is estimated to be $1,146,262.87. Using the Measure U funds allows General Fund monies to be spent on other services.

Personnel Updates: Personnel costs account for the salaries and benefits of city employees and include full and part-time. The positions that have been filled are two Parks employees, one Maintenance Worker and a Water Operator. The Planning/Public Works Admin Assistant and the Management Analyst full-time positions were approved by Council at the June 10 meeting. The Utility Director position is still vacant. Attachment H is the organization chart for fiscal year 24/25.

ATTACHMENTS:

A. Resolution 24-1266 Approving FY24-26 budget
B. FY24-25 Budget
162
C. FY25-26 Budget
D. All Funds Revenue & Expense
E. GF Revenue & Expense
F. Water Revenue & Expense
G. Wastewater Revenue & Expense
H. FY24-25 Org Chart
163
R 24-1266 budget 24-26
RESOLUTION NO. 24-1266

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SOLVANG CALIFORNIA ADOPTING A BIENNIAL BUDGET FOR FISCAL YEARS 2024-2026
WHEREAS, the City of Solvang is required to appropriate and expend public funds to conduct its business on a day-to-day basis; and
WHEREAS, the City Council and City Staff have expended many hours preparing and reviewing the City’s needs, and
WHEREAS, the City Council finds and determines that the efficiency, economy, and effectiveness of City government operations would be substantially impaired if such appropriations or expenditures could not be incurred or paid on a daily basis, and WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to a budget approved by ordinance or resolution need not be audited by the City Council prior to payment; and
WHEREAS, the City Council acknowledges the continuing efforts of staff to operate within an approved budget and manage savings wherever feasible.

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

SECTION 1. That the City Council of the City of Solvang, California adopts the biennial budget for fiscal years 2024-2026 as set forth on Exhibit A attached hereto and made a part of this Resolution.

SECTION 2. That this Resolution shall be effective July 1, 2024.

SECTION 3. 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.

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. 24-1266 was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 24th day of June 2024, 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
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Solvang City CouncilJune 24, 2024

Solvang City Council
June 24, 2024