BodyCity Council
MeetingRegular Meeting
Date📅 May 14, 2026

UnGovr Transcript

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0:06 – 0:1114 turns

UnidentifiedUnidentified speaker 1Proposed6:42

Thank you all for joining us. We will call this meeting from

Pledge of Allegianceceremonial · click to expand
ElectedDavid SilvaMayorProposed · by role6:44

May 14th to order. If we could have the Pledge of Allegiance, Vice Mayor Mead would you like to lead us in pledge?

UnidentifiedUnidentified speaker 2Proposed6:54

I pledge allegiance to the

UnidentifiedUnidentified speaker 3Proposed6:55

flag of the United States of America and to the republic for which it stands one nation under God indivisible with liberty and justice for all.

And then if we could please have roll call

Roll call, called by City Clerk
Show transcript
Council Member Hornek. Here. Council Member Lewis. Here. Council Member Sanchez. Here. Vice Mayor Mead. Here, and Mayor Silva. Here
ElectedDavid SilvaMayorProposed · by role7:19

And is there any reordering of our agenda tonight? Mr. Mayor we have no reordering this evening Okay well we will start with our presentations this evening Thank you to all who came today Is anyone at a time limit or can we just go down the agenda everyone okay Great, we'll just go with that. Hearing no complaints I'll assume we're all good. So our first item tonight will be our proclamation recognizing Teacher Appreciation Week and we have... Hello there! We've got them all there okay great so whereas the City of Buellton's future strength depends on providing a high quality education to all students and whereas teacher quality matters more to student achievement than any other school related factor and whereas teachers spend countless hours preparing lesson plans and supporting students And whereas our community recognizes and supports its teachers in educating the children of this community.

And whereas, Hashtag Teachers Can is a statewide movement supported by more than 150 partnering businesses and organizations committed to elevating the teaching profession and honoring the critical role teachers play in success of Buellton. Now therefore I, David Silva, Mayor of the City of Buellton on behalf of the Buellton City Council hereby proclaim the week of May 4th to the 8th 2026 as Teacher Appreciation Week in the city of Buellton and urge all citizens to recognize and support the efforts of our teachers. Presented this 14th day of May 2026 and we have a number of teachers in the room so quickly a round of applause first off to all our teachers.

And now after a day of teaching, more public speaking available. Would any of you care to come up and say a few words? Yay! We have our principal.

UnidentifiedUnidentified speaker 2Proposed8:50

Oh good!

ElectedDavid SilvaMayorProposed · by role8:54

The social contract has been signed.

UnidentifiedUnidentified speaker 4Proposed8:57

You should get up there too Billy.

ElectedDavid SilvaMayorProposed · by role8:58

Yes.

UnidentifiedUnidentified speaker 4Proposed9:00

Come on. Teacher. You're a teacher. Get in there.

CommentLisa MelbyProposedself-stated9:05

My name is Lisa Melby, I'm the principal at Oak Valley Elementary. I've been at Oak Valley for 19 years. It is just lovely that Buellton, the city of Buellton has chosen to create a proclamation celebrating Teacher Appreciation Week. We had a great week. We were celebrated by families, by students, our PTSA spoiled us at both sites, Haunted Inn and Oak Valley.

And even when there are only 14 days of school allowed I think it's 14. I was still able to round up some people from Oak Valley, and it just so happened that Billy is here from the high school. The high school starts a little bit earlier this year, but they're out a little bit sooner. On behalf of everyone at Oak Valley and Honoda, we would like to thank you for recognizing us. We've got parents here and grandparents and people who write lovely recommendation letters when we're searching for awards. Parents, thank you so much.

It takes a village to make all of this happen. We recently at Oak Valley were awarded a really exciting honor, it's the inaugural award for the 2026 National Gold Star School by the National Association of Elementary School Principals. Thank you. I've been at Oak Valley a long time and I think it's been a long time coming for Oak Valley to receive some kudos for all of the great things that happen there.

Everybody that is on that site is there for the right reason, and they're there to support kids. So we are just celebrating that and also trying to get through a very chaotic last 14 days of school. And you can tell that the kids are also ready. So with me today, I have Heather Somerton who is a second and third grade teacher. Billy Savola is not mine to claim but I did teach both of his kids. Yes high school teacher Kathy Vangle teaches second grade but has taught A variety of great levels. Who do we have over here? Brooke Goodwin teaches second grade this year and Nicole Rubio runs everything in the front office, and if anybody has questions she's really the one that knows it so did anybody else want to say anything? We didn't prep.

You're here. It's perfect. So we thank you very much, and we're going to sit because other people are receiving proclamations. Is that

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ElectedDavid SilvaMayorProposed · by role11:34

right? No, you're going to come up for a picture now.

UnidentifiedUnidentified speaker 5Proposed11:37

I told you David kind of does his own thing.

ElectedDavid SilvaMayorProposed · by role11:39

If you don't mind, would y'all let me come up for a photo right now? Behind

UnidentifiedUnidentified speaker 5Proposed11:42

you?

ElectedDavid SilvaMayorProposed · by role11:43

Where do we go? We will be framed.

0:11 – 0:1711 turns

UnidentifiedUnidentified speaker 2Proposed11:49

We're going to do like team photos.

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ElectedDavid SilvaMayorProposed · by role12:19

Thank

UnidentifiedUnidentified speaker 2Proposed12:19

you so much.

UnidentifiedUnidentified speaker 6Proposed12:47

All right. I would like to say thank you to everyone who got this item because my, we started kids in school there and I was thinking 86. My stepdaughter started there all my kids went there and now my grandkids are going there and i have a three-year-old there so I want to thank the teachers for all their hard work It's a pleasure having you. Thank you again. Anyone else want to make any comments?

UnidentifiedUnidentified speaker 5Proposed13:17

Oh, I just wanted to say I've really enjoyed being at the cities and schools programs with your fifth graders. I had a really lovely time and being a former educator. I mean it's a terrific place to be. The classrooms are warm and welcoming. The teachers obviously know what they're doing no doubt about it and just congratulations on your recognition. And it's uh it's wonderful thing for Buellton to have such an incredible school here in educating our children so thank you so much Yes, yes we are.

I'll be fantastic.

ElectedDavid SilvaMayorProposed · by role13:49

Anyone else? Well thank you very much for being here tonight and I really appreciate y'all making the trek out with only 9 slash 14 days to go. And not that anyone's counting at this point! Our next item tonight we will have is a proclamation recognizing our National Peace Officers Memorial Day, May 15th, 2026. And so whereas the Congress and the President of United States have adopted Public Law 87-54 designating May 15 as Peace Officers Memorial Day in recognition of law enforcement officers nationwide who have sacrificed their lives or been disabled in the performance of their duties And whereas public law 87-54 also designates the week in which May 15th falls as National Police Week, in recognition of their service provided by thousands of federal state and local law enforcement officers.

And whereas it is important that all citizens know and understand the duties responsibilities hazards and sacrifices of those who dedicate their lives to the law enforcement profession and to keeping our community safe. And whereas police officers throughout the state and nation risked their lives on a daily basis to maintain peace within the community and protect the lives and property of all of our citizens And whereas the members of the Santa Barbara County Sheriff's Department and local CHP officers provide a vital public service, safeguarding the rights and freedoms of the citizens of the city of Buellton. Now therefore I Mayor David Silva on the Buellton City Council do hereby recognize May 15th 2026 as National Police Officers Memorial Day and May 15 2021-2026 as National Police Week in the city of Buellton and encourage the community to join in this observance presented this 14th day of May 2026.

We

UnidentifiedUnidentified speaker 3Proposed15:24

will ask you to come up and

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UnidentifiedUnidentified speaker 2Proposed15:51

Thank you.

ElectedDavid SilvaMayorProposed · by role15:52

Thank you very much. Thank you. And I get the last thing for your officer for everybody here today. That's going to present somewhere. Thanks, guys. Appreciate it. Thank you for having me. Lieutenant

UnidentifiedUnidentified speaker 3Proposed16:05

Henderson said he has someplace on his wall. Thank

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ElectedDavid SilvaMayorProposed · by role16:18

And then our third proclamation for the evening is our proclamation recognizing National Military Appreciation Month. And we have a few guests with us here tonight as well. So whereas in 2004, the United States Congress passed a resolution proclaiming May as National Military Appreciation Month encouraging all citizens to honor current and former members of the US Armed Forces and their families including those who made the ultimate sacrifice And whereas the month of May was selected for this display of patriotism, because during this month we celebrate Victory in Europe VE Day, Military Spouse Day, Loyalty Day, Armed Forces Day, National Day of Prayer and Memorial Day. And whereas the rights of life, liberty and the pursuit of happiness enumerated in our Declaration of Independence secured by the Constitution and the Bill of Rights and enjoyed by every citizen of the United States are secured by the dedication of members of the United States armed forces And whereas Military Appreciation Month honors the current and former members of the United States Armed Forces, including those who have died in the pursuit of freedom.

And whereas the sacrifices made by all members of the United States Armed Forces and their loved ones are to be valued. And whereas on this month and throughout the year, citizens of Buellton express our gratitude and commitment to Buellton service members, veterans, and their families who have dedicated their lives in defense of our freedoms. Now therefore I, Mayor David Silva and the Buellton City Council do hereby recognize May 2026 as National Military Appreciation Month in the city of Buellton. I encourage the community to join in this observance presented this 14th day of May 2026. And I do believe that we have Pam Nika who's going to give us a uh who our special guests are tonight to receive this

0:17 – 0:2420 turns

UnidentifiedUnidentified speaker 7Proposed17:47

So first of all, Mayor Silva and City Council. I just want to thank Buellton for doing this because and being open to when you gave this proclamation in this award to recognize our high school seniors who have made a commitment I'm going to talk a little bit about how we represent our city and our community were recognized and I thought, it's not enough. It's not enough. They're getting ready to take on a really big job that we're so grateful for. So thank you for letting them come up here tonight. I gotta get back to where their names are. So Elizabeth Ramirez, do you wanna go? I'm going to call on Christian Padilla. She is going to be going into the United States Army.

Christian Padilla is going to be going into the United States Army and Yahi Torres will be joining the United I asked them and they said no.

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ElectedDavid SilvaMayorProposed · by role19:15

Well, we are efficient in our proclamations this evening. So thank you very much for your willingness to serve and to sign on for that. And are you all from the St. Louis Valley High School?

CommentScott AikenProposedself-stated19:23

Yes.

ElectedDavid SilvaMayorProposed · by role19:24

Thank you for representing our community so much. And may we ask you to come up and take a photo right now. OK,

UnidentifiedUnidentified speaker 3Proposed19:29

everybody.

ElectedDavid SilvaMayorProposed · by role19:31

Oh, wow. OK. That's awesome. Thank you for coming out here tonight. If we could have you come join us, that'd be great.

UnidentifiedUnidentified speaker 2Proposed19:41

I'll just have you three right in the middle if

UnidentifiedUnidentified speaker 3Proposed19:43

you want to switch this way.

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UnidentifiedUnidentified speaker 2Proposed20:03

Can we look over here? One, two, three.

ElectedDavid SilvaMayorProposed · by role20:06

And then I don't get an angle towards the moms. Yeah, yeah.

UnidentifiedUnidentified speaker 2Proposed20:09

Sorry. That's awesome. Thank you so much for your willingness to participate. Thank you. Thank you.

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UnidentifiedUnidentified speaker 3Proposed20:33

Thank you guys.

ElectedDavid SilvaMayorProposed · by role20:48

I know and what we'll do is just before you all leave, I did want to give a moment if there's any purpose. We have a few proclamations here if any of the council members wanted to share any remarks but we just wanted to make sure we say thank you very much this is a very big commitment that you're taking and um to be willing to serve your country like this means a lot for us so thank you very much for that. I don't know if anyone else wants to add anything.

UnidentifiedUnidentified speaker 8Proposed21:07

Your community is super proud of you and we're you know cheering behind you all the way and can't wait to welcome you back

UnidentifiedUnidentified speaker 9Proposed21:15

This

ElectedDavid SilvaMayorProposed · by role21:15

will be the part where I pause now and just say you are more than welcome to leave now before we get into regular meeting so there's no feel of obligation as well to our officer if you'd like to scond out too. So, we'll just take a quick two-minute recess to make it formally where feel free to leave if you'd like at this point but you don't want to take any photos further but yes thank you all for being here this evening for

UnidentifiedUnidentified speaker 1Proposed21:39

the proclamations. Thank you, Mr. Buellton.

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CommentScott AikenProposedself-stated22:33

Thank you for having me tonight. Thank you for all that you do for our wonderful city. My name is Scott Aiken, I live in Buellton next month will be 24 years. Sent all four of my kids through Buellton schools. I remember when Lisa Melby was a teacher not just principal and she was awesome at that as well. But I'm here to ask the City Council to revise the current ban on short-term rentals The current code section 19.02.150 says in summary that short term lodging and residential zoning districts presents a threat to the public welfare In my opinion, that's quite a stretch but I get it.

There was a nightmare situation about 10 years ago where a short-term rental unit in the neighborhood was used as a party house. Excessive noise late into the night, disorderly conduct, traffic trash, all that stuff. So let me be clear, I do not want that situation to ever happen here again but the current ban on all short-term rentals is ridiculous A nightmare from 10 years ago does not justify a total ban today.

We tried to kill the headache by cutting off the head. When done thoughtfully with common sense guardrails, short-term rentals are just as safe for our community as any other arrangement. I just want to rent out my small detached unit With the current online platforms, I get to select the people who will be good guests. It's that simple. It's completely reasonable.

There is no good reason to ban that and I'd be glad to work with the city as needed to enact a policy that makes sense. Again, there's just no reason to ban all short-term rentals. Let's be smarter and let's do better about that. Thank you for your time. Thank

ElectedDavid SilvaMayorProposed · by role24:30

you for being here tonight.

CommentScott AikenProposedself-stated24:31

Thank you.

0:24 – 0:2910 turns

ElectedDavid SilvaMayorProposed · by role24:34

Any other public comments? Okay. We will now move on to our consent calendar, and we will be reviewing for items 4 through 10. Is anyone looking to pull any items or if not is there a motion to approve?

UnidentifiedCity ClerkProposed · by role24:48

I move to approve.

ElectedDavid SilvaMayorProposed · by role24:50

I'll second.

Roll-call vote Passed 5–0 move to approve. I'll second. Hey,
Show transcript
Hey, Council Member Lewis. Aye. Council Member Sanchez. Aye. Council Member Hornick. Aye Vice Mayor Mead. Aye And Mayor Sobel. Aye

All right and we'll now

move on to item number 11 and I'll put it over in our city manager to start running the show

UnidentifiedUnidentified speaker 10Proposed25:07

Thank you, Mr. Mayor. Item number 11 is our one public hearing for the evening. This is Ordinance No. 26-04, an ordinance of the City Council of the city of Buellton, California revising floodplain management Chapter 17.06 of the Municipal Code. This is the public hearing with the recommendation being for introduction and first reading of this ordinance. The staff contact for this item tonight is our Public Works Director Rose Hess, and here she is.

Rose?

UnidentifiedUnidentified speaker 11Proposed25:45

Thank you. Um, city council members of the public. So this ordinance we have is a result of FEMA issuing a letter final determination they have recently updated their flood study and is scheduled for June 1st 2026 as part of their final adoption. As part of the requirement for the new flood insurance studies that will be issued and the flood insurance rate maps, which we call firms being issued and effective in Santa Barbara County.

FEMA staff has reviewed the local agencies floodplain ordinances these were made by the Department of Water Resources and their local floodplain specialist for the National Flood Insurance Program So, during this review they found just a couple of items actually that required updating in our ordinance in order to comply with the FEMA updates and these 2 minor items. 1 was updating the current maps so we have the current dates.

Um, recorded in there and then also requirement to submit new technical data within 6 months of the project completion. If the map requires any FEMA changes in the flood elevation which we currently do it's just not specifically stated within our ordinance. So with that, we've provided ordinance 26-04 which has been reviewed by both the city attorney and DWR's floodplain specialist finding it satisfactory and compliant with their new requirements.

So with that, we do have one minor update. I wanted to bring to counsel's attention. It is located on page 231 of the packet trying to jump through real quick as well my screen it is item. E, under the administration section. We have in there, this is an old note that we're meeting to update. It says provisions of the ordinance. Says all new development projects would be reviewed by the county of.

Santa Barbara and we don't use the county of Santa Barbara for our floodplain review. The city is its own flood plain administrator, but back in the day when a city became a city, the city didn't have the. So, since the last 20 years, the city has performed its own floodplain review should a development come in. We do want to keep that provision in there and reword it so that.

Um, at the discretion of the city's floodplain administrator. We may elect to use the county of Santa Barbara's flood plain department for development review should we come to an issue and require their assistance? We still have that option. But other than that, there is no. Other significant changes with the ordinance and staff's available to answer any questions.

ElectedDavid SilvaMayorProposed · by role29:22

Thank you very much before we go to staff questions do we have any public comment on this item?

UnidentifiedUnidentified speaker 12Proposed29:26

We do we have 1 public comment from John Darwin

ElectedDavid SilvaMayorProposed · by role29:30

thank you very much Mr Doran.

0:29 – 0:3712 turns

UnidentifiedUnidentified speaker 13Proposed29:38

The Los Angeles Times is reporting a high probability of a Super El Nino event this coming year. The consultants, the models, the supercomputers and the predictions all indicate that this will be an extremely dry or an extremely wet year based upon the mid-Pacific temperature oscillation known as El Nino. I don't think you folks are ready for an El Nino in terms of Zacca Creek and your floodplain management program.

The problem we have in Buellton is under your ordinance 93-33, there was a patchwork of maintenance and access easements held by the County of Santa Barbara which predates incorporation in 1992 You, the city of Buellton do not have flood maintenance and flood access easements around the counties dedicated in easements of record. So your system is an inconsistent patchwork of uncoordinated flood control management.

And your maps as of January 9th I have sent you by e-mail. Zaca Creek meets all of the required statutory criteria for government liability should there be another obstruction along Zaca Creek during an El Nino event. It is highly foreseeable and reasonable to expect that there will be A hundred year event in this coming year, in terms of flood control. I've been looking at all of your documents, and I believe the current ordinance belongs in Title 15 of the Municipal Code and not in some other new code section for floodplain management. And you need to have an integrated drainage plan for the city of Buellton.

I see documentation where a plan was started. I don't see any finished product. The problem with having your own in-house expert for flood control is you don't have the expertise, the resources or the experience that is contained within county flood control. You have a dozen flood control engineers down there, and they are your backup when an obstruction occurs. The county has the resources to come in and address the problem as has been the case on multiple occasions when Zaca Creek has decided to become obstructed and create problems on the edges of or inundating the Zaca.

I want to start by saying that you have not enforced your own stormwater ordinance. You have This is a proposed ordinance. The owners along Saka Creek are supposed to keep the floodway clear of vegetation and obstructions, and all of the language in this proposed ordinance already exists. Entitled 15. Of your built in municipal code. So what This city council has an obligation to the public, to completely review the flood control situation along and in Saka Creek.

And where is County Flood Control? Where's the County Flood Control Agency? You have a memorandum of understanding and a joint powers agreement with the County of Santa Barbara Flood Control Agency The city was solving, and you guys going back to 1993. And I don't see that that is agreement is in effect any longer at all. Thank you. Thank you very

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UnidentifiedUnidentified speaker 2Proposed34:59

much. No further

ElectedDavid SilvaMayorProposed · by role35:02

comments. We'll bring it back to Council for questions of staff. Council Member Hornick?

UnidentifiedUnidentified speaker 14Proposed35:12

I have a lot of questions. Thank you, Mr. Dorwin for bringing this to our attention. I want to start by asking for clarification from Ms. Hess about what she said we would change on page 231. Ms. Hess do you mind? I think we're looking at subsection E is that what you were referring to? That says all development subject to the provisions of this chapter shall be referred to the county flood control and water conservation district.

You said we're going to amend that subsection?

UnidentifiedUnidentified speaker 11Proposed35:51

Yes, I'm trying to scroll back to it on my computer here. Sorry. I don't even know where my computer jumped to, sorry.

UnidentifiedUnidentified speaker 14Proposed36:01

It's on page 231 as you stated right at the top. If i can ask a question while you're getting there. Pursuant to Mr. Dorwan's comments just for clarity right now this ordinance is referencing I believe it is floodplain management or flood control management? That's the question for any staff.

UnidentifiedUnidentified speaker 10Proposed36:34

This ordinance is floodplain management, it's distinct from flood control.

UnidentifiedUnidentified speaker 14Proposed36:39

Okay and so the provisions of this, not to get too in the weeds but my understanding is title 17 has to do with floodplain management and title 15 has to do with flood control management, is that correct?

UnidentifiedUnidentified speaker 10Proposed36:55

Title 17 does have to do with floodplain management. Title 15, I'd have to look it up real quick.

UnidentifiedUnidentified speaker 14Proposed37:00

Okay.

UnidentifiedUnidentified speaker 11Proposed37:01

Title 15, I'm sorry just to clarify that is our stormwater provision and it discusses in that particular one a watercourse protection.

UnidentifiedUnidentified speaker 14Proposed37:13

Okay so then would it be fair to say that our stormwater or any integrated stormwater drainage system would come under title 15?

0:37 – 0:4217 turns

UnidentifiedUnidentified speaker 11Proposed37:24

Stormwater, yes.

UnidentifiedUnidentified speaker 14Proposed37:25

Okay so when concerns rise about flooding that would fall under those provisions and this ordinance does not address them is that correct?

UnidentifiedUnidentified speaker 11Proposed37:34

No this ordinance is regarding development within the floodplain and it structures how that needs to be consistent with the FEMA and the FERMAPS and those different flood elevations

UnidentifiedUnidentified speaker 14Proposed37:48

Okay. So this does not, to be clear when you said no, you were saying no this does not affect our storm water runoff system? This is not have anything to do with that all right?

UnidentifiedUnidentified speaker 11Proposed38:00

No.

UnidentifiedUnidentified speaker 14Proposed38:03

That's correct yes that's correct?

UnidentifiedUnidentified speaker 10Proposed38:08

It does not have anything to do with our stormwater system thank you it has to do with flood elevations with regard to new development

UnidentifiedUnidentified speaker 14Proposed38:14

okay And then I'll just wait for you if you're on page 2 31, then.

UnidentifiedUnidentified speaker 11Proposed38:19

Oh, yes, sorry.

UnidentifiedUnidentified speaker 14Proposed38:20

Okay

UnidentifiedUnidentified speaker 11Proposed38:21

back to that? Yes so in that portion it talks about new development being reviewed by the county. And we're want to make sure that's a minute say maybe reviewed by the county should we need their support too and we don't have the sufficient staff or capacity in order to do those reviews.

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UnidentifiedUnidentified speaker 14Proposed38:47

Okay, so my question there is just

UnidentifiedUnidentified speaker 11Proposed38:49

changing shout shall be maybe referred to.

UnidentifiedUnidentified speaker 14Proposed38:55

I see what you're saying. The only question I have though is in the preceding sentence, it says that pursuant to the terms and conditions of resolution number 93-33 which establishes the joint powers agreement between the city and said district then we'll make these references so i just want to make sure if we're changing the word shall to may

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UnidentifiedUnidentified speaker 10Proposed39:24

As Mr. Dorwin correctly noted, this particular resolution is essentially a joint powers agreement between the county and the city of Buellton. The City of Solvang may be in there as well. I don't have it in front of me here. The intent at the time, the city was newly incorporated and did not have the staff capacity to review development projects for compliance with base flood elevation requirements.

The county through this joint powers agreement, through this resolution, let me back up, this resolution to provide that service to the city. Among other things, but this is one of the services it can provide. At this point, staff has or the city has staffing available to review development proposals to ensure base flood elevation requirements are met and therefore generally we do not send This particular subsection we're looking at here has been included in prior versions of our floodplain management ordinance and was pulled over because there were no changes to it, they just updated it.

In our review of it here, in light of Mr. Dorwan's comments, it was noted that it does require that we refer things to Flood Control and so because we don't need to at this point rather than having it say that development subject to this provision shall be referred to Flood Control It would say all developments subject to the provisions of this chapter may at the discretion of the city's floodplain administrator be referred to County Flood Control. That gives us the option in the event that for some reason we don't have staffing or for some reason it's important to loop them in, there are some circumstances where we would have development that might include flood control facilities and we would when that happens refer things to flood control as a matter of course anyway It just leaves our options open.

UnidentifiedUnidentified speaker 14Proposed41:33

Gotcha, so we wouldn't be in violation of that JPA? That's correct. All right. Yeah I just want to bring up one other thing that Mr. Dorwin mentioned too. He mentioned that the city doesn't have easements surrounding any county floodplain areas. Can we speak to any of that?

UnidentifiedUnidentified speaker 11Proposed42:00

Well, there's if there's areas there's areas for flood control like the city does not have as Mr. Ernst said the capacity to perform flood control duties and that's the actual maintenance of flood control devices. That's through the city. The areas that the county maintains. Is under an easement dedicated to the county flood control for such activities. So, yes, the city does not actually have any flood control easements throughout the city because we don't maintain any of those structures and facilities.

I'm hoping that clarifies what you're saying.

0:42 – 0:4711 turns

UnidentifiedUnidentified speaker 10Proposed42:45

to help clarify that. The need for the easement comes when there is a duty or an obligation to maintain those flood control facilities, The city does not undertake flood control functions. The city undertakes stormwater functions, as we've noted and then floodplain management functions which are different entirely from flood control functions. The flood control function is handled countywide by the Santa Barbara County Flood Control District which is a countywide district administered by the Public Works Department within the county and they hold the easements to maintain stretches of creeks where their facilities might be or where there's special work that needs to be done. Yeah, go

UnidentifiedUnidentified speaker 14Proposed43:41

ahead. Thank you. I appreciate that. I think the concern comes in when a property owner might not be appropriately clearing their creek bed of debris which might cause flooding right? So do we have anything to enforce that or would that be through the county?

UnidentifiedUnidentified speaker 12Proposed43:58

Maybe I could step in. Hi, everyone. Sorry. I'm joining by Zoom. Nice to see you all. I think that it's just to kind of like take a step back. I think the biggest way to see this or like the easiest way is when we think of property maintenance, that's Title 15, right? So to your point Council Member Hornick if somebody doesn't maintain their waterways on their property clear and stable and then it causes extra flooding, that's our enforcement mechanism is under Title 15.

Then we have flood control, which focuses on city-built infrastructure that according to what I'm hearing is actually under a special district that does that maintenance for us. And then we have floodplain management and so that's what's before you today and so that really focuses on new and upcoming development in drainage that will reduce our overall flooding risk in the future In compliance with the new updated FEMA maps that kind of outline that risk. So, I'm hoping that kind of answers your question there. It

UnidentifiedUnidentified speaker 14Proposed45:01

does and I know in a staff report that your office and staff have reviewed this for compliance and found it. Appropriate

UnidentifiedUnidentified speaker 12Proposed45:12

Thank you.

UnidentifiedUnidentified speaker 14Proposed45:14

I don't have any other

UnidentifiedUnidentified speaker 10Proposed45:14

questions. This is a case where the breach of the banks took place back in January of 2023. And the property owner is at this point unable to legally remove anything from that flood control or I appreciate that. When you say easements worked out,

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UnidentifiedUnidentified speaker 14Proposed46:22

I would have thought they already had

UnidentifiedUnidentified speaker 10Proposed46:23

that. They don't? They do not, there is a section of that property that does not have an easement and I've already had discussions with the property owner they're willing to grant that easement.

UnidentifiedUnidentified speaker 14Proposed46:34

I appreciate that, that touches on something i wasn't going to touch on but the 2023 flood that occurred in that area down That was caused by an obstruction, I think we determined. Do we know with last January that flooding? Was that saturation?

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UnidentifiedUnidentified speaker 10Proposed47:12

I just want to make sure that we have a clear picture of where the breach took place. The assumption is based upon where the flooding, where the flood water went is that it came from the same location.

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0:48 – 0:5317 turns

UnidentifiedUnidentified speaker 6Proposed48:00

Yeah, who's our flood administrator? That would be our public works director. Being through this like so many restrictions and but it's all FEMA verbiage.

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UnidentifiedUnidentified speaker 10Proposed48:15

Yes.

UnidentifiedUnidentified speaker 6Proposed48:16

So we didn't make anything up to sound pretty intrusive yet what you can do in as it comes to appeals appeal would come to I don't know, Mrs. Hess, would there be in an appeal situation would FEMA have to weigh in on appeals or are we locally responsible for

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UnidentifiedUnidentified speaker 11Proposed48:58

We're, we're not the stop check necessarily for that. We get another check at the county level when they submit further building application and the counties restrictions are actually tighter than ours when building within the floodplain so ultimately it's it's the county building permit at that point that would also stop and support our FEMA requirements.

UnidentifiedUnidentified speaker 9Proposed49:26

Thank you. Appreciate

UnidentifiedUnidentified speaker 5Proposed49:30

it.

UnidentifiedUnidentified speaker 9Proposed49:30

Any questions?

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ElectedDavid SilvaMayorProposed · by role49:52

Not what are the rules and implications that already exist. This is us making sure that anything that is developed in the future is compliant with FEMA rule, is that correct?

UnidentifiedUnidentified speaker 12Proposed49:59

Correct yes this wouldn't be a retroactive application but it does help ensure a less risk moving forward with new development.

ElectedDavid SilvaMayorProposed · by role50:08

And then from your review this is a policy that both city staff and your law firm reviewed and said brings us into compliance with what FEMA is expecting to see from a city of our size and all that correct? Thank you very much. Okay, I will bring it back for council discussion further any comments that we'd like to make at this point? Council Member Hornick any comments or discussion?

UnidentifiedUnidentified speaker 14Proposed50:34

I don't necessarily particularly about this ordinance. It does, I mean it does trigger potentially the concern that Mr. Dorwin raised that perhaps we do want to address whether or not our stormwater management system is ready for an El Nino event or something of that nature which I believe we discussed as Title 15 And so perhaps we could look at that and come back another day, and I'll talk to staff about that.

As to this ordinance, as long as our attorneys and staff have reviewed and we make the change we noted on the record, I think we're okay to proceed.

ElectedDavid SilvaMayorProposed · by role51:11

Thank you. Councilmember Lewis, any comments? I would like to make a motion to adopt the ordinance. I have a motion and second.

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UnidentifiedUnidentified speaker 14Proposed52:26

I just want to say, too, if I could, thank you Mr. Dorwan for bringing this stuff to our attention.

UnidentifiedUnidentified speaker 3Proposed52:35

I guess we move on now to... I got

ElectedDavid SilvaMayorProposed · by role52:37

a little bit of trouble up here. We're onto Council Member Comments. Thank you for joining tonight. All right, we'll bring it for Council Comments and Items. Okay. Thank you, Mr. Mayor. Just to give him a break from talking so much, how

UnidentifiedUnidentified speaker 6Proposed52:52

about Councilmember Sanchez? Any comments? I don't

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UnidentifiedUnidentified speaker 10Proposed53:06

know if that's what you were talking about. That is a standing ordinance within the municipal code. If you would like me to review that, I would need council consensus to go back and bring that back for review and discussion. We would probably start with a business item just laying out the general requirements

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0:53 – 0:5812 turns

UnidentifiedUnidentified speaker 6Proposed53:37

I don't know if there's an interest in doing that. I know a lot of people want to rent out part of their house or that and we know the rules were broken pretty bad, changes everything but it's some kind of rules that you get one out here and you're closed You know, for the daily rental that wouldn't be a problem to the city. And it would be income too with TOTs.

That's one thing we've been talking about people doing it without permission because they get beat out of the TOTs. It was just a point of discussion. If you know what else there is, that's fine.

ElectedDavid SilvaMayorProposed · by role54:30

I don't personally have, but I worry sometimes about what we open up with that type of thing. So I would probably be more resistant personally. That's good.

UnidentifiedUnidentified speaker 5Proposed54:38

Yeah, I agree. We do have a long-term rental ordinance here and I think that that's fine. I think that that's what the citizens want. No other citizen has ever expressed an interest in me to have short term rentals back into the city. So maybe if there is more citizens show the interest then yes, but right now no thank you.

UnidentifiedUnidentified speaker 8Proposed54:58

The issue of not having enough rental for locals, not enough rentals for locals is a big issue. And if we allow short-term rentals then we detrimentally affect locals looking for rentals. So like I see both sides of the equation but I err on the side of people who live and work here already are struggling to find places to live and I think that would make it more difficult.

UnidentifiedUnidentified speaker 9Proposed55:29

Thank you. Any other comments, though? No, not at this time, thank you. Council Member Lewis?

UnidentifiedCity ClerkProposed · by role55:36

No comments.

UnidentifiedUnidentified speaker 9Proposed55:37

Council Member Warnick?

UnidentifiedUnidentified speaker 14Proposed55:39

I do have a couple. So I just wanted to address or bring up the idea of traffic issues and this is just if we could float to our SB CAG rep which I believe is still It's frustrating to go 246 from solving and back. I believe there was a traffic backup today causing significant delays from solving to Buellton. And if that's a light timing issue, man we got to figure that out.

And, you know, we have a business population that people who live here want to see economic development. We also have people who don't want to see any development because they're just frankly concerned about traffic and so even with what we got, we still already have this backup situation if that can be remedied by traffic timing traffic light timing then I know that this is not something that you can just pull out of your back pocket And I do believe, and I hope that you can answer this but I do believe that if that's a report that we can file at SPCAG on our website which I believe is the answer there. I would encourage us all to do that and just have them come out and adjust these light timing issues because that just is going to make everybody's quality of living go up.

UnidentifiedUnidentified speaker 10Proposed57:04

I will note that I was trapped in yesterday's mess coming back from Solvang as well as I believe Council Member Lewis. When we when I got to the McMurray Highway 246 intersection, I did notice that there was a time a signal timing issue going on there that the lights on either side of the overpass would be green but the light below the overpass would I reported that yesterday. Apparently, we had similar problems today and I believe Public Works Director Hess reported that this afternoon so and I know when I reported it yesterday there were several others who had reported it before I did.

It's to Caltrans not SB CAG but nevertheless

UnidentifiedUnidentified speaker 14Proposed57:48

SB

UnidentifiedUnidentified speaker 10Proposed57:48

CAGs a good avenue to reach out to Caltrans if our current I'm not sure if that's what you're asking.

ElectedDavid SilvaMayorProposed · by role58:03

Yes, so I'd love to jump in here. So SBCAG we do have so I have contacted them before it's gone through SBCAG like any suggestion and I was redirected like you have to submit a ticket. So SBCAG told me to submit a ticket on there. So I have submitted one as well. Next week there is an SBCAG meeting and there is a Caltrans rep there. And what makes it easier is that when a number of complaints had been filed when you then see the rep face-to-face, it's just like girl, there were like 30 complaints you just got.

It makes it easier for them. We are aware of the issue and expedites it. The volume of public outreach or us all reporting it, I see them in person. They usually write something down and we will follow up. Caltrans is not a permeable entity even through SBCAG.

0:58 – 1:0623 turns

UnidentifiedUnidentified speaker 14Proposed58:55

I'm not aware of our, you know, Brown act and discussing things outside of agenda. But I would just use this time to implore you as much possible when you meet with that liaison. To just bring up this idea that this happens frequently enough is there something we could do to reduce that frequency? And that's all I wanted to say about that.

ElectedDavid SilvaMayorProposed · by role59:15

It is well known that I am not enjoyable at those meetings to talk about what's happening in Buellton.

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UnidentifiedUnidentified speaker 11Proposed59:43

We did have a lot of notices from PG&E yesterday about power off. Power restored, powered off. It's like every few minutes throughout the entire day so that could have added to the problems or short circuited something I'm not entirely sure but hopefully we'll get some information shortly.

UnidentifiedUnidentified speaker 14Proposed1:00:03

I appreciate that. I would be happy to come back in future discussion and talk about if that's a funding for batteries, street lamps, whatever we have to do. Let's knock that out.

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UnidentifiedUnidentified speaker 10Proposed1:00:33

Thank you very much.

UnidentifiedUnidentified speaker 11Proposed1:00:41

Thank you, Mr. Chair. I don't have any updates yet on the speed humps but I have been working with Tetra Tech on our design for the skinny 246 and we're going to get that underway in the next few months here. So, we should be moving along that this summer

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UnidentifiedUnidentified speaker 14Proposed1:01:16

when you get like an update at some point. Um, that'd be great just because I know and then it was something of an update but the last that I remember was, we submitted 2 plans for them to sort of see what they thought. And that was less.

UnidentifiedUnidentified speaker 11Proposed1:01:29

Oh, yes. And so since that time we have heard back from Caltrans in their feasibility study review and they felt that both options are feasible And that they directed staff to go ahead and submit an application for encroachment permit for our plans for construction. So, that's where we're at right now. So we've working with Tetra tech on I can't remember which option it was but anyways to move forward with design starting with surveys etcetera for our encroachment permit so they did not veto any option.

UnidentifiedUnidentified speaker 14Proposed1:02:12

So we get to choose which option we go with.

UnidentifiedUnidentified speaker 10Proposed1:02:16

Right, we are going... We still have to see whether they approve it in the end but... Right

UnidentifiedUnidentified speaker 11Proposed1:02:23

right so we're moving forward with I think it's option A. It's reducing It's reducing to one lane each direction. We're maintaining the entire right-of-way, including the curb-to-curb, but restriping it so that it is one lane in each direction and then we'll go through an encouragement permit with that particular option. We want to move forward with a design that would have the most immediate impact for reducing speeds.

UnidentifiedUnidentified speaker 14Proposed1:02:55

Great. Is that something we'll see before it gets submitted or is just going forward?

UnidentifiedUnidentified speaker 11Proposed1:03:00

We'll bring it to Council before it gets submitted. Probably like at 85% design.

UnidentifiedUnidentified speaker 14Proposed1:03:06

Thank you. And then there's the speed bumps in Riverview Park question.

UnidentifiedUnidentified speaker 6Proposed1:03:13

Public comment, I can't imagine that happening that you would take the highway down to two lanes. It just surprises me that we're talking about traffic I think it would

UnidentifiedUnidentified speaker 9Proposed1:03:31

be brought before council.

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ElectedDavid SilvaMayorProposed · by role1:03:52

And I think you were third,

UnidentifiedUnidentified speaker 5Proposed1:03:55

so yes. So my public comments is I just wanted to say I went to the League of Cities conference and it was great to be there. The biggest part of the conferences that I enjoy are kind of seeing what other cities are doing and seeing what's working for them or what's not working for them in a lot of the cities. I thought this was interesting have really worked on their branding essentially Um, this idea of like what is the city's identity? Like how do we like how do we market Buellton as a city not and I'm not talking about the tourism aspect of it. Although it would help with the tourism aspects of it but just the idea of like what can we do to make Buellton look great I'm going to be talking about We have a city seal. It looks great. Do we want it to be a little updated?

Maybe it just needs to have a little more pixels to it, right? Things like that and so kind of pushing forward with Buellton as more of an identity and so a lot of...it's my understanding a lot of consultant groups work on that kind of stuff and I would like for...I'm interested or I'd like staff to kind of go out see what these consultant groups can do for us and just see what kind of services they offer to kind of give Buellton more of an identity essentially So if anyone else would be interested in them, that would be great.

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ElectedDavid SilvaMayorProposed · by role1:05:26

I think that we could definitely...I know it seems like a lot of things haven't been updated since 1992 and there's a lot of opportunities for that so i think at least taking a look and seeing where this could help would be a good idea. I think we deserve to have a city that has some of these items taken care of so I'd be open to it.

UnidentifiedCity ClerkProposed · by role1:05:44

Yeah not opposed.

UnidentifiedUnidentified speaker 14Proposed1:05:46

I'm not opposed to, you know, any consultant coming in and giving us advice on how we might rebranded be more pretty. But I would say that I know staff has a long laundry list of items things do so I wouldn't want them to take away from doing that. You know, our chamber of commerce is oftentimes leading the charge on how we brand and how we work. I mean, I know that's different from what the city is itself.

And so I think that if staff can incorporate this idea in a website rebrand, then I'm all for it but I don't want to create another. To do item for them when we have other stuff that I think that they should be working on.

ElectedDavid SilvaMayorProposed · by role1:06:23

I think it's a, maybe just at least taking a look and see what's out

UnidentifiedUnidentified speaker 10Proposed1:06:27

there. Low lift? Take a look. I'll do just some real high level kind of what might it cost. Yeah. And then I'll bring an item back that we can discuss down the road about kind of an update on our priorities list to see what's been ticked off the list and the council can establish you know fill in those gaps with new priority items if that's one

1:06 – 1:127 turns

UnidentifiedUnidentified speaker 5Proposed1:06:52

Okay, great. Thank you and the other thing that we also one of the things that I've kind of has been coming up like a leader has won and I've also heard about a few of these at the conference is drone shows are the new like big fun thing. Um, I'd love to look into possibly getting a drone show for winter fast here in Buellton. Solvang has the big fireworks for 4th of July, which is obviously an incredible draw. Our Winterfest is growing. It's doing great. We have the light Botanic Garden. They always do a fantastic job this past year we've got our huge Christmas tree and I just feel like that event is growing and it's becoming one of those events that people talk about they want to be in Buellton for Winterfest And I think that having something that draws a crowd like a drone show, that is impactful.

I mean you can see them for miles and miles. I think it would just be a really amazing thing to have here and it would be something really new and no other city here is doing that. And I think that would really put Buellton on the map for that event. So I'd love to just find out what's available. I don't know that much about drum chumps, so I just like to find out what it's like, what's it available and see if we can bring one here for Winterfest. And the reason I'm asking now is because I know it's only May but I just don't want to get behind the ball. I want to make sure that if we decide to go forward with it that we have plenty of time to execute it as necessary. So that's why I'm bringing it up now. That's what I would like to have.

UnidentifiedUnidentified speaker 8Proposed1:08:18

Is that better directed The city's not hosting

ElectedDavid SilvaMayorProposed · by role1:08:26

any of these

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UnidentifiedUnidentified speaker 5Proposed1:08:43

We are paying for it anyway. So we might as well be the people in charge, right? I forgot what we did. Right exactly so if we look at vendors as a city then we're being more selective about how we're spending the money and what we want. And so that's why I wanted to kind of put it on us essentially. That was my thought anyway.

ElectedDavid SilvaMayorProposed · by role1:09:03

As someone who was at the last one with our Christmas tree and our holiday, whatever. The lighting of the tree. I know we had so many. We tried seven times to light that tree. I think that it you know, I feel like there could be an opportunity for us to continue to grow our branding in our tourism. I could imagine that our chamber would get really excited about this community and it would add a little pizazz. So I'd love to see what it would look like at least if it's a feasible thing from Thank you

UnidentifiedUnidentified speaker 6Proposed1:09:30

so much. Great.

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ElectedDavid SilvaMayorProposed · by role1:09:44

So a few items for me, wanted to take one was just to say I know we maybe talked about the last thing where I wasn't able to be here but thank you to everyone who came for the benefits workshop and all the nonprofits who came. I believe that almost 15 organizations there so just thank you for everyone who was part of that. We do have another workshop coming up an e-bike workshop Wednesday May 27th from 6 to 8 p.m at Honoda Middle School in partnership with Move Santa Barbara Thank you to our staff and everyone involved with It was a huge community production.

The UCSB's wildfire institute hosted a discussion about wildfires and how do we get faculty or academias in the space, policy makers, local fire leadership with our fire department and things like that. And they were just having a discussion about how we talk about wildfire preparedness. It was hosted by the The fire safe council posted it. Unfortunately, when an application was submitted to the state we were the first one to not be funded due to a lack of funds. And so we are all working together to see if there's a chance for our agencies to figure out how to bridge that together so we can have one as a collaborative effort. So I just wanted to share that that's becoming the gold standard if you can't really talk about fire preparedness until you get one of these CWPPs because it's a objective analysis with like actual fire It was just being a big thing to talk about, how it's really falling on local agencies to take the lead on this as the state and federal budgets kind of squeeze any of this proactive stuff.

So I just wanted to put that on everyone's radar. And then finally, I just wanted to bring up an opportunity. There's been some concerns within our parks around locally about smoking in the parks, drinking in our parks and it was brought that maybe some clearer signage would be helpful to them at making sure they have specifically speaking because we've heard a lot about within village park specifically. I don't know if there's been complaints on other ones but just making sure that our signage is appropriately showcasing that. Thank you, Mr. Chair. I just want to make sure that we are making sure that it is clear that these are non-smoking zones and to make sure people understand the rules would be good

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1:13 – 1:1811 turns

UnidentifiedUnidentified speaker 10Proposed1:13:12

I think it's important to

ElectedDavid SilvaMayorProposed · by role1:13:13

make sure that the signage is all in compliance.

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UnidentifiedUnidentified speaker 14Proposed1:13:39

I don't think this is an official committee report, but I'm part of the Early Childhood Education Coalition and they have quarterly meetings. I went to one a couple weeks ago. I think it's a fantastic coalition spearheaded by And I know that I've talked to city manager Scott wolf about getting united way here. The main thrust of these coalition meetings is to identify and spread information about the early childhood education and.

The reality that funding does not exist, market forces cannot support paying early childhood educators a livable or even competitive wage and keeping daycare affordable for families. There are scholarships and United Way has also spearheaded local scholarships for missing middle. That's for families who don't qualify for any kind of government assistance for early childhood education and daycare use but still need help This last coalition meeting, we had presentations from individuals from Vermont who championed a Senate bill that was passed that amended their payroll tax for employers.

Added like 0.4% to their payroll tax to help fund early childhood education and they divvied that up between I'm going to bring that up now because one, I attended the meeting and two, I know I've talked to this council before about doing something with United Way. But really the takeaway for this information is that, again, market forces alone cannot sustain early childhood education. In Buellton we have a shortage of preschools, a shortage of daycare centers and on top of that we have families that struggle to afford It's a problem big enough that they would increase the payroll tax.

I'm bringing it up. Buellton is a town of 5,400 people. Buellton, I feel like, gets to have nice things because of where we live and because more than two-thirds of our income comes from transient occupancy tax and sales tax from gas stations or hotels, the ostrich farm, the car dealerships. I really would like to emphasize this council and to the public And I would like to have you know the way back for presentation on what those things might look like, specifically how we can help individuals who are going to establish daycare centers to provide a location and also permitting. There are nonprofits that have worked with the city of Toledo to expedite and. And basically have 100% success rate and getting permitting accomplished for early childhood education centers scholarships for the missing middle United Way already has this, but it needs funding.

I believe 5 different families from built in have already received that in the last year. This is the real kind of crux, is being able to pay early childhood educators more money. A lot of times to keep prices low for daycares and preschools, early childhood education centers pay the educators minimum wage and very little benefits if at all. We're aware of the law that allows fast food workers to receive minimum wage of $20 an hour plus benefits. And so you have early childhood education centers not able to compete with Honestly Panda Express and McDonald's. And these are people, studies repeatedly show early child education is vital for just setting your citizens up for success.

And so if we can do that I think we could be a leader in moving the state of California in the right direction. And so I'm really hopeful that we can have United Way back and we can talk constructively about what that might look like for Buellton. That's it?

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UnidentifiedUnidentified speaker 9Proposed1:18:10

Are you looking for

UnidentifiedUnidentified speaker 14Proposed1:18:13

council consent? No, this is my report. I mean, I've talked to Scott about this and I'm just letting you guys know it's coming.

UnidentifiedUnidentified speaker 9Proposed1:18:20

Okay.

UnidentifiedUnidentified speaker 14Proposed1:18:21

Great.

ElectedDavid SilvaMayorProposed · by role1:18:22

Anything? Okay. Council Member Lewis.

UnidentifiedUnidentified speaker 8Proposed1:18:26

No comments, no committee reports, none at

ElectedDavid SilvaMayorProposed · by role1:18:28

all. Council Member

UnidentifiedUnidentified speaker 6Proposed1:18:29

Sanchez. No committee. We are going to have an aquatics meeting on Monday. They'll be at the school. We have a sustainable water meeting on Monday morning as well.

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1:18 – 1:232 turns

ElectedDavid SilvaMayorProposed · by role1:18:53

There's a discussion at the last meeting about every year there is a certain amount of money that is set aside for regional active transportation plans. This year, there's a smaller pot because we borrowed money. So this year there was a smaller pot that we usually get for active It's been a long time coming. The board decided to change that from doing a countywide scoping project into splitting it into a pot of money for South County and a pot of money for North County. Most funding sources are broken into these two pots because there is a So there is money now set aside for a pot for North County and a pot for South County, and they have asked for a call for projects. I've informed our staff already, so Director Hess and our city manager Wolf know about it.

Just want to raise your awareness that these things do happen now and then, and that we just need to kind of keep an ear out for that in any other things we're going. And they are only going to take one project and it's weird when you talk transportation how short of a runway 175,000 plot does but no at least Buellton has a chance to get in competitively for that. Just wanted to make that on our radar too if there is any feedback make sure to let them know so we can get the application in. And then finally from just a report back on the world of energy, just be aware that there's a lot of bills going on right now. The assembly is going through and the Senate are going through their appropriations which is basically when I think please we need money and then all the bills die.

And so right now there's discussions from the energy perspective about transparency affordability at the top of everyone's mind for that they were discussing how even if you were to cut We're talking about how can we lower rate payer prices and I'm using a bunch of acronyms right now. It is as thrilling as you think it sounds when you say that out loud. I will end it there.

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UnidentifiedUnidentified speaker 10Proposed1:22:05

Thank you very much. Mr. Sweeney here has his own request the City Council is in receipt of a essentially a demand letter from Santa Ana's Valley Horseback Rides, Mr. Bob Sweeney is the owner of that company they operate a stable facility offering horseback rides petting zoo and related experiences on the former Willamson property just down below the library site A claim was filed with the city clerk last year in November for damages. The list of damages is included in your staff report. The claim was reviewed and after a lengthy review, the JPIA claims adjuster came back with a denial of that claim.

At that point, Mr. Sweeney contacted me and indicated a desire to request relief from the City Council directly. And that's what's going on here tonight so... I'm happy to answer any questions you might have. Thank you very much.

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1:23 – 1:285 turns

UnidentifiedUnidentified speaker 15Proposed1:23:55

Kind of a chronology summary of all the things that happened. You all have that, I don't know if you've read it? If you haven't read it, then I'm happy to go through it with you and kind of go into the weeds. If you're up to speed we can kind of cut to the chase so everybody read it okay? So my first kind of question, the communication with the insurance company was very disappointing. I had one conversation over five months seemed like it went well The letter I got saying I was declined didn't mention why, there's no reasoning.

So my first question is do you know if the city is covered with tenant work interruption coverage for businesses that are injured by construction products and other specific insurances that cover the municipalities can purchase? Do you know if you have that?

ElectedDavid SilvaMayorProposed · by role1:24:49

We are not able to do a Q&A with public comment. We have to sit here and stare at you the entire time.

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UnidentifiedUnidentified speaker 15Proposed1:25:15

Do we know if, when the CEQA study was done for developing that parking lot, if they did any soil samples, did they discover anything toxic, DDT? Anything else that was in there probably for 100 years when it was a farm. That's another question. So what this all led to was a huge interruption of my business. You know, as it says in the note I found out about this when the bulldoze driver showed up and asked us to move our cars and take out our parking area and move the stanchions because they were about to start bulldozing.

When this project was going to start. I asked repeatedly over the five years I've been there, do we know when? And they were like it's coming, it's coming, it's coming and I never heard when it was coming and didn't have a chance to prepare. It just wasn't fortunate that it was during the peak time of my business between May and end of August. As the report lays out, I lost $112,000 in revenue It was middle of summer, it was absolutely miserable.

People would drive into the park, get across those metal grates and just turn around and leave. They couldn't pass it through. Myself and my staff lost six tires going across it over the summer. Anyway so you know I'm hoping we can do something. You know I love my business here. I love the relationship with the city People love our business. Just this last week, I entertained the management company that owns Flying Flags. They brought their whole corporate staff out for a day at our place. They loved it.

Week before that I was on KTLA, great promotion. Week before that the new Mic Sub place that was called Mic Sub? Jersey Mics. They all brought their executives out for a ride and had a great day. So I know I'm providing community service or a really good one and I want to continue doing that. I'm renewing...I'm hoping to renew my conditions permit license later this fall But I need, I need some help. This was a huge thing for me big blow obviously come by Christmas we couldn't even do it so 30 people didn't get a Christmas bonus because of that and our revenues were tough over the winter. I do come by Christmas from business side to survive the winter and it was terrible this year. So anyway what do we do? What can we do that's my question okay We can't go back and forth.

Does that conclude what you'd like to bring? I mean, you can ask me, I don't know. You all have my information pretty candid about all this so. So

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ElectedDavid SilvaMayorProposed · by role1:28:00

then I think what I would ask is if we could our assistant attorney being on there as well or city manager how will be an appropriate way for proceeding within the space right now?

UnidentifiedUnidentified speaker 10Proposed1:28:09

So what's I guess appropriate is for the council to discuss amongst itself whether or not that's something you'd want to consider. Ms. Gutierrez is here, our Assistant City Attorney, to help guide that or answer any questions from a legal perspective and if you come to a decision on that this evening we can I'm going to ask the city attorney to take care of that. If you would like additional time to consider this, after the discussion you have additional questions of the city attorney that you'd like to ask and we can continue this for two weeks and bring it back and that will give everybody an opportunity to reach out to the city

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1:29 – 1:3410 turns

UnidentifiedUnidentified speaker 14Proposed1:29:06

I just have one question. So when the parking lot was being constructed, was there any route to your stable?

UnidentifiedUnidentified speaker 15Proposed1:29:14

Great question. So no. I immediately met with the Tetra Tech engineer and Bobby, the Lopez Construction Company. They did not know there was a business there. The type of tech person say he didn't know we were there. And I said, when did you draw the plan up two years ago? Well, we were here three years

UnidentifiedUnidentified speaker 3Proposed1:29:38

already.

UnidentifiedUnidentified speaker 15Proposed1:29:41

There was no plan for us to park. I called Rose. I called Scott that came back the next day and said, OK, we're going to carve a road around the back for you and we're going to carve out space in front of your stable so that people can park diagonally. And they did that in the first couple weeks. And that road, Lopez was great. Every couple of days they would regrade that route in around the back but no there was no provision made for parking at all and you know the other part of it is I put in the letter...

The whole idea this bathroom their building was comical. I mean where they were going to put it the first time they were gonna cut a 10-foot deep ten foot wide swath across the whole stable Under the residence where my manager lives, under our wash rack dry well through the middle, through the goat pen, through the pony pen to the other side. And they were like we're gonna start that next week can you just move? I'm like what?

So I said look you got 15 acres here can you move the building so he moved okay so he was really reluctant. Called Rose again she intervened and they moved it to the bottom of the stairwell coming down I met with a guy, came back and said okay we're going to put it right here. And I literally said Lewis could you turn around please? And he turned around and said what do you see?

Is that your sign? Yeah this is the entrance to my business. You're going to put a bathroom in front of the entrance to my business. Oh he said. So going back to a third revision, they moved it 20 feet the other direction. Now it's gonna be next to my entrance which I'll have to move entrance forward so people can see how to get around the building. I mean that's kind of what I was dealing with and it was very unsettling and that's just when it started. And then they said in July, my manager called me one day and said all the horses are sick. I don't know what's wrong. They all had their eyes were shut closed. It's not running down hives everywhere.

They all got something. So that's why I'm asking about was there DDT in there? We don't know what was in there, but then a few months later that that pony mysteriously just died so something going on um you know we hung in there we kept going we managed to do it and when the dust cleared literally I just I had to come to city and ask for some help so

UnidentifiedUnidentified speaker 3Proposed1:31:55

thank you Any questions Council Member Lewis? No question. Any questions for Council Member Sanchez or Mr.

UnidentifiedUnidentified speaker 6Proposed1:32:02

Sweeney? You have a five-year lease coming up, did you have any other plans when you got here you were from another somewhere else and then did you have any other plans to go anywhere else or did you assume that it's just going to be continued? From here forward in Buellton? Right, you had a five-year. Yeah we had a five year and to me I mean it was when it came about it was a temporary deal that it wasn't going to end up my vision was it would have I thought it was going to go next to the way down by the river which would have been out of any construction zone that but I always assumed there wasn't part When they decided where to put a bathroom, they weren't thinking that the bathrooms was permanent part. And if they didn't come down and look, that was bad on them

UnidentifiedUnidentified speaker 15Proposed1:32:58

but... Well, they drew the whole parking lot around by facility. I mean, they took that into account. They just didn't take in specifics of where the entrances were and where our parking was and all that. I mean, my guess, my view is that we engaged this condition use permit five years ago with the intent of seeing how this all goes for everybody. We're just hitting our stride now and you know the first year we were flooded by that horrible 50-year flood and you know my wife and I both got cancer, we both survived that and now we're just kind of hitting our stride. This is the best April we've ever had so we're back and that's great. I'm looking forward to a good year. So I do want to renew and I do want to stay.

UnidentifiedUnidentified speaker 9Proposed1:33:40

Any further questions? Vice Mayor Meade, any questions? No question. Thank you.

ElectedDavid SilvaMayorProposed · by role1:33:45

The only one I wanted to know is within the claim here we have $52,050 in lost income and related with the related death of the pony and then in addition $60,000 loss revenue from forced cancellation Cowboy Christmas. And then I'm just curious what made you decide on the request of the $50,000?

UnidentifiedUnidentified speaker 15Proposed1:34:03

I'm just trying to be a team player. Okay. I mean it's not asking me to cover every cent I lost I just wanted to say thank you for your time. I adjusted accordingly as best I could. We are obviously doing better now, but I would like to buy another pony and cover some of my costs.

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1:34 – 1:3821 turns

UnidentifiedUnidentified speaker 6Proposed1:34:37

Monitor the air, but we had a better and it's not an accusation or can

UnidentifiedUnidentified speaker 14Proposed1:34:43

I interrupt or ask if this is going to potentially go the way of litigation? Is this not something we should discuss in closed session.

UnidentifiedUnidentified speaker 12Proposed1:34:52

Sorry if I may just step in here. Just based off of the comments that Mr. Sweeney has been making, I would like a chance to review the CEQA documents that he's referencing and kind of look into that a little more with your city attorney Greg. So if my recommendation would be to continue this item and maybe work through some of that before we bring this back for a decision for you.

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UnidentifiedUnidentified speaker 6Proposed1:35:20

I will let the council

UnidentifiedUnidentified speaker 9Proposed1:35:22

know if you have individual

UnidentifiedUnidentified speaker 15Proposed1:35:46

And just my if I might add this, I put it in my letter but it's not my intention to be litigious about this at all. I just want to carry out my business. That's it. I love I love my relationship with the city and what's going on down there. You know you know how I feel.

UnidentifiedUnidentified speaker 14Proposed1:36:01

Thank you Mr. Sweeney for being

UnidentifiedUnidentified speaker 15Proposed1:36:02

here tonight.

UnidentifiedUnidentified speaker 14Proposed1:36:03

I would just suggest too if I may like always is a good idea in my opinion to shoot an email to your council members and just say hey this is going on before becomes a large issue

UnidentifiedUnidentified speaker 15Proposed1:36:13

Well, I did go through the protocols that we met with Andrea first for sure. For sure. I'm going to get through it. That was Scott second. I filed the procedure with the city clerk. I am not saying you didn't. The letter was the first I heard about it. Gotcha. Well yeah. When I went to Scott he was very empathetic about it And he said, but I don't have the authority to help you. It's got to go to the city and then back to me. So that's how this all started.

UnidentifiedUnidentified speaker 14Proposed1:36:36

Thank you.

ElectedDavid SilvaMayorProposed · by role1:36:37

So it sounds like staff direction or council direction is for us to continue this and further discussion. OK, great. We'll do that. Thank you very much for being here tonight.

UnidentifiedUnidentified speaker 9Proposed1:36:46

Thanks for

UnidentifiedUnidentified speaker 10Proposed1:36:46

coming. All right. We are ready for item number 13 this evening, CalPERS pension funding update and discussion and direction on options

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UnidentifiedUnidentified speaker 16Proposed1:37:11

Good evening, Mayor and members of the City Council. This evening we will be having a presentation to go over the city's CalPERS retirement plan. The city participates in Classic and PEPRA. In the past several years staff brings back to City Council annual reports on the status of our CalPERS programs So as the city's financial position strengthens, our focus is expanding beyond reducing the unfunded accrual liability which is known as the UIL.

This addresses long-term contribution volatility and ensures fiscal stability. Tonight's presentation will be outlined with the most current actual report, key factors that are affecting the city's pension outlook and considers the next stages of our pension risk mitigation strategy. At this time I would like to introduce our consultant Dan Matsiewicz who will present the CalPERS funding status and will present recommendations to City Council.

Thank you.

ElectedDavid SilvaMayorProposed · by role1:38:29

Mr. Mitzutz, are you with us?

UnidentifiedUnidentified speaker 17Proposed1:38:34

I'm gonna have to log off and log in. It's

UnidentifiedUnidentified speaker 10Proposed1:38:37

not... All right, I'll wait for you to do that and I'll let you write back in. Okay

UnidentifiedUnidentified speaker 3Proposed1:38:45

we're just doing a quick five-minute recess

ElectedDavid SilvaMayorProposed · by role1:38:48

so we can be filmed while we try to figure

UnidentifiedUnidentified speaker 3Proposed1:38:50

out how to do Zoom.

1:48 – 2:032 turns

UnidentifiedUnidentified speaker 1Proposed1:48:38

Thank you for your patience.

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UnidentifiedUnidentified speaker 17Proposed1:49:03

Usually they're uncomfortable meetings, but this is a I think a lot of good news with some caution. So just so we're all on the same page the city uses a defined benefit plan where it guarantees the benefit not just the contribution Oftentimes, so I talk about agencies having to backstop the investments if CalPERS falls short of the investment return. But in the last several years CalPERS Um, has beaten the expected rate of return. So the agency is benefited from though from the favorable investment returns. So that's a bit of good news and what I like to say is that investment income of all really the economic and demographic assumptions, it's really the investment income that really drives the cost of the pension plan. So that is embedded in really the normal costs of service credit.

And so if there is a shortfall in earnings Since it's presumed to be in the amount that you collect for the annual service credit, if you fall short they'll send you a bill essentially saying you've under collected for that year. If they've over performed, they give you a credit and so we've had a credit for the last three years. So here's that normal cost, the components of the total contribution FOSTA, the annual service credit and the self-correcting mechanism is the UAL contribution.

And that makes up the total employer contribution. And the good news is really the last we're on track now we're still 45 days out but as of April 30th CalPERS had a year to date return of 12.1%. And if you notice, going back into history it's not hasn't been all that common to have three years in a row. Usually they're for every couple good years there is a There are some underperforming years. The notable exceptions were in the early 80s when fixed income rates were in the double digits, and then through the dot-com exuberance. And you might consider drawing some parallels there where even though that there's been some market news that hasn't been All that great higher inflation, higher interest rates. The exuberance around AI has really bolstered the investment market.

They've really sloughed off a lot of any of the bad news that's been out there. We can also see prior to the housing crisis and the Great Recession we also had four years of straight returns. Not saying that there's going to be a crash anytime soon, but we rather might have maybe a couple more years of positive return. Very hard to call when the top of the market is and when there will be a correction.

But that's what I would caution the city on. The good news is that there is usually a correction at some point. The city has also improved its funded status by proactively making discretionary payments above and beyond the minimum employer required contributions. And those, in short form what we call ADPs have contributed to roughly 18% funding improvement Based on those council actions. So the city should be congratulated for its proactive efforts as you can see, as we look at the funded status has projected through 2026 if that 12.1% investment rate holds You may be looking at a funded status north of 95, 96%. So very good funded status. You can see you're well above the average statewide CalPERS projects that they may end up in if the rate holds in that 82% funded status.

When we look back at the last valuation year of 2024, That city of Buellton was already leading the pack at 87%. And so we would expect that trend to continue and be near 100% funded status. And so I talked about that annual amortization payment, that's that self-correcting mechanism. So in your latest valuation, your payment would follow this pattern And would otherwise follow this pattern, but with the 12.1% return coincidentally that was earned in 2025 You can see it made a dramatic improvement. And your UAL required payment component would be coming down dramatically when we factor in the 2026 return, we see that hypothetically your payments would stop UAL payments you'd be fully wouldn't require any additional funding Payments after 2930, that is rarely the case.

I mean you may go into funded status or assets in excess of your liability for some period of time but when we look back in history there's always even if it's a shortfall that there will be some loss and that loss Um, would be would extend that payment period out 20 years now might be very small. But I would urge counsel not to say or make a promise that we expect our UAL to be completely paid off because that is under by this date, because that is under the presumption that CalPERS earns 6.8% and all future actuarial assumptions are exactly met, and that's a big if so you're doing very well managing it but the word of caution is we'll talk about the caution in a minute but if we look at the cost breakdown the normal cost is represented in orange That represents cost to your service credit.

The UAL repayment, we see that coming down dramatically. The only reason you see your normal cost actually accelerating upward is because there's the presumption that payroll will grow at 3% per year. So even though rates are coming down as the classic employees leave the workforce so it stays flat As payroll continues to grow and, you know, classic benefited status are out of the workforce then your normal costs would just grow with payroll.

Not not doesn't represent a cost increase just the assumption that your payroll is increasing. So the risk, you know we've talked about that investment returns pay for typically 50 to 60 percent of the pension costs but any underperformance in any one year can result in a significant change in funding status and increases required employer contributions even if your plan is highly funded.

Um, so ultimately UAL contribution spikes can threaten service delivery if you're not expecting it. And of course nobody's You know, we hope for the best but we need to plan for the worst. And with the CalPERS current investment portfolio I know this is a statistics heavy graph but what it shows is under you know really normal cycles that That experience losses just a slight market loss of 6% would represent would increase the city's unfunded liability by.

Uh, 1.8 million dollars in any one year and when we look and to say okay well let's look at um so not just a common but say well you know only five you know if we were to say 95% of results are below less than 14 percent then that When we look at a loss, market loss of minus 14%, that might be an unfunded liability layer of $3 million. That doesn't mean your costs increase that much. That just means that's the amount that you would have to start paying back over 20-year period of time.

CalPERS uses really two anchors. One, this is sort of the mild recessionary case and then that two standard, the rare case they also include a a more extreme case, and they actually show these in the actual valuation itself. I assume 95% is really close to an industry standard. So what I end up showing on the next page, I believe I show a mild and severe, more severe case And you can see even with your new payment stream looking to finish up, your payment could increase under a mild recession at the peak cost. This is one year of bad results could cause your UAL payment to increase $200,000 under more extreme cases, 400,000. And again that's even if you're 100% fully funded because what CalPERS assumes is that if any underperformance in any one year they're going to turn around and send you a bill for that underperformance.

And so the risk mitigation while it's great that the city has made great funding progress towards its obligation Know that normal volatility will disrupt the course of your funding progress. And so at this point, I would recommend discontinuing any direct discretionary payments to CalPERS And set up a pension volatility reserve, whether it's held locally or you put it in a trust. But setting because of that, because we can't identify when markets will correct or when the city might incur some Unfavorable investment experience in order to protect.

The vital services to the community, I think it's in the city's best interest to set some money aside for that eventuality so that when pension costs unexpectedly spike you don't have to redo your budget all at the last minute. So you've got a bit of a provides the finance director a bit of some resources to say we can continue with our normal plan and dip into our reserve And this is the illustration of a $3 million loss.

And you can see payments can range from as little as $75,000 a year under their most accommodating schedule which includes a fair amount actually significant amount of negative amortization. You can see your balance continues to climb or if you were to pay that off under a level dollar payment like a typical mortgage, you can see that your balance is coming down.

And so in terms of a reserve framework I'd recommend targeting for a minimum of about $800,000 to allow the city to provide three to five years worth of runway for that unexpected increase And so that is something that I believe the finance director will be coming back. The recommendation is to continue with what otherwise would be additional discretionary payments, redirect them to a reserve and so you will continue to have that buffer as additional budget flexibility. So when those unexpected losses We're going to start with questions for Mr. M

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2:04 – 2:1515 turns

UnidentifiedUnidentified speaker 5Proposed2:04:17

Thank

ElectedDavid SilvaMayorProposed · by role2:04:18

you. Good afternoon, everyone. Is this something that you could over commit funding for this? You know, like sometimes how it's like you can almost be what is it right retirement rich but like present day poor type of thing. With these suggestions going on since we're not in a situation that like with Santa Barbara is currently dealing with or what we're caring with should we be more aggressive with our liquidity to try and put aside money to the thing or would you suggest it's just trying to get the basis of should we try and go all in on this try and solve it or do you think I'm going to turn it back over to you, Mr. Buellton.

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UnidentifiedUnidentified speaker 17Proposed2:05:44

And, you know, markets continue to do well. Then then you can draw that down and that reserve at any time to make your normal cost payments. So while a reserve I agree wholeheartedly cities need to have multiple demands on their resources. Putting it in a reserve isn't that restrictive because you can always draw down that reserve but to make your normal cost payments, but it's prudent so that you're not disrupted when there is market volatility That's inevitably at some point down the road.

So I believe the city was considering continuing on a practice of about $175,000 a year which seems like you would reach your reserve goals within around five years and that seems to me like a moderate approach but I'm going to turn it back over to you, Mr. Buellton.

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UnidentifiedUnidentified speaker 16Proposed2:07:22

No, but to well to facilitate your discussion is you know we're recommending setting money aside to a reserve so are. You know the direction we kind of want is. Is if council wants us to do an in house reserve? The only difference is if we said a reserve. It can be strictly for pension or a normal reserve, so we can drive for any other operational costs or put it into the 1 section 115 trust.

So that's kind of something that we want Council to direct us is what options do you want us to bring back and then at that time Council can decide what route to take. And then we can determine an amount at that meeting as well.

ElectedDavid SilvaMayorProposed · by role2:08:08

I'm going to jump ahead of council questions for you, but could you explain one more time the 115 trust?

UnidentifiedUnidentified speaker 16Proposed2:08:14

Dan, if you want to please explain the 115 trust.

UnidentifiedUnidentified speaker 17Proposed2:08:17

Sure so 115 just refers to a section of the IRS code that says cities can earn money without actually paying taxes on them but it doesn't seem like... The code is It doesn't seem relevant to what the plan really is. What it is, is a pension or OPEB trust that allows cities when you have a long term liability to set in to put money into a reserve that can You can invest more aggressively. It's appropriate that if you have a long-term liability to be able to invest partially, not just in fixed income instruments but some combination of fixed income and equities.

And that's one of the only exceptions where cities are allowed to invest in equities outside of the normal government code. But it's not that restrictive in that, again you can draw even though it's a pension trust you can readily draw to make your regular annual payments at any time. So even though it's technically restricted for pension purposes, it can be used essentially to make your normal costs payments and then you could so it's fairly fungible and it's not that restrictive.

Thank you.

UnidentifiedUnidentified speaker 14Proposed2:10:07

I'm sorry, can I jump in there? Is that okay? Yeah. Mr. M., you said that the 115 Trust is a pension funding trust that allows you to invest in let's just say other assets that we wouldn't otherwise be able to invest in. I'm gonna phrase that as more aggressively than otherwise. Then you said we can only use it to fund the pension But then pay normal payments. So can you explain that a little bit more, please?

UnidentifiedUnidentified speaker 17Proposed2:10:41

Sure. So I apologize that it was probably oddly worded but so technically a 115 trust can only be used for either pension or retiree medical costs and it's one or the other. You would set up a specific trust Because both are long-term liabilities, local governments are allowed to invest in a manner that's appropriate for those long-term liabilities. And that's why you're allowed to invest in a mix of fixed income and equities.

So once you put the money into a pension trust, while it's somewhat restrictive at least that it can only be used for pension costs, that is true. It's somewhat fungible because you're going to have ongoing pension costs so that if you needed budget relief down the road, you could use that trust to make your normal required contributions and redeploy that amount of budget for something else in the budget.

UnidentifiedUnidentified speaker 14Proposed2:12:22

So I'm just gonna ask this is probably a joint Mr. M and staff question, but what it sounds like you're saying is correct me where I'm wrong here. We currently have a fund that's managed to manage this unfunded liability. And it's doing well and your recommendation is to take the overflow and you invest that in one of these other three options, one of them being the 115 trust Which allows us to then have more flexibility with our other payments or the accrued liability for other budgetary purposes. Do I have that right?

UnidentifiedUnidentified speaker 17Proposed2:13:07

Yes, the distinction is that since you're so well funded at CalPERS is that If you either become overfunded at CalPERS, there's no way to get that money back.

UnidentifiedUnidentified speaker 8Proposed2:13:27

Can I jump?

UnidentifiedUnidentified speaker 17Proposed2:13:28

Yeah.

UnidentifiedUnidentified speaker 8Proposed2:13:28

OK, so I'm going to put it like how I would explain it at school. Like we have to pay for the retirement and this is part of the gap between what comes out of paychecks automatically and what gets deducted automatically and what we still have to pay. We have that account at CalPERS. That account is not something we have control over. What we're saying is, we've funneled so much extra money and extra payments into what we owe with CalPERS that we're getting. We are projected to get to the point where we are going to have given them more money than we need to because we will be considered overfunded. So if we get too close to that 100%, they're making interest and money off our money that we could be making. So what they're saying is, we're looking at several options one I think it's a good point.

One of the things we're trying to do is make sure that we don't put any more payments into CalPERS and just wait and see, two, put that money into a special account that the city can use and the city can earn We can make our own reserve at the city that we can do whatever we want with it, but it is earmarked for this. But if we got a wild hair and decide to build a new park, we could say take it from that and then we wouldn't have it.

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UnidentifiedUnidentified speaker 14Proposed2:14:46

So yes, makes sense. Yes. And so Mr M you were saying what I was asking though was that? You are saying that with the 115 trust I don't know if that's the right acronym.

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2:15 – 2:2118 turns

UnidentifiedUnidentified speaker 16Proposed2:15:19

Yeah, and the intent is for any year that this city say has a revenue loss and you still have to pay CalPERS. You can use that money from reserve to pay it so it's not affecting your cash flows because you already have the money in reserve.

ElectedDavid SilvaMayorProposed · by role2:15:36

Thank you. Thank you, we have received and filed the annual CalPERS pension funding update. We appreciate that. Two is the question of directing staff to discontinue making further ADPs to CalPERS at this time. So we as a council maybe just want to say do we want to keep throwing money into the CalPERS fund or do we want to explore this option which is what staff recommendation is? Explore

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UnidentifiedUnidentified speaker 3Proposed2:16:18

options.

ElectedDavid SilvaMayorProposed · by role2:16:19

Are we all good with it? We are directing staff to Two, it's done. Great job everyone. Three, direct that the previously contemplated $175,000 ADP be set aside for future pension volatility reserve rather than paid directly to CalPERS. So

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the next item is saying do we still want to be proactive in the $175,000 extra payments we're making and not just be like oh I just wanted to ask Chanel,

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UnidentifiedUnidentified speaker 16Proposed2:17:25

Yeah, I think that number is appropriate. It's something that we've been doing for the last three years and it's already embedded in the budget so I feel comfortable with that.

UnidentifiedUnidentified speaker 5Proposed2:17:34

Okay great thank you just wanted to clarify that.

ElectedDavid SilvaMayorProposed · by role2:17:36

Is everyone okay with us saying we would like to continue making a UAL or sorry is that phrase an ADP? Yes. For the UAL eventually but yes we're gonna take this $175,000 we're gonna keep investing it as a savings plan for our future UAL problem are we all good with that? Okay, we have consent there. So now we get to the one of... We want to talk about parameters for pension volatility reserve policy and all that other stuff. The specifics of it so we

UnidentifiedUnidentified speaker 2Proposed2:18:01

know

ElectedDavid SilvaMayorProposed · by role2:18:02

how we want to save it. And I'll just show my cards on the table. I think I would be more apt into thinking about it as much as we keep it in-house as possible. That was where I would lean from it unless you think that it's... I trust you though more like You get this. So

UnidentifiedUnidentified speaker 5Proposed2:18:17

I was going to say personally, I mean unrestricted unrestricted funds are like that's what we want because when we have if we don't put any limitations on how the money can be spent then we can choose to spend it how we need to spend it. So that's like would be my instead of even doing the trust or definitely obviously not with CalPERS but even the trust why we don' We're very fortunate that we are so well funded. So in my mind, there's no reason for us to restrict anything that we already have.

I agree. However, what

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UnidentifiedUnidentified speaker 1Proposed2:19:28

I'm not sure

UnidentifiedUnidentified speaker 14Proposed2:19:29

if that's the right way to put it. Is that? The 1 15 trust allows us to invest more aggressively and therefore have more money at our disposal, which we wouldn't have access to be as a trust but would have access to VR General Fund for funding this U A L is that right?

UnidentifiedUnidentified speaker 16Proposed2:19:48

Um let me see if I understand correctly so And if we do a separate reserve, it would be in our general fund and we can pull from there.

UnidentifiedUnidentified speaker 14Proposed2:20:06

But what I'm saying is that what I think Mr. M was saying is that you can invest more aggressively to assets that you don't have access to in your general fund in the 115. So if you do 115 investing, you can use that to find your UAL and instead of taking your general fund money which you can't invest as aggressively, you ca use that to do whatever funding you need to do for the UAL or no I'm

UnidentifiedUnidentified speaker 10Proposed2:20:31

sorry. You can use the money from the 1, 1, 5 to cover the costs either ADP or UAL regular payments thereby freeing up the general fund monies you might use to pay it otherwise and then use those funds to do whatever you like with it.

UnidentifiedUnidentified speaker 14Proposed2:20:47

So that seems to make the most sense. We need the awareness in finance to say okay we're going to fund it this way instead of that way We're going

UnidentifiedUnidentified speaker 6Proposed2:20:57

to go ahead and put it in the general fund. Is that two different things? The decision to go into the 115 or put it in the general fund because it sounded like the 115 trust was restrictive and needs

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2:21 – 2:2625 turns

UnidentifiedUnidentified speaker 8Proposed2:21:20

You put it in the trust that you can only use for pensions and retiree medical or we make our own reserve, which we could do with it. However, we want whenever I

UnidentifiedUnidentified speaker 6Proposed2:21:31

would go towards our own reserve without restrictions.

ElectedDavid SilvaMayorProposed · by role2:21:34

Oh, and see, I always say I wouldn't want to preserve. I thought keeping it in house first but I would actually want restrictions on it and make it very. I have a question for you. I don't know if it's deliberate, which means more of

UnidentifiedUnidentified speaker 3Proposed2:21:44

a 115 because

ElectedDavid SilvaMayorProposed · by role2:21:44

all I know about is that the number one thing that screws up public agencies is this pension liability. Every single city, every public agency, how do you solve a problem like Maria? How do you solve this pension

UnidentifiedUnidentified speaker 6Proposed2:21:57

liability?

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UnidentifiedUnidentified speaker 8Proposed2:22:08

I'm not saying that we should be looking at future city councils or whatever, but if. There was any type of downturn or some other type of volatility they could take it from that and then we're looking at a situation where maybe we don't reach these projections and we now don't have that reserve so. Putting guardrails, I think protects future us.

UnidentifiedUnidentified speaker 14Proposed2:22:29

I have your question though, And I want staff to correct me

UnidentifiedUnidentified speaker 10Proposed2:22:38

Potentially

UnidentifiedUnidentified speaker 5Proposed2:22:39

right that

UnidentifiedUnidentified speaker 10Proposed2:22:40

was there's more risk associated with those more aggressive investments, but potentially for money.

UnidentifiedUnidentified speaker 14Proposed2:22:46

That's the idea. I mean like there's more risks and more aggressive profile we could invest in so 115 we get more money and we get more money not just for the pension funding Because what we can do is, we can say hey look our pension funding investment trust is going great. We don't need to take our money from our general fund as much. We can take less and use that money somewhere else.

UnidentifiedUnidentified speaker 10Proposed2:23:08

That's correct.

UnidentifiedUnidentified speaker 14Proposed2:23:09

So the 115 not only puts dedicated money towards pension funding which we need to do it also gives us more money for a general fund potentially. As a

ElectedDavid SilvaMayorProposed · by role2:23:18

risk-averse person that's the only thing I worry about I have a question. I don't know what you're talking about. It's just if you put into a more volatile high-risk, high reward. Do you want a savings account? Do you want to fund that is more exposed to economic downturn when we would be looking at this fund explicitly when there's economic downturn that could be hitting CalPERS?

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UnidentifiedUnidentified speaker 17Proposed2:23:48

Well, there are a couple of different providers but the agency can choose their risk tolerance to say we want something moderate or Very conservative to moderate, you know, moderately aggressive. So you'll have a variety to choose where your risk tolerance is. I mean

UnidentifiedUnidentified speaker 14Proposed2:24:18

like historically, I'm sure you've mapped this or tracked this right? Like how these funds do in comparison to just say CalPERS investment fund.

UnidentifiedUnidentified speaker 17Proposed2:24:28

Yeah, I mean they've you know in recent years have outperformed CalPERS but you know so is the S&P 500. So but it may not be a the S & P 500 may not be great public policy because I'm going to go ahead and get started. Well, it depends what the city has selected. If you chose to be more conservative than CalPERS then you're probably earning 5%. If you choose to be more aggressive there's the potential to outperform PERS.

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UnidentifiedUnidentified speaker 14Proposed2:25:20

And what do you recommend?

ElectedDavid SilvaMayorProposed · by role2:25:21

Well, I was going to say maybe we've done before because this is being brought back. We might be getting beyond what's from us now because now we're talking about investment strategies.

UnidentifiedUnidentified speaker 10Proposed2:25:35

We're looking for tonight is direction. Do we want to look at? And I don't think we necessarily need to bring back just one. No,

UnidentifiedUnidentified speaker 16Proposed2:25:43

we can bring. Yeah, we can bring back how section 105 trust looks like and then we can bring back the in-house.

UnidentifiedUnidentified speaker 10Proposed2:25:52

So you can compare them side by side and get a feel for what that might look like in different scenarios.

UnidentifiedUnidentified speaker 9Proposed2:26:00

Is everyone okay with

UnidentifiedUnidentified speaker 5Proposed2:26:00

that?

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2:26 – 2:3721 turns

ElectedDavid SilvaMayorProposed · by role2:26:22

So why don't we say, so we have the staff. We have direction for all the items and we look at bringing back what the investment strategy starting with 175,000 seed money would be for this both an in-house reserve option with restrictions do we want to or we can deal with that when it gets back first? Or then the 115 option we can just see what that kind of amortize out where possible ROI.

UnidentifiedUnidentified speaker 16Proposed2:26:44

Yeah I got the direction thank you

ElectedDavid SilvaMayorProposed · by role2:26:46

great. We're all good

UnidentifiedUnidentified speaker 3Proposed2:26:51

Good job.

UnidentifiedUnidentified speaker 10Proposed2:26:54

Don't go there, please. You're making me

ElectedDavid SilvaMayorProposed · by role2:26:57

nervous. I just remember looking at my own personal finance investments. Okay moving on. Thank you all and thank you Mr. M for your time tonight.

UnidentifiedUnidentified speaker 6Proposed2:27:07

Thank you.

ElectedDavid SilvaMayorProposed · by role2:27:09

What

UnidentifiedUnidentified speaker 6Proposed2:27:11

happened to our oh here we

UnidentifiedUnidentified speaker 10Proposed2:27:14

go okay

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UnidentifiedUnidentified speaker 14Proposed2:27:18

We are going to

UnidentifiedUnidentified speaker 10Proposed2:27:19

move on to item

The next item on our agenda is the consumer price index for urban wage earners and clerical workers.

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UnidentifiedUnidentified speaker 16Proposed2:27:50

Good evening, Mayor and members of the City Council. Tonight's item proposes a framework for annual COLAs as part of our annual budget process staff brings back a proposed COLA to be included in the new salary schedule Historically, we've looked at the consumer price index CPI. We've looked at the external market data from our surrounding cities, Santa Barbara County and Salas Obispo County and we've looked at our historic granted CPI or granted COLA based on the historic CPI Uh, so there's there's been some inconsistencies or 1 year. We'll look at the average data we'll look at the average CPI. So this proposed resolution gives us a. A pretty much a framework, um, a method of being consistent every year for the, which are cost of living adjustments.

So, what's the purpose of adopting this resolution? As I mentioned establish a consistent transparent policy for regular full time employees. And also the city manager as he's considered a full time employee and per his contract, he is eligible for. It also ensures that employee wages keep pace with inflation. And it supports long term financial planning because the proposal provides a range and, you know what your cap is which is easier to budget and forecast. Um, and it also supports employee retention and recruitment.

So again, I kind of just went over this but why is this resolution needed? Um, inflation steadily reduces the purchasing power and we live in a very high cost area. Without a formal policy that compensation becomes inconsistent and subjective as the cola can change every year. Since there's no current method again, annual decision making creates uncertainty. And there could be increased turnover and recruitment challenges.

And also built and relies solely on the cola for employee. Increased salary increases, we do not have any union so there's no union negotiations like our neighboring cities. So there is risk of falling behind the original compensation levels. I have a note that these predictable costs matter. A defined range of 0% to 5% as being proposed enables accurate forecasting, supports the long-term planning and prevents reactive larger adjustments or prevents the larger adjustments later in the future when we're trying to catch up to market.

So, the proposed method is the consumer price. Index for urban wage earners and clerical workers known as the CPI W. so the CPI that W is a nationally recognized inflation measure. It reflects the real cost of housing food transportation and healthcare. The annual CPI that we're looking at is for the calendar year. 2025 your attachment 1 has a history of all the annual CPIs in the last 10 years as of this, the end of December at 2025. The annual CPI was 3.2%.

So, the proposed also identifies the region that we would be looking at the. So, we mentioned that the CPI W, we are looking at is the L. A long beach and a high region. So why are we using that region? The. That region encompasses a lot of South California. Uh, there is no Santa Barbara County specific data. The Bureau of Labor statistics puts out general CPI we're on the West so they have the West was just the general area that goes all the way up the Pacific Coast and then they house a specific regions and I noted on the map there that Santa Barbara County as well as Alyssa Bisball County is included.

in that L.A., Long Beach, Anaheim region and it is also the most relevant data set and our neighboring cities also use that region for their CPI And then looking at attachment 2 and 3, the CPI average since the cities incorporation was 2.60%. While they granted cola for regular full time employees is 2.42% so the cola granted in the past has been slightly below the average CPI.

Also, staff conducted a city of our 14 neighboring cities in the Santa Barbara and San Luis Obispo County. The overall average COLA granted was 3.54%. Santa Barbara County average was the highest at 4.86% and San Luis Obispo County 3.21%. Uh, I also noted that some of these cities provide. Provided provided market equity adjustments so what that shows in addition to had a market equity adjustment which would only put us below market.

Is it since they're increasing the average? So. We're looking at the cola to support our workforce stability again competition is. In a high cost labor market, we have high housing, high living expenses city employees primarily rely on cola to maintain competitive and retain their staff. We also have the potential to fall behind the regional pay, which could increase employee turnover.

Higher recruitment and training costs, loss of experience and institutional knowledge if some of our people leave or staff leaves. And also maintaining competitive wages supports the workforce stability operational continuity and consistent service delivery to that community. Um, also there is fiscal responsibility. Uh, building a safeguard ensures fiscal responsibility the cap at 5% protects against high inflation years and also that defined cola range supports predictable personnel cost allows for multi year forecasting and allows for a balanced sustainable budget.

The fiscal impact for fiscal year 2627, assuming the 3.2% COLA is $103,816. That total cost is broken down between the general and wastewater fund. So for the general funds about $74,000 budget impact wastewater 16,350 and water 13,520. So, staff with that staff recommends adopting resolution number twenty six dash ten. It establishes an annual cola tied to the for Los Angeles Long Beach Anaheim area.

The should be applied as follows if is 0%, but less than 5% cola. The cola is the actual CPIW. If CPIW is less than 0%. Cola is 0%. And if CPIW is more than 5%, then the COLA is limited to 5%. The resolution also calls for an automatic annual COLA. And also state city council discretion for override, which means that any given year. Uh, at any of the given year, a city council can decide not to grant that specific cola.

Depending on our financial situation. And also it calls for the COLA to be reflected in the annual salary schedule and submitted for approval annually. And it also recommends the implementation date of July 1st, 2026 and beginning every fiscal year thereafter. And I am now open to answer any questions City Council may have.

ElectedDavid SilvaMayorProposed · by role2:36:42

And before we do questions is there any public comment? All right. We'll bring it back to Council first for questions of staff. Council Member Lewis, we'll start with you. Any questions for staff? No questions.

UnidentifiedUnidentified speaker 9Proposed2:36:53

Council

UnidentifiedUnidentified speaker 6Proposed2:36:54

Member

ElectedDavid SilvaMayorProposed · by role2:36:54

Sanchez any

UnidentifiedUnidentified speaker 6Proposed2:36:54

questions for staff? I just said that it helps in your budgeting but you don't know what the cost of living is.

UnidentifiedUnidentified speaker 16Proposed2:37:02

So what it allows is I can always budget at the high 5% so CPI becomes lower than our budget then our budget can absorb it.

UnidentifiedUnidentified speaker 9Proposed2:37:12

Any questions Council Member Hornick? Thank you.

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2:37 – 2:4238 turns

UnidentifiedUnidentified speaker 8Proposed2:37:29

I like it for a myriad of

UnidentifiedUnidentified speaker 9Proposed2:37:57

No, thank you. Council Member Hornick? I move to approve.

UnidentifiedCity ClerkProposed · by role2:38:01

Second. Okay. Sorry.

ElectedDavid SilvaMayorProposed · by role2:38:03

All

UnidentifiedCity ClerkProposed · by role2:38:03

right

ElectedDavid SilvaMayorProposed · by role2:38:04

sounds good we've got a first and a second.

UnidentifiedCity ClerkProposed · by role2:38:06

We have a motion?

ElectedDavid SilvaMayorProposed · by role2:38:07

Yeah we got a motion and a second.

Roll-call vote Passed 5–0 motion and a second.
Show transcript
Council Member Hornick? Aye. Council Member Lewis? Aye. Council Member Sanchez? Aye Vice Mayor Mead? Aye And Mayor Soto? Aye

So many inspirational things to say. Great, thank you. The world will never know what we thought. Thank you for taking the time to do that. Appreciate it.

UnidentifiedUnidentified speaker 5Proposed2:38:28

I really liked the survey of all the surrounding areas so thank you for taking the time today. It gave me a lot of context to what that was all about so thank you for that as well.

ElectedDavid SilvaMayorProposed · by role2:38:38

Moving right along. City Manager's Report.

UnidentifiedUnidentified speaker 10Proposed2:38:40

Thank you, Mr. Mayor and Members of Council. A couple items tonight I would like to remind everyone that this coming Wednesday May 20th at the San Ysidro Valley Marriott here in Buellton at 10 o'clock a.m., I believe is our State of the City. The State of the City event is ticketed however when the mayor is scheduled to give the State of the City address about 11 o'clock The doors will be open to the public and anyone ticketed or not will be invited into here in the state of the city.

And then aside from that, we have kind of a unique, well not unique but a first time event coming up here. Our planning commission has for the past year and a half or so been designated as the city's tree advisory board. We have an item going to the planning commission which will sit as the tree advisory board next Thursday, May 21st. And the purpose of that is to discuss the planting of trees at the 100 Hill School site and we will have that discussion at that point You're behind.

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UnidentifiedUnidentified speaker 14Proposed2:40:05

I know, well first of all you said that there's a ticketed event but if you show up you can just come in?

UnidentifiedUnidentified speaker 10Proposed2:40:10

The ticketed event starts at 10 o'clock that is a breakfast and the business meeting of the Chamber of

UnidentifiedUnidentified speaker 14Proposed2:40:18

Commerce. So if you come at 11 you miss the

UnidentifiedUnidentified speaker 10Proposed2:40:19

breakfast. If

UnidentifiedUnidentified speaker 14Proposed2:40:20

you

UnidentifiedUnidentified speaker 10Proposed2:40:20

come at 11, you don't get breakfast and you don''t see the meeting of the Chamber of Commerce but for the Brown Act we open the doors and allow the public in to hear the mayor speak.

UnidentifiedUnidentified speaker 14Proposed2:40:28

Thank you

UnidentifiedUnidentified speaker 10Proposed2:40:30

I'm sorry. It's it starts at 930. I

UnidentifiedUnidentified speaker 5Proposed2:40:33

think they're starting breakfast and then maybe the programming starts starts at 10, right? Okay, but

UnidentifiedUnidentified speaker 14Proposed2:40:38

if you come in 11, you can hear state of the city for free.

UnidentifiedUnidentified speaker 10Proposed2:40:41

Yeah, a little earlier in case business ends a little earlier. They will open the doors when it's time for the for the

UnidentifiedUnidentified speaker 14Proposed2:40:47

matter scenario.

UnidentifiedUnidentified speaker 10Proposed2:40:48

Yes, at the mayoral

UnidentifiedUnidentified speaker 14Proposed2:40:50

request to do this. This is

UnidentifiedUnidentified speaker 10Proposed2:40:54

not a city event, this is a chamber event. And we can work with them in the future and see what can be done but a lot of it is driven by cost and they need to make sure that the ticket costs could support the event and that it's not so high

ElectedDavid SilvaMayorProposed · by role2:41:14

And a lot of cities will do a ticketed option through the chamber and then a free option evening community one. And we've talked with other cities about that, too.

UnidentifiedUnidentified speaker 14Proposed2:41:21

Yeah.

ElectedDavid SilvaMayorProposed · by role2:41:21

What's that? You talk to other cities about having one in the

UnidentifiedUnidentified speaker 14Proposed2:41:23

evening?

ElectedDavid SilvaMayorProposed · by role2:41:24

Well, we've seen like just how do you do it? So we went to the Goleta one and saw how it worked, too so yeah, it's like you basically do like a chamber event that's catered and formal and then you have like a ticket and then you have like a couple

UnidentifiedUnidentified speaker 5Proposed2:41:35

days later. It's more like a community event that's open to the public that you basically hear the same information but it's not for everyone.

UnidentifiedUnidentified speaker 14Proposed2:41:43

So for the tree one, I thought you said in your report the trees were already in the ground.

UnidentifiedUnidentified speaker 10Proposed2:41:48

Yes there was a bit of some miscommunication with the landscape consultant who was to go or contractor who was to go out and put the trees in the ground we had asked that that be held off. Word got out The person who acquired the trees but didn't get to the contractor, I think they just came in and had some extra hours one day and came in and dropped it on the ground. Nevertheless, should the Planning Commission come back with a recommendation that those trees should not be there we will have them removed.

UnidentifiedUnidentified speaker 14Proposed2:42:21

Got it.

UnidentifiedUnidentified speaker 10Proposed2:42:24

Okay.

ElectedDavid SilvaMayorProposed · by role2:42:26

Anything else? No, I believe that will conclude my report. Thank you. And then we'll move to our City Attorney.

2:42 – 2:422 turns

UnidentifiedUnidentified speaker 12Proposed2:42:35

Thank you, Mr. Mayor. We do have two items for closed session. The first is potential initiation of litigation and the second is conference with legal counsel for anticipated litigation.

ElectedDavid SilvaMayorProposed · by role2:42:47

And we will not be coming back into open session right? We will just report out afterwards? Correct. Okay perfect well then we will adjourn our Sarah meeting at 8 40 p.m and we'll move into close oh yeah and we'll move to closed