City Council — July 21, 2026

you Thank you.

Thank you.

Let's see, next we'll have the introduction of our Spanish interpreters

Good evening I have a brief bilingual announcement. So just letting you know that we are providing simultaneous interpretation between Spanish and English for today's meeting. So if you'd like to follow along in Spanish, if you'd like to participate in Spanish I have some listening devices available for you to do so. You can raise your hand if you'd like one or you can come up to me. I'll be in the room next door for the entirety of the meeting. So with that thank you. Gracias.

Great thank you. Let's see next. Do we have a report from closed session?

Thank you, Mayor Pro Tem. So for the three items read into the record earlier this evening for a closed session there is no reportable action.

Thank you. Let's see next is our public forum. This is an opportunity for members of the public for you to make comment on any item that's not on tonight's agenda. Do we have any speaker slips for public forum?

Thank you, Mayor Pro Tempore-Smith. I've not received any speaker slips. If any attendees on the Zoom webinar wish to make public comments please use the raised hand feature and I will call upon you. And Mayor Pro Tem, I'm seeing none.

Okay we'll go ahead and close our public forum. Do we have any amendments or adjustments to tonight's agenda?

No mayor, Madam Mayor Pro Temp. We're going to start with kind of a conclusion to our participation in the World Cup this year. So with that, I'll invite our Assistant City Manager to come up and make a few remarks

Good evening, Madam Mayor Pro Tem and Council. As you know the last match was this weekend for the finals and although Team Austria did not make it to the finals they did show up and showed out. They made it to the knockout round and unfortunately weren't able to get past Spain who is the eventual champions but they did have a great stay while they were here I was fortunate Get to know some of the coaches and met a couple of the players. Very kind, very thoughtful and they just were very impressed and actually very kind of tickled that Goleta showed so much support including the banners.

The community training event, and just in general they felt like they got a really warm reception. And they were very inspired to come back again whether it's independently or as a team in the future. In getting to know some of the coaches I did ask for a solid, I asked for a favor and I asked them if they would be willing to sign a team jersey which they did and a Live Work Play soccer ball And they did as well. So I just got that put together. Hopefully, I'll talk to Debra about maybe putting it in the hall somewhere just kind of a nice little like you know historical reminder of their presence here and we just told him we wish them well and hopefully you know they can come back again so that's all bring them up Jaime we gotta see him yeah It's a 2XL because I bought it for me, so it barely fits in the frame.

But they signed this as an official jersey and on the back you can't see it but it does say Goodland. They thought that was pretty funny. The last one is a soccer ball with the same signature. So that was cool. They also left some swag, so I put that in the case and we'll figure out where to put it at City Hall so people can come check it out.

Great, thank you. Yeah I do wanna just, you know, I think... You know, I know this opportunity came up rather sort of unexpectedly. It wasn't something that as a city we were initially planning to address so I wanted to thank City staff for all of the hard work and working on this in such a relatively short time frame

Yeah, I'd be remiss not to say thanks to obviously Mr. Nisbet for the initial talks with all the different parties but also too to Blake Markham who is our kind of boots on the ground liaison with Visit Santa Barbara UCSB and others so he's the one that helped come up with the kind of creative ideas on watch parties as well as Shannon Kern so just want to make sure he got some credit for that as well

Let's see.

Oh, I was just going to say you know in four years if we have the good fortune to do this again perhaps we can get jerseys for our superfan Mayor Pro Tem and Council Member Reyes-Martin. I know they were especially enthused for this year's World Cup and there's also other World Cups on the horizon that aren't four years away and perhaps others want to talk about that.

Yeah, I just wanted to also I'm glad we have this opportunity to again thank staff and everyone who played a role in the ongoing partnership but also the community watch parties were so wonderful. I can't tell you how many folks I heard from of how appreciative they were That there was a real family friendly kind of casual way to experience the World Cup and so many young kids who got to experience it maybe for the first time that they really remember.

And have now become super fans and had a great time kind of following all the different teams, so what a great community. A community event and a way to bring people together. And I agree with Council Member Kiriakou, the Women's World Cup is next summer and Team USA is really good. And I think that we have another opportunity to kind of keep this going and keep up the love for soccer and community. So thank you to everyone who participated in all the community events.

Maybe next time Jaime can get like seven or eight jerseys.

And then just a couple more announcements, Mayor Pro Tem. Our next community event is coming up Saturday August 15th. That's the Dam Dinner. So just to plug for that we hope you can join us for Goleta's Dam Dinner at the scenic Lake Los Caneros. From 4 o'clock to 7 o'clock, bring your own picnic dinner and beverages or purchase food there. There is that opportunity to purchase from a food truck. Enjoy live bluegrass music courtesy of the Salt Martians. Very family-friendly event. There'll be face painters, Kona ice and the Goleta Valley book van will be there as well.

New this year, Cycling Without Age will be at the event to give a ride to anyone who might need it. And there will be a bike valet. So for more information, see the city's website again August 15th four o'clock to seven o'clock the damn dinner and then a reminder that next month there is no council meeting August 4th so after the meeting tonight the next council meeting will be August 18th.

That is it.

Thank you for that update let's see next we have our consent calendar

Thank you, Mayor Pro Tem. That takes us to item A1, approval of the City Council meeting minutes of June 16th, 2026. Item A2, acceptance of the May 2026 check register. A3, acceptance of the May 2026 investment transaction report. A4, acceptance of the June 2026 investment transaction report. A5, authorization to purchase new restroom building for Stowe Grove Park.

A6, amendments to the provisions of library management services between the city of Goleta and the cities of Buelton and Solvang amending staffing positions. A7, proposed capital improvement program grant opportunities. A8, public works general services and professional services amendments with SCA of California LLC, Dewberry Engineers Inc., and budget appropriation.

Galeta Community Center Skylight Project, excuse me. Reject all bids and authorize new notice inviting bids in budget transfer from fund 217 to CIP number 9127. And item A10, resolution approving execution of grant funds from the California Ocean Protection Council through the Senate Bill 1 Sea Level Rise Adaptation Grant Program.

Thank you. Do council members have any

items that they'd like to pull?

Council Member Reyes-Martin.

Thank you, I would like to pull A7 and A10 just for a quick comment.

Anything else from others? No? Okay.

We'll start with A7 and A10. So, A7 is the Proposed Capital Improvement Program Grant Opportunities and I really just wanted to commend staff for being so diligent in pursuing these grant opportunities. Was really excited to see this work. I think it's great to give some daylight to it so that you know the public also sees how diligent their city staff is in pursuing These opportunities to help fund some really important projects. I hope that you know maybe the public doesn't always go through everything that's in the consent agenda but if you do look at this item, the proposed applications could include some projects that are really a lot of them focused on school locations high visibility crosswalks South La Paterra bicycle and pedestrian improvements A lot of projects that I know I've heard a lot of interest about and support for, so I'm just really glad that we're pursuing this.

And good luck! I know we've had good luck and so I hope that continues. And then on A10, again just wanted to highlight this. It's really a phenomenal achievement and I'm glad that Ms. Murray has joined us online but also for the public this is a $550,000 grant to help support our sea level rise vulnerability analysis and adaptation plan Another really just phenomenal opportunity for us as a city and a really significant grant. So thank you to staff for pursuing this, and congratulations on getting these funds!

And I don't know if Ms. Murray since you're here if there's anything you want to say about it?

The only thing I would add is that, you know, this will be a multi-year project and we anticipate having a lot of public involvement and workshops and great end products that'll help our city be more prepared in the face of climate change and be more resilient and adaptable. So thank you for your support Council.

Great, thank you. That's all I had. Council

Member Iacobo?

I just wanted to add that the timing of this is really important because we're also in the middle of our local coastal plan, developing that for the first time. So this is an incredibly well-timed grant and an incredibly well-timed effort. And the other thing I want to say, I represent the city on BEACON which is a regional board that works on issues that affect our coastline and beaches.

And we were just talking on Friday about Santa Barbara's planning effort, the City of Santa Barbara's planning effort towards their own sea level adaptation plan. And they're pretty far along in their process. They've been doing a lot of stakeholder meetings. Sea level rise can understandably be a cause for great concern But I don't want to lose the lesson, which is that there's a lot of opportunity that can be created if you do these kinds of plans the right way in terms of being able to reimagine infrastructure, create new opportunities for public access, bike paths, walking paths. There's a lot of good things that can come out of a C plan So thank you to everyone that's working on this.

Any other comments from Council? Let's see, do we have any public comment for items A7 or A10?

Thank you Mayor Pro Tem. If any public members wish to make public comment on the consent calendar please use the raised hand feature and I will call upon you. And Mayor Pro Tem, I'm seeing none.

Okay. All right, let's see. Can we go ahead and include all items in the consent motion?

Correct, Mayor Pro Tem.

Wonderful. Do we have a motion on the consent calendar? Okay. We have a motion for approval. Do I have a second? I'll second. And we have second and we'll have a roll call vote.

yes thank you that's Item B1 Ocean Nails and Spa Business Recognition Award

Thank you, well we have a special presentation this evening. I understand we'll have let's see a brief update from our staff first and then a presentation by Councilmember Reyes-Martin so we'll just wait a moment here while our staff presentation gets loaded

Thank you Council, Mayor Pro Tem and council members. My name is Shannon Kern assistant to the City Manager and I will just be introducing this item while we deal with our technical issues. So every Every quarter, we present a business recognition to a business in the city of Goleta. We started this a couple years ago when the City Council approved the guidelines and so just a little bit about the program it is intended to highlight exceptional Goleta businesses for their notable achievements and unique contributions to the community there's a couple different factors that different businesses can be nominated for And this quarter, which is for quarter four of fiscal year 25-26 we will be recognizing Ocean Nails and Spa.

So you'll see a couple photos on the slide here. And so just a little bit about Ocean Nails and Spa they're being selected for recognition in honor of its status as a woman owned business and it's long standing presence in the city of Goleta Kathy and Hai Lee have served the Goleta community for 17 years, providing consistent and high-quality nail service to local residents. We do encourage any businesses or people to nominate other businesses. We try to do this four times a year.

And it's open to, you can self-nominate. You know, you can come from anyone and they are accepted on a rolling basis so we keep the as more come in Use that for the next recognition next quarter. And so with that, I think I'll pass it off to Council Member Reyes-Martin who will be presenting the certificate. So if we could have the business owners come up and accept the award?

Yeah no, that's okay. This is exciting.

It's so nice to

meet you! Well, I'm so proud to get to present you with this recognition. And I just wanted to add that not only are you a woman owned business, but you're a family business and you give so much to the community. I'm a Kellogg parent and I know that you've always supported the PTA at Kellogg and I'm sure you support other wonderful community causes as well. So thank you so much and I'm so proud to get to present this Business Recognition Award to Ocean Nails & Spa, and as was mentioned for your success as a woman-owned business and longevity in the city awarded on this 21st day of July 2026. Congratulations!

We'll do a few photos. Wonderful. Thank you, thank you so much for being oh yes please please just make sure your microphone is on

hello Good evening Mayor Pro Tem and the council's members. We just want to say thank you, the city manager office staff, council members and mayor and the greater Santa Barbara Hispanic Chamber of Commerce and Santa Barbara South Court Chamber of Commerce for this recognition we truly are honored This recognition model that we can put into work, not just because of ourselves but because our dedicated team of staff and it reflects the trust and support from our local community. And this recognition motivates us to keep raising the bar not for just ourselves but for the team and organization that we are proud to be a part of.

And thank you again for this honor, and we are grateful and excited for what we can achieve together. And we're looking forward to continue to demonstrate excellence in both service delivery and community contribution in many more years. Thank you very much.

Thank you so much for being here and on behalf of Mayor Paula Perotti, I know she wanted to be here this evening. So I will send my congratulations to you on her behalf. Okay thank you so much. Okay

Thank You mayor Pro Tem that is item C1 public hearing for a street lighting benefit assessment for fiscal year 2026-2027

Okay, thank you. So this is a public hearing and so our process here is to typically let's see begin with a staff presentation. We'll then take council questions if we have any then any public comment on the item. If there's any staff responses or more council questions Then we'll close the public testimony, we'll go into deliberation and close the public hearing and make our votes in deliberations from there.

So let's see I understand we have some of our finance staff here this evening to present the item. And they'll get their presentation loaded and ready to go.

Yeah, thank you. So good evening Council. I'm gonna actually turn it over to my colleague here Tony Gonzalez our accounting manager who's going to give a brief update here on the Goleta street lighting benefit assessment for this upcoming fiscal year.

Good evening. Today we'll be presenting two direct charges, the first one up tonight is the Goleta Street Lighting Benefit Assessment for 26-27. A little background, the assessment was created in 1990 to help service the County Service Area 3 to help fund the operation maintenance and servicing of the street lights. We took it over in 2002 upon city incorporation.

A notice of public hearing does go out preceding today, with this report is also an engineering report that describes the services provided as well as making the statement that the proceeds do not exceed the benefit. And this is along with the next item to put direct charges on the 26-27 tax bill. So when you see property taxes, there's all those other charges below that. That's what this is.

So a company will be a resolution to establish the assessment itself. A little quick review on the math, the benefit factor Pre-parcel, there's a benefit factor per category type of land use that is essentially multiplied by $24. So here's just a brief overview when you multiply the rate times the parcel type. You can see from last year it went from 311,000 to 310.

The underlying mathematics is if the parcel Council members, thank you for joining us today.

I see none. Do we have any public comment?

Thank you, Mayor Pro Tem. I've not received any speaker slips and if any attendees on the Zoom webinar wish to make public comment please use the raised hand feature and I will call upon you. Mayor Pro Tem, I'm seeing none.

Okay. Let's see if there is no other comments, we'll go ahead and close the public testimony portion of the hearing and then we'll move into Council deliberations. Do we have any motions or comments from Council?

I don't have any further comments but I'm happy to make the motion unless there are any other questions for me. Then I move that we A, receive and file the final engineer's report for street lighting benefit assessment district fiscal year 2026-27. And B adopt resolution number 26 next in line entitled a resolution of the City Council of the city of Goleta California establishing an assessment charge for the city of Goleta Street Lighting Benefit Assessment for fiscal year 2026 27 And C, authorize the City Manager to enter into an agreement with the County of Santa Barbara Office of the Auditor-Controller to place direct charges on the 2026-27 secured tax bills.

Thank you do I have a second?

I'll second.

Okay motion and a second we'll do a roll call vote of Council

Yes thank you that is Item C2 Public Hearing To Establish The Tax Rate For Goleta Library Special Tax for Fiscal Year 2026-2027

Okay, great. And so this is also a public hearing so we'll undergo the same format in terms of our staff report, public comment and then council deliberations and that same process. So we will start with our staff report.

Hello again. Today this one is the library special tax rate that we'll be discussing. Thank you very much. But a slight difference compared to the previous item is this one, there is an adjustment based on a consumer price index 3.2%. And this is the same percentage as we had seen when we took the user fees in April. So we're using the same percentage. Notice of public hearing also went out as well. These would be on the same agreement as with the streetlight assessment and this resolution would be to establish the new tax rates, as opposed to the street light which is essentially the same tax rate.

The math in this case, if we visualize a 3.2% taking the same parcels you can see the change in the various land use rate types. In this case there is typically a noticeable increase, in this case from $395,000 to $407,000. Primarily it's the 3. 2%, but again factor in minor changes because of the land use changes or however parcels may change. And with its own benefit factor, that's what influences the difference in each parcel.

And similarly there is just a resolution to enter into an agreement and establish the tax rate.

Great thank you for that report do we have any council questions? I see none let's see do we have any comment public comments

Thank you, Mayor Pro Tem. I don't have any speaker slips and if any attendees wish to make public comment on this item please use the raised hand feature and I will call upon you. Mayor Pro Tem, I'm seeing none.

Okay thank you. Any other questions or any other comments? Okay, we will go ahead and close the public testimony portion of the hearing. We'll move to deliberations. Do we have any deliberations or motions?

Happy to make a motion if there's no deliberations.

Please.

I'll move that we adopt resolution number 26 next in line entitled A Resolution Of The City Council Of The City Of Goleta California Establishing The Goleta Library Special Parcel Tax Rates For Fiscal Year 2026-2027 and authorize the City Manager to enter an agreement with the County of Santa Barbara Office of the Auditor-Controller, to place direct charges on the 2026-2027 Secured Tax Bills.

Do I have a second? I'll second. Okay we'll do a roll call vote at the Council.

Yes thank you that is item C3, 2026 development impact fee program update.

Great, thank you. So this is another public hearing. So once again we will have a staff presentation. We will then go to council questions. Following the council questions we will take public speakers testimony and comments Then we'll do follow-up to see if there's any more staff responses, council questions. We'll then close the public testimony and move into deliberations and vote from there.

So let's see, we have a large group here with us today for this item. Ms. Buolna, would you like to start us off?

Mayor Pro Tem Smith. I think we need maybe a minute or two to set up the presentation. Oh, yes. Thank you.

And Mayor Pro Tem, just to make one note on the record as well, this is a continued public hearing from the May 19th meeting so at that time the council had directed it to come back tonight And it remains open from that meeting.

Yes, thank you for that clarification.

We can go ahead and get started if everyone's ready.

Let's go!

Good evening Madam Mayor, Pro Tem and City Council. Tonight Public Works is presenting the 2026 Development Impact Fee Program Update Report and Proposed Development Impact Fees or DIF. With that I would like to introduce the team that will be walking you through the DIF program update. Myself Nina Buolna your Public Works Director Bob Spencer and Carlos Villarreal with Urban Economics Jim Dankowicz With DKS and Gerald Kamadi, our contract project manager.

As a reminder, this item was continued from May 19th, 2026 City Council meeting. Following the continuance, the city republished notice of the proposed fee update on June 18th, 2026 and June 25th, 2026 consistent with AB 602 public review requirements. The revised nexus study and supporting documents have been available on the city's website since June 18, 2026.

The NEXUS study establishes the maximum justified amounts. The City Council may adopt those fees or lower fees as a matter of policy. Under Municipal Code Section 17.70.070, the City Council may also revise the categories of beneficial projects eligible for development impact fee reductions or waivers. Any reductions in the adopted fees or expansion of fee reductions and waivers would reduce development impact fee revenue. Any resulting funding needs would need to be addressed through other available funding sources subject to future City Council appropriation.

Staff recommends adopting the transportation fee and library fee as presented in the NEXUS study. The transportation fee is based on a defined list of transportation improvements with each project assigned a growth-related share through the NEXUS study methodology. The maximum justified library fee is already lower than the city's current adopted library fee. If City Council elects to reduce development impact fees as a matter of policy, staff recommends maintaining the transportation fee and library fee as the amounts presented in the NEXUS study.

Okay. The City's Development Impact Fee Program was established at incorporation using the County's Nexus Study. In 2019, the city adopted its own Nexus Study and Development Impact Fee Ordinance. Development impact fees are authorized under the Mitigation Fee Act and ensure new development pays its proportionate share of public facilities needed to serve growth The fees apply to new residential and commercial development. The City currently collects the development fees as you can see laid out in this slide.

State law requires that each fee be supported by a nexus study demonstrating the relationship between the new development, the needs for public facilities and the cost of providing those facilities. Development impact fees have helped fund projects such as Johnny D Wallace Park, the San Jose Creek multi-use path project and Project Connect. The fire facility's fee is not included in this update and will be brought forward separately.

At this point I will turn the presentation over to Bob Spencer

Great. Thanks very much, Nina. Hope everybody can hear me okay? So what is a development impact fee? We reviewed this when the hearing was first initiated in June. Fees can only be used for capital facilities. You should think of it as a one-time charge and not a source of funding for ongoing operations or maintenance. It is also not a special tax or special assessment, or subject to Prop 218 approval requirements. Thanks.

So our job is to make sure that there's what's called an adequate nexus between the fee and new development paying the fee. That's to demonstrate that there's a need for the fee, number two, that they'll be benefits received by development from the use of fee revenue, and three, that there is rough proportionality between the amount of the fee charged on a development project and the share of a capital project that that fee would fund.

We've identified and documented these findings in the report along with identifying the purpose of the fee, and includes a CIP showing the use of fee revenue. So for all fees except transportation, the fees are based on a base year of 2024 I believe and build out land use projections for population employment. The fees are driven by the city's existing inventory of capital facilities from which we derive a level of service. So for all but the transportation fee, you can think of the maximum justified fee as a reflection of what we would need, what the city would need to charge if it wanted to continue expanding its facilities at the same ratio as they currently exist to new developments. So a simple example with expanding them at the same level Park acres per thousand.

Now that's a it's a policy decision on your part, whether to do that or not. And finally in addition we're showing the residential fee per square foot because of recent legislation requiring the fee to be imposed per square foot. The transportation fee, by contrast that my colleague Mr. Dankiewicz will review for you is based on an adopted level of service that comes out in the city's general plan circulation element And so that is why as Nina referred to, that's a specific project list designed to comply with or maintain the city's level of service as adopted in the general plan. So that.

You think of that in a different category as the other fees and why there's, according to staff recommendation, less flexibility because you want to complete that capital project list to achieve that level of service. Whereas for the other fees, there's flexibility in what sort of level of service the city wants to plan for in the future through its capital improvement program.

I think I turn it over to, oh no we got changes here since the council workshop in February. We have added a five year capital improvement plan to document more clearly where the fee revenues would be used. We've refined the transportation deficiency analysis, which Jim can expand upon. We've got average costs for roundabout and traffic signal locations. We've updated the library population and this results in the fee going down slightly because we're Acknowledging the fact that the library serves a broader area than just the city because it's part of the county library system.

We've also updated bike and ped facility inventories, and we've refined the allocation of one of the transportation projects, the Goleta Freeway Crossing, refined it by allocating costs between the transportation fee and the bike and ped fee. Next slide. Here we have growth projections. The residential growth is going to be concentrated in multifamily and townhome type of development, as opposed to single-family detached.

The nonresidential development will be the greatest increase will be an office in medical, as you can see in this chart. So, but overall about a 20-25% growth increment for the city from now. These are through build out. All right, Jim?

Sure. Mayor Pro Tem Smith, members of the council, Jim Damkosch at DKS and I'll be discussing the transportation portion of the fee update. And some of this may sound familiar, but there's six basic steps. Step one is that you need to update your baseline. What does that mean? That means traffic counts, making sure all the traffic conditions are current and empirically based. It also means updating your land use and in this case it's not only the city's land use but all your surrounding Neighboring jurisdictions as well. We did that through permit data and then also while you're doing that, you also want to update your growth and Bob just mentioned the growth for the city but we also do that for your neighboring jurisdictions as well. That growth comes in at step three but moving on to step two after we have the accounts and existing land use We identify existing deficiencies based on traffic that's out there today, based on existing development not future development.

So that establishes the baseline and make no mistake there are some facilities out there today that are not operating within your general plan level service standard Those are identified because the fair share calculation for those facilities are different from if the growth is the actual culprit of a deficiency in the future. So with that, we go to step three. That's when we use that future land use. We plug that into the travel demand model which provides a travel forecast for the future in that way we now can identify the future roadway deficiencies caused by future development and again, we base that on your general plan level of service standards that have been established In step five, we determine what improvements will remedy the future deficiencies and what can be effectively done for those existing deficiencies that future development make worse.

We can't fix the problem but we can fix the increment of new growth and the degradation of that level service based on that. And that gets into the fair share, and that's a very important step. What is the fair share to future development? That is the responsibility of the City of Goleta. We also look at what the fair share would be for your neighboring jurisdictions if they were required to pay which they are not but it's good information.

And then the final step is to update the traffic impact fee to establish the highest maximum fee so you can't go over that but you can certainly come under it. So why do we make updates? Well, there's legislative updates that we want to be kept up-to-date on. Nina mentioned one, AB602 which now requires residential uses to be expressed in square feet versus number of units.

It also changed the noticing requirements which we have addressed as part of this update SB 99 exempts ADUs, accessory dwelling units that are 750 feet in square footage or lower. So no fees are charged to them. ADUs that have more than 750 square feet are charged a nominal fee based on the relative number of, the amount of square footage relative to the single family dwelling unit they're attached to.

AB 358 is very new, and that's giving discounts to residential development that are within VMT-efficient zones or areas within the city. And there are specific criteria that determine that. AB 1600 which drives the, that's the Mitigation Fee Act requires eight year updates anyway to take into account changes in land use assumptions, analysis tools always get updated And then to address the change of infrastructure costs and inflation.

So in terms of the current fees, those are based on work that was done back in 2015 with the city traffic model. That was the last update for that. The update for the fees occurred in 2019. There's trip generation manual changes and addition changes and of course construction costs as they were back in 2019 which has changed. So what did we do? Again, citywide traffic counts that's occurred in 2024 over 100 intersections over 50 roadways all counted. This is a great resource not only for the city but for the development community because those counts get shared reducing their costs and other jurisdictions that would like to see that data it's always great to have real data.

We perform the travel model update up to a 2024 baseline We used base data on permit data from all the local jurisdictions and then also updated the land use forecast using specific plans. I want to start by saying thank you to all of That was done by M&S engineers, one of our partners on this. And then the fair share of the improvement cost in new development and that's a big step. Next slide.

So here is a map and there are 32 locations that were found to be deficient. 15 of those are existing deficiencies and 17 were future deficiencies and it's very important to keep those two separate. I will say there was roughly nine new deficiencies that were not identified back in 2019, and the rest were reconfirmed to be future or existing deficiencies from that prior analysis.

It's spread all over the city, which makes a lot of sense. We had another graphic that showed where the future residential development is going to be and it's indeed spread over the city so it's fairly even distribution of growth and the implications of that growth. So in terms of fair share, this is very important. So there's three scenarios that can happen. Scenario A, that is a location where the blue bar represents existing or traffic being generated by existing development.

And so that's really not at play. That's already here, you can't charge fees to existing development. The green bar is the increment of traffic associated with new development and in this case when you combine existing plus new there's not enough trips to generate a problem. So any facility that falls under scenario A doesn't even show up in this. It's excluded it's not part of the issue Scenario B is an example where the blue is existing trips and from existing growth, but the facility has not exceeded the level of service standard yet.

But when you add the increment of new trips from new development it does go over. And this is an example where yes, this is a future deficiency that must be remedied based on improvements identified. Scenario C is the example where based on existing trips from existing development, it already exceeds the threshold. This is an existing deficiency and you can't use developer fees to remedy that deficiency but you can use developer fees to charge to the increment of new growth and new trips that make that problem worse so I just want to clarify that. So that's scenario C.

Next slide. And so why is this important? Well, this is just a map of the landscape that the City of Goleta has to deal with. So you're the purple areas but the yellow is the county. You see the orange areas are county as well. Those are county rezones that were once all ag for the most part and now we'll have significant residential development associated with them.

The city of Santa Barbara is in the green The airport area, there's growth there. There's growth in the east side and then obviously you have UCSB And that's a big contributor. So you see the percentage of, and this is associated with only growth, not what's out there today, only growth. So about 65%, and it's the city's responsibility but 6% is UCSB based on their projections for long range development plan. 6% is the City of Santa Barbara with their growth around the airport and east, and then you see the county with 23% approximately. And what does that mean in dollars and cents? That's about $65 million.

The City of Santa Barbara and UCSB is about 19 million each. So with that I will pass it back to Bob.

»» Great. Thanks Jim. This slide gives a very high-level summary of the results of the analysis. This is for each of the six fee categories that we looked at. The fees that the city inherited from the county listed in the first column, and then upon incorporation. And then we have the, or I should say prior to when the city adopted its own fees in 2019 which is when the city first adopted its own impact fee schedule. So the county fees were what the city was charging up until 2019. Then we have the current fee schedule that came out of the 2019 nexus study that we completed Now with this five-year update, we have a new maximum justified amount which is in the final column. And you can see the total across all fees is shown in the bar chart.

If you add them all up, you can see the trend from $21,000 For the county fee schedule prior to the city's first nexus study. 31,000 is the current fee schedule based on that Nexus study and then 55,000 would be the maximum justified fee based on the current Nexus study before you tonight. Next slide. So what's driving the large increases? The main thing is between 2019 and now we've had some significant inflation tied with the COVID epidemic. And across all categories of consumer and capital goods, you all may have experienced the rapid levels of inflation over the last five years. So that's been one primary driver.

We've also got a Revisions to the transportation deficiency list and refining the projects, the allocation to deficiencies. We have a more accurate inventory of existing facilities that's been a major change from From the 2019 study, where we just weren't able to capture because of some gaps in the city's asset inventory. We weren't able to capture all the city's existing capital facilities inventory and as I mentioned at the outside it's that existing facilities inventory outside of transportation that drives the maximum justified fee for the other fee categories so.

And I should mention both land and construction costs have increased since 2019, not just construction due to inflation. So any questions? That's the end of our presentation. Happy to address any questions and answer any issues that the council may want to bring up for us. Appreciate it.