Meeting Summary
Present: 1-Infanti, 3-Smith, 2-Orona, Brown
This summary was AI-generated to save you time. It may miss or misstate details, so verify against the official recording and the transcript.
At a glance
Solvang Mesa LLMD Assessment
- Staff proposed a 3% assessment increase to fund sidewalk repairs and maintain reserves.
- Public comment raised concerns regarding reserve levels, contractor performance, and fire safety priorities.
- The City Attorney confirmed the increase complies with the Streets and Highways Code and lacked a majority protest.
- The Council unanimously approved Resolution 26-1317 to levy the new assessment.
Draft Biennial Budget
- Staff presented a draft budget projecting a surplus for 2026-27 and a larger surplus for 2027-28.
- Discussion covered Measure U allocations, water fund deficits, and capital improvement plans for parks.
- Staff recommended restructuring the HR Specialist role into a Management Analyst position.
- The Council received the report and directed staff to finalize the budget for the June 22 meeting.
State Route 246 Relinquishment
- Staff requested direction to explore transferring State Route 246 from Caltrans to city control.
- Council members weighed the benefits of local traffic management against long-term maintenance liabilities.
- The process is estimated to take three to nine years with an option to stop at any time.
- The Council voted to direct staff to initiate the relinquishment process.
Code of Ethics Amendments
- Proposed changes require annual disclosure of Form 700s and quarterly reporting of new financial interests.
- A new enforcement mechanism allows the Council to impose sanctions for code violations by members.
- Legal counsel clarified that safeguards include investigation rights and a supermajority vote threshold.
- The Council approved the amendments, including a correction to remove a redundant section heading.
Closed Session
- The session addressed labor negotiations with the Teamsters Union and unrepresented employees.
- The City Attorney reported that no reportable action was taken during the closed session.
Full summary
Closed Session
- The meeting commenced with a closed session regarding labor negotiations. Two items were addressed: Item 2A concerning the Teamsters Union Local 986 and Item 2B concerning all unrepresented employees. Following the session, the City Attorney reported that no reportable action was taken.
Public Communications
- Public comment was opened for non-agenda items. One speaker addressed the Glenway Apartments development, expressing concerns regarding building scale, wetland habitat loss, and wildlife impact, while acknowledging the need for housing. Another speaker raised concerns about the switch from state water to well water, citing issues with water hardness and requesting better notification regarding water source changes and testing schedules. The City Manager responded that the annual Consumer Confidence Report is published on the city website and mailed with water bills, and that water testing occurs multiple times per year.
City Manager's Report and Advance Calendar
- The City Manager presented a video from the Code Enforcement Officer introducing a new biannual yard beautification program with three categories: Most Beautiful, Most Drought Tolerant, and Exceptional Defensible Space. Winners will receive certificates, yard signs, and recognition in city communications. Nominations may be submitted via email or the city's social media pages. The City Manager noted that the next council meeting will focus on final budget adoption, with no meetings scheduled for the second weeks of July and August.
Ex Parte Communications and Council Comments
- Council members provided updates on recent activities, including attendance at the Urban Boundary meeting, a site visit to the Lompoc Police Department, aquatics meetings regarding a joint use agreement, a groundwater sustainability meeting, and a regional housing strategy session at Vandenberg Air Force Base. One council member commented on the Glenway Apartments development, noting the density of the proposed buildings and suggesting a more spread-out design. Another council member thanked staff for budget committee work and noted attendance at a community award dinner and a grand opening event.
Consent Agenda
- The Consent Agenda, consisting of routine administrative matters, was presented. A motion was made and seconded to approve the Consent Agenda as presented. The motion passed unanimously. Following the vote, the City Manager highlighted the adoption of a resolution regarding the general municipal election, noting that information regarding the three available seats is available to the public.
Item 7A: Solvang Mesa Landscape & Lighting Maintenance District (LLMD) Assessment
- A public hearing was held to consider Resolution 26-1317, confirming and levying assessments for the Solvang Mesa LLMD for fiscal year 2026-27. Staff presented a report detailing a proposed 3% assessment increase, totaling an additional $41.88 per parcel annually, intended to cover sidewalk repairs and maintain reserves. Staff explained that the maximum allowable assessment is calculated based on the original assessment value compounded by 5% annually over 22 years, and the 3% increase aligns with the Consumer Price Index. Staff clarified that the district holds over $580,000 in reserves designated for catastrophic events, though some funds are being utilized for the current sidewalk repair project.
- Public comment was received from three residents. One speaker opposed the increase, arguing the fiscal impact statement was misleading and that the district had sufficient reserves. Another speaker criticized the performance of the current contractor, Brightview, and questioned the allocation of funds toward sidewalks versus fire abatement. A third speaker questioned the legal basis for the increase regarding Proposition 218 and expressed concern that sidewalk repairs were being prioritized over fire safety.
- The City Attorney clarified that while Proposition 218 governs property-related assessments, LLMDs operate under the Streets and Highways Code, which requires notice and a public hearing. The attorney noted that a majority protest (more than 50% of affected properties) would prevent adoption; however, only three objections were recorded, which did not constitute a majority protest. The City Manager added that the contractor's performance had improved following recent follow-ups and withheld payments, and that converting the LLMD to a Homeowners Association would require a two-thirds vote of property owners.
- A motion was made and seconded to approve Resolution 26-1317, confirming and levying the assessment for the Solvang Mesa LLMD. The motion passed unanimously.
Item 8A: Draft Biennial Budget for Fiscal Years 2026-27 and 2027-28
- Staff presented the draft biennial budget. For fiscal year 2026-27, total revenues across all funds are projected at approximately $31.4 million, with expenses at approximately $30.8 million, resulting in an estimated surplus of $618,622. For fiscal year 2027-28, the estimated surplus is approximately $3.5 million, excluding Measure U expenses and suspended Table A costs for water purchases.
- The General Fund unrestricted operating position shows projected revenues of approximately $13.9 million and expenditures of approximately $13.6 million, yielding an operating surplus of $340,306. Major revenue sources include Transient Occupancy Tax, sales tax, and property tax. Major expenditures include personnel services, utilities, supplies, repairs, and maintenance. The budget includes funding for 42 full-time employees and 10 part-time seasonal lifeguards. Grant funding is proposed for various community organizations.
- Measure U revenue is projected at $2.45 million for 2026-27, with expenses of $3.78 million, utilizing existing fund balances. Measure U funds are allocated to supplement the law enforcement contract, Hans Christian Andersen improvements, park repairs, weed abatement, wildfire protection, and parking lot slurry sealing.
- The Water Fund shows projected revenues of approximately $6.67 million and expenses of approximately $7.3 million for 2026-27, with the deficit attributed to a suspended cost for purchasing extra water. The Wastewater Fund shows a projected operating surplus for 2026-27, but a negative fund balance for 2027-28 due to the wastewater treatment plant upgrade, which will require interim financing until USDA loan funds are received.
- The Capital Improvement Plan (CIP) for 2026-27 totals approximately $12.9 million across all funds. Staff noted that a nexus impact fee study report is being solicited to refine cost projections. Forecasts indicated that without Measure U, General Fund expenses would exceed revenues by 2035-2036. With Measure U, the General Fund remains balanced longer, though expenses are projected to exceed revenues by 2034-2035. Staff recommended strategic planning for revenue generation and incremental rate increases.
- Council members asked questions regarding the significant increase in capital improvement projects for parks in the first year of the budget, which staff attributed to the Parks, Max, and Rec Master Plan. Discussion also covered the city's reliance on grants, the status of the USDA loan for the water meter replacement project, and a staff recommendation to eliminate the HR Specialist position and replace it with a Management Analyst role. During public comment, the incumbent HR Specialist expressed concern regarding the timing of the recommendation. Staff clarified that the position elimination was intended to upgrade the role's scope and capabilities, with a net budget impact of approximately $22,000. The Council received the report and provided direction to staff to finalize the budget for consideration at the June 22, 2026 meeting. No formal motion was made on the HR position during this segment.
State Route 246 (Mission Drive) Relinquishment Process
- Staff presented a request for direction to initiate a process to explore the relinquishment of State Route 246 (Mission Drive) from Caltrans to the City of Solvang. The proposal aims to address traffic, pedestrian, and bicycle circulation issues on the main street. Staff outlined the relinquishment process, which involves a letter of intent, a Caltrans assessment, legislative action, and a final decision by the California Transportation Commission. The timeline is estimated at three to nine years, and the city would retain the ability to stop the process at any time.
- Council members discussed the potential benefits of local control against the liabilities of assuming perpetual maintenance costs and liability. Questions were raised regarding the potential for a one-time state payment to cover deferred maintenance, the necessity of contracting Caltrans for signal maintenance, and the implications of future city limit expansions. Staff noted that while other cities have successfully relinquished state routes, Solvang's situation is more complex as the route continues beyond city limits.
- A motion was made and seconded to direct staff to initiate the SR 246 Mission Drive relinquishment process and authorize the City Manager to execute necessary forms. The motion passed.
Code of Ethics for City Council and Advisory Bodies
- Staff presented proposed amendments to the City's Code of Ethics. The primary changes included Section 8, which would require the City Manager to annually provide Form 700s of all Council members to the Council and to report new financial interests quarterly. Section 18 proposed a new enforcement mechanism allowing the Council to impose sanctions, such as censure or removal from committee assignments, for violations of the code by Council members or advisory body members.
- Council members debated the necessity of the new reporting requirements, with some noting redundancy with existing state FPPC laws, while others supported the increased transparency. Concerns were raised regarding the potential for the enforcement mechanism to be weaponized for political purposes. Staff and legal counsel explained that the proposed process includes procedural safeguards, such as a requirement for an investigation, a right to respond for the accused, and a supermajority vote threshold. It was clarified that the enforcement provisions apply to formally appointed advisory bodies rather than ad-hoc committees.
- A motion was made and seconded to approve the recommended changes to the Code of Ethics, including a correction to remove a redundant section heading in Section 18. The motion passed.
Adjournment
- The meeting was adjourned at 9:16. No formal motions were moved, seconded, or voted upon during this segment.