Last Resolution No. 18-1031 - City of Solvang

Last Resolution No. 18-1031 Last Ordinance No. 18-0329

REGULAR MEETING OF THE SOLVANG CITY COUNCIL

COUNCIL CHAMBERS 1644 OAK STREET

January 22, 2018 6:30 p.m.

Please be advised that, pursuant to State Law, any member of the public may address the Council concerning any item on the Agenda. Please be aware that Items on the Consent Calendar are considered to be

routine and are normally enacted by one vote of the Council. If you wish to speak on Items 3 or 4 please do so during Public Communications.

Regular City Council meetings are broadcast live on Channel 23 in the Santa Ynez Valley, and stream live on the City’s website at www.cityofsolvang.com/City Council

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

CITY MANAGERS REPORT

1. PUBLIC COMMUNICATIONS – WRITTEN OR VERBAL

At this time, please direct comments to the City Council regarding Consent Calendar Items ormatters NOT on the agenda but within the jurisdiction of the Council. (Speakers are limited tofive [5] minutes).

2. COUNCIL COMMENTS AND REQUESTS

Comments and requests from City Council Members. No action will be taken at this meeting.

3. CORRESPONDENCE RECEIVED BY CITY COUNCIL

4. CONSENT AGENDAa. Approval of Agenda as Presentedb. Approval of Draft Minutes of the January 8, 2018 City Council Meetingc. Receive and File Sheriff’s Department Report for December 2017d. Receive and File Fire Department Quarterly Report for October-December 2017e. Solvang Conference & Visitors Bureau Ratification of Board Members

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http://www.cityofsolvang.com/City

f. Resolution of Intention to Approve an Amendment to the Contract between CalPERS Board of Administration and the City Council of the City of Solvang

1. Adopt Resolution No. 18-____, a Resolution of Intention to Approve an Amendment to Contract between the Board of Administration California Public Employees’ Retirement System and the City Council, City of Solvang; and

2. Hold the first reading of Ordinance No. 18-____, an Ordinance of the City Council of the City of Solvang authorizing an Amendment to the Contract between the Council of the City of Solvang and the Board of Administration of the California Public Employees’ Retirement System

g. Water Softener Upgrade Rebate Program 1. Approve proposed Residential Water Softener Upgrade Rebate Program, and 2. Approve budget adjustment in the amount of $6,000 to fund the program for the

remainder of FY 2017-18 h. Donation of Parks Department mower to SYV Youth Recreation

Approve the donation of a surplus Parks Department ride-on lawn mower to Santa Ynez Valley Youth Recreation

REGULAR AENDA

5. CITY HALL & FIRE STATION VEHICLE WASH PAD Provide staff direction on construction of the proposed City Hall & Fire Station vehicle wash pad.

6. PROPOSED TROLLEY SHADE STRUCTURE Provide staff with further direction regarding the proposed trolley shade structure.

7. MISSION VIEW APARTMENT PROJECT FEE & TIMELINE REVIEW Review project timeline and fees.

8. REVIEW BIDS OF HCA RESTROOM REMODEL PROJECT Review the bid proposals for the Hans Christian Andersen Park ADA Restroom Remodel project, and provide staff with direction on which option to pursue.

9. 2016-2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) AND FINANCIAL REVIEW Accept into the record the 2016-2017 Comprehensive Annual Financial Report as presented by Terry Krieg, CPA; and review ending fund balances for fiscal year ended June 30, 2017.

10. COUNCIL MEMBER REPORTS (Oral reports: Each Council Member will give oral reports on their activities in relation to the following committee or agencies. In addition, each member may report on items that will be included on the agenda for such committee or agency and seek guidance from the Council as a whole on such items, including on what position to take on behalf of the City)

• Santa Barbara County Association of Governments • Air Pollution Control Board • Joint Wastewater Committee • Chumash Tribe • Library Ad Hoc Committee

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• Indian Gaming Benefit Committee

11. ADVANCE CALENDAR Informational Calendar – No Action.

12. ADJOURNMENT Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1644 Oak Street, Solvang, during regular business hours and on the City’s website www.cityofsolvang.com, in addition, any writings relating to an open session agenda item provided to a majority of the Council that is distributed within 72 hours of the meeting, after the posting of the agenda, will be identified and available separately at City Hall and may be posted to the website. In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the office of Administrative Services at 688-5575 or the California Relay Service. Notification 48 hours prior to the meeting would enable the City to make reasonable arrangements to ensure accessibility to this meeting.

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January 11, 2018

Solvang City Council1644 Oak St.

Solvang, CA 93463

Re Santa Ynez Valley Transit Schedule Change

Council Members:

Here in the Santa Ynez Valley we have had an excellent. communityTransportation system supported by you... but that is about to

change.

My wife and I have used this system almost every week day for 14 yearsas a part of our walking exercise program. ( We are 86 and 77 years of

age). We have spent approximately $ 7, 000 for our bus passes and

got-to know all of the wonderful drivers.

Now we.see that,a major change is to take place on January 22, 2018.Route A, which we always take into Los Olivos is being eliminated andit will take at least two different buses to go from Los Olivos to Buellton.

Further, their will only one daily morning-trip,to Los Olivos, and in onedirection only. This a big loss for many passangers.

Essentially.Los Olivos is being left out of proper- service.

The idea of the S,YVT.was to-SERVE THE COMMUNITY. The new

schedule seems more to serve the needs tourists and the bus company.

We qualify for " Dial-a-Ride"....but to-use that means that we would need

to have dial a ride meet us every morning at Refugio and Roblar. Themodest cost doesn't bother us, but what a waste for the system.

We hope,that you will go back to the old schedule and again serve the

needs of the community. Please,restore Rout A-and-its-:timing.:

David and Margaret Houtz

P.0 Box'897, Los Olivos,,[email protected]

598- 39.33

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MINUTES OF THE REGULAR MEETING OF THE

SOLVANG CITY COUNCIL ____________________________________________________________________________________ Council Chambers January 8, 2017 1644 Oak Street Monday Solvang, CA 93463 6:30 pm ____________________________________________________________________________________

CALL TO ORDER: Mayor Richardson called the meeting to order at 6:30 p.m.

ROLL CALL:

PRESENT: Mayor Richardson, Council Members Jamieson, Toussaint, Waite and Zimmerman

STAFF: Brad Vidro, City Manager; Dave Fleishman, City Attorney; Matt van der Linden, Public Works Director, Sandra Featherson, Administrative Services Director, Lisa S. Martin, City Clerk; and Lt. Shawn O’Grady

PLEDGE OF ALLEGIANCE: Led by Mayor Richardson

Mayor Richardson presented a proclamation to Lt. Shawn O’Grady for his years of service to Solvang.

CITY MANAGERS REPORT

Informational report only. 1. PUBLIC COMMUNICATIONS – WRITTEN OR VERBAL

David Goldstein, Business Owner Requested that the city continue to support the Library Suggested that Hans Christian Andersen Park include a native habitat exhibit area Suggested the City provide builders with a cost estimate of all permits and approvals Suggested the Mayor participate in the National Climate Action Agenda

Richard Christensen, Solvang Resident It would constitute a gift of public funds for the City to construct a shade structure for the horse-

drawn trolley business Discussed the proposed truck wash next to the fire station and how it could negatively affect the

adjoining residential property Questioned if the truck wash would be using recycled water Suggested that the Council favors tourism over the needs of the residents

Cindy Santana, Solvang Resident (360 Second Street) Requested that the Council reconsider the location of the vehicle wash which is proposed right

next to her house as it is too close to her bedroom and bathroom and she is concerned about the overspray

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Public Works Director van der Linden explained that the “car wash” is actually a drain in the concrete and a hose for the Fire Department to use to wash the trucks. Public Work’s goal is to mitigate soapy/oily water from going into the storm drain system. There is Council Consensus to add discussion of this item to the next meeting agenda. Tracy Beard, Solvang Chamber Invited the Council and staff to the board member installation meeting at the Landsby Announced that the new Walk, Shop, Wine & Dine map is out

Rikka Rasmussen, Solvang Resident Commented that the vacant lot on Oak and Second Street that the City just purchased is in a

residential zone and she is fine with a parking lot, as long as it is not used for bus parking which would not be conducive to the residential area

2. COUNCIL REQUESTS

Council Member Waite would like a future agenda item on how and when the Planning Department gives cost estimates to applicants/developers, and specifically questioned the Mission View Apartments project timeline.

3. CORRESPONDENCE RECEIVED BY COUNCIL

No discussion.

4. CONSENT AGENDA a. Approval of Agenda as Presented b. Approval of Draft Meeting Minutes

Review and approve Draft City Council Minutes of the December 11, 2017 meeting c. Approval of Warrant Register d. Receive and File Sheriff’s Department Report for November 2017 e. SB1 Santa Ynez Valley Transit State of Good Repair Grant Applications

1. Adopt Resolution No. 18-____, a Resolution of the City Council of the City of Solvang, approving submittal of the Santa Ynez Valley Transit State of Good Repair Grant Applications; specify Authorized Agents to execute and file all grant related documents; and approve the Certification & Assurances document

f. CalOES Designation of Agent Resolution for the Purpose of Obtaining Federal Financial Assistance and/or State Financial Assistance under the Disaster Relief and Emergency Assistant Act of 1988

Adopt Resolution No. 18-____, a Resolution of the City Council of the City of Solvang, designating an Authorized Agent to provide to the Governor’s Office of Emergency Services all assurances and agreements required for all matters pertaining to State Disaster Assistance

g. Receive and file a joint letter from the Solvang Chamber of Commerce and City Council Economic Development Committee Chairman Toussaint regarding economic impacts to businesses related to the Thomas Fire

Motion made by Council Member Jamieson to approve Consent Agenda item G, seconded by Council Member Waite, and carried with a verbal response of 5 ayes.

REGULAR AGENDA

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5. APPOINTMENT OF MAYOR PRO TEM

Staff report by Brad Vidro, City Manager. Mayor Richardson opened the item to public comment at 7:24 p.m. and, seeing none, closed the item. Motion made by Mayor Richardson to nominate Council Member Jamieson as Mayor Pro Tem, seconded by Council Member Waite, and carried with a verbal response of 5 ayes.

6. REVIEW OF CITY OF SOLVANG GRANT FUNDING POLICY

Staff report by Sandra Featherson, Administrative Services Director. Council Member Zimmerman would like to see the SCVB added to the list. Mayor Richardson opened the item to public comment at 7:38 p.m. and, seeing none, closed the item. Discussion by Council regarding prioritizing grants for those in need, agencies that are deserving, and for those groups providing support to the Solvang community itself. Mayor Richardson commented that the policy already says that the funds should be given to agencies within this city and must benefit Solvang residents. It might be enough to have the finance committee be more restrictive and better follow the existing policy. Council Member Jamieson added that the Council should remember how much we need to spend on the library. It was acknowledged that the SCVB, Library and Chamber are the largest amounts of money we pay out.

Discussion regarding whether or not the SCVB is considered a grant. Brad Vidro explained that SCVB is different because we have a contract with them to be our advertising agency.

Council Member Toussaint stated that the Solvang Chamber should also be pulled out for the same reason as SCVB, they provide a critical role. Mayor Richardson re-opened the item for public comment at 8:00 p.m. Tracy Beard, Solvang Chamber Would like to work with the City under contract as the business advocate

The item was re-closed to comments at 8:02 p.m. Mayor Richardson suggested entering into a contract with the Chamber so that they are excluded from the grant process. Council Member Waite agreed to a cap on the total amount granted, and the finance committee then prioritizing the grant requests to fit within that amount. There was Council consensus to cap total grant funding at 3% of the prior year’s general fund revenues.

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7. CITY COUNCIL POLICIES

Staff report by Brad Vidro, City Manager. Mayor Richardson asked what the difference is between the City’s code of ethics and AB1234. Dave Fleishman responded that AB1234 is a state mandated training for government officials while the Code of Ethics is a City policy document. Mayor Richardson opened the item to public comment at 8:14 p.m. and, seeing none, closed the item. Council Member Jamieson agreed with the staff’s proposed changes to the reimbursement policy and requested that the electronic device policy be updated. Council Member Toussaint would like to see changes to the travel reimbursement policy and would rather institute a per day travel payment. Discussion ensued regarding the “lowest economical cost” language of the policy. There was Council consensus to bring back revised policies.

8. AN ORDINANCE AMENDING TITLE 1, CHAPTER 4, CITY COUNCIL, OF THE

SOLVANG MUNICIPAL CODE ADJUSTING PUBLIC COMMENT SPEAKER TIME Staff report by Brad Vidro, City Manager. Mayor Richardson opened the item to public comment at 8:24 p.m. and, seeing none, closed the item. Motion made by Mayor Richardson to adopt the Ordinance, seconded by Council Member Waite, and carried with a roll call vote of 5-0. Council Member Toussaint noted that we had speakers tonight who went well over their 5 minute limit so it seems as if this might be unnecessary at this time. We already have the ability to reduce or extend the speaker time as called out in the code. Council Member Waite commented that most of the jurisdictions she’s been involved in only allow 3 minutes, especially for public comment at the beginning of the meeting. Motion made by Mayor Richardson to adopt Resolution setting a 3 minute limit on public speaker comment time, seconded by Council Member Waite, and carried with a roll call vote of 4-1 with Council Member Toussaint voting No.

9. COUNCIL MEMBER REPORTS (Oral reports: Each Council Member will give oral reports on their activities in relation to the following committee or agencies. In addition, each member may report on items that will be included on the agenda for such committee or agency and seek guidance from the Council as a whole on such items, including on what position to take on behalf of the City)

• Santa Barbara County Association of Governments • Air Pollution Control Board • Finance Committee • Joint Wastewater Committee • Chumash Tribe

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• Water Committee • Indian Gaming Benefit Committee • California Joint Powers Insurance Authority

No reports.

10. ADVANCE CALENDAR Informational Calendar – No Action.

11. ADJOURNMENT Mayor Richardson adjourned the City Council meeting at 8:32 p.m.

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M E M O R A N D U M Date: January 16, 2018 To: Solvang City Council From: Senior Deputy Charlie Uhrig Subject: Solvang Statistics and Activity Report for December CC: Lt. Eddie Hsueh

This statistics report provides a general overview of law enforcement activity in the City of Solvang for the month of December. The report highlights and describes patterns of activity, significant felonies in the city, and noteworthy performances by deputies assigned to the Solvang station.

Burglary:

There were two burglaries reported in Solvang during the month of December.

On 12-26-17 (case 17-17029), Solvang Patrol was dispatched to a commercial building in the 400 block of First Street, for a report of arson and burglary. Upon arrival, the deputy spoke with fire personnel who directed him to contact the County Arson Investigator. The deputy made contact as was told the following: Fire personnel responded for a smell of smoke at the business. The reporting person could smell smoke emanating from the building from across an alleyway. When fire personnel arrived, they had to force entry into the building through plywood barriers. They located a fire on the third floor in a small room. Unknown suspect(s) had forced entry into the building and collected a large amount of paper from around the abandoned building to start a fire. The fire was contained and did not appear to cause any damage. The Arson Investigator said he did not locate any items, which could lead to the suspect(s). He requested a report to document the forced entry located on the south side of the building. The Arson Investigator provided a case number for his Investigative report (case #16900). The loss value is unknown and the case is closed pending further leads.

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On 12-27-17 (case 17-17058), Solvang Patrol was dispatched to the 600 block of Alamo Pintado Road, for a report of a commercial burglary. The deputy contacted the victim/owner and he stated the following: An unknown male suspect broke into the door of a shipping container, which contained miscellaneous items, including liquor, employee supplies, cash, and payroll items. The victim stated he had viewed his surveillance video and saw the suspect break into the container with a crowbar type tool. The victim said he did not know the suspect. Deputies reviewed the video and were able to get a description of the suspects’ clothes and tools, including a flashlight left behind. However, the jacket he was wearing obscured the suspects face. Deputies were also able to gather shoe impressions from items obtained at the scene and booked all items into the Sheriff’s evidence locker. The loss value is about $500, and the case is suspended pending further leads.

Other Significant Activity:

During the month of December, deputies conducted 88 traffic stops, which resulted in 33 citations written for various offenses, including 1 parking cite, 23 moving violations, and 2 for equipment violations. Most of the moving violations were for the speed enforcement of the Viborg corridor, Pine Street, and Skytt Mesa areas. There were 20 Alarm calls and 9 Check the Welfare calls. There were 10 traffic related investigations during the month of December, and one coroner case reported in Solvang. In addition, deputies referred one suspected elder abuse case to Adult Protective Services for the month of December. Two residents used the new online reporting system to file reports.

On 12-26-17 (Case 17-17021), patrol deputies were patrolling and saw a couple sitting in a vehicle. Deputies contacted the two subjects and saw they were involved in illegal drug activities, and that their child was in the rear seat unrestrained. During the investigation, the deputy learned the male was the subject of a recent BOL because of a violation of a felony probation. Deputies arrested the couple for felony child endangerment, transported and booked the male suspect into the County Jail. Child Welfare Services picked up the child. Murder:

There were no murders reported in Solvang for the month of December.

Rape: There were no rapes reported in Solvang in the month of December.

Robbery: There were one attempted robbery reported in Solvang during the month of December.

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On 12-06-17 (Case 17- 16288), multiple deputies responded to a report of an attempted robbery that had just occurred in the 400 block of Second Street. Deputies contacted the reporting party and he stated the following: He saw two male subjects sitting in a parked SUV type vehicle. He reported that both subjects were in their early 20”s, and over 6 feet tall. He said the passenger exited the vehicle and walked north of his location where he lost sight of him. He said the suspect returned soon after and reentered the vehicle. He said he could hear the driver ask, “Did you get it”, and then they left the area.

The deputy contacted the victim and she told the following: She was walking with her son and husband, when an unknown suspect walked up behind them and attempted to take her purse from her by force. She said she screamed and struggled with the suspect, and he let go of the purse and ran away, where he got into a vehicle and sped away. During the interview, three other deputies located the suspects in the suspect vehicle a couple of blocks away. They detained the suspects who initially denied any involvement, but eventually confessed to the deputies. The two minor suspects were arrested for felony attempted robbery, possession of controlled substances, and transported to Juvenile Hall

Domestic Assault/Assault: There were no cases of domestic violence/assault reported in Solvang for the month of December. Grand Theft: There was one grand theft reported in Solvang during the month of December.

On 12-23-17, (case 17-16915), Solvang Patrol responded to the 1400 block of Aarhus Drive to a report of theft of property. The deputy contacted the victim who stated the following: He said he had a racing bicycle stolen from his front yard. The bike was valued at about $1000, but was not in a rideable condition, as it lacked tires and a chain. Deputies searched the neighborhood for any witnesses or suspects but found nothing. The case is suspended pending further leads.

Auto Theft

There was no thefts of an auto reported in Solvang during the month of December.

Misdemeanors/Thefts:

There were 5 petty thefts and no vandalisms reported during the month of December.

Arrests:

During the month of December, deputies made ten misdemeanor arrests and one felony arrest. See felony arrest in the significant activity section. These arrest totals included the

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following types of Misdemeanor arrests: two for DUI, one for Public Intoxication and two for Narcotics.

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Monthly Activity Report for December This is the December end of the month report from the Solvang Community Resource Deputy. It highlights all the activities, meetings, and presentations by the Community Resource Deputy for the month of December.

MEETINGS:

On December 5, I met with Fred and Jenny of Solvang Rec to discuss the upcoming Tree Burn.

On December 9, I met with Pastor Chris Brown and delivered Salvation Army vouchers for Bethania Church and Preschool families in need.

On December 11, I attended the City Council meeting.

On December 12, I attended a City Staff meeting.

On December 15, I met with Nick, from Salvation Army Disaster Assistance, to pick up masks, and a check for the Mission Gift Basket program.

PRESENTATIONS: No presentations in the month of December.

ACTIVITIES:

On December 1, 6, 8, and 13, I worked security details for the Courts.

On December 2, I organized and worked the Julefest parade in Solvang. No incidents to report.

On December 2, 3, 9, 10, 16, and 17, I worked and moderated the local Salvation Army Kettle Drive. Due to bad air quality, we had to cancel the Kettle Drive on Dec 10.

On December 4, 11, 18, and 19, I counted and deposited the funds collected from the Kettle Drive.

On December 4, I also serviced the two clients on the Project Lifesaver Program in Solvang.

On December 5, I set up the radar trailers and performed speed estimations.

On December 7, I stayed in the City office for the Water shutoffs.

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On December 12, I checked and cleaned the new radar speed trailers, as one had stopped working due to ash fallout on the solar panels.

On December 15, I delivered a check from Salvation Army for the Mission Gift Basket program to assist Valley families in need.

On December 21, I delivered Salvation Army vouchers to The Ranch Church and Gateway to assist families in need.

On December 22, I worked a Missile Launch security detail.

On December 25-31, I was on vacation. Happy New Year!

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CITY OF SOLVANG STATISTICS 2017ACTIVITY JANFEBMARAPRMAYJUN JULAUGSEPOCTNOVDEC YTD Total

Log Entries 337 341 358 396 448 376 433 429 415 353 305 304 4495OAI Reports 59 45 46 50 49 53 53 61 66 47 39 50 618Trfc Invest. 11 6 6 16 8 4 10 12 15 14 5 10 117Coroner 1 1 0 0 1 0 0 0 0 0 1 1 5Burglaries 3 1 2 0 4 5 1 1 3 1 1 2 24Attempts 0 0 0 0 0 0 0 0 0 1 0 0 1Residential 1 1 1 0 1 3 1 1 2 0 0 0 11Vehicle 1 0 0 0 1 0 0 0 1 0 0 0 3Commercial 1 0 0 0 2 2 0 0 0 2 1 2 10Other 0 0 1 0 0 0 0 0 0 0 0 0 1Felonies 6 7 3 2 2 2 4 4 10 6 3 3 52Murder 0 0 0 0 0 0 0 0 0 0 0 0 0Rape 1 0 0 0 0 0 0 0 0 0 0 0 1Robbery 0 0 0 0 0 0 0 0 0 1 0 1 2Assault 2 2 0 0 0 1 2 0 1 0 0 0 8Grand Theft 2 4 0 0 1 0 0 2 6 1 1 1 18Auto Theft 0 0 0 0 0 1 0 1 0 0 1 0 3Other 1 1 3 2 1 0 2 1 3 4 1 1 20Misd./Thefts 6 2 1 6 4 9 5 6 7 4 8 5 63Arrests 8 13 16 14 10 7 14 6 16 12 8 10 134Misd. 5 10 12 13 9 5 10 6 11 7 7 9 104Felony 3 3 4 1 1 2 4 0 5 5 1 1 30DUI 1 3 3 5 2 4 3 2 0 3 2 2 30Public Intox. 0 1 3 2 1 1 3 3 6 2 2 1 25Narcotic 2 1 2 1 2 0 3 0 2 3 3 2 21Citations 14 13 7 27 19 32 25 28 22 15 48 33 283Moving 1 1 2 13 10 20 10 5 5 2 9 23 101Equipment 1 3 1 7 7 4 4 7 6 6 5 2 53Other 12 9 4 6 1 5 1 2 6 5 6 7 64Parking 0 0 0 1 1 3 10 12 5 2 28 1 63Viborg Rd. 0 0 0 0 1 0 8 2 2 1 3 18 35Skate Park 0 0 0 0 0 0 0 0 0 0 0 0 0

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CITY OF SOLVANG STATISTICS 2016ACTIVITY JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD Total

Log Entries 255 282 317 340 423 351 452 410 420 356 443 439 4488OAI Reports 45 35 34 33 65 51 54 52 47 58 50 48 572Trfc Invest. 10 5 10 13 9 7 9 9 10 12 10 11 115Coroner 0 0 0 2 1 0 0 0 0 0 1 1 5Burglaries 4 1 2 1 0 4 6 2 0 1 2 2 25Attempts 0 0 0 1 0 1 0 0 1 0 0 0 3Residential 1 0 0 0 0 1 1 2 0 0 1 1 7Vehicle 2 0 2 0 0 1 5 0 0 0 1 1 12Commercial 1 1 0 1 0 2 0 0 0 1 0 0 6Other 0 0 0 0 0 0 0 0 0 0 0 0 0Felonies 3 5 1 4 3 7 2 4 3 4 5 3 44Murder 0 0 0 0 0 0 0 0 0 0 0 0 0Rape 0 0 0 0 0 0 0 0 0 1 0 0 1Robbery 0 0 1 0 0 0 0 0 0 0 0 0 1Assault 1 1 0 0 1 2 0 1 1 0 1 0 8Grand Theft 1 1 0 0 0 3 0 2 0 0 0 2 9Auto Theft 0 0 0 0 0 1 0 0 0 0 0 0 1Other 1 3 0 4 2 1 2 1 2 3 4 1 24Misd./Thefts 7 1 2 3 3 5 7 2 2 4 2 5 43Arrests 12 7 3 8 16 13 14 9 14 13 9 9 127Misd. 9 3 2 4 13 9 10 7 11 10 6 7 91Felony 3 4 1 4 3 4 4 2 3 3 3 2 36DUI 4 2 1 0 2 1 0 1 4 5 1 1 22Public Intox. 0 0 0 2 4 2 8 2 3 2 2 1 26Narcotic 1 1 1 1 2 1 2 0 2 1 2 0 14Citations 5 8 10 14 23 16 13 17 15 27 46 19 213Moving 1 0 1 5 4 2 4 7 5 12 16 3 60Equipment 4 3 1 2 1 4 3 4 3 7 11 9 52Other 0 4 8 6 16 6 5 5 7 8 12 7 84Parking 0 1 0 1 2 4 1 1 0 0 7 5 22Viborg Rd. 0 1 0 2 0 0 1 2 1 1 0 0 8Skate Park 0 0 0 0 0 0 0 0 0 1 1 0 2

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This Quarterly Report is provided to the City of Solvang by the Santa Barbara County Fire Department. It is a summary of emergency responses and calls for service as well as Fire

Prevention activities.

EMERGENCY RESPONSES AND CALLS FOR SERVICE

The statistics below document the 180 calls for service for the City of Solvang for October – December 2017

Fire Incident Type Incident Type Count

Incident District/Zone: 30

Alarm system activation, no fire - unintentional 2

Alarm system sounded due to malfunction 1

Animal rescue 2

Arcing, shorted electrical equipment 2

Assist invalid 6

Chemical hazard (no spill or leak) 1

CO detector activation due to malfunction 1

Dispatched and cancelled en route 24

Emergency medical service, other 2

Santa Barbara County Fire Department

Quarterly Report

For The City of Solvang

October– December 2016

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Fire Incident Type Incident Type Count

EMS call, excluding vehicle accident with injury 101

Good intent call, other 3

Motor vehicle accident with injuries 2

Motor vehicle accident with no injuries. 2

Motor vehicle/pedestrian accident (MV Ped) 1

No incident found on arrival at dispatch address 3

Person in distress, other 4

Public service 3

Public service assistance, other 2

Service call, other 3

Smoke detector activation due to malfunction 1

Smoke from barbecue, tar kettle 1

Smoke or odor removal 1

Smoke scare, odor of smoke 3

Steam, vapor, fog or dust thought to be smoke 1

System malfunction, other 2

Trash or rubbish fire, contained 2

Unauthorized burning 1

Vegetation Fire 1

Water or steam leak 2

Total: 180

Total: 180

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INCIDENTS BY UNIT AND DISTRICT

The statistics below document the 284 calls for service by unit and district for Station 30 October – December 2017

Incident District/Zone Total Incidents

Apparatus ID: E30

13 1

30 7

31 2

32 6

Total: 16

Apparatus ID: E330

13 1

18 2

21 1

22 1

24 1

30 4

31 3

32 3

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Incident District/Zone Total Incidents

AFV - Vandenberg Air Force 1

Total: 17

Apparatus ID: ME30

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13 1

18 3

24 2

30 162

31 29

32 38

51 4

Total: 251

Total: 284

FIRE PREVENTION DIVISION ACTIVITY

The Fire Prevention Division recorded the following activity for the months of October– December 2017

Fire Prevention Activities October November December

Fire Protection Certificates 1 0 2 Plan Checks 2 0 0 Development Reviews 1 0 0

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If you have questions or comments regarding this report,

please contact Captain Dave Zaniboni at (805) 681-5531.

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Incident Date (FD1.3)

Incident Primary Station (FD1.4)

Fire Incident Type Response Mode To Scene Response Time

Incident District/Zone: 30

10/13/2017 30 Dispatched and cancelled en route

Emergency


Emergency


Emergency, Downgraded to Non-Emergency


Emergency


Non-Emergency




Emergency


Non-Emergency


Emergency


Non-Emergency


Non-Emergency


Emergency


Emergency


Non-Emergency

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Emergency


Non-Emergency

10/13/2017 30 EMS call, excluding vehicle accident with injury

Emergency -0:01:50


Emergency -0:02:03


Emergency -0:02:14


Emergency -0:02:16


Emergency -0:02:18

10/15/2017 30 Motor vehicle accident with injuries

Emergency -0:02:33

12/09/2017 30 Animal rescue Non-Emergency -0:02:36

10/11/2017 30 Animal rescue Non-Emergency -0:02:37


Emergency -0:02:39


Emergency -0:02:40

11/08/2017 30 Chemical hazard (no spill or leak)


-0:02:48


Emergency -0:02:51


Emergency -0:02:53

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Emergency -0:02:55


Emergency -0:03:00


Emergency -0:03:01

10/22/2017 30 Motor vehicle accident with injuries

Emergency -0:03:06


Emergency -0:03:14


Emergency -0:03:17


Emergency -0:03:17

10/03/2017 30 Alarm system activation, no fire - unintentional

Emergency -0:03:19


Emergency -0:03:21


Emergency -0:03:22

11/24/2017 30 Good intent call, other Non-Emergency -0:03:25


Emergency -0:03:32


Emergency -0:03:35


Emergency -0:03:35


Emergency -0:03:38

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Emergency -0:03:43


Emergency -0:03:49


Emergency -0:03:51


Emergency -0:03:53


Emergency -0:03:58


Emergency -0:03:58

12/29/2017 30 No incident found on arrival at dispatch address

Non-Emergency -0:04:02


Emergency -0:04:07


Emergency -0:04:10


Emergency -0:04:13


Emergency -0:04:16

10/26/2017 30 Person in distress, other Non-Emergency -0:04:20

10/05/2017 30 Service call, other Non-Emergency -0:04:20

10/25/2017 30 Emergency medical service, other



Emergency -0:04:26

34





Emergency -0:04:27


Emergency -0:04:28




Emergency -0:04:30


Emergency -0:04:30

12/04/2017 30 Public service Non-Emergency -0:04:30


Emergency -0:04:31



-0:04:32


Emergency -0:04:34

10/15/2017 30 Motor vehicle accident with no injuries.

Emergency -0:04:34


Emergency -0:04:37


Emergency -0:04:38



Emergency -0:04:40


Emergency -0:04:42

35






-0:04:43


Emergency -0:04:44


Emergency -0:04:48

12/15/2017 30 Alarm system sounded due to malfunction



Emergency -0:04:55

12/29/2017 30 System malfunction, other Emergency -0:05:01


Emergency -0:05:02


Emergency -0:05:04



-0:05:10

10/14/2017 30 Assist invalid Non-Emergency -0:05:10


Emergency -0:05:12


Emergency -0:05:15


Emergency -0:05:18

11/12/2017 30 Smoke detector activation due to malfunction

Emergency -0:05:19


Emergency -0:05:22

36






Emergency -0:05:31




Emergency -0:05:35




Emergency -0:05:37




Emergency -0:05:43

10/23/2017 30 Arcing, shorted electrical equipment



Emergency -0:05:46




Emergency -0:05:47


Emergency -0:05:48


Emergency -0:05:48


Emergency -0:05:50

37





Emergency -0:05:51


Emergency -0:05:56


Emergency -0:06:00

11/24/2017 30 Water or steam leak Non-Emergency -0:06:01

12/10/2017 30 Water or steam leak Non-Emergency -0:06:01


Emergency -0:06:04


Emergency -0:06:11


Emergency -0:06:14

10/05/2017 30 Public service assistance, other Non-Emergency -0:06:19

12/02/2017 30 Alarm system activation, no fire - unintentional



Emergency -0:06:20


Emergency -0:06:23

12/18/2017 30 Motor vehicle accident with no injuries.

Emergency -0:06:25


Emergency -0:06:28

12/23/2017 30 Trash or rubbish fire, contained Emergency -0:06:29


38




10/28/2017 30 Arcing, shorted electrical equipment

Emergency -0:06:38



-0:06:39


Emergency -0:06:40



Emergency -0:06:53


Emergency -0:06:56


Emergency -0:07:00

11/13/2017 30 Public service Non-Emergency -0:07:03


Emergency -0:07:12



Emergency -0:07:20




-0:07:29





12/18/2017 30 Public service Emergency -0:07:45

39





Emergency -0:07:52




Emergency -0:08:00


Emergency -0:08:01

10/13/2017 30 Motor vehicle/pedestrian accident (MV Ped)

Emergency -0:08:03


Emergency -0:08:10

12/21/2017 30 Steam, vapor, fog or dust thought to be smoke



Emergency -0:08:20


Emergency -0:08:26


Emergency -0:08:36


Emergency -0:08:46


Emergency -0:08:48



Emergency -0:09:04


40




11/22/2017 30 Emergency medical service, other


-0:09:08


Emergency -0:09:16


Emergency -0:09:20

12/14/2017 30 System malfunction, other Emergency -0:09:32

11/28/2017 30 Smoke scare, odor of smoke Non-Emergency -0:09:39


Emergency -0:10:07


Emergency -0:10:14



Emergency -0:10:25

12/07/2017 15 Smoke or odor removal Non-Emergency -0:10:30


Emergency -0:10:34




11/08/2017 30 CO detector activation due to malfunction


12/30/2017 30 Smoke from barbecue, tar kettle Non-Emergency -0:11:26


Emergency -0:11:45

41





11/11/2017 30 Assist invalid Emergency, Downgraded to Non-Emergency

-0:12:45





Emergency -0:13:35

10/26/2017 30 Smoke scare, odor of smoke Emergency -0:14:19


Emergency -0:14:55

11/20/2017 30 Unauthorized burning Non-Emergency -0:15:29


Emergency -0:17:04

12/01/2017 30 Vegetation Fire Emergency -0:20:40



Emergency 0:00:00

12/26/2017 30 Trash or rubbish fire, contained Emergency 0:00:00

42

City of Solvang October– December 2017

Response time greater than 8 minutes


Emergency -0:08:00

10/20/2017 30 Dispatched and cancelled en route Cancelled en-route -0:08:01

10/13/2017 30 Motor vehicle/pedestrian accident (MV Ped) Emergency -0:08:03


Emergency -0:08:10

12/21/2017 30 Steam, vapor, fog or dust thought to be smoke Non-Emergency -0:08:14


Rural location -0:08:20






Out of District -0:08:46






-0:09:04


11/22/2017 30 Emergency medical service, other Emergency, Downgraded to Non-Emergency

-0:09:08



43


Cancelled en-route -0:09:20

12/14/2017 30 System malfunction, other Non-Emergency -0:09:32



Emergency -0:10:07





12/07/2017 15 Smoke or odor removal Non-Emergency -0:10:30





11/08/2017 30 CO detector activation due to malfunction Non-Emergency -0:11:18

12/30/2017 30 Smoke from barbecue, tar kettle Non-Emergency -0:11:26



11/11/2017 30 Assist invalid Emergency, Downgraded to Non-Emergency

-0:12:45




44





Rural Location -0:14:55

11/20/2017 30 Unauthorized burning Non-Emergency -0:15:29



12/01/2017 30 Vegetation Fire Out of District -0:20:40


45

CITY COUNCIL STAFF REPORT/CONSENT CALENDAR

TO: SOLVANG CITY COUNCIL MEMBERS FROM: Lisa S. Martin, City Clerk MEETING DATE: January 22, 2018 DATE PREPARED: January 12, 2018 SUBJECT: RATIFICATION OF SOLVANG CONFERENCE

AND VISITORS BUREAU (SCVB) BOARD MEMBERS I. RECOMMENDATION:

Ratify appointments of Kim Jensen and Art Sevtap to the Board of Directors. II. DISCUSSION:

As stated in the SCVB by-laws, new Board Members voted in by the SCVB Board of Directors require ratification by the Solvang City Council. The City received notification from the SCVB that the Board recently named a new appointment of Ertugrul (Art) Sevtap of Sevtap Winery, and re-appointed Kim Jensen of Ingeborg’s Chocolates for a second term. Other returning members fulfilling their two-year terms include: Angie Horn of Hamlet and Atterdag Inns, Matt Raab of Fresco Valley Café, and Laura Hanberg of Treats Boutique. Listed below is the complete list of current SCVB Board Members: Member Term Angie Horn 1/26/2017 – 12/31/2018 Laura Hanberg 1/26/2017 – 12/31/2018 Matt Raab 1/26/2017 – 12/31/2018

Kim Jensen 1/22/2018 – 12/31/2019 Art Sevtap 1/22/2018 – 12/31/2019

47

Additionally, Dr. Ken Harwood will continue to serve as an Honorary Member. III. ALTERNATIVES:

Council could deny ratification of the appointments.

IV. FICAL IMPACT:

None.

V. ATTACHMENT(S): None.

48

CITY COUNCIL STAFF REPORT/CONSENT AGENDA

TO: SOLVANG CITY COUNCIL MEMBERS FROM: Sandra Featherson, Director of Administrative Services MEETING DATE: January 22, 2018 DATE PREPARED: January 11, 2018 SUBJECT: RESOULTION OF INTENTION TO APPROVE AN AMENDMENT

TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF SOLVANG AND FIRST READING OF ORDINANCE TO AMEND SAID CONTRACT

I. RECOMMENDATION:

1) Adopt Resolution 18-____, A Resolution of Intention to Approve an Amendment to Contract Between the Board of Administration California Public Employees’ Retirement System and the City Council, City of Solvang;

2) Hold the first reading of Ordinance 18-____, an Ordinance of the City Council of the City of Solvang Authorizing an Amendment to the Contract Between the Council of the City of Solvang and the Board of Administration of the California Public Employees’ Retirement System.

II. DISCUSSION:

At the October 23, 2017 City Council meeting, a Memorandum of Understanding (MOU) with the Teamsters Union Local 986 was approved. As part of that agreement, the current contract with California Public Employees Retirement System (CalPERS) would be amended to reflect an increase in the cost sharing by the employees, of the employer’s share of the retirement contribution, from 6% to 8%.

49

Several steps must be taken to amend the CalPERS contract, including adopting a Resolution of Intention and enacting an ordinance authorizing the amendment. Both documents are attached in addition to the actual wording change of the contract. With the approval of these documents, a mandatory employee election will be held on January 24, 2018, followed by the final reading of the Ordinance at the City Council meeting of February 12, 2018. The final effective date of the CalPERS contract amendment will be March 19, 2018. As a result of this contract amendment and in accordance with the MOU the following changes will take place: Pre-Amendment/MOU Post Amendment/MOU

Employer’s CalPERS Normal Contribution 10.848 8.848 Employee’s CalPERS Contribution 6% 8% III. ALTERNATIVES:

The City Council could choose not to adopt the Resolution and redirect staff to not move forward with contract changes. If this were to happen, the City would be required to re-open negotiations with the bargaining unit.

IV. FISCAL IMPACT:

Amending the contract reduces the City contribution to CalPERS by an additional 2%. For the fiscal year 2017-18, this saves approximately $39,000 in CalPERS costs.

V. ATTACHMENTS:

A. Resolution of Intention to Approve an Amendment to Contract Between the Board of Administration California Public Employees’ Retirement System and the City Council, City of Solvang

B. Ordinance authorizing the amendment C. Amendment to Contract Between the Board of Administration California

Public Employees’ Retirement System and the City Council, City of Solvang

50

RESOLUTION NO. 18-____

RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES'

RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SOLVANG WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and

WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and

WHEREAS, the following is a statement of the proposed change:

To provide Section 20516 (Employees Sharing Additional Cost) of an additional 2% for classic local miscellaneous members.

NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. I HEREBY CERTIFY that the foregoing Resolution of Intention was introduced and adopted at a regular meeting of the City Council on this 22nd day of January, 2018, by the following roll call vote:

AYES: NOES: ABSENT: ABSTAIN:

By: Jim Richardson, Mayor

ATTEST: __________________________ Lisa S. Martin, City Clerk

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ORDINANCE NO. 18-_____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SOLVANG AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE COUNCIL OF THE CITY OF

SOLVANG AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

THE PEOPLE OF THE CHARTERED CITY OF SOLVANG DO HEREBY ORDAIN AS FOLLOWS: Section 1.

That an amendment to the contract between the Council of the City of Solvang and the Board of Administration, California Public Employees’ Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked “Exhibit”, and by such reference made a part hereof as though herein set out in full.

Section 2.

The Mayor of the Council of the City of Solvang is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency.

Section 3.

This Ordinance shall take effect thirty (30) days after the date of its passage. Section 4.

Solvang is a Charter City and has adopted its own rules for posting ordinances once they are adopted. The ordinance will be posted in three locations after adoption as directed in the Solvang Municipal Code with a record of the vote of each Council Member.

PASSED, APPROVED AND ADOPTED this 12th day of February, 2018:

BY: Jim Richardson, Mayor

ATTEST:

Lisa S. Martin, City Clerk

53

STATE OF CALIFORNIA ) COUNTY OF SANTA BARBARA ) CITY OF SOLVANG )

I, Lisa S. Martin, City Clerk of the City of Solvang, do hereby certify that the foregoing Ordinance had its first reading on January 22, 2018, and had its second reading on February 12, 2018, and was passed by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

BY: Lisa S. Martin, City Clerk

54

CITY COUNCIL STAFF REPORT/CONSENT AGENDA

TO: SOLVANG CITY COUNCIL MEMBERS FROM: Matt van der Linden, Public Works Director/City Engineer MEETING DATE: January 22, 2018 DATE PREPARED: January 12, 2018 SUBJECT: RESIDENTIAL WATER SOFTENER UPGRADE REBATE ROGRAM I. RECOMMENDATIONS:

1. Approve proposed Residential Water Softener Upgrade Rebate Program. 2. Approve Budget Adjustment in the amount of $6,000 to fund the Program for

the remainder of FY 2017-18. II. BACKGROUND:

The City of Solvang Wastewater Treatment Plant (WWTP) operates under a Waste Discharge Permit from the Regional Water Quality Control Board (RWQCB). Some of the constituents that most significantly contribute to the degradation of surface water and groundwater quality include nitrogen, sodium, chloride, and total dissolved solids (TDS or hardness). Therefore, in the City’s Waste Discharge Permit, RWQCB has imposed discharge limits on the concentrations of sodium (150 mg/l), chloride (150 mg/l), and TDS (1,000 mg/l) within the effluent of the Solvang WWTP. As is common throughout the United States, groundwater throughout the Santa Ynez Valley is hard, meaning it is high in calcium (Ca) and magnesium (Mg). As a result, in Solvang there is widespread use of water softeners and associated high volumes of brine waste (salt) discharged to the sewer system and WWTP. In October 2011, the City of Solvang completed a Salt Management Study, an independent study of the sources of sodium, chloride, and TDS that reach the WWTP. The Study found that residential salt-using self-regenerating water softeners (referred to as “automatic water softeners”) are the primary source of the high concentrations of sodium and chloride in the WWTP effluent. Based on

61

national studies and the estimates within the Salt Management Plan, each salt-using self-regenerating water softener is estimated to contribute between 20 and 40 pounds of salt per month to the Solvang WWTP. Residential discharge of brine waste to the Solvang sewer system and WWTP is a big problem. The WWTP is not designed to remove salts. Therefore, the salts are passed through to our recharge facility and the groundwater basin. Although State water is soft, only during rare periods of high State water availability/usage by the City is Ca and Mg low enough that we experience enough less water softening and brine discharge to the WWTP that we can meet our waste discharge requirements. From 2013 through 2016, during years of severe drought, the City had to rely more heavily on local groundwater supplies, and the sodium, chloride, and TDS concentrations in the Solvang WWTP effluent have increased to undesirable levels. During this period the sodium and chloride levels have fluctuated from approximately 10% below the discharge limit to approximately 30% above the limit. The undesirable concentrations of sodium and chloride in the WWTP effluent have the potential to result in the gradual degradation of the groundwater within the Santa Ynez River Basin. In addition, with the projected reduced availability of State water, the City’s Water Supply Management Plan recommends less usage of State water during periods of higher availability, and banking this water for use during future droughts. Therefore, during typical years, larger quantities of local groundwater (hard water) will be used resulting in more automatic water softener brine discharge to the WWTP. This will perpetuate the undesirable concentrations of sodium, chloride, and TDS in the WWTP effluent unless additional mitigating actions are taken. In 2002 the City Council revised its Municipal Code and implemented non-residential water softener restrictions effectively prohibiting brine discharge from all commercial land uses within the City. This has helped but is not nearly enough due to the high residential usage of automatic water softeners in the City. Something else must be done to reduce brine discharge to our WWTP. In recognition of this problem staff brought proposals before the City Council in 2016 to revise the Sewer Code and implement residential water softener restrictions. At its regular meeting of February 22, 2016 the Solvang City Council considered revising the Sewer Code and incorporating residential water softener restrictions. However, the City Council chose not to take action at that time, and directed staff to return to City Council with this item in the future in conjunction with a Water Softener Rebate Program. At its regular meeting of September 12, 2016 the Solvang City Council again considered revising the Sewer Code and incorporating residential water softener restrictions as well as implementing a Water Softener Rebate Program. However, the City Council chose not to take action on the proposed residential water softener restrictions or rebate program at that time. During this meeting the alternative of

62

City-wide wellhead treatment/water softening was discussed. Also, complaints were heard from residents about the hardness of City water, and support for City-wide wellhead water softening was expressed. The City Council directed staff to move forward on a City-wide wellhead water softening study, and postpone the proposed Water Softener Rebate Program until after completion of the study. At its regular meeting of November 14, 2016 the Solvang City Council again considered revising the Sewer Code, however with significantly modified and reduced residential water softener restrictions (Alternative Ordinance). The City Council accepted the first reading of the Alternative Ordinance with the limited residential water softener restrictions. In addition, the City Council considered and approved a Budget Adjustment of $20,000 to proceed with the Wellhead Water Softening Concept Study. (The Study was completed and the results and recommendations presented to the City Council at its regular meeting of July 10, 2017.) At its regular meeting of November 28, 2016 the City Council adopted on second reading the Alternative Ordinance. The Alternative Ordinance prohibits single tank and low efficiency automatic water softeners, and requires that by January 1, 2022 all such single tank and low efficiency automatic water softeners must be replaced with high efficiency water softeners having an efficiency rating of not less than 4,000 grains of hardness removed per pound of salt used in regeneration (or portable exchange tank systems). It is estimated that this Alternative Ordinance will result in a 20% to 30% reduction in salt loading to the WWTP.

III. DISCUSSION:

In accordance with previous City Council direction, staff is now recommending implementation of the Residential Water Softener Upgrade Rebate Program. It is currently estimated that approximately 1/3 of residences in Solvang utilize automatic water softeners, and about half of these are old and inefficient. Therefore, the proposed Program will significantly reduce brine discharge to the Solvang WWTP (and Santa Ynez River Groundwater Basin). In addition, the proposed Program will help expedite replacement of old inefficient automatic water softeners with new Code compliant high efficiency water softeners, and soften the financial impact to Solvang residents in complying with the City’s Sewer Code.

IV. ALTERNATIVES:

The City Council could direct staff to make changes to the propose Residential Water Softener Upgrade Rebate Program, or choose not to implement the Program at this time.

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V. FISCAL IMPACT:

The recommended budget to begin the Water Softener Upgrade Rebate Program in FY 2017-18 is $6,000. The cost to continue the Upgrade Rebate Program in FY 2018-19 is estimated at $34,000 for a total Program cost of $40,000. Staff recommends the City Council approve the attached Budget Adjustment in the amount of $6,000 to proceed immediately with the Upgrade Rebate Program.

VI. ATTACHMENTS:

1. Residential Water Softener Upgrade Rebate Program Guidelines 2. Residential Water Softener Upgrade Rebate Program Application Form 3. Budget Adjustment

64

of 3

City of Solvang

WATER SOFTENER UPGRADE REBATE PROGRAM GUIDELINES For our Water’s Sake, Please Upgrade Your Water Softener. Protecting our local groundwater supply is critical. Traditional self‐regenerating water softeners, the kind that use rock salt or potassium chloride pellets, pose a serious water quality problem for our community and local groundwater basin. On average a single conventional self‐regenerating water softener contributes as much as 50 pounds of salt each month to the Solvang Wastewater Treatment Plant and recharge facility. A high efficiency water softener contributes 16 to 25 pounds of salt/month. A sensor equipped ultra‐high efficiency water softener contributes 8 to 16 pounds of salt/month, which is up to 42 pounds less per month than a conventional unit. That salt ultimately ends up in our groundwater and water supplies. Salt is the single greatest constraint on our future ability to use groundwater, our most reliable and drought proof local source of water supply. The City of Solvang is launching a new program to help reduce the amount of salts and total dissolved solids (TDS) that end up at our Wastewater Treatment Plant and recharge facility. An Upgrade Rebate is being offered to Solvang residents who replace their existing conventional self‐regenerating (automatic) water softener with a new high efficiency or ultra‐high efficiency twin sensor water softener. To qualify for a rebate, you must either:

1. Replace an old salt‐using (automatic) water softener with a new SB1006 Compliant high efficiency or ultra‐high efficiency twin sensor water softener with industry best efficiencies, or

2. Replace your existing conventional automatic water softener with a salt‐free canister type (portable exchange tank) water softener.

SB1006 Compliant means that the water softener/conditioner removes at least 4,000 grains of hardness per pound of salt used in regeneration. The only SB1006 Compliant ultra‐high efficiency twin sensor water softeners allowed are the following: 1) PENTAIR, Model No. 9100TS; or 2) CULLIGAN, Model No. “Aquasensor”. Ultra‐ high efficiency twin sensor water softeners use up to 65% less water in regeneration and use up to 65% less salt than high efficiency water softeners. This conserves water and produces significantly less salt discharge to the City sewer system.

WHO CAN APPLY? Upgrade Rebates are available to all City of Solvang single family and multi‐family residential water‐sewer system customers that currently have an older conventional (non‐SB1006 Compliant) automatic water softener. HOW DO I APPLY? Residential water‐sewer system customers must submit a completed Application, with the required information attached, to the City of Solvang at 1644 Oak Street, Solvang, CA 93463; Attention: Utility Billing Clerk.

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The following documentation must be attached to your Application in order for the Application to be deemed complete:

1. A copy of your Water/Sewer Bill, 2. A photograph of the existing conventional (older) automatic water softener, and 3. A copy of the invoice for the new SB1006 Compliant high efficiency or ultra‐high

efficiency twin sensor water softener. 4. In the case of replacement of an existing conventional automatic water softener with a

salt‐free canister type (portable exchange tank) water softener, a copy of a 24 month Contract with a Water Treatment Dealer (Rayne, Culligan or Pure Water Systems) must be attached to the completed Application.

To be eligible for an Upgrade Rebate, an existing conventional self‐regenerating water softener must be in operation at the residence prior to replacement. With submittal of an Application, water‐sewer system customers agree to not re‐install a non‐compliant inefficient salt‐using automatic water softener at any time in the future. The Water Softener Upgrade Rebate Program will run through June 30, 2019, or until funding runs out, whichever comes first. HOW MUCH IS THE REBATE? The rebate is offered in the form of a credit on your Water Bill. You will receive a $400 Water Softener Upgrade Rebate Credit on your Water Bill, applied as a one‐time credit after passing the required visual inspection. HOW WILL I RECEIVE THE REBATE? Upon submittal to the City of a complete Application, the Utility Billing Clerk will verify eligibility and completeness of your application, and if deemed eligible and complete, the Utility Billing Clerk will accept your application. You must then contact the City Wastewater Inspector for a visual inspection. The water softener upgrade rebate will appear as a credit on your Water Bill within one month of passing the required visual inspection. To pass the visual inspection the new water softener must be in service and operating properly at the time of inspection. In the case of replacement of an existing conventional automatic water softener with a salt‐free canister type (portable exchange tank) water softener, to pass the visual inspection, the portable exchange tanks must be installed and operating properly at the time of inspection. With submittal of an Application, water‐sewer system customers agree to not re‐install a non‐compliant inefficient salt‐using automatic water softener at any time in the future. DO I NEED AN INSPECTION? Yes. Both upgrade to a High Efficiency/Ultra High Efficient Twin Sensor Water Softener, or replacement of an Automatic Water Softener with Portable Exchange Tank Water Softener require a visual inspection. A visual inspection is required to confirm compliance. With submittal of an Application, the customer is agreeing to allow the City Wastewater Inspector to

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retrieve performance history data from the water softener after the water softener has been in service for 12 months. HOW DO I GET AN INSPECTION? After you have confirmed your Application has been accepted, call the City Wastewater Inspector at (805) 688‐6997 to schedule an appointment for a visual inspection. In most cases the Wastewater Inspector will be able to schedule the inspection within three weeks of your call. FURTHER QUESTIONS If you have further questions call the City's Utility Billing Clerk at (805) 688‐5575.

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City of Solvang ‐ Water Softener Upgrade Rebate Program

Please complete ALL sections of this Application Form, print, sign and mail to:

City of Solvang, Water Softener Rebate Program, 1644 Oak Street, Solvang, CA 93463 Attn: Utility Billing Clerk

Property Type, Choose One:

Single Family Residence Apartment Building

Condominium Townhome

First and Last Name: ______________________________________ E‐mail: ____________________________________

Address: _____________________________________ City: Solvang State: CA Zip Code: 93463

Home Phone: ________________________ Cell Phone: _______________________

Mailing Address: ______________________________ City: ________________ State: ______ Zip Code: _________

Information on Existing Salt‐Based (Self‐Regenerating) Water Softener

I had water softener installed at this home Water softener came with home when purchased

Is water softener working? Yes No

I am replacing my salt‐based water softener with a salt‐free portable exchange tank unit.

Example: Rayne, Culligan, or Pure Water Systems

I am upgrading my old salt‐based water softener with a new SB1006 Compliant high efficiency water softener.

I am upgrading my old salt‐based water softener with a new SB1006 Compliant ultra‐high efficiency twin sensor water softener.

Make: ________________________ Model: _____________________________ Installation date: _______________

This Application is for owners of residential salt‐based water softeners located within the City of Solvang. To be eligible for a rebate, an existing salt‐based water softener must be in operation at the residence prior to replacement. Your rebate credit will be issued within one month of successfully passing the required visual inspection. See Program Guidelines for further details.

I have read and understand the terms and conditions of the Water Softener Upgrade Rebate Program as defined in eth Program Guidelines. I agree to allow the City Wastewater Inspector to retrieve performance history data from my new water softener after the water softener has been in service for 12 months. I certify under penalty of perjury that the information I have provided is true and correct.

Signature: _____________________________________________ Date: ____________________

I am requesting a rebate in the amount of $ ___________________

(After approval, please allow one month to receive your rebate credit.)

Necessary Documents:

Copy of a recent City of Solvang Water/Sewer Bill Photograph of existing old salt‐based water softener

Copy of invoice for new SB1006 Compliant high/ultra‐high efficiency water softener

Copy of Rayne/Culligan/PW Systems portable exchange tank Contract (if applicable)

CITY PORTION

Customer eligible and Application deemed complete Clerk’s signature:

Visual Inspection: Date: Inspector’s approval signature:

Rebate Credit applied to Water Bill Clerk’s signature:

Application Form

68

City of SolvangBudget Adjustment Request

Agenda Item MO/YR Number

01/18 18-04Dept: Public Works - Wastewater

Decrease/ Increase Account/ Project Name Fund Dept Prog. Object Description

Current Budget AMOUNT Revised Budget

Decrease Increase

0

0

00

-$ -$ -$ -$

Total Revenues Increase (Decrease) -$

Decrease/ Increase Account/ Project Name Fund Dept Prog. Object Description

Current Budget AMOUNT Revised Budget

Decrease Increase

IncreaseWastewater Rebate Programs 501 5300 503 70938 Water Softener Rebate Program 0 6,000 6,000

0

0

0

0-$ -$ 6,000$ 6,000$

Total Expense Increase (Decrease) 6,000$

Date: 1/17/18

Date

Date

Date

DatePosted by:

Admin. Services Director:

City Manager:

City Council Approved:

Revenue Adjustments

Expense Adjustments

EXPLANATION:

Water Softener Rebate Program Prepared By: Sandra Featherson

Budget Adjustments for FY 17-18 Last revised: 1/17/201869

CITY COUNCIL STAFF REPORT/ CONSENT AGENDA

TO: SOLVANG CITY COUNCIL MEMBERS FROM: Fred Lageman, Parks and Recreation Director MEETING DATE: January 22, 2018 DATE PREPARED: January 16, 2018 SUBJECT: DONATION OF PARKS MOWER TO SYV YOUTH RECREATION I. RECOMMENDATION:

Donate a surplus ride-on lawn mower from the Parks Department to Santa Ynez Valley Youth Recreation.

II. DISCUSSION: Santa Ynez Valley Youth Recreation has supported the City of Solvang and the Parks and Recreation Department for many years. Through their annual queen campaigns and fundraisers they have raised money that support youth recreation throughout the Santa Ynez Valley. The City of Solvang has been direct recipients of those donations most noticeably at Sunny Fields Park with the installation of the City’s only softball field and large turf area. SYV Youth Recreation also recently installed three sand volleyball courts at Sunny Fields Park just last year. They contribute annually to the department’s Halloween Haunted House production and has also made scholarships available to the summer camp programs.

The Parks Division recently replaced a 2003 John Deere commercial mower with funds from the City’s equipment replacement program. The mower was then put on the City’s surplus equipment list and advertised as for sale. The City has not received any offers or requests to view the mower in approximately three and a half months. The next step would be to offer the equipment to a liquidation service, which charges a $200 fee and takes 10% of the sales price.

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SYV Youth Recreation is in need of a mower to help maintain the fields used for youth soccer and youth baseball on the fields of the Santa Ynez school campus. The Parks and Recreation department and the City Manager believe that the City could donate the surplus John Deere mower to SYV Youth Recreation to assist their efforts in continuing to provide recreational opportunities to the kids of the Santa Ynez Valley.

III. ALTERNATIVES:

Continue the process of hiring a liquidation service to sell the mower.

IV. FISCAL IMPACT:

Potential loss of income if the mower were to sell for more than $220, which would cover the liquidator’s fees.

V. ATTACHMENTS:

N/A

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CITY COUNCIL STAFF REPORT

TO: SOLVANG CITY COUNCIL MEMBERS FROM: Matt van der Linden, Public Works Director/City Engineer MEETING DATE: January 22, 2018 DATE PREPARED: January 11, 2018 SUBJECT: CITY HALL & FIRE STATION VEHICLE WASH PAD I. RECOMMENDATION:

Provide staff direction on construction of the proposed City Hall & Fire Station vehicle wash pad.

II. BACKGROUND:

The concept of a vehicle wash area for City and County Fire Department vehicles was first conceived in 2009. The goals of the proposed project are the following:

1. Provide a concrete wash pad to prevent deterioration of asphalt pavement, 2. Prevent stormwater runoff violation by collecting and treating runoff to

prevent soap, oil, grease and dirt from entering the storm drain system and local creeks,

3. Provide a location that is convenient for County Fire Department use, 4. Provide a location that is convenient, cost effective and time saving for City

staff to use, and 5. Provide a location that is convenient, cost effective and time saving for

SYVT staff to use. In 2009 several locations were considered and the location adjacent to the Fire Station along the south driveway of the City Hall-Fire Station building was identified as the optimal location to meet all project goals.

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Due to budgetary constraints the proposed vehicle wash pad project was postponed several years. Finally in the June 2014 the proposed project was formally added to the City’s 10-Year Capital Improvement Program. Most recently, the proposed project was scheduled for FY 2018-19. However, as construction of the Fire Station remodel (to accommodate the extra-long ladder truck) was underway, it was determined that cost savings could likely be achieved if the vehicle wash pad was constructed simultaneous with the associated parking lot modifications. Therefore, the vehicle wash pad was added to the Various Road Repairs & Concrete Work Project as an additive (optional) bid item. Since the bids came in much lower than expected, sufficient funds were available to complete the vehicle wash pad at this time at a cost of $14,100. See attached Existing Vehicle Wash Pad Site Plan.

III. DISCUSSION:

At the regular City Council meeting of January 8, 2018 during public comment two individuals, including the neighboring resident, spoke in protest to the proposed vehicle wash pad. As a result, the City Council directed staff to hold off the proposed construction, and return with a report on the proposed vehicle wash pad for their further review. The City Council further directed staff to consider alternative locations for the vehicle wash pad. Staff has considered multiple alternative locations for the vehicle wash pad including locations within the City parking lots, City parks, and alley ways. The only feasible and effective alternative identified by staff is to move the proposed vehicle wash pad 75’ east of its currently proposed location (5’ off of Odby Alley). With the proposed 30’ long wash pad located 5’ off Odby Alley, this would locate the wash pad 53’ away from the adjacent residence and next to the rear garage of the residence. See attached Alternative Vehicle Wash Pad Site Plan, and photos. The existing hose bib is located immediately behind the sidewalk along Second Street. Therefore, relocation of the hose bib would be required with this alternative location. No other viable alternatives have been identified that are able to meet all of the project goals. Staff recommends that one of these two locations be selected, or that the proposed project be cancelled.

IV. ALTERNATIVES:

As mentioned above, the only feasible and effective alternative is to move the proposed vehicle wash pad 75’ east (5’ off of Odby Alley). With the proposed 30’ long wash pad located 5’ off Odby Alley, this would locate the wash pad 53’ away from the adjacent residence and next to the rear garage of the residence. No other viable alternatives have been identified that are able to meet all of the project goals.

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V. FISCAL IMPACT:

There is no fiscal impact to proceeding with the two viable locations identified or to cancelling the proposed vehicle wash pad project.

VI. ATTACHMENTS:

A. Existing Vehicle Wash Pad Site Plan B. Alternative Vehicle Wash Pad Site Plan C. Site Photos D. Aerial View Photo

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ATTACHMENT A

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ATTACHMENT B

GarageHouse

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SCALE: 1• = 20'

SANTA BARBARA COUNTY FIRE STATION 30

SOLVANG

4" INLINE PLUG VALVE (BY OTHERS)

INSTALL 12" x 24" CONCRETE DRAIN BOX WITH TRAFFIC RA TED GRATE. 2' DEEP WITH 4" OUTLET PIPE 6" ABOVE BOTTOM. FILL BOTTOM OF DRAIN WITH 1" ROCK TO BOTTOM OF OUTLET.

DATE 8/31/2017 Project:

CITY HALL 1644 OAK STREET

PW 105

RECOAT EXISTIN AND INSTALL N STRIPING & MAR

INSTALL NEW PLANTER CURB AND 1' SLOT PAVING.

4" SEWER LATERAL (BY OTHERS)

VARIOUS ROAD REPAIRS & CONCRETE WORK APPENDIX

C DESIGNED ___ t-c~=it~/e:------------------------4-------1 DRAWN Ff15 CITY HALL PARKING LOT IMPROVEMENTS PROJECTNO.

CHECKED t1J.V, & CAR WASH PW 105

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Driveway Along South Side of Fire Station-City Hall Adjacent House & Garage Visible on the Right Side of Driveway

(View Looking East from Second Street)

Adjacent House Behind New Wood Fence and Garage in the Distance

ATTACHMENT C

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Propose Vehicle Wash Pad Location

Alternative Vehicle Wash Pad Location (View Looking West from Odby Alley)

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ATTACHMENT D

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TO: SOLVANG CITY COUNCIL MEMBERS FROM: Matt van der Linden, Public Works Director/City Engineer MEETING DATE: January 22, 2018 DATE PREPARED: January 16, 2018 SUBJECT: PROPOSED TROLLEY SHADE STRUCTURE I. RECOMMENDATION:

Provide staff with further direction regarding the proposed trolley shade structure. II. BACKGROUND:

At the March 27, 2017 City Council meeting a Horse Drawn Conveyance License was approved with the operator, Solvang Trolley. Also, a request was made by the operator for a modification of the language in the “Pickup Locations” paragraph of the License. The License calls for a shady pickup location to be utilized (within the public right-of-way) when the temperature exceeds 85 degrees Fahrenheit. At that time the City Council did not modify the License and told the operator to work with staff to look for alternative areas. Staff identified multiple alternative locations within the right-of-way, but because of visibility concerns the preferred location of the operator is somewhere along Copenhagen Drive. Staff was not able to determine a location along Copenhagen Drive that was acceptable to all parties: the City, adjacent businesses, and the operator. Therefore, staff brought a report to City Council at its July 24, 2017 meeting presenting the Solvang Trolley’s request that a shaded area west of Second Street on the south side of Copenhagen Drive be added to the License as an assigned pickup location for the days that are anticipated to exceed 85 degrees Fahrenheit. The City Council approved temporary use of the west side of City Parking Lot 2 (requiring loss of 7 parking spaces), and directed staff to investigate the layout and

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cost of a possible permanent shade structure along Copenhagen Drive or the south end of Parking Lot 2. At the December 11, 2017 City Council meeting, staff presented preliminary site layout plans and cost estimates for two alternative permanent trolley shade structures: 1) at the existing trolley pickup location along Copenhagen Drive, and 2) along the south side of Parking Lot 2. A steel framed structure with fabric shade roof was selected to match the style of the arbor structure in Centennial Plaza along Alisal Road. This concept was also considered to be the most durable and cost effective permanent structure type. Cannon Associates estimated cost of a permanent shade structure including engineering design, construction and contingency for each option is: Option 1: $82,500; and Option 2: $96,800. Due to this higher than expected cost for a permanent structure the City Council directed staff to look into less expensive temporary structure options that might include sleeves in Copenhagen Drive.

III. DISCUSSION:

Staff worked with Cannon Associates to develop a lower cost light-weight temporary structure concept. The light-weight shade structure would provide shade for the horses only, consist of aluminum framing and canvas fabric, and be anchored in sleeves in the pavement and sidewalk at the existing pickup location along Copenhagen Drive. See Attachment A. Although relatively light-weight, it is envisioned that this structure would be set up in mid-June and stay up through mid-September each year. Cannon Associates proposal for engineering design of the temporary shade structure is $15,800. This includes developing concept schematics for BAR review and approval, structural calculations, and preparing final plans, specifications & cost estimate. A rough estimate of the construction cost is approximately $40,000. Staff is requesting direction from City Council on any further action you would like staff to take regarding the proposed trolley shade structure. In the past the City has not made improvements on public property for the benefit of a commercial business. Unlike the proposed permanent shade structure, the lower cost light-weight temporary structure would not include any public benefit.

IV. ALTERNATIVES:

An alternative approach to obtain a low cost light-weight temporary shade structure would be to work directly with a local welder, and have the welder design and fabricate the aluminum shade structure. It is estimated that a similar shade structure that provides shade for the horses only, consists of aluminum framing and canvas fabric, with the structure anchored in sleeves in the pavement could be constructed for approximately $25,000. This light-weight structure could be assembled and dis-assembled whenever high heat is forecast. However, a significant drawback to

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this approach is that it would not include structural calculations taking into consideration things such as wind loading. Staff does not recommend that the City assume this liability risk. The City Council could choose to table this item and not pursue a trolley shade structure at this time, or provide staff other direction.

V. FISCAL IMPACT:

Approximately 24 man-hours of staff time has been expended on the proposed trolley shade structure since the July 24, 2017 City Council meeting. In addition, $5,306 for the preliminary design and cost estimates was used from account 100-1600-720-70614 which was intended for the Second Street Drainage Improvements. There is currently no funding for the design and construction of the proposed trolley shade structure in the FY 2017-18 Budget. Due to the Engineering Divisions current heavy work load, and dealing with some unplanned projects such as Skytt Mesa traffic calming measures and the proposed Sunny Fields Spur Bike Trail Alignment Study, it would impossible to complete design and construction of the proposed shade structure by this summer unless other priority projects were delayed. Funding could be proposed in the FY 2018-19 Budget.

VI. ATTACHMENTS:

A. Light-Weight Aluminum Shade Structure Preliminary Sketch

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TO: SOLVANG CITY COUNCIL MEMBERS FROM: Brad Vidro, City Manager MEETING DATE: January 22, 2018 DATE PREPARED: January 16, 2018 SUBJECT: MISSION VIEW APARTMENTS DEVELOPMENT PROJECT FEES

AND APPLICATION TIMELINE I. RECOMMENDATION:

Review project timeline and fees. II. DISCUSSION:

At the January 8, 2018 City Council meeting, Councilmember Waite requested a future discussion item on the Mission View Apartments proposed project. Attached is a timeline of the events/emails/meetings that occurred since staff was initially contacted in January of 2017. Also attached is the incomplete letter sent to the developer which includes an estimate of identifiable fees. A development project of this scope and size falls under Section 11-16-4 of the Solvang Municipal Code which is attached to this staff report. When staff is contacted by developers they provide what information is available based on the developer’s description of the proposed project. In this case the original concept was condominiums and during the process it was changed to apartments, which is not unusual as a variety of factors affect what may be the best and most economic use of a property. Until an application is submitted, including application fees to pay for the processing, staff does not have a complete description of the project. As can be seen, the requirements in the City Code for a Development Plan require a very detailed list of what is needed. Until a complete application is received, staff cannot begin the environmental review process that is required by the California Environmental Quality Act (CEQA). The developer has not submitted a complete application as of this time. The environmental review process is what determines the impacts a project will have and identifies measures that will be required to mitigate those impacts.

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The Mission View Apartments project is located at 1783/1793 Mission Drive. The City of Solvang’s sewer system consists of seven major trunk lines which feed to the lift station at the end of Fjord Drive where it is pumped under the Santa Ynez River to the Wastewater Treatment Plant. The proposed project would result in additional wastewater utilizing the North Alisal trunk line. A study of the City’s Sanitary Sewer Adequacy was completed in 1988 and identified this trunk line would experience overloading due to inadequate capacities when sufficient developments occur. Based on this, staff required the Solvang Senior Apartments (45 units) project that is across Maple Avenue from the proposed Mission View Apartments to evaluate their impact on the trunk line and to identify the most overloaded section. They were required as part of their conditions of approval to upsize the sewer main along Alisal Road from Mission Drive to Maple Avenue. The developer of the Mission View Apartment project was informed that this same requirement would be placed on the project. They did not want to pay for a study and asked the City to identify the section that would need to be upsized and wanted an exact cost of what that project would entail. Staff prepared an estimate for rerouting a section with a larger pipe at a cost of $244,000. This was provided to the developer on October 25, 2017. It should be noted that since the 1988 Study there has been limited development that contributed additional flow to the North Alisal Road trunk line. The use of regular cleaning of the collection system has allowed for the undersized system to operate with overflows. Staff’s requirement for upsizing the sewer line is in conformance with City Code Section 11-4-1: C. Prior to issuance of a land use permit, the city shall make the finding, based on information provided by environmental documents, staff analysis and the applicant, that adequate public or private services and resources (i.e., water, sewer, roads, etc.) are available to serve the proposed development. The applicant shall assume full responsibility for costs incurred in service extensions or improvements that are required as a result of the proposed project. Lack of available public or private services or resources shall be grounds for denial of the project or reduction in the density otherwise indicated in the general plan. Another issue that the developer has talked to staff about is the desire to have all requirements and fees identified prior to project approval. This is not possible due to the fact that a development project in the State of California must go through the CEQA process which determines the environmental effects of the project and identifies measures to mitigate any negative impacts. These get included in the project’s conditions of approval. For example, a project may have traffic impacts that require upgrades to existing roadway facilities. Without the impact fully identified staff cannot tell the developer what they will need to do to mitigate it, or the cost of that mitigation. Staff makes its best effort to determine fees for a proposed project early on but many times the project changes. In this case it was originally proposed as condominiums and then changed to apartments. It can also change in size by either becoming larger in scale or smaller in scale. Any of these factors affect what the fees and mitigation measures will be, for example a condominium is processed as a subdivision map and apartments are not. Until a complete application is submitted and the environmental review begins changes can be made by the developer which would change any fee estimate that staff had provided.

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III. FISCAL IMPACT:

There is no fiscal impact with providing the timeline. If the City Council directs staff to design and construct sewer main upsizing the cost would be approximately $250,000.

IV. ATTACHMENTS: • Timeline • Email to Developer including sewer upgrade requirement dated February 28, 2017 • Email from Developer’s representative indicating close of escrow dtd. March 30, 2017 • Incomplete letter with Fee/Cost Estimate • Revised Cost Estimate dated October 11, 2017 • Cost Response letter from Developer dated October 30, 2017 • Sewer Impact and cost/option letter to Developer dated October 31, 2017 • City Code Section 11-16-4

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Time line Mid-January 2017- Matt received call from Yvette Moniot regarding proposed high-end condominium project at old Solvang Lumber Yard. Yvette explained she was the developer’s representative. Yvette had a few questions about existing utilities and requested utility maps/record drawings for water and sewer facilities. January 24, 2017- Meeting between Holly Owen, Brynda Messer & Yvette Moniot. Developer’s representative asked for general location of water and sewer on Maple and Mission Drive. January 25, 2017- Matt sent Holly record drawing for the water and sewer improvements along Maple Avenue that had been completed by the Senior Apartments developer. These were emailed to applicant by Holly. January 31, 2017- Frank Saunders sent Holly record drawings for water facilities along Mission Drive, and utility map (from GIS) showing water and sewer facilities along Mission Drive. These were emailed to applicant by Holly. February 1, 2017- Meeting between city staff and developer (Mitch Williams, Yvette Moniot, Holly Owen, Matt van der Linden, Brad Vidro, Brynda Messer, and Lisa Martin) to discuss proposed high-end condominium project. Matt discussed water and sewer upsizing improvements that would be required at this meeting. Yvette Moniot was confirmed as the point of contact.

February 2, 2017- Matt sent Holly water meter information and sewer atlas map (from GIS). These were emailed to applicant by Holly. February 7, 2017- Email from Holly Owen to Yvette Moniot asking for status of purchase and offer to provide any other information that they needed at that time. February 16, 2017- Email from Holly Owen to Yvette Moniot asking for a status update on the project. Response from Yvette Moniot is that ‘the property purchase is outside her purview.’ February 28, 2017- Email from Holly Owen to Yvette Moniot with written statement by Matt van der Linden indicating the developer would need to identify the most severely surcharged section of sewer and replace/upsize them, estimated at approximately 500’ going from 8” to 15” diameter. March 30, 2017- Staff received email from Carl Schneider indicating Mission View Partners, LLC had closed escrow on the properties at 1783/1793 Mission Drive and that the new contact person would be Elsa Reader of CSA Architects. A draft project description (changed to market rate apartments) and site plan were included, indication that those would be replaced with revised ones the next week for submittal to BAR. April 13, 2017- BAR meeting. Conceptual approval of Mission style design for project. April 26, 2017– Meeting with Elsa Reader, Carl Schneider, Brynda Messer, Holly Owen, Matt Van der Linden & Lisa Martin. Planning staff discussed parcel validity and the need for a historic resources report, environmental review process and requirements. Upsizing of sewer discussed as well as parking, pool location, architecture, etc.

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August 2, 2017- Development Plan application received by City. The submittal included a Historic Resources report. August 17, 2017- Matt sent e-mail to Brynda and Holly with additional preliminary comments regarding proposed project including requirement for additional right-of-way dedication along Mission Drive. August 24, 2017- Development Review Committee Meeting. Holly Owen, Brynda Messer, Brad Vidro, James Contreras (SB Fire), Mitch Williams, Carl Schneider, Elsa Reader, Lisa Martin, Matt Van der Linden: Issues discussed, need for sewer upsizing, sidewalk, hydrants, access to Mission Drive, pool location, architectural design and additional ROW dedication along Mission Drive. August 31, 2017- 30-day completeness letter sent to developer in accordance with State CEQA processing requirements. Included a Cost Estimate of fees. The project was deemed to be Incomplete as revisions to the plans were necessary as well as the submittal of additional information. September 18, 2017- Meeting between Brad Vidro, Mitch Williams, Elsa Reader & Carl Schneider. Developer requested additional information on Parcel validity request, missing Building file on 1783 Mission Drive, Sewer study/main upsizing requirement, location of water connection and fire hydrant relocation requirement, Right of way along Mission Drive and lot line adjustment, concurrent processing. September 21, 2017- Brad Vidro responded to request and provided copy of the Sewer Study. October 2, 2017- Planning Commission meeting. Conceptual review of proposed project -Comments on project design, density, parking, pool location, and overall view of project from Mission Drive. October 11, 2017- Revised estimate of fees provided to developer utilizing square footage of most recent set of plans. October 19, 2017- Matt sent Holly e-mail confirming traffic study will be required as is typical for any large project. October 19, 2017- Meeting between Brynda Messer, Holly Owen, Matt van der Linden, Brad Vidro, Elsa Reader, Carl Schneider. Discussions: Parcel validity and Cert of Compliance, fees, upsizing the two sections on Alisal with two options (City does work and is reimbursed or applicant does work). CSA requested detailed cost estimate for scenario #2. Hydrant also discussed, Caltrans’ role in project, pool location, parking requirements. October 24, 2017- In an effort to assist the developer, Matt completes preliminary cost estimate for required sewer improvement options (replace or realign two segments of deficient sewer line). Matt communicates cost information to Holly. October 25, 2017- Email from Holly Owen to Elsa Reader, Carl Schneider, Mitch Williams detailing the estimated cost of $244,000 to cover the required sewer upgrade. October 30, 2017- Receipt of letter from Applicant in response to October 25th email.

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October 31, 2017- Letter from Holly Owen to applicant in response to applicant’s October 30 letter. November 3, 2017- In response to e-mail from developer’s engineer, Matt sent e-mail to engineer providing additional details of sewer line upsizing requirements. November 29, 2017- Brynda Messer, Lisa Martin, Elsa Reader, Matt Van der Linden, Brad Vidro, Mitch Williams. Fees again discussed, also hydrant location. Wanted to know about sewer study and necessity of that. Applicant said that 1988 Sewer Study was outdated. Brad Vidro said that Council can allow use of mitigation fees towards sewer upsizing.

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Planning/Community Development Department

Holly Owen, AICP Planning & Economic Development Director

[email protected]

Brynda Messer, Assistant Planner [email protected]

411 Second Street, Solvang, CA 93463

(805) 688-4414, Fax (805) 693-1070 August 31, 2017 Elsa Reader CSA Architects 330 E. Canon Perdido Street, Ste. A Santa Barbara, CA 93101 Re: Determination of Application Incompleteness

Mission View Apartments Development Plan 1783-1793 Mission Drive, APN: 139-150-027 and -017

Dear Ms. Reader: Thank you for your Development Plan submittal dated August 2, 2017. We have reviewed your application for a 42-unit apartment complex with associated parking, carports, pool, and recreation room, and found it to be incomplete pending submittal of additional information. The information is necessary to accurately assess the proposed project's environmental impacts and consistency with applicable State and City regulations. Specifically, the following is needed to complete your application:

1. Please provide a site topography survey performed by a licensed surveyor. The survey should show all existing trees, structures and easements. Please indicate diameter and species on all trees, and label as to whether or not the tree is proposed for removal. Please label each structure as to whether or not it is proposed to be demolished. Please show lot lines. Additionally, show location and use of all buildings and structures within 50’ of the boundaries of the property.

2. The following additional information is required to be shown on the project plans: a. Add property metes and bounds to site plan. b. Please provide a complete scope of work (project description) on the cover sheet. c. Provide gross and net acreage of the site. d. Provide square footage and percentage of new impervious area. e. Please renumber architectural sheets, as there are three sheets marked AS, and update

the Table of Contents. f. Provide a site plan sheet showing the entire width of Mission Drive in relation to the

project to confirm setbacks. Show the centerline of Mission Drive. Please clarify whether the ROW line matches the property boundary line.

g. Separate drainage plans from grading plans and provide legends for each. h. Please include a separate contour map showing topography, including existing natural

contours and proposed grading lines.

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mailto:[email protected]

Ms. Elsa Reader August 31, 2017 Page 2

i. On Sheet C-4, a four-foot retaining wall is shown which is not reflected on the site plan. Please show the retaining wall on the site plan.

j. Please show areas of cut and fill on sheet C-4. k. On Site Coverage section of cover sheet, please break down site coverage areas to

reflect gross and net total land area. l. Relocate pool equipment outside of the required 10’ setback. m. Please add actual dimension of height to Sheet 1.4. n. Redesign pool and recreation building area so that the recreation building is closer to a

property line and the pool is nearer to site interior. o. Label height and length of all existing fencing. Indicate whether new fencing is

proposed and, if so, type and height. p. No lighting of the parking areas or pathways is shown on the plans. Please show all

proposed exterior light fixtures within the project. Please show the location of the lights or lamps and the type of fixtures to be used. Proposed exterior lighting must be dark sky compliant, with light source fully hooded and shielded.

q. Show all mechanical equipment on plans, including all HVAC equipment. r. In accordance with 11-6B-5(a, b), please provide a five-foot wide strip, planted with

sufficient shrubbery to effectively screen the parking area to a height of four feet, or, alternatively, provide a solid fence or wall not less than four feet in height. Plantings, fences or walls abutting streets shall not exceed thirty inches in height for a distance of 25 feet on either side of entrances or exits to the property.

s. Clarification is necessary on Sheet TP-01. A legend is required as to trees to be removed or saved and protected.

3. Please add a calculation of total annual water usage in acre feet to the water use calculations.

4. Please provide the following improvement plans: • Grading, Site Drainage and Erosion Control Plan. Please include APCD requirements for mitigation of fugitive dust on grading cover sheet. • Street Improvement Plan (for Mission and Maple) • Water and Sewer Improvement Plan. Please show a 6” fireline connected to Mission

and Maple and all existing and proposed fire hydrants. • Storm Water Control Plan.

5. Show site access route during construction, location of the construction staging area, and location of the concrete/stucco/paint wash-off area.

6. Please provide photo-simulations of the new buildings on the site from Mission Drive from a location approximately 50-100 feet to the east (approaching the project from Alamo Pintado just past Pine Street) and from the frontage at Mission Drive.

7. Provide the estimated number of potential residents for the project.

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ADVISORIES

1. The project received conceptual approval for architecture and design from the Board of Architectural Review April 13, 2017. They agreed on the use of Mission-Style Architecture. In accordance with Section 11-16-4-C.8, please provide a statement and design showing how the proposed development conforms to the architectural theme of the area, including items A-N (see Attachment A).

2. In accordance with 11-16-4 (9-12), please submit the following:

• A statement of intent with respect to the establishment of utilities, services and facilities including water, sewage disposal, fire protection, police protection, schools and transportation, i.e., access, proximity to public transit or provision of bike lanes, etc.

• Measures to be used to prevent or reduce nuisance effects, such as noise, dust, odor, smoke, fumes, vibration, glare, traffic congestion and to prevent danger to life and property.

• If development is to occur in stages, the sequence and timing of construction of the various phases.

• Proposed public access to recreational areas, trails or streets to be dedicated to the city. 3. The Public Works Director has preliminarily estimated that two new 1-1/2” water meters

will be necessary to serve domestic use, as well as a new 3/4” irrigation meter. The applicant will receive a credit of $8,740 for the existing 5/8” water meter on site, as well as a $4,673 credit for the existing sewer connection.

4. Planning staff has expressed concerns regarding the initial site plan submittal, including

the site layout, parking configuration, location of the pool and recreational building and the need for a courtyard, fountain or other visual highlight, especially in light of the highly visible Mission Drive corridor, and the project’s proximity at the entrance to the Village Area. Planning Commission conceptual review will serve to address these issues.

5. Re-submit for the voluntary lot merger. Clarify if the right-of-way dedication along

Mission Drive will be addressed on the lot merger.

6. Your project includes proposed compact parking spaces. The Zoning Ordinance allows compact spaces only in nonresidential developments. A modification of the parking requirements would be required to allow compact spaces. Staff will seek support for this modification during Planning Commission conceptual review. Additionally, there are requirements for EV charging stations under the Green Building Code. Although the City does not permit parallel parking as part of meeting parking standards, the City would consider allowing the proposed 5 spaces along the western property line to be used for EV charging stations.

7. Please contact Waste Management to confirm sizes and number of waste and recycling

receptacles and proposed locations within the development.

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8. In reviewing the Solvang Sanitary Sewer Adequacy Study, the Public Works Director determined that an analysis of the section of the city sewer system that would serve the parcel is required. The most severely surcharged sections of sewer line should be identified. Replacement/upsizing of approximately 500 linear feet of existing sewer line with line of adequate capacity will be required.

9. The project will require a Storm Water Pollution and Prevention Plan prepared by a civil

engineer certified as a CASQA-qualified SWPPP developer or practitioner.

10. All environmental documents prepared must be sent to the Department of Fish and Wildlife for review and comment. A filing fee of $2,266.25 will be required.

11. Please provide a Phase 1 Environmental Assessment study for the site. This study will be

necessary to determine the level of the environmental review required for this project.

12. Please provide the following documents (items 3, 4, 6, and 7) referenced in the preliminary title report: Instrument No. 12946 (1954), Instrument No 1990-29284, Instrument No. 2008-32723, and the map recorded in Book 210, Page 98 of Record of Surveys.

13. Dedication of additional right of way is required to complete the necessary sidewalk

improvements, which must be completed to City standards although Caltrans may have additional requirements. The Public Works Director will require brick sidewalk to match the adjacent properties. Additional review by Caltrans will be necessary before the project is deemed complete. Please submit the project to Caltrans for review and provide the City with Caltrans’ comments on the project.

14. The remaining driveway fronting Mission Drive shall be improved to ADA standards.

15. Your project is subject to the Central Coast Regional Water Control Board Post-

Construction Requirements (PCRs). Please submit a Drainage Report addressing post-construction containment and runoff management and demonstrate the project’s ability to contain a 95th percentile storm. The Stormwater Technical Guide for Low Impact Development should be used to comply with these requirements.

16. Your project must comply with the State Department of Water Resources’ Model Water

Efficiency Landscape Ordinance.

17. An Arborist Report may be required for trees indicated to remain but located within 25 feet of structural development.

18. A $1,211.67 Housing Element EIR Rezone fee is due for each parcel, as well as an Initial

Study fee of $1,057.00. Please include a check in the amount of $3480.34 payable to the City of Solvang with your resubmittal.

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19. Your project will be subject to development impact fees including Traffic Mitigation, Drainage, and Water and Sewer Connection fees. Please return the signed Cost Estimate with your resubmittal (Attachment B).

20. Your project must comply with the Building Department comments as outlined in

Attachment C, dated August 23, 2017.

21. Your project must comply with the Santa Barbara County Fire Department comments as outlined in Attachment D, dated August 31, 2017.

22. Please see Attachment E for information about time limits established for the review and

approval of development permits pursuant to GC §65940-65945.7.

We hope to schedule your project for conceptual review by the Planning Commission as soon as possible. We understand your need for their feedback to move the project forward. Upon receipt of the abovementioned photo-simulations (item #26) and six (6) sets of plans we would be happy to schedule that conceptual review. Please bind the architectural, landscape and grading plans together in a complete set, and update the table of contents accordingly. Please hold all response items until you feel that you have a complete package that addresses all incomplete items. We will only consider and accept a complete resubmittal. We encourage you to set up an appointment with us when you are ready to submit this information. If you have any questions regarding this letter, please call me at (805) 688-4414 x219. I look forward to working with you on this project. Sincerely, Holly Owen Planning & Economic Development Director Attachments cc: Brad Vidro, City Manager Matt van der Linden, Public Works Director Bridget Elliott, Associate Engineer Glen Fidler, SBCO Fire Department

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TYPE: AGENCY: FEE: TIME DUE:Fire Protection Certificate + Mitigation Fees

County Fire $536.00 + $0.75 per square feet

Before Land Use Clearance

Land Use City Planning $1,021.00 Before Land Use Clearance

Addressing County Fire $45.00 + $2 per apartment unit


Water Connection Fee

City $91,747.00 (based on two 1-1/2" domestic meters and one 3/4" irrigation meter minus credit for existing)

Before Occupancy Clearance

Sewer Connection Fee

City $42,059.00 (based on two 1-1/2" domestic meters, minus credit for existing)

Before Occupancy Clearance

Traffic Mitigation Fee

City $3,067.00 (per peak hour trip)


Building Permit Fee

City Building Unable to estimate at this time

Before Building Permit

Grading Permit Fee

City Public Works

2% of estimated value of grading/drainage work

Before Grading Permit

Environmental Review and Traffic Study

City $16,540.00 At time Application is deemed Complete

Drainage Impact Fee

City $500.00 Before Land Use Clearance

School Fees Districts $2.87 per sq ft Before Building Permit

TOTAL FEES: $152,532 not including Grading or Building Permit fees or Traffoc or Fire Mitigation or School fees

Date: _______________________

Owner Name: __________________________ Signature: _________________________

COST ESTIMATE FOR Mission View Apartments31-Aug-17

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_

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Assumption: 43,704 Residential, 730 SF recreation room

TYPE: AGENCY: FEE: TIME DUE:Fire Protection Certificate + Mitigation Fees

County Fire $536.00 + $0.75 per square feet*

Before Land Use Clearance Total SF 44,434 x .75=33,325.50

$33,325.50

Land Use City Planning $1,021.00 Before Land Use Clearance $1,021.00

Addressing County Fire $45.00 + $2 per apartment unit

Before Land Use Clearance 84 + 45=$129.00 $129.00

Water Connection Fee

City $91,747.00 (based on two 1-1/2" domestic meters and one 3/4" irrigation meter minus credit for existing)

Before Occupancy Clearance $91,747.00

Sewer Connection Fee

City $42,059.00 (based on two 1-1/2" domestic meters, minus credit for existing)

Before Occupancy Clearance $42,059.00

Traffic Mitigation Fee

City $3,067.00 (per peak hour trip)

Before Land Use Clearance Based on results of Traffic Study. Cannot estimate at this time

Not able to estimate at this time

Building Permit Fee

City Building Unable to estimate at this time

Before Building Permit Estimate $21,000 minimum from walls in, includes pool and jacuzzi. Plan check fees, estimated two

$

$36,500.00

Grading Permit Fee

City Public Works

2% of estimated value of grading/drainage/retaining wall work

Before Grading Permit Based on your civil engineer's estimate of construction costs, which is provided to

Not able to estimate at this time

COST ESTIMATE FOR Mission View Apartments

8/31/2017, emailed 10/11/17

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Environmental Review and Traffic Study

City $16,540.00 At time Application is deemed Complete

$16,540.00

Drainage Impact Fee

City $500.00 Before Land Use Clearance $500.00

School Fees Districts $2.87 per sq ft* Before Building Permit Estimate 43,704 SF residential x $2.87

$125,430.48

TOTAL FEES:

Date: _______________________di

Owner Name: __________________________ Signature: _________________________

*To be verified with other jurisdictions/agencies

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11-16-4: DEVELOPMENT PLANS:

A. Purpose And Intent: The purpose of a development plan is to provide discretionary action for projects allowed by right within their respective zoning districts which, because of the type, scale or location of the development, require comprehensive review.

B. Applicability: No permit shall be issued for any development, including grading, for any property located in a zone district in which a development plan is required until a development plan has been approved as provided below in this section with the exception that the planning/community development director may waive the requirements of this section if the project involves only a minor alteration, addition or replacement to an existing structure, and where there is a previously approved development plan on file with the city and the project is in substantial conformance with such development plan.

C. Contents Of A Development Plan: As many copies of a development plan as may be required shall be submitted unless otherwise specifically waived by the planning/community development director, the information submitted as part of the development plan shall include the following:

1. A plot plan of the proposed development drawn to scale showing:

a. Gross acreage and boundaries of the property;

b. Location of areas of geologic, seismic, flood and other hazards;

c. Location of areas of all existing and proposed structures, their use and square footage of each structure;

d. Location of areas of prime scenic quality, habitat resources, archaeological sites, water bodies and significant existing vegetation;

e. All interior circulation patterns including existing and proposed streets, walkways, bikeways and connector roads and other major highways;

f. Location of all utilities easements;

g. Location and use of all buildings and structures within fifty feet (50') of the boundaries of the property;

h. Location and amount of land devoted to public purposes, open space, landscaping and recreation;

i. Location and number of parking spaces; and

j. All easements.

2. Contour map showing topography including existing natural contours and proposed grading lines.

3. Proposed drainage system.

4. Preliminary floor plans.

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5. Preliminary building elevations.

6. Preliminary landscaping plans.

7. Statistical information including the following:

a. Number and type of dwelling units in each building, i.e., single-family dwelling, condominium, apartment, etc., and number of bedrooms in each unit.

b. Square footage and percentage of total net land area of the property devoted to landscaping and open space.

c. Total number of parking spaces and parking ratio parking spaces per building square foot, number of employees or dwelling units, whichever is applicable.

d. Total square footage of gross floor area of all stories and percent of total net land area of the site covered by buildings.

e. Estimated number of potential residents in each residential category.

f. Number of employees and number of proposed new employees, if applicable.

g. Average slopes, if parcel contains slopes of thirty percent (30%) or more.

8. A statement and design showing how the proposed development conforms to the architectural theme in the area, including the following architectural detail:

a. Description of plans showing overall building shapes, as well as parts of any structure, building, walls, screens, towers or signs in existing or permitted structures in the areas;

b. Provisions for harmonious relationship with existing and proposed adjoining developments and conformance with the design motif and theme of the area;

c. Provisions for harmony of materials, colors and composition of all sides of a structure or building;

d. Provisions for consistency and unity of composition and treatment of exterior elevations;

e. Provisions for the materials on the exterior face of the building or structure (wood, concrete, brick, stone);

f. Provisions for adequate landscaping in proportion to the project and the site, with due regard to preservation of specimen, landmark or other healthy trees; selection of a size and type of planting which will be appropriate to the project and will grow on the site; and provisions for maintenance of all plantings;

g. Provisions for site layout, orientation and location of structures, buildings and signs in appropriate and well designed relationship to one another with consideration given to open spaces, topography, definition of pedestrian and vehicular areas and exterior building lighting;

h. Provisions for open space suitably landscaped;

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i. Provisions of design of signs and lighting and other advertising media to harmonize and be subordinate to the building it serves;

j. Provisions for mechanical and electrical equipment and trash storage should be concealed and integrated in the total design concept;

k. Provisions for parking and loading areas to be attractively landscaped and otherwise screened, and landscaping between property lines and parking areas;

l. Provisions for storage areas to be defined as to height limits and architectural screening where exterior of structure;

m. Provisions for the location, color and screening of roof features shall be integrated into the overall design; and

n. Provisions for landscaping to soften large expanses of paved areas.

9. A statement of intent with respect to the establishment of utilities, services and facilities including water, sewage disposal, fire protection, police protection, schools and transportation, i.e., access, proximity to public transit or provision of bike lanes, etc.

10. Measures to be used to prevent or reduce nuisance effects, such as noise, dust, odor, smoke, fumes, vibration, glare, traffic congestion and to prevent danger to life and property.

11. If development is to occur in stages, the sequence and timing of construction of the various phases.

12. Proposed public access to recreational areas, trails or streets to be dedicated to the city.

13. Any other data requested by the planning/community development director.

D. Processing Of A Development Plan:

1. Any application filed pursuant to this section that is inconsistent with the use and/or density requirements of this title or any applicable general plan must be accompanied by an application to make the project consistent. The planning/community development director may refuse to accept for processing any application that is inconsistent with the general plan.

2. Upon receipt of the development plan, the planning/community development director shall process the plan through environmental review. The plan may be concurrently referred to the development review committee and board of architectural review for review. However, action on the project cannot be taken until the environmental review process is completed.

3. After a determination and/or preparation of the final environmental document, the planning/community development director shall refer the development plan to the board of architectural review and then to the development review committee for review and recommendation to the planning commission.

4. The planning commission shall hold at least one noticed public hearing then certify the environmental impact report or approve the negative declaration. The planning commission shall then consider the development plan and approve, conditionally approve or deny the plan. The planning commission's action shall be final, subject to appeal to the city council.

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5. If the development plan is in conjunction with a rezone application, the planning commission may make a determination on the development plan subject to city council action on the rezoning. The planning commission shall at the same time make a recommendation to the city council on the rezone.

6. A revised development plan shall be processed in the same manner as the original plan. When approved by the planning commission, such revised plan automatically supersedes any previously approved plan.

E. Plans For Land Use Permit Issued By The Planning/Community Development Director: As many copies of the development plan as may be required shall be submitted to the planning/community development director. The information submitted shall consist of the following:

1. All information and maps required under subsection C of this section.

2. Dimensioned building elevations, including overall building height.

3. Floor plans of each floor of each building indicating total gross and net floor area of each building.

4. Detailed landscaping and irrigation plan indicating existing and proposed trees, shrubs and ground cover, and delineating species, size and placement.

5. Proposed homeowners' association (if applicable), indicating CC&Rs, deeds and restrictions and methods of open space maintenance.

6. The proposed method of fulfilling all conditions of approval required on the development plan approval, including any improvement security as required by title 1, chapter 7 of this code.

7. Any other data requested by the planning/community development director.

F. Findings Required For Approval:

1. A development plan shall be approved only if all of the following findings can be made:

a. That the site for the project is adequate in size, shape, location and physical characteristics to accommodate the density and intensity of development proposed.

b. That adverse impacts are mitigated to the maximum extent feasible.

c. That streets and highways are adequate and properly designed.

d. That there are adequate public services, including, but not limited to, fire protection, water supply, sewage disposal and police protection to serve the project.

e. That the project will not be detrimental to the health, safety, comfort, convenience and general welfare of the neighborhood and will not be incompatible with the surrounding areas.

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http://www.sterlingcodifiers.com/codebook/getBookData.php?ft=4&find=1-7

f. That the project is in conformance with the applicable provisions of law, including this title and is consistent with the general plan.

g. That the development will not materially or adversely aggravate the parking and traffic conditions in the area.

h. That the project will not conflict with any easements required for public access through, or public use of, a portion of the property.

2. The planning/community development director shall issue a land use permit for a development plan only if the following findings are made: (Ord. 92-134, 12-28-1992)

a. Such plan is in substantial conformance with the approved development plan. (Ord. 97-186, 9-22-1997)

b. Such plan is in conformance with all applicable provisions and policies of the general plan, with law and this title.

G. Conditions, Restrictions And Modifications:

1. At the time the development plan is approved, the building height limits, distance between buildings, setback, yard, parking, building coverage, landscaping or screening requirements specified in the applicable zone district may be modified when there is a finding that such modifications are justified.

2. As a condition of approval of the development plan the planning commission may impose any appropriate and reasonable conditions or require any redesign of the project as they may deem necessary to protect the persons or property in the neighborhood, to preserve the neighborhood character, natural resources of scenic quality of the area, to preserve the theme or motif of the city, to preserve or enhance the public peace, health, safety and welfare, or to implement the purposes of this title.

3. The planning commission may require as a condition of approval of any development plan, the preservation of trees existing on the property and adequate parking.

H. Time Limit: Final development plans shall expire three (3) years after approval unless, prior to the expiration date, substantial physical construction has been completed on the development or a time extension has been applied for by the applicant. The planning commission may, upon good cause shown, grant time extensions for one year periods.

I. Development Review Committee To Recommend: The development review committee of the city shall review and make recommendations on all development plans and shall include with the same proposed findings and recommended conditions that may be adopted by the city.

J. Public Hearings: Public hearings shall be held on all development plan approvals, when required by Government Code section 65905 and, in such case, notice shall be given as required by Government Code section 65091. (Ord. 92-134, 12-28-1992)

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TO: SOLVANG CITY COUNCIL MEMBERS FROM: Fred Lageman, Parks and Recreation Director MEETING DATE: January 22, 2018 DATE PREPARED: January 10, 2018 SUBJECT: REVIEW BIDS OF HCA ADA RESTROOM REMODEL PROJECT (3) I. RECOMMENDATIONS:

Review the bid proposals for the Hans Christian Andersen Park ADA (Americans with Disabilities Act) Restroom Remodel project, and provide staff with direction on which option to pursue.

II. BACKGROUND:

The two restrooms at Hans Christian Andersen Park (HCA) were built in the early 1970’s and 1980’s respectively. The City of Solvang is currently trying to bring them both into ADA compliance. The City initially went out to bid on this project more than two years ago without engineering drawings and only one contractor would bid the project. Following that, staff did research on the plausibility of installing a pre-fabricated restroom building. The costs were higher than our budget at that time. It was then decided to hire a draftsman to create the current drawings for the restroom remodel. The project was put out to a formal bid. Three bids were received all coming in higher than the original estimate. The bids were rejected at the November 13, 2017, City Council meeting and staff was directed to pursue bids on the concept of a pre-fabricated building or a pre-engineered design-build building.

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III. DISCUSSION: The original three bids for the restroom remodel project as originally proposed were much higher than expected as noted in the table below:

After the reconstruction bids were rejected staff then sought out three bids to replace the existing restrooms with a pre-fab or design-build concept restroom. Of the three bids, two were for a pre-fab concept and the third was for a design-build concept. All of the buildings are constructed off site and then delivered to the park once completed. The pre-fab buildings are placed in their new location and following hook up to the existing utilities are ready for service within a week. The design-build concept restroom is delivered in sections and assembled on site and takes approximately six weeks for the installation of two restrooms.

The proposed buildings will replace the existing restrooms within the park. Currently, the skate park restroom has a men’s side with two stalls/two urinals. The women’s side contains four stalls. The tennis court restroom has a men’s side with one stall/one urinal while the women’s side has two stalls. Both of the current restrooms have a utility room. The proposed new restrooms would have four unisex restrooms plus a utility room. The overall square footage of each building is comparable to the existing restrooms and would, therefore, fit in the same approximate location. The existing buildings would be demolished and a new concrete slab (if necessary) would be poured for the new restroom’s installation. Two of the three restrooms are proposed with a Danish-style architecture. The third restroom is proposed with a smooth wall finish to be painted by others with the Danish-style finish. All three restrooms are essentially delivered turnkey. Demolition is not included in the final bid quotes, nor are any post-installation projects such as new sidewalk around the building, parking lot improvements, landscaping, etc. All proposed new restrooms meet current ADA guidelines and come with comparable fixtures, hardware, electrical requirements, etc.

Contractor Name

Business Location

Total Bid Amount ($)

Skate Park Restroom

Tennis Court Restroom

J&P Construction

Santa Maria $213,059 $116,816 $96,243

Elliott & Pohls Construction Solvang $243,716 $143,230 $95,286

Quincon, Inc. Grover Beach $357,127 $196,000 $156,127

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The individual building costs are represented below: Company Price Quote Notes CXT Concrete Buildings Inc $305,803 Pre-fab construction.

Does not include a Danish-style finish. Does include utilities hook up.

Public Restroom Company* $316,250 Pre-fab construction. Does include a Danish-style finish. Does not include utilities hook up.

Romtec Inc $335,362 Design-build construction. Does include a Danish-style finish. Does not include utilities hook up.

*The Public Restroom Company quote is for a three individual restrooms building (the others are for four individual restrooms). Staff did not receive a final quote for a four individual restrooms building in time for this report, though it was estimated by the company representative to be approximately $390,000-$400,000 for two buildings. Additional costs of projects after the installation of the new buildings, as referenced above, may vary slightly because of the different size and layout of each specific building. Estimates for the various additional projects are estimated below. Project Cost Demolition (local contractor) $37,248 Demolition (CXT) $167,750 New concrete slab $10,000-$15,000 New sidewalk $10,000-$15,000 New landscaping $1,000-$3,000 Parking lot improvements $10,000-$20,000

The additional project costs above the purchase and installation of the restrooms are estimated at $68,248-$90,248, excluding designed plans (this does not include the CXT demolition quote). Because the existing restrooms have the potential to service many customers simultaneously when large events are using the HCA facilities the staff chose the four-restroom concept as an appropriate size for replacement. Four restrooms are recommended to service 180 users per hour. If a three-restroom concept was utilized, it could service 45-120 users per hour. Reducing the number of restrooms could reduce the overall cost. One bid (Romtec) for the three-restroom concept was for $276,318. CXT may also provide a three-restroom building but the cost savings is minimal, though the structure comes with a much larger, functional utility room.

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IV. ALTERNATIVES: Vendor 4 Restrooms Demolition Other Imp Total CXT $305,803 $37,248 $53,000 $396,051 PRC $316,250 (3RR) $39,744* $53,000 $408,994 Romtec $335,362 $39,744* $53,000 $428,106

*Extra demo costs are for hooking up utilities from ground to new restroom. The City Council could choose to: 1. Reduce the scope of work to decrease the overall costs. 2. Replace only one restroom at this time. Replace the other bathroom in a future

budget year.

City Council may elect any one of these possibilities or offer other potential solutions.

IV. FISCAL IMPACT:

The current amount of money for this project is $98,437. Using the lowest bid (for both restrooms) as a baseline, the project is still short by $207,366. In addition, for the necessary post installation improvements the project will need another approximate $68,248-$90,248. If council elected to accept and reward the lowest bidder, the necessary funding could come from the general fund. A budget adjustment would need to be approved and a contingency of 10% should be included for a minimum total of $327,375 in additional funding if including all demolition and other improvement costs.

V. ATTACHMENTS:

Sample design ideas and floorplans. Design ideas can change by choice of finishes and color selection.

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Public Restroom CompanyFloor Plan & Design Proposal

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Romtec CompanyFloor Plan & Design Proposal

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CXTFloor Plan & Design Proposal

133

CXT Design Proposal

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TO: SOLVANG CITY COUNCIL MEMBERS FROM: Sandra Featherson, Administrative Services Director MEETING DATE: January 22, 2018 DATE PREPARED: January 14, 2018 SUBJECT: 2016-2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND

FINANCIAL REVIEW I. RECOMMENDATION:

1. Accept into the record as presented, the 2016-2017 Comprehensive Annual Financial Report as presented by Terry Krieg, CPA.

2. Review the ending fund balances for fiscal year ended June 30, 2017. II. DISCUSSION:

Our independent auditor Terry Krieg, CPA, performed the City of Solvang’s audit for the 2016-2017 financial records. Mr. Krieg conducts his audit in accordance with generally accepted auditing standards as they pertain to Government Auditing Standards issued by the Comptroller General of the United States. In his opinion our financial statements present fairly, in all material respects, the financial position of the City of Solvang as of June 30, 2017. Once the audit is completed, the Administrative Services and Finance Department prepares the Comprehensive Annual Financial Report for the fiscal year then ended. This document includes the financial statements and accompanying notes prepared by the auditor. The public is encouraged to take the time to read through this document as it defines our financial and economic status on a variety of levels. It also fulfills our responsibility to report all financial conditions to the public as custodians of their funds.

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Annually, the Administrative Services & Finance Department gives an update to City Council highlighting the fiscal condition of all funds following the end of each fiscal year. The table below identifies the prior year fund balance, the current year fund balance and the net increase or decrease.

General Fund The increase in the General Fund can be attributed primarily to the increased revenues from Transient Occupancy Tax (TOT) and Sales Taxes. The sales tax increase over the amount budgeted is primarily due to a final payment for Sales Tax in lieu of property taxes, a program that ended in FY 2015-16.

Fund # FundFY 2016-17

Ending BalanceFY 2015-16

Ending BalanceNet Increase/

Decrease

100 General Fund $ 10,046,650 $ 9,568,138 478,512$

200 Government Impact Fees $ 2,753,834 $ 2,618,850 134,984$

201 Traffic Safety $ 4,362 $ 5,448 (1,086)$

202 Gas Tax $ - $ 9,238 (9,238)$

203 Local Transportation $ 63,753 $ 2,345 61,408$

204 Measure A $ 228,585 $ 263,244 (34,659)$

205 Skytt Mesa LLMD $ 265,463 $ 166,368 99,095$

300 Capital Projects $ 275,000 $ 114,668 160,332$

500 Water $ 11,713,216 $ 10,205,119 1,508,097$

501 Wastewater $ 9,651,940 $ 9,997,902 (345,962)$

502 Transit $ 1,610,954 $ 1,466,109 144,845$

RevenueFY 2016-17 Budgeted

FY 2016-17 Actual

Difference between

Budgeted vs. Actual

TOT $ 3,955,000 $ 4,330,599 $ 375,599 Sales Tax $ 1,185,000 $ 1,453,808 $ 268,808 Property Tax $ 1,229,500 $ 1,283,266 $ 53,766 Building Permits $ 100,000 $ 132,819 $ 32,819 Development Fees $ 17,000 $ 39,205 $ 22,205 Special Events Revenue $ 13,000 $ 14,730 $ 1,730 Interest Income $ 18,050 $ 48,294 $ 30,244 Total $ 6,517,550 $ 7,302,721 $ 785,171

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In addition, in the General Fund, we spent less than anticipated in several categories as shown below:

The City incurs less salary, payroll taxes and benefit costs when positions are vacant, or employees are out on a leave. Projects moved to FY 2017-2018, or planned for completion are:

• HCA Restroom Upgrades • Fire Station Remodel • Solvang Park Gazebo/ADA Upgrades • Building Fee Study

As of June 30, 2017, the General Fund had a total fund balance of $10,046,650. The Fund Balance Policy, revised in 2013, states for emergency reserves, fifty percent of the operating expenditures will be set aside. As of June 30, 2017, the General Fund balance committed for emergencies is currently at $4.1 million, which represents 47% of our projected expenditures of $8.2 million for FY 2017-18. A budget adjustment will be done in FY 2017-18 to ensure the amount committed for emergencies is at 50%.

Account ExpendituresFY 2016-17 Budgeted

FY 2016-17 Actual

Difference between

Budgeted vs. Actual

51000 Salaries $ 1,823,829 $ 1,685,095 $ (138,734)70505 HCA Restroom Upgrades $ 100,000 $ 6,700 $ (93,300)57016 Professional Services $ 239,674 $ 161,210 $ (78,464)70105 Projects $ 186,600 $ 108,360 $ (78,240)56006 Law Enforcement Contract $ 1,630,000 $ 1,564,620 $ (65,380)57024 Studies $ 70,500 $ 8,855 $ (61,645)70944 Fire Station Remodel $ 237,578 $ 199,687 $ (37,891)53003 Repairs and Maintenance $ 119,100 $ 91,806 $ (27,294)70708 Vet's Hall Painting $ 33,000 $ 7,113 $ (25,887)51002 FICA $ 139,086 $ 113,295 $ (25,791)70504 Gazebo/ADA Upgrades $ 30,000 $ 5,266 $ (24,734)70704 Centennial Plaza $ 23,500 $ 8,941 $ (14,559)

Total $ 4,632,867 $ 3,960,947 $ (671,920)

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The General Fund designations are as follows:

Unassigned $ 5,824,932

Emergencies $ 4,127,320

Nonspendable $ 82,192

Recycling Grant $ 12,206

Total $ 10,046,650

After accounting for emergencies and other items, the General Fund has an unassigned balance of $5.8 million. In the coming months as part of the annual budget process, Staff will be presenting options for using a portion of those funds to pay down some of our outstanding liabilities including:

• Other Post Employment Benefits (OPEB) • Unfunded Pension Liability (CalPERS)

The ending balance for the Enterprise Funds is shown below. The Water fund increased its Net Position by approximately $1.5M due to transfers in from the General Fund to accelerate a meter replacement project, as well as a slight increase in sales of water (due to the end of the Stage 2 Drought penalty measures). In addition, a one-time decrease in the annual state water project cost of approximately $266K, (due to the amortization schedule from the Central Coat Water Authority) helped reduce overall expenditures.

The unrestricted amounts for the Enterprise Funds are shown below. It should be noted in the Water Fund, that $2.5M is identified as a prepayment (asset) which is for the FY 2017-18 State Water payment and is part of the Unrestricted Net Position.

Fund # FundFY 2016-17

Ending BalanceFY 2015-16

Ending BalanceNet Increase/

Decrease500 Water $ 11,713,216 $ 10,205,119 1,508,097$ 501 Wastewater $ 9,651,940 $ 9,997,902 (345,962)$ 502 Transit $ 1,610,954 $ 1,466,109 144,845$

Fund # Fund

FY 2016-17 Unrestricted Net

Position

FY 2015-16 Unrestricted Net

PositionNet Increase/

Decrease

500 Water $ 6,951,062 $ 5,824,125 1,126,937$

501 Wastewater $ 4,012,388 $ 4,032,697 (20,309)$

502 Transit $ 1,107,615 $ 868,694 238,921$

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The Wastewater fund recorded an operating loss of approximately $437K, that had an overall effect of a reduction in the overall Net Position of $345,962, and Unrestricted Net Position of approximately $20K. This was due in part to less revenue in Wastewater fees, and increased expenditures related to operating costs, salaries, and benefits. Staff will be monitoring the Wastewater Fund going forward and reviewing long term projections to determine if any recommendations need to be brought forth to Council. Mr. Krieg has noted there were no significant and unusual transactions reported in fiscal 2017 in the City’s statement of net position and fund statements other than: 1. Reporting an overall $2.34 million increase in the City net position as a result

of City total revenues exceeding total 2017 expenses. Of the $2.34 million increase, about $1.04 million was generated by the City’s governmental type activities, and the City’s business type activities generated the other $1.34 million increase in net position for the fiscal year.

2. The business-type funds collectively reported a positive $1.4 increase in overall

cash position for the 2017 fiscal year. Most of this was from the $870,000 transferred into the water enterprise and transit operating and capital subsidies.

3. The City’s general fund generated $1,418,400 more in revenues than in

expenditures in the 2017 fiscal year. This was the result of about a $360,000 overall increase in sales and hotel taxes compared to fiscal 2016 as well as the 2017 general fund expenditures remaining relatively stable this year at about $7.1 million. As a result, the general fund ended fiscal year with a $10.04 million fund balance (up $478,000 from fiscal 2016).

4. There was a net $134,000 increase in the fund balance of the impact fee fund as

a result of cash inflows from permitting. 5. The City’s internal service fund ended fiscal 2017 with about $1.37 million in

cash available for future capital asset needs. 6. The City was subject to the Federal Single Audit Requirements in Fiscal 2017

because aggregated expenditures of Federal Awards exceeded $750,000.

7. The City established a new investment program in fiscal 2017 placing about $981,200 in negotiable certificates of deposit.

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III. ALTERNATIVES:

None

IV. FISCAL IMPACT: None

V. ATTACHMENTS:

A. Letters from Terry E. Krieg, CPA

1. Report on Internal Control over Financial Reporting, Compliance, and Other Matters

2. Report on Compliance for Each Major Federal Program 3. Report on Internal Control over Compliance 4. Report on Schedule of Expenditures of Federal Awards Required by

the Uniform Guidance 5. Appropriations Limit 6. Letter to those Charged with Governance

B. Comprehensive Annual Financial Report

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ATTACHMENT A

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City of Solvang January 14, 2018 Page 2 4. Significant Audit Findings A. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. In accordance with my engagement letter, I will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City of Solvang are described in Note one to the financial statements. B. Changes in Accounting Policies There were no changes in accounting principles or changes in the application of adopted accounting principles and financial reporting practices in fiscal 2017.

1) New and Pending Changes in Accounting Standards of Significance

Governmental Accounting Standards Board (GASB) Statement Number 75, titled, Accounting and Financial Reporting for Post- Employment Benefits Other Than Pensions (OPEB) changes the method to be used to report the OPEB obligation and supersedes that current GASB 45 reporting model. Implementation may change significantly the City’s OPEB liability amounts. This new standard is effective for fiscal years beginning after June 15, 2017 (The 2018 fiscal year) although earlier application is encouraged by the GASB. The City should consult with its actuary in order to obtain OPEB valuations that will be compliant with the requirements of GASB Statement Number 75.

C. Significant and Unusual Transactions There were no significant and unusual transactions reported in fiscal 2017 in the City’s statement of net position and fund statements other than:

1. Reporting an overall $2.34 million increase in the City net position as a result of City total revenues exceeding total 2017 expenses. Of the $2.34 million increase, about $1.04 million was generated by the City’s governmental type activities and, the City’s business type activities generated the other $1.34 million increase in net position for the fiscal year.

2. The business-type funds collectively reported a positive $1.4 million increase in overall cash position

for the 2017 fiscal year. Most of this was from the $870,000 transferred into the water enterprise and transit operating and capital subsidies.

3. The City’s general fund generated $1,418,400 more in revenues than in expenditures in the 2017 fiscal year. This was the result of about a $360,000 overall increase in sales and hotel taxes compared to fiscal 2016 as well as the 2017 general fund expenditures remaining relatively stable this fiscal year at about $7.1 million. As a result, the general fund ended fiscal 2017 with a $10.04 million fund balance (up $478,000 from fiscal 2016)

4. There was a net $134,000 increase in the fund balance of the impact fee fund as a result of cash

inflows from permitting.

5. The City’s internal service fund ended fiscal 2017 with about $1.37 million in cash available for future capital asset needs.

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2017FISCAL YEAR ENDED JUNE 30

COMPREHENSIVE ANNUAL

CITY OF SOLVANG,CALIFORNIA

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CITY OF SOLVANG, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED

June 30, 2017

Prepared by:

Department of Administrative Services and Finance

162

i

City of Solvang Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2017

TABLE OF CONTENTS

Page INTRODUCTORY SECTION

Letter of Transmittal 3 GFOA Certificate of Achievement 7 Organizational Chart 8 List of Elected and Appointed Officials 9

FINANCIAL SECTION Independent Auditor’s Report 13 Management’s Discussion and Analysis 15 Basic Financial Statements:

Government-Wide Financial Statements: Statement of Net Position 31 Statement of Activities 32

Fund Financial Statements: Balance Sheet - Governmental Funds 33 Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds 34 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund

Balances of Governmental Funds to Statement of Activities 35 Statement of Net Position - Proprietary Funds 36 Statement of Revenues, Expenses, and Changes in Fund Net Position -

Proprietary Funds 37 Statement of Cash Flows - Proprietary Funds 38 Statement of Fiduciary Net Position 40

Notes to the Basic Financial Statements 42 Required Supplementary Information:

Budgetary Comparison Schedule - General Fund 63 Notes to RSI: Budgetary Comparison – General Fund 64 Budgetary Comparison Schedule – Impact Fees Special Revenue Fund 65 Schedule of Funding Progress - Other Post- Employment Benefits 66 Schedule of the City of Solvang’s Proportionate Share of the Net Pension Liability 67 Schedule of the City of Solvang’s Contributions Public Employee’s Retirement Plans 68

Combining Statements and Individual Fund Schedules-Nonmajor Funds: Combining Balance Sheet-Nonmajor Governmental Funds 71 Combining Statement of Revenues, Expenditures and Changes in

Fund Balances-Nonmajor Governmental Funds 72 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) - Traffic Safety 73 Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget and Actual (Budgetary Basis) - Gas Tax 74

163

ii

Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) - Local Transportation 75 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) - Measure A 76 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) - Skytt Mesa LLMD 77 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) - Capital Projects 78 Comparative Schedule of Capital Assets used in Governmental Activities By Source 79 Schedule of Changes in Capital Assets used in Governmental Activities By Source 80 Schedule of Capital Assets used in Governmental Activities by Function and Activity 81 Schedule of Changes in Capital Assets used in Governmental Activities By Function and Activity 82 Statement of Changes in Assets and Liabilities – Agency Fund 83

STATISTICAL SECTION

Financial Trends: Schedule of Net Position by Component 87 Schedule of Changes in Net Position 88 Schedule of Fund Balances - Governmental Funds 90 Schedule of Changes in Fund Balances – Governmental Funds 91

Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 92 Property Tax Rates – Direct and Overlapping Governments 93 Principal Property Tax Payers 94 Property Tax Levies and Collections 95 Transient Occupancy Tax – Principal Payers 96 Water Rates 97 Water Revenue Concentration Data 98 Principal Water Sale Purchasers 99

Debt Capacity: Ratios of Outstanding Debt by Type 100 Direct and Overlapping Governmental Activities Debt 101 Legal Debt Margin Information 102 Pledged Revenue Coverage 103

Demographic and Economic Information: Demographic and Economic Statistics 104 Principal Employers 105

Operating Information: Full Time Equivalent Employees by Function 106 Operating Indicators by Function 107 Capital Asset Statistics by Function 108

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INTRODUCTORY SECTION

165

This page is intentionally blank.

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December 27, 2017

To the Honorable Mayor, Members of the City Council, and Citizens of the City of Solvang:

The City follows a policy of preparing a complete set of financial statements in conformity with U.S. generally accepted accounting principles after the end of each fiscal year. This report is published to fulfill that policy for the fiscal year ended June 30, 2017.

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

The firm of Terry E. Krieg, Certified Public Accountant, has issued an unmodified independent auditor's report on the City of Solvang's financial statements for the fiscal year ended June 30, 2017. The independent auditor's report is located at the front of the financial section of this report.

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

Profile of the City of Solvang

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

The City was incorporated on May 1, 1985. It subsequently transitioned from a General Law City to a Charter City in November 2006. Becoming a "Charter City" means we have more "local home rule" authority than cities that incorporate under the "general laws" of the State of California. The Charter is the City's "Constitution," and any changes must be approved by the voters.

167

The City operates under the “Council-Manager” form of government. Policy making and legislative authority are vested in the City Council consisting of the Mayor and four other elected Council members. The Council is responsible for, among other matters, passing ordinances, adopting the City Budget, appointing committees, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the daily operations of the City, and appointing other employees and otherwise managing daily operations of the City. The Council members are elected to four-year staggered terms and with the election of 2008, we transitioned from an appointed Mayor to an elected Mayor with a two-year term, who serves as an equal member of the Council. The City of Solvang provides a full range of municipal services, including contracted police services, the construction and maintenance of City streets, storm drains, bridges and similar infrastructure type assets, park maintenance and community recreation activities. Water, wastewater and transit services are provided through the use of an enterprise fund or business-type fund structure. The annual budget serves as the foundation for the City of Solvang’s financial planning and control system. All departments of the City submit requests for appropriations to the Administrative Services Director each year. The Administrative Services Director and City Manager use these requests as a starting point for developing a proposed budget. Together, they present a proposed budget to the Finance Committee, which consists of two appointed members of the City Council. Once a final draft budget is achieved, it is presented to the City Council. The Council holds public hearings on the proposed budget and ultimately adopts a formal budget. The budget is adopted by fund, department, program, and object. The Council periodically reviews during the fiscal year the City’s actual financial activity in relationship to the original budget, and as necessary amends the original budget to reflect changing conditions. The general fund’s budgetary comparison, deemed a major fund under the new reporting standards, is presented as required supplementary information in a separate section of this report immediately following the notes to the financial statements. For the City’s other governmental-type funds with adopted budgets, a budget to actual comparison schedule is presented as optional information in the section of this report containing combining statements and individual fund schedules. Local Economy The City’s economy largely depends on tourism, which generates a large portion of the City sales tax and all of the transient occupancy tax (TOT) revenues that account for a major part of the City’s revenue stream. Property tax revenues are another large source of revenue for the City. Major attractions for visitors to the City include the City’s Danish themed village with unique shops, inns, bakeries, European style streets and architecture, cafes, local wineries, art galleries, golf courses, equestrian and other livestock production, the Santa Ines Mission, and the Elverhoj Museum of History and Art.

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This year the City saw slight increases in both property and sales tax revenues. Our top three sales tax generators by business category remain food products, general retail, and construction, in that order. Our largest General Fund revenue source, Transient Occupancy Tax, increased about 3.2%, even though the occupancy rate was down approximately 2.6%. We are projecting all of these revenue sources to show similar growth in fiscal year 2017-18. While we have seen increasing trends in revenues, the City is mindful of costs associated with increasing pension liabilities and increasing regulations for stormwater management, requiring additional resources for implementation. The City continues to take a very conservative approach in the budgeting process. We strive to operate within current revenue streams and are careful to minimize use of reserves. Staff has an awareness of the challenges we face and continues to be conservative in their spending. Long Term Financial Planning and Major Initiatives This year the City completed about $2.3 million in capital projects. For fiscal year ending 2017-18, the City has budgeted approximately $4.2 million for capital projects, mostly for water and public works. An additional $30.5 million in capital projects are included in the City’s Ten Year Capital Improvement Plan. These projects include about $13 million in public works projects, $635 thousand for parks and recreation, $1 million for transit, $6.9 million for water and $8.3 million for wastewater system improvements. The General Fund ended fiscal 2016-17 with a fund balance of approximately $10 million. Of that fund balance, $4.1 million is committed for emergency reserves, and approximately $5.8 million remained unassigned. There is approximately $3 million available in Traffic Mitigation, Impact Fees, Traffic Safety, Measure A, and Local Transportation funds, which will be used for future projects; mainly street infrastructure, improvements, and maintenance, sidewalk projects and the purchase of a parcel within the City for future parking and drainage improvements. In fiscal year 2011 the City underwent a study for water and sewer to evaluate the utility rates and connection fees in an effort to ensure that we will be able to sustain the maintenance, capital infrastructure and required reserve levels for these funds and to ensure long term fiscal stability. The study was concluded in fiscal year 2011/12 and rate increases for a five year period were recommended and adopted by the City Council. The five year period ended June 30, 2016. The City completed a water and sewer rate study in FY 2016-17, and the City Council elected not to raise rates at that time. Staff will be evaluating revenue projections, as well as short and long term needs for water and sewer, and will return to Council for discussion and review in 2017-18. Relevant Financial Policies The City Council adopted a Fund Balance Policy in 2013 that sets the City’s General Fund balance committed for emergency contingencies at 50% of the current year operating budget and is to be adjusted annually.

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Awards and Acknowledgements

The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Solvang for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2016. The City has received this award for 27 of the last 28 years. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal and program requirements.

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

There are a number of benefits from participating in this program beyond simply ga1mng recognition for our efforts. We believe that by continually striving for excellence in meeting the program standards and goals, we have the ability to produce quality reports as well as receive comments for improvements from other municipal finance professionals. This allows us to gain a "fresh" perspective and continually improve in our reporting for the benefit of the City and the public at large.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Administrative Services and Finance department. We are very proud of our teamwork here and would like to express our appreciation to all members of the departments who assisted and contributed to the preparation of this report and their effort throughout the year to ensure the integrity of the financial records. A special "Thank You" to Fred Lageman, Parks and Recreation Director, for your outstanding report cover this year and for the many years prior. A special "Thank You" also goes to Dr. Kenneth Harwood, a local economist for providing his insights on the local economy. Credit must also be given to the Mayor and the Members of the City Council, and the City Manager for their continued support for maintaining the highest standards of professionalism in the management of the City of Solvang' s financial affairs.

Respectfully submitted,

Brad Vidro City Manager

Sandra L. Featherson Administrative Services Director

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Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

City of Solvang

California

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

June 30, 2016

Executive Director/CEO

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Citizens of Solvang

Mayor and City Council

City Manager

City Clerk Public Works Director

Parks & Recreation

Director

Administrative Services Director

Planning and Community

Development Director

Contract Services

Water Supervisor

Operators3.0 FTE

WastewaterTreatment Plant

Supervisor

Lead Operator/City Inspector

Collection Operator

Operators3.0 FTE

Associate Engineer

Maintenance Supervisor

Public Works Office Assistant .35 FTE

Maintenance Workers4.0 FTE

Custodian

Sr. Recreation Coordinator

Recreation Clerk

Parks Maintenance

2.84 FTE

Finance Supervisor

Sr. Accounting Technician

Utility Billing Clerk

Accounting Assistant II

Assistant Planner

Building Permit

Technician.65 FTE

Office Assistant

Santa Barbara County

SheriffAnimal Control

Private Contracts

Information TechnologyBuilding Official/InspectorPark Facility Host

City of SolvangFiscal Year 2016 - 2017Organizational Chart

Code Enforcement

.47 FTE

Contract – City Attorney

Engineering Technician

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City of Solvang List of Elected and Appointed Officials

As of June 30, 2017

Elected Officials

Mayor Jim Richardson Council Member Hans Duus Council Member Joan Jamieson Council Member Ryan Toussaint Council Member Neill Zimmerman

Appointed Officials

City Manager Brad Vidro City Attorneys David Fleishman Roy Hanley City Clerk Lisa Martin Administrative Services Director Sandra Featherson Parks & Recreation Director Fred Lageman Planning/Community Development/Building Holly Owen Public Works Director/City Engineer Matthew van der Linden

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174

FINANCIAL SECTION

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Management's Discussion and Analysis

As management of the City of Solvang, we offer readers of the City of Solvang’s financial statements, this narrative overview and analysis of the financial activities of the City of Solvang for the fiscal year ended June 30, 2017. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-6 of this report. Financial Highlights The general fund reported a fund balance of $10.05 million at the end of the 2017 fiscal year;

an increase of approximately $479 thousand or 5% over fiscal year 2015-2016.

Citywide, the total net position increased by $2.3 million or 5.2% higher than 2015-2016 after conducting all operations and programs. The net position totaled $47.5 million dollars at year-end. Of that amount, $20.8 million (the unrestricted net position) may be used to meet the City’s ongoing obligations and operating expenses for the next fiscal year.

The City’s Governmental activities reported net position of $24.5 million dollars. Of the $24.5 million dollars, $8.7 million remains unrestricted and available.

Overall, Citywide revenues from governmental activities, grants and taxes increased

approximately $1.5 million compared to the 2015-2016 fiscal year. This increase is primarily a result of increased capital grants and contributions for the Alisal Bridge Retrofit Project.

Impact Fees ended FY 2016-2017 with a fund balance of $2.75 million; an increase of

approximately $135 thousand from FY 2015-2016. This increase is much less than in prior years due to the final buildout of the Skytt Mesa subdivision.

The Proprietary funds ended the fiscal year with a net position of $22.9 million (including the

funds’ net investment in capital assets).

The City’s other non-major governmental funds ended FY 2016-2017 with a fund balance of $837 thousand dollars.

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Overview of the Financial Statements The discussion and analysis provided here are intended to serve as an introduction to the City of Solvang’s basic financial statements. The City of Solvang’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Solvang’s finances, in a manner similar to a private-sector business. The statement of net position presents financial information on all of the City of Solvang’s assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Solvang is improving or deteriorating. The statement of activities presents information showing how the City of Solvang’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Solvang that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Solvang include general government, public safety, highways and streets, planning and economic development, and culture and recreation. The business-type activities of the City of Solvang include water, wastewater and transit operations. The government-wide financial statements include not only the City of Solvang itself (known as the primary government), but also the Solvang Conference and Visitor Bureau, a separate operation for which the City of Solvang provides over 80% of its funding annually. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found on pages 31-32 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Solvang, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Solvang can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Solvang maintains eight individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, and the impact fee fund, which are considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report. The City of Solvang adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 33-35 of this report. Proprietary Funds. The City of Solvang maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Solvang uses enterprises funds to account for its water, wastewater and transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Solvang various functions. The City of Solvang uses an internal service fund to account for the replacement of its fleet of vehicles and major equipment. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, wastewater and transit operations, all of which are considered to be major funds of the City of Solvang. Conversely, the internal service fund is a single, presentation in the proprietary fund financial statements.

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The basic proprietary fund financial statements can be found on pages 36-39 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government-wide financials statements because the resources of those funds are not available to support the City of Solvang own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City of Solvang maintains two types of fiduciary funds. The Agency fund reports resources held by the City of Solvang in a custodial capacity for individuals, private organizations, and other governments. The City of Solvang maintains one Agency fund on behalf of the Santa Ynez Valley Tourism Business Improvement District (District). The City collects the revenue from the local hotels, and then remits the funds to the District. The City also maintains a retiree medical trust fund used to prefund eligible retiree medical post-employment benefits. The fiduciary fund financial statements can be found on pages 40-41 of this report. Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 42-59 of this report. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the general and impact fee funds budget to actual comparisons, funding progress on the City’s other post employment benefits (OPEB), the City’s proportionate share of the net pension liability in regards to the California Public Employees Retirement System (CalPERS) cost sharing pool of which the City is a member, and the City’s pension plan employer contributions. Required supplementary information can be found on pages 63-68 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on the City’s pension liability. Combining and individual fund statements and schedules can be found on pages 71-83 of this report. Government-wide Overall Financial Analysis As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the case of the City of Solvang, assets and deferred outflows of resources exceeded liabilities by $47,522,510, at the close of the most recent fiscal year.

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City of Solvang Net Position

By far, the largest portion of the City of Solvang’s net position (48.6%) reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City of Solvang uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. An additional portion of the City of Solvang’s net position (7.6%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $20.8 million is unrestricted, and may be used to meet the government’s ongoing obligations to its citizens and creditors. At the end of the current fiscal year, the City of Solvang is able to report positive balances in all reported categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year.

TotalPercentage

Change

Assets: 2016 2017 2016 2017 2016 2017 2016-2017

Current and other Assets 14,315,319$ 15,448,782$ 11,749,122$ 13,290,639$ 26,064,441$ 28,739,421$ 10%Capital Assets 11,584,893 12,128,629 10,943,614 10,905,045 22,528,507 23,033,674 2%

Total Assets 25,900,212$ 27,577,411$ 22,692,736$ 24,195,684$ 48,592,948$ 51,773,095$ 7%Deferred outflows of resources: Pension plan contributions and other pension deferrals 581,931$ 792,535$ 200,202$ 264,181$ 782,133$ 1,056,716$ 35%

Current liabilities 408,529$ 478,200$ 426,539$ 484,650$ 835,068$ 962,850$ 15%Noncurrent liabilities 2,293,151 2,898,280 705,631 852,565 2,998,782 3,750,845 25%

Total Liabilities 2,701,680$ 3,376,480$ 1,132,170$ 1,337,215$ 3,833,850$ 4,713,695$ 23%Deferred inflows of resources: Pension plan timing difference 275,931$ 447,066$ 91,638$ 146,540$ 748,601$ 593,606$ -21%

Net Position:Invested in capital assets 11,584,893$ 12,210,555$ 10,943,614$ 10,905,045$ 22,528,507$ 23,115,600$ 3%Restricted 3,121,123 3,597,517 - 3,121,123 3,597,517 15%Unrestricted 8,798,516 8,738,328 10,725,516 12,071,065 19,524,032 20,809,393 7%

Total Net Position 23,504,532$ 24,546,400$ 21,669,130$ 22,976,110$ 45,173,662$ 47,522,510$ 5%

Table A-1City of Solvang Net Position

Governmental Activities Business-type Activities Total

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The City of Solvang’s overall net position increased by $2.3 million from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental and business-type activities. Governmental Activities. Taxes are the primary source of revenue for governmental activities and account for 76% of all revenues. The tax category includes property tax, sales tax, transient occupancy tax (TOT) and other taxes. Solvang is a tourist community and the largest portion of its tax revenues come from transient occupancy tax (local hotel tax). These taxes generate 45% of all governmental-type revenues. In FY 2016-17, local hotel tax increased approximately $135 thousand or 3.2% from fiscal year 2015-16.

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The City’s governmental-type operating expenses consist of public safety, culture and recreation, public works, general government and community development. When all operations were concluded, the governmental activities function generated an increase of $1.04M in net position primarily due to an increase in general revenues and capital grants and contributions. City of Solvang’s Changes in Net Position

Total Percentage

Change

2017 2016 2017 2016 2017 2016 2016-2017

Revenues: Program revenues Charges 1,356,647$ 1,354,064$ 6,314,091$ 6,254,089$ 7,670,738$ 7,608,153$ 1% Operating grants and contributions 773,860 530,193 888,618 813,847 1,662,478 1,344,040 24% Capital grants and contributions 921,294 116,767 214,575 587,845 1,135,869 704,612 61%General revenues: - Transient occupancy taxes 4,330,599 4,195,940 4,330,599 4,195,940 3% Property, sales and other taxes 2,970,646 2,688,340 2,970,646 2,688,340 11% Other 48,294 43,499 48,294 43,499 11%

Total revenues 10,401,340 8,928,803 7,417,284 7,655,781 17,818,624 16,584,584 7%

Expenses:General government 2,031,468 1,664,564 2,031,468 1,664,564 22%Public safety 1,675,872 1,637,483 1,675,872 1,637,483 2%Culture and recreation 1,865,952 1,858,427 1,865,952 1,858,427 0%Community development 434,362 463,965 434,362 463,965 -6%Public works 2,499,428 2,045,387 2,499,428 2,045,387 22%Water 4,030,207 4,077,790 4,030,207 4,077,790 -1%Wastewater 2,083,850 1,733,416 2,083,850 1,733,416 20%Transit 848,637 701,114 848,637 701,114 21%

Total expenses 8,507,082 7,669,826 6,962,694 6,512,320 15,469,776 14,182,146 9%

Increase (decrease) in net position before transfers 1,894,258 1,258,977 454,590 1,143,461 2,348,848 2,402,438 -2%

Transfers (852,390) (2,000) 852,390 2,000 - -

Increase (decrease) in net position 1,041,868 1,256,977 1,306,980 1,145,461 2,348,848 2,402,438 -2%

Net position, beginning 23,504,532$ 22,247,555$ 21,669,130$ 20,523,669$ 45,173,662$ 42,771,224$ 6%

Net position, ending 24,546,400$ 23,504,532$ 22,976,110$ 21,669,130$ 47,522,510$ 45,173,662$ 5%

Business-type ActivitiesGovernmental Activities Total

Table A-2City of Solvang's Changes in Net Position

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Business-type Activities. For the City of Solvang’s business-type activities, the City’s net position increased, to end the year at $22,976,110. The increase in net position for business-type activities (water, wastewater, and transit funds) was $1,306,980 from the prior fiscal year. Water revenue remained relatively flat, showing a modest 2.3% increase due to the continued conservation efforts by Solvang residents and the completion of the Skytt Mesa subdivision (resulting in less Connection Fee revenue). Wastewater revenues declined about 4%, also due, in part, to the completion of the Skytt Mesa subdivision. Overall, revenues decreased by about 3%, while expenditures increased about 7%. Financial Analysis of Governmental Funds As noted earlier, the City of Solvang uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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Governmental Funds. The focus of the City of Solvang’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Solvang’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City of Solvang itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City of Solvang’s Council. At June 30, 2017, the City of Solvang’s governmental funds reported combined fund balances of $13,637,647, an increase of $889,348 in comparison with the prior year. Approximately 43% of this amount ($5,824,932) constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either nonspendable, restricted, or committed, to indicate that it is 1) not in spendable form ($357,192), 2) restricted for particular purposes ($3,328,203), or 3) committed for particular purposes ($4,127,320). The increase in governmental funds from fiscal year 2015-16 to 2016-2017, was due primarily to the increase in the General Fund as a result of increased transient occupancy and sales taxes.

The general fund is the chief operating fund of the City of Solvang. At the end of the current fiscal year, the unassigned fund balance of the general fund was $5,824,932, while total fund balance increased to $10,046,650.

187


Proprietary Funds. The City of Solvang’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position for the Water and Wastewater funds at the end of the year were $6,951,062 and $4,012,388 respectively. The total growth in net position for Water was $1,508,097. The increase in Net Position in the Water Fund is attributed primarily to a transfer in from the General Fund to accelerate a meter replacement project. The Wastewater fund decreased its net position by $345,963. Both the Water and Wastewater funds received less capital contributions (connection fees) due to the final development of the Skytt Mesa subdivision. Transit operations unrestricted net position totaled $1,107,615, an increase of $144,845 from fiscal year 2015-16. Transit operations overall net position increased by 9.9% to end the fiscal year at $1,610,954, primarily due to operating assistance from the federal and state government.

188


General Fund Budgetary Highlights Original budget compared to final budget. There were two budget adjustments (greater than $100 thousand), to increase original budgeted expenditures - listed below:

Santa Barbara County Fire received a donation of a ladder fire truck. The truck would not fit in the current location of the fire station, so the City Council agreed to share the cost to remodel one of the fire station bays (located in the City Hall building) for the new truck. The City received a donation and was also able to redirect Indian Gaming funds to help offset the cost. Included in the Ten Year Capital Improvement Plan is a project to move the overhead utility lines underground, along a portion of Mission and Fifth Streets. The City Council elected to utilize $275,000 of General Funds to buy the necessary PG&E credits from the City of Santa Barbara to help facilitate the project. Generally, the movement of the appropriations between departments was not significant. Final budget compared to actual results. The most significant differences between estimated revenues and actual revenues were as follows:

A review of actual expenditures compared to the appropriations in the final budget yields no significant variances. Overall, actual expenditures were less than budgeted expenditures by $478,513. Capital Asset and Debt Administration Capital assets. The City of Solvang’s investment in capital assets for its governmental and business-type activities as of June 30, 2017, amounts to $23,115,6007 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment,

Expenditure Budget Adjustments Initial Budget Final Budget Difference

Fire Station Bay Extension ‐$ 237,578$ 237,578$

Transfers Out ‐ Transfer for Purchase of PG&E

Underground Utility Credits for Project 810,000$ 1,085,000$ 275,000$

Revenue Source

Final Budgeted

Revenues

Actual

Revenues Difference

Transient Occupancy Tax 3,955,000$ 4,330,599$ 375,599$

Sales Tax 1,185,000$ 1,290,241$ 105,241$

Property Tax ‐In Lieu Local Sales Tax ‐$ 163,567$ 163,567$

189


vehicles, park facilities, roads, highways, bridges, and the wastewater treatment plant. The investment in capital assets increased by 2.6%. Major capital asset events (greater than $100K) during fiscal year 2016-17 included the following:

Alisal Bridge Seismic Retrofit $ 915,291 South Well in Hans Christian Andersen Park $ 322,767 Resevoir 2 Upgrades/Repairs $ 294,128 Roads - Crack Sealing/Overlay $ 276,382 Fire Station Remodel $ 199,687

Additional information on the City of Solvang’s capital assets can be found in Note 4.D on pages 50-52 of this report. Long-term Debt. Under insurance arrangements, the City is self-insured for the first $50,000 for each workers’ compensation claim, $20,000 for each general liability claim, and $5,000 per property damage claim. The statement of net position also shows no liability for 2017 for estimated claim obligations and has no current obligation for 2017. This liability was fully funded and paid in 2017, and there were no pending claims at the end of the fiscal year. The City has a take or pay water purchase agreement with the Santa Ynez River Water Conservation District, Improvement District No. 1 (ID No.1) where the City must make annual payments for the water whether or not water is delivered. ID No 1. has pledged its water sale revenue from Solvang for repayment of its long-term debt. Solvang has an ongoing commitment to buy water from ID No 1, but the bonded debt is that of ID No. 1 and not the City of Solvang. The agreement requires annual payments until 2035. Additional information on the City’s long-term debt can be found starting on page 52 of the notes to the financial statements Economic Factors and Next Year’s Budget and Rates The following economic factors currently affect the City of Solvang and were considered in developing the 2017-18 fiscal year budget: In June 2017, the City Council adopted a General Fund budget with expenditures greater than

budgeted revenues. This was to provide monies to the Water Fund to accelerate a meter replacement project. Given the anticipated amount of available unassigned fund balance at the end of FY 2016-17 of approximately $5M, the City Council anticipated using those funds to make up the budgeted deficit of $839K. We do not anticipate the reduction of any public services or staff in the coming year.

190


In 2011, an annual increase in water rates was approved and scheduled for each November

from fiscal year 2011-12 through fiscal year 2015-2016. The additional funds generated by the increase were to support maintenance and capital replacement costs, as well as adequate funding of reserves. However, with the State of California in a severe drought, the impact of the rate increase has been diminished by the need to purchase additional water and move forward with capital projects to ensure long term water resources. The City completed a water and sewer rate study in FY 2016-17 and the City Council elected not to raise rates at that time. Staff will be evaluating revenue projections, as well as short and long term needs for water and sewer and will return to Council for discussion and review in 2017-18.

As property values slowly increase, the taxable assessed value as a percentage of estimated actual value in property assessments increases, and contributes to the increase in City revenues.

The City continues to see yearly increases in transient occupancy taxes and revenue for the City.

Increases are expected in pension and other employee benefit costs. These rates will be increasing over the next 5-7 years as CalPERS adjusts their methodology and assumptions.

The City of Solvang relies heavily on tourism, with over 1.5 million visitors annually, requiring daily services for residents and non-residents alike.

Requests for Information This financial report is designed to provide a general overview of the City of Solvang’s finances for anyone with an interest in the government’s finances. If you have questions about this report or need additional financial information, contact the Administrative Services Director at: City of Solvang 1644 Oak Street Solvang, California 93463 (805) 688-5575

191


192

Basic Financial Statements

193


194

ComponentUnit

Governmental Activities

Business Type Activities Total

Solvang Conference &

Visitors BureauASSETSCurrent assets:

Cash and cash equivalents 14,021,880$ 8,879,339$ 22,901,219$ 87,870$ Net receivables 1,046,346 1,016,222 2,062,568 127 Deposits - 609,453 609,453 Prepayments 298,364 2,525,918 2,824,282 700

Total current assets 15,366,590 13,030,932 28,397,522 88,697

Noncurrent assets: Restricted cash and cash equivalents - 259,707 259,707 -

Receivables-long-term 82,192 - 82,192 - Capital assets not being depreciated 3,349,377 1,079,025 4,428,402 - Capital assets being depreciated, net 8,779,252 9,826,020 18,605,272 -

Total noncurrent assets 12,210,821 11,164,752 23,375,573 -

Total assets 27,577,411 24,195,684 51,773,095 88,697 DEFERRED OUTFLOWS OF RESOURCES

Pension plan deferrals 792,535 264,181 1,056,716 - LIABILITIESCurrent liabilities:

Accounts payable 348,738 138,495 487,233 27,804 Accrued liabilities 20,867 15,784 36,651 10,798 Compensated absences 60,000 69,664 129,664 - Deposits 48,595 1,000 49,595 - Unearned advances - 259,707 259,707 -

Total current liabilities 478,200 484,650 962,850 38,602

Noncurrent liabilities: Compensated absences 102,543 9,900 112,443 - Net other post employment benefit obligation 226,413 - 226,413 - Net pension liability 2,569,324 842,665 3,411,989 -

Total noncurrent liabilities 2,898,280 852,565 3,750,845 -

Total liabilities 3,376,480 1,337,215 4,713,695 38,602 DEFERRED INFLOWS OF RESOURCES:

Pension plan deferrals 447,066 146,540 593,606 -

NET POSITIONNet investment in capital assets 12,210,555 10,905,045 23,115,600 - Restricted for:

Highways and streets 2,653,742 - 2,653,742 - Capital improvements 943,775 - 943,775 -

Unrestricted 8,738,328 12,071,065 20,809,393 50,095

Total net position 24,546,400$ 22,976,110$ 47,522,510$ 50,095$

Primary Government

CITY OF SOLVANGStatement of Net Position

June 30, 2017

The notes to the financial statements are an integral part of this statement.195

Component Unit

ExpensesCharges for

Services

Operating Grants and

Contributions

Capital Grants and

ContributionsGovernmental

ActivitiesBusiness-type

Activities TotalSolvang Conference and Visitors Bureau

Functions/Programs

City governmentGovernmental Activities:

General government 2,031,468$ 499,324$ -$ -$ (1,532,144)$ -$ (1,532,144)$ -$ Public safety 1,675,872 19,039 - - (1,656,833) - (1,656,833) - Culture and recreation 1,865,952 119,547 5,238 - (1,741,167) - (1,741,167) - Community development 434,362 287,874 - - (146,488) - (146,488) - Public works 2,499,428 430,863 768,622 921,294 (378,649) - (378,649) -

Total governmental activities 8,507,082 1,356,647 773,860 921,294 (5,455,281) - (5,455,281) -

Business-Type Activities:Water 4,030,207 4,566,227 - 102,409 - 638,429 638,429 - Wastewater 2,083,850 1,669,291 - 90,875 - (323,684) (323,684) - Transit 848,637 78,573 888,618 21,291 - 139,845 139,845 -

Total business-type activities 6,962,694 6,314,091 888,618 214,575 - 454,590 454,590 -

Total Primary government 15,469,776$ 7,670,738$ 1,662,478$ 1,135,869$ (5,455,281) 454,590 (5,000,691) - Component Unit:

Solvang Conference & Visitors Bureau 836,777$ 109,494$ 729,874$ -$ - - - 2,591$

General revenues and transfers:Taxes:

Property taxes 1,283,266 - 1,283,266 - Sales taxes 1,453,808 - 1,453,808 - Transient occupancy taxes 4,330,599 - 4,330,599 - Other taxes 233,572 - 233,572 -

Interest 48,294 - 48,294 - Transfers (852,390) 852,390 - -

Total general revenues and transfers 6,497,149 852,390 7,349,539 -

Increase (decrease) in net position 1,041,868 1,306,980 2,348,848 2,591

Net position, beginning 23,504,532 21,669,130 45,173,662 47,504

Net position, ending 24,546,400$ 22,976,110$ 47,522,510$ 50,095$

CITY OF SOLVANGStatement of Activities

For the Fiscal Year Ended June 30, 2017

Primary Government

Net (Expenses) Revenue and Changes in Net PositionProgram Revenues

The notes to the financial statements are an integral part of this statement.196

General Fund Impact Fee Fund

Other Governmental

Funds

Total Governmental

FundsASSETS

Cash and investments 9,381,779$ 2,758,217$ 514,428$ 12,654,424$ Taxes receivable 631,526 - - 631,526 Accounts receivable 72,621 - - 72,621 Due from other governments - - 289,577 289,577 Accrued interest receivable 19,962 5,846 1,335 27,143 Due from other funds 229,411 - - 229,411 Notes receivable - 22,931 - 22,931 Prepayments 23,364 - 275,000 298,364 Due from other governments - long term 82,192 - - 82,192

Total assets 10,440,855$ 2,786,994$ 1,080,340$ 14,308,189$

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payable 325,123$ 10,229$ 13,386$ 348,738$ Accrued liabilities 20,487 - 380 20,867 Due to other funds - - 229,411 229,411 Deposits 48,595 - - 48,595

Total liabilities 394,205 10,229 243,177 647,611

Deferred inflow of resources: Long-term notes receivable - 22,931 - 22,931

Fund balances: Nonspendable 82,192 - 275,000 357,192 Restricted for: Recycling 12,206 - - 12,206 Highways and streets - 1,822,265 562,163 2,384,428 Parking - 436,266 - 436,266 Park improvements - 87,376 - 87,376 Drainage - 1,602 - 1,602 Affordable housing - 406,325 - 406,325 Committed to: Emergencies 4,127,320 - - 4,127,320

Unassigned 5,824,932 - - 5,824,932

Total fund balances 10,046,650 2,753,834 837,163 13,637,647 Total liabilities, deferred inflows of resources and fund balances 10,440,855$ 2,786,994$ 1,080,340$ 14,308,189$

Total Governmental Fund Balances 13,637,647$ Amounts reported for governmental activities in the statement of net position are different because:Capital assets used in governmental activities are not

current financial resources and therefore are not reported in the funds. 12,046,702 The assets and liabilities of the internal service fund are included in the

governmental activities in the statement of net position. 1,451,930 Pension actuarial liabilities and certain employer contributions are reported as deferred inflows

and outflows of resources and are, therefore, not reported in the funds. 345,470 Net pension liability (NPL) obligations are not due and payable in the current period and are not

reported in the funds (2,569,324) Long-term notes receivable from developers are not current financial resources and

are reported as deferred inflows in the funds. 22,931 Some liabilities, including compensated absences, claims and

other post employment benefit obligations are not due and payablein the current period and, therefore, are not reported in the funds. (388,956)

Net Position of Governmental Activities 24,546,400$

CITY OF SOLVANGBalance Sheet

Governmental FundsJune 30, 2017

The notes to financial statements are an integral part of this statement.197

General FundImpact Fee

Fund

Other Governmental

Funds

Total Governmental

FundsREVENUES

Property taxes 1,283,266$ -$ -$ 1,283,266$ Sales taxes 1,453,808 - - 1,453,808 Transient occupancy taxes 4,330,599 - - 4,330,599 Other taxes 233,572 - - 233,572 Special assessments - - 202,752 202,752 Licenses and permits 183,868 - - 183,868 Fines and forfeits - - 8,878 8,878 Intergovernmental 5,000 - 1,483,877 1,488,877 Interest 48,294 13,868 1,389 63,551 Charges for services 742,510 177,702 - 920,212 Miscellaneous 207,954 - 1,072 209,026

Total revenues 8,488,871 191,570 1,697,968 10,378,409

EXPENDITURESCurrent:

General government 1,668,876 - - 1,668,876 Public safety 1,662,176 - - 1,662,176 Culture and recreation 1,653,993 - - 1,653,993 Community development 434,362 - - 434,362 Public works 1,651,052 56,586 1,547,016 3,254,654

Total expenditures 7,070,459 56,586 1,547,016 8,674,061

Excess (deficiency) of revenues overexpenditures 1,418,412 134,984 150,952 1,704,348

OTHER FINANCING SOURCES (USES)Transfers in 150,786 - 280,686 431,472 Transfers out (1,090,686) - (155,786) (1,246,472)

Total other financing sources (uses) (939,900) - 124,900 (815,000)

Net change in fund balances 478,512 134,984 275,852 889,348

Fund balances, July 1 9,568,138 2,618,850 561,311 12,748,299

Fund balances, June 30 10,046,650$ 2,753,834$ 837,163$ 13,637,647$

CITY OF SOLVANG Statement of Revenues, Expenditures, and Changes in Fund Balances

For the Fiscal Year Ended June 30, 2017Governmental Funds


Net Change in Fund Balances - Total Governmental Funds 889,348$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures, however, in the statementof activities, the cost of those assets are allocated over their estimated useful lives asdepreciation expense. This is the amount by which capital outlays of $1,601,062 exceeddepreciation ($818,156) in the current period. 782,906

The abandonment of capital assets (construction in progress costs) do not result in the useof current financial resources and are therefore not reported in the funds (216,977)

Increases in liabilities for other post employment benefits (OPEB) do not requirethe use of current financial resources, but increase liabilities in the statement of net position (5,021)

Long-term notes receivable are not current financial resources and are deferred in the funds 22,931

Changes in the net pension liability do not use or provide current financial resources and arereported in the statement of activities, but not in the fund statements. (540,872)

Some expenses in the statement of activities for noncurrent liabilities such as long-termcompensated absences do not require the use of or provide current financial resourcesand, therefore, are not reported as expenditures in the governmental funds (19,766)

Internal service funds are closed by charging additional amounts or reducing charges toparticipating governmental activities to completely cover the internal service fund's costs 129,319

Net differences 152,520

Change in Net Position of Governmental Activities 1,041,868$

June 30, 2017

CITY OF SOLVANGReconciliation of the Statement of Revenues, Expenditures

To the Statement of Activitiesand Changes in Fund Balances of Governmental Funds


Water Wastewater Transit Totals

Governmental Activities - Internal

Service FundASSETSCurrent assets:

Cash and cash equivalents 3,649,540$ 4,348,672$ 881,127$ 8,879,339$ 1,367,456$ Receivables(net) 560,443 180,429 275,350 1,016,222 2,548 Deposits 609,453 - - 609,453 - Prepayments 2,517,813 7,580 525 2,525,918 -

Total current assets 7,337,249 4,536,681 1,157,002 13,030,932 1,370,004

Noncurrent assets:Other assets: Cash and cash equivalents - - 259,707 259,707 -

Total other noncurrent assets - - 259,707 259,707 - Capital assets: Capital assets not being depreciated:

Land 64,099 48,720 - 112,819 - Construction in progress 944,915 - 21,291 966,206 - Total 1,009,014 48,720 21,291 1,079,025 -

Capital assets being depreciated:Buildings and facilities 784,721 6,992,536 450,834 8,228,091 - Distribution and collection systems 5,848,897 3,904,888 - 9,753,785 - Infrastructure 1,566,232 3,709,130 19,547 5,294,909 - Vehicles 37,390 374,945 472,742 885,077 505,734 Equipment 282,409 1,038,158 51,564 1,372,131 197,229

Less accumulated depreciation (4,766,509) (10,428,825) (512,639) (15,707,973) (621,037)

Net capital assets being depreciated 3,753,140 5,590,832 482,048 9,826,020 81,926

Net capital assets 4,762,154 5,639,552 503,339 10,905,045 81,926

Total noncurrent assets 4,762,154 5,639,552 763,046 11,164,752 81,926

Total assets 12,099,403 10,176,233 1,920,048 24,195,684 1,451,930 DEFERRED OUTFLOWS OF RESOURCES Pension plan deferrals 105,672 158,509 - 264,181 - LIABILITIESCurrent liabilities:

Accounts payable 72,247 16,861 49,387 138,495 - Other current liabilities - 15,784 - 15,784 - Compensated absences 16,830 52,834 - 69,664 - Unearned advances - - 259,707 259,707 - Deposits - 1,000 - 1,000 -

Total current liabilities 89,077 86,479 309,094 484,650 -

Noncurrent liabilities: Compensated absences 7,100 2,800 - 9,900 - Net pension liability 337,066 505,599 - 842,665 -

Total noncurrent liabilities 344,166 508,399 - 852,565 -

Total liabilities 433,243 594,878 309,094 1,337,215 - DEFERRED INFLOW OF RESOURCES Pension plan deferrals 58,616 87,924 - 146,540 - NET POSITIONNet investment in capital assets 4,762,154 5,639,552 503,339 10,905,045 81,926 Unrestricted 6,951,062 4,012,388 1,107,615 12,071,065 1,370,004

Total net position 11,713,216$ 9,651,940$ 1,610,954$ 22,976,110$ 1,451,930$

Business-type Activities

CITY OF SOLVANGStatement of Net Position

Proprietary FundsJune 30, 2017



Governmental Activities Internal-

Service FundOPERATING REVENUESSales of water 4,490,615$ -$ -$ 4,490,615$ -$ Service fees - 1,596,677 55,763 1,652,440 165,428 Miscellaneous 53,476 50,121 211 103,808 -

Total operating revenues 4,544,091 1,646,798 55,974 6,246,863 165,428

OPERATING EXPENSESSalaries and benefits 479,401 834,179 - 1,313,580 - Purchased power 109,084 187,570 - 296,654 - Transit operator - - 467,471 467,471 - Services and supplies 697,099 608,991 265,798 1,571,888 - Joint operating expenses 2,485,453 - - 2,485,453 - Depreciation and amortization 259,170 453,110 115,368 827,648 22,194

Total operating expenses 4,030,207 2,083,850 848,637 6,962,694 22,194

Operating income (loss) 513,884 (437,052) (792,663) (715,831) 143,234

NON-OPERATING REVENUES (EXPENSES)Operating subsidies - - 888,618 888,618 - Gain on capital assets - - 16,956 16,956 17,500 Interest and investment revenue 22,136 22,493 5,643 50,272 5,975 Net nonoperating revenues

(expenses) 22,136 22,493 911,217 955,846 23,475

Income (loss) before contributionsand transfers 536,020 (414,559) 118,554 240,015 166,709

Contributions and transfers: Transfers in 869,668 - 5,000 874,668 - Transfers out - (22,278) - (22,278) (37,390)

Capital contributions 102,409 90,875 21,291 214,575 -

Net contributions and transfers 972,077 68,597 26,291 1,066,965 (37,390)

Increase (decrease) in net position 1,508,097 (345,962) 144,845 1,306,980 129,319

Total net position, July 1 10,205,119 9,997,902 1,466,109 21,669,130 1,322,611

Total net position, June 30 11,713,216$ 9,651,940$ 1,610,954$ 22,976,110$ 1,451,930$



CITY OF SOLVANGStatement of Revenues, Expenses, and Changes in Fund Net Position

Proprietary Funds



Governmental Activities-Internal

Service Fund

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 4,531,628$ 1,660,993$ 55,991$ 6,248,612$ -$ Payments to suppliers (3,192,791) (661,882) (673,810) (4,528,483) - Payments to other funds for services (262,365) (163,206) (55,237) (480,808) - Payments from other funds for services - - - - 165,428 Payments for employees and benefits (420,248) (733,026) - (1,153,274) -

Net cash provided by (used for) operating activities 656,224 102,879 (673,056) 86,047 165,428

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers in 869,668 - 5,000 874,668 - Transfers out - (22,278) - (22,278) (37,390) Operating subsidies - - 897,068 897,068 - Interest paid (1,368) - - (1,368) - Repayment of internal balances (22,278) - - (22,278) - Receipt of internal balance repayments - 22,278 - 22,278 -

Net cash provided by (used for) noncapitalfinancing activities 846,022 - 902,068 1,748,090 (37,390)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale capital assets - - 16,956 16,956 17,500

Capital contributions 102,408 90,875 147,713 340,996 - Purchases of capital assets (640,332) (127,456) (30,366) (798,154) -

Net cash provided by (used for) capital and related financing activities (537,924) (36,581) 134,303 (440,202) 17,500

CASH FLOWS FROM INVESTING ACTIVITIES Interest receipts 17,918 18,691 5,716 42,325 5,026

Net cash provided by investing activities 17,918 18,691 5,716 42,325 5,026

Net increase (decrease) in cash and cash equivalents 982,240 84,989 369,031 1,436,260 150,564

Balances-beginning of the year 2,667,300 4,263,683 771,803 7,702,786 1,216,892

Balances-end of the year 3,649,540$ 4,348,672$ 1,140,834$ 9,139,046$ 1,367,456$


CITY OF SOLVANGStatement of Cash Flows

Proprietary FundsFor the Fiscal Year Ended June 30, 2017



Governmental Activities-Internal

Service FundReconciliation of operating income (loss) to net cash provided by operating activities:

Operating income (loss) 513,884$ (437,052)$ (792,663)$ (715,831)$ 143,234$ Adjustments to reconcile operating income to

net cash provided by operating activities:Depreciation expense 259,170 453,110 115,368 827,648 22,194

Change in assets and liabilities: Decrease (increase) in prepayments (99,257) (6,744) - (106,001) - Decrease (increase) in deposits - - - - - Increase (decrease) in net pension liability 53,624 84,233 - 137,857 - Increase (decrease) in compensated absences 6,099 14,029 20,128 -

Decrease (increase) in accounts receivable (12,463) 14,197 17 1,751 - Increase (decrease) in other liabilities (3,598) 2,889 - (709) - Increase (decrease) in accounts payable (61,235) (21,783) 4,222 (78,796) - Net cash provided by (used for)

operating activities 656,224$ 102,879$ (673,056)$ 86,047$ 165,428$

Noncash capital financing activities: None

CITY OF SOLVANGStatement of Cash Flows

Proprietary Funds For the Year Ended June 30, 2017



Retiree Medical AgencyTrust Fund Fund

ASSETS Cash and cash equivalents 485,099$ 38,683$ Assessments receivable - 44,821

Total assets 485,099$ 83,504$

LIABILITIESDeposits payable to Santa Ynez Valley Tourism Business Improvement District -$ 83,504$

Total liabilities -$ 83,504$

NET POSITION Held in Trust for other postemployment benefits 485,099$

CITY OF SOLVANG

Fiduciary FundsStatement of Fiduciary Net Position

June 30, 2017


RetireeMedical

Trust FundAdditions:

Contributions: Employer 53,638$ Investment Income: Net appreciation in fair value of investments 27,989

Total additions 81,627

Deductions: Benefits -

Total deductions -

Net increase 81,627

Net Position held in trust for other post employment benefits: Beginning of year 403,472

End of year 485,099$

CITY OF SOLVANGStatement of Changes in Fiduciary Net Position

Retiree Medical Trust FundFor the Fiscal Year Ended June 30, 2017


CITY OF SOLVANG Notes to the Basic Financial Statements

June 30, 2017

1. Summary of Significant Accounting Policies A. Reporting Entity

The City of Solvang is a municipal corporation governed by an elected five-member City Council. The accompanying financial statements present the government, its component units, entities for which the government is considered to be financially accountable. The Solvang Joint Powers Financing Authority is a legally separate corporate entity for which the City is financially accountable and is governed by the elected City Council. The Authority was formed to provide a method of financing public improvements, however there has been no activity since Fiscal Year 2009-10. The financial activities of the Authority are blended with those of the City and are reported in the City's governmental funds, and as capital assets of the City and debt obligations of the City. The Solvang Conference and Visitors Bureau is a nonprofit benefit corporation established to promote tourism within the city; and it is reported as a discretely presented component unit because the City is financially accountable for it and the City has assumed the obligation to provide financial support to the Conference and Visitors Bureau. Separate financial statements are not available for these component units. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims are recorded only when payment is due. Assets in the governmental funds that do not meet the availability criterion for recognition as revenue in the governmental funds are classified as a deferred inflow of resources as those resources are not available for spending in the current period.

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June 30, 2017

Note 1. Summary of Significant Accounting Policies (continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

Property taxes, sales taxes, transient occupancy taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period are considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Impact Fee Fund is a special revenue fund used to account for impact fees restricted by law to use only for the specific purpose of the fee.

The City reports the following major proprietary funds:

The water fund accounts for the operations of the City's water treatment and distribution system.

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

Additionally, the City reports the following fund type:

The internal service fund is used to account for the City's vehicle fleet and major equipment provided to other City departments on a cost reimbursement basis.

The City applies all applicable Financial Accounting Standards Board (FASB) pronouncements in reporting for its proprietary operations, and the provisions of GASB Statement Number 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's water and wastewater function and other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise and internal service funds are charges to customers for sales and services. Operating expenses for the enterprise and internal service funds include the costs of sales and services, administration costs and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

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June 30, 2017 Note 1. Summary of Significant Accounting Policies (Continued)

D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The City is authorized by its most recent investment policy to invest in the State of California Local Agency Investment Fund, U.S. Treasury bonds, bills, and notes, obligations issued by U.S. Government agencies, banker’s acceptances, repurchase agreements, commercial paper, money market funds, time deposits and demand accounts. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, negotiable certificates of deposits, and short term investments with original maturities of three months or less from the date of acquisition.

Investments for the City are reported at fair value. The State Local Agency Investment Fund is operated in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares. 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are not shown net of an allowance for uncollectibles. Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Santa Barbara collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt. Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan”. Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City. 3. Inventories and Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Such prepayments are accounted for using the consumption method in the governmental funds.

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June 30, 2017

Note 1. Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, and Net Assets or Equity (Continued)

4. Capital Assets Capital assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items). They are reported in the applicable governmental-type or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($100,000 for infrastructure type assets) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Under the GASB 34 Implementation Rules, the City is a Phase 3 entity and was not required to record infrastructure assets existing or acquired prior to July 1, 2002 at the date these new financial reporting standards were implemented. The City has not recorded such assets. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings and improvements 7 - 50 Public domain infrastructure 50 System infrastructure 50 Vehicles and equipment 5 - 10 5. Compensated Absences and Other Post Employment Benefits It is the government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is a liability for a portion of unpaid accumulated vacation since the City does have a policy to pay certain amounts when an employee separates from service with the City. All vacation pay and applicable sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The City accrues each year as a liability in the government-wide financial statements a liability for the difference between the actuarially determined annual required contribution to its OPEB Plan and the amounts actually contributed by the City for each fiscal year.

6. Long-term Obligations In the government-wide financial statements, and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net assets. 7. Fund Balances – Governmental Funds Fund balances for governmental funds are reported in classifications based primarily on the extent to which the City is bound to honor constraints about the specific purposes for which amounts in those funds can be spent. These classifications include (1) nonspendable, (2) restricted, (3) committed, (4) assigned and (5) unassigned amounts.

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June 30, 2017 Note 1. Summary of Significant Accounting Policies (Continued) D. Assets, Liabilities, and Net Assets or Equity (Continued)

7. Fund Balances – Governmental Funds (Continued) Nonspendable amounts generally are items not expected to be converted into cash such as inventories and prepaid items. Restricted amounts include those where constraints placed on the uses of the resources are externally imposed by grantors, contributors, other governments or by laws or regulations. Committed amounts are those that can only be used for a specific purpose as determined by the City Council. Such committed amounts may be redeployed for other uses only by the direction of the City Council. Commitments are established, modified, or rescinded by the City Council adopting such action by resolution. Assigned amounts are fund balance amounts constrained by the City’s intent to be used for specific purposes as determined by the City Manager or City Administrative Services Director; Unassigned fund balance amounts are the residual amounts reported in only the general fund. When expenditures are incurred for which both restricted and unrestricted (committed, assigned or unassigned) amounts are available, the City considers restricted amounts to have been spent first. When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts.

8. Comparative Data Comparative total data for the prior year have been presented in order to provide an understanding of the changes in net position. Also, certain amounts presented in the prior year data have been reclassified to be consistent with the current years' presentation.

9. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the State of California Public Employees Retirement System (PERS) and additions to or deductions from the PERS fiduciary net position have been determined on the same basis as they are reported by the PERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 9. Fair Value Measurements – Investments. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted market prices in active markets for identical assets; Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs. The City makes investments primarily in the Local Agency Investment Fund (LAIF) of the State of California. The LAIF is valued by pricing methods viewed as Level 1 inputs. City investments in negotiable certificates of deposit are valued using Level 1 inputs.

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June 30, 2017

2. Reconciliation of Government-Wide and Fund Financial Statements

A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statements of net position. One element of that reconciliation explains that “capital assets are not financial resources and are not reported in the funds.” The details of this $12,046,702 difference are as follows:

Capital assets $ 20,631,512 Less: Accumulated depreciation (8,584,810) Net adjustment to increase fund balance – total governmental funds to arrive at net position – governmental activities $ 12,046,702

Another element of the reconciliation explains that "long-term liabilities" are not due and payable in the current period and, therefore, are not reported in the funds. The details of this $(388,956) difference are as follows:

Long-Term Obligations:

Net OPEB Obligation $ (226,413) Compensated absences payable (162,543) Net adjustment to decrease fund balance total governmental

Funds to arrive at net position - governmental activities $ (388,956)

B. Explanation of Certain Differences between the Governmental Fund Statement

of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities

The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $152,520 difference and other significant components of the difference are as follows:

Capital outlay $ 1,601,062 Depreciation expense (818,156) Abandonment of capital asset construction costs (216,977) Other post employment benefit expense (5021) Net pension liability (540,872) Other items 132,484 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net position of governmental activities $ 152,520

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June 30, 2017

3. Stewardship, Compliance, and Accountability

A. Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds, except repayments of internal balances in the general fund are budgeted as an expenditure for budgetary purposes. Appropriations lapse at fiscal year end. The appropriated budget is prepared by fund, function and department. The City Manager may make transfers of appropriations within a department. Transfers between departments and other changes require City Council approval. The legal level of control is the department and fund level. The Council made supplemental appropriations during the fiscal year. Encumbrance accounting is not employed in governmental funds.

4. Detailed Notes on All Funds

A. Deposits and Investments

Deposits and investments at June 30, 2017 consisted of the following: Pooled demand deposits $ 1,840,437 Pooled investments (including $38,683 in fiduciary funds) 21,359,172

Total deposits and investments $ 23,199,609 Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's policy for deposits is that they will be made only in institutions in California, they shall be insured or collateralized with United States backed securities, and time certificates of deposit shall have a maturity of less than three years. At June 30, 2017, $1,729,742 of the City's bank balances of $1,979,742 was exposed to credit risk as follows: Uninsured and collateral held by pledging banks agent but not in the City's name: $ 1,729,742

Of the discretely presented component unit’s bank balance of $91,494, $91,494 was insured and not exposed to credit risk.

Investments - At June 30, 201, the City had the following investments.

Type Investment Average Maturity Fair Value Negotiable time deposits 2 years $ 981,177 State Investment Pool (LAIF) 194 Days 20,377,995 $ 21,359,172

Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits the City's investment portfolio to maturities of five years or less. Credit Risk - State law limits investments in various securities to certain level of risk ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with State law as regards securities ratings. The City’s investment in the State Investment Pool is unrated. Custodial Credit Risk - For an investment, custodial credit risk is the risk that, in the event of the failure of a counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy specifies that securities are to be held by a third party, other than the counterparty, in the City's name, whenever possible. The investment in the LAIF is not subject to custodial credit risk.

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June 30, 2017

4. Detailed Notes on All Funds (Continued)

A. Deposits and Investments

The investment in the LAIF is valued using level 1 inputs. The City is the fiduciary for the City’s Other Post Employment Benefit Trust (OPEB). At June 30, 2017, the City had invested $485,099 in the California Employer’s Retiree Benefit Trust (CERBT) for the purpose of funding such retiree benefits.

B. Receivables Receivables as of year-end for the government’s individual major and nonmajor funds in the aggregate, net of the applicable allowances for uncollectible accounts, are as follows:

General Fund and Internal Service

Impact Fee

Fund Nonmajor

Funds Total

Governmental Water

Wastewater Nonmajor Proprietary

Accounts $ 72,621 $ - $ - $ 72,621 $ 723,746 $ - Taxes 631,526 - - 631,526 - - Interest 22,510 5,846 1,335 29,691 17,126 2,451 Notes - 22,931 - 22,931 Governments 82,192 - 289,577 371,769 - 272,899 Totals $ 808,849 $28,777 $ 290,912 $ 1,128,538 $ 740,872 $ 275,350

C. Interfund Transfers, Receivables and Payables

1. The composition of interfund transfers of June 30, 2017 is as follows:

Transfers out: General

Fund Non-Major

Funds Internal Service

Water Enterprise

Fund

Wastewater Enterprise

Fund

Total

Transfers General fund $ - $ 150,786 $ $ $ $150,786 Transit fund - 5,000 5,000 Enterprise funds 810,000 - 37,390 22,278 869,668 Nonmajor funds 280,686 - $ - - $ 280,686 Totals $ 1,090,648 $ 155,786 $ 37,390 $ - $ 22,278 $ 1,306,140

The primary purpose of the transfers out of the general fund was to provide funding for water system improvements instead of borrowing funds from external parties. The $229,411 due from other funds in the general fund represents temporary cash flow advances primarily made to fund capital projects and will be repaid upon collection of intergovernmental grants.

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June 30, 2017 4. Detailed Notes on All Funds (Continued) D. Capital Assets Capital asset activity relating to governmental activities for the year ended June 30, 2017 was as follows:

Governmental activities: Beginning Balance Increases Decreases

Ending Balance

Capital assets, not being depreciated

Land $ 1,943,104 $ - $ - $ 1,943,104

Construction in progress 419,645 1,203,603 (216,975) 1,406,273

Total capital assets, not being depreciated 2,362,749 1,203,603 (216,975) 3,349,377

Capital assets, being depreciated:

Buildings 3,402,544 - - 3,402,544

Machinery and equipment 691,036 - (11,997) 679,039

Internal service fund – vehicles/equipment 755,218 - (52,255) 702,963

Improvements 4,824,876 - - 4,824,876

Infrastructure-street system 7,978,218 397,458 8,375,676

Total capital assets being depreciated 17,651,892 397,458 (64,252) 17,985,098

Less accumulated depreciation for:

Buildings (1,557,155) (80,085) - (1,637,240)

Machinery and equipment (628,955) (21,481) 11,997 (638,439)

Internal service fund (651,098) (22,194) 52,255 (621,037)

Improvements (2,831,647) (245,289) - (3,076,936)

Infrastructure-street system (2,760,893) (471,301) - (3,232,194)

Total accumulated depreciation (8,429,748) (840,350) 64,252 (9,205,846)

Total capital assets, being depreciated, net 9,222,144 (442,892) - 8,779,252

Governmental activities capital assets, net $ 11,584,893 $ 760,711 $ (216,975) $ 12,128,629

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June 30, 2017

4. Detailed Notes on All Funds (Continued) D. Capital Assets (Continued) Capital asset activity relating to business-type activities for the year ended June 30, 2017 was as follows:

Beginning Balance Increases Decreases

Ending Balance

Business-type activities: Capital assets, not being depreciated Land $ 112,819 $ - $ - $ 112,819 Construction in progress 1,511,466 171,530 (716,790) 966,206 Total capital assets, not being depreciated 1,624,285 171,530 (716,790) 1,079,025 Capital assets, being depreciated: Buildings and bus stop facilities 8,228,091 - - 8,228,091 Distribution and collection systems 8,863,694 890,091 - 9,753,785 Infrastructure 4,984,906 310,003 - 5,294,909 Vehicles 847,687 37,390 - 885,077 Equipment 1,275,277 96,854 - 1,372,131 Total capital assets being depreciated 24,199,655 1,334,338 - 25,533,993

Less accumulated depreciation for: Buildings (6,002,893) (196,391) (2,436) (6,201,720) Distribution and collection systems (6,477,207) (256,773) (6,733,980) Infrastructure (1,174,814) (193,727) (1,368,541) Vehicles (298,763) (110,994) (5,136) (414,893) Equipment (926,648) (69,763) 7,572 (988,839) Total accumulated depreciation (14,880,325) (827,648) - (15,707,973) Total capital assets, being depreciated, net 9,319,330 506,690 - 9,826,020 Business-type activities capital assets, net $ 10,943,614 $ 678,220 $ (716,790) $ 10,905,045

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June 30, 2017

4. Detailed Notes on All Funds (Continued) D. Capital Assets (Continued)

Depreciation and amortization expense was charged to functions/programs of the City as follows:

Governmental activities: General government $ 68.902 Public safety 6,250 Culture and recreation 163,052 Infrastructure streets 579,952 Vehicles- internal service fund 22,194

Total depreciation expense-governmental activities $ 840,350

Business-type activities: Water $ 259,170 Wastewater 453,110 Transit 115,368 Total depreciation expense-governmental activities $ 827,648

E. Long-Term Obligations Changes in Long-term liabilities Long-term debt activity for the 2017 fiscal year was as follows: Beginning

Balance Additions Reductions Ending Balance

Due Within One Year

Governmental Activities: Compensated absences $ 142,777 $ 79,766 $ 60,000 $ 162,543 $60,000 Total $ 144,761 $ 79,766 $ 60,000 $ 162,543 $60,000 Business-type Activities: Compensated absences $ 59,436 $ 69,664 $ 49,536 $ 79,564 $69,664 Total $ 59,436 $ 69,664 $ 49,536 $ 79,564 $69,664

The general fund is typically used to liquidate the liability for compensated absences applicable to the City’s governmental activities.

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June 30, 2017 5. Other Information

A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City is a member of the California Joint Powers Insurance Authority (California JPIA). The California JPIA provides general liability insurance to the City with a $50 million per occurrence and $50 million per year aggregate limit. The City also participates in the Insurance Authority’s workers compensation insurance program. The risk of loss is transferred to the California JPIA. The City is subject to retrospective premium adjustments under the arrangement. The uninsured risk retained by the City is $50,000 per incident for workers compensation claims, $20,000 per incident for general liability claims, and $5,000 per property damage claim. The Insurance Authority purchases commercial insurance for claims in excess of its deductible amounts which is $5 million for liability and $500,000 for workers compensation. Insurance transactions are accounted for in the general fund. Liabilities of the City are reported in the statement of net assets for the governmental activities when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. Settlements have not exceeded coverage for each of the past three fiscal years. There were no changes in the balances of claims liabilities during the past two years.

B. Contingencies and Commitments

Litigation. The City is involved in litigation incurred in the normal course of conducting City business. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Grants and allocations. Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

C. Operating Agreements Water Supply Agreement. The City has an agreement with the Santa Ynez River Water Conservation District, Improvement District One, wherein the District and The Central Coast Water Authority constructed and operate a joint water treatment facility and water conveyance system. The Authority financed the plant and system by selling revenue bonds, and in 1997, issued $198 million in refunding revenue bonds. The agreement is a take-or-pay obligation, and the City is obligated to pay amounts specified in the agreement whether or not water is treated or delivered. The amounts paid by the City are pledged by the Authority for repayment of the Authority's debt obligations. The City records these payments as operating expenses in its water enterprise fund.

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June 30, 2017

5. Other Information (Continued) D. Public Employee Pension Plan Plan Description - The plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS).The CalPERS is governed by a 13 member Board of Administration with six elected members, three appointed members and four ex officio members which include the State Treasurer, the State Controller, the Director of the California Department of Human Services and a designee of the State Personnel Board. Benefits Provided - The CalPERS provides retirement, disability and death benefits. Retirement benefits for “Classic” members (those hired before January 1, 2013) are defined as 2.5 percent of the employee’s final 12 months average compensation times the employee’s years of service (3.0 percent for safety employees). Employees with 5 years of continuous are eligible to retire at age 55 (age 50 for safety employees). Employees are eligible for service-related disability benefits regardless of the length of service. Five years of service is required for non-service-related disability eligibility. Disability benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Pre-retirement death benefits equal an employee’s final full-year salary. Both plans provide for a 2 percent Cost of Living Adjustment (COLA). The public safety plan is closed to new entrants. Retirement benefits for those members hired on or after January 1, 2013 are defined as 2% of the employee’s final 3 years average compensation times the employee’s years of service. Employees with 5 years of continuous are eligible to retire at age 52. Contributions – Section 20814 (c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ending June 30, 2016 (the measurement date), the active employee contribution rate to the PERF-C cost sharing plan ranged from 2 percent to 15.25 percent of annual pay, and the employer contribution rate ranged from 3.8 to 415 percent of annual pay. The City made employer contributions of $267,856 during the measurement period ended June 30, 2016. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions – At June 30, 2017, the City reported a liability of $3,411,989 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2015. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating governments, actuarially determined. At the June 30, 2016 measurement date, the City’s proportion was 0.03943 percent compared to 0.03911 percent at the June 30, 2015 measurement date. For the fiscal year ending June 30, 2017, the City recognized pension expense of $946,587 .At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

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June 30, 2017

5. Other Information (Continued) D. Public Employee Pension Plans (continued) Deferred Outflows Deferred Inflows of Miscellaneous plan: of Resources Resources Differences between expected and actual experience $ 9,823 $ (2,251) Changes in assumptions - (92,934) Net difference between projected and actual earnings on pension plan investments 779,037 (295,345) Changes in proportions and differences between

expected and actual contributions - (195,630) Pension contributions subsequent to the measurement date 267,856 - Safety plan: Differences between expected and actual experience - - Changes in assumptions - - Net difference between projected and actual earnings on plan investments - - Changes in proportions and differences between

expected and actual contributions - (7,446) Totals $ 1,056,716 $ (593,606)

The $267,856 reported as deferred outflows of resources is City contributions to the pension plan made subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the plan year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Miscellaneous and Safety Plans Measurement Period Deferred Outflows Ended June 30 (Inflows) of Resources 2018 $ (57,246) 2019 (44,848) 2020 172,067 2021 125,281 2022 - Thereafter -

Actuarial Assumptions – The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.75 percent Salary increases Varies by entry age and service Investment rate of return 7.65 percent, net of pension plan investment expense, including inflation

219


June 30, 2017

5. Other Information (Continued) D. Public Employee Pension Plans (continued) All other actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the fiscal years 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study can be obtained at the CalPERS website under Forms and Publications. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension cash flows. The expected rate of return was then set equivalent to a single equivalent rate calculated by CalPERS and rounded down to the nearest one quarter of one percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: New Strategic Real Return Real Return Asset Class Allocation Years 1-10 Years 11+ Global Equity 47.0% 5.25% 5.71% Global Fixed Income 19.0 .99 2.43 Inflation Sensitive 6.0 .45 3.36 Private Equity 12.0 6.83 6.95 Real Estate 11.0 4.50 5.13 Infrastructure & Forestland 3.0 4.50 5.09 Liquidity 2.0 (.55) (1.05)

Discount Rate – The discount rate used to measure the total pension liability was 7.65 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65 percent will be applied to all plans in the Public Employee Retirement Fund. Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.65 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.65 percent) or 1-percentage higher (8.65 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (6.65%) (7.65%) (8.65%) City’s proportionate share of the net pension liability Miscellaneous Plan $5,188,623 $3,370,661 $1,868,206 Safety plan $ 118,029 $ 41,328 $ (21,636)

Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

220


June 30, 2017

5. Other Information (Continued) E. Restricted Net Position and Fund Balances The $3,597,517 restricted amount in the governmental activities statement of net position represents amounts to be used only for specific purposes which restrictions are imposed by laws, formal agreements or other governments. F. Other Post- Employment Benefits Plan Description. The city administers the City’s retired employee’s healthcare plan, a single employer defined benefit health care plan. The plan provides medical benefits to eligible retired employees and their beneficiaries. The City’s plan is affiliated with the State of California PERS in so far as the City’s health insurance premium payments are paid to the PERS. The PERS through an aggregation of single employer plans pools administrative functions in regard to purchases of commercial health insurance policies and coverage. City resolutions and regulations assign the authority to establish and amend benefit provisions to the City. A separate OPEB trust fund has been established by the City. Funding Policy. The contribution requirements of plan members and the City are established and may be amended by the City. The required contribution is based on a projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined annually by the City Council. For the fiscal year ended June 30, 2017, the City contributed $121,194 of current year premiums (100% of total premiums) and $53,638 to prefund benefits. Plan members receiving benefits contributed no amounts of the total premiums. Annual OPEB Costs and the NET OPEB Obligation. The City’s annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of Governmental Accounting Standards Board Statement Number 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities over a period not to exceed 30 years. The following table shows the components of the City’s annual OPEB cost for the year, the amounts actually contributed to the plan, and changes in the City’s net OPEB obligation to the Plan:

Annual required contribution (ARC) $179,853 Interest on net OPEB obligation 14,390 Adjustments to the ARC (14,390) Annual OPEB expense 175,853 Contributions made (174,832) Change in net OPEB obligation 5,021 Net OPEB Obligation, beginning of year 221,392 Net OPEB Obligation, end of year $226,413

The City’s annual OPEB Cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for the last two fiscal years were as follows:

221


June 30, 2017

5. Other Information (Continued) F. Other Post- Employment Benefits (continued) Fiscal Year Annual OPEB Percentage Net OPEB Ended Cost Contributed Obligation June 30, 2017 $175,853 99.4% $226,413 June 30, 2016 $175,041 289.5% $221,392 June 30, 2015 $156,202 58.8% $553,025

Funding Status and Funding Progress. As of July 1, 2016, the most recent actuarial valuation date, the plan was 16.83 percent funded. The actuarial accrued liability for benefits was $2,397,892. And the actuarial value of plan assets was $403,472, resulting in an unfunded actuarial liability (UAAL) of $1,994,420. The covered payroll (annual payroll of active employees covered by the plan) was $2,539,234 and the ratio of the UAAL to the covered payroll was 78.54 percent. Actuarial valuations of an ongoing plan involve estimates of reported amounts and assumptions about the probability of occurrence of events into the future. Examples include assumptions about future employment, mortality, and health acre trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplemental information, following the notes to these financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to actuarial liabilities for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan ( the Plan as understood by the employer and the plan members) includes the types of benefits provided at the time of each valuation and the historical pattern of sharing benefits costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short term volatility in actuarial liabilities and the actuarial value of plan assets, consistent with the long-term perspective of the calculations. In the July 1, 2016 valuation, the entry age normal actuarial cost method was used. The actuarial assumptions include a 6.5 percent investment rate of return based on assumed long-term return on plan assets or employer assets, as appropriate and a 2.75 percent assumed rate of inflation. This is based on the long-term historical returns for surplus funds invested pursuant to the California Government Code. An annual health care trend rate of 4 percent was also used in the valuation. There were no plan assets at the valuation date. The UAAL is being amortized as a level percentage of payroll over 23 years, the remaining closed amortization period at June 30, 2016.

222


June 30, 2017

5. Other Information (Continued) G. Conduit Debt Obligation The City, in July 2013, in order to provide financial assistance to private sector entities for the construction of facilities deemed to be in the public interest, entered into a Master Lease and Sublease Agreement with the Banc of America Public Capital Corporation and the Solvang Lutheran Home, Inc in the amount of $3.2 million. The Agreement is a special arrangement of the City, payable solely by a pledge of rentals to be received from lease agreements between the parties and the Solvang Lutheran Home. The lease agreements do not constitute a debt or pledge of the faith or credit of the City, and accordingly have not been reported in the accompanying financial statements.

223


224

Required Supplementary Information

225


226

Original FinalActual

Amounts

Variance with Final Budget Positive

(Negative)

Fund Balance, July 1 9,568,138$ 9,568,138$ 9,568,138$ -$ Resources (inflows):

Property taxes 1,229,500 1,229,500 1,283,266 53,766 Sales taxes 1,185,000 1,185,000 1,453,808 268,808 Transient occupancy taxes 3,900,000 3,955,000 4,330,599 375,599 Other taxes 233,500 233,500 233,572 72 License and permits 163,000 163,000 183,868 20,868 Interest 18,000 18,000 48,294 30,294 Intergovernmental 5,000 5,000 5,000 - Charges for services 704,528 697,153 742,510 45,357 Miscellaneous 1,500 239,078 207,954 (31,124) Transfers in 153,369 153,369 150,786 (2,583)

Amounts available forcharges to appropriations 17,161,535 17,446,738 18,207,795 761,057

Charges to appropriations:General Government:Nondepartmental:

City council 37,200 37,200 37,800 (600) Other 39,616 96,616 61,346 35,270 OPEB 153,638 153,638 174,832 (21,194) Community support 248,750 268,750 268,750 -

Administration:Legal 80,000 80,000 79,052 948 General administration 1,140,467 1,140,467 1,047,096 93,371 Transfers out 810,000 1,085,000 1,090,686 5,686

Public Safety:Sheriff contract 1,636,000 1,636,000 1,571,299 64,701 Animal control 40,783 40,783 40,783 - Resource deputy 55,000 55,000 47,880 7,120 Mental health & 211 program 2,674 2,674 2,214 460

Culture and Recreation:Tourism 834,300 882,300 869,197 13,103 Parks and recreation 987,161 986,111 784,796 201,315

Community Development:City planning 448,566 504,066 434,362 69,704

Public works: Public works, streets, engineering 1,740,485 1,984,063 1,651,052 333,011

Total charges to appropriations 8,254,640 8,952,668 8,161,145 802,895

Fund Balance, June 30 8,906,895$ 8,494,070$ 10,046,650$ 1,563,952$

Required Supplementary Information

Budgetary Amounts

CITY OF SOLVANGBudgetary Comparison Schedule - General Fund


227

Note A.Revenues and Expenditures:

Sources/inflows resources:Actual amounts "available for appropriation" from budgetary

comparison schedule: 18,207,795$ Differences - budget to GAAP: Transfers in are a budgetary resource but are not revenues

for financial reporting purposes (150,786) The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes (9,568,138)

Total revenues as reported in the statement of revenues, expenditures and changes in fund balances - governmental funds 8,488,871$

Sources outflows of resources: Total charges to appropriations from budgetary comparison schedule 8,161,145$ Differences - budget to GAAP: Transfers out are a budgetary use but are not expenditures for financial reporting purposes (1,090,686)$

Total expenditures as reported in the statement of revenues, expenditures and changes in fund balances - governmental funds 7,070,459$

CITY OF SOLVANGBudgetary Comparison Schedule - General Fund

Note to RSIFor the Fiscal Year Ended June 30, 2017

Explanation of Difference between Budgetary Inflows and Outflows and GAAP

228

Original Final Actual Amounts

Variance with Final Budget

Positive (Negative)

Fund Balance, July 1 2,618,850$ 2,618,850$ 2,618,850$ -$ Resources (inflows):

Charges for services:Impact fees for:

Parking in lieu 24,752 24,752 26,573 1,821 Traffic mitigation 82,809 82,809 89,127 6,318 Park fee 23,706 23,706 9,658 (14,048) Drain - - 1,000 100 Affordable housing 126,036 126,036 51,344 (74,692)

Interest revenue 6,000 6,000 13,868 7,868

Amounts available forcharges to appropriations 2,882,153 2,882,153 2,810,420 (72,633)

Charges to appropriations:Special projects for:

Streets and traffic mitigation 60,000 160,000 51,660 108,340 Other projects 15,000 15,000 4,926 10,074

Total charges to appropriations 75,000 175,000 56,586 118,414

Fund Balance, June 30 2,807,153$ 2,707,153$ 2,753,834$ 45,781$

Note A. Explanation of Differences between Budgetary Inflows and GAAP and GAAP Revenues

Sources of Inflows/Resources: Actual amounts "available for appropriation" from budgetary comparison schedu 2,810,420$ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes (2,618,850) Total revenues as reported in the statement of revenues, expenditures and changes in fund balances - governmental funds 191,570$

CITY OF SOLVANGBudgetary Comparison Schedule - Impact Fee Special Revenue Fund


Budgetary Amounts

229

ActuarialAccrued UAAL as a

Actuarial Actuarial Liability Unfunded Percentage ofValuation Value of (AAL) AAL Funded Covered Covered

Date Assets Entry Age (UAAL) Ratio Payroll Payroll

6/1/2009 -$ 1,918,713$ 1,918,713$ 0.00% 2,175,329$ 88.20%

7/1/2011 -$ 2,976,436$ 2,976,436$ 0.00% 1,884,642$ 157.93%

7/1/2014 -$ 2,900,235$ 2,900,235$ 0.00% 1,884,642$ 153.89%

7/1/2016 403,472$ 2,397,892$ 1,994,420$ 16.83% 2,539,234$ 78.54%

CITY OF SOLVANGOther Post Employment Benefits (OPEB)

Schedule of Funding ProgressJune 30, 2017

230

2015 2016 2017

Measurement Date 6/30/14 6/30/15 6/30/16

City's proportion of the net pension liability 0.04055% 0.03911% 0.00000%

City's proportionate share of the net pension liability 2,523,180$ 2,684,713$ 3,411,989$

City's covered employee payroll 2,346,026$ 2,413,263$ -$

City's proportionate share of the net pension liability as a percentage of covered employee payroll 107.55% 111.25% 0.00%

Plan's fiduciary net position as a percentage of the total pension liability 79.82% 78.40% 75.87%

Notes to the schedule:

Benefit changes: In fiscal 2017 there were no benefit changes.

Last Ten Years: This schedule is intended to show information for 10 years. Fiscal 2015 was the firstyear of implementation, and additional years information will be presented as it becomes available

Fiscal Year End

CITY OF SOLVANGSchedule of The City's Proportionate Share of the Net Pension Liability

(Last Ten Fiscal Years)As of June 30, 2017

Changes in assumptions: In fiscal 2016, the plan's discount rate was changed from 7.5 percent to 7.65 percent.

231

Contributions for the fiscal year ending 2015 2016 2017

Contractually required contribution 390,955$ 275,424$ 267,856$

Contributions in relation to the contractually required contribution (862,643)$ (275,424)$ (267,856)$

Contribution deficiency (excess) (471,688)$ -$ -$

City's covered employee payroll 2,413,263$ 2,212,540$ -$

Contributions as a percentage of covered employee payroll 35.75% 12.45% 0.00%

Notes to the schedule:

Plan valuation date: June 30, 2015

Last Ten Years: This schedule is intended to show information for 10 years. Fiscal 2015 was thefirst year of implementation, and additional years information will be presented as it becomes available.

June 30

CITY OF SOLVANGSchedule of The City of Solvang's Contributions

Public Employee's Retirement Plans(Last Ten Fiscal Years)

As of June 30, 2017

232

Combining and Individual Fund Statements

and Schedules

233


234

CapitalProjects

Traffic Safety Gas Tax

Local Transportation Measure A

Skytt Mesa Landscape

and LightingCity Projects

Fund Totals

AssetsCash and investments 2,176$ -$ 63,343$ 172,560$ 276,349$ -$ 514,428$ Receivables:

Interest 26 245 168 320 576 - 1,335 Intergovernmental 2,160 622 57,629 - 229,166 289,577 Prepayments - - - - - 275,000 275,000

Total assets 4,362$ 245$ 64,133$ 230,509$ 276,925$ 504,166$ 1,080,340$

Liabilities and Fund BalancesLiabilities:

Accounts payable -$ -$ -$ 1,924$ 11,462$ -$ 13,386$ Accrued liabilities - - 380 - - - 380 Due to other funds - 245 - - - 229,166 229,411

Total liabilities - 245 380 1,924 11,462 229,166 243,177

Fund balances: Nonspendable - - - - - 275,000 275,000 Restricted for highways and streets 4,362 - 63,753 228,585 265,463 - 562,163

Total fund balances 4,362 - 63,753 228,585 265,463 275,000 837,163

Total liabilities and fund balances 4,362$ 245$ 64,133$ 230,509$ 276,925$ 504,166$ 1,080,340$

CITY OF SOLVANGCombining Balance Sheet

Nonmajor Governmental FundsJune 30, 2017

Special Revenue Funds

235

CapitalProjects

Traffic Safety Gas Tax

Local Transportation Measure A

Skytt Mesa Landscape and Lighting

City Projects

Fund TotalsRevenues:

Special assessments -$ -$ -$ -$ 202,752$ -$ 202,752$ Intergovernmental - 106,221 86,084 370,363 - 921,209 1,483,877 Fines and forfeitures 8,878 - - - - - 8,878 Interest 36 327 324 617 - 85 1,389 Miscellaneous - - - - 1,072 - 1,072

Total revenues 8,914 106,548 86,408 370,980 203,824 921,294 1,697,968

Expenditures:Current:

Public works: Highways and streets - - - 400,639 104,729 1,041,648 1,547,016

Total expenditures - - - 400,639 104,729 1,041,648 1,547,016

Excess (deficiency) of revenues over expenditures 8,914 106,548 86,408 (29,659) 99,095 (120,354) 150,952

Other financing (uses): Transfers in - - - - - 280,686 280,686

Transfers out (10,000) (115,786) (25,000) (5,000) - - (155,786) Total other financing

(uses) (10,000) (115,786) (25,000) (5,000) - 280,686 124,900

Net change in fund balances (1,086) (9,238) 61,408 (34,659) 99,095 160,332 275,852

Fund balances, July 1 5,448 9,238 2,345 263,244 166,368 114,668 561,311

Fund balances, June 30 4,362$ -$ 63,753$ 228,585$ 265,463$ 275,000$ 837,163$

Nonmajor Governmental Funds

Special Revenue Funds

CITY OF SOLVANGCombining Statement of Revenues, Expenditures, and

Changes in Fund Balances


236

Original Final Actual

Variance With Final Budget

Positive (Negative)

Revenues:Fines and forfeitures 10,000$ 10,000$ 8,878$ (1,122)$ Interest - - 36 36

Total revenues 10,000 10,000 8,914 (1,086)


Highways and streets:Repairs and maintenance - - - -

Total expenditures - - - -

Excess (deficiency) of revenues over (under) expenditures 10,000 10,000 8,914 (1,086)

Other financing uses: Transfers out (10,000) (10,000) (10,000) -

Net change in fund balances - - (1,086) (1,086) Fund balance, July 1 5,448 5,448 5,448 -

Fund balance, June 30 5,448$ 5,448$ 4,362$ (1,086)$

Budgeted Amounts

CITY OF SOLVANGTraffic Safety Special Revenue Fund

Schedule of Revenues, Expenditures, andChanges in Fund Balance - Budget and Actual


237



Positive (Negative)

Revenues:Intergovernmental 118,369$ 118,369$ 106,221$ (12,148)$ Interest 200 200 327 127

Total revenues 118,569 118,569 106,548 (12,021)


Highways and streets:Street maintenance - - - -


Excess (deficiency) of revenues over expenditures 118,569 118,569 106,548 (12,021)

Other financing sources (uses): Transfers out (118,569) (118,569) (115,786) 2,783

Net change in fund balances - - (9,238) (9,238)

Fund balance, July 1 9,238 9,238 9,238 -

Fund balance, June 30 9,238$ 9,238$ -$ (9,238)$

Budgeted Amounts

CITY OF SOLVANGGas Tax Special Revenue Fund



238



Positive (Negative)

Revenues:Intergovernmental: TDA bike path allocation 4,408$ 4,408$ 4,998$ 590$ LSTP allocation 79,795 79,795 81,086 1,291 Interest 150 150 324 174

Total revenues 84,353 84,353 86,408 2,055

Expenditures:Current: Highways and streets: Storm water report - - - -


Excess(deficiency) of revenues over expenditures 84,353 84,353 86,408 2,055

Other financing sources (uses) Transfers out (25,000) (25,000) (25,000) -



Fund balance, June 30 61,698$ 61,698$ 63,753$ 2,055$

CITY OF SOLVANGLocal Transportation Special Revenue FundSchedule of Revenues, Expenditures, and

Changes in Fund Balance - Budget and ActualFor the Fiscal Year Ended June 30, 2017

Budgeted Amounts

239



Positive (Negative)

Revenues: Intergovernmental: Allocations from Santa Barbara

County 369,084$ 369,084$ 370,363$ 1,279$ Interest earnings 250 250 617 367

Total revenues 369,334 369,334 370,980 1,646


Highways and streets: Street overlays 278,000 278,000 276,382 1,618 Sidewalk repairs 42,000 42,000 39,450 2,550 Access ramps 85,000 85,000 81,626 3,374 Other projects 65,000 65,000 3,181 61,819

Total expenditures 470,000 470,000 400,639 69,361

Excess(deficiency) of revenues over expenditures (100,666) (100,666) (29,659) 71,007

Other financing sources: Transfers out (5,000) (5,000) (5,000) -

Total other financing sources(uses (5,000) (5,000) (5,000) -

Net change in fund balances (105,666) (105,666) (34,659) 71,007



Budgeted Amounts

MEASURE A Special Revenue FundSchedule of Revenues, Expenditures, and

Changes in Fund Balance - Budget and ActualFor the Fiscal Year June 30, 2017

240



Positive (Negative)

Revenues: Charges for services:

Special assessments 202,800$ 202,800$ 202,752$ (48)$ Interest earnings 120 120 1,072 952

Total revenues 202,920 202,920 203,824 904


Highways and streets:Open space maintenance 53,000 53,000 53,394 (394) Utilities 1,000 1,000 256 744 Water and sewer cost 66,000 66,000 35,582 30,418 Street light power 5,250 5,250 1,804 3,446 Repairs and maintenance 3,750 3,750 1,192 2,558 Professional and administrative 16,700 16,700 12,501 4,199

Total expenditures 145,700 145,700 104,729 40,971




Budgeted Amounts

CITY OF SOLVANGSkytt Mesa Landscaping and Lighting Maintenance District Special Revenue Fund

Schedule of Revenues, Expenditures, and Changes in Fund BalanceBudget and Actual

For the Fiscal Year June 30, 2017

241



Positive (Negative)

Revenues: Intergovernmental:

Bridge Seismic 1,603,575$ 1,603,575$ 921,209$ (682,366)$ Interest earnings 750 750 85 (665)

Total revenues 1,604,325 1,604,325 921,294 (683,031)


Highways and streets: Alisal Bridge seismic retrofit 1,693,753 1,693,753 915,291 778,462 Mission & fifth UUD - 275,000 - 275,000 Other projects - - 126,357 (126,357) Bicycle Bridge -AP Creek 10,000 - - -

Total expenditures 1,703,753 1,968,753 1,041,648 927,105

Excess (deficiency) of revenues over (under) expenditures (99,428) (364,428) (120,354) 244,074

Oher financing sources (uses) Transfers in 275,000 275,000 280,686 5,686

Net change in fund balances 175,572 (89,428) 160,332 249,760



Budgeted Amounts

CITY OF SOLVANGCity Capital Projects Fund



242

2017 2016Capital assets used in governmental activities:

Land 1,943,104$ 1,943,104$ Buildings 3,402,544 3,402,544 Improvements 4,824,876 4,824,876 Infrastructure - street system 8,375,676 7,978,218 Equipment 679,039 691,035 Construction in progress 1,406,273 419,645 Equipment-internal service operations 702,963 755,217

Total capital assets 21,334,475$ 20,014,639$

Investment in capital assets from:General fund 11,766,216$ 11,509,077$ Contributions from developers 710,214 710,214 Special revenue funds 7,191,935 6,992,276 Capital projects 963,147 47,856 Internal service 702,963 755,216

Total investment in capital assets used in governmental activities 21,334,475$ 20,014,639$

June 30

CITY OF SOLVANGComparative Schedule of Capital Assets Used In Governmental Activities

By Source

243

Land Buildings

Improvements and

Infrastructure EquipmentConstruction in Progress (CIP) Total Cost

General capital assetsJune 30, 2016 1,943,104$ 3,402,544$ 12,803,094$ 1,446,252$ 419,645$ 20,014,639$

Add:Expenditures from: General fund - - 269,136 - - 269,136

Special revenue funds - - 128,322 - 288,312 416,634 Capital projects - - - - 915,291 915,291 Internal service - - (52,253) - (52,253)

Deduct:Retirements and contributions - - - (11,997) (216,975) (228,972)

General capital assetsJune 30, 2017 1,943,104$ 3,402,544$ 13,200,552$ 1,382,002$ 1,406,273$ 21,334,475$

CITY OF SOLVANGSchedule of Changes in Capital Assets Used In Governmental Activities

By SourceFor the Fiscal Year Ended June 30, 2017

244

Land Buildings

Improvements and

Infrastructure EquipmentConstruction in

Progress Total CostFunction and Activity

General government:Parks 708,021$ 80,336$ 2,222,631$ 52,004$ 3,062,992$ Roads - - 9,165,243 66,682 1,179,917 10,411,842 Recreation - 1,265,098 344,977 2,602 - 1,612,677 Administration 89,850 612,832 807,448 497,418 - 2,007,548

Total general government 797,871 1,958,266 12,540,299 618,706 1,179,917 17,095,059

Internal Service:Vehicle operations - - - 702,963 - 702,963

Public safety:Emergency services - - - 28,158 - 28,158 Fire protection - 195,802 174,332 26,175 226,356 622,665

Total public safety - 195,802 174,332 54,333 226,356 650,823

Veterans building 63,483 1,224,476 426,781 6,000 - 1,720,740

Parking district 1,081,750 24,000 59,140 - - 1,164,890

Total general fixed assets 1,943,104$ 3,402,544$ 13,200,552$ 1,382,002$ 1,406,273$ 21,334,475$

CITY OF SOLVANGSchedule of Capital Assets Used in Governmental Activities

By Function and Activity June 30, 2017

245

Function and Activity June 30, 2016 Additions Deletions June 30, 2017

General government:Parks 3,062,992$ -$ -$ 3,062,992$ Roads 9,227,443 1,401,375 (216,975) 10,411,843 Recreation 1,612,677 - - 1,612,677 Administration 2,019,545 - (11,997) 2,007,548

Total general government 15,922,657 1,401,375 (228,972) 17,095,060

Internal service:Vehicle operations 755,216 (52,254) 702,962

Public safety:Emergency services 28,158 - - 28,158 Fire protection 422,978 199,687 - 622,665

Total public safety 451,136 199,687 - 650,823

Museums - - - -

Veterans building 1,720,740 - 1,720,740

Parking district 1,164,890 - - 1,164,890

Total general capital assets 20,014,639$ 1,601,062$ (281,226)$ 21,334,475$

CITY OF SOLVANGSchedule of Changes in Capital Assets Used In Governmental Activities

By Function and ActivityFor the Fiscal Year Ended June 30, 2017

246

Balance BalanceJuly 1, 2016 Increases Decreases June 30, 2017

ASSETSCash and cash equivalents 40,332$ 486,846$ (488,495)$ 38,683$ Assessments receivable 45,233 486,434 (486,846) 44,821

Total assets 85,565 973,280 (975,341) 83,504

LIABILITIESDeposits payable to Santa Ynez Valley

Tourism Business ImprovementDistrict 85,565$ 486,434$ (488,495)$ 83,504$

Total liabilities 85,565$ 486,434$ (488,495)$ 83,504$

CITY OF SOLVANGAgency Fund

Santa Ynez Valley Tourism Business Improvement DistrictStatement of Changes in Assets and Liabilities


247


248

STATISTICAL SECTION

This part of the Government’s comprehensive annual financial report presents detail information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Contents Page Financial Trends 87-91

These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time.

Revenue Capacity 92-99

These schedules contain information to help the reader assess the government’s most significant local revenue sources: taxes and water revenues.

Debt Capacity 100-103

These schedules present information to help the reader assess the affordability of the government’s current level of outstanding debt and the government’s ability to issue additional debt in the future.

Demographic and Economic Information 104-105

These schedules help the reader understand the environment within which the government’s financial activities take place.

Operating Information 106-108

These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.

249


250

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Governmental activities:Net investment in capital assets 9,551,357$ 11,107,857$ 12,300,996$ 12,696,203$ 11,919,888$ 12,342,031$ 12,057,865$ 11,748,077$ 11,584,893$ 12,210,555$ Restricted 4,186,813 3,979,184 2,844,598 2,489,588$ 2,892,272$ 3,061,331$ 3,155,589$ 3,011,325$ 3,121,123$ 3,597,517$ Unrestricted 5,876,210 6,205,849 6,489,841 6,672,046$ 6,307,453$ 6,810,793$ 5,935,965$ 7,488,153$ 8,798,516$ 8,738,328$

Total governmental activities net position 19,614,380$ 21,292,890$ 21,635,435$ 21,857,837$ 21,119,613$ 22,214,155$ 21,149,419$ 22,247,555$ 23,504,532$ 24,546,400$

Business-type activities:Net investment in capital assets 8,984,117$ 9,170,992$ 8,849,559$ 8,672,748$ 9,707,588$ 9,346,335$ 9,512,247$ 10,409,946$ 10,943,614$ 10,905,045$ Restricted 173,052 198,243 201,773 245,848$ -$ -$ -$ -$ -$ -$ Unrestricted 7,701,152 7,994,220 7,885,273 8,111,792$ 7,628,136$ 7,933,345$ 7,097,759$ 6,794,971$ 10,725,516$ 12,071,065$

Total business-type activities net position 16,858,321$ 17,363,455$ 16,936,605$ 17,030,388$ 17,335,724$ 17,279,680$ 16,610,006$ 17,204,917$ 21,669,130$ 22,976,110$

Primary government (City wide totals)Net investment in capital assets 18,535,474$ 20,278,849$ 21,150,555$ 21,368,951$ 21,627,476$ 21,688,366$ 21,570,112$ 22,158,023$ 22,528,507$ 23,115,600$ Restricted 4,359,865 4,177,427 3,046,371 2,735,436 2,892,272 3,061,331 3,155,589 3,011,325 3,121,123 3,597,517 Unrestricted 13,577,362 14,200,069 14,375,114 14,783,838 13,935,589 14,744,138 13,033,724 14,283,124 19,524,032 20,809,393

Total primary government net position 36,472,701$ 38,656,345$ 38,572,040$ 38,888,225$ 38,455,337$ 39,493,835$ 37,759,425$ 39,452,472$ 45,173,662$ 47,522,510$

Schedule 1City of Solvang

Net Position by ComponentLast Ten Fiscal Years

(accrual basis of accounting)

251

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Expenses:Governmental activities:

General government 1,281,938$ 1,161,056$ 1,365,736$ 1,517,579$ 1,586,533$ 1,494,094$ 1,578,629$ 1,417,776$ 1,664,564$ 2,031,468$ Public safety 1,846,271 1,844,664 1,331,385 1,359,241 1,538,315 1,621,864 1,639,642 1,647,930 1,637,483 1,675,872 Public works 898,366 1,246,541 1,582,810 1,508,809 1,517,240 1,444,453 1,792,316 1,789,458 2,045,387 2,499,428 Community development 491,168 431,801 397,297 363,259 398,088 426,574 455,085 876,912 463,965 434,362 Culture and recreation 1,505,286 1,549,866 1,408,087 1,819,964 1,667,929 1,676,227 1,701,142 1,713,110 1,858,427 1,865,952 Interest on long-term debt 105,365 65,151 25,657 7,244 4,878 3,114 - - -

Total Governmental Activities 6,128,394 6,299,079 6,110,972 6,576,096 6,712,983 6,666,326 7,166,814 7,445,186 7,669,826 8,507,082

Business-type activities:Water 3,786,981 3,985,638 4,162,536 4,082,761 3,878,275 4,312,353 5,067,560 4,765,816 4,077,790 4,030,207 Wastewater 1,554,414 1,583,351 1,701,547 1,709,935 1,710,790 2,021,585 1,800,351 1,799,891 1,733,416 2,083,850 Transit 558,479 640,800 695,584 713,694 729,923 702,479 732,221 708,781 701,114 848,637

Total Business-type Activities 5,899,874 6,209,789 6,559,667 6,506,390 6,318,988 7,036,417 7,600,132 7,274,488 6,512,320 6,962,694

Total Expenses 12,028,268$ 12,508,868$ 12,670,639$ 13,082,486$ 13,031,971$ 13,702,743$ 14,766,946$ 14,719,674$ 14,182,146$ 15,469,776$

Program Revenues:Governmental activities:

Charges for services:General government 397,820$ 444,771$ 443,583$ 432,056 399,456 512,314 467,882 552,656 497,867 499,324 Public safety 29,575 30,249 26,241 31,832 14,587 23,871 26,170 20,140 14,251 19,039 Public works 509,233 126,495 32,719 81,662 168,750 240,098 262,060 275,691 325,298 430,863 Community development 219,205 164,365 86,313 106,020 97,214 300,738 446,915 416,750 412,305 287,874 Culture and recreation 192,162 335,088 164,675 361,251 223,785 178,733 150,541 135,769 104,343 119,547

Operating grants and contributions 1,278,091 1,014,270 733,592 842,969 703,603 810,876 657,186 614,802 530,193 773,860 Capital grants and contributions 37,902 349,869 162,635 105,883 - 340,272 57,401 40,559 116,767 921,294

Total Governmental Activities 2,663,988 2,465,107 1,649,758 1,961,673 1,607,395 2,406,902 2,068,155 2,056,367 2,001,024 3,051,801

Business-type Activity:Charges for services:

Water 4,340,564 4,199,436 3,998,259 3,973,351 4,206,861 4,492,912 4,671,555 4,422,992 4,457,268 4,566,227 Wastewater 1,854,815 1,711,831 1,464,254 1,474,723 1,481,825 1,532,057 1,640,187 1,623,447 1,736,952 1,669,291 Transit 91,387 78,102 65,578 82,522 72,346 67,296 67,688 65,696 59,869 78,573

Operating grants and contributions 523,305 698,434 511,493 714,796 813,568 511,341 594,073 805,635 813,847 888,618 Capital grants and contributions 121,479 93,405 108,328 354,781 48,724 325,677 911,348 950,429 587,845 214,575

Total Business-type Activities 6,931,550 6,781,208 6,147,912 6,600,173 6,623,324 6,929,283 7,884,851 7,868,199 7,655,781 7,417,284

Total Program Revenues 9,595,538$ 9,246,315$ 7,797,670$ 8,561,846$ 8,230,719$ 9,336,185$ 9,953,006$ 9,924,566$ 9,656,805$ 10,469,085$


Changes in Net PositionLast Ten Fiscal Years

(accrual basis of accounting)

252

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Net (Expense)/Revenue:

Governmental Activities (3,464,406)$ (3,833,972)$ (4,461,214)$ (4,614,423)$ (5,105,588)$ (4,259,424)$ (5,098,659)$ (5,388,819)$ (5,668,802)$ (5,455,281)$ Business-type Activities 1,031,676 571,419 (411,755) 93,783 304,336 (107,134) 284,719 593,711 1,143,461 454,590

Total Net Expense (2,432,730)$ (3,262,553)$ (4,872,969)$ (4,520,640)$ (4,801,252)$ (4,366,558)$ (4,813,940)$ (4,795,108)$ (4,525,341)$ (5,000,691)$

General RevenuesGovernmental Activities:

Taxes:Property taxes 1,689,397$ 1,730,139$ 1,086,849$ 1,039,634$ 1,051,200$ 1,063,715$ 1,096,028$ 1,140,579$ 1,213,316$ 1,283,266$ Transient occupancy taxes 2,419,606 2,239,260 2,372,338 2,507,857 2,683,564 2,985,512 3,425,309 3,833,644 4,195,940 4,330,599 Sales taxes 1,148,040 1,072,646 1,000,325 972,838 1,066,086 1,122,814 1,153,845 1,241,436 1,226,777 1,453,808 Other taxes 199,237 209,149 238,163 269,238 208,006 226,792 237,256 247,173 248,247 233,572 Investment earnings 324,048 195,003 90,989 47,258 21,439 6,223 16,503 25,323 43,499 48,294 Miscellaneous 53,636 1,017 - - - - - - - Transfers 65,268 65,268 15,095 - (1,000) (51,090) (1,200) (1,200) (2,000) (852,390) Special Item - - - - (661,931) - - - - -

Total general revenues, transfers and special item 5,899,232 5,512,482 4,803,759 4,836,825 4,367,364 5,353,966 5,927,741 6,486,955 6,925,779 6,497,149

Business-type ActivityInvestment earnings - - - - - - - - - - Miscellaneous 1,553 - - - - - - - - - Transfers (65,268) (66,285) (15,095) 1,000 51,090 1,200 1,200 2,000 852,390

Total Business-type Activities (63,715) (66,285) (15,095) - 1,000 51,090 1,200 1,200 2,000 852,390

Total primary government 5,835,517$ 5,446,197$ 4,788,664$ 4,836,825$ 4,368,364$ 5,405,056$ 5,928,941$ 6,488,155$ 6,927,779$ 7,349,539$

Change in net position:Governmental activities 2,434,826$ 1,678,510$ 342,545$ 222,402$ (738,224)$ 1,094,542$ 829,082$ 1,098,136$ 1,256,977$ 1,041,868$ Business-type activities 967,961 505,134 (426,850) 93,783 305,336 (56,044) 285,919 594,911 1,145,461 1,306,980

Total Changes in Net Position 3,402,787$ 2,183,644$ (84,305)$ 316,185$ (432,888)$ 1,038,498$ 1,115,001$ 1,693,047$ 2,402,438$ 2,348,848$

Schedule 2 (continued)

Fiscal Year

City of SolvangChanges in Net Position

Last Ten Fiscal Years(accrual basis of accounting)

253

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

General FundNonspendable -$ -$ -$ 700 700$ 700$ 700$ 127,805$ 76,502$ 82,192$ Restricted - 14,726 12,553 13,291 14,290 18,680 12,206 Committed 3,043,543 3,194,614 2,998,543 3,570,693 3,619,902 4,127,320 4,127,320 Assigned - - - - - - Unassigned 2,179,145 2,365,309 3,256,119 3,767,385 4,871,659 5,345,636 5,824,932 Reserved 391,545 209,015 14,556 Unreserved 4,948,204 5,215,140 5,632,586

Total general fund 5,339,749$ 5,424,155$ 5,647,142$ 5,223,388$ 5,575,349$ 6,267,915$ 7,352,069$ 8,633,656$ 9,568,138$ 10,046,650$

All other governmental fundsNonspendable - -$ -$ -$ -$ -$ 275,000$ Restricted 3,065,222 2,874,888 3,052,778 3,143,036 2,997,035 3,180,161 3,315,997 Committed - - - Assigned - - - - - - - Unassigned - - - Reserved - - - Unreserved

Special Revenue 501,736 441,956 757,039 Capital Projects 2,232,411 2,314,170 2,087,559 Other Purposes 1,357,645 1,224,651 -

Total all other governmental funds 4,091,792$ 3,980,777$ 2,844,598$ 3,065,222$ 2,874,888$ 3,052,778$ 3,143,036$ 2,997,035$ 3,180,161$ 3,590,997$

Note: The provisions of GASB Statement Number 54 were applied prospectively from

fiscal year 2011 forward and that years prior to that have not been restated to conformwith the GASB 54.

(modified accrual basis of accounting)

Fiscal Year


Fund Balances of Governmental FundsLast Ten Fiscal Years

254

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017REVENUES

Taxes 5,457$ 5,252$ 4,538$ 4,761$ 5,009$ 5,555$ 5,922$ 6,463$ 6,885$ 7,301$ Licenses and permits 93 115 75 77 102 195 280 224 203 184 Fines and forfeits 28 30 26 27 15 24 22 11 9 9 Charges for services 1,079 784 629 844 707 907 984 982 956 920 Special assessments 69 69 72 36 59 75 75 111 153 203 Intergovernmental 1,149 1,209 877 764 677 1,077 638 731 619 1,489 Investment earnings 464 279 113 44 59 48 24 34 57 64 Other revenues 146 195 25 209 58 91 15 6 47 209

Total Revenues 8,485 7,933 6,355 6,762 6,686 7,972 7,960 8,562 8,929 10,379

EXPENDITURESGeneral government 1,136 1,244 1,231 1,294 1,342 1,335 1,393 1,547 1,951 1,669 Public safety 1,859 1,836 1,305 1,350 1,529 1,613 1,628 1,644 1,631 1,662 Culture and recreation 1,331 1,422 1,273 1,685 1,383 1,541 1,592 1,592 1,695 1,654 Public works 784 1,044 1,404 1,687 1,782 2,168 1,717 1,837 2,068 3,255 Community development 491 432 397 363 398 427 455 517 464 434 Housing - - - - - - - 394 - - Capital outlay 1,584 1,551 1,194 554 84 13 - - - - Transportation 298 - - - - - - - - - Intergovernmental - - 39 - - - - - - - Debt service: - - - - - - - - - -

Costs of issuance - - - - - - - - - - Principal 343 359 414 25 - - - - - - Interest 132 71 26 7 5 3 - - - -

Total expenditures 7,958 7,959 7,283 6,965 6,523 7,100 6,785 7,531 7,809 8,674

Excess (Deficiency) of Revenues over Expenditures 527 (26) (928) (203) 163 872 1,175 1,031 1,120 1,705

Other Financing Sources (Uses)Transfers in 406 388 50 198 286 192 169 161 176 431Transfers out (341) (321) (35) (198) (287) (193) (170) (162) (178) (1,246)

Total Other Financing Sources (Uses) 65 67 15 - (1) (1) (1) (1) (2) (815)

Net change in fund balances 592$ 41$ (913)$ (203)$ 162$ 871$ 1,174$ 1,030$ 1,118$ 890$

Debt service as a percentage of noncapital expenditures 7.69% 6.67% 7.35% 0.54% 0.08% 0.05% 0.00% 0.00% 0.00% 0.00%

(modified accrual basis of accounting)

Fiscal Year


Changes in Fund Balances of Governmental FundsLast Ten Fiscal Years

(In Rounded Thousands of Dollars)

255

Fiscal Real Personal Total DirectYear Property Property Totals Tax Rate

2007-2008 950,539 19,265 931,274$ 1.00%

2008-2009 964,774 17,767 982,541$ 1.00%

2009-2010 937,740 32,640 970,380$ 1.00%

2010-2011 932,954 32,484 965,438$ 1.00%

2011-2012 923,105 32,296 955,401$ 1.00%

2012-2013 924,661 32,642 957,303$ 1.00%

2013-2014 934,243 35,746 969,989$ 1.00%

2014-2015 979,763 32,966 1,012,729$ 1.00%

2015-2016 1,041,231 30,866 1,072,097$ 1.00%

2016-2017 1,105,535 32,355 1,137,891$ 1.00%

Source: County of Santa Barbara Assessor's Office

Assessed Taxable Values

Note: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property maybe increased by an inflation factor (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above (in our reports) represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Schedule 5Assessed Value and Estimated Actual Value of Taxable Property

Last Ten Fiscal Years(in thousands of dollars)

256

GeneralFiscal Basic Obligation School Special Year Rate Debt Rate Total Districts Districts

2007-2008 1.00% 0.00% 1.00% 0.04975% 0.06435%

2008-2009 1.00% 0.00% 1.00% 0.05000% 0.06108%

2009-2010 1.00% 0.00% 1.00% 0.05000% 0.06068%

2010-2011 1.00% 0.00% 1.00% 0.05000% 0.06187%

2011-2012 1.00% 0.00% 1.00% 0.05125% 0.00000%

2012-2013 1.00% 0.00% 1.00% 0.05256% 0.00000%

2013-2014 1.00% 0.00% 1.00% 0.05256% 0.00000%

2014-2015 1.00% 0.00% 1.00% 0.05256% 0.00000%

2015-2016 1.00% 0.00% 1.00% 0.05256% 0.00000%

2016-2017 1.00% 0.00% 1.00% 0.05256% 0.05762%

Source: California Municipal StatisticsNote: The City's direct property tax rates can only be changed with specific voter approval.

City Direct Rate Overlapping Rates


Direct and Overlapping Property Tax RatesFor The Last Ten Fiscal Years

(Rates per $100 of assessed value)

257

Percentage of Percentage ofTaxable Total City Taxable Total City

Assessed Taxable Assessed TaxableTaxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed ValueSanta Ynez Band of Mission Indians 27,063$ 1 2.38% Santa Ynez Band of Mission Indians 26,696$ 1 2.49%Worldmark,The Club 16,000 2 1.41% Worldmark,The Club 17,877 2 1.67%SYBCI California Hotel, No. 2, LLC 13,490 3 1.19% SYBCI California Hotel, No. 2, LLC 13,310 3 1.24%Alisal Guest Ranch 12,337 4 1.08% Alisal Guest Ranch 12,489 4 1.16%Palm Springs Inn, LLC 11,901 5 1.05% Solvang Hotel Group, LP 10,393 5 0.97%Solvang Hotel Group, LP 10,552 6 0.93% Palm Springs Inn LLC 7,519 6 0.70%Alisal Oaks, LLC 7,401 7 0.65% Alisal Oaks, LLC 7,290 7 0.68%Wine Manor Management, LLC 6,415 8 0.56% Wine Manor Management, LLC 6,321 8 0.59%Cook, Frieda Survivors Trust 6,272 9 0.55% Cook, Frieda Survivors Trust 6,178 9 0.58%Skytt Properties, LLC 6,245 10 0.55% M P Paso, LLC 5,121 10 0.48%

Total 117,676$ 10.34% Total 113,194$ 10.56%


Assessed Taxable Assessed TaxableTaxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed ValueSanta Ynez Band of Mission Indians 26,226$ 1 2.59% Santa Ynez Band of Mission Indians 26,108$ 1 2.69%Worldmark,The Club 17,543 2 1.73% Worldmark,The Club 17,467 2 1.80%Skytt Properties, LLC 14,927 3 1.47% SYBCI California Hotel, No. 2, LLC 13,026 3 1.34%SYBCI California Hotel, No. 2, LLC 13,078 4 1.29% Alisal Guest Ranch 12,743 4 1.31%Alisal Guest Ranch 12,477 5 1.23% Solvang Hotel Group, LP 10,144 5 1.05%Solvang Hotel Group, LP 10,190 6 1.01% Kabir Bluestar, LLC 8,879 6 0.92%NWK1, Inc 7,740 7 0.76% Alisal Oaks, LLC 7,116 7 0.73%Kabir Bluestar, LLC 7,375 8 0.73% Cook, Frieda Survivors Trust 6,030 8 0.62%Alisal Oaks, LLC 7,148 9 0.71% NWK1, Inc 5,889 9 0.61%Cook, Frieda Survivors Trust 6,057 10 0.60% Copper Alisal Holdings, LLC 5,520 10 0.57%

Total 122,761$ 12.12% Total 112,922$ 11.64%


Assessed Taxable Assessed TaxableTaxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed ValueSanta Ynez Band of Mission Indians 25,649$ 1 2.68% Santa Ynez Band of Mission Indians 25,199$ 1 2.64%Worldmark,The Club 17,141 2 1.79% Worldmark,The Club 16,821 2 1.76%Alisal Guest Ranch 12,795 3 1.34% NWK1, Inc 12,656 3 1.32%Solvang Hotel Group, LP 9,945 4 1.04% Alisal Guest Ranch 12,604 4 1.32%SYBCI California Hotel, No. 2, LLC 9,507 5 0.99% Solvang Hotel Group, LP 10,150 5 1.06%NWK1, Inc 8,844 6 0.92% AFTC-Solvang LLC 9,350 6 0.98%Wine Valley Inn, LLC 8,732 7 0.91% Wine Valley Inn, LLC 8,589 7 0.90%Alisal Oaks, LLC 6,977 8 0.73% Alisal Oaks, LLC 6,841 8 0.72%Cook, Frieda Survivors Trust 5,912 9 0.62% Cook, Frieda Survivors Trust 5,797 9 0.61%Copper Alisal Holdings, LLC 5,520 10 0.58% Frederik's Court, LLC 5,520 10 0.58%

Total 111,022$ 11.60% Total 113,527$ 11.88%


Assessed Taxable Assessed TaxableTaxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed ValueSanta Ynez Band of Mission Indians 25,030$ 1 2.59% Santa Ynez Band of Mission Indians 23,611$ 1 2.43%Worldmark,The Club 16,702 2 1.73% Solvang Mesa, LLC 17,189 2 1.77%Solvang Mesa, LLC 14,273 3 1.48% Worldmark,The Club 16,740 3 1.72%Alisal Guest Ranch 12,680 4 1.31% Alisal Guest Ranch 12,780 4 1.31%Solvang Hotel Group, LP 10,077 5 1.04% Solvang Hotel Group, LP 10,100 5 1.04%AFTC-Solvang LLC 9,292 6 0.96% AFTC-Solvang LLC 9,310 6 0.96%Wine Valley Inn, LLC 8,865 7 0.92% Wine Valley Inn, LLC 8,885 7 0.91%Alisal Oaks, LLC 6,790 8 0.70% Alisal Oaks, LLC 6,806 8 0.70%Frederik's Court LLC 6,429 9 0.67% Frederik's Court LLC 6,444 9 0.66%Cook, Frieda Survivors Trust 5,754 10 0.60% Cook, Frieda Survivors Trust 5,768 10 0.59%

Total 115,892$ 12.00% Total 117,633$ 12.10%


Assessed Taxable Assessed TaxableTaxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed ValueSolvang Mesa LLC 24,719$ 1 2.52% Solvang Mesa LLC 21,827$ 1 2.34%Worldmark, The Club 16,428 2 1.67% Worldmark, The Club 16,122 2 1.73%Alisal Guest Ranch 12,020 3 1.22% RSI Partners, LP 12,431 3 1.33%Solvang Hotels Group, LLC 11,203 4 1.14% Alisal Properties 12,380 4 1.33%Wine Valley Inn 8,331 5 0.85% Alisal Guest Ranch 11,221 5 1.20%Alisal Oaks LLC 6,674 6 0.68% Alisal Oaks LLC 6,544 6 0.70%FPA Old Mill Associates, LP 5,586 7 0.57% Santa Maria Hospitality Investors LP 6,210 7 0.67%Alisal Properties 5,433 8 0.55% AFTC-Solvang, LLC 5,810 8 0.62%Petersen Village Inn 4,618 9 0.47% Chimney Sweep 5,696 9 0.61%MP Paso, LLC 4,565 10 0.46% FPA Old Mission Associates, LP 5,477 10 0.59%

Total 99,577$ 10.13% Total 103,718$ 11.14%

Source: Santa Barbara County Assessor's Office

20102011

2009 2008

2013 2012

2015

2017 2016


Principal Property Tax Payers - Top Ten PayersLast Ten Fiscal Years

(Dollar Amounts in Thousands)

2014

258

City of SolvangProperty Tax Levies and Collections

Last Ten Fiscal Years

Collections within the Fiscal Total CollectionsYear of the Levy To Date

Fiscal YearTotal Tax Levy for Fiscal Year Amount

Percentage of Levy

Collections in Subsequent

YearsAmount

CollectedPercentage of

Levy

2006-07 1,091,877 1,068,943 97.9% 22,623 1,091,566 100.0%

2007-08 1,157,306 1,129,300 97.6% 27,576 1,156,875 100.0%

2008-09 1,220,447 1,185,911 97.2% 33,527 1,219,438 99.9%

2009-10 606,892 592,046 97.6% 14,049 606,095 99.9%

2010-11 600,711 590,463 98.3% 9,246 599,709 99.8%

2011-12 593,794 586,171 98.7% 6,717 592,887 99.8%

2012-13 599,125 593,058 99.0% 5,095 598,152 99.8%

2013-14 606,613 601,774 99.2% 3,760 605,533 99.8%

2014-15 631,868 626,577 99.2% 3,378 629,955 99.7%

2015-16 667,906 661,254 99.0% - 661,254 99.0%

2016-17 708,584 702,791 99.2% - 702,791 99.2%

Source: Santa Barbara County Auditor-Controller's Office

Schedule 8

259

Number Hotels Number Hotels

Fiscal Year

City Wide Occupancy

RateAverage Daily Room Rates

50 or More Rooms

Under 50 Rooms

2008 63% 127.01$ 1,643,591$ 774,804$ 6 10

2009 62% 115.36$ 1,525,979$ 709,924$ 6 10

2010 62% 113.94$ 1,658,127$ 630,028$ 6 10

2011 63% 122.52$ 1,840,846$ 667,602$ 6 10

2012 67% 133.07$ 1,947,309$ 735,631$ 6 10

2013 67% 139.62$ 2,178,318$ 820,489$ 6 10

2014 68% 147.54$ 2,469,434$ 964,365$ 6 11

2015 72% 171.08$ 2,766,680$ 1,063,561$ 6 17

2016 74% 191.84$ 2,813,475$ 1,368,750$ 6 18

2017 72% 188.51$ 2,852,189$ 1,477,881$ 6 18

Source: City of Solvang Finance Department


Transient Occupancy Tax - Principal Payers and Other DataLast Ten Fiscal Years

Concentration By Hotel Size Based on Number of Rooms

Transient Occupancy Tax Revenues in Dollars

260

FiscalYear

MonthlyBase Rate

RatePer CCF

(748 Gallons)

OutsideUsers

Rate per CCF

2008 55.48 3.05 4.58

2009 55.48 3.05 4.58

2010 55.48 3.05 4.58

2011 55.48 3.05 4.58

2012 62.361 2.852 4.28 3.353 5.03

2013 65.631 3.002 4.50 3.533 5.30

2014 69.081 3.162 4.74 3.713 5.57

2015 72.711 3.162 4.74 3.713 5.57

2016 75.431 3.452 5.18 4.053 6.08

2017 75.431 3.452 5.18 4.053 6.08

Source: City of Solvang Finance DepartmentNotes:(1) This rate is for a 5/8" meter(2) The City of Solvang went to tiered rates, effective November 21, 2011.This rate is for 0 to 1600 Cubic Feet.(3) This rate is for 1601 Cubic Feet and above.


Water RatesLast Ten Fiscal Years

261

Single Family Multi FamilyResidential Residential Commercial Other

Fiscal Year Totals

2008 2,184,126 593,629 1,007,392 299,301 4,084,448 1,612 87 213 52 1,964

2009 2,084,406 426,468 799,330 267,447 3,577,681 1,650 85 214 56 2,005

2010 1,974,510 421,805 965,034 227,364 3,588,713 1,650 85 217 56 2,008

2011 1,908,615 427,580 957,825 225,957 3,519,977 1,660 85 231 57 2,033

20121 2,131,635 402,620 887,067 426,504 3,847,826 1,659 82 264 113 2,118

2013 2,343,935 379,449 897,317 578,884 4,199,585 1,687 82 263 121 2,153

2014 2,755,279 353,455 771,435 733,473 4,613,643 1,695 69 226 118 2,108

2015 2,621,212 295,474 824,286 618,427 4,359,400 1,734 70 226 118 2,148

2016 2,667,228 289,436 819,771 588,547 4,364,982 1,767 70 226 118 2,181

2017 2,762,880 309,802 774,336 637,288 4,484,306 1,780 70 222 115 2,187

Source: City of Solvang Finance DepartmentNotes: (1) The City changed its rate structure in November 2011, and now includes a meter charge.

Class of Customer

Revenue in Dollars and Number of Customers


Water Revenue Concentration DataLast Ten Fiscal Years

Water Revenue Concentration Data

262

2017 2016 2015 2014

Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest RanchAtterdag Village Atterdag Village Atterdag Village Atterdag VillageChumash Casino Resort Chumash Casino Resort Chumash Casino Resort Chumash Casino ResortCity of Solvang City of Solvang City of Solvang City of SolvangHadsten House Hadsten House Hadsten House Hadsten HouseHoliday Inn Express Holiday Inn Express Inland Pacific Builders Holiday Inn ExpressMission Oaks Inland Pacific Builders Mission Oaks Inland Pacific BuildersRancho S.Y. Mobile Estates Mission Oaks Rancho S.Y. Mobile Estates Mission Oaks Solvang School Rancho S.Y. Mobile Estates Solvang School Rancho S.Y. Mobile EstatesWorldmark Worldmark Worldmark Solvang School

2013 2012 2011 2010

Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest RanchAtterdag Village Atterdag Village Atterdag Village Chumash Casino ResortChumash Casino Resort Chumash Casino Resort Chumash Casino Resort City of SolvangCity of Solvang City of Solvang City of Solvang Mission OaksMission Oaks Mission Oaks Mission Oaks Rancho S.Y. Mobile EstatesN&G Investments Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Solvang LLMOak Park Apartments Solvang LLM Solvang LLM Solvang Lutheran HomeRancho S.Y. Mobile Estates Solvang School Solvang School Solvang SchoolSolvang School Wine Valley Inn Wine Valley Inn Wine Valley InnWorldmark Solvang Worldmark Solvang Worldmark Solvang Worldmark Solvang

2009 2008

Alisal Guest Ranch Alisal Guest RanchChumash Casino Resort Chumash Casino ResortCity of Solvang City of SolvangMission Oaks Mission OaksPetersen Inn Mission Ready MixRancho S.Y. Mobile Estates Rancho S.Y. Mobile EstatesSolvang Lutheran Home Solvang Lutheran HomeSolvang School Solvang Mesa LLCWine Valley Inn Solvang SchoolWorldmark Solvang Worldmark Resort

Source: City of Solvang Finance Department

Fiscal Years Ended June 30


Principal Water Sale Purchasers - Top TenLast Ten Fiscal Years(In Alphabetical Order)

263

Fiscal Year

General Obligation

Bonds

Lease Revenue Bonds

Special Assessment

Bonds1 Notes

Capital Lease

Obligations

Capital Lease

ObligationsInstallment Agreement

Total Outstanding

Debt

Percentage of Personal Income Population

Debt per Capita

2008 - - 95 105 598 157 1,968 2,923 9.13% 5332 548.20$

2009 - - 65 65 309 81 1,777 2,297 6.87% 5446 421.78$

2010 - - - 25 - - 1,577 1,602 4.51% 5262 304.45$

2011 - - - - - - 1,366 1,366 3.77% 5289 258.27$

2012 - - - - - - - - 0%2 52813 -$

2013 - - - - - - - - 0%2 52923 -$

2014 - - - - - - - - 0%2 53633 -$

2015 - - - - - - - - 0%2 54893 -$

2016 - - - - - - - - 0%2 54513 -$

2017 - - - - - - - - 0%2 55933 -$

Source: City of Solvang Finance DepartmentNotes:(1) Presented net of original discounts and premiums(2) Personal income is disclosed on Schedule 17.(3) California Department of Finance

Governmental Activities Business-type Activities


Ratios of Outstanding Debt by TypeLast Ten Fiscal Years

(Dollars in Thousands except for Per Capita)

264

Governmental Unit:Debt

Outstanding

Estimated Percentage Applicable2

Amount Applicable to

Primary Government

Direct and Overlapping General Fund DebtSanta Barbara County Certificates of Participation 50,190,000$ 1.528% 766,903$ Santa Ynez Valley Union High School District COP 2,412,000 17.640% 425,477$ Buellton Union School District Cert of Participation 268,200 1.015% 2,722$

Total Gross Direct and Overlapping General Fund Debt 1,195,102$ Less: Santa Barbara County Supported Obligations (54,702)$

Total Net Direct and Overlapping General Fund Debt 1,140,400$

Overlapping Tax and Assessment DebtAllan Hancock Joint Community College District 126,654,576$ 4.579% 5,799,513$ Santa Ynez Valley Union School District 7,500,000$ 17.640% 1,323,000$ Buellton Union School district 7,441,637 1.015% 75,533$ Solvang School District 6,989,202 80.667% 5,637,980$

Total Overlapping Tax and Assessment Debt 12,836,025$

Subtotal, overlapping debt 13,976,426$ 3

City of Solvang direct debt - Total direct and overlapping debt 13,976,426$

Source: California Municipal Statistics, Inc.

(3) Excludes tax and revenue anticipation notes, enterpirse revenue, mortgage revenue and non-bonded capital lease obligations.


Direct and Overlapping Governmental Activities DebtAs of June 30, 2017

(2) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City, divided by the district's total taxable assessed value.

Notes: (1) Overlapping governments are those that coincide, at least in part with geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the property taxpayers of the City of Solvang. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

265

Total DebtApplicable

Total Debt To Limit asFiscal Debt Applicable PercentageYear Limit To Limit of Debt Limit

2008 142,580,884$ -$ 0.00%

2009 147,381,177$ -$ 0.00%

2010 145,560,815$ -$ 0.00%

2011 144,815,718$ -$ 0.00%

2012 143,310,234$ -$ 0.00%

2013 35,898,852$ -$ 0.00%

2014 36,374,577$ -$ 0.00%

2015 37,977,325$ -$ 0.00%

2016 40,226,713$ -$ 0.00%

2017 42,670,909$ -$ 0.00%

Assessed Value 1,137,890,901$

Debt Limit (3.75% of assessed value) 42,670,909

Less debt applicable to limit:General Obligation bonds 0

Total debt applicable to limit 0

Legal Debt Margin 42,670,909$

Sources: Santa Barbara County Assessor's Office and California Municipal Statistics, Inc.Note: California Government Code, Section 43605 sets the debt limit at 15%. The code sectionwas enacted when assessed valuations were based on 25% of full market value. This has since changed to100% of full market value. Thus the limit shown is 3.75%, one-fourth the limit of 15%.

Legal Debt Margin Calculation for Fiscal Year 2017


Legal Debt Margin InformationLast Ten Fiscal Years

266

SpecialFiscal AssessmentYear Collections Principal Interest Coverage

2008 37,152 30,000 8,228 0.97 2009 20,093 30,000 5,993 0.56 2010 52,458 65,000 2,437 0.78 2011 - - - - 2012 - - - - 2013 - - - - 2014 - - - - 2015 - - - - 2016 - - - - 2017 - - - -

Water Capital Less NetService Impact Operating Available

Revenues1 Fees Expenses2 Revenue Principal Interest Coverage

2008 4,180,995 61,224 3,679,908 562,311 181,345 106,277 1.96 2009 4,085,678 40,385 3,887,122 238,941 193,705 99,937 0.81 2010 3,972,347 44,858 3,872,448 144,757 200,366 87,256 0.50 2011 3,973,351 22,276 3,876,241 119,386 210,612 77,010 0.42 2012 4,206,861 23,504 3,669,942 560,423 221,387 66,235 1.95 2013 4,492,912 184,331 4,093,060 584,183 - - - 2014 4,671,555 481,283 4,842,994 309,844 - - - 2015 4,422,992 497,405 4,541,401 378,996 - - - 2016 4,457,268 294,184 3,851,606 899,846 - - - 2017 4,566,227 102,409 3,771,037 897,599 - - -

Wastewater Capital Less NetService Impact Operating Available

Revenues1 Fees Expenses2 Revenue Principal Interest Coverage

2008 1,610,699 60,550 1,554,414 116,835 68,828 1,265 1.67 2009 1,527,223 53,020 1,583,351 (3,108) 72,793 1,141 (0.04) 2010 1,429,716 63,470 1,263,965 229,221 81,129 3,111 2.72 2011 1,472,895 86,657 1,271,490 288,062 - - - 2012 1,481,825 25,220 1,245,897 261,148 - - - 2013 1,532,057 141,346 1,566,073 107,330 - - - 2014 1,640,187 265,619 1,338,696 567,110 - - - 2015 1,623,447 320,403 1,390,063 553,787 - - - 2016 1,736,952 201,661 1,315,685 622,928 - - - 2017 1,669,291 90,875 1,630,740 129,426 - - -

Source: City of Solvang Finance DepartmentNotes: (1) Water and wastewater revenues include operating revenues and interest revenues.(2) Operating Expenses exclude depreciation and amortization

Debt Service

Water Installment Agreement and Capital Lease

Wastewater Capital Lease Obligation

Debt Service

Special Assessment Bonds

Debt Service


Pledged Revenue CoverageLast Ten Fiscal Years

267

Fiscal Year Population1 Personal Income

Per Capita Personal Income2

Unemployment Rate3

2008 5332 170,693,316 32,013 5.00%

2009 5446 181,994,428 33,418 8.20%

2010 5262 186,790,476 35,498 8.80%

2011 5289 191,476,316 36,203 3.70%

2012 5281 203,973,344 38,624 3.30%3

2013 5292 207,123,588 39,139 3.00%3

2014 5363 218,397,449 40,723 2.60%3

2015 5489 218,550,024 39,816 7.10%3

2016 5451 214,409,634 39,334 7.14%3

2017 5593 224,435,904 40,128 3.45%3

Sources: City of Solvang Finance DepartmentNotes:(1) State of California, Department of Finance(2) United States Census Bureau(3) State of California, Employment Development Department


Demographic and Economic StatisticsFor The Last Ten Fiscal Years

268

EmployerNumber of Employees Rank

Percentage of Total City

Employment1 EmployerNumber of Employees Rank


Employment1 EmployerNumber of Employees Rank


Employment1

Alisal Guest Ranch 303 1 10.45% Alisal Guest Ranch 294 1 10.50% Alisal Guest Ranch 298 1 10.64%

Atterdag Village (formerly Solvang Lutheran Home) 170 2 5.86%



Santa Ynez Cottage Hospital 96 3 3.31%



Solvang Brew 75 4 2.59% Solvang Brew 75 4 2.68% Nielsens Market 69 4 2.46%

Solvang Unified School District 68 5 2.34% New Frontiers Market 70 5 2.50%

Solvang Unified School District 65 5 2.32%

Nielsens Market 62 6 2.14% Nielsens Market 69 6 2.46% Solvang Brew 65 5 2.32%

New Frontiers Market 55 7 1.90%Solvang Unified School District 67 7 2.39% New Frontiers Market 60 6 2.14%

Landsby 55 7 1.90% Hotel Corque 51 8 1.82% Hotel Corque 56 7 2.00%

Hotel Corque 47 8 1.62% Landsby 46 9 1.64% Landsby 56 7 2.00%

Root 246 42 9 1.45% Root 246 46 9 1.64% Root 246 53 8 1.89%

Totals 973 33.55% Totals 976 34.86% Totals 958 34.21%



Employment EmployerNumber of Employees Rank




Employment





Nielsens Market 75 3 2.34%Solvang Unified School District 100 3 3.03% New Frontiers Market 91 3 3.03%




Santa Ynez Cottage Hospital 67 5 2.09% Nielsens Market 63 5 1.91% Nielsens Market 75 5 2.50%

Solvang Brew 67 5 2.09% Root 246 50 6 1.52%Solvang Unified School District 65 6 2.17%

Root 246 60 6 1.88% New Frontiers Market 50 6 1.52% Root 246 58 7 1.93%

Hotel Corque 58 7 1.81% Hotel Corque 49 7 1.48% Hotel Corque 46 8 1.53%

New Frontiers Market 52 8 1.63% Hadsten House 43 8 1.30% City of Solvang 36 9 1.20%

Hadsten House 47 9 1.47% City of Solvang 36 9 1.09% Worldmark Trendwest 25 10 0.83%








Employment


Solvang Lutheran Home 120 2 4.00% Solvang Lutheran Home 125 2 4.17% Solvang Lutheran Home 125 2 4.17%

Santa Ynez Valley Cottage Hospital 82 3 2.73%



Root 246 67 4 2.23% Root 246 70 4 2.33% Root 246 70 4 2.33%

Nielsens Market 63 5 2.10% Nielsens Market 65 5 2.17% Nielsens Market 65 5 2.17%

New Frontiers Market 58 6 1.93% New Frontiers Market 60 6 2.00% New Frontiers Market 60 6 2.00%

Hotel Corque 52 7 1.73% Hotel Corque 54 7 1.80% Hotel Corque 54 7 1.80%




City of Solvang 35 9 1.17% City of Solvang 35 9 1.17% City of Solvang 35 9 1.17%

Worldmark Trendwest 29 10 0.97% Worldmark Trendwest 30 10 1.00% Worldmark Trendwest 30 10 1.00%


Notes:Sources: City of Solvang Finance Department, State of California Employment Development Department, and City of Solvang Employers

(1) Total City Labor Force is 2900, based on State of California Employment Development Department Data for FY 2016-2017.

Fiscal Year Ended June 30, 2014 Fiscal Year Ended June 30, 2013 Fiscal Year Ended June 30, 2012



Ten Largest Principal EmployersLast Nine Fiscal Years


269

Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

General government:City Council (Stipend)1 - - - - - - - - - - City clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 City attorney (Contract)2 - - - - - - - - - - City manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Economic development - - - - - - - - - - Finance 5.00 5.00 5.00 5.00 6.00 5.00 5.00 5.00 5.00 5.00

Public safety2:Police (Contract) - - - - - - - - - - Fire - - - - - - - - - -

Planning:Planning 2.00 2.00 2.00 2.00 2.00 1.75 2.22 2.22 2.22 2.22 Building and safety2 0.50 0.50 0.50 0.50 1.00 0.75 0.90 0.90 0.90 0.90

Public works:Engineering 2.50 2.50 2.50 2.50 2.50 0.60 0.65 1.20 1.20 1.55 Roads and streets 2.35 2.35 2.35 2.35 2.35 3.78 3.95 4.05 4.05 3.85 Maintenance 3.65 3.65 3.65 3.65 3.65 2.58 2.51 2.51 2.51 2.51

Parks:Parks and recreation 5.50 5.80 6.50 6.50 5.50 5.84 5.84 5.84 5.84 5.81

Water:Treatment and distribution 4.00 4.00 4.00 4.00 4.00 5.10 5.00 5.15 5.15 5.10

Wastewater:Collection and treatment 6.00 6.00 6.00 6.00 6.00 7.10 6.90 7.10 7.10 7.00

Totals 33.50 33.80 34.50 34.50 35.00 34.50 34.97 35.97 35.97 35.94

Source: The City of Solvang Finance Department.(1) City Council are elected officials, not employees and therefore not represented.(2) No full-time equivalent employees are shown for Police, Fire, City Attorney and previous years of Building and Safety as the City had contracts for those services.

Fiscal Year

Last Ten Fiscal YearsFull-Time Equivalent City Government Employees by Function/Program


270


Police1:Physical arrest 299 269 353 127 114 123 96 102 126 136Traffic violations 610 707 548 266 109 105 125 67 41 94

Fire1:Emergency responses 510 498 484 589 385 197 430 358 615 652 Fires extinguished 16 18 16 15 17 3 9 9 12 12

Planning:Building permits issued 299 141 124 151 143 215 218 146 230 212

Public Works:Miles streets maintained 2.27 4.37 1.15 0.25 3.50 0.66 0.44 0.44 4.00 4.00

Parks:Community events held 22 17 17 18 18 18 21 21 17 14

Water:Number new connections 9 7 2 2 2 25 38 40 33 14 Daily average water

production in MGD 1.48 1.38 1.15 1.31 1.27 1.38 1.38 1.05 0.94 0.98 Daily average water

consumption in MGD 1.37 1.33 1.25 1.20 1.18 1.26 1.26 0.96 0.86 0.89

Wastewater:Number new connections 9 7 2 2 - 26 35 43 33 14 Daily average treatment 33

in millions gallons(MGD) 0.60 0.69 0.73 0.72 0.77 0.75 0.71 0.69 33 0.65

Source: City of Solvang Finance Department and County of Santa Barbara(1) The City of Solvang contracts with the County of Santa Barbara to provide police services. The City is within the County jurisdiction for fire services.


Operating Indicators by Function/ProgramLast Ten Fiscal Years

Fiscal Year

271


Fire1

Stations - - - - - - - - - - Engines - - - - - - - - - -

Public Works:Miles of streets 22 22 25 25 25 25 25 25 25 25 Streetlights 7 7 12 12 12 12 12 12 12 12

Parks and recreation:Community centers 3 3 3 2 2 2 2 2 2 2 Parks 4 4 4 4 4 4 4 4 4 4 Park acreage 63 63 63 63 63 63 63 63 63 63

Water:Miles of mains 35 35 35 35 35 35 36 36 36 36 Number connections 1,964 2,017 2,017 2,019 2,018 2,043 2,156 2,178 2,211 2,225

Wastewater:Miles of sewers 40 42 42 42 42 42 42 42 42 42 Number connections 1,964 2,017 1,981 1,985 1,985 2,011 2,047 2,090 2,123 2,137 Maximum plant capacity 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 in millions of gallons

Source: City of Solvang Finance Department and the County of Santa Barbara(1) The City of Solvang contracts with the County of Santa Barbara to provide police services. The City is within the County jurisdiction for fire services.

Fiscal Year

Last Ten Fiscal YearsCapital Asset Statistics by Function/Program

City of SolvangSchedule 21

272

January 16, 2018

Below is an Advance Calendar of anticipated agenda items. The dates are tentative but reflect an overview of items to come. Items on this advance calendar are subject to change. Final agendas will be available on-line and at City Hall at least 72 hours prior to the meeting date.

MEETING DATE AGENDA ITEM ACTION

FEBRUARY 12, 2018 Waste Management Contract Extension Approve Mid-Year Budget Adjustments Approve Revised City Council Policies Approve Electronic Device Public Records Act Training Hear FEBRUARY 26, 2018 SOI/Annexation Land Use Scenarios Consider Annual/Future Scheduled Investment Policy Annual Review (March) Review Solvang Mesa LLMD Annual Assessment (March) Adopt Measure A 5-Year Program of Projects (March) Adopt Waste Management Contract Extension (February) Approve TDA Grant Funding (April) Adopt Appropriation Limit (June) Adopt FTA 5311 Grant Agreement (June) Adopt Annual Budget (June) Adopt Capital Improvement Program (August) Approve Stormwater Management Program Annual Report (November) Receive Conflict of Interest Code Review (June 2018) Discuss Cannabis Regulations (August 2018) Approve Appointment to Library Advisory Committee (July 2019) Approve Appointment of Mayor Pro Tem (December) Approve Award PSA – Storm Water Master Plan Approve Unscheduled Uses Permitted in the TRC Zone Consider Water/Sewer Connection Fees Approve Ordinance Amendment- Snowbird Meter Fees Consider Storm Water Resource Plan Consider SYCSD Recycled Water Planning Study Findings & Los Olivos Reques Consider Library Funding and Contract Consider Accessory Dwelling Unit (ADU) Ordinance Amendment Adopt Professional Services Agrmt- Storm Drain Master Plan Award Skytt Mesa Traffic Calming Study Results Hear OPEB Liability Presentation Hear

ADVANCE CALENDAR

273

Zoning Code Updates, Ord Amendment Adopt Public Works Municipal Code Updates, Ord Amendment Adopt *Due by June 30, 2018 Solvang Conference & Visitor’s Bureau Contract Renewal Approve Warrant Register (1st meeting of each month) Approve Sheriff’s Department Report (2nd meeting of each month) Receive SCVB Report (2nd meeting of each month & biennial report) Receive Fire Department Report (Quarterly) Receive VisitSYV Report (Quarterly) Receive

274

-----4--'t Q.s T- Difl A-LL

REQUEST TO ADDRESS THE CITY COUNCIL

I would like to speak to the Council:

~rW (Please Print)

Organization Represented, if any ____ _________ ---,-_ _ _

Subject0t"- £ v\A A / 5 i,\\ (3\ s-t~ ~ C,--\:--f

Agend~#: A') C-'-'v-"'-"'-_R_~

Resid~ Solvang Yes __ _

Date: Phone:

No ---

- -------- --

ANY PERSON DESIRING TO ADDRESS THE CITY COUNCIL

Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon to address the Council on any subject during the time that the Council is discussing the item. Following the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.

You are welcome to attend all City Council meetings and your interest in the conduct of public business is appreciated.

Council rules call for each speaker to limit remarks to 5 minutes, however being as succinct as possible. If speaking after someone who has given testimony on the item you wish to speak on and has covered what you would like to express, please state that you agree with previous speaker.

275

Release Date: Jan. 19, 2018

DISASTER NEWS

Loans for Businesses, Private Nonprofits, Homeowners and Renters

Disaster Field Operations Center

Small Business Loan Speaker

Media Contact: TRACY BEARD Phone: 805-688-0701

Sylvia Martini of the Small Business Development Center/ office will be in Solvang presenting the

Thomas Disaster Loans at Solvang City Hall

Date: Wednesday January 24, 2018 Time 5:00pm-7:00pm

Location: Solvang City Hall

Address: 1644 Oak Street Solvang, CA 93463

SBA Stands Ready to Assist California Businesses and Residents Affected by Wildfires, Flooding, Mudflows and Debris Flows

The Solvang Chamber of Commerce is hosting a meeting on Small Business Loan for the Thomas Disaster at the Solvang City Hall on Wednesday January 24, 2018, time is 5:00pm in the City of Solvang.

Low-interest federal disaster loans are now available to California businesses and residents because of President Trump's major disaster declaration, U.S . Small Business Administration' s Administrator Linda McMahon announced.

The declaration covers Los Angeles, San Diego, Santa Barbara and Ventura counties because of the wildfires, flooding, mudflows and debris flows directly related to the wildfires that began Dec. 4, 2017.

"SBA is strongly committed to providing California with the most effective and customer-focused response possible and with access to federal disaster loans to help California businesses and residents affected by this disaster," said McMahon. "Getting our businesses and communities up and running after a disaster is our highest priority at SBA." For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available to businesses regardless of any property damage.

Interest rates can be as low as 3.385 percent for businesses, 2.5 percent for private nonprofit organizations and 1.75 percent for homeowners and renters with terms up to 30 years . Loan amounts and terms are set by SBA and are based on each applicant 's financial condition.

To be considered for all forms of disaster assistance, survivors must first register with the Federal Emergency Management Agency at www.disasterassistance.gov. As soon as Federal-State Disaster Recovery Centers open throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centers is available by calling the SBA Customer Service Center at (800) 659-2955.

Sylvia Martini, CGBP Consultant I Small Business Development Center

1601 Carmen Drive, Suite 215 Camarillo, CA 93010

805-509-2238 ####

276



~ J - 1 ~ Name _ Y-lit~ ~ ~

\ . (Please Print)

Organization Represented, if any ~ l \l ~ C\J B Subject: \W,~pt \) £~ Agenda Item #: ---- - -Resident of Solvang Yes --- No ---

Date: \ \ 2- '2-) J1 \


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon to address the Council on any subject during the time that the Council is discussing the item. Following the discussion, and prior to .the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



277

Digital Media Dept.

More than a week has past since the #thomasflood and five weeks since the #thomasfire began, during this time the Solvang Conference & Visitors Bureau Crisis Communication Team stayed ready and able to pass along up-to-date information as we received it from various governmental agencies including: Cal OES, CHP, CalTrans, County of Santa Barbara Office of Emergency Services, Third District Supervisor Joan Hartman, and Nixie among others.

..... SOLVANG fllllfQTODO WlltU~~m g1Hl)ro

- ~·•••u•~•"·-~= CciU{o-vvti,a,, cwul, S~ev B(Mt"ba-vev FW<!/& 'R,ocui,Corullt""~

CALIFORNIA AND SANTA BARBARA COUNTY ROAD CONDITIONS Solvang and the Santa Ynez Valley are open and awaiting your visit

This webpage - SolvangUSA.com/thomasfire -received more than 8,900 pageviews since 12/4/17 when the #thomasfire began and remains a valuable resource for up-to-date emergency information.

,uo.-:!«tto!lood lf:,dar~. ~ l'G~~--J;yrtp.1kl/':11ttktnd r.L'I ICif!'.:ilfl. f:1/Wy:.JJ wi)J ;KYTr~~a

kt11t.16blW>«llffwtff. T?tt':t-tvw1t'tl,~ l!t ... ,-s 1.i n:w,.46m ~l!wyJ66 ~"'3.ul'.1Jtt:1st111mii.·

The information concerning the emergency situations affecting Solvang and the Santa Ynez Valley have been updated ten times during the past six weeks.

More than 500 people received five formal crisis communication mass emails from our Crisis Team along with five more informal emails. The official emails open rate 30.6% with a click-through rate of 13%.

Sodcil lvt~ From 12/4/2017, to 1/16/2018, SCVB uploaded more than 100 posts to a multitude of social media channels -about 1/3 of these posts were crisis related.

MOST POPULAR POST • 17,100 Reach • 1,600 Click-throughs • 2,100 Comments, Reactions

We offer our thoughts, prayers and support to all those affected by

this tragedy and give our sincerest

appreciation to all those working to restore our communities.

Solvang Conference & Visitors Bureau

Important Update Special Notice: Tt-avel lo Solvang and the Santa Ynez Valley

:::::~*:Qfi,e.11llow~lg.t~ storms and mudslides. Our thoughts, prayers and condolences Me offered

f.:~o,~;~;1;:;i.:,::tL~1Mnt h Etliltt :~. :1~" iflf~R ft projected to remain closed in Monteclto untll midday on ,.fonday,Ja.n~ 15th.

Travelers heading north from Los Angeles area to reach Solvang and the Santa Ynez Valley should travel North on Interstate S to H\W 166 (Mettler Exit) to HWY I 01 South to H\W 246 {Solvang hit}.

278



Name ~> ~003 (Please Print)

Organization Represented, if any _______________ _ _

~

Subject: \:U.t:>\J'Y\~ S \ -4\c_\ Df..\0--i:..$

Agenda Item#: ~\j SU C....

Resident of Solvang Yes ---No ,,,---

Date: L- 2-2=- \~ Phone: 605- :> ] 'O - Oc9 \1'


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon_ to address the Council on any subject during the time that the Council is discussing the item. Following the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



279



Name~7)UL1$ (Please Print)

Organization Represented, if any _________________ _

Subject: ~ -Sp+ltlF--'z... &::>E \f\ F:LUS-Ai'.\C....1-,

Agenda Item#: ~0)Eu,c::..

Resident of Solvang Yes --- NoJ

Date: l-'2:2..--\8;





280



Name D J\:SW cQ.Ol-t? 5 'T\t:U (Please Print)

Organization Represented, if any -------------------,----

Subject: _ __,\:O _ _;_~_L_\_G _ __ C_o___.~----"---=e..::....,,.___U_ \ ....:....__ _____ _

Agenda Item#: _ ___ _

Resident of Solvang Yes --- No ~

Date: ) · 2-1., ' \ f2 Phone: 59~ -&995


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon to address the Council on ariy subject during the time that the Council is discussing the item. Following the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



281



Organization Represented, if any _________________ _

\

Subject:_----'-LJ--\--, __......,_b_,__'f °'-----=-f'------#1/-------Agenda Item #:

Resident of Solvang Yes~ No ---

Phone: ------------





282



ase Print)

Organization Represented, if any __ ~~-----·-----------

Resident of Solvang Yes /" No ---

Date: Phone: - -------- ------------





283



N~e_ 1fa.~r;-o'--'-0t/J~~~ ~-4h/ ___ _ (Please Print)

Organization Represented, if any _________ ________ _

Resident of Solvang No ---

Date: / l-cv t16 --~------ Phone: ------------


Please walk to the rostrum and after receiving recognition from the Mayor, state your n~e and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon_to address the Council on any subject during the time that the Council is discussing the item. Following the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



284



~ Jc{ev: (Please Print)

Organization Represented, if any ______________ ----,---__ _

Subject: 1he- 1-k>V'CUJ ldovse:z t ,'fJodauJ Skcit-ue < Agenda Item#: __ <-___ _

Resident of Solvang Yes$- No ---

Date: __ t_-_-z.::_-z._ -__,/_X::....__ __ Phone: __ C._~---'-2,'_ - ,...,./5="'--'-4:-,,'~----


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon to address the Council on any subject during the time that the Council is discussing the item. Fallowing the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



285



Name ~d~ ~ 8./£/.S;::::?--V,d/-v' (Please Print)

Organization Represented, if any ________ _ ________ _

Subject: 1//r~ tPrC

r ~ Agenda Item#:_....,_ __ _

Resident of Solvang No ---

Date: r/~ /tr' ~1





286


I would like to speak to the Council: "'-

Name NCTD..~ WILI-IA~::S (Please Print)

' Organization Represented, if any M\SS., 0 0 \J \\7"'2> ~\2:..\"NE-{(> LLC,

Agenda Item#:_)-_,_ __ _

Resident of Solvang

Phone: 5G3~ (o~l,o - \ 2..5 \


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon_to address the Council on any subject during the time that the Council is discussing the item. Fallowing the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



287



Name '~eer.z-, L;c:.- /// 6 ---:'-/ _______________________ _

/ (Please Print)

Organization Represented, if any ~F 7 .

PE l3tYL{£-Z'"v- / A-: f7?YZ~J V I

/?7/~/t7a_/ ~e-:,:..v ~ Agenda Item#: /

Subject:

Resident of Solvang Yes ---

Date: / /c:1:2}/~ -----,'----,"--~-


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon.to address the Council on any subject during the time that the Council is discussing the item. Fallowing the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



288


I would like to speak to the Co cil:

Organization Represented, if any __ 'Z:Ja_.,____,."-'-c;t=n,c_'A~ ""'_f_=*-....,._ ______ _

Agenda Item #: ---- -

Resident of Solvang Yes-p- No ---

Date: 1/jA/J £} I 7

Phone:


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon_to address the Council on any subject during the time that the Council is discussing the item. Following the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



289



Name £\iSa, ~Mc\£C (Please Print)

Organization Represented, if any \'t\ \ $~ ({)'{\ \J \ f W ~ CUlif\er~ l Ll6

Agenda Item#:_ ]--+----

Resident of Solvang Yesi_ No ---

Phone: q(e 1, -4 5 15


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss, By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon to address the Council on any subject during the time that the Council is discussing the item. Following the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



290



Name ToJ?J l<ec/L (Please Print)

Organization Represented, if any -----------------

Subject: Je?tPr.r (!} iJ f! '71/'cn

Agenda Item#: 7 Resident of Solvang Yes


Please walk to the rostrum and after receiving recognition from the Mayor, state your name and address and proceed to comment upon the agenda item you wish to discuss. By virtue of Rules of Order adopted by the Council, no member of the audience will be called upon to address the Council on any subject during the time that the Council is discussing the item. Fallowing the discussion, and prior to the vote, the Mayor may recognize any member of the audience who wishes to speak on the motion.



291

Lisa Martin

From: Joan Jamieson Sent: Monday, January 22, 2018 2:34 PM To: Subject:

Brad Vidro; Holly Owen; Matt van der Linden; Lisa Martin Fwd: Williams Development Mission / Skytt Lumber yar

Sent from my iPhone

Begin forwarded message:

From: Karin Aitken <[email protected]> Date: January 22, 2018 at 2:21 :39 PM PST To: [email protected] Cc: [email protected], joan. [email protected], [email protected] Subject: Williams Development Mission / Skytt Lumber yar

Good afternoon. I am writing to you on behalf of the above property at the former Lumber Yard.

Mitch Williams wants to develop View Apartments on Mission. The artists renderings are much more desirable than what exists there today.

The project is a great location, and is a wonderful entrance to the valley city of Solvang. The architecture matches the historic mission Santa Inez as well as the remaining buildings on the North side of Mission.

Williams Construction is to build a desirable and attractive apartments that would be a plus for the valley and its residents. There is no denying that we have a housing shortage and this would give 42 families a Class A apartment to rent.

The undue burden of asking the private developer to pay for a Public Works project is short sighted.

It is my understanding that millions of dollars collected by the city through TOT should be paying for these projects. The resident of Solvang should not be burdened with paying for the use of the thousands of tourists who are using our sewer system, water and roads.

Please carefully reconsider before casting the next vote.

The existing Lumber Yard, useful and vibrant in its day is now a blight on the city. A concerned and voting resident.

Sincerely,

Karin Aitken 660 Pine Street Solvang, Ca 93463

Karin J. Aitken 1

292

)

From: <[email protected]> Date: January 21 , 2018 at 1 :19:32 PM PST To: <joan. [email protected]>Subject: Mission View Apartments

Ms. Jamieson:

I'm here to support Mitch Williams in his efforts to build Mission View Apartments. This is exactly the kind of new housing that Solvang and the Santa Ynez Valley needs within its borders. ·

My husband's business did employ many people, all were unable to live here and came from Lompoc because of the lack of affordable homes to rent.

This project is at a great location, at the entrance to the city from the valley side. The architecture matches the historic mission Santa Inez across the street, as well as the Veteran's Hall and Library complex next door.

For decades, it has been very difficult to build apartment units in this area. The numbers simply have not "penciled out." Therefore, our existing stock of apartments and townhouse units are old, dated and in need of upgrading. That only happens when new units are developed that create options, and competition.

There's currently a window where the economics are working for builders like Mitch to develop such units withoutgovernment favor nor subsidy. But he can only do this if the rules are clear, and don't burden the project with unanticipated costs.

·It looks as though the city is asking for this project to pay for off-si_te sewer infrastructure, perhaps already in need of upgrading. Isn't that what the normal fee structure is for, at $42,000 per unit? ·

I know Mitch Williams and know the quality work he does. This project will be no exception. I urge you to waive this excessive and unprecedented $250,000 mandate for offsite expenses.

Pamela Conner Sherman Right ChoiGe Realty-805 693-9191 RightChoice@PamelaConnerSherman .com 1607 Mission Drive, Suite 103 Solvang, CA 93463 DRE License #00843180

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Last Resolution No. 18-1031 - City of Solvang

Documents

Transcript of Last Resolution No. 18-1031 - City of Solvang