City of Port Hueneme

Copies of staff reports or other written documentation relating to each item of business referred to in this Agenda are available for public inspection in the Office of the City Clerk and on the City’s website at www.cityofporthueneme.org. Materials received after agenda packet distributions are made available to the public on the City’s website and in the City Clerk’s office at the same time they are provided to the Council. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, CONTACT THE OFFICE OF THE CITY CLERK AT (805) 986-6503 OR THE CALIFORNIA RELAY SERVICE. NOTICE 48 HOURS PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ALLOW PARTICIPATION IN THIS MEETING.

PORT HUENEME CITY COUNCIL REGULAR MEETING HOUSING AUTHORITY SPECIAL MEETING

MAY 21, 2018

PORT HUENEME CITY HALL: 250 NORTH VENTURA ROAD PORT HUENEME, CA 93041

6:00 PM CLOSED SESSION

CS1. ROLL CALL: Council Members Figg, Hensley, and Sharkey; Mayor Pro Tem Berg; and Mayor Schnopp

CS2. OPEN FORUM (10 Minutes)

The Council will hear public comments for a maximum of 10 minutes. A person may address the Council only on matters within the Council’s subject matter jurisdiction. The Council cannot enter into a detailed discussion or take any action on comments, but may refer them to the City Manager for follow up or scheduling on a subsequent agenda for discussion. Each speaker shall limit comments to three minutes.

With respect to every item of business to be discussed in Closed Session, pursuant to the California Government Code:

CS3. CONFERENCE WITH REAL PROPERTY NEGOTIATIONS (Pursuant to Government Code § 54956.8)

PROPERTIES (Port Hueneme, CA): Parcel at west end of Surfside Drive, APN 206-0-100-340.

Page 1 of 363 AGENCY DESIGNATED REPRESENTATIVES: Rod Butler, City Manager; Tony Stewart, Deputy Community Development Director;

NEGOTIATING PARTIES: Harvey Champlin of Champlin & Associates

UNDER NEGOTIATION: Negotiate price and terms of payment.

CS4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION

One potential action involving significant exposure to litigation pursuant to Section 54956.9(d) (1).

6:30 PM REGULAR MEETING AGENDA

Public Communications: Each member of the public may speak on any item appearing on the Agenda or that is within the subject matter jurisdiction of the City Council. Speakers will be allowed three minutes per Agenda item to address the Council. Members of the public who want to address the Council should fill out a speaker card located on the back table in the City Council Chamber and provide the speaker card to the City Clerk. If a speaker wishes to address an item on the Agenda please note the Agenda item number or topic on the speaker card to ensure that you are called to speak before the Council takes action on the Agenda item. All speakers wishing to address the Council on items not on the Agenda will be called on to speak during the Open Forum portion of the Agenda.

1. CALL TO ORDER, FLAG SALUTE

2. INSPIRATION: Council Member Jim Hensley

3. ROLL CALL: Council Members Figg, Hensley, and Sharkey; Mayor Pro Tem Berg; and Mayor Schnopp

4. AGENDA: (Amend / Approve)

5. REPORTABLE ACTIONS FROM CLOSED SESSION:

CITY COUNCIL WILL RECESS TO CONDUCT BUSINESS OF THE HOUSING AUTHORITY AND WILL RECONVENE, UPON CONCLUSION OF THE MEETING.

HOUSING AUTHORITY (HA) SPECIAL MEETING

HA1. ROLL CALL: Board Members , Brown, Figg, Hensley, and Sharkey; Vice Chair Berg; and Chair Schnopp

HA2. AGENDA REVIEW:

Page 2 of 363

HA3. CONSENT AGENDA:

A. APPROVAL OF MINUTES Action: It is recommended the Board approve the Minutes of the April 2, 2018 Regular Meeting.

B. CASH DISBURSEMENTS RATIFICATION Action: It is recommended the Board ratify the cash disbursements listing for the period from March 24, 2018 through May 11, 2018.

HA4. OPEN FORUM:

Anyone wishing to speak to the Board on any matter NOT on the Agenda may do so. Please approach the podium and give your name and city of residence clearly for the record. The Board cannot enter into a detailed discussion or take any action on comments, but may refer them to the Executive Director for follow up or scheduling on a subsequent agenda for discussion. Each speaker shall limit comments to three minutes.

HA5. NEW BUSINESS:

Chair verifies posting of notice by City Clerk Councilmembers declare any conflict Councilmembers declare any ex parte contacts Chair opens public hearing Staff presentation Public testimony Chair closes public testimony City Council discussion and possible action

A. PUBLIC HEARING: ADOPTION OF A RESOLUTION APPROVING THE HOUSING AUTHORITY’S FY 2018-2019 ANNUAL AND 5- YEAR PLANS AND AUTHORIZED THE EXECUTIVE DIRECTOR TO EXECUTE AND SUBMIT THE PLAN TO HUD Action: It is recommended the Board, upon completion of the Public Hearing:

1.) Adopt a Resolution approving the Housing Authority’s FY 2018-2019 Annual and 5-year Plans, which include the Public Housing Capital Fund Program Annual Statements and revisions, revised and updated Capital Fund Five- year Action Plan.; and

2.) Authorize the Executive Director to execute and submit all documents and certifications to comply with requirements of the U.S. Department of Housing and Urban Development (HUD) Annual Plan approval process.

Page 3 of 363 RESOLUTION NO.___

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF PORT HUENEME APPROVING THE FY 2018-19 PUBLIC HOUSING ANNUAL AND 5 YEAR PLAN CONSISTING OF THE CAPITAL FUND PROGRAM ANNUAL STATEMENT AND UPDATED CAPITAL FUND FIVE- YEAR ACTION PLAN, AND AUTHORIZING THE DIRECTOR TO EXECUTE AND SUBMIT ALL PLAN DOCUMENTS AND CERTIFICATIONS TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

HA6. BOARD COMMENTS:

RECONVENE TO CITY COUNCIL REGULAR MEETING.

6. OPEN FORUM: (30 Minutes)

The Council will hear public comments for a maximum of 30 minutes. A person may address the Council only on matters NOT appearing on the agenda and within the Council’s subject matter jurisdiction. Anyone not able to address the Council before the 30 minutes expires may do so during the “Continuation of Open Forum” period just prior to adjournment of the meeting. The Council cannot enter into a detailed discussion or take any action on comments, but may refer them to the City Manager for follow up or scheduling on a subsequent agenda for discussion. Each speaker shall limit comments to three minutes.

A. PROCLAMATION RECOGNIZING NATIONAL BEACH SAFETY/RIP CURRENT AWARENESS WEEK Action: Present proclamation acknowledging June 2 through June 9, 2018 as National Beach Safety/Rip Current Awareness Week.

7. CONSENT AGENDA – APPROVAL OF ITEMS 7A – 7H:

All matters listed on the Consent Agenda are to be considered routine by the governing body, and will be enacted by one motion in the form listed. There will be no discussion of these items unless, before the governing body votes on the motion to adopt, specific items are removed from the Consent Agenda for separate motions.

A. APPROVAL OF MINUTES Action: It is recommended the City Council approve the Minutes of the May 7, 2018 Special Meeting and Regular Meetings.

B. CASH DISBURSEMENTS RATIFICATION Action: It is recommended the City Council ratify the cash disbursements listing for the period April 28, 2018 through May 11, 2018.

Page 4 of 363

C. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FISCAL YEAR ENDED JUNE 30, 2017

Action: It is recommended that the City Council receive and file CAFR for the Fiscal Year Ended June 30, 2017.

D. ADOPTION OF A RESOLUTION AUTHORIZING ESTABLISHING A COMPREHENSIVE PAY SCHEDULE FOR ALL EMPLOYEES Action: It is recommended the City Council Adopt a Resolution entitled: RESOLUTION NO.____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, ADOPTING A SALARY RESOLUTION TO ESTABLISH A COMPREHENSIVE PAY SCHEDULE FOR ALL FULL-TIME EMPLOYEES, PART-TIME EMPLOYEES AND ELECTED OFFICIALS IN ACCORDANCE WITH CALPERS GUIDELINES

E. APPROVAL FOR THE CITY OF PORT HUENEME TO JOIN SISTER CITIES INTERNATIONAL AND DELEGATION OF THE AUTHORITY TO THE HONORABLE MAYOR SYLVIA MUNOZ SCHNOPP TO SEND A LETTER TO THE MAYOR OF THE CITY OF ENSENADA, BAJA CALIFORNIA, MEXICO PROPOSING TO ENTER A SISTER CITY AGREEMENT BETWEEN THE TWO CITIES

Action: It is recommended the City Council:

1.) Approve the City of Port Hueneme to join Sister Cities International (“SCI”).

2.) Delegate the authority to Mayor Sylvia Munoz Schnopp to send a letter to the Mayor of the City of Ensenada, Baja California, Mexico proposing to enter a sister city agreement to establish a sister city program.

F. ADOPTION OF RESOLUTIONS IN PREPARATION FOR THE 2018 MUNICIPAL GENERAL ELECTION

Action: It is recommended the City Council adopt the attached resolutions in preparation for the 2018 Municipal General Election.

Page 5 of 363 RESOLUTION NO.___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME CALLING FOR A MUNICIPAL GENERAL ELECTION REQUESTING CONSOLIDATION OF THE ELECTION, REQUESTING THE COUNTY CLERK TO RENDER SERVICES AND SUPPLIES TO THE CITY FOR THE ELECTION, AND AUTHORIZING THE BOARD OF SUPERVISORS TO CANVASS THE RETURNS

RESOLUTION NO.___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO MATERIALS SUBMITTED TO THE ELECTORATE AND THE COSTS THEREOF FOR THE MUNICIPAL GENERAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, NOVEMBER 6, 2018

G. SECOND READING AND ADOPTION OF ORDINANCE APPROVING DEVELOPMENT AGREEMENT NO. PHDA-850 WHEELHOUSE DISPENSARY, LOCATED AT 521 W. CHANNEL ISLANDS BLVD., SUITES #1-6

Action: It is recommended the City Council move to waive further reading of the subject Ordinance, direct reading by title only and approve the Ordinance as presented.

ORDINANCE NO.738

AN ORDINANCE APPROVING AND ADOPTING A DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 727 AND ORDINANCE NO. 734 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [WESTSIDE PROFESSIONAL MANAGEMENT, LLC, DBA "WHEELHOUSE"]

H. SECOND READING AND ADOPTION OF FIREWORKS SOCIAL HOST ORDINANCE Action: It is recommended City Council adopt an ordinance repealing Sections 5142 and 5143 of Part G of Chapter 2 of Article V of the City of Port Hueneme Municipal Code, and enact new Sections 5141, 5142, and 5143 of Part G of Chapter 2 of Article V, establishing host liability for fireworks violations.

Page 6 of 363 ORDINANCE NO.739

AN ORDINANCE OF THE CITY OF PORT HUENEME REPEALING SECTIONS 5142 AND 5143 OF PART G OF CHAPTER 2 OF ARTICLE V OF THE PORT HUENEME MUNICIPAL CODE, AND ENACTING NEW SECTIONS 5141, 5142 AND 5143 OF PART G OF CHAPTER 2 OF ARTICLE V RELATING TO FIREWORKS.

8. PUBLIC HEARING:

Mayor verifies posting of notice by City Clerk Councilmembers declare any conflict Councilmembers declare any ex parte contacts Mayor opens public hearing Staff presentation Public testimony Mayor closes public testimony City Council discussion and possible action

A. CONSIDERATION OF MAJOR MODIFICATION TO PLANNED DEVELOPMENT/CONDITIONAL USE PERMIT NO. PHCU-838 AND DEVELOPMENT AGREEMENT NO. PHDA-839 DBO INVESTMENTS PH, LLC. MEDICAL AND RECREATIONAL CANNABIS DISPENSARY WITH DELIVERY SERVICES, LOCATED AT 2675 N. VENTURA ROAD, SUITES #106-108

Action: It is recommended the City Council: (1) open the public hearing to take testimonial and documentary evidence; (2) close the public hearing and consider the evidence; (3) after considering the evidence, adopt the attached Resolution that conditionally approves Conditional Use Permit Application No. PHCU-838 Major Modification #1 and determines the project is categorically exempt from CEQA; (4) introduce the attached Ordinance which approves Development Agreement Application No. PHDA-839 Major Modification #1 accompanied by title only and waive further reading (with approval to follow at the next regularly scheduled City Council meeting); and (5) take such additional, related, action that may be desirable.

Page 7 of 363 ORDINANCE NO.____

AN ORDINANCE APPROVING AND ADOPTING AN AMENDED DEVELOPMENT AGREEMENT UNDER GOVERNMENT CODE SECTIONS 65864 TO 65869.5 AND ORDINANCE NO. 727 AND ORDINANCE NO. 734 OF THE PORT HUENEME MUNICIPAL CODE RELATING TO THE OPERATION OF A CANNABIS FACILITY [DBO INVESTMENTS PH, LLC]

B. CONSIDERATION OF MAJOR MODIFICATION TO PLANNED DEVELOPMENT/CONDITIONAL USE PERMIT NO. PHCU-836 AND DEVELOPMENT AGREEMENT NO. PHDA-837 HUENEME PATIENT CONSUMER CO-OP MEDICAL AND RECREATIONAL CANNABIS DISPENSARY WITH DELIVERY SERVICES, LOCATED AT 501 W. CHANNEL ISLANDS BLVD., SUITES #302-303

Action: It is recommended the City Council:

(1) open the public hearing to take testimonial and documentary evidence;

(2) close the public hearing and consider the evidence;

(3) after considering the evidence, adopt the attached Resolution that conditionally approves Conditional Use Permit Application No. PHCU-836 Major Modification #1 and determines the project is categorically exempt from CEQA, and ;

(4) introduce the attached Ordinance which approves Development Agreement Application No. PHDA-837 Major Modification #1 accompanied by title only and waive further reading (with approval to follow at the next regularly scheduled City Council meeting); and

Page 8 of 363 (5) take such additional, related, action that may be desirable. ORDINANCE NO.____

9. PUBLIC WORKS DIRECTOR REPORTS/COMMENTS:

A. AUTHORIZATION TO ENTER INTO A SEWER MAINTENANCE SERVICES AGREEMENT WITH THE OXNARD HARBOR DISTRICT

Action: It is recommended the City Council authorize entering into an agreement with the Oxnard Harbor District (District) to perform sewer maintenance services.

10. POLICE CHIEF REPORTS/COMMENTS:

A. MONTHLY CRIME UPDATE Action: Presentation on April crime statistics for the City.

11. CITY MANAGER REPORTS/COMMENTS:

A. RESOLUTION APPROVING PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS WITH HARVEY CHAMPLIN ASSOCIATES, LLC FOR DEVELOPMENT, CONSTRUCTION AND OPERATION OF A HOTEL FACILITY

Action: It is recommended the City Council adopt the attached resolution approving an agreement with Harvey Champlin Associates, LLC (the “Developer”), to possibly sell a single parcel of land located at or near the intersection of Market Street and E. Surfside Drive, adjacent to the beach and abutting the boundary of the Port, for the purpose of construction and operation of a hotel.

RESOLUTION NO._____

Page 9 of 363 12. COUNCIL MEMBERS' REPORTS, COMMENTS, AND REQUESTS FOR FUTURE AGENDA ITEMS:

13. CONTINUATION OF OPEN FORUM: The Council will allow a continuation of public comments, if necessary, due to exceeding the total time allotted in the earlier Open Forum section.

ADJOURNMENT: Regular Meeting on June 4, 2018, 6:00 p.m. at the City Hall Council Chambers.

STATE OF CALIFORNIA ) )ss. COUNTY OF VENTURA )

I declare, under penalty of perjury, that I am employed by the City of Port Hueneme and that I caused this agenda to be posted in the City Hall notice case on May 17, 2018.

______Michele Kostenuik, City Clerk

Page 10 of 363 CITY OF PORT HUENEME SPECIAL MEETING OF THE CITY COUNCIL

MAY 10, 2018

MINUTES

The Special Meeting of the Port Hueneme City Council was called to order by Mayor Sylvia Schnopp at 6:00 p.m. in the City Council Chamber at City Hall, 250 North Ventura Road, Port Hueneme, California. The City Clerk called the roll:

PRESENT: Council Members, Jonathan Sharkey, Jim Hensley; Mayor Pro Tem Will Berg and Mayor Sylvia Muñoz Schnopp. ABSENT: Council Member Tom Figg

Staff members present were: Rod Butler, City Manager; Linda Catherine Le, Deputy City Manager; Charles R. Green, City Attorney; Tony Stewart, Community Development Director; Michele Kostenuik, City Clerk.

AGENDA:

Member Sharkey, seconded by Member Hensley, moved to approve the Agenda. Motion carried 4-0 (Figg absent).

OPEN FORUM:

Mayor Schnopp asked if anyone present wished to speak on any matter not on the Agenda. None.

COMMUNITY DEVELOPMENT:

A. MUNICIPAL CODE UPDATE WORKSHOP Action: Presentation and discussion regarding proposed changes to the Municipal Code.

Tony Stewart, Community Development Director gave a PowerPoint presentation reviewing proposed changes to the City’s Municipal Code.

Discussion ensued among Council and staff. Suggested to present additional changes at a regular council meetings over the next few months and if necessary schedule a workshop.

ADJOURNMENT:

Mayor Schnopp, without objection, adjourned at 8:18 p.m. Next Regular Meeting to be held 7A Page 11 of 363 May 21, 2018 at 6:00 p.m. in the City Council Chamber.

Respectfully submitted,

______Michele Kostenuik City Clerk

APPROVED:

______MAYOR SCHNOPP

Page 13 of 363

CITY OF PORT HUENEME SPECIAL AND REGULAR MEETING OF THE CITY COUNCIL

MAY 7, 2018

MINUTES

The Regular Meeting of the Port Hueneme City Council was called to order by Mayor Sylvia Schnopp at 5:00 p.m. in the City Council Chamber at City Hall, 250 North Ventura Road, Port Hueneme, California.

SPECIAL CLOSED SESSION:

City Attorney referred to the items to be addressed in Closed Session.

With respect to every item of business to be discussed in Closed Session, pursuant to the California Government Code:

CS1. RSG RENTAL UNITS PROPERTY NEGOTIATIONS (Pursuant to Government Code § 54956.8)

PROPERTIES (Port Hueneme, CA): 760 Jane Dr. APN 207‐0‐312‐045; 303 Harbor Breeze Dr. APN 233‐0‐220‐495; 304 Harbor Breeze Dr. APN 233‐0‐220‐445; 322 Harbor Breeze Dr. APN 233‐0‐220‐535; 323 Harbor Breeze Dr. APN 233‐0‐220‐585; 332 Harbor Breeze Dr. APN 233‐0‐220‐635; 775 Ocean Breeze Dr. APN 233‐0‐220‐255; 776 Ocean Breeze Dr. APN 233‐0‐220‐305; 802 Morning Mist Ln. APN 233‐0‐220‐725; 803 Morning Mist Ln. APN 233‐0‐220‐685; 209 S Ventura Rd. # 26 APN 208‐0‐230‐03; 309 E C St. APN 206‐0‐045‐220; 323 E C St. APN 206‐0‐045‐370; 116 W Pleasant Valley Rd. APN 206‐0‐031‐13; 148 W Pleasant Valley Rd. APN 206‐0‐031‐090; 730 Jane Dr. APN 207‐0‐312‐015; 781 Jane Dr. APN 207‐0‐311‐065; 771 Jane Dr. APN 207‐0‐311‐055; 780 Jane Dr. APN 207‐0‐312‐065; 800 Jane Dr. APN 207‐0‐312‐075; 841 Jane Dr., Apt 1‐5 APN 207‐0‐311‐145; 249 East "A' St., Apt 1‐8 APN 206‐0‐051‐310; 245 E Port Hueneme Rd. APN 206‐0‐094‐050;

Page 14 of 363 241 E Port Hueneme Rd. APN 206‐0‐094‐060; 124 W Pleasant Valley Rd. APN 206‐0‐031‐120

AGENCY DESIGNATED REPRESENTATIVES: Rod Butler, City Manager; Charles R. Green, City Attorney; and Steve Kinney, Consultant Kharis Navigating.

NEGOTIATING PARTIES: Multiple parties.

UNDER NEGOTIATION: Negotiate price and terms of payment.

CS2. CONFERENCE WITH LABOR NEGOTIATORS (Pursuant to Government Code Section 54957.6)

AGENCY DESIGNATED REPRESENTATIVES: Linda Catherine Le, Deputy City Manager; Finance Director Ken McDonald; Steven M. Berliner, Special Counsel.

EMPLOYEE ORGANIZATIONS: Service Employees International Union (SEIU) 721 Southern California Public Service Workers.

All Council Members were present. No members of the public were present.

Recessed to Closed Session at 5:01 p.m. Reconvened at 5:51 p.m.

REGULAR MEETING:

Reconvened into open session at 6:30 p.m. Council Member Tom Figg gave the Inspiration after the flag salute. Requested the meeting be adjourned in memory of Roberta Downing. The City Clerk called the roll:

PRESENT: Council Members Tom Figg; Jim Hensley; Jonathan Sharkey; Mayor Pro Tem Will Berg, and Mayor Sylvia Muñoz Schnopp. ABSENT: None.

Staff members present were: Rod Butler, City Manager; Linda Catherine Le, Deputy City Manager; Charles R. Green, City Attorney; Don Villafana, Public Works Director; Tony Stewart, Community Development Director; Ken McDonald, Finance Director; Andrew Salinas, Chief of Police; Director; and Michele Kostenuik, City Clerk.

4. AGENDA:

Mayor Schnopp requested to amend the agenda, move item 10A after the Consent Agenda and move 7B Presentation to the May 21, 2018 Regular Meeting.

Page 15 of 363 Member Sharkey, seconded by Member Hensley, moved to approve the Amended Agenda. Motion carried 5-0.

5. REPORTABLE ACTIONS FROM CLOSED SESSION:

Charles Green, City Attorney, stated there were no reportable actions.

6. OPEN FORUM:

Mayor Schnopp asked if anyone present wished to speak on any matter not on the Agenda. The following persons requested to speak:

1. Mr. Jerry Garon, Safe Port Hueneme Coast Member Opposed to location of proposed hotel project on Hueneme Beach and wanted to clarify facts. 2. Mr. Ken Rifkind, Safe Port Hueneme Coast Member Opposed to location of proposed hotel project on Hueneme Beach and supports Mr. Garon’s comments. Read email from Harvey Champlin on January 4, 2018. 3. Mr. Steve Gama, Port Hueneme Announced Port Hueneme Historical Museum Memorial Day Celebration, Monday, May 28, 8:30 a.m. at City Hall. 4. Mr. Karl McClain, Port Hueneme Opposed to cannabis business at Top Deck bar due to proximity to the Naval Base and an elementary school. 5. Mr. Jeffrey Burns, Congress Candidate Against SB54 and requested the City place the item on a future agenda.

7. PRESENTATIONS:

A. PROCLAMATION RECOGNIZING PEACE OFFICER’S MEMORIAL DAY AND NATIONAL POLICE WEEK 2018 Action: Present proclamation recognizing May 15, 2018 as Peace Officer’s Memorial Day and National Police Week 2018.

Mayor Schnopp read the proclamation and presented it to Chief Salinas.

B. PROCLAMATION RECOGNIZING NATIONAL BEACH SAFETY/RIP CURRENT AWARENESS WEEK Action: Present proclamation acknowledging June 2 through June 9, 2018 as National Beach Safety/Rip Current Awareness Week.

Item 7B was moved to the May 21, 2018 Regular Meeting.

Page 16 of 363 8. CONSENT AGENDA:

A. APPROVAL OF MINUTES Action: It is recommended the City Council approve the Minutes of the April 9, 2018 Special Meeting and the April 16, 2018 Regular Meeting.

B. CASH DISBURSEMENTS RATIFICATION Action: It is recommended the City Council ratify the cash disbursements listing for the period April 7, 2018 through April 27, 2018.

C. TREASURER’S INVESTMENT REPORT – DECEMBER 31, 2017 Action: It is recommended the City Council receive and file the December 31, 2017 Treasurer’s Report as presented.

D. MONTHLY GRANT ACTIVITIES REPORT FROM CALIFORNIA CONSULTING, LLC Action: Receive and file the monthly grant activities report California Consulting.

E. ADOPTION OF A RESOLUTION AUTHORIZING STAFF TO OPERATE THE SENIOR NUTRITION PROGRAM IN COOPERATION WITH THE COUNTY OF VENTURA

Action: It is recommended the City Council adopt the attached resolution authorizing the Deputy City Manager to continue the Senior Nutrition Program operation in cooperation with the County of Ventura.

RESOLUTION NO.4207

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME AUTHORIZING THE DEPUTY CITY MANAGER, LINDA CATHERINE LE, TO CONTRACT WITH THE VENTURA COUNTY AREA ON AGING FOR THE CITY TO CONTINUE DAY-TO-DAY SITE OPERATIONS FOR THE SENIOR NUTRITION PROGRAM

Member Sharkey, seconded by Member Hensley, moved to approve the Consent Agenda. Motion carried 5-0.

10. DEPUTY CITY MANAGER REPORTS/COMMENTS:

A. INSURANCE COVERAGE OPTIONS Action: It is recommended that the City Council:

Page 17 of 363 1. Receive and file a Report of “Review of Insurance Coverage” as conducted by Bickmore.

2. Approval of staff recommendation to continue insurance coverage with California Joint Powers Insurance Authority (“CJPIA”).

Linda Catherine Le, Deputy City Manager gave a brief report. Representative from Bickmore gave a PowerPoint presentation.

Member Sharkey, seconded by Mayor Pro Tem Berg, moved to approve the item as presented. Motion carried 5-0 by the following roll:

AYES: Member Figg, Hensley, Sharkey, Mayor Pro Tem Berg, and Mayor Schnopp. NOES: None. ABSTAINING: None. ABSENT: None.

9. HEARINGS:

Mayor verifies posting of notice by City Clerk- Yes Councilmembers declare any conflict- None Councilmembers declare any ex parte contacts- None Mayor opens public hearing- 7:12 p.m. Staff presentation Public testimony- None Mayor closes public testimony- 7:20 p.m. City Council discussion and possible action

A. FIRST READING OF FIREWORKS SOCIAL HOST LIABILITY ORDINANCE

Action: It is recommended City Council approve the first reading by title only and subsequent adoption of an ordinance amending Section 5142 and 5143 of the Port Hueneme Municipal Code concerning the illegal use of fireworks.

ORDINANCE NO. 739

AN ORDINANCE OF THE CITY OF PORT HUENEME REPEALING SECTIONS 5142 AND 5143 OF PART G OF CHAPTER 2 OF ARTICLE V OF THE PORT HUENEME MUNICIPAL CODE, AND ENACTING NEW SECTIONS 5141,5142 AND 5143 OF PART G OF CHAPTER 2 OF ARTICLE V RELATING TO FIREWORKS.

Page 18 of 363 Chief Salinas gave a PowerPoint presentation. Discussion ensued among Council and staff. Charles Green, City Attorney read title of the ordinance.

Member Hensley, seconded by Mayor Pro Tem Berg, moved to approve the item as presented. Motion carried 5-0.

Mayor verifies posting of notice by City Clerk- Yes Councilmembers declare any conflict- None Councilmembers declare any ex parte contacts- None Mayor opens public hearing- 7:22 p.m. Staff presentation Public testimony- two people spoke Mayor closes public testimony- 8:02 p.m. City Council discussion and possible action

B. PLANNED DEVELOPMENT/CONDITIONAL USE PERMIT NO. PHCU-849 AND DEVELOPMENT AGREEMENT NO. PHDA-850 WHEELHOUSE DISPENSARY, LOCATED AT 521 W. CHANNEL ISLANDS BLVD., SUITES #1-6

Action: It is recommended the City Council: (1) open the public hearing to take testimonial and documentary evidence; (2) close the public hearing and consider the evidence; (3) after considering the evidence, adopt the attached Resolution that conditionally approves Conditional Use Permit Application No. PHCU-849 and determines the project is categorically exempt from CEQA, and introduce the attached Ordinance which approves Development Agreement Application No. PHDA-850 accompanied by title only and waive further reading (with approval to follow at the next regularly scheduled City Council meeting); and (4) take such additional, related, action that may be desirable.

ORDINANCE NO.738

Page 19 of 363 Tony Stewart, Community Development Director gave a PowerPoint presentation. Wheelhouse representative, Zahar Lalji spoke. Discussion ensued among Council and staff.

Mayor Schnopp asked if anyone present wished to speak. The following persons requested to speak:

1. Ms. Francine Castanon, Port Hueneme Chamber of Commerce Spoke in support of the project. 2. Mr. Tim Morland, River Distribution Stated they can sell state licensed tested products if Development Agreement is approved. Spoke in support of the project. 3. Audience Member Spoke in support of the project. 4. Audience Member Spoke in support of the project.

Member Hensley, seconded by Member Sharkey, moved to approve the item as presented. Motion carried 4-1 by the following roll:

AYES: Member Figg, Hensley, Sharkey, and Mayor Pro Tem Berg. NOES: Mayor Schnopp. ABSTAINING: None. ABSENT: None.

11. CITY MANAGER COMMENTS/REPORTS:

A. UPDATE ON STRATEGIC ACTION PLAN PROGRESS Action: It is recommended that the City Council receive and file this update on the progress toward completion of the items contained in the City Council’s Strategic Action Plan.

Rod Butler, City Manager, gave an update on the items of the Strategic Action Plan. He highlighted some major achievements: establishment of the Citizen Advisory Commission which has received several applications; coalition for beach erosion resulted in dredging project expected to occur in late 2018 or early 2019; review of insurance options is complete; establishment of Council protocols; REACH Board expansion, establishment of fundraising campaign and event.

Discussion ensued among Council and staff.

Motion was made by Mayor Schnopp requesting to create a 7-10 year City plan and contract out the service for under $25,000. Motion failed due to lack of a second.

Amended motion to have City Manager review internal resources and funding to create

Page 20 of 363 7-10 year plan.

Mayor Schnopp, seconded by Member Sharkey, moved to approve the amended motion presented. Motion carried 4-1 by the following roll:

AYES: Member Sharkey, Hensley; Mayor Pro Tem Berg; and Mayor Schnopp. NOES: Member Figg. ABSTAINING: None. ABSENT: None.

12. CITY ATTORNEY COMMENTS/REPORTS:

A. RESOLUTION APPROVING COUNCIL POLICIES AND PROCEDURES

Action: It is recommended the City Council adopt the proposed resolution.

RESOLUTION NO.___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME ADOPTING A CITY COUNCIL POLICY AND PROCEDURES MANUAL

Charles Green, City Attorney, gave a report. Discussion ensued among Council and staff.

Member Sharkey, seconded by Mayor Schnopp, moved to approve the item as presented. Motion failed 3-2 by the following roll:

AYES: Member Sharkey; and Mayor Schnopp. NOES: Member Figg, Hensley; and Mayor Pro Tem Berg. ABSTAINING: None. ABSENT: None.

COUNCIL MEMBERS’ REPORTS, COMMENTS, AND REQUESTS FOR FUTURE AGENDA ITEMS

Member Hensley stated the events he attended and requested to have lifeguards start earlier due to hot weather.

Member Sharkey requested the new harbor director speak at one of the Council meetings. Stated he attended RDP-21 Conference in Washington, D.C. at the end of April and highlighted main topics of discussion.

Mayor Pro Tem Berg stated he attended the RDP-21 Conference in Washington, D.C. at

Page 21 of 363 the end of April. Stated he attended the Southern California Association of Governments (SCAG) Annual Conference in Desert Hot Springs.

Mayor Schnopp stated the Sister City Program will be on the upcoming agenda and she will be attending an upcoming Sister City International joint meeting. Stated she attended County of Santa Barbara Board of Supervisors Meeting on May 1 and presented two tree seedlings as representation for the rebuilding of the County and City of Montecito.

CONTINUATION OF OPEN FORUM:

Mayor Schnopp asked if anyone present wished to speak. The following persons requested to speak:

1. Bob Tatum, Freedom 1st Suggested each department create a strategic plan. 2. Jeffrey Burns, Candidate for Congress Suggested creating a five year plan and place SB54 on future agenda.

ADJOURNMENT:

Mayor Schnopp, without objection, adjourned the meeting at 9:03 p.m. in memory of Roberta Downing. Special Meeting to be held May 10, 2018 at 6:00 p.m. and Regular Meeting on May 21, 2018 at 6:00 p.m. in the City Council Chamber.

Respectfully submitted,

______Michele Kostenuik City Clerk APPROVED:

______MAYOR SCHNOPP

Page 22 of 363

CITY OF PORT HUENEME CASH DISBURSEMENTS For the period April 28, 2018 through May 11, 2018 May 21, 2018 Presented are the cash disbursements issued by the Finance Dept. for the period April 28, 2018 through May 11, 2018. Shown are cash disbursements by date of occurrence and type of payment.

Date Type of Payment Attachment Amount April 30, 2018 EFT Payments 11091-11100 A $602,291.76 April 30, 2018 Payroll Distribution B $20,162.86 May 3, 2018 EFT Payment 11084 C $98,344.13 A/P Checks 113704-113773 May 5, 2018 Payroll Distribution D $859.25 May 9, 2018 EFT Payment 11086 E $2,777.87 May 10, 2018 Payroll Distribution F $2,297.08 May 11, 2018 Payroll Distribution G $236,635.24 May 11, 2018 EFT Payments 11102-11110 H $329,156.93 A/P Checks 113774-113823

Total $1,292,525.12

Page 23 of 363 Page 24 of 363 Page 25 of 363 Page 26 of 363 Page 27 of 363 Page 28 of 363 Page 29 of 363 Page 30 of 363 Page 31 of 363 Page 32 of 363 Page 33 of 363 Page 34 of 363 Page 35 of 363 Page 36 of 363 Page 37 of 363 Page 38 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Kenneth McDonald, Finance Director

SUBJECT: COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FISCAL YEAR ENDED JUNE 30, 2017

DATE: May 21, 2018

RECOMMENDATION:

It is recommended that the City Council receive and file CAFR for the Fiscal Year Ended June 30, 2017.

BACKGROUND/ANALYSIS:

The Independent Auditor’s Report on page 6 of the CAFR, indicates that they have given the City an unqualified or “clean” audit opinion and did not have any findings to report. In addition, the foundation to our road to recovery has been established and is shown in the reduction in expenses and increase in revenues from the General Fund budget on page 102. Although the revenue increase was mainly due to some one time revenue items that have offset the prior year adjustments that restated the beginning year balances.

FISCAL IMPACT:

None.

ATTACHMENT:

1.) Comprehensive Annual Financial Report (CAFR) Fiscal Year Ended June 30, 2017

See attachment online or the City Clerk's office 7C Page 39 of 363 Page 40 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Linda Catherine Le, Deputy City Manager

SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING ESTABLISHING A COMPREHENSIVE PAY SCHEDULE FOR ALL EMPLOYEES

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFORNIA, ADOPTING A SALARY RESOLUTION TO ESTABLISH A COMPREHENSIVE PAY SCHEDULE FOR ALL FULL-TIME EMPLOYEES, PART-TIME EMPLOYEES AND ELECTED OFFICIALS IN ACCORDANCE WITH CALPERS GUIDELINES.

FISCAL IMPACT:

There is no fiscal impact related to this action. All pay rates on the attached Comprehensive Pay Schedule are currently in place based on previous Council actions, approving labor contracts with bargaining groups, and the City Manager's employment contract. There are no changes to existing salaries initiated by creation of this Comprehensive Pay Schedule that is addressing CalPERS' compensation reporting requirements.

BACKGROUND/ANALYSIS:

A Comprehensive Pay Schedule ("Schedule") for the City of Port Hueneme is created and presented in accordance with CalPERS regulations intended to ensure consistency when reporting compensation for City employees. The Schedule includes pay rate information for all full-time and part-time employees, as well as for elected officials. The Schedule enhances the disclosure and transparency of public employee compensation by requiring that the pay rates be listed on a single pay schedule meeting CalPERS' requirements. 7D

Page 41 of 363 CalPERS requires that each pay schedule include a position title for every employee position, pay rate for each position, and a time base for each pay rate. Whenever there are future changes to one or more pay rates, whether through the Meet and Confer process, employment contracts, reclassifications, etc., the City is required to update the Schedule and present it to the City Council for review and approval.

The Schedule is required to be immediately accessible and available for public review from the employer. Posting the Schedule on the City of Port Hueneme's website meets this requirement. The Schedule is required to indicate an effective date and date of any revisions and is to be retained by the City and available for public inspection for not less than five years. The date of the most recent similar document is the City of Port Hueneme’s Classification List that was approved by the City Council with the current budget on August 7, 2017 (Vote: 4-1), and made effective July 1, 2017.

Upon adoption of the attached Resolution, the Comprehensive Pay Schedule will be created, which meets CalPERS requirements, and be placed on the City of Port Hueneme's website.

ATTACHMENTS:

1.) Resolution 2.) Comprehensive Pay Schedule

Page 42 of 363 RESOLUTION N0. ______

A RESOLUTON OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME, CALIFONIRA, APPROVING AND ADOPTING A COMPREHENSIVE PAY SCHEDULE FOR ALL FULL TIME EMPLOYEES, PART-TIME EMPLOYEES, AND ELECTED OFFICIALS IN ACCORDANCE WITH CALPERS GUIDELINES

WHEREAS, the City of Port Hueneme ("City"), through negotiations with various employee bargaining groups, has established corresponding Memoranda of Agreement which are in full force and effect, and has similarly established individual contracts with each executive management employee; and

WHEREAS, the California Public Employees' Retirement System ("CalPERS") limits "compensation earnable" for retirement purposes to amounts listed on a pay schedule meeting requirements set forth in section 570.5 of title 2 of the California Code of Regulations, including that government agency employers provide and make available to the public the salary of all full-time, part-time employees and elected officials in a single salary format specified by CalPERS; and

WHEREAS, the City of Port Hueneme has compiled the necessary salary data to create a single salary schedule in compliance with the requirements of CalPERS, attached to the City Council Agenda Report as Attachment 2, dated May 21, 2018; and

NOW, THEREFORE, BE IT RESOLVED, by the City Council of Port Hueneme, California, that the Comprehensive Pay Schedule attached to the City Council Agenda Report as Attachment 2, is approved and adopted.

PASSED, APPROVED, AND ADOPTED on this 21st day of May, 2018 by the City Council of the City of Port Hueneme, State of California.

______Sylvia Munoz-Schnopp, Mayor ATTEST:

______Michelle Kostenuik, City Clerk

Page 43 of 363

APPROVED AS TO FORM

______Charles R. Green, City Attorney

Approved and adopted the 21st day of May 2018. I, the undersigned, hereby certify that the foregoing Resolution Number____ was duly adopted by the Port Hueneme City Council. (Governing Body) by the following vote:

Ayes: ______Nos: ______Absent: ______

______Michele Kostenuik City Clerk

Page 44 of 363 Classification Step Hourly Monthly Annual Accountant (Tier II) Base 28.86 5,003 60,037 Mid 33.19 5,754 69,043 Top 37.52 6,504 78,048 Administrative Services Coord P/T Base 24.64 Mid 28.36 Top 32.09 Administrative Specialist II Base 17.68 3,065 36,774 Mid 20.33 3,524 42,286 Top 22.98 3,983 47,798 Administrative Specialist III Base 18.95 3,285 39,416 Mid 21.79 3,777 45,323 Top 24.63 4,269 51,230 Annuitant (Temporary) Base 13.86 Mid 54.03 Top 94.20 Assistant Head Lifeguard Step 1 19.78 Step 2 20.37 Step 3 20.98 Step 4 21.61 Step 5 22.26 Step 6 22.93 Step 7 23.62 Step 8 24.33 Step 9 25.06 Step 10 25.73 Building Official (Tier II) Base 38.76 6,719 80,629 Mid 44.58 7,727 92,724 Top 50.39 8,735 104,818 City Clerk (Tier II) Base 31.46 5,453 65,441 Mid 36.18 6,270 75,257 Top 40.90 7,089 85,073 City Manager 86.54 15,000 180,000

Clerical Aide Base 13.86 2,402 28,829 Mid 15.94 2,763 33,155 Top 18.01 3,122 37,461 Code Compliance Officer Base 25.98 4,503 54,038 Mid 29.88 5,179 62,150 Top 33.77 5,853 70,242 Comm Dev Prog Manager (Tier I) Base 33.96 5,886 70,637 Mid 39.05 6,769 81,224 Top 44.14 7,651 91,811 Comm Development Director Base 56.74 9,835 118,020 Mid 65.25 11,310 135,723 Top 73.76 12,786 153,426 Community Development Assistant Base 17.68 3,065 36,774 Mid 20.33 3,524 42,286 Top 22.98 3,983 47,798 Community Development Tech Base 18.95 3,285 39,416 Mid 21.79 3,777 45,323 Top 24.63 4,269 51,230 Council Member 751.38

Page 45 of 363 Custodian P/T Base 12.82 Mid 14.74 Top 16.66 Deputy City Manager Base 56.74 9,835 118,020 Mid 65.25 11,310 135,723 Top 73.76 12,786 153,426 Deputy Public Works Director Base 45.12 7,821 93,850 Mid 51.59 8,942 107,307 Top 58.66 10,168 122,013 Electrical/Instrumentation Tech Base 29.18 5,058 60,694 Mid 33.56 5,817 69,805 Top 37.93 6,575 78,894 Facilities Maint Worker II Base 20.23 3,507 42,078 Mid 23.43 4,061 48,734 Top 26.63 4,616 55,390 Facilities Maint Worker, Lead Base 25.98 4,503 54,038 Mid 29.88 5,179 62,150 Top 33.77 5,853 70,242 Finance Director Base 56.74 9,835 118,020 Mid 65.25 11,310 135,723 Top 73.76 12,786 153,426 Fiscal Aide Base 16.40 2,843 34,112 Mid 18.86 3,269 39,229 Top 21.33 3,697 44,366 Fiscal Assistant Base 21.52 3,730 44,762 Mid 24.74 4,288 51,459 Top 27.96 4,846 58,157 Head Lifeguard Step 1 22.11 Step 2 22.77 Step 3 23.46 Step 4 24.16 Step 5 24.88 Step 6 25.63 Step 7 26.40 Step 8 27.19 Step 9 28.01 Step 10 28.74

Housing & Facilities Svcs Asst Base 17.68 3,065 36,774 Mid 20.33 3,524 42,286 Top 22.98 3,983 47,798 Housing Authority Board Member $50.00 per meeting

Housing Maintenance Worker I Base 18.95 3,285 39,416 Mid 21.79 3,777 45,323 Top 24.63 4,269 51,230 Housing Programs Manager (Tier I) Base 37.70 6,535 78,416 Mid 43.36 7,516 90,189 Top 48.99 8,492 101,899 Housing Specialist Base 21.52 3,730 44,762 Mid 24.74 4,288 51,459 Top 27.96 4,846 58,157 Human Resources Analyst Base 30.24 5,242 62,899 Mid 34.78 6,029 72,342 Top 39.32 6,815 81,786

Page 46 of 363 Intern (Temporary) Base 12.82 Mid 14.74 Top 16.66 Information Sys Asst P/T Base 22.89 Mid 26.33 Top 29.77 IS/Technology Manager (Tier I) Base 41.42 7,179 86,154 Mid 47.63 8,256 99,070 Top 53.84 9,332 111,987 Laborer (P/T) Base 12.82 Mid 14.74 Top 16.66 Landscape Maint Worker I Base 15.13 2,623 31,470 Mid 17.40 3,016 36,192 Top 19.67 3,409 40,914 Landscape Maint Worker II Base 18.95 3,285 39,416 Mid 21.79 3,777 45,323 Top 24.63 4,269 51,230 Grounds Maintenance Aide (P/T) Base 16.60 Mid 19.10 Top 21.60 Lifeguard Step 1 13.99 Step 2 14.41 Step 3 14.84 Step 4 15.29 Step 5 15.75 Step 6 16.22 Step 7 16.70 Step 8 17.21 Step 9 17.72 Step 10 18.17 Mechanic I Base 20.23 3,507 42,078 Mid 23.43 4,061 48,734 Top 26.63 4,616 55,390 Mechanic II Base 23.43 4,061 48,734 Mid 26.94 4,670 56,035 Top 30.45 5,278 63,336 Park Ranger P/T Base 18.40 Mid 21.16 Top 23.93 Parking Enforcement Officer Base 20.23 3,507 42,078 Mid 23.43 4,061 48,734 Top 26.63 4,616 55,390 Parking Enforcement Officer P/T Base 18.08 Mid 20.79 Top 23.51 Payroll Services Specialist (Tier I) Base 24.38 4,226 50,710 Mid 28.02 4,857 58,282 Top 31.67 5,489 65,874 PHWA Board Member $50.00 per meeting Police Chief Base 60.71 10,523 126,282 Mid 69.82 12,102 145,224 Top 78.93 13,681 164,166 Police Comm Officer Base 22.44 Mid 25.81 Top 29.16

Page 47 of 363 Police Comm Officer P/T Base 18.08 Mid 20.79 Top 23.51 Police Commander Base 48.84 8,466 101,587 Mid 57.76 10,012 120,141 Top 66.68 11,558 138,694 Police Officer Base 32.83 Mid 37.76 Top 42.69 Police S/S Div Manager (Tier II) Base 38.76 6,719 80,629 Mid 44.58 7,727 92,724 Top 50.39 8,735 104,818 Police Sergeant Base 44.82 Mid 51.55 Top 58.28 Police Support Svcs Technician P/T Base 19.22 Mid 22.09 Top 24.96 Principal Engineer Base 51.58 8,941 107,291 Mid 59.32 10,282 123,385 Top 67.06 11,623 139,478 Property and Evidence Supervisor Base 26.88 Mid 30.92 Top 34.95 Public Works Director Base 60.71 10,523 126,282 Mid 69.82 12,102 145,224 Top 78.93 13,681 164,166 Recreation Attendant (P/T) Base 12.82 Mid 14.74 Top 16.66 Rec & Comm Service Manager Base 33.96 5,886 70,637 Mid 39.05 6,769 81,224 Top 44.14 7,651 91,811 Senior Accountant (Tier I) Base 30.24 5,242 62,899 Mid 34.78 6,029 72,342 Top 39.32 6,815 81,786 Senior Police Officer Base 35.80 Mid 41.17 Top 46.55 Solid Waste Equipment Operator I Base 15.13 2,623 31,470 Mid 17.40 3,016 36,192 Top 19.67 3,409 40,914 Solid Waste Equipment Operator II Base 17.68 3,065 36,774 Mid 20.33 3,524 42,286 Top 22.98 3,983 47,798 Solid Waste Operations Coordinator Base 25.98 4,503 54,038 Mid 29.88 5,179 62,150 Top 33.77 5,853 70,242 Police Comm Officer (Senior) Base 26.88 Mid 30.92 Top 34.95 Police Records Technician (Senior) Base 22.44 Mid 25.81 Top 29.16

Page 48 of 363 Streets Maint Worker I Base 16.40 2,843 34,112 Mid 18.86 3,269 39,229 Top 21.33 3,697 44,366 Streets Maint Worker Lead Base 23.43 4,061 48,734 Mid 26.94 4,670 56,035 Top 30.45 5,278 63,336 Wastewater Maint Worker Lead Base 25.98 4,503 54,038 Mid 29.88 5,179 62,150 Top 33.77 5,853 70,242 Wastewater Maintenance Worker I Base 18.95 3,285 39,416 Mid 21.79 3,777 45,323 Top 24.63 4,269 51,230 Wastewater Maintenance Worker II Base 20.23 3,507 42,078 Mid 23.26 4,032 48,381 Top 26.63 4,616 55,390 Water Utility Operator Lead Base 25.98 4,503 54,038 Mid 29.88 5,179 62,150 Top 33.77 5,853 70,242 Water Resource Inspector I Base 20.23 3,507 42,078 Mid 23.26 4,032 48,381 Top 26.63 4,616 55,390 Water Utility Operator I Base 18.95 3,285 39,416 Mid 21.79 3,777 45,323 Top 24.63 4,269 51,230 Water Utility Operator II Base 20.23 3,507 42,078 Mid 23.26 4,032 48,381 Top 26.63 4,616 55,390

Page 49 of 363 Page 50 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Linda Catherine Le, Deputy City Manager

SUBJECT: APPROVAL FOR THE CITY OF PORT HUENEME TO JOIN SISTER CITIES INTERNATIONAL AND DELEGATION OF THE AUTHORITY TO THE HONORABLE MAYOR SYLVIA MUNOZ SCHNOPP TO SEND A LETTER TO THE MAYOR OF THE CITY OF ENSENADA, BAJA CALIFORNIA, MEXICO PROPOSING TO ENTER A SISTER CITY AGREEMENT BETWEEN THE TWO CITIES

DATE: May 21, 2018

RECOMMENDATIONS:

It is recommended the City Council:

1.) Approve the City of Port Hueneme to join Sister Cities International (“SCI”).

BACKGROUND/ANALYSIS:

Sister Cities International

Sister Cities International (“SCI”) is a nonpartisan 501 (c)(3) nonprofit which serves as the national membership organization for individual sister cities, counties and states across the United States. This network unites tens of thousands of citizen diplomats and volunteers of approximately 500 communities, over 2,100 partnerships in 145 countries on six continents. Sister city relationships offer members the opportunity to form connections between communities that are mutually beneficial and which address issues that are most relevant for partners. Programs vary greatly from basic cultural exchange programs to youth and education; business and trade; and community development. 7E Page 51 of 363

SISTER CITY –THE CITY OF ENSENADA May 21, 2018 Page 2 of 2

Over eighty California cities have Sister City programs. The Port of Hueneme has a sister-port relationship with the Port of Ensenada, City of Ensenada, Baja California, Mexico.

City of Ensenada

The City of Ensenada is a coastal city in Mexico, the third largest in Baja California. Lying 78 miles south of San Diego on the Baja California Peninsula, it is locally referred to as La Cenicienta del Pacífico, "The Cinderella of the Pacific."

The City has emerged as a cruise ship destination, aerospace center, and wine region. The Port of Ensenada is an important commercial, fishing, and tourist port. The City is home to a navy base, army base and Ensenada Airport, a military airfield which doubles as an airport of entry into Mexico.

The further formalizing of the relationship of our two cities will require the City of Port Hueneme to join SCI. Staff is recommending that the City join SCI due to the high level of benefits that the City will receive in exchange for a relatively modest annual membership fee. Membership in SCI is scaled by population. The City of Port Hueneme fee is $430.00 for 2018 (Attachment 1). Membership in SCI will provide the City access to the SCI directory of other members, diplomatic and protocol services, and professional advice and support for the City of Port Hueneme Sister City program.

Upon the Council’s approval to join SCI, staff recommends the Council delegate the authority to the Mayor to send a letter (Attachment 2) to the Mayor of the City of Ensenada to propose entering a formal sister-city agreement with the City of Port Hueneme, California, USA. Upon approval by both cities, a formal resolution will be established at which point staff will be returning to the Council.

FISCAL IMPACT:

Maintaining a new level of diplomatic relationships will have both fiscal and staffing impacts. Staff believes that the staffing impact may be absorbed through the City Manager’s Office. Staff recommends that the $430.00 membership fee will come from the Community Benefit Fund. Staff will bring forward any additional necessary funding requests through the Fiscal Year 2018-19 budget.

ATTACHMENTS:

1.) Sister Cities International 2018 Membership Application 2.) Letter from the Mayor of the City of Port Hueneme to the Mayor of the City of Ensenada, Baja California, Mexico

Page 52 of 363 2018 Membership Application

Annual Dues* (Please check one) Please send your completed application to [email protected] or mail to: th City/County Population Dues Sister Cities International, 915 15 Street NW, 4th Floor, Washington, DC, 20005

' Under 5,000 $185 Community Information CA 21,723 ' 5,000-10,000 $300 City of Port Hueneme ŝƚǇͬŽƵŶƚǇ ^ƚĂƚĞ WŽƉƵůĂƚŝŽŶ^ŝǌĞ ' 10,000-25,000 $430 Does your city currently have a sister city? Yes No ' 25,000-50,000 $595

' 50,000-100,000 $790 City Contact Information ' 100,000-300,000 $1,000 Ms. Mr. Sylvia Munoz-Schnopp ______' 300,000-500,000 Ψϭ͕ϯϰϬ ^ĂůƵĂƚĂƚŝŽŶ &ŝƌƐƚEĂŵĞ >ĂƐƚEĂŵĞ ' 500,000-1,000,000 $1,855 MAYOR (805) 986-6501 dŝƚůĞ ' 1,000,000 and above $2,215 WŚŽŶĞEƵŵďĞƌ ŵĂŝůĚĚƌĞƐƐ

Primary Contact Information Ms.Mr./Ms. Linda Catherine Le Deputy City Manager ______Salutation First Name Last Name Title

City of Port Hueneme 250 North Ventura Road Port Hueneme Organization Address City

CA 93041 (805) 986-6587 [email protected] State Zip code Phone number Email address

Are you a city employee? Yes No /ĨŶŽƚ͕ƉůĞĂƐĞĞŶƚĞƌǇŽƵƌĐŝƚǇ͛ƐĐŽŶƚĂĐƚŝŶĨŽƌŵĂƚŝŽŶŝŶƚŚĞďŽǆ ĂďŽǀĞ͘ Billing information ;ŝĨĚŝīĞƌĞŶƚĨƌŽŵƉƌŝŵĂƌǇĐŽŶƚĂĐƚŝŶĨŽƌŵĂƚŝŽŶͿ

Mr. Kenneth McDonald Finance Director ______Salutation First Name Last Name Title

City of Port Hueneme 250 North Ventura Road, Port Hueneme

Organization Address City

CA 93041 (805) 986-6529 [email protected]

State Zip code Phone number Email address Do you need an invoice? Yes No

Payment Method Check (make payable to Sister Cities International) Visa MasterCard American Express

/ Card No. Expiration Date CC Security Code Cardholder Name

Cardholder Signature

915 15TH STREET NW · 4TH FLOOR · WASHINGTON, DC 20005 · TEL: 202.347.8630 · WWW.SISTERCITIES.ORG Page 53 of 363

2018 Member Benefits

^ŝƐƚĞƌŝƚŝĞƐ/ŶƚĞƌŶĂƚŝŽŶĂůƐƵƉƉŽƌƚƐƉƌŝǀĂƚĞĐŝƚŝǌĞŶƐ͕ůŽĐĂůŽƌŐĂŶŝǌĂƚŝŽŶƐ͕ĂŶĚŵƵŶŝĐŝƉĂůŽĸĐŝĂůƐǁŚŽĐŽŶĚƵĐƚĞǆĐŚĂŶŐĞƐ and activities under the umbrella of the sister cities movement. Every day, ǁĞ strengthen and ŐƌŽǁ the sister cities net- ǁŽƌŬ by providing support to our members through programs, grants, services, and ŶĞƚǁŽƌŬŝŶŐ opportunities.

Member Services Resources and Discounts x Communications: ^ŝƐƚĞƌŝƚŝĞƐ/ŶƚĞƌŶĂƚŝŽŶĂůĐĂŶǁŽƌŬǁŝƚŚ x Visa Consultations: tĞƉĂƌƚŶĞƌǁŝƚŚĂŶƵŵďĞƌŽĨŝŵŵŝŐƌĂƚŝŽŶ you to publicize your program’s success stories, exchanges, ůĂǁǇĞƌƐƚŚƌŽƵŐŚŽƵƚƚŚĞh͘^͘ƚŽƉƌŽǀŝĚĞƉƌŽ-bono consultations ĂŶĚĞǀĞŶƚƐĂƐǁĞůůĂƐŚĞůƉǇŽƵĞĨĨĞĐƚŝǀĞůǇŶĂǀŝŐĂƚĞĐƌŝƐĞƐŽƌ (up to 30 min.) on questions you might have regarding inbound or controversies related to your program. outbound visas. x Connecting with the Network: Sister Cities International’s x Travel Insurance: Get access to discounted travelers insurance greatest resource ŝƐŽƵƌŶĞƚǁŽƌŬ͘tĞĐĂŶ connect you to for individuals or groups through Sister Cities International. the Department of State, foreign embassies in the U.S., and x Medical Services: Sister Cities International ǁŽƌŬƐǁŝƚŚ Passport other key members to ŚĞůƉǇŽƵŐĞƚƚŚĞĂŶƐǁĞƌƐĂŶĚƐƵƉƉŽƌƚ Health to provide meŵďĞƌƐǁŝƚŚĚŝƐĐŽƵŶƚĞĚŝŵŵƵŶŝǌĂtions and you need. other medical services. x Governance and Policy Services: /ŶŽƵƌŶĞƚǁŽƌŬ͕ƚŚĞƌĞŝƐŶŽ x Background Checks:Members of Sister Cities International receive such thing as “one size fits all.” Sister Cities International access to discounted background check services to administer can help you establish an internal structure that suits the international exchanges. needs of your program and takes advantage of your x Toolkits and Templates: Sister Cities International provides community’s resources. ŵĞŵďĞƌƐǁŝƚŚĂŶƵŵďĞƌŽĨƌĞƐŽƵƌĐĞƐƚŽŚĞůƉďƵŝůĚĂŶĚƌƵŶǇŽƵƌ x Cities Seeking Cities: Our Cities Seeking Cities program program. Get access to handy guidelines, templates, ǁĞďŝŶĂƌƐ͕ ƉƌŽǀŝĚĞƐǇŽƵǁŝƚŚĚĞĚŝĐĂƚĞĚƐƚĂīĂƐƐŝƐƚĂŶĐĞĂŶĚƚŚĞ and best practices for exchanges, policies, and other topics ŶĞĐĞƐƐĂƌǇĐŽŶŶĞĐƚŝŽŶƐƚŽŵƵŶŝĐŝƉĂůŽĸĐŝĂůƐ͕ƚǁŝŶŶŝŶŐ relevant to sister city program development. organizations, and the diplomatic community to help you find and establish a sister city.

Other Programs x Annual Awards: dŚĞǁĂƌĚƐŚŝŐŚůŝŐŚƚƐŝƐƚĞƌcity programming excellence and achievement in a number of competitive categories and programmatic ĂƌĞĂƐ͘dŚĞĂǁĂƌĚƐďƌŝŶŐŝŶƚĞƌŶĂƚŝŽŶĂůƌĞĐŽŐŶŝƚŝŽŶƚŽĞĂĐŚĐŽŵŵƵŶŝƚǇ͛ƐĐŽŶƚƌŝďƵƚŝŽŶƐƚŽƚŚĞĐŝƚŝǌĞŶĚŝƉůŽŵĂĐǇ movement. x Young Artists & Authors Showcase: Open to all youth in member cities, tŚĞ^ŚŽǁĐĂƐĞŝƐĂĐŚĂŶĐĞĨŽƌƐƚƵĚĞŶƚƐƚŽƐŚĂƌĞƚŚĞŝƌ ƉĂƐƐŝŽŶĨŽƌǁŽƌůĚƉĞĂĐĞďǇsubmitting ĂƌƚǁŽƌŬ͕ĞƐƐĂǇƐ͕ĂŶĚƉŽĞŵƐŝŶƐƉŝƌĞĚďǇĂŶĂŶŶƵĂůƚŚĞŵĞ͘tŝŶŶĞƌƐƌĞĐĞŝǀĞĐĂƐŚƉƌŝǌĞƐĂŶĚ top entries tour the U.S. x High School Homestay: This exchange program enables member cities to host high school students for a year or semester. We ĂƐƐŝƐƚǁŝƚŚƉƌŽĐĞƐƐŝŶŐĞǆĐŚĂŶŐĞǀŝƐĂƐĨŽƌƚŚĞǇŽƵƚŚĂŶĚŵĂŬĞƐŝƚĂƐŝŵƉůĞĂŶĚƌĞǁĂƌĚŝŶŐĞǆƉĞƌŝĞŶĐĞĨŽƌƐƚƵĚĞŶƚƐĂŶĚŚŽƐƚ families. x Youth Leadership Summit:Foster the next generation of citizen diplomats and future leaders by sending your community youth aged 14 - 18 to our annual Youth Leadership Summit. Through specialized simulations, site visits, speaker sessions, and peer ŝŶƚĞƌĂĐƚŝŽŶƐƚŽĞŵƉŽǁĞƌƚŚĞŵƚŽƚŚŝŶŬŐůŽďĂůůǇĂďŽƵƚĐƌŝƚŝĐĂůŝƐƐƵĞƐ͘ǇŝŶƚĞƌĂĐƚŝŶŐǁŝƚŚŽƚŚĞƌƉĞĞƌƐĨƌŽŵĂƌŽƵŶĚƚŚĞǁŽƌůĚ͕ ƐƚƵĚĞŶƚƐĂƚƚŚĞƐƵŵŵŝƚďĞĐŽŵĞĂŶĞǁŐĞŶĞƌĂƚŝŽŶŽĨǀŽůƵŶƚĞĞƌƐǁŚŽĂƌĞŝŶƐƚƌƵŵĞŶƚĂůŝŶƉƌŽŵŽƚŝŶŐƉĞĂĐĞ͕ŵƵƚƵĂůƌĞƐƉĞĐƚ͕ĂŶĚ understanding among communities locallǇĂŶĚǁŽƌůĚǁŝĚĞ͘

ΎDĞŵďĞƌƐŚŝƉĚƵĞƐƌĂƚĞƐĂƌĞƐƵďũĞĐƚƚŽĂŶĂŶŶƵĂůĐŽƐƚŽĨůŝǀŝŶŐ ĂĚũƵƐƚŵĞŶƚ͘

915 15TH STREET NW · 4TH FLOOR · WASHINGTON, DC 20005 · TEL: 202.347.8630 · WWW.SISTERCITIES.ORG Page 54 of 363 DATE

The Honorable NAME ______Mayor of the City of Ensenada, Baja California, Mexico ADDRESS

Subject: Sister City – City of Port Hueneme, California

Dear Honorable Mayor______,

On behalf of the City of Port Hueneme, California, USA, we are requesting consideration by you and your city of Ensenada, BC, Mexico, to become our Sister City. Our cities have wonderful and historic backgrounds that would complement not only the Sister Cities International program, but with our economic and regional interests represented by a dichotomy of industries, businesses and trade, it will make for a mutually-beneficial and lasting partnership.

It was my sincere hope to seek a partnership with a city in Mexico that has a port. We discovered that the Port of Ensenada has a sister-port relationship with the Port of Hueneme, an internationally-recognized niche port that specializes in bulk- break and automobile imports, located within our city. I am encouraged to expand the relationship by requesting you and the honorable City of Ensenada to join in a Sister City partnership with the City of Port Hueneme.

The physical, cultural, economic and regional interests that are mirrored in your area extend from this port relationship and include the following: • Coastal city with beach assets enjoyed by locals and tourists • Vibrant community with over 40% of residents being of Latino descent • Military base presence to the north and south • International businesses, including Stellar Biotech (farm marine life that only grows in your area and ours) • Agribusiness in surrounding region • Wineries and vineyards located in the extended region (Oxnard – Santa Ynez Valley)

Page 55 of 363 City of Ensenada Sister City – City of Port Hueneme DATE Page 2 of 2

• Cruise ship port (came to Port of Hueneme in past, with consideration for the future) • Local Harbor for recreational watercraft and commercial fishing • Close proximity to a larger city: Los Angeles and International Airport (LAX) • Nice, year-round weather • Explorer Juan Cabrillo discovered this area when he sailed north along the Pacific Coast

In addition, 2018 marks the City of Port Hueneme’s 70th anniversary, so what better way to celebrate than to establish a new relationship for our next 70 years with the City of Ensenada as our Sister City. My council colleagues and I warmly extend an invitation to you and a delegation from Ensenada to visit our city in the near future and get to know us and the community. It would be our immense pleasure to host you and we would welcome your stay.

Should you have any questions, please feel free to contact City Manager Rod Butler at (805) 986-6501 or via electronic mail at [email protected] or Deputy City Manager Linda Catherine Le at (805) 986-6587 or via electronic mail at [email protected]

Sincerely,

Sylvia Munoz Schnopp Mayor, City of Port Hueneme

Page 56 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Michele Kostenuik, City Clerk

SUBJECT: ADOPTION OF RESOLUTIONS IN PREPARATION FOR THE 2018 MUNICIPAL GENERAL ELECTION

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council adopt the attached resolutions in preparation for the 2018 Municipal General Election.

BACKGROUND/ANALYSIS:

The attached resolutions authorize the City to consolidate its municipal election with the statewide Gubernatorial General Election to be held November 6, 2018, and establish rules to govern submission of candidate statements. These resolutions meet the Ventura County Elections Division’s legal and procedural requirements for conducting the City’s municipal election.

The first resolution officially calls and gives notice of the holding of a municipal general election and requests the Ventura County Clerk and Recorder’s office to render specified services relating to conducting the election.

The second resolution adopts regulations for candidates pertaining to candidate statements, costs, deposits, and related items. The Ventura County Elections Division’s estimated cost of printing, handling, and mailing of the candidate statements is $725 per candidate.

Also attached is the Ventura County Elections Division’s calendar for the November 6, 2018 General Election.

FISCAL IMPACT:

There is no fiscal impact at this time. The City’s estimated share of the election expense for two City Council Member seats is approximately $10,000 and is set forth in the FY 2018-2019 budget.

ATTACHMENTS: 1.) Resolutions (2) 7F

Page 57 of 363 2.) ExhibitS A and B 3.) 2018 Election Calendar

Page 58 of 363

RESOLUTION NO. _____

WHEREAS, a Municipal General Election is to be held in the City of Port Hueneme on November 6, 2018, the date of the statewide Gubernatorial General Election; and

WHEREAS, the City of Port Hueneme wishes to have the County Clerk of Ventura render specified services and supplies to the City relating to the conduct of the election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Hueneme that a Municipal General Election is hereby called to be held in the City of Port Hueneme on November 6, 2018, the date of the statewide General Election, for the purpose of electing three (3) Council Members for a full term of four years, as shown on Exhibit “A” attached hereto and made a part hereof.

BE IT FURTHER RESOLVED ballots to be used at the election shall be in the form and content as required by law.

BE IT FURTHER RESOLVED that pursuant to Section 10403 of the Elections Code, the City of Port Hueneme hereby requests consolidation of its November 6, 2018 Municipal General Election with the statewide Gubernatorial General Election; and the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418.

BE IT FURTHER RESOLVED that pursuant to Elections Code Section 10002, the Board of Supervisors is requested to permit the County Clerk to render services and supplies with respect to the conduct of the City of Port Hueneme’s November 6, 2018 Municipal General Election (as shown on Exhibit “B” attached hereto and made a part hereof), that the County Clerk render any

Page 59 of 363 and all other services and supplies as may be necessary to complete this election, and that the City of Port Hueneme pay the reasonable costs for the services and supplies rendered by the County Clerk.

BE IT FURTHER RESOLVED that the City of Port Hueneme authorizes the Board of Supervisors of the County of Ventura to canvass the election returns of the City of Port Hueneme’s November 6, 2018 Municipal General Election. Pursuant to Section 15651 of the Elections Code, in the event of a tie vote, the County election board shall determine the tie by random drawing.

BE IT FURTHER RESOLVED that the City Clerk is hereby directed to file a certified copy of this Resolution with the Ventura County Board of Supervisors and the Ventura County Elections Division.

BE IT FURTHER RESOLVED that the City Clerk shall certify to the passages and adoption of this Resolution into the book of original resolutions.

PASSED, APPROVED, AND ADOPTED this 21st day of May, 2018.

______SYLVIA SCHNOPP MAYOR

ATTEST:

______MICHELE KOSTENUIK CITY CLERK

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

______CHARLES GREEN ROD BUTLER CITY ATTORNEY CITY MANAGER

Page 60 of 363 Approved and adopted the 21st day of May 2018. I, the undersigned, hereby certify that the foregoing Resolution Number____ was duly adopted by the Port Hueneme City Council. (Governing Body) by the following vote:

Ayes: ______Nos: ______Absent: ______

______Michele Kostenuik City Clerk

Page 61 of 363 RESOLUTION NO. _____

WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs thereof.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Hueneme that pursuant to Section 13307 of the Elections Code, each candidate for elective office to be voted for at the Municipal General Election to be held in the City of Port Hueneme on November 6, 2018 may prepare a candidate statement on an appropriate form provided by the City Clerk. The following rules will govern the request, submission and handling of the candidate’s statement:

(a) The maximum number of words permitted in the candidate statement shall be two hundred (200);

(b) A candidate statement must be on the form provided by the City Clerk;

(c) A candidate statement shall not include the party affiliation of the candidate, nor membership or activity in partisan political organizations;

(d) In accordance with Election Code Section 13308, a candidate statement shall be limited to a recitation of the candidate’s own personal background and qualifications, and shall not in any way make reference to other candidates for that office or to another candidate’s qualifications, character, or activities;

(e) A candidate statement shall be filed in the office of the City Clerk when the candidate’s nomination papers are submitted for filing;

(f) The candidate’s pro-rata share of the cost of printing, handling, and mailing of a candidate statement is seven hundred and twenty five dollars ($725). The candidate shall deposit this estimated cost with the City Clerk at the time of submission of the candidate’s statement;

Page 62 of 363 (g) A candidate statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period;

(h) A candidate statement shall remain confidential until the expiration of the filing deadline; and

(i) If a candidate statement is not filed, a waiver form is required to be filed with the nomination papers.

BE IT FURTHER RESOLVED that the City Council determines that the burden of paying for printing, handling, and mailing of the candidate statement is to be borne by the candidate. Based on the estimated total cost of printing, handling, translating, and mailing the candidate statements (pursuant to Elections Code Section 13307), the City Clerk shall require each candidate filing a statement to pay in advance his or her pro rata share as a condition of having his or her statement included in the voter’s pamphlet. Each candidate shall be billed for any cost in excess of the deposit, or shall receive a refund of any unused portion of the deposit. No candidate shall be permitted to include additional materials in the sample ballot package.

BE IT FURTHER RESOLVED that the City Clerk shall certify to the passage and adoption of this Resolution, shall enter the same in the book of original resolutions of said City; and shall make a minute of passage and adoption thereof in the records of the proceedings for the City Council of said City, in the minutes of the meeting at which the same is passed and adopted. The City Clerk shall provide each candidate or candidate’s representative a copy of this Resolution at the time nomination petitions are issued.

PASSED, APPROVED, AND ADOPTED this 21st day of May, 2018.

______SYLVIA SCHNOPP ATTEST: MAYOR

______MICHELE KOSTENUIK CITY CLERK

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

______CHARLES GREEN ROD BUTLER CITY ATTORNEY CITY MANAGER

Page 63 of 363

Ayes: ______Nos: ______Absent: ______

______Michele Kostenuik City Clerk

Page 64 of 363

ELECTION CALENDAR 2018 General Municipal Election

JULY 16 DECLARATION OF CANDIDACY AND NOMINATION PAPERS through During this period, a Declaration of Candidacy and nomination papers for Council AUGUST 10 Members may be obtained from the City Clerk’s Office and filed with the City Clerk’s E – 113-88 Office not later than 5:00 p.m. on the 88th day before the election. (E.C. §§10220, 10227)

JULY 16 NOTE TO CANDIDATES REGARDING CANDIDATE’S STATEMENT OF through QUALIFICATIONS FOR NONPARTISAN OFFICES AUGUST 10 Each candidate for elective office in any local agency, city, county, or district may E – 113-88 prepare a Candidate’s Statement to be printed in the County Voter Information Guide on an appropriate form which will be provided and explained at the time the candidate obtains nomination papers. The Statement may contain no more than 200 words. The Statement in finalized form must be filed at the time nomination papers are filed. It may be withdrawn, but not changed during the period for filing nomination papers, and until 5:00 p.m. on the next working day after the close of nomination period for that office. (E.C. §13307)

Such Statements will not be available for public inspection until after the close of the filing period. (E.C. §13311)

JULY 16 STATEMENT OF ECONOMIC INTERESTS through All candidates seeking offices designated by G.C. §87200 must file a statement AUGUST 10 disclosing his/her investments and interests in real property and any income E – 113-88 received during the immediately preceding 12 months at the time the Declaration of Candidacy is filed. Such statement is not required if the candidate has filed, within 60 days prior to the filing of his/her Declaration of Candidacy, a statement for the same jurisdiction. (G.C. §§87200, 87201, 87500)

AUGUST 8 LATE CONTRIBUTIONS REPORT AND LATE INDEPENDENT EXPENDITURE through REPORT NOVEMBER 6 Between these dates each candidate or committee that makes or receives a late E – 90- contribution (as defined in G.C. §82036) or a late independent expenditure (as ELECTION DAY defined in G.C. §82036.5) must report the late contribution or late independent expenditure within 24 hours. (G.C. §§84203, 84204)

AUGUST 10 NOMINATION DOCUMENTS (DEADLINE) 5:00 P.M. Last day to file all nomination papers with the City Clerk’s Office for filing or E – 88 examination. (E.C. §10224)

CANDIDATE WITHDRAWAL No candidate whose Declaration of Candidacy or nomination petition has been filed may withdraw after this date. (E.C. §10510)

Page 65 of 363

August 11 EXTENSION OF NOMINATION PERIOD IF INCUMBENT DOES NOT FILE through If nomination documents for an incumbent officer of a county are not delivered by 5:00 August 15 p.m. on August 10, 2018 any person other than the person who was the incumbent E – 87-83 on August 10, 2018 shall have until 5:00 p.m. on Wednesday, August 15, 2018 to file nomination documents for the elective office. This section is not applicable where there is no incumbent eligible to be elected. (Elections Code §10225)

August 11 PUBLIC REVIEW FOR CANDIDATE STATEMENTS OF QUALIFICATIONS AND through BALLOT DESIGNATIONS August 20 During this period, candidate statements of qualifications and ballot designations E – 87-78 will be available for public examination. These statements and ballot designations will be available at the City Clerk’s office. (Elections Code §13313)

AUGUST 13 Last day to withdraw Candidate’s Statement by candidates that are subject to 5:00 P.M. August 10, 2018 close of filing. (E.C. §13307) E – 85

AUGUST 16 RANDOM ALPHA DRAWING 5:00 P.M. Secretary of State draws random alphabet to determine order of candidates who E – 82 will appear on the ballot. (E.C. §§13111, 13112 (b), 13114)

AUGUST 16 CANDIDATE STATEMENT WITHDRAWAL 5:00 P.M. Last day to withdraw candidate statement by candidates that are subject to E – 82 extended August 15, 2018 close of filing. (E.C. §13307)

AUGUST 16 PUBLIC REVIEW FOR CANDIDATES' STATEMENTS OF QUALIFICATIONS through AND BALLOT DESIGNATIONS IF NOMINATION PERIOD HAS BEEN AUGUST 25 EXTENDED (E – 82-73) Public review period for candidate statements and ballot designations filed during the extended filing period. (G.C. §13313)

SEPTEMBER 10 STATEMENT OF WRITE-IN CANDIDACY AND NOMINATION PAPERS through During this period, all write-in candidates must file their statement of write-in OCTOBER 23 candidacy and nomination papers with the Office of the City Clerk. (E.C. §8601) E – 57-14

SEPTEMBER 27 1st PRE-ELECTION CAMPAIGN STATEMENT (Date fixed by The last day to file a campaign statement for candidates and committees for the law) period January 1 through September 22, 2018. (G.C. §§84200.5, 84200.8 (a)) E – 40

SEPTEMBER 27 COUNTY MAILS VOTER INFORMATION GUIDES through Between these dates, the county elections official shall mail a polling place notice OCTOBER 16 and an appropriate County Voter Information Guide to each registered voter. The E – 40-21 polling place notice shall state whether the polling place is accessible to the physically handicapped. (E.C. §§13300,13303,13304)

Page 66 of 363

OCTOBER 8 VOTE BY MAIL APPLICATIONS through Between these dates, any registered voter may apply to the county elections official OCTOBER 30 for a Vote By Mail ballot. Applications received before October 8, 2018, shall be held E – 29-7 and processed during this application period. (E.C. §§3001, 3003)

A request for a Vote By Mail ballot after the period for requesting by mail must be done in a written statement, signed under penalty of perjury, and may authorize a representative to deliver said ballot to voter. (E.C. §3021)

OCTOBER 21 24-HOUR STATEMENT OF ORGANIZATION FILING REQUIREMENT through Between these dates, a committee which qualified as defined by G.C. §82013 (a) in NOVEMBER 5 connection with this election shall file by guaranteed overnight delivery, within 24 E – 16-1 hours, a Statement of Organization. (G.C. §84101)

OCTOBER 22 LAST DAY TO REGISTER TO VOTE E – 15 Last day to register or re-register for change of residence to be eligible to vote at the Gubernatorial General Election. (E.C. §§2102, 2119)

OCTOBER 23 WRITE-IN CANDIDATE DECLARATION DEADLINE E – 14 Every person who desires to have his/her name as written on the ballots counted for a particular office must file a declaration stating he/she is a write-in candidate for the particular office and submit a sponsor’s certificate as required per E.C. §8062 for that office with the City Clerk’s Office not later than the 14th day prior to the election. (E.C. §§8600, 15341)

OCTOBER 25 2nd PRE-ELECTION CAMPAIGN STATEMENT E – 12 The last day to file a campaign statement for candidates and committees for the period September 23 through October 20, 2018. (G.C. §§84200.5, 84200.7(a))

OCTOBER 30 VOTE BY MAIL BALLOTS – DEADLINE TO MAIL E – 7 Last day to request a Vote By Mail ballot by mail. (E.C. 3001)

OCTOBER 31 VOTE BY MAIL BALLOTS - LATE CONDITIONS through Between these dates, any voter may apply in writing or in person for a Vote By Mail NOVEMBER 6 ballot if he or she will be absent or unable to go to the polls on Election Day. The E – 6- voter may designate any authorized representative to obtain and return the Vote By ELECTION DAY Mail ballot. (E.C. §3021)

NOVEMBER 6 VOTE BY MAIL BALLOTS RETURNED IN PERSON Election Day The last day county elections officials may receive Vote By Mail ballots in person. Vote By Mail ballots must be received by 8:00 p.m. at any polling place in the county or at the Ventura County Elections Division. (E.C. §§3017, 3020)

NOVEMBER 6 GUBERNATORIAL GENERAL ELECTION Election Day Polls open 7:00 a.m. to 8:00 p.m. (E.C. §14212)

Page 67 of 363

Semi-official canvass commences upon the first returns from the precincts and continues until completed. (E.C. §§10262, 15150,15151)

NOVEMBER 8 OFFICIAL CANVASS E + 2 The last day for the county elections official to begin the official canvass of the precinct returns. (E.C. §§10263, 15301)

NOVEMBER 9 VOTE BY MAIL BALLOTS RETURNED BY MAIL E + 3 Last day County Elections Official may receive Vote By Mail ballots by mail. Ballots must be postmarked on or before the date of the election. Vote By Mail ballots must be received by 5:00 p.m. at the Ventura County Elections Division. (E.C. § 3020)

DECEMBER 6 OFFICIAL CANVASS - END E + 30 No later than this date, the county elections official must complete the canvass, certify its results, and submit it to the Board of Supervisors. (E.C.§ 15372)

JANUARY 31 SEMI-ANNUAL CAMPAIGN STATEMENT (Date fixed by The last day to file semi-annual campaign statements, if required, by candidates law) and committees for the day after the closing date of the last statement or July 1, 2018 through December 31, 2018. (G.C. §84200)

Page 68 of 363 COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Tony Stewart, AICP, Community Development Director

SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE APPROVING DEVELOPMENT AGREEMENT NO. PHDA-850 WHEELHOUSE DISPENSARY, LOCATED AT 521 W. CHANNEL ISLANDS BLVD., SUITES #1-6

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council move to waive further reading of the subject Ordinance, direct reading by title only and approve the Ordinance as presented.

BACKGROUND/ ANALYSIS:

The applicant, Zahur Lalji (“Applicant”), is requesting approval to operate a medicinal and recreational cannabis dispensary known as "Wheelhouse". The applicant is proposing to lease suites #1-6 on the ground floor of the building located at 521 W. Channel Islands Boulevard for the purpose of operating a 3,283-square foot cannabis dispensary with another 898 square feet of administrative space (4,181 square feet total).

At the City Council meeting of May 7, 2018, the City Council approved a resolution approving Conditional Use Permit No. PHCU-849, thus approving the establishment and operation of the dispensary operations requested by the applicant. Also at this meeting, the City Council waived further reading and read by title only an Ordinance related to the Development Agreement associated with the subject project, thereby introducing the Ordinance as required by state law. The ordinance is now being returned to the City Council agenda for second reading and approval, thus approving Development Agreement No. PHDA-850 between the City and Wheelhouse. 7G Page 69 of 363 Government Code sections 65864 et seq. provides that the legislative body of a city may enter into a development agreement for the development of real property or otherwise deal in a cognizable property interest in owned, leased or rented property in order to vest certain rights in the developer and to meet certain public purposes of the local government. Pursuant to Government Code section 65865, the City adopted Resolution No. 4178 ('the "Implementing Resolution") establishing procedures and requirements for the approval of development agreements. The applicant has applied for Development Agreement No. PHDA-850 pursuant to these regulations.

The City currently does not have a tax structure for cannabis-related businesses. However, a component of the approval of the Cannabis Ordinance and Implementing Resolution was to provide the City a source of additional revenue generated by medicinal cannabis-related businesses approved to operate in the City. Therefore, a development agreement was determined to be a mechanism to ensure each business agreed to providing a certain amount of revenue for the City, in addition to providing other assurances to be performed by the applicant. These additional assurances include abiding by all conditions of approval of the related Certificate of Approval and Conditional Use Permit approved for each business, completing and opening the business within a certain date, indemnifying the City in the case of a lawsuit, etc. In exchange for providing these assurances for the City, the development agreement in turn, also provides the applicant certain assurances from the City, such as existing rules in effect at the time of development agreement approval will remain in effect for the term of the agreement.

Development Agreement No. PHDA-850 specifically requires the applicant to agree to the following:

• Pay a contractual payment of five percent (5%) of the business' annual gross revenues on a quarterly basis; • Maintain all books and records accurately and pay for up to two audits of the books per year; and • Obtain a Certificate of Occupancy within one year of the Effective Date of PHDA-850.

In exchange for agreeing to these provisions, the City agrees that the development rights in place at the time PHDA-850 is approved will be vested, with the exception of non- conflicting laws and regulations, such as: taxes, assessments, fees and charges; building, electrical, mechanical, fire and similar codes; laws, including zoning code provisions which regulate the manner in which business activities may be conducted or that prohibit any particular type of business activity on a city-wide basis; and procedural rules of general city-wide application.

Development Agreement No. PHDA-850 also includes remedies should the applicant default. A default would occur if the amount of the Contractual Payment dropped below 50 percent of the three-year average of the Contractual Payment, if any condition of CUP

Page 70 of 363 No. PHCU-849 was violated, or if there was a continuing or repetitive breach of the City's ordinances. As a result of a default, the City could terminate the Development Agreement, modify it accordingly, or exercise a similar remedy.

FISCAL IMPACT:

The applicant submitted a three-year business pro-forma. Table 1, below, indicates the gross revenues expected to be generated by the project at the ends of years 1, 2 and 3, respectively. Table 1

Year 1 Year 2 Year 3 Gross Revenues $6,186,140 $8,135,624 $8,634,855

After negotiating the amount of revenue the City would receive annually from the proposed business, staff and the applicant agreed that five percent (5%) of the gross revenue is to be paid to the City annually, per the terms of the attached Development Agreement (Attachment 1). Table 2, below, summarizes the project revenue to be paid annually to the City for the first three years the business is in operation, based on the applicant’s revenue projections.

Table 2

Year 1 Year 2 Year 3 Revenue paid to City $309,307 $406,781 $431,743

ATTACHMENTS:

1.) Ordinance 2.) Development Agreement

Page 71 of 363 ORDINANCE NO. _____

THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:

A. On June 5, 2017, the City Council approved Ordinance No. 727 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Medicinal Cannabis Activity";

B. The Ordinance establishes the general requirements for obtaining approval for operating a commercial cannabis activity within the City of Port Hueneme and allowing cultivation for personal medicinal use;

C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City.

D. On December 18, 2017, the City Council subsequently approved Ordinance No. 734 (hereinafter, the “Ordinance”), which amends the text contained in Ordinance No. 727 and Article III, Chapter 12 of the Port Hueneme Municipal Code, to establish provisions for obtaining approval to establish and operate a recreational or adult cannabis business within the City of Port Hueneme, in addition to the provisions contained in Ordinance No. 727.

E. On June 19, 2017, the City Council adopted a resolution, Resolution 4178, which established the procedures and requirements for the consideration of development agreements.

F. Westside Professional Management, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 734 and is thereby authorized, subject to completion of the City’s requirements, to operate a medical and recreational marijuana dispensary with delivery services within the City.

G. The Applicant and the City have agreed to enter into that certain Development Agreement dated May 7, 2018, entitled “Development Agreement [Westside Professional Management, LLC, dba Wheelhouse]" (the “Development Agreement”).

SECTION 1: The City Council finds and determines as follows:

Page 72 of 363 Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.

B. The Development Agreement is in a form authorized by Resolution 4178, and drafted, entered into and presented to the City Council in accordance with all requirements of said resolutions and of Ordinances 727 and 734.

C. The Development Agreement is:

1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;

2. Compatible with the uses and regulations for the land-use area in which the Business is located;

3. In conformity with public convenience, general welfare and good land-use practice;

4. Not detrimental to the health, safety and general welfare; and

5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.

D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.

SECTION 2: This ordinance is adopted pursuant to the authority granted by the California Constitution and State Law and the Charter of the City of Port Hueneme. The City Manager is authorized to administer this Ordinance and to promulgate such administrative policies and procedures that may be required to implement this Ordinance.

SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.

Ayes: Noes: Abstain: Absent:

______

Page 73 of 363 Sylvia Munoz Schnopp, Mayor

Attested:

______Michele Kostenuik, City Clerk

Approved as to form:

______Charles R. Green, City Attorney

PASSED AND ADOPTED this ______day of ______, 2018.

______Sylvia Munoz-Schnopp, Mayor ATTEST:

______Michelle Kostenuik, City Clerk

APPROVED AS TO FORM

______Charles R. Green, City Attorney

Page 74 of 363 Page 75 of 363 Page 76 of 363 Page 77 of 363 Page 78 of 363 Page 79 of 363 Page 80 of 363 Page 81 of 363 Page 82 of 363 Page 83 of 363 Page 84 of 363 Page 85 of 363 Page 86 of 363 Page 87 of 363 Page 88 of 363 Page 89 of 363 Page 90 of 363 Page 91 of 363 Page 92 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Andrew Salinas, Chief of Police

SUBJECT: SECOND READING AND ADOPTION OF FIREWORKS SOCIAL HOST ORDINANCE

DATE: May 21, 2018

RECOMMENDATION:

It is recommended City Council adopt an ordinance repealing Sections 5142 and 5143 of Part G of Chapter 2 of Article V of the City of Port Hueneme Municipal Code, and enact new Sections 5141, 5142, and 5143 of Part G of Chapter 2 of Article V, establishing host liability for fireworks violations.

BACKGROUND/ANALYSIS:

This agenda item is for the adoption of a new ordinance establishing host liability for fireworks violations that was introduced by the City Council on May 7, 2018. During that meeting, Council approved the introduction and first reading by title only of the ordinance.

FISCAL IMPACT:

None.

ATTACHMENT:

1.) Fireworks Ordinance 5141, 5142, 5143 7H Page 93 of 363 ORDINANCE NO.____ AN ORDINANCE OF THE CITY OF PORT HUENEME REPEALING SECTIONS 5142 AND 5143 OF PART G OF CHAPTER 2 OF ARTICLE V OF THE PORT HUENEME MUNICIPAL CODE, AND ENACTING NEW SECTIONS 5141, 5142 AND 5143 OF PART G OF CHAPTER 2 OF ARTICLE V RELATING TO FIREWORKS.

WHEREAS, Part G of Chapter 2 of Article 5 of the Port Hueneme Municipal Code consists of Section 5142, setting forth the definitions of “Dangerous Fireworks” and “Fireworks,” and Section 5143, which bans the sale, offer to sell and possession of all fireworks within the City; and WHEREAS, the penalties for violation of Section 5143 fall under the general penalty section of the Municipal Code, Section 1102, which applies to violations of any section of the Municipal Code which does not provide separate penalties for violation; and WHEREAS, the Police Department has experienced very high call volume in the days surrounding and including July 4th of each year due to the illegal use of fireworks, but is frequently unable to address violations of the existing ordinance which require that the responding officer observe the violation, due to the tendency of violators to leave the scene before police officers arrive; and WHEREAS, the annual requirement to respond to such calls places a heavy financial and personnel burden on the Police Department with insufficient effect on the underlying cause of said calls, diverting officers from other needs of the residents of the City and expending portions of the Police Department’s budget for inadequate results; and WHEREAS, other cities in California have achieved much greater success in enforcing their bans against sale, use or possession of fireworks through an ordinance generally known as a “social host” ordinance, which allows responding officers to cite homeowners or tenants when police officers observe evidence of the use of illegal fireworks on the homeowner’s or tenant’s property; and WHEREAS, the City desires to adopt a social host ordinance pertaining to fireworks in order to make enforcing the City’s ban on selling, offering to sell or possessing fireworks more effective, more efficient and less of a drain on the human and financial resources of the Police Department; and WHEREAS, the City desires to adopt a new section of Part G which provides for a more stringent penalty for the violation of the City’s ban against fireworks.

Page 94 of 363 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT HUENEME DOES ORDAIN AS FOLLOWS:

Section 1. Sections 5142 and 5143 of Part G or Chapter 2 of Article V of the Port Hueneme Municipal Code are hereby deleted in their entirety.

Section 2. The following Sections 5141, 5142 and 5143 are hereby approved and adopted and added to Part G of Chapter 2 of Article V of the Port Hueneme Municipal Code: 5141 – Definitions The following words and phrases as used in this Part shall be defined as follows: (a) "Dangerous Fireworks" shall be defined as set forth in Section 12503 of the Health and Safety Code of the State. (b) "Fireworks" shall be defined as set forth in Section 12502 of the said Health and Safety Code of the State.

5142 – Fireworks prohibited (a) Except as authorized by the fire chief in accordance with the currently adopted California Fire Code, no person shall sell, offer to sell, use or have in his or her possession within the city any fireworks or dangerous fireworks. (b) Except as authorized by the fire chief in accordance with the currently adopted California Fire Code, no property owner or tenant shall allow or permit the sale, offer to sell, use or possession of fireworks on their property when the property owner or tenant knows or should know of the sale, offer to sell, use or possession of fireworks at the property. 5143 – Penalties • $250 for the first violation, if the involved fireworks are classified as “safe and sane.” Safe and sane fireworks are defined by California Health and Safety Code section 12529 as any fireworks that have not been classified as "dangerous" or "exempt.” These fireworks typically comply with California's fireworks laws, unless prohibited by local ordinances. • $500 for the second violation within twelve (12) months of the first violation. • $1,000 for each subsequent violation within twelve (12) months of the first violation.

Page 95 of 363 • $1,000 per offense related to “dangerous fireworks,” as defined by Health & Safety Code Section 12505. In general, dangerous fireworks are those that “explode, skip, fly, travel, or dart.”

Section 3. The City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.

Section 4. All the provisions of the Port Hueneme Municipal Code as heretofore adopted that are in conflict with the provisions of this Ordinance are hereby repealed.

Section 5. This Ordinance shall take effect thirty (30) days after its adoption by the City Council.

Section 6. The City Clerk shall within fifteen (15) days after passage of this Ordinance, cause it to be posted in at least three (3) designated public places; shall certify to the adoption and posting of this Ordinance; and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of this City.

Section 7. This ordinance was approved and adopted at a meeting of the Port Hueneme City Council held on May 21st, 2018, by the following vote:

Ayes: Noes: Abstain: Absent:

______Sylvia Munoz Schnopp, Mayor

Page 96 of 363 Attested:

______Michele Kostenuik, City Clerk

Approved as to form:

______Charles R. Green, City Attorney

Page 97 of 363 Page 98 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Tony Stewart, AICP, Community Development Director

SUBJECT: CONSIDERATION OF MAJOR MODIFICATION TO PLANNED DEVELOPMENT/CONDITIONAL USE PERMIT NO. PHCU-838 AND DEVELOPMENT AGREEMENT NO. PHDA-839 DBO INVESTMENTS PH, LLC. MEDICAL AND RECREATIONAL CANNABIS DISPENSARY WITH DELIVERY SERVICES, LOCATED AT 2675 N. VENTURA ROAD, SUITES #106-108

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council: (1) open the public hearing to take testimonial and documentary evidence; (2) close the public hearing and consider the evidence; (3) after considering the evidence, adopt the attached Resolution that conditionally approves Conditional Use Permit Application No. PHCU-838 Major Modification #1 and determines the project is categorically exempt from CEQA; (4) introduce the attached Ordinance which approves Development Agreement Application No. PHDA-839 Major Modification #1 accompanied by title only and waive further reading (with approval to follow at the next regularly scheduled City Council meeting); and (5) take such additional, related, action that may be desirable.

BACKGROUND/ ANALYSIS:

On April 2, 2018, the City Council conditionally approved Conditional Use Permit No. PHCU-838 and introduced for first reading the ordinance approving Development Agreement No. PHDA-839 (and adopted said ordinance on April 16, 2018), approving an application by applicant, Kintu Patel (“Applicant”) to operate a medicinal and adult or recreational cannabis dispensary and delivery business, known as DBO Investments PH, LLC, or "DBO". The applicant proposed to lease two side-by-side suites on the first floor of the office building located at 2675 N. Ventura Road and combine the suites into a single, approximately 1,050-square foot dispensary, which is the focus of this application . 8A Page 99 of 363 At this time, the applicant is requesting to increase the subject dispensary by approximately 600 square feet, by incorporating the adjacent unit, suite #108. Due to the nature of a cannabis-related business, the project is being brought back to the City Council for action as a Major Modification.

The subject suite is currently occupied by a paramedic office, which will be relocated to an upstairs unit in the same building. Other than modifying the floor plan of the recently approved dispensary to incorporate the additional square footage, the applicant is not proposing any other changes to the site or subject building, nor to the previously approved business operations or Certificate of Approval application package (security and safety plans, business acumen, community benefits, financials, etc.). The proposed project exhibits (site plan, floor plan, etc.) are provided as Attachment 2. The previously approved City Council staff report packet is provided as Attachment 6.

California Environmental Quality Act (CEQA)

With regard to environmental review, staff recommends the Council find the project exempt from CEQA. This exclusion is set forth in CEQA Guidelines (14 California Code of regulations §§ 15000, et seq.) § 15301, which states: “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency‘s determination.” As discussed above, the applicant is proposing to occupy a portion of the first floor of an existing commercial building with a retail use. No modifications to the site are proposed. Therefore, the project will not have an impact on the environment and is thus, exempt from CEQA.

With regard to the public hearing, required notice was mailed to all property owners within 300 feet of the project boundaries.

FISCAL IMPACT:

The applicant submitted a three-year business pro-forma. Table 1, below, indicates the gross revenues expected to be generated by the project at the ends of years 1, 2 and 3, respectively.

Table 1

Year 1 Year 2 Year 3 Gross Revenues $2,553,000 $4,356,000 $4,356,000

Page 100 of 363 Development Agreement (Attachment 1). Table 2, below, summarizes the project revenue to be paid annually to the City for the first three years the business is in operation, based on the applicant’s revenue projections.

Table 2

Year 1 Year 2 Year 3 Revenue paid to City $127,650 $217,800 $217,800

ATTACHMENTS:

1.) Ordinance Approving PHDA-839, Major Modification #1 2.) Resolution Approving PHCU-838, Major Modification #1, with Conditions 3.) Attachment 1 - Amended Development Agreement 4.) Attachment 2 - Project Exhibits (Site Plan, Floor Plan, Photos, etc.) 5.) Attachment 3 - Public Hearing Notice 6.) Attachment 4 - CEQA Notice of Exemption 7.) Attachment 5 - Copy of Revised Certificate of Approval 8.) Attachment 6 - April 2, 2018 City Council Staff Report Packet

Page 101 of 363 ORDINANCE NO. _____

THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:

A. On June 5, 2017, the City Council approved Ordinance No. 727 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Medicinal Cannabis Activity";

C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City.

E. On June 19, 2017, the City Council adopted a resolution, Resolution 4178, which established the procedures and requirements for the consideration of development agreements.

F. DBO Investments PH, LLC (hereinafter, the “Applicant”) is an approved applicant under Ordinance 734 and is thereby authorized, subject to completion of the City’s requirements, to operate a medical and recreational marijuana dispensary with delivery services within the City.

G. The Applicant and the City had agreed to enter into that certain Development Agreement dated April 2, 2018, entitled “Development Agreement [DBO Investments PH, LLC]" (the “Development Agreement”).

H. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated May 21, 2018, entitled “Amended Development Agreement [DBO Investments PH, LLC]" (the “Amended Development Agreement”).

Page 102 of 363 SECTION 1: The City Council finds and determines as follows:

A. The Applicant has been approved through the City’s required procedures as an operator of a medical and recreational marijuana dispensary with delivery services (the “Business”) located at 2675 N. Ventura Road, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.

C. The Development Agreement is:

1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;

2. Compatible with the uses and regulations for the land-use area in which the Business is located;

3. In conformity with public convenience, general welfare and good land-use practice;

4. Not detrimental to the health, safety and general welfare; and

5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.

D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.

Page 103 of 363 SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.

PASSED AND ADOPTED this ______day of ______, 2018.

______Sylvia Munoz-Schnopp, Mayor ATTEST:

______Michelle Kostenuik, City Clerk

APPROVED AS TO FORM

______Charles R. Green, City Attorney

Page 104 of 363 RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME GRANTING APPROVAL OF CONDITIONAL USE PERMIT NO. PHCU-838, MAJOR MODIFICATION #1 (DBO INVESTMENTS PH, LLC MEDICINAL AND RECREATIONAL CANNABIS DISPENSARY WITH DELIVERY)

THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1: The City Council finds and declares that:

A. A public hearing was held as required by law to consider an application filed by Mr. Kintu Patel (“Applicant” or “Permittee”) for a Conditional Use Permit to allow the operation of a medicinal and recreational cannabis dispensary with delivery service, known as “DBO Investments PH, LLC”, with said premises being located at 2675 N. Ventura Road, Suites #106-108, Port Hueneme, California, Ventura County Assessor’s Parcel No. 189-0-220- 235 (“Project”);

B. The applicant has control of the subject site via a 10-year lease;

C. The premises is not located within an area wherein the California Coastal Commission retains appeals jurisdiction;

D. Pursuant to Port Hueneme Municipal Code, Article III, Chapter 12 (as per Ordinance No. 727 and No. 734, the City's "Cannabis Ordinances") and pursuant to the related Resolution No. 4178 (the "Implementing Resolution"), a Conditional Use Permit shall be issued prior to the establishment of any cannabis-related business, including dispensaries;

E. Pursuant to the Cannabis Ordinance and Implementing Resolution, a Certificate of Approval must be obtained by the applicant for a cannabis- related business prior to action being taken on a Conditional Use Permit for said type of medicinal cannabis-related business;

F. The applicant successfully obtained from the City Manager a Certificate of Approval on January 19, 2018 for the subject DBO Investments PH, LLC medicinal and recreational cannabis dispensary with delivery services.

G. Pursuant to the Cannabis Ordinances and Implementing Resolution, a Development Agreement must be approved by the City Council in conjunction with a Conditional Use Permit prior to the operation of any type of cannabis-related business, and Applicant has applied for and negotiated said Development Agreement, which is being considered along with the Conditional Use Permit for the Project;

Page 105 of 363

H. On May 21, 2018, Public testimony was solicited and considered by the City Council prior to its action on this matter;

I. The City Council considered the effects of this Project on the public safety, health, sanitation, and welfare before rendering a decision;

J. The proposed Project represents a discretionary action subject to the environmental review requirements of the California Environmental Quality Act (CEQA) of 1970, as amended (Public Resources Code Section 21000 et. seq.), and by operation of Section 15381 of the California Administrative Code, the City Council of the City of Port Hueneme is deemed "Lead Agency" for the purposes of CEQA; and

K. City staff recommended conditional approval of said Project.

SECTION 2: Under the provisions of PHMC Sections 3980 et. seq., the City Council further finds and declares that:

A. That establishments for the sale of cannabis products (dispensaries) may be permitted in the City's Commercial (C-1) zone subject to issuance of a Conditional Use Permit (Development Permit), provided, however, the Applicant demonstrates that the use proposed will not be injurious or detrimental to the public health, safety or welfare, or to property in the vicinity or zone in which the use will be situated.

B. That the conditions of approval specified in paragraph "G" below are reasonably related to the use of the premises for which this Conditional Use Permit is to be issued and that potentially injurious or detrimental effects will be adequately mitigated by approval of said conditions that address hours of operation, control of odors, security, loitering, removal of graffiti, etc.

C. That the proposed Project, with the conditions of approval specified below, is consistent with and furthers the objectives and policies of the Port Hueneme General Plan, Local Coastal Program and Zoning Ordinance; specifically, the proposed cannabis dispensary furthers Policy 3.2 of the City's General Plan Economic Development Element, which calls for the City to pursue economic development activities, in that cannabis dispensaries have the potential for generating jobs, attracting visitors to the City and generating additional revenues for the City.

D. That prior to rendering a decision on any aspect of the Permit Application, the City Council reviewed and duly considered the following:

Page 106 of 363 1. All testimony, both written and oral, received in conjunction with that certain public hearing conducted on May 21, 2018, which testimony, by this reference, is incorporated herein.

2. That certain written staff report submitted by the Community Development Department and exhibits thereto dated May 21, 2018, which report, by this reference, is incorporated herein.

3. Project exhibits accompanying the staff report, which information, by this reference, is incorporated herein.

E. That on the basis of the evidence hereinafter listed, all administrative procedures and public participation requirements prescribed in Title 7, Divisions 1 and 2, of the Government Code of the State of California, and Article X of the Municipal Code of the City of Port Hueneme, as such procedures and requirements pertain to processing applications for the proposed Project, have been lawfully satisfied:

1. Written notice of public hearing before the City Council conducted on May 21, 2018 was mailed to all persons owning property within 300 feet of the boundaries of the Project site not later than ten (10) calendar days prior to the date of said hearing.

2. Written notice of public hearing before the City Council conducted on May 21, 2018 was published in a legal section of a newspaper of general circulation not less than ten (10) calendar days prior to said hearing date.

F. That the proposed Project is hereby deemed Categorically Exempt from the California Environmental Quality Act (CEQA), by operation of Section 15301 of the State CEQA Guidelines (i.e. operation of an existing facility involving negligible expansion of use beyond that which was previously existing).

G. That the City Council of the City of Port Hueneme as provided in this Resolution grants approval of Conditional Use Permit Application No. PHCU-838 subject to the following conditions:

1. This approval is granted to the Applicant for the use of a medicinal and recreational cannabis dispensary with delivery services as described in the Applicant's written application and as depicted on exhibits specifically labeled as "Site Plan with Security Device Locations", "Site Plan With Surrounding Uses", "1st Floor Plan (Phase 1 & 2)", 2nd Floor Plan with Security Device Locations" and "Roof Plan with Security Device Locations", all dated April 27, 2018.

Page 107 of 363 2. The terms and conditions of this Permit shall be perpetual and all its future successors and assigns in interest to the Premises and Permit shall be bound hereunder.

3. Permittee agrees to indemnify and hold the City harmless from and against any claims, actions, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City's approval of this Resolution. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the City's approval of this Resolution, the Permittee agrees to defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of the section "the City" includes the City of Port Hueneme's elected officials, appointed officials, officers, and employees.

4. The terms and conditions of Certificate of Approval No. PHCA-05 and Development Agreement No. PHDA-839 and PHDA-839 Major Modification No. 1 shall also apply to this Permit.

5. Permittee agrees that if any of the conditions or limitations of this Permit are held to be invalid by a court of competent jurisdiction, that holding will render this Permit to be null and void.

6. Violation of any of the conditions of this Permit shall be considered a violation of the Port Hueneme Municipal Code and shall constitute grounds for revocation of said Permit.

7. Permittee shall not modify or expand the business operations approved herein without first obtaining a modified or new Certificate of Approval, Conditional Use Permit and Development Agreement.

8. Prior to issuance of a Certificate of Occupancy, Permittee shall install, to the satisfaction of the City of Port Hueneme Chief of Police, a security system that can be accessed via the internet and which includes cameras that provide sufficient coverage of the exterior and interior of suites #106, 107 and 108, as well as cameras at each point of sale location.

9. Permittee must have a minimum of one armed security guard on the premises at all times during regular business hours as well as for a minimum of one hour prior to the business opening and for a minimum of one hour after the business closes.

Page 108 of 363 10. Security shall check for weapons prior to entry into secured areas by employees, visitors and customers.

11. All Conditions of Approval of Resolution No. 4203, approving PHCU- 838 and dated April 2, 2018 shall remain in full effect for the life of the project.

PASSED, APPROVED, AND ADOPTED this 21st day of May 2018.

______Sylvia Munoz-Schnopp, Mayor ATTEST:

______Michelle Kostenuik, City Clerk

APPROVED AS TO FORM

______Charles R. Green, City Attorney

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COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Tony Stewart, AICP, Community Development Director

SUBJECT: CONSIDERATION OF MAJOR MODIFICATION TO PLANNED DEVELOPMENT/CONDITIONAL USE PERMIT NO. PHCU-836 AND DEVELOPMENT AGREEMENT NO. PHDA-837 HUENEME PATIENT CONSUMER CO-OP MEDICAL AND RECREATIONAL CANNABIS DISPENSARY WITH DELIVERY SERVICES, LOCATED AT 501 W. CHANNEL ISLANDS BLVD., SUITES #302-303

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council: (1) open the public hearing to take testimonial and documentary evidence; (2) close the public hearing and consider the evidence; (3) after considering the evidence, adopt the attached Resolution that conditionally approves Conditional Use Permit Application No. PHCU-836 Major Modification #1 and determines the project is categorically exempt from CEQA, and introduce the attached Ordinance which approves Development Agreement Application No. PHDA-837 Major Modification #1 accompanied by title only and waive further reading (with approval to follow at the next regularly scheduled City Council meeting); and (4) take such additional, related, action that may be desirable.

BACKGROUND/ ANALYSIS:

On October 16, 2017 the City Council conditionally approved Conditional Use Permit No. PHCU-836 and introduced for first reading the ordinance approving Development Agreement No. PHDA-837 (and adopted said ordinance on November 6, 2017), approving an application by applicants Paul Watson and Beth Thuna (“Applicant”) to operate a medicinal cannabis dispensary and delivery business, known as Hueneme Patient Consumer Co-op, or "HPCC". The applicant proposed to lease suites #302 and 303 on the top floor of the "Hardy Moll" office building located at 501 W. Channel Islands 8B Page 207 of 363 Boulevard and convert the suites into the subject medicinal cannabis dispensary, which opened for business in April 2018.

At this time, the applicant is requesting to be allowed to sell recreational or adult use cannabis from the dispensary in addition to selling medicinal cannabis products. The applicant was the City's first applicant for a cannabis-related use and as such, made their application prior to the City Council adopting Ordinance No. 734, which now allows the sale of adult use cannabis in addition to medicinal cannabis (approved December 18, 2017). Due to the nature of a cannabis-related business, the project is being brought back to the City Council for action as a Major Modification.

The applicant is not proposing any other changes to the site or subject building, nor to the previously approved business operations or Certificate of Approval application package (security and safety plans, business acumen, community benefits, financials, etc.). The proposed project exhibits (site plan, floor plan, etc.) are provided as Attachment 2. The previously approved City Council staff report packet is provided as Attachment 6.

California Environmental Quality Act (CEQA)

With regard to the public hearing, required notice was mailed to all property owners within 300 feet of the project boundaries.

FISCAL IMPACT:

The applicant submitted a three-year business pro-forma. Table 1, below, indicates the gross revenues expected to be generated by the project at the ends of years 1, 2 and 3, respectively.

Table 1

Year 1 Year 2 Year 3 Gross Revenues $2,553,000 $4,356,000 $4,356,000

Page 208 of 363

After negotiating the amount of revenue the City would receive annually from the proposed business, staff and the applicant agreed that five percent (5%) of the gross revenue is to be paid to the City annually, per the terms of the attached Amended Development Agreement (Attachment 1). Table 2, below, summarizes the project revenue to be paid annually to the City for the first three years the business is in operation, based on the applicant’s revenue projections.

Table 2

Year 1 Year 2 Year 3 Revenue paid to City $127,650 $217,800 $217,800

ATTACHMENTS:

Page 209 of 363 RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME GRANTING APPROVAL OF CONDITIONAL USE PERMIT NO. PHCU-836, MAJOR MODIFICATION #1 (HUENEME PATIENT CONSUMER CO-OP CANNABIS DISPENSARY)

THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1: The City Council finds and declares that:

A. A public hearing was held as required by law to consider an application filed by Mr. Paul Watson and Ms. Beth Thuna (“Applicant” or “Permittee”) for a Conditional Use Permit to allow the operation of a medicinal and adult use cannabis dispensary with ancillary delivery services, known as “Hueneme Patient Consumer Co-op”, with said premises being located at 501 W. Channel Islands Boulevard, Suites #302-303, Port Hueneme, California, Ventura County Assessor’s Parcel No. 190-0-010-085 (“Project”);

B. The applicant has control of the subject site via a three-year lease;

C. The premises is not located within an area wherein the California Coastal Commission retains appeals jurisdiction;

F. The applicant successfully obtained from the City Manager a Certificate of Approval on September 11, 2017 for the subject Hueneme Patient Consumer Co-op cannabis dispensary;

G. Pursuant to the Cannabis Ordinance and Implementing Resolution, a Development Agreement must be approved by the City Council in conjunction with a Conditional Use Permit prior to the operation of any type of medicinal cannabis-related business, and Applicant has applied for and negotiated said Development Agreement, which is being considered along with the Conditional Use Permit for the Project;

H. Public testimony was solicited and considered by the City Council prior to its action on this matter;

Page 210 of 363

I. The City Council considered the effects of this Project on the public safety, health, sanitation, and welfare before rendering a decision;

K. City staff recommended conditional approval of said Project.

SECTION 2: Under the provisions of PHMC Sections 3980 et. seq., the City Council further finds and declares that:

B. That the conditions of approval specified in subsection "G" below are reasonably related to the use of the premises for which this Conditional Use Permit is to be issued and that potentially injurious or detrimental effects will be adequately mitigated.

C. That the proposed Project, with the conditions of approval specified below, is consistent with and furthers the objectives and policies of the Port Hueneme General Plan, Local Coastal Program and Zoning Ordinance; specifically, the proposed medicinal cannabis dispensary furthers Policy 3.2 of the City's General Plan Economic Development Element, which calls for the City to pursue economic development activities, in that medicinal cannabis dispensaries have the potential for generating jobs, attracting visitors to the City and generating additional revenues for the City.

D. That prior to rendering a decision on any aspect of the Permit Application, the City Council reviewed and duly considered the following:

1. All testimony, both written and oral, received in conjunction with that certain public hearing conducted on May 21, 2018, which testimony, by this reference, is incorporated herein.

2. That certain written staff report submitted by the Community Development Department and exhibits thereto dated May 21, 2018, which report, by this reference, is incorporated herein.

Page 211 of 363 3. Project exhibits accompanying the staff report, which information, by this reference, is incorporated herein.

G. That the City Council of the City of Port Hueneme as provided in this Resolution grants approval of Conditional Use Permit Application No. PHCU-836 subject to the following conditions:

1. This approval is granted to the Applicant for the use of a medicinal cannabis dispensary with ancillary delivery services as described in the Applicant's written application and as depicted on exhibits specifically labeled as A.1-"Cover Sheet/Site Plan", A.2-"Proposed Floor Plan", and A.4-"Elevations Plan".

2. The terms and conditions of this Permit shall be perpetual and all its future successors and assigns in interest to the Premises and Permit shall be bound hereunder.

Page 212 of 363 the City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of the section "the City" includes the City of Port Hueneme's elected officials, appointed officials, officers, and employees.

4. The terms and conditions of Certificate of Approval No. PHCA-01 and Development Agreement No. PHDA-837, Major Modification No. 1 shall also apply to this Permit.

5. Permittee agrees that if any of the conditions or limitations of this Permit are held to be invalid by a court of competent jurisdiction, that holding will render this Permit to be null and void.

6. Violation of any of the conditions of this Permit shall be considered a violation of the Port Hueneme Municipal Code and shall constitute grounds for revocation of said Permit.

7. Permittee shall not modify or expand the business operations approved herein without first obtaining a modified or new Certificate of Approval, Conditional Use Permit and Development Agreement.

8. All Conditions of Approval of Resolution No. 4190, approving PHCU- 836 and dated October 16, 2017 shall remain in full effect for the life of the project.

PASSED, APPROVED, AND ADOPTED this 21st day of May 2018.

______Sylvia Munoz-Schnopp, Mayor ATTEST:

______Michelle Kostenuik, City Clerk

APPROVED AS TO FORM

______Charles R. Green, City Attorney

Page 213 of 363 ORDINANCE NO. _____

THE CITY COUNCIL DOES ORDAIN AS FOLLOWS:

A. On June 5, 2017, the City Council approved Ordinance No. 727 that amends Article III, Chapter 12 of the Port Hueneme Municipal Code (“PHMC”), entitled "Medicinal Cannabis Activity";

C. The Ordinance requires that an applicant approved to operate a commercial cannabis facility with the City of Port Hueneme shall enter into a Development Agreement with the City.

E. On June 19, 2017, the City Council adopted a resolution, Resolution 4178, which established the procedures and requirements for the consideration of development agreements.

F. Hueneme Patient Consumer Co-op (hereinafter, the “Applicant”) is an approved applicant under Ordinance 734 and is thereby authorized, subject to completion of the City’s requirements, to operate a medical and recreational marijuana dispensary with delivery services within the City.

G. The Applicant and the City had agreed to enter into that certain Development Agreement dated October 16, 2017, entitled “Development Agreement [Hueneme Patient Consumer Co-op]" (the “Development Agreement”).

H. The Applicant and the City have agreed to enter into that certain Amended Development Agreement dated May 21, 2018, entitled “Amended Development Agreement [Hueneme Patient Consumer Co-op]" (the “Amended Development Agreement”).

Page 214 of 363

SECTION 1: The City Council finds and determines as follows:

A. The Applicant has been approved through the City’s required procedures as an operator of a medical and recreational marijuana dispensary with delivery services (the “Business”) located at 501 W. Channel Islands Blvd., Suites #302- 303, Port Hueneme, California, subject only to the issuance of a Conditional Use Permit for the development and construction of the Business and the approval of this Ordinance.

C. The Development Agreement is:

1. Consistent with the objectives, policies, land uses and programs specified in the general plan and any applicable specific plan of the City;

2. Compatible with the uses and regulations for the land-use area in which the Business is located;

3. In conformity with public convenience, general welfare and good land-use practice;

4. Not detrimental to the health, safety and general welfare; and

5. Offers the City and the public substantial benefit in exchange for the vested right benefit granted to the Applicant.

D. In approving this Ordinance, the City has complied with the requirements of the California Environmental Quality Act.

Page 215 of 363 SECTION 3: This Ordinance will take effect on the 31st day following its final adoption and passage.

PASSED AND ADOPTED this ______day of ______, 2018.

______Sylvia Munoz-Schnopp, Mayor ATTEST:

______Michelle Kostenuik, City Clerk

APPROVED AS TO FORM

______Charles R. Green, City Attorney

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COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Fred Camarillo, Deputy Public Works Director

SUBJECT: AUTHORIZATION TO ENTER INTO A SEWER MAINTENANCE SERVICES AGREEMENT WITH THE OXNARD HARBOR DISTRICT

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council authorize entering into an agreement with the Oxnard Harbor District (District) to perform sewer maintenance services.

BACKGROUND/ANALYSIS:

Over the last few years, at the request of the District, the City has performed certain repairs to improve portions of the District sewer system, at the expense of the District.

In early 2016, the District approached the City regarding the possibility of entering into an agreement whereby the City would perform periodic preventative maintenance of the District sewer system.

Duties include semi-annual inspections of their lift station mechanical and electrical equipment, sewer backup emergency calls, and periodic cleaning and inspection of the collection system.

Due to turnover in Port staffing, the entities did not enter into the agreement in 2017. It is the desire of both Port and City staff to resume the services agreement in 2018. The agreement calls for all services to be completed by December 31, 2018, unless extended by the District in writing. 9A

Page 321 of 363 FISCAL IMPACT:

The agreement is a not to exceed amount of $17,889.53 without written approval from the Chief Executive Officer and Port Director. All costs related to City personnel and equipment costs are fully recovered through the agreement. In addition, the agreement allows for up to an additional $1,300 in administrative fees to be realized in the General Fund.

ATTACHMENT:

1.) Agreement

Page 322 of 363 MAINTENANCE SERVICES AGREEMENT BY AND BETWEEN THE OXNARD HARBOR DISTRICT AND CITY OF PORT HUENEME FOR SEWER MAINTENANCE SERVICES

Section 1. PARTIES: This Agreement ("Agreement") regarding the Maintenance Services described below ("Services") to be provided by City of Port Hueneme, a charter city and municipal corporation ("City") as an independent contractor to the Oxnard Harbor District ("District”) is dated as of June 1, 2018. City is retained as an independent contractor and is not an employee of the District.

Section 2. SERVICES; SCHEDULE OF PERFORMANCE: The Services to be provided are more particularly described in the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference. Services on the Project shall begin immediately and be completed by December 31, 2018, unless extended by the District in writing.

Section 3. STANDARD OF CARE: City shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California, and consistent with all applicable laws. City represents that it and its employees have all licenses, permits, qualifications, training, and approvals of whatever nature that are legally required to perform the Services, including any required Business Licenses, State Water Resources and/or Regional Water Quality Control Board permits and training. City further represents that such licenses and approvals shall be maintained throughout the term of this Agreement, copies of which shall be provided on request.

Section 4. SUBSTITUTION OF KEY PERSONNEL: City represents to the District that certain key personnel will coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, City may substitute other personnel of at least equal competence upon written approval of District. In the event that District and City cannot agree as to the substitution of key personnel, District shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Fred Camarillo and Brian Fomenko.

Section 5. COMPENSATION: The total compensation shall not exceed seventeen thousand, eight hundred and eighty-nine dollars, and fifty three cents ($17,889.53) without written approval of District's Chief Executive Officer & Port Director. City's invoice shall include a detailed description of the Services performed. Invoices shall be submitted to the District monthly as performance of the Services progresses. District shall review and pay the approved charges on such invoices in a timely manner.

Section 6. PREVAILING WAGES: City is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. Since Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, City agrees to fully comply with such Prevailing Wage Laws. District shall provide City with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. City shall make available to interested parties upon request the copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services and shall post copies at the City's principal place of business and at the project site. City shall defend, indemnify and hold harmless the District, its Harbor Commissioners, directors, officials, officers, employees, volunteers and agents free and harmless from any claim of liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

Page 323 of 363 Since Services are being performed as part of an applicable "public works" or "maintenance" project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the City and all subcontractors performing such Services must be registered with the Department of Industrial Relations. City shall maintain registration for the duration of the Project and require the same of any subcontractor, if applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be City's sole responsibility to comply with all applicable registration and labor compliance requirements.

Section 7. INSURANCE: District acknowledges that City is a member of a joint powers authority that provides sufficient insurance coverage for the Services contemplated by this Agreement.

Section 8. TERMINATION: The District may terminate this Agreement at any time with or without cause. If the District finds it necessary to terminate this Agreement without cause before Project completion, City shall be entitled to be paid in full for those Services adequately completed prior to the notification of termination. City may terminate this Agreement upon 30 calendar days' written notice to the District only in the event of District's failure to perform in accordance with the terms of this Agreement through no fault of City.

Section 9. LAWS®ULATIONS; EMPLOYEE/LABOR CERTIFICATIONS: City shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements; all emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD), the California Air Resources Board (CARB) or other governmental agencies; and all water quality laws, rules and regulations of the Environmental Protection Agency, the State Water Resources Control Board, the Los Angeles Regional Water Quality Control Board and the District. By executing this Agreement, City verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. City shall maintain records of its compliance, including its verification of each employee, and shall make them available to District or its representatives for inspection and copy at any time during normal business hours. District shall not be responsible for any costs or expenses related to City's compliance with the requirements. City's failure to comply or any material misrepresentations or omissions relating thereto shall be grounds for terminating this Agreement for cause. By its signature hereunder, City certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of Services. Finally, City represents that it is an equal opportunity employer and it shall not discriminate against any sub consultant, employee or applicant for employment in violation of state or federal law. As provided for in the indemnity obligations of this Agreement, City shall defend, indemnify, and hold harmless District against any alleged violations of this paragraph, including, but not limited to, any fines or penalties imposed by any governmental agency.

Section 10. GOVERNING LAW; VENUE; GOVERNMENT CODE CLAIM COMPLIANCE; ATTORNEYS' FEES: This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in Ventura County, State of California. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, City must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against District. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those

Page 324 of 363 matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by City. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, City shall be barred from bringing and maintaining a valid lawsuit against District. In the event of any such litigation between the parties to compel performance of this Agreement, the prevailing party shall be entitled to recover all reasonable costs incurred, including reasonable attorneys’ fees, as determined by the court.

Section 11. ASSIGNMENT; AMENDMENT. City shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of District, which may be withheld for any reason. This Agreement may not be modified or altered except in writing signed by both parties. Except to the extent expressly provided for in the termination paragraph, there are no intended third-party beneficiaries of any right or obligation of the Parties.

Section 12. ENTIRE AGREEMENT; CONSTRUCTION & CAPTIONS: This is an integrated Agreement representing the entire understanding of the parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. Since the parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any party. The captions of the various paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

WE HAVE EXECUTED THIS AGREEMENT ON THE DATE BELOW WRITTEN, EFFECTIVE UPON EXECUTION AND DELIVERY BY ALL PARTIES.

CITY OF PORT HUENEME

Date: By: ______Its: ______

OXNARD HARBOR DISTRICT

Date: By: ______Kristin Decas, CEO & Port Director

Page 325 of 363 Page 326 of 363 City of Port Hueneme

COUNCIL AGENDA STAFF REPORT

TO: City Council

FROM: Charles Green, City Attorney

SUBJECT: RESOLUTION APPROVING PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS WITH HARVEY CHAMPLIN ASSOCIATES, LLC FOR DEVELOPMENT, CONSTRUCTION AND OPERATION OF A HOTEL FACILITY

DATE: May 21, 2018

RECOMMENDATION:

It is recommended the City Council adopt the attached resolution approving an agreement with Harvey Champlin Associates, LLC (the “Developer”), to possibly sell a single parcel of land located at or near the intersection of Market Street and E. Surfside Drive, adjacent to the beach and abutting the boundary of the Port, for the purpose of construction and operation of a hotel.

BACKGROUND/ANALYSIS:

This matter previously came before the City Council on October 16, 2017, and was not approved at that time. Since that meeting, the Developer has undertaken additional study of the possible project, issues discussed with staff, public comment, and Council statements during the first consideration of the project.

As a result, the Developer has substantially altered the concept of the project in the following ways:

1. The office tower component previously proposed has been eliminated, and the project consists solely of a hotel on a single site. As a result, the height of the proposed hotel will be substantially reduced, possibly by half to six (6) stories from the original twelve (12). 11A Page 327 of 363

2. The Developer now proposes not to purchase the parcel across the street, which was previously considered as possible parking, and will construct the necessary parking on the main hotel site.

3. These changes will substantially reduce the visual impact, as well as parking and other impacts, of the proposed project.

Revenue Generation. The City Council has expressed its clear intention to find ways to increase and stabilize the revenues of the City in order to address the structural budget deficit which currently exists and has existed for several years. One of the few ways available to the City, given that it has no space for big box retailers or auto malls, the typical sales tax generators that can produce substantial revenues, is through transient occupancy taxes (“TOT”).

The instant project is possible due to the City’s nature as a beach community and its proximity to and interdependence on the Port and the Navy base.

The Project and the Developer. The agreement before the City Council is with Harvey Champlin Associates, LLC. Mr. Champlin, the principal, is a well-known and well-regarded developer of hotel properties around the world. He proposes to build a project on the site which, depending on design and construction factors, is anticipated to consist of a approximately a six story hotel (depending on design factors arising from moving all parking to the main site) up-scale full- service commercial hotel. The project is intended to take advantage of the fact that there is currently only one hotel of significant size in the City, which has a significantly lower price point than the intended hotel. The projected hotel is expected to capture the more affluent market, including visitors to and businessmen doing business with the Navy base, as well as companies involved in utilizing the Port.

It is not intended to be a resort hotel, although it is anticipated to have an upscale restaurant facility which will be of regional interest.

City Owned Property. The City is the owner of the land which is the subject of the agreement. One of the key facts affecting the land available for development of the project is the possibility, outlined in the agreement, of moving the pathway along the beach to the light house, originating near or at the intersection of Market and Surfside closer to the rip rap/breakwater and have it then swing inward to bring foot traffic to the existing Flag Plaza. This is only a possibility since the design of the project has, of course, not yet begun, and because this may involve negotiations with the Port. The Developer would significantly improve the Flag Plaza if this option is undertaken, although the exact nature of the improvements is not yet known. This entire arrangement would create

Page 328 of 363 additional land which would be available for sale to the Developer and would increase the footprint of the available space, assisting in locating the project on the single site.

Economic Benefits to City. The revenues to the City if the project comes to fruition consist of three forms:

1. Land Sale.

The property has been appraised by the City’s appraiser and the purchase price will be $2,301,811.

2. Ad valorem property taxes.

Although not in the range of the other benefit, the City’s share of property tax on the project, assuming the cost is in the $40,000,000 range, which is speculative at this time, and using the City’s limited share of property tax, which I believe to be 16%, the City will receive approximately $64,000 a year. This of course is an ongoing revenue source, unlike the land sale. Using a 30-year period, which is the standard term of a hotel loan, this will amount to around $1,920,000. Currently the subject land generates no property tax since it is in public ownership.

3. Transient Occupancy Tax.

The largest economic benefit is, of course, the transient occupancy tax, also an ongoing revenue source, which is assessed on visitors staying at the hotel. Mr. Champlin has estimated that annual amount at approximately $900,000. Using a more conservative approach, Staff has estimated it at somewhere between $750,000 to $800,000. Over 30 years this could produce general fund revenue for the City in excess of $20,000,000. This revenue can be, if the project is ultimately build, one of the cornerstones of the City’s economic recovery.

4. Costs of Sale/Escrow.

All costs of sale, escrow, title and so on will be paid by the Developer.

Other Benefits.

Page 329 of 363 In addition to the revenue benefits, the project will also provide the City with an upscale hospitality option, and an upscale dining option, both also lacking in the City. It will generate a number of jobs, both temporary and permanent, many of which should go to residents of the City. Finally, it will have the effect of improving property values within the area.

As a beach-related project, its nature as a commercial business hotel has the advantage of being relatively small scaled compared to a resort facility, and is located in a site which will have less view impact than prior projects which have been proposed in the area, due both to its smaller size and the location of the site, “around the corner,” as it were, of the Port’s boundary line. Having said that, until the design is finalized, the extent of impact cannot be known with certainty. The City will have the right to approve final design of the facility.

Project Timing.

If the agreement is approved, escrow will be opened within 10 days. Investigation since the original hearing date has shown that the Due Diligence period needs to be considerably longer than anticipated due to the complexity of the development elements, and the need to obtain Coastal Commission approval. The Developer will have until March 15, 2019, to complete its Due Diligence, although the parties hope for a faster resolution. There is a provision for an extension of this period if the Developer has acted promptly but has been unable to obtain entitlements within the due diligence period for reasons beyond his control.

Developer Deposits.

The Developer will deposit $50,000 within 3 days of the opening of escrow. This amount will be increased to $100,000 as soon as the City has completed the zoning revision necessary for the project, and increased to $200,000 when the conditions to close have been satisfied. If the Developer fails to close for any reason which is not allowed or permitted under the contract and which is not caused by the City, the amount of the Deposit (as it may exist at the time) will be paid over to the City.

City Assurances.

This project is obviously of substantial importance to the economic future of the City. For that reason, at close of escrow the first document recorded will be a Declaration of Covenants which will be available to the Council prior to its action on this matter. The Declaration will be binding on the land and all owners of it hereafter, for a period of 30 years, and will require that the property be used for the construction and operation of a hotel.

Page 330 of 363 The Declaration requires the owner to actively develop, construct and operate a hotel on the site. A failure to do so is a violation of the agreement and will entitle the City to seek any number of remedies, including a judgement of specific performance, damages or a cancellation of the agreement. Any non-performing owner would quickly face the likelihood of either having its assets levied upon for money damages, or at the City’s option, a cancellation of the agreement, with damages, and a return of title.

Environmental Review.

The approval of this agreement is not an approval of the final project. The agreement specifically makes compliance with the California Environmental Quality Act a requirement, and no final approval of the entitlements of the project will be undertaken until the environmental impacts are known and public hearings are held to discuss them.

In approving this agreement, the City is acting as the owner of the land, rather than as the government body which will ultimately approve or disapprove the project. Nothing in the agreement serves to short cut any procedure or requirement which the City undertakes that would normally apply to such a project, and the City will consider those factors at the appropriate time when the size, design and specifics of the project are known.

FISCAL IMPACT:

The recommended action will have no immediate significant impact on the general fund.

If the due diligence period is successfully completed and escrow closes, the City will receive the purchase price of $2,301,811. When the project is completed, the City will receive the annual property tax allocation of approximately $64,000, and the annual TOT payment of approximately $750,000.

Thus, the combined annual benefit of continuing payments will likely be in excess of $800,000.

ATTACHMENTS:

1.) Resolution 2.) Purchase and Sale Agreement and Escrow Instructions (executed by Developer)

Page 331 of 363 RESOLUTION NO.____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT HUENEME APPROVING A PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS FOR SALE OF LAND RELATED TO DEVELOPMENT AND OPERATION OF A HOTEL

The City Council of the City of Port Hueneme resolves as follows:

SECTION 1: The City Council finds as follows:

A. The City of Port Hueneme (the “City”) has an ongoing structural budget deficit, the elimination of which is one of the City’s highest priorities.

B. A project which generates substantial amounts of transient occupancy tax, payable by visitors to a hotel facility within the City, is one of the key methods for generation of revenue to address the City’s budget issues.

C. The proposed contract serves the City’s goals by creating an upscale hotel, which is absent within the City, and by generating both ongoing and onetime economic benefits, all of which will be of major assistance in achieving a balances budget and fiscal stability.

SECTION 2: The City Council hereby finds, determines and orders as follows:

The Purchase and Sale Agreement and Escrow Instructions between the City and Harvey Champlin Associates, LLC, meets the needs of the City and provides a beneficial opportunity to enhance the City’s revenues while adding valuable amenities to the City, LLC, and said agreement is hereby approved. The Mayor is authorized to immediately execute the agreement on behalf of the City.

SECTION 3: This Resolution will become effective immediately upon adoption.

PASSED AND ADOPTED this 21st day of May, 2018.

______MAYOR, SYLVIA MUNOZ SCHNOPP ATTEST:

______MICHELE KOSTENUIK, CITY CLERK

Page 332 of 363 APPROVED AS TO FORM:

______CHARLES R. GREEN, CITY ATTORNEY

Ayes: ______Nos: ______Absent: ______

______Michele Kostenuik City Clerk

Page 333 of 363 PURCHASE AND SALE AGREEMENT

AND

ESCROW INSTRUCTIONS

[Hotel/Office Project]

This Purchase and Sale Agreement and Escrow Instructions (the “Agreement”) is entered into by and between the CITY OF PORT HUENEME, a California municipal corporation (the “Seller”), and HARVEY CHAMPLIN ASSOCIATES, LLC, a California limited liability company (or a new single-purpose entity to be created by Harvey Champlin for the purposes of the subject project, which entity will be substituted herein) (the “Developer” or “Buyer”). Together said parties may be referred to herein as the “Parties,” or individually as a “Party.” This Agreement bears, for record purposes only, the date of May 7, 2018 (the “Record Date”).

RECITALS

1. Seller is the fee simple owner of the real property located in the City of Port Hueneme, California (the “City”), consisting of one (1) parcel, which is set forth in a site map, and legally described, in Exhibit “A” attached hereto and bearing the designation of APN 206-0-100-340 (the “the Property”).

2. Buyer desires to purchase the Property for the purposes of developing an upscale full-service commercial hotel with on-site parking and other hotel-related amenities (the “Project”).

3. Seller finds and Buyer recognizes that the Property is one of the few sites in the City of significant size and one of the few available and acceptable sites for a beach front hotel, and that Seller would not sell the Property to any person or entity that was not going to use the Property for a purpose that serves to further Seller’s goals, which extend well beyond merely selling the Property and having it developed. Seller will only sell the Property for a project which meets the standards and needs of the community and which furthers the goals of Seller to develop hotel facilities to serve and complement the port and military facilities already located within the City, and which generates significant revenue to Seller in order to ameliorate Seller’s ongoing financial difficulties (all of which, taken together, are referred to herein as “Seller’s Goals”).

4. Seller requires that Buyer covenant to develop the Property, and to conduct operations thereon, in a specific way which Seller has determined to be necessary to maximize the achievement of Seller’s Goals. Buyer acknowledges that Seller would not enter into this Agreement without the conditions and controls provided herein which assure that Seller’s Goals are furthered.

Page 334 of 363 NOW, THEREFORE, THE PARTIES AGREE TO BE BOUND BY THE PROMISES, COVENANTS AND OBLIGATIONS CONTAINED IN THIS AGREEMENT, EACH OF THEM ACKNOWLEDGING THE SUFFICIENCY OF THE CONSIDERATION GIVEN TO IT.

TERMS AND CONDITIONS

Section 1. Incorporation of Recitals, Exhibits

Each of the Recitals set forth above is incorporated into these Terms and Conditions, and the Parties each acknowledge and agree to the truth and accuracy thereof. Each of the Exhibits attached hereto is included herein by reference.

Section 2. Parcel Use.

2.1 Generally.

2.1.1 It is understood and agreed that this Agreement is to provide a structure whereby Buyer may know that if its due diligence on the Property reveals that the Project is feasible, a design of a proposed Project can be accomplished for review and approval by Seller. As such, all references in this Agreement to the Project must be deemed to be proposals only, since Buyer’s due diligence may require that the Project be built in a different manner, consist of different elements, be of a different size or orientation on the Property or determine that the Project is not feasible to Buyer. The Parties agree that they will act in good faith to amend this Agreement as necessary in order to accommodate the Project as it may ultimately be designed and approved by both Parties.

2.1.2. The Parties acknowledge that there is land between the boundaries of the Property and the riprap border of the Pacific Ocean, which extends to the west until it meets the Pacific Ocean at that point (the “Port Parcel”), which is owned in fee title by the Oxnard Harbor District (“Port”). It is further acknowledged that Seller possesses an easement in perpetuity over some or all of the Port Parcel for vehicular and pedestrian access. Although it cannot be determined until the due diligence and design process is completed, there is a possibility that the Project may require, or the viability of the Project may be substantially enhanced by, the use of a portion of the area of the Port Parcel which lies between the boundary of the Property and the riprap (the “Additional Parcel”). In that event, the following will apply:

2.1.2.1 If Buyer determines that no use of the Additional Parcel is required, for the Project, then no action with regard thereto will be undertaken by the Parties.

2.1.2.2 If Buyer determines that no use of the Additional Parcel is required, but that access for the Project is necessary, then the Parties will act cooperatively to seek an agreement with the Port to (i) move the pathway to the south, abutting the riprap, in

Page 335 of 363 order to allow for an improvement of the appearance thereof and to permit a more effective interface of the Project with the Additional Parcel, and (ii) to provide an easement for access over the pathway and/or some of the Additional Parcel as necessary. It is contemplated, but not yet certain, that the Project design will involve a more substantial and attractive pathway and entrance to the area for the use of the general public and to enhance the entrance of and/or access to the Project facilities.

2.1.2.3 If Buyer determines that the preferred design of the Project requires that the footprint of the Project extend into a portion of the current Additional Parcel, then the Parties will agree to cooperatively seek an agreement with the Port to purchase said portion and to include it into the description of “Property” for the purposes of this Agreement. This option does not exclude, and in fact will likely require, some form of the agreement with the Port described in subsection 2.1.2.2.

2.1.2.4 Buyer shall make the decision(s) regarding the Additional Parcel prior to the end of the due diligence period. If it is determined that one of the alternatives set forth in subsections 2.1.2.2 or 2.1.2.3 is selected by Buyer, the Parties will amend this Agreement to so provide and to make any changes to the Agreement necessary to be consistent therewith.

2.2 References to “Property” in this Agreement

The defined term “Property” as used in this Agreement shall not refer to the Additional Parcel until such time as Buyer has made its decision with respect to inclusion of the Additional Parcel and notified Seller and Escrow Agent of that decision in writing. In such case, and upon conclusion of the acquisition of the rights or ownership in the Additional Property as may occur, the term “Property” will be deemed to be redefined to refer to both the original parcel and the specific rights or ownership of the Additional Parcel as occurs.

3. Purchase and Sale

3.1 Purchase and Sale

Seller agrees to sell the Property to Buyer and Buyer agrees to purchase the Property from Seller for the amount determined as follows (the “Purchase Price”), upon all of the terms and conditions set forth in this Agreement, in order to develop the Project. The Purchase Price will be adjusted as is appropriate if the Auxiliary Parcel is to be included in the Project.

3.2 Amount of Purchase Price

The purchase price for the original Property shall be TWO MILLION THREE HUNDRED ONE THOUSAND EIGHT HUNDRED ELEVEN DOLLARS ($2,301,811) (the

Page 336 of 363 “Purchase Price”). The Purchase Price will be adjusted as necessary to reflect any agreement reached with respect to the Additional Property.

3.3 Payment of Purchase Price

The Purchase Price is due at the Close of Escrow (as defined hereinafter) and is a condition precedent to Close of Escrow.

3.4 Title, Escrow, Fees and Closing Costs

It shall be the sole responsibility of Buyer to pay all charges, costs and fees which arise or become due in connection with the transaction contemplated by this Agreement, including, without limitation, title fees for the Buyer’s and lender policies of title insurance, escrow fees and charges, recording fees and charges and all other normal and applicable fees and charges which arise in connection with the sale of real property.

Section 4. Title

Seller shall convey, by grant deed (the “Grant Deed”) in the form attached hereto as Exhibit “B,” good and marketable fee simple title to the Property to Buyer at the Close of Escrow, free of any other monetary or other interests or encumbrances affecting the condition of title except as otherwise permitted in Section 5.1 below.

Section 5. Conditions to Close of Escrow

The Parties’ obligation to perform under this Agreement, and the Close of Escrow, shall be subject to the satisfaction of the conditions set forth in this Section 5 and elsewhere in this Agreement. In the event any of these conditions are not satisfied within the specified time limit(s), if any, Buyer or Seller may, at its sole option and discretion, and if such Party was not responsible for satisfying the said condition, either waive such condition(s) or terminate this Agreement.

5.1 Approval of Title to the Property/Declaration of Covenants

5.1.1 Title to the Property shall be in the condition required by this Agreement as of Close of Escrow. At Close of Escrow, the Policy shall show as exceptions only the following: (i) the standard printed exceptions set forth in the title policy; (ii) general and special real property taxes and assessments, if any, for the current fiscal year, a lien not yet due and payable; (iii) the Declaration of Covenants, in the form attached hereto as Exhibit “C”; (iv) a deed of trust in first lien position in favor of Buyer’s lender, if applicable; and (v) any other exception consented to in writing by Buyer. All of the items listed in this paragraph 5.1.1 shall be permitted exceptions to the title (the “Permitted Exceptions”). Buyer covenants that it will consent to any exception to title which does not affect or impede the development and operation of the Project.

Page 337 of 363 5.1.2 No later than twenty (20) business days after the Opening of Escrow (as defined in Section 6.2), Buyer shall, at its sole cost and expense, if any, cause a title company approved by Seller (the “Title Company”) to provide both Buyer and Seller with a preliminary title report (the “PTR”) on the Property together with complete and legible copies of all instruments referred to in the PTR as conditions or exceptions to title, and all plotted easements. In the event that Buyer, within ten (10) business days following receipt of the PTR, objects in writing to any exceptions disclosed therein, on the basis that it affects or impedes the development of the Project, site plans, other than the Permitted Exceptions, Seller must either: (i) cause the removal of said exceptions on or before the Close of Escrow (or commence the work necessary to accomplish removal if such removal requires more than ten (10) days; or (ii) notify Buyer within ten (10) business days of receipt of Buyer’s objections of its inability or unwillingness to remove the condition. In the event Seller provides such notice, and immediately thereafter, or if Seller fails to clear any exception to which Buyer has objected in accordance with this paragraph prior to the Close of Escrow, Buyer shall have the right to terminate this Agreement. Upon such termination, the Parties shall be relieved of any and all obligations under this Agreement without cost or penalty, and each of them shall bear such costs as they may have incurred to that date.

5.2 Buyer’s Obligation to Proceed with Project/Permits

5.2.1 It is acknowledged by the Parties that after the Close of Escrow Buyer is to undertake the Project by (i) finalizing all necessary permits and commencing the work of constructing the Project as soon as possible, it being understood that finalization of construction documents for the Project is not feasible until all required governmental permits and entitlements other than building permits have been received; and (ii) diligently pursuing construction and development of the Project to completion. To expedite this process, Buyer will undertake as part of the Due Diligence, as defined below, the City’s pre-application procedures. In terms of the Closing Date, it is agreed that while the Parties will set such a date in this Agreement, that date is subject to revision as necessary to adjust for delays in obtaining the aforesaid approvals, and allowing time for completion of construction thereafter. For the purposes of this Section 5.2, the term “completion” shall mean finalization of the Project to the point that final Certificates of Occupancy can be issued by the City in accordance with its normal standards and procedures.

5.2.2 It is agreed by the Parties that Buyer shall, prior to the Close of Escrow, have obtained all necessary entitlements for the Project and be able and ready to obtain necessary permits to immediately commence construction thereof at the Close of Escrow, including, without limitation, grading permits and building permits, any approvals required by other agencies than the City, including, but not limited to, the County of Ventura, the United States Navy, the Oxnard Harbor District and/or the

Page 338 of 363 California Coastal Commission. Buyer’s receipt of the entitlements and necessary permits pursuant to this Section 5.2 shall be a condition to the Close of Escrow.

5.2.3 In entering into this Agreement, Seller is acting as the seller of the Property and not as the City, and it shall not be bound to the limitations and restrictions applicable to the City when acting as a government body. Seller’s approval of the items in this Section 5.2 shall be subject to a rule of reason and satisfaction of Seller’s Goals, except where a different standard is otherwise specifically provided.

5.2.4 In connection with subsection 5.2.3, it is agreed that Seller shall have the right to approve the final design of the Project, including, without limitation, any improvements to the Additional Site. In granting or denying its approval, Seller shall act in a reasonable manner and shall be bound to work with Buyer to address any concerns which Seller may have regarding the design of the Project. Seller’s approval of final design is a condition precedent to Close of Escrow.

5.2.5 It is understood that some applications or entitlement documents may require the signature of the owner of the Property in order for Buyer to be able to proceed, and Seller agrees to execute same in Seller’s capacity as the owner of the Property if said applications or documents are otherwise reasonable and in order.

5.3 Seller’s Approval of Buyer’s Financing

Prior to and as a condition to the Close of Escrow, Buyer shall provide evidence satisfactory to Seller that it possesses funds sufficient to develop, construct and complete the Project as approved by Seller, including proof of a construction loan and of a “take out” commitment for a permanent loan, both from reputable lenders. Seller’s rights of approval are limited to receipt from a reputable lender of written certification that funds are available in the amount necessary to construct the Project, less any contributions from Buyer.

5.4 Buyer’s Approval of Condition of Property/Due Diligence Period

5.4.1 Buyer shall have the sole responsibility of inspecting and/or testing the Property as it deems necessary in order to determine that the condition of the Property is suitable for Buyer’s intended use of the Property. All tests and/or inspections shall be at the sole cost of Buyer. Buyer shall review the condition of the Property and shall give notice of acceptance or non-acceptance of the condition of the Property not later than March 15, 2019, which is the time Buyer has requested to conduct all of the tests listed in Exhibit “D” and complete the City’s pre-application process (collectively, the “Due Diligence Items”). If any portion of the Due Diligence Items is in the control of Seller and there is a delay therein then the due diligence period will be extended to allow completion of said Seller-controlled Due Diligence Items. The amount of time represented by the

Page 339 of 363 period from the Effective Date to March 15, 2019, and any extension occurring due to City control, shall be referred to herein as the “Due Diligence Period”.

5.4.2 Buyer may request an extension to the Due Diligence Period if delays in obtaining or completing Due Diligence Items, other than those in the total or partial control of the City, shall be delayed for reasons outside of Buyer’s control, provided that Buyer has proceeded in a reasonable manner to order or undertake said Due Diligence Items and has acted in a reasonable and diligent manner to attempt to complete said tests within the Due Diligence Period. In such case, Buyer may obtain an extension of the Due Diligence Period by requesting same in writing prior to the expiration of the Due Diligence Period, and showing good cause for an extension as provided herein. Seller shall grant such extension if Buyer has acted promptly and diligently but still requires additional time.

5.4.3 Seller hereby grants a license to Buyer and Buyer’s agents to enter upon the Property and conduct inspections and/or testing of the Property, at Buyer’s sole risk. Said license shall be for the term of the Escrow and shall cease upon the termination of the Escrow prior to a full closing.

5.4.4 If Buyer fails to give notice of acceptance or non-acceptance of the condition of the Property within the time frame allowed (as extended if applicable), Buyer shall irrevocably be deemed to have approved the condition of the Property. Buyer’s approval, actual or deemed, of the condition of the Property is a condition to the Close of Escrow. After Close of Escrow, Seller shall have no liability for the condition of the Property. Seller covenants to inform Buyer within ten (10) working days after the Escrow is opened of any adverse conditions on the Property of which Seller is aware. For the purposes of this subsection 5.4, “aware” means within the actual knowledge with a duty of inquiry and investigation of the Public Works Director of Seller. Buyer hereby agrees that it is buying the Property in its “as is” condition and agrees that Seller shall have no liability for any adverse condition found on the Property, except for conditions within the actual knowledge of the Public Works Director, with a duty of inquiry and investigation.

5.5 Initial Buyer Deposits

5.5.1 Within three (3) working days of the Opening of Escrow, Buyer will deposit in Escrow the sum of Fifty Thousand Dollars ($50,000.00). This amount, as it may be increased pursuant to the provisions of subsections 5.5.2 and 5.5.3, shall be referred to herein as the “Deposit”. In the event that Escrow does not close as and when provided in this Agreement through no fault of Seller, and is not extended by mutual agreement of the Parties, or if an extension or extensions of the date of Close of Escrow has or have been mutually agreed upon, then upon the expiration of the final extension period, the Deposit will be released by Escrow Agent to Seller in accordance with Section

Page 340 of 363 10.3, to compensate Seller for the loss of opportunity to seek other purchasers, the loss of time and to reimburse Seller for costs incurred by it in connection with the negotiation and preparation of this Agreement, and preparing and/or providing any documents or other materials to Escrow and/or Buyer, including, without limitation, attorneys’ fees and for the time expended by Seller’s staff (collectively, the “Reimbursable Expenses”). The disbursement to Seller provided in this subsection 5.5.1 in the event the Escrow fails to close shall not occur if the Escrow does not close (i) due to Seller’s inability to remove an impermissible exception to title in accordance with Section 5.1; (ii) if Buyer refuses to accept the condition of the Property in accordance with Section 5.4; (iii) if Buyer fails to receive any other necessary approval, entitlement or permit in accordance with Section 5.2; or (iv) if Seller defaults under this Agreement, in which case the Deposit shall be returned to Buyer. If the Escrow does close in accordance with this Agreement, the Deposit shall be credited by Escrow Agent against the sums due through Escrow from Buyer.

5.5.2 At the end of the Due Diligence Period, and contingent upon Buyer’s removal of the Due Diligence contingency, the deposit provided in Section 5.5.1 shall be increased to a total of One Hundred Thousand Dollars ($100,000.00),

5.5.3 At such time as the zone change to be undertaken by the City with respect to the Property to permit the Project as a matter of right has been completed, Buyer shall increase the deposit to a total of Two Hundred Thousand Dollars ($200,000.00). If the zone change occurs prior to the end of the Due Diligence Period, then upon completion of the zone change the initial deposit of Fifty Thousand Dollars ($50,000.00) will be increased to One Hundred Thousand Dollars ($100,000). In such case, when the Due Diligence Period is completed, and contingent upon Buyer’s approval of the Due Diligence Tests, Buyer will increase the deposit from One Hundred Thousand Dollars ($100,000.00) to Two Hundred Thousand Dollars ($200,000.00).

5.6 Seller Deposits

Not later than five (5) business days prior to Close of Escrow, Seller shall have deposited in Escrow all documents required by this Agreement or Escrow Agent’s standard escrow instructions, including, without limitation, a fully executed and acknowledged (i.e. notarized) Grant Deed.

5.7 Buyer Closing Deposits

Not later than five (5) business days prior to Close of Escrow, Buyer shall have deposited in Escrow all documents required by this Agreement or Escrow Agent’s standard escrow instructions, fully executed and acknowledged where required, including, without limitation, the Declaration of Covenants, and all funds required by the

Page 341 of 363 instructions, including, without limitation, the Purchase Price and other sums as are debited to Buyer through Escrow, less any appropriate credits.

5.8 Proof of Lawful Standing

Prior to and as a condition to the Close of Escrow, Buyer shall provide to Seller satisfactory evidence of the legal formation and existence of Buyer and the good standing of Buyer with the State of California to hold title to the Property and to develop the Project.

5.9 Corporate Authorization

As a condition of Close of Escrow, Buyer shall provide the escrow company (the “Escrow Agent”) with a resolution adopted by the Board of Directors or Managing Member(s) of Buyer and certified or attested to by the Secretary of the Buyer, authorizing Buyer to enter into this Agreement and purchase the Property.

5.10 Bonus Consideration

5.10.1 The Parties agree and acknowledge that Seller’s motivation to enter into this Agreement and the transaction contemplated hereby, and a major portion of its consideration for doing so, extends well beyond receipt of the Purchase Price. Specifically, Seller has experienced significant financial problems in the past few years and can no longer afford to provide all of the services to the residents of the City which it once could provide, and cannot add services thereto which it desires to add. As a result, revenues in addition to the Purchase Price which will flow from the performance of this Agreement, are critical to Seller and it would not have entered into this Agreement without the assurance of those additional revenues.

5.10.2 The Project will be subject to payment of the City’s transient occupancy tax (“TOT”), as such tax may be revised from time-to-time. Buyer will covenant to pay all TOT as and when due as a requirement of the Declaration of Covenants. If for any reason a change in law should make the imposition and/or collection of TOT illegal or subject to approval by election, Buyer agrees to pay an equivalent amount to Seller as a contractual payment under this Agreement without the necessity for further actions or elections.

5.11 Entitlements

As a condition for Close of Escrow, Buyer shall have obtained all necessary entitlements and permits from the City, the County of Ventura or any of its subsidiary bodies, and/or the State of California or any of its subsidiary bodies, including, without limitation, the California Coastal Commission, for the development of the Project and the operation thereof and be in a position to commence work on the Project immediately upon

Page 342 of 363 Close of Escrow. Such entitlements shall include, without limitation, the Declaration of Covenants.

Section 6. Escrow Provisions and Instructions

6.1 Escrow Agent

The Parties agree to establish an escrow (the “Escrow”), for the purposes of implementing this Agreement, with the “Escrow Agent”. The Escrow shall be opened by Seller within 15 (fifteen) business days following approval of this Agreement by the Port Hueneme City Council. Escrow shall be opened with Lawyers Title Company, 2751 Park View Court, Suite 241, Oxnard, CA 93036 (Attn: Margaret Kelley, Certified Escrow Officer, 805-484-2701 x 149, [email protected]).

6.2 Opening of Escrow

Within ten (10) business days after the Opening of Escrow as defined below, Buyer shall deposit with the Escrow Agent the initial Deposit of Fifty Thousand Dollars ($50,000.00) and one copy of the fully executed counterpart of this Agreement, which, together with Escrow Agent’s standard form instructions, shall constitute the Escrow instructions (the “Escrow Instructions”). The date of delivery to Escrow Agent of such fully executed counterpart shall be deemed the opening of escrow ("Opening of Escrow"), and Escrow Agent shall notify Buyer and Seller in writing of the Opening of Escrow date. The Escrow Agent is hereby empowered to act under this Agreement upon indicating its acceptance of this Section in writing, delivered to the Parties within five (5) calendar days after receipt of a fully executed copy of this Agreement, and shall thereafter carry out its duties as the Escrow Agent hereunder.

6.3 Additional Documents

Each Party shall deliver to the Escrow Agent, executed and acknowledged where applicable, any additional Escrow instructions or documents necessary for the conveyance of title or implementation of any other provision of this Agreement or other obligations of said Party hereunder, including, as applicable, any funds owed by that Party under this Agreement. The Parties will act in good faith to attempt to have all necessary documents, consents, approvals, or other required documents delivered to the Escrow Agent. However, in no event shall said additional Escrow instructions or other documents, increase the rights of one Party against the other Party under this Agreement or modify the terms and conditions of this Agreement.

6.4 Preliminary Title Reports

The Escrow Agent shall cause PTRs, as required under this Agreement, to be prepared and issued by Commonwealth Land Title Company. (Title Representative:

Page 343 of 363 Sara Soudani, V.P. National Sales, 888 S. Figueroa Street, Suite 2100, Los Angeles, CA 90017 Office: (800) 432-0706; Cell: (805) 766-3835; [email protected]) (Title Company) and shall provide both Buyer and Seller with copies thereof along with legible copies of all reported title exceptions, within ten (10) days of the Opening of Escrow.

6.5 Funds

All funds received in the Escrow, including without limitation the Deposit, shall be deposited by the Escrow Agent in an insured account with any state or national bank doing business in the State of California, and such funds may be combined with other escrow funds of the Escrow Agent. Such funds shall draw the highest reasonable rate of interest and such interest shall accrue to the Party of this Agreement who shall have made the deposit thereof with the Escrow Agent.

6.6 Closing Statement

Not less than five (5) business days prior to the Close of Escrow, the Escrow Agent shall provide each Party with a pro forma closing statement, showing any funds owed by or any credits to that Party, based on allocations as provided by this Agreement. The Property has been in public ownership for a number of years and there are no ad valorem property taxes which have accrued during Seller’s ownership. Apportionment of taxes will therefore not be required in this Escrow. The Escrow Agent shall provide copies of each Party’s pro forma closing statement to the other Party at the same time.

6.7 Delivery of Documents and Funds

Seller shall deliver the Grant Deed, the Declaration of Covenants and any additional documents required from Seller within five (5) business days of written demand from Escrow Agent, and Buyer shall deliver the Purchase Price and any additional funds required to close Escrow to Escrow Agent at least five (5) business days prior to the Close of Escrow, unless another time is designated in Escrow Agent’s standard escrow instructions, or a different procedure is required by Buyer’s independent third party lender.

6.8 Close of Escrow

When the Escrow Agent is in a position to close the Escrow, it shall do the following in the order listed:

(1) Record the Declaration of Covenants against the Property.

(2) Record the Grant Deed(s) from Seller to Buyer of title to the Property.

(3) Record thereafter the Deed(s) of Trust in favor of Buyer’s lender in first lien position.

Page 344 of 363 (4) Issue the final title Policy (in an ALTA form) called for under this Agreement to Buyer and the lender’s title policy to Buyer’s lender.

(5) Disburse all funds in accordance with the requirements of this Agreement, including, without limitation, paying to the Party entitled thereto any funds held by the Escrow Agent which are due to said Party, if applicable.

(6) Provide each Party with a final closing statement, and provide the other Party with a copy of said closing statement.

(7) Provide each Party with a complete set of all documents recorded with the County Recorder or returned to either Party.

(8) Do such other things as Escrow Agent deems necessary or appropriate to carry out the terms of this Agreement.

6.9 Closing Date

Escrow shall close, as evidenced by the recordation of the Grant Deed in the Official Records of Ventura County, California, as soon as the conditions to Close of Escrow have been met or waived, but in no event later than March 15, 2021 or such later date as the Parties may agree to in an express writing specifically extending said date (the “Closing Date”). It is agreed that the date for Closing Date will be automatically extended as provided in Sections 5.4.1 and/or 5.4.2, if the delay in closing is due to a delay caused in obtaining the required approval(s) from the California Coastal Commission or any other necessary entitlement.

6.10 Effect of Close of Escrow on Balance of Agreement

The Close of Escrow shall serve to terminate the obligations of the Escrow Agent hereunder, but shall not act to terminate this Agreement, which contains provisions which survive the Close of Escrow. In interpreting this Agreement, all provisions hereof shall be deemed to have survived Close of Escrow except for those which on their terms clearly were intended to terminate at Close of Escrow. All other provisions hereof shall be deemed to have survived the Close of Escrow and to continue in full force and effect.

6.11 Escrow and Sales Costs

Buyer shall pay all costs and expenses incurred in connection with closing Escrow, including, without limitation, any fees or premiums relating to obtaining the PTR or issuing the final ALTA title insurance policy, the escrow fee, recording costs and fees and any other costs or fees which might be applicable other than the City’s legal fees and staff time. The Parties mutually represent that they have not retained any broker or sales

Page 345 of 363 agent with respect to the purchase and sale of the Property, and each Party agrees to hold the other harmless from any claim by any third party claiming through said Party.

6.12 Prorations

Should any proration of any item be necessary, Escrow Agent will prorate obligations and fees on the basis of a thirty (30) day calendar month.

6.13 Possession

Seller shall deliver possession of the Property to Buyer upon the Close of Escrow unless otherwise agreed in writing by the Parties.

Section 7. Developer’s Obligations as to Property

7.1 Prohibition Against Transfer

The experience and qualifications of Buyer, and the ability of Buyer to meet Seller’s Goals, are of critical importance to Seller in entering into this Agreement. Except as otherwise provided in the Preamble, Buyer shall not transfer any interest or right under the terms of this Agreement, nor shall it transfer any interest of any kind in the Property or the Project at any time without the express written consent of Seller, which consent may not be unreasonably withheld. Any transfer of any interest in the Property or the Project which is permitted under this Agreement shall only be made to entities which have been pre-approved in writing by Seller, which approval may not be unreasonably denied. It is understood that the primary criteria which Seller shall apply to a transfer of the Project is the ability of the transferee to effectively construct, if applicable, and operate the Project in such a way as to assure the continuing payment of the revenues due to the City.

7.2 Use of the Property and/or the Project

7.2.1 During and after development and construction of the Project, Buyer shall at all times conform to the covenants contained in Exhibit “C,” the Declaration of Covenants, and said covenants will run with the land and be binding on any and all successors to Buyer.

7.2.2 Buyer is obligated, after Close of Escrow, to construct and then operate the Project as provided herein and in the Declaration of Covenants, and a failure to do so is inconsistent with Seller’s Goals and shall be a breach of this Agreement.

Section 8. Risk of Defects

8.1 Risk of Defects

Page 346 of 363 Buyer, having had the opportunity to undertake any testing or review of the Property which it deems necessary, expressly assumes the risk that the Property which is transferred to it under the terms of this Agreement may contain or have defects or conditions which might prevent the intended use of said property, or cause unexpected expense in connection with preparing the Property for the intended use.

8.2 Release

From and after the Close of Escrow, and except for (i) a breach of Seller’s representations, warranties and covenants set forth in this Agreement, (ii) the gross negligence, fraud or willful misconduct of Seller (including, without limitation, Seller’s failure to disclose to Buyer any item that materially affects the value of the Property), or (iii) Seller’s breach of this Agreement (collectively, the "Excepted Matters"), Buyer hereby releases Seller from any claim for any condition of the Property. To that end, Seller, and its officers, employees, attorneys and agents shall be held harmless for all claims, demands, causes of action, penalties, expenses and liability of whatsoever kind or nature which may arise out of, because of, concerning, or incident to the condition of the Property, including all court actions, costs and expenses and attorneys’ fees (collectively, the “Damages”) relative to being made a party in any action, suit, arbitration or mediation initiated by Buyer, its officers, employees, attorneys, agents, lenders or any other entity seeking Damages, including any person or entity to whom the Property or any part thereof is conveyed by Buyer.

Section 9. Seller’s Representations

9.1 Environmental Conditions

Based upon the actual knowledge of Don Villafana, Public Works Director, after reasonable inquiry, Seller represents that it has no knowledge of an existing adverse environmental condition on the Property requiring remediation and the Public Works Director represents that he is not aware of a Phase I environmental assessment having been conducted on the Property, after inquiry and investigation. Seller represents and warrants that Don Villafana is the person most knowledgeable regarding the Property. Seller represents that the Phase I environmental assessment to be conducted by Buyer is essential and legally required, and Buyer’s remediation of any conditions found is necessary, together with compliance with any other applicable provision of the California Environmental Quality Act.

9.2 Role of City

Buyer acknowledges and agrees that Seller is participating in the transaction which is the subject of this Agreement both as the owner and seller of the Property and as the City. The City, in the normal course of its business functions, will

Page 347 of 363 deal with a variety administrative matters and discretionary approvals related to the Property and/or the Project. Nothing contained herein shall constitute an agreement by the City, nor an assumption by the Buyer, that the City will in fact approve any matter or determination which comes before it, that any procedures employed by the City will be omitted or modified for the benefit of Buyer, or that any discretionary approval will be approved, or approved on any particular set of conditions. The City is obligated to perform its functions and to do so in a manner consistent with the law. Any decision made by the City in carrying out the normal procedures and processes pertaining to a project of the type and nature of the Project, or with regard to the use of the Property, will be made on the criteria, record or evidence on which such procedures and processes are normally determined, without reference to this Agreement or any of the agreements or documents executed and agreed upon by the Parties or issued by the City which related to the purposes of this Agreement, including, without limitation, the Declaration of Covenants, the Conditional Use Permit (if any), construction or development permits, and/or the exhibits to this Agreement or any of the other documents referenced in this provision (collectively, the “Related Agreements”). Any actions taken by the City which is in accordance with the applicable state or federal law, or City ordinance, shall not constitute a ground for a breach of any of the Related Agreements.

Section 10. Defaults

10.1 Default and Notice of Default

10.1.1 A default under the terms of this Agreement occurs when: (i) an action required herein is not performed within the time frame provided and non- performance thereof is not excused or waived by the other Party; (ii) the Closing Date does not occur by the date required, unless the Closing Date is extended by the mutual written agreement of the Parties or as otherwise provided in Section 6.9; or (iii) upon the occurrence of any other default of this Agreement, the Escrow Instructions or other obligation of a Party to the other Party.

10.1.2 Notice of the default (or defaults) shall be given by the non- defaulting Party to the defaulting Party in the manner provided in this Agreement, specifying the exact default or defaults and the actions necessary to cure the default, and requiring the default(s) to be cured within the time provided in the Agreement, or if no specific time is indicated for performance of the item then within ten (10) days of receipt of the notice of default, except as otherwise provided in Section 10.2.2.

10.2 Curing Default; Breach of Agreement

10.2.1 Any Party which fails to cure a default or defaults within the ten (10) day period, or longer period if applicable, specified in any notice of default shall be

Page 348 of 363 deemed to be in material breach of this Agreement, unless the period for cure is extended as provided herein below.

10.2.2 lf the cure of a default on which a notice of default has been served reasonably requires longer than the time provided for in the notice, the defaulting Party may so advise the non-defaulting Party and indicate the amount of time reasonably necessary to cure the default, which time cannot exceed thirty (30) days. If the non- defaulting Party reasonably feels the extended time is excessive, it may set such shorter time as is reasonable under the circumstances and the defaulting Party shall cure the default within said time.

10.2.3 A breach of this Agreement shall occur upon the expiration of the notice period or extended notice period without a cure of the stated breach(s). Further extensions of time to cure may be granted at the sole discretion of the non-defaulting Party.

10.2.4 The Parties hereto acknowledge that they have or will be entering into the Related Documents. In order to provide for an orderly and comprehensive resolution of breaches, the Parties hereto agree that a breach of any one of the Related Agreements, at the sole option of the non-defaulting Party, is a breach of all of the Related Agreements and of this Agreement, and a breach of this Agreement is a breach of each and every one of the Related Agreements. The Related Agreements include, without limitation, the Grant Deed and the Declaration of Covenants.

10.3 Remedies for Breach

10.3.1 Seller’s Remedies: Liquidated Damages. IF BUYER DEFAULTS UNDER THIS AGREEMENT (AFTER THE EXPIRATION OF ALL NOTICE AND CURE PERIODS) BY FAILING TO CLOSE ESCROW ACCORDING TO THE TERMS OF THIS AGREEMENT, THE PARTIES AGREE THAT SELLER SHALL BE RELEASED FROM SELLER'S OBLIGATION TO SELL THE PROPERTY TO BUYER. IN SUCH EVENT, SELLER SHALL RETAIN THE DEPOSITS THAT HAVE BEEN PAID BY BUYER AS LIQUIDATED DAMAGES, WHICH THE PARTIES AGREE IS A REASONABLE SUM CONSIDERING ALL THE CIRCUMSTANCES EXISTING ON THE AGREEMENT DATE, INCLUDING THE DIFFICULTY OR IMPRACTICALITY OF DETERMINING THE ACTUAL DAMAGES TO SELLER. SUCH LIQUIDATED DAMAGES SHALL BE SELLER'S EXCLUSIVE REMEDY FOR SUCH DEFAULT, AND SELLER SHALL ACCEPT SAID LIQUIDATED DAMAGES IN PLACE OF ANY OTHER RIGHTS OR REMEDIES IT MAY HAVE AGAINST BUYER INCLUDING, BUT NOT LIMITED TO, ANY RIGHT TO SPECIFIC PERFORMANCE OR TO RECOVER DAMAGES. SELLER'S RETENTION OF THE DEPOSITS AND OTHER AMOUNTS NOTED ABOVE AS LIQUIDATED DAMAGES HEREUNDER IS NOT INTENDED AS A FORFEITURE OR

Page 349 of 363 PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CIVIL CODE SECTIONS 1671, 1676 AND 1677. SELLER HEREBY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 3389.

Seller's Initials______Buyer's Initials_HLC______.

10.3.2 Buyer’s Remedies. If Seller is in default of its obligations under this Agreement prior to the Close of Escrow, and Seller fails to cure such default within the applicable notice and cure period as provided in this Section 10, then Buyer may terminate this Agreement, whereupon all Deposits shall be returned to Buyer (including any amounts released to Seller), or Buyer may initiate an action for specific performance compelling Seller to perform its obligations under this Agreement, including, without limitation, conveying the Property to Buyer in the condition required under this Agreement.

10.3.3 Post-Close Remedies. Notwithstanding any language in this Agreement to the contrary, it is agreed that if Buyer fails to commence construction of the Project, within ninety (90) days after the Close of Escrow, or fails to diligently pursue completion of the Project to Certificates of Occupancy, or fails to operate the Project so as to generate the revenues which are a critical part of Seller’s Goals (collectively, the “Events”), Seller may bring an action to rescind the sale of the Property, and the Parties agree that proof of any Event shall be sufficient grounds for a judgment of rescission, on such terms as the Court may order. Notwithstanding the foregoing, all Events shall be subject to Force Majeure as set forth in Section 14.9 and any such extensions rights shall apply.

10.4 Asserting Rights and Remedies

Any failure or delays by any Party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies. Delays by any Party in asserting any of its rights and remedies shall not deprive said Party of its right to any of such remedies.

Section 11. Notice Provisions

11.1 Giving Notice

Any and all notices, demands or communications submitted by either Party to the other Party pursuant to or as required by this Agreement shall be proper if in writing and dispatched by messenger for immediate personal delivery, or by a nationally known overnight service (e.g. Federal Express) or by registered or certified United States mail, postage prepaid, return receipt requested, to the location designated below. Such written notices, demands and communications may be sent in the same manner to such other

Page 350 of 363 addresses as either Party may from time to time designate as provided in this Section. Any such notice, demand or communication shall be deemed to be received by the addressee, regardless of whether or when any return receipt is received by the sender or the date set forth on such return receipt, on the day that it is dispatched by messenger for immediate personal delivery, on the day following dispatch by overnight service or two (2) calendar days after it is placed in the United States mail as heretofore provided.

11.2 Where to Give Notice

All notices, demands or communications to a Party shall be sent to:

To Buyer: Harvey Champlin, Managing Member Harvey Champlin Associates, LLC P.O. Box 25400 Ventura, California 93002-2276

With a copy to: Jackson Tidus 2030 Main Street, 12th Floor Irvine, California 92614 Attn: Greg Regier, Esq. or Spring Robinson, Esq.

To Seller: City Manager City of Port Hueneme 250 Ventura Road Port Hueneme, Ca 93041

With a copy to: Green de Bortnowsky, LLP 23801 Calabasas Rd., Ste. 1015 Calabasas, CA 91302 Attn: Charles R. Green

Section 12. Indemnification; Release

12.1 Indemnification for Due Diligence Investigations

Buyer shall indemnify and hold Seller harmless from any and all liabilities, claims, and damages that Seller may incur to the extent caused by the negligent acts or omissions of Buyer and/or Buyer's agents in furtherance of any investigations on the Property during Buyer’s Due Diligence Period, except to the extent caused by the negligence or willful misconduct of Seller. This indemnification shall survive the termination for any reason of this Agreement for a period of two (2) years.

Page 351 of 363 12.2 Indemnification Following Close of Escrow. From and after the Close of Escrow, the Parties each agree to indemnify and hold the other Party, and its elected officials, members, shareholders, equity owners, officers, employees, agents, and attorneys harmless from and against all actions, claims, damages, judgments, orders, rulings, costs, expenses and fees brought by third parties (collectively, the “Claims”) arising from or related to any act or omission of the Party who failed to perform or committed the act, in connection with the performance or non-performance of this Agreement. This indemnification shall survive until the completion of the Project.

Section 13. Termination of Agreement

A non-defaulting Party shall have the right to terminate its obligations under this Agreement if the other Party breaches this Agreement or any of its exhibits, after notice thereof given in accordance with the notice requirements set forth in this Agreement pertaining to that default, and an opportunity to cure as provided in this Agreement. Termination of this Agreement does not terminate any Parties’ rights against the other Party for a material breach of this Agreement, or any rights to indemnification. Termination of this Agreement is not an election of remedies as to the remedy provisions of this Agreement or of the Related Agreements.

Section 14. Miscellaneous Provisions

14.1 Termination Discretion

Any action taken by a Party, including, but not limited to, the termination of this Agreement under the provisions hereof, shall be at the sole option of said Party and in its sole and absolute discretion, unless a different standard is otherwise specifically indicated. Each Party acknowledges that the other Party would not have entered into this Agreement in the absence of these covenants.

14.2 Additional Documents

The Parties each agree to execute any additional forms, notices, applications or other documents which are reasonably necessary to carry out the intent of this Agreement or which become necessary by changes in circumstances and/or the passage of time, and/or errors in form or content.

14.3 Severability

The Parties agree that, should any provision, section, paragraph, sentence or word of this Agreement be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of legislation, the remaining provisions,

Page 352 of 363 sections, paragraphs, sentences and words of this Agreement shall remain in full force and effect and the Parties agree in good faith to immediately amend this Agreement in such a way as to provide Auxiliary provisions, sections, paragraphs, sentences or words as to carry out the intent of this Agreement.

14.4 Venue

Any legal action must be instituted in the Superior Court of the County of Ventura, State of California, in any other appropriate court in that County, or in the Federal District Court in the Central District of California.

14.5 Governing Law

The laws of the State of California shall govern the interpretation and enforcement of this Agreement.

14.6 Cumulative Remedies

Except with respect to any rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by any Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by any defaulting Party. A waiver of a requirement shall not constitute an ongoing waiver of that requirement in the future. Any waiver of a right must be in writing to be enforceable.

14.7. No Consideration to any Third Party

Each of the Parties warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section, shall not include persons to whom fees are paid for professional services if rendered by attorneys, financial or other consultants, accountants, engineers, architects and the like when such fees are considered necessary by the Party. For the purposes of this paragraph, third parties shall include any elected official, officer, employee or agent of the City. This warranty includes each Party’s assurance that it has not employed any licensed real estate broker or salesperson, or other person, licensed or unlicensed, to whom a commission or other form of compensation is due.

14.8 No Personal Liability

No member, officer, employee, agent or attorney of Buyer, Seller and/or City shall be personally liable to the any other Party, its members or principals, or any successor in interest, or any other party or person whatsoever, in the event of any default

Page 353 of 363 or breach by said Party for any amount which may become due to another Party or to its successors, or on any obligations under the terms of this Agreement, except for gross negligence or willful acts of such member, officer, employee or attorney, unless said person has entered into an express written agreement to be liable.

14.9 Force Majeure

In addition to specific provisions of this Agreement, performance by either Party hereunder shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of public enemy; epidemics; quarantine restrictions; freight embargoes or lack of transportation; weather-caused delays; inability to secure necessary labor, materials or tools; acts of the other Party other than as permitted or required by the terms of this Agreement; acts or failure to act of any public or governmental agency or entity, other than the City, unless such action or failure to act is the result of a lawsuit or injunction, or any other causes beyond the control or without the fault of the Party claiming an extension of time to perform. Any extension of time for any such cause hereunder shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the Party claiming such extension is sent to the other Party within thirty (30) calendar days of the commencement of the cause. Timely notice as provided in this paragraph is essential to any claim of force majeure. Notwithstanding any language to the contrary, the Party claiming the extension shall not have more than thirty (30) business days after the period of the enforced delay to complete its required acts, unless the delay is one covered under Sections 5.4.1 and/or 5.4.2, or is due to a delay caused in obtaining the required approval(s) from the California Coastal Commission or any other necessary entitlement, provided only that Buyer has and continues to act diligently in seeking such approval(s). Times of performance under this Agreement may also be extended by mutual agreement in writing by and between the Parties.

14.10 Amendments by City Manager

The City Manager of Seller is authorized to sign on his or her own authority amendments to this Agreement which are of routine or technical nature, including amendments extending time deadlines where a possible extension thereof is contemplated.

14.11 Independent Legal Advice/Interpretation of Agreement

Each Party represents and warrants the following: that it has carefully read this Agreement, and in signing this Agreement and agreeing to be bound by the same, it has received independent legal advice from legal counsel as to the matters set forth in this Agreement, or has knowingly chosen not to consult legal counsel as to the matters

Page 354 of 363 set forth in this Agreement, and it has freely signed this Agreement and agreed to be bound by it without any reliance upon any agreement, promise, statement or representation by or on behalf of the other Party, or its officers, agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise. This Agreement shall be interpreted as though prepared jointly and severally by both of the Parties.

14.12 Costs and Attorneys’ Fees

In the event that any Party hereto institutes an action or proceeding for a declaration of the rights of the Parties under this Agreement, for injunctive relief, for an alleged breach or default of, or any other action arising out of this Agreement or the transactions contemplated hereby, or in the event any Party is in default of its obligations pursuant thereto, whether or not suit is filed or prosecuted to final judgment, the non- defaulting party or prevailing Party shall be entitled to its actual attorneys’ fees and to any court costs incurred, in addition to any other damages or relief awarded, including those incurred in connection with (a) an assertion of any affirmative defense in connection with such action, (b) any appellate review of the judgment rendered in such action or of any other ruling in such action, or (c) any proceeding to enforce a judgment in such action.

14.13 Successors

This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted heirs, executors, administrators, legal representatives, successors and assigns.

14.14 Time Frames

Unless otherwise indicated with respect to a requirement, all time frames for performance of an act required or permitted by this Agreement shall be calendar days. Time frames measured in months shall be calculated with reference to the actual number of days in the relevant months. Annual time frames shall mean a period of 365 days.

14.15 Counterparts

This Agreement shall be executed in four (4) duplicate originals each of which is deemed to be an original. This Agreement constitutes the entire understanding and agreement of the Parties. The Parties may sign this Agreement in counterparts. Faxed or electronically submitted signature pages shall bind a Party as if the other Party had received original signatures.

14.16 Integration

Page 355 of 363 This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the Parties with respect to all or any part of the subject matter hereof.

14.17 Waivers; Amendments

All waivers of the provisions of this Agreement and all amendments hereto must be in writing and signed by the appropriate representatives of the Party making the waiver. All approvals, waivers or amendments by Seller shall require the advance approval of the City Council of the City, except as set forth in Section 14.10.

14.18 Headings

Titles or headings of sections, paragraphs or provisions of this Agreement are provided as an aid and are to be considered part of the Agreement itself.

14.19 Effective Date

The “Effective Date” of this Agreement is the date upon which it has both been approved by the City Council of City and the governing body of Buyer, and executed by authorized representatives of each of the Parties set forth below, whichever occurs later.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

Page 356 of 363 WHEREFORE, the Parties, intending to be bound hereby, have affixed their authorized signatures to this Purchase and Sale Agreement with Escrow Instructions (Hotel / Office Tower).

SELLER: BUYER:

CITY OF PORT HUENEME HARVEY CHAMPLIN ASSOCIATES, A municipal corporation a California Limited Liability Company

By: ______By: ______Mayor: Sylvia Munoz Schnopp Name Harvey L. Champlin Title: Managing Member

Date: ______, 2018 Date: May 11, 2018

Attest: Approved as to form:

______Michele Kostenuik Buyer’s Attorney City Clerk

Approved as to form: Approved as to content:

GREEN de BORTNOWSKY, LLP

______Charles R. Green Rod Butler City Attorney City Manager

PHNE/0005-2/DOC/007-16(5-9-18)

Page 357 of 363 EXHIBIT “A” TO PURCHASE AND SALE AGREEMENT

SITE PLAN AND PROPERTY LEGAL DESCRIPTION

Page 358 of 363

EXHIBIT “B” TO PURCHASE AND SALE AGREEMENT

GRANT DEED

Page 359 of 363 EXHIBIT “C” TO PURCHASE AND SALE AGREEMENT

DECLARATION OF COVENANTS

Page 360 of 363 EXHIBIT “D” TO PURCHASE AND SALE AGREEMENT

DUE DILIGENCE ITEMS

(a) Conceptual Site Plan, Building Elevation and Development Program

(b) Phase I and, if required, Phase II environmental reports.

(d) Seismic safety investigation

(e) Water and sewer capacity and availability.

(f) Flood hazard study.

(g) Pre-application review by the City to identify any other planning and development issues and concerns.

(h) Market demand study

(i) Parking demand study

Page 361 of 363

Page 362 of 363

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