AVALON CITY COUNCIL MEETING
TUESDAY, AUGUST 6, 2024 -4:30 PM
410 AVALON CANYON ROAD
AGENDA
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (310) 510-0220. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-
35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the publicinspection at the time the records are distributed to all, or a majority of all, members of the City Council. Such records shall be available at City Hall located at 410 Avalon Canyon Rd.
For the public’s convenience, but not participation, the meeting can be viewed:
On local cable: Catalina Broadband Solutions channel 3
Streaming on Facebook Live: www.facebook.com/CityOfAvalonOfficial Streaming on YouTube: https://www.youtube.com/CityofAvalonCA
CALL TO ORDER I PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALLGENERAL BUSINESS
1. Avalon City Council Policies Manual Review
The Avalon City Council Policies Manual serves as a resource for Council Members, Department Heads, City Staff and members of the public in determining the manner in which matters of the City business is conducted. As a part of best its best practices, the City intended to review the manual each election cycle.
Recommended ActionReview the Avalon City Council Poilcies Manual, including proposed amendments and provide any input on revisions.
ANNOUNCEMENTS I WRITTEN COMMUNICATIONS
DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT I CITY ATTORNEY REPORTCOUNCILMEMBER REPORTS I MAYOR REPORT
ORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken on nonagenda items at this meeting. Speakers should limit comments to two (2) minutes each.
CONSENT CALENDAR2. City Council Minutes
Although the live recording is the official record of public meetings, minutes are preparedfor the Council’s approval.
Recommended Action
Approve minutes from the July 2, 2024 regular City Council Meeting.
CITY COUNCIL AGENDA
AUGUST 6, 2024
PAGE 2
3. Warrants
Expenditures Submitted for Approval
o Warrants from the General Fund in the amount of $842,983.29o Two payrolls totaling $566,563.53. o Four electronic fund transfers totaling $1,155,789.96.
Recommended Action
Approve total expenditures for July 8, 2024 through July 26, 2024 totaling $2,565,336.78.
4. Fiscal Year 2023-2024 Fourth Quarter Treasurer’s Report State and Municipal Codes require the Treasurer to submit within 30 days following each fiscal quarter a report summarizing the City’s cash and investment balances. Attached is the Fourth Quarter Treasurer’s Report for FY23-24.
Recommended Action
Adopt the resolution accepting the FY23-24 Fourth Quarter Treasurer’s Report.
5. Declare Surplus Equipment
Historically, the City Council is presented with a list of items that are surplus, the Council formally declares the items as surplus, and then the declared items are sold via Public Surplus, donated to charity, or disposed of properly.
Recommended Action
Adopt a resolution declaring equipment listed in the resolution as surplus property and authorize the City Manager to dispose of it in accordance with City policy.
6. Buffalo Nickel Transportation Permit Renewal
According to the Avalon Municipal Code, initial Transportation Permits are valid for a period of three years and may be renewed for subsequent three-year periods. Buffalo Nickel’s renewal request includes a change in pick-up/drop-off location to the passenger loading zone at 107 Pebbly Beach Road (originally in front of the Trailhead).
Recommended Action
Approve the renewal of a Transportation Permit for Buffalo Nickel with stated conditions.
GENERAL BUSINESS (CONTINUED)7. Contract Award to Olyns, Inc. for Reverse Vending Machine City of Avalon is committed to enhancing its waste diversion and recycling efforts to promote sustainability and environmental stewardship. To support these goals, City staffissued a Request for Proposal (RFP) for the procurement of a reverse vending machine.
The RFP process included issuing a public notice, receiving proposals, and evaluating them through a panel review and presentation process.
Recommended Action
Award a contract to Olyns Inc. for procurement of (1) reverse vending machine (RVM), including software, maintenance, and advertising services, in an amount not-to-exceed $35,000; and, authorize the City Manager to execute the contract and any relateddocuments.
CITY COUNCIL AGENDA
AUGUST 6, 2024
PAGE 3
8. Island Enterprises, Inc. Transportation Permit Application On July 10, 2024 Island Enterprises, Inc. (DBA Catalina Adventure Tours) submitted a Transportation Permit application and fee to the City to provide interior tours with pick up/drop-off at the Cabrillo Mole Ferry Terminal. Tours will follow the “Inside Adventure Tour” route shown in the map submitted (currently conducted by the 2006 Econoline Van).
Recommended Action
1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Island Enterprises, Inc. to utilize a commercial vehicle permit to conduct toursin an oversized vehicle with stated conditions.
9. Contract Award to Public Sector Personnel Consultants for Total Compensation Study The City last completed a compensation study in 2015 as part of an overall classification survey and compensation study. Council approved funding for a market study to be completed in FY24/25. On April 16, 2024, Council authorized City staff to publish a request for proposal seeking consultation services to conduct a “Classification and Compensation Study”.
Recommended Action
Award a contract to Public Sector Personnel Consultants to complete a Total Compensation Study and provide on-call consulting services, in an amount not-to-exceed $45,000; and, authorize the City Manager to execute the contract and any related documents.
10. Crescent Hillside Stabilization Contractor Procurement In 2023, a landslide began to develop below the Crescent Avenue Stairway.
Approximately 100 cubic yards of earthen material below the wall rotated and slipped approximately six feet in elevation. In May 2023 the City Council declared a state of emergency and authorized the City Manager to negotiate and award a construction contract for a not to exceed $300,000 to stabilize the hillside.
Recommended Action
1. Make a finding that emergency measures must continue to be implemented to protect from economic loss of both City property and the adjoining private property, as well as reduce the hazardous conditions from a landslide below the Crescent Avenue Stairway.
2. Authorize the City Manager or his designee to negotiate additional work to repair the Crescent Avenue Hillside/Stairway for a not to exceed $600,000. 3. Amend the FY 2024- 25 Budget by increasing account 10550-6547, CIP Project #205002, by $358,977 for a total project sum of $875,000.
11. Medical Cannabis Delivery Service Business Permit Termination and Revocation Appeal and New Application Solicitation
In 2018 the City Council adopted a resolution of intent to award its first Medical Cannabis Delivery Business Service Permit to CJMH Group, Inc. dba Catalina Connect.
Recommended Action
1. Affirm, the City Manager’s decision to terminate a permit to provide medical cannabis delivery business services from CJMH Group Inc. dba Catalina Connect. 2. Authorize the entity, CJMH Group, mc, and/or owners, Steven Brereton or Carl Johnson to apply for a future City of Avalon Medical Cannabis Delivery Business permit without prejudice.
CITY COUNCIL AGENDA
AUGUST 6, 2024
PAGE 4
3. Authorize the City Manager to refund an appeal fee submitted on behalf of Carl Johnson regarding the revocation of CJMH Group, Inc.’s permit. 4. Authorize City Staff toopen the application process for a new medical cannabis delivery business permit holder.
12. Extension of Moratorium on the Issuance of Transient Rental Licenses for Transient Rental Use to New Applicants
On August 1, 2023, the City Council voted unanimously to establish, by urgency ordinance, a moratorium on the issuance of any new Transient Rental Licenses not filed prior to August 1, 2023. The City Council wishes to consider further regulation, consistent with its adopted LCP and General Plan, on how to properly and fairly address any proliferation of transient rentals within the City while recognizing the significant need for the public to have recreational access to the coast.
Recommended Action
Approve by four-fifths City Council vote an ordinance extending the moratorium on the issuance of Transient Rental Licenses for transient rental use to new applicants to July30, 2025.
ADJOURN
NOTICE OF POSTING
I, Devin Elise Hart, declare that the City Council Agenda for Tuesday, August 6, 2024 was posted on Friday, August 2, 2024 on the City’s website www.cityofavalon.com/agendacenter, and atCity Hall, 410 Avalon Canyon Road.
Devin Elise Hart, Management Analyst
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: I
ORIGINATING DEP: Administration CITY MANAGER: f)L&.
PREPARED BY: Scott Campbell, City Attorney
SUBJECT: Avalon City Council Policies Manual ReviewRECOMMENDED ACTION(S): Review the Avalon City Council Policies Manual, including proposed amendments and provide any input on revisions.
REPORT SUMMARY: In 2014, at the request of a City Council Member, City Staff developed a policies manual to serve as a reference for Council Members regarding duties and responsibilities of elected and appointed officials of the City of Avalon.
The Avalon City Council Policies Manual serves as a resource for Council Members, Department Heads, City Staff and members of the public in determining the manner in which matters of the City business is conducted.
As a part of best its best practices, the City intended to review the manual each election cycle.
However, due in part to timing of the 2020 General Municipal Election and the COVID-19 pandemic, the manual has not been reviewed or updated by City Council since 2018.
The ultimate goal of this process is to understand the guidelines of appropriate operating procedures and policies.GOAL ALIGNMENT: Not applicable.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Avalon City Council and community may not be familiar with the City Council operating procedures and policies.
FOLLOW UP ACTION: None.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS: City of Avalon Council Policies Manual:
City of Ava Ion
Coun cii Policy
Manual
65059.00000\42476694.2
Revision Date 8/05/2014
CITY OF AVALON
COUNCIL POLICIES
TABLE OF CONTENTS
1.0 PURPOSE OF COUNCIL POLICIES
1.1 Intent1 .2 Authority
2.0 BASIS OF AUTHORITY
2.1 Basis of Authority
2.2 Attendance at Meetings2.3 Mayor
2.4 Members of the City Council2.5 Election of Mayor Pro Tern
2.6 Oath of Office2.7 Membership in Associations
3.0 CITY COUNCIL MEETING POLICIES, CITY COUNCIL COMMITTEE,
WORKSHOP AND REGULAR MEETING, MEETING AGENDAS AND
MINUTES
3.1 City Council Meeting Place3.2 Regular City Council Meetings3.3 Council Workshops3.4 Non-Emergency Special Council Meetings3.5 Emergency Special Meetings3.6 Adjourned Meetings3.7 Public Notification of Meetings3.8 Council Meeting Agendas
3.9 Council Meeting Minutes3.10 Council Meeting Conduct 65059.00000\42476694.2
Revision Date 8/05/2014
CITY OF AVALON
COUNCIL POLICIES
TABLE OF CONTENTS
4.0 COUNCIL MEMBER COMPENSATION AND RULES AND
REGULATIONS REGARDING PAYMENT OF COMPENSATION ANDEXPENSE REIMBURSEMENT
4.1 Purpose4.2 Council Member Compensation and Reimbursement of Actual and Necessary Expenses
4.3 Authorized Meetings for Which Reimbursement of Actual and Necessary Expenses is Allowed
4.4 Authorization for Attendance at Additional Meetings4.5 Meeting Attendance Reports.4.6 Meeting and Conference Expense
5.0 COMMUNICATION ROLES OF CITY COUNCIL AND CITY STAFF
5.1 General5.2 Priorities and Commitment5.3 Procedures5.4 Council and Staff Relationships
6.0 COUNCIL ACTIONS AND DECISIONS
6.1 Possible Actions
6.2 Abstentions Methods for Taking Action6.3 Informal Action
7.0 RULES OF ORDER FOR COUNCIL AND COMMITTEE MEETINGS
7.1 General7.2 Obtaining the Floor7.3 Motions7.4 Decorum7.5 Amendment of Rules of Order 65059.00000\42476694.2
Revision Date 8/05/2014
CITY OF AVALON
COUNCIL POLICIES
TABLE OF CONTENTS
8.0 TRAINING, EDUCATION AND CONFERENCES
8.1 General8.2 Policy8.3 Approval8.4 Reimbursement8.5 Reporting 6505900000 42476694.2
1.1.1 It is the intent of the City Council of the City of Avalon to maintain a Policies Manual. Contained therein shall be a comprehensive listing of the Council’s current policies, being the rules and regulations enacted by the Council from time to time. The Policies Manual will serve as a resource for Council, staff and members of the public in determining the manner in which some matters of City business are to be conducted.
1.1.2 This Policies Manual constitutes a compilation of current policies of the City and shall not be deemed to alter the effective date or application of such policies. Any policies newly adopted as a result of adoption of this Policies Manual shall be specifically identified as such by separate Council action prior to adoption of this Policies Manual.
1.2 Authority
1.2.1 If any policy or portion of a policy contained within the Policies Manual is in conflict with State or Federal law, rules or regulations having authority over the City of Avalon, said State or Federal law,rules or regulations shall prevail.
1.1 Intent
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2.1.1 The City Council is the unit of authority for establishing policy within the City. Apart from their normal function as a part of this unit, Council Members have no individual authority. As individuals, Council Members may not commit the City to any policy, act or expenditure.
2.1.2 Council Members do not represent any fractional segment of the community within which the City is located, but are, rather, a part of the body, which represents and acts for the community as a whole.
Council Members must act for the good of the entire community and not for their personal interests or agendas.
2.2 Attendance at Meetings
2.2.1 Members of the City Council shall make every effort to attend all regular and special meetings of the Council unless there is good cause for absence.
22.2 A vacancy shall occur if any member ceases to discharge the duty of his/her office for the period of three (3) consecutive months except as authorized by the City Council and except as otherwise provided by California law.
2.3 Mayor
2.3.1 The Mayor shall serve as Presiding Officer at all Council meetings only. Other than the ability to appoint members to the PlanningCommission, which appointments are subject to City Councilapproval, he/she shall have the same rights as the other membersof the Council with voting, introducing motions, resolutions andordinances, and any discussion of questions that follow said actions.
2.3.2 In the absence of the Mayor, the Mayor Pro Tern shall serve as Presiding Officer over all meetings of the Council. If the Mayor andMayor Pro Tern are both absent, the remaining members present
2.1 Basis of Authority
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shall select one of themselves to act as the presiding officer for that particular meeting.
2.4 Members of the City Council
2.4.1 Council Members shall thoroughly prepare themselves to discuss agenda items at meetings of the City Council. Information may be requested from staff or exchanged between Council Members beforemeetings, except as may otherwise be limited or prohibited byCalifornia law including, but not limited to, the requirements of theRalph M. Brown Act/Open Meeting law.
2.4.2 Information that is exchanged before meetings shall be distributed through the City Manager, and all Council Members will receive all information being distributed. Distribution of information may belimited by time and notice restrictions under the Ralph M. Brown Act/Open Meeting law.
2.4.3 Council Members shall at all times conduct themselves with courtesy to each other, to staff and to members of the audience-public present at Council meetings.
2.4.4 Council Members shall defer to the Mayor for conduct of meetings of the Council, but shall be free to question and discuss items on the agenda. All comments should be brief and confined to the matter being discussed by the Council.
2.4.5 Council Members shall abstain from participating in consideration on any item involving a conflict of interest as set forth in the applicable provisions of California law. Unless such a conflict of interest exists,however, Council Members should not abstain from the Council’s decision-making responsibilities.
2.4.6 Requests by individual Council Members for substantive information and/or research from City staff or the City Attorney will be channeled through the City Manager.
2.5 Election of Mayor Pro Tern
At the first regularly scheduled City Council meeting in April following the regular election, the City Council shall elect a Mayor Pro Tern who shall serve a two year term.
2.6 Oath of Office
Council Members who are elected at a regular election shall take office at the firstregularly scheduled City Council meeting in April following their regular election upon administering of the oath of office. Council Members not elected at a regular Council Policies Manual Section 2.0 Page 2 of 3
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election shall be administered the oath of office in pccordinpnccaccordance with the provisions of the law. Generally the oath of office will be administered at the next regular Council meeting.
2.7 Membership in Associations
The Council Members are encouraged to ordinarily hold membership in and attend meetings of such national, state, and local associations as may exist which have applicability to the functions of the City, and shall look upon such memberships asan opportunity for in-service training.
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3.1.1 All City Council meetings will be held at the Avalon City Hall Council Chambers located at 410 Avalon Canyon Road, Avalon California, unless otherwise noticed.
3.2 Regular City Council Meetings
3.2.1 Regular City Council meetings will be held on the first and third Tuesday of each calendar month, with open session beginning at65:00 p.m. If a closed session is to be held at the meeting, it will begenerally held at the beginning or the end of the regular meeting.
However, with consideration for parties critical to be in attendance at the closed session, the closed session may be scheduled at any time during the regular meeting as noticed pursuant to the Ralph M.
Brown Act nd Resolution No. 2012 12. All discussions, actions andinformation provided in closed sessions are confidential, and shallremain so unless the City Council votes to disclose closed sessionmatters or if disclosure of actions is required by The Ralph M. Brown Act.
3.2.2 Regular City Council meetings will be held to conduct regular Council business. Items requiring Council action will be considered at thesemeetings. The City Manager and Department Heads may presentreports as needed and/or as requested by the City Council.
3.3 Council Workshops
3.3.1 Council workshops will be held on an as needed basis and shall be noticed pursuant to the requirements of The Ralph M. Brown Act.
3.1 City Council Meeting Place
Council Policies Manual Section 3.0
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3.4 Non-Emergency Special Council Meetings
3.4.1 Non-emergency Emergency Special Council mMeetings may be called by the City Manager or by a majority of the Council inaccordance with the Ralph M. Brown Act.
3.4.2 All Council Members, the City Manager, pertinent Department Heads, the City Attorney and the City Clerk will be notified of the Special Council Meeting and the purpose for which it is called.
Notification shall be in writing, at least twenty-four (24) hours prior to the meeting and any Special Council Meeting shall be noticed and conducted in accordance with the Ralph M. Brown Act.
3.4.3 Newspapers of general circulation in the City, organizations, and property owners who have requested notice of special meetings in accordance with the Ralph M. Brown Act (California GovernmentCode §54950 through §54926) shall receive written notice inaccordance with the Ralph M. Brown Act. The City Clerk will attempt to provide electronic notification to entities requesting such notification but such notification is not guaranteed nor will it replace written notification.
3.4.4 An agenda shall be prepared as specified for regular Gcouncil meetings in Section 3.8 herein, and shall be delivered with the notice of the special meeting to those specified above.
3.4.5 Only those items of business listed in the call for the special meeting shall be considered by the Council at any sspecial Council meeting.
3.5 Emergency Special Meetings
3.5.1 In the event of an emergency involving matters upon which prompt action is necessary due to the disruption or threatened disruption ofpublic facilities, the City Council may hold an emergency specialmeeting without complying with the twenty-four (24) hour noticerequired in Section 3.4.2, above. An emergency means a cripplingdisaster, which severely impairs public health, safety, or both, asdetermined by a majority of the members of the Council or work stoppage or other activity, which severely impairs public health,safety, or both, as determined by a majority of the members of the Council.
3.5.2 Newspapers of general circulation in the City, radio stations and television stations which have requested notice of special meetings in accordance with the Ralph M. Brown Act (California GovernmentCode §54950 through §54926) shall be notified by at least one (1) hour prior to the emergency special meeting. In the event that telephone services are not functioning, the notice requirement of one Council Policies Manual Section 3.0 Page 2 of 8
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hour is waived, but the City Manager, or his/her designee, shall notify such newspapers, radio stations, or television stations of the fact of the holding of the emergency special meeting, and of any actiontaken by the Council, as soon after the meeting as possible.
3.5.3 No closed session may be held during an emergency special meeting, and all other rules governing special meetings shall be observed with the exception of the twenty-four (24) hour notice. The minutes of the emergency special meeting, a list of persons the CityManager or designee notified or attempted to notify, a copy of the roll call vote(s), and any actions taken at such meeting shall be posted fora minimum often (10) days in a public place at City Hall as soon after the meeting as possible.
3.6 Adjourned Meetings
A majority vote by the City Council may terminate any Council meeting at any place in the agenda to any time and place specified in the order of adjournment and less than a quorum may so adjourn a meeting for lack of a quorum, except that if no Council Members are present at any regular or adjourned regular meeting, the City Manager may declare the meeting adjourned to a stated time and place, andhe/she shall cause a written notice of adjournment to be given as required by TheRalph M. Brown Act.
3.7 Public Notification of Meetings
3.7.1 Agendas for upcoming City Council Meetings shall be posted in accordance with the provisions of Section 3.8.4 and 3.8.4 below and3.5.1 above.
3.7.2 Notice of upcoming meetings may appear in such other places as the local paper, in newsletters sent out with bills and in other places available to the City.
3.8 Council Meeting Agendas
3.8.1 The City Manager, in cooperation with the City Clerk and City Attorney, shall prepare an agenda for each regular meeting of the City Council. Any Council Member may place an item on the regular meeting agenda at a regular Council meeting or workshop by making a written request to the City Manager.
3.8.2 This policy does not prevent the Council from taking testimony at regular and special meetings of the Council, during the public comment portion of the Council meeting, on matters that are not on the agenda, which a member of the public may wish to bring beforethe Council. However, the Council shall not discuss or take action on such matters at that meeting. However, Council Members may briefly Council Policies Manual Section 3.0 Page 3 of 8
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respond to statements made or questions posed during public comment portions of a meeting. In addition, on their own initiative, or in response to questions raised by the public, Council Members may ask a question for clarification, make a brief announcement, or makea brief report on his or her own activities. Council Members may also provide a reference to City staff or other resources for factualinformation, request staff to report back to the bodyCouncil at a subsequent meeting concerning any matter, or take action to directstaff to place a matter of business on a future agenda.
3.8.3 At least seventy-two (72) hours prior to the time of all regular meetings, an agenda, which includes but is not limited to all mailers on which there may be discussion and/or action by the Council, shall be posted on the City Website and conspicuously for public reviewat City Hall.
3.8.4 The agenda for a special meeting shall be posted at least twenty-four (24) hours before the meeting in the same locations noted in Section
3.8.3. 3.8.5 In addition to the City Website and City Hall, Council meeting agendas or, if requested, the entire agenda packet shall be provided to any person who has filed a written request for such materials per the Ralph M. Brown Act. Such request shall be valid for one year.
3.9 Council Meeting Minutes
3.9.1 Council Meeting Minutes must be recorded for all Standing City Committee meetings, Workshops and Council meetings. Suchminutes should be concise, identifying the items considered, and any action taken.
3.9.2 If a written report is submitted for the item, then reference should be made to the written report rather than restating the report contents.General reference should be made to discussion of an item, rather than a detailed description. Action taken should be clearly identified in terms of motions made, who made the motion and second, and the results of the voting.
3.9.3 Copies of minutes shall be made for distribution to and for approval by Council Members with the agenda at regular Council meetings.
3.9.4 An audio tape recording of regular and workshop meetings of the City Council shall generally be made.
3.9.5 Motions, resolutions or ordinances shall be recorded as having passed or failed and individual votes will be recorded unless theaction was unanimous.
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3.9.6 All resolutions adopted by the Council shall be numbered consecutively starting new at the beginning of each chronological year.
3.9.7 The minutes of Council meetings shall be maintained as hereinafter outlined.
3.9.8 ProcodureContent of Minutes:
• Date, place and type of each meeting;• Council Members present and absent by name;• Call to order;• Pre-adjournment departure of Council Members by name, or if absence takes place when any agenda items are acted upon; • Adjournment of the meeting;
• Record of written notice of special meetings;• and,
• Record of items to be considered at special meetings.
3.9.9 Council Actions:
• Approval or amended approval of the minutes of preceding meetings;
• Complete information as to each subject of the Council’s deliberation;
• Complete information as to each subject including the roll call record of the vote on a motion if not unanimous;
• All Council resolutions and ordinances in complete context, numbered serially for each chronological year;
• A record of all contracts entered into;• A record of all bid procedures, including calls for bids authorized, bids received, and other action taken;
• Adoption of the annual budget;• A record of the City Manager’s report to the Council;• Approval of all policies and Council-adopted regulations; and, a record of all visitors and delegations appearing before the Council. However, in accordance with the Ralph M. Brown Act, amember of the public shall not be required, as a condition toattendance, to register his or her name or to provide any otherinformation.
3.10 Council Meeting Conduct
3.10.1 Meetings of the City Council shall be conducted by the Mayor (or Mayor Pro Tem in the Mayor’s absence, or in the absence of theMayor Pro Tem, by the Council Member selected to be the presiding Council Policies Manual Section 3.0 Page 5 of 8
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officer by the remaining Council Member) in a manner consistent with the policies set forth herein.
3.10.2 In accordance with the Ralph M. Brown Act and Resolution No. 2012- 12, all Council meetings should commence at the time stated on the agenda and should be guided by the same. The purpose of CityCouncil meetings is to enable the Council to conduct the business of the City. As such, the following guidelines should be substantially followed, to the extent practicable, depending on the circumstances surrounding each meeting:3.10.2.1 After the ‘Call to Order, Pledge of Allegiance, Roll Call, and Approval of Agenda”, the Council will act on the“Consent Agenda”; approving these items with one motion unless any are requested to be pulled from
Consent by a Council Member or a member of the
public. In this case, each item pulled will be discussed and voted upon separately. The City Manager shall
have discretion to place an item on the consent
calendar. Such consent calendar items should be
those that are routine and where no controversy is
reasonably anticipated.
3.10.2.2 Each regular agenda item shall then be taken in agenda order unless the order is altered by the Mayor.
A brief report from the City Manager or other
designated staff will be given.
3.10.2.3 After hearing the staff report, the Council may ask questions of staff, discuss the issues involved, andcomment on the issues. These deliberations shall be guided by the Mayor.
3.10.2.4 After Council deliberations are concluded or prior to Council deliberations, the Mayor shall ask the audience for public comment prior to calling for a vote.
3.10.2.5 After public comment, the Council shall vote on the matter before them and proceed to the next agenda
item.
3.10.3 The conduct of meetings shall, to the fullest possible extent, enable Council Members to:
3.10.3.1 Consider problems to be solved, weigh evidence related thereto, and make wise decisions intended to
solve the problems; and,
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3.10.3.2 Receive, consider, and take any needed action with respect to reports of accomplishment of City
operations.
3.10.4 Provisions for permitting any individual or group to address the Council concerning any item on the agenda of a special meeting, or to address the Council at a regular meeting, or to otherwise addressthe Council on any subject that lies within the jurisdiction of the City Council, shall be as follows:3.10.4.1 If a member of the public desires to speak on a matter appearing on the agenda, the member should beallowed to speak when the agenda item is beingconsidered. If a member of the public desires to speak on a matter not appearing on the agenda, the member
should speak during the period for public comments.Speakers are requested to give their name and maygive their address. The Council cannot take action onany item brought up at a public comment time except to refer the matter to staff and/or place it on a future agenda.
3.10.4.2 F4eThree (53) minutes may be allotted to each
speaker to each subject matter;
3.10.4.3 No boisterous conduct shall be permitted at any City Council meeting. Persistence in boisterous or
disruptive conduct shall be grounds for summarytermination, by the Mayor, of that person’s privilege of address to the Council and the Mayor may take such
action in accordance with the Ralph M. Brown Act.
3.10.5 The City is required to follow certain legal requirements in connection with disclosure of information regarding City employees and personnel matters. Therefore, the Council will conduct any discussion of personnel matters in compliance with such laws. As a result, it will be the policy of the Council that no oral presentation shall include charges or complaints against any City employee, regardless of whether or not the employee is identified in thepresentation by name or by another reference, which tends toidentify. All charges or complaints against employees shall be submitted to the City Manager for investigation in writing via email or hard copy.
3.10.6 Willful disruption of any of the meetings of City Council shall not be permitted. In accordance with the Ralph M. Brown Act, if the CityCouncil finds that there is in fact willful disruption of any meeting of Council Policies Manual Section 3.0 Page 7 of 8
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the Council, they may order the room cleared and subsequently conduct the Council’s business without the audience present.
3.10.7 In such an event, only matters appearing on the agenda may be considered in such a session.
3.10.8 After clearing the room, the City Council may permit those persons who were not responsible for the willful disruption to reenter the meeting room.
3.10.9 Duly accredited representatives of the news media, whom the City Council finds not to have participated in the disruption, shall beallowed to attend the remainder of the meeting.
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Section
4.0 CITY OF AVALON Revision Date
COUNCIL POLICIES MANUAL 8/512014
COUNCIL MEMBER COMPENSATION AND RULES AND
REGULATIONS REGARDING PAYMENT OF
COMPENSATION AND EXPENSE REIMBURSEMENT
4.1.1 This section is enacted pursuant to Government Code sections 53232.1 and 36516, to establish rules and regulations regarding payment of compensation and reimbursement for Council Members of the City of Avalon.
4.2 Council Member Compensation and Reimbursement of Actual and Necessary Expenses
4.2.1 Council Members shall receive compensation of three hundred dollars ($300) per month. Additionally, Council Members may receive reimbursement for actual and necessary expenses incurredin the performance of their official duties for attendance at certainauthorized meetings.
4.3 Authorized Meetings for Which Reimbursement of Actual and Necessary Expenses is Allowed
4.3.1 Attendance at meetings where attendance is in the best interests of the City. Such meetings include:
a) The League of California Cities’ annual meeting, meetings of the League’s Los Angeles County Division and League Policy Committee Meetings;b) The Contract Cities Associate Association Fall and Spring Conferences and monthly meetings; c) Meetings of other organizations or groups where Council Members serve as representatives of the City to such meetings, such as the Gateway COG.
d) Such meetings also include meetings that come to theattention of the City Manager or the Council Member with insufficient
4.1 Purpose
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time to seek Council approval at a regular Council meeting. At the City Manager’s discretion, he/she may also determine thatattendance by a Council Member at these meetings is in the best interest of the City if City Council approval is not obtained prior to themeeting.
4.4 Authorization for Attendance at Additional Meetings The following is the procedure for obtaining approval for attendance at public meetings of other organizations, seminars, conferences, and other public meetings for which a Council Member may seek reimbursement for attendance:
4.4.1 At each regular Council meeting there will be an agenda items entitled “Council Member Reports and Requests/Mayor Reports and Requests.” This agenda item will allow Council Members to seek from the Council approval for attendance at upcoming meetings of other organizations, seminars, conferences, and other meetings not authorized pursuant to Section 4.3.1. Retroactive approval of nonauthorized meetings is not allowed under the Government Code.
4.5 Meeting Attendance Reports.
4.5.1 A Council Member who has attended an authorized meeting, seminar, or conference, as provided for in Section 4.3 or 4.4 of this Policy for which the Council Member seeks reimbursement shallmake a report regarding the meeting, seminar, or conference at thenext regular Council meeting following such attendance and shallmake materials obtained at such meetings, seminars andconferences available to other Council Members.
4.6 Meeting and Conference Expense
4.6.1 Council Members shall be reimbursed for all actual expenses incurred in attending any meetings or in making any trips on officialbusiness of the City when so authorized in accordance with Sections
4.3.3 and as allowed by Government Code Section 53232.2.
4.6.2 Reimbursement for the cost of the use of a personal vehicle shall be on the basis of total miles driven and at the rate specified in the Internal Revenue Service Guidelines in effect at the time of the vehicle usage.
4.6.3 Reimbursements and costs incurred by Council Members including meeting stipends shall be reported publicly as required by law.
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5.1.1 The City Council of City of Avalon is committed to providing excellence in legislative leadership that result in the provision of thehighest quality of services to its constituents. In order to assist in the government of the behavior between and among members of the City Council, the following rules shall be observed.
5.1.2 The specific policies based upon City Council and staff communication are premised on the City’s structure as a City Manager/City Council form of government where the City Council can act only as a body pursuant to action taken at a meeting and that individual Council Members have no individual authority to commit the City to action.
5.2 Priorities and Commitment
5.2.1 The dignity, style, values and opinions of each Council Member shall be respected.
5.2.2 Responsiveness and attentive listening in communication is encouraged.
5.2.3 The needs of the City’s constituents should be the priority of the City Council.
5.2.4 The primary responsibility of the City Council is the formulation and evaluation of policy. Routine matters and the day-to-day management and operation of the City are within the purview of the professional staff members of the City and are the primaryresponsibility of the City Manager.
5.2.5 Council Members should commit themselves to emphasizing the positive, avoiding double talk, hidden agendas, hearsay, malicious talk, backbiting, and other negative forms of interaction.
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5.2.6 Council Members should commit themselves to focusing on issues and not personalities. The presentation of the opinions of others should be encouraged. Cliques and voting blocks based on personalities rather than issues should be avoided.
5.2.7 Differing viewpoints are healthy in the decision-making process.
Individuals have the right to disagree with ideas and opinions, but without being disrespectful. Once the City Council takes action, Council Members should commit to supporting said action and not to create barriers to the implementation of said action.
5.3 Procedures
5.3.1 Council Members should practice the following procedures:
5.3.1.1 In seeking clarification on informational items, Council Members may directly approach professional staffmembers to obtain information needed to supplement,upgrade, or enhance their knowledge to improvelegislative decision-making.
5.3.1.2 In handling complaints from residents and property owners of the City, said complaints should be referred
directly to the City Manager.
5.3.1.3 The appropriate handling of issues related to safety, concerns for safety or observed hazards is to report
them to the City Manager or to City Hall. Emergency
situations should be dealt with immediately by seeking
appropriate assistance.
5.3.1.4 In seeking clarification for policy-related concerns, especially those involving personnel, legal action, landacquisition and development, finances, and programming, said concerns should be referred
directly to the City Manager.
5.3.1.15.3.1 .5Adjudicative Decisions. For those decisions- Formatted: Tab stops: 2.2’, List tab considered to be adjudicative decisions like appeals
from the planning commission or City Manager
decisions and the granting of entitlements, the Councilshall not be biased and shall be fair and impartial andshould base its decision on the evidence and materials presented at the Council meeting. Any
communications to individual Council members should
be disclosed as well as any information a Council
member is relying upon that is not formally presented
at the Council meeting.
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5.4 Council and Staff Relationships
5.4.1 When approached by City personnel concerning specific City policy, Council Members should direct inquiries to the City Manager. Thechain of command should be followed.
5.4.2 The work of the City is a team effort. All individuals should work together in the collaborative process, assisting each other in conducting the affairs of the City.
5.4.3 When responding to constituent requests and concerns, Council Members should be courteous, responding to individuals in a positive manner and routing constituent questions to the City Manager who will assign any response to responsible personnel.
5.4.4 Council Members should develop a working relationship with the City Manager wherein current issues, concerns and City projects can be discussed comfortably and openly.
5.4.5 Council Members should function as a part of the whole. Issues should be brought to the attention of the Council as a whole, rather than to individual members selectively.
5.4.6 Council Members are responsible for monitoring the City’s progress in attaining its goals and objectives, while pursuing its mission.
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6.1.1 Actions by the City Council may include but are not limited to the following:
6.1.1.1 Adoption, rejection, revision or amendment of certain regulations or policies;
6.1.1.2 Adoption, rejection, revision or amendment of a resolution;
6.1.1.3 Adoption, rejection, revision or amendment of an ordinance;
6.1.1.4 Approval, rejection, revision or amendment of any contract or expenditure;
6.1.1.5 Approval, rejection, revision or amendment of any proposal which commits City funds in excess of the
amounts set forth in the Purchasing Ordinance or useof City facilities; and,
6.1.1.6 Approval, disapproval or alteration of matters, which require or may require the City or its employees to takeaction and/or provide services. 64466.1.1.7Resolutions, orders for the payment of money and all Formatted:Tab stops: 2.2”, List tab 1 ordinances require a recorded maority vote of the total membership of the Council, i.e. three votes.
6.2 Methods for Taking Action Abstentions
If a Council Member abstains from voting on a matter, the abstention cannot be counted as an affirmative vote.6.2.1.1 ExamDlc. If 3 of 5 Council Members are present at a
6.1 Possible Actions
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conducted. However, if 1 Council Member abstains on
a particular action and the other 2 cast “aye” votes, noaction is taken because a ‘majority of the Council” did not vote in favor of the action.
6.2.1.2 Example. If an action is proposed requiring a two thirds vote and 2 Council Members abstain, the
proposed action cannot be approved because 4 of the5 Council Members would have to vote in favor of the
6.2.1.3 Example. If a vacancy exists on the Council and a vote is taken to appoint an individual to fill said vacancy, 3Council Members must vote in favor of the appointment for it to be approved. If 2 of the I Council Members
6.3 Informal Action
6.3.1 The Council may give directions, which are not formal action. Such directions do not require formal procedural process. Such directions include the Council’s directives and instructions to the City Manager.
6.3.2 The Mayor shall determine by consensus a Council directive and shall state it for clarification. Should any two Council Memberschallenge the statement of the Mayor, a voice vote may be requested.
6.3.3 A formal motion may be made to place a disputed directive on a future agenda for Council consideration, or to take some other action (such as refer the matter to the City Manager for review and recommendation, etc.).
6.3.4 Informal action by the Council is still Council action and shall only occur regarding matters which appear on the agenda for the Council meeting during which said informal action is taken and for whichmore formal action is not required.
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Action items shall be brought before and considered by the Council by motion in accordance with this policy. These rules of order areintended to be informal and applied flexibly. The Council prefers a flexible form of meeting and, therefore, conducts its meetings under Rosenberg’s Rules of Order. The intent of these rules of order is to provide guidance for the conduct of meetings and the Council should strive to substantially comply with these rules of order.
7.1.2 If a Council Member believes order is not being maintained or procedures are not adequate, then he/she should raise a point of order - not requiring a second - to the Mayor. If the ruling of the Mayor is not satisfactory to the Council Member, then it may be appealed to the Council. A majority of the Council will govern and determine the point of order.
7.2 Obtaining the Floor
7.2.1 Any Council Member desiring to speak should address the Mayor and, upon recognition by the Mayor, may address the subject underdiscussion.
7.3 Motions
7.3.1 Any Council Member, including the Mayor, may make or second a motion. Motions to take action on an item are generally made after staff presentation of the agenda item, public comment, and Councildeliberation has occurred. A motion shall be brought and consideredas follows:7.3.1.1 A Council Member makes a motion, another Council Member seconds the motion, and the Mayor or City
Attorney py..states the motion.
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7.3.2 Qnoe-the-Mayo-Gty-Attemey-has-stated-the-moionAfter a motion has been made and seconded, the motion is open to discussion anddebate. After such discussion, the Mayor will call for the vote.
7.3.2.1 If the public in attendance has had an opportunity to comment on the proposed action, any Council Member
may move to immediately bring the question being
debated to a vote, suspending any further debate. Themotion must be made, seconded, and approved by a majority vote of the Council.
7.3.3 Secondary Motions. Ordinarily, only one motion can be considered at a time and a motion must be disposed of before any other motionsor business is considered. There are a few exceptions to this general rule, though, where a secondary motion concerning the main motionmay be made and considered before voting on the main motion.
7.3.3.1 Motion to Amend. A main motion may be amended
before it is voted on, either by the consent of theCouncil Members who moved and seconded, or by anew motion and second.
7.3.3.2 Motion to Table. A main motion may be indefinitely tabled before it is voted on by motion made to table,
which is then seconded and approved by a majorityvote of the Council.
7.3.3.3 Motion to Postpone. A main motion may be postponed to a certain time by a motion to postpone, which is thenseconded and approved by a majority vote of the Council.
7.3.3.4 Motion to Refer to Committee. A main motion may be referred to a Council committee for further study andrecommendation by a motion to refer to a Council committee, which is then seconded and approved by a
majority vote of the Council.
7.3.3.5 Motion to Close Debate and Vote Immediately. As provided above, any Council Member may move to
close debate and immediately vote on a main motion.
7.3.3.6 Motion to Adjourn. A meeting may be adjourned by motion made, seconded, and approved by a majority
vote of the Council before voting on a main motion.
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7.4 Decorum
7.4.1 In accordance with the Ralph M. Brown Act, the Mayor shall take whatever actions are necessary and appropriate to preserve order and decorum during Council meetings, including public hearings.
The Council may eject any person or persons making personal, impertinent or slanderous remarks, refusing to abide by a request from the Mayor, or otherwise disrupting the meeting or hearing.
7.4.2 The Mayor may also declare a short recess during any meeting.7.4.3 The Mayor shall be addressed as “Mayor (Surname)”. The Mayor Pro Tern and other councilmembers shall be addressed as “MayorPro Tern (Surname)” or “Councilmember (Surname)”.
7.4.4 Speaking over others or interrupting while others have the floor is not permitted.
7.4.5 Cell phones and pagers should be turned off or shall be set to vibrate during meetings.
7.4.6 If Council Members must take an emergency call during a meeting, the call should be taken outside of the meeting room so as to not distract from the proceedings of the meeting.
7.4.7 Council Members are to provide advance notice to the City Clerk’s office in advance of an impending absence, unless the absence is attributable to a sudden unanticipated event. This information is necessary in order for the staff to determine in advance whether a quorum will be available for a meeting.
7.4.8 Council Members are expected to attend all regularly scheduled Council meetings, work sessions and closed sessions, and to be in their seats by the time that the meeting is scheduled to start.
7.4.9 After the Council has taken an official position on an issue, all official correspondence should reflect this position. Council Members whodisagree with a position taken by the Council are freeallowed to prepare correspondence on such issues identifying the information or opinions as solely their own. No staff support, City expense or City letterhead will be used in such instance.
7.4.10 No City Council Member shall be empowered to grant any special consideration, treatment, advantage or favor to any individual, group,company or organization beyond that which is generally available to the public at large.
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7.4.11 Council Members should remember that they are only one individual member, and discretion should be used when speaking on issues, and they should refrain from making individual statements that give the appearance of advocacy whenever issues are brought before Council for which the full array of relevant facts has not yet beenaccumulated and evaluated.
7.4.12 All remarks from members of the public shall be addressed to the Council as a whole and not to any single member, unless in response to a question from a Council Member.
7.4.13 A person who addresses the Council under public comment for a specific agenda item or under the general public comment period ofthe agenda may not engage in speech or conduct (i) which is likely to provoke others to violent or riotous behavior, (ii) which disturbs the peace of the meeting by loud and unreasonable noise, (iii) which isirrelevant or repetitive, or (iv) which disrupts, disturbs, or otherwiseimpedes the orderly conduct of any City Council meeting.
7.4.14 A person, other than members of the Council and the person who has the floor, shall not be permitted to enter into the discussionunless requested by the Mayor to speak.
7.4.15 Members of the Council shall minimize from interrupting any person who has the floor while making his or her public comments to the City Council. The Council shall wait until a person completes his or herpublic comments before asking questions or commenting so long as their time has not expired. The Mayor may then ask Council Members if they have comments or questions.
7.4.16 No person in the audience at a Council meeting shall engage in disorderly or boisterous conduct, including the utterance of loud, threatening or abusive language, whistling, stamping of feet or other acts which disturb, disrupt or otherwise impede the orderly conduct of any Council meeting.
7.4.17 The Mayor shall request that a person speaking at the podium during a public comment period or a member of the audience who is violating the rules of decorum, comply immediately with these rulesof decorum.
7.4.18 If, after receiving a warning from the Mayor and/or the City Attorney, a person persists in violating the rules of decorum during the meeting, the Mayor may order him or her to leave the meeting aspermitted under the Brown Act. Any person so ordered removed shallbe excluded from further attendance at the meeting from which he or she has been removed, unless permission to attend is granted upon Council Policies Manual Section 7.0 Page 4 of 5
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motion adopted by a majority vote of the Council. If that person does not remove himself or herself, the Mayor may ask law enforcement to escort that person from the Council Chamber.
7.4.19 Council Members should remember that members of the public have a right to be present at meetings and express their opinions on matters before the Council. The public is encouraged to attend and participate in such meetings as active public participation assists the Council in the decision-making process. Council Members should be respectful of staff and members of the public in attendance, especially those with whom Council Members disagree. Council Members should focus their comments on matters raised by the public to the merits or substance of the comments themselves andnot make personal attacks upon those providing the comments.
7.5 Amendment of Rules of Order
7.5.1 By motion made, seconded and approved by a majority vote, the Council may, at its discretion, at any meeting, and in accordance withCalifornia law:
a) Temporarily suspend these rules in whole or in part; b) Amend these rules in whole or in part; or,
c) Both.
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Members of the City Council are encouraged to attend educational conferences and professional meetings when the purposes of suchactivities are to improve City operation. Therefore, there is no limit to the number of Council members attending a particular conference or seminar when it is apparent that their attendance is beneficial to the City. Council members should be aware that requirements of the Ralph M. Brown Act may apply depending on the circumstances of any such meeting.
8.1.2 ‘Junkets” (a tour or journey for pleasure at public expense), will not be permitted.
8.2 Policy
8.2.1 It is the policy of the City to encourage Council member development and excellence of performance by reimbursing expenses incurred for tuition, travel, lodging and meals. Council members will be reimbursed for their expenses as a result of training, educational courses, participation with professional organizations, andattendance at local, state and national conferences associated withthe interests of the City.
8.2.2 The City Manager or his or her designee is responsible for making arrangements for Council members for conference and registrationexpenses. When appropriate, the City shall also reimburse a Council member for meal expenses, lodging, and travel. All expenses for which reimbursement is requested by Council members, or which are billed to the City by Council members, shall be submitted to the City Manager or his or her designee, together with validated receipts.
8.3 Approval
8.3.1 Attendance by Council members of seminars, workshops, courses, professional organization meetings, and conferences shall be
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approved by the City Council, in accordance with City policy, prior to incurring any reimbursable costs.
8.4 Reimbursement
8.4.1 Expenses to the City for Council member’ training, education and conferences should be kept to a minimum by utilizing
recommendations for transportation and housing accommodationsput forth by the City Manager and by:
8.4.1.1 Utilizing hotel(s) recommended by the event sponsor in order to obtain discounted rates.
8.4.1.2 Council members traveling together whenever feasible and economically beneficial.
8.4.1.3 Requesting reservations sufficiently in advance, when possible, to obtain discounted airlares and hotel rates.
8.4.2 A Council member shall not attend a conference or training event for which there is an expense to the City if it occurs after they have announced their pending resignation, or if it occurs after an election in which it has been determined that they will not retain their seat on the Council. A Council member shall not attend a conference ortraining event when it is apparent that there is no significant benefitto the City.
8.5 Reporting
8.5.1 Upon returning from seminars, workshops, conferences, etc., where expenses are reimbursed by the City, Council members shall presenta written report and make a verbal report during the next regular meeting of the Council. Said report should detail what was learned at the session(s) that will be of benefit to the City. Copies of materials from the session(s) shall be delivered to City Hall to be included in the Council action record for the future use of other Council members and staff.
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CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: 2-.
ORIGINATING DEP: City Clerk CITY MANAGER:
PREPARED BY: Gabrielle Morones, Deputy City Clerk
SUBJECT: City Council Minutes
RECOMMENDED ACTION(S): Approve minutes from the July 2, 2024 regular City Council Meeting.
REPORT SUMMARY: Although the live recording is the official record of publicmeetings, minutes are prepared for the Council’s approval.
FISCAL IMPACTS: N/A.
GOAL ALIGNMENT: Not Aligned.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A.
FOLLOW UP ACTION: File minutes in the City Clerk’s office.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed onthe posted agenda pursuant to the Brown Act.
ATTACHMENTS:
July 2, 2024 regular City Council Meeting Minutes
AVALON CITY COUNCIL MEETING
TUESDAY, JULY 2, 2024 — 5:00 PM
410 AVALON CANYON ROAD
MINUTES
CALL TO ORDER-5:O0 p.m.
ROLL CALL Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Yesenia De La Rosa, Lisa Lavelle, Michael Ponce, and Mary Schickling. Also present: City Manager David Maistros, City Attorney Scott Campbell and Management Analyst Devin Hart.
ANNOUNCEMENTS I WRITTEN COMMUNICATIONS: None.
PRESENTATION -None.
CONSENT CALENDAR-There were four items on the Consent Calendar. Motion to approve Items #1-#4 made by Michael Ponce, seconded by Councilmember Lavelle. (All Ayes)
1. City Council Minutes
Approved minutes from the June 4, 2024 regular City Council Meeting.
2. Warrants
Approved warrants from the General Fund in the amount of $1,660,908.04, one payroll totaling $241,916.80, two electronic fund transfers totaling $48,308.31 for a total expenditure of $1,951,133.15 for June 10, 2024 through June 21, 2024.
3. Declare Surplus Equipment
Adopted Resolution No. 24-28 of the City Council of the City of Avalon Declaring Specified Equipment to be Surplus and Authorizing the Sale or Disposal Thereof.
4. Avalon Mooring and Diving Service, Inc. Contract Assignment
1. Conditionally approved the assignment of the Avalon Mooring and Diving Services, Inc. mooring maintenance franchise agreement from Mark Bray to Scott Gorelczenko. 2. Once a sale is complete, authorize the City Manager to execute an eighth amendment assigning the franchise agreement and maintaining all other terms. This assignment is contingent upon the parties executing an agreement to transfer the business.
CITY COUNCIL MINUTES
JULY 2, 2024
PAGE 2
GENERAL BUSINESS
5. First Reading of an Ordinance Amending Chapter 4-4 of the Avalon Municipal Code Regarding Curb Markings and Adoption of Exemption Findings Under the California Environmental Quality Act
Introduced and waived all readings of an ordinance of the City of Avalon amending Chapter 4-4 to the Avalon Municipal Code regarding curb markingsand adoption of exemption findings under the California Environmental Quality Act.
Motion to approve made by Michael Ponce, seconded by Anni Marshall. (4 Ayes-Marshall, Lavelle, De La Rosa, Ponce; 1 No-Schkkling) Mayor Marshall adjourned the meeting at 6:15 p.m.
I, Gabrielle Morones, City Clerk, do hereby certify that the DVD videotape of the regular City Council Meeting on July 2, 2024, is the official record of the Council Meeting and is on file and maintained in City Hall.
Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: -3
ORIGINATING DEP: Finance CITY MANAGER: ______ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve total expenditures for July 8, 2024 through July 26, 2024 totaling $2,565,336.78.
REPORT SUMMARY: These disbursements through July 26th are comprised of warrants from the US Bank General Account totaling $842,983.29, two payrolls totaling $566,563.53, and other electronic fund transfers totaling $1,155,789.96, which includes the City’s annual contribution of $1,060,152.00 towards its unfunded pension liability.
ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 38293-38388 840328.47 07/19/24GE US BANK WARRANTS CK# 38389-38390 2654.82 07/25/24 PAYROLL 288,417.38 07/12/24PAYROLL 278,146.15 07/26/24
EFT -CALPERS UAL 1,060,152.00 07/23/24EFT -CALPERS RETIREMENT 43,074.56 07/09/24 EFT -CALPERS RETIREMENT 44,850.04 07/23/24EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 7,713.36 07/26/24 TOTAL DISBURSEMENTS $ 2,565,336.78
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY23-24 Budget and FY24-25 Budget.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: Audit Certificate, Warrant Lists, US Bank Credit Card Detail
CITY OF AVALON
July 8 -July 26, 2024 DISBURSEMENTS
August 6, 2024
ITEM DESCRIPTION AMOUNT DATE
GE US BANK WARRANTS CK# 38293-38388 840,32847 07/19/24
OF US BANK WARRANTS CK# 38389-38390 2,65482 07/2S/24
PAYROLL 288,417.38 07/12/24
PAYROLL 278,146.15 07/26/24EFT - CALPERS UAL 1,060,1S2.00 07/23/24 EFT - CALPERS RETIREMENT 43,074.56 07/09/24EFT -CALPERS RETIREMENT 44,850.04 07/23/24 EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 7,713.36 07/26/24 TOTAL DISBURSEMENTS $ 2,565,336.78
CERTIFICATE
IN ACCORDANCE WITH SECTION 32702
OF THE GOVERNMENT CODE, I CERTIFY
THAT THE ABOVE DEMANDS ARE ACCURATEAND THAT FUNDS ARE AVAILABLE FOR PAYMENT.
I CERTIFY UNDER PENALTY OF PERJURY
APPROVED AND AUDITED THIS THAT THE FOREGOING IS TRUE AND 6TH DAY OF AUGUST 2024 CORRECT.
EXECUTED THIS 6TH DAY OF AUGUST 2024
AUDIT COMMITTEE - MICHAEL PONCE
FINANCE DIRECTOR - MATTHEW BAKER
AUDIT COMMITTEE -MARY SCHICKLING
CITY OF AVALON
WARRANT DISBURSEMENTS
July 19, 2024
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
38303 07/19/2024 $ 619732 AAA OIL, INC FUEL: ALL DEPARTMENTS 38304 07/19/2024 $ 88.20 AIR SOURCE INDUSTRIES SUPPLIES: FIRE38305 07/19/2024 $ 1,279.79 AMAZON CAPITAL SERVICES, INC. SUPPLIES: ALL DEPARTMENTS 38306 07/19/2024 $ 1,480.12 AT & T COMMUNICATIONS: ALL DEPARTMENTS38307 07/19/2024 $ 174,687.06 CR&R INCORPORATED CONTRACT SERVICES: 06/202438308 07/19/2024 $ 84S.31 AVALON FREIGHT SERVICES, LLC FREIGHT: ALL DEPARTMENTS 38309 07/19/2024 $ 1,136.00 HICKMAN, JESSICA SERVICE: RECREATION38310 07/19/2024 $ 17,20685 AVALON MOORING & DIVING SERVICE: HARBOR 38311 07/19/2024 $ 12,780.99 AVALON SEAFOOD RENT RECONCILIATION 2022 8 2023 38312 07/19/2024 $ 462.01 CATALINA BEVERAGE CO SUPPLIES: ALL DEPARTMENTS38313 07/19/2024 $ 2,136.16 PACIFICA CATALAN LODGING: HILLSIDE 38314 07/19/2024 $ 92.00 CATALINA EXPRESS TRAVEL: ADMINISTRATION38314 07/19/2024 $ 47,511.60 CATALINA EXPRESS SUBSIDY: 06/2024 38315 07/19/2024 $ 1,165.05 CATALINA ISLAND MEDICAL CENTER EMPLOYEE SCREENING: ALL DEPARTMENTS 38316 07/19/2024 $ 5,118.01 CHEROKEE CHEMICAL CO. INC. WWTP: SCREW PRESS38317 07/19/2024 $ 14,411.25 CIVICPLUS, LLC SERVICE: ADMINISTRATION 38318 07/19/2024 $ 581.30 COOK, AMANDA RETIREE INSURANCE: 05/2024 & 06/202438319 07/19/2024 $ 2,655.91 DAPEER, ROSENBLIT & LITVAK,LLP SERVICE: VEHICLES38320 07/19/2024 $ 126.37 DION & SONS MARINE FUELS INC FUEL: HARBOR 38321 07/19/2024 $ 3,019.26 PAPE SUPPLIES: PUBLIC WORKS38322 07/19/2024 $ 2,S23.50 LOCALITY MEDIA, INC. SOFTWARE: FIRE 38323 07/19/2024 $ 1,177.00 GEOGRAPHIC DATA & MANAGEMENT SERVICE: ADMINISTRATION 38324 07/19/2024 $ 3,S72.03 GRAINGER SUPPLIES: PUBLIC WORKS 38325 07/19/2024 $ 1,5S6.46 HINDERLITER, DE LLAMAS & ASSOCIATES SERVICE: FINANCE38326 07/19/2024 $ 3,151.89 HOME DEPOT CREDIT SERVICES SUPPLIES: PUBLIC WORKS38327 07/19/2024 $ 2,174.58 1DB ENVIRONMENTAL SERVICES HW DISPOSAL 38328 07/19/2024 $ 1,133.33 INDUSTRIAL METAL SUPPLY COMPANY SUPPLIES: PUBLIC WORKS38329 07/19/2024 $ 538.92 ISLAND FIRE EXTINGUISHERS, INC. SERVICE: FIRE38330 07/19/2024 $ 2,192.50 JORDAI-IL CONSTRUCTION SUPPLIES: PUBLIC WORKS 38331 07/19/2024 $ 51,916.2S KEY CODE MEDIA, INC. SERVICE: ADMINISTRATION38332 07/19/2024 $ 156.16 LOS ANGELES COUNTY TAX COLLECTOR PROPERTY TAX 2024 38333 07/19/2024 $ SS.26 ISLAND EXPRESS HELICOPTERS INC. FREIGHT: PUBLIC WORKS38334 07/19/2024 $ 132,495.99 PERC WATER CONTRACT SERVICES: 06/202438335 07/19/2024 $ 702.89 QUILL CORP SUPPLIES: ALL DEPARTMENTS 38336 07/19/2024 $ 11,782.81 SAGECREST PLANNING & ENVIRONMENTAL CONTRACT SERVICES: PLANNING38337 07/19/2024 $ 5,047.75 STATE LANDS COMMISSION HAMILTON COVE LEASE 38338 07/19/2024 $ - CORPORATE PAYMENT SYSTEMS VOID: MULTI STUB CHECK38339 07/19/2024 $ 9,978.60 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL 38340 07/19/2024 $ 1,690.11 USA BLUEBOOK SUPPLIES: WWTP38341 07/19/2024 $ 6,883.63 WESTRIDGE ENVIRONMENTAL GROUP SUPPLIES: WWTP 38342 07/19/2024 $ 257.40 ZOLL MEDICAL CORP. SUPPLIES: FIRE38343 07/19/2024 $ 780.00 ADVANCED PROBLEM SOLVING LLC TRAINING: FIRE 38344 07/19/2024 $ - AMAZON CAPITAL SERVICES, INC. VOID: MULTI STUB CHECK3834S 07/19/2024 $ 6,629.46 AMAZON CAPITAL SERVICES, INC. SUPPLIES: ALL DEPARTMENTS 38346 07/19/2024 $ 5,063.29 AVALON FREIGHT SERVICES, LLC FREIGHT: ALL DEPARTMENTS38347 07/19/2024 $ 24,083.33 AVALON SHOREBOAT SERVICE CORP. CONTRACT SERVICES: 08/2024 38348 07/19/2024 $ 300.00 BENTDAHL, MARY SERVICE: RECREATION38349 07/19/2024 $ 200.71 CATALINA BEVERAGE CO SUPPLIES: ALL DEPARTMENTS38350 07/19/2024 $ 137,S00.00 CATALINA CHAMBER OF COMMERCE TOT: 08/2024 38351 07/19/2024 $ 10,494.00 CATALINA ISLAND COMPANY RENT: 07/202438352 07/19/2024 $ 306.00 CATALINA ISLANDER ADVERTISING: ALL DEPARTMENTS38353 07/19/2024 $ 254.15 CICCS/EAP SERVICE: ADMINISTRATION 38354 07/19/2024 $ 290.6S COOK, AMANDA RETIREE INSURANCE: 07/2024383SS 07/19/2024 $ 3S,000.00 CURTIN MARITIME CORP. SERVICE: 4TH OF JULY38356 07/19/2024 $ 6,690.92 DELTA DENTAL DENTAL: 07/2024 38357 07/19/2024 $ 842.00 DEWEY PEST CONTROL SERVICE: ALL DEPARTMENTS38358 07/19/2024 $ - DION & SONS MARINE FUELS INC VOID: MULTI STUB CHECK38359 07/19/2024 $ 2,233.49 DION & SONS MARINE FUELS INC FUEL: HARBOR 38360 07/19/2024 $ 1,0S7.95 FIDELITY SECURITY LIFE INSURANCE VISION: 07/2024 38361 07/19/2024 $ 1,925.00 LOCALITY MEDIA, INC. SOFTWARE: FIRE38362 07/19/2024 $ 11,802.00 GEO-LOGIC ASSOCIATES, LLC. PBL EXPANSION CIP38363 07/19/2024 $ 40.S0 GRAINGER SUPPLIES: PUBLIC WORKS 38364 07/19/2024 $ 270.00 HERNANDEZ, TESSA REFUND: RECREATION 38365 07/19/2024 $ 1,200.00 LAAFCA FIRE: ANNUAL DUES38366 07/19/2024 $ 770.00 LOCAL 2295 AVALON FIREFIGHTERS UNIO UNIFORMS: FIRE 38367 07/19/2024 $ 149.00 LOS ANGELES COUNTY EMSA TRAINING RECERTIFICATION: FIRE38368 07/19/2024 $ 149.00 LOS ANGELES COUNTY EMSA TRAINING RECERTIFICATION: FIRE 38369 07/19/2024 $ 2,032.00 MASA DUES: 07/2024 AND 08/202438370 07/19/2024 $ 23.38 MCMASTER-CARR SUPPLIES: PUBLIC WORKS
CHECK DATE
CITY OF AVALON
WARRANT DISBURSEMENTS
July 19, 2024
$840,328.47
NUMBER ISSUED AMOUNT NAME DESCRIPTION
38371 07/19/2024 $ 344.10 MM INTERNET, INC. SERVICE: IT - 38372 07/19/2024 $ 450.00 MOJICA, PRISCILLA REFUND: RECREATION 38373 07/19/2024 $ 217.25 MONTANO, RAFAEL REIMBURSMENT 0/P COSTS38374 07/19/2024 $ 722.13 PEERLESS MATERIALS COMPANY SUPPLIES: HARBOR38375 07/19/2024 $ 153.40 QUILL CORP SUPPLIES: ALL DEPARTMENTS 38376 07/19/2024 $ 1,817.80 RICOH AMERICAS CORP COPIER LEASE: PLANNING38377 07/19/2024 $ 1,340.01 RICOH USA, INC. COPIER LEASE: PLANNING38378 07/19/2024 $ 107.22 SFC HOLDINGS, LLC UNIFORMS: HARBOR 38379 07/19/2024 $ 500.00 DAILEY, MICHAEL SERVICE: RECREATION38380 07/19/2024 $ 9,357.91 SIRIAS CLEANING SERVICE 1ST HALF 07/202438381 07/19/2024 $ 9,357.91 SIRIA’S CLEANING SERVICE 2ND HALF 07/202438382 07/19/2024 $ 1,205.89 STANDARD INSURANCE COMPANY LIFE INSURANCE: 07/2024 38383 07/19/2024 $ 4,105.30 SUPERION, LLC SOFTWARE LEASE: FINANCE38384 07/19/2024 $ 41.50 UNDERGROUND SERVICE ALERT/SC SERVICE: PUBLIC WORKS38385 07/19/2024 $ 7,487.S8 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL38386 07/19/2024 $ 18,7S0.00 VEGA, EDMUNDO CONTACT SERVICES: 07/202438387 07/19/2024 $ 2,222.97 VERIZON WIRELESS COMMUNICATIONS: ALL DEPARTMENTS 38388 07/19/2024 $ 93.05 WEST MARINE PRO SUPPLIES: HARBOR Puge 2 of 2
CITY OF AVALON
WARRANT DISBURSEMENTS
July 25, 2024
CHECK DATENUMBER ISSUED AMOUNT NAME DESCRIPTION
38389 07/2S/2024 2,154.61 MCNICHOLS COMPANY SUPPLIES: HARBOR38390 07/25/2024 S00.21 DEGNAN, MORGAN REISSUED PAYROLL $2,654.82
Cli’? OF AVALON
US BANK CREDIT CARD CHARGES PAID JUNE 7, 2024
June 18, 2024
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT CARSTARPHEN 6/18/2024 $ 120.07 5Q* RIDEYELLOW GARDENA TRAVEL: HARBORCARSTARPHEN 6/21/2024 $ 7.62 CHETS HARDWARE SUPPLIES: MAINTENANCE OF PREMISES HARBOR CARSTARPHEN 6/25/2024 $ 19.54 FISHERIES SUPPLY SUPPLIES: VEHICLE/EOUPMENT MAINTENANCE HARBORCARSTARPHEN 6/27/2024 $ 120.44 THE RUSTY HOOK INC SUPPLIES: KELP BOAT HARBOR CARSTARPHEN 7/1/2024 $ 13.19 CHETS HARDWARE SUPPLIES: OFFICE HARBOR CARSTARPHEN 7/1/2024 $ 3.99 WEATHERFLOW SUBSCRIPTION: IT HARBORDAVID HART 5/21/2024 $ 82.09 EPIC SPORTS SUPPLIES: YOUTH SPORTS PROGRAMS RECREATION DAVID HART 5/22/2024 $ 87.91 CHETS HARDWARE SUPPLIES: 4TH OF JULY RECREATION DAVID HART 5/27/2024 $ 30.03 CHETS HARDWARE SUPPLIES: TREMONT HALL RECREATIONDAVID HART 5/29/2024 $ (19.79) AMAZON CREDIT RECREATION DAVID HART 5/29/2024 $ 19.79 AMAZON CREDIT RECREATION
DAVID HART 5/31/2024 $ 77.50 CAFE METROPOLE MEAL: PLAY 60 NFL RECREATIONDAVID HART 6/3/2024 $ 347.50 CATALINA EXPRESS TRAVEL: CONTRACT SERVICES DANCE RECREATION DAVID HART 6/5/2024 $ 590.30 BLANK SHIRTS SUPPLIES: SUMMER PROGRAMS RECREATIONDAVID HART 6/5/2024 $ 316.64 CUSTOME INK SUPPLIES: 4TH OF JULY RECREATION DAVID HART 6/6/2024 $ 84.56 CROWN AWARDS SUPPLIES: SUMMER PROGRAMS RECREATIONDAVID HART 6/7/2024 $ 284.76 ZAZZLE SUPPLIES: SUMMER PROGRAMS RECREATION DAVID HART 6/7/2024 $ 224.18 CROWN AWARDS SUPPLIES: 4TH OF JULY RECREATION DAVID HART 6/10/2024 $ 165.81 DRI*SIGNS.COM SUPPLIES: SUMMER PROGRAMS RECREATIONDAVID HART 6/11/2024 $ 501.03 DRI*ESGINS.COM SUPPLIES: 4TH OF JULY RECREATION DAVID HART 6/12/2024 $ 2.95 CHETS HARDWARE SUPPLIES: SMALL TOOLS RECREATION DAVID HART 6/13/2024 $ 65.93 CHETS HARDWARE SUPPLIES: 4TH OF JULY RECREATION DAVID HART 6/13/2024 $ 37.08 LLOYDS OF AVALON TRAINING: MEAL NEW HIRES RECREATIONDAVID HART 6/17/2024 $ 14.29 CHETS HARDWARE SUPPLIES: SMALL TOOLS RECREATION DAVID HART 6/19/2024 $ 39.59 CHETS HARDWARE SUPPLIES: SPECIAL EVENTS RECREATIONDAVID HART 6/19/2024 $ 167.12 ESIGNS.COM SUPPLIES: SUMMER PROGRAMS RECREATION DAVID HART 6/20/2024 $ 24.18 CHET’S HARDWARE SUPPLIES: DAY CAMP RECREATIONDAVID HART 6/21/2024 $ 21.32 VONS SUPPLIES: DAY CAMP RECREATION DAVID HART 6/21/2024 $ 385.00 SWANK MOTION PICTURES MOVIE: SUMMER PROGRAMS RECREATION DAVID HART 6/24/2024 $ 24.19 CHET’S HARDWARE SUPPLIES: 4TH OF JULY RECREATIONDAVID HART 6/24/2024 $ 36.90 VONS SUPPLIES: SUMMER PROGRAMS RECREATION DAVID HART 6/26/2024 $ 385.00 SWANK MOTION PICTURES MOVIE: SUMMER PROGRAMS RECREATION DAVID HART 6/26/2024 $ 424.78 IN*VARGAS * RAMIREZ SPORTS SUPPLIES: YOUTH SPORTS PROGRAMS RECREATIONDAVID HART 6/26/2024 $ 195.73 IN*VARGAS * RAMIREZ SPORTS SUPPLIES: YOUTH SPORTS PROGRAMS RECREATION DAVID HART 6/28/2024 $ 22.04 CHET’S HARDWARE SUPPLIES: PARK FACILITIES RECREATIONDAVID HART 7/1/2024 $ 3,001.46 EBAY SUPPLIES: CONTRACT SERVICES JUJITSU RECREATION DAVID HART 7/1/2024 $ 10.96 VONS SUPPLIES: DAY CAMP RECREATIONFRANCIS 6/18/2024 $ 199.00 NEOGOV ADVERTISING: IT MANAGER ADMINISTRATION FRANCIS 6/24/2024 $ 89.99 FS* ANGELCAM OPERATION COSTS: IT ADMINISTRATIONFRANCIS 7/1/2024 $ 18.83 CHETS HARDWARE SUPPLIES: TRAINING ADMINISTRATIONFRANCIS 7/1/2024 $ 22.30 CHET’S HARDWARE SUPPLIES: TRAINING ADMINISTRATION FRANCIS 7/1/2024 $ 121.22 5p MILOW SNOW AND SKATE SUNGLESSES PER MOU ADMINISTRATION FRANCIS 7/1/2024 $ 120.00 DUO.COM OPERATION COSTS: IT ADMINISTRATION CAMPBELL 6/26/2024 $ 520.00 LINKEDIN JOB ADVERTISING: IT MANAGER ADMINISTRATION SCHMIDT 6/18/2024 $ 115.20 SHOES FOR CREWS UNIFORMS: MOU HARBOR SCHMIDT 6/19/2024 $ 98.90 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES HARBOR SCHMIDT 6/19/2024 $ 74.97 AMERICAN LIFEGUARD PRODUCTS SUPPLIES HARBORSCHMIDT 6/21/2024 $ 102.33 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES HARBORSCHMIDT 7/1/2024 $ 560.18 BLADE HO UNIFORMS: MOU HARBOR $ 9,978.60 CHECK NUMBERS 38338 -38339
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID JUNE 7, 2024
June 18, 2024
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT BAKER 7/4/2024 $ 384.70 ZOOM SUBSCRIPTION: IT FINANCE
DAVID HART 7/3/2024 $ 385.00 SWANK MOTION PICTURES MOVIE: SUMMER PROGRAMS RECREATION DAVID HART 7/4/2024 $ 13.19 CHETS HARDWARE SUPPLIES: SPECIAL EVENTS RECREATION DAVID HART 7/4/2024 $ 254.00 EL GALLEON MEAL: 4TH OF JULY SET UP RECREATION DAVID HART 7/5/2024 $ 17.59 CHETS HARDWARE SUPPLIES: SPECIAL EVENTS RECREATION DAVID HART 7/8/2024 $ 87.35 VONS SUPPLIES: 4TH OF JULY BAND (RIDER) RECREATIONDAVID HART 7/8/2024 $ 28.18 VONS SUPPLIES: 4TH OF JULY RECREATION DAVID HART 7/11/2024 $ 385.00 SWANK MOTION PICTURES MOVIE: SUMMER PROGRAMS RECREATION DAVID HART 7/12/2024 $ 36.28 VONS SUPPLIES: SPECIAL EVENTS RECREATION ALEGRIA 7/5/2024 $ 85.41 VONS MEAL: 4TH OF JULY FIRE
ALEGRIA 7/5/2024 $ 2,839.96 MDI SALES SUPPLIES: FIRE HOSE FIRE ALEGRIA 7/8/2024 $ 120.78 VONS MEAL: 4TH OF JULY FIRE
ALEGRIA 7/10/2024 $ 230.98 COSTCO SUPPLIES: ICE MAKER FIRE ALEGRIA 7/12/2024 $ 15.00 NORCAL FPO FIRE PREVENTION TRAINING FIRE ALEGRIA 7/12/2024 $ 400.00 CALIFORNIA FIRE CHIEFS ASSOCATION MEMBERSHIP FIRE ALEGRIA 7/12/2024 $ 1,350.00 LOSANGELESAREAFIRECHIEFSASSOCATION TRAINING: CONFERANCE FIREALEGRIA 7/15/2024 $ 130.28 THE LOBSTER TRAP MEAL: CAPTAIN & CHIEFS MEETING FIRE CARSTARPHEN 7/3/2024 $ 48.15 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE HARBOR CARSTARPHEN 7/5/2024 $ 29.65 CHET’S HARDWARE MAINTENANCE OF PREMISES HARBOR CARSTARPHEN 7/8/2024 $ 24.79 CHET’S HARDWARE MAINTENANCE OF PREMISES HARBOR CARSTARPHEN 7/11/2024 $ 19.00 SENDHUB SUBSCRIPTION: IT HARBOR CAMPBELL 7/9/2024 $ 520.00 LINKEDIN JOB ADVERTISING: IT MANAGER ADMINISTRATION CAMPBELL 7/12/2024 $ 14.99 CANVA SUBSCRIPTION: IT ADMINISTRATION SCHMIDT 7/8/2024 $ 30.55 CHET’S HARDWARE MAINTENANCE OF PREMISES HARBOR SCHMIDT 7/12/2024 $ 23.76 VONS SUPPLIES: OFFICE HARBOR
SCHMIDT 7/15/2024 $ 12.99 CANVA SUBSCRIPTION: IT HARBOR $ 7,487.58 CHECK NUMBER 38385
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM:
________
ORIGINATING DEP: Finance CITY MANAGER:
_______
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Fiscal Year 2023-2024 Fourth Quarter Treasurer’s ReportRECOMMENDED ACTION(S): Adopt the resolution accepting the FY23-24 Fourth Quarter Treasurer’s Report.
REPORT SUMMARY: State and Municipal Codes require the Treasurer to submit within 30 days following each fiscal quarter a report summarizing the City’s cash and investmentbalances. Attached is the Fourth Quarter Treasurer’s Report for FY23-24. The report was shared with the City Treasurer prior to presentation to City Council.
The purpose of the report is to inform, on a quarterly basis, the City’s cash and investment balances, the investment types, yields, and market values, and to ensure that the City’s investments are in compliance with the City’s adopted investment policy. The report shows that all of the City’s funds are in compliance with its investment policy. In general, operating cash is held in US Bank checking accounts and any excess cash is invested in California’s Local Agency Investment Fund (LAIF) and various certificates of deposit (CDs). In accordance with Government Code sections 16429.1 and 53601 et seq., the City cannot invest more than 30% of its portfolio in CDs. CDs accounted for 16.1% of the unrestricted cash and investments for the quarter ended June 30, 2024.
On May 16, 2024, the City reinvested $5,207,200 in funds from maturing Treasury Bills into new six month Treasury Bills with an estimated yield to maturity of 5.07%. The investment should yield the City approximately $15,000 more than if the funds were held in LAIF over thesame period. The City also reinvested the three CDs that matured during the quarter into new CDs maturing in 3-4 years with estimated yields between 4.43% - 4.72%. The City takes a ladder approach with staggered maturities for its CD investments to balance its goals of highrates in the short-term with stability to withstand market fluctuations in the longer-term. The City will continue to assess for opportunities to increase its investment returns while maintaining necessary liquidity and compliance with its investment policy.
The unrestricted cash balance for the fourth quarter of 2023-2024 totaled $26.1 million, an increase of $2.9 million from the third quarter of 2023-2024. The unrestricted cash balanceincludes cash from enterprise funds (e.g. Harbor, Sewer, Saltwater, and Solid Waste) not available for general government functions. The increase in unrestricted cash is partially attributable to the seasonality of visitor-driven tax revenues and the timing of significant capitaloutlays anticipated to increase during the next fiscal year. While the majority of grant funding is performed on a cash reimbursement basis, the unrestricted cash and investments balance also includes $2 million in grant pre-funding received in preparation for construction of the second phase of the Cabrillo Mole Ferry Improvement project. The unrestricted cash balance increased by $4.9 million compared to the fourth quarter of 2022-2023. The increase in unrestricted cash balance from the prior fiscal year is attributable to visitor-driven tax revenues exceeding budget estimates, the aforementioned grant-prefunding, and due to the timing ofsignificant capital outlays. The City expects to begin construction on several major capital projects, including the second phase of the Cabrillo Mole Ferry Terminal rehabilitation and the Five Corners Pedestrian Improvement project, during the fiscal year which will reduce future unrestricted cash balances.
Below is a chart comparing unrestricted cash balances from the first quarter of Fiscal Year 2015-2016 to the fourth quarter of Fiscal Year 2023-2024.
Unrestricted Cash Balance
$30
$25
$20
$15
$10 I H Imnmm1u
S <
The restricted cash balance for the fourth quarter of 2023-2024 totaled $1 1.9 million, an increase of $2.0 million from the third quarter of 2023-2024. The increase is largely attributable to the timing of the Successor Agency’s Redevelopment Property Tax Trust Fund (RPTTF) payments received in June to cover debt service payments due in September 2023. Therestricted cash balance increased by $1.1 million from the fourth quarter 2022-2023 primarily as a result of investment gains in the Housing Authority’s LAIF account of $195 thousand, net contributions to the CIMC Improvement Fund of $555 thousand and contributions and investment gains in the City’s landfill trust account of $380 thousand.GOAL ALIGNMENT: Required disclosures.
FISCAL IMPACTS: None
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS:
1. FY23-24 Fourth Quarter Treasurer’s Report
2. CD Investment Reports
3. Resolution to Accept the Report
CITY OFAVALON
QUARTERLY TREASURER’S REPORT
FOURTH QUARTER ENDED JUNE30, 2024
NAME OF ISSUER)TYPE OF IN VESTMENT
UNRESTRICTED CASH AND INVESTMENTS
US BANK - GENERAL CHECKING ACCOUNTUS BANK - PAYROLL ACCOUNT
US BANK - FLEX BENEFITS ACCOUNTPROEQUITIES - VARIOUS CERTIFICATES OF DEPOSITS (ALL COS ARE FOIC INSURED)MULTI-BANK SECURITIES - VARIOUS CERTIFICATES OF DEPOSIT: $8,595,385.94 (ALL CDS ARE FDIC INSURED)
L.,6IF - GENERAL ACCOUNT 14952360.38
(CA LOCAL AGENCY INVESTMENT FUND)
TOTAL UNRESTRICTED CASH AND INVESTMENTS S 26,367,745.63 RESTRICTED ACCOUNTSt
US BANK - FLEX BENEFITS ACCOUNTUS BANK - HOUSING AUTHORITY (LOW MODERATE INCOME HOUSING)
LAIF - HOUSING AUTHORITY
US BANK - SUCCESSOR AGENCY TO ACIA
I,AIF - SUCCESSOR AGENCY TO AdA
US BANK (AS TRUSTEE) - SUCCESSOR AGENCY
21103 REFUNDING BONDS DEBT SERVICE - SERIES A21)15 REFUNDING BONDS DEBT SERVICE - SERIES A & BUS BANK - CIMC IMPROVEMENT PUND
NORTIIERN TRUST - CALRECYCLE
33,674.19
1,617,420.98
660,088.82
03,287,428.71
BANK BALANCE Outstanding Checks Deposils In Transit BALANCE ANNUAL
YIELD
33,674.19 0.00%
1,617,420.98 0.00%
714,539.85 0.00%
3,287,428.71
MARKET
MATURITY VALUE
On demand 33,674.19On demand 1,6 17,420.98On demand 660,088,82 3,287.428.71
PEI’TY CASH
$ 1,590,477.38 (842,632.46)
275,502.94
9,264.54
500.00
S94 4,246.45
630,173.71 S 1,378,018.63 0.00%
249.98 275,752.92 0.00% - 9,264.54 0.00% - 000.00 000%
On demand $ 1,378,01063On demand 275,752.92On demand 9,264.54On demand 500.00 944,246.45 3.45% 0 -5 years 944,246.45
8,595,385.94 3.45% 0-5 years 8,595,385,94 - 14,952,368.38 4.48% S 26,155036.86 - 37,047.63 0.00% - 1,584,147.41 0.00% 37,047,63 1,584,147.41 3,907,257.42
458,935.26
24,782.60
On demand 14,897,284 40
5 26,100,452.96
On demand 37,047.63On demand 1,584,147.41
CALPERS CERBT TRUST
3,907,257.42 4.48% On demand 3,892,863 25
(3,150.00) 455,785.26 0.00% - 24,782.60 4.48%
54,751.03
On demand 455.785,26On demand 24,691.30
0337,872,56
TOTAL RESTRCITED ACCOUNTS S 11,948,655,56 S 12,000,256,61 TOTAL BALANCE OF ALL ACCOUNTS 5 38,316,481.21 S 38,155,793,47 337,872,56 337,872. 56
S 11,931,020,11
S 38,031,473.07
(hider tile provision of Section 53646 of the California Govcnui,cnt Code, tile Treasurer or Clod Fiscal Ollicer shall render a report to the City Council and City Manager, at least quarterly, detailing information on al( seenrities, inueslments and oloocla of the City. The City is able to meet its anticipated espeoditore requirements for the nest six months. This quarterly report complies esills the current lne’estrnent Policy adopted by the City Council on June 20, 2023.
Ols-r Date
Malt civ Bake - ‘inanee Director Date
City of Avalon Investments
Certificates of Deposit
Report Date: 6/30/2024
Subtotal $ 4,190,000 $ 4,098,252.99 $ 144,470 3.45%
US Treasury
Dealer Settled Quantity Market Price Market Value Ettimated Estimated Yield Maturity Date Days to CUSIP Bank Name Income Maturity Multi-Bank Securities, Inc. 05/16/2024 $ 5,337,000 98.0530 5,233,089 $ 129,800 5.07% 11/14/2024 137 912797L07 United Statea Treasury Bill Subtotal $ 5,337,000 $ 5,233,089 $ 129,800 507%
Cash
Protquitiea, Inc. Cash $ 18.99 $ 16.99
Multi-Bank Securities, Inc. cash $ 200,144,45 $ 200,144.45 Total $ 9,531,503.04
Dealer Estimated Days to Settled Quantity Market Price Market Value Estimated Yield Maturity Date Annual Income Maturity CIJslP Bank Name ProEqaities, Inc. 04/13/2021 248,000 92.S820 229,603.36 2,480.00 1.11% 4/13/2026 652 OS600XCP3 BMO Harris Bank Protquities, Inc. 04/14/2021 247,000 92.4480 228,346.S6 2,346.S0 1.06% 4/14/2026 6S3 066519QV4 BankUnited Protquities, Inc. 07/14/2021 249,000 98.S790 245,461.71 1,369.S0 0.57% 7/15/2024 iS 79S4S07B5 Sallie Mae Bank ProEquitias, Inc. 12/10/2021 248,000 93.8260 232,688.48 2,728.00 1.20% 12/10/2025 528 BS62BSZLB State Bank of India Multi-Bank Securit:es, Inc. 10/05/2022 246,000 99.1220 243,840.12 10,824.00 4.43% 10/6/2025 463 02SB9AE24 American tepress Multi-Bank Securit:es, Inc. 10/07/2022 246,000 99.1280 243,854.88 10,824.00 4.43% 10/7/2025 464 92891CCQ3 Vyatar credit Union Multi-Bank Securitiet, Inc. 12/29/2022 246,000 98.3340 241,901.64 9,840.00 4.06% 6/30/2026 730 OBO63HPM9 Bank of Baroda Multi-tank Securities, Inc. 12/30/2022 246,000 97.B8BO 240,312.4B 9,594.00 3.99% 12/30/2026 913 OS76SLBT3 Balboa Thrift & Loan Multi-tank Securities, Inc. 04/14/2022 246,000 94.33S0 232,064.10 6,642.00 2.86% 4/14/2027 1,018 B716SFK4S Synchrony Bank Multi-Bank Securities, Inc. 04/29/2022 246,000 94.5030 232,477.38 6,8BB.00 2.96% 4/29/2027 1,033 39573L0E5 Greenstate CR UN Multi-Bank Securities, Inc. 4/30/2024 246,000 99.5290 244,841.34 11,562.00 4.72% 7/30/2027 1,12S B54062LX4 Nicolet National Bank Multi-Bank Securities, Inc. 12/30/2022 246,000 100.5880 247,446.48 12,177.00 4.92% 12/30/2027 1,278 O1BS2MAB8 Alliant credit Union Multi-Bank Securities, Inc. 04/19/2024 246,000 99.S000 244,770.00 11,193.00 4.57% 4/19/2028 1,389 910286H55 United Fidelity tank FSB Multi-Bank Securities, Inc. 5/22/2024 246,000 99.9190 24S,B00.74 11,439.00 4.65% S/22/2028 1,422 O71B1JBGB Batter credit Union Multi-Bank Securities, Inc. 06/07/2023 246,000 101.40B0 249,463.69 11,070.00 4.43% 6/7/2028 1,438 9173S2AH9 Utah community credit Union Multi-Bank Securities, Inc. 10/23/2023 246,000 101.9320 250,752.72 12,546.00 5.00% 10/23/2028 1,576 291916AG9 Empower Federal Credit Union Multi-Bank Securities, Inc. 12/12/2023 246,000 99.4420 244,627.32 10,947.00 4.47% 12/12/2028 1,626 949764iM7 Wells ferBo Bank All of the Certificate of Deposits listed aboue are FOIC insured up to $2S0,000 each.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AVALON/SUCCESSOR AGENCY TO THE AVALON
COMMUNITY IMPROVEMENT AGENCY ADOPTING
THE TREASURER’S INVESTMENT REPORT FOR
FISCAL YEAR 2023/2024 FOURTH QUARTER
The City Council of the City of AvalonlSuccessor Agency does determine, find and resolve as follows:
Section 1. The Fiscal Year 2023 -2024 Fourth Quarter Treasurer’s Report is hereby adopted and approved.
PASSED, APPROVED AND ADOPTED this 6th day of August, 2024.
Ann Marshall -Mayor
ATTEST:
Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: S
ORIGINATING DEP: Community Services CITY MANAGER:
______
PREPARED BY: David Hart, Community Services Manager
SUBJECT: Declare Surplus Equipment
RECOMMENDED ACTION(S): Adopt a resolution declaring equipment listed in the resolution as surplus property and authorize the City Manager to dispose of it in accordance with City policy.
REPORT SUMMARY: Historically, the City Council is presented with a list of items that are surplus, the Council formally declares the items as surplus, and then the declared items aresold via Public Surplus, donated to charity, or disposed of properly. Staff have complied a list of equipment that is no longer used:
Equipment Make Department
The Cliff Wibit Community Services
The Bridge Wibit Community ServicesThe Hurdle Wibit Community Services The Slope Wibit Community Services
Wiggle Boards Wibit Community Services
End Blocks to Wiggle boards Wibit Community ServicesEnd Blocks to Wiggle boards Wibit Community Services Base w/Step up Wibit Community Services
Base w/Step up Wibit Community Services
Sandwich table Avantco Community Services
2 Burner stove top Avantco Community Services
Flat Top Griddle Avantco Community Services
FISCAL IMPACTS: Unknown.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will have in their possession old equipment that will fill much needed storage space FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda.
ATTACHMENTS: Resolution.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AVALON DECLARING SPECIFIED EQUIPMENT
TO BE SURPLUS AND AUTHORIZING
THE SALE OR DISPOSAL THEREOF
WHEREAS, Government Code Section 37350 authorizes the City Council to control and dispose of property for the common benefit; and WHEREAS, the City Council wishes to declare certain equipment to be surplus and has determined that sale or disposal, as indicated below, is appropriate and will benefit the City:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON
DECLARES, FINDS AND RESOLVES AS FOLLOWS:
Section 1. The City Council hereby declares the following equipment to no longer be useful or necessary to the City’s services and programs and therefore surplus property, to be disposed of as indicated below:
Equipment Make Department
The Cliff Wibit Community Services
The Bridge Wibit Community Services
The Hurdle Wibit Community ServicesThe Slope Wibit Community Services Wiggle Boards Wibit Community Services
End Blocks to Wiggle boards Wibit Community Services
End Blocks to Wiggle boards Wibit Community ServicesBase w/Step up Wibit Community Services Base w/Step up Wibit Community Services
Sandwich table Avantco Community Services
2 Burner stove top Avantco Community Services
Flat Top Griddle Avantco Community Services
Section 2. Staff is authorized to dispose of the listed equipment in accordance with the foregoing provisions.
PASSED, APPROVED AND ADOPTED this 6th day of Aug 2024.
Ayes:
Noes:
Absent:Abstain:
Ann H. Marshall, Mayor
ATTEST:
Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: (0
ORIGINATING DEP: Administration CITY MANAGER:
PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Buffalo Nickel Transportation Permit Renewal
RECOMMENDED ACTION(S): Approve the renewal of a Transportation Permit for Buffalo Nickel with stated conditions.
REPORT SUMMARY: According to Avalon Municipal Code (AMC) §5-14.04, initial Transportation Permits are valid for a period of three years and may be renewed for subsequent three-year periods.
Buffalo Nickel’s renewal request includes a change in pick-up/drop-off location to the passenger loading zone at 107 Pebbly Beach Road (originally in front of the Trailhead).
No. of Capacity Business Service Description Type Vehicles Each Guest Transport Toyota Buffalo Nickel 1 8 10:00 am — 10:00 pm Sienna If approved by the City Council, the applicant must additionally meet and adhere to the following conditions before a permit may be issued and maintained:
• Agree to limit transportation hours as listed above.
• Agree to limit vehicle parking to a maximum of 3 minutes to allow for the active loading/unloading of passengers in the passenger loading zone at 107 Pebbly Beach Road.
• Maintain an active City of Avalon business license.
• Maintain current City of Avalon Vehicle permit(s).
• Provide proof of insurance per the Avalon Municipal Code.
Renewals to be evaluated by the Vehicle Clerk to ensure compliance every three years per the Avalon Municipal Code.
FISCAL IMPACTS: None.
GOAL ALIGNMENT: Improved Business Process
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Buffalo Nickel will continue to have an expired Transportation Permit.
FOLLOW UP ACTION: Notify applicant and issue approved transportation permits.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
. Transportation Permit Application
Transportation Permit “
07/18/2024 11:10AM (PDT)
CITY OF AVALON
F .FX
AVAUN. (A97F
Transportation Permit
Business Name Buffalo Nickel Resuaurant
Applicant First Name TonyApplicant Last Name Rubio
Mailing Address P0 Box 1830
City Avalon
State CA
Zip Code 90704
Phone 310-510-1223Email buffalonickelrestaurantgmail.comBusiness Physical Address 57 Pebbly Beach Road City AvalonState CA
Zip Code 90704
Is the business a corporation? No
Nature of Business
Describe the nature of business Full Restaurant seeking to receive approval of a Transportation Permit to pick (Explain extent, character and up and drop off guests.
manner in which proposed
operation is to be conducted)
Vehicles to be used
j. Vehicle Year
2011
Vehicle ModelToyota
Body Type
Sienna
Vehicle License Number
7WHL853Vehicle Capacity
8 Is this vehicle currently permitted in Avalon?
Yes, Commercial Vehicle
Proposed Dates/Hours of 10:00AM - 10:00PM
Operation
Describe Routes Brown’s Bikes to Buffalo Nickel Restaurant, seeking approval to pick up senior citizens to residential homes.
How will you remit payment? Cash/Check by Mail or In Person at City Hall (Please note a 3% convenience
fee is assessed on all credit card
payments)
.Make Check Payable to City of Avalon...
Payment may be made by mail at:P0 Box 707
Avalon, CA 90704
Payment may be in person at:
410 Avalon Canyon Road
Avalon, CA 90704
Please note, application will not be processed until the application fee is paid.
By affixing your signature in the box below, you agree that such signature will be the electronic representation of your signature to be valid and binding upon you for all purposes when you (or your agent) affix below, including on legally binding contracts, just the same as a hand-written signature.
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: El
ORIGINATING DEP: Administration CITY MANAGER: 4k./ç
PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Contract Award to Olyns, Inc. for Reverse Vending MachineRECOMMENDED ACTION(S): Award a contract to Olyns Inc. for procurement of (1)reverse vending machine (RVM), including software, maintenance, and advertising services, in an amount not-to-exceed $35,000; and, authorize the City Manager toexecute the contract and any related documents.
BACKGROUND: The City of Avalon is committed to enhancing its waste diversion and recycling efforts to promote sustainability and environmental stewardship. To support these goals, City staff issued a Request for Proposal (REP) for the procurement of a reverse vending machine. The RFP process included issuing a public notice, receivingproposals, and evaluating them through a panel review and presentation process.
The REP was issued on July 5, 2024 inviting proposals for the supply and maintenance of one reverse vending machine. The City received two proposals.
Vendor RVM Size RVM Annual - Advertisement Purchase Maintenance Revenue Mitchell 90”x48”x48” $31,125 $9.625 Est. $3,650 Logistics Annually Olyns, Inc. 70.5”x48.5”x 36” $26,900 $7,140 30% Revenue Share A selection panel reviewed the proposals based on criteria including machine specifications, experience and competence, proposed methodology, and cost. Both vendors were invited to present on submitted proposals, allowing the panel to gain a deeper understanding of the offered solutions.
Based on the review and evaluation process, Olyns Inc. was selected as the preferred vendor due to their comprehensive proposal, experience, and the technical capabilities of the Olyns Cube RVM. Key features include:
• Al-Based Identification: Accurate redemption of CRV deposits through Al-based container identification.
• High-Capacity Storage: Proprietary crusher with high-capacity storage bins for plastic, aluminum, and glass, which allows for a smaller footprint. • User-Friendly Interface: Multilingual support and a user-friendly interface. • Real-Time Data: Real-time data transmission for monitoring and reporting. • Mobile Application: Olyns mobile application allows for CRV electronic pay outs via PayPal, customer support, competition among users, and detailed records. • Revenue Generation: The Olyns Cube include a 55” hi-definition video screen that can be used for advertisements, generating additional revenue to subsidize the costs of recycling and potentially expand RVM deployment. • Maintenance: Olyns to provide regular preventive maintenance, cleaning, and supplies to ensure optimal functionality. The Olyns application will allow for CR&R to be notified when the Cube is full, allowing for timely collection. • Timeline: The estimated implementation is for October 2024.
If approved, City staff will work with CR&R for the collection of recyclable materials from the RVM, transport to the mainland for processing, and agreement with Olyns Inc. for CRV funding transfer. In addition, City staff and CR&R will work on recycling center regulatory approvals through CalRecyle.
Awarding the contract to Olyns Inc. for the procurement of one reverse vending machine will enhance the City’s sustainability goals. If well received, additional RVMs may then be implemented elsewhere. City staff recommend City Council approve the contract award and authorize the City Manager to execute the necessary documents.
FISCAL IMPACTS: The total cost for the procurement and installation of the Olyns Cube is not-to-exceed $35,000 for the first year. At this time it is unknown how advertisement revenue will off-set annual maintenance fees. City staff will return to Council with updates when known. Funding for this project has been allocated in the current fiscal year’s budget under 13225-6547.
GOAL ALIGNMENT: Sustainability.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Community members continue to have limited CRV redemption options.
FOLLOW UP ACTION: Execute a contract with Olyns, Inc.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
• Olyns Proposal
0lyns
REVERSE VENDING MACHINE PROCUREMENT
CITY OF AVALON RFP RESPONSEPrepared for: Prepared for the City of Avalon Submitted by: Olyns Inc.
Date: Thursday, July 11 2024
0lyns
TABLE OF CONTENTSCITY OF AVALON RFP RESPONSE 1
TABLE OF CONTENTS 2
EXECUTIVE SUMMARY 3
PROPOSAL TITLE SHEET 6MACHINE SPECIFICATIONS 7
STAFFING RESOURCES 9
EXPERIENCE AND TECHNICAL COMPETENCE 10
PROPOSED METHOD TO ACCOMPLISH THE WORK 11FEE PROPOSAL 18 INSURANCE 19
LITIGATION 20
OTHER INFORMATION 21
APPENDIX 1 - SAMPLE DATA REPORTS 22
APPENDIX 2 - MATERIAL QUALITY 24
0lyns
EXECUTIVE SUMMARY
Dear Members of the Selection Committee,
We are pleased to submit our proposal for the procurement of one (1) Reverse Vending Machine (RVM)for the City of Avalon. Our company, Olyns Inc (Olyns), is well-equipped to provide the required services, including back-office software management, regular on-site maintenance, and the provision of advertisement space on the machine.
Company Overview
Olyns is a Silicon Valley based technology company focusing on the implementation of a new paradigm for recycling. Combining Al-enabled lOT hardware, innovative software and advertising demand, Olynsenables our clients to save money, focus on core business and provide a highly desirable consumerservice while remaining in full compliance with all state and federal regulations. Our mission is to support communities in their efforts to enhance sustainability and environmental stewardship.Our RVM, the Olyns Cube, is used by some of the most popular grocery chains in California includingSafeways, Albertsons, Smart & Final, FoodMaxx, Lucky and many others. Outside of California, we have installations with the Oregon Beverage Recycling Cooperative, at the State Capital in Georgia and we were asked to install 2 Cubes at the White House during the annual Easter Egg Roll. Our deep partnerships with Coca Cola and Pepsi Cola are expanding the Olyns Cube network to recycling desertsin Texas and Georgia.
Project Understanding
The City of Avalon, situated on Catalina Island, requires an RVM to facilitate CRV redemption for plastic, glass, and aluminum beverage containers. This initiative aligns with Avalon’s commitment tosustainability and environmental protection. With a permanent population of approximately 3,500 andover one million annual visitors, the RVM will serve both residents and tourists, contributing to the City’srecycling goals and waste management efficiency.
PROPOSED SOLUTION
1. Reverse Vending Machine Specifications
Our proposed RVM model, the Olyns Cube, is designed to handle high volumes of plastic, glass, andaluminum beverage containers. Key features include:
0lyns
o User-friendly interface with multilingual support.
Al based container identification for accurate redemption of CRV deposit. o Proprietary crusher with high-capacity storage bins for plastic, aluminum cans and glass bottles. o Attractive and durable design suitable for outdoor and high-traffic areas. o Real-time data transmission to back-office software for monitoring and reporting.
2. Back-Office Software Management
We offer a comprehensive software solution that provides:
o Real-time monitoring of machine status and fill levels o Automated alerts for maintenance and bin emptyingo Detailed reporting on usage statistics and redemption values° Remote configuration and software updates
3. Maintenance Services
Regular on-site maintenance will be provided by our trained technicians, ensuring the RVM operates smoothly and efficiently. Our maintenance services include:
Scheduled maintenance visits
Prompt response to service calls - please see Appendix 1 for Service Level Agreements o Preventative maintenance to minimize downtime
4. Advertisement Space
Our RVM includes a 55” hi-definition video screen for customizable advertisement space. The screencan be utilized to generate additional revenue or promote community events and initiatives. We offerdesign services to ensure high-quality and impactful advertisements.
IMPLEMENTATION PLANPhase 1: Planning
0lyns
Initial consultation with City representatives to finalize specifications, installation location and requirements.
Site survey to ensure that the chosen installation site can meet the necessary power and connectivity requirements.
Phase 2: Installation
Delivery and installation of the RVM at the designated location Testing and commissioning to ensure optimal performance Phase 3: Training and Support
Training for City staff and CR&R on RVM operation and software management Ongoing technical support and customer service
Conclusion
Olyns is committed to delivering a high-quality reverse vending machine solution that meets the needsof the City of Avalon. We are confident in our ability to contribute to Avalon’s sustainability goals andenhance its waste management infrastructure. We look forward to the opportunity to work with you on this important project.
Thank you for considering our proposal. Please feel free to contact us if you have any questions or require further information.
Sincerely,
4dLJ
Carol Gilliland
Head of Business Development
Olyns [email protected]
0lyns
PROPOSAL TITLE SHEET
CITY OF AVALON - REQUEST FOR PROPOSAL
REVERSE VENDING MACHINE PROCUREMENT
Closing Date & Time: Friday, July 19, 2024 by 2:00 pm
Today’s Date: Wednesday, July 17, 2024
The undersigned hereby submits its proposal and, by doing so, agrees to furnish servicesto the City in accordance with the Request for Proposal (RFP), and to be bound by theterms and conditions of the RFP.
Name of Firm: Olyns Tech
Legal Name: Olyns Inc. (DBA Olyns Tech)Business Type: Corporation No. Total Employees: 20Mailing Address: 2968 Scott BIvd, Santa Clara, CA 95054 Phone Number: 408-348-2178
E-Mail: [email protected]
Contact Name: Philip Stanger
Title: CEOSignature:
Date: Wednesday, July 17, 2024
0lyns
MACHINE SPECIFICATIONS
Olyns Cube
The Cube delivers the following features:
° Artificial Intelligence (Al) for identifying, sorting and crushing CRV applicable containers. o Stores 3 different types of container and has a capacity of over 2,000 containers (crushed).
Unmissable 55’ retail media display and player on the front of the Cube generates advertising revenue to subsidize the costs of recycling and to promote sustainability. o Brushed aluminum sheet provides attractive and easy to main protection for internal electronics Designed for ease of maintenance, emptying and servicing.
70.5 Inch
44.5 Inch
36 Inch
48.5 Inch 36 Inch 48 Inch
Requirements
114 Inch
‘10 5lO0 011100:
48 inches
P 0- I- I -II IGFCI OulIloor P1010 lion
Specifications
Capacity
2200 3
SOpCrrC,l0 Bins
Weight
1050 Lbs 1170 Lbs
() connectivity
LYE, WiFI, NFC User interface
Screen
12’ LCD 55’ HO, 4Mbps bIt rate, aspect ratio: 16:9
0:9001 A0100lIi0log
çJ Advertisements
15 second duration, 8 per loop MP4, JPG, PNG, PDF
OO0 rod rile P0,001
* Specifications may be subject to changeOlyns Customer App Free downloadable app (iOS & Android) enables users to login to the Cube, make CRV deposits and redeem their CRV deposits electronically. Key features include:
o Accumulates cash and rewards points from the deposited CRy.o Enables users to cash out electronically via PayPal.o Provides the user with a record of all their deposits.o Provides 12 hour per day customer support with integrated chat, phone and email functions,
o Provides users with a positive record of their environmental impact. o Enables users to compete with other users.
Location Electrical - - 20A 120V - I’ ::O, Suppil
General
Outdoor Rated (lP5)
ADA Compliant
12.125 PET, Aluminum, Glass lOoz to 2L Embedded Compactor cc )30:lii0iCi:1: I 000010011 0010,00, -lie 3 11i111l #1 IlOhifli, 0, 4P, .1
Olyns
$144.59 530
OO;
®
STAFFING RESOURCES
Olyns staffing on this project is as follows:
Business contact: Carol Gilliland, [email protected]
Operations and logistics: Whit Fowler, [email protected]
Field technician: Quinn Sowells, [email protected]
Customer / user service: Christine Freeman, [email protected] & PR: Lise Murphy, [email protected] Ad operations: Hannah Egan, [email protected] sales: Eddie Smith, [email protected]
EXPERIENCE AND TECHNICAL COMPETENCE
Olyns is a Silicon Valley based technology company founded in 2019. We focus on the implementationof a new paradigm for recycling. Combining Al-enabled lOT hardware, innovative software andadvertising demand, Olyns enables our clients to save money, focus on core business and provide ahighly desirable consumer service while remaining in full compliance with all state and federal regulations. Our mission is to support communities in their efforts to enhance sustainability andenvironmental stewardship.Our RVM, the Olyns Cube, is used by some of the most popular grocery chains in California including Safeways, Albertsons, Smart & Final, FoodMaxx, Lucky and many others. Outside of California, we have installations with the Oregon Beverage Recycling Cooperative, at the State Capital in Georgia and 2 Cubes at the White House during the annual Easter Egg Roll, Our deep partnerships with Coca Colaand Pepsi Cola are expanding the Olyns Cube network throughout the US.
Key personnel include:
Philip Stanger, co-founder and CEO of Olyns, is a technology executive previously from Apple where he was awarded 2 USPTO patents for this innovative work on iOS 11. Philip holds a Bachelors degree from Johns Hopkins and a Masters from Yale University.
John Buchowski, co-founder and GPO of Olyns, is a technology executive previously from IHS Markit with a background and degree in aerospace engineering from the University of Minnesota.
Whit Fowler is Senior Director of Operational Strategy at Olyns. He was previously the Director ofOperations at Hillman Solutions and holds a Master of Science and PhD in Mechanical Engineering from Stanford University.
Tad Doxsee is Head of Software. Tad is a veteran technologist and software engineer. He holds a Bachelors degree from Yale University as well as a Master of Science and PhD from StanfordUniversity for aeronautical engineering.
Page lOof 24
PROPOSED METHOD TO ACCOMPLISH THE WORK
IMPLEMENTATION PLAN
Task Party Start Date End Date Days Responsible
Contract Award City 08/06/2024 08/06/2024 1
Contract Signing Olyns 08/08/2024 08/08/2024 1
Planning and Permitting
Order Olyns Cube for delivery Olyns 08/08/2024 10/07/2024 60 Identify applicable CalRecycle Convenience Zone (CZ) Olyns 08/08/2024 08/08/2024 1 Identify installation location for Cube in CZ Olyns, City, CR&R 08/08/2025 08/09/2025 2 Survey location and ensure Cube requirements are Olyns 08/09/2025 08/09/2025 1 met Apply to CalRecycle as Certified Recycler (RC) for CR&R 08/09/202 5 10/08/2024 60 Cube location Installation
CR&R is certified as an AC for Avalon CR&R 10/08/2024 10/08/2024 1 Delivery of Olyns Cube to Avalon Olyns 10/09/2024 10/11/2024 3Installation of Olyns Cube Olyns 10/11/2024 10/11/2024 1 Affix necessary CalRecycle signage CR&R 10/11/2024 10/11/2024 1 Test Cube Olyns 10/11/2024 10/11/2024 1
Training & Support
Train City staff and CR&R on RVM operation, software Olyns 10/14/2024 10/16/2024 3 management & CalRecycle reporting Establish Olyns customer support for Avalon & create Olyns 10/17/2024 10/17/2024 1 promotional program for new service Start ad campaign on Cube promoting service and Olyns 10/17/2025 10/17/2025 1 selling ads Launch Olyns Olyns, City, CR&R 10/18/2024
Notes:
1. CR&R will empty the Cube as needed when full. The Olyns sherpa app proactively notifies CR&R when the Cube is full.
2. CR&R will own the material and take all responsibility in transporting to the mainland as well as processing it.
3. Olyns will provide necessary reporting for CR&R to claim CRV reimbursement from CaiRecycle.
CR&R will reimburse Olyns for the CRV paid out to users.
SUPPORT AND MAINTENANCE
Support services agreement is defined by terms below:
1. DEFINITIONSo CalRecycle Regulations means the operating regulations derived from California’s Beverage Container Recycling and Litter Reduction Act and as utilized by California’s Department of Resources Recycling and Recovery (CalRecycle).
o CRV means the California Refund Value and is the amount paid to consumers when they recycle beverage containers at certified recycling centers.
o Escalation Path means the process as defined in 2. Support Services, Problem Management and Escalation Process
Service Level Standard means the minimum performance standard of 70 hours per week whereby the Olyns System is accepting CRV deposit from consumers in compliance with the CalRecycle Regulations.
° Olyns System is the Olyns Cube and software system that provides recycling services for clients and complies with the CalRecycle Regulations
c’ Olyns Sherpas means the team of crowd sourced service workers utilized by Olyns to empty the Olyns Cubes.
Page l2of 24
o Operating Hours means the hours during the day that the Olyns System is accepting consumers CRV deposits.
2. SUPPORT SERVICES
a) Incident Reporting
Support can be requested via the Olyns Support Desk (“OSD”) email at [email protected] or telephone at 866-472-6432.
b) Representatives
Olyns will assign client a primary Olyns Support Contact (“OSC”) that will serve as client’s primary point of contact for Tier 1 and Tier 2 support as defined below. Client acknowledges that OSD may require the assistance of client’s staff for diagnosis and problem resolution. Support Services will be provided in English only.
c) TrainingOlyns will provide training, support and supplies for client’s staff to assist any customers’ questions and requests.
d) Maintenance
Olyns will provide regularly scheduled preventive maintenance, cleaning and supplies to ensure optimal functionality of Olyns Cubes.
e) Problem Management and Escalation Process
i) The entry point into the Olyns escalation process is through the OSD. Client’srepresentative will identify the support service issue and gather initial case information prior to contacting OSD. Only designated client representatives may report an incident that requiresescalation. ii) The reporting party shall advise OSD person of the situation. iii) Once OSD person receive valid information of the situation, OSD person will determine the severity tier of the issue and, if necessary, provide the Olyns staff for further diagnosis andproblem resolution efforts. Oftentimes resolution of an issue may be completed at the time of
reporting by OSD person remotely or with help from the onsite reporting party. Issues that cannot be resolved remotely will be addressed by the dispatch of an Olyns Field Technician.iv) If the problem can be solved easily and remotely by a single support team action; the OSD person will take direct responsibility for resolving the issue. If the situation is more complex, the OSD person may escalate the issue as provided for along the Escalation Path described herein. v) For incidents that are not Tier 1 or 2, the OSD personnel will typically take direct responsibility for resolving the issue. However, if the incident is Tier 1 or 2 or if the incident ismore complex, the OSD person can assign a dedicated Olyns Field Technician utilizing theEscalation Path. Client acknowledges that before a case is escalated, Client’s designated representative will use reasonable efforts to resolve the issue. vi) Olyns will provide reasonable updates to client on the status of the issue until the incident is resolved.
vii) In the event that OSD person is unable to resolve the problem remotely and provided that the OSD person has obtained all reasonably requested assistance from client’s representatives,OSD person will dispatch a qualified Olyns Field Technician to make repairs and replacements to the Olyns System on-site (such services hereinafter referred to as a ‘Service Dispatch”. Client agrees to provide the Olyns Field Technician access to any front of house location where theOlyns Cube resides and any back of house location for access to electrical panels asnecessitated by the Olyns Field Technician. f) Criteria for Closing an Escalation
Olyns will consider the escalation closed if it meets one of the following requirements. (i) The initially agreed upon objectives have been achieved and each support representative, as applicable, has validated that the issue can be closed. (ii) A satisfactory monitoring period has elapsed without problem recurrence and each supportrepresentative, as applicable, has validated that the issue can be closed. (iii) The escalation has been reviewed and agreement reached between the Parties to downgrade the case severity level.
(iv) A mutually acceptable decision has been made that the issue cannot or will not be resolvedand this has been communicated to all Parties in writing.
g) Client Obligations
Client acknowledges the following “Client Obligations” are the responsibility of client and are not a part of the support services provided by client:
i) Electrical power, electrical connections and wiring. Electrical power supplied and required for the operation of the Olyns System and delivery of the Olyns Service, must be consistent withthe operating specifications of Schedule 2, Olyns Cube Specifications. Client acknowledgesand understands that power failures and outages, power surges, brownouts and other powerfluctuations may cause damage to the Olyns Cube and it is Client’s responsibility to regulate theelectrical power being supplied to the Olyns Cube so that such damage is not caused. Clientacknowledges that any damage caused by Client’s failure to provide such suitable power mayresult in the replacement or repair of such damaged equipment at the Client’s sole expense;ii) CaiRecycle obligations not covered by Olyns Cube, Client acknowledges and understands that Olyns Cubes do not accept CRV containers over 3 liters in capacity. Client agrees that CalRecycle Regulations require that such containers are accepted and will be accepted by client staff during Olyns Cube Operating Hours until which time they can be removed. Client further acknowledges and understands that CalRecycle Regulations provide an option for consumers to redeem their CRV deposits for cash. Client agrees to provide consumers withthis option if they choose; iii) Vandalism. Client will make reasonable attempts to protect the Olyns Cubes from vandalism. Cubes will be situated in highly visible and well lit locations, and are able to be surveilled directly or remotely;
iv) Adequate physical space. Client agrees to provide the Olyns Cubes with adequate surrounding physical space to allow access for service and maintenance as specified inSchedule 2, Olyns Cube Specifications. Olyns Cubes can be configured such that service isperformed from either the right or left side of the machine; h) Service Levels
i) Severity Levels for Response Times
1) Once an issue is submitted to Olyns, a severity level will be assigned in accordance with the descriptions listed in Severity Level Table. If there is a disagreement between Olyns and theclient as to whether the issue falls within the Support Services, Olyns shall escalate the incident
as provided in the Escalation Path to an agreed upon service level with the client representative reporting the issue. In the event that Olyns’s support team or client’s representative, as applicable, are unable to agree upon the severity level, the Parties agree to participate in an executive level meeting, which shall be attended remotely or in person by representatives of the Parties acting in good faith and with all necessary authority to resolve the dispute. For avoidance of doubt, Olyns will continue to work on remediating the issue during this severitylevel determination process. 2) Olyns shall provide client with a resolution or a temporary ‘fix” in accordance with the response times set forth in the Severity Level Table below. In the event that the issue is determined by Olyns to not be a part of the Support Services, Olyns shall notify client representative promptly and provide the rationale for such determination.
Severity Level Table
Severity Tier 1 Severity Tier 2 Severity Tier 3
Mechanical or Mechanical or
software issue that software issue that
renders the Olyns renders the Olyns
Critical to the safe System incapable of System incapable of Description use of the Olyns any applicable any applicable Cube. Service Level Service Level
Standard and that Standard and thatcannot be resolved can be resolvedremotely remotely Remote Troubleshooting 15 Minutes 30 Minutes 30 Minutes Response Status Update Interval 30 Minutes 1 Hour 2 HoursCoverage Hours 24x7, 7 Days 7:00 AM to 7:00 PM, 7:00 AM to 7:00 PM, 7 Days 5 Days Page l6of 24
ii) Olyns System Uptime
Olyns will use commercial reasonable efforts to provide the Service Level Standard. Service availability information shall be obtained from Data produced by the reporting tools generatedfrom the Olyns System and reported by Olyns. This information shall be relied upon unlesseither Party can show manifest error. i) ExcepUonsNotwithstanding anything herein to the contrary, Olyns shall be excused from the Service Level Standard commitments set forth in this agreement and from its performance obligations under the Agreement if, and to the extent that, the cause of such failure or performance issues:
I) Are due to failures of Olyns software systems suppliers such as but not limited to Amazon Web Services (AWS) or Zendesk.
ii) That result from any action or omission by client or client’s third party suppliers, or a failure by client to undertake and fulfill its client Obligations set forth in Section 2 that result from any scheduled downtime.
iii) That result from any scheduled and communicated downtime determined in advance by the Parties during operating hours.
iv) That arise from Olyns’s suspension and termination of client’s right to use the Olyns Service under the Agreement
v) That result from vandalism or burglary of the Olyns systems or components thereof.
Page l7of 24
FEE PROPOSAL
The total cost for the procurement, installation, and one year of maintenance services is $34,040. Thefollowing is a breakdown of costs:Olyns Cube (RVM) Olyns RVM includes 1 removable roller bin and 3 sets of reusable bin liners.
One-time: $26,900 purchase of Cube
Terms: 50% payable upon contract signing balance to be paid on delivery.Software & maintenance:
o User app (iOS and Android)o Collector app (iOS and Android) o Customer service and on-line helpo All user transaction fees o CalRecycle reporting
On-going maintenance of the Cube -both remote and onsite.
Monthly: $595
Terms: 1st month on contract signing, monthly invoicing from 2nd month net/30.
Revenue Share on Advertising
30% revenue share on the advertising generated with the large 55” screen. This 30% is net of anyexpenses directly related to the advertising. Revenue distributions are made quarterly and include detailed reporting.
INSURANCE
In accordance with the City’s requirements, Olyns holds the following insurance:-Commercial General Liability: $2m in aggregate and $1 m per occurrence. - Automobile Liability Insurance: $1 m for each occurrence.-Workers’ Comp: $1 m per accident.
LITIGATION
Olyns Inc (DBA Olyns Tech) is not now nor has ever been party to any litigation.
OTHER INFORMATION
Olyns has no previous involvement with the CityOlyns has no known conflicts of interest in connection with providing the Services.
APPENDIX 1 SAMPLE DATA REPORTS
Olyns records and identifies every container placed
and accepted by the Cube. Every container is
identified by type (plastic, aluminum, glass, etc),
size, brand, and product. The time and place ofdeposit is also recorded with the depositors account information.
These detailed records enable us to provide the
detailed reports that CalRecycle requires toreimburse for the outlay of CRV funds as well as any handling or processing fees that may beavailable. Please see below for data examples The data can also be structured for marketing,
management and research reports.
Cbn oo, dn,
CotS OnI OyReoyplers - Op Month •
119 a S.le..y695 1lI9
04Sep05 595 (5)
102fl 060.274057 a 245,025 695 - b.n .4 (346 2024 0505 pe, ml 6. 2024 OS 23 p0.) C041.612r
St 15 00
6240,ALU
W.tUlon Sp4l144o 02.1.1G22p2
0.05 Plogon 0)506040
1502
BlOod
P143, I9902,4’04fl5 Pil/ P4jOUI
lOosogom. 19
C.d bog
DO. 022, 2024-07-16 . 4, — 055 0512.14 ‘. -.
,6,i 16. 232405 12PM POT
ALB_99_i114o2_2024 07-1611122 26016261 0702 110 p0
!
00iiIb1iiIiI
Also, all Cube functions are monitored in real time allowing our engineers to quickly diagnose and rectify any issues that may arise with the operation of the Cube. Over 85% of these issues are rectified remotely with no requirement for a physical visit.
!LJ!41![IL:;zI
8 OA7E COOLECTOR SERVICESCOUNT REWARO R€WARDCOMPIJTEO Acrtasus 2758 Jul 15.202407 11 •s, (2158) Slewoy 1483(95) 4 I I 15 152 0’) l• 2257 Jul 15.20240705 409 (2757) 0594,1 & Fins) 327- (112) 7 369.65 265652756 J51 15.20340650 ,so (2756) 55,4,1 F,n41448 -(110) 4130 4120 2755 Jul 15.20240649 818 (2755) Salewsy 929 -(129) 1. 18610 10610 2754 Jul 15.202406488,8 (2754) S1wy919 (138) 1 5090 50002753 Jul 15.2024 0641 sm (2753) Suleway 767- (135) S 20605 206.05 2752 Jul 15.2024 06,46a1s (2752) Ss1w*y 700 (122) 2 16.40 76.40 2551 Jul 15.20240645859(2751) S8lSwSy 695- (119) 2 8200 5200 2750 Jul 55.202406450)9(2750) S.lew.y 039 (136) 1 5425 5425 2740 Jul 15. 2024 05.44 I,,, (2749) S*fewy 3251 -(49) 6 21065 210652748 Jul15. 2024 0&43 4111 (2748) 5.1859473241 (113) 4 141 55 19201 2747 Jul 15. 2024 0642 s(2747) 541510852900- (121) 2 8020 90202746 Jul 15.20240641459(2746) So(8w8y 2887 (96) 5 17025 17025 2745 Jul 15,20240641 959(27451 54580045 21)9 (5111 2 9155 9155 .lJfl*.000405’llpw
P.*8$,flflm5,0fl0 0’fl5’l44l 1144404 87.14-4594
4000,04 Su105A mm 02001041 4*10000(1) mousur000000w Itosi 00.uuou,l, 000mu,wu000nltssl TumAO fiwuuu(m) 10,44 utu,Lnm’u,001 ojflfl,00040fl31uo711101 ,uflfl4 lmu.fl?4.,.40flfl,3 104 1109 flSfl (4’ 044 1400 4049 .1l0Nl4094l&4i1fl’9h) 0.4,4.uflplflw$flfluflou.. III 40* 410 0,8 010 590 .3Orfl.0404 u0210,,,.1l’4II ..u.fl.40u4o5,79,fl4Lo0.fl 149 905 590 400 050 000 60? 0410200410504?lIOfll000 ,s9,.4onoo4o4y44fl40fl 304 410 90 0.90 00 540 ,,4I,701409000,IflllOfl) .su,.390mflpOflm(49,.u],wfl 070 440 5)5 09 110 000 90004 10.000411 4144471fl93) 4.4,.4,0.op.,m,49.1.*!4o. 00) 100* 599 010 0)0 ISO 640 n,u,000SuuIflpu.0IlI0I I*u1111391u0.4’ 00,1’ 04? 45)0 0)4 402 000 III) flu,) 95*1 4041 lm1 8,59 695 4,8 10109 41,95
APPENDIX 2 -MATERIAL QUALITY
The following is an excerpt from a letter to CalRecycle by Jeff Donlevy, Gen Mgr. Mings Recycling Corp. “Every year Ming ‘s conducts a material quality study with the Plastics Recycling Corporation of California, PRCC, to examine material from all over California. The study was conducted at the end of 2022 and included material from different facilities in California looking at PET Plastics bales.
The material quality ofAluminum, PET and Glass collected by the Olyns RVM’s is the highest quality material the Ming’s Hayward facilities receives from any of our customers. The material is clean, city (no noticeable moisture), and free of any contaminants.”
2022 BaleSort-PET OlynsRVM’s GradeA Grade B Grade BwTF
PET CRV 99% 94% 66% 47%PET Non-CRV 0% 4% 30% 23%PET Thermoform 0% 0% 1% 18%Non-PET Other Plastic 0% 1% 1% 6% PET W/Metal 0% 0% 0% 1%
Waste/Other Contaminents 1% 1% 2% 5%
Total 100% 100% 100% 100%
Clear or Light Blue 95% 89% 82% 58%
Green Bottles 4% 5% 5% 3%Color Bottles 1% 0% 1% 1%
Bottles with Full Wrap Labels 2% 4% 8% 5%
Caps Attached 68% 75% 56%
Labels Attached 100% 98% 85% - v-__’,--—-.’—.-. —, .•——.--r -
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: _________ ORIGINATING DEP: Administration CITY MANAGER: _______ PREPARED BY: Jocelyn Francis, Assistant City Manager SUBJECT: Island Enterprises, Inc. Transportation Permit Application RECOMMENDED ACTION: 1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Island Enterprises, Inc. to utilize a commercial vehicle permit to conduct tours in an oversized vehicle with stated conditions.REPORT SUMMARY: On July 10, 2024 Heather Milburn of Island Enterprises, Inc. (DBA Catalina Adventure Tours) submitted a Transportation Permit application and fee to the City of Avalon to provide interior tours with pick-up/drop-off at the Cabrillo Mole Ferry Terminal. Tourswill follow the “Inside Adventure Tour” route shown in the map submitted (currently conducted by the 2006 Econoline Van).
Island Enterprises, Inc. received approval from the Catalina Island Conservancy to run tours in the interior of the island with the 2024 GMS Ram 3500. The vehicle capacity seats a total of 25, with 22 passenger seats, and is awaiting a commercial vehicle permit hearing with the Vehicle Hearing Officer on Friday, August 23, 2024.
After meeting with the applicant, applicant has agreed to remove the 1984 American General M809 from Santa Catalina Island in favor of the 2024 GMS Ram 3500 (already purchased and on island). Island Enterprises, Inc. is offering to remove the existing 1984 American General byJanuary 2025 to allow existing City booked tours to conclude before removal. Vehicles areover 200” and considered oversized per the Avalon Municipal Code.
Year Make Model Length (est)
L2024 Ram 3500 GMS 345” (28.8’)
1984 American General M809 370” (30.8’)
Avalon Municipal Code Section (AMC) §5-14.04 requires a hearing before the City Council to determine whether a transportation permit should be approved ensuring:
• The applicant has presented facts demonstrating a necessity for the requested vehicle(s).
• The requested vehicle(s) is appropriate for the intended use and necessary, for the proper functioning of the applicant’s enterprise.
• The requested vehicle(s) will not have a deleterious impact on traffic congestion, traffic safety, noise, or air pollution.
• In view of the size and nature of the streets of the City and the character of the City itself, the requested vehicle(s) will not have a deleterious impact on the public health, safety, and welfare.
• There is no more suitable alternative vehicle than the vehicle(s) requested by the applicant that can satisfy its requirements.
If approved by the City Council, staff recommends the applicant must additionally meet the following conditions:
• Agree to limit pick-up and drop-off locations to the Cabrillo Mole.• Agree to utilize the RAM 3500 to tours of the interior of Santa Catalina Island (primarily outside the limits of the City of Avalon).
• Agree to limit transportation hours to 9:00am to 6:00pm, seven days a week.• Agree to limit vehicle parking to a maximum of 20 minutes to allow for the active loading/unloading of passengers at the Cabrillo Mole, never leaving the vehicleunaffended. • Agree to remove the 1984 American General M809 from Santa Catalina Island and show proof it was barged off island to City Vehicle Clerk by no later than January 15, 2025.
• Maintain an active City of Avalon business license.• Maintain current City of Avalon Commercial vehicle permit.• Provide proof of insurance per the Avalon Municipal Code.• Failure to fully comply with any of the foregoing conditions shall result in the revocation of the applicant’s transportation permit.
Renewals to be evaluated by the Vehicle Clerk to ensure compliance every three years.FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS:
1. Transportation Application
2. Route Map
Transportation Permit
07/10/2024 9:17 PM (PDT)
Business Name
Applicant First Name
Applicant Last Name
Mailing Address
City
State
Zip Code
Phone
EmailBusiness Physical Address
CityState
Zip Code
Is the business a corporation?
Name of corporation
Date incorporation
Place of incorporation
Address of business
c:Ty OFAVMON
Island Enterprises, Inc., DBA Catalina Adventure Tours
Heather
Milburn
PC Box 92766
Long BeachCA
908095624328828
[email protected]
5030 2nd Street, #206A
Long BeachCA
90803
Yes
Island Enterprise, Inc.
03/10/2005
CaliforniaPC Box 92766, Long Beach, CA 90809
Corporate Officer Information
I. Corporate Officer Full Name
Jeffrey SticklerCorporate Officer Age
72 Nature of Business
Describe the nature of business The nature of the business is to provide land and sea tours to tourists on Catalina (Explain extent, character and Island.manner in which proposed operation is to be conducted)
Vehicles to be used
i. Vehicle Year
2024
Vehicle ModelGMS
Body TypeRAM 3500
Vehicle License Number
1600984 (DMV Temp Drive-Away Permit)
Vehicle Capacity
25 Is this vehicle currently permitted in Avalon?
No
What type of permit will you be seeking?
Interior Commercial Vehicle
Proposed DateslHours of 365 Days a year, 9:00 AM to 8:00 PM.
Operation
Describe Routes The Dodge RAM will run the companys interior tour starting from 3020 Pebbly Beach Road, through the City of Avalon and into the interior of the island on Conservancy property. This vehicle has been approved by The Conservancy to run on their property and we have obtained a permit from them.
The route follows the yellow dotted route in the PDF attached. It has run this some route for many years now.
Route Map J Map CAT.pdf
Proposed Points of Discharge and Pick-up of Passengers
Proposed Pick-up/Drop-off
302 Pebbly Beach Road, Avalon, CA (same for pick up and drop off) How will you remit payment? Online via eCheck
(Please note a 3% convenience
fee is assessed on all credit card
payments)
Total Non-Refundable Application Fee Due: $272.00
By affixing your signature in the box below, you agree that such signature will be the electronic representation of your signature to be valid and binding upon you for all purposes when you (or your agent) affix below, including on legally binding contracts, just the same as a hand-written signature.
Signature of Applicant
Payment Details
07/10/2024 9:20 PM (PDT)
Transaction Id 9e5eOfb8-7f6e-4ae 1 -9096-3aa7 1 43b2f38 Order Number 8a1 82303-8abe-4b1 e-91 a5-1 5f4641 ccl 87Payment Type CreditDebitCard Card Number xxxx xxxx xxxx 7807
Amount $272.00
Created At 07/10/2024 9:20 PM (PDT)
‘ -
I”C
-
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: 9
ORIGINATING DEP: Administration CITY MANAGER:________
PREPARED BY: Jocelyn Francis, Assistant City ManagerSUBJECT: Contract Award to Public Sector Personnel Consultants for Total Compensation Study
RECOMMENDED ACTION(S): Award a contract to Public Sector Personnel Consultants to complete a Total Compensation Study and provide on-call consulting services, in an amount not-to-exceed $45,000; and, authorize the City Manager to execute the contractand any related documents.
REPORT SUMMARY: The City of Avalon last completed a compensation study in 2015 as part of an overall classification survey and compensation study. In the yearssubsequent to the 2015 class/comp study, the Administration, with Council approval, hasmodified the classification plan by establishing additional position descriptions and compensation for new and existing classifications.
Administration requested and Council approved funding for a market study to be completed in FY24/25. On April 16, 2024, Council authorized City staff to publish a request for proposal (RFP) seeking consultation services to conduct a “Classification and Compensation Study”. Although captioned as a class/comp study the scope of services for the RFP specifically focused on a compensation analysis by requesting prospectivefirms to “conduct a salary survey of comparison agencies, collect comparison agencydata, conduct a total compensation analysis to provide the City with an accurate assessment of how its compensation plan compares with selected labor market agencies,and finally analyze, review, and summarize data for presentation to the City.” On May 13, 2024 the RFP was issued, inviting proposals to qualified human resource consultants with the City receiving a total of eighteen. A selection panel reviewed the proposals based on experience, approach, and cost. Four consultants (Reward Strategy, AJG Gallagher, RGS, and Public Sector Personnel Consultants) completed virtual presentations on July 29, 2024.
Ranking Vendor Proposal
1 Public Sector Personnel Consultant $37,500
2 AJG — Gallagher $51,000
3 Reward Strategy Group $30,800
4 Regional Government Services $43,300
It should be noted that because the title to the RFP referenced classification and compensation study a handful of applicants also provided a cost of services to conduct aclassification study in addition to the compensation study. Those combined proposals would more than double the cost set forth in the above proposals.
Based on the review and evaluation process, Public Sector Personnel Consultants was selected as the preferred firm due to their comprehensive proposal, applicable localgovernment experience, inclusive approach, detailed presentation, twelve months ofsupport, and cost. City staff called references who confirmed positive work product. Public Sector Personnel Consultants have also agreed to provide on-call consulting services at a rate of $150 per hour for any additional consulting work to review any identifiedclassifications as needed through December 31, 2025. Therefore, staff is requesting a total contract amount not to exceed $45,000.The estimated completion date is expected by January 2025. This will allow adequatetime for staff, Council, and bargaining groups to review the reports and negotiate.
It should be noted the change in title terminology of a classification and compensation study, to a focus on total compensation study is semantics. The scope of work in the REPdid not change and all proposals received included the total compensation study pursuant to the published scope of services. Additionally, the City Manager has determined that the outside compensation study contemplated herein in addition to the internal overall review of the existing and amended classification plan is consistent with the “Maintenance Cycle” outlined in the City’s Personnel Rules and Regulations (Chapter Six: Classification;Section 4.2).
FISCAL IMPACTS: Funding of $50,000 has been allocated in the current year’s budgetunder 10135-5005 to hire a consultant to complete the survey. An updated Total Compensation Study will assist the City in determining competitive, fair and equitable wages for all City employees.
GOAL ALIGNMENT: Fiscal and organizational stability.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City may not meet stated objectives in employee bargaining group MOU5.FOLLOW UP ACTION: Execute a contract with Public Sector Personnel Consultants.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
. Public Sector Personnel Consultants Proposal
PROPOSAL TO CONDUCT A
TOTAL COMPENSATION STUDY
FOR THE
CITY OF AVALON
JUNE 2024
PREPARED BY
Matthew Weatherly, President
(888) 522-7772 I matt(pspc.us
PUBLIC
SECtOR
PERSQNNEL
CONSLJIJANtS
PROPOSAL TO CONDUCT A
COMPENSATION STUDY
FOR THE CITY OF AVALON
TABLE OF CONTENTS
Section
LETTER OF TRANSMITTAL and TITLE SHEET
2 QUALIFICATIONS OF OUR FIRM AND STAFF
H/STORY AND FACTS ABOUT OUR FIRM 2RECENT CALIFORNIA EMPLOYERS SERVED 3RECENT MUNICIPAL EMPLOYERS SERVED 3 CLIENT REFERENCES 4
RESUMES OF PROJECT TEAM MEMBERS 5
3 PROJECT APPROACH AND METHODOLOGY
SUMMARY OF SERVICES 7
PROJECTSCOPEAND METHODOLOGY 8
A. OBJECTIVES OF THE PROJECT 8
B. SCOPEOFTHEPROJECT 8
C. TOTAL COMPENSATION SURVEY AND ANALYSIS 8
1. City Involvement in Compensation Plan Development 8
2. Comprehensive Compensation Surveys 83. Prevailing Rates Calculation 9
4. Compensation Competitiveness Comparison 9
5. Compensation Competitiveness Policy — Option 96. Salary Plan Structure Development -Option 97. Salary Range Assignment Development -Option 108. Implementation Plan Development -Option 10 D. FINAL REPORTS AND PRESENTATIONS 10PROJECT TIMELINE ILLUSTRATION -GANTT CHART 10 4 FEE PROPOSAL 11
5 NO CONFLICT AND NO HISTORY OF LITIGATION 12
PUBLIC SECTOR PERSONNEL CONSULTANTS
PROPOSAL TO CONDUCT A
COMPENSATION STUDY FOR THE CITY OF AVALON
TRANSMITTAL LETTER AND TITLE SHEET
EXHIBIT B FROM RFP
PUBLIC SECTOR PERSONNEL CONSULTANTS
PUBLIC
SECTOR
PERSONNEL
CONULTAN1S
June 3, 2024
Ms. Jocelyn Francis
Assistant City Manager
City of Avalon
410 Avalon Canyon Road
Avalon, CA 90704
Dear Ms. Francis and Selection Team,Pursuant to your request, we are pleased to provide you with a proposal and qualifications to assist the City with a compensation project. We specialize in these services and have implemented classification and compensation plans for more than 1,100 public employers nationwide, including more than 450 municipal employers and more than 100 public employers in California.
Current and recently completed projects include Escondido, Huntington Beach, San Juan Capistrano,Montebello, Thousand Oaks, Bell Gardens, La Verne, Westlake Village, Riverside, Colton, San Bernardino, Fontana and Azusa.
We believe our firm is uniquely qualified for this study. We will utilize only full-time, certified Human Resources professionals for the study, with combined greater than 100 years of experience in the fields of humanresources, compensation, and labor relations.Our proposed approach will be customized to meet the City’s needs. We are confident that our extensive public employers classification and compensation experience, knowledge of public employers in California, large specialized and highly qualified full-time staff, proven methods, unique EZ COMPTM application to ensure yourself-sufficiency, and one year of implementation support and assistance at no cost, will achieve all of the City’sobjectives for an important project of this nature.Our proposal remains valid for 180 days and no conflict of interest exists.Thank you for your interest in our firm’s services. If we can provide any additional information, such as samplesof recent similar studies, or if you would like to visit further about the City’s project needs, please contact me atany time.
Sincerely,
Matthew Weatherly, President
(888) 522-7772
mattspc.us
Regionally: 149 S. Barrington Avenue #726 Los Angeles, cA 90049 888.522.7772 • www.pspc.us
LXIftBH U
PROPOSAL 11 LI SI ILL I
Cli OF AVAI ON RIQULST FOR PROPOSAL
CLASSIFICATION AND COMPENSATION STUDY SERVIC[S
Closing Date & VI inc I nnisLry, Jwie 18. 2024 by 2:00 pmTodays Date. iii rs qnnnil i_H:y bniI IV: s—n a’s:. b, [n:s ss, aqrss to Liii tIn nnL in a:coei.ne 1K Ihn k:n 05’ on Pn,’ 511 RIP), riOlI :• b 1n In ,on ninn’ Cr’ lr RP
Nann of Finn: ,, ,, -‘N 5..LegnI NamL’:Business Type ‘ t pcrilncr- —u•ru’(:i ship Nu Total(check one): ‘irs’i; nni1 LnasL I.UiL0’p mpIoycesMailing Acldrcss I ‘I’. .PIioni Number: i--,_) ii ‘. E-Mal. •,‘l fr.2’ .,, Contact Name: ‘, , Idle. - ..Signature: : . .:r Date.
PROPSOAL Attasli one 1 copy of your jrroposiI jlickI(Jri
PROPOSAL TO CONDUCT A
COMPENSATION STUDY FOR THE CITY OF AVALON
QUALIFICA TIONS OF OUR FIRM AND STAFF
HISTORY OF OUR FIRM
CLIENT REFERENCES
RECENT EMPLOYERS SERVED
STAFF RESUMES
PUBLIC SECTOR PERSONNEL CONSULTANTS
HISTORY AND FACTS ABOUT OUR FIRM
• HISTORY OF OUR FIRM
Public Sector Personnel Consultants (PSPC) originated in 1972 with the Public Sector Group of the international human resources consulting firm of Hay Associates. PSPC was established as anindependent firm in 1982. We are a single-owner, debt-free subchapter-S corporation. • SPECIALIZED IN COMPENSATION SERWCES
We are “super-specialists” in compensation, providing services in job analysis, position classification, jobcontent evaluation, compensation, and directly related services. Over 98% of our classification and compensation studies have been successfully implemented by our clients. • SPECIALIZED IN PUBLIC SECTOR CLIENTS
We provide services exclusively to public sector employers including municipalities, counties, utility districts, library districts, special districts, state governments, housing and redevelopment agencies, airportauthorities, school districts, higher education, and tribal governments. • SPECIALIZED COMPENSA TION STAFF
Our staff is comprised of eight (8) full-time and an additional five (5) part-time senior human resourcesprofessionals with very extensive experience as compensation managers and consultants for publicemployers. Our staff has more than 100 years of combined experience working for and consulting to publicsector employers. • REGIONAL STAFF
We have regional offices or affiliates in Los Angeles, CA, Phoenix (Mesa), AZ, Austin, TX, Dallas, TX, Chicago, IL, and St. Paul, MN.
• OVER 1,100 PUBLIC EMPLOYERS SERVED
Our staff members have provided compensation, human resources, training and related consulting services to more than 1,100 public and 200 private employers throughout the U.S. • AMERICAN COMPENSATION ASSOCIATION PARTICIPATION (ACA) (NOW WORLDATWORK) Our consultants are active members of ACA, including serving as instructors for the ACA certification courses.
• FIRST YEAR IMPLEMENTATION WARRANTY
We provide our clients with extensive implementation support during the first year, and we will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or entire job class, at no additional cost.
PUBLIC SECTOR PERSONNEL CONSULTANTS
2 RECENT CALIFORNIA EMPLOYERS SERVED BY MEMBERS OF OUR STAFF Apple Valley, Town of *
Azusa, City of *
Bell Gardens, City ofBanning, Cfty of *
Capitol Area Development Authority *Colton, City of, CA Commerce, City ofCulver City, City of
Huntington Beach, City ofIndian Wells, City of
Rancho Palos Verdes, City of
Riverside, City of *
Sacramento Housing Authority *Salinas, City of *San Clemente, City of *San Juan Capistrano, City of *Santa Cruz Port District *South Gate, City of Upland, City of
Vernon, City of
Victorville, City of
Westlake Village, City of *
* “repeat” clients — multiple projects implemented
Active 2024: Eastvale, El Monte, Fontana, Hawaiian Gardens, Santa Fe Springs
ADDITIONAL RECENT MUNICIPAL EMPLOYERS SERVED BY OUR STAFF Addison, Town of, TXAliso Viejo, City of, CAAllen, City of, TX Ben brook, City of, TXBothell, City of, WABozeman, City of, MT Casa Grande, City of, AZCedar Park, City of, TXCentralia, City of, WA Dallas, City of, TXDenton, City of, TX
Edmonds, City of, WAEl Paso, City of, TXFairview, Town of, TXFort Worth, City of, TX Frisco, City of, TX
Georgetown, City of, TXGrand Forks, City of, ND
Grapevine, City of, TX
Haltom City, City of, TXHighland Park, Town of, TX
Kerrville, City of, TXKilleen, City of, TXLamar, City of, COLas Cruces, City of, NMLisle, Village of, ILMaricopa, City of, AZMinot, City of, NDMountain Village, Town of, CO Oak Brook, Village of, IL
Odessa, City of, TX
Pearland, City of, TXPiano, City of, TXProsper, Town of, TXRio Rancho, City of, NMRockwall, City of, TXRoswell, City of, NMRowlett, City of, TX Scottsdale, City of, AZ
Tomball, City of, TXWinslow, City of, AZ
Woodlands Township, TX
University Park, City of, TX
PUBLIC SECTOR PERSONNEL CONSULTANTS
3 REPRESENTATIVE PROJECT REFERENCES
Following is a listing of agencies which are representative of more than 1,100 employers, for whom members of our firm have services similar to those requested by the City.
RIVERSIDE, CITY OF, CAMs. Miriana Gonzalez, Deputy HR Director (951) 826-5808
mgonzalezriversideca.gov
FONTANA, CITY OF, CA
Ms. Rakesha Voss, HR Director(909) 350-7648rvossfontanaca.ov FY 2024 POA SurveyFY 2020 SEIU, POA Compensation Study
DALLAS, CITY OF, TX
Ms. Carmel Fritz, Deputy Director
(214) 670-7391
carmel.fritzdallascityhall.com
FY 2024 Classification and Compensation Study
SCOTTSDALE, CITY OF, AZMr. Jim Thompson, City Manager
(480) 312-2800
jthomsonscottsdaleaz.gov
FY 2024 Planning and SupportFY 2022 Class and Compensation Study SANTA FE SPRINGS, CITY OF, CAMr. Nicholas Razo, Assistant City Manager (562) 868-05 1 1
NichoIasRazosantafesprings.orq
FY 2024 Class and Comp StudyFY 2022 Compensation Study Update FY2018 Class and Compensation Study
FY 2024 Classification and Compensation Study
PUBLIC SECTOR PERSONNEL CONSULTANTS
4 MATTHEW E. WEATHERLY, PRESIDENT, PROJECT LEADER
Mr. Weatherly has over 20 years of experience as a human resources management professional and consultant, specializing in position classification, compensation, recruitment and selection. He has served as a Human Resources Manager with Employee Solutions, Inc. and Staffing Consultant with Initial Staffing Services.
He has completed projects in staff development, recruitment, selection, job descriptions, salary survey, and salary plan development. Among his current and recently completed consulting projects are those for:
Banning, City of, CABig Bear Lake, City of, CA
Commerce, City of, CA
Inglewood, City of, CA
Hidden Hills, City of, CANorth County Fire, CA
Redwood City, City of CARialto, City of, CA
Salinas, City of, CASan Clemente, City of, CA
Scottsdale, City of, AZ
Westlake Village, City of, CA
Mr. Weatherly holds a BS degree in Human Resources Management from Arizona State University’s WP Carey School of Business. He has been a featured speaker at City Manager and HR meetings throughout the US.
ELIZABETH J. LOCURTO, CCP, VICE PRESIDENT
Ms. LoCurto has over 30 years of experience as a compensation manager and consultant for public and private employers, specializing in job analysis, salary surveys, and salary plan development. She has served as Compensation Research Associate for Hayes/Hill, Inc., Senior Compensation Analyst for AON Corporation, Compensation Manager for Loyola University, and Project Manager for the American Compensation Association.
She has conducted projects in job audits, job descriptions, salary surveys, compensation databasemanagement, compensation plan development, compensation training course development, and compensation trend research. Among her consulting projects are:
Apple Valley, Town of, CA Highland, City of, CA Sacramento, City of, CA California Family Health Council Midland, City of TX Seaside, City of, CA El Paso, City of, TX Oakland, City of, CA State Bar of Texas Fresno, City of, CA Pomona, City of, CA Stockton, City of, CA Ms. LoCurto holds a BS degree in Business Administration from Arizona State University. She holds the Certified Compensation Professional (CCP) designation from the American Compensation Association.
KATHERINE TILZER, SPHR, VICE PRESIDENT
Ms. Tilzer has more than 25 years of experience as a human resources manager and consultant, specializing in employee relations, compensation, and recruitment. She has served as Personnel Manager for Laboratory Corporation of America, Director of Human Resources for Plaza Healthcare, Inc., and Director of HumanResources for American Baptist Homes.
Agoura Hills, City of, CAAzusa, City of, CA
Castro Valley Sanitary Dist., CACulver City, City of, CA Indian Wells, City of, CAMonterey Transit Dist., CAPacific Grove, City of, CA Sacramento City Schools, CA
San Bernardino Assn of Govt’s, CA
Thousand Oaks, City of, CAVictorville, City of, CAWater Facilities Authority, CA She holds a BS degree in Management from the University of Phoenix, and certification as Senior Professionalin Human Resources from the Society for Human Resources Management.
PUBLIC SECTOR PERSONNEL CONSULTANTS
5 BOB LONGMIRE, PMP, PROJECT LEADER
Mr. Longmire has more than 15 years of project management experience and consulting for public employers, specializing in employee development, classification, and compensation. He has served as National Sales Director for Connexion Technologies and Brand Marketing Manager for Plink.He has completed projects in job analysis, position classification, compensation surveys and plan development.
Among his consulting projects are those for:
Bell Gardens, City of, CA
Colton, City of, CA
Escondido, City of, CALa Verne, City of CA
Piano, City of TX Pitkin County, CO
Salinas, City of CA San Bernardino, City of, CA
Greater Orlando Airport, FL Santa Ana, City of, CA
King County Library Systems, WA Sarasota-Bradenton Airport, FL Mr. Longmire holds a BS degree in Administration from Colorado Christian University and designation as ProjectManagement Professional from the Project Management Institute.
SAMUEL HEINZ, MPA, PHR
Mr. Heinz has conducted projects in job analysis, position classification, job evaluation, compensation surveys, and compensation plan development. Among his recent client projects are those for:
Addison, Town of, TXApache Junction, City of, AZ
Bismarck, City of, ND
Carroilton, City of, TX
DeSoto, City of, TX
Galveston, City of, TX
Midland, City of, TX
Odessa, City of, TX
Prosper, Town of, TX
Teton county, WYThe Colony, City of, TXWilliston, City of, ND Mr. Heinz holds a MA degree in Public Administration from Texas Tech.
PUBLIC SECTOR PERSONNEL CONSULTANTS proposes to utilize only full-time members of our firm to complete all of the project tasks and objectives. In order to maintain complete control of the project tasksand deadlines, we will not utilize subcontractors for the completion of the project.ACA PUBLIC SECTOR PERSONNEL CONSULTANTS 6124 6 PROPOSAL TO CONDUCT A
COMPENSATION STUDY FOR THE CITY OF AVALON
PROJECT APPROACH
SUMMARY OF SERVICES
APPROACH AND METHODOLOGY
PUBLIC SECTOR PERSONNEL CONSULTANTS
AVAILABLE SERVICES FOR THE CITY OF AVALON
PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting servicesand implementation support to conduct a compensation study.
Project Planning and Communication
1. Phone/video project planning and scheduling meeting with the City’s project designee(s)
2. Policy input and project direction meeting and briefing with Human Resources, designee(s)
3. Management and employee communication, progress reports throughout all project phases Custom and Comprehensive Market Compensation Survey
4. Occupational familiarization by review of City’s current job descriptions and compensation plans
5. Organizational familiarization by review of City organization charts, budgets, and annual reports6. Identification of City’s competitive employment areas for compensation surveys, for City approval7. Confirmation of City occupations to utilize as survey benchmark job classifications8. Solicitation of comparator employers and agencies for participation in external compensation survey9. Extraction of data from public employer compensation plans, questionnaires, reliable published surveys
10. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs
11. Computation of extent City’s compensation offerings vary from external prevailing rates and practices
12. Review of competitiveness analysis with Human Resources, Officials and City’s project designees Compensation Plan Development — As Needed or Desired
13. Construction of optional salary range structures for review and selection by City’s project leaders14. Assignment of job classes to salary ranges by internal equity and external competitiveness15. Assistance with City Council identification of desired, affordable salary competitiveness policy16. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies17. Review and critique of draft salary and implementation plans with Human Resources, project leaders Communication of Results and Implementation Strategies
18. Preparation and presentation of final project reports for the City Council, staff, and City Officials19. Development of a plan for the implementation of City’s updated compensation plan
20. Uploading of EZ COMPTM program files on a Human Resources Department computer, staff training21. Development and provision of process for ongoing plan maintenance and subsequent plan updates22. Assistance with communicating the City’s updated plans for all City officials and employees23. One year classification and compensation plan maintenance assistance at no cost to the City ACA PUBLIC SECTOR PERSONNEL CONSULTANTS . 6124
7 PROJECT APPROACH AND METHODOLOGY
Following is our overall work plan and approach to achieving the City’s objectives for the conduct of a compensation study.
A. OBJECTIVES OF THE PROJECT
The recommended plans, programs, systems and administrative procedures will meet these ten most important criteria.
- Internally equitable - Financially responsible- Externally competitive - Efficiently administered- Readily understood - Inclusive of employee input- Easily updated & maintained -Reflective of City’s values- Legally compliant & defensible -Reflective of prevailing “best practices” B. SCOPE OF THE PROJECT
The project could include: a management and employee communication plan; partnership with the City’s Human Resources staff, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; base pay compensation survey and competitiveness analysis; salary range recommendations; fiscal impact estimates and multiple implementation scenarios; updated compensationplan and one year of compensation plan implementation support for all included employees in all job classifications.
C. SURVEY AND COMPENSA TION ANAL YSIS
1. City Involvement in Compensation Plan Development
We will obtain policy direction from the Human Resources staff and/or City Officials on the following key components of the salary plan development process: - Comparator Employer Selection - Market Data-Salary Plan Linkage - Benchmark Job Class Selection - Draft Compensation Plan Review / Critique - Compensation Competitiveness Policy -Compensation Points for Analysis- Salary Structure Selection (if desired) - Project Implementation Plan
2. Comprehensive Compensation Survey
We will collect the complete pay plans from each of the City’s comparators and build a custom survey database to ensure accuracy and completeness, unique to the City’s job classifications. a. Data Collection Protocol will be developed in consultation with the City’s project leaders to determine which salary data elements to include, such as:
Salary and Total Compensation Information - Salary grade/step or open range salary plan structure - City-supported contributions including pension, health, deferred com pensation - Add-pay such as education and certification; other elements of comp to be approved b. Benchmark Job Selection will be made by identifying City job classes common to its employment competitive public and private employers in the immediate area and throughout the region or State,clearly identifiable, and representative of standard occupational job groups.
ACA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/24
8 c. Comparator Employers Identification will be made in consultation with the City’s Project Manager(s) or City Council. Criteria include their degree of competition to the City in obtaining andretaining high quality staff, their location in the City’s traditional recruitment areas, and their organizational size and complexity.
d. Compensation Data Collection will be made by one or more of the following methods. - Pre-survey contact with the selected comparator employers to solicit participation in the City’s compensation survey(s)
- Extraction from the pay plans of designated public employers. - Customized total compensation requests for local governments and other public employers, distributed by mail, fax, and e-mail.
- As desired, additional data extraction from established salary surveys and commercial survey sources such as Watson Wyatt, ERI, etc.
e. Data Quality Control includes editing data for accuracy and proper matching to the City’s survey benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain comparators’benchmark job descriptions.
3. Prevailing Rates Calculation
We will consolidate the compensation data from all sources, enter the information into the EZ COMPTM program, and compute the prevailing rates, inclusive of cost-of-living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date ofcollection to a common date relating to the City’s salary plan year by the annual Prevailing Rate Increase Factor (PRI) applicable at that time.
4. Compensation Competitiveness Comparison
We will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. We will calculate the extent that the City’s offerings vary from the prevailing rates and practices of other relevant employers.
5. Compensation Competitiveness Policy — If Desired Option We will assist the City to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentagerelationships to the prevailing rates.
6. Salary Plan Structure Development — If Desired Option We will review the City’s current wage plans and 1) utilize the City’s current wage plan structures to identify internally equitable and externally competitive salary ranges for each City job class or 2) prepare alternative salary range structures and schedules for the City to select the best fit for its competitiveness strategy, with these optional criteria:- Method of administration, i.e.: measured job performance, longevity, or skill- Width of the salary ranges, grades, or broad bands, from Minimum to Maximum - Open salary ranges for pay-for-performance or variable compensation plan - Number of salary ranges, grades, or broad bands in the salary schedule- Percentage of separation between salary ranges, grades or broad bands - Linkage of performance evaluations to performance increase opportunities ACA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/24
9 7. Salary Range Assignment Development — If Desired Option We will assign each job classification to a salary range in the City’s current or selected new salary structure on the basis of a combination of factors, including: - the prevailing rates for the benchmark job classes - its current relationship to similar or occupationally related job classes - the 15% guideline for salary range separation between sequential job classes - the 25% guideline for salary separation of a department head job class- its quantitative evaluated internal job worth value (job evaluation points)
8. Implementation Plan Development — If Desired Option
We will consult with the Project Team on a plan for transition to the recommended plan, including atimetable for the principal activities, employee communication, and estimates of required financial resources.
D. FINAL REPORTS AND PRESENTATIONS
Draft and Final Report Preparation
We will provide the City’s project leader(s) with a draft of our report for review and critique, includingcompensation market data, and the optional salary comparison tables, fiscal estimates, salary range listings, and implementation procedures. We will incorporate their critique into the development of a final report summarizing the project’s findings, recommendations, and detailed description of the City’s updated compensation plans (option).
2. Final Report Presentations
We can conduct a workshop or formal presentation of our final report and recommendations to the Human Resources staff, City Officials, and employees.
ESTIMATED PROJECT ELAPSED TIME CHART
TASK NAME ELAPSED WEEKS: 1-3 4-6 7-9 10-12 13+
PROJECT C0MMuNIcA110N,
QUALITY ASSURANCE
PROJECT STATUS REPORTS
COMPENSATION SURVEYS, BENCHMARK
SELECTION, DATA COLLECTiON,
COMPARABILITY ASSURANCE REVIEW
PREVAILING RATES COMPUTATION, *MARKET COMPETITIVENESS ANALYSIS, _________ DRAFT COMPENSATION METHODOLOGY
SALARY RANGE ASSIGNMENTS ON BASIS
OF INTERNAL EQUITY AND EXTERNALCOMPE11T1VENESS (OPTION)(opt) SALARY RANGE TABLES, FISCAL * ESTIMATES, REVIEW OF DRAFT PLANS I______________ CITY OFFICIALS, DESIGNEE(S) PREPARA11ON AND PRESENTATION OF
FINAL REPORT TO HR, COUNCIL, I______________ EXECUTIVE TEAM * Progress reviews with the City
ACA PUBLIC SECTOR PERSONNEL CONSULTANTS 6124
10 PROPOSAL TO CONDUCT A
COMPENSATION STUDY FOR THE CITY OF AVALON
FEE PROPOSAL
PUBLIC SECTOR PERSONNEL CONSULTANTS
PROJECT RATES BY MAJOR TASK
A. PROJECT COST ESTIMATE
We estimate that the projects total cost, including all fees for professional services and reimbursement for out-of-pocket expenses, will not exceed the indicated amounts.
Malor Project Components -Total Compensation Survey — Target All Jobs, Up to 12 Comparators $ 20,000 -Communication, Reporting, Placeholder if Employee/On-Site Meetings $ 10,000 Not-to-Exceed: $ 30,000
Option — Pay Plan Development
-Range Placements, Pay Table Design, Reporting $ 7,500
B. FLEXIBLE WORK PLAN, NEGOTIABLE TOTAL COST, TERMS
Our work plan is flexible and total project cost negotiable, and we will discuss, modify, add or delete, any work task to increase the project’s responsiveness to the City’s needs and financial resources. We will provide the City with monthly invoices for the professional services provided and out-of-pocket expensesincurred during the month. We request that the City pay the invoices within thirty (30) days of their receipt.
C. ESTIMATED TIMELINES
We estimate that a compensation study could be completed within 90-120 days of initial phone planning meetings.
ACA PUBLIC SECTOR PERSONNEL CONSULTANTS 6124
11 PROPOSAL TO CONDUCT A
COMPENSATION STUDY FOR THE CITY OF AVALON
NO CONFLICT, NO HISTORYOFLITIGATION
PUBLIC SECTOR PERSONNEL CONSULTANTS
No Conflict or History of Litigation
PUBLIC SECTOR PERSONNEL CONSULTANTS hereby certifies that no conflict of interest exists for our firm to be eligible to be considered for this project, and further certifies that in our 35+ years of performing classification and compensation studies for local governments and public employers, our firm and staff have never been subject to any litigation, nor have we failed to complete a contract.
a
Matthew Weatherly, President
ACA PUBLIC SECTOR PERSONNEL CONSULTANTS 6/24
12 CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: ________ ORIGINATING DEP: Administration CITY MANAGER: iDUj.-& PREPARED BY: Robert Greenlaw, CIP Director
Devin Hart, Management Analyst
SUBJECT: Crescent Hillside Stabilization Contractor Procurement RECOMMENDED ACTION(S): (1) Make a finding that emergency measures must continue to be implemented to protect from economic loss of both City property and the adjoining privateproperty, as well as reduce the hazardous conditions from a landslide below the Crescent Avenue Stairway. (2) Authorize the City Manager or his designee to negotiate additional work to repair the Crescent Avenue Hillside/Stairway for a not to exceed $600,000. (3) Amend the FY 2024-25 Budget by increasing account 10550-6547, CIP Project #205002, by $358,977 for a total project sum of $875,000.
REPORT SUMMARY: On March 1, 2023, Governor Gavin Newsom proclaimed a state of emergency in 13 California Counties due to winter storm conditions. In 2023, due to a series of natural phenomena called “Atmospheric Rivers,” the City received an unprecedented amount of precipitation and an increased number of wind events.The weather conditions led to flooding, infrastructure failures, increase rock falls and mud slides, the appearance of sink holes along the roadways, and damage to City parks and facilities.
On March 21, 2023, the City Council adopted Resolution No. 23-07 making the appropriate findings and declaring a Local State of Emergency due to the damages from the severe rain and winds.
The resolution included an initial assessment of damage to City infrastructure, Exhibit A.
Of specific concern, a landslide began to develop below the Crescent Avenue Stairway, at a location above the Catalina Island Yacht Club. Approximately 100 cubic yards of earthenmaterial below the wall rotated and slipped approximately six feet in elevation. Since the initial event, anytime a significant rain event occurred additional material slipped downward in a slow progression, with the amount of material movement relative to the amount and intensity of therainfall.Staff consulted with the City’s on-call engineering consultants and determined that the material needs to be removed, but the wall that provides the foundation for the stairway was still competent; however, with additional rain, additional earthen material slipped and exposed the lower wall embedment. Staff again consulted with its on-call consultant, and the contractor that originally constructed the wall. It was determined that a corrective action needed to be pursued to protect the integrity of the wall.
On March 21, 2023, the City Council voted unanimously to:
1. Make a finding that emergency measures must be implemented to protect from economic loss of both City property and the adjoining private property, as well as reduce the hazardous conditions from a landslide below the Crescent Avenue Stairway.
2. Make a finding that due to the need to respond with a highly qualified contractor relative to the work scope that public bidding is inefficient with this specific work scope and should be dispensed with.
3. Authorize the City Manager or his designee to negotiate and award a construction contract for a not to exceed $300,000 to complete the work.
Since the adoption of the Emergency Declaration Resolution and authorization to negotiateand award a contract City Staff, under the direction of the Director of Emergency Services, has worked to identify an apporopriate contractor to mitigate storm damages throughout Avalon, including the damage at Crescent Avenue Hillside.
Unfortunately, due to the limited footprint to work from — both at the bottom of the hillside and the top — as well as the steep incline. Staff had an extremely difficult time engaging a qualified contractor to perform any scope of work.
Additionally, the Atmospheric River conditions of 2023 were experienced throughout the State causing significant storm damage in much of California. The increased need for qualifiedcontractors in other regions futher inhibit the City’s ability to identify and engage an appropriate vendor to perform the necessary mitigation work.
As a temporary measure, in late 2023 City Staff installed a tarp to mitigate further erosion in the area.
In April 2024, City Staff became aware of a contractor with the availability and ability to perform the necessary work to stabilize the hillside. The City received an initial proposal from Arizona Drilling & Blasting on May 1, 2024. The proposal includes a preliminary defined scope of work estimated at $282,000; however, due to general complications of the project, the contractor recommended, and City Staff have agreed, for work to be performed on a time and material basis (T&M). On May 3, 2024 the City entered into an agreement with Arizona Drilling & Blasting to perform the necessary scope of work on a T&M basis for a not to exceed sum of $300,000.
The project began on May 5, 2024. Arizona Drilling & Blasting and other vendors have worked to provide project mobilization of personnel and equipment to the island and up the hillside tothe limited access project site, excavated an area to perform the work, drilled and placed 17 tieback anchors to depths of 40 feet into bedrock anchorage, installed 17 walers (horizontal steel beams) to transfer wall loads to tieback anchors, drilled and installed eight underdrains to depths of 20 feet into the hillside, manufactured and installed 30 concrete laggings (horizontal beams) to retain the wall backfill where the slipout exposed unrestrained soil, installed an underdrainage system over and down the hillside to direct excess subterrain drainage to the road below, and restored the hillside area with an engineered backfill I erosion control.
Due to the complexity of the scope, difficulty associated with the location and the discovery of various concealed conditions, the project budget has expanded.
City Staff recommend the City Council authorize the City Manager, or his designee, tonegotiate additional work to repair the Crescent Avenue Hillside/Stairway for a not to exceed $600,000. Revising the sum has been discussed with the contractor and the new sum should be sufficient for the remaining scope of work.
If approved, Staff recommend the City Council authorize an amendment to the FY 2024-25 Budget by increasing account 10550-6547, CIP Project #205002, by $358,977 for a total project sum of $875,000. This sum includes monies needed in addition to the construction contract including services of a geotechnical engineer, crane services, barge services, materials, lodging for the project worker due to the unforeseen conditions.
City Staff and the contractor anticipate this project to be completed by mid-August 2024.
GOAL ALIGNMENT: City Infrastructure.
FISCAL IMPACTS: To be determined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: A qualified contractorwill not be engaged and this scope of work will not be completed.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
• Resolution No. 23-07
• March 21, 2023 Staff Report re: Authorize for Emergency Wall Repair Contract for Repairs at Crescent Avenue Staircase
I .
RESOLUTION NO. 23-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON
PROCLAIMING EXISTENCE OF A LOCAL EMERGENCY
WHEREAS, Ordinance No. 670 (1979) of the City of Avalon (City) empowers the Director of Emergency Services (City Manager) to request the City Council to proclaim the existence or threatened existence of a local emergency; and WHEREAS, the City Council has been requested by the Director of Emergency Services ofsaid City to proclaim the existence of a local emergency therein; and WHEREAS, Governor Gavin Newsom proclaimed a state of emergency in 13 California Counties due to winter storm conditions; and WhEREAS, in 2023, due to a series of natural phenomenas called “Atmospheric Rivers,” the City has received an unprecedented amount of precipitation, increasednumber of wind events, and some flooding; WhEREAS, weather conditions have led to infrastructure failures, rock falls, mudslides, sink holes and damage to city parks and facilities; and WHEREAS, the fiscal impact of the damages to the City, and private infrastructure related to these weather events is still being determined; and WHEREAS, the City Council does hereby find:
1. That conditions of extreme peril to the safety of persons and property have arisen within the City of Avalon and Santa Catalina Island, caused by the severe rain andwindy conditions;
2. That the condition and initial assessment of damage to City infrastructure facilities, as outlined in the attached Exhibit A, will exceed the capability of the City toaddress and correct without the assistance ofthe County, State and Federal government;
3. That the aforesaid conditions of extreme peril warrant and necessitate the proclamation ofthe existence of a local emergency; and
4. There is need to take certain actions to protect those who must provide emergency services.
NOW, THEREFORE, IT IS HEREBY PROCLAIMED that a local emergency now exists throughout the City of Avalon and Santa Catalina Island; and IT IS HEREBY FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the Director of Emergency Services and the emergency organization of this City shall be those prescribed by state law, by ordinances and resolutions of this City, and/or resolutions approved by the City Council on March 21, 2023.
1 .
IT IS FURTHER PROCLAIMED AND ORDERED that said local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council ofthe City of Avalon, State of California.
IT IS FURTHER PROCLAIMED AND ORDERED that the Director of Emergency Services is directed to pursue all available funding and assistance for repairs,emergency services, clean-up and other necessary steps to respond to the local emergency as well as coordinate with local, State and Federal authorities to assess the next stepsavailable to take action to protect and preserve the public safety, health and welfare.
IT IS FURTHER PROCLAIMED AND ORDERED that the Director of Emergency Services is directed to take all appropriate actions to undertake and addressthe repairs and conditions noted in the attached Exhibit A as well as other conditions thatmay exist that are currently unknown but which were caused by the severe rain and windy conditions.
IT IS FURTHER PROCLAIMED AND ORDERED that a copy of this proclamation be forwarded to the Director of California’s Governor’s Office of Emergency Services requesting that the Director find it acceptable in accordance with State law; that the Governor of California pursuant to the Emergency Services Act, and all other appropriate powers, issue a proclamation declaring an emergency in the City of Avalon and Santa Catalina Island; that the Governor waive regulations and laws that may hinder response and recovery efforts; that recovery assistance be made available utilizingthe California Disaster Assistance Act funds, State Private Nonprofit Organizations Assistance Program funds, Small Business Administration and any other local, State or Federal Funds available to mitigate this emergency which include, but are not limited to,weather response, repair and recovery costs and that the Governor request that the President of the United States make a Presidential Declaration of Emergency in and for the City of Avalon and Santa Catalina Island and make all relevant funds and assistance available to the City of Avalon, Santa Catalina Island and all eligible community members and businesses.
PASSED, APPROVED AND ADOPTED at a regular meeting ofthe City Council ofthe City of Avalon this 21st day of March, 2023, by the following vote:
AYES: Mayor Marshall, Councilmembers De La Rosa, Lavelle, Ponce and Schickling.NOES: None.ABSTAIN: None.
ABSENT: None.
Ann H.
.
Marshall,
)i
Mayor
d - City of Avalon
ATTEST:
.lOLQ
Gabrielle Morones
Deputy City Clerk/Sr. Administrative Assistant
City of Avalon
2 .
ATTACHMENT A
Date: Wednesday, March 15, 2023
Subject: Damages to City Infrastructure Facilities — 2023 Atmospheric River Incidents Atmospheric River Conditions began in January 2023 and have continued through today resulting in strong winds and rains.
The purpose of this memo is to inform of the respective damages in Avalon, and attempt to establish approximate costs for the remediation of them. Below is a list of the most significant damages that have been realized to date assessed by Robert Greenlaw, Public Works Director.
These assessments are preliminary, and additional impacts may become apparent as we continue to explore and address immediate issues and plan for long term needs.
These assessments focus on areas of City management and/or ownership, as well as the Catalina IslandCompany and the Catalina Island Conservancy. Many areas impacted are privately owned, operated or fall outside of the City boundaries. However, due to the isolation of Catalina Island and the general lack of redundant services — infrastructure, businesses, etc. — many of these additional impacts directly affect the Avalon community as a whole and our town’s general ability to operate as normal. Furthermore, damages which occurred outside of the City have generated debris which requires salvaging from Avalon’s waters to protect infrastructure and users of Avalon’s harbor and waters.
This assessment does not include the residential and private businesses located in affected areas. At this time, as adverse weather conditions continue, the extent of any damages is unknown.
Initial Damage Assessment Overview
.
# Description Damage Cost Owner
(1) Avalon City Hall — 410 Avalon Canyon Road Estimated $10,000 COA (2) Avalon Fire Station — 420 Avalon Canyon Road Estimated $30,000 COA (3) Harbor Department Building — No. 22 Pleasure Estimated $15,000 COA Pier
(4) Crescent Avenue Estimated $300,000 COA
(5) South Beach Estimated $25,000 COA
(6) Pebbly Beach Road Estimated $175,000 COA
(7) St. Catherine Way Estimated $50,000 COA
(8) Avalon Canyon Road Estimated $15,000 COA
(9) Waste Water Treatment Plant Estimated $40,000 COA
Initial Estimate Total: $600,000
(10) Wrigley Road Storm Channel Estimated $10,000 CICO
(11) Ciarissa Storm Channel Estimated $10,000 CICO(12) Roaring Canyon Estimated $100,000 CICO (13) Golf Course - Bird Park Estimated $20,000 CICO
(14) Triana Lane Unknown CICO
Initial Estimate Total: $140,000
(15) Interior Roads Unknown CIC
Grand Total Initial Estimate Identified Entities: Unknown *Note. These costs only reflect the cost of further assessment and do not reflect the cost of actual repairs. .
STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) SS.CITY OF AVALON )
I, GABRIELLE MORONES, DEPUTY CITY CLERK OF THE CITY OF
AVALON, do hereby certify that the foregoing is a true and correct copy of Resolution No. 23-07 and was duly passed, approved, and adopted by theAvalon City Council at the regular meeting of March 21, 2023 by the following vote:
Ayes: Mayor Marshall, Councilmembers De La Rosa, Lavelle, Ponce, and Schickling.
Noes: None.
Absent: None.Abstain: None.and that the same has not been amended nor repealed.
Dated this March 30, 2023.
Gabrielle Morones, Deputy City Clerk
City of Avalon, California
( (
CITY OF AVALON CITY COUNCIL
MEETING DATE: March 21, 2023 AGENDA ITEM: ________ ORIGINATING DEP: Public Works CITY MANAGER:
PREPARED BY: Robert Greenlaw, Director of Public Works
SUBJECT: Authorize Emergency Wall Repair Contract for repairs at Crescent Avenue Stairway FOUR VOTES REQUIRED
RECOMMENDED ACTION(S): (1) Make a finding that emergency measures must beimplemented to protect from economic loss of both City property and the adjoining private property, as well as redLice the hazardous conditions from a landslide below the Crescent Avenue Stairway. (2) Make a finding that due to the need to respond with a highly qualified contractor relative to the work scope that public bidding is inefficient with this specific work scope and should be dispensed with. (3) Authorize the City Manager or his designee to negotiate and award a construction contract for a not to exceed $300,000 to complete the work.
REPORT SUMMARY: Public Contract Code section 1102 defines an emergency as “a suddenunexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property. or essential public services”.
Public Contract Code section 22050(a) authorizes the City Council in a case of an emergency to pass a resolution pursuant to four-fifths vote to repair or replace a public facility, take anydirectly related and immediate action required by that emergency, and procure the necessaryequipment, services, and supplies for those purposes, without giving notice for bids. Prior to taking any action, the Council shall make a finding, based on substantial evidence, that theemergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency. The information set forth herein, as well aspresented during this meeting, constitutes substantial evidence that the emergency will notpermit a delay which would result from engaging in competitive bidding and that immediate repairs are necessary to respond to the emergency.During the March 21, 2023 regular City Council Meeting, the City Council will adopt a resolution to make the appropriate findings to declare a local state of emergency due to the damage caused by severe rain and winds.
Additionally, Avalon Municipal Code section 3-4.111(c) provides for an exception from bidding and other competitive procedures for “economic efficiency”. It states: “If a competitive marketdoes not exist, or the City will not gain a competitive advantage by using the formal contract bidor other competitive procedure, or where the goods or services may be obtained moreeconomically or efficiently without the procedure, the City may dispense with formal bidding or other competitive procedures.”
( (
In 2019 a landslide began to develop below the Crescent Avenue Stairway, at a location above the Catalina Island Yacht Club. Approximately 100 cubic yards of earthen material below the wall rotated and slipped approximately six feet in elevation. Since that event, anytime a significant rain event occurs additional material slips downward in a slow progression, with theamount of material movement relative to the amount and intensity of the rainfall. Staff consulted on-site with the City’s on-call engineering consultants and determined that the material needs tobe removed, but the wall that provides the foundation for the stairway was still competent. The conditions remained the same until rain events late in 2019 where additional earthen materialslipped and exposed the lower wall embedment. Staff again consulted with its on-call consultant, and the contractor that originally constructed the wall. It was determined that a corrective action needed to be pursued to protect the integrity of the wall. City Staff solicited proposals from qualified firms to determine the best course of action. The City received two proposals; however, the conditions stabilized and no action was taken.
During the recent Atmospheric River Incidents, the hillside beneath the Crescent Avenue Stairway began to further erode. An assessment has determined that corrective action must be taken immediately. With proposals from qualified firms in hand, City Staff request authorizationtot the City Manager or his designee to negotiate and award a contract for a not to exceed $300,000 to make repairs.
In FY 22/23, $325,000 was budgeted in Capital Project 205002 — Crescent Avenue Stairs (Account number 10550-6547.)FISCAL IMPACTS: The total contract amount will not exceed $300,000. In FY 22/23, $325,000 was budgeted in Capital Project 205002 — Crescent Avenue Stairs (Account number 10550-6547.) CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Potential wall failurecould occur that could potentially cause damage to public and private property. Additionally, the earthen material presents a hazard whenever significant rainfall occurs.
FOLLOW UP ACTION: Negotiate and award the construction contract.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: None.
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: II
ORIGINATING DEP: Administration CITY MANAGER:
________
PREPARED BY: Devin Hart, Management Analyst
SUBJECT: Medical Cannabis Delivery Service Business Permit Termination and Revocation Appeal and New Application Solicitation
RECOMMENDED ACTION(S): 1. Affirm, the City Manager’s decision to terminate a permit toprovide medical cannabis delivery business services from CJMH Group Inc. dba Catalina Connect. 2. Authorize the entity, CJMH Group, Inc, and/or owners, Steven Brereton or Carl Johnson to apply for a future City of Avalon Medical Cannabis Delivery Business permit without prejudice. 3. Authorize the City Manager to refund an appeal fee submitted on behalf of Carl Johnson regarding the revocation of CJMH Group, Inc.’s permit. 4. Authorize City Staff toopen the application process for a new medical cannabis delivery business permit holder.
REPORT SUMMARY: On December 18, 2018 the City Council adopted a resolution of intent to award its first Medical Cannabis Delivery Business Service Permit to CJMH Group, Inc. dba Catalina Connect. On July 24, 2019, Catalina Connect was issued a Medical — Retailer Nonstorefront License by the State of California Bureau of Cannabis Control, and shortly thereafter began operations in Avalon.
On September 29, 2021, due to questions surrounding the ownership and operational structure of Catalina Connect as well as noncompliance with the State of California Franchise Tax Board, the permit issued to CJMH Group, Inc. to provide medical cannabis delivery services was suspended by the City Manager.
On November 3, 2021 the City was notified that CJMH Group, Inc. had received a letter of good standing from the State of California Franchise Tax Board; however, no resolution had been made to the ownership/operational question.
Since the permit suspension, City Staff have met a number of times with CJMH Group, Inc. owners - Mr. Steven Brereton and Mr. Carl Johnson — separately, in a good faith effort to resolve the ownership/operation status of the business. As a result of those meetings, it was determined a resolution to this issue is not possible.
Additionally, CJMH Group, Inc.’s provisional, commercial-retailer-non-storefront license provided by the State of California Department of Cannabis Control expired on July 23, 2022.
On May 15, 2023, the City revoked the Medical Cannabis Delivery Business Permit issued to CJMH Group, Inc. dba Catalina Connect.
On May 25, 2023, Carl Johnson provided
a timely written appeal to the City Manager’s
decision to the revoke the permit. While the appeal addressed Mr. Johnson’s qualifications and position regarding the ownership dispute and permit revocation, the written appeal did notresolve the ownership/operation issue. Additionally, it could not be determined if Mr. Johnson could file an appeal on behalf of CJMH Group, Inc. as he could not unequivocally demonstrate his position as
a majority shareholder, or appointed corporate representative.
On June 15, 2023, City Staff requested verification from CHMH Group, Inc. that the appeal was filed on behalf of the entity, not Mr. Johnson individually. The request for verification established
a deadline of July 3, 2023 for proof of authorization from other shareholders to either file the appeal or represent the entity. On June 16, Mr. Johnson confirmed receipt and the deadline. On July 3, Mr. Johnson requested an extension to the deadline. The City Attorney extended the deadline to July 13, 2023. On July 13, Mr. Johnson requested additional extension to provide information. The City Attorney granted an extension to July 31, 2023. OnJuly 31, Mr. Jonson provided documents that did not meet the standard to establish authorization to act on behalf of the corporation. The City Attorney provided additional guidance requesting corporate meeting minutes wherein other shareholders authorized Mr.
Johnson to file an appeal or represent the entity; however, though they had been alluded to exist, corporate minutes were not provided.
Avalon Municipal Code Section 5-200.50(b) determines that a Medical Cannabis Delivery
Service Business Permit is only valid for 12 months after the date of issuance. After the 12month period, the permit must be renewed. As such, the Medical Cannabis Delivery Service Business Permit has expired pursuant to the Municipal Code and has not been renewed.
Section 5-20.050(e)(4) b. states: “An application for renewal of a medical cannabis delivery
service business permit shall be rejected if any of the following exist:
a. The application is filed less than 60 days before its expiration. b. The medical cannabis delivery service business permit is suspended or revoked at the time of the application.
c. The medical cannabis delivery service business has not been in regular and continuous operation in the four months prior to the renewal application. d. The medical cannabis delivery service business has failed to conform to the requirements of this chapter, or of any regulations adopted pursuant to this chapter. e. The permittee fails or is unable to renew its State of California license. f. If the City or state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this chapter, of the City’s Municipal Code, or of the state rules and regulations, and the City or state has determined that the violation is grounds for termination or revocation of the medical cannabis delivery service business permit.”
At no point has CJMH Group, Inc. requested for or applied for a permit renewal. The permit
was suspended (September 2021) and revoked/terminated (May 2023) by the City Manager.
The business has not been operating since September 2021. The business did not conform with a number of requirements from the AMC — thus the suspension and revocation. The permittee failed to renew its State of California license.
City staff recommend the City Council affirm the City Manager’s decision to revoke/terminate a permit to provide medical cannabis delivery business services from CJMH Group Inc. dba Catalina Connect due to failure of compliance with the Municipal Code and the fact that thepermit has expired and has not been renewed pursuant to the Municipal Code. However, staff recommend the City Council authorizes the entity, CJMH Group, mc, and/or owners, Steven Brereton or Carl Johnson to apply for a future City of Avalon Medical Cannabis Delivery Business permit without prejudice.
As Mr. Johnson was not able to provide sufficient evidence that he was an authorized agent of CJMH Group, Inc at the time he filed his appeal to the permit revocation, City staffrecommends the City Council authorize the City Manager to refund an appeal fee submitted on behalf of Carl Johnson regarding the permit revocation.
If staff recommendation is accepted, and the revocation stands, City staff recommend the City Council authorize the solicitation of applications for a new medical cannabis delivery businesspermit holder. A tentative application schedule is as follows:
Date Milestone
August 21, 2024 Application period opens
October 29, 2024 Application period closes
October 29 — November 25, 2024 Application review and interviews December 3, 20224 City Council adopts resolution of intent to award permit FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Dependent on City Council direction.
FOLLOW UP ACTION: Implement Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda in compliance with the Brown Act.
ATTACHMENTS:
1. Notice of Suspension — September 29, 2021
2. Notice of Revocation — May 15, 2023
3. Appeal of revoked Medical Cannabis Delivery Service Permit — May 25, 2023
4. City of Avalon Medical Cannabis Delivery Business Permit application j4’pfAvq1on
Santa catalina Island CA
September 29, 2021
Carl Johnson, Steven Brereton, and LeNay CoboCJMH Group, Inc. dba Catalina Connect P0 Box 63
Ava Ion, CA 90704
Sent via USPS Certified Mail and email: ç johnsonenterriyhoo.com & 99c.rr.coni Dear Mr. Johnson and Mr. Brereton,It has come to the City of Avalon’s attention that CJMH Group, Inc., dba Catalina Connect may be out of compliance with operation’s terms of its medical cannabis delivery services permit as established by theAvalon Municipal Code.
Per Title 5, Chapter 20, Section 10 (c):
It is the responsibility of the owners and operators of the medical cannabis delivery service business to ensure that it is, at all times, operating in a manner compliant with all applicablestate and local laws, and any regulations promulgated thereunder.
Compliance with all applicable State laws and regulations is also required by AMC Sections 5-20.030 (a),(1) and 5-20.090 (a), and 5-20.110 (a).At this time, according the an Entity Status Letter provided by the State of California Franchise Tax Boardon September 27, 2021, CJMH Group, Inc. (Entity Number 4052346) is currently not in good standingwith the Franchise Tax Board. As such, CJMH Group, Inc. is not in violation of Avalon Municipal Code provisions that require compliance with State laws and regulations.
On Tuesday, September 21, 2021, Mr. Brereton arrived to City of Avalon City Hall and advised the vehicleclerk the commercial autoette issued to Carl Johnson on behalf of CJMH Group needs to be transferred inownership as his partner has been “fired.” A temporary permit was issued for the vehicle citing “personal problems”.
Please be advised, pursuant to the AMC Section 5-20.070 (b):
1. No person may transfer ownership or control of a medical cannabis delivery service business ortransfer any medical cannabis delivery service business permit issued under this Chapter. Medical cannabis service business permits are not property right, and permittees have no economic interest in any permit issued to them. Permittees have no right to sell or transfer a medicalcannabis delivery service business permit to another party, or to have the City Council consider Avalon City Hall i 410 Avalon Canyon Road • P0 Box 707 . Avalon, CA 90704-0707 Telephone: 310.510.0220 • Facsimile: 310.510.0901 . www.CityofAvalon.com whether they should authorize the transfer of a medical cannabis delivery business permit to another party. Any attempt to transfer ownership of a medical cannabis delivery service businessor ofa medical cannabis delivery service business permitshall render the medical cannabis delivery services business permit void.
2. Any attempt to transfer a medical delivery services business permit or a medical cannabisdelivery services business shall result in the medical cannabis delivery service business permit being declared immediately revoked and/or it is void and no longer of effect.
3. In any situation where a permit has been lost as a result of an attempted transfer of the medicalcannabis delivery services business permit or of the medical cannabis delivery services business, or as a result of the abandonment or revocation of the permit, any new permit shall be issued usingthe standard processfor the issuances ofpermits in the first instance. No preference shall be given to any person proposed as new owner or assignee by the former permit holder, In such case, priorto accepting any new applications, the City shall post the availability of the medical cannabisdelivery series business permit at issue on the City’s website. The City Manager or his/her designeemay take other action to help ensure the broadest pool of applicantsfor the new permit.
At this time, due to questions surrounding the ownership and operational structure of the business aswell as issues regarding compliance with the State of California Franchise Tax Board, the standing permit issued to CJMH Group to provide medical cannabis delivery services shall be suspended for an indefiniteperiod of time, effective immediately.
When ready, please contact the City of Avalon to determine next steps in providing the documentation necessary to mitigate any questions regarding ownership and operations structure and potentially restore your permit.
Please be advised that this decision may be appealed in writing within 10 days in accordance with AMC Section 5-20.060.
Please do not hesitate to contact my office if you have any questions Sincerely,
Devin Hart
Administrative Analyst
Enclosures: Entity Status Letter dated September 27, 2021 Copy of temporary commercial autoette permit
cc: Denise Radde, City Manager
City Attorney’s Office
Avalon Station Commander, Los Angeles County Sheriff Department OSTATE OF CAtJFORNIA L FRANCHISE TAX BOARD FH,R PS BOX 942857 ‘ SACRAMENTO CA 94257-0540 Entity Status Letter
Date: 9/27/2021ESL ID: 5722187769
Why You Received This Letter
According to our records, the following ent:ty information is true and accurate as of the date of this letter.Entity ID: 4052346Entity Name: CJMH GROUP, INC.
1. The entity is in good standing wth the Franchise Tax Board.
2. The entity is not in good standing with the Franchise Tax Board.
D 3. The entity is currently exempt from tax under Revenue and Taxation Code (R&TC) Section 23701 El 4. We do not have current information about the entity.
LI 5. The entity was administratively dissolved/cancelled on through the Franchise Tax Board Administrative Dissolution process.
Important Information• This information does not necessarily reflect the entity’s current legal or administrative status with any other agency of the state of California or other governmental agency or body. • If the entity’s powers, rights, and privileges were suspended or forfeited at any time in the past, or if the entity did business in California at a time when it was not qualified or not registered to do business in California, this information does not reflect the status or voidability of contracts made by the entity inCalifornia during the period the entity was suspended or forfeited (R&TC Sections 23304.1 23304.5,23305a, 23305.1).The entity certificate of revivor may have a time limitation or may limit the functions the revived entity canperform, or both (R&TC Section 23305b).
Connect With UsWeb: ftb.ca.gov
Phone: 800.852.5711 from 7 a.m. to 5 p.m. weekdays, except state holidays 916.845.6500 from outside the United States
TTY/TDD: 800.822.6268 for persons with hearing or speech impairments FTB 4263A WEB (REV l2-2019
City ofAvalon
Santa Catalina Island, CA
KENNETH B. DAPEER
Vehicle Hearing Officer
P ECISION CONDITIONALLY GRANTING APPLICATION FOR A NEW
COMMERCIAL AUTOETTE PERMiT
APPLICANT:
CJMH Group dba Catalina Connect
P.O. Box 542
Avalon, CA 90704
FINDiNGS OF FACT AND CONCLUSIONS OF LAW
1. Prior to May 13, 2019, Carl Johnson, on behalf of CJMH Group dba Catalina Connect, Applicant herein, applied for a new commercial autoettepermit pursuant to Section 4-4.1703(c) of the Avalon Municipal Code.2. The Hearing Officer considered the application at a duly noticed hearingon May 14, 2019, at which time both oral and written evidence was received.
Carl Johnson appeared for CJMH Group. Dudley Morand, Administrative Assistant for the City of Avalon, was also present and participated in the hearing.
3. CJMH Group dba Catalina Connect is a medical marijuana dispensary which is in the process of establishing operations in Avalon. The proposed autoette will be utilized to transport product and make deliveries of cannabis products to customers
4. The proposed vehicle must be approved by the Vehicle Clerk and conform to the approved size. Further, in order to comply with State marijuana requirements, the vehicle may need certain modifications.
5. The Applicant claims that overnight offstreet parking is available at 11 4 r’ 1 r,
6. The Applicant claims he is in the process of completing the approval process and being granted a business license.
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DECISION
The Hearing Officer hereby conditionally grants the application for a new commercial autoette permit for a period of one year.
The granting of this permit is conditioned upon confirmation that the business entity has a current Avalon business license and has been approved for cannabis sales by all applicable State, County and City government agencies. Further, the use of the autoette shall be primarily for business purposes.
Applicant shall relinquish the permit and not operate the vehicle if, at any time, any of the medical marijuana permits issued by governmental agencies to the Applicant become no longer active, no longer in good standing, or if Applicant fails to possess or maintain any permit required for the operation of a marijuana dispensary.
Applicant is advised to take this Decision, along with the title documents, promptly to the City Vehicle Clerk to have said permit issued to theappropriate vehicle. The Applicant is further advised to carefully note the expiration date for such permit.
Jurisdiction is maintained for the City to set a further Vehicle Hearing prior to the one year renewal date to evaluate the business operation and to consider and impose additional conditions or modifications that may be necessary.
Applicant is advised that this decision may be appealed to the Avalon City Council pursuant to Title 1, Chapter 4 by submitting a written notice ofsuch appeal setting forth the specific grounds thereof within fifteen <15> days after the receipt of written notice of such action appealed from. A copy of the applicable code section is attached.
IT IS THE RESPONSIBILITY OF THE PERMIT HOLDER TO SUBMIT A
RENEWAL APPLICATION FOR THE PERMIT GRANTED PURSUANT TO THIS
DECISION PRIOR TO ITS EXPIRATION, FAILURE TO TIMELY APPLY FORRENEWAL OF THIS PERMIT MAY RESULT IN THE LOSS OF THE RIGHT TO RENEWDated: May 22, 2019
/ /
/NNETHJLER
Vehicle Hearing Officer
PROOF OF SERVICE
I am a resident of the county of Los Angeles, State of California. I am over the age of 18 years and not a party to the within action. My address is 11500 W.
Olympic Blvd., Suite 550, Los Angeles, CA 90064-1524.
I served the foregoing document described as DECISION, etc., by depositing a true copy thereon in the United States Mails in Los Angeles, State of California, on May 22, 2019, enclosed in a sealed envelope, with the postage fully prepaid, addressed as follows:
CJMH Group dba Catalina Connect
P.O. Box 542
Avalon, CA 90704
Dudley Morand, Admin. Asst.
City of Avalon
P.O. Box 707
Avalon, California 90704
I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 22, 2019, at Los Angeles, California.
a ia Martin z, Declarant
il1OI6 4 1 PM
CHAPTER 4 .- APPEALS
Sec. 14.01 Right to Appeal.
(a) Except as otherwise specilcally provided in this Code, any person excepting to the denial. suspension. or re\ ocition of a permit applied for or held by him pursuant to any decision made b\ any appointive hoard Of the City pursuant to any of the provisions of this Code may appeal in writing to the Cruncil by filing with the City Clerk a written notice of such appeal selling forth the specific grounds thereof. (b) Except as otherwise specifically provided in this Code, any person excepting to any administrative decision made by any official of the City pursuant to any of’ the provisions of this Code mayappeal ; writing to the Council by filing with the City Clerk a written notice of such appeal setting forth the specific grounds thereof.
Amended by § I . Ord. 620. elf. March I 8. 1 76
Sec. 1-4.02 Time Within Which an Appeal Shall he Filed.
Ihe vv ritten notice of appeal shall be filed with the City Clerk withiii fifteen (15) days after the receipt of written notice of such action appealed from.
I .Ord. 782.eff, November 13, 1Q85)
See. 1-4.03 Hearing: Notice.
l’he (‘itv Clerk shall forthwith set such matter for a hearing before the Council at a subsequent regular meeting and shall cause a notice thereof to be given to the applicant not less than five (5) days prior to such hearing, unless such notice is waived in writing by the applicant. At such hearing the appellant shall show cause on the grounds specified in the notice ol’ appeal why the action excepted to should not be approved. The Council ma continue the heari n I rem tine tu time. and its Ii tidings on the appeal shall he Ii na andconclusive in the matter. iER4APPEALSPubhshed by ClerkBase2O16 by Clekbase No Cnm to Origna Government Works ‘
City of Ava Ion
/ Santa Catalina Island. CA
April 17, 2023
Carl Johnson & Steven BreretonCJMH Group, Inc. dba Catalina Connect P0 Box 63
Avalon, CA 90704
Sent via USPS Certified Mail and erriall: carohriso e tc’rr s(jiv:l...c uli & .irvtY’)thca rrom Dear Mr. Brereton and Mr. Johnson,
As you are aware, on September 29, 2021, the City of Avalon notified CJMH Group, Inc., dba Catalina Connect (CJMH), that their medical cannabis delivery services permit was suspended due to noncompliance with permit terms as established by the Avalon Municipal Code (AMC).Per AMC Section 5-20.010 (c):
It is the responsibilities of the owners and operators of the medical cannabis delivery service business toensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder.At the time, according to an Entity Status Letter provided by the State of California Franchise Tax Boardon September 27, 2021, CJMH Group, Inc. (Entity Number 4052346) was not in good standing with the Franchise Tax Board.
On November 3, 2021, the City received notification that CJMH had received a letter of good standingfrom the State of California Franchise Tax Board; however, the correspondence on September 29, 2021additionally noted an issue regarding questions on CJMH’s ownership and operational structure.
Per AMC Section 5-20.070 (b):
1. No person may transfer ownership or control of a medical cannabis delivery service business or transfer any medical cannabis delivery service business permit issued under this Chapter. Medical cannabis service business permits are not property right, and permiltees have no economic interest in any permit issued to them. Permittees have no right to sell or transfer a medical cannabis delivery service business permit to another party, or to have the City Council consider whether they should authorize the transfer of a medical can nabi5 delivery business permit to another party. Any attempt to transfer ownership of a medical cannabis delivery service businessor of a medical cannabis delivery service business permit shall render the medical cannabis delivery services business permit void.
Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 -Avalon, CA- 90704-0707 Telephone: 310-510-0220 -www.CityofAvalon .com
2. Any attempt to transfer a medical delivery services business permit or a medical cannabis delivery services business shall result in the medical cannabis delivery service business permit beingdeclared immediately revoked and/or it is void and no longer of effect.
3. In any situation where a permit has been lost as a result of an attempted transfer of the medical cannabis delivery services business permit or of the medical cannabis delivery services business, or as a result of the abandonment or revocation of the permit, any new permit shall be issued using the standard process for the issuances of permits in the first instance. No preference shall be given to any person proposed as new owner or assignee by the former permit holder. In such case, priorto accepting any new applications, the City shall post the availability of the medical cannabis delivery series business permit at issue on the City’s website. The City Manager or his/her designeemay take other action to help ensure the broadest pool of applicants for the new permit.
The issue regarding ownership and operational structure remains. City Staff have met with Mr. Brereton and Mr. Johnson and it appears an amicable resolution regarding ownership will not be met. It is the City’s determination that a transfer of the permit ownership has been attempted both by Mr. Brereton and Mr.
Johnson — each indicating they wish to operate without the other.
As cited in the above quoted portion of the AMC (Section 5-20.070 (b) 1), “Any attempt to transferownership of a medical cannabis delivery service business or of a medical cannabis delivery servicebusiness permit shall render the medical cannabis delivery services business permit void.” Therefore, effective immediately, the medical cannabis delivery services permit is hereby revoked.
Be advised that this decision may be appealed in writing within 10 calendar days in accordance with AMC Section 5-20.060. Please provide any written appeal to the City Manager’s office by no later than Monday, April 27 at 4 p.m.Sincerely,
Devin HartManagement Analyst
cc: David Maistros, City Manager
Scott Campbell, City Attorney
Carl L. Johnson
307 Descanso Ave.
P0 Box 542
Avalon, CA 90704
CaçtnaConnect.cgm
1 (310) 749-5906
May 25, 2023
City of Avalon — City Manager’s Office
410 Ava Ion Canyon Road
P0 Box 707
Ava Ion, CA 90704
dthompsonç[yofavalori. corn
1 (310) 510-0220
Subject: Appeal of Revoked Medical Cannabis Delivery Service Permit Dear City Manager of Ava Ion,
I hope this letter finds you well. I am writing to formally appeal the revocation of the medical cannabis delivery service permit issued to CJMH Group, Inc. doing business as Catalina Connect (hereinafter referred to as “Catalina Connect”) by the City of Avalon. As a 40% owner of CJMH Group, Inc., and the original founder of the company, lam deeply committed to rectifying thecurrent situation and ensuring compliance with all applicable regulations.
Allow me to introduce myself and establish my connection to Catalina Connect. My name is Carl 1, Johnson, and I have been actively involved with Catalina Connect as the President/CEO, serving as the main point of contact since its inception. I have dedicated my efforts to developing a reputable and compliant medical cannabis delivery service that benefits the community and upholds the integrity of the cannabis industry.
I am writing to you today with a clear intention — to formally appeal that revocation of the medical cannabis delivery service permit issued to Catalina Connect by the City of Avalon. The permit revocation has had a significant impact on our operations and the local community. And I believe that by addressing the following crucial points, we can work together to find a resolution that allows Catalina Connect to resume its operations in compliance with all applicable regulations.I would like to bring to your attention several crucial points in support of this appeal:
1. Compliance Efforts: Throughout my tenure as the main point of contact and President/CEO of Catalina Connect, I have consistently prioritized compliance with all state and local laws and regulations governing medical cannabis delivery services. I have proactively addressed compliance matters, remained responsive to the city’s requests, attended all meetings prepared, and provided prompt responses to any inquiries related to compliance matters. This commitment to compliance is reflected in the initial acquisition of the medical cannabis license and subsequent positive feedback from city officials.
2. Lockout and Fiduciary Duty: On September 21, 2021, I was wrongfully locked out of the business premises by my estranged business partner, Mr. Steve Brereton. This lockout severely impacted my ability to fulfill my fiduciary duty and maintain compliance with local regulations. As the owner with 40% stake in the company, I am entitled to access the business premises and the necessary financial records to address any outstanding compliance issues. The lockout has prevented me from rectifying any potential deficiencies promptly.
3. Ownership Dispute: The ongoing ownership dispute between Mr. Brereton and myself has created an impasse regarding the future of Catalina Connect. I want to clarify that I am not seeking a transfer of ownership but rather reinstatement as the President/CEO and the ability to resume operations in compliance with all applicable regulations. As the driving force behind the acquisition of the medical cannabis license and possessing the required expertise, I am well-equipped to lead Catalina Connect successfully.
4. Legal Proceedings: in response to the breach of fiduciary duty, embezzlement of corporate assets, improper removal, and other violations of the law committed by Mr.
Brereton, I intend to pursue legal action. My legal counsel has confirmed these actions and identified a pattern of similar conduct in Mr. Brereton’s past business endeavors.
These ongoing legal proceedings are crucial to protecting the interests of Catalina Connect and ensuring compliance with the law. I believe that the ongoing legal proceedings will ultimately vindicate my position and restore Catalina Connect to its rightful state.
5. Expertise and Contributions: My expertise and contributions to the cannabis industry have been recognized and praised by city officials during the license acquisition process, I played a pivotal role in developing regulations that allowed the Catalina Island community to participate in the legal cannabis market, as evidenced by the successful advocacy for the carveout provision. Moreover, my continued involvement in the industry, including speaking at the Texas State Capitol and invitations to speak at a federal level, further attests to my dedication and expertise in the field.
In conclusion, I respectfully request that you review this appeal and reconsider the revocation of the medical cannabis delivery service permit issued to Catalina Connect. I am eager to cooperate fully with the City of Avalon in resolving any outstanding compliance issues and restoring the operations of Catalina Connect, which will benefit both the local community and the cannabis industry at large.
Please find attached supporting documents, to substantiate the claims made in this appeal.
Furthermore, I would like to inform you that additional relevant correspondence and records, further supporting my case, will be provided during the hearing — pursuant to “5-20.060 Appeals: Appeal Hearing, (3) At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. (4) At the conclusion of the hearing, the City Council may affirm, reverse, or modify the decision appealed Additionally, I will also deliver a physical copy of this appeal to the City Manager’s Office.
Thank you for your attention to this matter. I appreciate your understanding and support. 1 look forward to a positive resolution that allows Catalina Connect to continue serving the community and adhering to all necessary regulations.
Sincerely,
/
/
.1 /#(
Carl Johnsorv
Exhibits
Attachments:
1. Exhibit A: Certified Mail Receipt
2. Exhibit B: Lockout Incident Documentation
3. Exhibit C: Corporate Bylaws
4. Exhibit D: State of California Department of Tax and Fee Administration Letter
5. Exhibit E: Industry Contributions and Recognitions
Note: The following attachments have been provided to support my appeal and are organized,paginated, and labeled accordingly for ease of reference.
Please find attached the supporting documents that substantiate the claims made in my appeal.
The documentation is presented in an organized and labeled manner, as outlined below:
Exhibit A
Certified Mail Receipt
This exhibit provides a copy of the certified mail receipt showing the delivery of the appeal letter to the City Managers Office. It serves as proof of timely submission. (included within emailed copy & physical copy of this appeal to City Hall) —7-
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Exhibit B
Lockout Incident
Docu mentation
This exhibit includes relevant documentation related to the lockout incident on September 21, 2021. It consists of:
a. Instructions on how to obtain “public records” from LASD, as I am unable to request them myself.
b. Picture of Steve Brereton and LeNay Cobo removing documents from the licensed premise.
c. The Department of Cannabis Control (DCC) regulation that defines owners vs financial interest holders.
d. The DCC regulations for General Record Retention Requirements Exhibit B (a)
Instructions on how to obtain “public records” from LASDJ as I am unable to request them myself:
1. Contact Public Records
a. Request Public Records and Provide the following
information:
I.Public Records Phone Number is:
1. (562) 345-4426
ii. Provide the Date of the incident:
1. September 21, 2021
iii. Provide Names:
1. Steven Brereton:
a. CADL#M0985840
b. DOB: 11/19/1946
• c. Address: 213 E. 21st Street Costa Mesa, CA
92627
2. Carl Johnson:
a. CADL#A2268243
b. DOB: 03/19/1988
c. Address: PC Box 542 Ava Ion, CA 90704
2. Also: Make Request for Documents from the Local Station a. For all documentation related to this incident
b. For any/all documentation for the multiple times in the following 3 months that Steve Brereton is known to attempt pressing criminal charges against Carl Johnson.
i. Please note that all his attempts failed to demonstrate that a crime had been committed
ii. LASD determined that NO crime was committed
& that the issue was
a business matter amongst
business partners.
Exhibit B (b)
Picture of Steve Brereton and LeNay Cobo removing documents from the licensed premise.
3 I.
Exhibit B (c)
The Department of Cannabis Control (DCC) regulation that defines owners vs fnandal interest holder.
15OO3. Owners of Commercial Cannabis Businesses.
(a) An applicant for a commercial cannabis license or a licensee shall disclose all owners of the commercial cannabis business. An owner of the commercial cannabis business includes all of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the commercial cannabis business, unless the interest is solely a security, lien, or encumbrance. For purposes of this section, ‘aggregate” means the total ownership interest held by a single person through any combination of individually held ownership interests in a commercial cannabis business and ownership interests in an entity that has an ownership interest in the same commercial cannabis business. For example, a person who owns 10 percent of the stock in a commercial cannabis business as an individual shareholder and 100 percent of the stock in an entity that owns 10 percent of the stock in the same commercial cannabis business has a 20 percent aggregate ownership interest in the commercial cannabis business. (2) An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
(A) A member of the board of directors of a nonprofit.
(B) A general partner of a commercial cannabis business that is organized as a partnership. (C) A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company. (D) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust. (E) The chief executive officer, president or their equivalent, or an officer, director, vice president, general manger or their equivalent. (b) If the commercial cannabis business is owned in whole or in part by an entity and the entity includes individuals who manage, direct, or control the operations of the commercial cannabis business, as described in subsection (a)(2)(E), those individuals shall also be disclosed as owners.
(c) If available evidence indicates that an individual qualifies as an owner, the Department may notify the applicant or licensee that they must either disclose the individual as an owner and submit the information required by section 15002 or demonstrate that the individual does not qualify as an owner.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26012, Business and Professions Code.
§1 5004. Financial Interest in a Commercial Cannabis Business. (a) An applicant for a commercial cannabis license or a licensee shall disclose all financial interest holders. A financial interest holder of the commercial cannabis business includes all of the following, except as provided in subsection (b):
(1) A person with an aggregate ownership interest of less than 20 percent. (2) A person providing a loan to the commercial cannabis business. (3)Aperson entitled to receive 10 percent or more of the profits of the commercial cannabis business, including:
(A) An employee who has entered into a profit share plan with the commercial cannabis business.
(B) A landlord who has entered into a lease agreement with the commercial cannabis business for a share of the profits.
(C) A consultant who is providing services to the commercial cannabis business for a share of the profits.(D) A person acting as an agent, such as an accountant or attorney, for the commercial cannabis business for a share of the profits. (E) A broker who is engaging in activities for the commercial cannabis business for a share of the profits.
(F) A salesperson who earns a commission.
(b) Financial interest holders do not include any of the following:(1) A bank or financial institution whose interest constitutes a loan; (2) Persons whose only financial interest in the commercial cannabis business is through an interest in a diversified mutual fund, blind trust, or similar instrument; (3) Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business; and (4) Persons who hold a share of stock that is less than 10 percent of the total shares in a publicly traded or privately held company.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051.5, Business and Professions Code.
Exhibit B (d)
The DCC regulations for General Record Retention
Requirements.
§15037. General Record Retention Requirements.
(a) Licensees must keep and maintain records in connection with the licensed commercial cannabis business. Records must be kept for at least seven years from the date of creation, unless a shorter time is specified. Records include, but are not limited to:
(1) Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901.
(2) Personnel records, including each employee’s full name, Social Security number or individual taxpayer identification number, date employment begins, and date of termination of employment, if applicable.
(3) Training records including, but not limited to, the content of the training provided and the names of the employees who received the training.
(4) Contracts regarding commercial cannabis activity.
(5) Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity.
(6) All other documents prepared or executed by an owner or their employees or assignees in connection with the licensed commercial cannabis business. (7) Records required by the Act or this division.
(b) Records must be kept in a manner that allows the records to be produced for the Department in either hard-copy or electronic form.
(c) Records must be legible and accurate. No person may intentionally misrepresent or falsify records. (d) Records must be stored in a secured area where the records are protected from debris, moisture, contamination, hazardous waste, and theft.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26160 and 26161, Business and Professions Code.
Exhibit C
Corporate Bylaws
This exhibit contains a copy of the original corporate bylaws that were signed by both Steve Brereton and Carl Johnson. The relevant provisions that grant me the tie-breaking vote as the President/CEO are highlighted.
BYLAWS OF CJMH GROUP, INC.
A California Mutual Benefit Corporation
ARTICLE I NAME
The name of this corporation shall be: CJMH Group, Inc.
ARTICLE II OFFICESSECTION 1. PRINCIPAL OFFICE
The principal office for conducting the activities of the Corporation (principal executive office”) is located in the State of California, County of Los Angeles.
The directors may change the principal office from one location to another. Any change of this location shall be noted by the secretary on these bylaws opposite this section, or this section may be amended to state the new location.
SECTION 2. OTHER OFFICES
The Board of Directors may at any time establish branch or subordinate offices at any place or places where the corporation is qualified to conduct its activities.
ARTICLE III OBJECTIVES AND PURPOSES
The stated objectives and specific purposes of this corporation shall be to facilitate or coordinate medical marijuana transactions between patient members and/or primary caregiver members.
DEDICATION OF ASSETS
The properties and assets of this nonprofit corporation are irrevocably dedicated to the fulfillment of the Objectives and Purposes of this corporation as set forth in Article III hereof. No part of the net earnings, properties, or assets of this corporation, on dissolution or otherwise, shall inure to the exclusive benefit of any private person or individual, or any member or director of this corporation except in fulfillment of said Objectives and Purposes. On liquidation or dissolution, all properties and assets and obligations shall be distributed pursuant to the nonprofit provisions of the California Corporations Code then in effect.
ARTICLE IV NO MEMBERSThe corporation shall have no voting members within the meaning of the California Corporations Code. The corporation’s board of directors may, in its discretion, admit individuals to one or more classes of nonvoting members; the class or classes shall have such rights and obligations as the board finds appropriate.
This corporation may refer to persons or entities associated with it as “members,” even though those persons or entities are not voting members, and no such reference shall constitute anyone as a member within the meaning of Corporations Code section 5056.
ARTICLE V DIRECTORS
SECTION 1. NUMBER OF DIRECTORS
The board of directors shall consist of at least one (1) but no more than three (3) directors unless changed by amendment to these bylaws. The exact number of directors shall be fixed, within those limits, by a resolution adopted by the board of directors.
SECTION 2. QUALIFICATIONS
Directors shall:
a) be at least eighteen years of age,b) be a resident of the State of California, b) be a patient or primary caregiver, as defined by CA Health and Safety Code §11362.5 et seq; and
c) possess a valid physician’s recommendation for medical cannabis or valid authorization to act as a primary caregiver for a patient in possession of a valid physician’s recommendation.
SECTION 3. POWERS
Subject to the provisions and limitations of the California Nonprofit Mutual Benefit Corporation Law and any other applicable laws, the corporation’s activities and affairs shall be managed, and all corporate powers shall be exercised, by or under the direction of the board.
It shall a)
b)
c)
ci) e)
SECTION 4. DUTIES be the duty of the directors to:
Perform any and all duties imposed on them collectively or individually by law, by the articles of incorporation, or by these bylaws; Appoint and remove, employ and discharge, and, except as otherwise provided in these bylaws, prescribe the duties and fix the compensation, if any, of all officers, agents, and employees of the corporation; Supervise all officers, agents, and employees of the corporation to assure that their duties are performed properly; Meet at such times and places as required by these bylaws; Register their addresses with the secretary of the corporation, and notices of meetings mailed or telegraphed to them at such addresses shall be valid notices thereof.
SECTION 5. PLACE OF MEETINGS
Meetings shall be held at the principal office of the corporation unless otherwise provided by the board or at such other place as may be designated from time to time by resolution of the board of directors.
SECTION 6. ADDITIONAL MEET1NGSRegular meetings of the board may be held at such times as the board may from time to time determine. Special meetings of the board may also be called at any time by the President or by a majority of the directors then in office.
SECTION 7. NOTICE OF MEETINGS
No notice need be given of any annual or regular meeting of the board. Notice of a special meeting of the board shall be given by service upon each director in person or by mailing the same to him at his or her post office address as it appears upon the books of the corporation at least two business days (Saturdays, Sundays and legal holidays not being considered business days for the purpose of these byLaws) if given in person, or at least four business days, if given by mailing the same, before the date designated for such meeting specifying the place, date and hour of the meeting. Whenever all of the directors shall have waived notice of any meeting either before or after such meeting, such meeting shall be valid for all purposes. A director who shall be present at any meeting arid who shall not have protested, prior to the meeting or at its commencement, the lack of notice to him, shall be deemed to have waived notice of such meeting. In any case, any acts or proceedings taken at a directors’ meeting not validly called or constituted may be made valid and fully effective by ratification at a subsequent directors’ meeting that is legally and validly called. Except as otherwise provided herein, notice of any directors’ meeting or any waiver thereof need not state the purpose of the meeting, and, at any directors’ meeting duly held as provided in these bylaws, any business within the legal province and authority of the board may be transacted.
SECTION 8. QUORUM FOR MEETINGS
At any meeting of the board, a majority of the directors then in office shall be necessary to constitute a quorum for the transaction of business. However, should a quorum not be present, a majority of the directors present may adjourn the meeting from time to time to another time and place, without notice other than announcement at such meeting, until a quorum shall be present.
SECTION 9. VOTING
At all meetings of the board, each director shall have one vote. In the event that there is a tie in any vote, the President shall have an additional vote to be the tie-breaker, SECTION 10. REMOVAL
Any director may be removed for cause by vote of the board provided there is a quorum of not less than a majority present at the meeting at which such action is taken.
SECTION 11. RESIGNATION
Any director may resign from office at any time by delivering a resignation in writing to the board of directors, and the acceptance of the resignation, unless required by its terms, shall not be necessary to make the resignation effective.
SECTION 12. VACANCIES
Any newly created directorships and any vacancy occurring on the board arising at any time and from any cause may be filled by the vote of a majority of the directors then in office at any directors’ meeting. A director elected to fill a vacancy shall hold office for the unexpired term of his or her predecessor.
SECTION 13. PARTICIPATION BY TELEPHONE
Any one or more members of the board or any committee thereof may participate in a meeting of the board or such committee by means of a conference telephone or similar communications equipment allowing all persons participating in the meeting to hear each other at the same time. Participation by such means shall constitute presence in person at a meeting.
ARTICLE VI OFFICERS
SECTION 1. DESIGNATION OF OFFICERS
The officers of the corporation shall be a president, chief financial officer and secretary. The corporation may also have a chairperson of the board, one or more vice presidents, assistant secretaries, assistant treasurers, and other such officers with such titles as may be determined from time to time by the board of directors.
SECTION 2. QUALIFICATIONS
Officers shall:
1. a) be at least eighteen years of age,
2. b) be a resident of the State of California,
c) be a patient or primary caregiver, as defined by CA Health and Safety Code §11362.5 et seq; and d) possess a valid physician’s recommendation for medical cannabis or valid authorization to act as a primary caregiver for a patient in possession of a valid physician’s recommendation.
SECTION 3. ELECTION AND TERM OF OFFICE
Officers shall be elected by the board of directors, at any time, and each officer shall hold office until he or she resigns or is removed or is otherwise disqualified to serve, or until his or her successor shall be elected and qualified, whichever occurs first.
SECTION 4. REMOVAL AND RESIGNATION
Any officer may be removed, either with or without cause, by the board of directors, at any time. Any officer may resign at any time by giving written notice to the board of directors or to the president or secretary of the corporation. Any such resignation shall take effect at the date of receipt of such notice or at any later date specified therein, and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.
SECTION 5. VACANCIES
Any vacancy caused by the death, resignation, removal, disqualification, or otherwise, of any officer shall be filled by the board of directors. In the event of a vacancy in any office other than that of president, such vacancy may be filled temporarily by appointment by the president until such time as the board shall fill the vacancy. Vacancies occurring in offices of officers appointed at the discretion of the board may or may not be filled as the board shall determine.
SECTiON 6. DUTIES OF THE PRESIDENT
The president shall be the chief executive officer of the corporation and shall, subject to the control of the board of directors, supervise and control the affairs of the corporation and the activities of the officers. He or she shall perform all duties incident to his or her office and such other duties as may be required by law, by the articles of incorporation, or by these bylaws, or which may be prescribed from time to time by the board of directors. Unless another person is specifically appointed as chairperson of the board of directors, the president shall preside at all meetings of the board of directors and, if this corporation has members, at all meetings of the members. Except as otherwise expressly provided by law, by the articles of incorporation, or by these bylaws, he or she shall, in the name of the corporation, execute such deeds, mortgages, bonds, contracts, checks, or other instruments which may from time to time be authorized by the board of directors.
SECTION 7. DUTIES OF THE CHIEF FINANCIAL OFFICER The Chief Financial Officer shall:
Have charge and custody of, and be responsible for, all funds and securities of the corporation, and deposit all such funds in the name of the corporation in such banks, trust companies, or other depositories as shall be selected by the board of directors.
Receive, and give receipt for, monies due and payable to the corporation from any source whatsoever.
Disburse, or cause to be disbursed, the funds of the corporation as may be directed by the board of directors, taking proper vouchers for such disbursements.
Keep and maintain adequate and correct accounts of the corporation’s properties and business transactions, including accounts of its assets, liabilities, receipts, disbursements, gains, and losses.
Exhibit at all reasonabie times the books of account and financial records to any director of the corporation, or to his or her agent or attorney, on request therefor.
Render to the president and directors, whenever requested, an account of any or all of his or her transactions as treasurer and of the financial condition of the corporation. in general, perform all duties incident to the office of Chief Financial Officer and such other duties as may be required by law, by the articles of incorporation of the corporation, or by these bylaws, or which may be assigned to him or her from time to time by the board of directors.
SECTION 8. DUTIES OF THE SECRETARY The secretary shall:
Certify and keep at the principal office of the corporation the original, or a copy, of these bylaws as amended or otherwise altered to date.
Keep at the principal office of the corporation or at such other place as the board may determine, a book of minutes of all meetings of the directors, and, if applicable, meetings of committees of directors and of members, recording therein the time and place of holding, whether regular or special, how called, how notice thereof was given, the names of those present or represented at the meeting, and the proceedings thereof.
Ensure that the minutes of meetings of the corporation, any written consents approving action taken without a meeting, and any supporting documents pertaining to meetings, minutes, and consents shall be contemporaneously recorded in the corporate records of this corporation. “Contemporaneously” in this context means that the minutes, consents, and supporting documents shall be recorded in the records of this corporation by the later of (1) the next meeting of the board, committee, membership, or other body for which the minutes, consents, or supporting documents are being recorded, or (2) sixty (60) days after the date of the meeting or written consent.
See that all notices are duly given in accordance with the provisions of these bylaws or as required by law.
Be custodian of the records and of the seal of the corporation and affix the seal, as authorized by law or the provisions of these bylaws, to duly executed documents of the corporation.
Keep at the principal office of the corporation
a membership book containing the name and address of each and any members, and, in the case where any membership has been terminated, he or she shall record such fact in the membership book together with the date on which such membership ceased.
Exhibit at all reasonable times to any director of the corporation, or to his or her agent orattorney, on request therefor, the bylaws, the membership book, and the minutes of the proceedings of the directors of the corporation.
In general, perform all duties incident to the office of secretary and such other duties as may be required by law, by the articles of incorporation, or by these bylaws, or which may be assigned to him or her from time to time by the board of directors.
ARTICLE VII INDEMNIFICATION
The corporation shall, to the extent legally permissible, indemnify each person who may serve or who has served at any time as an officer, director, or employee of the corporation against all expenses and liabilities, including, without limitation, counsel fees, judgments, fines, excise taxes, penalties and settlement payments, reasonably incurred by or imposed upon such person in connection with any threatened, pending or completed action, suit or proceeding in which he or she may become involved by reason of his or her service in such capacity; provided that no indemnification shall be provided for any such person with respect to any matter as to which he or she shall have been finally adjudicated in any proceeding not to have acted in good faith in the reasonable behef that such action was in the best interests of the corporation; and further provided that any compromise or settlement payment shall be approved by a majority vote of a quorum of directors who are not at that time parties to the proceeding.
The indemnification provided hereunder shall inure to the benefit of the heirs, executors and administrators of persons entitled to indemnification hereunder. The right of indemnification under this Article shall be in addition to and not exclusive of all other rights to which any person may be entitled.
No amendment or repeal of the provisions of this Article which adversely affects the right of an indemnified person under this Article shall apply to such person with respect to those acts or omissions which occurred at any time prior to such amendment or repeal, unless such amendment or repeal was voted by or was made with the written consent of such indemnified person.
This Article constitutes a contract between the corporation and the indemnified officers, directors, and employees. No amendment or repeal of the provisions of this Article which adversely affects the right of an indemnified officer, director, or employee under this Article shall apply to such officer, director, or employee with respect to those acts or omissions which occurred at any time prior to such amendment or repeal.
ARTICLE VIII
EXECUTION OF INSTRUMENTS, DEPOSITS, AND FUNDS
SECTION 1. EXECUTION OF INSTRUMENTS
The board of directors, except as otherwise provided in these bylaws, may by resolution authorize any officer or agent of the corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances. Unless so authorized, no officer, agent, or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit or to render it liable monetarily for any purpose or in any amount.
SECTION 2. CHECKS AND NOTESExcept as otherwise specifically determined by resolution of the board of directors, or as otherwise required by law, checks, drafts, promissory notes, orders for the payment of money, and other evidence of indebtedness of the corporation shall be signed by any of the following officers: the president, the treasurer, or the secretary of the corporation.
SECTION 3. FISCAL YEAR
The fiscal year of the corporation shall begin on the 1St day of January and end on the 31st day of December in each year.
ARTICLE IX CORPORATE RECORDS
SECTION A. MAINTENANCE OF CORPORATE RECORDS The corporation shall keep at its principal office in this state:
(a) The original or a copy of its articles and bylaws as amended to date; (b) Adequate and correct books and records of account; and (c) Minutes of the proceedings of its board and any committees of the board.
The minutes and other books and records shall be kept either in written form or in any other form capable of being converted into clearly legible tangible form or in any combination of the two.
SECTION B. DIRECTORS’ RIGHT TO INSPECT
Every director shall have the absolute right at any reasonable time to inspect the corporation’s books, records, documents of every kind, physical properties, and the records of each subsidiary. The inspection may be made in person or by the director’s agent or attorney. The right of inspection ncludes the right to copy and make extracts of documents.
C. Annual Report
The corporation shall cause an annual report to be prepared not later than 120 days after the close of the corporation’s fiscal year. (a) A balance sheet as of the end of that fiscal year and an income statement and a statement of cashflows for that fiscal year.
(b) A description of any transaction in which the corporation was a party, and in which any director or officer of the corporation had a direct or indirect material financial interest (excluding compensation of officers and directors) during the previous fiscal year involving more than fifty thousand dollars ($50,000), or which was one of a number of such transactions in which the same director or officer had a direct or indirect material financial interest (a mere common directorship is not a material financial interest), and which transactions in the aggregate involved more than fifty thousand dollars ($50,000) and the names of the persons involved in such transactions, stating such person’s relationship to the corporation, the nature of such person’s interest in the transaction and, where practicable, the amount of such interest; provided, that in the case of a transaction with a partnership of which such person is a partner, only the interest of the partnership need be stated. (c) A description of any loans, guaranties, indemnifications, or advances aggregating more than ten thousand dollars ($10,000) paid.
The report shall be accompanied by any report thereon of independent accountants, or, if there is no such report, the certificate of an authorized officer of the corporation that the statements were prepared without audit from the books and records of the corporation.
ARTICLE X AMENDMENT OF BYLAWS
These bylaws may be amended or repealed and new bylaws adopted by the vote of a majority of the board of directors at any directors’ meetkig, provided that notice of such action has been sent to all directors in accordance with the notice requirements contained in Article V, Section 7.
ARTICLE Xl DISPOSITION OF ASSETS
Upon dissolution, after providing for all of its debts in compliance with the California Nonprofit Mutual Benefit Corporation Law, the assets of the corporation shall be equally distributed among the directors, or in such manner as the board shall determine.
Exhibit D:
State of California Department
of Tax and Fee Administration
Letter
This exhibit includes a copy of the Entity Letter from the State of Department of Tax and Fee Administration. It consists of:
a. The letter received on September 23, 2021, indicating non-compliance. Please note that I stopped operating on September 9, 2021 — before the state or ‘ocal authorities provided notice.
Exhibit
D
CJMH GROUP, INC.
P0 BOX 542
AVALON CA 90704-0542
=
COLLECTION ACTION
CollectIon action may be taken. To help you understand CDTFA collection procedures, please visIt wvw.cdtfa.ca.gov and download publication 54, Collection Procedures. q Please cut along the line and return the bottom portion with your payment. 2(920) PAYMENT VOUCHER Federal Employer ID: 82-2466523
Voucher Number: 475742346
!I?O1
7 Make check payable and send with the voucher to:
California Department ci Tax and Fee Administration
PC BOX 942879
Sacramento CA 94279-3535
or visit www.cdtfa.ca.gov to pay right now.
CJMH GROUP, INC.
P0 BOX 542
AVALON CA 90704-0542
[ (DIFA USE ONlY j
STATE OF CALIFORNIA
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
P.O. BOX 942879, SACRAMENTO, GA 94279-0001
1-800-400-7115 FAX 1-916-928-6241
www.cdtfa.ca.gov
GAVIN NEWSOM
Governor
YOLANDA RICHARDSCN
Secretory, Government Operations Ager.cy
NICOLAS MADUROS
Director
September 23, 2021
LOOl 2001461
Letter Date:
Letter ID:
Statement of Account
Why we are contacting you:
The California Department of Tax and Fee Administration (CDTFA) records show that you have an outstanding balance for the account(s) and reporting period(s) shown below.
This is a summary of taxlfeelsurcharge/assessment, interest, and penalties. A detailed listing of amounts due is included with this letter. Payment is due immediately for any amount not under appeal or protection of the bankruptcy court. These liabilities may have been previously assessed against you. This statement is not an assessment of taxlfee/surchargelassessment, penalties, or interest that you can appeal.
PAYMENT OPTIONS
You must pay in full unless you are in a payment plan for the amounts listed. Payments can be made online at www.cdtfa.ca.gov and select Make a Payment. If you are paying by check, please write your account number and Letter ID (shown above), on the check and include the attached voucher with your payment. Keep the original notice for your records. Make your check payable to the California Department of Tax and Fee Administration and mail to P.O. Box 942879, Sacramento, CA 94279-7072. If you need additional help, please call the telephone number listed above.
LUD12OD14l1
Amount Due
L Upon Receipt:
$
C
‘4
C
C
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C
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$1,441.90
Enter amount paid
Please write your Account number and tax period end date on your check.
Exhibit E
Industry Contributions and
,Recogn ition
This exhibit presents evidence of my expertise and contributions to the cannabis industry. It includes:
a. The DCC regulation sections (page 90 & 91) that show the carveout provision I advocated for.
b. Picture of the group that spoke at the Texas State Capitol. c. Screenshots of the Eventbrite invitation for the aforementioned event. d. Screenshots of the Hall of Flowers events that I have attended throughout the years. Hall of Flowers is the largest cannabis convention within the largest cannabis marketplace (California) & I continue to attend these events as often as I can.
Exhibit E a)
The DCC reguation sections (page 90 & 91) that show
the carveout provision I advocated for.
§ 15311. Requirements for the Transportation of Cannabis Goods.
The following requirements apply when transporting cannabis goods between licenseesor licensed premises:
(a) Transportation shall only be conducted by persons holding a distributor license under the Act, or employees of those persons. All vehicles and trailers used for transportation shall be owned or leased, in accordance with the Vehicle Code, by the licensee. (b) Prior to transporting any cannabis goods, the licensed distributor shall have a completed sales invoice or receipt that meets the requirements of Business and Professions Code section 26161. The licensed distributor shall only transport cannabis goods listed on the sales invoice or receipt. The sales invoice or receipt may not be altered or changed once transport begins. (c) A licensed distributor employee shall always carry a copy of the distributor’s license and a copy of the QR Code Certificate issued by the Department while engaging in the transportation of cannabis goods. The QR Code Certificate shall comply with the requirements of section 15039, subsection (d) of this division. (d) All vehicles transporting cannabis goods for hire shall be required to have a motor (e) Transportation by means of aircraft, watercraft, drone, rail, human powered vehicle, or unmanned vehicle is prohibited. (f) Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer. (g) Cannabis goods shall be locked in a fully enclosed box, container, or cage that is secured to the inside of the vehicle or trailer. No portion of the enclosed box, container, or cage shall be comprised of any part of the body of the vehicle or trailer. For the purposes of this section, the inside of the vehicle includes the trunk. (h) While left unattended, vehicles and trailers shalt be locked and secured. (i)
A licensed distributor shall not leave a vehicle or trailer containing cannabis goods unattended in a residential area or parked overnight in
a residential area.
(j) At
a minimum,
a licensed distributor shall have
a vehicle alarm system on all transport vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up alarms may also be used. (k) Packages or containers holding cannabis goods shall not be tampered with, or opened, during transport. (I)
A licensed distributor transporting cannabis goods shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of cannabis goods. The licensed distributor may transport multiple shipments of cannabis goods at once in accordance with applicable laws.
A licensed distributor shall not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops. (m) Under no circumstances may non-cannabis goods, except for cannabis accessories and licensees’ branded merchandise or promotional materials, be transported with cannabis goods. (n) Vehicles and trailers transporting cannabis goods are subject to inspection by the Department at any licensed premises or during transport at any time. (o) Notwithstanding subsections (e) through (g) of this section, if it is not operationally feasible to transport cannabis goods inside of a vehicle or trailer because the licensed premises that the cannabis goods will be transported from and the licensed premises that will be receiving the cannabis goods are located within the same building or on the same parcel of land, the cannabis goods may be transported by foot, hand truck, fork lift, or other similar means.
A shipping manifest that complies with this division is required when transporting cannabis goods pursuant to this subsection. (p) Notwithstanding subsection (a) of this section, transportation of cannabis goods may be conducted via waterway to licensees located on Catalina Island. The provisions of this section and other sections regarding vehicle requirements also apply to vessels used to transport cannabis goods via waterway pursuant to this section.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.
Exhibit
E (b)
Picture of the group that spoke at the Texas State
Capitol.
Exhibit E (c)
Screenshots of the invftation for the aforementioned
event.
Please be sure to dress professionafly. (You can
consider the standard to be how you would dress for
a job interview.)
We look forward to seeing everyone there!
Texas Marijuana Policy
Lobby Day
r LO:OOAê4
Exhibit E (d)
Screenshots of the Hall of Flowers events that I have
attended throughout the years.
Hall of Flowers is the largest cannabis convention within the largest cannabis marketplace (California) and 1 continue to attend these events as often as / con.
Hall of Flowers Santa Rosa - Oct. 5-6, 2022
V. Sonoma County Fafrgrounds
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Hall of Flowers
Follow
Questions about this event?
1 xTicket
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Contact tho ()rqanlzer
Hall of Flowers -Palm Springs -May 4-5,2022.
BUYER PASS
H&I of FIowr, t38823 E. Palm Canyon Oriva, Cethadrai City CA 92234 lEkiL!
CompIim.ntary
Ordrr 33977021 79 Order.d hyCrl Johnson on Apnl tj 22, Carl iohnon 21)72 12:07 PM 337?::I iIJI - / I 4I1ff tZPZ
9 Hey Carl
Congratulations’ You have been successfully registered for the Hall of FlowersPaim Springs showl
Your ticket will be emailed to you via Eventbrite as we get closer to the show In the meantime, mark yow calendar with the showdates! 12/8-12/9 Palm Springs CA
Please note, your registration is conditional and subject to change at any time We are strictly limiting the number of tickets allowed per company to two If your company deems that your ticket should be used for another employee, your registration will be cancelled If you have any questions about our event, please leel free to ch lvk with our Retail Team
Best,
Retail Relations Team
AlIx (323)303—3628
Kelsey (323)302-8095
These documents are provided to offer comprehensive support for my appeal. Please refer to the corresponding exhibits for further details and evidence. I will be providing additional documents to offer support for my appeal during the scheduled hearing.
Thank you for your attention to this matter. 1 am confident that the enclosed documentation will help in reevaluating the revocation of the medical cannabis delivery service permit issued to Catalina Connect.
Sincerely,
Carl Johnson
City of Ava Ion
MEDICAL CANNABIS DELIVERY OPERATING PLAN
A Medical Cannabis Delivery Operating Plan (Operating Plan”) is required for all medical cannabis delivery businesses in the City of Avalon (City”). The Operating Plan must address and meet, at a minimum, the requirements as set forth in Avalon Municipal Code (“AMC”) Title 5Chapter 20. Any statements made in the Operating Plan may not supersede any local and/orstate laws, rules, and regulations.
Each section of the Operating Plan should be clearly labeled with a cover sheet for each section. The Operating Plan must have page numbers in the bottom right hand corner. DO NOTstaple or bind the Operating Plan. You may submit the Medical Cannabis Delivery Service Business Application (“Application”) and the Operating Plan in a three ring binder or in an envelope. Both the Application and the Operating Plan must be submitted at the same time.
I. General Description of Services
Each applicant should submit an Operating Plan generally describing their proposed business model. You must identify whether you will be distributing your own products, another businessesproducts, or both. The Operating Plan should provide an account of the proposed day-to-dayoperations of the facility, including a description of each step in the delivery process (transportation, storage, quality assurance, packaging, labeling, etc.) that the medical cannabis delivery business will engage in, and where each step will occur in the facility. Plans should also provide a general description of the types of medical cannabis products that will be distributed from the facility.
II. Security
Applicants should provide a detailed description of their security plans. The security component should be broken down into operational and facility security categories. Appropriate plans will have considered all potential security threats and planned for any contingency needed for these situations. A successful applicant will have both written and physical mechanisms in place todeal with each specific situation. A detailed schematic diagram of alarm systems and security camera placements that also details when all security measures will be operational should be provided.
a. Operational Security
Applicants will detail their operational security including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, confidential information security, and third- party contractor security. This includes storing all finished medical cannabis products in a secured and locked room, safe, or vault, andestablishing limited access areas accessible only to authorized personnel. The security plan should include measures to prevent the diversion of medical cannabis to persons under the ageof 18. The security plan should also consider measures to prevent individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business, and ensure that medical cannabis is not inhaled, smoked, eaten, ingested or otherwise consumed on the property, or in the parking areas of the medical cannabis delivery business property.
This list is not intended to fully capture all areas for applicant consideration but to guide applicants into considering all possible security concerns related to the operation of a medical cannabis delivery facility. The applicant should give consideration to every possible scenario and provide a response to those scenarios.
b. Facility Security
Applicants must review and address Section 5-20.100(B) of the AMC as part of their Operating Plan. Further, applicants should provide a description of the overall facility security. Inparticular, the applicant should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems, and security personnel that will be employed.
The security plan should describe the enclosed, locked facility (incorporated into the building structure, or securely attached thereto) that will be used to secure or store medical cannabis and cash when the location is both open and closed for business. The security plan should alsodetail the steps taken to ensure medical cannabis is not visible to the public. The facility security plan should also discuss the fire and burglar alarm systems. The security plan should identify the company monitoring the alarm, and provide confirmation that the security company is staffed twenty-four (24) hours a day, seven (7) days a week.
Each medical cannabis delivery business shall install and maintain a fully operational digital video surveillance and camera recording system. The medical cannabis delivery facility security plan should further describe the digital video surveillance and camera recording system that willbe used to monitor the front and rear of the property, all public right-of-ways and any parkinglots under control of the medical cannabis delivery business, all points of ingress and egress at the medical cannabis delivery business, all points of sale within the medical cannabis delivery business, all areas within the medical cannabis delivery business where medical cannabis products are to be prepared for delivery, and all limited access areas within the medical cannabis delivery facility.
The video and surveillance system shall, at a minimum, meet the following requirements:
• Capture a full view of the public right-of-ways and any parking lot under the control of the medical cannabis business;
• Provide HD quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the exterior of the medical cannabis delivery business property;
• Record and maintain video for a minimum of forty-five (45) days. Video surveillance and recording records shall be held in confidence by all employees and for legitimate law enforcement activity to resolve criminal activity;
• Medical cannabis delivery businesses are responsible for ensuring that all video or surveillance equipment is properly functioning and maintained, so that playback quality is suitable for viewing and the equipment is capturing the identity of all individuals and activities in the monitored areas;
• The system shall be capable of recording all monitored areas in any lighting conditions and must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees. Medical cannabis delivery businesses must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or room on the permitted premises; • A sign shall be posted in a conspicuous place near each monitored location on the interior or exterior of the premises, stating “All Activities Monitored by Video Camera” or “These Premises are Being Digitally Recorded”, or otherwise advising all persons entering the premises that a video surveillance and camera recording system is in operation at the facility and recording all activity; and • All exterior camera views must be continuously recorded 24 hours a day and all interior cameras views shall be recorded during all hours that the facility is open for business.
In addition to the standards set forth above, the applicant must include in their security plan, compliance with Section 5-20.100(B) of the AMC and state law regulations concerning the same. Any security measures that exceed these standards are highly desirable.
III. Transportation
Applicants should describe the methods that will be used to transport medical cannabis products to and from other medical cannabis businesses. In addition, applicants should detail the security precautions that will be taken to prevent theft or diversion of medical cannabis during transport. This may include securing cannabis products in a locked box affixed to the vehicle, securing the vehicle when unattended, installing alarm systems, motion detectors, or panic buttons within the vehicle, and taking other necessary steps to protect the driver(s) and cannabis products. The applicant must describe how they will comply the provisions set forth in Section 5-20.110 of the AMC and state regulations concerning delivery/transportation services.
IV. Product Storage & Tracking
The Operating Plan should describe the methods that will be used to properly store andsegregate different batches of medical cannabis goods within the delivery facility. This includes a plan to control temperature and humidity, avoid exposure of medical cannabis products to direct sunlight, and prevent the entry of environmental contaminants such as smoke and dust.
The Operating Plan should also identify how medical cannabis will be tracked and monitored to prevent diversion and theft. The Operating Plan should describe how the delivery business willmaintain records of all medical cannabis products, including the level of detail cannabis inventory will be tracked (e.g. origin of shipment, date of transfer, total weight, expiration/sell-by date, etc.). In addition to the foregoing, the applicant must describe how it will comply with state regulations concerning product storage and tracking.
The Operating Plan should provide a description of the point of sale software that the medical cannabis delivery business will utilize to track inventory and sales of medical cannabis, and the internal procedures the medical cannabis delivery business will follow for cash handling and audits.
V. Laboratory Testing & Disposal of Contaminated Products Applicants should also discuss how the medical cannabis delivery business will ensure proper sampling and testing of medical cannabis products prior to receiving a shipment to the medical cannabis delivery business. The Operating Plan should describe the steps that the delivery facility will take when notified from a testing agency that the tested medical cannabis does not meet appropriate health standards. Briefly describe how the medical cannabis delivery business will ensure that rejected medical cannabis is not released to the public. The Operating Plan should also describe the methods that will be used to make medical cannabis waste unusable and unrecognizable, and where medical cannabis waste will be stored prior to removal from the medical cannabis delivery business.
In addition, the Operating Plan should describe how the medical cannabis delivery business will transport medical cannabis waste from the medical cannabis delivery business facility site to a solid waste facility or landfill.
VI. Product Complaints
Applicants should describe policies for receiving, recording and handling product complaints associated with the use of medical cannabis provided by the delivery facility. Policies should include:
• A process for accepting product complaints at the delivery facility; • Identification of data elements to record a complaint (e.g. name of individual submitting complaint, identity of product used, description of events, etc.) • Review of product complaints from appropriate staff;
• Procedure for determining the proper response, which may include contacting the cultivator/manufacturer supplying the product, contacting dispensaries receiving the product, notifying public health authorities; and/or • A process for determining any other additional follow-up that may be needed. • A process for notifying appropriate City staff of complaints received by the medical cannabis delivery business.
VII. Odor Control
Applicants should provide a description of what methods will be used to ensure that odor generated inside the medical cannabis delivery business facility is not detected outside the medical cannabis delivery business property. This should include a description of the odor- absorbing ventilation and exhaust system, and how that system will prevent odor from leaving the medical cannabis delivery business property. The Operating Plan may also describe alternative methods to control odors, such as a carbon filtration or other system. The applicant must also describe how it will comply with the odor control regulations outlined in Section 5-
20.090(B) of the AMC and state laws regulating the same.
VIII. Toxic Material Control
Applicants should provide a description of any toxic, flammable, or other materials that will be used or kept at the medical cannabis delivery business, the location of such materials, and how such materials will be stored. This should include all materials regulated by a federal, State, or local government that would have authority over the medical cannabis delivery business if it was not a medical cannabis delivery business. Applicants should also describe methods used to comply with limitations on discharge into the wastewater system of the City, as set forth in the AMC.
IX. Community Involvement
Applicants should provide a detailed description of their plans to participate in community service within the City. These plans may include, but are not limited to, involvement with non profit associations, neighborhood associations, and community groups. Applicants should demonstrate how they intend to provide their local community with community benefits and mitigate any nuisance and/or negative impacts that the medical cannabis delivery business facility’s existence may cause.
Applicants should show how they plan to have minimal nuisance or negative impacts on their neighbors and community. Nuisance/negative impacts include but are not limited to: noise, odor,increased foot or vehicle traffic, increase in waste or water production, impacts to right of way access, and/or increase in safety related concerns. Applicants should detail how they will revitalize the building/site, provide neighborhood improvements, and will be a beneficial/positiveneighbor to the neighborhood. Applicants must also provide the name, telephone number and email address of a community relations contact as required under Section 5.20-120 of the AMC.
X. Fire Plan
Applicants should provide a detailed description of their fire prevention, suppression, alarm and life safety systems. A fire inspection will be required annually to assure the City that adequate fire safety measures remain in place. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. A detailed description of the fire prevention, suppression, alarm and life safety systems that also includes when all fire prevention measures will be submitted for approval and be operational should be required.
XI. Employee Safety
Applicants should provide a summary of the safety protocols that will be adopted by the delivery facility, including, but not limited to: staff training, protective equipment, hazardous material handling, emergency communication/response, etc. Businesses must conform to all Cal OSHA workplace safety standards, specifically Title 8 of the California Code of Regulations. Applicants should describe the policies and procedures used by the business to help prevent contamination of any medical cannabis product. This may include hand washing, employee training, use of facemasks/gloves, prohibiting employees who are showing signs of illness, openwounds, sores or skin infections from handling cannabis, etc. The applicant must also aver that its employees have read and understand all of the City’s cannabis regulations prior to commencing operations.
THE CITY OF AVALON
MEDICAL CANNABIS
DELIVERY SERVICE BUSINESS
APPLICATION
CITY MANAGER’S OFFICE
410 Avalon Canyon Road
P0 Box 707
Avalon, CA 90704-0707
310.510.0220
dmaistroscityofavaIon .com
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 1
65059.00000\30629236.2
City of Avalon
Medical Cannabis Delivery Service Business Permit Application Instructions Definitions
• Applicant Name: The applicant name entered on this application is your registered legal entity name.
This should be the same business name you used to register with the California Secretary of State. Ifyou are a Sole Proprietor, this is your full legal name. Application name should not be the name of an officer of the legal entity.
• Corporation Number: California Secretary of State Corporation Registration Number. When you register your legal entity with the California Secretary of State you are provided with a corporation registration number.
• Ownership Structure: Type of business entity associated with your business name. Choices are: ForProfit Corporation, Non-Profit Corporation, Limited Liability Company, General Partnership, Limited Partnership and Sole Proprietor.
• Address and Contract Information: The mailing address, phone number, and email address for how the City of Avalon should communicate with you. This address can be different than the business address.
• Proposed Business Location: The physical address where you plan to run your permitted medical cannabis delivery service business. You must have a proposed business location at the time of application and you may not change your proposed business location during the application process. • Community Relations Liaison: Each Medical Cannabis Delivery Service Business shall designate a Community Relations Liaison (‘Liaison”). The Liaison shall receive all complaints regarding the MedicalCannabis Delivery Service Business, and make good faith attempts to promptly resolve all complaints.
To address community complaints and concerns, the name and telephone number for the Liaison shall be made publicly available. Each Medical Cannabis Delivery Service Business Liaison is required torespond by phone or email within three (3) business days of contact by a City official concerning the Medical Cannabis Delivery Service Business. The name and contact information for Liaison of the Medical Cannabis Delivery Service Business shall be conspicuously posted on the main entry doors to the business.
• Seller’s Permit: A person or entity engaged in business in California is required to obtain a Seller’s Permit from the California State Board of Equalization. The requirement to obtain a seller’s permitapplies to individuals as well as corporations, partnerships, and limited liability companies. Both wholesalers and retailers must apply for a Seller’s permit. • City of Avalon Business License: Each property owner of a proposed Medical Cannabis Delivery Service Business needs to obtain a City of Avalon (“City”) business license.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 2
65059.00000\30629236.2
Application Guidelines
The following information is intended to provide general information and guidelines and should not beconstrued as legal advice or as a substitute for legal counsel.
A Medical Cannabis Delivery Service Business is required to obtain both a local permit and a Type M-9 (Medical Non-storefront Retail) state license prior to commencing operations in the City of Avalon (‘City”).. The state law (including but not limited to, the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA), and the local law (the City of Avalon Municipal Code (“AMC”) Title 5, Chapter 20), regulate medical cannibals delivery service businesses and other cannabis businesses and activities, and it is the applicant’s burden to understand and comply with those laws and regulations.
Medical Cannabis Delivery Service Business Permit applications must be submitted to the City of Avalon City Manager’s Office and will be forwarded along to the approving departments.
The application process takes several months from the filing and acceptance of a completed application, and will include inspections of the premise to be permitted. Once all departments have inspected the property and approved the application and all associated plans, the Finance Department will issue a City Medical Cannabis Delivery Service Business Permit to the applicant.
No medical cannabis delivery operations are permitted at a facility until the local and state permits are issued for such operation.
All forms must be typed or legibly printed in blue or black ink. Applications must be accurate and complete in all aspects including applicable documentation as required. Incomplete applications will be rejected. If anyportion of the operating plan for the business is referenced in the applicable sections of the application, you must include the specific section and/or page number of the operating plan.
A checklist is provided with the application for your assistance.Applications for a Medical Cannabis Delivery Service Business Permits must be submitted with a refundable $5,580 application fee. The application fee is based on a good faith estimate of City Staff administrative costs for the application review process.
Checks should be made payable to the “City of Avalon”.
Medical Cannabis Delivery Service Business Permits will not be issued until a Certificate of Occupancy has been obtained for the premises and has passed City of Avalon Fire Department inspections, as applicable.Businesses must apply for a Medical Cannabis Delivery Service Business Permit before they will be considered for a Certificate of Occupancy. Only the person(s) identified within the application will be able to represent the applicant with any transaction or correspondence with the City during the application process. All correspondence originating from the City to the applicant will be sent by mail or email at the City’s discretion.
Any mail will be sent to the mailing address indicated on the application. Emails will only be sent to the applicant/business email listed. Applicants are responsible for maintaining the mailing and email addresseslisted on their application and monitoring mail or email. Applicants must immediately notify the City of any changes to the listed mailing or email addresses.
At the time of application, the applicant will be required to pay all application fees, including but not limited to the background investigation fee.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 3
65059.00000\30629236.2
MEDICAL CANNABIS DELIVERY SERVICE BUSINESS PERMIT APPEALS PROCEDURE I. Appeals from decisions of the City Council andlor the City Manager or his designee(s) regarding MCDSBP selection process.
Unless specifically provided elsewhere to the contrary, whenever an appeal is provided by for as part of this application process, from a decision made by the City Council and/or the City Manager and his or her designee(s), the appeal shall be conducted as prescribed below.
II. Written request for Appeal
(a) Within ten (10) calendar days after the date of a decision by the City Council and/or the City Manager and his or her designee(s) to award the MCDSBP, an aggrieved party may appeal such action by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. (b) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the City Council from time to time.
Ill. Appeal Hearing.
(a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council. The City Council shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the City. (b) The appeal shall be held within a reasonable time after the filing of the appeal, but in no event later than ninety (90) calendar days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) calendar days prior to the date of the hearing. (c) At the hearing the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. (d) At the conclusion of the hearing, the City Council may affirm, reverse or modify the decision appealed. The decision of the City Council shall be final. (e) Notwithstanding the foregoing, the City Council may, in its sole discretion, delegate consideration of the appeal to one or more hearing officers.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued. Medical Cannabis Business Permit Application — Page 4 65059.00000\30629236.2
Application Checklist
LI 1. An interior floor plan of the proposed premises to include the dimensions of interior floor plan, the location of all exit doors, widths of doors and panic hardware, the principal uses of the floor area including where non-patients will be permitted, storage areas, areas for cash handling and storage, andrestricted areas.
LI 2. Photographs accurately depicting the entire interior and exterior of the proposed business site, including entrances, street frontages, parking, front, rear, and sides of the proposed site.
LI 3. A map of any surrounding business and/or residence within approximately 300 feet. Distance does not have to be exact. Google and Bing maps are acceptable. Satellite view preferred.
4. Proof of Worker’s Compensation Insurance. Documents may include quotations from an insurance agency, a “will serve” letter from an insurance agency, and/or formal certificates of insurance. See the FAQ’s on the Medical Cannabis Website for more details.
LI 5. Proof of Liability insurance. Documents may include quotations from an insurance agency, a “will serve” letter from an insurance agency, and/or formal certificates of insurance.
6. Copy of CA Seller’s Permit. NOTE: The Seller’s Permit must be issued to the proposed businesssite.
LI 7. Copy of Fictitious Business Name Filing, if applicable.
LI 8. Corporation, Limited Liability Companies, Limited Liability Partnerships: a. Copy of your Articles of Incorporation! Organization; and b. Copy of your Statement of Information LI 10. Operating Plan to include the information as outlined in the operating plan instructions.
11. if the applicant is not the owner of the proposed business location, a notarized Property Owner Authorization Form. The Property Owner Authorization and Notary must be original. Photocopies will not be accepted.
LI 12. If the applicant is the owner of the proposed business location, a copy of the title or deed to the property.
LI 13. Proof Entity is Registered and in Good Standing with Secretary of State and Franchise Tax Board (website screenshots will suffice).
14. Copy of one (1) fully legible valid government issued form of identification for each Medical Cannabis Delivery Service Business Permit applicant owner and business manager. Please note that Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 5
65059.00000\30629236.2
acceptable forms of government issued identification include, but are not limited to: Driver’s licenses or photo identity cards issued by the Department of Motor Vehicles that meet REAL ID benchmarks, a passport issued by the United States or by a foreign government, U.S. Military ID. cards (active duty or retired military and their dependents), or a Permanent Resident Card.15. Copy of Live Scan receipt/completion for each owner and business manager. If a Live Scan for a City of Avalon Medical Cannabis Delivery Service Business Permit application has been completed within the previous 6 months, include the Live Scan receipt from the previous application in place of a new Live Scan receipt.
The City’s Reservation of Right’s
The City reserves the right to reject any and/or all proposals, with or without any cause or reason. The City may also, modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting a proposal. Late and incomplete proposals WILL BE REJECTED. Furthermore, a proposal RISKS BEING REJECTED for any of the following reasons:
1. Proposal received after the designated time and date.
2. Proposal not containing the required elements, exhibits, nor organized in the required format.
3. Proposal considered not fully responsive to this request for permit application
4. Proposal contains excess or extraneous material not called for in the request for permit application.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued. Medical Cannabis Business Permit Application — Page 6 65059.00000\30629236.2
City of Avalon — Application for Medical Cannabis Delivery Business Permit Type of Permit: LI New LI Renewal
Note: You must submit a separate application for each medical cannabis business. Applicants are limited to the permit categories per MAUCRSA regulations.
APPLICANT INFORMATION
Applicant Name (Corporation/LLC/Partnership/Association/SoIe Proprietor):
Business Name (DBA):
Place and Date of Filing of Fictitious Business Name (DBA):
Applicant/Business Phone:* Applicant/Business Email:*
Mailing Add ress:*
Community Relations Liaison Name:*Community Relations Liaison Email:* Community Relations Liaison Phone:*
Seller’s Permit Number:
Have you ever operated, or do you currently operate, a medical or recreational cannabis business of any kind in the City of Avalon? Li Yes LI No
If yes, Name of Business:
_____________________________________________
Operation Start Date: ________________ * Note: Contact information provided in these fields will be used by the City to communicate with the applicant.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 7
65059.00000\30629236.2
OWNERSHIP STRUCTURE
El For-Profit Corporation LI Limited Liability Company (LLC) El Limited Partnership (LP) LI Non-Profit Corporation LI General Partnership LI Sole Owner Please fill out the follow section associated with the ownership structure selected above.
General or Limited Partnership:
Name of Partnership:
Place and Date of Filing of Articles or Certificate of Partnership or Limited Partnership:
Please Note: Attach certified copies of articles of partnership or limited partnership, or other written evidence of partnership status and all amendments thereto this application.
Sole Owner:
Last Name: First Name:
Home Phone: Cell Phone:
Email Address:
Date of Birth: Place of Birth:
Social Security Number: Driver’s License and Issuing State:
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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65059.00000\30629236.2
Name of Corporation/Limited Liability Company (LLC):
Corporation or Limited Liability Company (LLC)
Corporation/LLC Number:
Date and Place of Incorporation/Organization:
Location Headquarters:
Federal Tax ID Number:
Number of Shares Issued by Corporation: Number of Shares Retained by the Corporation:
Name, Address, Telephone Number, and Email Address of Agent for Service of Process Designated by the Corporation with the California Secretary of State:
Please Note: Attach certified copies of articles of incorporation/organization and statement of information/organization, and all amendments thereto this application.
If the applicant is a corporation, limited liability company, or partnership, list all officers, directors, general partners, and managing members, position held, and percentage owned (if applicable).
Residence Address:
Phone: Email:
Name:Residence Address:
Title:
Name: Title:
Residence Address:
Phone:
Position Held:Date of Birth:
Driver’s License Number:
Email:
Percentage Owned:
Place of Birth:
Issuing State:
Position Held:
Date of Birth:Driver’s License Number:
Phone:
Position Held:Date of Birth:
Driver’s License Number:
Percentage Owned:
Place of Birth:Issuing State:
Email:
Percentage Owned:
Place of Birth:Issuing State:
Name: Title:Residence Address:
Phone: Email:
Position Held: Percentage Owned:
Date of Birth: Place of Birth:
Driver’s License Number: Issuing State:
Attach additional pages if necessary
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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65059.00000\30629236.2
Name: Title:
BUSINESS MANAGERS
List any business managers associated with the medical cannabis business Residence Address:Phone: Email:
Position Held:Date of Birth:
Driver’s License Number:
Name: Title:Residence Address:
Phone: Email:
Position Held: Percentage Owned:Date of Birth: Place of Birth:Driver’s License Number: Issuing State:
Name: Title:Residence Address:
Phone: Email:Position Held: Percentage Owned:
Date of Birth: Place of Birth:
Driver’s License Number: Issuing State:Name: Title:
Residence Address:
Phone: Email:
Position Held: Percentage Owned:Date of Birth: Place of Birth:
Driver’s License Number: Issuing State:
Attach additional pages if necessary
Percentage Owned:
Place of Birth:
Issuing State:
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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Name: Title:
OWNER AND BUSINESS MANAGER DISCLOSURES
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 11
II1
1. Has any owner or manager ever been convicted of, or entered into a plea of guilty or nob contendere to, any felony in the United States or a foreign country? ________ ________ 2. Has any owner or manager ever had a cannabis license or permit suspended or revoked by a city, county, or state? _________ _________ 3. Has any owner or manager ever been denied a cannabis business license or permit by a city, county, or state? _________ _________ 4. Has any owner or manager ever had a City of Avalon license suspended or revoked?
5. Has any owner or manager ever been denied a cannabis business license in the City of Avabon? ________ _________ 6. In the past 3 years, has any owner or manager been sanctioned, fined, enjoined from.found guilty of, or plead guilty or no contest to, any charge of engaging in commercial cannabis activity without the required permits, licenses, registrations, or approvals required by State or local law? ________ _________ If you answered “Yes” to any of the questions above, please provide a written statement detailing the date(s) and circumstances of such denials. suspensions, or revocations including any business names and account numbers. 65059.00000\30629236.2
PROPERTY INFORMATION
Business Site Address:
Assessor’s Parcel Number (APN)
Total Business Square Footage:Terms of Legal Possession for Which Application is Made (Check all that apply):
LI Own LI Lease LI Letter of Property Owner Authorization If leased, provide the terms: Start Date: End Date:
If owned, provide the date of purchase:
If the property is owned or leased, attach a copy of proof of ownership or a copy of the lease.LI Attached is an original fully executed Letter of Authorization for each owner, landlord, and leasing agent of the property listed on the application. The Letter of Authorization is required, even if the applicant owns or leases theproperty.
Note: If the property is owned, rented, or leased by more than one person, a separate authorization form must be submitted for each owner, landlord, and leasing agent or equivalent.
Property Owner Name:
Property Owner Phone:Property Owner Email Address:
Property Owner’s City of Avalon Business License Number:
Describe the proposed use for each interior/exterior room/area at the proposed business site: (Attach additional pages to the application if necessary)
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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BUSINESS OPERATIONS
Establishment Hours of Operation:
DAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY OPEN
CLOSE
Provide a description of the products and services to be provided by the medical cannabis delivery business (Attach additional pages to the application if necessary, or reference the relevant page(s) of the Operating Plan):
Provide a detailed descnption of the business plan to dispose of any medical cannabis or product that is not sold in a manner that protects it from being ingested by an animal or person (Attach additional pages to the application ifnecessary, or reference the relevant page(s) of the Operating Plan):
Provide a detailed description of the Point of Sale System (POS) software the business will be using to track inventory and/or sales of medical cannabis (Attach additional pages to the application if necessary, or reference the relevant page(s) of the Operating Plan):
Please provide a detailed description of all toxic, flammable, or other materials regulated by government agenciesincluding the type of materials, location of materials, and how the materials will be stored. Please also describe how any chemicals or hazardous materials will be used in your business process (Attach additional pages to the application if necessary, or reference the relevant page(s) of the Operating Plan):
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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SECURITY IN FORMATION
Will security guards be on site?
If “Yes,” how many guards will be on site?If “es,” what hours will the guards be on site?
DAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY ARRIVE
DEPART
Will there be surveillance cameras of the site?
If “Yes,” how many surveillance cameras will be on site? If ‘Yes,” will the surveillance cameras be remotely accessible?If “Yes,” please provide a list of all members with access to the surveillance camera system (Attach additional pages to the application if necessary, or reference the relevant page(s) of the Operating Plan):
Will an alarm system be installed?
If “Yes,” please provide the name, address and telephone number of the alarm monitoring company that will be used.NOTE: The company must have a valid business license in the City of Avalon.
Will any of the additional security measures be installed? LI Panic Button LI Sensors to detect entry and exit LI Other:LI Other: LI Other: LI Other:
Please provide a detailed description of the security plan for the proposed business(Attach additional pages to the application if necessary, or reference the relevant page(s) of the Operating Plan):
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
Medical Cannabis Business Permit Application — Page 14
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Type of Vehicle Planned for Use?
DELIVERY VEHICLE INFORMATION Include vessel info?
LI Personal Autoette LI Commercial Autoette* LI Personal Full-Size Vehicle LI Commercial Full-Size Vehicle* Please specify make, year and model of vehicle?
Is this vehicle already permitted by the City of Avalon? *please note: An amendment to the use of a commercial vehicle will have to be reviewed by the Vehicle Hearing Officer.Terms of Legal Possession of Vehicle (Check all that apply):
LI Own LI Lease LI Letter of Property Owner Authorization
BACKGROUND INFORMATION
Please state whether you are licensed by any governmental agency to engage in any business. If so, list each suchlicense held, the city which it is held, and the expiration date:
Has the applicant previously or cur-rently- per-ate--a-m-e8iGaI-Gannabis business n any other city, county or state undec-a sirnilac-4icense-or--permit-?-
if “Yes .‘Lp lease st-regions
#-es-” please attach an explanation for the revocation/suspension.
I4as any owner, business manager, member-c employee-ever-been-denied a medical cannabisfcannabis—bueness-perm#in the City. ofAvelon? Has-any owner or business manager ever been convicted-of-a-feleny E]—ES —--No Pea-Maage+en1 Employee
this application the first and last name of the Management Employee, the associated criminal case number(s). the statute(s) violated, the date(s) of conviction, the date(s) of imposition of probation and/or parole, and the name and address of the sentencing court.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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AMC CHAPTER 5-20 VERIFICATION OF MEDICAL CANNABIS PROHIBITED ACTIVITY The undersigned owners and managers, on behalf of the herein Medical Cannabis Business Permit applicant, declare under penalty of (Corporation/LLC/Partnership/Sole Owner) perjury that the Applicant has read and understands the attached provisions of Avalon Municipal Code (AMC) Title 5, Chapter 20, and shall, collectively and individually ensure that neither the Medical Cannabis Business nor its employees and Management Employees shall engage in the following prohibited activity set forth in AMC, which states in relevant part that:
(A) It shall be unlawful for any person or entity to operate, in or upon any property, a Medical Cannabis Delivery Service Business without first obtaining all required State licenses and a business license or permits issued by the City;
(B) It shall be unlawful for the owner of a building to allow the use of any portion of a building by a Medical Cannabis Delivery Service Business unless the tenant has a valid business license permit, or has applied for and not been denied, a business license permit;(C) It shall be unlawful for any of the following persons to have an ownership interest or a managerial responsibility in a Medical Cannabis Delivery Service Business, and no license or permit may be issued to or held by, and no Medical Cannabis Delivery Service Business shall be managed by: (a) Any person until all required fees have been paid; or (b) Any person who has been convicted within the previous ten (10) years of any violent or serious felony as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit, or embezzlement or who is currently on parole or probation for the sale or distribution of a controlled substance; or (c) Any person who is under twenty-one (21) years of age (D) It shall be unlawful for any Property owner, landlord, and lessee, Medical Cannabis Delivery Service Business employee or Manger or any other person having any responsibility over the operation of the Medical Cannabis Delivery Service Business to refuse to allow, impede, obstruct, or interfere with an inspection; (E) It shall be unlawful for any person to cause, permit or engage in the delivery of cannabis for medical or nonmedical purposes; (F) It shall be unlawful for any person to cause, permit, or engage in any activity related to medical cannabis except as provided in this Chapter and pursuant to all other applicable local and state law; (G) It shall be unlawful for any person to knowingly make any false, misleading or inaccurate statement orrepresentation in any form, record, filing or documentation required to be maintained, filed, or provided to the City of Avalon under this Chapter; (H) It shall be unlawful to transfer ownership or control of a medical cannabis delivery service business or transfer any medical cannabis delivery service permit issued by the City; (I) No Medical Cannabis Delivery Service Business, Management Employee or employee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on the Property or in the parking area of the Property;
(J) It shall be unlawful for cannabis to be consumed on the premises of any medical cannabis delivery service business. (K) The applicant understands that operators, employees and members of the Medical Cannabis Delivery Service Business may be subject to prosecution under Federal Laws.
Violation of any of the activities outlined above or within the AMC may result in the revocation of a Medical Cannabis Delivery Service Business Permit
Signature of Owner/Management Employee Printed Name and Title DateSignature of Owner/Management Employee Printed Name and Title Date Signature of Owner/Management Employee Printed Name and Title Date Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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PROPERTY OWNER! LANDLORD AUTHORIZATION FOR INSPECTION AND RIGHT TO OPERATE A MEDICAL CANNABIS DELIVERY SERVICE BUSINESS* I,
_____________________________________,
am the legal owner I landlord / lessor of real property located at (Name of Property Owner! Landlord) (Circle One) _______________________________________________________Avalon, California. I authorize the Medical (Proposed Business Site)
Medical Cannabis Business entitled
_________________________________________________
to operate a
Applicant (Corporation/LLC/Partnership/Sole Owner)
medical cannabis business at the property, as that term is defined in state law and the Avalon Municipal Code, for the specific use(s) of
(Land uses(s) set forth in the Medical Cannabis Business application — e.g. cultivation, manufacturing, etc.) set forth in the Medical Cannabis Delivery Service Business Permit Application submitted to the City of Avalon by____________________________________________ and allow the City of Avalon to enter the property for Applicant (Corporation/LLC/Partnership/Sole Owner)
inspection of the property. I further understand that as the legal owner / landlord / lessor of the property, I am responsible for any violation and nuisance activity which may occur at this property. I declare under penalty of perjury that the foregoing information is true and correct.
Executed this _________ day of ______________ 2018, at Avalon, California.* (Signature of legal owner/landlord/lessor) (Printed Name & Title) (Date) (Signature of legal owner/landlord/lessor) (Printed Name & Title) (Date) (Signature of legal owner/landlord/lessor) (Printed Name & Title) (Date) *This authorization form will not be valid without notarization. The authorization form automatically expires upon sale or transfer of the property to a new legal owner. If sale or transfer of the property occurs prior to obtaining a Medical Cannabis Delivery Service Business Permit, the applicant must resubmit this notarized form with approval of the new legal owner / landlord I lessor of the property.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed thedocument to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA ) COUNTY OF ___________ )
On
_____________________,
2018 before me,
___________________________________,
Notary Public, personally
appeared
_____________________________________________,
who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature:_______________________________________________ (seal) Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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65059.00000\30629236.2
INFORMATION AND RELEASE FORM
The undersigned, on behalf of
______________________________hereby
authorize the City of Avalon,
(Name of Corporation)
by and through its appropriate officers, agents and employees to verify and confirm the information contained in this application, and to conduct such other investigations as may be reasonably requiredby the City of Avalon, its officers, agents and employees for the purpose of determining the capability, fitness and capacity of the above named Corporation to obtain the Medical Cannabis Delivery Service Business Permit.
The applicant by signing this Information Release Form consents to service of any notice required or provided for by the laws, rules, regulations, or ordinances of the City of Avalon upon the person(s) at the address listed for applicant, will constitute sufficient and legal notice, unless said applicant listed an attorney of record and/or agent for service of process, with sufficient contact information.
The applicant consents and agrees that full compliance will be made with all applicable State laws and City ordinances governing the conduct of the particular type of activity for which the Medical Cannabis Delivery Service Business Permit is requested. The applicant by signing this Information Release Form understands that any incomplete or false information may constitute grounds for denial.
This form must signed by each applicant Management Member. (Signature of Management Member) (Printed Name & Title) (Date) (Signature of Management Member) (Printed Name & Title) (Date) (Signature of Management Member) (Printed Name & Title) (Date) This release may be executed in two or more counterparts, each of which shall be deemed anoriginal, and all of which taken together shall constitute one and the same instrument. Facsimilesignature(s) shall be deemed the equivalent of original signatures.
I declare under penalty of perjury that I have read the forgoing application and all information, statements, verifications, declarations and authorizations made, attached to and contained herein,and that I have personal knowledge of the information contained in the application, and that the information contained in the application is true and correct, and that the application was completedunder the supervision of the Management Members.
Executed this ________ day of , 20 , at Avalon, California.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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MEDICAL CANNABIS DELIVERY SERVICE BUSINESS FACILITY
ON-SITE MEMBER CONTACT STATEMENT
The undersigned, on behalf of
_______________________________________
Corporation, hereby
(Name of Corporation (Applicant))
designates
_____________________________________________
as the on-site Community Relation’s
(Name of On-Site Manager)
representative to whom the public or City can provide notice to if there are operating problems or issues relating to the Medical Cannabis Delivery Service Business Facility. The Medical Cannabis Delivery Service Business Facility shall make every good faith effort to encourage residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the Sherriff, Code or Planning Departments.
Signature of On-Site Manager (Printed Name & Title)
(Address) (Phone Number)
(Facsimile Number) (Email Address)
I declare under penalty of perjury that I have read the forgoing application and all information, statements, verifications, declarations and authorizations made, attached to and contained herein, and that I have personal knowledge of the information contained in the application, and that the information contained in the application is true and correct, and that the application was completed under the supervision of the Management Members.
Executed this
_______________
day of
______________________
20_ at Avalon, California.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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STATEMENT OF ACKNOWLEDGEMENT AND AUTHORIZATION
TO INDEMNIFY CITY
Indemnity:
The undersigned, on behalf of
________________________________
hereby authorizes and agrees to indemnify
(Name of Corporation (‘Applicant”))
the City of Avalon (the “City”), its agents, officers, and employees, to the maximum extent permitted by law, assuch may be amended from time to time, and to defend at its sole expense, any and all action against the City, its agents, officers, and employees because of any and all issues relating to the approval of said medicalmarijuana facility and related Ordinance(s) in the City. Said indemnity obligation shall be memorialized in an Indemnity Agreement for Medical Cannabis Delivery Service Business Permit between the Applicant and the City.
Reimbursements:
The undersigned, on behalf of
______________________________________
also agrees to reimburse the City for
(Name of Corporation (“Applicant”))
any court costs and attorney fees that the City may incur as payment for such action. The City may select anyattorney it deems appropriate, in the City’s exclusive discretion. Reimbursement of costs and fees, as set forth herein, shall be made payable to the “City of Avalon,” within thirty (30) days of written request for same. Failure of Applicant to make payment of reimbursement, as set forth herein, shall be grounds for revocation of permit to operate a medical marijuana facility in the City.
Cou nterpa its:
This indemnity may be executed in two or more counterparts, each of which shall be deemed an original, andall of which taken together shall constitute one and the same instrument. Facsimile signature(s) shall be deemed the equivalent of original signatures.
Declaration of Authorized Agents:
This form MUST be signed by each owner/shareholder or managing member of the applicant. I declare under penalty of perjury that I have read the forgoing application and all information, statements, verifications,declarations and authorizations made, attached to and contained herein, and that I have personal knowledgeof the information contained in the application, and that the information contained in the application is true andcorrect, and that we/I am duly authorized to enter into this Indemnity on behalf of Applicant. (Signature) (Printed Name & Title) (Date)
(Signature) (Printed Name & Title) (Date)
(Signature) (Printed Name & Title) (Date)
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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INDEMNIFICATION AGREEMENT FOR
MEDICAL CANNABIS DELIVERY SERVICE PERMIT
This Indemnification Agreement (‘Agreement”) is effective the _________day
of ___________________ (Month),
2018, and is made and entered into by and between the City of Avalon, a California municipal corporation(“CITY”) and _________________________,a
[INSERT TYPE OF COMPANY) (“APPLICANT”). The CITY
and APPLICANT are sometimes collectively referred to herein as “Parties”
RECITALS
WHEREAS, APPLICANT has requested that CITY process its application for a Medical Cannabis Business Delivery Permit (“MCBP”) submitted by APPLICANT which, when both permits are issued by the CITY, will allow APPLICANT to operate a Medical Cannabis Delivery Business as described in APPLICANT’Ssubmittal documents, identified as Medical Cannabis Delivery Service Business Application ______________________
(collectively “PERMIT”).
WHEREAS, APPLICANT desires to defend and indemnify CITY from liability or loss connected with the approval of the PERMIT and environmental clearances, if any, as provided in this Agreement.
NOW, THEREFORE, IT IS MUTUALLY AGREED BETWEEN THE CITY AND THE APPLICANT AS FOLLOWS:1. Parties
For the purposes of this Agreement, the term CITY shall include the City of Avalon, the City of Avalon Planning Commission, City Council, City Manager, City Attorney and/or any City of Avalon agencies, departments, commissions, agents, officers, and/or employees. For the purposes of this Agreement, the term APPLICANT shall include all parties applying for approval on the PERMIT, including but not limited to the owner or owners of the property or properties upon which the Medical Cannabis Delivery Business will be sitedand the APPLICANT(S) successor(s)-in-interest, if any.2. Indemnification and Defense by APPLICANT APPLICANT shall defend (with legal counsel chosen by CITY), indemnify, and hold harmless the CITY from and against any and all claims, damages, demands, suits and/or proceedings of any kind brought by anyone challenging the validity and/or legality of the PERMIT, the process followed. APPLICANT shall further defend, indemnify, and hold harmless the CITY from and against any and all claims, damages, demands, suits, and/or proceedings of any kind brought by anyone challenging the validity and/or legality of the APPLICANT’SCommercial Marijuana Cultivation Business that is the subject of the PERMIT.
APPLICANT shall defend (with legal counsel chosen by CITY), indemnify, and hold harmless the CITY from and against any and all liability whatsoever that relates in any way to the Medical Cannabis Delivery Business that is the subject of the PERMIT and/or arising out of the acts or omissions of APPLICANT in the operation ofthe Medical Cannabis Delivery Business that is the subject of the PERMIT.
APPLICANT shall pay all costs of defense, including but not limited to, attorneys’ fees and costs, City Staff time, and City Attorney time.The obligations of the APPLICANT under this Agreement shall apply regardless of whether the PERMIT is issued.
The CITY will promptly notify the APPLICANT of any such claim, action, or proceeding that is or may be subject to this Agreement and will cooperate fully in the defense. The CITY may, within its unlimited discretion, participate in the defense of any such claim, action, or proceeding if the CITY defends the claim, action orproceeding in good faith.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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3. Cooperation in the Event of Initiative or Legal Challenge (a) Legal Challenge - If any legal action or special proceeding related to the PERMIT iscommenced by anyone for any reason, the CITY and APPLICANT agree to cooperate with each otherin good faith to defend the CITY. The APPLICANT shall not settle any lawsuit on grounds which include, but are not limited to, non-monetary relief, without the consent of the CITY.(b) Initiative - Should a non-City initiative measure or measures be enacted which could affect thePERMIT:
(1) APPLICANT and CITY shall meet and confer in good faith to mutually determine the proper course of action; and
(2) In the event CITY and APPLICANT jointly determine to challenge such initiative measure, APPLICANT shall provide for any challenge to such initiative measure at its sole cost and expense.
(3) In the event that a court determination has the effect of preventing, delaying or modifying the development of the PERMIT as set forth above, CITY and APPLICANT shall meet and confer in good faith to determine if there are alternative means of achieving the mutual goalsand objectives of this Agreement, in light of such court action.
4. No Duty of CITY
APPLICANT acknowledge and agree that the Medical Cannabis Delivery Business that is the subject of the PERMIT is a private development and CITY has no interest in, responsibility for, or duty to anyone concerning the PERMIT and/or the business operated by the APPLICANT pursuant to the PERMIT.5. Release APPLICANT acknowledges and waives its rights under California Civil Code Section 1542 which provides as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” _________ (Applicant’s Initials)
6. Termination
The CITY may without cause terminate this Agreement by giving written notice as provided below.
APPLICANT may not terminate this Agreement for any reason.
7. Notices
Except as may be otherwise required by law, any notice to be given shall be written and shall be either personally delivered, sent by facsimile transmission or sent by first class mail, postage prepaid and addressed as follows:CITY: City of Avalon With a copy to: APPLICANT: Property Owner Attn: David M. Maistros
___________________________ ____________________________ P0 Box 707
__________________________ __________________________
Avalon, CA 90704-0707
____________________________ ___________________________ Fax: 310.510.2478
_______________________ _________________________
Email: [email protected]
_____________________________ ________________________
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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Notice personally delivered is effective when delivered. Notice sent by facsimile transmission is deemed to be received upon successful transmission. Notice sent by first class mail shall be deemed received on the fifth day after the date of mailing. Either party may change the above address by giving written notice pursuant to this paragraph.
8. Issuance of Building Permits
In the event the APPLICANT submits an application for an early building permit wherein the City issues the building permit for the purpose of construction or refurbishing a property for the purposes of operating a ____________________________
d
the building permit is issued prior to the City’s issuance of the MCBL, APPLICANT waives any vested rights under the building permit or right to operate the facility as a Medical Cannabis Delivery Business until such time as the MCBL is issued. APPLICANT waives any vested rights otherwise obtained consistent with State law.
9. Revocation
For any breach of the obligations under this Agreement, the CITY may revoke the PERMIT.
10. Entire Agreement
This Agreement represents the complete understanding between the Parties with respect to matters set forth herein.
11. Enforcement Action
In the event it becomes necessary for CITY to take any action against the APPLICANT to enforce or interpret the terms of this Agreement, CITY shall be entitled to its reasonable attorneys’ fees and costs, including all costs of investigation, and all pre-litigation costs.
12. Severability
If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be invalid or unenforceable, the remainder of the Agreement shall continue in full force and effect and shall in no way be impaired or invalidated.
13. Governing Law
The rights and obligations of the parties and the interpretation and performance of this Agreement shall be governed by the laws of the State of California and venue shall be in the County of San Bernardino.
14. No Third Party Beneficiaries Intended
Unless specifically set forth, the parties to this Agreement do not intend to provide any other party with any benefit or enforceable legal or equitable right or remedy.
15. Waiver
The failure of either party to insist on strict compliance with any provision of this Agreement shall not be considered a waiver of any right to do so, whether for that breach or any subsequent breach. The acceptance by either party of either performance or payment shall not be considered to be a waiver of any precedingbreach of the Agreement by the other party.
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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The undersigned APPLICANT expressly warrant his/her authority to enter into this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written.
APPROVED AS TO FORM:
By:___________________________Date:____________________________ City of Avalon -City Attorney
CITY AUTHORIZATION
By:
_________________________
City Manager
Date:
________________________
APPLICANT (If an individual)
By:
__________________________
Date:
______________________________
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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fif the APPLICANT is a corporation, use the following signature lines:) Note: Pursuant to Corporations Code Section 313 a contract with a corporation must be signed by one person from the following corporate officers; chairperson of the board, the president or any vice-president and must also be signed by a second person from the following corporate officers: the secretary, any assistant secretary, the chief financial officer, or any assistant treasurer unless the contract is accompanied by a certified copy of the Board of Directors resolution authorizing the execution of the contract by a single designated officer or person.
APPLICANT: Property owner
Corporate Name
By: _________________________ President or Vice President By:
_________________________
Secretary or Assistant Secretary
fif the APPLICANT is an LLC, use the following signature lines:) Note: “Corporations Code Section 17157 requires that contracts with an LLC be signed by at least two managers, unless the contract is accompanied by a certified copy of the articles of organization stating that the LLC is managed by only one manager.”
APPLICANT: Property owner
Corporate Name
By:
_________________________
Manger’s Name
By:
Manager’s Name
Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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OATH OF APPLICATION
The undersigned owners and managers of the applicant,
________________________________________
Applicant (Corporation/LLC/Partnership/Sole Owner)
declare under penalty of perjury that this application and all attachments are true, correct, and complete to the best of my knowledge. I have read, understand, and will ensure compliance with the provisions of the AvalonMunicipal Code Title 5, Chapter 20. I also acknowledge that it is my responsibility and the responsibility of my agents and employees to comply with the provisions of the Avalon Municipal Code and all laws, rules, andregulations which govern my Medical Cannabis Delivery Service Business Permit application and business operation.
(Signature of Owner/Management Employee) (Printed Name & Title) (Date)(Signature of Owner/Management Employee) (Printed Name & Title) (Date) (Signature of Owner/Management Employee) (Printed Name & Title) (Date) Note: this is NOT a Medical Cannabis Business Permit. Do not operate until a valid permit is issued.
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CITY OF AVALON CITY COUNCIL
MEETING DATE: August 6, 2024 AGENDA ITEM: I Z.
ORIGINATING DEP: Administration CITY MANAGER: 1WL
PREPARED BY: David Maistros, City Manager
SUBJECT: Extension of Moratorium on the Issuance of Transient Rental Licenses for Transient Rental Use to New Applicants
RECOMMENDED ACTION(S): Approve by four-fifths City Council vote an ordinance extending the moratorium on the issuance of Transient Rental Licenses for transient rental use to new applicants to July 30, 2025.
REPORT SUMMARY: On August 1, 2023, the City Council voted unanimously to establish, by urgency ordinance, a moratorium on the issuance of any new Transient Rental Licenses not filed prior to August 1, 2023 for a 45 day period (Urgency Ordinance No. U-1212-23). The ordinance was adopted in response to numerous concerns from property owners and residents regarding visitors utilizing property for which a Conditional Use Permit or Transient Rental License has been issued allowing for transient use. Additionally, evidence locally and nationally supports the concerns that the proliferation of short term rentals in residentialneighborhoods may contribute to increases in housing costs, reduction of housing stock, overall street congestion, excessive noise, traffic hazards, inability to access parking, additional strain on City services and certain property crimes within the City. Further, community members have raised their experiences with these issues in public comment at various meetings of the City Council and Planning Commission and other stakeholder meetings, as described further in this report. Increases in housing cost and reduction ofhousing stock are particularly important issues to the City of Avalon community given that it is not possible to travel to Catalina Island by vehicular means from other areas in Los Angeles County and commuters mostly travel to the Island by ferry. That has historically acted as a deterrent to individuals in Los Angeles County from accepting work in the City due to the increased cost and time necessary to travel to the City from the mainland. Consequently, increases in housing costs and limits on the housing supply then reduce available supply oflabor on the Island. V On September 15, 2023, the City Council adopted by a vote of 4 ayes, 1 absent (MayorMarshall) Urgency Ordinance No. U-1213-23 extending the moratorium for an additional 10 months and fifteen days. This additional time was needed to further determine the level of impact on the City of Avalon and to propose and establish common sense regulations to protect the health, safety and welfare of the community.
In response to public health and safety concerns, as well as to study whether there is a correlation between a real or perceived proliferation of Conditional Use Permits and Transient 65059.00002\42530304. I
Rental Licenses and available housing stock, including affordable housing for full-time Avalon residents and employees of Avalon businesses, City Council requested Staff to perform an analysis of the current Conditional Use Permits and Transient Rental Licenses.Since the establishment of the moratorium, City Staff has conducted the following activities specifically related to the moratorium:
- Held a stakeholder meeting on Tuesday, September 22 at 6 p.m. approximately 4 community members attended in person, with approximately 20 attending virtually. Meeting discussion included quality of life issues, specifically noise, trash, and other community impacts associated with transient rentals.
- Held a stakeholder meeting on Wednesday, September 30 at 6 p.m. approximately 20 community members attended in person, with approximately 40 attending virtually. Meeting discussion included financial benefits and impacts, sustainability and housing impacts associated with transient rentals.
- Staff compiled an extensive list of comments and regulatory options from community members both in attendance at the meetings as well as those who provided written comments directly to Staff. Attached to this memo is a compilation of comments received. - From October 1, 2023 to December 1, 2023, the City conducted a survey to determine the overall impact of Conditional Use Permits and Transient Rental Licenses amongst Island visitors, residents and property owners. The survey also provided insight into participant’s thoughts regarding potential enhanced regulations and/or additional enforcement. - Survey results were presented to the Planning Commission on February 21, 2024 and are attached to this report for reference.
- In Spring 2024, the City contracted with iWorks to assist in the development of a comprehensive database to assist in the management and tracking of the City’s Conditional Use Permits and Transient Rental Licenses. As City staff complete the analysis of the current Conditional Use Permit and Transient Rental License holders, the database is updated to include these individuals/addresses.
A previous analysis conducted in March 2023 of the City’s business license database as well as transient rental license records indicated they were approximately 378 Conditional Use Permit and 33 Transient Rental License holders in Avalon — total of 411 short term rental units.
This number is not consistent with the number of known and active short term rental units reporting to the City. On March 1, 2024, City staff began the task of culling through more than 40 years of historical records detailing the issuance, transfer and revocation of Conditional Use Permits and Transient Rental Licenses in order to make a final determination of the number of Conditional Use Permits and Transient Rental Licenses issued and active within the City of Avalon. This analysis has been painstakingly slow but is necessary in order to establish a comprehensive list of every property located in the City that has the ability to operate as ashort term rental unit. To date, staff has completed approximately 80 percent of this review process.
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The City Council wishes to consider further regulation, consistent with its adopted LCP and General Plan, on how to properly and fairly address any proliferation of transient rentals within the City while recognizing the obligation to balance the needs of long term housing.The foundation of any decision to regulate short term rentals is the number and location of every existing unit. Without this clear determination, Council cannot fairly and adequately identify the common sense regulations required to not only protect existing housing stock but also protect the interests of the business community. As more analysis is needed, anextension of the moratorium will allow issues associated with determining the overall number of Conditional Use Permits and Transient Rental Licenses, and their impact on public health, safety and welfare, as well as their impact upon affordable long—term housing and city revenues to be further vetted.
Staff recommends that the City Council approve by four-fifths City Council vote an ordinance extending the moratorium on the issuance of Transient Rental Licenses for transient rental use to new applicants to July 30, 2025.
FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The moratorium will not be extended and the City’s existing rules for the granting of transient occupancy licenses go back into force.
FOLLOW UP ACTION: Implement Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda in compliance with the Brown Act.
ATTACHMENTS:
1. Urgency Ordinance
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URGENCY ORDINANCE NO. —
AN URGENCY ORDINANCE OF THE CITY OF AVALON
EXTENDING THE MORATORIUM ON THE ISSUANCE OF
TRANSIENT RENTAL LICENSES FOR TRANSIENTRENTAL USE TO NEW APPLICANTS WHEREAS, the City of Avalon (“City”) permits private property owners to rent their homes to visitors on a short-term basis under Avalon Municipal Code (“Code”) Section 3-1.3 10 upon Planning Commission approval of a Transient Rental License for transient rental use; and
WHEREAS, current holders of Conditional Use Permits for transient rental and Transient Rental License holders will continue to be allowed to rent out their units during this moratorium; and
WHEREAS, the City Council wishes to further study whether there is diminishing housing stock, including affordable housing for full-time Avalon residents and employees of Avalon businesses, as a result of the number of private property owners that havereceived approval via a Conditional Use Permit or Transient Rental License for transient rental use; and
WHEREAS, the City Council wishes to study to what the degree the City has been saturated by Conditional Use Permits and Transient Rental Licenses issued for transient rental use; and
WHEREAS, the City has received numerous complaints from surrounding property owners regarding visitors utilizing property for which a Conditional Use Permit or Transient Rental License for transient use has been issued; and WHEREAS, complaints received by the City suggest that the issuance of Conditional Use Permits or Transient Rental Licenses for transient use may be responsible for street congestion, excessive noise resulting in loss ofsleep to residents, traffic hazards, inability to access parking, and certain property crimes within the City; and WHEREAS, the City Council wishes to consider further regulation, consistent with its adopted LCP and General Plan, on how to properly and fairly address anyproliferation of transient rentals within the City while recognizing the significant need for the public to have recreational access to the coast; and WHEREAS, in order to adequately study the effects of additional Transient Rental Licenses issued for transient rental use, including the impacts on available housing stockfor Avalon residents and employees of Avalon businesses, and whether the existing requirements and standards for transient rental use sufficiently protect surrounding property owners, it is necessary for the City Council to extend the moratorium on the issuance of Transient Rental Licenses for transient rental use; and WHEREAS, if additional Transient Rental Licenses are issued, available housing stock for residents may be eroded and impacts of transient uses will continue to increase; and
WHEREAS, the moratorium has halted the issuance of any new Transient Rental Licenses to those who apply after August 1, 2023; and
WHEREAS, at the time of the moratorium, there were three (3) pending applications for TRLs, each applicant has undertaken significant steps to bring their application to the City in advance of this ordinance with the expectation that the City’s laws would remain in effect, so for purposes of fairness, the City Council intends that the moratorium not apply to those with pending applications for TRLs; and WHEREAS, California Government Code Section 36937(b) authorized the City Council to adopt by a four-fifths vote an urgency ordinance, effective immediately upon passage, if the ordinance relates to the “immediate preservation of the public peace, health or safety” and such ordinance contains a declaration of the facts constituting the urgency;and WHEREAS, pursuant to Gov. Code 65858(d), on July 26, 2024, at least ten days before the extension of the moratorium, the City Council issued a memorandum/reportwhich describes the measures that the City has taken to study, alleviate, and address the issues that lead to the moratorium on the issuance of Transient Rental Licenses; and WHEREAS, after providing notice pursuant to California Government Code Section 65090 and a public hearing, the City Council may, by a four-fifths vote, extend the Moratorium for an additional period not to exceed one year. An extension of the Moratorium is intended to prohibit any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City Council, planning commissionor the planning department is considering or studying or intends to study within a reasonable time.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON
DOES ORDAIN AS FOLLOWS:
Section 1. Recitals. The recitals set forth above are true and correct and are hereby adopted as the urgency findings of the City Council in connection with the adoption ofthis urgency ordinance. In addition to the recitals stated above, the City Council hereby finds and determines that continued issuance ofTransient Rental Licenses for transient rental use, without additional regulations, constitutes an immediate threat to the preservation of public peace, health, or safety until the impacts of Transient Rental Licenses on traffic, noise, safety to residents, housing availability, and housingaffordability are properly studied. The adoption of this ordinance is necessary for the immediate protection of the public peace, health and safety.
Section 2. Purpose. The purpose of this urgency ordinance is to extend the moratorium on the issuance of any new Transient Rental Licenses fortransient rental use for the statutorily authorized period, until such time as the Avalon City Council can study the issue, and develop, clarify or amend Code requirements and standards as it relates to transient rental use and its impact on City residents and property owners.
Section 3. Facts Constituting Urgency. Such an extension of the moratorium is immediately necessary for the preservation of the peace, health and safety of the residents of the City because:
(a) There is an immediate need to protect existing housing stock within the City by ensuring transient rental use does not result in a lack of availability of housing in the City for those wishing to live in the City long-term or for those who are employed in the City, noting that those who commute to Catalina Island from the mainland must do so by boat; and
(b) There is an immediate need to preserve availability of housing to ensure that, from a supply and demand perspective, additional transient rentals do not drive up the price of housing such that housing is unaffordable to its workforce, noting the need for the City to have housing which its workforce can afford and noting recent increases in the cost of housing within the City; and (c) Transient Rental Licenses for transient rental use poses further public peace, health, and safety risk in that an over abundance of Transient Rental Licenses for transient rental use may be responsible for street congestion, excessive noise resulting in loss of sleep to residents, traffic hazards, inability to access parking, and certain property crimes within the City.
Section 4. Moratorium. The Planning Commission shall not issue any Transient Rental Licenses to any person who submitted a valid application and paid the application fee for a Transient Rental License following August 1,2023.
However, those applicants who applied for a Transient Rental License before the effective date ofthis ordinance shall still be eligible to have such license issued by the Planning Commission during the moratorium.
Section 5. Hardship. The Planning Commission may also consider, on a case-by-case basis and within its sole discretion, any application for Transient Rental Licenses for transient rental use otherwise banned by this moratorium where the applicant can demonstrate that the inability to receive a Transient Rental License for transient rental use during the time this moratorium is in place would cause the applicant undue hardship. For purposes of this section, undue hardship means an inability to afford basic necessities—like shelter, food, or healthcare—for themselves or their family.
Section 6. Urgency. The City Council hereby extends this urgency ordinance by not less than a four-fifths vote, and in light ofthe findings set forth in the abovesections, under the authority granted to it by sections 36937(b) and 65858 of the California Government Code. Under this authority, the City may extend an interim urgency ordinance prohibiting land uses which may be in conflict with a zoning proposal that the City Council, planning commission, or the planning department is considering or studying or intends to study within a reasonable time. The City Council hereby directs staff and the City Attorney to consider and further study the Code and propose possible regulations, standards and amendments to the future issuance of Transient Rental Licenses for transient rental use.
Section 7. Exemption from the California Environmental Quality Act. The City Council finds that this urgency ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15358 (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because temporarily halting issuance of Transient Rental Licenses has no potential to result in a physical change to the environment. Further, the City Council finds that this urgency ordinance is exempt under CEQA pursuant to Section 15061 (b)(3) (there exists no possibility that the activity will have a significant adverse effect on the environment) of the CEQA Guidelines because this urgency ordinance will not cause a change in any of the physical conditions within the area affected by the urgency ordinance.
Section 8. Severability. If any provision of this urgency ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the urgency ordinance which can be given effect without the invalid provision or application, and to thisend the provisions ofthis ordinance are severable. The City Council hereby declares that it would have adopted this urgency ordinance irrespective of the invalidity of any particular portion thereof.
Section 9. Effective Date. As provided for in Government Code Section 65858, this urgency ordinance extension shall become effective immediately upon adoption if adopted by at least a four-fifths vote of the City Council and shall remain in effect until July 30, 2025.
Section 10. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings and this Ordinance are based are located at the City Clerk’s Office at City Hall located at 410 Avalon Canyon Rd., Avalon, CA 90704. The custodian of these records is the City Clerk.
The City Clerk of the City of Avalon shall certify the passage and adoption ofthis Urgency Ordinance and shall cause the same, or a summary thereof, to be published and/or postedin the manner required by law.
PASSED, APPROVED AND ADOPTED at a regular meeting ofthe City Council of the City of Avalon on this day of
______________,
2024, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Ann H. Marshall. Mayor
ATTEST:Gabrielle Morones, City Clerk
APPROVED AS TO FORM:
Scott Campbell
Best Best & Krieger, LLP
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF AVALON )
I, Denise Radde, hereby certify that the foregoing is a true copy of Urgency Ordinance No. , introduced at a regular meeting held on the day of , 2024and duly adopted by the City Council ofthe City of Avalon, California at a regular meeting thereof held the day of , 2024.
Witness my hand and official seal of the City of Avalon this ____ day of _________ 2024.
Gabrielle Morones, City Clerk