Agenda — Avalon City Council, December 16, 2025

AVALON CITY COUNCIL MEETING WHICH WILL ALSO INCLUDE

A MEETING OF THE CITY COUNCIL ACTING AS

THE SUCCESSOR AGENCY TQ THE ACIA, AND

THE HOUSING AUTHORITY
TUESDAY, DECEMBER 16, 2025- 5:00 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 CfIR 35. 102-35.104 ADA Title 11 ). Al l public records relating to an agenda item on this agenda are available for the public inspection 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 YouTube: https://www.youtube.com/CityofAvalonCA

CALL TO ORDER / PLEDGE OF ALLEGIANCE / INVOCATION / ROLL CALL

ANNOUNCEMENTS / WRITTEN COMMUNICATIONS

DEPARTMENT HEAD REPORTS

CITY MANAGER REPORT / CITY ATTORNEY REPORT

COUNCILMEMBER REPORTS / REQUESTS / MAYOR REPORT

PRESENTATION
Southern California Edison Compliance Advisor, Traci Degnan, will provide the state mandated Annual Propane Gas Safety Public Awareness presentation. (10 minutes)

ORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken on non-agenda items at this meeting . Speakers should limit comments to two (2) minutes each.

CONSENT CALENDAR

1. City Council Minutes
Although the live recording is the official record of public meetings, minutes are prepared for the City Council's approval.

Recommended Action
Approve minutes from November 18, 2025 regular City Council Meeting.

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY AGENDA
DECEMBER 16, 2025
PAGE 2

2. Warrants
Expenditures Submitted for Approval :
• Warrants totaling $1 ,806,581.47.
• Two payrolls totaling $589,459.71 .
• One electronic fund transfer for Intergovernmental Transfer to Department of Health Care Services of $1,108,970.00.
• Six electronic fund transfers totaling $230,867.64.

Recommended Action
Approve the disbursements for November 10, 2025 through December 5, 2025 totaling $3,735,878.82.

3. Resolution Approving and Adopting an Organizational Conflict of Interest Policy Covering Design-Build Projects
The City is engaged in a competitive request for qualifications from qualified design-build teams for the Cabrillo Mole Revitalization Project - Phase II. In development of the procurement documents for this project, City Staff became aware that there was no approved or adopted conflict of interest policy for progressive design-build projects.

Recommended Action
Adopt a resolution approving and adopting an Organizational Conflict of Interest Policy Covering Design-Build Projects.

4. State of California General Fund Allocation for the Green Pleasure Pier Deck Replacement Project
Senator Lena Gonzales's request for a $1 million allocation from the state general fund to support the City's Green Pleasure Pier Deck Replacement Project was approved . The California Natural Resources Agency has been delegated the responsibility for administration of the grant project. The proposed resolution resolves the approval and acceptance of these grant funds , certifies the City's understanding and compliance with the grant agreement.

Recommended Action
Adopt the resolution approving and accepting State of California General Fund Grant Funds for the Green Pleasure Pier Deck Replacement Project.

5. Request for Bids for Green Pleasure Pier Deck Replacement Project Thanks to an allocation requested by Senator Lena Gonzales, the City will receive a $1 million grant to support the City of Avalon's Green Pleasure Pier Deck Replacement Project. Replacement of the Green Pleasure Pier Deck is a timing sensitive project. The City understands the importance of coordinating construction during the off season so as not to adversely affect commercial and recreational operations of the Pier.

Recommended Action
Authorize the City Manager or his designee to develop and solicit a request for bids from qualified contractors for the Green Pleasure Pier Deck Replacement Project.

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY AGENDA
DECEMBER 16, 2025
PAGE 3

6. Development Impact Fees Annual Report for the Fiscal Year Ended June 30, 2025 Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year. The fiscal year ended June 30, 2025.

Recommended Action
Receive and file the Fiscal Year 2024-25 Development Impact Fees Annual Report. *** The following item on the Consent Calendar is the City Council acting as the Housing Authority AND the Successor Agency to the ACIA. ***

7. Housing Successor Agency Annual Report for Fiscal Year 2024-25 Health and Safety Code Section 34176.1 requires successor housing entities to prepare an annual report documenting compliance with expenditure proportionality and other requirements pertaining to the housing asset fund. The report is due to the California Department of Housing and Community Development by December 31 , 2025.

Recommended Action
Adopt a resolution approving a Housing Authority Successor Agency Annual Report for Fiscal Year 2024-25.
*** The following item on the Consent Calendar is the City Council acting as the Successor Agency to the ACIA. ***

8. Recognized Obligation Payment Schedule (ROPS) 26-27 and Successor Agency Administrative Budget for Fiscal Year 2026-27
As a result of the dissolution of redevelopment, the Successor Agency was created to administer the enforceable obligations and unwind the affairs of the former Avalon Community Improvement Agency. As part of that process, the Successor Agency must annually adopt the Recognized Obligation Payment Schedule, as required by Dissolution Law.

Recommended Action
Adopt "A Resolution of the Successor Agency to the Avalon Community Improvement Agency Approving a Recognized Obligation Payment Schedule 26-27 and Successor Agency Administrative Budget for Fiscal Year 2026-27."

PUBLIC HEARING

9. Fiscal Year 2025-2026 Miscellaneous Fee Schedule Update City Staff performed an analysis of the administrative costs associated with the regulation of the City's short-term rentals, permits, and licenses as discussed at the September 2, 2025 City Council Meeting. Based on this analysis, City Staff recommends establishing a new administrative fee to be assessed on all licensed short-term rental businesses to

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY AGENDA
DECEMBER 16, 2025
PAGE4
directly recoup for the costs associated with the monitoring of short-term rentals and the enforcement of related transient rental ordinance requirements.

Recommended Action

1. Hear a presentation regarding the Miscellaneous Fee Schedule. 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing. 4. If consensus, adopt the updated fee schedule as proposed.

10. Revocation of Business Licenses - OMEO Suites Catalina Island At the November 18, 2025 City Council Meeting , the City asserted that the licensee has violated Section 3-3.407 regarding the reporting and remitting of transient occupancy taxes. In response, the City Council authorized the Finance Director to initiate the revocation process.

Recommended Action

1. Hear a presentation on the reasons for the proposed revocations of the business licenses for the OMEO Suites Catalina Island (Business License No. 011090). 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing. 4. If consensus, revoke the business license for the OMEO Suites Catalina Island (Business License No. 011090).
11 . Revocation of Business Licenses - OMEO Hotel Catalina At the November 18, 2025 City Council Meeting, the City asserted that the licensee has violated Section 3-3.407 regarding the reporting and remitting of transient occupancy taxes. In response, the City Council authorized the Finance Director to initiate the revocation process.

Recommended Action

1. Hear a presentation on the reasons for the proposed revocations of the business licenses for the OMEO Hotel Catalina (Business License No. 011107). 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing. 4. If consensus, revoke the business license for the OMEO Hotel Catalina (Business License No. 011107).

GENERAL BUSINESS
*** The following item of General Business is the City Council acting as the Housing Authority AND the Successor Agency to the ACIA. ***

12. Multi-year Renewal Agreement with RSG, Inc. through FY 2028-29 for Successor Agency and Housing Authority Consulting Services
RSG has served as the Avalon Successor Agency's and Avalon Housing Authority's consultant since the dissolution process began in 2012. Due to their history with the City and understanding of the nuances of Avalon , City Staff believe a competitive market does not exist and the City will not gain a competitive advantage by using a formal contract bid or other bid procedure for this contract.

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY AGENDA
DECEMBER 16, 2025
PAGE 5
Recommended Action

1. Make an affirmative finding to dispense with a competitive procurement process due to economic efficiency as outlined in Avalon Municipal Code 3-4.111 (c). 2. Authorize the City Manager/Agency Director to enter into a three year contract with RSG, Inc. , to provide Successor Agency consulting services through FY 2028-29 in an amount not-to-exceed $25,000 per year ($75,000 over length of contract); and 3. Authorize the City Manager/Agency Director to enter into a three year contract with RSG, Inc., to provide Housing Authority consulting services through FY 2028-29 in an amount not-to-exceed $10,000 per year ($30,000 over length of contract).

13. Carnival Cruise Line Preferential Access Agreement
During the July 15, 2025 City Council Meeting , the City reviewed proposals for like terms from Disney, Carnival and Royal Caribbean in order to establish parameters for the framework for negotiating a more definitive Port Agreement with cruise ship partners. The Port Agreements are intended to memorialize expectations and commitment between the City and the cruise ship partner, including, but not limited to, establishing limitations on capacity of visiting cruise ship and providing a "preferential" day of call for a premium wharfage.

Recommended Action
Authorize the City Manager to execute a Preferential Access Agreement with CCL Cruise Line (Carnival).

14. Cruise Ship Annual Report for the fiscal year ended June 30, 2025 On September 3, 2024, the City Council adopted Resolution No. 24-34 re-establishing the guidelines for the approval of cruise ships visiting Avalon through December 30, 2027.

The resolution requires the City provide an annual report on cruise ship vessels that includes the number of vessels that visit Avalon, number of passengers, amount of wharfage collected , an safety or security incidents that may have occurred while the ship was in port, as well as projections and scheduling information for the next year.

Recommended Action
Receive and file the Cruise Ship Annual Report for the fiscal year ended June 30, 2025.

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to §54956.9 (c).

One Case.

ADJOURN

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY AGENDA
DECEMBER 16, 2025
PAGE 6

NOTICE OF POSTING
I, Devin Elise Hart, declare that the City Council Agenda for Tuesday, December 16, 2025 was posted on Friday, December 12, 2025 on the City's website, www.cityofavalon.gov/agendacenter, and at City Hall, 410 Avalon Canyon Road.

Devin Elise Hart, Senior Management Analyst

CITY OF AVALON CITY COUNCIL
MEETING DATE: AGENDA ITEM: 1
ORIGINATING DEP:

December 16, 2025
City Clerk CITY MANAGER: u-+U~ ...

PREPARED BY:

SUBJECT:

Gabrielle Morones, City Clerk
City Council Minutes
RECOMMENDED ACTION(S): Approve minutes from the November 18, 2025 regular City Council Meeting.

REPORT SUMMARY: Although the live recording is the official record of public meetings, 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 on the posted agenda pursuant to the Brown Act.

ATTACHMENTS:

1. November 18, 2025 regular City Council Meeting Minutes

AVALON CITY COUNCIL MEETING
TUESDAY, NOVEMBER 18, 2025 - 5:00 PM
410 AVALON CANYON ROAD

MINUTES
CALL TO ORDER - 5:00 p.m.

ROLL CALL-Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce, Mary Schickling and Yesenia De La Rosa.

Also present: City Manager David Maistros, City Attorney Scott Campbell and City Clerk Gabrielle Morones.

WRITTEN COMMUNICATIONS - City staff received 42 written communications regarding the Catalina Island Conservancy's Plans for Mule Deer removal. Copies have been distributed to City Council and are on file in the City Clerk's Office.

PRESENTATIONS

1. Outreach Analyst, Brenda Caloca, of the California Department of Insurance provided an overview of the California Department of Insurance's wildfire mitigation efforts and recent policy updates. The presentation highlighted how these initiatives enhance insurability and strengthen community resilience in high-fire risk areas.

2. Tim Kielpinski of Catalina Island Health provided an update regarding Catalina Island Health.

CONSENT CALENDAR-Councilmember Lavelle pulled Item #1 -City Council Minutes for a separate vote as she was not in attendance at the November 4, 2025 meeting.

Motion to approve Items #2-#5 made by Lisa Lavelle, seconded by Yesenia De La Rosa. (All Ayes).

2. Warrants
Approved warrants totaling $446,940.18, one payroll totaling $271 ,075.25, four electronic fund transfers totaling $179,759.51 for a total disbursement of $897,774.94 for October 27, 2025 through November 7, 2025.

3. 2025 Volunteer Fire Assistance Grant
Adopted Resolution No. 25-38 of the City Council of the City of Avalon , California, Approving the Department of Forestry and Fire Protection Agreement #7FG25021 .

CITY COUNCIL MINUTES
NOVEMBER 18, 2025
PAGE 2

4. 5.

Revocation of Business Licenses

1. Authorized the Director of Finance to initiate the revocation process for licensees that have violated provisions of the Avalon Municipal Code as outlined in Section 3-1 .116. 2. Directed City Staff to schedule a public hearing for the licensee to appear before the City Council.

Resolution Approving New Classification and Description - Senior Harbor Operations Assistant
Adopted Resolution No. 25-39 of the City Council of the City of Avalon Adopting the Senior Harbor Operations Assistant Position.

PULLED ITEM

1. City Council Minutes
Approved minutes from the November 4, 2025 regular City Council Meeting.

Motion to approve made by Michael Ponce, seconded by Yesenia De La Rosa. (4 Ayes-Marshall , De La Rosa, Ponce and Schickling ; 1 Abstention-Lavelle).

GENERAL BUSINESS

6. Contract Award with Geo-Logic Associates for Final Design, Engineering, and Construction Bid Documents for the Pebbly Beach Landfill Site Life Optimization Project
Authorized the City Manager to execute a Professional Services Agreement with Geo-Logic Associates (GLA) under a sole source procurement pursuant to Avalon Municipal Code §3-4.111 (c) for an amount not-to-exceed $278,000, for the preparation of the final design, engineering plans, technical specifications, and bid documents for the Pebbly Beach Landfill Site Life Optimization Project.

Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)

7. Approval of Professional Services Agreement with West Coast Arborist for Tree Trimming

1. Per the City's procurement policy, authorized the City Manager or designee, to execute an agreement with West Coast Arborist, Inc. to provide professional services for tree trimming within the City of Avalon . 2. Authorized the City Manager or designee to execute a budget adjustment transferring $25,000 from the Storm Damage Account Fund (10250-5701) to the Tree Trimming Services Account Fund (10250-5125), with the remaining $5,000 to be funded from the Cemetery Maintenance of Premises Account Fund (13350-5700), for a total contract amount not-to-exceed $130,000.

Motion to approve made by Mary Schickling, seconded by Michael Ponce. (All Ayes)

CITY COUNCIL MINUTES
NOVEMBER 18, 2025
PAGE 2

8. Resolution Adopting Memorandum of Understanding Between the City of Avalon and the Avalon Harbor Employees, SEIU Local 721 for the Contract Period July 1, 2025 through June 30, 2028
Adopted Resolution No. 25-40 of the City Council of the City of Avalon Approving the Memorandum of Understanding Between the City of Avalon and Service Employees International Union 721- Avalon Harbor Unit Effective July 1, 2025 through June 30, 2028.

Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)

9. Resolution Adopting Memorandum of Understanding Between the City of Avalon and the Avalon Municipal Employees, SEIU Local 721 for the Contract Period July 1, 2025 through June 30, 2028
Adopted Resolution No. 25-41 of the City Council of the City of Avalon Approving the Memorandum of Understanding Between the City of Avalon and the Service Employees International Union 721 - Avalon Municipal Employee Unit Effective July 1, 2025 through June 30, 2028.

Motion to approve made by Lisa Lavelle, seconded by Mary Schickling . (All Ayes) Mayor Marshall adjourned the meeting at 6:47 p.m.

I, Gabrielle Morones, City Clerk, do hereby certify that the DVD videotape of the regular City Council Meeting on November 18, 2025, is the official record of the Council Meeting and is on file and maintained in City Hall.

Gabrielle Morones, City Clerk

CITY OF AVAL ON CITY CO UNCIL
MEETING DATE: November 18, 202 5 AGENDA ITEM: 7-
ORIGINATING DEP: Finance CITY MANAGER: D#R
PREPARED BY: Matthew Baker, Fi nance Directo r
SUBJECT: Warrants
RECOMMENDED ACTION($): Approve the disbursemen ts for November 10, 2025 through December 5, 2025 totaling $3,735,878.82.

REPORT SUMMARY: These disburseme December 10th are comprised of warrants from the US Bank General Acco 1,806,581.47, two payrolls totaling $589,459.71 , electronic funds transfer for
nts through
unt totaling $
the lntergo vernmental Transfer (IGT) to the
Department of Health Care Services for $1 , 108,970.00 and other electronic fund transfers totaling $230,867.64.

ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 41087-41094 64,649.88 11/12/25
GF US BANK WARRANTS CK# 41095-41149 843,457.94 11 /21 /25 GF US BANK WARRANTS CK# 41150-41152 10,599.41 11/24/25
GF US BANK WARRANTS CK# 41153-41154 4,420.66 11/26/25
GF US BANK WARRANTS CK# 41155-41220 883,453.58 12/05/25 PAYROLL 272,638.51 11/14/25
PAYROLL 316,821 .20 11 /28/25
EFT - DHCS IGT HOS PIT AL LOAN 1,108,970.00 11/20/25
EFT - CALPERS MEDICAL 103,297.58 12/04/25
EFT - CALPERS RETIREMENT 46,520.59 11/17/25
EFT - CALPERS RETIREMENT 46,477.67 11/25/25
EFT - STRONGWELL FUEL TANK ROOFING DEPO SIT 23,386.78 11 /21 /25 EFT - HARBOR/REC CREDIT CARD AND BANK SE RVICE FEES 11 ,185.02 12/05/25 TOTAL DISBURSEMENTS $3,735,878.82
GOAL ALIGNMENT: Ongoing meeting of Cit
FISCAL IMPACTS: There are sufficient fund
y obligations
s available, and the expenditures are included in
the FY25-26 Budget.

CONSEQUENCES OF NOT FOLLOWING R ECOMMEND ED ACTION : N/A FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CON TACT: Purs uant to the Brown Act.

ATTACHMENTS: Audit Certificate, Warrant Lists

CITY OF AVALON
NOVEMBER 10TH - DECEMBER 5TH, 2025 DISBURSEMENTS
December 16, 2025

ITEM DESCRIPTION
GF US BANK WARRANTS CK# 41087-41094
GF US BANK WARRANTS CK# 41095-41149
GF US BANK WARRANTS CK# 41150-41152
GF US BANK WARRANTS CK# 41153-41154
GF US BANK WARRANTS CK# 41155-41220

PAYROLL

EFT - DHCS IGT HOSPITAL LOAN

EFT - CALPERS MEDICAL

EFT - CALPERS RETIREMENT

EFT - (ALPERS RETIREMENT

EFT - STRONGWELL FUEL TANK ROOFING DEPOSIT

EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES

APPROVED AND AUDITED THIS
16TH DAY OF DECEMBER 2025

TOTAL DISBURSEMENTS

AMOUNT DATE
64,649.88 11/12/25
843,457.94 11/21/25
10,599.41 11/24/25
4,420.66 11/26/25
883,453.58 12/05/25
272,638.51 11/14/25
316,821.20 11/28/25
1,108,970.00 11/20/25
103,297.58 12/04/25
46,520.59 11/17 /25
46,477.67 11/25/25
23,386.78 11/21/25
11,185.02 12/05/25
$ 3,735,878.82

CERTIFICATE
IN ACCORDANCE W ITH SECTION 32702

OF THE GOVERNMENT CODE, I CERTI FY

THAT THE ABOVE DEMANDS ARE ACCURA

AND THAT FUNDS ARE AVAILABLE FOR
PAYMENT.

I CERTIFY UNDER PENALTY OF PERJURY

THAT THE FOREGOING IS TRUE AND
CORRECT.

TE
AUDIT COMMITTEE -MICHAEL PONCE EXECUTED THIS 16TH DAY OF DECEMBER 2025

AUDIT COMMITTEE - MARY SCHICKLING FINANCE DIRECTOR - M ATTHEW BAKER

CHECK DATE

NUMBER ISSUED AMOUNT
41087 11/12/2025 973.00
41088 11/12/2025 39.38
41089 11/12/2025 226.55
41090 11/12/2025 55,509.05
41091 11/12/2025 2,257.36
41092 11/12/2025 272.16
41093 11/12/2025 640.42
41094 11/12/2025 4,731.96
$ 64,649.88

CITY OF AVALON

WARRANT DISBURSEMENTS
December 16, 2025
NAME

CATALINA BEVERAGE CO

CATALINA BROADBAND SOLUTIONS

CICCS/EAP
CIRCU IT TRANSIT, INC.

KONA TEES SCREENPRINTING & EMBROID
L.N. CURTIS & SONS

MATTHEWS INTERNATIONAL CORPORATION
MOTOROLA SOLUTIONS, INC.

Page 1 of 1 ends

DESCRIPTION
SUPPLIES: ALL DEPARTMENTS
SERVICE: FIRE
SERVICE: ADMINISTRATION
CONTRACT SERVICES: 10/2025
UNIFORMS: ALL DEPARTMENTS
SUPPLIES: FIRE
SUPPLIES: CEMETERY
SERVICE: FIRE AUDIO

CITY OF AVALON

WARRANT DISBURSEMENTS
December 16, 2025

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
41095 11/21/ 2025 5,501.36 AAA OIL, INC FUEL: ALL DEPARTMENTS 41096 11/21/2025 1,610.67 ACTION SALES & METAL CO. SUPPLIES: PUBLIC WORKS 41097 11/21/2025 AMAZON CAPITAL SERVICES, INC. VOID: MULTI-STUB CHECK 41098 11/21/2025 9,257.36 AMAZON CAPITAL SERVICES, INC. SUPPLIES: ALL DEPARTMENTS 41099 11/21/2025 3,121.55 AM ERG ENT TECHS, INC SERVICE: HARBOR 41100 11/21/2025 1,502.55 AT & T COMMUNICATIONS: ALL DEPARTMENTS 41101 11/21/2025 192,320.93 CR&RINCORPORATED CONTRACT SERVICES: 10/2025 41101 11/21/2025 6,112.49 CR&RINCORPORATED SWEEPER: 10/2025 41102 11/21/2025 2,270.00 AVALON FREIGHT SERVICES, LLC FREIGHT: ALL DEPARTMENTS 41103 11/21/2025 727.65 AVALON MOORING & DIVING SERVICE: HARBOR 41104 11/ 21/2025 24,083.33 AVALON SHOREBOAT SERVICE CORP. CONTRACT SERVICES: 12/ 2025 41105 11/21/2025 7,083.81 GEO RAY TECHNOLOGIES, INC. SERVICE: RECREATION 41106 11/21/2025 2,842.97 CART MART, INC. SUPPLI ES: GARAGE 41107 11/21/2025 1,654.21 CATALINA BEVERAGE CO SUPPLIES: ALL DEPARTMENTS 41108 11/21/2025 137,500.00 CATALINA CHAMBER OF COMMERCE TOT: 12/2025 41109 11/21/2025 87.00 CATALINA COFFEE & COOKIE CO. SUPPLIES: ALL DEPARTMENTS 41110 11/21/2025 19,179.00 CATALINA ISLAND COMPANY RENT: 11/2025 41111 11/21/2025 1,000.00 CATALINA ISLAND JANITORIAL SERVICE: ALL DEPARTMENTS 41112 11/21/2025 11,618.55 CATALINA ISLAND VACATIONS RENTALS TOT OVERPAYMENT 41113 11/ 21/2025 108.00 CATALINA ISLANDER ADVERTISING: ALL DEPARTMENTS 41114 11/2 1/2025 4,110.82 WINTERGREEN CORPORATION HOLIDAY DECORATIONS 41115 11/21/2025 120.81 COLONIAL LIFE PAYROLL LIABILITIES 41116 11/21/2025 809.42 DAPEER, ROSENBLIT & LITVAK,LLP SERVICE: VE HICLES 41117 11/21/2025 16,647.00 DAVIS FARR LLP SERVICE: FINANCE 41118 11/21/2025 617.00 DEWEY PEST CONTROL SERVICE: ALL DEPARTMENTS 41119 11/ 21/2025 783.89 DION & SONS MARINE FUELS INC FUEL: ALL DEPARTMENTS 41120 11/21/2025 228.44 EBERHARD EQUIPM ENT SUPPLI ES: GARAGE 41121 11/21/2025 240.54 EDISON UTI LITIES: ALL DEPARTMENTS 41122 11/21/2025 450.00 ANGELA TORRES PHILIPS SERVICE: RECREATION 41123 11/21/2025 1,177.00 GEOGRAPHIC DATA & MANAGEMENT SERVICE: PLANNING 41124 11/21/2025 14,607.20 GEO-LOG IC ASSOCIATES, LLC. PBL EXPANSION CIP 41125 11/21/2025 127.17 GLOBAL EQUIPMENT COMPANY SUPPLIES: PUBLIC WORKS 41126 11/21/2025 63.96 GONZALES, ALIANA REIMBURSMENT: 0/P COSTS 41127 11/21/2025 1,624.46 GRAINGER SUPPLIES: FIRE AND PUBLIC WORKS 41128 11/21/2025 11,262.16 GRANICUS, INC. SERVICE: FINANCE 41129 11/21/2025 37,564.43 IDR ENVIRONMENTAL SERVICES SERVICE: HAZARDOUS WASTE DISPOSAL 41129 11/21/2025 37,564.43 IDR ENVIRONMENTAL SERVICES SUPPLIES: HAZARDOUS WASTE DISPOSAL 41130 11/21/2025 2,340.00 INTERNATIONAL CONSULTING SERVICES SERVICE:CIP 180005 41130 11/21/2025 9,360.00 INTERNATIONAL CONSULTING SERVICES SERVICE: CIP 205014 41131 11/21/2025 2,097.00 MASA DUES: 10/2025 - 12/2025
41132 11/21/2025 710.15 MCDONALD, AUDRA RETIREE INSURANCE: 12/2025 41133 11/21/2025 900.82 MCMASTER-CARR SUPPLIES: PUBLIC WORKS 41134 11/21/2025 344.10 MM INTERNET, INC. SERVICE: IT
41135 11/21/2025 9,135.50 MONTROSE ENVIRONMENTAL SOLUTIONS SERVICE: CIP 180003 41136 11/21/2025 607.66 NORTHERN TOOL & EQUIPMENT CATALOG H SUPPLIES: GARAGE 41137 11/21/2025 2,630.50 OLYNS INC. SERVICE: ADMINISTRATION 41138 11/21/2025 205,361.25 PERC WATER CONTRACT SERVICES: 10/2025 41139 11/21/2025 1,172.55 QU ILL CORP SU PPLI ES: ALL DEPARTMENTS 41140 11/ 21/2025 75.00 REGISTRAR-RECORDER/COUNTY CLERK NOE FILING: HOUSING 41141 11/21/2025 9,658.75 RSG, INC SERVICE: HOUSING AUTHORITY 41141 11/ 21/2025 825.00 RSG , INC SERVICE: SUCCESSOR AGENCY 41142 11/21/2025 96.99 SFC HOLDINGS, LLC UNIFORMS: HARBOR 41143 11/21/2025 4,617.47 SOUTH COAST A.Q.M .D. WASTEWATER TREATMENT PLANT 41143 11/21/2025 170.94 SOUTH COAST A.QM.D. EMISSIONS FEE FY25-26 41144 11/21/2025 7,279.00 STATE WATER RESOURCES CONTROL BOARD ANNUAL PERMIT FEE 41145 11/21/2025 3,018.34 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL 41146 11/21/2025 18,750.00 VEGA, EDMUNDO CONTRACT SERVICES: 11/2025 41147 11/21/2025 1,477.91 VER IZON WIRELESS COMMUNICATIONS: ALL DEPARTMENTS 41148 11/21/2025 405.22 WALTERS WHOLESALE ELECTRIC CO SUPPLIES: PUBLIC WORKS 41149 11/21/ 2025 6,843.63 WESTRIDGE ENVIRONMENTAL GROUP SUPPLI ES: WWTP $ 843,457.94

Page 1 of 1 ends

LAST NAM E POST DATE AMTUSD
M . DAILEY 10/28/2025 65.00
M. DAILEY 10/29/2025 34.95
M. DAILEY 10/31/2025 62.00
M . DAILEY 11/ 3/ 2025 1,826.96
M . DAILEY 11/ 4/2025 219.00
M . DAILEY l l/4/202S 99.00
M . DAILEY ll/6/202S S8.34
M . DAILEY 11/6/2025 468.00
M . DAILEY 11/ 10/ 2025 160.09
M . DAILEY 11/ 17/ 2025 25.00
3,018.34

CITY O F AVALON
US BANK CREDIT CARD CHARGES PAID NOVEMBER 21, 2025
December 16, 2025

VENDOR DESCRIPTION
STARLINK INTERNET OPERATION COSTS: IT
SYNOLOGY OPERATION COSTS: IT
GET JOAN .COM OPERATION COSTS: IT
DMI" DELL OPERATION COSTS: IT
DOMOTZ INC OPERATION COSTS: IT
EXCLAIMER FARNBOROUG H OPERATION COSTS: IT
LANSHACK.COM OPERATION COSTS: IT
IN"INTRUSIONOPS LLC OPERATION COSTS: IT
MICROSOFT OPERATION COSTS: IT
CLOUDFLARE OPERATION COSTS: IT
CHECK 41145

Page 1 of 1 ends

DEPARTMENT
ADMIN
ADMIN
ADMIN
ADMIN
ADM IN
ADMIN
ADMIN
ADMIN
ADMIN
ADMIN

CHECK DATE

NUMBER ISSUED
41150
41151
41152
11/24/2025
11/24/2025
11/24/2025
AMOUNT

CITY OF AVALON

WARRANT DISBURSEMENTS
December 16, 2025
NAME
1,055.86 AVALON SMOKE HOUSE
185.64 QUILL CORP
9,357.91 SIRIA'S CLEANING SERVICE
$ 10,599.41

Page 1 of 1 ends

DESCRIPTION

PROGRAM SUPPLIES
SUPPLIES: ALL DEPARTMENTS
2ND HALF: 11/2025

CHECK DATE

NUMBER ISSUED
41153
41154
11/26/2025
11/26/2025
AMOUNT

CITY OF AVALON

WARRANT DISBURSEMENTS
December 16, 2025
NAME
2,720.36 EMPLOYEE PAYROLL
1,700.30 EMPLOYEE PAYROLL
$ 4,420.66

Page 1 of 1 ends

DESCRIPTION

PAYROLL ADJUSTM ENTS

PAYROLL ADJUSTMENTS

CHECK DATE

NUMBER ISSUED
41155 12/05/2025
41156
41157
41158
41159
41160
41161
41162
41163
41164
41165
41166
41167
41168
41169
41170
41171
41172
411 73
41174
41175
41176
41177
41178
41179
41180
41181
41182
41183
41184
41185
41186
41187
41188
41189
41190
41191
41192
41192
41193
41194
41195
41196
41197
41198
41199
41 200
41201
41202
41203
41204
41204
41204
41205
41206
41207
41208
41208
41209
41210
41211
41212
41213
412 14
41215
41216
41217
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/ 05/ 2025
12/ 05/2025
12/ 05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/ 05/2025
12/ 05/2025
12/05/2025
12/05/2025
12/ 05/2025
12/05/2025
12/05/2025
12/05/2025
12/ 05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/ 05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025
12/05/2025

CITY OF AVALON

WARRANT DISBURSEMENTS
December 16, 2025

AMOUNT NAME
1,280.00 4LEAF, INC.
1,314.81 ACTION SALES & METAL CO.
142.00 AIR SOURCE INDUSTRIES
1,399.38 ALEGRIA, VALENTE
AMAZON CAPITAL SERVICES, INC.
6,361.28 AMAZON CAPITAL SERVICES, INC.
451.76 AVALON FREIGHT SERVICES, LLC
1,823.32 AVALON MOORING & DIVING
2,750.00 FRANK BEACH
35,968.98 BEST, BEST & KRIEGER, LLP
5,010.30 BRAY, BRIAN
210.87 BRIDGESTONE HOSEPOWER, LLC
320.00 CAFE METROPOLE
1,226.30 CARSTARPHEN, ORNE
286.56 CART MART, INC.
706.82 CATALINA BEVERAGE CO
3,621.27 CATALINA BROADBAND SOLUTIONS
613.71 CATALINA CANYON INN
306.00 CATALINA ISLANDER
4,294.41 CDW GOVERNMENT
1,768.69 CHARLES E. THOMAS COMPANY, INC.
1,594.92 CLINE, KEN
186,631.57 CO. OF LOS ANGELES SHERIFF'S DEPT.
674.03 COAST TO COAST SOLUTIONS
2,287.11 COMPRESSED AIR SPECIALTIES, INC
5,884.31 CORE & MAIN
260,692.50 COUNTY OF LOS ANGELES FIRE DEPT
2,094.00 DAWES, BRIAN
433.88 DION & SONS MARINE FUELS INC
4,872.00 FLICKINGER, WILLIAM
400.00 ANGELA TORRES PHILIPS
786.80 GRAINGER
2,560.20 HERNANDEZ, OLGA
1,399.38 HERNANDEZ, RICHARD
4,626.30 HOEFS, STEVEN
2,560.20 HOHOWSKI, JANET MAY
1,235.00 IDR ENVIRONMENTAL SERVICES
2,102.97 JORDAHL CONSTRUCTION
2,762.80 JORDAHL CONSTRUCTION
459.86 KEVIN ZARAGOZA
2,759.64 KRUG, MICHAEL

43.39 LINDE GAS & EQUIPMENT INC.
4,260.90 LOPEZ, LEONARD
2,560.20 LOPEZ, PASTOR
2,450.00 MASSEY CONSTRUCTION, LLC
2,759.64 MCBRIDE, MATTHEW
12,733.27 SULLIVAN, MATTHEW
48,925.20 MONTROSE ENVIRONMENTAL SOLUTIONS

59.52 NAPA AUTO PARTS
200.00 NETMOORING
11,692.50 PERC WATER
694.58 PERC WATER
205,361.25 PERC WATER
2,299.68 POINDEXTER, JAMES
1,549.00 QUADIENT
1,297.60 QUILL CORP
3,699.06 RADDE, DENISE
(3,699.06) RADDE, DENISE
670.91 RICOH USA, INC.
124.55 SFC HOLDINGS, LLC
4,111.24 SPECIALTY DOORS
288.00 BRAVO, VERONICA
4,494.83 SUPERION, LLC
3,945.00 STATE WATER RESOURCES CONTROL BOARD
11,332.00 STATE WATER RESOURCES CONTROL BOARD
3,540.00 STATE WATER RESOURCES CONTROL BOARD
563.00 STATE WATER RESOURCES CONTROL BOARD

Page 1 of 2 ends

DESCRIPTION
SE RVICE: PLANNING
SUPPLIES: PUBLIC WORKS
SUPPLI ES: FIRE
RETIREE INSURANCE: 07/2025 - 12/2025
VOID: MULTI-STUB CHECK
SUPPLIES: ALL DEPARTMENTS
FREIGHT: ALL DEPARTMENTS
SERVICE: HARBOR
SERVICE: PUBLIC WORKS
LEGAL FEES: 10/2025
RETIR EE INSURANCE: 07/2025 - 12/2025
SUPPLIES: GARAGE
SENIOR MEALS: 11/2025
RETIREE INSURANCE: 11/2025 & 12/2025
SUPPLIES: GARAGE
SUPPLIES: ALL DEPARTMENTS
SERVICE: ALL DEPARTMENTS

LODGING
ADVERTISING: ALL DEPARTMENTS
SUPPLI ES: IT
SERVICE: HARBOR
RETIREE INSURANCE: 07/202S - 12/2025
RESIDENT DEPUTY: 10/2025
SUPPLIES: FIRE
SUPPLI ES: FIRE
SUPPLIES: PUBLIC WORKS
QUARLTY PAYMENTS: MEDICS
RETIREE INSURANCE: 07/2025 - 12/2025
FUEL: HARBOR
RETIREE INSURANCE: 07 /2025 - 12/2025
SERVICE: RECREATION
SU PPLI ES: PUBLIC WORKS
RETIREE INSURANCE: 07/202S - 12/2025
RETIREE INSURANCE: 07/2025 - 12/2025
RETIREE INSU RANCE: 07/2025 - 12/2025
RETIREE INSURANCE: 07/2025 - 12/2025
SUPPLI ES: HW DISPOSAAL
SERVICE: CIP 180002
SERVICE: PUBLIC WORKS

PAYCHECK
RETIREE INSURANCE: 07/2025 -12/2025
SUPPLIES: WELDING
RETIREE INSURANCE: 07 /2025 - 12/2025
RETIREE INSURANCE: 07 /2025 - 12/2025
SERVICE: HOUSING AUTHORITY
RETIREE INSURANCE: 07/2025 - 12/2025
SERVICE: CIP 205019
SERVICE: CIP 180003
SUPPLIES: GARAGE
SERVICE: HARBOR
CONTRACT SERVICES: 10/2025
CONTRACT SERVICES: 09/ 2025
CONTRACT SERVICES: 11/ 2025
RETIREE INSURANCE: 07/2025 - 12/2025
POSTAGE: REFILL
SUPPLIES: ALL DEPARTMENTS
RETI REE INSURANCE: 07/2025 - 12/2025

VOID CH ECK
COPIER LEASE : PLANNING
UNIFORMS: HARBOR
SERVICE: FIRE
SENIOR M EALS: 11/2025
SOFTWARE LEASE: FINANCE

ANNUAL PERMIT

CITY OF AVALON CITY COUNCIL
MEETING DATE: December 16, 2025
Administration
AGENDA ITEM: 5 ----
ORIGINATING DEP: CITY MANAGER:

PREPARED BY: Devin Hart, ·senior Management Analyst
SUBJECT: Resolution Approving and Adopting an Organizational Conflict of Interest Policy Covering Design-Build Projects
RECOMMENDED ACTION(S): Adopt a resolution approving and adopting an Organizational Conflict of Interest Policy Covering Design-Build Projects.

REPORT SUMMARY: The City of Avalon is currently engaged in a competitive request for qualifications (RFQ) from qualified design-build teams for the Cabrillo Mole Revitalization Project - Phase II. In development of the procurement documents for this project, City Staff became aware that there was no approved or adopted conflict of interest policy for progressive designbuild or design-build projects. The City Attorney's Office provided a policy for the City's consideration . A progressive design build project is one where a single contractor designs and constructs the project, with the design work done in phases. A design build project is one where a single contractor designs a project in one phase and then builds it.

The purpose of this policy is to establish guidelines, as required under California Public Contract Code sections 22162(c) and 22185.2, for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of consultants or contractors to perform work for the City relating to potential progressive design-build or design-build projects (together, a "Design-Build Project").

Per the proposed policy a potential Proposer will not be allowed to participate as a designbuild entity or to join a design-build team if any of the following is true:
•
•
•
•
Proposer is under contract with the City to manage or administer the Design-Build Project.

Proposer is under contract with any other entity or stakeholder to perform oversight of the design-build team for the City on the Design-Build Project.

Proposer has performed work on a previous contract with the City that expressly excludes them from participating as a design-build entity or joining a design-build team on the Design-Build Project.

Proposer would violate Government Code section 1090, including , but not limited to, Government Code section 1097.6.
• Proposer would violate any other applicable federal or state conflict-of-interest rules and regulations .

FISCAL IMPACTS: N/A.
65059 00000\42663899. I
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City may be out of compliance with State Law.

FOLLOW UP ACTION: Maintain a copy of the policy on file with the City Clerk and available to the public. The final Organizational Conflict of Interest Policy Covering Design-Build Projects shall be effective immediately upon adoption and approval.

ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENT(S):

1. Resolution
65059.00000\42663899. I
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

AVALON, CALIFORNIA, APPROVING AND ADOPTING AN
ORGANIZATIONAL CONFLICT OF INTEREST • POLICY

COVERING DESIGN-BUILD PROJECTS
WHEREAS, the City of Avalon is currently engaged in a competitive request for qualifications from qualified design-build teams for the Cabrillo Mole Revitalization ProjectPhase 11 ; and WHEREAS, the California Public Contract Code sections 22162(c) and 22 185.2 address the establishment and requirements for organizational conflict of interest policies for local agencies entering into progressive-design-build contracts; and WHEREAS, a public meeting was held upon the proposed amended Conflict of Interest Policy at a regular meeting of the City Council on December 16, 2025, at which all present were given an opportunity to be heard on the proposed amended policy.

NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF AVALON THAT:

Section 1. The City Council does hereby approve and adopt the proposed amended Organizational Conflict of Interest Policy Cover Design-Build Projects, a copy of which is attached hereto and shall be on file with the City Clerk and available to the public for inspection and copying during regular business hours; Section 2. The said amended Organizational Conflict of Interest Policy Cover Design-Build Projects shall become effective immediately upon adoption and approval.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Avalon this 16th day of December, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

Gabrielle Morones, City Clerk
City of Avalon , California
Ann H. Marshall, Mayor
City of Avalon , California
Purpose

CITY OF AVALON

ORGANIZATIONAL CONFLICT-OF-INTEREST POLICY COVERING

DESIGN-BUILD PROJECTS
The purpose of this policy is to establish guidelines, as required under California Public Contract Code sections 22162( c) and 22185.2, for a standard organizational conflict-of-interest policy, consistent with appli cable law, regarding the ability of consultants or contractors (collectively, "Proposer") to perform work for the City of Avalon ("City") relating to potential progressive design-build or design-build projects (together, a "Design-Build Project").

Policy
A potential Proposer will not be allowed to participate as a design-build entity or to join a designbuild team if, without limitation, any of the following is true:
• Proposer is under contract with the City to manage or administer the Design-Build Project. • Proposer is under contract with any other entity or stakeholder to perform oversight of the design-build team for the City on the Design-Build Project. • Proposer has performed work on a previous contract with the City that expressly excludes them from pai1icipating as a design-build entity or joining a design-build team on the Design-Build Project.
• Proposer would violate Government Code section 1090, including, but not limited to, Government Code section 1097.6.
• Proposer would violate any other applicable federal or state conflict-of-interest rules and regulations.

Proposer's Obligations
Proposers shall make a full written disclosure to the City of the facts and circumstances regarding an organizational conflict-of-interest or a potential organizational conflict-of-interest and shall have a continuing obligation to do so until they are no longer Proposers.

Proposers sha ll disclose in the response documents to a request for qualifications or request for proposals for a Design-Build Project, all of the work previou ly performed in relation to the Design-Build Project.

Proposers shall conform to applicable federal and state conflict-of-interest rules and regulations including, without limitation, the California Political Reform Act, California Government Code Section 1090, the federal Copeland "Anti-Kickback" Act and federal conflict-of-interest rules set forth in the federal funding agency's administrative grant and cooperative agreement regulations.

Federal conflict-of-interest rules and regulations shall only apply where the Design-Build Project receives federal funding.
65059.000 11 \44393640.1
Conflict-of-Interest Issues
Resolution of a conflict-of-interest issue is ultimately at the sole discretion of City. If a Proposer determines that a conflict-of-interest or potential conflict-of-interest exists, it must disclose the conflict or potential conflict-of-interest to the City. The disclosure may or may not disqualify a Proposer from being awarded a contract. The Proposer shall propose measures to avoid, neutrali ze, or mitigate all conflicts or potential conflicts. City, in its sole discretion, shall determine whether the proposed measures are sufficient to overcome the conflict or potential conflict and whether the Proposer may continue with the procurement process. City has the right to terminate or amend a resulting design-build project contract if the successful Proposer failed to disclose a conflict or potential conflict that it knew or should have known about, or if the Proposer provided information in its di closure that is false or misleading.

The successful Proposer to whom a contract is awarded has an ongoing obligation to monitor and disclose its conflicts or potential conflicts-of-interest. City has a right to ongoing enforcement of this policy. If an organizational conflict-of-interest is discovered after award, the Proposer will make an immediate and full written disclosure to the City that includes a description of the action that the Proposer has taken or proposes to take to avoid or mitigate such conflicts. If an organizational conflict-of-interest is determined to exist and the Proposer was aware of an organizational conflict-of-interest prior to award of the contract and did not disclose the conflictof-interest, City may terminate the contract with the Proposer for material breach. If the Proposer is terminated, City assumes no obligations, responsibilities and liabilities to reimburse all or part of the costs incurred or alleged to have been incurred by the Proposer.

This policy shall be incorporated by reference into and included as part of all City design build project requests for qualifications, requests for proposals, and all City design-build contracts.

This policy shall not constitute a limitation on the obligations of the Proposer in relation to any organizational conflict-of-interest.
65059.000 11 \44393640. 1
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
December 16, 2025
Administration
AGENDA ITEM: Lf ----
CITY MANAGER: t>YA'll
Devin Hart, Senior Management Analyst
State of California General Fund Allocation for the Green Pleasure Pier Deck Replacement Project
RECOMMENDED ACTION(S): Adopt the resolution approving and accepting State of California General Fund Grant Funds for the Green Pleasure Pier Deck Replacement Project.

REPORT SUMMARY: Thanks to an allocation requested by Senator Lena Gonzales, the California Legislature and Governor have approved a $1 million grant from the state general fund to support the City of Avalon's Green Pleasure Pier Deck Replacement Project.

The California Natural Resources Agency has been delegated the responsibi lity for administration of the grant project. The City must comply with the processes and procedures established by the California Natural Resources Agency in order to receive reimbursement for activities included in the City's grant agreement. The California Natural Resources Agency requires all grant recipients to certify by resolution the approval of a Project Information Packet before submission of that packet to the state. After submission and acceptance of the Project Information Packet, the City will receive the grant agreement for these funds .

The proposed resolution resolves the approval and acceptance of these grant funds, certifies the City's understanding and compliance with the grant agreement and California Labor code, as well as designates the City Manager as the City's representative to conduct all negotiations, and execute and submit all documents.

GOAL ALIGNMENT: Fiscal sustainability and vital infrastructure improvements.

FISCAL IMPACTS: The $1 ,000,000.00 grant award will support the previously unfunded Green Pleasure Pier Deck Replacement Project.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not be eligible to receive the allocated grant funds and would incur the entire cost of associated with this project.

FOLLOW UP ACTION: Complete the Program Information Packet and provide it to the California Natural Resources Agency with adopted resolution.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENT: Resolution.

RESOLUTION NO. _____ _

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF AVALON, CALIFORNIA, APPROVING THE ACCEPTANCE

OF GENERAL FUND GRANT FUNDS FOR

GREEN PLEASURE PIER DECK REPLACEMENT PROJECT
WHEREAS, the Legislature and Governor of the State of California have approved a grant for the project shown above; and
WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require the Grantee to certify by resolution the approval of a Project Information Package before submission of said package to the State; and
WHEREAS the Grantee will enter into an agreement with the State of California for the above project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Avalon does herby resolve as follows:

1. Approves the acceptance of a general fund allocation for local assistance for the above project(s); and

2. Certifies the grantee understands the assurances and certification in the Project Information Form; and

3. Certifies the grantee will have sufficient funds to acquire and/or develop, operate and maintain the project consistent with the land tenure requirements of the Grant Agreement; or will secure the resources to do so; and

4. Certifies the grantee will comply with the prevailing wage provisions of the California Labor Code.

5. If applicable, certifies the project will comply with any laws and regulation including, but not limited to, the California Environmental Quality Act (CEQA}, legal requirements for building codes, health and safety codes , disabled access laws, environmental laws and, that prior to commencement of construction, all applicable licenses and permits will have been obtained.

6. Appoints the City Manager, or designee, as agent to conduct all negotiations, execute and submit all documents including, but not limited to the Project Information Form, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s).

Passed, Approved and Adopted on the 16th day of December, 2025.

I, the undersigned, hereby certify that the forgoing Resolution Number ____ was duly adopted by the City Council of the City of Avalon following a roll vote; Ayes:

Noes:

Absent:

Abstain:

Ann H. Marshall, Mayor
Gabrielle Morones, City Clerk
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
December 16, 2025
Capital Improvements
AGENDA ITEM: 5 ----
CITY MANAGER: f:JJJ__(
Devin Hart, Senior Management Analyst
Request for Bids for Green Pleasure Pier Deck Replacement Project
RECOMMENDED ACTION(S): Authorize the City Manager or his designee to develop and solicit a request for bids from qualified contractors for the Green Pleasure Pier Deck Replacement Project.

REPORT SUMMARY: Since 2018, City Staff has been working on a long term maintenance plan for the Green Pleasure Pier. Currently maintenance work on the pier is accomplished by City forces where feasible, but there is a limit to the size and scope of a project. When the size and scope becomes too large, a contractor is necessary.

In 2022, the City Council awarded a contract for the Green Pleasure Pier 2022 Repair Project to Jilk Heavy Construction, Inc. for a not to exceed amount of $266,980.00. This project replaced five pier pilings. The repairs required portions of the pier to be closed intermittently to pedestrian traffic; however, the City worked with the contractor to ensure that the businesses on the pier remained open throughout the project.

In November 2024, the City developed a plan to replace piles on the Green Pleasure Pier by marine barge. The plan would have significantly less impact on the commercial businesses on the pier, as well as provide a convenient, dedicated and secure space for a contractor to maintain tools and supplies associated with the job. The City Council awarded a contract to Jilk Heavy Construction to replace 21 pier piles - 5 fender piles and 16 structural piles. During the duration of the project the City was able to replace a total of 22 piles - 5 fender piles and 17 structural piles.

On December 1, 2025, the City was informed that thanks to an allocation requested by Senator Lena Gonzales, the California Legislature and Governor have approved a $1 million grant from the state general fund to support the City of Avalon's Green Pleasure Pier Deck Replacement Project.

Replacement of the Green Pleasure Pier Deck is a timing sensitive project. The City understands the importance of coordinating construction during the off season so as not to adversely affect commercial and recreational operations of the Pier.

After an initial conversation with the California Natural Resources Agency - the agency delegated responsibility for the administration of the grant project - City Staff believe it may be possible to complete the deck replacement project before Memorial Day 2026.

In order to take advantage of the opportunity to complete this project before the Summer 2026 season, City Staff recommends the City Council authorizes the City Manager or his designee to develop and solicit a request for bids from qualified contractors for the Green Pleasure Pier Deck Replacement Project. Similar to the April 2025 project, the City will include potential structural repair additive bid opportunities for contractors to bid on in case there is sufficient funding in the Harbor Fund to further support additional infrastructure repairs (pile or pile cap replacement, etc.) to the Green Pleasure Pier.

If it is not possible to complete this project prior to Memorial Day 2026, the project will be pushed to the Fall/Winter 2026.

FISCAL IMPACTS: Undetermined; however, a $1 million allocation has been earmarked thanks to Senator Lena Gonzales by way of the California Natural Resources Agency.

GOAL ALIGNMENT: Infrastructure management.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will not contract with a qualified contractor to perform essential repairs to the Green Pleasure Pier and the Club Docks.

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:None.

MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
December 16, 2025 AGENDA ITEM: 0
Finance CITY MANAGER: ~ d),~
Matthew Baker, Finance Director
Development Impact Fees Annual Report for the Fiscal Year Ended June 30, 2025
RECOMMENDED ACTION(S): Receive and file the Fiscal Year 2024-25 Development Impact Fees Annual Report.

REPORT SUMMARY: On February 18, 2020, City Council adopted the findings of the development impact fee nexus study and established certain development impact fees and capacity charges. Development impact fees (DIFs) are fees charged by a local government agency that developers and applicants pay for either all or a portion of the cost of providing public infrastructure and services to the new development. DIFs can also help streamline the development approval process as the typical impacts will have been identified and quantified in a per unit basis, in advance of any development proposal. Capacity charges are City imposed charges on new development for existing and/or future wastewater capacity needed for new development.

Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year. The fiscal year ended June 30, 2025 was the fifth year with fees paid subject to reporting requirements. The report describes the fees, the amount of the fees collected , interest earned , and identification of any expenditures from those funds. The FY 2024-25 Development Impact Fee Annual Report is attached for City Council 's review and approval.

For all funds established for the collection and expenditure of DIFs, California Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended , whether committed or uncommitted:
a) Identify the purpose to which the fee is to be put.
b) Demonstrate a reasonable relationship between the fee and purpose for which it is charged .
c) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). d) Designate the approximate dates on which the funding referred to in subparagraph (c) is expected to be deposited into the appropriate account or fund .

The City expended all of the funds collected over the five year period during the fiscal year ended June 30, 2025 on projects as identified in the adopted nexus study dated January 2, 2020.

GOAL ALIGNMENT: Compliance with reporting requirements
FISCAL IMPACTS: There is no fiscal impact by the recommended action as this reports development impact fee activity for the fiscal year ended June 30, 2025.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: FY 2024-25 Development Impact Fees Annual Report City of Avalon

ANNUAL DEVELOPMENT IMPACT FEE REPORT
Legal Requirements for Development Impact Fee (DIF) Reporting California Government Code Section 66006 (b)
California Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIFs on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days of the close of the fiscal year, make available to the public the information shown below for the most recent fiscal year.
a) A brief description of the type of fee in the account or fund . b) The amount of the fee.
c) The beginning and ending balance of the account or fund. d) The amount of the fees collected and interest earned. e) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
t) (i) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001 , and the public improvement remains incomplete.
(ii) An identification of each public improvement identified in a previous report pursuant to clause (i) and whether construction began on the approximate date noted in the previous report.
(iii) For a project identified pursuant to clause (ii) for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction. g) A description of each inter-fund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an inter-fund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. h) The amount of refunds made pursuant to subdivision (e) of Section 66001 , the number of persons or entities identified to receive those refunds, and any allocations pursuant to subdivision (t) of Section 6600 I.

California Government Code Section 66001 (d)
For all funds established for the collection and expenditure of DIFs, California Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following 1 65059.00000\44462968.1
findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
a) Identify the purpose to which the fee is to be put.
b) Demonstrate a reasonable relationship between the fee and purpose for which it is charged. c) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). d) Designate the approximate dates on which the funding referred to in subparagraph (c) is expected to be deposited into the appropriate account or fund. 2 65059 .00000\44462968.1
Fire Protection (Fund 301)
Description of Development Impact Fees (DIF)
The fire protection impact fee revenues may be used to purchase land for expansions to the fire station and/or to construct new facilities, upgrade existing facilities, purchase vehicles and personal protection equipment and other equipment with a minimum five-year life span, enhance the utility of existing systems, and/or perform refurbishment within the parameters allowed by Government Code Section 66000.

Fee Amount
Land Use Type Fire Protection Fee
Residential (per square foot) $3.56
Nonresidential (per square foot or as noted)
Lodging (per room) $2,588.04
Fee Report
Retail/Commercial
Office/Professional Services
Industrial
Medical Clinics
Leisure/Hospitality Services
Public/Institutional
Transportation/Warehouse/Utilities
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2025
Revenues FY 24/25
Fees $0.00
Investment Earnings 474.97
Other 0.00
Total Revenues $474.97
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) (24,293.64)
Total Expenditures (24,293.64)
Rev Over (Under) Exp (23 ,818.67)
Beginning Fund Balance 24,293.64
Ending Fund Balance $474.97
3 65059 .00000\44462968 I
$1.28
$1.37
$0.68
$1.02
$0.85
$1.02
$0.51
California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. Fire Protection DIF funds were transferred to the General Fund to contribute to the purchase of new self-contained breathing apparatus (SCBA), respirators worn by firefighters to provide breathable gas in hazardous environments.

Capital Project DIF Project % Funded by
Expenditures Expenditures DIF
Purchase ofSCBA; 15 year estimated lifespan $24,293.64 $334,372.08 7.3% The SCBAs were purchased in December 2024. No specific equipment purchase or construction project had previously been identified in a prior annual report. An interfund transfer of $24,293.64 was completed during the reporting period to partially fund the purchase of SCBAs with General Fund contributions used to fund the remaining balance. No refunds were issued during this reporting period.

Section 66001 requires that, for the fifth fiscal year following the first deposit of any impact fee revenue into an account or fund as required by Section 66006, and every five years thereafter, the City must make all of the following findings for any fee revenues that remain unexpended, whether committed or uncommitted:

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 10,690.68 $2,719.84 $8,910.68 $640.80 $0.00
Investment Earnings 34.42 32.86 409.60 854.76 474.97
Other 0.00 0.00 0.00 0.00 0.00
Total Revenues $10,725.10 $2,752.70 $9,320.28 $1,495 .56 $474.97 Expenditures
Expenditures 0.00 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00 0.00
Transfers in (out) 0.00 0.00 0.00 0.00 (24,293.64)
Total Expenditures $0.00 $0.00 $0.00 $0.00 (24,293.64)
Rev Over (Under) Exp 10,725.10 $2,752.70 $9,320.28 $1 ,495.56 (23 ,818.67) Beginning Fund Balance 0.00 10,725.10 13,477.80 22,798.08 24,293.64 4 65059.00000144462968.1
I Ending Fund Balance $10,125.10 1 $1 3,477.so 1 $22,198.08 1 $24,293.64 I $474.97 I The unexpended funds relate to interest accrued during the fifth year. The funds will be put towards the purchase of a new Fire vehicle budgeted for the fiscal year ending June 30, 2026. The purchase of new Fire equipment, including vehicles, was identified in the nexus study. The purchase will include grant funding of approximately $650,000 and General Fund contributions of approximately $120,000, in addition to the remaining DIF balance. The funds will be deposited during the second half of the current fiscal year.

Circulation (Fund 302)
Description of Development Impact Fees (DIF)
The circulation fee is intended to contribute to the funds needed to improve mobility, access and safe travel to and from homes, businesses and activities for all users of the circulation system, including bicyclists and pedestrians as well as motor vehicles. The circulation and mobility improvements will be designed with the goal of also providing benefits related to parking by reducing the overall demand for motor vehicle parking spaces.

Fee Amount
Land Use Type Circulation Fee
Residential (per square foot) $1.32
Nonresidential (per square foot or as noted)
Lodging (per room) $923 .13
Fee Report
Retail/Commercial
Office/Professional Services
Industrial
Medical Clinics
Leisure/Hospitality Services
Public/Institutional
Transportation/Warehouse/Utilities
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2025
Revenues FY 24/25
Fees $0.00
Investment Earnings 180.89
Other 0.00
Total Revenues $180.89
5 65059 .00000\44462968. I
$1.69
$0.52
$0.35
$0.90
$0.66
$0.21
$0.69
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) (9,252.49)
Total Expenditures ($9,252.49)
Rev Over (Under) Exp (9,071.60)
Beginning Fund Balance 9,252.49
Ending Fund Balance $180.89
California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees.

Circulation DIF funds were transferred to the General Fund to contribute to the Five Corners Pedestrian Improvement Project.

Capital Project
Five Corners Pedestrian Improvement Project
DIF
Expenditures
$9,252.49
Project % Funded by
Expenditures DIF ----+--------1
$2,887,128.13 0.3%
--~-----~
Construction began on the Five Corners Pedestrian Improvement Project during the second quarter of the fiscal year ended June 30, 2025. No specific construction project had previously been identified in a prior annual report. An interfund transfer of $9,252.49 was completed during the reporting period to provide local matching funds for the construction of the Five Corners Pedestrian Improvement Project, which was identified in the nexus study as an approved project.

The Five Comers Pedestrian Improvement Project is a complete streets design improvement to the intersections of Tremont Street, Avalon Canyon Road, Country Cl ub Drive, and Sumner Avenue.

The $5.8 million project is primarily funded by grants including funds from Local Transportation Funds through the Los Angeles County Metropolitan Transportation Authority (Metro), State of California's State Active Transportation Grant through the California Transportation Commission (CTC), and a local match from the City which includes the City's Senate Bill (SB) 1 annual allocation derived from fuel taxes and vehicle fees. No refunds were issued during this reporting period.

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
6 65059 .00000\44462968. 1

3. Identify all sources and amounts of funding antic ipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited in to the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees $3,963.96 $1 ,008.48 $3 ,527.51 $237.60 $0.00
Investment Earnings 12.76 21.89 154.62 325.67 180.89
Other 0.00 0.00 0.00 0.00 0.00
Total Revenues $3,976.72 $1 ,030.37 $3,682.13 $563 .27 $180.89 Expenditures
Expenditures 0.00 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00 0.00
Transfers in (out) 0.00 0.00 0.00 0.00 (9,252.49)
Total Expenditures $0.00 $0.00 $0.00 $0.00 ($9,252.49)
Rev Over (Under) Exp 3,976.72 $1 ,030.37 $3 ,682. 13 $563.27 (9,071.60) Beginning Fund Balance 0.00 3,976.72 5,007.09 8,689.22 9,252.49 Ending Fund Balance $3,976.72 $5,007.09 $8,689.22 $9,252.49 $180.89 The unexpended funds relate to interest accrued during the fifth year. The funds will be put towards the Five Comers Pedestrian Improvement Project to be completed during the current fiscal year.

The project was identified in the nexus study. The remaining portion of the project will be completed through $3.2 million in grant funding from the CTC with General Funds totaling approximately $300 thousand will be used to provide a local match during the second half of the current fiscal year.

Transportation (Fund 303)
Description of Development Impact Fees (DIF)
The transportation improvements provide for expanded wharf, pier, docking, and moorage facilities to accommodate the increase in passengers on cruise ships and cross channel ferries that will attend new development. Transportation improvements may also include freight handling facilities and airport improvements. The public use facilities fee revenues may be used to purchase land, to construct, upgrade, and expand facilities, and/or to perform refurbishment within the parameters allowed by Government Code Section 66000.

Fee Amount
Land Use Type Transportation Fee
Residential (per square f oot) $2.63
Nonresidential (per square foot or as noted)
7 65059.00000\44462968 . I
Lodging (per room) $1,886.59
Fee Report
Retail/Commercial
Office/Professional Services
Industrial
Medical Clinics
Leisure/Hospitality Services
Public/Institutional
Transportation/Warehouse/Utilities
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2025
Revenues FY 24/25
Fees $0.00
Investment Earnings 346.70
Other 0.00
Total Revenues $346.70
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) (17,733.24)
Total Expenditures ($17,733.24)
Rev Over (Under) Exp ($17,386.54)
Beginning Fund Balance $17,733.24
Ending Fund Balance $346.70
$0.94
$1.01
$0.50
$0.75
$0.63
$0.75
$0.38
California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees.

Transportation DIF funds were transferred to the Harbor Fund to contribute to the second phase of the Cabrillo Mole Ferry Terminal rehabilitation, which will replace and reconfigure the existing buildings and structures to improve passenger queuing and circulation.

Capital Project DIF Project % Funded by
Expenditures Expenditures DIF
Cabrillo Mole Ferry Terminal Rehabilitation $17,733 .24 $725,299.83 2.4% During the current fiscal year, the City anticipates completing the purchase and installation of temporary facilities, as well as the purchase of long-lead equipment associated with the upgraded utility system. The City will also install grates along the easternly face of the wharf to allow additional access for emergency vehicles and other equipment during construction. Utilizing a 8 65059.00000\44462968. I
progressive design build procurement and delivery process, a request for qua lified contractor/designer teams was solicited on ovember 17, 2025. The City anticipates awarding a contract for design services, engineeri ng, and construction by Spring 2026 with construction scheduled to begin by late Fall 2026 and completed before the Summer 2028. No specific construction project had previously been identified in a prior annual report. An interfund transfer of $17,733.24 was completed during the reporting period to provide local matching funds for the engineering of the Cabrillo Mole Ferry Terminal rehabilitation, which was identified in the nexus study as an approved project. No refunds were issued due to protests during this reporting period.

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited into the appropriate account of fund .

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 7,898 .89 $2,009.32 $6,359.34 $473.40 $0.00
Investment Earnings 25.43 43.62 300.42 623.83 346.70
Other 0.00 0.00 0.00 0.00 0.00
Total Revenues $7,923.31 $2,052.94 $6,659.76 $1 ,097.23 $346.70 Expenditures
Expenditures 0.00 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00 0.00
Transfers in (out) 0.00 0.00 0.00 0.00 ( 17,733 .24)
Total Expenditures $0.00 $0.00 $0.00 $0.00 ($17,733.24) Rev Over (Under) Exp 7,923.3 1 $2,052.94 $6,659.76 $ 1,097.23 ($ 17,386.54) Beginning Fund Balance 0.00 7,923 .3 1 9,976.25 16,636.01 $17,733.24 Ending Fund Balance $7,923.3 1 $9,976.25 $16,636.01 $17,733.24 $346.70 The unexpended funds relate to interest accrued during the fifth year. The fund s will be put towards the construction of the Cabrillo Mole Ferry Terminal budgeted for the fiscal year ending June 30, 2026. The project was identified in the nexus study. The City anticipates spending more than $2,000,000 in the current year and $20,000,000 on the overall project, with approximately $16,000,000 funded using various federal grants and the remaining balance of $4,000,000 using local Harbor Funds. The funds are estimated to be deposited during the second half of the current fiscal year.
9 65059.00000\44462968.1
Landfill (Fund 304)
Description of Development Impact Fees (DIF)
Landfill fund impact fee revenues may be used for the landfill closure-post closure and corrective action costs, constructing a new solid waste transfer station and recycling center, and funding the capital costs of enhanced recycling programs. The fair-share capital costs of alternatives to landfill disposal may also be funded by the fee revenues.

Fee Amount
Land Use Type Landfill Fee
Residential (per square foot) $2.88
Nonresidential (per square foot or as noted)
Lodging (per room) $2,067.07
Fee Report
Retail/Commercial
Office/Professional Services
Industrial
Medical Clinics
Leisure/Hospitality Services
Public/Institutional
Transportation/Warehouse/Utilities
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2025
Revenues FY 24/25
Fees $0.00
Investment Earnings 384.69
Other 0.00
Total Revenues $384.69
Expenditures
Expenditures 0.00
Other 0.00
Transfers in (out) (19,675 .69)
Total .Expenditures ($19,675.69)
Rev Over (Under) Exp ($19,291.00)
Beginning Fund Balance 19,675.69
.Ending Fund Balance $384.69
10 65059 .00000\44462968. I
$1.03
$1.10
$0.55
$0.83
$0.69
$0.83
$0.41
California Government Code Section 66006 (b) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees. Landfill DIF funds were transferred to the Solid Waste Fund to contribute to the annual prefunding of landfill closure and corrective action costs during the reporting period.

Capital Project
Landfill trust contribution
DIF
Expenditures
$19,675.69
Project
Expenditures
$316,000.00
% Funded by
DIF

6.2%
The City contributes annually to its landfill trust to fund closure costs, with closure estimated in the next two years based on current usage. The City is working to expand the landfill to extend its useful life and delay its closure. No specific construction project had previously been identified in a prior annual report. An interfund transfer of $19,675.69 was completed during the reporting period to contribute to the annual prefunding of landfill closure and corrective action costs into the City's landfill trust account, which was identified in the nexus study as an approved project. No refunds were issued during this reporting period.

1. Identify the purpose to which the fee will be put.

2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.

3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which the impact fees are to be used.

4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited into the appropriate account of fund.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 8,648.64 $2,200.32 $7,208.64 $518.40 $0.00
Investment Earnings 27.85 47.78 331.78 692.28 384.69
Other 0.00 0.00 0.00 0.00 0.00
Total Revenues $8,676.49 $2,248.10 $7,540.42 $1,210.68 $384.69 Expenditures
Expenditures 0.00 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00 0.00
Transfers in (out) 0.00 0.00 0.00 0.00 (19,675.69)
Total Expenditures $0.00 $0.00 $0.00 $0.00 ($19,675.69) Rev Over (Under) Exp $8,676.49 $2,248.10 $7,540.42 $1 ,210.68 ($19,291.00) Beginning Fund Balance 0.00 8,676.49 10,924.59 18,465.0 I 19,675.69 11 65059 .00000\44462968. I
I Ending Fund Balance $8,676.49 1 $10,924.59 1 $18,465 .01 $19,675.69 1 $384.69 1 The unexpended funds relate to interest accrued during the fifth year. The funds will be put towards future landfill trust contributions which were identified in the nexus study. The landfill colsure costs will primarily be funded by existing trust funds and budgeted contributions of approximately $350,000 generated from user charges for Solid Waste. The funds are estimated to be deposited during the second half of the current fiscal year.

Wastewater (Fund 305)
Description of Capacity Charges
Wastewater capacity charge revenues may be used for any of the improvements listed in Table 8.3 of the Development Impact Mitigation Fees Nexus Study and Capacity Charges for Wastewater and Reclaimed Water Report adopted by City Council on February 18, 2020 or for capacity expansion, or sanitary sewer service extension projects. Portions of the revenues may also be used for waste water treatment plant (WWTP) capital replacements or system rehabilitation, and/or be placed in the sewer system capital reserve account to be used to offset future rate increases.

Charge Amount
Land Use Type Wastewater Charge
Residential (per square foot) $5.41
Nonresidential (per square foot or as noted)
Lodging (per room) $2,921.39
Retail/Commercial $2.43
Office/Professional Services $4.87
Industrial $4.87
Medical Clinics $7.25
Leisure/H.ospitality Services $2.92
Public/Institutional $4.06
Transportation/W arehouse/Uti I it ies $0.60
Charge Report
Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2025
Revenues FY 24/25
Fees $0.00
Investment Earnings 213.25
Other 0.00
Total Revenues $213.25
12 65059.00000\44462968. I
Expenditures
Expenditures 0.00
Other I 0.00
Transfers in (out) (10,907.98)
Total Expenditures ($10,907.98)
Rev Over (Under) Exp ($10,694.73)
Beginning Fund Balance 10,907.98
Ending Fund Balance $213.25
California Government Code Section 66013(d)(4)(A) requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the percentage of the costs of the public improvement that was funded with fees.

Wastewater Capacity funds were transferred to the Sewer Fund to contribute to the replacement of the WWTP's communication system to allow for remote monitoring of sewer lift stations, which included hardware replacement, software integration and training.

Capital Project DIF Project % Funded by
Expenditures Expenditures DIF
WWTP Radio Frequency 1/0 Replacement $10,907.98 $99,143.00 11.0% Improvements to the WWTP were identified in the nexus study and the Radio Frequency I/0 Replacement project was completed during the reporting period. No specific construction project had previously been identified in a prior annual report. An interfund transfer of $10,907.98 was completed during the reporting period to contribute to the replacement of the WWTP communication system. No refunds were issued during this reporting period.

Revenues FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Fees 6,091 .66 $4,133.24 $0.00 $0.00 $0.00
Investment Earnings 19.61 39.96 234.83 388.68 213.25
Other 0.00 0.00 0.00 0.00 0.00
Total Revenues $6, 11 l.27 $4,173.20 $234.83 $388.68 $213.25 Expenditures
Expenditures 0.00 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00 0.00
Transfers in (out) 0.00 0.00 0.00 0.00 (10,907.98)
Total Expenditures $0.00 $0.00 $0.00 $0.00 ($10,907.98) Rev Over (Under) Exp $6,111.27 $4,173.20 $234.83 $388.68 ($10,694.73) Beginning Fund Balance 0.00 6,111.27 I 0,284.47 10,519.30 I 0,907.98 Ending Fund Balance $6,111.27 $10,284.47 $10,519.30 $10,907.98 $213.25 13 65059.00000144462968.1

CITY OF AVALON CITY COUNCIL ACTING AS

THE HOUSING AUTHORITY OF THE CITY OF AVALON
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

December 16, 2025
Housing Authority
Matthew Baker, Finance Director
AGENDA ITEM:

CITY MANAGER:
i
SUBJECT: Housing Successor Agency Annual Report for Fiscal Year 2024-25 RECOMMENDED ACTION: Adopt a resolution approving a Housing Authority Successor Agency Annual Report for Fiscal Year 2024-25.

REPORT SUMMARY:

Housing Successor Agency Annual Report
Health and Safety Code Section 34176.1 (enacted by Senate Bill 341 and Assembly Bill 1793) requires successor housing entities to prepare an annual report documenting compliance with expenditure proportionality and other requirements pertaining to the housing asset fund . The report is due to the California Department of Housing and Community Development by December 31 , 2025.

The Annual Report includes the following information required by law:
• Amounts deposited into the Housing Asset Fund;
• Statement of the balance of the Housing Asset Fund ;
• Description of expenditures by category;
• Statutory value of real property;
• Description of transfers from the former Avalon Community Improvement Agency; • Description of projects that receive funding through the Successor Agency's Recognized Obligation Payment Schedule;
• Status of property disposition efforts;
• Update on inclusionary and replacement housing obligations; • Compliance with five-year expenditure obligations;
• Percentage of senior deed-restricted units;
• Amount of excess surplus; and
• An inventory of homeownership units with affordability restrictions.

Low and Moderate Income Housing Asset Fund
The Housing Asset Fund includes all of the assets that were transferred from the Avalon Community Improvement Agency ("ACIA") to the Housing Authority upon dissolution of the ACIA. The assets include:
• Real properties,
• Affordable housing covenants,
• Loan receivables ,

Page 1 of 3 ends

• Income from ground leases and rental properties, and
• Supplemental Educational Revenue Augmentation Fund Loan.

A total of $21 ,323 was deposited into the Housing Asset Fund during the fiscal year. At the close of Fiscal Year 2024-25, the ending asset balance in the Housing Asset Fund was $5,071,465. Land held for resale and cash constitute most this amount. The Housing Asset Fund had a cash balance of approximately $1 ,103,178 at the close of the fiscal year.

There were no administrative expenditures from the Housing Asset Fund in Fiscal Year 2024-

25. Affordable housing development-related expenditures totaled $512,311 for the 206 E.

Whittley housing project.

Property and Project Descriptions
The ACIA transferred seven real properties to the Housing Authority that were approved by DOF in 2012. The Housing Authority sold two of the properties in FY 2013-14, with the following five properties remaining :
• 309 Beacon Street
• 313 Beacon Street
• 238 Descanso Avenue
• 311 Descanso Avenue
• 206 E. Whittley Avenue
All of the properties with the exception of 206 E. Whittley Avenue have been developed for affordable housing purposes and are in compliance with property disposition requirements. A multi-family property at 206 E. Whittley Avenue was purchased by the ACIA in 2008 with the intent to develop new affordable housing units. However, the ACIA was unable to pursue development due to the dissolution of redevelopment. In July 2019, the City Council acting as Housing Authority approved the final construction plans and authorized staff to develop and release the request for proposals to rehabilitate the property to be rented to low and moderate income residents and in October 2019, authorized City Staff to move forward in developing a preliminary site plan and feasibility study for the development of five units, through the replacement of one unit and addition of four new units. The Authority subsequently awarded a contract to a qualified vendor to complete the necessary site preparation work in FY 2023-24, which is expected to be complete in FY 2025-26.

Outstanding lnclusionary and Replacement Housing Obligations The former ACIA had a 52-unit surplus of affordable housing units as of February 1, 2012.

Therefore, there are no outstanding affordable unit production obligations to fulfill.

Income & Age Proportionality
If housing successors expend money on projects, SB 341 requires at least 30 percent to be spent on extremely low-income rental housing , among other restrictions. The Housing Authority funds expended were for site preparation to develop additional units on the 206 E.

Whittley property to assist extremely low-income households. As such, the Housing Authority is in compliance with expenditure proportionality requirements .

Page 2 of 3 ends

SB 341 also sets a limit on the portion of publicly assisted deed-restricted rental housing that may be restricted to seniors. There have been no deed-restricted rental units assisted by the Housing Authority or City in the past 10 years, therefore the Housing Authority is in compliance with this requirement.

Excess Surplus
SB 341 reinstated a requirement to prevent housing successors from accumulating an excess surplus, which is generally defined as unencumbered cash that exceeds the greater of $1 million or the aggregate amount deposited into the Housing Asset Fund in the preceding four years. Since the housing successor did not exist until 2012, the first year this calculation can be performed is Fiscal Year 2016-17. The Housing Authority previously accumulated an excess surplus in FY 2019-20, 2020-21 , and 2021-22 totaling $517,338 but encumbered $700,000 for the 206 East Whittley affordable housing project in FY 2022-23, thereby eliminating the excess surplus, with $512,311 of the encumbered funds spent to date. The Housing Authority did not have an excess surplus in FY 2024-25.

Homeownership Unit Inventory
The Housing Authority oversees five homeownership units with affordability restrictions. All units are moderate-income households assisted through the First-Time Homebuyer Program.

ENVIRONMENTAL REVIEW: The action taken by the Housing Authority to approve the Housing Successor Agency Annual Report does not commit the Housing Authority to any actions that may have a significant effect on the environment. As a result, such actions do not constitute projects subject to the requirements of the California Environmental Quality Act.

FISCAL IMPACT: The Housing Successor Agency Annual Report provides information on Fiscal Year 2024-25 activities and does not have any fiscal impact.

ATTACHMENT:

A. Housing Authority Resolution Approving a Housing Successor Agency Annual Report for Fiscal Year 2024-25
B. Housing Successor Annual Report for the Fiscal Year 2024-25

Page 3 of 3 ends

HOUSING AUTHORITY RESOLUTION NO.

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF AVALON

APPROVING A HOUSING SUCESSOR AGENCY ANNUAL REPORT FOR
FISCAL YEAR 2024-25
WHEREAS, City records reveal that the City adopted a resolution on or about February 2, 1983 creating the Housing Authority of the City of Avalon ("Housing Authority"), however it is unclear whether the Housing Authority continued to remain active; and WHEREAS, the City Council adopted Resolution No. 12-02 on January 30, 2012 declaring the need for the Housing Authority and reauthorizing it to transact business and exercise powers; and
WHEREAS, pursuant to Health and Safety Code section 34176, the City of Avalon ("City"), as the entity that authorized the creation of the dissolved Avalon Community Improvement Agency ("Agency"), elected not to retain the housing assets and functions previously performed by the Agency, and instead elected to transfer all rights, powers, assets, liabilities, duties and obligations associated with the housing activities of the Agency, excluding any amounts on deposit in the Low and Moderate Income Housing Fund, to the Housing Authority, as provided in Resolution No. 12-01 adopted on January 30, 2012; and WHEREAS, Section 34176.1 of the Health and Safety Code (H&SC) requires housing authorities to prepare an annual report describing its activities in the Low and Moderate Income Housing Asset Fund ("Housing Asset Fund") for the preceding fiscal year and submit it to the California Department of Housing and Community Development ("HCD") by December 31st of each year; and
WHEREAS, Housing Authority staff has prepared a Housing Successor Agency Annual Report for Fiscal Year 2024-25 ("Report"), attached hereto as Exhibit "A"; and WHEREAS, the Housing Authority desires to approve the Report and transmit it to HCD and post on its website.

NOW, THEREFORE, THE HOUSING AUTHORITY OF THE CITY OF AVALON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference.

Section 2. Approval of Housing Successor Agency Annual Report. The Housing Authority of the City of Avalon hereby approves the Housing Successor Agency Annual Report for Fiscal Year 2024-25, attached hereto as Exhibit "A," as required by the H&SC.

Section 3. Transmittal to Appropriate Agencies. The City Manager is hereby authorized and directed to transmit, by mail or electronic means, a copy of the Housing Successor Agency Annual Report to the California Department of Housing and Community Development, file a copy with the City Clerk, and post on the Housing Authority website.

Section 4. Technical Revisions. The City Manager is hereby authorized and directed to use his discretion to make any necessary technical revisions to the Housing Successor Agency Annual Report prior to submittal to the appropriate reviewing bodies.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Authority of the City of Avalon, on the 16th day of December, 2025, by the following vote:

AYES:

NOES:

ABSTAIN :

ABSENT:

Ann H. Marshall, Chair
ATTEST:

Gabrielle Morones, Secretary

EXHIBIT A

HOUSING AUTHORITY OF THE CITY OF AVALON

HOUSING SUCCESSOR AGENCY ANNUAL REPORT
FISCAL YEAR 2024-25

HOUSING SUCCESSOR ANNUAL REPORT
Avalon Housing Authority
Fiscal Year 2024-25

TABLE OF CONTENTS
INTRODUCTION ....................... .......... .... ........... .... ... ......... ........ .... .. ..... ....... ..... .. ..... ...... ... ....... ........ . 1 HOUSING SUCCESSOR REQUIREMENTS .. ........ .......... .. ................ ... ........... .......... ......................... 1 ASSETS TRANSFERRED TO HOUSING SUCCESSOR ........................ ..... .................... .. ....... .... ... .... 2 HOUSING ASSET FUND ACTIVITY ...... ... .... ... ....... ..... ....... ....... ... .... ..... ... .. ....... ... .... ... ... ......... ...... ... .. 3 EXPENDITURE LIMIT COMPLIANCE ... .. ........ ... .... ..... ... .. ... ........... ..... ....... ......... .... ....... .. ... ... ............ 4 SENIOR HOUSING LIMIT COMPLIANCE ........... ...... ............. ...... ... .. .. .... ............ .. .. .. ... ... ... .. ... .. .......... 5 DEPOSITS AND FUND BALANCE ... ...... ............................................................................................ 6 EXCESS SURPLUS ...... .............................. ............ .... ... .. ......... ........ .. ....... ..... .. ... .. ... ...... .. ........... ..... 7 TRANSFERS TO OTHER HOUSING SUCCESSORS ..................... ........ .... ... ....... .. .... ... ............ .. ..... .. 8 HOUSING SUCCESSOR PORTFOLIO ...... ... ..... .. .................. .. ....... ..... ... ... .. ... ... ......... ......... ............... 9 PROPERTY DESCRIPTIONS AND DISPOSITION STATUS .. .. ....................... ..... ...... .. ... ... .... .. .. .. ....... 9 LOANS RECEIVABLE AND DEFERRALS .......... .. ....... ... .... .... ...... .. ... ..................... ........ ..... .... ...... .. . 11 AFFORDABILITY AGREEMENTS ........................................ ..... ....... ... .... .. ... ... ... .. .. .. ....... .. ..... .. .. .. .... 11 HOMEOWNERSHIP UNIT INVENTORY .... ...... ... ..... ... ... .... ..... ......................... ... .. .. ........ .. .. ... .. ...... .. . 14 APPENDIX 1 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS ...... ... ........... ..... ........ 15 APPENDIX 2 - HOUSING ASSET TRANSFER FORM .. .... ....... ...... ............. ..... ......... ... ........ ..... .. ...... 16 APPENDIX 3 - HOUSING ASSET FUND EXPENDITURE REQUIREMENTS .... ....... .... .... .......... ... ..... 17

INTRODUCTION
The Avalon Housing Authority ("Housing Authority") is the Housing Successor Agency to the former Avalon Community Improvement Agency ("ACIA"). The Housing Authority is responsible for maintaining housing assets transferred from the former ACIA, and its main goal is to provide affordable housing for Avalon residents.

This Housing Successor Agency Annual Report ("Annual Report") contains information on Fiscal Year ("FY") 2024-25 finances and activities as required by Health and Safety Code ("HSC") Section 34176.1 (f).

This Annual Report details how the Housing Authority met all requirements for expenditures by income level since the beginning of the third five-year compliance period, which runs from July 1, 2024 through June 30, 2029.

The Annual Report is due to the California Department of Housing and Community Development ("HCD") by December 31 st annually and must be accompanied by an independent financial audit. The Housing Authority's audited financial statements will be posted on the City of Avalon's ("City") website when available.1 This report is an addendum to the Housing Authority Annual Report required by HSC Section 34328, which is submitted to HCD by October 1st annually.

HOUSING SUCCESSOR REQUIREMENTS
In the 2013-14 Legislative Session, Senate Bill ("SB") 341 and subsequent legislation enacted several requirements for housing successor agencies. Housing successors must comply with three major requirements pursuant to HSC Section 34176.1:

1. Expenditures and housing production are subject to income and age targets.

2. Housing successors may not accumulate an "excess surplus," or a high balance based on certain thresholds discussed later in this report.
1 This report was prepared based on unaudited financial statements that may differ from the final audited financial statements due to year-end accounting.

Avalon Housing Successor Annual Report 2024-25 1

3. Properties must be developed with affordable housing within five to ten years of being approved for transfer from the former redevelopment agency to the housing successor.

The requirements are designed to ensure that housing successors are actively utilizing former ACIA housing assets to produce affordable housing. Appendix 1 provides a detailed summary of the reporting requirements that are addressed in this Annual Report.

ASSETS TRANSFERRED TO HOUSING SUCCESSOR
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the ACIA were transferred to the Housing Authority. The Housing Authority prepared a Housing Asset Transfer Form ("HAT") that provided an inventory of all housing assets transferred from the ACIA to the Housing Authority. This included:

1. Real properties,

2. Affordable housing covenants ,

3. Loan receivables,

4. Income from ground leases and rental properties, and

5. Supplemental Educational Revenue Augmentation Fund ("SERAF") Loan.

All items on HAT were approved by the California Department of Finance ("DOF") on August 30, 2012.

DOF later asked the Successor Agency to revise the form , and the revised HAT was approved by DOF on December 15, 2014. A copy of the revised HAT is provided as Appendix 2.

It is important to distinguish that Housing Authority assets that were not transferred from the former ACIA, nor generated by, nor purchased with, assets from the former ACIA, are not subject to HSC Section 34176.1.

Avalon Housing Successor Annual Report 2024-25 2

HOUSING ASSET FUND ACTIVITY
Former ACIA assets, and the revenues generated by those assets, are maintained in a Low and Moderate Income Housing Asset Fund ("Housing Asset Fund").
2 Housing Asset Funds may be spent on:
• Administrative costs for operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o $200,000 per year adjusted for inflation, or
o 5% of the statutory value of real property owned by that housing successor and the value of loans and grants receivable from the HAT ("Portfolio").

HCD has not published the FY 2024-25 limit, therefore the City will be applying the FY 23-24 limit of $263,100. The Housing Successor will comply with the FY 2024-25 limit since administrative expenses were below $263, 100.
• Homeless prevention and rapid rehousing services up to $500,000 per year if the former ACIA did not have any outstanding housing inclusionary or replacement housing production requirements. The former ACIA had a surplus of affordable housing production units, and therefore the Housing Authority as Housing Successor can make this expenditure if it chooses and funding is available for such expenditures.
• Affordable housing development assisting households up to 80 percent of the Area Median Income ("AMI"), subject to specific income and age targets.

Five-Year Income Proportionality: If any Housing Asset Funds are spent on affordable housing development, it triggers a requirement to spend at least 30 percent of such expenses assisting extremely low-income households (30% AMI), and no more than 20 percent on low2 Fund 153. The Housing Asset Fund replaced the former ACIA's Low and Moderate Income Housing Fund.

Avalon Housing Successor Annual Report 2024-25 3
income households (between 60-80% AMI) per five-year compliance period. The current fiveyear compliance period runs from July 1, 2024 through June 30, 2029.

It is important to note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% AMI , as long as it spends 20 percent or less of the total expenditures during the five-year compliance period.

Ten-Year Age Proportionality: If more than 50% of the total aggregate number of rental units produced by the City, Housing Authority, or former ACIA during the past 10 years are restricted to seniors, the Housing Authority may not spend more Housing Asset Funds on senior rental housing.

Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.

EXPENDITURE LIMIT COMPLIANCE
The Housing Authority complied with all Housing Asset Fund spending restrictions in FY 2024-25, including five-year compliance period income targeting requirements:
3 • No administrative expenditures were made in FY 2024-25. • No homeless prevention or rapid rehousing expenses were made in FY 2024-25. • Affordable housing development-related expenditures totaling $512,31 1, all of which are expected to assist extremely low-income households. The expenditures were allocated to a project that is currently in the predevelopment stage (206 E. Whittley). The Housing Authority will 3 The Housing Asset Fund figures in this Annual Report are based on unaudited numbers that were available at the time this report was prepared. They might vary slightly from audited numbers once Avalon's annual audit is complete.

Ava/on Housing Successor Annual Report 2024-25 4
reconcile the expenditure allocations when final project unit allocations and costs have been determined.

Figure 1.
xpe d1tur L m1tat1on Compl nc
St 0.000 so
S 0.000
s 0.000 so
S 000
$200000
s no,ooo
so
The Housing Authority will ensure it continues to meet all expenditure requirements going forward , including throughout the current five-year compliance period of July 1, 2024 through June 30, 2029.

Failure to comply with the extremely low-income requirement in any five-year compliance period will result in the Housing Authority having to ensure that 50 percent of remaining funds be spent on extremely lowincome rental units until in compliance. Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in the Housing Authority not being able to expend any funds on these income categories until in compliance.

SENIOR HOUSING LIMIT COMPLIANCE
Pursuant to Health and Safety Code Section 34176.1 (b), a maximum of 50% of deed-restricted rental housing units assisted by the former Agency , Housing Authority , or City in the previous 10 years may be restricted to seniors. The Housing Authority, City, and former Agency assisted 10 deed-restricted Avalon Housing Successor Annual Report 2024-25 5
rental units in the last 1 0 years , none of which are restricted to seniors. Therefore, the Housing Authority complies with this requirement.

DEPOSITS AND FUND BALANCE
The Housing Authority deposited $21 ,323 into the Housing Asset Fund during FY 2024-25. ur 2
Ho sing Ass t Depost s Y 02 -
$1 , 173
150
• I er
20000
Revenue sources include:
• Interest income ($1 ,173)
• Ground lease revenue for the 238 & 311 Descanso properties ($150) and 309 & 313 Beacon property ($20,000)
Avalon Housing Successor Annual Report 2024-25 6
The Housing Asset Fund balance as of June 30, 2025 was $5,071,465. iva
l.l'f r Loans R
L as

EXCESS SURPLUS
$
Amount
,103,178
10,000
2 ,586
3,951 , 26
(281 , 58
3,732
5,071 ,465
The Housing Asset Fund may not accumulate an "excess surplus," or an unencumbered amount that exceeds the greater of $1 million, or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. Any excess surplus must be expended or encumbered within three fiscal years. If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year.

Table 2 shows the excess surplus calculation for FY 2024-25. The Housing Authority did not have an excess surplus in FY 2024-25.

Avalon Housing Successor Annual Report 2024-25 7
2022-23
11 ,013
R r
e

TRANSFERS TO OTHER HOUSING SUCCESSORS
-.• ... .:~ ·"·· ·.: ~- i- • __ -,
, ..&..c :-!:~:.. ~ ~-~: ... _ .; ._ ;:; ... ,.j
2023-24
1,5 ,166
(512,31 1)
(187. 89)
8 .1

1.000.000

77.223

1.000,000
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1 (c)(2).

Avalon Housing Successor Annual Report 2024-25 8

1. Expenditures and housing production are subject to income and age targets.

Avalon Housing Successor Annual Report 2024-25

HOUSING SUCCESSOR PORTFOLIO
The Housing Successor Portfolio includes five properties and one loan receivable transferred from the former ACIA. The Portfolio had a value of $4,371,426 as of FY 2024-25, as detailed in Table 3. t
313 Bcaco Street
238 0 oA
311
206
Sub
T otaJ Portf ol o VaJu
Amount
862,511
236,315
150,000
150,000
2,852,600
.251 .426
120,000
120.000
$4,371 ,426

PROPERTY DESCRIPTIONS AND DISPOSITION STATUS
The ACIA previously transferred seven real properties to the Housing Authority that were approved by DOF on the HAT in 2012. The Housing Authority sold two of the properties in FY 2013-14. The following is a description of each of the five remaining properties:
• 309 & 313 Beacon Street: This 14-unit senior housing complex is affordable to very low-income residents. The project was constructed in 2002 with a combination of USDA Section 515 funds, Low Income Housing Tax Credit ("LIHTC") financing , HOME funds, ACIA funds (for land purchase) and Federal Home Loan Bank funds . The Developer resyndicated the project in August Avalon Housing Successor Annual Report 2024-25 9
2021 . As part of the resyndication process, the ground lease was amended and extended from 2074 to 2077. In addition, the affordability covenant was extended through 2077. • 238 & 311 Descanso Avenue: These two single-family homes have 55-year affordable housing restrictive covenants that expire in 2051. The ACIA owned the land under the homes regulated by ground leases, which were transferred to the Housing Authority. They are both affordable to moderate income households through ground leases issued by the former ACIA. • 206 E. Whittley Avenue: This property contains a 4-unit apartment complex. The ACIA purchased the property in 2008 but was unable to pursue development due to the dissolution of redevelopment. The Authority is currently preparing to rehabilitate the existing 4 units and build an additional 6 new affordable housing units. The Authority intends to rent the 1 O units out to extremely low, very low, low and moderate-income households. The Authority undertook preconstruction and environmental remediation activity in FY 2021-22 and FY 2022-23 and released an RFP for related site preparation work to support the development of the 6 new planned units.

The Authority subsequently awarded a contract to a qualified vendor to complete the necessary site preparation work in FY 2023-24, which is expected to be complete in FY 2025-26.

HSC Code Section 34176(e) requires that all real properties acquired by the ACIA prior to February 1, 2012 and transferred to the Housing Authority be sold or developed for affordable housing purposes within five years from the date DOF approved the HAT. Avalon's original HAT was approved by DOF on August 30, 2012. DOF later asked the Successor Agency to revise the form to reflect ownership of 309 Beacon Street. The revised HAT was approved by DOF on December 15, 2014. Therefore, the original five-year deadline ended on August 30, 2017 for all the properties except 309 Beacon Street, which ended on December 15, 2019, and is already developed as affordable housing. On August 1, 2017 , the Housing Authority adopted Housing Authority Resolution 17-01 extending the period for development or disposition of Housing Authority properties transferred from the former ACIA to August 30, 2022, as permitted by law. As described above, the Housing Authority has developed or initiated development on all properties.

Avalon Housing Successor Annual Report 2024-25 10

LOANS RECEIVABLE AND DEFERRALS
Two loans receivable and one deferral were transferred on the HAT. One loan for $95,000 at 338 Triana Lane was paid off after dissolution.
4 The final payment towards the $1 million deferral was paid in FY 2019-20 in the amount of $25,959. The remaining loan is described below:
• First-Time Homebuyer Program Loan Receivable ($120,000): The former ACIA issued a $120,000 loan to a moderate-income homebuyer at 336 Triana Lane. The loan is due upon sale or within 30 years, whichever comes first. The loan does not accrue interest except in the event of default, in which case the interest rate increases to five percent. There is no monthly payment unless a mutually agreed upon payment schedule is made. It is anticipated that the loan will be refinanced at the end of the 30-year term or re-issued to a new borrower upon the sale of the properties.

AFFORDABILITY AGREEMENTS
The Housing Authority oversees six affordability agreements transferred from the former ACIA:
• 309 Beacon Street: This 14-unit senior housing complex is affordable to very low-income residents. The project was constructed in 2002 with a combination of USDA Section 515 funds, Low Income Housing Tax Credit ("LIHTC") financing, HOME funds, ACIA funds (for land purchase) and Federal Home Loan Bank funds. The Developer resyndicated the project in August 2021. As part of the resyndication process between 309 Beacon St. and the noncontiguous Bird Park, the ground lease was amended and extended from 2074 to 2077 and the affordability covenant was extended 28 years and will expire in 2077. In addition, the affordability mix restricted 18 units (of the 36 between Beacon St. and Bird Park) to households with incomes less than 50% and 18 units to households with incomes less than 60% AMI based on TCAC limits. The City of Avalon adopted Resolution No. HA 20-01 in March 2020 which, at a minimum, 4 See Affordability Agreement section for more details on the 338 Triana Lane loan payoff.

Ava/on Housing Successor Annual Report 2024-25 11
requires the units to be restricted to rental households earning no more than 80% of AMI based on limits established by the State's Department of Housing and Community Development. • Bird Park: This 24-unit multi-family property is affordable to very low-income residents. It was constructed in 2002 with a combination of USDA Section 515 .funds, LIHTC financing , HOME funds, and ACIA financing . The ACIA funded roads and infrastructure for the project. As part of the resyndication process between Bird Park and the non-contiguous 309 Beacon St. , the affordability covenant will be extended 28 years and will expire in 2077. In addition, the affordability mix restricted 18 units (of the 36 between Beacon St. and Bird Park) to households with incomes less than 50% and 18 units to households with incomes less than 60% AMI based on TCAC limits.
• Eucalyptus Hill Gardens: This 80-unit complex is subsidized by HUD and has 40 units restricted to very low-income households (24 extremely low and 16 very low income). The remaining 40 units are market-rate. The project was constructed in 1992 with LIHTC funds, ACIA funds , and Rental Housing Construction Program loans. It has a 55-year affordability covenant that expires in 2047.
• Tremont Street Apartments: This 63-unit property had an agreement between the City and the California Housing Financing Agency ("CalHFA") that restricted affordability at this property through August 18, 2016. The ACIA affordable housing covenants have since expired on the Tremont Street Apartments. However, the project is also subsidized by CalHFA and Section 8 Project Based Vouchers . The CalHFA promissory note was repaid by Hamilton Cove many years ago, but the Section 8 Project Based Vouchers were renewed in 2013 and will remain in effect until April 30, 2033 for 62 units restricted to low income households. • 238 & 311 Descanso Avenue: These two single-family homes have 55-year restrictive covenants that expire in 2051 . They are both affordable to moderate income households through ground leases issued by the former ACIA.
• 336 Triana Lane: This single-family home has a 45-year restrictive covenant that expires in 2055.

A moderate income household received assistance through the First-Time Homebuyer Down Payment Assistance Program.

Ava/on Housing Successor Annual Report 2024-25 12
One additional affordability agreement was transferred on the HAT at 338 Triana Lane for a First-Time Homebuyer Down Payment Assistance Program loan that was paid off after dissolution. The Housing Authority issued a new loan at the property that is maintained by the Housing Authority but is not a housing successor asset, as it was not funded by Housing Asset Funds.

Avalon Housing Successor Annual Report 2024-25 13

HOMEOWNERSHIP UNIT INVENTORY
Table 4 presents an inventory of homeownership units assisted by the former ACIA that require restrictions, covenants, or an adopted program that protects former ACIA Low and Moderate Income Housing Fund investments. One of the units, 338 Triana Lane, was assisted by the ACIA prior to dissolution with a $95,000 loan that was paid off after dissolution. A new $192,000 loan was issued at this property in December 2014 by the Housing Authority using housing bond proceeds. The loan has been included as part of the homeownership inventory to reflect the protection of the former ACIA's investment, however it is considered a Housing Authority asset and not a housing successor asset because Housing Asset Funds were not used to fund the new loan. 311
336 Tr
338 T r
Ava/on Housing Successor Annual Report 2024-25
Cov nant
9/2 /
6/23/59
n Program
F B
F HB
FT B
FT B
14 APPENDIX 1 - HOUSING SUCCESSOR ANNUAL REPORT

REQUIREMENTS
Housing Asset Fund
Revenues & Expenditures
Total amount deposited in the
Housing Asset Fund for the fiscal
year
Amount of deposits funded by a
Recognized Obligation Payment
Schedule ("ROPS")
Statement of balance at the
close of the fiscal year
Description of Expenditures for
the fiscal year, broken out as
follows:
• Homeless prevention and
rapid rehousing
• Administrative and
monitoring
• Housing development
expenses by income level
assisted
Description of any transfers to
another housing successor for a
joint project
Other Assets and Active
Projects
Description of any project(s)
funded through the ROPS
Update on property
disposition efforts (note that
housing successors may only
hold property for up to five
years, unless it is already
developed with affordable
housing)
Other "portfolio" balances,
including:
• Statutory value of any
real property either
transferred from the
former ACIA or
purchased by the
Housing Asset Fund
• Value of loans and
grants receivable
Inventory of homeownership
units assisted by the former
ACIA or the housing
successor that are subject to
covenants or restrictions or to
an adopted program that
protects the former ACIA's
investment of monies from the
Low and Moderate Income
Housing Fund
Avalon Housing Successor Annual Report 2024-25
Obligations & Proportionality
Description of any outstanding
production obligations of the
former ACIA that were inherited
by the Housing Authority
Compliance with proportionality
requirements (income group
targets), which must be upheld
on a five year cycle
Percentage of deed-restricted
rental housing restricted to
seniors and assisted by the
former ACIA, the Housing
Authority, or the City within the
past ten years compared to the
total number of units assisted by
any of those three agencies
Amount of any excess surplus,
and , if any, the plan for
eliminating it
15 APPENDIX 2 - HOUSING ASSET TRANSFER FORM
The Housing Asset Transfer Form is attached as a separate document.

Avalon Housing Successor Annual Report 2024-25 16
Administration $263,100
and maximum for
Compliance FY 2024-25 in
Monitoring Avalon (most
available limit
as published
by HCD)
Homeless
Prevention
and
Rapid
Rehousing
Solutions
Affordable
Housing
Development
$500,000
maximum per
fiscal year
No spending
limit, but must
comply with
income and
age targets
Administrative activities such as:
• Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration
• Compliance monitoring to ensure compliance with affordable housing and loan agreements
• Property maintenance at Housing Successor-owned
properties
Capped at $200,000 adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT ("Portfolio"), whichever is greater.

Services for individuals and families who are homeless or would be homeless but for this assistance, including:
• Contributions toward the construction of local or regional homeless shelters
• Housing relocation and stabilization services including housing search, mediation, or outreach to property owners • Short-term or medium-term rental assistance
• Security or utility deposits
• Utility payments
• Moving cost assistance
• Credit repair
• Case management
• Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.
"Development" includes:
• New construction
• Acquisition and rehabilitation
• Substantial rehabilitation
• Acquisition of long-term affordability covenants on multifamily units
• Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years
Avalon Housing Successor Annual Report 2024-25 17
Income
Targets
Age Targets
Every five years (currently FY 2021-2025), Housing Asset Funds must meet income targets:
• At least 30% on extremely low income rental households (up to 30% AMI or "Area Median Income")
• No more than 20% on low income households (60-80% AMI) Moderate and above moderate income households may not be assisted (above 80% AMI).

Failure to comply with the extremely low income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance.

Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income
categories until in compliance.

For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.

If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.

Avalon Housing Successor Annual Report 2024-25 18

CITY OF AVALON CITY COUNCIL ACTING AS

THE SUCCESSOR AGENCY TO THE AVALON COMMUNITY IMPROVEMENT AGENCY MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

December 16, 2025 AGENDA ITEM: 1J
Finance CITY MANAGER:

Matthew Baker, Finance Director
Alex Lawrence, Consultant, RSG, Inc.

Recognized Obligation Payment Schedule (ROPS) 26-27 and Successor Agency Administrative Budget for Fiscal Year 2026-27 RECOMMENDED ACTION(S): Adopt "A Resolution of the Successor Agency to the Avalon Community Improvement Agency Approving a Recognized Obligation Payment Schedule 26-27 and Successor Agency Administrative Budget for Fiscal Year 2026-27."

BACKGROUND
As a result of the dissolution of redevelopment, the Successor Agency was created to administer the enforceable obligations and unwind the affairs of the former Avalon Community Improvement Agency ("Former Agency"). As part of that process, the Successor Agency must annually adopt the Recognized Obligation Payment Schedule (''ROPS"), as required by Dissolution Law.

AVALON ROPS 26-27
A Recognized Obligation Payment Schedule for the 2026-27 fiscal period ("ROPS 26-27"), covering the period of July 1, 2026 to June 30, 2027, is required to be submitted to the State Department of Finance ("DOF") by February 1, 2026. If the ROPS is not submitted by that deadline, the City of Avalon (as the City and not as the Successor Agency) will be subject to a civil penalty of $10,000 per day for each day it is late.

DOF provided the Successor Agency with a partially completed ROPS form to standardize the form and make it consistent with the automated tracking system. Commencing October 1, 2018 and annually thereafter, the differences between actual payments and past estimated and approved obligations on the ROPS shall be submitted by the Successor Agency to the Los Angeles County Auditor-Controller for review and adjustment to future distributions through a Prior Period Adjustment ("PPA") form . The County Auditor-Controller has until February 1 to submit the reviewed PPA to DOF for DOF approval.

A PPA form for ROPS 23-24 was submitted by Avalon Successor Agency staff to the County Auditor-Controller before the October 1, 2025 deadline. Because the ROPS is an estimate of the funds needed to pay enforceable obligations, often times the requested amounts vary from the actual expenditure. During the ROPS 23-24 period, the PPA showed that the Avalon Successor Agency spent $1 ,105 less Redevelopment Property Tax Rust Funds ("RPTTF") than requested on fiscal agent fees. The unspent $1,105 will likely be deducted from the Fiscal Year 2026-27 RPTTF distribution.

Page 1 of 3 ends

Enforceable Obligations
The enforceable obligations on the ROPS remain unchanged from prior periods. The ROPS 26- 27 requests RPTTF in the amount of $1,937,108 to fund the following items:
• Debt service payments on the 2003 Tax Allocation Bonds, Series A; • Debt service payments on the 2015 Tax Allocation Refunding Bonds, Series 2015 A and 2015B;
• Bond fiscal agent and disclosure fees;
• Administrative cost allowance.

OOF Review
Upon submittal of an Oversight Board-approved ROPS, DOF has 45 days to make its determination. The RPTTF distribution dates for the ROPS 26-27 are on or about June 1, 2026 and January 2, 2027.

SUCCESSOR AGENCY ADMINISTRATIVE BUDGET (FISCAL YEAR 26-27) California Health and Safety Code ("HSC") Section 341770) requires the Successor Agency to prepare an Administrative Budget and submit it to the Oversight Board for approval. Pursuant to HSC Section 34171 (b), the administrative allowance is limited to the greater of $250,000 per year, or three percent (3%) of the RPTTF distributed in the prior fiscal year, excluding the administrative allowance and any City/Former Agency loan repayments.

Staff has completed a projection funding needed for the 2026-27 fiscal year and is recommending that the Successor Agency approve an annual administrative budget of $150,000, which is split evenly between the two six-month ROPS periods, and direct staff to submit the budget to the Oversight Board for approval. Administrative activities for the 2026-27 fiscal year include preparation and legal review of the ROPS, PPA, staff reports and resolutions, payment of enforceable obligations, attendance at Successor Agency and Oversight Board meetings, and other activities detailed in Exhibit B attached to the accompanying resolution .

LAST AND FINAL ROPS
Beginning January 1, 2016, successor agencies may submit a Last and Final ROPS for approval by the oversight board and DOF if all of the following conditions are met:

1. Remaining debt includes only administrative costs and enforceable obligations with set payment schedules, such as debt service, loan agreements, and contracts;

2. All remaining obligations have been previously listed on a ROPS and approved by DOF; and

3. The successor agency has no outstanding or unresolved litigation.

The Successor Agency meets these conditions. Once DOF approves a successor agency's Last and Final ROPS, the successor agency may submit up to two requests to amend it. Avalon is currently considering impacts of initiating a Last and Final ROPS in consultation with RSG, Inc.

Page 2 of 3 ends

OVERSIGHT BOARD CONSOLIDATION
Oversight boards have broad authority to set administrative budgets, approve the transfer of properties pursuant to a long-range property management plan, approve enforceable obligations, and otherwise direct the successor agency to perform activities to wind down the former redevelopment agencies.

The Dissolution Act (specifically HSC Section 34179U-q)) provides that local oversight boards are succeeded by a single Countywide oversight board (with the exception of Los Angeles County, where 5 oversight boards have been created), commencing on July 1, 2018. The ROPS and Administrative Budget prepared by the Successor Agency for FY 2026-27 will be reviewed by the District 4 Los Angeles County Oversight Board .

ENVIRONMENTAL REVIEW
The action taken by the Successor Agency to approve the ROPS 26-27 and the Successor Agency Administrative Budget does not commit the Successor Agency to any actions that may have a significant effect on the environment. As a result, such actions do not constitute projects subject to the requirements of the California Environmental Quality Act.

FISCAL IMPACT
Approval of the ROPS and Administrative Budget is necessary for the Successor Agency to continue administrative operations and make payments for debt service, contracts, and other enforceable obligations. By not adopting the ROPS and Administrative Budget, the Successor Agency would risk defaulting on debt agreements and not being able to fund certain expenses and operations, which would also impact the City's General Fund. Failure to submit an Oversight Board-approved ROPS to DOF by February 1, 2026 will also result in a $10,000 per day penalty assessed against the City for each day the ROPS is late.

Attachment:

A. Successor Agency Resolution Approving the ROPS 26-27 and the FY 2026-27 Successor Agency Administrative Budget

Page 3 of 3 ends

SUCCESSOR AGENCY RESOLUTION NO.

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE AVALON

COMMUNITY IMPROVEMENT AGENCY APPROVING A RECOGNIZED
OBLIGATION PAYMENT SCHEDULE 26-27 AND SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2026-27
WHEREAS, pursuant to Assembly Bill 26 of the First Extraordinary Session of the 2011 - 2012 Legislative Session ("ABX1 26") (Chapter 5, Statutes of 2011 ), the Avalon Community Improvement Agency was effectively dissolved as of February 1, 2012; and WHEREAS, pursuant to ABX1 26, the City Council of the City of Avalon serves as the Successor Agency to the Avalon Community Improvement Agency ("Successor Agency"); and WHEREAS, pursuant to Health and Safety Code Section 34177, the Successor Agency is required to prepare a Recognized Obligation Payment Schedule ("ROPS") in a manner prescribed by the California Department of Finance ("DOF"), and submit the ROPS to an oversight board, the Los Angeles County Auditor-Controller, the State Controller's Office, and DOF for review and approval; and
WHEREAS, pursuant to Health and Safety Code Section 34179U), in every California county there shall be only one oversight board that is staffed by the county's auditor-controller, with the exception of Los Angeles County that has five oversight boards, each a consolidated board with one each for the five supervisorial districts in the County of Los Angeles ; and WHEREAS, the applicable consolidated oversight board overseeing this Successor Agency is called the Consolidated Oversight Board Fourth District of Los Angeles County ("Fourth District Oversight Board"); and
WHEREAS, Assembly Bill 1484 ("AB 1484") (Chapter 26, Statutes of 2012) established new procedural requirements for the preparation, review, and approval of ROPS by the Successor Agency, including clarifications regarding "enforceable obligations"; and WHEREAS, Senate Bill 107 ("SB 107") (Chapter 325, Statutes of 2015) established revised procedural requirements for the preparation, review and approval of ROPS by the Successor Agency, including modifying the ROPS process to an annual ROPS beginning with FY 2016-17; and
WHEREAS, Exhibit "A" to this resolution establishes a ROPS for the fiscal year beginning July 1, 2026 and ending June 30, 2027 ("ROPS 26-27"), in a manner consistent with that prescribed by DOF; and
WHEREAS, Health and Safety Code Section 34177U) requires the Successor Agency to prepare and submit a Successor Agency Administrative Budget ("Administrative Budget") for approval by an oversight board; and
WHEREAS, the Successor Agency will be allocated an "Administrative Cost Allowance," as defined in Health and Safety Code Section 34171 (b); and WHEREAS, Exhibit "B'' to this resolution presents an Administrative Budget for fiscal year 2026-27, which provides the estimated amounts for Successor Agency administrative costs for the upcoming six-month fiscal periods of July 1, 2026 - December 31 , 2026, and January 1, 2027 - June 30, 2027 in the total amount of $150,000, which is divided evenly between the two six-month fiscal periods of the fiscal year.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE AVALON COMMUNITY IMPROVEMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference.

Section 2. Approval of ROPS. The Successor Agency hereby approves the Recognized Obligation Payment Schedule 26-27, in substantially the form attached hereto as Exhibit "A," as required by ABX1 26, enacted during the 2011 legislative year, AB 1484, enacted during the 2012 legislative year, and SB 107, enacted during the 2015 legislative year.

Section 3. Approval of Administrative Budget. The Successor Agency hereby approves the Successor Agency Administrative Budget for Fiscal Year 2026-27, in substantially the form attached hereto as Exhibit "B," as required by ABX1 26, enacted during the 2011 legislative year, AB 1484, enacted during the 2012 legislative year, and SB 107, enacted during the 2015 legislative year.

Section 4. Transmittal to Appropriate Agencies. The City Manager, on behalf of the Successor Agency, is hereby authorized and directed to transmit a copy of the ROPS to the Fourth District Oversight Board, and upon approval by the Fourth District Oversight Board submit the approved ROPS to the Los Angeles County Auditor-Controller, the State Department of Finance and the State Controller's Office, and post a copy on the Successor Agency's website, as prescribed by statute. The City Manager is additionally authorized and directed to transmit a copy of the Administrative Budget to the Fourth District Oversight Board for approval.

Section 5. Technical Revisions. The City Manager is hereby authorized and directed to use their discretion to make any necessary technical revisions to the ROPS and Administrative Budget prior to submittal to the appropriate reviewing bodies.

PASSED AND ADOPTED at a regular meeting of the Successor Agency to the Avalon Community Improvement Agency, on the 16th day of December, 2025, by the following vote:

AYES:

NOES:

ABSTAIN :

ABSENT:

Anni Marshall, Chair
ATTEST:

Gabrielle Morones, Agency Secretary
EXHIBIT "A"

RECOGNIZED OBLIGATION PAYMENT SCHEDULE
JULY 1, 2026 -JUNE 30, 2027
Recognized Obligation Payment Scehdule (ROPS 26-27) - Summary Filed for the July 1, 2026 through June 30, 2027 Period Successor Agency: Avalon
County: Los An_g_e les
Current Period Requested Funding for Enforceable Obligationsj_ROPS Detail) A Enforceable Obligations Funded as Follows (B+C+D):
8 Bond Proceeds
C Reserve Balance
D Other Funds
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G):

F RPTTF
G Administrative RPTTF
H Current Period Enforceable Obligations (A+E):

Certification of Oversight Board Chairman:

Pursuant to Section 34177 (o) of the Health and Safety Code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency.

Signature Signature
26-27 A Total
(July - December)
$
$ 1,607,191
$ 1,532,191 $ 75,000
$ 1,607,191
Title
Title
$ $
$ $
$
26-278 Total
(January - June)
329,916
254,916
75,000
329,916
ROPS 26-27 Total
$
$ 1,937,108
$ 1,787,108 $ 150,000 $ 1,937,108

A B C D E F G
Contract/ Con11acU
Agreement Agret:menl
Proiect Name/Oebl E11ecubon Term1na!1on
Item • Obl1 ation :Ob11 al1onTun Date Oat, P-ee Oescnnbon/Pro eel Scone 2003 Tax AUocallon Bonds Issued 1211512003 9/1/2034 US Bank BonM is.sued 10 lund nonBonds Series A On or Before National hoVS1ng projects 12/31110 Assoc1allon
1 Fiscal Agent Fees i'"' 12/1512003 6130/2035 US Bank Fees rorfiscal agel'lt Nallonal SefVK:e$ 3 Auoc1at1on
Conbnu1ng Bond I''" 1211512003 6/30/2036 HaueU & Co Contmumg disclosure Disclosure and Bond Advisors reporting and bond Arbitrage ancllor US arb1tra~ 1e(fJltements tor
Bonk 2003 and 2015 Tax
16 Altocanon Bonds
SUccesso1 A~ Adm1n Costs 2/1/2012 6/3"'2036 Employees ol All Adm1mstJat1ve Costs Successor adm1ms11atrve/operallonal Agency. Legal costs of the Succes.sor
Counsel Agency mcludmg staffing,
ConMJltants ove1head legal counsel
VarsousOth« financial consult1ng Vendors propetty maintenance "'
?O
2015Tax Allocanon Bonds Ir.sued 6/3012015 9/1'2033 U.S. Bani( Bonds issued to fund Refundmg Bonds On Of Before Nallonal el1gibleredevelopm11nl Senes 2015A 12/31110 Auoc,a:ion pro,ec3
25 2015 Tat Allocanon Refunding 6/30/2015 9/1/2033 US Bank Bonds ,ssued 10 fund Refunding Bonds Bonds Issued Nabonal e,l1g1blerede-velopment Senes 20158 After6/27/12 AssocIabon proJects
2'I
Avalon RK:ognlzed Obligation Payment Schedule (ROPS 26-271 • ROPS Detail July I, 2026 through JUl\4! 30, 2027
(Report Amounts In \.\!hole Dollars)
H I J K L I M N 0
Tola! "8-Z7A ··•· - December
Outstanding Fund Sources
Debtor ROPS 26-27 Bond Reserve Other
ProectArea Obh allon Retired Total Proceeds Balance Funds RPTTF S 17 204 364 5 19 7 108 S • S I 532191 Communrty
Improvement "
ProJectArea
1932120 ' 67 320 33660 Community " I I lmpro·,ement ProectArea 54 .000 ' 6 000 6 000 Community N i
Improvement
ProiectArea

36.000 • 4 000 Community N
lmpfovement
ProJeclArea
I 500000 ... 150000
Community N
Improvement
ProJeclAtea
9 784.569 it 1221 713 1 074669
Community N
Improvement
ProiectArea
3897.575 S 4-96 075 417 863
p 0 R s T u V w
26,.27B JM\uarv - June
Fund Sourcn
Adm1n 26-27A Bond Reserve Othet Adm•n 26-278
RPTTF Total P1ocee~ Balance Funds RPTTF RPTTF Total
s 75000 S 1.507191 S • • 5254916 s 75.000 S J 9916
' 11860 33660 ' 33860
• 6.000 •
• 4 000 • •ooo

75.000 1 75 000 S 75000 S .. -.
.'l 1074AA9 147 044 !'- 1470tl4
• 417 85"\ 70213 < 7021"\
Avalon Recognized Obligation Payment Schedule (ROPS 26-27) - Report of Cash Balances July 1, 2023 through June 30, 2024
(Report Amounts in Whole DoUars)
Pursuant to Health and Safety Code section 34177 (I), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet.

A B C D E F G H
Fund Sources
Bond Proceeds Reserve Balance Other Funds RPTTF
Prior ROPS RPTTF
and Reserve Rent, Non-Admin
ROPS 23-24 Cash Balances Bonds issued on or Bonds issued on or Balances retained for Grants, and (07/01/23 - 06/30/24) before 12/3 1/10 after 01 /01 /11 future period(s) Interest, etc. Admin Comments 1 Beginning Available Cash Balance (Actual 07/01 /23) F: $28,142 reclassed from other funds in 23-24.

RPTTF amount should exclude "A" period distribution amount Also includes $138 in other funds (from 21-22 analysis) and $1 ,113 (from 22-23 analysis).

G: 20-21 PPA ($800) retained for 23-24 plus 21-22
PPA retained for 24-25 ($1 ,850) plus 22-23 PPA
29 ,255 3,705 retained for 25-26 ($1 ,055)
2 Revenue/Income (Actual 06/30/24)
RPTTF amount should tie to the ROPS 23-24 total distribution from the Countv Auditor-Controller 16,413 2,192,435
3 Expenditures for ROPS 23-24 Enforceable Obligations
(Actual 06/30/24)

28.142 2,192.130
4 Retention of Available Cash Balance (Actual 06/30/24) F: No fu nds reclassed in 24-25 or 25-26 RPTTF amount retained should only include the amounts G: 21-22 PPA retained for 24-25 ($1 ,850) and 22- distributed as reserve for future period(s) 2,905 23 PPA retained for 25-26 ($ 1,055) 5 ROPS 23-24 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 23-24 PPA
form submitted to the CAC No entry required
1 105
6 Ending Actual Available Cash Balance (06/30/24)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$ 0 $ 0 $ 0 $ 17,526 $ 0
Avalon Recognized Obligation Payment Schedule (ROPS 26-27) - Notes July 1, 2026 through June 30, 2027 Item# Notes/Comments
EXHIBIT "B"

SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
FISCAL YEAR 2026-27

SUCCESSOR AGENCY TO THE AVALON COMMUNITY IMPROVEMENT AGENCY

ANNUAL & SIX-MONTH ADMINISTRATIVE BUDGETS
FISCAL YEAR 2026-27
ANNUAL JUL-DEC JAN· JUN
Expense category FY 2026-27 2026 2027 Description
Personnel Expenses
City Manager (10%) $ 11,150 $ 5,575 $ 5,575 City Manager's Office • Provide direction to staff and As sistant City Manager {10%) $ 11,150 $ 5,575 $ 5,575 consultants as needed; reviews and oversees SA administration Administrative Analyst (10%) $ 11,150 $ 5,575 $ 5,575 and annual ROPS deliverables.

Finance Department · Process payment of enforceable
Finance Director (30%) $ 33,450 $ 16,725 $ 16,725 obligations; maintain documentation of SA records; coordinate with consultants to answer questions and provide
documentation as needed for reporting preparation and as requested by the Oversight Board, County Auditor-Controller, Account Technician (40%) $ 44,600 $ 22,300 $ 22,300 and DOF; administration and implementation of SA wind-down activities , Last and Final ROPS preparation.

Personnel Costs Subtotal $ 111,500 $ 55,750 $ 55,750
Service Expenses
Prepare ROPS, PPA, staff reports and resolutions for SA and OB; coordinate and answer questions for Oversight Board, County Professional Services (RSG $ 25,000 $ 12,500 $ 12,500 Auditor-Controller, and DOF; monitor and project ca sh flow to Contract) ensure sufficients revenues for obligations and inform SA staff or expected revenues ; Last and Final ROPS preparation; other SA services as needed.

Accounting and Auditing $ 5,500 $ 2,750 $ 2,750 Audits and other financial services as needed.

Legal Services $ 7,000 $ 3,500 $ 3,500 Provide genera I legal services as needed, review staff reports and resolutions, other legal services as needed.

Overhead & Department $ 1,000 $ 500 $ 500 Office overhead, supplies, trainings, conferences, other SA Expenses expenses.

Service Costs Subtotal $ 38,500 $ 19,250 $ 19,250
Total Expenses $ 150,000 $ 75,000 $ 75,000
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
December 16, 2025
Finance
Matthew Baker, Finance Director
AGENDA ITEM: __ 1 __
CITY MANAGER: DM,l'\_
Fiscal Year 2025-2026 Miscellaneous Fee Schedule Update RECOMMENDED ACTION(S): 1. Hear a presentation regarding the Miscellaneous Fee Schedule. 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing . 4.

If consensus, adopt the updated fee schedule as proposed.

REPORT SUMMARY: The City charges fees for miscellaneous public services, use of City facilities and equipment rental and other activities. User fees are assessed and collected for City services and programs provided by various departments. These are services that convey a benefit, grant a privilege, provide for review and enforcement of regulatory activities, enforce laws, or are a condition of development. Under State law, cities may charge fees to recoup the direct and indirect costs related to the provision of user services. Each year, the City reviews its fees to establish new fees, modify existing fees, and eliminate fees that are no longer required to ensure that City fees are in-line with the costs incurred to provide them .

City Staff performed an analysis of the administrative costs associated with the regulation of the City's short-term rentals, permits, and licenses as discussed at the September 2, 2025 City Council Meeting. Based on this analysis, City Staff recommends establishing a new administrative fee of $250 to be assessed on all licensed short-term rental businesses (e.g.

Grandfathered , Conditional Use Permits (CUP), and Transient Rental Licenses (TRL)) to directly recoup for the costs associated with the monitoring of short-term rentals and the enforcement of related transient rental ordinance requirements . Costs to be recouped through this new administrative fee include a portion of the City's planning services contract, software costs for the monitoring of rental activity and 24 hour compliance hotline, as well as a portion of Finance, Code Enforcement, and Planning's staff time directly spent on enforcement-related activities.

This fee will be assessed with the annual business license in addition to the existing administrative fee of $41 and related business license tax of $12.50.

GOAL ALIGNMENT: City costs that convey a benefit or grant a privilege to an individual are recouped by the users of the service.

FISCAL IMPACTS: Staff estimates that the new Short Term Rental License administrative fee, if adopted as proposed, should generate approximately $100,000 in General Fund revenues.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The costs of special services will not be fully funded through fees paid by the users of those services. The unfunded portion of user services would then be subsidized by general tax revenues and/or available fund balances .

FOLLOW UP ACTION: Adopt the attached resolution establishing city rates and fees for services .

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:
• Resolution
• Exhibit A - Proposed Updated Miscellaneous Fee Schedule FY25-26 RESOLUTION NO. ----

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF AVALON SETTING FEES FOR SERVICES, FACILITIES
AND ACTIVITIES OF THE CITY OF AVALON FOR FISCAL YEAR 2025-26 WHEREAS, Pursuant to a Public Hearing held on December 16, 2025, the City Council considered the recommendations of staff regarding the appropriate fees for permits, approvals, services, activities and other user services; and
WHEREAS, state law allows cities and other local government agencies to recoup the full cost of user services; and
WHEREAS, most city fees were previously adjusted effective July 1, 2024; and WHEREAS, the Avalon Municipal Code provides that all of the fees , charges and costs listed in "Exhibit A" attached hereto and incorporated by this reference shall be set by resolution of the City Council; and
WHEREAS, the fees, charges and costs listed in "Exhibit A" have been available for public inspection for at least 14 days prior to the date of the public hearing; NOW, THEREFORE, the City Council of the City of Avalon , State of California, does determine, find and resolve as follows :

Section 1: The City Council hereby finds that the fees set forth in "Exhibit A" Miscellaneous Fee Schedule Fiscal Year 2025-26 represent a reasonable estimate of the cost of providing the services, activities and/or facilities for which fees are charged .

Section 2: The City Council hereby adopts the fees for City services, activities and/or facilities as set forth in "Exhibit A" attached hereto and made a part hereof.

Section 3: The planning fees set forth in "Exhibit A" related to development approvals including filing , accepting, reviewing , approving, or issuing an application, permit, or entitlement shall be effective 60 days following the adoption of this Resolution pursuant to Government Code, section 66017(a); all other fees shall be effective immediately upon adoption of this Resolution.

PASSED, APPROVED AND ADOPTED by the City of Avalon , State of California this 16th day of December, 2025, by the following vote:
65059 00000\444 70208 I
AYES:

NOES:

ABSENT:

ABSTAIN :

ATTEST:

I, hereby certify, that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Avalon this 16th day of December, 2025.

Ann H. Marshall, Mayor
Gabrielle Morones, City Clerk
65059.00000\44470208 .1

PROPOSED MISCELLANEOUS

FEE SCHEDULE
FY2025-26
Proposed December 16, 2025
Table of Contents
Section Department Page
I General Administration 1
II Code Enforcement 2
Ill Vehicles 4
IV Cemetery 5
V Fire 6
VI Harbor 7
VII Community Services 9
VIII Facility Rentals 10
IX Use of Manpower and Equipment 11
X Transit 12
XI Planning 13
XII Public Works 18

CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION I - GENERAL ADMINISTRATION
Administrative Permits
Amplified Music Application
Noise Ordinance Variance
Outdoor Dining (October - April)
Outdoor Dining (May - September)
Bicycle License I Replacement
Legal and Professional Fees
Late Payment Fee (unless stated elsewhere)
Late Payment Interest on Past Due Balance
Transportation Permit
Transportation Permit Renewal
Encroachment Permit
Newspaper Rack Pennit
Appeal to Hearing Officer
Appeal to City Council
Film Location Pennits
Application Fee
Ten or fewer employees
More than ten employees
Still Photography Penni!
Business License Program Collection Fee
TOTAL Business License Collection Fee
'" ' C
UNT FY 26
'
Each 292
Each 292
Per Day 82
Per Month 2475
Each FREE
Cost+ 20%
Each 10% (min $25)
Monthly 0.50%
Each 292
Each 77
Each 292
Each 292
Each 292
Each 488
Each 155
Each 283
Each 378
Day 132
Each 41
Bus. License. Collection Fee is set by resolution. Sec. 3-1.112 of the Municipal Code and is the fee for processing the Business License Tax
Per SB1186 $1 ($4 through 1213112023) for Division of State Architect (DSA) for Certified Each 4 Access Specialist Short Tenn Rental License Administrative Fee Each 250
Business License Tax is on pg 3.109 Sec. 3-1 .202 of the Municipal Code and can only be changed by an ordinance Returned Check
Returned Check Each 30
Each Returned Check after first offense Each 40
Notary Fees
Acknowledgements Each 15
Jurats per individual taking oath or affinnation and certificate Each 15 Depositions Each 30
Oath Each 7
Certificate Each 7
Certified Copies of Power of Attorney Each 15
Copies of Journal Entry Each 0.30
Other Fees
Copy Fee Each 0.25
Lamination Fee Each 2
Commuter Card Replacement Each 15
Fats, Oils and Grease (FOG) Program
Fats, Oils and Grease Permit Fee Each 434
Inspection Fee Each 126
Re-Inspection Fee Each 191
Replacement FOG Binder Each 50
Replacement Best Management Practice Poster Each 20
2 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION II - CODE ENFORCEMENT
Parking Enforcement Fines
AMC §4-4.1002 Parking on Private Property
-
-
AMC §4-4.1004 (a) Use of Streets for Storage of Vehicles or Trailers (72 hr) ,:1
AMC §4-4.1004 (c) Use of Streets for Storage of Vehicles or Trailers (72 hr) - Removal AMC §4-4.1005 Parking Adjacent to Schools
AMC §4-4.1006 Vehicle Blocking Traffic
AMC §4-4.1007 Temporary No Parking
AMC §4-4.1102 (a)(1) No Parking
AMC §4-4.1102 (a)(2) Commercial Loading Only
AMC §4-4.1102 (a)(3) Passenger Loading Only
AMC §4-4.1102 (a)(4) Short Tenn Parking Only
AMC §4-4.1102 (a)(5) Taxi Parking Only
AMC §4-4.1102 (a)(6) Autoette/Motorcycle Only Parking
AMC §4-4.1106 No Parking Alleys
AMC §4-4.1203 Angled Parking - No Microcars
AMC §4-4.1202 Parking Space Marking
AMC §4-4.1404 Limited Use Streets - Pedestrians Only
AMC §4-4.1407 Vehicle Leaking Fluid
AMC §4-4.1501 One-Way Street
AMC §4-4.1702 Cijy Vehicle Pennit Required
AMC §4-4.1703 Overnight Off Street Parking Required
AMC §4-4.1710 Vehicle Pennit Misuse
AMC §4-4.1716 Vehicle Marking Required
eve §5204 (a) No Current Tab Displayed
eve §22500 (a) Parking in Intersection
eve §22500 (b) Parking in Crosswalk
CVC §22500 (e) Parking Blocking Driveway
eve §22500 (f) Parking on Sidewalk
eve §22500 (g) Obstructing Traffic
eve §22500 (h) Double Parking
eve §22500 (i) Blocking Wleelchair Access
CVC §22500 (n) No Parking within 20' Crosswalk
eve §22500.1 No Parking - Fire Lane
eve §22502(a) Parking 18" from Curb
eve §22507 .8 (a) Unauthorized Disabled Parking
eve §22514 Fire Hydrant
eve §22515 Unattended Vehicle
Fix It Ticket - Administrative Fee
Late Fee (if not paid or contested within 21 days)
llNIT FY26
Each 55
Each 55
Each 100
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 100
Each 55
Each 55
Each 55
Each 500
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 55
Each 475
Each 55
Each 100
Each 55
Each 475
Each 100
Each 55
Each 10
Each 25
3 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION II - CODE ENFORCEMENT
Noise Ordinance
Noise Violation (First Offense)
Noise Violation (Second Offense)
Noise V10lation (Third Offense)
Animal Control
Animal Control
Animal Round Up
Animal Impound
~
,
Control and Round Up combined as one fee beo. FY25
Animal Boarding
Previously billed as one-time fee in FY24
Dog License - Annual
Altered
Unaltered
Duplicate Tag
Vehicle Towing and Storage
Day Towing
Night Towing
Saturday, Sunday, Holiday Towing
Bicycle Transport
Daily Storage
After Hours Release
Vehicle Release Fee
Bicycle Release Fee
cl> ,t. ,-
"'.( ,, :::. ~ii UNIT FY26
Each 0
Each 500
Each 1000
Each NIA
Each NIA
Each 75
Daily 25
Each 10
Each 35
Each 1
Each 150
Each 200
Each 200
Each 50
Daily 45
Each 75
Each 200
Each 25
4 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION Ill - VEHICLES
Vehicle Pennits
Residential Autoette
Residential Vehicle
Commercial Autoette App. (Hearing)
First Hearing
Autoette Renewal
Commercial Vehicle App.(Hearlng)
First Hearing
Vehicle Renewal
Non Emergent Public Service Permit
Oversized Autoette App.(Hearlng)
First Hearing
Autoette Renewal
Oversized Vehicle App.(Hearlng)
First Hearing
Vehicle Renewal
On Service Call Placard (Annual Perm~)
Interior Vehicle
Duplicate Hearing Notice
Hearing Officer Appeal
City Council Appeal
Daily Temporary Commercial Permit
Daily Temporary Residential Permit
Monthly Temporary Residential Permit
Monthly Temporary Commercial Permit
Permit Late Fee
Property Release
Vehicle Release Fee
Bicycle Release Fee
UNIT FY26
Each 50
Each 50
Each 85
Each 50
Each 85
Each 50
Each 50
Each 85
Each 50
Each 85
Each 50
Each 25
Each 50
Each 94
Each 293
Each 489
Each 37
Each 2
Each 36
Each 391
Each 30
Each 207
Each 5
5 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION IV • CEMETERY
Single Ground Burial
Plot
Maintenance
Open/Close Grave
Vault
Ground Memorial
(includinQ ProcessinQ Fee)
Marker Placement
Ground Vase
Double Ground Burial
Plot-Double Deep
Maintenance
Vault
Ground Memorial
(includinQ ProcessinQ Fee)
Name Scrolls for Ground Memorial
(includinQ ProcessinQ Fee)
Date Scroll for Ground Memorial
(includina ProcessinQ Fee)
Marker Placement
Burial of Cremated Remains
1/2 Plot
Maintenance-LIFETIME
Open/Close Grave
Ground Memorial
(includinQ ProcessinQ Fee)
Marker Placement
Cremated Remains in Niche Wall
Niche
Placement of Remains In Niche
Small Niche Vase
Single Niche Plaque
(including Processina Fee)
Double Niche Plaque
(including Processing Fee)
Installation of Plaque
Scroll for Companion Plaque
(includinQ Processina Feel
Memorial for Cremated (Scattered) Remains
Memorial Wall Reservation
Memorial Wall Plaque
(includinQ ProcessinQ Fee)
Installation of Plaque
Small Burial Vault
,,, . ~
.:,., •A·~ •-.:::I :1 - UNIT FY26 ~ '- ·J.• ·~
..

Each 1,325
Each 240
Each 965
Each 1,064
Each Cost+10%
Each 221
Each 22
Each 1,922
Each 487
Each 1064
Each Cost+10%
(w/ $800 Deposit)
Each Cost+10%
Each Cost+10%
Each 221
Each 662
Each 126
Each 297
Each Cost+10%
(w/ $800 Deposit)
Each 221
Each 723
Each 92
Each Cost
Each 10%of Cost
Each 10%of Cost
Each 86
Each 10%of Cost
Each 238
Each Cost+10%
Each 86
Each 204
6 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION V- FIRE
~-"' ..,~ ~ '" "
*Per LA County Emergency Medical Services Agency Rate Schedule Ambulance Service (ALS) Non Emergency
Ambulance Service (ALS) Emergency
Ambulance Service (BLS) Non Emergency
Ambulance Service (BLS) Emergency
Mileage Rate
Oxygen Service
Copy of Report Fire/Ambulance
False Alarm
1st
2nd
3rd
Weed Abatement
Weed Abatement (including Processing Fee)
Plan Check
Hoods
Sprinkler
Alarm
Fire
Occupancy Calculation
Hydrant Flow Check
Automatic Dialer Alarm System
Signup
Renewal
Hazardous Material Clean Up
Hazardous Material Clean Up
/includina Processina Feel
Hazardous Inspections
Low
Ordinary
High
Special
Reinspection
Inspection Report Submission Fee
Inspection Report Submission Fee
Late Fee for Submission after 30 Days
Late Fee for Submission after 60 Days
Late Fee for Submission after 90 Days
--
UNIT FY26
Each 3,184
Each 3,408
Each 2,121
Each 2,276
Per Mile 30
Each 120
Each 45
None
48 192
Each Cost+ 20%
Per Plan Check 664
Per Plan Check 664
Per Plan Check 664
Per Plan Check 329
Per Plan Check 167
Per Plan Check 155
Each 238
Each 345
Each Cost+ 20%
Each 164
Each 164
Each 164
Each 322
Each 322
Each 322
Per Submittal 20
Per Submittal 10
Per Submittal 15
Per Submittal 20
7 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION VI - HARBOR p
Credit Card Processing Fee
Hoist
Harbor Spills (incuding Processing Fee)
Harbor Discharge Appeal
Towing Fee
Waterside Application Fee
Waterside Application Deposit
1st Installment
2nd Installment
Haul Out Fee
Storage Fee - Per Week
Mooring Service Charge (Mooring Use - Nightly Rate)
Dinghy Dock
30' and under
31' to 39'
40' to 49'
50' to 59'
60' to 69'
70' to 79'
80' lo 89'
90' lo 99'
100' or more
Special Spring/Fall rate:

Spring - Palm Sunday thru June 15th
Fall - Seel 15th thru Oct 14th
Special Winter rate:

October 15th thru Palm Sunday
~
_,
Mooring Service Charge (Mooring Use 4 Hour Rate = 1/2 of Dally Rate) 30' and under
31' to 39'
40' to 49'
50' to 59'
60' to 69'
70' to 79'
80' to 89'
90' to 99'
100' or more
..

UNIT FY26
Each 3.99%
Each 36
Each Cost+ 20%
Each 515
Each 95
Each 306
Due 4/1 500
Due 8/1 500
84 Per week 36
Daily Free
Daily 49
Daily 54
Daily 67
Daily 82
Daily 108
Daily 134
Daily 148
Daily 177
Daily 200
Pay 4 nights consecutive Nights and get the next 3 free Nights Pay 2 nights consecutive
and getthe next 5 free
Each 25
Each 27
Each 34
Each 41
Each 54
Each 67
Each 74
Each 89
Each 100
8 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION VI • HARBOR
Annual Lease Fees
30'
40' & 45'
50'
60' and above
Annual Mooring Permit (cost/ft/month)
Plus maintenance, chain and taxes
water Dock Coin Operation for Fresh Water
Harbor Use Fees and Wharfage
Harbor Businesses
Fishing Tournament. Per Boat
(Charitable Exemption)
Wharf age - Cross Channel Carrier Arrivals
Wharf age - Cross Channel Carrier Departures
Increase ID $5. 00 effective September 2, 2025
~
Wharf age - Cruise Ships (1000k of landed passengers)
Increases ID $7.50 effective January 1, 2026
Wharfage - Hospital Measure H
Shoreboat Fee
"'§
~- ~ )
UNIT FY28
Annually 1,848
Annually 2,472
Annually 3,706
Annually 4,448
Annually 1.17
Cost
7% gross receipts
4% gross receipts
Per Passenger 3.00 Each Way
Per Passenger 5.00 Each Way
Per Passenger 5.00
Per Passenger 2.00 Arriving
Per Passenger 7.00
9 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION VII - COMMUNITY SERVICES
Sports Programs
T-Ball
Basketball (Youth)
Flag Football (Youth)
Swimming Lessons (Youth)
Soccer (Youth)
Day Camp (Weekly) Summer 2024
Day Camp (Daily) Summer 2024
Basketball (adult)
Flag Football (Adult)
Volleyball (Adult)
Soccer (Adult)
Recreation Registration Late Fee
Festival Booth
Non-Profit Orgnization (without food preperation)
Non-Profit Orgnization (with food preperation)
All Other
Kayak and Stand Up Board Rack Rental
Six Month
Annual
Permit Applications
Street Performer
Sidewalk Vendor
Special Events - Commercial
Special Events - Not-for-profit, Government agency
Advertising (Vons Digital Sign Board)
Two-week Post
Annual Post
Other Recreation Programs
Contract Recreational Proarams
Other Eaulcment Rental
Field lighting (two hour minimum)
Chair Rental (min. 25 chairs)
Table Rental (min. 5 tables)
Chair and Table Refundable Deposit
FY26
Each 35
Each 35
Each 35
Each 8/class
Each 35
Each 80
Each 20
Each 35
Each 35
Each 35
Each 35
Each COST+ 20%
Each 40
Each 60
Each 90
Each 100
Each 170
Each 35
Each 35
Each 100
Each 50
Each 15
Each 75
I Contracted Rate
Hourly 40
Each 2
Each 10
Each 250
10 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION VIII - CITY FACILITY RENTALS
Group Designations for Facilty Rentals:

Tiered rates to provide discount rates for resident and non-profit organizations.

Group 1: City of Avalon sponsored or co-sponsored event or program Group 2: Resident private use; not-for-profit organizations; governmental agencies Group 3: Non-resident private use; commercial use
Full Day Four (4) hours or more
Half Day Up to four (4) hours
Insurance Requirements
The City requires facility renters to obtain liability insurance naming the City of Avalon as additional insured as the property owner/lessor. The renter must obtain this on their own. The City of Avalon will assist in this process by providing a step-by-step guide on how to obtain the required insurance. which will include a list of affordable insurance agencies meeting our requirements.

Facilities Damage & Cleaning Deposit
Council Chambers 250
City Hall Conference Room 250
Tremont Hall 300
Joe Machado Field 500
FY 26
Use of Facilities Group 1 Group 2 Group 3
City Hall Council Chambers
Full Day o 75 300
Half Day o 40 160
City Hall Conference Room
Full Day o 75 300
Half Day o 40 160
City Park, Knabe Park, Kids Park
Full Day o 30 85
Basketball Court, Volleyball Court
Two (2) Hour Maximum o 30 85
Skate Park
Full Day o 30 85
Wrigley Stage
Full Day o 30 75
Beach Penmlt
Four (4) Hour Maximum o 140 200
Street Banners
General (Six Weeks) o 50 200
Tremont Hall
Full Day o 125 300
Half Day o 80 160
Joe Machado Field
Full Day o 250 350
Half Day o 140 200
Resident Recreation League o 50 50
Joe Machado Field (Courtyard Only)
Full Day o 125 175
Half Day o 70 125
11 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION IX - USE OF LABOR AND EQUIPMENT UNIT FY26
The rates are used by staff to create a composite rate for a specific service such as sewer lateral repair. The City charges the same equipment rental rates that are specified in the California State Transportation Agency (Caltrans). https://dot.ca.gov/programs/construction/equipment-rental-rates-and-labor-surcharge In cases where a piece of equipment is not in the Caltrans book, the rate specified in the User Fee Schedule will be used. Equipment is not available for rent or personal use. These charges are modified for Community Groups and are shown below.

Public Safety
Firefighter/Engineer Hourty 84
Firefighter/Engineer - Time over eight (8) hours in a day Hourly 125 Harbor Patrol Officer•• Hourty 80
Sheriff Deputy- Hourty Cost+20%
Public Works
Maintenance Superintendent Hourly 75
Lead Worker Hourty 61
Maintenance Worker Ill Hourly 52
Maintenance Worker II Hourty 45
Maintenance Worker I Hourty 38
Other Personnel Hourty 1.5 x hourty rate
Overtime Hourty 1.5 x hourty rate
Call Out (2 Hour Minimum) Hourly 1.5 x hourty rate
Equipment
Sidewalk Street Sweeper Machine Hourly 49
Waste Water Contracted Worker Hourly Cost+20%
Ambulance Hourty 37
Dump Truck Hourty 37
Fire Engine Hourty 51
Harbor Patrol Boat Hourty 37
Pick-Up Truck Hourty 34
Rescue Boat Hourty 51
Street Sweeper/ Trash Truck Hourly 37
Other Equipment Hourty 36
Sewer Maintenance Program (Scheduled and Emergency)
Four (4) hour minimums required for work
Vactor Truck Hourty 144
Robotic CCTV Hourty 85
Video Pipe Camera Hourly 37
City Pick Up Truck Hourty 35
T owable Pressure Washer; Jetter Hourly 33
Ditch Witch Hourty 49
Waste Water Disposal Gallon 0.25
••Public safety costs for events that contribute more than 40% of net proceeds, but not less than $5,000, to local charities shall be waived.
12 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION X -AVALON TRANSIT

POINT TO POINT TRANSIT
General Public Per Passenger Per Ride
Group Passenger Rate Per Ride (Three or More Passengers)

DIGITAL SIGNAGE BOARDS
Directory Listing
Directory Update
Special Events Notice
Advertisements (Commercial)

CHARTER
UNIT FY26
2 6
Cost + 20%
13 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION XI • PLANNING
Public Noticing
Tentative Parcel Map
Tentative Tract Map
Final Tract Map
Final Tract Map Deposit
Final Tract Map - Engineer Review
(includina Processina Feel
Final Parcel Map Deposit
Final Parcel Map
/includino Processino Feel
Final Parcel Map - Engineer Review
/includino Processino Feel
Lot Line Adjustment
Conditional Use Permit (CUP)
Condo Conversion
Bonus Density
All Others
Conditional Use Permit (Transient Rental)
'
(CUP/$1822, CDP/$1156 Public Notice/$272, CEQA/$510/
Home Occupancy Review
Variance
Less than 25%
Greater than 25%
Coastal Development Permit (CDP)
Zone
Zone Change
Zone Change+ Local Coastal Permit (LCP)
Zoning Confirmation letter
Sign
Temporary Sign Permit
Business Comer Sign Permit
Sign Permit
Sign Variance
Fees for Additional Processing Needed:

General Plan Amendment
General Plan Deposit
General Plan Consultant Preparation
/includina Processino Feel
General Plan City Attorney Review
/includino Processino Feel
Appeal to Planning Commission
Appeal to Planning Commission Fee
Development Agreement
Development Agreement Deposit
Development Agreement Attorney Review
(including Processina Feel
UNIT FY26
Each 292
Each COST+ 20%
Each COST+ 20%
Each 4,888
Each COST+ 20%
Each 4,888
Each COST+ 20%
Each COST+ 20%
Each COST+ 20%
Each 2,930
Each 2,930
Each 1,952
Each 3,760
Each 197
Each 647
Each 1,293
Each 1,238
Each 4,881
Each 9,759
Each 304
Each 89
Each 351
Each 304
Each 488
Each 2,442
Each 13,967
Each COST+20%
Each COST+20%
Each 977
Each 13,967
Each COST+20%
14 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE
SECTION XI • PLANNING (CONTINUED)
CEQA
Categorical Exemption
Mitigation Negative Declaration
Declaration Deposit
Consultant Preparation (including Processing Fee)
Attorney Review (including Processing Fee)
Attorney Preparing/Filing (including Processing Fee)
Mitigation Monitoring (including Processing Fee)
EIR
EIR Deposit
Consultant (including Processing Fee)
Attorney Review (including Processing Fee)
Attorney Preparing/Filing (including Processing Fee)
Attorney Review/ Approval. CC&Rs
/includina Processina Feel
Other Permits
Extension-6 Month
Compliance Certificate
Administrative Permit
Accessory Dwelling Unit Permit
Preliminary Review Fee
Temporary Use Permit (NEW• FY21)
Site Plan <25% of building
Site Plan > 25%
Building Permits
Issuance Fee
Valuation $0 to $700
Valuation $700 to $25,000
Plus: for each additional S1 .000 or fraction above $1 ,000 Valuation $25,001 to $50,000
Plus: for each additional S1 ,000 or fraction above $25,000 Valuation $50,001 to $100,000
Plus: for each additional S1 ,000 or fraction above $50,000 Valuation $100,001 to $250,000
Plus: for each additional $1 ,000 or fraction above $100,000 Valuation $250,001 to $500,000
Plus: for each additional S1 ,000 or fraction above $250,000 Valuation $500,001 and over
Plus: for each additional $1 ,000 or fraction above $500,000 UNIT
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Work within Archeological Sensitive Areas (ASA). See Archeological Monitoring Fees (Page 13) Strong Motion lnslrumentation & Seismic Mapping (SMIP) Fee Collected on behalf of the Dept. of Conservation
Cal~omia Building Standards & Commission (CBSC) Fee
Collected on behalf of Calif. Building Standards Commission FY26
547
973
3,491
COST+20%
COST+20%
COST+20%
HOURLY COST+20%
13,560
COST+20%
COST+20%
COST+20%
COST+20%
190
448
483
483
320
402
1,293
2,586
47 63
95 26
688
20 1168
14 1,878
7 2,881
7 4,380
7 Based on construction
valuation + 5%
Administration Fee to
City
Based on construction
valuation + 10%
Administration Fee to
City
15 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION XI - PLANNING (CONTINUED)
Green Building Code/Plan Check Fees
Instrumentation Program Surcharge
Residential
Other
Minimum
Energy Conservation Surcharge
Oisabled Access Surcharge
Combined Bldg/Plumbing/Electrical/Mechanical (incl.

Plan Check
Plan Check
Standard Plans
Minimum
Ouplicate plan (percentage of plan check fee)
Extension Fee (percentage of plan check fee)
Grading Permit Fees
Issuance Fee
1- 50 cubic yards
51 - 1,000 cubic yards
1,001 - 10,000 cubic yards
for each addtional 100cu.yds. or fraction above 1,000
10,001 - 100,000 cubic yards
for each adcitional 100 cu.yds. or fraction above 10,000 101 ,000 or more
for each ac:kftional 100 cu.yds. or fraction above 100,000 Pools)
See Archeological Monitoring Fees for work within Archeological Sensitive Areas (ASA) Grading Plan Check Fees
Gradina Plan Check (includina Processina Fee)
Oeposit
Landscape Permit Fees
2,500--7,500 square feet
7,501 --15,000 square feet
15,000- 30,000 square feet
30,001 square feet to 1 acre
Landscape Plan Check Fee
Landscape Plan Check (including Processing Fee)
Oeposit
UNIT FY26
Included in regular plan
check .

Each 10%
Each 20%
Each 5%
Each 10%
Each 5%
Each 1.5 X Building Permit
Fee
16 Each 1.5 X Building Permit
Fee
Each 118
Each 221
Each 70%
Each 25%
Each 49
Each 236
Each 352
Each 1,400
Each 99
Each 231
Each 63
Each 8,026
Each 158
I Each I COST+20%
2,012
Each 277
Each 414
Each 830
Each 1014
Each COST+20%
1,342
16 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION XI - PLANNING /CONTINUED)
Additional Fees
Work Commencing before Permit Issuance Per CBC 109.4
Minimum Fee for violation
Issuance for items below
Miscellaneous site inspection
Occupancy Inspection (Change of Use)
Residential
Other
less than 5,000 square feet
5,001 - 10,000 square feet
10,001 - 100,000 square feet
above 100,001 square feet
Substandard Notice Correction Inspection
Demolition Permit Fee
Demolition Inspection-Asbestos/Lead
Group A, Division 4 Structures
Amusement Park Inspections
First structure
Each additional structure
Building Relocation
up to 2,500 square feet
2,501 square feet and above
Trailer Coach Inspections
Inspection Outside Business Hours , per hour
Other inspection, per hour
Barriers for Pools
Permit Copy
Public Record Research (per hour)
Concept Review Approval
Concrete I Material Testing (NEW FY21)
Geotechnical Site Review
Engineering geology report
Geotechnical engineering report
Combination Report
Review to determine need for report
Coastal engineering reports
Parking occupant load calculation
Reproduction of microfilmed plans
Assignment of house numbers
Hourly Rate to review changes
Hourly Rate to review additional changes
Certificate of Occupancy
Certificate of Occupancy Issuance
Temp. CeMicate of Occupancy (TCO) (90 Days)
TCO Extension (30 days)
Processing 45-day notice
Processing Notice of Violation
Notice of Compliance (Rescission of Notice of Violation) Noncompliance Fee
UNIT FY26
Each 2x Permit Fee
Each Min . $100
Each 49
Each 615
Each 321
Each 785
Each 945
Each 1,573
Each 2,382
Each 556
Each 239
Each 356
Each 321
Each 239
Each 38
Each 635
Each 1,270
Each 236
Each 143
Each 143
Each 135
Each 3
Each 45
Each 189
Each Cost+ 20%
Each 615
Each 615
Each 859
Each 615
Each 564
Each 159
Each 49
Each 78
Each 159
Each 159
Each 147
Each 222
Each 147
Each 643
Each 1,065
Each 439
Each 295
17 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION XI - PLANNING (CONTINUED)
Noncompliance Fee
R-3 occupancies
NI other occupancies
Board of Appeals fee
Alternate material fee
Additional hourly rate
Electrical Permit
Issuance Fee
Services, Switchboards
Solar Systems
Investigation Fee - Work without Permit
R-3 occupancies
NI other occupancies
Noncompliance Fee
One and two unit buildings
For other occupancies
Saltwater Connection/Disconnection Fees
Connection
Disconnection
Sewer Connection Fees
Residential
Public Shower
Hotels
Take-Out Restaurant
Churches
Bar/Restaurant (less than 100 seats)
Bar/Restaurant (more than 100 seats)
See Section V. Fire for fire-related plan check fees
UNIT FY26
Each 151
Each 300
Each 639
Each 326
Per hour 162
Each 49
Each 450
Each 251
Each 501
Each 151
Each 300
Each 151
Each 49
Per dwelling unit 1,170
Per shower 392
Per room 585
Each 1,755
Each 2,343
Each 3,511
Each 5,265
18 CITY OF AVALON
FISCAL YEAR 2025-2026

MISCELLANEOUS FEE OR SERVICE

SECTION XII - PUBLIC WORKS
Spilled Load (including Processing Fee)
Nuisance Abatement (including Processing Fee)
Street Sweeping (including Processing Fee)
Landslide Clean-up (including Processing Fee)
Pol Hole Repair (including Processing Fee)
Waste Water Treatment Facility Dump Fee (minimum)
Per Gallon (after 600-gallon minimum fee)
Public Works Permits
Excavation Permit
Excavation Deposit (min $50) - Issuance Fee
Excavation Administration Surcharge (non-refundable)
Excavation Penalty (including Processing Fee)
Minor/Temporary Encroachment Permit
Major Encroachment Permit
Obstruction Permit (Daily)
Obstruction Permit (Monthly)
Curb Cut Application
Abandond Vehicle -full cost apprx $1 ,000/vehicle
Archeological Monitoring Faes - Work within Archeological Sensitive Areas (ASA) Issuance Fee
Excavation Permit:

Deposit
Archeological Monitoring Services (inc. Processing Fee) Deposit for 10 or more Anticipated Excavations a Year
(May or may not be in an ASA)
UNIT FY26
Each COST+20%
Each COST+20%
Each COST+20%
Each COST+20%
Each COST+20%
Each COST
Gallon 1
Each 293
SQUARE FT 48
Per Deposit 20% of Deposit
Each COST+20%
Each 293
Each 2,000
Each 95
Each 293
Each 293
Each COST
Each 49
Each 293
Deposit 4,695
Each COST+20%
Deposit 9,390
19 CITY OF AVALON CITY COUNCIL
MEETING DATE: December 16, 2025 AGENDA ITEM: / b ------ - ORIGINATING DEP: Finance CITY MANAGER: - ~DMi -_._tv\.. ____,.___ PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Revocation of Business Licenses - OMEO Suites Catalina Island RECOMMENDED ACTION($): (1) Hear a presentation on the reasons for the proposed revocations of the business licenses for the OMEO Suites Catalina Island (Business License No. 011090). (2) Open the Public Hearing to hear public comments. (3) Close the Public Hearing. (4) If consensus, revoke the business license for the OMEO Suites Catalina Island (Business License No. 011090).

REPORT SUMMARY: On May 3, 2022, City Staff approved the business license application for the OMEO Suites Catalina Island (Business License No. 011090), doing business as the Casa Mariquita Hotel, located at 229 Metropole Avenue. A copy of the business license application has been included as an attachment to this report. The license covered the operation of a twenty-three (23) room hotel. Tin Jon Syiau was identified as the owner of the business on the license application.

Hotel operators are required to report and remit applicable transient occupancy taxes to the City on a monthly basis as outlined in Section 3-3.407 of the Avalon Municipal Code. OMEO Suites Catalina Island has failed to report and remit applicable taxes for the period of April 2024 through October 2025. Although not currently taking online reservations, the hotel was operating through October 2025 as evidenced by online reviews identified by the City. The City has made multiple attempts to contact the owner and resolve this matter prior to pursuing revocation , including through notices of violation sent via certified mail to the address on file in August 2024 and November 2024. On August 28, 2025, the City was contacted via e-mail by an individual on behalf of the hotel requesting information on how to resolve the tax matter.

City Staff made multiple attempts to contact the individuals identified without a response.

Copies of support for the online bookings, notification letters, and e-mail correspondence have been included as attachments to this staff report.

Section 3-1.116(a) of the Avalon Municipal Code states that any license issued may be revoked if the licensee has violated any provision of the Avalon Municipal Code. At the November 18, 2025 City Council Meeting , the City asserted that the licensee has violated Section 3-3.407 regarding the reporting and remitting of transient occupancy taxes. In response, the City Council authorized the Finance Director to initiate the revocation process.

As required under the Municipal Code, the City mailed a letter on December 2, 2025 via certified mail to the address on file with the City, notifying the license holder of the public hearing for revocation of the business license. The City also sent an e-mail to the addresses listed on the August 28, 2025 e-mail. The letter included an assessment of taxes owed, including penalties and interest, for the period of April 2024 through October 2025 totaling $201 ,741 .50. Section 3-3.409 of the Municipal Code provides the Finance Director with the ability to estimate and assess taxes owed for any operator that has failed to collect, report, and remit the applicable taxes. As of the date of publication of the agenda, the City has not received a response from the business owner regarding the revocation of the business license or assessment of taxes owed.

City Staff is recommending the revocation of the existing business license for the OMEO Suites Catalina Island (Business License No. 011090) due to failure to comply with Avalon Municipal Code Section 3-3.407 as provided under Avalon Municipal Code Section Section 3-

1.116(a).

GOAL ALIGNMENT: Fiscal responsibility
FISCAL IMPACTS: Lost revenue due to failure to report and remit taxes owed to the City.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Visitor-driven tax revenues represent the majority of General Fund and Harbor Fund revenues. Failure to timely report and remit taxes owed to the City impacts the City's ability to provide essential services.

FOLLOW UP ACTION: City Staff will work with the City Attorney to pursue collection of assessed taxes owed to the City.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Business License Application - OMEO Suites;

2. Notice of Violation sent via certified mail on November 15, 2024,

3. Notice of Violation sent via certified mail on August 21, 2024;

4. E-mail correspondence dated August 28, 2025 through September 25, 2025;

5. Notification of Revocation sent via certified mail on December 2, 2025;

6. E-mailed Notice of Revocation sent December 3, 2025
City of Avalon
Finance Use Only:

Date Entered: {)6-0?,· l,Qiv
License Number: 0l! 0".1,0
TOT D Ad Tax D Use Fee Bust ess License Tran~mittal Form Date: C)~lol-\ 1,;01.,v- From: lb.Jcu,{(,A..,, , Finance Department Please review the attached application and return it to the Finance Department at your earliest convenience.

FINANCE DEPARTMENT: 0 N/A _y(APPROVE WITH CONDITIONS
Comments: Mo11:thly rar a,>ochn~ ~,re~
~ APPROVE O DENY
Approved by: ~-z~ Date: "I /6/U.

PLANNING DEPARTMENT: ON/A ~PROVE WITH CONDITIONS APPROVE O DENY State Contractor's license Verified: _______ ,.._ Date: .... ,, By: _____ _ Comments: U\ Le<---0 C c::C) LA JJ,z e:9 ct;> c;) C ,5@ \t\ 5 FIRE DEPARTMENT: 0 N/A O APPROVE WITH CONDITIONS 'lAPPROVE O DENY Comments:-------------------------------
Approved bye 'f----J-- ~ ,f\:l.- Date: t-( -S' l,,. ·7...-, Approved byg]-r. 4,_,{)c«.I Date: -=~_,/_2- __,1,_2
_2-______ _ I /_:_
HARBOR DEPARTMENT: 0 N/A O APPROVE WITH CONDITIONS efAPPROVE O DENY Comments: ______________________________ _
Approved by: --"£=_-......,_1 -_,,~_ ,.,,_,·,_.....---_,_z_---i:>_ -_' _____ Date: __ '(_ - _~_ - _Z.._ 2-_______ _ ADMINISTRATION DEPARTMENT: 0 N/A O APPROVE WITH CONDITIONS ~PPROVE 0 DENY Comments: _______________________________ _
Date: ~/z/-z. L

COMMUNITY SERVICES DEPARTMENTO N/A O APPROVE WITH CONDITIONS Comments:
~PPR0VE O DENY
/l ~----- tA ')_ Approved by: ~ Date: ____ ,. 2_1,_·_1 ______ _ City of Avalon
,110 Avalon Canyon Road
Post Office Box: 707
Avalon, Ca 90704
Phone: (310) 510-0220
Fax: (310)510-0765
www.cilyofavalon.co1n
Please complete all areas that apply.
lnfonnation must be typed or printed in blue or black ink.

A. Business Name: O"<Y\.-eO S.ul~~ (ct\-e<llY"'\C,t t'S,\.Ctt'\cl Business Address: _a29. __ ~-S:-~QfQ.LS:._Af ~_fug_iQ_"=1__~fi B.

Business Mailing Address:\ ~y_ N DJ\ V ~ ___ A,y~----------- City: ~Y\.ro \/le,\ _____ State: _ C:.,\'\ __ Zip Code: _ C\ \ 0 t~--- Business Phone Number: ---~2_y ___ ~~ \ __ O1.c>SS _____________ _ Husiness Fax Number: ----------=·----------------------------·------------ Ema.ii Address: _O.d!Y\\'A. ill o~-eoS\Jl+-eS., ( 0~ ------- Owner Na.me: \\'1\ 1on.. S"\ l~ \I
Owner Social Security Number: __ 55 ~:15 \ \ ~5--------------- Owncr Mailing Address: _\3-:\.. N O \ \ V--C rt"'-'--€...., ________ _ City: \'Y'Gry(O\J ~--- State: C)A __ Zip Code: u\ lO I 'P __ _ Owner Phone Number: ---~~_(o _ _'.Q_k-j __ 0 4> 5 ~------------------ Type or Business:----------------------------------------------- Owm:rslup Type: ____ Sole Proprietorship
____ Corporation ____ LLC
____ Partnership ____ Non-Profit
State I.D. Number:----------------------------------------------- Federal I.D. Number:---------------------------------------------- State Sales Tax Number:------------------------------------------- PLEASE Kn'ACH A COPY OF VALID STATE CONTRACTOR'S UCE'.\ISE D. Stale Contractor's Llccnsc Number:-----------------------·--·-------------- Class: ___________________ Expriation Date: ______________________ _ License Description: --------------------·-----------------·-----------·-- Local address where work will be performed: ___________________________ _ TO B~ COMPLETED IF VEHICLES WILL BE ASSOCIATED WITII IH JSINESS E. >lumber of Power Vehicles under 20': ---- ---------------------------- >lumber of Power Vehicles over 20': ____ . ·-·--· .. -· _ --·-·--------. >lumber of Non-Power vehicles under 6': -------------------------------- Number of Non-Power vehicles over 6': ----··-··--·-------------- ----------

TO BE COMPLETED IF FQOD AND ALCOHOLIC BEVERAGES ARE SERVED F. Se parale B,u·: ------------------------------·---· _ -·-__ .......... _ ... __________ _ Dancing Allowed: __________ -------------------------·-·-------------- Outside Senrice: ---------------------------------------------····--·-···· Entertainmcnl Provided: --·------·--------------------------------- Take-Out Rcslau1·ant: --·----------------------------------··--·-------- Outsicle Service after 11PM: -·---------------------------------------- Seating more the 100 seats:----------------------·--··------------------ Sealing less tkm 100 seals: --------------------------------------------

TO RE COMPLETED FOR TRANSIENT OR YEAR-ROUND RENTALS
G. Total Number of U nils: ___ ]_~------
'Nill lhe properly be rented trr1nsiently? -------------------------------- Docs rental of the unit include use of a vehicle? ____ 'ND __________________ _ Do you have off streel pa.rk.ing for the vehicle ? ____ NO --·---------------- Does the property have an active Conditional Use Permit? -··---·-•-· .... . -····-- vVill a Management Company be reprcscntig11 the property? -------·-·--.. ·······•· ..- Management Company: --------------------------------------------- Mailing Address: -------------· ··--__________________________ _ City: ________________ State: _______ Zip Code:----·------- Phone Number: _________________ _ Fax Number:·--·-·- -.. --·-•--·--·----- Ema.ii Address: ----·--·------·--·----------------·--·--·--·- --------·--·------ I I. Is your business conducted on leased or rented property? _________________ _ Do you have permission from the property owner:) _______________________ _ Properly Owner's Name: -------------------·------------------------ Mailing Address: -------------------------------------------------- City: ________________ State: _______ Zip Code: ____________ _ Phone Number: _________________ _ Fax i\'umber: ___________________ _ Email Address:------------------------------------------------- TO OE COMPLETED IF Bl JSI>!F.SS HAS VENnING OR AMUSEMENT MACHINES I. Number of Amusement Machines: ------------------------------------ Number of Vending Machines: ------------------------·-·--·--·· ··--------- J.

APPLICANT NA.J\tIE (PRINT): T1V) J O'V\ S, 't lct \J --------------------- ------------•- ~· ·•-··--·-----·-· APPLICA.J"JT SIGNATURE: ------z..: ·-------- ------------------------------ DATE: ---- <->-1/ ot-lf_ 2-C.Y2,. ' ______________________________________ _

FINANCE DEPARTMENT USE ONLY
License Number: _______________ _ Amount Pa.id: ___________________________ _ Receipt Number: ________________ _ Date Paid: ____________________________ _ Status of Contractor's License: ____ _ Date License was Checked: __________ _______ _ Reason license is inactive (if any):

November 15, 2024
Omeo Suites Catalina Island
134 W. Olive Ave
Monrovia, CA 91016
Sent via Certified USPS Mail

CITY OF AVALON
OPY
Re: Notice of Transient Rental Tax Compliance Violations - Casa Mariquita 229 Metropole Ave Avalon CA 90704. BIL#0ll090
Dear Tin Jon Syiau:

The City of Avalon does not have record of receipt of monthly hotel transient occupancy tax reports and tax remittances for the period of April 2024 through September 2024 for the Casa Mariquita property located at 229 Metropole Ave.

According to ow- review, the hotel was open and operating during this period. Under Section 3-

3.407 of the City of Avalon Municipal Code, operators of transient rentals are required to report the total amount of rents charged and collected, as well as the amount of transient occupancy tax collected, and remit the tax collected, to the City on a monthly basis.

Under Municipal Code Sec. 3-3.409, if an operator fails or refuses to collect the transient occupancy tax, the Director of Finance shall proceed to estimate the tax assessment due against such operator including the interest and penalties provided for by the provisions of the Municipal Code. I have estimated the amount of taxes owed to be $78,859.63, plus an original delinquency penalty of$7,885.96, a continued delinquency penalty of$8,674.56, and interest of$1,231.22 for a total amount due to the City of $96,651.37 as provided under Municipal Code Sec. 3-3.408. If you would like to appeal this amount assessed, you must submit an appeal in writing for a hearing on the amount assessed within 10 business days after receipt of this notice otherwise the determined amount will be final and conclusive.

Sincerely,
1-}:j~
Matthew Baker
Finance Director
Cc. David Maistros, City Manager
Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 - Avalon, CA 90704 (310) 510-0220 ,.

CITY OF AVALON
P.O. BOX 707
AVALON, CA 90104
Orneo Suites Catalina Island
134 W. Olive Ave
Monrovia, CA 91 o 16
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Orneo Suites Catalina Island
134 W. Olive Ave
Monrovia, CA 91016
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August 21 , 2024
Omeo Suites Catalina Island
134 W. Olive Ave
Monrovia, CA 91016
Sent via Certified USPS Mail

CITY OF AVALON
Re: Notice of Transient Rental Tax Compliance Violations - Casa Mariquita 229 Metropole Ave Avalon CA 90704. BIL#0JJ090
Dear Tin Jon Syiau:

The City of Avalon does not have record of receipt of monthly hotel transient occupancy tax reports and tax remittances for the period of April, May and June 2024 for the property at Casa Mariquita 229 Metropole ave.

Your property has been identified as an active rental online. According to our review, there are confirmed transient stays at your prope1ty https://www.omeo.vip/ over the period requested.

Under Section 3-3.407 of the City of Avalon Municipal Code, operators of transient rentals are required to report the total amount ofrents charged and collected, as well as the amount of transient occupancy tax collected, and remit the tax collected, to the City on a monthly basis. Payment of transient tax is now available on the City's website https://www.cityofavalon.com/308/PayQnlin~. I have also included a copy of the transient tax form that may be used for reporting of remittances made by cash or check.

Please provide the City with completed copies of the monthly transient tax reports, along with applicable tax remittances, to the City for the period of April, May and June 2024. If you believe that reports were previously submitted, please provide the City with copies of the reports, along with proof of payment. Operators are required to maintain records of payments for a period of three years as outlined in Sec. 3-3.411 of the Municipal Code. If you take no action within the next 30 days, the City shall proceed to determine and assess the tax, interest and penalties as provided in Sec. 3-3.409 of the Municipal Code. •
If you have any questions regarding reporting, or remitting transient occupancy taxes that are owed to the City of Avalon, please contact the Finance Department by phone at 310-510-0220 or via email at [email protected].

Sincerely,
Matthew Baker
Finance Director
Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 - Avalon, CA 90704 (310} 510-0220 SENDER: COMPLETE THIS SECTION
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Tin Jon Syiau
134 W. Olive Ave
Monrovia, CA 91016
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134 W. Olive Ave
Monrovia, CA 91016
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Finance Director, City of Avalon
41C A•,a,on Canyor Road
."-.V.3.<::•r. Cl,, 90704
-el 31{) 510-0220 ext 170 j Fax 310.510-0765
Th s -iiessage .;incudtng any -atl&Jr:nertsl may CJJrftain c:(1flde1rnai, ptcpl'!etary. ~nv·eged andicr ;tiva1t 1nfctm:i'!10r Tl\,? ,nforrr ebcn :; in:ended :-0 be kt' lhe u,.,e o' :•e 1•,<:Md;ai o- erfity designated abo•le fy::,J are not the int.ended reapient 0' :11s mes,age. i:x.;caSi:l rctif; il'e sen~ 1mrr.,jiately. and delete the me.sage and any ct'Y..hIT'er,ts. AA'/ d1sc,r,swe reproit ... :tion, d;sl:ibutton er o1hei us.e t,f !t s message CT ::ri~ ar11:hrr:encs by ar, 1ndvidua or eno!y O!te 111an ,he iriteride:l recllienr 1s v-c11ibite:d.

From: tai cooc <[email protected]>
Sent: Thursday, August 28, 2025 5:01 PM
To: Matthew Baker <[email protected]>
Cc: Heinz Dean Raynera <[email protected]>; Tin Jon Syiau <[email protected]> Subject: Back TOT for casa Mariquita
You don't often get e1T1ail frolTI [email protected]. Learn why this 1s important Dear Mr. Baker,
My name is Charlie and I am writing on behalf of Casa Mariquita. We are currently addressing a situation involving outstanding tax liabilities resulting from an administrative oversight and company shake ups. Consequently, our main office has been temporarily impacted by IRS action.

Heinz, our newly appointed controller, and Dr. TJ, our owner, are working diligently with me to resolve this matter fully and efficiently. We are committed to rectifying the outstanding tax obligations and resuming normal business operations as swiftly as possible.

We would greatly appreciate it if you could outline the necessary steps to address this issue and facilitate a prompt resolution. Please contact me at your earliest convenience to discuss this further.

Sincerely,
Charlie
Sent from Yahoo Mail for iPhone
From: Matthew Baker
Sent: Tuesday, September 2, 2025 9: 18 AM
To: tai cooc <[email protected] >
Cc: Heinz Dean Raynera <[email protected]>; Tin Jon Syia u <tjsyiau@gmai l. com >; Amanda Pobul <[email protected]>; Ofelia Peguero <opeguero@cityofava lon.gov> Subject: RE: Back TOT for casa Mariquita
Hi Charlie,
Thank you for reaching out.

The City last received TOT payment from the Casa Mariquita in March 2024. In order to come into compliance with the City's requirements for hotels, we will need you to submit monthly transient tax forms and remit all applicable taxes, including penalties and interest, for each month outstanding (April 2024-July 2025) and then will need to renew you r business license for 2025. Below is a link to the City's web page where an on line version of the form is available. I have also attached a PDF of the form if you would prefer to fill-out manually and mail in the forms for each month .

Applications. Licenses & Forms I Avalon . CA
Please let me know if you would like to set-up a call to further discuss. I have also included Amanda and Ofelia from the City's Finance Department on this email chain.

They can be available if you have any specific questions on how to complete the forms.

Best regard s,
Matt
From:

To:

Cc:

Subject:

Date:

Attachments:

Hi Charlie,
Matthew Baker
~
Heinz Dean Raynera; Tin Jon Syiau; Amanda Pobul: Ofelia Peguero RE : Back TOT for casa Mariquita
Thursday, September 25, 2025 10:40:11 AM
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Checking back in. Please let me know if you have any questions or would like to set-up a call to discuss.

Thanks,
Matt
Matthew Baker
Finance Director, Crty of Avalon
41 C J\.valon Canyon Roac
Avatzm, CA 90704
-el 3-1 D 5'0--0220 ext. 170 ! Fax 31C51:.:-C7f,5
Th, ,ne,sage (inClJding any atta,::r-&"OO"ts] may contain cwiidfr!!la!, proprietary i;nv '59ed and!ct ~m'ffie 1n1oona1ior .. Th.; irilorrr;;;nai , in:aided :o be iO! the US£; o: :•e 1r," v :t.i.al o· ertity dew;;nated ahc•,-e !f y::,; are not 1he intended reopient r:f:,, ::: =~age. p.eaS<: r 0 tify c,,e ~ender 1mmed1ately, and delete the message aid any an,:hrrents .6ny d1sc,:,;;Ll'e, repro:>JCtian, dlstlibunoo er o1he' use of It, s message Cf a,y ar:a:hrr.ents b~• ar, indNidu:1 Of entity o!her than :he intended r,,at,ent 1S- :,cnibrted
Matthew Baker I f:1;-,y,r·p ['i r"·tn
City of Avalon
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December 2, 2025
Omeo Suites Catalina Island
134 W. Olive Ave
Monrovia, CA 91016
Sent via Certified USPS Mail

CITY OF AVALON
Re: Notice of Business License Revocation and Assessment of Taxes Owed Dear Tin Jon Syiau:

This letter serves as fonnal notification that the Business License for Omeo Suites Catalina Island (Business License 0 11090) is scheduled for revocation at a Public Hearing on Tuesday, December 16, 2025 at the regular City Council Meeting, unless corrective action is taken prior to the meeting date. Under Avalon Municipal Code (AMC) Section 3-1.116, business licenses may be revoked for violation of any provision of the AMC. The Business License for the Omeo Suites Catalina Island is scheduled for revocation due to failure to comply with AMC Section 3-3.407 regarding the monthly reporting and remitting of transient taxes owed to the City. At the hearing, you will be given the opportunity to appear personally or through counsel, to be heard, defend the charges and to call witnesses to show cause why the license should not be revoked.

The City of Avalon does not have record of receipt of monthly hotel transient occupancy tax reports and tax remittances for the period of April 2024 through October 2025 for the Omeo Suites Catalina Island located at 229 Metropole Ave. According to our review, the hotel was open and operating during this period. Under Section 3-3.407 of the City of Avalon Municipal Code, operators of transient rentals are required to report the total amount of rents charged and collected, as well as the amount of transient occupancy tax collected, and remit the tax collected, to the City on a monthly basis.

Under Municipal Code Sec. 3-3.409, if an operator fails or refuses to collect the transient occupancy tax, the Director of Finance shall proceed to dete1mine and assess against such operator the tax, interest, and penalties provided for by the provisions of the Municipal Code. The City has determined the amount of taxes owed to be $160,200.00, plus an original delinquency penalty of $16,020.00, a continued delinquency penalty of $17,622.00, and interest of $7,899.50 for amount due to the City of $201,741.50 as provided under Municipal Code Sec. 3-3.408. If you would like to appeal this amount assessed, you must submit an appeal in writing for a hearing on the amount assessed within IO business days after receipt of this notice otherwise the determined amount will be final and conclusive.

Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 -Avalon, CA 90704 (310) 510-0220

CITY OF AVALON
If you would like to resolve this matter prior to the Public Hearing, please provide the City with completed copies of the monthly transient tax reports, along with applicable tax remittances, to the City for the period of April 2024 through October 2025. If you believe that reports were previously submitted, please provide the City with copies of the reports, along with proof of payment.

Operators are required to maintain records of payments for a period of three years as outlined in Sec. 3-3.411 of the Municipal Code.

If you have any questions regarding reporting, or remitting transient occupancy taxes that are owed to the City of Avalon, please contact me directly by phone at 310-510-0220 extension 170 or via email at [email protected].

Sincerely,
Matthew Baker
Finance Director
Enclosure:
l. A val on Municipal Code: Sec. 3-1.116, Sec. 3-3 .40 I - 3 .424 Cc. David Maistros, City Manager
Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 -Avalon, CA 90704 (310) 510-0220 Chapter 3-1. Business Licensing
Article 1 . General Provisions
§ 3-1.116. Revocation or Suspension of Licenses.

City of Avalon, CA
Tuesday, December 2, 2025
[§ 9, Ord. 931-96, eff. September 19, 1996; amended 11-28-2023 by Ord. No. 1215-23, eff. December 28, 2023]
Any license issued under this Chapter may be revoked or suspended where:
(a) The licensee has violated any provision of the Avalon Municipal Code, state or federal laws or regulations;
(b) Where a license has been granted on false or fraudulent evidence, testimony or application; or (c) Where the licensee has violated the terms and conditions of the license, including but not limited to the timely payment of business license taxes required by this chapter.

All matters pertaining to revocation or suspension shall be referred by the Director of Finance to the City Council, with a written statement of the reasons for the proposed revocation or suspension. The City Council shall give reasonable notice to the licensee to appear before the City Council at a time and place set for the hearing, to show cause why the license shall not be revoked or suspended. The notice shall state the grounds for the complaint or reasons for the proposed revocation or suspension in clear and concise language. The notice shall be served upon the licensee personally or by mail not less than 10 and not more than 20 days prior to the hearing date. At the hearing, the licensee shall be given the opportunity to appear personally or through counsel, to be heard, to defend the charges and to call witnesses. Upon good cause shown, the licensee shall be entitled to a continuance until the next meeting of the City Council. After conducting such hearing, the City Council may revoke, suspend for a stated time period, or reinstate any license upon such terms and conditions as in the exercise of sound discretion is determined to be appropriate. The decision of the City Council shall be final and conclusive.

Chapter 3-3. Taxes
Article 4. Transient Occupancy Tax
§ 3-3.401. Title of Provisions.
[§ 1, Ord . 474]
This article shall be known as the Uniform Transient Occupancy Tax Law of the City. § 3-3.402. Definitions.
[§ 2, Ord. 474; §§ 1-3, Ord. 891-93, eff. February 18, 1993] For the purposes of this article, certain words and phrases used herein are defined as follows :
(a) HOTEL - Shall mean any structure, or any portion of any structure, which is occupied, or intended or designed for occupancy, by transients for dwelling, lodging, or sleeping purposes and shall include any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure, or portion thereof. (b) OCCUPANCY - Shall mean the use or possession, or the right to the use or possession of any room, or portion thereof, for dwelling, sleeping or lodging purposes. The Director of Finance may from time to time adopt administrative regulations specifying those services, goods, or other benefits related to the use or possession of the room, which are included within the meaning of "occupancy."
(c) OPERATOR - Shall mean the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this article and shall have the same duties and liabilities as his principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered to be compliance by both.
(d) PERSON - Shall mean any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee syndicate, or any other group or combination acting as a unit. (e) RENT - Shall mean the consideration charged for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts , cash , credits, property, and services of any kind or nature without deduction therefrom whatsoever. "Rent" includes the consideration charged for occupancy, as defined, regardless of whether named a fee, assessment, service charge, management fee, cleaning fee, or other expense. (f) TAX - Shall mean transient occupancy tax.
(g) TRANSIENT - Shall mean any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the provisions of this article may be considered.
§ 3-3.403. Imposition of Tax.
[§ 3, Ord. 47 4, as amended by§ 1, Ord. 508, eff. June 1, 1968; and § 1, Ord. 544, eff. January 1, 1972; § 1, Ord. 666, eff. August 15, 1979; § 4, Ord. 891-93, eff. February 18, 1993; § 1, Ord. 904-94, eff. April 14, 1994; § 1, Ord. 1022-04, eff. July 1, 2004]
For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of 12% of the rent charged for such occupancy. Such tax shall constitute a debt owed by the transient to the City, which debt shall be extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid; however, where the operator blocks a room or rooms at a discounted or wholesale rate to a third party who collects the rent from the transient, then the third party shall pay to the operator the tax on the actual rent paid by the transient to the third party. The third party shall pay the tax based on the rate which the operator would charge a transient if the operator rented the same room or rooms directly to a transient. § 3-3.404. Exemptions from Provisions.
[§ 4, Ord. 474)
No tax shall be imposed upon:
(a) Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax provided for in this article;
(b) Any Federal or State officer or employee when on official business; or (c) Any officer or employee of a foreign government, which officer or employee is exempt by reason of express provisions of Federal laws or international treaties.

No exemption shall be granted except upon a claim therefor made at the time the rent is collected and under penalty of perjury upon a form prescribed by the Director of Finance. § 3-3.405. Operator's Duties.
(§ 5, Ord. 474]
Each operator shall collect the tax imposed by the provisions of this article to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax, or any part thereof, will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner provided in this article. § 3-3.406. Registration and Permit.
[§ 6, Ord. 474; § 5, Ord. 891-93, eff. February 18, 1993) Every person desiring to engage in or conduct business as operator of a hotel renting to transients within the City shall file with the Director of Finance an application for a transient occupancy registration permit. Every application for such permit shall be made upon a form prescribed by the Director of Finance and shall set forth the name under which the applicant transacts or intends to transact business, the location of his place of business, the name and address of the property owner if the hotel and/or land is subject to a lease, and such other information as the Director of Finance may require. The application shall be signed by a natural person; by a member or partner if an association or partnership; by an executive officer if a corporation, and state the address where notices to such person or entity shall be sent. In addition , any corporation registered under the provisions of this chapter shall provide to the Director of Finance a current certified document each year from the Secretary of State listing the officers and agent for service of process of the corporation. Within 10 days after change of ownership of the business, the new operator shall file said application. The transient occupancy registration permit must be in effect at all times while a business subject to the chapter is in operation , and shall be at all times posted in a conspicuous place on the premises. The permit shall state the following:
(a) Name and address of the hotel;
(b) Name of the operator;
(c) Date on which the permit was issued;
(d) A statement as follows: "This Transient Occupancy Registration Permit signifies that the person named on the face hereof has fulfilled the requirements of the Transient Occupancy Tax Chapter by registering with the Director of Finance for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Director of Finance. The permit does not authorize any person to conduct any unlawful business or in an unlawful manner, nor operate a hotel without strictly complying with all applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of the City or any other agency." § 3-3.407. Reporting and Remitting.
[§ 7, Ord. 474; § 6, as amended by Ord. 891-93, eff. February 18, 1993; § 2, Ord. 928-96, eff. August 1, 1996]
The operator collecting the transient occupancy tax shall make a report upon such forms and setting forth such information as the Finance Director may prescribe and require, including, but not limited to, the total amount of rents charged and collected, the amount of transient occupancy tax collected for the prior month and occupancy data. He shall sign the report under penalty of perjury and deliver the report and tax remittance monthly to the Finance Director on or before the last business day of the month following the reported month. Remittance by check or money order shall be made payable to the City.

The Director of Finance may establish shorter reporting periods for any permit holder if he deems it necessary in order to assure collection and remittance of the tax. Reports and remittances shall be due immediately upon cessation of business for any reason. Remittance by check or money order shall be made payable to the City. All taxes collected by operators pursuant to this article shall be held in trust for the account of the City until payment thereof is made.
§ 3-3.408. Penalties and Interest.
[§ 8, Ord. 474; as amended by§ 7. Ord. 891-93, eff. February 18, 1993; § 3, Ord. 928-96, eff. August 1, 1996]
(a) Original Delinquency. Any operator who shall fail to remit any tax imposed by the provisions of this article within the time required shall pay a penalty in the amount of 10% of the tax in addition to the amount of the tax. No penalty shall accrue where the regulations in effect at the time the transient's payment was received by the operator did not provide for the application of the tax to such payment or where the operator has obtained a written ruling from the Director of Finance regarding the application of the tax to a particular charge. The Director of Finance shall provide a written ruling within five days of his receipt of a written request for a ruling . The Director of Finance's rulings shall be kept on file by the City's Finance Department in a separate book and shall be made available upon request. The Director of Finance may waive any or all of a penalty imposed where, in his sole discretion, he deems it to be appropriate.
(b) Continued Delinquency. Any operator who shall fail to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty in the amount of 10% of the tax in addition to the amount of the tax and the 10% penalty first imposed.
(c) Fraud. If the Director of Finance shall determine that the nonpayment of any remittance due pursuant to the provisions of this article is due to fraud, a penalty in the amount of 25% of the amount of the tax shall be added thereto in addition to the penalties set forth in subsections (a) and (b) of this section.
(d) Interest. In addition to the penalties imposed, any operator who shall fail to remit any tax imposed by the provisions of this article shall pay interest at the rate of 1/2 of 1 % per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
(e) Penalties for Failure to Timely File Complete Report. If any person shall fail or refuse to timely file a complete monthly report as required by § 3-3.407, there shall be a penalty assessed until a complete report is filed, in the amount of $30 per month or a prorated portion of the month, in addition to other penalties.
(f) Penalties Merged with Tax. Every penalty imposed, and such interest as accrues, pursuant to the provisions of this section shall become a part of the tax required to be paid by the provisions of this article.
§ 3-3.409. Failure to Collect and Report Tax.
[§ 9, Ord. 474}
If any operator shall fail or refuse to collect such tax and to make, within the time provided in this article, any report and remittance of such tax, or any portion thereof, required by the provisions of this article, the Director of Finance shall proceed in such manner as he may deem best to obtain the facts and information on which to base his estimate of the tax due. As soon as the Director of Finance shall procure such facts and information as he is able to obtain upon which to base the assessment of any such tax imposed and payable by any operator who has failed or refused to collect the same and to make such report and remittance, the Director of Finance shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by the provisions of this article. In the event such determination is made, the Director of Finance shall give notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of address. Such operator may, within 10 days after the service or mailing of such notice, make an application in writing to the Director of Finance for a hearing on the amount assessed. If an application by the operator for a hearing is not made within the time prescribed, the tax, interest, and penalties, if any, determined by the Director of Finance shall become final and conclusive and immediately due and payable. If such an application is made, the Director of Finance shall give not less than five days' written notice in the manner prescribed in this section to the operator to show cause at a time and place fixed in such notice why the amount specified therein should not be fixed for such tax, interest, and penalties. At such hearing the operator may appear and offer evidence why such specified tax, interest, and penalties shall not be so fixed . After such hearing the Director of Finance shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed in this section of such determination and the amount of such tax, interest, and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is filed as provided in § 3-3.410 of this article. § 3-3.410. Determinations of Director of Finance: Appeals. [§ 10, Ord. 474)
Any operator aggrieved by any decision of the Director of Finance with respect to the amount of such tax, interest, and penalties, if any, may appeal to the Council by filing a notice of appeal with the City Clerk within 15 days after the service or mailing of the determination of the tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed in this article for the service of a notice of hearing.

Any amount found to be due shall be immediately due and payable upon the service of notice. § 3-3.411. Records.
[§ 11, Ord. 4 7 4]
It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by the provisions of this article to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of any payment to the City, which records the Director of Finance shall have the right to inspect at all reasonable times.
§ 3-3.412. Refunds.
[§ 12. Ord. 474]
(a) Whenever the amount of any tax, interest, or penalty has been overpaid, or paid more than once, or erroneously or illegally collected or received by the City, such amount may be refunded as provided in subsections (b) and (c) of this section provided a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Director of Finance within three years after the date of payment. The claim shall be on forms furnished by the Director of Finance.
(b) Any operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established in a manner prescribed by the Director of Finance that the person from whom the tax has been collected was not a transient; provided, however, neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator. (c) A transient may obtain a refund of taxes overpaid, paid more than once, or erroneously or illegally collected or received by filing a claim in the manner provided in subsection (a) of this section but only when the tax was paid by the transient directly to the Director of Finance, or when the transient, having paid the tax to the operator, establishes to the satisfaction of the Director of Finance that the transient has been unable to obtain a refund from the operator who collected the tax.
(d) No refund shall be paid pursuant to the provisions of this section unless the claimant establishes his right thereto by written records showing entitlement thereto. § 3-3.413. Tax a Debt to City: Suits for Recovery.
[§ 13, Ord. 474]
Any tax required to be paid by any transient pursuant to the provisions of this article shall be deemed a debt owed by the transient to the City. Any such tax collected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any person owing money to the City pursuant to the provisions of this article shall be liable to an action brought in the name of the City for the recovery of such amount.
§ 3-3.414. Violations of Provisions.
[§ 14, Ord. 474]
Any operator or other person who fails or refuses to register as required, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Director of Finance, or who renders a false or fraudulent return or claim shall be guilty of a misdemeanor. Any person required to make, render, sign, or verify any report or claim and who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by the provisions of this article to be made shall be guilty of a misdemeanor. § 3-3.415. Revocation of Permit.
[§ 8, Ord. 891-93, eff. February 18, 1993)
Whenever an operator fails to comply with any provision of this article relating to transient occupancy taxes or any rule or regulation prescribed by the Director of Finance relating to such tax or registration permit, the Director of Finance shall hold a hearing, after giving the lessor, if applicable and the operator 10 days' written notice sent by certified mail specifying the time and place of hearing and requiring the operator to show cause why his permit or permits should not be revoked . After such hearing, the Director of Finance may suspend or revoke any one or more of the permits held by the operator. Within five days after the hearing, the Director of Finance shall give the operator written notice by certified mail of the suspension or revocation of the permit or permits.

The aggrieved operator may appeal the suspension or revocation of the permit or permits to the City Council by filing a notice of appeal in writing with the City Clerk within 15 days after the service or mailing of the notice of suspension or revocation. The findings of the Council shall be final and conclusive.

The Director of Finance shall not issue a new permit after revocation or lift a suspension of a permit until the operator has satisfied any outstanding debt to the City under this article, including penalties and interest. Where an operator has failed to timely remit the return or taxes more than two times in any calendar year, whether or not such failure has resulted in a suspended or revoked permit, the Director of Finance may send written notice to the operator requiring that such operator post a bond within 15 days of such notice, in a form approved by the City Attorney and in an amount equal to the preceding six months taxes collected. The bond shall remain in force until the operator has timely remitted returns and taxes for a continuous period of six months. Thereafter, the bond shall be released . The failure to post the bond within 15 days after such notice shall constitute a violation of this article. (1) Editor's Note: Prior ordinances codified herein include portions of Ordinance No. 474. § 3-3.416. Closure of Hotel Without Permit.
[§ 9, Ord . 891-93, eff. February 18, 1993]
During any period of time during which a permit has not been issued or is suspended, revoked or otherwise not valid, the Director of Finance may require that the hotel be closed. Notice of the closure shall be sent to the lessor, if applicable, and the operator by certified mail and shall be posted at the hotel. Any person who operates a hotel in violation of a notice of closure shall be guilty of a misdemeanor.
(1) Editor's Note: Prior ordinances codified herein include portions of Ordinance Nos. 508 and 666. § 3-3.417. Recording Certificate of Lien.
(§ 10, Ord. 891-93, eff. February 18, 1993]
If any amount required to be remitted or paid to the City under this article is not remitted or paid when due, the Director of Finance may, within three years after the amount is due file for recording with the Los Angeles County Recorder's Office a certificate specifying the amount of the tax, penalties and interest due, the name and address as it appears on the registration permit of the operator liable for the amount and the fact that the Director of Finance has complied with all provisions of this article in determining such amount. From the time of the filing for recording the amount shall constitute a lien upon all real property in the County, except a proprietary lease, owned by the operator. The lien shall have the force, effect and priority of a judgment lien and shall continue for 10 years from the time of filing of the certificate unless sooner released or discharged. § 3-3.418. Priority and Lien of Tax.
[§ 10, Ord. 891-93, eff. February 18, 1993]
(a) The amounts required to be remitted and/or paid by any operator under this article with penalties and interest shall be satisfied first in any of the following cases:
(1) Whenever the person is insolvent;
(2) Whenever the person makes a voluntary assignment of his assets; (3) Whenever the estate of the person in the hands of executors, administrators, or heirs is insufficient to pay all the debts due from the deceased; (4) Whenever the estate and effects of an absconding, concealed or absent person required to pay any amount under this article are levied upon by process law. This article does not give the City a preference over any recorded lien which attached prior to the date when the amounts required to be paid became a fien.
(b) The preference given to the City by this section shall be subordinate to the preferences given to claims for personal services by §§ 1204 and 1206 of the Code of Civil Procedure. § 3-3.419. Warrant for Collection of Tax.
[§ 10, Ord. 891-93, eff. February 18, 1993]
At any time within three years after any operator is delinquent in the remittance or payment of any amount herein required to be remitted or paid or within three years after the last recording of a certificate under§ 3-3.417, the Director of Finance may issue a warrant for the enforcement of any liens and for the collection of any amount required to be paid to the City under this article. The warrant shall be directed to any sheriff, marshal, or constable and shall have the same effect as a writ of execution.

The warrant shall be levied and sale made pursuant to it in the same manner with the same effect as a levy of and a sale pursuant to a writ of execution. The Director of Finance may pay or advance to the sheriff, marshal, or constable the same fees, commissions and expenses for his services as are provided by law for similar services pursuant to a writ of execution. The Director of Finance, and not the court, shall approve the fees for publication in a newspaper. § 3-3.420. Seizure and Sale.
[§ 10, Ord. 891-93, eff. February 18, 1993]
At any time within three years after any operator is delinquent in the remittance or payment of any amount, the Director of Finance may forthwith collect the amount in the following manner. The Director of Finance shall seize any property, real or personal, of the operator and sell the property, or a sufficient part of it, at public auction to pay the amount due together with any penalties and interest imposed for the delinquency and any costs incurred on account of the seizure and sale. Any seizures made to collect occupancy taxes due shall be only of property of the operator not exempt from execution under the provisions of the Code of Civil Procedure.
§ 3-3.421. Duties on Transfer of Business.
[§ 10, Ord. 891-93, eff. February 18, 1993]
(a) Registration. Within 10 days after change of ownership of the business, the new operator shall file said application.
(b) Successor's Liability - Withholding by Purchaser. If any operator liable for any amount under this article sells out his business, his successor or assigns shall withhold sufficient monies from the purchase price to cover such amount until the former operator produces a receipt from the Director of Finance showing that it has been paid or a certificate stating that no amount is due. (c) Liability of Purchaser - Release. If the purchaser of a hotel operator's business fails to withhold part of the purchase price as required, he shall become personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price, valued in money. Within 60 days after receiving a written request from the purchaser for a certificate, or within 60 days from the date the former hotel operator's records are made available for audit, whichever period expires later, but in any event not later than 90 days after receiving the request, the Director of Finance shall either issue the certificate or mail notice to the purchaser at his address as it appears on the records of the Director of Finance of the amount that must be paid as a condition of issuing the certificate. Failure of the Director of Finance to mail the notice will release the purchaser from any further obligation to withhold the purchase price as above provided. The time within which the obligation of the successor may be enforced shall start to run at the time the operator sells his business or at the time that the determination against the operator becomes final, whichever event occurs the later.
§ 3-3.422. (Reserved)
§ 3-3.423. Withhold Notice.
(§ 10, Ord. 891-93, eff. February 18, 1993)
If any person or operator is delinquent in the remittance or payment of the amount required to be remitted or paid by him or in the event a determination has been made against him for the remittance of tax and payment of the penalty, the City may, within three years after the tax obligation became due, give notice thereof personally or by registered mail to all persons, including the state or any political subdivision thereof, having in their possession or under their control any credits or other personal property belonging to the taxpayer. After receiving the withholding notice, the person so notified shall make no disposition of the taxpayer's credits, other personal property or debts until the City consents to a transfer or disposition or until 60 days elapse after the receipt of the notice, whichever expires earlier.

All persons, upon receipt of said notice, shall advise the City immediately of all such credits, other personal property or debts in their possession, under their control or owing by them . If such notice seeks to prevent the transfer or other disposition of a deposit in a bank or other credits or personal property in the possession or under the control of the bank, to be effective the notice shall be delivered or mailed to the branch or office of such bank at which such deposit is carried or at which such credits or personal property is held. If any person so notified makes transfer or disposition of the property or debts required to be held hereunder during the effective period of the notice to withhold, he shall be liable to the City to the extent of the value of the release up to the amount of the indebtedness owned by the taxpayer to the City.
§ 3-3.424. Stacking Prohibited.
(§ 1, Ord. 1026-04, eff. September 2, 2004)
It is a violation of this chapter for any person to knowingly aid or engage in the practice commonly known in the lodging industry as "stacking." As used herein, "stacking" occurs when a transient occupant who is the registered occupant of a transient occupancy unit allows other persons to share occupancy of that unit for overnight sleeping on any night for which such other person or persons are not registered. Any transient who allows stacking to take place in the unit for which that person is registered, and any transient who occupies a unit knowing that his or her occupancy has not been reported to the owner or operator or has not been paid for, shall be in violation of this section. Any such violation shall be prosecuted as a misdemeanor, or, in the discretion of the prosecuting attorney, may be prosecuted as an infraction.
(a) Notice. In order to apprise transient occupants of potential violations of this section, all hotel and other transient occupancy facility operators are encouraged to incorporate language similar to the following in their registration documents:
"Your room/unit is to be occupied by not more than __ persons. The Avalon Municipal Code prohibits housing additional unregistered guests in a unit."

CITY OF AVALON
P.O. BOX 707
AVALON, CA 90704
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OMEO SUITES CATALINA ISLAND
134 W. OLIVE AVE
MONROVIA. CA 91016
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Business License Revocation - OMEO Suites (DBA Casa Mariquita) Omeo Suites Catalina lsland.pdf
Attached please find a copy of a letter sent via certified mail notifying you that OMEO Suites Catalina Island, OBA Casa Mariquita, Business License 011090 is scheduled for revocation at a Public Hearing on Tuesday, December 16, 2025, at the regularly scheduled City Council meeting.

The City is recommending revocation to City Council due to failure to timely report and remit transient occupancy taxes to the City since March 2024.

If you disagree with the City's position, at the hearing you will be given the opportunity to appear personally or through counsel, to be heard, defend the charges , and call witnesses to show cause why the license should not be revoked.

If you agree with the City's position regarding the applicability of tax, I would like to resolve this matter prior to the Public Hearing. Please complete the monthly transient tax form and remit payment for the applicable taxes for the period of March 2024 through October 2025. I have included a link to the City's online payment portal below.

Ea.y.J)_r1H n.e...L A vaJQ_n._, CA
Thank you for your attention to this matter.

Regards,
Matthew Baker
Matthew Baker I Finance Director
Finance Department
City of Avalon
l:3(310) .SlO 0220 x170
t;:1 [email protected]
Qwww.cityofavalon.gov
9 410 Avalon Ccrnyon Road
PO Box 707
Avalon, CA 90704

CITY OF AVALON CITY COUNCIL
MEETING DATE: December 16, 2025 AGENDA ITEM: \ \ ------- ORIGINATING DEP: Finance CITY MANAGER: __ \)\l ~ ~'t,\_ -- PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Revocation of Business Licenses - OMEO Hotel Catalina RECOMMENDED ACTION(S): (1) Hear a presentation on the reasons for the proposed revocations of the business licenses for the OMEO Hotel Catalina (Business License No. 011107). (2) Open the Public Hearing to hear public comments. (3) Close the Public Hearing. (4) If consensus, revoke the business license for the OMEO Hotel Catalina (Business License No. 011107).

REPORT SUMMARY: On June 9, 2022, City Staff approved the business license application for the OMEO Hotel Catalina (Business License No. 011107) located at 129 Whittley Avenue.

The license covered the operation of a thirty-one (31) room hotel. City Staff has not been able to locate a copy of the business license application; however, Tin Jon Syiau was identified as the owner of the business in the City's business license database.

Hotel operators are required to report and remit applicable transient occupancy taxes to the City on a monthly basis as outlined in Section 3-3.407 of the Avalon Municipal Code. OMEO Hotel Catalina has failed to report and remit applicable taxes for the period of April 2024 through May 2025. The hotel was operating as evidenced by online reviews identified by the City during this period. The City has made multiple attempts to contact the owner and resolve this matter prior to pursuing revocation , including through notices of violation sent via certified mail to the address on file in August 2024 and November 2024. Notification letters have been included as attachments to this staff report.

As required under the Municipal Code, the City mailed a letter on December 2, 2025 via certified mail to the address on file with the City, notifying the license holder of the public hearing for revocation of the business license. As of the date of publication of the agenda, the City has not received a response from the business owner regarding the revocation or assessment of taxes owed .

Code Enforcement delivered a copy of the revocation letter to the business location and the current operator responded , notifying the Finance Department that a different business has been operating out of the location since June 2025. The City had previously received a business license application from the new operator to operate from this location; however, the application had not been approved as the property required an inspection by the City's Building Official and Fire Department as a condition of approval. The operator was advised to cease and desist all business operations until these inspections have occurred and a business license has been issued. City officials inspected the premises on December 10, 2025 and tax payments have been received from the current operator for the period of June 2025 through November 2025. However, the business license is currently pending as of the date of this report.

City Staff is recommending the revocation of the existing business license for the OMEO Hotel Catalina (Business License 011107) due to failure to comply with Avalon Municipal Code Section 3-3.407 as provided under Avalon Municipal Code Section 3-1 .116(a).

GOAL ALIGNMENT: Fiscal responsibility
FISCAL IMPACTS: Lost revenue due to failure to report and remit taxes owed to the City.

FOLLOW UP ACTION: City Staff will work with the City Attorney to pursue collection of assessed taxes owed to the City.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Notice of Violation sent via certified mail on August 21 , 2024

2. Notice of Violation sent via certified mail on November 15, 2024;

3. Notice of Revocation sent via certified mail on December 2, 2025; August 21, 2024
Omeo Hotel Catalina
134 W. Olive Ave
Monrovia, CA 91016
Sent via Certified USPS Mail

CITY OF AVALON
Re: Notice of Transient Rental Tax Compliance Violations - 129 Wltittley Ave Avalon CA 90704.B/L#Ol1107
Dear Tin Jon Syiau:

The City of Avalon does not have record of receipt of monthly Hotel transient occupancy tax reports and tax remittances for the period of April, May and June 2024 for the propetty at 129 Whittley Ave.

Your prope1ty has been identified as an active rental online. According to our review, there are confirmed transient stays at your property https://www.omeo.vip/ over the period requested.

Under Section 3-3.407 of the City of Avalon Municipal Code, operators of transient rentals are required to report the total amount ofrents charged and collected, as well as the amount of transient occupancy tax collected, and remit the tax collected, to the City on a monthly basis. Payment of transient tax is now available on the City's website https://www.cityofavalon.com/308/PayQnE!!~- I have also included a copy of the transient tax form that may be used for repot1ing of remittances made by cash or check.

Please provide the City with completed copies of the monthly transient tax rep011s, along with applicable tax remittances, to the City for the period of April, May and June 2024. If you believe that reports were previously submitted, please provide the City with copies of the reports, along with proof of payment. Operators are required to maintain records of payments for a period of three years as outlined in Sec. 3-3.411 of the Municipal Code. If you take no action within the next 30 days, the City shall proceed to determine and assess the tax, interest and penalties as provided in Sec. 3-3.409 of the Municipal Code.

If you have any questions regarding reporting, or remitting transient occupancy taxes that are owed to the City of Avalon, please contact the Finance Department by phone at 310-510-0220 or via email at [email protected].
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Matthew Baker
Finance Director
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134 W. Olive Ave
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November 15, 2024
Omeo Hotel Catalina
134 W. Olive Ave
Monrovia, CA 91016
Sent via Certified USPS Mail

CITY OF AVALON
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Re: Notice of Transient Rental Tax Compliance Violations - 129 Whittley Ave Avalon CA 90704. BIL#0ll 107
Dear Tin Jon Syiau:

The City of Avalon does not have record of receipt of monthly hotel transient occupancy tax reports and tax remittances for the period of April 2024 through September 2024 for the Hotel Catalina located at 129 Whittley Ave.

According to our review, the hotel was open and operating during this period. Under Section 3- 3 .407 of the City of Avalon Municipal Code, operators of transient rentals are required to report the total amount of rents charged and collected, as well as the amount of transient occupancy tax collected, and remit the tax collected, to the City on a monthly basis.

Under Municipal Code Sec. 3-3.409, if an operator fails or refuses to collect the transient occupancy tax, the Director of Finance shall proceed to estimate the tax assessment due against such operator including the interest and penalties provided for by the provisions of the Municipal Code. I have estimated the amount of taxes owed to be $72,780.65, plus an original delinquency penalty of $7,278.08, a continued delinquency penalty of $8,005.87, and interest of $1,179.56 for a total amount due to the City of $89,244.16 as provided under Municipal Code Sec. 3-3.408. If you would like to appeal this amount assessed, you must submit an appeal in writing for a hearing on the amount assessed within 10 business days after receipt of this notice otherwise the determined amount will be final and conclusive.

Sincerely,
-rl~b~
Matthew Baker
Finance Director
Cc. David Maistros, City Manager
Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 - Avalon, CA 90704 (310) 510-0220

CITY OF AVALON
P.O. BOX 707.

AVALON, CA 90704
Omeo Hotel Catalina
134 W. Olive Ave
Monrovia, CA 91016
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Omeo Hotel Catalina
134 W. Olive Ave
Monrovia, CA 91016
Sent via Certified USPS Mail

CITY OF AVALON
Re: Notice of Business License Revocation and Assessment of Taxes Owed Dear Tin Jon Syiau:

This letter serves as formal notification that the Business License for Omeo Hotel Catalina (Business License 0 111107) is scheduled for revocation at a Public Hearing on Tuesday, December 16, 2025 at the regular City Council Meeting, unless corrective action is taken prior to the meeting date. Under Avalon Municipal Code (AMC) Section 3-1.116, business licenses may be revoked for violation of any provision of the AMC. The Business License for the Omeo Hotel Catalina is scheduled for revocation due to failure to comply with AMC Section 3-3.407 regarding the monthly reporting and remitting of transient taxes owed to the City. At the hearing, you will be given the opportunity to appear personally or through counsel, to be heard, defend the charges and to call witnesses to show cause why the license should not be revoked.

The City of Avalon does not have record of receipt of monthly hotel transient occupancy tax reports and tax remittances for the period of April 2024 through October 2025 for the Hotel Catalina located at 129 Whittley Ave. According to our review, the hotel was open and operating during this period. Under Section 3-3.407 of the City of Avalon Municipal Code, operators of transient rentals are required to report the total amount of rents charged and collected, as well as the amount of transient occupancy tax collected, and remit the tax· collected, to the City on a monthly basis.

Under Municipal Code Sec. 3-3.409, if an operator fails or · refuses to collect the transient occupancy tax, the Director of Finance shall proceed to determine and assess against such operator the tax, interest, and penalties provided for by the-provisions of the Municipal Code. The City has detennined the amount of taxes owed to be $169,700.00, plus an original delinquency penalty of $16,970.00, a continued delinquency penalty of $18,667.00, and interest of $8,501 .50 for amount due to the City of $213,838.50 as provided under Municipal Code Sec. 3-3.408. If you would like to appeal this amount assessed, you must submit an appeal in writing for a hearing on the amount assessed within 10 business days after receipt of this notice otherwise the detennined amount will be final and conclusive.

Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 - Avalon, CA 90704 (310) 510-0220

Operators are required to maintain records of payments for a period of three years as outlined in Sec. 3-3.411 of the Municipal Code.

Sincerely,
Matthew Baker
Finance Director
Enclosure:

1. Avalon Municipal Code: Sec. 3-1.116, Sec. 3-3.401 - 3.424 Cc. David Maistros, City Manager
Avalon City Hall - 410 Avalon Canyon Road - P.O. Box 707 -Avalon, CA 90704 (310) 510-0220

CITY OF AVALON
P.O. BOX 707
AVALON, CA 90704

OMEO HOTEL CATALINA
134 W. OLIVE AVE
MONROVIA, CA 91016
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CITY OF AVALON CITY COUNCIL

ACTING AS SUCCESSOR AGENCY AND AVALON HOUSING AUTHORITY MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

December 16, 2025
Administration
Matthew Baker, Finance Director
AGENDA ITEM: / 2-
CITY MANAGER: OOtl
Multi-year Renewal Agreement with RSG, Inc. through FY 2028-29 for Successor Agency and Housing Authority Consulting Services RECOMMENDED ACTION: (1) Make an affirmative finding to dispense with a competitive procurement process due to economic efficiency as outlined in Avalon Municipal Code 3-

4.111 (c). (2) Authorize the City Manager/Agency Director to enter into a three year contract with RSG, Inc., to provide Successor Agency consulting services through FY 2028-29 in an amount not-to-exceed $25,000 per year ($75,000 over length of contract); and (3) Authorize the City Manager/Agency Director to enter into a three year contract with RSG, Inc., to provide Housing Authority consulting services through FY 2028-29 in an amount not-to-exceed $10,000 per year ($_30,000 over length of contract),
REPORT SUMMARY: RSG has served as the Avalon Successor Agency's and Avalon Housing Authority's consultant since the dissolution process began in 2012. It has a longstanding relationship consulting the City on community development related matters such as housing, economic development and finance. As such, a competitive market for these services does not exist as RSG is in a unique position given it's successful working relationship with the City ..

RSG has helped Avalon with several items required by State law in the redevelopment dissolution process, such as preparing the annual ROPS, responding to inquiries from County and State agencies, assisting with reviews of Successor Agency expenses, reconciling cash balances and advising on various financial questions. RSG has also assisted the Housing Authority with filing multiple annual reports and ensuring that expenditures comply with legal requirements.

The City Council, as the Successor Agency Board, is being asked to consider a proposal from RSG to continue providing Successor Agency and Housing Authority consulting services through Fiscal Year 2028-29. The Successor Agency consulting services expenditures are included in the ROPS Administrative Budget.

Due to their history with the City and understanding of the nuances of Avalon , City Staff believe a competitive market does not exist and the City will not gain a competitive advantage by using a formal contract bid or other bid procedure for this contract. City Staff recommends the City Council makes the affirmative finding to dispense with a competitive procurement process due to economic efficiency as outlined in Avalon Municipal Code 3-4.111 (c). Another consultant would take time to "get up to speed" on the City's history and needs, which would be unnecessarily costly.

Scope of Work
RSG has submitted proposals (attached) to provide redevelopment dissolution services and also Housing Authority annual reporting and strategic planning services. The attached proposals detail the scope of services; however, it generally includes:
• Assisting with the County review of ROPS expenses
• Reviewing future RPTTF (property tax) distributions for accuracy • Assisting with the completion of a Last and Final ROPS • Preparing the Housing Authority Annual Report due October 1 each year and the Housing Successor Annual Report due December 31 each year • Strategic planning and advisory services related to Successor Agency and Housing Authority finances and program implementation
• Responding to inquiries and attending meetings as necessary RSG has proposed a total not-to-exceed budget of $75,000 over the next three fiscal years ($25,000 per year for Redevelopment Dissolution services and $10,000 per year for Housing Authority services), billed on a time and materials basis. This matches the budget for RSG's prior contract.

GOAL ALIGNMENT: Timely reporting as required by the State.

FISCAL IMPACTS: Consulting fees are included in the FY26 budget in Successor Agency account 13625-5005; and , Housing Authority account 15425-5005.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Potential delays in reporting to the State and County.

FOLLOW UP ACTION: City Manager/Agency Director to approve and authorize RSG, Inc., to proceed per the attached proposal.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: Proposals for RSG, Inc., Successor Agency and Housing consulting services.
2 BETTER COMMUNITIES.

SOLDER FUTURES,
November 73, 2025
David Maistros, City Manager
Matthew Baker, Finance Director

CITY OF AVALON / SUCCESSOR AGENCY TO ACIA
470 Avalon Canyon Road
P.O. Box 707
Avalon, CA 90704
Via Electronic Mail
PROPOSAL FOR FY 2026-27 THROUGH 2028-29 SUCCESSOR AGENCY SERVICES Dear Mr. Maistros and Mr. Baker:

It has been our great pleasure to serve the City of Avalon ("City"). Successor Agency to the Avalon Community Improvement Ag ency ("Successor Agency") since the dissolution process began in 2072. Thank you for the opportunity to present t his proposal for continued redevelopment dissolution services. The Scope of Services below d etai ls RSG's proposed technical, m anagement, and administrative services related to w inding down the affairs of the former AC IA, respondi ng to ongoing reporting requirements, conducting strategic planning and financia l analyses, and providing other services as directed by staff through Fi scal Years 2026-27 to 2028-29.

SCOPE OF SERVICES
The proposed Scope of Services is based upon our experience w ith the Successor Agency and upcoming tasks that we have identified. RSG is happy to discuss modifications to the scope as needed to satisfy t he Successor Agency's needs.

RSG has ident ified the follow ing tasks:

Task l: Budget and Cash Flow Work
RSG wil l continue to m aintai n a worki ng cash flow model for the Successor Agency to anticipate any future budget shortfal ls and ensure that obl igations can be met. RSG will assist the Successor Agency in worki ng to close any budget gaps by employing the variety of m ethods. RSG w ill also review the County Auditor-Controller's January and June RPTTF distributions to ensu re accuracy, including updates the Successor Agency's long-term cash flow based on actual revenues and expenditures.

Task 2: Complete Annual ROPS and accompanying Administrative Budgets The Successor Agency must annually submit a Recognized Obligatio n Payment Schedule ("ROPS") to the Los Angeles County Fourth Supervisorial District Consolidated Oversight Board ("Oversight Board") and Department of Finance. RSG w ill assist the Successor Agency in completing the 2027-28 thro ugh 2029-30 ROPS or the Last and Fina l ROPS if eligible. Should an issue arise during the Department of Finance's review of the ROPS, RSG would assist the David Maistros and Matthew Baker

CITY OF AVALON/SUCCESSOR AGENCY TO AC IA
November 73, 2025

Page 2 ends

Successor Agency in drafting a Meet and Confer request and is avai+able to attend the meeting.

The Successor Agency is allowed to amend the ROPS once during the period. RSG can assist the Successor Agency if this need arises.

The Successor Agency must submit an annual administrative budget supporting the use of the annual administrative allowance allowed by law. RSG will assist the Successor Agency in preparing the annual administrative budget for fiscal years 2027-28 through 2029-30, which will be submitted along w ith ROPS. RSG will attend the Oversight Board meetings for both these items and prepare related staff reports and reso lutions.

Task 3: Assist with County PPA
The differences between actual payments and past estimated and approved obligations on the ROPS shall be annually submitted by the Successor Agency to the Los Angeles County Auditor-Controller on October 7 each year for review and adj ustment to future distributions.

RSG wil l assist the Successor Agency with this process and coordinate with the County. This includes assisting the Successor Agency with payment verification documents as req uested by the County.

Task 4: Attend Meetings as Necessary
RSG will make a staff member available to the Successor Agency should they need assistance at any Successor Agency, Oversight Board, or DOF meetings.

Task 5: Additional Administrative Services as Needed
RSG will assist the Successor Agency with any additional administrative tasks as they arise and respond to general inquiries from DOF and other interested parties.

ESTIMATED BUDGET & FEE SCHEDULE
RSG estimates a total not-to-exceed budget of $75,000 ($25,000 for each year for the next three fiscal years) for the Scope of Services as outlined in the table below. This includes cost allocations for travel to meetings. These services may be paid from the Successor Agency's administrative cost allowance. Our services wou ld be charged on a time-and-materials basis, in accordance with our current fee schedule:

Fee Schedu le
Principal $305
Director $295
Senior Associate $250
Associate $205
Senior Analyst $785
Ana lyst $770
Research Assistant $745
Technician $720
Clerical $700
Reimbursable Expenses Cost plus 70%
David Maistros and Matthew Baker

CITY OF AVALON/SUCCESSOR AGENCY TO ACIA
November 73, 2025
Page3
RSG does not charge clients for travel or mileage (except direct costs related to field work/surveys), parking, standard telephone/fax expenses, general postage or incidental copies.

However, we do charge for messenger services, overnight shipping/express mail costs and teleconferencing services. Any third-party data required may also be charged to the client, typical examples include copies of the equalized assessment roll and Costar Market data. We also charge for copies of reports, documents, notices, and support material in excess of five (5) copies. These costs are charged back at the actual expense plus a 70% surcharge.

RSG charges our services on a time and materials basis and the City will only be billed for time spent on these services. RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance. Invoices identify tasks completed to date, hours expended, and the hourly rate. Our Federal Tax ID is 95-3435849.

This engagement would be overseen by Tara Matthews, Principal-in-Charge and managed by Alexandra Lawrence, Director. Mrs. Matthews has worked with Avalon since the dissolution of redevelopment in 2072 and is very familiar with the agency's history and needs. Additional support staff may be assigned as necessary.

We appreciate the opportunity to submit our proposal to the City of Avalon and its agencies.

If this proposal is acceptable as written, please sign where indicated and return to our office at your earliest convenience. If you have any questions, please do not hesitate to contact Tara at (774) 376-2777
Sincerely,
RSG, Inc.
iOM t \l)oj),:~
Tara Matthews
Principal
APPROVED AND AUTHORIZED TO PROCEED:

Signature:

Printed
Name:

Title:

Date:

B~TT~R COMMUNrflES.

BOLDER FUTURES.

November 73, 202S
David Maistros, City Manager
Matthew Baker, Finance Director

CITY OF AVALON/ HOUSING AUTHORITY
470 Avalon Canyon Road
P.O. Box 707
Avalon, CA 90704
Via Electronic Mail
PROPOSAL FOR HOUSING AUTHORITY CONSUL TING SERVICES FOR FY 2026-27 THROUGH 2028-29
Dear Mr. Maistros and Mr. Baker:

Thank you for the opportunity to continue serving the City of Avalon ("City"). Successor Agency to the Avalon Community Improvement Agency ("Successor Agency"). and Housing Authority of the City of Avalon ("Housing Authority") with redevelopment dissolution and housing administration services. The Scope of Services below details RSG's proposed services related to preparation of the Housing Authority and Housing Successor Annual Reports & strategic planning.

SCOPE OF SERVICES

HOUSING AUTHORITY ANNUAL REPORTING & STRATEGIC PLANNING

7. Prepare the FY 202S-26 through 2027-28 Housing Authority Annual Report due by October 7 annually and Housing Successor Agency Annual Report due by December 37 annually;

2. Strategic planning and/or project formulation for future housing projects, including analysis required to program the proportional expenditure of Low-and-Moderate Income Housing Asset Fund ("LM IHAF") monies subject to Senate Bill 347;

3. Financial support or analysis re lated to the management of the LM IHAF;

4. Attend meetings as requested by staff; and
S. Assist with other tasks as needed.

ESTIMATED BUDGET & FEE SCHEDULE
RSG estimates a total not-to-exceed budget of $30,000 ($70,000 for each year for the next three fiscal years). This includes cost allocations for travel to meetings. Activities pertaining to the scope of services may be paid from the Successor Agency's administrative cost allowance.

Our services would be charged on a time-and-materials basis, in accordance with our current fee schedule provided on the fol lowing page:

SAN D I EGO l_OS A N GELES OAKI_ AND
170 Euca lyptus Ave, Suite 200, Vista, CA 92084 I 714.541.4585 I rsgsolutions.com David Maistros and Matthew Baker
City of Avalon
November 13, 2025

Page 2 ends

Principal
Director
Senior Associate
Associate
Senior Analyst
Analyst
Research Assistant
Technician
Clerical
Fee Schedule
Reimbursable Expenses
$305
$295
$250
$205
$785
$770
$745
$720
$700
Cost plus 70%
RSG does not charge clients for travel or mileage (except direct costs related to field work/surveys). parking, standard telephone/fax expenses, general postage or incidental copies.

This engagement would be overseen by Tara Matthews, Principal-in-Charge, and managed by Alex Lawrence, Director. Ms. Matthews has worked with Avalon since the dissolution of redevelopment in 2072 and is very familiar with the agency's history and needs. Additional support staff may be assig ned as necessary.

We appreciate the opportunity to submit our proposal to the City of Avalon and its agencies.

Sincerely,
RSG, INC.

Tara E. Matthews
Principal
David Maistros and Matthew Baker
City of Avalon
November 73, 2025

Page 3 ends

APPROVED AND AUTHORIZED TO PROCEED:

Signature:

Printed
Name:

Title:

Date:

MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
December 16, 2025
Administration
David Maistros, City Manager
AGENDA ITEM: - ~,2~-
CITY MANAGER: ~
Carnival Cruise Line Preferential Access Agreement
RECOMMENDED ACTION(S): Authorize the City Manager to execute a Preferential Access Agreement with CCL Cruise Line (Carnival).

REPORT SUMMARY: During the July 15, 2025 City Council Meeting , the City reviewed proposals for like terms from Disney, Carnival and Royal Caribbean in order to establish parameters for the framework for negotiating a more definitive Port Agreement with cruise ship partners. The Port Agreements are intended to memorialize expectations and commitment between the City and the cruise ship partner, including , but not limited to, establishing limitations on capacity of visiting cruise ship and providing a "preferential" day of call for a premium wharfage.

At this time, negotiations with CCL Cruise Lines (Carnival) have resulted in an agreement addressing and incorporating all of the relevant terms previously established. Staff recommends authorizing the City Manager to execute a Preferred Access Agreement with CCL Cruise Lines with the following terms:
- Initial term length of five years commencing upon execution of the Agreement and ending September 30, 2030, with two additional five-year renewal options. - Preferential scheduling for Wednesdays year-round.
- CCL Cruise Lines proposes to remit a Cruise Line Fee equal to the City Wharfage Rate plus an additional Passenger Service Charge in the amount of One Dollar and Fifty cents ($1.50) for each passenger on the manifest as consideration for preferential scheduling . o This rate will be subject to annual adjustments equal to 2.5% per year. - CCL Cruise Lines agrees to limit the size of the vessels visiting Avalon under the agreement to the "Sunshine Class" or equivalent vessels that hold a passenger count of 3,000 or less.
- CCL Cruise Lines agrees to implement a "Guest Code of Conduct" to govern the behavior of CCL guests while visiting Avalon .

A critical component of this Agreement limits visiting vessels to a maximum passenger capacity of approximately 3,000 passengers Currently, CCL Cruise Lines has multiple sized vessels visiting Avalon including the Firenze that can hold up to 5,000 passengers. As a result of negotiation of this Preferential Access Agreement, CCL has already established a good-faith commitment to address the concerns of the City by announcing the repositioning of the Firenze to the east coast. Though the capacity of these vessels is significantly less than the capacity of other cruise ships that currently visit Avalon , the proposed increased wharfage rate and Passenger Service Fee is anticipated to offset any potential loss of wharfage revenue associated with diminished passenger counts. Additionally, smaller capacity ships should provide an overall more enjoyable experience for passengers as well as other Island visitors and residents. The reduced crowds will result in less congestion , greater activity opportunities, and quicker queuing at the Cabrillo Mole.

All port agreements entered with any cruise line will align with City of Avalon Resolution No. 24- 34 - a resolution that establishes guidelines for approving cruise ship visitation in Avalon.

Per the resolution :
•
•
•
•
Number of regularly scheduled cruise ship vessels shall not exceed 3 per week during the Summer Season (Memorial Day to Labor Day) without final written approval of the City Manager and Harbor Master.

No cruise ship vessels shall be allowed on the weekends during the Summer Season (Memorial Day to Labor Day) or during special event weekends - such as Jazz Traxx - without final written approval of the City Manager and Harbor Master.

Number of regularly scheduled cruise ship vessels shall not exceed 3 per week during the "Off Season" (Labor Day to Memorial Day) without final written approval of the City Manager and Harbor Master.

Repositioning , infrequent, or small cruise ship vessels (1,000 passengers or less) may be considered for visitation by the Harbor Master, taking into account the day requested , holidays, event(s), harbor activity(ies), impacts to public safety, etc.

In order to stay in compliance of Resolution 24-34, staff does not anticipate recommending any additional agreements to City Council in the near future.

FISCAL IMPACTS: Staff anticipate the action may have a net neutral effect on future fiscal year wharfage revenue projections.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will not have a port agreement with CCL Cruise Lines.

FOLLOW UP ACTION: Execute the attached Preferential Access Agreement.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: Resolution No. 24-34; Preferential Access Agreement.

PREFERENTIAL ACCESS AGREEMENT
THIS AGREEMENT is dated as of the date of full execution hereof ("Effective Date"), by and between The City of Avalon {hereinafter "City") and CCL Cruise Line (hereinafter "CCL").

RECITALS
A. City owns, operates and manages the port in the City of Avalon, CA designed for the arrival and departure of vessels generally described as the Cabrillo Mole Ferry Terminal including four docks and "Float 5" utilized for berthing tender and ferry boats along with all structures, equipment, and other facilities, all as more particularly described and identified herein collectively as (the "Terminal").

B. City also manages the three anchorage points described in Exhibit A attached hereto (collectively, the "Anchorage", and collectively with the Terminal hereinafter referred to as the "Port"), where cruise lines anchor their ships when calling on the City as a port of call.

C. CCL operates cruise ships worldwide, utilizing cruise ship berths, terminals, and anchorage points in ports around the world, including the Port; and D. City and CCL desire to continue and enhance their long-standing relationship through the grant by City to CCL of certain "Preferential Rights", as more fully described in Article 3 of this Preferential Access Agreement (this "Agreement").

In consideration of the foregoing, and in consideration of the mutual representations, promises, covenants, agreements, terms, conditions, provisions and other consideration herein contained, City and CCL do hereby covenant and agree as follows:

1. TERM

1.1. le.rm. The term of this Agreement will begin on the Effective Date and, unless sooner terminated by law or in accordance with the provisions of this Agreement, end September 30, 2030 ("Term"). Each twelve (12) month period from October 1 to the following September 30 during the Term will be considered a "Contract Year", e.g., the period from October 1, 2027 through September 30, 2028 shall be referred to as the Contract Year 2027-28.

1.2. ~-CCL and City may mutually extend the Term up to two (2) times, each for a period of five (5) additional Contract Years (each, a "Renewal Period"), by giving written notice to City no earlier than one (1) year prior to the end of the Term (and subsequent Renewal Period if the Agreement is extended). If CCL elects to extend the Term as set forth above, this Agreement will continue in full force and effect for the Renewal Period pursuant to the terms and conditions of this Agreement.
2 . 1 . .E.e..e..s_.

2.1.1. 2. PORT FEE; MINIMUM ANNUAL GUARANTEE
CCL agrees to pay to City:
(i) The cruise ship wharf age rate applicable to all cruise ships, as codified by the Avalon Municipal Code from time to time (the "City Wharfage"). CCL acknowledges the current City Wharfage is Five dollars ($5.00) per manifested passenger and the City Wharf age is scheduled to increase to Seven dollars and fifty cents ($7.50) on January 1, 2026; plus (ii) The medical tax of Two dollars ($2.00) (Measure H) per manifested passenger; plus
(iii) An amount equal to One dollar Fifty cents ($1.50) (the "Passenger Service Charge"). The City Wharfage and Passenger Service Charge is hereinafter collectively referred to as the "Cruise Line Fee" and shall be for the Preferential Rights set forth in Section 3 of this Agreement.

The City Wharf age (including the medical tax) and Passenger Service Charge will be applied upon each manifested guest on a CCL vessel which makes a call at the Port during the Term of this Agreement; provided however, that the Passenger Service Charge shall not apply to any calls by CCL that occur before September 30, 2027.

For the avoidance of doubt, for all CCL calls to the Port between the Effective Date and September 30, 2027, the City may only collect, and CCL is only obligated to remit, the City Wharfage plus medical tax for each manifested 2 2.1.2.

2.1 .3.
passenger on such CCL vessel visiting the Port. For all CCL calls occurring on or after October 1, 2027, City may collect, and CCL is obligated to remit, the City Wharfage plus the Passenger Service Charge for each manifested passenger on such CCL vessel visiting the Port.

Beginning with Contract Year 2028-29, City may increase the City Wharfage rate charged to CCL by no more than two and one-half percent (2.5%} each Contract Year. City will provide CCL written notice of each such adjustment to the Cruise Line Fee no less than twelve (12) months prior to the beginning of the Contract Year for which any such adjustment is effective.

City shall submit a detailed invoice to CCL for the Cruise Line Fee, including details on the applicable City Wharfage and Passenger Service Charge (if any), promptly after each CCL vessel call at the Port. CCL shall pay each undisputed invoice to the extent appropriate within sixty (60) days after receipt of each invoice issued by City. If CCL fails to make appropriate payment on an invoice within thirty (30) days after receipt of written late notice from City, City may suspend CCL's right to use any facility within the Port until payment by CCL of the applicable invoice. All invoices shall be submitted to CC L's current port agent or as may be otherwise agreed upon by CCL and City.

2.2. Limit on Size of Vessel Visiting P_ru_t.

Beginning with Contract Year 2027-28, CCL agrees that only "Sunshine Class" vessels, or vessels of an equivalent class, (with approximately 3,000 or lower berth passenger count) shall be permitted anchorage at the Port for year-round consideration under this Section

3.2 of this Agreement.

2.3. Ad.dnional Fees. City will make best efforts not to impose or assess an additional fees to CCL, but in the case it absolutely must do so, City shall provide, at a minimum, eighteen (18) months advanced written notice in the event City intends to incorporate any new levy, charge or fee imposed or assessed by City against CCL and all other multi-day passenger cruise lines calling on the Port after the Effective Date. Wh en City is contemplating a new fee that may impact CCL, City shall provide CCL with at least seven (7) days' prior written notice (or the notice period required by applicable law, whichever is shorter) in advance of 3 any public meeting where such fee will be considered.

3. PREFERENTIAL RIGHTS

3.1. Schedule. CCL shall submit a cruise ship berthing schedule ("CCL Berthing Schedule") not less than eighteen (18) months prior to start date of each fall/winter cruise season and/or each summer cruise season. The fall/winter cruise season begins on September 15 and runs through May 15 of each calendar year. The summer cruise season begins on May 16 and runs through September 14 of each calendar year. The CCL Berthing Schedule must include the specific dates reseNed and the CCL vessel name. Within seven (7) business days after receipt of the CCL Berthing Schedule required by this section, the City shall confirm in writing the dates reseNed by CCL.

3.2. Preferential Rigbts_. With respect to the CCL Berthing Schedule, beginning with Port visits scheduled on or after October 1, 2027 through the end of the Term , City agrees to grant CCL with the following Preferential Rights to access one (1) Anchorage, Float 5, and the corresponding Terminal:
(i) For the period beginning October 1, 2027, through the remainder of the Term and any extensions thereto, CCL shall hold the preferential rights for every Wednesday.

The rights set forth in this Section 3.2 will collectively be referred to as the "Preferential Rights" . City shall make the applicable Anchorage, Float 5, and Terminal available to CCL for the anchoring of the CCL vessels over any other vessel owner or operator.

3.3. Q.ther Cruise Lines; Schedule Chang.es.

3.3.1 . The City has entered, and may enter in the future, substantially similar agreements with other cruise lines for "preferential right dates" that are not in conflict with CC L's Preferential Rights dates (hereafter "Cruise Line Partners").

3.3.2. Any of CCL's Preferential Rights Dates that are not booked by CCL within the time period set forth in Section 3.1 shall first be made available on a first come first seNe basis to other Cruise Line Partners that have an existing agreement with the City, and secondly to all other Cruise Line Partners, after CCL has been given an additional 4 period of thirty (30) business days to book the Preferential Rights Dates not initially claimed in the period set forth in Section 3.1.

3.3.3. Any dates that are not utilized by other Cruise Line Partners outside the CCL Berthing Schedule shall be offered to CCL and Cruise Line Partners on a first come first serve basis.

3.4. CC L's Rights to Use Port. Subject to City's reasonable rules and regulations applicable to all operators at the Port, the grant of Preferential Rights shall include: (a) the right of ingress and egress to and from the Terminal for its officers, cruise agents, employees and passengers and those of its principals; and, (b) the right to use all passenger facilities (if any) located therein .

4. OBLIGATIONS OF THE PARTIES

4.1. City General Obligations. City shall, throughout the Term, ensure that the Anchorage, the Terminal and ancillary Port facilities are maintained and operated in compliance with City ordinances, codes and other applicable federal, state and local laws, consistent with good maritime practices and industry standards, and otherwise as necessary to ensure the Port is able to be utilized by CCL for its intended purpose.

4.2. CCL's General Obligatio__n_s_. CCL shall, throughout the Term , operate in compliance with applicable City ordinances, codes and applicable federal, state and local laws and in a manner consistent with good maritime practices and industry standards.

4.2.1. 4.2.2.

It is the responsibility of CCL to arrange tendering and any other services necessary for the safe movement of passengers to and from the CCL vessels.

Notwithstanding the foregoing, City shall not tax or impose any additional fee to CCL related to CC L's arranging of any tendering services.

For t he Term, in the event CCL requires the services of a third-party entity for necessary services identified in this Section 4.2, CCL is responsible for the contracting of such services.

4.3. Guest Code of Conduct. During the Term, CCL commits to use its best efforts to implement a " Guest Code of Conduct" to govern the behavior of CCL guests while visiting the City and using Port facilities. CCL further agrees to timely respond to reasonable feedback and/or 5 non-binding suggestions regarding guest conduct with a mutual goal to provide an optimized experience for CCL guests and City residents and businesses.

5. INSURANCE

5.1. Insurance Coverag.e__s_. CCL shall procure and maintain in full force and effect during the Term, paying as the same become due all premiums therefore, the following insurance:

5.1.1. 5.1 .2.

Protection and Indemnity and Pollution Liability: protection and indemnity (P&I) insurance for the following: collision liability insurance or equivalent insurance for each Cruise Line vessel; death of, or personal injury to, one or more persons and for property damage; Pollution insurance covering accidental or incidental releases originating from any CCL vessel; all such coverages to have limits of no less than ten million US Dollars ($10,000,000).; and
General Liability: general liability insurance (including contractual liability) written on a per occurrence limit of not less than ten million US Dollars ($10,000,000) insuring against the liability of CCL; and

5.2. Proof of Insurance. Upon receipt of a written request, CCL shall furnish City with proof of insurance coverage.

5.3. City shall procure and maintain in full force and effect and at its sole cost and expense during the Term, property insurance coverage on the Anchorage and Terminals against loss or damage by fire, hurricane, windstorm , flood, earthquake and all other risk with "all risks" endorsement or its equivalent.

5.4. In addition, City shall procure and maintain at its sole cost and expense the following insurance coverage throughout the Term:

5.4.1 . Comprehensive General Liability Insurance. Comprehensive general liability insurance with limit of liability of not less than Five Million Dollars ($5,000,000) from any one occurrence for all injuries or deaths and property damage liability including, 6 commercial general liability for premises/operations, and contractual liability coverage.

5.4.2. Comprehensive Motor Vehicle Liability Insurance. Business Automobile Liability in the minimum amount of One Million Dollars ($1,000,000) per occurrence for all owned, non-owned and hired autos operating in or out of the Port. The Business Auto Liability policy shall name Cruise Line as an additional insured.

5.4.3. Workers' Compensation Insurance. Workers' compensation insurance for all employees for statutory limits in compliance with the applicable state and federal laws, with employer's liability coverage of not less than One Million Dollars ($1,000,000).

Whenever applicable, coverage shall also include Federal Longshore and Harbor Workers Compensation Act in an amount of not less than One Million Dollars ($1 ,000,000).

Primary Insurance. With respect to City's operations at the Terminal and its obligations under this Agreement, all insurance required in this section shall be primary and noncontributory to any similar insurance that may be carried by CCL for City operations.

6. DEFAULT

6.1. Def.au.11. Each of the following events shall be deemed an event of default under this Agreement and a material breach of the terms, covenants and conditions of this Agreement.

The non-defaulting party may terminate the Agreement upon written notice to the other party as provided for herein.

6.1.1. 6.1.2.

Failure to pay the fees due under this Agreement for a period of thirty (30) business days after the date of receipt by CCL of a written notice of late payment from City.

Except as provided in Section 6.1.1 above, breach of a material term, covenant or condition for a period of thirty (30) days after the non-breaching party gives the breaching party written notice specifying the particular breach; provided , however, that if such breach cannot reasonably be cured within thirty (30) days, 7 the party receiving such notice shall not be in default if it commences to cure such breach within said thirty (30) day period , diligently prosecutes such cure to completion, and completes such cure within one hundred eighty (180) days.

7. MISCELLANEOUS

7.1. Headings. The headings in this Agreement are for convenience only and do not in any way limit or amplify the provisions of this Agreement.

7.2. ~ - All notices hereunder shall be in writing and shall be delivered personally, by certified or registered mail, or by recognized courier (e.g., FedEx, UPS, OHL) addressed as follows :

To City: With Copy To:

David M. Maistros Scott Campbell
City Manager
410 Avalon Canyon Rd . [email protected]
P.O. Box 707
Avalon , CA 90704
[email protected]
To CCL Cruise Line: With Copy To:

If by US Postal Service:

CCL Cruise Line
Attn:

Email:
to such other respective addresses as any party hereto may hereafter from time to time designate in writing. Notices shall be deemed delivered (i) when perso nally delivered; (ii) on the third day after mailing when sent by certified or registered mail, and the postmark 8 affixed by the United States Postal Service shall be conclusive evidence of the date of mailing; (iii) on the first business day after deposit with a recognized courier if deposited in time to permit overnight delivery by such courier as determined by its posted cutoff times for receipt of items for overnight delivery to the recipient. Parties providing a notice hereunder shall also provide a courtesy copy of the notice via email to the email addresses indicated above

7.3. Governing Law: Determination of Disputes. This Agreement shall be governed by and interpreted in accordance with the admiralty and maritime laws of the United States and , to the extent applicable, the law of the State of California to the exclusion of all choice-of-law rules which might otherwise be applicable. Any legal proceeding of any nature brought by either party against the other to enforce any right or obligation under this Agreement, or arising out of any matter pertaining to this Agreement or the services to be performed hereunder, shall be brought and maintained exclusively before a court of competent jurisdiction in the State of California. The parties consent and submit to the jurisdiction of any such court and agree to accept service of process outside the State of California in any matter to be submitted to any such court pursuant hereto, and expressly waive all rights to trial by jury regarding any such matter.

7.4. C_o_m_p lete Agreement. This Agreement contains the complete agreement of the parties hereto with respect to the subject matter of this Agreement and shall supersede all previous communications, representations, or agreements, either oral or written , between the parties relating to such subject matter. No change, alteration or modification of this Agreement shall be effective unless made in writing and signed by both parties hereto. No waiver of any breach of covenants herein shall be construed as a waiver of the covenant itself or any subsequent breach thereof.

7.5. Severabilit)'.. If any term, covenant, condition , or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated .

7.6. Relationship of Parties . Nothing contained in this Agreement shall be deemed or construed by the parties or by any third person to create the relationship of principal and 9 agent or of partnership or of joint venture or of any association between City and CCL.

7.7. Interpretation and Definitions. The language in all parts of this Agreement shall in all cases be simply construed according to its fair meaning and not strictly for or against City or CCL.

The words " herein," "hereof," " hereunder," and other similar compounds of the word "here," when used in this Agreement shall refer to the entire Agreement and not to any particular provision or article.

7.8. Parties. The neuter gender includes the feminine and masculine, and the singular number includes the plural, and the word "person" includes a corporation, partnership, form or association wherever the context so requires.

7.9. Binding£ffect. This Agreement shall bind and inure to the benefit of City and CCL, and any such successors or permitted assigns of City and CCL.

7.10. Force Maje..ure.. City and CCL are excused from performing any of their respective duties, obligations or undertakings under this Agreement in the event, so long as, an d to the extent that the performance of such duty, obligation or undertaking is prevented, delayed, retarded or hindered by causes or conditions beyond the sole control of City, CCL and their agents and employees including, without limitation, acts of God, extreme weather and act of state or war, public emergency, strikes related to the operation in the Port, work stoppages or labor troubles of any other type (whether affecting City, CCL, its divisions, subsidiaries and affiliates) including the negligence or intentional acts of third parties, with respect to fire or catastrophic events regarding berths, piers, channels, turning basins, terminal buildings, vessel destruction, vessel mechanical problems of a material nature, fire or catastrophic marine casualty, theft or seizing of the vessels (a "Force Majeure Event"); provided that the party claiming the existence of a Force Majeure Event delivers written notice to the other party of such event within seven (7) calendar days after the commencement of such event. The existence of a Force Majeure Event shall not be a cause for termination of this Agreement; provided, however, that if the performance of any such duty, obligation or undertaking is prevented, delayed, retarded or hindered for a period of one hundred eighty (180) days, either party may terminate this Agreem ent without liability by delivering written notice of termination to the other party within thirty (30) days after that date.

7.11. No Exclusive Remedies. No remedy or election given by any provision in this Agreement shall be deemed exclusive unless expressly so indicated . Wherever possible, the remedies granted hereunder upon a default of the other party shall be cumulative and in addition to all other remedies at law or equity arising from such event of default, except where otherwise expressly provided.

7.12. As..signment. This Agreement is for the personal services of City and may not be assigned by City in any fashion, whether by operation of law, or by conveyance of any type without the prior written consent of CCL, which consent CCL may withhold in its sole discretion.

CCL retains the right to assign all or any portion of this Agreement at any time. Upon such assignment, and provided the assignee shall, in writing, assume CCL's obligations under this Agreement, CCL shall be automatically released and discharged from any and all of its obligations under this Agreement, and City shall thenceforth look solely to the assignee for performance of CC L's obligations under this Agreement. 7 .1 3. Waiver of Maritime Lien. City has no right to pledge the credit of CCL or any vessel owned or operated by CCL (the "Vessel"} in any manner or sum whatsoever. City shall not contract with any supplier of goods or services unless the supplier executes a purchase order containing a conspicuous notice to the effect that City has no right or authority to bind CCL or Vessel or create a lien upon them and that by acceptance of such purchase order, the supplier acknowledges that it looks solely to City and not to CCL or the Vessel for payment of goods or services ordered . Neither City nor City's employees, agents or contractors shall have the right to assert maritime liens on the Vessel for any payments due to them. In the event that a lien is placed on the Vessel in contravention of t he t erms hereof or as a result of any act, omission or neglect by City or City's employees, agents or contractors, City shall remove immediately, by bond or otherwise, any such lien and in the event CCL has incurred any costs, losses, damages or expenses, including reasonable attorneys' fees, as a result of the placement of a lien on the Vessel in contravention of the term s hereof then City shall immediately indemnify CCL therefor.

7.14. Cou nterparts. This Agreement may be executed in several counterparts, each of which will be deemed an original, and all such counterparts together will constitute one and the same II
instrument. Additionally, this Agreement may be executed in any number of duplicate originals, each of which will be deemed to constitute but one and the same instrument. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
7 .15. Most Favored Nation. Notwithstanding anything herein to the contrary, City hereby grants CCL "Most Favored Nation" status. Accordingly, City hereby covenants and agrees that, during the Term , all fees, charges, and costs charged to CCL shall not be greater than those charged to all other Cruise Line Partners.

7.16. Re.presentations and Warranties . Each Party hereby represents and warrants to the other Party as of the date of this Agreement, as follows : (i) it is duly organized , validly existing and in good standing; (ii) the execution, delivery, and performance of this Agreement will not (a) contradict any provision of any law, statute, rule or regulation or any order, writ, injunction or decision of any governmental entity, (b) conflict with, contravene or breach any contract, agreement or instrument to which it is a party or by which it or its assets or property is bound or to which it will be subject in any material respect, or (c) violate any provision of its organizational or governing documents in any material respect; and (iii) it has all necessary power and authority to execute and deliver this Agreement, and to perform its obligations hereunder. City further represents, warrants, and covenants that City is (and shall at all times be) the operator of the Port, with full legal authority to grant the berthing rights hereunder.
7 .17 . .G.o.m.Qliance. The Parties shall at all times comply with the compliance provisions in Exhibit C attached hereto.

7.18. Indemnification. Each Party shall indemnify, defend, and hold harmless the other Party, its affiliates , officers, directors, employees, and agents from and against all third party claims, damages, liabilities, and expenses (including reasonable attorney's fees , but CCL shall not indemnify for punitive, special, consequential and indirect damages) arising out of or in connection with the indemnifying Party's gross negligence, willful misconduct, or breach of this Agreement. Further, City shall indemnify, defend, and hold harmless CCL, its affiliates, officers, directors, employees, agents, and representatives, from and against all third party claims, damages, liabilities, and expenses (including punitive, special, consequential, indirect damages, and reasonable attorney's fees) arising out of or in 12 connection with (i) any property damage, bodily injury, personal injury, advertising injury and wrongful death caused directly or indirectly by City or its employees, independent contractors, or agents; (ii) any failure to comply with applicable law in the performance of its obligations under this Agreement: and (iii) any infringement or violation by City of any patent or registered or unregistered design, copyright, trademark, trade name, license or other proprietary or intellectual property right of any third party in connection with this Agreement.

In consideration of the foregoing, City and Cruise Line have executed this Agreement as of the Effective Date.

CCL CRUISE LINE
By:

Name: _______________ _
Its:

CITY OF AVALON
By:

Name: David M. Maistros
Its: City Manager
13 Catalina
Anchorages
Depth of Water

EXHIBI A

ANCHORAGE POINTS
Anchora e A
33° 20' 59.0" N
118° 18' 56.2" \V 118° I '35.8" W
Anchorage A: 30-40 fathoms
Anchorage B: 40-4: fathoms
Anchorage C: 35-40 fathoms
14 Anchora e .
33" 21' 21.0" N
118° 19' 16.7" W
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
December 16, 2025
Finance
Matthew Baker, Finance Director
AGENDA ITEM: I'::\
CITY MANAGER: CMll
Cruise Ship Annual Report for the fiscal year ended June 30, 2025 RECOMMENDED ACTION(S): Receive and file the Cruise Ship Annual Report for the fiscal year ended June 30, 2025.

REPORT SUMMARY: On September 3, 2024, the City Council adopted Resolution No. 24-34 re-establishing the guidelines for the approval of cruise ships visiting Avalon through December 30, 2027. The guidelines established a framework by which cruise ships would be approved to visit Avalon as a port of call. Per Resolution No. 22-55:

1. Number of regularly scheduled cruise ship vessels shall not exceed 3 per week during the Summer Season (Memorial Day to Labor Day) without final written approval of the Harbor Master and City Manager.

2. No cruise ship vessels shall be allowed on the weekends during the Summer Season (Memorial Day to Labor Day) or during special event weekends - such as Jazz Traxx -without final written approval of the Harbor Master and City Manager.

3. Number of regularly scheduled cruise ship vessels shall not exceed 3 per week during the "Off Season" (Labor Day to Memorial Day) without final written approval of the Harbor Master and City Manager.

4. Repositioning , infrequent, or small cruise ship vessels (1 ,000 passengers or less) may be considered for visitation by the Harbor Master, taking into account the day requested , holidays, event(s), harbor activity(ies), impacts to public safety, etc.

5. The Harbor Master and Finance Director will provide an annual report on cruise ship vessels that includes the number of vessels that visit Avalon , number of passengers, amount of wharfage collected, an safety or security incidents that may have occurred while the ship was in port, as well as projections and scheduling information for the next year.

Below please find the annual report on cruise ship vessels for the fiscal year ended June 30, 2025.

Fiscal Year (FY) 2024-25 Cruise Ship Financial Results and FY 2025-26 Outlook Please see below for a summary of cruise ship activity for the fiscal year ended June 30, 2025:

Month # of Vessels # of Vessels Number of Occupancy Wharfage Measure H Scheduled Arrived Passengers % Revenue Revenue
July 2024 10 10 40,673 106.6% $203,365 $81 ,346
August2024 8 8 31 ,333 101.4% 156,665 62,666
September 2024 4 4 12,930 98.0% 64.650 25,860
October 2024 10 7 22,449 97. 3% 112,245 44,898
November 2024 10 8 17,971 92.1 % 89,645 35,858
December 2024 9 9 35,381 97.8% 176,905 70,762
January 2025 7 6 19,533 89.4% 97,665 39,066
February2025 7 7 25,401 89.4% 127,005 50,802
March 2025 10 10 35,622 98.9% 178,110 71 ,244
April 2025 13 13 44,169 99.1% 202,350 80,940
May 2025 11 10 32,678 92.4% 163,390 65,356
June 2025 11 9 37,317 98.0% 146,730 58,692
Total 110 101 355,457 96.7% $1,654,140 $687,490
During the fiscal year ended June 30, 2025, the City of Avalon charged a $5.00 per passenger harbor wharfage fee for the use of harbor facilities , levied upon 100% of the manifest passengers, excluding persons employed on the vessel. On November 3, 2020, Avalon residents approved Measure H authorizing an additional tax on cruise ship, ferry, and aircraft passengers to fund the Catalina Island Medical Center. Beginning in April 2022, the City started collecting an additional $0.50 per passenger fee from cruise ships. The Measure H tax increased to $1 .00 per passenger beginning in April 2023 and increased to $2.00 per passenger in April 2024. There are no further increases to the tax scheduled.

Passenger counts are reported to the Harbor Department upon arrival to the harbor by the cruise operator. Ship occupancy rates are determined by comparing the reported manifest passengers to the ship's published passenger capacity, which generally assumes all cabins at double occupancy, and may exceed 100% occupancy as a result of three or more passengers sharing a cabin.

Over the past ten fiscal years, the number of cruise ship arrivals has remained fairly consistent, between 101 and 117 arrivals. The 101 arrivals during FY 2024-25 marked the fewest number of arrivals in the past 10 years, excluding the pandemic impacted years.

However, the last fiscal year had the largest average number of passengers per arrival, with an average of 3,519 passengers, a 12.2% increase from the prior fiscal year. Cruise ship operators arriving in Avalon have been transitioning to larger vessels since resum ing operations after the pandemic, which has increased wharfage revenues while maintaining approximately the same number of days with cruise ship arrivals. Below please find a chart comparing the number of arrivals and average passenger counts over the past ten fiscal years. 140
120
100
80 60
40 20
0 Cruise Ship Arrivals - Last 10 Fiscal Years
- Number of Arrivals - Nu m ber of Passengers
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
In March 2017, the City amended the municipal code to increase wharfage fees from $2.50 per passenger to $5.00 per passenger over five fiscal years through annual $0.50 per passenger increases. Per passenger wharfage rates had remained unchanged since increasing to $5.00 per passenger on July 1, 2020. On September 3, 2024, the City Council adopted a rate increase of $2.50 per passenger for a new per passenger rate of $7.50 effective January 1, 2026 based on the findings of a rate analysis performed by City Staff. The rate increase is estimated to increase cruise ship wharfage revenues by $750,000 annually to the Harbor Fund. Below please find a comparison of cruise ship wharfage revenues by fiscal year, and as a percentage of the Harbor's total operating revenues.
en $2.0
6 $1.8
$1.6
~ $1.4
$1.2
$1.0
$0.8
$0.6
$0.4
$0.2
$-
Cruise Ship Revenues - Last 10 Fiscal Years
25%
20%
15%
10%
5%
0%
- Wharf age Revenue - % of Harbor Operating Revenues
Cruise ship revenues now account for approximately 20% of Harbor operating revenues (Fund 103). As a result of prior rate increases and increased occupancy, cruise ship wharfage has been the fastest growing revenue and accounts for the majority of revenue growth in the Harbor Fund. In addition to the wharfage revenues generated, cruise ship passengers account for approximately one third of all visitors to the City and contribute an estimated $20 million of taxable sales activity for businesses located in the City. 1 The table below includes year-to-date arrival and passenger count information and projections through June 30, 2026.

Month # of Vessels # of Vessels Number of Occupancy Wharfage Measure H Scheduled Arrived Passengers* % Revenue Revenue
July 2025 10 10 41,473 103.6% 207,365 82,946
August2025 9 9 35,078 97.0% 175,390 70,156
September 2025 11 11 38,286 85.0% 191,430 76,572
October 2025 12 12 40,089 88.6% 165,020 66,008
November 2025 10 9 28,357 94.4% 141 ,785 56,714
December 2025* 9 - 31 ,805 90.0% 238,538 63,610
January 2026* 6 - 25,469 90.0% 191 ,018 50,938
February2026* 6 - 25,469 90.0% 191 ,018 50,938
March 2026* 14 - 43,316 90.0% 324,871 86,632
April 2026* 16 - 49,534 90.0% 371 ,507 99,068
May 2026* 11 - 39,532 90.0% 296,487 79,063
June 2026* 10 - 43,885 90.0% 329,137 87,770
Total 124 51 442,293 91.6% $2,823,566 $870,415
*Estimated figures for December 2025 through June 2026
While Resolution No. 22-55 provides a framework for which cruise ships will be approved, the resolution does not address the scheduling of cruise ship anchorage requests where two operators are requesting the same dates. At the February 18, 2025 City Council Meeting, the City authorized the City Manager to negotiate a port agreement with a cruise operator to establish, among other terms, an allowance for defined scheduling dates in the City of Avalon.

After the February meeting , the City was contacted by two other operators expressing a similar interest to enter into port agreements, with negotiations taking place with three operators during the fiscal year ended June 30, 2025. The City considered passenger capacity, preferred dates during the summer and shoulder seasons, length of agreement, proposed rate increases, and guaranteed minimums as terms for negotiation and anticipates entering into agreements with at least two operators during the current fiscal year. 1 Estimate assumes 60% of manifest passengers disembarking and spending of $66.39 per disembarking passenger based on Chamber's 2017 Economic and Fiscal Impacts Survey and adjusted for inflation.

Safety or Security Incidents
There were no safety or security incidents to report in the fiscal year ended June 30, 2025.

FISCAL IMPACTS: Contingent on City Council direction.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS: N/A

Avalon City CouncilDecember 16, 2025

Avalon City Council
December 16, 2025