AVALON CITY COUNCIL MEETING
TUESDAY, AUGUST 4, 2026 — 5:00 PM
410 AVALON CANYON ROAD, AVALON, CA 90704
AGENDA
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (310) 510-0220. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the 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. Additionally, space for interpreters will be provided at City Hall The public may attend the meeting in person or via zoom by logging into the following:Zoom Meeting Link:
https://usO6web.zoom.us/j/8381 6583767?pwd=DV5hW1 xanPl LrXMUOxzBPnB1 LCavLT.1 Meeting ID: 838 1658 3767Passcode: 515599
Zoom meetings will have captions in English or Spanish, at the option of the public attending.
In addition, 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 I PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALL
ANNOUNCEMENTS I WRITTEN COMMUNICATIONS
DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT I CITY ATTORNEY REPORT
COUNCILMEMBER REPORTS I REQUESTS I MAYOR REPORTORAL COMMUNICATION Members of the public may address the City Council at this time. No action will be taken onnon-agenda items at this meeting. Speakers should limit comments to two (2) minutes each.
CONSENT CALENDAR
1. Actions
Although the live recording is the official record of public meetings, minutes are prepared for the Council’s approval.
Recommended Action
Approve minutes from the June 25, 2026 Special City Council Meeting.
CITY COUNCIL AGENDA
AUGUST 4, 2026
PAGE 2
2. Warrants
Expenditures Submitted for Approval:
• US Bank General Account Warrants totaling $1,361,385.18.• One payroll totaling $321 ,262.72.• Four electronic fund transfer to CaIPERS retirement payments totaling $198,277.48.
• One electronic fund transfer totaling $8,452.79.
Recommended Action
Approve the disbursements for July 13, 2026 through July 24, 2026 totaling $1,889,378.17.
3. Resolution Approving the Title VI Plan Relating to Section 5309 Funds As a condition of receiving federal grant funds the City must have an approved Title VI Plan which must be updated every three years.Recommended Action Adopt the resolution approving the updated City of Avalon Title VI Plan as it relates to federal funding.
4. Ordinance Enacting Section 3-3.422 “Short-Term Rental Facilitator Reporting” to the Municipal Code
This ordinance was introduced and all further readings were waived during the July 28,2026 regular City Council Meeting. The Short-Term Rental Facilitator Act of 2025 wasenacted by Senate Bill 346 (Durazo). The Act provides a mechanism for cities to receive reporting regarding STRs operating in their jurisdiction. Once a city invokes the Act by ordinance, the Act requires online platforms like Airbnb and VRBO to identify and reportshort-term rentals in the city.
Recommended Action
Adopt the ordinance enacting Section 3-3.422 “Short-Term Rental Facilitator Reporting” to the Avalon Municipal Code.
GENERAL BUSINESS
5. Planning Commission Appointments
The terms for three (3) of the current Planning Commissioners expired on June 30, 2026.The City received six applications for the positions by the recruitment deadline. Mayor Marshall will provide her recommendations to the City Council at the meeting.
Recommended Action
1. Discuss applications received. 2. Consider the recommendation of Mayor Ann H.
Marshall. 3. Make an appointment for three individuals to serve as PlanningCommissioner for four-year terms expiring June 30, 2030. 4. Make an appointment for one individual to serve as Alternate Planning Commissioner for a two-year term expiringJune 30, 2028.
CITY COUNCIL AGENDA
AUGUST 4, 2026
PAGE 3
6. Civic Center Housing Project — Feasibility Analysis
The City of Avalon continues to evaluate strategies to increase workforce and year-round housing opportunities consistent with the goals and policies outlined in the City’s 2021— 2029 Housing Element. Goal V.C. and Policy V-16 identify the need to provide a variety of housing types, including workforce and seasonal employee housing, to support Avalon residents and employers.Recommended Action
1. Receive the Civic Center Housing Project Financial Feasibility Analysis prepared by RSG; 2. Direct staff to not advance Phase 2 or Phase 3A; 3. Reject all bids received forPhase 3B and Phase 3C; 4. Direct staff to explore options to determine whether qualified nonprofit housing developers are interested in developing and operating the proposedhousing project.
7. ENGEO On-Call Engineering Services Contract Amendment On April 21, 2026, the City Council authorized the award of a professional services contract for on-call engineering, materials testing and inspection for an amount not-toexceed $100,000 annually to ENGEO, Inc. for a three-year term. Since its authorization, the City has reached its annual expenditure limit.
Recommended Action
Authorize the City Manager to execute the First Amendment to the professional services agreement with ENGEO, Inc. for on-call engineering, materials testing and inspection increasing the contract total for the initial 12 month period — May 1, 2026 to April 30, 2027 - by a total of $300,000 for a total not-to-exceed sum of $400,000.
8. Advance Payment of Measure C Funds to the Catalina Island Medical Center (CIMC) The Catalina Island Medical Center (CIMC) has asked the City Council to approveexecution of an agreement to provide an advance payment of approximately $654,753.60 (including a State of California Administrative Fee described below) from the City’s general fund so that CIMC can participate in a Medicaid program to receive a substantial increase in funding.Recommended Action
1. Approve the Intergovernmental Transfer (IGT) Agreement with the Department of Health Care Services (DHCS), which obligates the City to make an IGT transfer in the amount of approximately $654,753.60 (including a DHCS Administrative Fee describedbelow) and subject to reconciliation by DHCS for Catalina Island Medical Center’s (CIMC)participation in the Voluntary Rate Range Intergovernmental Transfer Program, whichCIMC believes will result in increased funding for CIMC. 2. Approve the transfer of approximately $654,753.60 to DHCS on or before November 20, 2026 in accordance with the IGT Agreement. 3. Approve an advance payment agreement with dM0, whereby CIMC would allow the City to offset the amount of the IGT transfer of $654,753.60 plusCity Attorneys’ fees incurred in connection with the advance payment and certain administrative and lost opportunity fees, through Measure C funds, and, if necessary, anyother available and permissible CIMC revenues over the course of eighteen months.
CITY COUNCIL AGENDA
AUGUST 4, 2026
PAGE 4
ADJOURN
NOTICE OF POSTINGI, Devin Fuse Hart, declare that the City Council Agenda for Tuesday, August 4, 2026 was posted on Friday, July 31, 2026 on the City’s website, www.cityofavalon.qov/aqendacenter, and at City Hall, 410 Avalon Canyon Road.
-fru±
Devin Elise Hart, Senior Management Analyst
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: 1
ORIGINATING DEP: City Clerk CITY MANAGER: jAJU.
PREPARED BY: Gabrielle Morones, City Clerk
SUBJECT: City Council Minutes
RECOMMENDED ACTION(S): Approve minutes from the June 25, 2026 Special 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:
- June 25, 2026 Special City Council Meeting Minutes.
AVALON SPECIAL CITY COUNCIL MEETING
THURSDAY, JUNE 25, 2026
MINUTES
CALL TO ORDER -5:00 p.m.
ROLL CALL — Present: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce and Mary Schickling. Also present: City Manager David Maistros, City Attorney Scott Campbell and Senior Management Analyst. Absent: Councilmembers De La Rosa.
WRITTEN COMMUNICATIONS — City Staff received one (1) written communication regarding Item #1 Direction on City Action in Response to May 29, 2026 Demand for Cure and Correct Letter and Unconditional Commitment Letter and 22 written communications regarding Item #2Rescission of the May 22, 2026 Letter to the Federal Communications Commission and Direction Filing Responses to the Federal Communications Commission in Response to Filing of AVX.GENERAL BUSINESS
1. Direction on City Action in Response to May 29, 2026 Demand for Cure and Correct Letter and Unconditional Commitment Letter
Authorized the City Attorney to Prepare an Unconditional Commitment Letter in responseto the May 29, 2026 Demand for Cure and Correct Letter.
Motion to approve made by Michael Ponce, seconded by Lisa Lavelle.(4 Ayes — Marshall, Lavelle, Ponce and Schickling, 1 Absent — De La Rosa)
2. Rescission of the May 22, 2026 Letter to the Federal Communications Commission and Direction Filing Responses to the Federal Communications Commission in Response toFiling of AVXRescinded the May 22, 2026 letter to the Federal Communications Commission (FCC) and authorized the City Attorney to file responses to AVX’s filings with the FCC.
Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (4 Ayes — Marshall, Lavelle, Ponce and Schickling, 1 Absent — De La Rosa) Mayor Marshall adjourned the meeting at 5:17 p.m.
I, Gabrielle Morones, City Clerk, do hereby certify that the digital recording of the special City Council Meeting on June 25, 2026, is the official record of the Council Meeting and is on file and maintained in City Hall.Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: ________ ORIGINATING DEP: Finance CITY MANAGER: i&g,4PREPARED BY: Matthew Baker, Finance Director SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve the disbursements for July 13, 2026 through July 24, 2026 totaling $1,889,378.17.
REPORT SUMMARY: These disbursements through July 24th are comprised of warrants from the US Bank General Account totaling $1,361,385.18, one payroll totaling $321,262.72, fourelectronic fund transfers for CaIPERS retirement payments totaling $198,277.48, and otherelectronic fund transfers totaling $8,452.79.
ITEM DESCRIPTION AMOUNT DATE
SA US BANK WARRANTS CK# 42227 - 42365 1,317,240.11 07/16/26GE US BANK WARRANTS CK# 42366 - 42376 44,145.07 07/21/26 PAYROLL 321,262.72 07/24/26EFT -CALPERS RETIREMENT 48,855.15 07/14/26EFT-CALPERS RETIREMENT 49,921.72 07/15/26EFT -CALPERS RETIREMENT 50,438.59 07/22/26EFT -CALPERS RETIREMENT 49,062.02 07/22/26EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 8,452.79 07/24/26 TOTAL DISBURSEMENTS $1,889,378.17
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY25-26 Budget and FY26-27 Budget.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: Audit Certificate, Warrant Lists, U.S. Bank Credit Card Detail
CITY OF AVALON
JULY 13-JULY 24TH 2026 DISBURSEMENTS
August 4, 2026
ITEM DESCRIPTION AMOUNT DATE
SA US BANK WARRANTS CK# 42227- 42365 1,317,240.11 07/16/26 OF US BANK WARRANTS CKU 42366- 42376 44,145.07 07/21/26PAYROLL 321,262.72 07/24/26EFT - CALPERS RETIREMENT 48,8S5.1S 07/14/26EFT - CALPERS RETIREMENT 49,921.72 07/15/26 EFT - CALPERS RETIREMENT 50,438.59 07/22/26EFT - CALPERS RETIREMENT 49,062.02 07/22/26EFT- HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 8,452.79 07/24/26 TOTAL DISBURSEMENTS $ 1,889,378.17
CERTIFICATE
IN ACCORDANCE WITH SECTION 32702
OF THE GOVERNMENT CODE, I CERTIFY
THAT THE ABOVE DEMANDS ARE ACCURATEAND THAT FUNDS ARE AVAILABLE FOR PAYMENT.
APPROVED AND AUDITED THIS4TH DAY OF AUGUST 2026 I CERTIFY UNDER PENALTY OF PERJURY
THAT THE FOREGOING IS TRUE AND
CORRECT.
AUDIT COMMITTEE -LISA LAVELLE EXECUTED THIS 4TH DAY OF AUGUST 2026AUDIT COMMITTEE - DONNA LOPEZ FINANCE DIRECTOR - MATTHEW BAKER
CITY OF AVALON
WARRANT DISBURSEMENTS
July 16, 2026
CHECK DATENUMBER ISSUED AMOUNT NAME DESCRIPTION
42227 7/16/2026 31,030.00 ALLIANT INSURANCE SERVICES INSURANCE:POLICY FY:2027 42228 7/16/2026 32,2S2.00 ALLIANT INSURANCE SERVICES INSURANCE:POLICY FY:202742229 7/16/2026 30,204.00 ALLIANT INSURANCE SERVICES INSURANCE:POLICY FY:202742230 7/16/2026 28,500.00 ALLIANT INSURANCE SERVICES INSURANCE:POLICY FY:202742231 7/16/2026 3,817.50 AMAZON CAPITAL SERVICES, INC. SUPPLIES: ALL DEPT42232 7/16/2026 4,812.17 AVALON FREIGHT SERVICES, LLC FREIGHT: ALL DEPTS42233 7/16/2026 44,156.00 CALIFORNIA TRANSIT INDEMNITY POOL INSURANCE: FY27 P.142234 7/16/2026 233.58 CATALINA BEVERAGE CO SUPPLIES: ALL DEPTS 4223S 7/16/2026 3,571.57 CATALINA BROADBAND SOLUTIONS INTERNET: ALL DEPTS42236 7/16/2026 34,264.20 CATALINA CANYON INN LODGING: USC BAND 4TH OF JULY42237 7/16/2026 18,793.00 CATALINA ISLAND COMPANY RENT: 07/202642238 7/16/2026 1,100.51 COYLE REPRODUCTIONS, INC SUPPLIES: STREET SIGNS42239 7/16/2026 7,523.67 DELTA DENTAL DENTAL: 7/202642240 7/16/2026 1,091.50 DEPARTMENT OF AUDITOR CONTROLLER LAFCO: DUES FY27 P142241 7/16/2026 778.00 DEWEY PEST CONTROL SERVICE: ALL DEPT42242 7/16/2026 1,332.72 DION & SONS MARINE FUELS INC FUEL: ALL DEPTS42243 7/16/2026 1,168.04 FIDELITY SECURITY LIFE INSURANCE VISION: 07/2026 42244 7/16/2026 948.86 GRAINGER SUPPLIES:PUBLIC WORKS
42245 7/16/2026 369.80 HMIELAK, JAMES REIMB:TRAINING/TRAVEL 42246 7/16/2026 8,S00.00 IWORQ SYSTEMS INC. SOFTWARE: LEASE ADMIN42247 7/16/2026 235.49 L.N. CURTIS & SONS SUPPLIES: FIRE42248 7/16/2026 1,081.00 MASA DUES: 07/202642249 7/16/2026 5,167.75 MCCI LLC SERVICE: IT42250 7/16/2026 86.33 MCMASTER-CARR SUPPLIES: HARBOR DEPARTMENT42251 7/16/2026 798.03 MINUTO, FRANK RETIREE INS: 07/202642252 7/16/2026 754.61 MINUTO, PHILIP RETIREE INS: 07/202642253 7/16/2026 344.10 MM INTERNET, INC. SERVICE: IT42254 7/16/2026 504.37 NAPA AUTO PARTS SUPPLIES:GARAGE422S5 7/16/2026 1,949.04 ORANGE COUNTY WINWATER WORKS SUPPLIES: PUBLIC WORKS42256 7/16/2026 605.88 RICOH USA, INC. COPIER LEASE: PLANNING 42257 7/16/2026 9,3S7.91 SIRIA’S CLEANING SERVICE 1ST HALF: 07/202642258 7/16/2026 S69.00 SOUTHERN CALIFORNIA ASSOC OF GOVERN MEMBERSHIP: DUES42259 7/16/2026 1,153.63 STANDARD INSURANCE COMPANY LIFE INSURANCE: 07/2642260 7/16/2026 2,344.50 BRAVO, VERONICA MEALS: USC BAND 4TH OF JULY42261 7/16/2026 4,719.58 SUPERION, LLC SOFTWARE LEASE :FINANCE42262 7/16/2026 1,100.00 THE EMBLEM AUTHORITY UNIFORMS: FIRE42263 7/16/2026 48.70 UNDERGROUND SERVICE ALERT/SC SERVICE: PUBLIC WORKS42264 7/16/2026 1,200.00 VICKERS, JOHN SERVICE:4TH OF JULY42265 7/16/2026 292.80 AIR SOURCE INDUSTRIES SUPPLIES: FIRE42266 7/16/2026 62.20 ALCALA, RODRIGO SUNGLASSES: MOU-FY2642267 7/16/2026 3,914.68 AMAZON CAPITAL SERVICES, INC. SUPPLIES: ALL DEPTS42268 7/16/2026 193,057.3S CR&R INCORPORATED SWEEPER & CONTRACT SVCS:06/202642269 7/16/2026 538.26 AVALON FREIGHT SERVICES, LLC FREIGHT: ALL DEPTS42270 7/16/2026 150.00 BARRAGAN, JOSE SUNGLASSES: MOU FY2642271 7/16/2026 200.00 BENTDAHL, MARY SERVICE: RECREATION42272 7/16/2026 - BEST, BEST& KRIEGER, LLP VDID:MUTI-STUB CHECK 42273 7/16/2026 95,324.25 BEST, BEST & KRIEGER, LLP LEGAL FEES: OS & 06/2026 42274 7/16/2026 78.09 BLUE SHIELD OF CALIFORNIA REFUND:AMBULANCE FEE 42275 7/16/2026 496.01 BOUND TREE MEDICAL SUPPLIES: FIRE 42276 7/16/2026 137.76 BRAVO, FRANCISCO SUNGLASSES: MOU FY26 42277 7/16/2026 150.00 BROOKS, MICHAEL SUNGLASSES: MOU FY2642278 7/16/2026 7,963.00 CANINE PARK SOLUTIONS LLC EQUIPMENT:DOG PARK42279 7/16/2026 104.90 CATALINA BROADBAND SOLUTIONS INTERNET: ALL DEPTS42280 7/16/2026 87.00 CATALINA COFFEE & COOKIE CO. SUPPLIES: ALL DEPTS 1S56.94 7/16/2026 1,SS6.94 CATALINA EXPRESS TRAVEL: SUBSIDY 04/2026 42281 7/16/2026 65,695.14 CATALINA EXPRESS TRAVEL: SUBSIDY 06/202642281 7/16/2026 399.50 CATALINA EXPRESS TRAVEL: ALL DEPTS TRAVEL 06/2026
CITY OF AVALON
WARRANT DISBURSEMENTS
July 16, 2026
CHECK DATENUMBER ISSUED AMOUNT NAME DESCRIPTION
42282 7/16/2026 14,400.00 CATALINA FALCONRY, LLC CONTRACT SVCS: FALCONRY42283 7/16/2026 18,793.00 CATALINA ISLAND COMPANY RENT: 06/202642284 7/16/2026 783.00 CATALINA ISLANDER ADVERTISING: ALL DEPTS 42285 7/16/2026 398.00 CATALINA PEST CONTROL SERVICE: MOLE42286 7/16/2026 57,909.18 CIRCUIT TRANSIT, INC. CONTRACT SVCS:06/202642287 7/16/2026 176,526.20 CO. OF LOS ANGELES SHERIFF’S DEPT. RESIDENT DPTY:06/2642288 7/16/2026 250.69 COASTLINE EQUIPMENT SUPPLIES: GARAGE42289 7/16/2026 9,100.00 COUNTY OF LA INTERNAL SERVICES DEPT SERVICE: IT42290 7/16/2026 7,647.60 DELTA DENTAL DENTAL:G6/202642291 7/16/2026 1,499.88 DION & SONS MARINE FUELS INC FUEL: HARBOR42292 7/16/2026 89,401.38 EDISON UTILITIES: ALL DEPT42293 7/16/2026 13,073.00 ESG SERVICE: PUBLIC WORKS 42294 7/16/2026 , 1,209.58 ESG SERVICE: CIP 26700142295 7/16/2026 2,363.53 ESG SERVICE: CIP 20500442296 7/16/2026 9,903.17 ESG SERVICE: CIP 20500442297 7/16/2026 3,S7S.00 ESG SERVICE: CIP 20501742298 7/16/2026 450.00 ESG SERVICE: CIP 20520142299 7/16/2026 649.00 ESG SERVICE: CIP 24250342300 7/16/2026 981.21 ESG SERVICE: CIP 242S0342301 7/16/2026 2,214.50 ESG SERVICE: CIP 18000542302 7/16/2026 410.00 ESG SERVICE: CIP 20501542303 7/16/2026 225.00 ESG SERVICE: CII’ 20501542304 7/16/2026 4,400.53 ESG SERVICE: CIP 26700242305 7/16/2026 5,160.30 ESG SERVICE: CIP 26700242306 7/16/2026 713.78 ESG SERVICE: CII’ 205009 42307 7/16/2026 2,825.90 ESG SERVICE: CII’ 20500942308 7/16/2026 17,6S2.24 ESG SERVICE: CII’ 24700442309 7/16/2026 3,212.51 ESG SERVICE: CIP 24700442310 7/16/2026 17,652.24 ESG SERVICE: CIP 18000342311 7/16/2026 979.97 ESG SERVICE: CIP 18000342312 7/16/2026 37,295.00 ESG SERVICE: CII’ 20S00642313 7/16/2026 900.00 ESG SERVICE: CII’ 20S00642314 7/16/2026 1,710.90 ESG SERVICE: CII’ 20700242315 7/16/2026 4,493.70 ESG SERVICE: CIP 20700242316 7/16/2026 2,279.58 ESG SERVICE: CIP 20501142317 7/16/2026 2,180.00 ESG SERVICE: CIP 20501142318 7/16/2026 225.00 ESG SERVICE: CIP 20501442319 7/16/2026 225.00 ESG SERVICE: CII’ 20501442320 7/16/2026 750.00 ESPRY, INC. SERVICE: IT42321 7/16/2026 1,189.57 FIDELIT’T’SECURITY LIFE INSURANCE VISION: 06/202642322 7/16/2026 638.91 FINANCIAL CREDIT NETWORK SERVICE: FINANCE42323 7/16/2026 450.00 ANGELA TORRES PHILIPS SERVICE:RECREATION42324 7/16/2026 1,363.00 GAINES,JERRY REIMB: CIP 18000342325 7/16/2026 5,948.54 GANAHL LUMBER COMPANY SUPPLIES:PUBLIC WORKS42326 7/16/2026 80.00 GARCIA, MARTHA REFUND: DAY CAMP42327 7/16/2026 148.84 GARZA, WADE SUNGLASSES : MOU FY-2642328 7/16/2026 11,465.50 GEO-LOGIC ASSOCIATES, LLC. PBL EXPANSION CIP42329 7/16/2026 698.15 GRAINGER SUPPLIES:PUBLIC WORKS42330 7/16/2026 18,721.50 HARRY’S MARINE SERVICE, LLC SERVICE: HARBOR42331 7/16/2026 150.00 HERNANDEZ, ANDREW SUNGLASSES: MOU FY-2642332 7/16/2026 1,596.07 HINDERLITER, DE LLAMAS & ASSOCIATES SERVICE: FINANCE42333 7/16/2026 15,435.00 INTERNATIONAL CONSULTING SERVICES SERVICE: CII’ 18000542334 7/16/2026 1,995.00 INTERNATIONAL CONSULTING SERVICES SERVICE: CII’ 20501442335 7/16/2026 1,627.50 INTERNATIONAL CONSULTING SERVICES SERVICE: CIP 20501242336 7/16/2026 420.00 INTERNATIONAL CONSULTING SERVICES SERVICE: CII’ 20500342337 7/16/2026 11,704.19 JAMISON ENGINEERING CONTRACTORS INC SERVICE: CII’ 20S01142338 7/16/2026 1,973.2S JORDAHL CONSTRUCTION SERVICE:PUBLIC WORK42339 7/16/2026 577.50 KEY CODE MEDIA, INC. SERVICE: CHAMBER AV42340 7/16/2026 411.83 LAVELLE, LISA REIMB:TRAINING/TRAVEL42341 7/16/2026 0.82 LAWSON PRODUCTS SUPPLIES: GARAGE42342 7/16/2026 511.78 LINDE GAS & EQUIPMENT INC. SUPPLIES: WELDING42343 7/16/2026 3,750.00 MASSEY CONSTRUCTION, LLC SERVICE:PUBLIC WORK42344 7/16/2026 866.19 MATTHEWS INTERNATIONAL CORPORATION SUPPLIES: CEMETERY42345 7/16/2026 82.89 ISLAND EXPRESS HELICOPTERS INC. FREIGHT: GARAGE42346 7/16/2026 344.10 MM INTERNET, INC. SERVICE: IT42347 7/16/2026 143.63 MORITZ, DONALD SUNGLASSES : MOU FY-2642348 7/16/2026 174.22 NAPA AUTO PARTS SUPPLIES: GARAGE
42349
4235042351
4235242353423544235542356
423574235842 35942360
4236142362423634236442365
7/16/20267/16/20267/16/20267/16/2026
7/16/20267/16/20267/16/2026
7/16/2026
7/16/2026
7/16/20267/16/2026
7/16/20267/16/20267/16/20267/16/20267/16/20267/16/2026
$ 1,317,240.11
CITY OF AVALON
WARRANT DISBURSEMENTS
July 16, 2026
DESCRIPTION
SERVICE: CIP 180003SUPPLIES:PUBLIC WORKS
CONTRACT SVCS: 07/2026
SUPPL1ES:CODE ENFORCMENTSUPPLIES: ALL DEPTSSERVICE: S/ACONTRACT SVCS: PLANNINGSUNGLASSES: MOU FY-26SUNGLASSES: MOU FY-26SENIOR MEALS:06/26SUNGLASSES: MOU FY-26 UNIFORMS: HARBOR
SERVICE: RECREATIONSUPPLIES:PUBLIC WORKS
SUPPLIES:PUBLIC WORKS
SUPPLIES: HARBORSERVICE: FINANCE
CHECK DATE
NUMBER ISSUED AMOUNT NAME
9,545.00 ONTERRIS USA, INC.
22,801.55 ORANGE COUNTY WINWATER WORKS
2,790.00 PERC WATER
3,63472 BET, LP
885.38 QUILL CORP
206.25 RSG, INC
14,625.34 SAGECREST PLANNING & ENVIRONMENTAL
150.00 SALDANA, MARTIN132.30 SANCHEZ, PAUL261.00 SAND TRAP223.18 SCHUESSLER, BEN119.05 SEC HOLDINGS, LLC
44.00 SIRIAS CLEANING SERVICE
1,S34.91 ULINE, INC.
4,346.28 WALTERS WHOLESALE ELECTRIC CO
158.68 WEST MARINE PRO
2,220.00 WITTMAN ENTERPRISES, LLC
CITY OF AVALON
WARRANT DISBURSEMENTS
July 21, 2026
CHECK DATENUMBER ISSUED AMOUNT NAME DESCRIPTION
42365 7/21/2026 13,740.00 4LEAF, INC. SERVICE PLANNING42367 7/21/2026 8,178.76 AVALON MOORING & DIVING SERVICE: HARBOR42368 7/21/2026 112.00 CATALINA BEVERAGE CO SUPPLIES: ALL DEPTS42369 7/21/2026 3,486.S9 CATALINA BOATYARO INC SERVICE: HARBOR42370 7/21/2026 5,076.8R CATALINA ISLAND COMPANY PROP TAX: FY2642371 7/21/2026 1,600.00 CENTRAL COAST GROUP SERVICE: FIRE42372 7/21/2026 2,S22.9S DAPEER, ROSENBLIT & LITVAK,LLP SERVICE: VEHICLES42373 7/21/2026 1,905.00 ESG SERVICE: CIP 20S009 42374 7/21/2026 480.00 ORIGINALANTONIO’S PIZZERIA SENIOR MEALS: 05/2042375 7/21/2026 1,947.80 HERTEL SALDANA, GABRIEL L SERVICE: HARBOR42376 7/21/2026 S,09S.09 CORPORATE PAYMENT SYSTEMS SEE A11ACEHO OETAIL $ 44,145.07
$ 5,095.09 CHECK 42376
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID JULY 24, 2026
AugusE 4, 2026
LASTNAME POSTDATE AMTUSD VENDOR DESCRIPTION DEPARTMENTP SANCHEZ 5/21/2025 25.35 CHETS HARDWARE MAINTENANCE OP PREMISES HARBORP. SANCHEZ 6/13/2525 22.03 CHETS HARDWARE MAINTENANCE OF PREMISES HARBOR MONTGOMERY S/OB/2025 34.14 CHEFS HARDWARE MAINTENANCE OP PREMISES HARBOR MONTGOMERY 5/20/2025 99.17 L,L. BEAN UNIPORMS: HABBOB HARBOR MONTGOMERY B/EOI2B2B 1B2.S0 BTFIRESUPPLYDEPOT MAINTENANCEOPPREMISES HARBORMONTGOMERY 6/9/2026 9.91 CHEFS HARDWARE MAINTENANCE OF PREMISES HARBORCAMPBELL 5/20/2026 7S00 LIERERT CASSIOT WHIYMGBE TRAINING PINANCE AOMIN CAMPBELL 6/3/2026 115.75 AMAZON SUPPLIES: ADMIN ADMINCAMPBELL 6/3/2026 11.09 CA BOATER CARD TRAINING: HARBOR ADMINCAMPBELL B/11/202B 14.99 CANVA GPEBATING COSTS: IT ADMINCAMPBELL R/E2/2D26 S4.95 BOAT EO.COM TRAINING: HARBOR ADMIN M DAILEY 5/24/292B 3S.BS SIP.US GPEBATING COSTS: IT ADMIN M DAILET 5/23/2525 41.44 STNGLGGT OPERATING COSTS: IT ADMINM. OAILET 5/23/2925 SS.00 STABLINK OPERATING COSTS: IT ADMINM. DAILEY S/30/202B 92.00 GETJGAN.COM OPERATING CGSTS: IT ADMINM. DAILEY B/D/2B2B B2.9B CTBERLINK OPERATING CGSTS: IT ADMINM. DAILET 5/2/2025 1B49.70 DELL OPERATING COSTS: IT ADMINM. DAILEY B/1/2B2B BS.S0 ESCLAIMER FABNBGROUGH OPERATING COSTS: IT AGMIN M DAILEY 6/7/7076 72B DO DGMGTZ OPERATING COSTS: IT ADMINM. DAILEY 6/2/2026 452.00 INTRUSIGNOPS LLC OPERATING COSTS: IT ADMINM. DAILEY B/3/2926 719.2S EBAT OPERATING COSTS: IT AOMINM DAILEY B/5/2925 10747 CTBEBLTNK NET OPERATING COSTS: IT ADMINM OAILET 6/9/2026 SERBS MICROSOFT OPERATING COSTS IT ADMIN M. GAlLEY B/S0/202B S17.ES FIBER INSTRUMENT SALES OPERATING COSTS: IT ADMINM. DAILEY 6/11/2025 22.B2 FIBER INSTRUMENT SALES OPERATING COSTS: IT AGMINM. DAILEY 6/14/2026 21.00 CLOUDPLARE OPERATING COSTS IT ADMIN
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: _______ ORIGINATING DEP: Administration CITY MANAGER: _______ PREPARED BY: Aliana Gonzales, Administrative Analyst SUBJECT: Resolution Approving the Title VI Plan Relating to Section 5309 Funds RECOMMENDED ACTION(S): Adopt the resolution approving the updated City of Avalon Title VI Plan as it relates to federal funding.
REPORT SUMMARY: The City of Avalon has numerous federal grants, the largest being the Cabrillo Mole Phase I Reconstruction and Cabrillo Mole Phase II Terminal Project. As a condition of receiving federal grant funds the City must have an approved Title VI Plan which must be updated every three years. The Title VI Plan presented for approval tonight is the second update.
Title VI is a component of the Civil Rights Act of 1964 and states: “No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, bedenied benefit of, or subjected to discrimination under any program or activity receiving Federalfinancial assistance.” GOAL ALIGNMENT: N/A
FISCAL IMPACTS: N/A
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will not becompliant with federal regulations, potentially jeopardizing grant funds.FOLLOW UP ACTION: Submit required Resolution and Staff Report to the Los Angeles CountyMetropolitan Transportation Authority for approval.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. Title VI Update
2. Resolution
RESOLUTION NO.____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON, CALIFORNIA,
AUTHORIZING THE TITLE VI COMPLIANCE PLAN
WHEREAS, the City of Avalon desires to comply with Title VI of the Civil Rights Act of 1 964, including new provisions detailed in the U.S. Department of Transportation’s FTA Circular 4702.1B “Title VI Requirement Guidelines for Federal Transit Administration Recipients.” WHEREAS, the City of Avalon wished to authorize the approval of the Compliance Plan Developed by staff to comply with necessary provisions of the Civil Rights Acts.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF AVALON DOES HEREBY RESOLVE AS FOLLOWS:
1. The City Manager is authorized to implement the components of the plan in order to meet federal requirements.
2. The City Manager is authorized to implement policies that may be necessary to Comply with subsequent revisions or interpretations to the Civil Rights Act.
Passed, Approved and Adopted on the 4th day of August, 2026.I, the undersigned, hereby that the foregoing Resolution Number was duly adopted by the City Council of the City of Avalon following a roll call vote:
Ayes:
Noes:
Absent:Abstain:
Ann H. Marshall, Mayor
Gabrielle Morones, City Clerk
City of Ava Ion
Title VI Plan
Relating to Section 5309 Funds
Developed August 4, 2026
Approved by the City of Ava Ion City Council
P.O. Box 707
410 Avalon Canyon Road
Avalon,CA 90704
310-510-0220
www.cityofavalon .gov
TABLE OF CONTENTS
Introduction
General Requirements
Notification of Beneficiaries of Protection under Title VI Title VI Complaint Procedure and Complaint Form
Recording Title VI Investigations, Complaints and Lawsuits City Councils’ Resolution Approving Title VI Program
Provision of Additional Information to the FTA
Ill Inclusive Public Participation
Opportunities for Public Participation
Public Involvement Process
Next Steps
IV Language Assistance Plan
Four Factor AnalysisLanguage Assistance Measures
Staff Training
Notice to LEP Person about Available Language AssistanceMonitoring, Evaluating and Updating LEP Plan V Decision Making Bodies
Table of non-elected committees in the City of Avalon, broken down by race Process to recruit board members
VI Program Specific Requirements
Information on Title VI equity analysis
VII Grants, Reviews and Certifications
Pending Applications for Financial Assistance
Pending FTA Grants
Open FTA GrantsCivil Rights Compliance Reviews
Recent Annual Certifications and AssurancesPervious Triennial Review Findings I. INTRODUCTION
“No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federalfinancial assistance” (42 U.S. C. 2000d) The City of Avalon, as a recipient of federal financial assistance, will ensure full compliance with Title VI ofthe Civil Rights Act of 1964, as amended and related statutes and regulations in the City of Avalon’s Cabrillo Mole Ferry Terminal Rehabilitation Project and the Cabrillo Mole Ferry Terminal Project. The City will use Section 5309 federal funds for the construction and installation of passenger amenities and improvements at the Cabrillo Mole Ferry Terminal. The City of Avalon provides, without regard to race, color, or national origin:
• Opportunities to participate in the transit planning and decision making processes; and, • Fair decisions on the location of transit services and facilities.
These objectives are the basis for the City of Avalon’s Title VI Plan. The Plan that follows was updated in conformance with FTA C 4702.1B-C (October 1, 2012). The new guidance in this circular integrates the responsibilities to Limited English Proficient (LEP) Persons into programs and activities developed under the Title VI regulations (49 CFR Part 21) to recipients of federal financial assistance.
The program contains all of the elements required in the U.S. Department of Transportation FederalTransit Administration Title VI Circular dated October 1, 2012. It has been prepared using data from the most recent 2010 U.S. Census.
The City Manager is responsible for ensuring implementation of the City of Avalon’s Title VI Plan. The Public Works Director, on behalf of the City Manager, is responsible for the overall management of the Title VI plan as outlined herein. The Public Works Director does not hereby assume responsibility for Title VI compliance outside the scope of this report. The day to day administration of the Title VI Plan lies with the Title VI Coordinator under the direct supervision of the Public Works Director.
In addition to the Title VI Coordinator, Title VI Specialists will be named in the following program areas:
Transportation Design and EngineeringTransportation Right of WayTransportation Environmental ServicesTransportation Administration, Public Information and Outreach Human ResourcesProcurement
Po’icy Statement, Authorities and Citations
A. Policy of Nondiscrimination
The City of Avalon (City) assures that no person shall on the grounds of race, color, national origin, or sex as provided by Title VI of the Civil Rights Act of 1964, and the CivilRights Restoration Act of 1987 (P.L. 100.259) be excluded from participation in, be deniedbenefits of, or be otherwise subjected to discrimination under any City sponsored transportation program or activity. The City further assures every effort will be made to ensure nondiscrimination in all of its federally funded transportation programs andactivities.
In the event that the City distributes federal transportation funds to another entity, it will include Title VI language in all written agreements and will monitor for compliance.
Title VI compliance is a condition of receipt for federal funds, including funds from the Federal Transportation Administration and the Federal Highway Administration.
Assurance of compliance falls under the proper authority of the City pursuant to its budgetary authority and responsibility. The Public Works Director and Transportation Title VI Coordinator are authorized to ensure compliance with provisions of this policy and with the law, including the requirements of 23 Code of Federal Regulations (CFR) 200 and 49 CFR 21.David Maistros, City Manager Date
II. GENERAL REQUIREMENTS
1. Notification of Beneficiaries of Protection Under Title VIIn compliance with 49 CFR Section 12.9(d), the City of Avalon has provided information to the public regarding its Title VI obligations and apprises members of the public of the protection against discrimination afforded to them by Title VI on an on-going basis. This statement of nondiscrimination on the basis of race, color, or national origin is on the City’s website. The notice also includes contact information for requesting details on the City’s Title VI obligations and the complaint procedure. Thenotice is available on the City webpage, the Cabrillo Mole Ferry Terminal, and at the City Hall front desk.
CIVIL RIGHTS NOTICE
The City of Avalon is committed to ensuring that no person is excluded form participation in, or deniedthe benefits of, its service on the basis of race, color or national origin as provided under Title VI of the Civil Rights Act. The Civil Rights Restoration Act of 1987 broadened the scope of Title VI coverage byexpanding the definition of terms “programs and activities” to include all programs or activities of Federal Aid recipients, sub-recipients, and contractors, whether such programs and activities are federally assisted or not (Public Law 100-259 (S. 557) March 22, 1988).
Additional Citations:
Title VI of the Civil Rights Acts of 1964; 42 USC 2000d to 2000d-4; 42 USC 4601 to 4655; 23 USC 109(h); 23 USC 324; DOT Order 1050.2; EO 12250; EO 12898; 28 CFR 50.3 The City of Avalon is committed to ensuring that the level and quality of transportation service is providedwithout regard to race, color or national origin and promoting the full and fair participation of all potentially affected populations in transportation decision making; preventing denial, reduction, or delayin benefits related to programs and activities affecting minority, low-income populations; providingmeaningful access to City services, programs, and activities by persons with limited English proficiency(LEP).
To file a complaint or obtain additional information on the City of Avalon’s obligation regarding non discrimination, please write to: City of Avalon, City Manager’s Office, P.O. Box 707, Avalon, CA 90704.
Notifying the Public of Rights Under Title VI
City of Avalon
The City of Avalon operates its programs and services without regard to race, color, and national origin in accordance with Title VI of the Civil Rights Act. Any person who believes she or he has been aggrieved by any unlawful discriminatory practice under Title VI may file a complaint with The City of Avalon.
For more information on the City of Avalon civil rights program, and the procedures to file a complaint, contact 310-510-0220, or visit our administrative office at City Hall. For more information, visit:www.cityofavalon .gov
A complainant may file a complaint directly with the Federal Transit Administration by filing a complaint with the Office of Civil Rights, Attention: Title VI Program Coordinator, East Building, 5th Floor-TCR, 1200 New Jersey Ave., SE, Washington, DC 20590 If information is needed in another language, contact 310-510-0220.
Si se necesita informacion en otro idioma, contacte al 310-510-0220 The City of Avalon Title VI Notice is posted at City Hall, 410 Ava!on Canyon Road, Avalon, CA and at the Cabrillo Mole Ferry Terminal and at www.cityofavalongpv.
HOW TO FILE A TITLE VI COMPLAINT
The following Complaint Procedures and the Complaint Form are available on the City’s website atwww.cityofavalon.gov. Any person who believes he or she may have been discriminated against on the basis of race, color, or national origin may file a complaint with the City of Avalon’s City Manager’s Office. • A”aI Cc’rsla:nrco:ir• c20zv acre wOF Recvc.r
Report a Concern I Avalon, CA The complaint must be filed within 180 days of the alleged discrimination date. Written complaints may be sent to City of Avalon, P.O. Box 707, Avalon, CA 90704 or an online complaint form may be accessed at the City’s website at www.cityofavalon.comOnce completed, the complaint should be forwarded to City of Avalon, City Manager’s Office at P.O. Box707, Ava Ion, CA 90704.
In addition to utilizing the Civil Rights complaint process at the City of Avalon, a Complainant may file a Title VI complaint concerning race, color, or national origin discrimination with the Federal Transit Administration (ETA), Office of Civil Rights, Attention: Title VI Program Coordinator East Building 5th Floor TCR 1200 New Jersey Avenue SE Washington D.C., 20590.
2. Title VI Complaint Procedure
In order to comply with 49 CFR Section 21.9(b), the following complaint procedure will be followed by the City of Avalon in the event that any person believes that he or she, individually, or as a member of anyspecific class of persons, has been excluded form participation in, been denied the benefits of, or beensubjected to discrimination on the basis of race, color, or national origin with regard to:
R,p,oT.r’i
Report a Concern
Life Threatening EmergenciesFor emergencies, such as fires, ockfa:is, and other inSipediate threats to public safety, cal 913. i..
The City of Avalon appreciates Is res:dent arc visitor populat on support iii identifying issues tnrougbout tine City.Code Fnforcemnnt Violations Call 3t0.51O.0220 et, ti to repel a possible code e:’forceine’it violation or submit one of the following compia:nt forms:
• Nose Complaint Form• Pnr,erai rc.n’,p:ainr Frnm• 1ri vi Consnlaii’r horns The opportunity to participate in the transit planning and decision making processes; and, the right to fair decisions on the location of transit services, facilities and passenger amenities.
The complaint will be made in writing to the City of Avalon will include all information relevant to a determination of discrimination. A complaint must be filed within 180-days after the allegeddiscrimination. In case where the complainant is unable or incapable of providing a written statement, a City of Avalon designee will, if necessary, assist the person in converting verbal complaints to writing and will interview the complainant. The complainant or his/her representative will sign all complaints.After review of the complaint, which will include, but not limited to, interviewing all appropriate City personnel, the complainant, witnesses and review of the City’s policies and service standards, the City of Avalon will make a determination of discrimination. If it is found that discrimination did not occur, the complainant will be notified in writing and the procedure will be terminated. Notification will occur withina reasonable time of the original submission of the complaint. At that time the complainant will beadvised of their right to challenge the City of Avalon by submitting a written request for a hearing within five (5) days of the receipt of the determination.
If after the City of Avalon’s review of the complaint, it is found that discrimination may have occurred, a formal hearing will be held. The complainant will be notified of this determination within reasonable time of the submission of the complaint. The hearing will occur on an available and mutually agreed upon dateamong both parties and will be attended by the City of Avalon, the complainant and the appropriate personnel. Following the hearing, the City of Avalon will make a final determination. The complainant will be notified of this determination in writing ten (10) business days of the hearing. If justified,appropriate remedial action will be taken. The decision will be considered final at the City level.
If the Administrator finds that discrimination did not occur, the complainant will be notified of that disposition and will advise the complainant of their right to submit their complaint to the Federal Transit Administration for further investigation.
Complaint forms are available on the City of Avalon’s website. The forms are also available at the City of Avalon City Manager’s office upon request. The general complaint procedure is available on the City’swebsite. The detailed complaint procedure noted above will be made available to members of the public upon request. Provisions will be made for persons with limited English proficiency.
The following document is the complaint form:
City of Avalon Title V Compaint Form
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P.O. IJCDX /0/
AVALON, CA 90704
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3. Recording Title VI Investigations, Complaints, and Lawsuits In order to comply with CFR 49 Section 129(b) the City of Avalon will prepare and maintain a list of any active Title VI investigations conducted by the City or any other entities other than the FTA, lawsuits, orcomplaints naming the City of Avalon and/or its subcontractor(s) that allege discrimination on the basisof race, color, or national origin. This list will include:
• The date of the investigation, lawsuit, or complaint was filed;• A summary of the allegation(s);• The status of the investigation, lawsuit, or complaint; and• Actions taken by the City or subcontractor in response to investigation, lawsuit, or complaint To date, the City of Avalon has no transit related Title VI complaints, investigations, or lawsuits.4. Council’s Resolution Approving Title VI Program The Title VI Plan was presented to the Avalon City Council for their approval at the City of Avalon City Council Meeting, August 4, 2026. This Title VI Plan was approved by Resolution XXXX. (Attachment A).5. Provision of Additional Information to the FTA The City of Avalon will provide the Federal Transit Administration (FTA) additional information upon request. Such information may be related to, but not limited to, investigation of complaints of discrimination or to resolve concerns about possible noncompliance with Title VI.
In addition, the City of Avalon will submit an updated Title VI Plan to METRO, as the pass through agency for FTA Section 5309 fund, once every three (3) years and will include proof of submittals.
Ill. Inclusive Public Participation
Avalon is committed to encouraging public participation for the Cabrillo Mole Ferry Terminal Project, as community support is critical to the success of the project. The City has obtained Section 5039 federalassistance for the construction and installation of passenger amenities and structural improvements for the Cabrillo Mole Ferry Terminal.All residents of Avalon that use the Cabrillo Mole Ferry Terminal, and all residents that will use and benefitfrom the Cabrillo Mole Ferry Terminal Rehabilitation Project are encouraged to participate in the design of the project. The City of Avalon will seek input from residents during significant phases of the projectand provide regular updates to the community and City Council as the Project moves through the designand construction process.
Avalon’s public participation planning ensures that:
• Residents with concerns or interests will have an appropriate opportunity to participate in decisions about the Cabrillo Mole Ferry Terminal Rehabilitation Project, and will be notified of these opportunities to provide input.
• Community Involvement and contribution will be included in the development of the Project, passenger amenities and improvements to Cabrillo Mole.
• Concerns of all persons or groups participating in the process, uses of the Cabrillo Mole Ferry Terminal will be considered in Plan.
• Avalon will seek out and facilitate the involvement of those potentially impacted.
The Public Participation Plan outlines the importance of, and specific guidelines for, community engagement. Included is the information about the value of public participation to the development of the Cabrillo Mole Ferry Terminal Rehabilitation Project, the location and development of passenger amenities and improvements at the Cabrillo Mole, and how it will be accomplished. It is important to note that this Public Participation Plan will utilize a variety of communication mechanisms so all residents will have the opportunity to participate.
1. Opportunities for Public Participation
Numerous outreach methods will be used to gather community input and keep residents informed onparticipation opportunities, as well as to inform residents of added infrastructure and improvements to the Cabrillo Mole Ferry Terminal, at project completion.
COMMUNITY MEETINGS
Community meetings will be scheduled at critical points during the project to allow for targetedcommunity input. A community meeting will be scheduled to allow the best opportunity for attendance by the general public, and time most convenient to the general public. All community meetings willinclude a presentation/update on the Cabrillo Mole Ferry Terminal Rehabilitation Project followed by a question and answer session to ensure the participants are equally informed. The following will also beconsidered in establishing the locations and scheduling times for community meetings:
• Convenience and accessibility for minorities, persons with disabilities, and LEP communities by hosting meetings in areas of the City that are accessible by public transit and near the development;
• Meetings hosted in ADA accessible buildings;• Meetings scheduled at various times of the day/week to allow for residents to attend and participate, despite work and family obligations;
• Size of the venue and format of the meeting to allow for meaningful dialogue;• Engaging meeting materials to facilitate participation.
MARKETING MATERIALS
Marketing materials notify the public of community meetings, project updates, and available Cabrillo Mole Ferry Terminal Project passenger amenities upon project completion will be broadly advertised, in order to seek community input and inform residents. Methods may include:
• Handouts distributed to key destinations in Avalon (English and Spanish) including City Hall, Avalon Public Library and Post Office Arcade;
• Flyers mailed to all box holders;• City’s webpage www.cityofavalon.gov (English and Spanish);• Social media conduits;• Distribution of marketing materials to special interest and community groups, such as the Senior Center, Rotary Club, Lions Club, Women’s Forum and Chamber of Commerce; • Notification of available translation services for persons with limited English proficiencies for meetings.
2. Public Involvement Process
Measures taken will be targeted to overcome linguistic, institutional, cultural, economic, or other barriers that may prevent minority and low income people and populations, persons with disabilities and personswith limited English proficiency (LEP) from effectively participating in the development of the Cabrillo Mole Ferry Terminal Rehabilitation Project. By making a reasonable effort to include these populations, Avalon hopes to ensure that the interests and input of all residents is given equal consideration, and that the needs of the LEP population are addressed.The City of Avalon’s Title VI Plan provided a Language Assistance Plan to encourage participation of LEP individuals in the Cabrillo Mole Ferry Terminal Rehabilitation Project process, and notify LEP person of opportunities to provide input.
3. Next Steps
A complete record of public comments and input received from community meetings during the development of the Cabrillo Mole Ferry Terminal Rehabilitation Project will be summarized and presented to the City Council; the public can access and download these City Council presentations atwww.cityofavalon.gov. City staff will also regularly update Council throughout the design of the Project.
Input gathered during the outreach process will be used by City staff in developing a preferred design concept for the Cabrillo Mole Ferry Terminal which will be presented to Council for consideration andapproval.Community workshops/Public Meetings will be held regarding the Cabrillo Mole Ferry Terminal Rehabilitation Project when the project begins. This is a new grant and a new project therefore there hasbeen no public participation within the last three years.
IV. Language Assistance Plan
The language assistance Plan is one component of Avalon’s efforts to provide an appropriate mix of language assistance measures so all residents, including individuals that are “limited English proficient”, can equally contribute to the development of the Cabrillo Mole Ferry Terminal Rehabilitation Project and benefit from passenger amenities and improvements at the Cabrillo Mole. Limited English proficient (LEP) individuals are those who do not speak English as their primary language, and have limited availability toread, write, or understand English.
This Plan will outline how to identify any resident who may need language assistance, ways in which assistance may be provided, and how to notify LEP persons that assistance is available. Efforts toeffectively engage LEP individuals will ensure that interests and input of all residents is given equalconsideration in the development of the Cabrillo Mole Ferry Terminal Rehabilitation Project.
BACKGROUND
Title VI of the Civil Rights Act of 1964 provides that no person in the United States shaH, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or beotherwise subjected to discrimination under any program or activity that receives federal financialassistance. Title VI regulations have been interpreted to hold that Title VI prohibits conduct that has disproportionate effect on LEP persons because such conduct constitutes a form of national origindiscrimination.
Avalon’s Language Assistance Plan has been prepared to address the City’s responsibilities as a recipient of federal assistance for the Cabrillo Mole Ferry Terminal Rehabilitation Project. The City will use section5309 federal funds for the construction and installation of passenger amenities and structuralimprovements mole itself. Funds will be used for rehabilitation of the underside of the Cabrillo Mole and shade structure on the top of the terminal.
As a first state to engage LEP individuals Cabrillo Mole Ferry Terminal Rehabilitation Project efforts, the City of Avalon undertook the U.S. Department of Transportation (U.S. DOT) four factor LEP analysis which considers the following factors:
1. The number or proportion of LEP persons in the service area who may be served or are likely to encounter programs, activities, or services at the Cabrillo Mole Ferry Terminal.
2. The frequency with which LEP persons come in contact with the programs, activities, and services at the Cabrillo Mole Ferry Terminal.
3. The nature and importance of programs, activities, and services provided at the Cabrillo Mole Ferry Terminal to the LEP population.
4. Resources available to the City of Avalon and overall cost to provide LEP assistance.
A summary of the results of the four-factor analysis is in the following section.
1. Four Factor Analysis1. The number of proportion of LEP persons in the service area who may be served or are likely to encounter passenger amenities and improvements at the Cabrillo Mole Ferry Terminal.
The City of Avalon will utilize Section 5309 federal assistance for the construction and installation of passenger amenities and improvements at the Cabrillo Mole Ferry Terminal. All Avalon residents that currently use the Cabrillo Mole Ferry Terminal will likely encounter these amenities and improvements.
As such, the number or proportion of LEP served or encountered as part of the project is based on information from the Census below:
Language Spoken at Home
47.4%
LanquaqeCtt Thafl Cnghsh Sokcnat Ion’on ZT$5
45.3%
LanOusge Cthcr Than LnqSsh Stx ,at Ik’2mn 0sl6,.’l 1’::1 ,c.n-:.-:. 5 Yea’ “a:’ Types ol Language Spoken at Home .in
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Table ‘Esp’aj .“2r’2r-, brr-:r - The City of Avalon assessed the following information about LEP persons to determine the number or proportion of LEP persons who might use the passenger amenities and improvements at the Cabrillo Mole Ferry Terminal based on the 2008-2012 American Community Survey Five-Year Estimates from the U.S.
Census. The City of Avalon determined that out of a population of 3,715 residents less than 1,000 persons (under 5% of our service area) met the Safe Harbor Provision threshold for the translation of vital documents.
2. The frequency in which LEP come in contact with passenger amenities and improvements at Cabrillo Mole Ferry Terminal.
The frequency in which LEP come in contact with the passenger amenities and improvements at Cabrillo Mole Ferry Terminal is determined by Avalon’s existing LEP population and the fact the Cabrillo Mole Ferry Terminal is the ONLY transportation hub located in the City of Avalon therefore the entire existing LEP population will come in contact with ourferry services. Passenger amenities and improvements at Cabrillo Mole Ferry Terminal serve as the entryway to the City of Avalon and include a transit plaza that serves the existing fixed route, taxi and paratransit activities along with fixed route ferry service to and from the mainland.
3. The importance of the Cabrillo Mole Ferry Terminal to People’s Lives Access to the Cabrillo Mole Ferry Terminal is critical to the lives of all residents. The Cabrillo Mole Ferry Terminal is the only terminal in the City of Avalon to access the ferry service to and from the mainland.All residents depend on facility to access essential services like employment, shopping, medical appointments and higher education. The Cabrillo Mole Ferry Terminal is the only terminal to access the fixed route ferry system, all residents and visitors utilize the terminal.
4. Resource available to the City of Avalon and overall cost to provide LEP assistance.
Financial resources available within the current budget for marketing to or communicating with LEP persons in their language are minimal. However through development of the Cabrillo Mole Ferry TerminalPlan and development of the passenger amenities at the Cabrillo Mole Ferry Terminal, the City of Avalon intends to actively engage the LEP community.
While the LEP Spanish speaking community constitutes a small percentage of the residents of the City ofAvalon, the City of Avalon will take proactive measures to ensure that vital information and opportunities for involvement are available to the LEP Spanish speaking community. This LEP population will be notified of opportunities to provide input during the Cabrillo Mole Ferry Terminal planning process, in a formateasily understood by the identified populations. The City will strive to provide flyers in English and Spanish at key destinations in Avalon and information on the City’s webpage www.cityofavalon.gov.
2. Language Assistance Measures
The results of the Four Factor Analysis concluded that no LEP language group met the threshold for the Safe Harbor Provision. Spanish was the largest LEP language group with 822 individuals identifying asspeaking English less than very well. For this reason, the City of Avalon will focus its LEP outreach to Spanish speaking individuals. Language measures currently used or planned to be used by the City ofAvalon to address the needs of LEP person include the following:
• Vital documents including the Civil Rights Notice, Title VI Complaint Form, and Title VI Complaint Procedures will include a sentence in Spanish informing patrons of language assistance. • Spanish Translation of vital documents upon request.• Translating marketing material into Spanish If needed, arranging for availability of oral translators depending on availability • Interactive meeting materials to engage LEP individuals in the planning process • Posting notices in appropriate languages informing LEP persons of available transit services, routes, and amenities; and during the Cabrillo Mole planning process, opportunities for LEPpersons to provide input Avalon will continue to seek ways to add notices to the City website to inform LEP populations of opportunities for input and project construction.
3. Staff Training
To ensure effective implementation of this plan, the City of Avalon will schedule training at orientationsfor new City staff and relevant employees on an annual basis to review:
• Avalon’s Language Assistance Plan• Demographic data about the local LEP populations• Printed LEP persons’ materials
4. Notice to LEP Persons about Available Language Assistance The City of Avalon is working toward being able to notify LEP person in their own language about the language assistance available to them without cost by using the following methods and will notify LEPpersons after the Title VI Program is approved:
• Webpage notices
• Information at local events, City Hall, and the Avalor Branch of the Los Angeies County Public Library and brochures
• Sending information to local organizations (service cIubs ,churches ,schools) V. Decision Making Bodies
Body Caucasian Latino African Asian Native Other
American American American
Planning 6 1 0 0 0 0
Commission
Body Caucasian Latino African Asian Native Other
American American American
City Council 3 2 0 0 0 0
Membership on the Planning Commission is open to the public, however there is a requirement that members be residents of the City of Avalon. The City of Avalon recruits throughout the community, including advertisements in local newspapers, local cable and the City of Avalonwebpage to encourage participation on boards and committees.City Council Members are elected officials.
VI. Program Specific Requirements
The Cabrillo Mole Ferry Terminal Rehabilitation Project is the rehabilitation of an existing terminal. Equity analysis is not necessary as the project does not propose to construct a new facility, It is anticipated the project will be Categorically Exempt under CEQA Guidelines becausethe project is primarily rehabilitation. For this reason we will not conduct a full Title VI equity analysis, but will engage the public in the planning process and document our public engagement.
The Cabrillo Mole Ferry Terminal will construct a new terminal and amenities. This project will required a full Title VI equity analysis and will require full CEQA and NEPA Guidelines. The equity analysis will include, but not limited to:
• Public Dissemination. Work with Transportation staff to develop and disseminate Title VI program information to Transportation Staff, Specialists, and sub-recipients, including contractors, subcontractors, consultants and beneficiaries, as well as the general public.
Public dissemination may include postings of official statements, inclusion of Title VI language in contracts or other agreements, website postings, annual publication of the City’s Transportation Title VI Policy Statement in newspaper(s) having general circulation,and informational brochures. Ensure public service announcements or notices are postedof proposed projects, hearings, meetings, or formation of public advisory boards, in newspapers or other media reach the affecteci community. Ensure the reasonable utilization of available minority publications or media; and, where appropriate, provide written or verbal information in languages other than English. • Environmental Impact Statements. Ensure that available census data are included as part of all Environmental Impact Statements/Assessments conducted by Transportation for projects receiving Federal Highway Administration or other Federal Assistance. • Elimination of Discrimination. Work with Human Resources and other City departments to establish procedures for promptly resolving deficiencies, as needed. Recommend procedures to identify and eliminate discrimination that may be discovered in any Transportation process.
• Maintain Legislative and Procedural Information. Federal laws, rules, regulations, WSDOT guidelines, the current Transportation Title VI Plan, Annual Accomplishment Reports, and other resource information pertaining to the implementation and administration of the Department’s Title VI program will maintained and updated by the Coordinator.Information will be made available to other City departments or the public as requested or required.
VII. Grants, Reviews and Certifications
• Pending Applications for Financial Assistance
The City of Avalon has no pending applications for financial assistance from any federal agency other than the ETA.
• Pending FTA Grants
Cabrillo Mole Ferry Terminal Grant
• Open FTAGrants
Cabrillo Mole Ferry Terminal Rehabilitation Grant
• Civil Rights Compliance Reviews in the Past 3 Years
This is the fourth Civil Rights Compliance Plan for the City of Avalon. • Recent Annual Certifications and Assurances
The City is with current ETA contracts that require certifications or assurances. • Previous Triennial Review Findings
The City has not had Triennial reviews.
CONTACT
For additional information or the City of Avalon’s Title VI Plan, or its efforts to comply with the Civil Rights Act of 1964 or Executive Order 13166 Improving Access to Services for Persons with Limited English Proficiency, please contact:
City of Avalon
Attention: City Manager’s Office
P.O. Box 707
Avalon, CA 90704
[email protected]
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: _______ ORIGINATING DEP: Finance Department CITY MANAGER: ________ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Ordinance enacting Section 3-3.422 “Short-Term Rental Facilitator Reporting” to the Municipal Code
RECOMMENDED ACTION(S): Adopt the ordinance enacting Section 3-3.422 “Short-TermRental Facilitator Reporting” to the Avalon Municipal Code.
REPORT SUMMARY: This ordinance was introduced and all further readings were waived during the July 28, 2026 regular City Council Meeting.
The Short-Term Rental Facilitator Act of 2025 was enacted by Senate Bill 346 (Durazo). TheAct provides a mechanism for cities to receive reporting regarding STRs operating in their jurisdiction. Once a city invokes the Act by ordinance, the Act requires online platforms like Airbnb and VRBO (defined in the statute as “short-term rental facilitators”) to identify and report short-term rentals in the city. This information helps cities to identify STRs that operate illegally, as well as to enforce their TOT ordinances and collect taxes that STR operators owe.
The Act expressly allows a city to require monthly reporting because the City requires TOT to be remitted monthly.
The Act also expressly allows a city to establish administrative fines for reporting violations.
The proposed ordinance makes the reporting requirements under the Act a part of the City’s STR ordinance; it makes violation of the reporting requirements an infraction; and it establishes administrative fines of up to $5,000 per violation, in accordance with state law. (Gov. Code § 53069.4, 36900(d).)
Adopting the proposed ordinance will require STR facilitators to report STRs in the City, whichwill help the City to collect TOT and enforce the City’s STR regulations. This in turn will help increase revenue to the City’s general fund and help protect public health, safety, and welfare.
ENVIRONMENTAL REVIEW: Adoption of the proposed ordinance is exempt from theCalifornia Environmental Quality Act (“CEQA”) under Section 15378 because the activity is not a “project” subject to CEQA. (Cal. Code Regs. Tit. 14, § 15378.) Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (Cal.
Code Regs. Tit. 14, § 15378(a).) These measures are not expected to result in any direct or reasonably foreseeable indirect physical change in the environment, and thus adoption of theordinance is not a “project” under CEQA. Moreover, the City Council finds that even if adopting this ordinance were considered a “project,” it is exempt from CEQA under State CEQA Guidelines section 15061(b)(3), the “common sense” exemption, because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the
environment. (Cal. Code Regs. Tit. 14, §15061(b)(3).)
ATTACHMENTS: Ordinance
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AVALON ENACTING SECTION 3-3.422 “SHORT-TERM RENTAL FACILITATOR REPORTING” OF THE
AVALON MUNICIPAL CODE TO REQUIRE REPORTING IN ACCORDANCE WITH SB 346; AND FINDING THAT THE ACTION DOES NOT QUALIFY AS A PROJECT SUBJECT TO CEQA UNDER STATE CEQA GUIDELINES SECTION 15378 AND IS
OTHERWISE EXEMPT FROM CEQA UNDER STATE CEQA GUIDELINES SECTION 15061(B)(3)
WHEREAS, the Legislature enacted Senate Bill 346 (Durazo), known as the ShortTerm Rental Facilitator Act of 2025, to address enforcement challenges faced by local jurisdictions by authorizing reporting requirements and cooperation obligations for online companies and other short-term rental facilitators; and WHEREAS, the City Council finds that adopting regulations consistent with state law will promote compliance, transparency, and effective local enforcement; NOW, THEREFORE, the City Council of the City of Avalon, California, does ordain as follows:SECTION 1. Section 3-3.422 Enacted. Avalon Municipal Code Section 3-3.422 “Short Term Rental Facilitator Reporting,” is hereby enacted to read in full as set forth herein:
3-3.422 Short-Term Rental Facilitator Collection and Reporting.
A. Application of Short-Term Rental Facilitator Act of 2025. The provisions of Chapter 4.6 (commencing with Section 50990) of Part 1 of Division 1 of Title 5of the Government Code are hereby made applicable within the city’s jurisdictionalboundaries.
B. Definitions. For purposes of this section, “marketplace,” “short-term rental” and “short-term rental facilitator” each has have the same meaning as in Government Code section 50991, and “operator” means a person who lists a short-term rental for rent on a marketplace operated by a short-term rental facilitator.
C. Reporting.
1. Reporting Required Monthly. Each short-term rental facilitator must report, in the form and manner prescribed by the City Finance Director, thephysical address, including nine-digit ZIP Code of each short-term rental occurring in the prior calendar month, by no later than the twentieth day of the following month. This requirement constitutes the city’s “request” under Government Code section 50993(a).
55414.0004471576011
2. Additional Information. If the above information in not sufficient, the City Finance Director may request, if necessary to identify a short-term rental, the following:
a. The assessor parcel number of each short-term rental. b. The URL associated with the specific short-term rental listing. c. Information exclusively related to the identification of anaccessory dwelling unit, guest house, or single unit of a timeshare or multifamily housing project located at a single address that is located at the address or assessor parcel number requested.
3. Audit. The Finance Director may conduct an audit or otherwise examine the records of the short-term rental facilitator documenting the receipt of the transient occupancy tax due and payable to the city.
D. Penalties. Notwithstanding anything else in this code, a violation of this section is punishable as a criminal misdemeanor and is also subject to anadministrative citation and assessment of an administrative fine as established by resolution of the City Council, consistent with Government Code section 53069.4.Each listing that is not reported as required and each day that a violation occurs is a new, separate violation.
SECTION 2. CEQA. The City Council finds that adoption of this ordinance is exempt fromthe California Environmental Quality Act (CEQA”) under Section 15378 because theactivity is not a “project” subject to CEQA. (14 Cal. Code Regs. § 15378.) Section 15378defines a project as an activity that “has a potential for resulting in either a direct physicalchange in the environment, or a reasonably foreseeable indirect physical change in theenvironment.” (14 Cal. Code Regs. § 15378(a).) These measures are not expected to result in any direct or reasonably foreseeable indirect physical change in the environment, and thus adoption of the ordinance is not a “project” under CEQA. Moreover, the citycouncil finds that even if adopting this ordinance were considered a “project,” it is exempt from CEQA under State CEQA Guidelines section 15061(b)(3), the “common sense”exemption, because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).)SECTION 3. Severability. If any portion of this ordinance or any application thereof toany person or circumstance is held to be invalid or unconstitutional by a decision of acourt of competent jurisdiction or preempted by state legislation, the invalidating decisionor legislation does not affect the validity of the remaining portions of the ordinance. Thecity council hereby declares that it would have adopted this ordinance without the invalid portion.
SECTION 4. Effective Date and Posting. This ordinance takes effect 30 days following its adoption by the City Council.
55414.0004471576011
SECTION 5. Posting and Publication. The city clerk is hereby directed to post or publish this ordinance as required by Government Code section 36933.
INTRODUCED AND FIRST READ at the meeting of the city council of the city of Avalon, California, on the 28th day of July, 2026, and thereafter ADOPTED at a regular meeting of the city council held on the 4th day of August, 2026, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
Ann H. Marshall, MAYOR
ATTEST:
Gabrielle Morones, CITY CLERK
55414.0004471576011
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: 5
ORIGINATING DEPT: Administration CITY MANAGER: _________ PREPARED BY: Devin Hart, Senior Management Analyst SUBJECT: Planning Commission Appointments
RECOMMENDED ACTION(S): 1. Discuss applications received. 2. Consider the recommendation of Mayor Ann H. Marshall. 3. Make an appointment for three individuals to serve as Planning Commissioner for four-year terms expiring June 30, 2030. 4. Make anappointment for one individual to serve as Alternate Planning Commissioner for a two-year term expiring June 30, 2028.
REPORT SUMMARY: The Planning Commission is a seven person commission with one optional alternate member. Planning Commissioners serve four-year terms. Alternate Planning Commissioners serve two-year terms.
Per the Avalon Municipal Code Section 9-1.01: “Only those persons who are physically present in the City of Avalon or within two (2) miles of the City limits at least nine (9) months of each calendar year (excluding special circumstances such as extended personal or family illness, temporaiy absences necessitated by the proposed appointee’s employment, militaty seivice, and similar situations). The members shall be appointed by the Mayor with theapproval of the Council. The tenure of any member of the Planning Commission shall beterminable at any time by the Mayor upon the affirmative vote of a majority of the entire Council.”
The terms for three (3) of the current Planning Commissioners expired on June 30, 2026. The recruitment period for Planning Commissioners for the 2026-2030 period were publicly noticedin the Islander, on the City’s website, and throughout the City’s social media platforms. The application period was open from May 1 to June 8, 2026.
The City received six applications for the positions by the stated deadline (listed alphabetically) — Susanna Gutierrez, Robert Kennedy, Sandra Putnam, Jessica Romero, Jessica Romo and Kathy Smith.Mayor Ann Marshall and Councilmember Lisa Lavelle conducted interviews with the applicants on June 15, 2026.
Mayor Marshall will provide her recommendations to the City Council at the meeting.
GOAL ALIGNMENT: Efficient government processes.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The PlanningCommission will have vacancies and may not have a quorum to conduct business.FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS: None.
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: (9
ORIGINATING DEP: Administration CITY MANAGER:_______
PREPARED BY: David Maistros, City Manager
SUBJECT: Civic Center Housing Project — Feasibility Analysis RECOMMENDED ACTION(S): 1. Receive the Civic Center Housing Project Financial Feasibility Analysis prepared by RSG; 2. Direct staff to not advance Phase 2 or Phase 3A; 3. Reject all bids received for Phase 3B and Phase 3C; 4. Direct staff to explore options to determine whether qualified nonprofit housing developers are interested in developing and operating the proposed housing project.
REPORT SUMMARY: The City of Avalon continues to evaluate strategies to increase workforce and year-round housing opportunities consistent with the goals and policies outlined in the City’s 2021—2029 Housing Element. Goal V.C. and Policy V-16 identify the need to provide a varietyof housing types, including workforce and seasonal employee housing, to support Avalon residents and employers.
To address these needs, the City identified publicly owned property adjacent to the Avalon Civic Center as a potential site for development. City Staff modeled and developed a 26-unit modular workforce housing project consisting of: (6) studio efficiency units, (10) one-bedroom units; and (10) two-bedroom units.
In December 2024, the City Council authorized issuance of a Request for Proposals (RFP”) for development of the Project. The RFP contemplated the following process, and updates to this process are included below:
Phase 1: Pre-construction design, engineering, planning, and cost refinement; andPhase 2: Manufacturing, delivery, and installation of modular housing units.
On May 6, 2025, the City Council authorized an agreement with US-Offsite to complete Phase 1 services. As part of that process, the City retained RSG to evaluate development structures, management models, and financial feasibility associated with the Project.
On December 15, 2025, the City published RFPs for Phase 3A: Site Preparation and 3B:
Modular Unit Construction. On March 17, 2026 City Council rejected bids on 3A and approvedreissuing 3B (due to receiving no qualified bids). On March 24, 2026 the City published RFPs for 3B: Delivery and Setting of Modular Units and 3C: Post Setting (formerly combined into 3B).
On April 23, 2026, the City received qualified bids for both reissued Phase 3B and 3C.
RSG’s financial feasibility analysis concluded that while the proposed Project may generate sufficient operating income to cover ongoing operational expenses, the Project remains financially constrained due to high development costs relative to anticipated rental revenues.
Key findings from the analysis include:
• Estimated total development cost of approximately $10.7 million;• Estimated construction cost of approximately $410,758 per unit;• Projected annual gross rental revenue of approximately $864,000; • Stabilized net operating income of approximately $471,169;• Initial debt service coverage ratio (“DSCR”) of approximately 1 .01; and• Development yield of approximately 4.4%, below typical market feasibility thresholds.
RSG noted that conventional multifamily lenders generally require a minimum stabilized DSCR of approximately 1 .20 and that market-rate multifamily projects in Los Angeles County generally target development yields near 6.0%.The analysis concluded that the Project would likely be infeasible for a private market-ratedeveloper without public subsidy or alternative financing structures. While the City may consideralternative underwriting standards due to its policy objectives, RSG emphasized that the proposed Project may present financial risk to the City’s General Fund if revenues, occupancy,or operating assumptions do not perform as projected.
Development and Operational Risk
The feasibility analysis further outlines substantial risks associated with the City acting as developer, lender, equity partner, asset manager, and/or property manager.Should the City proceed as developer, the City would assume responsibility for:
• Construction oversight and project management;
• Budget and schedule management;
• Insurance and contingency funding;• Regulatory compliance;• Ongoing asset management; and• Day-to-day property management operations.
In addition, the City would be responsible for the future maintenance obligations, and long-term capital replacement requirements. While none of these items is a complete deterrent to the City initiating this project, combined with the existing interest rate market the current risks are toohigh.
Although a long-term ground lease structure with a third-party developer could reduce some financial and operational risks, the analysis notes that such a structure would likely trigger compliance with the California Surplus Land Act (‘SLA”), potentially extending timelines and limiting flexibility regarding workforce housing objectives.
RSG also indicated that developer interest in the site may be limited due to current construction costs, project scale, and the competitive nature of affordable housing financing programs.
Capital Improvement Priorities
In addition to the financial risks identified in the feasibility analysis, the City is currently undertaking or preparing for several major capital infrastructure investments, including:
• Cabrillo Ferry Terminal Project
• Five Corners Utility & Traffic Safety Improvement Project • Pebbly Beach Landfill Life Site Optimization Project• Pebbly Beach Revetment and Roadway Project• South Beach Restoration Project These projects represent significant long-term infrastructure and financial commitments that are critical to maintaining essential public services and operational resiliency throughout thecommunity. Although all the foregoing projects are tied to grant funding, the City will experience a financial lag before receiving reimbursement for grant funded expenses. This liquidity risk mustbe acknowledged and conservatively managed.Given the scale of these existing obligations, proceeding with the Civic Center Housing Project without substantial outside grant funding, subsidy, or development participation could place additional strain on City financial resources and staffing capacity.
Staff is actively engaged in pursuing alternate funding sources for this Project by way of Federal Earmarks and state and county grant opportunities. Staff is confident that funding options will present themselves in the near future and this project will be able to advance to the next stage soon.
Accordingly, staff recommends the City defer advancement of Phase 2 and Phase 3A (and additional phases) until outside funding sources are identified and secured sufficient to substantially reduce risk exposure to the General Fund and to reject all bids received for Phase 3B and 3C pursuant to AMC 3-4-206 (d) Rejection of Bids.
OPTION: Staff recommends exploring options to evaluate market interest from qualified nonprofit or mission-driven housing developers, including but not limited to, the issuance of a Request for Information (“RFI”).
The purpose of the RFI would be to:
• Assess developer interest in the site;• Identify potential partnership structures;• Evaluate alternative financing approaches;• Determine whether a third-party entity could assume development, asset management, and property management responsibilities; and • Explore opportunities to maintain City land ownership through a ground lease or similar disposition structure.
The RFI process could provide the City with additional information regarding potential development partnerships while preserving flexibility and minimizing immediate financial commitments.
FISCAL IMPACTS: At this time, no additional fiscal appropriation is recommended.
GOAL ALIGNMENT: Not applicable.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Council action could potentially increase near-term financial risk.FOLLOW UP ACTION: Wait for change in financial landscape, continue to explore funding options and Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
. RSG Civic Center Housing Project Feasibility Analysis Memorandum F) C (
BETTER COMMUNITIES.
8OLLJER FUTURES.
Date: April 10, 2026
To: Jocelyn Francis, Assistant City Manager
City of Avalon
From: Tara Broughton, Principal
Brandon Fender, Senior Associate
Annie Holder, Associate
SUBJECT: CIVIC CENTER HOUSING PROJECT - PROPERTY DISPOSITION AND FINANCIAL FEASIBILITY ANALYSISThe City of Avalon (“City”) is looking for ways to provide additional housing optionsfor residents and workers. The City retained RSG to provide advisory services related to the evaluation and analysis of the development and management of aproposed housing project on publicly owned property adjacent to the Avalon CivicCenter (“Project”). This effort is part of the City’s broader strategy to meet the goals outlined in its 2021-2029 Housing Element (“Housing Element”).
This memorandum summarizes key factors affecting development risk, operational responsibility, and long-term financial sustainability, while supporting the City’s goal of retaining public ownership of the site. The scenarios outlined below identify potential risks, mitigation strategies, and benefits associated with different project disposition, development, and management structures. The memorandum alsodiscusses how these scenarios interact with the Surplus Land Act (“SLA”).
The scenarios evaluated include:
• The City retaining fee simple site ownership, overseeing the Project development phase and contracting asset and property management to a third-party, or
• Ground-leasing the site to a third-party.
In addition, this memorandum describes the roles contributing to the development process and ongoing property management, along with the risks, benefits, and additional considerations that the City will want to carefully evaluate before proceeding with Phase 2 of the Project. RSG also outlined this information in Attachment A — Roles and Responsibilities.
BACKGROUND
The Housing Element outlines goals for housing inventory development to meetfuture housing needs. Goal V.C. addressed the adequacy of available housing sites in the city to meet housing demand. The goal states to “provide for the developmentof a variety of housing types in Avalon, and attain dignified, safe, and affordable SAN DIEGO . LOS ANGELES OAKLAND
170 Eucalyptus Aye, Suite 200, Vista, CA 92084 I 714.541.4585 I rsgsolutions.com Jocelyn Francis, Assistant City Manager
April 10, 2026
housing opportunities within decent living environment for households of allsocioeconomic segments in Avalon.” Policy V-16 addresses the need to provide “residential development opportunities in the City, including year-round housing and seasonal employee housing.” The lack of housing opportunities for thesepopulations is limiting Avalon employers’ ability to secure and retain a talented workforce. Many of these individuals are commuting onto the island for work or are staying in hotel-like rooms for seasonal employment.
The City has begun implementing policies to address the shortage of year-round housing and seasonal employee housing. Below are some recent initiativesundertaken by the City:
• Collaborating with the Santa Catalina Island Company to develop dedicated seasonal housing for City staff.
• Implemented a program requiring hotels and resorts to provide rental housing for at least 50% of their peak-season staff, helping reduce seasonal housing demand within the City’s limited housing supply.
• Pursing the construction of housing on a city-owned property adjacent to the Avalon Civic Center. This initiative is the focus of this memorandum.
Proposed Project
The Project was initiated to address the shortage of workforce housing identified inthe Housing Element, which highlights the need for additional housing options for residents and employees working on the island. The City identified publicly ownedland adjacent to the Avalon Civic Center as a potential site for new workforcehousing and began evaluating development options to increase the local housing supply. The proposed Project will consist of a 26-unit modular housing complex with6 studios, 10 one-bedroom units, and 10 two-bedroom units.
In December 2024, the City Council authorized the issuance of a Request for Proposals (“REP”) for the development of a modular housing complex on the site.
The RFP outlined a two-phase development process. Phase I includes pre construction design, engineering, and planning services to refine the project design and confirm development cost. Phase 2 includes the manufacturing, delivery, and installation of the modular housing units. The RFP closed on March 3, 2025, and the City received three proposals. On May 6, 2025, the City Council authorized the City Manager to execute an agreement with US Offsite to complete Phase 1 services.
Upon completion of Phase 1, the City will evaluate whether to proceed with Phase
2. Additionally, the City is reviewing potential development and managementstructures for the Project prior to proceeding with Phase 2. The goal is to determinethe most appropriate development and management structure for the Project while maintaining City ownership of the land and ensuring financial feasibility of theProject. Furthermore, the City would like to understand and assess potential risk factors associated with various development and management structures for the Project.
Jocelyn Francis, Assistant City Manager
April 10, 2026
The development and management structure of a housing project will influence the allocation of development responsibilities, operational oversight, and long-term financial performance. At a high level, the City must determine how development, asset management, and day-to-day property management responsibilities will bestructured while maintaining its priority of retaining public ownership of the site.
These responsibilities may be carried out directly by the City or delegated to thirdparty partners depending on the selected development and management approach.To help evaluate these options, this section outlines the key roles involved in projectdevelopment and ongoing housing operations, including their respective responsibilities and areas of risk. The section also describes potential housingmanagement structures that could be used to operate the property and maintainlong-term financial and operational sustainability.Roles and Responsibilities The successful development and long-term operation of the Project will requiredistinct specializations that support planning, construction oversight, financial performance, and day-to-day property management. Each role carries specificresponsibilities that contribute to the overall feasibility and sustainability of the Project. The following sections describe the primary functions of the developer, asset manager, and property manager and how each contributes to the Project’ssuccess.
DeveloperDevelopers are responsible for coordinating all stages of project delivery and musthave financial, project management, and technical planning and construction expertise. At the initiation of a project, the developer evaluates the feasibility of the project and establishes a development plan. Effective project management and the ability to adapt to changing conditions are essential to maintaining the projectschedule and budget. Delays and cost increases can directly impact the financial feasibility of development. The developer is responsible for actively planning to limit and manage project delays through scheduling, budgeting, and value engineering perspectives. Finally, developers need technical knowledge of the general plan andplanning code, as well as the ability to monitor quality standards and safetyregulations during the vertical construction stage.
Asset ManagerAn asset manager provides long term oversight to protect the owner’s investment and ensure the property performs as intended. The asset manager is focused on financial planning, risk management, and maintaining the value of the development over time. The asset manager monitors operating revenues and expenses, manages reserve funds, and evaluates insurance needs. They also ensure compliance with regulatory requirements and guide capital improvement planning Jocelyn Francis, Assistant City Manager
April 10, 2026
so that maintenance needs are addressed in a timely and cost-effective manner.
Asset managers may also be involved in scheduling and oversight of large scale capital improvements to the property. Effective asset management helps stabilizeoperations, extend the useful life of the property, and support the financialsustainability of the project.Property Manager A property manager oversees the day-to-day operations of the property and its relationships with tenants. This includes maintaining a safe, habitable rentalproperty, leasing, rent collection, and oversight of maintenance and repairs.
Additionally, property managers administer tenant eligibility requirements, if applicable, and maintains compliance with relevant housing regulations. The property manager’s work directly affects the reputation and long-term performance of the property. Property managers may also be the liaison between the assetmanager and tenants, especially when capital improvements are necessary.
Effective property management requires clear communication with tenants, timely response to maintenance needs, and coordination with the owner and assetmanager to plan for ongoing building upkeep.Development Structures RSG reviewed potential development structures for the proposed Project, where the City retains ownership of the land. Retaining ownership of the site allows the City topursue one of two structures:
• Retain fee simple ownership and act in the role of developer, or• Create a leasehold estate under a ground lease with a third party engaged to develop and manage the Project.
The table below highlights the benefits, risks and considerations of both models.
Jocelyn Francis, Assistant City Manager
April 10, 2026
Table 1. Development Structures
Structure
Fee Simple: City oversees Maintains maximum Requires the City to dedicateCity as development and control over unit internal staff to oversee Developer contracts out designation, leasing contractors, budgets, management approach, and compliance, and
functions operational construction risks, or retain a
standards third-party construction
manager
The City would need to
maintain adequate insurance
coverage and contingency
funding to manage
development risk
Leasehold City retains land Reduces financial Lower City control overEstate: Long- and leases it to a and construction design details and tenant Term Ground private developer risk to the City selection strategy Lease to Third who assumes
Party development and Developer assumes Requires Surplus Land Act operational primary compliance and introduces responsibility responsibility for additional timeline steps construction costs,
financing, and
delivery risks
City As Developer
If the City acts as the developer, it will assume responsibility for coordinating the completion of the Project and managing associated risks. Before proceeding with Phase 2 of the Project, the City should evaluate its internal project management capacity and identify staff to oversee construction, contract administration, and schedule coordination. The City will also need to review the financial feasibility of the Project and establish a budget that accounts for potential delays, cost changes, and insurance requirements. When the City acts as the primary equity investor, the financial return requirements are likely to be different from those expected by private, market-rate developers. In this scenario, the City’s investment objectivesmay focus more on policy goals or public benefits rather than maximizing profit. As a result, the City may accept lower financial returns compared to private developers, prioritizing community outcomes, affordability, or other strategic objectives associated with the project. In addition, the City should plan to engage qualified third-party asset management and property management firms to support ongoing operations once the Project is complete.
Retaining legal advice to review contracts for clarity and setting up pro-active compliance procedures will lower risk for the Project. This may require specialcounsel. The City will need to be prepared to follow procurement requirements or restrictions throughout the development process. Because of the increased risk of Jocelyn Francis, Assistant City Manager
April 10, 2026
litigation, cities will often mitigate this risk through the creation of a separate restricted fund to shield the General Fund.Ground Lease to Third Party A ground lease is a common approach used by cities to reduce direct financial and construction risk while retaining ownership of the land. Under this model, the Cityleases the site to a private developer who is responsible for financing, constructing, and operating the housing. The City may also act as the primary equity investor,simplifying the financial capital stack. The structure brings development expertiseand shifts costs and delivery risks to the private developer, while the City maintains land ownership.Because the developer assumes responsibility for project delivery and performance, the City has less direct control over unit design, leasing practices, and long-termoperational decisions unless these are defined in the ground lease agreement andassociated regulatory documents. Clear contract terms and review by legal counselare necessary to establish expectations, insurance requirements, and performancestandards.
The City would continue to monitor compliance with the ground lease but would have limited involvement in day-to-day construction oversight or property operations. Along-term ground lease would require the City to follow the Surplus Land Act (“SLA”)process if the lease term exceeds 15 years. Typical ground lease terms range from30 to 99 years. The SLA includes required noticing and negotiation periods, whichmay affect the project schedule and feasibility depending on market interest and timing considerations.
Surplus Land Act Considerations
The California Surplus Land Act (“SLA”) governs the disposition of publicly owned land and prioritizes its use for affordable housing development. A ‘disposition” under the SLA includes the sale of public land or entering into a ground lease longer than 15 years, including extension options, as defined in Government Code Section 54221(d). If the City pursues a long-term ground lease for the site, the Project wouldlikely be subject to the SLA process.
Under the SLA, the City must issue a Notice of Availability to eligible entities, including affordable housing developers and certain public agencies. These entitieshave 60 days to express interest in the site. If interest is received, the City must engage in a minimum 90-day good-faith negotiation period with interested parties.
The City must also provide documentation to the California Department of Housing and Community Development demonstrating compliance with the SLA beforecompleting a disposition.
If mulUple eligible developers express interest, the City is generally required to prioritize proposals that provide the greatest number of affordable housing units at the deepest levels of affordability, consistent with the intent of the SLA to maximize Jocelyn Francis, Assistant City Manager
April 10, 2026
affordable housing outcomes on public land. As a result, the City’s flexibility inselecting a development partner may be influenced by the affordability levels and number of units proposed. Furthermore, because the SLA prioritizes proposals thatmaximize deeply income-restricted affordable housing, the City’s flexibility to pursue workforce housing serving moderate-income or local employees may be limited if competing proposals include a greater number of units restricted to very-low orextremely-low income households.Compliance with the SLA could add several months to the project timeline and mayinfluence the structure and feasibility of a long-term ground lease arrangement. Ifinterested in initiating the SLA process, the City will need to consider timelines, developer interest in the site, and current ground lease rates. RSG believes that thesite would attract limited interest from developers due to the competitiveness of taxcredit applications, current construction costs, and the location and size of the project.Management StructuresIn addition to determining the development structure for the Project, the City will need to determine how ongoing operations and long-term oversight of the property will be managed. Housing developments typically rely on two complementaryfunctions: asset management and property management. The City may choose to perform one or both functions internally or contract with qualified third-party firms depending on staffing capacity, expertise, and risk tolerance. The following sectionsdescribe these roles and the potential benefits, risks, and considerations associated with the City assuming these responsibilities.
Jocelyn Francis, Assistant City Manager
April 10, 2026
Asset Management
If the City elects to act as the asset manager for the Project, it will assume responsibility for long-term financial oversight, regulatory compliance, and capitalplanning to protect the City’s investment and ensure the Project performs in alignment with policy objectives. In this role, the City would monitor operating revenues and expenses, oversee reserve funding and insurance coverage, and evaluate the timing and funding of capital repairs and replacements. Assetmanagement responsibilities also include reviewing annual operating budgets,monitoring financial performance against projections, and ensuring that sufficientresources are set aside to address future maintenance needs and unexpected costs.
Before assuming this role, the City should evaluate its internal capacity and identify staff with expertise in real estate finance, compliance, and long-term capital planning. Inadequate asset management oversight could result in underfundedreserves, deferred maintenance, or compliance issues that negatively affect thelong-term viability of the Project. When the City’s investment objectives prioritize community outcomes and workforce housing goals over financial return, asset management plays a critical role in balancing financial sustainability with policypriorities. To mitigate risk, the City may consider developing formal assetmanagement policies and procedures and retaining a third-party asset management consultant to provide technical support, periodic financial reviews, and guidance oncomplex capital planning or regulatory matters.
Table 2. Asset Management Risk Assessment
Benefits -_________Risks -__________CorThnMaintains direct Requires experienced Need to dedicate staff oversight of the financial staff with expertise in time to monitor budget, performance and long- real estate finance, reserves, insurance, and term value of the Project compliance, and long- compliance term capital planning
Allows the City to Develop asset
ensure the property management policies
operates in alignment and procedures
with policy goals
May retain a third-party
Provides greater control asset manager
over capital planning consultantand reinvestmentdecisions Inadequate oversight
could lead to
underfunded reserves
or deferred
maintenance
Jocelyn Francis, Assistant City Manager
April 10, 2026
Property Management
If the City acts as the property manager, it will assume responsibility for the day-to-day operations of the Project and direct interaction with tenants. This includes leasing and marketing units, tenant selection and eligibility verification, rentcollection, responding to maintenance requests, coordinating repairs, and ensuring the property remains safe, habitable, and well-maintained. Acting as property manager would allow the City to directly implement workforce housing policies, enforce tenant requirements, and maintain close oversight of building operations and tenant relations.
However, property management is an operationally intensive function that requires dedicated staff, established systems, and familiarity with landlord-tenant laws and housing regulations. Direct involvement in daily operations may expose the City toincreased liability related to tenant disputes, fair housing compliance, andmaintenance or habitability issues. The City should carefully assess staffing capacity, training needs, and risk tolerance before assuming this role, as propertymanagement responsibilities may divert staff time from other municipal priorities. Toreduce operational risk, the City may develop formal property management policies and procedures and consider contracting with a qualified third-party property management firm while retaining oversight authority to ensure that leasing practices and tenant services remain aligned with City policy goals.
Table 3. Property Management Risk Assessment
BE
Provides the City with
direct control overleasing practices, tenant
selection, and property
operations
Operational Need to dedicate staff
responsibilities could time for this activity that
expose the City to is experienced with
increased liability, landlord-tenant
tenant disputes, or regulations
compliance issues
Allows the City to Develop property
directly implement Requires dedicated management policies workforce housing staff and operational and procedures
policies and tenant systems to manage
eligibility requirements leasing, rent collection, May retain a third-party maintenance property management Provides greater control coordination, and firm
over capital planning tenant communicationsand reinvestmentdecisions Resource-intensive and may divert staff time
from other City
Driorities
Jocelyn Francis, Assistant City Manager
April 10, 2026
FINANCIAL FEASIBILITY ANALYSISRSG’s financial feasibility analysis evaluates the proposed 26-unit multifamily development based on current construction costs, market-rate revenueassumptions, operating expenses, and multifamily financing benchmarks. Theanalysis indicates that the Project can generate sufficient operating income to cover ongoing expenses but remains financially constrained due to high developmentcosts and relatively modest rental revenues. With a total estimated construction costof approximately $10.7 million, the Project achieves a stabilized net operating income that exceeds projected debt service, but results in a marginal initial debt service coverage ratio and a development yield below market thresholds. While these metrics suggest the Project would be infeasible for a private developer, the City’s dual role as lender and equity partner, along with its broader policy objectives, provides flexibility to consider alternative underwriting standards when evaluating overall feasibility and risk. However, the proposed Project poses significant risk to the City’s General Fund if the Project does not perform as expected.
Construction Cost
The City received one bid for the proposed Project. The City estimated total cost is $10,679,700, which includes predevelopment architectural and engineering, off site manufacturing of modular units, site preparation, site improvements, on-sitemodular construction, roof and decking installation, mechanical, electrical, and plumbing, logistics, and a 10% contingency.
Table 4. Project Construction Costs
0 Predevelopment — Architectural and Engineering $ 200,000 1 Preconstruction Coordination $ 62,000
2 Off-Site Manufacturing $ 3,250,000
3a Site Preparation — Grading, Utilities, Foundation, On-Site Impr $ 1,975,000 3b On-Site Construction, Roof, Decking, Plumbing, Logistics $ 4,040,0003c Preparation of Staging Area, Elec/Switch Gear, PV Panels $ 50,000 4 Contingency $ 952,700
Total Cost $ 10,679,700
Cost per Square Foot $ 543Cost per Unit $ 410,758
RSG’s experience with Southern California multifamily housing in the last 5 years indicates that costs range from $499,000 to 828,000 per unit, with the weighted average cost per unit of $659,000. Based on RSG’s experience with multifamilydevelopments in Southern California, the total cost per unit for the proposed Project is below-average. However, the units in the proposed Project are smaller thanaverage units, and RSG anticipates some cost savings as a result of the modular construction methods.
Jocelyn Francis, Assistant City Manager
April 10, 2026
Beach Communities submarket: studios at $2,000, one-bedrooms at $2,500, and two-bedrooms at $3,500. An annual 3% rent increase and a 5% vacancy deduction were included. No revenue was assumed from laundry, vending, or parking. As illustrated in Table 5, the Project is anticipated to generate of gross annual rental income of $864,000. After accounting for vacancy losses of $43,200, the effective gross income comes out to $820,800 annually.
Table 5. Project Revenues and Revenue Assumptions
$1$ 300,000$ 420,000
Subtotal — Annual Rental Income $ 864,000
Less Vacancy ($ 43,200)Effective Gross Income $ 820,800 Expenses
The City and RSG created estimates for the Project’s expenses. RSG calculated property taxes as I % of the total construction cost. Market average costs per unit derived from Costar were used to estimate property insurance, repairs and maintenance, management fees, payroll and benefits, and professional fees. The City provided utility cost estimates per unit for sewer, saltwater, and solid waste, which are all billed with property taxes. RSG also assumed that tenants would be responsible for paying their own electricity and water bills.
Table 6. Project Expenses and Expense Assumptions - (S 106,797) Property Insurance ($ 29,886)Utilities (Sewer, Saltwater, Solid Waste) ($ 58,446) Repairs and Maintenance (5 46,922)Management Fees (5% of net rent) (5 41,040)Payroll and Benefits ($ 54,598) Other Professional Fees ($ 5,443) Subtotal — Annual Expense Income ($ 343,131)Replacement Reserves ($250 per unit) ($ 6,500) Annual Expense Income Net of Property Tax per Unit ($ 9,009) RSG’s estimated per-unit expenses, excluding property taxes, are approximately $9,000. This figure is supported by RSG’s prior experience with both market-rateand affordable housing developments. The proposed project’s operating expense Studio Rental Income (6
One-Bedroom Rental Income (10 L
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Two-Bedroom Rental Income (10 units at $3,500 per month) at $2,500 per month)
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Jocelyn Francis, Assistant City Manager
April 10, 2026
ratio, calculated as total operating expenses divided by effective gross income, isprojected at 42%, which aligns with the average expense ratios observed in Los Angeles multifamily housing projects. According to Costar, between 2022 and 2025, market average operating expense ratios for Los Angeles multifamily housingranged from 39 to 43%.
Source of Funds, Debt Service Coverage, and Development Yield Based on RSG’s experience and recent discussions with developers and real estate investors, market rate multifamily developments typically have a capital stack thatincludes approximately 50% debt and 50% equity. Based on conversations with City staff, the City expects to be both the lender and equity partner for the Project. RSGassumed that the debt would cover half of the total construction costs, with amortization of 20 years, and 6.25% interest rate.
Based on these assumptions, the annual debt service is $468,366 and with annual net operating income of $471,169, the Project has a debt service coverage ratio of
1.01, meaning that the net operating income is about 1% higher than the annual debt service payment. Conventional lenders generally require a minimum debtservice coverage ratio of 1 .20 for stabilized multifamily. This debt service coverage ratio represents a market-based metric for acceptable level of risk, meaning that debt service coverage ratios below 1.20 indicate a higher risk of loan paymentdefault. Because rental income escalates annually and loan payments are static,over time the debt service coverage ratio is projected to improve, with the averagedebt service coverage ratio over the 20-year term at about 1 .30. The City is not aconventional lender, however, and may consider alternative minimum debt servicecoverage ratio thresholds.
RSG considered a second benchmark that multifamily developers utilize to evaluate the feasibility of proposed developments, the development yield. Developers measure yield by dividing the net operating income into the development cost. Yield on cost for new development is similar to the capitalization rate for a stabilized real estate asset, but yields are generally higher than capitalization rates to account for the additional risks of new development. Current market yields for multifamily in Los Angeles County are 6.0%, meaning that developers would be unlikely to moveforward with a development that has a yield lower than 6.0%. RSG calculated the yield for the proposed Project to be 4.4%, meaning that the Project would likely be infeasible for a private developer. The City, however, does not have traditionalinvestors with minimum required returns and may consider an alternative minimum yield threshold.
Financial Feasibility ConsiderationsRSG identified the following considerations that the City may account for during the review of this Project.
. Risks: RSG and the City discussed the assumptions used to evaluate the Jocelyn Francis, Assistant City Manager
April 10, 2026
proposed Project, and we believe the assumptions are reasonable. However, the projected debt service coverage ratio and development yield indicate that the proposed Project is very risky for the City and the City’s General Fund may be exposed to losses if the Project does not perform as expected.Inclusionary Housing: The City has a 20% inclusionary housing requirement, meaning that 5 units would be required to be rented to low- ormoderate-income households at affordable rents. The inclusionary housing ordinance states that the mix of income categories will be determined at the time the project is approved. For the purpose of this analysis, RSG assumedthat the City would pursue an alternative means of compliance, such as land donation, acquisition and rehabilitation of affordable housing, or off-sitecorn p1 ia nce. • SB 34llHousing Successor Funds: To offset development costs of affordable units, the City may utilize SB 341/Housing Successor Funds.
However, deploying SB 341/ Housing Successor Funds carries a different affordability requirement — the maximum income limit is 80% of area median income, 30% of the units must be rented to households earning less than 30% of area median income, and no more than 20% of the units may berented to households earning between 60 and 80% of area median income.
As the Project is already financially strained at market rate rents, these requirements would further impact financial feasibility.
SUMMARY
Each option offers a pathway for the development and management of the proposed Avalon Civic Center Project. While the scenarios differ in terms of structure, operational responsibility, and the application of the Surplus Land Act each scenariooutlined allows the City to maintain ownership of the land. RSG recommends the City evaluates the tradeoffs with each model to determine staffing needs, required timelines and financial implications of each disposition model. With this informationthe City will be well positioned to assess the tradeoffs associated with each modeland determine which best meets the Project goals.
Jocelyn Francis, Assistant City Manager
April 10, 2026
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Revenue Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 YearS Year 9 Year 10 Rental Income 864,000 889,920 916,618 944,116 972,440 1,001,613 1,031,661 1,062,611 1,094489 1,127,324 C) less: Allowance for vacancies (43,200) (44,496) (45,831) (47,206) (48,622) (50,081) (51,583) (53,131) (54,724) (56,366) P Effective Gross Income 820,800 845,424 870,787 896,910 923,818 951,532 980,078 1,009,480 1,039,765 1,070,958 C) _k o D
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Operating Expense j3 Real Estate Taxes 106,797 108,933 111,112 113,334 115,601 117,913 120,271 122,676 125,130 127,632 m N) D property Insurance 29,886 31,679 33,580 35,594 37,730 39,994 42,394 44,937 47,633 50,491 UtiIijes 58,446 61,368 64,436 67,658 71,041 74,593 78,323 82,239 86,351 90,668 cu Repairs and Maintenance 46,922 48,799 50,750 52,781 54,892 57,087 59,371 61,746 64,216 66,784 i Management Fees 41,040 42,271 43,539 44,846 46,191 47,577 49,004 50,474 51,988 53,548 __
Pa’noII and Benefits 54,598 56,236 57,923 59,660 61,450 63,294 65,192 67,148 69,163 71,238 Cl) Protessional Fees 5,443 5,606 5,774 5,948 6,126 6,310 6,499 6,694 6,895 7,102 .!< Cperatng Expense 343,131 354,891 367,114 379,820 393,030 406,767 421,053 435,914 451,375 467,463 m C) eplacernent Reserves 6,500 6,630 6,763 6,898 7,036 7,177 7,320 7,466 7,616 7,768 C)
Net Operating Income 471,169 483,903 496,910 510,192 523,751 537,589 551,705 566,100 580,774 595,726 I Financing Expense 468,366 468,366 468,366 468,366 468,366 468,366 468,366 468,366 468,366 468,366 I— CD
Net Casl Fiow 2,804 15,537 28,544 41,826 55,386 69,223 83,339 97,734 112,408 127,361 0 SCR 1.01 1.03 1.06 1.09 1.12 1.15 1.18 1.21 1.24 1.27 - Op Ex Ratio 42% 42% 42% 42% 43% 43% 43% 43% 43% 44% 0
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Op Ex ne of PT per Unit 9,090 9,460 9,846 10,249 10,670 11,110 11,569 12,048 12,548 13,070 0 z
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CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: _______ ORIGINATING DEP: Administration CITY MANAGER: gLW,k PREPARED BY: Devin Hart, Senior Management Analyst
Robert Greenlaw, City Engineer
SUBJECT: ENGEO On-Call Engineering Services Contract Amendment RECOMMENDED ACTION(S): Authorize the City Manager to execute the First Amendment to the professional services agreement with ENGEO, Inc. for on-call engineering, materialstesting and inspection increasing the contract total for the initial 12 month period — May 1, 2026 to April 30, 2027 - by a total of $300,000 for a total not-to-exceed sum of $400,000.
REPORT SUMMARY: On April 21, 2026, the City Council made the affirmative finding that the City would not gain a competitive advantage by bidding and could contract on-call engineering,materials testing and inspection services more economically or efficiently pursuant to Avalon Municipal Code Section 3-4.111(c). The City Council also authorized the award of a professional services contract for on-call engineering, materials testing and inspection for an amount not-to-exceed $100,000 annually to ENGEO, Inc. for a three-year term.
Since its authorization, the City has reached its annual expenditure limit in its first two taskorders to ENGEO:
1. Geotechnical Investigation, Cabrillo Mole Multimodal Transportation Hub -$73,000.
2. Stockpile Sampling and Continued Consultation, South Beach Restoration Project - $27,000.
However, the City has several complex Capital Improvement Projects in need of geotechnical engineering services as well as materials testing and inspections in the immediate future, including — Green Pleasure Pier Deck Replacement Project, Club Dingy Dock Replacement Project, and Pebbly Beach Road Revetment Project.
Task orders for on-call services are driven by the approved budget. Annually funds cannot be spent unless they are a part of an approved, budgeted, project or account, or receiveadditional City Council approval in accordance with the approved budget and fiscal policies. All of the abovementioned projects have allocations for engineering services budgeted in Fiscal Year 2026-27.
The City has been satisfied with the services provided by ENGEO to date and is confident thatsuch services will continue to be performed satisfactorily in the future. City Staff recommendsthe City Council authorizes the City Manager to execute the First Amendment to the professional services agreement with ENGEO, Inc. for on-call engineering, materials testing and inspection increasing the contract total for the initial 12 month period — May 1, 2026 to April 30, 2027 - by a total of $300,000 for a total not-to-exceed sum of $400,000.
In the remaining term of the contract, the annual allocation limit with return to $100,000, unless otherwise approved by the City Council.
FISCAL IMPACTS: Not-to-exceed $400,000 for all task orders during the initial 12-month contract period for all approved on-call engineer services. Expenditures will be allocated to theappropriate budgeted project.GOAL ALIGNMENT: Fiscal responsibility and infrastructure improvement.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will need to procure the engineering related services for each project and task order which may take more time and cost additional funds or procure services through the existing ESG contract with a contract mark-up.
FOLLOW UP ACTION: Draft and execute contract amendment with ENGEO, Inc.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENT: None.
CITY OF AVALON CITY COUNCIL
MEETING DATE: August 4, 2026 AGENDA ITEM: ________ ORIGINATING DEP: City Manager, City Attorney CITY MANAGER: .1)Ak PREPARED BY: Scott Campbell, City Attorney
SUBJECT: Advance Payment of Measure C Funds to the Catalina Island Medical Center (CIMC)
RECOMMENDED ACTION(S): 1. Approve the Intergovernmental Transfer (IGT) Agreement with the Department of Health Care Services (DHCS), which obligates the City to make an IGTtransfer in the amount of approximately $654,753.60 (including a DHCS Administrative Fee described below) and subject to reconciliation by DHCS for Catalina Island Medical Center’s (CIMC) participation in the Voluntary Rate Range Intergovernmental Transfer Program, which CIMC believes will result in increased funding for CIMC. 2. Approve the transfer of approximately $654,753.60 to DHCS on or before November 20, 2026 in accordance with the IGT Agreement. 3. Approve an advance payment agreement with CIMC, whereby CIMC would allow the City to offset the amount of the IGT transfer of $654,753.60 plus City Attorneys’ fees incurred in connection with the advance payment and certain administrative and lost opportunity fees, through Measure C funds, and, if necessary, any other available andpermissible CIMC revenues over the course of eighteen months.REPORT SUMMARY: The Catalina Island Medical Center (CIMC) has asked the City Council to approve execution of an agreement to provide an advance payment of approximately $654,753.60 (including a State of California Administrative Fee described below) from theCity’s general fund so that CIMC can participate in a Medicaid program to receive a substantial increase in funding.
The Medicaid program (called “Medi-Cal” in California) is jointly funded by the State of California and the federal government for certain residents of the State. The State’s share of the funding is a combination of State funds appropriated to DHCS, public funds transferredfrom other public agencies such as cities or counties (called “Intergovernmental Transfer” or“IGT”), and certain health care-related taxes. These funds together represent the “non-federalshare” of the funding to pay for Medi-Cal program expenses and are used to draw down matching federal funds.
The specific program that CIMC wants to participate is called the Voluntary Rate Range Intergovernmental Transfer Program. It was established in 2011-2012 to allow local public “transferring entities” to contribute their own funds via IGTs to help DHCS to pay capitation rates to Medi-Cal managed care plans at the upper bound of the rate range and to draw down matching federal funds based on those higher rates. The plans must use the “rate range increases” (that is, the difference between the lower bound and the upper bound of the range) to make increased payments to health care providers to increase access to services for their Medi-Cal enrollees.
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Participation in the program is voluntary for public transferring entities and each Medi-Cal managed care plan. For each Medicaid managed care plan year (calendar year), DHCS asks the managed care plans and transferring entities for their interest in participating in the Program—demonstrated by completing a non-binding Letter of Interest (“LOl”) regarding theRating Period CY 2025 (January 1, 2025 — December 31, 2025) Voluntary Rate Range Program. The City and CIMC participated in this program last year and CIMC had paid the City back in full under the terms of that agreement.
At the March 17, 2026 City Council meeting, the City Council authorized the filing of an LOlwith DHCS, subject to DHCS approval. The Council approved applying for the program with a potential IGT transfer of up to $2,726,659 unallocated funds from the City’s General Fund from the City to support CIMC’s participation in the Voluntary Rate Range Program with L.A. Care,.
L.A. Care submitted the application to DHCS and DHCS approved participation in the program but only with a payment of $545,628.00 plus the State Administrative Fee of $109,125.60 for a total Advance Payment of $654,753.60, not the $2,726,659 originally requested. (See Exhibit 1.) DHCS also provided an IGT Agreement to the City for execution on or before August 31, 2026. The actual IGT transfer of funds associated with this IGT Agreement is due on or before November 20, 2026. There is a possibility that the payment amount could be further adjusted, subject to a reconciliation by DHCS over the term of the IGT Agreement. This lower amount of this request reduces the risk to the City.
Any funds CIMC receives through this program must be used by CIMC for services to Medi Cal members and cannot be used to pay back the City. The City would be paid back from theuse of funds from Measure C, the sales tax that was approved by City voters for support ofhospital services, as well as other available and permissible CIMC revenues. Revenue and Taxation Code sections 7286.25-7286.26 authorize Avalon to impose a special sales tax to be used ‘exclusively for the Avalon Municipal Hospital and Clinic.” This authority is broad and seems to contemplate that the Hospital could use Measure C funds to repay debt incurred forthe benefit of the Avalon Municipal Hospital and Clinic, regardless of the lender. The City was unable to locate the ballot documents for the sales tax to determine if any limitations were imposed by the documents, which is unlikely giving the information from the election we were able to find.
The agreement with CIMC for the advance by the City provides that the funds would be paid back over the course of approximately 18 months, during which time the City would offsetpayments to CIMC under Measure C until the advance payment was repaid. However, the City anticipates that based upon current Measure C funds already retained by the City in addition to anticipated future Measure C funds, the repayment of the advance is likely to occur prior to December 31, 2026. If the Measure C funds are insufficient to fully repay the advance payment amount in 18 months, then the advance payment would be repaid through any available and permissible CIMC revenues. The CIMC advance payment agreement, attached as Exhibit 3,includes the following terms:
1. Advance Amount: Not to exceed $654,753.60 [plus or minus any amounts plus or minus any amounts due after reconciliation by the California Department of Health Care Services (:DHCS”) of the Estimated L.A. Care Member Months for Calendar Year 2025 attributable to the Medical Center under the Intergovernmental Transfer Agreement between the City of Avalon and DHCS]
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2. Source of Repayment: Measure C Funds and other available and permissible CIMC revenues.
3. Term: Eighteen months from date of disbursement of the advance amount.
4. Administrative Fees: City Administrative Fee equal to (i) 4.5% of the total amount advanced on behalf of CIMC and (ii) 2.25% of the outstanding amount owing to the City as of the first anniversary of the date of disbursement of the advance amount, to account for the lost opportunity costs of interest and expense associated with administration of the advancepayment. In addition, CIMC will pay for the City’s attorneys’ fees incurred in connection with the advance payment.
5. Repayment: 100% of Advance Amount, commencing as of the end of the first quarter after the City’s funding of the advance or April 1, 2027, with the balance due from operating funds if not repaid in full by end of term.6. Covenants to include prohibition on sale of hospital or change of ownership without Cityconsent, and requirement for monthly meetings between City and hospital management regarding the status of any future plans for the hospital (including any proposed sale, affiliation, or change of ownership of the hospital.7. Financial reporting requirements, including audited financial statements, and monthly orquarterly financial statements, at the discretion of the City.8. Customary representations and warranties of the hospital.
FISCAL IMPACTS. A reduction in general funds with repayment over no more than eighteen months from date of disbursement of the Advance Payment although full repayment is anticipated on or before December 31, 2026.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Hospital will not receive the fee increases from L.A. Care Plan and may need to seek funds from other sources.FOLLOW UP ACTION: Execution of IGT Agreement with DHCS and advance payment agreement with CIMC on or before August 31, 2026, and transfer of IGT amount to DHCS by November 20, 2026.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: Letter from DHCS, Intergovernmental Transfer Agreement, Advance Payment Agreement.
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Exhibit 1
Letter from DHCS transmitting the Intergovernmental Transfer Agreement with DHCS (flO flflflflfl\ [OO7I 2
Devin Elise Hart
From: Beeck, Vivian@DHCS <[email protected]>
Sent: Friday, July 17, 2026 9:10 AM
To: David Maistros; Matthew BakerCc: Beeck, Vivian@DHCS; Gale, Scott©DHCS; Hoskins, Jesse©DHCS Subject: CY 2025 VRRP IGT Agreement for Signature due 8/31/2026 -City of Avalon Attachments: IGT-25-0007 City of Avalon.docx
Good morning City of Avalon,
Welfare and Institutions Code sections 14164 and 14301.4 authorize the Department of Health Care Services (DHCS) to implement a Voluntary Rate Range Program relating to the Medi-Cal managed carecapitation rate ranges. The funding amounts under the Voluntary Rate Range Program are the nonfederalshare of the difference between the Medi-Cal managed care plan (MCP) contracted capitation rates and the top of the MCPs’ actuarially sound rate range, as determined by DHCS. The intergovernmentaltransfer (IGT) of funds by the governmentalfunding entities (counties, cities, special purpose districts, state university teaching hospitals, or any other political subdivision of the state) to DHCS for this program shall be used to fund the nonfederal share of Medi-Cal managed care actuarially sound capitation rates described in section 14301 .4(b)(4) of the Welfare and Institutions Code. These fundsshall be paid, together with the related federal financial participation, by DHCS to MCPs as part of capitation rates for the rating period of Calendar Year (CY) 2025.
DHCS received your letter(s) of interest for the Rating Period CY 2025 (January 1, 2025— December31, 2025) Voluntary Rate Range Program. Please review the attached “lntergovernmentalAgreement Regarding Transfer of Public Funds,” which includes contribution amounts by rate category, total IGT amounts, any amounts exempt from the 20% assessment tee pursuant to Welfare and Institutions Codesections 14301.4(d) and 14301 .5(b)(4), and the listed contacts for your funding entity; update the contact information now if needed. Each governmental funding entity choosing to participate must complete theFinal Agreement, ensuring Section 5 (Notices) is fully reviewed and updated, and that the Signature Section includes both the governmentalfunding entity’s name and the Funding Entity Signer’s name and title. All other sections have been completed by DHCS.
DHCS will accept and would prefer DocuSign digital signature(s) on the final agreements. Please obtain the necessary signature(s) and submit via e-mailto Vivian.Beeckdhcs.ca.gov, and cc Scott. Gale@d hQcgQv..
If you need assistance initiating the DocuSign - digitally signed document, the process takes us about 10 minutes to create and send to you. We wiLL need their Name, TitLe, and EmaiL address. Please contact either of us: Scott Gale at Scott.Galedhcs.ca.gov, or Vivian Beeck at [email protected]; and one of us wilt assist you.
Please refrain from including/requesting any DHCS signature while obtaining your organization’s signatures. We will obtain our authorized DHCS signature separately and send you the contract executed afterwards with all final signatures.
If your organization requires the use of a “wet signature,” please obtain the necessary originaL signature(s) on the agreement, and email the signed agreements [email protected], and Scott.GaLedhcs.ca.gov for execution on or before Monday, August 31, 2026.
Please do not submit any agreements/contracts between the MCPs and providers related to the Rating Period CY 2025 Voluntary Rate Range Program.
Invoicing for CY 2025 lOT amounts wiLL occur in October 2026, with an lOT coLLection deadLine of November 20, 2026.
If you have any questions, please feel free to contact us by e-mail at Vivian.Beeckdhcs.ca.gov, and Scott. Gatedhcs.ca.gov.
Vivian Beeck Staff Services Manager I (Specialist)
California Department of Health Care ServicesCapitated Rates Development Division Email: [email protected]: (916) 345-8271
IHCS
“Confidentiality Notice: This communication, including any attachments, is for the sole use of the intended recipient(s)and may contain confidential and/or legally privileged information. Any unauthorized review, use, disclosure, interception, and/or distribution of this message and/or any attachments, is strictly prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient(s), please immediately contact the sender and kindly destroy all copies of the original communication as well as any attachments. Thank you in advance for yourcooperation.” I CONFIDENTIALITY NOTICE: This e-mail and any attachments may contain information which is confidential, sensitive, privileged, proprietary or otherwise protected by law. The information is solely intended for the named recipients, other authorizedindividuals, or a person responsible for delivering it to the authorized recipients. If you are not an authorized recipient of thismessage, you are not permitted to read, print, retain, copy or disseminate this message or any part of it. If you have received this e mail in error, please notify the sender immediately by return e-mail and delete it from your e-mail inbox, including your deleted items folder.
2 Exhibit 2
Intergovernmental Transfer Agreement with DHCS
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CONTRACT # IGT-25-0007
INTERGOVERNMENTAL AGREEMENT REGARDING
TRANSFER OF PUBLIC FUNDS
This Agreement is entered into between the CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (“DHCS”) and CITY OF AVALON (“GOVERNMENTALFUNDING ENTITY”) with respect to the matters set forth below.
The parties agree as follows:
AGREEMENT
I. Transfer of Public Funds
.1 The GOVERNMENTAL FUNDING ENTITY agrees to make a transfer of funds to DHCS pursuant to sections 14164 and 14301.4 of the Welfare and Institutions Code.
The amount transferred shall be based on the sum of the applicable rate category per member permonth (“PMPM”) contribution increments multiplied by member months, as reflected in Exhibit I. The GOVERNMENTAL FUNDING ENTITY agrees to initially transfer amounts that are calculated using the Estimated Member Months in Exhibit 1, which will be reconciled to actualenrollment for the service period ofJanuary 1, 2025 through December 31, 2025 in accordancewith Sub-Section 1 .3 of this Agreement. The funds transferred shall be used as described in Sub Section 2.2 of this Agreement. The funds shall be transferred in accordance with the terms and conditions, including schedule and amount, established by DHCS. 1 .2 The GOVERNMENTAL FUNDING ENTITY shall certify that the funds transferred quaIif’ for Federal Financial Participation pursuant to 42 C.F.R. part 433, subpart B, and are not derived from impermissible sources such as recycled Medicaid payments, Federal money excluded from use as State match, impermissible taxes, and non-bona fide provider Template Version - 1/2026
CONTRACT # IGT-25-0007
related donations. Impermissible sources do not include patient care or other revenue received from programs such as Medicare or Medicaid to the extent that the program revenue is not obligated to the State as the source of funding.
1.3 DHCS shall reconcile the “Estimated Member Months,” in Exhibit 1, to actual enrollment in HEALTH PLAN(S) for the service period of January 1,2025 through December 31, 2025 using actual enrollment figures taken from DHCS records. Enrollment reconciliation will occur on an ongoing basis as updated enrollment figures become available.
Actual enrollment figures will be considered final two years after December 3 1, 2025. If reconciliation results in an increase to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, the GOVERNMENTAL FUNDING ENTITY agrees to transfer any additional funds necessary to cover the difference. If reconciliation results in a decrease to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, DHCS agrees to return the unexpended funds to the GOVERNMENTAL FUNDING ENTITY. If DHCS and the GOVERNMENTAL FUNDING ENTITY mutually agree, amounts due to or owed by the GOVERNMENTAL FUNDING ENTITY may be offset against future transfers.
2. Acceptance and Use of Transferred Funds
2.1 DHCS shall exercise its authority under section 14164 of the Welfare and Institutions Code to accept funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to this Agreement as Intergovernmental Transfer (IGT5), to use for the purpose set forth in Sub-Section 2.2.
2.2 The funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to Section 1 and Exhibit I of this Agreement shall be used to fund the non-federal share 2 Template Version - 1/2026
CONTRACT # lGT-250007
of Medi-Cal Managed Care actuarially sound capitation rates described in section 1430 l.4(b)(4) of the Welfare and Institutions Code as reflected in the contribution PMPM and rate categoriesreflected in Exhibit 1. The funds transferred shall be paid, together with the related Federal Financial Participation, by DHCS to HEALTH PLAN(S) as part of HEALTH PLAN(S)’ capitation rates for the service period ofJanuary 1, 2025 through December 31, 2025, inaccordance with section 14301.4 ofthe Welfare and Institutions Code.
2.3 DHCS shall seek Federal Financial Participation for the capitation rates specified in Sub-Section 2.2 to the full extent permitted by federal law.
2.4 The parties acknowledge that DHCS will obtain any necessary approvals from the Centers for Medicare and Medicaid Services.
2.5 DHCS shall not direct HEALTH PLAN(S)’ expenditure of the payments received pursuant to Sub-Section 2.2.
3. Assessment Fee
3.1 DHCS shall exercise its authority under section 14301.4 of the Welfare and Institutions Code to assess a 20 percent fee related to the amounts transferred pursuant to Section 1 of this Agreement, except as provided in Sub-Section 3.2. GOVERNMENTAL FUNDING ENTITY agrees to pay the full amount of that assessment in addition to the funds transferred pursuant to Section 1 of this Agreement.
3.2 The 20-percent assessment fee shall not be applied to any portion of funds transferred pursuant to Section I that are exempt in accordance with sections 1430 1 .4(d) or 14301.5(b)(4) of the Welfare and Institutions Code. DI-ICS shall have sole discretion to deterinine the amount of the funds transferred pursuant to Section 1 that will not be subject to a 3 Template Version - 1/2026
CONTRACT # IGT-25-0007
20 percent fee. DHCS has determined that $0.00 of the transfer amounts will not be assessed a 20 percent fee, subject to Sub-Section 3.3.
3.3 The 20-percent assessment fee pursuant to this Agreement is nonrefundable and shall be wired to DHCS simultaneously with the transfer amounts made under Section 1 ofthis Agreement. If at the time of the reconciliation performed pursuant to Sub Section 1.3 of this Agreement, there is a change in the amount transferred that is subject to the 20-percent assessment in accordance with Sub-Section 3.1, then a proportional adjustment to theassessment fee will be made.
4. Amendments
4.1 No amendment or modification to this Agreement shall be binding on either party unless made in writing and executed by both parties.
4.2 The parties shall negotiate in good faith to amend this Agreement as necessary and appropriate to implement the requirements set forth in Section 2 of thisAgreement.
5. Notices. Any and all notices required, permitted, or desired to be given hereunder by one party to the other shall either be sent via secure email or submitted in writing to the otherparty personally or by United States First Class, Certified or Registered mail with postageprepaid, addressed to the other party at the address as set forth below:
To the GOVERNMENTAL FUNDING ENTITY:David Maistros, City Manager 410 Avalon Canyon Road
P0 Box 707Avalon, CA 90704(310) 510-0220 x122
dmaistros(cityofavalon.gov
4 Template Version - 1/2026
CONTRACT # IGT-25-0007
With copies to:
Matthew Baker, Finance Director
410 Avalon Canyon Road
P0 Box 707
Avalon, CA 90704
(310) 510-0220 x170
mbakercityofavalon.gov
To DHCS:
Vivian Beeck
California Department of Health Care ServicesCapitated Rates Development Division 1501 Capitol Ave., MS 4413
Sacramento, CA 95814Vivian.Beeckdhcs.ca.gov
6. Other Provisions
6. 1 This Agreement contains the entire Agreement between the parties with respect to the Medi-Cal payments described in Sub-Section 2.2 of this Agreement that are fundedby the GOVERNMENTAL FUNDING ENTITY, and supersedes any previous or contemporaneous oral or written proposals, statements, discussions, negotiations or other agreements between the GOVERNMENTAL FUNDING ENTITY and DHCS relating to the subject matter of this Agreement. This Agreement is not, however, intended to be the sole agreement between the parties on matters relating to the funding and administration of the MediCal program. This Agreement shall not modify the terms of any other agreement, existing or entered into in the future, between the parties.
6.2 The non-enforcement or other waiver of any provision of this Agreement shall not be construed as a continuing waiver or as a waiver of any other provision of thisAgreement. 5 Template Version - 1/2026
CONTRACT # IGT-25-0007
6.3 Sections 2 and 3 of this Agreement shal! survive the expiration or termination of this Agreement.
6.4 Nothing in this Agreement is intended to confer any rights or remedies on any third party, including, without limitation, any provider(s) or groups of providers, or any right to medical services for any individual(s) or groups of individuals. Accordingly, there shall be nothird party beneficiary of this Agreement.
6.5 Time is of the essence in this Agreement.6.6 Each party hereby represents that the person(s) executing this Agreement on its behalf is duly authorized to do so. Any required signature(s) on any documents must be in compliance with California Government Code section 16.5 and any other applicable state orfederal regulations.
7. State Authority. Except as expressly provided herein, nothing in this Agreement shall be construed to limit, restrict, or modify the DHCS’ powers, authorities, and duties under Federal and State law and regulations.
8. Approval. This Agreement is of no force and effect until signed by the parties.
9. Term. This Agreement shall be effective as ofJanuary 1, 2025 and shall expire as ofJune 30, 2028 unless terminated earlier by DHCS through written notification or by mutualagreement of the parties. 6 Template Version - 1/2026
CONTRACT # IGT-25-0007
SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of the last signature below.CITY OF AVALON:
By:
________________________________
Date:
________________________
THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES:
By:
________________________________
Date:
________________________
Sean Barber, Division Chief, Capitated Rates Development Division 7 Template Version - 1/2026
CONTRACT # IGT-25-0007
Health Plan Funding Entity Rating Region Service Period Participation % LA Care Health Plan City of Avalon Los Angeles 1/2025 - 12/2025 0.30% Estimated
Contribution Estimated Member
Category of Aid SISIUIS Contribution (Non PMPM Months*
Federal_Share)
Child 515 $ 0.02 7,282,003 $ 145,640Child UIS $ - 629,022 $ - Adult 515 $ 0.01 2,311,598 $ 23,116 Adult UIS $ 0.01 1,935,326 $ 19,353Adult Expansion 515 $ 0.01 8,164,759 $ 81,648Adult Expansion UlS $ - 2,614,108 $ - SPD 515 $ 0.10 1,294,921 $ 129,492SPD UIS $ 0.02 406,982 $ 8,140SPD Dual 515 $ 0.04 3,307,981 $ 132,319SPD Dual UlS $ 0.01 41,664 $ 417 LTC 515 $ 0.10 9,627 $ 963LTC Uls $ 0.03 5,875 $ 176LTC Dual SIS $ 0.05 87,117 $ 4,356LTC Dual UIS $ 0.01 842 $ 8Est. FE Total 28,091,825 $ 545,628 * Note that Estimated Member Months are subject to variation, and the actual total Contribution (Non-Federal Share) may differ from the amount listed here. * FMAP is a weighted blend of multiple FMAPs.
8 Template Version - 1/2026
Exhibit I
Exhibit 3
Advance Payment Agreement with CIMC
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ADVANCE PAYMENT AND SECURITY AGREEMENT
This Advance Payment and Security Agreement (“Agreement”) is made and entered into this _____ day of August, 2026 (“Effective Date”), by and between the CITY OF AVALON, a municipal corporation (“City”), and AVALON MEDICAL DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation, dba Catalina Island Health (“Medical Center”).
City and Medical Center are sometimes individually referred to herein as a “Party” and, together, as the “Parties.”
RECITALS
A. WHEREAS, Medical Center operates an acute care hospital and medical clinic located at 500 Falls Canyon Rd., Avalon, California (the “Medical Facility”); B. WHEREAS, Medical Center has requested City to advance the sum of Six HLlndred Fifty-Four Thousand Seven Hundred Fifty-Three Dollars and Sixty Cents ($654,753.60) (the “Advance Payment”) to allow the Medical Center to participate in a Medicaid (Medi-Cal) programwhich is expected to provide the Medical Center a substantial increase in funding; C. WHEREAS, specifically, the Medical Center desires to participate in the Voluntary Rate Range Intergovermental Transfer Program (the “Program”), allowing local public transferring entities to contribute funds via intergovernmental transfers (“IGT5”) to help the California Department of Health Care Services (“DHCS”) make increased payments to health care providers through managed care capitation rate increases to health plans; and D. WHEREAS, DHCS has approved of the participation by Medical Center in the Program, subject to the City’s execution of an IGT agreement with DHCS (the “IGT Agreement”) and the City’s transfer of funds to the State of California in the amount ofthe Advance Payment.
NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows:
AGREEMENT
Section 1. Definitions. As used in this Agreement, the following terms will have the meaning set forth herein below, except where, from the context, it is clear that another meaning is intended. Many words and terms are capitalized throughout this Agreement to indicate that they are defined as set forth in this Section.
“Administrative Fee” means the fees to be paid to the City by the Medical Center pursuant to Section 4 hereof.
“Advance Payment” means a one-time transfer in the amount of Six Hundred Fifty-Four Thousand Seven Hundred Fifty-Three Dollars and Sixty Cents ($654,753.60), which amountconsists of $545,628.00 as the IGT amount calculated by DHCS and $109,125.60 as the State Administrative Fee. made by City to the State ofCalifornia pursuant to Section 2 ofthis Agreementas a payment made for the benefit of Medical Center and as an advance on funds to be received by Medical Center pursuant to Measure C and from other permissible sources of repayment.. “Collateral” is defined in Section 6 hereof.
‘Disbursernent Date” means the date the City delivers the Advance Payment to the State of California pursuant to the IGT Agreement.
“Event of Default” is defined in Section 7 hereof.“Governmental Authority” means any nation or government, any state or other political subdivision thereof, and any agency, department or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. “IGT Agreement” is defined in Recital D. “Insolvency Proceeding’ means the insolvency of a Person, the appointment of a receiver, trustee, custodian, sequestrator, conservator or similarofficial of any part of a Person’s property, an assignment by a Person for the benefit of creditors,or the voluntary or involuntary commencement of any proceeding under the United States Bankruptcy Code or any other bankruptcy or insolvency law, by or against a Person, including the winding-up or liquidation of a Person.
“Lease” shall mean that certain Lease and Operating Agreement dated September 16, 2003, between the City and Medical Center, as amended from time to time. “Measure C” means the sales tax initiative approved on April II, 2000, providing for a special one-half percent sales tax to be used exclusively for the Avalon Municipal Hospital andClinic. “Measure C Funds” means the funds received by the City and/or the Medical Center pursuant to Measure C.
“Obligations” means all obligations of Medical Center to City arising pursuant to this Agreement, including without limitation, the repayment of the Advance Payment (including the portion relating to the State Administrative Fee), the payment of the Administrative Fee, and the payment of City’s attorneys’ fees.
“Person” means an individual, a corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or other businessentity, or a government or any agency or political subdivision thereof. “State Administrative Fee” means the fee due to the State of California in an amount equal to 20% of the amount of the IGT amount (i.e., $109,125.60) pursuant to the terms of, or otherwise in connection with, the IGT Agreement and/or the Medical Center’s participation in the Program.
Section 2. Advance Payment. Provided no Event of Default has occurred and is continuing, and subject to (i) the City’s and the State of California’s execution of the IGTAgreement on or before August 3 1, 2026, and (ii) City’s receipt of evidence satisfactory to City that (a) the Medical Center continues to be eligible for participation in the Program, City shall transfer to the State of California the Advance Payment in accordance with the terms of the IGT Agreement. Medical Center acknowledges and agrees that Medical Center has requested the City to deliver the Advance Payment in accordance with the IGT Agreement, and that the delivery of 2 the Advance Payment is for the benefit of the Medical Center. Medical Center further acknowledges that the City will include as part of the Advance Payment, unless waived by the State of California, the State Administrative Fee. In the event the State Administrative Fee is not required to be paid to the State of California, the Advance Payment amount will be reduced by the amount initially calculated as the amount of the State Administrative Fee.
3. Reconciliation. To the extent that the State or L.A. Care Health Plan reconciles the amount of the IGT Payment as permitted by the IGT Agreement, the parties agrees to makeadditional payments to the State or accept refunds of payments made, as required by the IGTAgreement and to reconcile payments between them in accordance with the IGT Agreement and this Agreement.
Section 3. Repayment of Obligations.
(a) Medical Center agrees that the Obligations shall be repaid to the City from Measure C Funds or from any other source of available and permissible funds, as established by the Centers for Medicare and Medicaid Services (“CMS”) and DHCS, of the Medical Center in accordance with the repayment schedule set forth on Exhibit A. Repayment of Measure C Fundswill be by way of offset against quarterly payments due to Medical Center from City. (b) Medical Center may, at any time, make additional payments to the City to repay the Obligations from Measure C Funds or from any other source of available and permissible funds, as established by the CMS and DHCS, ofthe Medical Center. (c) The unpaid balance ofthe Obligations shall be paid in full on the last day of the eighteenth full month following the Disbursement Date from any source of available and permissible funds, as established by the CMS and DHCS, of the Medical Center.
Section 4. Administrative Fee Payment of City’s Attorneys’ Fees. To reimburse City for additional costs relating to administering the Advance Payment, including the loss of earningsrelating to City’s advancing of the Advance Payment pursuant to the IGT Agreement, City shall assess a fee equal to (i) four and one-half percent (4.5%) ofthe Advance Payment disbursed on the Disbursement Date and (ii) two and one-quarter percent (2.25%) of the amount of the Obligations outstanding as of the first anniversary of the Disbursement Date. The Administrative Fee shall be paid in the same manner as the repayment of the Obligations as set forth in Section 3. Except for the Administrative Fee, and subject to Section II, the City shall at no time charge, nor shall the Medical Center be obligated to pay, interest on or any other charge relating to the use of theAdvance Payment. Medical Center shall pay or reimburse Best, Best & Krieger directly for the City’s attorneys’ fees incurred in connection with the preparation and negotiation of this Agreement and the transactions contemplated hereby within sixty (60) days of receipt of an invoicefor such fees. In the event Medical Center fails to pay the City’s attorneys’ fees as provided herein,Medical Center hereby authorizes City to apply any Measure C funds now or hereafter in the possession of the City to the payment of such attorneys’ fees.
Section 5. Application of Payments. All repayments of the Obligations shall be made to City in U.S. dollars. All payments received by City will be applied first to payment of the Administrative Fee. second to the repayment of the Advance Payment, and third, to the payment -3
of any other amounts due under this Agreement. After the occurrence and during the continuance of an of an Event of Default, the City may apply any payments to the Obligations owing under this Agreement in any order determined by City.
Section 6. Security Interest. To the extent permitted by law, Medical Center hereby grants and assigns to City a security interest in all of Medical Center’s right, title, and interest in all accounts and receivables relating to Measure C Funds, including any rights to the payment of such Measure C Funds, and all proceeds thereof (the “Collateral”), to secure prompt repayment ofany and all Obligations in accordance with the terms and conditions of this Agreement and tosecure prompt performance by Medical Center of each of its covenants and duties under this Agreement. Medical Center authorizes City to file UCC-I financing statements as may benecessary to perfect the security interest contemplated by this Agreement, and any continuation statement or amendment with respect thereto, in the appropriate filing office without the signature of Medical Center where permitted by applicable law.
Section 7. Representations and Warranties. As an inducement to City to execute this Agreement and to disburse the Advance Payment, Medical Center represents and warrants to City that the following statements set forth in this Section are true, correct and complete in all material respects as of the date hereof and will be true, correct and complete in all material respects until the Advance Payment is paid in full:
(a) Medical Center is duly incorporated, formed or organized and validly existing under the laws of the state of its incorporation, formation or organization, and is qualified to transact business in the State of California and in each jurisdiction where it is required to conduct its operations, and is in good standing in the State of California; (b) The execution, delivery and performance of this Agreement by Medical Center are within the Medical Center’s powers and have been duly authorized by all necessary action byMedical Center; (c) This Agreement has been duly executed by Medical Center, and is a legally valid and binding obligation of Medical Center, enforceable against Medical Center in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity; (d) The execution, delivery and performance ofthis Agreement by Medical Center will not violate (i) Medical Center’s articles of incorporation or bylaws; (ii) any legal requirement affecting Medical Center or any of its properties; or (iii) any agreement to which Medical Center is bound or to which it is a party;
(e) To Medical Center’s knowledge, Medical Center is in material compliance with all laws, regulations, rulings, orders, injunctions, decrees, conditions or other requirements applicable to or imposed upon Medical Center by any law or by any Governmental Authority. Borrower has filed all required tax returns and reports (or filed appropriate extensions therefore) that are now required to be filed by it in connection with any federal, state and local tax, duty or charge levied, assessed or imposed upon Medical Center or its assets, including unemployment, social security, and real estate taxes. Medical Center has paid all taxes which are now due and payable. No taxingauthority has asserted or assessed any additional tax liabilities against Medical Center which are 4 outstanding on this date, and Medical Center has not filed for any extension oftime for the payment of any tax or the filing of any tax return or report; and (f No Insolvency Proceeding of any character, including, without limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary orinvoluntary, affecting the Medical Center or any of its assets or properties, is pending or, to the knowledge of the Medical Center, threatened. The Medical Center has not taken any action in contemplation of, or that would constitute the basis for, the institution of any such InsolvencyProceedings.
Section 8. Covenants of Medical Center.
(a) Restriction on Transfers. Medical Center shall not sell, assign or otherwise transfer any interest in the Lease or any portion of the Medical Facility except in strict accordance with the terms of the Lease.
(b) No Additional Liens on Collateral. Medical Center shall not grant, create, permit, assume or suffer to exist any mortgage, pledge, lien, encumbrance, charge, or security interest in or upon the Collateral or assets of the Medical Center. (c) Financial Reporting. The Medical Center shall maintain a system of accounting in accordance with U.S. generally accepted accounting principles (GAAP) consistently applied andshall provide to the City:
(I) with respect to each fiscal year of the Medical Center, commencing with fiscal year ending June 30, 2026, a copy of audited financial statements of Medical Center for thatperiod, which financial statements have been audited by an independent certified publicaccountant, to be delivered to the City within 30 days of the Board of Directors of the MedicalCenter approval thereof, including a balance sheet, statement of operations, statement of cash flowsand accompanying auditors opinion report and footnotes; (II) at the election ofthe City (which election may be changed from time to time upon written notice from the City to the Medical Center), copies of Medical Center’s monthly or quarterly financial statements (as elected by the City), including balance sheet and income statements, by no later than 30 days after the end of each applicable period; and (III) notice within thirty (30) business days of any material adverse change in any of the following:
A. operating income;
B. balance sheet position;
C. key service line closure;
D. legal or regulatory non-compliance; orE. senior leadership departure (e.g., CEO or CFO). (IV) promptly upon City’s request, all other books, records, statements, lists of property and accounts, budgets, forecasts, reports, records or other information pertaining to the condition or operations of the Medical Center as requested by City. 5 (d) Medical Center shall cause senior management of the Medical Center to meet with the city manager of the City (or his/her designee) on a monthly basis to discuss and update the City regarding the status of any future plans for the Medical Facility, including, but not limited to, any proposed sale, affiliation or change of ownership ofthe Medical Center. (e) Medical Center shall comply or cause compliance in all material respects with all laws. regulations, rulings, orders. injunctions, decrees, conditions or other requirements applicable to or imposed upon Medical Center by any law or by any Governmental Authority, court or agency governing the use and operation of its Medical Facility. Evidence of such compliance shall be submitted to City on request.
(f) The Medical Center shall (i) maintain all licenses, permits, accreditations, and certifications required by federal and California law to operate an acute care hospital and associatedclinics; (ii) operate in accordance with all applicable CMS Conditions of Participation, California Department of Public Health (CDPH) licensing requirements, and DHCS regulations; and (iii) comply with all programmatic requirements for continued participation in the Voluntary Rate Range IGT Program, including accurate encounter reporting, attestation submissions, and costreporting. (g) Medical Center shall not (i) change its corporate structure, (ii) merge or consolidate with any entity, or undergo any statutory division, or (iii) amend or change any organizational orgoverning document binding upon it on the Effective Date.
Section 9. Event of Default. The occurrence of any of the following shall be deemed to be a default hereunder (each an “Event of Default”):
(a) failure by Medical Center to pay any monetary amount when due under this Agreement;
(b) any representation or warranty in this Agreement is materially incorrect or misleading when made or provided;
(c) any other default or breach of any of the terms, provisions, and obligations of the Medical Center pursuant to this Agreement, and such default or breach is not cured by Medical Center within thirty (30) days from the receipt of written notice thereof from City; or (d) the Medical Center ceases to he an organization described in Section 501(c)(3) of the Internal Revenue Code;
(e) an Insolvency Proceeding is initiated by Medical Center; or any Insolvency Proceeding initiated against Medical Center by another Person is not discharged within 60 days after filing;
(0 any default in the performance of any material term or condition of the Lease (beyond any applicable notice, grace or cure period set forth therein); and (g) any default in the payment or performance of any material term or condition of any credit agreement. note, security agreement. mortgage, deed of trust, deed to secure debt, or other 6 agreement or instrument evidencing or securing any other indebtedness, liabilities or obligations of Medical Center (beyond any applicable notice, grace or cure period set forth therein).
Section 10. Remedies. Notwithstanding any provision to the contrary herein, during a continuance of any Event of Default under this Agreement, City shall, at its option, have the following remedies: (a) declare the outstanding balance ofthe Advance Payment to be immediately due and payable without presentment, demand, protest or notice of any kind, (b) apply any MeasureC Funds now or hereafter in the possession of the City to the payment of the Obligations, and (c)exercise all rights and remedies available to it under this Agreement or under applicable law; except that upon an actual or deemed entry of an order for relief with respect to Medical Center in any Insolvency Proceeding, all Obligations shall automatically become due and payable, without presentment, demand, protest or any notice of any kind, all of which are expressly waived by Medical Center.
Section II. Interest on Past DLIe Obligations. Except as otherwise expressly provided in this Agreement, any amount due from Medical Center to City hereunder which is not paid when due shall bear interest at the rate of 10% per annum from the date such payment is dLLe until thedate paid.
Section 12. Indemnification. The Medical Center agrees to indemnify, defend and hold the City, and its council members, officers, employees and agents (collectively the “Indemnified Persons”) harmless from any and against any loss, liability, obligation, damage, penalty,judgment, claim, deficiency, expense, interest, penalties, attorneys’ fees (including the fees and expenses ofattorneys engaged by the Indemnified Person at the Indemnified Person’s reasonable discretion) and amounts paid in settlement (collectively, “Claims”) to which any Indemnified Person may become subject arising out of or relating to this Agreement, including, but not limited to, the City’smaking of the Advance Payment or the application of Measure C Funds to the repayment of the Advance Payment, except to the limited extent that the Claims are proximately caused by the Indemnified Person’s gross negligence or willful misconduct. The indemnification provided forin this section shall survive the termination of this Agreement and shall not be affected by the presence, absence or amount of or the payment or nonpayment of any Claim under any insurance.
Section 13. Termination. Upon the payment in full of all of the Obligations of Client under this Agreement, this Agreement shall terminate, except as to any provisions or obligations which expressly stated as surviving the termination of this Agreement.
Section 14. Assignment. Medical Center shall not assign or transfer this Agreement, directly or indirectly, by operation of law or otherwise, without the prior written consent of City,which consent may be withheld or granted in City’s sole and absolute discretion. Any attempt to do so without such written consent of City shall be null and void.
Section 15. Notices. All notices required or permitted to be given by this Agreement shall be in writing and may be delivered personally, by certified or registered U.S. Postal Service mail,return receipt requested, postage prepaid, or by U.S. Postal Service Express mail, Federal Express orother overnight courier that guarantees next day delivery, and shall be deemed sufficiently given ifserved in the manner specified in this Section. Notices shall be delivered or mailed to the parties at the addresses set forth beneath their respective names on the signature page of this Agreement. Each party may change its address by giving notice as provided in this Section. Notices given by certified 7 or registered mail, return receipt requested, shall be deemed given on the date of deliveiy shown on the receipt card, or if no delivery date is shown, the postmark date. Notices delivered by U.S. Postal Service Express mail, Federal Express or overnight courier that guarantees next day delivety shall be deemed given twenty-four (24) hours after delivery of the notice to the U.S. Postal Service,Federal Express or overnight courier.
Section 1 6. Miscellaneous.
A. Waiver. A waiver by either Party of any breach, or of any term, covenant, or condition contained herein, shall not be deemed to be a waiver of any subsequent breach of thesame or any other term, covenant, or condition contained herein, whether of the same or a different character.
B. Entire Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the Parties with respect to its subject matter, and all preliminary negotiations and agreements of whatsoever kind or nature relating to the same are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein.
C. Interpretation. The terms ofthis Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of the Agreement or any other rule of improvements which might otherwise apply.
D. Amendment. This Agreement may be modified or amended only by a written document executed by both Medical Center and City.
E. Severability. If any term or provision of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
F. Governing Law. The validity, construction, interpretation and enforcement ofthis Agreement will be governed by the laws of the State of California.
G. Prevailing Parties. If either Party becomes involved in arbitration or litigation arising from this agreement or the performance or interpretation of it, the arbitrator, court or tribunal in such arbitration or litigation oi. in a separate suit shall award reasonable costs and expenses of arbitration and litigation, including expert witness fees and attorney fees, to the prevailing Party or Parties.
[Signatures on Following Page]
8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of its Effective Date.
Medical Center: CITY:
AVALON MEDICAL DEVELOPMENT CITY OF AVALON
CORPORATION
By:_____________________________ By:_____________________________Signature Signature Printed Name Printed NameDate Date
Address for Notices: Address for Notices:Avalon Medical Development Corporation City of Avalon 100 Falls Canyon Rd 410 Avalon Canyon Road
Avalon, CA 90704 Avalon, CA 90704Attn:___________________ Attn: ________________ 9
EXHIBIT A
REPAYMENT SCHEDULE
Payment Amount
January 4. 2027 Amount equal to Measure C funds received or payable to Medical Center then in possession ofthe City
April 1, 2027 Amount equal to Measure C funds received or payable to Medical Center with respect to the first calendar quarter of 2027
July 1, 2027 Amount equal to Measure C funds received or payable to Medical Center with respect to the second calendar quarter of 2027
October 1, 2027 Amount equal to Measure C funds received or payable to Medical Center with respect to the third calendar quarter of 2027
Last Day of the Eighteenth All remaining and outstanding amounts owing to City Full Month Following the pursuant to this AgreementDisbursement Date 10