ARTICLE 7. ADVERTISING DISTRIBUTION
Sec. 5-1.701. Handbills.
(a) No person shall distribute, scatter, hand out or circulate handbills, circulars, tracks or leaflets which do not have printed on the cover, front or back, the following:
(1) The name and address of the person who causes the handbill, circular, track or leaflet to be printed, written, compiled and manufactured;
(2) The name and address of the person who causes the handbill, circular, track or leaflet to be distributed; and
(3) If the person who causes the handbill, circular, track or leaflet to be printed, written, compiled, manufactured or distributed is a fictitious person, the true name of the owner, manager or agent of the person sponsoring such material.
(b) No person shall post, hand out, or distribute handbills, circulars, tracks or leaflets which reasonably tend to incite a riot or other public disorder or which advocates disloyalty to, or the overthrow of, the government of the United States or of the State of California by force of arms or other unlawful means, or which urges any unlawful conduct, or which encourages or reasonably tends to encourage a breach of the public peace of the community.
ARTICLE 8. SEXUALLY ORIENTED BUSINESSES
DIVISION 1. GENERAL
Sec. 5-1.8.101. Purpose.
This Article sets forth the terms and conditions for obtaining a permit to operate a sexually oriented business.
Sec. 5-1.8.102. Definitions.
Unless otherwise apparent from context, the following terms are defined for the purposes of this Article:
(a) "Employee" means a person who works or performs in and/or for a sexually oriented business, regardless of whether or not said person is paid a salary, wage or other compensation by the operator of the business.
(b) "Establishment" means and includes any of the following:
(1) The opening or commencement of any such business as a new business; (2) The conversion of an existing business, whether or not a sexually oriented business, to any of the sexually oriented businesses defined in this Article;
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(3) The addition of any of the sexually oriented businesses defined in this Article to any other existing sexually oriented business; or
(4) The relocation of any such sexually oriented business. (c) "Nudity" or "state of nudity" means: the appearance of human bare buttock, anus, male genitals, female genitals, or the areola or nipple of the female breast; or a state of dress which fails to opaquely and fully cover a human buttocks, anus, male or female genitals, pubic region or areola or nipple of the female breast.
(d) "Operator" means and includes the owner, permit holder, custodian, manager, operator or person in charge of any permitted or licensed premises.
(e) "Permitted or Licensed Premises" means any premises that requires a license and/or permit and that is classified as a sexually oriented business.
(f) "Permittee or Licensee" means a person in whose name a permit or license to operate a sexually oriented business has been issued, as well as the individual listed as an applicant on the application for a permit and/or license.
(g) "Person" means an individual, proprietorship, partnership, corporation, association, or other legal entity.
(h) "Public building" means any building owned, leased or held by the United States, the state, the county, the city, any special district, school district, or any other agency or political subdivision of the state or the United States, which building is used for governmental purposes. (i) "Public park" or "recreation area" means public land which has been designated for park or recreational activities including but not limited to a park, playground, nature trails, swimming pool, reservoir, athletic field, basketball or tennis courts, pedestrian/bicycle paths, open space, wilderness areas, or similar public land within the city which is under the control, operation, or management of the City.
(j) "Religious institution" means any church, synagogue, mosque, temple or building which is used primarily for religious worship and related religious activities. (k) "Residential District or Use" means a single family, duplex, townhouse, multiple family, or mobile park or subdivision and campground as defined in this Code.
(l) "School" means any public or private educational facility including but not limited to child day care facilities, nursery schools, preschools, kindergartens, elementary schools, primary schools, intermediate schools, junior high schools, middle schools, high schools, vocational schools, secondary schools, continuation schools, special education schools, junior colleges, and universities. School includes the school grounds, but does not include the facilities used primarily for another purpose and only incidentally as a school.
(m) "Semi-nude" means a state of dress in which clothing covers no more than the genitals, pubic region, and areola of the female breast, as well as portions of the body covered by supporting straps or devices.
(n) "Sexually oriented business" means an adult arcade, adult bookstore, adult novelty shop, adult video store, adult cabaret, adult motel, adult motion picture theater, adult theater, massage parlor, sexual encounter establishment, escort agency or nude model studio. (o) "Sexually oriented businesses" are those businesses defined as follows:
(1) "Adult arcade" means an establishment where, for any form of consideration, one or more still or motion picture projectors, slide projectors, or similar machines, or other image producing Created: 2022-05-13 14:23:11 [EST]
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machines, for viewing by five or fewer persons each, are regularly used to show films, motion pictures, video cassettes, slides, or other photographic reproductions which are characterized by the depiction or description of "specified sexual activities" or "specified anatomical areas." (2) "Adult bookstore," "adult novelty store" or "adult video store" means a commercial establishment which has as a significant or substantial portion of its stock-in-trade or derives a significant or substantial portion of its revenues or devotes a significant or substantial portion of its interior business or advertising to the sale, rental for any form of consideration, of any one or more of the following:
(i) Books, magazines, periodicals or other printed matter, or photographs, films, motion pictures, video cassettes, slides, or other visual representations which are characterized by the depiction or description of "specified sexual activities" or "specified anatomical areas"; (ii) Instruments, devices, or paraphernalia which are designed for use or marketed primarily for stimulation of human genital organs or for sado-masochistic use or abuse of themselves or others.
(iii) An establishment may have other principal business purposes that do not involve the offering for sale, rental or viewing of materials depicting or describing "specified sexual activities" or "specified anatomical areas," and still be categorized as adult bookstore, adult novelty store, or adult video store. Such other business purposes will not serve to exempt such establishments from being categorized as an adult bookstore, adult novelty store or adult video store if one of its principal business purposes is offering for sale or rental, for some form of consideration, the specified materials which depict or describe "specified anatomical areas" or "specified sexual activities."
(3) "Adult cabaret" means a nightclub, bar, restaurant "bottle club," or similar commercial establishment, whether or not alcoholic beverages are served, which regularly features: (i) persons who appear nude or in a state of nudity or semi-nude; (ii) live performances which are characterized by the exposure of "specified anatomical areas" or by "specified sexual activities," or (iii) films, motion pictures, video cassettes, slides, or other photographic reproductions which are characterized by the depiction or description of "specified sexual activities" or "specified anatomical areas."
(4) "Adult motel" means a motel, hotel or similar commercial establishment which: (a) offers public accommodations, for any form of consideration, which provides patrons with closed-circuit television transmissions, films, motion pictures, video cassettes, slides or other photographic reproductions which are characterized by the depiction or description of "specified sexual activities" or "specified anatomical areas" and which advertises the availability of this sexually oriented type of material by means of a sign visible from the public right-of-way, or by means of any off-premises advertising including but not limited to, newspapers, magazines, pamphlets or leaflets, radio or television, or (b) offers a sleeping room for rent for a period of time less than ten (10) hours; or (c) allows a tenant or occupant to sub-rent the sleeping room for a time period of less than ten (10) hours.
(5) "Adult motion picture theater" means a commercial establishment where films, motion pictures, video cassettes, slides or similar photographic reproductions which are characterized by the depiction or description of "specified sexual activities" or "specified anatomical areas" are regularly shown for any form of consideration.
(6) "Adult theater" means a theater, concert hall, auditorium, or similar commercial establishment which, for any form of consideration, regularly features persons who appear in a state of nudity or live performances which are characterized by exposure of "specified anatomical areas" or by "specified sexual activities."
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(7) "Escort" means a person who, for any form of consideration, agrees or offers to act as a companion, guide, or date for another person, or who agrees or offers to privately model lingerie or to privately perform a striptease for another person. (8) "Escort agency" means a person or business association who furnishes, offers to furnish, or advertises to furnish escorts as one of its primary business purposes for a fee, tip, or other consideration.
(9) "Massage parlor" means any place where, for any form of consideration or gratuity, massage, alcohol rub, administration of fomentations, electric or magnetic treatments, or any other treatment involving manipulation of the human body which occurs as a part of or in connection with "specified sexual activities," or where any person providing such treatment, manipulation, or service related thereto, exposes his or her "specified anatomical areas." The definition of sexually oriented businesses shall not include the practice of massage at a massage office or by a massage/bodywork professionally licensed by the City.
(10) "Nude model studio" means any place where a person, who regularly appears in a state of nudity or displays "specified anatomical areas" is provided money or any other form of consideration to be observed, sketched, drawn, painted, sculptured, photographed, or similarly depicted by other persons.
(11) "Sexual encounter establishment" means a business or commercial establishment, that as one of its primary business purposes, offers for any form of consideration, a place where two or more persons may congregate, associate, or consort for the purpose of "specified sexual activities" or the exposure of "specified anatomical areas" or activities when one or more of the persons is in a state of nudity or semi-nude. The definition of sexually oriented businesses shall not include an establishment where a medical practitioner, psychologist, psychiatrist, or similar professional person licensed by the state engages in medically approved and recognized sexual therapy. (p) "Specified anatomical areas," as used in this division means and includes any of the following:
(1) Less than completely and opaquely covered human genitals, pubic region, buttocks, anus, or female breasts below a point immediately above the top of the areolae; or (2) Human male genitals in a discernible turgid state, even if completely and opaquely covered. (q) "Specified sexual activities," means and includes any of the following:
(1) The fondling or other intentional touching of human genitals, pubic region, buttocks, anus, or female breasts;
(2) Sex acts, normal or perverted, actual or simulated, including intercourse, oral copulation, or sodomy;
(3) Masturbation, actual or simulated; or
(4) Human genitals in a state of sexual stimulation, arousal or tumescence; (5) Excretory functions as part of or in connection with any of the activities set forth in subdivisions (1) through (4) of this subsection.
(r) "Substantial enlargement of a sexually oriented business" means increase in the floor areas occupied by the business by more than 15%, as the floor areas exist on January 1, 1997. (s) "Transfer of ownership or control of a sexually oriented business" means and includes any of the following:
(1) The sale, lease or sublease of the business;
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(2) The transfer of securities which constitute a controlling interest in the business, whether by sale, exchange or similar means;
(3) The establishment of a trust, gift or other similar legal devise which transfers ownership or control of the business, except for transfer by bequest or other operation of law upon the death of a person possessing the ownership or control.
Sec. 5-1.8.103. Permit and License Required.
(a) No sexually oriented business shall operate without a valid sexually oriented business permit issued by the City for the particular type of business. It shall be unlawful to operate a sexually oriented business without such permit.
(b) Each individual to be employed in a sexually oriented business, who engages in the services rendered by a nude model studio, sexual encounter establishment, or a live performer or entertainer, shall obtain a Sexually Oriented Business Employee License.
Sec. 5-1.8.104. Authority delegated.
(a) The City Manager or designee shall grant, deny, revoke, renew, suspend, and cancel sexually oriented business permits for proposed or existing sexually oriented businesses. The City Manager or designee shall ascertain whether a proposed sexually oriented business for which a permit is being applied for complies with all locational requirements of the City's zoning regulations now in effect or as amended or enacted subsequent to the effective date of this Section.
(b) The California City Police Department shall provide information on whether an applicant has been convicted of a specified criminal act during the time period set forth. (c) The City is responsible for inspecting a proposed, permitted or non-permitted sexually oriented business in order to ascertain whether it is in compliance with applicable statutes and ordinances.
DIVISION 2. APPLICATIONS
Sec. 5-1.8.201. Permit application.
(a) Any person desiring to operate a sexually oriented business shall file with the City an original and two copies of a sworn permit application on the standard application form supplied by the City or designee. (b) The completed application shall contain the following information and shall be accompanied by the following documents:
(1) If the applicant is:
(i) An individual: The individual shall state legal name and any aliases and submit satisfactory proof the applicant is at least eighteen years of age;
(ii) A partnership: The partnership shall state its complete name, and the names of all partners, whether the partnership is general or limited, and a copy of the partnership agreement, if any; (iii) A corporation, the corporation shall state its complete name, the date of its incorporation, evidence the corporation is in good standing under the laws of California, the names and capacity of all officers, directors and principal stockholders, and the name of the registered corporate agent and the address of the registered office for service of process.
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(2) If the applicant intends to operate the sexually oriented business under a name other than the applicant; the applicant must state the sexually oriented business's fictitious name and submit the required registration documents.
(3) Whether the applicant or any of the other individuals listed pursuant to this Section, within the two or five year period (as specified below) immediately preceding the date of the application, has been convicted of a specified criminal act, and, if so, the specified criminal act, the date of conviction and the place of conviction.
(4) Whether the applicant or any of the other individuals listed in the application pursuant to this Section has had a previous permit under the Article or other similar sexually oriented business ordinances from another city or county denied, suspended or revoked, including the name and location of the sexually oriented business for which the permit was denied, suspended or revoked, as well as the date of the denial, suspension or revocation, and whether the applicant or any other individuals listed pursuant to this Section has been a partner in a partnership or an officer, director or principal stockholder of a corporation that is identified under this Section whose permit has previously been denied, suspended or revoked, including the name and location of the sexually oriented business for which the permit was denied, suspended or revoked as well as the date of denial, suspension or revocation. (5) Whether the applicant or any other individual listed under this Section holds any other permits or licenses under this Code or other similar sexually oriented business ordinances from another city or county and, if so, the names and locations of such other permitted businesses. (6) The single classification of permit for which the applicant is filing. (7) The location of the proposed sexually oriented business, including a legal description of the property, street address, and telephone number(s), if any.
(8) The applicant's mailing addresses and residential address. (9) A recent photograph of the applicant(s).
(10) The applicant's driver's permit number, Social Security number, and State or federally issued tax identification number.
(11) A sketch or diagram showing the configuration of the premises, including a statement of total floor space occupied by the business. The sketch or diagram need not be professionally prepared, but it must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six (6) inches.
(12) A straight-line drawing prepared by a registered land surveyor or civil engineer depicting the property lines and the structures containing any established existing uses regulated by this Code within one thousand (1,000) feet of the property to be certified; the property lines of any established religious institution/synagogue, school, or public park or recreation area within one thousand (1,000) feet of the property to be certified; and the property lines of any residentially zoned area or residential property within one thousand (1,000) feet of the property to be certified. For purposes of this Section, other than a "line performance," a use shall be considered existing or established if it is in existence at the time an application is submitted. For permit renewals, the original survey may be filed in lieu of a new survey.
(13) If the applicant is an individual, the applicant must sign the application for a permit as applicant. If the applicant is other than an individual, each individual who has a 10% or greater interest in the business must sign the application as applicant. If a corporation is the owner of a sexually oriented business or as the entity which wishes to operate such a business, each individual having a 10% or greater interest in the corporation must sign the application as applicant.
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(14) If an applicant wishes to operate a sexually oriented business which shall exhibit on the premises films, video cassettes, or other video reproductions which depict specified sexual activities or specified anatomical areas, the applicant shall also comply with the application requirements set forth below concerning exhibitions of sexually explicit films or videos in video booths. (c) Applicants for a permit under this Section shall have a continuing duty to promptly supplement application information required by this Section if such information changes in any way from what is stated on the application. The failure to comply with this continuing duty within thirty days from the date of such change, by supplementing the application on file with the City Manager or designee, shall be grounds for suspension of a permit.
(d) If the City Manager or designee determines or learns at any time the applicant has improperly completed the application for a proposed sexually oriented business, the City Manager shall promptly notify the applicant of such fact and allow the applicant ten (10) days to properly complete the application. (The time period for granting or denying a permit shall be stayed during the period in which the applicant is allowed an opportunity to properly complete the application.)
(e) The applicant shall pay a non-refundable application fee at the time of filing an application in an amount from time-to-time established by the council by resolution. (f) Prior to obtaining any permit or license to operate any sexually oriented business defined in this Article, and as part of any application for a permit under this Chapter, the applicant shall obtain from the City a certification that the proposed location of such business complies with the locational requirements of Title 9 of this Code.
(g) The fact a person possesses other types of State or City permits or licenses does not exempt a person from the requirement of obtaining a sexually oriented business permit. (h) By applying for a permit under this Article, the applicant shall be deemed to have consented to the provisions of this Article and to the exercise by the City Manager or his/her designee, the California City Police Department and all other City agencies charged with enforcing the laws, ordinances and codes applicable in the City of their respective responsibilities under this Article. (i) The applicant shall provide the City with the names of any and all employees who are required to be licensed pursuant to this Article. This shall be a continuing requirement even after a permit is granted or renewed.
Sec. 5-1.8.202. License Applications.
(a) Before any applicant may be issued a Sexually Oriented Business Employee License, the applicant shall submit on a form to be provided by the City Manager or designee the following information:
(1) The applicant's name or any other names (including 'stage' names) or aliases used by the individual; (2) Age, date, and place of birth;
(3) Height, weight, hair and eye color;
(4) Present residence address and telephone number;
(5) Present business address and telephone number;
(6) State driver's license or identification number;
(7) Social Security number; and
(8) Acceptable written proof that the individual is at least eighteen (18) years of age.
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(9) Attached to the application form as provided above, a color photograph of the applicant clearly showing the applicant's face, and the applicant's fingerprints on a form provided by the California City Police Department. Any fees for the photographs and fingerprints shall be paid by the applicant. (10) A statement detailing the license or permit history of the applicant for the five years immediately preceding the date of the filing of the application, including whether such applicant previously operating or seeking to operate, in this or any other county, city, state, or country has ever had a license, permit, or authorization to do business denied, revoked, or suspended, or had any professional or vocational license or permit denied, revoked, or suspended. In the event of any such denial, revocation, or suspension, state the date, the name of the issuing or denying jurisdiction, and describe in full the reasons for the denial, revocation, or suspension. A copy of any order of denial, revocation, or suspension shall be attached to the application.
(11) Whether the applicant has been convicted of a "specified criminal" act described in this Article. This information shall include the date, place, nature of each conviction or plea of nolo contendere and identifying the convicting jurisdiction.
(b) The City Manager or designee shall refer the Sexually Oriented Business Employee License Application to the California City Police Department for an investigation to be made of such information as is contained on the application. The application process shall be completed within thirty days from the date the completed application is filed. After the investigation, the City Manager or designee shall issue a license unless the report from the California City Police Department finds one or more of the following is true:
(1) The applicant has knowingly made any false, misleading, or fraudulent statement of a material fact in the application for a license, or in any report or record required to be filed with the sheriff's department or other department of the city;
(2) The applicant is under eighteen years of age;
(3) The applicant has been convicted of a "specified criminal act" as defined in this Article; (4) The Sexually Oriented Business Employee License is to be used for employment in a business prohibited by local or state law, statute, rule or regulation, or prohibited by particular provisions of this Article;
(5) The applicant has had a Sexually Oriented Business Employee License revoked by the city within two (2) years of the date of the current application;
(c) A license granted pursuant to this Section shall be subject to annual renewal by the City Manager or designee upon the written application of the applicant and a finding by the City Manager or designee and the California City Police Department that the applicant has not been convicted of any "specified criminal act" as in this Article or committed any act during the existence of the previous license period which would be grounds to deny the initial permit application. The renewal of the license shall be subject to payment of a fee as set by a resolution of the City Council.
Sec. 5-1.8.203. Investigation.
(a) Upon receipt of an application properly filed with the City and upon payment of the non-refundable application fee, the City Manager or designee shall immediately stamp the application as received and shall immediately send photocopies of the application to the California City Police Department and any other City agencies responsible for enforcement of health, fire and building codes and laws. Each department or agency shall promptly conduct an investigation of the applicant, application and the proposed sexually oriented business in accordance with its responsibilities under law and as set forth in this Article. This investigation shall be completed within twenty (20) days of receipt of the application by the City or its designee. At the conclusion of each investigation, each department or agency shall indicate on the photocopy of the Created: 2022-05-13 14:23:11 [EST]
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application approval or disapproval of the application, date, signature, and, disapproved, state the reasons therefor. The California City Police Department shall only be required to certify the NCIC records request check. The California City Police Department shall not be required to approve or disapprove applications. (b) The City shall disapprove an application if it finds the proposed sexually oriented business will be in violation of any provision of any statute, code, ordinance, regulation or other law in effect in the City. After its indication of approval or disapproval, each department shall immediately return the photocopy of the application to the City Manager or designee.
(c) The applicant must be qualified according to the provisions of this Article and the premises must be inspected and found to be in compliance with health, fire and building codes and laws.
Sec. 5-1.8.204. Action on Application.
(a) The City Manager or designee shall grant or deny an application for a permit within sixty (60) days from the date of its proper filing. The application shall be deemed approved on the sixtieth day, unless the City Manager or designee denies the application and states the reasons(s) for that denial. (b) If granted, the permit shall state on its face the name of the person or persons to whom it is granted, the expiration date, and the address of the sexually oriented business. The permit shall also indicate the Sexually Oriented Business whether permitted or not may be subject to prohibitions against Public Nudity and Indecency pursuant to the United States Supreme Court decision in Barnes v. Glen Theatre, Inc., 111 S.Ct. 2456 (1991). The permit shall be posted in a conspicuous place at or near the entrance to the sexually oriented business so that it can be read easily at any time. (c) Denial of Application for Permit. The City Manager or designee shall deny the application for any of the following reasons:
(1) An applicant is under eighteen (18) years of age.
(2) An applicant or an applicant's spouse is overdue on payment to the City of taxes, fees, fines, or penalties assessed or imposed in relation to a sexually oriented business. (3) An applicant is residing with a person who has been denied a permit by the City to operate a sexually oriented business within the preceding twelve months, or residing with a person whose permit to operate a sexually oriented business has been revoked within the preceding twelve months. (4) An applicant has failed to provide information required by this Article or permit application for the issuance of the permit or has falsely answered a question or request for information on the application form.
(5) The premises to be used for the sexually oriented business have not been approved as being in compliance with health, fire and building codes by the department or agency responsible under law for investigating said compliance.
(6) The permit fees required by this Article have not been paid. (7) An applicant is in violation of, or is not in compliance with, any of the provisions of this Article including but not limited to the zoning locational requirements for a sexually oriented business under Title 9 of this Code.
(8) The granting of the application would violate a statute, ordinance, or court order. (9) The applicant has a permit under this Article which has been suspended or revoked. (10) An applicant has been convicted of a "specified criminal" act for which:
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(i) Less than two (2) years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the conviction is of a misdemeanor offense for the "specified criminal acts" which are sexual crimes against children, sexual abuse, rape or crimes connected with another sexually oriented business including but not limited to distribution of obscenity or material harmful to minors, prostitution, pandering, or tax violations; (ii) Less than five (5) years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the conviction is of a felony offense; for the "specified criminal acts" which are sexual crimes against children, sexual abuse, rape or crimes connected with another sexually oriented business including but not limited to distribution of obscenity or material harmful to minors, prostitution, pandering, or tax violations; (iii) Less than five (5) years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the convictions are of two (2) or more misdemeanor offenses for "specified criminal acts" which are sexual crimes against children, sexual abuse, rape or crimes connected with another sexually oriented business including but not limited to distribution of obscenity or materials harmful to minors, prostitution, pandering or tax violations; offenses occurring within any twenty-four-month period; (iv) The fact a conviction is being appealed shall have no effect on disqualification of the applicant; An applicant who has been convicted of the above described "specified criminal acts" may qualify for a sexually oriented business permit only when the time period mentioned above has elapsed. (v) An applicant has knowingly employed an employee who does not have a valid license as required by this Article.
(vi) The applicant applies for a permit for a particular location within a period of twelve months from the date of denial of a previous application for a permit at the location, and there has not been an intervening change in the circumstances which could reasonably be expected to lead to a different decision regarding the former reasons for denial, the application shall be denied. (vii) If the City Manager or the City Manager's designee, denies the application, he/she shall notify the applicant of the denial and state the reasons(s) for the denial.
DIVISION 3. PERMITS
Sec. 5-1.8.301. Annual Fee.
(a) The holder of a sexually oriented business permit shall pay an annual fee as established by the Council by resolution.
(b) Each applicant for an employee license shall pay a permit fee is to cover reasonable administrative costs of the licensing application process in an amount from time-to-time established by the Council by resolution.
Sec. 5-1.8.302. Inspection.
(a) An applicant or permittee shall permit representatives of the Code Enforcement Office, the County Health Department, and the Fire Department to inspect the premises of a sexually oriented business for the purpose of ensuring compliance with the law, at any time it is occupied or open for business. (b) It shall be unlawful and a person who operates a sexually oriented business or the agent or employee of the operator, regardless of whether or not a permit has been issued for the business under this Article, and such person commits a misdemeanor for refusing to permit such lawful inspection of the premises at any time it is occupied or open for business.
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Sec. 5-1.8.303. Expiration of Permit.
(a) Each permit shall expire one (1) year from the date of issuance and may be renewed only by making application as provided in this Article. Application for renewal shall be made at least thirty (30) days before the expiration date, and when made less than thirty (30) days before the expiration date, the expiration of the permit will not be affected.
(b) When the City Manager or designee denies renewal of the permit, the applicant shall not be issued a permit under this Article for one (1) year from the date of denial. If, subsequent to denial, the City Manager or designee finds the basis for denial of the renewal of the permit has been corrected, the applicant shall be granted a permit if at least ninety days have elapsed since the date the denial became final.
Sec. 5-1.8.304. Suspension of Permit.
(a) The City Manager or designee shall suspend a permit for a period not to exceed thirty days if the City Manager determines a permittee, or an employee of a permittee, has:
(1) Violated or is not in compliance with any section of this Article; or (2) Been under the influence of alcoholic beverages while working in the sexually oriented business premises; or
(3) Refused to allow an inspection of the sexually oriented business premises as authorized by this Article; or
(4) Knowingly permitted gambling by any person on the sexually oriented business premises; or (5) Operated the sexually oriented business in violation of a building, fire, health, or zoning statute, code, ordinance or regulation, whether federal, state or local, the determination being based on investigation by the department charged with enforcing such rules or laws. In the event of such violation, the City Manager or designee shall promptly notify the permittee of the violation and shall allow the permittee a seven-day period in which to correct the violation. If the permittee fails to correct the violation before the expiration of the seven-day period, the City Manager or designee shall forthwith suspend the permit and shall notify the permittee of the suspension. (6) Engaged in a permit transfer contrary to the intent of this Article. If the City or its designee, suspends a permit on the ground a permittee engaged in a permit transfer contrary to this Article, the City Manager or designee shall forthwith notify the permittee of the suspension. The suspension shall remain in effect until the applicable section of this Article has been satisfied. (7) Operated the sexually oriented business in violation of the hours of operation. (8) Knowingly employs a person who does not have a valid license as required by this Article. (b) The suspension shall remain in effect until the violation of the statute, code, ordinance or regulation in question has been corrected.
Sec. 5-1.8.305. Revocation of Permit.
(a) The City Manager or designee shall revoke a permit if a cause of suspension occurs and the permit has been suspended within the preceding twelve (12) months.
(b) The City Manager or designee shall revoke a permit upon determining that:
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(2) A permittee or an employee has knowingly allowed possession, use or sale of controlled substances in or on the premises; or
(3) A permittee or an employee has knowingly allowed prostitution on the premises; or (4) A permittee or an employee knowingly operated the sexually oriented business during a period of time when the permittee's permit was suspended; or
(5) A permittee has been convicted of a "specified criminal act" for which the time period required in by this Article has not elapsed; or
(6) On two or more occasions within a twelve-month period, a person or persons committed an offense, occurring in or on the permitted premises, constituting a specified criminal act for which a conviction has been obtained, and the person or persons were employees of the sexually oriented business at the time the offenses were committed. The fact a conviction is being appealed shall have no effect on the revocation of the permit; or
(7) A permittee is convicted of tax violations for any taxes or fees related to a sexually oriented business; or
(8) A permittee or an employee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation, or any other specified sexual activities to occur in or on the permitted premises.
(9) A permittee has been operating more than one (1) sexually oriented business under a single roof except as provided in Title 9 of this Code.
(c) When the City Manager or designee revokes a permit, the revocation shall continue for one (1) year and the permittee shall not be issued a sexually oriented business permit for one (1) year from the date revocation became effective. If, subsequent to revocation, the City Manager or designee finds the basis for revocation has been corrected, the applicant shall be granted a permit if at least ninety (90) days have elapsed since the date revocation became effective.
Sec. 5-1.8.306. Judicial Review of Permit Denial, Suspension or Revocation.
After denial of an application or a renewal of an application, or suspension or revocation of a permit, the applicant or permittee may seek prompt review of such administrative action by the Planning Commission. If the denial, suspension or revocation is affirmed upon review, the administrative action shall be promptly reviewed by the City Council. The decision of the City Council is final unless changed by a court of competent jurisdiction.
Sec. 5-1.8.307. Transfer of Permit.
(a) A permittee shall not operate a sexually oriented business under the authority of a permit at any place other than the address designated in the application for permit. (b) A permittee shall not transfer a permit to another person unless and until such other person satisfies the following requirements:
(1) Obtains an amendment to the permit from the City Manager or designee which provides the transferee is the permittee, which amendment may be obtained only if the transferee has completed and properly filed an application with the City Manager or designee, setting forth the information required of applicants for permits under this Article; and
(2) Pays a transfer fee of 20% of the annual permit fee.
Created: 2022-05-13 14:23:12 [EST]
(Supp. No. 10)
(c) No permit may be transferred when the City Manager or designee has notified the permittee that suspension or revocation proceedings have been or will be brought against the permittee. (d) A permittee shall not transfer a permit to another location. (e) Any attempt to transfer a permit either directly or indirectly in violation of this Section is void and the permit shall be deemed revoked.
DIVISION 4. REGULATIONS
Sec. 5-1.8.401. Exhibition of Sexually Explicit Films or Videos in Video Booths. (a) A person who operates or causes to be operated a sexually oriented business, other than a sexually oriented motel/hotel and regardless of whether or not a permit has been issued to the business under this Article, which exhibits on the premises in a viewing room of less than one hundred fifty (150) square feet of floor space, a film, video cassette or other video reproduction which depicts specified sexual activities or specified anatomical areas, shall comply with the following requirements:
(1) Upon application for a sexually oriented business permit, the application shall be accompanied by a diagram of the premises showing a plan thereof specifying the location of one or more manager's stations, the location of all overhead lighting fixtures and designating any portion of the premises in which patrons will not be permitted. A manager's station may not exceed thirty-two (32) square feet of floor area with no dimension greater than eight (8) feet. The diagram shall also designate the place at which this permit will be conspicuously posted, if granted. A professionally prepared diagram in the nature of an engineer's or architect's blueprint shall not be required; however, each diagram should be oriented to the north or to some designated street or object and should be drawn to a designated scale with marked dimensions sufficient to show the various internal dimension of all areas of the interior of the premises to an accuracy of plus or minus six (6) inches. The City Manager or designee, may waive the foregoing diagram for renewal applications if the applicant adopts a diagram that was previously submitted and certifies that the configuration of the premises has not been altered since it was prepared.
(2) The application shall be sworn to be true and correct by the applicant. (b) No alteration in the configuration or location of a manager's station may be made without the prior approval of the City Manager or designee.
(c) The owners and operator of the premises shall ensure at least one employee is on duty and situated at each manger's station at all times any patron is present inside the premises. (d) The interior of the premises shall be configured in such a manner so that there is an unobstructed view from a manager's station of every area of the premises to which any patron is permitted access for any purpose, excluding restrooms. Restrooms may not contain video reproduction equipment. If the premises have two or more manager's stations designated, the interior of the premises shall be configured in such a manner there is an unobstructed view of each area of the premises to which any patron is permitted access from at least one of the manager's stations. The view required in this subsection must be by direct line of sight from the manager's station.
(e) The owners and operator, and any agents and employees present on the premises shall ensure the view area specified herein remains unobstructed by any doors, walls, merchandise, display racks or other materials or person at all times and to ensure no patron is permitted access to any area of the premises which has been designated as an area in which patrons will not be permitted in the application filed pursuant to this Section. (f) No viewing room may be occupied by more than one person at any time.
Created: 2022-05-13 14:23:12 [EST]
(Supp. No. 10)
(g) The premises shall be equipped with overhead lighting fixtures of sufficient intensity to illuminate every place to which patrons are permitted access and an illumination of not less than two (2.0) foot candles as measured at the floor level.
(h) The owners and operator and any agents and employees present on the premises shall ensure the illumination described above is maintained at all times that any patron is present on the premises.
Sec. 5-1.8.402. Minors and Sexually Oriented Businesses.
A person commits a misdemeanor who operates or causes to be operated a sexually oriented business, regardless of whether or not a permit has been issued for the business under this Article, and knowingly or with reasonable cause to know, permit, suffer, or allows:
(1) Admittance of a person under eighteen (18) years of age to the business premises unless accompanied by a parent or guardian;
(2) A person under eighteen (18) years of age to remain at the business premises unless accompanied by a parent or guardian;
(3) A person under eighteen (18) years of age to purchase goods or services at the business premises without the specific consent of a parent or guardian; or (4) A person who is under eighteen (18) years of age to work at the business premises as an employee.
Sec. 5-1.8.403. Advertising.
(a) It shall be unlawful and a person commits a misdemeanor who operates or causes to be operated a sexually oriented business, regardless of whether or not a permit has been issued for the business under this Article, and advertises the presentation of any activity prohibited by any applicable State statute or local ordinance. (b) It shall be unlawful and a person commits a misdemeanor who operates or causes to be operated a sexually oriented business, regardless of whether or not a permit has been issued for the business under this Article, and displays or otherwise exhibits the materials and/or performances at such sexually oriented business in any advertising which is visible outside the premises. This prohibition shall not extend to advertising of the existence or location of such sexually oriented business. (c) The permittee shall not allow any portion of the interior premises of a sexually oriented business to be visible from outside the premises.
(d) All off-street parking areas and premises' entries of the sexually oriented business shall be illuminated from dusk to closing hours of operation with a lighting system which provides an average maintained horizontal illumination of one (1) foot candle of light on the parking surface and/or walkways. This required lighting level is established to provide sufficient illumination of the parking areas and walkways serving the sexually oriented business for the personal safety of patrons and employees and to reduce the incidence of vandalism and criminal conduct. The lighting shall be shown on the required sketch or diagram of the premises.
Sec. 5-1.8.404. Hours of Operation.
(a) It shall be unlawful and a person commits a misdemeanor who operates or causes to be operated a sexually oriented business, regardless of whether or not a permit has been issued for the business under this Article, and allows such business to remain open for business, or to permit any employee to engage in a performance, solicit a performance, make a sale, solicit a sale, provide a service, or solicit a service, between the hours of 1:00 a.m. and 9:00 a.m. of any particular day.
Created: 2022-05-13 14:23:12 [EST]
(Supp. No. 10)
(b) It shall be unlawful and a person commits a misdemeanor if, working as an employee of a sexually oriented business, regardless of whether or not a permit has been issued for the business under this Article, said employee engages in a performance, solicits a performance, makes a sale, solicits a sale, provides a service, or solicits a service between the hours of 1:00 a.m. and 9:00 a.m.
Sec. 5-1.8.405. Nudity at Sexually Oriented Businesses Not Offering for Sale Alcoholic Beverages Subject to Prohibition Pursuant to the U.S. Supreme Court Decision in Barnes v. Glen Theatre, Inc.
Public nudity is prohibited within the City, including any sexually oriented business. Any sexually oriented business which is found in violation of this section shall have its permit suspended.
DIVISION 5. ENFORCEMENT
Sec. 5-1.8.501. Criminal Prohibitions For The Operation of A Sexually Oriented Business Without A Valid Permit.
(a) The following additional criminal provisions shall also apply to sexually oriented businesses in addition to the criminal provisions found at other sections of this Article. (b) It shall be unlawful and a person commits a misdemeanor who operates or causes to be operated a sexually oriented business, regardless of whether or not a permit has been issued for the business under this Article, and said person knows or should know that:
(1) The business does not have a sexually oriented business permit under this Article for any applicable classification;
(2) The business has a permit which is under suspension; (3) The business has a permit which has been revoked; or (4) The business has a permit which has expired.
Sec. 5-1.8.502. Exemptions.
(a) It is a defense to prosecution for any violation of this Article that a person appearing in a state of nudity did so in a modeling class operated:
(1) By a college, junior college, or university supported entirely or partly by taxation; (2) By a private college or university which maintains and operates educational programs in which credits are transferable to a college, junior college, or university supported entirely or partly by taxation; or (3) In a structure:
(i) Which has no sign visible from the exterior of the structure and no other advertising that indicates a nude person is available for viewing; and
(ii) Where, in order to participate in a class a student must enroll at least three (3) days in advance of the class; and
(iii) Where no more than one (1) nude model is on the premises at any one time.
Created: 2022-05-13 14:23:12 [EST]
(Supp. No. 10)
(b) It is a defense to prosecution for a violation of this Article that an employee of a sexually oriented business, regardless of whether or not it is permitted under this Article, exposed any specified anatomical area during the employee's bona fide use of a restroom, or during the employee's bona fide use of a dressing room which is accessible only to employees.
Sec. 5-1.8.503. Criminal Penalties and Additional Legal, Equitable, and Injunctive Relief. (a) In addition to whatever penalties are applicable under the Penal Code, if any person fails or refuses to obey or comply with or violates any of the criminal provisions of this Article, such person upon conviction of such offense, shall be guilty of a misdemeanor and shall be punished by a fine not to exceed $500.00 or by imprisonment not to exceed sixty (60) days, or both, in the discretion of the Court. Each violation or noncompliance shall be considered a separate and distinct offense. Further, each day of continued violation or non-compliance shall be considered as a separate offense. (b) Nothing herein contained shall prevent or restrict the City from taking such other lawful action in any court of competent jurisdiction as is necessary to prevent or remedy any violation or non-compliance. Such other lawful actions shall include, but shall not be limited to, an equitable action for injunctive relief or an action at law for damages.
(c) Further, nothing in this Section shall be construed to prohibit the City from prosecuting any violation of this Article by means of a Code Enforcement Board established pursuant to the authority as provided by the laws of the City.
(d) All remedies and penalties provided for in this Section shall be cumulative and independently available to the City and the City shall be authorized to pursue any and all remedies set forth in this Section to the full extent allowed by law.
Sec. 5-1.8.504. Immunity From Prosecution.
(a) The City Manager and designee, the California City Police Department and all other departments, and all other City officers, agents and employees, charged with enforcement of State and local laws and codes shall be immune from prosecution, civil or criminal, for reasonable, good faith trespass upon a sexually oriented business while acting within the scope of authority conferred by this Article. (b) It is unlawful for anyone to distribute, for commercial purposes, sell or offer for sale any device, instrument or paraphernalia designed or marketed primarily for stimulation of human genital organs or for sadomasochistic use or abuse of themselves or others. (c) Such devices, instruments or paraphernalia include but are not limited to; phallic shaped vibrators, dildos, muzzles, whips, chains, bather restraints, racks, non-medical enema kits, body piercing implements (excluding earrings or other decorative jewelry) or other tools of sado-masochistic abuse. (d) A violation of this section is a misdemeanor punishable by a fine of up to $1000.00 and six (6) months incarceration or both.
ARTICLE 9. OTHER
Sec. 5-1.901. Covering or Capping Required.
Abandoned septic tank, well, pit, or other abandoned excavation, more than five (5) feet in depth and not less than four (4) feet in width at its greatest dimension, shall be covered and capped so there is no danger to persons.
Created: 2022-05-13 14:23:12 [EST]
(Supp. No. 10)
Sec. 5-1.902. Reserved.
Editor's note(s)—Ord. No. 14-724, § 1, adopted Oct. 7, 2014 , repealed former § 5-1.902 in its entirety which pertained to residency restrictions for sex offenders.
CHAPTER 2. GAMES
ARTICLE 1. BILLIARD AND POOL HALLS
Sec. 5-2.101. Licenses.
(a) A license shall be secured for pool rooms and billiards halls. (b) Places where billiard tables or pool tables are maintained for public use shall be and remain closed between the hours of 2:00 a.m. and 6:00 a.m. of every day.
(c) No minor shall be permitted in a poolroom, or other gaming place unless accompanied by parent or guardian or if the minor has in possession written permission of parent or guardian to engage in such activities. such written permission shall be presented, upon demand, to the owner, proprietor, or operator of such establishment and to legally constituted officers of the City. (d) This section shall not permit minors to be present in a public billiard hall, poolroom, or other gaming place within the City where distilled spirits are sold or consumed. (e) No owner, proprietor, or operator of a public billiard hall, poolroom, or other gaming place within the City where beer, wine, or distilled spirits are sold or consumed shall permit any violation of this Article.
ARTICLE 2. COIN-OPERATED GAME MACHINES
Sec. 5-2.201. General.
(a) No person shall rent, lease, or sell a game machine in the City without a license from the City. Such license shall be referred to as an "operator's license."
(b) No person shall use a game machine or offer a game machine for use by other persons without first having secured a license from the City. Such license shall be referred to as a "game machine license." (c) No license shall permit a person under the age of fourteen (14) years to operate a game machine without being accompanied by a parent or guardian.
(d) For the purposes of this Article, "game machine" means a machine, device, or apparatus, the operation or use of which is permitted, controlled, or made possible by the deposit or placing or any coin, plate, disc, slug, or key into any slot, crevice, or other opening, and which is offered for use as a game or contest of any description of for amusement, or which may be used for any such game or contest or for amusement. A game machine which is so constructed or regulated that it may be activated or operated from more than one (1) coin box, slot, or position, shall be considered to be one (1) game machine only.
Created: 2022-05-13 14:23:12 [EST]
(Supp. No. 10)
Sec. 5-2.202. Exceptions.
(a) This Article does not permit the licensing, maintenance, or operation of a game machine forbidden by State law or permit the operation of a game machine in such a manner as to constitute gambling or otherwise be contrary to State law.
(b) This Article shall not apply to a vending machine designed and operated as to sell and deliver merchandise, furnish a service only, equivalent in market value to the value of the coins deposited without the payment or delivery, or the promise of payment or delivery, of anything except the merchandise kept for sale or the service offered therefor.
Sec. 5-2.203. Application.
A person who desires a license under this Article shall make application to the City Clerk on a form provided by the City Clerk.
Sec. 5-2.204. License.
The City Clerk shall issue the license when the application is complete.
Sec. 5-2.205. Licenses: Suspension: Revocation.
The Council may suspend or revoke an operator's license or game machine license.
ARTICLE 3. BINGO GAMES
Sec. 5-2.301. General.
No person shall conduct a bingo game without a permit from the City.
Sec. 5-2.302. Definitions.
The following words are defined for the purposes of this Article:
(a) "Bingo Game" means such a game as is defined in the California Penal Code. (b) "Charitable Organization" means such an organization as is defined in the California Penal Code.
Sec. 5-2.303. Applications.
A person who proposes to conduct a bingo game within the City must provide the City Clerk with the following information authenticated by verification:
(1) Date of application;
(2) Name of applicant;
(3) Legal capacity of applicant, e.g., corporation, partnership, individual; (4) Mailing address of applicant;
(5) Proposed location of bingo game.
Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
(6) Description of the building where the bingo game is to be conducted, including dimensions and type of construction.
(7) Statement the building conforms to applicable laws; (8) Statement the applicant understands the application shall be considered by the City Council only after full investigation and a report thereon has been made by designated City officials; (9) Statement no intoxicating liquors or beverages will be sold, given away, dispensed or consumed in the area designated for bingo games;
(10) Statement the permittee will conform to State and City laws; (11) Statement the applicant has read and understands this Article; (12) Financial statement indicating the operators are capable of meeting the financial requirements of this Article.
Sec. 5-2.304. Investigation and Report.
The Chief of Police, or designee, shall conduct an investigation of the character and integrity of each applicant within thirty (30) days from the date of the application and submitted to the Council at the next regular meeting date subsequent to the conclusion of the investigation.
Sec. 5-2.305. Action on Application.
(a) The City Council may deny the application for a bingo permit if:
(1) The investigation report indicates the applicant does not possess a reputation for good character and integrity;
(2) The financial statement indicates the applicant will be unable to meet the financial obligation imposed by the City; or
(3) For other cause.
(b) If application is denied, the applicant shall be provided with a written statement detailing the reasons for the Council's determination and the applicant shall be given an opportunity to present rebuttal evidence to the Council in writing within twenty (20) days from the date of notification of the Council's action.
Sec. 5-2.306. Permit Conditions.
Each permit shall include the following terms and conditions:
(a) No person who has been convicted of a felony or crime of moral turpitude may participate in the operation of a bingo game.
(b) The bingo games shall be conducted in a building which complies with laws. (c) The operator of the bingo games shall comply with the Penal Code. (d) Bingo games may be conducted only between the hours of 12:00 noon and 12:00 midnight and not more than three (3) days per week. No bingo session shall exceed six (6) continuous hours and not more than one (1) bingo session shall be permitted in any one day by any one permittee. The permittee may not conduct additional bingo sessions at locations where three (3) sessions have been authorized by the City to be conducted during that week. For the purposes of this subsection, a week begins on Sunday.
Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
(e) No person shall serve or consume alcoholic beverages within the rooms where bingo is being played. (f) No persons under the age of thirteen (13) shall operate or participate in a bingo game. (g) Bingo permit, rules and regulations and the permittee's rules of bingo operation shall be conspicuously posted at the public entrance to the room where bingo is played. Posted rules shall be readable, legible and accessible to participants.
(h) A member of the permittee's organization shall be designated as a bingo manager. The bingo manager shall be responsible for the conduct and operation of the bingo games and for compliance with all applicable laws, rules and regulations promulgated thereunder. The bingo manager shall be present during the playing of bingo games.
(i) The total value of prizes awarded for any one bingo game shall not exceed the limit set forth in California Penal Code 326.5, as it may be amended from time to time. Prior to the commencement of each game the prize shall be announced and a facsimile of the type of game to be played shall be clearly displayed to all participants. All prizes shall be awarded immediately following each bingo game. (j) Games shall be completed during each session.
(k) Bingo numbers shall be announced and displayed in full view of players. An adequate public address system shall be used for this purpose.
(l) Each card shall have an equal opportunity to win each game. (m) Advertising or publicity for bingo shall include reference to the valid bingo license permit number issued by the City.
(n) At least two (2) members of the permittee's organization shall jointly count bingo proceeds. Such proceeds shall be deposited into a special bingo account on the next banking day and shall not be commingled with other monies. The monies deposited in the special account may be transferred to another account or fund of the permittee's organization or to another account or fund of other organization or entity associated or affiliated with the permittee's organization for the purpose of implementing charitable expenditures of bingo proceeds, provided:
(1) No monies from sources other than bingo proceeds are placed in such fund; (2) The purpose of such fund is clearly designated as a part of the title or subtitle of the fund and in the books and records of the organization;
(3) Expenditures shall be for the purposes permitted by the Penal Code; (4) Disbursements from the special fund shall be by consecutively numbered checks signed by two (2) authorized officers of the permittee and shall be payable to a specific individual or organization. There shall be written on each check the nature of the expenditure for which the check is drawn. No check shall be drawn to "cash" other than for the payment of incidental bingo expenses. Such checks shall be marked "for deposit to the petty cash fund." Such petty cash fund shall not at any time contain more than $25.00 and a receipt shall be obtained for each disbursement indicating the amount disbursed, the individual or organization receiving the cash disbursement is made.
(o) No person shall play a bingo game on credit.
(p) Bingo financial records including books and records of the permittee and organizations or entities associated with or affiliated with the permittee for the purpose of disbursing charitable expenditures of bingo proceeds shall be available for inspection by the Chief of Police, or designee. ( Ord. No. 15-728, § 1, 1-20-2015 )
Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
Sec. 5-2.307. Revocation of Permit.
(a) The following shall be cause for revocation of a bingo permit:
(1) Determination the application for the permit contained untrue statements; (2) Violation of any federal, state, or local law;
(3) Failure to pay all fees in a timely manner;
(4) Violation of any permit condition;
(b) When a permit is revoked pursuant to this Article, the permittee may file a written appeal and a request a hearing before the City Council.
Sec. 5-2.308. Termination of Permits.
Permits issued shall expire on midnight one year from the date of issuance. The owner of unrevoked permit may apply to renew permit for an additional one-year term. Applications for renewal of permits shall contain the information which is required for the issuance of a permit in the first instance.
Sec. 5-2.309. Transfer and Modification.
Permits may not be transferred to a new location unless application for a new permit is made and the application is approved in accordance with this Article. A change in the items listed in the application shall be promptly reported to the City Clerk and Chief of Police in writing. Each change in the person described in the application shall be considered a license modification for which a fee from time-to-time established by the Council by resolution shall be paid to cover the cost of investigating the new person or persons and for the issuance of a modified permit.
ARTICLE 4. CARD CLUBS
Sec. 5-2.401. General.
(a) No person, owner or employee shall operate a card club without first having obtained a permit pursuant to this Article.
(b) No card club shall employ a person without such person having been photographed and fingerprinted by the Police Department within three (3) days prior to their employment.
Sec. 5-2.402. Definitions.
The following words are defined for the purposes of this Article:
(a) "Card Club" means a business or enterprise licensed for the playing of draw poker, low ball, the game of panguingue (pan), high-low, hold-em, stud poker, seven card stud, pai-gow, California aces, Asian poker or super nine.
(b) "Employee" means a person acting as agent, employee or otherwise, of the owner, as owner, or under the direction of the owner of any card club.
(c) "Owner" means persons, firms, associations, partnerships, corporations or other entities having an interest, legal or equitable, in a card club or card club license or permit.
Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
(d) "Operate" means to form, maintain or participate in the formation or maintenance of a card club.
Sec. 5-2.403. Applications.
A person who intends to operate a card club must provide the City Clerk with the following information authenticated by a verification:
(a) Date of application;
(b) Name of applicant;
(c) Legal capacity of the applicant, e.g., corporation, partnership, individual; (d) If applicant is an individual, present business address, mailing address and residential address; (e) If applicant is not an individual, information shall be presented for each partner or corporate officer; (f) Proposed location of the card club;
(g) Nature of game for which the license is to be issued; (h) Number of tables or other units to be placed, employed or used; (i) Description of the businesses to be conducted at the licensed location; (j) Description of the building including dimensions and type of construction; (k) Statement the building conforms to laws;
(l) Statement the applicant understands the application shall be considered by the Council only after a full investigation and a report made by the Police Department and building inspector or authorized representative;
(m) Statement recognizing no intoxicating liquors or beverages are to be sold, given away, dispensed, consumed or permitted in the area designated for the playing of draw poker or pan, except malt beverages or liquors may be sold and dispensed in an area designated for the playing of draw poker, low ball, the game of panguingue (pan), high-low, hold-em, stud poker, seven card stud, pai-gow, California aces, Asian poker or super nine under the following conditions:
(1) No free or "on the house drinks" may be served in the area designated as the "card room;" (2) No beverages shall be served on the surface of the "playing table" designated as the area for playing cards; and
(3) Beverages will be sold, dispensed or served on a compact portable "caddy" or "tray table" for the exclusive use of beverages or food service.
(n) Statement the permittee shall conform to State and City laws. (o) Statement the applicant has read and understood this Article; (p) Financial statement which indicates the owners of the card club are capable of meeting the financial requirements of this Article.
Sec. 5-2.404. Application Fees.
The owner shall deposit with the City Clerk a non-refundable application fee in an amount to be established from time to time by the City Council by resolution. Each employee employed by a card club shall pay an application fee also in the amount to be established by the City Council from time to time by resolution.
Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
Sec. 5-2.405. Investigation and Reporting.
The Chief of Police shall conduct an investigation of the character and integrity of each applicant within 30 days from the date of the application and submitted to the Council at the next regular meeting after conclusion of the investigation.
Sec. 5-2.406. Action Upon Application.
(a) The City Council may deny the application if:
(1) The investigation report indicates the applicant does not possess a reputation for good character and integrity:
(2) The financial statement indicates the applicant will be unable to meet the financial obligations imposed upon the card club by the City; or
(3) Other cause deemed material by the Council.
(b) If the permit is denied, the applicant shall be provided a written statement detailing the reasons for the determination and giving opportunity to present rebuttal evidence to the Council in writing within twenty (20) days from the date of the notification of the Council's action.
Sec. 5-2.407. Fees.
(a) An annual permit fee shall be paid to the City for each card club in an amount to be determined by the City Council from time to time by a resolution. Fees shall be paid at the time the permit is issued and at each anniversary.
(b) Each card club shall pay an annual fee in an amount to be established from time to time by the City Council based upon the number of tables operated during the preceding year. If a card club increases the number of tables operated during such licensed period, it shall pay to the City the established fee for additional tables.
The license fee shall be paid at the time of issuance of each renewal permit. The license fee payable at the time of the initial issuance of a permit shall be based upon the number of tables intended to be operated or utilized by the card club for the first year of its license. (c) A verified statement of the amount of gross revenue shall be submitted to the City each quarter by the owner of each card club simultaneously with the payment of quarterly table fees. Permittee shall maintain books and records in sufficient detail so as to enable the City to determine the gross income of permittee on a quarterly basis. The City Manager, Finance Director or independent auditor may inspect the books, records and accounts of the permittee at a reasonable time upon written request.
Sec. 5-2.408. Revocation of Permit.
(a) The following shall be cause for the revocation of a card club permit:
(1) A determination the application for permit contained untrue statements; (2) A violation of state, federal or local law;
(3) Failure to pay fees in a timely manner;
(4) Refusal to permit inspection of books and records;
(5) Failure to maintain card tables in full view of the public and of any patrons of said card club; (6) The construction or erection of partitions or other devices which conceal persons playing cards; Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
(7) Failure to maintain the designated card playing area free of intoxicated persons or intoxicants unless such intoxicants are otherwise permitted.
(b) When a permit is revoked, permittee may file a written appeal and request a hearing before the Council.
Sec. 5-2.409. Expiration and Renewal.
(a) Permits shall expire on midnight one year from the date of issuance. (b) The owner of an unrevoked permit may, prior to its expiration, apply to renew such permit for an additional one-year term. Applications for renewal of permits shall contain the information required for the issuance of a permit in the first instance.
Sec. 5-2.410. Transfer of Permits.
Permits may not be transferred unless the proposed transferee makes application for a new permit and the application is approved.
Sec. 5-2.411. Card Club Operations.
Each card club operating under this Article shall comply with all permit conditions and the following:
(a) At least (15) tables shall be operated.
(b) Permittee may not operate more card tables than are stated in the application or permit. (c) No person under the age of twenty-one (21) years shall be allowed in the designated card club areas. (d) The schedule of operating hours shall be specified by the permit. (e) No signs shall be permitted on the exterior of building advertising card games or draw poker, low ball, the game of panguingue (pan), high-low, hold-em, stud poker, seven card stud, pai-gow, California aces, Asian poker or super nine, except pursuant to a special permit approved by the Planning Commission. The permit may be denied or conditionally approved by the Commission in its sole discretion subject to review by the Council.
(f) No subletting, "farming out" or assigning of gaming tables shall be permitted. (g) Draw poker, low ball, the game of panguingue (pan), high-low, hold-em, stud poker, seven card stud, pai-gow, California aces, Asian poker or super nine, shall be confined to one floor of operation.
Sec. 5-2.412. Security Patrol.
The operator, permittee, owner or other person in control of each card club shall provide security for each card club under his control. "Security" means the enforcement of rules and regulations of the federal, state and city government. Security shall also be provided to the immediate parking area of designated card clubs and to those persons who use such parking areas.
ARTICLE 5. EXPERIMENTAL GAMING ACT
Sec. 5-2.501. Purpose and Scope.
This Article regulates gambling within the City as permitted by the People's Experimental Gaming Act, herein "Gaming Act". No person shall gamble, permit or encourage gambling prior to the passage of the Gaming Act, Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
except in compliance with state law. No person shall gamble, permit or encourage gambling after the passage of the Gaming Act except in compliance with the Gaming Act, this Article, and State law.
Sec. 5-2.502. Definitions.
Unless otherwise apparent from context, the following terms are defined for the purposes of this Article:
(a) "Gaming" or "gambling" means acts, games and contrivances by which one risks money or other things of value on a contest or chance of any kind.
(b) "Casino" means a place where gaming is permitted by the City. (c) "License" means the authority to operate a casino evidenced by a document issued by the City pursuant to this Article.
Sec. 5-2.503. General.
(a) No person shall gamble except at a duly licensed casino. (b) No person shall own or operate a casino without a valid and subsisting license secured in accordance with this Article.
(c) Violation of this section is a misdemeanor and a public nuisance.
Sec. 5-2.504. License.
This Article sets forth the requirements for filing an application for a license. No application for a license shall be filed or received except in compliance with this Article.
Sec. 5-2.505. Application.
(a) Any person desiring to own or operate a casino shall submit a written application for a license with the City Clerk, under oath, setting forth the following information:
(1) Applicant's name, age, sex, present address, and addresses of all residences and descriptions of all occupations and businesses for the past five (5) years; (2) The name of the owner of the premises where the casino is to be operated and the name of his authorized agent, if any;
(3) The names, ages, addresses, occupations and businesses for the past five (5) years of persons having an interest, directly or indirectly, in applicant's business, whether as partners, directors, officers, joint ventures, lessees, holders of 10% or more of the stock, controlling persons, and the proposed casino operator.
(b) A licensee may request renewal of a license making an application as set forth in this Article.
Sec. 5-2.506. Fees.
An application fee shall be paid when the application is filed in an amount established by resolution of the City Council.
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Sec. 5-2.507. Investigation.
The City Clerk shall forthwith transmit the application under this Article to the Office of the Chief of Police for investigation and report. The application and report shall be presented for presentation to the City Council with the Chief's report.
Sec. 5-2.508. Public Hearing.
The City Council shall conduct a public hearing with at least two weeks' prior published and posted notice to consider each application for a license. The applicant shall be present and may present testimony under oath and documentary evidence. Any interested person may also present testimony under oath and documentary evidence.
Sec. 5-2.509. Findings and Decision.
The City Council shall adopt written findings and a decision for each application within thirty (30) days after the public hearing on the application. Approved licenses shall comply with the requirements of this Article.
Sec. 5-2.510. License Conditions.
(a) Each licensee and all persons identified in the application shall be of good moral character. (b) Each license shall be subject to at least the following requirements:
(1) Licenses are valid for a period of one year from the date of issuance. (2) Except as provided below, a license shall not be transferred to any other party without the consent of the Council.
(3) A license may be transferred by operation of law to a receiver or assignee for benefit of creditor or to an executor, administrator, guardian, heir or devisee. Before continuing business, such receiver, assignee, guardian, administrator, executor, heir or devisee shall file a statement with the City Clerk addressed to the Council setting forth the facts and circumstances showing such person is the lawful successor to the rights of the licensee.
Sec. 5-2.511. License Revocation or Suspension.
(a) A license issued under this Article may be revoked or suspended on the following grounds:
(1) Material misstatement of fact in the application;
(2) Failure to satisfy license conditions;
(3) The licensee's conviction of a serious crime of moral turpitude; (4) Attempt to transfer without permission of the City; (5) Failure to pay fees in a timely manner; or
(6) Failure to comply with any provision of this Article. (b) The City Manager shall provide the licensee of written notice setting forth the grounds for revocation or suspension and giving the licensee at least 30 days opportunity to respond. The City Manager shall consider the licensee's response (or lack of response) before taking action. (c) The licensee may appeal the City Manager's decision to the City Council by filing a written notice of appeal within 10 days of the City Manager's decision. The City Council shall conduct a public hearing to consider an Created: 2022-05-13 14:23:13 [EST]
(Supp. No. 10)
appeal by the licensee. The City Council shall use administrative rules of evidence. The decision of the City Council shall be final.
Sec. 5-2.512. Public Nuisance.
Operating or owning a casino without a license is a public nuisance. The City Attorney shall abate such nuisance.
Sec. 5-2.513. Force and Effect.
If any provision of this Article is held to be unenforceable by a court of competent jurisdiction, any license issued pursuant to this Article shall be suspended until a lawful measure is enacted.
CHAPTER 3. PUBLIC PROPERTY
ARTICLE 1. PARADES
Sec. 5-3.101. Permits: Required.
No person shall organize, hold, or participate in a parade on a City street without first obtaining a permit as set forth in this Article. For the purposes of this Article, "parade" means an organized formation or procession of persons or vehicles, or both.
Sec. 5-3.102. Permits: Applications: Forms.
(a) The permit required by this Article shall be requested by a written application upon a form prepared by the City Clerk. The application shall set forth the following information:
(1) The name of the person desiring the permit;
(2) The time and place, including the route and termini, of the parade; and (3) The approximate or estimated number of persons and vehicles which will participate. (b) The application shall be filed with the City Manager.
Sec. 5-3.103. Permits: Denial.
No permit for a parade shall be denied because of the danger of a riot or a breach of the peace, property damage, or other disorderly or unlawful conduct unless evidence is shown or presented to the City Manager of facts to support proof of such danger. No application shall be denied without a notice to the applicant of the time of a hearing by the City Manager.
ARTICLE 2. LOITERING
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Sec. 5-3.201. Curfew.
(a) No person under the age of eighteen years shall be on a public street, lane, alley, public park, playground or other public grounds, public places and public buildings or vacant lots, either on foot or in a vehicle, between the hours of 10:00 p.m. and 5:00 a.m. of the following day, unless the minor is:
(1) Accompanied by a parent, guardian or other adult person having custody or charge of said minor; or (2) At a legitimate place of business, trade, profession or occupation at which the minor is employed; or (3) At a public library, night class, study hall, school activity, place of worship or teen center supervised or sponsored by adults of good moral character; or
(4) On the streets going directly to or returning directly from any of the places mentioned above. (5) Engaged in lawful First Amendment activities.
(b) It is unlawful for any parent, guardian or other adult person having care, custody or control of a minor under the age of eighteen years to permit such minor to violate this section.
ARTICLE 3. CHARITABLE SOLICITING
Sec. 5-3.301. Charitable Solicitations: Permits Required. (a) No person shall solicit contributions for charitable purposes unless such solicitor exhibits a permit from the City.
(b) No person shall solicit in a City building or other public building within the City.
ARTICLE 4. VENDING ON PUBLIC PROPERTY
Sec. 5-3.401. Sales Locations Restricted.
No person shall sell goods on a public street, highway, road, alley or sidewalk within the City.
ARTICLE 5. TAXI FRANCHISES
Sec. 5-3.501. Franchise Required.
No person shall maintain or operate a taxi service without a franchise from the City.
Sec. 5-3.502. Application for Franchise.
(a) A person who desires to obtain a taxi franchise shall make application to the City Manager. The application shall contain the information required by the City Manager to determine whether the franchisee will comply with this Article including the following:
(1) Name, address and telephone number;
(2) Type of franchise;
(3) Proposed service area;
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(4) Plan for providing service;
(5) Evidence the franchisee is capable of implementing the plan for services; (6) Applicant's agreement to comply with the terms of this Article. (b) The City Manager shall prepare a report and make a recommendation on the application.
Sec. 5-3.503. Hearing.
(a) The Council shall consider the report and recommendation of the City Manager at a duly noticed public hearing conducted within thirty (30) days after the date of the report. The hearing shall be preceded by ten (10) days' prior mailed notice to the applicant and by notice published at least once, at least ten (10) days before the hearing. The Council shall receive the testimony of interested persons at the hearing. The hearing may be continued from time to time.
(b) The Council shall render its decision on the application at the conclusion of the hearing. The Council's decision shall be set forth in an ordinance and shall be final when the ordinance is adopted and effective. (c) The franchise shall be accepted in writing after the first reading of the ordinance and before adoption of the ordinance.
Sec. 5-3.504. Transfer of Franchise.
(a) A franchise may not be transferred by operation of law. A franchise may be transferred with the approval of the Council upon showing the transferee would be eligible to obtain a franchise in the first instance. (b) A franchisee who desires to transfer a franchise shall make application to the City Manager. The application shall include the written agreement of the transferee to be bound by the terms and conditions of the franchise. The City Manager shall prepare a report and recommendation on the application. The Council shall review the City Manager's report and recommendation.
(c) The Council shall set forth its decision on the application in a resolution. The Council's decision shall be final when the resolution is adopted and effective.
Sec. 5-3.505. Termination.
(a) A franchise is terminated when: it expires by its term; the franchisee voluntarily abandons the franchise; or the franchisee violates the terms and conditions of the franchise. (b) The City Manager shall provide the franchisee at least ten (10) days' prior written notice of intent to terminate the franchise. The notice shall state the reasons for terminating the franchise. (c) Except when the franchise has terminated by its terms, the franchisee may contest the City Manager's determination by filing a written appeal with the City Manager within ten (10) days of the date of the notice.
When the franchise has terminated by its terms, the franchisee may request renewal of the franchise by filing an application for a franchise. The City Manager shall file a report and recommendation with the Council concerning each proposed termination for which a request for hearing has been filed. If no request for hearing is filed, the City Manager's decision is final. (d) The Council shall consider the City Manager's report and recommendation at a duly noticed public hearing if written appeal has been filed with the City Manager. The hearing shall be preceded by at least ten (10) days' prior written notice to the franchisee and notice published once ten (10) days before the hearing. The Council shall render its decision at the conclusion of the hearing. The Council's decision shall be set forth in an ordinance and shall be final when the ordinance is adopted and effective.
Created: 2022-05-13 14:23:14 [EST]
(Supp. No. 10)
Sec. 5-3.506. Limitations.
(a) A taxi franchise is nonexclusive.
(b) No privilege or exemption shall be granted or conferred by any franchise except as specifically prescribed in this Article.
(c) A privilege claimed under a franchise by the franchisee in any street or public property shall be subordinate to any prior lawful occupancy of the streets or public property. (d) Time shall be of the essence of the franchise. The franchisee shall not be relieved of the obligation to comply promptly with this Article or by any failure of the City to enforce prompt compliance. (e) The franchisee shall have no recourse against the City for loss, cost, expense, or damage arising out of this Article or of franchise, or because of the enforcement of this Article. (f) The franchisee shall be subject to laws, rules, regulations, and specifications. (g) No person, firm or corporation in the existing service area of the franchisee shall be arbitrarily refused service. The franchisee shall not be required to provide service to a customer who does not pay the applicable fee or monthly service charge.
(h) The Council shall impose additional terms and conditions for the granting of a franchise necessary to implement this Article.
Sec. 5-3.507. Franchise Fees.
(a) Franchise fees shall be established from time-to-time by the Council by resolution and shall be calculated and paid as set forth herein.
(b) The franchisee shall file with the City, within thirty (30) days after the expiration of a calendar year, or portion, during which such franchise is in force, a financial statement prepared by a certified public accountant, or person otherwise satisfactory to the Council, showing in detail the gross annual receipts of the franchisee during the preceding calendar year, or portion thereof. The franchisee will pay to the City, within fifteen (15) days after the time for filing such statements, the sum set forth in this section, or unpaid balance, for the calendar year, or portion thereof, covered by such statements. (c) The City may inspect the franchisee's records showing the gross receipts from which its franchise payments are computed and the right of audit and recalculation of any and all amounts paid. No acceptance of payment shall be construed as a release or as an accord and satisfaction of claims the City may have for further or additional sums.
(d) When holding over after the expiration or other termination of a franchise without the consent of the City, the franchisee shall pay to the City reasonable compensation and damages of not less than 100% of the franchisee's total gross profits during such period.
Sec. 5-3.508. Taxi Rates.
(a) No rate, fee or charge shall be levied or collected for taxi service except in compliance with this section. (b) The franchisee shall submit proposed rates for taxi service to the Finance Director. The Finance Director shall cause a notice to be published of the proposed rates. The rates are effective ten (10) days after publication. (c) The approved rates shall be posted within each taxicab at a location visible to passengers. (d) The franchisee shall not charge more than the approved rates, but may charge less.
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(Supp. No. 10)
Sec. 5-3.509. Taxicabs.
(a) Each vehicle used for taxi service by the franchisee shall be maintained at all times in a mechanically-safe and clean condition. Each vehicle shall include: an exterior display signifying that it is a franchised taxicab, and an instrument or device by which the charge for use of the vehicle is calculated and registered and upon which such charge is indicated by means of figures visible to the passengers. Each vehicle shall be insured against liability for personal injury in a minimum amount from time-to-time determined by the Police Chief. The franchisee shall cause the City to be named as an added insured on such policy. (b) Prior to commencement of service, the franchisee shall obtain a certificate from the Chief of Police that each vehicle to be used for taxi service has complied with this section. A certificate shall also be obtained each time the franchisee proposes to substitute or add a new vehicle to provide taxi service. (c) The Chief of Police shall prepare forms to be used by the franchisee to apply for the certificate. The application form shall provide such information as the Chief of Police deems necessary to determine the vehicle satisfies the requirements of this Article.
(d) If, after review of the application and inspection of the vehicle, the Chief finds the application and vehicle comply with the requirements of this Article, the Chief shall forward a recommendation to the Council for action.
(e) Each vehicle shall be inspected at least annually, after any accident, and may be inspected more frequently as necessary to assure compliance with this Article.
Sec. 5-3.510. Taxicab Drivers.
(a) The franchisee shall not engage any person to operate or drive a vehicle to be used for taxi service unless the driver is duly licensed and qualified to carry passengers. A driver who has been convicted of a crime involving moral turpitude, including, but not limited to, using, possessing, selling or transporting any controlled substance or dangerous drug, or who has been convicted of driving under the influence of alcohol or drugs within three (3) years of the application, or who has been convicted of reckless driving within two (2) years of the application, shall be presumed not qualified to operate a taxi within the City. (b) Prior to commencement of service, each driver engaged by the franchisee to drive a vehicle to be used for taxi service shall obtain a certificate from the Chief of Police the driver has complied with this section. The certificate shall also be obtained each time the franchisee proposes to substitute or add a new driver to provide taxi service.
(c) The Chief shall prepare forms to be used to apply for a driver's certificate. The application form shall provide such information as the Chief deems necessary to determine the driver satisfies the requirements of this Article.
(d) If, after review of the application and the applicant's driver's record, the Chief determines the application and the driver comply with the requirements of this Article, the Chief shall issue a certificate to the driver. (e) Each driver's certificate shall be reviewed at least annually, after any accident, and more frequently as necessary to assure compliance with this Article.
Sec. 5-3.511. Operations.
(a) Every vehicle used for taxi service shall display the following in a place visible from the passenger's compartment: a notice showing the name of the franchisee; the certificate issued by the Chief of Police under this Article for the vehicle and for the driver; and the rate schedule approved by the Council.
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(b) The driver shall take the most direct route possible that will carry the passenger safely and expeditiously to their destination unless specifically directed otherwise by the passengers. (c) When a vehicle is engaged, the passengers have the exclusive right to full and free use of the passenger compartment and no additional passengers shall be solicited or carried therein, without the consent of the existing passengers.
(d) Any passenger who refuses to pay the fare upon arrival at the passenger's destination, shall be guilty of an infraction.
Sec. 5-3.512. Taxi Stands.
The franchisee shall secure an encroachment permit from the Director of Public Works before establishing any fixed points of departure within the City. As used herein, a fixed point of departure for taxi service is also known as a "taxi stand." The City Manager may issue an encroachment permit as to any state highway within the City provided that this Code is first approved in writing by the California Department of Transportation.
CHAPTER 4. PUBLIC AND PRIVATE PROPERTY2
ARTICLE 1. SPECIAL EVENTS
Sec. 5-4.101. Purpose.
This chapter regulates the establishment, operation and cleanup of special events.
Sec. 5-4.102. Permits Required.
(a) No person or entity shall operate, maintain, conduct, advertise or provide admission for a special event without a permit issued by the City Manager. As used herein, a "special event" means a carnival, community celebration, off-road vehicle race, outdoor festival, music event, sporting event, fair, animal race, religious festival, revival meeting, block parties, and similar public gatherings with expected attendance of at least three hundred (300) persons.
(b) A special event conducted without the required permit(s) is subject to closure at any time during the event.
The promoter, business owner or landowner may be subject to cost recovery by the agencies participating in the closure.
(c) When special events have received a land use approval by a federal or state agency, including, but not limited to, the Bureau of Land Management and the U. S. Forest Service and such is properly certified to the City Manager, the City Manager may, limit or waive the provisions of this Article adequately controlled by such federal or state agency.
Sec. 5-4.103. Application.
(a) At least thirty (30) days prior to the scheduled special event, the applicant shall apply for a permit under this Article and shall supply such information as the City Manager may reasonably require about the location, intensity and level of services required.
2 Editor's note(s)—Ord. No. 03-605, adopted on Feb. 4, 2003, added Ch. 4 Created: 2022-05-13 14:23:14 [EST]
(Supp. No. 10)
(b) The application shall be accompanied by an application fee in an amount established by the Council by resolution.
Sec. 5-4.104. Application Review.
(a) The City Manager shall review the application and consult with the Police Chief and Fire Chief. (b) The City Manager shall take into consideration relevant information, including, but not limited to, the following:
(1) The event site(s) and provisions for adequate ingress/egress and adequate parking; (2) The impact on adjacent properties;
(3) An applicant's request to play or broadcast music, especially between the hours of 10:00 p.m. and 7:00 a.m., in view of the proximity to the nearest residence, business or other occupied land use, the topography of the site and surrounding area, and the time limits such music is proposed to be played; (4) Topographical and ecological considerations;
(5) Electrical illumination requirements;
(6) Inclement weather contingencies;
(7) Water facilities;
(8) Food concessions;
(9) Sanitation facilities;
(10) Medical/first aid facilities;
(11) Overnight camping problems;
(12) Bonding and insurance requirements;
(13) Fire protection, including location of fire hydrants and supplemental water sources; (14) Communication, including temporary or additional telephones and an adequate public address system; (15) Adequate office space(s) and communication equipment for all regulatory personnel on site by the permit holder;
(16) Cleanup trash disposal;
(17) Restoration of landscape;
(18) Final accounting procedures, billings and/or reimbursement; and (19) The recommendation of City Police Department.
(c) The Chief of Police shall provide a written recommendation to the City Manager within ten (10) days of receipt of the application. The Police Chief shall take into consideration relevant information including, but not limited to the following:
(1) The applicant's previous relevant experience and background; (2) Provisions for special access way(s) for emergency vehicles; (3) Police protection;
(4) Crowd control measures;
(5) Control of alcoholic beverages and dangerous substances; Created: 2022-05-13 14:23:14 [EST]
(Supp. No. 10)
(6) Emergency evacuation procedures; and
(7) News releases.
The Chief of Police may recommend denial of the application if:
(1) Information contained in the application, or supplemental information requested from the applicant is found to be false in any material detail; or
(2) Another special event permit application has been received prior in time, or has already been approved, to hold another event at the same time and place requested by the applicant, or so close in time and place as to cause undue traffic congestion, or the City Police Department is unable to meet the needs for law enforcement services for both events; or (3) The time, route or size of the event will substantially interrupt the safe and orderly movement of traffic contiguous to the event site or route, or disrupt the use of a street at a time when it is usually subject to great traffic congestion; or
(4) The concentration of persons, animals and vehicles at the site of the event or the assembly and disbanding areas around an event will prevent proper law enforcement, fire, paramedic or ambulance services to areas contiguous to the event; or
(5) The size of the event will require diversion of so great a number of City police personnel to ensure participants stay within the boundaries or route of the event, or to protect participants in the event, as to prevent normal protection to the rest of the City. Nothing herein authorizes a recommendation to deny a permit because of the need to protect participants from the conduct of others if reasonable permit conditions can be imposed to allow for adequate protection of event participants with the number of law enforcement officers available to police the event; or (6) The location of the event will substantially interfere with any construction or maintenance work scheduled to take place upon or along the City streets, or a previously granted encroachment permit; or
(7) The event shall occur at a time when a school is in session at a route or location adjacent to the school or class thereof, and the noise created by the activities of the event would substantially disrupt the educational activities of the school or class thereof.
When the grounds for recommending denial of an application for permit specified in subsections (2) through (7) above can be corrected by altering the date, time, duration, route or location of the event, the Chief of Police shall conditionally recommend approval of the application upon the applicant's acceptance of conditions for permit issuance. The conditions imposed shall provide for only such modification of the applicant's proposed event as necessary to achieve compliance with subsections (2) through (7) above.
Sec. 5-4.105. Appeals.
The decision made of the City Manager may be appealed to the City Council in accordance with Title 1, Chapter 4.
(Ord. No. 07-656, 12-4-2007)
Sec. 5-4.106. Permits: Conditions.
Every permit issued pursuant to this Article shall include at least the following conditions:
(a) Permit is not transferable;
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(b) The permit shall be conspicuously posted upon the premises of the special event in a manner prescribed by the City Manager;
(c) If the Chief of Police determines the event will endanger the public peace, welfare, health or safety unless the applicant obtains extra police protection, extra police protection shall be a condition for the issuance of a permit and shall be at applicant's expense; (d) The permit shall expire on a date certain.
(e) Liability insurance naming the City, its officers, employees, agents, employees and volunteers as additional named insureds in amounts sufficient to protect, defend and indemnify the City, its officers, employees, agents, servants and volunteers from losses, claims, liability, injury and damage arising out of, or connected to, the special event.
(f) A permit fee shall be paid in an amount established by the Council. A bond, posted prior to the event, to ensure conditions are met, including cleanup and restoration of landscape.
Sec. 5-4.107. Permit: Grounds for Suspension or Revocation. (a) The City Manager may suspend a permit issued pursuant to this Article based upon reasonable causes, which may include the following:
(1) Nonpayment of permit fees;
(2) Violation of permit conditions;
(3) Violation of law;
(4) Disorderly conduct or use of dangerous substances occasioned by the operation of the special event; or (5) Information contained in the application, or supplemental information requested from the applicant is found to be false in any material detail.
(6) Transferring permit to any other person, organization, place, date and time. (b) The Police Chief may summarily suspend a special event permit if the operation of the event constitutes an immediate public health or safety hazard. At the time of suspension, the Chief of Police shall issue a written notice to the permit holder (with a copy to the City Manager) stating the grounds for the suspension and notifying the permit holder of the right to a hearing on the suspension. The City Manager shall render a decision at the conclusion of the hearing. The City Manager may continue the suspension in effect until the grounds for suspension no longer exist.
(c) The City Manager shall commence revocation proceedings by mailing a notice not less than ten (10) days prior to the date set for hearing, informing the permit holder of the causes for revocation, and the time and place at which the revocation matter will be heard. If the revocation notice is given on or within twenty-five (25) days of the start date of the event, the City Manager shall take reasonable steps to expedite the hearing process. The City Manager shall render a decision at the conclusion of the hearing. If an urgent situation exists relative to the public health, safety or welfare for a specific event, the revocation may be effective immediately.
ARTICLE 2. PARTIES AND UNRULY GATHERINGS
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Sec. 5-4.201. Purpose.
Parties or gatherings at private residences within the City may, on occasion, disturb the public peace, safety and welfare and require law enforcement services over and above those normally provided. The City shall require those persons utilizing or requiring law enforcement services beyond those provided to the public-at-large to defray the City's expense for providing the service.
Sec. 5-4.202. No Admission Charge.
No person shall charge admission to a party in any residential zone. As used herein, "charge admission" means the demand and receipt of a tangible benefit, monetary or otherwise, which is a motivating influence for admission to a party. Non-commercial activity, such as gifts by guests, sharing of expenses for food and beverages, or reciprocal hospitality shall not be considered to be an admission charge. "Charge admission" does not include a donation for religious, charitable, civic, or political purposes. As used herein, "party" means five (5) or more persons meeting together for social, recreational or amusement purposes.
Sec. 5-4.203. Cost Reimbursement for Police Services.
(a) The person or persons responsible for an unruly party or gathering or on whose property the unruly party or gathering is held, or if such person is a minor, then the parents or legal guardians of the minor, shall be jointly and severally liable for the following costs attributable to the event. (b) The actual cost of law enforcement services beyond the initial response by the officer necessary to abate the conditions. The Police Department shall accurately compute the cost of providing such services and advise the City Manager of such costs, as well as any other costs of damage to public property or injuries to personnel resulting from the law enforcement response. The person responsible for the event shall be billed for these costs by the City Manager upon notice of the charges from the City Police Department and payment shall be due and payable within fifteen (15) days of the billing date. Should the amount due not be paid, the City may collect the debt, as well as any costs incurred in collecting the debt due to nonpayment, pursuant to any available provision of law.
CHAPTER 5. DAYTIME CURFEW3
Sec. 5-5.101. Daytime Curfew.
(a) No juvenile subject to compulsory education or compulsory continuation education shall be in or upon a public street, alley, park, playground, public ground, public place, public building, place of amusement, any establishment or vacant lot during the hours of 8:30 a.m. to 1:30 p.m. on days when the juvenile's school is in session.
(b) This provision shall not apply to a juvenile who is:
(1) Accompanied by a parent or guardian;
(2) On an emergency errand directed by a parent or guardian; (3) Going or coming directly to or from a place of gainful employment or to or from a medical employment;
3 Editor's note(s)—Ord. No. 10-693, adopted on Dec. 21, 2010, added Ch. 5.
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(4) Who has permission to leave the school campus for lunch or other school related activity and has in possession a valid proof of permission is such proof of permission is required; (5) If exempted from compulsory education or compulsory continuation education from private or public school;
(6) Authorized to be absent from school pursuant to Education Code Sections 48205, 48222, or 48224, or other applicable state or federal law authorizing private schooling or private schooling at home; (7) Exercising First Amendment rights protected by the United States Constitution; or (8) Emancipated pursuant to law.
Sec. 5-5.102. Parental responsibility.
The parent or guardian of a juvenile shall not knowingly permit or exercise sufficient control to prevent the juvenile from violating this Article.
Sec. 5-5.103. Enforcement.
(a) A peace officer may issue a citation to the juvenile, parent or guardian found to be in violation of this Article and may detain a juvenile until the juvenile can be replaced the care and custody of a parent or guardian. (b) Violation of this Article is punishable as a misdemeanor or by requiring the juvenile, parent or guardian to perform city or school approved work projects or community service not to exceed twenty (20) hours over a period of sixty (60) days in times other than the juvenile's hours of school attendance or the parent's or juvenile's hours of employment.
(c) The police department may file the first violation of this Article as an infraction. (d) Welfare and Institutions Code section 625.5 applies to this Article. A fee for the actual cost of administration and transportation services shall be paid by the juvenile, parent or guardian.
CHAPTER 6. REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.4 ARTICLE 1. GENERAL PROVISIONS
Sec. 5-6.101. Purpose and Intent.
Cannabis Businesses and Cannabis Dispensaries shall be permitted, in accordance with the criteria and procedures set forth in this code, upon application and approval of a regulatory permit pertaining to the operation of the facility. It is the purpose and intent of this Chapter to provide opportunities for cannabis businesses to operate in the City, while imposing regulations on the use of land to protect the City's neighborhoods, residents, and businesses from negative impacts. It is a further purpose and intent of this Chapter to regulate the cultivation, 4 Editor's note(s)—Ord. No. 18-766 , § 2, adopted August 28, 2018, repealed the former Ch. 6, §§ 5-6.101—5-6.104, 5-6.201, 5-6.301, 5-6.302, 5-6.401, 5-6.402, 5-6.501—5-6.505, 5-6.601—5-6.603, 5-6.701—5-6.704, 5-
6.801—5-6.805, 5-6.901—5-6.907, 5-6.1001, 5-6.1101, 5-6.1201, 5-6.1301, 5-6.1302, 5-6.1401—5-6.1406, 5-
6.1501—5-6.1504, and enacted a new Ch. 6 as set out herein. The former Ch. 6 pertained to similar subject matter and derived from Ord. No. 16-742, § 3, 9-13-2016 ; Ord. No. 16-743, § 1, 11-8-2016 ; Ord. No. 17-745, §§ 1—5, 3-28-2017 ; Ord. No. 17-757, §§ 1—4, 7, 11-28-2017 .
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manufacturing, processing, testing, transporting, delivery, dispensing, and distribution of cannabis and cannabisrelated products in a manner which is responsible, which protects the health, safety, and welfare of the residents of California City, and to enforce rules and regulations consistent with state law. In part to meet these objectives, an annual permit shall be required in order to own and/or to operate a cannabis business within California City.
Nothing in this Chapter is intended to authorize the possession, use, or provision of cannabis for purposes which violate state or federal law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under state, county or other law.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.102. Legal Authority; Application of this Chapter to Cannabis Dispensaries. (a) Pursuant to Sections 5 and 7 of Article XI of the California Constitution, and the provisions of the "Medicinal and Adult-Use Cannabis Regulation and Safety Act" ("MAUCRSA") (and as the same may be amended from time to time), the City of California City is authorized to adopt ordinances that establish standards, requirements and regulations for local licenses and permits for cannabis and cannabis-related activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City of California City to cannabis, and/or cannabis-related activity. (b) All provisions of this Chapter shall apply to both Cannabis Businesses and Cannabis Dispensaries, except for the provisions specifically addressing Cannabis Dispensaries set forth in this Chapter, in which case the specific provisions related to Cannabis Dispensaries will control. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.103. Cannabis Cultivation and Cannabis Business Activities Prohibited Unless Specifically Authorized by This Chapter.
Except as specifically authorized in this Chapter, the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, dispensing, distribution, delivery, or sale of cannabis or a cannabis product is expressly prohibited in the City of California City. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.104. Compliance with Laws.
It is the responsibility of the owners and operators of the cannabis business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder, and any specific additional operating procedures or requirements which may be imposed as conditions of approval of the cannabis business permit. Nothing in this Chapter shall be construed as authorizing any actions which violate federal, state law or local law with respect to the operation of a cannabis business. ( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 2. DEFINITIONS
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Sec. 5-6.201. Words and Terms Defined.
When used in this Chapter, the following words shall have the meanings ascribed to them as set forth herein.
Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. (a) "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. (b) "Cannabis business activity" includes cultivation, manufacture, processing, laboratory testing, transporting, delivery, distribution, or sale of cannabis or a cannabis product, within the meaning of California Business and Professions Code 19300 et seq.
(c) "Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. An edible cannabis product is not considered food, as defined by Section 109935 of the California Health and Safety Code, or a drug, as defined by Section 109925 of the California Health and Safety Code. (d) "Cannabis Business" means the businesses of commercial cannabis cultivation, cannabis manufacturer, cannabis testing laboratory, and cannabis distributor.
(e) "Cannabis business permit" means a regulatory permit issued by the City of California City pursuant to this Chapter to a cannabis business and is required before any cannabis activity may be conducted in the City. The initial permit and annual renewal of a cannabis business permit is made expressly contingent upon the business' ongoing compliance with all of the requirements of this Chapter, any regulations adopted by the City governing the cannabis activity at issue, compliance with any conditions of approval placed on the use of the Cannabis Business site, and payment of all fees, taxes and any other amounts owed to the City related to the Cannabis Business Activity. (f) "Cannabis Dispensary Permit" means a regulatory permit issued by the City of California City pursuant to this Chapter to a cannabis dispensary and is required before any cannabis dispensing activity may be conducted in the City. The initial permit and annual renewal of a cannabis dispensary permit is made expressly contingent upon the business' ongoing compliance with all of the requirements of this Chapter, any regulations adopted by the City governing the cannabis activity at issue, compliance with any conditions of approval placed on the use of the Cannabis Dispensary site, and payment of all fees, taxes and any other amounts owed to the City related to the Cannabis dispensary activity. All provisions of this Chapter shall apply to both Cannabis Businesses permits and Cannabis Dispensary permits, except provisions for Cannabis Dispensary permits specifically set forth in this Chapter, in which case the specific provisions related to Cannabis Dispensary permits will control. (g) "Cannabis Distributor" means a Cannabis Operator permitted pursuant to this Chapter to operate a location or a facility where a Person conducts the business of procuring Cannabis from permitted Cannabis Cultivation Sites or Cannabis Manufacturers for sale to permitted Cannabis Dispensaries, and Created: 2022-05-13 14:23:14 [EST]
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the inspection, quality assurance, batch testing by a Type 8 licensee, storage, labeling, packaging and other processes prior to transport to permitted Cannabis Dispensaries. (h) "Cannabis License" means a State license issued pursuant to MAUCRSA, as may be amended from time to time.
(i) "Cannabis Licensee" means a person issued a Cannabis License under MAUCRSA to engage in commercial Cannabis activity.
(j) "Cannabis Nursery" means a location operating as a nursery solely for purposes of supplying immature plants to cannabis cultivation facilities.
(k) "Cannabis Operator" or "Operator" means the person or entity that is engaged in the conduct of any commercial Cannabis use.
(l) "Cannabis Testing Laboratory" means a facility, entity, or site in the State that offers or performs tests of Cannabis or Cannabis Products and is both of the following:
1. Accredited by an accrediting body that is independent from all other Persons involved in the Cannabis Testing Laboratory.
2. Registered with the California Department of Public Health. (m) “Ceases” means to no longer operate a cannabis business. A business will be considered to cease operating if it does not engage in sales, manufacturing, distribution, or other cannabis activity for five consecutive days, unless the operator can furnish proof that the business will return to activity within a reasonable period of time.
(m(n) "City" or "City of California City" means the City of California City, a California general law city. (no) "Cultivation" means any activity, whether occurring indoors or outdoors, involving the propagation, planting, growing, harvesting, drying, curing, grading, and/or trimming of cannabis plants or any part thereof for any purpose, including cannabis.
(op) "Cultivation site" means a facility where cannabis is cultivated, propagated, planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities, and where the operator holds a valid cannabis business permit for cultivation from the City of California City and, a valid state license for cultivation pursuant to the MAUCRSA (as the same may be amended from time to time).
(pq) "Delivery" means the commercial transfer of medical cannabis or medical cannabis products from a dispensary, up to an amount determined to be authorized by the State of California, or any of its departments or divisions, to anyone for any purpose. "Delivery" also includes the use by a dispensary of any technology platform owned, controlled, and/or licensed by the dispensary, or independently licensed by the State of California under the MAUCRSA (as the same may be amended from time-totime), that enables anyone to arrange for or facilitate the commercial transfer by a licensed dispensary of cannabis or cannabis products.
(qr) "Dispensary" means a cannabis business facility where cannabis, medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, medical cannabis and medical cannabis products as part of a retail sale, and where the operator holds a valid cannabis business permit from the City of California City authorizing the operation of a dispensary, and a valid state license as required by state law to operate a dispensary.
(rs) "Dispensing" means any activity involving the retail sale of cannabis or cannabis products from a dispensary.
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(st) "Distribution" means the procurement, sale, and transport of medical cannabis or cannabis products between cannabis businesses.
(tu) "Distributor" means a person holding a valid cannabis business permit for distribution issued by the City of California City, and a valid state license for distribution, pursuant to the MAUCRSA (as the same may be amended from time to time).
(uv) "Dried flower" means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(vw) "Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption. An edible medical cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the California Health and Safety Code.
(x) “Financial Interest” means an agreement to receive a portion of the profits of a commercial Cannabis Business, an investment into a Cannabis Business, a loan provided to a Cannabis Business, or any other equity interest in a Cannabis Business except as provided below. For the purpose of this subsection, an agreement to receive a portion of the profits includes, but is not limited to, the following individuals:
(1) An employee who has entered into a profit share plan with the Cannabis Business. (2) A landlord who has entered into a lease agreement with the Cannabis Business for a share of the profits.
(3) A consultant who is providing services to the Cannabis Business for a share of the profits. (4) A person acting as an agent, such as an accountant or attorney, for the Cannabis Business for a share of the profits.
(5) A broker who is engaging in activities for the Cannabis Business for a share of the profits. (6) A salesperson who earns a commission.
When an entity has a Financial Interest in a Cannabis Business, then all individuals who are Owners of that entity shall be considered Financial Interest holders of the Cannabis Business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust, and managing members or non-member managers of the entity. Each entity disclosed as having a Financial Interest must disclose the identities of persons holding Financial Interests until only individuals remain.
Notwithstanding the above, the following persons are not considered as having a “Financial Interest” for purposes of this Chapter.
(1) A bank or financial institution whose interest constitutes a loan; (2) Persons whose only financial interest in the Cannabis Business is through an interest in a diversified mutual fund, blind trust, or similar instrument; (3) Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the Cannabis Business; and
(4) Persons who hold a share of stock that is less than 5 percent of the total shares in a publicly traded company.
(w(y) "Indoor structure" means a fully enclosed and secured structure, a space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, Created: 2022-05-13 14:23:14 [EST]
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complies with all odor control and other design standards required by this chapter, and which is accessible only through one or more lockable doors and is inaccessible to minors. (xz) "Indoors" means within a fully enclosed and secure structure. The term indoors includes any indoor structures.
(yaa) "Live plants" means living cannabis flowers and plants, including seeds, sprouts, immature plants (including unrooted clones), and vegetative stage plants. (zbb) "Manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, as defined in this section, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container, where the operator holds a valid cannabis business permit for manufacturing from the City of California City and a valid state license for manufacturing pursuant to the MAUCRSA (as the same may be amended from time to time).
(aacc) "Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate or manufactured product intended for internal consumption or topical application.
(bbdd) "Manufacturing site" means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid Cannabis business permit for manufacturing from the City of California City, and a valid state license for manufacturing pursuant to the MAUCRSA (as the same may be amended from time to time).
(ccee) "Marijuana" means "cannabis," as that term is defined in this Chapter. (ff) “Operator” means any and all persons who are responsible for and/or involved in the operation and/or day to day management of the Cannabis Business, including, but not limited to, employees, volunteers, managers, supervisors, contractors, subcontractors, agents, etc. (dd(gg) "Outdoors" means any location within the City that is not within a fully enclosed and secure structure.
(eehh) "Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number. (ii) “Owner” means any of the following: (1) A person with an aggregate ownership interest of 20 percent or more of the cannabis business, unless the interest is solely a security, lien, or encumbrance; (2) The chief executive officer of a nonprofit or other entity; (3) A member of the board of directors of a nonprofit; (4) The trustee(s) and all persons who have control of the trust and/or the cannabis business that is held in trust; (5) An individual entitled to a share of at least 20 percent of the profits of the cannabis business; and (6) An individual who will be participating in the direction, control, or management of the cannabis business, including (A) A general partner of a cannabis business that is organized as a partnership; (B) A non-member manager or managing member of a cannabis business that is organized as a limited liability company; (C) An officer or director of a cannabis business that is organized as a corporation.
(ff(jj) "State license" means a permit or license issued by the State of California, or one of its departments or divisions, pursuant to Sections 5 and 7 of Article XI of the California Constitution, and the provisions of the "Medicinal and Adult-Use Cannabis Regulation and Safety Act" ("MAUCRSA") (as the same may be amended from time to time) to engage in cannabis activity.
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(ggkk) "Topical cannabis" means a product intended for external use. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code. (hhll) "Transport" means the transfer of cannabis or cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting cannabis activity authorized by the MAUCRSA (as the same may be amended from time to time). (iimm) "Transporter" means a person issued a state license, and a cannabis business permit by the City of California City, authorizing the transport of cannabis or cannabis products in amounts authorized by the State of California, or by one of its departments or divisions under the MCRSA. ( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 3. CANNABIS BUSINESS PERMITS REQUIRED FOR OWNER/OPERATOR;
CANNABIS WORK PERMIT REQUIRED FOR EMPLOYEES
Sec. 5-6.301. Cannabis business Permit Required to Engage in Cannabis business.
No person may engage in any cannabis business or operate a cannabis dispensary within the City of California City including cultivation, manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of cannabis or a cannabis product unless the person (1) has a valid cannabis business permit or cannabis dispensary permit from the City of California City and (2) is currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis business and the cannabis business activities, including the duty to obtain any required state licenses. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.302. Cannabis Business Employee Permit Required. (a) Any person who is an employee or who otherwise works or volunteers within a cannabis business must be legally authorized to do so under applicable state law. (b) Any person who is an employee or who otherwise works or volunteers within a cannabis business shall must wear a name badge issued by the cannabis business management City for identification purposes. ( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 4. NUMBER AND TYPE OF AUTHORIZED CANNABIS DISPENSARIES
PERMITTED
Sec. 5-6.401. Maximum Number of Cannabis Dispensaries Permitted to Operate within the City.
(a) The maximum number of each type of cannabis dispensary that shall be permitted to operate in the City at any one (1) given time will be a maximum of two (2) retail storefront operations and ten (10) delivery only dispensaries with no retail storefront. Retail storefront dispensaries are also authorized, with the required state license, to make off-site deliveries.
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(b) Section 5-6.401 is only intended to create a maximum number of cannabis dispensaries that may be issued permits to operate in the City under each category. Nothing in this Chapter creates a mandate that the City Council must issue any or all of the cannabis business dispensary permits potentially available. ( Ord. No. 18-766, § 2, 8-28-2018 ; Ord. No. 19-771, § 2, 1-8-2019 ) ARTICLE 5. APPLICATION FOR CANNABIS BUSINESS PERMIT: RENEWAL APPLICATIONS; AND EFFECT OF REVOCATION OR SUSPENSION OF STATE LICENSE Sec. 5-6.501. Initial Application Procedure.
(a) Owners and Operators are required to verify the age and the necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years. The City Council shall adopt by resolution the procedures which will govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any cannabis business permit(s). The City Manager will prepare the necessary forms, adopt any necessary rules, regulations and processes, solicit applications, and conduct evaluations of the applicants. The application must include the following information:
(1) The name, address, and telephone number of the cannabis business permit applicants and licensees must use their legal business name on all documents related to commercial cannabis business. (2) The name, address and telephone number of the owner(s) and operator(s) applying for the cannabis business permit, along with a copy of an official, valid and unexpired government issued photo ID; (3) The name, address and telephone number and a copy of an official, valid and unexpired government issued photo ID for all individuals who have a financial interest in a cannabis businesses, but are not owners/operators, as defined. These individuals shall not be required to submit the other information required of owners/operators under the Chapter.
(4) The name and address of the owner(s) of the real property upon, in, or from which the cannabis business is to be operated. In the event the owner(s) are not the legal owner(s) of the real property, the application shall be accompanied by a copy of a written and signed lease between the owner(s) and the property owner authorizing use of the premises as a cannabis business, or, if no written lease exists, a written, notarized acknowledgement from the property owner(s) that he/she/they have been advised and agree that a cannabis business will be operated upon, in, or from the property; (5) Certification that the applicant, and any of the officers, directors, owners or operators of the cannabis business do not have:
a. A conviction for homicide.
b. A conviction for racketeering, including but not limited to, a conviction under the Racketeer Influenced and Corrupt Organizations Act, the Organized Crime Control Act of 1970, or any other state or federal law prohibiting organized crime.
c. A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance.
d. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. e. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code. f. A felony conviction involving fraud, deceit, or embezzlement.
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g. Within the preceding two (2) years, any felony conviction for burglary, including first- and/or second-degree burglary.
h. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. i. A felony conviction for drug trafficking with enhancements pursuant to H&S Code Sections 11370.4 or 11379.8.
j. Any conviction involving a gang enhancement pursuant to Penal Code Section 186.22. k. Within the preceding five (5) years, any violation of the Compassionate Use Act, the Medical Marijuana Program Act, the MAUCRSA, or any other State law or Constitutional provisions regulating Cannabis, as may be amended from time to time; l. Within the preceding ten (10) years, any violations of subdivision (c) or (d) of H&S Code Section 11357, or Section 11361, or any other provision involving sale to minors, and/or Articles 1, 3, 5, 6 or 7 of Chapter 6 of Division 10 of the H&S Code;
m. Within the preceding five (5) years, any conviction for possession, sale, use, distribution, and/or manufacturing of any Schedule I or Schedule II controlled substance as defined or described in the federal Controlled Substances Act;
n. Within the preceding three (3) years, any administrative orders or civil judgments for violations of labor standards.
(b) At the time of filing, each applicant shall pay an application fee established by resolution of the City Council, to cover all costs incurred by the City in the application process. An application shall not be deemed complete, and will not be processed, until the designated application fees have been paid. Once submitted, all fees shall be non-refundable.
(c) After the initial review the City Manager will issue permits for all cannabis businesses except for dispensaries.
For cannabis dispensary permits, the City Manager will make a recommendation to the City Council, and the City Council shall make a final determination in accordance with Article 7. (d) The City's Reservation of Rights: The City reserves the right to reject any or all applications. The City may also modify, postpone, or cancel any request for applications, or the entire program under this Chapter, at any time without liability, obligation, or commitment to any party, firm, or organization. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to any other appropriate reasons for rejection, including but not limited to a failure to comply with any requirement of any State or local law, rule or regulation, an application RISKS BEING REJECTED for any of the following reasons:
(1) Proposal not containing the required elements, exhibits, nor organized in the required format. (2) Proposal considered not fully responsive to this request for permit application. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.502. Expiration of Cannabis Business Permits.
Each cannabis business permit issued pursuant to this Chapter shall expire expires twelve (12) months after the date of its issuance, regardless of the operational status of the business. Cannabis Business permits may must be renewed as provided in Section 5-6.504.
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Sec. 5-6.503. Suspension and Revocation of Permits.
Cannabis Business permits may be revoked or suspended for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter. (i) Nothing in this section affects the authority of the Tax Administrator to revoke or refuse to renew a cannabis business’s business license pursuant to Section 3-2.3.2-1 and as authorized by Section 3-
2.8.200.
(ii) The City Manager has the authority to suspend a cannabis business permit for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter that the City Manager determines that violation is substantial
(iii) The City Manager has the authority to revoke a cannabis business permit for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter that the City Manager determines that the violation is significant.
(iv) In the event the City revokes a cannabis business license while cannabis goods remain on the premises, the former licensee must comply with Section 5-6.1101(b). (v) Factors for suspension or revocation. The City Manager may consider, but is not limited to, the following factors in deciding whether a permit should be suspended or revoked in accordance with this Chapter, as applicable:
(1) The nature and severity of the acts, offense, or crimes under consideration; (2) Any corrective action taken by the permittee;
(3) Prior violations at the permitted premises by the permittee and the effectiveness of prior corrective action;
(4) Previous sanctions imposed against the permittee;
(5) The number and/or variety of current violations;
(6) The likelihood of recurrence;
(7) All circumstances surrounding the violation;
(8) Whether the violation was willful;
(9) Any actual or potential harm to the public;
(10) The length of time the permit has been held by the permittee; (11) Evidence of expungement proceedings under California Penal Code § 1203.4; and (12) Any other factor that makes the situation unique or the violation of greater concern, with respect to the permittee or the permitted premises.
(vi) The City Manager also has the authority to suspend or revoke a cannabis business permit upon the following grounds:
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(B) Where the permittee, the commercial cannabis business and/or any owner, operator or any employee thereof has violated or is in violation of any applicable provisions of this Chapter, other applicable provisions of this code and/or any other applicable provision of state law; (C) Where a permit has been granted on false or fraudulent evidence, testimony, or application; or (D) Where the permittee, commercial cannabis business and/or any owner, manager or employee thereof has violated or is in violation of the terms and provisions of said permit. (vii) Hearing prior to suspension or revocation. No permit will be suspended or revoked, unless based on the suspension and/or revocation of a state license, until said permittee has had an opportunity for a hearing before the City Manager or their designee.
(viii) Written notice of the revocation or suspension, the reasons therefore and the requirement to request a hearing must be given by certified mail to a permittee’s last known mailing address or by such other method reasonably calculated to provide notice.
(ix) The revocation or suspension are final and effective after ten calendar days following the date of mailing set forth in section, unless the permittee files an application for a hearing with the City Clerk prior to such effective date. There are no cost to the permittee for such a hearing under this section. (x) Except as otherwise provided in this section, the hearing will be commenced within 30 calendar days of the filing of an application for hearing, unless the City and permittee agree otherwise. Hearings conducted pursuant to this section must be open to the public, must not be conducted according to the technical or traditional rules relating to evidence, and must provide, personally or by counsel or both, an opportunity for permittee to defend and present evidence on their behalf. At least ten calendar days prior to the hearing, permittee must be provided with any documentation upon which the revocation or suspension is based. Following the close of the hearing, the City Manager or their designee must within 30 days render a written decision. (xi) Notwithstanding the foregoing, the City Manager may suspend, pending a hearing, any cannabis business permit where it has been determined by thereby that an immediate suspension of the permit is necessary for the protection of the public health, safety, peace and welfare. In the event of such a suspension, the City Manager must, within 12 hours after said suspension, cause to be served upon said business or permittee a written statement containing the grounds for said suspension, any written documentation upon which the revocation is based and a notice of hearing to show cause before the City Manager or their designee why said permit should not be permanently revoked, which said hearing must be commenced no later than five calendar days following the service of said notice unless the parties thereto agree otherwise, and thereafter followed by a written decision pursuant to this section.
(xii) Following the hearing, or a waiver thereof by permittee, the City Manager or their designee may also modify and/or add conditions and/or requirements of the cannabis business permit in lieu of suspension or revocation.
(xiii) A suspension or revocation of a cannabis business permit may be appealed in accordance with Article
6. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.504. Renewal Applications.
(a) An application for renewal of a cannabis business permit shall must be filed at least sixty (60) calendar days prior to the expiration date of the current permit, regardless of the operational status of the business.
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(b) The applicant shall must pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter. Once submitted to the City all fees shall be are non-refundable. (c) An application for renewal of a cannabis business permit shall will be rejected if any of the following exists:
(1) The application is filed less than sixty (60) days before its expiration, unless good cause is shown for failure to timely apply as approved in the sole discretion of the City Manager. (2) The cannabis business permit is suspended or revoked at the time of the application. (3) The cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application.
(4) The cannabis business has failed to conform to the requirements of this Chapter, or of any regulations adopted pursuant to this Chapter.
(5) The permittee fails or is unable to renew its State of California license. (6) If the City or state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this Chapter, of the City's Municipal Code, or of the state rules and regulations, or of any term or condition of the permit, and the City or state has determined that the violation is grounds for termination or revocation of the cannabis business permit. (d) The City Manager or his designee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager or his designee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with newly adopted, repealed, or amended state or local laws and regulations, preserve the public health, safety or welfare.
Appeals from the decision of the City Manager or his designee shall must be handled pursuant to Article 6 of this Chapter.
(e) If a renewal application is rejected, a person an applicant may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.505. Effect of State or City License Suspension, Revocation, or Termination.
Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the City, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a cannabis business, such revocation or termination shall also revoke or terminate the ability of a cannabis business to operate within the City of California City.
Sec. 5-6.506. Prohibition on Transfer of Cannabis Business Permits. (a) No person shall operate a cannabis business at any location other than the location specifically authorized and identified on the City issued cannabis business permit. A permittee may request that the specifically authorized location identified on the City issued cannabis business permit be changed to another specifically authorized location that meets all zoning requirements, including but not limited to distances, for identified uses without the need to reapply for a new permit. The City Manager is authorized to make the final decision concerning the issuance of a change in location and reissue of the cannabis business permit for the new location.
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(b) Cannabis business permits issued through the grant of a transfer shall be valid for a period of one (1) year beginning on the day the City Manager approves the transfer of the permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit in the manner required by this chapter. (c) Changes in ownership of a permittee's business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 75% of the original ownership), must be approved by the City Council and executed by the City Manager through the transfer process set forth in this section. Failure to comply with this provision is grounds for permit revocation. (d) A permittee may change the form of business entity without applying to the City Manager for a transfer of permit, provided that either:
1. The membership of the new business entity is substantially similar to original permit holder business entity (at least 75% of the membership is identical), or
2. If the original permittee is a cooperative or collective and then transitions to a new business entity to comply with Section 5-6.301, subdivision (b), provided that the original operator(s) of the original permittee business are the same, and the only change is removing collective/cooperative members from the ownership of the new business entity.
Although a transfer is not required in these two circumstances, the permit holder is required to notify the City Manager in writing of the change within ten (10) days of the change. Failure to comply with this provision is grounds for permit revocation.
(e) No cannabis business permit may be transferred when the City Manager or Police Chief has notified the permittee that the permit has been or may be suspended or revoked. (f) Any attempt to transfer a cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.507. CEQA COMPLIANCE.
Any applicant for a cannabis business permit, and/or zoning or conditional use permit, as applicable, shall be responsible for all costs associated with the preparation of all initial studies, negative declarations, environmental impact reports and/or other environmental documents or studies, if any, including administrative costs, necessary for the approval of such cannabis business permit, zoning or conditional use permit, as applicable, or the establishment or operation of a cannabis business, as well as the costs associated with the City’s use of a third party reviewer to ensure application completeness.
ARTICLE 6. APPEALS
Sec. 5-6.601. Appeals from Decisions of the City Manager or his Designee under this Chapter.
Unless specifically provided elsewhere to the contrary, whenever an appeal is provided for in this Chapter from a decision of the City Manager or his or her designee, the appeal shall be conducted as prescribed in this Chapter.
( Ord. No. 18-766, § 2, 8-28-2018 )
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Sec. 5-6.602. Written request for Appeal.
(a) Within ten (10) calendar days after the date of a decision of the City Manager or his designee(s) to revoke, suspend or deny a permit, or to add conditions to a permit, an aggrieved party may appeal such action by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. (b) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the City Council from time to time.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.603. Appeal Hearing.
(a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council.
The City Council shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the City.
(b) The appeal shall be held within a reasonable time after the filing of the appeal, but in no event later than ninety (90) days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing.
(c) At the hearing the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. (d) At the conclusion of the hearing the City Council may affirm, reverse or modify the decision appealed. The decision of the City Council shall be final.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.604. Appeal of Administrative Fines.
Administrative fines issued pursuant to Sec. 5-6.1504 and Sec. 1-5.08 can be appealed by the process set out in Sec. 1-5.08.
ARTICLE 7. CANNABIS DISPENSARY PERMITTEE SELECTION PROCESS Sec. 5-6.701. Selection and Review of Finalists.
(a) The City Council shall adopt by resolution a procedure by which the applicants in each category of cannabis dispensary will be presented to the City Council for a final determination at a public meeting. (b) The top applicants in each category of cannabis dispensary that are selected for final consideration may be invited to attend the City Council meeting, where they will be expected to make a public presentation introducing their teams and providing an overview of their proposals. In order to provide adequate time, presentations may be divided over more than one meeting over multiple days as determined to be necessary.
(c) At least ten (10) days prior to the hearing, notice of the hearing shall be sent to all property owners located within three hundred (300) feet of the proposed dispensary locations of each of the finalists to be considered by the City Council.
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(d) The City Council shall rank the final candidates and shall select the top candidate in each category of cannabis dispensary, which candidate shall become the prevailing candidate. The City Council's decision as to the selection of the prevailing candidates shall be final. (e) Official issuance of the cannabis dispensary permit, however, is conditioned upon the prevailing candidate obtaining all required land use approvals. Following the Council's selection, the prevailing candidate shall apply to the City to obtain any required land use approvals or entitlements for the permittee's location, if any. Land use approvals shall comply with all applicable provisions of CEQA. The City Manager shall formally issue the cannabis dispensary permit once the City Manager and Building Department have both affirmed that all of the required land use approvals have been obtained. (f) Issuance of a cannabis dispensary permit does not create a land use entitlement. The cannabis dispensary permit will be for a term of twelve (12) months and shall expire at the end of the twelve (12) month period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, unless all of the state and local laws and regulations, including but not limited to the requirements of this Chapter and of the permit, have been complied with. (g) Notwithstanding anything in this Chapter to the contrary, the City Council reserves the right to reject any or all applications if it determines it would be in the best interest of the City, taking into account any health, safety and welfare impacts on the community. Applicants shall have no right to a cannabis dispensary permit until a permit is actually issued, and then only for the duration of the permit's term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the City Council may terminate or delay the program created under this Chapter.
(h) If an application is denied, a new application may not be filed for one (1) year from the date of the denial. (i) Each person granted a cannabis dispensary permit shall be required to pay the permit fee established by resolution of the City Council, to cover the costs of administering the cannabis business permit program created in this Chapter.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.702. Permits Issued to Back-up Applicants.
The City Council reserves the right at any time, in its sole discretion, to simply restart the selection process over.
Alternatively, within eighteen (18) months following the issuance of any cannabis dispensary permit, if any of the candidates chosen by the City Council to be permitted withdraws from the process or its application is terminated for any reason, the City Council may direct staff to determine whether the runner-up applicant (ranked next highest after those chosen for permitting in the same category) in that category, based on the final ranking of the finalist, still desires a permit. If the applicant still desires a permit, city staff shall proceed to hold a public hearing, which will include notice to surrounding property owners, to evaluate the runner-up candidate's application for potential issuance of a permit. The City will utilize the same process which was used for the applicants chosen to receive permits. Prior to the hearing, the runner-up applicant shall be required to complete any additional requirements, and to update any information from its original application, which the City Manager or his/her designee may determine is reasonably required to verify that the applicant still appropriately qualified and has met all requirements. The City Council shall then hold the public hearing and make a determination whether a permit should be issued to the runner-up applicant or be denied. If the Council determines a permit should be issued, the applicant shall be required to follow the same process for land use and zoning approvals, before a permit will officially be issued.
Notwithstanding the foregoing, the City shall have no obligation to offer the permit to the runner-up applicant if an applicant has withdrawn its application, or if the Council finds, based on substantial evidence that - Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 8. REQUIREMENTS BEFORE PERMITTEE MAY COMMENCE OPERATIONS California City, California, Code of Ordinances Created: 2022-05-13 14:23:15 14:23:14 [EST] (Supp. No. 10)
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the applicant no longer qualifies, is in violation of state or local laws or regulations, or that it would not be in the community's best interest to grant the permit as a result of impacts on the community's health, safety or welfare. ( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 8. REQUIREMENTS BEFORE PERMITTEE MAY COMMENCE OPERATIONS Sec. 5-6.801. City Business License.
Prior to commencement of operations a cannabis business shall obtain a City of California City business license.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.802. Building Permits and Inspection.
Prior to commencement of operations a cannabis business shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), fire department approvals, Health Department approvals and other zoning and land use permit(s) and approvals confirming that the business and building complies with the Building Code and Fire Code and all other applicable provisions of the California City Municipal Code and State law. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.803. Certification from Building Department.
Prior to commencing operations, a cannabis business must obtain a certification from the City Manager certifying that the business is located on a site that meets all of the requirements of the City's Zoning and Municipal Code, including Title 9, Chapter 2, Article 29 (Cannabis businesses). ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.804. Right to Occupy and to Use Property.
As a condition precedent to the City's issuance of a cannabis business permit pursuant to this Chapter, any person intending to open and to operate a cannabis business shall provide sufficient evidence of the legal right to occupy and to use the proposed location. In the event the proposed location will be leased from another person, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this Chapter and consents to the operation of the cannabis business on the owner's property.
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( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.805. Limitations on City's Liability.
To the fullest extent permitted by law, the City of California City shall not assume any liability whatsoever with respect to having issued a cannabis business permit pursuant to this Chapter or otherwise approving the operation of any cannabis business. As a condition to the approval of any cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the cannabis business permit:
(a) They must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the City of California City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City's issuance of the cannabis business permit, the City's decision to approve the operation of the cannabis business or activity, the process used by the City in making its decision, the alleged violation of any federal, state or local laws by the cannabis business or any of its officers, employees or agents. (b) Maintain insurance at coverage limits, and in the minimum amount of $1 million per claim and $2 million in the aggregate naming the City as an additional insured on all City-required insurance policies with conditions thereon determined necessary and appropriate from time to time by the City Attorney. (c) Reimburse the City of California City for all costs and expenses, including but not limited to attorney fees and costs and court costs, which the City of California City may be required to pay as a result of any legal challenge related to the City's approval of the applicant's cannabis business permit, or related to the City's approval of a cannabis activity. The City of California City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.
ARTICLE 9. OPERATING REQUIREMENTS FOR ALL CANNABIS BUSINESSES
PERMITTED UNDER THIS CHAPTER
Sec. 5-6.901. Records and Recordkeeping.
(a) Each owner and operator of a cannabis business shall must maintain accurate books and records, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City, each cannabis business shall must file a sworn statement detailing the number of sales by the cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall must also include gross sales for each month, and all applicable taxes paid or due to be paid. (b) Each owner and operator of a cannabis business shall must maintain a current register of the names and the contact information (including the name, address, telephone number, and percentage of ownership) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the cannabis business. The register required by this paragraph shall must be provided to the City Manager or his/her designee(s) upon a reasonable request. If at any time a corporation, LLC, company, trust or other entity holds an interest in a cannabis business, the register required by this paragraph shall must also include the name and contact Created: 2022-05-13 14:23:15 [EST]
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information of a person designated as being able as answer all questions on behalf of that entity, together with the name of every person holding an interest in that cannabis business. The designated representative shall must provide whatever additional information the City Manager or his/her designee or the Police Department may reasonably request concerning the owners of that entity. (c) All cannabis businesses shall must maintain an inventory control and reporting system as required by state law and all permittees must comply with the track and trace system established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time. (d) Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPPA) regulations, each cannabis business shall must allow City of California City officials to have access to the business's books, records, accounts, together with any other data or documents relevant to its permitted cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than two (2) business days after receipt of the City's request, unless otherwise stipulated by the City.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.902. Security Measures.
(a) A permitted cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the cannabis business. Except as may otherwise be determined by the City, these security measures shall include compliance with all State security regulations required under the Cannabis Licensee's State cannabis license, as those regulations may be amended from time to time (b) Every cannabis business and cannabis dispensary shall provide adequate security on the premises, including lighting and alarms, to insure the safety of persons and to protect the premises from theft. As part of an application for a cannabis use, each applicant shall prepare and submit a security plan for review and approval by the Chief of Police, which approval or denial will be based upon the security standards stated above and in compliance with any security measures agreed upon between the City Manager and Chief of Police. Said plans shall remain updated and secured on file in the protective custody of the Building Department. The information provided for purposes of this section shall be maintained by the Building Department as confidential information and shall not be disclosed as public records unless pursuant to subpoena issued by a court of competent jurisdiction.
(c) The City Council may impose further security requirements above and beyond the minimum-security requirements imposed by State regulations, upon the recommendation of the City Manager in consultation with the Chief of Police based on the unique circumstances associated with a particular cannabis business.
Except as may otherwise be determined by the City Council, these security measures shall include compliance with all State security regulations required under the Cannabis Licensee's State cannabis license, as those regulations may be amended from time to time.
(d) A cannabis business shall identify a designated security representative/liaison to the City of California City, who shall be reasonably available to meet with the City Manager, the City's Police Chief, the City Fire Chief, or their designees, regarding any security related measures or and operational issues. (e) The cannabis business shall cooperate with the City whenever the City Manager or his designee makes a request, upon reasonable notice to the cannabis business, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter. (f) A cannabis business shall notify the Chief of Police and the City Manager or his/her designee within twentyfour (24) hours after discovering any of the following:
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(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager working in consultation with the Chief of Police. (2) Diversion, theft, loss, or any criminal activity involving the cannabis business or any agent or employee of the cannabis business.
(3) The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the cannabis business. (g) When more than one cannabis businesses or dispensary is located adjacent to, or in close proximity to another cannabis business or dispensary, the businesses or dispensaries may present a joint security plan to the Chief of Police for review and approval to avoid redundant activity and excess costs, provided the required level of security and effectiveness are not compromised, as determined by the Chief of Police. (h) Owners of all cannabis facilities in the city must identify all animals on the premises on a sign to be located at the knock box, unless the animal is a service animal as defined by Title II of the Americans with Disabilities Act. Property owners are responsible for the costs of the sign and installation of the sign. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.903. Restriction on Alcohol Sales.
No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on the premises of the cannabis business. Alcoholic beverages may be consumed on the premise incident to a properly permitted event such as a grand opening or grand-opening or community event. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.904. ReservedReport Termination of Cannabis Operations.
Owners and operators of cannabis businesses are required to report to the City Manager in writing within 3 business days of ceasing or terminating any cannabis activity in the City. Ceasing or terminating any cannabis activity means the owner or operator is no longer operating a cannabis business from the licensed location and does not intend to operate a cannabis business from the licensed location while maintaining an active cannabis business permit.
Sec. 5-6.905. Fees and charges.
(a) No person may commence or continue any cannabis activity in the City, without timely paying in full all fees, taxes and charges required for the operation of a cannabis activity. Fees and charges associated with the operation of a cannabis activity shall must be established by resolution of the City Council which may be amended from time to time.
(b) All cannabis businesses authorized to operate under this Chapter shall must pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each Cannabis businesses shall be are required to cooperate with City with respect to any request to audit the cannabis business' books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period. ( Ord. No. 18-766, § 2, 8-28-2018 )
- Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 10. ADDITIONAL REQUIREMENTS FOR DISPENSARIES
California City, California, Code of Ordinances Created: 2022-05-13 14:23:15 [EST] (Supp. No. 10)
Sec. 5-6.906. Miscellaneous Operating Requirements.
(a) Hours of Operation. Cannabis businesses operating as retail storefront dispensaries may be open for access to the public only between the hours of 8:00 A.M. and 9:00 P.M. (b) Other cannabis businesses may operate only during the hours specified in the cannabis business permits issued by the City.
(c) Restriction on Consumption. Cannabis shall not be smoked, ingested, used, or otherwise consumed on the premises of a cannabis businesses or elsewhere in the City of California City, other than within private residences.
(d) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a cannabis business permit, or on any of the vehicles owned or used as part of the cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (e) Emergency Contact. Each cannabis business shall provide the City Manager or his/her designee(s), the City's Chief of Police, and the City's Fire Chief with the name, telephone number (including mobile number) of one or more on-site employee(s) or owner(s), to whom emergency notice can be provided at any hour of the day. (f) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business identification signage for a cannabis business shall conform to the requirements of the California City Municipal Code, including, but not limited to, seeking the issuance of a City sign permit. (2) No signs placed on the premises of a cannabis business shall obstruct any entrance or exit to the building or any window.
(3) Each entrance to a cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the cannabis business is prohibited.
(4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered.
No cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the cannabis business or elsewhere including, but not limited to, the public right-of-way.
(5) Signage shall not be directly illuminated, internally or externally, except that the name and address of the business may be illuminated at night. No banners, flags, billboards or other prohibited signs may be used at any time.
(g) Minors.
(1) Persons under the age of eighteen (18) years shall not be allowed on the premises of a cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful - Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 10. ADDITIONAL REQUIREMENTS FOR DISPENSARIES
California City, California, Code of Ordinances Created: 2022-05-13 14:23:15 [EST] (Supp. No. 10)
and a violation of this Chapter for any person to employ any person at a cannabis business who is not at least eighteen (18) years of age.
(2) The entrance to the cannabis business shall be clearly and legibly posted with a notice that no person under the age of eighteen (18) years of age is permitted to enter upon the premises of the cannabis business.
(h) Odor Control. Odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off-site. Cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis business. As such, cannabis businesses must install and maintain the following equipment, or any other equipment which the City Manager or his/her designee(s) determine is a more effective method or technology:
(1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
(2) An air system that creates negative air pressure between the cannabis business's interior and exterior, so that the odors generated inside the cannabis business are not detectable on the outside of the cannabis business.
The equipment must be approved by the building official and installed prior to commencing operation. Cannabis businesses must not create offensive odors; create excessive dust, heat, noise, smoke, traffic, or other impacts that are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; or be hazardous due to use or storage of materials, processes, products, or wastes. (i) Display of Permit and City Business License. The original copy of the cannabis business permit issued by the City pursuant to this Chapter and the City issued business license shall be posted inside the cannabis business in a location readily-visible to the public. (j) Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, or supervisor, of the cannabis business must submit fingerprints and other information deemed necessary by the City Manager or his/her designee(s) for a background check. The City Manager shall contract with a qualified third party to conduct the required background check and report back to the City , person, and cannabis business the results. The City shall not disseminate the information reported to it as a result of the background check to any other private party. Also pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of record, no person shall be issued a permit to operate a cannabis business or related work permit unless they have first cleared the background check. A The City may impose a fee for the cost of the background investigation as it deems necessary and appropriate, which - Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 10. ADDITIONAL REQUIREMENTS FOR DISPENSARIES
California City, California, Code of Ordinances Created: 2022-05-13 14:23:15 [EST] (Supp. No. 10)
must be paid at the time the application for a cannabis business permit is submitted. If this amount is not sufficient, the applicant shall provide additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or if the applicant withdraws their application, any fees paid for this process will be deemed non-refundable. (k) Permits and other Approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to establish and to operate. (l) No person may live, reside, or sleep on the premise of any cannabis business. This includes, but is not limited to residing in a recreational vehicle, tent, or vehicle on the property of a cannabis business even if the recreational vehicle, tent, or vehicle is not on the licensed premises. (m) A cash bond in an amount set by resolution of the City Council shall be deposited by the applicant to secure the City against damage to public property and to assure compliance with cannabis regulations. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.907. – Alteration and Modification of Premises, Equipment Location, Type, or Quantity.
A licensee under this Chapter must not make any physical change, alteration, or modification of the premises of a cannabis business that materially or substantially alters the licensed premises from the plans approved, or any physical change, alteration, or modification to the equipment location, typer or quantity without obtaining a Conditional Use Permit, or processing an amendment to the cannabis business’ Conditional Use Permit, as applicable. Material changes include, but are not limited to, an increase or decrease in the total square footage of the licensed premises or the addition, sealing of, or relocation of a wall, common entryway, doorway, or other means of public ingress and/or egress to the licensed premises.
Sec. 5-6.908. – Cannabis Waste.
(a) For purposes of this Chapter, “Cannabis Waste” is waste that is not hazardous waste as defined in Public Resources Code section 40141 and is solid waste, as defined in Section 40191 of the Public Resources Code, that contains cannabis and that has been made unusable and unrecognizable in the manner prescribed below. A licensee may not sell distribute, donate, transfer, or provide cannabis waste except as expressly provided herein. (b) A licensee must make cannabis and/or cannabis products into cannabis waste by rendering the cannabis and/or cannabis products unusable and unrecognizable. The licensee shall render the cannabis and/or cannabis products into cannabis waste before removing the cannabis waste from the licensed premises. A licensee shall render the cannabis and/or cannabis product into cannabis waste by grinding and incorporating the cannabis and or cannabis product with other ground material so that the resulting mixture is at least 50 percent non-cannabis material by volume. A licensee shall render cannabis and/or cannabis products into cannabis waste and track that waste one batch at a time and shall not commingle different batches into cannabis waste. - Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 11. ADDITIONAL REQUIREMENTS FOR CULTIVATION FACILITIES Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
(c) The licensee must render the cannabis and/or cannabis product into cannabis waste on camera or in the presence of City staff, as requested.
(d) Cannabis goods and cannabis waste must be stored, managed and disposed of in compliance with State law, including the MAURCSA and any regulations adopted thereto, as may be amended from time to time. (e) Notwithstanding that State law may permit the same, on-site composting of cannabis, cannabis goods/product or cannabis waste is expressly prohibited.
ARTICLE 10. ADDITIONAL REQUIREMENTS FOR DISPENSARIES
Sec. 5-6.1001. Operating Requirements.
(a) Owners and Operators are required to verify the age and the necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years. (b) Dispensaries may have on-site, in the retail sales area of the dispensary, only that quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale. (c) At no time shall cannabis or cannabis products be donated or given away, unless it is for a valid purpose and pursuant to a program authorized in writing in advance by the City. (d) All restroom facilities shall remain locked and under the control of management. (e) No dispensary may operate from more than one location within the City. ( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 11. ADDITIONAL REQUIREMENTS FOR CULTIVATION FACILITIES Sec. 5-6.1101. Operating Requirements.
(a) Outdoor Cultivation Prohibited. The cultivation of all cannabis must occur indoors, and only in a facility holding a valid cannabis business permit from the City under this Chapter. All outdoor cultivation is prohibited.
The above restriction against outdoor cultivation specifically includes, but is not limited to, a prohibition on the outdoor cultivation of any plants which an individual may be growing for his/her personal use, if the growth of plants for personal use is authorized under State law.
(b) All structures used for cultivation must be legally constructed with all applicable permits, including but not limited to grading, building, electrical, mechanical, and plumbing. (b(c) In no case shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.
(cd) Cannabis cultivation shall must be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. The commercial cultivation of cannabis must be conducted in - Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 13. ADDITIONAL REQUIREMENTS FOR MANUFACTURED CANNABIS California City, California, Code of Ordinances Created: 2022-05-13 14:23:15 [EST] (Supp. No. 10)
accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.
Any fumigation or insecticidal fogging shall comply with the California Fire Code Chapter 26 (Fumigation and Insecticidal Fogging).
(e) This is to clarify that burning sulfur to control pests in enclosed spaces is considered a pesticidal use requiring registration by U.S Environmental Protection Agency and the Department of Pesticide Regulation. There are currently no products registered for this type of use and therefore this method is considered prohibited. (d(f) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. (g) Indoor grow lighting systems must:
(i) Be shielded to confine light and glare to the interior of the allowable structure; and (ii) Comply with the Municipal Code, including the Building Code and Fire Code. (h) (h)The cultivation site must have ventilation and filtration systems installed that prevent cannabis odors from exiting the interior of the structure or portion of the structure where cannabis is cultivated. The ventilation and exhaust system shall be approved by the building official and installed prior to commencing cultivation within the allowable structure.
(i) Cultivation sites must not create offensive odors; create excessive dust, heat, noise, smoke, traffic, or other impacts that are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; or be hazardous due to use or storage of materials, processes, products, or wastes.
(j) Cultivation sites must require any necessary permits from the air quality management district before beginning operations and must furnish receipt of these permits to the City. (k) The cultivation site must comply with the State’s track and trace system and requirements, as may be amended from time to time.
(l) The cultivation site must keep adequate records of any cannabis related activity, including conducting an inventory on the first business day of each week and recording the total quantity of each type of cannabis on the premises. Records expressly include, but are not limited to, video recordings maintained pursuant to subsection (F), above. All records shall be maintained for seven (7) years from the date created or longer if required by State or Federal law.
(e(m) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(fn) All applicants for a cannabis cultivation permit shall submit the following in addition to the information generally otherwise required for a cannabis business:
- Code of Ordinances
TITLE 5 - PUBLIC WELFARE
CHAPTER 6. - REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY.
ARTICLE 13. ADDITIONAL REQUIREMENTS FOR MANUFACTURED CANNABIS California City, California, Code of Ordinances Created: 2022-05-13 14:23:15 [EST] (Supp. No. 10)
(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting (indoor, mixed-light).
(2) A description of a legal water source, irrigation plan, and projected water use. (3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes.
(4) Plan for addressing odor and other public nuisances which may derive from the cultivation site. ( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 12. ADDITIONAL REQUIREMENTS FOR DELIVERY DISPENSING SERVICES Sec. 5-6.1201. Permitted; Association with Dispensaries.
Mobile delivery of cannabis from dispensaries shall be permitted pursuant to this Chapter. Delivery of cannabis from a dispensary permitted pursuant to this Chapter can only be made in a city or county that does not expressly prohibit it by ordinance.
( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 13. ADDITIONAL REQUIREMENTS FOR MANUFACTURED CANNABIS Sec. 5-6.1301. Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products.
The manufacturing of food or other products infused with or which otherwise contain cannabis may be manufactured within the appropriate manufacturing zoning districts as described in Title 9, Chapter 2, Article 29, subject to the regulations set forth in this Chapter, and subject to whatever additional regulations may be promulgated hereunder by an ordinance or resolution of the City Council. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1302. Packaging and Labeling.
(a) Before a cannabis manufacturer delivers any edible cannabis or edible cannabis product to a dispensary, the same shall be labeled and placed in tamper-evident packaging which at least meets the requirements of Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
California Business and Professions Code Section 19347, as the same may be amended from time-to-time or superseded or replaced by subsequent State legislation or by any department or division of the State of California.
(b) All items to be sold or distributed shall be individually wrapped at the original point of preparation by the business permitted as a cannabis manufacturer.
(c) Labeling must include a warning if nuts or other known allergens are used and must include the total weight (in ounces or grams) of cannabis in the package.
(d) The package must have a label warning that the product is to be kept away from children. (e) The label must also state that the product contains cannabis and must specify the date of manufacture. (f) Any edible cannabis product that is made to resemble a typical food product must be in a properly labeled opaque (non-see-through) package before it leaves the cannabis manufacturing business. (g) Deliveries must be in a properly labeled opaque package when delivered. (h) The City Council may impose additional packaging and labeling requirements on cannabis or cannabis products by resolution, as permitted by law.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1303. – Regulation of Manufacturing Sites.
(A) The Manufacturing Site must receive and maintain approval from the local fire official for the closed-loop system, other equipment, the extraction operation, and the facility; (B) The Manufacturing Site must meet required fire, safety, and building code requirements in one or more of the following:
(1) The California Fire Code;
(2) The National Fire Protection Association (NFPA) standards; (3) International Building Code (IBC);
(4) The International Fire Code (IFC);
(5) Other applicable standards, including complying with all applicable fire, safety, and building codes in processing, handling, and storage of solvents or gasses. (C) All equipment must be Underwriter Laboratories listed or approved by a similar agency or certified by a mechanical engineer licensed in the United States.
(D) The owners and operators of the Manufacturing Site must be in possession of a valid seller’s permit issued by the California Department of Tax and Fee Administration or a notification issued by the California Department of Tax and Fee Administration that the Manufacturing Site is not required to have a seller’s permit.
ARTICLE 14. APPLICATION OF CHAPTER; OTHER LEGAL DUTIES
Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
Sec. 5-6.1401. Promulgation of Regulations and Standards. (a) In addition to any regulations adopted by the City Council, the City Manager or his/her designee is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of cannabis business permits, the ongoing operation of cannabis businesses and the City's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter, provided such regulations are approved by the City Council before they are implemented. (b) Regulations shall be published on the City's website. (c) Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager or his designee. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1402. Community Relations.
Cannabis Businesses are encouraged to establish a local association of Cannabis Businesses to at a minimum (1) communicate with the community in general and residents and other businesses closely adjacent to active Cannabis Businesses, (2) represent the Cannabis Businesses before the City Council and city staff, (4) seek for opportunities to support worthy individual and community needs, (5) create opportunities for the public to better understand the operations and contributions of the industry. The City Manager shall make city staff available to assist in establishing a Cannabis Business Association. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1403. Fees Deemed Debt to City of California City.
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City of California City that is recoverable via an authorized administrative process as set forth in the Municipal Code, or in any court of competent jurisdiction.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1404. Permit Holder Responsible for Violations.
The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City of California City, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the cannabis business whether or not said violations occur within the permit holder's presence. ( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1405. Inspection and Enforcement.
(a) The City's Police Department, Fire Department, Code Enforcement and Building Department, and Finance Department are charged with enforcing the provisions of the California City Municipal Code, or any provision thereof, may enter the location of a cannabis business at any time during the hours of operation without notice, including the Building Code and the Fire Code, and inspect the location of any cannabis business as Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law.
(b) It is unlawful for any person having responsibility over the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this Chapter or under State or local law.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1406. Concurrent Regulation with State.
It is the stated intent of this Chapter to regulate cannabis activity in the City of California City concurrently with the State of California.
( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 15. VIOLATIONS AND ENFORCEMENT
Sec. 5-6.1501. Violations declared a public nuisance.
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance.
Any violation of this Chapter is declared to be a public nuisance per se and contrary to the public interest and will at the discretion of the city, be subject to a cause of action for injunctive relief. In addition to any other method of enforcement, the city attorney may bring a civil action for injunctive relief and civil penalties against any person or entity that violates this section. In any civil action brought pursuant to this section, a court of competent jurisdiction may award reasonable attorneys' fees and costs to the prevailing party. The City may refer cases involving unlicensed commercial cannabis activity to the Attorney General to undertake civil enforcement action as authorized by the Government Code.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1502. Each Violation a Separate Offense.
Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the California City Municipal Code. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement and payment to the City of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City of California City may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the cannabis business or persons related to, or associated with, the cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager, his/her designee, or the Chief of Police, may take immediate action to temporarily suspend a cannabis business permit issued by the City, pending a hearing before the City Council. ( Ord. No. 18-766, § 2, 8-28-2018 )
Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
Sec. 5-6.1503. Criminal Penalties and Administrative Fines.
Each and every violation of the provisions of this Chapter may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000.00) per violation or imprisonment in the county jail for a period of not more than twelve (12) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. (a) Any enforcement officer may issue an administrative citation and fine for a violation of this section without prior issuance of a Notice of Violation and the administrative fine shall be up to one thousand dollars ($1,000.00) per violation. For the purposes this section, each cannabis plant present in violation of this Chapter is a separate violation. The property owner and each owner of the occupant business entity engaging in commercial cannabis activity in violation of this section shall be jointly and severally liable for all penalties and fines.
(b) Each and every day a violation of this Chapter exists shall constitute a separate and distinct violation.
Aggregate fines shall not exceed ten thousand dollars ($10,000.00) per day if administrative fines are imposed immediately without prior issuance of a Notice of Violation. (c) If the City imposes fines immediately, the property owner or their agent shall have 5 days in which to submit evidence to the City of the following: i) a tenant is in possession of the property, ii) the rental or lease agreement with the tenant prohibits commercial cannabis activity, and iii) the property owner or agent did not know the tenant was engaging in illegal commercial cannabis activity and no complaint, property inspection, or other information alerted the rental property owner or agent to the illegal commercial cannabis activity.
(d) The City Manager or their designee must determine whether the evidence submitted by the property owner or rental agent proves items i, ii, and iii above to be true. If the City Manager or their designee so finds, the City will suspend the fines and provide the property owner or their agent with 10 days to remedy the violations before fines are reinstated.
(e) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the City’s designated representative shall be prima facie evidence of reasonable costs of investigation and prosecution of the case. The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the City Attorney.
(f) The City may issue an emergency decision and order for temporary, interim relief to prevent or avoid immediate danger to the public health, safety, or welfare. (g) The emergency decision and order issued by the City shall include a brief explanation of the factual and legal basis of the emergency decision that justify the City’s determination that emergency action is necessary, and the specific actions ordered. The emergency decision and order shall be effective when issued or as otherwise provided by the decision and order.
Each cannabis plant present in violation of this section is a separate violation. The property owner and each owner of the occupant business entity engaging in commercial cannabis activity in violation of this section shall be jointly and severally liable for all penalties and fines.
Each and every day a violation of this section exists shall constitute a separate and distinct violation. Aggregate fines shall not exceed ten thousand dollars ($10,000.00) per day if administrative fines are imposed immediately without prior issuance of a Notice of Violation.
If the City imposes fines immediately, the property owner or their agent shall have 5 days in which to submit evidence to the City of the following: i) a tenant is in possession of the property, ii) the rental or lease agreement with the tenant prohibits commercial cannabis activity, and iii) the property owner or agent did not know the Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
tenant was engaging in illegal commercial cannabis activity and no complaint, property inspection, or other information alerted the rental property owner or agent to the illegal commercial cannabis activity.
The City Manager or their designee must determine whether the evidence submitted by the property owner or rental agent proves items i, ii, and iii above to be true. If the City Manager or their designee so finds, the City will suspend the fines and provide the property owner or their agent with 10 days to remedy the violations before fines are reinstated.
Violations of this Chapter may also be punished by administrative fines or citations pursuant to Title 1, Chapter 3, of this Code.
( Ord. No. 18-766, § 2, 8-28-2018 )
Sec. 5-6.1504. Remedies Cumulative and Not Exclusive.
The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law.
( Ord. No. 18-766, § 2, 8-28-2018 )
ARTICLE 16. UNLICENSED CANNABIS ACTIVITIES
Sec. 5-6.1601. – Definitions.
Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter. Words and phrases undefined in this chapter have the same meaning as set forth in Section 17.04.110; the Adult Use of Marijuana Act; the Compassionate Use Act; the Medical Marijuana Program Act; or the Medical Marijuana Regulation and Safety Act:
(A) "Commercial cannabis activity" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of cannabis or a cannabis product. (B) "Facility" means a building or other structure at which commercial cannabis activity occurs including, without limitation, a medical marijuana collective.
(C) "Hearing officer" means City Manager or designee.
(D) "Incidental expenses" include, without limitation, actual expenses, City administrative costs and other costs of the City of all previous code enforcement efforts, the preparation of the abatement work specifications, contracts, and staff time in inspecting the work, as well as the costs of printing, posting and mailings required by this chapter.
(E) Responsible person" means any person or persons creating, causing, committing or maintaining any public nuisance as defined by this chapter including, without limitation, any person owning, leasing, occupying or having charge or possession of real property.
(F) “Unlicensed cannabis facility" means any facility within the City that does not possess a valid permit issued in accordance with this Code to conduct commercial cannabis activity.
Sec. 5-6.1602. – Unlicensed Cannabis Activity is a Nuisance.
It is unlawful and it is declared to be a public nuisance for any responsible person to allow an unlicensed cannabis facility to operate on real property. This section is not the exclusive definition or designation of what constitutes a nuisance within this City. It supplements and is in addition to other regulatory codes, statutes, and ordinances enacted by the City, state, or any other legal entity or agency having jurisdiction.
Created: 2022-05-13 14:23:15 [EST]
(Supp. No. 10)
Sec. 5-6.1603. – Abatement Authority.
The City Manager, City Attorney, and Building Official are authorized to abate public nuisances summarily or otherwise in the manner provided by this chapter.
Sec. 5-6.1604. – Abatement of Nuisance.
Except as specifically provided otherwise by this chapter, the procedural requirements set forth in Chapter 5.1 apply to abating unlicensed cannabis facilities.
Sec. 5-6.1605. – Recovery of Costs from Responsible Person.
The costs of abatement may be recovered as set forth in this chapter or other applicable law.
Sec. 5-6.1606. – Failure to Remove Unlicensed Cannabis Facility.
In addition to any abatement costs incurred by the City for closing or removing unlicensed cannabis facilities from private property, failure to voluntarily abate an unlicensed cannabis facility after notification will result in the penalties set forth in this chapter.
Sec. 5-6.1607. – Penalty.
A. Any person who violates any provision of this chapter for which no other penalty is otherwise provided is guilty of a misdemeanor.
B. Any responsible person failing to cease operating an unlicensed cannabis facility or removing it upon direction by the City Manager, or designee, within the prescribed time period may be liable to the city pursuant to Sec. 5-6.1503 or Title 1, Chapter 3, of this Code.
C. Filing a suit for civil penalties is not a bar against, or a prerequisite for, taking other enforcement action, whether criminal, civil or administrative, against a responsible person.
Sec. 5-6.1608. – Additional Recovery.
Nothing in this chapter is intended to limit the city's additional remedies for recovering taxes or damages in accordance with any applicable law including, without limitation:
(A) Cannabis taxes owed by the unlicensed cannabis facility pursuant to Chapter 3-2.8 of this code; (B) Damages owed to the City pursuant for engaging in unlawful business practices in accordance with Business and Professions Code Section 17200, et seq.
4884-5188-8813 v2
AN ORDINANCE OF THE CITY OF CALIFORNIA CITY, CALIFORNIA AMENDING (1) CHAPTER 5 (ADMINISTRATIVE CITATIONS) OF TITLE 1 (GENERAL PROVISIONS); (2) ARTICLE 8 (CANNABIS BUSINESS TAX) OF CHAPTER 2 (REVENUE) OF TITLE 3 (FINANCE); (3) CHAPTER 6 (REGULATION OF CANNABIS RELATED BUSINESSES AND
ACTIVITY) OF TITLE 5 (PUBLIC WELFARE); AND (4) ARTICLES 3 AND 29 (CANNABIS BUSINESSES AND CANNABIS DISPENSARIES) OF
CHAPTER 2 (ZONING) OF TITLE 9 (LAND USE AND DEVELOPMENT)
OF THE CITY OF CALIFORNIA CITY MUNICIPAL CODE RELATING TO
CANNABIS
WHEREAS, Article XI, § 7 of the California Constitution empowers the City to enact and enforce ordinances regulating conditions that may be public nuisances or health hazards, or that promote social, economic, or aesthetic considerations; and WHEREAS, California City Municipal Code (“CCMC”) permits commercial cannabis activity or medicinal cannabis activity within the City; and WHEREAS, a statewide initiative entitled the “Control, Regulate and Tax Adult Use of Marijuana Act” (“AUMA”) was approved by voters on the November 2016 ballot.
AUMA does not, and cannot, affect federal regulations as to cannabis or its derivatives.
WHEREAS, AUMA expressly preserves local control over the regulation of cannabis-related businesses and cannabis-related land uses (Business & Professions Code § 26200, et seq.); and
WHEREAS, it is in the public interest for the City to take appropriate actions to protect citizens and their property from conditions that threaten public health, safety, and welfare including, without limitation, matters that devalue real property; and WHEREAS, the City Council desires to amend the Municipal Code to update how it regulates cannabis businesses in the City to permit the City to better regulate cannabis businesses.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. RECITALS.
The City Council of the City of California City finds and declares that the Recitals set forth above are true and correct and are incorporated herein by this reference.
SECTION 2. AMENDMENT OF CHAPTER 5 (ADMINISTRATIVE CITATIONS) OF TITLE 1 (GENERAL PROVISIONS) OF THE CALIFORNIA CITY MUNICIPAL CODE. 4884-5188-8813 v2
Title 1 (General Provisions) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit A with deletions marked in strikethrough and additions in underline.
SECTION 3. AMENDMENT OF ARTICLE 8 (CANNABIS BUSINESS TAX) OF CHAPTER 2 (REVENUE) OF TITLE 3 (FINANCE) OF THE CALIFORNIA CITY MUNICIPAL CODE.
Title 3 (Finance) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit B with deletions marked in strikethrough and additions in underline.
SECTION 4. AMENDMENT OF CHAPTER 6 (REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY) OF TITLE 5 (PUBLIC WELFARE) OF THE CALIFORNIA CITY MUNICIPAL CODE.
Title 5 (Public Welfare) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit C with deletions marked in strikethrough and additions in underline.
SECTION 5. AMENDMENT OF TITLE 9 (LAND USE AND DEVELOPMENT) OF THE CITY OF CALIFORNIA CITY MUNICIPAL CODE.
Title 9 (Land Use and Development) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit D with deletions marked in strikethrough and additions in underline.
SECTION 6. CALIFORNIA ENVIRONMENTAL QUALITY ACT.
The Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, Sections 15060(c)(2) and 15060(c)(3) because the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment. The proposed Ordinance is also exempt from CEQA as it is not a project as defined in Section 15378 of the state CEQA Guidelines and the Ordinance has no potential to result in a physical change to the environment, directly or indirectly. Therefore, no environmental assessment is required or necessary.
SECTION 7. SEVERABILITY.
If any chapter, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each Chapter, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more Sections, subsections, 4884-5188-8813 v2
subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 8. EFFECTIVE DATE.
This ordinance shall take effect thirty (30) days after its passage by the City Council.
SECTION 9. CITY CLERK ACTION.
The City Clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Chapter 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and pasting procedure authorized under Government Code Chapter 39633(c).
PASSED AND ADOPTED by the City Council of the City of California City on the __ day of _________, 2024.
______________________________________
Kelly Kulikoff, Mayor
APPROVED AS TO FORM: ATTEST:
_________________________________ ______________________________________ Victor M. Ponto, City Attorney Daryl Betancur, City Clerk 4884-5188-8813 v2
STATE OF CALIFORNIA)
COUNTY OF KERN )
CITY OF CALIFORNIA CITY)
I, Daryl Betancur, City Clerk of the City of California City, California, do hereby certify that the foregoing Ordinance No. 24-__, was introduced at a regular meeting of the City Council of the City of California City held on the __ day of ________, 2024, and was passed by the City Council of the City of California at a regular meeting held on the __ day of _________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
Daryl Betancur, City Clerk
1 ITEM NO. NB1
COUNCIL AGENDA ITEM
August 13, 2024
PREPARED BY: Kenny Cooper, Finance Manager
SUBJECT: Presentation of FY 2022-23 Financial Audit Report Prepared by Bryant L. Jolley, Certified Public Accountants
BACKGROUND/ DISCUSSION
Presentation by Bryant L. Jolley CPAs on City of California City’s Financial Statements Year Ended 6/30/2023.
Audit Purpose:
The fundamental audit purpose is to provide independent assurances that management has presented financial statements that are a “true and fair” view of a company’s financial performance and position.
Audit Opinions:
In accordance with the US GAAP, auditors must release an opinion of the overall financial statements in the auditor's report. In other words, this is sometimes referred to as a report card. An unmodified opinion can be interpreted as an “A”, whereas an adverse opinion can be interpreted as an “F”. There are generally four types of audit opinions that auditors may render on the financial statements which are:
Unmodified Opinion (Letter Grade “A”) - When expressing an unmodified opinion on financial statements, the auditor’s opinion should state that the financial statements present fairly, in all material respects, the financial position of the entity as of the balance sheet date and the results of its operations and its cash flows for the period then ended, in accordance with the applicable financial reporting framework. Qualified Opinion (Letter Grade “C”) – a. The auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are material but not pervasive to the financial statements or b. The auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, but 2 the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive. Adverse Opinion (Letter Grade “F”) ¬ - The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.
Disclaimer (No letter Grade) – The auditor should disclaim an opinion when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements, if any, could be both material and pervasive.
Audit Opinion Results:
The City of California City’s auditors rendered an Unmodified Opinion on the overall financial statements of the city (Letter Grade “A”).
Audit Findings & Recommendations:
There were no audit finding & recommendations to address in FY22-23.
Staff is grateful for the hard work of Josh Giosa and his team at Price, Paige & Company, as well as Luis Perez and his team at Bryant L. Jolley for their dedication in completing this audit. Please note that an audit representative from Bryant L. Jolley will explain the audit results in more detail. They will also be able to answer any questions that the City Council and/or public may have.
FISCAL IMPACT
None
COUNCIL OPTIONS
1. Council can approve the report
2. Council can deny the report
3. Council can take no action
RECOMMENDATION
Staff recommends that Council receive and file the FY22-23 Audit Report from Bryant L.
Jolley CPA’s.
ATTACHMENTS
1. California City Financial Statement 2023
2. Management Report and Auditor Communication 2023
City of California City | California
Financial Statements
For the Year Ended June 30, 2023
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Financial Statements
TABLE OF CONTENTS
PAGE
Independent Auditor’s Report ............................................................................................................................................ 1 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................................................ 6 Statement of Activities ................................................................................................................................................. 7 Fund Financial Statements:
Governmental Funds:
Balance Sheet ......................................................................................................................................................... 9 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................... 10 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 11 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................ 12 Proprietary Funds:
Statement of Net Position .................................................................................................................................... 13 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 14 Statement of Cash Flows ...................................................................................................................................... 15 Fiduciary Funds:
Statement of Fiduciary Net Position .................................................................................................................... 16 Statement of Changes in Fiduciary Net Position .................................................................................................. 17 Notes to the Basic Financial Statements ............................................................................................................................ 19 Required Supplementary Information:
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan:
Schedule of Proportionate Share of Net Pension Liability .......................................................................................... 49 Schedule of Contributions ........................................................................................................................................... 50 CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Financial Statements
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information (Continued):
Budgetary Comparison Schedules:
General Fund ............................................................................................................................................................... 51 Special Revenue Funds:
Street Maintenance Fund .................................................................................................................................... 52 Subdivision Deferred Improvement Fund ............................................................................................................ 53 Public Safety Services Fund .................................................................................................................................. 54 OHV Grant Special Revenue Fund ........................................................................................................................ 55 Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................................................................ 57 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................... 59 BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT
To the City Council of the
City of California City
California City, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of California City, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements.
Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the Proportionate Share of Net Pension Liability on page 49, Schedule of Contributions on page 50, and the budgetary comparison information on pages 51 - 55 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained 3 during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 17, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
July 17, 2024
4 BASIC FINANCIAL STATEMENTS
5 GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 6 Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 12,334,625 9,646,344 $ 21,980,969 $ Receivables:
Interest 66,664 49,797 116,461
Accounts 367,964 781,260 1,149,224
Taxes 357,126 - 357,126
Intergovernmental 6,534,689 1,338,212 7,872,901
Leases 96,777 - 96,777
Prepaid expenses 280,797 - 280,797
Internal balances 2,494,554 (2,494,554) -
Due from Successor Agency 20,734,886 - 20,734,886
Allowance: Due from Successor Agency (20,684,224) - (20,684,224) Advances to the Successor Agency 197,000 - 197,000
Restricted assets:
Cash and investments 82,578,739 - 82,578,739
Interest receivable 744,037 - 744,037
Capital assets:
Nondepreciable 4,044,968 4,317,046 8,362,014
Depreciable, net of accumulated depreciation 22,013,060 10,016,014 32,029,074 Total assets 26,342,400 129,473,381 155,815,781
DEFERRED OUTFLOWS OF RESOURCES
Pension related 6,681,900 2,116,213 8,798,113
Total deferred outflows of resources 6,681,900 2,116,213 8,798,113
LIABILITIES
Accounts payable 1,022,822 1,228,083 2,250,905
Retainage payable 30,514 135,204 165,718
Accrued liabilities 757,291 - 757,291
Accrued interest - 6,418 6,418
Unearned revenue 870,939 - 870,939
Deposits payable 69,930 251,700 321,630
Noncurrent liabilities:
Due within one year:
Compensated absences 360,015 106,000 466,015
Notes payable - 75,802 75,802
Lease liabilities 31,600 - 31,600
Due in more than one year:
Compensated absences 426,353 64,324 490,677
Notes payable 990,822 - 990,822
Lease liabilities 57,830 - 57,830
Net pension liability 14,284,720 4,729,617 19,014,337
Total liabilities 17,912,014 7,587,970 25,499,984
DEFERRED INFLOWS OF RESOURCES
Pension related 1,002,565 326,950 1,329,515
Lease related - 66,749 66,749
Total deferred inflows of resources 326,950 1,069,314 1,396,264
NET POSITION
Net investment in capital assets 25,968,598 13,266,436 39,235,034 Restricted for:
Parks and recreation 12,691 - 12,691
Street maintenance 3,138,230 - 3,138,230
Subdivision infrastructure 83,322,776 - 83,322,776
Community development 1,842,964 - 1,842,964
Unrestricted 7,277,257 2,888,694 10,165,951
Total net position $ 20,543,693 117,173,953 $ 137,717,646 $ Primary Government
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Statement of Activities
The notes to the basic financial statements are an integral part of this statement. 7 Operating Capital
Charges for Contributions Contributions Governmental Business-Type Expenses Services and Grants and Grants Activities Activities Total Governmental activities:
General government 3,499,618 $ 1,198,165 $ 201,670 $ - $ (2,099,783) $ - $ (2,099,783) $ Public safety 7,615,218 565,367 768,401 15,000 (6,266,450) - (6,266,450) Parks and recreation 1,248,998 294,567 580 - (953,851) - (953,851) Public works 3,288,861 284,361 1,653,034 446,674 (904,792) - (904,792) Community development 444,444 775,263 221 - (330,598) - (330,598) Total governmental activities 2,786,904 16,427,958 2,623,906 461,674 (10,555,474) - (10,555,474) Business-type activities:
Water 4,285,894 4,093,763 4,300 - (187,831) - (187,831)Sewer 1,155,540 1,608,469 - - 452,929 - 452,929Airport 512,557 152,679 10,000 - (349,878) - (349,878) Dial-a-Ride 11,157 317,947 217,945 - - (88,845) (88,845) Total business-type activities 6,271,938 5,866,068 232,245 - - (173,625) (173,625) Total $ 8,652,972 22,699,896 $ 2,856,151 $ 461,674 $ (10,555,474) (173,625) (10,729,099) General revenues:
Taxes:
Property 2,928,333 4,561 2,932,894
Sales 7,524,078 7,524,078 -
Franchises 532,658 532,658 -
Transient occupancy 93,428 93,428 -
Other taxes 920,287 920,287 -
Business licenses 71,562 71,562 -Motor vehicle in lieu 15,390 15,390 -Use of money and property (338,692) 223,840 (114,852)Miscellaneous 10,639 234,436 245,075 Total general revenues and transfers 11,981,480 239,040 12,220,520 Change in net position 65,415 1,426,006 1,491,421
Net position - beginning 20,478,278 115,747,947 136,226,225 Net position - ending $ 20,543,693 117,173,953 $ 137,717,646 $ Net (Expense) and
FUNCTIONS/PROGRAMS:
Program Revenues Changes in Net Position
8 FUND FINANCIAL STATEMENTS
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Governmental Funds
Balance Sheet
The notes to the basic financial statements are an integral part of this statement. 9 Special Revenue Funds
Subdivision Public Nonmajor Total
Street Deferred Safety OHV Governmental Governmental
General Maintenance Improvement Services Grants Funds Funds ASSETS
Cash and investments $ 7,134,311 $ - $ - $ - $ 2,512,033 - $ $ 9,646,344 Receivables:
Interest 65,811 - - 24 - 829 66,664
Accounts 102,612 - 265,352 - - 367,964 -
Taxes 337,234 - - - 19,892 - 357,126
Intergovernmental 196,153 5,161,057 33,638 - 1,092,289 51,552 6,534,689 Leases 96,777 - - - - - 96,777
Prepaid expenses 280,797 - - - - 280,797 -
Due from other funds 6,465,179 - - - - 6,465,179 -
Due from Successor Agency 50,662 20,684,224 - - - 20,734,886 - Allowance: due from Successor Agency - (20,684,224) - - - (20,684,224) - Advances to Successor Agency - - - - 197,000 - 197,000
Restricted assets:
Cash and investments - 82,578,739 - - - 82,578,739 -
Interest receivable - - 744,037 - - - 744,037
Total assets $ 5,161,057 14,729,536 $ 83,322,776 $ 299,014 $ 1,092,289 $ 2,781,306 $ 107,385,978 $
LIABILITIES
Accounts payable $ 554,579 252,619 $ - $ 59,017 $ 1,329 $ 155,278 $ 1,022,822 $ Retainage payable 30,514 - - - - - 30,514
Accrued liabilities - 757,291 - - - - 757,291
Unearned revenue - 870,939 - - - - 870,939
Deposits payable - 17,000 - - - 52,930 69,930
Due to other funds 1,437,734 - - 687,038 1,695,387 150,466 3,970,625 Total liabilities 1,897,849 2,022,827 - 746,055 1,696,716 358,674 6,722,121
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 4,689,953 - - - 1,092,289 - 5,782,242 Lease related - 66,749 - - - - 66,749
Total deferred inflows of resources 4,689,953 66,749 - - 1,092,289 - 5,848,991
FUND BALANCES
Nonspendable:
Prepaid expenses 280,797 - - - - - 280,797
Leases receivable 30,028 - - - - - 30,028
Restricted for:
Public safety - - - - - 699,299 699,299
Parks and recreation - - - - - 12,691 12,691
Subdivision infrastructure - - 83,322,776 - - - 83,322,776 Community development - - - - - 1,842,964 1,842,964
Assigned for:
Community development - - - - - 18,144 18,144
Parsac insurance 100,000 - - - - 100,000 -
Unassigned 12,354,113 (1,551,723) - (447,041) (1,696,716) (150,466) 8,508,167 Total fund balances (deficits) (1,551,723) 12,764,938 83,322,776 (447,041) (1,696,716) 2,422,632 94,814,866 Total liabilities, deferred inflows of resources,
and fund balances 14,729,536 $ 5,161,057 $ 83,322,776 $ 299,014 $ 1,092,289 $ 2,781,306 $ 107,385,978 $ CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position The notes to the basic financial statements are an integral part of this statement. 10 Total fund balances - governmental funds $ 94,814,866 26,058,028
5,782,242
Deferred outflows of resources 6,681,900
Deferred inflows of resources (1,002,565)
Compensated absences (786,368)
Lease liabilities (89,430)
Net pension liability (14,284,720)
Net position of governmental activities $ 117,173,953
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in governmental funds.
Under the modified accrual basis of accounting used in governmental funds, revenues are not recognized for transactions that do not represent available financial resources. In the statement of net position and statement of activities, however, revenues are reported regardless of when the financial resources are available.
In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods.
In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported as follows:
Only current liabilities are recorded in the governmental funds balance sheet. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of:
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances The notes to the basic financial statements are an integral part of this statement. 11 Special Revenue Funds
Subdivision Public Nonmajor Total
Street Deferred Safety OHV Governmental Governmental
General Maintenance Improvement Services Grant Funds Funds
REVENUES
Taxes 4,239,800 $ - $ - $ 6,518,084 $ - $ 315,544 $ 11,073,428 $ Licenses and permits 990,176 - - 16,288 - - 1,006,464
Intergovernmental 1,193,595 1,160,246 - 49,401 16,404 167,102 2,586,748 Charges for services 846,474 12,113 - 479,644 - 444,444 1,782,675 Fines and forfeitures 16,955 - - 54,769 - - 71,724
Use of money and property 171,726 - (543,968) 27,648 - 5,902 (338,692) Miscellaneous - 102,007 - 83,608 - 51,681 237,296
Total revenues 7,560,733 1,172,359 (543,968) 7,229,442 16,404 984,673 16,419,643
EXPENDITURES
Current:
General government 3,309,556 - - - - - 3,309,556
Public safety - - - 7,590,937 600,055 65,539 8,256,531
Parks and recreation 1,072,835 - - - - - 1,072,835
Public works 1,597,761 947,814 32,971 - - - 2,578,546
Community development - - - - - 638,278 638,278
Capital outlay 503,543 828,129 - 3,049 - 31,869 1,366,590 Debt service:
Principal 30,591 34,146 - - - - 64,737
Interest 3,448 606 - - - - 4,054
Total expenditures 6,517,734 1,810,695 32,971 7,593,986 600,055 735,686 17,291,127 (638,336) 1,042,999 (576,939) (364,544) (583,651) 248,987 (871,484)
OTHER FINANCING SOURCES (USES)
Transfers in - 185,279 - - - - 185,279
Transfers out - (185,279) - - - - (185,279)
Total other financing sources (uses) (185,279) 185,279 - - - - - Net change in fund balances 857,720 (453,057) (576,939) (364,544) (583,651) 248,987 (871,484) Fund balances (deficits) - beginning 11,907,218 (1,098,666) 83,899,715 (82,497) (1,113,065) 2,173,645 95,686,350 Fund balances (deficits) - ending 12,764,938 $ (1,551,723) $ 83,322,776 $ (447,041) $ (1,696,716) $ 2,422,632 $ 94,814,866 $ Excess (deficiency) of revenues over
(under) expenditures
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities The notes to the basic financial statements are an integral part of this statement. 12 Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds $ (871,484) Depreciation expense (1,761,606)
Acquisition of capital assets 1,428,494
1,434,321
Financed purchases 40,875
Lease liability 30,591
416
23,725
1,100,674
Change in net position of governmental activities $ 1,426,006 In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis.
Governmental funds report capital outlays as expenditures. However, inthe statement of activities, the costs of those capital assets are allocated over their estimated useful lives as depreciation expense. Additionally, the net effect of various transactions is not reported in the governmental funds.
Certain revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds.
Repayment of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.
Compensated absence expenditures reported inthe statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in a government fund.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Proprietary Funds
Statement of Net Position
The notes to the basic financial statements are an integral part of this statement. 13 Water Sewer Airport Dial-a-Ride Total
ASSETS
Current:
Cash and investments 8,456,915 $ 3,877,710 $ - $ - $ 12,334,625 $ Receivables:
Interest 34,434 15,363 - - 49,797
Accounts 563,479 156,036 61,669 76 781,260
Intergovernmental - - - 1,338,212 1,338,212
Total current assets 4,049,109 9,054,828 61,669 1,338,288 14,503,894 Noncurrent:
Capital assets:
Nondepreciable 3,535,960 448,801 332,285 - 4,317,046
Depreciable, net of accumulated depreciation 1,381,713 5,417,375 3,111,120 105,806 10,016,014 Total noncurrent assets 1,830,514 8,953,335 3,443,405 105,806 14,333,060 Total assets 5,879,623 18,008,163 3,505,074 1,444,094 28,836,954
DEFERRED OUTFLOWS OF RESOURCES
Pension deferrals 1,513,321 395,345 78,184 129,363 2,116,213 Total deferred outflows of resources 395,345 1,513,321 78,184 129,363 2,116,213
LIABILITIES
Current liabilities:
Accounts payable 6,540 1,200,289 11,007 10,247 1,228,083 Retainage payable - 135,204 - - 135,204
Accrued interest 6,418 - - - 6,418
Deposits payable - 251,700 - - 251,700
Due to other funds - - 1,195,614 1,298,940 2,494,554
Current portion of compensated absences 30,893 54,015 6,279 1,829 93,016 Current portion of long-term debt - 75,802 - - 75,802
Total current liabilities 1,641,208 119,653 1,212,900 1,311,016 4,284,777 Noncurrent:
Compensated absences 73,870 - 3,438 - 77,308
Long-term debt 990,822 - - 990,822 -
Net pension liability 883,679 3,382,635 174,802 288,501 4,729,617 Total noncurrent liabilities 1,874,501 3,456,505 178,240 288,501 5,797,747 Total liabilities 1,994,154 5,097,713 1,391,140 1,599,517 10,082,524
DEFERRED INFLOWS OF RESOURCES
Pension deferrals 234,980 60,561 12,121 19,288 326,950
Total deferred inflows of resources 234,980 60,561 12,121 19,288 326,950
NET POSITION
Net investment in capital assets 8,953,335 763,890 3,443,405 105,806 13,266,436 Unrestricted 3,456,363 5,235,456 (1,263,408) (151,154) 7,277,257 Total net position $ 4,220,253 14,188,791 $ 2,179,997 $ (45,348) $ 20,543,693 $ Business-Type Activities – Enterprise Funds
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position The notes to the basic financial statements are an integral part of this statement. 14 Water Sewer Airport Dial-a-Ride Total
Operating revenues:
Sales and service charges $ 1,608,469 4,093,763 $ 152,679 $ 11,157 $ 5,866,068 $ Miscellaneous 10,639 - - 10,639 -
Pension revenue 137,740 738,204 36,127 6,422 918,493
Total operating revenues 4,842,606 1,746,209 188,806 17,579 6,795,200 Operating expenses:
Administration and general - 451,831 267,807 287,724 1,007,362 Transmission/collection - 3,863,928 - - 3,863,928
Treatment 1,006,228 - - - 1,006,228
Depreciation expense 161,167 427,549 280,877 36,645 906,238 Bad debt 86,490 280,788 - - 367,278
Total operating expenses 5,024,096 1,253,885 548,684 324,369 7,151,034 Operating income (loss) (181,490) 492,324 (359,878) (306,790) (355,834) Nonoperating revenues (expenses):
Taxes - 4,561 - - 4,561
Intergovernmental 4,300 - 10,000 217,945 232,245
Interest revenue 163,883 59,957 - - 223,840
Interest expense (39,395) (2) - - (39,397)
Total nonoperating revenues (expenses) 168,181 25,123 10,000 217,945 421,249 Changes in net position (13,309) 517,447 (349,878) (88,845) 65,415 Net position (deficit) - beginning 14,202,100 3,702,806 2,529,875 43,497 20,478,278 Net position (deficit) - ending $ 4,220,253 14,188,791 $ 2,179,997 $ (45,348) $ 20,543,693 $ Business-Type Activities – Enterprise Funds
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Proprietary Funds
Statement of Cash Flows
The notes to the basic financial statements are an integral part of this statement. 15 Water Sewer Airport Dial-a-Ride Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 3,854,132 $ 1,572,326 $ 156,637 $ 11,081 $ 5,594,176 Payments to suppliers (2,035,900) (702,449) (185,043) (311,425) (3,234,817) Payments to or on behalf of employees for services (1,239,310) (334,203) (46,547) 33,164 (1,586,896) Cash received from other operating revenues - 10,639 - - 10,639 Net cash provided by (used for) operating activities 535,674 589,561 (74,953) (267,180) 783,102
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Grants received - - 10,000 508 10,508
Taxes received - 4,561 - 51,870 56,431
(Loans) repayments to/from other funds - - 64,953 214,802 279,755 Net cash provided by (used for) noncapital financing activities 4,561 - 74,953 267,180 346,694
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grants received 4,300 - - - 4,300
Acquisition of capital assets (2,825,723) - - - (2,825,723) Principal paid on capital debt (6,022) (72,350) - - (78,372) Interest paid on capital debt (42) (39,830) - - (39,872) Net cash provided by (used for) capital and related
financing activities (2,827,487) (112,180) - - (2,939,667)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 138,975 47,686 - - 186,661
Net cash provided by (used for) investing activities 47,686 138,975 - - 186,661 Net increase (decrease) in cash and cash equivalents (2,098,951) 475,741 - - (1,623,210) Cash and cash equivalents - beginning 10,555,866 3,401,969 - - 13,957,835 Cash and cash equivalents - ending $ 3,877,710 8,456,915 $ - $ - $ 12,334,625 $ Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss) $ (181,490) $ 492,324 $ (359,878) $ (306,790) $ (355,834) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) by operating activities Depreciation 427,549 161,167 280,877 36,645 906,238
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 17,698 50,347 3,958 (76) 71,927 (Increase) decrease in inventory - - 47,035 - 47,035
(Increase) decrease in deferred outflows of resources from pensions (817,517) (224,696) (41,783) (80,405) (1,164,401) Increase (decrease) in accounts payable 1,023,773 (30,698) (5,005) 8,594 996,664 Increase (decrease) in deposits payable 23,459 - - - 23,459 Increase (decrease) in compensated absences 16,776 274 (5,813) 869 12,106 Increase (decrease) in net pension liability (1,462,820) (351,258) (75,050) (93,560) (1,982,688) Increase (decrease) in deferred inflows of resources from pensions 1,542,133 438,214 80,706 167,543 2,228,596 Net cash provided by (used for) operating activities 589,561 $ 535,674 $ (74,953) $ (267,180) $ 783,102 $ Business-Type Activities - Enterprise Funds
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Fiduciary Funds
Statement of Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 16 California City
Redevelopment
Successor Agency
Private Purpose
Trust Fund Custodial Fund
ASSETS
Cash $ 217,772 645,458 $
Restricted investments with fiscal agents - 1
Notes receivable - 173,000
Allowance – notes receivable - (173,000)
Land held for resale - 6,245,414
Total assets 217,772 6,890,873
DEFERRED OUTFLOWS
Deferred loss on refunding - 144,426
LIABILITIES
Due to other governments - 217,772
Due to the General Fund 50,662 -
Interest payable 80,288 -
Advance from the Housing Authority 197,000 -
Noncurrent liabilities:
Long-term debt, due within one year 535,332 -
Long-term debt, due in more than one year 26,606,770 -
Total liabilities 27,470,052 217,772
NET POSITION (DEFICIT)
$ - (20,434,753) $
Net position held in trust for the retirement of
obligations of the California City Successor Agency
to the former California City Redevelopment Agency
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Fiduciary Funds
Statement of Changes in Fiduciary Net Position
The notes to the basic financial statements are an integral part of this statement. 17 California City
Redevelopment
Successor Agency
Private Purpose
Trust Fund Custodial Fund
ADDITIONS
Tax increment $ - 943,157 $
Investment earnings:
Rental income 86,501 -
Net investment earnings 86,501 -
Collections on behalf of other governments:
Impact fees 571,979 -
Total collections on behalf of other governments - 571,979 Total additions 1,029,658 571,979
DEDUCTIONS
Administrative costs - 128,599
Interest on long-term debt - 239,288
Payments to other governments 571,979 -
Total deductions 367,887 571,979
Change in net position 661,771 -
Net position (deficit) - beginning (21,096,524) -
Net position (deficit) - ending (20,434,753) $ - $
18 NOTES TO THE BASIC FINANCIAL STATEMENTS
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
19 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of the Reporting Entity
The City of California City (the City) was incorporated in December 1965, under the laws of the State of California and enjoys all the rights and privileges applicable to a general law City. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of California (the primary government) and its component units. The blended component units discussed below are included in the City’s reporting entity because of the significance of their operational or financial relationship to the City.
Blended Component Units
The California City Community Services District is a subsidiary of California City and a detached area within City boundaries from the County service area. As a subsidiary district, the City Council of the City of California City now serves as the District’s governing board of directors. Separate financial statements are not prepared for the District.
The Industrial Development Authority was established for the purpose of issuing debt. Separate financial statements are not prepared by the Authority.
The California City Financing Authority was created for the purpose of assisting in the financing and refinancing of certain redevelopment activities of the Authority and certain public programs and projects of the City and for the purpose of aiding in the financing and refinancing of public capital improvements. Separate financial statements are not prepared for the Authority.
The California City Housing Authority was created for the purpose of managing the housing assets of the former California City Redevelopment Agency after its dissolution on February 1, 2012 due to ABX1 26. Separate financial statements are not prepared for the Authority.
Although these component units are legally separate from the City of California City, they are reported as if they were part of the primary government because the governing boards of these component units are the same as the primary government. Furthermore, the purpose of these component units is to provide a safe and more efficient service for the residents of California City.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from the business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
20 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Most revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers non-grant related revenues to be available if they are collected within 60 days of the end of the current fiscal period. However, grant revenues are recognized when measurable regardless of availability. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due.
The City’s fiduciary fund financial statements only report private-purpose trust funds. Trust funds are to account for the funds of the Successor Agency of the California City Redevelopment Agency. Private-purpose trust funds use the full accrual method of accounting and the economic resources measurement focus.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and thus have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
The City reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It is used to account for all financial resources of the general government, except those required to be accounted for in another fund.
The Street Maintenance Fund is used to account for the general upkeep and repair of street pavement and streetrelated capital projects within the City.
The Subdivision Deferred Improvement Fund is used to account for funds dedicated to water and street infrastructure within certain land tracts.
The Public Safety Services Fund accounts for voter-approved special tax (Measure A). The Measure A or Special Tax of $150 per year, per property parcel, would pay for salaries, equipment, and other needs for both the Police and Fire departments for six years beginning July 1, 2012.
The OHV Grant Fund is used to account for the Off-Highway Division Grants Program, which is an annual program that provides for well-managed off-highway vehicle (OHV) recreation in the State of California through financial assistance to develop, maintain, operate, and contribute to the well-managed high-quality OHV recreation areas, roads, trail, and amenities.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
21 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The City reports the following major proprietary funds:
The Water Fund is used to account for the operations of the City’s water utility, a self-supporting activity that is entirely financed through user charges. The costs of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.
The Sewer Fund is used to account for the operations of the City’s sewer distribution lines, which are operated in a manner similar to a private enterprise. The costs of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.
The Airport Fund is used to account for the operations of maintaining and operating the California City Airport. The costs of providing these services to the users of the airport are through user charges, rental fees, and grants provided by the Federal Aviation Administration.
The Dial-a-Ride Fund is used to account for the operations of the City’s transit service which provides transit services to the Citizens of the City. The costs for providing these services are financed partially by user fees, but primarily through grant revenue, Transportation Development Act revenue, and subsidies provided by the General Fund.
Additionally, the City reports the following fiduciary funds:
The California City Redevelopment Successor Agency Private Purpose Trust Fund is used to account for assets and liabilities of the former redevelopment agency until they are distributed to other units of state and local governments as a result of the dissolution of the redevelopment agency.
The Custodial Fund is used to account for assets held by the City as a custodian for the collection and distribution of impact fees on behalf of Mojave Unified School District and the Antelope Valley-East Kern Water Agency.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this rule are charges between the government’s proprietary fund’s function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
22 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance Cash and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.
Investments for the City, as well as for its component units, are recorded at fair value. The City’s policy is generally to hold investments until maturity or until market values equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans).
Property Tax Calendar
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days), to be used to pay liabilities of the current period. The County of Kern collects property taxes for the City. Tax liens attach annually as of 12:01 AM on the first day in January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period from July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1: the second installment is due March 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively.
Unsecured personal property taxes become due on January 1 each year and are delinquent on August 31.
Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
Capital Assets
Capital assets, which include property, plant, equipment, intangible and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of the donation.
In accordance with GASB Statement No. 34, the City has reported general infrastructure assets and as permitted under GASB Statement No. 34, will not report any infrastructure assets retroactively.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset's lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
23 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Capital Assets (Continued)
Property, plant, and equipment of the City are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings and structures 20-50
Improvements other than buildings 10-100
Machinery and equipment 3-10
Water rights 50
Furniture and fixtures 3-20
Source of supply 20-50
Transmissions 25
Water treatment 10
Right-to-Use Lease Assets
Right-to-use lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payment made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service.
Right-to-use lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life on the underlying asset unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised.
Compensated Absences
The City’s policy permits employees to accumulate earned but unused vacation and sick pay benefits. The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government-wide financial statements. The unused reimbursable leave still outstanding following an employee’s resignation or retirement is reflected as a current liability in the General Fund since it is expected to be paid with expendable available financial resources.
For proprietary funds, the liability for compensated absences is segregated between short-term and long-term in the fund from which the liability will be paid.
Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Sick leave is payable when an employee is unable to work because of illness. Upon termination, an employee will be paid for one-half of any unused sick leave. The vested portion of these compensated absences is accrued at June 30, 2023.
Unearned Revenue
Under both the accrual and modified accrual basis of accounting, revenues are recognized only when earned. Assets recognized before the earning process is complete are offset by a corresponding liability as unearned revenue. Under the modified accrual basis of accounting, revenue is recognized when earned and susceptible to accrual. Revenues are considered susceptible to accrual if they are measurable and available to finance expenditures of the current period.
Thus, governmental funds also defer revenue recognition for revenues not considered available to liquidate liabilities of the current period.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
24 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Unavailable Revenue
In the fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations. Transactions for which unavailable revenue is recorded include non-grant related governmental revenues that are measurable but are not collected within 60 days of the end of the fiscal year.
Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenditures in the current period.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Leases
Lessee: The lessee recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the governmentwide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.
The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the leased asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases, which it has determined is the prime rate at the inception of the lease. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
25 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Leases (Continued)
Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and enterprise fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses the interest rate charged to the lessees as the discount rate. When the interest rate charged to the lessees is not provided, the City generally uses the implied rate of return as the discount rate for leases. When the implied rate of return has not been determined, the City uses its estimated incremental borrowing rate which it has determined is the prime rate at the inception of the lease. The lease term includes the non-cancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
Fund Balance/Net Position
In the fund financial statements with the implementation of GASB Statement No. 54, governmental funds report fund balance as either nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, or unassigned fund balance. The following is a description of each type of fund balance classification:
Nonspendable – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted – includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a Council’s resolution or ordinance.
Assigned – includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed.
Unassigned – includes the residual amounts that have not been restricted, committed, or assigned to specific purposes.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
26 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Fund Balance/Net Position (Continued)
An individual governmental fund could include nonspendable resources and amounts that are restricted or committed, assigned, or unassigned or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which restricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.
In the government-wide financial statements, proprietary fund financial statements, and private-purpose trust fund financial statements, net position is classified as either net investment in capital assets, restricted, or unrestricted.
Net investment in capital assets – describes the portion of net position that is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debit issued to finance these assets.
Restricted net position – describes the portion of net position that is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions, and which the City cannot unilaterally alter. These principally include debt service requirements, capital projects, and deferred improvement funds restricted to low- and moderate-income housing purposes.
Unrestricted net position – describes the portion of net position that is not restricted as to use.
When both restricted and unrestricted net position are available, restricted resources are depleted first before the unrestricted resources are used.
E. Pensions
In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting (see Note 8 and the RSI section immediately following the notes to the financial statements), regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The City recognizes a net pension liability of the qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the City’s fiscal year-end or the City’s proportionate share thereof in the case of a cost-sharing multiple-employer plan.
Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose.
Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
27 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Pensions (Continued)
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of California City California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
F. Grant Revenues
Certain grant revenues are recognized when specific related expenditures have been incurred. In other grant programs, monies are virtually unrestricted as to the purpose of expenditure and are only revocable for failure to comply with prescribed compliance requirements. These revenues are recognized at the time of receipt, or earlier if susceptible to accrual criteria are met. Cash received prior to the incurrence of the related expenditure is recorded as unearned revenue.
G. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Data
General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year.
The Council conducts public meetings prior to its adoption. The budget is prepared by fund, function, and activity, and includes information on the past year, current year estimates, and requested appropriations for the next fiscal year.
Supplemental appropriations, when required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the Finance Director, City Manager, and the City Council. In most cases, expenditures may not exceed appropriations at the function level. At fiscal year-end all operating budget appropriations lapse.
Encumbrances
The City does not utilize encumbrance accounting.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
28 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B. Expenditures Over Appropriations
Governmental Funds Expenditures Appropriations Excess
Major Funds:
General Fund:
Current:
General government 3,309,556 $ 3,041,630 $ (267,926) $
Debt service:
Principal 30,591 $ - $ (30,591) $
Interest 3,448 - (3,448)
Street Maintenance Fund:
Capital outlay 828,129 $ $ 352,000 $ (476,129)
Debt service:
Interest 606 - (606)
Subdivision Deferred Improvement Fund:
Current:
Public works $ 32,971 $ (32,971) - $
C. Deficit Fund Balances and Net Positions
Balance
Governmental Funds
Major Funds:
Street Maintenance Special Revenue Fund $ 1,551,723
Public Safety Services Special Revenue Fund 447,041
OHV Grant Fund 1,696,716
Nonmajor Funds:
COPS Recovery Fund 150,466
Enterprise Funds
Major Funds:
Dial-a-Ride Fund 45,348
The City expects to eliminate these deficits through future revenues and/or transfers from the General Fund.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
29 NOTE 3 – CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds, which are held and invested by independent outside custodians through contractual agreements, are not pooled. Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and investments $ 21,980,969
Restricted cash and investments 82,578,739
Statement of Fiduciary Net Position:
Cash 863,230
Restricted investments with fiscal agents 1
Total 105,422,939 $
Cash and investments as of June 30, 2023 consisted of the following:
Cash on hand $ 2,572
Deposits with financial institutions 4,545,860
Investments 100,874,507
Total $ 105,422,939
A. Investments Authorized by the California Government Code and the City’s Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
The investment policy seeks to generate consistent returns by focusing on preservation of capital and risk management.
It seeks to achieve above-benchmark returns consistently throughout market cycles with low volatility relative to its benchmark (5-year treasury note). This strategy focuses on active duration management, sector selection, and term structure positioning.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
30 NOTE 3 – CASH AND INVESTMENTS (Continued)
A. Investments Authorized by the California Government Code and the City’s Investment Policy (Continued) Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
Local Agency Bonds 5 years None 5%
U.S. Treasury Obligations 5 years None None
State Obligations 5 years None 5%
CA Local Agency Obligations 5 years None None
US Agency Obligations 5 years None None
Bankers Acceptances 180 days 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Non-Negotiable Certificates of Deposit 5 years None 5%
Repurchase Agreements 1 year None 5%
Reverse Repurchase Agreement and Securities
Lending Agreements 92 days
20% of base
value of the
portfolio None
Medium-Term Notes 5 years 30% 5%
Mutual Funds and Money Market Mutual Funds N/A 20% 5%
Collateralized Bank Deposits 5 years None 5%
Mortgage Pass-Through Securities 5 years 20% 5%
Time Deposits 5 years None 5%
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
B. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Minimum
Authorized Maximum Credit
Investment Type Maturity Quality
U.S. Agency Obligations None None
U.S. Agency Sponsored Obligations None None
Banker's Acceptance Notes 360 days A-1
Certificates of Deposits 360 days A-1
Commercial Paper 270 days A-1
Money Market Funds N/A AAAm
Municipal Obligations None AAAm
State Obligations None A
Investment Agreements None A
Local Agency Investment Fund N/A None
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
31 NOTE 3 – CASH AND INVESTMENTS (Continued)
C. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.
One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short-term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flows and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity.
Remaining Maturity (in Months)
12 Months 13-24 25-36 37-48 49-60 More Than
Investment Type Amount or Less Months Months Months Months 60 Months State Investment Pool $ 12,733,445 $ 12,733,445 $ - $ - $ - $ - $ - Kern County Investment Pool 4,382,993 4,382,993 - - - - - Money Market Funds 6,205 6,205 - - - - -
Certificates of Deposit 1,210,066 728,127 242,937 239,002 - - - Corporate Issues 23,917,914 1,395,506 - 15,460,998 7,061,410 - - Municipal Issues 58,623,884 - 196,910 10,199,210 38,651,308 9,576,456 - Total 100,874,507 $ 17,850,770 $ 1,835,353 $ 25,899,210 $ 45,712,718 $ 9,576,456 $ - $ D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments (including investments held by bond trustee) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).
E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of the fiscal year-end and for each investment type.
Minimum
Legal Not
Investment Type Amount Rating AAA AA+ AA AA- A+ A Rated State Investment Pool $ 12,733,445 N/A $ - $ - $ - $ - $ - $ 12,733,445 - $ Kern County Investment Pool 4,382,993 N/A - - - - - 4,382,993 - Money Market Funds AAAm 6,205 - - - - - - 6,205
Certificates of Deposit 1,210,066 A-1 - - - - - 1,210,066 - Corporate Issues 23,917,914 N/A 1,470,870 - 8,373,362 - 4,372,024 9,701,658 - Municipal Issues 58,623,884 N/A 1,411,871 9,289,710 24,638,198 10,144,814 6,959,072 - 6,180,219 Total $ 9,289,710 100,874,507 $ 2,882,741 $ 24,638,198 $ 18,518,176 $ 11,331,096 $ 9,701,658 $ 24,512,928 $ CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
32 NOTE 3 – CASH AND INVESTMENTS (Continued)
F. Concentration of Credit Risk
Concentration of credit risk is the risk that the failure of any one issuer would place an undue financial burden on the City.
The investment policy of the City has stipulations that limit the investment in any one issuer 5% for total investments.
However, an exception to this policy has been made for investments in U.S. Treasuries and U.S. Agency Obligations, which have no limits place on the amount that can be invested in one issuer. As of June 30, 2023, the City did not have any investments in one issuer other than those noted as being exceptions to the policy that exceeded 5% of the City total investments.
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2023, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in non-collateralized accounts.
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded at fair market value.
I. Investment in County Investment Pool
The City is a voluntary participant in the County of Kern Investment Pool (CKIP) that is regulated by the California Government Code under the oversight of the Treasurer of the County of Kern. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by CKIP for the entire CKIP portfolio. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded at fair market value.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
33 NOTE 3 – CASH AND INVESTMENTS (Continued)
J. Fair Value Hierarchy
Investments, including derivative instruments that are not hedging derivatives, are measured at fair value on a recurring basis. Recurring fair value measurements are those that Government Accounting Standards Board (GASB) statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2023:
Level 2
Amount Inputs
Certificates of Deposit $ 1,210,066 $ 1,210,066
Corporate Issues 23,917,914 23,917,914
Municipal Issues 58,623,884 58,623,884
83,751,864 83,751,864 $
Money Market Fund 6,205
State Investment Pool 12,733,445
Kern County Investment Pool 4,382,993
17,122,643
Total Investments $ 100,874,507
Unclassified Investments
Investments by Fair Value Level
Certificates of deposits are valued based on the rates currently offered for deposits of similar remaining maturities.
Corporate and municipal Issues are valued using a matrix pricing technique that values securities based on their relationship to benchmark quoted prices.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
34 NOTE 4 – CAPITAL ASSETS
Capital assets activity of the governmental activities for the year ended June 30, 2023 was as follows:
Balance at Balance at
Governmental Activities: June 30, 2022 Increases Decreases Transfers June 30, 2023 Capital assets not being depreciated/amortized:
Land $ 2,380,797 $ - $ - $ 2,380,797 - $
Construction in progress 1,182,153 942,511 (460,493) - 1,664,171 Total capital assets not being depreciated/amortized 1,182,153 3,323,308 (460,493) - 4,044,968 Depreciable/amortizable capital assets:
Buildings and structures 13,587,268 - - - 13,587,268
Improvements other than buildings 23,012,208 460,493 - - 23,472,701 Equipment and vehicles 6,695,328 246,341 - - 6,941,669
Right-to-use leased asset 157,314 - - - 157,314
Furniture and fixtures - 7,291 - - 7,291
Total capital assets being depreciated/amortized 706,834 43,459,409 - - 44,166,243 Less accumulated depreciation/amortization for:
Buildings and structures (5,919,677) (345,190) - - (6,264,867) Improvements other than buildings (10,352,633) (886,317) - - (11,238,950) Equipment and vehicles (4,086,486) (503,151) - - (4,589,637) Right-to-use leased asset (32,774) (26,219) - - (58,993) Furniture and fixtures (7) (729) - - (736)
Total accumulated depreciation/amortization (1,761,606) (20,391,577) - - (22,153,183) Total capital assets being depreciated/amortized, net (1,054,772) 23,067,832 - - 22,013,060 Governmental activities capital assets, net $ 127,381 26,391,140 $ (460,493) $ - $ 26,058,028 $ Depreciation/amortization expense was charged to functions/programs of the governmental activities as follows:
Governmental Activities:
General government $ 232,139
Public safety 386,420
Parks and recreation 168,984
Public works 868,947
Community development 105,116
Total depreciation/amortization expense – governmental activities 1,761,606 $ CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
35 NOTE 4 – CAPITAL ASSETS (Continued)
Capital assets activity of the business-type activities for the year ending June 30, 2023 was as follows:
Balance at Balance at
Business-Type Activities: June 30, 2022 Increases Decreases Transfers June 30, 2023 Capital assets not being depreciated:
Land $ 947,003 $ - $ - $ 947,003 - $
Construction in progress 487,587 2,857,016 (214,032) 3,130,571 - Water rights - 239,472 - - 239,472
Total capital assets not being depreciated 2,857,016 1,674,062 (214,032) - 4,317,046 Depreciable capital assets:
Buildings and structures 1,150,390 - - - 1,150,390
Improvements other than buildings 30,141,353 214,032 - 30,355,385 - Equipment and vehicles 3,879,793 103,911 - 3,983,704 -
Source of supply 2,838,077 - - 2,838,077 -
Transmission 9,764,862 - - 9,764,862 -
Water treatment - 16,623 - - 16,623
Total capital assets being depreciated 47,791,098 317,943 - - 48,109,041 Less accumulated depreciation for:
Buildings and structures (1,131,869) (4,161) - - (1,136,030) Improvements other than buildings (21,099,716) (662,875) - (21,762,591) - Equipment and vehicles (3,030,525) (195,952) - (3,226,477) - Source of supply (2,243,679) (36,432) - (2,280,111) -
Transmission (9,664,377) (6,818) - (9,671,195) -
Water treatment (16,623) - - - (16,623)
Total accumulated depreciation (37,186,789) (906,238) - - (38,093,027) Total capital assets being
depreciated, net 10,604,309 (588,295) - - 10,016,014
Business-type activities capital assets, net 12,278,371 $ 2,268,721 $ (214,032) $ - $ 14,333,060 $ Depreciation expense was charged to business-type functions as follows:
Business-Type Activities:
Water $ 427,549
Sewer 161,167
Airport 280,877
Dial-a-Ride 36,645
Total depreciation expense – business-type activities 906,238 $ CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
36 NOTE 5 – INTERFUND ACTIVITY
Interfund balances for the purpose of the government-wide statements have been eliminated. The composition of interfund balances in the fund level statements as of June 30, 2023 was as follows:
A. Current Interfund Receivables/Payables
Current interfund balances are generally short-term loans to cover temporary cash deficits in various funds and are expected to be repaid shortly after the end of the fiscal year. The City’s interfund receivables and payables consisted of the following at June 30, 2023:
Due from
Other Funds
Due to
Other Funds
Governmental Funds
Major Funds:
General Fund $ 6,515,841 $ -
Street Maintenance Fund 1,437,734 -
Public Safety Services Fund 687,038 -
OHV Grant Fund 1,695,387 -
Nonmajor Funds:
COPS Recovery Fund 150,466 -
Enterprise Funds
Major Funds:
Airport Fund 1,195,614 -
Dial-a-Ride Fund 1,298,940 -
Fiduciary Funds
Private-Purpose Trust Funds - 50,662
Total $ 6,515,841 6,515,841 $
B. Long-Term Interfund Advances
Long-term advances are advances to other funds that are not expected to be repaid in one year or less. The City’s longterm interfund advances consisted of the following at June 30, 2023:
Advances to
Other Funds
Advances From
Other Funds
Governmental Funds
Nonmajor Funds:
Housing Fund $ 197,000 $ -
Fiduciary Funds
Private-Purpose Trust Fund - 197,000
Total $ 197,000 197,000 $
During the 2010-2011 fiscal year, the City’s Housing Authority loaned the City’s former redevelopment agency $985,000 to assist in the payment of its SERAF obligation in a prior year. The Successor Agency is repaying the loan with five payments of $197,000 through tax increment revenue received by the City’s Successor Agency to the former redevelopment agency.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
37 NOTE 5 – INTERFUND ACTIVITY (Continued)
C. Interfund Transfers
The following schedule summarizes the City’s interfund transfer activity for the year ended June 30, 2023:
Transfers in Transfers out
Governmental Funds:
Major Funds:
General Fund $ - $ (1) 185,279
Street Maintenance Fund 185,279 (1) -
Totals $ 185,279 185,279 $
(1) The General Fund transferred $185,279 of available Clean Up Crew Grant funds to the Street Maintenance Fund for reimbursement of eligible expenditures.
NOTE 6 – LEASES
A. Lease as Lessor
In fiscal year 2003, the City’s General Fund leased a portion of land to a third party to install a cell phone tower. The lease was initially for five years with the five options to extend for five additional years, or for a total of 30 years, of which the City anticipates will be exercised. The City received monthly payments of $800 for the duration of the initial lease period with a 10% increase during each five-year extension. The City recognized $7,026 in lease revenue and $4,637 in interest revenue during the current fiscal year. As of June 30, 2023, the City’s receivable for lease payments was $96,777. Also, the City has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term.
As of June 30, 2023, the balance of the deferred inflow of resources was $66,749.
B. Lease as Lessee
In fiscal year 2021, the City’s General Fund entered into a five-year lease agreement as lessee for the acquisition and use of golf carts. An initial lease liability was recorded in the amount of $157,314 during fiscal year 2021. As of June 30, 2023, the value of the lease liability was $89,429. The City is required to make monthly principal and interest payments of $2,837. The lease has an interest rate of 3.25%. The golf carts have a six-year estimated useful life. The value of the rightto-use asset at the end of the current fiscal year was $98,321 and had accumulated amortization of $58,993.
The future principal and interest lease payments as of June 30, 2023, are as follows:
Fiscal Years Ending
June 30 Principal Interest Total
2024 $ 31,600 $ 2,438 $ 34,038
2025 32,643 1,396 34,039
2026 342 25,187 25,529
Totals 89,430 $ 4,176 $ 93,606 $
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
38 NOTE 7 – LONG-TERM OBLIGATIONS
A. Governmental Activities Long-Term Debt
The following is a summary of long-term liability transactions of the City for governmental activities for the year ended June 30, 2023:
Balance Balance Due Within
June 30, 2022 Additions Repayments June 30, 2023 One Year Governmental Activities:
Direct Borrowings
Financed purchase – equipment $ - 40,875 $ (40,875) $ - $ - $ Total Direct Borrowings 40,875 (40,875) - - -
Compensated Absences 277,295 810,093 (301,020) 786,368 360,015 Total $ 277,295 850,968 $ (341,895) $ 786,368 $ 360,015 $ Financed Purchase – Equipment
In December 2019, the City entered into a lease for a grader that is classified as a financed purchase. The original value of the equipment was $226,118 and includes an interest rate of 7.10% with a maturity date in November 2022. The lease was paid off during the fiscal year ended June 30, 2023. After the final payment was made, the title on the grader was transferred to the City.
B. Business-Type Activities Long-Term Debt
The following is a summary of long-term liability transactions of the City for business-type activities for the year-ended June 30, 2023:
Balance Balance Due Within
June 30, 2022 Additions Repayments June 30, 2023 One Year Business-Type Activities:
Direct Borrowings
2015 Sewer Note $ 1,138,974 $ (72,350) - $ $ 1,066,624 $ 75,802 Financed purchase – equipment - 6,022 (6,022) - -
Total Direct Borrowings - 1,144,996 (78,372) 1,066,624 75,802 Compensated Absences 65,262 158,218 (53,156) 170,324 106,000 Total $ 65,262 1,303,214 $ (131,528) $ 1,236,948 $ 181,802 $ CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
39 NOTE 7 – LONG-TERM OBLIGATIONS (Continued)
B. Business-Type Activities Long-Term Debt (continued)
2015 Sewer Note
On April 1, 2015, the City entered into a loan agreement with TPB Investments, Inc., a wholly owned subsidiary of Western Alliance Bank for $1,579,771, bearing interest of 3.16% and payable semi-annually on November 1 and May 1, maturing November 1, 2033. The loan proceeds were used to advance refund the 2003 lease revenue bonds which had been used to reimburse the City for costs incurred in connection with the expansion of the City’s wastewater treatment plan and related facilities. The loan is secured by a pledge and lien on net revenues of the Sewer Fund. The outstanding principal balance of the 2015 Sewer note at June 30, 2023 was $1,066,624. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the loan agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable.
The following is a schedule of future estimated minimum payments related for the 2015 Sewer Note described above:
Year Ending
June 30 Principal Interest Total
2024 $ 75,802 $ 37,137 $ 112,939
2025 79,920 34,326 114,246
2026 83,962 31,368 115,330
2027 87,928 28,265 116,193
2028 91,815 25,021 116,836
2029-2033 524,144 71,336 595,480
2034 2,222 123,053 125,275
Totals $ 229,675 1,066,624 $ 1,296,299 $
2015 Sewer Note
Financed Purchase – Equipment
In August 2019, the City entered into a lease agreement for a backhoe that is classified as a financed purchase. The original value of the equipment was $98,632 and includes an interest rate of 7.10% with a maturity date in July 2022. The lease was paid off during the fiscal year ended June 30, 2023. After the final payment was made, the title on the backhoe was transferred to the City.
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 of the Notes to the Basic Financial Statements. For business-type activities, the liability will be paid in future years from governmental funds and enterprise funds, as applicable.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
40 NOTE 8 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) A. General Information about the Pension Plan
Plan Description – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple-Employer Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools.
The City sponsors seven rate plans (three miscellaneous and four safety.) Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement Law.
The rate plan provisions and benefits in effect at June 30, 2023 are summarized as follows:
Miscellaneous Miscellaneous Miscellaneous
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 - On or after
Hire date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 60 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 3.0% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.000% 7.000% 6.750% Required employer contribution rates 15.250% 9.120% 7.470% Safety Safety Safety
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 - On or after
Hire Date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 3.0% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9.000% 9.000% 13.000% Required employer contribution rates 23.750% 19.270% 12.780% Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $1,561,309 for the fiscal year ended June 30, 2023.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
41 NOTE 8 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) A. General Information about the Pension Plan (Continued) Contributions – Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
The City’s contributions to the plan that were recognized as a part of pension expense for the year ended June 30, 2023 were $2,129,657.
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $19,014,337.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2021 and 2022 was as follows:
Proportion - June 30, 2021 0.1752%
Proportion - June 30, 2022 0.1646%
Change - Increase (Decrease) -0.0106%
For the year ended June 30, 2023, the City recognized pension expense of $288,648. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to the measurement date $ 2,307,815 $ - Changes of assumptions 1,933,083 -
Differences between actual and expected experience 580,957 231,529 3,246,844 -
661,114 327,493
770,493 68,300
Total $ 1,329,515 8,798,113 $
Net difference between projected and actual earning on plan investments
Change in employer's proportion
Differences between the employer's actual contributions and the employer's proportionate share of contributions
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
42 NOTE 8 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions $2,307,815 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
June 30
2024 $ 1,357,493
2025 1,134,800
2026 685,002
2027 1,983,488
2028 -
Thereafter -
C. Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%(1)
Mortality Derived using CalPERS' Membership
Data for all Funds(2)
(1)
Net of pension plan investment expenses, including inflation (2) The mortality Table was developed based on CalPERS specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020.
D. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
43 NOTE 8 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) D. Discount Rate (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
Asset Class(1)
New
Strategic
Allocation
Real Return
Years
1-10(2)
Global equity - cap-weighted 30% 4.45%
Global equity non-cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Discount Rate -1%
5.90%
Current Discount Rate
6.90%
Discount Rate +1%
7.90%
$ 19,014,337 28,260,319 $ 11,432,634 $
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
44 NOTE 8 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) F. Payable to the Pension Plan
The City did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.
NOTE 9 – SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES The City is self-insured for the first $100,000 on each general liability claim. The insurance coverage in excess of selfinsured amount is provided by the California Intergovernmental Risk Authority (CIRA), formerly known as Public Agency Risk Sharing Authority of California (PARSAC), up to a limit of $40,000,000 per occurrence, with some sublimits for claims covered under CIRA’s Memorandum of Coverage.
Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The City funds all claims payable, including those incurred but not reported, in the yearly deposit it pays to PARSAC, except for its self-insured retention.
Effective January 29, 1998, the City became a member of the PARSAC, now known as CIRA, a public entity risk pool currently operating as a common risk management and self-insurance program for 50 California municipalities/districts.
The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for formation of CIRA provides that the pool will be self-sustaining through member premiums. The City continues to carry commercial insurance for all other risks of loss, including workers’ compensation insurance, property insurance with a $10,000 deductible and crime insurance with a $25,000 deductible.
CIRA publishes its own financial report for the fiscal year ending June 30, 2023, which can be obtained from California Intergovernmental Risk Authority, Folsom, California. There have been no significant changes in insurance coverage from the prior fiscal year. During the past three years, the amount of settlements has not exceeded the amount of insurance coverage.
NOTE 10 – CONTINGENCIES
A. Litigation
The City is currently a party to various pending lawsuits and claims. These legal matters encompass a range of issues and are associated with expected losses that fall within the range of $0 to $12,500,000. The outcome of these legal proceedings remains uncertain, and the ultimate financial impact on the City will depend on their resolution.
Furthermore, the City participates in the CIRA for general liability coverage. In the event of any adverse financial outcomes resulting from these cases, the City has corresponding coverage in these insurance policies, which will help mitigate the financial impact exceeding the first $100,000.
For additional information regarding the City's risk management strategy and insurance coverage, please refer to Note 9 in the financial statements.
The City is involved in various lawsuits including litigation with the California Department of Finance (DOF) in regard to the loan between the former redevelopment agency and the Subdivision Deferred Improvement Fund (SDI). See additional information in Note 11. If the DOF prevails, the possible amount of loss could be the entire loan amount including principal and interest. Although the outcome of the various lawsuits is not presently determinable, with the possible exception of the litigation with the DOF, it is the opinion of management and legal counsel that the resolution of these matters will not have a material adverse effect.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
45 NOTE 10 – CONTINGENCIES (Continued)
B. Grant Programs
The City has received various state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.
Proposition 218, which was approved by the voters in November 1996, will regulate the City’s ability to impose, increase, and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments and fees subject to the provisions of Proposition 218 provides that these taxes, assessments and fees are subject to the voter initiative process and may be rescinded in the future by voters. Therefore, the City’s ability to finance the services for which the taxes, assessments and fees were imposed may be significantly impaired. At this time, it is uncertain how Proposition 218 will affect the City’s ability to maintain or increase the revenue from taxes, assessments and fees.
C. Contingencies
On January 8, 1998, the City Council passed Ordinance No. 98-552, which allows an annual transfer not to exceed $290,000 from the Subdivision Deferred Improvement (SDI) Fund to maintain SDI improvements and pay for administrative expenses as permitted by the terms and conditions stated in said ordinance. During the 2015-2016 fiscal year, management reviewed current and prior year’s financial records and determined that the General Fund and the Street Maintenance Fund incurred expenditures as permitted by Article 3, Section 9-6303 (1)-(4), but did not accumulate and transfer the allowable expenditures. Management plans to perform an assessment in future years to determine the retroactive and cumulative maximum allowable year-to-date transfers per the aforementioned section, which may result in a material transfer out of the SDI Fund and into the General Fund and/or Street Maintenance Fund. As of June 30, 2023, no determination has been made with respect to the prior year's accumulation of allowable expenditures.
Measure C, a special tax requiring an annual payment of $182.50 per property parcel, was approved by voters for six years beginning on June 1, 2018. The purpose of Measure C is to pay for salaries, equipment, and other needs of the Police and Fire departments at a 50%/50% split. Measure C is expiring on June 30, 2024. During the fiscal year ended June 30, 2023, the City received $6,154,479 as a result of Measure C.
NOTE 11 – SUCCESSOR AGENCY TRUST FUND
On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with Assembly Bill 1X26 (the Bill) which dissolved all redevelopment agencies in the State of California.
Under the control of an oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution of the redevelopment agency (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
Successor agencies are only allocated revenue in the amount that is necessary to pay estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
After the date of the dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
46 NOTE 11 – SUCCESSOR AGENCY TRUST FUND (Continued)
Long-Term Obligations
The following is a schedule of changes in long-term debt for the fiscal year ended June 30, 2023:
Balance Balance Due Within
June 30, 2022 Additions Repayments June 30, 2023 One Year Direct Borrowings:
City Loans - Principal $ 9,877,142 $ - $ 9,877,142 - $ $ - City Loans - Interest - 10,807,082 - 10,807,082 -
Total Direct Borrowings: 20,684,224 - 20,684,224 - -
2014 Tax Allocation Refunding Bond 6,655,000 (480,000) - 6,175,000 510,000 - 308,210 (25,332) 282,878 25,332
Total $ - 27,647,434 $ (505,332) $ 27,142,102 $ 535,332 $ 2014 Tax Allocation Refunding Bond - Premium
A description of long-term debt outstanding of the Successor Agency as of June 30, 2023 follows.
City Loans
The City advanced the Successor Agency funds for operations and has paid for costs at various times since the establishment of the Redevelopment Agency. Costs paid on behalf of the Successor Agency do not have a stated interest rate. The loans made to the Agency bear interest at various rates as specified below:
SDI Fund Land Note – Authorized amount $4,500,000; interest at 6.6% per annum.
SDI Fund Treatment Plant Note - Authorized amount $5,902,000; interest at 7.3% per annum. Principal and interest are to be repaid in 20 installments, commencing July 1, 2003.
At June 30, 2023, the principal balance outstanding was $9,877,142 and accrued unpaid interest was $10,807,082. The Department of Finance has disallowed payments for these loans and an allowance for uncollectible debt has been established in the Subdivision Deferred Improvements fund for the entire balance. Additionally, as a result of the DOF’s determination, the City stopped accruing interest on the debt. However, the City is still attempting to obtain authorization from the Department of Finance allowing repayment by the Successor Agency to the City. Accordingly, the City has not removed the loans and related accumulated interest from the Successor Agency’s balance sheet. 2014 Tax Allocation Refunding Bonds
On August 6, 2014, the Agency issued $9,735,000 Successor Agency to the City of California City Redevelopment Agency California City Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2014. Interest on the bonds is payable semi-annually on September 1 and March 1, maturing on September 1, 2034 and have various interest rates of 3.00% to
5.00%. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the loan agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable. The bond proceeds were used to advance refund the 2000 Series A, Subordinated 2000 Series A, and Tax Allocation Refunding Bonds 2000 Series B. The outstanding principal balance of the 2014 Refunding Bonds at June 30, 2023 was $6,175,000.
CITY OF CALIFORNIA CITY | JUNE 30, 2023
Notes to the Basic Financial Statements
47 NOTE 11 – SUCCESSOR AGENCY TRUST FUND (Continued)
Long-Term Obligations (Continued)
The following is a schedule of future estimated minimum payments related for the 2014 Tax Allocation Refunding Bonds described above:
Year Ending
June 30 Principal Interest Total
2024 $ 510,000 $ 234,613 $ 744,613
2025 525,000 208,863 733,863
2026 550,000 190,363 740,363
2027 565,000 173,363 738,363
2028 585,000 154,475 739,475
2029-2033 2,630,000 441,098 3,071,098
2034-2035 32,600 810,000 842,600
Total $ 1,435,375 6,175,000 $ 7,610,375 $
48 REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of Proportionate Share of Net Pension Liability Last 10 Years* 49 2015 2016 2017 2018 2019 2020 2021 2022 2023
0.1749% 0.1727% 0.1610% 0.1558% 0.1554% 0.1526% 0.1507% 0.1752% 0.1646% $ 11,850,799 10,984,722 $ 13,935,222 $ 15,447,887 $ 14,979,476 $ 15,641,062 $ 16,395,783 $ 9,474,086 $ 19,014,337 $ $ 4,978,479 4,653,159 $ 5,585,009 $ 5,426,300 $ 5,648,964 $ 5,890,911 $ 6,179,728 $ 6,064,302 $ 6,094,267 $ Proportionate share of the net pension liability as
236.07% 238.04% 249.51% 284.69% 265.17% 265.51% 265.32% 156.23% 312.00% Plan fiduciary net position as a percentage
76.23% 74.91% 69.05% 68.60% 71.02% 70.88% 71.63% 83.82% 71.35% NOTES TO SCHEDULEChanges in Benefit Terms – None
*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.
Proportion of the net pension liabilityProportionate share of the net pension liabilityCovered payroll percentage of covered payroll of the total pension liabilityChanges in Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Schedule of Contributions Last 10 Years 50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially required contribution
$ 1,218,497 $ 1,334,533 $ 1,622,773 $ 1,717,344 $ 1,795,425 $ 1,965,332 $ 2,233,301 $ 1,990,714 $ 2,129,657 $ 2,307,815 1,334,533 1,218,497 1,622,773 1,717,344 1,795,425 1,965,332 2,233,301 1,990,714 2,129,657 2,307,815 $ - - $ - $ - $ - $ - $ - $ - $ - $ - $
$ 4,978,479 4,653,159 $ 5,585,009 $ 5,426,300 $ 5,648,964 $ 5,890,911 $ 6,179,728 $ 6,064,302 $ 6,094,267 $ 6,275,150 $
26.19% 26.81% 29.06% 31.65% 31.78% 33.36% 36.14% 32.83% 34.95% 36.78% (actuarially determined) determined contributionsContribution deficiency (excess)Covered payrollContributions as a percentage of covered payrollContributions in relation to the actuarially CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Budgetary Comparison Schedules
General Fund
51 Variance with
Original Final Final Budget
REVENUES
Taxes 4,627,500 $ 4,627,500 $ $ 4,239,800 $ (387,700)
Licenses and permits 1,715,800 1,715,800 990,176 (725,624) Intergovernmental 3,175,464 3,175,464 1,193,595 (1,981,869) Charges for services 530,100 530,100 846,474 316,374
Fines and forfeitures 12,100 12,100 16,955 4,855
Use of money and property 37,900 37,900 171,726 133,826 Miscellaneous 132,100 132,100 (30,093) 102,007
Total revenues 10,230,964 10,230,964 7,560,733 (2,670,231)
EXPENDITURES
Current:
General government 3,041,630 3,041,630 3,309,556 (267,926) Parks and recreation 1,266,200 1,266,200 1,072,835 193,365 Public works 1,755,600 1,755,600 1,597,761 157,839
Capital outlay 691,200 691,200 503,543 187,657
Debt service:
Principal - - 30,591 (30,591)
Interest - - 3,448 (3,448)
Total expenditures 6,754,630 6,754,630 6,517,734 236,896 Excess (deficiency) of revenues
over (under) expenditures 3,476,334 3,476,334 1,042,999 (2,433,335)
OTHER FINANCING SOURCES (USES)
Transfers in 671,700 671,700 (671,700) -
Transfers out (1,578,400) (1,578,400) 1,393,121 (185,279) Total other financing sources (uses) (906,700) (906,700) (185,279) 721,421 Net change in fund balance 2,569,634 2,569,634 857,720 (1,711,914) Fund balances - beginning 11,907,218 11,907,218 11,907,218 - Fund balance - ending $ 14,476,852 14,476,852 $ 12,764,938 $ (1,711,914) $ Budgeted Amounts Actual
Amount
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Budgetary Comparison Schedules
Street Maintenance Special Revenue Fund
52 Variance with
Original Final Final Budget
REVENUES
Intergovernmental 1,077,000 $ 1,077,000 $ 1,160,246 $ 83,246 $ Charges for services 15,000 15,000 12,113 (2,887)
Use of money and property 500 500 - (500)
Miscellaneous 1,000 1,000 - (1,000)
Total revenues 1,093,500 1,093,500 1,172,359 78,859
EXPENDITURES
Current:
Public works 1,083,750 1,083,750 947,814 135,936
Capital outlay 352,000 352,000 828,129 (476,129)
Debt service:
Principal 84,000 84,000 34,146 49,854
Interest - - 606 (606)
Total expenditures 1,519,750 1,519,750 (290,945) 1,810,695 Excess (deficiency) of revenues
over (under) expenditures (426,250) (426,250) (212,086) (638,336)
OTHER FINANCING SOURCES (USES)
Transfers in 483,100 483,100 185,279 (297,821)
Total other financing sources (uses) 483,100 483,100 185,279 (297,821) Net change in fund balance 56,850 56,850 (453,057) (509,907) Fund balance (deficit) - beginning (1,098,666) (1,098,666) (1,098,666) - Fund balance (deficit) - ending (1,041,816) $ (1,041,816) $ (1,551,723) $ (509,907) $ Budgeted Amounts Actual
Amount
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Budgetary Comparison Schedules
Subdivision Deferred Improvement Special Revenue Fund
53 Variance with
Original Final Final Budget
REVENUES
Use of money and property $ - - $ (543,968) $ (543,968) $ Total revenues - - (543,968) (543,968)
EXPENDITURES
Current:
Public works - - 32,971 (32,971)
Total expenditures - - 32,971 (32,971)
Excess of revenues over (under) expenditures - - (576,939) (576,939) Fund balances - beginning 83,899,715 83,899,715 83,899,715 - Fund balances - ending 83,899,715 $ 83,899,715 $ 83,322,776 $ (576,939) $ Budgeted Amounts Actual
Amount
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Budgetary Comparison Schedules
Public Safety Services Special Revenue Fund
54 Variance with
Original Final Final Budget
REVENUES
Taxes $ 6,400,000 $ 6,400,000 $ 6,518,084 $ 118,084
Licenses and permits 31,500 31,500 16,288 (15,212)
Intergovernmental 60,000 60,000 49,401 (10,599)
Charges for services 141,500 141,500 479,644 338,144
Fines and forfeitures 60,000 60,000 54,769 (5,231)
Use of money and property 32,000 32,000 27,648 (4,352)
Miscellaneous 61,000 61,000 83,608 22,608
Total revenues 6,786,000 6,786,000 7,229,442 443,442
EXPENDITURES
Current:
Public safety 7,674,600 7,674,600 7,590,937 83,663
Capital outlay 36,000 36,000 3,049 32,951
Total expenditures 7,710,600 7,710,600 116,614 7,593,986 Excess (deficiency) of revenues
over (under) expenditures (924,600) (924,600) 560,056 (364,544)
OTHER FINANCING SOURCES (USES)
Transfers in 984,600 984,600 (984,600) -
Total other financing sources (uses) 984,600 984,600 (984,600) - Net change in fund balance 60,000 60,000 (364,544) (424,544) Fund balance (deficit) - beginning (82,497) (82,497) (82,497) - Fund balance (deficit) - ending (22,497) $ (22,497) $ (447,041) $ (424,544) $ Budgeted Amounts Actual
Amount
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Budgetary Comparison Schedules
OHV Grant Special Revenue Fund
55 Variance with
Original Final Final Budget
REVENUES
Intergovernmental $ 1,363,000 1,363,000 $ 16,404 $ (1,346,596) $ Total revenues 1,363,000 1,363,000 16,404 (1,346,596)
EXPENDITURES
Current:
Public safety 963,000 963,000 600,055 362,945
Total expenditures 963,000 600,055 963,000 362,945
Excess (deficiency) of revenues
over (under) expenditures 400,000 400,000 (583,651) (983,651) Fund balance - beginning (deficit) (1,113,065) (1,113,065) (1,113,065) - Fund balance - ending (deficit) (713,065) $ (713,065) $ (1,696,716) $ (983,651) $ Budgeted Amounts Actual
Amount
56 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES CITY OF CALIFORNIA CITY | JUNE 30, 2023
Nonmajor Governmental Funds
Combining Balance Sheet
57 Special Revenue Funds
Supplemental Public Aspen Mall
Special Law Safety Maintenance
Tax Enforcement Augmentation District Housing
ASSETS
Cash and investments 18,073 $ 321,062 $ 356,801 $ 191,005 $ 1,610,859 $ Receivables:
Interest 71 - - 756 -
Taxes - - 19,892 - -
Intergovernmental - - - - 51,552
Advance to Successor Agency - - - - 197,000
Total assets 18,144 $ 321,062 $ 376,693 $ 191,761 $ 1,859,411 $
LIABILITIES
Accounts payable - $ - $ - $ 155,278 $ - $
Deposits payable - - - - 52,930
Due to other funds - - - - -
Total liabilities - - - 155,278 52,930
FUND BALANCES
Restricted for:
Public safety - 321,062 376,693 - -
Parks and recreation - - - - -
Community development - - - 36,483 1,806,481
Assigned for:
Community development 18,144 - - - -
Unassigned - - - - -
Total fund balances (deficits) 18,144 321,062 376,693 36,483 1,806,481 Total liabilities and fund balances 18,144 $ 321,062 $ 376,693 $ 191,761 $ 1,859,411 $ CITY OF CALIFORNIA CITY | JUNE 30, 2023
Nonmajor Governmental Funds
Combining Balance Sheet
(Continued)
58 Special Revenue Funds Total
Nonmajor
Parks and COPS OHV EMS Proposition 39 Governmental
Recreation Recovery Grant AB109 Funds
ASSETS
Cash and investments 12,691 $ - $ 394 $ 1,148 $ 2,512,033 $ Receivables:
Interest - - 2 - 829
Taxes - - - - 19,892
Intergovernmental - - - - 51,552
Advance to Successor Agency - - - - 197,000
Total assets 12,691 $ - $ 396 $ 1,148 $ 2,781,306 $
LIABILITIES
Accounts payable - $ - $ - $ - $ 155,278 $
Deposits payable - - - - 52,930
Due to other funds - 150,466 - - 150,466
Total liabilities - 150,466 - - 358,674
FUND BALANCES
Restricted for:
Public safety - - 396 1,148 699,299
Parks and recreation 12,691 - - - 12,691
Community development - - - - 1,842,964
Assigned for:
Community development - - - - 18,144
Unassigned - (150,466) - - (150,466)
Total fund balances (deficits) 12,691 (150,466) 396 1,148 2,422,632 Total liabilities and fund balances 12,691 $ - $ 396 $ 1,148 $ 2,781,306 $ CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 59 Special Revenue Funds
Supplemental Public Aspen Mall
Special Law Safety Maintenance
Tax Enforcement Augmentation District Housing
REVENUES
Taxes $ 5,309 $ 268,971 - $ $ 41,264 $ -
Intergovernmental 165,271 - - - 221
Charges for services - - 444,444 -
Use of money and property 230 - 3,063 - 2,603
Miscellaneous - - - - 51,681
Total revenues 5,539 165,271 268,971 44,327 498,949
EXPENDITURES
Current:
Public safety - 64,995 - - -
Community development - - 185,263 - 453,015
Capital outlay - - - - 31,869
Total expenditures - - 64,995 185,263 484,884
165,271 5,539 203,976 (140,936) 14,065
Fund balances (deficits) - beginning 12,605 155,791 172,717 177,419 1,792,416 Fund balances (deficits) - ending 18,144 $ 321,062 $ 376,693 $ 36,483 $ 1,806,481 $ Excess (deficiency) of revenues over
(under) expenditures
CITY OF CALIFORNIA CITY | FOR THE YEAR ENDED JUNE 30, 2023 Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
60 Special Revenue Funds Total
Nonmajor
Parks and COPS OHV EMS Proposition 39 Governmental
Recreation Recovery Grant AB109 Funds
REVENUES
Taxes - $ - $ - $ - $ 315,544 $
Intergovernmental - - - 1,610 167,102
Charges for services - - - - 444,444
Use of money and property - - 6 - 5,902
Miscellaneous - - - - 51,681
Total revenues - - 6 1,610 984,673
EXPENDITURES
Current:
Public safety - - - 544 65,539
Community development - - - - 638,278
Capital outlay - - - - 31,869
Total expenditures - - - 544 735,686
- - 6 1,066 248,987
Fund balances (deficits) - beginning 12,691 (150,466) 390 82 2,173,645 Fund balances (deficits) - ending 12,691 $ (150,466) $ 396 $ 1,148 $ 2,422,632 $ Excess (deficiency) of revenues over
(under) expenditures
CITY OF CALIFORNIA CITY
MANAGEMENT REPORT
AND
AUDITOR’S
COMMUNICATION LETTER
FOR THE YEAR ENDED JUNE 30, 2023
CITY OF CALIFORNIA CITY
MANAGEMENT REPORT AND AUDITOR’S COMMUNICATION LETTER
FOR THE YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Page
Required Communications .................................................................................................................. 1 - 2 Independent Auditor’s Report on Internal Controls over Financial Reporting, Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................... 3 - 4 901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
To the City Council of the
City of California City
California City, California
We have audited the financial statements of the City of California City (the “City”), for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter dated November 21, 2023. Professional standards require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2023. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Accounting estimates are used in determining the depreciable lives and methods used for capital assets, compensated absences, funding progress of CalPERS pension liability, and certain lease terms not explicitly present in lease agreement(s). We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were the disclosures about the employee retirement plan disclosed in Note 8 to the financial statements.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We did not identify any significant audit adjustments.
2 Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated July 17, 2024.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings and Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
July 17, 2024
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.
Ryan P. Jolley C.P.A.
Darryl L. Smith C.P.A.
Luis A. Perez C.P.A.
Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council of the
City of California City
California City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of California City, California (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated July 17, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for determining audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal controls exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal controls, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 4 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Bryant L. Jolley, CPA
July 17, 2024
1 Item: NB2
COUNCIL AGENDA ITEM
August 13, 2024
TO: Mayor and City Council
FROM: Daryl A. Betancur, City Clerk
SUBJECT: Special Parcel Tax Election Certification – July 30, 2024 RECOMMENDATION:
1. Approve and Adopt Resolution No. 24-3045, A Resolution of the City Council of the City of California City, California, Reciting the Fact of the Special Municipal Election Held on Tuesday, July 30,2024, Declaring the Results and Such other Matters as Provided by Law.
DISCUSSION:
On Tuesday, April 30, 2024, the City Council adopted Resolution No. 24-3024, ordering a special municipal election to be held on July 30, 2024, for the purpose of submitting to the voters a ballot measure on a special parcel tax to finance police, fire, and emergency medical services only.
Accordingly, the Special Election was held on Tuesday, July 30th, 2024, following the provisions set forth in the California elections code. Now, staff is requesting the City Council to certify the results of the canvass of the election conducted by the Elections Division of the County of Kern, County Clerk.
The results of the Special Municipal Elections are hereby attached as Exhibit “A”.
RECOMMENDATION: Staff Requests that the City Council Adopt Resolution No. 24-3045, A Resolution of the City Council of the City of California City, California, Reciting the Fact of the Special Municipal Election Held on Tuesday, July 30, 2024, Declaring the Results and Such Other Matters as Provided by Law.
ATTACHMENTS:
Resolution No. 24-3045
Exhibit “A’ Official Canvas Results
STATEMENT OF VOTES CAST
CALIFORNIA CITY
SPECIAL GENERAL ELECTION
July 30, 2024
AIMEE X. ESPINOZA
AUDITOR-CONTROLLER-COUNTY CLERK-ROV
KERN COUNTY, CALIFORNIA
INDEX
Final Summary i
Clerk’s Certificate Result of Canvass ii
Voter Registration by SOS District Exhibit A
District Registration by Party Exhibit B
List of Polling Sites with Voting Precincts Exhibit C
Cross Reference Voting Precinct Order Exhibit D
Cross Reference Regular Precinct Order Exhibit E
Turnout 1
MEASURES SUBMITTED TO THE VOTERS
Measure B 2
CERTIFICATE OF COUNTY CLERK AS TO RESULT OF THE CANVASS
OF THE CALIFORNIA CITY SPECIAL ELECTION
ST ATE OF CALIFORNIA } ss
COUNTY OF KERN
HELD JULY 30, 2024
I, AIMEE X. ESPINOZA, Auditor-Controller-County Clerk, County of Kem, State of California, HEREBY CERTIFY that I have canvassed the returns of the votes cast at the CALIFORNIA CITY SPECIAL ELECTION held on July 30, 2024 for the measure that was submitted to the vote of the voters, and that the Statement of Votes Cast, to which this certificate is attached is full, true, and correct.
IN WITNESS HEREOF I do hereby set my hand and the Official Seal of the County of Kern this 6
th day of August 2024.
AIMEE X. ESPINOZA
Auditor-Controller-County Clerk
County of Kern
State of California
Voter Registration by SOS District
Voter Registration Counts Last Updated 8/6/2024
DEM REP AI GRN LIB PF MIS NPP Total
150001 Kern County 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 Check Total 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 152020 20th Congressional District 57,778 113,158 12,245 770 3,557 1,157 2,706 41,667 233,038 152022 22nd Congressional District 91,509 50,131 8,054 705 2,163 2,213 3,928 47,404 206,107 152023 23rd Congressional District 3,014 3,290 570 50 124 95 180 1,999 9,322 Check Total 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 153012 12th Senatorial District 63,313 120,222 13,182 836 3,804 1,310 3,024 45,378 251,069 153016 16th Senatorial District 88,988 46,357 7,687 689 2,040 2,155 3,790 45,692 197,398 Check Total 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 154032 32nd Assembly District 54,923 110,075 11,650 716 3,376 1,079 2,580 39,457 223,856 154034 34th Assembly District 7,275 8,491 1,362 113 361 205 393 5,183 23,383 154035 35th Assembly District 90,103 48,013 7,857 696 2,107 2,181 3,841 46,430 201,228 Check Total 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 151001 1st Supervisorial District 26,066 59,647 5,843 342 1,721 492 1,124 19,284 114,519 151002 2nd Supervisorial District 28,990 37,691 4,972 376 1,388 621 1,367 20,107 95,512 151003 3rd Supervisorial District 31,227 36,312 4,700 336 1,410 747 1,631 18,394 94,757 151004 4th Supervisorial District 32,201 19,635 2,592 213 666 683 1,118 16,628 73,736 151005 5th Supervisorial District 33,817 13,294 2,762 258 659 922 1,574 16,657 69,943 Check Total 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 156001 City of Arvin 3,287 916 188 17 44 86 95 1,536 6,169 156002 City of Bakersfield 76,974 75,985 9,574 691 2,636 1,554 3,224 44,465 215,103 156003 City of California City 2,411 2,203 420 35 92 63 136 1,497 6,857 156004 City of Delano 9,036 3,220 535 46 107 173 339 4,052 17,508 156005 City of Maricopa 71 303 28 1 7 2 6 71 489
156006 City of McFarland 2,458 893 119 13 41 54 71 1,161 4,810 156007 City of Ridgecrest 3,879 7,348 938 78 347 104 199 3,345 16,238 156008 City of Shafter 3,703 3,228 356 29 119 74 122 2,045 9,676 156009 City of Taft 503 2,012 190 16 47 29 46 588 3,431 156010 City of Tehachapi 1,188 2,563 348 27 110 25 71 1,080 5,412 156011 City of Wasco 3,648 2,045 293 26 86 108 127 2,016 8,349 Check Total 107,158 100,716 12,989 979 3,636 2,272 4,436 61,856 294,042 155001 Board Of Equalization 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 Check Total 152,301 166,579 20,869 1,525 5,844 3,465 6,814 91,070 448,467 157001 Unincorporated Area 45,143 65,863 7,880 546 2,208 1,193 2,378 29,214 154,425 Check Total 45,143 65,863 7,880 546 2,208 1,193 2,378 29,214 154,425 Political Subdivision
PDMR010 - Voter Registration by SOS District
Printed: 08/06/2024 9:32:08AM