Agenda packet, regular meeting — Ojai City Council, July 14, 2026 (part 2 of 2)

Administrative Report
TO: Honorable City Council
FROM: Ben Harvey, City Manager
Bethany Burgess, City Attorney
MEETING DATE: July 14, 2026
SUBJECT: County of Ventura Civil Grand Jury Report Regarding Ojai Permanent Supportive Housing Project (Legal Requirement)

RECOMMENDATION

1. Discuss report issued by County of Ventura Civil Grand Jury regarding the Ojai Permanent Supportive Housing Project on June 25, 2026.

2. Direct the City Attorney to prepare a draft response to the report for further consideration by the City Council at a regular or special meeting of City Council in August, 2026.

DISCUSSION
On June 25, 2026, the County of Ventura Civil Grand Jury (“Civil Grand Jury”) released a report regarding the Ojai Permanent Supportive Housing Project pertaining to best practices to ensure a fair and competitive selection process (Attachment A). According to the report, on April 16, 2025, the Civil Grand Jury received “a public complaint alleging that the Ojai City Council authorized the city manager to negotiate a contract with DignityMoves for around $10 million for the construction of a 30-unit permanent supportive housing complex for people experiencing homelessness without obtaining competitive bids based on the lowest price as required by law for construction projects of this size.” The Civil Grand Jury investigated the complaint and based on the summary provided in the report, concluded that “[t]here are lessons to be learned and recommendations that should be followed after a Ventura County Civil Grand Jury investigation found that the City of Ojai selected a vendor for inclusion in a grant application, and later awarded a contract to that vendor, without conducting a fair and competitive selection process based on qualifications and competency as required by law.” The Civil Grand Jury further recommended that best practices should be followed in all jurisdictions, including the City of Ojai.

The Civil Grand Jury’s summary noted that the risk of running out of time and missing deadlines arose as a consistent theme in Ojai’s decision-making process and recognized that that “Ojai certainly faced pressure to keep the project funded and moving forward.” The report summary concluded with recognition that providing safe and secure accommodations for the unhoused population is an important goal shared by the City of Ojai and its Ventura County partners, and that the issues were not with the project’s good 191

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intentions, but rather with the execution and management of the project.

Pursuant to California Penal Code Section 925a, a grand jury may examine the records of any incorporated city and “may investigate and report upon the operations, accounts, and records of the officers, departments, functions, and the method or system of performing the duties of any such city” and make recommendations as it may deem proper and fit.

Reports resulting from such investigations must be transmitted to the governing body of any affected agency. Following completion of an investigation, and with approval of the presiding judge, a grand jury may make its findings and report available to the public and may also submit the report for comment to responsible officers, agencies, or departments of the agency that is the subject of the investigation.

After receiving a report from a grand jury, Penal Code Section 933 requires that the public agency that is the subject of the report provide comments to the presiding judge of the superior court on the findings and recommendations pertaining to the matters under the governing body’s control within 90 days after submission of the final report. Penal Code Section 933.05(a) establishes the form of such responses to findings and provides that they must indicate one of the following:
(1) The respondent agrees with the finding.
(2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor.
(Penal Code Section 933.05(a)).

Additionally, with respect to grand jury recommendations, the agency must identify whether (1) the recommendation was implemented with a summary of the implemented action, (2) the recommendation has not been implemented, but will be implemented in the future, with a timeframe for implementation, (3) the recommendation requires further analysis, or (4) the recommendation will not be implemented because it is not warranted or reasonable, with an explanation.

Beginning on page 13 of the Civil Grand Jury’s report, the Civil Grand Jury listed 18 findings related to the project and also provided six recommendations for future action. Page 15 of the Civil Grand Jury’s report requests responses within 60 days from the date of the report from the City Manager (and 90 days from the City Council). Because grand jury reports often pertain to legal issues, a common practice for a city receiving a civil grand jury report is for the initial draft of the response to be prepared by the City Attorney’s Office with subsequent input from City staff and approval by the City Council. Consistent with this practice, the City Attorney recommends that City Council provide direction to the City Attorney’s Office to prepare a consolidated response from the City Council and the City Manager for review by City Council at a meeting in August.

CITY COUNCIL GOALS ALIGNMENT
Goal No. 8 - Financial Stability
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OPTIONS

1. Provide alternate direction to the City Attorney and City Manager.

FISCAL IMPACT
Preparation of the response to the Civil Grand Jury report will require attorney and staff time. Implementation of the Civil Grand Jury’s recommendations will also require attorney and staff time. City attorney and staff time is incorporated in the FY 26/27 budget.

Prepared by: Bethany Burgess, City Attorney

ATTACHMENT(S)
A. Civil Grand Jury Report, including attachments.
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Administrative Report
TO: Honorable City Council
FROM: Ben Harvey, City Manager
Bethany Burgess, City Attorney
MEETING DATE: July 14, 2026
SUBJECT: Municipal Code Revisions (Legal Requirement)

RECOMMENDATION
Provide direction to the City Attorney’s Office to work with staff to prepare recommended Code revisions to various ordinances as further described in this report.

DISCUSSION
Periodically, it is necessary and prudent for a local public agency to review its code of ordinances and provide updates to ensure that such provisions reflect current public agency best practices, comply with updates in applicable laws and regulations, ensure internal consistency, and ensure clarity. Additionally, over time, staff and the City Attorney may identify other areas where a City’s code contains gaps that result in an inability to effectively address certain issues facing the City.

Over the past six months, the new City Attorney’s office has identified a list of areas where revisions to the City of Ojai Municipal Code would allow the City to better serve the needs of the community, help address updates in state law, and provide for better organizational efficiency and accountability. Specific Municipal Code updates currently recommended include:

1. Public Works Bidding Procedures (Chapter 7-4) and general Purchasing System ordinance (including surplus property disposal) (Chapter 8-4).

2. Accessory Dwelling Unit Ordinance (Section 10-2.1709)

3. Creation of Voluntary Lot Merger Ordinance

4. Creation of ordinance adopting Objective Design Standards (in process through Planning Commission ad hoc subcommittee)

5. Sign Standards (Sections 10-2.1601, et seq.)

6. Encroachment Permits for Outdoor Dining (Sections 7-7.701, et seq.)

7. Historic Preservation Ordinance (Chapter 4-8)
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8. Affordable Housing Incentives and Density Bonuses (Sections 10-2.901, et seq.)

9. Parking and Loading Standards (Sections 10-2.1401, et seq.)

10. Use of Zoning Clearances (Sections 10-2.1901, et seq.)

11. Certain City Administrative provisions, such as provisions providing the time and place of Council meetings to reflect current practices (Section 2-1.201)

12. Code enforcement lien requirements (Chapter 1-6)
If Council provides authorization to the City Attorney’s Office to begin work on these revisions, the City Attorney’s Office will begin with the City’s bidding and purchasing ordinances and Accessory Dwelling Unit ordinance (though work may take place in parallel on the others).

CITY COUNCIL GOALS ALIGNMENT
Goal No. 1 - Affordable Housing
Goal No. 4 - Infrastructure Maintenance and Improvement Goal No. 8 - Financial Stability
Goal No. 9 - Communication and Relationships

OPTIONS

1. Take no action;

2. Provide alternative directions to staff.

FISCAL IMPACT
Preparation of code revisions will require attorney and staff time. Implementation of such revisions will also require attorney and staff time. City attorney and staff time is incorporated in the FY 26/27 budget.

Prepared by: Bethany Burgess, City Attorney

ATTACHMENT(S)
None
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Administrative Report
TO: Honorable City Council
FROM: Ben Harvey, City Manager
MEETING DATE: July 14, 2026
SUBJECT: Concept Review of Contracted Services (City Council Direction)

RECOMMENDATION

1. Review the attached list of contracted services and identify those contracts for which the City Council would like additional analysis; and

2. Direct staff to return at a future meeting with a detailed evaluation of the selected contracts, including operational, staffing, financial, legal, and service level considerations associated with potentially bringing those services in-house.

DISCUSSION
The City contracts for a variety of municipal services to efficiently provide high-quality services while maintaining fiscal responsibility and operational flexibility. The purpose of this concept review is to provide the City Council with an opportunity to identify which, if any, contracted services warrant additional analysis regarding the feasibility of transitioning those services to City employees.

This report is not intended to recommend that any service be brought in-house or continue to be contracted. Rather, it is intended to allow the City Council to prioritize which contracts staff should study in greater detail before any policy decisions are considered.

Municipal Service Delivery Models
California cities utilize a wide spectrum of service delivery models. Some municipalities provide nearly all services with City employees, while others contract for many municipal functions. Most cities operate somewhere between these two models, utilizing a combination of in-house staff and specialized contractors depending on operational needs, available expertise, workforce capacity, economies of scale, and fiscal considerations.

Contracting for municipal services is a long-established and common practice throughout California, particularly among small and medium-sized cities where maintaining specialized full-time staff for every municipal function may not be practical or cost-effective. Even many larger cities routinely contract for specialized professional services, engineering, construction management, legal services, information technology, animal services, landscape maintenance, and other operational functions.

As part of any future evaluation, staff would assess not only direct financial costs, but also 216

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considerations such as:
 Required staffing levels
 Employee recruitment and retention
 Equipment and capital needs
 Ongoing training and certifications
 Liability and risk management
 Service quality and performance
 Operational resiliency
 Long-term financial impacts
Example: City of Lakewood
The City of Lakewood, California, is widely recognized as one of the earliest examples of the “contract city” model. Since its incorporation in 1954, Lakewood has delivered municipal services primarily through contracts with both public agencies and private firms rather than maintaining large municipal departments.

Under what has become known as the “Lakewood Plan,” the City contracts for services such as law enforcement, public works, engineering, parks maintenance, recreation programming, building and safety, and numerous administrative functions while maintaining a relatively lean municipal workforce focused on policy oversight, contract administration, and customer service.

The success of the Lakewood model has influenced numerous California cities and demonstrated that municipalities can maintain high service levels while utilizing contracted service providers. Over the decades, many cities have adopted varying degrees of this approach based on their individual operational and financial needs.

California Contract Cities Association (CCCA)
The California Contract Cities Association (CCCA) is an organization representing cities that utilize contracted municipal services as all or part of their service delivery model. The Association currently represents dozens of California municipalities and provides education, advocacy, and collaboration regarding municipal contracting practices.

Membership within the CCCA illustrates that contracting municipal services is a common governance model throughout California rather than an exception. While each member city structures its operations differently, the organization provides examples of municipalities that successfully balance contracted and in-house services to meet community needs.

Future Analysis
Should the City Council direct staff to evaluate specific contracts, future reports would include information such as:
 Current scope of services
 Current contract costs
 Historical performance
 Staffing requirements if brought in-house
 Estimated salaries and benefits
 Equipment and facility needs
 Technology requirements
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 Transition costs
 Legal and labor considerations
 Risks and opportunities
 Comparative analysis of continuing contracted services versus internal operations  Staff recommendation, if appropriate
This phased approach allows the City Council to focus staff resources on the contracts of greatest interest before undertaking detailed operational and financial analyses.

CITY COUNCIL GOALS ALIGNMENT
N/A (See Explanation Below)
This item does not directly align with a specific city Council Goal or Tactic because it is a policy-level concept review intended to facilitate Council discussion and provide direction to staff.

OPTIONS

1. Take no action;

2. Provide alternative direction to staff.

FISCAL IMPACT
There is no immediate fiscal impact associated with this concept review, other than the staff time required to prepare future analyses as directed by the City Council.

If the City Council requests additional evaluations, staff time and consultant assistance, if necessary, may be required depending on the complexity of the contracts selected for review. Any future recommendations involving changes to service delivery would include a comprehensive fiscal analysis identifying one-time transition costs, ongoing operating costs, staffing impacts, equipment requirements, and any anticipated budget adjustments prior to City Council consideration.

Prepared by: Norma Cervantes, Assistant to the City Manager

ATTACHMENT(S)
A. Log of Contracts
218

CONTRACTS LOG
Number Dept Contractor Name Activity Amount Purchase
Authority
Contract Start
Date
Contract End Date Considerations to bring internal Notes 1 CD Raimi & Associates General Plan Update $ 342,025 Council 12/12/2019 12/31/2026 Would require hiring additional City employee
2 CD Willdan Engineering Building & Safety Services $ 270,000 Council 8/1/2024 7/31/2026 Would require hiring additional City employees
Contract renewal forthcoming to City Council.

Partially reimbursed through fees.
3 CD Willdan Engineering Code Compliance Services $ 150,000 Council 7/1/2025 6/30/2026 Would require hiring additional City employees
Contract renewal forthcoming to City Council.

Partially reimbursed through fines.
4 CD Historic Resources Group, LLC Historic Resource Inventory Survey Update $ 88,050 Council 3/17/2026 3/17/2028 Independent Expertise 5 CD Storm Water Pollution Prevention
Professional Consulting Services (SWPPP)
Professional Services for Storm Water
projects
$ 29,999 City Manager 1/24/2026 1/24/2027 Would require additional City employees 6 CD Data Ticket Inc. Administrative Citation processing & Collection $ 12,000 City Manager 3/24/2021 renews every year after 2026 unless cancelled Would require hiring additional City
employees
7 CM Ventura County Sheriff Department Police Services $ 4,175,390 Council 1977 Continues until
terminated (60 day
notice)
Considerable effort; would require creation
of new City department Amount is the adopted budget
8 CM Aleshire & Wynder LLP Legal Services $ 773,383 Council 12/2/2025 12/2/2030 Considerable effort; would require creation of new City office
9 CM Bartkiewicz, Kronick & Shanahan Ventura Watershed Lawsuite $ 400,000 Council 2/19/2020 Water Litigation 10 CM Ojai Valley Fire Safe Council Community Outreach & Education & Wildfire Risk Mitigation $ 386,025 Council 10/1/2025 9/30/2026 Independent Expertise 11 CM Secural Security Corp Encampment Security $ 185,000 Council 7/1/2024 6/30/2026 Would require hiring additional City employees Contract renewal forthcoming to City Council
12 CM Tripepi Smith Communication Support Services $ 155,600 Council 7/1/2025 6/30/2027 Contract for add'l. year just awarded Contract for add'l. year just awarded 13 CM Help of Ojai Case Management Services $ 144,720 Council 1/30/2025 1/30/2027 Independent Expertise ERF Grant reimbursable 14 CM Ojai Valley Chamber of Commerce Community Vitality & Business Development $ 109,200 Council 7/1/2025 6/30/2026 Independent Expertise Contract renewal forthcoming to City Council 15 CM Help of Ojai Rental Assistance Program $ 100,000 Council 11/1/2025 11/1/2026 Independent Expertise 16 CM Ojai Valley Historical Society & Museum Support for full service museum services $ 75,000 Council 6/30/2019 7/1/2026 Independent Expertise Contract renewal forthcoming to City Council 17 CM Hinderliter de Llamas & Associates Business License & Cannabis Software Application $ 52,000 Council 11/3/2025 Auto Renew Independent Expertise Previously handled in-house 18 CM HdL ECONSolutions Economic Development Action Plan $ 52,000 Council 1/27/2026 1/27/2029 Would require hiring additional City employee
19 CM Ojai Valley Unified School District Fire Preparedness, Climate Resilience Education Partnership $ 50,000 Council 3/3/2026 2/28/2028 Involves OUSD students 20 CM County of Ventura - Animal Services Animal Services $ 47,683 Council 7/1/2022 6/30/2027 Not feasible 21 CM County of Ventura - VC Behavioral Health Non-emergent mental health field $ 44,412 Council 5/1/2025 9/30/2026 Not feasible 50% ERF Grant Reimbursable 22 CM Ojai Valley Green Coalition City Hall Campus Master Plan $ 41,352 Council 3/11/2026 6/30/2026 Master Plan presneted to City Council 07/11/2026 23 CM Kiley & Associates LLC Federal advocacy & funding support $ 36,000 Council 1/27/2026 1/27/2027 Independent Expertise 24 CM Municipal Resource Group LLC On-Demand Human Resource Services $ 30,000 Council 3/8/2024 12/31/2026 Independent Expertise The contract is project based and provides assistance
with policy development, classification and
compensation, workplace investigations, training and
coaching.
25 CM California Consulting Grant writing and administration services $ 29,999 City Manager 7/1/2026 6/30/2027 Would require hiring additional City employee
26 CM InfoSight Cybersecurity Assessment & Compliance
Review
$ 16,151 Council 9/29/2025 9/29/2028 Independent Expertise 27 FIN Rogers, Anderson, Malody & Scott LLP Auditing Services $ 187,875 Council 4/22/2025 5/31/2028 Independent Expertise Cummulative total 28 FIN Eide Bailly LLP Accounting & Financial management support
$ 167,000 Council 7/1/2025 6/30/2027 Contract in final year Trial balance, year-end efforts, implementation of
accounts payable module, year-end support FY 25-26
29 FIN Olivarez Madruga Law Organization LLP Legal Services related to TOT audit appeal hearings $ 60,000 Council 12/2/2024
Shall remain in full force
& effect until terminated
by either party hereto
Not feasible

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Note: CIP contracts, Franchise Agreements (i.e. EJ Harrison), software contracts, subscriptions, and licensing contracts are not included. 219

CONTRACTS LOG
Number Dept Contractor Name Activity Amount Purchase
Authority
Contract Start
Date
Contract End Date Considerations to bring internal Notes 30 FIN Olivarez Madruga Law Organization LLP Legal Services related to TOT audit appeal hearings $ 29,999 City Manager 12/2/2024
Shall remain in full force
& effect until terminated
by either party hereto
Not feasible
31 FIN Olivarez Madruga Law Organization LLP Legal Services related to TOT for Short Term Rental $ 29,999 City Manager 3/31/2025
Shall remain in full force
& effect until terminated
by either party hereto
Not feasible
32 FIN HdL Coren & Cone Property Tax Consulting/Audit Services $ 22,600 City Manager 5/1/2025 6/30/2027 Independent Expertise 33 FIN HdL Coren & Cone Direct Assessment on Property Tax for Library Special Tax $ 5,000 City Manager 5/1/2025 6/30/2027 Independent Expertise 34 PW Kelly Cleaning and Supplies Maintenance Services $ 115,264 Council 10/10/2022 6/30/2027 Already evaluated by City Council Facilities cleaning/maintenance. 35 PW Mark Crane Tree Service Maintenance Services $ 95,000 Council 8/28/2018 6/30/2027 Possible hiring arborist and crew to maintain large trees large bucket truck and expertise
Annual maintenance agreement for removal of trees,
trimming, pruning, etc. Staff does not have the
equipment or adequate staffing to dedicate a full 4 man or 3 man crew to accomplish this work.
36 PW County of Ventura - GSA MOU Fleet Asset Services & Repairs $ 75,000 Council 12/21/2023 Shall automatically renew each Fiscal Year
Would require hiring of additional
employees Hourly rate based on service
37 PW Ventura Pest Control Maintenance Services $ 42,300 Council 4/1/2026 6/30/2027 Frequency of work would not merit FTE 38 PW Solid Waste Solutions, Inc. Solid Waste Consultant Services $ 23,000 City Manager 7/25/2017 6/30/2027 Frequency of work would not merit FTE SB1383 compliance and Harrison Franchise agreement
management assistance
39 PW Prudential Overall Supply Maintenance Services $ 15,000 City Manager 7/1/2025 6/30/2027 Laundering services Uniform and other laundry services ie. mats, towels etc. 40 PW Willdan Engineering Landscape and Lighting District Engineers Reports
$ 14,465 City Manager 1/1/2026 12/31/2026 Frequency of work would not merit FTE 41 PW Fence Factory Fence Rental $ 6,541 City Manager 1/29/2025 1/30/2027 Frequency of work would not merit FTE As-needed basis ie. OTT, tree down. 42 PW Phoenix Civil Engineering On-Call Agreement $ 200,000 Council 12/14/2022 6/30/2027 Requires hiring of City Engineer Non-CIP design work ie. RRFBs, other non-CIP projects 43 PW Flowers & Associates On-Call Agreement $ 100,000 Council 7/1/2024 6/30/2027 Frequency of work would not merit FTE Civil Engineering 44 PW Avant Garde On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Engineering services 45 PW BC Tree Service On-Call Agreement $ 75,000 Council 10/24/2023 6/30/2027 Frequency of work would not merit FTE Tree trimming 46 PW Falcon Roofing Co. On-Call Agreement $ 75,000 Council 7/1/2025 6/30/2027 Frequency of work would not merit FTE Roofing 47 PW Frank's Underground Utilities Inc On-Call Agreement $ 75,000 Council 10/23/2024 6/30/2027 Frequency of work would not merit FTE General construction contractor 48 PW Green Globe HVAC On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Would require hiring of an HVAC expert Heating and cooling for HVAC 49 PW Hansen's Plumbing On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Pulumbing 50 PW J&H Engineering On-Call Agreement $ 75,000 Council 7/1/2025 6/30/2027 Would require hiring of City Engineer General construction contractor 51 PW Jordan Mellett Construction On-Call Agreement $ 75,000 Council 7/1/2025 6/30/2027 Would require hiring of additional employees General contractor services
52 PW Kasraie Consulting On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE General contractor services 53 PW M6 Consulting On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Architechtural design 54 PW MAC Painting On-Call Agreement $ 75,000 Council 4/3/2023 6/30/2027 Frequency of work would not merit FTE Facilities painting 55 PW Mark Crane Tree Service On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Possible hiring arborist and crew to maintain
large trees large bucket truck and expertise Tree trimming 56 PW McLeod Construction On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE General contractor 57 PW Precision Concrete Cutting On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Sidewalk repairs as needed 58 PW Specialized Pavement Marking On-Call Agreement $ 75,000 Council 7/1/2025 6/30/2027 Frequency of work would not merit FTE Street markings 59 PW Superior Restoration On-Call Agreement $ 75,000 Council 4/3/2023 6/30/2027 Independent Expertise Hazardous waste clean-up 60 PW The CREW On-Call Agreement $ 75,000 Council 7/1/2025 6/30/2027 Would require hiring of City employees Brush clearing 61 PW Toro Enterprises On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Labor compliance assistance 62 PW Union Materials Testing On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Construction materials testing 63 PW Ventura Concrete Cutting On-Call Agreement $ 75,000 Council 10/24/2023 6/30/2027 Frequency of work would not merit FTE Sidewalk repairs 64 PW West Coast Arborists On-Call Agreement $ 75,000 Council 7/1/2025 6/30/2027 Would require hiring of City Arborist Tree trimming 65 PW Whitman Architectural Design On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Storm water/drain services 66 PW Wingate Earthworks On-Call Agreement $ 75,000 Council 8/27/2024 6/30/2027 Frequency of work would not merit FTE Tree trimming 67 PW GPA Consulting On-Call Agreement $ 40,000 Council 7/1/2024 6/30/2027 Frequency of work would not merit FTE Environmental & Permitting Services 68 PW Willdan Engineering On-Call Agreement $ 40,000 Council 10/24/2023 6/30/2027 Frequency of work would not merit FTE Engineering services 69 PW WM Surveys On-Call Agreement $ 30,000 Council 10/24/2023 6/30/2027 Frequency of work would not merit FTE Surveyor

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Note: CIP contracts, Franchise Agreements (i.e. EJ Harrison), software contracts, subscriptions, and licensing contracts are not included. 220

CONTRACTS LOG
Number Dept Contractor Name Activity Amount Purchase
Authority
Contract Start
Date
Contract End Date Considerations to bring internal Notes 70 PW Architerra Design Group On-Call Agreement $ 29,999 City Manager 7/1/2024 6/30/2027 Frequency of work would not merit FTE Design services 71 PW Benner & Carpenter On-Call Agreement $ 29,999 City Manager 7/1/2024 6/30/2027 Frequency of work would not merit FTE Surveying 72 PW Hamner Jewell & Associates On-Call Agreement $ 29,999 City Manager 4/17/2023 6/30/2027 Frequency of work would not merit FTE Right of way consulting firm 73 PW Minagar & Associates On-Call Agreement $ 25,000 Council 10/24/2023 6/30/2027 Frequency of work would not merit FTE Traffic engineering 74 PW Jan Scow On-Call Agreement $ 10,000 Council 10/24/2023 6/30/2027 Frequency of work would not merit FTE Arborist 75 Transit CR Mobile Repair & Towing Mobile Mechanic $ 29,999 City Manager 7/1/2026 6/30/2027 Would require hiring of additional employees
76 Transit Pristine Auto Detail Auto Detailing $ 50,000 Council 7/5/2024 6/30/2026 Would require hiring of City employee Contract renewal forthcoming to City Council 77 Transit Fillmore Area Transit DBA Sun Shuttle &
Transit
Trolley Drivers $ 60,000 Council 8/23/2025 8/23/2026 City working to hire additional drivers

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Note: CIP contracts, Franchise Agreements (i.e. EJ Harrison), software contracts, subscriptions, and licensing contracts are not included. 221

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Administrative Report
TO: Honorable City Council
FROM: Ben Harvey, City Manager
Bethany Burgess, City Attorney
Lucas Seibert, Community Development Director
MEETING DATE: July 14, 2026
SUBJECT: Affordable Housing Agreement Located at 312 West Aliso Street And Third-Party Income Qualify Household for DeedRestricted Affordable Housing Units

RECOMMENDATION

1. Receive the staff report and presentation and ask clarifying questions related to the Affordable Housing Agreement associated with Cottages Among the Flowers.

2. Direct the City Manager and City Attorney to finalize and execute the Declaration of Land Use Restrictive Covenants (Affordable Housing Agreement) with Ojai Bungalows LP, associated with the two deed-restricted units within the Cottages Among the Flowers site and cause it to be recorded in the Official Records of Ventura County (Attachment A).

3. Direct the City Manager to negotiate and execute a formal Professional Services Agreement with Area Housing Authority of the County of Ventura. The proposal from Area Housing Authority includes performing third party services to income qualify households for deed-restricted affordable housing units. The Area Housing Authority proposal for third-party services is Attachment B.

4. Direct the City Manager to establish a reporting schedule and compliance format associated with those households which are income qualified to reside within the deedrestricted units.

DISCUSSION
Affordable Housing Agreements are required as regulatory agreements for dedicated deed-restricted units to legally enforce, monitor, and preserve the properties long-term affordability and compliance with state and local land-use regulations. The affordable housing agreement serves as the operational contract that dictates how the restriction functions. Below are key points to the draft agreement:

Land Use Restrictive Covenants — Key Provisions
 The agreement is between Ojai Bungalows LP (Owner) and the City of Ojai, and governs the property at 312 West Aliso Street.
 The Owner is required to maintain two newly built affordable Accessory Dwelling Units:
one deed-restricted low-income unit and one deed-restricted very low-income unit, each consisting of at least one one-bedroom unit.
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 The affordability period commences upon issuance of a certificate of occupancy and continues for a minimum of 55 years, regardless of any sale, transfer, or conveyance of the property.
 Rents for the two affordable units shall be set at an "Affordable Rent" as defined under Health and Safety Code Section 50053 throughout the affordability period.  Annual income determinations must be made by the Owner or designated third-party agent, with appropriate documentation submitted to the City.  In the event a tenant's income subsequently exceeds the applicable income limit, the Owner or designed third-party agent, must rent the next available comparable unit to an income-qualified household, at which point that unit becomes the affordable unit.  The Owner or designated third-party agent must provide the City with an annual certification of compliance in a format and on a schedule approved by the City.  All affordable units must be rented for a minimum of 30-days; short-term assignments, subletting, and vacation rentals are expressly prohibited.

AHA Monitoring Proposal |
The proposal was submitted by Carrie Sabatini, Executive Director of the Area Housing Authority of the County of Ventura and outlines three service scenarios, each with a corresponding fee structure. Those three scenario’s are highlighted below:
 Scenario 1 — Full Eligibility Screening. AHA would maintain and administer a waiting list for the Ojai deed-stricted affordable units, perform eligibility screening in accordance with the Affordable Housing Agreement(s) and the Ojai Affordable Housing Requirements and Incentives Ordinance Title 10, Chapter 2, Article 9, conduct annual reexaminations of tenant income to determine continued eligibility, coordinate with the City and property management on required reporting and monitoring, and maintain client and applicant records per City retention requirements.

The fee for Scenario 1 would follow the U.S. Department of Housing and Urban Development (HUD) Administrative Fee schedule for the Housing Choice Voucher (Section 8) program, set at $162.50 per unit per month in 2025, with annual adjustments per the HUD schedule.
 Scenario 2 — Review of Eligibility Assessments. The owner/city would maintain their own waiting list and conduct their own eligibility calculations; AHA would only review complete documentation and calculations to verify that the household meets income eligibility requirements for the property. The fee structure would be $250 per file reviewed.
 Scenario 3 — Other Services (As Needed). If neither Scenario 1 nor Scenario 2 adequately reflects the work required, AHA offers an hourly fee of $150 per hour, or a mutually agreed-upon fee prior to commencing work.

Other Affordable Housing Groups Considered |
No Request for Proposals was performed for this third-party service. However, staff has performed research and contacted or considered other affordable housing groups who could review eligibility assessments. They include Cabrillo Economic Development 223

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Corporation (CEDC), Habitat for Humanity of Ventura County, Many Mansions, and HELP of Ojai. Each organizational group provides various housing related services.

CITY COUNCIL GOALS ALIGNMENT
Goal No. 1 - Affordable Housing

OPTIONS

1. Take no action;

2. Provide alternative direction to staff which includes: If the City Council determines that the Owner's property management team has sufficient capacity to administer eligibility independently, staff could return with a modified agreement under Scenario 2 at $250 per file reviewed. This alternative would reduce ongoing costs but would require the City to more actively monitor each Owner's internal processes to ensure compliance.

3. Direct staff to perform a request for proposals (RFP) for screening eligibility requirements through a third-party affordable housing group and return with an affordable housing group which meets the needs of the task identified.

FISCAL IMPACT
The financial impact to the City is primarily administrative. Under Scenario 1 (Full Eligibility Screening), the AHA fee of $162.50 per unit per month would apply to the two deedrestricted units, resulting in an estimated annual cost of approximately $3,900 per year (2 units × $162.50 × 12 months), subject to annual HUD fee schedule adjustments. Under Scenario 2 (Review of Eligibility Assessments), costs would be incurred on a per-file basis at $250 per file, making total costs variable depending on tenant turnover and application volume. Under Scenario 3 (Other Services as Needed), costs would be determined on an hourly basis at $150 per hour or by mutual agreement.

Prepared by: Lucas Seibert, Community Development Director

ATTACHMENT(S)
A. Affordable Housing Covenant
B. Area Housing Authority Proposal
C. Sample Application for Deed Restricted Units
224

RECORDING REQUESTED BY,
AND WHEN RECORDED RETURN TO:

City Hall, City of Ojai
Attn: Lucas Seibert,
Community Development Director
401 South Ventura Street
Ojai, CA 93023
APN(s): 020-0-250-015, 020-0-
250-025
[SPACE ABOVE FOR RECORDER’S USE ONLY]
EXEMPT FROM RECORDING FEES PER GOV. CODE §§ 6103, 27383

DECLARATION OF LAND USE RESTRICTIVE COVENANTS
This Declaration of Land Use Restrictive Covenants (“Declaration”) is made and entered into as of the date of the last signature hereunder (the “Effective Date”), by and between Ojai Bungalows LP, a California limited partnership (“Owner”) and the City of Ojai, a municipal corporation (“City”). Owner and City are sometimes referred to individually as “Party” and collectively as the “Parties” throughout this Declaration.

RECITALS
A. WHEREAS, Owner is the owner of certain real property located at 312 West Aliso Street, Ojai, CA 93023, designated as Assessor’s Parcel Number(s) 020-0-250-015, -025 as more particularly described in Exhibit A attached hereto and incorporated herein (“Property”) and has developed a project on the Property referred to herein as the “Cottages Among the Flowers” or “Project.”
B. WHEREAS, a dispute arose between Owner and City concerning Owner’s development of certain real properties within the City of Ojai and Owner filed a complaint/petition against the City in Ventura County Superior Court – Case No. 2023CUWM016948; and C. WHEREAS, the Parties settled the foregoing case through that certain Settlement Agreement Concerning Ojai Bungalows Project signed by Owner on December 22, 2023 and the City on December 23, 2023 (“Settlement Agreement”); and D. WHEREAS, the Property includes ten residential units; and E. WHEREAS, the Owner is approved to develop two new second-story Accessory Dwelling Units above the existing garage on the Property; and
F. WHEREAS, under the Settlement Agreement, Owner agreed to develop the Cottages Among the Flowers with two income- and rent-restricted units (the “Affordable Units”); and
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G. WHEREAS, the Affordable Units will include one deed-restricted low-income unit and one deed-restricted very low-income unit; and
H. WHEREAS, the Parties intend for the covenants contained herein to preserve the Affordable Units for 55-years consistent with the Settlement Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Owner hereby covenants, agrees, and declares that the Property shall be owned, held, used, maintained, and transferred pursuant to the following restrictive covenants, conditions, restrictions, and limitations (“Covenants”). Such Covenants shall be binding upon all of Owner’s successors, assigns, and transferees to or of the Property, and upon all leases, tenants, contractors, agents, and persons claiming an interest in the Property, or claiming an interest by and through any of the foregoing.

COVENANTS
I. INCORPORATION
The foregoing recitals and Exhibit A are incorporated herein by reference.

II. DEFINITIONS
A. “Actual Household Size” means the actual number of persons in the applicable household.

B. “Affordable Rent” shall have the meaning set forth in Health and Safety Code section 50053.

C. “Area Median Income” or “AMI” means the median income for Ventura County, California, adjusted for Actual Household Size, as determined by the U.S.

Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development (“HCD”) in Section 6932 of Title 25 of the California Code of Regulations or any successor provision published pursuant to California Health and Safety Code section 50093(c). If there is a discrepancy between applicable HUD and HCD AMI levels, then the HCD AMI will be applied, unless otherwise required by mandatory requirements of applicable federal law.

D. “Qualified Household” means a household which meets the specific income limit criteria as defined below and in Section 6932 of Title 25 of the California Code of Regulations in effect at the time an application for occupancy is submitted, of the Restricted Unit to which they are applying:
“Low-income households” has the same definition as “persons and families of low-income” as set forth in Health and Safety Code section 50093, subd. (a).

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“Very low-income households” has the same definition as set forth in Health and Safety Code section 50105.

E. “Rent” means the total of monthly payments for a rental or cooperative unit for:
(a) Use and occupancy of a housing unit and land and facilities associated therewith; (b) Any separately charged fees or service charges assessed by the lessor which are required of all tenants, other than security deposits; (c) A reasonable allowance for utilities not included in (a) or (b) above, including regular garbage collection, sewer, water, electricity, gas, and other heating, cooking and refrigeration fuels; provided, that such utilities shall not include telephone service, cable or internet services, which shall be at the tenant’s separate expense, and such allowance shall take into consideration the cost of an adequate level of service for the included utilities (“Utility Allowance”); and (d) Possessory interest, taxes, or other fees or charges assessed directly against the Qualified Household occupying the Restricted Unit for use of the land and facilities associated with the Project by a public or private entity other than the lessor. Monthly rent shall be an average of estimated costs for the next twelve months. (Section 6918 of Title 25 of the California Code of Regulations).

F. “Restricted Units” means and refers to those units which are subject to this Agreement and are rented at the Permitted Rental Rate to Qualified Households as either Very Low-Income or Low-Income.

G. The term “Owner” as used in this Declaration shall include Ojai Bungalows LP and all successors, assigns, and transferees to or of any or all of Ojai Bungalows LP’s interest in the Property but does not include tenants of the Property.

H. “Qualified Tenants” means individuals or families that are income qualified to occupy the Restricted Units under Section III.C. below.

I. “Unrestricted Units” means the residential units in the Project that are not subject to any rental rate or sales price restriction under this Agreement.

J. “Equivalent Sized” has the same definition as set forth in Government Code Section 65915 (c)(3)(D).

III. TERMS OF AGREEMENT
A. Tenant Protections. Owner shall provide the following additional tenant protections to residents residing in the Cottages Among the Flowers.

1. No current tenant shall be evicted (other than for nonpayment of rent or breach of lease by a tenant, or otherwise in accordance with the Tenant Protection Act of 2019 and the Ojai Municipal Code for just-cause evictions) (each, a “Cottages Displaced Tenant”) to commence construction of a Cottages Among the Flowers unit unless at least an “equivalent-sized” unit is available in Cottages Among the Flowers or Owner’s projects located Attachment A

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at 412 Mallory Way (the “Mallory Project”), 304 South Montgomery (the “Montgomery Project”), or 510 E. Ojai Ave.

2. Units for displaced/relocated tenants are available in Cottages Among the Flowers, the Mallory Project, the Montgomery Project, or 510 E. Ojai Ave.

3. Developer first provides a right of first refusal to a Cottages Displaced/relocated Tenant to establish a residential tenancy at Cottages Among the Flowers, the Mallory Project, the Montgomery Project or 510 E. Ojai Ave., at a rental amount not to exceed the rental rate that the tenant is paying at the time of such eviction referred to in Paragraph 1., above, and any future increase to rent for that tenant is limited by any applicable rent stabilization ordinance.

4. Developer will reimburse moving costs to the Cottages Displaced Tenant up to $2,000. This amount must be paid within seven days of receiving proof of moving expenses (receipts).

B. Local Tenant Preference Policy. Promoting community stability and access to housing for individuals with established ties to the City of Ojai, a two-tiered tenant preference shall apply to qualified tenants consistent with fair housing laws and City of Ojai Ordinance No. 945.

1. Tier One – Local Residence Preference. First priority shall be given to qualified tenants who are current residents of the City of Ojai, the Ojai Sphere of Influence Area, or Area of Interest.

2. Tier Two – Community Connection Preference. Second priority shall be given to qualified tenant who resided in the City of Ojai, the City’s Sphere of Influence, or the designated Area of Interest, for at least ten years, and who left such area within the past five years, or who currently work or have worked within those areas during the same timeframe.

3. All preferences shall be applied only after eligibility screening and in a manner consistent with fair housing and civil rights laws.

4. If insufficient qualified tenant(s) exist within a Tier One, applicants from Tier Two shall be considered.

C. Application Submittal. The developer will submit an application to the City to add two Accessory Dwelling Units (“ADU”) to the Cottages Among the Flowers over the Existing garage (1 deed-restricted low-income unit and 1 deed-restricted very low-income unit).

1. The City will process and approve the application consistent with State ADU Laws.

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2. The two ADUs over the existing garage are addressed 312G West Aliso Street and 312H West Aliso Street.

IV. USE RESTRICTIONS; AFFORDABILITY PERIOD
A. Residential Use. During the term of this Declaration, each Affordable Unit shall be used only for residential purposes in accordance with this Declaration and applicable local ordinances and regulations. Any commercial use, or transient occupancy or rental of less than 30-days is expressly prohibited.

B. Rent Limits. Throughout the Affordability Period, Owner shall set the rents for the Affordable Units at an Affordable Rent and maintain the Affordable Units as affordable rental housing. Qualified Tenants who rent or apply for the Affordable Units are deemed to be third party beneficiaries of this subsection with the right to enforce its terms against the Owner in any unlawful detainer proceeding or in a civil action against the Owner.

C. Income Limits.

1. Owner shall rent or hold vacant and available for rent a minimum of one of the Affordable Units to very low-income households.

2. Owner shall rent or hold vacant and available for rent a minimum of one of the Affordable Units to low-income households.

3. The Affordable Unit(s) designated for very low-income households must consist of at least one, one-bedroom unit. The Affordable Unit(s) designed for Low-income households must consist of at least one, one-bedroom unit.

D. Affordability Period. The Covenants in this Declaration shall be binding, effective, and enforceable commencing upon the date a certificate of occupancy is issued for the Project, and they shall continue in full force and effect for a period of not less than 55-years, regardless of any sale, assignment, transfer, or conveyance (including, without limitation, by foreclosure sale or deed in lieu of foreclosure) of the Property or any portion thereof (“Affordability Period”).

E. Annual Determination. The determination of whether tenants designated as a Qualified Tenant meet the income restrictions set forth herein shall be made by the Owner or its designated agent, appropriately documented to the satisfaction of the City at least annually on the basis of the current income of said tenant. If an Affordable Unit is occupied by an individual or family who were Qualifying Tenants at the commencement of occupancy but whose household income subsequently exceeds the income limits applicable to their Affordable Unit, then, subject to the Grace period provided for in Section IV.E.1., Owner shall rent the next available, comparable Project unit to individuals or families whose household income does not exceed said income limit, at which point the Affordable Unit with the over-income household shall no longer be considered an Affordable Unit and Attachment A

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the next available Project unit rented to the income-qualified household shall become an Affordable Unit.

1. Grace period on Restricted Units. If, upon any annual recertification, it is determined that the household income exceeds the maximum qualifying limit by more than one hundred forty (140) percent, and therefore no longer meets the requirements for a Qualifying Tenant, or if Developer is unable to certify due to tenant’s noncooperation, Developer, or its authorized agent, shall have a period of no more than 24-months (Grace Period”) to either (i) allow the current tenant to re-qualify as a Qualified Household for the Restricted Unit; or (ii) find a new Qualified Household to lease the Restricted Unit. During this Grace Period, the unit shall continue to be counted as one of the two Restricted Units required by this Agreement.

F. Annual Certification of Compliance. Owner shall provide City with an annual certification, in a format and on a schedule approved by the City in its sole discretion, that the Owner is fulfilling its obligations under this Declaration. The City may, from time to time, require additional information or reporting from Owner.

G. No Short-Term Assignment, Subletting, or Vacation Rentals. Owner shall rent all Affordable Units for at least 30-days. Owner shall include in all rental agreements for the Affordable Units a provision prohibiting tenants from assigning or subletting all or a portion of the Affordable Unit. If Owner’s rental agreements provide tenants with the right to terminate their lease term early, then such provision shall expressly provide that tenants have no rights of early termination within the first 30 days of tenancy.

H. ADU Unit(s) Rent Limitation. Owner shall rent the following units addressed 312G West Aliso Street and 312H West Aliso Street to low-income households and very-low income households.

V. RECORDING AND FILING; COVENANTS RUN WITH THE LAND
A. Recordation. Upon execution of this Declaration by the Owner and the City, the City shall cause this Declaration and all amendments hereto to be recorded and filed in the Official Records of Ventura County. Upon recording, the City shall transmit to Owner a copy of the recorded Declaration.

B. Covenants Run with the Land. The Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased, rented, used, and occupied subject to this Declaration and the Covenants set forth herein. The Covenants constitute both equitable servitudes and covenants running with the land. Owner expressly acknowledges and agrees that the Covenants are reasonable restraints on the Owner’s right to own, use, maintain, and transfer the Property and any restraint on interests therein are not and shall not be construed to be unreasonable restraints on alienation. Each and every contract, deed, or other instrument hereafter executed Attachment A

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covering or conveying the Property or any portion thereof or interest therein (other than a rental agreement) shall contain an express provision making such conveyance or transfer subject to this Declaration and the Covenants set forth herein. Each and every contract, deed, or other instrument hereafter executed covering or conveying the Property, or any portion thereof, shall be held conclusively to have been executed, delivered, and accepted subject to such Covenants, regardless of whether such Covenants are set forth in such contract, deed, or other instrument.

VI. ADDITIONAL TERMS AND CONDITIONS
A. No Unapproved Transfers.

1. Owner shall not, except with the City’s prior written consent, sell, encumber, hypothecate, assign, refinance, pledge, convey, or transfer the Property or any interest therein. Any attempted unapproved sale, encumbrance, hypothecation, assignment, pledge, conveyance or transfer shall be void ab initio.

2. If the City determines, in its sole and absolute discretion, to grant its prior written consent for a sale, encumbrance, hypothecation, refinance, pledge conveyance, or transfer, such consent may impose terms and conditions, as necessary, to preserve or establish the fiscal integrity of the Property, to ensure compliance, continued affordability of the Affordable Units throughout the Affordability Period, or to ensure compliance with applicable laws.

B. Binding Effect. This Declaration shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto.

C. Charges; Liens. Owner shall pay all taxes, assessments, and other charges, fines, and impositions attributable to the Property when due directly to the payee thereof.

Owner shall pay when due all encumbrances, charges, and liens on the Property and shall make payments on notes, loans, mortgages, or other obligations secured by an interest in the Property with interest in accordance with the terms thereof.

Owner shall have the right to contest in good faith any claim or lien, or payment due thereunder, so long as Owner does so diligently and without prejudice to the City.

D. Enforcement of Agreement. Each term of this Agreement is contractual. Any Party shall have the right to enforce the terms of the Agreement by proceedings in the Ventura County Superior Court of the State of California.

E. Record Maintenance. Owner shall maintain records documenting compliance with this Declaration and retain such records throughout the Affordability Period.

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F. City Review of Tenant Eligibility. Upon receipt of a complete rental application from a prospective tenant and third-party verification of income, the information shall be submitted to the city for authentication.

G. Record Access. Owner shall allow the City and its authorized representatives to inspect, audit, and copy records related to the Project or this Declaration upon reasonable notice from the City to Owner.

H. Project Access. Owner shall allow the City access to the Project (including the rental units) to evaluate Owner’s compliance with this Declaration upon reasonable notice from the City to Owner.

I. Agents and Other Compliance. Owner shall cause its agents, employees, contractors, and assignees, if any, to comply with the terms and conditions of this Declaration.

J. Third Party Beneficiaries.

1. Third party beneficiaries under this Declaration are limited to those Qualified Tenants applying for or occupying an Affordable Unit. The rights of such third parties are restricted to enforcement of the terms of the Declaration against Owner as contemplated by the Declaration.

2. Third party beneficiaries under this Declaration shall have no claim, cause of action, or other right of recourse against the City with respect to any action or lack of action taken by the City with respect to this Declaration or the Project, or arising from their rights under this Declaration.

VII. REMEDIES
A. Deficiencies. The City may, from time to time, identify and direct the Owner to correct deficiencies in its compliance with this Declaration, which the Owner shall correct as reasonably directed by the City.

B. Additional Remedies. If the Owner fails to comply with any term or condition of this Agreement, and if such default remains uncured by Owner for a period of at least 30 days after notice thereof shall have been given by the City, or if such default runs for a period of 30 days from the date the Owner should, with due diligence, have discovered such default, then an Event of Default shall be deemed to occur and the City may exercise its rights under this subsection. Following the occurrence of an Event of Default hereunder, the City may, at its option, take any one or more of the following steps in addition to all other remedies provided in this Declaration, by law, or in equity:

1. Commence an action for specific performance and such other equitable relief available under the laws of the State of California.

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2. Commence an action for injunctive relief, including, without limitation, an action seeking to enjoin any acts or things that may be lawful, inconsistent with this Declaration, or in violation of Owner’s obligations or the City’s rights under this Declaration.

3. Obtain the appointment of a receiver to operate the Project in compliance with this Declaration.

4. Require the termination of the Owner’s property manager and its replacement to the City’s satisfaction.

5. Require the Owner to cease management of the Project and to engage a property manager acceptable to the City.

C. Foreclosure. In consideration for Owner’s agreement to the terms and conditions hereof, the City has or will convey real property abutting Mallory Way to Owner to provide Owner with more land upon which to develop the Project, as set forth in section 1.b.(iv)(d) of the Settlement Agreement. In further consideration for Owner’s agreement to the terms and conditions hereof, the City has or will waive or reduce the development-related fees that Owner is required to pay the City for the Project’s development, which may include, without limitation, planning, grading, City development impact fees, and building permit fees, as set forth in section 2 of the Settlement Agreement. In the event that a third party lawfully acquires title to the Property through foreclosure or deed in lieu of foreclosure in a manner that causes this Declaration to be extinguished or otherwise terminated prior to the end of the Affordability Period, then the City may sue Owner for the value of the land it conveyed to Owner for Project use and for the amount of any Project development-related fees that the City waived or reduced pursuant to the Settlement Agreement.

D. Remedies not Exclusive. The foregoing remedies shall not be exclusive and are in addition to any other rights and remedies available at law, in equity, or otherwise.

No failure of or delay by the City to enforce any provision of this Declaration shall constitute a waiver by the City of that or any other provision, nor shall any single or partial exercise of any right, power, or privilege under this Declaration preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.

E. Survival of Remedies. The rights and remedies of the City provided for in this Declaration, which by their nature are intended to survive termination of this Declaration, shall survive the termination of the Affordability Period and this Declaration.

F. Remedies for Breach. For remedies available through the Judicial resolution, Parties agree that monetary damages may be inadequate. Remedies shall also include specific performance and/or injunctive relief and other remedies available at law or in equity.

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VIII. MISCELLANEOUS TERMS/EXCLUSIONS
A. Obligation Satisfaction. The Parties shall, at all times, act in good faith in a timely manner to satisfy their respective obligations under the terms of this Agreement and further actions reasonably necessary to effectuate this Agreement. Failure to perform is a material breach of the Agreement.

IX. OWNER REPRESENTATIONS.

Owner represents and warrants to the City that (a) Owner has sufficient interest in the Property to support the operation of the Project in accordance with this Declaration; (b) to Owner’s actual knowledge and belief, there are no agreements, contracts, covenants, conditions, or exclusions to which Owner (or its predecessor in interest) is a party which would, if enforced, prohibit or restrict the use of the Property in accordance with the terms of this Declaration; (c) Owner has the full right and authority to enter into this Declaration; (d) this Declaration constitutes a valid and legally binding obligation on Owner, enforceable in accordance with its terms; and (e) Owner is duly organized and authorized to do business in the State of California.

X. NOTICE.

Any notice which any party may desire to give to the other party under this Declaration must be in writing and may be given by either personal service or mailing via certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below, or at any other address as that party may later designate in a written notice to the other party:

To City:

Ben Harvey
City Manager
401 South Ventura Street
Ojai, CA 93023
With a Courtesy Copy to:

Ojai City Attorney
401 South Ventura Street
Ojai, CA 93023
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To Owner:

Ojai Bungalows, LP
c/o The Becker Group, Inc./Jeffrey R. Becker
40 South Ash Street
Ventura, CA 93001
With a Courtesy Copy to:

Beth Collins
Brownstein Hyatt Farber Schreck, LLP
1021 Anacapa, 2nd Floor
Santa Barbara, CA 93101
XI. MISCELLANEOUS
A. No Discrimination. Owner will not discriminate in the provision of housing on the basis of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, genetic information or any other basis prohibited by local, state, or federal law.

B. Representation of Understanding. Each party represents and warrants to the other that (a) they have carefully read this Declaration, and in signing this Declaration, they do so with full knowledge of any right which they may have; (b) they have received independent legal advice from their respective legal counsel as to the matters set forth in this Declaration, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Declaration; and (c) they have freely signed this Declaration without any reliance upon any agreement, promise, statement, or representation by or on behalf of the other party, or their respective agents, employees, or attorneys except as specifically set forth in this Agreement, and without duress or coercion, economic or otherwise.

C. Construction. The Parties acknowledge that each party has participated in the drafting of this Declaration. Accordingly, the parties agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not apply in the interpretation of this Declaration and any amendment, modification, supplementation, or restatement of the foregoing or of any exhibit to this Declaration.

D. Captions. The captions or headings in this Declaration are for convenience only and in no way define, limit, or describe the scope or intent of any provision of this Declaration.

E. Assignments, Successors and Assigns. Owner shall not assign or otherwise transfer any interest in this Declaration without prior written consent from the City.

Any attempted unauthorized assignment or transfer shall be void ab initio.

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F. Time is of the Essence. Time is of the essence in the performance of this Declaration.

G. Governing Law. This Declaration shall be governed and construed in accordance with the laws of the State of California. Any dispute concerning, relating to, or arising under this Declaration shall be brought in Ventura County Superior Court.

H. Attorney Fees. In any action between the Parties to interpret, enforce, reform, modify, rescind, or otherwise in connection with any of the terms or provisions of this Declaration, the prevailing party shall be entitled to their reasonable costs and expenses, including, without limitation, litigation costs and reasonable attorneys’ fees.

I. Multiple Counterparts and Electronic Signatures. This Declaration may be executed in multiple counterparts. Electronic, faxed, and PDF signatures shall have the same force and effect as handwritten signatures.

J. Severability. All terms and conditions of this Declaration will be deemed severable. Should any one or more of the terms and conditions hereof be deemed void or unenforceable, then the remaining provisions will have full force and effect and those provisions deemed void or unenforceable will be interpreted, to the extent possible, to render such provisions enforceable and in a way consistent with the original intent of the parties hereto.

K. Entire Agreement. This Declaration constitutes the entire agreement between the Parties on the subject matter hereof. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Declaration.

L. Modifications. This Declaration may only be modified by a writing signed by the Parties.

M. Effectiveness. Unless signed by all parties, this Declaration shall have no legal effect.

IN WITNESS WHEREOF, the Owner and City have caused the Declaration to be signed below by their duly authorized representatives.

CITY OF OJAI,
a California Municipal Corporation
Ojai Bungalows LP,
a California limited partnership
By: ___________________________ By: ___________________________ Ben Harvey, City Manager Name: _________________________ Its: ____________________________
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NOTARY ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document

STATE OF CALIFORNIA )
) §
County of )
On , before me,
a Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal. (Affix seal here)
________________________________
Signature of Notary
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I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal. (Affix seal here)
________________________________
Signature of Notary
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EXHIBIT A

LEGAL DESCRIPTION
Attachment A

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Attachment A

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Area Housing Authority of the County of Ventura
1400 West Hillcrest Dr. Newbury Park, CA 91320-2721
(805) 480-9991 • TTY (805) 480-9119 •FAX (805) 480-1021 www.ahacv.org Serving Camarillo, Fillmore, Moorpark, Ojai, Simi Valley, Thousand Oaks, and the unincorporated areas of Ventura County March 23, 2026
Lucas Seibert
Bridget Mara
Aida Lawrence
Re: AFFORDABLE HOUSING UNIT MONITORING
The Area Housing Authority of the County of Ventura (AHA) would like to take this opportunity to provide an updated preliminary proposal for affordable housing monitoring services per our mutual conversations.

The AHA’s understanding of the needed services includes a few scenarios:

Full Eligibility Screening
 Maintaining and administering a waiting list for the Ojai affordable units  Performing eligibility screening for the Ojai affordable housing units in accordance with the Affordable Housing Agreement(s) [agreements and terms to be provided at a future date] and the Ojai Affordable Housing Requirements and Incentives Ordinance § 10-2 Article 9.  Performing annual reexaminations of tenant income to determine continued eligibility  Coordination with the City of Ojai and property management on required reporting, monitoring, etc.
 Maintain client and applicant records in accordance with City of Ojai established retention requirements
The fees proposed to provide such services would be in accordance with the U.S. Department of Housing and Urban Development Administrative Fee schedule for the Housing Choice Voucher (also known as Section 8 Voucher) program. In 2025, that fee is $162.50 per unit per month. The HUD schedule of fees is adjusted annually.

Review of Eligibility Assessments of Developers/Managers  Developer/manager maintains their own waiting list, conducted their own eligibility calculations  AHA would only be reviewing their complete documentation and calculations to verify the documentation supports that the household meets the income eligibility for the property.

In this scenario, the AHA would propose a fee of $250 per file.

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Other Services (as needed)
If a scenario arises where none of the above scenarios properly reflects the work necessary, the AHA could propose an hourly fee ($150 per hour) or a fee could be agreed upon prior to the project.

If we reach agreement on the concept for provision of services, we can enter into a formal service agreement.

Please feel free to reach out to discuss any questions or details.

Sincerely,
Carrie Sabatini
Deputy Executive Director
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Area Housing Authority of the County of Ventura
1400 West Hillcrest Dr. Newbury Park, CA 91320-2721
(805) 480-9991 • TTY (805) 480-9119 • FAX (805) 480-1021 • www.ahacv.org Serving Camarillo, Fillmore, Moorpark, Ojai, Simi Valley, Thousand Oaks, and the unincorporated areas of Ventura County

AUTHORIZATION TO RELEASE INFORMATION
For Deed Restricted Units in the City of Ojai
I hereby authorize the Area Housing Authority of the County of Ventura (AHA) to obtain the information listed below for the purpose of determining my eligibility to receive or to continue affordable rent housing benefits. The AHA may use this release to make inquiries or secure information from any and all sources, such as the ones listed below, including, but not exclusively, a person, business, organization, present or former employer, school and other entities that have, or may have, information about me. I understand that this authorization is part of the initial and continuing eligibility process, and that refusal to sign this consent form will result in the denial of eligibility or termination of affordable housing benefits, or both. I further understand that the information I provide may be released to appropriate Federal, State, and local agencies, when relevant, and to civil, criminal, or regulatory investigators and prosecutors.
 Legal identity verification.
 Income—wages, salary, and asset information from any source including, but not limited to employers, private income verification contractors, such as The Work Number, Thomson Reuters, Bank VOD, etc. for all family members;
 School registration for minor children, and for family members over the age of 18 where required to establish program eligibility, registration in educational or vocational training programs including information about participation completion of such programs.

I understand that the information gathered from my household is utilized to either verify eligibility for the income-restricted housing program associated with my application, or to verify my continued eligibility to occupy the income-restricted unit. I also hereby authorize that a photocopy of this authorization is accepted with the same authority as the original.
(This release EXPIRES 15 months from the date signed).

I, (head of household), certify under penalty of perjury that the signatures below were signed in my presence.

Print Name (Head of Household) Signature (Head of Household) Print Name Other family member 18 yrs & over Signature of other family member 18 yrs & over Print Name Other family member 18 yrs & over Signature of other family member 18 yrs & over Print Name Other family member 18 yrs & over Signature of other family member 18 yrs & over Date MM/DD/YYYY
Attachment C

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Eligibility Application (Ojai) Page 1 of 4
AFFORDABLE HOUSING APPLICATION (Part 1)
(Deed Restricted Units)
The Area Housing Authority of the County of Ventura (AHA) will use the information below to determine if your household's income meets the criteria required to rent an affordable unit at the property you indicated below. This eligibility determination will be based on the property’s regulatory agreement and Section 6932 of Title 25 of the California Code of Regulations in effect when you submit this application. WARNING: Under the laws of the State of California it is a crime to knowingly and willingly provide false information or to make fraudulent claims to state, county, or local government agencies for payment or benefits.

Name and Address of Property:____________________________________________________________ A. APPPLICANT (HEAD OF HOUSEHOLD)
Name (Legal Name):

Present Address:

City: State: Zip:

Primary Telephone: ( ) Secondary Telephone: ( )
E-mail Address:

Mailing Address (if different):

Language(s) applicant speaks and/or writes fluently:  English  Spanish  Other:

B. HOUSEHOLD COMPOSITION
# Persons Residing in Unit
Legal names: Adults & children
Relationship to
Head of Household Gender Date ofBirth
Social Security
Number
Legal
Resident/Citizen
Yes/No
1 Head of Household
2 3
4 5
6 7
8 FOR OFFICE USE ONLY
# Bedrooms ________
# Adults ________
# Children ________ (F)
# Children ________ (M)
Race _____________
Total Annual Gross Income: _________________________________________  Ineligible(reason):__________________________________ Language Spoken:  English  Spanish  Other __________________ Processed by: _______________________________ Date: ______________ Revised 04-06-26
Attachment C

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Eligibility Application (Ojai) Page 2 of 4
Do you have legal permanent or joint custody of any minor child/children listed on page 1, under "Household Composition"?  No  Yes  N/A
If yes, list the absent parent(s) information for any of the children listed in the household:

Child Name Parent Name: Last known address:

Are any of the listed family members temporarily absent from the home? (away for school, hospitalized, etc.)  No  Yes If yes, who and explain the reason they are absent:

Are any of the listed family members currently attending college or vocational school full-time?  No  Yes If yes, explain who and provide the school name, address and telephone number:
____________________________________________________________________________________________________ Have you or any adult member(s) in your household, ever used another name(s) or social security number(s) other than the one you are using now?  No  Yes
If yes, list names (i.e. maiden name, divorced name) and numbers used:
____________________________________________________________________________________________________ C. HOUSEHOLD INCOME (This portion applies to all family members, including minors) Do you or any member of your household work full-time, part-time, or seasonally (i.e. self-employment)?  No  Yes If yes, provide the following information. For wages include fees, tips, bonus, and money for services:

Family
Member # Employer's Name, Address and Telephone Number Monthly Gross Wages $
$
$
$
$
$
$

OTHER INCOME OR BENEFITS RECEIVED
Do you or any member of your household receive income from any other source(s)?  No  Yes If yes, complete and provide gross income, as applicable:

Family
Member
#
How Paid?
Weekly
Bi-weekly
Monthly
Child
Support
Service
related VA
disability
benefits
Social
Security
Disability
(SSI)
Social
Security
(SSA)
Unemployment TANF
(cash grant)
Other
(list source)
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
$ $ $ $ $ $ $
Do you or any member of your household work for anyone who pays you cash?  No  Yes If yes, explain:

Does anyone outside your household give you money to pay your bills, or supply groceries, etc.?  No  Yes If yes, explain:

Does any organization help you to pay a bill or expense (i.e. HEAP)?  No  Yes If yes, explain:

Attachment C

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Eligibility Application (Ojai) Page 3 of 4
D. CASH ASSETS
Do you or any household member have a bank account(s)?:  No  Yes If yes, provide the information below:

Family Member #
Checking Balance: $ Bank Name: