Agenda packet — Oxnard City Council, October 3, 2023 (part 2 of 3)

Activity is hereby repealed and readopted to read as follows:

ARTICLE XVII. COMMERCIAL CANNABIS ACTIVITY
SEC. 11-450. PURPOSE AND INTENT.

It is the purpose and intent of this article to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically-ill persons in need of and provide access to cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to adult-use for persons over the age of 21 as authorized by the Control, Regulate and Tax Adult Use Cannabis Act (“AUMA” or “Proposition 64" enacted by California voters in 2016), while imposing sensible regulations on the use of land to protect the city’s residents, neighborhoods, and businesses from disproportionately negative impacts. As such, it is the purpose and intent of this article to regulate the cultivation, processing, manufacturing testing, sale, delivery, distribution and transportation of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City of Oxnard and to enforce rules and regulations consistent with State law. It is the further purpose and intent of this article to require all commercial cannabis operators to obtain and renew annually a permit to operate within the City of Oxnard. Nothing in this article is intended to authorize the possession, use, or provision of cannabis for purposes that violate State or federal law. The provisions of this article 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, city, or other law.

SEC. 11-451. LEGAL AUTHORITY.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (hereinafter “MAUCRSA”), any subsequent State legislation and/or regulations regarding same, the City of Oxnard is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial cannabis 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 Oxnard to all commercial cannabis activity.

SEC. 11-452. COMMERCIAL CANNABIS ACTIVITIES PROHIBITED UNLESS SPECIFICALLY AUTHORIZED BY THIS ARTICLE.

Except as specifically authorized in this article, the commercial cultivation, manufacturing, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under Cal. Bus. and Prof. Code, Section 26090(e)), of cannabis or cannabis product is expressly prohibited in the City of Oxnard. 564
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SEC. 11-453. COMPLIANCE WITH STATE AND LOCAL LAWS.

It is the responsibility of the owners and operators of a commercial cannabis business to ensure that it is always operating in a manner compliant with all applicable State and local laws, and any regulations promulgated thereunder. Nothing in this article shall be construed as authorizing any actions that violate federal, State law or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners and the operators of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable federal, State and local laws, including the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), and any subsequently enacted State law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the local commercial cannabis business permit. Nothing in this article shall be construed as authorizing any actions that violate federal or State law regarding the operation of a commercial cannabis business.

SEC. 11-454. DEFINITIONS.

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(b) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures. (E) CANNABIS - 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 cannabis. 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 article, CANNABIS does not mean “industrial hemp” as defined by Cal. Health and Safety Code, Section 11018.5 or Cal. Food and Agricultural Code Section 81000.
(F) CANNABIS ACCESSORIES - The same meaning as in Cal. Health and Safety Code, Section 11018.2.
(G) CANNABIS CONCENTRATE - Cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this article. A cannabis concentrate is not considered food, as defined by Cal. Health and Safety Code, Section 109935, or drug, as defined by Cal. Health and Safety Code, Section 109925. (H) CANNABIS PRODUCT - A product containing cannabis, including, but not limited to, manufactured cannabis, - intended to be sold for use by cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Cal. Health and Safety Code, Section 11362.5 (as the same may be amended from time-to-time) or pursuant to the Adult Use of Cannabis Act. For purposes of this article, “cannabis” does not include industrial hemp as defined by Cal. Food and Agricultural Code, Section 81000, or Cal. Health and Safety Code, Section 11018.5.
(I) CANNABIS PRODUCTS - The same meaning as in Cal. Health and Safety Code, Section 11018.1.
(J) CANNABIS WASTE - Any material intended for disposal that contains cannabis but is not otherwise considered a hazardous waste. Cannabis waste consisting solely of plant material shall be considered an organic waste as defined in Public Resources Code section 42649.8(d). (K) CANOPY - The designated area(s) at a licensed premise, except nurseries that will contain mature plants at any point in time.
(1) CANOPY shall be calculated in square feet and measured using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries; and
(2) CANOPY may be non contiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which include, but are not limited to:
interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots; and
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(3) If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total CANOPY calculation. (L) CAREGIVER or PRIMARY CAREGIVER - The same meaning as that term is defined in Cal. Health and Safety Code, Section 11362.7.
(M) CHILD RESISTANT - Designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly. (N) CITY - The City of Oxnard including the area within the territorial city limits of the city and such territory outside of the city over which the city council has jurisdiction or control by virtue of any provision of law.
(O) COMMERCIAL CANNABIS ACTIVITY - Includes the possession, manufacturing, distribution, cultivation, processing, storing, laboratory testing, packaging, labeling or transportation of cannabis and cannabis products as provided for in this division. (P) COMMERCIAL CANNABIS BUSINESS - Any business or operation which engages in medicinal or adult-use commercial cannabis activity.
(Q) COMMERCIAL CANNABIS BUSINESS PERMIT - A regulatory permit required to be issued to a commercial cannabis business by the City of Oxnard prior to commercial cannabis activity being conducted. Such permit cannot be issued before a Certificate of Occupancy is granted for the location at which the commercial cannabis business will be located. The initial permit and annual renewal of a commercial cannabis business permit is made expressly contingent upon the business’s ongoing compliance with all of the requirements of this article and any regulations adopted by the city governing the commercial cannabis activity at issue. (R) CULTIVATION - Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(S) CULTIVATION SITE - A location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (T) CUSTOMER - A natural person 21 years of age or over, or a natural person 18 years of age or older who possesses a State issued medical cannabis identification card. (U) DELIVERY - The commercial transfer of cannabis or cannabis products to a customer.

DELIVERY also includes the use by a retailer of any technology platform owned and controlled by the retailer.
(V) DEPARTMENT OF CANNABIS CONTROL (DCC) - The lead State agency or successor agency responsible for regulating and licensing commercial medicinal and adult use cannabis in California, which is also responsible for licensing retailers, cultivators, distributors, testing laboratories, microbusinesses, and temporary cannabis events. (W) DISTRIBUTION - The procurement, sale, and transport of cannabis and cannabis products between licensees.
(X) DISTRIBUTOR - A Person holding a valid commercial cannabis business permit for distribution issued by the City of Oxnard, and, a valid State license for distribution, required by 567
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State law to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a license manufacturer, for sale to a licensed retailer. (Y) DRIED FLOWER - All dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(Z) EDIBLE CANNABIS PRODUCT - Cannabis product that is intended to be used, orally, in whole or in part, for human consumption. For purposes, “edible cannabis product” includes cannabis products that dissolve or disintegrate in the mouth, but does not include any product otherwise defined as “cannabis concentrate.”
(AA) FUND - The Cannabis Control Fund established pursuant to Cal. Bus. and Prof. Code, Section 26210.
(BB) GREENHOUSE - A fully enclosed permanent structure that is clad in transparent material with climate control, such as heating and ventilation capabilities and supplemental artificial lighting, and that uses a combination of natural and supplemental lighting for cultivation.
(CC) INDOOR CULTIVATION - The cultivation of cannabis within a permanent structure using exclusively artificial light.
(DD) KIND - Applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(EE) LABELING - Any label or other written, printed, or graphic matter upon a cannabis product, upon its container.
(FF) LICENSE - A State license issued by the State and includes both an A-license and an Mlicense, as well as a testing laboratory license. (GG) LICENSEE - Any person holding a license under this article, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
(HH) LICENSING AUTHORITY - The City of Oxnard and/or State agency responsible for the issuance, renewal, or reinstatement of the license, or the City of Oxnard and/or State agency authorized to take disciplinary action against the licensee. (II) LIMITED-ACCESS AREA - An area in which cannabis is stored or held and is only accessible to a licensee or permittee and authorized personnel. (JJ) LIVE PLANTS - Living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(KK) LOCAL JURISDICTION - A city, county or city and county. (LL) LOCAL EQUITY APPLICANT - Applicant with at least 40% local ownership in the aggregate. Ownership shall not fall below 40% at any time and for the life of the commercial cannabis business permit issued by the city. If an applicant does not obtain a commercial 568
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cannabis business permit based upon the local equity status, then that applicant shall not be deemed a local equity applicant.
(MM) LOCAL OWNERSHIP - Ownership interest(s) held by one or more natural persons who are a resident within the city’s corporate boundaries as of the date the application is submitted and who maintain local residency at all times while their ownership interest(s) are used for qualifying as a local equity applicant for one or more commercial cannabis business permits. A minimum of 40% of cannabis ownership (in the aggregate) is required to be composed of residents of the City of Oxnard for the duration of the commercial cannabis business permit issued to the Local Equity Applicant. Factors used to determine local residency shall include (as applicable) but are not limited to the following: ownership or rental of dwelling unit within the city’s corporate boundaries that is the primary residence; California driver’s license with a residential address within the city’s corporate boundaries that is the primary residence; voter registration at a residential address within the city’s corporate boundaries that is the primary residence; residential address within the city’s corporate boundaries used for filing State and federal income tax returns that is the primary residence; and the natural person does not have a homestead exemption in any jurisdiction other than within the city’s corporate boundaries. Local ownership is subject to ongoing verification under penalty of perjury. Failure to maintain a minimum of 40% local ownership is grounds for revocation of the commercial cannabis business permit..
(NN) LOT - A batch or a specifically identified portion of a batch. (OO) M-LICENSE - A State license issued by the State for commercial cannabis activity involving medicinal cannabis.
(PP) M-LICENSEE - Any Person holding a license by the State for commercial cannabis activity involving medicinal cannabis.
(QQ) MANUFACTURE - To compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(RR) MANUFACTURED CANNABIS - Raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.
(SS) MANUFACTURER - A licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or container.
(TT) MANUFACTURING SITE - 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 commercial cannabis business permit for manufacturing from the City of Oxnard and, a valid State license as required for manufacturing of cannabis products.
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(UU) MEDICINAL CANNABIS or MEDICINAL CANNABIS PRODUCT - Cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Cal. Health and Safety Code, Section 11362.5, by a medicinal cannabis patient in California.
(VV) MIXED-LIGHT CULTIVATION - The cultivation of cannabis in a greenhouse, glasshouse, conservatory, hothouse, or other similar structure using light deprivation and/or one of the artificial lighting models, excluding hoop structures. (WW) NONVOLATILE SOLVENT - Any solvent used in the extraction process that is not a volatile solvent. For purposes of this article, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. (XX) NURSERY - A licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically, for the propagation and cultivation of cannabis. (YY) OPERATION - Any act for which a license is required under the provisions of this article, or any commercial transfer of cannabis or cannabis products. (ZZ) OUTDOOR CULTIVATION - The cultivation of cannabis, outside of a structure, without the use of artificial lighting in the canopy area at any point in time. Cultivation within a hoop structure is considered outdoor cultivation.
(AAA) OWNER - Any of the following:
(1) An individual with an ownership interest in the Person with the commercial cannabis business permit or a licensee, unless the interest is solely a security, lien, or encumbrance. (2) The manager of a nonprofit or other entity.
(3) A member of the board of directors.
(4) An individual who will be participating in the direction, control, or management of the business , or who has a financial interest in the business other than a fixed lease of real property. (BBB) PACKAGE - Any container or receptacle used for holding cannabis or cannabis products.
(CCC) PATIENT or QUALIFIED PATIENT - The same definition as Cal. Health and Safety Code, Sections 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of Cal. Health and Safety Code, Section 11362.5.10. (DDD) PERSON - Includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. (EEE) PERSON WITH AN IDENTIFICATION CARD - The meaning given that term by Cal. Health and Safety Code, Section 11362.7.
(FFF) PREMISES - The designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee 570
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where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee unless the operator is granted a Mlicense and an A-license for the same type of activity and such operation is lawful under State and local laws, rules and regulations.
(GGG) PROCESSING - A cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non manufactured cannabis products. (HHH) PURCHASER - The customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(III) RETAILER - A commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale by an operator who holds both a valid commercial cannabis business permit from the City of Oxnard, and a valid State license as required by State law to operate as a retailer. (JJJ) SELL, SALE, and TO SELL - Include any transaction whereby, for any consideration, title to cannabis or cannabis products are transferred from one Person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(KKK) STATE LICENSE - A permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State of California legislation regarding the same to engage in commercial cannabis activity. (LLL) TESTING LABORATORY - A laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State.
(2) Licensed by the State of California.
(MMM) TOPICAL CANNABIS - A product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Cal. Health and Safety Code, Section 109925.
(NNN) TRANSPORT - The transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA which may be amended or repealed by any subsequent State of California legislation regarding the same. (OOO) UNIQUE IDENTIFIER - An alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(PPP) VOLATILE SOLVENT - Any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. 571
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Examples of VOLATILE SOLVENTS include, but are not limited to, butane, hexane, and propane.
(QQQ) YOUTH CENTER - Any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades where ten or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or similar amusement park facilities. It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on city, county or State parks. This definition shall not include any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor's office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

SEC. 11-455. CANNABIS EMPLOYEE PERMIT REQUIRED.
(A) Any person who is an employee or who otherwise works within a commercial cannabis business must be legally authorized to do so under applicable State law. (B) Any person who is an employee or who otherwise works, manages or is an Owner of a commercial cannabis business must obtain a commercial cannabis employee work permit from the city.
(C) Applications for a commercial cannabis employee work permit shall be developed, made available, and processed by the city manager or his or her designee(s), and shall include, but not be limited to, the following information:
(1) Name, address, and phone number of the applicant;
(2) Age and verification of applicant. A copy of a birth certificate, driver’s license, government issued identification card, passport or other proof that the applicant is at least 21 years of age must be submitted with the application;
(3) Name, address of the commercial cannabis business and the name of the primary manager of that business;
(4) A list of any crimes enumerated in Cal. Bus. and Prof. Code, Section 26057(b)(4) for which the applicant or employee has been convicted;
(5) The application shall be accompanied by fingerprints and a recent photograph of the applicant in a form and manner as required by the city manager or his or her designee(s); (6) A signed statement under penalty of perjury that the information provided is true and correct;
(7) If applicable, verification that the applicant is a qualified patient or primary caregiver; 572
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(8) A fee paid in an amount set by resolution of the city council in an amount necessary to cover the costs of administering the employee work permit programs. The fee is non-refundable and shall not be returned in the event the work permit is denied or revoked. (D) (1) The applicable city department head or his or her designee(s) shall review the application for completeness, shall conduct a background check to determine whether the applicant was convicted of a crime or left a previous employer for reasons that show the applicant:
(a) Has been convicted of a crime involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in Cal. Penal Code, Sections 186.11, 470, 484, and 504a; or
(b) Has committed a felony or misdemeanor involving fraud, deceit, embezzlement; or (c) Was convicted of a violent felony, a crime of moral turpitude; or (d) The illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, except for cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.
(2) Discovery of these facts showing that the applicant is dishonest or has been convicted of the requisite crimes are grounds for denial of the permit. Where the applicant’s sentence (including any term of probation, incarceration, or supervised release) for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is completed, such underlying conviction shall not be the sole ground for denial of a commercial cannabis work permit. Furthermore, an applicant shall not be denied a permit if the denial is based solely on any of the following: (i) a conviction for any crime listed in subsection (D)(1)(d) above for which the applicant has obtained a certificate of rehabilitation pursuant to Cal. Penal Code, Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3, or (ii) a conviction that was subsequently dismissed pursuant to Cal. Penal Code, Sections 1203.4, 1203.4a, or 1203.41 or any other provision of State law allowing for dismissal of a conviction. (E) The applicable department head or his or her designee(s) shall issue the commercial cannabis employee permit or a written denial to the applicant within 30 days of the date the application was deemed complete. In the event the cannabis employee work permit cannot be issued within this time period, then the city manager or his or her designee(s) may issue a temporary work permit for an employee upon completing a preliminary background check and if the business can demonstrate to the city manager or his or her designee(s) that the employee is necessary for the operation of the business. The temporary permit may be immediately revoked by the city manager or his or her designee(s) upon determination that the applicant has failed the background check or upon the issuance of the permanent work permit. (F) An employee work permit shall be valid for a 36-month period and must be renewed every three years. Renewal applications shall contain all the information required in subsection (C) above including the payment of a renewal application fee in an amount to be set by resolution of the city council.
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(G) In the event a person changes employment from one commercial cannabis business in the city to another, the work permit holder shall notify the applicable department head or his or her designee(s) in writing of the change within ten days, or the work permit shall be suspended or revoked, and such person shall not be permitted to work at any commercial cannabis business in the city.
(H) The city may immediately revoke the commercial cannabis employee permit should the permit holder be convicted of a crime listed in subsection (D) above or if facts become known to the city that the permit holder has engaged in activities showing that he or she has been convicted of a crime involving dishonesty.
(I) The city manager or his or her designee(s) is hereby authorized to promulgate all regulations necessary to implement the work permit process and requirements. (J) The applicant may appeal the denial or revocation of a commercial cannabis employee permit by filing a notice of appeal with the city clerk within ten days of the date the applicant received the notice of denial. The city manager or his or her designee shall hear such appeal and his or her decision shall be final and not subject to further appeals. (K) The applicable city department head or his or her designee(s) shall issue a permit in the form of a personal identification card that can be worn in a prominent and visible location. The identification card shall be maintained in good and readable condition at all times.

SEC. 11-456. MAXIMUM NUMBER AND TYPE OF AUTHORIZED COMMERCIAL CANNABIS BUSINESSES PERMITTED.
(A) The number of each type of commercial cannabis business that shall be permitted to operate in the city at any one time shall be as follows:
(1) Cannabis manufacturing - Maximum of eight (8) at any one time, with up to three permits issued to local equity applicants.
(2) Cannabis testing lab - Maximum of one (1) at any one time. (3) Cannabis distributor - Maximum of three (3) at any one time, with up to three permits issued to local equity applicants.
(4) Cannabis retail - Maximum of sixteen (16) at any one time, with up to three permits issued to local equity applicants.
(5) Cannabis cultivation - Maximum of five (5) at any one time. (B) This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the city under each category. Nothing in this article creates a mandate that the city council must issue any or all of the commercial cannabis business permits.
(C) Each year following the city manager’s initial award of commercial cannabis business permits, if any, or at any time at the city council’s discretion, the city council may reassess the 574
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number of commercial cannabis business permits which are authorized for issuance. The city council at its discretion, may determine that the number of commercial cannabis business permits should remain the same, or be expanded.

The commercial cannabis business permit shall only be for a term of 12 months and shall expire at the end of the 12- month period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a commercial cannabis business 575
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permit, unless all of the State and local laws and regulations, including but not limited to the requirements of this article and of the permit, have been complied with. (F) Notwithstanding anything in this article to the contrary, the city manager reserves the right to reject any or all applications if the city manager 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 commercial cannabis business 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 article.
(G) If an application is denied, a new application may not be filed for one year from the date of the denial.
(H) Each Person granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the city council, to cover the costs of administering the commercial cannabis business permit program created in this article. (I) Preservation of rights. The city reserves the right to reject any or all applications. Prior to permit issuance by the city council, the city may also modify, postpone, or cancel any request for applications, or the entire program under this article, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under State law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this article, may be canceled 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 possible rejection for failure to comply with other requirements in this article, an applicant also risks being rejected for any of the following reasons:
(1) Proposal received after designated time and date.
(2) Proposal not containing the required elements, exhibits, nor organized in the required format.
(3) Proposal considered not fully responsive to the request for permit application.

SEC. 11-458. PERSONS PROHIBITED FROM HOLDING A LICENSE OR EMPLOYEE WORK PERMIT.

Any person who has been issued any of the following actions or notices for non-compliance, shall be prohibited from holding a commercial cannabis business permit in the city, with such actions or notices also grounds for denial of a commercial cannabis business permit:
(A) The applicant has been denied a license or has had a license suspended or revoked by any city, county, city and county or any other State cannabis licensing authority; (B) The applicant was notified that they were conducting commercial cannabis activity in non-compliance with this chapter 11 or other City of Oxnard ordinances, codes or requirements in which they failed to discontinue operating in a timely manner; 576
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(C) Evidence that the applicant was in non-compliance of properly paying federal, State or local taxes and/or fees when notified by the appropriate agencies; (D) The applicant was conducting commercial cannabis activity in the city in violation of local and State law.

SEC. 11-459. EXPIRATION OF COMMERCIAL CANNABIS BUSINESS PERMITS.

Each commercial cannabis business permit issued pursuant to this article shall expire 12 months after the date of its issuance. Commercial cannabis business permits may be renewed as provided in section 11-461.

SEC. 11-460. REVOCATION OF PERMITS.

Commercial cannabis business permits may be revoked for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to any policy, procedure or regulation in this article.

SEC. 11-461. RENEWAL OF COMMERCIAL CANNABIS BUSINESS PERMITS. (A) An application for renewal of a commercial cannabis business permit shall be filed at least 60 calendar days prior to the expiration date of the current permit. (B) The renewal application shall contain the current owner and employee information, copy of the owner’s State license, the city business tax certificate, and such other information as required by the city.
(C) The applicant shall pay a regulatory compliance fee in an amount set by city council resolution. The regulatory compliance fee shall not exceed the reasonable cost incurred by the city to administer the program created by this article. The applicant shall pay this annual fee, at the time of renewal, on a yearly basis.
(D) An application for renewal of a commercial cannabis business permit may be rejected if any of the following exists:
(1) The application is filed less than 60 days before its expiration. (2) The commercial cannabis business permit is suspended or revoked at the time of the application.
(3) The commercial cannabis business has not been in regular and continuous operation in the four months prior to the renewal application.
(4) The commercial cannabis business has failed to conform to the requirements of this article, or of any regulations adopted pursuant to this article. (5) The permittee fails or is unable to renew its State of California license. 577
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(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 article, of the city ordinance, or of the State rules and regulations, and the city or State has determined that the violation is grounds for termination or revocation of the commercial cannabis business permit. (E) The city manager or his or her designee(s) is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the city manager or his or her designee(s) is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with State or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the city manager or his or her designee(s) shall be handled pursuant to Sections 11-464 to 11-465. (F) If a renewal application is rejected, a Person may file a new application pursuant to this article no sooner than one year from the date of the rejection.

SEC. 11-462. EFFECT OF STATE LICENSE SUSPENSION, REVOCATION, OR TERMINATION.

Should the State, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of Oxnard.

SEC. 11-463. APPEALS.

Unless specifically provided elsewhere to the contrary, whenever an appeal is specifically provided for in this article, the appeal shall be conducted as prescribed in this article.

SEC. 11-464. APPEAL OF DECISION OF CITY MANAGER OR PLANNING COMMISSION.
(A) Within ten calendar days after the date of a decision of the city manager or his or her designee(s) to revoke, or suspend, 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) Within eighteen calendar days after the date of a decision of the planning commission to approve a special use permit pursuant to this article, 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.
(C) At the time of filing, the appellant shall pay the designated appeal fee in an amount, established by resolution of the city council.
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(D) Appeals shall be conducted in accordance with Section 16-465.

SEC. 11-465. APPEAL HEARING.
(A) Upon receipt of the written appeal pursuant to Section 11-464, 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 the appeal, but in no event later than 90 days from the date of such filing. The city shall notify the appellant of the time and location at least ten 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. The decision of the city council shall be final.

SEC. 11-466. APPEAL OF DECISION OF COMMUNITY DEVELOPMENT DIRECTOR. (A) Within ten calendar days after the date of a decision of the community developer director pursuant to this article, 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. At the time of filing, the appellant shall pay the designated appeal fee, established by resolution of the city council. (B) Upon receipt of the written appeal pursuant to subsection (A), the city clerk shall set the matter for a hearing before the planning commission. The planning commission shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the city. The appeal shall be held within a reasonable time after filing the appeal, but in no event later than 90 days from the date of such filing. The city shall notify the appellant of the time and location at least ten 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. The decision of the planning commission shall be final.

SEC. 11-467. CHANGE IN LOCATION; UPDATED REGISTRATION FORM.

Any time the location of a commercial cannabis business or retailer specified in the regulatory permit is proposed to be changed, the applicant shall be required to first secure a new commercial cannabis business permit, and discretionary land use permit for the new location before moving to that location, with such approvals subject to terminating the commercial cannabis business permit at the existing location so there is no net increase in the number of cannabis business permits issued within the city. The process and the fees shall be the same as for a new facility and in accordance with the regulations specified in this article. No proposed 579
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change in location shall be considered until such time as the original location has first been opened for business for a minimum of one year consistent with the requirement of the city’s regulations.

SEC. 11-468. TRANSFER OF CANNABIS BUSINESS PERMIT.
(A) The holder of a cannabis business permit shall not transfer ownership or control of the permit to another person unless and until the transferee obtains an amendment to the permit from the city manager or his or her designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the city manager or his or her designee in accordance with all provisions of this article (as though the transferee were applying for an original cannabis business permit) accompanied by a transfer fee in an amount set by resolution of the city council (or if not set, shall be the same amount as the application fee), and the city manager or his or her designee determines, after hearing, in accordance with this section that the transferee passed the background check required for permittees and meets all other requirements of this article. The decision of the city manager is final. For the purposes of this subsection (A) “control” shall be deemed to be the aggregate transfer of 40% or more of the ownership of the permit.
(B) Commercial cannabis business permits issued through the grant of a transfer by the city manager or his or her designee shall be valid for a period of one year beginning on the day the city manager or his or her designee 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 article.
(C) Changes in ownership of a permittee business structure or a substantial change in the ownership of a permittee business entity (i.e changes that result in a cumulative change of more than 40% of the original ownership) must be approved by the city manager or his or her designee through the transfer process contained in subsection (A). 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 or his or her designee for a transfer of permit, provided that the membership of the new business entity is substantially similar to original permit holder business entity (at least 60% of the membership is identical). The permit holder shall notify the city manager in writing of the change within ten days of the change. Failure to comply with this provision is grounds for permit revocation.
(E) No commercial cannabis business permit may be transferred when the city manager or his or her designee has notified the permittee that the permit has been or may be suspended or revoked.
(F) Any attempt to transfer a commercial 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.
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(G) Notwithstanding any language in this section to the contrary, no transfer of a local equity ownership interest in a business that obtained its commercial cannabis business permit as a local equity applicant shall be allowed if such proposed transfer would reduce the local equity interest in the commercial cannabis business to a level below that required for a local equity applicant.

SEC. 11-469. CITY BUSINESS TAX CERTIFICATE.

Prior to commencing operations, a commercial cannabis business shall obtain a City of Oxnard business tax certificate, pursuant to article I.

SEC. 11-470. BUILDING PERMITS AND INSPECTION.

Prior to commencing operations, a commercial 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), the fire department approvals, health department approvals and other zoning and discretionary land use permit(s) and approvals.

SEC. 11-471. CERTIFICATION FROM THE COMMUNITY DEVELOPMENT DIRECTOR.

Prior to submittal of a commercial cannabis business permit, the applicant shall obtain a zoning clearance (ZC) and zoning verification letter (ZVL) from the community development director or his or her designee(s) certifying that the business is located on a site that meets all of the requirements of chapter 16 and this article. A fee shall be established by city council resolution for submittal and processing of this certification.

SEC. 11-472. RIGHT TO OCCUPY AND TO USE PROPERTY.
(A) As a condition precedent to the city’s issuance of a commercial cannabis business permit pursuant to this article, any Person intending to open and to operate a commercial 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 the property owner, 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 article and consents to the operation of the commercial cannabis business on the owner’s property.
(B) The lease, sublease or other agreement to occupy the property must be at fair market value and not have any terms or conditions for the permittee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the city. In addition, all leases, subleases, or other agreements must be based on a monthly rate.
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SEC. 11-473. LOCATION AND DESIGN OF CANNABIS BUSINESSES.

Specific types of commercial cannabis businesses are subject to the following zoning and locational requirements:
(A) All cannabis manufacturing, testing, and distribution businesses have been conceptually identified on land use maps, with actual siting subject to land use siting criteria and buffer requirements stipulated in this article. Manufacturing, testing, and distribution facilities are conceptually permitted on property zoned limited manufacturing (ML), light manufacturing (M1), heavy industrial (M2), and business and research park (BRP), as well as auto sales and service, business park, and commercial manufacturing zones within the Rose Santa Clara Corridor Specific Plan. Manufacturing, testing, and/or distribution facilities may also be located in the following specific plan areas subject to relevant specific plan requirements: Northeast Community Specific Plan, Sakioka Farms, Camino Real Business Park, McInnes Ranch Business Park Specific Plan, and Northfield Seagate Business Park Specific Plan. (B) Cultivation is conceptually permitted on property zoned limited manufacturing (ML), light manufacturing (M1), heavy industrial (M2), and business and research park (BRP). Cultivation may also be located in the following areas subject to relevant specific plan requirements: Sakioka Farms Business Park Specific Plan; McInnes Ranch Business Park Specific Plan; Arcturus Ave.; Northfield & Seagate Business Park Specific Plan; Channel Island Business Center; and Statham Business Park.
(C) All cannabis retail dispensary businesses have been conceptually identified on land use maps, with actual siting subject to land use siting criteria and buffer requirements as stipulated in this subsection (C). Retailers are conceptually permitted in property zoned neighborhood shopping center (C-l), neighborhood shopping center planned development (C-l-PD), general commercial (C-2), general commercial planned development (C-2-PD), coastal neighborhood commercial (CNC), and commercial planned development (CPD), business park, retail commercial, and commercial manufacturing zones within the Rose Santa Clara Corridor Specific Plan. Retail dispensaries may also be located in the following specific plan areas subject to relevant specific plan requirements: RiverPark - commercial office, commercial convention, and commercial regional, Sakioka Farms, and Camino Real Business Park. (D) Compliance with any specific plan requirements.
(E) The property on which any commercial cannabis business is located must also meet all of the following distance requirements:
(1) It shall be no closer than 600 feet of any of the following:
(a) Any school providing instruction in kindergarten or any grades 1 through 12, whether public, private, or charter, including pre-school, transitional kindergarten, and K-12. (b) A commercial daycare center licensed by the city or county that is in existence at the time the license is issued, unless the State licensing authority or the city specifies a different radius.
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(c) A youth center that is in existence at the time the license is issued, unless the State licensing authority or the city specifies a different radius. (2) The distance specified in this subsection shall be the horizontal distance measured in a straight line from the property line of the identified use to the closest property line of the lot on which the cannabis use is located without regard to intervening structures. (F) Each proposed commercial cannabis business use shall:
(1) Conform with the city’s general plan, any applicable specific plans, master plans, and design requirements.
(2) Comply with all applicable zoning, and specific plan requirements, and related development standards.
(3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. (4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development. (5) Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate.
(6) Be provided with adequate electricity, sewerage, disposal, water, fire protection (sprinkler and alarm; retrofit when determined necessary by the fire marshal) and storm drainage facilities for the intended purpose.

SEC. 11-474. LIMITATIONS ON CITY’S LIABILITY.

To the fullest extent permitted by law, the City of Oxnard shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this article or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial 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 Oxnard 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 commercial cannabis business permit, the city’s decision to approve the operation of the commercial cannabis business or activity, the process used by the city in making its decision, or the alleged violation of any federal, State or local laws by the commercial cannabis business or any of its officers, employees or agents. (B) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city manager.
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(C) Reimburse the City of Oxnard for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of Oxnard may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s commercial cannabis business permit, or related to the city’s approval of a commercial cannabis activity. The City of Oxnard 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.

SEC. 11-475. CANNABIS DELIVERY FROM OUTSIDE THE CITY.
(A) Cannabis delivery from outside the city is only allowed from state licensed operators who meets the following requirements:
(1) First obtain an Oxnard Business Tax Certificate;
(2) Provide the City with a copy of the State license issued by the Department of Cannabis Control that authorizes such deliveries; and
(3) During delivery into the city, the delivery driver from the state licensed operator displays the following information in each delivery vehicle at all times:
(a) A copy of a City of Oxnard Business Tax Certificate. (b) A copy of a State license issued by the Department of Cannabis Control. (B) Cannabis deliveries from within the city are only allowed from city licensed commercial cannabis retailers.

SEC. 11-476. RECORDS AND RECORDKEEPING.
(A) Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, 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 commercial cannabis business permit issued pursuant to this article), or at any time upon reasonable request of the city, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous 12-month period (or shorter period based upon the timing of the request), provided on a permonth basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid. On an annual basis, each owner and operator shall submit to the city a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the city manager or his or her designee(s). (B) Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the city manager or his or her designee(s) upon a reasonable request. (C) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis 584
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and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth MAUCRSA. (D) Each commercial cannabis business shall allow the city to have access to the businesses books, records, accounts, together with any other data or documents relevant to its permitted commercial 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 24 hours after receipt of the city’s request, unless otherwise stipulated by the city. The city may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware.

All safes and vaults shall be compliant with Underwriter Laboratories burglary-resistant and fireresistant standards. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss. 585
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(9) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weatherproof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the city manager or his or her designee(s), and that it is compatible with the city’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the city manager or his or her designee(s). Video recordings shall be maintained for a minimum of 90 days and shall be made available to the city manager or his or her designee(s) upon request.

Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business, and shall be capable of enlargement via projection or other means. Internet protocol address information shall be provided to the Oxnard police department by the commercial cannabis business, to facilitate remote monitoring of security cameras by the department or its designee.
(10) Sensors shall be installed to detect entry and exit from all secure areas, and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.
(11) Panic buttons shall be installed in all commercial cannabis businesses with direct notification to Oxnard police department dispatch, and shall be configured to immediately alert dispatch for the Oxnard police department.
(12) Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services.
(13) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building. (14) Security personnel shall monitor premises in accordance with a security plan as authorized by the city manager or his or her designee(s), and must have a verified response security patrol when closed. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager or his or her designee(s), with such approval not to be unreasonably withheld. Firearms may be carried by security personnel while they are on duty if authorized by the police chief.
(15) Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. (16) Entrance areas are to be locked at all times and under the control of a designated responsible party that is either: (a) an employee of the commercial cannabis business; or (b) a licensed security professional.
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(17) Each commercial cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails or both product and cash, where applicable. (18) Each commercial cannabis business shall demonstrate to the police chief, city manager or their designees compliance with the State’s track and trace system for cannabis and cannabis products, as soon as it is operational.
(19) Each commercial cannabis business shall have state of the art network security protocols in place to protect computer information and all digital data. (20) Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises.
(B) Each commercial cannabis business shall identify a designated security representative/liaison to the City of Oxnard, who shall be reasonably available to meet with the city manager or his or her designee(s) regarding any security related measures and/or operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the city manager or his or her designee upon request that meets the following requirements:
(1) Confirms that a designated manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.
(2) Identifies all managers of the commercial cannabis business and their contact phone numbers.
(3) Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.
(4) Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.
(5) Identify a sufficient number of licensed, interior and exterior security personnel who will monitor individuals inside and outside the commercial cannabis business, the parking lot, and any adjacent property under the business’s control. (6) Confirm that the licensed security personnel shall regularly monitor the parking lot and any adjacent property to ensure that these area are: (a) free of individuals loitering or causing a disturbance; (b) are cleared of employees and their vehicles one-half hour after closing. (C) As part of the application and permitting process, each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency. (D) The commercial cannabis business shall cooperate with the city whenever the city manager or his or her designee(s) makes a request, without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this article. Prevention fire inspectors shall be allowed access to audit buildings for fire life safety concerns on a yearly basis or as determined necessary per the fire marshal.
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(E) A commercial cannabis business shall notify the city manager or his or her designee(s) within 24 hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city manager or his or her designee(s). (2) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business. (3) The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the commercial cannabis business. (4) Any other breach of security.
(F) Compliance with the foregoing requirements shall be verified by the city manager or his or her designee prior to commencing business operations. The city manager or his or her designee may supplement these security requirements once operations begin, subject to review by the city manager if requested by the business owner.

SEC. 11-478. RESTRICTION ON ALCOHOL AND TOBACCO SALES.
(A) No Person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the commercial cannabis business. (B) No Person shall cause or permit the sale or tobacco products on or about the premises of the commercial cannabis business.

SEC. 11-479. FEES AND CHARGES.
(A) No Person may commence or continue any commercial cannabis activity in the city without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by resolution of the city council which may be amended from time to time.
(B) All commercial cannabis businesses authorized to operate under this article shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State and local law. Each commercial cannabis business shall cooperate with the city with respect to any reasonable request to audit the commercial cannabis business’s 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. (C) Prior to operating in the city and as a condition of issuance of a regulatory permit, the operator of each cannabis facility shall enter into an operational agreement with the city setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this article, including, but not limited to, public outreach and education, 588
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community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.

Furthermore, any system selected must be approved and authorized by the city manager or his or her designee(s) prior to being used by the permittee.
(E) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations.
(F) Emergency contact and emergency response plan - Each commercial cannabis business shall provide the city manager or his or her designee(s) with the name, telephone number (both landline and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. Each commercial cannabis business must have a fire evacuation plans, and plan to address robberies and other emergencies. Said plan shall be reviewed and approved by the fire and police chiefs or designee. (G) Signage and notices -
(1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of the City of Oxnard regulations, including, but not limited to, seeking the issuance of a city sign permit. (2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window.
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(3) Each entrance to a commercial 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 commercial 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 commercial 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 commercial cannabis business or elsewhere including, but not limited to, the public right-of-way. (5) Signage may be internally illuminated or externally illuminated with directed and shielded downward facing lighting consistent with city regulations and the conditions of approval. All signs shall conform with Section 16-595. Signage shall not feature exposed elements.
(6)No banners (with the exception of permitted Grand-Opening Banners), flags, or other prohibited signs may be used at any time.
(H) Minors -
(1) Persons under the age of 21 years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this article for any Person to employ any person at a commercial cannabis business who is not at least 21 years of age. (2) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of 21 years of age is permitted to enter upon the premises of the commercial cannabis business, unless otherwise authorized by state law. (I) Odor control - Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial 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 commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the community development director or his or 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 commercial cannabis businesses interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. (J) Display of permit and city business tax certificate - The original copy of the commercial cannabis business permit issued by the city pursuant to this article and the city issued business 590
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tax certificate shall be posted inside the commercial cannabis business in a location readilyvisible to the public. (K) Background check - Pursuant to Cal. 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, supervisor, employee, contract employee or who otherwise works in a commercial cannabis business must submit fingerprints and other information deemed necessary by the police chief or his or her designee(s) for a background check by the City of Oxnard police department. Pursuant to Cal. 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 the record, no Person shall be issued a permit to operate a commercial cannabis business or a related work permit unless they have first cleared the background check, as determined by the police chief or his or her designee(s), as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City of Oxnard to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted. (L) Loitering - The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within 50 feet of the premises.

SEC. 11-481. OTHER OPERATIONAL REQUIREMENTS.

The city manager or his or her designee may develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety and welfare. Minor changes may occur to the approved conditions of the special use permit (SUP) or a development design review (DDR) permit pursuant to Section 16-560.

SEC. 11-482. OPERATING REQUIREMENTS FOR TESTING LABORATORIES. (A) Testing laboratories shall be required to conduct all testing in a manner pursuant to Cal.

Bus. and Prof. Code, Section 26100 and shall be subject to State and local law. Each testing laboratory shall be subject to additional regulations as determined from time to time as more regulations are developed under this article and any subsequent State of California legislation regarding the same.
(B) Testing laboratories shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.
(C) All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Department of Cannabis Control. 591
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(D) Testing laboratories shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the Department of Cannabis Control unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the Bureau of Cannabis Control. (E) Each operator shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing required by State law and that the testing laboratory employee transports the sample to the testing laboratory. (F) Except as provided by State law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with State law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (G) A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A testing laboratory shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received. (H) Approval of testing laboratories shall be through approval of a development design review (DDR) permit to be issued by the community development director of the City of Oxnard.

The appeal of the approval or denial of such permit shall be to the planning commission pursuant to Section 11-466.

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(E) A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded and the recording kept available to State and local authorities for a minimum of 180 days, pursuant to Cal. Code of Regulations, Title 16, Section 5305.
(F) A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing laboratory as being in compliance with state health and safety requirements pursuant to Cal. Code of Regulations, Sections 5705, 5710 and 5714 of Title 16. (G) Approving of distributor shall be through the approval of a development design review (DDR) permit to be issued by the community development director of the City of Oxnard. The appeal of the approval or denial of such permit shall be to the planning commission pursuant to Section 11-466.

SEC. 11-484. OPERATING REQUIREMENTS FOR CANNABIS MANUFACTURING:

EDIBLES AND OTHER CANNABIS PRODUCTS; SALE OR DISTRIBUTION OF EDIBLE AND OTHER CANNABIS PRODUCTS.
(A) Cannabis manufacturing facilities requiring a type-6, type-7, type S, or any subsequent created manufacturing State license (using non-volatile and volatile solvents) as defined in MAUCRSA, may be permitted to operate within those zone districts as defined in the City of Oxnard code.
(B) Any compressed gases used in the manufacturing process shall not be stored on any property within the City of Oxnard in containers that exceeds the amount which is approved by the Oxnard fire department and authorized by the regulatory permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of compressed gas tanks allowed on the property at any one time, as determined by the Oxnard fire department. (C) Cannabis manufacturing facilities may use the hydrocarbons N-butane, isobutane, ethanol, propane, or heptane or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by the community development department. These solvents must be of at least 99% purity and any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present.
(D) If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use. The CO2 must be of at least 99% purity.
(E) Closed loop systems for compressed gas extraction systems must be used and must be commercially manufactured and bear a permanently affixed and visible serial number. (F) Certification from an engineer licensed by the State of California, or from a State certified professional engineer or state certified industrial hygienist from another state, must be provided 593
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to the community development department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
(1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM). (G) The certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified. (H) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Oxnard fire department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes.
(I) Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. (J) Cannabis manufacturing facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. (K) Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.
(L) Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely. (M) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested.
(N) Approval of manufacturing facilities shall be through approval of a development design review (DDR) permit to be issued by the community development director of the City of Oxnard.

The appeal of the approval or denial of such permit shall be to the planning commission pursuant to Section 11-466.

SEC. 11-485. OPERATING REQUIREMENTS FOR RETAIL FACILITIES. (A) No more than the number of cannabis retailers authorized by Section 11-456 shall operate within the City of Oxnard at any one time.
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(B) Approval of retail dispensaries shall be through approval of a special use permit to be issued by the planning commission pursuant to Section 16-531. The appeal of the approval or denial of such special use permit shall be to the city council pursuant to sections 11-464 and 11- 465.
(C) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of 18 years. If the potential customer is 18 to 20 years old, retailer shall confirm the customer’s possession of a state issued medical cannabis card. Persons 18 to 20 years old who are unable to produce the necessary documentation cannot purchase cannabis legally and are to be denied admittance to the retail facility. For adult-use purchases, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.
(D) Entrances into the retailer shall be locked at all times with entry strictly controlled. A “buzz-in” electronic/mechanical entry system shall be utilized to limit access to and entry to the retail area to separate it from the reception/lobby area. Individuals must show their governmentissued identification or a medical cannabis card issued pursuant to Cal. Health and Safety Code, Section 11362.71 in order to gain access into the retailer. The government-issued identification and, if applicable, doctor’s recommendation or cannabis card must also be shown at the point of sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.
(E) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if authorized by the police chief. (F) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.
(G) All restroom facilities shall remain locked and under the control of management. (H) Retailers authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this subsection. (1) The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.
(2) Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle. (3) No cannabis shall be sold and/or delivered by any means or method to any person within a motor vehicle.
(4) All cannabis goods sold by a retailer shall be contained in child-resistant packaging. (5) Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must 595
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allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity. (6) A retail licensee who is engaged in retail sale shall hire or contract for security personnel who are at least 21 years of age to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Cal. Bus. and Prof. Code, Chapters

11.4 and 11.5 of Division 3.
(I) Access to retailer premises -
(1) Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least 21 years of age.
(2) Notwithstanding subsection (I)(1) above, individuals who are at least 18 years of age and in possession of a state issued medical cannabis card shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis. (J) Authorized sales - A retailer shall only sell adult-use cannabis and adult-use cannabis products to individuals who are at least 21 years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, but not yet 21, if those individuals are in possession of a valid state issued cannabis card. Medicinal cannabis sales to individuals 21 years of age and older are unrestricted. (K) Limited access areas - A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the police chief or the development services director upon request.
(L) Operating hours of the retailer license shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week or a reduced duration as stipulated through the discretionary land use permit.
(M) Parking requirements shall be in accordance with chapter 16, article X of the Oxnard city code - 1 parking space per 250 square feet or as stipulated in a city traffic engineer approved parking study via a request for administrative parking relief pursuant to Section 16-651.

Commercial cannabis retail businesses proposed to be located within the Downtown Specific Plan area may pay a downtown parking management in-lieu fee to meet off-street parking requirements.
(N) Retail security requirements. All security measures required by section 11-477 (operational standards) are directly applicable to and binding on all commercial cannabis businesses, including all retailers.
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SEC. 11-486. OPERATING REQUIREMENTS FOR RETAILERS WITH DELIVERY SERVICE.
(A) Retailers located within the city that provide delivery are required to verify the age and the necessary documentation of each medical customer to ensure the customer is not under the age of 18 years, and to verify that the potential customer has a valid state issued cannabis card. The age verification requirement applies to both the customer and any person accepting delivery on behalf of the customer. If the latter, the individual must be at least 21 years of age. (B) Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis Products.
(C) The year, make, model, color, license plate number, and vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis or cannabis Products. (D) Proof of insurance as required in section 11-474(B) for any and all vehicles being used to deliver cannabis or cannabis Products.
(E) The licensee shall provide the city with the information required by this section in writing for any new vehicle that will be used to deliver cannabis and/or cannabis Products prior to using the vehicle to deliver cannabis and/or cannabis Products. (F) The Commercial cannabis Business shall provide the city with any changes to the information required by this section in writing within 30 calendar days. (G) Delivery of cannabis products originating from the City of Oxnard are not authorized except from a retailer who has obtained both the necessary city and State permits and is in full compliance with this Section.

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(E) In no case shall cannabis plants be visible from the exterior of the building. (F) From a public right-of-way, there shall be no exterior evidence of commercial cannabis cultivation except for any signage authorized by the city. All signs shall conform with Section 16-595.
(G) Any pesticides and/or fertilizers used at the cultivation site shall be properly labeled and stored in accordance with Fire Dept. and City regulations to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. (H) A commercial cannabis cultivation licensee shall comply with all applicable federal, State and local laws and regulations regarding use and disposal of pesticides and fertilizers. (I) Each commercial cannabis cultivation licensee shall submit the following in addition to the information required to secure approval of a commercial cannabis business permit:
(1) A cultivation and operations plan shall be submitted for City review and approval which will identify the type(s) of cannabis plant to be grown (species/strain), cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting. (2) A monthly and yearly projected water usage plan. The plan shall include water conservation and recycling measures for capture and reuse of on site water, water treatment plan and wastewater discharge plan. Said plan shall be reviewed and approved by the City.

Every attempt should be made by the licensee to connect to the City’s recycled water line when feasible.
(3) An energy usage and conservation plan which identifies the sources of power, projected monthly and yearly usage, and efficiency plan, including use of on site renewables. (4) Neighborhood compatibility plan which shall address odor security, safety, and other compatibility issues which may derive from the cultivation site and as requested by the City. (5) Floor plan identifying the location, dimensions, and boundaries of all proposed canopy areas taking into account space needed for ongoing care of plants and a description of the proposed method of physically delineating those boundaries at the site. (J) A permittee shall only be allowed to cultivate the square feet of canopy space permitted by State law and in the Commercial Cannabis Business Permit issued by the city for the premises.

SEC. 11-488. PROMULGATION OF REGULATIONS, STANDARDS AND OTHER LEGAL DUTIES.
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(A) In addition to any regulations adopted by the city council, the city manager or his or her designee is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses and the city’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this article. (B) Regulations shall be published on the city’s website. (C) Regulations promulgated by the city manager shall become effective upon date of publication. Commercial 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 or her designee.
(D) Testing laboratories, distribution facilities and special events shall be subject to State law and shall be subject to additional regulations as determined from time to time as more regulations are developed pursuant to this section and any subsequent State of California legislation regarding the same.

SEC. 11-489. COMMUNITY RELATIONS.
(A) Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within 600 feet of the commercial cannabis business.
(B) During the first year of operation pursuant to this article, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this article shall attend quarterly meetings with the city manager or his or her designee(s), and other interested parties as deemed appropriate by the city manager or his or her designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of this article. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the city manager or his or her designee(s) when and as requested by the city manager or his or her designee(s).
(C) Commercial cannabis businesses to which a permit is issued pursuant to this article shall describe benefits that the cannabis business would provide to the local community, such as community contributions, volunteer services and/or economic incentives, stated in the Community Benefits Agreement.

SEC. 11-490. PERMIT HOLDER RESPONSIBLE FOR VIOLATIONS.

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employee or agent of the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder’s presence.

SEC. 11-491. INSPECTION AND ENFORCEMENT.
(A) The city manager, or his or her designee(s) charged with enforcing the provisions of the City of Oxnard code, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this article or under applicable provisions of State law.
(B) It is unlawful for any Person having responsibility over the operation of a commercial 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 commercial cannabis business under this article 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 commercial cannabis business under this article or under State or local law.
(C) The city manager, or his or her designee(s) charged with enforcing the provisions of this article may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes.

Any samples obtained by the City of Oxnard shall be logged, recorded, and maintained in accordance with established procedures by the City of Oxnard city manager or these regulations.

SEC. 11-492. COMPLIANCE WITH STATE REGULATIONS.

It is the stated intent of this article to regulate commercial cannabis activity in the City of Oxnard in compliance with all provisions MAUCRSA and any subsequent State legislation.

SEC. 11-493. VIOLATIONS DECLARED A PUBLIC NUISANCE.

Each and every violation of the provisions of this article is hereby deemed unlawful and a public nuisance.

SEC. 11-494. EACH VIOLATION A SEPARATE OFFENSE.

Each and every violation of this article shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City of Oxnard. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, any permit issued pursuant to this article being deemed null and void, disgorgement and payment to the city for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any 600
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other relief or remedy available at law or in equity. The City of Oxnard may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city manager, or his or her designee(s), may take immediate action to temporarily suspend a commercial cannabis business permit issued by the city, pending a hearing before the city manager, or his or her designee(s).

SEC. 11-495. PENALTIES.

The fine for operating an unlicensed and/or unpermitted commercial cannabis business shall be $30,000 per day and the issuance of a notice to appear in court. Each day a violation is committed or permitted to continue shall constitute a separate offense. At the discretion of the city manager or his or her designee, higher or lower fines or penalties may be recommended based on the facts of individual cases where generally supported by aggravating or mitigating circumstances. Aggravating factors may include, but are not limited to: prior disciplinary history, nature and severity of the act(s), violations, offenses, or crime(s) under consideration, actual or potential harm to the public, actual or potential harm to any consumer, prior warning letters, licensee involvement, premises in high crime area, lack of cooperation by licensee in investigation, appearance and actual age of minor, continuing course or pattern of conduct.

Mitigating factors may include, but are not limited to: length of licensure at subject location without prior discipline problems, positive action by licensee to correct problem, documented training of licensee and employees and cooperation by licensee in investigation.

SEC. 11-496. 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. 601
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Section 2. Amend OCC Chapter 16, Article III, Division 11, Section 16-163 to read as follows:

SEC. 16-163. INDUSTRIAL LAND USES BY ZONE: INDUSTRIAL LAND USE MATRIX.

The allowed land uses in the industrial zoning districts are identified in the following table, subject to the limitations identified in the Notes Section.

Industrial Land Use Matrix
Key:

Blank: Not Allowed P: Permitted Use (Requires a Zone Clearance) SUP: Special Use Permit DDR: Development Design Review Permit Land Use Zone District
CM BRP M-L M-1 M-2 Notes
Administrative, executive, and/or corporate
offices which are a part of a predominantly
industrial operation, including
governmental offices and facilities

P P P P P
Administrative, financial, professional,
medical, and general office services

P P SUP
Adult businesses, except adult motels P P P P Refer to section 16-337 Adult day care facilities P P
Adult motels P Refer to section 16-336
Agricultural and construction vehicle sales
with incidental repair and service

SUP DDR DDR
Agricultural, limited to growing of crops P P P P P
Aircraft modification, storage, repair, and
maintenance
P P
Aircraft sales P P P P
Alcohol sales: on-site, off-site, and wine
tasting

SUP SUP SUP SUP
Ambulance base facilities P P P P P
Appliance repairs P P P
Asphalt or concrete manufacture or refining DDR
Assembly or repair of small electrical and
electronic equipment
P P P
Assisted living residential facility SUP
Auction houses P P P P P
Boat building and repair P P
Boiler repair and maintenance P P
Book binding P P P P P
Bottling/canning plants P P P
Breweries, microbrew
(less than 60,000 barrels). A SUP is
required if including tasting rooms

DDR DDR DDR DDR
Breweries, craft
(more than 60,000 barrels, less than 2

DDR DDR DDR DDR
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million barrels). A SUP is required if
including tasting rooms
Breweries, large
(more than 2 million barrels)

DDR DDR
Brick, tile, or terra cotta manufacture DDR DDR
Business furniture, supplies, and equipment
sales
P P P
Cabinet or carpenter shops P P P P
Cafeterias accessory to permitted uses for
the convenience of persons employed on the
premises

P P P P
Carpet, rug, and dry-cleaning plants P P P P
Cement, glass, lime, gypsum, or plaster
manufacture
DDR
Ceramic products P P P P
Children’s day care facility serving more
than 15 children

SUP SUP
Churches SUP SUP SUP SUP SUP Refer to section 16-
162(B)
Coffee shops, cafes P P DDR DDR DDR
Cold storage facilities including agricultural
freezers and ice production and sales
P P P
Commercial and retail uses P DDR DDR DDR Refer to section 16-171 Commercial Cannabis Activities
Cultivation DDR DDR DDR DDR Refer to sections 11-
473 and 16-173
Distribution DDR DDR DDR DDR Refer to sections 11-
473 and 16-173
Manufacturing DDR DDR DDR DDR Refer to sections 11-
473 and 16-173
Retail SUP Refer to sections 11-
473 and 16-173
Testing DDR DDR DDR DDR Refer to sections 11-
473 and 16-173
Commercial recreational and entertainment
uses, such as batting cages, gymnasiums,
boxing gyms, escape rooms, bowling alleys,
skating rinks, and similar recreational uses
as determined by the planning manager

DDR DDR DDR DDR
Computer and business machine sales and
service
P P P
Convenience markets and drugstores P DDR
Corporate training and professional
development facilities including ancillary
outdoor activities

P P P P P
Day care facilities accessory to industrial
uses

DDR DDR DDR
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Day care facilities (over 12 children) as a
principal use

DDR DDR
Distribution, warehousing, and wholesaling P P P P P
Drive-through services SUP SUP SUP
Drop forge industries DDR
Dwelling unit, one per establishment, for
security or management when located on
the premises where such person is
employed in such capacity and accessory to
an industrial use

DDR DDR DDR DDR
Electric motor rebuilding P P P P
Electrical and lighting supply P P
Electronic and computer repair P P P
Emergency shelter for families SUP P
Emergency shelter, permanent SUP P
Emergency shelter, temporary SUP P
Employment agencies P P
Energy generation, distribution, storage, and
support facilities, including electrical and
gas utilities

SUP SUP SUP SUP DDR
Explosives, manufacture or storage DDR
Farmworker housing SUP P P P
Feed sales P P P
Fertilizer manufacture DDR
Firearm and ammunition sales SUP Refer to Chapter 16,
Division 19
Fish smoking, processing, curing, or
canning

DDR DDR
Florists P P
Freight classification yard, including truck
and bus storage and maintenance
DDR P
Furniture manufacture and assembly P P P P
Furniture upholstery shops P P P
Garbage, offal, or dead animal reduction or
dumping
P
Garment manufacturing P P P P
Gas bulk storage, manufacturing, and
distribution of flammable liquids and all
gases
DDR
General office, including legal,
professional, medical, consulting, or similar
P P
Indoor firearm range SUP Refer to Chapter 16,
Division 20
Iron, steel, brass, or copper foundry or
fabrication plant

SUP DDR
Kennels and animal boarding DDR DDR DDR DDR
Kennel day care P P P P
Laboratories, research only P P
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Laundry, commercial P P P P
Light metal fabrication (for example, sheet
metal, wrought iron, and the like)

P P P P
Lumber yards with incidental sales of
building and hardware supplies (outside
storage)

SUP SUP P
Machine shops P P P P
Manufacture and assembly of electrical and
electronic instruments, devices, and
components

P P P P P
Manufacturing and maintenance of electric
neon signs

P P P P
Manufacturing, compounding assembly, or
treatment of articles or merchandise from
prepared materials such as, but not limited
to, canvas, cloth, stones, wood products,
and leather
P P P
Manufacturing, compounding, processing,
packaging, or treatment of food products
such as, but not limited to, bakery, dairy,
fruits and vegetables, and honey
P P P
Marine equipment sales with incidental
repair and service

P P P P
Medical product sales P P P
Medical: hospitals and medical centers SUP
Metals recycling and storage, including
sales

SUP DDR
Mini-warehouses and self-storage facilities SUP SUP SUP SUP Refer to Resolution No. 6446
Mobile home sales and display DDR DDR DDR DDR
Motels, hotels, and convention facilities SUP SUP
Multifamily Residential uses up to 30
dwelling units per acre on parcels identified
in the AHD additive zone, subject to the
provisions in section 16-420
SUP
Off-site non-accessory signs or billboards SUP Refer to section 16- 608(G)
Oilcloth or linoleum manufacture P
Outdoor storage or assembly as a primary
use
SUP
Outdoor storage, incidental/accessory to
uses otherwise permitted

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Planning mills SUP DDR
Plastic manufacture P P
Plumbing supply P P P
Printing shop, lithographing, photocopying,
blueprinting, and publishing

P P P P P
Product assembly plants and production
facilities primarily engaged in final or
partial assembling of packaging of
premanufactured, treated, or fabricated
components, materials, or products

P P P P P
Public service uses - communications, fire
and police, water, and other governmental
or public facilities

DDR DDR
Recycling mobile unit: mobile recycling
unit used for the collection of recycled
materials including the bins, boxes, or
containers for the collection of recyclable
materials

DDR DDR DDR DDR
Recycling processing facility: processing
facility for ferrous and non-ferrous
materials including the preparation of
material for efficient shipment which
includes baling, briquetting, flattening,
grinding, crushing, mechanical sorting,
shredding, cleaning, and re- manufacturing.

Outdoor bin storage allowed for the
collection of recycled materials

SUP SUP
Refrigeration and air conditioning repair
and service

P P P P
Research and development, experimental or
developmental laboratories

P P P P
Research, development, and clinical
laboratories and uses including associated
incidental and outpatient clinics
P
Restaurants and delicatessens P P P DDR DDR
Rock crusher or distribution of rock, sand,
or gravel
DDR
Sale of building and hardware supplies
within a building

P P P P
Specialized commercial retail centers
oriented toward major transportation
elements such as freeways, expressways,
SUP
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and other major transportation corridors.

Specialized commercial uses include
promotional, discount, factory outlet, and
off-price shopping centers, as well as
centers that are tourist-oriented or oriented
to other specialized markets. Specialized
commercial uses may also include general
commercial uses in special or unique
settings
Stationery and office supplies P P
Supportive housing SUP
Taxidermist P P P
Textiles manufacturing P P P
Trade schools, public and private schools
and colleges, dance, and performing arts
studios

P P DDR
Transitional housing SUP
Vehicle assembly SUP DDR
Vehicle and equipment dismantling and
recycling, including sale of parts and
vehicles
SUP
Vehicle rental agencies DDR DDR DDR
Vehicle repair, including engine overhaul,
body and fender work, transmission,
radiator repair, painting, and upholstering

SEC. 16-173. DEVELOPMENT DESIGN REVIEW PERMIT REQUIRED FOR SPECIFIC COMMERCIAL CANNABIS ACTIVITIES.
(A) A commercial cannabis business for cultivating, manufacturing, testing and/or distribution of cannabis may be permitted in the business and research park (BRP) zone, the limited manufacturing (ML) zone, the light manufacturing (M-1) zone, and the heavy manufacturing (M-2) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a development design review (DDR) permit. 607
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(B) A commercial cannabis business for retail uses may be permitted in the business and research park (BRP) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a special use permit. (C) A commercial cannabis business for retail uses may be permitted in the planned development (additive) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a special use permit (SUP). A commercial cannabis business for cultivating, manufacturing, testing and/or distribution of cannabis may be permitted in the planned development (additive) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a development design review (DDR) permit.

Section 4. Article XVI of Chapter 11 of the Oxnard City Code (Oxnard City Code Section 11-450 to 11-496) is hereby amended.

Section 5. This ordinance shall apply to applications for land use approvals that are filed on or after the effective date of this ordinance and to applications for land use approvals that have been filed but have not been accepted as complete as of the effective date of this ordinance.

Section 6. Cumulative Ordinance. Nothing in this Ordinance shall be interpreted to allow any land use which is not expressly listed as permitted or conditionally permitted within the City’s Zoning Code.

Section 7. The City Clerk shall certify as to the adoption of this Ordinance and shall cause summary thereof to be published within fifteen calendar (15) days of the adoption and shall post a certified copy of this Ordinance, including for and against the same, in the office of the City Clerk, in accordance with Government Code Section 36933. Ordinance No. ______ was first read on _____________, to become effective thirty (30) days thereafter. [Remainder of Page Left Intentionally Blank]
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PASSED AND ADOPTED this ___ day of ______________ by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
John Zaragoza, Mayor
ATTEST:
________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
________________________________
Stephen M. Fischer, City Attorney
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ARTICLE XVII. COMMERCIAL CANNABIS ACTIVITY
SEC. 11-450. PURPOSE AND INTENT.

SEC. 11-451. LEGAL AUTHORITY.

SEC. 11-452. CANNABIS CULTIVATION AND COMMERCIAL CANNABIS ACTIVITIES PROHIBITED UNLESS SPECIFICALLY AUTHORIZED BY THIS ARTICLE.

Except as specifically authorized in this article, the commercial cultivation, manufacturemanufacturing, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under Cal. Bus. and Prof. Code, Section 26090(e)), of cannabis or cannabis product is expressly prohibited in the City of Oxnard.

SEC. 11-453. COMPLIANCE WITH STATE AND LOCAL LAWS.

It is the responsibility of the owners and operators of a commercial cannabis business to ensure that it is always operating in a manner compliant with all applicable State and local 1 610
laws, and any regulations promulgated thereunder. Nothing in this article shall be construed as authorizing any actions that violate federal, State law or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners and the operators of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable federal, State and local laws, including the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), and any subsequently enacted State law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the local commercial cannabis business permit. Nothing in this article shall be construed as authorizing any actions that violate federal or State law regarding the operation of a commercial cannabis business.

SEC. 11-454. DEFINITIONS.

When used in this article, 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) A-LICENSE - A State license issued by the BureauDepartment of Cannabis Control (DCC) for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendationsa valid State issued medical cannabis card.
(B) A-LICENSEE - Any personPerson holding a license for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendationsa state issued medical cannabis card.
(C) APPLICANT - An owner applying for a commercial cannabis business permit pursuant to this article.
(D) BATCH - A specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1) HARVEST BATCH - A specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals and harvested at the same time.
(2) MANUFACTURED CANNABIS BATCH - Either of the following:
(a) An amount of cannabis concentrates or extract that is produced in one production cycle using the same extraction methods and standard operating procedures. (b) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures. (E) BUREAU - The Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation, or its successor. 2 611
(F) CANNABIS - 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 cannabis. 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 article, CANNABIS does not mean “industrial hemp” as defined by Cal. Health and Safety Code, Section 11018.5 or Cal. Food and Agricultural Code Section 81000. (GF) CANNABIS ACCESSORIES - The same meaning as in Cal. Health and Safety Code, Section 11018.2.
(H) CANNABIS INNOVATION ZONE - A park or campus which is one contiguous commercial area of land which has many cannabis related businesses grouped together.

Each individual business would be clearly defined, which has a unique entrance and immovable physical barriers between uniquely licensed premises. (IG) CANNABIS CONCENTRATE - Cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this article. A cannabis concentrate is not considered food, as defined by Cal. Health and Safety Code, Section 109935, or drug, as defined by Cal. Health and Safety Code, Section 109925. (JH) CANNABIS PRODUCT - A product containing cannabis, including, but not limited to, manufactured cannabis, - intended to be sold for use by cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Cal. Health and Safety Code, Section 11362.5 (as the same may be amended from time-to-time) or pursuant to the Adult Use of Cannabis Act. For purposes of this article, “cannabis” does not include industrial hemp as defined by Cal. Food and Agricultural Code, Section 81000, or Cal.

Health and Safety Code, Section 11018.5.
(KI) CANNABIS PRODUCTS - The same meaning as in Cal. Health and Safety Code, Section 11018.1.
(LJ) CANNABIS WASTE - Any material intended for disposal that contains cannabis but is not otherwise considered a hazardous waste. Cannabis waste consisting solely of plant material shall be considered an organic waste as defined in Public Resources Code section 42649.8(d).
(K) CANOPY - The designated area(s) at a licensed premise, except nurseries that will contain mature plants at any point in time.
(1) CANOPY shall be calculated in square feet and measured using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries; and
(2) CANOPY may be non contiguous but each unique area included in the total canopy 3 612
calculation shall be separated by an identifiable boundary which include, but are not limited to: interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots; and
(3) If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total CANOPY calculation. (ML) CAREGIVER or PRIMARY CAREGIVER - The same meaning as that term is defined in Cal. Health and Safety Code, Section 11362.7.
(NM) CHILD RESISTANT - Designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly. (ON) CITY - The City of Oxnard including the area within the territorial city limits of the city and such territory outside of the city over which the city council has jurisdiction or control by virtue of any provision of law.
(PO) COMMERCIAL CANNABIS ACTIVITY - Includes the possession, manufacturemanufacturing, distribution, cultivation, processing, storing, laboratory testing, packaging, labeling or transportation of cannabis and cannabis products as provided for in this division.
(QP) COMMERCIAL CANNABIS BUSINESS - Any business or operation which engages in medicinal or adult-use commercial cannabis activity.
(RQ) COMMERCIAL CANNABIS BUSINESS PERMIT - A regulatory permit required to be issued by the City of Oxnard pursuant to this article to a commercial cannabis business and is required before anyby the City of Oxnard prior to commercial cannabis activity may bebeing conducted in the city. Such permit cannot be issued before a Certificate of Occupancy is granted for the location at which the commercial cannabis business will be located. The initial permit and annual renewal of a commercial cannabis business permit is made expressly contingent upon the business’s ongoing compliance with all of the requirements of this article and any regulations adopted by the city governing the commercial cannabis activity at issue.
(SR) CULTIVATION - Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
(TS) CULTIVATION SITE - A location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (UT) CUSTOMER - A natural person 21 years of age or over, or a natural person 18 years of age or older who possesses a physician’s recommendation or aState issued medical marijuanacannabis identification card.
(V) DAY CARE CENTER - The same meaning as in Cal. Health and Safety Code, Section 1596.76.
(WU) DELIVERY - The commercial transfer of cannabis or cannabis products to a customer. DELIVERY also includes the use by a retailer of any technology platform owned and controlled by the retailer.
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(X) DIRECTOR - The director of the California Department of Consumer Affairs(V) DEPARTMENT OF CANNABIS CONTROL (DCC) - The lead State agency or successor agency responsible for regulating and licensing commercial medicinal and adult use cannabis in California, which is also responsible for licensing retailers, cultivators, distributors, testing laboratories, microbusinesses, and temporary cannabis events. (YW) DISTRIBUTION - The procurement, sale, and transport of cannabis and cannabis products between licensees.
(ZX) DISTRIBUTOR - A personPerson holding a valid commercial cannabis business permit for distribution issued by the City of Oxnard, and, a valid State license for distribution, required by State law to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a license manufacturer, for sale to a licensed retailer.
(AAY) DRIED FLOWER - All dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(BBZ) EDIBLE CANNABIS PRODUCT - Cannabis product that is intended to be used, orally, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Cal. Food and Agricultural Code, Division 15 (commencing with Section 32501). An EDIBLE CANNABIS PRODUCT is not considered food, as defined by Cal. Health and Safety Code, Section 109935, or a drug, as defined by Cal Health and Safety Code, Section 109925. For purposes, “edible cannabis product” includes cannabis products that dissolve or disintegrate in the mouth, but does not include any product otherwise defined as “cannabis concentrate.”
(CCAA) FUND - The Cannabis Control Fund established pursuant to Cal. Bus. and Prof.

Code, Section 26210.
(DDBB) GREENHOUSE - A fully enclosed permanent structure that is clad in transparent material with climate control, such as heating and ventilation capabilities and supplemental artificial lighting, and that uses a combination of natural and supplemental lighting for cultivation.
(CC) INDOOR CULTIVATION - The cultivation of cannabis within a permanent structure using exclusively artificial light.
(EEDD) KIND - Applicable type or designation regarding a particular cannabis variant or cannabis product type, including, but not limited to, strain name or other grower trademark, or growing area designation.
(FFEE) LABELING - Any label or other written, printed, or graphic matter upon a cannabis product, upon its container.
(GGFF) LICENSE - A State license issued by the State and includes both an A-license and an M-license, as well as a testing laboratory license.
(HHGG) LICENSEE - Any person holding a license under this article, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.
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(IIHH) LICENSING AUTHORITY - The City of Oxnard and/or State agency responsible for the issuance, renewal, or reinstatement of the license, or the City of Oxnard and/or State agency authorized to take disciplinary action against the licensee. (JJII) LIMITED-ACCESS AREA - An area in which cannabis is stored or held and is only accessible to a licensee or permittee and authorized personnel. (KKJJ) LIVE PLANTS - Living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(LLKK) LOCAL JURISDICTION - A city, county or city and county. (MMLL) LOCAL EQUITY APPLICANT - Applicant with at least 40% local ownership. To remain a local equity applicant, a minimum of 40% local ownership must be maintained in the aggregate. Ownership shall not fall below 40% at any time and for the entire periodlife of time in which a local equity applicant has athe commercial cannabis business permit issued by the city. If an applicant does not obtain a commercial cannabis business permit based upon the local equity status, then that applicant shall not be deemed a local equity applicant.
(NNMM) LOCAL OWNERSHIP - Ownership interest(s) held by one or more natural persons who are a resident within the city’s corporate boundaries as of the date the application is submitted and who maintain local residency at all times while their ownership interest(s) are used for qualifying as a local equity applicant for one or more commercial cannabis business permits. A minimum of 40% of cannabis ownership (in the aggregate) is required to be composed of residents of the City of Oxnard for the duration of the commercial cannabis business permit issued to the Local Equity Applicant. Factors used to determine local residency shall include (as applicable) but are not limited to the following: ownership or rental of dwelling unit within the city’s corporate boundaries that is the primary residence; California driver’s license with a residential address within the city’s corporate boundaries that is the primary residence; voter registration at a residential address within the city’s corporate boundaries that is the primary residence; residential address within the city’s corporate boundaries used for filing State and federal income tax returns that is the primary residence; and the natural person does not have a homestead exemption in any jurisdiction other than within the city’s corporate boundaries. LOCAL OWNERSHIPLocal ownership is subject to ongoing verification under penalty of perjury.

Failure to maintain a minimum of 40% local ownership is grounds for revocation of the commercial cannabis business permit..
(OONN) LOT - A batch or a specifically identified portion of a batch. (PPOO) M-LICENSE - A State license issued by the State for commercial cannabis activity involving medicinal cannabis.
(QQPP) M-LICENSEE - Any personPerson holding a license by the State for commercial cannabis activity involving medicinal cannabis.
(RRQQ) MANUFACTURE - To compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
(SSRR) MANUFACTURED CANNABIS - Raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or 6 615
oral ingestion or for topical application.
(TTSS) MANUFACTURER - A licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or container. (UUTT) MANUFACTURING SITE - 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 commercial cannabis business permit for manufacturing from the City of Oxnard and, a valid State license as required for manufacturing of cannabis products. (VVUU) MEDICINAL CANNABIS or MEDICINAL CANNABIS PRODUCT - Cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Cal. Health and Safety Code, Section 11362.5, by a medicinal cannabis patient in California who possesses a physician’s recommendation. (VV) MIXED-LIGHT CULTIVATION - The cultivation of cannabis in a greenhouse, glasshouse, conservatory, hothouse, or other similar structure using light deprivation and/or one of the artificial lighting models, excluding hoop structures. (WW) NONVOLATILE SOLVENT - Any solvent used in the extraction process that is not a volatile solvent. For purposes of this article, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. (XX) NURSERY - A licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically, for the propagation and cultivation of cannabis. (YY) OPERATION - Any act for which a license is required under the provisions of this article, or any commercial transfer of cannabis or cannabis products. (ZZ(ZZ) OUTDOOR CULTIVATION - The cultivation of cannabis, outside of a structure, without the use of artificial lighting in the canopy area at any point in time. Cultivation within a hoop structure is considered outdoor cultivation. (AAA) OWNER - Any of the following:
(1) A personAn individual with an aggregate ownership interest of 20% or more in the person applying for a license,Person with the commercial cannabis business permit or a licensee, unless the interest is solely a security, lien, or encumbrance. (2) The manager of a nonprofit or other entity.
(3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the business applying for a license, or who has a financial interest in the business other than a fixed lease of real property.
(AAABBB) PACKAGE - Any container or receptacle used for holding cannabis or cannabis 7 616
products.
(BBBCCC) PATIENT or QUALIFIED PATIENT - The same definition as Cal. Health and Safety Code, Sections 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of Cal. Health and Safety Code, Section 11362.5.10. (CCCDDD) PERSON - Includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
(DDDEEE) PERSON WITH AN IDENTIFICATION CARD - The meaning given that term by Cal. Health and Safety Code, Section 11362.7.
(EEE) PHYSICIAN’S RECOMMENDATION - A recommendation by a physician that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Cal. Health and Safety Code, Section 11362.5. (FFF) PREMISES - The designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee unless the operator is granted a M-license and an A-license for the same type of activity and such operation is lawful under stateState and local laws, rules and regulations. (GGG) PROCESSING - A cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and nonmanufacturednon manufactured cannabis products.
(HHH) PURCHASER - The customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
(III) RETAILER - A commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including by an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator who holds both a valid commercial cannabis business permit from the City of Oxnard authorizing the operation of a retailer, and a valid State license as required by State law to operate as a retailer. (JJJ) SELL, SALE, and TO SELL - Include any transaction whereby, for any consideration, title to cannabis or cannabis products are transferred from one personPerson to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.
(KKK) STATE LICENSE - A permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State of California legislation regarding the same to engage in commercial cannabis activity. (LLL) TESTING LABORATORY - A laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons 8 617
involved in commercial cannabis activity in the State.
(2) Licensed by the State of California.
(MMM) TOPICAL CANNABIS - A product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Cal. Health and Safety Code, Section 109925.
(NNN) TRANSPORT - The transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA which may be amended or repealed by any subsequent State of California legislation regarding the same.
(OOO) UNIQUE IDENTIFIER - An alphanumeric code or designation used for reference to a specific plant on a licensed premises and any cannabis or cannabis product derived or manufactured from that plant.
(PPP) VOLATILE SOLVENT - Any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.

Examples of VOLATILE SOLVENTS include, but are not limited to, butane, hexane, and propane.
(QQQ) YOUTH CENTER - Any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades where ten or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or similar amusement park facilities. It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on city, county or stateState parks. This definition shall not include any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor's office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

SEC. 11-455. CANNABIS EMPLOYEE PERMIT REQUIRED.

A request for a cannabis employee permit will only be initiated after securing a favorable recommendation for a commercial cannabis business permit. If an owner has employees at the time of submittal of the commercial cannabis business permit application, a request for a cannabis employee permit can be initiated in advance of issuance of a discretionary land use permit.
(A) Any person who is an employee or who otherwise works within a commercial cannabis business must be legally authorized to do so under applicable State law. (B) Any person who is an employee or who otherwise works within, manages or is an Owner of a commercial cannabis business must obtain a commercial cannabis employee work permit from the city prior to performing any work at any commercial cannabis business.
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(C) Applications for a commercial cannabis employee work permit shall be developed, made available, and processed by the city manager or his or her designee(s), and shall include, but not be limited to, the following information:
(1) Name, address, and phone number of the applicant;
(2) Age and verification of applicant. A copy of a birth certificate, driver’s license, government issued identification card, passport or other proof that the applicant is at least 21 years of age must be submitted with the application; (3) Name, address of the commercial cannabis business where the person will be employed, and the name of the primary manager of that business; (4) A list of any crimes enumerated in Cal. Bus. and Prof. Code, Section 26057(b)(4) for which the applicant or employee has been convicted;
(5) Name, address, and contact person for any previous employers from which the applicant was fired, resigned, or asked to leave and the reasons for such dismissal or firing; (6) The application shall be accompanied by fingerprints and a recent photograph of the applicant in a form and manner as required by the city manager or his or her designee(s);
(76) A signed statement under penalty of perjury that the information provided is true and correct;
(87) If applicable, verification that the applicant is a qualified patient or primary caregiver;
(98) A fee paid in an amount set by resolution of the city council in an amount necessary to cover the costs of administering the employee work permit programs. The fee is non-refundable and shall not be returned in the event the work permit is denied or revoked.
(D) (1) The applicable city department head or his or her designee(s) shall review the application for completeness, shall conduct a background check to determine whether the applicant was convicted of a crime or left a previous employer for reasons that show the applicant:
(a) Has been convicted of a crime involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in Cal. Penal Code, Sections 186.11, 470, 484, and 504a; or
(b) Has committed a felony or misdemeanor involving fraud, deceit, embezzlement; or (c) Was convicted of a violent felony, a crime of moral turpitude; or (d) The illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, except for cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.
(2) Discovery of these facts showing that the applicant is dishonest or has been convicted of the requisite crimes are grounds for denial of the permit. Where the applicant’s sentence (including any term of probation, incarceration, or supervised release) for possession of, 10 619
possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is completed, such underlying conviction shall not be the sole ground for denial of a commercial cannabis work permit. Furthermore, an applicant shall not be denied a permit if the denial is based solely on any of the following: (i) a conviction for any crime listed in subsection (D)(1)(d) above for which the applicant has obtained a certificate of rehabilitation pursuant to Cal. Penal Code, Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3, or (ii) a conviction that was subsequently dismissed pursuant to Cal.

Penal Code, Sections 1203.4, 1203.4a, or 1203.41 or any other provision of State law allowing for dismissal of a conviction.
(E) The applicable department head or his or her designee(s) shall issue the commercial cannabis employee permit or a written denial to the applicant within 30 days of the date the application was deemed complete. In the event the cannabis employee work permit cannot be issued within this time period, then the city manager or his or her designee(s) may issue a temporary work permit for an employee upon completing a preliminary background check and if the business can demonstrate to the city manager or his or her designee(s) that the employee is necessary for the operation of the business. The temporary permit may be immediately revoked by the city manager or his or her designee(s) upon determination that the applicant has failed the background check or upon the issuance of the permanent work permit.
(F) An employee work permit shall be valid for a 1236-month period and must be renewed on an annual basisevery three years. Renewal applications shall contain all the information required in subsection (C) above including the payment of a renewal application fee in an amount to be set by resolution of the city council. (G) In the event a person changes employment from one commercial cannabis business in the city to another, the work permit holder shall notify the applicable department head or his or her designee(s) in writing of the change within ten days, or the work permit shall be suspended or revoked, and such person shall not be permitted to work at any commercial cannabis business in the city.
(H) The city may immediately revoke the commercial cannabis employee permit should the permit holder be convicted of a crime listed in subsection (D) above or if facts become known to the city that the permit holder has engaged in activities showing that he or she has been convicted of a crime involving dishonesty.
(I) The city manager or his or her designee(s) is hereby authorized to promulgate all regulations necessary to implement the work permit process and requirements. (J) The applicant may appeal the denial or revocation of a commercial cannabis employee permit by filing a notice of appeal with the city clerk within ten days of the date the applicant received the notice of denial. The city manager or his or her designee shall hear such appeal and his or her decision shall be final and not subject to further appeals. (K) The applicable city department head or his or her designee(s) shall issue a permit in the form of a personal identification card that can be worn in a prominent and visible location. The identification card shall be maintained in good and readable condition at all times.

SEC. 11-456. MAXIMUM NUMBER AND TYPE OF AUTHORIZED COMMERCIAL CANNABIS BUSINESSES PERMITTED.
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(A) The number of each type of commercial cannabis business that shall be permitted to operate in the city at any one time shall be as follows:
(1) Cannabis manufacturing - Maximum of eight (8) at any one time, with up to three permits issued to local equity applicants.
(2) Cannabis testing lab - Maximum of one (1) at any one time. (3) Cannabis distributor - Maximum of three (3) at any one time, with up to three permits issued to local equity applicants.
(4) Cannabis retail - Maximum of sixteen (16) at any one time, with up to three permits issued to local equity applicants.
(5) Cannabis cultivation - Maximum of five (5) at any one time. (B) This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the city under each category. Nothing in this article creates a mandate that the city council must issue any or all of the commercial cannabis business permits.
(C) Each year following the city manager’s initial award of commercial cannabis business permits, if any, or at any time at the city council’s discretion, the city council may reassess the number of commercial cannabis business permits which are authorized for issuance.

The city council at its discretion, may determine that the number of commercial cannabis business permits should remain the same, or be expanded.

SEC. 11-457. COMMERCIAL CANNABIS BUSINESS PERMIT; APPLICATION PROCEDURE. (A) The city manager or his or her designee shall adopt the procedures to govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis business permit(s), which shall include or require the city manager to provide detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to each set of review criteria (“review criteria”). The city manager or his or her designee(s) shall be authorized to prepare the necessary forms, adopt any necessary rules to the application, regulations and processes, solicit applications, and conduct initial evaluations of the applicants. (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.
(C) After the initial review, ranking, and scoring under the review criteria, the city manager or his or her designee(s) will make a final determination in accordance with this section and shall either deny or approve the final candidates and shall select the top candidates in each category of the commercial cannabis businesses. Notwithstanding anything in this article to the contrary, the city manager’s decision as to the selection of the prevailing candidates shall be final and shall not be subject to appeal. (D) Official issuance of the commercial cannabis business permit(s) is conditioned upon the prevailing candidate(s) obtaining all required land use approvals and completing to the city’s satisfaction all conditions of approval required for the site to be issued a certificate of 12 621
occupancy and commercial cannabis business business permit.. Following the city manager’s selection of the personPerson who shall be issued a commercial cannabis business permit, the prevailing candidate(s) shall apply to the city’s community development department to obtain required land use approvals or entitlements for thepursuant to Section 16-163. A special use permit (SUP) or a development design review (DDR) permit shall be required prior to the issuance of building permits. The SUP and DDR shall expire one year after issuance if the applicant has not diligently pursued obtaining the necessary building permits and complying with the conditions of approval needed for the business to open at the approved location. The permittee’s location and use approvals shall include compliance with all applicable provisions of the California Environmental Quality Act. The community development director shall formally issue the commercial cannabis business permit(s) once the community development director or his or her designee(s) affirms that all of the required land use approvals have been obtained and all required conditions of approval have been complied with.
(E) Issuance of a commercial cannabis business permit does not create a land use entitlement. The commercial cannabis business permit shall only be for a term of 12 months and shall expire at the end of the 12- month period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a commercial cannabis business permit, unless all of the State and local laws and regulations, including but not limited to the requirements of this article and of the permit, have been complied with.
(F) Notwithstanding anything in this article to the contrary, the city manager reserves the right to reject any or all applications if the city manager 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 commercial cannabis business 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 article. (G) If an application is denied, a new application may not be filed for one year from the date of the denial.
(H) Each personPerson granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the city council, to cover the costs of administering the commercial cannabis business permit program created in this article.
(I) Preservation of rights. The city reserves the right to reject any or all applications. Prior to permit issuance by the city council, the city may also modify, postpone, or cancel any request for applications, or the entire program under this article, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under State law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this article, may be cancelledcanceled 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 possible rejection for failure to comply with other requirements in this article, an applicant also risks being rejected for any of the following reasons:
(1) Proposal received after designated time and date.
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(2) Proposal not containing the required elements, exhibits, nor organized in the required format.
(3) Proposal considered not fully responsive to the request for permit application.

SEC. 11-458. PERSONS PROHIBITED FROM HOLDING A LICENSE OR EMPLOYEE WORK PERMIT.

SEC. 11-459. EXPIRATION OF COMMERCIAL CANNABIS BUSINESS PERMITS.

SEC. 11-460. REVOCATION OF PERMITS.

Commercial cannabis business permits may be revoked for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to any policy, procedure or regulation in this article.

SEC. 11-461. RENEWAL APPLICATIONSOF COMMERCIAL CANNABIS BUSINESS PERMITS. (A) An application for renewal of a commercial cannabis business permit shall be filed at least 60 calendar days prior to the expiration date of the current permit. (B) The renewal application shall contain all thethe current owner and employee information, copy of the owner’s State license, the city business tax certificate, and such other information as required for new applicationsby the city. (C) The applicant shall pay a regulatory compliance fee in an amount to be set by the city council to cover the costs of processing the renewal permit application, together with any 14 623
costsresolution. The regulatory compliance fee shall not exceed the reasonable cost incurred by the city to administer the program created underby this article. The applicant shall pay this annual fee, at the time of renewal, on a yearly basis. (D) An application for renewal of a commercial cannabis business permit may be rejected if any of the following exists:
(1) The application is filed less than 60 days before its expiration. (2) The commercial cannabis business permit is suspended or revoked at the time of the application.
(3) The commercial cannabis business has not been in regular and continuous operation in the four months prior to the renewal application. (4) The commercial cannabis business has failed to conform to the requirements of this article, or of any regulations adopted pursuant to this article. (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 article, of the city ordinance, or of the State rules and regulations, and the city or State has determined that the violation is grounds for termination or revocation of the commercial cannabis business permit. (E) The city manager or his or her designee(s) is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the city manager or his or her designee(s) is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with State or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the city manager or his or her designee(s) shall be handled pursuant to sectionsSections 11-464 to 11-465.
(F) If a renewal application is rejected, a personPerson may file a new application pursuant to this article no sooner than one year from the date of the rejection.

SEC. 11-462. EFFECT OF STATE LICENSE SUSPENSION, REVOCATION, OR TERMINATION.

Suspension of a license issued by the State, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the city, until the State, or its respective department or division, reinstates or reissues the State license. Should the State, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of Oxnard.

SEC. 11-463. APPEALS.

Unless specifically provided elsewhere to the contrary, whenever an appeal is specifically provided for in this article, the appeal shall be conducted as prescribed in this article. 15 624
SEC. 11-464. WRITTEN REQUEST FOR APPEAL OF DECISION OF CITY MANAGER OR PLANNING COMMISSION.
(A) Within ten calendar days after the date of a decision of the city manager or his or her designee(s) to revoke, or suspend, 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) Within ten eighteen calendar days after the date of a decision of the planning commission to approve a special use permit pursuant to this article, 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.
(C) At the time of filing, the appellant shall pay the designated appeal fee in an amount, established by resolution of the city council.
(D) Appeals shall be conducted in accordance with Section 16-465.

SEC. 11-465. APPEAL HEARING.
(A) Upon receipt of the written appeal pursuant to sectionSection 11-464, 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 the appeal, but in no event later than 90 days from the date of such filing. The city shall notify the appellant of the time and location at least ten 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. The decision of the city council shall be final.

SEC. 11-466. APPEAL FROMOF DECISION OF COMMUNITY DEVELOPMENT DIRECTOR. (A) Within ten calendar days after the date of a decision of the community developer director pursuant to this article, 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. At the time of filing, the appellant shall pay the designated appeal fee, established by resolution of the city council.
(B) Upon receipt of the written appeal pursuant to subsection (A), the city clerk shall set the matter for a hearing before the planning commission. The planning commission shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the city. The appeal shall be held within a reasonable time after filing the appeal, but in no event later than 90 days from the date of such filing. The city shall notify the appellant of the time and location at least ten days prior to the date of the hearing. 16 625
(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. The decision of the planning commission shall be final.

SEC. 11-467. CHANGE IN LOCATION; UPDATED REGISTRATION FORM.

Failure to comply with this provision is grounds for permit revocation. (D) (1) A permittee may change the form of business entity without applying to the city manager or his or her designee for a transfer of permit, provided that either:
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(a) Thethe membership of the new business entity is substantially similar to original permit holder business entity (at least 5160% of the membership is identical), or (b) If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA provided that the board of directors (or in the case of an unincorporated association, the individual(s) listed on the city permit application) of the original permittee entity are the same as the new business entity.
(2) Although a transfer is not required in these two circumstances, the The permit holder is required toshall notify the city manager in writing of the change within ten days of the change. Failure to comply with this provision is grounds for permit revocation. (E) No commercial cannabis business permit may be transferred when the city manager or his or her designee has notified the permittee that the permit has been or may be suspended or revoked.
(F) Any attempt to transfer a commercial 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.
(G) Notwithstanding any language in this section to the contrary, no transfer of a local equity ownership interest in a business that obtained its commercial cannabis business permit as a local equity applicant shall be allowed if such proposed transfer would reduce the local equity interest in the commercial cannabis business to a level below that required for a local equity applicant.

SEC. 11-469. CITY BUSINESS TAX CERTIFICATE.

Prior to commencing operations, a commercial cannabis business shall obtain a City of Oxnard business tax certificate, pursuant to article I.

SEC. 11-470. BUILDING PERMITS AND INSPECTION.

SEC. 11-471. CERTIFICATION FROM THE COMMUNITY DEVELOPMENT DIRECTOR.

Prior to submittal of a commercial cannabis business permit application, a certification, the applicant shall obtain a zoning clearance (ZC) and zoning verification letter (ZVL) from the community development director or his or her designee(s) certifying that the business is located on a site that meets all of the requirements of chapter 16 and this article shall be obtained. A fee shall be established by city council resolution for submittal and processing 18 627
of this certification.

SEC. 11-472. RIGHT TO OCCUPY AND TO USE PROPERTY.
(A) As a condition precedent to the city’s issuance of a commercial cannabis business permit pursuant to this article, any personPerson intending to open and to operate a commercial 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 the property owner, 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 article and consents to the operation of the commercial cannabis business on the owner’s property.
(B) The lease, sublease or other agreement to occupy the property must be at fair market value and not have any terms or conditions for the permittee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the city. In addition, all leases, subleases, or other agreements must be based on a monthly rate.

SEC. 11-473. LOCATION AND DESIGN OF CANNABIS BUSINESSES.

Manufacturing, testing, and/or distribution facilities may also be located in the following specific plan areas subject to relevant specific plan requirements: Northeast Community Specific Plan, Sakioka Farms, Camino Real Business Park, McInnes Ranch Business Park Specific Plan, and Northfield Seagate Business Park Specific Plan. (B) Cultivation is conceptually permitted on property zoned limited manufacturing (ML), light manufacturing (M1), heavy industrial (M2), and business and research park (BRP). Cultivation may also be located in the following areas subject to relevant specific plan requirements:

Sakioka Farms Business Park Specific Plan; McInnes Ranch Business Park Specific Plan; Arcturus Ave.; Northfield & Seagate Business Park Specific Plan; Channel Island Business Center; and Statham Business Park.
(BC) All cannabis retail dispensary businesses have been conceptually identified on land use maps, with actual siting subject to land use siting criteria and buffer requirements as stipulated in this subsection (BC). Retailers are conceptually permitted in property zoned neighborhood shopping center (C-l), neighborhood shopping center planned development (C-l-PD), general commercial (C-2), general commercial planned development (C-2-PD), coastal neighborhood commercial (CNC), and commercial planned development (CPD), 19 628
business park, retail commercial, and commercial manufacturing zones within the Rose Santa Clara Corridor Specific Plan. Retail dispensaries may also be located in the following specific plan areas subject to relevant specific plan requirements: RiverPark - commercial office, commercial convention, and commercial regional, Sakioka Farms, and Camino Real Business Park.
(CD) Compliance with any specific plan requirements.
(DE) The property on which any commercial cannabis business is located must also meet all of the following distance requirements:
(1) It shall be no closer than 600 feet of any of the following:
(a) Any school providing instruction in kindergarten or any grades 1 through 12, whether public, private, or charter, including pre-school, transitional kindergarten, and K-12.
(b) A commercial daycare center licensed by the city or county that is in existence at the time the license is issued, unless the State licensing authority or the city specifies a different radius.
(c) A youth center that is in existence at the time the license is issued, unless the State licensing authority or the city specifies a different radius. (2) The distance specified in this subsection shall be the horizontal distance measured in a straight line from the property line of the identified use to the closest property line of the lot on which the cannabis use is located without regard to intervening structures. (EF) Each proposed commercial cannabis business use shall:
(1) Conform with the city’s general plan, any applicable specific plans, master plans, and design requirements.
(2) Comply with all applicable zoning, and specific plan requirements, and related development standards.
(3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.
(4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development. (5) Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate.
(6) Be provided with adequate electricity, sewerage, disposal, water, fire protection (sprinkler and alarm; retrofit when determined necessary by the fire marshal) and storm drainage facilities for the intended purpose.

SEC. 11-474. LIMITATIONS ON CITY’S LIABILITY.

To the fullest extent permitted by law, the City of Oxnard shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this article or otherwise approving the operation of any commercial cannabis business. 20 629
As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial 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 Oxnard 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 commercial cannabis business permit, the city’s decision to approve the operation of the commercial cannabis business or activity, the process used by the city in making its decision, or the alleged violation of any federal, State or local laws by the commercial cannabis business or any of its officers, employees or agents.
(B) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city manager. (C) Reimburse the City of Oxnard for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of Oxnard may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s commercial cannabis business permit, or related to the city’s approval of a commercial cannabis activity. The City of Oxnard 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.

SEC. 11-475. [RESERVED] CANNABIS DELIVERY FROM OUTSIDE THE CITY. (A) Cannabis delivery from outside the city is only allowed from state licensed operators who meets the following requirements:
(1) First obtain an Oxnard Business Tax Certificate;
(2) Provide the City with a copy of the State license issued by the Department of Cannabis Control that authorizes such deliveries; and
(3) During delivery into the city, the delivery driver from the state licensed operator displays the following information in each delivery vehicle at all times: (a) A copy of a City of Oxnard Business Tax Certificate.
(b) A copy of a State license issued by the Department of Cannabis Control. (B) Cannabis deliveries from within the city are only allowed from city licensed commercial cannabis retailers.

SEC. 11-476. RECORDS AND RECORDKEEPING.
(A) Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, 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 commercial cannabis business permit issued pursuant to this article), or at any time upon reasonable request of the city, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous 12-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include 21 630
gross sales for each month, and all applicable taxes paid or due to be paid. On an annual basis, each owner and operator shall submit to the city a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the city manager or his or her designee(s).
(B) Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the city manager or his or her designee(s) upon a reasonable request.
(C) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth MAUCRSA.
(D) Each commercial cannabis business shall allow the city to have access to the businesses books, records, accounts, together with any other data or documents relevant to its permitted commercial 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 24 hours after receipt of the city’s request, unless otherwise stipulated by the city. The city may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware.

SEC. 11-477. OPERATIONAL STANDARDS.
(A) A permitted commercial 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 commercial cannabis business. Except as may otherwise be determined by the city manager or his or her designee(s), these security measures shall include, but shall not be limited to, all of the following and are considered in addition to the best practices identified in the guidelines for issuance of a cannabis business permit and/or conditions imposed as part of the discretionary land use permit approval:
(1) Alarm system (perimeter, fire, and panic buttons).
(2) Remote monitoring of alarm systems by licensed security professionals and first responders (Knox box, etc.).
(3) Perimeter lighting systems (including motion sensors) for after-hours security. (4) Perimeter security and lighting as approved by the police chief, community development department or his or her designee.
(5) Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business.
(6) Establishing limited access areas accessible only to authorized commercial cannabis business personnel.
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(7) Plan for cash handling as relevant to manufacturing, testing, and distribution operations.
(8) Except for live growing plants which are being cultivated at a cultivation facility, all cannabis and cannabis products shall be stored in a secured and locked vault or vault equivalent. All safes and vaults shall be compliant with Underwriter Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.
(9) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weatherproof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the city manager or his or her designee(s), and that it is compatible with the city’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the city manager or his or her designee(s).

Video recordings shall be maintained for a minimum of 90 days and shall be made available to the city manager or his or her designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business, and shall be capable of enlargement via projection or other means. Internet protocol address information shall be provided to the Oxnard police department by the commercial cannabis business, to facilitate remote monitoring of security cameras by the department or its designee.
(10) Sensors shall be installed to detect entry and exit from all secure areas, and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.
(11) Panic buttons shall be installed in all commercial cannabis businesses with direct notification to Oxnard police department dispatch, and shall be configured to immediately alert dispatch for the Oxnard police department.
(12) Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services.
(13) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building. (14) Security personnel shall monitor premises in accordance with a security plan as authorized by the city manager or his or her designee(s), and must have a verified response security patrol when closed. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager or his or her designee(s), with such approval not to be unreasonably withheld. Firearms may be carried by security personnel while they are on duty if authorized by the police chief.
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(15) Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. (16) Entrance areas are to be locked at all times and under the control of a designated responsible party that is either: (a) an employee of the commercial cannabis business; or (b) a licensed security professional.
(17) Each commercial cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails or both product and cash, where applicable.
(18) Each commercial cannabis business shall demonstrate to the police chief, city manager or their designees compliance with the State’s track and trace system for cannabis and cannabis products, as soon as it is operational.
(19) Each commercial cannabis business shall have state of the art network security protocols in place to protect computer information and all digital data. (20) Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises. (B) Each commercial cannabis business shall identify a designated security representative/liaison to the City of Oxnard, who shall be reasonably available to meet with the city manager or his or her designee(s) regarding any security related measures and/or operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the city manager or his or her designee upon request that meets the following requirements:
(1) Confirms that a designated manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.
(2) Identifies all managers of the commercial cannabis business and their contact phone numbers.
(3) Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.
(4) Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.
(5) Identify a sufficient number of licensed, interior and exterior security personnel who will monitor individuals inside and outside the commercial cannabis business, the parking lot, and any adjacent property under the business’s control. (6) Confirm that the licensed security personnel shall regularly monitor the parking lot and any adjacent property to ensure that these area are: (a) free of individuals loitering or causing a disturbance; (b) are cleared of employees and their vehicles one-half hour after closing.
(C) As part of the application and permitting process, each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis 24 633
products, and any currency.
(D) The commercial cannabis business shall cooperate with the city whenever the city manager or his or her designee(s) makes a request, without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this article. Prevention fire inspectors shall be allowed access to audit buildings for fire life safety concerns on a yearly basis or as determined necessary per the fire marshal. (E) A commercial cannabis business shall notify the city manager or his or her designee(s) within 24 hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city manager or his or her designee(s). (2) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business. (3) The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the commercial cannabis business. (4) Any other breach of security.
(F) Compliance with the foregoing requirements shall be verified by the city manager or his or her designee prior to commencing business operations. The city manager or his or her designee may supplement these security requirements once operations begin, subject to review by the city manager if requested by the business owner.

SEC. 11-478. RESTRICTION ON ALCOHOL AND TOBACCO SALES.
(A) No personPerson shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the commercial cannabis business. (B) No personPerson shall cause or permit the sale or tobacco products on or about the premises of the commercial cannabis business.

SEC. 11-479. FEES AND CHARGES.
(A) No personPerson may commence or continue any commercial cannabis activity in the city without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by resolution of the city council which may be amended from time to time.
(B) All commercial cannabis businesses authorized to operate under this article shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, State and local law. Each commercial cannabis business shall cooperate with the city with respect to any reasonable request to audit the commercial cannabis business’s 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.
(C) Prior to operating in the city and as a condition of issuance of a regulatory permit, the operator of each cannabis facility shall enter into an operational agreement with the 25 634
city setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this article, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.

SEC. 11-480. MISCELLANEOUS OPERATING REQUIREMENTS.
(A) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the city and/or as determined within the discretionary land use permit.
(B) Restriction on consumption - Cannabis shall not be consumed by any employee on the premises of any commercial cannabis business.
(C) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (D) Reporting and tracking of product and of gross sales - Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the city. The commercial cannabis business shall ensure that such information is compatible with the city’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the city manager or his or her designee(s) prior to being used by the permittee.
(E) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations.
(F) Emergency contact and emergency response plan - Each commercial cannabis business shall provide the city manager or his or her designee(s) with the name, telephone number (both landline and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. Each commercial cannabis business must have a fire evacuation plans, and plan to address robberies and other emergencies. Said plan shall be reviewed and approved by the fire and police chiefs or designee.
(G) Signage and notices -
(1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of the City of Oxnard regulations, including, but not limited to, seeking the issuance of a city sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window.
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(3) Each entrance to a commercial 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 commercial 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 commercial 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 commercial cannabis business or elsewhere including, but not limited to, the public right-of-way.
(5) (5) Signage shall notmay be directlyinternally illuminated, internally or externally illuminated with directed and shielded downward facing lighting consistent with city regulations and the conditions of approval. All signs shall conform with Section 16-595.

Signage shall not feature exposed elements.
(6)No banners (with the exception of permitted Grand-Opening Banners), flags, billboards or other prohibited signs may be used at any time. (H) Minors -
(1) Persons under the age of 21 years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this article for any personPerson to employ any person at a commercial cannabis business who is not at least 21 years of age. (2) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of 21 years of age is permitted to enter upon the premises of the commercial cannabis business, unless otherwise authorized by state law.
(I) Odor control - Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial 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 commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the community development director or his or 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 commercial cannabis businesses interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. (J) Display of permit and city business tax certificate - The original copy of the commercial cannabis business permit issued by the city pursuant to this article and the city issued 27 636
business licensetax certificate shall be posted inside the commercial cannabis business in a location readily-visible to the public.
(K) Background check - Pursuant to Cal. 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, supervisor, employee, contract employee or who otherwise works in a commercial cannabis business must submit fingerprints and other information deemed necessary by the police chief or his or her designee(s) for a background check by the City of Oxnard police department. Pursuant to Cal. 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 the record, no personPerson shall be issued a permit to operate a commercial cannabis business or a related work permit unless they have first cleared the background check, as determined by the police chief or his or her designee(s), as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City of Oxnard to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted.
(L) Loitering - The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within 50 feet of the premises.

SEC. 11-481. OTHER OPERATIONAL REQUIREMENTS.

SEC. 11-482. OPERATING REQUIREMENTS FOR TESTING LABSLABORATORIES. (A) Testing labs laboratories shall be required to conduct all testing in a manner pursuant to Cal. Bus. and Prof. Code, Section 26100 and shall be subject to State and local law. Each testing laboratory shall be subject to additional regulations as determined from time to time as more regulations are developed under this article and any subsequent State of California legislation regarding the same.
(B) Testing laboratories shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.
(C) All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Bureau Department of Cannabis Control. (D) Testing laboratories shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the BureauDepartment of 28 637
Cannabis Control unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the Bureau of Cannabis Control.
(E) Each operator shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing required by State law and that the testing laboratory employee transports the sample to the testing laboratory.
(F) Except as provided by State law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with State law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol.
(G) A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A testing laboratory shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received.
(H) Approval of testing laboratories shall be through approval of a development design review (DDR) permit to be issued by the community development director of the City of Oxnard. The appeal of the approval or denial of such permit shall be to the planning commission pursuant to sectionSection 11-466.

SEC. 11-483. OPERATING REQUIREMENTS FOR DISTRIBUTORS.
(A) A distributor shall not store non-cannabis goods or non-cannabis accessories that are to be sold to another party on any licensed premises. Additionally, a distributor shall not distribute non-cannabis goods or non-cannabis accessories at a licensed premises. For the purposes of this section, non-cannabis goods are any goods that do not meet the definition of cannabis goods as defined in Cal. Code of Regulations, Title 16, Section 5000. (B) After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing. (C) A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor’s premises. (D) The distributor shall ensure that the batch size from which the sample is taken meets the requirements of State law, specifically the testing provisions within the California Code of Regulations.
(E) A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded and the recording kept available to State and local authorities for a 29 638
minimum of 180 days, pursuant to Cal. Code of Regulations, Title 16, Section 5305. (F) A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing laboratory as being in compliance with state health and safety requirements pursuant to Cal. Code of Regulations, Sections 5705, 5710 and 5714 of Title 16.
(G) Approving of distributor shall be through the approval of a development design review (DDR) permit to be issued by the community development director of the City of Oxnard. The appeal of the approval or denial of such permit shall be to the planning commission pursuant to sectionSection 11-466.

SEC. 11-484. OPERATING REQUIREMENTS FOR CANNABIS MANUFACTURING: EDIBLES AND OTHER CANNABIS PRODUCTS; SALE OR DISTRIBUTION OF EDIBLE AND OTHER CANNABIS PRODUCTS.
(A) Cannabis manufacturing facilities requiring a type-6, type-7, type S, or any subsequent created manufacturing State license (using non-volatile and volatile solvents) as defined in MAUCRSA, may be permitted to operate within those zone districts as defined in the City of Oxnard code.
(B) Any compressed gases used in the manufacturing process shall not be stored on any property within the City of Oxnard in containers that exceeds the amount which is approved by the Oxnard fire department and authorized by the regulatory permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of compressed gas tanks allowed on the property at any one time, as determined by the Oxnard fire department.
(C) Cannabis manufacturing facilities may use the hydrocarbons N-butane, isobutane, ethanol, propane, or heptane or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by the community development department. These solvents must be of at least 99% purity and any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present.
(D) If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use. The CO2 must be of at least 99% purity.
(E) Closed loop systems for compressed gas extraction systems must be used and must be commercially manufactured and bear a permanently affixed and visible serial number. (F) Certification from an engineer licensed by the State of California, or from a State certified professional engineer or state certified industrial hygienist from another state, must be provided to the community development department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
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(1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM). (G) The certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified. (H) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Oxnard fire department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes.
(I) Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.
(J) Cannabis manufacturing facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.
(K) Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.
(L) Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely. (M) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested. (N) Approval of manufacturing facilities shall be through approval of a development design review (DDR) permit to be issued by the community development director of the City of Oxnard. The appeal of the approval or denial of such permit shall be to the planning commission pursuant to sectionSection 11-466.

SEC. 11-485. OPERATING REQUIREMENTS FOR STORE FRONT/RETAIL FACILITIES. (A) No more than the number of cannabis retailers authorized by sectionSection 11-456 shall operate within the City of Oxnard at any one time. (B) Approval of retail dispensaries shall be through approval of a special use permit to be issued by the planning commission pursuant to Section 16-531. The appeal of the approval or denial of such special use permit shall be to the city council pursuant to sections 11-464 and 11-465.
(C) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of 18 years. If the potential customer is 18 to 20 31 640
years old, retailer shall confirm the customer’s possession of a valid doctor’s recommendation and state- issued medical marijuanacannabis card. Persons 18 to 20 years old who are unable to produce either form of medicalthe necessary documentation cannot purchase cannabis legally and are to be denied admittance to the retail facility. For adult-use purchases, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.
(D) Entrances into the retailer shall be locked at all times with entry strictly controlled. A “buzz-in” electronic/mechanical entry system shall be utilized to limit access to and entry to the retail area to separate it from the reception/lobby area. Individuals must show their government-issued identification, and, in the case of or a medical cannabis facilities, their physician’s recommendation, or a cannabis card issued pursuant to Cal. Health and Safety Code, Section 11362.71 in order to gain access into the retailer. The government-issued identification and, if applicable, doctor’s recommendation or cannabis card must also be shown at the point of sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.
(E) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities.

Security personnel may be allowed to carry firearms if authorized by the police chief. (F) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer.

Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.
(G) All restroom facilities shall remain locked and under the control of management. (H) Retailers authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this subsection.
(1) The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises. (2) Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle. (3) No cannabis shall be sold and/or delivered by any means or method to any person within a motor vehicle.
(4) All cannabis goods sold by a retailer shall be contained in child-resistant packaging. (5) Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.
(6) A retail licensee who is engaged in retail sale shall hire or contract for security personnel who are at least 21 years of age to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Cal.

Bus. and Prof. Code, Chapters 11.4 and 11.5 of Division 3. 32 641
(I) Access to retailer premises -
(1) Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least 21 years of age.
(2) Notwithstanding subsection (I)(1) above, individuals who are at least 18 years of age and in possession of a valid physician’s recommendation or state- issued medical marijuanacannabis card shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation.
(J) Authorized sales - A retailer shall only sell adult-use cannabis and adult-use cannabis products to individuals who are at least 21 years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, but not yet 21, if those individuals are in possession of a valid physician’s recommendationstate issued cannabis card. Medicinal cannabis sales to individuals 21 years of age and older are unrestricted.
(K) Limited access areas - A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the police chief or the development services director upon request. (L) Operating hours of the store front retailer license shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week or a reduced duration as stipulated through the discretionary land use permit.
(M) Parking requirements shall be in accordance with chapter 16, article X of the Oxnard city code - 1 parking space per 250 square feet or as stipulated in a city traffic engineer approved parking study via a request for administrative parking relief pursuant to Section 16-651. Commercial cannabis retail businesses proposed to be located within the Downtown Specific Plan area may pay a downtown parking management in-lieu fee to meet off-street parking requirements.
(N) Store front/retailRetail security requirements. All security measures required by section 11-477 (operational standards) are directly applicable to and binding on all commercial cannabis businesses, including all retailers.

SEC. 11-486. OPERATING REQUIREMENTS FOR RETAILERS WITH DELIVERY SERVICE. (A) Retailers located within the city that provide delivery are required to verify the age and the necessary documentation of each medical customer to ensure the customer is not under the age of 18 years, and to verify that the potential customer has a valid doctor’s recommendation. Doctor recommendations are not to be obtained or provided at the retail locationstate issued cannabis card. The age verification requirement applies to both the customer and any person accepting delivery on behalf of the customer. If the latter, the individual must be at least 21 years of age.
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(B) Operating hours of the non-store front retailer shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week or a reduced duration as stipulated through the discretionary land use permit.
(C) The non-store front retailer shall only sell cannabis or cannabis products to a natural person 21 years of age or older, or a natural person 18 years of age or older who possesses a physician’s recommendation for cannabis medical use only, or a cannabis card issued pursuant to Cal. Health and Safety Code Section 11362.71. (D) The non-store front retailer may only have on-site that quantity of cannabis and cannabis products reasonably anticipated to meet the weekly demand for which they may need to be readily available for sale.

SEC. 11-487. NON-STORE FRONT RETAILER VEHICLE REQUIREMENTS.

Prior to commencing operations, a non-store front retailer shall provide the following information to the city.
(A) Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis productsProducts.
(BC) The year, make, model, color, license plate number, and vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis or cannabis productsProducts.
(CD) Proof of insurance as required in section 11-474(B) for any and all vehicles being used to deliver cannabis or cannabis productsProducts.
(DE) The licensee shall provide the city with the information required by this section in writing for any new vehicle that will be used to deliver cannabis and/or cannabis productsProducts prior to using the vehicle to deliver cannabis and/or cannabis productsProducts.
(EF) The commercialCommercial cannabis businessBusiness shall provide the city with any changes to the information required by this section in writing within 30 calendar days. (G) Delivery of cannabis products originating from the City of Oxnard are not authorized except from a retailer who has obtained both the necessary city and State permits and is in full compliance with this Section.

SEC. 11-487. OPERATING REQUIREMENTS FOR CULTIVATORS.
(A) No more than the number of cannabis cultivators authorized by Section 11-456 shall operate within the city at any one time.
(B) Approval of cultivation facilities shall be through approval of a development design review (DDR) permit to be issued by the Community Development Director of the city. The appeal of the approval or denial of such permit shall be to the Planning Commission pursuant to Section 11-466.
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(C) All commercial Outdoor Cultivation and Mixed-Light Cultivation of cannabis and nursery activity within the city is prohibited. It is hereby declared to be unlawful and a public nuisance for any Person owning, leasing, occupying, or having charge or possession of any parcel within any zoning district in the City of Oxnard to cause or allow such parcel to be used for the commercial outdoor cultivation of cannabis. (D) The commercial cultivation of cannabis must occur indoors in an approved indoor cultivation facility with a valid commercial cannabis business permit from the city under this Chapter.
(E) In no case shall cannabis plants be visible from the exterior of the building. (F) From a public right-of-way, there shall be no exterior evidence of commercial cannabis cultivation except for any signage authorized by the city. All signs shall conform with Section 16-595.
(G) Any pesticides and/or fertilizers used at the cultivation site shall be properly labeled and stored in accordance with Fire Dept. and City regulations to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife. (H) A commercial cannabis cultivation licensee shall comply with all applicable federal, State and local laws and regulations regarding use and disposal of pesticides and fertilizers. (I) Each commercial cannabis cultivation licensee shall submit the following in addition to the information required to secure approval of a commercial cannabis business permit:
(1) A cultivation and operations plan shall be submitted for City review and approval which will identify the type(s) of cannabis plant to be grown (species/strain), cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
(2) A monthly and yearly projected water usage plan. The plan shall include water conservation and recycling measures for capture and reuse of on site water, water treatment plan and wastewater discharge plan. Said plan shall be reviewed and approved by the City.

Every attempt should be made by the licensee to connect to the City’s recycled water line when feasible.
(3) An energy usage and conservation plan which identifies the sources of power, projected monthly and yearly usage, and efficiency plan, including use of on site renewables.
(4) Neighborhood compatibility plan which shall address odor security, safety, and other compatibility issues which may derive from the cultivation site and as requested by the City.
(5) Floor plan identifying the location, dimensions, and boundaries of all proposed canopy areas taking into account space needed for ongoing care of plants and a description of the proposed method of physically delineating those boundaries at the 35 644
site.
(J) A permittee shall only be allowed to cultivate the square feet of canopy space permitted by State law and in the Commercial Cannabis Business Permit issued by the city for the premises.

SEC. 11-488. PROMULGATION OF REGULATIONS, STANDARDS AND OTHER LEGAL DUTIES.
(A) In addition to any regulations adopted by the city council, the city manager or his or her designee is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses and the city’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this article.
(B) Regulations shall be published on the city’s website. (C) Regulations promulgated by the city manager shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all stateState and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the city manager or his or her designee. (D) Testing laboratories, distribution facilities and special events shall be subject to State law and shall be subject to additional regulations as determined from time to time as more regulations are developed pursuant to this section and any subsequent State of California legislation regarding the same.

SEC. 11-489. COMMUNITY RELATIONS.
(A) Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within 600 feet of the commercial cannabis business.
(B) During the first year of operation pursuant to this article, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this article shall attend quarterly meetings with the city manager or his or her designee(s), and other interested parties as deemed appropriate by the city manager or his or her designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of this article. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the city manager or his or her designee(s) when and as requested by the city manager or his or her designee(s). (C) Commercial cannabis businesses to which a permit is issued pursuant to this article shall describe benefits that the cannabis business would provide to the local community, such as community contributions, volunteer services and/or economic incentives, stated in the Community Benefits Agreement.
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SEC. 11-490. PERMIT HOLDER RESPONSIBLE FOR VIOLATIONS.

The person to whom a commercial cannabis business permit is issued pursuant to this article 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 Oxnard. whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder’s presence.

SEC. 11-491. INSPECTION AND ENFORCEMENT.
(A) The city manager, or his or her designee(s) charged with enforcing the provisions of the City of Oxnard code, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this article or under applicable provisions of State law. (B) It is unlawful for any personPerson having responsibility over the operation of a commercial 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 commercial cannabis business under this article 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 commercial cannabis business under this article or under State or local law. (C) The city manager, or his or her designee(s) charged with enforcing the provisions of this article may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of Oxnard shall be logged, recorded, and maintained in accordance with established procedures by the City of Oxnard city manager or these regulations.

SEC. 11-492. COMPLIANCE WITH STATE REGULATIONS.

It is the stated intent of this article to regulate commercial cannabis activity in the City of Oxnard in compliance with all provisions MAUCRSA and any subsequent State legislation.

SEC. 11-493. VIOLATIONS DECLARED A PUBLIC NUISANCE.

Each and every violation of the provisions of this article is hereby deemed unlawful and a public nuisance.

SEC. 11-494. EACH VIOLATION A SEPARATE OFFENSE.

Each and every violation of this article shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City of Oxnard. 37 646
Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, any permit issued pursuant to this article being deemed null and void, disgorgement and payment to the city for 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 Oxnard may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city manager, or his or her designee(s), may take immediate action to temporarily suspend a commercial cannabis business permit issued by the city, pending a hearing before the city manager, or his or her designee(s).

SEC. 11-495. CRIMINAL PENALTIES.

Each and every violation of the provisions of this article may at the discretion of the district attorney or city attorney be prosecuted as an infraction or misdemeanor and upon conviction be subject to imprisonment in the county jail for a period of not more than six months, or both such fine and imprisonment. Each commercial cannabis business may be cited for any violation of any law and/or any rule, regulation and/or standard adoption pursuant to this article. A fine not to exceed $10,000 for the first violation, $15,000 for the second violation and revocation of the permit for a period of two years after which time the business operator would have to reapply. The fine for operating an unlicensed and/or unpermitted commercial cannabis business shall be $30,000 per day and the issuance of a notice to appear in court. Each day a violation is committed or permitted to continue shall constitute a separate offense. At the discretion of the city manager or his or her designee, higher or lower fines or penalties may be recommended based on the facts of individual cases where generally supported by aggravating or mitigating circumstances. Aggravating factors may include, but are not limited to: prior disciplinary history, nature and severity of the act(s), violations, offenses, or crime(s) under consideration, actual or potential harm to the public, actual or potential harm to any consumer, prior warning letters, licensee involvement, premises in high crime area, lack of cooperation by licensee in investigation, appearance and actual age of minor, continuing course or pattern of conduct. Mitigating factors may include, but are not limited to: length of licensure at subject location without prior discipline problems, positive action by licensee to correct problem, documented training of licensee and employees and cooperation by licensee in investigation.

SEC. 11-496. 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.

SEC. 16-163. INDUSTRIAL LAND USES BY ZONE: INDUSTRIAL LAND USE MATRIX.

The allowed land uses in the industrial zoning districts are identified in the following table, subject to the limitations identified in the Notes Section.

Industrial Land Use Matrix
Key:

Blank: Not Allowed P: Permitted Use (Requires a Zone Clearance) SUP: Special Use Permit DDR: Development Design Review Permit 38 647
Land Use Zone District
CM BRP M-L M-1 M-2 Notes
Administrative, executive, and/or
corporate offices which are a part of
a predominantly industrial
operation, including governmental
offices and facilities

P P P P P
Administrative, financial,
professional, medical, and general
office services

SUP DDR DDR
Agricultural, limited to growing of crops P P P P P
Aircraft modification, storage, repair,
and maintenance
P P
Aircraft sales P P P P
Alcohol sales: on-site, off-site, and
wine tasting

SUP SUP SUP SUP
Ambulance base facilities P P P P P
Appliance repairs P P P
Asphalt or concrete manufacture
or refining
DDR
Assembly or repair of small
electrical and electronic
equipment
P P P
Assisted living residential facility SUP
Auction houses P P P P P
Boat building and repair P P
Boiler repair and maintenance P P
Book binding P P P P P
39 648
Bottling/canning plants P P P
Breweries, microbrew
(less than 60,000 barrels). A SUP
is required if including tasting
rooms

DDR DDR DDR DDR
Breweries, craft
(more than 60,000 barrels, less than
2 million barrels). A SUP is required if
including tasting rooms

DDR DDR DDR DDR
Breweries, large
(more than 2 million barrels)

DDR DDR
Brick, tile, or terra cotta manufacture DDR DDR
Business furniture, supplies, and P P P
equipment sales
Cabinet or carpenter shops P P P P
Cafeterias accessory to permitted
uses for the convenience of persons
employed on the premises

P P P P
Carpet, rug, and dry-cleaning plants P P P P
Cement, glass, lime, gypsum, or
plaster manufacture
DDR
Ceramic products P P P P
Children’s day care facility serving
more than 15 children

SUP SUP
Churches SUP SUP SUP SUP SUP Refer to section
16-162(B)
Coffee shops, cafes P P DDR DDR DDR
Cold storage facilities including
agricultural freezers and ice
production and sales
P P P
Commercial and retail uses P DDR DDR DDR Refer to section 16-171 Commercial Cannabis Activities
Cultivation DDR DDR DDR DDR Refer to sections
11-473 and 16-173
40 649
Distribution DD
R
DD
R
DD
R
DD
R
See section
16-173; Article
XVII Chapter
11Refer to
sections 11-473
and 16-173
Manufacturing DD
R
DD
R
DD
R
DD
R
See section
16-173; Article
XVII Chapter
11Refer to
sections 11-473
and 16-173
Retail SUP See section
16-173; Article
XVII Chapter
11Refer to
sections 11-473
and 16-173
Testing DD
R
DD
R
DD
R
DD
R
See section
16-173; Article
XVII Chapter
11Refer to
sections 11-473
and 16-173
Commercial recreational and
entertainment uses, such as batting
cages, gymnasiums, boxing gyms,
escape rooms, bowling alleys,
skating rinks, and similar
recreational uses as determined by
the planning manager

DDR DDR DDR DDR
Computer and business machine
sales and service
P P P
Convenience markets and drugstores P DDR
Corporate training and professional
development facilities including
ancillary outdoor activities

P P P P P
Day care facilities accessory to
industrial uses

DDR DDR DDR
Day care facilities (over 12 children)
as a principal use

DDR DDR
41 650
Distribution, warehousing, and
wholesaling

P P P P P
Drive-through services SUP SUP SUP
Drop forge industries DDR
Dwelling unit, one per establishment,
for security or management when
located on the premises where such
person is employed in such capacity
and
accessory to an industrial use

DDR DDR DDR DDR
Electric motor rebuilding P P P P
Electrical and lighting supply P P
Electronic and computer repair P P P
Emergency shelter for families SUP P
Emergency shelter, permanent SUP P
Emergency shelter, temporary SUP P
Employment agencies P P
Energy generation, distribution,
storage, and support facilities,
including electrical and gas utilities

SUP SUP SUP SUP DDR
Explosives, manufacture or storage DDR
Farmworker housing SUP P P P
Feed sales P P P
Fertilizer manufacture DDR
Firearm and ammunition sales SUP Refer to Chapter
16, Division 19
Fish smoking, processing, curing,
or canning

DDR DDR
Florists P P
Freight classification yard, including
truck and bus storage and
maintenance
DDR P
Furniture manufacture and assembly P P P P
42 651
Furniture upholstery shops P P P
Garbage, offal, or dead animal
reduction or dumping
P
Garment manufacturing P P P P
Gas bulk storage, manufacturing,
and distribution of flammable liquids
and all gases
DDR
General office, including legal,
professional, medical, consulting,
or similar
P P
Indoor firearm range SUP Refer to Chapter
16, Division 20
Iron, steel, brass, or copper foundry
or fabrication plant

SUP DDR
Kennels and animal boarding DDR DDR DDR DDR
Kennel day care P P P P
Laboratories, research only P P
Laundry, commercial P P P P
Light metal fabrication (for example,
sheet metal, wrought iron, and the
like)

P P P P
Lumber yards with incidental sales of
building and hardware supplies
(outside

SUP SUP P
storage)
Machine shops P P P P
Manufacture and assembly of
electrical and electronic instruments,
devices, and components

P P P P P
Manufacturing and maintenance
of electric neon signs

P P P P
Manufacturing, compounding
assembly, or treatment of articles or
merchandise from prepared materials
such as, but not limited to, canvas,
P P P
43 652
cloth, stones, wood products, and
leather
Manufacturing, compounding,
processing, packaging, or treatment of
food products such as, but not limited
to, bakery, dairy, fruits and
vegetables, and honey
P P P
Marine equipment sales with
incidental repair and service

P P P P
Medical product sales P P P
Medical: hospitals and medical centers SUP
Metals recycling and storage,
including sales

SUP DDR
Mini-warehouses and
self-storage facilities
SUP SUP SUP SUP Refer to Resolution
No. 6446
Mobile home sales and display DDR DDR DDR DDR
Motels, hotels, and convention facilities SUP SUP
Multifamily Residential uses up to
30 dwelling units per acre on
parcels identified in the AHD
additive zone, subject to the
provisions in section 16-420
SUP
Off-site non-accessory signs or
billboards
SUP Refer to section
16-608(G)
Oilcloth or linoleum manufacture P
Outdoor storage or assembly as
a primary use
SUP
Outdoor storage, incidental/accessory
to uses otherwise permitted

DDR DDR DDR
Paint, oil, shellac, turpentine,
and varnish manufacture
DDR
Paper and pulp manufacture DDR
Pawnshops SUP
Petroleum bulk plants and distribution SUP DDR
Petroleum refining DDR
Photographic studios and services P P P
44 653
Pla
nningmillsSUPDDR
PlasticmanufacturePP
PlumbingsupplyPPP
Printingshop, lithographing, photocopying, blueprinting, and publishingPPPPP Productassemblyplantsand
productionfacilitiesprimarilyengaged in final or
PPPPP
partial assemblingofpackagingof
premanufactured, treated, or
fabricatedcomponents, materials, or
products
Publicserviceuses-
communications, fireandpolice, water, and other governmental o r
publicfacilities

DDRDDRDDRDDRDDR
RadioortelevisionbroadcastingstationPPPPP
RailroadsupportservicesSUPDDR
Recyclingcollection: collection
recyclingfacilityfortheacceptanceof
materialsfromthepublic includinga
bulkorsingle-feedreversevending
machine, akioskunit, orapermanent
building
DDRDDR
Recyclingmobileunit: mobile
recyclingunitusedforthecollection
ofrecycledmaterials includingthe
bins, boxes, orcontainersforthe
collectionofrecyclablematerials

DDRDDRDDRDDR
Recyclingprocessingfacility: processing facility for ferrous and
non-ferrousmaterials includingthe
preparationofmaterial forefficient
shipmentwhich includesbaling, briquetting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning, and re manufacturing. Outdoor bin storage allowed for the collectio n
ofrecycledmaterials
SUPSUP
45 654
Refrigeration and air conditioning
repair and service

P P P P
Research and development,
experimental or developmental
laboratories

P P P P
Research, development, and
clinical laboratories and uses
including
associated incidental and
outpatient clinics
P
Restaurants and delicatessens P P P DDR DDR
Rock crusher or distribution of
rock, sand, or gravel
DDR
Sale of building and hardware
supplies within a building

P P P P
Specialized commercial retail
centers oriented toward major
transportation elements such as
freeways,
expressways, and other major
transportation corridors. Specialized
commercial uses include promotional,
discount, factory outlet, and off-price
shopping centers, as well as centers
that are tourist-oriented or oriented to
other specialized markets.

Specialized commercial uses may
also include general commercial uses
in special or unique settings
SUP
Stationery and office supplies P P
Supportive housing SUP
Taxidermist P P P
Textiles manufacturing P P P
Trade schools, public and
private schools and colleges,
dance, and performing arts
studios

P P DDR
Transitional housing SUP
Vehicle assembly SUP DDR
46 655
Vehicle and equipment dismantling
and recycling, including sale of parts
and vehicles
SUP
Vehicle rental agencies DDR DDR DDR
Vehicle repair, including engine
overhaul, body and fender work,
transmission, radiator repair,
painting, and upholstering

P P P P
Vehicle service stations SUP SUP SUP SUP DDR
Vehicle storage SUP SUP
Veterinarians with on-site kennels DDR DDR DDR DDR
Veterinarians with no on-site kennels P P P P
Welding shops P P P
Wine production facility SUP P P
Wine tasting with or without cafes SUP SUP SUP
SEC. 16-173. DEVELOPMENT DESIGN REVIEW PERMIT REQUIRED FOR SPECIFIC COMMERCIAL CANNABIS ACTIVITIES. (A) A commercial cannabis business for cultivating, manufacturing, testing and/or distribution of cannabis may be permitted in the business and research park (BRP) zone, the limited manufacturing (M-L) zone, the light manufacturing (M-1) zone, and the heavy manufacturing (M-2) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a development design review (DDR) permit.
(B) A commercial cannabis business for retail uses may bybe permitted in the business and research park (BRP) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a special use permit.
(C) A commercial cannabis business for retail uses may be permitted in the planned development (additive) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a special use permit (SUP). A commercial cannabis business for cultivating, manufacturing, testing and/or distribution of cannabis may be permitted in the planned development (additive) zone, provided that the owner has first obtained a commercial cannabis business permit pursuant to article XVI, chapter 11 of the Oxnard city code and a development design review (DDR) permit.
47 656
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£¤101
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Sakioka Farms Business
Park Specific Plan
McInnes Ranch Business
Park Specific Plan
Northfield & Seagate Business
Park Specific Plan
Channel Island
Business Center
Arcturus Ave
Statham Business Park
This
²
map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon.

Legend
Proposed Commercial
Cannabis Cultivation Area
4,000 0 4,000 8,000
Feet Created by: Geographic Information Systems Division, July 2023 Proposed Commercial Cannabis Cultivation Locations
657
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E HUENEME RD
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AV
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HARBOR
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¤£101
Sakioka Farms Business
Park Specific Plan Area
McInnes Ranch Business
Park Specific Plan Area
Northfield & Seagate Business
Park Specific Plan Area
Channel Islands
Business Center
Arcturus Ave
Statham Business Park
Trabajo Dr
Area
Camino Real Business
Park Specific Plan Area
This
²
map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon.

Legend
Proposed Commercial
Cannabis Cultivation Area
4,000 0 4,000 8,000
Feet
Created by: Geographic Information Systems Division, September 2023 Proposed Commercial Cannabis Cultivation Locations
658
Trabajo Dr Area Camino Real Business Park Specific Plan Area .
0 500 1,000
Feet
Created by: Geographic Information Systems Division
Trabajo Dr / Camino Real Business Park Specific Plan Area This map is compiled by the City of Oxnard GIS Division, which is developed and operated solely for the convenience of the City. The City does not make any representations or warranties regarding the use, accuracy, reliability, and/or completeness of this map and no decision involving a risk of economic loss or physical injury should be made in reliance thereon.

Map Produced September 19, 2023
N
Del Norte Blvd N
Del Norte Blvd
Ventura Blvd
Ventura Blvd
Orange DrOrange Dr
CCaamino Ave
Almond DrAlmond Dr
Sakioka Dr
Trabajo Dr Trabajo Dr
B oi ol gy Pl B oi ol gy Pl
Synergy Cir Synergy Cir
§¨¦ Ventura Bl
101
659
Zoning Text Amendments (ZTA)
Commercial cannabis regulations
(Manufacturing, Distribution, Testing, &
Retail Dispensaries)
Creation of indoor commercial cannabis
cultivation regulations
Planning & Zoning (PZ) Permit No. 23-580-02
Kathleen Mallory, Planning & Sustainability Manager
Community Development Department
City Council
October 3, 2023
660
Background 2
• Proposed Oxnard City Code (OCC) currently allows the
following cannabis uses: retail dispensaries (16 licenses); manufacturing (8 licenses); distribution (3 licenses); & testing laboratories (1 license);
• October 2020, City Council provided direction to allow up to two (2) indoor or outdoor cannabis cultivators; and
• January 24, 2023, the Community Services, Public Safety, Housing & Development Committee (“Committee”)
supported allowing only indoor cannabis cultivation, &
increasing the number of cannabis cultivation licenses from two (2) to up to five (5).
661
Background 3
• Committee supported the locations where cannabis
cultivation was conceptually permitted; prohibit indoor cultivation within the Rose Santa Clara Corridor Specific Plan area; and
• August 3, 2023 Planning Commission reviewed the draft cultivation ordinance; and amendments to Chapters 11 & 16 - recommended adoption of ZTA’s and proposed indoor
cultivation regulations.
662
Analysis 4
Proposed ZTA’s address changes identified by staff to:

1.) Improve the regulatory process/streamline cannabis uses through renewal & in future solicitations;

2.) Conduct process changes supported by the Police Dept. & other City Depts;

3.) Align sections of the cannabis ordinance to existing OCC processes; and

4.) Ensure that processes match State laws adopted since initial OCC cannabis regulations.
663
Analysis 5
• Proposed cultivation ordinance allows up to five (5) indoor cultivation licensees, conceptually in six (6) areas of the City. • Conceptually indoor cultivation could occur in the following locations:

1.) Sakioka Farms Business Park Specific Plan

2.) McInnes Ranch Business Park Specific Plan

3.) Arcturus Ave.

4.) Northfield & Seagate Business Park Specific Plan

5.) Channel Islands Business Center

6.) Statham Business Park
664
Conceptual Locations 6
665
Analysis 7
• 2018 maps conceptually represented where cultivation would be permitted. Maps were publicly available; presented to the City Council for approval; and
• 2018 maps identified two additional cultivation areas under the title of ‘Sakioka Area’:

1. Trabajo Dr. area; and

2. Camino Real Business Park Specific Plan area.
• Staff recommends the inclusion of the two additional areas for potential future indoor cannabis cultivation.
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New Conceptual Locations 8
667
Financial Impact 9
• No immediate financial impact to the City;
• Updated annual revenue estimates; increase in the number of cannabis cultivators;
• Taxes paid dependent upon canopy size and lighting
conditions; and
• Tax rate structure adjusted annually based upon the
Consumer Price Index (“CPI”).

Business Type Number Low Tax Rate Low Estimate High Tax Rate High Estimate
2018 Cultivation
Estimates 2 $7/sf $140,000 $10/sf $200,000
2022 Cultivation
Estimates 5 $7/sf $350,000 $10/sf $500,000
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Recommendation 10
That the City Council:

A. Open the public hearing to introduce an ordinance
amending Chapters 11 and 16 of the Oxnard City Code;
B. Determine if the City Council wishes to include the Trabajo Dr. area, and Camino Real Business Park Specific Plan
area for indoor cannabis cultivation, as originally depicted in the 2018 cannabis cultivation map presented to the City Council;
669
Recommendation 11
C. If the City Council does not wish to include the Trabajo Dr. area, and Camino Real Business Park Specific Plan area
for indoor cannabis cultivation, approve the introduction and first reading by title only and waive further reading of an ordinance titled:

An ordinance of the City Council of the City of Oxnard
amending the Oxnard City Code (OCC) Chapters 11 and
16 pertaining commercial cannabis activity (Zoning Text Amendment; PZ No. 23-580-02); and incorporate
commercial cannabis cultivation (Section 16-163 and an
amendment to OCC Chapters 11 and 16 to allow up to five (5) indoor commercial cannabis cultivators in six (6)
identified areas of the City.
670
Recommendation 12
D. Alternatively, if the City Council does wish to include Trabajo Dr. area, and Camino Real Business Park Specific Plan area for indoor cultivation, approve the introduction and first reading by title only and waive further reading of the following ordinance with the direction that the Trabajo Dr. area, and Camino Real Business Park Specific Plan
area be included within the areas in which cultivation is allowed:

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.1
DATE: October 3, 2023
TO: City Council
FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, 805-385-5400, [email protected] SUBJECT: Recommendation to Acquire and Implement Budget Software. (10 minutes)

RECOMMENDATION
That the City Council:

1. Approve and authorize the City Manager to execute a five-year agreement with OpenGov, Inc. for OpenGov Budgeting & Planning software as well as OpenGov Reporting & Transparency software for a not to exceed amount of $771,493; and

2. Approve a budget appropriation of $60,110 in the Fiscal Year 2023-24 Information Technology Fund, from the available fund balance.
(The Finance & Governance Committee approved 3-0 on September 26, 2023) Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/PLkICeWv76U

BACKGROUND
In October 2019, the City Council awarded a contract to Tyler Technologies for its integrated enterprise resource planning (ERP) to replace existing software and manual processes. The Core Financials implementation phase of the ERP was completed and launched on October 1, 2022. This is the largest and most complex phase of the ERP, which included Purchasing (requisitions, purchase orders, contracts), Accounts Payable (receiving invoices and issuing payments), Accounts Receivable (billing for City fees and charges and processing payments), Project Management (accounting for capital improvements within the City’s limit, and grant accounting), recording all financial transactions that result in monthly issuance of reports (balance sheet, cash flow, statement of governments activities), and financial planning with budget controls. The City is currently using these various ERP tools, and they have significantly improved our financial processes.

As discussed in the ERP system annual report to Council on March 21, 2023, it became apparent during the implementation of Core Financials that the existing budget modules within Tyler Munis do not contain the functionality required for the City to complete its budget processes effectively. More specifically, Tyler Munis’ budget module proved to be incompatible with the City’s needs for payroll calculations and MOU forecasting, a lack of presentation tools such as pre-formatted Government Finance Officers Association (GFOA) requirements for award-winning budget book publication, and other areas where the Munis software is lacking as compared to software specifically designed for use in municipal budgeting. Learning about software through implementation and deciding to replace it is not unforeseen or reactive; it is common in implementations as complex as with a new ERP. Thus, the City did not implement the Munis budgeting software, and staff planned to search for new budgeting software after Core Financials went live.

The preparation of the City’s annual operating budget is a complex process that requires extensive coordination and collaboration among City’s departments. Due to a lack of funding, the City has for many years utilized a myriad of timeconsuming spreadsheets and other disparate tools and systems in order to prepare, present and publish budget 673
information. We currently do not have any budget software in place, and so our process is manual and cumbersome. We could have implemented the Tyler Munis budgeting software, but this software was lacking.

Creating a budget requires many moving parts and phases that involve back and forth with departments, the leadership team, and management before everything is finalized. There is a high degree of complexity that derives from gathering information from multiple sources–like Human Resources for positions and payroll data and departments' proposed expenses–consolidating the information into the budget spreadsheets, coordinating the changes into various spreadsheets, updating the latest numbers, gathering the latest files for consolidation, and reviewing multiple iterations and changes.

There is additional complexity derived from certain calculations to assign the appropriate budget to the different programs implemented by the City to serve the community and properly identify the funding sources that will support those services; for example, every time we change the Internal Service Fund (which is comprised of IT and Fleet needs that are distributed around the City to various funds), we must recalculate the impact on other funds.

The current process is manual and time-consuming, which increases the risk of incurring errors; reduces the time available for analysis and evaluation of alternatives that could yield more services to the community; and has limited reporting capabilities for transparency to the community and to inform decisions by the departments, management, and the City Council. It is an outdated process that was unfortunately necessary when the City could not afford better software, but it deserves overhaul to benefit the residents of Oxnard.

DISCUSSION
To minimize the probability of errors inherent with a manual process of inputting, consolidating, and transmitting financial data, staff has incorporated various safeguards and control measures into the budget development process.

Although this manual process has provided the City with successful budget preparation for many years, it requires an extensive level of coordination and a significant amount of staff time, which is not an effective or efficient way to prepare budgets and communicate financial data to the public. This is also time that could be spent on finding efficiencies in the departments, analyzing our budget to actuals, and better forecasting our budgetary needs. Furthermore, preparing the budget book requires many hours of manual work to copy and paste tables and charts from Excel spreadsheets into a Word document. This process is inherently prone to errors.

Besides replacing manual and inefficient processes, there are several benefits the City will realize as a result of a budget software implementation. The implementation of budget software will significantly help unify the end-to-end budgeting process from the initial stages of planning and personnel forecasting through final publication, while enabling improved collaboration throughout the process. City staff will be able to respond more quickly to changes that occur during the budget process since budget software allows for automated version control and tracks all changes made, including an automatic audit trail, detailing when and by which user a change was made. With the time saved by eliminating current manual processes, City staff will be able to provide more timely information, with the corresponding analysis and evaluation, during the budgeting process to allow for more time for department, management, council members and public input and decision making. Elimination of the manual budget book production will allow City staff to dedicate more time to enhancing the budget book by providing additional financial information, leading to improved transparency.

Multi-year forecasting can be performed within a budget software rather than manually with an Excel sheet, thereby increasing the time for review and analysis to be able to more proactively highlight any concerns to management and Council. Budget software solutions provide templates the City will utilize to meet the GFOA budget presentation award requirements. This award recognizes governments for their budgeting excellence in addition to the assurance it provides residents that their tax dollars are being spent appropriately. The budget book itself will be available in a digital format rather than only as a static pdf file posted to the City’s website. A digital budget book allows the public to more easily and selectively browse the budget via a linked navigable table of contents. A budget in brief can also be published to provide high level budget summaries with drill down capabilities to provide more detail. Since the budget book will not be manually created, it can be published sooner and therefore provide financial information to the public earlier compared to past budget cycles.

Procurement
Once Munis was implemented and stabilized, City staff began searching for alternative providers of budgeting software 674
used by similar municipalities in California and elsewhere. City staff received three demonstrations in July 2023 for budget software solutions, inviting representatives from each City department to view and participate. The three software solutions viewed were OpenGov, ClearGov and Questica. Budget staff scored each demonstration against twenty qualitative criteria they had predetermined, including the overall time taken to develop a full city budget, compatibility with the City’s existing ERP systems, budget book development, regular and ad-hoc management reporting, empowering departments throughout the budget process, tracking, monitoring and approval of changes and implementation steps required.

Out of a possible 300 points, OpenGov received a score of 215, Questica received 186, and ClearGov received 137.

Following the demonstrations, staff reached out to these three vendors with a prioritized list of features for the City, requesting a cost proposal based on implementing the software to meet those priorities. OpenGov and ClearGov submitted cost proposals; Questica did not provide any cost proposal by the deadline and, therefore, was excluded from the selection process. OpenGov and ClearGov provided cost proposals that included one-time implementation costs and annual subscription fees across an initial five-year contract term.

Cost Proposals ClearGov OpenGov
One Time
Implementation (Incl.

Training/Travel/Contingency)
17,550 62,775
Year 1 License (FY24) 83,005 87,270
Year 2 License (FY25) 85,495 146,347
Year 3 License (FY26) 88,060 152,201
Year 4 License (FY27) 93,344 158,289
Year 5 License (FY28) 98,944 164,620
Total Agreement 466,398 771,493
Average Per Year $ 93,280 $ 154,298
Staff’s Recommendation
Staff determined that OpenGov includes all functionality requested and can provide the best value to the City, while ClearGov cannot provide interfaces with the current ERP, requires additional manual work, and has reduced reporting and forecasting capabilities. While ClearGov does allow staff to create and maintain a budget, that budget is not automatically linked to the actual expenses incurred against it. So, for example, if Council appropriates $500,000 to a construction project in the budget, the project manager will not be able to see the actuals against the budget unless there is a manual upload of the actual expenses. In contrast, OpenGov merges the budget through automatic integration with the actual accounting information in real time. For example, when an invoice in the amount of $100,000 related to a project is processed and approved, OpenGov will show the project manager that the project only has $400,000 left in its budget.

This allows our staff to better manage their budgets in real time and use every last penny. The software would also allow us to identify early those areas where there are opportunities to reallocate resources during the fiscal year. For example, if 675
a program is awarded $100,000 every year, and by mid-year the project manager regularly spends $80,000, but midway through this year she has only spent $50,000, we can consider moving the extra funding elsewhere during the year rather than waiting until the next budget cycle. For this reason, staff considers it vital that the budget system is able to provide year-round analysis, tied to the actual data as recorded in the ERP system, in order to leverage the investments made in the financial software, to the benefit of all City funds. Year-round reporting and analysis will allow for major improvements in the accuracy and timeliness of financial information available, leading to more informed decision making.

OpenGov offers full-featured, cloud-based, budgeting software designed for public agencies. As an integrated budgeting and planning solution, it will allow staff to develop their department budgets in a more streamlined, systematic, and repeatable way. With the efficiencies gained in OpenGov, staff will be able to divert more time to analysis and evaluation of programs, policies, and operations supporting all City programs and initiatives. Departments will be empowered to more proactively monitor their budgets given the enhanced budgeting tools available, which will lead to more accurate and timely analysis. Additionally, the software includes an online budget book and dashboarding capabilities to present financial data in graphic format–in line with GFOA best practices–as well as transparency tools to help tie together and organize the City’s multi-department budget according to different strategic initiatives or priorities.

As part of the public transparency portal, OpenGov has already mapped the City’s chart of accounts, so is uniquely placed to deliver a fast and accurate implementation over the coming weeks and months.

To summarize the offerings of the three budget software options:

Tyler Munis ClearGov OpenGov
Efficient Operating and Personnel
Budgeting, including Approval and
Version Control.
✔ ✔
Budget Book / Online Budget
Preparation and Presentation (GFOA
eligible)
✔ ✔
Integration with ERP Financials ✔ ✔
Regular Efficient Budget Monitoring
and Reporting
✔
Multi Year Forecasting Capability ✔ ✔
Speedy Implementation ✔
City staff received exceptional references from other California cities that use the combination of Tyler Munis and OpenGov, who have leveraged OpenGov’s ability to interface with Tyler Munis. Other cities using OpenGov, integrated with Tyler Munis include Hayward, Santa Barbara, Pasadena, Yorba Linda and Victorville. Interfacing with Munis streamlines data for reporting and planning purposes, without the need for duplicative efforts that can often lead to errors or time-consuming reconciliations. ClearGov does not provide this same functionality, and their references confirmed use of the software is limited to development of the annual budget.

OpenGov has a current cooperative agreement from which the City would be eligible to “piggyback.” This provides significant cost savings, and staff was able to negotiate a further reduction on the five-year pricing. If the contract is approved, staff anticipates a project kickoff in October 2023. This will allow time to set up and configure the system per City specifications so that it may be used to prepare significant portions of the FY 2024-25 Operating Budget. (To be clear, this is not a disparate budget software system; this software will be integrated into the ERP so the two systems communicate with each other.) In future years, we plan to roll out more components of the software so it is used to its potential. Staff anticipates the full implementation of all features as part of the FY 2025-26 budget, including Capital Improvement Project budgeting. Finally, contract 32300421, for financial transparency online reporting, will be canceled and superseded with the new agreement.

STRATEGIC PRIORITIES
This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a 676
modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT
The Fiscal Year 2023-24 Information Technology fund adopted budget includes appropriations of $33,000 for the financial transparency portal provided by OpenGov under contract 32300421. Staff recommends appropriating the additional $60,110 of the first year costs ($93,110 subscription less $33,000 financial transparency) from available Information Technology Fund Balance in Fiscal Year 2023-24. There are sufficient FY2023-24 appropriations in the General Fund Finance Department operating budget to cover the one time implementation cost of $62,775. Future budget processes will include the appropriations necessary to pay for the subsequent years of the agreement.

For Finance Use only: Information Technology Fund (Org. 7311804 Obj. 53001)

COMMITTEE OUTCOME
The item will go before the Finance & Governance Committee on September 26, 2023. As of the date of printing of this agenda item, the Committee outcome of this item was still unknown.

Prepared by: Javier Chagoyen-Lazaro, Chief Financial Officer

ATTACHMENTS

1. Agreement

2. Budget Software Acquisition and Implementation Presentation 677

OPENGOV SOFTWARE SERVICES AGREEMENT
This Software Services Agreement (this "Agreement") is entered into by 0penGov, Inc., a Delaware corporation with a principal place of business at 6525 Crown Blvd #41340, San Jose, CA 95160 ("Open Gov") and the customer listed on the signature block below ("Customer"), as of the date of last signature below {the "Effective Date"). This Agreement sets forth the terms under which Customer will be permitted to use OpenGov's hosted software services.

1. DEFINITIONS
"Customer Data" means data that is provided by Customer to OpenGov pursuant to this Agreement (for example, by email or through Customer's software systems of record). Customer Data shall not include any confidential personally identifiable information.
"Documentation" means the documentation for the Software Services at the Customer Resource Center page found at https://opengov.zendesk.com.
"Feedback" means suggestions, comments, improvements, ideas, or other feedback or materials regarding the Software Services provided by Customer to OpenGov, including feedback provided through online developer community forums.
"Initial Term" means the initial license term specified in number of years on the Order Form, commencing on the Effective Date.
"Intellectual Property Rights" means all intellectual property rights including all past, present, and future rights associated with works of authorship, including exclusive exploitation rights, copyrights, and moral rights, trademark and trade name rights and similar rights, trade secret rights, patent rights, and any other proprietary rights in intellectual property of every kind and nature.
"Order Form" means OpenGov's Software Services order form that: (a) specifies the Software Services provided by OpenGov; (b) references this Agreement; and (c) is signed by authorized representatives of both parties.
"Renewal Term" means each additional renewal period, which shall be for a period of a one (1) year or a greater period mutually agreed upon between the parties, for which this Agreement is extended pursuant to Section

7.2. 2. SOFTWARE SERVICES, SUPPORT AND PROFESSIONAL SERVICES

2.1 Software Services. Subject to the terms and conditions of this Agreement, OpenGov will use commercially reasonable efforts to perform the software services identified in the applicable Order Form entered into by OpenGov and Customer ("Software Services").

2.2 Support & Service Levels. Customer support is available by email to [email protected] or by using the chat messaging functionality of the Software Services, both of which are available during OpenGov's standard business hours. Customer may report issues any time. However, OpenGov will address issues during business hours. OpenGov will provide support for the Software Services in accordance with the Support and Software Service Levels found at https://opengov.com/service-sla, as long as Customer is entitled to receive support under the applicable Order Form and this Agreement.

2.3 Professional Services.
(a) If OpenGov or its authorized independent contractors provides professional services to Customer, such as implementation services, then these professional services will be described in a statement of work ("SOW') agreed to by the parties (the "Professional Services"). Unless otherwise specified in th SOW, any pre-paid Professional Services Fees must be utilized within one (1) year from the Effective Date. Any unused pre-paid Professional Services Fees shall be forfeited.

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(b) Unless the SOW provides otherwise, all reasonable travel expenses, pre-approved by Customer and incurred by OpenGov in performing the professional services will be reimbursed by Customer. Travel expenses include cost of coach airfare travel round trip from the individual's location to Customer's location, reasonable hotel accommodations, ground transportation and meals.

3. RESTRICTIONS AND RESPONSIBILITIES

3.1 Restrictions. Customer may not use the Software Services in any manner or for any purpose other than as expressly permitted by the Agreement. Customer shall not, and shall not permit or enable any third party to: (a) use or access any of the Software Services to build a competitive product or service; (b) modify, disassemble, decompile, reverse engineer or otherwise make any derivative use of the Software Services (except to the extent applicable laws specifically prohibit such restriction); (c) sell, license, rent, lease, assign, distribute, display, host, disclose, outsource, copy or otherwise commercially exploit the Software Services; (d) perform or disclose any benchmarking or performance testing of the Software Services; (e) remove any proprietary notices included with the Software Services; (f) use the Software Services in violation of applicable law; or (g) transfer any confidential personally identifiable information to OpenGov or the Software Services platform.

3.2 Responsibilities. Customer shall be responsible for obtaining and maintaining computers and third party software systems of record (such as Customer's ERP systems) needed to connect to, access or otherwise use the Software Services. Customer also shall be responsible for: (a) ensuring that such equipment is compatible with the Software Services, (b) maintaining the security of such equipment, user accounts, passwords and files, and (c) all uses of Customer user accounts by any party other than OpenGov.

4. INTELLECTUAL PROPERTY RIGHTS; LICENSE GRANTS; ACCESS TO CUSTOMER DATA

4.1 Software Services. OpenGov retains all right, title, and interest in the Software Services and all Intellectual Property Rights in the Software Services. The look and feel of the Software Services, including any custom fonts, graphics and button icons, are the property of OpenGov and Customer may not copy, imitate, or use them, in whole or in part, without OpenGov's prior written consent. Subject to Customer's obligations under this Agreement, OpenGov hereby grants to Customer a non-exclusive, royalty-free license during the Term to use the Software Services.

4.2 Customer Data. Customer retains all right, title, and interest in the Customer Data and all Intellectual Property Rights therein. Customer hereby grants to OpenGov a non-exclusive, royalty-free license to, and permit its partners (which include, without limitation the hosting providers of the Software Services) to, use, store, edit and reformat the Customer Data, and to use Customer Data for purposes of sales, marketing, business development, product enhancement, customer service, or for analyzing such data and publicly disclosing such analysis ("Insights"), provided that in all such uses Customer Data is rendered anonymous such that Customer is no longer identifiable.

4.3 Access to Customer Data. Customer may download the Customer Data from the Software Services at any time during the Term, other than during routine software maintenance periods. OpenGov has no obligation to return Customer Data to Customer.

4.4 Feedback. Customer hereby grants to OpenGov a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license to use and incorporate into the Software Services and Documentation Customer's Feedback.

OpenGov will exclusively own any improvements or modifications to the Software Services and Documentation based on or derived from any of Customer's Feedback including all Intellectual Property Rights in and to the improvements and modifications.

5. CONFIDENTIALITY

5.1 Each party (the "Receiving Party") agrees not to disclose any Confidential Information of the other party (the "Disclosing Party'') without the Disclosing Party's prior written consent, except as provided below. The Receiving Party further agrees: (a) to use and disclose the Confidential Information only in connection with this Agreement; and (b) to protect such Confidential Information using the measures that Receiving Party employs with respect to its own Confidential Information of a similar nature, but in no event with less than reasonable care. Notwithstanding the above, the Receiving Party may disclose Confidential Information to the extent required by law or court order, provided that prior written notice of such required disclosure and an opportunity to oppose or limit disclosure is given to the Disclosing Party.

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5.2 "Confidential Information" means all confidential business, technical, and financial information of the disclosing party that is marked as "Confidential" or an equivalent designation or that should reasonably be understood to be confidential given the nature of the information and/or the circumstances surrounding the disclosure (including the terms of the applicable Software Agreement). OpenGov's Confidential Information includes, without limitation, the software underlying the Software Services and all Documentation.

5.3 Notwithstanding the foregoing, "Confidential lnfonmation" does not indude: (a) "Public Data," which is data that the Customer has previously released to the public, would be required to release to the public, upon request, according to applicable federal, state, or local public records laws, or Customer requests OpenGov make available to the public in conjunction with the Software Services. Confidential Information does not include (b) information that has become publicly known through no breach by the receiving party; (c)information that was rightfully received by the Receiving Party from a third party without restriction on use or disclosure; or (d) information independently developed by the Receiving Party without access to the Disclosing Party's Confidential lnfonmation.

6. PAYMENT OF FEES

6.1 Fees; Invoicing; Payment; Expenses.
(a) Fees. The fees for the Software Services for the Initial Term and any Renewal Term ("Software Services Fees") and the fees for Professional Services ("Professional Services Fees") are set forth in the applicable Order Form. Software Services Fees and Professional Services Fees shall hereafter be referred to as "Fees". Except to the extent otherwise expressly stated in this Agreement or in an Order Fonm, (i) all obligations to pay Fees are noncancelable and all payments are non-refundable, (ii) Customer must pay all Fees due under all Order Forms and SOW within thirty (30) days after Customer receives each invoice (invoices are deemed received when OpenGov emails them to Customer's designated billing contact); (iii) the Software Service Fee shall be due annually in advance, and (iv) Customer must make all payments without setoffs, withholdings or deductions of any kind. (b) Annual Software Maintenance Price Adjustment. OpenGov shall increase the Fees payable for the Software Services during any Renewal Term by 5% each year of the Renewal 1erm. (c) Invoicing and Payment. OpenGov will invoice the Customer according to the Billing Frequency listed on the Order Form. Customer shall pay all invoices according to the Payment Terms listed on the Order Form. (d) Travel Expenses. Unless the SOW provides otherwise, OpenGov will invoice Customer for travel expenses, pre-approved by the Customer, incurred in connection with each SOW as they are incurred. Customer shall pay all such valid invoices within thirty (30) days of receipt of invoice. Each invoice shall include receipts for the travel expenses listed on the invoice.
(e) Customer Delays; On Hold Fee.

I. On Hold Notice. Excluding delays caused by Force Majeure as described in Section 10.5, if OpenGov determines that Customer's personnel or contractors are not completing Customer's responsibilities described in the applicable SOW timely or accurately, OpenGov shall promptly, but in no event more than thirty (30) days from the date of such determination deliver to Customer a notice (an "On Hold Notice") that (A) designates the Professional Services to be provided to the Customer as "On Hold", (B) detail Customer's obligations and responsibilities necessary for OpenGov to continue performing the Professional Services, and (C) specify the Customer shall be invoiced for lost time in production (e.g. delayed or lost revenue resulting from rescheduling work on other projects, delay in receiving milestone payments from Customer, equipment, hosting providers and human resources idle) for a fee equal to 10% of the first year Software Service Fee (the "On Hold Fee").

II. Effects of On Hold Notice. Upon issuing an On Hold Notice, Open Gov shall be entitled, without penalty, to (A) reallocate resources otherwise reserved for the performance of the Professional Services, and (B) stop or caused to be stopped the Professional Services to be provided to the Customer until the Customer has fulfilled its obligations as set forth in the On Hold Notice. OpenGov shall remove the "On Hold" status, only Rev. 2018.01_210428
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upon Customer's fulfillment of its obligations set out in the On Hold Notice, including payment of the On Hold Fee. Upon Customer's fulfillment of its obligations in the On Hold Notice, OpenGov may, in its sole discretion, extend the timeline to complete certain Professional Services up to six (6) weeks, depending on the availability of qualified team resources (OpenGov cannot guarantee that these team resources will be the same as those who were working on the project prior to it being placed On Hold). OpenGov shall bear no liability or otherwise be responsible for delays in the provision of the Professional Services occasioned by Customer's failure to complete Customer's responsibilities or adhere to a Customer schedule which were brought to the attention of the Customer on a timely basis, unless such delays result, directly or indirectly from the failure of Open Gov or its authorized independent contractors to perform the Professional Services in accordance with this Agreement or applicable SOW.

6.2 Consequences of Non-Payment. If Customer fails to make any payments required under any Order Form or SOW, then in addition to any other rights OpenGov may have under this Agreement or applicable law, (a) Customer will owe late interest penalty of 1.5% of the outstanding balance per month, or the maximum rate permitted by law, whichever is lower and {b) If Customer's account remains delinquent (with respect to payment of a valid invoice) for thirty (30) days after receipt of a delinquency notice from OpenGov, which may be provided via email to Customer's designated billing contact, OpenGov may temporarily suspend Customer's access to the Software Service for up to ninety (90) days to pursue good faith negotiations before pursuing termination in accordance with Section 7. Customer will continue to incur and owe all applicable Fees irrespective of any such Service suspension based on such Customer delinquency.

6.3 Taxes. All Fees under this Agreement are exclusive of any applicable sales, value-added, use or other taxes ("Sales Taxes"). Customer is solely responsible for any and all Sales Taxes, not including taxes based solely on OpenGov's net income. If any Sales Taxes related to the Fees under this Agreement are found at any time to be payable, the amount may be billed by OpenGov to, and shall be paid by, Customer. If Customer fails to pay any Sales Taxes, then Customer will be liable for any related penalties or interest, and will indemnify OpenGov for any liability or expense incurred in connection with such Sales Taxes. In the event Customer or the transactions contemplated by the Agreement are exempt from Sales Taxes, Customer agrees to provide OpenGov, as evidence of such tax exempt status, proper exemption certificates or other documentation acceptable to OpenGov. 7, TERM & TERMINATION
7 .1 Term. Subject to compliance with all terms and conditions, the term of this Agreement shall commence on the Effective Date and shall continue until the Subscription End Date specified on the Order Form (the "Initial Term") unless sooner terminated pursuant to Section 7.3 below.

7.2 Renewal. This Agreement may renew for another period mutually agreed upon between the parties (the "Renewal Term" and together with the Initial Term, the ''Term"), upon the Customer providing OpenGov of its intent to renew this Agreement in writing no less than thirty (30) days before the end of the Initial Term.

7.3 Termination. Neither party shall have the right to terminate this Agreement without a legally valid cause. If either party materially breaches any term of this Agreement and fails to cure such breach within thirty (30) days after notice by the non-breaching party (ten (10) days in the case of non-payment), the non-breaching party may terminate this Agreement.

7.4 Effect of Termination.
(a) In General. Upon termination pursuant to Section 7.3 or expiration of this Agreement pursuant to Section

7.1: (a) Customer shall pay in full for all Software Services and Professional Services performed up to and including the effective date of termination or expiration, (b) all Software Services provided to Customer hereunder shall immediately terminate; and (c) each party shall return to the other party or, at the other party's option, destroy all Confidential Information of the other party in its possession. (b) Deletion of Customer Data. Unless otherwise requested pursuant to this Section 7.4(b), upon the expiration or termination of this Agreement the Customer Data, excluding any Insights,' shall be deleted pursuant to OpenGov's standard data deletion and retention practices. Upon written request, Customer may request deletion of Customer Data, excluding any Insights, prior to the date of termination or expiration of this Agreement. Such Rev. 2018.01_210428
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request must be addressed to "OpenGov Vice President, Customer Success' at OpenGov's address for notice described at Section 10.
7 .5 Survival. The following sections of this Agreement shall survive termination: Section 5 (Confidentiality), Section 6 (Payment of Fees), Section 7.4(b) (Deletion of Customer Data), Section 8.3 (Warranty Disclaimer), Section 9 (Limitation of Liability) and Section 10 (Miscellaneous).

8. REPRESENTATIONS AND WARRANTIES; DISCLAIMER

8.1 By Open Gov.
(a) General Warranty. OpenGov represents and warrants that: (i) it has all right and authority necessary to enter into and perform this Agreement; and (ii) the Professional Services, if any, will be performed in a professional and workmanlike manner in accordance with the related statement of work and generally prevailing industry standards. For any breach of the Professional Services warranty, Customer's exclusive remedy and OpenGov's entire liability will be the re-performance of the applicable services. If OpenGov is unable to re-perform all such work as warranted, Customer will be entitled to recover all fees paid to OpenGov for the deficient work. Customer must make any claim under the foregoing warranty to OpenGov in writing within ninety (90) days of performance of such work in order to receive such warranty remedies.
(b) Software Services Warranty. OpenGov further represents and warrants that for a period of ninety (90) days, the Software Services will perform in all material respects in accordance with the Documentation. The foregoing warranty does not apply to any Software Services that have been used in a manner other than as set forth in the Documentation and authorized under this Agreement. OpenGov does not warrant that the Software Services will be uninterrupted or error-free. Any claim submitted under this Section 8.1 (b) must be submitted in writing to OpenGov during the Term. OpenGov's entire liability for any breach of the foregoing warranty is to repair or replace any nonconforming Software Services so that the affected portion of the Software Services operates as warranted or, if OpenGov is unable to do so, terminate the license for such Software Services and refund the prepaid, unused portion of the Fee for such Software Services.

8.2 By Customer. Customer represents and warrants that (i) it has all right and authority necessary to enter into and perform this Agreement; and (ii) OpenGov's use of the Customer Data pursuant to this Agreement will not infringe, violate or misappropriate the Intellectual Property Rights of any third party.

8.3 Disclaimer. OPENGOV DOES NOT WARRANT THAT THE SOFTWARE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SOFTWARE SERVICES. EXCEPT AS SET FORTH IN THIS SECTION 8, THE SOFTWARE SERVICES ARE PROVIDED "AS IS" AND OPENGOV DISCLAIMS ALL OTHER

WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

9. LIMITATION OF LIABILITY

9.1 By Type. NEITHER PARTY, NOR ITS SUPPLIERS, OFFICERS, AFFILIATES, REPRESENTATIVES,

CONTRACTORS OR EMPLOYEES, SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT

MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, OR OTHER THEORY: (A) FOR ERROR OR INTERRUPTION OF USE OR FOR LOSS OR INACCURACY OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY, PUNITIVE, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES; OR (C) FOR

ANY MATTER BEYOND SUCH PARTY'S REASONABLE CONTROL, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE.

9.2 By Amount. IN NO EVENT SHALL EITHER PARTY'S AGGREGATE, CUMULATIVE LIABILITY FOR ANY

CLAIMS ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT EXCEED THE FEES PAID BY

CUSTOMER TO OPENGOV (OR, IN THE CASE OF CUSTOMER, PAYABLE) FOR THE SOFTWARE SERVICES UNDER THIS AGREEMENT IN THE 12 MONTHS PRIOR TO THE ACT THAT GAVE RISE TO THE LIABILITY.

9.3 Limitation of Liability Exclusions. The limitations of liability set forth in Sections 9.1 and 9.2 above do not apply to, and each party accepts liability to the other for: (a) claims based on either party's intentional breach of its Rev. 2018.01_210428
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obligations set forth in Section 5 (Confidentiality), {b) claims arising out of fraud or willful misconduct by either party and (c) either party's unauthorized use, distribution, or disclosure of the other party's intellectual property.

9.4 No Limitation of Liability by Law. Because some jurisdictions do not allow liability or damages to be limited to the extent set forth above, some of the above limitations may not apply to Customer.

10. MISCELLANEOUS

10.1 Logo Use. OpenGov shall have the right to use and display Customer's logos and trade names for marketing and promotional purposes in connection with OpenGov's website and marketing materials, subject to Customer's trademark usage guidelines provided to OpenGov.

10.2 Notice. Ordinary day-to-day operational communications may be conducted by email, live chat or telephone communications. However, for notices, including legal notices, required by the Agreement (in Sections where the word "notice" appears) the parties must communicate more formally in a writing given by personal delivery, by prepaid first-class mail or by overnight courier to the address specified in the most recent Order Form (or such other address as may be specified in writing in accordance with this Section).

10.3 Anti-corruption. OpenGov has not offered or provided any bribe, kickback, illegal or improper payment, gift, or thing of value to any Customer personnel in connection with the Agreement, other than reasonable gifts and entertainment provided Customer in the ordinary course of business. If OpenGov become aware of any violation of the above restriction then OpenGov shall promptly notify Customer.

10.4 Injunctive Relief. The parties acknowledge that any breach of the confidentiality provisions or the unauthorized use of a party's intellectual property may result in serious and irreparable injury to the aggrieved party for which damages may not adequately compensate the aggrieved party. The parties agree, therefore, that, in addition to any other remedy that the aggrieved party may have, it shall be entitled to seek equitable injunctive relief without being required to post a bond or other surety or to prove either actual damages or that damages would be an inadequate remedy.

10.5 Force Majeure. Neither party shall be held responsible or liable for any losses arising out of any delay or failure in performance of any part of this Agreement, other than payment obligations, due to any act of god, act of governmental authority, or due to war, riot, labor difficulty, failure of performance by any third-party service, utilities, or equipment provider, or any other cause beyond the reasonable control of the party delayed or prevented from performing.

10.6 Severability; Waiver. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. Any express waiver or failure to exercise promptly any right under this Agreement will not create a continuing waiver or any expectation of non-enforcement. There are no third-party beneficiaries to this Agreement.

10.7 Assignment. Except as set forth in this Section, neither party shall assign, delegate, or otherwise transfer this Agreement or any of its rights or obligations to a third party without the other party's prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Either party may assign, without such consent but upon written notice, its rights and obligations under this Agreement to: (i) its corporate affiliate; or (ii) any entity that acquires all or substantially all of its capital stock or its assets related to this Agreement, through purchase, merger, consolidation, or otherwise. Any other attempted assignment shall be void. This Agreement shall inure to the benefit of and bind each party's permitted assigns and successors.

10.8 Independent Contractors. No agency, partnership, joint venture, or employment is created as a result of this Agreement and neither party has any authority of any kind to bind the other party in any respect.

10.9 Attorneys' Fees. In any action or proceeding to enforce rights under this Agreement, the prevailing party will be entitled to recover costs and attorneys' fees.

10.10 Governing Law and Jurisdiction. This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions. Exclusive jurisdiction for litigation of any dispute, controversy or claim arising out of or in connection with this Agreement shall be only in the Federal or State court with competent Rev. 2018.01_210428
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jurisdiction located in San Mateo County, California, and the parties hereby submit to the personal jurisdiction and venue therein.

10.11 Complete Agreement. This Agreement is the complete and exclusive statement of the mutual understanding of the parties. and supersedes and cancels aU pr,avlous written and oral agreements, communications, and other uridersta,11drn9s re.rating to the subject. matter of this Ag.reement No modiflcatio11 of thfs Agreement wm ba bTndlng, unless in writing and signed by an authorized representative of each party.

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G) OPENGOV
Qoote Number:
ruJ I tln,
Order Form Exp i ntioo:

Subscription Surt D,te:

Sub.,cription End Date:

Casit.Dll)ltn
Bill To/Ship To:

OG-00003583
9/5/2023
10/31/2023
10/4/2023
6/30/2028
City of Ox.nard, CA
300 West Third Street
Oxnard, California 93030
a.mc!SBilling Frequency: Annually in Advance
Payment Tenn.: Net-30 (Thirty) Days
SIDFf'IVARll SLR \'1CE8•
Product/ Service
Cn.dirfor U1T:iu,J Softn,aa (PROP Tt:D) (Ma,,agt!Mt!n.t Rtpo, ing & Stor/ Bu.ilding)
Budgeting & Planning
Budgeting & Planning
Budgeting&: Planning
Budgeting&: Planning
Budgeting & Planning
PROFESSIONAL SERVICES:

Product/ Service
OpenGov Deployment- Prepaid (Upfront)
8::u:tlb!o E:n o ...
10/4/2023 3/3W.025
10/4/2023 6/30/2024
,nnl'il.! 6/30/2025
7/1/2025 6/30/2026
7/1/2026 6/30/2027
7/1/2027 6/30/2028
SWtl;l
10/1/2023
OpenGov Deployment- Time & Materials Billed Upon Completion *Hours will be billed upon completion on a time and materials basis at a rate of $195.00 per hour, estimated at 30 hours 'ffilLw.j;nbJ;,,
ll'illia9Dil
OpeoG11r Inc.

PO BoxHJ40
San Jos CA 95160
UnitaJS:u.cs
l'Rp>nd By: Alex Martinez
En:a.B:J i:!!ir..tl..:.1li .iU.\;J.IJJ
Contrad Term: Prorated+ 48 Months
ContactN2ime: lark Sewell
Annual Subscription Total:
l'nimilua<I m ff' _ bili
\S 16,650.00)
S 109,760.25
$146,347.00
$152,201.00
Sl58,289.00
$164,620.00
See Billing Table
$41,925.00
$5,850.00*
547,775.00
October 4, 2023
July I, 2024
July I, 2025
July I, 2026
July 1, 2027
$135,03525
$146,347.00
Sl52,20I.0O
$158,289.00
$[64,620.00
(Prorated Annual Software Fee+ Professional Services Payment I + Credit) (Annual Software Fee)
Wolcmm ta 0.Pot!OAYI Th 'er fm m:wr """S ilw•• Sa,,',:.,, 1hlr o,J';< f'orni;, In b•tw= OpcuGoY, w., '!filh c ,ri:>qw pb.G .r, .. inoo K 6fl'l r:rn u fJh-d N-1 l] O s:c Jc,,r. 9 J fiO ("Dptt.!k,v"). and you, the CDtity identified above ("Customer"), as of the Effective Date. This Order Form Includes and mcorporales the OpenOov Software 8erv!:,s Agreement; ,igned betwten !Lepri .. , cffec v• J1U1d, l l? os amended ("SSA'? and the applicable Stat<ment of Work ("SOW'? incorporated herein in the event Professional Services are purchased_ The Order Fora,, SSA and SOW shall hereafterbo referred to as the "Agreement''.

Unless othervri.se specified above, fees for the Software Services and Professional Services shall be due and payable, io advance, on the Effective D*. By signing this Agreement, Customer acknowledges that it has reviewed, and agrees to be legally bound by, the OpenGov Software Services Agreement Each party's acceptance of this Agreement is conditional upon the o!ha's acceptance of the terms in the Agreement to the exclusion of all other terms. To.is Order Form shall replace and supersede in its entirety the Order Form signed between the parties effective Jane 3, 2022.

LSignatures on next pageJ
Agreement #32400219
685
IN WITNESS WHEREOF, the parties hereto have executed the Agreement on the date first written above.

CITY OF OXNARD
John C. Zaragoza, Mayor Date
ATTEST:

Rose Chaparro, City Clerk Date
( only if Mayor authorizes)
APPROVED AS TO FORM:

Stephen M. Fischer, City Date
Attorney (always required)
OPEN GOV, INC.

Sam Kramer, VP of Finance
Sean Wani
General Counsel
Date
Date
Agreement #32400219
686
2023 Statement of Work v1 .3

OPENGOV
Statement of Work
City of Oxnard
Creation Date: 09/11/2023
Document Number: PS-04484
Version Number: 4
Created by: Mark Welch
687
Table of Contents

1. Overview and Approach

1.1 . Agreement

2. Statement of Work

2.1. Project Scope

2.2. Facilities and Hours of Coverage

2.3. Key Assumptions

2.4. OpenGov Responsibilities

2.4.1 . Activity 1 - Project Management

2.4.2. Activity 2 - Initialization

2.4.3. Activity 3 - OpenGov Use Cases

2.4.4. Activity 4 - Training

2.5. Your Responsibilities

2.5.1. Your Project Manager

2.6. Completion Criteria

2.7. Estimated Schedule

2.8. Illustrative Project Timelines

2.9. Charges

2.10. Offer Expiration Date
Appendix A: Engagement Charter
A-1: Communication and Escalation Procedure
A-2: Change Order Process
A-3: Deliverable Materials Acceptance Procedure
Appendix B: Implementation Activities
B-1: OpenGov Budgeting & Planning Suite
Appendix C: Technical Requirements
C-1: OpenGov Budgeting & Planning Suite
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1. Overview and Approach

1.1. Agreement
This Statement of Work ("SOW") identifies services that Open Gov, Inc. ("Open Gov'' or"we") will perform for City of Oxnard ("Customer" or "you") pursuant to that order for Professional Services entered into between OpenGov and the Customer ("Order Form") which references the Master Services Agreement or other applicable agreement entered into byth e parties (the "Agreement"). • Customer acknowledges and agrees that this Statement of Work is subject to the confidentiality obligations set forth in the Agreement between OpenGov and Customer. • The Deliverables listed in Appendix Bare the single source of the truth of the deliverables to be provided.
• Customer's use of the Professional Services is governed by the Agreement and not this sow.
• Upon execution of the Order Form or other documentation referencing the SOW, this SOW shall be incorporated by reference into the Agreement.
• In the event of any inconsistency or conflict between the terms and conditions of this SOW and the Agreement, the terms and conditions of this SOW shall govern with respect to the subject matter of this SOW only. Unless otherwise defined herein, capitalized terms used in this SOW shall have the meaning defined in the Agreement. • This SOW may not be modified or amended except in a written agreement signed by a duly authorized representative of each party.
• OpenGov will be deployed as is, Customer has access to all functionality available in the current release.

2. Staten1ent of Work
This SOW is limited to the Implementation of the Open Gov Budgeting & Planning as defined in the OQenGoy Responsibilitl�section of this document. Any additional services or support will be considered out of scope.

2.1. Project Scope
Under this project, OpenGov will deliver cloud based Budgeting & Planning solutions to help the Customer power a more effective and accountable government. OpenGov's estimated charges and schedule are based on performance of the activities listed in the "OpenGov Responsibilities" section below. Deviations that arise during the project will be managed through the procedure described in Appendix A-2: Change Order Process, and may result in adjustments to the Project Scope, Estimated Schedule, Charges and other terms. These adjustments may include charges on a time-and-materials or fixed-fee basis using OpenGov's standard rates in effect from time to time for any resulting additional work or waiting time.

2.2. Facilities and Hours of Coverage
Open Gov will:
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A. Perform the work under this SOW remotely, except for any project-related activity which OpenGov determines would be best performed at your facility in order to complete its responsibilities under this SOW.

B. Provide the Services under this SOW during normal business hours, 8:30 am to 6:00 pm local time, Monday through Friday, except holidays.

2.3. Key Assumptions
The SOW and Open Gov estimates are based on the following key assumptions. Deviations that arise during the proposed project will be managed through the project Change Order Process (see Appendix A-2), and may result in adjustments to the Project Scope, Estimated Schedule, Charges, and other terms.

A. The OpenGov Suites are not customized beyond current capacities based on the latest release of the software.

B. Individual software modules are configured based on discussions between OpenGov and Customer.

C. OpenGov or its authorized independent contractors provide Professional Services to Customer as described in this SOW as agreed to by the parties. □. Budgeting and Planning Suite
i. Customer will provide Budget and Actuals data within two (2) weeks immediately following the kick-off meeting.
ii. Customer's Integration is unidirectional from Tyler Munis into Open Gov. The integrated data will be linked to the Customer'sOpenGov Chart Of Accounts. iii. OpenGov budget proposal configuration will include: up to two hundred (200) department proposals and up to two hundred (200) project proposals.
1v. OpenGov Online Budget Book (OBB) configuration will include:

1. Six (6) Standard OBB templates; up to two hundred (200) department stories pages and up to two hundred (200) project pages from the templates; and up to two (2) reports with report views to use in the 08B.

2.4. OpenGov Responsibilities

2.4.1. Activity 1 - Project Management
Open Gov will provide project management for the OpenGov responsibilities in this SOW.

The purpose of this activity is to provide direction to the Open Gov project personnel and to provide a framework for project planning, communications, reporting, procedural and contractual activity. This activity is composed of the following tasks:

Planning
OpenGov will:

A. review the SOW, contract and project plan with Customer's Project Manager and key stakeholders to ensure alignment and agreed upontimelines; G. maintain project communications through your Project Manager; 2023 Statement of Work v1 .3
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C. establish documentation and procedural standards for deliverable Materials; and D. assist your Project Manager to prepare and maintain the project plan for the performance of this SOW which will include the activities, tasks, assignments, and project milestones.

Project Tracking and Reporting
OpenGov will:

A. review project tasks, schedules, and resources and make changes or additions, as appropriate. Measure and evaluate progress against the project plan with your Project Manager;
B. work with your Project Manager to address and resolve deviations from the project plan;
C. conduct regularly scheduled project status meetings; and D. administer the Project Change Control Procedure with your Project Manager.

Completion Criteria:

This is an on-going activity which will be considered complete at the end of the Services Deliverable Materials:
• Weekly status reports
• Project plan
• Project Charter
• Risk, Action, Issues and Decisions Register(RAID)

2.4.2. Activity 2 - Initialization
Open Gov will provide the following:

A. Customer Entity configuration
B. System Administrators creation
C. Solution Blueprint creation
D. Data Validation strategy confirmation
Completion Criteria:

This activity will be considered complete when:
• Customer Entity is created
• System Administrators have access to Customer Entity
• Solution Blueprint is presented to Customer
Deliverable Materials:
• Solution Blueprint
• Sign-off of Initial Draft Solution Blueprint
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2.4.3. Activity 3 - OpenGov Use Cases
OpenGov will provide the following:

Budget & Planning Use Cases
A. Centralized Operating Budget

8. Multi-Year Workforce Planning
C. Capital Improvement Planning
D. Interactive Online Budget Books
E. Interactive Reporting
F. Integration with Tyler Munis for real-time (daily balances) reporting including Transaction level detail
Completion Criteria:

This activity will be considered complete when:

Budget & Planning Use Cases
,. Chart of Accounts is configured
• Operating Budget proposals are configured
• Capital Budget proposals are configured
• Workforce Plan is configured
• Online Budget Book templates are configured
• Financial integration is configured
• Budget reports are configured
Deliverable Materials:
• Formal sign off document

2.4.4. Activity 4 - Training
Training will be provided in instructor-led virtual sessions unless otherwise specified in Appendix B. For any instructor-led virtual sessions, the class size is recommended to be 10 (ten), for class sizes larger than 10 (ten) it may be necessary to have more than one instructor. At least one training session will be delivered virtually and recorded for future use by City.

Completion Criteria:
• Administrator training is provided
• End User training is provided
Deliverable Materials:
• Formal sign off document

2.5. Your Responsibilities
The completion of the proposed scope of work depends on the full commitment and participation of your management and personnel. The responsibilities listed in this section 2023 Statement of Work v1 .3
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are in addition to those responsibilities specified in the Agreement and are to be provided at no charge to Open Gov. OpenGov's performance is predicated upon the following responsibilities being managed and fulfilled by you. Delays in performance of these responsibilities may result in delay of the completion of the project and will be handled in accordance with Appendix A-1: Communication and Escalation Procedure.

2.5.1. Your Project Manager
Prior to the start of this project, you will designate a person called your Project Manager who will be the focal point for OpenGov communications relative to this project and will have the authority to act on behalf of you in all matters regarding this project.

Your Project Manager's responsibilities include the following:

A. manage your personnel and responsibilities for this project (for example: ensure personnel complete any self-paced training sessions, configuration, validation or user acceptance testing};
B. serve as the interface between Open Gov and all your departments participating in the project;
C. administer the Project Change Control Procedure with the Project Manager; D. participate in project status meetings;
E. obtain and provide information, data, and decisions within five(5} business days of OpenGov's request unless you and OpenGov agree in writing to a different response time;
resolve deviations from the estimated schedule, which may be caused by you; G- help resolve project issues and escalate issues within your organization, as necessary; and
H. Work with Open Gov Project Manager to ensure the project plan for the performance of this SOW which will include the activities, tasks, assignments, milestones and estimates are completed by Customer's employees.

2.6. Completion Criteria
Open Gov will have fulfilled its obligations under this SOW when any of the following first occurs:

A. OpenGov accomplishes the activities set forth in "OpenGov responsibilities" section and delivers the Materials listed, if any; or
B. The End date is reached

2.7. Estimated Schedule
OpenGov will schedule resources for this project upon signature of the order form. Unless specifically noted, the Open Gov assigned project manager will work with Customer Project Manager to develop the project schedule for all requested deliverables under this SOW. 2023 Statement of Work v1 .3
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OpenGov reserves the right to adjust the schedule based on the availability of OpenGov resources and/or Customer resources, and the timeliness of deliverables provided by the Customer.

The Services are currently estimated to start within two (2) weeks but no later than four (4) weeks from signatures and have an estimated end date of eleven (11} months following signatures ("End Date") or on other dates mutually agreed to between you and OpenGov.

2.8. Illustrative Project Timelines
The City and OpenGov have discussed and agreed to the following project timeline. The project plan below is illustrative and may adjust based on the needs of the City, to accommodate vacations, schedules, or required go-live dates.

Budgetln9 & Planning Suite Illustrative Tlmeline
l'inancial Integration
Chart of Accounts
Revi w .;nd Finalize Opera:ing Budg t
Mid Yesr Budge, in Brief
Workforce Planning
Capital Budg t
'Online Budg t Book
Budge1 and Pl:;nning Suit,; Budg t End Us;r Train,ng
Hyp€rcare
Customer is responsible for amnding the kics off of each phase, provi-:ling any Mcessary data for e;ch phase. participating in wor .ing session s dur,119 mlve phases. and signing ofi on deliverables at the end of each pl\ase.

2.9. Charges
The Services will be conducted on a Fixed Price basis. This fixed price is exclusive of any travel and living expenses and other reasonable expenses incurred in connection with the Services. All charges are exclusive of any applicable taxes.

OpenGov shall receive written approval in advance of any visit to Customer to which they intend to recover expenses.

2.10. Offer Expiration Date
This offer will expire on 10/31/2023 unless extended by Open Gov in writing. 2023 Statement of Work v1 .3
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Appendix A: Engagement Charter
A-1: Communication and Escalation Procedure
Active engagement throughout the implementation process is the foundation of a successful deployment. To help assess progress, address questions, and minimize risk during the course of deployment both parties agree to the following:
• Regular communication aligned to the agreed upon project plan and timing. o OpenGov expects our customers to raise questions or concerns as soon as they arise. Open Gov will do the same, in order to be able to address items when known. • Executive involvement
o Executives may be called upon to clarify expectations and/or resolve confusion. o Executives may be needed to steer strategic items to maximize the value through the deployment.
• Escalation Process:
o OpenGov and Customer agree to raise concerns andfo llowthe escalation process, resource responsibility, and documentation in the event an escalation is needed to support issues raised
• Identification of an issue impeding deployment progress, outcome or capturing the value proposition, that is not acceptable. • Customer or OpenGov Project Manager summarizes the problem statement and impasse.
• Customer and OpenGov Project Managers jointly will outline solution, acceptance or schedule Executive review.
• Resolution will be documented and signed off following Executive review. • Phase Sign-Off
o OpenGov requests sign-offs at various stages during the implementation of the project. Once the Customer has signed-off, any additional changes requested by Customer on that stage will require a paid change order for additional hours for OpenGov to complete the requested changes.

A-2: Change Order Process
This SOW and related efforts are based on the information provided and gathered by OpenGov.

Customers acknowledge that changes to the scope may require additional effort or time, resulting in additional cost. Any change to scope must be agreed to in writing or email, by both Customer and OpenGov, and documented as such via a:
• Change Order- Work that is added to or deleted from the original scope of this SOW.

Depending on the magnitude of the change, it may or may not alter the original contract amount or completion date and be paid for by Customer. Changes might include:
o Timeline for completion
o Sign off process
o Cost of change and Invoice timing
o Amending the SOW to correct an error.
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o Extension of work as the complexity identified exceeds what was expected by Customer or OpenGov.
o Change in type of Open Gov resources to support the SOW.

A-3: Deliverable Materials Acceptance Procedure
Deliverable Materials as defined herein will be reviewed and accepted in accordance with the following procedure:
• The deliverable Material will be submitted to your Project Manager. • Your Project Manager will have decision authority to approve/reject all project Criteria, Phase Acceptance and Engagement Acceptance.
• Within five (5) business days of receipt, your Project Manager will either accept the deliverable Material or provide OpenGov's Project Manager a written list of requested revisions. If Open Gov receives no response from your Project Manager within five (5) business days, then the deliverable Material will be deemed accepted. The process will repeat for the requested revisions until acceptance.
• All acceptance milestones and associated review periods will be tracked on the project plan.
• Both Open Gov and Customer recognize that failure to complete tasks and respond to open issues may have a negative impact on the project.
• For any tasks not yet complete, OpenGov and/or Customerwill provide sufficient resources to expedite completion of tasks to prevent negatively impacting the project. • Any conflict arising from the deliverable Materials Acceptance Procedure will be addressed as specified in the Escalation Procedure set forth in Append ix A-1. As set forth in the "Customer Delays" provision of the Agreement, if there are extended delays {greater than 10 business days) in Customer's response for requested information or deliverable; OpenGov may opt to put the project on an "On Hold" status. After the Customer has fulfilled its obligations, Professional Services can be resumed and the project will be taken off the "On-Hold" status.
• Putting a project "on Hold" may have several ramifications including, but not restricted, to the following:
o Professional Services to the customer could be stopped; o Delay to any agreed timelines; or
o Not having the same Professional Services team assigned. 2023 Statement of Work v1 .3
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Appendix B: Implementation Activities
B-1: OpenGov Budgeting & Planning Suite
Instance Creation
,I Budgeting & Planning Suite
Description OpenGov Responsibilities Customer Responsibilities Provisioning [ Open Gov will: Customer will:

Reporting & I • Open Gov will provision .. , Confirm access to entity and Transparency Customer's OpenGov entity and modules.

Platform verify Customer has access to
all purchased modules.

Technical Project Review
Description OpenGov Responsibilities Customer Responsibilities Technical Project Open Gov will: Customer will:

Review • Provide up to one (1) one-hour • Identify relevant participants working sessions at the for attendance.
beginning of the project to: • Confirm deliverables .
0 Review deliverables • Gather and provide relevant
0 Review technical data for the project.
requirements
0 Provide documentation
on requirements and
processes
OpenGov Assumptions:
• Customer will provide relevant
data within two (2) weeks
immediately following the
kick-off meeting.
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Chart of Accounts Configuration
i Description OpenGov Responsibilities Customer Responsibilities Chart of Accounts OpenGov will: Customer will:
(COA) • Review configured COA and • Provide current COA and uploaded data and provide transactional data.
training to Customer on how • Validate and provide sign off to: I on COA. I 0 Manage new codes • Maintain the COA following 0 Edit COA configuration.

I 0 Create Masks
h
Integration Configuration
I Description OpenGov Responsibilities Customer Responsibilities Financial OpenGov will: Customer will:

Integration • Installation of Agent and • Provide an IT resource to Database View Deployment or assist the project team in the Set up a SFTP and Sample File initial set-up.

Format. • Provide assistance to
• Integrate the following understand source system
functionalities: specific customizations and
0 Actuals and Budget configurations when building
(Revenue and the data extract.

Expenses} • If OpenGov is unable to access
• Extract, transform (when the data per requirements,
required} and load the data provide .csv data files via • Build Reports for the required Open Gov SFTP Location. functionalities • Any charges for the data from
• Validate the historical data and ERP system will be the current year data based on the customer responsibility.

Customer provided summary • Broker OpenGov's access to
report. Customer's source
• Schedule the current year data accounting data if hosted by load any third vendor.
• Monitor the data load • Provide a summary export
data to validate against.

I OpenGov assumptions: • Validate and provide sign off
• Integration is unidirectional on the integrated data and from the Customer's Tyler reports.

Munis into OpenGov. • Changes to the underlying
• The data will be linked to the data after project closure will Customer's COA. be responsibility of the
customer to update.
• Maintenance of the
integration file on an ongoing
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basis is the responsibility of
the customer.

Operating Budget Configuration
Description OpenGov Responsibilities Customer Responsibilities Operating Budget OpenGov will: Customer will: I
• Configure up to two (2) Proofs • Provide current budget. of Concept (POC). • Validate Proof of Concept
• Configure one (1) Budget prior to OpenGov building out instance, once POC is Budget Proposals and
validated. Worksheets.
•• Configure and upload • Validate and provide sign off Customer's base budget files on Budget Proposals and
into OpenGov budget Worksheets.
instances.
• Configure OpenGov Budget
Proposals and Worksheets for
up to two-hundred (200)
Departments in the base
budget file based on the agreed
upon structure.
• Review configured OpenGov
Budget and provide training to
Customer on how to:
0 Create new Proposals
and Worksheets
Q Manage Budgets
Operating Budget OpenGov will: Customer will:

Community • Configure one (1) standard • Provide logo and branding Feedback Topic budget topic in Community guidelines.

Feedback. • Validate and provide signoff
• Review configured OpenGov on the standard budget
Topic and provide training to topic.

Customer on how to: .. Update the standard budget
(;J Create new topics topic with Customer relevant
0 Manage topics information.
0 Set Topics to Public and
Closed.

Operating Budget Open Gov will: Customer will:

Story • Configure one (1) standard • Provide logo and branding budget Story template. guidelines.
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I
• Review configured OpenGov • Validate and provide signoff Story and provide training to on Operating Budget Story Customer on how to: template. I 0 Create new Stories • Update standard budget 0 Manage Stories Story with Customer relevant
0 Publish Stories information
Capital Budget Configuration
Description OpenGov Responsibilities Customer Responsibilities Capital Budget OpenGov will: Customer will:
,. Configure up to one (1) Proofs • Provide current budget. of Concept (POC} • Validate Proof of Concept '
., Configure one (1} Budget prior to OpenGov building out instance, once POC is validated proposals and worksheets • Configure and upload I • Validate and provide signoff I Customer's base budget files on Budget Proposals. into OpenGov budget
instances.
• Configure proposals and
worksheets for up to two
hundred (200} Capital Projects
in the base budget file based on
the agreed upon structure I
• Review configured OpenGov
Budget and provide training to
Customer on how to:
0 Create new Proposals
and Worksheets
0 Manage Budgets I
Capital Budget Open Gov will: Customer will:

Story ., Configure one (1} standard • Provide logo and branding capital budget Story template. guidelines.
• Review configured OpenGov • Validate and provide signoff Story and provide training to on Capital Budget Story
Customer on how to: template.
0 Create new Stories Update standard budget
0 Manage Stories Story with Customer relevant
0 Publish Stories information
'
Workforce Planning Configuration
Description OpenGov Responsibilities Customer Responsibilities 2023 Statement of Work v1 .3
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Workforce OpenGov will: Customer will:

Planning • Provide cost elements based on • Provide Position calculations Customer's existing personnel and tables.
forecast to workforce ,. Populate the Position
document as per OpenGov's Template and upload the
best practices. completed template into
• Review configured OpenGov Open Gov.

Workforce Plan and provide • Validate and provide signoff training to Customer on how to: on the Workforce Plan
0 Create Cost Elements calculations.

IJ Populate and upload the • Maintain the Workforce Plan Position Template and data once configured.

Budget and Planning Suite Reporting Configuration
Budget and OpenGov will: Customer will:

Planning Suite • Set up one (1) export and • Validate and provide sign-off Reporting Dataset View to enable of Reports.

OpenGov Budget Reports for • Maintain the Reports once
the Operating and Capital configured.

Budget(s). • Map OpenGov Budget export
• Configure up three (3) to Customer ERP import
standard reports using the format.
customer's integrated
financial data:
0 Annual
0 Budget to Actuals
0 Transactions
• Configure up to four(4)
Operating Budget Reports
using OpenGov budget data:
0 Milestones
0 Development
0 Details
0 Categories*
• Configure up to four(4) Capital
Budget Reports using OpenGov
budget data:
0 Development
0 Details
0 Categories*
0 Capital Plan
• Review configured OpenGov
Reports and provide training
Customer on how to:
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Export Budget Data for !
use in OpenGov
Reports.
0 Create new Reports
(l Manage Reports
0 Share Reports
*Budget Categories report is only
available to customers using a
zero-based budget.

Online Budget Book Configuration
Description OpenGov Responsibilities Customer Responsibilities Online Budget OpenGov will: Customer will:

Book(OBB) • Based on best practices, build • Provide logo and branding out the look and feel of six(6) colors to Open Gov.

Standard OBB Templates: • Sign off on OBB Templates
0 Home Page prior to OBB Story Shell
D Generic (multi-use} Configuration.
0 Operating • Validate and sign off on OBB
0 Department Department and Project
0 Capital Story Shells.
0 Capital Project • Complete Department and
• Create up to two (2) 088 Project Story Shells by
Reports using OpenGov Budget adding Customer content
data and Report Views to use including:

I in Department and Project OBB 0 Narrative
Story Shells. 0 Images
• Create Department and 0 External Data
Project 088 Story Shells from • Create remaining 088
088 Templates for up to two Stories from 0B8 Templates
hundred (200} Departments for each section of the Table I '
and up to two hundred (200) of Contents and add
Projects and add OpenGov Customer content including:

Report Views to Department 0 Narrative
and Project Story Shells. a Images
• Provide up to ten (10) one-hour 0 External Data
working sessions to answer • Create any additional Reports Customer questions on 088 and Report Views needed to
Configuration. add to 088.
• Attend working sessions to
get answers on 088
questions.
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Working Sessions and Trainings
Description OpenGov Responsibilities
Budgeting & OpenGov will:

Planning Working • Per the agreed upon Project
Sessions Plan, schedule working sessions
I with Customer's System
Administrators to:
0 Review configurations;
0 Provide training on
system functionality;
0 Gain feedback; and
0 Answer questions
regarding configured
svstem functionality.

Reporting & OpenGov will:

Transparency • Provide training to Customer
Administrator System Administrators on how
Training to:
0 Maintain the Chart of
Accounts
0 Upload and manage
data for reporting
Q Create and share
Reports, Dashboards,
Stories, and Topics.
2023 Statement of Work v1 .3
• Make Stories public and
Publish OBB.

Customer Responsibilities
Customer will:
• Per the agreed upon Project
Plan, attend working sessions
to:
0 Understand
configurations;
0 Gain training on system
functionality;
0 Give feedback; and
□ Ask questions
regarding configured
svstem functionality
Customer will:
• Identify relevant participants
and attend scheduled
trainings.

I
703
Budgeting & OpenGov will: Customer will:

Workforce • Provide training to Customer • Identify relevant participants Administrator System Administrators on how and attend scheduled Training to: trainings.
0 Create and manage
Budgets
Q Prepare to set up Next
Year's Budget
0 Create and manage
Workforce Plans
including Cost
Elements and Position
Upload Templates
0 Export Budget Data for
use in OpenGov
Reports.

Online Budget OpenGov will: Customer will:

Book/ • Provide one (1) 60- Minute • Identify relevant participants Budget-in-Brief System Training designed for and attend scheduled Administrator OBB Administrators on how to: trainings.

Training 0 Use and copy OBB
Templates
0 Add Reports Views to
Stories
0 Add Customer content
including: narrative,
images, and external
data to Stories
0 Publish Stories
0 Update and maintain
Stories. '
Virtual Budget OpenGov will: Customer will:

End-User Training • Provide two (2), 60-Minute • Identify relevant participants training session(s} to and attend scheduled
Customer's Internal Users on trainings.
how to:
0 Navigate Opengov
Budgets and Reports
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Appendix C: Technical Requirements
C-1: OpenGov Budgeting & Planning Suite
Budgeting & Planning Suite
Description Technical Requirements
Chart of Accounts I • Flat file
• .csv, .xis, .xlsx with headers
• Active Accounts and Accounts with activity in the years of data I being loaded into OpenGov.

Financial Data Files • Flat file
(Transactional • .csv, .xis, .xlsx with headers
Export) • 3-5 Years of Data
Financial Data Files ., PDF export
(Summary Revenue
and Expense
Export)
Current Budget • Flat file
• .csv, .xis, .xlsx with headers
• Operating Budget
• Capital Budget
Personnel • PDF, Word, csv, .xis, .xlsx with headers
Calculations and
Tables
Workflow • PDF, Word, .csv, .xis, .xlsx with headers
Management
Non-Financial Data • Flat file
Files • .csv, .xis, .xlsx with headers
Logo Image • .jpg or .png format
• Transparent
Branding • Hex codes
guidelines
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Budget Software
Acquisition and Implementation
October 3, 2023
Presented by:

Javier Chagoyen-Lázaro, City of Oxnard
Chief Financial Officer
706
Recommendation 2
That the City Council:

1. Approve and authorize the City Manager to execute a five year agreement with OpenGov, Inc. for OpenGov Budgeting & Planning software as well as OpenGov Reporting & Transparency software for a not to exceed amount of $771,493; and

2. Approve a budget appropriation of $60,110 in the Fiscal Year 2023-24 Information Technology Fund, from available fund balance.
707
Background 3
October 2019: ERP Contract Award to Tyler Technologies
October 2022: ERP Core Financials go-live:

Implementation of Core Financials
March 2023: City Council ERP annual report: Tyler Budget functionality does not meet City needs
Sep/Oct 2023: Proposed Contract Award to OpenGov for Budget and Planning Software Implementation
Winter 2023: Budget and Planning Software estimated go live to support FY 2024/25 Budget preparation
• Core Financials
• Human Capital Management
• Time and Attendance
• Community Development
• Asset Maintenance
• Utility Billing
• Purchasing
• Accounts Payable
• Accounts Receivable
• Project Management
• Financial Reporting
• Cashiering
• Automatic Controls
• Workflow Approval
• Fixed Asset Accounting
708
Why the City needs a budget software? 4
Consolidated
budget proposals
Operating
Expenses &
Capital
Improvements
Position
Control &
Employment
Costs
Revenues
Allocation by
fund and
programs
Allocation
by
Departments
Internal
Services
Funds
• 74 Funds
• 80 Sub-funds
• 10 Functions
• 17 Departments
• 33 Divisions
• 316 Object Codes
709
Vendor evaluations 5
Criteria
Efficient Operating and
Personnel Budgeting, including
Approval and Version Control
Budget Book / Online Budget
Preparation and
Presentation (GFOA eligible)
Multi Year Forecasting
Capability
Integration with ERP Financials
Regular Efficient Budget
Monitoring and Reporting
Implementation
• Position related costs, consistent format for online
submission, workflows to approve operating and capital
project budget requests
• Expand access to budget information online, nationally recognized budget best practices, transparency and trust from the Community
• Ability to improve the long term financial analysis, supporting strategic plan, and evaluate and inform the impact of decisions made today, recognized future needs and prepare the City to address those needs, with visibility to the Community.
• Ability to automate presentation of real time data to compare with existing budget
• Ability to provide City Council and operating departments with periodic budget reports, identifying budget surpluses and budget shortfalls to reallocate resources during the fiscal year to better serve the Community.
• Faster implementation
Description
710
Vendor evaluations 6
Tyler
Munis ClearGov OpenGov
Efficient Operating and
Personnel Budgeting, including
Approval and Version Control
✔ ✔
Budget Book / Online Budget
Preparation and
Presentation (GFOA eligible)
✔ ✔
Multi Year Forecasting
Capability ✔ ✔
Integration with ERP Financials ✔ ✔
Regular Efficient Budget
Monitoring and Reporting ✔
Speedy Implementation ✔
711
C ost proposal comparison 7
Cost Proposals ClearGov OpenGov
One Time Implementation
(Incl.Training/Travel/Contingency) $17,550 $62,775
Year 1 License (FY24) 83,005 87,260
Year 2 License (FY25) 85,495 146,347
Year 3 License (FY26) 88,060 152,201
Year 4 License (FY27) 93,344 158,289
Year 5 License (FY28) 98,944 164,620
Total Agreement $ 466,398 $ 771,493
Annual Average $93,280 $154,298
712
• Multiyear Forecasting Capabilities
• References contacted using forecasting
• Integration with ERP financials:
• OpenGov was the most integrated budget solution
• Real data that can be compare against the budget
• Regular Efficient Budget Monitoring and Reporting
• Allow departments to monitor budget performance in real time • Faster recognition of budget surplus or budget shortages to reallocate resources to better serve the Community
• Provide periodic repots to City Council
• Support decision making during budget preparation and budget execution • Faster Implementation
• Leverage staff efforts used to implement the transparency website • Drive Transparency and trust to Increase Community Engagement Why OpenGov ? 8
713
Recommendation 9
Totals may not add due to rounding
That the City Council:

2. Approve a budget appropriation of $60,110 in the Fiscal Year 2023-24 Information Technology Fund, from available fund balance. 714
10 Q uestions / Discussion
715

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.2
DATE: October 3, 2023
TO: City Council
FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected] SUBJECT: Public Project Agreement 32400153 with Toro Enterprises, Inc. for Arterial Street Resurfacing - Hueneme Road Improvement Project, Specification No. PW 23-111. (10 minutes)

RECOMMENDATION
That the City Council approve and authorize:

1. A total of $2,745,575.80 in Project funds for the Arterial Street Resurfacing Hueneme Road Street Improvement Project, Specification No. PW 23-111;

2. The Mayor to Execute an Agreement with Toro Enterprises, Inc., in the amount of $2,287,979.80 for the Project;

3. A Project contingency amount of $228,798 (10%) with Toro Enterprises, Inc. for a total not to exceed value of $228,798 for the Project;

4. A Project allocation amount of $228,798 (10%) for engineering, inspection, survey and project management (EISPM) for the Project; and

5. A project budget appropriation transfer in the amount of $975,066 from Ormond Beach Neighborhood Street Resurfacing Project C2109 to Arterial Street Resurfacing Project C2205 within the TAB HERO Fund (315). (This item did not originate in Committee as this is a capital improvement project specifically listed in the City's Capital Improvement Program budget, which was previously approved by the City Council.) Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/jy7RhnGWSDI

BACKGROUND
The Arterial Street Resurfacing Project is part of an ongoing Capital Improvement Program (CIP) project to address multiple locations throughout the City over multiple years. This current bid package is for Hueneme road from Edison Drive to J Street. The median has reached its life-cycle and requires corrective work. The majority of this section of road will be treated with microsurfacing to extend the pavement life and, where it is necessary, the road will be resurfaced.

Originally, the resurfacing of Hueneme road was part of the Ormond Beach Neighborhood Street Resurfacing project.

That project was brought to Council on January 3, 2023 where Public Works recommended that Council authorize the reallocation of all remaining 2006 Ormond Beach Tax Allocation Bond (Tab) Proceeds for the purpose of completing the Hueneme Road Work related to the Ormond Beach neighborhood Street Resurfacing project. Public Works reported in that staff report that the Hueneme Road work had not been completed due to needing to replace storm drains and cast iron pipes first and there was not enough funding to complete the street and median work. The balance of the project was constructed by Granite Construction Company under the On-Call Local and Collector Street Improvement project, PW 21-87. The Notice to Proceed was issued on June 27, 2022 and the work completed September 26, 2022.

The storm drain and cast iron pipe replacement work was part of PW21-98 Water Cast Iron Pipe Replacement project at Various Locations and Storm Drainage Improvement Project at Hueneme Road. This work was Awarded by Council to 716
Toro Enterprises Inc. on December 21, 2021. Notice to proceed was issued on April 4, 2022 and Notice of Completion was recorded on September 26, 2022. The City had two (2) projects with two (2) different contractors in the same place and would cause unnecessary conflicts and disruption so it was decided to postpone the resurfacing of Hueneme road to this fiscal year.

Now that the utility work under Hueneme Road is complete, Public Works looks to complete resurfacing of Hueneme road as planned, utilizing the remaining Tab HERO fund balance in project C2109 - Ormond Beach Neighborhood Street Resurfacing Project and with General Funds in project C2205 - Arterial Street Resurfacing Project.

When the City Council originally approved the FY 2022-2027 Capital Improvement Program budget at the May 3, 2022 City Council meeting, the locations planned for FY 2022-23 and FY 2023-24 were to be partially funded by Bonds (up to $13M). However, due to active litigation, an alternate funding source (one-time Measure O funding) was approved by the City Council. However, the alternate funding source was not equal to the originally proposed bond funding.

Capital Improvement Program (CIP) Reference:

Project No. C2205 – Arterial Street Resurfacing Project, Specification No. PW 23-111 - CIP 2022-2027 - Adopted May 3, 2022 – Page 47.

Project No. C2109 – Ormond Beach Neighborhood Street Resurfacing Project - CIP 2022-2027 - Adopted May 3, 2022 –

Page 63 ends

Oxnard City CouncilOctober 3, 2023

Oxnard City Council
October 3, 2023