Oxnard City Council
July 2, 2024

ATTACHMENT A TO COUNTY-CITY ANIMAL SERVICES AGREEMENT

COUNTY OF VENTURA

AND

CITY OF OXNARD

FY 2024/25 SERVICE LEVEL REQUEST

PART ONE: AVAILABLE SERVICES AND APPLICABLE BILLING

RATES AND CREDITS

A. Animal Care Services
At the election of the City, the County shall provide the following services:

1. Shelter Services

As may be required, the County shall provide animal care services to the City for all animals originating within the boundaries of the City (whether picked up in the City or dropped off at the County’s animal shelter) when there is a stray/abandoned animal , adoption return, confiscation, cruelty abuse or neglect investigation, or injured wildlife.

The County will accept animals surrendered by their owner s dependent upon shelter capacity. For animals originating in the City and impounded, the County shall provide the following animal care services: sheltering, boarding, animal adoptions, foster care coordination, veterinary care and treatment, bite quarantine, euthanasia services, and disposal of de ceased animals. Impounded animals will be vaccinated and p rovided necessary care, food and shelter in accordance with the provisions of state law. The animal’s picture will be posted on the Ventura County Animal Services Division’s (“Animal Services”) website as soon as practicable to assist the City’s residents in reclaiming a missing pet. The County will also provide, based upon availability of funding and resources, owner requested euthanasia, TNR (Trap, Neuter, Return) surgeries for community cats, and Pet Retention programming. These services will not result in the animal being impounded to the shelter. The County, in its sole and exclusive discretion, shall determine the public and non-public hours of operation and the staffing of the County animal shelters.

The owner or person entitled to the custody of any animal originating with in the boundaries of the City and impounded at a County animal shelter can redeem such 306
City of Oxnard

animal by paying applicable fees according to the rates and fees approved by the County Board of Supervisors accruing up to the time of such redemption.

The City shall be charged for its proportion of the total County animal care service costs incurred during the fiscal year identified above as set forth below. The County shall bill the City on a quarterly basis for animal care services based on a weighted three (3) calendar year average of the City’s pro rata animal intake percentage, as follows:

The three (3) year weighted average will be calculated so that fifty percent (50%) of the rate is based on the City’s previous calendar year pro rata animal intake percentage relative to the usage by other cities and unincorporated areas of Ventura County, twenty-five percent (25%) of the rate is based on the City’s pro rata animal intake percentage from two (2) years prior and twenty-five percent (25%) of the rate is based on the City’s pro rata animal intake percentage from three (3) years prior, illustrated as follows:

Example:

Hypothetical animal care budget: $6,027,354
Camarillo: (10.4% * .50) + (9.9% * .25) + (10.4% * .25) = 10.3% Future year cost = 10.3% of $6,027,354 = $620,817
Payments of $155,204 made quarterly which will be reduced by any licensing revenue

2018 INTAKE 2017 INTAKE 2016 INTAKE FUTURE YEAR WEIGHTED AVG Camarillo 1174 10.4% 1223 9.9% 1109 10.4% 10.3%
Fillmore 198 1.7% 320 2.6% 192 1.8% 2.0%
Moorpark 283 2.5% 245 2.0% 321 3.0% 2.5%
Ojai 44 0.4% 109 0.9% 50 0.5% 0.5%
Oxnard 4112 36.3% 4196 34.1% 3947 37.2% 36.0%
Port Hueneme 409 3.6% 432 3.5% 470 4.4% 3.8%
Simi Valley 1360 12.0% 1363 11.1% 1306 12.3% 11.8%
Ventura 1249 11.0% 1555 12.6% 1253 11.8% 11.6%
County 2494 22.0% 2864 23.3% 1971 18.5% 21.5%
Total Intake 11323 100.0% 12307 100.0% 10619 100.0% 100.0% 307
City of Oxnard

The animal care budget will be allocated among the participating cities and the County based on the weighted three (3) calendar year animal intake percentage formula described above. The County’s animal care budget shall follow the following three (3) year fixed-rate schedule:

$6,741,010.13 for fiscal year 2022-2023 (contract year 1) $7,078,060.63 for fiscal year 2023-2024 (contract year 2) $7,431,963.67 for fiscal year 2024-2025 (contract year 3)

In addition to the animal care formula charged to the participating cities, in the event of any animal intake at a County animal shelter originating from the City due to any law enforcement request, pending court case (including, but not limited to, a criminal case, a petition for writ of mandate under Code of Civil Procedure section 1085 or 1094.5, and a petition for hearing regarding whether a dog is potentially dangerous or vicious under Food and Agriculture Code section 31621, or related provisions of City Ordinance), or a court stay, which results in a County shelter stay of more than fifteen (15) days, the County shall also charge the City for animal care services according to the rates and fees approved by the County Board of Supervisors for each day that each such animal receives animal care services, and any fees have not been paid by the dog owner within 30 days of the County’s invoice for services being mailed to the dog owner.

2. Petitions for Hearing to Determine Dogs to be Potentially Dangerous or Vicious

For any dog impounded to the shelter, the Animal Services Director may bring petitions for hearing to determine dogs residing within the jurisdictional limits of the City to be potentially dangerous or vicious under state law and/or City Ordinance Code. In connection with such petitions, the City shall pay the County according to the rates and fees approved by the County Board of Supervisors for County employee time expended (and including but not limited to, the attendance at hearing of County employees; legal services performed by the Office of County Counsel; and any services pr ovided by an administrative hearing officer ). If the County retains the services of an administrative hearing officer who is not a County employee, the City agrees to reimburse the County at the administrative hearing officer’s customary hourly rate. If t he dog owner appeals any determination that a dog is potentially dangerous or vicious, the City shall pay the County according to the rates and fees approved by the County Board of Supervisors for the attendance at the appeal hearing of County employees an d the legal services performed by the Office of County Counsel in connection with such an appeal.

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3. Rabies Suppression Record Management
The County shall provide the City with rabies control activity reporting as required by State Law.

B. Field Services

At the election of the City, the County shall provide the City with the following field services consistent with County Ordinance and State Law.

For City Ordinance Code provisions that are consistent with County Ordinance Code and State law, animal control officers may issue citations (administrative or notice to appear) for violations observed by animal control officers while in the field (and including, but not limited to, citations issued for: failure to license, barking dog nuisance, failure to vaccinate, violation of leash laws, violation of mandatory spay /neuter, violation of animal nuisance orders, and breeding of animals without required permits) . The City will be solely responsible for collection of the citation amounts and processing of any administrative appeals from these citations issued by animal control officers in the field except for barking dog nuisance citations which may be handled by the County. The County will not be responsible for collections or processing administrative appeal s from citations issued in the field and/or citations in which the animal owner is provided notice to appear in court except for barking dog nuisance citations which may be handled by the County.

The County will provide, consistent with County Ordinance and State Law, response and investigation of reported animal bite and intimate contact cases to establish that there is compliance with state -mandated quarantine procedures. This includes a follow -up to verify the health of the animal after quarantine. Shelter quarantine will be at the discretion of the County.

The County shall charge the City according to the rates and fees approved by the County Board of Supervisors for County employee time expended in providing field services. The City shall identify a budgeted amount for field services per fiscal year , as well as the average budgeted level of hours of service that the City authorizes the County to provide per week. The County shall notify the City in writing on a quarterly basis regarding actual hours expended for field services to the City, to enable the City to make the determination of whether the City wishes to authorize in writing a higher budgeted annual amount for field servi ces that are not state -mandated. The County will provide the City state - mandated field services, and the City agrees to pay the County’s costs for all state- mandated field services, whether or not the City’s budgeted amount or hours for field services have been exceeded. The County shall be under no obligation to provide the City with any non-state-mandated field services in excess of the City’s budgeted cost and hours, in the absence of prior written City authorization to do so.

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The County will issue barking dog citations to owners of d ogs residing within the jurisdictional limits of the City upon the required showing being made under City ordinance regarding the existence of a barking nuisance. The County shall charge the City according to the rates and fees approved by the County Boar d of Supervisors for County employee time expended in reviewing and responding to complaints regarding barking dog nuisances in the jurisdictional limits of the City, regardless of whether a barking nuisance citation is ultimately issued. Once a citation is issued, the dog owner will be responsible for paying the County’s standard fee for any administrative review of a citation, as well as paying any required hearing deposit to request an administrative hearing to contest the citation, unless the dog owner establishes to the County the dog owner’s financial inability to pay, in which case, the City shall reimburse the County according to the rates and fees approved by the County Board of Supervisors for County employees providing services based on the time expended per hearing; and if the County retains the services of an administrative hearing officer who is not a County employee, the City agrees to reimburse the County for hearing officer services rendered at the administrative hearing officer’s customary hourly rate.

In the event the City declines to have the County perform field services and transports an animal the shelter for care, the City shall be responsible for:

(i) Scanning animals for an existing microchip and making all efforts to reunite a lost animal with its owner based on any microchip information prior to transporting that animal to a County shelter;
(ii) Making all efforts to use information available from a ny animal’s personal ID tag or a pet license to reunite a lost animal with its owner pri or to transporting that animal to a County shelter;
(iii) Vaccinating an animal with current standard vaccinations provided by Animal Services after an animal has been transported to a County shelter ; and
(iv) Taking a digital photograph of an animal and loading the digital photograph and other pertinent animal information onto Animal Services’ computer information system for tracking animals subject to impoundment after an animal has been transported to a County shelter.

C. Administrative Services

1. Animal License Processing per License

At the election of the City, the County and/or the County’s vendor shall provide the City with animal license processing services at the annual fiscal year cost of six dollars ($6.00) per applicable cat or dog license for each animal within the boundaries of the City. The County and/or the County’s vendor shall mail license renewal notices to the animal owner of record; and when the renewal and payment 310
City of Oxnard

are received, the County will process licenses. If the County and/or the County’s vendor provides online web-licensing, it shall provide such web -licensing at no additional cost to the City. Licenses will be required before the County will release an animal to a resident of the City. The City animal license fees that the County and/or the County’s vendor collects (less the amount of the County’s license processing fee of six dollars ($6.00)) will be credited to the City quarterly in arrears against the amount that the City owes the County under the pa rties’ animal services agreement.

2. Automated Administrative Citation Processing

At the election of the City, and consistent with City Ordinance Code provisions, the County and/or the County’s vendor shall provide the City with an automated citation service for citations related to licensing, vaccination, (and , if applicable, mandatory spay/neuter) issued to animal owners within the boundaries of the City.

If the County reaches a determinatio n, in its sole and exclusive discretion , that it no longer desires to provide an automated citation service to the City (either directly by the County or through the County’s vendor) , the County shall provide the City wi th sixty (60) days’ prior written notice before ceasing to provide such services.

The County and/or the County’s vendor will provide the following automated citation processing service to the City contingent upon the City’s reimbursement of actual County costs incurred, and including, but not limited to:

a. actual costs charged to the County by the County’s General Services Agency for mailing and processing of citations and the cost of one (1) hour per month for the services of a Field Services Manager /Citations Clerk):
generate auto citations in Chameleon software; send files to the General Services Agency for processing; receive and review auto citation files from the General Services Agency to ensure accuracy; send reviewed and completed files to the General Services Agency for processing and mailing to animal own ers; receive and store finalized PDF file from the Genera l Services Agency; generate email notification to the City’s staff with PDF files for further collection and appeals; receive, through a Supervising Animal Control Officer , communication from City st aff regarding citizen appeals when necessary; and receive updates from the City regarding customer data to be updated, with the County updating data in Chameleon software; or
b. actual costs charged to the County by the County’s vendor for mailing and processing of citations and issuing any required licenses; generating email notifications to the City’s staff with PDF files for further collections and appeals; receiving communication from City staff regarding citizen appeals 311
City of Oxnard

when necessary; and receiving updates from the City regarding customer data to be updated.

To the extent that such services are not provided by the County and/or the County’s vendor, the County will not be responsible for collections or processing administrative appeals from automated citations. The City will be solely responsible for collections and for processing any administrative appeals once automated citations are issued to animal owners.

PART TWO: SPECIFIC SERVICE REQUESTS AND APPROVALS

The County will provide the City with the services authorized below:

Animal Care Services:

X The City authorizes the County to provide animal care services for animal s originating within the boundarie s of the City during fiscal year 2024/25 according to the terms and conditions set forth in Part One of this Agreement. The budgeted cost of animal care services for the City will be $3,036,515.35 for fiscal year 2024/25. In addition to the budgeted amount, as more fully set forth in Part One above, the City will also pay the County, according to rates and fees approved by the County Board of Supervisors for: (1) animal care services associated with County shelter stays of more than fifteen (15) days; (2) for County employee time expended in connection with petitions brought by the Director of Animal Services to determine whether dogs residing in the jurisdictional limits of the City are potentially dangerous or vicious, and (3) for County employee time expended in connection with any appeals from such determinations . In addition, if an administrative hearing officer is not a County employee, the City agrees to reimburse the County’s costs for administrative hearing officer time at the administrative hearing officer’s customary hourly rate. Consistent with Section 8.3 of the parties’ Animal Services Agreement, the County shall credit the City with revenues paid by City residents toward amounts owed by the City for services provided.

Field Services:

□ The City authorizes the County to provide budgeted field services during fiscal year 2024/25 of _____________________________ ; with field services budgeted at _________ hours per week, to be provided by the County to the City, according to the terms and conditions set forth in Part One. If it appears that the City may exceed its budgeted cost and hours for field services: (i) the County will continue 312
City of Oxnard

to provide additional state-mandated services to the City, and the City agrees to pay for those additional state-mandated services according to the rates and fees approved by the County Board of Supervisors, and (ii) the County will only provide further field services that are not state -mandated to the City upon receipt of City written approval for such services, and the City agrees to pay for all such services authorized in writing by City personnel. The City hereby agrees to the County’s enforcement of the City’s municipal code provisions in providing field services.

X The City authorizes the County to provide field services only for emergency calls (requests for an animal services officer by law enforcement or fire personnel, aggressive animal at large threatening the public, wild animal at large in City area, livestock at large and in sight, stray animal bite with the animal at large or confined by a non-owner) at a not to exceed amount of __1000__ hours for the fiscal year.

This level of service is intended to provide emergency response on an as-needed basis from the County on behalf of a City that employs its own field services when requested by the City and the County is able to respond. The City hereby agrees to the County’s enforcement of the City’s municipal code provisions in providing field services.

□ The City declines to have the County provide field services.

Administrative Services:

Animal License Processing:

X The City authorizes the County and/or the County’s vendor to provide animal license processing services for the City during fiscal year 2024/25 according to the terms and conditions set forth in Part One.

□ The City has adopted the license fees set forth in Animal Services’ approved schedule of rates and fees.

X The City has adopted the following license fees that differ from the license fees set forth in the Ventura County Animal Services approved schedule of rates and fees:

Specify:

Current City license fees were adopted by the City on June 21, 2022.

□ The City declines to have the County provide animal license processing.

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Automated Citation Service:

X The City authorizes the County and/or the County’s vendor to provide automated citation processing services for the City during fiscal year 2024/25 according to the terms and conditions set forth in Part One.

□ The City declines to have the County and/or the County’s vendor provide automated citation processing services.

CITY OF OXNARD COUNTY OF VENTURA

Signature:____________________ Signature:____________________ [Title of Authorized Representative] Director of Animal Services

Date:________________________ Date:________________________

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FY 24-25 Animal Safety Services Agreement
Public Safety Committee
May 28, 2024
Oxnard City Council
June 18, 2024
Edgar Fernandez,
Commander
315

1. That the Public Safety Committee recommend the City
Council approve and authorize the Mayor to approve a budget in the amount of $2,647,277 for FY 24-25, total cost projection for the fifth year of a five year agreement (A-8151) with the County of Ventura to provide animal safety services.

2. That the City Council approve and authorize the Mayor to approve a budget in the amount of $2,647,277 for FY 24-25, total cost projection for the fifth year of a five year agreement (A-8151) with the County of Ventura to provide animal safety services.

RECOMMENDATION 2
316
• Five year services agreement with the County of Ventura was approved by City Council on June 2, 2020.
• Per the agreement, each year the Police Department is required to complete an agreement for the cost of the
upcoming fiscal year.

BACKGROUND 3
317
Services provided by VCAS in Service Level Agreement:
• Animal Care Services
• Emergency Field Services
• Animal License Processing
SERVICES PROVIDED 4
318
VCAS Shelter Services:
• Confiscation
• Boarding
• Impoundment
• Quarantine
• Veterinary services
• Request for euthanasia
• Animal adoptions
• Disposal of dead animals
• Post missing/found animal on their website
• Owner surrender
• Assistance of Pet Retention Specialist
Impounded animals will be vaccinated, given necessary care, food, and shelter in accordance with state law.

ANIMAL CARE SERVICES 5
319
• Will only respond when a City ASO is not available
• Will be on-call when forecasted
• Will respond in emergency situations or “as-needed” when requested by police or fire personnel
• On-call standby and emergency response rate is $130/hour • Emergency response examples:
▪ Vicious animal at large threatening the public
▪ Stray animal bite with the animal at large or confined by a non-owner
▪ Injured animal
EMERGENCY FIELD SERVICES 6
320
Animal License Processing:
• Process animal licenses for the City
• Send renewal notices to animal owners
• Animal owners will have access to renew animal licenses online • License fees (minus $6 license processing fee) will be credited to the amount the City owes each quarter
ANIMAL LICENSE PROCESSING 7
321
• Cost of the agreements reflect a percentage of the VCAS FY Budget
AGREEMENT HISTORY 8
VCAS COST % Difference
FY 18-19 $1,948,039 +5.0%
FY 19-20 $2,113,884 +8.5%
FY 20-21 $2,324,778 +9.9%
FY 21-22 $2,479,135 +6.6%
FY 22-23 $2,669,598 +7.7%
FY 23-24 $2,925,981 +8.7%
FY 24-25 $3,097,685 +5.5%
322
• Still a percentage of the VCAS FY Budget
• A consortium of costs shared by the eight (8) contract cities and County
• Percentage is a 3-year weighted average of animal intakes • No annual “true-ups”
• 5% built-in increase each year of the agreement
• Revenue is still a credit against amount owed on quarterly invoices
BILLING METHODOLOGY 9
323
FY 24-25 AGREEMENT 10
2021 Intake 2022 Intake 2023 Intake 3-Year
Weighted
Average
FY 24-25
Animal Care
Cost
Camarillo 608 – 10.1% 613 – 9.3% 650-9.2% 9.62% $681,032.48 Fillmore 102 – 1.7% 146 – 2.2% 165-2.3% 2.01% $142,585.72 Moorpark 119– 2.0% 174 – 2.6% 186-2.6% 2.45% $173,307.84 Ojai 38 – 0.6% 46 – 0.7% 57-0.8% 0.66% $46,515.06
Oxnard 2377 –

39.4%
2799 –

42.3%
2,897-40.8% 40.86% $3,097,685.35
Port
Hueneme
267 – 4.4% 221 – 3.3% 254-3.6% 3.81% $269,574.86
Simi Valley 570 – 9.5% 648 – 9.8% 730-10.3% 9.66% $684,049.57 Ventura 716 – 11.9% 773 – 11.7% 819-11.5% 12.06% $850,463.91 County 1234 –

20.5%
1194 –

18.1%
1,334-18.8% 19.30% $1,365,862.85
Total
Intake
6,031 6,614 7,092 - $7,431,963.87
324
Shelter Services: $3,036,515.35
Additional Projected Costs: $61,170.00
- Emergency Field Services, Animal License Processing Fees, Citation Program Projected Cost of Agreement: $3,097,685.35 Projected License Revenue: $450,408.00
Total Projected Cost of Agreement: $2,647,277.35 FY 24-25 AGREEMENT 11
325

QUESTIONS
12 326
327
328
329
330
331
332
333
334

CITY COUNCIL AGENDA REPORT

INFORMATION/CONSENT AGENDA
AGENDA ITEM NO. J.8

DATE: July 2, 2024

TO: City Council

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: Resolution Amending the Citywide Classification and Salary Resolution.

RECOMMENDATION

That the City Council approve the resolution amending the Citywide Classification and Salary Resolution.

(This item did not originate in Committee.)

BACKGROUND

The City-Wide Classification and Salary Resolution adopted on June 18, 2024, omitted two existing titles.

DISCUSSION

Resolution No. 15,801, adopted on June 18, 2024 contained an omission of two existing titles: Utilities Technical Services Specialist and Utilities Technical Services Specialist, Senior. The Fiscal Year 2024-25 Adopted Budget included the required funding associated with the positions. This correction will allow the City to be in full compliance with CalPERS requirements.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

There is no financial impact. The funding for the positions was included in the Fiscal Year 2024-25 Adopted Budget.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Tanya Williams, Financial Analyst III

ATTACHMENTS

1. Classification and Salary Resolution Amendment

335

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD AMENDING RESOLUTION NO. 15,801 AUTHORIZING AND APPROVING CLASSIFICATION AND SALARY SCHEDULES PURSUANT TO CHAPTER 4 OF THE CITY PERSONNEL RULES AND

REGULATIONS
WHEREAS, on June 18, 2024, the City Council was presented with Resolution No. 15,801 authorizing full-time equivalent positions in the City service effective July 1, 2024.

WHEREAS, Exhibit “A” in Resolution No. 15,801 was presented to Council and was missing a page that included two classifications that are currently occupied by current City employees.

WHEREAS, Chapter 4, Article 4.5 of the City of Oxnard Personnel Rules and Regulations requires that the City of Oxnard classification listing all classes of positions in the general city service be established by resolution of the City Council; and,
NOW, THEREFORE, the City Council of the City of Oxnard resolves to amend Exhibit “A” of Resolution No. 15,801 in accordance with Chapter 4, Articles 4.5 of the City of Oxnard Personnel Rules and Regulations, by adding the following classification and establishing salary ranges for those classifications effective July 1, 2024:

Salary
Grade Classification Title FLSA
Status
Union
Code
Compensation
Frequency
Hourly (H)/
Salary (S)
Range
I15 Utilities Technical Services
Specialist NE IUOE Hourly $23.2273 -
$35.5335
I20 Utilities Technical Services
Specialist, Senior NE IUOE Hourly $26.9383 -
$37.7135

PASSED AND ADOPTED this 2nd day of July 2024, by the following vote:

YES:

NOES:

ABSENT:

ABSTAIN:

_________________
John C. Zaragoza, Mayor

ATTEST:

_________________________
Rose Chaparro, City Clerk
336

APPROVED AS TO FORM:

_________________________
Stephen M. Fischer, City Attorney

337

CITY COUNCIL AGENDA REPORT

PUBLIC HEARINGS
AGENDA ITEM NO. K.1

DATE: July 2, 2024

TO: City Council

FROM: Emilio Ramirez, Housing Director, (805) 385-8094, [email protected]

SUBJECT: Public Hearing on the Renewal and Expansion of the Oxnard Downtown Management District. (30 minutes)

RECOMMENDATION

That City Council:

1. Conduct a public hearing concerning the renewal and expansion of the Oxnard Downtown Management District ("District") and tabulate the ballots for and against its renewal.

2. If a weighted majority of the ballots are in support of the renewal of the District, adopt a resolution renewing the District and levying assessments in the District for fiscal year 2024-2025 to fiscal year 2028-2029.

(This item did not originate in Committee.)

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/2rIAxH7yW6Y

BACKGROUND

On July 16, 2019, the City Council adopted Resolution No. 15,251, authorizing the Renewal of the Oxnard Downtown Management District (“District”) and levying of assessments for a five (5) year period, beginning January 1, 2020, and expiring on December 31, 2024.

The District wishes to renew and continue levying assessments. If a weighted majority of the ballots are not in support of the renewal, the District will receive one last installment of assessments in the fall of 2024, (authorized in fiscal year 2023-2024) and the District will no longer exist and no further assessments will be levied.

On April 30, 2024, the City Council adopted a Resolution of Intent (Resolution No. 15,773) to renew and expand the District and levy and collect assessments therein, and to hold a public hearing on July 2, 2024. The resolution was adopted pursuant to the requirements of Section 36600 et. seq. of the California Streets and Highways code, also known as the Property and Business Improvement District Law of 1994 (PBID Law).

Also pursuant to PBID law, a ballot and informational packet for the renewal of the District was mailed to the property owners within the proposed District boundaries. At the July 2, 2024, public hearing, the City Council will receive public testimony on the renewal of the District and the proposed assessments. The City Clerk will open and count the ballots received at the conclusion of the Public Hearing. In order for the district to be renewed, a weighted majority of ballots received must be in favor of the District renewal.

Assuming that a weighted majority of the vote supports the renewal, the City Council may renew the District by adopting a resolution. District assessments are collected by the County with the property tax billing. The first assessment 338
installment of the renewal period will be due to the County by December 10, 2024, and the second by April 10, 2025. The assessments collected by the County will be transferred back to the City in January and May 2025 for remittance to the District, to carry out programs and services for the 2025 operating year. The term of the District is five fiscal and tax years (calendar operating years), after which a new petition and ballot procedure must be carried out to renew the District again.

Since last fall, a District Renewal Committee consisting of Downtown property and business owners has been meeting to formulate the details of the renewal. The Committee determined that the renewal period will be a five-year period (10 years maximum is currently permitted by State Law for renewals) and that a 2025 annual budget of approximately $572,250 be established to be used to continue to provide enhanced maintenance, enhanced security, business development, beautification and related management services. Assessment for the remaining four years may be increased by an amount not to exceed five percent per year. An annual report is required from the DOIA.

The District boundary includes approximately a 32-block area bounded roughly by First Street on the north, the Railroad tracks and Oxnard Boulevard on the east, Eighth Street on the south and C and D Streets on the west. It is noted that the District is being expanded to the north to First Street from the centerline of B Street to Oxnard Boulevard. This two-block area includes a combination of commercial parcels associated with Downtown Oxnard along with mixed use parcels with residential rental units.

DISTRICT PROPOSAL

Under the proposed District renewal, the City, Housing Authority, and Parking Authority is estimated to be assessed $156,052, which will be combined with the estimated $416,198 from the remaining properties within the proposed renewed/expanded district boundary. The total assessment funds of $572,250 are proposed to be allocated as follows during the first renewal year. Sample programs and services will be:

1. Civil Sidewalks: $335,000 (58.5%) - Civil Sidewalks includes maintenance and safety (“clean and safe”) services in public sidewalk areas adjacent to assessed District parcels. Services include: litter pickup and illegal dumping removal, graffiti abatement, trash enclosures cleaning, sidewalk sweeping and pressure washing, gardening, weed removal, visitor assistance, daily security patrols, loitering & trespassing subject removal, and homeless outreach.

2. District Identity and Placemaking: $83,250 (14.5%) - Activities and programs that market and promote the District or promote positive aspects of Downtown Oxnard. This work plan category also includes placement of, and care for, a variety of physical improvements and amenities within the public areas for the special benefit of each identified and assessed parcel and land use within the District by creating a unique and marketable “sense of place”. The District Identity and Placemaking work plan component includes: website and social media management, newsletters, advertising and media relations, special events production, sidewalk flower planters, public art displays, holiday streetlamp décor, and street banners.

3. Organization: $154,000 (27%) - This work plan category includes professional management and related corporate operation costs of providing services, programs and improvements for the special benefit of each identified and assessed parcel and land use within the District. Organization also includes legal, accounting, insurance, facilitation of Board meetings and development, Brown Act compliance, outreach to District property and business owners. The Organization work plan component exists only for the purposes of the District and directly relates to the implementation of Civil Sidewalks and District Identity/Placemaking services, programs and improvements which specially benefit each identified assessed parcel within the District boundaries.

STRATEGIC PRIORITIES

This agenda item supports Economic Development strategy. The purpose of Economic Development strategy is to focus on the retention and expansion of Oxnard businesses by increasing the skills and employability of our local workforce, invite new business investments, and target site-based redevelopment opportunities.

This agenda item supports the Quality of Life strategy. The purpose of the Quality of Life strategy is to restore and increase quality services and programs that enrich Oxnard's diverse community, promotes safe neighborhoods, encourages community engagement, and supports our residents in their efforts to improve their quality of life.

339

FINANCIAL IMPACT

There will be a financial impact in the form of assessments levied for the renewal period on the City and City related properties if the District is renewed. The estimated amount of assessment for the related City, Housing Authority and Parking Authority properties is $156,052 for fiscal year 2024-2025. General Funds were approved in the City of Oxnard’s 2024-2025 budget to support the first year’s assessment.

Ongoing assessment payments will be requested annually as part of the City’s budget process.

For Finance Use Only: General Fund (Org. 1014104 Obj. 57410)

COMMITTEE OUTCOME

This item did not originate in Committee. However, the Council previously considered a related item at their April 30, 2024 meeting

Prepared by: Emilio Ramirez, Housing Director

ATTACHMENTS

1. Resolution

2. Engineers Report

3. Management District Plan

4. Presentation ODMD Renewal

340
RESOLUTION NO.

A RESOLUTION OF THE CITY OF OXNARD TO RENEW AND

EXPAND THE OXNARD DOWNTOWN MANAGEMENT

DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS

WITHIN SUCH DISTRICT PURSUANT TO THE PROPERTY
AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994,
PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND

HIGHWAYS CODE
WHEREAS, pursuant to the Property and Business Improvement District Law of 1994, California Streets and Highways Code Section 36600 et seq. (the "Law"), the City Council adopted on April 30, 2024, Resolution No. 15,773, "A Resolution of the City of Oxnard Stating its Intention to Renew and Expand the Oxnard Downtown Management District ("District") and to Levy and Collect Assessments Within Such District Pursuant to the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code and Appointing a Time and Place for a Public Hearing" ("Resolution of Intention"); and WHEREAS, the Resolution of Intention, among other things, approved the Management District Plan on file in the office of the City Clerk; and WHEREAS, the City caused notice of a public hearing concerning the proposed renewal of the District and the proposed levy of assessments within such District to be duly mailed, as required by law, to the record owner of each parcel proposed to be assessed within the District; and
WHEREAS, a public hearing concerning the proposed of the District for a five (5) year period and the proposed levy of assessments within such District was held on July 2, 2024 at or around the hour of 6:00 p.m. at the City Council Chambers located at 305 W. Third St., Oxnard, California 93030; and
WHEREAS, at or before the public hearing, staff submitted to the City Council the Management District Plan which included the Assessment Engineer's Report along with any modifications. Such modifications do not substantially change the proposed assessments, and do not revise, change or modify the boundaries of the proposed District, the type or types of improvements, maintenance or activities to be funded with the revenues from the assessments, or the proposed assessment rates. The City Council hereby orders such modifications, if any, be made to the Management District Plan as presented to the City Council and now on file in the office of the City Clerk; and
341
WHEREAS, at the public hearing, the City Council heard and considered the testimony of all interested persons for or against the renewal of the District, the levy of assessments within such District, and the type or types of improvements, maintenance and activities to be funded with the revenues from the assessments, and a full, fair and complete hearing was held; and
WHEREAS, the City Council heard and considered all objections or protests to the proposed assessments and tabulated the assessment ballots submitted, and not withdrawn, in support of or opposition to the proposed assessments. The City Council hereby finds that a majority protest does not exist as defined in Section 4(e) of Article XIIID of the California Constitution and Section 53753 of the California Government Code. All objections or protests, both written and oral, are hereby duly overruled; and
WHEREAS, the public interest, convenience and necessity require the proposed renewal of the District; and
WHEREAS, the opinion of the City Council, the property within the District will be benefited by the improvements and activities to be funded by the assessments, and no assessment has been imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel; and WHEREAS, the Law and re-establishment of the District authorizes the City of Oxnard to levy and collect assessments on real property within the District; and WHEREAS, it is necessary for the City Council to adopt a resolution authorizing the levy and collection assessments in the District for each of the five years.

NOW, THEREFORE, the City Council of the City of Oxnard resolves:

Section 1. Renewal of District. Pursuant to the Law, the Oxnard Downtown Management District is hereby renewed for five (5) years, commencing with fiscal year 2024- 2025 and ending with fiscal year 2028-2029.

Section 2. Description of District. The boundaries of the proposed renewed District include an approximate 36 block area bounded roughly by First Street on the north, the railroad tracks/Oxnard Boulevard on the east, Eighth Street on the south and C Street/D Street on the west.

Section 3. Amount of Assessment.
(a) Except where funds are otherwise available, an assessment will be levied annually to pay for all the improvements, maintenance and activities to be provided within the District, commencing with fiscal year 2024-2025 and ending with fiscal year 2028-2029. For purposes of levying and collecting assessments within the District, a fiscal year shall commence on each July 1st and end on the following June 30th. 342
(b) The total amount of the proposed assessment to be levied and collected for fiscal year 2024-2025 is estimated to be $572,261. A maximum increase of 5% per annum, upon approval of the Property Owner's Association Board may be imposed. Assessments may also be increased based on new building construction on parcels within the District or reconfiguration of land areas and street frontages.
(c) The method and basis of levying the assessment is set forth in the Management District Plan and Assessment Engineers Report on file in the office of the City Clerk.

Section 4. Fund. A special fund shall be created, designated as the "Oxnard Downtown Management District Fund," into which all revenue derived from assessments levied pursuant to this Resolution shall be placed, and such funds shall be used only for the purposes specified in this Resolution. This fund may be subject to an annual independent audit of financial statements.

Section 5. Use of Revenues. The proposed activities for the District include providing street, sidewalk, alley and public parking lot cleaning and other municipal services supplemental to those normally provided by the City of Oxnard, additional security services, business development, promotions and marketing, expansion of physical amenities throughout Downtown, related management and operation services, and other improvements and activities which benefit businesses and real property located in the District.

Section 6. District Administration and Contract Services. The City Manager, acting as agent for the City, will receive the assessment funds in trust on behalf of the Downtown Oxnard Improvement Association, Inc. (DOIA) and will disburse said funds to DOIA in accordance with a Management Agreement between the City and DOIA, to administer the District and fund the activities described in Section 5 above. The City may require any agency that holds funds in trust on behalf of the District for any purposes whatsoever, at no expense to the City, to provide an annual independent report of audited financial statements by a certified public accountant of these funds. The report may be funded from assessment proceeds as part of the general administration of the District. At all times the City shall reserve full rights of accounting of this fund.

Section 7. Amendments. Properties within the District established by this Resolution shall be subject to any amendments to the Law.

Section 8. Bonds. No bonds shall be issued in conjunction with the renewal of the District.

Section 9. Recordation of Notice and Diagram. The City Clerk or a designee is hereby authorized and directed to record a notice and an assessment diagram pursuant to Section 36627 of the California Streets and Highways Code following adoption of this Resolution. 343
Section 10. Levy of Assessment. The adoption of this Resolution and recordation of the notice and assessment diagram pursuant to Section 36627 of the California Streets and Highways Code constitutes the levy of an assessment in each of the fiscal years referred to in the Management District Plan. Each year, the City Finance Department shall prepare an assessment roll of parcels and assessment amounts and forward such roll to the County of Ventura Auditor-Controller Office and such assessment shall then be collected at the same time and in the same manner as the County property taxes are collected. Assessments for parcels not on the County's property tax rolls shall be collected directly by the City.

PASSED AND ADOPTED THIS 2nd day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John C. Zaragoza, Mayor
ATTEST:

Rose Chaparro, City Clerk
APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney
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ATTACHMENT 1

OXNARD DOWNTOWN MANAGEMENT DISTRICT

RENEWAL

ASSESSMENT ENGINEER’S
REPORT

Being Renewed for a 5 Year Term Pursuant to
California Streets and Highways Code Section 36600 et seq.

Property & Business Improvement District Act of 1994, as amended

Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates

APRIL 10, 2024
V 3.0

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OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

1 ASSESSMENT ENGINEER’S REPORT

To Whom It May Concern:

I hereby certify to the best of my professional knowledge and experience that each of the i dentified benefiting properties located within the proposed Oxnard Downtown Management District ("ODMD") being renewed for a five (5) year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property.

Introduction

This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution (Proposition 218) to support the benefit property assessments to be levied within the proposed ODMD in the City of Oxnard, California being renewed for a five (5) year term.

The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits derived by real properties within the proposed renewed ODMD.

April 10, 2024
3/31/26
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2 Background
The ODMD is a is a property-based benefit assessment type district being renewed for a five (5) year term pursuant to Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 (the “Act”). Due to the benefit assessment nature of assessments levied within a property and business improvement district (“PBID”), district program costs are to be distributed amongst all identified benefiting properties based on the proportional amount of special program benefit each property is expected to derive from the assessments levied. Within the Act, frequent references are made to the concept of relative “benefit” received from PBID programs and activities versus amount of assessment paid. Only those properties expected to derive special benefits from PBID funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be conferred on each assessed property.

Supplemental Article XIIID Section 4(b) California Constitution Proposition 218 Procedures and Requirements

Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the ODMD. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution.

Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the ODMD, these supplemental requirements will be taken into account. The key provisions of Article XIIID along with a description of how the ODMD complies with each of these provisions are delineated herein.

(Note: All section references below pertain to Article XIIID of the California Constitution):

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OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

3 Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed”.

Setting:

The proposed renewed ODMD is centrally located in the center of Oxnard and centered along A Street from First Street to Eighth Street. ODMD is bounded roughly by First and Second Streets on the north, the Railroad tracks on the east, Eighth Street on the south and C and D Streets on the west. There is one benefit zone within ODMD (See attached map in Appendix 2).

General Boundary Description
ODMD includes 433 parcels of which 432 are identified assessed parcels in a 32 block area of Historic Downtown Oxnard. The property uses within the boundaries of the proposed renewed ODMD which will receive special benefits from PBID funded programs and services are currently a unique mix of retail, restaurant, service, office, government, residential and parking. ODMD boundaries were selected to incorporate the core Downtown parcels and businesses. There is one benefit zone within the proposed renewed District . It is noted that ODMD is being expanded to the north to First Street from the centerline of B Street to Oxnard Boulevard. This two block area includes a combination of commercial parcels associated with Downtown Oxnard along with mixed use parcels with residential rental units.

Detailed Boundary Description
More specifically, the ODMD is described as follows:

Beginning at the intersection of the centerlines of Second Street and D Street; thence east along said centerline of Second Street to the centerline of B Street; thence north along said centerline of B Street to the centerline of First Street; thence east along said centerline of First Street to the east property line of Oxnard Boulevard; thence south along said east property line of Oxnard Boulevard to the tangent intersection point with the west properly line of the railroad right of way; thence southeast and south along said west property line of the railroad right of way to the centerline of Fifth Street; thence west along said centerline of Fifth Street to the prolongation of the east property line of the public alley lying east of and parallel to Met a Street; thence south along said east properly line of said public alley to the centerline of Seventh Street; thence west along said centerline of Seventh Street to the east property line of parcel APN 202 -0-360-110; thence south along said east property line of said parcel APN 202 -0-360-110 to the south property line of said parcel APN 202 -0-360-110; thence west along said south property line of said parcel APN 202 -0-360-110 to the west property line of said parcel APN 202 -0-360-110; thence north along sa id west property line of said parcel APN 202 -0-360-110 to the centerline of Seventh Street; thence west along said centerline of Seventh Street to the centerline of Oxnard Boulevard; thence south along said centerline of Oxnard Boulevard to the centerline of Eighth Street; thence west along said centerline of Eighth Street to the centerline of D Street; thence north along said centerline of D Street to the centerline of Seventh Street; thence east along said centerline of Seventh Street to the prolongation of the west property line of the public alley lying 348

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

4 east of and parallel to D Street; thence north along said west property line of said public alley to the centerline of Third Street; thence west along said centerline of Third Street to the centerline of D Street; thence north along said centerline of D Street to the point of beginning.

Benefit Zones
There is one benefit zone within the proposed renewed District.

District Boundary Rationale
The ODMD boundaries encompass the heart of Downtown Oxnard. These parcels showcase a unique array of pedestrian oriented uses - retail, restaurant, service, office, government, residential and parking that form what is considered the “cohesive urban fabric” of the evolving mixed-use Downtown center.

The District boundaries were chosen to generally include parcels that comprise the commercial core that attracts pedestrians and visitors to Downtown Oxnard. Also included are current as well as future in-town residential parcels. Parcels adjacent to the north, south and east of ODMD are not part of the District's commercial and in-town residential pedestrian core and have different marketing needs than those in the ODMD. These outside parcels and uses require different services than those in the ODMD and would not specially benefit from the increased pedestrian oriented programs, services and improvements offered by the ODMD. Therefore, they have not been included within the ODMD boundaries.

Surrounding parcels to the north, south and west that are zoned solely residential and/or with residential uses have not been included within the boundaries of the PBID. The Property and Business Improvement District Law of 1994, California Streets & Highway Code § 36632 states, “Properties zoned solely for residential use……… are conclusively presumed not to benefit from the improvements and service funded through these assessments and shall not be subject to any assessment …..”. For these reasons, no residentially zoned parcels or residential uses north, south or west of the proposed renewed District are included in the ODMD boundaries.

A list of all parcels included in the proposed renewed ODMD is shown as Appendix 1, attached to this Report identified by their respective Ventura County assessor parcel number. The boundary of the proposed renewed ODMD is shown on the map of the proposed renewed ODMD attached as Appendix 2 to this Report.

All identified assessed parcels within the above -described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Report and in the Management District Plan. All ODMD funded services, programs and improvements provided within the above described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District. Each assessed parcel within ODMD will proportionately specially benefit from the District funded programs and services (i.e. civil sidewalks, district identity/placemaking and organization ). These services, programs and improvements are intended to improve commerce, employment, livability, rents and occupancy rates and investment viability of individually assessed parcels and businesses /residential units on them within ODMD.

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5 District services, activities and programs confer special benefits on each and every individually assessed parcel by deterring crime, improving aesthetics and marketing goods and services available from individually assessed parcels and the businesses /occupants on them within the District, all considered necessary in a competitive properly managed mixed-use business district. All District funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Oxnard and are only provided for the special benefit of assessed parcels within the boundaries of the proposed renewed ODMD.

The District includes 433 parcels of which 432 are identified as assessable within one Benefit Zone and which are listed in the Assessment Roll included as Appendix 1. For further information, a District Boundary Map is included as Appendix 2.

Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “

QUANTITATIVE BENEFIT ANALYSIS

As stipulated in Article XIIID Section 4(b) of the California Constitution, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to properties in t he area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special benefit” as defined by Article XIIID means a distinct benefit over and abov e general benefits conferred o n real property located in the district or to the public at large.

The property uses within the boundaries of the District that will receive special benefits from District funded programs and services are currently a n array of retail, restaurant, service, office, banking, residential and commercial parking. Services, programs and improvements provided and funded by the District (i.e. civil sidewalks, district identity/placemaking and organization) are designed to provide special benefits to identified assessed parcels and the array of land uses within the boundaries of the ODMD as described in the Work Plan Details starting on page 10 of this Report.

The proposed renewed District programs, improvement s and services and Year 1 – 2025 budget allocations are shown in the Table below:

Year 1 – 2025 District Special Benefit Budget (Assessment Revenue Only)

CIVIL SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING ORGANIZATION TOTAL
$335,000 $82,000 $155,261 $572,261

58.5397% 14.3291% 27.1312% 100%

The special benefits conferred on assessed parcels within the ODMD are particular and distinct to each 350

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

6 and every identified assessed parcel within the ODMD and are not provided to non -assessed parcels outside of the ODMD. These programs, services and improvements will only be provided to each individual assessed parcel within the District boundaries and, in turn, confer proportionate “special benefits” to each assessed parcel.

In the case of the ODMD, the very nature of the purpose of this ODMD is to fund supplemental programs, services and improvements to assessed parcels within the District boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. The City of Oxnard does not provide these programs and services. All benefits derived from the assessments to be levied on assessed parcels within the District are for services, programs and improvements directly benefiting each individual assessed parcel within the District. No District funded services, activities or programs will be provided outside of the District boundaries.

While every attempt is made to provide District services and programs to confer benefits only to those identified assessed parcels within the District, Article XIIID stipulates that general benefits exist either by design or unintentional in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the ODMD, or “spillover” onto parcels surrounding the ODMD, or to the public at large who might be passing through the ODMD with no intention of transacting business within the ODMD or interest in the ODMD itself.

Assessment engineering experience throughout California has found that general benefits within a PBID type assessment district tend to range from 2-6% of the total costs. Most PBIDs in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for ODMD. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within ODMD, general benefit to the public at large within ODMD and general benefit to parcels immediately outside/adjacent to ODMD.

General Benefit – Assessed Parcels within District

ODMD funded programs are narrowly designed and carefully implemented to specially benefit the assessed District parcels and are only provided for the special benefit to each and every assessed parcel within the District. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 432 assessed parcels within the District are distinct and special . In the case of ODMD, it is projected that there are 0.25% general benefits conferred on these 4 32 assessed parcels. While this factor can typically range from 0.10% to

1.0%, this high ratio of special benefits to general benefits (0.25%) is because ODMD funded programs and services are specially geared to the unique needs of each assessed parcel within ODMD and are directed specially only to these parcels within ODMD. This concept is further reinforced by the proportionality of special benefits conferred on each assessed parcel within ODMD as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. . The computed 0.25% general benefit value on the 432 assessed parcels within the ODMD equates to $1,431 or (.25% x $572,261).

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7 General Benefit – Public At Large

While the ODMD funded programs are narrowly designed and carefully implemented to specially benefit the assessed District properties and are only provided for the special benefit to each and every assessed parcel within the District, these District funded programs may also provide an incidental general benefit to the public at large within the District. Assessment Engineering experience in California has found that generally well over 95% of people moving about within PBID boundaries are engaged in business related to as sessed parcels and businesses contained on them within the PBID, while the public at large “just passing through” is typically much less than 5%.

Tangible services and improvements such as security, cleanliness, bench and shade tree maintenance would confer higher levels of general benefits on the public at large than say planters, decorative pavement/signage and other general district management and operation activities. Typically, a factor range from 0.5% to 2% (0.0 05 to 0.0 2) is assigned to tangible streetscape/sidewalk type services, programs and improvements,. Then a factor range from 0.25% to 1.5% (0.0025 to 0.015) is assigned to intangible services, programs and improvements.

Based on experience curves and the nature of the proposed ODMD funded services, programs and improvements and over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that districtwide general benefit factors for each of the ODMD funded special benefit program element costs that provide a general benefit to the public at large would be 1.5% (0.015) assigned to Civil Sidewalks and 0.5% (0.005) assigned to both District Identity/Placemaking and Organization.

These factors are applied to each assessment funded program element cost in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $6,211. Each of these factors and corresponding general benefit calculations/values for the public at large are shown in the Table below:

GENERAL BENEFITS TO “PUBLIC AT LARGE”

A B C E
Program Element Dollar
Allocation
General
Benefit
Percent
General
Benefit
Factor
General
Benefit Value
(A x C)
CIVIL SIDEWALKS $335,000 1.50% 0.0150 $5,025
DISTRICT IDENTITY & PLACEMAKING $82,000 0.50% 0.0050 $410 ORGANIZATION $155,261 0.50% 0.0050 $776
Total $572,261 $6,211

Spillover General Benefits to Parcels Outside of District

While District programs and services will not be provided directly to parcels outside the District boundaries, it is reasonable to conclude that District services may confer an indirect general benefit on parcels immediately adjacent to the District bounda ries. An inventory of the District boundaries finds 352

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

8 that the District is surrounded by 69 parcels, of which 12 are commercial uses and 57 are residential, non-profit or public uses adjacent to or across a street or alley from the proposed renewed ODMD.

There is 1 non-identified (i.e. not assessed) exempt parcel within the proposed renewed ODMD.

Typically, a factor of 100% (1.0) is first assigned to assessed parcels within the district, then a factor range from 5% to 15% (0.05 to 0.15) is assigned to commercial zoned and used parcels directly outside the district, then a factor range from 0.5% to 1.5% (0.005 to 0.015) is assigned to residential zoned and used parcels directly outside the district, and finally, a factor range from 0.5% to 1.5% (0.005 to 0.015) is assigned to public and/or non-profit owned and fully occupied parcels directly outside the district.

The 69 parcels outside the District boundaries adjacent to or across streets or alleys from assessed parcels within the District as well as the 1 non-identified, non-assessed parcel within the District can reasonably be assumed to receive some indirect general benefit as a result of PBID funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that a benefit factor of 1.0 be attributed to the 432 identified assessed parcels within the District; a benefit factor of 0. 1 be attributed to general benefits conferred on the 13 commercial parcels adjacent to or across a street or alley from the proposed renewed ODMD as well as the 1 non-assessed parcel within the ODMD; and a benefit factor of 0.0 1 be attributed to general benefits conferred on the 57 residential, non-profit and public parcels adjacent to or across a street or alley from the proposed renewed ODMD. The cumulative dollar value of this general benefit type equates to $2,477 ($1,722+ $755) as delineated in the Table below.

“Spillover” General Benefits

Parcel Type Quantity Benefit
Factor
Benefit
Units
Benefit
Percent
Benefit
Value
Assessed Parcels In 432 1.00 432.00 99.5690% $572,261
Commercial Perimeter Parcels Out; Non-Assessed In 13 0.10 1.30 0.2996% $1,722 Other Perimeter Parcels Out 57 0.01 0.57 0.1314% $755
TOTAL 433.87 100.00% $574,738

Composite General Benefit

Based on the general benefit values delineated in the three sections above, the total value of general benefits conferred on assessed parcels within the District, the public at large and parcels outsid e the District equates to $10,119 ($1,431 + $6,211 + $2,477) or 1.74% of the total adjusted costs. This leaves a value of 98.26% assigned to special benefit related costs. For the purposes of this analysis, the general benefit value of 1.74% will be conservatively rounded up to 2.0% or $11,679. The general benefit value of $11,679 when added to the special benefit value of $572,261 (Year 1 –2025 assessments) equates to a total adjusted Year 1 – 2025 program cost of $583,940. Remaining costs that are attributed to general benefits will need to be derived from other sources. A comparison of special and general benefit funding sources is shown in the Table below.

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9 Special and General Benefit Revenue Sources

Revenue Source Revenue % of Total
District Assessments $572,261 98.0%
Grants, donations, sponsors, program income, etc. $11,679 2.0% TOTAL $583,940 100.0%

A breakdown of projected special and general benefit costs for each year of the 5-year renewal term is shown in the following Table:

5 Year Special + General Benefit Costs

YR PROGRAM CATEGORY

SPECIAL

BENEFIT

ASSESSMENT
COSTS

GENERAL

BENEFIT
NON-

ASSESSMENT
COSTS
TOTAL

ADJUSTED
COSTS
% OF
TOTAL
1 CIVIL SIDEWALKS $335,000 $6,837 $341,837 58.5397%

DISTRICT IDENTITY &
PLACEMAKING $82,000 $1,673 $83,673 14.3291%
ORGANIZATION $155,261 $3,169 $158,430 27.1312%
Total $572,261 $11,679 $583,940 100%

2 CIVIL SIDEWALKS $351,750 $7,179 $358,929 58.5397%

DISTRICT IDENTITY &
PLACEMAKING $86,100 $1,757 $87,857 14.3291%
ORGANIZATION $163,024 $3,327 $166,351 27.1312%
Total $600,874 $12,263 $613,137 100%

3 CIVIL SIDEWALKS $369,338 $7,538 $376,876 58.5397%

DISTRICT IDENTITY &
PLACEMAKING $90,405 $1,845 $92,250 14.3291%
ORGANIZATION $171,175 $3,493 $174,668 27.1312%
Total $630,918 $12,876 $643,794 100%

4 CIVIL SIDEWALKS $387,805 $7,915 $395,720 58.5397%

DISTRICT IDENTITY &
PLACEMAKING $94,925 $1,937 $96,862 14.3291%
ORGANIZATION $179,734 $3,668 $183,402 27.1312%
Total $662,464 $13,520 $675,984 100%

5 CIVIL SIDEWALKS $407,195 $8,311 $415,506 58.5397%

DISTRICT IDENTITY &
PLACEMAKING $99,671 $2,034 $101,705 14.3291%
ORGANIZATION $188,721 $3,851 $192,572 27.1312%
Total $695,587 $14,196 $709,783 100%
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10 DISTRICT WORK PLAN

Overview

The Programs and activities to be funded by the ODMD include civil sidewalks, district identity/placemaking and organization. The property uses within the boundaries of the District that will receive special benefits from District funded programs, services and improvements are currently a unique mix of retail, restaurant, service, office, government, residential and parking. District funded activities are primarily designed to provide special benefits as described below to identified assessed parcels and array of land uses within the boundaries of the District.

These benefits are particular and distinct to each and every identified assessed parcel within the ODMD and are not provided to non -assessed parcels outside of the District. These programs, services and improvements will only be provided to each individual assessed parcel within the District boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

In the case of the ODMD, the very nature of the purpose of this District is to fund supplemental programs, services and improvements to assessed parcels within the District boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. The City of Oxnard does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the District are for services, programs and improvements directly benefiting each individual assessed parcel within the District. No District funded services, activities or programs will be provided outside of the District boundaries.

The projected program special benefit cost allocation of the District assessment revenues for the 5-year District term assuming a 5% maximum annual assessment rate increase is shown in the Table on page 15 of this Report.

WORK PLAN DETAILS
The programs, services and improvements to be provided by the ODMD include civil sidewalks, district identity/placemaking and organization. Each of these work plan elements are designed to add to the cohesive mixed-use urban fabric of Downtown Oxnard and assist in its economic success and vitality. The assessed parcels in the PBID will specially benefit from the District programs in the form of increas ed commerce and vitality through meeting the ODMD goals: to improve security, cleanliness, beautification, landscaping, livability and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each assessed parcel.

The following programs, services and improvements are proposed by the ODMD to specially benefit each and every individually assessed parcel within the District boundaries. ODMD services, programs and improvements will not be provided to parcels outside the District boundary.

Civil Sidewalks
Civil Sidewalks includes maintenance and s afety (“clean and safe”) services in public sidewalk areas 355

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11 adjacent to assessed parcels in ODMD. The m aintenance portion of the Civil Sidewalks category includes regular maintenance of public areas adjacent to each assessed parcel for the special benefit of each identified and assessed parcel and land use within ODMD. These services include:

• Clean Team 6-days per week
• litter and illegal dumping pickup
• graffiti and illegal sticker/poster removal
• check/empty 130+ sidewalk trash bins
• check, sweep, and secure trash enclosures
• removal of transient discards, including shopping carts, bio-waste • sidewalk scrubbing/steam cleaning
• curb line block face sweeping
• tree pruning
• weed abatement
• visitor assistance

The maintenance portion of the Civil Sidewalks work plan component is designed to specially benefit and improve the aesthetic appeal of each identified and assessed parcel within the PBID and attract more customers, clients, employees, tenants and investors which potentially would increase business volumes, sales transactions, occupancies, rental income and attractiveness of investments. Maintenance services will only be provided for identified and assessed parcels located within the PBID boundaries.

The maintenance portion of the Civil Sidewalks work plan component will assist in creating a clean environment for each assessed parcel in the District. A dirty environment deters commerce and may fail to attract patrons, residents and visitors, and reduce rents and occupancies. For parcels with general commercial, retail, restaurant, office and commercial parking uses, this activity is designed to increase vehicular and pedestrian traffic, increase commerce and customer activity, attract and retain new business and patrons, and may increase commercial rents and commercial occupancies for the assessed parcels within the BID boundaries. In the case of assessed publicly/non-profit owned/occupied parcels, District funded clean programs and services provide these parcels with enhanced facility entrances and perimeters and better public/non-profit facilities in turn for their employees, visitors, vendors and users of these public /non-profit facilities. Further, in the case of assessed residential use parcels , District funded clean programs and services are designed to improve the appearance of entrances and perimeters for the special benefit of each assessed residential parcel and in turn their tenants, visitors and owners, which, in turn, may increase occupancies and rental income. Each assessed parcel will specially benefit from the clean programs and services which will only be provided to, and for the direct special benefit of, each identified assessed parcel within the proposed renewed District boundaries.

Safety
The safety portion of the Civil Sidewalks work plan category includes regular security of areas adjacent to each assessed parcel for the special benefit of each identified and assessed parcel and land use within ODMD. The safety portion of the Civil Sidewalks work plan component includes:
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12 • daily bike & truck Safety Patrol
• loitering & trespassing subject removal
• Crime prevention awareness campaigns
• street light outage reporting and repair orders

The safety portion of the Civil Sidewalks work plan component is designed to specially benefit and improve the security of each identified and assessed parcel within the PBID and attract more customers, clients, employees, tenants and investors which potentially would increase business volumes, sa les transactions, occupancies, rental income and attractiveness of investments. Safety services will only be provided for identified and assessed parcels located within the proposed renewed PBID boundaries.

The safety portion of the Civil Sidewalks work plan component will assist in creating a safe and secure environment for each assessed parcel in the District. An unsafe environment deters commerce and may fail to attract patrons, residents and visitors, and reduce rents and occupancies. For parcels with general commercial, retail, restaurant, office and commercial parking uses, this activity is designed to increase vehicular and pedestrian traffic, increase commerce and customer activity, attract and retain new business and patrons, and may increase commercial rents and commercial occupancies for the assessed parcels within the BID boundaries. In the case of assessed publicly/non-profit owned/occupied parcels, District funded safe programs and services provide these parcels with safer and enhanced facility entrances and perimeters and better public /non-profit facilities in turn for their employees, visitors, vendors and users of these public/non-profit facilities. Further, in the case of assessed residential use parcels, District funded safe programs and services are designed to improve the security of entrances and perimeters for the special benefit of each assessed residential parcel and in turn their tenants, visitors and owners, which, in turn, may increase occupancies and rental income. Each assessed parcel will specially benefit from the safe programs and services which will only be provided to, and for the direct benefit of, each identified assessed parcel within the District boundaries

District Identity/Placemaking
This work plan category includes regular marketing and image enhancement programs and services for the special benefit of each assessed parcel and land use within ODMD by creating a unique, marketable District identity. This work plan category also includes placement of, and care for, a variety of physical improvements and amenities within the public streetscape areas within ODMD for the special benefit of each identified and assessed parcel and land use within ODMD by creating a unique and marketable “sense of place”. The District Identity/Placemaking work plan component includes:

• daily updated responsive website DowntownOxnard.org
• integrated social media promotion – Facebook, Instagram, Twitter, YouTube • produced and sponsored live events (e.g. First Thursdays, Cruise Night, Halloween, etc.) • district advertising, newsletters, press releases, media relations, original photo library • Marketing Committee support for merchant coordinated promotions • assist prospective businesses with referrals to leasable properties • permit processing assistance

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13 Also included are:
• district-wide holiday streetlamp décor
• 162 sidewalk flower planters
• Historic Plaza Park hanging flower baskets
• public art – utility box painting and temporary murals • street banner program (88 street poles)

The District Identity/Placemaking work plan component is designed to specially benefit and improve the image of each assessed parcel within the PBID and attract more customers, clients, employees, tenants, residents and investors which potentially would increase business volumes, sales transactions, occupancies, rental income and attractiveness of investments. District Identity/Placemaking programs and services will only be provided for identified and assessed parcels located within the PBID boundaries.

For parcels with general commercial, retail, restaurant, office and commercial parking uses , District Identity/Placemaking services and programs are specifically designed to attract more customers, employees, tenants and investors for the special benefit of assessed parcels as a result of marketing assessed parcels and the goods and services and spaces available on these assessed parcels. This in turn, is intended to increase business volumes, sales transactions, commercial occupancies, commercial rental income and investme nt return. In the case of publicly/non-profit owned/occupied parcels that are assessed for these programs, District Identity/Placemaking creates better public /non-profit facilities and services on these assessed parcels by fostering better informed public /non-profit employees, visitors, vendors and users of these public /non-profit facilities. Further, in the case of residential use parcels , District Identity/Placemaking specially benefits each assessed residential parcel and creates better informed tenants, visitors and owners, which, in turn, enhance livability and may increase residential occupancies and rental income. District Identity/Placemaking services and programs will only be provided to, and for the direct and special benefit of, each identified assessed parcel within the District.

Organization
This work plan category includes professional management and related corporate operation costs of providing PBID funded services, programs and improvements for the special benefit of each identified and assessed parcel and land use within ODMD. The Organization work plan component includes:

• staff and full service office to manage PBID programs, projects, compliance reporting. • full service office to assist property and business owners with District-related needs • advocacy and representation of member interests on District issues and needs • Organize “town hall” forums and advocacy on topics such as homeless solutions, Vision Plan

Organization also includes legal, accounting, insurance, production of the Annual Planning Report and Budget and quarterly reports, facilitation of meetings of the Owners’ Association, Brown Act compliance, outreach to District property and business owners, and participation in professional peer/best practice forums such as the California Downtown Association or the International Downtown Association. It also covers the costs associated with District renewal. A portion of the Organization budget is held in reserve to offset delinquent and/or slow assessment payments. 358

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14 The Organization component is key to the proper expenditure of District assessment funds and the administration of District programs and activities for the special benefit of all parcels and land uses within the ODMD. The Organization work plan component exists only for the purposes of the District and directly relates to the implementation of Civil Sidewalks and District Identity/Placemaking services, programs and improvements which specially benefit each identified assessed parcel within the District boundaries.

In summary , all District funded services, programs and improvements described above confer proportionate special benefits to identified assessed parcels inside the District boundaries and none will be provided outside of the District. Each assessed parcel within the ODMD will proportionately specially benefit from Civil Sidewalks, District Identity/Placemaking and Organization. These services, programs and improvements are intended to improve commerce, employment, livability, rents, occupancy rates and investment viability of assessed parcels, businesses and residents within the ODMD by deterring crime, reducing litter and debris, making capital improvements and professionally marketing goods, services and spaces available within the District, all considered necessary in a competitive properly managed contemporary mixed-use business district. All District funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Oxnard and are only provided for the special benefit of each and every assessed parcel within the boundaries of the ODMD.

WORK PLAN BUDGET

Each identified assessed parcel within the ODMD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of District funded services provided. The projected District program special benefit (assessment) cost allocation budget for Year 1 (2025), is shown in the following Table:

ODMD Year 1 (2025) Special Benefit Assessment Budget

CIVIL SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING ORGANIZATION TOTAL
$335,000 $82,000 $155,261 $572,261

58.5397% 14.3291% 27.1312% 100.00%

In order to carry out the District programs outlined in the previous section, a Year 1 assessment budget of $572,261 is projected. Since the District is planned for a 5-year term, projected program c osts for future years (Years 2-5) are set at the inception of the District. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per annum , commensurate to special benefits received by each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year District term. It is noted that the 5% maximum annual rate increase is deemed necessary in order to offset substantial service and improvement cost increases projected over th e next several years and to provide levels of service and types of improvements expected and requested by District stakeholders. Carryovers, if any, may be reapportioned the following 359

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15 year for related programs, services and improvements. Detailed annual budgets will be prepared by the Owner’s Association Board and included in an Annual Plan for the City Council’s review and approval.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed renewed District. Accordingly, the Owners’ Association shall have the ability to reallocate budget line items within the budget categories based on such cost fluctuations subject to the review and approval by the Owners’ Association Board and included in the Annual Planning Report that will be approved by the Oxnard City Council pursuant to Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category. A 5-year projected ODMD budget is shown in the following Table:

YEAR 1-5 PROJECED DISTRICT ASSESSMENT BUDGET SUMMARY (Special Benefit Costs) (Assumes 5% max rate increase per year)

YR
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING ORGANIZATION TOTAL

58.5397% 14.3291% 27.1312% 100.00%
1 $335,000 $82,000 $155,261 $572,261
2 $351,750 $86,100 $163,024 $600,874
3 $369,338 $90,405 $171,175 $630,918
4 $387,805 $94,925 $179,734 $662,464
5 $407,195 $99,671 $188,721 $695,587

The ODMD assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Planning Report and adopted by the City of Oxnard City Council. The Owners’ Association Board of the Directors (“Property Owner’s Association of the ODMD) shall determine the percentage increase to the annual assessment. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the District operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Oxnard.

No bonds are to be issued in conjunction with the proposed renewed District.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewal budget or returned to stakeholders. District assessment funds may be used to pay for costs related to the following District renewal term. If the District is not renewed or terminated for any reason, unexpended funds will be returned to the property owners.

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16 Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided.

Each identified assessed parcel within the district will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed renewed ODMD (i.e., civil sidewalks, district identity/placemaking and organization ). It is the opinion of t his Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proport ionate amount of building area, land area and street frontage, except as noted otherwise herein, within one benefit zone.

The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified assessed parcel within the district. Larger buildings and parcels and/or ones with larger frontages are expected to impact the demand for services and programs to a greater extent than smaller building, land and /or street frontages and thus, are assigned a greater proportionate degree of assessment program and service costs . The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes.

The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed as an attachment to the Management District Plan and this Report.

The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) is computed by dividing the individual parcel assessment by the total special benefit program costs.

Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”

Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed renewed ODMD, they are also considerably less than other options considered by the ODMD Renewal Committee. The actual assessment rates for each parcel within the District directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective buil ding area, land area and street frontage of each parcel within one benefit zone, except as noted otherwise herein.

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”

The State Constitution - Article 13D (Proposition 218) states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly - owned parcels in fact receive no special benefit.”

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17 There are 154 publicly owned parcels within ODMD, all of which are identified and assessable for which District funded special benefit programs, services and improvements will be provided. All 154 of the assessed publicly owned parcels are owned by the City of Oxnard, including the Oxnard Parking Authority and the Oxnard Housing Authority . It is noted that the only publicly owned parcel within ODMD not being assessed is the United States Post Office parcel on A Street. The US Attorney General has opined tha t Federally owned properties are exempt from local taxes and benefit assessments in accordance with the Supremacy Clause of the US Constitution. As such, no direct PBID funded special benefit services, programs and improvements will be provided adjacent to this parcel.

For all other publicly owned /occupied parcels and facilities within ODMD, each of these parcels specially benefit from District funded programs services and improvements. The special benefits include cleaner and safer facility entrances and perimeters for their employees, visitors, tenants, vendors and other users of these public locations and facilities. Publicly owned parcels and facilities will be included in all maps, directories and District advertisements and web displays and are active components of Downtown Oxnard’s identity and fabric.

ODMD services are designed to improve the safety and cleanliness for visitors, employees, tenants and users of public facilities on publicly owned parcels within the District by deterring crime and reducing litter and debris, each considered detractions to employment, visitation and use of public facilities if not contained and properly managed. In turn, these services will serve to enhance the public service levels provided by public facilities and parcels within ODMD.

Each identified and assessable publicly owned parcel and facility within ODMD will proportionately specially benefit as delineated herein from the ODMD funded supplemental services, programs and improvements, but differently than privately owned parcels. It is the opinion of this Assessment Engineer that publicly owned parcels and public facilities do not specially benefit to the same extent as privately owned parcels from PBID funded services, programs and improvements. To offset this special benefit differential, publicly owned parcels with public facilities on them will not be assessed for public building areas located on these parcels. Publicly owned parcels with non-government uses on them will be assessed for building areas not occupied by government uses and facilities.

There is no compelling evidence that these identified assessable publicly owned parcels and facilities would not proportionately specially benefit from ODMD funded programs, services and improvements as delineated herein and, thus, will be assessed similar to privately owned parcels, except as noted herein.

Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed renewed ODMD.

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18 Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which t he amount of the proposed assessment was calculated.”

The individual and total parcel assessments attributable to speci al property benefits are shown i n Appendix 1 to the Management District Plan and this Report. The proposed renewed District and resultant assessment levies will continue for 5-years and may be renewed again at that time. The reasons (purposes) for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage, except as noted herein, within one benefit zone.

Assessment Formula Methodology

Step 1. Select “Basic Benefit Unit(s)”

Background – Generic Assessment Formula Development
The method used to determine special benefits derived by each identified assessed property within a PBID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the ODMD, the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or any combination of these factors.

Factor quantities for each parcel are then measured or otherwise determined. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by the PBID in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis.

Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the assessment formula, different factors may be assigned different “weights” or percentage of values based on their relationship to programs/services to be funded.

Next, all program and activity costs, including incidental costs, District administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property -based assessment Districts, indirect or general benefits costs may not be incorporated into the assessment formula and levied on the District properties; only direct or “special” benefits and costs may be considered. Indirect or general benefit costs, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special ben efit i s determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See pages 16- 17 of this Report for discussion regarding assessment of publicly owned parcels within the ODMD). 363

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19 From the estimated net program costs, the value of a basic benefit unit or “basic net unit cost” can be computed by dividing the total amount of estimated net program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionally or “spread” amongst all benefitting properties within the PBID.

The method and basis of spreading program costs varies from one PBID to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district.

Proposed ODMD Assessment Formula

Based on the specific needs and corresponding nature of the program activities to be funded by the proposed renewed ODMD (i.e. civil sidewalks, district identity/placemaking and organization) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proport ionate amount of building area, land area and street frontage , except as noted herein, within one benefit zone.

The “Basic Benefit Units” will be expressed as a combined function of building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”) and street frontage (Benefit Unit “C”). Based on the shape of the proposed ODMD, as well as the nature of the District program elements, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage , except as noted herein, within one benefit zone . Special benefit proportionality varies for different land uses/ownership types and assessable property characteristics (units), are adjusted via differing assessment methodologies and multiplier factors. See “Special Circumstances” beginning on page 20 of this Report which delineates special assessment methodologies and factors and how and when they are applied.

For the array of land uses within the PBID, the interactive application of building and land areas and street frontage quantities are a common method of fairly and equitably spreading special benefit costs to these beneficiaries of PBID funded services, programs and improvements. Each of these factors directly relates to the degree of special benefit each assessed parcel will receive from PBID f unded activities. There are no parcels zoned solely residential within ODMD.

Building area is a direct measure of the static utilization of each parcel and its corresponding impact or draw on PBID funded activities. In the opinion of this Assessment Engineer, the targeted weight of this factor, building area, should generate approximately 30% of the total PBID revenue (28.1905% when adjusted for precise parcel measurements, land use factors and program costs).

Land area is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on PBID funded activities. In the opinion of this Assessment Engineer, the targeted weight of this factor, land area, should generate approximately 40% of the total PBID revenue ( 43.4115% when adjusted for precise parcel measurements , land use factors and program costs).
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20 Street Frontage is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on PBID funded activities. Street frontage includes all public street frontages of a parcel. In the opinion of this Assessment Engineer, the targeted weight of this factor, street frontage, should generate approximately 30% of the total PBID revenue ( 28.3980% when adjusted for precise parcel measurements, land use factors and program costs).

Special Circumstances

1. Lower Tier Residential Uses (1-6 non-condominium residential units) It is the opinion of this Assessment Engineer that these land uses do not specially benefit from marketing and promotion activities to the extent that commercial parcels and parcels with higher density residential rental units on them do. It is the opinion of this Assessment Engineer that the assessment for parcels with 1-6 residential units on them shall be based on only on exterior building area which is a common method of fairly and equitably spreading special benefit costs to these land uses. Further, a special benefit adjustment factor of 0.5 will be applied to the measured exterior building area which then produces the number of assessable building area units. This assessment methodology directly relates to the proportionate amount of special benefit each residential parcel with 1-6 units on them will receive from ODMD funded services, programs and improvements for these land uses.

2. Upper Tier Residential Uses (7+ non-condominiums residential units) It is the opinion of this Assessment Engineer that these land uses do not specially benefit from marketing and promotion activities to the extent that commercial parcels do but more than parcels with 1-6 residential units on them do. It is the opinion of this Assessment Engineer that the assessment for parcels with 7+ residential units on them shall be based on exterior building area, parcel land area and parcel street frontage which is a common method of fairly and equitably spreading special benefit costs to these land uses. Further, a special benefit adj ustment factor of 0.5 will be applied to the measured exterior building area, land area and street frontage which then produces the number of assessable building area units, land area units and street frontage units. This assessment methodology directly relates to the proportionate amount of special benefit each residential parcel with 7+ units on them will receive from ODMD funded services, programs and improvements for these land uses.

3. Mixed-Use (Non-Condominium Commercial and Residential) It is the opinion of this Assessment Engineer that parcels with non-condominium mixed commercial and residential uses on them will specially benefit from PBID funded programs, services and improvements but different than those with only commercial uses on them. The residential portions of these land uses do not specially benefit from marketing and promotion activities to the extent that commercial uses do. As such, the assessment rates and applica ble assessment methodology will be applied based on each land use portion and the area of the parcel they cover. Mixed-use parcels will be assessed for the commercial use portions at commercial rates for the commercial building area, the parcel land area covered by commercial uses and the amount of direct commercial street frontage. The residential land use portions will be assessed based on the residential criteria and methodologies delineated in # 2 and 3 above.

4. Residential Condominiums
It is the opinion of this Assessment Engineer that these land uses do not specially benefit from 365

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21 marketing and promotion activities to the extent that commercial parcels and other parcels with residential units on them do. It is the opinion of this Assessment Engineer that the assessment for residential condominiums shall be based on only on interior building area which is a common method of fairly and equitably spreading special benefit costs to these unique property ownerships, subdivisions and land uses. Further, a special benefit adjustment factor of 0.5 will be applied to the measured interior building area which then produces the number of assessable building area units. This assessment methodology directly relates to the proportionate amount of special benefit each residential condominium parcel will receive from ODMD funded services, programs and improvements for these land uses.

5. Commercial Condominiums
It is the opinion of this Assessment Engineer that such units, when located solely on ground floors, shall be assessed based on actual land area covered, interior condo building area and direct street frontage or pro-rated street frontage for each unit. Multi-floor commercial condominiums shall be assessed on interior condo building area and pro-rated land area and street frontage as determined by the Assessment Engineer depending on the development configuration . If residential condominiums are part of the development, the residential portions will be assessed based on the residential criteria and methodology delineated in #1 above.

6. Publicly Owned/Occupied Parcels
Each assessable publicly (government) owned parcel and facility within ODMD will proportionately specially benefit as delineated herein from the ODMD funded supplemental services, programs and improvements, but differently than privately owned parcels. It is the opinion of this Assessment Engineer that publicly owned parcels and public facilities do not specially benefit to the same extent as privately owned parcels from PBID funded district identity/placemaking services, programs and improvements. To offset this special benefit differential, publicly owned parcels with public facilities on them will not be assessed for publicly used building areas located on these parcels. Publicly owned parcels with non -government uses on them will be assessed for building areas not occupied by government uses and facilities.

It is noted that the only publicly owned parcel not being assessed is the United States Post Office parcel on A Street. The US Attorney General has opined that Federally owned properties are exempt from local taxes and benefit assessments in accordance wit h the Supremacy Clause of the US Constitution.

As such, no direct ODMD funded special benefit services, programs and improvements will be provided adjacent to or for the special benefit of this parcel.

7. Non-Profit Owned and Occupied Parcels
Each identified and assessable non-profit owned parcel and use within ODMD will proportionately specially benefit as delineated herein from the ODMD funded supplemental services, programs and improvements, but differently than other privately owned parcels. It is the opinion of this Assessment Engineer that non-profit owned parcels and uses do not specially benefit to the same extent as other privately owned parcels from district identity/placemaking services, programs and improvements. To offset this special benefit differential, non-profit owned parcels with non-profit uses on them will not be assessed for non-profit used building areas located on these parcels. Non-profit owned parcels with “for-profit” uses on them will be assessed for building areas occupied by “for-profit” uses.

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22 8. Changes to Building or Parcel Size
Any changes in building size, parcel size and street frontage(s) as a result of new construction or demolition or land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such parcel adjustments.

9. Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Report would require a new Proposition 218 ballot procedure in order to approve any such changes.

Step 2. Quantify Total Basic Benefit Units
Taking into account all identified specially benefiting parcels within the District and their respective assessable benefit units and land use factors, the assessable quantities and assessment revenues by factor are shown in the following Tables:

Year 1 – 2024/2025 – Gross Quantities

GROSS

BLDG AREA
(SF)
# OF

ASSESSABLE

PARCELS
GROSS

LAND AREA
(SF)
GROSS
STREET

FRONTAGE
(LF)
1,277,861 432 3,262,505 30,708

Year 1 – 2024/2025 - Assessable Benefit Units

ASSESSABLE

BLDG AREA
UNITS
# OF

ASSESSABLE
PARCEL
UNITS

ASSESSABLE

LAND AREA
UNITS

ASSESSABLE
STREET

FRONTAGE
UNITS
1,171,556.50 383.50 3,133,029.41 35,405.37

Year 1 – 2024/25 Projected Assessment Revenue

BLDG
ASSMT

REVENUE
LAND 1
ASSMT

REVENUE
LAND 2
ASSMT

REVENUE
STREET

FRONTAGE
ASSMT

REVENUE
TOTAL
ASSMT

REVENUE
$161,323.33 $152,556.30 $95,870.70 $162,510.65 $572,260.98

28.1905% 26.6585% 16.7530% 28.3980% 100.00%

367

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

23 Step 3. Calculate Benefit Units for Each Property.

The number of Benefit Units for each identified benefiting parcel within the proposed renewed ODMD was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, building areas, property areas and dimensions of record for each tax parcel.

While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property -based assessments. All respective property data being used for assessment computations will be provided to each property owner in the District for their review. If a property owner believes there is an error on a parcel’s assessed quantities, the District may confirm the data with the County Assessor’s office. If District data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the District assessment may be corrected.

Step 4. Determine Assessment Formula

Based on the nature of the programs to be funded as well as other rationale outlined in Step 1 above, it is the opinion of this Engineer that the ODMD assessments will be based on building area, land area, and street frontage except as otherwise noted herein.

The proposed assessment formula is as follows:

Assessment = Assessable Building Area (Unit A) x Unit A Rate, plus Assessable Land Area (Unit B-1) x Unit B-1 Rate, plus
Assessable Land Area (Unit B-2) x Unit B-2 Rate, plus
Assessable Street Frontage (Unit C) x Unit C Rate

YEAR 1 –2024/25 Assessment Rates

BLDG
ASSMT
RATE
($/UNIT A)

LAND ASSMT
RATE 1
($/UNIT B-1)
LAND
ASSMT
RATE 2
($/UNIT B-2 )

FRONTAGE
ASSMT
RATE
($/UNIT C)
$0.1377 $397.80 $0.0306 $4.59

The complete Year 1 – 2024-25 assessment roll of all parcels to be assessed by this District is included in this Report as Appendix I.

Assessment Formula Unit Rates

Using figures from the Assessable Benefit Units Table and the Projected Assessment Revenue Table on page 22 of this Report, the assessment rates and weighted multipliers for each factor are calculated as follows:

368

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

24 Building Area Rate (Unit A)
($572,260.98 x 28.1905%)/1,171,556.50 units = $0.1377/Building Unit A

Land Area Rate (Unit B-1)
($572,260.98 x 26.6585%)/383.50 units = $397.80/Land Unit B-1

Land Area Rate (Unit B-2)
($572,260.98 x 16.7530%)/3,133,029.41 units = $0.0306/Land Unit B-2

Street Frontage Rate (Unit C)
($572,260.98 x 28.3980%)/35,405.37 units = $4.59 Street Frontage Unit C

Step 5. Estimate Total District Costs

The total projected 5-year special benefit costs for 20 25 – 2029 of the District are shown in the Table on page 15 of this Report assuming a maximum increase of 5% per year, commensurate to special benefits received by each assessed parcel.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID Section 4(b) of the California Constitution – Proposition 218)

Total Year 1 adjusted costs are estimated at $583,940. General benefits are factored at 2.0% of the total adjusted costs (see Finding 2 on pages 5-9 of this Report) with special benefits set at 9 8.0%. Article XIIID Section 4(b) of the California Constitution limits the levy of property assessments to costs attributed to special benefits only. The 2.0% general benefit cost is computed to be $ 11,679 with a resultant 98.0% special benefit limit computed at $572,261. Based on current property data and land uses, this is the maximum amount of Year 1 (20 24-25) revenue that can be derived from property assessments from the subject District.

All program costs associated with general benefits will be derived from sources other than District assessments. Sample “other” revenue sources are shown in the following Table:

Special and General Benefit Revenue Sources

Revenue Source Revenue % of Total
District Assessments (Special Benefit Costs) $572,261 98.0 % Grants, donations, sponsors, program income, etc. (General Benefit Costs $11,679 2.0% TOTAL $583,940 100.0%

369

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

25 Step 7. Calculate “Basic Unit Cost”

With a YR 1 - 2020 assessment revenue portion of the budget set at $572,261 (special benefit only), the Basic Unit Costs (rates) are shown earlier in Step 4. Since the District is proposed to be renewed for a 5-year term, maximum assessments for future years ( 2026-2029) must be set at the inception of the proposed renewed District. An annual inflationary assessment rate increase of up to 5%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the District Property Owner’s Association. The maximum assessment rates for the 5-year proposed renewed District term of 2025-2029 are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the proposed renewed District term (2025-2029).

ODMD – 5 Year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

YEAR

BLDG ASSMT
RATE
($/UNIT)
LAND
ASSMT
RATE 1
($/UNIT)
LAND
ASSMT
RATE 2
($/UNIT )

FRONTAGE
ASSMT
RATE
($/UNIT)

1 $0.1377 $397.8000 $0.0306 $4.5900

2 $0.1446 $417.6900 $0.0321 $4.8195

3 $0.1518 $438.5745 $0.0337 $5.0605

4 $0.1594 $447.3460 $0.0344 $5.3135

5 $0.1674 $456.2929 $0.0351 $5.5792

SAMPLE ASSESSMENT CALCULATION:

A 7,000 square foot lot with 50 linear feet of street frontage and a 5,000 square foot building on it

Bldg Area = 5,000 SF x $0.1377 = $ 688.50
Land Area = 7,000 SF x $0.0306 SF + $397.80 = $ 612.00 Street Frontage = 50 LF x $4.59/LF = $ 229.50
TOTAL YEAR 1 ASSESSMENT = $1,530.00

Per Month = $ 128/Month
Per Day = $4.25/Day

The complete Year 1 – 2024-25 assessment roll of all parcels to be assessed by this PBID is included in this Report as Appendix I.
370

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

26 Step 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the District are shown in this Report and the Management District Plan and were determined by applying the District assessment formula to each identified benefiting property.

Miscellaneous District Provisions

Time and Manner of Collecting Assessments:

Assessments for the Property Tax Year beginning July 1, 2024 and ending June 30, 20 29, shall be collected at the same time and in the same manner as ad valorum taxes paid to the Ventura County (Operation Years 20 25-2029). The District assessments shall appear as a separate line item on the property tax bills issued by the Ventura County Assessor. The City of Oxnard is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Management District Plan.

Bonds:

No bonds are to be issued in conjunction with this proposed renewed District.

Duration
As allowed by State PBID Law, the District will have a five (5) year operational term from January 1, 2025 to December 31, 2029. The proposed renewed District operation is expected to begin services on January 1, 2025. If the District is not renewed, services will end on December 31, 2029.

371

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

27 APPENDIX 1

ODMD
YR 1 – 2024/2025

ASSESSMENT ROLL

372

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

28 APN SITE ADDRESS
2024-25
ASSESSMENT % OF TOTAL
2010113110 202 S OXNARD BL $3,971.91 0.694%
2010160010

N OXNARD BL $703.80 0.123%
2010160020

E FOURTH ST $666.56 0.116%
2010160030

E FOURTH ST $1,877.31 0.328%
2010160040

E FOURTH ST $500.71 0.087%
2010160050

E FOURTH ST $927.18 0.162%
2010160060

E FOURTH ST $468.18 0.082%
2010160070

E FOURTH ST $789.48 0.138%
2010160080

E FOURTH ST $729.81 0.128%
2010160090

E FOURTH ST $704.57 0.123%
2010160100

E FOURTH ST $795.60 0.139%
2010160110

E FOURTH ST $983.18 0.172%
2010160120 400 S OXNARD BL $826.20 0.144%
2010160130

E FOURTH ST $1,358.64 0.237%
2010160170 344 S OXNARD BL $1,604.21 0.280%
2010160180 330 S OXNARD BL $1,818.48 0.318%
2010160190 332 S OXNARD BL $1,040.34 0.182%
2010160200 320 S OXNARD BL $2,024.80 0.354%
2010160220 300 S OXNARD BL $1,170.08 0.204%
2010160250 350 S OXNARD BL $1,175.81 0.205%
2010160260 350 S OXNARD BL $2,270.29 0.397%
2010211010 134

ENTERPRISE ST $2,040.26 0.357%
2010211040

META ST $497.77 0.087%
2010211110

E FIFTH ST $911.12 0.159%
2010211120

E FIFTH ST $772.04 0.135%
2010211130

E FIFTH ST $584.92 0.102%
2010211140

E FIFTH ST $584.92 0.102%
2010211155 135 E FIFTH ST $584.92 0.102%
2010211170 115 E FIFTH ST $1,940.32 0.339%
2010211180 111-13 E FIFTH ST $1,419.23 0.248%
2010211190 450 S OXNARD BL $1,649.16 0.288%
2010211200 446 S OXNARD BL $1,686.83 0.295%
2010211210 430 S OXNARD BL $1,688.20 0.295%
2010211225

E FIFTH ST $468.00 0.082%
2010211230

E FIFTH ST $697.50 0.122%
2010211300 136

ENTERPRISE ST $597.77 0.104%
2010211360

META ST $1,197.55 0.209%
2010211380

ENTERPRISE ST $1,407.60 0.246%
2010212010 512 S OXNARD BL $1,614.41 0.282%
2010212020 106 E FIFTH ST $1,393.77 0.244%
2010212030 114 E FIFTH ST $1,386.88 0.242%
2010212060 144 E FIFTH ST $1,318.03 0.230%
2010212070 154 E FIFTH ST $1,479.13 0.258%
2010212140 127 E SIXTH ST $1,371.03 0.240%
2010212150 550 S OXNARD BL $3,128.24 0.547%
2010212165 604 S OXNARD BL $1,698.68 0.297%
2010212170 546 S OXNARD BL $1,743.44 0.305%
2010212180 532 S OXNARD BL $1,032.75 0.180%
2010212190 528 S OXNARD BL $1,063.35 0.186%
2010212200 523

META ST $784.13 0.137%
2010212230 128 E FIFTH ST $1,249.18 0.218%
2010212260 136 E FIFTH ST $1,899.51 0.332%
2010212270 511

META ST $3,959.85 0.692%
373

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

29 2010213010 200 E FIFTH ST $1,243.32 0.217%
2010213020 204 E FIFTH ST $754.63 0.132%
2010213030 210 E FIFTH ST $935.01 0.163%
2010213075 238 E FIFTH ST $582.50 0.102%
2010213080

META ST $1,256.68 0.220%
2010213090 536

META ST $1,325.65 0.232%
2010213100 538

META ST $684.09 0.120%
2010213110 235 E SIXTH ST $1,531.93 0.268%
2010213120 209 E SIXTH ST $106.99 0.019%
2010213130

E SIXTH ST $1,153.62 0.202%
2010213140 544

META ST $602.99 0.105%
2010213150

META ST $566.12 0.099%
2010213160 214-228 E FIFTH ST $2,629.99 0.460%
2010214010

ENTERPRISE ST $844.56 0.148%
2010214020 200

ENTERPRISE ST $3,294.18 0.576%
2010214030 480

META ST $2,309.08 0.404%
2010214040 235 E FIFTH ST $2,897.16 0.506%
2010271030 638

META ST $684.09 0.120%
2010271040 634

META ST $646.43 0.113%
2010271060 616

META ST $703.80 0.123%
2010271070 612

META ST $909.59 0.159%
2010271080 600

META ST $1,279.08 0.224%
2010271090

E SIXTH ST $627.30 0.110%
2010271100 220 E SIXTH ST $856.80 0.150%
2010271110 224 E SIXTH ST $856.80 0.150%
2010271160 235 E SEVENTH ST $883.48 0.154%
2010271170 234 E SIXTH ST $1,463.63 0.256%
2010271180 650

META ST $2,957.18 0.517%
2010272010 155 E SEVENTH ST $1,457.33 0.255%
2010272020

E SEVENTH ST $642.60 0.112%
2010272030 141 E SEVENTH ST $642.60 0.112%
2010272040 131 E SEVENTH ST $887.40 0.155%
2010272050 125 E SEVENTH ST $887.40 0.155%
2010272060 658 S OXNARD BL $1,797.75 0.314%
2010272070 656 S OXNARD BL $841.50 0.147%
2010272080 650 S OXNARD BL $841.50 0.147%
2010272090 638 S OXNARD BL $1,063.35 0.186%
2010272100 626 S OXNARD BL $1,736.55 0.303%
2010272110 620 S OXNARD BL $992.40 0.173%
2010272120 610-612 S OXNARD BL $1,361.04 0.238%
2010272140 128 E SIXTH ST $627.30 0.110%
2010272150 128 E SIXTH ST $1,906.38 0.333%
2010272160 140 E SIXTH ST $844.18 0.148%
2010272170 150 E SIXTH ST $856.80 0.150%
2010272180 154 E SIXTH ST $1,487.93 0.260%
2010272190 629

META ST $55.08 0.010%
2010272200

META ST $589.05 0.103%
2010272210

META ST $474.30 0.083%
2010272220 633

META ST $1,814.58 0.317%
2010272230 600 S OXNARD BL $1,832.36 0.320%
2010360110 126 E SEVENTH ST $1,751.61 0.306%
374

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

30 2020052060 143 S B ST $1,392.30 0.243%
2020052070 S B ST $841.50 0.147%
2020052080 S B ST $1,190.34 0.208%
2020052090 W SECOND ST $691.56 0.121%
2020054010 216 W FIRST ST $1,219.41 0.213%
2020054020 111 S A ST $841.50 0.147%
2020054030 S A ST $841.50 0.147%
2020054040 S A ST $841.50 0.147%
2020054050 141 S A ST $3,157.92 0.552%
2020054060 155 S A ST $3,511.35 0.614%
2020054090 136 S B ST $841.50 0.147%
2020054100 122 S B ST $242.21 0.042%
2020054110 118 S B ST $962.37 0.168%
2020054120 110 S B ST $185.90 0.032%
2020054130 254 W FIRST ST $1,828.35 0.319%
2020054145 B ST $2,371.50 0.414%
2020056030 141 S OXNARD BLVD $2,149.65 0.376%
2020056040 155 S OXNARD BLVD $2,181.78 0.381%
2020056060 156 S A ST $963.90 0.168%
2020056080 150 S A ST $895.05 0.156%
2020056090 144 S A ST $841.50 0.147%
2020056100 138 S A ST $963.90 0.168%
2020056110 134 S A ST $791.78 0.138%
2020056120 132 S A ST $1,530.00 0.267%
2020056130 122 S A ST $1,075.59 0.188%
2020056140 110 S A ST $1,461.15 0.255%
2020056150 136 W FIRST ST $2,034.90 0.356%
2020056160 135 W SECOND ST $2,379.15 0.416%
2020056170 111 S OXNARD BLVD $3,534.30 0.618%
2020081010 201 S C ST $1,484.10 0.259%
2020081020 211 S C ST $841.50 0.147%
2020081100 260 S D ST $1,257.66 0.220%
2020081160 208 S D ST $841.50 0.147%
2020081170 200 S D ST $1,484.10 0.259%
2020081180 231 S C ST $856.80 0.150%
2020081190

S C ST $856.80 0.150%
2020081200

S C ST $856.80 0.150%
2020081210 251 S C ST $856.80 0.150%
2020081220

S C ST $856.80 0.150%
2020081230

W THIRD ST $1,499.40 0.262%
2020081240

S D ST $639.54 0.112%
2020081250

S D ST $856.80 0.150%
2020081260

S D ST $856.80 0.150%
2020081270

S D ST $856.80 0.150%
2020081280

S D ST $856.80 0.150%
2020081290 210 S D ST $856.80 0.150%
2020083030 321 S C ST $1,381.28 0.241%
2020083040 327 S C ST $68.85 0.012%
2020083050 331 S C ST $1,668.82 0.292%
2020083060 345 S C ST $1,202.15 0.210%
2020083070 361 S C ST $1,332.63 0.233%
375

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

31 2020083210 301 S C ST $2,381.97 0.416%
2020083220 418 W THIRD ST $918.00 0.160%
2020085030 431 S C ST $843.41 0.147%
2020085040 437 S C ST $904.70 0.158%
2020085050 441 S C ST $3,681.58 0.643%
2020085190 418 W FOURTH ST $845.33 0.148%
2020085200 401 S C ST $2,044.08 0.357%
2020091100

S C ST $841.50 0.147%
2020091370 351 W THIRD ST $1,927.80 0.337%
2020091380

W SECOND ST $1,063.96 0.186%
2020091390 206 W SECOND ST $12,485.99 2.182%
2020091400 214 W SECOND ST $3,907.38 0.683%
2020092030

S B ST $483.48 0.084%
2020092040

S B ST $755.82 0.132%
2020092050 343 S B ST $1,296.60 0.227%
2020092060 351 S B ST $1,322.62 0.231%
2020092070 361 S B ST $2,448.00 0.428%
2020092120 320 S C ST $841.50 0.147%
2020092130 310 S C ST $1,365.59 0.239%
2020092140 330 W THIRD ST $2,310.30 0.404%
2020092170 300 W THIRD ST $6,359.32 1.111%
2020092180 344 S C ST $2,180.25 0.381%
2020092190 350 S C ST $3,028.47 0.529%
2020094010 301 S A ST $2,092.12 0.366%
2020094020 309 S A ST $1,226.45 0.214%
2020094035 325 S A ST $2,649.96 0.463%
2020094040 327-337 S A ST $2,099.16 0.367%
2020094050 339 S A ST $1,276.02 0.223%
2020094060 345 S A ST $1,523.88 0.266%
2020094080 361 S A ST $2,073.12 0.362%
2020094140 324 S B ST $1,373.94 0.240%
2020094155

S B ST $416.16 0.073%
2020094160

S B ST $416.16 0.073%
2020094170

S B ST $823.14 0.144%
2020094185

W THIRD ST $789.48 0.138%
2020094195

S B ST $1,536.12 0.268%
2020094205

S B ST $434.52 0.076%
2020094215 365 S B ST $1,891.08 0.330%
2020094225

S B ST $434.52 0.076%
2020094235

S B ST $1,248.48 0.218%
2020094240 355 S A ST $1,702.31 0.297%
2020095075 254 S A ST $841.50 0.147%
2020095085 242 S A ST $841.50 0.147%
2020095090 228 S A ST $1,474.92 0.258%
2020095100 220 S A ST $1,357.88 0.237%
2020095110 210 S A ST $841.50 0.147%
2020095120 200 S A ST $4,435.29 0.775%
2020095140 221 S OXNARD $2,785.37 0.487%
2020095150 229 S OXNARD $1,686.83 0.295%
2020095160 235 S OXNARD $1,686.83 0.295%
2020096035 357 S OXNARD BL $1,568.25 0.274%
376

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

32 2020096040 350 S A ST $0.00 0.000%
2020096050 336 S A ST $1,754.91 0.307%
2020096060 326 S A ST $1,402.70 0.245%
2020096070 318 S A ST $1,530.00 0.267%
2020096080 300 S A ST $3,265.97 0.571%
2020096095

S OXNARD BL $1,058.76 0.185%
2020096105 321 S OXNARD BL $2,677.42 0.468%
2020096110 349 S OXNARD BL $1,363.08 0.238%
2020096125

S OXNARD BL $786.11 0.137%
2020101130 422 S C ST $1,698.30 0.297%
2020101190 329 W FIFTH ST $711.60 0.124%
2020101205

S C ST $553.86 0.097%
2020101215

S C ST $1,940.04 0.339%
2020101225

W FOURTH ST $410.81 0.072%
2020101235

W FOURTH ST $583.70 0.102%
2020101255 425 S B ST $499.55 0.087%
2020101270

W FIFTH ST $412.34 0.072%
2020101290

W FIFTH ST $451.35 0.079%
2020101310

W FIFTH ST $412.34 0.072%
2020101330

W FIFTH ST $412.34 0.072%
2020101355

W FIFTH ST $412.34 0.072%
2020101360 424 S C ST $407.35 0.071%
2020101370

W FIFTH ST $421.52 0.074%
2020101405

S B ST $457.62 0.080%
2020101415 425 S B ST $4,009.58 0.701%
2020101420 314 W FOURTH ST $1,366.11 0.239%
2020101435

W FOURTH ST $423.81 0.074%
2020101445 405 S B ST $2,312.38 0.404%
2020102010 500 S C ST $5,214.94 0.911%
2020103025

W FIFTH ST $795.60 0.139%
2020103090

W SIXTH ST $795.60 0.139%
2020103100 560 S C ST $2,269.14 0.397%
2020103115 544 S C ST $501.08 0.088%
2020103120 338 W FIFTH ST $2,043.27 0.357%
2020103130 319 W SIXTH ST $872.10 0.152%
2020103145

W SIXTH ST $780.30 0.136%
2020103175

W FIFTH ST $405.83 0.071%
2020103185

W FIFTH ST $589.92 0.103%
2020103195 301 E SIXTH ST $2,296.96 0.401%
2020103205

W SIXTH ST $668.30 0.117%
2020103210 318 W FIFTH ST $1,205.64 0.211%
2020103225

W FIFTH ST $423.81 0.074%
2020103235

S B ST $518.67 0.091%
2020103245 300 W FIFTH ST $2,534.45 0.443%
2020104015 401 S A ST $3,886.20 0.679%
2020104165 400 S B ST $2,829.63 0.494%
2020104395 445 S A ST $9,008.56 1.574%
2020104405 445 S A ST $1,202.18 0.210%
2020104415 445 S A ST $2,469.70 0.432%
2020104425 445 S A ST $2,120.06 0.370%
2020104435 445 S A ST $3,524.29 0.616%
377

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

33 2020105100 545 S A ST $7,328.70 1.281%
2020105120 538 S B ST $619.65 0.108%
2020105170

W SIXTH ST $507.96 0.089%
2020105180

S B ST $2,261.58 0.395%
2020105195

S B ST $406.98 0.071%
2020105205

S B ST $610.47 0.107%
2020105210

S B ST $406.98 0.071%
2020105220

S B ST $610.47 0.107%
2020105235

S B ST $425.34 0.074%
2020105245

S B ST $1,035.81 0.181%
2020105260

W FIFTH ST $489.60 0.086%
2020105275 270 W FIFTH ST $1,836.00 0.321%
2020105295 200 W FIFTH ST $2,851.16 0.498%
2020105305

S A ST $662.49 0.116%
2020105325 529 S A ST $2,705.65 0.473%
2020105335 505 S A ST $2,378.20 0.416%
2020106015 403 S OXNARD BL $1,311.21 0.229%
2020106035

S OXNARD BL $604.35 0.106%
2020106065

W FIFTH ST $833.85 0.146%
2020106120 424 S A ST $1,063.73 0.186%
2020106130 420 S A ST $1,758.58 0.307%
2020106140 400-410 S A ST $3,847.61 0.672%
2020106245

S OXNARD BL $664.02 0.116%
2020106250 425 N OXNARD BL $901.17 0.157%
2020106265

W FOURTH ST $483.17 0.084%
2020106275

W FOURTH ST $716.13 0.125%
2020106285

W FOURTH ST $434.52 0.076%
2020106295 421 S OXNARD BL $691.56 0.121%
2020106310

W FIFTH ST $454.56 0.079%
2020106320

W FIFTH ST $569.71 0.100%
2020106355 105 W FIFTH ST $2,082.33 0.364%
2020106370 428 S A ST $1,067.18 0.186%
2020106380 434 S A ST $1,067.30 0.187%
2020106390 438 S A ST $1,050.12 0.184%
2020106400 143 W FIFTH ST $2,211.28 0.386%
2020106410 141 W FIFTH ST $2,620.19 0.458%
2020107050

W FIFTH ST $601.14 0.105%
2020107060

W FIFTH ST $615.83 0.108%
2020107070

W FIFTH ST $615.83 0.108%
2020107080 104 W FIFTH ST $2,409.37 0.421%
2020107100 531 S OXNARD BL $1,019.75 0.178%
2020107110 545 S OXNARD BL $2,205.11 0.385%
2020107120 559 S OXNARD BL $604.35 0.106%
2020107135 563 S OXNARD BL $1,361.70 0.238%
2020107160 534 S A ST $1,303.56 0.228%
2020107170 528 S A ST $1,545.15 0.270%
2020107195

W FIFTH ST $572.22 0.100%
2020107205

W FIFTH ST $440.64 0.077%
2020107215

S OXNARD BL $439.11 0.077%
2020107225

S OXNARD BL $558.91 0.098%
2020107235 150 W FIFTH ST $3,147.21 0.550%
378

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

34 2020107240 560 S A ST $3,222.18 0.563%
2020107250 544-550 S A ST $1,640.77 0.287%
2020131030 519 S C ST $895.05 0.156%
2020131040 521-523 S C ST $1,747.57 0.305%
2020131050 535 S C ST $1,855.13 0.324%
2020131060 543-545 S C ST $1,704.21 0.298%
2020131070 555 S C ST $1,609.56 0.281%
2020131170 509-511 S C ST $1,232.42 0.215%
2020131190

S C ST $405.30 0.071%
2020131220

W FIFTH ST $642.60 0.112%
2020131230 515 S C ST $1,386.18 0.242%
2020133010 416 W SIXTH ST $1,484.10 0.259%
2020133020 613 S C ST $1,013.63 0.177%
2020133030 619 S C ST $841.50 0.147%
2020133040 625 S C ST $841.50 0.147%
2020133050 637 S C ST $94.12 0.016%
2020133060 643 S C ST $841.50 0.147%
2020133210 699 S C ST $3,519.89 0.615%
2020135025 711 S C ST $3,913.59 0.684%
2020135035 761 S C ST $6,364.80 1.112%
2020141050 333 W SEVENTH ST $1,927.80 0.337%
2020141060 644 S C ST $1,032.75 0.180%
2020141070 642 S C ST $619.65 0.108%
2020141080 634-636 S C ST $1,199.52 0.210%
2020141090 630 S C ST $1,199.52 0.210%
2020141100 618 S C ST $43.17 0.008%
2020141110 340 W SIXTH ST $1,927.80 0.337%
2020141155 687 S B ST $88.61 0.015%
2020141165 685 S B ST $83.03 0.015%
2020141175 683 S B ST $83.03 0.015%
2020141185 681 S B ST $88.61 0.015%
2020141195 673 S B ST $83.93 0.015%
2020141205 671 S B ST $82.90 0.014%
2020141215 669 S B ST $82.90 0.014%
2020141225 667 S B ST $82.90 0.014%
2020141235 665 S B ST $82.90 0.014%
2020141245 663 S B ST $82.90 0.014%
2020141255 661 S B ST $83.93 0.015%
2020141265 655 S B ST $83.93 0.015%
2020141275 653 S B ST $82.90 0.014%
2020141285 651 S B ST $83.93 0.015%
2020141295 645 S B ST $83.93 0.015%
2020141305 643 S B ST $82.90 0.014%
2020141315 641 S B ST $83.93 0.015%
2020141325 633 S B ST $83.93 0.015%
2020141335 631 S B ST $82.90 0.014%
2020141345 629 S B ST $82.90 0.014%
2020141355 627 S B ST $82.90 0.014%
2020141365 625 S B ST $82.90 0.014%
2020141375 623 S B ST $82.90 0.014%
2020141385 621 S B ST $83.93 0.015%
379

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

35 2020141395 611 S B ST $88.61 0.015%
2020141405 613 S B ST $83.03 0.015%
2020141415 615 S B ST $83.03 0.015%
2020141425 617 S B ST $88.61 0.015%
2020142160 785 S B ST $10,611.61 1.854%
2020143015 601 S A ST $3,376.40 0.590%
2020143025 623 S A ST $1,524.08 0.266%
2020143030 629 S A ST $1,015.00 0.177%
2020143040 635 S A ST $877.84 0.153%
2020143050 637 S A ST $619.65 0.108%
2020143140 246 W SIXTH ST $3,938.83 0.688%
2020143230 640 S B ST $1,904.85 0.333%
2020143240 237 W SEVENTH ST $1,689.18 0.295%
2020143250 235 W SEVENTH ST $1,260.40 0.220%
2020144170 230 W SEVENTH ST $951.05 0.166%
2020144180 220 W SEVENTH ST $1,110.52 0.194%
2020144190 210 W SEVENTH ST $1,170.21 0.204%
2020144200 200 W SEVENTH ST $1,023.37 0.179%
2020144210 710 S B ST $1,079.71 0.189%
2020144220 720 S B ST $560.50 0.098%
2020144230 730 S B ST $1,781.51 0.311%
2020144240 715 S A ST $560.16 0.098%
2020144250 721 S A ST $1,294.47 0.226%
2020144260 711 S A ST $947.72 0.166%
2020144270 740 S B ST $1,049.76 0.183%
2020144280 731 S A ST $952.98 0.167%
2020144290 750 S B ST $853.07 0.149%
2020144300 741 S A ST $981.33 0.171%
2020145010 112 W SIXTH ST $3,468.51 0.606%
2020145030 637 S OXNARD BL $1,221.29 0.213%
2020145050 653 S OXNARD BL $1,795.82 0.314%
2020145060 663 S OXNARD BL $1,179.71 0.206%
2020145100 630 S A ST $841.50 0.147%
2020145110 622 S A ST $1,667.70 0.291%
2020145120 618 S A ST $841.50 0.147%
2020145130 608 S A ST $1,557.54 0.272%
2020145140 120 W SIXTH ST $1,484.10 0.259%
2020145190

S A ST $841.50 0.147%
2020145200 631 S OXNARD BL $810.90 0.142%
2020145210 629 S OXNARD BL $708.54 0.124%
2020145220 658 S A ST $4,770.07 0.834%
2020145230 643 S OXNARD BL $1,198.11 0.209%
2020145240 645 S OXNARD BL $1,327.28 0.232%
2020146010 110 W SEVENTH ST $1,935.45 0.338%
2020146020 705 S OXNARD BL $1,120.73 0.196%
2020146030 711 S OXNARD BL $1,051.88 0.184%
2020146040 715 S OXNARD BL $742.05 0.130%
2020146050 719 S OXNARD BL $948.60 0.166%
2020146070 733 S OXNARD BL $1,335.95 0.233%
2020146080 737 S OXNARD BL $776.48 0.136%
2020146090 745 S OXNARD BL $604.35 0.106%
380

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

36 2020146100 755 S OXNARD BL $1,017.45 0.178%
2020146110 749 S OXNARD BL $604.35 0.106%
2020146120

S OXNARD BL $604.35 0.106%
2020146130 761 S OXNARD BL $879.75 0.154%
2020146140 752 S A ST $2,747.34 0.480%
2020146150 744 S A ST $1,428.94 0.250%
2020146180 700 S A ST $2,280.28 0.398%
2020146190

S OXNARD BL $604.35 0.106%
2020146200

S OXNARD BL $604.35 0.106%
2020146210 723 S OXNARD BL $604.35 0.106%
2020146220 708 S A ST $4,889.15 0.854%
2020380015 651 S A ST $118.49 0.021%
2020380025 653 S A ST $96.05 0.017%
2020380035 655 S A ST $120.69 0.021%
2020380045 657 S A ST $120.69 0.021%
2020380055 659 S A ST $96.05 0.017%
2020380065 661 S A ST $118.49 0.021%
2020380075 211 W SEVENTH ST $120.69 0.021%
2020380085 213 W SEVENTH ST $96.05 0.017%
2020380095 215 W SEVENTH ST $118.49 0.021%
2020380105 645 S A ST $120.69 0.021%
2020380115 643 S A ST $95.36 0.017%
2020380125 641 S A ST $118.49 0.021%
$572,260.99 100.000%
381

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

37 APPENDIX 2

ODMD

BOUNDARY MAP

382

OXNARD DOWNTOWN MANAGEMENT DISTRICT – ASSESSMENT ENGINEER’S REPORT

38 T T
383

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

OXNARD DOWNTOWN MANAGEMENT DISTRICT

RENEWAL

MANAGEMENT DISTRICT PLAN

Being Renewed for a 5 Year Term Pursuant to
California Streets and Highways Code Section 36600 et seq.

Property & Business Improvement District Act of 1994, as amended

APRIL 10, 2024

V 3.0

384

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN 2 MANAGEMENT DISTRICT PLAN

Table of Contents

I. Management District Plan Summary – page 3

II. PBID Boundaries – page 5

III. Proposed 5 Year PBID Work Plan and Budget – page 7

IV. Proposed PBID Assessment Formula – page 15

V. Publicly Owned Parcels – page 21

VI. PBID District Governance – page 22

VII. Proposed Rules and Regulation – page 23

VIII. Other Items – page 23

IX. Plan Author – page 23

X. Implementation Timetable – page 23

Appendix 1: Year 1 – 2024/25 PBID Assessment Roll
Appendix 2: Map of ODMD
Attachment 1: Certified Assessment Engineer’s Report

385

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

3 I. MANAGEMENT DISTRICT PLAN SUMMARY

The Oxnard Downtown Management District is a property-based Business Improvement District (PBID) being renewed for a 5 year period by a consortium of business and property owners within Downtown Oxnard. The District was originally formed in 2001 for a 5 year period. It was renewed and expanded in 2006 for another 5 year term, renewed for a 3 year term in 20 11 and renewed for 5 year term s in 2014 and 2019. The purpose of this District is to continue to provide and manage supplemental services and improvements for this important business center, including a civil sidewalks (“clean and safe”) program, district identity and image enhancement and a program of installing and upgrading placemaking and physical amenities throughout the greater Downtown area. The PBID is a unique benefit assessment district that will enable the District property/business owners and residents, working as a unit, to continue to fund needed property and business related services, programs and improvement projects above what can and is provided by the City of Oxnard.

Name: The name of the PBID is the Oxnard Downtown Management District (ODMD).

Location: The PBID is located in the center of Oxnard and is bounded roughly by First and Second Streets on the north, the Railroad tracks on the east, Eighth Street on the south and C and D Streets on the west. There is one benefit zone (See attached map).

Zones: There is one benefit zone within the renewed ODMD.

Services: Civil Sidewalks, District Identity/Placemaking and Organization.

Finance: Benefit assessment of real property (432 parcels). No bonds shall be issued to fund ODMD programs.

Budget: PBID assessment revenue for Year 1 (2024-25) is projected to be $572,261. It is noted that the Assessment Engineer has determined t hat general benefits equate to 2.0% of the total adjusted PBID program costs of $583,940, or $11,679. (See attached Engineer’s Report for more details on benefit costs). General benefit costs shall be derived from non -assessment revenue sources such as grants, program income, credits, interest, memberships and other sources.

Year 1 – 2025 PROPOSED BUDGET (ASSESSMENT REVENUES ONLY)

CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING ORGANIZATION TOTAL
$335,000 $82,000 $155,261 $572,261

58.5397% 14.3291% 27.1312% 100.000%

Benefits: “General Benefit” is defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special Benefit” as d efined by the California State Constitution 386

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

4 means a distinct benefit over and above general benefits conferred on real property located in the ODMD or to the public at large.

Assessment Formula: There is one benefit zone in the ODMD. (A map showing the ODMD boundaries is shown on Appendix 2 attached to this Plan). Year 1 property assessment rates per parcel are as follows:

YEAR 1 –2024/25 Assessment Rates

BLDG
ASSMT
RATE
($/UNIT A)

LAND ASSMT
RATE 1
($/UNIT B-1)
LAND
ASSMT
RATE 2
($/UNIT B-2 )

FRONTAGE
ASSMT
RATE
($/UNIT C)
$0.1377 $397.80 $0.0306 $4.59

Assessment Formula Special Circumstances:

Lower Tier Residential Uses ( 1-6 residential units including residential condominiums) : Assess only building area and at 50% of commercial building area rate with no assessment for land area or street frontage.

Upper Tier Residential Uses (7+ residential units): Assess building area, land area and street frontage, all at 50% of commercial rates.

Mixed-Use Parcels: Assess commercial portions of parcel at building area, land area and street frontage at commercial rates for parcel area covered by commercial uses. Assess residential portions based on the criteria above based on the “tier” (i.e. number of residential units).

Government/Non-Profit Owned and Occupied : Assess only for land area and street frontage at commercial rates with no assessment for building area.

Cap: Assessment increases are capped at a maximum of 5% per year, subject to approval by the ODMD Property Owner Association Board of Directors.

Renewal: PBID renewal is a two -step process. First, petitions signed by PBID property owners representing at least 50% of the total assessment to be levied must be secured. Second, property owners will be sent a ballot to vote on the PBID renewal. Returned ballots in support of the PBID renewal must outweigh those in opposition based on the amount of assessment to be levied.

Duration: The renewed ODMD will have a term of five (5) years. After five years, the petition and balloting process must be repeated in order to renew the ODMD and levy assessments again at that time.

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OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

5 II. PBID BOUNDARIES

Setting:

The proposed renewed ODMD is centrally located in the center of Oxnard and centered along A Street from First Street to Eighth Street. ODMD is bounded roughly by First and Second Streets on the north, the Railroad tracks on the east, Eighth Street on the south and C and D Streets on the west. There is one benefit zone within ODMD (See attached map in Appendix 2).

General Boundary Description
ODMD includes 4 33 parcels of which 4 32 are identified assessed parcels in a 3 2 block area of Historic Downtown Oxnard. The property uses within the boundaries of the proposed renewed ODMD which will receive special benefits from PBID funded programs and services are currently a unique mix of retail, restaurant, service, office, gove rnment, residential and parking. ODMD boundaries were selected to incorporate the core Downtown parcels and businesses . There is one benefit zone within the proposed renewed District. It is noted that ODMD is being expanded to the north to First Street from the centerline of B Street to Oxnard Boulevard. This two block area includes a combination of commercial parcels associated with Downtown Oxnard along with mixed use parcels with residential rental units.

Detailed Boundary Description
More specifically, the ODMD is described as follows:

Beginning at the intersection of the centerlines of Second Street and D Street; thence east along said centerline of Second Street to the centerline of B Street; thence north along said centerline of B Street to the centerline of First Street; thence east along said centerline of First Street to the east property line of Oxnard Boulevard; thence south along said east property line of Oxnard Boulevard to the tangent intersection point with the west properly line of the railroad right of way; thence southea st and south along said west property line of the railroad right of way to the centerline of Fifth Street; thence west along said centerline of Fifth Street to the prolongation of the east property line of the public alley lying east of and parallel to Met a Street; thence south along said east properly line of said public alley to the centerline of Seventh Street; thence west along said centerline of Seventh Street to the east property line of parcel APN 202 -0-360-110; thence south along said east property line of said parcel APN 202-0-360-110 to the south property line of said parcel APN 202-0-360-110; thence west along said south property line of said parcel APN 202 -0-360-110 to the west property line of said parcel APN 202 -0-360-110; thence north along sa id west property line of said parcel APN 202-0-360-110 to the centerline of Seventh Street; thence west along said centerline of Seventh Street to the centerline of Oxnard Boulevard; thence south along said centerline of Oxnard Boulevard to the centerline of Eighth Street; thence west along said centerline of Eighth Street to the centerline of D Street; thence north along said centerline of D Street to the centerline of Seventh Street; thence east along said centerline of Seventh Street to the prolongation of the west property line of the public 388

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

6 alley lying east of and parallel to D Street; thence north along said west property line of said public alley to the centerline of Third Street; thence west along said centerline of Third Street to the centerline of D Street; thence north along said centerline of D Street to the point of beginning.

Benefit Zones
There is one benefit zone within the proposed renewed District.

District Boundary Rationale
The ODMD boundaries encompass the heart of Downtown Oxnard. These parcels showcase a unique array of pedestrian oriented uses - retail, restaurant, service, office, government, residential and parking that form what is considered the “cohesive urban fabric” of the evolving mixed-use Downtown center.

The District boundaries were chosen to generally include parcels that comprise the commercial core that attracts pedestrians and visitors to Downtown Oxnard. Also included are current as well as future in-town residential parcels. Parcels adjacent to the north, south and east of ODMD are not part of the District's commercial and in-town residential pedestrian core and have different marketing needs than those in the ODMD. These outside parcels and uses require different services than those in the ODMD and would not specially benefit from the increased pedestrian oriented programs, services and improvements offered by the ODMD. Therefore, they have not been included within the ODMD boundaries.

Surrounding parcels to the north, south and west that are zoned solely residential and/or with residential uses have not been included within the boundaries of the PBID. The Property and Business Improvement District Law of 1994, California Streets & Highway Code § 36632 states, “Properties zoned solely for residential use……… are conclusively presumed not to benefit from the improvements and service funded through these assess ments and shall not be subject to any assessment …..”. For these reasons, no residentially zoned parcels or residential uses north, south or west of the proposed renewed District are included in the ODMD boundaries.

A list of all parcels included in the proposed renewed ODMD is shown as Appendix 1, attached to this Plan identified by their respective Ventura County assessor parcel number. The boundary of the proposed renewed ODMD is shown on the map of the proposed renewed ODMD attached as Appendix 2 to this Plan.

All identified assessed parcels within the above -described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Plan and in the Management District Plan. All ODMD funded services, programs and improvements provided within the above described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District. Each assessed parcel within ODMD will proportionately specially benefit from the District funded programs and services (i.e. civil sidewalks, district identity/placemaking and organization). These services, programs and improvements are intended to improve commerce, employment, livability, rents and oc cupancy rates and investment viability of individually assessed parcels and businesses/residential units on them within ODMD.

389

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

7 District services, activities and programs confer special benefits on each and every individually assessed parcel by deterring crime, improving aesthetics and marketing goods and services available from individually assessed parcels and the businesses/occu pants on them within the District, all considered necessary in a competitive properly managed mixed -use business district. All District funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Oxnard and are only provided for the special benefit of assessed parcels within the boundaries of the proposed renewed ODMD.

The District includes 433 parcels of which 432 are identified as assessable within one Benefit Zone and which are listed in the Assessment Roll included as Appendix 1. For further information, a District Boundary Map is included as Appendix 2.

III. Proposed 5 Year PBID Work Plan and Budget

Overview

The Programs and activities to be funded by the ODMD include civil sidewalks, district identity/placemaking and organization . The property uses within the boundaries of the District that will receive special benefits from District funded programs, services and improvements are currently a unique mix of retail, restaurant, service, office, government, residential and parking. District funded activities are primarily designed to provide special benefits as described below to identified assessed parcels and array of land uses within the boundaries of the District.

These benefits are particular and distinct to each and every identified assessed parcel within the ODMD and are not provided to non -assessed parcels outside of the District. These programs, services and improvements will only be provided to each individual assessed parcel within the District boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

In the case of the ODMD, the very nature of the purpose of this District is to fund supplemental programs, services and improvements to assessed parcels within the District boundaries above and beyond what is being currently funded either via normal tax su pported methods or other funding sources. The City of Oxnard does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the District are for services, programs and improvements directly benefiting each individual assessed parcel within the District. No District funded services, activities or programs will be provided outside of the District boundaries.

The projected program special benefit cost allocation of the District assessment revenues for the 5 -year District term assuming a 5% maximum annual assessment rate increase is shown in the Table on page 12 of this Plan.

WORK PLAN DETAILS
The programs, services and improvements to be provided by the ODMD include civil sidewalks, district identity/placemaking and organization . Each of these work plan elements are designed to add to the 390

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

8 cohesive mixed-use urban fabric of Downtown Oxnard and assist in its economic success and vitality. The assessed parcels in the PBID will specially benefit from the District programs in the form of increased commerce and vitality through meeting the ODMD goals: to improve security, cleanliness, beautification, landscaping, livability and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each assessed parcel.

The following programs, services and improvements are proposed by the ODMD to specially benefit each and every individually assessed parcel within the District boundaries. ODMD services, programs and improvements will not be provided to parcels outside the District boundary.

Civil Sidewalks
Civil Sidewalks includes maintenance and safety (“clean and safe”) services in public sidewalk areas adjacent to assessed parcels in ODMD. The maintenance portion of the Civil Sidewalks category includes regular maintenance of public areas adjacent to each assessed parcel for the special benefit of each identified and assessed parcel and land use within ODMD. These services include:

• Clean Team 6-days per week
• litter and illegal dumping pickup
• graffiti and illegal sticker/poster removal
• check/empty 130+ sidewalk trash bins
• check, sweep, and secure trash enclosures
• removal of transient discards, including shopping carts, bio-waste • sidewalk scrubbing/steam cleaning
• curb line block face sweeping
• tree pruning
• weed abatement
• visitor assistance

The maintenance portion of the Civil Sidewalks work plan component is designed to specially benefit and improve the aesthetic appeal of each identified and assessed parcel within the PBID and attract more customers, clients, employees, tenants and investors which potentially would increase business volumes, sales transactions, occupancies, rental income and attractiveness of investments. Maintenance services will only be provided for identified and assessed parcels located within the PBID boundaries.

The maintenance portion of the Civil Sidewalks work plan component will assist in creating a clean environment for each assessed parcel in the District. A dirty environment deters commerce and may fail to attract patrons, residents and visitors, and reduce rents and occupancies. For parcels with general commercial, retail, restaurant, office and commercial parking uses , this activity is designed to increase vehicular and pedestrian traffic, increase commerce and customer activity, attract and retain new bus iness and patrons, and may increase commercial rents and commercial occupancies for the assessed parcels within 391

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

9 the BID boundaries. In the case of assessed publicly/non-profit owned/occupied parcels , District funded clean programs and services provide these parcels with enhanced facility entrances and perimeters and better public/non-profit facilities in turn for their employees, visitors, vendors and users of these public/non- profit facilities. Further, in the case of assessed residential use parcels, District funded clean programs and services are designed to improve the appearance of entrances and perimeters for the special benefit of each assessed residential parcel and in turn their tenants, visitors and owners, which, in turn, may increase occupancies and rental income. Each assessed parcel will specially benefit from the clean programs and services which will only be provided to, and for the direct special benefit of, each identified assessed parcel within the proposed renewed District boundaries.

Safety
The safety portion of the Civil Sidewalks work plan category includes regular security of areas adjacent to each assessed parcel for the special benefit of each identified and assessed parcel and land use within ODMD. The safety portion of the Civil Sidewalks work plan component includes:

• daily bike & truck Safety Patrol
• loitering & trespassing subject removal
• Crime prevention awareness campaigns
• street light outage reporting and repair orders

The safety portion of the Civil Sidewalks work plan component is designed to specially benefit and improve the security of each identified and assessed parcel within the PBID and attract more customers, clients, employees, tenants and investors which poten tially would increase business volumes, sales transactions, occupancies, rental income and attractiveness of investments. Safety services will only be provided for identified and assessed parcels located within the proposed renewed PBID boundaries.

The safety portion of the Civil Sidewalks work plan component will assist in creating a safe and secure environment for each assessed parcel in the District. An unsafe environment deters commerce and may fail to attract patrons, residents and visitors, and reduce rents and occupancies. For parcels with general commercial, retail, restaurant, office and commercial parking uses , this activity is designed to increase vehicular and pedestrian traffic, increase commerce and customer activity, attract and retain new business and patrons, and may increase commercial rents and commercial occupancies for the assessed parcels within the BID boundaries. In the case of assessed publicly/non-profit owned/occupied parcels , District funded safe programs and services provide these parcels with safer and enhanced facility entrances and perimeters and better public/non -profit facilities in turn for their employees, visitors, vendors and users of these public/non-profit facilit ies. Further, in the case of assessed residential use parcels, District funded safe programs and services are designed to improve the security of entrances and perimeters for the special benefit of each assessed residential parcel and in turn their tenants, visitors and owners, which, in turn, may increase occupancies and rental income. Each assessed parcel will specially benefit from the safe programs and services which will only be provided to, and for the direct benefit of, each identified assessed parcel within the District boundaries

392

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10 District Identity/Placemaking
This work plan category includes regular marketing and image enhancement programs and services for the special benefit of each assessed parcel and land use within ODMD by creating a unique, marketable District identity. This work plan category also includes placement of, and care for, a variety of physical improvements and amenities within the public streetscape areas within ODMD for the special benefit of each identified and assessed parcel and land use within ODMD by creating a unique and marketable “sense of place”. The District Identity/Placemaking work plan component includes:

• daily updated responsive website DowntownOxnard.org
• integrated social media promotion – Facebook, Instagram, Twitter, YouTube • produced and sponsored live events (e.g. First Thursdays, Cruise Night, Halloween, etc.) • district advertising, newsletters, press releases, media relations, original photo library • Marketing Committee support for merchant coordinated promotions • assist prospective businesses with referrals to leasable properties • permit processing assistance

Also included are:
• district-wide holiday streetlamp décor
• 162 sidewalk flower planters
• Historic Plaza Park hanging flower baskets
• public art – utility box painting and temporary murals • street banner program (88 street poles)

The District Identity/Placemaking work plan component is designed to specially benefit and improve the image of each assessed parcel within the PBID and attract more customers, clients, employees, tenants, residents and investors which potentially would increase business volumes, sales transactions, occupancies, rental income and attractiveness of investments. District Identity/Placemaking programs and services will only be provided for identified and assessed parcels located within the PBID boundaries.

For parcels with general commercial, retail, restaurant, office and commercial parking uses , District Identity/Placemaking services and programs are specifically designed to attract more customers, employees, tenants and investors for the special benefit of assessed parcels as a result of marketing assessed parcels and the goods and services and spaces available on these assessed parcels. This in turn, is intended to increase business volumes, sales transactions, commercial occupancies, commercial rental income and investment return. In the case of publicly/non-profit owned/occupied parcels that are assessed for these programs, District Identity/Placemaking creates better public/non -profit facilities and services on these assessed parcels by fostering better informed public/non -profit employees, visitors, vendors and users of these public/non -profit facilities. Further, in the case of residential use parcels , District Identity/Placemaking specially benefits each assessed residential parcel and creates better informed tenants, visitors and owners, which, in turn, enhance livability and may increase residential occupancies and rental income. District Identity/Placemaking services and programs will only be provided to, and for the direct and special benefit of, each identified assessed parcel within the District. 393

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11 Organization
This work plan category includes professional management and related corporate operation costs of providing PBID funded services, programs and improvements for the special benefit of each identified and assessed parcel and land use within ODMD. The Organization work plan component includes:

• staff and full service office to manage PBID programs, projects, compliance reporting. • full service office to assist property and business owners with District-related needs • advocacy and representation of member interests on District issues and needs • Organize “town hall” forums and advocacy on topics such as homeless solutions, Vision Plan

Organization also includes legal, accounting, insurance, production of the Annual Planning Report and Budget and quarterly reports, facilitation of meetings of the Owners’ Association, Brown Act compliance, outreach to District property and business owners, and participation in prof essional peer/best practice forums such as the California Downtown Association or the International Downtown Association. It also covers the costs associated with District renewal. A portion of the Organization budget is held in reserve to offset delinquent and/or slow assessment payments.

The Organization component is key to the proper expenditure of District assessment funds and the administration of District programs and activities for the special benefit of all parcels and land uses within the ODMD. The Organization work plan component exists only for the purposes of the District and directly relates to the implementation of Civil Sidewalks and District Identity/Placemaking services, programs and improvements which specially benefit each identified assessed parcel within the District boundaries.

In summary, all District funded services, programs and improvements described above confer proportionate special benefits to identified assessed parcels inside the District boundaries and none will be provided outside of the District. Each assessed parcel within the ODMD will proportionately specially benefit from Civil Sidewalks, District Identity/Placemaking and Organization . These services, programs and improvements are intended to improve commerce, employment, livability, rents, occupancy rates and investment viability of assessed parcels, businesses and residents within the ODMD by deterring crime, reducing litter and debris, making capital improvements and professionally marketing goods, services and spaces available within the District, all considered necessary in a competitive properly managed contemporary mixed -use business district. All District funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Oxnard and are only provided for the special benefit of each and every assessed parcel within the boundaries of the ODMD.

WORK PLAN BUDGET

Each identified assessed parcel within the ODMD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of District funded services provided. The projected District program special benefit (assessment) cost allocation budget for Year 1 (2025), is shown in the following Table:

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12 ODMD Year 1 (2025) Special Benefit Assessment Budget

CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING ORGANIZATION TOTAL
$335,000 $82,000 $155,261 $572,261

58.5397% 14.3291% 27.1312% 100.000%

In order to carry out the District programs outlined in the previous section, a Year 1 assessment budget of $572,261 is projected. Since the District is planned for a 5 -year term, projected program costs for future years (Years 2-5) are set at the inception of the District. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per annum, commensurate to special benefits received by each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year District term. It is noted that the 5% maximum annual rate increase is deemed necessary in order to offset substantial service and improvement cost increases projected over the next several years and to provide levels of service and types of improvements expected and requested by District stakeholders.

Carryovers, if any, may be reapportioned the following year for related programs, services and improvements. Detailed annual budgets will be prepared by the Owner ’s Association Board and included in an Annual Plan for the City Council’s review and approval.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed renewed District. Accordingly, the Owners’ Association shall have the ability to reallocate bud get line items within the budget categories based on such cost fluctuations subject to the review and approval by the Owners’ Association Board and included in the Annual Planning Report that will be approved by the Oxnard City Council pursuant to Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category.

A 5-year projected ODMD budget is shown in the following Table:

YEAR 1-5 PROJECED DISTRICT ASSESSMENT BUDGET SUMMARY (Special Benefit Costs) (Assumes 5% max rate increase per year)

YR
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING ORGANIZATION TOTAL

58.5397% 14.3291% 27.1312% 100.00%
1 $335,000 $82,000 $155,261 $572,261
2 $351,750 $86,100 $163,024 $600,874
3 $369,338 $90,405 $171,175 $630,918
4 $387,805 $94,925 $179,734 $662,464
5 $407,195 $99,671 $188,721 $695,587

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13 The ODMD assessments may increase for each individual parcel each year during the 5 -year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Assoc iation Board of Directors, included in the Annual Planning Report and adopted by the City of Oxnard City Council. The Owners’ Association Board of the Directors (“Property Owner’s Association of the ODMD) shall determine the percentage increase to the annual assessment. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the District operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Oxnard.

No bonds are to be issued in conjunction with the proposed renewed District.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewal budget or returned to stakeholders. District assessment funds may be used to pay for costs related to the following District renewal term. If the District is not renewed or terminated for any reason, unexpended funds will be returned to the property owners.

Special/General Benefits
The Assessment Engineer (see attached Engineer’s Report) has found that the general benefits (i.e. general benefits to assessed parcels within the District, the general public and surrounding parcels outside the ODMD) of the proposed programs, services and improvements (i.e . civil sidewalks, district identity/placemaking and organization ) represent 2.0% of the total benef its generated and, in turn, 2.0% ($11,679) of the total adjusted costs of the ODMD funded improvements, activities and services provided.

Total Year 1 adjusted costs are estimated at $ 583,940. General benefits are factored at 2.0% of the total adjusted costs (see Finding 2 on pages 5-9 of the attached Engineer’s Report) with special benefits set at

98.0%. Article XIIID Section 4(b) of the California Constitution limits the levy of property assessments to costs attributed to special benefits only. The 2.0% general benefit cost is computed to be $ 11,679 with a resultant 98.0% special benefit limit computed at $572,261. Based on current property data and land uses, this is the maximum amount of Year 1 (20 24-25) revenue that can be derived from property assessments from the subject District.

All program costs associated with general benefits will be derived from sources other than District assessments. Sample “other” revenue sources are shown in the following Table:

Special and General Benefit Revenue Sources

Revenue Source Revenue % of Total
District Assessments $572,261 98.0%
Grants, donations, sponsors, program income, etc. $11,679 2.0% TOTAL $583,940 100.0%

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14 A breakdown of projected special and general benefit costs for each year of the 5-year renewal term is shown in the following Table:

5 Year Special + General Benefit Costs

YR PROGRAM CATEGORY

SPECIAL

BENEFIT

ASSESSMENT
COSTS

GENERAL

BENEFIT
NON-

ASSESSMENT
COSTS
TOTAL

ADJUSTED
COSTS
% OF
TOTAL
1 CIVIL SIDEWALKS $335,000 $6,837 $341,837 58.5397%
DISTRICT IDENTITY & PLACEMAKING $82,000 $1,673 $83,673 14.3291% ORGANIZATION $155,261 $3,169 $158,430 27.1312%
Total $572,261 $11,679 $583,940 100%

2 CIVIL SIDEWALKS $351,750 $7,179 $358,929 58.5397%
DISTRICT IDENTITY & PLACEMAKING $86,100 $1,757 $87,857 14.3291% ORGANIZATION $163,024 $3,327 $166,351 27.1312%
Total $600,874 $12,263 $613,137 100%

3 CIVIL SIDEWALKS $369,338 $7,538 $376,876 58.5397%
DISTRICT IDENTITY & PLACEMAKING $90,405 $1,845 $92,250 14.3291% ORGANIZATION $171,175 $3,493 $174,668 27.1312%
Total $630,918 $12,876 $643,794 100%

4 CIVIL SIDEWALKS $387,805 $7,915 $395,720 58.5397%
DISTRICT IDENTITY & PLACEMAKING $94,925 $1,937 $96,862 14.3291% ORGANIZATION $179,734 $3,668 $183,402 27.1312%
Total $662,464 $13,520 $675,984 100%

5 CIVIL SIDEWALKS $407,195 $8,311 $415,506 58.5397%
DISTRICT IDENTITY & PLACEMAKING $99,671 $2,034 $101,705 14.3291% ORGANIZATION $188,721 $3,851 $192,572 27.1312%
Total $695,587 $14,196 $709,783 100%

Duration
As allowed by State PBID Law, the District will have a five (5) year operational term from January 1, 2025 to December 31, 2029. The proposed renewed District operation is expected to begin services on January 1, 2025. If the District is not renewed, services will end on December 31, 2029.

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15 Manner of Collection
Assessments for the Property Tax Year beginning July 1, 2024 and ending June 30, 2029, shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of Ventura (Operation Years 2025-2029). The District assessments shall appear as a separate line item on the property tax bills issued by the Ventura County Assessor. The City of Oxnard is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penal ties on the County tax rolls as appropriate to implement this Management District Plan.

IV PROPOSED ASSESSMENT FORMULA
The PBID programs and services described in this Management District Plan will be funded through benefit assessments against real property in the PBID and non-assessment revenues to fund the costs associated with general benefits conferred on assessed parcels within the District, the public at large and surrounding parcels outside of the ODMD boundaries. The assessment formula has been developed by the Assessment Engineer to ensure that no parcel will be assessed an amount that exceeds the cost of the proportional special benefit that parcel derives from the programs, services and improvements to be funded by the proposed benefit assessments. The assessment rates are based on the anticipated special benefit to be conferred on each assessed parcel within the boundary of the ODMD.

Based on the specific needs and corresponding nature of the program activities to be funded by the proposed renewed ODMD (i.e. civil sidewalks, district identity/placemaking and organization) it is the opinion of the Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage, except as noted herein, within one benefit zone.

The “Basic Benefit Units” will be expressed as a combined function of building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”) and street frontage (Benefit Unit “C”). Based on the shape of the proposed ODMD, as well as the nature of the District program elements, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage, except as noted herein, within one benefit zone.

Special benefit proportionality varies for different land uses/ownership types and assessable property characteristics (units), are adjusted via differing assessment methodologies and multiplier factors. See “Special Circumstances” beginn ing on page 20 of this Plan which delineates special assessment methodologies and factors and how and when they are applied.

For the array of land uses within the PBID, the interactive application of building and land areas and street frontage quantities are a common method of fairly and equitably spreading special benefit costs to these beneficiaries of PBID funded services, pr ograms and improvements. Each of these factors directly relates to the degree of special benefit each assessed parcel will receive from PBID funded activities. There are no parcels zoned solely residential within ODMD.

Building area is a direct measure of the static utilization of each parcel and its corresponding impact or draw on PBID funded activities. In the opinion of the Assessment Engineer, the targeted weight of this factor, 398

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16 building area, should generate approximately 30% of the total PBID revenue (28.1905% when adjusted for precise parcel measurements, land use factors and program costs).

Land area is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on PBID funded activities. In the opinion of the Assessment Engineer, the targeted weight of this factor, land area, should generate approximately 40% of the total PBID revenue (43.4115% when adjusted for precise parcel measurements, land use factors and program costs).

Street Frontage is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on PBID funded activities. Street frontage includes all public street frontages of a parcel. In the opinion of the Assessment Engineer, the targeted weight of this factor, street frontage, should generate approximately 30% of the total PBID revenue (28.3980% when adjusted for precise parcel measurements, land use factors and program costs).

Special Circumstances

1. Lower Tier Residential Uses (1-6 non-condominium residential units) It is the opinion of the Assessment Engineer that these land uses do not specially benefit from marketing and promotion activities to the extent that commercial parcels and parcels with higher density residential rental units on them do. It is the opinion of the Assessment Engineer that the assessment for parcels with 1- 6 residential units on them shall be based on only on exterior building area which is a common method of fairly and equitably spreading special benefit costs to these land uses. Further, a special benefit adjustment factor of 0.5 will be applied to the measured exterior building area which then produces the number of assessable building area units. This assessment methodology directly relates to the proportionate amount of special benefit eac h residential parcel with 1 -6 units on them will receive from ODMD funded services, programs and improvements for these land uses.

2. Upper Tier Residential Uses (7+ non-condominiums residential units) It is the opinion of the Assessment Engineer that these land uses do not specially benefit from marketing and promotion activities to the extent that commercial parcels do but more than parcels with 1-6 residential units on them do. It is the opinion of the Assessment Engineer that the assessment for parcels with 7+ residential units on them shall be based on exterior building area, parcel land area and parcel street frontage which is a common method of fairly and equitably spreading special benefit costs to these land uses. Further, a special benefit adjustment factor of 0.5 will be applied to the measured exterior building area, land area and street frontage which then produces the number of assessable building area units, land area units and street frontage units. This assessment methodology directly relates to the proportionate amount of special benefit each residential parcel with 7+ units on them will receive from ODMD funded services, programs and improvements for these land uses.

3. Mixed-Use (Non-Condominium Commercial and Residential) It is the opinion of the Assessment Engineer that parcels with non -condominium mixed commercial and residential uses on them will specially benefit from PBID funded programs, services and improvements but different than those with only commercial uses on them. The residential portions of these land uses d o not specially benefit from marketing and promotion activities to the extent that commercial uses do. As such, 399

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17 the assessment rates and applicable assessment methodology will be applied based on each land use portion and the area of the parcel they cover. Mixed -use parcels will be assessed for the commercial use portions at commercial rates for the commercial building area, the parcel land area covered by commercial uses and the amount of direct commercial street frontage. The residential land use portions will be assessed based on the residential criteria and methodologies delineated in # 2 and 3 above.

4. Residential Condominiums
It is the opinion of the Assessment Engineer that these land uses do not specially benefit from marketing and promotion activities to the extent that commercial parcels and other parcels with residential units on them do. It is the opinion of the Assessment Engineer that the assessment for residential condominiums shall be based on only on interior building area which is a common method of fairly and equitably spreading special benefit costs to these unique property ownerships, subdivisions and land uses. Further, a special benefit adjustment factor of 0.5 will be applied to the measured interior building area which then produces the number of assessable building area units. This assessment methodology directly relates to the proportionate amount of special benefit each residential condominium parcel will receive from ODMD funded services, programs and improvements for these land uses.

5. Commercial Condominiums
It is the opinion of the Assessment Engineer that such units, when located solely on ground floors, shall be assessed based on actual land area covered, interior condo building area and direct street frontage or pro-rated street frontage for each unit. Multi -floor commercial condominiums shall be as sessed on interior condo building area and pro-rated land area and street frontage as determined by the Assessment Engineer depending on the development configuration. If residential condominiums are part of the development, the residential portions will be assessed based on the residential criteria and methodology delineated in #1 above.

6. Publicly Owned/Occupied Parcels
Each assessable publicly (government) owned parcel and facility within ODMD will proportionately specially benefit as delineated herein from the ODMD funded supplemental services, programs and improvements, but differently than privately owned parcels. It is the opinion of the Assessment Engineer that publicly owned parcels and public facilities do not specially benefit to the same extent as privately owned parcels from PBID funded district identity/placemaking services, programs and improvements. To offset this special benefit differential, publicly owned parcels with public facilities on them will not be assessed for publicly used building areas located on these parcels. Publicly owned parcels with non - government uses on them will be assessed for building areas not occupied by government uses and facilities.

It is noted that the only publicly owned parcel not being assessed is the United States Post Office parcel on A Street. The US Attorney General has opined that Federally owned properties are exempt from local taxes and benefit assessments in accordance wit h the Supremacy Clause of the US Constitution. As such, no direct ODMD funded special benefit services, programs and improvements will be provided adjacent to or for the special benefit of this parcel.

7. Non-Profit Owned and Occupied Parcels
Each identified and assessable non -profit owned parcel and use within ODMD will proportionately 400

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18 specially benefit as delineated herein from the ODMD funded supplemental services, programs and improvements, but differently than other privately owned parcels. It is the opinion of the Assessment Engineer that non-profit owned parcels and uses do not specially benefit to the same extent as other privately owned parcels from district identity/placemaking services, programs and improvements. To offset this special benefit differential, non-profit owned parcels with non-profit uses on them will not be assessed for non-profit used building areas located on these parcels. Non-profit owned parcels with “for-profit” uses on them will be assessed for building areas occupied by “for-profit” uses.

8. Changes to Building or Parcel Size
Any changes in building size, parcel size and street frontage(s) as a result of new construction or demolition or land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such parcel adjustments.

9. Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Plan and the Engineer’s Report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Plan and the Engineer’s Report would require a new Proposition 218 ballot procedure in order to approve any such changes.

Taking into account all identified specially benefiting parcels within the District and their respective assessable benefit units, the rates, cumulative quantities and assessment revenues by factor are shown in the following Tables:

Year 1 – 2024/2025 – Gross Quantities

GROSS

BLDG AREA
(SF)
# OF

ASSESABLE

PARCELS
GROSS

LAND AREA
(SF)
GROSS
STREET

FRONTAGE
(LF)
1,277,861 432 3,262,505 30,708

Year 1 – 2024/2025 - Assessable Benefit Units

ASSESSABLE

BLDG AREA
UNITS
# OF

ASSESSABLE
PARCEL
UNITS

ASSESSABLE

LAND AREA
UNITS

ASSESSABLE
STREET

FRONTAGE
UNITS
1,171,556.50 383.50 3,133,029.41 35,405.37

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19 Year 1 – 2024/25 Projected Assessment Revenue

BLDG
ASSMT

REVENUE
LAND 1
ASSMT

REVENUE
LAND 2
ASSMT

REVENUE
STREET

FRONTAGE
ASSMT

REVENUE
TOTAL
ASSMT

REVENUE
$161,323.33 $152,556.30 $95,870.70 $162,510.65 $572,260.98

28.1905% 26.6585% 16.7530% 28.3980% 100.00%

The number of Benefit Units for each identified benefiting parcel within the proposed renewed ODMD was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, building and property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an accepta ble basis for the purpos e of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the District for their review. If a property owner believes there is an error on a parcel’s assessed quantities, the District may confirm the data with the Ventura County Assessor’s office. If District data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the District assessment may be corrected.

Assessment Formula

Based on the nature of the programs to be funded as well as other rationale outlined in Step 1 above, it is the opinion of the Assessment Engineer that the ODMD assessments will be based on building area, land area, and street frontage except as otherwise noted herein.

The proposed assessment formula is as follows:

Assessment = Assessable Building Area (Unit A) x Unit A Rate, plus Assessable Land Area (Unit B-1) x Unit B-1 Rate, plus
Assessable Land Area (Unit B-2) x Unit B-2 Rate, plus
Assessable Street Frontage (Unit C) x Unit C Rate

YEAR 1 –2024/25 Assessment Rates

BLDG
ASSMT
RATE
($/UNIT A)

LAND ASSMT
RATE 1
($/UNIT B-1)
LAND
ASSMT
RATE 2
($/UNIT B-2 )

FRONTAGE
ASSMT
RATE
($/UNIT C)
$0.1377 $397.80 $0.0306 $4.59

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20 The complete Year 1 – 2024-25 assessment roll of all parcels to be assessed by this District is included in this Plan as Appendix I.

Assessment Formula Unit Rates

Using figures from the Assessable Benefit Units Table and the Projected Assessment Revenue Table on pages 18-19 of this Plan, the assessment rates and weighted multipliers for each factor are calculated as follows:

Building Area Rate (Unit A)
($572,260.98 x 28.1905%)/1,171,556.50 units = $0.1377/Building Unit A

Land Area Rate (Unit B-1)
($572,260.98 x 26.6585%)/383.50 units = $397.80/Land Unit B-1

Land Area Rate (Unit B-2)
($572,260.98 x 16.7530%)/3,133,029.41 units = $0.0306/Land Unit B-2

Street Frontage Rate (Unit C)
($572,260.98 x 28.3980%)/35,405.37 units = $4.59 Street Frontage Unit C

Since the ODMD is planned for a 5-year term, maximum assessment rates for future years (Years 2-5) must be set at the inception of the PBID. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per annum is incorporated into the projected program costs and, in turn, the resultant assessment rates for the 5-year term of the PBID. These figures are shown in the table below. Assessment rates may not exceed those indicated below.

In addition, any annual budget surplus or deficit will be incorporated into the subsequent year’s PBID budget. Within the constraints of the annual adjustment, annual assessments will be set to account for surpluses or deficits carried forward.

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21 ODMD – 5-Year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

YEAR

BLDG ASSMT
RATE
($/UNIT)
LAND
ASSMT
RATE 1
($/UNIT)
LAND
ASSMT
RATE 2
($/UNIT )

FRONTAGE
ASSMT
RATE
($/UNIT)

1 $0.1377 $397.8000 $0.0306 $4.5900

2 $0.1446 $417.6900 $0.0321 $4.8195

3 $0.1518 $438.5745 $0.0337 $5.0605

4 $0.1594 $447.3460 $0.0344 $5.3135

5 $0.1674 $456.2929 $0.0351 $5.5792

SAMPLE ASSESSMENT CALCULATION:

A 7,000 square foot lot with 50 linear feet of street frontage and a 5,000 square foot building on it

Bldg Area = 5,000 SF x $0.1377 = $ 688.50
Land Area = 7,000 SF x $0.0306 SF + $397.80 = $ 612.00 Street Frontage = 50 LF x $4.59/LF = $ 229.50
TOTAL YEAR 1 ASSESSMENT = $1,530.00

Per Month = $ 128/Month
Per Day = $4.25/Day

The complete Year 1 – 2024-25 assessment roll of all parcels to be assessed by this PBID is included in this Plan as Appendix I.

V. PUBLICLY OWNED PARCELS

The State Constitution - Article 13D (Proposition 218) states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly -owned parcels in fact receive no special benefit.”

There are 154 publicly owned parcels within ODMD, all of which are identified and assessable for which District funded special benefit programs, services and improvements will be provided. All 154 of the 404

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

22 assessed publicly owned parcels are owned by the City of Oxnard, including the Oxnard Parking Authority and the Oxnard Housing Authority. It is noted that the only publicly owned parcel within ODMD not being assessed is the United States Post Office parcel on A Street. The US Attorney General has opined that Federally owned properties are exempt from local taxes and benefit assessments in accordance with the Supremacy Clause of the US Constitution. As such, no direct PBID funded special benefit services, programs and improvements will be provided adjacent to this parcel.

For all other publicly owned/occupied parcels and facilities within ODMD, each of these parcels specially benefit from District funded programs services and improvements. The special benefits include cleaner and safer facility entrances and perimeters for their employees, visitors, tenants, vendors and other users of these public locations and facilities. Publicly owned parcels and facilities will be included in all maps, directories and District advertisements and web displays and are active components of Downtown Oxnard’s identity and fabric.

ODMD services are designed to improve the safety and cleanliness for visitors, employees, tenants and users of public facilities on publicly owned parcels within the District by deterring crime and reducing litter and debris, each considered detractions to employment, visitation and use of public facilities if not contained and properly managed. In turn, these services will serve to enhance the public service levels provided b y public facilities and parcels within ODMD.

Each identified and assessable publicly owned parcel and facility within ODMD will proportionately specially benefit as delineated herein from the ODMD funded supplemental services, programs and improvements, but differently than privately owned parcels. I t is the opinion of th e Assessment Engineer that publicly owned parcels and public facilities do not specially benefit to the same extent as privately owned parcels from PBID funded services, programs and improvements. To offset this special benefit differential, publicly owned parcels with public facilities on them will not be assessed for public building areas located on these parcels. Publicly owned parcels with non-government uses on them will be assessed for building areas not occupied by government uses and facilities.

There is no compelling evidence that these identified assessable publicly owned parcels and facilities would not proportionately specially benefit from ODMD funded programs, services and improvements as delineated herein and, thus, will be assessed similar to privately owned parcels, except as noted herein.

VI. PBID DISTRICT GOVERNANCE
The governance or management of a PBID typically requires an “Owner’s Association” to carry out the PBID services and activities. State PBID Law (36600 Streets & Highways Code) also requires that the Owner’s Association carry out specific additional functions. This includes preparation of an Annual Report to the City Council on the PBID activities for the past fiscal year and those proposed for the next fiscal year.

The Owner’s Association may also recommend to the City Council from time to time, changes to the PBID boundaries, benefit zones, assessment formula or PBID programs and activities, all subject to public notification and, in some cases petition/balloting requirements.

405

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

23 Meetings of the Owner’s Association and its standing Committees shall be subject to the State of California “Brown Act” open meeting law.

VII. PROPOSED RULES AND REGULATION APPLIED TO THE DISTRICT There are no specific rules or regulations applied to this PBID

VIII. OTHER ITEMS
No bonds will be issued for any ODMD projects in conjunction with this renewal.

IX. PLAN AUTHOR
The author and preparer of this Plan is Ed Henning of Edward Henning & Associates

X. IMPLEMENTATION TIME TABLE

The renewed PBID is expected to begin operation by January 2025. In order to meet this goal, the following procedural timeline is proposed:

Date Action/Task

Jan 2024 • Finalize PBID Management District Plan
Feb 2024 • Initiate petition drive
Feb-Mar 2024 • Collect petitions signed by property owners April 2024 • Submit majority support petitions to City along with Management Plan
Spring 2024 • City Council adopts Resolution of Intention to renew the PBID Spring 2024 • City sends notice of PBID public hearing and a ballot to all property owners within PBID
Mid-2024 • City Council conducts hearing (ballots due by this date) Mid-2024 • Providing no majority ballot protest is filed at the hearing, Council approves Ordinance of Renewal for the PBID
August 2024 • Assessment roll submitted to County Assessor Dec 10/Apr 10 (due) • Assessments billed and collected by County with property taxes 1st Quarter ‘25 • Revenues remitted to Owner’s Association per contract with City (5 years) • Owner’s Association carries out renewed PBID programs and services 406

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

24 APPENDIX 1

YR 1 – 2024/25

ASSESSMENT ROLL

407

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN 25 APN SITE ADDRESS
2024-25
ASSESSMENT % OF TOTAL
2010113110 202 S OXNARD BL $3,971.91 0.694%
2010160010

N OXNARD BL $703.80 0.123%
2010160020

E FOURTH ST $666.56 0.116%
2010160030

E FOURTH ST $1,877.31 0.328%
2010160040

E FOURTH ST $500.71 0.087%
2010160050

E FOURTH ST $927.18 0.162%
2010160060

E FOURTH ST $468.18 0.082%
2010160070

E FOURTH ST $789.48 0.138%
2010160080

E FOURTH ST $729.81 0.128%
2010160090

E FOURTH ST $704.57 0.123%
2010160100

E FOURTH ST $795.60 0.139%
2010160110

E FOURTH ST $983.18 0.172%
2010160120 400 S OXNARD BL $826.20 0.144%
2010160130

E FOURTH ST $1,358.64 0.237%
2010160170 344 S OXNARD BL $1,604.21 0.280%
2010160180 330 S OXNARD BL $1,818.48 0.318%
2010160190 332 S OXNARD BL $1,040.34 0.182%
2010160200 320 S OXNARD BL $2,024.80 0.354%
2010160220 300 S OXNARD BL $1,170.08 0.204%
2010160250 350 S OXNARD BL $1,175.81 0.205%
2010160260 350 S OXNARD BL $2,270.29 0.397%
2010211010 134

ENTERPRISE ST $2,040.26 0.357%
2010211040

META ST $497.77 0.087%
2010211110

E FIFTH ST $911.12 0.159%
2010211120

E FIFTH ST $772.04 0.135%
2010211130

E FIFTH ST $584.92 0.102%
2010211140

E FIFTH ST $584.92 0.102%
2010211155 135 E FIFTH ST $584.92 0.102%
2010211170 115 E FIFTH ST $1,940.32 0.339%
2010211180 111-13 E FIFTH ST $1,419.23 0.248%
2010211190 450 S OXNARD BL $1,649.16 0.288%
2010211200 446 S OXNARD BL $1,686.83 0.295%
2010211210 430 S OXNARD BL $1,688.20 0.295%
2010211225

E FIFTH ST $468.00 0.082%
2010211230

E FIFTH ST $697.50 0.122%
2010211300 136

ENTERPRISE ST $597.77 0.104%
2010211360

META ST $1,197.55 0.209%
2010211380

ENTERPRISE ST $1,407.60 0.246%
2010212010 512 S OXNARD BL $1,614.41 0.282%
2010212020 106 E FIFTH ST $1,393.77 0.244%
2010212030 114 E FIFTH ST $1,386.88 0.242%
2010212060 144 E FIFTH ST $1,318.03 0.230%
2010212070 154 E FIFTH ST $1,479.13 0.258%
2010212140 127 E SIXTH ST $1,371.03 0.240%
2010212150 550 S OXNARD BL $3,128.24 0.547%
2010212165 604 S OXNARD BL $1,698.68 0.297%
2010212170 546 S OXNARD BL $1,743.44 0.305%
2010212180 532 S OXNARD BL $1,032.75 0.180%
408

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

26 2010212190 528 S OXNARD BL $1,063.35 0.186%
2010212200 523

META ST $784.13 0.137%
2010212230 128 E FIFTH ST $1,249.18 0.218%
2010212260 136 E FIFTH ST $1,899.51 0.332%
2010212270 511

META ST $3,959.85 0.692%
2010213010 200 E FIFTH ST $1,243.32 0.217%
2010213020 204 E FIFTH ST $754.63 0.132%
2010213030 210 E FIFTH ST $935.01 0.163%
2010213075 238 E FIFTH ST $582.50 0.102%
2010213080

META ST $1,256.68 0.220%
2010213090 536

META ST $1,325.65 0.232%
2010213100 538

META ST $684.09 0.120%
2010213110 235 E SIXTH ST $1,531.93 0.268%
2010213120 209 E SIXTH ST $106.99 0.019%
2010213130

E SIXTH ST $1,153.62 0.202%
2010213140 544

META ST $602.99 0.105%
2010213150

META ST $566.12 0.099%
2010213160 214-228 E FIFTH ST $2,629.99 0.460%
2010214010

ENTERPRISE ST $844.56 0.148%
2010214020 200

ENTERPRISE ST $3,294.18 0.576%
2010214030 480

META ST $2,309.08 0.404%
2010214040 235 E FIFTH ST $2,897.16 0.506%
2010271030 638

META ST $684.09 0.120%
2010271040 634

META ST $646.43 0.113%
2010271060 616

META ST $703.80 0.123%
2010271070 612

META ST $909.59 0.159%
2010271080 600

META ST $1,279.08 0.224%
2010271090

E SIXTH ST $627.30 0.110%
2010271100 220 E SIXTH ST $856.80 0.150%
2010271110 224 E SIXTH ST $856.80 0.150%
2010271160 235 E SEVENTH ST $883.48 0.154%
2010271170 234 E SIXTH ST $1,463.63 0.256%
2010271180 650

META ST $2,957.18 0.517%
2010272010 155 E SEVENTH ST $1,457.33 0.255%
2010272020

E SEVENTH ST $642.60 0.112%
2010272030 141 E SEVENTH ST $642.60 0.112%
2010272040 131 E SEVENTH ST $887.40 0.155%
2010272050 125 E SEVENTH ST $887.40 0.155%
2010272060 658 S OXNARD BL $1,797.75 0.314%
2010272070 656 S OXNARD BL $841.50 0.147%
2010272080 650 S OXNARD BL $841.50 0.147%
2010272090 638 S OXNARD BL $1,063.35 0.186%
2010272100 626 S OXNARD BL $1,736.55 0.303%
2010272110 620 S OXNARD BL $992.40 0.173%
2010272120 610-612 S OXNARD BL $1,361.04 0.238%
2010272140 128 E SIXTH ST $627.30 0.110%
2010272150 128 E SIXTH ST $1,906.38 0.333%
2010272160 140 E SIXTH ST $844.18 0.148%
2010272170 150 E SIXTH ST $856.80 0.150%
409

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

27 2010272180 154 E SIXTH ST $1,487.93 0.260%
2010272190 629

META ST $55.08 0.010%
2010272200

META ST $589.05 0.103%
2010272210

META ST $474.30 0.083%
2010272220 633

META ST $1,814.58 0.317%
2010272230 600 S OXNARD BL $1,832.36 0.320%
2010360110 126 E SEVENTH ST $1,751.61 0.306%
2020052060 143 S B ST $1,392.30 0.243%
2020052070 S B ST $841.50 0.147%
2020052080 S B ST $1,190.34 0.208%
2020052090 W SECOND ST $691.56 0.121%
2020054010 216 W FIRST ST $1,219.41 0.213%
2020054020 111 S A ST $841.50 0.147%
2020054030 S A ST $841.50 0.147%
2020054040 S A ST $841.50 0.147%
2020054050 141 S A ST $3,157.92 0.552%
2020054060 155 S A ST $3,511.35 0.614%
2020054090 136 S B ST $841.50 0.147%
2020054100 122 S B ST $242.21 0.042%
2020054110 118 S B ST $962.37 0.168%
2020054120 110 S B ST $185.90 0.032%
2020054130 254 W FIRST ST $1,828.35 0.319%
2020054145 B ST $2,371.50 0.414%
2020056030 141 S OXNARD BLVD $2,149.65 0.376%
2020056040 155 S OXNARD BLVD $2,181.78 0.381%
2020056060 156 S A ST $963.90 0.168%
2020056080 150 S A ST $895.05 0.156%
2020056090 144 S A ST $841.50 0.147%
2020056100 138 S A ST $963.90 0.168%
2020056110 134 S A ST $791.78 0.138%
2020056120 132 S A ST $1,530.00 0.267%
2020056130 122 S A ST $1,075.59 0.188%
2020056140 110 S A ST $1,461.15 0.255%
2020056150 136 W FIRST ST $2,034.90 0.356%
2020056160 135 W SECOND ST $2,379.15 0.416%
2020056170 111 S OXNARD BLVD $3,534.30 0.618%
2020081010 201 S C ST $1,484.10 0.259%
2020081020 211 S C ST $841.50 0.147%
2020081100 260 S D ST $1,257.66 0.220%
2020081160 208 S D ST $841.50 0.147%
2020081170 200 S D ST $1,484.10 0.259%
2020081180 231 S C ST $856.80 0.150%
2020081190

S C ST $856.80 0.150%
2020081200

S C ST $856.80 0.150%
2020081210 251 S C ST $856.80 0.150%
2020081220

S C ST $856.80 0.150%
2020081230

W THIRD ST $1,499.40 0.262%
2020081240

S D ST $639.54 0.112%
2020081250

S D ST $856.80 0.150%
410

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

28 2020081260

S D ST $856.80 0.150%
2020081270

S D ST $856.80 0.150%
2020081280

S D ST $856.80 0.150%
2020081290 210 S D ST $856.80 0.150%
2020083030 321 S C ST $1,381.28 0.241%
2020083040 327 S C ST $68.85 0.012%
2020083050 331 S C ST $1,668.82 0.292%
2020083060 345 S C ST $1,202.15 0.210%
2020083070 361 S C ST $1,332.63 0.233%
2020083210 301 S C ST $2,381.97 0.416%
2020083220 418 W THIRD ST $918.00 0.160%
2020085030 431 S C ST $843.41 0.147%
2020085040 437 S C ST $904.70 0.158%
2020085050 441 S C ST $3,681.58 0.643%
2020085190 418 W FOURTH ST $845.33 0.148%
2020085200 401 S C ST $2,044.08 0.357%
2020091100

S C ST $841.50 0.147%
2020091370 351 W THIRD ST $1,927.80 0.337%
2020091380

W SECOND ST $1,063.96 0.186%
2020091390 206 W SECOND ST $12,485.99 2.182%
2020091400 214 W SECOND ST $3,907.38 0.683%
2020092030

S B ST $483.48 0.084%
2020092040

S B ST $755.82 0.132%
2020092050 343 S B ST $1,296.60 0.227%
2020092060 351 S B ST $1,322.62 0.231%
2020092070 361 S B ST $2,448.00 0.428%
2020092120 320 S C ST $841.50 0.147%
2020092130 310 S C ST $1,365.59 0.239%
2020092140 330 W THIRD ST $2,310.30 0.404%
2020092170 300 W THIRD ST $6,359.32 1.111%
2020092180 344 S C ST $2,180.25 0.381%
2020092190 350 S C ST $3,028.47 0.529%
2020094010 301 S A ST $2,092.12 0.366%
2020094020 309 S A ST $1,226.45 0.214%
2020094035 325 S A ST $2,649.96 0.463%
2020094040 327-337 S A ST $2,099.16 0.367%
2020094050 339 S A ST $1,276.02 0.223%
2020094060 345 S A ST $1,523.88 0.266%
2020094080 361 S A ST $2,073.12 0.362%
2020094140 324 S B ST $1,373.94 0.240%
2020094155

S B ST $416.16 0.073%
2020094160

S B ST $416.16 0.073%
2020094170

S B ST $823.14 0.144%
2020094185

W THIRD ST $789.48 0.138%
2020094195

S B ST $1,536.12 0.268%
2020094205

S B ST $434.52 0.076%
2020094215 365 S B ST $1,891.08 0.330%
2020094225

S B ST $434.52 0.076%
2020094235

S B ST $1,248.48 0.218%
411

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

29 2020094240 355 S A ST $1,702.31 0.297%
2020095075 254 S A ST $841.50 0.147%
2020095085 242 S A ST $841.50 0.147%
2020095090 228 S A ST $1,474.92 0.258%
2020095100 220 S A ST $1,357.88 0.237%
2020095110 210 S A ST $841.50 0.147%
2020095120 200 S A ST $4,435.29 0.775%
2020095140 221 S OXNARD $2,785.37 0.487%
2020095150 229 S OXNARD $1,686.83 0.295%
2020095160 235 S OXNARD $1,686.83 0.295%
2020096035 357 S OXNARD BL $1,568.25 0.274%
2020096040 350 S A ST $0.00 0.000%
2020096050 336 S A ST $1,754.91 0.307%
2020096060 326 S A ST $1,402.70 0.245%
2020096070 318 S A ST $1,530.00 0.267%
2020096080 300 S A ST $3,265.97 0.571%
2020096095

S OXNARD BL $1,058.76 0.185%
2020096105 321 S OXNARD BL $2,677.42 0.468%
2020096110 349 S OXNARD BL $1,363.08 0.238%
2020096125

S OXNARD BL $786.11 0.137%
2020101130 422 S C ST $1,698.30 0.297%
2020101190 329 W FIFTH ST $711.60 0.124%
2020101205

S C ST $553.86 0.097%
2020101215

S C ST $1,940.04 0.339%
2020101225

W FOURTH ST $410.81 0.072%
2020101235

W FOURTH ST $583.70 0.102%
2020101255 425 S B ST $499.55 0.087%
2020101270

W FIFTH ST $412.34 0.072%
2020101290

W FIFTH ST $451.35 0.079%
2020101310

W FIFTH ST $412.34 0.072%
2020101330

W FIFTH ST $412.34 0.072%
2020101355

W FIFTH ST $412.34 0.072%
2020101360 424 S C ST $407.35 0.071%
2020101370

W FIFTH ST $421.52 0.074%
2020101405

S B ST $457.62 0.080%
2020101415 425 S B ST $4,009.58 0.701%
2020101420 314 W FOURTH ST $1,366.11 0.239%
2020101435

W FOURTH ST $423.81 0.074%
2020101445 405 S B ST $2,312.38 0.404%
2020102010 500 S C ST $5,214.94 0.911%
2020103025

W FIFTH ST $795.60 0.139%
2020103090

W SIXTH ST $795.60 0.139%
2020103100 560 S C ST $2,269.14 0.397%
2020103115 544 S C ST $501.08 0.088%
2020103120 338 W FIFTH ST $2,043.27 0.357%
2020103130 319 W SIXTH ST $872.10 0.152%
2020103145

W SIXTH ST $780.30 0.136%
2020103175

W FIFTH ST $405.83 0.071%
2020103185

W FIFTH ST $589.92 0.103%
412

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

30 2020103195 301 E SIXTH ST $2,296.96 0.401%
2020103205

W SIXTH ST $668.30 0.117%
2020103210 318 W FIFTH ST $1,205.64 0.211%
2020103225

W FIFTH ST $423.81 0.074%
2020103235

S B ST $518.67 0.091%
2020103245 300 W FIFTH ST $2,534.45 0.443%
2020104015 401 S A ST $3,886.20 0.679%
2020104165 400 S B ST $2,829.63 0.494%
2020104395 445 S A ST $9,008.56 1.574%
2020104405 445 S A ST $1,202.18 0.210%
2020104415 445 S A ST $2,469.70 0.432%
2020104425 445 S A ST $2,120.06 0.370%
2020104435 445 S A ST $3,524.29 0.616%
2020105100 545 S A ST $7,328.70 1.281%
2020105120 538 S B ST $619.65 0.108%
2020105170

W SIXTH ST $507.96 0.089%
2020105180

S B ST $2,261.58 0.395%
2020105195

S B ST $406.98 0.071%
2020105205

S B ST $610.47 0.107%
2020105210

S B ST $406.98 0.071%
2020105220

S B ST $610.47 0.107%
2020105235

S B ST $425.34 0.074%
2020105245

S B ST $1,035.81 0.181%
2020105260

W FIFTH ST $489.60 0.086%
2020105275 270 W FIFTH ST $1,836.00 0.321%
2020105295 200 W FIFTH ST $2,851.16 0.498%
2020105305

S A ST $662.49 0.116%
2020105325 529 S A ST $2,705.65 0.473%
2020105335 505 S A ST $2,378.20 0.416%
2020106015 403 S OXNARD BL $1,311.21 0.229%
2020106035

S OXNARD BL $604.35 0.106%
2020106065

W FIFTH ST $833.85 0.146%
2020106120 424 S A ST $1,063.73 0.186%
2020106130 420 S A ST $1,758.58 0.307%
2020106140 400-410 S A ST $3,847.61 0.672%
2020106245

S OXNARD BL $664.02 0.116%
2020106250 425 N OXNARD BL $901.17 0.157%
2020106265

W FOURTH ST $483.17 0.084%
2020106275

W FOURTH ST $716.13 0.125%
2020106285

W FOURTH ST $434.52 0.076%
2020106295 421 S OXNARD BL $691.56 0.121%
2020106310

W FIFTH ST $454.56 0.079%
2020106320

W FIFTH ST $569.71 0.100%
2020106355 105 W FIFTH ST $2,082.33 0.364%
2020106370 428 S A ST $1,067.18 0.186%
2020106380 434 S A ST $1,067.30 0.187%
2020106390 438 S A ST $1,050.12 0.184%
2020106400 143 W FIFTH ST $2,211.28 0.386%
2020106410 141 W FIFTH ST $2,620.19 0.458%
413

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

31 2020107050

W FIFTH ST $601.14 0.105%
2020107060

W FIFTH ST $615.83 0.108%
2020107070

W FIFTH ST $615.83 0.108%
2020107080 104 W FIFTH ST $2,409.37 0.421%
2020107100 531 S OXNARD BL $1,019.75 0.178%
2020107110 545 S OXNARD BL $2,205.11 0.385%
2020107120 559 S OXNARD BL $604.35 0.106%
2020107135 563 S OXNARD BL $1,361.70 0.238%
2020107160 534 S A ST $1,303.56 0.228%
2020107170 528 S A ST $1,545.15 0.270%
2020107195

W FIFTH ST $572.22 0.100%
2020107205

W FIFTH ST $440.64 0.077%
2020107215

S OXNARD BL $439.11 0.077%
2020107225

S OXNARD BL $558.91 0.098%
2020107235 150 W FIFTH ST $3,147.21 0.550%
2020107240 560 S A ST $3,222.18 0.563%
2020107250 544-550 S A ST $1,640.77 0.287%
2020131030 519 S C ST $895.05 0.156%
2020131040 521-523 S C ST $1,747.57 0.305%
2020131050 535 S C ST $1,855.13 0.324%
2020131060 543-545 S C ST $1,704.21 0.298%
2020131070 555 S C ST $1,609.56 0.281%
2020131170 509-511 S C ST $1,232.42 0.215%
2020131190

S C ST $405.30 0.071%
2020131220

W FIFTH ST $642.60 0.112%
2020131230 515 S C ST $1,386.18 0.242%
2020133010 416 W SIXTH ST $1,484.10 0.259%
2020133020 613 S C ST $1,013.63 0.177%
2020133030 619 S C ST $841.50 0.147%
2020133040 625 S C ST $841.50 0.147%
2020133050 637 S C ST $94.12 0.016%
2020133060 643 S C ST $841.50 0.147%
2020133210 699 S C ST $3,519.89 0.615%
2020135025 711 S C ST $3,913.59 0.684%
2020135035 761 S C ST $6,364.80 1.112%
2020141050 333 W SEVENTH ST $1,927.80 0.337%
2020141060 644 S C ST $1,032.75 0.180%
2020141070 642 S C ST $619.65 0.108%
2020141080 634-636 S C ST $1,199.52 0.210%
2020141090 630 S C ST $1,199.52 0.210%
2020141100 618 S C ST $43.17 0.008%
2020141110 340 W SIXTH ST $1,927.80 0.337%
2020141155 687 S B ST $88.61 0.015%
2020141165 685 S B ST $83.03 0.015%
2020141175 683 S B ST $83.03 0.015%
2020141185 681 S B ST $88.61 0.015%
2020141195 673 S B ST $83.93 0.015%
2020141205 671 S B ST $82.90 0.014%
2020141215 669 S B ST $82.90 0.014%
414

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

32 2020141225 667 S B ST $82.90 0.014%
2020141235 665 S B ST $82.90 0.014%
2020141245 663 S B ST $82.90 0.014%
2020141255 661 S B ST $83.93 0.015%
2020141265 655 S B ST $83.93 0.015%
2020141275 653 S B ST $82.90 0.014%
2020141285 651 S B ST $83.93 0.015%
2020141295 645 S B ST $83.93 0.015%
2020141305 643 S B ST $82.90 0.014%
2020141315 641 S B ST $83.93 0.015%
2020141325 633 S B ST $83.93 0.015%
2020141335 631 S B ST $82.90 0.014%
2020141345 629 S B ST $82.90 0.014%
2020141355 627 S B ST $82.90 0.014%
2020141365 625 S B ST $82.90 0.014%
2020141375 623 S B ST $82.90 0.014%
2020141385 621 S B ST $83.93 0.015%
2020141395 611 S B ST $88.61 0.015%
2020141405 613 S B ST $83.03 0.015%
2020141415 615 S B ST $83.03 0.015%
2020141425 617 S B ST $88.61 0.015%
2020142160 785 S B ST $10,611.61 1.854%
2020143015 601 S A ST $3,376.40 0.590%
2020143025 623 S A ST $1,524.08 0.266%
2020143030 629 S A ST $1,015.00 0.177%
2020143040 635 S A ST $877.84 0.153%
2020143050 637 S A ST $619.65 0.108%
2020143140 246 W SIXTH ST $3,938.83 0.688%
2020143230 640 S B ST $1,904.85 0.333%
2020143240 237 W SEVENTH ST $1,689.18 0.295%
2020143250 235 W SEVENTH ST $1,260.40 0.220%
2020144170 230 W SEVENTH ST $951.05 0.166%
2020144180 220 W SEVENTH ST $1,110.52 0.194%
2020144190 210 W SEVENTH ST $1,170.21 0.204%
2020144200 200 W SEVENTH ST $1,023.37 0.179%
2020144210 710 S B ST $1,079.71 0.189%
2020144220 720 S B ST $560.50 0.098%
2020144230 730 S B ST $1,781.51 0.311%
2020144240 715 S A ST $560.16 0.098%
2020144250 721 S A ST $1,294.47 0.226%
2020144260 711 S A ST $947.72 0.166%
2020144270 740 S B ST $1,049.76 0.183%
2020144280 731 S A ST $952.98 0.167%
2020144290 750 S B ST $853.07 0.149%
2020144300 741 S A ST $981.33 0.171%
2020145010 112 W SIXTH ST $3,468.51 0.606%
2020145030 637 S OXNARD BL $1,221.29 0.213%
2020145050 653 S OXNARD BL $1,795.82 0.314%
2020145060 663 S OXNARD BL $1,179.71 0.206%
415

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

33 2020145100 630 S A ST $841.50 0.147%
2020145110 622 S A ST $1,667.70 0.291%
2020145120 618 S A ST $841.50 0.147%
2020145130 608 S A ST $1,557.54 0.272%
2020145140 120 W SIXTH ST $1,484.10 0.259%
2020145190

S A ST $841.50 0.147%
2020145200 631 S OXNARD BL $810.90 0.142%
2020145210 629 S OXNARD BL $708.54 0.124%
2020145220 658 S A ST $4,770.07 0.834%
2020145230 643 S OXNARD BL $1,198.11 0.209%
2020145240 645 S OXNARD BL $1,327.28 0.232%
2020146010 110 W SEVENTH ST $1,935.45 0.338%
2020146020 705 S OXNARD BL $1,120.73 0.196%
2020146030 711 S OXNARD BL $1,051.88 0.184%
2020146040 715 S OXNARD BL $742.05 0.130%
2020146050 719 S OXNARD BL $948.60 0.166%
2020146070 733 S OXNARD BL $1,335.95 0.233%
2020146080 737 S OXNARD BL $776.48 0.136%
2020146090 745 S OXNARD BL $604.35 0.106%
2020146100 755 S OXNARD BL $1,017.45 0.178%
2020146110 749 S OXNARD BL $604.35 0.106%
2020146120

S OXNARD BL $604.35 0.106%
2020146130 761 S OXNARD BL $879.75 0.154%
2020146140 752 S A ST $2,747.34 0.480%
2020146150 744 S A ST $1,428.94 0.250%
2020146180 700 S A ST $2,280.28 0.398%
2020146190

S OXNARD BL $604.35 0.106%
2020146200

S OXNARD BL $604.35 0.106%
2020146210 723 S OXNARD BL $604.35 0.106%
2020146220 708 S A ST $4,889.15 0.854%
2020380015 651 S A ST $118.49 0.021%
2020380025 653 S A ST $96.05 0.017%
2020380035 655 S A ST $120.69 0.021%
2020380045 657 S A ST $120.69 0.021%
2020380055 659 S A ST $96.05 0.017%
2020380065 661 S A ST $118.49 0.021%
2020380075 211 W SEVENTH ST $120.69 0.021%
2020380085 213 W SEVENTH ST $96.05 0.017%
2020380095 215 W SEVENTH ST $118.49 0.021%
2020380105 645 S A ST $120.69 0.021%
2020380115 643 S A ST $95.36 0.017%
2020380125 641 S A ST $118.49 0.021%
$572,260.99 100.000%

416

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN 34 APPENDIX 2

ODMD

BOUNDARY MAP

417

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

35 418

OXNARD DOWNTOWN MANAGEMENT DISTRICT – MANAGEMENT DISTRICT PLAN

36 ATTACHMENT 1

ASSESSMENT
ENGINEER’S
REPORT

419
Public Hearing on the Renewal and
Expansion of the Oxnard Downtown
Management District
Emilio Ramirez, Director
Housing Department
City Council
July 2, 2024
420
DISCUSSION 2

1. On April 30, 2024, the City Council adopted a Resolution of Intent (Resolution No. 15,773) to renew and expand the District and levy and collect assessments therein, and to hold a public hearing on July 2, 2024.

2. A ballot and informational packet for the renewal of the District was mailed to the property owners within the proposed District boundaries. At the July 2, 2024 public hearing, the City Council will receive public testimony on the renewal of the District and the proposed assessments.

3. The City Clerk will open and count the ballots received at the conclusion of the Public Hearing. In order for the district to be renewed, a weighted majority of ballots received must be in favor of the District renewal. 421
DISCUSSION 3

1. Assuming that a weighted majority of the vote supports the renewal, the City Council may renew the District by adopting a resolution. The term of the District is five fiscal/tax years (calendar operating years), after which a new petition and ballot procedure must be carried out to renew the District again.

2. Since last fall, a District Renewal Committee consisting of Downtown property and business owners has been meeting to formulate the details of the renewal. The Committee determined that the renewal period will be a five-year period (10 years maximum are currently permitted by State Law for renewals) and that a 2025 annual budget of approximately $572,250 be established to be used to continue to provide enhanced maintenance, enhanced security, business development, beautification and related management services.

3. Assessment for the remaining four years may be increased by an amount not to exceed five percent (5%) per year. An annual report is required from the DOIA.
422
DISCUSSION 4

1. The District boundary includes approximately a 32-block area bounded roughly by First Street on the north, the Railroad tracks/Oxnard Boulevard on the east, Eighth Street on the south and C and D Streets on the west.

2. It is noted that District is being expanded to the north to First Street from the centerline of B Street to Oxnard Boulevard. This two-block area includes a combination of commercial parcels associated with Downtown Oxnard along with mixed use parcels with residential rental units.
423

DISTRICT PROPOSAL

1. Under the proposed District renewal, the City/Housing Authority/Parking Authority would be assessed $156,052.78 which will be combined with $416,197.22 from the remaining properties within the proposed renewed/expanded district boundary. The total assessment funds of $572,250 are proposed to be allocated as follows during the first renewal year.
a. Civil Sidewalks: $335,000 (58.5%) – This work plan category includes:
litter pickup and illegal dumping removal, graffiti abatement, trash enclosures cleaning, sidewalk sweeping and pressure washing, gardening, weed removal, security patrols, loitering & trespassing subject removal, and homeless outreach.
5 424

DISTRICT PROPOSAL
a. District Identity and Placemaking: $83,250 (14.5%) – This work plan category includes: website and social media management, newsletters, advertising and media relations, special events production, sidewalk flower planters, public art displays, holiday streetlamp décor, and street banners.
b. Organization: $154,000 (27%) - This work plan category includes professional management and related operation costs of providing services, programs and improvements for the special benefit of each identified and assessed parcel and land use within the District. 6 425
FINANCIAL IMPACT 7

1. The City, Housing and Parking Authorities’ cumulative estimated assessment for the first year of the renewed District will be $156,052 and may be increased by five percent (5%) per year. If the District is renewed the City will be responsible for paying an annual assessment each year, over the next five years.

2. In the City of Oxnard’s 2024-2025 budget, General Funds were approved to support the first year’s assessment.

3. Ongoing assessment payments will be requested annually as part of the City’s budget process.

426

RECOMMENDATION
That City Council:

1.    Conduct a public hearing concerning the renewal and expansion of the Oxnard Downtown Management District ("District") and tabulate the ballots for and against its renewal.

2.    If a weighted majority of the ballots are in support of the renewal of the District, adopt a resolution renewing the District and levying assessments in the District for fiscal year 2024-2025 to fiscal year 2028-2029. 8 427

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. L.1

DATE: July 2, 2024

TO: City Council

FROM: Jason Benites, Police Chief, (805) 385-7624, [email protected]

SUBJECT: Police Department 2023 Annual Military Equipment Use Report. (20 minutes)

RECOMMENDATION

That the City Council:

1. Receive the Police Department's annual report concerning its inventory and use of military equipment, in accordance with Government Code sections 7070-7075.

2. Approve the renewal of City of Oxnard Ordinance 3014, which is codified in Oxnard City Code Section 2-112 as the City’s “Military Equipment Policy” as required by Government Code section 7071 (e)(1).

3. Approve the continuing authorization for the funding, acquisition, and use of military equipment by the Oxnard Police Department’s military equipment inventory as required by Government Code section 7071 (e)(2).

4. Approve the acquisition and use of the following military equipment items:
a. One (1) Transcend tactical Robotic device
b. Nineteen (19) 40mm projectile launchers
c. Twenty-two (22) .223 caliber rifles
d. Five hundred and sixty (560) 40mm projectile rounds and eight (8) sponge round training kits. (This item did not originate in Committee.)

Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/hO9GtnYMzKE

BACKGROUND

On January 1, 2022, California Assembly Bill 481 (AB 481) was codified in Government Code sections 7070 through 7075. AB 481 mandates Law Enforcement Agencies (LEA) to obtain approval from their governing body via the adoption of a “military equipment” use policy by ordinance before the LEA funds, acquires, or uses such equipment. This is specified in Government Code section 7071(a)(1)(A-G).

On June 7, 2022, the Oxnard City Council adopted the Oxnard Police Department Military Equipment Use Policy to allow the Oxnard Police Department to use the equipment specified therein. This policy exists as City of Oxnard Ordinance 3014 (Ordinance), which is codified in Oxnard City Code Section 2-112, and in section 708 of the Oxnard Police Department’s Policy Manual, and went into effect on July 6, 2022. The Ordinance can be found as Attachment (B) to this report, and Oxnard Police Department’s Policy Manual section 708 as Attachment (C)

Government Code section 7071(e)(1) requires that a governing body, in this case the Oxnard City Council, review any ordinance that it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment, and vote on whether to renew the ordinance at a regular meeting.

Government Code section 7071(e)(2) states that a governing body, in this case the Oxnard City Council, shall determine, 428
based on the submitted annual military equipment report submitted whether each type of military equipment identified in that report has complied with the standards for approval. Per Government Code 7071(d)(1)(A-D), the required standards for approval are:
• The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
• The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.
• If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. • Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

Annual Military Equipment Report (Attachment A)

California Government Code 7072 (a)(1-6) requires, after receiving approval for its military equipment use policy, the LEA to submit an annual military equipment report providing certain required information for each type of military equipment approved by the governing body for as long as the equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
• The quantity possessed for each type of military equipment. • A summary of how military equipment was used and the purpose of its use. • A summary of any complaints or concerns received concerning military equipment. • The results of any internal audits, information about violations of military equipment use policy, and any actions taken in response.
• The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.
• If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

Police Department’s “Military Equipment” Inventory

Government Code section 7070(c)(1-16) defines “military equipment” and lists fifteen (15) specific categories that are considered “military equipment.” The Oxnard Police Department possesses and/or uses equipment from only seven (7) of these categories. The annual report cites an eighth category, for equipment that the Police Department does not actually possess, but is deployed by another LEA when requested to assist. The categories and specific equipment currently used by the Oxnard Police Department are listed below and are further described in the attached “Military Equipment Inventory.”

Below is a summary of the Oxnard Police Department’s military equipment inventory. The equipment is listed in accordance with the Government Code sections that govern its designation as “military equipment.” Additional details are in Oxnard Police Department Policy Manual section 708, included as an attachment to this report.

7070(c)(1): Unmanned, remotely piloted, powered aerial or ground vehicles. • Unmanned aerial vehicles (Drones): 7
• Unmanned aerial vehicle (drone) usage: There were 115 drone deployments in 2023, broken down as follows:
o 25 for field operations support (area searches)
o 42 for tactical assists (SWAT operations)
o 20 for crime scene documentation
429
o 12 for special events support
o 9 for area mapping
o 7 for training
• Annual cost: $23,677 for drone replacement costs in 2023. • Remotely piloted ground vehicles: 1
• Remotely piloted ground vehicle usage: Zero (0) deployments in 2023. • Cost: $12,433.87 initial purchase.

7070(c)(3): High mobility multipurpose wheeled vehicles (HMMWV), called Humvees, two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles with a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision. • LENCO© Bearcat armored rescue vehicles (ARV): 2
• ARV usage: There were 41 ARV deployments in 2023, broken down as follows:
o 9 for responses to armed subjects and patrol assists
o 22 for search warrants
o 10 for community engagement events
• Annual cost: $1,100 estimated average annual maintenance per unit in 2023.

7070(c)(4): Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.
• The Oxnard Police Department does not possess any equipment from this category in its inventory. • However, the Ventura County Sheriff’s Office possesses a tracked armored skid steer loader (referred to as “The Rook”), which is available to assist other agencies in the County, including Oxnard. Pursuant to Government Code section 7071(a)(1)(D), an LEA must obtain approval from the governing body when “Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body.”
• Rook usage: In 2023, the Ventura County Sheriff’s Office assisted the Oxnard Police Department on one (1) occasion, for a SWAT warrant service.
• There were no complaints received concerning the use of this equipment. • There were no violations of policy concerning the use of this equipment. • Annual cost: Zero (0) cost to the City of Oxnard in 2023.

7070(c)(5): Command and control vehicles that are either built or modified to facilitate public safety units’ operational control and direction.
• Total number of command and control vehicles: 13
o Large mobile command vehicles: 2
o Vans: 2
o DUI enforcement command trailer: 1
o Police Ford Explorer forward command post vehicles: 8 • Command and control vehicle usage: There were 117 deployments in 2023, broken down as follows:
o 85 times for the Drone unit van.
o 10 times for the large mobile command post (major crimes and community events. o 12 times for the traffic unit
o 10 times for crime scene mapping
• Annual cost: Approximately $63,400 for the 13 vehicles each year (fuel and maintenance).

7070(c)(7): Battering rams, slugs, and breaching apparatuses that are explosive in nature. • Frangible breaching shotguns: 2
430
• Breaching shotgun usage: Zero (0) times throughout the year. • Annual cost: No associated costs with this item in 2023.

7070(c)(10): Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard-issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.
• Total number of specialized firearms: 169
o Remington .308 caliber rifles: 5
o Accuracy International AT .308 caliber rifles: 6
o Colt .223 caliber rifles: 107
o Sionics .223 caliber rifles: 51
• Rifle usage: The Police Department deployed rifles in 65 incidents in 2023, and these were limited to the pointing of firearms only. There were zero (0) instances of Oxnard Police Department personnel discharging a rifle of this type at a member of the public.
• Annual cost: No .223 rifle ammunition was purchased in 2023. Rifle maintenance was approximately $1,200. .308 caliber rifle ammunition cost $16,587. Maintenance was unnecessary since the Accuracy International AT rifles were purchased in 2023.

7070(c)(12): “Flashbang” grenades and explosive breaching tools, ‘tear gas,’ and ‘pepper balls,’ excluding standard, service-issued handheld pepper spray.

For clarification, the term “flashbang” is commonly used to refer to “light, sound, diversionary devices” (LSDD). “Tear gas” is the term commonly used to describe 2-chlorobenzalmalononitrilegas, also referred to as “CS.” The Police Department’s inventory includes:
• Combined Tactical Systems (CTS) LSDD: 164
• CTS 5230B CS gas canisters: 34
• Defense Technology Triple Chaser CS gas: 12
• Defense Technology Spede-Heat CS gas: 16
• Defense Technology CS Ferret rounds: 18
• Defense Technology OC/CS vapor: 12
• Defense Technology OC vapor: 10
• Pepperball launchers: 13
• Flashbang usage: The Police Department deployed flashbangs 16 times in 2023. o It is important to note that flashbangs deployed alone, without other equipment, successfully gained suspect compliance on 13 of the 16 occasions, eliminating the necessity for any additional force tactics. • Annual cost: $4,408.18 for 2023 replenishment costs. • Gas usage: The Police Department deployed CS gas 3 times in 2023, under the following circumstances:
o 1 for a barricaded suspect in a vehicle, in which the suspect refused to exit their vehicle. o 2 for warrant services where the suspects refused to exit their residences. • Annual cost: $2,173 for 2023 replenishment costs.
• Pepperball usage: 4 times throughout the year.
o In all 4 instances, the device was successfully used to take a non-compliant suspect into custody. • Annual cost: No associated costs with this item in 2023.

7070(c)(14): The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons. • Penn Arms 40mm less lethal projectile launchers: 4
o 10 direct impact sponge CS rounds
o 10 direct impact sponge OC rounds
• 40mm projectile usage: Zero (0) times throughout the year. 431
• Annual cost: No associated costs with this item in 2023. • Remington 870 less lethal (“bean bag”) shotguns: 22
o Less lethal shotgun usage: 1 time in 2023.
o The less lethal shotgun was deployed in an attempt to take a non-compliant suspect into custody. o Annual cost: No associated costs with this item in 2023.

The Oxnard Police Department intends to maintain sufficient stock of specific equipment to maintain standards and operational readiness. The Police Department routinely orders replacement stock to maintain the levels of equipment enumerated in the “Military Equipment Inventory.”

Additional Reported Information

Government Code section 7072(a)(1-6) requires the Police Department to annually report additional information, beyond inventory quantities, related to its “military equipment.” Below is a summary of the annual use of Police Department’s inventory, complaints, policy violations related to the equipment, annual costs, and financial impacts related to the equipment:
• Inventory: Quantities of this equipment are stated in an attachment to Oxnard Police Department Policy Manual section 708 (Included as attachment C)
• Complaints: There were no specific community complaints or concerns received involving specific deployments of any of the Police Department’s “military equipment” in 2023. • Violations of Policy: There were no violations of Oxnard Police Department Policy Manual section 708 (Military Equipment Policy).

To ensure the accuracy of the data, both the Special Operations Division Commander and the Professional Standards Division staff track the use of equipment that meets AB 481’s definition of “military equipment.” This ensures proper usage and tracking of deployments.

Ongoing maintenance and replacement costs for all the equipment are included in the Police Department’s budget and continue to be accounted for there. Expenditures for such equipment are appropriate and seek to minimize the impact on Oxnard’s General Fund. The Police Department makes a conscious effort to fund replenishment and new additions with Asset Forfeiture Funds (AFF) and/or Supplemental Law Enforcement Services Funds (SLESF), which do not affect the City’s General Fund.

Need for Equipment Authorization

AB 481 requires the governing body’s approval of this annual report. The equipment listed in the annual report and used by the Oxnard Police Department is necessary for public safety operations, and there are no other practical alternatives that can achieve the same community safety objectives.

A significant amount of the Police Department’s “military equipment” are “less lethal” devices that are designed to provide force options that serve to avoid the use of lethal force. As such, the equipment’s use and accompanying policies safeguard the public’s welfare, safety, civil rights, and civil liberties.

Requested Equipment Acquisitions (from “Recommendation” above)

The Police Department is requesting the City Council’s authorization to make the following “military equipment” acquisitions:

1. The Police Department intends to acquire a Transcend Robotics Vantage Robot, which qualifies as a “remotely piloted ground vehicle.” This device is used to enter structures to locate violent, often armed, subjects wanted for violent crimes. This equipment provides a safer option for officers to get a view into a building or structure through the robot’s camera system, and decreases the likelihood of a lethal force encounter. The robot’s two-way communications system allows officers to de-escalate, communicate, and negotiate compliance or surrender. This robot has the ability to safely deploy Oleoresin Capsicum (OC) and 2-chlorobenzalmalononitrile (CS) gas remotely. This type of gas is used to bring suspects out of hiding, and increases the likelihood that they will comply. Though this item falls under the Government 432
Code's definition of "military equipment," it is essential to note that it has no weapons, no armor, and no materials furnished by the military. The total cost to purchase this robot is $62,818, and will be paid for with Supplemental Law Enforcement Services Fund (SLESF). There would be no impact on the City’s General Fund.

Transcend Robotics Vantage Robot

2. The Police Department intends to acquire nineteen (19) additional 40mm projectile launchers. These less lethal tools allow officers to engage violent, potentially armed suspects from a safe distance, allowing officers to attempt de- escalation techniques. These types of less-lethal projectiles often prevent officers from using lethal force. The total cost to purchase these 40MM launchers is approximately $51,240, which will be paid using Asset Forfeiture Funds (AFF) and Supplement Law Enforcement Services Fund (SLESF). There would be no impact on the City’s General Fund.

Penn Arms 40mm projectile launchers (single and six-shot models)

3. The Police Department intends to replace/acquire twenty-two (22) .223 caliber rifles for the department’s SWAT team. The rifles currently assigned to the SWAT team are over twenty years old, significantly exceeding their expected lifespan of five to seven years under SWAT team conditions, rendering them overdue for replacement. The SWAT team needs rifles for increased firepower and accuracy in situations that require the ability to engage targets at longer distances, penetrate barriers, and effectively address threats, while minimizing risk to officers and members of the public. These rifles also provide a tactical advantage in addressing high-risk scenarios such as active shooter situations or dealing with heavily armed suspects, allowing SWAT teams to maintain control and respond decisively to potential threats. The total cost to purchase these rifles is $57,920 and will be paid using Justice Administration Grant funds. There would be no impact on the General Fund.

Sionics Patrol Rifle

4. The Police Department’s 40mm inventory has become depleted over the last year due to expired rounds and use during previous deployments. To replenish the inventory, the Police Department needs to purchase five hundred (500) exact impact sponge rounds, twenty (20) direct impact sponge rounds with OC gas, twenty (20) direct impact rounds with CS gas, and twenty (20) direct impact sponge rounds (green marking). The cost to purchase these rounds is $14,799.44, which will be paid using the General Fund. The Police Department must also purchase eight (8) sponge round training kits. The cost to purchase these training rounds is $11,432.80, which will be paid using the General Fund.

433

40mm projectiles (not shown to scale)

Transparency

Government Code section 7071(b) requires any proposed or final military equipment use policy shall be made publicly available on the internet website of the relevant LEA for as long as the military equipment is available for use.

This information is available to the public on the Oxnard Police Department's website, at https://sites.google.com/oxnardpd.org/ab-481/ab-481.

STRATEGIC PRIORITIES

This agenda item supports Public Safety strategy. The purpose of the Public Safety strategy is to restore and modernize the delivery of public safety services to provide for the safety of our neighborhoods and health of our community.

FINANCIAL IMPACT

There is sufficient FY2024-25 budget available to fund the equipment acquisitions from the following funding sources:

General Fund (101), Federal Asset Seizure Fund (191), State and Local Grant Fund (210) and Federal Grant Fund - Justice Assistance Grant (200), as well as sufficient corresponding budget in the Capital Outlay Fund (301) applicable to capital projects.

For Finance Use Only: General Fund (Org. 1012111 Obj. 52900), Federal Asset Seizure Fund (Org. 1912131 Obj. 52400) Project M2005, State and Local Grant Fund -SLESF (Org. 2101001 Obj. 59800) Project C2418, Federal Grant Fund (Org. 2001001 Obj. 59800) Project C2318., Capital Outlay Fund (Org. 3012131 Obj. 56040) Projects C2318 & C2418

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Daniel Whitmer, Police Commander

ATTACHMENTS

1. Attachment A 2023 OXPD Military Equipment Annual Report.FINAL

2. Attachment B Oxnard Military Equipment Ordinance

3. Attachment C 2023 Military Equipment (Policy Manual 708.9)

4. Attachment D Police Department 2023 Military Equipment Report (PowerPoint) PDF

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OxnardPoliceDepartment2023AnnualMilitaryEquipmentReport JasonBenites,ChiefofPolice
435
OxnardPoliceDepartment2023Annual MilitaryEquipmentReport Background
Overthecourseofthepastseveralyears,criticismanddebatehasspreadacrossthenationconcerningthenarrativeofmilitarizedpolicingintheUnitedStates.OnSeptember30,2021,CaliforniaGovernorGavinNewsomsignedlegislationaimedatreforminglawenforcementagency(LEA)funding,acquisitionanduseof specifictypesof"militaryequipment." Thislegislation,referredtoasAssemblyBill481(AB481),wasauthoredbyCaliforniaAssemblymemberDavidChiu(D-SanFrancisco)toaddressandregulatethefunding,acquisition,anduseof militaryequipmentbyLEA’s.

EnactedintoGovernmentCodesections7070through7075asofJanuary1,2022,AB481’s intentis to increasetransparencybywhichCalifornialawenforcementagenciesfund,acquire,and/oruse whatthis legislationdefinesas “militaryequipment.” AB481mandatesLEA’sobtainapprovalfromtheirgoverningbodyviatheadoptionof a “militaryequipment”usepolicy(Policy)byordinancebeforetheLEAfunds,acquires,orusessuchequipment. Insummary, AB481statesinGovernmentCodesection7071(a)(1)(A-G),thatLEA’sshallobtainapprovaloftheirgoverningbody, byanordinanceadoptinga militaryequipmentusepolicyata regularmeetingofthegoverningbodypriortoengaginginanyofthefollowing:● Requestingmilitaryequipmentmadeavailablepursuanttosection2576aofTitle10oftheUnitedStatesCode.● Seekingfundsformilitaryequipment.● Acquiringmilitaryequipment.● Collaboratingwithanotherlawenforcementagencyinthedeploymentorotheruseof militaryequipmentwithintheterritorialjurisdictionof thegoverningbody.● Usinganyneworexistingmilitaryequipment.● Solicitingorrespondingtoaproposalfor, orenteringintoanagreementwith,anyotherpersonorentitytoseekfundsfor, applytoreceive,acquire,use,orcollaborateintheuseof,militaryequipment.

GovernmentCodesection7070(d)(1-7)alsorequiresthatan LEA’s militaryequipmentpolicyaddress,ataminimum,discloseallofthefollowing:● A descriptionof eachtypeof militaryequipment,thequantitysought,itscapabilities,expectedlifespan,and productdescriptionsfrom themanufacturerofthemilitaryequipment.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport ● Thepurposesandauthorizedusesforwhichthelawenforcementagencyorthestateagencyproposestouseeachtypeofmilitaryequipment.● Thefiscalimpactofeachtypeofmilitaryequipment,includingtheinitialcostsof obtainingtheequipmentandestimatedannualcostsof maintainingtheequipment.● Thelegalandproceduralrulesthatgoverneachauthorizeduse.● Thetraining,includinganycourserequiredbytheCommissiononPeaceOfficerStandardsandTraining,thatmustbecompletedbeforeanyofficer,agent,or employeeof thelawenforcementagencyorthestateagencyisallowedto useeachspecifictypeof militaryequipmentto ensurethefullprotectionofthepublic’swelfare,safety, civilrights,andcivillibertiesandfulladherencetothemilitaryequipmentusepolicy.● Themechanismstoensurecompliancewiththemilitaryequipmentusepolicy,includingwhichindependentpersonsorentitieshaveoversightauthority,and,ifapplicable,whatlegallyenforceablesanctionsareputinplaceforviolationsofthepolicy.● Fora lawenforcementagency, theproceduresbywhichmembersof thepublicmayregistercomplaintsorconcernsorsubmitquestionsabouttheuseof eachspecifictypeof militaryequipment,andhowthelawenforcementagencywillensurethateachcomplaint,concern,or questionreceivesaresponseinatimelymanner.

OnJune7, 2022,theOxnardCityCounciladoptedtheOxnardPoliceDepartment’sMilitaryEquipmentUsePolicy, authorizingtheOxnardPoliceDepartmentto usetheequipmentspecifiedtherein.Thispolicyexistsas Cityof OxnardOrdinance3014(Ordinance),whichiscodifiedinOxnardCityCodeSection2-112,andinsection708oftheOxnardPoliceDepartment’sPolicyManual,(Policy).ThesewentintoeffectonJuly6,2022.

TheOrdinance,Policy, andAB481relatedinformationareavailabletothepublicontheOxnardPoliceDepartment’swebsiteat:(https://sites.google.com/oxnardpd.org/department-policy-manual/department-policy-manual).

StandardsofApproval
GovernmentCodesection7071(e)(1)requiresthatanLEA’sgoverningbody,inthiscasetheOxnardCityCouncil,reviewtheordinancethatitadoptedthatapprovesthe Page3of16
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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport funding,acquisition,oruseofmilitaryequipment,andvoteonwhethertorenewtheordinanceataregularmeeting.

GovernmentCodesection7071(e)(2)statesthatagoverningbody,inOxnard’scaseits OxnardCityCouncil,shalldetermine,basedonthesubmittedannualmilitaryequipmentreportsubmittedwhethereachtypeofmilitaryequipmentidentifiedinthatreporthascompliedwiththe standardsfor approval. PerGovernmentCode7071(d)(1)(A-D),therequiredstandardsforapprovalarethat:● The militaryequipmentis necessarybecausethereis no reasonablealternativethatcanachievethesameobjectiveofofficerandciviliansafety.● Theproposedmilitaryequipmentusepolicywill safeguardthe public’swelfare,safety, civilrights,andcivilliberties.● If purchasingthe equipment,the equipmentis reasonablycosteffectivecomparedto availablealternativesthatcanachievethesameobjectiveofofficerandciviliansafety.● Priormilitaryequipmentusecompliedwiththemilitaryequipmentusepolicythatwasin effectat thetime,or if priorusesdidnotcomplywiththeaccompanyingmilitaryequipmentusepolicy, correctiveactionhasbeentakentoremedynonconformingusesandensurefuturecompliance.

PerGovernmentCodesection7071(e)(2),“IfthegoverningbodydeterminesthatatypeofmilitaryequipmentidentifiedintheLEA’sannualmilitaryequipmentreporthasnot compliedwiththe standardsfor approval,thegoverningbodyshalleitherdisapprovea renewalof theauthorizationforthattypeof militaryequipment,orrequiremodificationsto theMilitaryEquipmentUsePolicyin a mannerthatwillresolvethelackofcompliance.” OxnardPoliceDepartmentMeetsStandardsofApproval
ThemilitaryequipmentthattheOxnardPoliceDepartmentpossessesisconsistentwithlawenforcementprofessionnormsintheUnitedStates.Suchequipmenthasbeentestedinthefield,hasbeensuccessfullydeployedinthefield,andareusedbyLEA’s acrossthenationforthepurposesof enhancingboththesafetyof peaceofficersandthepublicthattheyserve.

TheOxnardPoliceDepartmentis committedto usingcontemporarytoolsandequipmentto safeguardthepublicthatit serves.Manyof theitemsdeemedas“militaryequipment”by AB 481havebeenemployedby the OxnardPoliceDepartmentandLEA’sacrossthenationforaconsiderableamountoftime,inorder Page4of16
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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport tospecificallyprotectandreducerisktocommunitymembers.Theseitemsprovidepeaceofficerswiththeabilityto safelyresolvevolatilesituationswhichotherwisemightriseto thelevelof lethalforceencounters.To thatend,theequipmentofdiscussioninthisreport,andtheaccompanyingMilitaryEquipmentUsePolicy, alsoprovideOxnardPoliceDepartmentpersonnelwith vital toolsthat facilitatecompliancewithitsrobustuseofforcepolicyandreportingprocedures.

TheOxnardPoliceDepartment’s inventoryalsocontainsitemsthataredesignedtoprotectofficersandmembersof thepublic.Forexample,thearmoredrescuevehicles(ARV’s) aredesignedto shieldofficersandmembersof thepublicfromgunfireorotherthreats,andhavebeensuccessfullyusedtothiseffect.

TheOxnardPoliceDepartment’s inventoryof commandandcontrolvehiclesareunarmedplatformsthatarevitaltocoordinatingpublicsafetyresourcesinavarietyofcircumstances,rangingfromtacticalincidentsto naturaldisasters.Theyareessentialto facilitatingthe safestoutcomesby promotingcommunicationandresourcecoordination,bothofwhichareessentialtoprotectingthepublic’swelfare,safety, civilrights,andcivilliberties.

Denialorlossoftheuseofthesepreviouslyapproveditemswoulddetractfromthewelfareof communitymembersandpeaceofficerswithinthe OxnardPoliceDepartment,asthatwouldeliminateresourcesoroptionsthatcouldmoresafelyandpeacefullyconcludeincidents.Forexample,thelossofanagencytodeploy“lesslethal”equipmentwouldeliminateanoptionthatcouldhavebeenusedto endavolatilesituationwithouttheuseoflethalforce.

Ongoingmaintenanceandreplacementcostsforalltheequipmentareincludedinthe PoliceDepartment’s budgetand continueto be accountedfor there. ExpendituresforsuchequipmentareappropriateandseektominimizetheimpacttoOxnard’s GeneralFund.ThePoliceDepartmentmakesa consciousefforttofundreplenishmentand newadditionswithAssetForfeitureFunds(AFF)and/orSupplementalLawEnforcementServicesFunds(SLESF),bothofwhichdonotaffecttheCity’sGeneralFund.

Thereis significantinterestin ensuringthatlawenforcementcontinuesto haveaccesstoequipmentthatwillprovidepeaceofficersasmanyoptionsaspossibletosafeguardlives,ensuresafety, andprotectcivilliberties.Theuseoftheequipmentidentifiedin thePolicyisvitaltotheOxnardPoliceDepartment’s mission,andwillcontinueto be strictlyregulatedthroughinternalprocessesandmanagementoversight.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport To ensurethe accuracyof the data,boththe SpecialOperationsDivisionCommander, andtheProfessionalStandardsDivisionstaff closelytracktheuseofequipmentthatmeetsAB481’s definitionof “militaryequipment.” Thisensuresproperusageandtrackingof deployments.In theeventof policyviolations,managementiswellpositionedtoapplycorrectiveaction,whetherthroughtrainingandeducation,anduptothedisciplinaryprocessshouldthatbecomenecessary. Ofnote,therewerenocommunitycomplaintsaboutspecificdeploymentsofOxnard’s“militaryequipment”in2023,noinstancesofinappropriateuse,andnoviolationsofpolicyrelatedtothesame.

Criteriafor“MilitaryEquipment”Designation
Overthepastseveraldecades,manyLEA’s acrosstheUnitedStatesacquiredavarietyofmilitarysurplusequipmentfromthefederalgovernment,andincorporatedtheiruseintolawenforcementoperations.ThefederalprogramthatcurrentlyhoststhisistheDefenseLogisticsAgency's1033Program. Otherformsofthisprogramincludedthe formerDefenseReutilizationMarketingOffice(DRMO)Program.Generallyspeaking,theequipmentfurnishedtoLEA’swasintendedtobenecessaryorbeneficialtooperations,intendedtoimprovethesafetyofofficersaswellasthepublic,andhelpedagenciesacquiresuchequipmentinthefaceoflimitedbudgets.Thematerialsprovidedbytheseprogramswereverydiverse,andincludeditemsrangingfromofficefurniture/equipment,togasmasksandrifles.Theseprogramsalsofurnishedcivilian-typevehicles,aswellasmilitary-purposeonessuchasHighMobilityMultipurposeWheeledVehicles(Humvees).Atsomepointinthepasttwodecades,a numberof LEA’s acrossthenationreceivedlarger(12+ton)MineResistantAmbushProtected(MRAP)armoredvehicles.

TheOxnardPoliceDepartmentneverrequested,norreceived,HumveesorMRAParmoredvehicles,andnolongerrequestsorprocuresequipmentfromsuchsurplusprograms.In previousyears,theOxnardPoliceDepartmentaccepteda limitedvarietyof items,includinggasmasks,helmets,older-generationrifles,andrifleoptics.TheseitemsarenolongerintheDepartment’sinventory.

UnderAB481,theterm“militaryequipment”expandsbeyondequipmentthathasadefaultapplicationtomilitaryuse.Italsoexpandsbeyondtheequipmentofferedbytheabove-mentionedDRMOand1033programs. Itisimportanttonotethatmanyitemsqualifyingas “militaryequipment”underAB 481 are not necessarilymanufacturedspecificallyfortheUnitedStatesmilitary.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport SomeoftheitemsthatfallunderAB481’s definitionof“militaryequipment”canbepurchasedbyciviliansin anopenmarket.Forexample,civilianmembersof thepubliccanretailpurchaseanunmannedaerialvehicle,morecommonlyreferredtoas a “drone.”Underthiscircumstance,a droneis notconsideredas“militaryequipment.”However, ifanLEAacquiresthesamepieceofequipmentinthesamemanner, it isconsidered“militaryequipment”byAB481.SuchisalsothecaseforAR-15stylerifles,whichthecivilianpubliccanpurchase.

UnderAB481,GovernmentCodesection7070(c)(1-15)defines“militaryequipment”withfifteen(15)specificcategories.Theyare:

1. Unmanned,remotelypiloted,poweredaerialorgroundvehicles.2. Mine-resistantambush-protected(MRAP)vehiclesor armoredpersonnelcarriers.However, policeversionsof standardconsumervehiclesarespecificallyexcludedfromthissubdivision. 3. Highmobilitymultipurposewheeledvehicles(HMMWV),commonlyreferredtoasHumvees,twoandone-half-tontrucks,five-tontrucks,orwheeledvehiclesthathavea breachingor entryapparatusattached.However, unarmoredall-terrainvehicles(ATVs)andmotorizeddirtbikesarespecificallyexcludedfromthissubdivision. 4. Trackedarmoredvehiclesthatprovideballisticprotectiontotheiroccupantsandutilizeatrackedsysteminsteadofwheelsforforwardmotion. 5. Commandandcontrolvehiclesthatareeitherbuiltormodifiedtofacilitatetheoperationalcontrolanddirectionofpublicsafetyunits.6. Weaponizedaircraft,vessels,orvehiclesofanykind. 7. Batteringrams,slugs,andbreachingapparatusesthatareexplosiveinnature.However, itemsdesignedtoremovealock,suchasboltcutters,orahandheldramdesignedto be operatedby oneperson,arespecificallyexcludedfromthissubdivision.8. Firearmsof .50caliberor greater. However, standardissueshotgunsarespecificallyexcludedfromthissubdivision. 9. Ammunitionof .50 caliberor greater. However, standardissueshotgunammunitionisspecificallyexcludedfromthissubdivision. 10. Specializedfirearmsandammunitionof lessthan.50caliber, includingassaultweaponsasdefinedinSections30510and30515ofthePenalCode,withtheexceptionofstandardissueserviceweaponsandammunitionoflessthan.50caliberthatareissuedto officers,agents,oremployeesof a lawenforcementagencyorastateagency.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport

11. Anyfirearmor firearmaccessorythatis designedto launchexplosiveprojectiles.12. “Flashbang”grenadesandexplosivebreachingtools,“teargas,”and“pepperballs,”excludingstandard,service-issuedhandheldpepperspray.13. TaserShockwave,microwaveweapons,watercannons,andtheLongRangeAcousticDevice(LRAD). 14.Thefollowingprojectilelaunchplatformsandtheirassociatedmunitions:40mmprojectilelaunchers,“beanbag,”rubberbullet,andspecialtyimpactmunition(SIM)weapons.15.Anyotherequipmentasdeterminedbyagoverningbodyorastateagencytorequireadditionaloversight.

TheOxnardPoliceDepartmentpossessesand/orusesequipmentfromonlyseven(7)ofAB481’sfifteen(15)militaryequipmentcategories.Thisreportcitesaneighthcategory, for equipmentthatthe OxnardPoliceDepartmentdoesnot actuallypossess,butisdeployedbyanotherLEAwhenrequestedtoassist. ThecategoriesandspecificequipmentcurrentlyusedbytheOxnardPoliceDepartmentarelistedlaterin thisreport,andarefurtherdescribedin theattached“MilitaryEquipmentInventory”whichis a partoftheOxnardPoliceDepartmentPolicyManualsection708(Policy).

MilitaryEquipmentReport
CaliforniaGovernmentCode7072(a)(1-6)requiresLEA’stosubmitanannualmilitaryequipmentreportprovidingcertainrequiredinformationfor eachtypeof militaryequipmentapprovedbythegoverningbodyforaslongastheequipmentisavailableforuse.Theannualmilitaryequipmentreportshallat a minimum,includethefollowinginformationfor the immediatelyprecedingcalendaryearfor eachtypeof militaryequipment:● Thequantitypossessedforeachtypeofmilitaryequipment.●
Asummaryofhowmilitaryequipmentwasusedandthepurposeofitsuse. ● A summaryof any complaintsor concernsreceivedconcerningmilitaryequipment. ● Theresultsof anyinternalaudits,informationaboutviolationsof militaryequipmentusepolicy, andanyactionstakeninresponse. ● Thetotalannualcostforeachtypeofmilitaryequipment,includingacquisition,personnel,training, transportation,maintenance,storage,upgrade,andotherongoingcosts, andfromwhatsourcefundswillbeprovidedforthemilitary Page8of16
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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport equipmentin the calendaryearfollowingsubmissionof theannualmilitaryequipmentreport. ● Ifthelawenforcementagencyintendstoacquireadditionalmilitaryequipmentinthenextyear, thequantitysoughtforeachtypeofmilitaryequipment.

NoCommunityComplaints
TherewerenospecificcommunitycomplaintsorconcernsreceivedinvolvingspecificdeploymentsofanyofthePoliceDepartment’s“militaryequipment”in2023.

NoViolationsofPolicy
Therewerenoinstancesofinappropriateuseofthisequipmentin2023.

Therewereno violationsof OxnardPoliceDepartmentPolicyManualsection708(MilitaryEquipmentPolicy)relativeto“militaryequipment”in2023.

OxnardPoliceDepartment’sMilitaryEquipmentInventory
Belowis a summaryoftheOxnardPoliceDepartment’s militaryequipmentinventory.TheequipmentislistedinaccordancewiththeGovernmentCodesectionsthatgovernits designationas “militaryequipment.”Additionaldetailsare in OxnardPoliceDepartmentPolicyManualsection708,includedasanattachmenttothisreport. 7070(c)(1):Unmanned,remotelypiloted,poweredaerialorgroundvehicles.● Unmannedaerialvehicles(drones): 7●
Unmannedaerialvehicle(drone)usage:Therewere115dronedeploymentsin2023,brokendownasfollows:● 25forfieldoperationssupport(areasearches) ● 42fortacticalassists(SWAToperations) ● 20forcrimescenedocumentation● 12forspecialeventssupport● 9forareamapping● 7fortraining ● Annualcost: $23,677fordronereplacementcostsin2023.●
Remotelypilotedgroundvehicles: 1●
Remotelypilotedgroundvehicleusage: Zero(0)deploymentsin2023. ● Cost:$12,433.87initialpurchase.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport 7070(c)(3):Highmobilitymultipurposewheeledvehicles(HMMWV),calledHumvees,two-and-one-half-tontrucks,five-tontrucks,orwheeledvehicleswithabreachingorentryapparatusattached. However, unarmoredall-terrainvehicles(ATVs)andmotorizeddirtbikesarespecificallyexcludedfromthissubdivision.● LENCO©Bearcatarmoredrescuevehicles(ARV): 2●
ARVusage: Therewere41ARVdeploymentsin2023,brokendownasfollows:● 9forresponsestoarmedsubjectsandpatrolassists ● 22forsearchwarrants ● 10forcommunityengagementevents ● Annualcost: $1,100estimatedaverageannualmaintenanceperunitin2023. 7070(c)(4):Trackedarmoredvehiclesthatprovideballisticprotectionto theiroccupantsandutilizeatrackedsysteminsteadofwheelsforforwardmotion.● TheOxnardPoliceDepartmentdoesnotpossessanyequipmentfromthiscategoryinitsinventory.● However, theVenturaCountySheriff’sOfficepossessesatrackedarmoredskidsteerloader(referredtoas“TheRook”),whichisavailabletoassistotherLEAsin VenturaCounty, includingOxnard. Pursuantto GovernmentCodesection7071(a)(1)(D),an LEAmustobtainapprovalfromthegoverningbodywhen“Collaboratingwithanotherlawenforcementagencyinthedeploymentorotheruseofmilitaryequipmentwithintheterritorialjurisdictionofthegoverningbody.”● Rookusage:In 2023,theVenturaCountySheriff’s OfficeassistedtheOxnardPoliceDepartmentonone(1)occasion,foraSWATwarrantservice.● Therewerenocomplaintsreceivedconcerningtheuseofthisequipment.● Therewerenoviolationsofpolicyconcerningtheuseofthisequipment.● Annualcost:Zero(0)costtotheCityofOxnardin2023.
7070(c)(5):Commandandcontrolvehiclesthatareeitherbuiltormodifiedtofacilitatepublicsafetyunits’operationalcontrolanddirection.● Totalnumberofcommandandcontrolvehicles:13●
Largemobilecommandvehicles:2●
Vans:2●
DUIenforcementcommandtrailer:1●
PoliceFordExplorerforwardcommandpostvehicles:8●
Commandandcontrolvehicleusage: Therewere117deploymentsin2023,brokendownasfollows: ● 85fortheDroneunitvan.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport ●
10forthelargemobilecommandpost(majorcrimesandcommunityevents)● 12forthetrafficunit●
10formajorcrimeincidentsforcrimescenemapping●
Annualcost: Approximately$63,400forthe13vehicleseachyear(fuelandmaintenance). 7070(c)(7):Batteringrams,slugs,andbreachingapparatusesthatareexplosiveinnature. ● Frangiblebreachingshotguns:2●
Breachingshotgunusage: Zero(0)timesin2023. ●
Annualcost: Noassociatedcostswiththisitemin2023.
7070(c)(10):Specializedfirearmsand ammunitionof lessthan.50 caliber,includingassaultweaponsasdefinedin Sections30510and30515ofthePenalCode,withtheexceptionofstandard-issueserviceweaponsandammunitionoflessthan.50caliberthatareissuedtoofficers,agents,oremployeesofa lawenforcementagencyorastateagency.● Totalnumberofspecializedfirearms:169●
Remington.308caliberrifles:5●
AccuracyInternationalAT.308caliberrifles:6●
Colt.223caliberrifles:107●
Sionics.223caliberrifles:51●
Rifleusage: ThePoliceDepartmentdeployedriflesin65incidentsin2023.Itisimportanttonotethatthesewerelimitedtothepointingoffirearmsonly. TherewerenoinstancesofOxnardPoliceDepartmentpersonneldischargingarifleofthistypeatamemberofthepublic. ● Annualcost: No .223rifle ammunitionwaspurchasedin 2023. Riflemaintenancewasapproximately$1,200..308caliberrifleammunitioncost$16,587.MaintenancewasunnecessarysincetheAccuracyInternationalATrifleswerepurchasedin2023. 7070(c)(12):“Flashbang”grenadesandexplosivebreachingtools,‘teargas,’and‘pepperballs,’excludingstandard,service-issuedhandheldpepperspray.

Forclarification,theterm“flashbang”is commonlyusedto referto “light,sound,diversionarydevices”(LSDD). “Teargas”is thetermcommonlyusedto describe2-chlorobenzalmalononitrilegas,alsoreferredto as“CS.” ThePoliceDepartment’sinventoryincludes:

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport ●
CombinedTacticalSystems(CTS)LSDD:164●
CTS5230BCSgascanisters:34●
DefenseTechnologyTripleChaserCSgas:12 ●
DefenseTechnologySpede-HeatCSgas:16●
DefenseTechnologyCSFerretrounds:18●
DefenseTechnologyOC/CSvapor:12●
DefenseTechnologyOCvapor:10●
Pepperballlaunchers:13
●
Flashbangusage: 16timesin2023.●
It is importantto notethatflashbangsdeployedalone,withoutotherequipment,successfullygainedsuspectcomplianceon 13 of the 16occasions,eliminatingthenecessityforanyadditionalforcetactics. ● Annualcost:$4,408.18forreplenishmentcostsin2023.
●
Gasusage: ThePoliceDepartmentdeployedCSgas3timesin2023,underthefollowingcircumstances: ● 1forabarricadedsuspectinavehicle,inwhichthesuspectrefusedtoexittheirvehicle.● 2forwarrantserviceswherethesuspectsrefusedtoexittheirresidences. ● Annualcost:$2,173for2023replenishmentcosts.
●
Pepperballusage: 4timesin2023.●
In all 4 instances,the devicewas successfullyusedto takeanon-compliantsuspectintocustody. ● Annualcost: Noassociatedcostswiththisitemin2023.
7070(c)(14):The followingprojectilelaunchplatformsandtheirassociatedmunitions:40mmprojectilelaunchers,“beanbag,”rubberbullet,andspecialtyimpactmunition(SIM)weapons.● PennArms40mmlesslethalprojectilelaunchers:4
▪
10directimpactspongeCSrounds
▪
10directimpactspongeOCrounds
●
40mmprojectileusage: Zero(0)timesthroughouttheyear. ●
Annualcost: Noassociatedcostswiththisitemin2023.
●
Remington870lesslethal(“beanbag”)shotguns:22●
Lesslethalshotgunusage: 1timein2023.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport ○ Thelesslethalshotgunwasdeployedin an attemptto takeanon-compliantsuspectintocustody. ● Annualcost: Noassociatedcostswiththisitemin2023.

IntenttoAcquireAdditional “MilitaryEquipment”
TheOxnardPoliceDepartmentintendstomaintainsufficientstockofspecificequipmentto maintainstandardsandoperationalreadiness. ThePoliceDepartmentroutinelyordersreplacementstockto maintainthelevelsof equipmentenumeratedin the“MilitaryEquipmentInventory.” Thesoughtitemsshownabovearethosethatareanticipatedatthetimeofthisreport.Shouldadditionalitemsneedtobeacquired,theywillbebroughtbeforetheOxnardCityCouncilataregularlyscheduledmeetingforapprovalconsideration.

TheOxnardPoliceDepartmentintendsto seekapprovalfor, acquire,andusethefollowingitemsin2024:

ThePoliceDepartmentintendstoacquireaTranscendRoboticsVantageRobot,whichqualifiesasa“remotelypilotedgroundvehicle.”Thisdeviceisusedtoenterstructuresto locateviolent,oftenarmed,subjectswantedforviolentcrimes. Thisequipmentprovidesasaferoptionforofficerstogetaviewintoabuildingorstructurethroughtherobot’s camerasystem,anddecreasesthelikelihoodofalethalforceencounter. Therobot’s two-waycommunicationssystemallowsofficerstode-escalate,communicate,andnegotiatecomplianceor surrender. Thisrobothastheabilityto safelydeployOleoresinCapsicum(OC)and2-chlorobenzalmalononitrile(CS)gasremotely.Thistypeofgasisusedtobringsuspectsoutofhiding,andincreasesthelikelihoodthattheywillcomply. ThoughthisitemfallsundertheGovernmentCode'sdefinitionof "militaryequipment,"it isessentialtonotethatit hasnoweapons,noarmor, andnomaterialsfurnishedbythemilitary. Thetotalcosttopurchasethisrobotis$62,818,andwillbepaidforwithSupplementalLawEnforcementServicesFund(SLESF). TherewouldbenoimpactontheCity’sGeneralFund.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport ThePoliceDepartmentintendsto acquirenineteen(19)additional40mmprojectilelaunchers. Theselesslethaltoolsallowofficerstoengageviolent,potentiallyarmedsuspectsfroma safedistance,allowingofficerstoattemptde-escalationtechniques. Thesetypesofless-lethalprojectilesoftenpreventofficersfromusinglethalforce.Theadditionof theseitemsis intendedto increasetheavailabilityof thisoptionwhenneeded.Thetotalcosttopurchasethese40MMlaunchersisapproximately$51,240.five(5)ofthelauncherswillbepaidusingAssetForfeitureFunds(AFF),whichwillbeapproximately$19,000,andthe remainingfourteenlauncherswill be paidusingSupplementalLawEnforcementServicesFund(SLESF)whichwillbeapproximately$32,240. TherewouldbenoimpactontheCity’sGeneralFund.

ThePoliceDepartmentintendstoreplace/acquiretwenty-two(22).223caliberriflesforthedepartment’sSWATteam. TheriflescurrentlyassignedtotheSWATteamareovertwentyyearsold,significantlyexceedingtheirexpectedlifespanoffivetosevenyearsunderSWAT teamconditions,renderingthemoverdueforreplacement. TheSWATteamneedsriflesforincreasedfirepowerandaccuracyin situationsthatrequiretheabilitytoengagetargetsatlongerdistances,penetratebarriers,andeffectivelyaddressthreats,whileminimizingrisktoofficersandmembersofthepublic. Theseriflesalsoprovidea tacticaladvantageinaddressinghigh-riskscenariossuchasactiveshootersituationsordealingwithheavilyarmedsuspects,allowingSWAT teamstomaintaincontrolandresponddecisivelyto potentialthreats. Thetotalcosttopurchasetheseriflesis$57,920andwillbepaidusingJusticeAdministrationGrantfunds. TherewouldbenoimpactontheGeneralFund.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport ThePoliceDepartment’s 40mminventoryhasbecomedepletedoverthelastyeardueto expiredroundsanduseduringpreviousyeardeployments.Addingnew40mmprojectilelaunchersalsoincreasestheneedfortrainingandliverounds. Toreplenishtheinventory, thePoliceDepartmentneedstopurchasefivehundred(500)exactimpactspongerounds,twenty(20)directimpactspongeroundswithOCgas,twenty(20)directimpactroundswithCSgas,andtwenty(20)directimpactspongerounds(greenmarking). Thecosttopurchasetheseroundsis$14,799.44,whichtheGeneralFundwouldcover. ThePoliceDepartmentmustalsopurchaseeight(8)spongeroundtrainingkits. Thecosttopurchasethesetrainingroundsis$11,432.80,whichwillbepaidusingtheGeneralFund.

Oversight
GovernmentCodesection7070(d)(6) requiresa declarationof the“mechanismstoensurecompliancewiththemilitaryequipmentusepolicy, includingwhichindependentpersonsorentitieshaveoversightauthority, and,ifapplicable,whatlegallyenforceablesanctionsareputinplaceforviolationsofthepolicy.” TheattachedMilitaryEquipmentInventoryportionfromtheOxnardPoliceDepartmentPolicyManualsection708citesrequirementstooperateitemslistedintheinventory.Additionally, it citeslegalandproceduralrulesgoverningtheiruse.TheserulesspanfromPoliceDepartmentpolicytotheOxnardCityCode,totheadherencetostateandfederalregulations.BothsupervisionandmanagementhaveafundamentalobligationtoensurethatOxnardPoliceDepartmentpersonnelensurecompliance.TheChiefofPoliceisresponsibletoensurethatsupervisionandmanagementarediligentlyworkingtopromoteandensurecompliance.

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OxnardPoliceDepartment2023Annual MilitaryEquipmentReport TheOxnardCityCouncil,thegoverningbodyfortheOxnardPoliceDepartmentandCityof Oxnard,hasnotcalledforanymilitaryequipmentitemsto requireadditionaloversight.

Transparency
GovernmentCodesection7071(b)requiresanyproposedorfinalmilitaryequipmentusepolicyshallbemadepubliclyavailableontheinternetwebsiteoftherelevantLEAforaslongasthemilitaryequipmentisavailableforuse.

Thisreportis availableto thepublicontheOxnardPoliceDepartment'swebsite,athttps://sites.google.com/oxnardpd.org/ab-481/ab-481.

Attachments
CityofOxnardOrdinance3014(Ordinance),● CodifiedinOxnardCityCodeSection2-112 OxnardPoliceDepartment’sPolicyManualsection708(“MilitaryEquipment”)● IncludesInventoryofMilitaryEquipment(section708.9) Page16of16
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SEC. 2-212. MILITARY EQUIPMENT POLICY.
(A) The city council hereby adopts Oxnard police department Policy Manual Section 708 (the “policy”) which shall govern the use of military equipment by the Oxnard police department. The policy may be amended by the police chief or his/her designee, subject to city council approval.
(B) The policy shall be made publicly available on the Oxnard police department’s website for as long as the military equipment is available for use or as otherwise ordained by the city council. (C) The Oxnard police department shall submit an annual military equipment report to the city council containing the information required by Cal. Gov't Code, Section 7072 and the city council shall thereafter determine whether each type of military equipment identified therein complied with the standards for approval set forth in Cal. Gov't Code, Section 7071(d). (D) The city council shall on an annual basis and at a regular meeting thereof review this section and vote on whether to renew it pursuant to Cal. Gov't Code, Section 7071(e)(2). At such time, the policy shall be presented to the city council as an attachment to the annual report.
(E) The definitions set forth in Cal. Gov't Code, Section 7070 shall apply to this section of the city code. Any provision of state law referred to herein shall mean and include any amended or successor provision thereof. (Ord. No. 3014)
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Military Equipment
708.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
708.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department, in this case the Oxnard City Council.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
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708.2 POLICY
It is the policy of the Oxnard Police Department that members of this Department comply with the provisions of Government Code § 7071 with respect to military equipment. 708.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of the Department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying Department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Oxnard Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the Department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the Department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
708.4 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or his/her authorized designee shall ensure the proposed military equipment policy is submitted to the governing body, and is available on the Department website at least (30) days prior to any public hearing concerning the military equipment at issue (Government Code § 7071).

The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
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(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this Department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 708.5 COORDINATION WITH OTHER JURISDICTIONS
This policy recognizes the need for agencies to provide assistance to each other, whether in ongoing combined or regional operations, occasional planned operations, or in exigent circumstances. Where applicable to the provisions of Government Code § 7070 through § 7075, such assisting agencies must comply with their respective military equipment use policies when rendering assistance.
708.6 EXTRAORDINARY CIRCUMSTANCES
This policy also recognizes that there may be very limited or extreme instances where incidents of extraordinary nature could demand the need for incident commanders to authorize Department personnel to use equipment not specified in this policy. This decision must be influenced by the totality of the circumstances, including the due regard for the public's safety, officer safety, respecting civil rights, seriousness of the situation, and other information available at that time.

Should such extreme instances occur that call for members of this Department to use equipment not specified in this policy, the incident commander shall, if practical, notify the Chief of Police via the chain of command prior to deploying such equipment. Should such circumstances occur, the Chief of Police or his/her designee, shall notify the City Council as soon as practical, and indicate any such uses in the required annual report.
708.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or his/her authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(a) A summary of how the military equipment was used and the purpose of its use. (b) A summary of any complaints or concerns received concerning the military equipment. 454
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(c) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (d) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (e) The quantity possessed for each type of military equipment. (f) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

The Chief of Police or his/her authorized designee shall also make each annual military equipment report publicly available on the Department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in Department inventory. 708.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
708.9 MILITARY EQUIPMENT INVENTORY
The Department's inventory of "military equipment" is attached to this policy, and shall be updated annually. This inventory may include equipment the Oxnard Police Department does not currently possess but intends to acquire.

See attachment: 2023 Military Equipment (Policy Manual 708.9).pdf 708.10 COMPLAINT PROCESS AND QUESTIONS
Community members may submit complaints or questions about the use of military equipment by completing a citizen complaint and inquiry form. All citizen complaints will be reviewed in a timely manner in accordance with Oxnard Police Department Policy 1020, which provides guidelines for reporting, investigating, and disposition of complaints. Use of military equipment questions will be forwarded to Professional Standards for review and follow-up. 455
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2023 Military Equipment (Policy Manual 708.9).pdf
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Government Code Section 7070(c)(1): Unmanned, remotely piloted, powered aerial or ground vehicles.

Equipment Name: Unmanned Aircraft Systems (UAS/Drones) – CA Govt. Code §7070(c)(1) Make/Model: DJI Matrice 300 RTK
Quantity: 1
Lifespan: 200-300 flight hours
Equipment Capabilities: Remotely piloted aerial vehicles capable of providing real -time and recorded video images captured from aerial positions, including images enhanced by forward-looking Infrared (FLIR) and optical zoom lenses.

Manufacturer Product Description: “The all-new DJI Matrice 300 RTK Commercial Drone System has created a new standard for the commercial drone industry. With inspiration from modern aviation systems, the DJI Matrice 300 RTK offers up to 55 minutes of fligh t time. The advanced flight control system, 6 Directional Sensing and Positioning systems, AI spot-checking, Smart Track, PinPoint, Location Sharing, and an all-new Primary Flight Display make the Matrice 300 RTK one of the most powerful and capable industrial platforms on the market.”
Purpose/Authorized Uses: UAS/Drones may be utilized to enhance the Department’s mission of protecting lives and property when other means and resources are unavailable or are less effective. Uses may include but are not limited to: search and rescue; suspect apprehension; crime scene documentation; tactical operations; scene security; hazard monitoring, identification, and mitigation; response to emergency calls; crisis communications
Fiscal Impacts: $32,000 initial equipment purchase. The ongoing costs for software licensing and batteries will vary.

Legal/Procedural Rules Governing Use: Any use of a UAS will be in strict accordance with constitutional and privacy rights and Federal Aviation Administration (FAA) regulations. The use of the UAS potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of any location wher e a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas with a reasonable expectation of privacy. Reasonable precautions can include, for example, deactivating or turning imaging devices away from such areas or persons during UAS operations. Use is subject to Oxnard Police Department Policy Manual section 610.

Training Required: Personnel must possess a valid Federal Aviation Administration Part 107 certificate, complete a Department training course, and must continuously train in both night and daytime flight environments (three takeoffs/landings within 90-day periods).

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Equipment Name: Unmanned Aircraft Systems (UAS/Drones) – CA Govt. Code §7070(c)(1) Make/Model: DJI Mavic Enterprise Advanced
Quantity Owned/Sought: 2 owned
Lifespan: 200-300 flight hours
Equipment Capabilities: Remotely piloted aerial vehicles capable of providing rea l-time and recorded video images captured from aerial positions, including images enhanced by forward-looking Infrared (FLIR) and optical zoom lenses.

Manufacturer Product Description: “The DJI Mavic II Enterprise features omnidirectional Vision Systems and Infrared Sensing Systems and comes with a fully stabilized 3-axis gimbal camera with an equivalent 24-48 mm 2x optical enterprise lens capable of shooting 4k videos and 12-megapixel photos that support up to 6x FHD zoom. DJI signature technologies, such as obstacle sensing and the advanced pilot assistance system, help you capture complex shots effortlessly. Additional features like the built -in AirSense make you aware of your surrounding airspace, and password protection helps you maintain secure acces s to your aircraft and protect your data. The Mavic II Enterprise also has attachable modular accessories like the M2E spotlight, M2E Beacon, and M2E Speaker that are purpose -built for various applications. The Mavic II Enterprise boasts a maximum flight s peed of 44.7 mph and a maximum flight time of 31 minutes.”
Purpose/Authorized Uses: UAS/Drones may be utilized to enhance the Department’s mission of protecting lives and property when other means and resources are unavailable or are less effective. Uses may include but are not limited to: search and rescue; suspect apprehension; crime scene documentation; tactical operations; scene security; hazard monitoring, identification, and mitigation; response to emergency calls; crisis communications
Fiscal Impacts: $7,500 purchase price per unit. The ongoing costs for software licensing and batteries will vary.

Legal/Procedural Rules Governing Use: Any use of a UAS will be in strict accordance with constitutional and privacy rights and Federal Aviation Administration (FAA) regulations. The use of the UAS potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas with a reaso nable expectation of privacy. Reasonable precautions can include, for example, deactivating or turning imaging devices away from such areas or persons during UAS operations. Use is subject to Oxnard Police Department Policy Manual section 610.

Training Required: Personnel must possess a valid Federal Aviation Administration Part 107 certificate, complete a Department training course, and must continuously train in both night and daytime flight environments (three takeoffs/landings within 90 day periods).

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Equipment Name: Unmanned Aircraft Systems (UAS/Drones) – CA Govt. Code §7070(c)(1) Make/Model: DJI M30
Quantity Owned/Sought: 1 owned
Lifespan: 200-300 flight hours
Equipment Capabilities: Remotely piloted aerial vehicles capable of providing real-time and recorded video images captured from aerial positions.

Manufacturer Product Description: “The M30 series integrates multiple high-performance sensors into a lightweight and portable body. Equipped with a remote controller designed for enterprise users and the newly upgraded Pilot 2 flight app, to improve the efficiency of drone operations.” Purpose/Authorized Uses: UAS/Drones may be utilized to enhance the Department’s mission of protecting lives and property when other means and resources are unavailable or are less effective. Uses may include but are not limited to: search and rescue; suspect apprehension; crime scene documentation; tactical operations; scene security; hazard monitoring, identification, and mitigation; response to emergency calls; crisis communications
Fiscal Impacts: $10,000 purchase price per unit. The ongoing costs for software licensing and batteries will vary.

Legal/Procedural Rules Governing Use: “Any use of a UAS will be in strict accordance with constitutional and privacy rights and Federal Aviation Administration (FAA) regulations. The use of the UAS potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas where there is a reasonable expectation of privacy. Reasonable precautions can include, for example, deactivating or turning imaging devices away from such areas or persons during UAS operations. Use is subject to Oxnard Police Department Policy Manual section 610.”
Training Required: Personnel must possess a valid Federal Aviation Administration Part 107 certificate, complete a Department training course, and must continuously train in both night and daytime flight environments (three takeoffs/landings within 90-day periods).

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Equipment Name: Unmanned Aircraft Systems (UAS/Drones) – CA Govt. Code §7070(c)(1) Make/Model: DJI Avata
Quantity: 2
Lifespan: 100-200 flight hours
Equipment Capabilities: Remotely piloted aerial vehicles capable of providing real -time and recorded video images captured from aerial positions. Compact aircraft ideal for indoor flight operations.

Manufacturer Product Description: “The DJI Avata is a state of the art FPV drone designed with extreme maneuverability in a compact airframe. With a flight time of approximately 18 mins on a single charge, the Avata gives pilots more durability than other compact UAVs. When paired with DJI Goggles 2, th e Avata is easier to operate in confined spaces.”
Purpose/Authorized Uses: UAS/Drones may be utilized to enhance the Department’s mission of protecting lives and property when other means and resources are unavailable or are less effective. Uses may inclu de but are not limited to: search and rescue; suspect apprehension; crime scene documentation; tactical operations; scene security; hazard monitoring, identification, and mitigation; response to emergency calls; crisis communications
Fiscal Impacts: $1,000 initial equipment purchase. The ongoing costs for software licensing and batteries will vary.

Legal/Procedural Rules Governing Use: Any use of a UAS will be in strict accordance with constitutional and privacy rights and Federal Aviation Administration (FAA) regulations. The use of the UAS potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of an y location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas with a reasonable expectation of privacy. Reasonable precautions can include, for example, deactivating or turning imaging devices away from such areas or persons during UAS operations. Use is subject to Oxnard Police Department Policy Manual section 610.

Training Required: Personnel must possess a valid Federal Aviation Administration Part 107 certificate, complete a Department training course, and must continuously train in both night and daytime flight environments (three takeoffs/landings within 90-day periods).

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Equipment Name: Unmanned, remotely operated ground vehicle – CA Govt. Code §7070(c)(1) Make/Model: RoboteX Avatar Robot
Quantity: 1
Lifespan: Approximately 10 years
Equipment Capabilities: The small remotely operated ground vehicle can be deployed quickly and is capable of providing live and recorded video images through several cameras, including a pan, tilt, zoom camera. The vehicle has night vision capability. A built-in speaker and microphone provide the ability to establish verbal communication.

Manufacturer Product Description: “The RoboteX Avatar robot enhances the capabilities of SWAT and tactical response teams by allowing them to quickly and safely inspect dangerous situations, there is no longer a need to send personnel in before you have had a chance to assess the situation.” Purpose/Authorized Uses: Provides officers the ability to visually inspect hazardous environments and make two-way communication from a safe distance without exposing officers to potential hazards. The robot can be used during high-risk tactical situations, such as barricaded subjects and hostage rescues.

The robot may also be used to inspect hazardous materials, possible explosive devices, and other hazardous situations.

Fiscal Impacts: $12,433.87 initial purchase
Legal/Procedural Rules Governing Use: Absent exigent circumstances, a search warrant must be obtained prior to the robot entering a private dwelling. All search and seizure laws shall be adhered to.

Use is subject to Oxnard Police Department Policy Manual section 610.5.1.

Training Required: Only SWAT Team personnel are authorized to control the robot after completing operator training.

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Government Code Section 7070(c)(3): High mobility multipurpose wheeled vehicles (HMMWV), called Humvees, two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles with a breaching or entry apparatus attached. However, unarmored all - terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision

Equipment Name: Armored rescue vehicle – CA Govt. Code §7070(c)(2) Make/Model: Lenco Bearcat
Quantity: 2
Lifespan: Approximately 20 years
Equipment Capabilities: Provides ballistic protection up to .50 caliber. Range: 100 miles.

Manufacturer Product Description: “The Lenco Bearcat is a four -wheeled, five -speed automatic transmission, diesel engine-powered vehicle with ballistic resistant glass and armor rated to .50 caliber.” Purpose/Authorized Uses: Provides ballistic protection to accommodate the safe transport, security, and rescue of agency personnel and members of the public in high-risk incidents. Used to support tactical operations.

Fiscal Impacts: $265,000 initial cost; $1,100 estimated average annual maintenance cost per unit.

Legal/Procedural Rules Governing Use: Drivers must possess a valid California Class C driver’s license.

Refer to Oxnard Police Department Policy Manual section 416.

Training Required: Annual briefing training.

Government Code Section 7070(c)(5): Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

Equipment Name: Large mobile command vehicles – CA Govt. Code §7070(c)(5) Make/Model: Mattman
Quantity: 1
Lifespan: 80k-100k miles
Equipment Capabilities: The vehicle is equipped with communications equipment, office equipment, workstations, dispatcher stations, and a small conference area.

Manufacturer Product Description: “Mattman”
Purpose/Authorized Uses: Provides incident managers the ability to coordinate and manage police resources during large-scale events or incidents.

Fiscal Impacts: $750,000
Legal/Procedural Rules Governing Use: Drivers must possess a valid California Class B driver’s license.

Training Required: Utilized by sworn personnel of the rank of Sergeant or higher. Does not require additional training.

Notes: These vehicles will be replaced and sold at auction during Fiscal Year 2024-25.

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Equipment Name: Large mobile command vehicle – CA Govt. Code §7070(c)(5) Make/Model: Emergency Vehicles Inc.

Quantity: 1
Lifespan: 80k-100k miles
Equipment Capabilities: The vehicle is equipped with communications equipment, office equipment, workstations, dispatcher stations, and a small conference area.

Manufacturer Product Description: “EVI custom Police Mobile Command Vehicle Posts can be custom designed and built for your specific departments’ needs. A custom Mobile Command Police Center can be dispatched to any situation to be utilized as meeting areas, radio command centers, WIFI hubs, communication capabilities, and much more. Some of the features incorporated into past EVI custom Mobile Command Vehicle builds include TV Satellites, antennas, slide outs to allow for more room, scene lights, outside compartments for storage, cabinets, generator, restrooms, awning, outside TV and workstations, light tower, portable lighting, easy roof access and storage, coffee and snack bars with sink, and much more.”
Purpose/Authorized Uses: Provides incident managers the ability to coordinate and manage police resources during large-scale events or incidents.

Fiscal Impacts: $750,000
Legal/Procedural Rules Governing Use: Drivers must possess a valid California Class B driver’s license.

Training Required: Utilized by sworn personnel of the rank of Sergeant or higher. Does not require additional training.

Notes: The Oxnard City Council approved this purchase on February 7, 2023. The vehicle is being built and scheduled to be delivered mid to late 2024.

Equipment Name: Mid-sized mobile command vehicles – CA Govt. Code §7070(c)(5) Make/Model: Mercedes Benz Sprinter Van
Quantity: 2
Lifespan: 80k-100k miles
Equipment Capabilities: The vehicle is equipped with communications equipment, office equipment, workstations, dispatcher stations, and a small conference area.

Manufacturer Product Description: “Sprinter. The van that goes the extra mile. It’s the van that hauls cargo, stows gear and raises standards. It’s the van that’s ready for anything, wherever your work or your lifestyle takes you. It’s the van that’s more than a van, because it’s also a Mercedes-Benz.” Purpose/Authorized Uses: Both vans have been outfitted with communications equipment, computers, lighting, power, workstations, and secure storage cabinets. These vehicles provide a remote platform from which the Traffic Unit and Unmanned Aerial Services Unit can conduct operations.

Fiscal Impacts: $126,000 purchase price for both vehicles, $30,000 - $40,000 to outfit each vehicle with the necessary equipment.

Legal/Procedural Rules Governing Use: Drivers must possess a valid California Class C driver’s license.

Training Required: Utilized by sworn personnel. Does not require additional training.

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Equipment Name: DUI enforcement command trailer – CA Govt. Code §7070(c)(5) Make/Model: Garrett Custom Trailers
Quantity: 1
Lifespan: Approximately 20 years
Equipment Capabilities: The vehicle is equipped with communications equipment, office equipment, workstations, lighting, and power.

Manufacturer Product Description: Garrett Custom Trailers 30’ box trailer Purpose/Authorized Uses: Utilized by the Traffic Unit during DUI/ drug enforcement operations and educational programs.

Fiscal Impacts: $124,286.39 purchase and outfitting.

Legal/Procedural Rules Governing Use: Drivers must possess a valid California Class C driver’s license.

Training Required: Drivers must attend training on hitching, driving, and backing the trailer.

Equipment Name: Small command vehicles – CA Govt. Code §7070(c)(5) Make/Model: Ford Explorers
Quantity: 8
Lifespan: 80k-100k miles
Equipment Capabilities: Ford Explorer chassis patrol vehicle, equipped with additional radio, mobile data computer, dry erase boards, and storage cabinets. The vehicle has a range of approximately 300 miles.

Manufacturer Product Description: “Mid-size modular forward command post designed to meet the most demanding operational needs of the mobile field commander.” Purpose/Authorized Uses: Provides incident supervisors/managers the ability to coordinate and manage police resources during incidents.

Fiscal Impacts: The purchase price of the vehicle is $38,000, and the cost to outfit the vehicle with equipment is $3,374.19.

Legal/Procedural Rules Governing Use: Drivers must possess a valid California Class C driver’s license.

Training Required: Utilized by sworn personnel of the rank of sergeant or higher. Does not require additional training.

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Government Code Section 7070(c)(7): Battering rams, slugs, and breaching apparatuses that are explosive in nature.

Equipment Name: Frangible breaching shotgun – CA Govt. Code §7070(c)(7) Make/Model: Royal Arms
Quantity: 2
Lifespan: Approximately 25 years
Equipment Capabilities: The modified 12 gauge Remington 870 shotgun is designed to fire a copper or clay compressed frangible (brittle, fragile) projectile through door locking mechanisms and hinges. After defeating a door's hardware, the projectile disintegrates, reducing the risk of potential injury to bystanders.

Manufacturer Product Description: “Royal Arms is the original inventor, as well as oldest manufacturer of: Breaching Stand-Off Device, 12 Gauge Breaching Shotgun, Copper & Clay Frangible Breaching Rounds.”
Purpose/Authorized Uses: SWAT officers can quickly, safely, and effectively breach doors and gates during high-risk search warrant services and hostage rescues.

Fiscal Impacts: Approximately $800 per unit initial purchase. The ongoing cost of ammunition varies.

Legal/Procedural Rules Governing Use: Absent exigent circumstances, a search warrant must be obtained prior to entering a private dwelling. All search and seizure laws shall be adhered to. Use is subject to Oxnard Police Department Policy Manual section 611 and the Oxnard Police Department SWAT Manual.

Training Required: SWAT Team personnel are authorized to use the breaching shotgun after receiving the required training and have demonstrated the ability to utilize the tool safely and competently. SWAT Team personnel must undergo annual recertification and qualification.

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Government Code Section 7070(c)(10): Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.

Equipment Name: Semi-Automatic Rifles and Ammunition (5.56mm/.223 caliber) – CA Govt. Code §7070(c)(10)
Make/Model: Colt
Quantity: 107
Lifespan: Approximately 15 years
Equipment Capabilities: Semi-automatic rifle that fires a 5.56mm projectile.

Manufacturer Product Description: “The Colt Enhanced Patrol Rifle (EPR) is the next evolution in the world's most dependable, thoroughly field-tested patrol rifle.” Purpose/Authorized Uses: Officers may deploy the patrol rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include but are not limited to:
● Situations where the officer reasonably anticipates an armed encounter. ● When an officer is faced with a situation that may require accurate and effective fire at long range.
● Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower. ● When an officer reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.
● When an officer reasonably believes a suspect may be wearing body armor. ● When authorized or requested by a supervisor.

Fiscal Impacts: The initial cost of equipment is approximately $1,100 per rifle. Rifle maintenance was approximately $1,200.

Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force and Firearms, including Oxnard Police Department Policy Manual sections: 300, 305, 310, 312, 314.7.3, 433.

Training Required: Officers must successfully complete a CA POST-certified 24-hour patrol rifle course as well as regular department firearms training and qualifications as required by law and policy.

467
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9

Equipment Name: Semi-Automatic Rifles and Ammunition (5.56mm/.223 caliber) – CA Govt. Code §7070(c)(10)
Make/Model: Sionics
Quantity: 51
Lifespan: Approximately 15 years
Equipment Capabilities: Semi-automatic rifle that fires a 5.56mm projectile.

Manufacturer Product Description: “The Sionics SAR-15 Lothar Walther German Stainless Steel Precision Barrel will give you unmatched accuracy as well as incredible accuracy at distance.” Purpose/Authorized Uses: Officers may deploy the patrol rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include but are not limited to:
● Situations where the officer reasonably anticipates an armed encounter.When an officer is faced with a situation that may require accurate and effective fire at long range. ● Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
● When an officer reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.
● When an officer reasonably believes a suspect may be wearing body armor. ● When authorized or requested by a supervisor.

Fiscal Impacts: The initial cost of equipment is approximately $1,100 per rifle. Rifle maintenance was approximately $1,200
Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force and Firearms, including Oxnard Police Department Policy Manual sections: 300, 305, 310, 312, 314.7.3, 433.

Training Required: Officers must successfully complete a CA POST-certified 24-hour patrol rifle course as well as regular department firearms training and qualifications as required by law and policy.

468
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9

Equipment Name: .308 caliber bolt-action Rifle and Ammunition – CA Govt. Code §7070(c)(10) Make/Model: Remington 700
Quantity: 5
Lifespan: Approximately 15 years
Equipment Capabilities: The Remington 700 Sniper Rifle fires a .308 caliber projectile at extended distances.

Manufacturer Product Description: “The Remington 700 is the number one bolt -action of all time, proudly made in the U.S.A. For over 50 years, more Model 700s have been sold than any other bolt- action rifle before or since. The legendary strength of its 3-rings-of-steel receiver paired with a hammer- forged barrel, combine to yield the most popular bolt-action rifle in history.” Purpose/Authorized Uses: This rifle is exclusively authorized for use by a sniper -trained SWAT officer and may be deployed in circumstances where the officer can articulate a reasonable expectation that the rifle may be necessary. Examples of some general guidelines for deploying the rifle may include but are not limited to:
● Situations where the officer reasonably anticipates an armed encounter. ● When the officer is faced with a situation that may require accurate and effective fire at long range.
● Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
● When an officer reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.
● When an officer reasonably believes a suspect may be wearing body armor. ● When authorized or requested by a supervisor.

Fiscal Impacts: $1,604.12 per rifle. .308 caliber rifle ammunition cost approximately $16,587.

Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force, including Oxnard Police Department Policy Manual sections 300, 305, 310, 312, 314.7.3, and the Oxnard Police Department SWAT Manual.

Training Required: In addition to patrol rifle an d standard SWAT Operator training, SWAT Snipers must successfully complete a CA POST -certified sniper course and regular SWAT Sniper training and qualifications as required by law and policy.

Notes: Now that the Department has 6 of the Accuracy International AT rifles the four (4) Remington .308 caliber rifles will be taken out of service and sold. One (1) rifle will be kept as a training/spare rifle.

469
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9

Equipment Name: .308 caliber bolt-action Rifle and Ammunition – CA Govt. Code §7070(c)(10) Make/Model: Accuracy International AT
Quantity: 6
Lifespan: Approximately 15 years
Equipment Capabilities: Accuracy International AT Law Enforcement fires a .308 caliber projectile at extended distances.

Manufacturer Product Description: “The Accuracy International AT rifle series integrates the proven Accuracy International flat-bottomed, precision machined action that is epoxy bonded and bolted to a chassis with the best features of the AW and AE models to set a new standard of expectation for precision tactical rifles. The AT is a configurable, mission -adaptable, long-range tactical rifle system offered in .308/7.62 NATO.”
Purpose/Authorized Uses: This rifle is authorized for use by a sniper -trained SWAT operator only and may be deployed in circumstances where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the rifle may include but are not limited to:
● Situations where the officer reasonably anticipates an armed encounter. ● When the officer is faced with a situation that may require accurate and effective fire at long range.
● Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
● When an officer reasonably believes tha t there may be a need to fire on a barricaded person or a person with a hostage.
● When an officer reasonably believes a suspect may be wearing body armor. ● When authorized or requested by a supervisor.

Fiscal Impacts: $6,651 per rifle. No other associated costs for these rifles, because they were purchased in 2023.

Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force, including sections 300, 305, 310, 312, 314.7.3, and the Oxnard Police Department SWAT Manual.

Training Required: In addition to patrol rifle and standard SWAT Operator training, SWAT Snipers must successfully complete a CA POST -certified sniper course and regular SWAT Sniper training and qualifications as required by law and policy.

Notes: These rifles are replacing the Remington 700 rifles in the Department’s inventory.

470
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9
Government Code Section 7070(c)(12): “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service - issued handheld pepper spray.

Equipment Name: “Flashbangs” – CA Govt. Code §7070(c)(12) Make/Model: Combined Systems Inc.

Quantity: 164
Lifespan: 5 years
Equipment: Produces 6-8 million candela of light and 175 decibels of sound Manufacturer Product Description: “The Mini Flash -Bang is the newest generation in the evolution of the Flash-Bang. Our Model 7290M Flash-Bang exhibits all of the same attributes of its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces, the new 7290M is approximately 30% lighter than the 7290 but still has the same 175 decibel output of the 7290 and produces 6 -8 million candela of light.” “The 7290-2 is a non- bursting, non-fragmenting multi-bang device that produces a thunderous bang with an intense brigh t light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry, or other high-risk arrest situations.” Purpose/Authorized Uses: The light sound diversionary device (“flashbang”) is a less-lethal device used during high-risk search warrants, arrests of armed and violent suspects, and hostage rescues. An intense bright light and loud noise are created, temporarily overwhelming a suspect's senses which may potentially prevent a suspect from harming officers.

Fiscal Impacts: $47.06 per unit (Model 7290M), $81.94 per unit (Model 7290-2) Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual section 307. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel, K9 handlers, and former SWAT personnel assigned as patrol sergeants are authorized to carry light sound diversionary devices. All authorized personnel must attend a user's course taught by a POST -certified instructor and complete a qualification. Personnel must demonstrate proficiency and qualify annually.

471
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9

Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Combined Systems Inc.

Quantity: 34
Lifespan: 5 years
Equipment Capabilities: A “ less lethal” tool used to compel violent/armed and barricaded suspects to exit structures when the circumstances are too hazardous for officers to enter. It may also be used to compel large, violent, and riotous crowds to disperse from an outdoor area. Verbal w arnings should proceed with its use when feasible. Designed as a chemical agent dispersal tool and not an impact weapon.

Manufacturer Product Description: “CTS 5230B - CS baffled canister grenade, pyrotechnic, low flame potential grenade designed for indo or use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.”
Purpose/Authorized Uses: Less lethal tool used to compel violent/armed and barricaded suspects from vehicles and structures when the circumstances are too hazardous for officers to enter. It may also be used to disperse large, violent, and riotous crowds. Verbal warnings should precede its use when feasible.

Fiscal Impacts: $38.00 per unit. $2,173 cost in 2023 for all gas replenishments.

Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300, 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel who are responsible for f ormulating chemical agent deployment plans must attend California POST -certified chemical agent school and recertify every three (3) years.

SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

472
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9

Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 10
Lifespan: 5 years
Equipment Capabilities: 40mm short-range CS chemical agent round with an effective range of 75 yards.

Manufacturer Product Description: “Defense Technology 6322 40mm short-range CS chemical agent round is designed to deliver one dual -ported chemical canister from a 40mm launcher 75 yards to the intended target zone.”
Purpose/Authorized Uses: Less lethal chemical agent designed to compel large, violent, and riotous crowds to disperse from an outdoor area. Verbal warnings should proceed with its use when feasible.

Designed as a chemical agent dispersal tool and not an impact weapon.

Fiscal Impacts: $34.55 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300 and 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 10
Lifespan: 5 years
Equipment Capabilities: 40mm short-range OC chemical agent round with an effective range of 75 yards.

Manufacturer Product Description: “Defense Technology 6320 40mm short-range OC chemical agent round is designed to deliver one dual -ported chemical canister from a 40mm launcher 75 yards to the intended target zone.”
Purpose/Authorized Uses: Less lethal chemical agent designed to compel large, violent, and riotous crowds to disperse from an outdoor area. Verbal warnings should proceed with its use when feasible.

Designed as a chemical agent dispersal tool and not an impact weapon.

Fiscal Impacts: $34.55 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300 and 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

473
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9
Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 12
Lifespan: 5 years
Equipment Capabilities: Capable of delivering CS chemical agents quickly over a large area.

Manufacturer Product Description: “Defense Technology Triple Chaser CS consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart, allowing increased area coverage in a short period of time.”
Purpose/Authorized Uses: Less lethal chemical agent designed to compel large, violent, and riotous crowds to disperse from an outdoor area. Verbal warnings should precede its use when feasible. Designed as a chemical agent dispersal tool and not an impact weapon.

Fiscal Impacts: $41.55 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300, 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 16
Lifespan: 5 years
Equipment Capabilities: Capable of quickly delivering a large volume of CS chemical agent to disperse violent crowds.

Manufacturer Product Description: “Defense Technology Spede-Heat CS is designed specifically for outdoor use in crowd control situations. The Riot Control Grenade is a high volume continuous burn canister that expels its payload in approximately 20 - 40 seconds.” Purpose/Authorized Uses: Less lethal chemical agent designed to compel large, violent, and riotous crowds to disperse from an outdoor area. Verbal warnings should proceed with its use when feasible.

Designed as a chemical agent dispersal tool and not an impact weapon.

Fiscal Impacts: $27.05 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300 and 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

474
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9

Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 18
Lifespan: 5 years
Equipment Capabilities: Non-burning munition used to introduce CS chemical agents through doors and windows.

Manufacturer Product Description: “Defense Technology CS ferret is non-burning and designed to penetrate barriers. Primarily used to dislodge barricaded subjects, it can also be used for area denial.” Purpose/Authorized Uses: Less lethal tool used to compel violent/armed and barricaded suspects to exit from structures when the circumstances are too hazardous for officers to enter. Verbal warnings should proceed with its use when feasible.

Fiscal Impacts: $20.55 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300 and 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 10
Lifespan: 5 years
Manufacturer Product Description: “Defense Technology OC vapor Aerosol Grenade is for law enforcement and corrections use to deliver a high concentration of Oleoresin Capsicum (OC) in a powerful mist.”
Purpose/Authorized Uses: Less lethal tool used to compel violent/armed and barricaded suspects to exit from structures and vehicles when the circumstances are too hazardous for officers to enter. Verbal warnings should precede its use when feasible.

Fiscal Impacts: $44.45 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300 and 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

475
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9
Equipment Name: Chemical Agents – CA Govt. Code §7070(c)(12) Make/Model: Defense Technology
Quantity: 12
Lifespan: 5 years
Equipment Capabilities: Capable of delivering OC and CS chemical agent in vapor form.

Manufacturer Product Description: “Defense Technology OC/CS vapor is a unique grenade delivering an invisible vapor and rendering an intense respiratory effect. Provides best results when used indoors and requires no personal decontamination.”
Purpose/Authorized Uses: Less lethal tool used to compel violent/armed and barricaded suspects from structures when the circumstances are too hazardous for officers to enter. Verbal warnings should precede its use when feasible.

Fiscal Impacts: $53.10 per unit
Legal/Procedural Rules Governing Use: Use is subject to Oxnard Police Department Policy Manual sections 300 and 308.6. Operational use is under the purview of the SWAT Commander or Watch Commander.

Training Required: SWAT personnel responsible for formulating chemical agent plans must attend California POST-certified chemical agent school and must recertify every three (3) years. SWAT officers may deploy chemical agents during high-risk SWAT operations after attending a chemical agents course taught by a POST-certified instructor. Officers must qualify annually.

Equipment Name: Pepperball launcher/pepper balls – CA Govt. Code §7070(c)(12) Make/Model: Pepperball
Quantity: 13
Lifespan: Approximately 15 years
Manufacturer Product Description: “The need for non -lethal options in daily patrol, crowd management, corrections, and other situations has never been greater. PepperBall, as the leading non - lethal option, allows officers to maintain distance from crowds and individual assailants. This reduces risk while enhancing the capability of officers to limit or control escalation, to repel or temporarily incapacitate threats, and to keep themselves and the public safe while performing their duties.” Purpose/Authorized Uses: To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the device's intended use should precede its application. The pepperball is a “less lethal” device that affords officers with force options that are intended to mitigate the likelihood of having to use lethal force.

Fiscal Impacts: $499 per launcher. No associated costs with this item in 2023.

Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force including sections 300 and 308.

Training Required: Initial orientation course, including qualifications, are provided by Department members who have attended a POST-certified instructor’s course; annual recertification, including qualifications are required by all operators.

476
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9
Government Code Section 7070(c)(14): The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons.

Equipment Name: 40mm Less Lethal Launchers and Kinetic Energy Munitions – CA Govt. Code §7070(c)(14)
Make/Model: Penn Arms
Quantity: 4
Lifespan: Approximately 15 years
Equipment Capabilities: The 40mm Less Lethal Launcher is capable of firing 40mm Kinetic Energy Munitions, as well as chemical agents.

Manufacturer Product Description: “Penn Arms 40MM launchers are manufactured using 4140 hardened steel, 6061-T6 mil-spec anodized aluminum, and DuPont super tough glass -filled nylon. These launchers are lightweight, versatile, and used worldwide by police and corrections officers.” Purpose/Authorized Uses: To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the device's intended use should precede its application. The 40mm Less Lethal Launchers and Kinetic Energy Munitions are intended for use as a “less lethal” use of force option, which serves as an additional option to mitigate the possibility of using lethal force.

Fiscal Impacts: $3,400 initial purchase per launcher, $2,500 initial purchase of 40mm projectiles.

No associated costs with this item in 2023.

Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force, primarily Oxnard Police Department Policy Manual sections 300 and 308.

Training Required: Initial orientation course, i ncluding qualifications, are provided by Department members who have attended a POST-certified instructor’s course; annual recertification, including qualifications by demonstrated use in a training environment, are required of all operators.

477
Attachment
Oxnard Police Department Policy Manual 708.9
Inventory of Military Equipment

Oxnard Police Department Policy Manual Section 708.9
Equipment Name: Less Lethal Shotgun – CA Govt. Code §7070(c)(14) Make/Model: Remington
Quantity: 22
Lifespan: Approximately 20 years
Equipment Capabilities: The Model 2581 Super-sock is a less-lethal impact munition fired from a standard 12 gauge shotgun. The super-sock projectile is a fabric bag filled with lead shot. The effective range is 75 feet.

Manufacturer Product Description: “The Super -Sock is first in its class, providing the point control accuracy and consistent energy to momentarily incapacitate violent, non- compliant subjects. The effective range is 75 feet.”
Purpose/Authorized Uses: To compel an individual to cease his/her actions when such munitions present a reasonable option. A verbal warning of the device's intended use should precede its application. The pepperball is a “less lethal” device that affords officers with force option s that are intended to mitigate the likelihood of having to use lethal force.

Fiscal Impacts: The 12 gauge shotguns used to deploy the Super-Sock impact munition are re-purposed Remington 870 shotguns taken from the Oxnard Police Department inventory. Approximately $35.50 for a box of 5 Super-Sock projectiles. No associated costs with this item in 2023.

Legal/Procedural Rules Governing Use: All applicable State, Federal, and Local laws governing police use of force. Various Oxnard Police Department Policies on Use of Force including sections 300 and 308.

Training Required: Initial orientation course, including qualifications, are provided by Department members who have attended a POST-certified instructor’s course; annual recertification, including qualifications, are required by all operators.

478
Oxnard City Council Meeting
July 2, 2024
Oxnard Police Department
“Military Equipment” Use Report
for
Calendar Year 2023
Commander Dan Whitmer
479
That the City Council:

1. Receive the Police Department's annual report concerning its inventory and use of military equipment, in accordance with Government Code sections 7070-7075.

2. Approve the renewal of City of Oxnard Ordinance 3014, which is codified in Oxnard City Code Section 2-112 as the City’s “Military Equipment Policy” as required by Government Code section 7071 (e)(1).

3. Approve the continuing authorization for the funding, acquisition, and use of military equipment by the Oxnard Police Department’s military equipment inventory as required by Government Code section 7071 (e)(2).

4. Approve the acquisition and use of the following military equipment items:
a. One (1) Transcend tactical Robotic device
b. Nineteen (19) 40mm projectile launchers
c. Twenty-two (22) .223 caliber rifles
d. Five hundred and sixty (560) 40mm projectile rounds and eight (8) sponge round training kits
RECOMMENDATION 2
480
Assembly Bill 481
• Signed by Governor Newsom September 30, 2021
• Concern over the militarization of police departments in US • Concern over the use of surplus military equipment
• Improved transparency
• Defines certain equipment as “military equipment”
• Codified in Government Code sections 7070- 7075
• Went into effect on January 1, 2022
• Law enforcement agencies must meet certain
requirements to use equipment defined in these codes
BACKGROUND 3
481
BACKGROUND 4
● Defense Logistics Agency's 1033 Program
● Formerly Defense Reutilization Marketing Office Program ("DRMO")

OXNARD PD CEASED PROCURING EQUIPMENT

FROM THESE PROGRAMS
482
• Although defined as “military equipment” it is not
necessarily manufactured, intended for use, or used by the military
• Most of the equipment defined in these codes has been utilized by the Oxnard Police Department for decades
• Many of the items are not weapons
• The majority of the weapons are “less lethal” weapons

EQUIPMENT DEFINED AS MILITARY

EQUIPMENT
5 483
Examples of “Military Equipment”under AB 481
• Command vehicles
• Armored vehicles
• Unmanned aerial vehicles (“drones”)
• Less lethal shotguns
• 40mm less lethal impact weapons
• Chemical agents
• Patrol rifles
**This is not a comprehensive list
EXAMPLES 6
484
• Law enforcement agencies must obtain approval from
their applicable governing body (City Council) via the
adoption of a “military equipment” use policy by
ordinance before the law enforcement agency may fund,
acquire, or use such equipment.
• A public meeting to discuss this policy was held 30 days prior to City Council approving
• On June 7, 2022, the Oxnard City Council adopted the
Oxnard Police Department’s Military Use Policy (Policy
Section 708)
AB 481 REQUIREMENTS 7
485
• Policy went into effect July 6, 2022
• Policy must be available to the public
• https://sites.google.com/oxnardpd.org/department-policy- manual/department-policy-manual
• https://sites.google.com/oxnardpd.org/ab-481/ab-481
• Policy includes the department’s military equipment
inventory
• City Council must vote annually to re-approve this policy • Department must provide an annual “military equipment use report”
• Department must have a community meeting
AB 481 REQUIREMENTS 8
486
WWW.OXNARDPD.ORG 9
• https://sites.google.com/oxnardpd.org/department-policy-manual/department-policy-manual • https://sites.google.com/oxnardpd.org/ab-481/ab-481
AB 481 Materials
here
487
Military Equipment Report must contain the following
information:
• A summary of how the military equipment was used and
the purpose of its use.
• A summary of any complaints or concerns received
concerning the military equipment.
• The results of any internal audits, information about violations of the military equipment use policy, and any actions taken in response.

MILITARY EQUIPMENT REPORT 10
488
• The total annual cost for each type of military equipment. • The quantity possessed for each type of military
equipment.
• If the law enforcement agency intends to acquire additional military equipment in the next year, and the quantity
sought for each type of military equipment.

The report covers calendar year 2023

MILITARY EQUIPMENT USE REPORT

CONTINUED
11 489
The following slides include highlights from the
Oxnard Police Department’s 2023 Military Equipment
Use Report that was provided to City Council.

There were no complaints related to the military
equipment in 2023, nor were there any violations of
policy related to the equipment.
(Due to the amount of data included in the report, please hold your questions to the end of the presentation)
2023 MILITARY EQUIPMENT USE REPORT 12
490
Unmanned, remotely piloted, powered aerial or ground vehicles • OXPD has used unmanned aerial vehicles (UAV) since
2019
• These vehicles provide a wide range of defined missions • All OXPD drone pilots are FAA certified
• UAV missions are documented in a “flight log”
• No complaints were received regarding the use of UAVS • UAVs were used one hundred and fifteen (115) times
during this reporting period
CALIFORNIA GOVERNMENT CODE 7070(C)(1) 13
491
CALIFORNIA GOVERNMENT CODE 7070(C)(1) 14
Breakdown of UAS Deployments in 2023
Field Operation Support (e.g., area searches) 25
Tactical Assists 42
Crime Scene Documentation 20
Special Event Support 12
Area Mapping 9
Training 7
Total 115
492
Unmanned, ground, robotic vehicles
• Small, battery operated, remote controlled vehicles
• SWAT Team possesses one (1) of these vehicles
• Has the ability to locate and communicate with suspects • A search warrant must be obtained prior to using this vehicle to enter a residence
• Training to operate is provided by SWAT officers
• No ongoing costs associated with this item
• This equipment was not used during this reporting period CALIFORNIA GOVERNMENT CODE 7070(C)(1) 15
493
CALIFORNIA GOVERNMENT CODE 7070(C)(3) 16
Mine-resistant ambush-protected vehicles or armored personnel carriers
● The Department owns two (2) Lenco Bearcat armored vehicles ● Provides ballistic protection during high-risk incidents ● No weapons
● Gives officers the ability to safely utilize de-escalation techniques
● Also used by Fire Department Tactical Emergency Medical Services (TEMS)
● Only ongoing costs are preventative maintenance and fuel (approximately $1,100 per unit per year)
● Used on forty-one (41) occasions in 2023
○ 9 responses to armed subjects and assist patrol officers ○ 22 for search warrants
○ 10 for community engagement events
● No complaints were received during this reporting period 494
CALIFORNIA GOVERNMENT CODE 7070(C)(3) 17
Oxnard Police Department Armored Rescue Vehicle (Lenco Bearcat) 495
CALIFORNIA GOVERNMENT CODE 7070(C)(3) 18
Oxnard Police Department Armored Rescue Vehicle (Lenco Bearcat) 496
CALIFORNIA GOVERNMENT CODE 7070(C)(4) 19
Tracked armored vehicles that provide ballistic protection and utilize a tracked system
● The Police Department does not own this type of vehicle ● The Ventura County Sheriff’s Department owns a Rook
● Small ballistic Caterpillar
● Mitigates risks to SWAT officers while performing
dangerous tasks during high-risk incidents
● The Sheriff’s Department makes this equipment available to the Department
● Used on one (1) occasion this reporting period
● There are no costs to the City associated with its use ● No complaints were received
497
CALIFORNIA GOVERNMENT CODE 7070(C)(4) 20
“The Rook”
498
CALIFORNIA GOVERNMENT CODE 7070(C)(5) 21
Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units ● The Department currently owns thirteen (13)
○ Two (2) large command vehicle
○ Two (2) Sprinter vans
○ One (1) DUI enforcement trailer
○ Eight (8) Ford Explorer sport utility vehicles
● The Ford Explorers are used on a daily basis
● The large command vehicle was used ten (10) times in 2023 ● The UAS van was used eighty five (85) times
● The traffic van was used twelve (12) times
● After the initial purchase cost, the only ongoing costs are fuel and maintenance (approximately $63,400 for fuel and
maintenance)
● No complaints regarding the use of these vehicles were received
499
CALIFORNIA GOVERNMENT CODE 7070(C)(5) 22
500
Battering rams, slugs, and breaching apparatuses that are explosive in nature
• The SWAT Team has two (2) shotguns designed for
breaching
• The shotguns were purchased approximately 20 years ago • All required training is provided by Department personnel • There are no ongoing costs associated with this equipment • These items were not used during this reporting period outside of training
CALIFORNIA GOVERNMENT CODE 7070(C)(7) 23
501
Specialized firearms and ammunition of less than .50
caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code
.223 caliber rifles
• Only officers who have received POST training may carry .223 caliber rifles
• Officers must qualify and re-qualify on an annual basis • Rifles are only used when circumstances indicate the use of lethal force may become necessary
• The Department spent approximately $17,787.50 on
ammunition and maintenance
CALIFORNIA GOVERNMENT CODE 7070(C)(10) 24
502
• Ongoing training and maintenance is provided by
Department Range Safety Unit personnel
• These weapons were not fired at anyone during this
reporting period
• California POST defines the intentional pointing of a firearm at a member of the public as a “reportable use of force”
• All reportable uses of force are investigated and tracked by the Professional Standards Unit
• During this reporting period rifles were “pointed” on sixty- five (65) occasions
• The Department did not receive any complaints regarding the use of rifles
CALIFORNIA GOVERNMENT CODE 7070(C)(10) 25
503
Precision .308 caliber rifles
• In addition to .223 caliber rifles, the Police Department also possesses eleven (11) .308 caliber precision rifles,
• Four (4) will be sold during 2024
• Used only by a few select officers assigned to the SWAT Team
• Officers assigned these rifles receive extensive training and qualify on a monthly basis
• These rifles were not fired other than during training • The Police Department did not receive any complaints
CALIFORNIA GOVERNMENT CODE 7070(C)(10) 26
504
CALIFORNIA GOVERNMENT CODE 7070(C)(12) 27
“Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray
“Flashbangs” (Light Sound Diversionary Devices)
● The SWAT Team uses them
● Provides officers with a method to distract violent suspects ● Significantly reduces risks to officers when dealing with violent suspects
● Officers authorized to use these devices must attend a POST-certified course provided by Department personnel
● These devices were used sixteen (16) times in 2023
○ Gained suspect’s compliance on 13 of the 16 occasions, eliminating the necessity for any additional force tactics ● The Department did not receive any complaints
505
CALIFORNIA GOVERNMENT CODE 7070(C)(12) 28
“Flashbangs” (Light Sound Diversionary Devices)
506
Tear gas
• The SWAT Team has chemical agents, more commonly
known as “tear gas”
• Less lethal tool used to safely compel barricaded
suspects out of vehicles or structures
• Used during high-risk incidents to mitigate risks to
officers
• Training is provided by POST-certified SWAT personnel • Used three (3) times during this reporting period
• The Department did not receive any complaints
CALIFORNIA GOVERNMENT CODE 7070(C)(12) 29
507
CALIFORNIA GOVERNMENT CODE 7070(C)(12) 30
CS Gas (not to scale)
508
Pepperball
• Less lethal weapon that deploys small spheres filled with a chemical irritant
• Used to overcome a resistant violent suspect without the need to use lethal force
• Officers are trained by POST-certified personnel
• The pepperball was used four (4) times during this
reporting period
• The Department did not receive any complaints
CALIFORNIA GOVERNMENT CODE 7070(C)(12) 31
509
CALIFORNIA GOVERNMENT CODE 7070(C)(12) 32
Pepperball launcher and munitions (not to scale)
510
40mm projectile launchers, “bean bag”, rubber bullet, and specialty impact munition weapons
Bean bag shotgun/ 40mm extended range impact weapon
• The Police Department uses 12 gauge less lethal shotguns and 40mm impact devices
• This less lethal devices give officers the ability to address a violent suspect from a safe distance
• Increased distance provides for more opportunity to use de- escalation techniques
• The less lethal shotgun was used on one (1) occasion while the 40mm was not used
• Any deployment, whether or not it makes contact with a subject, is a reportable use of force and is reviewed by the Professional Standards Unit
CALIFORNIA GOVERNMENT CODE 7070(C)(14) 33
511
CALIFORNIA GOVERNMENT CODE 7070(C)(14) 34
40MM Launchers and Munitions Bean Bag Shotgun and Munitions 512
Government Code 7070 requires the Police Department to:
• Disclose any equipment deemed military equipment
under this statute that the Department intends to acquire • Including the number and type sought, during the next reporting period.

Military Equipment Acquisitions 35
513
Transcend Robotics Vantage Robot
• This device is used to enter structures to locate violent, often armed, subjects wanted for violent crimes.
• This equipment provides a safer option for officers to get a view into a building or structure through the robot’s camera system, and decreases the likelihood of a lethal force encounter
• The total cost to purchase this robot is $62,818
• Paid for using California Supplemental Law Enforcement Services Fund (SLESF)
Military Equipment Acquisitions: ITEMS BEING SOUGHT 36
514
40mm Projectile Launchers
Nineteen (19) additional 40mm projectile launchers
• Less lethal tools allow officers to engage violent, potentially armed suspects from a safe distance, allowing officers to attempt de- escalation techniques
• Often prevent officers from using lethal force
• The addition of these items is intended to increase the availability of this option when needed
• The total cost to purchase these 40mm launchers is approximately $51,240 which will be paid using Asset Forfeiture Funds (AFF) and Supplemental Law Enforcement Services Fund (SLESF)
Military Equipment Acquisitions: ITEMS BEING SOUGHT 37
515
40mm rounds (training and live)
• The Department’s inventory of 40mm rounds has become
depleted over the last year due to expired rounds and use during previous years
• The addition of new 40mm projectile launchers also
increases the need for training and live rounds
• The total cost to purchase these rounds are $26,232.24 and will be paid using the General Fund
Military Equipment Acquisitions: ITEMS BEING SOUGHT 38
516
.223 Caliber Rifles
• Twenty-two (22) replacement .223 caliber rifles
• The rifles currently assigned to the SWAT team are over 20 years old, far exceeding their expected lifespan of five to seven years under SWAT team conditions
• Needed for increased firepower and accuracy in situations that require the ability to engage targets at longer distances, penetrate barriers, and effectively address threats, while minimizing risk to officers and members of the public
• Provide a tactical advantage in addressing high-risk scenarios such as active shooter situation or dealing with heavily armed suspects • Total cost to purchase these rifles is $57,920 and will be paid using Justice Administration Grant Funds
Military Equipment Acquisitions: ITEMS BEING SOUGHT 39
517

QUESTIONS
40 518

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. L.2

DATE: July 2, 2024

TO: City Council

FROM: Stephen Fischer, City Attorney, (805) 385-7483, [email protected]

SUBJECT: Introduction of Ordinance Prohibiting City Subsidy of Services Previously Funded by a Special District Under Specific Circumstances. (15 minutes)

RECOMMENDATION

That the City Council introduce and waive further reading of an ordinance titled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD ADDING ARTICLE VIII TO CHAPTER 2

OF THE OXNARD CITY CODE TO PROHIBIT THE CITY FROM SUBSIDIZING SERVICES PREVIOUSLY

FUNDED BY A COMMUNITY FACILITIES DISTRICT, LANDSCAPE MAINTENANCE DISTRICT OR

WATERWAYS ASSESSMENT DISTRICT IF RESIDENTS OF THOSE SPECIAL DISTRICTS VOTE TO

TERMINATE OR REDUCE SUCH FUNDING

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/jNfE0H16efQ

BACKGROUND

Many newer developments within the City of Oxnard have substantially greater amenities than older neighborhoods. The newer developments contain these enhanced amenities because, before they were built, a Community Facilities District (CFD), Landscape Management District (LMD) or Waterways Assessment District (WAD) was formed to fund the maintenance of these enhanced amenities and – in some cases – enhanced services.

While property owners within these developments pay extra taxes or assessments imposed by the special districts, the residents enjoy enhanced amenities that do not exist in older neighborhoods that do not pay additional taxes or assessments. The City would not have approved these newer developments without a CFD, LMD or WAD to pay for these enhanced amenities that do not exist in other neighborhoods.

If residents of a newer development with a special district choose to eliminate or reduce their CFD, LMD or WAD taxes or assessments, then the maintenance of these enhanced amenities and (in some cases) services should not be funded by the residents of the City as a whole. If the residents of the City were to fund these enhanced amenities due to the elimination or reduction in specific CFD, LMD or WAD taxes or assessments, then this would require cutting existing citywide services.

The proposed ordinance would amend the Oxnard City Code to prohibit the use of funding from the General Fund or other City-controlled funding sources to make up for the loss of the CFD, LMD or WAD funding that resulted from the residents within that special district voting to terminate or reduce the special district’s funding. Under the proposed regulations, the only exception to such prohibition would be when use of City funding is required to protect the public health, safety and welfare.

STRATEGIC PRIORITIES
519

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

The financial impact of approving this item is unknown at this time.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Kenneth Rozell, Chief Assistant City Attorney, Jason Zaragoza, Deputy City Attorney

ATTACHMENTS

1. PowerPoint

2. Ordinance

520
Ordinance to Prohibit City Subsidy of
Services Previously Funded by a
Special District
City Council
July 2, 2024
Kenneth Rozell
Chief Assistant City Attorney
521
Recommendation 2
That the City Council introduce an ordinance by title only and waive any further reading of the ordinance titled:
“AN ORDINANCE OF THE CITY OF OXNARD ADDING
ARTICLE VIII TO CHAPTER 2 OF THE OXNARD CITY CODE

TO PROHIBIT THE CITY FROM SUBSIDIZING SERVICES

PREVIOUSLY FUNDED BY A COMMUNITY FACILITIES

DISTRICT, LANDSCAPE MAINTENANCE DISTRICT OR

WATERWAYS ASSESSMENT DISTRICT IF RESIDENTS OF

THOSE SPECIAL DISTRICTS VOTE TO TERMINATE OR
REDUCE SUCH FUNDING”

522
Background
• Many newer developments have substantially greater
amenities than older neighborhoods. Newer developments contain these enhanced amenities because, before they were built, a Community Facilities District (CFD), Landscape Management District (LMD) or Waterways Assessment District (WAD) was formed to fund maintenance of these enhanced
amenities and – in some cases – enhanced services.
• While property owners within these developments pay extra taxes or assessments imposed by the special districts,
residents enjoy enhanced amenities that do not exist in older neighborhoods that do not pay additional taxes or
assessments. The City would not have approved these newer developments without a CFD, LMD or WAD to pay for these enhanced amenities.
3 523
Background
• If residents of a newer development with a special district choose to eliminate or reduce their CFD, LMD or WAD taxes or assessments, maintenance of these enhanced amenities and (in some cases) services should not be funded by residents of the City as a whole. If the City paid to fund these enhanced amenities due to elimination or reduction in CFD, LMD or WAD taxes or assessments, then this would require cutting existing citywide services.
• The proposed ordinance would amend the Oxnard City Code to prohibit the use of funding from the General Fund or other City- controlled funding sources to make up for the loss of the CFD, LMD or WAD funding that resulted from the residents within that special district voting to terminate or reduce the special district’s funding. The only exception to such prohibition would be when specific City funding is required to be provided to protect the public health, safety and welfare.
4 524
QUESTIONS?
525
ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD ADDING ARTICLE VIII TO CHAPTER 2 OF THE OXNARD CITY CODE TO PROHIBIT THE

CITY FROM SUBSIDIZING SERVICES PREVIOUSLY FUNDED BY A

COMMUNITY FACILITIES DISTRICT, LANDSCAPE MAINTENANCE DISTRICT

OR WATERWAYS ASSESSMENT DISTRICT IF RESIDENTS OF THOSE SPECIAL

DISTRICTS VOTE TO TERMINATE OR SUBSTANTIALLY REDUCE FUNDING

FOR SUCH SERVICES
WHEREAS, many newer developments within the City of Oxnard have substantially greater amenities than older neighborhoods within the City; and WHEREAS, the newer developments contain these enhanced amenities because – before they were built – a Community Facilities District (CFD), Landscape Management District (LMD) or Waterways Assessment District (WAD) was formed to fund the maintenance of these enhanced amenities and – in some cases – services; and WHEREAS, although the property owners of these developments pay the higher taxes or assessments imposed by the special districts, the residents of these developments enjoy enhanced amenities that do not exist in older neighborhoods that do not pay the additional taxes or assessments; and
WHEREAS, the City would not have approved these newer developments without a CFD, LMD or WAD paying for these enhanced amenities that do not exist in other neighborhoods; and
WHEREAS, if the residents of a newer development with a special district choose to eliminate or substantially reduce their CFD, LMD or WAD taxes or assessments, then the maintenance of these enhanced amenities and – in some cases – services should not be funded by the residents of the City as a whole; and
WHEREAS, if the residents of the City were to fund these enhanced amenities due to the elimination or substantial reduction in specific CFD, LMD or WAD taxes or assessments, then this would require cutting existing citywide services; and WHEREAS, the City Council wishes to enact new regulations that would prohibit City subsidy of a special district’s services that were previously funded by that special district unless such funding is necessary to protect the public health, safety and welfare. 526

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD DOES ORDAIN AS FOLLOWS:

Section 1. The City Council finds the foregoing recitals and their findings to be true and correct, and hereby incorporates such recitals and their findings into this Ordinance.

Section 2. Article VIII is hereby added to Chapter 2 of the Oxnard City Code to read as follows:
“ARTICLE VIII. PROHIBITION OF CITY SUBSIDY OF COMMUNITY

FACILITIES DISTRICT, LANDSCAPE MAINTENANCE DISTRICT AND

WATERWAYS ASSESSMENT DISTRICT SERVICES
Section 2-255. PROHIBITION OF CITY SUBSIDY OF COMMUNITY

FACILITIES DISTRICT, LANDSCAPE MAINTENANCE DISTRICT AND

WATERWAYS ASSESSMENT DISTRICT SERVICES IN SPECIFIC
CIRCUMSTANCES.

If residents within a Community Facilities District (CFD), Landscape Maintenance District (LMD) or Waterways Assessment District (WAD) vote to terminate or substantially reduce the funding for their CFD, LMD or WAD, then the City Council is prohibited from using money from General Fund or other City-controlled funding sources to make up for the loss of the CFD, LMD or WAD funding. The only exception to this prohibition is when specific services are required to be provided in order to protect the public health, safety and welfare.”
Section 3. Severability.

If any section, sentence, clause or phrase of this Ordinance is determined to be invalid, illegal or unconstitutional by a decision or order of any court or agency of competent jurisdiction, then such decision or order will not affect the validity and enforceability of the remaining portions of this Ordinance. The City Council declares that it would have passed and adopted the Ordinance, and each section, sentence, clause or phrase thereof, regardless of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Section 4. Pursuant to Government Code Section 36933(c)(1), the City Attorney was designated to prepare, and the City Clerk published, a summary of this ordinance, and a certified copy of the ordinance was posted in the Office of the City Clerk a minimum of five days before the City Council’s adoption of the ordinance. 527
Section 5. The City Clerk shall certify as to the adoption of this ordinance and shall cause the summary thereof to be published within fifteen calendar (15) days of the adoption and shall post a certified copy of this ordinance, including the vote 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 __________, 2024, finally adopted on ___________, 2024, to become effective thirty (30) days thereafter.

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
John C. Zaragoza, Mayor
ATTEST:
__________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
__________________________________
Stephen M. Fischer, City Attorney
528

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. L.3

DATE: July 2, 2024

TO: City Council

FROM: Stephen Fischer, City Attorney, (805) 385-7483, [email protected]

SUBJECT: Introduction of Ordinance Establishing a Tobacco Retailer Cap. (15 minutes)

RECOMMENDATION

That the City Council introduce and waive further reading of an ordinance titled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD AMENDING SECTION 11-377 OF THE

OXNARD CITY CODE BY ESTABLISHING A CAP ON THE NUMBER OF TOBACCO RETAILER PERMITS THAT MAY BE ISSUED BY THE CITY WITH CERTAIN EXCEPTIONS.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/O86ypGp-ARA

BACKGROUND

There are 154 Tobacco Retailer permits issued in the City (population of 202,063.) Within Ventura County, in comparison to the existing 154 Tobacco Retailers in the City, Ventura has 113 Tobacco Retailers, Thousand Oaks has 66 Tobacco Retailers and Simi Valley has 99 Tobacco Retailers.

On May 19, 2024, staff received direction from the Community Services, Public Safety, Housing & Development Committee on the following three options:

Option 1: Establish a cap on the number of Tobacco Retailer permits issued in the City without exceptions; Option 2: Establish a cap on the number of Tobacco Retailer permits issued in the City with certain exceptions; or Option 3: Do not establish a cap on the number of Tobacco Retailer permits issued in the City.

The Committee recommended Option 2, establishing a Tobacco Retailer cap of 100 with certain exceptions.

DISCUSSION

Tobacco is the leading cause of preventable death in the United States and kills nearly 8 million people each year globally (World Health Organization 2019). According to the Centers for Disease Control and Prevention (CDC), more than 480,000 deaths in the United States each year are attributable to tobacco use, including one-third of all cancer deaths. In addition to the obvious adverse health impact, tobacco-related death and disease have an adverse economic impact. The CDC reports that tobacco use costs the United States billions of dollars each year. State law prohibits the sale or furnishing of cigarettes, tobacco products, and smoking paraphernalia to minors, as well as the purchase, receipt, or possession of tobacco products by minors. (California Penal Code section 308.) State law also prohibits public school students from smoking or using tobacco products while on campus, attending school-sponsored activities, or under the supervision or control of school district employees. (California Education Code section 48901(a).) In addition, state law prohibits smoking in enclosed places of employment (California Labor Code section 6404.5). Despite these restrictions, minors continue to obtain cigarettes and other Tobacco Products at alarming rates. 13.7% of California youth have 529
smoked an entire cigarette by 8th grade according to a 2022 survey conducted by the California Department of Public Health. The former United States Surgeon General Regina Benjamin at a February 2014 summit emphasized that the key factor in the fight against tobacco is preventing minors from becoming smokers. She noted, "for every smoker who dies, there are two so-called replacement smokers trying a cigarette for the first time and getting hooked."

Currently, there are 154 Tobacco Retailer permits issued by the City. The City has a substantial interest in promoting compliance with state laws prohibiting sales of cigarettes and tobacco products to minors, in promoting compliance with laws intended to discourage the purchase of tobacco products by minors, and in protecting children from illegally obtained tobacco.

If adopted, the ordinance before the City Council would amend Section 11-377 of the Oxnard City Code by establishing a cap on the total number of Tobacco Retailer permits (100 permits maximum) that may be issued by the City with certain exceptions. Those exceptions are as follows:

1. The adult child of a Tobacco Retailer permittee is eligible to acquire a Tobacco Retailer permit at the same location as the previously operated Tobacco Retail establishment without impacting the cap.

2. A Tobacco Retailer who must relocate to another location in the city to comply with a government order is eligible to acquire a Tobacco Retailer permit without impacting the cap.

3. A spouse or domestic partner may acquire ownership of the Tobacco Retailer establishment through the death of, or divorce from the permit holder, and be eligible to acquire a Tobacco Retailer permit without impacting the cap.

STRATEGIC PRIORITIES

This agenda item supports the Quality of Life strategy. The purpose of the Quality of Life strategy is to restore and increase quality services and programs that enrich Oxnard's diverse community, promotes safe neighborhoods, encourages community engagement, and supports our residents in their efforts to improve their quality of life.

This agenda item supports Public Safety strategy. The purpose of the Public Safety strategy is to restore and modernize the delivery of public safety services to provide for the safety of our neighborhoods and health of our community.

FINANCIAL IMPACT

There is no financial impact.

COMMITTEE OUTCOME

On May 19, 2024, the Community Services, Public Safety, Housing & Development Committee recommended by a 3-0 vote that staff present the City Council with an ordinance establishing a tobacco retailer cap with certain exceptions.

Prepared by: Andrew Gonzalez, Deputy City Attorney, Jason Zaragoza, Deputy City Attorney

ATTACHMENTS

1. Tobacco Retailer Cap Ordinance

2. Tobacco Ordinance Presentation

530
ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD
AMENDING SECTION 11-377 OF THE OXNARD CITY CODE BY ESTABLISHING

A CAP ON THE NUMBER OF TOBACCO RETAILER PERMITS THAT MAY BE

ISSUED BY THE CITY WITH CERTAIN EXCEPTIONS
WHEREAS, there are currently 154 Tobacco Retailer permits issued by the City of Oxnard (“City”); and
WHEREAS, within Ventura County, in comparison to the existing 154 Tobacco Retailers in the City, the City of Ventura has 113 Tobacco Retailers, the City of Thousand Oaks has 66 Tobacco Retailers and the City of Simi Valley has 99 Tobacco Retailers; and
WHEREAS, tobacco is the leading cause of preventable death in the United States and kills nearly 8 million people each year globally (World Health Organization 2019); and
WHEREAS, according to the Centers for Disease Control and Prevention (“CDC”), more than 480,000 deaths in the United States each year are attributable to tobacco use, including one-third of all cancer deaths; and WHEREAS, state law prohibits the sale or furnishing of cigarettes, tobacco products, and smoking paraphernalia to minors, as well as the purchase, receipt, or possession of tobacco products by minors; and
WHEREAS, state law also prohibits public school students from smoking or using tobacco products while on campus, attending school-sponsored activities, or under the supervision or control of school district employees; and WHEREAS, despite these restrictions, minors continue to obtain cigarettes and other tobacco products at alarming rates -- 13.7% of California youth have smoked an entire cigarette by 8th grade according to a 2022 survey conducted by the California Department of Public Health.

WHEREAS, the City has a substantial interest in promoting compliance with state laws prohibiting sales of cigarettes and tobacco products to minors, in promoting compliance with laws intended to discourage the purchase of tobacco products by minors, and in protecting youth from illegally obtained tobacco; and WHEREAS, the City Council desires to establish a cap on the number of Tobacco Retailer permits that may be issued by the City with certain exceptions: where a Tobacco Retail establishment is transferred to an adult child of the existing owner, where a Tobacco Retail establishment must relocate due to a government order, or where the 531
spouse of domestic partner of an existing owner acquires ownership of the establishment through death or divorce.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD DOES ORDAIN AS FOLLOWS:

Section 1. The City Council finds the foregoing recitals and their findings to be true and correct, and hereby incorporates such recitals and their findings into this Ordinance.

Section 2. Section 11-377 of the Oxnard City Code is hereby amended to read as follows:
“SEC. 11-377 ISSUANCE OF PERMIT AND PERMIT CAP
(A) Upon receipt of a completed application for a tobacco retailer permit and the applicable permit fee, the collector shall issue a permit, after receiving input from appropriate city departments, unless substantial evidence demonstrates that one or more of the following bases for denial exists:
(1) The information presented in the application is inaccurate or false. (2) The application seeks authorization for tobacco retailing at a location for which this article prohibits issuance of tobacco retailer permits. (3) The application seeks authorization for tobacco retailing for a proprietor to whom this article prohibits a permit to be issued.
(4) The application seeks authorization for tobacco retailing that is prohibited pursuant to this article, that is unlawful pursuant to this code, or that is unlawful pursuant to any other law.
(B) The total number of tobacco retailer permits issued by the collector shall not exceed 100.
(C) In the event that the number of active tobacco retailer permits reaches the maximum limit of 100 as specified in subsection (B), no additional tobacco retailer permits shall be issued until such time as the total number of active tobacco retail permits falls below the maximum limit.
(D) Notwithstanding the cap on the total number of tobacco retailer permits as specified in subsections (B) and (C), the following exceptions shall apply:
(1) Adult Child Exception: The adult child of a tobacco retailer who operated a tobacco retail establishment at a specific location shall be eligible to acquire a tobacco 532
retailer permit at the same location as the previously operated tobacco retail establishment without impacting the cap on the total number of permits. (2) Relocation Due to Government Order: A tobacco retailer who is required to relocate to another location within the city due to a government order or regulatory action shall be eligible to acquire a tobacco retailer permit at a new location without impacting the cap on the total number of permits.
(3) Spouse or Domestic Partner Succession: Upon the death of or divorce from the permit holder, a spouse or domestic partner who acquires ownership of the tobacco retailer establishment shall be eligible to acquire a tobacco retailer permit without impacting the cap on the total number of permits.
(D) Any permit issued under the exceptions established in subsections (D) shall be subject to all other applicable provisions of the code governing tobacco retailer permits.” Section 3. Severability.

If any section, sentence, clause or phrase of this Ordinance is determined to be invalid, illegal or unconstitutional by a decision or order of any court or agency of competent jurisdiction, then such decision or order will not affect the validity and enforceability of the remaining portions of this Ordinance. The City Council declares that it would have passed and adopted the Ordinance, and each section, sentence, clause or phrase thereof, regardless of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Section 4. Pursuant to Government Code Section 36933(c)(1), the City Attorney was designated to prepare, and the City Clerk published, a summary of this ordinance, and a certified copy of the ordinance was posted in the Office of the City Clerk a minimum of five days before the City Council’s adoption of the ordinance.

Section 5. The City Clerk shall certify as to the adoption of this ordinance and shall cause the summary thereof to be published within fifteen calendar (15) days of the adoption and shall post a certified copy of this ordinance, including the vote 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 __________, 2024, finally adopted on ___________, 2024, to become effective thirty (30) days thereafter. ///
///
///
///
533
AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
John C. Zaragoza, Mayor
ATTEST:
__________________________________
Rose Chaparro, City Clerk
APPROVED AS TO FORM:
__________________________________
Stephen M. Fischer, City Attorney
534
Ordinance Establishing a Tobacco
Retailer Cap.

Andrew Gonzalez, Deputy City Attorney
City Council
July 2, 2024
535
Recommendation

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF OXNARD AMENDING SECTION 11-377 OF

THE OXNARD CITY CODE BY ESTABLISHING A

CAP ON THE NUMBER OF TOBACCO RETAILER

PERMITS THAT MAY BE ISSUED BY THE CITY

WITH CERTAIN EXCEPTIONS

536
Background
There are 154 Tobacco Retailer permits issued in the City (population of 202,063.)  Within  Ventura County, in
comparison to the existing 154 Tobacco Retailers in the City, Ventura has 113 Tobacco Retailers, Thousand Oaks has 66 Tobacco Retailers and Simi Valley has 99 Tobacco Retailers.

537
Background
On May 19, 2024, staff received direction from the Community Services, Public Safety, Housing & Development Committee on the following three options:

Option 1: Establish a cap on the number of Tobacco Retailer permits issued in the City without exceptions;
Option 2: Establish a cap on the number of Tobacco Retailer permits issued in the City with certain exceptions; or
Option 3: Do not establish a cap on the number of Tobacco Retailer permits issued in the City.

The Committee recommended Option 2, establishing a Tobacco Retailer cap of 100 with certain exceptions.

538
Discussion
Currently, there are 154 Tobacco Retailer permits issued by the City.  The  City has a substantial interest in promoting compliance with state laws prohibiting sales of cigarettes and tobacco products to minors, in promoting compliance with laws intended to discourage the purchase of tobacco products by minors, and in protecting children from illegally obtained tobacco.

539
Discussion
If adopted, the ordinance before the City Council would amend Section 11-377 of the Oxnard City Code by establishing a cap (100 permits) on the total number of Tobacco Retailer permits that may be issued by the City with certain exceptions.

Those exceptions are as follows:

1.The adult child of a Tobacco Retailer permittee is eligible to acquire a Tobacco Retailer permit at the same location as the previously operated Tobacco Retail establishment without impacting the cap.

2. A Tobacco Retailer who must relocate to another location in the city to comply with a government order is eligible to acquire a Tobacco Retailer permit without impacting the cap.

3. A spouse or domestic partner may acquire ownership of the Tobacco Retailer establishment through the death of, or divorce from the permit holder, and be eligible to acquire a Tobacco Retailer permit without impacting the cap.

540
Questions?

541

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. L.4

DATE: July 2, 2024

TO: City Council

FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]

SUBJECT: City of Oxnard Annual Investment Policy for the Fiscal Year 2024-25, and Annual Delegation of Investment Authority. (10 minutes)

RECOMMENDATION

That the City Council:

1. Adopt a resolution adopting FY 2024-25 investment policy for the City of Oxnard.

2. Adopt a resolution delegating investment authority to the City Chief Financial Officer.

(This item did not originate in Committee.)

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/UGotl3jSinM

BACKGROUND

California Government Code Section 53646 establishes that a treasurer or chief fiscal officer annually render an investment policy to be considered at a public meeting. The City of Oxnard’s investment policy section 16.0 established that the investment policy shall be reviewed annually and adopted by City Council by resolution.

California Government Code Section 53607 establishes that the City Council may delegate its authority to invest or to reinvest City funds, for a one-year period to the City Treasurer.

During the annual audit, external auditors prepare a report on internal controls to the City Manager and City Council. The report has found instances of non-compliance with the City’s Adopted Investment Policy. Additionally, staff has also identified certain California Government Code requirements that are not being followed in the periodic reporting provided by the City Treasurer.

The recent retirement of Assistant City Treasurer Eden Alomeri, who had closely monitored the City Treasurer’s investment activities, makes it necessary to now address these issues to ensure compliance with the California Government Code and the City’s Investment Policy by restructuring the Billing and Licensing department and recommending the delegation of investment authority to the City’s Chief Financial Officer.

California Government Code Section 53060 allows the legislative body of any public or municipal corporation or district to contract with and employ any persons for the furnishing to the corporation or district special services and advice in financial, economic, accounting, engineering, legal or administrative matters if such persons are specially trained and experienced and competent to perform the special services required.

California Government Code Section 37103 allows the legislative body of the City to contract with any specially trained 542
and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.

DISCUSSION

The City of Oxnard’s Investment Policy FY 2024/25 outlines procedures and guidelines for managing surplus funds in a fiscally responsible manner. The Policy encompasses those funds over which the City exercises fiscal control, stipulates allowable and unallowable investment alternatives, establishes parameters for selecting broker/dealers and financial institutions with which the City may do business, and prioritizes the City’s public funds management objectives of safety, liquidity, and yield. The Policy also mandates review and approval by the City Council annually or whenever significant changes occur.

The City of Oxnard Delegation of Investment Authority resolution delegates to the City Chief Financial Officer the authority to invest City surplus monies within the parameters of the City’s Investment Policy. The Chief Financial Officer is a competent professional with multiple years of experience in treasury, investment and debt management in private and government entities.

The Delegation to the CFO will address the non-compliance instances with the City’s adopted Investment Policy found during the annual audit. The reporting of investment activities to the Finance and Governance Committee and City Council will follow the requirements of California Government Code Section 53646(b)(1), ensure transparency in the decision-making process related to investments, along with the ongoing compliance with the City’s adopted Investment Policy.

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 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

There is no financial impact.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Javier Chagoyen-Lazaro, Chief Financial Officer

ATTACHMENTS

1. Resolution - FY 24-25 Delegation of Investment Authority

2. Resolution - FY 24-25 Annual Investment Policy

3. City of Oxnard FY 2024-25 Investment Policy

4. City of Oxnard FY 2023-24 Investment Policy

5. Annual Investment Policy and Delegation of Investing Authority Presentation

543

CITY COUNCIL OF THE CITY OF OXNARD

RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

OXNARD DELEGATING INVESTMENT AUTHORITY TO THE
CITY’S CHIEF FINANCIAL OFFICER FOR A ONE-YEAR PERIOD
WHEREAS, on September 15, 1992, the City Council adopted Resolution No. 10,455, delegating to the City Treasurer the authority to invest and reinvest City funds; and
WHEREAS, effective January 1, 1997, Government Code section 53607 was amended to provide t he authority of the City Council to invest or to reinvest City funds, or to sell or exchange secur ities so purchased, may be delegated for a one-year period to the City Treasurer by the Council; and WHEREAS, Government Code sections 37103 and 53060 authorize the City Council to contract with and employ any person specially trained, experienced and competent, for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters; and
WHEREAS, it is the intention of the City Council to delegate such authority to the City Chief Financial Officer.

NOW, THEREFORE, the City Council of the City of Oxnard resolves as follows:

1. The City Chief Financial Officer is hereby delegated the authority to invest and to reinvest City surplus funds, and to sell and exchange securities so purchased, for a one-year period, in accordance with the City’s adopted Investment Policy.

2. Resolution No. 10,455 is hereby repealed.

PASS AND ADOPTED this 2nd day of July, 2024 by the following vote

AYES:

NOES:

ABSTAIN:

ABSENT:

John C. Zaragoza, Mayor

ATTEST

Rose Chaparro, City Clerk

APPROVED AS TO FORM

Stephen M. Fischer, City Attorney
544

CITY COUNCIL OF THE CITY OF OXNARD

RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
OXNARD ADOPTING THE FY 2024-25 INVESTMENT POLICY
WHEREAS, a "Statement of Investment Policy" is rendered to the City Council on an annual basis or whenever there are recommended changes, whichever occurs first; and WHEREAS, Government Code Section 53646(a)(2) provides that the treasurer or chief fiscal officer may annually render to the City Council a statement of investment policy, which the City Council shall consider at a public meeting; and
WHEREAS, the existing policy has been reviewed and revised in order to provide for operational flexibility without sacrificing internal controls or increasing financial risk to the City.

NOW, THEREFORE, the City Council of the City of Oxnard resolves to adopt the FY 2024 -25 Investment Policy attached hereto as Exhibit A.

PASS AND ADOPTED 2nd day of July, 2024 by the following vote

AYES:

NOES:

ABSTAIN:

ABSENT:

John C. Zaragoza, Mayor

ATTEST

Rose Chaparro, City Clerk

APPROVED AS TO FORM

Stephen M. Fischer, City Attorney
545

CITY OF
OXNARD

FISCAL YEAR
2024-25

INVESTMENT
POLICY

546

City of Oxnard

INVESTMENT POLICY

TABLE OF CONTENTS

Section Page No.

1.0 Policy 1

2.0 Scope 1

3.0 Prudence 1

4.0 Objectives 2

5.0 Delegation of Authority 2

6.0 Ethics & Conflicts of Interest 3

7.0 Authorized Financial Institutions & Dealers 3

8.0 Authorized & Suitable Investments 3

9.0 Collateralization 7

10.0 Investment Pools 7

11.0 Authorized Investment for Bond Funds 7

12.0 Safekeeping & Custody 7

13.0 Diversification 8

14.0 Trading of Securities 8

15.0 Maximum Maturities 8

16.0 Portfolio Maturity Limitation 8

17.0 Monitoring Credit Ratings 9

18.0 Reporting 9

19.0 Internal Controls 9

20.0 Performance Standards 9

21.0 Policy Review 10

22.0 State Law 10

23.0 Investment Policy Adoption 10
Appendix Glossary of Cash Management & Investment
Terms
11 Exhibit A List of Investment Advisor 14
Exhibit B List of Authorized Brokers 15
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City of Oxnard

INVESTMENT POLICY

1.0 POLICY
The Legislature of the State of California has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern (California Government Code (CGC) § 53600.6 and 53630.1 (CGC §53600.6 and §53630.1);

The City Council may invest surplus monies, not required for the immediate necessities of the local agency, in accordance with the provisions of CGC §5922 and CGC §53601 et seq.

The Chief Financial Officer of the City of Oxnard shall annually, or whenever there are recommended changes, whichever occurs first, prepare and submit a statement of investment policy and such policy, and any changes thereto, shall be considered by the legislative body at a public meeting (CGC §53646 (a)).

The policy of the City of Oxnard is to invest funds in a manner which will provide: (i) the maximum security; (ii) the funds necessary to meet the daily cash flow demands of the City; and (iii) the highest investment return while conforming to all statutes governing the investment of the City funds within the constraints of this Investment Policy.

This policy is intended to provide guidelines for the prudent investment of the City’s f unds and to enhance the economic status of the City while protecting its pooled cash. Funds will be invested in accordance with this policy and with applicable sections of the California Government Code.

2.0 SCOPE

This investment policy applies to the City’s pooled investment fund, which includes the General Fund, special revenue funds, capital project funds, enterprise funds, trust and agency funds, and internal service funds

This policy does not include retirement, retiree health care savings/trust/p lan(s), nor deferred compensation plans, nor proceeds of bonds, nor Successor Agency funds.

Pooling of funds

Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investmen ts earnings and to increase efficiencies with regards to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounti ng principles.

3.0 PRUDENCE
The standard of prudence to be used by designated investment signatories shall be the "prudent investor" standard (CGC §53600.3) and shall be applied in the context of managing an overall portfolio. Investments shall be made with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City.

Designated investment signatories, acting in accordance with written procedures, this Investment Policy, 548

and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

4.0 OBJECTIVES
As specified in CGC §53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds; the primary objectives, in priority order, of the investment activities shall be:

A. Safety: Safety of principal is the foremost objective of the investment program.

Investments made by the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required to prevent any potential loss on any individual security or depository from exceeding the income generated from the remainder of the portfolio.

B. Liquidity: The investment portfolio will remain sufficiently liquid to enable the C ity to meet all operating requirements which might be reasonably anticipated.

C. Return on Investments: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, considering the investment risk constraints and the cash flow characteristics of the portfolio. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low- risk securities in anticipation of earning a fair return relative to the risk being assumed.

5.0 DELEGATION OF AUTHORITY
Authority to manage the investment program is derived from CGC §53600, et seq., CGC §37103 and CGC § 53060. Management’s responsibi lity for the investment program shall be delegated for a one -year period by the City Council via resolution, to the Chief Financial Officer (CFO) who shall thereafter assume full responsibility for those transactions until the delegation of authority is re voked by the City Council.

Subject to review, the City Council may renew the delegation of authority each year. The CFO shall establish written procedures for the operation of the investment program consistent with this Investment Policy.

Procedures shoul d include reference to safekeeping, wire transfer agreements, collateral/depository agreements and banking services contracts, as appropriate. Such procedures shall include explicit delegation of authority to persons/positions responsible for investment tr ansactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the CFO. The CFO shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinates.

The CFO may authorize the Assistant City Treasurer to perform the CFO’s functions and duties under this policy in the absence of the CFO. The CFO may authorize a manager in the Finance Department to execute transactions as prescribed by the CFO in the abse nce of the CFO and Assistant City Treasurer. When acting as the CFO’s delegate as provided in this paragraph, the delegate shall be subject to the same limitations, obligations, and requirements as the CFO.

The CFO may engage the services of one or more external investment advisors to assist in the management of the City’s investment portfolio in a manner consistent with this Investment Policy and the City’s investment objectives and any written directions provided by the CFO. Furthermore, the advisors may not take possession of City’s cash or securities. Such investment advisors must be registered under the Investment Advisers Act of 1940.

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6.0 ETHICS AND CONFLICTS OF INTEREST

Officers, employees and financial advisors involved in the placement of investments shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

City staff shall disclose to the City Manager an d on the annual Statement of Economic Interest Form any material financial interests in financial institutions that conduct business with the City, and they shall disclose any material personal financial/investment positions that could be related to the Ci ty’s investment performance.

7.0 AUTHORIZED FINANCIAL INSTITUTIONS, BROKERS AND DEALERS The CFO shall maintain a list of approved and authorized financial institutions selected based on creditworthiness, financial strength, experience, and capitalization.

To the extent the City Treasurer has entered into contract twitch depositories pursuant to statutory duty, the CFO shall utilize those depositories.

The CFO shall formally use authorized investment broker -dealers to provide investment services to the City. Investment brokers -dealers may be primary dealers or regional brokers with branch offices in the State of California performing the transactions with the City. Brokers/dealers must complete a broker - dealer statement of qualifications before being ap proved by the CFO, execute an annual certification of acknowledgment of the City’s Investment Policy by broker -dealer employees and supervisory personnel, and be in good standing with the California Department of Securities (CDS), the Securities and Exchan ge Commission (SEC), the Financial Industry Regulatory Authority (FINRA), or other applicable self-regulatory organizations. A periodic review of authorized brokers/dealers is essential to serve the City’s investment needs.

The City may engage the support services of outside investment advisors in regard to its investment program, so long as it can be clearly demonstrated that these services produce a net financial advantage or necessary financial protection of the City’s financial resources. Investment ad visors shall follow this policy, state law, and other such written instructions as provided by the CFO. Contracted investment advisors may use their own brokers. The CFO may conduct periodic reviews of contracted investment advisors, including review of FINRA reports.

8.0 AUTHORIZED AND SUITABLE INVESTMENTS

The City’s investments are governed by the California Government Code. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the investments listed below. In the event an apparent discrepancy is found between this Investment Policy and the Government Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the date an investment is purchased. Credit ratings, as shown, specify the minimu m credit rating category required at the point of purchase.

A. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

B. Federal agency or United States government-sponsored enterprise obligations , participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. 550

C. State Municipal Securities – Registered treasury notes or bonds issued by any of the 50 United States, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled or operated by a state or by a department, board, agency, or authority of any of the 50 states. Securities eligible for investment under this paragraph shall be rated in a rating category of “A” or its equivalent or better by a Nationally Recognized Statistical Rating Organization (NRSRO). Short-term municipal securities eligible for investment shall be rated at or above the following credit agencies investment grade ratings; Sp -1 by Standard & Poor’s, F -1 by Fitch, and MIG-1 by Moody’s. These ratings for short term municipal securities signify the issuer’s strong capacity to pay principal and interest. Not more than 10 percent of the City’s funds shall be invested in state and local municipal securities.

D. California Local Agency Municipal Securities – Bonds, notes, warrants or other evidence of indebtedness of a local agency or municipality located within the State of California, including debt securities issued by the City. Given potential issues with arbitrage regulations, City’s legal counsel shall review any potential purchase of City’s own debt before the purchase. Securities eligible for investment under this paragraph shall be rated in a rating category of “A” or its equivalent or better by a NRSRO.

E. Bank deposits, including demand deposit accounts, savings accounts, and market rate accounts, time deposits, and certificates of deposit in financial institutions located in California. Bank deposits are required to be collateralized as specified under Government Code § 53630 et. seq.

Agreements allowing for the waiver of the collateral requirement for that amount of deposit covered by the Federal Depos it Insurance Corporation may be implemented provided the remainder of the deposit is secured by collateral as required by the Government Code.

F. Negotiable Certificates of Deposit. Negotiable certificates of deposit (NCD) issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state -licensed branch of a foreign bank. Purchases are limited to securities rated in a rating category of “A” (long- term) and/or “A-1” (short-term) or their equivalents or better by a NRSRO. NCD for which the full amount of the principal and the interest that may be accrued during the maximum term of each certificate is insu red by federal deposit insurance are exempt from the rating requirements. A maximum of 30 percent of the portfolio may be invested in this category. The maximum investment maturity will be restricted to five years.

G. Placement Service Deposits (PSD). Funds may be placed with a private sector entity that assists in the placement of deposit with eligible financial institutions located in the United States (CGC § 53601.8). The full amount of the principal and the interest that may be accrued during the maximum term of each PSD shall always be insured by federal deposit insurance. The maximum portfolio exposure to Placement Service Deposits is limited to 30 percent. The maximum investment maturity will be restricted to five years.

H. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all the following conditions in either paragraph (1) or paragraph (2):

(1) The entity meets the following criteria:
(a) Is organized and operating in the United States as a general corporation; (b) Has total assets more than five hundred million dollars ($500,000,000); (c) Has debt other than commercial paper, if any, that is rated in category of "A" or its equivalent or better by a NRSRO.

551

(2) The entity meets the following criteria:
(a) Is organized within the United States as a special purpose corporation, trust, or limited liability company;
(b) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond;
(c) Has commercial paper that is rated in a rating category of "A -1" or better, or the equivalent, by a NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. A maximum of 25 percent of the portfolio may be invested in this category.

I. Local Agency Investment Fund (LAIF) investment pool is a voluntary program created by statute as an investment alternative for California’s local governments and special districts and is under the administration of the State Governor of California. All securities purchased by LAIF are under the authority of Government Code §16429 and §16480.4. As part of the Pooled Money Investment Account (PMIA), LAIF has oversight by the Pooled Money Investment Board (PMIB), and an in- house Investment Committee. LAIF also has oversight by the Local Agency Investment Advisory Board and is audited by the Bureau of State Audits on an annual basis. Investment in California LAIF cannot exceed the maximum deposit per agency limit as set by the Local Agency Investment Fund.

J. Local Government Investment Pools (LGIP). Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code § 6509.7. To be elig ible for purchase, the pool must meet the requirements of CGC § 53601(p).

Whenever the City has any funds invested in a LGIP, the CFO shall maintain on file a copy of the pools’ current information statement to be reviewed on a periodic basis. Investment in LGIPs cannot exceed the maximum deposit limit as set by each LGIP.

K. Money Market Funds - Investing solely in U.S. Treasury securities and U.S. Government Agency securities, and repurchase agreements relating to the above obligations. To be eligible, these Money Market Funds must have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs. (B) Retained an investment advisor with not less than five years of experience and registered or exempt from registration with the SEC, with assets under management more than five hundred million dollars ($500,000,000). No more than 20 percent of the portfolio may be invested in Money Market Fun ds with no more than 10 percent invested in any one money market mutual fund.

L. Repurchase Agreements – The City may invest in repurchase agreements with banks and dealers with which the City has entered into a master repurchase agreement which specifies te rms and conditions of repurchase agreements.

1) Transactions shall be limited to the primary dealers and banking institutions rated in a rating category of “A” or its equivalent or better by a NRSRO, or with a financially stable banking institution which the City has a substantial banking relationship. The maturity of repurchase agreements shall not exceed 90 days. The market value of securities used as collateral for repurchase agreements shall be monitored daily by the CFO and will not be allowed to fall below 102 percent of the value of the repurchase agreement plus the value of collateral more than the value of the repurchase agreement.

To conform with the Federal Bankruptcy Code which provides for the liquidation of securities held as collateral for repurchase agreements, the only securities acceptable as collateral shall be securities that are direct obligations of, or that are fully 552

guaranteed as to principal and interest by the United States or any agency of the United States.

2) Not more than 40 percent of the portfolio may be invested in repurchase agreements and a security interest satisfactory to the City shall always be maintained in the securities subject to a repurchase agreement.

M. Medium Term Notes (MTN): MTNs defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases in this category shall not exceed 30 percent of the portfolio and must be rated in a rating category of “A” or its equivalent, or better by a NRSRO.

N. U.S. Instrumentalities (Supranational). Un ited States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, with a maxi mum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Purchases are limited to securities that are rated in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 20 percent of th e portfolio may be invested in United States Instrumentalities.

Ineligible Investments: Investments not described herein, including but not limited to, reverse repurchase agreements and common stocks are prohibited from use in this portfolio. This Investment Policy further specifically disallows investments in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, or any security that could result in zero interest accrual if held to maturity. The City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates.

City Interfund Loans – Funds may be invested in loans to provide specific funding to City Programs, provided no loan shall violate any limitations prescribed by California law. Interfund loans shall be approved by City Council through the corresponding promissory note, including at a minimum, the description of the loan, the rate of interest assigned to the loan and the date on which the loan will be repaid.

9.0 COLLATERALIZATION
Collateralization is required on two types of investments: uninsured bank deposits and repurchase agreements.

Uninsured bank deposits may only be invested with financial institutions which participate in the California Local Agency Security Program (LASP) administered by the California Department of Business Oversight.

LASP provides for collateral requirements, oversight and monitoring, and reporting by financial institutions.

Collateral is also required for repurchase agreements. The market value of secur ities that underlie a 553

repurchase agreement shall not be allowed to fall below 102% of the value of the repurchase agreement and the value shall be adjusted no less than quarterly. Securities that can be pledged for collateral shall consist only of securities permitted in this policy. Collateral shall be held by an independent third party with whom the City has established a custodial agreement.

10.0 INVESTMENT POOLS
Investment pools include LAIF, county pooled investment funds, shares of beneficial interest (mutual funds and money market funds), and joint powers authority pools. A thorough investigation of any pool or fund is required prior to the City’s investment and on a periodic basis while funds are invested. The investigation will include review of the following items:
o Eligible investments;
o Investment policy and/or investment objectives;
o Security safeguarding, settlement process, pricing;
o Allowable deposits and withdrawals;
o Interest calculation, distribution, and treatment of gains/losses; o Schedule for receiving statements and portfolio listings; o Fees.
o Retained earnings
o Eligibility for bond proceeds

11.0 AUTHORIZED INVESTMENTS FOR BOND PROCEEDS
Bond proceeds shall be invested in the securities permitted pursuant to City Council approved bond documents. If the bond documents are silent as to the permitted investments, bond proceeds will be invested in the securities permitted by this policy. Notwithstanding the other provisions of this Investment Policy, the dollar portfolio, percentage, and term limitations listed elsewhere in the Investment Policy do not apply to bond proceeds. In addition to the securities listed in Section 8.0 above, bond proceeds may be invested in a structured investment product if approved by the CFO.

12.0 SAFEKEEPING AND CUSTODY
As required by CGC §53601 all security transactions entered by the City shall be conducted on Delivery versus Payment basis. Delivery versus Payment or DVP basis means all securities purchased or acquired shall be delivered to the City by book entry, physical delivery, or third -party custodial agreement.

Investments in the state pool, local government investment pools, or money market funds are undeliverable, and therefore, not subject to the delivery or third-party safe keeping requirements.

13.0 DIVERSIFICATION
The City Council recognizes that investment risks can result from issuer defaults, market price changes, or various technical complications leading to temporary illiquidity. Portfolio diversification is employed to minimize these risks. Investment signatories are expected to display prudence in the selection and/or approval of securities, to minimize the risks present in the investment portfolio. No individual investment transaction shall be undertaken which jeopardizes the total capital position of the overall portfolio. To promote diversification, no more than 5 percent of the portfolio may be invested in the securities of any one issuer, regardless of security type; except for U.S. Treasuries, federal agencies, supranational, and pooled investments such as LAIF, money market funds, and local government investment pools. 554

The City Council acknowledges that from time to time certain situations may arise during which strict adherence to an inflexible investment policy may be overly restrictive. On a case by case basis, the City Council may consider any pertinent information of such situations and may, by minute action, modify or waive, within the constraints of CGC §53601 et seq., any of the provisions and/or restrictions of this Investment Policy.

The CFO shall periodically establish diversification guidelines, within the context of this policy, and strategies to control any risks of default, market price changes, and illiquidity.

14.0 TRADING OF SECURITIES

A trade is the movement from one security to another and may be done for a variety of reasons, such as to increase yield, lengthen or shorten maturities, to take a profit, or to increase investment quality.

The purchase and sale transaction and the sale transaction must each be recorded separately and any losses or gains on the sale must be recorded.

The CFO may obtain competitive bids from at least two brokers or financial institutions on all purchases based on investment analysis recommended by staff about the investment policy guidelines. Competitive bids can be also obtained by other communication channels when necessary.

If the City has contracted with an investment advisor to provide investment service, the trading of the funds managed by the investment advisor will be performed by the investment advisor based on their established policies and procedure to evaluate and monitor the firms’ credit worthiness, as well as their ability to perform the duties necessary for efficient trade execution. All trading activity conducted by the investm ent advisor shall be made in accordance with this Investment Policy and any written directions provided by the CFO.

15.0 MAXIMUM MATURITIES
Where no maturity limit is stated for an investment under Section 8.0, no investment shall be made in any security that at the time of the investment, has a remaining term to maturity of more than five years unless the City Council has granted express auth ority to make that investment either specifically or as part of a previous investment program, no less than three (3) months prior to the investment. Any investment currently held at the time the investment policy is adopted which does not meet the new pol icy guidelines may be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation such funds shall be reinvested only as provided in the most current policy.

16.0 PORTFOLIO MATURITY LIMITATION
The weighted average maturity of the entire portfolio shall not exceed three (3) years. 555

17.0 MONITORING CREDIT RATINGS

The CFO or the investment advisor shall monitor the ratings of all investments in their portfolios on a continuous basis. If an existing investment’s rating drops below the minimum credit rating required for new investments made pursuant to this Investment Policy, the CFO will make a decision as to whether this security should be held or sold prior to maturity and will report to the City Council.

18.0 REPORTING
Within 45 days of the end of each month, the CFO shall submit to the City Council a monthly investme nt report. At the end of each quarter, the report is presented at the Finance and Governance Committee meeting. This report will include the elements of the quarterly report as recommended by CGC §53646, to include:
a. Type of investment
b. Name of institution
c. Date of maturity
d. Amount of deposit or cost of the security and the par value e. Current market value of all securities
f. Rate of interest/earnings (yield)
g. A monthly list of transactions

CGC §53646(b)(2), (3) recommends that the investment report must include a statement that (i) all investment actions executed since the last investment report have been made in full compliance with the Investment Policy or a City Council's minute action (wavier) and, that (ii) the City will meet its expendit ure obligations for the next six months. The CFO shall maintain a complete and timely record of all investment transactions in support of the above statement.

19.0 INTERNAL CONTROLS

The CFO is responsible for establishing and maintaining a control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation and benefits require estimates and judgments by management.

An annual independent review, or as needed to address recommended changes, by an external auditor to assure compliance with policies and procedures will be performed as part of the City’s annual audit.

20.0 PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. To determine whether market rate of return is being achieved, the CFO shall identify comparable benchmark(s) to the portfolio investment duration, (e.g., 90-day US Treasury Bill, 6- month US Treasury Bill, average LAIF yield rate).

If the City has contracted with an investment advisor to provide investment service, the investment performance of the managed funds shall be evaluated and compared to an appropriate benchmark to assess the success of the investment program relative to the City’s safety, liquidity, and return objectives.

This comparative analysis is included in the investment report presented to the City Council quarterly.

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21.0 POLICY REVIEW
This Investment Policy shall be reviewed regularly to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return and its relevance to current law and financial and economic trends. The City Council shall be responsible for maintaining guidance over this Investment Policy to ensure that the City can adapt readily to changing market conditions and approve any modification to the Investment Policy prior to implementation.

22.0 STATE LAW
It is the policy of the City to comply with the State laws governing its investments.

23.0 INVESTMENT POLICY ADOPTION

The Investment Policy shall be adopted by resolution of the City Council of the City of Oxnard. Moreover, the Policy shall be reviewed whenever there are recommended changes or annually, whichever occurs first, and modifications must be approved by the City Council. 557

APPENDIX: GLOSSARY OF CASH MANAGEMENT & INVESTMENT TERMS BOND PROCEEDS:

The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These monies are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BROKER:

A broker acts as an intermediary between a buyer and seller for a commission and does not trade for his/her own risk and account or inventory.

CERTIFICATE OF DEPOSIT (CD):

A time deposit with a specific maturity evidenced by a
certificate.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY
SYSTEM (CDARS):

A private CD placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is cur rently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL:

Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMMERCIAL PAPER:

A short-term, unsecured, promissory note with a fixed maturity of no more than 270 days. By statute, these issues are exempt from registration with the U.S. Securities and Exchange Commission.

CREDIT RISK:

The risk to an investor that an issuer will default in the payment of interest and/or principal on a security and a loss will result.

CUSTODIAN:

A bank or other financial institution that keeps custody of stock certificates and other assets.

DEALER:

A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own risk and account or inventory.

DELIVERY OF SECURITIES:

There are two methods of delivery of securities ;
Delivery versus Payment and Delivery versus Receip t.

Delivery versus payment is delivery of securities wit h an exchange of money for the securities. Delivery
versus receipt is delivery of securities with an
exchange of signed receipt for the securities.

DIVERSIFICATION:

Dividing investment funds among a variety of securities offering independent returns.

DURATION:

A measure of the timing of the cash flows to be received from a given -fixed income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a
useful indicator of its price volatility for given changes in interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION
(FDIC): A
federal agency that insures bank deposits.

FINANCIAL INDUSTRY REGULATORY AUTHORITY
(FINRA):

The Financial Industry Regulatory Authority (FINRA) is
the largest independent regulator for all securities
firms doing business in the United States. All told,
FINRA oversees over 4,200 brokerage firms, about
162,000 branch offices and approximately 634,000
registered securities representatives.

INTEREST ONLY STRIPS:

The interest portion of a Treasury note or bond that
has been stripped of its principal component through
the commercial book-entry system.

INTEREST RATE RISK:

The risk of gain or loss in market values of securities due to changes in interest -rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.

INVERSE FLOATER:

Fixed income instruments whose coupon or interest rate
is periodically reset according to a short-term rate index such as LIBOR, or prime rate. Unlike the traditional
floating rate instrument, however, the inverse floater’s rate is set equal to a fixed rate minus the short-term rate index.

INVESTMENT POLICY:

A clear and concise statement of the objectives and
parameters formulated by an investor or investment
manager for a portfolio of investment securities.
558

INVESTMENT PORTFOLIO:

A collection of securities held by a bank, individual, institution, or government agency for investment purposes.

LIQUIDITY:

The measure of an asset’s ability to be converted easily and rapidly into cash with minimum risk on principal.

LOCAL AGENCY INVESTMENT FUND (LAIF):

An investment pool managed by the California State Treasurer.

Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for
investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.

MARKET VALUE:

The price at which a security is currently being sold in the market.

See FAIR VALUE.

MASTER REPURCHASE AGREEMENT:

A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each party’s rights in the
transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller - borrower.

MATURITY:

The date that the principal or stated value of a debt instrument becomes due and payable.

MEDIUM-TERM NOTES (MTNs):

Corporate notes, having any or of the features of corporate bonds and ranging in maturity from nine months out to thirty years. The difference between corporate bonds and MTNs is that corporate bonds are underwritten.

NATIONALLY RECOGNIZED STATISTICAL RATING
ORGANIZATION (NRSRO):

A rating organization designated by the SEC as being nationally recognized, such as Moody's Investor Service, Inc.(Moody’s), Standard & Poor’s (S&P), and Fitch Ratings (Fitch).

NEGOTIABLE CERTIFICATES OF DEPOSIT:

Time deposits issued by Federal Deposit Insurance
Corporation (FDIC) insured banks and are underwritten by the Financial Industry Regulatory Authority (FINRA) registered Broker/Dealers. Also known as “DTC Eligible CDs” or
“Brokered Deposits”, this type o f deposit is offered to investors by issuing institutions looking to raise liquidity and funding through the wholesale and institutional markets.

PAR VALUE:

The amount of principal that must be paid at maturity.

Also referred to as the face amount of a bon d, normally quoted in increments of $1,000 per bond.

PRIMARY DEALER:

A group of government securities dealers who submit
daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission
(SEC)- registered securities broker/dealers, banks and a few unregulated firms.

PRINCIPAL:

The face or par value of a debt instrument or the amount of capital invested in a security.

PRUDENT INVESTMENT STANDARD:

The way a prudent person of discretion and intelligence would be expected to manage the investment program in
seeking a reasonable income and preservation of capital.

RANGE NOTES:

Securities that accrue interest during an interest period at a fixed or variable rate if a specified index is within a specified range during a designated period or at a point in time. A Range Note may not bear interest if the specified index is outside the specified range.

RATE OF RETURN:
1) The yield which can be attained on a security based
on its purchase price or its current market price.
2) Income earned on an investment, expressed
as a percentage of the cost of the
investment.

REPURCHASE AGREEMENT (RP OR REPO):

A holder of securities (e.g. investment dealer) sells
these securities to an investor (e.g. the City) with an agreement to repurchase them at a fixed date. The
security “buyer” (e.g. the City) in effect lends the
“seller” money for the period of the agreement, and the terms of the agreement are structured to compensate
the “buyer” for this. Dealers use RP extensively to
finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing
bank reserves.

REVERSE REPURCHASE AGREEMENT
(REVERSE REPO):

A counter party (e.g. investment dealer) buys the
securities from the holder of securities (e.g. the City) with an agreement to sell them back at a fixed date.

The counter party in ef fect lends the seller (e.g. the City) money for the period of the agreement with terms
of the agreement structured to compensate the buyer.
559

SAFEKEEPING:

A service banks offer to clients for a fee, where physical securities are held in the bank’s vault for protection and book - entry securities are on record with the Federal Reserve Bank or Depository Trust Company in the bank’s name for the benefit of the client. As agent for the client, the safekeeping bank settles securities transactions, collects coupon payments, and redeems securities at maturity or, if called, on the call date.

SECURITIES:

Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness of equity.

SECURITIES AND EXCHANGE COMMISSION (SEC):

Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SECONDARY MARKET:

A market for the repurchase and resale of outstanding issues following the initial distribution.

SUPRANATIONALS:

International organizations whereby member states
transcend national boundaries or interests to share in
the decision -making process and vote on issues
pertaining to the wider grouping.

TOTAL RETURN:

Total return, when measuring performance, is the
actual rate of return of an investment or a pool of
investments over a given evaluation period. Total
return includes interest, capital gains, dividends and
distributions realized over a given period.

TREASURY SECURITIES:

Securities issued as direct obligations of the U.S.

Government and backed by the full faith and credit of
the federal government.

WEIGHTED AVERAGE MATURITY (WAM):

The average maturity of all the securities that
comprise a portfolio, typically expressed in days of
years.

YIELD:

The annual rate of return on an investment expressed
as a percentage of the investment. Income yield is
obtained by dividing the current dollar income by the
current market price for the security.
560

Exhibit A

City of Oxnard

OFFICE OF THE CHIEF FINANCIAL OFFICER

INVESTMENT ADVISOR

● NONE
561

Exhibit B

City of Oxnard

OFFICE OF THE CHIEF FINANCIAL OFFICER
Authorized Brokers/Dealers

The following Broker/Dealers are authorized in accordance with the City’s Investment Policy:

1. Alamo Capital

2. Multi-Bank Securities

3. Piper Sandler

4. Robert Baird

5. Stifel

6. Union Banc

7. Wells Fargo

8. Falcon Square

9. Federated Homes

10. Mischler Financial Group

11. Zion

12. Great Pacific Securities

13. Oppenheimer

562

563

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.1

DATE: December 19, 2023

TO: City Council

FROM: Phillip Molina, City Treasurer, (805) 385-7808, [email protected]

SUBJECT: City Treasurer's annual investment policy for the period ending July 2024. (10 minutes)

RECOMMENDATION

That the City Council adopt a resolution adopting the FY 2023-24 investment policy for the City of Oxnard.

(This item did not originate in Committee.)

Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/SoqZj8taW9c

BACKGROUND

DISCUSSION

This annual investment Policy is intended to provide directions for the prudent investment of surplus funds of the City of Oxnard and to outline the policies for maximizing the efficiency of the City’s cash management system. To do so requires the timely cash flow statements from the Finance Department.

It is the policy of the City to invest public funds in a manner that will provide high investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all State, statutes governing the investment of public funds, and proper accounting as defined in GASB (Government Accounting Standards Board) Nos. 30 and 41. The references to the City Treasurer shall include his or her designee. This policy does not include retirement, retiree health care savings/trust/plan(s), nor deferred compensation plans, nor proceeds of bonds, nor Successor Agency funds.

This investment policy applies to the City’s pooled investment fund, which includes the General Fund, special revenue funds, capital project funds, enterprise funds, trust and agency funds, and internal service funds. While this policy is generally applicable to bond proceeds with consideration given to specific provisions, the City Attorney has determined bond proceeds of each issuance are invested by another city staff and not the elected City Treasurer. Reports of the investment of bond proceeds are issued monthly by the trustee.

STRATEGIC PRIORITIES

This agenda item supports Economic Development strategy. The purpose of Economic Development strategy is to focus on the retention and expansion of Oxnard businesses by increasing the skills and employability of our local workforce, invite new business investments, and target site-based redevelopment opportunities.

FINANCIAL IMPACT

There is no financial impact.
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COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Phillip Molina, City Treasurer

ATTACHMENTS

1. 2022-2023 Investment Policy

2. City of Oxnard 2022-23 Investment Policy

3. California 2023-24 Investment Policy

4. City of Oxnard California 2023-24 Investment Policy

5. Treasurer investment Policy FY 23-24 Resolution

6. Presentation

347
565
City of Oxnard, California
2022-23 Investment Policy
Adopted December 2023
This annual investment Policy is intended to provide direcƟons for the prudent investment of surplus funds of the City of Oxnard and to outline the policies for maximizing the eĸciency of the City’s cash management system. To do so requires the Ɵmely cash Ňow statements from the Finance Department.

It is the policy of the City to invest public funds in a manner that will provide high investment return with the maximum security while meeƟng the daily cash Ňow demands of the enƟty and conforming to all State, statutes governing the investment of public funds, and proper accounƟng as deĮned in GASB (Government AccounƟn g S t a n d a r d s B o a r d ) N o s . 3 0 a n d 4 1 . T h e r e f e r e n c e s t o t h e C i t y T r e a s u r e r s h a l l include his or her deputy. This policy does not include re Ɵrement, re Ɵree health care savings/trust/plan(s), nor deferred compensaƟon plans, nor proceeds of bonds, nor Successor Agency funds.

This investment policy applies to the City’s pooled investment fund, which includes the General Fund, special revenue funds, capital project funds, enterprise funds, trust and agency funds, and internal service funds. While this policy is generally applicable to bond proceeds with consideraƟon given to speciĮc provisions, the City AƩorney has determined bond proceeds of each issuance are invested by another city staī and not the elected City Treasurer. Reports of the investment of bond proceeds are separately issued monthly by the trustee.

This statement is intended to provide guidelines for the prudent investment of surplus funds of the City o f O x n a r d a n d t o o u t l i n e t h e p o l i c i e s f o r m a x i m i z i n g t h e eĸciency of the City’s cash management system. It is the policy of the City to invest public funds in a manner that will provide high investment return with the maximum security while meeƟng the daily cash Ňow demands of the en Ɵty and conforming to all State and local statutes governing the investment of public funds. The references to the City Treasurer shall include his or her designee. This policy does not include reƟrement, reƟree health care savings/trust/plan(s) or deferred compensaƟon plans.

3.0 PRUDENCE- Reference Ca. Govt. Code 53600.3 Investments shall be made with judgment and care – under circumstances then prevailing – which persons of prudence, discreƟon, and intelligence exercise in the management of their own aīairs, not for speculaƟon, but for the investment, considering the probable safety of their capital as well as the probable income to be derived.

The standard of prudence to be used by City oĸcials responsible for the investment of public funds shall be the “prudent investor” standard and shall be applied in the context of managing the overall City porƞolio of funds. Investment oĸcers acƟng in accordance with wriƩen procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual’s security risk or market price changes, provided deviaƟons from expectaƟons are reported in a Ɵ mely fashion and
appropriate acƟon is taken to control adverse developments. 348
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4.0 INVESTMENT OBJECTIVES T h e C i t y ’ s c a s h m a n a g e m e n t s y s t e m i s d e s i g n e d t o a c c u r a t e l y m o n i t o r a n d forecast revenues and expenditures thus enabling the City Treasurer to invest funds to the fullest extent possible. The City Treasurer maintains a diversiĮed investment porƞolio to accomplish the primary objecƟves of safety, liquidity, and yield (in that order of priority).

S a f e t y – T h e s a f e t y o r r i s k a s s o c i a t e d w i t h a n i n v e s t m e n t r e f e r s t o t h e p o t e nƟal loss of principal, accrued i n t e r e s t , o r a c o m b i n aƟon of these. The City seeks to mi Ɵgate credit risk by prequalifying and conƟnuously monitoring Įnancial insƟtuƟons with which it will do business and by scruƟny of the credit w o r t h i n e s s o f t h e i n v e s t m e n t i n s t r u m e n t s a s w e l l a s t h e i n sƟtuƟons. Such resources as FDIC bank raƟngs, Sheshunoī, Fitch, Moody’s and Standard and Poor’s raƟng services may be uƟlized for this review. The City seeks to miƟgate interest rate risk through diversiĮcaƟon of instruments as well as maturiƟes.

Liquidity – The City investment porƞolio will be structured with suĸcient liquidity to allow the City to m e e t i t s a nƟcipated cash requirements. This will be accomplished through diversity of instruments to include those with acƟve secondary markets, those which match maturiƟes to expected cash needs and the State Local Agency Investment Fund (LAIF) with immediate withdrawal provisions.

Yield – A compeƟƟv e m a r k e t r a t e o f r e t u r n i s t h e t h i r d o b j e cƟve of the City investment program aŌer the fundamental requirements of safety and liquidity have been met.

5.0 DELEGATION OF AUTHORITY California Government Code SecƟon 53607 provides the authority for the legislaƟve body of the local agency to invest the funds of the local agency or to delegate that authority to the treasurer of the local agency. EīecƟve January 1, 1997, such delegaƟon is to be reviewed annually and may be renewed by the City Council (Appendix 3, SecƟon 53607).

City Council – Under City of Oxnard ResoluƟon No. 10455, the City Council has authorized the City Treasurer to invest City funds in accordance with California Government Code SecƟon 53600, et. seq.

The City Treasurer will include review of the delegaƟon of authority in the annual presenta Ɵon of the
investment policy to the City Council.

City Treasurer – The execuƟon of investment transacƟons on a daily basis will be conducted by the City Treasurer. The Assistant City Treasurer will execute transacƟons only as directed by the City Treasurer in the absence of the City Treasurer. The City Treasurer has established a system of controls and a segregaƟon of responsibiliƟes of investment funcƟons to assure maintenance of internal control over the investment funcƟon. The City Treasurer may propose amendments to the City’s investment policy, guidelines, and procedures at any Ɵme to carry out the duƟes as chief investment oĸcer for the City.

Such amendments shall be reviewed by the City’s Investment Review CommiƩee and considered by the City Council at a public meeƟng.

6.0 ETHICS AND AVOIDANCE OF CONFLICTS OF INTEREST Investment oĸcials shall refrain from personal business acƟvity that could con Ňict with proper execuƟon and management of the policy and the investment program, or which could impair their ability to make imparƟal decisions. Investment oĸcials must provide a public disclosure document by February 1 of each year or when material interest in Įnancial insƟtuƟons or personal investment posiƟon(s) require it. Furthermore, investment oĸcials must refrain from undertaking personal investment transacƟons with the same individual(s) employed by the Įnancial insƟtuƟon with whom business is conducted on behalf of the City. The City Treasurer is governed by the PoliƟcal Reform Act of 1974 regarding disclosure of material Įnancial interests. 2 349
567

7.0 CA Govt. Code 53601.5 The City Treasurer shall transact business only with the banks, savings and loan and properly registered securiƟes dealers.

AuthorizaƟon – The City may conduct business with major registered securiƟes broker-dealers and with dealers designated “Primary” by the Federal Reserve provided all the following criteria are met. The Treasurer or his or her designee will maintain a list of approved Įnancial insƟtuƟons authorized to provide investment services to the public agency in the State of California. These may include “primary” dealers or regional dealers that qualify under SecuriƟes & Exchange Commission Rule 15C3-1 (uniform net capital rule). Broker-dealers must:
a. Have oĸces located within the State of California;
b. Be adequately capitalized;
c. Make markets in securiƟes appropriate to the City’s needs; d. Agree to abide by the condiƟons set forth in the City’s investment policy; The City Treasurer shall invesƟgate all insƟtuƟons which wish to do business with the City and shall require that each Įnancial insƟtuƟon complete and return the appropriate quesƟonnaire and required documentaƟon. An annual review of the Įnancial condiƟon and registraƟon of qualiĮed bidders will be conducted by the City Treasurer.

No public deposit shall be made except in a qualiĮed public depository as established by the established State laws. All Įnancial insƟtuƟons and broker/dealers who desire to conduct investment transacƟons with the public agency must supply the Treasurer (or Chief Financial Oĸcer) with the following: audited Įnancial statements, proof of NASD cer ƟĮcaƟon, trading resolu Ɵon, proof of State of California registraƟon, completed broker/dealer quesƟonnaire, cerƟĮcaƟon of having read the Public Agency’s investment policy and depository contracts.

RaƟngs – With the excep Ɵon of the Local Agency Investment Fund (LAIF) and U.S. Treasury and Government Agency issues, investments shall be placed only in those instruments and insƟ tuƟons rated
favorably as determined by the City Treasurer with the assistance of bank raƟng services and naƟonally recognized raƟng services (FDIC, Fitch’s, Moody's, Standard & Poor's, Sheshunoī performance raƟng, etc.).

8.0 AUTHORIZED AND SUITABLE INVESTMENTS
California Government Code SecƟon 53601 (Appendix 3) deĮnes eligible securiƟes for the investment of surplus funds by local agencies. Surplus funds of the City of Oxnard are invested in compliance with this statute and as further limited in this Investment Policy.

U.S. Government - United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitaƟon as to the percentage of the porƞolio invested in this category. MaturiƟes are limited to a maximum of Įve years.

U.S. Agencies - The purchase of instruments of, or issued by, a federal agency or a United States government-sponsored enterprise will be limited to a maximum maturity of Įve years. Such agencies include, but are not limited to, the Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home 3 350
568
Loan Mortgage CorporaƟon, Student Loan MarkeƟng AssociaƟon, Tennessee Valley Authority, and the Federal NaƟonal Mortgage CorporaƟon.

Municipal Bonds, Notes or Evidences of lndebtedness - Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. Registered State warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this State include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 15 percent of the porƞolio may be so invested.

Bankers’ Acceptances - Bills of exchange or Ɵme draŌs drawn on and accepted by commercial banks which are eligible for purchase by the Federal Reserve System are known as bankers’ acceptances.

Purchases of these instruments may not exceed 180 days to maturity or 40 percent of an agency's surplus funds. A maximum of 30 percent may be invested in the bankers’ acceptances of any one commercial bank.

Commercial Paper - This short-term unsecured promissory note is issued to Įnance short term credit needs. Eligible paper is that which is ranked "Pl" by Moody's Investor Services or "Al" by Standard & P o o r ' s o r F i t c h ’ s , i s s u e d b y a d o m e sƟc corporaƟon having assets in excess of $500,000,000, and having an "A" or beƩer raƟng on issuer's debt. Purchases of commercial paper may not exceed 270 days or represent more than 10 percent of the outstanding paper of an issuing corporaƟon. Commercial paper purchases will be limited to 15 percent of the City's porƞolio.

NegoƟable CerƟĮcates of Deposit (NCDs) - Allowable NCDs are issued by a naƟonally or State-chartered bank or a State or federal associaƟon or by a State-licensed branch of a foreign bank. The City Treasurer may invest up to 30 percent of surplus funds in NCDs limited to insƟtuƟons rated "Aa" or beƩer by Moody's or "AA-" or beƩer by Standard & Poor's CD RaƟng Services. A raƟng equivalent to FDIC raƟng of “One” or “Two” or a Sheshunoī performance raƟng of A or beƩer is required for those insƟtuƟons not rated by Moody's, Fitch’s or Standard & Poor's. NCDs are considered liquid, trading acƟvely in the secondary market.

CerƟĮcates of Deposit (CDs) - CerƟĮcates of deposit or "Ɵme deposits" of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing insƟtuƟon. The value of the investment must have collateral of at least 110 percent if government securiƟ
es, or collateral of at least 150 percent if mortgage-backed securiƟes. Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 30 percent o f t h e p o rƞolio (GC 53601(i)). In addiƟon, Ɵme deposits shall be placed in insƟtuƟons meeƟng all capital requirements and which maintain a raƟng equivalent to FDIC raƟng of “One” or “Two” or a Sheshunoī performance raƟng of A or beƩer.

Repurchase Agreements - The City may invest in repurchase agreements with banks and dealers of p r i m a r y d e a l e r s t a t u s r e c o g n i z e d b y t h e F e d e r a l R e s e r v e w i t h w h i c h t h e C i t y h a s e n t e r e d i n t o a m a s t e r repurchase contract which speciĮes terms and condiƟons of repurchase agreements. The maturity of 4 351
569
repurchase agreements shall not exceed 90 days. The market value of securiƟes used as collateral for repurchase agreements shall be monitored by the City Treasurer's oĸce and will not be allowed to fall below 102 percent of the value of the repurchase agreement. To conform with provisions of the Federal Bankruptcy Code, which provide for the liquidaƟon of securiƟes held as collateral for repurchase agreements, the only securiƟes acceptable as collateral shall be eligible nego Ɵable cerƟĮcates of deposit, bankers' acceptances, commercial paper, or securiƟes that are direct obligaƟons of or that are fully guaranteed by the United States or any agency of the United States. These eligible securiƟes are further deĮned by California Government Code SecƟon 53651.

M e d i u m T e r m N o t e s - A m a x i m u m o f 3 0 p e r c e n t o f t h e C i t y ' s p o rƞolio may be invested in medium-term notes issued by corporaƟons organized and operaƟng within the United States. Note maturiƟes may not exceed Įve years. SecuriƟes eligible for investment must be rated in a raƟn g c a t e g o r y o f " A " o r i t s equivalent or beƩer by a naƟonally recognized raƟng service (i.e., Moody's or Standard & Poor's).

Mutual Funds - Shares of beneĮcial interest (mutual funds) issued by diversiĮed management companies invesƟng in securiƟes/obligaƟons authorized by California Government Code SecƟon 53600, et. seq., and complying with Sec Ɵon 53601, are permi Ʃed investments. Sec Ɵon 53601(l) further de Įnes requirements. A maximum of 20 percent of the porƞolio may be so invested.

Local, State, or County Agency Investment Fund - The Local Agency Investment Fund (LAIF) has been established by the State Treasurer for the beneĮt o f l o c a l a g e n c i e s . T h e C i t y m a y i n v e s t u p t o t h e maximum permiƩed by LAIF and the Ventura County Investment Pool operated under the control of the County Treasurer, and CALTRUST consistent with California Government Code SecƟon 53635.

Ineligible Investments - Investments not described herein, including but not limited to common stocks and Įnancial futures contracts and opƟons, are prohibited in this fund.

City Inter-fund Loans - Funds may be invested in loans to provide speciĮc funding to City programs, provided no loan shall violate any limitaƟons prescribed by California law. Legal requirements shall include but not be limited to those listed in Government Code secƟon 66006(b)(1)(G) for development impact fees and in Government Code secƟon 66013(d)(5) for water connecƟon, sewer connecƟon and capacity charge fees.

9.0 COLLATERAL The issue of collateral requirements is addressed in California Government Code SecƟon 53652. All acƟve and inacƟve deposits must be secured at all Ɵmes with eligible securiƟes in securiƟes pools pursuant to SecƟons 53656 and 53657. Eligible securiƟes held as collateral shall have a market value in excess of the total amount of all deposits of a depository as follows:

Government securiƟes, at least 10 percent in excess
mortgage-backed securiƟes, at least 50 percent in excess leƩers of credit, at least 5 percent in excess.

FDIC coverage as the Oĸcial Custodian of a public unit is insured up to $250,000 per bank and all acƟve and inacƟve deposits above the FDIC insured amount must be collateralized to be secured.

10.0 INVESTMENT POOLS/MUTUAL FUNDS
A thorough invesƟgaƟon of the pool/fund is required prior to invesƟng, and on a conƟnual basis. There shall be a quesƟonnaire developed which will answer the following general quesƟons:
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a) A descripƟon of eligible investment securiƟes, and a wriƩen statement of investment policy and objecƟves. b) A descripƟon of interest calculaƟons and how it is distributed, and how gains and losses are treated. c) A descripƟon of how the securiƟes are safeguarded (including the seƩlement processes), and how oŌen the securiƟes are priced and the program audited. d) A descripƟon of who may invest in the program, how oŌen, what size deposit and withdrawal are allowed. e) A schedule for receiving statements and porƞolio lisƟngs. f) Are reserves, retained earnings, etc. uƟlized by the pool/fund? g) A fee schedule, and when and how is it assessed. h) Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

11.0 DIVERSIFICATION
T h e C i t y ' s p o rƞolio will be suitably diversiĮed by type and insƟtuƟon to reduce porƞolio risk while aƩaining market average rates.

Security Type and InsƟtuƟon - U.S. Treasury securiƟes and authorized pools, and any porƞolio or insƟtuƟonal limits shall comply with California Government Code. Investments are further limited by speciĮc language relaƟng to each investment type as stated in SecƟon 8 of this Policy.

Maximum MaturiƟes - To the extent possible, the City Treasurer will aƩempt to match investments with anƟcipated cash Ňow requirements. The City's porƞolio will not be directly invested in securiƟes which mature more than Įve years from the date of purchase. Reserve funds may be invested in securiƟes exceeding the Įve years as allowed by California Law (maturity of such investments should coincide as nearly as pracƟcable with expected use of funds).

12.0 INTERNAL CONTROLS
A system of internal controls will be maintained to assure compliance with Federal and State regulaƟons, City Council direcƟon, and prudent cash management procedures.

Investment Review CommiƩee - The City Treasurer and/or the Mayor shall form the investment commiƩee, whose members may include the Mayor, Councilmembers, City Manager, and Finance Director, or their designated alternates plus members of the public whose interest and knowledge can provide sound advice to the Investment Review CommiƩee tasked with quarterly review of procedures and adherence to this Investment Policy.

Investment Porƞolio Guidelines - Guidelines (Appendix No. 2) have been established for procedures within the City Treasurer's O ĸc e t o a s s u r e i n t e r n a l i n v e s t m e n t c o n t r o l s a n d a s e g r e g aƟon of responsibiliƟes of investment funcƟons.

Annual Audit - The City's porƞolio is included in the annual review of the City's Įnancial management performed by an independent (as deĮned by FASB and GASB) outside audit Įrm.

13.0 PERFORMANCE STANDARDS
T h e i n v e s t m e n t p o rƞolio will be designed to aƩain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitaƟons as deĮned herein and prudent investment principles, the Treasurer shall seek to augment returns above the market average rate of return as shown on the average CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the porƞolio. In addiƟon, the City porƞolio will 6 353
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be compared with LAIF and the goal is to maintain a higher posiƟve annual yield than LAIF's annual yield.

14.0 REPORTING-Reference: CA Govt. Code 53646(b )
The City Treasurer shall provide investment informaƟon to City Council.

Periodic Reports - The City Treasurer will provide detailed reports of the investments in the pooled investment fund porƞolio on a monthly basis to the City Council, City Manager, Chief Financial Oĸcer, and City Clerk. Within thirty days of the end of each quarter, these reports will be provided with addiƟonal informaƟon such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested on all securiƟes, investments and moneys held by the local agency, and shall addiƟonally include a descripƟon of any of the local agency’s funds, investments, or programs, that are under the management of contracted parƟes, including lending programs. With r e s p e c t t o a l l s e c u r iƟes held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuaƟon.

Annual Report - This Investment Policy will be presented annually following the close of the Įscal year, to the City Council for approval. Financial Statements per GASB #31 - City Treasurer will provide the porƞolio's market value gains/losses to Finance to be incorporated in the Įscal year-end balance sheet.

Financial Statements per GASB #40 - EīecƟve June 30, 2005, addiƟonal disclosure is required. City Treasurer will provide detailed maturity and raƟng informaƟon to Finance to be incorporated in the Comprehensive Annual Financial Report (CAFR).

15.0 SAFEKEEPING AND CUSTODY –Reference: CA Govt. Code 53608 All security transacƟons, including collateral for repurchase agreements, entered into by the City Treasurer shall be conducted on a delivery-versus-payment (DVP) basis. SecuriƟes will be held by a third-party custodian designated by the Treasurer and evidenced by safekeeping receipts.

16.0 INVESTMENT POLICY ADOPTION –Reference: CA Govt. Code 53646 T h e C i t y o f O x n a r d ’ s i n v e s t m e n t p o l i c y s h a l l b e a d o p t e d b y r e s o l uƟon of the City Council. The policy shall be reviewed annually by the City Council and any modiĮcaƟons made thereto by the City Treasurer must be presented to the City Council. The City Treasurer shall establish wriƩen investment policy procedures for the operaƟon of the investment program consistent with this policy. The procedures should include reference to: safekeeping, master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegaƟon of authority to persons responsible for investment transacƟons. No person, or oĸcer may engage in an investment transacƟon except as provided under the terms of this policy and the procedures established by the City of Oxnard.

APPENDIX
a) No. 1 Glossary
b) No. 2 Investment Porƞolio Guidelines
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c) No. 3 California Government Code SecƟons related to Investment of Public Funds City of Oxnard,
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City of Oxnard, California
2022-23 Investment Policy
Adopted November 30, 2024
APPENDIX NO. 2: OXNARD CITY TREASURER INVESTMENT PORTFOLIO GUIDELINES A. INTRODUCTION. These guidelines are established to direct and control investment acƟviƟes in such a manner to assure that the goals established in the Investment Policy are aƩained. B. GENERAL FACTORS.

Several factors must be considered in preparaƟon for eīecƟve porƞolio management. 1 . C a s h F o r e c a s t . T h e c a s h Ňow of the City shall be updated daily with an analysis of cash receipts and expenditures. A close working relaƟonship with City Departments having a signiĮcant impact on cash Ňow is maintained to maximize the eĸciency of the City's cash management system.

2. Pooled Cash. Whenever pracƟcal, the City's cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated according to speciĮc general ledger cash balances. No City bank account may be opened without the knowledge and consent of the City Treasurer.

3. Authorized InsƟtuƟons. A list of insƟtuƟons, which meet the criteria of the Investment Policy and have been authorized by the City Treasurer to do business with the City, will be maintained and regularly updated. Investment transacƟons will be executed only with approved broker/dealers, banks, and savings and loans.

4. PreservaƟon of Porƞolio Value. Yield standards are in place in an eīort to maintain earnings consistent with the market average rate of return.
5 . G o l d e n R u l e o f P o rƞolio Management. Investment instrument characterisƟcs should be known and understood before a purchase of the investment instrument. And recognizing that there are no Įrm and steadfast rules (strategies) for porƞolio management because investor expectaƟons change by the day, hour, and minute, and because of this market instability, prudent principles of Įscal management must be applied.

C. STRATEGY: S t r a t e g y r e f e r s t o t h e p l a n o f a cƟon for managing Įnancial resources in the most advantageous manner. The City Treasurer uses the following elements in developing strategy.

1. Economic Forecasts. Economic forecast informaƟon developed by economists and Įnancial experts, obtained through bankers and brokers, is used to assist the City Treasurer with the formulaƟon of an investment strategy for the City.

2. Investment ImplementaƟon. Investment transacƟons will be executed in conformance with anƟ
cipated cash Ňow requirements, economic condiƟons, and interest rate trends and must be consistent with the established Investment Policy.

3. Yield Enhancement. Investment techniques will be uƟlized which increase yield and maintain a fully invested posiƟon.

D. INVESTMENT PROCEDURES. The City Treasurer has developed internal investment procedures to provide for eīecƟve cash management. SegregaƟon of responsibiliƟes is maintained to assure an adequate system of internal control over the investment funcƟon. 1 356
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1. DiversiĮcaƟon. The fund should consist of a mix of various types of securiƟes, issuers, and maturiƟes.

2. CompeƟƟve Bids. Purchase and sale of securiƟes shall be made on the basis of compeƟƟve bids and oīers with a minimum of two quotes being obtained, when pracƟcal.

3. Investment TransacƟons. Investment transacƟons will be authorized by the City Treasurer. In his/her absence, the Assistant City Treasurer will execute transacƟons as prescribed by the City Treasurer prior to his/her absence. In the event of unexpected absence and unavailability by the City Treasurer, the Assistant City Treasurer will transact within established guidelines.

4. Electronic TransacƟons. Whenever possible, the City will use preformaƩed wire transfers and ACH debits to restrict the transfer of funds to preauthorized accounts only. All electronic transacƟons require an iniƟator plus an approval by an authorized employee. AuthenƟcity is veriĮed on next business day for each electronic transacƟon.

5. Safekeeping. SecuriƟes purchased from broker/dealers (on which maturity is greater than 30 days) shall be held in third party safekeeping with the Trust Department of Union Bank of California acƟng as third-party trustee. All such purchases will be on a delivery versus-payment basis. Evidence of account for cerƟĮcates of deposit will be issued in the City's name and held in City Treasurer's vault.

E. INVESTMENT CRITERIA. All investments will be made in compliance with Federal, State, and Local laws governing the investment of City funds, and in accordance with the City Treasurer's Investment Policy. 1.

Maturity of Investment. Investments longer than one year may be made if consistent with the City's cash Ňow needs, related intent to hold unƟl maturity, unless market condiƟons demand otherwise. SecuriƟes may be sold prior to maturity for cash Ňow purposes or to otherwise enhance the porƞolio. If the raƟng of any depository declines to an unacceptable level prior to the maturity of an investment of City funds, the investment will be matured at the earliest possible opportunity. If the raƟng drops below the a l l o w a b l e l e v e l o f a n y o n e o f t h e r aƟng services, the investment will be sold if no signiĮcant loss of principal is involved. Such sales will be determined by the City Treasurer. 2. CerƟĮcate of Deposit EvaluaƟon. (a) Time CerƟĮcates of Deposit shall be evaluated in terms of FDIC coverage. For deposits more than the insured maximum of $250,000, approved collateral shall be required at the percentage above market value as speciĮed by California Government Code Sec Ɵon 53652 and/or 53651. (b) NegoƟable Cer
ƟĮcates of Deposit shall be evaluated in terms of the credit worthiness of the issuer as these deposits are uninsured and uncollateralized promissory notes.

F. PRIMARY GOALS. As set forth in the Investment Policy, the primary goals for the City of Oxnard are safety, liquidity, and yield, in that priority order. 1. Safety. The safety/risk associated with an investment r e f e r s t o t h e p o t e nƟal loss of principal, accrued interest, or a combinaƟon of these. The City of Oxnard employs investment instruments considered to be safe. The primary duty of the City Treasurer is to protect the cash and investments placed in her trust on behalf of the ciƟzens of the community. 2.

Liquidity. Liquidity refers to the ability to convert investment holdings to cash immediately with no loss of principal or accrued interest. This quality of investment is important should an unexpected need for funds occur. 3. Yield. Yield is the dollar earnings the investment provides. Yield becomes important only aŌer the fundamental requirements of safety and liquidity have been met.

G. INTERNAL CONTROL OF INVESTMENTS . Investment transacƟons are controlled through distribuƟon of responsibiliƟes within the Treasurer's Oĸce by the following procedures:

1. The Treasurer iniƟates each investment transacƟon.
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2. Details of the investment are recorded on a trade slip and given to the account clerk responsible for encoding the trade details into the electronic investment system. The same account clerk produces a veriĮcaƟon leƩer mailed to the insƟtuƟo n r e c e i v i n g t h e i n v e s t m e n t . A c o p y o f t h e l eƩer is forwarded to the transferring bank.

3. The transacƟon record is then delivered to a designee who enters the transacƟon on the cash balance spread sheet.

4. At month end the balances on the spreadsheet, maintained by a designee, must balance with the porƞolio balance maintained independently by the electronic system clerk.

5. Each business day, the Treasurer's Oĸce receives an electronic report from the City's bank. This report contains checking account balances, a lisƟng of debits and credits, overnight investments, and a record of wired funds. This informaƟon is incorporated into the monthly checking account statement which provides a cross reference.

6. The Treasurer's Oĸce forwards copies of all investment and transfer leƩers to General AccounƟng daily. General Accoun Ɵng also receives copies of all bank statements, daily print-outs, bank reconciliaƟons, credit/debit memorandums, journal vouchers, and tapes coordina Ɵng Treasurer's Receipts with deposits. 7. The Treasurer's report of balances and summary of investments and earnings is compiled monthly and distributed to the City Council, City Manager, City Clerk and Chief Financial Oĸcer. A report, including market values, will be provided on a quarterly basis within 30 days of the close of the last month of each quarter. A report of porƞolio gains/losses will be provided to the Chief Financial Oĸcer at Įscal year-end for inclusion in year-end balance sheet reporƟng. These Guidelines are provided to all staī members of the City Treasurer's O ĸce being involved with the investment procedures in any way. It is intended that these guidelines deĮne the details of current pracƟce set forth by the Investment Policy.
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California 2023-24
Investment Policy
Adopted December 2023
APPENDIX NO. 1: GLOSSARY AGENCIES:

Federal agency securiƟes.

BANKERS' ACCEPTANCE (BA): A draŌ or bill or exchange accepted by a bank or trust company. The accepƟng insƟtuƟon guarantees payment of the bill, as well as the issuer.

BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %) BROKER: A broker brings buyers and sellers together for a commission paid by the iniƟator of the transacƟon or by both sides; he does not posiƟon. In the money market, brokers are acƟve in markets in which banks buy and sell money and in inter-dealer markets.

CERTIFICATE OF DEPOSIT (CD): A Ɵme deposit with a speciĮc maturity evidenced by a cerƟĮcate. Large denominaƟon CDs are typically negoƟable.

COLLATERAL: SecuriƟes, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securiƟes pledged by a bank to secure deposits of public monies.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the b o n d ' s f a c e v a l u e . ( b ) A c e rƟĮcate aƩached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker acts as a principal in all transacƟons, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securiƟes: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securiƟes with an exchange of money for the securiƟes. Delivery versus receipt is delivery of securiƟes with an exchange of a signed receipt for the securiƟes.

DISCOUNT: The diīerence between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original oīering price shortly aŌer sale also is at a discount.

DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securiƟes oīering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of insƟtuƟons and individuals, e.g., S&Ls, small business Įrms, students, farmers, farm cooperaƟves, and exporters.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market opera Ɵons.
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FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000.

FEDERAL HOME LOAN BANKS (FHLB): The insƟtuƟons that regulate and lend to savings and loan associaƟons. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal NaƟonal Mortgage AssociaƟon Act in 1938. FNMA is a federal corporaƟon working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residenƟal mortgage funds in the United States. Fannie Mae, as the corporaƟon is called, is a private stockholder-owned corporaƟon. The corporaƟon's purchases include a variety of adjustable mortgages and second loans in addiƟon to Įxed-rate mortgages. FNMA's securiƟes are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive Ɵmely payment of principal and interest.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): SecuriƟes guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associaƟons and other insƟtuƟons. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securiƟes are backed by FHA, VA or FMHM mortgages. The term “pass-throughs” is oŌen used to describe Ginnie Mae investment instruments.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substanƟal loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): Funds from local governmental units may be remiƩed to the California State Treasurer for deposit in this special fund for the purpose of investment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold at a speciĮc date.

MASTER REPURCHASE AGREEMENT: A wriƩen contract covering all future transacƟons between the parƟes to repurchase and reverse repurchase agreements that establishes each party's rights in the transacƟons. A master agreement will oŌen specify, among other things, the right of the buyer-lender to liquidate the underlying securiƟes in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

PORTFOLIO: CollecƟon of securiƟes held by an investor. PRIMARY DEALER: A group of government securiƟes dealers that submit daily reports of market ac Ɵvity and posiƟons and monthly Į nancial
statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include SecuriƟes and Exchange Commission (SEC) registered securiƟes broker-dealers, banks, and a few unregulated Įrms.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amorƟzed yield to maturity on a bond or the current income return. RATING 2 360
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AGENCIES: S&P Probably the best known of the Big Three raƟng agencies, Standard and Poor’s (S&P) is a company providing Įnancial publishing, informaƟon and media to the world’s capital markets. It is owned by the McGraw-Hill Companies. S&P also publishes stock market indices, the most well-known of which is the S&P 500. S&P’s raƟngs from the best quality borrowers to the lowest are: AAA, AA, A, BBB, BB, B, CCC, CC, C, and D. Investment grade is BBB and above. S&P uses plus and minus to add intermediate designaƟons to these raƟngs. Moody’s Moody’s started in 1909 as a publishing company, issuing railroad bond guides called Moody’s Manuals. It later expanded its coverage to municipal and commercial bonds, and is now called Moody's Investment Services. Moody’s uses the following raƟngs:

A a a , A a , A , B a a , B a , B , C a a , C a , a n d C . N u m b e r s a r e a d d e d f o r i n t e r m e d i a t e d e s i g n aƟons, such as Baa1, Baa2, etc. Investment grade is considered to be Baa and above; anything below is considered speculaƟve, or junk. Fitch Owned by a French Holding Company, Fimalac SA, Fitch operates internaƟonally and oīers Įnancial research as well as credit raƟng services. The smallest of the Big Three, Fitch uses the same raƟngs scale as S&P . ConŇicts of Interest of raƟng agencies Credit raƟngs agencies receive fees from the issuers of the securiƟes they rate. In the Ɵme leading up to the 2008 Įnancial crisis, S&P , Moody's and Fitch all gave consistently high raƟngs to mortgage-backed securiƟes created by the investment banks who were paying them. This overraƟng of risky debt instruments contributed to the Įnancial bubble and subsequent decline. Congress has proposed new regulaƟon of these agencies to increase compeƟƟon and ensure independence in this market REPURCHASE AGREEMENT (RP OR REPO): A holder of securiƟes sells these securiƟes to an investor with an agreement to repurchase them at a Įxed price on a Įxed date. The security "buyer" in eīect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to Įnance their posiƟons. ExcepƟon: When the Federal Reserve Bank is said to be doing RP , it is lending money that is, increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securiƟes and valuables of all types and descripƟons are held in the banks' vaults for protecƟon.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the iniƟal distribuƟ
on.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securiƟes transacƟons by administering securiƟes legislaƟon.

SPREAD: a) The yield or price diīerence between the bid and oīer on an issue; b) The yield or price diīerence between diīerent issues.

TREASURY BILLS: A non-interest-bearing security issued by the U.S. Treasury to Įnance the naƟonal debt.

Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term U.S. Treasury securiƟes having iniƟal maturiƟes of more than ten years. TREASURYNOTES: Intermediate term coupon bearing U.S. Treasury securiƟes having iniƟal maturiƟes of from one to ten years.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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UNIFORM NET CAPITAL RULE: SecuriƟes and Exchange Commission requirement that member Įrms as well as nonmember broker-dealers in securiƟes maintain a maximum raƟo of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital raƟo. Indebtedness covers all money owed to a Įrm, including margin loans and commitments to purchase securiƟes, one reason new public issues are spread among members of underwriƟng syndicates. Liquid capital includes cash and assets easily converted into cash.
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City of Oxnard,
California 2023-24 Investment Policy
Adopted December 2023
APPENDIX NO. 3: STATE OF CALIFORNIA GOVERNMENT CODE INVESTMENT PROVISIONS 53600.

A s u s e d i n t h i s a rƟcle, “local agency” means county, City, City and county, including a chartered City or county, school district, community college district, public district, county board of educaƟon, county superintendent of schools, or any public or municipal corporaƟon. (Amended by Stats. 1987, Ch. 887, Sec. 2.)
53600.3.

Except as provided in subdivision (a) of SecƟon 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies inves Ɵng public funds pursuant to this chapter are trustees and therefore Įduciaries subject to the prudent investor standard.

When invesƟng, reinvesƟng, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic condiƟons and the anƟcipated needs of the agency, that a prudent person acƟng in a like capacity and familiarity with those maƩers would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limita Ɵons of this sec Ɵon and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. (Amended by Stats. 1996, Ch. 749, Sec. 4. EīecƟve January 1, 1997.) 53600.5.

When invesƟng, reinvesƟng, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objecƟve of a trustee shall be to safeguard the principal of the funds under its control. The secondary objecƟve shall be to meet the liquidity needs of the depositor. The third objecƟve shall be to achieve a return on the funds under its control. (Amended by Stats. 1996, Ch. 749, Sec. 5. EīecƟve January 1, 1997.)
53600.6.

The Legislature hereby Įnds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state.

Therefore, to protect the solvency and creditworthiness of the state and all its poliƟcal subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local oĸcials and local agencies is an issue of statewide concern. (Added by Stats. 1995, Ch. 784, Sec. 13. EīecƟve January 1, 1996.)
53601.

This secƟon shall apply to a local agency that is a city, a district, or other local agency that does not pool money in deposits or investments with other local agencies, other than local agencies that have the same governing body. However, SecƟon 53635 shall apply to all local agencies that pool money in 1 363
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deposits or investments with other local agencies that have separate governing bodies. The legislaƟve body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of the local agency may invest any porƟon of the moneys that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securiƟes prescribed in this secƟon, in a negoƟable, bearer, registered, or nonregistered format, shall require delivery of the securiƟes to the local agency, including those purchased for the agency by Įnancial advisers, consultants, or managers using the agency’s funds, by book entry, physical delivery, or by third-party custodial agreement. The transfer of securiƟes to the counterparty bank’s customer book entry account may be used for book entry delivery. For purposes of this secƟon, “counterparty” means the other party to the transacƟon. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this secƟon speciĮes a percentage limitaƟon for a parƟcular category of investment, that percentage is applicable only at the date of purchase. Where this secƟon does not specify a limitaƟon on the term or remaining maturity at the Ɵme of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securiƟes lending agreement authorized by this secƟon, that at the Ɵm e o f t h e i n v e s t m e n t h a s a t e r m remaining to maturity in excess of Įve years, unless the legislaƟve body has granted express authority to make that investment either speciĮcally or as a part of an investment program approved by the legislaƟve body no less than three months prior to the investment: (a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency. (b) United States Treasury notes, bonds, bills, or cerƟĮcates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. (d) Registered treasury notes or bonds of any of the other 49 states in addiƟon to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addiƟon to California. (e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. (f) Federal agency or United States government-sponsored enterprise obligaƟons, par ƟcipaƟons, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. (g) Bankers’ acceptances otherwise known as bills of exchange or Ɵme draŌs that are drawn on and accepted by a commercial bank. Purchases of bankers’ acceptances shall not exceed 180 days’ maturity or 40 percent of the agency’s moneys that may be invested pursuant t o t h i s s e cƟo n . H o w e v e r , n o m o r e t h a n 3 0 p e r c e n t o f t h e a g e n c y ’ s m o n e y s m a y b e i n v e s t e d i n t h e bankers’ acceptances of any one commercial bank pursuant to this secƟon. This subdivision does not preclude a municipal uƟlity district from invesƟng moneys in its treasury in a manner authorized by the Municipal UƟlity District Act (Division 6 (commencing with Sec Ɵon 11501) of the Public UƟliƟes Code).
(h) Commercial paper of “prime” quality of the highest ranking or of the highest leƩer and number raƟng as provided for by a naƟonally recognized staƟsƟcal raƟng organizaƟon (NRSRO). The enƟty that issues the commercial paper shall meet all the following condiƟons in either paragraph (1) or (2): (1) The enƟty meets the following criteria: (A) Is organized and operaƟng in the United States as a general corporaƟon. 2 364
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(B) Has total assets more than Įve hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a raƟng category of “A” or its equivalent or higher by an NRSRO. (2) The enƟty meets the following criteria: (A) Is organized within the United States as a special purpose corporaƟon, trust, or limited liability company. (B) Has program wide credit enhancements including, but not limited to, overcollateralizaƟon, leƩers of credit, or a surety bond. (C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO. Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counƟes or a city and county, that have less than one hundred million dollars ($100,000,000) of investment assets under management, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counƟes or a city and county, that have one hundred million dollars ($100,000,000) or more of investment assets u n d e r m a n a g e m e n t m a y i n v e s t n o m o r e t h a n 4 0 p e r c e n t o f t h e i r m o n e y s i n e l i g i b l e c o m m e r c i a l p a p e r . A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer. CounƟes or a city and county may invest in commercial paper pursuant to the concentraƟon limits in subdivision (a) of SecƟon 53635. (i) NegoƟable cerƟĮcates of deposit issued by a naƟonally or state-chartered bank, a savings associaƟon, or a federal associaƟon (as deĮned by SecƟon 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases of negoƟable cerƟĮcates of deposit shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this secƟon. For purposes of this secƟon, negoƟable cerƟĮcates of deposit do not come within ArƟcle 2 (commencing with SecƟon 53630), except that the amount so invested shall be subject to the limitaƟons of SecƟon 53638. The legislaƟve body of a local agency and the treasurer or other oĸcial of the local agency having legal custody of the moneys are prohibited from invesƟng local agency funds, or funds in the custody of the local agency, in negoƟable cerƟĮcates of deposit issued by a state or federal credit union if a member of the legislaƟve body of the local agency, or a person with investment decision making authority in the administra Ɵve oĸce manager’s oĸce, budget oĸce, auditor-controller’s oĸce, or treasurer’s oĸce of the local agency also serves on the board of directors, o r a n y c o m m iƩee appointed by the board of directors, or the credit commiƩee or the supervisory commiƩee of the state or federal credit union issuing the negoƟable cerƟĮcates of deposit. (j) (1) Investments in repurchase agreements or reverse repurchase agreements or securi Ɵes lending agreements of securiƟes authorized by this secƟon, as long as the agreements are subject to this subdivision, including the delivery requirements speciĮed in this secƟon. (2) Investments in repurchase agreements may be made, on an investment authorized in this secƟon, when the term of the agreement does not exceed one year. The market value of securiƟes that underlie a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securiƟes and the value shall be adjusted no less than quarterly. Since the market value of the underlying securiƟes is subject to daily market ŇuctuaƟons, the investments in repurchase agreements shall be in compliance if the value of the underlying securiƟes is brought back up to 102 percent no later than the next business day. (3) Reverse repurchase agreements or securiƟes lending agreements may be uƟlized only when all the following condiƟo n s a r e m e t : ( A ) T h e s e c u r i t y t o b e s o l d u s i n g a r e v e r s e r e p u r c h a s e a g r e e m e n t o r s e c u r iƟes lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior t o s a l e . ( B ) T h e t o t a l o f a l l r e v e r s e r e p u r c h a s e a g r e e m e n t s a n d s e c u r iƟes lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the porƞolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a wriƩen codicil guaranteeing a minimum earning or spread for the enƟre period between the sale of a security using a reverse repurchase agreement or securiƟes lending agreement and the Įnal maturity date of the same 3 365
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security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securi Ɵes lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the iniƟal seƩlement date of the reverse repurchase agreement or securiƟes lending agreement, unless the reverse repurchase agreement or securiƟes lending agreement includes a wriƩen codicil guaranteeing a minimum earning or spread for the enƟre period between the sale of a security using a reverse repurchase agreement or securiƟes lending agreement and the Įnal maturity date of the same security. (4) (A) Investments in reverse repurchase agreements, securi Ɵes lending agreements, or similar investments in which the local agency sells securiƟes prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local a g e n c y a n d s h a l l b e m a d e o n l y w i t h p r i m a r y d e a l e r s o f t h e F e d e r a l R e s e r v e B a n k o f N e w Y o r k o r w i t h a naƟonally or state-chartered bank that has or has had a signiĮcant banking relaƟonship with a local agency. (B) For purposes of this chapter, “signiĮcant banking relaƟonship” means any of the following acƟviƟes of a bank: (i) Involvement in the creaƟon, sale, purchase, or reƟrement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency’s acƟviƟes. (iii) Acceptance of a local agency’s securiƟes or funds as deposits. (5) (A) “Repurchase agreement” means a purchase of securiƟes by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securiƟes on or before a speci Įed date and for a speci Įed amount and the counterparty will deliver the underlying securiƟes to the local agency by book entry, physical delivery, or by third-party custodial agreement. The transfer of underlying securiƟes to the counterparty bank’s customer book-entry account may be used for book-entry delivery. (B) “SecuriƟes,” for purposes of repurchase under this subdivision, means securiƟes of the same issuer, descripƟon, issue date, and maturity. (C) “Reverse repurchase agreement” means a sale of securiƟes by the local agency pursuant to an agreement by which the local agency will repurchase the securiƟes on or before a speciĮed date and includes other comparable agreements. (D) “SecuriƟes lending agreement” means an agreement under which a local agency agrees to transfer securiƟes to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securiƟes and the collateral are held by a third party. At the conclusion of the agreement, the securi Ɵes are transferred back to the local agency
i n r e t u r n f o r t h e c o l l a t e r a l . ( E ) F o r p u r p o s e s o f t h i s s e cƟon, the base value of the local agency’s pool porƞolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool parƟcipants, excluding any amounts obtained through selling securiƟes by way of reverse repurchase agreements, securiƟes lending agreements, or other similar borrowing methods. (F) For purposes of this secƟon, the spread is the diīerence between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. (k) Medium-term notes, deĮned as all corporate and depository insƟtuƟon debt securiƟes with a maximum remaining maturity of Įve years or less, issued by corporaƟons organized and operaƟng within the United States or by depository insƟtuƟons licensed by the United States or any state and operaƟng within the United States. Notes eligible for investment under this subdivision shall be rated in a raƟng category of “A” or its equivalent or beƩer by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this secƟon and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this secƟon. A local agency, other than a county or a city and a county, may invest no more than 10 percent of its total investment assets in the commercial paper and the medium-term notes of any single issuer. (l) (1) Shares of beneĮcial interest issued by diversiĮed management companies that invest in the securiƟes and obligaƟons as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and that comply with the investment restricƟons of this arƟcle and ArƟcle 2 (commencing with 4 366
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SecƟon 53630). However, notwithstanding these restricƟons, a counterparty to a reverse repurchase agreement or securiƟes lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company’s board of directors Įnds that the counterparty presents a minimal risk of default, and the value of the securiƟes underlying a repurchase agreement or securiƟes lending agreement may be 100 percent of the sales price if the securiƟes are marked to market daily. (2) Shares of beneĮc i a l i n t e r e s t i s s u e d b y d i v e r s iĮed management companies that are money market funds registered with the SecuriƟes and Exchange Commission under the Investment Company Act of 1940 (15 U . S . C . S e c . 8 0 a - 1 e t s e q . ) . ( 3 ) I f i n v e s t m e n t i s i n s h a r e s i s s u e d p u r s u a n t t o p a r a g r a p h ( 1 ) , t h e c o m p a n y shall have met either of the following criteria: (A) AƩained the highest ranking or the highest leƩer and numerical raƟng provided by not less than two NRSROs. (B) Retained an investment adviser registered or e x e m p t f r o m r e g i s t r aƟon with the SecuriƟes and Exchange Commission with not less than Įve years’ experience invesƟng in the securiƟes and obligaƟons authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive, and with assets under management more than Įve hundred million dollars ($500,000,000). (4) If investment is in shares issued pursuant to paragraph (2), the company shall have met either of the following criteria: (A) AƩained the highest ranking or the highest leƩer and numerical raƟng provided by not less than two NRSROs. (B) Retained an investment adviser registered or e x e m p t f r o m r e g i s t r aƟon with the SecuriƟes and Exchange Commission with not less than Įve years’ experience managing money market mutual funds with assets under management more than Įve hundred million dollars ($500,000,000). (5) The purchase price of shares of beneĮcial interest purchased pursuant to this subdivision shall not include commission that the companies may charge and shall not exceed 20 percent of the agency’s moneys that may be invested pursuant to this secƟon. However, no more than 10 percent of the agency’s funds may be invested in shares of beneĮcial interest of any one mutual fund pursuant to paragraph (1). (m) Moneys held by a trustee or Įscal agent and pledged to the payment or security of bonds or other indebtedness, or obligaƟons under a lease, installment sale, or other agreement of a local agency, or cerƟĮcates of parƟcipaƟon in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no speciĮc statutory provisions, in accordance with the ordinance, resoluƟon, indenture, or agreement of the local agency providing for the issuance. (n) Notes, bonds, or other obligaƟ
ons that are at all Ɵmes secured by a valid Įrst priority security interest in securiƟes of the types listed by SecƟon 53651 as eligible securiƟes for the purpose of securing local agency deposits having a market value at least equal to that required by SecƟon 53652 for the purpose of securing local agency deposits. The securiƟes serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not aĸliated with the issuer of the secured obligaƟon, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regula Ɵons applicable to the types of securiƟes in which the security interest is granted. (o) A mortgage passthrough security, collateralized mortgage obligaƟon, mortgage-backed or other paythrough bond, equipment lease-backed cerƟĮcate, consumer receivable passthrough cerƟĮcate, or consumer receivable-backed bond. SecuriƟes eligible for investment under this subdivision shall be rated in a raƟng category of “AA” or its equivalent or beƩer by an NRSRO and have a maximum remaining maturity of Įve years or less. Purchase of securi Ɵes authorized by this subdivision shall not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this secƟon. (p) Shares of beneĮc i a l i n t e r e s t i s s u e d b y a j o i n t p o w e r s a u t h o r i t y organized pursuant to SecƟon 6509.7 that invests in the securi Ɵes and obligaƟons authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal propor Ɵonal interest in the 5 367
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underlying pool of securiƟes owned by the joint powers authority. To be eligible under this secƟon, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: (1) The adviser is registered or exempt from registraƟon with the SecuriƟes and Exchange Commission. (2) The adviser has not less than Įve years of experience invesƟng in the securiƟes and obligaƟons authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management more than Įve hundred million dollars ($500,000,000). (q) United States dollar denominated senior unsecured unsubordinated obligaƟons issued or uncondiƟonally guaranteed by the InternaƟonal Bank for Reconstruc Ɵon and Development, Interna Ɵonal Finance Corpora Ɵon, or Inter-American Development Bank, with a maximum remaining maturity of Įve years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a raƟn g c a t e g o r y o f “ A A ” o r i t s e q u i v a l e n t o r b eƩer by an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this secƟon. (r) Commercial paper, debt securiƟes, or other obligaƟons of a public bank, as deĮned in SecƟon 57600. This secƟon shall remain in eīect only unƟl January 1, 2026, and as of that date is repealed. (Amended by Stats. 2020, Ch. 235, Sec. 2. (SB 998) EīecƟve January 1, 2021. Repealed as of January 1, 2026, by its own provisions. See later operaƟve version added by Sec. 3 of Stats. 2020, Ch. 235.)
53601.1.

The authority of a local agency to invest funds pursuant to SecƟon 53601 includes, in addiƟon thereto, authority to invest in Įnancial futures or Įnancial opƟon contracts in any of the investment categories enumerated in that secƟon. (Added by Stats. 1983, Ch. 534, Sec. 3.) 53601.2.

A s u s e d i n t h i s a rƟcle, “corporaƟon” includes a limited liability company. (Added by Stats. 2004, Ch. 118, Sec. 18. EīecƟve January 1, 2005.)
53601.5.

The purchase by a local agency of any investment authorized pursuant to SecƟ on 53601 or 53601.1, not
purchased directly from the issuer, shall be purchased either from an insƟtuƟon licensed by the state as a broker-dealer, as deĮned in SecƟon 25004 of the CorporaƟons Code, or from a member of a federally regulated securiƟes exchange, from a naƟonal or state-chartered bank, from a savings associaƟon or federal associaƟon (as de Įned by SecƟon 5102 of the Financial Code) or from a brokerage Įrm designated as a primary government dealer by the Federal Reserve bank. (Amended by Stats. 2001, Ch. 57, Sec. 2. EīecƟve January 1, 2002.)
53601.6.
(a) A local agency shall not invest any funds pursuant to this arƟcle or pursuant to ArƟcle 2 (commencing with SecƟon 53630) in inverse Ňoaters, range notes, or mortgage-derived, interest-only strips. (b) (1) Except as provided in paragraph (2), a local agency shall not invest any funds pursuant to this arƟcle or pursuant to ArƟcle 2 (commencing with SecƟon 53630) in any security that could result in zerointerest accrual if held to maturity. However, a local agency may hold prohibited instruments unƟl their maturity dates. The limitaƟon in this subdivision shall not apply to local agency investments in shares of beneĮcial i n t e r e s t i s s u e d b y d i v e r s iĮed management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) that are authorized for investment pursuant to subdivision (l) of SecƟon 53601. (2) Notwithstanding the prohibi Ɵon in paragraph (1), a local agency may invest in 6 368
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securiƟes issued by, or backed by, the United States government that could result in zero- or negaƟve-interest accrual if held to maturity, in the event of, and for the duraƟon of, a period of negaƟve market interest rates. A local agency may hold these instruments unƟl their maturity dates. (c) This secƟon shall remain in eīect only unƟl January 1, 2026, and as of that date is repealed. (Amended by Stats. 2020, Ch. 235, Sec. 4. (SB 998) EīecƟve January 1, 2021. Repealed as of January 1, 2026, by its own provisions. See later operaƟve version added by Sec. 5 of Stats. 2020, Ch. 235.) 53601.8.

Notwithstanding any other provision of this code, a local agency that has the authority under law to invest funds, at its discreƟo n , m a y i n v e s t a p o rƟon of its surplus funds in deposits at a commercial bank, savings bank, savings and loan associaƟon, or credit union that uses a private sector enƟty that assists in the placement of deposits. The following condiƟons shall apply: (a) The local agency shall choose a naƟonally or state-chartered commercial bank, savings bank, savings and loan associaƟon, or credit union in this state to invest the funds, which shall be known as the “selected” depository insƟtuƟon. (b) The selected depository insƟtuƟon may use a private sector enƟty to help place local agency deposits with one or more commercial banks, savings banks, savings and loan associaƟons, or credit unions that are in the United States and are within the network used by the private sector enƟty for this purpose. (c) The selected depository insƟtuƟon shall request that the local agency inform it of depository insƟtuƟons at which the local agency has other deposits, and the selected depository insƟtuƟon shall provide that informaƟon to the private sector enƟty. (d) Any private sector enƟty used by a selected depository insƟtuƟon to help place its local agency deposits shall maintain policies and procedures requiring all the following: (1) The full amount of each deposit placed pursuant to subdivision (b) and the interest that may accrue on each such deposit shall always be insured by the Federal Deposit Insurance CorporaƟon o r t h e N aƟonal Credit Union AdministraƟon. (2) Every depository insƟ tuƟon where funds are placed shall
be capitalized at a level that is suĸcient, and be otherwise eligible, to receive such deposits pursuant to regulaƟons of the Federal Deposit Insurance CorporaƟon or the NaƟonal Credit Union AdministraƟon, as applicable. (3) At the Ɵme of the local agency’s investment with a selected depository insƟtuƟon and no less than monthly thereaŌer, the private sector enƟty shall ensure that the local agency is provided with an inventory of all depository insƟtuƟons in which deposits have been placed on the local agency’s behalf, that are within the private sector enƟty’s network. (4) Within its network, the private sector enƟty shall ensure that it does not place addiƟonal deposits from a parƟcular local agency with any depository insƟtuƟon idenƟĮed pursuant to subdivision (c) as holding that local agency’s deposits if those addiƟonal deposits would result in that local agency’s total amount on deposit at that depository insƟtuƟon exceeding the Federal Deposit Insurance Corpora Ɵon or the Na Ɵonal Credit Union AdministraƟon insurance limit. (e) If a selected depository uses two or more private sector enƟƟes to assist in the placement of a local agency’s deposits, the selected depository shall ensure that it does not place addiƟonal deposits from a parƟcular local agency with a depository insƟtuƟon if those addiƟonal deposits would result in that local agency’s total amount on deposit at that depository insƟtuƟon exceeding the Federal Deposit Insurance CorporaƟon or the Na Ɵonal Credit Union AdministraƟon insurance limit. (f) The selected depository insƟtuƟon shall serve as a custodian for each such deposit. (g) On the same date that the local agency’s funds are placed pursuant to subdivision (b) by the private sector enƟty, the selected depository insƟtuƟ
on shall receive an amount of insured deposits from other Įnancial insƟtuƟons that, in total, are equal to, or greater than, the full amount of the principal that the local agency iniƟally deposited through the selected depository insƟtuƟon pursuant to subdivision (b). (h) Notwithstanding subdivisions (a) to (g), inclusive, a credit union shall not act as a selected depository 7 369
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insƟtuƟon under this secƟon unless both of the following condiƟons are saƟsĮed: (1) The credit union oīers federal depository insurance through the NaƟonal Credit Union AdministraƟon. (2) The credit union is in possession of wriƩen guidance or other wriƩen communicaƟon from the NaƟonal Credit Union AdministraƟon authorizing parƟcipaƟon of federally insured credit unions in one or more deposit placement services and aĸrming that the moneys held by those credit unions while parƟcipaƟng in a deposit placement service will at all Ɵm e s b e i n s u r e d b y t h e f e d e r a l g o v e r n m e n t . ( i ) I t i s t h e i n t e n t o f t h e Legislature that this secƟon shall not restrict compeƟƟon among private sector enƟƟes that provide placement services pursuant to this secƟon. (j) The deposits placed pursuant to this secƟon shall be subject to SecƟon 53638 and shall not, in total, exceed 50 percent of the agency’s funds that may be invested for this purpose. (k) This secƟon shall remain in eīect unƟl January 1, 2026, and as of that date is repealed. (Amended (as amended by Stats. 2015, Ch. 181, Sec. 1) by Stats. 2019, Ch. 619, Sec. 1. (AB 945) EīecƟve January 1, 2020. Repealed as of January 1, 2026, by its own provisions. See later operaƟve version, as amended by Sec. 3 of Stats. 2019, Ch. 619.) 53602.

The legislaƟve body shall invest only in notes, bonds, bills, cerƟĮcates of indebtedness, warrants, or r e g i s t e r e d w a r r a n t s w h i c h a r e l e g a l i n v e s t m e n t s f o r s a v i n g s b a n k s i n t h e S t a t e , p r o v i d e d , t h a t t h e b o a r d of supervisors of a county may, by a four-ĮŌhs vote thereof, invest in notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal investments for savings banks. (Amended by Stats. 1954, 1st Ex. Sess., Ch. 10.)
53603.

The legislaƟve body may make the investment by direct purchase of any issue of eligible securiƟes at their original sale or aŌer they have been issued. (Amended by Stats. 1953, Ch. 537.) 53604.

The legislaƟve body may sell, or exchange for other eligible securi Ɵes, and reinvest the proceeds of, the
securiƟes purchased. (Amended by Stats. 1953, Ch. 537.) 53605.

From Ɵme to Ɵme, the legislaƟve body shall sell the securiƟes so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency. (Amended by Stats. 1953, Ch. 537.)
53606.

The bonds purchased, which were issued by the purchaser, may be canceled either in saƟsfacƟon or sinking fund obligaƟons or otherwise. When canceled, they are no longer outstanding, unless in its discreƟon, the legislaƟve body holds then uncanceled. While held uncanceled, the bonds may be resold. (Added by Stats. 1949, Ch. 81.)
53607.

The authority of the legislaƟve body to invest or to reinvest funds of a local agency, or to sell or exchange securiƟes so purchased, may be delegated for a one-year period by the legislaƟve body to the treasurer of the local agency, who shall thereaŌer assume full responsibility for those transacƟons unƟl the 8 370
588
delegaƟon of authority is revoked or expires, and shall make a monthly report of those transacƟons to the legislaƟve body. Subject to review, the legislaƟve body may renew the delegaƟon of authority pursuant to this secƟon each year. (Amended by Stats. 1996, Ch. 749, Sec. 6. EīecƟve January 1, 1997.) 53608.

The legislaƟve body of a local agency may deposit for safekeeping with a federal or state associaƟon (as deĮned by SecƟon 5102 of the Financial Code), a trust company or a state or naƟonal bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this s t a t e , o r w i t h a n y F e d e r a l R e s e r v e b a n k o r w i t h a n y s t a t e o r n aƟonal bank located in any City designated as a reserve City by the Board of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligaƟons, cerƟĮcates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this arƟcle or pursuant to other legislaƟve authority. The local agency shall take from such Įnancial insƟtuƟon a receipt for securiƟes so deposited.

The authority of the legislaƟve body to deposit for safekeeping may be delegated by the legislaƟve body to the treasurer of the local agency; the treasurer shall not be responsible for securiƟes delivered to and receipted for by a Įnancial insƟtuƟon unƟl they are withdrawn from the Įnancial insƟtuƟon by the treasurer. (Amended by Stats. 1985, Ch. 983, Sec. 17. EīecƟve September 26, 1985.) 53635. (a) This secƟon shall apply to a local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, SecƟon 53601 shall apply to all local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body. This secƟon shall be interpreted in a manner that recognizes the disƟnct characterisƟcs of investment pools and the disƟnct administraƟ
ve burdens on managing and inves Ɵng funds on a pooled basis pursuant to Ar Ɵcle 6 (commencing with SecƟon 27130) of Chapter 5 of Division 2 of Title 3. A local agency that is a county, a city and county, or other local agency that pools money in deposits or investments with other agencies may invest in commercial paper pursuant to subdivision (h) of SecƟon 53601, except that the local agency shall be subject to the following concentraƟo n l i m i t s : ( 1 ) N o m o r e t h a n 4 0 p e r c e n t o f t h e l o c a l a g e n c y ’ s m o n e y m a y b e i n v e s t e d i n e l i g i b l e c o m m e r c i a l p a p e r . ( 2 ) N o m o r e t h a n 1 0 p e r c e n t o f t h e t o t a l a s s e t s o f t h e i n v e s t m e n t s h e l d b y a l o c a l a g e n c y m a y b e i n v e s t e d i n a n y o n e i s s u e r ’ s c o m m e r c i a l p a p e r . (b) Notwithstanding SecƟon 53601, the City of Los Angeles shall be subject to the concentraƟon limits of this secƟon for counƟes and for ciƟes and counƟes with regard to the investment of money in eligible commercial paper. (c) A local agency subject to this secƟon may invest in commercial paper, debt securiƟes, or other obligaƟons of a public bank, as deĮned in SecƟon 57600. (Amended by Stats. 2019, Ch. 442, Sec. 12. (AB 857) EīecƟve January 1, 2020.)
53656.
(a)At the Ɵme the treasurer enters a contract with the depository pursuant to SecƟon 53649, he or she shall authorize the agent of depository designated by the depository, but including the trust department of the depository only when acceptable to both the treasurer and the depository, to hold securiƟes of the depository in accordance with this arƟc l e t o s e c u r e t h e d e p o s i t o f t h e l o c a l a g e n c y . ( b ) O n l y t h o s e trust companies and trust departments, or the Federal Home Loan Bank of San Francisco, which have been authorized by the administrator pursuant to SecƟon 53657 shall be authorized by treasurers to act as agents of depository. (c) The securiƟes are subject to order of the depository in accordance with SecƟon 53654 except when the provisions of subdivision (i) of SecƟon 53661 and SecƟon 53665 are in eīect. (d) An agent of depository shall not release any security held to secure a local agency deposit in a 9 371
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depository unless the administrator issues an order authorizing the release where either of the following occurs: (1) A state or federal regulatory agency has taken possession of the depository. (2) A conservator, receiver, or other legal custodian has been appointed for the depository. (Amended by Stats. 1998, Ch. 1035, Sec. 10. EīecƟve September 30, 1998.)
53657.
(a) No person shall act as an agent of depository unless that person is a trust company located in this state, the trust department of a bank located in this state, or the Federal Home Loan Bank of San Francisco, and is authorized by the administrator to act as an agent of depository. (b) (1) An applicaƟon for authorizaƟon shall be in such form, shall contain such informaƟon, shall be signed in such manner, and shall (if the administrator so requires) be veriĮed in such manner, as the administrator may prescribe. (2) The fee for Įling an applicaƟon for authorizaƟon with the administrator shall be Įve hundred dollars ($500). (3) If the administrator Įnds, with respect to an applicaƟon for authorizaƟon, that the applicant is competent to act as an agent of depository and that it is reasonable to believe the applicant will comply with all applicable provisions of this arƟcle and of any regulaƟon or order issued under this arƟcle, the administrator shall approve the applicaƟon. If the administrator Įnds otherwise, the administrator shall deny the applica Ɵon. (4) When an applica Ɵon for authorizaƟon has been approved, the applicant shall Įle with the administrator an agreement to comply with all applicable provisions of this arƟcle and of any regulaƟon or order issued under this arƟcle. The agreement shall be in such form, shall contain such provisions, and shall be signed in such manner as the administrator may prescribe. (5) When an applicaƟon for authorizaƟon has been approved, the applicant has complied with paragraph (4), and all condiƟons precedent to authorizing the applicant to act as agent of depository have been fulĮlled, the administrator shall authorize the applicant to act as agent of depository. (Amended by Stats. 1996, Ch. 1063, Sec. 82. EīecƟve January 1, 1997. 10 372
590

CITY COUNCIL OF THE CITY OF OXNARD
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD
ADOPTING THE FY 2023-24 INVESTMENT POLICY
WHEREAS, Government Code Section 53646 provides that the City Treasurer may annually render to the City Council a statement of investment policy, which the City Council shall consider at a public meeting.

NOW, THEREFORE, the City Council of the City of Oxnard resolves to adopt the FY 2023-24 Investment Policy attached hereto as Exhibit A.

PASSED AND ADOPTED THIS 19th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

John C. Zaragoza, Mayor
ATTEST:

Rose Chaparro, City Clerk
APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney
373
591
Oxnard City Treasurer’s
Investment policy for fiscal
Year 2023-2024
374
592
This investment policy describes the
parameters for investing government
funds and identifies the investment
objectives, preferences or tolerance for
risk, constraints on the investment
portfolio, and how the investment
program will be managed and monitored.
375
593
This policy includes guidelines on selecting
investment types, investment advisors,
interest rate risk, maturities, and credit
quality, along with collateralization
requirements.
376
594
Consistent with Best Practice, I
included guidelines to enhance the separation
of duties and reduce the risk of fraud.

This means no other city official is authorized
to make the final decision about what
instrument to invest in except for an elected
official, but requires the city staff to perform
the administrative duties to complete
purchases.
377
595
I established a process for creating a list
of financial institutions, depositories,
and broker/dealers that will provide the
primary services necessary for
executing the investment program.
378
596
There are currently over 12 authorized
brokers including:

Multi-Bank Securities,
Piper Jaffray,
Stifel, Nicolaus & Company,
Union Bank,
Wells Fargo Bank,
Alamo Capital, and
Baird…
379
597
This investment policy was first written in
2017. We received notification from the
CMTA (California
Municipal Treasurers Association) that they
identified that policy as among the best for
the year.

Therefore, that policy has remained the
same except for legal updates when
required.
380
598
Government Code recommends monthly
reporting, but the Council limited the number of
times the investment report is presented in the
council agenda to quarterly reports.

Consequently, I prepare and submit to the City
Clerk, individual Mayor and Councilmembers a
report on a monthly basis.
381
599
Phillip Molina,
City Treasurer
382
600
City of Oxnard
Annual Investment Policy and
Annual Delegation of
Investment Authority
July 2, 2024
Presented by:

Javier Chagoyen-Lazaro, City of Oxnard
Chief Financial Officer
601
Recommendation 2
That The City Council:

1. Adopt a resolution adopting FY 2024-25 Investment Policy for the City of Oxnard, and

2. Adopt a resolution delegating investment authority to the City Chief Financial Officer.
602
• California Government Code Section 53646 and the
City’s adopted Investment Policy call for annual review and adoption of investment policy by the City Council.
• California Government Code Section 53607 establishes
that the City Council may delegate its authority to
invest City funds for a one-year period to the City
Treasurer.
• The City Council has historically delegated the
investment authority to the City Treasurer.

Background 3
603
• External auditors have reported instances of non-
compliance with the City’s adopted investment policy.
• Staff has identified California Government Code
reporting requirements not included in the periodic
investment reports provided to City Council.
• The recent retirement of the Assistant City Treasurer makes it necessary to address these issues to ensure
compliance with the California Government Code and
the City’s Investment Policy.

Background 4
604
• City’s Investment Policy provides the guidelines for
the prudent investment of the City’s funds
• Major changes in the proposed Investment Policy:
• Delegation of investment authority to the City Chief Financial Officer
• Adding the option to engage investment advisor if beneficial to the City
• Adding the option to invest in other Local Government Investment Pools aside of LAIF or Ventura County Pool
• Adding “Supranational” securities as eligible investments to bring the current portfolio in compliance with the Investment Policy
Discussion 5
605
• Delegation of investment Authority to the
City Chief Financial Officer
• Regular monitoring of portfolio compliance with Investment Policy
• Comply with reporting requirements of the California
Government Code
• Provide transparency on investment activities
Discussion 6
606
Recommendation 7
That The City Council:

1. Adopt a resolution adopting FY 2024-25 Investment Policy for the City of Oxnard, and

2. Adopt a resolution delegating investment authority to the City Chief Financial Officer.
607
8 Questions / Discussion
608