Agenda packet — Oxnard City Council, February 3, 2026

Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor and at the Oxnard main library, 251 South A Street during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.gov.

In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.

AMENDED AGENDA
Reports - Agenda Item N.3 Updated

OXNARD CITY COUNCIL

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY

OXNARD FINANCING AUTHORITY

OXNARD HOUSING AUTHORITY
Meeting Location: Council Chambers, 305 West Third Street February 3, 2026
Closed Session - 4:30 PM
Appointment Items - 5:00 PM
Regular Meeting - 6:00 PM

Zoom details to call-in for public comment during a meeting:

1. Dial Phone Number: (888) 475-4499

2. Enter Meeting ID: 883 2661 5994

3. Passcode: 318026

If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom call-in steps listed above. Once the presiding officer calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room. Press *6 when asked to unmute. Listen to the instructions provided virtually on the phone while on hold in the zoom waiting room. Please note that there is a slight time delay when viewing the meeting via television.

IN ACCORDANCE WITH ASSEMBLY BILL 2449, MEMBERS OF THE LEGISLATIVE BODY MAY MEET IN - PERSON OR REMOTELY. TO PARTICIPATE REMOTELY VISIT WWW.OXNARD.GOV.

To find out how you may provide public comment, please refer to the instructions below or at www.https://www.oxnard.org/city-meetings/.

The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.

Video recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.
*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.

YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:

1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.

2. EMAIL COMMENTS OR SIGN UP TO SPEAK REMOTELY BEFORE THE MEETING

a. Submit a request to speak remotely by 3:00 p.m. on the day of the meeting by using the form available at www.oxnard.org/citymeetings.
1 OXNARD CITY COUNCIL OXNARD FINANCING AUTHORITY HOUSING AUTHORITY

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY February 3, 2026 PAGE 2

b. Submit an email to [email protected] by 3:00 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the legislative body prior to the start of the meeting and made part of the legislative record.
c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.

3. PROVIDE PUBLIC COMMENT REMOTELY DURING THE MEETING

a. Follow Zoom details listed above.
b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.

Please review the Zoom instructions on the registration page to help ensure there are no technical difficulties during your comments and help you understand public comment procedures using Zoom. Detailed participation instructions can be found at www.oxnard.org/city-meetings.

In the event of a disruption which prevents a legislative body of the City of Oxnard from broadcasting a meeting using a call-in option or internet-based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comment using t he call-in option or internet -based service option, the legislative body shall take no further action on items appearing on a meeti ng agenda until public access to the meeting via the call-in option or internet-based service option is restored. However, if any of the broadcast options are disrupted, but any of the other broadcast options is still available to the public, the legislati ve body may take further action on items appearing on a meeting agenda without waiting for the disrupted broadcast option(s) to be restored.

A. ROLL CALL, POSTING OF AGENDA

THE FOLLOWING LEGISLATIVE BODIES ARE MEETING: City Council

CONSIDERATION OF TELECONFERENCE PARTICIPATION PURSUANT TO ASSEMBLY BILL 2449

B. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, a person may address the legislative body only on matters appearing on the closed session agenda. The presiding officer shall limit public comments to three minutes.

C. CLOSED SESSION (4:30 PM)

1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Government Code Section
54956.9(d)(1))
Name of case: Marquez v. City of Oxnard
Ventura County Superior Court, Case No. 56-2022-00562770-CU-PO-VTA Legislative Body: City Council

2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Government Code Section
54956.9(d)(1))
Name of case: Gold v. City of Oxnard
Ventura County Superior Court, Case No. 2023CUPP010160
Legislative Body: City Council

3. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Government Code section 54956.9(d)(4))
Based on existing facts and circumstances, the City Council shall decide whether to initiate litigation in one potential case.

Legislative Body: City Council

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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY February 3, 2026 PAGE 3

D. APPOINTMENT ITEMS (5:00 PM)

1. City Manager Department
SUBJECT: Department Workshop: City Manager’s Office, City Attorney’s Office, & Information Technology.

RECOMMENDATION: That the City Council receive and file an update report from the City Manager, City Attorney and the Chief Information Officer concerning information related to functions, priorities, challenges, and anticipated future needs.

Please click the following links to view the required Measure M pre-recorded presentation videos:

City Manager’s Office: https://youtu.be/mqOd3OqLwOg
City Attorney’s Office: https://youtu.be/fsY8WAVUd5s
Information Technology: https://youtu.be/xp2nchBOV2U

Legislative Body: City Council
Contact: Alexander Nguyen, Stephen Fischer, Robert Ruben, (805) 385-7430, (805) 385-7483, (805) 385-7554

E. OPENING CEREMONIES (6:00 PM)
Pledge of allegiance to the flag of the United States.

F. CEREMONIAL ITEMS

1. SUBJECT: Presentation of a Proclamation Designating the Month of February 2025 as "Black History Month."

2. SUBJECT: Presentation of a Proclamation Designating the Month of February 2025 as "Parent Leadership Month."

G. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA AND NON-ACTION ITEMS

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body, and on non-action items such as ceremonial items, report of city manager / executive director / secretary, and city council/ housing authority / successor agency / financing authority business / committee reports. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager / Executive Director / Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

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OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY February 3, 2026 PAGE 4

H. REPORT OF CITY MANAGER/EXECUTIVE DIRECTOR/SECRETARY

The City Manager/Executive Director/Secretary shall report on items of interest to the legislative body occurring since the last meeting. The legislative body cannot enter into detailed discussion or take action on any item presented during this report. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion.

1. SUBJECT: City Manager’s Corner: updates, announcements, clarifications, and local government fun facts on occasional Tuesdays.

I. CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY/FINANCING AUTHORITY

BUSINESS/COMMITTEE REPORTS

At this time, a member of the legislative body may make a brief announcement, or make a brief report on his or her activities. Further, members of the legislative body may request to schedule consideration of whether to place an item on a future agenda. The legislative body cannot enter into detailed discussion or take action on any item presented during this report. The member's report shall not exceed three minutes, unless additional time is granted by the presiding officer.

1. City Clerk Department
SUBJECT: Appointment of Mayor Mc Arthur to Regional Defense Partnership.

RECOMMENDATION: That the Mayor, with the approval of the City Council, appoint Luis A.

Mc Arthur to represent the City of Oxnard on the Regional Defense Partnership (RDP).

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/I7QMAgU6Jko

Legislative Body: City Council
Contact: Luly Lopez, (805) 385-7805

2. City Clerk Department
SUBJECT: Appointment of Members to Serve on the City's Citizen Advisory Groups (CAGs) Boards and Committees.

RECOMMENDATION: That the Mayor, with the approval of the City Council:

1. Appoint Brian Landers to the Measure O Citizen Oversight Committee as an at-large member; and

2. Appoint Ana Maria Van Hoven to the Mobilehome Park Rent Review Board as an at-large member.

(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/OtP5BTM_aqw

Legislative Body: City Council
Contact: Luly Lopez, (805) 385-7805

4 OXNARD CITY COUNCIL OXNARD FINANCING AUTHORITY HOUSING AUTHORITY

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY February 3, 2026 PAGE 5

J. REVIEW OF INFORMATION/CONSENT AGENDA
The members of the legislative body will consider whether to remove Information/Consent Agenda items for discussion later during the meeting.

K. PUBLIC COMMENTS ON INFORMATION/CONSENT AGENDA
At this time, a person may address the legislative body only on matters appearing on the information/consent agenda. The presiding officer shall limit public comments to three minutes.

L. INFORMATION/CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Oxnard City Council Minutes.

RECOMMENDATION: That the City Council approved the regular meeting minutes of January 20, 2026.

Legislative Body: City Council
Contact: Luly Lopez, (805) 385-7805

2. Finance Department
SUBJECT: Monthly Investment Report for the period ending December 31, 2025.

RECOMMENDATION: This is an information item for the City Council to receive and file.

(This item did not originate in Committee.)

Legislative Body: City Council
Contact: Javier Chagoyen-Lazaro, (805) 200-5400

3. Public Works Department
SUBJECT: Second Amendment to Envision VTA FD Auto, LLC, dba Envision Ford Lincoln Oxnard Agreement 32500315 for Automotive Mechanical Inspection, Maintenance, and Repairs.

RECOMMENDATION: That the City Council approve and authorize the Mayor to execute a Second Amendment to Fleet Services Agreement 32500315 with Envision VTA FD Auto, LLC, dba Envision Ford Lincoln Oxnard in the amount of $200,000, for a new not-to-exceed agreement value of $340,000 for automotive parts, diagnosis, services, and warranty repairs.

(This item did not originate in Committee.)

Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

M. PUBLIC HEARINGS

N. REPORTS

1. Housing Department
SUBJECT: Resolution Establishing Administrative Regulations regarding the Fair Rate of Return Petition Regulations to Implement the City’s Rent Stabilization Ordinance.

RECOMMENDATION: That the City Council review and approve the proposed resolution establishing administrative regulations to implement the provisions of the Rent Stabilization Ordinance regarding Fair Rate of Return Petition regulation. 5 OXNARD CITY COUNCIL OXNARD FINANCING AUTHORITY HOUSING AUTHORITY

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY February 3, 2026 PAGE 6

(The Community Services, Public Safety, and Housing & Economic Development Committee approved 3-0 on January 13, 2026, to approve the staff recommendation, with modifications, and to forward the item for Council approval)

Please click the following link to view the required Measure M pre-recorded presentation: https://youtu.be/BalPHsk-Kw4

Legislative Body: City Council
Contact: Brenda Lopez, (805) 385-8092

2. Housing Department
SUBJECT: Lease Agreement with Teatro de las Américas.

RECOMMENDATION: That the City Council:

1. Authorize the Mayor to execute a Lease Agreement (A-8604) with Teatro de las Américas for the use of property owned by the City located at 321 West Sixth Street for a term of three years with two one-year options to extend the Agreement, at the discretion of the City Manager, for a total of five years, at an annual fee of $1 and quarterly rent up to $2,970 of their quarterly gross revenues in excess of $10,560; and

2. Authorize the Mayor to forgive past due rent to the City in the amount of $15,690 for past due rent through January 2026, plus a daily pro-rata share through February 2026. (The Community Services, Public Safety, and Housing & Economic Development Committee approved 2-1 on January 13, 2026, to approve the staff recommendation, with amendments, and to forward the item for Council)

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

Legislative Body: City Council
Contact: Brenda Lopez, (805) 385-8092

3. Public Works Department
SUBJECT: Introduction of Cross-Connection Control and Backflow Prevention Ordinance.

RECOMMENDATION: That the City Council introduce and waive first reading of the proposed Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD AMENDING ARTICLE IV OF CHAPTER 22 OF THE CITY CODE IN ITS ENTIRETY

PERTAINING TO THE REGULATION OF CROSS-CONNECTION AND BACKFLOW STANDARDS.

(The Public Works and Transportation Committee approved 3-0 on January 27, 2026 with an amended Ordinance.)

Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/h8n4DJZfXy8

Legislative Body: City Council
Contact: Michael Wolfe, (805) 385-8055

6 OXNARD CITY COUNCIL OXNARD FINANCING AUTHORITY HOUSING AUTHORITY

OXNARD COMMUNITY DEVELOPMENT COMMISSION SUCCESSOR AGENCY February 3, 2026 PAGE 7

4. Human Resources Department
SUBJECT: Resolution Approving the Ratified Tentative Agreement with International Association of Firefighters, Local 1684.

RECOMMENDATION: That the City Council adopt a resolution approving the tentative agreement with the International Association of Firefighters, Local 1684.

(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/Ta9JaTHsBYc

Legislative Body: City Council
Contact: Steve Naveau, (805) 385-7947

O. ADJOURNMENT

7 CITY COUNCIL AGENDA REPORT

APPOINTMENT ITEMS (5:00 PM)
AGENDA ITEM NO. D.1

DATE: February 3, 2026

TO: City Council

FROM: Alexander Nguyen, City Manager, (805) 385-7430, [email protected] Stephen Fischer, City Attorney, (805) 385-7483, [email protected] Robert Ruben, Chief Information Officer, (805) 385-7554, [email protected]

SUBJECT: Department Workshop: City Manager’s Office, City Attorney’s Office, & Information Technology.

RECOMMENDATION

That the City Council receive and file an update report from the City Manager, City Attorney and the Chief Information Officer concerning information related to functions, priorities, challenges, and anticipated future needs.

Please click the following links to view the required Measure M pre-recorded presentation videos:

City Manager’s Office: https://youtu.be/mqOd3OqLwOg
City Attorney’s Office: https://youtu.be/fsY8WAVUd5s
Information Technology: https://youtu.be/xp2nchBOV2U

BACKGROUND

The City Manager, City Attorney, and Information Technology presentations are intended to provide context to the City Council regarding the functions of these departments. This update demonstrates how each department serves the community, departmental milestones and accomplishments, relevant statistical information, and workload demands. The presentation also provides information about departmental priorities, challenges, and anticipated future needs.

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: Alexander Nguyen, City Manager, Stephen Fischer, City Attorney, Robert Ruben, Chief Information Officer

ATTACHMENTS

1. CMO Department Workshop
8 2. CAO Presentation

3. IT Department Workshop

9 10
2 11
3 12
4 13
5 14
6 15
7 16
8 17
9 18
10 19
11 20
12 21
13 22
14 23
15 24
16 25
17 26
18 27
City Attorney’s Office
Workshop
February 3, 2026
City Council
Presented by:

Stephen Fischer,
City Attorney
Elle McCarron,
Assistant City Attorney
Jason Zaragoza,
Assistant City Attorney
Andrew Gonzalez,
Deputy City Attorney
28 City Attorney’s Office
2 City Attorney
Chief Assistant
City Attorney
Support Staff
Assistant City
Attorney
Assistant City
Attorney
Deputy City
Attorney
Deputy City
Attorney
Deputy City
Attorney
Deputy City
Attorney
29 What We Do
• Provide legal counsel for the entire City organization • Advise the City Council, all City departments and the City’s other legislative bodies
• Support policy implementation, compliance and risk
management
3 30
Core Areas of Services
• Transactional
• Open Meetings and Records
• Litigation
4 31
Transactional
• Contract drafting, review, and negotiation
• Ordinance and resolution preparation
• Agenda and legislative review
• Ethics advice
• Election support for Clerk’s Office
• Day-to-day legal support to City departments
5 32
Contracts & Legislative 6
• Over 600 contracts reviewed, edited, or drafted annually • General and Professional Services
• Public Works Construction
• Procurement and Solicitations
• Drafting and review of all Ordinances and Resolutions • Purchasing Ordinance
• Tenant Protection Ordinances
• Solid Waste Ordinance
• LMD Resolutions
• Council Policy Resolutions
33 Transparency & Compliance
• Brown Act compliance
• Public Records Act (CPRA) compliance
• Records retention and destruction guidance
• Citywide training and support
7 34
Public Records Act Requests
• 1210 CPRA requests processed in 2025
• Implemented a new online PRA portal (NextRequest)
• Improved functionality
• Reduced cost
• Enhanced tracking and transparency
8 35
Litigation Overview
• Litigation:
• Limited in-house litigation capacity
• Outside counsel coordination
• Criminal and civil proceedings
• Risk mitigation: claims coordination
9 36
Claims and Litigation
• 161 Government Tort Claims processed (2025)
• Employment matters:
• Arbitrations
• Mediations
• Investigations
• Writ proceedings
• General litigation and contract disputes
10 37
Administrative and Enforcement Proceedings
Administrative citation hearings, e.g.:
• Cannabis employment permits
• Dangerous fireworks violations
• Flavored Tobacco violations
• Just Cause Eviction Ordinance violations
CAO attorneys:
• Advocate for the City; or
• Serve as Hearing Officers
11 38
Gun Violence Restraining Orders (GVROs)
• 23 GVROs filed FY 2024–25
• GVRO renewals
• Coordination with law enforcement to enhance public
safety
12 39
Quality of Life (QOL) Cases
Enforcement of camping laws
Code compliance warrants:
• inspection warrants
• abatement warrants
• Legal support for compliance, enforcement, and
inspections
13 40
Why it Matters
• Reduces legal and financial risk
• Supports transparency and
accountability
• Ensures lawful policy implementation
14 41
QUESTIONS?
42 1
Internal Services
Workshop
Information Technology
Presented by:

City Council Meeting
February 3, 2026
Rob Ruben
Chief Information Technology Officer
43 Information Technology Overview
1875 39
Oxnard
Employees
IT Staff

BY THE NUMBERS
Business
Engagement
Solutions Delivery
Infrastructure &
Cybersecurity
3 Divisions
of IT
44 Overall Priorities
Defend the City!
Align to Departmental Needs
Strategic Priorities
Implement and maintain safe, durable and resilient systems and utilize industry best practices and tools to stabilize our technology systems Regular formal discussions with the leadership from each department, prioritizing their current and future needs and aligning IT resources accordingly.

Organizational Effectiveness:

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.

Information Technology Overview
45 Maximizing the value of the City’s technology investments by aligning departmental partnerships with disciplined project delivery and process optimization.

Business Relationship Management and Governance
Maintains strategic partnerships with department leaders to synchronize technology roadmaps and ensure IT resources are dedicated to the city’s highest-impact priorities Business Engagement Division
Business Analysis and Process Improvements
Defines the requirements and process improvements necessary to ensure technology solutions are built correctly, tested thoroughly, and adopted successfully
Project Management and Portfolio Management
Delivers technology initiatives through a standardized framework that ensures predictable outcomes and the optimal use of city resources
46 Geographical Information Systems (GIS)
Manages the city’s geographic maps and databases and develops the interactive tools used by staff and residents to visualize city information.

Applications Development and Support
Ensures a seamless digital workflow by managing the city's core software applications and building the integrations that allow data to flow reliably between them.

Data Management and Analytics
A recently-formed function that bridges the gap between raw city data and actionable insights by providing centralized data integration and advanced analytical support to all municipal departments.

Solutions Delivery Division
Empowering city departments through the development, integration, and management of specialized software and data solutions that enhance public service delivery.
47 Geographical Information Systems (GIS)
• Our GIS maps include over 1,200 miles of roads
• 863 total GIS tickets closed in 2025 (includes incidents, service requests, and major incidents) • 676 maps supported by GIS, including 1,084 unique map layers Applications Development and Support
• Over 350 applications are in use across the city
Data Management and Analytics
• We support over 450 databases
Solutions Delivery Division
Fun Facts:
48 Service Desk
Serves as the frontline of IT, dedicated to resolving technical issues efficiently and providing the guidance city employees need to use technology effectively
Infrastructure and Network Engineering
Manages the critical hardware and cloud infrastructure that provides a secure and scalable environment for all city applications and data
Cybersecurity
Secures the City’s technology environment and protect sensitive information through continuous monitoring, policy enforcement, and threat prevention.

Infrastructure and Cybersecurity Division
Safeguarding the city’s digital assets and maintain the critical infrastructure and support services that empower our staff to work securely and efficiently 49 Service Desk
End Devices (PC Desktops and Laptops): 1100
Mobile Devices (phones, Tablets): 1300
City Buildings with networking infrastructure: 23
Infrastructure and Network Engineering
• Number of servers (Physical and Virtual): 300
• Network Devices (Switches, Routers, Firewalls): 200
Cybersecurity
• We get approximately 25,000 cyber attacks per month!
Infrastructure and Cybersecurity Division
Fun Facts:
50 Infrastructure
• Cybersecurity Enhancements
• Infrastructure Modernization
• PC Hardware Refresh
• MS Office Implementation
• Network Operations Center
Information Technology Recent Accomplishments
Applications
• Police - Peregrine data integration and operations platform • Finance - Credit Card Processing Fees
• Police - 911 Dispatch and Records Management System Upgrade • Fire – Document Management System
• Police – Drones as First Responders
• GIS Systems and Database Upgrade
51 #
52 CITY COUNCIL AGENDA REPORT

REPORT OF CITY MANAGER/EXECUTIVE

DIRECTOR/SECRETARY
AGENDA ITEM NO. H.1

DATE: February 3, 2026

TO:

FROM:

SUBJECT: City Manager’s Corner: updates, announcements, clarifications, and local government fun facts on occasional Tuesdays.

RECOMMENDATION

BACKGROUND

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 Infrastructure and Natural Resources strategy. The purpose of the Infrastructure and Natural Resources strategy is to preserve and improve our roads, utilities, parks, trees, water supply and natural resources through effective planning, prioritization, and an equitable and efficient use of available funding.

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.

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

(identify accounts and remaining fund balance)
OR
There is no financial impact.

COMMITTEE OUTCOME
53 The ______ Committee approved 3-0 on DATE to approve the staff recommendation and to forward the item for Council approval.

OR
This item did not originate in Committee.

Prepared by:

ATTACHMENTS
None

54 CITY COUNCIL AGENDA REPORT

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR

AGENCY/FINANCING AUTHORITY

BUSINESS/COMMITTEE REPORTS
AGENDA ITEM NO. I.1

DATE: February 3, 2026

TO: City Council

FROM: Luly Lopez, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Appointment of Mayor Mc Arthur to Regional Defense Partnership.

RECOMMENDATION

That the Mayor, with the approval of the City Council, appoint Luis A. Mc Arthur to represent the City of Oxnard on the Regional Defense Partnership (RDP).

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/I7QMAgU6Jko

BACKGROUND

On December 5, 2023, Councilwoman Basua was appointed as the City of Oxnard's representative to RDP. RDP general meetings are conducted on the first Thursday of each month beginning at 7:30 a.m. in the Pacific Conference Room in the Hall of Justice at the Ventura Government Center, 800 South Victoria Avenue, Ventura, CA. Board members are not compensated for their service on RDP.

Councilwoman Basua has requested to be replaced as the member to RDP by Mayor Mc Arthur effective immediately. The next regular meeting for RDP is scheduled for February 5, 2026.

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.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Luly Lopez, City Clerk

ATTACHMENTS

1. Appointment of Mayor Mc Athur to Regional Defense Partnership

55 Luly A. López, City Clerk
Appointment of Mayor Mc Arthur to
Regional Defense Partnership
City Council
February 3, 2026
56 RECOMMENDATION 2
That the Mayor, with the approval of the City Council, appoint Luis A. Mc Arthur to represent the City of Oxnard on the Regional Defense Partnership (RDP).
57 3

REGIONAL DEFENSE PARTNERSHIP (RDP)
On December 5, 2023, Councilwoman Basua was appointed as the City of Oxnard's representative to RDP. RDP general meetings are conducted on the first Thursday of each month beginning at 7:30 a.m. in the Pacific Conference Room in the Hall of Justice at the Ventura Government Center, 800 South Victoria Avenue, Ventura, CA. Board members are not compensated for their service on RDP.

Councilwoman Basua has requested to be replaced as the member to RDP by Mayor Mc Arthur effective immediately. The next regular meeting for RDP is scheduled for February 5, 2026
58 ANY QUESTIONS?
4 59

CITY COUNCIL AGENDA REPORT

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR

AGENCY/FINANCING AUTHORITY

BUSINESS/COMMITTEE REPORTS
AGENDA ITEM NO. I.2

DATE: February 3, 2026

TO: City Council

FROM: Luly Lopez, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Appointment of Members to Serve on the City's Citizen Advisory Groups (CAGs) Boards and Committees.

RECOMMENDATION

That the Mayor, with the approval of the City Council:

1. Appoint Brian Landers to the Measure O Citizen Oversight Committee as an at-large member; and

2. Appoint Ana Maria Van Hoven to the Mobilehome Park Rent Review Board as an at-large member.

(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/OtP5BTM_aqw

BACKGROUND

Oxnard City Code section 2-36 states that the Mayor, with the approval of the City Council, shall appoint the members of each Citizen Advisory Group (CAG). The process is outlined in that provision, including nomination by each Councilmember congruent with his or her term in office undergoing background checks.

The Measure O Citizen Oversight committee is not a CAG, but its establishing resolution has similar language, except that there is no requirement for Committee members to undergo a background check before appointment. However, the City Clerk's Office requires background checks for Committee members to ensure consistency, build public trust, and guarantee qualified, reliable individuals serve the community.

The Mobile Home Park Rent Review Board is not a CAG, but its establishing ordinance in City Code section 24-5 has similar language, except that this Board consists of five (rather than seven) members appointed by the Council as a whole.

DISCUSSION

Measure O Citizen Oversight Committee

The Measure O Citizen Oversight Committee is appointed to review the use of Measure O revenues approved by the City Council. The Committee is made up of nine members with one member appointed by the Mayor to represent the City at large, six members appointed by Council District, one member active in a business organization representing the business community located in the City, and one member active in a Neighborhood Council or Neighborhood Association located in the City. Commissioners must reside in the City and be over the age of 18. For this purpose, Mayor Mc Arthur nominates Brian Landers to serve at-large, who has passed the City's formal background check procedures.

Mobilehome Park Rent Review Board

60 The Mobilehome Park Rent Review Board (MPRRB) is in charge of collecting evidence and information, initiating investigations, scheduling and conducting hearings or appeals, and issuing written findings and decisions to protect the mobile homeowners in the City from excessive rents and to protect their investment in their homes while at the same time providing for a fair return for mobile home park owners. The MPRRB is composed of five members at large who are not connected with the real estate or rental housing industry for their personal financial gain and who are not residents of, nor have any financial interest in, any mobile home or mobile home park. For this purpose, Mayor Mc Arthur nominates Ana Maria Van Hoven to serve at-large, who has passed the City's formal background check procedures.

Staff will return on a rolling basis with additional Council nominations to fill the remaining vacancies in the City’s commissions, committees and boards.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

There is no financial impact.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Luly Lopez, City Clerk

ATTACHMENTS

1. Appointment of Members to Serve on the City's Citizen Advisory Groups (CAGs) and Baords February 3 2026

61 Luly A. López, City Clerk
Appointment of Members to Serve
on the City’s Citizen Advisory
Groups (CAGs) Boards and
Committees.

City Council
February 3, 2026
62 RECOMMENDATION 2
That the Mayor, with the approval of the City Council:

1. Appoint Brian Landers to the Measure O Citizen Oversight Committee as an at-large member; and

2. Appoint Ana Maria Van Hoven to the Mobilehome Park Rent Review Board as an at-large member.
63 3

MEASURE O CITIZEN OVERSIGHT COMMITTEE (MOCOC)
Function Reviews the use of Measure O revenues approved by the City Council.

Requirements • 9 members
• 6 appointed by District
• 1 At-Large
• 1 represents Business Community
• 1 represents Neighborhood Council or Neighborhood Association • Must reside in the City and be over the age of 18.

Nomination •Mayor Mc Arthur nominates Brian Landers as an at-large member. 64 4

MOBILEHOME PARK RENT REVIEW BOARD
Function 1. In charge of collecting evidence and information, initiating investigations, scheduling and conducting hearings or appeals.

2. In charge of issuing written findings and decisions to protect the mobilehome owners in the City from excessive rents and to protect their investment in their homes while at the same time providing for a fair return for mobilehome park owners.

3. The MPRRB members are not connected with the real estate or rental housing industry for their personal financial gain and who are not residents of, nor have any financial interest in any mobilehome or mobilehome park.

4. For this purpose, the Council nominates Ana Maria Van Hoven who has passed the City's formal background check procedures.

Requirements Five members must reside in the City and be over age 18.

Nomination Mayor Mc Arthur nominates Ana Maria Van Hoven as an at-large member.
65 ANY QUESTIONS?
5 66

CITY COUNCIL AGENDA REPORT

INFORMATION/CONSENT AGENDA
AGENDA ITEM NO. L.1

DATE: February 3, 2026

TO: City Council

FROM: Luly Lopez, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Approval of Oxnard City Council Minutes.

RECOMMENDATION

That the City Council approved the regular meeting minutes of January 20, 2026.

BACKGROUND

Approval of minutes.

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.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Luly Lopez, City Clerk

ATTACHMENTS

1. City Council minutes of January 20, 2026

67 MINUTES

OXNARD CITY COUNCIL
Regular Meeting
January 20, 2026

A. ROLL CALL, POSTING OF AGENDA

At 5:02 p.m., Mayor Pro Tem Gabriel Teran presided and called to order the regular meeting of the Oxnard City Council in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. Councilmembers Bert E. Perello, Michaela Perez, Gabriela Rodriguez, Aaron Starr and Gabriel Teran were present. Councilwoman Gabriela Basua and Mayor Luis A. Mc Arthur were absent. The City Clerk stated that the agenda was posted on Thursday, January 8, 2026 at the Library, City Hall kiosk, City Administrative Offices and on the website.

Staff members present were Alexander Nguyen, City Manager; Eric Sonstegard, Assistant City Manager, Stephen Fischer, City Attorney; Terrel Harrison, Cultural and Community Services Director; Renee Rakestraw, Assistant Director of Cultural and Community Services; Julie Estrada, Cultural Arts Manager; Kathleen Ashmore, Library Manager; Jessy Tapia, Community Services Manager; Pamela Morrison, Community Services Manager and Lourdes A. López, City Clerk.

CONSIDERATION OF TELECONFERENCE PARTICIPATION PURSUANT TO ASSEMBLY BILL 2449

B. PUBLIC COMMENTS ON CLOSED SESSION ITEMS

C. CLOSED SESSION

D. APPOINTMENT ITEMS (5:00 PM)

1. Cultural & Community Services Department
SUBJECT: Cultural and Community Services Workshop.

RECOMMENDATION: That the City Council receive and file an update report from the Cultural and Community Services Department concerning information related to functions, priorities, challenges, and anticipated future needs.

The Cultural and Community Services Director, Assistant Director Rakestraw, Cultural Arts Manager, Library Manager, Community Services Manager Tapia, Community Services Manager Morrison presented and discussed departmental challenges and were available to answer questions. Discussion ensued among the Council and staff.

Public comment was received from Karina Aguilar.

Written comments received from Brian Schumacher.

68 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 2

E. OPENING CEREMONIES (6:00 PM)

At 6:35 p.m., Mayor Pro Tem Gabriel Teran presided and called to order the regular meeting of the Oxnard City Council concurrently with the Oxnard Housing Authority in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California.

Councilmembers Bert E. Perello, Michaela Perez, Gabriela Rodriguez, Aaron Starr and Gabriel Teran were present. Councilwoman Gabriela Basua and Mayor Luis A. Mc Arthur were absent. The City Clerk stated that the agenda was posted on Thursday, January 8, 2026 at the Library, City Hall kiosk, City Administrative Offices and on the website.

The meeting opened with the pledge of allegiance to the flag of the United States led by Rita Chavez a graduate of the Oxnard Fire Department EMS Corps. Councilmember Perello requested a moment of silence in memory of William Bill Terry, a resident of Oxnard, who was deeply involved in the community. Councilman Starr commented that the moment should also honor Commander Scott Aaron, a 21-year veteran with the Oxnard Police Department.

Staff members present were Alexander Nguyen, City Manager; Eric Sonstegard, Assistant City Manager, Stephen Fischer, City Attorney; Kenneth Rozell, Chief Assistant City Attorney; Javier Chagoyen-
Lázaro, Chief Financial Officer; Michael Wolfe, Public Works Director; Brian Yanez, Assistant Public Works Director; Anthony Miller, Special Districts Manager; Mark Mandell, consultant with Mandell Municipal Counseling and Lourdes A.

López, City Clerk.

F. CEREMONIAL ITEMS

1. Public Works Department
SUBJECT: Presentation of a Resolution Commending Andrea Torres for over Forty- Three Years of Exemplary Service to the City of Oxnard.

RECOMMENDATION: That the City Council adopt Resolution 16,017 commending Andrea Torres for over forty-three years of exemplary service.

Mayor Pro Tem read the resolution and presented to Andrea Torres. Assistant Public Works Director Yanez expressed his appreciation for Andrea’s dedication and commitment to the City.

It was moved by Councilmember Perello, seconded by Councilwoman Rodriguez, to approve Resolution No. 16,017 as presented. VOTE: Perello, Perez, Rodriguez, Starr and Teran voted in favor. The motion carried 5-0. Councilwoman Basua and Mayor Mc Arthur were absent.

69 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 3

G. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA AND NON-ACTION ITEMS

Public comments were received from Karla Alejandra, Eric Andrist and Greg Runyon.

Written comments were received from Lyric Aebi, Heather Schmidt and Blanca Ortega.

H. REPORT OF CITY MANAGER

I. CITY COUNCIL BUSINESS/COMMITTEE REPORTS

The members of the Council provided brief announcements regarding various activities.

Councilman Starr, Councilwoman Rodriguez and Mayor Pro Tem Teran requested an agenda item outlining what PEG funds have been spent.

Councilman Starr commented on how AB 253, California Residential Private Permitting Review Act is aiming to speed up the process and would like to see how that will impact us. He would like to see a report on what the Community Development Department is doing to implement this in a way that works best for those trying to get their projects through.

1. City Attorney Department
SUBJECT: Adoption of Resolution Protecting the California Coast and Public Lands from Oil and Gas Drilling and Exploration.

RECOMMENDATION: That the City Council adopt Resolution No. 16,018 opposing new leases for oil and gas activities in public lands and off the coast of California.

Public comments were received from Alex Mantanona, Abrah Steward, Molly McCoy, Melissa Munoz, Eric Burschinger, Cesar, Larry Barbarine and Doug Partello.

Written comments were received from Ann Dorsey, Susan Brinkmeyer, Jon Huycke and Lauri Kamiel.

It was moved by Councilwoman Perez, seconded by Councilmember Perello, to approve the recommendation action as presented.

Discussion continued among the Council.

It was moved by Councilwoman Rodriguez, seconded by Councilmember Perez, to close the debate. VOTE: Perez, Rodriguez, Perello and Teran voted in favor. The 70 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 4

motion carried 4-0. Councilman Starr abstained. Councilwoman Basua and Mayor Mc Arthur were absent.

On the original motion by Councilwoman Perez, to approve the recommendation action as presented. VOTE: Rodriguez, Perello, Perez and Teran voted in favor; Councilman Starr voted no. The motion carried 4-1. Councilwoman Basua and Mayor Mc Arthur were absent.

2. City Clerk Department
SUBJECT: Appointment of Members to Serve on the City's Citizen Advisory Groups (CAGs).

RECOMMENDATION: That the Mayor, with the approval of the City Council, make the following appointments:

1. To Community Relations Commission: Alejandro Moises Castro (at large);

2. To Cultural Arts Commission: Jennifer Andrea Alvarez (at large); and

3. To Senior Services Commission: Lupe Servin Reyes (D-4).

(This item did not originate in Committee.)

Public comments were received from Larry Barbarine.

It was moved by Mayor Pro Tem Teran, seconded by Councilman Starr, to approve the appointments as presented. VOTE: Rodriguez, Starr, Perello, Perez and Teran voted in favor. The motion carried 5-0. Councilwoman Basua and Mayor Mc Arthur were absent.

J. REVIEW OF INFORMATION/CONSENT AGENDA

Item No. L-3 was reviewed and discussed among the Council and staff.

K. PUBLIC COMMENTS ON INFORMATION/CONSENT AGENDA

L. INFORMATION/CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Oxnard City Council Minutes.

RECOMMENDATION: That the City Council approved the regular meeting minutes of January 6, 2026.

3. Finance Department
SUBJECT: Monthly Report and Accounting of All Receipts, Disbursements and Fund Balances.
71 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 5

RECOMMENDATION: That the City Council receive and file this report and accounting of all receipts, disbursements and fund balances for the month of November 2025.

(This item did not originate in Committee)

4. Fire Department
SUBJECT: Ratification of Authorization to be a Sub-Recipient of the EDD Employment and Training Pathways Program Year 2025-2026.

RECOMMENDATION: That the City Council:

1. Ratify the City Manager’s authorization to be a sub-recipient of a Public Works Alliance grant application for EDD Employment and Training Pathways Program Year 2025-2026;

2. Approve an extension to the existing Limited Term positions that fulfil the obligations of the EMS Corps program through December 31, 2027;

3. Authorize the City Manager or designee to recognize grant award and approve budget appropriations for the use of State grant funding (Fund 210) upon award.

6. Public Works Department
SUBJECT: Public Project Agreement 32600272 with R. E. Schultz Construction, Inc., for Citywide Playground Replacement Project - Ololkoy (Oxnard) Beach Park Phase II, Specification No. PW 26-20.

RECOMMENDATION: That the City Council approve and authorize:

1. A total of $271,538 in Project funds for the Citywide Playground Replacement Project - Ololkoy (Oxnard) Beach Park Phase II, Specification No. PW 26-20;

2. The Mayor to execute an agreement with R. E. Schultz Construction, Inc. in the amount of $226,282 for the Project; and

3. Approve a Project contingency amount of $22,628 (~10%) with R. E.

Schultz Construction, Inc. for a total not to exceed value of $248,910 for the Project; and

4. A Project allocation amount of $22,628 (~10%) for engineering, inspection, survey and project management for the Project.
(This item did not originate in Committee as this is a capital improvement project specifically listed in the City's Capital Improvement Program budget, which was previously approved by the City Council.)

72 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 6

7. Public Works Department
SUBJECT: First Amendment to On-Call General Services Agreement 32600082 with Collicutt Energy Services, Inc. for Generator Maintenance Services for the Wastewater Division.

RECOMMENDATION: That the City Council approve and authorize the execution of a First Amendment to an On-Call General Services Agreement with Collicutt Energy Services, Inc. (Collicutt) to increase the not-to-exceed amount from $220,000 to $495,000, for additional generator maintenance services for the Wastewater Division.

(This item did not originate in Committee.)

8. Public Works Department
SUBJECT: Agreement 32600206 with Innovative Engineering Systems, Inc. dba Agilitech for the Environmental Resources: Scale House and Truck Weigh Scale Replacement Project, Specification #25-104 and RFP #25-123.

RECOMMENDATION: That the City Council approve and authorize the Mayor to execute an Agreement with Innovative Engineering Systems, Inc. dba Agilitech for a total contract amount not to exceed $310,700.00 with an initial term of one year from January 21, 2026, and ending on January 20, 2027, with the option for two consecutive one-year period extensions ending January 20, 2029 for design, permitting, and construction support services for the Environmental Resources:

Scale House and Truck Weigh Scale Replacement Project.

(This item did not originate in Committee as this is a capital improvement project specifically listed in the City’s Capital Improvement program budget, which was previously approved by the City Council.)

Consent Item No. L-3
The Chief Financial Officer and Assistant City Manager presented and were available to answer questions. Discussion ensued among the Council and staff. Staff requested that this item be reschedule to provide additional clarification.

Consent Item No. L-2 and L-5*
*Consent Item L-2 and L-5 will be listed in the Oxnard Housing Authority minutes.

Consent Item Nos. L-1, L-4, L-6, L-7 and L-8
It was moved by Councilwoman Rodriguez, seconded by Councilwoman Perez, to approve the Information/Consent items as presented. VOTE: Perello, Perez, Rodriguez, Starr and Teran voted in favor. The motion carried 5-0. Councilwoman Basua and Mayor Mc Arthur were absent.

73 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 7

OXNARD HOUSING AUTHORITY

At 8:24 p.m., the joint meeting with the Oxnard Housing Authority concluded.

M. PUBLIC HEARINGS

N. REPORTS

1. Public Works Department
SUBJECT: Grant Application to the 2026 U.S. Department of Transportation Better Utilizing Investments to Leverage Development (BUILD) Grant Program.

RECOMMENDATION: That the City Council approve and authorize the:

1. Submission of a grant application for Better Utilizing Investments to Leverage Development (BUILD) for $12,000,000 with a $3,000,000 or 20% match requirement from the Traffic Circulation Development Impact Fee Fund (350) Subfund 8040, for a total amount of $15,000,000 (if awarded, staff will return to the City Council to recommend recognizing and appropriating the grant and 20% match requirement);

2. City Manager, or designee, to execute the grant agreements;

3. Chief Financial Officer, or designee, to submit financial reports, grant claims for the use of grant funds; and

4. Public Works Director, or designee, to submit non-financial reports. (This item did not originate in Committee as it is for a capital improvement project specifically listed in the City's Capital Improvement Program budget, which was previously approved by the City Council.)

The Public Works Director presented and was available to answer questions.

Discussion ensued among the Council and staff.

No public comments were received.

It was moved by Councilmember Perello, seconded by Councilwoman Rodriguez, to approve the recommended action. VOTE: Perez, Rodriguez, Starr, Perello and Teran voted in favor. The motion carried 5-

0. Councilwoman Basua and Mayor Mc
Arthur were absent.

2. Public Works Department
SUBJECT: Initiation of Proceedings to Establish Landscape Maintenance District 43A (Greenbelt Lighting Overlay) and Appropriation From General Reserve to Fund Proceedings.

RECOMMENDATION: The City Council:

74 JANUARY 20, 2026 OXNARD CITY COUNCIL PAGE 8

1. Approve and authorize an appropriation of $40,000 from the General Fund Reserve to pay expenses (including expenses of conducting a Proposition 218 property owner mail ballot proceeding) associated with establishing a new overlay assessment district, with the same boundaries as LMD 43, to fund the Greenbelt Lighting Replacement Project C2407; and

2. Approve and authorize the Mayor to approve a resolu
tion initiating proceedings to
establish Landscape Maintenance District No. 43A (Greenbelt Lighting Overlay).

(This item did not originate in Committee as this is in relation to a capital improvement project specifically listed in the City's Capital Improvement Program budget, which was previously approved by the City Council.)

The Public Works Director, Special Districts Manager and Consultant Mandell presented and were available to answer questions. Discussion ensued among the Council and staff.

Public comments were received from Alicia Percell, Doug Partello and Eric Andrist.

Written comments were received from Joe Garcia and Heather Schmidt.

It was moved by Mayor Pro Tem Teran, seconded by Councilwoman Perez, to postpone the item to a future date and go back to the community for another community meeting.

Discussion ensued among the Council. Councilwoman Perez withdrew her second.

It was moved by Councilman Starr to postpone this item indefinitely. The motion did not receive a second.

Councilwoman Perez reinstated her second of Mayor Pro Tem’s motion, to postpone the item to a future date and go back to the community for another community meeting. VOTE: Rodriguez, Perez and Teran in favor. The motion carried 3-2; Councilmembers Starr and Perello voting no. Councilwoman Basua and Mayor Mc Arthur were absent.

O. ADJOURNMENT

There being no further business on the agenda, and without objection, Mayor Pro Tem Teran adjourned the meeting at 9:48 p.m.

________________________________ _____________________________ LOURDES A. LÓPEZ GABRIEL TERAN
City Clerk Mayor Pro Tem

75 CITY COUNCIL AGENDA REPORT

INFORMATION/CONSENT AGENDA
AGENDA ITEM NO. L.2

DATE: February 3, 2026

TO: City Council

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

SUBJECT: Monthly Investment Report for the period ending December 31, 2025.

RECOMMENDATION

This is an information item for the City Council to receive and file.

(This item did not originate in Committee.)

BACKGROUND

The City of Oxnard (City) invests funds in compliance with the California Government Code Section 53600 et. Seq., and the City’s Investment Policy. This report follows the guidelines established in the California Government Code section 53646 and the City’s adopted Investment Policy.

DISCUSSION:

The City’s total cash and investment position as of December 31, 2025 was $481.7 million, with $14.1 million in cash accounts and $467.6 million in investments, as summarized in the table below.

76 Statutory Compliance

All investment transactions have been executed in conformance with the City’s Investment Policy and the California Government Code. The table below represents the City’s investment portfolio as of December 31, 2025 by authorized investment and duration for a total portfolio amount of $467.6 million.

Portfolio Trends

The cash and investment position, as of December 31, 2025, increased by $36.0 million compared with the prior month.

The increase is driven by property tax received in the month. The trend for the cash and investment position is represented in the following chart.

The California Government Code and the City’s investment policy define the eligible investments that the City can purchase to allocate surplus funds. The table below summarizes the City’s investment portfolio by investment type. The individual investments included under each investment type are included as an attachment to this report.

77 The chart below represents the City’s investment portfolio classified by days until maturities from December 31, 2025.

Pooled investments in LAIF and Ventura County Investment Pooled provide immediate liquidity to support cash flow needs of the City, and are included in the maturity group 0 to 30 days.

The City’s average return on investment for the month December was 3.10%, LAIF average monthly effective yields for the same period was 4.03%. The City holds investments until maturity, and will evaluate reinvestment options based on market conditions and liquidity needs as those funds became available for investing in the upcoming months.

The next chart represents the City’s average return on investments, alongside with three-year Treasury bill and the LAIF Pooled Monthly Investment Account (PMIA) average Monthly Effective Yields, as benchmarks for the City’s portfolio.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

There is no financial impact.

COMMITTEE OUTCOME

78 This item did not originate in Committee.

Prepared by: Javier Chagoyen-Lazaro, Chief Financial Officer

ATTACHMENTS

1. 202512 Investment Report

79 Investment report
for the month Ended in December 31, 2025
City of Oxnard
Javier Chagoyen-Lazaro Date
Chief Financial Officer
City of Oxnard
Investments have been made in compliance with California Government Code and in accordance with the City's Investment Policy.

SYMPRO provides the market value for negotiable instruments held in safekeeping included in this report. For investments not held by the City's custodian, market values are obtained from individual monthly statements. Based on analysis of cash receipts, expenditures, and daily cash flows, it is projected that revenues and investment liquidity are sufficient to meet expenditure requirements for the next six months.

All Investment transactions have been exectured in accordance with the criteria stated in the City's Investment Policy (Resolution No. 15,994) adopted by the City Council held on July 1, 2025 01/20/2026
80 City of Oxnard
Cash and Investment Summary
Month Ended
December 31, 2025
Cash and Investment Position December 2025
Cash
Bank of America General Account 12,271,080.80 $
Bank of America Successor Agency Account 1,748,965.28
Bank of America Citations Account 51,209.09
Bank of America Golf Course Account -
Total Cash 14,071,255.17
Investments
Local Agency Investment Fund (LAIF) 75,000,000.00
Ventura County Investment Pool (VCIP) 52,834,039.83
CAMP 75,074,962.36
Certificates of Deposits -
Bank Notes -
Municipal Bonds -
Federal Agency -
Supra-National Agency Bonds * -
Medium Term Notes * 20,287,238.79
U.S. Treasury Notes * 5,021,405.00
U.S. Government Sponsored Entities * 239,400,967.23
Total Investments 467,618,613.21
Total Cash and Investments 481,689,868.38 $
* Market Value
81 Investment Portfolio Detail
Fiscal Year 2025 - 2026
December 1 - December 31, 2025
CUSIP / Investment # Issuer Purchase Date Par Value Market Value Book Value Stated Rate Days to Maturity YTM/C Maturity Date California Asset Mgmt Program
CAMP Caliifornia Asset Management P 12/1/ 2025 75,074,962.36 75,074,962.36 75,074,962.36 3.950 1 3.950 VCIP Ventura County Invest ment Pool 52,834,039.83 52,834,039.83 52,834,039.83 4.260 1 4.260 31422XAS1 Farmer Mac 3/2/2021 1, 000,000.00 995,131.00 1,000,000.00 0.610 60 0.610 3/2/2026 3133ERP70 Federal Farm Credit Bank 12/ 31/2024 10,000,000.00 10,148,100.00 9,991,815.24 4.250 725 4.294 12/27/2027 3133ERT27 Federal Farm Credit Bank 1/ 16/2025 10,000,000.00 10,002,210.00 9,997,281.34 4.670 742 4.684 1/13/2028 3133ERN31 Federal Farm Credit Bank 1/ 16/2025 5,000,000.00 5,024,635.00 4,988,211.92 4.340 721 4.468 12/23/2027 3133ETJH1 Federal Farm Credit Bank 5/ 29/2025 5,000,000.00 5,016,990.00 5,000,000.00 4.600 1,244 4.600 5/29/2029 3133ENBK5 Federal Farm Credit Bank 10/20/2021 1,000,000.00 980,560.00 1,000,000.00 1.140 292 1.140 10/20/2026 3130AQKJ1 Federal Home Loan Bank 1/28/2022 1,000,000.00 980,378.00 1,000,000.00 1.700 392 1.700 1/28/2027 3130AQPD9 Federal Home Loan Bank 2/17/2022 1,000,000.00 982,779.00 1,000,000.00 2.000 412 2.000 2/17/2027 3130AQPD9 Federal Home Loan Bank 2/17/2022 1,000,000.00 982,779.00 1,000,000.00 2.000 412 2.000 2/17/2027 3130AQSM6 Federal Home Loan Bank 2/25/2022 1,000,000.00 982,970.00 1,000,000.00 2.050 420 2.050 2/25/2027 3130AQRH8 Federal Home Loan Bank 2/25/2022 1,000,000.00 982,616.00 1,000,000.00 2.000 420 2.000 2/25/2027 3130AQRK1 Federal Home Loan Bank 2/25/2022 1,000,000.00 982,749.00 1,000,000.00 2.030 420 2.030 2/25/2027 3130AQYG2 Federal Home Loan Bank 2/28/2022 1,000,000.00 987,772.00 1,000,000.00 2.500 420 2.493 2/25/2027 3130AQX65 Federal Home Loan Bank 3/4/2022 2,000,000.00 1,970,192.00 2,000,000.00 2.250 427 2.250 3/4/2027 3130AQVH3 Federal Home Loan Bank 3/4/2022 1,000,000.00 983,811.00 1,000,000.00 2.200 427 2.200 3/4/2027 3130AQVH3 Federal Home Loan Bank 3/4/2022 1,000,000.00 983,811.00 1,000,000.00 2.200 427 2.200 3/4/2027 3130AQVH3 Federal Home Loan Bank 3/4/2022 1,300,000.00 1,278,954.30 1,299,083.50 2.200 427 2.264 3/4/2027 3130AQX65 Federal Home Loan Bank 3/4/2022 2,700,000.00 2,659,759.20 2,699,365.50 2.250 427 2.271 3/4/2027 3130AR2D2 Federal Home Loan Bank 3/10/2022 1,000,000.00 998,789.00 1,000,000.00 3.500 433 3.034 3/10/2027 3130ARAX9 Federal Home Loan Bank 3/30/2022 1,000,000.00 992,576.00 1,000,000.00 3.000 448 3.000 3/25/2027 3130ARDV0 Federal Home Loan Bank 4/8/2022 1,000,000.00 992,940.00 1,000,000.00 3.000 448 3.000 3/25/2027 3130APN43 Federal Home Loan Bank 12/31/2024 10,000,000.00 9,890,280.00 9,843,232.80 2.250 299 4.250 10/27/2026 3130B4B42 Federal Home Loan Bank 12/31/2024 5,000,000.00 4,999,670.00 4,998,339.55 4.625 721 4.643 12/23/2027 3130B6EY8 Federal Home Loan Bank 5/ 29/2025 5,000,000.00 5,009,675.00 4,999,598.79 4.400 872 4.403 5/22/2028 3130B6J98 Federal Home Loan Bank 5/28/2025 5,000,000.00 5,002,220.00 4,998,758.26 4.500 869 4.511 5/19/2028 3130B6HM1 Federal Home Loan Bank 5/29/2025 5,000,000.00 5,011,785.00 5,000,000.00 4.520 1,244 4.520 5/29/2029 3130AKN36 Federal Home Loan Bank 1/20/ 2021 2,000,000.00 1,997,774.00 2,000,000.00 0.525 14 0.525 1/15/2026 3130AKQ74 Federal Home Loan Bank 1/22/2021 5,000,000.00 4,991,515.00 5,000,000.00 0.625 21 0.625 1/22/2026 3130AKMD5 Federal Home Loan Bank 1/26/2021 5,000,000.00 4,989,660.00 4,999,965.28 0.500 25 0.510 1/26/2026 3130AKNR3 Federal Home Loan Bank 1/ 26/2021 1,000,000.00 997,972.00 1,000,000.00 0.560 25 0.560 1/26/2026 3130AKU61 Federal Home Loan Bank 1/27/2021 5,000,000.00 4,990,085.00 5,000,000.00 0.750 26 0.609 1/27/2026 3130AKU61 Federal Home Loan Bank 1/27/2021 5,000,000.00 4,990,085.00 5,000,000.00 0.750 26 0.609 1/27/2026 3130AKQX7 Federal Home Loan Bank 1/28/2021 2,000,000.00 1,995,804.00 2,000,003.00 0.700 27 0.698 1/28/2026 3130AKRN8 Federal Home Loan Bank 1/28/2021 2,000,000.00 1,995,734.00 2,000,000.00 0.650 27 0.650 1/28/2026 County Investment Pool
Federal Agency Coupon Securities
Pooled Investments
82 Investment Portfolio Detail
Fiscal Year 2025 - 2026
December 1 - December 31, 2025
CUSIP / Investment # Issuer Purchase Date Par Value Market Value Book Value Stated Rate Days to Maturity YTM/C Maturity Date 3130AKQX7 Federal Home Loan Bank 1/28/2021 5,000,000.00 4,989,510.00 5,000,000.00 0.700 27 0.700 1/28/2026 3130AKQ82 Federal Home Loan Bank 1/28/2021 1,500,000.00 1,496,656.50 1,500,000.00 0.600 27 0.600 1/28/2026 3130AKPN0 Federal Home Loan Bank 1/29/2021 2,000,000.00 1,995,496.00 2,000,000.00 0.600 28 0.600 1/29/2026 3130AKVN3 Federal Home Loan Bank 1/ 29/2021 1,000,000.00 997,689.00 1,000,000.00 0.520 28 0.520 1/29/2026 3130AKWD4 Federal Home Loan Bank 2/9/2021 1,000,000.00 996,907.00 1,000,000.00 0.750 39 0.539 2/9/2026 3130AKWD4 Federal Home Loan Bank 2/9/2021 1,000,000.00 996,907.00 1,000,000.00 0.750 39 0.540 2/9/2026 3130AKTJ5 Federal Home Loan Bank 2/ 9/2021 2,000,000.00 1,993,036.00 2,000,000.00 0.540 39 0.540 2/9/2026 3130AKVA1 Federal Home Loan Bank 2/ 9/2021 2,000,000.00 1,993,814.00 2,000,000.00 0.750 39 0.564 2/9/2026 3130AKVR4 Federal Home Loan Bank 2/ 12/2021 1,000,000.00 996,515.00 1,000,000.00 0.550 42 0.550 2/12/2026 3130AL7M0 Federal Home Loan Bank 2/24/2021 2,000,000.00 1,991,010.00 1,999,852.78 0.625 54 0.676 2/24/2026 3130AKXJ0 Federal Home Loan Bank 2/24/2021 1,000,000.00 995,577.00 999,976.44 0.600 54 0.616 2/24/2026 3130AKXJ0 Federal Home Loan Bank 2/ 24/2021 5,000,000.00 4,977,885.00 4,999,882.22 0.600 54 0.616 2/24/2026 3130AKXJ0 Federal Home Loan Bank 2/ 24/2021 3,000,000.00 2,986,731.00 3,000,000.00 0.600 54 0.600 2/24/2026 3130AKXJ0 Federal Home Loan Bank 2/24/2021 1,000,000.00 995,577.00 999,985.28 0.600 54 0.610 2/24/2026 3130AKXJ0 Federal Home Loan Bank 2/24/2021 1,000,000.00 995,577.00 999,985.28 0.600 54 0.610 2/24/2026 3130ALCB8 Federal Home Loan Bank 2/24/2021 1,000,000.00 995,690.00 1,000,000.00 0.680 54 0.680 2/24/2026 3130AL7M0 Federal Home Loan Bank 2/24/2021 1,000,000.00 995,505.00 999,985.28 0.625 54 0.635 2/24/2026 3130ALFS8 Federal Home Loan Bank 3/10/2021 1,000,000.00 994,705.00 1,000,000.00 0.800 68 0.800 3/10/2026 3130ALDN1 Federal Home Loan Bank 3/16/2021 1,000,000.00 994,235.00 1,000,000.00 0.800 74 0.800 3/16/2026 3130ALDN1 Federal Home Loan Bank 3/16/2021 1,000,000.00 994,235.00 1,000,000.00 0.800 74 0.800 3/16/2026 3130ALGB4 Federal Home Loan Bank 3/17/2021 1,000,000.00 994,289.00 1,000,000.00 0.800 75 0.800 3/17/2026 3130ALGJ7 Federal Home Loan Bank 3/23/2021 975,000.00 969,414.23 975,000.00 1.000 81 1.000 3/23/2026 3130ALGC2 Federal Home Loan Bank 3/23/2021 1,000,000.00 993,995.00 1,000,000.00 0.875 81 0.875 3/23/2026 3130ALLN2 Federal Home Loan Bank 3/24/2021 2,000,000.00 1,990,038.00 2,000,000.00 1.500 82 0.871 3/24/2026 3130AM2F8 Federal Home Loan Bank 4/29/2021 1,000,000.00 991,702.00 1,000,000.00 1.125 118 1.125 4/29/2026 3130AM4L3 Federal Home Loan Bank 4/29/2021 1,000,000.00 991,535.00 1,000,000.00 1.250 118 1.100 4/29/2026 3130AMJH6 Federal Home Loan Bank 5/26/2021 1,000,000.00 989,392.00 1,000,000.00 1.050 145 1.050 5/26/2026 3130AML42 Federal Home Loan Bank 5/27/2021 1,000,000.00 990,096.00 1,000,000.00 1.200 146 0.957 5/27/2026 3130AMM41 Federal Home Loan Bank 6/16/2021 5,000,000.00 4,941,280.00 5,000,000.00 1.000 166 1.000 6/16/2026 3130AMPT3 Federal Home Loan Bank 6/23/2021 5,000,000.00 4,939,880.00 5,000,000.00 1.030 173 1.030 6/23/2026 3130AMYP1 Federal Home Loan Bank 7/15/2021 3,000,000.00 2,959,725.00 3,000,000.00 1.125 195 1.125 7/15/2026 3130ANWH9 Federal Home Loan Bank 9/24/2021 1,000,000.00 982,339.00 1,000,000.00 1.080 257 1.080 9/15/2026 3130APB87 Federal Home Loan Bank 10/13/2021 1,000,000.00 980,860.00 1,000,000.00 1.100 285 1.100 10/13/2026 3130APB87 Federal Home Loan Bank 10/13/2021 1,000,000.00 980,860.00 1,000,000.00 1.100 285 1.100 10/13/2026 3130AP5A9 Federal Home Loan Bank 10/15/2021 1,000,000.00 980,118.00 1,000,000.00 1.050 287 1.050 10/15/2026 3130AP5A9 Federal Home Loan Bank 10/15/2021 1,000,000.00 980,118.00 1,000,000.00 1.050 287 1.050 10/15/2026 3130AP5A9 Federal Home Loan Bank 10/15/2021 1,000,000.00 980,118.00 1,000,000.00 1.050 287 1.050 10/15/2026 3130AP3X1 Federal Home Loan Bank 10/15/2021 1,000,000.00 980,041.00 999,952.67 1.040 287 1.046 10/15/2026 3130AP5A9 Federal Home Loan Bank 10/15/2021 1,000,000.00 980,118.00 1,000,000.00 1.050 287 1.050 10/15/2026 3130AP3X1 Federal Home Loan Bank 10/15/2021 1,000,000.00 980,041.00 1,000,000.00 1.040 287 1.040 10/15/2026 3130APAY1 Federal Home Loan Bank 10/21/2021 3,000,000.00 2,940,348.00 3,000,000.00 1.100 293 1.100 10/21/2026 3130APBF1 Federal Home Loan Bank 10/22/2021 1,000,000.00 980,674.00 1,000,000.00 1.150 294 1.150 10/22/2026 83 Investment Portfolio Detail
Fiscal Year 2025 - 2026
December 1 - December 31, 2025
CUSIP / Investment # Issuer Purchase Date Par Value Market Value Book Value Stated Rate Days to Maturity YTM/C Maturity Date 3130APBF1 Federal Home Loan Bank 10/22/2021 2,000,000.00 1,961,348.00 2,000,000.00 1.150 294 1.150 10/22/2026 3130APHT5 Federal Home Loan Bank 10/26/2021 2,000,000.00 1,960,730.00 2,000,000.00 1.200 298 1.200 10/26/2026 3130APC45 Federal Home Loan Bank 10/26/2021 1,000,000.00 980,479.00 1,000,000.00 1.180 298 1.180 10/26/2026 3130APHT5 Federal Home Loan Bank 10/26/2021 2,000,000.00 1,960,730.00 1,999,836.11 1.200 298 1.210 10/26/2026 3130APCX1 Federal Home Loan Bank 10/26/2021 1,000,000.00 981,035.00 1,000,000.00 1.250 298 1.250 10/26/2026 3130APCX1 Federal Home Loan Bank 10/26/2021 2,000,000.00 1,962,070.00 2,000,000.00 1.250 298 1.250 10/26/2026 3130APCX1 Federal Home Loan Bank 10/26/2021 1,000,000.00 981,035.00 1,000,000.00 1.250 298 1.250 10/26/2026 3130APG82 Federal Home Loan Bank 10/28/2021 1,000,000.00 991,683.00 1,000,000.00 2.000 300 1.264 10/28/2026 3130APHV0 Federal Home Loan Bank 10/28/2021 2,000,000.00 1,960,728.00 2,000,000.00 1.180 300 1.180 10/28/2026 3130APDQ5 Federal Home Loan Bank 10/28/2021 1,000,000.00 978,029.00 1,000,000.00 1.250 300 1.250 10/28/2026 3130APKQ7 Federal Home Loan Bank 11/10/2021 1,000,000.00 980,197.00 1,000,000.00 1.250 313 1.250 11/10/2026 3130APKQ7 Federal Home Loan Bank 11/10/2021 1,000,000.00 980,197.00 999,570.83 1.250 313 1.302 11/10/2026 3130APKQ7 Federal Home Loan Bank 11/10/2021 1,000,000.00 980,197.00 1,000,000.00 1.250 313 1.250 11/10/2026 3130APLP8 Federal Home Loan Bank 11/16/2021 1,000,000.00 981,367.00 1,000,000.00 1.375 319 1.375 11/16/2026 3130APLP8 Federal Home Loan Bank 11/16/2021 1,000,000.00 981,367.00 1,000,000.00 1.375 319 1.375 11/16/2026 3130APL37 Federal Home Loan Bank 11/16/2021 1,000,000.00 981,203.00 1,000,000.00 1.400 319 1.400 11/16/2026 3130APNK7 Federal Home Loan Bank 11/18/2021 1,000,000.00 980,585.00 1,000,000.00 1.375 321 1.375 11/18/2026 3130APPZ2 Federal Home Loan Bank 11/23/2021 1,000,000.00 982,041.00 1,000,000.00 1.500 326 1.500 11/23/2026 3130AQ3T8 Federal Home Loan Bank 12/23/2021 1,000,000.00 985,091.00 1,000,000.00 2.000 356 1.641 12/23/2026 3130AQAB9 Federal Home Loan Bank 12/30/2021 1,250,000.00 1,225,385.00 1,250,000.00 1.625 363 1.625 12/30/2026 3134GXQF4 Federal Home Loan Mtg Corp 4/13/2022 1,000,000.00 994,596.00 1,000,000.00 3.250 467 3.250 4/13/2027 3134GXSH8 Federal Home Loan Mtg Corp 5/17/2022 1,000,000.00 997,499.00 1,000,000.00 4.000 501 4.000 5/17/2027 3134HA3T8 Federal Home Loan Mtg Corp 1/17/2025 10,000,000.00 10,003,010.00 9,998,298.51 4.550 743 4.559 1/14/2028 3134HBBV2 Federal Home Loan Mtg Corp 2/28/2025 10,000,000.00 9,999,800.00 10,000,000.00 4.470 785 4.470 2/25/2028 3134HBBU4 Federal Home Loan Mtg Corp 2/27/2025 10,000,000.00 9,992,690.00 10,000,000.00 4.640 1,153 4.640 2/27/2029 3134HBSZ5 Federal Home Loan Mtg Corp 6/4/2025 5,000,000.00 4,998,270.00 5,000,000.00 4.550 1,250 4.550 6/4/2029 3134GXKJ2 Federal Home Loan Mtg Corp 1/22/2021 2,000,000.00 1,996,606.00 2,000,000.00 0.550 21 0.550 1/22/2026 LAIF LAIF 75,000,000.00 75,000,000.00 75,000,000.00 4.025 1 4.025 037833EB2 Apple Inc. 2/8/2021 1, 000,000.00 996,840.00 999,998.97 0.700 38 0.071 2/8/2026 06048WL32 Bank of America 2/24/2021 1,000,000.00 995,291.00 1,000,000.00 0.800 54 0.080 2/24/2026 06048WL99 Bank of America 5/14/2021 1,000,000.00 989,695.00 1,000,000.00 1.400 133 1.400 5/14/2026 06048WL99 Bank of America 5/14/2021 2,000,000.00 1,979,390.00 2,000,000.00 1.400 133 1.400 5/14/2026 06048WL99 Bank of America 5/14/2021 2,000,000.00 1,979,390.00 2,000,000.00 1.400 133 1.400 5/14/2026 06048WM64 Bank of America 7/12/2021 1,000,000.00 983,640.00 999,852.64 1.200 175 1.231 6/25/2026 06048WM72 Bank of America 7/30/2021 1,000,000.00 981,693.00 1,000,000.00 1.200 210 1.200 7/30/2026 06048WP20 Bank of America 9/24/2021 1,000,000.00 980,815.00 1,000,000.00 1.250 266 1.250 9/24/2026 06048WP20 Bank of America 9/24/2021 1,000,000.00 980,815.00 1,000,000.00 1.250 266 1.250 9/24/2026 17290A2M1 Citi Bank 7/21/2021 1,000,000.00 982,859.00 1,000,000.00 1.400 201 1.400 7/21/2026 38150AH99 Goldman Sachs 8/17/2021 1,000,000.00 979,034.00 1,000,000.00 1.350 228 1.350 8/17/2026 24422EVK2 John Deere Capital 1/27/2021 3,000,000.00 2,996,331.00 3,000,000.00 0.700 14 0.700 1/15/2026 Local Agency Investment Funds
Medium Term Notes
84 Investment Portfolio Detail
Fiscal Year 2025 - 2026
December 1 - December 31, 2025
CUSIP / Investment # Issuer Purchase Date Par Value Market Value Book Value Stated Rate Days to Maturity YTM/C Maturity Date 48133MAB6 JP Morgan 8/15/2022 1,000, 000.00 1,000,766.00 1,000,000.00 4.200 589 4.200 8/13/2027 48128G4X5 JP Morgan 8/30/2021 1,000, 000.00 976,526.00 1,000,000.00 1.200 239 1.200 8/28/2026 48128G4X5 JP Morgan 8/30/2021 1,000, 000.00 976,526.00 1,000,000.00 1.200 239 1.200 8/28/2026 53961LAF6 Local Initiatives S upport 1/28/ 2021 1,510,000.00 1,507,627.79 1,510,000.00 0.950 14 0.950 1/15/2026 91282CLS8 U.S. Treasury 11/26/2024 5, 000,000.00 5,021,405.00 4,993,947.53 4.125 303 4.277 10/31/2026 $469,144,002.19 $467,618,613.21 $468,950,781.91
Treasury Coupon Securities
85 Monthly Investment Activities
Investment Purchases
No Date Transaction CUSIP Investment Security Type Par Amount Investment
Yield to
Maturity
Maturity
12/2/2025 Purchase CAMP 1,000,000.00
12/3/2025 Purchase CAMP 19,000,000.00
12/29/2025 Purchase CAMP 42,000,000.00
12/31/2025 Purchase CAMP 15,000,000.00
Total Purchases 77,000,000.00$
Investment Maturities, Calls & Sales
No Date Transaction CUSIP Investment Security Type Par Amount Investment
Yield to
Maturity
Maturity
12/19/2025 Redemption CAMP 2,000,000.00
12/27/2029 Call 3134GXTE4 Federal Home Loan Mtg Corp 1,000,000.00 4.000 5/27/2027 12/29/2025 Call 3130ASFQ7 Federal Home Loan Bank 1,000,000.00 4.006 6/29/2027 12/23/2025 Call 3130B4B42 Federal Home Loan Bank 5,000,000.00 4.643 12/23/2027 12/30/2025 Maturit
y 3130AKLL8 Federal Home Loan Bank 2,000,000.00 0.500 12/30/2025 12/30/2025 Call 3133ERQ20 Federal Farm Credit Bank 10,000,000.00 4.630 12/30/2027 Total Maturities, Calls & Sales 21,000,000.00$
86 CITY COUNCIL AGENDA REPORT

INFORMATION/CONSENT AGENDA
AGENDA ITEM NO. L.3

DATE: February 3, 2026

TO: City Council

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Second Amendment to Envision VTA FD Auto, LLC, dba Envision Ford Lincoln Oxnard Agreement 32500315 for Automotive Mechanical Inspection, Maintenance, and Repairs.

RECOMMENDATION

That the City Council approve and authorize the Mayor to execute a Second Amendment to Fleet Services Agreement 32500315 with Envision VTA FD Auto, LLC, dba Envision Ford Lincoln Oxnard in the amount of $200,000, for a new not-to-exceed agreement value of $340,000 for automotive parts, diagnosis, services, and warranty repairs.

(This item did not originate in Committee.)

BACKGROUND

The Fleet Services Division of the Public Works Department (Fleet) is responsible for managing and maintaining the City’s fleet of 975 vehicles and equipment, which had a combined value exceeding $60 million as of December 15, 2025.

The fleet includes 362 Ford automobiles and trucks. While Fleet Services conducts the majority of routine maintenance and repair work in-house, the City requires an external vendor to provide as-needed diagnostic services, repairs, and overflow maintenance to ensure minimal vehicle downtime. Certain diagnostic services also require specialized equipment not currently owned by the City.

Approximately 37 percent of the City’s fleet consists of Ford vehicles. The Oxnard Police Department’s pursuit fleet is predominantly Ford Police Interceptor Utility vehicles, and the Fire Department operates 94 Ford units. These public safety vehicles are in continuous operation 24 hours a day, seven days a week, and therefore require frequent and reliable maintenance and repairs. Access to Ford original equipment manufacturer (OEM) parts, repairs, and diagnostic services allows Fleet Services to efficiently perform maintenance and ensure that warranty work and specialized repairs can be completed through the City’s authorized local dealer, Envision Ford, under Fleet Services’ direction.

Agreement 32500315 was executed between the City and Envision VTA FD Auto, LLC, doing business as Envision Ford Lincoln Oxnard (Envision Ford), and approved by the City Manager for an initial one-year term from December 23, 2024, through December 22, 2025, in an amount not to exceed $140,000, with one optional one-year extension. The First Amendment, exercising the optional one-year extension, was executed on October 27, 2025, extending the agreement term through December 22, 2026.

In accordance with City Purchasing Policy, agreements may be awarded without competitive bidding when only a single source is available to provide the required products or services.

DISCUSSION

Since the implementation of the agreement, approximately 70 percent of the contract funds have been expended. Due to the aging fleet, increasing average repair costs per vehicle, and fluctuations in repair demand, Fleet Services recommends increasing the contract capacity by $200,000, for a revised not-to-exceed amount of $340,000. Based on current 87 projections, this increase would help ensure timely repairs and continued availability of critical emergency service vehicles, including public safety vehicles, through the remainder of the extension term ending December 22, 2026.

STRATEGIC PRIORITIES

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

FINANCIAL IMPACT

The total cost for this Second Amendment with Envision Ford shall not exceed $200,000 through December 22, 2026.

There are sufficient funds in the Fleet Services Fund (741) in the City Council-approved FY 2025-26 Operating Budget.

Subsequent fiscal year funding will be requested in the annual budget process.

Estimated Spending Plan

ACCOUNT NUMBER
FY 2025-26
5 mo (Feb-Jun)
FY 2026-27
6 mo (Jul-Dec) TOTAL
Fleet Repair Parts 7413750-52110 $60,000 $60,000 $120,000 Fleet Veh. Maint. 7413750-55030 $30,000 $30,000 $60,000 Wastewater Coll. Veh. Maint 6113613-55030 $0 $10,000 $10,000 Wastewater Maint. Veh. Maint. 6113615-55030 $0 $10,000 $10,000 TOTAL $90,000 $110,000 $200,000

COMMITTEE OUTCOME

This item did not originate in Committee per the City Council Committee Bylaws Resolution 15,851, Article II, Section D.3.h as this is a routine and recurring maintenance item necessary to keep public facilities operable that has a financial impact under $500,000.

Prepared by: Brian Yanez, Assistant Public Works Director, Jose Arreola, Fleet Services Manager

ATTACHMENTS

1. Second Amendment

2. Original Agreement and First Amendment

88 S
ECOND AMENDMENT TO FLEET MAINTENANCE SERVICE AGREEMENT (V-01-17-19) Agreement No. 32500315
S

ECOND AMENDMENT TO FLEET MAINTENANCE SERVICE AGREEMENT
Th
is Second Amendment (“Second Amendment”) to the fleet maintenance service agreement (“Agreement”) is made and entered into in the County of Ventura, State of California, this ______ day of __________, 2026, by and between the City of Oxnard, a municipal corporation (“City”), and Envision Ventura Ford Auto, LLC dba Envision Ford Lincoln Oxnard (“Service Provider”). This Second Amendment amends the Agreement entered into on December 23, 2024, by City and Service Provider. The Agreement previously has been amended on October 27, 2025, by a First Amendment.

ECITALS
C
ity and Service Provider agree as follows:

W
HEREAS, the agreement was recently extended for one year pursuant to the terms of the agreement set forth in Section 4.

W
HEREAS, it is necessary to increase the not-to-exceed amount of the agreement to allow for the continued maintenance and repairs of the City’s Fleet.

N
OW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties agree to amend the Original Agreement as set forth in this Amendment.

1. Th
e amount in Section 5 of the Agreement is hereby amended to “The amount of this Agreement shall not exceed $340,000.00 for the entire term.”

2. A
s so amended, the Agreement remains in full force and effect. [
Signatures on next page]

Page 1 of 2 ends

89 Agreement No. 32500315
SECOND AMENDMENT TO FLEET MAINTENANCE SERVICE AGREEMENT (V-01-17-19) IN
WITNESS WHEREOF, the parties hereto have executed the Amendment on the date first written above.

CIT

Y OF OXNARD ENVISION VENTURA FORD AUTO, LLC

DBA ENVISION FORD LINCOLN OXNARD
☐Luis A. Mc Arthur, Mayor1 Date Nemer Sarriedine Date ☐Libertad Macias, Purchasing Agent 2 General Manager Ver onica Guerrero Date
Business Manager 3
ATTEST:

Lourdes A. López, City Clerk Date
(only if Mayor signs)
APP
ROVED AS TO FORM:

Stephen M. Fischer, Date
City Attorney (always required)
1 The City Council must authorize and the Mayor must execute any agreement over $220,000. 2 The Purchasing Agent may execute any authorized agreement up to $220,000. 3 The City requires the following for any contract:
● For a corporation, the signatures of the Board President, CEO or Vice President and of the Board Secretary, Assistant Secretary, CFO or Assistant Treasurer;
● For an LLC, the signatures of at least two managers of the LLC (company directors, not lower -level managers); or ● For a partnership, the signature of a partner. If the partnership is a limited partnership, the signer must be a general partner.

If the company has a different structure, or if the above-listed persons are not the appropriate signers, please submit to the City Attorney legally-binding documentation stating who can sign and bind your company.

Page 2 of 2 ends

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101

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.1

DATE: February 3, 2026

TO: City Council

FROM: Brenda Lopez, Housing Director, (805) 385-8092, [email protected]

SUBJECT: Resolution Establishing Administrative Regulations regarding the Fair Rate of Return Petition Regulations to Implement the City’s Rent Stabilization Ordinance.

RECOMMENDATION

That the City Council review and approve the proposed resolution establishing administrative regulations to implement the provisions of the Rent Stabilization Ordinance regarding Fair Rate of Return Petition regulation.

Please click the following link to view the required Measure M pre-recorded presentation: https://youtu.be/BalPHsk-Kw4

BACKGROUND

EXECUTIVE SUMMARY

The Fair Rate of Return Petition Regulations (Regulations) were first presented on March 25, 2025, to the Community Services, Public Safety, and Housing & Economic Development Committee (Committee). Following Committee staff worked closely with CAUSE, Attorney at Law Barbara Macri-Ortiz, and the Ventura County Association of Realtors (community stakeholders) to revise the regulations and achieve compromise and consensus. The revised Regulations were provided to the stakeholders October 20, 2025, published for Committee on January 6, 2026 and presented to Committee on January 13, 2026. The day prior to the January 13th meeting Attorney Barbara Macri-Ortiz requested seven revisions to the proposed Regulations. At Committee, staff recommended discussing each requested revision. There was active dialogue between Committee members, community stakeholders, and staff. Ultimately, two of the seven revisions were recommended for Council approval. The revisions are described in the Discussion section of this staff report.

Based on the discussion at Committee, it is important to provide clarity on the purpose of a Fair Rate of Return Petition (Petition). Rent Stabilized Jurisdictions must provide an opportunity for a Landlord to receive a Fair Return on their property. The Petition process ensures that cities do not encroach on a Landlord’s constitutional right to a Fair Return.

The Petition allows for Landlords to request a rent increase that is above the City of Oxnard’s rent limit of 4%, should they provide sufficient documentation and prove that the standard increase of 4% would not allow them to receive a “fair and reasonable return” on their property. As such, the Petition process is extensive, and requires substantial documentation, including the landlord’s financial data (income vs. their expenses), to demonstrate that the Landlord is operating and facing undue financial hardship. A successful Petition request results in a one-time rent increase. In the following year, the landlord is again subject to the 4% annual rent increase limit. While a Petition may be submitted annually, once a Petition has been approved, rents are considered aligned to provide a fair rate of return. Accordingly, any subsequent Petition would require the landlord to demonstrate a substantial change in operating expenses sufficient to establish that a 4% increase would not yield a “fair and reasonable return” on the property.

102

BACKGROUND

On April 13, 2022, City Council approved the Just Cause Evictions and Tenant Protection (Just Cause) and Rent Stabilization Ordinances, which became effective on June 2, 2022. Key elements of the enacted ordinances include the limitation of annual rent increases, for specified properties to 4%, a mandate regarding tenant relocation assistance in cases of no-fault evictions of $5,000 or two months of rent, whichever, is greater, and the authorization for the city to enforce the ordinances through civil citations, misdemeanor prosecutions or civil injunction. Ordinance amendments were passed by City Council on January 25, 2024, and July 30, 2024, to provide additional tenant protections and provide clarifications on the Ordinances. On March 25, 2025, staff introduced amendments to the Just Cause Ordinance and four administrative regulations applicable to the Just Cause and Rent Stabilization Ordinances to the Community Services, Public Safety, Housing & Development Committee (“Committee”). The intent of the administrative regulations is to provide clarity, while the proposed amendments closed loopholes making it easier for tenants, landlords, and City staff to implement the ordinances.

At that meeting, staff received input from the Committee, public, and various community stakeholders. There were a number of changes discussed to the ordinance and regulations, which are further described below. Based on the feedback received, consensus was reached on the proposed ordinance amendments and three of the four administrative regulations: (1) Registration, (2) Right of First Refusal, and (3) Ellis Act regulations went forward and were approved by City Council on April 29, 2025. Staff did not advance the Fair Rate of Return Petition Regulations, which was referred to as Exhibit B in the March 25, 2025 agenda item. Instead, staff proposed to collaborate with community stakeholders to further refine the regulation and bring it back to Committee at a later date.

In the months following the March 25th Committee meeting, staff worked closely with CAUSE, Attorney at Law Barbara Macri-Ortiz, and the Ventura County Association of Realtors (community stakeholders) to revise the regulations and achieve compromise and consensus. This process included online meetings with the community stakeholders on April 18, 2025, and July 17, 2025, each lasting several hours, ongoing internal staff meetings, and follow-up dialogue with the community stakeholders. This process continued through October, at which time common understanding and compromise was achieved.

The revised Regulations were provided to the stakeholders on October 20, 2025 and presented to the Committee on January 13, 2026. The day prior to the January 13th Committee meeting Attorney Barbara Macri-Ortiz requested seven revisions to the Regulations. Staff recommended discussing each requested revision as presented in detail at Committee with active dialogue between Committee members, community stakeholders, and staff. Ultimately, two of the seven revisions were recommended for Council approval. In addition, as a result of the active dialogue, staff determined that an additional revision—specifically, the inclusion of clarifying language—was necessary for the Section. 1.07- Hardship Appeal.

The Committee recommended moving forward with the Regulations, subject to the three additional revisions.

DISCUSSION

Adoption of Fair Rate of Return Petition Regulations

As discussed earlier, a Fair Rate of Return is different from Rent Stabilization. The State enacted Rent Stabilization via AB1482 in 2019, which was later incorporated into the State Civil Code 1947.12. Rent Stabilization applies to specific units, and protects tenants from excessive rent hikes and stabilizes housing costs, by limiting rent increases to a fixed percentage. Oxnard’s Rent Stabilization ordinance restricts rent increases to no more than 4%, annually. A Fair Rate of Return Petition is an exception to Rent Stabilization rent cap, and applies to a specific property. In Oxnard, the Petition is owner driven (not automatic), allowing a landlord to petition for a rent increase above the 4% maximum annual increase when they can prove the standard increase doesn't allow for a "fair and reasonable return" on their investment. The landlord must submit detailed financial data (income vs. expenses) to the City, proving they are operating at a loss or facing undue financial burden. The Regulations before the Council are intended to clarify the Petition process by which a landlord may petition for a rent increase above the 4% maximum annual increase, and are distinct from Rent Stabilization.

During the past three years, staff have observed emerging issues that hinder the effectiveness of the Rent Stabilization 103
Ordinance (Ord. No. 3013), specifically, the Fair Rate of Return Petition process. In response, staff recommends enacting the Fair Rate of Return Petition Regulations to create consistency for all applications received and establish a clear process for processing Fair Rate of Return Petitions which will benefit both tenants and landlords. Since 2022, eight Petitions, affecting 218 units, have been filed with the City, two have been successful, which impacted a total of five units, four petitions were withdrawn involving 188 units, and two petitions are currently pending that may impact a total of 25 units.

Changes to Fair Rate of Return Petition Regulations:

During the March 25, 2025 Committee meeting, the community stakeholders identified drafting errors throughout the entire Fair Rate of Return Petition Regulations Exhibit, which were corrected. Additionally, clarification was requested regarding the usage of the Consumer Price Index “Inflation” for the region of Anaheim-Los Angeles versus a closer region. Staff clarified that the state does not provide such a number for the City of Oxnard or Ventura County and as such staff utilized the closest region that fit our city's demographics. In order to simplify and create consistency throughout the regulation, Staff renamed the Regulation Fair Rate of Return Petition Regulations, to create conformity and clarity throughout the document, and all supporting documents (attachments).

Based on the collaborative discussion between staff and community stakeholders, revised Fair Rate of Return Petition Regulations were presented to the Committee on January 13, 2026. The highlights of the revisions between March 2025 - through the January 2026 Committee meeting are summarized below, and incorporated into Attachments 1 & 2:

1. Regulation 1.02: Definitions
-Section 4 and 6: added language to define timeframe (base year). -Section 7: added language which expands the definition of operating income and added detailed steps on how to determine a fair return.

2. Regulation 1.03: Petition, Initial Petition Review; Petitioner Payment of Costs -Section 1(b): added details on what a financial report should demonstrate and added a clause which gives the presiding Hearing Officer the ability to request additional supporting information needed to make a determination. -Section 1(c) and Section 2(a): the original language specified dates by which an owner must provide a copy of the petition submitted to the City for review to the tenant(s). The dates were based on the date of submission. This inferred that the petition submitted is “complete” and therefore, that the tenant received all of the relevant information and set up an expectation on when a decision would be rendered. Since petitions are usually incomplete the language was modified to ensure that the tenant receives a copy of the complete petition and provides a better timeframe on when a response can be expected.
-Section 3: new language was added to detail timeframes for a withdrawal of petition (cancellation of a hearing) to be filed by an owner in order to avoid cancellation charges for fees incurred by the City. -Section 4: section was revamped to outline what documentation is needed for a petition to be considered complete and establishes timelines.

Typo 1 pursuant to January 13, 2026 committee meeting:
-Section 4(a): the following typo was corrected “…in Regulation 1.03 section 1, subsections (a) through (d) (c).”

3. Regulation 1.04: Decision by Hearing Officer
-Further expands on Regulation 1.03, Sections 1 through 3 updated to thoroughly outline the Hearing Officer’s and the City’s timeframe for deeming the Fair Rate of Return Petition complete and the timeframe to issue a decision.

Typo 2 pursuant to January 13, 2026 committee meeting:
- Section 1.04(2)(a) the first word was corrected to read “No” as it read “O”.

4. Regulation 1.05: Amortization of Capital Improvement Costs Revision pursuant to January 13, 2026 committee meeting:

This section was reformatted to fix indentation errors caused by wrapped text to properly reflect which costs fall under each major category.

5. Regulation 1.07: Hardship Appeal (originally titled Limitation on Rent Increases Granted Under this Part) -The original naming convention for this section caused confusion. It was simplified and renamed “Hardship Appeal”. In addition, language was added informing low or moderate income households of the timeline, documentation, and steps to file a claim of severe economic hardship resulting from an approved rent increase.

Revision pursuant pursuant to January 13, 2026 committee meeting:

Language was added throughout this section to provide clarification regarding what documentation will be distributed to the owner and the tenant and within which timeframe.
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Attachment 1 is a redline copy of the corrections made and Attachment 2 is a clean copy.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

There is no financial impact.

COMMITTEE OUTCOME

The Community Services, Public Safety, and Housing & Economic Development Committee approved 3-0 on January 13, 2026, to approve the staff recommendation, with modifications, and to forward the item for Council approval.

Please click here to view the March 25, 2025, Community Services, Public Safety, and Housing & Economic Development Committee.

Please click here to view the January 13, 2026, Community Services, Public Safety, and Housing & Economic Development Committee.

Prepared by: Brenda Lopez, Housing Director

ATTACHMENTS

1. Attachment 1- Redline Copy_Fair Rate of Return Petition

2. Attachment 2 - Clean Copy_Fair Rate of Return Petition Regulation Final

3. Attachment 3 - Fair Rate of Return Resolution

4. Attachment 4- Presentation

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EXHIBIT DB
Part 1: Fair Rate of Return Petition RegulationsPetition by Owner for Rent Increase to Achieve a Fair Return Regulation 1.01. Purpose

1. Pursuant to Oxnard City Code Section 27 -23, a rental property owner Under Rent Stabilization Ordinance Section 27 -23, an owner may petition the city for an increase in rents, so that the owner may obtain “a fair and reasonable return.” The Petition for Fair Rate of Return process stated in section 27 -23 and further defined by these regulations are ordinance provides for this process in conformity with the California Supreme Court’s opinion in Birkenfeld v. City of Berkeley . but sets forth no standard by which an owner’s receipt, or nonreceipt, of a fair return is to be determined.

2. This regulation works in conjunction with the Section 27-23 of Chapter 27 of the Oxnard City Code as follows: fills in this gap left by Rent Stabilization Ordinance Section 27-23 in the following two ways:
a. EIt establishes the formula that must be used by the City Manager, or their designee, to determine whether a petitioning owner is receiving a fair and reasonable return; and
b. EIt establishes a mandatory petition and decision-making process.

Regulation 1.02. Definitions

1. Base Year. “Base year” means 12-month period preceding May 2022.

2. Current Year. “Current year” means the 12-month period preceding the date on which the owner files a Fair Rate of Return Petition with the city.

3. Fair and Reasonable Return. A “fair and reasonable return” means an increase in the owner’s net operating income as of the current year equal to 100 percent of the percentage increase in the Consumer Price Index for All Urban Consumers in the Los Angeles -Long Beach- Anaheim area over the owner’s net operating income for the base year. (For example, if the Consumer Price Index has increased by ten percent since the base year, the owner receives a fair and reasonable return if the owner’s net operating income for the current year has also increased by at least ten percent above the base year level). a. Net operating income generated by a property in the base year is presumed to have generated a fair and reasonable return because rents established that year were established by the owner free of substantial limitations beyond market forces. b. A petitioning owner may rebut the presumption that base year net operating income generated a fair return by submitting with his or her Fair Rate of Return Petition proof by a preponderance of evid ence that the net operating income yielded in the base year did not generate a fair rate of return. Base year net operating expense may be found to not to have generated a fair rate of return only if:

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i. The landlord’s operating and maintenance expenses in the base year were unusual in comparison to other years, in which case base year operating expenses shall be adjusted to reflect average expenses for the property over a reasonable period or, in the d iscretion of the City Manager or his or her designee, another year shall be designated the base year for purposes of the Fair Rate of Return petition. In considering whether the base year operating and maintenance expenses were unusual, the City Manager or their designee shall consider the following factors:

1. Whether the owner made substantial capital improvements during the base year that were not reflected in the base year rent levels;

2. Whether substantial and necessary repairs were made due to damage caused by uninsured disaster or vandalism; or

3. Whether other expenses were unreasonably high or low, notwithstanding prudent business practice.
ii. The property’s rental income for t he base year was disproportionately low.

Under this circumstance, the City Manager or his or her designee shall designate the Fair Rate of Return Petition a “Vega Petition” and shall follow the procedures set forth herein in Regulation 1.06. In accordance with the Under the California Court of Appeal opinion Vega v City of West Hollywood, such a petition for a rent increase may be granted only if base year rents were disproportionately low because:

1. Tthere existed between the tenant and the owner a family relationship or close friendship;

2. Tthe rent had not been increased for several years prior to the base datebasedate while rents in the community generally were increased;

3. Tthe tenant or tenants performed services for the owner;

4. Tthere was low maintenance of the property by the owner in exchange for low rent increases or no rent increases; or

5. Tthere existed any other special circumstances which affected the rent level outside of market factors.

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c. Income from services provided at the property, such as coin -operated laundry machines and the like, plus
d. All other income or consideration received or receivable for or in connection with the use or occupancy of rental units and housing services, minus e. Uncollected rents due to vacancy and bad debts, to the extent that they are beyond the owner’s control and the owner has made a good-faith attempt to collect them.

5. Hearing Officer. “Hearing Officer” means the City Manager or their designee.

6. Operating Expenses. “Operating expenses” means the total of all factors affecting expenses included in Rent Stabilization Ordinance Section 27 -23(c) and paragraph (a) of this subdivision within the timeframe of the Current Year which is the 12 -month period preceding the date on which the owner files a Fair Rate of Return Petition with the city but shall not include any expense included in paragraph (b) of this subdivision. a. Included expenses are:
i. Fair Rate of Return Petition application fee, if the petition is found to be meritorious;
ii. Annual program fee;
iii. License fees, real property taxes, utility costs, insurance; iv. Normal repair and maintenance expenses, which shall include, but not be limited to, painting, normal cleaning, fumigation, landscaping, repair and replacement of all standard services, including electrical, plumbing, carpentry, furnished appliances, dr apes, carpets and furniture. Owner - performed labor, like other labor, shall be included only to the extent that it is charged at fair market value for such labor;
v. The cost of repairs the need for which was not caused by ordinary wear and tear and was not caused by deferred maintenance;
vi. Allowable legal expenses, and management expenses (contracted or owner performed), including necessary and reasonable advertising, accounting, and other managerial expenses. Allowable legal expenses and mManagement expenses are presumed to be six perce nt of gross income ., unless established otherwise. Allowable legal and Mmanagement expenses in excess of eight percent of gross income are presumed to be unreasonable and shall not be allowed unless it is established that such expenses are reasonable and do not exceed those ordinarily charged by commercial management firms for similar residential properties;
vii. Attorney’s fees and costs incurred in connection with successful good faith attempts to recover rents owing and successful good faith unlawful detainer actions not in violation of applicable law, to the extent that such fees and costs cannot be recovered from tenants;
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viii. Building improvements, major repairs, replacement and maintenance, unless such costs are compensated by insurance proceeds. These costs shall not be included in their entirety as a given year’s ex pense, but shall be amortized as provided in Regulation 1.05
ix. The expenses for experts and city review allowed under Rent Stabilization Ordinance 27-23(B) and actually paid by the owner.
b. Excluded expenses are:
i. Maintenance and repair work which resulted from the intentional deferral of other repairs or work, which deferral caused significant deterioration of the building, any of its amenities, or individual units;
ii. Avoidable and unnecessary expense increases since the base year; iii. Mortgage interest and principal payments and other payments , excluding any such payments that are not contractually necessary, such as double payments, and excluding any payment that results from financing that is unreasonable or that was unn ecessary for the acquisition of the property at fair market value;
iv. Fees, other than fees expressly authorized by 1.02(6)(a)paragraph (1) of this subdivision;
v. Penalties and interest awarded for violation of the Rent Stabilization Ordinance or any other law;
vi. Legal fees not expressly allowed under paragraph 1.02(6)(a)(vi)paragraph (1) of this subdivision; and
vii. Depreciation of the property.

7. Net Operating Income . “Net Operating Income” means gross income minus operating expense.

Regulation 1.03: Petition; Initial Petition Review; Petitioner Payment of Costs a. In California, the maintenance of net operating income (“MNOI”) formula or standard is the most often used for determining a Fair R ate of Return Petition.

Courts have praised the MNOI standard for its fairness and ease of administration, and because it preserves for a property owner the net operating income prior to the adoption of rent control. Generally, this involves a three -step process. (To take a simple example, assume a landlord has a 10 rental unit building, the base rent year net operating income, as adjusted by inflation, was $100,000, and the NOI in the last twelve months was $98,000; the difference being $2000. The $2000 is divided first by 10 (the number of units in the building) and then by 12 (months), to yield $16.67. That would be the monthly rent increase to which the landlord would be entitled in order, under this formula, to receive a fair return.) i. Step one is the determination of the Base Rent Year, which is the year ending on the year the Ordinance was adopted.
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ii. Step two requires the calculation of the base rent year net operating income for 2022 as adjusted for inflation through the date of the notice of the rent increase.

iii. Step three involves the calculation of the difference between the base rent year net operating income, as adjusted for inflation, and the most recent 12 months of net operating income. That difference is then divided first by the number of rental units and then by twelve. That number represents what the landlord is entitled to as a rent increase in order to receive a fair return.

Regulation 1.03: Petition, Initial Petition Review; Petitioner Payment of Costs A petition for a rent increase must be on a form prescribed by the City Manager and must include all required documentationattachments, as well as an email address at which the Petitioner consents to receive service by the city of all communications and documents related to the petition. A petition that is not made on the form prescribed by the City Manager, is not completely filled in, or does not include all required attachments will not be accepted . Deficient F air Rate of Return Petitions , but will be promptly returned to the petitioner with an explanation of the defect. Pursuant to Oxnard City Code section 27 -23(B) OCC sec tion the 27-23(B) requires that the owner is responsible for all costs associated with the city’s review of the Fair Rate of Return Petition.

1. Required Fair Rate of Return Petition DocumentsAttachments. A petitioner must include with a submitted completed and signed Fair Rate of Return Petition form the following information:
a. Records, such as receipts and financial statements, establishing the base year gross income and base year operating ex penses, and demonstrating the base year net operating income;
b. Pursuant to Oxnard City Code Section 27 -23(A), and independent financial report, including verified financial data, that demonstrates the owner will not obtain a fair and reasonable return on their property.
i. The financial report should demonstrate that the r Records establishing base year and current year , such as receipts and financial statements, establishing the current year gross income and current year operating expenses show that under the cri teria set forth in Regulation 1.02, subdivision (3), the petitioning owner is entitled to an increase in rents in order to obtain a fair and reasonable return. , and demonstrating the current year net operating income.
ii. The Hearing Officer may request additional information from the Petitioner or Tenant to assist with determining whether or not there is a Fair Rate of Return Petition.
c. A financial report demonstrating that the records establishing base year and current year operating expenses show that, under the criteria set forth in Regulation 1.02, subdivision (3), the petitioning owner is entitled to an increase in rents in order to obtain a fair and reasonable return.
cd. Proof that the owner provided all affected tenants with the submittedcomplete petition, including all attachments. , on or within no more than two days before the 110

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date when the petition was submitted to the city.

2. Time for Initial Review. Upon receipt of a submittedcomplete Fair Rate of Return Petition form with all required attachments, the designated hearing officer shall:
a. Mail to all affected tenants a notice that the city has received a Fair Return Petition and informing them that they have until 30 days from the date when the ow ner served the tenant with a copy of the petition to respond to that petition, including by providing the city with additional materials, if they wish to contest the petition; ab. Determine whether it will be necessary for the city to employ any independent experts in order to reach a final decision about whether the owner is entitled to a rent increase and in what amount;
bc. Within no more than 7 days from receipt of the petition form with all required attachments, inform the petitioner of the city’s anticipated costs of reviewing, analyzing, and deciding the petition and the employment of any expert necessary to complete those things. If the city does not within 7 days in form the petitioner of anticipated costs of reviewing, analyzing, and deciding the petition, then such costs shall be deemed unnecessary.

3. Petitioner Payment of Estimated Costs. Within no more than 15 days of the city delivering the estimated costs to the petitioner, the petitioner must make payment to the city in the amount of the estimated costs.
a. Withdrawal of Petition. The landlord shall inform the city at least 5 days before the scheduled hearing date of the landlord’s intent to withdraw the petition. If the landlord fails to inform the city at least 5 days before the scheduled hearing date of the landlord’s intent to withdraw the petition, then the landlord will be responsible for the following costs.
i. Translator: Any cancellation must occur at least 48 hours prior to the scheduled hearing to avoid a cancellation charge.
ii. Court Reporter:. Any cancella tion must occur at least 48 hours prior to the scheduled hearing to avoid a cancellation charge.
iii. Hearing Officer: Any cancellation must occur at least 48 hours prior to the scheduled hearing to avoid a cancellation charge.

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subsections (a) through ( cd) and the following document: (i) copies of all written rental agreements in effect during this period; (ii) a spreadsheet demonstrating actual income; (iii) a spreadsheet demonstrating actual expenses; (iv) documentation to substantiate all claimed expenses (which demonstrates actual payment and a relationship to the property); (v), an independent financial report; sixth, the proposed rent increase(s).
b. A detailed description, including the date timelines, of all required supporting documents for a complete Fair Rate of Return Petition application can be found on page 5 of 8 of the Fair Rate of Return PetitionApplication Packet. If required documentation or information is missing, the City will contact the landlord and request the missing documentation or information. The landlord will have 14 days to provide the missing documentation or information, or the landlord’s Fair Rate of Return Petition may be dismissed unless, within 14 days of such request, the city informs the petitioner of anticipated costs fo r reviewing, analyzing, and deciding the petition. In the latter case, the petition shall be deemed complete when all information and supporting documents are provided AND such costs are fully paid to the city.

5. The city will take no action on the petition, other than those specified in subdivision (2) of this regulation, until the petition is deemed complete. a. Upon receipt of a deemed complete Fair Rate of Return Petition form with all required documents, the Hearing Officer shall mail a notice to all affected tenants noticing that the city has received a Fair Rate of Return Petition informing the tenants they have 30 days from the date upon which the Ci ty provides notice that the petition submission is deemed complete, to respond to the petition, and provide the city with additional materials, if they wish to use to contest the petition. Tenants are not entitled to any confidential landlord or property owner information. b. The City shall send out a Notice of Hearing that includes the date, time, location and or video conference link for the Fair Rate of Return Petition Hearing.

Regulation 1.04: Decision by Hearing Officer
As specified by Rent Stabilization Ordinance 27-23, a decision about whether to grant an increase in rents as requested in a Fair Rate of Return Petition shall be made by the City Manager or his or her designee, referred to within this Part IV of these Regulations as “Hearing Officer.”

1. Time for Decision. The Hearing Officer shall issue a written decision granting or denying the petition within 60 days of the date when the petition is deemed complete under Regulation 1.03, subdivision (4), unless for good cause shown, the Hearing Officer extends the time for issuance of the decision.

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tenants. Such tenant submission shall be deemed received by the petitioner on the day that the Hearing Officer sends it.
b. Within 5 days of receipt of submission from the Hearing Officer of any tenant submission, the petitioner may reply to such submission. The Hearing Officer shall forward any such reply to the affected tenants at an email address provided by such tenants for that purpose or, if no email address is provided, to the tenants’ address by first class mail. There shall be no right of rebuttal or other reply by affected tenants after the reply brief has been submitted. Any further reply shall be presented orally at the hearing.
c. If the Hearing Officer it has been determinesd that it is necessary to engage the services of an expert, the Hearing Officer shall engage that expert without undue delay, and in no event later than 10 days after the date the petitioner has paid the costs as described in Regulation 1.03. when the petition is deemed complete. The Hearing Officer shall require that the expert provide their written opinion within 14 business days of the expert ’s engagement. If required the Hearing Officer should issue a notice of continued hearing to the petitioner and the tenants to allow for additional time for the expert review. no more than an additional 14 days. d. The Hearing Officer shall require that the expert submit their opinion in an electronic format suitable for distribution by email.
e. The Hearing Officer shall immediately send to the petitioner at the email address provided in the petition, and via first class mail or email to all affected tenants, and their representative, if any, a copy of the expert’s opinion, to which the petit ioner and tenants shall have 14 days to respond if they wish to do so. f. The hearing officer shall make their decision based only on the written submissions of the parties, the written opinions of any expert designated by the city after initial review of the petition, timely -submitted responses to such submissions and opinions, a hearing involving both the owner and tenant where both the owner and the tenant can only provide statements directly to the Hearing Officer but cannot cross examine each other, and any relevant public records maintained by any government entity or agency.
g. In addition to sending their decision to all affected parties by email, the Hearing Officer shall convey the decision by first class mail with proof of mailing. At the hearing, the landlord will testify in a narrative fashion and will answer questions from the Hearing Officer, if any arise. The tenant will be afforded the opportunity to provide narrative testimony that the landlord may rebut within the time limits allowed by the hearing Officer for Testimony.
h. After the Hearing Officer has prepared the decision, they shall email the final decision to the City. The City shall serve the decision by first -class mail to the parties.

3. Standards for Decision. The Hearing Officer shall grant a Fair Rate of Return Petition only if the petitioning owner demonstrates that their current year net operating income does not equal at least the base year net operating incomeexpense plus 100% of the change in the Consumer Price Index since the end of the base year.
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4. Challenge to Decision. A decision of the Hearing Officer granting or denying a Fair Rate of Return Petition may be challenged by writ of administrative mandamus. a. If a writ is not filed within 90 days of the Hearing Officer granting or denying a Fair Rate of Return Petition, the decision of the Hearing Officer is final.

5. Initiating a Rent Increase. A landlord may only initiate an authorized rent increase after the Hearing Officer’s decision has become final including through the disposition of a Writ proceeding. However, no rent increase authorized as the result of a successful Fair Return petition may be imposed until the owner complies with all state and local noticing requirements.

Regulation 1.05: Amortization of Capital Improvement Costs

1. In amortizing capital improvements, the following schedule shall be used to determine the amortization period of the capital improvement:

Improvement Years
Air conditioning or heating system 10
Other appliances
Refrigerator 5
Stove 5
Garbage disposal 5
Water heater 5
Dishwasher 5
Microwave oven 5
Washer/dryer 5
Fans 6
Cabinets 10
Miscellaneous carpentry 10
Countertops 10
Doors 10
Knobs 5
Screen doors 5
*
*Schedule was reformatted to
align categories, subcategories,
and year column
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Earthquake expenses
Architect/Engineer fees 5
Emergency services 5
Clean-up 5
Fencing and security 5
Management 5
Tenant assistance 5
Structural repair or retrofitting
Foundation repair 10
Foundation replacement 20
Foundation bolting 20
Iron or steel work 20
Masonry/chimney repair 20
Shear wall installation 10
Electrical wiring 10
Elevator 20
Fencing and gates
Chain link 10
Masonry 10
Wood 10
Wrought iron 25
Fire alarm system 10
Fire sprinkler system 20
Fire escape 10
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Flooring/floor covering
Hardwood 10
Tile or Linoleum 5
Carpet 5
Carpet Pad 5
Subfloor 10
Fumigation tenting 5
Glass
Windows 5
Doors 5
Mirrors 5
Insulation 10
Landscaping
Planting 10
Sprinklers 10
Tree replacement 10
Lighting (interior or exterior) 10
Locks 5
Mailboxes 10
Meters 10
Plumbing
Fixtures 10
Pipe replacement 10
Re-pipe entire building 20
Shower doors 5
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Paint 5
Paving or decking 10
Plastering 10
Railings 10
Roofing 10
Security systems or installations 10
Sidewalks and walkways 10
Stairs 10
Stucco 10
Sump pump 10
Tile work 10
Wallpaper 5
Window coverings 5

2. The costs of capital improvements shall be included in the calculation of a given year’s operating expenses, and included in the calculation of any increase in each affected unit’s monthly rent, according to the following formula: the total cost, divided by the amortization period, divided by 12.

3. Rent increases authorized pursuant to this section shall be allocated as follows:
a. Rent increases for unit-specific capital improvements shall be allocated to that unit; b. Rent increases for building -wide or common area capital improvements shall be allocated equally among all units;
c. Rent increases resulting from the Net Operati ng Income analysis shall be allocated equally among all units;
d. Notwithstanding the subsections above, the Hhearing Officer examiner or the Board, in the interests of justice, shall have the discretion to apportion the rent increases in a manner and to the degree necessary to ensure fairness. Such circumstances include, but are not limited to, units that are vacant or owner occupied.

Regulation 1.06 Rent Increase Based on Disproportionately Low Base Year Rents (Vega Petition)
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If the contents of a Fair Rate of Return petition make clear that the basis for the petition is that current rents cannot yield a fair return solely or principally because b ase year rents were disproportionately low under criteria set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii), and if the petition has been deemed complete, the hearing examiner shall rule on the petition using the following criteria:

1. The petitioning owner must prove by documentary evidence, and by a preponderance of evidence:
a. The level of fair market rents for units comparable to those as to which the petitioner seeks a rent increase. Units are comparable if they are in the same neighborhood of the city, of similar size, in substantially similar condition, and include substantially similar amenities; and
b. That base year rents for the property that is the subject of the petition were determined not by market criteria, but as the result of one or more of the factors set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii);

2. If the petitioner satisfies the criteria of subdivision (1) of this Regulation, the hearing officer shall grant the petition and shall adjust affected units rents according to the following formula:
a. Fair market rent for comparable units as of the base year plus 4% for each year since the base year during which the criteria set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii) continued to apply.
b. A 4% increase shall not be applied for any year after the base year during which the criteria set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii) did not apply and the current or previous owner did not apply the permitted 4% increase.

Regulation 1.07. Hardship Appeal Limitation on Rent Increases Granted under this Part

1. Any low- or moderate-income household shall have 30 days from the date when the hearing officer’s decision granting a rent increase is mailed to theto theinform the owner, tenant and the city, to inform the owner and the city that the authorized increase would cause a severe economic hardship. Th e Tenant's claimTenant’sat claim must be made in writing and must include: No rent increase authorized as the result of a successful Fair Return petition may be imposed unless the owner complies with all state and local noticing requirements;
a. Proof of the household’s low- or moderate-income status; b. Proof that the authorized rent increase would cause a severe economic hardship.

Economic hardship is severe if it would interfere either directly or indirectly with the household’s ability to remain housed or afford other basic necessities of life.

2. No monthly rent increase of more than the greater of 1 02%, twice the Employment Cost Index (ECI), or $100 shall be authorized for any unit occupied by a low - or moderate- income household if such an increase would result in severe economic hardship. a. The applicable figure for the ECI shall be the most recently reported calendar year 118

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figure as of the date when the petition was filed.
b. If the amount of a monthly rent increase affecting a low - or moderate -income household that would otherwise have been authorized as the result of a successful Fair Return petition would be greater than the limit specified in this subdivision (2), the full increase shall be granted over a period of years such that the increase is no greater than that limit in any given year.
c. Any low- or moderate-income household shall have 30 days from the date when the hearing officer’s decision granting a rent increase is mailed to inform the owner and the city that the authorized increase would cause a severe economic hardship. That claim must be made in writing and must include:
i. Proof of the household’s low- or moderate-income status; ii. Proof that the authorized rent increase would cause a severe economic hardship. Economic hardship is severe if it would interfere either directly or indirectly with the household’s ability to remain housed or afford other basic necessities of life.
3d. If tenants of a household make a claim of severe economic hardship, the owner shall not impose any rent increase affecting that household, other than any 4% increase generally permitted annually by the Rent Stabilization Ordinance, until the Hearing Officer rules on the tenants’ claim.
4e. If tenants of a household make a claim of severe economic hardship, the ownerpetitioner shall have ten days from the date that the owner is informed of the tenant’s made that written claim to file both the owner and the city to file with the city any written objection to the claim. Any such objection must include all relevant supporting evidence and shall be mailed to the tenant.
5f. The tenant shall have the burden to prove the existence of severe economic hardship by a preponderance of evidence.
6g. The Hhearing Officerexaminer shall rule on the claim of severe economic hardship within 30 days after the of the tenant’s claim havingwas provided to provided the claim to the owner, tenant and the city., and shall do so in the form of an addendum to the original decision.
7h. If the Hhearing Officerexaminer determines that the originally -determined rent increase would cause a severe economic hardship, the affected unit’s rent shall annually increase by the amount of the 5% permitted under the ECI plus any applicable 4% annual general adjustment until the unit’s rent reaches the level that it would have been under the original decision.
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Part 1: Fair Rate of Return Petition Regulations
Regulation 1.01. Purpose

1. Pursuant to Oxnard City Code Section 27-23, a rental property owner may petition the city for an increase in rents , so that the owner may obtain “a fair and reasonable return.” The Petition for Fair Rate of Return process stated in section 27-23 and further defined by these regulations are in conformity with the California Supreme Court’s opinion in Birkenfeld v.

City of Berkeley.

2. This regulation works in conjunction with the Section 27-23 of Chapter 27 of the Oxnard City Code as follows:
a. Establishes the formula that must be used by the City Manager, or their designee, to determine whether a petitioning owner is receiving a fair and reasonable return; and
b. Establishes a mandatory petition and decision-making process.

Regulation 1.02. Definitions

1. Base Year. “Base year” means 12-month period preceding May 2022.

2. Current Year. “Current year” means the 12-month period preceding the date on which the owner files a Fair Rate of Return Petition with the city.

3. Fair and Reasonable Return. A “fair and reasonable return” means an increase in the owner’s net operating income as of the current year equal to 100 percent of the percentage increase in the Consumer Price Index for All Urban Consumers in the Los Angeles -Long Beach-Anaheim area over the owner’s net operating income for the base year. (For example, if the Consumer Price Index has increased by ten percent since the base year, the owner receives a fair and reasonable return if the owner’s net operating income for the current year has also increased by at least ten percent above the base year level). a. Net operating income generated by a property in the base year is presumed to have generated a fair and reasonable return because rents established that year were established by the owner free of substantial limitations beyond market forces. b. A petitioning owner may rebut the presumption that base year net operating income generated a fair return by submitting with his or her Fair Rate of Return Petition proof by a preponderance of evidence that the net operating income yielded in the base year did not generate a fair rate of return. Base year net operating expense may be found to not to have generated a fair rate of return only if:
i. The landlord’s operating and maintenance expenses in the base year were unusual in comparison to other y ears, in which case base year operating expenses shall be adjusted to reflect average expenses for the property over a reasonable period or, in the discretion of the City Manager or his or her designee, another year shall be designated the base year for purposes of the Fair Rate of Return petition. In considering whether the base year operating 120

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and maintenance expenses were unusual, the City Manager or their designee shall consider the following factors:

1. Whether the owner made substantial capital imp rovements during the base year that were not reflected in the base year rent levels;

2. Whether substantial and necessary repairs were made due to damage caused by uninsured disaster or vandalism; or

3. Whether other expenses were unreasonably high or low, notwithstanding prudent business practice.
ii. The property’s rental income for t he base year was disproportionately low.

Under this circumstance, the City Manager or his or her designee shall designate the Fair Rate of Return Petition a “Vega Petition” and shall follow the procedures set forth herein in Regulation 1.06. In accordance with the California Court of Appeal opinion Vega v City of West Hollywood, such a petition for a rent increase may be granted only if base year rents were disproportionately low because:

1. There existed between the tenant and the owner a family relationship or close friendship;

2. The rent had not been increased for several years prior to the base date while rents in the community generally were increased;

3. The tenant or tenants performed services for the owner;

4. There was low maintenance of the property by the owner in exchange for low rent increases or no rent increases; or

5. There existed any other special circumstances which affected the rent level outside of market factors.

4. Gross Income. “Gross income” means:
a. Gross rents, computed on the basis of one hundred percent occupancy, with fair market rent attributed to any vacant unit, within the timeframe of the Current Year which is the 12 -month period preceding the date on which the owner files a Fair Rate of Return Petition with the city, plus
b. Interest from security and cleaning deposits (unless the interest is payable to the tenants), plus
c. Income from services provided at the property, such as coin -operated laundry machines and the like, plus
d. All other income or consideration received or receivable for or in connection with the use or occupancy of rental units and housing services, minus e. Uncollected rents due to vacancy and bad debts, to the extent that they are beyond 121

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the owner’s control and the owner has made a good-faith attempt to collect them.

5. Hearing Officer. “Hearing Officer” means the City Manager or their designee.

6. Operating Expenses. “Operating expenses” means the total of all factors affecting expenses included in Rent Stabilization Ordinance Section 27 -23(c) and paragraph (a) of this subdivision within the timeframe of the Current Year which is the 12 -month period preceding the date on which the owner files a Fair Rate of Return Petition with the city but shall not include any expense included in paragraph (b) of this subdivision. a. Included expenses are:
i. Fair Rate of Return Petition application fee, if the petition is found to be meritorious;
ii. Annual program fee;
iii. License fees, real property taxes, utility costs, insurance; iv. Normal repair and maintenance expenses, which shall include, but not be limited to, painting, normal cleaning, fumigation, landscaping, repair and replacement of all standard services, incl uding electrical, plumbing, carpentry, furnished appliances, drapes, carpets and furniture. Owner - performed labor, like other labor, shall be included only to the extent that it is charged at fair market value for such labor;
v. The cost of repairs the need for which was not caused by ordinary wear and tear and was not caused by deferred maintenance;
vi. Allowable legal expenses, and management expenses (contracted or owner performed), including necessary and reasonable advertising, accounting, and other managerial expenses. Allowable legal expenses and management expenses are presumed to be six percent of gross income .

Allowable legal and management expenses in excess of eight percent of gross income are presumed to be unreasonable and shall not be allowed unless it is established that such expenses are reasonable and do not exceed those ordinarily charged by commercial management firms for similar residential properties;
vii. Attorney’s fees and costs incurred in connection with successful good faith attempts to recover rents owing and successful good faith unlawful detainer actions not in violation of applicable law, to the extent that such fees and costs cannot be recovered from tenants;
viii. Building improvements, major repairs, replacement and maintenance, unless such costs are compensated by insurance proceeds. These costs shall not be included in their entirety as a given year’s expense, but shall be amortized as provided in Regulation 1.05;
ix. The expenses for experts and city review allowed under Rent Stabilization Ordinance 27-23(B) and actually paid by the owner.
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b. Excluded expenses are:
i. Maintenance and repair work which resulted from the intentional deferral of other repairs or work, which deferral caused significant deterioration of the building, any of its amenities, or individual units;
ii. Avoidable and unnecessary expense increases since the base year; iii. Mortgage interest and principal payments and other payments that are not contractually necessary, such as double payments, and any payment that results from financing that is unreasonable or that was unnecessary for the acquisition of the property at fair market value;
iv. Fees, other than fees expressly authorized by 1.02(6)(a) of this subdivision; v. Penalties and interest awarded for violation of the Rent Stabilization Ordinance or any other law;
vi. Legal fees not expressly allowed under paragraph 1.02(6)(a)(vi) of this subdivision; and
vii. Depreciation of the property.

7. Net Operating Income . “Net Operating Income” means gross income minus operating expense.
a. In California, the maintenance of net operating income (“MNOI”) formula or standard is the most often used for determining a Fair R ate of Return Petition.

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Regulation 1.03: Petition, Initial Petition Review; Petitioner Payment of Costs A petition for a rent increase must be on a form prescribed by the City Manager and must include all required documentation as well as an email address at which the Petitioner consents to receive service by the city of all communications and docu ments related to the petition. A petition that is not made on the form prescribed by the City Manager, is not completely filled in, or does not include all required attachments will not be accepted. Deficient Fair Rate of Return Petitions will be promptly returned to the petitioner with an explanation of the defect. Pursuant to Oxnard City Code section 27-23(B) the owner is responsible for all costs associated with the city’s review of the Fair Rate of Return Petition.

1. Required Fair Rate of Return Petition Documents. A petitioner must include with a submitted and signed Fair Rate of Return Petition form the following information:
a. Records, such as receipts and financial statements, establishing the base ye ar gross income and base year operating expenses, and demonstrating the base year net operating income;
b. Pursuant to Oxnard City Code Section 27-23(A), and independent financial report, including verified financial data, that demonstrates the owner will not obtain a fair and reasonable return on their property.
i. The financial report should demonstrate that the records establishing base year and current year operating expenses show that under the criteria set forth in Regulation 1.02, subdivision (3), the petitioning owner is entitled to an increase in rents in order to obtain a fair and reasonable return. ii. The Hearing Officer may request additional information from the Petitioner or Tenant to assist with determining whether or not there is a Fair Rate of Return Petition.
c. Proof that the owner provided all affected tenants with the submitted petition, including all attachments.

2. Time for Initial Review. Upon receipt of a submitted Fair Rate of Return Petition form with all required attachments, the designated hearing officer shall:
a. Determine whether it will be necessary for the city to employ any independent experts in order to reach a final decision about whether the owner is entitled to a rent increase and in what amount;
b. Within no more than 7 days from receipt of the petition form with all required attachments, inform the petitioner of the city’s anticipated costs of reviewing, analyzing, and deciding the petition and the employment of any expert necessary to complete those things. If the city does not within 7 days inform the petitioner of anticipated costs of reviewing, analyzing, and deciding the petition, then such costs shall be deemed unnecessary.

EXHIBIT D
a. Withdrawal of Petition. The landlord shall inform the city at least 5 days before the scheduled he aring date of the landlord’s intent to withdraw the petition. If the landlord fails to inform the city at least 5 days before the scheduled hearing date of the landlord’s intent to withdraw the petition, then the landlord will be responsible for the following costs.
i. Translator: Any cancellation must occur at least 48 hours prior to the scheduled hearing to avoid a cancellation charge.
ii. Court Reporter: Any cancellation must occur at least 48 hours prior to the scheduled hearing to avoid a cancellation charge.
iii. Hearing Officer: Any cancellation must occur at least 48 hours prior to the scheduled hearing to avoid a cancellation charge.

4. Standard for Determining When Petition is Complete. A Fair Rate of Return Petition shall be deemed complete upon receipt of all required documentation and information in the Fair Rate of Return Petition as stated in the “Fair Rate of Return Petition Packet” which can be found on the Rent Stabilization Housing website.
a. Supporting documents needed for a complete Fair Rate of Return Petition include but are not limited to the items stated in Regulation 1.03 section 1, subsections (a) through (c) and the following document: (i) copies of all written rental agreements in effect during this period; (ii) a spreadsheet demonstrating actual income; (iii) a spreadsheet demonstrating actual expenses; (iv) documentation to substantiate all claimed expenses (which demonstrates actual payment and a relationship t o the property); (v), an independent financial report; sixth, the proposed rent increase(s). b. A detailed description, including the date timelines, of all required supporting documents for a complete Fair Rate of Return Petition application can be found on page 5 of 8 of the Fair Rate of Return Petition Packet. If required documentation or information is missing, the City will contact the landlord and request the missing documentation or information. The landlord will h ave 14 days to provide the missing documentation or information, or the landlord’s Fair Rate of Return Petition may be dismissed unless, within 14 days of such request, the city informs the petitioner of anticipated costs for reviewing, analyzing, and deciding the petition. In the latter case, the petition shall be deemed complete when all information and supporting documents are provided AND such costs are fully paid to the city.

5. The city will take no action on the petition, other than those specified in subdivision (2) of this regulation, until the petition is deemed complete. a. Upon receipt of a deemed complete Fair Rate of Return Petition form with all required documents, the Hearing Officer shall mail a notice to all affected tenants noticing that the city has received a Fair Rate of Return Petition informing the tenants they have 30 days from the date upon which the City provides notice that the petition submission is deemed complete, to respond to the petition, and provide the city with additional materials, if they wish to use to contest the petition. Tenants are not entitled to any confidential landlord or property owner information. b. The City shall send out a Notice of Hearing that includes the date, time, location 125

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and or video conference link for the Fair Rate of Return Petition Hearing.

2. Procedures for Decision . In deciding whether to grant or deny a Fair Rate of Return Petition, the Hearing Officer shall fairly consider all documen tary evidence, to which the following procedures shall apply.
a. No later than the thirty-fifth (35th) day after the city deems the Fair Rate of Return Petition complete, the Hearing Officer shall send to the petitioner at the email address provided in the petition an electronic copy of any submission received by affected tenants. Such tenant submission shall be deemed received by the petitioner on the day that the Hearing Officer sends it.
b. Within 5 days of receipt of submission from the Hearing Officer of any tenant submission, the petitioner may reply to such submission. The Hearing Officer shall forward any such reply to the affected tenants at an email address provided by such tenants for that purpose or, if no emai l address is provided, to the tenants’ address by first class mail. There shall be no right of rebuttal or other reply by affected tenants after the reply brief has been submitted. Any further reply shall be presented orally at the hearing.
c. If the Hearing Officer determines that it is necessary to engage the services of an expert, the Hearing Officer shall engage that expert without undue delay, and in no event later than 10 days after the date the petitioner has paid the costs as described in Regulation 1.03. The Hearing Officer shall require that the expert provide their written opinion within 14 business days of the expert’s engagement. If required the Hearing Officer should issue a notice of continued hearing to the petitioner and the tenants to allow for additional time for the expert review. d. The Hearing Officer shall require that the expert submit their opinion in an electronic format suitable for distribution by email.
e. The Hearing Officer shall immediately send to the petitioner at the email address provided in the petition, and via first class mail or email to all affected tenants, and their representative, if any, a copy of the expert’s opinion, to which the petition er and tenants shall have 14 days to respond if they wish to do so. f. The hearing officer shall make their decision based only on the written submissions of the parties, the written opinions of any expert designated by the city after initial review of t he petition, timely -submitted responses to such submissions and opinions, a hearing involving both the owner and tenant where both the owner and the tenant can only provide statements directly to the Hearing Officer but cannot 126

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cross examine each other, and any relevant public records maintained by any government entity or agency.
g. At the hearing, the landlord will testify in a narrative fashion and will answer questions from the Hearing Officer, if any arise. The tenant will be afforded the opportunity to provide narrative testimony that the landlord may rebut within the time limits allowed by the hearing Officer for Testimony. h. After the Hearing Officer has prepared the decision, they shall email the final decision to the City. The City shall serve the decision by first -class mail to the parties.

3. Standards for Decision. The Hearing Officer shall grant a Fair Rate of Return Petition only if the petitioning owner demonstrates that their current year net operating income does not equal at least the base year net operating income plus 100% of the change in the Consumer Price Index since the end of the base year.

Regulation 1.05: Amortization of Capital Improvement Costs

1. In amortizing capital improvements, the following schedule shall be used to determine the amortization period of the capital improvement:

Improvement Years

Air conditioning or heating system 10

Other appliances
Refrigerator 5

Stove 5

Garbage disposal 5

Water heater 5

Dishwasher 5

Microwave oven 5

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Washer/dryer 5

Fans 6

Cabinets 10

Miscellaneous carpentry 10

Countertops 10

Doors 10

Knobs 5

Screen doors 5

Earthquake expenses

Architect/Engineer fees 5

Emergency services 5

Clean-up 5

Fencing and security 5

Management 5

Tenant assistance 5

Structural repair or retrofitting

Foundation repair 10

Foundation replacement 20

Foundation bolting 20

Iron or steel work 20

Masonry/chimney repair 20

Shear wall installation 10

Electrical wiring 10

Elevator 20

Fencing and gates
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Chain link 10

Masonry 10

Wood 10

Wrought iron 25

Fire alarm system 10

Fire sprinkler system 20

Fire escape 10

Flooring/floor covering

Hardwood 10

Tile or Linoleum 5

Carpet 5

Carpet Pad 5

Subfloor 10

Fumigation tenting 5

Glass

Windows 5

Doors 5

Mirrors 5

Insulation 10

Landscaping

Planting 10

Sprinklers 10

Tree replacement 10

Lighting (interior or exterior) 10

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Locks 5

Mailboxes 10

Meters 10

Plumbing

Fixtures 10

Pipe replacement 10

Re-pipe entire building 20

Shower doors 5

Paint 5

Paving or decking 10

Plastering 10

Railings 10

Roofing 10

Security systems or installations 10

Sidewalks and walkways 10

Stairs 10

Stucco 10

Sump pump 10

Tile work 10

Wallpaper 5

Window coverings 5

3. Rent increases authorized pursuant to this section shall be allocated as follows:
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a. Rent increases for unit-specific capital improvements shall be allocated to that unit; b. Rent increases for building -wide or common area capital improvements shall be allocated equally among all units;
c. Rent increases resulting from the Net Operating Income analysis shall be allocated equally among all units;
d. Notwithstanding the subsections above, the Hearing Officer, in the interests of justice, shall have the discretion to apportion the rent increases in a manner and to the degree necessary to ensure fairness. Such circumstances include, but are not limited to, units that are vacant or owner occupied.

Regulation 1.06 Rent Increase Based on Disproportionately Low Base Year Rents (Vega Petition)
If the contents of a Fair Rate of Return petition make clear that the basis for the petition is that current rents cannot yield a fair return solely or principally because base year rents were disproportionately low under criteria set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii), and if the petition has been deemed complete, the hearing examiner shall rule on the petition using the following criteria:

2. If the pet itioner satisfies the criteria of subdivision (1) of this Regulation, the hearing officer shall grant the petition and shall adjust affected units rents according to the following formula:
a. Fair market rent for comparable units as of the base year plus 4% for each year since the base year during which the criteria set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii) continued to apply. b. A 4% increase shall not be applied for any year after the base year during which the criteria set forth in Regulation 1.02, subdivision (3) paragraph (b) subparagraph (ii) did not apply and the current or previous owner did not apply the permitted 4% increase.

Regulation 1.07. Hardship Appeal

1. Any low- or moderate-income household shall have 30 days from the date when the hearing officer’s decision granting a rent increase is mailed to the owner, tenant and city, to inform 131

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the owner and the city that the authorized increase would cause a severe economic hardship.

The Tenant’s claim must be made in writing and must include:
a. Proof of the household’s low- or moderate-income status; b. Proof that the authorized rent increase would cause a severe economic hardship.

Economic hardship is severe if it would interfere either directly or indirectly with the household’s ability to remain housed or afford other basic necessities of life.

2. No monthly rent increase of more than the greater of 1 0%, twice the Employment Cost Index (ECI), or $100 shall be authorized for any unit occupied by a low - or moderate- income household if such an increase would result in severe economic hardship. a. The applicable figure for the ECI shall be the most recently reported calendar year figure as of the date when the petition was filed.

3. If tenants of a household make a claim of severe economic hardship, the owner shall not impose any rent increase affecting that household, other than any 4% increase generally permitted annually by the Rent Stabilization Ordinance, until the Hearing Office r rules on the tenants’ claim.

4. If tenants of a household make a claim of severe economic hardship, the owner shall have ten days from the date that the owner is informed of the tenant’s written claim to file with the city any written objection to the claim. Any such objection must include all relevant supporting evidence and shall be mailed to the tenant.

5. The tenant shall have the burden to prove the existence of severe economic hardship by a preponderance of the evidence.

6. The Hearing Officer shall rule on the claim of severe economic hardship within 30 days after the tenant’s claim was provided to the owner and the city, and the rule on the claim shall be in the form of an addendum to the original decision and mailed to the owner, tenant and city.

7. If the Hearing Officer determines that the originally-determined rent increase would cause a severe economic hardship, the affected unit’s rent shall annually increase by the amount of the 5% until the unit’s rent reaches the level that it would have been under the original decision.
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CITY COUNCIL OF THE CITY OF OXNARD

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF OXNARD ESTABLISHING ADMINISTRATIVE PROCEDURES AND REGULATIONS

TO IMPLEMENT THE PROVISIONS OF THE JUST CAUSE AND TENANT PROTECTION

AND RENT STABILIZATION ORDINANCES

WHEREAS, Oxnard City Code (“OCC”) Section 27-10(A) authorizes the City Manager to adopt procedures and regulations to implement the provisions of the Just Cause and Tenant Protection ordinance.; and

WHEREAS, OCC Section 27-28.1 authorizes the City Manager to adopt procedures and regulations to implement the provisions of the Rent Stabilization ordinance.

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

1. Fair Rate of Return Petition Regulations. The fair rate of return petition regulations, attached hereto and incorporated herein by this reference as Exhibit D, are hereby adopted.

2. Updates to Regulations. The City Manager or designee may modify the regulations established in Exhibit D when the City Manager or designee deems necessary to effectuate the purpose and intent of such regulations.

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3. Effective Date. This resolution shall be effective upon adoption.

PASSED AND ADOPTED this ______ day of _______, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
Luis A. Mc Arthur, Mayor
ATTEST:

___________________________
Lourdes A. López, City Clerk

APPROVED AS TO FORM:

___________________________
Stephen M. Fischer, City Attorney
134
Resolution Establishing an Administrative
Regulation regarding the Fair Rate of Return
Petition Regulation to Implement the City’s
Rent Stabilization Ordinance
Brenda Lopez, Housing Director
Housing Department
City Council
February 3, 2026
135
1) On April 13, 2022, City Council adopted the Just Cause Evictions and Other Tenant Protections (Just Cause) Ordinances which became effective June 2, 2022. 2) On January 25, 2024 and July 30, 2024 ordinance amendments were passed by City Council to provide additional tenant protections and provide clarifications. 3) On March 25, 2025 staff introduced amendments to the Just Cause Ordinance and four administrative regulations applicable to both ordinances. Staff did not advance the Fair Rate of Return Petition Regulation (Exhibit B), based on Committee feedback. Instead, staff proposed to collaborate with community stakeholders to further refine the regulation and bring it back to Committee at a later date. On April 29, 2025, City Council adopted an omnibus code city update that amended both ordinances and adopted the three of four proposed administrative regulations:

Registration, Right of First Refusal, and Ellis Act regulations.

BACKGROUND 2
136
4) In the months following the March 25th Committee meeting, staff worked closely with CAUSE, Attorney at Law Barbara Macri-Ortiz, and the Ventura County Association of Realtors (community stakeholders) to revise the Fair Rate of Return Petition Regulation and achieve consensus among all parties.
5) This process included online meetings with the community stakeholders on April 18, 2025, and July 17, 2025, each lasting several hours, as well as ongoing internal staff meetings. This process continued through October, at which time a compromise was achieved. 6) The revised Regulations were provided to the stakeholders on October 20, 2025 and presented to the Committee on January 13, 2026. The day prior to the January 13th Committee meeting Attorney Barbara Macri-Ortiz requested seven revisions to the Regulations. Staff recommended discussing each requested revision as presented in detail at Committee with active dialogue between Committee members, community stakeholders, and staff. Ultimately, two of the seven revisions were recommended for Council approval. In addition, as a result of the active dialogue, staff determined that an additional revision—specifically, the inclusion of clarifying language—was necessary for the Section. 1.07- Hardship Appeal.

The Committee recommended moving forward with the Regulations, subject to the three additional revisions.

BACKGROUND CONTINUED 3
137
1) The revised Fair Rate of Return Petition Regulation was presented before the Committee on January 13, 2026. 2) Staff received a letter on the day prior to the Committee meeting from Attorney Barbara Macri-Ortiz requesting seven revisions. The recommendations were discussed during the January 13th Committee meeting in a workshop format which included feedback from staff, committee members, and community stakeholders.3) Two of the seven revisions were accepted and staff identified a third revision as well.4) Based on the discussion at Committee, it is important to provide clarity on the purpose of a Fair Rate of Return Petition. Rent Stabilized Jurisdictions must provide an opportunity for a Landlord to receive a Fair Return on their property and the Petition process ensures that cities do not encroach on their constitutional right to a Fair Return and allows for them to request a rent increase that is above the City’s rent limit of 4%, should they provide sufficient documentation and prove that the standard increase of 4% would not allow them to receive a “fair and reasonable return” on their property. 5) The process is extensive, and requires documentation, including the landlord’s financial data (income vs. their expenses), that demonstrates that they are operating and facing undue financial hardship. A successful Petition request results in a one-time rent increase. In the following year, the landlord would again be subject to the 4% annual rent increase limit. While a Petition may be submitted annually, typically once approved, rents are considered aligned to provide a fair rate of return. As such, any subsequent Petition would require the landlord to demonstrate a substantial change in operating expenses sufficient to establish that a 4% increase would not yield a “fair and reasonable return” on the property.

EXECUTIVE SUMMARY 4
138
During the past three years, staff have observed emerging issues that hinder the effectiveness of the Rent Stabilization Ordinance (Ord. No. 3013), specifically, the Fair Rate of Return Petition process. The Rent Stabilization Ordinance applies to specific units, and protects tenants from excessive rent hikes and stabilizes housing costs, by limiting rent increases to a fixed percentage of 4% annually. A Fair Rate of Return Petition is an exception to the Rent Stabilization rent cap, and applies to a specific property, which allows a landlord to petition for a rent increase above the 4% maximum annual increase when they can prove the standard increase doesn't allow for a "fair and reasonable return" on their investment. The landlord must submit detailed financial data (income vs. expenses) to the City, proving they are operating at a loss or facing undue financial burden. In response, staff recommends enacting the Fair Rate of Return Petition Regulations to create consistency for all applications received and establish a clear process for processing Fair Rate of Return Petitions which will benefit both tenants and landlords alike. Based on collaborative discussion between staff and community stakeholders, revised Fair Rate of Return Petition Regulations were presented to the Committee on January 13, 2026. The highlights of the revisions between March 2025 - through the January 2026 Committee meeting are summarized below and are intended to clarify the Petition Process: 1) Regulation 1.02: Definitions-Section 4 and 6: added language to define time frame (base year).-Section 7: added language which expands the definition of operating income and added detailed steps on how to determine a fair return.

DISCUSSION 5
139
2) Regulation 1.03: Petition, Initial Petition Review; Petitioner Payment of Costs -Section 1(b): added details on what a financial report should demonstrate and added a clause which gives the presiding Hearing Officer the ability to request additional supporting information needed to make a determination. -Section 1(c) and Section 2(a): the original language specified dates by which an owner must provide a copy of the petition submitted to the City for review to the tenant(s). The dates were based on the date of submission. This inferred that the petition submitted is “complete” and therefore, that the tenant received all of the relevant information and set up an expectation on when a decision would be rendered. Since petitions are usually incomplete the language was modified to ensure that the tenant receives a copy of the complete petition and provides a better timeframe on when a response can be expected. -Section 3: new language was added to detail timeframes for a withdrawal of petition (cancellation of a hearing) to be filed by an owner in order to avoid cancellation charges for fees incurred by the City. -Section 4: section was revamped to outline what documentation is needed for a petition to be considered complete and establishes timelines.

Typo 1 pursuant to January 13, 2026 committee meeting:
-Section 4(a): the following typo was corrected “…in Regulation 1.03 section 1, subsections (a) through (d) (c).” 3) Regulation 1.04: Decision by Hearing Officer
-Further expands on Regulation 1.03, Sections 1 through 3 updated to thoroughly outline the Hearing Officer’s and the City’s timeframe for deeming the Fair Rate of Return Petition complete and the timeframe to issue a decision.

Typo 2 pursuant to January 13, 2026 committee meeting:
- Section 1.04(2)(a) the first word was corrected to read “No” as it read “O”.

DISCUSSION CONTINUED. 6
140
4) Regulation 1.05: Amortization of Capital Improvement Costs Revision pursuant to January 13, 2026 committee meeting:

This section was reformatted to fix indentation errors caused by wrapped text to properly reflect which costs fall under each major category.
5) Regulation 1.07: Hardship Appeal (originally titled Limitation on Rent Increases Granted Under this Part) -The original naming convention for this section caused confusion. It was simplified and renamed “Hardship Appeal”. In addition, language was added informing low or moderate income households of the timeline, documentation, and steps to file a claim of severe economic hardship resulting from an approved rent increase.

Revision pursuant pursuant to January 13, 2026 committee meeting:

Language was added throughout this section to provide clarification regarding what documentation will be distributed to the owner and the tenant and within which timeframe.

DISCUSSION CONTINUED. 7
141
That the City Council review and approve the proposed resolution establishing the administrative regulation to implement the provisions of the Rent Stabilization Ordinance regarding Fair Rate of Return Petition regulation.

RECOMMENDATION 8
142
End of Presentation
9 143

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.2

DATE: February 3, 2026

TO: City Council

FROM: Brenda Lopez, Housing Director, (805) 385-8092, [email protected]

SUBJECT: Lease Agreement with Teatro de las Américas.

RECOMMENDATION

That the City Council:

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

BACKGROUND

EXECUTIVE SUMMARY

Teatro de las Américas (Teatro) has been a tenant at 321 West Sixth Street since November 2019. The lease agreement required a payment of $990/per month. Teatro has faced a series of unexpected setbacks that significantly reduced its income stream, therefore Teatro requested a reduction of rent and forgiveness of past due rent.

At the Committee, the first motion by Committee Member Perello to charge $300/month during the first year, $600/month during the second year, and $900/month the third year did not receive a second. A subsequent motion was made to accept staff’s recommendation, with the addition to require Teatro to submit additional financial information.

That motion was approved 2-1. Based on the recommendation of the Committee meeting (vote of 2-1), staff revised the proposed lease agreement (A-8604) with Teatro. A new Section 3.3, titled “Monthly Activity Reports,” was added, requiring Teatro to submit a monthly report detailing its fundraising and activity efforts, as well as information on plays and events held during the month.

BACKGROUND

The City of Oxnard owns certain real property located at 321 West Sixth Street in Downtown Oxnard. The property consists of a building of 1,980 square feet and is currently occupied by Teatro de las Américas (Teatro), a local nonprofit organization. Teatro de las Américas was founded in Oxnard in the early 1990s as a bilingual theater company focused on connecting diverse communities through live stage productions. With a vision to be the dominant Spanish-language 144
theatre on the Central Coast, Teatro de las Américas values respect among people and envisions that every segment of our community will come together in artistic and creative efforts to promote these values. Teatro de las Américas produces work by Hispanic playwrights and offers live stage performances accessible to both English and Spanish speakers.

The City of Oxnard entered into a lease agreement (8828-19-CD) Teatro on November 18, 2019 authorizing their occupancy and use of the building for small live theater-related programs at a monthly rental rate of fifty-cents per square foot (.50c/SF), resulting in a total monthly rent of $990. As part of this initial lease, Section 4.4.1 authorized up to $35,000 in rent credit to cover costs incurred by Teatro for permanent improvements to the building. In addition to being responsible for permanent tenant improvements on the building, Teatro covers the cost of ongoing maintenance and operational stability for the facility. The term of that lease expired on November 20, 2022 and converted to a month to month tenancy.

On June 29, 2023, the City Council approved the first amendment to the lease agreement, extending the term to November 20, 2024. The monthly rental rate remained the same ($990/month) including Teatro’s obligation to make permanent improvements and upgrades to the Building as needed, at no cost to the City. It was further recognized that Section 4.4.1 of the original lease, which allowed for the aforementioned $35,000 rent credit, was complied with and based on receiving the full credit, no rent would be received by the City for the rent owed by Teatro from 4/1/2020 through 5/31/2023. In addition, the City Council approved a rental credit in the amount of $15,000 due to the building’s closure that resulted from the COVID-19 State of Emergency. The First Amendment rental revenue totaled $17,820, minus the $15,000 approved rent credit, resulting in an outstanding rent balance owed by Teatro in the amount of $2,820 to be paid before the end of the term, November 20, 2024. A payment in the amount of $990 was received reducing the amount to $1,830.

The First Amendment term expired and the agreement converted to a month to month tenancy, meaning the same terms apply from November 20, 2024 to the current date.

DISCUSSION

During the 2025 calendar year, Teatro faced a series of unexpected setbacks that significantly reduced its income stream.

In the first quarter, a nearly completed production was cancelled, resulting in unrecoverable costs that strained their limited resources. Because every production depends entirely on volunteers, additional plays had to be cancelled when Teatro struggled to recruit the volunteer support needed to bring performances to life. Compounding these challenges, Teatro saw a sharp decline in attendance, in 2024 total attendance was 930 people versus 620 people through December 2025.

Based on the financial information provided by Teatro, the organization incurred a net loss of $5,834.80 for the 2024 calendar year and $5,969.84 for 2025. On December 31, 2025, Teatro received a grant award totaling $20,000 from the County of Ventura, which is to be used for Teatro to create a program to address mental health needs through artistic and creative engagement programming. As a result, Teatro’s 2025 profit and loss statement reflects a net income of $14,030.16. However, these funds are restricted as described and cannot be used to cover regular operating expenses. As previously mentioned, Teatro is responsible for rent, permanent tenant improvements, and ongoing maintenance and utilities for the building. Teatro has a regular staff person to perform urgent repairs that prevent service disruptions, and ensure compliance with municipal safety standards, among other routine building maintenance. For the time period of November 2024 - November 2025, expenditures for this service totaled $3,272.68.

A copy of Teatro’s 2024 and 2025 profit and loss statement is attached to this report (Attachment 3).

Teatro currently has an outstanding balance of $1,830 for the First Amendment terms (6/1/23-11/20/24) and $13,860 from December 2024 through January 2026 for a total of $15,690. On October 9, 2025 Teatro submitted a request for consideration of rent forgiveness, in addition to a new lease with modified terms. Teatro is seeking approval of the following:

1. A new lease with an initial three year term and two one-year options to extend the lease for a maximum lease term of five years.

2. An annual lease fee of $1.00.
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3. Forgiveness of past due rent totaling $15,690 through January 2026 as well as a daily pro rata ($35.36) rental forgiveness until effective date of new lease in the month of February 2026.

In developing a recommendation, the following factors were considered:

Vacant spaces and properties can result in significant City expenses related to maintenance and security, including property management, boarding broken windows, graffiti removal, utility costs, and responses from police and fire departments. As reflected in Teatro’s financial records, property maintenance costs totaled $3,272.68 for the 12-month period from November 2024 through November 2025. The City previously owned a building on this same block and, after years of expenses related to vandalism and fire incidents, ultimately allocated $162,284.13 for its demolition.

Having a tenant in place, at a minimum, helps offset City expenses and reduces visual blight.

Secondly, the City is a majority property owner of this block of downtown, where the parcels have been approved for surplus. There have been past proposals to redevelop the City owned parcels, and also proposals to combine privately owned parcels with the City parcels for a large-scale redevelopment project, consistent with the Council accepted Downtown Vision Plan and City Code. As the City continues to explore those options, long-term use of the City owned properties has not been entertained, which limits their leasability and City resources being invested to make improvements to the building.

Third, fostering the arts is a large part of the Downtown Vision Plan, Downtown Arts Hub, and in alignment with Downtown Oxnard Improvement Association's (DOIA) goals. Recently DOIA and the Oxnard Performing Arts Center submitted an application for Downtown Oxnard to be recognized as a California Cultural District. In December 2026 the California Arts Council approved the application. Teatro de las Américas was listed as a local asset and amenity associated within that application.

Lastly, a stated City Council priority is to focus on business retention. In this particular case, with the facts discussed above, Teatro cannot continue without a rent subsidy at this time.

In light of this information, staff recommends approving Teatro’s request for a $1/year rent as well as forgiving the back rent owed to help offset financial challenges experienced to date, however; with the expectation that rent payments will begin once revenues permit.

Should Teatro become profitable, the proposed lease agreement includes language where Teatro would pay the City a quarterly rent up to $2,970 ($990/month) of their quarterly gross revenues in excess of $10,560. The gross revenue figure was calculated based on the average gross annual revenue of Teatro’s most profitable years (2022 and 2024). According to CBRE, the City’s contracted real estate firm, the October Comp Report for Single tenant building is approximately $1.50/Square foot/month for a triple net lease, which is approximately the same market rate as when the original lease was first extended. Staff recommends keeping the same reduced rate of .50 sq/ft totaling $990/month.

This action helps sustain the community arts, preserves a dedicated arts venue in Downtown, and ensures the City’s building remains occupied and properly maintained at no cost to the City.

STRATEGIC PRIORITIES

This agenda item also 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.

FINANCIAL IMPACT

If the City Council approves the proposed lease agreement, rental revenue of $3 is anticipated to be received into the General Fund account during the proposed initial three-year lease, prior to any optional lease extensions. The financial 146
impact to the City would be a loss of $15,690 in rental revenue for the past due rental payments, and up to 28 days of daily pro-rata rental forgiveness in the month of February 2026 at a daily cost of $35.36. Should Teatro’s quarterly gross revenues not be sufficient, as noted in this staff report, to require quarterly rent payments to the City of up to $2,970, there is a potential loss of future rental revenue for the proposed initial three year lease term, which equates to up to $35,640. However, the City would experience cost savings for building maintenance expenses for the initial term of the lease.

COMMITTEE OUTCOME

During discussion of the item, Committee Member Perello made the first motion, which did not receive a second, to charge $300/month during the first year, $600/month during the second year, and $900/month the third year. Although Teatro’s President, Juan Gonzalez, responded that capping the rent at $600/month may work, the Council Committee did not pursue the concept further.

Ultimately, the Community Services, Public Safety, and Housing & Economic Development recommended on a vote of 2-1 to forward the item to the City Council with a modification to the agreement to require Teatro to provide the Housing Director a monthly activity report detailing fundraising and activity efforts, as well as information on plays and events held throughout the month.

Please click here to view the January 13, 2025, Community Services, Public Safety, and Housing & Economic Development Committee.

Prepared by: Brenda Lopez, Housing Director

ATTACHMENTS

1. Attachment 1 - Proposed Lease Agreement A-8604

2. Attachment 2- Agreement and First Amendment 8828-19-CD

3. Attachment 3 - 2024 and 2025 Profit and Loss

4. Attachment 4 - Presentation

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Agreement Number: A-8604

1 LEASE

This Lease ("Lease") is made as of the ____ day of February, 2026, by and between the City of Oxnard ("City") and Teatro de las Americas ("Tenant"). Each of City and Tenant are sometimes hereinafter referred to as a "Party" and collectively as the "Parties."

1. Building

City is the owner of a 1,980 square foot building located at 321 West 6th Street, Oxnard, California, ("Building"). City hereby leases Building to Tenant, and Tenant leases the Building from City for the term, at the rental, and pursuant to the covenants, provisions and conditions set forth herein,

2. Term

The term of this Lease ("Term") shall commence on February ____, 2026 (the "Commencement Date") and shall expire on February____, 2029 (the "Expiration D ate"), subject to earlier termination as provided herein. Upon mutual agreement of the Parties, this Lease may be extended for 2 additional one - year terms, at the discretion of the City. Following the lease commencement date of February ___, 2026 Tenant shall have continued access to the Building.

3. Rent

3.1 Tenant shall pay the City a fee of $1.00 annually.

3.2 Additionally, Tenant shall pay the City quarterly rent up to $2,970 of the Tenant's gross revenues in excess of Ten Thousand Five Hundred and Sixty Dollars ($10,560.00) This rent amount shall be due to the City on April 15th for the quarter year ending March 31, July 15th for the quarter year ending June 30, October 15th for the quarter year en ding September 30, and January 15th for the quarter year ending December 31. Each quarterly payment shall be accompanied by a report by the Tenant that provides the following information with supporting documentation:

3.2.1. Quarterly Gross Revenues

Tenant, subject to review and approval by the City, shall either:

I. Deliver Rent payment to City, by the due date required above to the Housing Director at the following address: City of Oxnard Housing Department 435 S. D Street, Oxnard, CA 93030 by the due date identified above; or

II. Request that the City approve that the Tenant invest the applicable Rent as identified above that would otherwise have been paid to the City to pay for permanent property improvements to the bu ilding and provide the City with receipts on a quarterly basis demonstrating that such funds have been used to pay for permanent property improvements to the building. Tenant will be required to submit a written request to the Housing Director, by the due date required above, identifying the amount of funding Tenant wants to use to pay for the permanent property improvements and the type of property improvements the Tenant wants to make. If the Housing Director approves this request, then the Rent amount must be used to complete the approved property improvements and the funds must be expended prior to the end of the next annual quarterly period, unless a 148

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2 longer period is approved by the Housing Director. If the Housing Director denies this request,

III. then the Rent must be paid to the City at the address identified in Section 3.2.1.(I) of this Lease within ten days of the Housing Director’s notice of denial.

IV. A late charge of $500 applies on the last day of the month following the end of each quarter if Tenant has not complied with the requirements of this Lease to pay Rent.

3.3 Monthly Activity Reports. Tenant shall provide a monthly activity report (Report) to the City's Housing Director detailing fundraising and activity efforts, as well as plays and e vents held throughout the month. The Report shall include, at a minimum: (i) a summary of fundraising initiatives, amounts raised, and intended uses; (ii) descriptions of all plays, events, and other activities conducted, including dates, attendance figure s, and outcomes; and (iii) any challenges encountered or planned improvements related to operations. Such Report shall be delivered by the 15th day of the following month to the Housing Director at the address specified in Section 3.2.1.(I).

Failure to provide the report as required shall constitute a default under Section 14.1.3 of this Lease.

This Report may be submitted to the City via electronic mail. Tenant shall be provided with a designated email address by Housing Department Staff to submit the Report. Tenant is required to get City confirmation of receipt of report by Housing Department staff, if no receipt is received within 10 business days or if report is not deliverable via electronic mail then Tenant is required to submit monthly reports at the address listed in section 3.2.1(I).

4. Delivery and Condition of Building

4.1 Tenant hereby accepts the Building in its existing "AS IS" condition as of the date hereof subject to all applicable zoning, municipal, county and state ordinances and regulations governing the use of the Building, and any easements, licenses, covenants, conditions or restrictions of record executed by City, and accepts this Lease subject thereto and subject to all matters disclosed thereby.

4.2 Prior to the execution of this Lease, Tenant and/or its agents fully inspected the Building and are fully aware of its current condition. Tenant acknowledges the Building is an older structure that has deferred maintenance and has not been upgraded to the current standards for new construction.

Tenant also acknowledges that City has not made any representation or warranty whatsoever as to the condition of the Building including, but not limited to, its electrical, plumbing, roof, lighting, or the present or future suitability of the Building for the conduct of Tenant's business. It is hereby the responsibility of the tenant to perform regular maintenance on the building, make permanent improvements to the building as needed, and return the Building to City at the expiration of th is Lease in same or improved condition of commencement of this Lease. City shall not be liable for any latent or patent defects in or about the Building. Tenant hereby waives all other express or implied warranties or representations regarding any latent or patent defects in the Building.

4.3 Tenant shall, upon execution of this Lease , with City's prior written approval, prepare plans ("Plans") and obtain all necessary permits for, and commence construction upon the Building of, 149

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3 any and all improvements necessary to open and operate Tenant's business, and to make specific improvements to the Building (the "Improvements"), including regular maintenance

5. Use of Building

5.1 Limitation on Use. Tenant shall use the Building solely for its small live theater -related or similar/complimentary programs. Total occupancy of the Building shall not exceed 49 persons at any time.

5.2 Tenant's Operation of Business. Tenant shall continuously and uninterruptedly during the entire Lease Term:

5.2.1 Adequately staff its business with sufficient employees;

5.2.2 Conduct Tenant's business at all times in a first -class manner consistent with reputable business standards and practices, in good faith and in such a manner that the high reputation of the City and the Building is maintained.

5.2.3 Tenant may sublease the Building for similar live theater or live music purposes, with prior written approval from the City.

5.3 Anti-discrimination and Equal Opportunity. Tenant, for itself, its successors and assigns and all persons claiming under or through it, covenants that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry, in the leasing, subleasin g, transferring, use, occupancy, tenure or enjoyment of the Building, nor shall Tenant or any person claiming under or through it, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy, of tenants, licensees, employees or vendees in the Building or the improvements thereon. The foregoing covenants shall run with the land.

Tenant, for itself, its successors and assigns and all persons claiming under or through it, covenants that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual or ientation, marital status, national origin or ancestry in the construction of any improvements on the Building.

The Tenant shall refrain from restricting the rental or lease of the Building on the basis of race, color, creed, religion, sex, sexual orienta tion, marital status, ancestry or national origin of any person. All leases, deeds or contracts which Tenant proposes to enter into with respect to the lease, sublease, transfer, use, occupancy, tenure or enjoyment of any land in the Building shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses which shall be binding on all contracting parties or transferees: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Building, nor shall any party to this contract, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land."

5.4 Prohibited Uses; Alterations. Tenant shall not do or permit anything to be done in or about the 150

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4 Building that in any way increases the existing rate of any fire or other insurance on the Building or any of its contents, or that causes a cancellation of any insurance policy covering the Building, the Building or any part of them or any of the contents thereof, or which constitutes an activity specifically excluded from the City's insurance policy or any insurance Tenant is required by City to obtain, which policies are described in Section 6 of this Lease. Tenant shall not commit or cause to be committed any nuisance or waste in or on the Building or permit anything to be done in or about the Building that will in any way conflict with any law, statute, or dinance or governmental rule or regulation now in force or hereafter in force. Tenant shall not display, store, or sell merchandise or allow carts, portable signs, devices or any other objects to be stored or to remain outside the exterior walls and perman ent doorways of the Building without City's prior written consent. Tenant shall not, without the prior written consent of City, sell merchandise from vending machines or allow any coin operated vending or gaming machines on the Building. Except as otherwise provided herein, Tenant shall not make or cause to be made any alterations, repairs, additions or improvements to any part of the Building, without the prior written consent of City, which consent may be withheld in City's sole and absolute discretion.

6. Insurance

6.1 Tenant shall obtain and maintain the Term the insurance coverages as specified in Exhibit A.

6.2 Tenant shall, prior to occupancy, file with the Risk Manager evidence of insurance coverage as specified in Exhibit A . Evidence of insurance coverage shall be forwarded to the Risk Manager, addressed as specified in Exhibit A.

6.3 Maintenance of proper insurance coverages by Tenant is a material element of this Lease. Tenant’s failure to maintain or renew insurance coverages or to provide evidence of renewal will be considered a material breach of this Lease.

7. Damage

7.1 Partial Damage-Insured. In the event the Building is damaged by any casualty which is covered under fire and extended coverage insurance carrie d by City, then City shall restore such damage provided sufficient insurance proceeds are available to pay for the cost of restoration and provided such restoration can be completed within one hundred and eighty (180) days after the commencement of the work in the opinion of a registered architect or engineer appointed by City. In such event this Lease shall continue in full force and effect, and Tenant shall not be entitled to any abatement or reduction of Rent.

7.2 Partial Damage-Uninsured. In the event the Building is damaged by a risk not covered by City's insurance or the proceeds of available insurance are less than the cost of restoration, or if the restoration cannot be completed within one hundred and eighty (180) days after the commencement of work in the opinion of the registered architect or engineer appointed by City, then City shall have the option either to (1) repair or restore sue continuing in full force and effect and Tenant shall not be entitled to any abatement or reduction of Rent, o r (2) give notice to Tenant at any time within thirty (30) days after such damage terminating this Lease as of a date to be specified in such notice, which date shall be not less than thirty (30) nor more than sixty (60) days after giving such notice. In the event of the giving of such notice, this Lease shall expire and all interest of Tenant in the Building shall terminate on such date so specified in such notice and all Rent shall be paid to the date of such termination; provided, however, that City agre es to refund to the Tenant any Rent theretofore paid in advance for any period of time subsequent to such date.

7.3 Total Destruction. In the event the Building is totally destroyed or the Building cannot be restored as required herein under applicable laws and regulations, notwithstanding the availability of insurance 151

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5 proceeds, this Lease shall be terminated effective the date of the damage.

7.4 City's Obligations. The City shall not be required to repair any injury or damage by fire or other cause, or to make any restoration or replacement of any decorations, partitions, floor covering or any other improvements or property installed in the Building by Tenant or at the direct or indirect expense of Tenant. Tenant shall be required to restore or replace same in the event of damage. Tenant shall have no claim against City for any damage suffered by reason of any such damage, destruction, repair or restoration; nor shall Tenant have the right to terminate this Lease as the result of any statutory provision now or hereafter in effect pertaining to the damage and destruction of the Building.

8. Condemnation

If all or any part of the Building shall be taken or appropriated for public or quasi public use by right of eminent domain with or without litigation or transferred by agreement in connection with such public or quasi-public use, either Party hereto shall have the right at is option exercisable within thirty (30) days of receipt of notice of such taking to terminate this Lease as of the date possession is taken by the condemning authority; provided, however, that before Tenant may terminate this Lease by re ason of taking or appropriation as provided hereinabove, such taking or appropriation shall be of such an extent and nature as to substantially handicap, impede or impair Tenant's use of the Building. No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns to City any award which may be made in such taking or condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however, that nothing contained herein shall be deemed to give City any interest in or to require Tenant to assign to City any award made to Tenant for the taking of personal property and fixtures belonging to Tenant and/or for the interruption of or damage to Tenant's business.

9. Security

Tenant shall be responsible for locking and securing Building and providing any desired security services to the Building, if any, during the Term or any extensions thereof.

10. Utilities

Tenant shall pay for all water, gas, heat and electricity services supplied to the Building. City shall not be liable in damages or otherwise for any failure, interruption or unavailability of any utility service being furnished to the Building and no such failure or interruption shall entitle Tenant to terminate this Lease or receive any abatement of Rent hereunder.

11. Taxes

Tenant shall pay at least ten (10) days before due, and before any fine, penalty, interest or cost shall be charged thereon, directly to the appropriate taxing or other governmental authority, all:

11.1 Real estate and other ad valorem taxes and assessments of every kind and nature levied and assessed upon the Building and the underlying realty including, but not limited to, po ssessory interest taxes assessed against the leasehold interest created hereby and general and special assessments, whether foreseen or unforeseen, and

11.2 Taxes, assessments, license fees and public charges levied, assessed or imposed upon its business operation on the Building, (collectively, "Taxes") and Tenant shall deliver to City copies of receipted bills for such Taxes within fifteen (15) days after receipt of such bills by Tenant.

12. Compliance with Laws

Tenant agrees to comply with all a pplicable zoning, municipal, county and state laws, ordinances and 152

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6 regulations governing the use of the Building, and any covenants or restrictions of record. Tenant agrees to secure any federal, state or local licenses or permits required in order to use the Building for the purposes specified hereinabove. Tenant shall secure such licenses and permits before the Commencement Date of this Lease.

13. Indemnity and Exculpation

13.1 Indemnity. Tenant shall indemnify, defend and hold harmless City, and its officers, officials, employees and agents against any and all claims, liabilities, losses, costs, expenses, including without limitation attorneys' fees and costs including without limitation those resulting from theft, vandalism, personal injury, disability or death, and even if caused in whole or in part by the passive negligence of City and/or its officers, officials, employees and/or agents (e.g., failure to supervise or control, or warn of or remove a condition on or about the Building) arising from:

i. The condition of the Building and surrounding areas which are used by Tenant and Tenant's employees, staff, consultants, agents, contractors, suppliers, invitees, guests, patrons, licensees, successors and assigns (collectively, "Tenant's Representatives"),

ii. Tenant's and Tenant's Representatives' use of the Building including without limitation the construction of the Improvements and any other work performed therein,

iii. Any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or

iv. The conduct of Tenant's business operated on or about the Building or any act or negligence of Tenant, or any of Tenant's Representatives, except that Tenant shall not indemnify, defend and hold harmless City from and against any claims to the extent they result solely from the active negligence or willful misconduct of City and/or its officers, officials, employees and/or agents (collectively, "City's Representatives").

In case any action or proceeding is brought against City, Tenant, upon notice from any such party, shall defend the same at Tenant's expense by counsel reasonably satisfactory to City. Tenant, as a material part of the consideration given to City, hereby (i) assumes all risk of damage to pr operty or injury to persons in, upon or about the Building arising from any cause including, but not limited to, any theft, vandalism, damage, injury to person or death resulting from the condition of the Building during the Term hereof but excluding any c laims (except for those claims arising from City's alleged failure to supervise or control Tenant's actions or Tenant's use of the Building) arising from the active negligence or willful misconduct of City, and (ii) waives all claims in respect thereof against City and its officers, officials, employees and agents.

13.2 Exemption of City from Liability. It is hereby agreed that City shall not be liable for any injury or damage which may be sustained by the person, goods, wares, merchandise or property of Tenant, its employees, invitees or customers, or by any other person in or about the Building caused by or resulting from fire, steam, electricity, gas, water or rain which may leak or flow from or into any part of the Building, or from the bre akage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, whether said damage or injury results from conditions arising upon the Building or from other sources. 153

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7 14. Default and Remedies

14.1 Default. The occurrence of any of the following shall constitute a material default and breach of this Lease by Tenant:

14.1.1 Any failure by Tenant to pay any Rent at the time said payment is due:

14.1.2 The abandonment or vacation (defined to be ten (10) or more days of continuous absence from the Building) of the Building by Tenant;

14.1.3 The failure by Tenant to observe and perform any other provision of this Lease to be observed or performed by Tenant, where such failure continues for fifteen (15) days after written notice thereof by City to Tenant; provided, however, that if the nature of the default is such that the same cannot reasonably be cured within said fifteen (15) day period, Tenant shall not be deemed to be in default if Tenant shall within such period commence such cure and thereafter diligently prosecute the same to completion;

14.1.4 The making by Tenant of any general assignment or general arrangement for the benefit of creditors; the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Building or Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Building or of Tenant's interest in this Lease, where such seizure is not discharged within thirty (30) days.

14.2 Termination. In the event of a ny such default by Tenant, then in addition to any other remedies available to City at law or in equity, City shall have the immediate option to terminate this Lease and all rights of Tenant hereunder by giving written notice of such termination. In the ev ent that City shall elect to so terminate this Lease then City may recover from Tenant the worth at the time of award of the amount by which the unpaid Rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided, plus any other amount necessary to compensate City for all the detriment proximately caused by Tenant's failure to perform his obligations under this Lease or which in the ordinary course of events would be likely to result therefrom. At City's election, such other amounts in addition to or instead of the foregoing as may be permitted from time to time by applicable California law.

14.2.1 Additional Remedies. In the event of the vacation or abandonment of the Building by Tenant (as defined in Section 14.1.2 above), and if City does not elect to terminate this Lease and Tenant's right to possession of the Building by electing the remedy prov ided in Section 14.2 above, then City may recover all Rent as it becomes due.

14.2.2 City entry into the Building for maintenance purposes or in an attempt to relet the Building shall not be considered to terminate Tenant's right to possession of the Building and no entry of the Building by City shall be construed as an election to terminate this Lease unless a written notice of such intention be given to Tenant 154

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8 or unless a court of competent jurisdiction decree the termination thereof. City may at any time after any default by Tenant elect to terminate this Lease pursuant to Section 14.2 above.

14.2.3 The rights of City under this Lease shall be cumulative to all other rights or remedies now or hereafter available to City at law or in equity.

15. Maintenance

15.1 Tenant's Obligations. Tenant, at its sole cost and expense, shall keep, maintain and, if necessary, repair all portions of the Building as well as all improvements on the Building and all facilities appurtenant to the Building in good order and repair and in a safe and clean condition, including without limitation the interior surface of exterior walls, windows, window frames, doors, door frames, locks, plate or other glass, floor covering, interior ceiling and walls, all electrical equipment, all heating, ventilation, exhaust, make -up and air conditioning equipment, all plumbing, sewage and sprinkler systems, if any, and all other equipment installed in or located outside of the Building but otherwise exclusively serving the Building. In the event Tenant fails to make repairs and/or maintain the Building or any part thereof in good order, condition and repair, City may give Tenant ten (10) days notice to do such acts as are reasonably required to so repair or maintain the Building. In the event Tenant fails to promptly. commence such work within said ten (10) day period and diligently prosecute same to completion, then City shall have the right, but not the obligation, to do such acts and expend such funds at the expense of Tenant as are reasonably required t o perform such work. Any amount so expended, together with interest thereon at the Default Rate from the date of payment by City until the date of repayment by Tenant, shall be paid by Tenant as Additional Rent hereunder. City shall have no liability to Tenant for any damage, inconvenience, or interference with the use of the Building by Tenant as a result of performing any such work. In the event of emergency repairs, Tenant hereby grants to City the right to enter upon the Building at any time. Any perman ent building improvements shall be the responsibility of the Tenant.

15.2 Maintenance of Glass. Notwithstanding anything which may be or appear to be herein to the contrary, Tenant shall, at its own cost and expense, repair and replace any plate or other glass in any window on the Building that is broken for any reason. Should Tenant fail to repair or replace any broken glass within two (2) days after same is broken, City may, without notice to Tenant, replace or repair such glass and Tenant shall immediately reimburse City as additional rent for the cost thereof.

15.3 Waiver by Tenant. City shall have no obligation to repair or maintain the Building or improvements constructed therein except as provided in this Lease. Tenant hereby waives all right to make repairs at the expense of City as provided for in any statute or law in effect at the time of execution of this Lease or any amendment thereof or any other statute or law which may be hereafter enacted during the term of this Lease.

16. City's Right of Entry

Tenant shall permit City or City's Representatives to enter the Building at all reasonable times for the purpose of inspecting the Building to determine whether Tenant is complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect City's interest in the Building under this Lease or to perform City's duties under this Lease. City also reserves and shall at any and all times have the right to enter the Building to submit said Building to inspection by prospective purchasers or tenants or prospective or existing mortgagees, to post notices of non - responsibility and "for lease" signs, and to alter, improve or repair the Building and any portion of the Building without abatement of rent. Tenant hereby wai ves any claim for damages for any injury or inconvenience to or interference with Tenant's business, any loss of occupancy or quiet enjoyment of 155

Agreement Number: A-8604

9 the Building, and any other loss occasioned thereby. For each of the aforesaid purposes, City shall at all times have and retain a key with which to unlock all of the doors in, upon and about the Building, excluding Tenant's vaults and safes, and City shall have the right to use any and all means which City may deem proper to open said doors in an emergency, the ex istence of which shall be determined by City in its sole discretion, in order to obtain entry to the Building. Any entry to the Building obtained by City by any of said means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Building, or an eviction of Tenant from the Building or any portion thereof.

17. Transfers

Assignment and Subletting. Tenant shall not voluntarily or by operation of law assign, license, franchise, transfer, mortgage or otherwise encumber all or any part of Tenant's interest in this Lease or in the Building, and shall not sublet, franchise, or license all or any part of the Building, without the prior written consent of City in each instance and any attempted assignment, license, franchise, transfer, mortgage, encumbrance or subletting without such written consent shall be wholly void.

18. Attorney’s Fees.

In case of any action or proceeding brought by either Party against the other under this Lease, the prevailing Party shall be entitled to recover reasonable attorneys' fees and costs incurred.

19. Notices

All communications, notices, and demands of any kind that either Party may be required or desires to give to or serve on the other Party shall be made in writing personally or sent by registered or certified mail or Federal Express (or other like overnight delivery service) to the following addresses:

To City: Oxnard Housing Department
ATTN: Housing Director
435 S. D Street
Oxnard, CA 93030

Tenant: Board President
ATTN: Juan Gonzalez
Teatro de las Americas
P.O. Box 50177
Oxnard, CA 93030

Any such notice shall be presumed to have been received on the earlier of:

i. Personal delivery to the address(es) shown above,

ii. One (1) day after delivery to Federal Express or other like overnight delivery service, or

iii. Forty-eight (48) hours after posting in the United States mail. Either Party may change its address by giving the other Party written notice of its new address.

20. Subordination: Atonement

156

Agreement Number: A-8604

10 20.1 Upon request of City or any mortgagee or beneficiary of City, Tenant shall, in a writing provided by City or any mortgagee or beneficiary of City, subordinate its rights hereunder to the lien of any mortgagee or deed of trust or ground lease("Mortgage"), now or hereafter in force against the land, Building and Bui lding, and to all advances made or hereafter to be made upon the security thereof, provided that such Mortgage shall not materially impair Tenant's rights under this Lease, or impose any additional obligations upon Tenant. Tenant further agrees, upon reque st of City or any mortgagee or beneficiary of City, to provide to City and/or any such mortgagee or beneficiary, financial statements of Tenant and the principal owners of Tenant within ten
(10) days after request therefor.

20.2 The provisions of this Section 21 to the contrary notwithstanding, and so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full term thereof.

21. Surrender

By entry hereunder, Tenant accepts the Building as being in good and sanitary order, condition and repair and agrees on the last day of the said Term, or sooner termination of this Lease, to surrender unto City the Building with said appurtenances in the same condition as when received, reasonable use and wear excepted, and to remove all of the Tenant's personal property from the Building. Tenant shall, upon the request of City, remove from the Building those trade fixtures and other improvements identified by City and installed in the Building by or at the direction of Tenant, and Tenant shall repair any damage occasioned by such removal

22. Estoppel Certificate

Within ten (10) days after request by City (which request may be from time to time as often as reasonably required by City), Tenant shall execute and deliver to City a statement that this Lease is in full force and effect without modification except as may be represented by City, that there are no uncured defaults in City's performance hereunder, and the specific number of months or years of rent that has been paid in advance (if any). Any such statement may be conclusively relied upon by any prospective purchaser or encumbrances, of the Building. Tenant's failure to deliver such statement within ten (10) days of City's written request therefor shall be a binding agreement of Tenant:

i. That this Lease is in full force and effect without modification except as may be represented by City,

ii. That there are no uncured defaults in City's performance hereunder, and

iii. That not more than one installment of Rent has been paid in advance.

Further, such failure to deliver such certificate (showing any exceptions to any of the statements of fact required thereby) shall be a material default under this Lease.

23. Binding on Successors and Assigns

Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the Parties, their heirs, personal representatives, and permitted successors and assigns.

24. Waivers

No waiver by City of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Te nant of the same or any other provisions. The subsequent acceptance of Rent hereunder by City shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant, or condition of this Lease, other than the failure of Tenant to pay th e particular Rent so accepted, regardless 157

Agreement Number: A-8604

11 of City's knowledge of such preceding breach at the time of acceptance of such Rent. No term, covenant or condition of this Lease shall be deemed to have been waived by City unless such waiver be in writing and signed by City.

25. Entire Agreement; Amendments

There are no oral or written agreements or representations between the Parties affecting this Lease, and this Lease supersedes and cancels any and all previous negotiations, arrangements, representations, agreements and understandings, if any, between the Parties with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. All reliance by either Party with respect to representations and warranties shall be solely upon the representations and agreements contained in this Lease.

No amendment or addition to this Lease shall be binding upon the Parties unless in writing, signed and delivered by the Party to be charged.

26. Time

Time is of the essence of this Lease.

27. No Broker

Tenant represents and warrants that it has dealt with no real estate brokers, leasing agents or finders in connection with or arising out of any of the transactions contemplated by this Lease, and covenants and agrees to indemnify, defend and save City harmless from any and all losses, liability, damages and expenses (including reasonable attorneys' fees and costs), that may arise from a breach of this representation and warranty.

28. Severability

If any provisions of this Lease shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision of this Lease, and all such other provisions shall remain in full force and effect. The Parties intend that if any provision of this Lease is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid.

29. Applicable Law

The laws of the State of California shall govern the validity, performance and enforcement of this Lease.

This Lease shall not be construed either for or against City or Tenant, but this Lease shall be interpreted in accordance with the general tenor of the language in an effort to reach an equitable result.

30. Waiver of Redemption Rights

Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event of Tenant being evicted or dispossessed for any cause, or in the event of City obtaining possession of the Building by reason of the violation by Tenant of any of the covenants and conditions of this Lease or otherwise. The rights given to City herein are in addition to any rights that may be given to City by any statute or otherwise.

31. No Reservation or Option

The submission of this Lease for examination does not constitute a reservation of or option for the Building, and this Lease shall become effective as a lease only upon execution thereof by City and Tenant.

32. Counterparts
158

Agreement Number: A-8604

12 This Lease may be executed in counterparts, each of which shall be deemed to be an original document.

33. Captions

The captions of the paragraphs of this Lease are for convenience only and shall not be deemed to be relevant in resolving any question of interpretation or construction of any section of this Lease.

159

Agreement Number: A-8604

13 IN WITNESS WHEREOF, City and Tenant have executed this Lease as of the day and year first written above.

CITY OF OXNARD TENANT

______________________________ ______________________________ Luis A. Mc Arthur Juan Gonzalez Mayor President, Teatro de las Americas

ATTEST TENANT

______________________________ ______________________________ Lourdes A. López James Donlon
City Clerk Treasurer

APPROVED AS TO FORM

Stephen M. Fischer
City Attorney

160

Agreement Number: A-8604

14 Exhibit INS-A

INSURANCE REQUIREMENTS FOR CONSULTANTS
(WITH ERRORS AND OMISSIONS REQUIREMENT)

1. Consultant shall obtain and maintain during the performance of any services under this Agreement the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of services hereunder by Consultant, its agents, representatives, employees or subconsultants.

a. Commercial General Liability Insurance, including Contractual Liability, in an amount not less than $1,000,000 combined single limit for bodily injury and property damage for each claimant for general liability with coverage equivalent to Insurance Services Office Commercial General Liability Coverage (Occurrence Form CG 0001). If a general aggregate limit is used, that limit shall apply separately to the project or shall be twice the occurrence amount;

b. Business automobile liability insurance in an amount not less than $1,000,000 combined single limit for bodily injury and property damage for each claimant for automobile liability with coverage equivalent to Insurance Services Office automobile liability coverage (Occurrence Form CA0001) covering Code No. 1, “any auto;”

c. Professional liability/errors and omissions insurance appropriate to Consultant’s profession to a minimum coverage of $1,000,000, with neither Consultant nor listed subconsultants having less than $500,000 individually.

The professional liability/errors and omissions insurance must be project specific with at least a one year extended reporting period, or longer upon request.

d. Workers’ compensation insurance in compliance with the laws of the State of California, and employer’s liability insurance in an amount not less than $1,000,000 per claimant. Additionally, the workers’ compensation policy shall include a waiver of all rights of subrogation which the insurer may have against the City.

2. Consultant shall, prior to performance of any services, file with the Risk Manager certificates of insurance with original endorsements effecting coverage required by this Exhibit INS -A. The certificates and endorsements for each insurance policy are to b e signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on the attached forms or on other forms approved by the Risk Manager. All certificates and endorsements are to be received and app roved by the Risk Manager before commencement of services. City reserves the right to require complete certified copies of all required insurance policies at any time.

The certificates of insurance and endorsements shall be sent via email. If you have no t received your request or are having difficulty with electronic upload, contact [email protected]

3. Consultant agrees that all insurance coverages shall be provided by a California admitted insurance carrier with an A.M. Best rating of A:VII or better and shall be endorsed to state that coverage may not be suspended, voided, canceled, or reduced in cover age or limits without 30 days’ prior written notice to the Risk Manager. The Risk Manager shall not approve or accept any endorsement if the endorsement contains “best effort” modifiers or if the insurer is relieved from the responsibility to give such notice.

4. Consultant agrees that the commercial general liability and business automobile liability insurance policies shall be endorsed to name City, its City Council, officers, employees, agents and volunteers as additional insureds as respects: liability arising out of activities performed by or on behalf of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain n o special limitations on the scope of protection afforded to City, its City Council, officers, employees, agents and volunteers. The General Liability Special Endorsement Form and Automobile Liability Special Endorsement Form attached to this Exhibit INS-A or substitute forms containing the same information and acceptable to the Risk Manager shall be used to provide the endorsements (ISO form CG 2010 11/85 or if not available, CG 2010 with an edition date prior to 01/04 and CG 2037).

5. The coverages provided to City shall be primary and not contributing to or in excess of any existing City insurance or self-insurance coverages (this must be endorsed). Additionally, the workers’ compensation policy shall include a waiver of all rights of subrogation which th e insurer may have against the City. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its City Council, officers, employees and volunteers. The insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

6. The insurer shall declare any deductibles or self -insured retentions to and be approved by the Risk Manager. At the option of the Risk Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its City Council, officers, employees and volunteers, or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

161

Agreement Number: A-8604

15 7. All insurance standards applicable to Consultant shall also be applicable to Consultant's subconsultants.

Consultant agrees to maintain appropriate agreements with subconsultants and to provide proper evidence of coverage upon receipt of a written request from the Risk Manager.

INSTRUCTION FOR SUBMITTING INSURANCE CERTIFICATES AND ENDORSEMENT FORMS

Certificates of Insurance

The sample accord form on the following page is provided to facilitate your preparation and submission of certificates of insurance. You may use this or any industry form that shows coverage as broad as that shown on the attached sample. Please note the certificate holder address must be as shown on the attached sample accord form with the contract number and insurance exhibit identification information completed.

Improperly addressed certificates may delay the contract start -up date because the City’s p ractice is to return unidentifiable insurance certificates to the insured for clarification as to the contract number. Cancellation provisions must be endorsed to the policy. Modifying the certificate does not change coverage or obligate the carrier to provide notice of cancellation.

Endorsement Forms

Original endorsements are required for commercial general liability and business automobile liability insurance policies and must be attached to the applicable certificate of insurance. City preference is that the Consultant/insurer use the endorsement forms which are attached. Substitute forms will be accepted, however, as long as they include provisions comparable to the sample accord form.

INS-A.doc

ACORD CERTIFICATE OF INSURANCE ISSUE DATE (MM/DD/YY)

PRODUCER

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE

DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

CODE SUB-CODE

COMPANIES AFFORDING INSURANCE COVERAGE

INSURED

COMPANY

LETTER A SPECIFY COMPANY NAMES IN THIS SPACE

COMPANY

LETTER B

COVERAGES

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE

POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT

WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

C
O
L
T
R

TYPE OF

INSURANCE

POLI
CY
NUM
BER

POLIC
Y
EFFE
CTIVE
DATE
(MM/D
D/YY)

POLIC
Y
EXPIR
ATION
DATE
(MM/D
D/YY)

LIMITS

GENERAL

LIABILITY
[x] COMMERCIAL

GENERAL
LIABILITY [ ]
CLAIMS MADE [x]
OCCUR.

GENERAL AGGREGATE
$1,000,000
PRODUCTS COMP/OP AGG .
$1,000,000
PERSONAL & ADV. INJURY
$1,000,000
162

Agreement Number: A-8604

16 [x] OWNER'S &

CONTRACTOR'S
PROT.

EACH OCCURRENCE
$1,000,000
FIRE DAMAGE (Any one fire)
$
MED. EXPENSE (Any one person)
$

AUTOMOBILE

LIABILITY
[x] ANY AUTO

ALL OWNED
AUTOS

SCHEDULED
AUTOS

HIRED AUTOS

NON-OWNED
AUTOS
GARAGE

LIABILITY

COMBINED SINGLE
$1,000,000
LIMIT
BODILY INJURY $
(Per person)
BODILY INJURY $
(Per accident)
PROPERTY DAMAGE $

EXCESS

LIABILITY

UMBRELLA
FORM

OTHER THAN

UMBRELLA FORM

EACH OCCURRENCE $

AGGREGATE $

WORKERS'

COMPENSATION
AND

EMPLOYERS'

LIABILITY

STATUTORY LIMITS
EACH ACCIDENT $1,000,000

DISEASE-POLICY LIMIT
$1,000,000

DISEASE-EACH EMPLOYEE
$1,000,000

OTHER
Errors and omissions insurance or malpractice insurance available for the insured's profession

Minimum coverage $1,000,000
Each consultant/ $500,000
& listed sub-consultant

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/RESTRICTIONS/SPECIAL ITEMS

CERTIFICATE HOLDER

CITY OF OXNARD ℅ Evident ID, Inc.
8520 Allison Pointe Blvd. Ste 223
PMB 5210
Indianapolis, Indiana 462500-4299 US

CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE

THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED

TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO

OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES.

AUTHORIZED REPRESENTATIVE

Rev. 1/23INS-A.doc

GENERAL LIABILITY SPECIAL ENDORSEMENT
FOR THE CITY OF OXNARD (the “City”)

SUBMIT IN DUPLICATE

ENDORSEMEN
T NO.

ISSUE DATE
(MM/DD/YY)
PRODUCER POLICY INFORMATION:

Insurance Company:

Policy No.:

NAMED INSURED

APPLICABILITY. This insurance pertains to the operations, products and/or tenancy of the named insured under all written agreements and permits in force with the City unless checked here ❒ in which case only the following specific agreements and permits with the City are covered

163

Agreement Number: A-8604

17 TYPE OF INSURANCE

CITY AGREEMENTS/PERMITS

GENERAL LIABILITY
❒ COMMERCIAL GENERAL LIABILITY
❒ COMPREHENSIVE GENERAL

LIABILITY
❒ OWNERS & CONTRACTORS

PROTECTIVE

❒ Claims Made
Retroactive Date

❒ Occurrence

OTHER PROVISIONS

COVERAGES

LIABILITY LIMITS IN
THOUSANDS $
EACH
OCCURR
ENCE
AGGREG
ATE
❒ GENERAL
❒ PRODUCTS/COMPLETED

OPERATIONS
❒ PERSONAL & ADVERTISING
INJURY
❒ FIRE DAMAGE
❒
❒
CLAIMS: Underwriter’s representative for claims pursuant to this insurance.

Name:

Address:

Telephone: ( )
In consideration of the premium charged and notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any endorsement now or hereafter attached thereto, insurance company agrees as follows:

1. INSURED. The City, its officers, agents, employees and volunteers are included as insureds with regard to liability and defense of sui ts arising from the operations, products and activities performed by or on behalf of the named insured.

2. CONTRIBUTION NOT REQUIRED. As respects: (a) work performed by the named insured for or on behalf of the City; or (b) products sold by the named insured to the City; or (c) premises leased by the named insured from the City, the insurance afforded by this policy shall be primary in surance as respects the City, its officers, agents, employees or volunteers; or stand in an unbroken chain of coverage excess of the named insured’s scheduled underlying primary coverage. In either event, any other insurance maintained by the City, its of ficers, agents, employees or volunteers shall be in excess of this insurance and shall not contribute with it.

3. SEVERABILITY OF INTEREST. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the company’s limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organiz ation would have as a claimant if not so included.

4. CANCELLATION NOTICE. With respect to the interests of the City, this insurance shall not be canceled, or materially reduced in coverage or limits except after thirty (30) days prior written notice by receipted delivery has been given to the City.

5. PROVISIONS REGARDING THE INSURED’S DUTIES. Any failure to comply with reporting provisions of the policy or breaches or violations of warranties shall not affect coverage provided to the City, its officers, agents, employees or volunteers.

6. SCOPE OF COVERAGE. This policy, if primary, affords coverage at least as broad as:
a. Insurance Services Office Commercial General Liability Coverage, “occurrence” form CG0001; or b. If excess, affords coverage which is at least as broad as the primary insurance form CG0001.

Except as stated above nothing herein shall be held to waive, alter or extend any of the limits, conditions, agreements or exclusions of the policy to which this endorsement is attached.

ENDORSEMENT HOLDER

CITY OF OXNARD ℅ Evident ID, Inc.
8520 Allison Pointe Blvd. Ste 223
PMB 5210
Indianapolis, Indiana 462500-4299 US

AUTHORIZED REPRESENTATIVE
❒ Broker/Agent ❒ Underwriter ❒

I (print/type name), warrant that I have
authority to bind the above -mentioned insurance company and by my signature hereon do so bind this company to this endorsement.

Signature
(original signature required)
Telephone: ( ) Date Signed:

Rev. 1/23 INS-A.doc
164

AUTOMOBILE LIABILITY SPECIAL ENDORSEMENT
FOR THE CITY OF OXNARD (the “City”)

SUBMIT IN DUPLICATE
ENDORSEMENT NO.

ISSUE DATE (MM/DD/YY)
PRODUCER POLICY INFORMATION:

Insurance Company:

Policy No.:

Policy Period: (from) (to)
LOSS ADJUSTMENT EXPENSE ❒ Included in Limits
❒ In Addition to Limits
Telephone:
❒ Deductible ❒ Self-Insured Retention (check which) of $ with an Aggregate of $ applies to
coverage. ❒ Per Occurrence ❒ Per Claim (which) NAMED INSURED APPLICABILITY. This insurance pertains to the operations, products and/or tenancy of the named insured under all written agreements and permits in force with the City unless checked here ❒ in which case only the following specific agreements and permits with the City are covered:

CITY AGREEMENTS/PERMITS

TYPE OF INSURANCE OTHER PROVISIONS
❒ COMMERCIAL AUTO POLICY
❒ BUSINESS AUTO POLICY
❒ OTHER

LIMIT OF LIABILITY
CLAIMS: Underwriter’s representative for claims pursuant to this insurance.

Name:

Address:

Telephone: ( )

$ per accident, for bodily injury and property damage.

In consideration of the premium charged and notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any endorsement now or hereafter attached thereto, insurance company agrees as follows:

1. INSURED. The City, its officers, agents, volunteers and employees are included as insureds with regard to liability and defense of suits arising from the operations, products and activities performed by or on behalf of the named insured.

2. CONTRIBUTION NOT REQUIRED. As respects: (a) work performed by the named insured for or on behalf of the City; or (b) products sold by the named insured to the City; or (c) premises leased by the named insured from the City, the insurance afforded by this policy shall be primary insurance as respe cts the City, its officers, agents, employees or volunteers; or stand in an unbroken chain of coverage excess of th e named insured’s scheduled underlying primary coverage. In either event, any other insurance maintained by the City, its of ficers, agents, employees or volunteers shall be in excess of this insurance and shall not contribute with it.

3. SEVERABILITY OF INTEREST. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the co mpany’s limits of liability.

The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included.

5. PROVISIONS REGARDING THE INSURED’S DUTIES. Any failure to comply with reporting provisions of the policy or breaches or violations of warranties shall not affect covera ge provided to the City, its officers, agents, employees or volunteers.

6. SCOPE OF COVERAGE. This policy, if primary, affords coverage at least as broad as:
a. Insurance Services Office Automobile Liability Coverage, “occurrence” form CA0001, code ("any auto"); or b. If excess, affords coverage which is at least as broad as the primary insurance form referenced in the preceding section (1).

Except as stated above nothing herein shall be held to waive, alter or extend any of the limits, conditions, agreements or ex clusions of the policy to which this endorsement is attached.

ENDORSEMENT HOLDER

CITY OF OXNARD ℅ Evident ID, Inc.
8520 Allison Pointe Blvd. Ste 223
PMB 5210
Indianapolis, Indiana 462500-4299 US

AUTHORIZED REPRESENTATIVE
❒ Broker/Agent ❒ Underwriter ❒

I (print/type name), warrant that I have authority to bind the above-mentioned insurance company and by my signature hereon do so bind this company to this endorsement.

Signature
(original signature required)
Telephone: ( ) Date Signed
Rev. 1/23 INS-A.doc

165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
Profit and Loss
Teatro de las Americas
January-December, 2024
Accrual Basis Wednesday, November 12, 2025 10:49 PM GMTZ 1/2

DISTRIBUTION ACCOUNT TOTAL
Income
Grants 12,500.00
Individual Donations 1,724.90
Recycling 91.59
Services $650.00
Adan, Eva y la otra 349.89
After School Program 1,085.29
First Jueves 119.00
Fundraiser Karaoke 306.91
Fundraiser Paul & Raquel 8,886.85
iStarELA 3,395.84
Juguetones 350.00
La Sirenita 3,747.14
Luchadora 3,902.52
Mecánico de Sueños 1,126.15
Muero por Vivir 345.00
Nos Traen Cortitos 694.63
Practicas Teatrales 541.50
Private Events 253.00
Salsa class 173.00
Taller de Cine 420.00
Total for Services $26,346.72
Uncategorized Income 2,579.96
Total for Income $43,243.17
Gross Profit $43,243.17
Expenses
Advertising & Marketing 6,432.38
Bank Charges & Fees 203.42
Contractors 750.00
Insurance 2,189.00
Job Supplies 5,250.45
Legal & Professional Services
Adan, Eva y la otra 739.29
iStarEla 2,242.03
Juguetones 750.00
La Sirenita 2,705.00
Luchadora 3,585.78
Mecánico de Sueños 390.00
Muero por Vivir 197.13
Nos Traen Cortitos 2,104.15
Practicas Teatrales 270.75
182
Profit and Loss
Teatro de las Americas
January-December, 2024
Accrual Basis Wednesday, November 12, 2025 10:49 PM GMTZ 2/2

DISTRIBUTION ACCOUNT TOTAL
Taller de cine 65.00
Total for Legal & Professional Services $13,049.13
Meals & Entertainment 530.93
Office Supplies & Software 1,323.22
Reimbursable Expenses 764.75
Repairs & Maintenance 13,235.00
Taxes & Licenses 358.00
Uncategorized Expense 2,000.00
Utilities 2,991.69
Total for Expenses $49,077.97
Net Operating Income -$5,834.80
Net Other Income
Net Income -$5,834.80
183
Profit and Loss
Teatro de las Americas
January-December, 2025
Accrual Basis Monday, January 05, 2026 11:36 PM GMTZ 1/2

DISTRIBUTION ACCOUNT TOTAL
Income
Board Donations 5,262.99
Grants 25,000.00
Individual Donations 1,371.66
Insurance. 192.00
Recycling 21.27
Services $250.00
33rd Anniversary Fundraiser 571.00
Adventures in Dance 203.01
After School Program 1,303.30
Alicia´s Miracle 2,142.76
Drawing Group 50.00
El Teatrito 1,727.64
Fundraiser Karaoke 62.00
Luchadora 18.61
Luciano Brindisi-Solo Chistes 852.80
Noche de Cine 80.00
Nos Traen Cortitos 444.64
Poesia Workshop 40.00
Practicas Teatrales 250.00
Private Events 869.00
Regreso a mi CUBA 1,591.00
Sonidos de Ausencias 3,325.13
Storytelling Workshop 60.00
Taller de Cine 640.00
Taller de Dramaturgia (Juan Pablo) 20.00
Total for Services $14,500.89
Tax Refund/ Tax Overpayment Refund 824.23
Total for Income $47,173.04
Gross Profit $47,173.04
Expenses
Advertising & Marketing 5,783.96
Bank Charges & Fees 156.82
Contractors 4,000.00
Insurance 651.00
Job Supplies 139.10
Legal & Professional Services
After School Program 651.65
Alicia's Miracle 2,796.97
El Teatrito 1,619.04
Luchadora 43.44
Luciano Brindisi-Solo Chistes 594.78
184
Profit and Loss
Teatro de las Americas
January-December, 2025
Accrual Basis Monday, January 05, 2026 11:36 PM GMTZ 2/2

DISTRIBUTION ACCOUNT TOTAL
Nos Traen Cortitos 50.00
Poesía Workshop 90.00
Regreso a mi CUBA 934.44
Sonidos de Ausencias 3,715.79
Taller de cine 1,128.00
Total for Legal & Professional Services $11,624.11
Meals & Entertainment 263.18
Memberships 230.00
Office Supplies & Software 2,280.66
Other Business Expenses 90.00
Reimbursable Expenses 241.38
Repairs & Maintenance 2,922.68
Taxes & Licenses 1,808.73
Utilities 2,951.26
Total for Expenses $33,142.88
Net Operating Income $14,030.16
Net Other Income
Net Income $14,030.16
185
Teatro de las Américas
Lease Agreement
Brenda Lopez, Director
Housing Department
City Council
February 3, 2026
186
Background 2

1. Teatro de las Américas is a non profit
bilingual theatre company that engages
in performing arts and education
reflecting and nurturing the community
located in the heart of downtown Oxnard.

2. With a vision to be the dominant
Spanish-language theatre on the Central
Coast, Teatro de las Américas values
respect among peoples and envisions
that every segment of our community will
come together in artistic and creative
ways to promote these values.
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Background 3

1. The City of Oxnard owns a 1,980 square foot building at 321 West Sixth Street in downtown Oxnard.

2. The City of Oxnard entered into an initial lease agreement (8828-19-CD) with Teatro de las Américas (Teatro) on November 18, 2019 for theatre and performing arts.

3. The monthly rental rate was calculated at fifty-cents per square foot (.50c/SF) (1,980 sq ft x $.50= $990/ month).

4. The initial term expired on November 20, 2022.

5. On June 29, 2023 City Council approved a First Amendment extending the term to November 20, 2024, recognized a rent credit of $35,000 for property improvements made by Teatro, and approved a $15,000 rental credit due to building’s closure resulting from COVID-19.

6. Teatro has been operating on a month-to-month lease since November 2024. 188
Discussion 4

1. In 2025, Teatro experienced major setbacks that reduced its income, including the last-minute cancellation of a nearly completed production and additional cancellations caused by a shortage of volunteer support. Attendance has also
dropped sharply.

2. Based on financial information provided by Teatro, there was a net loss for 2024 of $5,834.80 and $5,969.84 for 2025.

3. Given their limited revenue, Teatro has an outstanding unpaid rent balance of $13,860 for the period of December 2024 to January 2026, plus an outstanding balance of $1,830 from the initial lease term (total of $15,690).
189
Discussion 5
On October 9, 2025, Teatro de las Américas (Teatro) submitted a request for consideration of rent forgiveness and a new lease with modified terms. Teatro is seeking:

1. A new lease with an initial three year term and two one-year options to extend the lease for a maximum lease term of five years.

2. An annual lease fee of $1.00.

3. Forgiveness of past due rent totaling $15,690 through January 2026 as well as a daily pro rata ($35.36) rental forgiveness in the month of February 2026 until effective date of new lease.

Staff recommends approving Teatro’s request with the expectation that rent payments will begin once revenues permit. Should Teatro become profitable, Teatro would pay quarterly rent up to $2,970 of their quarterly gross revenues in excess of $10,560.

This action helps sustain the community arts, preserves a dedicated arts venue in Downtown, and ensures the City’s building remains occupied and properly maintained at no cost.
190
Financial Impact 6
If the City Council approves the proposed lease agreement, rental revenue of $3 is anticipated to be received into the General Fund account during the proposed initial three year lease, prior to any optional lease extensions.

The financial impact to the City would be a loss of $15,690 in rental revenue for the past due rental payments, and up to 28 days of daily pro-rata rental forgiveness in the month of February 2026 at a daily cost of $35.36.

Should Teatro’s quarterly gross revenues not be sufficient, as noted in the staff report, to require quarterly rent payments to the City of up to $2,970, there is potential loss of future rental revenue for the proposed initial three year lease term, which equates to up to $35,640.

However, the City would experience cost savings for building maintenance expenses for the initial term of the lease.
191
Committee Outcome 7
The Community Services, Public Safety, and Housing & Economic Development committee heard the item on January 13, 2026.

2. Authorize the Mayor to forgive past due rent to the City in the amount of $15,690 for past due rent through January 2026, plus a daily pro-rata share through February 2026.
193
End of Presentation
194

CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.3

DATE: February 3, 2026

TO: City Council

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Introduction of Cross-Connection Control and Backflow Prevention Ordinance.

RECOMMENDATION

That the City Council introduce and waive first reading of the proposed Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD AMENDING ARTICLE IV OF CHAPTER 22 OF THE CITY CODE

IN ITS ENTIRETY PERTAINING TO THE REGULATION OF CROSS-CONNECTION AND BACKFLOW STANDARDS.

(The Public Works and Transportation Committee approved 3-0 on January 27, 2026 with an amended Ordinance.)

Please click the following link to view the required Measure M pre-recorded presentation video:
https://youtu.be/h8n4DJZfXy8

BACKGROUND

The State Water Resources Control Board (“SWRCB”) requires all potable water systems to follow the cross-connection protection mandates set forth in the Cross-Connection Control Policy Handbook. A cross-connection is an interconnection between a potable (aka drinking) water supply and a non-potable source via any connection or structural arrangement between a public water system (“PWS”) and any source or distribution system containing liquid, gas, or other substances not from an approved water supply. Bypass arrangements, jumper connections, removable sections, improperly installed swivel or change-over devices, and other temporary or permanent devices through which, or because of which, backflow can occur are considered to be cross-connections. Backflow is the undesired or unintended reversal of flow of water and/or other liquids, gases, or other substances into a PWS. It is industry standard to utilize backflow prevention assemblies to protect the potable water distribution systems. The assemblies prevent water that has been delivered to a customer through a water meter from re-entering the cityside of the water system, thus protecting the City’s system and other City water customers from contamination and pollution.

The purpose of the Cross-Connection Program is the protection of public health through the establishment of standards intended to ensure a PWS is protected against contamination or pollution by:
• Isolating the PWS from actual or potential cross-connections that may occur because of undiscovered or unauthorized connections;
• Eliminating existing connections between the PWS and other sources of water that are not approved as safe and potable for human consumption;
• Eliminating cross-connections between drinking water systems and other sources of water or process water used for any purpose whatsoever that jeopardize the safety of the PWS; • Preventing future cross-connections; and
• Protecting the PWS from plumbing defects or cross-connections that may endanger the drinking water supply. 195
On April 19, 1966, City Council adopted City Ordinance 1009, which established the City’s Cross-Connection Program.

Additionally, the intent of ordinance 1009 was to recognize varying degrees of hazard and to apply the principle that the degree of protection should be commensurate with the degree of hazard.

On July 13, 2004, City Council adopted Oxnard City Ordinance 2661 which amended the City code regarding contamination prevention and water security programs and established certain fees and charges for these programs.

On July 11, 2017, City Council adopted Oxnard City Ordinance 2921. This ordinance amended fees and penalties for failing to comply with the ordinance above.

DISCUSSION

The SWRCB previously regulated Cross-Connection Programs under the California Code of Regulations Title 17, amended to CCR Title 22 and pursuant with the Safe Water Drinking Act. The California Cross Connection Policy Handbook (“CCCPH”), adopted by the State December 19, 2023, and effective on July 1, 2024, is the primary enforcement and regulatory authority for cross-connection control and backflow prevention of public water systems.

With the most recent adoption of the CCCPH, there are regulatory changes and mandates that affect all Cross-Connection Control Programs. Most notably, the changes impacting the City of Oxnard’s current ordinance are:
• CCCPH 3.1.1 (a) ((1)) Operating Rules or Ordinances
o “The public water system’s legal authority to implement corrective actions due to noncompliance in one of the following ways:
▪ Deny or discontinue water service to a water user,
▪ Install, inspect field test, and/or maintain a backflow prevention assembly (BPA) at a water user’s premises, or
▪ Otherwise address in a timely manner a failure to comply with the CCCPH • CCCPH 3.1.1 ((2)) Cross-Connection Control Program Coordinator o For PWS with more than 3,000 service connections the Cross-Connection Control Program Coordinator must be a cross-connection control specialist.
• CCCPH 3.1.1.3 Hazard Assessments
o The Public Water System (PWS) must survey its service area and conduct hazard assessments per Article 2 of this Chapter (CCCPH 3) that identifies actual or potential cross-connection hazards, degree of hazard, and any backflow protection needed.
• CCCPH 3.1.1.3 (9) Public Outreach and Education
o The PWS must implement a cross-connection control public outreach program and education program element that includes educating staff, customers, and the community about backflow protection and cross-connection control. The PWS may implement this requirement through a variety of methods which may include providing information on cross-connection control and backflow in periodic water bill inserts, pamphlet distribution, new customer documentation, email, and consumer confidence reports.

In order to comply with the CCCPH, the City Attorney's Office and Water Division have developed an Ordinance that complies with the State’s regulatory standards. The City’s proposed Ordinance, which amends Article IV of Chapter 22 of the Oxnard City Code pertaining to the regulation of cross-connection and backflow standards, has been submitted to and reviewed by SWRCB.

A summary of the key changes from the existing Ordinance (2661) that was based on California Code of Regulations Title 17 to the proposed Ordinance, based on the CCCPH are:
• Previous ordinance 2661 relied on adopted California Department of Health Services (CDHS) rules and California Uniform Plumbing Code provisions by reference. New ordinance: Makes the Cross-Connection Control Policy Handbook (CCCPH) the core governing standard and states the most current CCCPH (as adopted/amended) must be used.
• Previous ordinance 2661 did not have formal, statewide-mandated elements for public outreach, incident response, local entity coordination to the extent in CCCPH 196
• Previous ordinance 2661 required surveys of service connections and backflow protection, but the hazard- assessment concept was less explicitly developed and did not include customer/owner must provide access within five (5) business days for a hazard assessment; failure can require air gap or reduced pressure principle backflow prevention assembly protection or termination until access is granted. • Previous ordinance 2661 required paper reports, per CCCPH guidelines this ordinance requires digital inspection and testing forms that must be uploaded to the Water Division Backflow Portal Without passage of this ordinance, the Water Division may face increased public health and safety risk and reduced program effectiveness. The SWRCB Division of Drinking Water’s Cross-Connection Control Policy Handbook (CCCPH) states that if a public water system fails to comply, enforcement may include compliance, enforcement, or other corrective actions. While the CCCPH does not specify a fine schedule, any monetary penalties would come from separate enforcement authority under California’s Safe Drinking Water Act—such as administrative penalties that may be assessed up to $1,000 per day per violation (Health & Safety Code § 116650) and related enforcement tools like compliance orders (Health & Safety Code § 116655).

STRATEGIC PRIORITIES

FINANCIAL IMPACT

There is no direct fiscal impact to approving this Ordinance. The proposed Ordinance, similar to the existing City Ordinance, includes fines and fees to ensure customer compliance and to support the costs associated with the Water Division’s Cross-Connection Program.

COMMITTEE OUTCOME

The Public Works and Transportation Committee approved 3-0 on January 27, 2026. The Committee's approval to forward the ordinance to the City Council for their consideration included an amended ordinance that had no substantive changes from the initial draft ordinance. A redline version of the updated draft ordinance is attached as well as a clean final version.

Please click here to view the Measure M pre-recorded presentation video.

Please click here to view the January 27, 2026 Public Works and Transportation Committee Meeting recording.

Prepared by: Timothy Beaman, Assistant Public Works Director, Chris Peyton, Water Division Manager

ATTACHMENTS

1. Updated Ordinance Draft - Redline Version

2. Updated Ordinance Draft - Clean Version

3. Existing Ordinance 2661

4. Presentation

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202
203
204
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208

ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OXNARD
AMENDING ARTICLE IV OF CHAPTER 22 OF THE CITY CODE IN ITS

ENTIRETY PERTAINING TO THE REGULATION OF CROSS-

CONNECTION AND BACKFLOW STANDARDS

WHEREAS, the California Department of Drinking Water requires water service connection to any premises within the City to comply with State cross connection control and backflow regulations; and

WHEREAS, the purpose of this ordinance is to comply with state regulations and protect the public potable water supply from actual or potential cross-connections; and

WHEREAS, cross-connection control standards are governed by the Cross-Connection Policy Handbook and compliance is required for all California Public Water Systems; and

WHEREAS, the Oxnard Water Resources Division has received approval regarding the following rules, regulations and implementation of City cross-connection and backflow standards from the State Water Resources Control Board; and

WHEREAS, this ordinance requires owners of backflow prevention assemblies to adhere to inspections, repairs, and testing by the Oxnard Water Resources Division to insure proper backflow protection and public health; and

WHEREAS, this ordinance includes penalties upon premises where required backflow prevention assemblies are not installed, inspected, or properly maintained; where backflow prevention assemblies are found to have been removed, altered, or rendered inoperative; where unprotected cross-connections or other hazards to the water system are found to exist; and where a required low pressure cut-off prevention assembly is not installed, inspected tested or properly operating and maintained.

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

Part 1. Incorporation of Recitals. The findings and determinations reflected above are true and correct, and are incorporated by this reference as though fully set forth herein as the cause and foundation for the action taken by and through this Ordinance.

Part 2. Codified Amendment. The City Clerk is directed to request that the publisher of the City Code add thereto the amendments listed in Part 3 of this Ordinance to Chapter 22, Article IV of the City Code as set forth below.

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Part 3. Sections 22-70 through 22-78 of Article IV in Chapter 22 of the City Code are repealed in their entirety and replaced with the following code Sections 22-70 through 22-82 as follows:

Section 22-70. PURPOSE AND INTENT.
(A) The purpose of this Article is to:

1. Protect the public potable water supply from actual or potential cross-connections by isolating mechanically or physically, contamination or pollution that could backflow or siphon into the water supply system because of some undiscovered or unauthorized cross-connection on the premises;

2. Eliminate existing unprotected connections between drinking water systems and other sources of water that are not approved as safe and potable for human consumption or can cause an adverse water quality;

3. Eliminate cross-connections between drinking water systems and other sources of water or process water used for any purpose whatsoever that jeopardize the safety of the potable water supply;

4. Prevent the making of cross-connections in the future;

5. Protect the potable water supply where plumbing defects or cross-connections may endanger the potable water supply available on the premises; and

6. Provide for the maintenance and management of a cross-connection control program that will systematically and effectively prevent the contamination or pollution of all potable water systems.

(B) The intent of this Article is to recognize that there are varying degrees of cross connection hazards and to apply the principle that the degree of protection should be commensurate with the degree of hazard.

Section 22-71. DEFINITIONS.
(A) For the purpose of this Article, unless the context clearly requires a different meaning, the words, terms and phrases hereinafter set forth shall have the meaning given them in this section:

1. Backflow means an undesired or unintended reversal of flow of water and/or other liquids, gasses, or other substances into a public water system’s distribution system or approved water supply.

2. Backflow Prevention Assembly means mechanical assembly designed and constructed to prevent backflow, such that while in-line it can be maintained and its ability to prevent backflow, as designed, can be field tested, inspected and evaluated.

3. Cross connection means any actual or potential connection or structural arrangement between a public, private or consumer's potable water system and any other water source or system through which it is possible to introduce an unapproved potable or non-potable water source into the potable water system. Cross connections include bypass arrangements, jumper connections, removable sections, swivel or changeover 210
Ordinance No.______
Amending Article IV of Chapter 22
Page No. 3

devices, and other assemblies (temporary or permanent) through which or because of which backflow can occur and that are used in conjunction with backflow prevention.

4. Cross-Connection Control Policy Handbook (CCCPH) contains the State of California’s regulations pertaining to cross-connection control standards that are applicable to all California Public Water Systems. The most current adopted or as amended CCCPH shall be used in conjunction with this ordinance.

5. Customer, as also defined in Section 22-1(F) means Any person applying for water service and responsible for payment of waterbills.

6. Oxnard Water Resources Division, as also defined in Section 22-1(R) means the authorized and enforcing owner of the public water system subject to this Article.

7. Public Water System (PWS) A system for the provision of water for human consumption through pipes or other constructed conveyances that has 15 or more service connections or regularly serves at least 25 individuals daily at least 60 days out of the year. (Health & Safety Code 116275 (h))

8. Backflow Portal means a website where required certifications shall be uploaded at https://www.oxnard.gov/public-works/water/backflow-prevention Section 22-72. COMPLIANCE REQUIRED.
(A) All water service connections to any property or premise served by the Oxnard Water Resources Division shall be installed and maintained in accordance with state regulations and the provisions of this Article.
(B) If any backflow prevention assembly on a property or premise is not in compliance with testing and inspection requirements as set forth in the CCCPH, then the Oxnard Water Resources Division may terminate all water service to the property.

Section 22-73. CROSS CONNECTION CONTROL STANDARDS.
(A) Health and Safety Code section 116555.5 mandates that the Cross-Connection Control Policy Handbook and its standards apply to all California Public Water Systems, including the City of Oxnard's PWS.
(B) The State Water Resources Control Board (“Board”) is authorized to promulgate rules and regulations governing cross-connections. The City of Oxnard and its Water Resources Division must adhere to and enforce all such rules and regulations promulgated by the Board within its PWS boundaries.
(C) Cross connections within Oxnard Water Resources Division’s service area are required to comply with standards for the design, construction, installation, and maintenance of Backflow Prevention Assemblies as set forth by the CCCPH. The Oxnard Water Resources Division may set forth requirements for protective assemblies based on Hazard Assessments as set forth in Section 22-74(F)(1).

Section 22-74. INSPECTION OF PROTECTIVE DEVICES AND HAZARD ASSESSMENTS.
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(A) The Customer and/or the owner of Backflow Prevention Assemblies shall have inspections, repairs and proper testing made of all Backflow Prevention Assemblies installed on their premises annually, unless the Oxnard Water Resources Division deems additional inspections are necessary to insure proper backflow protection.

1. The Backflow Prevention Assembly installed must be no less protective than that which is commensurate with the degree of hazard at user premises as specified in the CCCPH section 3.2.2 (b).

2. All inspections, testing, repairs, and replacements shall be completed by a business or individual that possesses a certification stating they are a Certified Tester that is current and in good standing with a certifying organization recognized by the State Water Resources Control Board.

3. The Backflow Prevention Assembly shall be tested, inspected, repaired, or replaced at the expense of the Customer. The Oxnard Water Resources Division shall follow the requirements for the conducting and reporting of the testing, inspections, repairs, and replacements as set forth in CCCPH section 3.2.2.

4. The Oxnard Water Resources Division shall verify the qualifications and certification required by the Board for individuals or Businesses authorized to perform inspections, maintenance, repairs, or replacements of Backflow Prevention Assemblies. (B) The Oxnard Water Resources Division shall issue an annual notice to the Customer regarding each Backflow Prevention Assembly in order to to arrange for the inspection and testing of each Backflow Prevention Assembly on the premises. The notice will include a $21 administrative fee, which will be included on the Customer’s utility bill. The notice shall include the method to report compliance to the Oxnard Water Resources Division as well as information necessary to arrange for inspection and testing. All inspection reports must be uploaded to the Oxnard Water Resources Division’s Backflow Portal website. (C) After testing and inspection, and any required maintenance, repairs or replacements, then the certified tester must electronically submit the completed inspection and testing compliance forms to the Oxnard Water Resources Division Backflow Portal website by the due date stated in the annual notice.
(D) If the certified tester does not upload the completed compliance forms to the Oxnard Water Resources Division Backflow Portal website by the due date stated in the annual notice, then the Oxnard Water Resources Division may issue a notice of first violation, and if the completed compliance forms are not uploaded to the Backflow Portal within the time period stated in the notice of first violation, then a 72-hour notice shall be mailed to the customer and posted at the property or premise at issue, stating that all water services to the property may be terminated within 72 hours of the posted notice, unless the completed compliance forms are uploaded to the Oxnard Water Resources Division Backflow Portal website. (E) Compliance with this section shall occur when the Oxnard Water Resources Division receives both the completed and in compliance inspection form in the Oxnard Water Resources Division Backflow Portal and payment of the annual inspection fee. (F) If the Customer fails to comply with the provisions of this Article, then the Oxnard Water Resources Division may authorize certified City employees or a certified third party service 212
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provider to perform inspections, maintenance, repairs, replacements and related testing services, to ensure the Backflow Prevention Assembly is compliant with this Article. All costs incurred by the City due to the Customer’s failure to comply with the provisions of this Article shall be the sole responsibility of the Customer , and such costs shall be billed to the Customer on their monthly utility bill. Per Article 2 Section 3.2.1(a) of the CCCPH, an initial Hazard Assessment to evaluate the potential for backflow into the PWS must be conducted by the Oxnard Water Resources Division. The assessment will include inspection of the Customer premises within its system service area to identify potential hazards to the PWS.

1. The Hazard Assessment must consider the following:
i. (1) The existence of cross-connections;
ii. (2) the type and use of materials handled and present, or likely to be, on the user premises;
iii. (3) the degree of piping system complexity and accessibility; iv. (4) access to auxiliary water supplies, pumping systems, or pressure systems; v. (5) distribution system conditions that increase the likelihood of a backflow event (e.g., hydraulic gradient differences impacted by main breaks and high water demand situations, multiple service connections that may result in flow- through conditions, etc.);
vi. (6) user premises accessibility;
vii. (7) any previous backflow incidents on the user premises; and viii. (8) the requirements and information provided in the CCCPH.

2. If a Customer fails to comply with the provisions of this Article, and the Oxnard Water Resources Division determines that it must perform certified testing services, the Division shall mail a notice of such determination, and within five (5) business days from the date of the notice, customer and/or registered owner shall provide access to the property, premise, building or facility in order for the Division to conduct a Hazard Assessment pursuant to Section 22-74(F)(1). Failure to provide access will require backflow protection provided by an air gap or a reduced pressure principle backflow prevention assembly and will be billed to the Customer, or the Division may terminate all water service until access is granted and the Hazard Assessment is completed.

3. After the initial Hazard Assessment described in Section 22-74(F)(1), the Oxnard Water Resources Division may have to perform a second Hazard Assessment under the following circumstances: (1) if there is a change in customer for a property, premise, building or facility, excluding single-family residences; (2) if a property, premise, building or facility is newly connected or re-connected to the PWS; (3) if the use of the property, premise, building or facility is modified from the current approved use; (4) a backflow incident occurs at the property, premise, building or facility; (5) as may be periodically required, in accordance with the PWS’s CCCPH section 3.1.4.; (6) if the State Water Resources Control Board requests a Hazard Assessment of a Customer’s and/or registered owners property, premise, building or facility; or (7) if 213
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Amending Article IV of Chapter 22
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the PWS determines an existing Hazard Assessment may no longer accurately represent the degree of hazard.

4. After completion of the Hazard Assessment, if the current Backflow Prevention Assembly is not properly working, or is not located in the appropriate location, or is missing or not installed, then the Oxnard Water Resources Division shall issue a notice of violation to the Customer, mandating how to correct the stated violation(s) and the time period in which the corrections must be made. Additionally, the Customer shall have thirty (30) calendar days from the date of this notice of violation to notify the Division of the required corrections and to schedule an appointment so the Division can reassess the Backflow Prevention Assembly for compliance. Failure to correct all noticed violations may result in termination of water supply until the Backflow Prevention Assembly is brought into compliance with the provisions of this Article and the CCCPH.

Section 22-75. REGULATION OF BOOSTER PUMPS.
(A) When low pressure or special operating conditions makes it necessary to install a booster pump on the water service to any property, premise, building or facility, such pump shall be equipped with a low-pressure cut-off switch designed to shut off the pump when the pressure on the inlet side is 25 pounds per square inch at gauge (p.s.i.g) or lower. The Customer shall maintain the cut-off device in proper working order, and a certified tester must certify that this device is operable in addition to the required certification requested in the annual notice in Section 22-74 (B).

Section 22-76. TEMPORARY WATER SERVICE CONNECTIONS.
(A) The Oxnard Water Resources Division may require appropriate Backflow Prevention Assemblies to be installed and tested for all temporary water service connections to eliminate the potential for any backflow.

Section 22-77. PROTECTION OF WATER SYSTEM WITHIN PREMISES. (A) In addition to the standards provided in this Article, the Oxnard Water Resources Division shall require additional, more stringent standards and criteria for cross-connection control when necessary to provide adequate protection to the PWS, in the following circumstances::

1. The Oxnard Water Resources Division or the Water Division’s certified tester determines that it is not practical to protect drinking water systems through the use of standard backflow devices;

2. Water systems for fighting fires are derived from a water supply that cannot be approved for potable or safe for human consumption;

3. Potable water pipelines are connected to equipment used in industrial processes;

4. Sewage pumps or stormwater pumps require fresh water priming connections;

5. Potable water is supplied to facilities containing a sewage treatment plant, sewage pumping station, or stormwater pumping station;

6. Water supplies are provided to vessels at piers or waterfronts;

7. Potable water is supplied to premises containing dual or multiple water systems or piping; and
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Amending Article IV of Chapter 22
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8. Recycled water backflow devices shall be identified by purple paint and shall be designated only for use on recycled water supplies.

Section 22-78. THEFT.
(A) In the case of theft of a Customer’s Backflow Prevention Assembly, the Customer will have thirty (30) calendar days from the date the theft is first discovered to install a new backflow prevention assembly in accordance with this Article and the CCCPH. (B) The newly installed Backflow Prevention Assembly is subject to a Hazard Assessment pursuant to Section 22-74(F)(1), which shall be performed by a certified tester who will inspect and test the assembly as well as submit the completed compliance forms to the Oxnard Water Resources Division’s Backflow Portal website by due date indicated by the Division.
(C) Failure to comply with the requirements of this section, after notice or discovery of the theft, may result in termination of water service.

Section 22-79. PENALTIES FOR VIOLATIONS.
(A) In addition to any other remedies provided under the City Code, any violation of the provisions of this Article shall constitute a public nuisance.

(B) The Oxnard Water Division may impose fines, pursuant to Chapter 1, Article I, Section 1-10 of this Code, or as stated in this Article, upon mailed notice to a property owner and/or registered water account holder where:

1. A required backflow prevention assembly is not installed, inspected, tested, properly operating, or maintained.

2. A backflow prevention assembly is found to have been removed, altered, bypassed, or rendered inoperative.

3. Unprotected cross-connections or other hazards to the PWS are found to exist.

4. A required low pressure cut- off prevention device is not installed, inspected, tested, properly operating and maintained.
(C) In addition to any other remedies provided under the Oxnard City Code, the Oxnard Water Division may immediately terminate all water service to any property or premises where the conditions present an immediate threat to public health and safety. The Oxnard Water Division shall mail and post the termination notice issued pursuant to this section and water services will be restored once the immediate threat has been abated and there is no threat to public health and safety.
(D) Any certified tester who violates or fails to comply with any provision of this Article, or willingly falsifies inspection,maintenance, repair, replacement or certification reports / records submitted to the Oxnard Water Resources Division, shall be be prohibited from inspecting, maintaining, repairing or replacing Backflow Prevention Assemblies in the Oxnard Water Resources Division service area, in addition to any other remedies available to the City in law or equity.

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Ordinance No.______
Amending Article IV of Chapter 22
Page No. 8

Section 22-80. NOTICE OF VIOLATION; NUISANCE & ABATEMENT; CIVIL CITATION.

(A) The Oxnard Water Resources Division shall issue a notice of violation to a Customer that is not in compliance with the provisions of this Article.

1. The Notice shall state the following:
a. Name of the Customer;
b. Date the violation was discovered by the Oxnard Water Resources Division; c. The section of this Article and section of the CCCPH violated; d. Address of the violation;
e. Description of the violation;
f. Action required to correct the violation;
g. Time period in which the violation must be corrected; and h. Information on how to submit proof of correction.

2. If the violation is not corrected in the manner specified in the notice, the Oxnard Water Resources Division may take further action under City Code Chapter 22 and this Article including but not limited to termination of water service, abatement, or issuance of fines.

3. An appeal hearing for a notice of violation that may result in termination of water service, abatement can be requested pursuant City Code Chapter 7, Article 1, sections 7-7 and 7-8.
(B) The City Council declares that any violation of the provisions of this Article is a nuisance and authorizes the City Manager or Oxnard Water Resources Division to abate any such nuisance in accordance with the procedures set forth in City Code Chapter 7, Article I, sections 7-4 through 7-18.

1. A notice of abatement may be appealed in accordance with City Code Chapter 7, Article 1 sections 7-7 through 7-11.
(C) The Oxnard Water Resources Division, upon determining that a Customer has caused, created or allowed a violation of the provisions of this Article, may issue a civil citation to the Customer.

1. All civil citations shall be issued in accordance with the procedures set forth in City Code Chapter 7, Article III, sections 7-54 through 7-57.

2. The following civil citation amounts are in accordance with section 1-10 of the City Code.
a. A $100 fine may be issued for the first violation of this Article. b. A $200 fine may be issued for the second violation of this Article within one year.
c. A $500 fine may be issued for the third violation of this Article within one year.

3. All civil citations may be appealed in accordance with City Code Chapter 7, Article III, section 7-58 through 7-64

Part 4. The provisions of this ordinance shall be applicable to all Customers within the Oxnard Water Division service area upon the effective date.

Part 5. If any term or portion of this ordinance is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this ordinance shall continue in full force and effect.
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Ordinance No.______
Amending Article IV of Chapter 22
Page No. 9

Part 6. The City Council exercises its independent judgment and made findings herein above, that this ordinance is not subject to CEQA pursuant to California Environmental Quality Act Guidelines Sections 15308 and 15061(b)(3) , because the activity is covered by the general rule that CEQA applies only to projects that will have a significant effect on the environment. There is no possibility that the passage of this ordinance will have a significant effect on the environment and adoption of this ordinance is exempt from CEQA.

Part 7. Pursuant to Government Code Section 36933(c)(l), 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 (5) days before the City Council's adoption of the ordinance.

Part 8. The City Clerk shall certify as to the adoption of this ordinance and shall cause the summary thereof to be published within fifteen (15) calendar 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 [DATE], finally adopted on [DATE] to become effective on [DATE].

APPROVED AND ADOPTED this ______ day of [MONTH], [YEAR], by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

__________________________________
Luis A. Mc Arthur, Mayor

ATTEST:

________________________________
Lourdes A. López, City Clerk

APPROVED AS TO FORM:

________________________________
Stephen M. Fischer, City Attorney
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Public Works and Transportation Committee, January 27, 2026 City Council, February 3, 2026
Michael L. Wolfe, P.E.

Public Works Director
Introduction of Cross-Connection Control and
Backflow Prevention Ordinance
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RECOMMENDATION 2
That the Public Works and Transportation Committee review and recommend that the City Council introduce and waive first reading of the proposed Ordinance entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
OXNARD AMENDING ARTICLE IV OF CHAPTER 22 IN ITS

ENTIRETY PERTAINING TO THE REGULATION OF CROSS-
CONNECTION AND BACKFLOW STANDARDS.
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RECOMMENDATION 3
That the City Council introduce and waive first reading of the proposed Ordinance entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
OXNARD AMENDING ARTICLE IV OF CHAPTER 22 OF THE CITY

CODE IN ITS ENTIRETY PERTAINING TO THE REGULATION OF
CROSS-CONNECTION AND BACKFLOW STANDARDS.
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• A cross-connection is an interconnection between a
potable water supply and a non-potable source via any
connection or structural arrangement between a public
water system (“PWS”) and any source or distribution
system containing liquid, gas, or other substances not
from an approved water supply.
• The State Water Resources Control Board (“SWRCB”)
requires all PWS to follow the cross-connection
protection mandates set forth in the Cross-Connection
Control Policy Handbook.

BACKGROUND 4
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• It is industry standard to utilize backflow prevention assemblies to protect the potable water distribution
systems.
• The assemblies prevent water that has been delivered to a customer through a water meter from re-entering the
cityside of the water system, thus protecting the City’s system and other City water customers from
contamination and pollution.

BACKGROUND 5
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• On December 19, 2023 the State adopted the California Cross Connection Policy Handbook (“CCCPH”)
• Effective on July 1, 2024, the CCCPH is the primary enforcement and regulatory authority for cross-connection control and backflow prevention of public water systems.
• In order to comply with the CCCPH, the City Attorney's Office and Water Division have developed an Ordinance
that complies with the State’s regulatory standards.
• The Ordinance is the basis for the Cross-Connection
Program, which establishes the standards intended to
protect the City’s distribution system.

DISCUSSION 6
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A summary of the key changes from the existing Ordinance (2661) that was based on California Code of Regulations Title 17 to the proposed Ordinance, based on the CCCPH are:
• Previous ordinance 2661 relied on adopted California Department of Health Services (CDHS) rules and California Uniform Plumbing Code provisions by reference. New ordinance: Makes the Cross-Connection Control Policy Handbook (CCCPH) the core governing standard and states the most current CCCPH (as adopted/amended) must be used.
• Previous ordinance 2661 did not have formal, statewide-mandated elements for public outreach, incident response, local entity coordination to the extent in CCCPH
• Previous ordinance 2661 required surveys of service connections and backflow protection, but the hazard-assessment concept was less explicitly developed and did not include customer/owner must provide access within five (5) business days for a hazard assessment; failure can require air gap or reduced pressure principle backflow prevention assembly protection or termination until access is granted. • Previous ordinance 2661 required paper reports, per CCCPH guidelines this ordinance requires digital inspection and testing forms that must be uploaded to the Water Division Backflow Portal
DISCUSSION 7
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There is no direct fiscal impact to approving this Ordinance. The proposed Ordinance, similar to the existing City Ordinance, includes fines and fees to ensure customer compliance and to support the costs associated with the Water Division’s Cross-Connection Program.

FINANCIAL IMPACT 8
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End of Presentation
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CITY COUNCIL AGENDA REPORT

REPORTS
AGENDA ITEM NO. N.4

DATE: February 3, 2026

TO: City Council

FROM: Steve Naveau, Human Resources Director, (805) 385-7947, [email protected]

SUBJECT: Resolution Approving the Ratified Tentative Agreement with International Association of Firefighters, Local 1684.

RECOMMENDATION

That the City Council adopt a resolution approving the tentative agreement with the International Association of Firefighters, Local 1684.

(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/Ta9JaTHsBYc

BACKGROUND

The City of Oxnard is committed to providing the basic services local residents expect and deserve, supported by emergency medical services and fire services, in a fiscally prudent manner and in a fiscally uncertain state, federal, and business environment.

With effective responsible governance in mind, since May 2025, the City has engaged with International Association of Firefighters, Local 1684 (IAFF) to negotiate a successor Memoranda of Understanding (MOU).

If this item is approved, all City employees (1495.75 allocated positions), including the unrepresented and executive employees, will be under contract. IAFF represents a total of 124 allocated positions within the organization.

DISCUSSION

The City’s primary objectives during bargaining were to remain competitive in the labor market while exercising sound fiscal management for today and into the future, given uncertain actions at the state and federal levels, and with voter- approved Measure O local funding ending soon. With Measure O ending soon, that alone will cause the City to experience a loss of ~$20 million in local funds, which will result in cuts to programs and services. These cuts may be more severe with continued State budget cuts and federal funds no longer being an option. These contracts seek to balance employee needs with the City’s financial realities.

The terms of these agreements, which are from July 1, 2025 through June 30, 2028, achieve both City goals through moderate increases in healthcare contributions, adjustments to salary ranges to stay current in the marketplace, continued support for employee progression within those salary ranges, and one-time cash payments in lieu of cost of living adjustments (COLAs).

Healthcare Contributions

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In 2019, the City prioritized enhancing its contribution to employee healthcare to reduce high out-of-pocket costs for employees. Instead of wage increases, the City increased healthcare contributions by 50% over three years to align benefits with those offered by comparable agencies.

The current agreement builds on that commitment by increasing the City’s healthcare contribution by 5% annually. With the average HMO premium projected to increase by 6.06% in 2026, this 5% adjustment will help employees maintain their coverage with minimal financial burden. It also ensures the City remains competitive in the labor market.

Salary Range Adjustments

The City conducts regular market surveys to ensure compensation remains competitive. Based on recent salary analysis, an approximate 18% increase to salary ranges during the term of this MOU, is appropriate to maintain alignment with peer agencies. An adjustment in the salary range is not the same as an across-the-board salary adjustment. In the short term, this change only affects employees who are at the top of the current salary range.

In-Range Salary Progression/Annual Increase

Employees have historically progressed through their salary range via a 5% annual increase that caps at the top of the salary range. While the City remains committed to rewarding experience with in-range salary progression, these agreements reset the expectation that such increases are automatic and helps deconflate a COLA and an annual increase.

During the term of these contracts, in-range salary progression will continue at a rate of 5% annually for IAFF Employees.

401a Contribution

The City will increase the 401a contribution for IAFF employees by 0.6%. The City’s total contribution will be 1.5% of the IAFF employee’s base salary.

Retention Bonus

In an effort to recognize the specialized skills that this bargaining group offers the City, a 2% base salary retention bonus was offered. The bonus is one-time only and is paid the first full pay period following Council approval of the agreements. The retention bonus serves as a proactive measure to recognize the staff’s sustained performance, institutional knowledge, and commitment to the organization. Providing this incentive aligns with organizational goals of maintaining operational efficiency, preserving service quality, and supporting workforce morale.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

The total estimated cost of this package for IAFF Employees for the upcoming 3-year period is $3,826,207. This amounts to approximately 17.47% of total compensation, or 5.82% per year. One-time cash payments during the term of the MOU totaling $291,655 do not continue after FY 25-26. As a result, the net ongoing impact of the MOU starting in FY 28-29 is $3,534,552.

Labor Costing Methodology vs. Budget Methodology

As staff has shown in prior MOU-related agenda reports, the financial impact may be depicted in two ways. One methodology is more common for budget and finance professionals, who compare all of the financial costs of that contract to the year before the contract becomes effective (Base Year). This methodology compounds the increased costs over the term of the entire contract. In the case of the resolution presented here, this would be comparing the increase in costs in Year 1 to the budgeted cost of the groups in the Base Year, the increase in cost in Year 2 to the budgeted cost of 241
the groups in the Base Year, and the increase in costs in Year 3 to the budgeted cost of the groups once again in the Base Year. Using this methodology, the budget impact in Year 1 will be $1,413,240, the impact in Year 2 will be $2,590,595, and the impact in Year 3 will be $3,826,207 for a cumulative impact of $7,830,042.

The other methodology is a year over year cost increase, which is what is used predominantly in the labor relations field.

There are jurisdictions within Ventura County that depict their employee costs in this manner. This methodology shows what the increased cost is as compared with the previous year. Using this methodology, the impact in Year 1 will be $1,413,240, the impact in Year 2 will be an additional $1,177,355, and the impact in Year 3 will be a further $1,235,612, for a total impact of $3,826,207 over the 3-year term.

At the completion of the term of the MOU, the ongoing increase to the City’s budget will be $3,534,552. This cost represents the continued cost of salaries and health care benefits but removes the one-time cash payments as those would not continue outside of the MOU.

COMMITTEE OUTCOME

This item did not originate in Committee.

Prepared by: Steve Naveau, Human Resources Director, Lauren Bueling, Risk Manager

ATTACHMENTS

1. IAFF Resolution 2326

2. Attachment A IAFF TTA

3. Presentation

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CITY COUNCIL OF THE CITY OF OXNARD

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD APPROVING

THE TENTATIVE AGREEMENT BETWEEN THE CITY OF OXNARD AND THE INTERNATIONAL UNION OF FIREFIGHTERS, LOCAL 1684 AND AUTHORIZING

THE CITY MANAGER OR DESIGNEE TO TAKE THE NECESSARY

ADMINISTRATIVE ACTIONS TO IMPLEMENT THE AGREEMENT

WHEREAS, the International Association of Firefighters, Local 1684 is the recognized representative for Firefighters, Fire Engineers, Fire Captains, Fire Inspectors/Investigators, and Fire Environmental Specialist I/II’s; and

WHEREAS, the City’s Memorandum of Understanding with the International Association of Firefighters, Local 1684 expired June 30, 2025; and

WHEREAS, representatives of the City met and conferred in good faith with representatives of the International Association of Firefighters, Local 1684 concerning wages, hours, terms, and conditions of employment for employees in the bargaining unit consistent with their obligations under the Meyers-Milias-Brown Act; and

WHEREAS, the City has reached agreement with the International Association of Firefighters, Local 1684 which is reflected in Attachment “A” of this Resolution which sets forth the modified terms and conditions of employment for this bargaining unit.

NOW, THEREFORE, the City Council of the City of Oxnard resolves: that the agreement is adopted and the City Manager and/or his designee is directed to perform all acts necessary to implement its terms, including but not limited to executing the Memorandum of Understanding on behalf of the City.

PASSED AND ADOPTED THIS 3rd day of February, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

________________________________
Luis A. Mc Arthur, Mayor
ATTEST:

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Lourdes A. López, City Clerk

APPROVED AS TO FORM:

Stephen M. Fischer, City Attorney

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MEMORANDA OF UNDERSTANDING -

IN TERN ATIO N AL UN IO N O F FIREFIGHTERS,
L OCAL 1684
Pr esented to: City Council
S teve Naveau, Human Resources Director
February 3, 2026
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• Purpose
• To adopt successor Memoranda of Understanding (MOU) with the International Association of Firefighters, L ocal 1684 (IAFF). • This group represents approximately 124 employees.
• Employees in this unit consist of firefighters, fire engineers, fire captains, fire inspectors/investigators and environmental specialists.

BAC KG RO UN D
2 260
The City’s primary objectives during bargaining was to remain competitive in the labor mar ket while exer cising sound fiscal management for today and into the future, given uncertain actions at the state and f ederal levels and with voter approved M easure O local funding ending soon. The Agreements focus on:
• Healthcare Contributions
• Salary Range Adjustments
• In Range Salary Progression
• Retention Bonus
ISSUES AD D RESSED D URIN G BARG AIN IN G 3
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• Medical Plan
• Philosophy – The City should contribute money to a medical insurance plan so that coverage is affordable & treat all bargaining groups the same. • City contribution should attempt to keep pace with annual insurance premium increases to maintain affordability.
• Increasing the City’s healthcare contribution by 5% annually. • 2026 a Family is out of pocket by $219/month for a Blue Shield Trio plan
• Salary Range Adjustments
• Increase salary ranges by approximately 18% over three years. • Increase is based on peer agencies and is intended to maintain competitive salaries.

ISSUES AD D RESSED D URIN G BARG AIN IN G
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• 401a Contribution
• Increase City contribution to employee retirement account • 0.6% increase for total contribution of 1.5%of employee base salary • Retention Bonus
• Proactive measure to recognize staff’ s commitment to the organization • Aligns with organizational goals of maintaining operational efficiency and providing quality service to residents
• IAFF agr e e d t o 2% o f pay.

ISSUES AD D RESSED D URIN G BARG AIN IN G 5
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• Using the budget methodology the cumulative cost over the 3 year s of this agreement is $7,830,042.
• Using labor costing methodology the total is $3,826,207. • Due to the use of one time Retention Bonus, the net ongoing impact starting in FY 28/29 is reduced to $3,534,552
• The cost of these contracts have been assumed in the budget forecasts and as such no additional appropriations are needed.

FISC AL IMPAC T 6
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QUESTIONS
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Oxnard City CouncilFebruary 3, 2026

Oxnard City Council
February 3, 2026